<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 September 30, 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 0-20911
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 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__X____ No ______
Shares of common stock, par value $.01 per share, outstanding as of
September 30, 1996: 648,025
Transitional Small Business Disclosure Format (check one):
Yes ______ No ___X__ .
<PAGE>
ALGIERS BANCORP, INC.
FORM 10-QSB
QUARTER ENDED SEPTEMBER 30, 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-QSB as referenced below:
Item 1 - Financial Statements
<TABLE>
<S> <C>
Consolidated Statements Of Financial Condition (Unaudited)
At September 30, 1996 and December 31, 1995..............................Page 3
Consolidated Statements Of Income (Unaudited) For the Three and
nine Months Ended September 30, 1996 and September 30, 1995.............. 5
Consolidated Statements Of Stockholders' Equity (Unaudited) For
The Nine Months Ended September 30, 1996 and 1995........................ 7
Consolidated Statements Of Cash Flows (Unaudited) For the
Nine Months Ended September 30, 1996 and 1995............................ 8
Notes to Consolidated Financial Statements.......................... 10
Item 2 - Management's Discussion and Analysis of Financial
Condition and Results of Operations.......................... 13
</TABLE>
PART II - OTHER INFORMATION
<TABLE>
<S> <C>
Item 1 - Legal Proceedings.............................................. 17
Item 2 - Changes in Securities.......................................... 17
Item 3 - Defaults Upon Senior Securities................................ 17
Item 4 - Submission of Matters to a Vote of Security-Holders............ 17
Item 5 - Other Information.............................................. 17
Item 6 - Exhibits and Reports on Form 8-K.............................. 17
Signatures............................................................. 18
</TABLE>
<PAGE>
ALGIERS BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
ASSETS
<TABLE>
<CAPTION>
September 30, December 31,
1996 1995
------------------------------
(Unaudited)
(In Thousands)
<S> <C> <C>
Cash and Cash Equivalents $ 905 $ 1,452
Investments Available-for-Sale - at Fair
Value 2,593 697
Investment Securities Held-to-Maturity - Fair
Value of $925 and $925 respectively 925 1,225
Loans Receivable - Net 9,565 9,690
Mortgage-Backed Securities - Available-for-Sale-
at Fair Value 8,631 7,688
Mortgage-Backed Securities - Held-to-Maturity -
Fair Value of $23,293 and $23,157
respectively 23,883 20,461
Stock in Federal Home Loan Bank 449 430
Accrued Interest Receivable 304 229
Real Estate Owned - Net 45 92
Office Properties and Equipment, at Cost -
Furniture, Fixtures and Equipment, Less
Accumulated Depreciation of $182 and $174
respectively 237 227
Deferred Charges 18 5
Other Assets 1 3
Deferred Tax Asset 42 59
Income Tax Receivable 91 192
------- -------
Total Assets $47,689 $42,450
======= ========
</TABLE>
The accompanying notes are an integral part of these consolidated financial
statements.
<PAGE>
ALGIERS BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
<TABLE>
<CAPTION>
September 30, December 31,
1996 1995
-----------------------------
LIABILITIES (Unaudited)
(In Thousands)
<S> <C> <C>
Deposits $ 37,380 $ 38,203
Advance Payments from Borrowers for
Insurance and Taxes 254 152
Accured Interest Payable on Depositors' Accounts 3 3
Other Liabilities 299 52
Income Tax Payable - -
---------- ----------
Total Liabilities 37,936 38,410
---------- ----------
STOCKHOLDERS' EQUITY
Stockholders' Equity
Common Stock, $.01 Par Value; Authorized
10,000,000 Shares, 648,025
Issued Shares 6 -
Paid-in Capital in Excess of Par 6,153 -
Retained Earnings 4,163 4,077
Unrealized Loss on Securities Available-for-Sale,
Net of Applicable Deferred Income Tax (51) (37)
---------- -----------
10,271 4,040
Less: Unearned ESOP Shares (518) -
---------- -----------
Total Stockholder's Equity 9,753 4,040
---------- -----------
Total Liabilities and Stockholders'
Equity $ 47,689 $ 42,450
========== =========
</TABLE>
The accompanying notes are an integral part of these consolidated financial
statements.
