SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
---------------------------
FORM 10-QSB
(Mark One)
[ ] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the quarterly period ended December 31, 2000
-----------------
OR
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the transition period from __________ to __________.
Commission File No. 0-23763
Quitman Bancorp, Inc.
- -----------------------------------------------------------------------------
(Exact name of Small Business Issuer as Specified in Its Charter)
Georgia 58-2365866
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(State or Other Jurisdiction of Incorporation (I.R.S. Employer
or Organization) Identification No.)
602 East Screven Street, Quitman, Georgia 31643
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(Address of Principal Executive Offices)
(912) 263-7538
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Issuer's Telephone Number, Including Area Code
Check whether the issuer (1) filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act during the past 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
------ ------
Number of shares of Common Stock outstanding as of December 31, 2000:
507,262
Transitional Small Business Disclosure Format (check one)
YES NO X
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QUITMAN BANCORP, INC.
Contents
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Page(s)
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PART I - FINANCIAL INFORMATION
Item 1. Financial Statements......................................... 3
Item 2. Management's Discussion and Analysis or Plan of Operation.... 10
PART II - OTHER INFORMATION
Item 1. Legal Proceedings............................................ 14
Item 2. Changes in Securities and Use of Proceeds.................... 14
Item 3. Defaults upon Senior Securities.............................. 14
Item 4. Submission of Matters to a Vote of Security Holders.......... 14
Item 5. Other Information............................................ 14
Item 6. Exhibits and Reports on Form 8-K............................. 14
Signatures............................................................ 15
-2-
PART I. FINANCIAL INFORMATION
QUITMAN BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
----------------------------------------------
ASSETS
-------
DECEMBER 31, SEPTEMBER 30,
2000 2000
------------ -------------
(Unaudited)
Cash and Cash Equivalents:
Cash and amounts due from
depository institutions $ 2,572,697 598,471
Interest-bearing deposits in other bank 52,880 1,064,984
Federal funds sold 800,000 0
----------- -----------
Total Cash and Cash Equivalents 3,425,577 1,663,455
Investment securities:
Available-for-sale 6,097,788 6,546,404
Loans receivable - net of
allowance for loan losses and
deferred origination fees 50,021,866 49,052,004
Office properties and
equipment, at cost, net of
accumulated depreciation 1,455,573 1,483,607
Real estate and other
property acquired
in settlement of loans 19,500 0
Accrued interest receivable 522,807 583,330
Investment required by
law-stock in Federal
Home Loan Bank, at cost 320,300 320,300
Cash value of life insurance 635,040 626,638
Other assets 146,261 193,195
----------- -----------
Total Assets $62,644,712 60,468,933
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------
Liabilities:
Deposits $49,398,118 47,336,018
Advances from Federal Home Loan Bank 5,000,000 5,000,000
Accrued interest payable 431,918 337,586
Income taxes payable 1,727 14,770
Dividends payable 1,481,205 0
Other liabilities 39,513 156,446
----------- -----------
Total Liabilities 56,352,481 52,844,820
=========== ===========
Stockholders' Equity:
Common stock, $.10 par
value, 4,000,000 shares authorized,
661,250 shares issued and 507,262
shares outstanding 66,125 66,125
Preferred stock, no par value, 1,000,000
shares authorized, no shares
issued or outstanding 0 0
Additional paid in capital 5,410,028 6,135,412
Retained Earnings 2,936,675 3,662,836
Accumulated other comprehensive income (loss) (5,323) (72,086)
----------- -----------
8,407,505 9,792,287
Receivable from employee stock ownership plan (396,750) (449,650)
Treasury stock, 153,988 shares at cost (1,718,524) (1,718,524)
----------- -----------
Total Stockholders' Equity 6,292,231 7,624,113
----------- -----------
Total Liabilities and Stockholders' Equity $62,644,712 60,468,933
=========== ===========
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QUITMAN BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME
---------------------------------
QUARTER ENDED
DECEMBER 31,
---------------------------
2000 1999
----------- ------------
