<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
------------------------
FORM 10-Q
(Mark One)
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15 (d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 1996
------------------------------------------------
or
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
COMMISSION FILE NUMBER: 0-27142
-------
L & B FINANCIAL, INC.
---------------------
(Exact name of registrant as specified in its charter)
Texas 75-2619961
- ------------------------------- -----------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
306 North Davis
Sulphur Springs, Texas 75482
- ------------------------------- ------------------------
(Address of principal (Zip Code)
executive office)
Registrant's telephone number, including area code: (903) 885-2121
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
--- ---
As of October 18, 1996, 1,667,500 shares of the registrant's common stock, $.01
par value, were issued and 1,584,125 shares were outstanding.
<PAGE>
L & B FINANCIAL, INC.
INDEX
-----
PART I. Financial Information Page
--------------------- ----
Item 1. Consolidated Financial Statements (unaudited)
Consolidated Statements of Financial Condition
as of September 30, 1996 and June 30, 1996 1
Consolidated Statements of Income for the
three months ended September 30, 1996 and 1995 2
Consolidated Statements of Cash Flows for
the three months ended September 30, 1996 and 1995 3
Consolidated Statements of Changes in
Stockholders' Equity for the three months
ended September 30, 1996 4
Notes to Consolidated Financial Statements 5
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations 6-9
PART II. Other Information
-----------------
Item 1. Legal Proceedings 10
Item 2. Changes in Securities 10
Item 3. Defaults Upon Senior Securities 10
Item 4. Submission of Matters to a Vote of Security Holders 10
Item 5. Other Information 10
Item 6. Exhibits and Reports on Form 8-K 10
Signatures 11
<PAGE>
Part I. - Consolidated Financial Information
Item 1. Consolidated Financial Statements
---------------------------------
L & B FINANCIAL, INC.
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
September 30, 1996 (unaudited) and June 30, 1996 (in thousands)
<TABLE>
<CAPTION>
September 30, June 30,
1996 1996
----------------------
<S> <C> <C>
ASSETS
Cash $ 1,463 $ 1,386
Short term interest bearing deposits 9,696 7,530
----------------------
Total cash and cash equivalents 11,159 8,916
----------------------
Investment and mortgage-backed securities:
Held -to- maturity, at amortized cost 38,219 42,178
Available-for-sale, at market value 21,277 21,986
----------------------
Total investment and mortgage-backed
securities 59,496 64,164
----------------------
Loans receivable, net:
Held-for-sale, at market value 367 490
Held-for-investment 68,675 65,862
----------------------
Total loans receivable, net 69,042 66,352
----------------------
Office property and equipment, net 2,300 2,268
Real estate acquired in the settlement of loans 293 353
Accrued interest receivable 990 972
Federal Home Loan Bank stock, at cost 762 751
Other assets 562 354
----------------------
Total Assets 144,604 144,130
======================
LIABILITIES
Deposit accounts 104,242 104,565
Advances from the Federal Home Loan Bank 13,500 13,500
Advances from borrowers for taxes and escrow 1,110 826
ESOP debt 0 0
Accrued interest and other liabilities 1,185 456
----------------------
Total Liabilities 120,037 119,347
======================
STOCKHOLDERS' EQUITY
Preferred stock - no par value,
5,000,000 shares authorized
issued and outstanding - none - -
Common stock - $0.01 par value -
25,000,000 shares authorized,
1,667,500 issued and 1,584,125
outstanding at September 30, 1996 and
at June 30, 1996 17 17
Treasury stock - 83,375 shares, at par (1) (1)
Additional paid-in capital September 30, 1996
and at June 30, 1996 15,165 15,165
Unearned ESOP shares (800) (825)
Unearned compensation (287) (308)
Net unrealized gain (loss) on
investment and mortgage-backed
securities available-for-sale (76) (118)
Retained earnings, substantially restricted 10,549 10,853
----------------------
Total Stockholders' Equity 24,567 24,783
----------------------
Total Liabilities and Stockholders' Equity $144,604 $144,130
======================
</TABLE>
1
<PAGE>
L & B FINANCIAL, INC.