4
<PAGE>
ALGIERS BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
September 30, September 30, September 30, September 30,
1996 1995 1996 1995
------------- ------------- ------------- -------------
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
(In Thousands) (In Thousands)
<S> <C> <C> <C> <C>
INTEREST INCOME
Loans $ 200 $ 202 $ 578 $ 601
Mortgage-Backed
Securities 526 434 1,498 1,236
Investment
Securities 89 39 176 162
Other Interest-
Earning Assets 8 7 20 20
------ ------ ------ ------
Total Interest
Income 823 682 2,272 2,019
------ ------ ------ ------
INTEREST EXPENSE
Deposits 457 446 1,377 1,260
FHLB Advances 2 2 6
------ ------- ------ ------
Total Interest
Expense 459 446 1,379 1,266
------- ------- ------- -------
NET INTEREST INCOME
BEFORE PROVISION
FOR LOAN LOSSES 366 236 893 753
RECOVERY OF LOAN
LOSSES - - - -
------- ------- -------- ------
NET INTEREST INCOME
AFTER PROVISION
FOR LOAN LOSSES 366 236 893 753
------- ------- -------- ------
NON-INTEREST INCOME
Gain - Sale of
Investments - - 28 -
Service Charges and
Fees 24 17 54 56
Recapture of
Allowance on
GIC Bonds - - 67 -
Miscellaneous
Income - - 12 5
-------- ------- ------- --------
Total
Non-Interest
Income $ 24 $ 17 $ 161 $ 61
======= ======= ======= ======
</TABLE>
The accompanying notes are an integral part of these consolidated financial
statements.
5
<PAGE>
ALGIERS BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
September 30, September 30, September 30, September 30,
1996 1995 1996 1995
------------- ------------- ------------- -------------
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
(In Thousands) (In Thousands)
<S> <C> <C> <C> <C>
NON-INTEREST
EXPENSES
Compensation
and Benefits $ 119 $ 108 $ 349 $ 322
Occupancy and
Equipment 36 26 96 88
Computer 12 9 38 24
Deposit
Insurance
Premium 256 27 309 70
Recovery of
Provisions on
Real Estate 7
Owned (4) - (2) 11
Other 57 42 125 124
-------- ------- --------- -------
Total
Non-Interest
Expense 476 212 915 646
INCOME (LOSS)
BEFORE FEDERAL - -
INCOME TAX
EXPENSE (86) 41 139 168
- -
FEDERAL INCOME
TAX EXPENSE 1 6 53 53
-------- -------- -------- -------
NET INCOME (LOSS) $ (87) $ 35 $ 86 $ 115
======== ======== ======== =======
</TABLE>
The accompanying notes are an integral part of these consolidated financial
statements.
6
<PAGE>
ALGIERS BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1996 AND 1995
<TABLE>
<CAPTION>
SEPTEMBER 30, SEPTEMBER 30,
1996 1995
(Unaudited) (Unaudited)
<S> <C> <C>
COMMON STOCK
Balance-Beginning of period - -
Sale of common stock 6 -
---------- ------------
Balance-End of period 6 -
========== ============
PAID IN CAPITAL IN EXCESS OF PAR
Balance-Beginning of period -
Sale of common stock 6,153 -
---------- ------------
Balance-End of period 6,153 -
========== ============
RETAINED EARNINGS
Balance-Beginning of period 4,077 3,962
Net Income 86 115
Unrealized loss on Securities (51) (37)
----------- ------------
Balance-End of period 4,112 4,040
=========== ============
UNEARNED ESOP SHARES
Balance-Beginning of period - -
Balance-End of period (518) -
----------- -------------
TOTAL STOCKHOLDERS' EQUITY 9,753 4,040
=========== =============
</TABLE>
The accompanying notes are an integral part of these consolidated financial
statements.
