| Federal Trust Corporation | |||
| Proposed Ticker: | - | 1211 Orange Avenue | |
| Exchange: | NASDAQ-Small Cap Market | Winter Park, FL 32789 | |
| Industry: | Financial (SIC Code 6035) | (407) 645-1201 | |
| Type of Shares: | Common Shares | Filing Date: | 7/8/97 | |
| U.S. Shares Filed: | 2,701,619 | Filing Price: | $2.00 | |
| Non-U.S. Shares Filed: | 0 | Offering Amount: | $5,403,238 | |
| Primary Shares: | 2,701,619 | Expenses: | - | |
| Secondary Shares: | 0 | Shares Out After: |
| Manager | Tier | Phone |
| Keefe, Bruyette & Woods, Inc. | Lead Manager | (212) 323-8470 |
| Issuer's Law Firm: | Igler & Dougherty, P.A. |
| Bank's Law Firm: | Breyer & Aguggia |
| Auditor: | KPMG Peat Marwick |
| Registrar/Transfer Agent: | Self Administered |
Dollar amounts in U.S. millions except for per share data | |||||
| 3 Month Ending Financials | |||||
| Full Year Audited Income | Latest Unaudited Income | Prior Unaudited Income | Balance Sheet | ||
| 12/31/96 | 3/31/97 | 3/31/96 | 3/31/97 | ||
| Revenue: | $10.36 | $2.65 | $2.75 | Assets: | $140.00 |
| Net Income: | -$0.98 | $0.10 | $0.00 | Curr Assets: | |
| EPS: | -$0.43 | $0.04 | $0.00 | Liabilities: | $132.67 |
| Prior EPS: | -$1.00 | $0.29 | $0.14 | Curr Liabilities: | |
| Cash Flow/Oper: | $0.59 | Equity: | $7.33 | ||
| Cash Flow/Fin: | Cash: | ||||
| Cash Flow/Inv: | |||||
| Business Description |
| The Bank is a federally chartered savings bank. The company has historically focused on a wholesale thrift strategy by purchasing loans and engaging in real estate development and related activities such as mortgage brokerage and operations. Throughout the first five years of its existence the Company focused on a wholesale thrift strategy by purchasing loans and engaging in real estate development and related activities, such as mortgage brokerage, commercial construction and office building management operations. During 1990 and 1991, the Company emphasized the origination of larger commercial real estate loans, land acquisition and development loans and commercial construction loans some of which were outside its market area. The Company relied heavily on wholesale deposits and Federal Home Loan Bank ("FHLB") advances to fund loans. The Company grew rapidly between 1989 and 1992. This rapid growth resulted primarily from the acquisition of the assets and liabilities of the First Federal of Seminole Savings and Loan Association from the Resolution Trust Corporation, in April 1992, which added $78.0 million in loans and $120.2 million in deposits. |
| Business Plan |
| The company's management team and new Board of Directors recognized several major factors impacting the Company's historical performance and future prospects, specifically: (1) in recent years, the Company had drifted in terms of market position, liquidity coverage and corporate reputation; (2) Federal Trust's wholesale strategy and real estate development and management activities did little to advance the Company's franchise value; (3) the Company had incurred substantive " opportunity costs" with regard to garnering new relationships and expanding existing relationships in recent years, as a result of its wholesale strategy and adverse publicity relating to the Company's losses and regulatory orders; and (4) the solid economic and demographic characteristics of the Company's primary market, the greater Orlando market area, combined with the substantial consolidation of the financial services arena within the primary market, has created significant opportunities for a community bank within the market. As such, a top to bottom strategic plan is being developed with a new mission, strategic direction and long-term goals. Three components of the plan are: (I) Community Bank Orientation, (ii) Lending Activities and (iii) Funding Activities. |
| Use of Proceeds |
| The proceeds from the proposed offering will be used for general corporate purposes. |