UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 10QSB
(Mark One)
[X ] QUARTERLY REPORT UNDER SECTION 13 OR 15 (D) OF THE SECURITIES
EXCHANGE ACT OF 1934. FOR THE QUARTERLY PERIOD ENDED:
DECEMBER 31, 1996
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15 (d) OF THE SECURITIES
EXCHANGE ACT OF 1934. FOR THE TRANSITION PERIOD FROM ___________
TO _____________ FOR QUARTER ENDED
COMMISSION FILE NUMBER: 0-21688
FFBS BANCORP, INC.
(exact name of registrant as specified in its charter)
Delaware 64-0828070
(State or other (IRS Employer ID No)
jurisdiction of
incorporation or organization)
1121 Main Street, Columbus, Mississippi 39701
(Address of principal executive offices)
(601) 328-4631
(Issuer's telephone number)
N/A
(Former name, former address and former fiscal year
if changed since last report)
Indicate by check mark whether the registrant (1) has filed all
the reports required to be filed by Section 13 of 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
APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDINGS DURING THE PRECEDING FIVE YEARS:
Indicate by check mark whether the registrant has filed all
documents and reports required to be filed by Sections 12, 13, or
15 (d) of the Securities Exchange Act of 1934 subsequent to the
distribution of securities under a plan confirmed by a court.
YES NO
APPLICABLE ONLY TO CORPORATE ISSUERS:
Indicate the number of shares outstanding of each of the issuer's
classes of common equity, as of the latest practicable date:
1,565,595 shares of common stock, $.01 par value 12/31/96
Transitional Small Business Disclosure Format (check one):
YES NO x
FFBS BANCORP, INC.
AND SUBSIDIARY
CONSOLIDATED STATEMENT OF OPERATIONS
(UNAUDITED)
Three Months Ended Six Months Ended
December 31, December 31,
1996 1995 1996 1995
__________ __________ __________ __________
INTEREST INCOME
Interest and fees
on loans $1,835,036 $1,770,655 $3,656,840 $3,507,054
Interest on
mortgage-backed
and related
securities 53,646 29,932 91,739 57,897
Interest on invest-
ment securities 372,522 355,663 755,665 720,977
FHLB stock
dividends 11,320 11,756 22,551 23,343
Interest on
deposits due
from banks 83,294 60,678 141,317 117,791
__________ __________ __________ __________
2,355,818 2,228,684 4,668,112 4,427,062
INTEREST EXPENSE
Interest on
deposits 1,176,591 1,140,787 2,324,121 2,255,790
__________ __________ __________ __________
Net interest income 1,179,227 1,087,897 2,343,991 2,171,272
Provision of losses
on loans 0 0 0 0
__________ __________ __________ __________
Net interest income
after provision
for losses on
loans 1,179,227 1,087,897 2,343,991 2,171,272
NON-INTEREST INCOME
Loan fees and
service charges 61,244 44,943 115,104 90,002
NOW account fees 75,244 72,554 153,767 133,057
Other 24,430 26,061 52,638 52,264
__________ __________ __________ __________
160,918 143,558 321,509 275,323
NON-INTEREST EXPENSE
Compensation and
benefits 344,821 340,033 690,727 631,454
Occupancy 33,738 25,746 61,382 53,238
Furniture and
equipment 17,259 17,615 35,891 34,650
Deposit insurance
premium 44,302 52,960 699,148 105,353
Loss on foreclosed
real estate 25 3,713 146 3,713
Data processing 36,099 36,407 72,606 79,864
Other 168,226 127,737 309,937 261,742
__________ __________ __________ __________
644,470 604,211 1,869,837 1,170,014
__________ __________ __________ __________
Income before income
taxes and
cumulative effect
of accounting
change 695,675 627,244 795,663 1,276,581
Income tax expense:
Current 198,200 187,690 174,988 373,140
Deferred income
tax 23,000 24,500 41,000 59,000
__________ __________ __________ __________
Net Income $ 474,475 $ 415,054 $ 579,675 $ 844,441
========== ========== ========== ==========
Earnings per common
share $ 0.31 $ 0.28 $ 0.38 $ 0.56
FFBS BANCORP, INC.
AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(UNAUDITED)
December 31, June 30,
1996 1996
ASSETS ____________ ____________
Cash $ 2,989,331 $ 3,337,978
Interest-bearing deposits due
from banks 4,607,960 3,673,244
Federal funds sold 0 550,000
____________ ____________
Total cash and cash equivalents 7,597,291 7,561,222
Other interest-bearing deposits due
from bank 0 0
Investment securities (approximate
market value of $23,542,126 at
December 31, 1996 and $27,517,628
at June 30, 1996) 23,771,511 27,740,646
Mortgage-backed and related securities
(approximate market value of
$5,917,328 at December 31, 1996, and
$2,449,956 at June 30, 1996) 5,949,377 2,506,359
Federal Home Loan Bank stock, at cost 779,000 756,500
Loans receivable, net 86,643,915 83,528,151
Foreclosed real estate 0 554,515
Properties and equipment 1,064,418 1,095,423
Accrued interest receivable 1,073,504 1,125,991
Other assets 246,307 359,551
____________ ____________
Total Assets $127,125,323 $125,228,358
============ ============
LIABILITIES AND RETAINED EARNINGS
Liabilities:
Deposits $101,462,860 $ 99,148,108
Advances from borrowers for taxes
and insurance 79,764 259,102
Accrued interest payable on deposits 380,205 695,107
Accrued expenses and other
liabilities 557,210 487,706
____________ ____________
Total liabilities 102,480,039 100,590,023
Commitments and contingencies
Stockholders' equity:
Cumulative preferred stock, $.01
par value, 500,000 shares
authorized; shares issued and
outstanding - none
Common stock, $.01 par value,
2,000,000 shares authorized;
1,565,595 and 1,572,183 shares
issued and outstanding at
December 31, 1996 and June 30,
1996, respectively. 15,656 15,722
Additional paid in capital 15,187,833 15,253,646
Retained earnings 10,330,515 10,260,020
Unrealized loss on available-for-
sale securities 0 (2,333)
Loan receivable from ESOP (888,720) (888,720)
____________ ____________
24,645,284 24,638,335
____________ ____________
Total Liabilities and Retained Earnings $127,125,323 $125,228,358
============ ============
FFBS BANCORP, INC.
AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
Six Months Ended
December 31,
1996 1995
____________ ____________
CASH FLOWS FROM OPERATING ACTIVITIES
Net income $ 579,674 $ 844,441
Adjustments to reconcile net earnings
to net cash:
Depreciation of properties and
equipment 45,488 32,240
Accretion of discount on loans (6,461) (1,783)
Accretion of discount on
mortgage-backed securities (466) (240)
Accretion of discount on
investments (13,043) (62,326)
Amortization of premium on
investments 10,256 9,712
Amortization of premium on
mortgage-backed securities 2,143 3,401
Deferred income taxes (benefit) 41,000 0
FHLB stock dividends (22,500) (23,200)
Provision for losses on loans 0 0
(Increase) decrease in accrued
interest receivable 52,487 17,424
(Increase) decrease in other
assets 113,244 224,927
Increase (decrease) in accrued
interest payable on deposits (314,902) (216,830)
Increase (decrease) in accrued
expenses and other liabilities 28,504 (38,879)
Provision for losses on
foreclosed real estate 0 0
____________ ____________
Net cash provided by operating
activities 515,424 788,887
CASH FLOWS FROM INVESTING ACTIVITIES
(Increase) decrease in other
interest-bearing deposits due from
banks 0 100,000
Loan originations (27,868,000) (20,346,000)
Purchase of investment securities (6,528,078) (8,042,552)
Purchase of mortgage-backed and
related securities (3,657,749) (984,900)
Principal payment of loans 21,835,697 16,289,713
Principal repayments of mortgage-
backed and related securities 213,054 218,734
Sale of loans 2,923,000 2,170,000
Proceeds from calls and securities
of investment securities 10,500,000 10,138,872
Purchase of loans 0 (117,055)
Sale of foreclosed real estate 554,515 0
Foreclosure of real estate 0 (52,177)
Purchase of properties and equipment (14,483) (18,917)
____________ ____________
Net cash used in investing activities (2,042,044) (644,282)
CASH FLOWS FROM FINANCING ACTIVITIES
Increase (decrease) in deposits 2,314,752 3,705,586
