UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
[ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 1999
or
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from ____________________ to
___________________
Commission File Number: 33-96358
BOURBON BANCSHARES, INC.
(Exact name of registrant as specified in its charter)
Kentucky 61-0993464
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
P.O. Box 157, Paris, Kentucky 40362-0157
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code:
(606)987-1795
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 period 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 _____
Number of shares of Common Stock outstanding as of May 10,
1999: 1,399,588.
BOURBON BANCSHARES, INC.
Table of Contents
Part I - Financial Information
Item 1. Financial Statements
Consolidated Balance Sheets 3
Consolidated Statement of Income and Comprehensive Income
Three Months Ending March 31, 1999 & 1998 4
Consolidated Statements of Cash Flows
Three Months Ending March 31, 1999 & 1998 5
Notes to Consolidated Financial Statements 6
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 7
Item 3. Quantitative and Qualitative Disclosures About
Market Risk 13
Part II - Other Information 16
Signatures 16
Exhibits
27 Financial Data Schedule 17
Item 1 - Financial Statements
CONSOLIDATED BALANCE SHEET (unaudited)
(thousands) 3/31/99 12/31/98
Assets
Cash & Due From Banks $ 10,353 $ 10,756
Investment Securities:
Securities Held to Maturity 16,935 16,934
Securities Available for Sale 56,020 55,420
Federal Home Loan Bank Stock 3,173 3,119
Loans $214,192 $212,843
Reserve for Loan Losses 2,885 2,735
Net Loans $211,307 $210,108
Premises and Equipment 6,818 6,794
Other Assets 5,248 5,574
Total Assets $309,854 $308,705
Liabilities & Stockholders' Equity
Deposits
Demand $ 38,767 $ 40,336
Savings & Interest Checking 97,816 96,579
Certificates of Deposit 121,923 121,825
Total Deposits $258,506 $258,740
Repurchase Agreements 4,338 6,713
Federal Home Loan Bank Advances 11,880 6,954
Other Borrowed Funds 2,417 4,535
Other Liabilities 2,819 2,391
Total Liabilities $279,960 $279,333
Stockholders' Equity
Common Stock $ 6,249 $ 6,474
Retained Earnings 23,642 22,832
Accumulated Other Comprehensive Income 3 66
Total Stockholders' Equity $ 29,894 $ 29,372
Total Liabilities & Stockholders' Equity $309,854 $308,705
BOURBON BANCSHARES, INC.
CONSOLIDATED STATEMENT OF INCOME AND COMPREHENSIVE INCOME (unaudited)
(thousands, except per share amounts) Three Months Ending
3/31/99 3/31/98
NTEREST INCOME:
Loans, including fees $ 4,480 $ 4,120
Investment Securities 969 1,162
Other 123 125
Total Interest Income $ 5,572 $ 5,407
INTEREST EXPENSE:
Deposits $ 2,289 $ 2,436
Other 232 242
Total Interest Expense $ 2,521 $ 2,678
Net Interest Income $ 3,051 $ 2,729
Loan Loss Provision 175 163
Net Interest Income After Provision $ 2,876 $ 2,566
OTHER INCOME:
Service Charges $ 616 $ 568
Securities Gains (Losses) 7 8
Other 236 126
Total Other Income $ 859 $ 702
OTHER EXPENSES:
Salaries and Benefits $ 1,195 $ 1,123
Occupancy Expenses 293 270
Other 683 637
Total Other Expenses $ 2,171 $ 2,030
Income Before Taxes $ 1,564 $ 1,238
Income Taxes 445 322
Net Income $ 1,119 $ 916
Other Comprehensive Income, net of tax
Change in Unrealized Gains on Securities (36) (63)
Comprehensive Income $ 1,056 $ 880
Earnings per share $ 0.80 $ 0.66
Earnings per share - assuming dilution $ 0.79 $ 0.64
BOURBON BANCSHARES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)
(thousands) Three Months Ending
3/31/99 3/31/98
Cash Flows From Operating Activities
Net Income $ 1,119 $ 916
Adjustments to reconcile net income to
net cash provided by operating activities:
Depreciation 150 142
Amortization 137 112
Investment securities (accretion) amortization, net 2 (12)
Provision for loan losses 175 163
Deferred Income Taxes (89) (40)
Investment securities losses (gains), net (7) (8)
Originations of loans held for sale (8,722) (9,399)
Proceeds from sale of loans 6,306 12,855
Capitalization of Mortgage Servicing Rights (61) (108)
Losses (gains) on sale of loans (67) (21)
Changes in:
Interest receivable 438 327
