1
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 March 31, 2000
Commission File Number 0-11928
AMERICAN BANCORP, INC.
----------------------------------------------------
(Exact name of registrant as specified in its charter)
LOUISIANA 72-0951347
- ------------------------------- ---------------------------
(State or other jurisdiction of (I R S Employer I. D. Number)
incorporation or organization)
328 EAST LANDRY STREET, OPELOUSAS, LA 70571-1579
- --------------------------------------- ----------
(Address of principal executive office) (Zip Code)
(318) 948-3056
---------------------------------------------------
(Registrant's telephone number, including area code)
NOT APPLICABLE
---------------------------------------------------------------
(Former name, address, fiscal year, if changed since last report)
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 preceding 12 months (or for such shorter periods 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 CORPORATE ISSUERS:
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practical date.
Common stock, $5 Par Value------117,697 shares as of April 26, 2000
2
AMERICAN BANCORP, INC.
(PARENT COMPANY ONLY)
BALANCE SHEET
(In Thousands Except for Per Share Data)
March 31, 2000 Dec 31, 1999
ASSETS -------------- -------------
(Unaudited) (Note 1)
Cash on deposit with subsidiary 28 32
Investment in subsidiary 9,683 9,468
Dividend receivable 0 0
Due from subsidiary 160 33
------- -------
TOTAL ASSETS $ 9,871 $ 9,533
======= =======
LIABILITIES
Accrued income taxes payable 154 27
Other liabilities 0 0
------- -------
TOTAL LIABILITIES $ 154 $ 27
------- -------
SHAREHOLDERS' EQUITY
Common stock, $5 par value; authorized
10,000,000 shares; issued 120,000 shares;
117,697 and 118,186 shares outstanding,
respectively 600 600
Surplus 2,150 2,150
Retained earnings 7,768 7,439
Treasury stock, 2,303 and 1,814 shares at cost,
respectively (130) (129)
Net unrealized gain (loss) on securities
available for sale, net of tax (671) (554)
------- -------
TOTAL SHAREHOLDERS' EQUITY $ 9,717 $ 9,506
------- -------
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY $ 9,871 $ 9,533
======= =======
See Notes to Consolidated Financial Statements.
3
AMERICAN BANCORP, INC.
CONSOLIDATED BALANCE SHEETS
(In Thousands Except for Per Share Data)
March 31, 2000 Dec 31, 1999
ASSETS -------------- -------------
(Unaudited) (Note 1)
Cash and Due From Banks 5,340 6,049
Federal Funds Sold 4,800 8,105
-------- --------
Total Cash and Cash Equivalents 10,140 14,154
Interest Bearing Deposits With Banks 991 1,090
Securities Held to Maturity 3,100 2,800
Securities Available for Sale 32,498 31,423
Loans - Net of allowance for loan losses 28,914 28,253
Bank Premises and Equipment 1,307 1,108
Other Real Estate 0 0
Accrued Interest Receivable 570 616
Other Assets 827 788
-------- --------
TOTAL ASSETS $ 78,347 $ 80,232
======== ========
LIABILITIES
Deposits:
Non-Interest Bearing Demand Deposits 27,129 23,803
Interest Bearing Deposits:
NOW Accounts 8,192 13,613
Money Market Accounts 2,215 2,351
Savings 9,436 9,399
Time Deposits $100,000 or More 4,685 4,618
Other Time Deposits 16,543 16,650
-------- --------
Total Deposits 68,200 70,434
Accrued Interest Payable 126 132
Other Liabilities 304 160
-------- --------
TOTAL LIABILITIES $ 68,630 $ 70,726
-------- --------
SHAREHOLDERS' EQUITY
Common Stock, $5 par value; authorized
10,000,000 shares; issued 120,000 shares;
117,697 and 118,186 shares outstanding,
respectively 600 600
Surplus 2,150 2,150
Retained Earnings 7,768 7,439
Treasury stock, 2,303 and 1,814 shares at cost,
respectively (130) (129)
Unrealized Gain (Loss) on Securities
Available for Sale, net of tax (671) (554)
-------- --------
TOTAL SHAREHOLDERS' EQUITY $ 9,717 $ 9,506
-------- --------
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY $ 78,347 $ 80,232
======== ========
See Notes to Consolidated Financial Statements.