7
<PAGE>
ALGIERS BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
Nine Months Ended
September 30, September 30,
1996 1995
------------- -------------
(Unaudited) (Unaudited)
(In Thousands)
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income $ 86 $ 115
Adjustments to Reconcile Net Income to Net
Cash Provided by Operating Activities:
Depreciation and Amortization 16 10
Premium Amortization Net of
Discount Accretion 48 21
Stock Dividend - FHLB (19) (20)
Loss on Sale of Foreclosed Real
Estate 5 -
Increase in Accrued Interest Payable - 1
Increase in Other Liabilities 247 9
Increase in Accrued Interest
Receivable (75) (1)
Increase (Decrease) in Income
Tax Payable - (92)
Provision (Recovery) of Loan Losses (4) 4
Recovery of Losses on Real Estate
Owned (6) (13)
Decrease in Other Assets 6 19
Decrease in Deferred Loan Fees (2) (20)
(Increase) Decrease in Prepaid
Income Taxes 101 (36)
Decrease in Deferred Income Taxes 17 67
(Increase) in Defered Charges (15) (46)
------- --------
Net Cash Provided by Operating
Activities 405 18
------- --------
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of Investment Securities -
Held-to-Maturity -
Maturities of Investment Securities -
Held-to-Maturity 300 99
Purchases of Investment Securities -
Available-for-Sale (2,593) -
Maturities of Investment Securities -
Available-for-Sale 697 776
Purchases of Mortgage Backed Securities -
Held-to-Maturity (5,661) (1,713)
Maturities of Mortgage Backed Securities -
Held-to-Maturity 2,245 533
Purchases of Mortgage Backed Securities -
Available-for-Sale (2,281) (597)
Maturities of Mortgage Backed Securities -
Available-for-Sale 1,270 2,216
Principal Collected on Loans 2,044 1,577
Loans Made to Customers (1,917) (1,232)
Purchase of Furniture and Fixtures (26) (21)
Proceeds from Sales of Foreclosed Real Estate 50 58
-------- ---------
Net Cash Provided by (Used In)
Investing Activities (5,872) 1,696
-------- ---------
</TABLE>
The accompanying notes are an integral part of these consolidated financial
statements.
8
<PAGE>
ALGIERS BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
Nine Months Ended
September 30, September 30,
1996 1995
------------- -------------
(Unaudited) (Unaudited)
(In Thousands)
<S> <C> <C>
CASH FLOWS FROM FINANCING ACTIVITIES
Net Increase (Decrease) in Deposits $ (823) $ (349)
Net Increase (Decrease) in Advances from
Borrowers for Taxes and Insurance 102 39
Proceeds from Federal Home Loan Bank Advance 2,250 6,350
Repayment of Federal Home Loan Bank Advance (2,250) (6,950)
Proceeds from Issuance of Common Stock 6,159 -
Loan to ESOP (518) -
-------- --------
Net Cash Provided by (Used in)
Financing Activities 4,920 (910)
-------- ---------
NET INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS (547) 804
CASH AND CASH EQUIVALENTS - BEGINNING OF YEAR 1,452 501
-------- ----------
CASH AND CASH EQUIVALENTS - END OF YEAR $ 905 $ 1,305
=======- ==========
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash Paid During the Year for:
Interest $ 1,379 $ 1,265
Income Taxes $ 30 $ 62
SUPPLEMENTAL DISCLOSURE OF NON-CASH TRANSACTIONS
Transfers from Loans to Real Estate
Acquired Through Foreclosure $ 6
Donation of Real Estate Owned $ 30
</TABLE>
The accompanying notes are an integral part of these consolidated financial
statements.
9
<PAGE>
Algiers Bancorp, Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
September 30, 1996
Note 1 - Basis of Presentation -
The accompanying consolidated financial statements for the period ended
September 30, 1996 include the accounts of Algiers Bancorp, Inc. (the
"Company") and its wholly owned subsidiary, Algiers Homestead Association (the
"Association"). Currently, the business and management of Algiers Bancorp,
Inc. is primarily the business and management of the Association. All
significant intercompany transactions and balances have been eliminated in the
consolidation.
On February 5, 1996, the Association incorporated Algiers Bancorp, Inc.,
to facilitate the conversion of the Association from mutual to stock form (the
"Conversion"). In connection with the Conversion, the Company offered its
common stock to the depositors and borrowers of the Association as of specified
dates, to an employee stock ownership plan and to members of the general
public. Upon consummation of the Conversion on July 8, 1996, all of the
Association's outstanding common stock was issued to the Company, the Company
became the holding company for the Association and the Company issued 648,025
shares of common stock.
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 Association 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 an
the OFI by letters dated May 13, 1996.
The members of the Association approved the Plan at a special meeting held
on June 27, 1996, and the subscription and community offering closed on June
24, 1996.
