EXHIBIT 13.1
[AMERICAN BANCORP, INC. LOGO]
- --------------------------------------------------------------------------------
2001 ANNUAL REPORT
AMERICAN BANCORP, INC.
POST OFFICE BOX 1819
OPELOUSAS, LOUISIANA 70571-1819
NATURE OF BUSINESS
American Bancorp, Inc. is a one-bank holding company whose sole
subsidiary is American Bank and Trust Company, a commercial bank whose general
business is that of providing banking services to the Opelousas, Louisiana area.
The Bank serves the needs of the area through 45 employees at six banking
locations. The main office is located at the corner of Landry Street and Union
Street in Opelousas. Branch banking-offices are located in the parish of St.
Landry in the communities of Lawtell, Krotz Springs, Port Barre and an office on
Creswell Lane in South Opelousas. In addition, the Bank has a branch located on
Moss Street, in Lafayette, Louisiana.
MARKET PRICE AND DIVIDENDS DECLARED
<Table>
<Caption>
DIVIDENDS
YEAR QUARTER HIGH LOW PER SHARE
---- ------- ----- ---- ---------
2001 First $ 71 $ 71 $ --
Second 74 74 --
Third 76 76 --
Fourth 80 80 2.00
2000 First $ 61 $ 61 $ --
Second 62 62 --
Third 64 64 --
Fourth 68 30 1.70
</Table>
Note: The primary market area for American Bancorp, Inc.'s common stock is the
Opelousas, Louisiana area with American Bank and Trust Company acting as
registrar and transfer agent. There were approximately 508 shareholders of
record at December 31, 2001.
Source of market price - American Bank & Trust Company acts as the
transfer agent for the Company. The stock is thinly traded and the price ranges
are based on stated sales price to the transfer agent, which does not represent
all sales.
ANNUAL SHAREHOLDERS' MEETING
The annual meeting of the shareholders of American Bancorp, Inc. will
be held on April 10, 2002 in the Board of Directors Room at the Operations
Center located at 321 East Landry Street, Opelousas, Louisiana.
FORM 10-K ANNUAL REPORT
American Bancorp, Inc. files an annual report with the Securities and
Exchange Commission on Form 10-K. A copy of the report filed on Form 10-K will
be sent free of charge to any shareholder by writing to: Ronald J. Lashute,
Chief Executive Officer and Executive Vice-President, American Bank and Trust
Company, Post Office Box 1819, Opelousas, Louisiana 70571-1819.
-1-
FINANCIAL SUMMARY
(In thousands of dollars except per share data and ratios)
<Table>
<Caption>
2001 2000 1999
------------ ------------ ------------
FOR THE YEAR
Net income ..................................... $ 1,136 $ 1,203 $ 1,086
Return on average shareholders' equity ......... 9.59% 11.91% 11.38%
Return on average total assets ................. 1.35% 1.54% 1.42%
AT YEAR END
Total assets ................................... $ 91,590 $ 82,760 $ 80,232
Total earning assets ........................... $ 83,525 $ 73,116 $ 71,670
Total loans .................................... $ 37,146 $ 32,080 $ 28,253
Total deposits ................................. $ 78,688 $ 71,318 $ 70,434
Total shareholders' equity ..................... $ 12,265 $ 11,076 $ 9,506
Common shares outstanding ...................... 116,589 117,630 117,712
PER SHARE
Net income ..................................... $ 9.71 $ 10.23 $ 9.21
Book value ..................................... $ 105.20 $ 94.16 $ 80.75
Cash dividends declared ........................ $ 2.00 $ 1.70 $ 1.45
CAPITAL RATIOS
Total risk-based capital ratio ................. 28.41% 30.25% 29.82%
Leverage ratio ................................. 14.14% 14.14% 13.11%
</Table>
-2-
CONTENTS
<Table>
<Caption>
PAGE
Financial Summary.................................................................................................... 2
A Message to the Shareholders........................................................................................ 4
Management's Discussion and Analysis of Financial Condition and Results of Operations................................ 5 - 27
Independent Auditors' Report ....................................................................................... 28
Consolidated balance sheets.......................................................................................... 29 and 30
Consolidated statements of income.................................................................................... 31
Consolidated statements of changes in shareholders' equity........................................................... 33 and 34
Consolidated statements of cash flows................................................................................ 35 and 36
Notes to consolidated financial statements........................................................................... 37 - 56
Selected quarterly financial data (unaudited)........................................................................ 57
Officers and directors of American Bank & Trust Company.............................................................. 59
Officers and directors of American Bancorp, Inc...................................................................... 60
</Table>
-3-
TO THE SHAREHOLDERS
We are proud to report to you another successful year for American
Bancorp, Inc. and its sole subsidiary, American Bank & Trust Company. Our growth
and income goals were both achieved this past year. Average assets grew 7.57%
and were $83,859,057 at year end. Net income was $1,135,999, down only $67,257
from our record year earnings in 2000. As a result of earnings, return on
average assets was 1.35% and return on equity was 9.59%.
Earnings per share this past year was $9.71, as compared to $10.23 for
2000. The company's book value per share increased to $105.20 at year end
compared to $94.16 at the end of 2000. Cash dividends declared and paid to
shareholders in 2001 was $2.00 per share, an increase of more than 17% over the
2000 dividend.
As the Bank's assets continued to grow in 2001, the quality of the
assets remains remarkably good. Nonperforming assets remained low at $32,199 or
less than 0.04% of total assets at year end, and net charged off loans were only
0.05% of average total loans. The Bank also remains well capitalized with a very
healthy leverage capital ratio of 14.14%.
Construction of the new Lafayette location on Moss Street was completed
and the facility opened in July of 2001. Technological enhancements were
continued throughout the year.
On behalf of the Board of Directors, management and employees, we
pledge to continue to meet your expectations and thank you for the opportunity
to serve you.
/s/ SALVADOR L. DIESI
Salvador L. Diesi, Sr., Chairman of the Board
and President
/s/ RONALD J. LASHUTE
Ronald J. Lashute, Chief Executive Officer and
Executive Vice-President
-4-
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
SUMMARY OF OPERATIONS FOR THE LAST FIVE YEARS
(In thousands of dollars except per share data and ratios)
<Table>
<Caption>
YEAR ENDED DECEMBER 31,
------------------------------------------------------------------
2001 2000 1999 1998 1997
---------- ---------- ---------- ---------- ----------
Operating Data:
Interest income ...................... $ 5,326 $ 5,210 $ 4,819 $ 4,657 $ 4,483
Interest expense ..................... 1,530 1,545 1,511 1,446 1,398
---------- ---------- ---------- ---------- ----------
Net interest income .................. 3,796 3,665 3,308 3,211 3,085
Provision for possible loan
losses ............................ 42 11 -- -- --
---------- ---------- ---------- ---------- ----------
Net interest income after
provision for loan losses ......... 3,754 3,654 3,308 3,211 3,085
Non-interest income .................. 665 695 693 612 606
Non-interest expense ................. 2,904 2,720 2,512 2,407 2,339
---------- ---------- ---------- ---------- ----------
Net income before taxes .............. 1,515 1,629 1,489 1,416 1,352
Provision for income taxes ........... 379 426 403 408 405
---------- ---------- ---------- ---------- ----------
Net income ........................... $ 1,136 $ 1,203 $ 1,086 $ 1,008 $ 947
========== ========== ========== ========== ==========
Per share data:
Weighted average number of
shares outstanding ................ 117,016 117,673 117,884 118,965 119,997
Net income ........................... $ 9.71 $ 10.23 $ 9.21 $ 8.47 $ 7.90
Cash dividends declared .............. $ 2.00 $ 1.70 $ 1.45 $ 1.25 $ 1.10
Book value at end of year ............ $ 105.20 $ 94.16 $ 80.75 $ 79.75 $ 70.96
Selected year-end balances:
Loans ................................ $ 37,751 $ 32,659 $ 28,832 $ 28,058 $ 28,435
Deposits ............................. $ 78,688 $ 71,318 $ 70,434 $ 63,819 $ 55,857
Equity ............................... $ 12,265 $ 11,076 $ 9,505 $ 9,446 $ 8,512
Total assets ......................... $ 91,590 $ 82,760 $ 80,232 $ 73,666 $ 64,621
Selected average balances:
Average assets ....................... $ 83,859 $ 77,954 $ 76,452 $ 68,472 $ 64,384
Average shareholders' equity ......... $ 11,846 $ 10,104 $ 9,536 $ 8,942 $ 8,099
Selected ratios:
Return on average assets ............. 1.35% 1.54% 1.42% 1.47% 1.47%
Return on average shareholders'
equity ............................. 9.59% 11.91% 11.38% 11.27% 11.70%
Dividend payout to net income
per share ......................... 20.60% 16.62% 15.74% 14.76% 13.92%
Average equity/average assets ........ 14.13% 12.96% 12.47% 13.06% 12.58%
Tier 1 risk-based capital ratio ...... 27.16% 29.00% 28.57% 27.47% 26.13%
Total risk-based capital ratio ....... 28.41% 30.25% 29.82% 28.72% 27.38%
Leverage ratio ....................... 14.14% 14.14% 13.11% 13.36% 12.97%
</Table>
-5-
Management's discussion and analysis of financial condition and results
of operations should be read in conjunction with the accompanying financial
statements and notes.
OVERVIEW
The Company reported net income of $1,135,999 in 2001 compared to
$1,203,256 in 2000 and $1,085,544 in 1999. Interest income has increased over
the last three years. The increase for 2001 was $.116 million and an increase of
$.391 million from 1999 to 2000. Interest expense decreased in 2001. The
decrease for 2001 was $.015 million and an increase of $.033 million from 1999
to 2000. Net income before taxes decreased in 2001 by $.144 million from 2000.
It increased $.141 million from 1999 to 2000. Overall net income has been fairly
consistent over the three year period.
Average total assets continue to increase. These assets have grown
7.6%, 2.0% and 11.7% in 2001, 2000 and 1999, respectively. This increase is a
result of the growth in all categories of deposits in 2001 as compared to 2000
and the growth of interest bearing demand deposits and non-interest bearing
demand deposits in 2000. Non-interest bearing demand deposits increased $1.855
million in 2001 or 7% over the 2000 balance and an increase of $1.638 million in
2000 or 7% over the 1999 balance. Interest bearing demand deposits increased
$.647 million in 2001 or 4% over the 2000 balance and an increase of $.792
million in 2000 or 7% over the 1999 balance. Savings deposits increased $1.268
million in 2001 or 14% over the 2000 balance and a decrease of $.498 million in
2000 or 5% over the 1999 balance. Time deposits increased $3.600 million or 17%
in 2001 over the 2000 amounts and decreased $1.061 million or 5% in 2000 over
the 1999 amounts.
The year end balance sheet reflects an increase of $8.830 million or
11% in total assets. Federal funds sold increased $4.150 million or 87% from
2000. Securities available for sale reflected an increase of $3.982 million or
13% from 2000. During the same period, net loans increased by $5.065 million or
16%. In addition, total deposits increased $7.369 million or 10% in comparing
2001 to 2000. For the same period, there was an increase of $1.188 million in
stockholders' equity or 11% in comparing 2001 to 2000.
STATEMENT OF INCOME ANALYSIS
Net interest income on a taxable-equivalent basis was $5.559 million in
2001, an increase of $.136 million, or 3% compared to 2000. In 2000, net
interest income was $3.878 million, an increase of $.379 million or 11% over the
prior year. The net interest margin for 2001 was 5.2% compared to 5.4% in 2000
and 5.0% for 1999. Table 1 summarizes average balances, income and average
yields on earning assets and expense and average rates paid on interest bearing
liabilities. Table 2 analyzes the change in net interest income for the two most
recent annual intervals.
The increase in the average balances of loans and short-term
investments had a positive effect on the change in net interest margin from 2000
to 2001. However, this effect was partially negated by the decrease in average
rates of short-term investments, loans, and securities available for sale. The
decrease in the average rates on demand, time and savings deposits also had a
positive impact on the change in the net interest margin from 2000 to 2001.
PROVISION FOR POSSIBLE LOAN LOSSES. The provision for possible loan losses was
$42,000 in 2001, $10,500 in 2000 and -0- in 1999. The provision increased
$31,500 or 300% from 2000 to 2001. The increase from 1999 to 2000 was $10,500.
