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:
MARCH 31, 1997
[ ] 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:
1,557,445, shares of common stock, $.01 par value 3/31/97
Transitional Small Business Disclosure Format (check one):
YES NO x
FFBS BANCORP, INC.
AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
Three Months Ended Nine Months Ended
March 31, March 31,
1997 1996 1997 1996
__________ __________ __________ __________
INTEREST INCOME
Interest and fees
on loans $1,862,691 $1,778,169 $5,519,531 $5,285,223
Interest on mortgage-
backed and related
securities 104,396 41,931 196,135 99,828
Interest on
investment
securities 350,991 325,509 1,106,656 1,046,486
FHLB stock dividends 11,102 10,918 33,653 34,261
Interest on deposits
due from banks 21,672 79,666 162,989 197,457
__________ __________ __________ __________
2,350,852 2,236,193 7,018,964 6,663,255
INTEREST EXPENSE
Interest on deposits 1,195,482 1,153,644 3,519,603 3,409,434
__________ __________ __________ __________
Net interest income 1,155,370 1,082,549 3,499,361 3,253,821
Provision of losses on
loans 0 0 0 0
__________ __________ __________ __________
Net interest income
after provision
for losses on loans 1,155,370 1,082,549 3,499,361 3,253,821
NON-INTEREST INCOME
Loan fees and service
charges 66,628 41,779 181,732 131,781
NOW account fees 76,435 71,478 230,202 204,535
Other 27,175 36,767 79,813 89,031
__________ __________ __________ __________
170,238 150,024 491,747 425,347
NON-INTEREST EXPENSE
Compensation and
benefits 351,664 340,100 1,042,391 971,554
Occupancy 29,071 26,697 90,453 79,935
Furniture and
equipment 13,737 18,813 49,628 53,463
Deposit insurance
premium 16,015 54,520 715,163 159,873
Loss on foreclosed
real estate 151 3,364 297 7,077
Data processing 38,650 39,393 111,256 119,257
Other 118,973 132,191 428,910 393,933
__________ __________ __________ __________
568,261 615,078 2,438,098 1,785,092
__________ __________ __________ __________
Income before income
taxes and cumulative
effect of accounting
change 757,347 617,495 1,553,010 1,894,076
Income tax expense
Current 204,500 181,500 379,488 554,640
Deferred income tax 33,500 6,500 74,500 65,500
__________ __________ __________ __________
Net Income $ 519,347 $ 429,495 $1,099,022 $1,273,936
========== ========== ========== ==========
Earnings per common
share $ 0.34 $ 0.28 $ 0.72 $ 0.84
FFBS BANCORP, INC.
AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(UNAUDITED)
ASSETS MARCH 31, JUNE 30,
1997 1996
____________ ____________
Cash $ 2,727,087 $ 3,337,978
Interest-bearing deposits due from banks 5,730,686 3,673,244
Federal funds sold 0 550,000
____________ ____________
Total cash and cash equivalents 8,457,773 7,561,222
Other interest-bearing deposits due from
banks 0 0
Investment securities (approximate market
value of $19,628,552 at March 31, 1997
and $27,517,628 at June 30, 1996) 19,791,142 27,740,646
Mortgage-backed and related securities
(approximate market value of $7,459,924
at March 31, 1997 and $2,449,956 at
June 30, 1996) 7,561,702 2,506,359
Federal Home Loan Bank stock, at cost 790,100 756,500
Loans receivable, net 89,595,974 83,528,151
Foreclosed real estate 0 554,515
Properties and equipment 1,112,304 1,095,423
Accrued interest receivable 1,091,357 1,125,991
Other assets 275,971 359,551
____________ ____________
Total Assets $128,676,323 $125,228,358
============ ============
LIABILITIES AND RETAINED EARNINGS
Liabilities:
Deposits $102,727,071 $ 99,148,108
Advances from borrowers for taxes and
insurance 177,270 259,102
Accrued interest payable on deposits 499,918 695,107
Accrued expenses and other liabilities 288,283 487,706
____________ ____________
Total Liabilities 103,692,542 100,590,023
Commitments and contingencies
Stockholders' equity:
Cummulative preferred stock, $.01 par
value, 500,000 shares authorized;
shares issued and outstanding - none
Common stock, $.01 par value, 2,000,000
shares authorized; 1,557,445 and
1,572,183 shares issued and outstanding
at March 31, 1997 and June 30, 1996,
respectively. 15,574 15,722
Additional paid in capital 15,106,414 15,253,646
Retained earnings 10,750,513 10,260,020
Unrealized loss on available-for-sale
securities 0 (2,333)
Loan receivable from ESOP (888,720) (888,720)
____________ ____________
Total stockholders' equity 24,983,781 24,638,335
____________ ____________
Total liabilities and retained earnings $128,676,323 $125,228,358
============ ============
FFBS BANCORP, INC.
AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
Nine Months Ended
March 31,
1997 1996
____________ ____________
CASH FLOWS FROM OPERATING ACTIVITIES
Net income $ 1,099,022 $ 1,273,936
Adjustments to reconcile net
earnings to net cash:
Depreciation of properties and
equipment 65,080 55,110
Accretion of discount on loans (9,801) (2,787)
Accretion of discount on mortgage-
backed securities (2,319) (379)
Accretion of discount on investments (16,061) (76,895)
Amortization of premium on investments 11,541 15,337
Amortization of premium on mortgage-
backed securities 5,373 4,702
Deferred income taxes <benefit> 74,500 0
FHLB stock dividends (33,600) (34,100)
Provision for losses on loans 0 0
<Increase> decrease in accrued
interest receivable 34,634 64,309
<Increase> decrease in other assets 83,581 180,496
Increase <decrease> in accrued
interest payable on deposits (195,190) (52,249)
Increase <decrease> in accrued
expenses and other liabilities (273,923) (264,049)
Provision for losses on foreclosed
real estate 0 7,077
____________ ____________
Net cash provided by operating activities 842,837 1,170,508
CASH FLOWS FROM INVESTING ACTIVITIES
<Increase> decrease in other interest-
bearing deposits due from banks 0 100,000
Loan originations (41,500,000) (31,307,000)
Purchase of investment securities (6,545,977) (13,691,400)
Purchase of mortgage-backed and related
securities (5,526,547) (984,900)
Principal repayment of loans 31,759,978 24,538,603
Principal repayments of mortgage-backed
and related securities 468,150 343,362
Sale of loans 3,682,000 3,721,000
Proceeds from calls and maturities of
investment securities 14,500,000 15,713,872
Purchase of loans 0 (117,055)
Sale of foreclosed real estate 554,515 45,100
Foreclosure of real estate 0 (52,177)
Purchase of properties and equipment (81,961) (24,248)
____________ ____________
Net cash used investing activities (2,689,842) (1,714,843)
CASH FLOWS FROM FINANCING ACTIVITIES
Increase <decrease> in deposits 3,578,963 5,961,500
Increase <decrease> in advances from
borrowers for taxes and insurance (81,832) (87,316)
Purchase of company stock (404,179) (336,516)
Dividends declared (391,399) 0
Dividends paid 0 (1,908,370)
Exercise of stock options 39,670 0
Adjustment to unrealized loss on
available-for-sale securities 2,333 (3,339)
____________ ____________
Net cash provided by <used in> financing
activities 2,743,556 3,625,959
____________ ____________
Net increase <decrease> in cash and cash
equivalents 896,551 3,081,624
Cash and cash equivalents at beginning of
period 7,561,222 6,495,700
____________ ____________
Cash and cash equivalents at end of period $ 8,457,773 $ 9,577,324
============ ============
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 nine months ended March 31, 1997 have
been computed on the basis of the weighted average number of common
shares outstanding (1,477,506) 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 Nine Months Ended
March 31, March 31, March 31, March 31,
1997 1996 1997 1996
____________ ____________ ____________ ____________
Selected
Consolidated
Financial
Data:
Total Assets $128,686,323 $123,553,416 $128,686,323 $123,553,416
Loans receivable,
net 89,595,974 83,558,243 89,595,974 83,558,243
Deposits 102,727,071 98,537,667 102,727,071 98,537,667
Stockholders'
equity 24,983,781 24,170,009 24,983,781 24,170,009
Selected
Consolidated
