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 March 31, 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 April 15, 1995
2
AMERICAN BANCORP, INC.
(PARENT COMPANY ONLY)
BALANCE SHEET
March 31, 1995 and 1994
(In Thousands)
ASSETS 1995 1994
- ------ ---- ----
Cash 4 4
Investment in Subsidiary 5,991 5,215
Dividend Receivable 0 0
Due From Subsidiary 216 0
------ ------
TOTAL ASSETS $6,211 $5,219
====== ======
LIABILITIES
- -----------
Federal Income Taxes Payable 97 0
Other Liabilities 0 0
------ ------
TOTAL LIABILITIES $97 $0
------ ------
SHAREHOLDERS' EQUITY
- --------------------
Unrealized Gain (Loss) on Securities
Available for Sale 52 98
Common Stock, $5 par value; authorized
10,000,000 shares; issued 120,000 shares 600 600
Surplus 2,150 2,150
Retained Earnings 3,312 2,371
------ ------
TOTAL EQUITY 6,114 5,219
------ ------
TOTAL LIABILITIES & EQUITY $6,211 $5,219
====== ======
3
AMERICAN BANCORP, INC.
CONSOLIDATED BALANCE SHEETS
March 31, 1995 and 1994
(In Thousands)
1995 1994
ASSETS ------- -------
------
Cash and Due From Banks 5,712 3,784
Interest Bearing Deposits 1,485 4,751
Securities Held to Maturity 16,487 11,845
Securities Available for Sale 3,427 3,418
Federal Funds Sold 2,900 3,425
Loans - Net 25,941 25,753
Bank Premises and Equipment 1,332 1,485
Other Real Estate Owned 17 47
Accrued Interest Receivable 487 331
Deferred Tax Asset 35 0
Prepaid Expenses and Other Assets 313 340
------- -------
TOTAL ASSETS $58,136 $55,179
======= =======
LIABILITIES
-----------
Deposits:
Non-Interest Bearing 14,848 14,084
Interest Bearing 36,935 35,715
------- -------
Total Deposits 51,783 49,799
Accrued Interest Payable 90 63
Deferred Income Tax Credits 0 50
Accrued Expenses and Other Liabilities 149 48
------- -------
TOTAL LIABILITIES $52,022 $49,960
------- -------
SHAREHOLDERS' EQUITY
--------------------
Unrealized Gain (Loss) on Securities
Available for Sale 52 98
Common Stock, $5 par value; authorized
10,000,000 shares; issued 120,000 shares 600 600
Surplus 2,150 2,150
Retained Earnings 3,312 2,371
------- -------
TOTAL SHAREHOLDERS' EQUITY $6,114 $5,219
------- -------
TOTAL LIABILITIES & EQUITY $58,136 $55,179
======= =======
See Notes to Financial Statements.
4
AMERICAN BANCORP, INC.
(PARENT COMPANY ONLY)
INCOME STATEMENT
For the Three Month Periods Ended March 31, 1995 and 1994
(In Thousands)
1995 1994
---- ----
INCOME FROM SUBSIDIARY
----------------------
Dividends $0 $0
OPERATING EXPENSES
------------------
Other Expenses 0 0
Interest Expense 0 0
----- -----
TOTAL EXPENSES $0 $0
----- -----
Earnings (loss) before income tax benefit
and equity in undistributed earnings of
subsidiary $0 $0
Income tax (benefit) 3 0
----- -----
Earnings (loss) before equity in undistributed
earnings of subsidiary ($3) $0
Equity in undistributed earnings of
subsidiary 246 187
----- -----
Net Income $243 $187
===== =====
5
AMERICAN BANCORP, INC.