(Unaudited) (Unaudited)
Interest Income:
Loans receivable:
First mortgage loans $1,044,299 883,821
Consumer and other loans 95,411 70,323
Interest on FHLMC Pool 18 31
Investment securities 105,384 99,109
Interest-bearing deposits 19,793 5,590
----------- ----------
Total Interest Income 1,264,905 1,058,874
----------- ----------
Interest Expense:
Deposits 741,316 575,614
Interest on Federal Home
Loan Bank advances 88,299 41,446
----------- ----------
Total Interest Expense 829,615 617,060
----------- ----------
Net Interest Income 435,290 441,814
Provision for loan losses 15,000 15,000
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Net Interest Income After
Provision for Losses 420,290 426,814
----------- ----------
Non-Interest Income:
Gain (loss) on sale of securities (7,582) (7,060)
Gain on sale of other real estate 0 1,576
Service charges 29,571 22,619
Insurance commissions 3,122 3,377
Other income 21,374 13,779
----------- ----------
Total Non-Interest Income 46,485 34,291
----------- ----------
Non-Interest Expense:
Compensation 142,966 126,852
Other personnel expenses 73,347 63,190
Occupancy expenses of premises 14,075 12,206
Furniture and equipment expenses 52,307 53,320
Federal deposit insurance 2,327 6,069
Advertising 6,978 11,475
Office supplies 9,388 11,577
Legal expense 6,649 14,699
Charitable contributions 5,810 11,973
Accounting and auditing 17,085 13,150
Other operating expenses 83,960 75,671
----------- ----------
Total Non-Interest Expense 414,892 400,182
----------- ----------
Income Before Income Taxes 51,883 60,923
Provision for Income Taxes 22,223 28,690
----------- ----------
Net Income $ 29,660 32,233
=========== ==========
Earnings Per Share (Basic
and Diluted) $.06 .07
============ ==========
Dividends Per Share $2.92 .00
=========== ==========
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QUITMAN BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
-----------------------------------------------
ACCUMULATED
OTHER
ADDITIONAL COMPREHENSIVE RECEIVABLE
COMMON PAID IN RETAINED INCOME FROM TREASURY
STOCK CAPITAL EARNINGS (LOSS) ESOP STOCK TOTAL
--------- --------- ---------- ------------ ----------- ---------- ----------
Balance, September 30, 1999 $66,125 6,135,412 3,491,984 (77,699) (502,550) (1,438,272) 7,675,000
Net income 0 0 32,233 0 0 0 32,233
Other comprehensive income (loss) 0 0 0 (38,103) 0 0 (38,103)
Change in receivable from
employee stock ownership plan 0 0 0 0 52,900 0 52,900
Treasury stock acquired,
26,698 shares 0 0 0 0 0 (280,252) (280,252)
------- --------- ---------- ------------ ----------- ---------- ----------
Balances, December 31, 1999,
(Unaudited) 66,125 6,135,412 3,524,217 (115,802) (449,650) (1,718,524) 7,441,778
======= ========= ========== ============ =========== ========== ==========
Balance, September 30, 2000 66,125 6,135,412 3,662,836 (72,086) (449,650) (1,718,524) 7,624,113
Net income 0 0 29,660 0 0 0 29,660
Dividends 0 (725,384) (755,821) 0 0 0 (1,481,205)
Other comprehensive income (loss) 0 0 0 66,763 0 0 66,763
Change in receivable from
employee stock ownership plan 0 0 0 0 52,900 0 52,900
------- --------- ---------- ------------ ----------- ---------- ----------
Balances, December 31, 2000
(Unaudited) $66,125 5,410,028 2,936,675 (5,323) (396,750) (1,718,524) 6,292,231
======= ========= ========== ============ =========== ========== ==========
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QUITMAN BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS
-------------------------------------
QUARTER ENDED DECEMBER 31,
---------------------------
2000 1999
---------- ---------
(Unaudited) (Unaudited)
Cash Flows From Operating Activities:
- -------------------------------------
Net income $ 29,660 32,233
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation 35,463 37,192
Provision for loan losses 15,000 15,000
Amortization (Accretion) of securities 2,398 2,659
Gain on sale of foreclosed assets 0 (1,576)
(Gain) loss on sale of securities 7,582 7,060
Deferred income taxes (3,926) 33
Change in Assets and Liabilities:
(Increase) Decrease in accrued
interest receivable 60,523 68,639
Increase (Decrease) in accrued
interest payable 94,332 55,351
Increase (Decrease) in other liabilities (116,933) (119,600)
Increase (Decrease) in income taxes payable (13,043) (860)
(Increase) Decrease in other assets 16,467 11,570
--------- ---------
Net cash provided (used) by operating activities 127,523 107,701
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Cash Flows From Investing Activities:
- -------------------------------------
Capital expenditures (7,429) (6,836)
