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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 September 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 October 15,1995
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AMERICAN BANCORP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
SEPTEMBER 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 Nine Month Periods Ended September 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) 717 717
Cash Dividends 0 0
Change in Unrealized
Gains/Losses 41 41
--------- --------- --------- --------- ---------
Balance 9/30/94 $41 $600 $2,150 $2,901 $5,692
========= ========= ========= ========= =========
Balance 12/31/94 ($1) $600 $2,150 $3,069 $5,818
Net Income (Loss) 770 770
Cash Dividends 0 0
Change in Unrealized
Gains/Losses 83 83
--------- --------- --------- --------- ---------
Balance 9/30/95 $82 $600 $2,150 $3,839 $6,671
========= ========= ========= ========= =========
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AMERICAN BANCORP, INC.
(PARENT COMPANY ONLY)
BALANCE SHEET
September 30, 1995 and 1994
(In Thousands)
ASSETS 1995 1994
- ------ ---- ----
Cash 3 4
Investment in Subsidiary 6,557 5,557
Dividend Receivable 0 0
Due From Subsidiary 472 131
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TOTAL ASSETS $7,032 $5,692
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LIABILITIES
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Federal Income Taxes Payable 361 0
Other Liabilities 0 0
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TOTAL LIABILITIES $361 $0
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SHAREHOLDERS' EQUITY
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Unrealized Gain (Loss) on Securities
Available for Sale 82 41
Common Stock, $5 par value; authorized
10,000,000 shares; issued 120,000 shares 600 600
Surplus 2,150 2,150
Retained Earnings 3,839 2,901
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TOTAL EQUITY 6,671 5,692
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TOTAL LIABILITIES & EQUITY $7,032 $5,692
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AMERICAN BANCORP, INC.
CONSOLIDATED BALANCE SHEETS
September 30, 1995 and 1994
(In Thousands)
1995 1994
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ASSETS
------
Cash and Due From Banks 4,284 4,510
Interest Bearing Deposits 694 3,266
Securities Being Held to Maturity 18,502 13,830
Securities Available for Sale 4,439 2,918
Federal Funds Sold 1,750 650
Loans - Net 26,032 27,274
Bank Premises and Equipment 1,271 1,415
Other Real Estate Owned 14 17
Accrued Interest Receivable 659 398
Deferred Tax Asset 28 32
Prepaid Expenses and Other Assets 421 302
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TOTAL ASSETS $58,094 $54,612
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LIABILITIES
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Deposits:
Non-Interest Bearing 16,225 13,712
Interest Bearing 34,648 35,060
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Total Deposits 50,873 48,772
Accrued Interest Payable 99 75
Deferred Income Tax Credits 0 0
Accrued Expenses and Other Liabilities 451 73
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TOTAL LIABILITIES $51,423 $48,920
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SHAREHOLDERS' EQUITY
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Unrealized Gain (Loss) on Securities
Available for Sale 82 41
Common Stock, $5 par value; authorized
10,000,000 shares; issued 120,000 shares 600 600
Surplus 2,150 2,150
Retained Earnings 3,839 2,901
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TOTAL SHAREHOLDERS' EQUITY $6,671 $5,692
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TOTAL LIABILITIES & EQUITY $58,094 $54,612
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See Notes to Financial Statements.
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AMERICAN BANCORP, INC.
(PARENT COMPANY ONLY)
INCOME STATEMENT
For the Nine Month Periods Ended September 30, 1995 and 1994
(In Thousands)
1995 1994
---- ----
INCOME FROM SUBSIDIARY
----------------------
Dividends $0 $0
OPERATING EXPENSES
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Other Expenses 4 0
Interest Expense 0 0
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TOTAL EXPENSES $5 $0
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Earnings (loss) before income tax benefit
and equity in undistributed earnings of
subsidiary ($5) $0
Income tax (benefit) 7 (131)
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Earnings (loss) before equity in undistributed
earnings of subsidiary ($12) $131
Equity in undistributed earnings of
subsidiary 782 586
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Net Income $770 $717
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AMERICAN BANCORP, INC.