As a percentage of outstanding loans, the allowance for possible loans losses
was 1.6%, 1.8% and 2.0% at December 31, 2001, 2000 and 1999, respectively. The
annual 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.
-6-
NON-INTEREST INCOME. Non-interest income decreased only $31,000 or 4% from 2000
to 2001. There was an increase of $3,000 or less than .5% from 1999 to 2000. The
Bank's management realizes that non-interest income will become increasingly
important as deregulation continues to impact the net interest margin;
therefore, we are continuously evaluating new opportunities for fee revenues
through proper pricing of services and the development of new sources of
non-interest revenue.
NON-INTEREST EXPENSE. Non-interest expense increased $184,000 or 7% in 2001 from
2000. The increase from 1999 to 2000 was $208,000 or 8%. There is no one
particular expense category that has experienced a large increase in 2001. The
increase is spread over a large number of accounts, with the largest individual
increases being in employee salaries in the amount of $49,000 and employee
medical insurance in the amount of $36,000. In comparing 2001 to 2000 and 1999,
there were immaterial variances between years. These increases are mainly due to
increases in overall salaries and insurance expense for the three year period.
INCOME TAXES. The Company recorded income tax expense of $379,201 in 2001
compared to $426,328 in 2000 and $402,933 in 1999. Income tax expense decreased
$47,000 in 2001 or 11%. There was an increase in 2000 of $23,000 or 6% over
1999.
Net future deductible temporary differences at December 31, 2001 was
$89,366. The allowance for loan losses represents $31,872 and the deferred
executive compensation represents $51,496 of the future deductible temporary
differences. The provision for possible loan losses which contributed to the
allowance has been recognized as expense for financial reporting purposes but is
not deductible for federal income tax purposes until the loans are charged off.
The deferred executive compensation is an expense for financial reporting
purposes but is not deductible until actually paid. Valued at the 34% federal
statutory tax rate, the net future deductible amounts, if ultimately recognized,
would generate tax benefits of $89,366. The primary deferred liability as of
December 31, 2001 is related to accumulated depreciation in the amounts of
$56,365. The deferred tax related to unrealized appreciation and loss on
available for sale securities is reflected in shareholders equity. The net
deferred tax asset of $33,001 is included in other assets at December 31, 2001.
BALANCE SHEET AND CAPITAL FUNDS ANALYSIS
Investment securities are a major use of funds by the Bank. The balance
at December 31, 2001 was $37,355,276 which represented a $1,391,591 or 4%
increase from the $35,963,685 balance outstanding at December 31, 2000.
Investment securities serve several purposes. A portion of investment securities
provides liquidity or secondary reserves, which management can use, if
necessary, to meet loan demand or deposit withdrawals. Investment securities,
especially obligations of state and political subdivisions, provide for schools,
road construction, sewers, and various other projects. The Bank invests a
portion of these funds in the market area as a service to the community in which
it operates. The remainder of these funds are invested in obligations of the
United States Government or its agencies. It is management's policy to minimize
risk in investments and provide liquidity by investing in short-term maturities
with quality ratings. A substantial portion of the investment portfolio is
pledged on public deposits (30%) at December 31, 2001, this is less than the
2000 pledged percentage of 39%. The amount of public funds on deposit has
decreased slightly during the past year and management anticipates this source
of deposits will not grow substantially in the future.
The Bank's primary use of funds is to meet loan demand. Loans, net of
unearned income, were $37,750,770 at December 31, 2001, compared to $32,659,608
at December 31, 2000. This $5,091,162 or 16% increase is the result of increased
market share in the market area.
-7-
The Bank attracts deposits from consumers and businesses, and also
utilizes its access to the money markets to purchase funds to support the asset
side of the balance sheet. The two primary sources of funds may be classified as
"interest bearing deposits" and "non-interest bearing deposits." "Interest
bearing deposits" consist of time deposits, savings accounts, NOW accounts and
Money Market deposit accounts. The largest source of "non-interest bearing
deposits" is demand deposits, which consist of gross demand deposits less
reciprocal balances with our correspondent banks.
As of December 31, 2001, total deposits increased $7,369,453 or 10%
from December 31, 2000. The most significant change in deposits from 2000 to
2001 was the increase in interest bearing deposit accounts of $5,514,939 or 12%.
The increase in interest bearing accounts is attributable to an increase in
personal savings accounts of $1,268,168, an increase in individual and
commercial certificates of deposits with balances greater than $100,000 of
$2,131,852, and an increase in individual and commercial certificates of
deposits with balances less than $100,000 of $1,467,962.
Shareholders' equity increased $1,188,261 or 11% from December 31, 2000
to December 31, 2001. Retained earnings increased $902,751 or 11% in 2001. The
accumulated other comprehensive income increased $363,616 from December 31, 2000
to December 31, 2001 due to the effect of interest rate reductions on the
investment portfolio. The equity or book value of the Bank is the shareholders'
investment in the Bank resulting from the sale of stock and the accumulation of
earnings retained by the Bank. The strength of the Bank and its ability to grow
depends to a great extent on management's ability to maintain a corresponding
growth in shareholders' equity.
We declared cash dividends in the amount of $233,248 or $2.00 per share
in 2001 and $199,983 or $1.70 per share in 2000. Dividends of $170,683 or $1.45
per share were declared in 1999.
There were 1,041 shares of treasury stock purchased in 2001. This
brings the total of treasury stock owned to 3,411 with a cost of $212,743. The
Holding Company plans to continue buying treasury stock as shares become
available.
NONPERFORMING ASSETS AND PAST DUE LOANS. Nonperforming assets are loans carried
on a nonaccrual basis, those classified as restructured loans (loans with
below-market interest rates or other concessions due to the deteriorated
financial condition of the borrower), repossessed real estate, property in the
process of being repossessed and repossessed movable property. A loan is placed
on nonaccrual when, in management's judgment, the borrower's financial condition
has deteriorated to the point that his ability to service the principal and/or
interest is in doubt. At that time, any accrued interest on the loan is reversed
and accruing of interest is discontinued. The Company's nonperforming assets
consist primarily of a small number of installment loans.
Nonperforming assets at December 31, 2001 were $32,199. There was an
insignificant change from 2000 to 2001 in nonperforming assets. There was a
significant decrease of $75,106 or 69% in the balance from 1999 to 2000. This
resulted primarily from collection efforts on nonaccrual loans. The Bank has
experienced little activity in other real estate for the three year period ended
December 31, 2001. Management anticipates this favorable trend to continue.
Loans are considered to be impaired when it is probable that all
amounts due in accordance with the contractual terms will not be collected.
Included in nonaccrual loans are loans that are considered to be impaired, which
totaled $7,740 at December 31, 2001 and $-0- at December 31, 2000. The allowance
for loan losses related to these loans was $2,000 and $-0- at December 31, 2001
and 2000, respectively.
-8-
LIQUIDITY. Liquidity is the ability to ensure that adequate funds are available
to satisfy contractual liabilities, fund operations, meet withdrawal
requirements of depositors, and provide for customers' credit needs in a timely
manner. The liquidity position of the Bank is founded on a stable base of core
deposits. The primary source of liquidity for the Bank is its short-term
investments. The Bank has overnight fund lines with correspondent banks
providing additional sources of liquidity. Securities available for sale also
provide a major source of liquidity to the Bank, as do the cash flows from
repayments and maturities of its loan portfolio. The franchise from which the
Bank operates allows access to a broad base of retail customers, and management
has been successful at attracting additional deposits when a continuing need for
further funding has arisen. The Bank's core deposit base is supplemented by
public fund time deposits and federal funds obtained through correspondent
relationships.
At the Parent Company (American Bancorp, Inc.) level, cash is needed to
fund operations and to pay dividends. During 2001, the Parent Company received
$321,300 from the Bank in dividends. The majority of these funds were used to
pay dividends to stockholders and to repurchase outstanding Company stock.
The purpose of liquidity management is to assure that the Bank has the
ability to raise funds to support asset growth, meet deposit withdrawal,
maintain reserve requirements and otherwise operate the Bank on a continuing
basis. Liquidity for the Bank is provided by the acquisition of additional funds
in the form of deposits, borrowing such as federal funds, investment maturities
and sales, and loan maturities and repayments.
In recognition of the increased pace of deregulation and increasing
competition, the Bank will continue to increase its competitive position in the
area to assure the availability of funds. The Bank's reputation, capital
position and base of deposits will help to insure flexibility and liquidity.
CAPITAL ADEQUACY. The management of capital is a continuous process which
consists of providing capital for anticipated growth of the Bank. An evaluation
of capital adequacy cannot be made solely in terms of total capital or related
ratios. A more comprehensive indication of financial strength is management's
ability to generate capital through the retention of earnings. The Bank's main
source of capital during the last several years has been cumulative earnings
derived through profitable operations.
Regulations applicable to state banks and their holding companies
prescribe minimum capital levels. These levels are based on established
guidelines which relate required capital standards to both risk-weighted
assets_(risk-based capital ratios) and total assets (leverage ratio). In
accordance with risk-based guidelines, assets and_off-balance-sheet financial
instruments are assigned weights to measure their levels of risk. The total Tier
1_risk-based capital ratio for the Bank was 28.41% at year end 2001 and 30.25%
at year end 2000. Leverage ratios were 14.14% and 14.14% at December 31, 2001
and 2000, respectively. The Bank presently meets or exceeds all required
risk-based capital standards and anticipates no difficulty in maintaining those
standards.
FAIR VALUES OF FINANCIAL INSTRUMENTS. Statement of Financial Accounting
Standards No. 107, "Disclosures About Fair Values of Financial Instruments"
requires disclosure of estimated fair values of financial instruments. Financial
instruments are defined as cash and contractual rights and obligations that
require settlement, directly or indirectly, in cash. Note 13 to the consolidated
financial statements provides information regarding the fair values of financial
instruments as of December 31, 2001.
-9-
MARKET RISK. Market risk is the effect that interest rate changes in market
interest rates have on a bank's earnings and its underlying economic value.
Changes in interest rates affect a bank's earnings by changing its net interest
income and the level of other sensitive income and operating expenses. The
underlying economic value of the Company's assets, liabilities, and off-balance
sheet instruments also are affected by changes in interest rates. These changes
occur because the present value of future cash flows, and in some cases the cash
flows themselves, change when interest rates change. The combined effects of the
changes in these present values reflect the change in the Bank's underlying
economic value.
Table 14 presents the Bank's Interest Rate Sensitivity Analysis. The
table is prepared utilizing present value calculations. Present value is the
future cash flows of a financial instrument, or portfolio of financial
instruments, discounted to the present. The discount rate is constructed by the
use of the build-up approach or the risk premium approach.
The build-up approach views the discount rate as consisting of four
components. They are risk-free rate, credit risk, operating expense, and
prepayment option price. Risk-free rate forms the foundation of the discount
rate and is derived from the Treasury yield curve. The credit risk component is
the annualized yield needed to cover the loss of value expected over the entire
life of a portfolio. The operating expense component represents an annualized
cost rate derived from operating expense allocations. This component is used to
adjust the risk-free rate in order to compensate for operating expenses. The
prepayment option price is the final component, and represents a basis point
adjustment to the risk-free rate to reflect the value of imbedded prepayment
options.
The risk premium approach views the discount rate as the sum of two
components: the risk-free rate, and a risk premium. The risk-free rate is the
same as defined above. The risk premium is the annualized yield needed to cover
the risk reflected in the portfolio. This risk premium incorporates all forms of
risk in a single spread to the Treasury yield curve. Consistent with an entry
rate concept of selecting a discount rate, the marginal pricing rate for each
account serves as the basis for determining an appropriate risk premium to the
Treasury yield curve. This risk premium is calculated by subtracting the value
on the Treasury yield curve which corresponds to the average maturity of the
account from the account's marginal pricing rate.
The build-up approach is used for loans, deposits, and short-term
borrowing. The risk premium approach is used for securities and short-term
investments.
The cash flows for all assets and liabilities are estimated based upon
reasonable assumptions on the time remaining until maturity, repricing
frequency, decay factors, and prepayment rates. These assumptions are either
based on historical trends or available industry accepted information.
The effect of an increase in 200 basis points, as reflected in Table
14, from the December 31, 2001 rates would be a reduction of $.532 million or
3.89% in total market value of stockholders' equity. A decrease of 200 basis
points from December 31, 2001 would result in an increase of $.154 million or
1.13% increase in the market value of the stockholders' equity.