Purchase of available-for-sale securities (248,828) (319,977)
Proceeds from sale of foreclosed property 0 12,500
Proceeds from sale of available-for-sale
securities 740,156 342,634
Net (increase) decrease in loans (1,004,362) (1,080,488)
Principal collected on mortgage-backed securities 48,464 29,621
Increase in cash value of life insurance (8,402) (62,401)
---------- -----------
Net cash provided (used) by investing activities (480,401) (1,084,947)
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Cash Flows From Financing Activities:
- -------------------------------------
Net increase (decrease) in deposits 2,062,100 482,802
Proceeds from Federal Home Loan Bank advances 0 1,000,000
Principal collected on receivable from ESOP 52,900 52,900
Purchase of treasury stock 0 (280,252)
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Net cash provided (used) by financing activities 2,115,000 1,255,450
---------- -----------
Net Increase (Decrease) in cash and cash
equivalents 1,762,122 278,204
Cash and Cash Equivalents at Beginning of Period 1,663,455 1,968,695
---------- -----------
Cash and Cash Equivalents at End of Period $3,425,577 2,246,899
========== ===========
Supplemental Disclosures of Cash Flows Information:
- ---------------------------------------------------
Cash Paid During The Period:
Interest $ 735,283 561,709
Income taxes 31,600 26,680
Non-Cash Investing
Activities:
Increase (Decrease) in
unrealized gains on
available-for-sale securities 101,156 (57,732)
-6-
QUITMAN BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
-----------------------------------------------
QUARTER ENDED DECEMBER 31,
---------------------------
2000 1999
---------- ----------
(Unaudited) (Unaudited)
Net Income $ 29,660 32,233
----------- ----------
Other Comprehensive
Income, Net of Tax:
Unrealized gains (losses) on securities:
Unrealized holding gains (losses)
arising during the period 59,181 (45,163)
Reclassification adjustment for (gains)
losses included in net income 7,582 7,060
----------- ----------
Other Comprehensive Income (Loss) 66,763 (38,103)
----------- ----------
Comprehensive Income (Loss) $ 96,423 (5,870)
=========== ==========
-7-
QUITMAN BANCORP, INC. AND SUBSIDIARY
Notes to Financial Statements
(Unaudited)
Note 1 - Basis of Preparation
- -----------------------------
The accompanying unaudited financial statements were prepared in accordance
with instructions for Form 10-QSB and therefore do not include all
disclosures necessary for a complete presentation of the statements of
financial condition, statements of income, statements of comprehensive
income and statements of cash flow in conformity with generally accepted
accounting principles. However, all adjustments which are, in the opinion
of management, necessary for the fair presentation of the interim financial
statements have been included. All such adjustments are of a normal
recurring nature. The statement of income for the three-month period ended
December 31, 2000 is not necessarily indicative of the results which may be
expected for the entire year.
It is suggested that these unaudited financial statements be read in
conjunction with the audited consolidated financial statements and notes
thereto for Quitman Bancorp, Inc. and Subsidiary for the year ended
September 30, 2000.
Note 2 - Plan of Conversion
- ---------------------------
On October 14, 1997, the Bank's Board of Directors approved a plan ("Plan")
to convert from a federally chartered mutual savings bank to a federally
chartered stock savings bank subject to approval by the Bank's members.
The Plan, which included formation of the holding company, Quitman Bancorp,
Inc., was subject to approval by the Office of Thrift Supervision (OTS) and
included the filing of a registration statement with the SEC. The
conversion was completed on April 2, 1998. Actual conversion costs were
accounted for as a reduction in gross proceeds.
The Plan called for the common stock of the Bank to be purchased by the
holding company and for the common stock of the holding company to be
offered to various parties in an offering at a price of $10.00 per share.
The stockholders of the holding company approved a proposed stock option
plan and a proposed restricted stock plan at a meeting of the stockholders
on April 13, 1999. Shares issued to directors and employees under these
plans may be from authorized but unissued shares of common stock or they
may be purchased in the open market. In the event that options or shares
are issued under these plans, such issuances will be included in the
earnings per share calculation; thus, the interests of existing
stockholders would be diluted.
