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, 1998
[ ] 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 April 8,
1998: 584,842
Transitional Small Business Disclosure Format (check one): Yes [ ] No [ X ]
<PAGE>
Algiers Bancorp, Inc.
Form 10-QSB
Quarter Ended March 31, 1998
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
Consolidated Statements Of Financial Condition (Unaudited)
At March 31, 1998 and December 31, 1997................................ Page 3
Consolidated Statements Of Income (Unaudited) For the Three
Months Ended March 31, 1998 and 1997................................... 5
Consolidated Statements Of Cash Flows (Unaudited) For the
Three Months Ended March 31, 1998 and 1997............................... 7
Notes to Consolidated Financial Statements............................... 9
Item 2 - Management's Discussion and Analysis of Financial Condition and
Results of Operations.................................................... 11
PART II - OTHER INFORMATION
Item 1 - Legal Proceedings............................................... 14
Item 2 - Changes in Securities........................................... 14
Item 3 - Defaults Upon Senior Securities................................. 14
Item 4 - Submission of Matters to a Vote of Security-Holders............. 14
Item 5 - Other Information............................................... 14
Item 6 - Exhibits and Reports on Form 8-K................................ 14
Signatures............................................................... 15
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<PAGE>
<TABLE>
<CAPTION>
ALGIERS BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
ASSETS
March 31, December 31,
1998 1997
---------- ------------
(Unaudited)
(In Thousands)
<S> <C> <C>
Cash and Cash Equivalents ................................ $ 842 $ 482
Interest-Bearing Deposits in Other Banks ................. 2,065 2,073
Investments Available-for-Sale - at Fair Value ........... 5,633 4,087
Loans Receivable - Net ................................... 9,736 9,198
Mortgage-Backed Securities - Available-for-Sale -
at Fair Value ................................ 5,970 6,615
Mortgage-Backed Securities - Held-to-Maturity - Fair Value
of $20,832 and $21,580, respectively ......... 21,003 21,830
Stock in Federal Home Loan Bank .......................... 490 483
Accrued Interest Receivable .............................. 269 269
Real Estate Owned - Net .................................. 63 --
Office Properties and Equipment, at Cost - Furniture,
Fixtures and Equipment, Less Accumulated
Depreciation of $215 and $212, respectively 264 253
Investment in Subsidiary ................................. 18 --
Accounts Receivable ...................................... 92 --
Deferred Charges ......................................... 50 19
Other Assets ............................................. 60 3
------- -------
Total Assets ........... $46,555 $45,312
======= =======
</TABLE>
The accompanying notes are an integral part of these consolidated financial
statements.
-3-
<PAGE>
<TABLE>
<CAPTION>
ALGIERS BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
March 31, December 31,
1998 1997
---------- ------------
LIABILITIES (Unaudited)
(In Thousands)
<S> <C> <C>
Deposits ............................................... $ 36,787 $ 35,534
Advance Payments from Borrowers for
Insurance and Taxes ................................ 71 112
Accured Interest Payable on Depositors' Accounts ....... 3 1
Dividends Payable ...................................... 31 31
Deferred Tax Liability ................................. 20 28
Income Taxes Payable ................................... 42 17
Other Liabilities ...................................... 147 53
-------- --------
Total Liabilities ........................... 37,101 35,776
-------- --------
STOCKHOLDERS' EQUITY
Stockholders' Equity
Common Stock, $.01 Par Value; Authorized
10,000,000 Shares, 648,025 Issued Shares ...... 6 6
Treasury Stock, 32,401 shares , at cost ............ (570) (472)
Paid-in Capital in Excess of Par ................... 6,129 6,122
Retained Earnings ...................................... 4,319 4,299
Unrealized Gain (Loss) on Securities Available-for-Sale,
Net of Applicable Deferred Income Tax .............. (12) 14
-------- --------
9,872 9,969
Less: Unearned ESOP Shares .................. (418) (433)
-------- --------
Total Stockholders' Equity .................. 9,454 9,536
-------- --------
Total Liabilities and Stockholders' Equity .. $ 46,555 $ 45,312
======== ========
</TABLE>
The accompanying notes are an integral part of these consolidated financial
statements.