The effect on earnings is also reflected in Table 14. A 200 basis point
increase on the projected assets and liabilities outstanding as of December 31,
2002 would result in an increase in net income of $.234 million or a 6.24%
increase in net income. A 200 basis point decrease in the assets and liabilities
projected at December 31, 2002 would have the opposite effect and would result
in a decrease of net income in the amount of $.277 million or 7.4% decrease in
net interest income.
-10-
Computation of prospective effects of hypothetical interest rate
changes are based on many assumptions, including relative levels of market
interest rates, loan prepayments, and deposits decay. They should not be relied
upon as indicative of actual results. Further, the computations do not
contemplate certain actions that management could undertake in response to
changes in interest rates.
The Bank does not invest in derivatives and has none in its securities
portfolio.
-11-
-12-
TABLE 1
SUMMARY OF CONSOLIDATED NET INTEREST INCOME
Fully taxable equivalent basis (In thousands)
<Table>
<Caption>
2001
---------------------------------------------
AVERAGE AVERAGE
BALANCE INTEREST RATE
----------- ----------- -----------
ASSETS
Short-term investments $ 5,511 $ 221 4.01%
Loans, net of unearned income(1)(2) 35,534 3,116 8.77
Securities available for sale(1)(3) 32,422 2,016 6.22
Securities held to maturity 3,408 206 6.04
----------- -----------
Total interest earning assets 76,875 5,559 7.23%
----------- -----------
Allowance for possible loan losses (598)
Cash and due from banks 4,835
Other assets 2,747
-----------
Total assets $ 83,859
===========
LIABILITIES
Interest bearing demand deposits $ 11,158 $ 196 1.76%
Savings deposits 10,375 258 2.49
Time deposits 22,677 1,076 4.74
Short-term borrowings -- -- --
----------- -----------
Total interest bearing liabilities 44,210 1,530 3.46%
----------- -----------
Non-interest bearing demand deposits 27,114
Other liabilities 689
-----------
Total liabilities 72,013
SHAREHOLDERS' EQUITY
Shareholders' equity 11,846
-----------
Total liabilities and shareholders' equity $ 83,859
===========
Total interest expense related to earning assets 1.99%
-----------
Net interest income $ 4,029
===========
Net interest margin 5.24%
===========
</Table>
(1) Interest income earned on nontaxable investment securities and certain
loans are exempt from taxation. However, an adjustment has been made for
the tax preference item related to nontaxable securities purchased after
December 31, 1982. An incremental tax rate of 34% is used to compute the
taxable equivalent adjustment for 2001, 2000, and 1999.
(2) For purposes of yield computations, non-accrual loans are included in
loans outstanding.
(3) Yield computations are based on historical cost of securities available
for sale.
-13-
<Table>
<Caption>
2000 1999
- ----------------------------------------------- -----------------------------------------------
AVERAGE AVERAGE AVERAGE AVERAGE
BALANCE INTEREST RATE BALANCE INTEREST RATE
- ------------ ------------ ------------ ------------ ------------ ------------
$ 4,455 $ 268 6.02% $ 9,782 $ 492 5.03%
29,974 2,777 9.26 26,880 2,450 9.11
33,193 2,138 6.44 28,672 1,781 6.21
4,091 240 5.87 4,689 288 6.14
- ------------ ------------ ------------ ------------
71,713 5,423 7.56% 70,023 5,011 7.16%
------------ ------------ ------------ ------------
(572) (592)
4,814 4,912
1,999 2,109
- ------------ ------------
$ 77,954 $ 76,452
============ ============
$ 11,630 $ 237 2.04% $ 10,838 $ 211 1.95%
9,216 248 2.69 9,714 263 2.71
20,969 1,060 5.06 22,030 1,038 4.71
-- -- -- -- -- --
- ------------ ------------ ------------ ------------
41,815 1,545 3.69% 42,582 1,512 3.55%
------------ ------------ ------------ ------------
25,600 23,962
435 372
- ------------ ------------
67,850 66,916
10,104 9,536
- ------------ ------------
$ 77,954 $ 76,452
============ ============
2.15% 2.16%
------------ ------------
$ 3,878 $ 3,499
============ ============
5.41% 5.00%
============ ============
</Table>
-14-
TABLE 2
RATE/VOLUME ANALYSIS
Fully taxable equivalent basis (In thousands)
<Table>
<Caption>
YEAR ENDED DECEMBER 31,
------------------------------------------
2001/2000
------------------------------------------
INCREASE (DECREASE)
DUE TO CHANGE IN:(1)
--------------------------
AVERAGE AVERAGE NET
BALANCE RATE CHANGE
---------- ---------- ----------
Interest income:
Short-term investments .................. $ 53 $ (100) $ (47)
Loans, net of unearned income ........... 501 (162) 339
Securities available for sale ........... (49) (73) (122)
Securities held to maturity ............. (41) (7) (34)
---------- ---------- ----------
Total interest income ................ 464 (328) 136
---------- ---------- ----------
Interest expense:
Demand deposits ......................... (9) (32) (41)
Savings deposits ........................ 30 (20) 10
Time deposits ........................... 84 (68) 16
Short-term borrowing .................... -- -- --
---------- ---------- ----------
Total interest expense ............... 105 (120) (15)
---------- ---------- ----------
Taxable-equivalent net interest income ..... $ 359 $ (208) $ 151
========== ========== ==========
</Table>
(1) The change in interest due to both rate and volume has been allocated to
rate and volume changes in proportion to the relationship of the absolute
dollar amounts of the change in each.
-15-
<Table>
<Caption>
YEAR ENDED DECEMBER 31,
------------------------------------------
2000/1999
------------------------------------------
INCREASE (DECREASE)
DUE TO CHANGE IN:(1)
--------------------------
AVERAGE AVERAGE NET
BALANCE RATE CHANGE
---------- ---------- ----------
$ (294) $ 70 $ (224)
284 43 327
286 71 357
(36) (12) (48)
---------- ---------- ----------
240 172 412
---------- ---------- ----------
16 10 26
(13) (2) (15)
(52) 74 22
-- -- --
---------- ---------- ----------
(49) 82 33
---------- ---------- ----------
$ 289 $ 90 $ 379
========== ========== ==========
</Table>
-16-
TABLE 3
SECURITIES PORTFOLIO
(In thousands)
<Table>
<Caption>
DECEMBER 31, 2001 DECEMBER 31, 2000
------------------------------------------- -------------------------------------------
HELD TO AVAILABLE HELD TO AVAILABLE
MATURITY FOR SALE TOTAL MATURITY FOR SALE TOTAL
----------- ----------- ----------- ----------- ----------- -----------
U.S. Treasury ........... $ 2,306 $ -- $ 2,306 $ 4,396 $ -- $ 4,396
U.S. Government and
Agencies ............. -- 14,290 14,290 500 14,413 14,913
Mortgage-Backed
Securities ........... -- 9,133 9,133 -- 7,253 7,253
State and Political
Subdivisions ......... -- 11,477 11,477 -- 9,252
9,252
Equity Securities ....... -- 149 149 -- 149 149
----------- ----------- ----------- ----------- ----------- -----------
$ 2,306 $ 35,049 $ 37,355 $ 4,896 $ 31,067 $ 35,963
=========== =========== =========== =========== =========== ===========
</Table>
-17-
-18-
TABLE 4
MATURITY DISTRIBUTION AND SECURITIES PORTFOLIO YIELDS
(In thousands)
<Table>
<Caption>
AFTER AFTER
ONE BUT FIVE BUT
WITHIN ONE WITHIN FIVE WITHIN TEN
YEAR AMT. YIELD YEARS AMT. YIELD YEARS AMT. YIELD
----------- ----------- ----------- ----------- ----------- -----------
December 31, 2001:
Held to maturity:
U.S. Treasury ..................... $ 1,799 6.61% $ 507 4.35% $ -- --%
U.S. Government
and Agencies .................... -- -- -- -- -- --
----------- ----------- ----------- ----------- ----------- -----------
Total held to maturity ......... 1,799 6.61% 507 4.35% -- --
----------- ----------- ----------- ----------- ----------- -----------
Available for sale:
U.S. Government
and Agencies .................... -- --% 11,269 5.84% 3,021 6.08%
Mortgage-Backed
Securities(2) ................... 2 8.71 2,417 5.36 3,766 6.16
State and
Political
Subdivisions(1) ................. 976 6.83 5,976 7.21 4,108 7.34
Equity Securities ................... 149 -- -- -- -- --
----------- ----------- ----------- ----------- ----------- -----------
Total available for sale ....... 1,127 6.83% 19,662 6.14% 10,895 6.62%
----------- ----------- ----------- ----------- ----------- -----------
Total securities ............... $ 2,926 6.69% $ 20,169 6.10% $ 10,895 6.62%
=========== =========== =========== =========== =========== ===========
</Table>
(1) Tax exempt yields are expressed on a fully taxable equivalent basis.
(2) Distributed by contractual maturity without regard to repayment schedules
or projected payments.
-19-
<Table>
<Caption>
AFTER TEN TOTAL
YEARS AMT. YIELD AMOUNT YIELD
- ------------ ------------ ------------ ------------
$ -- --% $ 2,306 6.12%
-- -- -- --
- ------------ ------------ ------------ ------------
-- --% 2,306 6.12%
- ------------ ------------ ------------ ------------
-- --% 14,290 5.89%
2,948 6.61 9,133 6.09
417 8.98 11,477 7.23
-- -- 149 --
- ------------ ------------ ------------ ------------
3,365 7.03% 35,049 6.36%
- ------------ ------------ ------------ ------------
$ 3,365 7.03% $ 37,355 6.34%
============ ============ ============ ============
</Table>
-20-
TABLE 5
LOAN PORTFOLIO
The loans outstanding for the three years ended December 31, 2001 are shown in
the following table according to type of loan (in thousands).
<Table>
<Caption>
2001 2000 1999
---------- ---------- ----------
Commercial, financial and agricultural ......... $ 6,738 $ 6,946 $ 7,326
Real estate construction ....................... 1,690 539 949
Real estate mortgage ........................... 23,604 20,052 15,809
Installment .................................... 5,719 5,122 4,748
---------- ---------- ----------
Total .................................. 37,751 32,659 28,832
Less:
Allowance for possible loan losses ........ (605) (579) (579)
Unearned income ........................... -- -- --
---------- ---------- ----------
$ 37,146 $ 32,080 $ 28,253
========== ========== ==========
</Table>
TABLE 6
LOAN MATURITY AND INTEREST RATE SENSITIVITY
The following table shows the amount of commercial, financial and agricultural
loans, real estate-construction loans and real estate mortgage loans, exclusive
of installment loans, outstanding as of December 31, 2001 which, based on
remaining scheduled repayments of principal, are due in the amounts indicated.
Also, the amounts are classified according to the sensitivity to the changes in
interest rates (in thousands).
<Table>
<Caption>
ONE YEAR OVER ONE
OR TO OVER
LESS (1) 5 YEARS 5 YEARS TOTAL
---------- ---------- ---------- ----------
Maturity of Loans:
Commercial, financial and
agricultural ........................... $ 4,431 $ 2,183 $ 124 $ 6,738
Real estate mortgage and
construction ........................... 5,449 17,653 2,192 25,294
---------- ---------- ---------- ----------
Total ................................. $ 9,880 $ 19,836 $ 2,316 $ 32,032
========== ========== ========== ==========
Interest Rate Sensitivity of Loans:
With predetermined interest rates ........ $ 6,478 $ 18,818 $ 258 $ 25,554
With floating interest rates (2) ......... 3,402 1,018 2,058 6,478
---------- ---------- ---------- ----------
Total ................................. $ 9,880 $ 19,836 $ 2,316 $ 32,032
========== ========== ========== ==========
</Table>
(1) Includes demand loans, loans having no stated schedule of repayments and no
stated maturity, and overdrafts.
(2) The floating interest rate loans generally fluctuate according to a formula
based on a prime rate.
-21-
TABLE 7
NONPERFORMING ASSETS
Nonperforming 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 that 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 $32,199 at year end 2001, which was approximately
the same as last year. Nonperforming assets totaled $33,923 at December 31,
2000, which was a decrease of $75,106 (69%) from December 31, 1999. The
composition of nonperforming assets for the past three years are illustrated
below.
