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 June 30, 1998 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
Class of Common Stock Number of Shares Outstanding
as of July 24, 1998
$0.50 par value 1,417,255
INDEX TO FORM 10-Q
Part 1
Item 1 Consolidated Interim Financial Statements (Unaudited)
Consolidated Balance Sheets at
June 30, 1998 and December 31, 1997 1
Consolidated Statements of Income for the Three
Months ended June 30, 1998 and 1997 2
Consolidated Statements of Income for the Six
Months ended June 30, 1998 and 1997 3
Consolidated Statements of Cash Flows for the Six
Months ended June 30, 1998 and 1997 4-5
Notes to Consolidated Interim Financial Statements 6-8
Item 2 Management's Discussion and Analysis of Financial
Condition and Results of Operations 9-14
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 14
Item 5 Other Information NONE
Item 6 Exhibits and Reports on Form 8-K NONE
Item 7 Signatures 14
Jeffersonville Bancorp and Subsidiary
Consolidated Balance Sheets
June 30 , December 31,
1998 1997
----------------- ------------------
(Unaudited)
ASSETS
Cash and due from banks .............................................. $ 6,290,000 $ 5,563,000
Federal funds sold .................................................... 4,700,000 1,600,000
--------- ---------
CASH AND CASH EQUIVALENTS ..................................... 10,990,000 7,163,000
Securities available for sale, at fair value .......................... 75,502,000 70,793,000
Investment securities, estimated fair value of $3,621,000
in 1998 and $3,932,000 in 1997 ................................. 3,517,000 3,738,000
Loans, less allowance for loan losses of $2,091,000
in 1998 and $1,568,000 in 1997 ................................... 127,584,000 125,793,000
Accrued interest receivable ........................................... 1,371,000 1,291,000
Premises and equipment, net ........................................... 2,531,000 2,609,000
Federal Home Loan Bank stock .......................................... 825,000 753,000
Other real estate owned ............................................... 300,000 301,000
Cash surrender value of bank-owned life insurance ..................... 6,033,000 --
Other assets .......................................................... 1,193,000 1,218,000
--------- ---------
TOTAL ASSETS ................................................ $ 229,846,000 $ 213,659,000
============= =============
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Deposits:
Demand deposits (non-interest bearing) ....................... $ 27,097,000 $ 23,545,000
NOW and super NOW deposits .................................... 29,765,000 27,973,000
Savings and insured money market deposits ..................... 53,234,000 54,513,000
Time deposits ................................................. 78,946,000 73,129,000
---------- ----------
TOTAL DEPOSITS ............................................. 189,042,000 179,160,000
Federal Home Loan Bank advances .................................. 15,002,000 10,000,000
Short-term debt .................................................. 471,000 404,000
Accrued expenses and other liabilities ........................... 2,557,000 1,919,000
--------- ---------
TOTAL LIABILITIES .......................................... 207,072,000 191,483,000
----------- -----------
Series A preferred stock, no par value:
2,000,000 shares authorized, none issued ................. -- --
Common stock, $0.50 par value; 2,225,000 shares
authorized ; 1,479,636 shares and 1,234,711 shares
issued at June 30, 1998 and December 31,
1997, respectively ........................................ 740,000 617,000
Paid-in capital ............................................... 5,957,000 446,000
Treasury stock; at cost; 62,381 shares and 51,965 shares held
at June 30, 1998 and December 31, 1997, respectively ..... (206,000) (206,000)
Retained earnings ............................................. 15,805,000 20,766,000
Accumulated other comprehensive income ........................ 478,000 553,000
---------- ----------
TOTAL STOCKHOLDERS' EQUITY ................................ 22,774,000 22,176,000
---------- ----------
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY .................................................... $ 229,846,000 $ 213,659,000
============= =============
See accompanying notes to unaudited consolidated interim financial statements.
