UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 1996.
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from ____________________to______________________
Commission file number 0-18127
AMERICAN BANCORP OF NEVADA
(Exact name of registrant as specified in its charter)
Nevada 94-2792608
- ------------------------------- ------------------------------------
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
4425 Spring Mountain Road, Las Vegas, Nevada 89102
- -------------------------------------------- ---------
(Address of principal executive offices) (Zip Code)
(702) 362-7222
----------------------------------------------------
(Registrant's telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Sections 13 or 15 (d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports, and (2) has been subject to such
filing requirements for the past 90 days. Yes [X] No [ ]
Indicate the number of shares outstanding of each of the issuer's classes
of common stock, as of March 31, 1996:
Common stock, $.05 par value 3,219,552
- ---------------------------- --------------------
Class Number of Shares
INDEX
PART I - FINANCIAL INFORMATION PAGE NO.
- --------------------------------------------------------------------------------
Condensed Consolidated Statements of Income
Three Months ended March 31, 1996 and 1995
Condensed Consolidated Statements of Condition
March 31, 1996 and December 31, 1995
Condensed Consolidated Statements of Cash Flows
Three Months ended March 31, 1996 and 1995
Notes to Condensed Consolidated Financial Statements
Management's Discussion and Analysis of Financial
Condition and Results of Operations
PART II - OTHER INFORMATION
Signatures
PART I - FINANCIAL INFORMATION
AMERICAN BANCORP OF NEVADA AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
THREE MONTHS ENDED MARCH
31, 1996 AND 1995
(Dollars in thousands except for earnings per share)
(Unaudited)
For the Three
Months Ended
March 31,
1996 1995
---------------
INTEREST INCOME
Interest and Fees on Loans ............................... $2,761 $2,618
Interest on Investment Securities ........................ 1,898 1,661
Interest on Federal Funds Sold ........................... 115 86
---------------
Total Interest Income .................................... 4,774 4,365
---------------
INTEREST EXPENSE
Interest on Deposits ..................................... 1,088 1,088
Interest on Securities Sold Under Agreements to Repurchase 357 168
---------------
Total Interest Expense ................................... 1,445 1,256
------ ------
NET INTEREST INCOME ........................................... 3,329 3,109
Provision for Loan Losses ................................ 0 95
---------------
NET INTEREST INCOME AFTER PROVISION
FOR LOAN LOSSES .......................................... 3,329 3,014
TOTAL NON-INTEREST INCOME: .................................... 532 346
TOTAL NON-INTEREST EXPENSE: ................................... 2,162 2,048
---------------
INCOME BEFORE TAXES ........................................... 1,699 1,312
PROVISION FOR INCOME TAXES .................................... 477 373
---------------
NET INCOME .................................................... $1,222 $ 939
===============
NET INCOME PER SHARE .......................................... $ .32 $ .25
===============
The accompanying notes are an integral part of these statements.
AMERICAN BANCORP OF NEVADA AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CONDITION
MARCH 31, 1996 AND DECEMBER 31, 1995
(Dollars in Thousands)
March 31, December 31,
1996 1995
--------------------------
(Unaudited)
ASSETS
Cash and Due From Banks ...................... $ 31,537 $ 36,376
Federal Funds Sold ........................... 7,000 9,500
Money Market Accounts ........................ 8,193 3,697
--------------------------
Total Cash and Cash Equivalents ......... 46,730 49,573
---------------------------
Available-for-sale securities ................ 117,899 120,589
Net Loans .................................... 97,726 93,244
Premises and Fixed Assets, Net ............... 11,033 10,510
Other Assets ................................. 3,754 2,775
--------------------------
TOTAL ASSETS ................................. $ 277,142 $ 276,691
==========================
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits ..................................... $ 216,166 $ 211,524
Securities Sold Under
Agreements to Repurchase ................ 31,570 36,749
Other Liabilities ............................ 1,618 1,529
--------------------------
TOTAL LIABILITIES ............................ 249,354 249,802
--------------------------
STOCKHOLDERS' EQUITY
Unrealized Gain (Loss) on
available-for-sale securities ........... (96) 284
Common Stock ................................. 162 162
Surplus ...................................... 20,454 20,420
Retained Earnings ............................ 7,379 6,156
Less Treasury Stock .......................... (111) (133)
--------------------------
Total Stockholders' Equity ................... 27,788 26,889
--------------------------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY .................... $ 277,142 $ 276,691
==========================
The accompanying notes are an integral part of these statements.
