1
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
AMENDMENT NO. 1 TO
FORM 10-Q
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.
- --------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
LOUISIANA 72-0951347
- ---------------------------------------- ---------------------------------
(State or other jurisdiction of (I R S Employer I. D. Number)
incorporation or organization)
328 EAST LANDRY STREET, OPELOUSAS, LA 70571-1579
- ---------------------------------------- ---------------------------------
(Address of principal executive office) (Zip Code)
(318) 948-3056
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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
2
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
------ ------
TOTAL ASSETS $6,616 $5,452
====== ======
LIABILITIES
- -----------
Federal Income Taxes Payable 226 0
Other Liabilities 0 0
------ ------
TOTAL LIABILITIES $226 $0
------ ------
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
------ ------
TOTAL EQUITY 6,390 5,452
------ ------
TOTAL LIABILITIES & EQUITY $6,616 $5,452
====== ======
3
AMERICAN BANCORP, INC.
CONSOLIDATED BALANCE SHEETS
June 30, 1995 and 1994
(In Thousands)
1995 1994
ASSETS ---- ----
------
Cash and Due From Banks 3,655 3,542
Interest Bearing Deposits 891 4,256
Securities 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
------- -------
TOTAL ASSETS $60,705 $53,735
======= =======
LIABILITIES
-----------
Deposits:
Non-Interest Bearing 16,146 13,173
Interest Bearing 37,797 34,958
------- -------
Total Deposits 53,943 48,131
Accrued Interest Payable 99 68
Deferred Income Tax Credits 0 0
Accrued Expenses and Other Liabilities 273 84
------- -------
TOTAL LIABILITIES $54,315 $48,283
------- -------
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
------- -------
TOTAL SHAREHOLDERS' EQUITY $6,390 $5,452
------- -------
TOTAL LIABILITIES & EQUITY $60,705 $53,735
======= =======
See Notes to Financial Statements.
4
AMERICAN BANCORP, INC.
(PARENT COMPANY ONLY)
INCOME STATEMENT
For the Six Month Periods Ended June 30, 1995 and 1994
(In Thousands)
1995 1994
---- ----
INCOME FROM SUBSIDIARY
----------------------
Dividends $0 $0
OPERATING EXPENSES
------------------
Other Expenses 4 0
Interest Expense 0 0
----- -----
TOTAL EXPENSES $4 $0
----- -----
Earnings (loss) before income tax benefit
and equity in undistributed earnings of
subsidiary ($4) $0
Income tax (benefit) 5 (71)
----- -----
Earnings (loss) before equity in undistributed
earnings of subsidiary ($9) $71
Equity in undistributed earnings of
subsidiary 506 381
----- -----
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
------ ------ -----
TOTAL INTEREST INCOME $2,095 $1,668 427
------ ------ -----
INTEREST EXPENSE:
Interest on deposits $556 $454 102
Interest on short-term borrowings 0 0 0
------ ------ -----
TOTAL INTEREST EXPENSE $556 $454 102
------ ------ -----
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
------ ------ -----
NON-INTEREST INCOME:
Service charges on deposit accounts $275 $271 4
Investment securities gains (losses) 0 0 0
Other 50 51 (1)
------ ------ -----
TOTAL NON-INTEREST INCOME $325 $322 3
------ ------ -----
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
------ ------ -----
TOTAL NON-INTEREST EXPENSE $1,145 $1,122 23
------ ------ -----
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
------ ------ -----
NET INCOME $497 $452 45
====== ====== =====
Net income per share of common stock $4.14 $3.77 $0.38
====== ====== =====
See Notes to Consolidated Financial Statements
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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
====== ===== ====== ====== ======
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
----------- -----------
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)
-------------- -----------
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
-------------- -----------
Net cash provided (used) by investing activities $358 ($1,472)
-------------- -----------
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
-------------- -----------
Net cash provided (used) by financing activities ($5,287) $1,456
-------------- -----------
Increase (decrease) in cash and cash equivalents ($4,151) $432
Cash and cash equivalents at beginning of year 7,806 3,110
-------------- -----------
Cash and cash equivalents at end of period $3,655 $3,542
============== ===========
Cash interest income received $2,042 $1,604
============== ===========
Cash interest expense paid $537 $448
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Cash federal income taxes paid $5 $0
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AMERICAN BANCORP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
JUNE 30, 1995
NOTE 1 - A BASIS OF PRESENTATION
The accompanying unaudited consolidated financial statements
have been prepared in accordance with generally accepted principles of
accounting for instructions to Form 10-Q and Article 10 of Regulations
S-X. Accordingly, they do not include all of the information and
footnotes required by generally accepted accounting principles for
complete financial statements. In the opinion of management, all
adjustments (consisting of normal recurring accruals) considered
necessary for a fair presentation have been included.
NOTE 2 - IMPAIRED LOANS
On January 1, 1995 the Company adopted Statement of Financial
Accounting Standards (SFAS) No. 114, "Accounting by Creditors for
Impairment of a Loan." The adoption of SFAS No. 114 did not have a
material impact on the financial condition or operating results of the
Company. Interest payments received on impaired loans are applied to
principal if there is doubt as to the collectibility of the principal;
otherwise, these receipts are recorded as interest income.