4
AMERICAN BANCORP, INC.
(PARENT COMPANY ONLY)
INCOME STATEMENT
(Unaudited)
(In Thousands)
Three Months Ended
March 31,
------------------
2000 1999
--------- --------
INCOME FROM SUBSIDIARY
Dividends from bank subsidiary $ 0 $ 50
OPERATING EXPENSES
Directors fees 3 3
Other expenses 1 1
----- -----
TOTAL EXPENSES 4 4
----- -----
Earnings before income tax
and equity in undistributed earnings of
subsidiary (4) 46
Provision for income taxes 0 0
----- -----
Earnings before equity in undistributed
earnings of subsidiary (4) 46
Equity in undistributed earnings of
subsidiary 333 218
----- -----
Net Income $ 329 $ 264
===== =====
See Notes to Consolidated Financial Statements.
5
AMERICAN BANCORP, INC.
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(In Thousands Except for Per Share Data)
Three Months Ended
March 31,
------------------ INCREASE
2000 1999 (DECREASE)
INTEREST INCOME:
Interest and fees on loans $ 667 $ 600 67
Interest on investment securities:
Taxable 416 355 61
Tax-Exempt 103 77 26
Other Interest 91 133 (42)
------- ------- -------
TOTAL INTEREST INCOME 1,277 1,165 112
------- ------- -------
INTEREST EXPENSE:
Interest on deposits 371 362 9
Interest on short-term borrowings 0 0 0
------- ------- -------
TOTAL INTEREST EXPENSE 371 362 9
------- ------- -------
NET INTEREST INCOME 906 803 103
Provision for possible loan losses 0 0 0
------- ------- -------
Net Interest Income after provision for
possible loan losses 906 803 103
------- ------- -------
NON-INTEREST INCOME:
Service charges on deposit accounts 133 138 (5)
Investment securities gains (losses) 0 0 0
Other 51 29 22
------- ------- -------
TOTAL NON-INTEREST INCOME 184 167 17
------- ------- -------
NON-INTEREST EXPENSE:
Salaries and Employee Benefits 320 297 23
Net Occupancy Expense 127 122 5
Net cost of operation of O.R.E.O 0 (2) 2
Other 195 190 5
------- ------- -------
TOTAL NON-INTEREST EXPENSE 642 607 35
------- ------- -------
INCOME BEFORE INCOME TAXES 448 363 85
Provision for income taxes 119 99 20
------- ------- -------
NET INCOME $ 329 $ 264 65
======= ======= =======
Net income per share of common stock $ 2.80 $ 2.23 $ 0.57
======= ======= =======
See Notes to Consolidated Financial Statements
6
AMERICAN BANCORP, INC.