AMERICAN BANCORP OF NEVADA AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
THREE MONTHS ENDED MARCH 31, 1996 AND 1995
(Dollars in Thousands)
(Unaudited)
For the Three
Months Ended
March 31,
--------------------
1996 1995
--------------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Interest received .......................................... $ 4,769 $ 4,107
Other income ............................................... 326 346
Interest paid .............................................. (1,435) (1,236)
Cash paid to suppliers and employees ....................... (2,097) (1,799)
Income taxes paid .......................................... (242) 0
--------------------
Net cash provided by operating activities .................. 1,321 1,418
--------------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from sales and maturities of investment securities 29,901 15,781
Purchase of investment securities .......................... (27,597) (12,786)
Net increase in loans made to customers .................... (5,292) (10,565)
Capital expenditures ....................................... (696) 44
Net cash used in investing activities ...................... (3,684) (7,526)
--------------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Net increase in deposits ................................... 4,642 11,458
Net increase (decrease) in federal funds purchased
and securities sold under agreements to repurchase .... (5,179) 7,674
Other ...................................................... 57 65
--------------------
Net cash provided by (used in) financing activities ........ (480) 19,197
--------------------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS ...................................... (2,843) 13,089
CASH AND CASH EQUIVALENTS
AT JANUARY 1 .......................................... 49,573 22,216
--------------------
CASH AND CASH EQUIVALENTS
AT MARCH 31 ........................................... $ 46,730 $ 35,305
====================
RECONCILIATION OF NET INCOME TO NET
CASH PROVIDED BY OPERATING ACTIVITIES:
Net income ................................................. $ 1,222 $ 939
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization of property and equipment 173 163
Amortization of investment security premiums and
accretion of discounts ............................ 17 (71)
Provision for loan losses ............................. 0 95
Deferred loan fees .................................... 45 (83)
Loss (gain) on sale of investment securities .......... (207) 17
Increase in other assets .............................. (17) (225)
Increase in other liabilities ......................... 88 583
--------------------
NET CASH PROVIDED BY OPERATING ACTIVITIES .................. $ 1,321 $ 1,418
====================
SUPPLEMENTAL SCHEDULE OF NON-CASH
INVESTING AND FINANCING ACTIVITIES:
Issuance of Common Stock for Stock Dividend ................ $ 24 $ 0
====================
Conversion of Loans to Other Real Estate Owned ............. $ 766 $ 0
====================
Issuance of Common Stock For Stock Split ................... $ 0 $ 40
====================
The accompanying notes are an integral part of these statements.
AMERICAN BANCORP OF NEVADA AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
MARCH 31, 1996
(Unaudited)
NOTE A - PRINCIPLES OF CONSOLIDATION
The condensed consolidated financial statements include the parent
holding company, American Bancorp of Nevada, ("Company"), and its
wholly owned subsidiaries, American Bank of Commerce ("Bank"), AmBank
Mortgage Company ("Mortgage Company") and AmBank Financial Company
("Finance Company"). Material intercompany balances and transactions
have been eliminated.
NOTE B - BASIS OF PRESENTATION
In the opinion of management, all adjustments (consisting only of
normal recurring accruals) considered necessary for a fair presentation
have been reflected in the financial statements. The results of
operations for the quarter ended March 31, 1996, are not necessarily
indicative of the results to be expected for the full year.
NOTE C - INCOME PER SHARE
Net Income per common share is based upon the weighted average number
of common and common equivalent shares outstanding, 3,772,406 and
3,701,330 for March 31, 1996 and 1995, respectively.
The weighted average number of common shares, common shares outstanding
and the earnings per share have been adjusted to reflect a 15% stock
dividend declared on March 18, 1996 to shareholders of record on April
2, 1996.