The Bank may not declare or pay a cash dividend if the effect thereof would
cause its net worth to be reduced below either the amounts required for the
liquidation account discussed below or the regulatory capital requirements
imposed by federal regulations.
At the time of conversion, the Bank established a liquidation account
(which is a memorandum account that does not appear on the balance sheet)
in an amount equal to its retained income as reflected in the latest
balance sheet used in the final conversion prospectus. The liquidation
account will be maintained for the benefit of eligible account holders who
continue to maintain their deposit accounts in the Bank after the
conversion. In the event of a complete liquidation of the Bank (and only
in such an event), eligible depositors who continue to maintain accounts
shall be entitled to
-8-
receive a distribution from the liquidation account
before any liquidation may be made with respect to common stock.
Note 3 - Stock Repurchase
- -------------------------
The Company has adopted a stock repurchase program that allows for the
repurchase, from time to time, of up to 153,988 shares of common stock.
Any shares repurchased may be used for general and other corporate
purposes, including the issuance of shares upon the exercise of stock
options. On December 9, 1999, the Company completed its stock repurchase
program, having repurchased 153,988 shares of its common stock at a cost of
$1,718,524.
Note 4 - Earnings Per Share
- ---------------------------
The following table sets forth the reconciliation of the numerators and
denominators of the basic and diluted earnings per share (EPS)
computations:
THREE MONTHS ENDED
DECEMBER 31,
---------------------
2000 1999
------- -------
(a) Net income available to shareholders 29,660 32,233
------- -------
Denominator:
Weighted-average shares outstanding 507,262 526,447
Less: ESOP weighted-average shares
Unallocated 46,741 50,255
------- -------
(b) Basic EPS weighted-average shares
outstanding 460,521 476,192
Effect of dilutive securities 0 1,524
------- -------
(c) Diluted EPS weighted-average shares
outstanding 460,521 474,668
======= =======
Basic earnings per share (a/b) .06 .07
======= =======
Diluted earnings per share (a/c) .06 .07
======= =======
-9-
ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION
Comparison of Financial Condition at December 31, 2000 and September 30, 2000
Quitman Bancorp, Inc. (the "Company") may from time to time make written or oral
"forward-looking statements" including statements contained in the Company's
filings with the Securities and Exchange Commission (including this report on
Form 10-QSB), in its reports to stockholders and in other communications by the
Company, which are made in good faith by the Company pursuant to the "safe
harbor" provisions of the Private Securities Litigation Reform Act of 1995.
These forward-looking statements involve risks and uncertainties, such as
statements of the Company's plans, objectives, expectations, estimates and
intentions, that are subject to change based on various important factors (some
of which are beyond the Company's control). The following factors, among
others, could cause the Company's financial performance to differ materially
from the plans, objectives, expectations, estimates and intentions expressed in
forward-looking statements: the strength of the United States economy in
general and the strength of the local economies in which the Company conducts
operations; the effect of, and changes in, trade, monetary and fiscal policies
and laws, including interest rate policies of the Board of Governors of the
Federal Reserve System, inflation, interest rate and market and monetary
fluctuations; the timely development of and acceptance of new products and
services of the Company and the perceived overall value of these products and
services by users, including the features, pricing and quality compared to
competitors' products and services; the willingness of users to substitute
competitors' products and services for the Company's products and services; the
success of the Company in gaining regulatory approval of its products and
services, when required; the impact of changes in financial services' laws and
regulations (including laws concerning taxes, banking, securities and
insurance); technological changes, acquisitions; changes in consumer spending
and saving habits; and the success of the Company at managing the risks
described above involved in the foregoing.
The Company cautions that these important factors are not exclusive. The
Company does not undertake to update any forward-looking statement, whether
written or oral, that may be made from time to time by or on behalf of the
Company.
Total assets increased by $2.2 million or 3.6% due primarily to the increase in
cash and cash equivalents and loans resulting from funds received from an
increase in deposits.
Total equity decreased by $1,331,822 as result of net income for the three
months ended December 31, 2000, changes in other comprehensive income, reduction
of a guaranty of a loan to the Bank's employee stock ownership plan and
declaration of a special distribution of $2.92 per share, $1,481,205, to the
Company's stockholders.
