1
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 March 31, 1996
Commission File Number 0-11928
AMERICAN BANCORP, INC.
- --------------------------------------------------------------------------------
(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 April 15, 1996
2
AMERICAN BANCORP, INC.
(PARENT COMPANY ONLY)
BALANCE SHEET
March 31, 1996 and 1995
(In Thousands)
ASSETS 1996 1995
- -------- ------ ------
Cash 3 4
Investment in Subsidiary 7,058 5,991
Dividend Receivable 0 0
Due From Subsidiary 134 216
------ ------
TOTAL ASSETS $7,195 $6,211
------ ------
LIABILITIES
- ----------------
Federal Income Taxes Payable 129 97
Other Liabilities 0 0
------ ------
TOTAL LIABILITIES $ 129 $ 97
------ ------
SHAREHOLDERS' EQUITY
- ------------------------
Unrealized Gain (Loss) on Securities
Available for Sale 74 52
Common Stock, $5 par value; authorized
10,000,000 shares; issued 120,000 shares 600 600
Surplus 2,150 2,150
Retained Earnings 4,242 3,312
------ ------
TOTAL EQUITY 7,066 6,114
------ ------
TOTAL LIABILITIES & EQUITY $7,195 $6,211
------ ------
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AMERICAN BANCORP, INC.
CONSOLIDATED BALANCE SHEETS
March 31, 1996 and 1995
(In Thousands)
ASSETS 1996 1995
------ ------- -------
Cash and Due From Banks 4,063 5,712
Interest Bearing Deposits 1,091 1,485
Securities Held to Maturity 16,500 16,487
Securities Available for Sale 5,935 3,427
Federal Funds Sold 2,550 2,900
Loans - Net 26,046 25,941
Bank Premises and Equipment 1,409 1,332
Other Real Estate Owned 14 17
Accrued Interest Receivable 618 487
Deferred Tax Asset 0 35
Prepaid Expenses and Other Assets 439 313
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TOTAL ASSETS $58,665 $58,136
======= =======
LIABILITIES
--------------
Deposits:
Non-Interest Bearing 14,682 14,848
Interest Bearing 36,589 36,935
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Total Deposits 51,271 51,783
Accrued Interest Payable 104 90
Deferred Income Tax Credits 16 0
Accrued Expenses and Other Liabilities 208 149
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TOTAL LIABILITIES $51,599 $52,022
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SHAREHOLDERS' EQUITY
------------------------
Unrealized Gain (Loss) on Securities
Available for Sale 74 52
Common Stock, $5 par value; authorized
10,000,000 shares; issued 120,000 shares 600 600
Surplus 2,150 2,150
Retained Earnings 4,242 3,312
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TOTAL SHAREHOLDERS' EQUITY $ 7,066 $ 6,114
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TOTAL LIABILITIES & EQUITY $58,665 $58,136
======= =======
See Notes to Financial Statements.
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AMERICAN BANCORP, INC.
(PARENT COMPANY ONLY)
INCOME STATEMENT
For the Three Month Periods Ended March 31, 1996 and 1995
(In Thousands)
1996 1995
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INCOME FROM SUBSIDIARY
--------------------------
Dividends $ 0 $ 0
OPERATING EXPENSES
--------------------------
Other Expenses 1 0
Interest Expense 0 0
----- -----
TOTAL EXPENSES $ 1 $ 0
----- -----
Earnings (loss) before income tax benefit
and equity in undistributed earnings of
subsidiary ($ 1) $ 0
Income tax (benefit) 0 3
----- -----
Earnings (loss) before equity in undistributed
earnings of subsidiary ($ 1) ($ 3)
Equity in undistributed earnings of
subsidiary 313 246
----- -----
Net Income $ 312 $ 243
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AMERICAN BANCORP, INC.