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
For the Three Month Periods Ended March 31, 2000 & 1999
(Unaudited)
(In Thousands)
ACCUMULATED
OTHER COMPREHENSIVE
STOCK RETAINED COMPREHENSIVE TREASURY INCOME
AMOUNT SURPLUS EARNINGS INCOME STOCK TOTAL
-------- ------- -------- ------------- -------- -------------- -------
Balance December 31, 1998 $ 600 $ 2,150 $ 6,524 $ 256 ($ 85) $ 0 $ 9,445
Comprehensive income
Net Income (Loss) -- 264 -- -- 264 264
Other comprehensive income,
net of tax:
Change in Unrealized gains
(losses) on securities
available for sale -- -- (76) -- (76) (76)
-------
Total comprehensive income -- -- -- -- $ 188
=======
Purchase of treasury stock -- -- -- (15) (15)
Dividends paid -- 0 -- -- 0
------- ------- ------- ------- ------- -------
Balance, March 31, 1999 $ 600 $ 2,150 $ 6,788 $ 180 ($ 100) $ 9,618
======= ======= ======= ======= ======= =======
Balance December 31, 1999 $ 600 $ 2,150 $ 7,439 ($ 554) ($ 129) $ 0 $ 9,506
Comprehensive income
Net Income (Loss) -- 329 -- -- 329 329
Other comprehensive income,
net of tax:
Change in Unrealized gains
(losses) on securities
available for sale -- -- (117) -- (117) (117)
-------
Total comprehensive income -- -- -- -- $ 212
=======
Purchase of treasury stock -- -- -- (1) (1)
Dividends paid -- 0 -- -- 0
------- ------- ------- ------- ------- -------
Balance, March 31, 2000 $ 600 $ 2,150 $ 7,768 ($ 671) ($ 130) $ 9,717
======= ======= ======= ======= ======= =======
See Notes to Consolidated Financial Statements
7
AMERICAN BANCORP, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(In Thousands)
Three Months Ended March 31,
----------------------------
2000 1999
-------- --------
OPERATING ACTIVITIES
Net income $ 329 $ 264
Adjustments to reconcile net income to net cash
provided by operating activities:
Premium amortization, net of accretion on
investment securities (21) (2)
Depreciation 32 34
(Gain) loss on disposal of assets 0 0
(Increase) decrease in assets:
Other real estate owned 0 0
Accrued interest receivable 47 (28)
Other assets 23 30
Increase (decrease) in liabilities:
Accrued interest payable (6) (14)
Other liabilities 144 84
-------- --------
Net cash provided by operating activities $ 548 $ 368
-------- --------
INVESTING ACTIVITIES
(Increase) decrease in interest bearing deposits with banks $ 99 ($ 99)
Proceeds from sales & maturities of available for sale securities 832 1,937
Proceeds from sales & maturities of held to maturity securities 0 500
Purchases of available for sale securities (2,064) (6,189)
Purchases of held to maturity securities (300) (699)
(Increase) decrease in loans (660) 2,427
Purchases of property & equipment (232) (22)
Other (2) (3)
-------- --------
Net cash provided by (used in) investing activities ($ 2,327) ($ 2,148)
-------- --------
FINANCING ACTIVITIES
Increase (decrease) in demand deposits, transaction
accounts and savings (2,194) 1,375
Increase (decrease) in time deposits (40) 733
Dividends paid 0 0
Purchase of treasury stock (1) (16)
-------- --------
Net cash provided by (used in) financing activities ($ 2,235) $ 2,092
-------- --------
Increase (decrease) in cash and cash equivalents ($ 4,014) $ 312
Cash and cash equivalents at beginning of year 14,154 12,883
-------- --------
Cash and cash equivalents at end of period $ 10,140 $ 13,195
======== ========
SUPPLEMENTAL DISCLOSURES:
Cash payments for:
Interest expense $ 377 $ 376
======== ========
Income taxes $ 0 $ 0
======== ========
See Notes to Consolidated Financial Statements
8
AMERICAN BANCORP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
March 31, 2000
NOTE 1 - A BASIS OF PRESENTATION
The accompanying unaudited consolidated financial statements
have been prepared in accordance with generally accepted
principles of accounting for instructions to Form 10-Q and
Article 10 of Regulations S-X. Accordingly, they do not include
all of the information and footnotes required by generally
accepted accounting principles for complete financial statements.
In the opinion of management, all adjustments (consisting of
normal recurring accruals) considered necessary for a fair
presentation have been included. Operating results for the three
month period ended March 31, 2000 are not necessarily indicative
of the results that may be expected for the year ended December
31, 2000.
The balance sheet at December 31, 1999 has been derived from
the audited financial statements at that date, but does not
include all of the information and footnotes required by
generally accepted accounting principles for complete financial
statements.