<Table>
<Caption>
2001 2000 1999
---------- ---------- ----------
Nonperforming loans:
Loans on nonaccrual ..................... $ 7,740 $ -- $ 69,889
Restructured loans which are not
on nonaccrual .......................... 24,459 33,923 39,140
---------- ---------- ----------
Total nonperforming loans ........... 32,199 33,923 109,029
Other real estate and repossessed
assets received in complete or
partial satisfaction of loan
obligations ............................. -- -- --
---------- ---------- ----------
Total nonperforming assets .......... $ 32,199 $ 33,923 $ 109,029
========== ========== ==========
Loans contractually past due 90
days or more as to principal or
interest but which are not on
nonaccrual .............................. $ 15,871 $ 11,061 $ 8,119
========== ========== ==========
</Table>
At December 31, 2001, the Bank has loans outstanding to multiple numbers of
borrowers engaged in the medical industry and the legal profession. Loans to the
medical industry were approximately $6,515,000, while the loans to the legal
profession were approximately $3,820,000. There were no significant
nonperforming loans outstanding in these two concentrations.
-22-
TABLE 8
ALLOWANCE FOR POSSIBLE LOAN LOSSES
(In Thousands)
<Table>
<Caption>
YEAR ENDED DECEMBER 31,
--------------------------------------
2001 2000 1999
-------- -------- --------
Beginning balance ..................................... $ 579 $ 579 $ 596
-------- -------- --------
Charge-offs:
Commercial, financial and agricultural loans ....... (3) (3) (13)
Real estate mortgage loans ......................... -- -- --
Real estate construction loans ..................... -- -- --
Installment loans .................................. (15) (8) (7)
-------- -------- --------
Total charge-offs .............................. (18) (11) (20)
-------- -------- --------
Recoveries:
Commercial, financial and agricultural loans ....... -- -- --
Real estate mortgage loans ......................... -- -- --
Real estate construction loans ..................... -- -- --
Installment loans .................................. 2 -- 3
-------- -------- --------
Total recoveries ............................... 2 -0- 3
-------- -------- --------
Net (charge-offs) recoveries .......................... (16) (11) (17)
-------- -------- --------
Provision charged against income ...................... 42 11 - 0-
-------- -------- --------
Ending balance ........................................ $ 605 $ 579 $ 579
======== ======== ========
Net charge-offs to average loans ..................... (.05)% (.04)% (.06)%
======== ======== ========
Year-end allowance to year-end loans .................. 1.6% 1.77% 2.01%
======== ======== ========
</Table>
-23-
TABLE 9
ALLOCATION FOR POSSIBLE LOAN LOSSES
(In thousands)
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 at the date
indicated.
<Table>
<Caption>
DECEMBER 31, 2001 DECEMBER 31, 2000
-------------------------- ---------------------------
% OF LOANS % OF LOANS
OUTSTANDING OUTSTANDING
TO TOTAL TO TOTAL
ALLOWANCE LOANS ALLOWANCE LOANS
---------- ----------- ---------- ----------
Commercial, financial and
agricultural loans .......... $ 113 17.85% $ 115 21.27%
Real estate construction ........ 8 4.48 4 1.65
Real estate mortgage loans ...... 257 62.53 236 61.40
Installment loans ............... 227 15.14 224 15.68
---------- ---------- ---------- ----------
$ 605 100.00% $ 579 100.00%
========== ========== ========== ==========
</Table>
<Table>
<Caption>
DECEMBER 31, 1999
---------------------------
% OF LOANS
OUTSTANDING
TO TOTAL
ALLOWANCE LOANS
---------- ----------
Commercial, financial and
agricultural loans ........... $ 120 25.41%
Real estate construction ........ 5 3.29
Real estate mortgage loans ...... 238 54.83
Installment loans ............... 216 16.47
---------- ----------
$ 579 100.00%
========== ==========
</Table>
-24-
TABLE 10
DEPOSITS
The following table presents the average balance and an average rate paid on
deposits (in thousands):
<Table>
<Caption>
DECEMBER 31,
-------------------------------------------------------------------------------------
2001 2000 1999
------------------------- ------------------------- -------------------------
AVERAGE AVERAGE AVERAGE AVERAGE AVERAGE AVERAGE
BALANCE RATE BALANCE RATE BALANCE RATE
---------- ---------- ---------- ---------- ---------- ----------
Non-interest bearing
demand deposits ............ $ 27,114 --% $ 25,600 --% $ 23,962 --%
Interest bearing
demand deposits ............ 11,158 1.76 11,630 2.04 10,838 1.95
Savings deposits ............. 10,375 2.49 9,216 2.69 9,714 2.71
Time deposits ................ 22,677 4.74 20,969 5.06 22,030 4.71
Short-term borrowings ........ -- -- -- -- -- --
---------- ---------- ----------
Total ................. $ 71,324 $ 67,415 $ 66,544
========== ========== ==========
</Table>
TABLE 11
CERTIFICATES OF DEPOSIT OF $100,000 OR MORE, MATURITY DISTRIBUTION
The following table provides the maturities of time certificates of deposit of
the Bank in amounts of $100,000 or more (in thousands):
<Table>
<Caption>
DECEMBER 31,
----------------------------------------
2001 2000 1999
---------- ---------- ----------
Maturing in:
3 months or less ........................ $ 4,387 $ 2,961 $ 3,076
Over 3 months less than 6 months ........ 2,413 1,536 1,084
Over 6 months less than 12 months ....... 511 682 458
Over 12 months .......................... -- -- --
---------- ---------- ----------
Total ............................... $ 7,311 $ 5,179 $ 4,618
========== ========== ==========
</Table>
-25-
TABLE 12
RISK-BASED CAPITAL
(In thousands)
<Table>
<Caption>
DECEMBER 31,
------------------------------
2001 2000
------------ ------------
Risk-weighted assets ............................. $ 43,642 $ 38,022
============ ============
Capital:
Tier I ........................................ $ 11,853 $ 11,025
Tier II ....................................... 546 475
------------ ------------
Total capital ............................... $ 12,399 $ 11,500
============ ============
Ratios:
Tier I capital to risk-weighted assets ........ 27.16% 29.00%
Tier II capital to risk-weighted assets ....... 1.25 1.25
------------ ------------
Total capital to risk-weighted assets ....... 28.41% 30.25%
============ ============
Leverage - Tier I capital to total
average assets .............................. 14.14% 14.14%
============ ============
</Table>
TABLE 13
RETURN ON EQUITY AND ASSETS
The following table shows consolidated operating and capital ratios for each of
the last three years:
<Table>
<Caption>
YEARS ENDED DECEMBER 31,
------------------------------------
2001 2000 1999
-------- -------- --------
Return on average total assets ............. 1.35% 1.54% 1.42%
Return on average shareholders' equity ..... 9.59% 11.91% 11.38%
Dividend payout ratio ...................... 20.60% 16.62% 15.74%
Average equity to average assets ratio ..... 14.13% 12.96% 12.47%
</Table>
-26-
TABLE 14
INTEREST RATE SENSITIVITY ANALYSIS
DECEMBER 31, 2001
(In thousands)
<Table>
<Caption>
RATE +200 BP RATE -200 BP
-------------------------- -------------------------
FORECAST AMOUNT % CHANGE AMOUNT % CHANGE
---------- ---------- ---------- ---------- ----------
Economic value at risk:
Short-term investments ............ $ 8,925 $ 8,924 (0.01) $ 8,926 0.01
Securities ........................ 37,402 35,741 (4.44) 38,988 4.24
Net loans ......................... 39,118 37,988 (2.89) 40,268 2.94
All other assets .................. 8,126 8,126 0.00 8,126 0.00
---------- ---------- ---------- ---------- ----------
Total assets ............. $ 93,571 $ 90,779 (2.98) $ 96,308 2.93
========== ========== ========== ========== ==========
Deposits ............................... $ 78,812 $ 77,111 (2.16) $ 80,860 2.60
Borrowed money ......................... 475 470 (1.05) 480 1.05
Other liabilities ...................... 609 55 (91.00) 1,139 87.09
---------- ---------- ---------- ---------- ----------
Total liabilities ........ 79,896 77,636 (2.83) 82,479 3.23
Equity ................................. 13,675 13,143 (3.89 13,829 1.13
---------- ---------- ---------- ---------- ----------
$ 93,571 $ 90,779 (2.98) $ 96,308 2.93
========== ========== ========== ========== ==========
Earnings at risk:
January 1 to December 31, 2002
Short-term investments ........ $ 153 $ 340 122.22 $ 13 (91.50)
Securities .................... 1,731 1,848 6.78 1,544 (10.76)
Loans and leases .............. 3,070 3,333 8.57 2,825 (8.01)
---------- ---------- ---------- ---------- ----------
Interest income .......... 4,954 5,521 11.44 4,382 (11.54)
---------- ---------- ---------- ---------- ----------
Transaction deposits ................... 409 458 12.20 372 (9.03)
Certificates of deposits ............... 799 1,075 34.52 547 (31.54)
Borrowed money ......................... 7 15 114.29 1 (85.71)
---------- ---------- ---------- ---------- ----------
Interest expense ......... 1,215 1,548 27.45 920 (24.28)
---------- ---------- ---------- ---------- ----------
Net interest income .................... $ 3,739 $ 3,973 6.24 $ 3,462 (7.40)
========== ========== ========== ========== ==========
</Table>
-27-
[BROUSSARD, POCHE, LEWIS & BREAUX, L.L.P. LETTERHEAD]
INDEPENDENT AUDITORS' REPORT
To the Shareholders and Board of Directors
American Bancorp, Inc.
Opelousas, Louisiana
We have audited the accompanying consolidated balance sheets of American
Bancorp, Inc. and subsidiary as of December 31, 2001 and 2000, and the related
consolidated statements of income, changes in shareholders' equity and cash
flows for each of the three years in the period ended December 31, 2001. These
consolidated financial statements are the responsibility of the Company's
management. Our responsibility is to express an opinion on these financial
statements based on our audits.
We conducted our audits in accordance with auditing standards generally accepted
in the United States of America. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the consolidated financial statements referred to above present
fairly, in all material respects, the consolidated financial position of
American Bancorp, Inc. and subsidiary as of December 31, 2001 and 2000, and the
consolidated results of their operations and their cash flows for each of the
three years in the period ended December 31, 2001, in conformity with accounting
principles generally accepted in the United States of America.
/s/ BROUSSARD, POCHE, LEWIS & BREAUX
Lafayette, Louisiana
January 16, 2002
-28-
AMERICAN BANCORP, INC.
CONSOLIDATED BALANCE SHEETS
DECEMBER 31, 2001 AND 2000
<Table>
<Caption>
ASSETS 2001 2000
------------ ------------
Cash and due from banks ............................... $ 5,321,100 $ 6,900,623
Federal funds sold .................................... 8,925,000 4,775,000
------------ ------------
Total cash and cash equivalents .................... 14,246,100 11,675,623
Interest bearing deposits with banks .................. 99,000 298,000
Securities held to maturity (estimated
market values $2,353,593 and $4,928,531,
respectively) ...................................... 2,306,283 4,896,244
Securities available for sale ......................... 35,048,993 31,067,441
Loans, net of allowance for possible
loan losses of $605,191 and $579,481,
respectively ....................................... 37,145,579 32,080,127
Bank premises and equipment ........................... 1,770,615 1,549,934
Accrued interest receivable ........................... 583,366 665,791
Other assets .......................................... 389,764 526,902
------------ ------------
$ 91,589,700 $ 82,760,062
============ ============
</Table>
See Notes to Consolidated Financial Statements.
-29-
<Table>
<Caption>
LIABILITIES AND SHAREHOLDERS' EQUITY 2001 2000
------------ ------------
LIABILITIES
Deposits:
Non-interest bearing demand deposits ......................... $ 27,780,347 $ 25,925,833
Interest bearing deposits .................................... 50,907,588 45,392,649
------------ ------------
Total deposits ......................................... 78,687,935 71,318,482
Accrued interest payable ........................................ 130,728 158,760
Other liabilities ............................................... 506,317 206,361
------------ ------------
Total liabilities ...................................... 79,324,980 71,683,603
------------ ------------
SHAREHOLDERS' EQUITY
Common stock, $5 par value; 10,000,000
shares authorized; 120,000 shares
issued; 116,589 and 117,630 outstanding, respectively ........ 600,000 600,000
Surplus ......................................................... 2,150,000 2,150,000
Retained earnings ............................................... 9,344,901 8,442,150
Accumulated other comprehensive income,
net of tax of $197,078 and $9,760,
respectively ................................................. 382,562 18,946
Treasury stock, 3,411 and 2,370 shares at cost, respectively .... (212,743) (134,637)
------------ ------------
Total shareholders' equity .............................. 12,264,720 11,076,459
------------ ------------
$ 91,589,700 $ 82,760,062
============ ============
</Table>
-30-
AMERICAN BANCORP, INC.