Operations Data:
Net interest
income 1,155,370 1,082,549 3,629,105 3,253,821
Provision for
loan losses 0 0 0 0
Non-interest
income 170,238 15,024 362,003 425,347
Non-interest
expense 568,261 615,078 2,438,098 1,785,092
Net income 519,347 429,495 1,099,022 1,273,936
Per Share Data:
Book value at end
of period $17.01 $16.43 $16.68 $16.43
Earnings per common
and common
equivalent share 0.34 0.28 0.72 0.86
Cash dividends
declared 0.00 0.00 0.25 1.20
Other Data:
Yield on average
earning assets 7.87% 7.63% 7.80% 7.64%
Cost of funds 4.82% 4.79% 4.72% 4.97%
Interest rate
spread 3.05% 2.84% 3.08% 2.85%
Net interest
margin (1) 3.94% 3.79% 3.94% 3.78%
Annualized return
on average assets 1.65% 1.41% 1.16% 1.41%
Annualized return on
average equity 8.40% 7.04% 5.92% 7.05%
Stockholder's equity
as a percentage of
total assets 19.42% 19.56% 19.42% 19.56%
Non-performing
assets as a
percentage of
total assets (2) 0.39% 0.58% 0.39% 0.58%
Net interest income
as percentage of
general and
administrative
expenses 203.32% 176.00% 143.53% 182.28%
(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 the Nine For the
Months Ended Year Ended
March 31, June 30,
1997 1996
____________ ____________
Cash $ 2,727,087 $ 3,337,978
Interest-bearing deposits due from banks 5,730,686 3,673,244
Federal funds sold 0 550,000
Trading account assets 0 0
Investments amd mortgage-backed
securitites held for sale 0 0
Investments and mortgage-backed securities
held to maturity - carrying value 27,352,844 30,247,005
Investments and mortgage-backed securities
held to maturity - market value 27,088,476 29,967,584
Loans 89,595,974 83,528,151
Allowance for losses 591,000 666,000
Total assets 128,676,323 125,228,358
Deposits 102,727,071 99,148,108
Short-term borrowings 0 0
Other liabilities 965,471 1,441,915
Long-term debt 0 0
Preferred stock - mandatory redemption 0 0
Preferred stock - no mandatory redemption 0 0
Common stock 15,574 15,722
Other stockholders' equity 24,968,207 24,622,613
Net yield - interest-earning assets -
actual 3.94% 3.78%
Loans on nonaccrual 1 495,000
Accruing loans past due 90 days or more 499,000 675,000
Troubled debt restructuring 40,000 864,000
Potential problem loans 0 0
Allowance for loan loss - beginning of
period 650,000 705,000
Total charge-offs 67,000 44,000
Total recoveries 8,000 5,000
Allowance for loan loss - end of period 591,000 666,000
Loan loss allowance allocated to domestic
loans 591,000 666,000
Loan loss allowance allocated to foreign
loans 0 0
Loan loss allowance - unallocated 0 0
Non-Performing Assets
1. 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 March 31, 1997, there
are no other potential problem loans except as included in the
table below.
(In Thousands)
March 31, June 30,
1997 1996
_________ _________
Non-accrual mortgage loans $ 0 $ 455
Non-accrual other loans 1 40
_________ _________
Total non-accrual loans 1 495
Loans 90 days or more delinquent
and still accruing 499 675
_________ _________
Total non-performing loans 500 1,170
Total foreclosed real estate, net of
related allowance for losses 0 558
_________ _________
Total non-performing assets 500 1,728
========= =========
Troubled debt restructured 40 864
========= =========
Non-performing loans to total loans 0.56% 1.40%
Total non-performing assets to total assets 0.39% 1.38%
2. There were no loan concentrations in excess of 10% of total loans at
March 31, 1997.