CONSOLIDATED STATEMENTS OF INCOME
For the Three Month Periods Ended March 31, 1996 and 1995
(In Thousands)
INCREASE
1996 1995 (DECREASE)
INTEREST INCOME: ------- ------- --------
Interest and fees on loans $ 632 $ 627 5
Interest on investment securities:
Taxable 310 315 (5)
Tax-Exempt 24 2 22
Other Interest 71 75 (4)
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TOTAL INTEREST INCOME $ 1,037 $ 1,019 18
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INTEREST EXPENSE:
Interest on deposits $ 315 $ 267 48
Interest on short-term borrowings 0 0 0
------- ------- -------
TOTAL INTEREST EXPENSE $ 315 $ 267 48
------- ------- -------
NET INTEREST INCOME $ 722 $ 752 (30)
Provision for possible loan losses 0 0 0
------- ------- -------
Net Interest Income after provision for
possible loan losses $ 722 $ 752 (30)
------- ------- -------
NON-INTEREST INCOME:
Service charges on deposit accounts $ 132 $ 139 (7)
Investment securities gains (losses) 0 0 0
Other 34 31 3
------- ------- -------
TOTAL NON-INTEREST INCOME $ 166 $ 170 (4)
------- ------- -------
NON-INTEREST EXPENSE:
Salaries and Employee Benefits $ 261 $ 281 (20)
Net Occupancy Expense 145 137 8
Net cost of operation of O.R.E.O (1) (1) 0
Other 153 168 (15)
------- ------- -------
TOTAL NON-INTEREST EXPENSE $ 558 $ 585 (27)
------- ------- -------
INCOME BEFORE INCOME TAXES AND
EXTRAORDINARY ITEMS $ 330 $ 337 (7)
INCOME TAX (BENEFIT) 18 94 (76)
------- ------- -------
INCOME BEFORE EXTRAORDINARY ITEMS $ 312 $ 243 69
EXTRAORDINARY ITEMS 0 0 0
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NET INCOME $ 312 $ 243 69
------- ------- -------
Net income per share of common stock $ 2.60 $ 2.03 $ 0.58
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See Notes to Consolidated Financial Statements
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AMERICAN BANCORP, INC.
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
For the Three Month Periods Ended March 31, 1996 & 1995
(In Thousands)
NET
UNREALIZED
GAINS(LOSS) RETAINED
SECURITIES STOCK SURPLUS EARNINGS TOTAL
---------- ------ ------- -------- -------
Balance 12/31/94 ($ 1) $ 600 $2,150 $3,069 $5,818
Net Income (Loss) 243 243
Cash Dividends -- --
Change in Unrealized
Gains/Losses 53 -- 53
------ ------ ------ ------ ------
Balance 3/31/95 $ 52 $ 600 $2,150 $3,312 $6,114
------ ------ ------ ------ ------
Balance 12/31/95 $ 105 $ 600 $2,150 $3,930 $6,785
Net Income (Loss) 312 312
Cash Dividends -- --
Change in Unrealized
Gains/Losses (31) -- (31)
------ ------ ------ ------ ------
Balance 3/31/96 $ 74 $ 600 $2,150 $4,242 $7,066
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AMERICAN BANCORP, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Three Month Periods Ended March 31, 1996 and 1995
1996 1995
-------- --------
OPERATING ACTIVITIES
Net income $ 312 $ 243
Adjustments to reconcile net income to net cash
provided by operating activities:
Accretion of investment security discounts (4) (5)
Amortization of investment security premiums 5 2
Depreciation 48 44
Provision for loan losses 0 0
Gain on sale of other real estate 0 0
Gain/loss on sale of assets 0 0
Decrease (increase) in accrued interest receivable (67) (57)
Increase (decrease) in accrued interest payable 1 10
Increase (decrease) in other liabilities (303) 137
Decrease(increase) in other asset 17 (26)
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Net cash provided by operating activities $ 9 $ 348
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INVESTING ACTIVITIES
Proceeds from sales & maturities of available for
sale securities $ 184 81
Proceeds from sales & maturities of held to maturity
securities 2,500 1,000
Purchases of available for sale securities (1,026) (300)
Purchases of held to maturity securities (2,495) (1,000)
(Increase) decrease in interest-bearing deposits
with banks (397) 989
(Increase) decrease in loans 344 1,112
Decrease (increase) in federal funds sold 3,800 3,150
Net decrease (increase) in other real estate 0 0
Proceeds from sale of assets 0 0
Purchases of property & equipment (22) 0
Other 16 (27)
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Net cash provided (used) by investing activities $ 2,904 $ 5,005
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FINANCING ACTIVITIES
Increase (decrease) in non-interest bearing deposits ($2,247) ($1,144)
Increase (decrease) in int-bearing deposits (2,137) (6,303)
Dividends paid 0 0
