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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
/X/ QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
OF 1934 FOR THE QUARTERLY PERIOD ENDED MARCH 31, 1998
/ / TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
FOR THE TRANSITION PERIOD FROM __________ TO __________
COMMISSION FILE NUMBER 0-28894
ACCESS ANYTIME BANCORP, INC.
(Name of small business issuer in its charter)
DELAWARE 85-0444597
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
801 PILE STREET, CLOVIS, NEW MEXICO 88101
(Address of principal executive offices) (Zip Code)
Issuer's telephone number, including area code: (505) 762-4417
SECURITIES REGISTERED UNDER SECTION 12(b) OF THE EXCHANGE ACT: NONE
SECURITIES REGISTERED UNDER SECTION 12(g) OF THE EXCHANGE ACT:
COMMON STOCK $.01 PAR VALUE
---------------------------
(Title of class)
Check whether the issuer (1) filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act during the past 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 / /
1,217,336 Shares of Capital Stock $.01 par value
Outstanding as of April 28, 1998
Transitional Small Business Disclosure Format (check one): Yes / / No /X/
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TABLE OF CONTENTS
Page
----
PART I - FINANCIAL INFORMATION
Item 1 - Financial Statements
Unaudited Consolidated Statements of Financial Condition. . . . 3
Unaudited Consolidated Statements of Operations . . . . . . . . 4
Unaudited Consolidated Statement of Stockholders' Equity. . . . 5
Unaudited Consolidated Statements of Cash Flows . . . . . . . . 6 - 7
Notes to Consolidated Financial Statements (Unaudited). . . . . 8 - 12
Item 2 - Management's Discussion and Analysis or Plan of Operation . 13 - 16
PART II - OTHER INFORMATION
Item 1 - Legal Proceedings . . . . . . . . . . . . . . . . . . 17
Item 6 - Exhibits and Reports on Form 8-K . . . . . . . . . . . 17
SIGNATURES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
2
PART I - FINANCIAL INFORMATION
ITEM 1 - FINANCIAL STATEMENTS
The following unaudited consolidated financial statements include all
adjustments, which in the opinion of management, are necessary in order to
make such financial statements not misleading.
ACCESS ANYTIME BANCORP, INC. AND SUBSIDIARY
UNAUDITED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
March 31, December 31,
ASSETS 1998 1997
- ------ ------------ -------------
Cash and cash equivalents $ 6,563,903 $ 6,814,126
Certificates of deposit 1,830,000 1,530,000
Securities available-for-sale (amortized cost of $14,281,575 and $15,036,150) 14,277,333 15,032,085
Securities held-to-maturity (aggregate fair value of $15,551,622 and $18,803,081) 15,630,072 18,947,399
Loans held-for-sale (aggregate fair value of $1,074,416 and $304,150) 1,053,004 297,873
Loans receivable 68,103,826 58,172,494
Interest receivable 584,042 585,730
Real estate owned 109,550 76,091
FHLB stock 1,691,934 1,667,434
Premises and equipment 2,168,636 2,054,247
Servicing rights 353,779 331,296
Organizational cost, net of accumulated amortization of $58,524 and $48,055 146,570 157,039
Deferred tax asset 1,375,201 1,402,032
Other assets 159,233 145,372
------------ ------------
Total assets $114,047,083 $107,213,218
------------ ------------
------------ ------------
LIABILITIES AND STOCKHOLDERS' EQUITY
- ------------------------------------
Liabilities:
Deposits $ 98,350,869 $ 97,412,005
Federal Home Loan Bank advances 5,750,000 --
Accrued interest and other liabilities 236,808 358,154
Advanced payments by borrowers for taxes and insurance 486,568 297,837
------------ ------------
Total liabilities 104,824,245 98,067,996
------------ ------------
Commitments and contingencies
Stockholders' equity:
Preferred stock, $.01 par value; 4,000,000 shares authorized; none issued -- --
Common stock, $.01 par value; 6,000,000 shares authorized; 1,217,336
shares issued and outstanding in 1998 and 1997 12,173 12,173
Capital in excess of par value 9,480,905 9,477,405
Accumulated deficit (267,439) (341,673)
Net unrealized depreciation on available-for-sale securities, net of tax of
$1,441 in 1998 and $1,382 in 1997 (2,801) (2,683)
------------ ------------
Total stockholders' equity 9,222,838 9,145,222
------------ ------------
Total liabilities and stockholders' equity $114,047,083 $107,213,218
------------ ------------
------------ ------------
The accompanying notes are an integral part of these consolidated financial
statements.