3. There were no outstanding foreign loans at March 31, 1997.
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 subsidary 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 nine months ended March 31, 1997 and
June 30, 1996 would be increased (decreased) by approximately $0
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 March 31, 1997, 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 underlying
collateral, historical loan loss experience and other factors that
warrant recognition in providing for an adequate loan loss allowance.
(In Thousands)
For the Nine For the Year
Months Ended Ended
March 31, June 30,
1997 1996
____________ ____________
Balance at beginning of period $ 666 $ 705
Provision for loan losses 0 0
Charge-offs:
Mortgage loans 51 0
Other loans 34 44
Recoveries:
Mortgage loans 6 3
Other loans 4 2
____________ ____________
Balance at end of period $ 591 $ 666
============ ============
Ratio of net charge-offs during the
period to average loans outstanding (Annualized)
during the period 0.13% 0.05%
Ratio of allowance for loan losses to
non-performing loans at end of period 118.20% 56.92%
Ratio of allowance for loan losses to
net loans receivable at the end of the
period 0.66% 0.80%
Ratio of allowance for loan losses and
foreclosed real estate to total non-
performing assets at end of the period 118.20% 38.54%
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 March 31, 1997, and the results of operations for the
nine month period ending March 31, 1997 and for the three month period
ending March 31, 1997.
Comparison of Changes in Financial Condition
at March 31, 1997 and at June 30, 1996
Assets totaled $128.7 million at March 31, 1997, an increase of $3.4
million, or 2.75% from June 30, 1996. During the nine month period, net
loans receivable increased $6.1 million, or 7.3%, to $89.6 million at
March 31, 1997. An increase in deposits of $3.6 million, or 3.6% to
102.7 million contributed to funding the increase in loans. Proceeds
from maturities and calls of investment securities were also partially
used to fund the increase in loans and the purchase of mortgage-backed
securities. Investment securities decreased $7.9 million to $19.8
million at March 31, 1997, while Mortgage-backed and related securities
increase %5.1 million to $7.6 million at March 31, 1997. Stockholder's
equity amounted to $25.0 million, an increase of $345,000 over June 30,
1996.
Liquidity and Capital Resources
Positive cash flows of $843,000 were provided by the Company's
operating activities for the nine months ended March 31, 1997, primarily as
a result of net income.
Investing activities of the Company provided negative cash flows of
$2.7 million for the nine months ended March 31, 1997, resulting primarily
from an increase in loan originations over
loan repayments and the sale of loans, netting $6.1 million. Proceeds
from calls and maturities of investment securities offset by the
purchase of investment securities and mortgage-backed and related
securities amounted to a net of $2.4 million in positive cash flows,
thus partially providing funds for loan originations.
Financing activities provided positive cash flows of $2.7 million
for the nine months ended March 31, 1997, due to an increase in deposits
of $3.6 million. Offsetting the increase in deposits were $400,000 in
dividends and the repurchase of company stock of $400,000.
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 March 31,
1997, the Bank's liquidity ratio was 23.50%.
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 March 31, 1997, 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 $20,039 16.1% $20,039 16.1% $20,618 30.1%
OTS Requirement 1,871 1.5% 3,741 3.0% 5,486 8.0%
_______ _______ _______ _______ _______ _______
Excess $18,168 14.6% $16,298 13.1% $15,132 22.1%
======= ======= ======= ======= ======= =======
Comparison of Operating Results for the
Three Months Ended March 31, 1997 and 1996
General
Net income of the Company for the three months ended March 31, 1997
was $519,000 compared to $429,000 for the three months ended March 31,
1996, an increase of $90,000, or 20.92%, due primarily to an increase
in net interest income of $73,000.
Interest Income
Interest income increased $115,000 to $2.4 million for the three months
ended March 31, 1997 due to an increase of $4.2 million in average-
earning assets and an increase in yield on average-earning assets to
7.87% from 7.63% for the three months ended March 31, 1996.
Interest Expense
Interest expense increased $42,000, or 3.63%, to $1.2 million for the
three months ended March 31, 1997 due to an increase in average deposits
of $4.6 million. The cost of funds for the three months ended March 31,
1997 was 4.82% compared to 4.79% for the three months ended March 31,
1996.