As it relates to in-substance foreclosures, SFAS No. 114 requires that
a creditor continue to follow loan classification on the balance sheet
unless the creditor receives physical possession of the collateral.
The Company had no in-substance foreclosures in foreclosed assets to
transfer to nonperforming loans and no related reserve for losses to
transfer to the reserve for possible loan losses.
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MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
Management's Discussion presents a review of the major factors and trends
affecting the performance of the Company and its bank subsidiary and should be
read in conjunction with the accompanying consolidated financial statements and
notes.
OVERVIEW
The Company reported net income of $ 497,000 for the first six months of
1995 compared to $ 452,000 for the same period of 1994. On a per share basis,
the income was $ 4.14 for the first half of 1995 compared to $ 3.77 for the
same period of 1994. The Company recorded a provision for possible loan losses
of $ 0 and $ 12,000 for the six months ended June 30, 1995 and 1994,
respectively. Net interest income increased 28% to $ 1,539,000 for the first
half of 1995 compared to $ 1,202,000 for the same period of 1994.
Total assets were $ 60,705,000 at June 30, 1995, an increase of
$6,970,000 from June 30, 1994. Of this $ 2,973,000 is attributed to an
increase in non-interest bearing demand deposit accounts. These deposits were
held in short-term federal funds sold and investment securities. Loans remain
fairly constant at $ 26,106,000 and $ 25,939,000 at June 30, 1995 and 1994,
respectively.
RESULTS OF OPERATIONS
NET INTEREST INCOME. Net interest income for the six months ended June
30, 1995 totaled $1,539,000; a $ 325,000 increase from the same period of 1994.
Factors contributing to this increase include an increase in the average rate
earned on taxable investment securities, federal funds sold, and the loan
portfolio. Also, contributing to the increase was an increase in the average
balance of taxable investment securities. These positive factors were
partially offset by an increase in the average balance and the average rate
paid on time certificates of deposit. The overall effect of volume and rate
changes on net interest income during the first half of 1995 was favorable.
PROVISION FOR POSSIBLE LOAN LOSSES. The Company recorded no provision
for possible loan losses for the first half of 1995 compared to $ 12,000 for
the same period of 1994. The absence of a provision in 1995 is the result of
continued improvements in asset quality and low net charge offs of loans. As a
percentage of outstanding loans, the allowance for possible loan losses was
2.32% and 2.29% at June 30, 1995 and 1994, respectively.
NONINTEREST INCOME. There has been immaterial variances in noninterest
income for the six month periods ended June 30, 1995 and 1994. The $ 3,000
increase in noninterest income for the first half of 1995 is the result of a $
4,000 increase in total service charges on deposit account as compared to the
same period of 1994.
There were no securities gains in the first six months of 1995 or of 1994.
NONINTEREST EXPENSE. For the first six months of 1995 noninterest
expense increased $ 23,000 or 2.0% compared to the same period in 1994.
Salaries and employee benefits , the largest component of noninterest expense,
increased by $ 4,000 or .72% for the first six months of 1995 as compared to
the same period in 1994.
Other expenses increased by $ 17,000 or 5.6% for the first six months of 1995
as compared to the same period in 1994. Professional fees increased by $
17,000 in the first six months of 1995 as compared to the same period of 1994.
The 1995 level of professional fees was higher due to bank consultant research
into bank operation efficiency. Deposit insurance premiums increased by $
8,000 or 15% in the first six months of 1995 as compared to the same period of
1994. This increase is the result in the increase in deposit accounts.
10
INCOME TAXES. The Company recorded provisions for income taxes of $
222,000 in the first half of 1995 as compared to a $ 50,000 income tax benefit
in the first half of 1994. In 1994, the Company had utilized all available net
operating losses and based on expected future earnings for 1995 the deferred
tax asset was recorded. This entry resulted in a net tax benefit.
FINANCIAL CONDITION
LOANS. Loans were $ 26,106,000 at June 30, 1995; up by $ 167,000 or . 6
% from June 30, 1994. Loan demand remains flat in the area.
TABLE I - COMPOSITION OF LOAN PORTFOLIO
June 30, 1995 June 30, 1994
------------ -------------
Commercial, Financial and Agricultural $5,794 $4,499
Real Estate Construction 29 152
Real Estate Mortgage 16,285 17,282
Consumer Loans 3,846 3,684
Industrial Revenue Bonds 773 934
------- -------
TOTAL LOANS $26,727 $26,551
Allowance for possible loan losses 621 609
Unearned income 0 3
------- -------
$26,106 $25,939
======= =======
SECURITIES HELD TO MATURITY. Securities held to maturity were $
18,998,000 at June 30, 1995; up by $ 5,654,000 or 42 % from June 30, 1994. The
increase is the result of the investment of deposit growth and low loan demand.
SECURITIES AVAILABLE FOR SALE. Securities available for sale were $
3,546,000 at June 30, 1995; up by $ 459,000 or 15 % from June 30, 1994. This
increase is the result of purchases of State & municipal securities.