CONSOLIDATED STATEMENTS OF INCOME
YEARS ENDED DECEMBER 31, 2001, 2000 AND 1999
<Table>
<Caption>
2001 2000 1999
------------ ------------ ------------
Interest income:
Interest and fees on loans .............. $ 3,116,156 $ 2,776,182 $ 2,433,152
Interest on investment securities-
Taxable .............................. 1,544,133 1,750,951 1,556,496
Tax-exempt ........................... 445,174 414,496 338,148
Federal funds sold ...................... 210,759 230,179 411,878
Deposits with banks ..................... 10,152 38,270 79,744
------------ ------------ ------------
Total interest income ............. 5,326,374 5,210,078 4,819,418
Interest expense:
Interest on deposits .................... 1,529,594 1,545,041 1,511,660
------------ ------------ ------------
Net interest income ........................ 3,796,780 3,665,037 3,307,758
Provision for possible loan losses ......... 42,000 10,500 --
------------ ------------ ------------
Net interest income after provision
for possible loan losses ................ 3,754,780 3,654,537 3,307,758
------------ ------------ ------------
Non-interest income:
Service charges on deposit accounts ..... 575,157 555,331 559,418
Other ................................... 89,596 140,034 133,128
------------ ------------ ------------
Total non-interest income ......... 664,753 695,365 692,546
------------ ------------ ------------
Non-interest expense:
Salary and employee benefits ............ 1,485,574 1,395,243 1,301,324
Net occupancy expense ................... 326,033 306,870 287,674
Equipment expense ....................... 304,377 276,781 224,367
Net cost (revenue) from other
real estate .......................... -- -- (40,434)
Other ................................... 788,340 741,424 738,895
------------ ------------ ------------
Total non-interest expense ........ 2,904,324 2,720,318 2,511,826
------------ ------------ ------------
Income before income taxes ................. 1,515,209 1,629,584 1,488,478
Provision for income taxes ................. 379,210 426,328 402,933
------------ ------------ ------------
Net income ........................ $ 1,135,999 $ 1,203,256 $ 1,085,545
============ ============ ============
Net income per common share ................ $ 9.71 $ 10.23 $ 9.21
============ ============ ============
</Table>
See Notes to Consolidated Financial Statements.
-31-
-32-
AMERICAN BANCORP, INC.
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
YEARS ENDED DECEMBER 31, 2001, 2000 AND 1999
<Table>
<Caption>
COMMON STOCK
SHARES AMOUNT SURPLUS
------------ ------------ ------------
Balance, December 31, 1998 ....................... 120,000 $ 600,000 $ 2,150,000
Comprehensive income
Net income for 1999 ........................... -- -- --
Other comprehensive income:
Changes in unrealized holding gains
(losses) on securities available
for sale, net of tax of $(285,291) ....... -- -- --
Total comprehensive income ............... -- -- --
Purchase of treasury stock ....................... -- -- --
Dividends paid in 1999 ........................... -- -- --
------------ ------------ ------------
Balance, December 31, 1999 ....................... 120,000 600,000 2,150,000
Comprehensive income
Net income for 2000 ........................... -- -- --
Other comprehensive income:
Changes in unrealized holding gains
on securities available for sale,
net of tax of $295,051 ................... -- -- --
Total comprehensive income ............... -- -- --
Purchase of treasury stock ....................... -- -- --
Dividends paid in 2000 ........................... -- -- --
------------ ------------ ------------
Balance, December 31, 2000 ....................... 120,000 600,000 2,150,000
Comprehensive income
Net income for 2001 ........................... -- -- --
Other comprehensive income:
Change in unrealized holding gains
on securities available for sale,
net of tax of $197,071 ................... -- -- --
Total comprehensive income ............... -- -- --
Purchase of treasury stock ....................... -- -- --
Dividends paid in 2001 ........................... -- -- --
------------ ------------ ------------
Balance, December 31, 2001 ....................... 120,000 $ 600,000 $ 2,150,000
============ ============ ============
</Table>
See Notes to Consolidated Financial Statements.
-33-
<Table>
<Caption>
ACCUMULATED
OTHER
RETAINED COMPREHENSIVE TREASURY COMPREHENSIVE
EARNINGS INCOME STOCK INCOME TOTAL
------------ -------------- ------------ ------------- ------------
$ 6,524,015 $ 256,187 $ (84,695) $ -- $ 9,445,507
1,085,545 -- -- 1,085,545 1,085,545
-- (809,988) -- (809,988) (809,988)
------------
-- -- -- $ 275,557 --
============
-- -- (44,706) (44,706)
(170,683) -- -- (170,683)
------------ ------------ ------------ ------------
7,438,877 (553,801) (129,401) $ -- 9,505,675
1,203,256 -- -- 1,203,256 1,203,256
-- 572,747 -- 572,747 572,747
------------
-- -- -- $ 1,776,003 --
============
-- -- (5,236) (5,236)
(199,983) -- -- (199,983)
------------ ------------ ------------ ------------
8,442,150 18,946 (134,637) $ -- 11,076,459
1,135,999 -- -- 1,135,999 1,135,999
-- 363,616 -- 363,616 363,616
------------
-- -- -- $ 1,499,615 --
============
-- -- (78,106) (78,106)
(233,248) -- -- (233,248)
------------ ------------ ------------ ------------
$ 9,344,901 $ 382,562 $ (212,743) $ 12,264,720
============ ============ ============ ============
</Table>
-34-
AMERICAN BANCORP, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
YEARS ENDED DECEMBER 31, 2001, 2000 AND 1999
<Table>
<Caption>
2001 2000 1999
------------ ------------ ------------
OPERATING ACTIVITIES
Net income .................................... $ 1,135,999 $ 1,203,256 $ 1,085,545
Adjustments to reconcile net income
to net cash provided by operating
activities:
Premium amortization, net of discount
accretion, on investment securities ..... (175,623) (99,495) (49,466)
Depreciation ............................... 180,899 161,126 129,296
(Gain) loss on disposal of assets .......... 255 (9,308) --
(Increase) decrease in assets:
Accrued interest receivable ............. 82,425 (49,276) (7,739)
Other assets ............................ (34,376) (23,118) 126,902
Increase (decrease) in liabilities:
Accrued interest payable ................ (28,032) 26,597 (12,105)
Other liabilities ....................... 112,638 46,826 (98,011)
------------ ------------ ------------
Net cash provided by operating
activities ........................ 1,274,185 1,256,608 1,174,422
------------ ------------ ------------
INVESTING ACTIVITIES
(Increase) decrease in interest bearing
deposits with banks ........................ 199,000 792,000 297,000
Proceeds from maturities
of securities available for sale ........... 15,719,666 6,479,450 5,421,738
Proceeds from maturities
of securities held to maturity ............. 3,100,000 200,000 5,000,000
Purchase of securities available for
sale ...................................... (18,973,841) (5,160,466) (14,008,754)
Purchase of securities held to
maturity ................................... (510,859) (2,293,072) (2,098,859)
(Increase) decrease in loans .................. (5,065,400) (3,826,814) (790,718)
Purchases of property and equipment ........... (401,835) (611,453) (124,227)
Other ......................................... 171,462 6,770 --
------------ ------------ ------------
Net cash used in investing
activities ........................... (5,761,807) (4,413,585) (6,303,820)
------------ ------------ ------------
</Table>
-35-
<Table>
<Caption>
2001 2000 1999
------------ ------------ ------------
FINANCING ACTIVITIES
Increase (decrease) in liabilities:
Demand deposits, transaction
accounts and savings .............. 3,769,639 1,490,976 5,952,640
Time deposits ........................ 3,599,814 (606,861) 662,744
Dividends paid .......................... (233,248) (199,983) (170,683)
Purchase of treasury stock .............. (78,106) (5,236) (44,706)
------------ ------------ ------------
Net cash provided by
financing activities ........... 7,058,099 678,896 6,399,995
------------ ------------ ------------
Increase (decrease) in cash and cash
equivalents ............................. 2,570,477 (2,478,081) 1,270,597
Cash and cash equivalents at
beginning of year ....................... 11,675,623 14,153,704 12,883,107
------------ ------------ ------------
Cash and cash equivalents at end
of year ................................. $ 14,246,100 $ 11,675,623 $ 14,153,704
============ ============ ============
SUPPLEMENTAL DISCLOSURES
Cash payments for:
Interest expense ..................... $ 1,557,626 $ 1,518,444 $ 1,523,315
============ ============ ============
Income taxes ......................... $ 353,188 $ 444,042 $ 363,552
============ ============ ============
</Table>
See Notes to Consolidated Financial Statements.
-36-
AMERICAN BANCORP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Note 1. Accounting Policies
American Bancorp, Inc. (the Company) and its subsidiary, American
Bank & Trust Company (the Bank), follow generally accepted
accounting principles and reporting practices applicable to the
banking industry. Descriptions of significant accounting policies
are summarized below:
Description of business:
The Company is a bank holding company headquartered in Opelousas,
Louisiana, operating principally in the community banking business
segment by providing banking services to commercial and retail
customers through its wholly owned subsidiary, the Bank.
The Bank is community oriented and focuses primarily on offering
competitive commercial and consumer loan and deposit services to
individuals and small to middle market businesses.
Comprehensive income:
Comprehensive income includes net income and other comprehensive
income which, in the case of the Company, includes only unrealized
gains and losses on securities available for sale.
Consolidation:
The consolidated financial statements include the accounts of the
respective parent Company and its subsidiary. All significant
intercompany accounts and transactions have been eliminated.
Cash and cash equivalents:
For the purpose of reporting cash flows, cash and cash equivalents
include cash on hand, amounts due from banks, and federal funds
sold. Generally, federal funds are purchased or sold for one-day
periods.
Use of estimates:
The preparation of financial statements in conformity with
generally accepted accounting principles requires management to
make estimates and assumptions that affect the amounts reported in
the consolidated financial statements and accompanying notes.
Actual results could differ from those estimates.
-37-
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Securities:
Management determines the appropriate classification of debt
securities (trading, available for sale, or held to maturity) at
the time of purchase and re-evaluates this classification
periodically. Securities classified as trading account assets are
held for sale in anticipation of short-term market movements. Debt
securities are classified as held to maturity when the Bank has
the positive intent and ability to hold the securities to
maturity. Securities not classified as held to maturity or trading
are classified as available for sale.
Securities classified as trading account assets are carried at
market value and are included in short-term investments. Gains and
losses, both realized and unrealized, are reflected in earnings as
other operating income. Securities classified as held to maturity
are stated at amortized costs. Securities classified as available
for sale are stated at fair value, with unrealized gains and
losses, net of tax, reported in shareholders' equity and included
in other comprehensive income.
The amortized cost of debt securities classified as held to
maturity or available for sale is adjusted for amortization of
premiums and accretion of discounts to maturity or, in the case of
mortgage-backed securities, over the estimated life of the
security. Amortization, accretion and accruing interest are
included in interest income on securities using the level-yield
method. Realized gains and losses, and declines in value judged to
be other than temporary, are included in net securities gains
(losses). The cost of securities sold is determined based on the
specific identification method.
Loans:
Loans that management has the intent and ability to hold for the
foreseeable future or until maturity or pay-off are reported at
their outstanding principal adjusted for any charge-offs, the
allowance for loan losses and unearned income. Interest on loans
and accretion of unearned income are computed by methods which
approximate a level rate of return on recorded principal.
The Company considers a loan to be impaired when, based upon
current information and events, it believes it is probable that
the Company will be unable to collect all amounts due according to
the contractual terms of the loan agreement. The Company's
impaired loans include troubled debt restructurings, performing
and nonperforming loans, in which full payment of principal or
interest is not expected. The Company calculates a reserve
required for impaired loans based on the expected future cash
flows discounted at the loan's effective interest rate, or at the
loan's observable market price or the fair value of its
collateral.
Generally, loans other than consumer loans, which become 90 days
delinquent are either in the process of collection through
repossession or foreclosure or alternatively, are deemed currently
uncollectible. Loans deemed currently uncollectible are charged
off against the allowance account. As a matter of policy, loans
are placed on a nonaccrual basis where doubt exits as to
collectibility.