The Conversion is accounted for under the pooling of interests method of
accounting. In the Conversion the Company issued 648,025 share of common
stock, 51,860 shares of which were acquired by its Employee Stock Ownership
Plan, and the Association issued 1,000 shares of $.01 par value common stock to
the Company.
The accompanying consolidated 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,
<PAGE>
all adjustments (consisting only of normal recurring accruals) which, in the
opinion of management, are necessary for a fair presentation of the
consolidated financial statements have been included. The results of
operations for the three and nine months ended September 30, 1996 are not
necessarily indicative of the results to be expected for the year ending
December 31, 1996.
Note 2 - Employee Stock Ownership Plan-
The Company sponsors a leveraged employee stock ownership plan (ESOP) that
covers all employees who have at least one year of service with the Company.
The ESOP shares initially were pledged as collateral for its debt. The debt is
being repaid based on a ten-year amortization and the shares are being released
for allocation to active employees annually over the ten-year period. The
shares pledged as collateral are deducted from stockholders' equity as unearned
ESOP shares in the accompanying balance sheets.
As shares are released from collateral, the Company reports compensation
expense equal to the current market price of the shares. Dividends on
allocated ESOP shares are recorded as a reduction of retained earnings;
dividends on unallocated ESOP shares are recorded as a reduction of unearned
ESOP shares. ESOP compensation expense was $15,000 for the three months
ended September 30, 1996 based on the annual release of shares.
Note 2 - Earnings Per Share -
Earnings per share for periods prior to June 30, 1996 is not considered
meaningful as the Conversion was not completed until after June 30, 1996, and
the 100 shares held by the Association as of June 30, 1996 were canceled upon
consummation of the Conversion.
Note 3 - Special SAIF Assessment
On September 30, 1996, as part of the omnibus appropriations package signed
by President Clinton, the government mandated a special assessment to
recapitalize the Savings Association Insurance Fund ("SAIF"), which is
administered by the Federal Deposit Insurance Corporation ("FDIC"). The
one-time, special SAIF assessment amounted to $.657 for every $100 of
SAIF-insured deposits as of March 31, 1995. The FDIC notified the Association
that the Association's special assessment was $241,000, which after taxes
reduced the Company's net income by $159,000 in the quarter ended September 30,
1996. The Association's deposit premiums, which are currently $.23 for every
$100 of assessable deposits, will be reduced to $.064 for every $100 of
assessable deposits beginning January 1, 1997. Based on the Association's
deposits at September 30, 1996, the premium reduction should result in a
pre-tax cost savings of approximately $62,000 per year for the Association, or
approximately $.69 per share after taxes.
<PAGE>
Algiers Bancorp, Inc is a Louisiana corporation organized in February
1996 by the Association for the purpose of becoming a unitary holding
company of the Association. The Company purchased all of the capital stock
of the Association issued in the Conversion in exchange for 50% of the net
conversion proceeds and retained the remaining 50% of the net conversion
proceeds as its initial capitalization. Immediately following the
Conversion, the only significant assets of the Company are 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 Association. Initially, the Company will
neither own nor lease any property, but will instead use the premises,
equipment and furniture of the Association. 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
Association from time to time. Additional employees will be hired as
appropriate to the extent the Company expands or changes its business in
the future.
<PAGE>
ALGIERS BANCORP, INC. AND SUBSIDIARY
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
GENERAL
The following discussion compares the consolidated financial condition of
Algiers Bancorp, Inc. and Subsidiary at September 30, 1996 to December 31,
1995 and the results of operations for the three and nine months ended
September 30, 1996 with the same periods in 1995. Currently, the business
and management of Algiers Bancorp, Inc. is primarily the business and
management of the Association. This discussion should be read in conjunction
with the interim consolidated financial statements and footnotes included
herein.
CHANGES IN FINANCIAL CONDITION
Total assets increased $5.2 million or 12.3% from $42.5 million at
December 31, 1995 to $47.7 million at September 30, 1996. The increase in
assets Is primarily due to increases in investments and mortgage backed
securities offset by a decrease in cash and cash equivalents.
Interest-earning assets in other institutions increased from $1.9 million
at December 31, 1995 to $3.5 million at September 30, 1996 as these assets
provided a higher yield.
