ALGIERS BANCORP INC
10QSB, 1996-06-27
SAVINGS INSTITUTIONS, NOT FEDERALLY CHARTERED
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<PAGE>


                                  UNITED STATES

                       SECURITIES AND EXCHANGE COMMISSION

                             WASHINGTON, D.C. 20549

                                   FORM 10-QSB

   X      QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
- -------   EXCHANGE ACT OF 1934

          For the quarterly period ended March 31, 1996

- -------   TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
          ACT OF 1934

          For the transition period from --------- to --------- 

                         Commission File Number 333-2770

                              ALGIERS BANCORP, INC.
        (Exact name of small business issuer as specified in its charter)

                LOUISIANA                                     72 - 1317594
     -------------------------------                       -------------------
     (State or other jurisdiction of                        (I.R.S. Employer
      incorporation or organization)                       Identification No.)

             #1 WESTBANK EXPRESSWAY, NEW ORLEANS, LOUISIANA 70114
                   (Address of principal executive offices)
                                              
          Issuer's telephone number, including area code: (504) 367-8221

          Check mark 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 issuer was required to
          file such reports), and (2) has been subject to such filing
          requirements for the past 90 days.  Yes       No   X* 
                                                  -----    -----

          Shares of common stock, par value $.01 per share, outstanding as of
          March 31, 1996:  100

          Transitional Small business Disclosure Format (check one):
          Yes       No   X  .
              -----    -----

          *The issuer just became subject to the filing requirements of 
           Section 13 or 15(d) when its Form SB-2 was declared effective on 
           May 13, 1996.




<PAGE>


                              ALGIERS BANCORP, INC.

                                   FORM 10-QSB

                          QUARTER ENDED MARCH 31, 1996

                         PART I - FINANCIAL INFORMATION

Interim Financial Information required by Rule 10-01 of Regulation S-X and 
Item 303 of Regulation S-B is included in this Form 10-Q as referenced below:

Item 1 - Financial Statements

     Statement of Financial Condition at March 31, 1996 ................Page 3

     Statement of Income From February 5, 1996 (Date 
       of Incorporation) To March 31,1996 ..............................     4

     Statement of Cash Flows From February 5, 1996 (Date of
       Incorporation) To March 31, 1996 ................................     5

     Notes to Financial Statements .....................................     6

Item 2 - Management's Discussion and Analysis of Financial                    
 Condition and Results of Operations ...................................     7

                           PART II - OTHER INFORMATION

Item 1 - Legal Proceedings .............................................     8

Item 2 - Changes in Securities .........................................     8

Item 3 - Defaults Upon Senior Securities ...............................     8

Item 4 - Submission of Matters to a Vote of Security-Holders ...........     8

Item 5 - Other Information .............................................     8

Item 6 - Exhibits and Reports on Form 8-K ..............................     8

Signatures .............................................................     9


                                       2


<PAGE>


                              Algiers Bancorp, Inc.

                        STATEMENT OF FINANCIAL CONDITION

                                 March 31, 1996
                                   (Unaudited)




                                     ASSETS
Assets:
  Receivable                                                          $ 1,000
                                                                     ---------
     Total Assets                                                     $ 1,000
                                                                     =========

                       LIABILITIES AND STOCKHOLDER EQUITY

Liabilities                                                           $   -   
                                                                     ---------
     Total Liabilities                                                $   -   

Stockholders' Equity:
  Common Stock, Par Value $.01, 10,000,000
    Shares Authorized; 100 Shares Issued and 
    Outstanding                                                       $     1

  Paid in Capital in Excess of Par                                        999

  Retained Earnings                                                       -  
                                                                     ---------
    Total Stockholder Equity                                          $ 1,000
                                                                     ---------

    Total Liabilities and Stockholder
    Equity                                                            $ 1,000
                                                                     =========


















               See accompanying notes to financial statements.


                                       3


<PAGE>

                              Algiers Bancorp, Inc.

                               STATEMENT OF INCOME

                      For the Period from February 5, 1996
                    (Date of Incorporation) to March 31, 1996
                                   (Unaudited)






Total Income                                                          $   -   
Total Expense                                                         $   -   
                                                                     ---------
  Net Income                                                          $   -   
                                                                     =========

Earnings Per Share                                                    $   -   
                                                                     =========

















               See accompanying notes to financial statements.