Non-Performing Assets and Delinquencies
Loans accounted for on a non-accrual basis decreased to $173,055 at December 31,
2000 from $193,819 at September 30, 2000. The decrease was the result of eight
loans being reclassified to performing loans and five loans being added to non-
accrual. The allowance for loan losses was $441,572 at December 31, 2000.
-10-
Comparison of the Results of Operations for the Three Months Ended December 31,
2000 and 1999
Net Income. Net income decreased by $2,753 or 8% from net income of $32,233 for
the three months ended December 31, 1999 to net income of $29,660 for the three
months ended December 31, 2000. This decrease is primarily the result of
increased non-interest expense and increased interest income that was more than
offset by an increase in interest expense. The annualized return on average
assets decreased from .24% to .19% for the three months ended December 31, 1999
and 2000, respectively.
Net Interest Income. Net interest income decreased $6,524 or 1.5% from $441,814
for the three months ended December 31, 1999 to $435,290 for the three months
ended December 31, 2000. The increase was primarily due to an increase in loans
and a moderate increase in rates, offset by an increase in interest expense.
Interest Income. Interest income increased $206,000 for the three months ended
December 31, 2000 compared to the same three months ended December 31, 1999.
The increase in interest income was primarily due to an increase in the average
balance of interest-earning assets. The average balance of interest-earning
assets increased by 17.5%. This increase in average interest-earning assets
added an additional $206,000 of interest income. The average yield on interest-
earning assets increased moderately to 8.9% from 8.7% for the three months ended
December 31, 2000 and 1999, respectively.
Interest Expense. Interest expense increased $213,000 from $617,000 for the
three months ended December 31, 1999 to $830,000 for the three months ended
December 31, 2000. The increase in interest expense was due to an increase in
average interest-bearing liabilities of $7.8 million and an increase in
the cost of funds of 79 basis points (100 basis points equals 1%). The average
balances of deposits and advances from the Federal Home Loan bank increased by
$7.8 million, from the three months ended December 31, 1999 to the three months
ended December 31, 2000.
Non-Interest Income. Non-interest income increased by $12,000 primarily from an
increase in service charges, $7,000 and miscellaneous income, $5,000.
Non-Interest Expense. Non-interest expense increased by $15,000 primarily due
to increased compensation and other personnel expense, furniture and equipment
expense and other operating expenses. Our compensation and other personnel
expense increased an aggregate of $26,000 between the periods as a result of
year-end pay raises, hiring of additional employees and contributions to the
Bank's Restricted Stock Plan approved in April of 1999. Other non-interest
expenses, including expenses of the Parent Company in the amount of $17,000,
decreased $11,000.
Our expenses have increased because of the cost associated with our Employee
Stock Ownership Plan, Restricted Stock Plan, and Stock Option Plan, and the cost
of being a public company. We also offered checking accounts and the use of an
automated teller machine (an "ATM") to our customers during fiscal 1999. Our
preparation cost for these products and the cost of soliciting checking account
funds has also increased our expenses. Although our checking account funds have
increased, we have not yet received sufficient other income from the ATM to
offset its additional cost.
Although no definite plans have been made, we are exploring whether to purchase
land and construct a branch. We would likely hire experts or spend money before
we commit to purchasing land or constructing a new branch. If we decided not to
build a new branch, any money that we had spent up to that time would be a non-
interest expense and would negatively affect our income.
Non-interest expense has increased as a result of a staffing and equipping of
the new bank building opened in
-11-
April 1999 and we hope that the new building will ultimately produce higher
overall levels of loan and deposit activity to offset the additional expenses.
We believe this expansion should enhance shareholder value and hope that the
decrease in earnings will not be as great during the remainder of fiscal year
2001. Our statement of beliefs concerning our expansion is a forward-looking
statement. The Private Securities Litigation Reform Act of 1995 (the "Act")
provides protection to us in making certain forward looking statements that are
accompanied by the factors that could cause actual results to differ materially
from the forward looking statement. As with any expansion, if the new office or
additional personnel do not ultimately result in increased loan and deposit
activity and increased net income, these expenses would continue to have an
adverse effect on net income. Our non-interest expense would further increase if
we built the new branch discussed in the prior paragraph.
Income Taxes. Income tax expense amounted to $28,690 for the three months ended
December 31, 1999 compared to $22,223 for the three months ended December 31,
2000.