NOTE D - ACCOUNTING PRONOUNCEMENTS
Effective January 1, 1996, the Company adopted FASB Statement No. 121,
Accounting for the Impairment of Long-Lived Assets and for Long-Lived
Assets to be Disposed of. Statement No. 121 establishes accounting
standards for the impairment of long-lived assets, certain identifiable
intangibles, and goodwill related to those assets to be held and used
and for long-lived assets and certain identifiable intangibles to be
disposed of. There was no material effect on the consolidated financial
statements relating to this adoption.
Effective January 1, 1996, the Company adopted FASB Statement No. 123,
Accounting for Stock-Based Compensation. Statement No. 123 establishes
financial accounting and reporting standards for stock-based employee
compensation plans, such as stock options and stock purchase plans. The
statement generally suggests but does not require stock-based
compensation transactions to be accounted for based on the fair value
of the consideration received or the fair value of the equity
instruments issued, whichever is more reliably measurable. Companies
that do not elect to change their accounting for stock-based
compensation are required to disclose the effect on net income and
earnings per share as if the accounting provisions of Statement No. 123
were applied. The Company has decided not to adopt the accounting
provisions of this statement.
ITEM II
AMERICAN BANCORP OF NEVADA AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
The following is management's discussion and analysis of certain significant
factors which have affected the Company's financial position and operating
results during the period in the accompanying condensed consolidated financial
statements.
For the Three Months Ended March 31, 1996
Asset Growth
Total assets increased $451,000 or .16% during the first three months of 1996.
The primary element of this growth was a $4,482,000 or 4.81% increase in net
loans. Additionally, premises and equipment and other assets increased
$1,502,000 or 11.31% during the first three months of 1996. These increases were
offset by decreases in available-for-sale securities of $2,690,000 or 2.23% and
in cash and cash equivalents of $2,843,000 or 5.73%. Deposits increased
$4,642,000 or 2.19% during the first three months of 1996 while securities sold
under agreements to repurchase decreased $5,179,000 or 14.09%. The Company's
loan base continues to increase as a result of the Bank's business development
efforts, successful operation, increased recognition throughout the business
community and the overall strength of the Las Vegas economy.
Interest Income
Total interest income increased $409,000 or 9.37%, in the first quarter of 1996
as compared to the first quarter of 1995. It is anticipated that interest income
will continue to increase due to the growth in the Company's investment and loan
portfolios.
Interest and Fees on Loans: Interest and fee income increased $143,000 or 5.46%,
during the first quarter of 1996 as compared to the same period of 1995. There
was an increase in the average loan volume of $11,059,000 to $92,192,000. The
yield decreased from 12.91% on 1995 to 11.98% in 1996, a net decrease of .93%.
The interest differential resulting from the volume and rate variance is
$357,000 and ($214,000), respectively.
Interest on Investment Securities: The Company continues to invest its excess
funds in interest bearing securities. Interest on securities increased $237,000
or 14.27%, in the first quarter of 1996 as compared to the same period in 1995.
This was the result of an increase of $16,114,000 in average volume of
investments to $129,879,000 and an increase in yield from 5.84% to 5.85%. The
tax-equivalent yield increased from 6.14% to 6.15%. The Bank's current
investment strategy is to maintain an investment portfolio with rather short
maturities. At this time, the relative flatness of the yield curve does not
warrant increased risk or extending the overall maturity of the portfolio.
Management continually monitors these and other factors when evaluating
investment strategies and asset liability management.
Interest on Federal Funds Sold: Interest earned on federal funds sold increased
$29,000 or 33.72%, during the first three months of 1996 as compared to the
first three months of 1995. This increase is primarily attributable to an
increase in the average balance of $2,764,000 to $8,783,000. The average yield
decreased from 5.72% to 5.24%. Management's goal is to maintain a level of
Federal Funds that will enable the Bank to fund increases in loan demand and to
meet depositors' needs.
Interest Expense
Total interest expense increased $189,000 or 15.05%, during the first three
months of 1996 as compared to the first three months of 1995. Interest on
deposits did not fluctuate significantly from the first three months of 1995.
Interest on securities sold under agreements to repurchase increased $189,000 or
112.5% as the average volume increased $21,033,000 to $37,876,000 offset by a
decrease in the average interest rate from 3.99% to 3.77%. Management believes
that the average volume of deposits will increase during 1996.