-4-
<PAGE>
<TABLE>
<CAPTION>
ALGIERS BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
Three Months Ended
March 31, March 31,
1998 1997
---- ----
(Unaudited) (Unaudited)
(In Thousands)
<S> <C> <C>
INTEREST INCOME
Loans ............................................ $228 $190
Mortgage-Backed Securities ....................... 431 523
Investment Securities ............................ 94 71
Other Interest-Earning Assets .................... 39 27
---- ----
Total Interest Income ..................... 792 811
---- ----
INTEREST EXPENSE
Deposits ......................................... 429 427
FHLB Advances .................................... -- 13
---- ----
Total Interest Expense .................... 429 440
---- ----
NET INTEREST INCOME BEFORE
PROVISION FOR LOAN LOSSES ...................... 363 371
PROVISION FOR LOAN LOSSES ............................ -- --
---- ----
NET INTEREST INCOME AFTER
PROVISION FOR LOAN LOSSES ........................ 363 371
---- ----
NON-INTEREST INCOME
Gain - Sale of Investments ....................... 15 1
Service Charges and Fees ......................... 14 17
Recapture of Allowance on GIC Bonds .............. -- 20
Miscellaneous Income ............................. 3 3
---- ----
Total Non-Interest Income ................. 32 41
---- ----
</TABLE>
(Continued on Following Page)
The accompanying notes are an integral part of these consolidated financial
statements.
-5-
<PAGE>
<TABLE>
<CAPTION>
ALGIERS BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
Three Months Ended
March 31, March 31,
1998 1997
---- ----
(Unaudited) (Unaudited)
(In Thousands) (In Thousands)
<S> <C> <C>
NON-INTEREST EXPENSES
Compensation and Benefits ....................... $ 163 $ 186
Occupancy and Equipment ......................... 48 44
Computer ........................................ 18 11
Deposit Insurance Premium ....................... 6 1
Professional Services ........................... 28 37
FHLB Service Charges ............................ 9 5
Real Estate Owned Expenses ...................... 1 1
(Recovery of) Provision for Losses on
Real Estate Owned ............................ (4) --
Other ........................................... 49 28
----- -----
Total Non-Interest Expense ................... 318 313
----- -----
INCOME BEFORE FEDERAL
INCOME TAX EXPENSE .............................. 77 99
FEDERAL INCOME TAX EXPENSE ......................... 26 37
----- -----
NET INCOME ......................................... 51 62
OTHER COMPREHENSIVE INCOME-
NET OF INCOME TAX
Unrealized Gains (Losses) on Securities ......... (26) (33)
----- -----
COMPREHENSIVE INCOME ............................... $ 25 $ 29
===== =====
EARNINGS PER SHARE
Basic ........................................... $0.09 $0.10
===== =====
Fully Diluted ................................... $0.09 $0.10
===== =====
</TABLE>
The accompanying notes are an integral part of these consolidated financial
statements.