3
ACCESS ANYTIME BANCORP, INC. AND SUBSIDIARY
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
Three Month Periods Ended
March 31,
-------------------------
1998 1997
---------- ----------
Interest income:
Loans receivable $1,327,542 $1,012,369
U.S. government agency securities 26,066 23,810
Mortgage-backed securities 457,711 677,742
Other interest income 70,921 65,300
---------- ----------
Total interest income 1,882,240 1,779,221
---------- ----------
Interest expense:
Deposits 1,015,037 1,035,941
FHLB advances 26,493 11,329
---------- ----------
Total interest expense 1,041,530 1,047,270
---------- ----------
Net interest income before provision for loan losses 840,710 731,951
Provision for loan losses charged 35,170 22,784
---------- ----------
Net interest income after provision for loan losses 805,540 709,167
---------- ----------
Noninterest income:
Loan servicing and other fees 73,129 83,890
Net realized gains on sales of available-for-sale securities -- 17,637
Net realized gains on sales of loans 53,268 37,455
Real estate operations, net -- 89
Other income 94,479 96,039
---------- ----------
Total other income 220,876 235,110
---------- ----------
Noninterest expenses:
Salaries and employee benefits 481,558 404,581
Occupancy expense 113,070 103,738
Deposit insurance premium 30,378 59,194
Advertising 9,262 10,689
Real estate operations, net 3,128 --
Professional fees 41,485 27,317
Other expense 246,410 228,051
---------- ----------
Total other expenses 925,291 833,570
---------- ----------
Income before income taxes 101,125 110,707
Income tax expense 26,891 --
---------- ----------
Net income $ 74,234 $ 110,707
---------- ----------
---------- ----------
Earnings per common share $ .06 $ 0.12
---------- ----------
---------- ----------
Earnings per common share-assuming dilution $ .06 $ 0.12
---------- ----------
---------- ----------
The accompanying notes are an integral part of these consolidated financial
statements.
4
ACCESS ANYTIME BANCORP, INC. AND SUBSIDIARY
UNAUDITED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY
Net Unrealized
Common Stock Depreciation
-------------------- Capital In On Available-
Number Of Excess Of Accumulated For-Sale
Shares Amount Par Value Deficit Securities, Net Total
--------- ------ --------- ----------- --------------- -----
Balance at December 31, 1997 1,217,336 $ 12,173 $ 9,477,405 $ (341,673) $ (2,683) $ 9,145,222
Net income -- -- -- 74,234 -- 74,234
Common stock rights issued in lieu
of directors cash compensation -- -- 3,500 -- -- 3,500
Net changes in unrealized
depreciation on available-
for-sale securities, net -- -- -- -- (118) (118)
--------- -------- ----------- ---------- -------- -----------
Balance at March 31, 1998 1,217,336 $ 12,173 $ 9,480,905 $ (267,439) $ (2,801) $ 9,222,838
--------- -------- ----------- ---------- -------- -----------
--------- -------- ----------- ---------- -------- -----------
The accompanying notes are an integral part of
these consolidated financial statements.
5
ACCESS ANYTIME BANCORP, INC. AND SUBSIDIARY
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
Three Month Periods Ended
March 31,
---------------------------
1998 1997
------------ -----------
Cash flows from operating activities:
Net income $ 74,234 $ 110,707
Adjustments to reconcile net income to cash
provided (used) by operating activities:
Depreciation 47,580 34,770
Deferred income taxes 26,891 --
Provision for loan losses charged 35,170 22,784
Amortization of premiums on
investment securities 44,640 138,199
Amortization of organizational costs 10,469 9,539
Gain on sale of available-for-sale securities -- (17,637)
Gain on sale of loans held-for-sale (53,268) (37,455)
Proceeds from sales of loans
held-for-sale 3,315,593 2,264,423
Originations of loans held-for-sale (4,017,456) (2,094,171)
Common stock rights issued in
lieu of directors compensation 3,500 --
Loss on foreclosed real estate 3,000 --
Loss on disposition of assets 1,100 --
Net (increase) decrease in accrued interest
receivable and other assets 113,363 208,270
Decrease in accrued expense and other
liabilities (119,658) (81,545)
------------ -----------
Net cash provided by (used in)
operating activities (741,568) 557,884
------------ -----------
Cash flows from investing activities:
Proceeds from maturities and
principal repayments of
available-for-sale securities 730,195 894,308
Proceeds from maturities and
principal repayments of held-
to-maturity securities 3,297,126 2,072,364
Proceeds from sales of
available-for-sale-securities -- 4,770,378
Net increase in certificates of deposit (300,000) (1,199,786)