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Net cash provided (used) by financing activities ($4,384) ($7,447)
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Increase (decrease) in cash and cash equivalents ($1,471) ($2,094)
Cash and cash equivalents at beginning of year 5,534 7,806
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Cash and cash equivalents at end of period $ 4,063 $ 5,712
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Cash interest income received $ 971 $ 962
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Cash interest expense paid $ 314 $ 257
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AMERICAN BANCORP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
March 31, 1996
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 $ 312,000 for the first three months
of 1996 compared to $ 243,000 for the same period of 1995. On a per share
basis, the income was $ 2.60 for the first quarter of 1996 compared to $ 2.03
for the same period of 1995. The Company recorded a provision for possible
loan losses of $ 0 for the three months ended March 31, 1995 and 1994,
respectively. Net interest income decreased 4% to $ 722,000 for the first
quarter of 1996 compared to $ 752,000 for the same period of 1995.
Total assets were $ 58,665,000 at March 31, 1996, a slight increase of $
529,000 from March 31, 1995. Loans remain fairly constant at $ 26,046,000 and
$ 25,941,000 at March 31, 1996 and 1995, respectively. Deposits also remained
constant at $ 51,271,000 and $ 51,783,000 at March 31, 1996 and 1995,
respectively.
RESULTS OF OPERATIONS
NET INTEREST INCOME. Net interest income for the three months ended
March 31, 1996 totaled $ 722,000, a $ 30,000 decrease from the same period in
1995. Factors contributing to this decrease include an increase in the average
rate paid on time deposits. The increase in interest expense was partially
offset by an increase in the average rate earned on the loan portfolio and an
increase in the average balance of tax-exempt securities. The overall effect
of volume and rate changes on net interest income during the first quarter of
1996 was unfavorable.
PROVISION FOR POSSIBLE LOAN LOSSES. The Company recorded no provision
for possible loan losses for both the first quarter of 1996 and 1995. The
absence of a provision 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 2.33% and 2.33% at March 31, 1996 and
1995, respectively.
NONINTEREST INCOME. There has been immaterial variances in noninterest
income for the three month periods ended March 31, 1996 and 1995. The $ 4,000
decrease in noninterest income for the first quarter of 1996 is the result of a
$ 7,000 decrease in total service charges on deposit account as compared to the
same period of 1995.
There were no securities gains in the first three months of 1996 or of 1995.
NONINTEREST EXPENSE. For the first three months of 1996 noninterest
expense decreased $ 27,000 or 4.6% compared to the same period in 1995.
Salaries and employee benefits , the largest component of noninterest expense,
decreased by $ 20,000 or 7% for the first three months of 1996 as compared to
the same period in 1995. Employee medical insurance expense decreased by $
30,000 for the first quarter of 1996 as compared to the same period of 1995.
This decrease is reflective of a decrease in medical claim experience for the
quarter ended March 31, 1996.
Other expenses decreased by $ 15,000 or 9 % for the first three months of 1996
as compared to the same period in 1995. The most significant variance was a
decrease in FDIC assessment expense of $ 38,000 due to a reduction in the FDIC
assessment rates. The other categories in non-interest expense experienced
normal variations between the first quarter of 1996 and 1995.
INCOME TAXES. The Company recorded provisions for income taxes of $
18,000 in the first quarter of 1996 as compared to $ 94,000 in the first
quarter of 1995. Upon filing the 1995 federal tax return the company was able
to utilize tax credit carried forward. These tax credits were included in
deferred tax assets aa of December 31, 1995, however, a deferred tax valuation
reserve was also recorded due to uncertainty of realizable value.
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FINANCIAL CONDITION
LOANS. Loans were $ 26,046,000 at March 31, 1996; up by $ 105,000 or . 4
% from March 31, 1995. Loan demand remains flat in the area.