CONSOLIDATED STATEMENTS OF INCOME
Three Months Ended September 30, 1996 (unaudited) and 1995 (unaudited)
(in thousands)
<TABLE>
<CAPTION>
Three Months Ended
September 30, September 30,
1996 1995
-----------------------------
<S> <C> <C>
Interest Income:
Loans $ 1,534 $ 1,418
Interest and dividends on investment 211 296
securities
Mortgage-backed securities 791 866
Deposits and overnight funds 110 76
-------------------------
Total interest income 2,646 2,656
-------------------------
Interest Expense:
Deposits 1,274 1,206
Advances from the FHLB 193 88
-------------------------
Total interest expense 1,467 1,294
-------------------------
Net interest income 1,179 1,362
Provision for loan loss 0 0
-------------------------
Net interest income after provision for 1,179 1,362
loan loss
Other Income:
Fees for financial services 38 25
Loan servicing fees 11 15
Net gain on the sale of loans 27 0
-------------------------
Total other income 76 40
-------------------------
Other Expense:
Compensation and employee benefits 420 500
Occupancy and equipment 103 93
Deposit insurance premiums 700 56
Professional services 167 85
Income on foreclosed real estate (3) (11)
Other 108 152
-------------------------
Total other expense 1,495 875
-------------------------
Income (loss) before income tax (240) 527
Income tax expense (benefit) (86) 160
-------------------------
Net income (loss) $ (154) $ 367
=========================
Earnings (loss) per common share of
stock $ (0.10) $ 0.23
-------------------------
Weighted average number of shares of
common stock 1,505,559 1,580,815
-------------------------
</TABLE>
2
<PAGE>
L & B FINANCIAL, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
Three Months Ended September 30, 1996 (unaudited) and 1995 (unaudited)
(in thousands)
<TABLE>
<CAPTION>
Three Months Ended
September 30, September 30,
1996 1995
-----------------------------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) $ (154) $ 367
Adjustments to reconcile net income to
net cash provided by operating activities:
Depreciation and amortization of 45 28
premises and equipment
Unearned compensation expense 46 0
Net gain on the sale of investment $ 0 (2)
securities available-for-sale
Net gain on the sale of loans (27) 0
held-for-sale
Net gain on the sale of REO 0 (5)
FHLB stock dividends (11) (12)
Increase in accrued interest receivable (18) (157)
Increase in other assets (208) (105)
Increase in other liabilities 1,001 472
-----------------------------
Net cash provided by operating activities 674 586
-----------------------------
CASH FLOW FROM INVESTING ACTIVITIES:
Loan originations (19,930) (5,865)
Principal repayments on loans 15,256 3,103
Sale of loans held-for-sale 2,011 2,004
Purchase of investment and
mortgage-backed securities:
Held-to-maturity 0 (11,411)
Available-for-sale 0 (3,006)
Maturity of investment and mortgage-backed
securities held-to-maturity 3,135 525
Sale of investment and mortgage-backed
securities available-for-sale 0 2,000
Principal repayments on mortgage-backed
securities 1,587 2,093
Proceeds from the sale of real estate
acquired through foreclosure 60 8
Purchase of premises and equipment (77) (44)
-----------------------------
Net cash provided by (used in) investing
activities 2,042 (10,593)
-----------------------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Dividends paid in cash ($0.10 per share
- 1996 and 1995) (150) (160)
Net (decrease) increase in deposits (323) 1,080
Repayment of FHLB advances 0 (9,808)
Proceeds from FHLB advances 0 14,904
-----------------------------
Net cash provided by (used in)
financing activities (473) 6,016
-----------------------------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS 2,243 (3,991)
CASH AND CASH EQUIVALENTS AT BEGINNING
OF PERIOD 8,916 6,418
-----------------------------
CASH AND CASH EQUIVALENTS AT END OF
PERIOD $ 11,159 $ 2,427
=============================
</TABLE>
3
<PAGE>
L & B FINANCIAL. INC.