-6-
<PAGE>
<TABLE>
<CAPTION>
ALGIERS BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
Three Months Ended
March 31, March 31,
1998 1997
------- -------
(Unaudited) (Unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES (In Thousands)
<S> <C> <C>
Net Income .......................................................... $ 51 $ 62
Adjustments to Reconcile Net Income to Net
Cash Provided by Operating Activities:
Depreciation and Amortization ................................ 5 6
Premium Amortization Net of Discount Accretion ............... 13 (21)
Stock Dividend - FHLB ........................................ (7) (6)
Gain on Sale of Investments .................................. (15) (1)
ESOP Expense ................................................. 22 18
Increase in Accrued Interest Payable ......................... 2 3
Increase in Other Liabilities ............................... 94 4
Decrease (Increase) in Accrued Interest Receivable ........... -- (21)
Increase in Income Tax Payable ............................... 25 --
Recapture of Provsiion for Real Estate Owned ................. (4) --
(Increase) in Real Estate Owned .............................. (63) --
(Increase) Decrease in Other Assets .......................... (57) 4
(Increase) in Deferred Loan Fees ............................ (18) --
(Increase) in Deferred Charges .............................. (31) (13)
(Increase) in Accounts Receivable ............................ (92)
Decrease in Prepaid Income Taxes ............................. -- 9
Decrease in Deferred Income Taxes ............................ -- 57
------- -------
Net Cash (Used In) Provided by Operating Activities ....... (75) 101
------- -------
CASH FLOWS FROM INVESTING ACTIVITIES
Maturities of Investment Securities - Held-to-Maturity .............. -- 625
Purchase of Investment Securities - Available-for-Sale .............. (2,950) --
Maturities of Investment Securities - Available-for-Sale ............ 1,404 325
Purchases of Mortgage- Backed Securities - Held-to-Maturity ......... -- (184)
Maturities of Mortgage- Backed Securities - Held-to-Maturity ........ 814 536
Purchases of Mortgage- Backed Securities - Available-for-Sale ....... -- (489)
Maturities of Mortgage-Backed Securities - Available-for-Sale ....... 225 302
Proceeds from Sale of Mortgage Backed Securities - Available-for-Sale 401 --
Principal Collected on Loans ........................................ 254 398
Loans Made to Customers ............................................. (774) (359)
Purchase of Furniture and Fixtures .................................. (16) (17)
Proceeds from Sales of Foreclosed Real Estate ....................... 4 --
(Increase) in Investment in Subsidiary .............................. (18) --
------- -------
Net Cash Provided by (Used In) Investing Activities ....... (656) 1,137
------- -------
</TABLE>
The accompanying notes are an integral part of these consolidated financial
statements.
-7-
<PAGE>
<TABLE>
<CAPTION>
ALGIERS BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
Three Months Ended
March 31, March 31,
1998 1997
------- --------
(Unaudited) (Unaudited)
(In Thousands)
<S> <C> <C>
CASH FLOWS FROM FINANCING ACTIVITIES
Net Increase (Decrease) in Deposits ....................................... $ 1,253 $ (498)
Net Increase (Decrease) in Advances from
Borrowers for Taxes and Insurance ..................................... (41) (92)
Repayment of Federal Home Loan Advance .................................... -- (500)
Purchase of Treasury Stock ................................................ (98) --
Dividends Paid on Common Stock ............................................ (31) (32)
------- -------
Net Cash Provided by (Used in) Financing Activities ............ 1,083 (1,122)
------- -------
NET INCREASE IN CASH AND CASH EQUIVALENTS ..................................... 352 116
CASH AND CASH EQUIVALENTS - BEGINNING OF YEAR ................................. 2,555 1,722
------- -------
CASH AND CASH EQUIVALENTS - END OF YEAR ....................................... $ 2,907 $ 1,838
======= =======
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash Paid During the Year for:
Interest .............................................................. $ 138 $ 116
Income Taxes .......................................................... $ 92 $ 21
SUPPLEMENTAL DISCLOSURE OF NON-CASH TRANSACTIONS
Dividends Declared .................................................... $ 31 $ 31
</TABLE>
The accompanying notes are an integral part of these consolidated financial
statements.
-8-
<PAGE>
Algiers Bancorp, Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
March 31, 1998
Note 1 - Basis of Presentation -
The accompanying consolidated financial statements for the three months
ended March 31, 1998 include the accounts of Algiers Bancorp, Inc. (the
"Company"), its wholly owned subsidiary, Algiers Homestead Association (the
"Association") and its 51% owned subsidiary, Algiers.Com, Inc., L.L.C. ("ACI").