Other assets (1) 1
Interest payable 124 (31)
Income taxes payable 476 364
Other liabilities (219) (660)
Net cash provided by operating activities $ (239) $ 4,601
Cash Flows From Investing Activities
Purchases of securities available for sale $(15,629) $(11,043)
Proceeds from sales of securities available for sale 4,847 1,538
Proceeds from principal payments, maturities and
calls of securities available for sale 10,037 14,520
Net change in loans 1,090 (1,614)
Purchases of bank premises and equipment (174) (132)
Net cash provided by investing activities $ 171 $ 3,269
Cash Flows From Financing Activities:
Net change in deposits $ (234) $ (51)
Net change in securities sold under agreements to
repurchase and federal funds purchased (2,375) (2,643)
Advances from Federal Home Loan Bank 5,000 -
Payments on Federal Home Loan Bank advances (74) (69)
Net change in other borrowed funds (2,118) (1,234)
Repurchase of common stock (236) -
Proceeds from issuance of common stock 11 86
Dividends paid (309) (280)
Net cash provided by financing activities $ (335) $ (4,191)
Net increase (decrease) in cash and cash equivalents $ (403) $ 3,679
Cash and cash equivalents at beginning of period 10,756 12,275
Cash and cash equivalents at end of period $ 10,353 $ 15,954
BOURBON BANCSHARES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. In Management's opinion, the financial information,
which is unaudited, reflects all adjustments, (consisting
solely of normal recurring adjustments) necessary for a fair
presentation of the financial information as of and for the
three month periods ended March 31, 1999 and March 31, 1998
in conformity with generally accepted accounting principles.
These financial statements should be read in conjunction
with Bourbon Bancshares, Inc. (Company) Annual Report on
Form 10-K.
2. The Financial Accounting Standards Board has issued
Statement of Financial Accounting Standards No. 130,
"Reporting Comprehensive Income". The requirements are
disclosure related and its implementation will have no
impact on the Company's financial condition or results of
operations. Prior period financial statements have been
restated to meet this reporting format.
3. Recently, the Financial Accounting Standards Board
issued Statement 128, "Earnings Per Share", under which
basic and diluted earnings per share are computed. Prior
amounts have been restated to be comparable. Basic earnings
per share is based on net income divided by the weighted
average number of shares outstanding during the period.
Diluted earnings per share shows the dilutive effect of
additional common shares issuable under stock options.
4. Dividends per share paid for the quarter ended March
31, 1999 were $0.22 compared to $0.20 on March 31, 1998.
Item 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
Summary
Bourbon Bancshares, Inc. recorded net income of $1.1
million, or $0.80 per share and $0.79 per share assuming
dilution for the first three months ended March 31, 1999
compared to $916 thousand, or $0.66 per share and $0.64 per
share assuming dilution for March 31, 1998. The first three
months reflects an increase in earnings of 22%.
Return on average assets was 1.45% for the first three
months ended March 31, 1999 compared to 1.28% for the same
time period in 1998. Return on average equity was 15.2% and
13.5% for the three months ended March 31, 1999 and 1998,
respectively. Both the return on assets and the return on
equity were up 13% for the first three months of 1999.
Net Interest Income
Net interest income was $3.0 million for the three months
ended March 31, 1999 compared to $2.7 million in 1998,
resulting in an increase of $322 thousand or 11.8%. Loan
volume continues to improve. Year to date average loans are
up nearly $27 million, or nearly 15% from 1998 to 1999
resulting in an improvement in loan interest income of $360
thousand for the first three months. Average deposits also
increased from 1998 to 1999, up $20 million, or 8%. This
increased volume within the recent declining rate
environment resulted in lower interest expense of $147
thousand for the first three months.