Increase (decrease) in advances from
borrowers for taxes and insurance (179,338) (136,510)
Purchase of company stock (222,829) (184,638)
Dividends declared (391,899) (1,908,370)
Exercise of stock options 39,670 0
Adjustment to unrealized loss on
available-for-sale securities 2,333 0
____________ ____________
Net cash provided by financing
activities 1,562,689 1,476,068
____________ ____________
Net increase in cash and cash
equivalents 36,069 1,620,673
Cash and cash equivalents at beginning
of period 7,561,222 6,495,700
____________ ____________
Cash and cash equivalents, at end
of period $ 7,597,291 $ 8,116,373
============ ============
FFBS BANCORP, INC.
Notes to Unaudited Consolidated Financial Statements
(1) Basis of Presentation
The accompanying unaudited consolidated financial statements
include the accounts of FFBS Bancorp, Inc. and its wholly owned
subsidiary, First Federal Bank for Savings. All significant
intercompany balances and transactions have been eliminated for the
purpose of the consolidated financial statements. In preparing the
statement, management is required to make estimates and assumptions
that affect the reported amounts of assets and liabilities as of the
date of the balance sheets and revenues and expenses for the periods.
Actual results could differ from those estimates. In the opinion of
management, all adjustments necessary for the fair presentation of the
results of operations for the interim periods presented have been
made. Such adjustments were of a normal recurring nature.
Certain information and footnote disclosures normally included in
financial statements prepared in accordance with generally accepted
accounting principles have been condensed or omitted. The results of
operations for the interim periods are not necessarily indicative of
the results that may be expected for the entire fiscal year.
(2) Earnings Per Share
Earnings per share for the six months ended December 31, 1996
have been computed on the basis of the weighted average number of
common shares outstanding (1,480,992) and common stock equivalent
shares (42,973) outstanding. Common stock equivalent shares arise
from stock option plans and a recognition and retention stock plan.
FFBS BANCORP, INC.
SUMMARY OF CONSOLIDATED FINANCIAL INFORMATION
(UNAUDITED)
At and for the At and for the
Three Months Ended Six Months Ended
December 31, December 31, December 31, December 31,
1996 1995 1996 1995
____________ ____________ ____________ ____________
Selected
Consolidated
Financial
Data:
Total assets $127,125,322 $121,031,281 $127,125,322 $121,031,281
Loans
receivable,
net 86,643,915 82,396,130 86,643,915 82,396,130
Deposits 101,462,860 96,281,753 101,462,860 96,281,753
Stockholders'
equity 24,645,284 23,892,393 24,645,284 23,892,393
Selected
Consolidated
Operations
Data:
Net interest
income 1,179,227 1,087,897 2,343,991 2,171,272
Provision
for loan
losses 0 0 0 0
Non-interest
income 160,918 143,558 321,509 275,323
Non-interest
expense 644,470 604,211 1,869,837 1,170,014
Net income 474,475 415,054 579,675 844,441
Per Share Data:
Book value at
end of period $16.68 $16.15 $16.68 $16.15
Earnings per
common and
common
equivalent
share 0.31 0.28 0.38 0.56
Cash dividends
declared 0.25 0.20 0.25 1.20
Other Data:
Yield on
average
earning
assets 7.79% 7.62% 7.74% 7.61%
Cost of funds 4.73% 4.76% 4.71% 4.79%
Interest rate
spread 3.06% 2.86% 3.03% 2.82%
Net interest
margin (1) 3.96% 3.81% 3.97% 3.81%
Annualized
return on
average
assets 1.50% 1.42% 0.92% 1.41%
Annualized
return on
average
equity 7.67% 7.05% 4.69% 7.02%
Stockholder's
equity as a
percentage
of total
assets 19.39% 19.87% 19.39% 19.74%
Non-performing
assets as a
percentage
of total
assets (2) 1.00% 0.64% 1.00% 0.64%
Net interest
income as
percentage
of general
and adminis-
trative
expenses 182.98% 180.05% 125.36% 185.58%
(1) Net interest income divided by average interest earning assets
(2) Non-performing assets consist of non-accruing loans, accruing
loans delinquent 90 days or more, and foreclosed real estate.