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
Three Months Ended September 30, 1996 (unaudited) (in thousands)
<TABLE>
<CAPTION>
Net unrealized
gain/(loss) on Retained
Additional Unearned securities Earnings- Total
Common Treasury Paid-in ESOP Unearned available Substantially Stockholders'
Stock Stock Capital Shares Compensation for sale Restricted Equity
---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
BALANCE AT JUNE 30, 1995 17 0 15,998 (896) 0 (9) 10,544 25,654
---------------------------------------------------------------------------------------------------------
Net change in unrealized
gain (loss) on securities
available-for-sale - - - - - (109) -
Fair value of shares
committed to be released
from ESOP - - - 71 - - - 71
Shares purchased for stock
compensation plans - - - - (420) - (151) (571)
Cash dividend ($0.40 per
share) - - - - - - (625) (625)
Purchase of treasury stock - (1) (833) - - - (365) (1,199)
Compensation expense under
stock compensation plan - - - - 112 - 112
Net income - - - - - 1,450 1,450
---------------------------------------------------------------------------------------------------------
BALANCE AT JUNE 30, 1996 $17 $(1) $15,165 $(825) $(308) $(118) $10,853 $24,783
---------------------------------------------------------------------------------------------------------
Fair value of shares
committed to be released
from ESOP - - - 25 - - - 25
Compensation expense under
stock compensation plan - - - - 21 - - 21
Net change in unrealized
gain (loss) on securities
available-for-sale - - - - - 43 - 43
Cash dividend ($0.10 per
share) - - - - - - (150) (150)
Net income (loss) - - - - - - (154) (154)
BALANCE AT SEPTEMBER 30,
1996 $17 $(1) $15,165 $(800) $(287) $ (75) $10,549 $24,568
---------------------------------------------------------------------------------------------------------
</TABLE>
4
<PAGE>
L & B FINANCIAL, INC.
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
1. Presentation of Consolidated Financial Statements
-------------------------------------------------
The unaudited consolidated financial statements were prepared in accordance with
instructions for Form 10-Q and, therefore, do not include the information, or
footnotes, necessary for a complete presentation of consolidated financial
position, results of operations, and cash flows in conformity with generally
accepted accounting principles. However, all adjustments which, in the opinion
of management, are necessary for a fair presentation of the interim consolidated
financial statements have been included. All such adjustments are of a normal
and recurring nature. The results of operations for the three months ended
September 30, 1996 are not necessarily indicative of the results which may be
expected for the entire fiscal year. Certain amounts in the prior year's
financial statements have been reclassified to conform with current year
classifications.
On November 13, 1995, Sulphur Springs Loan and Building Association
("Association") reorganized into the holding company form of ownership
("Reorganization"), resulting in the Registrant becoming the sole stockholder of
the Association. Each outstanding share of common stock of the Association and
options to acquire shares of common stock of the Association, became outstanding
shares of common stock of the Registrant and options to acquire common shares of
the Registrant, respectively, as a result of the Reorganization. Accordingly,
the financial statements for the three months end September 30, 1995 are those
of the Association. The consolidated financial statements for the three months
ended September 30, 1996 include the accounts of L&B Financial, Inc. ( the
"Corporation") and the Association. Significant intercompany balances and
transactions have been eliminated in consolidation.
Prior to the Reorganization, the Corporation had no material assets or
liabilities and engaged in no business activity. Subsequent to the acquisition
of the Association, the Registrant has engaged in no significant activity other
than holding the stock of the Association and engaging in certain passive
investment activities. On November 31, 1995, the Association converted from a
Texas chartered savings and loan association to a Texas chartered savings bank
to be known as Loan and Building State Savings Bank (the "Bank").
2. Earnings per Common and Common Equivalent Share of Stock
--------------------------------------------------------
Earnings per share for the three months ended September 30, 1996 and 1995 were
computed based on the weighted average number of common shares outstanding
during the periods. Stock options outstanding are not considered in determining
earnings per share because they have no significant dilutive effect on earnings
per share. The Corporation accounts for the 100,050 shares acquired by the
ESOP in accordance with Statement of Position 93-6. Shares controlled by the
ESOP are not considered in the weighted average shares outstanding until the
shares are committed for allocation.
3. Assets Pledged
--------------
At September 30, 1996, $300,000 of debt securities were pledged by the
Corporation as collateral to secure deposits of the Federal Reserve Bank of
Dallas.
The Corporation pledges as collateral for Federal Home Loan Bank advances their
Federal Home Loan Bank stock and has entered into a blanket collateral agreement
with the Federal Home Loan Bank whereby the Corporation maintains, free of other
encumbrances, qualifying mortgages (as defined) with unpaid principal balances
equal to, when discounted at 65% of the unpaid principal balances, 100% of
outstanding advances.
4. Commitments
-----------
At September 30, 1996, the Corporation had outstanding loan commitments,
excluding approximately $2,524,000
5
<PAGE>
of undisbursed interim construction loans, totaling approximately $1,235,000.