Net increase in loans (9,966,502) (2,160,682)
Proceeds from sales of foreclosed real estate 16,000 --
Purchases of premises and equipment (163,069) (8,609)
------------ -----------
Net cash provided by (used in) investing
activities (6,386,250) 4,367,973
------------ -----------
Cash flows from financing activities:
Net increase in deposits 938,864 396,016
Net change in other borrowed funds
Net increase in advance payments by 5,750,000 (3,000,000)
borrowers for taxes and insurance 188,731 164,468
Proceeds from issuance of common stock -- 1,992,859
------------ -----------
Net cash provided by (used in)
financing activities 6,877,595 (446,657)
------------ -----------
Increase (decrease) in cash and cash
equivalents (250,223) 4,479,200
Cash and cash equivalents at January 1 6,814,126 2,199,227
------------ -----------
Cash and cash equivalents at March 31 $ 6,563,903 $ 6,678,427
------------ -----------
------------ -----------
(Continued)
6
ACCESS ANYTIME BANCORP, INC. AND SUBSIDIARY
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
(CONTINUED)
Three Month Periods
Ended March 31,
-------------------
1998 1997
---- ----
Supplemental disclosures of cash
flow information:
Cash paid during the period for:
Interest $ 1,034,166 $ 1,052,125
Income taxes -- --
Supplemental disclosure of non-cashing investing
and financing activities
Loans to facilitate the sale of real
estate owned 19,000 --
The accompanying notes are an integral part of
these consolidated financial statements.
7
ACCESS ANYTIME BANCORP, INC. AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
NOTE 1 BASIS OF CONSOLIDATION AND PRESENTATION
Access Anytime Bancorp, Inc. (the "Company") is a thrift holding company for its
wholly-owned subsidiary FirstBank (the "Bank") and the Bank's wholly-owned
subsidiary, First Equity Development Corporation ("FEDCO"). The consolidated
financial statements include the accounts and transactions of the Company, the
Bank and FEDCO. All significant intercompany accounts and transactions have
been eliminated in consolidation.
The unaudited interim financial statements have been prepared by management
of the Company, without audit, pursuant to the rules and regulations of the
Securities and Exchange Commission. Certain information and footnote
disclosures normally included in financial statements prepared in accordance
with generally accepted accounting principles have been omitted pursuant to
such rules and regulations, although management believes that the disclosures
included herein are adequate to make the information presented not
misleading. In the opinion of management, all adjustments (consisting of only
normal recurring accruals) considered necessary for presentation of the
information have been included. The December 31, 1997 consolidated statement
of financial condition, as presented herein, was derived from audited
financial statements, but does not include all disclosures required by
generally accepted accounting principles and should be read in conjunction
with the audited consolidated financial statements of the Company for the
year ended December 31, 1997.
8
ACCESS ANYTIME BANCORP, INC. AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
NOTE 2 SECURITIES
Securities have been classified in the consolidated statements of financial
condition according to management's intent. The carrying amount of securities
and their approximate fair value follow:
Amortized Gross unrealized Fair
Cost Gains Losses Value
----------- ------- ------ -----------
AVAILABLE-FOR-SALE SECURITIES:
March 31, 1998:
Mortgage-backed securities:
GNMA adjustable rate $14,281,575 $64,445 $ 68,687 $14,277,333
----------- ------- -------- -----------
$14,281,575 $64,445 $ 68,687 $14,277,333
----------- ------- -------- -----------
----------- ------- -------- -----------
December 31, 1997:
Mortgage-backed securities:
GNMA adjustable rate $15,036,150 $69,199 $ 73,264 $15,032,085
----------- ------- -------- -----------
$15,036,150 $69,199 $ 73,264 $15,032,085
----------- ------- -------- -----------
----------- ------- -------- -----------
Amortized Gross unrealized Fair
Cost Gains Losses Value
----------- ------- ------ -----------
HELD-TO-MATURITY SECURITIES:
March 31, 1998:
Mortgage-backed securities:
FNMA participation certificates $ 4,054,502 $ -- $ 35,942 $ 4,018,560
FHLMC participation certificates 10,037,843 6,428 35,159 10,009,112
FHLMC adjustable rate 1,537,727 -- 13,777 1,523,950
----------- ------- -------- -----------
$15,630,072 $ 6,428 $ 84,878 $15,551,622
----------- ------- -------- -----------
----------- ------- -------- -----------
December 31, 1997:
Mortgage-backed securities:
FNMA participation certificates $ 4,362,078 $ -- $ 55,795 $ 4,306,283
FHLMC participation certificates 12,942,259 6,127 66,551 12,881,835
FHLMC adjustable rate 1,643,062 -- 28,099 1,614,963
----------- ------- -------- -----------
$18,947,399 $ 6,127 $150,445 $18,803,081
----------- ------- -------- -----------
----------- ------- -------- -----------
9
ACCESS ANYTIME BANCORP, INC. AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
NOTE 3 LOANS HELD-FOR-SALE
The carrying amount of loans held-for-sale and their estimated fair value, as
determined on an aggregate basis, follows:
Gross unrealized
-------------------------
Amortized cost Gains Losses Fair value
-------------- ----------- ---------- -----------
March 31, 1998 $ 1,053,004 $ 21,412 $ -- $ 1,074,416
December 31, 1997 297,873 6,277 -- 304,150
NOTE 4 LOANS RECEIVABLE
The components of loans in the consolidated statements of financial condition
were as follows:
March 31, December 31,
1998 1997
----------- ------------
First mortgage loans:
Conventional $50,329,475 $41,730,469
FHA insured and VA guaranteed 5,452,225 4,531,977
Consumer and installment loans 11,690,443 11,377,032
Consumer timeshare loans
Construction loans 1,006,000 889,400
Other 1,355,888 1,167,782
----------- ------------
69,834,031 59,696,660
Less:
Loans in process 671,382 535,054
Unearned discounts, deferred loan fees, and other 521,704 461,765
Allowance for loan losses 537,119 527,347
----------- ------------
$68,103,826 $58,172,494
----------- ------------
----------- ------------
An analysis of the changes in allowance for loan losses follows:
Three Months Ended Year Ended
March 31, 1998 December 31, 1997
------------------ -----------------
Balance at beginning of year $ 527,347 $ 429,241
Loans charged-off (26,298) (61,597)
Recoveries 900 41,786
----------- ------------
Net loans charged-off (25,398) (19,811)
Provision for loan losses charged to operations 35,170 117,917
----------- ------------
Balance at end of period $ 537,119 $ 527,347
----------- ------------
----------- ------------
10
ACCESS ANYTIME BANCORP, INC. AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
NOTE 4 LOANS RECEIVABLE (CONTINUED)
An analysis of the changes of loans to directors, executive officers, and major
stockholders is as follows:
Three Months Ended Year Ended
March 31, 1998 December 31, 1997
------------------ -----------------
Balance at beginning of year $984,434 $315,605
Loans originated -- 904,375
Loan principal payments and other reductions (18,058) (235,546)
-------- --------
Balance at end of period $966,376 $984,434
-------- --------
-------- --------
NOTE 5 NON-PERFORMING ASSETS
The composition of the Bank's portfolio of non-performing assets is shown in
the following table:
March 31, 1998 December 31, 1997
------------------ -----------------
Non-accruing loans* $ 49,187 $ 6,935
Past due 90 days or more and still accruing 1,084 --
Other real estate 109,550 76,091
-------- --------
Total non-performing assets $159,821 $ 83,026
-------- --------
-------- --------
Ratio of non-performing assets to total assets 0.14% 0.08%
-------- --------
-------- --------
* Primarily loans which are past due for 90 days or more
11
ACCESS ANYTIME BANCORP, INC. AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
NOTE 6 NET INCOME PER SHARE
Net income per share has been computed by dividing net income available to
common stockholders for the period by the weighted average number of common
shares outstanding during the period. Net income per share has been computed by
dividing net income available to common stockholders for the period by the
weighted average number of common shares outstanding during the period adjusted
for the assumed exercise of outstanding stock options and other contingently
issuable shares of common stock. Net income for basic and diluted earnings per
share are the same, as there are no contingently issuable shares of stock whose
issuance would have impacted net income. A reconciliation between basic and
diluted weighted average common shares outstanding follows:
Three Months Ended
March 31,
---------------------------
1998 1997
--------- --------
Weighted average common
shares - Basic 1,217,336 913,888
Plus effect of dilutive
securities:
Stock Options 78,874 --
Common Stock Rights 1,579 --
--------- --------
Weighted average common
shares - Assuming Dilution 1,297,789 913,888
--------- --------
--------- --------
12
ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION
THE FOREGOING DISCUSSION SHOULD BE READ IN CONJUNCTION WITH ACCESS ANYTIME
BANCORP, INC.'S ("THE COMPANY") 1997 ANNUAL REPORT ON FORM 10-KSB.