                                       4


<PAGE>

                              Algiers Bancorp, Inc.

                             STATEMENT OF CASH FLOWS

                      For the Period from February 5, 1996
                    (Date of Incorporation) to March 31, 1996
                                   (Unaudited)


Operations:
  Net Cash Provided by Operations                                     $   -   

Investing Activities:
  Net Cash Provided by Investing Activities                               -   

Financing Activities:
  Proceeds from Stock Issuance                                          1,000
                                                                     ---------
  Net Cash Provided by Financing Activities                             1,000
                                                                     ---------
Increase in Cash and Cash Equivalents                                   1,000

Cash and Cash Equivalents at Beginning of Period                          -   
                                                                     ---------
Cash and Cash Equivalents at End of Period                            $ 1,000
                                                                     =========

















               See accompanying notes to financial statements.


                                       5


<PAGE>

                              Algiers Bancorp, Inc.

                          NOTES TO FINANCIAL STATEMENTS
                                   (Unaudited)

                                 March 31, 1996

Note 1 - Basis of Presentation -

     On February 5, 1996, Algiers Homestead Association (the "Homestead") 
incorporated Algiers Bancorp, Inc., (the "Company") to facilitate the 
conversion of the Homestead from mutual to stock form (the "Conversion").  In 
connection with the Conversion, the Company is offering its common stock to 
the depositors and borrowers of the Homestead as of specified dates, to an 
employee stock ownership plan and to members of the general public.  Upon 
consummation of the Conversion, all of the Homestead's to be outstanding 
common stock will be issued to the Company, and the Company will become the 
holding company for the Homestead.

     The Company filed a Form SB-2 with the Securities and Exchange 
Commission ("SEC") on March 26, 1996, which as amended was declared effective 
by the SEC on May 13, 1996.  The Homestead filed a Form AC with the Office of 
Thrift Supervision ("OTS") and the Office of Financial Institutions ("OFI") 
on March 26, 1996.  The Form AC and related offering and proxy materials, as 
amended, were conditionally approved by the OTS and OFI by letters dated May 
13, 1996 and May 14, 1996.  The Company also filed an Application H-(e) 1-S 
with the OTS and the OFI on March 26, 1996, which was conditionally approved 
by the OTS by letter dated May 13, 1996.  The Application H-(e) 1-S is 
currently pending with the OFI.

     Consummation of the Conversion is contingent upon approval of the plan 
by the members of the Homestead and the sale of a sufficient number of shares 
of common stock consistent with an independent appraisal of the pro forma 
market value of the common stock.  The members of the Association are 
scheduled to vote upon the Plan at a special meeting to be held on June 27, 
1996, and the subscription and community offering closed on June 24, 1996.

     In connection with the incorporation of the Company, the Company issued 
100 shares of common stock to the Association.  The shares will be canceled 
upon consummation of the Conversion, which will be accounted for under the 
pooling of interests method of accounting.

     The accompanying unaudited financial statements were prepared in 
accordance with instructions for Form 10-QSB and, therefore, do not include 
information or footnotes necessary for a complete presentation of financial 
position, results of operations and cash flows in conformity with generally 
accepted accounting principles.  However, all adjustments (consisting only of 
normal recurring accruals) which, in the opinion of management, are necessary 
for a fair presentation of the financial statements have been included.


                                       6


<PAGE>

Note 2 - Earnings Per Share -

     Earnings per share is not considered meaningful as the Conversion has 
not yet been completed, the Company has not yet engaged in operations, and 
the 100 shares currently held by the Association will be canceled upon 
consummation of the Conversion.


