FFBS BANCORP, INC.
FINANCIAL DATA SCHEDULE
At or At or
For Six For the
Months Ended Year Ended
December 31, June 30,
1996 1996
____________ ____________
Cash $ 2,989,331 $ 3,337,978
Interest-bearing deposits due from banks 4,607,960 3,673,244
Federal funds sold 0 550,000
Trading account assets 0 0
Investments and mortgage-backed
securities held for sale 0 0
Investments and mortgage-backed
securities held to maturity -
carrying value 29,720,888 30,247,005
Investments and mortgage-backed
securities held to maturity -
market value 29,459,454 29,967,584
Loans 86,643,915 83,528,151
Allowance for losses 650,000 666,000
Total assets 127,125,322 125,228,358
Deposits 101,462,860 99,148,108
Short-term borrowings 0 0
Other liabilities 1,017,179 1,441,915
Long-term debt 0 0
Preferred stock - mandatory redemption 0 0
Preferred stock - no mandatory
redemption 0 0
Common stock 15,656 15,722
Other stockholders' equity 24,629,628 24,622,613
Net yield - interest-earning assets -
actual 3.97% 3.78%
Loans on nonaccrual 363,000 495,000
Accruing loans past due 90 days or
more 914,000 675,000
Troubled debt restructuring 40,000 864,000
Potential problem loans 0 0
Allowance for loan loss - beginning of
period 657,000 705,000
Total charge-offs 8,000 44,000
Total recoveries 1,000 5,000
Allowance for loan loss - end of period 650,000 666,000
Loan loss allowance allocated to
domestic loans 650,000 666,000
Loan loss allowance allocated to
foreign loans 0 0
Loan loss allowance - unallocated 0 0
1. Non-Performing Assets
The following table sets forth information regarding non-accrual
loans, loans which are 90 or more days delinquent and still
accruing, and foreclosed properties at the date indicated. At
December 31, 1996, there are no other potential problem loans
except as included in the table below.
(In Thousands)
At
December 31, June 30,
1996 1996
____________ ____________
Non-accrual mortgage loans $ 323 $ 455
Non-accrual other loans 40 40
____________ ____________
Total non-accrual loans 363 495
Loans 90 days or more delinquent
and still accruing 914 675
____________ ____________
Total non-performing loans 1,277 1,170
Total foreclosed real estate,
net of related allowance for
losses 0 558
____________ ____________
Total non-performing assets $ 1,277 $ 1,728
============ ============
Troubled debt restructured $ 40 $ 864
============ ============
Non-performing loans to total
loans 1.47% 1.40%
Total non-performing assets to
total assets 1.00% 1.38%
2. There were no loan concentrations in excess of 10% of total loans
at December 31, 1996.
3. There were no outstanding foreign loans at December 31, 1996.
4. Loans classified for regulatory purposes or for internal credit
review that have not been disclosed in the above table do not
represent or result from trends or uncertainties that management
expects will materially impact the financial condition of the
company or its subsidiary bank, or the future operating results,
liquidity, or capital resources.