Interest Rate Risk
Management attempts to protect earnings from wide shifts in interest rates by
employing the following strategies:
Loans: Approximately 93% of the Bank's loan portfolio is written on an
adjustable basis that floats with the prime rate. Thus, approximately
$92,000,000 reprices immediately upon a change in base.
Investments: The majority of the investment portfolio of the Bank is of a fixed
rate nature. This enables Management to provide an underlying level of income
irrespective of changes in rates. Additionally, the average life of the
portfolio is approximately 1.98 years. This strategy of maintaining short
maturities provides maximum flexibility in dealing with fluctuating interest
rates.
Deposits: Management discourages use of long term Certificates of Deposit by
consistently paying at or below market rates and not offering greater than one
year maturities. However, an attempt is currently underway to recapture some of
the jumbo short term Certificates of Deposit market. Offering rates for
Certificates of Deposit over $100,000 and less than one year maturity are
reviewed weekly for adjustments. At March 31, 1996, approximately 54% of time
deposits had a maturity of three months or less.
The above factors, taken into consideration together with the fact that the
Bank's non-interest bearing customer deposits are approximately 44.4% of total
deposits, provides management the opportunity to maintain favorable net interest
margins under most normal interest rate scenarios.
Loans
The composition of the Company's loan portfolio is as follows:
March 31 December 31
1996 1995
----------------------
Real Estate Loans:
Construction ......................... $16,894 $15,114
Residential .......................... 4,456 10,643
------------------
Commercial ........................... 39,924 34,627
------------------
Total Real Estate Loans ....................... 61,274 60,384
Commercial, financial and industrial loans .... 29,041 24,876
Commercial receivables financing .............. 2,521 2,397
Loans to individuals .......................... 6,689 7,340
Less unearned net loan fees ................... 555 510
------------------
Total Loans ................................... $98,970 $94,487
==================
Maturities and Sensitivity of Loans to Changes in Interest Rates
The following table shows the balances of commercial, financial and industrial
loans and real estate - construction loans outstanding as of March 31, 1996 by
maturities, based on remaining scheduled repayments of principal. Also shown are
the balance of loans due after one year, classified according to sensitivity to
changes in interest rates.
MATURITY
One Year One Through After
or Less Five Years Five Years Total
--------------------------------------------
Commercial, Financial
and Industrial ............ $14,117 $12,569 $ 2,355 $29,041
Real Estate-Construction ....... 16,894 0 0 16,894
-------------------------------------------
Total .......................... $31,011 $12,569 $ 2,355 $45,935
===========================================
The maturity of certain loans may vary due to the Bank's rollover policy. The
Bank will consider extending the maturity of a loan upon receipt of current
financial information and evaluation of the loan performance, the financial
performance of the business, and overall economic conditions. Loans with
maturities so affected have been revised as appropriate in the above table.
INTEREST SENSITIVITY
The following table represents the total amount of commercial, financial and
industrial loans and real estate-construction loans due after one year which (a)
have predetermined interest rates and (b) have floating or adjustable interest
rates.
Loans Due After One Year 1996
- ------------------------ -------
Fixed or Predetermined Rate .......... $ 617
Floating or Adjustable Rate .......... 14,307
-------
Total ................................ $14,924
=======
Provision for Loan Losses
There was no provision for loan losses made during the first quarter of 1996 as
compared to $95,000 during the first quarter of 1995. The allowance for loan
losses stands at 1.26% of total loans at March 31, 1996 as compared to .94% at
March 31, 1995. Management believes the current allowance is adequate and no
further provision was necessary during the current quarter.
Net charged off loans and leases were approximately ($1,000) and $6,000 for the
quarters ended March 31, 1996 and 1995 respectively.
At March 31, 1996, one loan totaling approximately $41,000 was accounted for on
a non-accrual basis. Additionally, one loan totaling approximately $245,000 was
contractually past due 90 days or more as to principal or interest. No loans
were accounted for as "troubled debt restructurings" as defined in SFAS No. 15.
Loans are placed on non-accrual status when they go over 90 days delinquent, or
when circumstances indicate that timely collection of interest is doubtful.