Non-Interest Income
Non-interest income increased for the three-month period
ended March 31 from $702 thousand in 1998 to $859 thousand
in 1999. For the year, an increase of $48 thousand in
service charges from 1998 to 1999 is mainly attributable to
an improvement in overdraft charges of $21 thousand. Trust
income accounts for $59 thousand and gains on loans sold
accounts for $46 thousand of the $110 thousand increase in
other income for the first three months. The increase in
trust fees is mainly due to non-recurring estate fees and
trust termination fees.
Non-Interest Expense
The explanations for the increase of $141 thousand in non-
interest expenses from $2.0 million for the three months
ended March 31, 1998 to $2.1 million for the same period in
1999 follows. Salaries and benefits increased $72 thousand
for the first three months of 1999 compared to 1998, an
increase of 6.4%. In 1999, the Company implemented a
compensation plan with additional incentive compensation.
Incentives for the first three months were $30 thousand
greater in 1999 compared to 1998 due to this change. Other
compensation and benefits increased 4%.
Occupancy expense increased $23 thousand to $293 thousand
for the first three months of 1999 compared to 1998.
Depreciation was up $8 thousand for the year. Equipment
maintenance was $8 thousand higher for the first three
months of 1999.
Other expenses for the first three months of 1999 compared
to 1998 increased $46 thousand, from $637 thousand to $683
thousand. Other taxes are $10 thousand greater in 1999
compared to 1998. The overall growth of the Company has
caused this item to increase. With the selling of mortgage
loans, the amortization of mortgage servicing rights
increased $10 thousand from 1998 to 1999.
Income Taxes
The tax equivalent rate for the three months ended March 31
was 28% for 1999 and 26% for 1998. These rates being less
than the statutory rate is a result of the tax-free
securities and loans held by the Company.
Liquidity and Funding
The cash flow statements provide a useful analysis of
liquidity. This report reveals a decrease of cash and cash
equivalents for the first three months of 1999 of $403
thousand and an increase of $3.7 million for the same period
in 1998. In 1999, proceeds from the sale of loans were
nearly $6 million compared to $13 million in 1998. Four
million dollars of 1998 sales were of a nonrecurring nature.
The decline in rates allowed the Company to sell some lower
coupon loans.
During 1998, proceeds from security transactions have
exceeded purchases by $5 million. In 1999, security
purchases exceeded proceeds from security transactions by $1
million. Of these changes, principal payments on securities
have amounted to over $2 million in 1999 and over $4 million
for the same period in 1998.
During 1999, $5 million has been borrowed from the Federal
Home Loan Bank (FHLB). In 1998, no advances from the FHLB
were needed for this three-month period.
Management believes there is sufficient liquidity to meet
all reasonable borrower, depositor and creditor needs in the
present economic environment.
Non-Performing Assets
As of March 31, 1999, the Company's non-performing assets
totaled $1.1 million or 0.5% of loans compared to $529
thousand or 0.3% of loans in 1997. (See table below) Real
estate loans composed 74% and 64% of the non-performing
loans as of March 31, 1999 and 1998, respectively. Lost
interest income on the non-accrual loans for both 1999 and
1998 is immaterial.
Nonperforming Assets
March 31
(in thousands)
1999 1998
Non-accrual Loans 315 196
Accruing Loans which are
Contractually past due
90 days or more 631 177
Restructured Loans 142 156
Total Nonperforming and
Restructured Loans 1,088 529
Other Real Estate 70 -
Total Nonperforming and Restructured
Loans and Other Real Estate 1,158 529
Nonperforming and Restructured
Loans as a Percentage of Net Loans 0.51% 0.29%
Nonperforming and Restructured
Loans and Other Real Estate as a
Percentage of Total Assets 0.37% 0.18%
Provision and Reserve for Possible Loan Losses
The 1999 three-month provision for loan losses of $175
thousand is higher than the 1998 number of $163 thousand.
Loan growth has required management to increase the
provision in order to maintain a reserve ratio that is
adequate and indicative of the quality of loans currently in
the portfolio. As depicted in the table below, the loan
loss reserve to total loans was 1.35% on March 31, 1999 and
1.33% on March 31, 1998. Net charge-offs for the periods
mentioned above have been relatively insignificant.
Management feels the current loan loss reserve is sufficient
to meet future loan problems.