5. If all nonaccrual loans have been current throughout their terms,
interest income for the six months ended December 31, 1996, and
June 30, 1996, would be increased (decreased) by approximately
$50 and ($10,000) respectively.
6. Management stringently monitors assets that are classified as
non-performing. Non-performing assets include nonaccrual loans,
loans past due 90 days or more, and foreclosed properties.
Management places loans on a nonaccrual status when it is
determined that the borrower is unable to meet his contractual
obligations or when interest or principal is 90 days or more
past due, unless the loan is adequately secured by way of
collateralization, guarantees, or other security.
7. At December 31, 1996, management was not aware of any potential
problem loans not previously disclosed.
Allowance for Loan Losses
The allowance for loan losses is established through a provision for
loan losses based on management's periodic evaluation of the adequacy
of the allowance for loan losses. Such evaluation, which includes a
review of all loans on which full collectibility may not be reasonably
assured, considers, among other matters, known and inherent risks in
the portfolio, prevailing market conditions, management's judgment as
to collectibility, the estimated net realizable value of the under-
lying collateral, historical loan loss experience and other factors
that warrant recognition in providing for an adequate loan loss
allowance.
(In Thousands)
For the Six For the
Months Ended Year Ended
December 31, June 30,
1996 1996
____________ ____________
Balance at beginning of period $ 657 $ 705
Provision for loan losses 0 0
Charge-offs:
Mortgage loans 0 0
Other loans 8 44
Recoveries:
Mortgage loans 1 3
Other loans 0 2
____________ ____________
Balance at end of period $ 650 $ 666
============ ============
Ratio of net charge-offs during the
period to average loans outstanding (Annualized)
during the period 0.01% 0.50%
Ratio of allowance for loan losses
to non-performing loans at end of
the period 50.90% 56.92%
Ratio of allowance for loan losses
to net loans receivable at the
end of the period 0.75% 0.80%
Ratio of allowance for loan losses
and foreclosed real estate to
total non-performing assets at
end of the period 50.90% 39.21%
FFBS BANCORP, INC.
Management's Discussion and Analysis of
Financial Condition and Results of Operations
The following discussion reviews the financial condition of FFBS
Bancorp, Inc. and its wholly owned subsidiary First Federal Bank for
Savings as of December 31, 1996, and the results of operations for the
six month period ending December 31, 1996 and for the three month
period ending December 31, 1996.
Comparison of Changes in Financial Condition
at December 31, 1996 and at June 30, 1996
At December 31, 1996, total assets were $127.1 million, an
increase of $1.9 million, or 1.51% from June 30, 1996. During the
six month period, net loans receivable accounted for the greatest
change in total assets as the balance increased $3.1 million, or
3.73%, to $86.6 million. The increase in net loans was partially
funded by an increase in deposits of $2.3 million, or 2.33%, to
$101.5 million at December 31, 1996. Proceeds from maturities and
calls of investment securities were partially used to fund the
increase in loans and the purchase of mortgage-backed securities.
At December 31, 1996, mortgage-backed and related securities were
$5.9 million, an increase of $3.4 million, or 137%. Total
stockholder's equity remained stable at $24.6 million at December 31,
1996 and June 30, 1996.
Liquidity and Capital Resources
Positive cash flows of $515,000 were provided by the Company's
operating activities for the six months ended December 31, 1996,
primarily as a result of net income.
Investing activities of the Company provided negative cash flows
of $2.0 million for the six months ended December 31, 1996, resulting
primarily from an increase in loan originations over loan repayments
and the sale of loans. Proceeds from calls and maturities of
investment securities offset by the purchase of investment securities
amounted to a net of $4.0 million. Purchases of mortgage-backed and
related securities amounted to $3.7 million; therefore, proceeds
from calls and maturities of investment securities were used to fund
these purchases.