Loans over 90 days delinquent may be left on accrual status if a repayment plan
has been negotiated and it appears likely that all interest will be paid.
The Company had approximately $766,000 in other real estate owned ("REO") at
March 31, 1996 which was acquired through foreclosure. The original loan was
made for the purpose of construction of four single family residences for
resale. The units were approximately 90-95% complete at the time of foreclosure.
The Company has contracted to complete construction prior to listing them for
resale on the retail market. Appraisal values are approximately $260,000 per
unit representing a loan-to-value ratio of approximately 73%. Due to the
favorable location of the units, and the current strong market for homes in this
price range, the Company fully expects to recover the remaining principal
balance as well as the foreclosure and post-foreclosure expenses.
The Company has no loans at March 31, 1996, which should be classified as
impaired loans in accordance with FASB Statement No. 114 as amended by FASB
Statement No. 118.
As of March 31, 1996, there are no loans outstanding, excluding those identified
above, which causes management to have serious doubts as to the ability of the
borrower to comply with the loan repayment terms.
Management reviews portfolio concentration levels on a regular basis and
appraisal reviews are performed to support the values at which loans are carried
in the portfolio. Construction lending is generally focused on entry level and
first move-up homes. Lending for larger, speculative homes is tightly limited to
financially sound borrowers. Commercial real estate lending is generally limited
to owner-occupied properties. Management reviews the loan loss analysis on a
quarterly basis. A percentage of the allowance is allocated to pass credits,
substandard, doubtful, loss and accounts receivable factoring. Management
believes the current allowance of $1,244,000 is adequate and there is sufficient
unallocated allowance to handle unexpected problems within the portfolio.
The table below details changes in the allowance for loan losses:
Quarter Ended March 31,
1996 1995
------------------------
Balance, beginning ................................. $1,243,000 $ 727,000
Provision charged to operating expense .... 0 95,000
Recoveries of amounts charged off ......... 1,000 4,000
Less amounts charged off .................. 0 10,000
------------------------
Balance, ending .................................... $1,244,000 $ 816,000
========================
The schedule below shows the major categories of loan charge-offs and recoveries
for the quarters ended March 31, 1996 and 1995:
NET CHARGE-OFFS 1996 1995
- --------------- ----------------------
Charge-Offs:
Real estate loans
Construction ............................. $ 0 $ 0
Residential .............................. 0 0
Commercial ............................... 0 0
Commercial, financial and industrial ......... 0 10,000
Commercial receivables financing ............. 0 0
Loans to individuals ......................... 0 0
----------------------
Total ........................................ 0 10,000
---------------------
Less Recoveries:
Real estate loans
Construction ............................. $ 0 $ 0
Residential .............................. 0 0
Commercial ............................... 0 0
Commercial, financial and industrial ......... 1,000 2,000
Commercial receivables financing ............. 0 0
Loans to individuals ......................... 0 2,000
----------------------
Total ........................................ 1,000 4,000
----------------------
Net Charge-Offs ................................... ($1,000) $ 6,000
======================
The table below details the allocation by loan type of the allowance for loan
losses at March 31, 1996:
Amount Percentage
---------------------------
Real estate loans
Construction ............................... $ 200,000 16.08%
Residential ................................ 139,000 11.17%
Commercial ................................. 453,000 36.41%
Commercial, financial and industrial ............ 325,000 26.13%
Commercial receivables financing ................ 31,000 2.49%
Loans to individuals ............................ 96,000 7.72%
---------------------------
Total ........................................... $1,244,000 100.00%
===========================
Non-Interest Income
Total non-interest income for the first three months is 1996 increased $186,000
or 53.76%, over the same period of 1995. This increase is primarily due to a
gain recognized on the sale of available-for-sale securities.
Non-Interest Expense
Total non-interest expense increased $114,000 or 5.57%, during the first quarter
of 1996 as compared to the first quarter of 1995. This increase is attributable
to increased salaries, wages and employee benefits and professional fees, offset
by a decrease in F.D.I.C. banking assessments.
