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FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
QUARTERLY REPORT UNDER SECTION 13 OR 15 (D) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the Quarter Ended June 30, 1995
Commission File Number 0-11928
AMERICAN BANCORP, INC.
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(Exact name of registrant as specified in its charter)
LOUISIANA 72-0951347
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(State or other jurisdiction of (I R S Employer I. D. Number)
incorporation or organization)
328 EAST LANDRY STREET, OPELOUSAS, LA 70571-1579
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(Address of principal executive office) (Zip Code)
(318) 948-3056
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(Registrant's telephone number, including area code)
NOT APPLICABLE
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(Former name, address, fiscal year, if changed since last report)
Indicate by check mark whether the registrant: (1) has filed all reports
required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter periods that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. YES X NO
--- ---
APPLICABLE ONLY TO CORPORATE ISSUERS:
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practical date.
Common stock, $5 Par Value-------120,000 shares as of July 15, 1995
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AMERICAN BANCORP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
JUNE 30, 1995
NOTE - A BASIS OF PRESENTATION
The accompanying unaudited consolidated financial statements have been
prepared in accordance with generally accepted principles of accounting for
instructions to Form 10-Q and Rule 10-01 of Regulations S-X. Accordingly,
they do not include all of the information and footnotes required by
generally accepted accounting principles for complete financial statements.
In the opinion of management, all adjustments (consisting of normal
recurring accruals) considered necessary for a fair presentation have been
included.
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AMERICAN BANCORP, INC.
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
For the Six Month Periods Ended June 30, 1995 & 1994
(In Thousands)
NET
UNREALIZED
GAINS(LOSS) COMMON RETAINED
SECURITIES STOCK SURPLUS EARNINGS TOTAL
----------- ------ ------- -------- ------
Balance 12/31/93 $0 $600 $2,150 $2,184 $4,934
Net Income (Loss) 452 452
Cash Dividends 0 0
Change in Unrealized
Gains/Losses 66 66
------ ----- ------ ------ ------
Balance 6/30/94 $66 $600 $2,150 $2,636 $5,452
====== ===== ====== ====== ======
Balance 12/31/94 ($1) $600 $2,150 $3,069 $5,818
Net Income (Loss) 497 497
Cash Dividends 0 0
Change in Unrealized
Gains/Losses 75 75
------ ----- ------ ------ ------
Balance 6/30/95 $74 $600 $2,150 $3,566 $6,390
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AMERICAN BANCORP, INC.
(PARENT COMPANY ONLY)
BALANCE SHEET
June 30, 1995 and 1994
(In Thousands)
ASSETS 1995 1994
------ ---- ----
Cash 3 5
Investment in Subsidiary 6,274 5,376
Dividend Receivable 0 0
Due From Subsidiary 339 71
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TOTAL ASSETS $6,616 $5,452
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LIABILITIES
-----------
Federal Income Taxes Payable 226 0
Other Liabilities 0 0
------ ------
TOTAL LIABILITIES $226 $0
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SHAREHOLDERS' EQUITY
--------------------
Unrealized Gain (Loss) on Securities
Available for Sale 74 66
Common Stock, $5 par value; authorized
10,000,000 shares; issued 120,000 shares 600 600
Surplus 2,150 2,150
Retained Earnings 3,566 2,636
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TOTAL EQUITY 6,390 5,452
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TOTAL LIABILITIES & EQUITY $6,616 $5,452
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AMERICAN BANCORP, INC.
CONSOLIDATED BALANCE SHEETS
June 30, 1995 and 1994
(In Thousands)
1995 1994
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ASSETS
------
Cash and Due From Banks 3,655 3,542
Interest Bearing Deposits 891 4,256
Securities Being Held to Maturity 18,998 13,344
Securities Available for Sale 3,546 3,087
Federal Funds Sold 5,400 1,450
Loans - Net 26,106 25,939
Bank Premises and Equipment 1,310 1,447
Other Real Estate Owned 14 17
Accrued Interest Receivable 483 342
Deferred Tax Asset 27 16
Prepaid Expenses and Other Assets 275 295
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TOTAL ASSETS $60,705 $53,735
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LIABILITIES
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Deposits:
Non-Interest Bearing 16,146 13,173
Interest Bearing 37,797 34,958
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Total Deposits 53,943 48,131
Accrued Interest Payable 99 68
Deferred Income Tax Credits 0 0
Accrued Expenses and Other Liabilities 273 84
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TOTAL LIABILITIES $54,315 $48,283
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SHAREHOLDERS' EQUITY
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Unrealized Gain (Loss) on Securities
Available for Sale 74 66
Common Stock, $5 par value; authorized
10,000,000 shares; issued 120,000 shares 600 600
Surplus 2,150 2,150
Retained Earnings 3,566 2,636
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TOTAL SHAREHOLDERS' EQUITY $6,390 $5,452
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TOTAL LIABILITIES & EQUITY $60,705 $53,735
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See Notes to Financial Statements.