                                       7


<PAGE>

Item 2 - Management's Discussion and Analysis of Financial Condition and Results
of Operations

          Algiers Bancorp, Inc is a Louisiana corporation organized in February,
     1996 by the Homestead for the purpose of becoming a unitary holding company
     of the Homestead.  The Company will purchase all of the capital stock of
     the Homestead to be issued in the Conversion in exchange for 50% of the net
     conversion proceeds and will retain the remaining 50% of the net conversion
     proceeds as its initial capitalization.  Immediately following the
     Conversion, the only significant assets of the Company will be the capital
     stock of the Homestead, the Company's loan to the ESOP, and the remainder
     of the net Conversion proceeds retained by the Company.  Initially, the
     business and management of the Company will primarily consist of the
     business and management of the Homestead.  Initially, the Company will
     neither own nor lease any property, but will instead use the premises,
     equipment and furniture of the Homestead.  At the present time, the Company
     does not intend to employ any persons other than officers of the
     Association, and the Company will utilize the support staff of the
     Homestead from time to time.  Additional employees will be hired as
     appropriate to the extent the Company expands or changes its business in
     the future.

          Management believes that the holding company structure will provide 
     the Company with additional flexibility to diversify, should it decide 
     to do so, its business activities through existing or newly formed 
     subsidiaries, or through acquisitions of or mergers with other financial 
     institutions and financial services related companies.  Although there are 
     no current arrangements, understandings or agreements, written or oral, 
     regarding any such opportunities or transactions, the Company will be in a 
     position after the Conversion, subject to regulatory limitations and the 
     Company's financial position, to take advantage of any such acquisition 
     and expansion opportunities that may arise.  The initial activities of the 
     Company are anticipated to be funded by the proceeds retained by the 
     Company and earnings thereon or, alternatively, through dividends from the 
     Association.

          To date, the Company has not engaged in any business activities other
     than those related to the Conversion.









                                       8


<PAGE>

                              Algiers Bancorp, Inc.
                                   Form 10-QSB

                          Quarter Ended March 31, 1996

                           PART II - OTHER INFORMATION

Item 1 - Legal Proceedings:
          There are no matters required to be reported under this item.

Item 2 - Changes in Securities:
          There are no matters required to be reported under this item.

Item 3 - Defaults Upon Senior Securities:
          There are no matters required to be reported under this item.

Item 4 - Submission of Matters to a Vote of Security Holders:
          On March 20, 1996, the Association executed a consent of sole 
          stockholder pursuant to which it (1) approved the division of the
          directors of the Company into three classes, as follows: The first
          class, consisting of Messrs. LeBoeuf and Humphrey, III, for a term of
          office expiring in 1999; the second class, consisting of Messrs. Gary
          and Dang, for a term of office expiring in 1998; and the third class,
          consisting of Mr. Hugh E. Humphrey, Jr., for a term of office expiring
          in 1997, or until their successors are elected and appointed; and 
          (2) ratified the appointment of LaPorte, Sehrt, Romig & Hand as the
          Company's independent public accountants for the fiscal   year ending
          December 31, 1996.

Item 5 - Other Information:

          There are no matters required to be reported under this item.

Item 6 - Exhibits and Reports on Form 8-K:
          (a)  The following exhibits are filed herewith:

               EXHIBIT NO.                DESCRIPTION

                  27.1        Financial Data Schedule

                  99.1        Financial statements for Algiers Homestead
                              Association as of March 31, 1996 and for the
                              quarter ended March 31, 1996, including
                              management's discussion and analysis of financial
                              condition and results of operations.

          (b)  Reports on Form 8-K:
                No reports on Form 8-K were filed by the Registrant during the 
                quarter ended March 31, 1996.
          


                                       9


<PAGE>

                                   SIGNATURES

     In accordance with the requirements of the Securities Exchange Act of 
1934, the Issuer, caused this report to be signed on its behalf by the 
undersigned thereunto duly authorized.


                                   ALGIERS BANCORP, INC.
                                   REGISTRANT


DATE:  JUNE 24, 1996               BY: /s/ HUGH E. HUMPHREY, JR.
                                       -----------------------------------
                                       HUGH E. HUMPHREY, JR., CHAIRMAN
                                       OF THE BOARD, PRESIDENT AND
                                       CHIEF EXECUTIVE OFFICER



DATE: JUNE 24, 1996                BY: /s/ DENNIS J. MCCLUER
                                       -----------------------------------
                                       DENNIS J. MCCLUER
                                       VICE PRESIDENT