1
Jeffersonville Bancorp and Subsidiary
Consolidated Statements of Income
(Unaudited)
For the Three Months
Ended June 30,
1998 1997
--------- ---------
INTEREST INCOME
Loan interest and fees ....................... $ 3,016,000 $ 2,707,000
Securities:
Taxable ................................. 907,000 753,000
Non-taxable ............................. 292,000 410,000
Federal funds sold ........................... 54,000 11,000
--------- ---------
TOTAL INTEREST INCOME ........................ 4,269,000 3,881,000
--------- ---------
INTEREST EXPENSE
Deposits ..................................... 1,710,000 1,654,000
Federal Home Loan Bank advances .............. 192,000 71,000
Other ........................................ 8,000 23,000
--------- ---------
TOTAL INTEREST EXPENSE ....................... 1,910,000 1,748,000
--------- ---------
NET INTEREST INCOME .......................... 2,359,000 2,133,000
Provision for loan losses .................... 125,000 350,000
--------- ---------
NET INTEREST INCOME AFTER
PROVISION FOR LOAN LOSSES ............... 2,234,000 1,783,000
--------- ---------
NON-INTEREST INCOME
Service charges .............................. 210,000 188,000
Net security gains ........................... 1,000 57,000
Other non-interest income .................... 194,000 164,000
--------- ---------
405,000 409,000
--------- ---------
NON-INTEREST EXPENSES
Salaries and wages ........................... 699,000 654,000
Employee benefits ............................ 256,000 231,000
Occupancy and equipment expenses ............. 266,000 294,000
Other real estate owned expenses (income), net 27,000 (1,000)
Other non-interest expenses .................. 473,000 453,000
--------- ---------
1,721,000 1,631,000
--------- ---------
Income before income taxes ................... 918,000 561,000
Income taxes ................................. (284,000) (90,000)
-------- -------
NET INCOME ................................... $ 634,000 $ 471,000
=========== ===========
Basic earnings per common share (1) $ 0.45 $ 0.33
=========== ===========
Average common shares outstanding (1) 1,418,825 1,419,277
=========== ===========
(1) Share and per share data has been adjusted for the effect of the 20% stock
dividend distributed in February 1998.
See accompanying notes to unaudited consolidated interim financial statements.
2
Jeffersonville Bancorp and Subsidiary
Consolidated Statements of Income
(Unaudited)
For the Six Months
Ended June 30,
1998 1997
-------------------- -------------------
INTEREST INCOME
Loan interest and fees .............. $ 5,933,000 $ 5,390,000
Securities:
Taxable ........................ 1,750,000 1,393,000
Non-taxable .................... 587,000 808,000
Federal funds sold .................. 101,000 39,000
--------- ---------
TOTAL INTEREST INCOME ............... 8,371,000 7,630,000
--------- ---------
INTEREST EXPENSE
Deposits ............................ 3,359,000 3,235,000
Federal Home Loan Bank advances ..... 328,000 94,000
Other ............................... 16,000 29,000
--------- ---------
TOTAL INTEREST EXPENSE .............. 3,703,000 3,358,000
--------- ---------
NET INTEREST INCOME ................. 4,668,000 4,272,000
Provision for loan losses ........... 275,000 440,000
--------- ---------
NET INTEREST INCOME AFTER
PROVISION FOR LOAN LOSSES ...... 4,393,000 3,832,000
--------- ---------
NON-INTEREST INCOME
Service charges ..................... 405,000 359,000
Net security gains .................. 12,000 53,000
Other non-interest income ........... 290,000 262,000
--------- ---------
707,000 674,000
--------- ---------
Salaries and wages .................. 1,414,000 1,330,000
Employee benefits ................... 510,000 428,000
Occupancy and equipment expenses .... 535,000 585,000
Other real estate owned expenses, net 122,000 102,000
Other non-interest expenses ......... 914,000 878,000
--------- ---------
3,495,000 3,323,000
--------- ---------
Income before income taxes .......... 1,605,000 1,183,000
Income taxes ........................ (461,000) (211,000
--------- ---------
NET INCOME $ 1,144,000 $ 972,000
============= ============
Basic earnings per common share (1) $ 0.81 $ 0.68
============= ============
Average common shares outstanding (1) 1,419,040 1,419,277
============= ============
(1) Share and per share data has been adjusted for the effect of the 20%
stock dividend distributed in February 1998.