CONSOLIDATED STATEMENTS OF INCOME
For the Three Month Periods Ended March 31, 1995 and 1994
(In Thousands)
INCREASE
1995 1994 (DECREASE)
INTEREST INCOME: ------- ------- ----------
Interest and fees on loans $627 $542 85
Interest on investment securities:
Taxable 315 200 115
Tax-Exempt 2 1 1
Other Interest 75 72 3
------- ------- -------
TOTAL INTEREST INCOME $1,019 $815 204
------- ------- -------
INTEREST EXPENSE:
Interest on deposits $267 $222 45
Interest on short-term borrowings 0 0 0
------- ------- -------
TOTAL INTEREST EXPENSE $267 $222 45
------- ------- -------
NET INTEREST INCOME $752 $593 159
Provision for possible loan losses 0 9 (9)
------- ------- -------
Net Interest Income after provision for
possible loan losses $752 $584 168
------- ------- -------
NON-INTEREST INCOME:
Service charges on deposit accounts $139 $134 5
Investment securities gains (losses) 0 0 0
Other 31 31 0
------- ------- -------
TOTAL NON-INTEREST INCOME $170 $165 5
------- ------- -------
NON-INTEREST EXPENSE:
Salaries and Employee Benefits $281 $272 9
Net Occupancy Expense 137 135 2
Net cost of operation of O.R.E.O. (1) (3) 2
Other 168 158 10
------- ------- -------
TOTAL NON-INTEREST EXPENSE $585 $562 23
------- ------- -------
INCOME BEFORE INCOME TAXES AND
EXTRAORDINARY ITEMS $337 $187 150
INCOME TAX (BENEFIT) 94 0 94
------- ------- -------
INCOME BEFORE EXTRAORDINARY ITEMS $243 $187 56
EXTRAORDINARY ITEMS 0 0 0
------- ------- -------
NET INCOME $243 $187 56
======= ======= =======
Net income per share of common stock $2.03 $1.56 $0.47
======= ======= =======
See Notes to Consolidated Financial Statements
6
AMERICAN BANCORP, INC.
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
For the Three Month Periods Ended March 31, 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) 187 187
Cash Dividends 0 0
Change in Unrealized
Gains/Losses 98 98
------ ------ ------ ------ ------
Balance 3/31/94 $98 $600 $2,150 $2,371 $5,219
====== ====== ====== ====== ======
Balance 12/31/94 ($1) $600 $2,150 $3,069 $5,818
Net Income (Loss) 243 243
Cash Dividends 0 0
Change in Unrealized
Gains/Losses 53 53
------ ------ ------ ------ ------
Balance 3/31/95 $52 $600 $2,150 $3,312 $6,114
====== ====== ====== ====== ======
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AMERICAN BANCORP, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Three Month Periods Ended March 31, 1995 and 1994
1995 1994
-------- -------
OPERATING ACTIVITIES
Net income $243 $187
Adjustments to reconcile net income to net cash
provided by operating activities:
Accretion of investment security discounts (5) (2)
Amortization of investment security premiums 2 1
Depreciation 44 42
Provision for loan losses 0 9
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 (57) (53)
Increase (decrease) in accrued interest payable 10 1
Increase (decrease) in other accrued liabilities 137 (27)
Decrease(increase) in other asset (26) 0
----------------- ------------------
Net cash provided by operating activities $348 $159
----------------- ------------------
INVESTING ACTIVITIES
Proceeds from sales & maturities of available for sale securities $81 0
Proceeds from sales & maturities of held to maturity securities 1,000 420
Purchases of available for sale securities (300) 0
Purchases of held to maturity securities (1,000) (2,495)
Net (increase) decrease in interest-bearing deposits with banks 989 0
Net (increase) decrease in loans 1,112 671
Net decrease (increase) in federal funds sold 3,150 (1,250)
Net decrease (increase) in other real estate 0 0
Proceeds from sale of assets 0 100
Purchases of property & equipment 0 (27)
Other (27) (27)
----------------- ------------------
Net cash provided (used) by investing activities $5,005 ($2,608)
----------------- ------------------
FINANCING ACTIVITIES
Net increase (decrease) in non-interest bearing deposits ($1,144) $1,521
Net increase (decrease) in int-bearing deposits (6,303) 1,602
Dividends paid 0 0
----------------- ------------------
Net cash provided (used) by financing activities ($7,447) $3,123
----------------- ------------------
Increase (decrease) in cash and cash equivalents ($2,094) $674
Cash and cash equivalents at beginning of year 7,806 3,110
----------------- ------------------
Cash and cash equivalents at end of period $5,712 $3,784
================= ==================
Cash interest income received $962 $762
================= ==================
Cash interest expense paid $257 $221
================= ==================
Cash federal income taxes paid $3 $0
================= ==================
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AMERICAN BANCORP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
March 31, 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 $ 243,000 for the first three months
of 1995 compared to $ 187,000 for the same period of 1994. On a per share
basis, the income was $ 2.03 for the first quarter of 1995 compared to $ 1.56
for the same period of 1994. The Company recorded a provision for possible
loan losses of $ 0 and $ 9,000 for the three months ended March 31, 1995 and
1994, respectively. Net interest income increased 29% to $ 752,000 for the
first quarter of 1995 compared to $ 584,000 for the same period of 1994.