                                      10




<TABLE> <S> <C>

<PAGE>
<ARTICLE> 9
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM EXHIBIT 99.1
FOR ALGIERS HOMESTEAD ASSOCIATION 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>                          DEC-31-1996
<PERIOD-START>                             JAN-01-1996
<PERIOD-END>                               MAR-31-1996
<CASH>                                            1625
<INT-BEARING-DEPOSITS>                            1225
<FED-FUNDS-SOLD>                                     0
<TRADING-ASSETS>                                     0
<INVESTMENTS-HELD-FOR-SALE>                       6916
<INVESTMENTS-CARRYING>                           22880
<INVESTMENTS-MARKET>                             22654
<LOANS>                                           9654
<ALLOWANCE>                                      (521)
<TOTAL-ASSETS>                                   43505
<DEPOSITS>                                       39206
<SHORT-TERM>                                         0
<LIABILITIES-OTHER>                                182
<LONG-TERM>                                          0
                                0
                                          0
<COMMON>                                             0
<OTHER-SE>                                        4117
<TOTAL-LIABILITIES-AND-EQUITY>                   43505
<INTEREST-LOAN>                                    169
<INTEREST-INVEST>                                  516
<INTEREST-OTHER>                                     7
<INTEREST-TOTAL>                                   692
<INTEREST-DEPOSIT>                                 454
<INTEREST-EXPENSE>                                 454
<INTEREST-INCOME-NET>                              238
<LOAN-LOSSES>                                        0
<SECURITIES-GAINS>                                  29
<EXPENSE-OTHER>                                    208
<INCOME-PRETAX>                                     87
<INCOME-PRE-EXTRAORDINARY>                          87
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                        57
<EPS-PRIMARY>                                        0
<EPS-DILUTED>                                        0
<YIELD-ACTUAL>                                   2.344
<LOANS-NON>                                          9
<LOANS-PAST>                                         9
<LOANS-TROUBLED>                                     0
<LOANS-PROBLEM>                                      0
<ALLOWANCE-OPEN>                                   530
<CHARGE-OFFS>                                        0
<RECOVERIES>                                         9
<ALLOWANCE-CLOSE>                                  521
<ALLOWANCE-DOMESTIC>                               521
<ALLOWANCE-FOREIGN>                                  0
<ALLOWANCE-UNALLOCATED>                              0
        

</TABLE>

<PAGE>



                                    CONTENTS

Financial Statements:

   Statements of Financial Condition - 
     March 31, 1996 (Unaudited)
     and December 31, 1995........................................ Page 2

   Statements of Income (Unaudited) -
     For the Three Months Ended March 31, 1996
     and 1995.....................................................      4

   Statement of Retained Earnings
     (Unaudited) - for the Three Months Ended
     March 31, 1996...............................................      5

   Statements of Cash Flows (Unaudited ) -
     For the Three Months Ended March 31, 1996 
     and 1995.....................................................      6

   Notes to consolidated financial Statements.....................      8

   Management's Discussion and Analysis of Financial
     Condition and Results of Operations..........................     10



<PAGE>



                          ALGIERS HOMESTEAD ASSOCIATION
                        STATEMENTS OF FINANCIAL CONDITION
                   AS OF MARCH 31, 1996 AND DECEMBER 31, 1995


                                        
                                     ASSETS
                                                       
                                                (UNAUDITED) 
                                                  MARCH 31,     DECEMBER 31,
                                                   1996            1995
                                                ------------    ------------
                                                      (IN THOUSANDS)     

Cash and Cash Equivalents                       $   1,625        $  1,452    
Investments Available-for-Sale-at
   Fair Value                                           0             697    
Investment Securities Held-to-Maturity -
   Fair Value of $ 1,204 and $ 1,204         
   at December 31, 1995 and March 31, 1996,
   respectively                                     1,225           1,225    
Loans Receivable - Net                              9,654           9,690    
Mortgage-Backed Securities - 
   Available-for-Sale at Fair Value                 6,916           7,688    
Mortgage-Backed Securities Held to Maturity        
   Fair Value $ 19,883 and $ 22,654
   at December 31, 1995 and March 31, 1996,
   respectively                                    22,880          20,461    
Stock in Federal Home Loan Bank                       436             430    
Accrued Interest Receivable                           205             229    
Real Estate Owned - Net                                45              92    
Office Properties and Equipment, at Cost -
   Furniture, Fixtures and Equipment, Less 
   Accumulated Depreciation of $ 165 and
   $ 170 at December 31, 1995 and March 
   31, 1996, respectively                              225            227     
Deferred Charges                                        80              5     
Other Assets                                             4              3    
Deferred Tax Asset                                      59             59   
Income Tax Receivable                                  151            192    
                                                ------------    ------------
      Total Assets                             $    43,505       $ 42,450   
                                                ------------    ------------
                                                ------------    ------------


 The accompanying notes are an integral part of these financial statements.