-38-
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Allowance for possible loan losses:
The allowance for possible loan losses is maintained to provide
for possible losses inherent in the loan portfolio. The allowance
related to loans that are identified as impaired is based on
discounted cash flows, using the loan's initial effective interest
rate, or the fair value of the collateral for certain collateral
dependent loans.
The allowance is based on management's estimate of future losses;
actual losses may vary from the current estimate. The estimate is
reviewed periodically, taking into consideration the risk
characteristics of the loan portfolio, past loss experience,
general economic conditions and other factors which warrant
current recognition. As adjustments to the estimate of future
losses become necessary, they are reflected as a provision for
possible loan losses in current-period earnings. Actual loan
losses are deducted from, and subsequent recoveries are added to,
the allowance.
Bank premises and equipment:
Bank premises and equipment are stated at cost less accumulated
depreciation. Depreciation is computed primarily by the
straight-line method. Useful lives utilized for purposes of
computing depreciation are as follows: buildings, 10 to 30 years;
furniture and equipment, 3 to 10 years. Maintenance, repairs and
minor improvements are charged to operating expenses. Gains or
losses on dispositions are reflected currently in the Statement of
Income.
Foreclosed assets:
Foreclosed assets include real estate and other collateral
acquired upon the default of loans. Foreclosed assets and excess
bank-owned property are recorded at the fair value of the assets
less estimated selling costs. Losses arising from the initial
reduction of an outstanding loan amount to fair value are deducted
from the allowance for loan losses. Losses arising from the
transfer of bank premises and equipment to excess bank-owned
property are charged to expense. A valuation reserve for
foreclosed assets and excess bank-owned property is maintained for
subsequent valuation adjustments on a specific-property basis.
Income and expenses associated with foreclosed assets and excess
bank-owned property prior to sale are included in current
earnings.
Income taxes:
The Company files a consolidated federal income tax return with
the subsidiary Bank. The Company accounts for income taxes using
the asset and liability method. Under this method, deferred tax
assets and liabilities are based on the temporary differences
between the financial reporting basis and tax basis of the
Company's assets and liabilities at enacted tax rates expected to
be in effect when such amounts are realized or settled.
-39-
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Recent pronouncements:
The Financial Accounting Standards Board (FASB) issued No. 137,
"Accounting for Derivative Instruments and Hedging
Activities-Deferral of the Effective Date of FASB No. 133," in
June 1999 and it was adopted on January 1, 2001. Adoption of the
standard did not have a material effect on the Company's financial
statements, financial position or results of operations.
In September 2000, the FASB issued No. 140, "Accounting for
Transfers and Servicing of Financial Assets and Extinguishments of
Liabilities," a replacement of FASB No. 125, which is effective
for fiscal years ending after December 15, 2000. Adoption of the
standard did not have a material effect on the Company's financial
statements, financial condition or results of operations.
Adoption of the above standards will not have a material effect on
the Company's financial statements, financial position or results
of operations.
FASB issued No. 141, "Business Combinations" in September 2001.
This statement requires that all business combinations are to be
accounted for using the purchase method. This statement will apply
to all business combinations initiated after June 30, 2001. The
adoption of SFAS No. 141 did not have a material impact on the
financial condition or operating results of the Company.
In September 2001, the FASB issued No. 142, "Goodwill and Other
Intangible Assets." This statement addresses financial accounting
and reporting for acquired goodwill and other intangible assets
and supersedes APB Opinion No. 17, "Intangible Assets." It
addresses how intangible assets that are acquired individually or
with a group of other assets should be accounted for in financial
statements upon their acquisition. This statement also addresses
how goodwill and other intangible assets should be accounted for
after they have been initially recognized in the financial
statements. All provisions of this statement are effective for
fiscal years beginning after December 15, 2001. The adoption of
SFAS No. 142 is not expected to have a material impact on the
financial condition or operating results of the Company.
The FASB issued No. 143, "Accounting for Asset Retirement
Obligations." This statement addresses financial accounting and
reporting for obligations associated with the retirement of
tangible long-lived assets and the associated asset retirement
costs. The effective date of this statement is for fiscal years
beginning after June 15, 2002. The adoption of SFAS No. 143 is not
expected to have a material impact on the financial condition or
operating results of the Company.
Reclassifications:
Certain amounts in the 2000 and 1999 financial statements have
been reclassified to conform with the financial statement
presentation for 2001 for comparability. These reclassifications
had no effect on net income as previously reported for the 2000
and 1999 fiscal years.
Note 2. Restrictions on Cash and Due From Bank Accounts
The Bank is required to maintain average reserve balances by the
Federal Reserve Bank. The average amount of these reserve balances
was $911,000 and $844,000 for the years ended December 31, 2001
and 2000, respectively.
-40-
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Note 3. Investment Securities
The carrying amounts of investment securities as shown in the
consolidated balance sheets of the Bank and their approximate
market values at December 31 were as follows:
<Table>
<Caption>
DECEMBER 31, 2001
---------------------------------------------------------------
AMORTIZED UNREALIZED UNREALIZED FAIR
COST GAINS LOSSES VALUE
------------ ------------ ------------ ------------
Securities held to maturity:
U.S. Treasury Securities ............ $ 2,306,283 $ 47,310 $ -0- $ 2,353,593
============ ============ ============ ============
</Table>
<Table>
<Caption>
DECEMBER 31, 2001
---------------------------------------------------------------
AMORTIZED UNREALIZED UNREALIZED FAIR
COST GAINS LOSSES VALUE
------------ ------------ ------------ ------------
Securities available for sale:
Mortgage-Backed Securities .......... $ 8,991,563 $ 151,904 $ 10,964 $ 9,132,503
U.S. Government and Agencies ........ 14,069,932 254,401 34,337 14,289,996
State and Political Subdivisions .... 11,258,458 263,564 44,928 11,477,094
Equity Securities ................... 149,400 -- -- 149,400
------------ ------------ ------------ ------------
$ 34,469,353 $ 669,869 $ 90,229 $ 35,048,993
============ ============ ============ ============
</Table>
<Table>
<Caption>
DECEMBER 31, 2000
---------------------------------------------------------------
AMORTIZED UNREALIZED UNREALIZED FAIR
COST GAINS LOSSES VALUE
------------ ------------ ------------ ------------
Securities held to maturity:
U.S. Treasury Securities ............ $ 4,396,094 $ 33,308 $ 1,286 $ 4,428,116
U.S. Government and Agencies ........ 500,150 265 -- 500,415
------------ ------------ ------------ ------------
$ 4,896,244 $ 33,573 $ 1,286 $ 4,928,531
============ ============ ============ ============
</Table>
-41-
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
<Table>
<Caption>
DECEMBER 31, 2000
---------------------------------------------------------------
AMORTIZED UNREALIZED UNREALIZED FAIR
COST GAINS LOSSES VALUE
------------ ------------ ------------ ------------
Securities available for sale:
Mortgage-Backed Securities .......... $ 7,283,844 $ 48,672 $ 79,400 $ 7,253,116
U.S. Government and Agencies ........ 14,407,398 64,331 58,756 14,412,973
State and Political Subdivisions .... 9,198,091 84,537 30,676 9,251,952
Equity Securities ................... 149,400 -- -- 149,400
------------ ------------ ------------ ------------
$ 31,038,733 $ 197,540 $ 168,832 $ 31,067,441
============ ============ ============ ============
</Table>
Securities with book values of $11,046,657 and $14,124,852 at December 31, 2001
and 2000, respectively, were pledged to secure public deposits and other
transactions as required by law.
There were no gross-realized gains or gross-realized losses on sales of
securities for the fiscal years ended December 31, 2001, 2000 or 1999.
The maturities of investment securities at December 31, 2001 were as
follows:
<Table>
<Caption>
SECURITIES TO BE HELD
TO MATURITY
-----------------------------
AMORTIZED FAIR
YEARS TO MATURITY COST VALUE
------------ ------------
Less than one .............................. $ 1,798,541 $ 1,833,593
Greater than one but less than five ........ 507,742 520,000
Greater than five but less than ten ........ -- --
Greater than ten ........................... -- --
------------ ------------
$ 2,306,283 $ 2,353,593
============ ============
</Table>
<Table>
<Caption>
SECURITIES AVAILABLE
FOR SALE
-----------------------------
AMORTIZED FAIR
YEARS TO MATURITY COST VALUE
------------ ------------
Less than one .............................. $ 1,119,667 $ 1,127,335
Greater than one but less than five ........ 19,268,868 19,663,309
Greater than five but less than ten ........ 10,775,608 10,893,109
Greater than ten ........................... 3,305,210 3,365,240
------------ ------------
$ 34,469,353 $ 35,048,993
============ ============
</Table>
-42-
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Note 4. Loans
Major classifications of subsidiary Bank's loan portfolio at
December 31, are as follows:
<Table>
<Caption>
2001 2000
------------ ------------
Commercial, financial and
agricultural ............................ $ 6,737,502 $ 6,946,020
Real estate construction ................... 1,689,975 538,744
Real estate mortgage ....................... 23,604,139 20,052,654
Installment ................................ 5,719,154 5,122,190
------------ ------------
37,750,770 32,659,608
Unearned income ............................ -- --
------------ ------------
Net loans ............................... 37,750,770 32,659,608
Allowance for possible loan
losses .................................. (605,191) (579,481)
------------ ------------
$ 37,145,579 $ 32,080,127
============ ============
</Table>
The following is a summary of loans classified by type at December
31, 2001 and 2000:
<Table>
<Caption>
2001 2000
------------ ------------
Commercial, financial and
agricultural ............................ $ 6,737,502 $ 6,946,020
Real estate construction ................... 1,689,975 538,744
Real estate mortgage ....................... 8,535,968 7,112,467
------------ ------------
Total commercial ........................ 16,963,445 14,597,231
------------ ------------
Residential mortgage ....................... 15,068,171 12,940,187
Installment ................................ 5,719,154 5,122,190
------------ ------------
Total consumer .......................... 20,787,325 18,062,377
------------ ------------
Total loans ............................. $ 37,750,770 $ 32,659,608
============ ============
</Table>
-43-
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
The following summarizes the non-performing elements of the loan portfolio and
total foreclosed assets at December 31:
<Table>
<Caption>
2001 2000 1999
---------- ---------- ----------
Nonperforming loans:
Loans on nonaccrual ..................... $ 7,740 $ -- $ 69,889
Restructured loans which
are not on nonaccrual ................ 24,459 33,923 39,140
---------- ---------- ----------
Total nonperforming loans ..... 32,199 33,923 109,029
Other real estate and repossessed assets
received in complete or partial
satisfaction of loan obligations ........ -- -- --
---------- ---------- ----------
Total nonperforming assets ... $ 32,199 $ 33,923 $ 109,029
========== ========== ==========
Loans contractually past due 90 days
or more as to principal or interest,
but which are not on nonaccrual ......... $ 15,871 $ 11,061 $ 8,119
========== ========== ==========
</Table>
At December 31, 2001, the recorded investment in loans that were considered to
be impaired under SFAS No. 114 was $7,740. The related allowance for loan losses
was $2,000 for impaired loans. The average recorded investment in impaired loans
during the year ended December 31, 2001 was approximately $3,000. 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. For the year ended December 31, 2001, the Company
did not recognize interest income on impaired loans.
Interest income in the amount of $500 for 2001, $3,857 for 2000 and $9,501 for
1999 would have been recorded on nonperforming loans if they had been classified
as performing. The Company recorded $-0-, $2,490 and $2,733 of interest income
on nonperforming loans during 2001, 2000 and 1999, respectively.