For further information, refer to the consolidated financial
statements and footnotes thereto included in American Bancorp,
Inc.'s annual report on Form 10-K for the year ended December 31,
1999.
NOTE 2 - IMPAIRED LOANS
On January 1, 1995 the Company adopted Statement of Financial
Accounting Standards (SFAS) No. 114, "Accounting by Creditors for
Impairment of a Loan." The adoption of SFAS No. 114 did not have
a material impact on the financial condition or operating results
of the Company. Interest payments received on impaired loans are
applied to principal if there is doubt as to the collectibility
of the principal; otherwise, these receipts are recorded as
interest income.
As it relates to in-substance foreclosures, SFAS No. 114 requires
that a creditor continue to follow loan classification on the
balance sheet unless the creditor receives physical possession of
the collateral. The Company had no in-substance foreclosures in
foreclosed assets to transfer to nonperforming loans and no
related reserve for losses to transfer to the reserve for
possible loan losses.
NOTE 3 - RELATED PARTIES
Directors, executive officers, and 10% shareholders and
their related interest had loans outstanding totaling $1,329,000
at March 31, 2000.
NOTE 4 - EARNING PER SHARE
The earnings per share computations are based on weighted
average number of shares outstanding during each quarter of
117,704 and 118,361 for the quarters ended March 31, 2000 and
1999, respectively.
9
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
Management's Discussion presents a review of the major factors and trends
affecting the performance of the Company and its bank subsidiary and should be
read in conjunction with the accompanying consolidated financial statements and
notes.
OVERVIEW
The Company reported net income of $329,000 for the first three months of
2000 compared to $264,000 for the same period of 1999. On a per share basis, the
net income was $2.80 for the first three months of 2000 compared to $2.23 for
the same period of 1999. The Company recorded a provision for possible loan
losses of $0 for the three months ended March 31, 2000 and 1999, respectively.
Net interest income increased 12.8% to $906,000 for the first three months of
2000 compared to $803,000 for the same period of 1999.
Total assets were $78,347,000 at March 31, 2000, a decrease of $1,885,000
from December 31, 1999. Loans increased by $661,000 or 2.34% from $28,253,000
at December 31, 1999 to $28,914,000 at March 31, 2000. Deposits decreased by
$2,234,000 or 3.17% from $70,434,000 at December 31, 1999 to $68,200,000 at
March 31, 2000.
RESULTS OF OPERATIONS
NET INTEREST INCOME. Net interest income for the three months ended March
31, 2000 totaled $906,000, a $103,000 increase from the same period in 1999.
Factors contributing to this increase include an increase in the average balance
of investment securities and of loans as well as an increase in the average rate
earned on taxable investment securities and on loans. This positive effect was
partially negated by a decrease in the average balance of federal funds sold.
The overall effect of volume and rate changes on net interest income during the
three month period ended March 31, 2000 was favorable.
PROVISION FOR POSSIBLE LOAN LOSSES. The Company recorded no provision for
possible loan losses for both the first three months of 2000 and 1999. The
absence of a provision is the result of continued improvements in asset quality
and low net charge offs of loans. As a percentage of outstanding loans, the
allowance for possible loan losses was 1.93% and 2.01% at March 31, 2000 and
December 31, 1999, respectively. The provision is determined by the level of net
charge offs, the size of the loan portfolio, the level of nonperforming loans,
anticipated economic conditions, and review of financial condition of specific
customers.
NONINTEREST INCOME. For the first three months of 2000 noninterest income
increased $17,000 or 10.2% compared to the same period of 1999.
Other non-interest income increased by $22,000 or 75.9% compared to the same
period of 1999. Part of this increase is the result of an increase in
miscellaneous income for the first quarter of 2000.
There were no securities gains in the three month periods ended March 31, 2000
and 1999.
10
NONINTEREST EXPENSE. For the first three months of 2000 noninterest
expense increased $35,000 or 5.8% compared to the same period in 1999.