                                       2

<PAGE>

                          ALGIERS HOMESTEAD ASSOCIATION
                        STATEMENTS OF FINANCIAL CONDITION
                   AS OF MARCH 31, 1996 AND DECEMBER 31, 1995


                        LIABILITIES AND RETAINED EARNINGS          
           
                                             (UNAUDITED) 
                                               MARCH 31,     DECEMBER 31,
                                                 1996            1995
                                             ------------    ------------
                                                      (IN THOUSANDS)     

Deposits                                     $   39,206      $   38,203   
Advance Payments from Borrowers for
  Insurance and Taxes                               137             152   
Accrued Interest Payable on Depositors'                                 
  Accounts                                            7               3
Other Liabilities                                    38              52   
                                             -------------   ------------

      Total Liabilities                          39,388          38,410  
                                             -------------   ------------


Retained Earnings                                 4,134           4,077    
Unrealized Loss on Securities Available-for-
  Sale, Net of Applicable Deferred Income                            
  Tax                                               (17)            (37)  
                                             -------------   ------------

      Total Retained Earnings                     4,117           4,040     
                                             -------------   ------------
      Total Liabilities and Retained 
        Earnings                              $  43,505      $   42,450   
                                             -------------   ------------
                                             -------------   ------------

The accompanying notes are an integral part of these financial statements.


                                       3

<PAGE>


                          ALGIERS HOMESTEAD ASSOCIATION
                              STATEMENTS OF INCOME
               FOR THE THREE MONTHS ENDED MARCH 31, 1996 AND  1995


                                             (UNAUDITED)    (UNAUDITED)  
                                             THREE MONTHS   THREE MONTHS 
                                                ENDED          ENDED
                                              MARCH 31,       MARCH 31, 
                                                1996           1995     
                                             -------------  ------------
                                                    (IN THOUSANDS)     
INTEREST INCOME
  Loans                                      $      169     $      199
  Mortgage-Backed Securities                        469            401
  Investment Securities                              47             21
  Other Interest-Earning Assets                       7              6    
                                             -------------  ------------

      Total Interest Income                         692            627      
                                             -------------  ------------
INTEREST EXPENSE
  Deposits                                          454            387 
  FHLB Advances                                      -               5   
                                             -------------  ------------
    Total Interest Expense                          454            392      

NET INTEREST INCOME BEFORE
  PROVISION (CREDIT) FOR LOAN LOSSES                238            235   
PROVISION (CREDIT) FOR LOAN LOSSES                    -              8    
                                             -------------  ------------
NET INTEREST INCOME AFTER PROVISION 
(CREDIT) FOR LOAN LOSSES                            238            243     
                                             -------------  ------------

NON-INTEREST INCOME
  Service Charges and Fees                           28             20    
  Lawsuit Proceeds                                    -              
  Recapture of Allowance on GIC Bonds                                
  Gain on Sale of Investments                        29    
  Miscellaneous Income                                               4    
                                             -------------  ------------
  Total Non-Interest Income                          57             24    
                                             -------------  ------------

NON-INTEREST EXPENSES
  Compensation and Benefits                         116            109
  Occupancy and Equipment                            24             24
  Computer                                            6              6
  Deposit Insurance Premium                          25             22
  Recovery of Losses on Real Estate   
    Owned                                            -               -    
  Real Estate Owned Expense - Net                     2             10
  Other                                              35             59    
                                             -------------  ------------
  Total Non-Interest Expense                        208            230

INCOME BEFORE FEDERAL 
  INCOME TAX EXPENSE                                 87             37
   
FEDERAL INCOME TAX EXPENSE                           30             12   
                                             -------------  ------------
NET INCOME                                    $      57      $      25
                                             -------------  ------------
                                             -------------  ------------

The accompanying notes are an integral part of these financial statements.