Loan Losses
Three Months Ended March 31
(in thousands)
1999 1998
Balance at Beginning of Period 2,735 2,322
Amounts Charged-off:
Commercial - 2
Agricultural 2 -
Consumer 41 53
Total Charged-off Loans 43 55
Recoveries on Amounts
Previously Charged-off:
Commercial 2 1
Consumer 16 6
Total Recoveries 18 7
Net Charge-offs 25 48
Provision for Loan Losses 175 163
Balance at End of Period 2,885 2,437
Total Loans, Net of Unearned
Income
Average 211,003 183,614
At March 31 214,192 183,273
As a Percentage of Average Loans:
Net Charge-offs 0.01% 0.03%
Provision for Loan Losses 0.08% 0.09%
Allowance as a Percentage of
Period-end Net Loans v 1.35% 1.33%
Allowance as a Multiple of
Net Charge-offs 115.4 50.8
Year 2000
Management has assessed the operational and financial
implications of its Year 2000 needs and developed a plan to
address its data processing systems and their ability to
handle the change. Management has determined that if a
business interruption as a result of the Year 2000 issue
occurred, such an interruption could be material. The
primary effort required to prevent a potential business
interruption is the installation of the most current
software release from the Company's third party provider and
replacement of certain system hardware. The third party
software provider has warranted that Year 2000 remediation
and testing efforts to become compliant have been
successfully completed. Testing of mission critical systems
was completed at the end of the first quarter. Non-mission
critical systems will continue to be evaluated and, if
necessary, will be upgraded or replaced. Current cost
estimates for this project are under $150 thousand, with the
majority of this expenditure being for equipment and
software to be capitalized over 3-5 years. In addition,
over $400 thousand was spent on a new mainframe computer
system to enhance our overall computer technology. Year
2000 expenses are subject to change and could vary from
current estimates if the final requirements for Year 2000
readiness exceed management's expectations.
The Company must also rely to some extent on the Year 2000
readiness of other third party entities such as public
utilities and governmental units. These and other like
entities provide important ongoing services to the Company.
Management is therefore developing and implementing
contingency plans that are scheduled to be in place by the
end of the second quarter, 1999.
The Company's credit customers are also subject to potential
losses as a result of Year 2000 exposure in their own
computer systems as well as the computer systems of their
suppliers and customers. The Company is working with those
customers that the Company believes may be significantly
affected to assess each customer's Year 2000 exposure and
the extent to which the customer has addressed the problem.
Any exposure which, in the opinion of management, is not
adequately addressed will be taken into account in assessing
the loss potential, if any, associated with that credit
relationship.
Forward-Looking Statements
This discussion contains forward-looking statements under
the Private Securities Litigation Reform Act of 1995 that
involve risks and uncertainties. Although the Company
believes that the assumptions underlying the forward-looking
statements contained herein are reasonable, any of the
assumptions could be inaccurate, and therefore, there can be
no assurance that the forward-looking statements included
herein will prove to be accurate. Factors that could cause
actual results to differ from the results discussed in the
forward-looking statements include, but are not limited to:
economic conditions (both generally and more specifically in
the markets in which the Company and its bank operate);
competition for the Company's customers from other providers
of financial and mortgage services; government legislation
and regulation (which changes from time to time and over
which the Company has no control); changes in interest rates
(both generally and more specifically mortgage interest
rates); material unforeseen changes in the liquidity,
results of operations, or financial condition of the
Company's customers; material unforeseen complications
related to addressing the Year 2000 problem experienced by
the Company, its suppliers, customers and governmental
agencies; and other risks detailed in the Company's filings
with the Securities and Exchange Commission, all of which
are difficult to predict and many of which are beyond the
control of the Company. The Company undertakes no
obligation to republish revised forward-looking statements
to reflect events or circumstances after the date hereof or
to reflect the occurrence of unanticipated events.
Item 3 - QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Asset/Liability management control is designed to ensure
safety and soundness, maintain liquidity and regulatory
capital standards, and achieve acceptable net interest
income. Management considers interest rate risk to be the
most significant market risk. The Company's exposure to
market risk is reviewed on a regular basis by the
Asset/Liability Committee. Interest rate risk is the
potential of economic losses due to future interest rate
changes. These economic losses can be reflected as a loss
of future net interest income and/or a loss of current fair
market values. The objective is to measure the effect on
net interest income and to adjust the balance sheet to
minimize the inherent risk while at the same time maximize
income. Management realizes certain risks are inherent and
that the goal is to identify and minimize the risks. Tools
used by management include the standard GAP model and an
interest rate shock simulation model. The Bank has no
market risk sensitive instruments held for trading purposes.