Salaries and employee benefits, the largest component of noninterest expense,
increased by $23,000 or 7.7% for the first three months of 2000 as compared to
the same period in 1999. This increase was attributed to an overall increase in
salaries.
INCOME TAXES. The Company recorded provisions for income taxes of $119,000
for the three month period ended March 31, 2000 as compared to $99,000 for the
same period of 1999.
FINANCIAL CONDITION
LOANS. Loans were $28,914,000 at March 31, 2000; up by $661,000 or 2.34%
from December 31, 1999.
TABLE I - COMPOSITION OF LOAN PORTFOLIO
March 31, 2000 Dec 31, 1999
-------------- ------------
Commercial, Financial and Agricultural Loans $ 6,646 $ 7,326
Real Estate Construction Loans 507 949
Real Estate Mortgage Loans 17,807 15,809
Consumer Loans 4,523 4,748
Industrial Revenue Bonds 0 0
------- -------
TOTAL LOANS $29,483 $28,832
Allowance for possible loan losses 569 579
Unearned income 0 0
------- -------
$28,914 $28,253
======= =======
11
SECURITIES HELD TO MATURITY. Securities held to maturity were $3,100,000
at March 31, 2000; up by $300,000 or 10.71% from December 31, 1999.
SECURITIES AVAILABLE FOR SALE. Securities available for sale were
$32,498,000 at March 31, 2000; up by $1,075,000 or 3.42% from December 31, 1999.
TABLE II - INVESTMENT SECURITIES
A comparison of the book value and estimated market value of investment
securities is as follows:
March 31, 2000
------- ------- ------- -------
HELD-TO-MATURITY AVAILABLE-FOR-SALE
AMORT MARKET AMORT MARKET
COST VALUE COST VALUE
U.S. Treasury $ 2,600 $ 2,570 $ 3,002 $ 2,999
U.S. Government Agencies 500 494 13,910 13,410
Mortgaged-backed securities 0 0 6,879 6,656
State & Political Subdivisions 0 0 9,575 9,284
Equity Securities 0 0 149 149
------- ------- ------- -------
TOTAL $ 3,100 $ 3,064 $33,515 $32,498
======= ======= ======= =======
December 31, 1999
------- ------- ------- -------
HELD-TO-MATURITY AVAILABLE-FOR-SALE
AMORT MARKET AMORT MARKET
COST VALUE COST VALUE
U.S. Treasury $ 2,300 $ 2,276 $ 3,504 $ 3,501
U.S. Government Agencies 500 496 12,912 12,536
Mortgaged-backed securities 0 0 7,147 6,931
State & Political Subdivisions 0 0 8,550 8,306
Equity Securities 0 0 149 149
------- ------- ------- -------
TOTAL $ 2,800 $ 2,772 $32,262 $31,423
======= ======= ======= =======
12
TABLE III - NONPERFORMING ASSETS
Non-performing assets include nonaccrual loans, loans which are contractually 90
days past due, restructured loans, and foreclosed assets. Restructured loans are
loans which, due to a deteriorated financial condition of the borrower, have a
below market yield. Interest payments received on nonperforming loans are
applied to reduce principal if there is doubt as to the collectibility of the
principal; otherwise, these receipts are recorded as interest income. Certain
nonperforming loans are current as to principal and interest payments are
classified as nonperforming because there is a question concerning full
collectibility of both principal and interest.