                                       4

<PAGE>

                          ALGIERS HOMESTEAD ASSOCIATION
                         STATEMENT OF RETAINED EARNINGS
                    FOR THE THREE MONTHS ENDED MARCH 31, 1996
                                   (UNAUDITED)





Balance, Beginning of Period                                 $   4,077

Net Income                                                          57
                                                             ----------

Balance, End of Period                                       $   4,134
                                                             ----------
                                                             ----------



   The accompanying notes are an integral part of these financial statements.


                                       5
<PAGE>

                          ALGIERS HOMESTEAD ASSOCIATION
                            STATEMENTS OF CASH FLOWS               
               FOR THE THREE MONTHS ENDED MARCH 31, 1996 AND 1995


                                             (UNAUDITED)    (UNAUDITED)  
                                             THREE MONTHS   THREE MONTHS 
                                                ENDED          ENDED
                                              MARCH 31,       MARCH 31, 
                                                1996           1995     
                                             -------------  ------------
                                                    (IN THOUSANDS)     
CASH FLOWS FROM OPERATING ACTIVITIES
  Net Income                                 $     57        $       25 
   
  Adjustments to Reconcile Net Income to
   Cash Provided by Operating Activities:
    Depreciation and Amortization                   5                 3    
    Premium Amortization Net of Discount
      Accretion                                    (3)                1   
    Increase in Accrued Interest Payable            4                 1   
    Decrease in Other Liabilities                 (23)              (30)
    Decrease in Accrued Interest Receivable        24                23
    Decrease in Income Tax Payable                   -              (91)  
    Recovery of Loan Losses                                          (8)
    Recovery of Losses on Real Estate Owned        (2)               (6)
    Decrease in Other Assets                         -                3   
    Decrease in Deferred Loan Fees                (75)              (36)  
    (Increase) Decrease in Prepaid                 
      Income Taxes                                 40                (7)
    Decrease in Deferred Income Taxes               -                65   
                                             -----------     -------------
      Net Cash Provided by (Used In)
       Operating Activities                        27               (57)
                                             -----------     -------------
CASH FLOWS FROM INVESTING ACTIVITIES
    Maturities of Investment Securities - 
      Held-to-Maturity                              -                99
    Maturities of Investment Securities -
      Available-for-Sale                          700               100 
    Purchases of Mortgage Backed Securities -
      Held-to-Maturity                         (2,845)                - 
Maturities of Mortgage Backed Securities -
      Held-to-Maturity                            444               584 
Maturities of Mortgage Backed Securities -
      Available-for-Sale                          772               278   
    Principal Collected on Loans                  395               400
    Loans Made to Customers                      (349)             (267)
    Non-Cash Dividend - FHLB                       (6)               (6)  
    Purchase of Furniture and Fixtures             (3)               (2) 
    Proceeds from Sales of Foreclosed Real
      Estate                                       50                51  
                                             -----------     -------------
      Net Cash Provided by (Used In)
       Investing Activities                      (842)            1,237   
                                             -----------     -------------


The accompanying notes are an integral part of these financial statements.


                                      6

<PAGE>


                          ALGIERS HOMESTEAD ASSOCIATION
                            STATEMENTS OF CASH FLOWS               
               FOR THE THREE MONTHS ENDED MARCH 31, 1996 AND 1995

                                               (UNAUDITED)     (UNAUDITED) 
                                              THREE MONTHS    THREE MONTHS
                                                  ENDED           ENDED
                                                MARCH 31,       MARCH 31,
                                                  1996            1995 
                                             --------------  --------------
                                                    (IN THOUSANDS)     
 
CASH FLOWS FROM FINANCING ACTIVITIES
  Net Increase (Decrease) in Deposits         $   1,003        $   (854)
  Net Increase (Decrease) in Advances
   from Borrowers for Taxes and Insurance           (15)            (12)
  Repayment of Federal Home Loan Bank
   Advance                                            -            (400)
                                              -------------    -----------
      Net Cash (Used in) Financing
        Activities                                  988          (1,266)  
                                              -------------    -----------
NET INCREASE (DECREASE) IN CASH
   AND CASH EQUIVALENTS                             173             (86)

CASH AND CASH EQUIVALENTS - 
   BEGINNING OF YEAR                              1,452             501   
                                              -------------    -----------
CASH AND CASH EQUIVALENTS -                   
   END OF YEAR                                $   1,625        $    415
                                              -------------    -----------
                                              -------------    -----------


The accompanying notes are an integral part of these financial statements.