Liquidity
Management of the Company strives to obtain the highest possible earnings while
maintaining a sound liquidity position. The Company's primary sources of
liquidity are its investment portfolio and federal funds sold. The Company's
investment portfolio had an average balance of approximately $129,879,000 during
the quarter ended March 31, 1996 and an average life of approximately 1.98
years. Federal funds sold maintained an average balance of approximately
$8,783,000 during the quarter ended March 31, 1996. The Company's liquidity
position is further enhanced by its core deposits which represent approximately
85% of total deposits at March 31, 1996. The Bank avoids the use of highly
sensitive short-term funds such as brokered deposits and believes its deposits
represent funding sources with safety in respect to both liquidity and earnings.
The Company continues to meet the cash flow requirements of customers who are
depositors desiring to withdraw funds and of borrowers requiring assurance that
sufficient funds will be available to meet their credit needs. The measures of
solid liquidity practices such as Total Deposits to Total Assets and Loans to
Deposits are monitored constantly for any adverse trends.
Historically, the Bank's loan to deposit ratio has been low when compared to
industry norms and, conversely, its liquidity ratio has been high. At March 31,
1996, the net loan to deposit ratio was approximately 45.21%. The liquidity
ratio, which is comprised of cash, federal funds sold and unpledged securities
as a percent of total demand deposits stood at approximately 53.38% at March 31,
1996. Management continuously monitors outstanding loan commitments and letters
of credit for funding needs. At March 31, 1996, outstanding loan commitments and
letters of credit were approximately $46,070,000 and $1,837,000, respectively.
Cash flow from operations remains positive primarily due to favorable interest
rate yields and continued growth in the loan and investment portfolios.
Management expects this trend to continue. Cash flows from investing activities
was negative for the quarter ended March 31, 1996 primarily due to an increase
in loans to customers which was partially offset by the net proceeds from
securities transactions. Capital expenditures of approximately $696,000 were
made during the quarter ended March 31, 1996 as the Company continues its
facility and branch expansion activities (see discussion of construction
projects under Capital Resources). Cash flows from financing activities was
negative for the quarter ended March 31, 1996 as the increase in deposits of
approximately $4,642,000 was offset by a decrease in securities sold under
agreements to repurchase of approximately $5,179,000.
Capital Resources
On March 18, 1996, the Board of Directors declared a 15% stock dividend to be
issued on April 9, 1996 to shareholders of record on April 2, 1996. Stock
dividends have no effect on total capital. Stockholders' equity (exclusive of
the net unrealized gain/loss of securities available for sale) as a percentage
of total assets was approximately 9.99% at March 31, 1996 as compared to 9.62%
at December 31, 1995.
As of March 31, 1996, the Company is continuing construction on a two-story
17,000 square foot office complex located adjacent to its corporate headquarters
site at Spring Mountain Road and Arville. The building offers approximately
13,000 square feet of class "A" office space. Additionally, construction
continues on the new branch location located in the industrial area of North Las
Vegas. Management anticipates to open the branch in the third quarter of 1996.
In addition, Management is exploring the possibility of opening another branch
office in 1996. This would make a total of six branches in the Las Vegas area.
Construction on these facilities is funded by cash flow from operations. The
impact on capital is not significant to date and is not expected to impede
operations.
At March 31, 1995, the Bank's Tier 1 Core Capital to risk weighted assets was
16.25%, Total Capital to risk weighted assets was 17.01% and the leverage ratio
was 9.78% , all above the current minimum guidelines of 4.0%, 8.0% and 4.0%,
respectively, as established and defined by regulatory authorities.
In addition, the Federal Deposit Insurance Corporation Improvement Act of 1991
(FDICIA) defined five levels of capital for financial institutions:
Well-capitalized, Adequately capitalized, Undercapitalized, Significantly
undercapitalized and Critically undercapitalized. A bank falls into one of these
levels based on its risk-based ratio and leverage ratio. At March 31, 1996, the
Bank falls in the Well-capitalized category.
PART II - OTHER INFORMATION
SIGNATURES
Pursuant to the requirement of the Securities and Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
AMERICAN BANCORP OF NEVADA
DATED: 5/3/96 /s/ James V. Bradham
-------------------------------------
James V. Bradham
President and Chief Executive Officer
DATED: 5/3/96 /s/ Patricia L. Kirkwood
-------------------------------------
Patricia L. Kirkwood
Executive Vice President and Cashier
-13-