Financing activities provided positive cash flows of $1.6 million
for the six months ended December 31, 1996, due to an increase in
deposits of $2.3 million. Offsetting the increase in deposits were
$400,000 in dividends and the repurchase of company stock of $223,000.
The Company is required to maintain minimum levels of liquid
assets as defined by OTS regulations. This requirement, which may be
varied at the direction of the OTS depending upon economic conditions
and deposit flows, is based upon a percentage of deposits and short-
term borrowings. The required minimum liquidity ratio is currently
5.0%. At December 31, 1996, the Bank's liquidity ratio was 26.43%.
The OTS capital regulations require savings institutions to meet
three capital standards: a 1.5% tangible capital standard; a 3%
leverage (core capital) ratio; and an 8% risk-based capital standard.
Although the core capital ratio is 3%, the OTS regulations provide
that an institution with less than 4% core capital is deemed to be
"undercapitalized".
At December 31, 1996, the Bank's capital position exceeded
minimum regulatory capital requirements as indicated by the following
table (dollars in thousands):
Risk-Based
Tangible Capital Core Capital Capital
________________ ________________ ________________
Amount Percent Amount Percent Amount Percent
_______ _______ _______ _______ _______ _______
First Federal $19,564 15.9% $19,564 15.9% $20,141 29.4%
OTS Requirement 1,840 1.5% 3,680 3.0% 5,477 8.0%
_______ _______ _______ _______ _______ _______
Excess $17,724 14.4% $15,884 12.9% $14,664 21.4%
======= ======= ======= ======= ======= =======
Comparison of Operating Results for the
Three Months Ended December 31, 1996 and 1995
General
Net income of the Company for the three months ended December 31,
1996 was $474,000 compared to $415,000 for the three months ended
December 31, 1995, an increase of $59,000, or 14.32%, due primarily
to an increase in net interest income of $91,000.
Interest Income
Interest income increased $127,000 to $2.4 million for the three
months ended December 31, 1996 due to an increase of $4.4 million in
average-earning assets and an increase in yield on average-earning
assets to 7.79% from 7.62% for the three months ended December 31,
1995.
Interest Expense
Interest expense increased $36,000, or 3.14%, to $1.2 million for
the three months ended December 31, 1996 due to an increase in
average deposits of $4.8 million. The cost of funds for the three
months ended December 31, 1996 was 4.73% compared to 4.76% for the
three months ended December 31, 1995.
Net Interest Income
Net interest income increased $91,000, or 8.40%, to $1.2 million for
the three months ended December 31, 1996 due to an increase in the
net interest margin from 3.81% for the three months ended December 31,
1995 to 3.96% for the three months ended December 31, 1996. The
Company's average-earning assets increased $4.4 million while average
deposits increased $4.8 million in comparing the three month periods.
Provision for Loan Losses
The Bank's reserve for loan losses was considered sufficient to absorb
potential losses; therefore, no provisions for loan losses was taken
for either of the three months periods.
Non-interest Income
Non-interest income increased $17,000, or 12.09%, to $161,000 for the
three months ended December 31, 1996. Loan fees and service charges
have increased due to increased originations. Loan originations for
the quarter ended December 31, 1996 were $16.1 million compared to
$6.2 million for the quarter ended December 31, 1995.
Non-interest Expense
Non-interest expense increased $40,000, or 6.66%, to $644,000 for the
three months ended December 31, 1996, compared to $566,000 for the
three months ended December 31, 1995.
Income Tax Expense
Income tax expense amounted to $221,000 for the three months ended
December 31, 1996 compared to $212,000 for the three months ended
December 31, 1995. Deferred income taxes of $23,000 were recorded
for the three months ended December 31, 1996, compared to $25,000
for the three months ended December 31, 1995, due to timing
differences.