CONSOLIDATED STATEMENTS OF INCOME
For the Nine Month Periods Ended September 30, 1995 and 1994
(In Thousands)
INCREASE
1995 1994 (DECREASE)
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INTEREST INCOME:
Interest and fees on loans $1,937 $1,705 232
Interest on investment securities:
Taxable 1,016 659 357
Tax-Exempt 19 3 16
Other Interest 206 202 4
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TOTAL INTEREST INCOME $3,178 $2,569 609
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INTEREST EXPENSE:
Interest on deposits $853 $693 160
Interest on short-term borrowings 0 0 0
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TOTAL INTEREST EXPENSE $853 $693 160
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NET INTEREST INCOME $2,325 $1,876 449
Provision for possible loan losses 0 12 (12)
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Net Interest Income after provision for
possible loan losses $2,325 $1,864 461
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NON-INTEREST INCOME:
Service charges on deposit accounts $409 $412 (3)
Investment securities gains (losses) 0 0 0
Other 69 70 (1)
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TOTAL NON-INTEREST INCOME $478 $482 (4)
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NON-INTEREST EXPENSE:
Salaries and Employee Benefits $838 $830 8
Net Occupancy Expense 424 411 13
Net cost of operation of O.R.E.O. (3) (2) (1)
Other 420 443 (23)
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TOTAL NON-INTEREST EXPENSE $1,679 $1,682 (3)
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INCOME BEFORE INCOME TAXES AND
EXTRAORDINARY ITEMS $1,124 $664 460
INCOME TAX (BENEFIT) 354 (53) 407
-------- -------- --------
INCOME BEFORE EXTRAORDINARY ITEMS $770 $717 53
EXTRAORDINARY ITEMS 0 0 0
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NET INCOME $770 $717 53
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Net income per share of common stock $6.42 $5.98 $0.44
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See Notes to Consolidated Financial Statements
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AMERICAN BANCORP, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Nine Month Periods Ended September 30, 1995 and 1994
1995 1994
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OPERATING ACTIVITIES
Net income $770 $717
Adjustments to reconcile net income to net cash
provided by operating activities:
Accretion of investment security discounts (16) (6)
Amortization of investment security premiums 8 3
Depreciation 131 129
Provision for loan losses 0 12
Wite down of other real estate 3 (1)
Gain/loss on sale of property and equipment 0 0
Decrease (increase) in accrued interest receivable (229) (120)
Increase (decrease) in accrued interest payable 19 13
Increase (decrease) in other accrued liabilities 438 0
Decrease(increase) in other asset (27) (32)
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Net cash provided by operating activities $1,097 $715
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INVESTING ACTIVITIES
Proceeds from sales & maturities of available for sale securities $642 0
Proceeds from sales & maturities of held to maturity securities 3,500 3,848
Purchases of available for sale securities (1,824) 0
Purchases of held to maturity securities (5,511) (7,554)
Net (increase) decrease in interest-bearing deposits with banks 1,780 1,485
Net (increase) decrease in loans 1,021 (853)
Net decrease (increase) in federal funds sold 4,300 1,525
Net decrease (increase) in other real estate 0 0
Proceeds from sale of assets 0 130
Purchases of property & equipment (27) (44)
Other (143) 53
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Net cash provided (used) by investing activities $3,738 ($1,410)
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FINANCING ACTIVITIES
Net increase (decrease) in non-interest bearing deposits $233 $1,148
Net increase (decrease) in int-bearing deposits (8,590) 947
Dividends paid 0 0
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Net cash provided (used) by financing activities ($8,357) $2,095
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Increase (decrease) in cash and cash equivalents ($3,522) $1,400
Cash and cash equivalents at beginning of year 7,806 3,110
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Cash and cash equivalents at end of period $4,284 $4,510
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Cash interest income received $2,949 $2,449
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Cash interest expense paid $834 $680
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Cash federal income taxes paid $7 $0
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NOTES TO FINANCIAL STATEMENTS
NONPERFORMING ASSETS:
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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 September 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 8
Loans & leases restructured and in
compliance with terms 18
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$28
Other Real Estate and repossessed assets
received in complete or partial
satisfaction of debt 14
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TOTAL NONPERFORMING ASSETS $42
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INVESTMENT SECURITIES:
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A comparison of the book value and estimated market value of investment
securities as of September 30, 1995 is as follows:
HELD-TO-MATURITY AVAILABLE-FOR-SALE
AMORT MARKET AMORT MARKET
COST VALUE COST VALUE
------------ ---------- ---------- ----------
U.S. Treasury $5,509 $5,547 $0 0
U.S. Agencies 12,993 12,977 3,311 3,409
State & Political Subdivisions 0 0 1,003 1030
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TOTAL $18,502 $18,524 $4,314 $4,439
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LOANS:
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Major classifications of loans are as follows as of September 30, 1995:
Commercial, Financial and Agricultural $5,812
Real Estate Construction 85
Real Estate Mortgage 15,857
Consumer Loans 4,154
Industrial Revenue Bonds 746
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TOTAL LOANS $26,654
Allowance for possible loan losses 622
Unearned income 0
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$26,032
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DEPOSITS
Deposits decreased $8,357,000 or 14.11% since December 31, 1994. The largest
percentage of this decrease is attributed to interest bearing deposits which
decreased $8,590,000 or 19.87% 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 $1,021,000 or 3.77% since December 31, 1994.
INVESTMENTS
Investments have increased $3,327,000 or 16.96% since December 31, 1994.
INSIDERS
Directors, Executive Officers and 10% shareholders and their related interest
had loans outstanding totaling $1,117,000 at September 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 53.35% on
September 30, 1995.
CAPITAL RESOURCES
Earnings of $770,000 for the first nine months of 1995 have increased from
$717,000 for the same period in 1994. The equity position of the corporation
has improved to 11.48% at September 30, 1995 as compared to 10.42% at
September 30, 1994.
RESULTS OF OPERATIONS
As previously stated earnings for the first nine months amounted to $770,000.
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 $622,000 or
2.33% of the outstanding loans at September 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.
10/26/95 /s/ SALVADOR L. DIESI
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DATE Salvador L. Diesi
Chairman of the Board / President
10/26/95 /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