Total assets were $ 58,136,000 at March 31, 1995, an increase of $
2,957,000 from March 31, 1994. Of this $ 1,220,000 is attributed to an
increase in interest bearing demand deposit accounts. These deposits were held
in short-term federal funds sold and investment securities. Loans remain
fairly constant at $ 25,941,000 and $ 25,753,000 at March 31, 1995 and 1994,
respectively.
RESULTS OF OPERATIONS
NET INTEREST INCOME. Net interest income for the three months ended
March 31, 1995 totaled $ 752,000, a $ 159,000 increase from the same period in
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 the average balances and rate paid on interest bearing
deposits increasing. The overall effect of volume and rate changes on net
interest income during the first quarter of 1995 was favorable.
PROVISION FOR POSSIBLE LOAN LOSSES. The Company recorded no provision
for possible loan losses for the first quarter of 1995 compared to $ 9,000 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 outstnding loans, the allowance for possible loan losses was
2.34% and 2.33% at March 31, 1995 and 1994, respectively.
NONINTEREST INCOME. There has been immaterial variances in noninterest
income for the three month periods ended March 31, 1995 and 1994. The $ 5,000
increase in noninterest income for the first quarter of 1995 is the result of a
$ 5,000 increase in total service charges on deposit account as compared to the
same period of 1994.
There were no securities gains in the first three months of 1995 or of 1994.
NONINTEREST EXPENSE. For the first three months of 1995 noninterest
expense increased $ 23,000 or 4.0% compared to the same period in 1994.
Salaries and employee benefits , the largest component of noninterest expense,
increased by $ 9,000 or 3% for the first three months of 1995 as compared to
the same period in 1994.
Other expenses increased by $ 10,000 or 6.3 % for the first three months of
1995 as compared to the same period in 1994. Professional fees increased by $
8,000 in the first three 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 $
4,000 or 15 % in the first three months of 1995 as compared to the same period
of 1994. This increase is the result in the increase in deposit accounts.
INCOME TAXES. The Company recorded provisions for income taxes of $
94,000 in the first quarter of 1995 as compared to no provisions recorded in
the first half of 1994. In 1994, the Company had net operating losses
carryforwards available to offset net taxable income. Therefore, no provision
for income taxes was necessary.
10
FINANCIAL CONDITION
LOANS. Loans were $ 25,941,000 at March 31, 1995; up by $ 188,000 or . 7
% from March 31, 1994. Loan demand remains flat in the area.
TABLE I - COMPOSITION OF LOAN PORTFOLIO
March 31, 1995 March 31, 1994
------------------- ---------------
Commercial, Financial and Agricultural $5,604 $4,090
Real Estate Construction 232 283
Real Estate Mortgage 16,163 17,488
Consumer Loans 3,752 3,543
Industrial Revenue Bonds 812 970
---------- ----------
TOTAL LOANS $26,563 $26,374
Allowance for possible loan losses 621 616
Unearned income 1 5
---------- ----------
$25,941 $25,753
========== ==========
SECURITIES HELD TO MATURITY. Securities held to maturity were $
16,487,000 at March 31, 1995; up by $ 4,642,000 or 39 % from March 31, 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 $
3,427,000 at March 31, 1995; up by $ 9,000 or . 3 % from March 31, 1994.
