[FILER]
Form 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the Quarter ended September 30, 1996 Commission File
Number: 0-19212
JEFFERSONVILLE BANCORP
(Exact name of Registrant as specified in its charter)
New York 22-2385448
(State or other jurisdiction of (I.R.S. Employer identification No.)
incorporation or organization)
P. O. Box 398, Jeffersonville, New York 12748
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (914-482-4000)
Indicate by check mark whether the Registrant (1) has filed
all reports required to be filed by Section 13 or 15(d) of
the Securities Exchange Act of 1934 during the proceeding 12
months (or for such shorter period that the Registrant was
required to file such report(s), 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 the latest
practicable date:
Number of Shares Outstanding
Class of Common Stock as of October 27, 1996
$0.50 par value 1,188,378
INDEX TO FORM 10-Q
Page
Part 1
Item 1 Consolidated Interim Financial Statements
(Unaudited)
Consolidated Balance Sheets at
September 30, 1996 and December 31, 1995 1
Consolidated Statements of Income for the Nine
Months ended September 30, 1996 and 1995 2
Consolidated Statements of Income for the
Three Months ended September 30, 1996 and 1995 3
Consolidated Statements of Cash Flows for the Nine
Months ended September 30, 1996 and 1995 4-5
Notes to Consolidated Interim Finan 6
Item 2 Management's Discussion and Analysis of Financial
Condition and Results of Operations 7-9
Part 2
Item 1 Legal Proceedings NONE
Item 2 Changes in Securities NONE
Item 3 Defaults upon Senior Securities NONE
Item 4 Submission of Matters to a Vote of Security Holders NONE
Item 5 Other Information NONE
Item 6 Exhibits and Reports on Form 8-K Exhibit 27
Signature 10
Jeffersonville Bancorp
Consolidated Balance Sheets
September 30, December 31
1996 1996
(Unaudited)
ASSETS
Cash and due from banks $ 7,906,000 $ 5,938,000
Federal funds sold 0 4,100,000
CASH AND CASH EQUIVALENTS 7,906,000 10,038,000
Investment securities available for sale, at fair value 68,665,000 61,614,000
Investment securities held to maturity, fair value $2,815,000
and $1,866,000 in 1996 and 1995 2,758,000 1,782,000
Loans, less allowance for loan losses of $1,612,000 and
$1,629,000 in1996 and 1995 113,918,000 109,288,000
Accrued interest receivable 1,411,000 1,180,000
Investments required by law, stock in Federal
Home Loan Bank 736,000 736,000
Premises and equipment 2,584,000 2,205,000
Other real estate owned 641,000 549,000
Other assets 1,603,000 1,511,000
TOTAL ASSETS $200,222,000 $ 188,903,000
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Deposits:
Demand deposits-non-interest bearing $ 25,281,000 $ 20,879,000
Now and super now deposits 27,423,000 28,457,000
Savings and insured money market deposits 56,292,000 51,563,000
Time deposits 67,377,000 63,285,000
TOTAL DEPOSITS 176,373,000 164,184,000
Short- term debt 521,000 197,000
Long-term debt 815,000 1,700,000
Accrued expenses and other liabilities 1,785,000 1,894,000
TOTAL LIABILITIES 179,494,000 167,975,000
Stockholders' equity:
Common stock; $.50 par value; 2,225,000 shares
authorized; 1,243,236 shares issued and
1,190,336 shares outstanding at September 30,1996,
and 1,284,450 shares issued and 1,231,550
outstanding at December 31, 1995 622,000 642,000
Paid-in capital 605,000 1,450,000
Undivided profits 19,749,000 18,425,000
Net unrealized gain (loss) on securities available for
sale, net of tax (38,000) 621,000
20,938,000 21,138,000
Less: treasury stock, 52,900 shares 210,000 210,000
TOTAL STOCKHOLDERS' EQUITY 20,728,000 20,928,000
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY $200,222,000 $ 188,903,000
See accompanying notes to unaudited consolidated interim financial statements
Jeffersonville Bancorp
Consolidated Statements of Income
For the Nine Months
Ended September 30,
1996 1995
(Unaudited) (Unaudited)
INTEREST INCOME
Loan interest and fees $ 7,803,000 $ 7,557,000
Short-term investments 71,000 144,000
Investment securities:
Taxable 2,051,000 2,183,000
Non-taxable 1,211,000 1,266,000
TOTAL INTEREST INCOME 11,136,000 11,150,000
INTEREST EXPENSE
Deposits 4,552,000 4,613,000
Federal funds purchased and