TABLE I - COMPOSITION OF LOAN PORTFOLIO
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March 31, 1996 March 31, 1995
-------------- --------------
Commercial, Financial and Agricultural $ 5,932 $ 5,604
Real Estate Construction 120 232
Real Estate Mortgage 15,957 16,163
Consumer Loans 4,017 3,752
Industrial Revenue Bonds 642 812
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TOTAL LOANS $26,668 $26,563
Allowance for possible loan losses 622 621
Unearned income 0 1
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$26,046 $25,941
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SECURITIES HELD TO MATURITY. Securities held to maturity were $
16,500,000 at March 31, 1996; up by $ 13,000 from March 31, 1995.
SECURITIES AVAILABLE FOR SALE. Securities available for sale were $
5,935,000 at March 31, 1996; up by $ 2,508,000 or 7.3 % from March 31, 1995.
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, 1996
---------------------------------------
HELD-TO-MATURITY AVAILABLE-FOR-SALE
AMORT MARKET AMORT MARKET
COST VALUE COST VALUE
U.S. Treasury $ 6,001 $ 6,037 $ 0 0
U.S. Agencies 10,499 10,530 2,063 2,157
State & Political Subdivisions 0 0 3,759 3,778
------- ------- ------- -------
TOTAL $16,500 $16,567 $ 5,822 $ 5,935
======= ======= ======= =======
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
======= ======= ======= =======
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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. 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 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.
March 31, 1996 March 31, 1995
-------------- --------------
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 6 1
Loans & leases restructured and in
compliance with terms 16 24
--- ---
$24 $30
Other Real Estate and repossessed assets
received in complete or partial
satisfaction of debt 14 17
--- ---
TOTAL NONPERFORMING ASSETS $38 $47
=== ===
TABLE IV - ANALYSIS OF ALLOWANCE FOR LOAN LOSSES
- ------------------------------------------------
March 31, 1996 March 31, 1995
-------------- --------------
Beginning balance $624 $614
Charge-offs:
Commercial, financial and agricultural -- --
Real estate - construction -- --
Real estate - mortgage -- --
Installment loans to individuals 6 --
----- ---------
Total charge-offs 6 0
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Recoveries:
Commercial, financial and agricultural 3 3
Real estate - construction -- --
Real estate - mortgage -- --
Installment loans to individuals 1 4
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Total recoveries 4 7
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Net charge-offs 2 (7)
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Provision charged against income -- --
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Balance at end of period $ 622 $ 621
===== =====
Ratio of net charge-offs during the period to average loans
outstanding during the period .008% (.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.
March 31, 1996 March 31, 1995
------------------- -------------------
% OF LOANS % OF LOANS
TO TOTAL TO TOTAL
AMOUNT LOANS AMOUNT LOANS
------------------- -------------------
Commercial, financial and
agricultural $137 22% $130 21%
Real estate - construction 6 1% 6 1%
Real estate - mortgage 373 60% 379 61%
Installment loans 93 15% 87 14%
Industrial revenue bonds 13 2% 19 3%
---- ---- ---- ----
$622 100% $621 100%
==== ==== ==== ====
DEPOSITS. As of March 31, 1996 total deposits have decreased by $
512,000 or 1 % from March 31, 1995. Noninterest bearing deposits decreased by
$ 166,000 or 1 % from March 31, 1995 to March 31, 1996. Interest bearing
deposits decreased by $ 346,000 or 1 % from March 31, 1995 to March 31, 1996.
CAPITAL. Shareholders' equity totaled $ 7,066,000 at March 31, 1996,
compared to $ 6,114,000 at March 31, 1995. 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 1996 1995
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Risk-based capital:
Teir 1 risk-based capital ratio 23.77% 20.83%
Total risk-based capital ratio 25.02% 22.08%
Leverage ratio 11.78% 10.14%
INSIDERS. Directors, executive officers and 10 % shareholders and their
related interest had loans outstanding totaling $ 1,287,000 at March 31, 1996.
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)
5/8/1996 /s/ Salvador L. Diesi
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DATE Salvador L. Diesi
Chairman of the Board / President
5/8/1996 /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