Nonperforming assets totaled $6,000 at March 31, 2000, a $103,000 (94.5%)
decrease from December 31, 1999. The composition of nonperforming assets are
illustrated below:
Non-Performing Loans: March 31, 2000 Dec 31,1999
-------------- -----------
Loans on Non-Accrual $ 0 $ 70
Restructured loans which are not
on non-accrual 6 39
---- ----
Total nonperforming loans 6 109
Other Real Estate and repossessed assets
received in complete or partial
satisfaction of loan obligation 0 0
---- ----
TOTAL NONPERFORMING ASSETS $ 6 $109
==== ====
Loans past due 90 days or more as to
principal or interest, but not on
non-accrual $ 5 $ 8
==== ====
TABLE IV - ANALYSIS OF ALLOWANCE FOR LOAN LOSSES
March 31, 2000 Dec 31,1999
-------------- -----------
Beginning balance $ 579 $ 596
Charge-offs:
Commercial, financial and agricultural loans -- (13)
Real estate - construction loans -- --
Real estate - mortgage loans -- --
Installment loans to individuals (10) (7)
----- -----
Total charge-offs (10) (20)
----- -----
Recoveries:
Commercial, financial and agricultural loans -- --
Real estate - construction loans -- --
Real estate - mortgage loans -- --
Installment loans to individuals -- 3
----- -----
Total recoveries 0 3
----- -----
Net (charge-offs) recovery (10) (17)
----- -----
Provision charged against income -- --
----- -----
Balance at end of period $ 569 $ 579
===== =====
Ratio of net (charge-offs) recoveries during the period to average loans
outstanding during the period (0.03)% (0.06)%
===== =====
The present level of the allowance for loan losses is considered adequate to
absorb future potential loan losses. In making this determination, management
considered asset quality, the level of net loan charge-offs, as well as current
economic conditions and market trends.
13
TABLE V - ALLOCATION OF THE ALLOWANCE FOR LOAN LOSSES
The allowance for possible loan losses has been allocated according to the
amount deemed to be reasonably necessary to provide for the possibility of
losses being incurred within the following categories of loans.
March 31, 2000 December 31, 1999
------ ---------- ------ ----------
% OF LOANS % OF LOANS
TO TOTAL TO TOTAL
AMOUNT LOANS AMOUNT LOANS
------ ---------- ------ ----------
Commercial, financial and
agricultural loans $131 23% $120 25%
Real estate - construction loans 11 2% 5 3%
Real estate - mortgage loans 342 60% 238 55%
Consumer loans 85 15% 216 17%
Industrial revenue bonds 0 0% 0 0%
---- ---- ---- ----
$569 100% $579 100%
==== ==== ==== ====
DEPOSITS. As of March 31, 2000 total deposits have decreased by $2,234,000
or 3.17% from December 31, 1999. Noninterest bearing deposits increased by
$3,326,000 or 13.97% from December 31, 1999 to March 31, 2000. Interest bearing
deposits decreased by $5,560,000 or 11.92% from December 31, 1999 to March 31,
2000.
CAPITAL. Shareholders' equity totaled $9,717,000 at March 31, 2000,
compared to $9,506,000 at December 31, 1999. The increase is primarily the
result of net income during the current quarter. Risk-based capital and leverage
ratios for the Company and the bank subsidiary exceed the ratios required for
the designation as a "well-capitalized" institution under regulatory guidelines.
TABLE VI - CAPITAL RATIOS
-------------- ------------
AMERICAN BANK & TRUST COMPANY March 31, 2000 Dec 31, 1999
(Bank subsidiary) -------------- ------------
Risk-based capital:
Tier 1 risk-based capital ratio 29.25% 28.57%
Total risk-based capital ratio 30.50% 29.82%
Leverage ratio 13.29% 13.11%
PART II. OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
In the normal course of business, the bank becomes involved in legal
proceedings. It is the opinion of management that the resulting liability, if
any, for pending litigation is negligible.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
NONE
(b) Reports on Form 8-K
NONE
14
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 to sign on behalf of the registrant.
AMERICAN BANCORP, INC.
-------------------------
(Registrant)
May 5, 2000 /s/ Salvador L. Diesi
- --------------------- --------------------------
DATE Salvador L. Diesi
Chairman of the Board/President
May 5, 2000 /s/ Ronald J. Lashute
- --------------------- --------------------------
DATE Ronald J. Lashute
Secretary/Treasurer
of the Board
15
INDEX TO EXHIBITS
EXHIBIT
NUMBER DESCRIPTION
- -------- -----------
27 Financial Data Schedule