Securities classified as available for sale are primarily mortgage backed
securities and municipal securities.
TABLE II - INVESTMENT SECURITIES
A comparison of the book value and estimated market value of investment
securities is as follows:
JUNE 30, 1995
----------------------------------------------------------
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
-------- ------- ------ ------
TOTAL $18,998 $18,989 $3,434 $3,546
======== ======= ====== ======
JUNE 30, 1994
---------------------------------------------------------
HELD-TO-MATURITY AVAILABLE-FOR-SALE
AMORT MARKET AMORT MARKET
COST VALUE COST VALUE
U.S. Treasury $4,801 $4,763 $0 0
U.S. Agencies 8,498 8,346 2,988 3,087
State & Political Subdivisions 45 52 0 0
-------- ------- ------ ------
TOTAL $13,344 $13,161 $2,988 $3,087
======== ======= ====== ======
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TABLE III - NONPERFORMING ASSETS
Non-performing assets include nonaccrual loans, loans which are contractually
90 days past due, restructured loans, and foreclosed assets. Restructured
loans are loans which, due to a deteriorated financial condition of the
borrower, have a below market yield.
June 30, 1995 June 30, 1994
Non-Performing Loans: ------------- -------------
Loans on Non-Accrual $2 $5
Loans past due 90 days or more as to
principal or interest, but not on
non-accrual 11 1
Loans & leases restructured and in
compliance with terms 23 99
----------- --------
$36 $105
Other Real Estate and repossessed assets
received in complete or partial
satisfaction of debt 14 17
----------- --------
TOTAL NONPERFORMING ASSETS $50 $122
=========== ========
TABLE IV - ANALYSIS OF ALLOWANCE FOR LOAN LOSSES
June 30, 1995 June 30, 1994
------------- -------------
Beginning balance $614 $606
Charge-offs:
Commercial, financial and agricultural - 13
Real estate - construction - -
Real estate - mortgage - -
Installment loans to individuals 2 1
----------- ---------
Total charge-offs 2 14
----------- ---------
Recoveries:
Commercial, financial and agricultural 3 4
Real estate - construction - -
Real estate - mortgage - -
Installment loans to individuals 6 1
----------- ---------
Total recoveries 9 5
----------- ---------
Net charge-offs (7) 9
----------- ---------
Provision charged against income - 12
----------- ---------
Balance at end of period $621 $609
=========== =========
Ratio of net charge-offs during the period to average loans
outstanding during the period (.03%) .03%
=========== =========
The present level of the allowance for loan losses is considered adequate to
absorb future potential loan losses. In making this determination, management
considered asset quality, the level of net loan charge-offs, as well as current
economic conditions and market trends.
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TABLE V - ALLOCATION OF THE ALLOWANCE FOR LOAN LOSSES
The allowance for possible loan losses has been allocated according to the
amount deemed to be reasonably necessary to provide for the possibility of
losses being incurred within the following categories of loans.
June 30, 1995 June 30, 1994
------------------------ -------------------------
% OF LOANS % OF LOANS
TO TOTAL TO TOTAL
AMOUNT LOANS AMOUNT LOANS
------------------------ -------------------------
Commercial, financial and
agricultural $137 22% $110 18%
Real estate - construction 6 1% 6 1%
Real estate - mortgage 373 60% 402 66%
Installment loans 105 17% 91 15%
-------- ------------
$621 100% $609 100%
======== ============
DEPOSITS. As of June 30, 1995 total deposits have increased by $
5,812,000 or 12 % from June 30, 1994. Noninterest bearing deposits increased
by $ 2,973,000 or 23 % from June 30, 1994 to June 30, 1995. Most of this
increase is reflected in increased balances of noninterest bearing commercial
accounts. Interest bearing deposits increased by $ 2,839,000 or 8 % from June
30, 1994 to June 30, 1994.
CAPITAL. Shareholders' equity totaled $ 6,390,000 at June 30, 1995,
compared to $ 5,452,000 at June 30, 1994. The increase is primarily the result
of net income over the most recent 12 months. Risk-based capital and leverage
ratios for the Company and the bank subsidiary exceed the ratios required for
the designation as a "well-capitalized" institution under regulatory
guidelines.
TABLE VI - CAPITAL RATIOS
June 30, 1994
---------------------------------------
AMERICAN BANK & TRUST COMPANY 1995 1994
------------- -------------
Risk-based capital:
Teir 1 risk-based capital ratio 21.02% 19.45%
Total risk-based capital ratio 22.27% 20.70%
Leverage ratio 10.52% 9.87%
INSIDERS. Directors, executive officers and 10 % shareholders and their
related interest had loans outstanding totaling $ 1,065,000 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 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 to sign on behalf of th registrant.
AMERICAN BANCORP, INC.
-------------------------------------
(Registrant)
November 28, 1995 /s/ Salvador L. Diesi
- ------------------ -------------------------------------
DATE Salvador L. Diesi
Chairman of the Board / President
November 28, 1995 /s/ Ronald J. Lashute
- ------------------ -------------------------------------
DATE Ronald J. Lashute
Secretary/Treasurer
of the Board