See accompanying notes to unaudited consolidated interim financial statements.
3
Jeffersonville Bancorp and Subsidiary
Consolidated Statements of Cash Flows
(Unaudited)
For the six months
ended June 30,
1998 1997
OPERATING ACTIVITIES
Net income .............................................. $ 1,144,000 $ 972,000
Adjustments to reconcile net income
to net cash provided by operating activities:
Provision for loan losses .......................... 275,000 440,000
Write down of other real estate owned ............. 83,000 79,000
Depreciation and amortization ...................... 243,000 227,000
Net security gains ................................. (12,000) (53,000)
Increase in accrued interest receivable ............ (80,000) (68,000)
Decrease in other assets ........................... 25,000 23,000
Increase in accrued expenses
and other liabilities ......................... 690,000 165,000
Increase in cash value of bank
owned life insurance .......................... (25,000) --
------------ ------------
NET CASH PROVIDED BY
OPERATING ACTIVITIES .............................. 2,343,000 1,785,000
------------ ------------
INVESTING ACTIVITIES Proceeds from maturities and calls :
Securities available for sale ........................ 16,146,000 4,630,000
Investment securities ................................ 439,000 484,000
Purchases:
Securities available for sale ......................... (27,675,000) (13,561,000)
Investment securities ................................. (218,000) (979,000)
Proceeds from sales of securities available for sale .... 6,705,000 3,654,000
Dispursements for loan originations,net of
principal collections ................................ (2,446,000) (6,583,000)
Purchases of Federal Home Loan Bank stock ............... (72,000) (36,000)
Net purchases of premises and equipment ................. (165,000) (291,000)
Purchase of bank owned life insurance ................... (6,008,000) --
Proceeds from sale of other real estate owned ........... 298,000 448,000
------------ ------------
NET CASH USED IN INVESTING ACTIVITIES ................... (12,996,000) (12,234,000)
------------ ------------
FINANCING ACTIVITIES
Net increase in deposits ................................ 9,882,000 4,445,000
Net increase in short-term debt ......................... 67,000 3,496,000
Dividends paid .......................................... (425,000) (378,000)
Purchase and retirement of common stock ................. (46,000) (1,000)
Proceeds from Federal Home Loan Bank advances ........... 5,002,000 5,025,000
------------ ------------
NET CASH PROVIDED BY
FINANCING ACTIVITIES ............................... 14,480,000 12,587,000
------------ ------------
NET INCREASE IN CASH AND
CASH EQUIVALENTS ................................... 3,827,000 2,138,000
Cash and cash equivalents at beginning of period ........ 7,163,000 6,023,000
------------ ------------
Cash and cash equivalents at end of period .............. $ 10,990,000 $ 8,161,000
============ ============
4
continued
Jeffersonville Bancorp and Subsidiary
Consolidated Statements of Cash Flows,Continued
(Unaudited)
For the six months
ended June 30,
1998 1997
SUPPLEMENTAL INFORMATION Cash paid for:
Interest $ 3,671,000 $ 3,383,000
=====================================
Income taxes $ 425,000 $ 145,000
=====================================
Transfers of loans to other real estate owned $ 380,000 $ 162,000
=====================================
Change in net unrealized gain on
securities available for sale,net of tax $ (75,000) $ (231,000)
=====================================
Deferred tax effect of change in net unrealized
gain on securities available for sale $ 52,000 $ 151,000
=====================================
See accompanying notes to unaudited consolidated interim financial statements
5
JEFFERSONVILLE BANCORP
NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS
June 30, 1998
(Unaudited)
A. Financial Statement Presentation
In the opinion of Management of Jeffersonville Bancorp, the
accompanying unaudited consolidated interim financial statements
contain all adjustments necessary to present the financial
position as of June 30, 1998 and December 31, 1997, the results of
operations for the three and six month periods ended June 30, 1998
and 1997, and cash flows for the six month periods ended June 30,
1998 and 1997. 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 1997
Annual Report.