other short-term debt 43,000 15,000
Long-term debt 71,000 100,000
TOTAL INTEREST EXPENSE 4,666,000 4,728,000
NET INTEREST INCOME 6,470,000 6,422,000
Provision for loan losses (120,000) (100,000)
NET INTEREST INCOME AFTER
PROVISION FOR LOAN
LOSSES 6,350,000 6,322,000
OPERATING INCOME
Service charges 488,000 442,000
Other non-interest income 242,000 224,000
Gains (losses) on investment
securities available for sale, net 11,000 (21,000)
741,000 645,000
OPERATING EXPENSES
Salaries and wages 2,077,000 1,878,000
Employee benefits 631,000 561,000
Occupancy expense of bank premises 696,000 688,000
Other real estate owned expense,net 204,000 83,000
Other operating expense 1,327,000 1,307,000
4,935,000 4,517,000
Income before income taxes 2,156,000 2,450,000
Income taxes (450,000) (634,000)
NET INCOME $ 1,706,000 $ 1,816,000
Net income per share $ 1.42 $ 1.44
Weighted average shares outstanding 1,205,338 1,259,981
See accompanying notes to unaudited consolidated interim financial statements
Jeffersonville Bancorp
Consolidated Statements of Income
For the Three Months
Ended September 30,
1996 1995
(Unaudited) (Unaudited)
INTEREST INCOME
Loan interest and fees $ 2,604,000 $ 2,613,000
Short-term investments 18,000 54,000
Investment securities:
Taxable 691,000 667,000
Non-taxable 414,000 378,000
TOTAL INTEREST INCOME 3,727,000 3,712,000
INTEREST EXPENSE
Deposits 1,541,000 1,557,000
Federal funds purchased and
other short-term debt 6,000 6,000
Long-term debt 26,000 28,000
TOTAL INTEREST EXPENSE 1,573,000 1,591,000
NET INTEREST INCOME 2,154,000 2,121,000
Provision for loan losses (60,000) (60,000)
NET INTEREST INCOME AFTER
PROVISION FOR LOAN
LOSSES 2,094,000 2,061,000
OPERATING INCOME
Service charges 162,000 149,000
Other non-interest income 38,000 63,000
Gains (losses) on investment
securities available for sale, net 11,000 (47,000)
211,000 165,000
OPERATING EXPENSES
Salaries and wages 771,000 680,000
Employee benefits 214,000 137,000
Occupancy expense of bank premises 237,000 237,000
Other real estate owned expense,net (21,000) 10,000
Other operating expense 479,000 377,000
1,680,000 1,441,000
Income before income taxes 625,000 785,000
Income taxes (130,000) (238,000)
NET INCOME $ 495,000 $ 547,000
Net income per share $ 0.42 $ 0.44
Weighted average shares outstanding 1,192,401 1,235,111
See accompanying notes to unaudited consolidated interim financial statements
JEFFERSONVILLE BANCORP
NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS
September 30, 1996
(Unaudited)
Part 1. Financial Statement Presentation
A. In the opinion of Management of Jeffersonville
Bancorp, the accompanying unaudited interim Consolidated
Financial Statements contain all adjustments necessary to
present the financial position as of September 30, 1996
and December 31, 1995, the Results of Operations for the
nine month periods and three month periods ended
September 30, 1996 and 1995, and Cash Flows for the nine
month periods ended September 30, 1996 and 1995. All
adjustments are normal and recurring. The accompanying
unaudited consolidated interim financial statements
should be read in conjunction with Jeffersonville
Bancorp's consolidated year-end financial statements,
including notes thereto, which are included in
Jeffersonville Bancorp's 1995 Annual Report.
B. Earnings per share was calculated for the nine month
periods ended September 30, 1996 and 1995 based on
weighted average shares outstanding of 1,205,338 and
1,259,981, respectively, and for the three month periods
ended September 30, 1996 and 1995 based on weighted
average shares outstanding of 1,192,401 and 1,235,111,
respectively.
Item 2:Management's discussion and analysis of Financial
Conditions and Results of Operations
A. Overview - Financial Conditions
During the period from December 31, 1995 to
September 30, 1996, total assets increased $11,319,000 or
5.99%. Investment securities available for sale
increased $7,051,000 or 11.44%. This increase was
primarily the result of a redeployment of short term
funds in order to improve the yield on these investments.
The funds were invested in tax exempt securities as well
as short to intermediate term taxable securities.