The following is a summary of the allowance for loan losses for the three years
ended December 31, 2001:
<Table>
<Caption>
2001 2000 1999
---------- ---------- ----------
Balance, beginning of year ................. $ 579,481 $ 579,047 $ 595,762
Provisions charged to operating expense .... 42,000 10,500 --
Recoveries on loans ........................ 1,614 303 2,938
Loans charged off .......................... (17,904) (10,369) (19,653)
---------- ---------- ----------
Balance, end of year ....................... $ 605,191 $ 579,481 $ 579,047
========== ========== ==========
</Table>
-44-
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Note 5. Related Party Transactions
In the ordinary course of business, loans have been made to
directors and executive officers and their associates. Such loans to
these related parties were made on substantially the same terms,
including interest rates and collateral, as those prevailing at the
time for comparable transactions with other persons. Loans to these
related parties were approximately $2,146,994 and $2,273,824 at
December 31, 2001 and 2000, respectively. The following provides an
analysis of the activity with respect to loans to related parties:
<Table>
Balance at January 1, 2001 ............. $ 2,273,824
New loans made ......................... 1,068,520
Repayment on loans ..................... (1,195,350)
------------
Balance at December 31, 2001 ........... $ 2,146,994
============
</Table>
Note 6. Bank Premises and Equipment
Bank premises and equipment, at cost, consisted of the following as
of December 31:
<Table>
<Caption>
2001 2000 1999
------------ ------------ ------------
Land ................................... $ 459,386 $ 459,386 $ 384,387
Premises and leasehold
improvements ..................... 2,235,452 1,863,020 1,811,929
Furniture and equipment ................ 1,469,994 1,341,381 1,242,411
Construction in progress ............... -- 154,808 52,704
4,164,832 3,818,595 3,491,431
------------ ------------ ------------
Less accumulated depreciation
and amortization ................... 2,394,217 2,268,661 2,383,132
------------ ------------ ------------
Total .......................... $ 1,770,615 $ 1,549,934 $ 1,108,299
============ ============ ============
</Table>
Depreciation and amortization expense included in non-interest
expense was $180,899 in 2001, $161,122 in 2000, and $129,296 in
1999.
-45-
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Note 7. Deposits
Deposit account balances at December 31, 2001 and 2000, are
summarized as follows:
<Table>
<Caption>
2001 2000
------------ ------------
Non-interest bearing ................... $ 27,780,347 $ 25,925,833
Interest bearing demand ................ 16,021,373 15,374,416
Savings deposits ....................... 10,625,722 9,357,554
Time deposits under $100,000 ........... 16,949,960 15,481,998
Time deposits over $100,000 ............ 7,310,533 5,178,681
------------ ------------
$ 78,687,935 $ 71,318,482
============ ============
</Table>
Time deposits maturing in years ending December 31, as of December
31, 2001:
<Table>
2002 ........................... $ 22,600,735
2003 ........................... 1,394,898
2004 ........................... 257,308
2005 ........................... 7,552
------------
$ 24,260,493
============
</Table>
The Bank held related party deposits of approximately $2,449,000 and
$2,345,000 at December 31, 2001 and 2000.
Note 8. Employee Benefit Plan
The Bank maintains a 401(k) Savings Plan available to employees with
over one year of service. The Bank matches 50% of the salary
deferral, up to a maximum of 3% of compensation for 2001, 2000 and
1999, which becomes vested after five years of service. Total
contributions to the plan by the Bank were $19,612 for 2001, $19,050
for 2000 and $19,735 for 1999. The Bank has a non-qualified deferred
compensation benefit plan for certain executives of the Company. The
total deferred compensation expense for 2001, 2000 and 1999 was
$50,712, $52,717 and $12,384, respectively.
-46-
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Note 9. Lease Commitments
The Company leases land, buildings, and equipment under cancelable
and noncancelable leases. The leased properties are used primarily
for banking purposes.
Future minimum payments, by year and in the aggregate, for
noncancelable operating leases with initial or remaining terms of
one year or more consisted of the following at December 31, 2001:
<Table>
<Caption>
YEAR ENDING AMOUNT
-----------
2002............................................... $ 45,871
2003............................................... 40,771
2004............................................... 35,671
2005............................................... 35,671
2006............................................... 35,671
-----------
Total future minimum lease payments................ $ 193,655
===========
</Table>
All leases contain options to extend the lease term upon expiration
and will probably be exercised.
The total rental expense on operating leases for the years ended
December 31, 2001, 2000, and 1999, amount to $60,380, $70,443 and
$68,360, respectively.
One of the Bank's branch offices is leased from a corporation which
is owned by a shareholder and director of the Bank. Lease expense
related to this property totaled $20,671 for the 2001, 2000 and 1999
fiscal years.
Note 10. Other Operating Expenses
The composition of other operating expenses for each of the three
years for the period ended December 31 are as follows:
<Table>
<Caption>
2001 2000 1999
---------- ---------- ----------
FDIC and Louisiana assessments ......... $ 31,109 $ 31,602 $ 26,948
Advertising ............................ 79,464 80,123 56,479
Office supplies ........................ 87,878 80,582 82,594
Postage ................................ 58,994 56,450 57,560
Insurance .............................. 8,811 11,730 15,503
ATM expenses ........................... 41,800 34,691 35,940
Director fees .......................... 101,200 101,200 92,650
Other .................................. 379,084 345,046 371,221
---------- ---------- ----------
$ 788,340 $ 741,424 $ 738,895
========== ========== ==========
</Table>
-47-
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Note 11. Income Taxes
Income tax expense includes amounts currently payable and amounts
deferred to or from other years as a result of differences in the
timing of recognition of income and expense for financial reporting
and federal tax purposes. The components of income tax expense are
as follows:
<Table>
<Caption>
2001 2000 1999
---------- ---------- ----------
Current federal income tax
expense ................................. $ 392,420 $ 438,945 $ 376,331
Deferred federal income tax
expense (benefit) ....................... (13,210) (12,617) 26,602
---------- ---------- ----------
$ 379,210 $ 426,328 $ 402,933
========== ========== ==========
Included in shareholders' equity:
Deferred tax expense
(benefit) related to the
change in net unrealized
gain (loss) on securities
available for sale ...................... $ 187,318 $ 295,051 $ (417,266)
========== ========== ==========
</Table>
-48-
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
The reconciliation of the federal statutory income tax rate to the
Company's effective rate is summarized as follows for the years
ended December 31:
<Table>
<Caption>
2001 2000 1999
--------------------------- --------------------------- ---------------------------
Amount Rate Amount Rate Amount Rate
---------- ---------- ---------- ---------- ---------- ----------
Tax based on
federal
statutory rate .... $ 515,171 34.0% $ 554,059 34.0% $ 506,083 34.0%
Effect of tax-
exempt income ..... (151,359) (10.0) (140,929) (8.6) (116,718) (7.8)
Other ................ 15,398 1.0 13,198 .8 13,568 .9
---------- ---------- ---------- ---------- ---------- ----------
$ 379,210 25.0% $ 426,328 26.2% $ 402,933 27.1%
========== ========== ========== ========== ========== ==========
</Table>
Deferred income taxes are based on differences between the bases of
assets and liabilities for financial statement purposes and tax
reporting purposes. The tax effects of the cumulative temporary
differences which create deferred tax assets and liabilities are as
follows:
<Table>
<Caption>
2001 2000
---------- ----------
Deferred tax assets:
Allowance for loan losses ............... $ 31,872 $ 17,592
Deferred executive compensation ......... 51,496 34,254
Other ................................... 5,998 5,569
---------- ----------
Total deferred tax assets .............. 89,366 57,415
---------- ----------
Deferred tax liabilities:
Accumulated depreciation ............. 56,365 37,624
---------- ----------
Total deferred tax liabilities ....... 56,365 37,624
---------- ----------
Net deferred tax asset ..................... $ 33,001 $ 19,791
========== ==========
</Table>
Management estimates realizability of a deferred tax asset based on
the Company's ability to generate taxable income in the future. A
deferred tax valuation reserve is established, if needed, to limit
the net deferred tax asset to its realizable value.
Note 12. Earnings Per Share
The earnings per share computations are based on weighted average
number of shares outstanding during each year of 117,016, 117,673
and 117,884 for the years ended December 31, 2001, 2000 and 1999,
respectively.
-49-
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Note 13. Financial Instruments
Generally accepted accounting principles require disclosure of
fair value information about financial instruments for which it is
practicable to estimate fair value, whether or not the financial
instruments are recognized in the financial statements. When
quoted market prices are not available, fair values are based on
estimates using present value or other valuation techniques. Those
techniques are significantly affected by the assumptions used,
including the discount rate and estimates of future cash flows.
The derived fair value estimates cannot be substantiated through
comparison to independent markets and, in many cases, could not be
realized in immediate settlement of the instrument. Certain
financial instruments and all non-financial instruments are
excluded from these disclosure requirements. Further, the
disclosures do not include estimated fair values for items which
are not financial instruments but which represent significant
value to the Bank, among them, core deposit intangibles, loan
servicing rights and other fee-generating businesses. Accordingly,
the aggregate fair value amounts presented do not represent the
underlying value of the Company.
The carrying amount of cash and short-term investments and demand
deposits approximates the estimated fair value of these financial
instruments. The estimated fair value of securities is based on
quoted market prices, dealer quotes and prices obtained from
independent pricing services. The estimated fair value of loans
and interest bearing deposits is based on present values using
applicable risk-adjusted spreads to the appropriate yield curve to
approximate current interest rates applicable to each category of
these financial instruments.
Interest rates were not adjusted for changes in credit risk of
performing commercial loans for which there are no known credit
concerns. Management segregates loans into appropriate risk
categories and believes the risk factor embedded in the interest
rates results in a fair valuation of these loans on an entry-value
basis.
Variances between the carrying amount and the estimated fair value
of loans reflect both credit risk and interest rate risk. The Bank
is protected against changes in credit risk by the allowance for
possible loan losses of $605,191 at December 31, 2001.
The fair value estimates presented are based on information
available to management as of December 31, 2001. Although
management is not aware of any factors that would significantly
affect the estimated fair value amounts, these amounts have not
been revalued for purposes of these financial statements since
that date. Therefore, current estimates of fair value may differ
significantly from the amounts presented. None of the assets or
liabilities included in the table below are held for trading
purposes.
The Bank issues financial instruments in the normal course of
business to meet the financing needs of its customers and to
reduce exposure to fluctuations in interest rates. These financial
instruments include commitments to extend credit and letters of
credit and involve, to varying degrees, elements of credit and
interest rate risk in excess of the amount recognized on the
balance sheet.
-50-
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
<Table>
<Caption>
CARRYING FAIR
AMOUNT VALUE
--------------- ---------------
ASSETS
Cash and cash equivalents................................. $ 14,246,100 $ 14,246,100
Interest-bearing deposits with banks...................... $ 99,000 $ 99,000
Securities held to maturity............................... $ 2,306,283 $ 2,353,593
Securities available for sale............................. $ 34,469,353 $ 35,048,993
Loans..................................................... $ 37,750,770 $ 39,118,000
LIABILITIES
Demand deposits........................................... $ 27,780,347 $ 27,780,347
NOW accounts.............................................. $ 13,370,482 $ 13,370,482
Money market accounts..................................... $ 2,650,891 $ 2,650,891
Savings................................................... $ 10,625,722 $ 10,625,722
Time deposits............................................. $ 24,260,493 $ 24,587,558
</Table>
Commitments to extend credit are legally binding, conditional agreements
generally having fixed expiration or termination dates and specified interest
rates and purposes. These commitments generally require customers to maintain
certain credit standards. Collateral requirements and loan-to-value ratios are
the same as those for funded transactions and are established based on
management's credit assessment of the customer. Commitments may expire without
being drawn upon. Therefore, the total commitment amount does not necessarily
represent future funding requirements. The Bank's experience has been that most
loan commitments are drawn upon by customers. Outstanding loan commitments at
December 31, 2001 were $5,281,938 and $4,631,059 at December 31, 2000.
The Bank issues letters of credit and financial guarantees (standby letters of
credit) whereby it agrees to honor certain financial commitments in the event
its customers are unable to perform. The majority of the standby letters of
credit consist of performance guarantees. Management conducts regular reviews of
all outstanding standby letters of credit, and the results of these reviews are
considered in assessing the adequacy of the Bank's reserve for possible loan
losses. The letters of credit balance was $537,810 and $395,664 at December 31,
2001 and 2000, respectively. The Bank has not incurred any losses in its
commitments in 2001 or 2000. Management does not anticipate any material losses
related to these instruments.
-51-
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
The estimated fair values of off-balance-sheet financial
instruments are not material. A summary of the notional amounts of
the Bank's financial instruments with off-balance-sheet risk at
December 31, 2001 and 2000 are as follows:
<Table>
<Caption>
2001 2000
------------- --------------
Commitments to extend credit.................................... $ 5,281,938 $ 4,631,059
Credit card arrangements........................................ $ 2,711,098 $ 2,193,207
Standby letters of credit....................................... $ 537,810 $ 395,664
</Table>
Note 14. Regulatory Matters
The Bank is subject to the dividend restrictions set forth by the
Louisiana Commissioner of Financial Institutions. Under such
restrictions, the Bank may not, without the prior approval of the
Commissioner of Financial Institutions, declare dividends in
excess of the sum of the current year and prior year earnings less
dividends paid during these periods. The dividends as of December
31, 2001, that the Bank could declare without the approval of the
Commissioner of Financial Institutions, amounted to $1,831,382.