B. Stock Dividend
On January 14, 1998, the Company announced a 20% stock
dividend payable on February 10, 1998 to common stockholders of
record as of January 27, 1998. Under the terms of the dividend,
stockholders received a dividend of one share of common stock for
every five shares owned as of the record date, plus cash in lieu
of any fractional shares. A total of 246,406 common shares were
issued in connection with the stock dividend. The fair value of
the shares issued ($5.7 million) was charged to retained earnings,
with a corresponding combined increase in common stock and paid-in
capital
6
C. Comprehensive Income
On January 1, 1998, the Company adopted the provisions of
Statement of Financial Accounting Sandards (SFAS) No. 130, "Reporting
Comprehensive Income". This Statement establishes standards for
reporting and display of comprehensive income and its components.
Comprehensive income includes the reported net income of a company
adjusted for items that are currently accounted for as direct entries
to equity, such as unrealized gains and losses on securities
available for sale, foreign currency items and minimum pension
liability adjustments. For the Company, comprehensive income
currently represents net income plus the net change during the period
in net unrealized gains or losses on securities available for sale.
The Company's accumulated other comprehensive income at June 30, 1998
and December 31, 1997 represents the after-tax net unrealized gain on
securities available for sale.
Comprehensive income for the three month periods ended June
30, 1998 and 1997 was $612,000 and $163,000, respectively.
Comprehensive income for the six month periods ended June 30, 1998
and 1997 was $1,069,000 and $741,000, respectively. The following
summarizes the components of other comprehensive income:
Six Months Ended June 30, 1998:
-------------------------------
Net unrealized holding losses arising
during periods, net of tax
(pre-tax amount of $125,000) $ (75,000)
Reclassification adjustment for net gain
realized in net income during the period,
net of tax (pre-tax amount of $(12,000) (7,000)
------
Other comprehensive income $ (82,000)
=========
Six Months Ended June 30, 1997:
-------------------------------
Net unrealized holding losses arising
during periods, net of tax
(pre-tax amount of $385,000) $ (231,000)
Reclassification adjustment for net gain
realized in net income during the period,
net of tax (pre-tax amount of $(12,000) (7,000)
------
Other comprehensive income $(263,000)
=========
Net unrealized holding losses arising during the period, net of tax
(pre-tax amount of $385,000) $ (231,000) Reclassification
adjustment for net gains realized in net income during the
period, net of tax (pre-tax amount of $53,000) (32,000) Other
comprehensive income $ (263,000)
7
D New Accounting
Pronouncement
In June1998, the FASB issued SFAS No. 133, "Accounting for Derivative
Instruments and Hedging Activities," which establishes accounting and
reporting standards for derivative instruments, including certain
derivative instruments embedded in other contracts, and for hedging
activities. This Statement is effective for all fiscal quarters of
fiscal years beginning after June 15, 1999. Management is currently
evaluating the impact of this Statement on the Company's consolidated
financial statements.
8
Item 2: Management's Discussion and Analysis of Financial Condition and
Results of Operations
A. Overview - Financial Condition
During the period from December 31, 1997 to June 30, 1998,
total assets increased $16,187,000 or 7.58%. Federal funds sold
increased $3,100,000 as increased deposit funds were available
after loan demand was satisfied. The funds were deployed in
federal funds sold to enhance liquidity, while receiving a
satisfactory return. Securities available for sale increased
$4,709,000 or 6.65% during the six month period. During the second
quarter, purchases of available for sale securities were
$6,033,000, including $5,000,000 purchased in a leverage
transaction funded with Federal Home Loan Bank advances. Net loans
increased from $125,793,000 at year end 1997 to $127,584,000 at
June 30, 1998, an increase of $1,791,000 or 1.42%. Net loans
decreased $183,000 from March 31, 1998 to June 30, 1998,
reflecting limited loan demand. Loan demand was unseasonally low
in all areas of lending for the second quarter due to increased
competition from other lenders.