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. ACI owns a
51% interest in Planet Mortgage, Inc., L.L.C. that is engaged in the formation
of an Internet site for the solicitation of mortgage loans and the sale of
advertising space to real estate related companies on its Internet site. No
income or expense for the activities of ACI are reflected in the financial
statements included herewith.
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 Conversion was accounted for under the pooling of interests
method of accounting.
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, 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 months ended March 31,
1998 are not necessarily indicative of the results to be expected for the year
ending December 31, 1998.
<PAGE>
Note 2-Available for Sale Securities-
Investments and mortgage-backed securities available-for-sale at March
31,1998 are summarized as follows (in thousands):
<TABLE>
<CAPTION>
March 31,1998
----------------------------------------------
Gross Gross
Amortized Unrealized Unrealized Fair
Cost Gains Losses Value
<S> <C> <C> <C> <C>
Investments ................ $5,640 $ -- $ 7 $5,633
====== ====== ====== ======
GNMA Certificates .......... $ 460 $ 9 $ 1 $ 468
FNMA Certificates .......... 4,389 81 36 4,434
FHLMC Certificates ......... 1,075 10 17 1,068
------ ------ ------ ------
$5,924 $ 100 $ 54 $5,970
====== ====== ====== ======
</TABLE>
-9-
<PAGE>
Note 3 - 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 the ESOP 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 Consolidated Statements of Financial
Condition.
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 $22,000 for the three months ended
March 31, 1998 based on the annual release of shares.
-10-
<PAGE>
ALGIERS BANCORP, INC. AND SUBSIDIARIES
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 Subsidiaries at March 31, 1998 to December 31, 1997
and the results of operations for the three months ended March 31, 1998 with the
same period in 1997. 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.
This quarterly report includes statements that may constitute
forward-looking statements, usually containing the words "believe," "estimate,"
"project," "expect," "intend" or similar expressions. These statements are made
pursuant to the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995. Forward-looking statements inherently involve risks and
uncertainties that could cause actual results to differ materially from those
reflected in the forward-looking statements. Factors that could cause future
results to vary from current expectations include, but are not limited to, the
following: changes in economic conditions (both generally and more specifically
in the markets in which the Company operates); changes in interest rates,
deposit flows, loan demand, real estate values and competition; changes in
accounting principles, policies or guidelines and in government legislation and
regulation (which change from time to time and over which the Company has no
control); and other risks detailed in this quarterly report and in the Company's
other public filings. Readers are cautioned not to place undue reliance on these
forward-looking statements, which reflect management's analysis only as of the
date hereof. The Company undertakes no obligation to publicly revise these
forward-looking statements to reflect events or circumstances that arise after
the date hereof.
Changes in Financial Condition
Total assets increased $1.3 million or 2.9% from $45.3 million at
December 31, 1997 to $46.6 million at March 31, 1998. The increase in assets is
primarily due to an increase in deposits, loans and investment securities.
Interest-earning deposits in other banks and investments was $6.2
million at December 31, 1997 and $7.7 million at March 31, 1998. These assets
currently provide a higher yield than mortgage-backed securities and have
shorter maturities.
The mortgage-backed securities portfolio decreased $1.4 million or 4.9%
from $28.4 million at December 31, 1997 to $27.0 million at March 31, 1998, as
the amount of mortgage-backed securities maturing and sold exceeded the amount
purchased. Mortgage-backed securities amounted to $27.0 million or 58.0% of
total assets at March 31, 1998, compared to $28.4 million or 62.7% of total
assets at December 31, 1997.
Due to an increase in the demand for single-family mortgage loans in
the Association's market area, the loan portfolio increased over the past three
months from $9.2 million at December 31, 1997 to $9.7 million at March 31, 1998.
<PAGE>
Total deposits increased $1.3 million or 3.7% to $36.8 million at March
31, 1998 from $35.5 million at December 31, 1997.