GENERAL
The Company is a Delaware corporation which was organized in 1996 for the
purpose of becoming the thrift holding company of FirstBank (the "Bank"). The
Bank is a federally chartered stock savings bank conducting business from three
banking locations in Clovis and Portales, New Mexico and a loan production
office in Rio Rancho, New Mexico. The Bank has a wholly-owned subsidiary which
is currently inactive.
The Bank is principally engaged in the business of attracting retail deposits
from the general public and investing those funds in first mortgage loans in
owner occupied, single-family residential loans and mortgage-backed securities.
To a lesser extent, the Bank originates residential construction loans and
commercial real estate loans. The Bank also originates consumer loans,
including loans for the purchase of automobiles and home improvement loans, and
commercial loans including Small Business Administration loans.
The most significant outside factors influencing the operations of the Bank and
other financial institutions include general economic conditions, competition in
the local market place and the related monetary and fiscal policies of agencies
that regulate financial institutions. More specifically, the cost of funds,
primarily consisting of deposits, is influenced by interest rates on competing
investments and general market rates of interest. Lending activities are
influenced by the demand for real estate financing and other types of loans,
which in turn is affected by the interest rates at which such loans may be
offered and other factors affecting loan demand and funds availability.
FINANCIAL CONDITION
Total assets for the Company increased by $6,835,000 or 6.4%, from December 31,
1997 to March 31, 1998. The increase in assets was due to an increase of
approximately $9.9 million in loans receivable which was partially offset by a
decrease of approximately $3.3 million in securities held-to-maturity during the
quarter ended March 31, 1998 which is the result of management's efforts to
increase interest earning assets. The increase in loans receivable, primarily
in conventional first mortgage loans, reflects an increase in loans originated
during the first quarter of 1998 which is the result of a continued loan
development program established by the Bank's management. Principal prepayment
on mortgage loans remains strong and combined with the maturing mortgage-backed
securities portfolio caused the decrease in securities held-to-maturity. Total
liabilities increased by $6,750,000, or 6.9%, during the quarter ended March
31,1998. An increase in FHLB advances of $5.8 million and $1.0 million in
deposits caused the increase in total liabilities from December 31, 1997 to
March 31, 1998. The additional borrowings were necessitated in order to fund
the asset growth previously discussed.
13
CAPITAL ADEQUACY AND LIQUIDITY
CAPITAL ADEQUACY - Under the Financial Institutions Reform, Recovery and
Enforcement Act of 1989 ("FIRREA") and the implementation of Office of Thrift
Supervision ("OTS") regulations on December 7, 1989, effective date of the new
capital standards, the Bank must have: (1) Tier 1 or core capital equal to 3%
of adjusted total assets and (2) total capital equal to 8.0% of risk-weighted
assets, which includes off-balance sheet items.
Under Federal Deposit Insurance Corporation Improvement Act ("FDICIA") to be
deemed "well capitalized" the minimum ratios the Bank must have are : (1) Tier 1
or core capital of 5% of adjusted total assets, (2) Tier 1 risk-based capital of
6% of risk-weighed assets, and (3) total risk- based capital of 10% of risk
weighted assets.
The following table is a reconciliation of the Bank's capital for regulatory
purposes at March 31, 1998 as reported to the OTS.
Tier 1- Tier 1- Total
Core Risk-based Risk-based
Capital Capital Capital
------------ ----------- -----------
Total regulatory assets $113,751,752
Net realized depreciation on available-for-sale securities, net 2,801
Less intangible assets disallowed for regulatory purposes (765,969)
------------
Adjusted regulatory total assets $112,988,584
------------
------------
Risk-based assets $56,561,000 $56,561,000
----------- -----------
----------- -----------
Stockholders' equity $ 8,990,315 $ 8,990,315 $ 8,990,315
Net realized depreciation on available-for-sale securities, net 2,801 2,801 2,801
General valuation allowance -- -- 537,119
Less intangible assets disallowed for regulatory purposes (765,969) (765,969) (765,969)
------------ ----------- -----------
Regulatory capital 8,227,147 8,227,147 8,764,266
Regulatory capital required to be "well capitalized" 5,649,429 3,393,660 5,656,100
------------ ----------- -----------
Excess regulatory capital $ 2,577,718 $ 4,833,487 $ 3,108,166
------------ ----------- -----------
------------ ----------- -----------
Bank's capital to adjusted regulatory assets 7.28%
------------
------------
Bank's capital to risk-based assets 14.55% 15.50%
----------- -----------
----------- -----------
LIQUIDITY
Liquidity enables the Bank to meet withdrawals of its deposits and the needs of
its loan customers. The Bank maintains its liquidity position through
maintenance of cash resources and a core deposit base. A further source is the
Bank's ability to borrow funds. The Bank is a member of the Federal Home Loan
14
Bank ("FHLB") which provides a source of borrowings to the Bank for asset and
asset/liability matching. As of March 31, 1998, the Bank had $5,750 million
in FHLB borrowings.