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:
March 31, 1995
--------------------------------------------------------------------
HELD-TO-MATURITY AVAILABLE-FOR-SALE
AMORT MARKET AMORT MARKET
COST VALUE COST VALUE
U.S. Treasury $4,998 $4,989 $0 0
U.S. Agencies 11,489 11,219 3,049 3,118
State & Political Subdivisions 0 0 300 309
------- ------- ------ ------
TOTAL $16,487 $16,208 $3,349 $3,427
======= ======= ====== ======
March 31, 1994
--------------------------------------------------------------------
HELD-TO-MATURITY AVAILABLE-FOR-SALE
AMORT MARKET AMORT MARKET
COST VALUE COST VALUE
U.S. Treasury $4,299 $4,287 $0 0
U.S. Agencies 7,501 7,463 3,270 3,418
State & Political Subdivisions 45 52 0 0
------- ------- ------ ------
TOTAL $11,845 $11,802 $3,270 $3,418
======= ======= ====== ======
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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.
March 31, 1995 March 31, 1994
-------------- --------------
Non-Performing Loans:
Loans on Non-Accrual $5 $6
Loans past due 90 days or more as to
principal or interest, but not on
non-accrual 1 1
Loans & leases restructured and in
compliance with terms 24 109
--------- --------
$30 $116
Other Real Estate and repossessed assets
received in complete or partial
satisfaction of debt 17 47
--------- --------
TOTAL NONPERFORMING ASSETS $47 $163
========= ========
TABLE IV - ANALYSIS OF ALLOWANCE FOR LOAN LOSSES
March 31, 1995 March 31, 1994
-------------- --------------
Beginning balance $614 $606
Charge-offs:
Commercial, financial and agricultural - -
Real estate - construction - -
Real estate - mortgage - -
Installment loans to individuals - -
--------- ---------
Total charge-offs 0 0
--------- ---------
Recoveries:
Commercial, financial and agricultural 3 1
Real estate - construction - -
Real estate - mortgage - -
Installment loans to individuals 4 -
--------- ---------
Total recoveries 7 1
--------- ---------
Net charge-offs (7) (1)
--------- ---------
Provision charged against income - 9
--------- ---------
Balance at end of period $621 $616
========= =========
Ratio of net charge-offs during the period to average
loans outstanding during the period (.03%) (.004%)
========= =========
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.
12
TABLE V - ALLOCATION OF THE ALLOWANCE FOR LOAN LOSSES
The allowance for possible loan losses has been allocated according to the
amount deemed to be reasonably necessary to provide for the possibility of
losses being incurred within the following categories of loans.
March 31, 1995 March 31, 1994
------------------------------- --------------------------------
% OF LOANS % OF LOANS
TO TOTAL TO TOTAL
AMOUNT LOANS AMOUNT LOANS
------------------------------- --------------------------------
Commercial, financial and
agricultural $130 21% $99 16%
Real estate - construction 6 1% 6 1%
Real estate - mortgage 379 61% 407 66%
Installment loans 87 14% 80 13%
Industrial revenue bonds 19 3% 25 4%
---------- ----------
$621 100% $616 100%
========== ==========
DEPOSITS. As of March 31, 1995 total deposits have increased by $
1,984,000 or 4 % from March 31, 1994. Noninterest bearing deposits increased
by $ 764,000 or 5 % from March 31, 1994 to March 31, 1995. Most of this
increase is reflected in increased balances of noninterest bearing commercial
accounts. Interest bearing deposits increased by $ 1,220,000 or 3 % from March
31, 1994 to March 31, 1994. Of this increase $ 909,000 was an increase in
certificates of deposits.
CAPITAL. Shareholders' equity totaled $ 6,114,000 at March 31, 1995,
compared to $ 5,219,000 at March 31, 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
March 31,
-----------------------------
AMERICAN BANK & TRUST COMPANY 1995 1994
------ ------
Risk-based capital:
Teir 1 risk-based capital ratio 20.83% 18.57%
Total risk-based capital ratio 22.08% 19.82%
Leverage ratio 10.14% 9.55%
INSIDERS. Directors, executive officers and 10 % shareholders and their
related interest had loans outstanding totaling $ 1,074,000 at March 31, 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.
13
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)
11-27-95 /s/ SAVADOR L. DIESI
- --------------- -----------------------
DATE Salvador L. Diesi
Chairman of the Board / President
11-27-95 /s/ RONALD J. LASHUTE
- --------------- -----------------------
DATE Ronald J. Lashute
Secretary/Treasurer
of the Board