Item 2. Management's Discussion and Analysis of Consolidated Financial
Condition and Results of Operations
Financial Condition
- -------------------
The Corporation's total assets essentially remained unchanged, increasing
slightly to $144,604,000 at September 30, 1996, as compared to $144,130,000 at
June 30, 1996. The Corporation has focused its efforts on the origination of
new loans, increasing loans receivable, net, to $69,042,000 at September 30,
1996 from $66,352,000 at June 30, 1996, an increase of $2,690,000, representing
a 16.2% annualized growth rate. This growth has been funded with the maturities
of investment securities and the principal repayments of mortgage-backed
securities and collateralized mortgage obligations ("CMO's"). Investments and
mortgage-backed securities decreased $4,668,000 to $59,496,000 at September 30,
1996 from $64,164,000 at June 30, 1996. Overnight interest bearing deposits
increased $2,166,000 to $9,696,000 at September 30, 1996. This increase
represents loanable funds received from the maturity of investment securities at
the end of the period.
As of September 30, 1996, real estate acquired through foreclosure ("REO")
consisted of five properties with a net book value of approximately $293,000.
Four of the properties are single family residences with a combined book value
of $143,000. The remaining property is a small commercial strip center with a
book value of $150,000.
The Corporation experienced a slight decrease in deposits during the three
months ended September 30, 1996. Deposits decreased $323,000, or 0.3%, to
$104,242,000 at September 30, 1996 from $104,565,000 at June 30, 1996. This
slight decrease is the result of the competitive nature of the markets in which
the Corporation competes for deposits and the Corporation's strategic position
in those markets.
Total stockholders' equity decreased 0.9%, or $216,000, to $24,567,000 at
September 30, 1996 from $24,783,000 at June 30, 1996. This decrease is the
result of the $0.10 per common share dividend ($150,000) during the quarter
ended September 30, 1996 coupled with the loss for the period of $154,000.
Liquidity
- ---------
Sufficient liquidity enables the Corporation to meet demand for loan
disbursements, fund deposit withdrawals, purchase investment and mortgage-backed
securities, repay debt, pay interest on deposits and meet other operating
expenses. The Corporation's primary sources of liquidity are savings deposits,
loan repayments, borrowings, and the repayments of principal from investment and
mortgage-backed securities. The availability of funds from the prepayment of
loans and mortgage-backed securities is influenced by interest rates and market
conditions.
The Corporation monitors its liquidity in accordance with applicable regulatory
requirements. The Corporation is subject to certain liquidity requirements as
established by the Texas Savings and Loan Department and the Federal Deposit
Insurance Corporation ('FDIC"). The Corporation is required to maintain a
minimum of 10% of an amount equal to its average daily deposits for the most
recently completed calender quarter in cash, unpledged demand accounts in other
federally insured depositories, accounts at the Federal Reserve Bank and the
Federal Home Loan Bank , and other readily marketable investment securities. The
Corporation's minimum required amount of liquid assets, as defined above, was
$10,390,000 for the quarter ended September 30, 1996. The Bank had $65,914,000
in liquid assets at September 30, 1996, giving the Corporation a liquidity ratio
of 63.43%. As in the past, management expects that the Corporation can meet its
obligations to fund its outstanding loan commitments, which were approximately
$1,235,000, as described in Note 4. to the Consolidated Financial Statements,
and other funding commitments while maintaining liquidity in excess of
regulatory requirements.
6
<PAGE>
Capital Resources
- -----------------
At September 30, 1996, the Corporation exceeded its core capital and risk-based
capital requirements. The following table sets forth (in thousands) the
Corporation's current capital requirements, actual capital position and excess
capital on both a dollar and percentage basis as reported in the September 30,
1996 Call Report.
<TABLE>
<CAPTION>
Tier One Tier One Tier Two
Core Risk-based Risk-based
Capital Capital Capital
--------------------------------------
<S> <C> <C> <C>
Adjusted capital $18,923 $18,923 $19,679
Capital ratio 20.42% 29.12% 30.28%
Minimum capital requirement 3,707 2,600 5,200
Minimum capital ratio 4.00% 4.00% 8.00%
Excess capital 15,216 16,323 14,479
Excess capital ratio 16.42% 25.12% 22.28%
Total adjusted assets $92,666 $64,992 $64,992
--------------------------------------
</TABLE>
Results of Operations for the Three Month Period Ended
- -------------------------------------------------------
September 30, 1996 and 1995
- ---------------------------
General
- -------
The Corporation experienced a loss of $154,000, or $0.10 per share, for the
three months ended September 30, 1996 as compared to net income of $367,000 for
the three months ended September 30, 1995. This $521,000 swing in net income is
the result of a special assessment levied upon the Corporation by the Federal
Insurance Deposit Corporation ("FDIC") to recapitalize the Savings Association
Insurance Fund ("SAIF"). The assessment was set at $0.657 per $100 of
assessable deposits as of March 31, 1995. This assessment eliminates a large
portion of the disparity in deposit insurance premiums paid by Bank Insurance
Fund ("BIF") insured institutions and SAIF-insured institutions. SAIF-insured
institutions will pay $0.051 per $100 of assessable deposits more than BIF-
insured institutions through the end of 1999. The Corporation took a $640,000
pre-tax charge ($423,000 net of tax ) against earnings. The Corporation also
experienced a decrease in net interest income before provision for loan losses
of $183,000, or 13.4%, to $1,179,000 for the three months ended September 30,
1996 as compared to the same three month period ended September 30, 1995. The
Corporation did experience an increase in other income of $36,000 to $76,000 for
the three months ended September 30, 1996 as compared with $40,000 for the three
months ended September 30, 1995.