Liquidity and Capital Resources
Management monitors our risk-based capital and leverage capital ratios in order
to assess compliance with regulatory guidelines. At December 31, 2000, the Bank
had tangible capital, leverage, and total risk-based capital of 9.28%, 9.28% and
14.56%, respectively, which exceeded the OTS's minimum requirements of 1.50%,
4.00% and 8.00%, respectively.
Holders of the common stock of the Company are entitled to share ratably in
dividends, if and when, declared by the Board of Directors of the Company, out
of funds legally available therefore. Federal banking law provides that a
savings bank may, by providing prior regulatory notice, generally pay dividends
during a calendar year in an amount equal to net income for the calendar year
plus retained net income for the preceding two years. Any amount in excess of
that level requires prior regulatory approval from the Office of Thrift
Supervision (the "OTS"). The OTS may disapprove any dividend if the Bank is
undercapitalized or the dividend would render the Bank undercapitalized. The
OTS may also disapprove any dividend for, among other reasons, safety and
soundness concerns. Also, the Bank may not pay a dividend if the payment would
cause its net worth to be reduced below the amount required for the liquidation
account established at the time of the conversion of the Bank from mutual to
stock form.
On December 19, 2000 the Board of Directors approved a dividend of $2.92 per
share payable January 11, 2001 to shareholders of record on December 29, 2000.
This dividend will be partially paid from funds made available by dividends from
the subsidiary bank and partially paid from funds held by the Company.
Approximately $1.43 per share is deemed to be a return of capital.
On April 4, 2000 the Board of Directors approved a dividend of $.20 per share,
payable May 31, 2000 to shareholders of record on May 17, 2000. This dividend
was paid from funds made available by dividends from the subsidiary bank.
On April 20, 1999, the Board of Directors approved a dividend of $.20 per share,
payable on May 24, 1999 to shareholders of record on May 10, 1999. While the
Company paid this dividend from its cash funds, the primary source of funds
available for the payment of cash dividends by the Company are dividends from
the subsidiary bank.
We are exploring whether to purchase land and construct a branch. Although no
definite plans have been made, if a new branch is built, the land and
construction cost would total approximately $600,000. We have sufficient liquid
assets to pay for these costs.
-12-
Pursuant to FASB No. 130 the Company is required to record changes in the value
of its investment portfolio as regards unrealized gains or losses that may
result from movements in interest rates. For the quarter ended December 31,
2000, the savings bank showed unrealized losses, net of tax effect, totaling
$5,323 due to increases in interest rates as the National Money Market reacted
to actions by the Federal Open Market Committee. Management does not anticipate
the realization of the above loss. The unrealized loss does however negatively
impact the Company's capital. The unrealized losses, net of applicable taxes,
combined with net operating income of $29,660, a reduction in the receivable
from the Bank's Employee Stock Ownership Plan of $52,900 and the approval of a
$2.92 per share dividend yields a net decrease in the Company's capital of
$1,331,882. The book value per share of common stock decreased from $15.03 on
September 30, 2000 to $12.40 as of December 31, 2000. The Bank's capital
continues to exceed regulatory requirements and continues to be adequate to
support future asset growth.
-13-
PART II. OTHER INFORMATION
Item 1. Legal Proceedings
-----------------
Not applicable.
Item 2. Changes in Securities and Use of Proceeds
-----------------------------------------
Not applicable.
Item 3. Defaults Upon Senior Securities
-------------------------------
Not applicable.
Item 4. Submission of Matters to a Vote of Security Holders
---------------------------------------------------
Not applicable.
Item 5. Other Information
-----------------
Not applicable.
Item 6. Exhibits and Reports on Form 8-K
--------------------------------
(a) None.
(b) A Form 8-K (Item 5), dated December 19, 2000, was filed in
December 2000 to announce the declaration of a special dividend.
-14-
SIGNATURES
In accordance with the requirements of the Securities Exchange Act of
1934, as amended, the registrant has caused this report to be signed on its
behalf by the undersigned, thereunto duly authorized.
QUITMAN BANCORP, INC.
Date: February 8, 2001 By: /s/ Melvin E. Plair
-------------------------------------
Melvin E. Plair
President and Chief Executive Officer
(Principal Executive and Financial
Officer)
(Duly Authorized Officer)
Date: February 8, 2001 By: /s/ Peggy L. Forgione
------------------------------------
Peggy L. Forgione
Vice President and Controller
(Chief Accounting Officer)
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