The mortgage-backed securities portfolio increased 15.7% from $28.1
million at December 31, 1995 to $32.5 million at September 30, 1996, as the
amount of mortgage-backed securities purchased exceeded the amount maturing.
Due to a slowing in the demand for mortgage loans in the Association's
market area the loan portfolio decreased over the past nine months. The net
loan portfolio decreased $125,000 or 1.29% from $9.7 million at December 31,
1995 to $9.6 million at September 30, 1996.
Total deposits have decreased $823,000 or 2.2% to $37.4 million at
September 30, 1996 from $38.2 million at December 31, 1996.
Total stockholders' equity increased by $5.7 million during the past
nine months. Net income of $86,000 and the proceeds from the sale of common
stock of $5.6 million increased equity during the period. Stockholder's
equity at September 30, 1996 totaled $9.7 million compared to $4.0 million at
December 31, 1995.
<PAGE>
REGULATORY CAPITAL
As of September 30, 1996, the Association's unaudited regulatory capital
requirements are as indicated in the following table:
<TABLE>
<CAPTION>
TANGIBLE CORE RISK-BASED
CAPITAL CAPITAL CAPITAL
-------- ------- ----------
<S> <C> <C> <C>
GAAP Capital $6,743 $6,743 $6,743
Nonallowable Capital - - -
Additional Capital Items:
General Valuation Allowances - - 145
------- ------- --------
Regulatory Capital Computed- 6,743 6,743 6,888
Minimum Capital Requirement 689 1,377 933
------- ------- --------
Regulatory Capital Excess $6,054 $5,366 $5,955
------- ------- --------
------- ------- --------
Regulatory Capital as a
Percentage 14.69% 14.69% 59.05%
Minimum Capital Required
as a Percentage 1.50% 3.00% 8.00%
------- ------- --------
Regulatory Capital as a
Percentage in Excess
of Requirements 13.19% 11.69% 51.05%
------- ------- --------
------- ------- --------
</TABLE>
Based on the above capital rations, the Association meets the criteria
for a "well capitalized" institution at September 30, 1996. The
Association's management believes that under the current regulations, the
Association will continue ;to meet its minimum capital requirements ;in the
foreseeable future. However, events beyond the control of the Association,
such as increased interest rates or a downturn in the economy of the
Association's area, could adversely affect future earnings and consequently,
the ability of the Association to continue to exceed its future minimum
capital requirements.
The profitability of the Company 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
investment 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 Company'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 and nine months ended September 30, 1995, net interest
income before provision
14
<PAGE>
(credit) for loan losses exceeded total noninterest expense Because of the
special SAIF assessment, total noninterest expense exceeded net interest
income in the three and nine months ended September 30, 1996. 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 Company's net income decreased by $29,000 or 25.2% in the nine months
ended September 30, 1996 from the nine months ended September 30, 1995. The
decrease was due to an increase of $269,000 or 41.6% in noninterest expense
which increase was primarily due to the $241,000 special Saif Assessment.
The increase in noninterest expense was partially offset by increases of
$140,000 or 18.6% in net interest income and $100,000 or 163.9% in total
noninterest income. Excluding the special SAIF assessment, the Company's net
income for the nine months ended September 30, 1996 would have been $245,000,
and increase of $130,000 or 113.0% from the comparable 1995 period.
The Company's net income decreased by $122,000 in the quarter ended
September 30, 1996 to a net loss of $(87,000) from net income of $35,000 in
the comparable 1995 period. The decrease was due to an increase of $264,000
or 124.5% in noninterest expense, which increase was primarily due to the
special SAIF assessment, the Company's net income for the quarter ended
September 30, 1996 would have been $245,000 or $.41 per share, an increase of
$130,000 or 113.0% from the comparable 1995 period.
The increased net interest income was due to an increase in the average
interest rate spread from 2.33% in the September 30, 1995 quarter to 2.44%
in the September 30, 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 4.28% in the third quarter of
1995 to 4.93% in the third quarter of 1996, while the average yield on
interest-earning assets increased from 6.61% to 7.37% 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 third 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 $32.5 million
or 68.2% of total assets at September 30, 1996.
For the three months ended September 30, 1996 compared to the three
months ended September 30, 1996, net income decreased $ 122,000 from
$35,000 to a loss of $ 87,000 which is primarily due to a one time increase
in Federal deposit insurance of $ 241,000.