Deposits increased from $179,160,000 at December 31, 1997 to
$189,042,000 at June 30, 1998, an increase of $9,882,000 or 5.52%.
Deposits only grew $1,283,000, or 0.68%,6 during the second
quarter which can be attributed to increased competition from
other banks and mutual funds. Growth occurred in time deposits as
funds flowed from savings accounts to benefit from higher rates.
The 18 month Escalator, an account that allows one rate
modification during its term, continues to be a popular option.
Demand deposits increased from $23,545,000 at December 31, 1997 to
$27,097,000 at June 30, 1998, an increase of $3,552,000 or 15.09%.
Inflow of these lower cost deposits is important to offset the
cost of the higher priced funds.
Total stockholders' equity of $22,176,000 at December 31, 1997
increased $598,000 or 2.70% to $22,774,000 at June 30, 1998. This
increase was the result of net income of $1,144,000, less a
decrease of $75,000 in accumulated other comprehensive income,
dividend payments of $425,000, and common shares purchased and
retired for $46,000.
9
B. 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 $275,000 for the six months ended June 30, 1998
compared to $440,000 for the six months ended June 30, 1997. Total
charge offs for the 1998 six month period were $162,000 compared
to $633,000 for the same period in the prior year, while
recoveries increased from $50,000 for the six month period ending
in 1997 to $117,000 for the same period in 1998. The amounts
represent net charge-offs of $45,000 for the first half of 1998
verses $583,000 for the same period in the prior year. Based on
management's analysis of the loan portfolio, management believes
the current level of the allowance is adequate.
Changes in the allowance for loan losses are summarized as follows
for the six month periods ended June 30:
1998 1997
---- ----
Balance at beginning of period $ 1,862,000 $ 1,711,000
Provision for loan losses .... 275,000 440,000
Loans charged off ............ (163,000) (633,000)
Recoveries ................... 117,000 50,000
Balance at end of period ..... $ 2,091,000 $ 1,568,000
=========== ===========
Net charge-offs as a percentage
of average outstanding loans ... 0.04% 0.49%
==== ====
Allowance for loan losses to:
Total loans ............... 1.61% 1.27%
==== ====
Total non-performing loans 65.3% 32.2%
==== ====
10
C. Non Accrual and Past Due Loans
Non-performing loans are summarized as follows at June 30:
1998 1997
---- ----
Non-accrual loans ............ $2,114,000 $3,026,000
Loans past due 90 days or more
and still accruing interest 1,090,000 793,000
Restructured loans ........... 1,045,000
---------- ..........
Total non-performing loans ... $3,204,000 $4,864,000
Non-performing loans as a
percentage of total loans ... 2.47% 3.95%
The effects of non-accrual and restructured loans on interest income
were as follows for the six months ended June 30, 1998:
Interest contractually due at original rates $102,897
Interest income recognized ................. 65,006
Interest income not recognized ............. $ 37,891
As of June 30, 1998 and 1997, the recorded investment in loans
considered to be impaired under SFAS No.114 totaled $527,000 and
$1,387,000, respectively. There was no allowance for loan
impairment under SFAS No.114 at either date, primarily due to
prior charge offs and the adequacy of collateral values on these
loans.
D. Capital
On January 14, 1998, the Company announced a 20% stock
dividend payable on February 10, 1998 to common stockholders of
record as of January 27, 1998. Under the terms of the dividend,
stockholders received a dividend of one share of common stock for
every five shares owned as of the record date, plus cash in lieu
of any fractional shares. A total of 246,406 common shares were
issued in connection with the stock dividend.
In January 1998, the board of directors allocated $1,000,000
for the repurchase and retirement of common stock on the open
market. As of June 30, 1998, 2,000 shares have been repurchased
and retired at a cost of $46,000.
11
Under the Federal Reserve Bank's risk-based capital rules, the
Company's Tier I risk-based capital was 17.2% and total risk-based
capital was 18.5% of risk-weighted assets at June 30, 1998. These
risk-based capital ratios are well above the minimum regulatory
requirements of 4.0% for Tier I capital and 8.0% for total
capital. The Company's leverage ratio (Tier I capital to average
assets) of 10.1% at June 30, 1998 is well above the 4.0% minimum
regulatory requirement.