Federal funds sold, a short term investment, was reduced
from $4,100,000 to zero as part of the funds
redeployment. Net loans increased from $109,288,000 at
year end 1995 to $113,918,000 at September 30, 1996, an
increase of $4,630,000 or 4.24%. The new Home Equity
Loan product which was successfully launched during the
first quarter of 1996, accounted for $3,391,000 of the
increase in net loans.
Deposits increased from $164,184,000 at
December 31, 1995 to $176,373,000 at September 30, 1996,
an increase of $12,189,000 or 7.42%. Growth in deposits
occurred in savings and insured money market deposits as
a change in the top tier of the rate structure attracted
large deposits mainly from municipal depositors. Deposit
growth was also favorably affected by the opening of two
new supermarket branches in July 1996.
Total shareholders' equity of $20,928,000 at
December 31, 1995 and $20,728,000 at September 30, 1996
decreased $200,000 or .96%. This decrease was the result
of two factors. First, on January 9, 1996 the Board of
Directors authorized the repurchase and retirement of
50,000 shares of Common Stock at $21.00 per share. As of
September 30, 1996, 41,214 shares have been repurchased
and retired with the resultant reduction in Common Stock
and Paid In Capital of $865,000. Second, the net
unrealized gain/loss on securities available for sale
decreased $659,000 from a $621,000 gain at December 31,
1995 to a $38,000 loss at September 30, 1996.
B. Results of Operations
Net income for the first nine months of 1996
was $1,706,000 compared to $1,816,000 for the same period
in 1995, a decrease of 6.06%. The Company's annualized
return on average assets was 1.15% compared to 1.25% in
the same period last year. The return on average
shareholders' equity was 11.01% and 12.36% for the first
nine months of 1996 and 1995, respectively. Net income
for the three months ended September 30, 1996 was
$495,000 compared to $547,000 for the same period in
1995, a decrease of 9.51%.
Net Interest Income
Tax equivalent interest income was virtually
unchanged in the first nine months of 1996 compared to
the same period in 1995. The yield on investment
securities decreased 12 basis points from 7.34% in 1995
to 7.22% in 1996. While commercial loan and installment
loan rates declined slightly, real estate mortgages
loans, the major portion of the loan portfolio, declined
10 basis points to 8.82% for the nine month period, but
registered an increase of 4 basis points for nine month
period ended September 30, 1996 compensated the six month
period ended June 30, 1996. The overall yield on
interest earning assets was down 12 basis points from
8.53% for the nine months ended September 30, 1995 to
8.41% for the same period in 1996. The decline in the
yield on interest earning assets was offset by an
increase in average earning assets. The average balance
for earning assets was $186,486,000 for the nine month
period ended September 30, 1996 compared to $184,572,000
for the nine monthsame period in 1995.
Interest expense decreased only 2 basis points
over the same period last year to reach 4.11%. The
overall net interest margin decreased 4 basis points from
5.11% in 1995 to 5.07% in 1996. The net interest margin
for the nine month period ended September 30, 1996
compared to the six month period ended June 30, 1996
showed an decrease of 5 basis points from 5.12% to 5.07%.
Provision for Loan Losses
The provision for loan losses reflects
management's assessment of the risk inherent in the loan
portfolio, the general state of the economy and past loan
experience. The provision for loan losses was $120,000
and $100,000 for the nine months ended September 30, 1996
and 1995, respectively. The net charge off for the 1996
nine month period was $137,000 compared to a net recovery
of $40,000 the prior year. Based on management analysis
of the loan portfolio, management believes the current
level of the allowance is adequate.
Operating Income and Expense
Operating income for the first nine months of
1996 increased $96,000 or 14.88% compared to the same
period in 1995.
Operating expenses were at $4,935,000 for the
first nine months of 1996 compared to 4,517,000 for the
same period in 1995, an increase of $418,000 or 9.25%.
This increase was the result of increased salaries and
wages required to staff new branch offices and fund 1996
merit increases, and increased other real estate owned
expense to maintain and liquidate foreclosed properties.
Other operating expense increased 1.5% to reach
$1,327,000 for the nine months ended September 30, 1996.
Increases in ATM Expense and fee expense were offset by a
decrease in FDIC Insurance Premium of $174,000. FDIC
Insurance expense will also be lower in future 1996
accounting periods, because of decreased FDIC assessment
rates.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on
its behalf by the undersigned thereunto duly authorized.
JEFFERSONVILLE BANCORP
Date: 11/8/96
K. Dwayne Rhodes
Treasurer and Chief Accounting Officer