Net Interest Income
Net interest income increased $73,000, or 6.73%, to $1.2 million for the
three months ended March 31, 1997 due to an increase in the net interest
margin from 3.79% for the three months ended March 31, 1996 to 3.94% for
the three months ended March 31, 1997. The Company's average-earning
assets increased $4.2 million while average deposits increased $4.6
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 $20,000, or 13.47%, to $170,000 for the
three months ended March 31, 1997. Loan fees and service charges have
increased due to increased originations. Loan originations for the
quarter ended March 31, 1997 were $13.6 million compared to $11.0
million for the quarter ended March 31, 1996.
Non-interest Expense
Non-interest expense decreased $47,000, or 7.61%, to $568,000 for the
three months ended March 31, 1997, compared to $615,000 for the three
months ended March 31, 1996, primarily due to decreased premiums of
$39.000 for FDIC deposit insurance.
Income Tax Expense
Income tax expense amounted to $238,000 for the three months ended
March 31, 1997 compared to $188,000 for the three months ended
March 31, 1996. Deferred income taxes of $34,000 were recorded for
the three months ended March 31, 1997, compared to $7,000 for the
three months ended March 31, 1996, due to timing differences.
Comparison of Operating Results for the
Nine Months Ended March 31, 1997 and 1996
General
Net income of the Company for the nine months ended March 31, 1997
was $1.1 million compared to $1.3 million for the nine months ended
March 31, 1996, a decrease of $175,000, or 13.73%. 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 $1.5 million, which
would have been an increase of $201,000 over the nine months ended
March 31, 1996.
Interest Income
Interest income increased $356,000, or 5.34%, to $7.0 million for
the nine months ended March 31, 1997, due to an increase in
average-earning assets of $4.0 million and an increase in yield on
average-earning assets to 7.80% from 7.64% for the nine months
ended March 31, 1996.
Interest Expense
Interest expense increased $110,000, or 3.23%, to $3.5 million for
the nine months ended March 31, 1997 due to an increase in average
deposits of $4.6 million offset by a decrease in cost of funds to
4.72% for the nine months ended March 31, 1997 from 4.79% for the
nine months ended March 31, 1996.
Net Interest Income
Net interest income decreased $246,000, or 7.55% to $3.5 million for
the nine months ended March 31, 1997 due to an increase in the net
interest margin from 3.78% for the nine months ended March 31, 1996
to 3.94% for the nine months ended March 31, 1997. 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 nine months periods.
Non-interest Income
Non-interest income increased $66,000 or 15.61%, to $492,000 for the
nine months ended March 31, 1997. Loan fees and service charges
increased $50,000, or 37.9% primarily due to newly imposed fees for
loan documentation and increased originations. Loan originations for
the nine months ended March 31, 1997 were $41.5 million compared to
$31.3 million for the nine months ended March 31, 1996. NOW account
fees have increased $26,000 or 12.55%, to $230,000 for the nine months
ended March 31, 1997. 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 $653,000, or 36.58% to $2.4 million for
the nine months ended March 31, 1997, compared to $1.8 million for the
nine months ended March 31, 1996. The increase is primarily due to the
FDIC special assessment of $599,000. Also affecting the increase was
the difference of $71,000 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 March 31, 1997, was $22.25 per share compared to $19.00 at
March 31, 1996. Other non-interest expense was $429,000 for the nine
months ended March 31, 1997, an increase of $35,000 or 8.88% due to
various increases in several general operating accounts.
Income Tax Expense
Income tax expense amounted to $454,000 for the nine months ended
March 31, 1997, compared to $620,000 for the nine months ended March 31,
1996. Tax savings of $223,000 were recorded due to the FDIC special
assessment during the nine months ended March 31, 1997. The Company
recorded deferred income taxes of $75,000 for the nine months ended
March 31, 1997, 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.
May 7, 1997 E. FRANK GRIFFIN, III
Date: ______________________ By: _____________________________
E. Frank Griffin, III
Chief Executive Officer
and President
SHERRY L. BOYD
By: _____________________________
Sherry L. Boyd
Chief Financial Officer