The following table depicts the change in net interest
income resulting from 100 and 300 basis point changes in
rates. The projections are based on balance sheet growth
assumptions and repricing opportunities for new, maturing
and adjustable rate amounts. In addition, the projected
percentage changes from level rates are outlined below
within the Board of Directors specified limits. As of March
31, 1999 the projected percentage changes are within the
Board limits and the Company's interest rate risk is also
with Board limits. The projected net interest income report
summarizing the Company's interest rate sensitivity as of
March 31, 1999 is as follows:
(in thousands)
PROJECTED NET INTEREST INCOME
Level
Rate Change: - 300 - 100 Rates + 100 + 300
Year One (4/1/99 - 3/31/2000)
Interest Income 20,388 22,402 23,419 24,436 26,470
Interest Expense 7,341 9,327 10,320 11,313 13,298
Net Interest Income 13,047 13,075 13,099 13,123 13,172
PROJECTED DOLLAR INCREASE (DECREASE) FROM "LEVEL RATES"
Year One (4/1/99 - 3/31/2000)
Interest Income (3,031) (1,017) N/A 1,017 3,051
Interest Expense (2,979) (993) N/A 993 2,979
Net Interest Income (52) (24) N/A 24 72
PROJECTED PERCENTAGE INCREASE (DECREASE) FROM "LEVEL RATES"
Year One (4/1/99 - 3/31/2000)
Interest Income -12.9% -4.3% N/A 4.3% 13.0%
Interest Expense -28.9% -9.6% N/A 9.6% 28.9%
Net Interest Income -0.4% -0.2% N/A 0.2% 0.6%
Limitation on % Change >-10.0% >-4.0% N/A >-4.0% >-10.0%
These numbers are comparable to 1998. In 1999, year one
reflected a decline in net interest income of 0.4% with a
300 basis point decline compared to the 2.2% decline in
1998. The 300 basis point increase in rates reflected a
0.6% increase in net interest income in 1999 compared to
2.3% in 1998. Percentage changes in 1999 are less than 1998
reflecting less vulnerability to drastic shifts in interest
rates.
Management measures the Company's interest rate risk by
computing estimated changes in net interest income in the
event of a range of assumed changes in market interest
rates. The Company's exposure to interest rates is reviewed
on a monthly basis by senior management and quarterly with
the Board of Directors. Exposure to interest rate risk is
measured with the use of interest rate sensitivity analysis
to determine the change in net interest income in the event
of hypothetical changes in interest rates, while interest
rate sensitivity gap analysis is used to determine the
repricing characteristics of the Company's assets and
liabilities. If estimated changes to net interest income
are not within the limits established by the Board, the
Board may direct management to adjust the Company's asset
and liability mix to bring interest rate risk within Board
approved limits.
In addition, the Company uses interest rate sensitivity gap
analysis to monitor the relationship between the maturity
and repricing of its interest-earning assets and interest-
bearing liabilities, while maintaining an acceptable
interest rate spread. Interest rate sensitivity gap is
defined as the difference between the amount of interest-
earning assets maturing or repricing within a specific time
period and the amount of interest-bearing liabilities
maturing or repricing within that time period. A gap is
considered positive when the amount of interest-rate-
sensitive assets exceeds the amount of interest-sensitive-
liabilities, and is considered negative when the amount of
interest-rate-sensitive liabilities exceeds the amount of
interest-rate-sensitive assets. Generally, during a period
of rising interest rates, a negative gap would adversely
affect net interest income, while a positive gap would
result in an increase in net interest income. Conversely,
during a period of falling interest rates, a negative gap
would result in an increase in net interest income, while a
positive gap would negatively affect net interest income.
The Company's goal is to maintain a reasonable balance
between exposure to interest rate fluctuations and earnings.
The interest rate sensitivity analysis as of March 31, 1999
shown below depicts amounts based on the earliest period in
which they can normally be expected to reprice. The chart
reveals that assets and liabilities are fairly well matched
for the early periods specified below. The decay rates used
for Demand deposits, NOW's, Savings and Money Market Savings
are 5%, 30%, 20% and 30%, respectively.