RESULTS OF OPERATIONS
THREE-MONTH COMPARATIVE ANALYSIS FOR PERIODS ENDED MARCH 31, 1998 AND 1997
Net income for the quarter ended March 31, 1998 was $74,000 or $.06 per share
compared to $111,000 or $.12 per share for the quarter ended March 31, 1997.
Net interest income before provision for loan losses increased by
approximately $109,000 to $841,000 for the three-month period ended March 31,
1998 compared to $732,000 for the same period in 1997. The increase was the
result of management's efforts to increase loans receivable in an effort to
enhance interest income. During the first quarter of 1998 the provision for
loan losses increased to $35,000 compared to $23,000 in 1997.
Noninterest income decreased by $14,000 or 6.05% to $221,000 in the
three-months ended March 31, 1998 compared to $235,000 in 1997. The decrease
was due to a $18,000 gain in the first quarter in 1997 on the sale of
available-for-sale mortgage-backed securities.
Noninterest expense was $925,000 in the first quarter of 1998 compared to
$834,000 in 1997. The increase in noninterest expense was principally due to
the conversion cost to a new data processor and overtime and salaries
expenses which lead to a $77,000 or 19.03% increase in salaries and employee
benefits in 1998 as compared to the same period in 1997. Deposit insurance
premium decreased by $29,000, while professional fees increased by $14,000
and other expense increased by $18,000 in the three-months ended March 31,
1998 compared to the same period in 1997.
Income tax expense for the first quarter of 1998 was $27,000 compared to no
tax expense in the same quarter in 1997. Prior to 1997, the deferred tax
asset valuation allowance was due primarily to NOL carryforwards which were
not expected to be utilized before their respective expiration dates or which
benefits the Company was unable to predict whether they would more likely
than not be realized. During the third quarter of 1997, the Company changed
its estimate with respect to the future benefits of the NOL carryforwards
and, accordingly, reduced the related valuation allowance. To the extent the
valuation allowance was reduced the related tax benefit was credited to
income during that quarter, therefore, periods after 1997 will include income
tax expense based on earnings of the Company.
15
FORWARD-LOOKING STATEMENTS
When used in this Form 10-QSB, certain words or phrases are intended to
identify "forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. Such statements are subject to
certain risks and uncertainties - including, changes in economic conditions
in the Company's market area, changes in policies by regulatory agencies,
fluctuations in interest rates, demand for loans in the Company's market area
and competition, that could cause actual results to differ materially from
historical earnings and those presently anticipated or projected. The
Company wishes to caution readers not to place undue reliance on any such
forward-looking statements, which speak only as of the date made. The
Company wishes to advise readers that the factors listed above could affect
the Company's financial performance and could cause the Company's actual
results for future periods to differ materially from any opinions or
statements expressed with respect to future periods in any current statements.
The Company does not undertake - and specifically disclaims any obligation -
to publicly release the results of any revisions which may be made to any
forward-looking statements to reflect events or circumstances after the date
of such statements or to reflect the occurrence of anticipated or
unanticipated events.
16
PART II - OTHER INFORMATION
Item 1 - Legal Proceedings
None
ITEM 6 - EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
27.1 Financial Data Schedule
(b) Reports on Form 8-K.
None
17
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) 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.
ACCESS ANYTIME BANCORP, INC.
Date: April 28, 1998 /s/ Norman R. Corzine
--------------------------------------------
Norman R. Corzine, Chairman of the Board,
Chief Executive Officer
(DULY AUTHORIZED REPRESENTATIVE)
Date: April 28, 1998 /s/ Ken Huey, Jr.
--------------------------------------------
Ken Huey, Jr., President, Chief Financial
Officer and Director
(PRINCIPAL FINANCIAL AND ACCOUNTING OFFICER)
(DULY AUTHORIZED REPRESENTATIVE)
18