Interest Income
- ---------------
Total interest income decreased $10,000 to $2,646,000 for the three months ended
September 30, 1996 from $2,656,000 for the three months ended September 30,
1995. While the net change in total interest income for the three months ended
September 30, 1996 as compared to September 30, 1995 was minimal, the
Corporation experienced a shift in interest income from interest and dividends
on investment securities and interest income on mortgage-backed securities to
interest income on loans. This movement is consistent with the Corporation's
movement out of investment securities and into loans. The Corporation
experienced an increase of $116,000, or 8.2%, in interest income on loans to
$1,534,000 for the three months ended September 30, 1996 from $1,418,000 for the
three months ended September 30, 1996. Interest and dividends on investments
and interest income on
7
<PAGE>
mortgage-backed securities decreased $85,000 and $75,000, respectively, for the
three months ended September 30, 1996 as compared with the three months ended
September 30, 1995. Interest income on overnight deposits and fed funds sold
increased $34,000 for the three months ended September 30, 1996 as compared to
the same period in fiscal 1995. The Corporation's current strategy is to not
reinvest the investment and mortgage-backed securities portfolio runoff into new
investment securities; instead, the Corporation is using these funds to
originate new loans, which sometimes leads to excess cash being placed in
overnight interest-bearing deposits until they are loaned out.
Interest Expense
- ----------------
Total interest expense for the three months ended September 30, 1996 increased
$173,000, or 13.4%, to $1,467,000 as compared to $1,294,000 for the three months
ended September 30, 1995. Interest expense on deposits increased $68,000 for
the three month period due to the higher rates paid on deposit accounts in 1996
as compared with 1995. Interest paid on the Corporation's FHLB advances was
$193,000, an increase of $105,000 from the same time period last year. During
the period ended September 30, 1996, the Corporation's average outstanding
balance was $13,500,000 and during the comparable period in 1995, the average
outstanding balance for the quarter was $8,301,000.
Provision for Loan Loss
- -----------------------
The provision for loan loss is charged to earnings to bring the total allowance
for loan loss to a level deemed appropriate by management based on historical
experience, the volume and type of lending being conducted by the Corporation,
industry standards, the amount of the Corporation's non-performing assets,
general economic conditions, and other factors related to the collectability of
the Corporation's loan portfolio. During the three months ended September 30,
1996 and 1995 there was no provision for loan loss. As of September 30, 1996,
the Corporation's allowance for loan loss was $756,000, or 1.1% of total loans,
net and 234.0% of loans which were contractually past due ninety days or more as
of such date.
The following table sets forth information with respect to the Bank's non-
performing assets for the periods indicated (in thousands).
<TABLE>
<CAPTION>
September 30, June 30,
1996 1996
---------------------
<S> <C> <C>
Loans which are contractually past due
90 days or more:
Real estate:
Residential $ 290 $ 137
Commercial 12 0
Construction 0 0
Non-mortgage 22 0
---------------------
Total $ 324 $ 137
=====================
Percentage of loans receivable, net 0.47% 0.21%
Allowance for loan loss $ 756 $ 756
Real estate acquired through foreclosure $ 293 $ 353
---------------------
</TABLE>
Other Income
- ------------
Other income increased $36,000, or 90.0%, to $76,000 for the three months ended
September 30, 1996 as compared with $40,000 for the three months ended September
30,1995. This increase was primarily due to a net gain on the
8
<PAGE>
sale of loans of $27,000 during the three months ended September 30, 1996.
During the comparable period in fiscal 1995, the Corporation realized no gains
on the sale of loans. Fees for financial services increased $13,000 for the
three months ended September 30, 1996 and represents an increase of 52% over the
three months ended September 30, 1995. The Corporation continuously searches for
new sources of revenues and recently reviewed all the of the fees charged for
financial services.