The Bank is also required to maintain minimum amounts of capital
to total "risk weighted" assets, as defined by the banking
regulators. At December 31, 2001, the Bank is required to have
minimum Tier 1 risk-based, Tier 1 leverage capital, and Total
capital ratios of 4%, 4% and 8%, respectively. The Bank's actual
ratios at that date were 27.16%, 14.14%, and 28.41%, respectively.
At December 31, 2000, the Bank's actual ratios were 29.0%, 14.14%,
and 30.25%, respectively.
Under Section 18J of the Federal Deposit Insurance Act, which is
subject to Section 23A of the Federal Reserve Act, the Bank cannot
make loans, extensions of credit, repurchase agreements,
investments, and advances, which exceed 10 percent of its capital
stock and surplus, to an affiliate. Such loans must be
collateralized by assets with market values of 100% to 130% of
loan amounts, depending upon the nature of the collateral.
As of December 31, 2001 and 2000, the most recent notifications
from the Federal Deposit Insurance Corporation categorized the
Bank as well capitalized under the regulatory framework for prompt
action. To be categorized as well capitalized, the Bank must
maintain minimum Total risk-based, Tier 1 risk-based, and Tier 1
leverage ratios as indicated above. There are no conditions or
events since those notifications that management believes have
changed the Bank's category.
-52-
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Note 15. American Bancorp, Inc. (Parent Company Only)
The following financial statements of American Bancorp, Inc.
(Parent Company Only) include the Bank under the equity method of
accounting.
BALANCE SHEETS
<Table>
<Caption>
DECEMBER 31,
----------------------------
2001 2000
------------ ------------
ASSETS
Cash on deposit with subsidiary ......................... $ 23,670 $ 26,850
Investment in subsidiary ................................ 12,235,565 11,044,124
Due from American Bank & Trust Company .................. 67,173 28,013
------------ ------------
Total assets ........................................ $ 12,326,408 $ 11,098,987
============ ============
LIABILITIES
Accrued income taxes payable ............................ $ 61,688 $ 22,528
------------ ------------
Total liabilities ................................... 61,688 22,528
------------ ------------
SHAREHOLDERS' EQUITY
Common stock: $5 par value, 10,000,000
shares authorized; 120,000 shares
issued, 116,589 and 117,630 shares
outstanding, respectively ............................ 600,000 600,000
Surplus ................................................. 2,150,000 2,150,000
Retained earnings ....................................... 9,344,901 8,442,150
Net unrealized gain (loss) on securities
available for sale, net of tax of $197,078
and $9,760, respectively ............................. 382,562 18,946
Treasury stock, 3,411 and 2,370 shares
at cost, respectively ................................ (212,743) (134,637)
------------ ------------
Total shareholders' equity ........................ 12,264,720 11,076,459
------------ ------------
Total liabilities and shareholders' equity ........ $ 12,326,408 $ 11,098,987
============ ============
</Table>
-53-
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
American Bancorp, Inc. (Parent Company Only)
STATEMENTS OF INCOME
<Table>
<Caption>
YEARS ENDED DECEMBER 31,
------------------------------------------
2001 2000 1999
------------ ------------ ------------
Income:
Dividends from bank subsidiary .... $ 321,300 $ 213,500 $ 230,000
------------ ------------ ------------
Expenses:
Directors fees .................... 12,000 12,000 12,000
Other expenses .................... 1,126 1,801 1,057
------------ ------------ ------------
13,126 13,801 13,057
------------ ------------ ------------
Earnings before income taxes
and equity in undistributed
earnings of subsidiary ............ 308,174 199,699 216,943
Provision for income taxes ........... -- -- --
------------ ------------ ------------
Earnings before equity in
undistributed earnings of
subsidiary ........................ 308,174 199,699 216,943
Equity in undistributed
earnings of subsidiary ............ 827,825 1,003,557 868,602
------------ ------------ ------------
Net income ..................... $ 1,135,999 $ 1,203,256 $ 1,085,545
============ ============ ============
</Table>
-54-
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
American Bancorp, Inc. (Parent Company Only)
STATEMENTS OF CASH FLOWS
<Table>
<Caption>
YEARS ENDED DECEMBER 31,
--------------------------------------------
2001 2000 1999
------------ ------------ ------------
OPERATING ACTIVITIES
Net income .................................. $ 1,135,999 $ 1,203,256 $ 1,085,545
Adjustments to reconcile net
income to net cash provided
by operating activities:
Equity in undistributed
earnings of subsidiary .......... (827,825) (1,003,557) (868,602)
(Increase) decrease in other assets ... (39,160) 5,097 (12,779)
Increase (decrease) in income taxes
payable ......................... 39,160 (5,097) 12,779
------------ ------------ ------------
Net cash provided by
operating activities ............ 308,174 199,699 216,943
------------ ------------ ------------
INVESTING ACTIVITIES
Purchase of treasury stock .................. (78,106) (5,236) (44,706)
------------ ------------ ------------
Net cash used in
investing activities ............. (78,106) (5,236) (44,706)
------------ ------------ ------------
FINANCING ACTIVITIES
Dividends paid to shareholders .............. (233,248) (199,983) (170,683)
------------ ------------ ------------
Net cash used in
financing activities ............ (233,248) (199,983) (170,683)
------------ ------------ ------------
Increase (decrease) in cash
and cash equivalents ............ (3,180) (5,520) 1,554
Cash and cash equivalents at
beginning of year ........................... 26,850 32,370 30,816
------------ ------------ ------------
Cash and cash equivalents at
end of year ................................. $ 23,670 $ 26,850 $ 32,370
============ ============ ============
</Table>
-55-
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Note 16. Concentrations of Credit Risk
Substantially, all of the Bank's loans, commitments and standby
letters of credit have been granted to customers in the Bank's
market area of South Louisiana. Investments in state and municipal
securities also involve governmental entities within the Bank's
market area. The concentrations of credit by type of loan are set
forth in Note 4. The distribution of commitments to extend credit
approximates the distribution of loans outstanding. Standby
letters of credit were granted primarily to commercial borrowers.
The Bank, as a matter of policy, does not extend credit to any
single borrower or group of related borrowers in excess of
$1,375,000.
At December 31, 2001, the Bank has loans outstanding to multiple
numbers of borrowers engaged in the medical industry and the legal
profession. The loans to the medical industry were approximately
$6,515,000, while the loans to the legal profession were
approximately $3,820,000. There were no significant nonperforming
loans outstanding in these two concentrations.
Note 17. Contingencies
In the ordinary course of business, the Bank has various
outstanding commitments and contingent liabilities that are not
reflected in the accompanying consolidated financial statements.
In addition, the Bank is a defendant in certain claims and legal
actions arising in the ordinary course of business. In the opinion
of management, after consultation with legal counsel, the ultimate
disposition of these matters is not expected to have a material
adverse effect on the consolidated financial condition of the
Bank.
-56-
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED)
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA
<Table>
<Caption>
2001
-------------------------------------------------
IV III II I
---------- ---------- ---------- ----------
Interest income .................................................... $ 1,351 $ 1,341 $ 1,329 $ 1,316
Interest expense ................................................... 333 394 402 400
---------- ---------- ---------- ----------
Net interest income ................................................ 1,018 947 927 916
Provision for possible loan losses ................................. 11 10 11 10
---------- ---------- ---------- ----------
Net interest income after provision ................................ 1,007 937 916 906
Non interest income, excluding securities
gains ......................................................... 141 155 155 161
Net securities gains ............................................... -- -- -- --
Non-interest expense ............................................... 802 645 688 728
---------- ---------- ---------- ----------
Income before income tax expense ................................... 346 447 383 339
Income tax expense ................................................. 81 115 100 83
---------- ---------- ---------- ----------
Net income ......................................................... $ 265 $ 332 $ 283 $ 256
========== ========== ========== ==========
Earnings per common share .......................................... $ 2.27 $ 2.84 $ 2.41 $ 2.18
========== ========== ========== ==========
Market price of common stock
High .......................................................... $ 80 $ 76 $ 74 $ 71
Low ........................................................... $ 80 $ 76 $ 74 $ 71
Close ......................................................... $ 80 $ 76 $ 74 $ 71
Average shares outstanding ......................................... 116,601 116,931 117,167 117,364
</Table>
<Table>
<Caption>
2000
-------------------------------------------------
IV III II I
---------- ---------- ---------- ----------
Interest income .................................................... $ 1,330 $ 1,311 $ 1,297 $ 1,277
Interest expense ................................................... 401 393 380 371
Net interest income ................................................ 929 918 917 906
Provision for possible loan losses ................................. 11 -- -- --
---------- ---------- ---------- ----------
Net interest income after provision ................................ 918 918 917 906
Non-interest income, excluding securities
gains ......................................................... 140 159 172 184
Net securities gains ............................................... -- -- -- --
Non-interest expense ............................................... 728 642 662 642
---------- ---------- ---------- ----------
Income before income tax expense ................................... 330 435 427 448
Income tax expense ................................................. 75 117 115 119
---------- ---------- ---------- ----------
Net income ......................................................... $ 255 $ 318 $ 312 $ 329
========== ========== ========== ==========
Earnings per common share .......................................... $ 2.17 $ 2.70 $ 2.65 $ 2.80
========== ========== ========== ==========
Market price of common stock
High .......................................................... $ 68 $ 64 $ 62 $ 61
Low ........................................................... $ 30 $ 64 $ 62 $ 61
Close ......................................................... $ 68 $ 64 $ 62 $ 61
Average shares outstanding ......................................... 117,704 117,697 117,657 117,635
</Table>
-57-
-58-
OFFICERS AND DIRECTORS OF
AMERICAN BANK & TRUST COMPANY
CHAIRMAN OF THE BOARD AND PRESIDENT
Salvador L. Diesi, Sr.
CHIEF EXECUTIVE OFFICER AND EXECUTIVE VICE-PRESIDENT
Ronald J. Lashute
SENIOR VICE-PRESIDENT
Walter J. Champagne, Jr.
<Table>
VICE-PRESIDENTS
Charlene Louviere George H. Comeau
Angel Powell Chief and Financial Officer
Mark J. LeBlanc Cashier
ASSISTANT VICE-PRESIDENTS
David Gremillion Christopher Choate
J. Karla Manuel
ASSISTANT CASHIERS
Elaine D. Ardoin Elizabeth Miller
Deanna Cox Beryl Bergeron
Sally Hooks Stephanie Richard
Cindy Whitmore
DIRECTORS
Jasper J. Artall Salvador L. Diesi, Sr.
Walter J. Champagne, Jr. Alvin Haynes II
Attaway Darbonne Charles Jagneaux
J. C. Diesi Sylvia Sibille
OFFICES LOCATED IN
OPELOUSAS KROTZ SPRINGS
LAFAYETTE PORT BARRE
LAWTELL
</Table>
-59-
OFFICERS AND DIRECTORS OF
AMERICAN BANCORP, INC.
CHAIRMAN OF THE BOARD AND PRESIDENT
Salvador L. Diesi, Sr.
SECRETARY AND TREASURER
Ronald J. Lashute
<Table>
<Caption>
BOARD OF DIRECTORS OCCUPATION AND MAIN AFFILIATION
Jasper J. Artall Farmer.
Walter J. Champagne, Jr. Senior Vice-President of American
Bank & Trust Company; and Investor in
farming interest.
J.C. Diesi President of Diesi Pontiac-Cadillac-
Buick, Inc.
Salvador L. Diesi, Sr. Chairman of the Board of Directors and President of
American Bancorp, Inc. and American Bank & Trust
Company; Investor in and operator of Little Capitol of
Louisiana, Inc. (Gas Station, Convenience Store and
Video Poker); Commercial real estate investor;
Investor in farming interest; and Attorney at Law.
Ronald J. Lashute Chief Executive Officer and Executive Vice President
of American Bank & Trust Company and
Secretary and Treasurer of American Bancorp, Inc.
</Table>
-60-
-61-