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AMERICAN BANCORP, INC.
(PARENT COMPANY ONLY)
INCOME STATEMENT
For the Six Month Periods Ended June 30, 1995 and 1994
(In Thousands)
1995 1994
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INCOME FROM SUBSIDIARY
----------------------
Dividends $0 $0
OPERATING EXPENSES
------------------
Other Expenses 4 0
Interest Expense 0 0
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TOTAL EXPENSES $4 $0
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Earnings (loss) before income tax benefit
and equity in undistributed earnings of
subsidiary ($4) $0
Income tax (benefit) 5 (71)
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Earnings (loss) before equity in undistributed
earnings of subsidiary ($9) $71
Equity in undistributed earnings of
subsidiary 506 381
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Net Income $497 $452
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AMERICAN BANCORP, INC.
CONSOLIDATED STATEMENTS OF INCOME
For the Six Month Periods Ended June 30, 1995 and 1994
(In Thousands)
INCREASE
1995 1994 (DECREASE)
------ ------ ---------
INTEREST INCOME:
Interest and fees on loans $1,278 $1,100 178
Interest on investment securities:
Taxable 652 423 229
Tax-Exempt 9 2 7
Other Interest 156 143 13
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TOTAL INTEREST INCOME $2,095 $1,668 427
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INTEREST EXPENSE:
Interest on deposits $556 $454 102
Interest on short-term borrowings 0 0 0
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TOTAL INTEREST EXPENSE $556 $454 102
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NET INTEREST INCOME $1,539 $1,214 325
Provision for possible loan losses 0 12 (12)
------ ------ ------
Net Interest Income after provision for
possible loan losses $1,539 $1,202 337
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NON-INTEREST INCOME:
Service charges on deposit accounts $275 $271 4
Investment securities gains (losses) 0 0 0
Other 50 51 (1)
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TOTAL NON-INTEREST INCOME $325 $322 3
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NON-INTEREST EXPENSE:
Salaries and Employee Benefits $554 $550 4
Net Occupancy Expense 274 272 2
Net cost of operation of O.R.E.O. (1) (1) 0
Other 318 301 17
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TOTAL NON-INTEREST EXPENSE $1,145 $1,122 23
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INCOME BEFORE INCOME TAXES AND
EXTRAORDINARY ITEMS $719 $402 317
INCOME TAX (BENEFIT) 222 (50) 272
------ ------ ------
INCOME BEFORE EXTRAORDINARY ITEMS $497 $452 45
EXTRAORDINARY ITEMS 0 0 0
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NET INCOME $497 $452 45
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Net income per share of common stock $4.14 $3.77 $0.38
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See Notes to Consolidated Financial Statements
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AMERICAN BANCORP, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Six Month Periods Ended June 30, 1995 and 1994
1995 1994
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OPERATING ACTIVITIES
Net income $497 $452
Adjustments to reconcile net income to net cash
provided by operating activities:
Accretion of investment security discounts (11) (4)
Amortization of investment security premiums 5 2
Depreciation 87 85
Provision for loan losses 0 12
Gain on sale of other real estate 0 1
Gain/loss on sale of property and equipment 0 0
Decrease (increase) in accrued interest receivable (53) (64)
Increase (decrease) in accrued interest payable 19 6
Increase (decrease) in other accrued liabilities 261 (25)
Decrease(increase) in other asset (27) (17)
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Net cash provided by operating activities $778 $448
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INVESTING ACTIVITIES
Proceeds from sales & maturities of available for sale securities $205 0
Proceeds from sales & maturities of held to maturity securities 2,500 3,188
Purchases of available for sale securities (504) 0
Purchases of held to maturity securities (5,012) (6,479)
Net (increase) decrease in interest-bearing deposits with banks 1,583 495
Net (increase) decrease in loans 947 482
Net decrease (increase) in federal funds sold 650 725
Net decrease (increase) in other real estate 0 0
Proceeds from sale of assets 0 130
Purchases of property & equipment (22) (32)
Other 11 19
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Net cash provided (used) by investing activities $358 ($1,472)
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FINANCING ACTIVITIES
Net increase (decrease) in non-interest bearing deposits $154 $610
Net increase (decrease) in int-bearing deposits (5,441) 846
Dividends paid 0 0
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Net cash provided (used) by financing activities ($5,287) $1,456
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Increase (decrease) in cash and cash equivalents ($4,151) $432
Cash and cash equivalents at beginning of year 7,806 3,110
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Cash and cash equivalents at end of period $3,655 $3,542
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Cash interest income received $2,042 $1,604
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Cash interest expense paid $537 $448
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Cash federal income taxes paid $5 $0
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NOTES TO FINANCIAL STATEMENTS
NONPERFORMING ASSETS:
Non-performing assets include nonaccrual loans, loans which are contractually 90
days past due, restructured loans, and foreclosed assets. Restructured loans
are loans which, due to a deteriorated financial condition of the borrower, have
a below market yield.