                                      7

<PAGE>

                          ALGIERS HOMESTEAD ASSOCIATION 
                          NOTES TO FINANCIAL STATEMENTS
                           QUARTER ENDED MARCH 31, 1996
                                   (UNAUDITED)

Note 1 - Basis of Presentation -
The accompanying unaudited financial statements were prepared in accordance 
with instructions for Form 10-QSB and, therefore, do not include information 
or footnotes necessary for a complete presentation of financial position, 
results of operations and cash flows in conformity with generally accepted 
accounting principles.  However, all adjustments (consisting only of normal 
recurring accruals) which, in the opinion of management, are necessary for a 
fair presentation of the financial statements have been included.

The results of operations for the three months ended March 31, 1996 are not 
necessarily indicative of the results to be expected for the year ending 
December 31, 1996.  The unaudited financial statements and notes thereto 
should be read in conjunction with the financial statements and notes thereto 
of Algiers Homestead Association contained in the Company's prospectus dated 
May 13, 1996.

The provision for income taxes is based upon the effective tax rate expected 
to be applicable for the entire fiscal year.

Note 2 - Adoption of Plan of Conversion -

On January 16, 1996, the Board of Directors of Algiers Homestead Association
adopted a Plan of Conversion ("the Plan"), which proposed the conversion of the
Association from a Louisiana chartered mutual savings and loan association to a
Louisiana chartered stock savings and loan association to be known as Algiers
Homestead Association ("the Homestead"), in its mutual or stock form, as the
sense of the reference requires) and the concurrent issuance of its capital
stock to Algiers Bancorp, Inc. ("the Holding Company"). 

The Plan provides that non-transferable subscription rights to purchase common
stock will be offered first to Eligible Account Holders of record as of the
Eligibility Record Date, then to Tax-Qualified Employee Stock Benefit Plans,
then to Supplemental Eligible Account Holders, then to Other Members, and then
to Directors, Officers and Employees.  Shares of common stock remaining unsold
after the Subscription Offering, if any, will be offered for sale to the public
through a Community Offering and/or Syndicated Community Offering, as determined
by the Board of Directors of the Holding Company and the Homestead.

Consummation of the conversion is contingent upon approval by the members of the
Homestead and the sale of a sufficient number of shares of common stock
consistent with an independent appraisal of the pro forma market value of the
common stock.  The members of the Homestead are scheduled to vote upon the Plan
at a special meeting to be held on June 27, 1996, and the subscription and
community offering closed on June 24, 1996.

The costs of issuing the common stock will be deferred and deducted from the
sale proceeds.  The Homestead had incurred $  40,852 in stock issuance costs as
of March 31, 1996.  If the conversion is not completed, these deferred costs
will be charged to operations.


                                       8

<PAGE>

The Company filed a Form SB-2 with the Securities and Exchange Commission
("SEC") on March 26, 1996, which as amended was declared effective by the SEC on
May 13, 1996.  The Company filed a Form AC with the Office of Thrift Supervision
("OTS") and the Office of Financial Institutions ("OFI") on March 26, 1996.  The
Form AC and related offering and proxy materials, as amended, were conditionally
approved by the OTS and OFI by letters dated May 13, 1996 and May 14, 1996.  The
Company also filed an Application H- (e) 1-S with the OTS and OFI on March 26,
1996, which was conditionally approved by the OTS by letter dated May 13 1996. 
The Application H- (e) 1-S is currently pending with the OFI.      