(in thousands)
Total 1 Year 2 Years 3 Years 4 Years 5 Years >5 Years
ASSETS
Cash & Due From Banks 13,151 - - - - - 13,151
Fed Funds & Int-Earning Due From Banks 152 152 - - - - -
Variable Rate Investments 22,854 22,854 - - - - -
Fixed Rate Investments 53,274 23,966 7,861 4,065 4,446 2,081 10,855
Variable Rate Loans 64,574 58,756 2,114 1,023 1,219 1,331 131
Fixed Rate Loans 149,618 39,273 19,696 28,574 30,227 27,464 4,384
Other Assets 6,231 - - - - - 6,231
Total Assets/Repricing Assets 309,854 145,001 29,671 33,662 35,892 30,876 34,752
Repricing Assets - Accumulated 145,001 174,672 208,334 244,226 275,102 309,854
% of Current Balance 46.8% 9.6% 10.9% 11.6% 10.0% 11.2%
% of Current Balance - Accumulated 46.8 56.4 67.2 78.8 88.8 100.0
LIABILITIES
Demand Deposit Accounts 38,767 1,938 1,841 1,749 1,662 1,579 29,997
NOW Accounts 62,953 18,886 13,220 9,254 6,478 4,534 10,581
Savings Accounts 12,815 2,510 2,061 1,649 1,319 1,055 4,221
Money Market Savings 10,322 3,097 2,168 1,517 1,062 743 1,735
Subtotal Deposit Accounts 124,857 26,431 19,290 14,169 10,521 7,911 46,534
Other Variable Deposits 6,634 6,634 - - - - -
Fixed Rate Deposits 127,014 110,824 12,013 1,582 754 618 1,223
Variable Rate Other Liabilities 6,005 6,005 - - - - -
Fixed Rate Other Liabilities 12,631 303 1,218 237 251 10,520 102
Other Liabilities 2,819 - - - - - 2,819
Total Capital 29,894 - - - - - 29,894
Total Liabilities/Repricing Liabilities 309,854 150,197 32,521 15,988 11,526 19,049 80,572
Repricing Liabilities - Accumulated 150,197 182,718 198,707 210,233 229,282 309,854
% of Current Balance 48.5% 10.5% 5.2% 3.7% 6.1% 26.0%
% of Current Balance - Accumulated 48.5 59.0 64.1 67.8 74.0 100.0
SUMMARY
Total Repricing Assets 145,001 29,671 33,662 35,892 30,876 34,752
Total Repricing Liabilities 150,197 32,521 15,988 11,526 19,049 80,572
Total Repricing Gap (by Bucket) (5,196) (2,850) 17,674 24,366 11,827 (45,820)
Total Repricing Assets - Cumulative 288,885 145,001 174,672 208,334 244,226 275,102 309,854
Total Repricing Liabilities - Cumulative 277,617 150,197 182,718 198,707 210,233 229,282 309,854
Repricing Gap - Cumulative 11,268 (5,196) (8,046) 9,627 33,993 45,820 -
Gap/Total Assets (by Bucket) -1.68% -0.92% 5.70% 7.86% 3.82% -14.79%
Cumulative Gap/Total Assets -1.68 -2.60 3.11 10.97 14.79 0.00
Part II - Other Information
Item 1. Legal Proceedings
The Company is not a party to any material legal proceedings.
Item 2. Changes in Securities
None
Item 3. Defaults upon Senior Securities
None
Item 4. Submission of Matters to a Vote of Security Holders
None
Item 5. Other Information
None
Item 6. Exhibits and Reports on Form 8-K
1. Exhibits as required by Item 601 of Regulation S-B.
27 Financial Data Schedule
2. No reports on Form 8-K have been filed during the quarter
for which this report is filed.
SIGNATURES
In accordance with the requirements of the Exchange Act, the registrant
caused the report to be signed on its behald by the undersigned,
thereunto duly authorized.
Bourbon Bancshares, Inc.
Date _______________________ ___/s/Buckner Woodford__________________
Buckner Woodford, President and C.E.O.
Date _______________________ ___/s/Gregory J. Dawson_________________
Gregory J. Dawson, Chief Financial Officer