15
<PAGE>
Total interest income increased by $141,000 20.7% in the third quarter of
1996 compared to the third quarter of 1995, due to the increase in the
average yield. Total interest expense increased by $13,000 or 2.8% in the
third quarter of 1996 compared to the third quarter of 1995, primarily due to
the increase in the average rate.
In addition, average deposits increased by $2.2 million or 5.97% in the
nine months of 1996 over the comparable 1995 period. This increase was due to
the receipt by the Homestead of funds for the stock subscription offering.
The Homestead had no provision or credit for loan losses in the quarters
ended September 30, 1996 and 1995. Total nonperforming loans totaled $9,000
at September 30, 1996, and the allowance for loan losses at such date was
$526,000.
The decrease in total noninterest expense was due to a $4,000 decrease in
provision on real estate owned, this decrease was partially offset by
increases of $ 11,000 in compensation and benefits, $ 229 in deposit
insurance premiums, $13,000 in occupancy expense and $15,000 in miscellaneous
expenses.
The decrease in income tax expense was primarily due to a decrease of $
86,000 or 309.7% in pre-tax income.
LIQUIDITY AND CAPITAL RESOURCES
The Association 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
September 30, 1996, the Association's liquidity was 12.8% or $2.1 million in
excess of the minimum OTS requirement.
The Association 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 September 30, 1996, the Association's tangible and core
capital both amounted to $6.743 million or 14.69% of adjusted total assets of
$45.914 million, and the Association's risk-based capital amounted to $6.743
million or 59.05% of adjusted risk-weighted assets of $11.664 million.
16
<PAGE>
Algiers Bancorp, Inc.
Form 10-QSB
Quarter Ended September 30, 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:
There are no matters required to be reported under this
item.
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 exhibit is filed herewith:
EXHIBIT NO. DESCRIPTION
27.1 Financial Data Schedule
(b) Reports on Form 8-K:
No reports on Form 8-K were filed by the Registrant
during the quarter ended September 30, 1996.
<PAGE>
SIGNATURES
In accordance with the requirements of the Securities Exchange Act of
1934, the registrant, caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
ALGIERS BANCORP, INC.
REGISTRANT
DATE: NOVEMBER 6, 1996 BY: /S/ HUGH E. HUMPHREY, JR.
-------------------------------
HUGH E. HUMPHREY, JR., CHAIRMAN
OF THE BOARD, PRESIDENT AND
CHIEF EXECUTIVE OFFICER
DATE: NOVEMBER 6, 1996 BY: /S/ DENNIS J. MCCLUER
-------------------------
DENNIS J. MCCLUER
VICE PRESIDENT
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 9
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> SEP-30-1996
<CASH> 905
<INT-BEARING-DEPOSITS> 0
<FED-FUNDS-SOLD> 0
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 11,224
<INVESTMENTS-CARRYING> 24,808
<INVESTMENTS-MARKET> 24,218
<LOANS> 9,565
<ALLOWANCE> 526
<TOTAL-ASSETS> 47,689
<DEPOSITS> 37,380
<SHORT-TERM> 0
<LIABILITIES-OTHER> 299
<LONG-TERM> 0
0
0
<COMMON> 6
<OTHER-SE> 9,747
<TOTAL-LIABILITIES-AND-EQUITY> 47,689
<INTEREST-LOAN> 578
<INTEREST-INVEST> 1674
<INTEREST-OTHER> 20
<INTEREST-TOTAL> 2272
<INTEREST-DEPOSIT> 1377
<INTEREST-EXPENSE> 1379
<INTEREST-INCOME-NET> 893
<LOAN-LOSSES> 0
<SECURITIES-GAINS> 28
<EXPENSE-OTHER> 915
<INCOME-PRETAX> 139
<INCOME-PRE-EXTRAORDINARY> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 86
<EPS-PRIMARY> .14
<EPS-DILUTED> .14
<YIELD-ACTUAL> 2.90
<LOANS-NON> 7
<LOANS-PAST> 0
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 526
<CHARGE-OFFS> 0
<RECOVERIES> 0
<ALLOWANCE-CLOSE> 526
<ALLOWANCE-DOMESTIC> 211
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 315
</TABLE>