                                       9

<PAGE>


                          ALGIERS HOMESTEAD ASSOCIATION
                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS

GENERAL

The profitability of the Homestead depends primarily on its net interest income,
which is the difference between interest and dividend income on interest-earning
assets, principally mortgage-backed securities, loans and investments
securities, and interest expense on interest-bearing deposits.  Net interest
income is dependent upon the level of interest rates and the extent to which
such rates are changing.  The Homestead's profitability also is dependent, to a
lesser extent, on the level of its noninterest income, provision (credit) for
loan losses, noninterest expense and income taxes.  In each of the three months
ended March 31, 1996 and 1995, net interest income before provision (credit) for
loan losses exceeded total noninterest expense.  Total noninterest expense
consists of general, administrative and other expenses, such as compensation and
benefits, occupancy and equipment expense, federal insurance premiums, and
miscellaneous other expenses.

RESULTS OF OPERATIONS

The Homestead's net income increased by $32,000 or 128.0% in the three months 
ended March 31, 1996 from the three months ended March 31, 1995.  The 
increase was due to an increase of $9,000 or 3.9% in net interest income, an 
increase of $37,000 or 185.0% in noninterest income, and a decrease of $4,000 
or 1.9% in noninterest expense, which factors were partially offset by an 
increase of $18,000 or 150.0% in income taxes.

The increased net interest income was due to an increase in the average 
interest rate spread from 2.01% in the March 31, 1995 quarter to 2.15% in the 
March 31, 1996 quarter.  The yield on interest-earning assets increased 
faster than the average rate on deposits as the Homestead was able to control 
the rate of increase on deposits thorough discretionary pricing.  The average 
rate on deposits increased from 4.14% in the first quarter of 1995 to 4.71% 
in the first quarter of 1996, while the average yield on interest-earning 
assets increased from 6.15% to 6.86% over the same period.  The increased 
yield on assets was primarily due to higher yields on the Homestead's 
adjustable-rate mortgage loans and adjustable-rate mortgage-backed 
securities.  In addition, in the first quarter of 1996, the Homestead used a 
portion of its maturing investment securities to fund the purchase of 
mortgage-backed securities, which are higher yielding than investment 
securities.  Mortgage-backed securities increased to $29.8 millon or 68.5% of 
total assets at March 31, 1996.

Total interest income increased by $71,000 or 11.4% in the first quarter of 
1996 compared to the first quarter of 1995, due to the increase in the 
average yield. Total interest  expense increased by $62,000 or 15.8% in the 
first quarter of 1996 compared to the first quarter of 1995, primarily due to 
the increase in the average rate.  In addition, average deposits increased by 
$1.1 million or 2.9% in the first quarter of 1996 over the comparable 1995 
quarter.

The Homestead had no provision or credit for loan losses in the quarters 
ended March 31, 1996 and 1995.  Total nonperforming loans and troubled debt 
restructurings totalled $75,000 at March 31, 1996, and the allowance for loan 
losses at such date was $525,000.


                                       10

<PAGE>

The increase in total noninterest income was primarily due to a $26,000 gain on
the sale of a mortgage-backed security that was available for sale during the
first quarter of 1996.

The decrease in total noninterest expense was due to a $14,000 decrease in
professional fees and a $9,000 decrease in miscellaneous expenses, which
decreases were partially offset by increases of $13,000 in compensation and
benefits, $4,000 in deposit insurance premiums and $2,000 in occupancy expense.

The increase in income tax expense was primarily due to an increase of $50,000
or 135.1% in pre-tax income.

LIQUIDITY AND CAPITAL RESOURCES

The Homestead is required under applicable federal regulations to maintain
specified levels of "liquid" investments in qualifying types of U.S. Government,
federal agency and other investments having maturities of five years or less. 
Current OTS regulations require that a savings institution maintain liquid
assets of not less than 5 % of its average daily balance of net withdrawable
deposit accounts and borrowings payable in one year or less, of which short-term
liquid assets must consist of not less than 1 %.  At March 31, 1996, the
Homestead's liquidity was 9.2 % or $ 1.6 million in excess of the minimum OTS
requirement.

The Homestead is required to maintain regulatory capital sufficient to meet
tangible, core and risk-based capital ratios of 1.5 %, 3.0 %, and 8.0 %,
respectively.  At March 31, 1996, the Homestead's tangible and core capital both
amounted to $4.1 million or 9.50% of adjusted total assets of $43.5 million, and
the Homestead's risk-based capital amounted to $4.1 million or 36.50% of
adjusted risk-weighted assets of $11.3 million.


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