Other Expense
- -------------
Total other expense increased $620,000, or 70.9%, to $1,495,000 for the three
months ended September 30, 1996, as compared to $875,000 for the same period in
1995. This dramatic increase was due to the $640,000 deposit insurance
assessment discussed above. The assessment is due and payable on November 27,
1996. Professional fees increased $82,000, or 96.5%, to $167,000 for the three
months ended September 30, 1996 from $85,000 for the three months ended
September 30, 1996 due to fees associated with the Corporation's proposed merger
with Jefferson Bancorp. This increase was offset by a decrease in compensation
and employee benefits of $80,000 for the three months ended September 30, 1996.
Compensation and employee benefits decreased due to changes in employee health
care benefits and the elimination of free dependent coverage and a change in the
Corporation's bonus policy. Other expenses decreased $44,000 to $108,000 for
the three months ended September 30, 1996 from $152,000 for the three months
ended September 30, 1995. This reduction is the result of general cost
containment measures taken by the Corporation to increase profitability and
eliminate unnecessary costs.
Taxes on Income
- ---------------
The Corporation had a negative provision for income tax for the three months
ended September 30, 1996 in the amount of $86,000. This compares with a
provision for income taxes of $367,000 (31.5% tax rate) for the comparable
period in 1995. The negative provision for income taxes for the three months
ended September 30, 1996 is the result of the creation of a current deferred tax
asset of $218,000 associated with the $640,000 insurance assessment. The
Corporation will realize this expense for tax purposes when the assessment is
paid.
9
<PAGE>
PART II. OTHER INFORMATION
Item 1. Legal Proceedings
-----------------
The Corporation is involved in various claims and legal actions arising
in the normal course of business. Management believes that these
proceedings will not result in a material loss to the Bank.
Item 2. Changes in Securities
---------------------
Not applicable.
Item 3. Defaults upon Senior Securities
-------------------------------
Not applicable.
Item 4. Submission of Matters to a Vote of Security Holders
---------------------------------------------------
Not applicable.
Item 5. Other Information
-----------------
Not applicable.
Item 6. Exhibits and Reports on Form 8-K
--------------------------------
a. Exhibit
27 Financial Data Schedule
b. Reports on Form 8-K - none
10
<PAGE>
SIGNATURES
Pursuant to 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.
L & B Financial, Inc.
---------------------
(Registrant)
DATE: 11-13-96 By: /s/ C. GLYNN LOWE
-------------------- -------------------------------
C. Glynn Lowe
President
DATE: 11-13-96 By: /s/ JEFFREY C. DAVID
-------------------- -------------------------------
Jeffrey C. David
Chief Financial Officer
11
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 9
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM SEPTEMBER
30, 1996 10-Q AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL
STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> JUN-30-1997
<PERIOD-START> JUL-01-1996
<PERIOD-END> SEP-30-1996
<CASH> 1,463
<INT-BEARING-DEPOSITS> 9,696
<FED-FUNDS-SOLD> 0
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 21,227
<INVESTMENTS-CARRYING> 38,219
<INVESTMENTS-MARKET> 0
<LOANS> 69,769
<ALLOWANCE> 755
<TOTAL-ASSETS> 144,604
<DEPOSITS> 104,242
<SHORT-TERM> 13,500
<LIABILITIES-OTHER> 2,295
<LONG-TERM> 0
0
0
<COMMON> 15,181
<OTHER-SE> 9,386
<TOTAL-LIABILITIES-AND-EQUITY> 144,604
<INTEREST-LOAN> 1,534
<INTEREST-INVEST> 1,002
<INTEREST-OTHER> 110
<INTEREST-TOTAL> 2,646
<INTEREST-DEPOSIT> 1,274
<INTEREST-EXPENSE> 1,467
<INTEREST-INCOME-NET> 1,179
<LOAN-LOSSES> 0
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 1,419
<INCOME-PRETAX> (240)
<INCOME-PRE-EXTRAORDINARY> (240)
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (154)
<EPS-PRIMARY> (0.10)
<EPS-DILUTED> (0.10)
<YIELD-ACTUAL> 747
<LOANS-NON> 331
<LOANS-PAST> 0
<LOANS-TROUBLED> 117
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 755
<CHARGE-OFFS> 0
<RECOVERIES> 0
<ALLOWANCE-CLOSE> 755
<ALLOWANCE-DOMESTIC> 755
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