Total stockholders' equity declined slightly during the past three
months. Net income of $51,000, a $7,000 increase in additional paid-in capital
and a $26,000 increase in the reserve for unrealized loss on securities
available-for-sale increased equity during the period, but these items were
offset by a $31,000 dividend paid, a $31,000 dividend declared on common stock
and the purchase of $98,000 of treasury stock. Stockholders' equity at March 31,
1998 totaled $9.45 million compared to $9.54 million at December 31, 1997.
Results of Operations
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 and
borrowings. 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 non-interest income,
provision for loan losses, non-interest expense and income taxes. In each of the
three months ended March 31, 1998 and 1997, net interest income before provision
for loan losses was more than total non-interest expense. Total non-interest
expense consists of general, administrative and other expenses, such as
compensation and benefits, occupancy and equipment expense, federal insurance
premiums, and miscellaneous other expenses.
-11-
<PAGE>
The Company's net income decreased by $11,000 or 17.7% in the three
months ended March 31, 1998 from the three months ended March 31, 1997. The
decrease was due to a decrease of $8,000 or 2.2% in net interest income, a
decrease of $9,000 or 22.0% in non-interest income, and an increase of $5,000 or
1.6% in non-interest expense which factors were partially offset by a decrease
of $11,000 or 29.7% in income tax expense.
Total interest income decreased by $19,000 or 2.3% during the three
months ending March 31, 1998 compared to the three months ending March 31, 1997,
due to a $1.6 million or 3.6% decrease in average interest-earning assets. The
decrease in the average balance was primarily due the pay off of a $1.0 million
advance from the Federal Home Loan Bank, a reduction in the Association's
deposit accounts of $650,000, the Company's repurchase of $334,000 of common
stock since the first quarter of 1997 and the payment of dividends on common
stock of $126,000, partially offset by an increase in the average yield on
interest-earning assets from 7.32% in the first quarter of 1997 to 7.36% in the
first quarter of 1998. Total interest expense decreased by $11,000 or 2.5% in
the three months ending March 31, 1998 compared to the three months ending March
31, 1997, primarily due to decreases in FHLB advances of $500,000 and in average
deposits of $361,000 or .10% in the first three months of 1998 over the
comparable 1997 period. In addition, the average rate on interest-bearing
liabilities increased to 4.76% from 4.68% over the same period.
The decreased net interest income of $8,000 was due to a decrease of
$3.0 million or 6.8% in net average interest-earning assets in the three months
ending March 31, 1998 over the comparable 1997 period and, to a lesser extent, a
decrease in the average interest rate spread from 2.64% in the three months
ending March 31, 1997 to 2.60% in the three months ending March 31, 1998. The
decreased yield on assets was primarily due to a decrease of $3.0 million in
average interest-earning assets. In the three months ending March 31, 1998, the
Company used a portion of its maturing mortgage-backed securities and
interest-earning deposits in other banks to fund the repurchase of its
outstanding common stock for $334,000. The average rate on deposits decreased
from 4.68% during the first three months of 1997 to 4.76% during the first three
months of 1998.
The Association had no provision or credit for loan losses in the
three months ended March 31, 1998 and 1997. Total non-performing loans at March
31, 1998 was $629,000 compared to $636,000 at December 31, 1997, and the
allowance for loan losses at March 31, 1998 was $505,000 compared to $485,000 at
December 31, 1997 due to a reduction in the specific reserve for real estate
owned.
The decrease in non-interest income in the three months ended March 31,
1998 was due to a decrease of $20,000 in recapture of allowance on GIC bonds and
a decrease of $3,000 in service charges and fees, offset by an increase of
$14,000 in gain on sale of investments.
The $5,000 increase in total non-interest expense in the three months
ended March 31, 1998 was due to a $21,000 increase in other operating expenses,
a $7,000 increase in computer expenses, a $5,000 increase in deposit insurance
premiums, a $4,000 increase in occupancy and equipment expense, and a $4,000
increase in FHLB service charges, partially offset by a $23,000 decrease in
compensation expense, a $9,000 decrease in professional services, and a $4,000
recovery of provision for losses on real estate owned.