Comparison of Operating Results for the
Six Months Ended December 31, 1996 and 1995
General
Net income of the Company for the six months ended December 31, 1996
was $580,000 compared to $844,000 for the six months ended December
31, 1995, a decrease of $265,000, or 31.35%. Due to the FDIC special
assessment of $599,000 offset by a tax benefit of $223,000, net income
was decreased $376,000. Excluding the net effect of the special
assessment, net income would have been $956,000 which would have been
an increase of $111,000 over the first half of last year.
Interest Income
Interest income increased $241,000, or 5.44%, to $4.7 million for the
six months ended December 31, 1996 due to an increase in average-
earning assets of $4.3 million and an increase in yield on average-
earning assets to 7.74% from 7.61% for the six months ended
December 31, 1995.
Interest Expense
Interest expense increased $68,000, or 3.03%, to $2.3 million for the
six months ended December 31, 1996, due to an increase in average
deposits of $4.4 million offset by a decrease in cost of funds of
4.79% for the six months ended December 31, 1995 to 4.71% for the six
months ended December 31, 1996.
Net Interest Income
Net interest income decreased $173,000, or 7.95% to $2.3 million for
the six months ended December 31, 1996 due to an increase in the net
interest margin from 3.81% for the six months ended December 31, 1995
to 3.96% for the six months ended December 31, 1996. The net interest
margin improved due to an increase in the yield on average-earning
assets coupled by a drop in the cost of funds.
Provision for Loan Losses
The Bank's reserve for loan losses was considered sufficient to absorb
potential losses; therefore, no provisions for loan losses was taken
for either of the six months periods.
Non-interest Income
Non-interest income increased $46,000, or 16.78%, to $322,000 for the
six months ended December 31, 1996. Loan fees and service charges
increased due to increased originations. Loan originations for the
six months ended December 31, 1996 were $27.9 million compared to
$20.3 million for the six months ended December 31, 1995. NOW account
fees have increased $21,000, or 15.56%, to $154,000 for the six months
ended December 31, 1996. The increase is attributable to an increase
in the number of accounts and increased fees for non-sufficient funds
and negative balances.
Non-interest Expense
Non-interest expense increased $700,000, or 59.81%, to $1.9 million
for the six months ended December 31, 1996, compared to $1.2 million
from the six months ended December 31, 1995. The increase is primarily
due to the FDIC special assessment of $599,000. Also affecting the
increase was the difference of $59,000 in compensation and benefits,
which was due primarily to the valuation of shares to be released
during the fiscal year for allocation in the Employee's Stock
Ownership Plan. The shares are reported at current fair market value.
The fair market value of the stock at December 31, 1996, was $23.00
per share compared to $17.00 at December 31, 1995. Other non-interest
expense was $310,000 for the six months ended December 31, 1996, an
increase of $48,000, or 18.41%, due to various increases in several
general operating accounts.
Income Tax Expense
Income tax expense amounted to $216,000 for the six months ended
December 31, 1996, compared to $432,000 for the six months ended
December 31, 1995. Tax savings of $223,000 were recorded due to
the FDIC special assessment during the six months ended December 31,
1996. The Company recorded deferred income taxes of $41,000 for
the six months ended December 31, 1996 due to timing differences.
PART II - OTHER INFORMATION
Item 1. Legal Proceedings.
N/A
Item 2. Changes in Securities.
N/A
Item 3. Defaults Upon Senior Securities.
N/A
Item 4. Submission of Matters to a Vote of Security Holders.
N/A
Item 5. Other Information
N/A
Item 6. Exhibits
N/A
SIGNATURES
Pursuant to the requirement of the Security Exchange Act of 1934,
the registrant has duly caused this report to the signed on its behalf
by the undersigned thereunto duly authorized.
FFBS BANCORP, INC.
Date: February 4, 1997 By: E. FRANK GRIFFIN, III
E. Frank Griffin, III
Chief Executive Officer
and President
By: SHERRY L. BOYD
Sherry L. Boyd
Chief Financial Officer