See non-performing asset schedule as of June 30, 1995 below:
Non-Performing Loans:
Loans on Non-Accrual $2
Loans past due 90 days or more as to
principal or interest, but not on
non-accrual 11
Loans & leases restructured and in
compliance with terms 23
------
$36
Other Real Estate and repossessed assets
received in complete or partial
satisfaction of debt 14
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TOTAL NONPERFORMING ASSETS $50
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INVESTMENT SECURITIES:
A comparison of the book value and estimated market value of investment
securities as of June 30, 1995 is as follows:
HELD-TO-MATURITY AVAILABLE-FOR-SALE
AMORT MARKET AMORT MARKET
COST VALUE COST VALUE
U.S. Treasury $5,510 $5,513 $0 0
U.S. Agencies 13,488 13,476 2,931 3,028
State & Political Subdivisions 0 0 503 518
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TOTAL $18,998 $18,989 $3,434 $3,546
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LOANS:
Major classifications of loans are as follows as of June 30, 1995:
Commercial, Financial and Agricultural $5,794
Real Estate Construction 29
Real Estate Mortgage 16,285
Consumer Loans 3,846
Industrial Revenue Bonds 773
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TOTAL LOANS $26,727
Allowance for possible loan losses 621
Unearned income 0
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$26,106
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DEPOSITS
Deposits decreased $5,287,000 or 8.93% since December 31, 1994. The largest
percentage of this decrease is attributed to interest bearing deposits which
decreased $5,441,000 or 12.58% This decrease is a result of seasonable
variations in deposits of a public body of which the Bank acts as fiscal agent.
LOANS
Loans have decreased $947,000 or 3.50% since December 31, 1994.
INVESTMENTS
Investments have increased $2,931,000 or 14.94% since December 31, 1994.
INSIDERS
Directors, Executive Officers and 10% shareholders and their related interest
had loans outstanding totaling $1,065,000 at June 30, 1995.
LIQUIDITY
Liquidity is generally defined as the ability to meet cash requirements on
a timely basis. Maintenance of an adequate liquidity is essential to the
financial structure of a bank. Normal guidelines indicate an adequate
liquidity for a bank is 20% of liabilities. The banks liquidity
was 55.49% on June 30, 1995.
CAPITAL RESOURCES
Earnings of $497,000 for the first six months of 1995 have increased from
$452,000 for the same period in 1994. The equity position of the corporation
has improved to 10.53% at June 30, 1995 as compared to 10.15% at
June 30, 1994.
RESULTS OF OPERATIONS
As previously stated earnings for the first six months amounted to $497,000.
The provision for loan losses is usually determined by the size of the loan
portfolio, the level of non-performing loans to assets, economic conditions,
a thorough analysis of borrowers and their financial conditions, and the
past history of charge offs. In light of the above factors management has
determined the reserve to be adequate. The reserve amounts to $621,000 or
2.32% of the outstanding loans at June 30, 1995.
CONTINGENT LIABILITIES
In the normal course of business, the bank becomes involved in legal
proceedings. It is the opinion of management that the resulting
liability if any, for any pending litigation is negligible.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
AMERICAN BANCORP, INC.
August 3, 1995 /s/ SALVADOR L. DIESI
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DATE Salvador L. Diesi
Chairman of the Board / President
August 3, 1995 /s/ RONALD J. LASHUTE
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DATE Ronald J. Lashute
Secretary/Treasurer
of the Board
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INDEX TO EXHIBITS
EXHIBIT
NUMBER DESCRIPTION
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27 Financial Data Schedule