The $11,000 or 3.0% decrease in income tax expense was primarily due to
a decrease of $22,000 or 22.2% in pre-tax income for the three months ended
March 31, 1998 from the comparable 1997 quarter.
<PAGE>
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 4% 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,
1998, the Association's liquidity was 19.9% or $5.6 million in excess of the
minimum OTS requirement of 4%.
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 March 31, 1998, the Association's tangible and core capital
both amounted to $7.3 million or 16.24% of adjusted total assets of $44.7
million, and the Association's risk-based capital amounted to $7.4 million or
53.19% of adjusted risk-weighted assets of $12.1 million.
-12-
<PAGE>
As of March 31, 1998, the Association's unaudited regulatory capital
requirements are as indicated in the following table:
<TABLE>
<CAPTION>
TANGIBLE CORE RISK-BASED
CAPITAL CAPITAL CAPITAL
------- ------- -------
(Dollars in Thousands)
<S> <C> <C> <C>
GAAP Capital ......................... $7,260 $7,260 $7,260
Additional Capital Items:
General Valuation Allowances ....... -- -- 149
------ ------ ------
Regulatory Capital ................... 7,260 7,260 7,409
Minimum Capital Requirement .......... 671 1,788 969
------ ------ ------
Regulatory Capital Excess ............ $6,589 $5,472 $6,440
====== ====== ======
Regulatory Capital as a
Percentage ......................... 16.24% 16.24% 61.19%
Minimum Capital Required
as a Percentage .................... 1.50% 3.00% 8.00%
------ ------ ------
Regulatory Capital as a
Percentage in Excess
of Requirements .................. 14.74% 13.24% 53.19%
====== ====== ======
</TABLE>
Based on the above capital ratios, the Association meets the criteria
for a "well capitalized" institution at March 31, 1998. 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.
The Year 2000
The Company is currently addressing the computer and data processing
issues relating to the Year 2000. Management has completed the assessment phase
and certain hardware and software, which is not Year 2000 compliant, have been
identified which will have to be replaced at a cost of approximately $15,000. In
addition, the Association's on-line data processor will be changed before the
end of the current year, the cost of which will be approximately $20,000 for
additional training . It is Management's opinion that issues related to the Year
2000 are not likely to have a material adverse effect on the Company's
liquidity, capital resources or results of operations.
<PAGE>
Common Stock Repurchase Plan
On March 12, 1997, the Company received permission from the Office of
Thrift Supervision ("OTS") to repurchase up to 32,401 shares or 5.0% of the
Company's common stock. Pursuant to the plan, the Company purchased 29,901
shares of its common stock on April 1, 1997 and 2,500 shares of its common stock
on May 7, 1997. These two purchases have fulfilled the number of shares approved
by the OTS.
On October 15, 1997, the Company received permission from the OTS to
repurchase up to 30,781 shares or 5.0% of the Company's outstanding common
stock. Several purchases of the Company's common stock were made and the 5%
repurchase was completed on April 3, 1998. The Company has 584,842 shares of
common stock outstanding as of April 8, 1998.
-13-
<PAGE>
Algiers Bancorp, Inc.
Form 10-QSB
Quarter Ended March 31, 1998
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 March 31, 1998.
-14-
<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: May 12, 1998 By:/s/Hugh E. Humphrey, Jr.
------------------------
Hugh E. Humphrey, Jr., Chairman
of the Board, President and
Chief Executive Officer
Date: May 12, 1998 By:/s/Dennis J. McCluer
--------------------
Dennis J. McCluer
Vice President
Date: May 12, 1998 By:/s/Francis Minor, Jr.
---------------------
Francis Minor, Jr.
Chief Financial Officer
-15-
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