The following table shows the Company's actual capital
measurements compared to the minimum regulatory requirements at
June 30, 1998.
TIER I CAPITAL
Stockholders' equity, excluding the
after-tax net unrealized
gain on securities available for sale .. $ 22,296,000
TIER II CAPITAL
Allowance for loan losses1 ............. 1,623,000
Total risk-based capital ............... $ 23,919,000
Risk-weighted assets2 .................. $129,797,000
Average assets ......................... $221,497,000
RATIOS
Tier I risk-based capital (minimum 4.0%) 17.2%
Total risk-based capital (minimum 8.0%) 18.5%
Leverage (minimum 4.0%) ................ 10.1%
1 The allowance for loan losses is limited to 1.25% of
risk-weighted assets for the purpose of this calculation. 2
Risk-weighted assets have been reduced for excess allowance for
loan losses excluded from total risk-based
capital
12
E. Results of Operations
Net Income
Net income for the first six months of 1998 was $1,144,000
compared to $972,000 for the same period in 1997. The Company's
annualized return on average assets was 1.03% compared to 0.94% in
the same period last year. The return on average stockholders'
equity was 10.19% and 9.25% for the first six months of 1998 and
1997, respectively.
Interest Income and Expense
Total tax equivalent interest income increased $636,000 or
7.9% in the first six months of 1998 compared to the same period
in 1997. The overall yield on interest earning assets was up 4
basis points from 8.19% for the six months ended June 30, 1997 to
8.23% for the same period in 1998. The increase in interest income
on earning assets was also enhanced by an increase in average
earning assets. The total average balance for earning assets was
$210,297,000 for the six month period ended June 30, 1998 compared
to $195,936,000 for the same six month period in 1997
The overall yield on the loan portfolio increased by 26 basis
points to 9.18% from 8.92% for the first six months of 1998
compared to the same period in 1997. The average yield on real
estate mortgage loans, the major portion of the loan portfolio,
also increased 29 basis points to 8.74% in 1998 from 8.45% for the
1997 six month period. The tax equivalent yield on investment
securities decreased 22 basis points from 7.06% in 1997 to 6.84%
in 1998.
The yield on interest bearing liabilities increased from 4.20%
for the six month period ended June 30, 1997 to 4.34% for the same
period in 1998. The overall net interest margin decreased 5 basis
points from 4.76% in the first six months of 1997 to 4.71% in the
first six months of 1998.
13
Non-Interest Income and Expense
Non-interest income for the first six months of 1998 increased
$33,000 or 4.9% compared to the same period in 1997. Changes in
service charge policies accounted for most of the increase. Income
on bank-owned life insurances policies of $25,000 in 1998 was
offset by a $41,000 decrease in net security gains in 1998 compaed
to last year.
The bank purchased cash value life insurance policies on the
lives of directors and officers. The policies are owned by the
bank and are designed to enhance the benefit structure and
increase non-interest income.
Non-interest expenses were $3,495,000 for the first six months
of 1998 compared to $3,323,000 for the same period in 1997, an
increase of $172,000 or 5.18%. This increase reflects a $166,000
increase in compensation and benefits costs, primarily due to
higher employee benefit costs and salary adjustments for the
existing staff to maintain the Company's competitive position.
Item 4: Submission of Matters to a Vote of Security Holders
On April 28, 1998, the annual meeting of shareholders was
held. The election of Four Class III directors resulted in the
reelection of Douglas A.Heinle,James F. Roche,Frederick W.V.
Schadt,and Gilbert E Weiss to a three year term.
The proposal to ratify the firm of KPMG Peat Marwick LLP as
independent auditors for the fiscal year ending December 31, 1998
was approved.
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: August 12, 1998
/s/
--------------------
K. Dwayne Rhodes
Treasurer and Chief Accounting Officer
14