<PAGE>
U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 10-QSB
[x] Quarterly Report under Section 13 or 15(d) of the Securities
Exchange Act of 1934
For the Quarterly Period ended March 31, 1997
--------------
[ ] Transition report under Section 13 or 15(d) of the Exchange Act
For the transition period from to
----- -----
Commission file number 0-28360
-------
IBW Financial Corporation
----------------------------------------------
(Name of Small Business Issuer in its Charter)
District of Columbia 52-1943477
- --------------------------------- ------------------------------------
(State or other jurisdiction (I.R.S. Employer Identification No.)
of incorporation or organization)
4812 Georgia Avenue, NW, Washington, DC 20011
------------------------------------------------------
(Address of Principal Executive Offices) (Zip Code)
(202) 722-2000
------------------------------------------------
(Issuer's Telephone Number, Including Area Code)
N/A
---------------------------------------------------------------------------
(Former Name, Former Address, and Former Fiscal Year, If Changed Since Last
Report)
Check whether the issuer: (1) filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such
shorter period that the registrant was required to file reports), and (2) has
been subject to such filing requirements for the past 90 days. X Yes No
---- ----
State the number of shares outstanding of each of the issuer's classes of
common equity as of the latest practicable date: As of April 30, 1997, there
were 637,160 shares of the common stock $1.00 par value of IBW Financial
Corporation outstanding.
Transitional Small Business Disclosure Format (check one) Yes x No
---- ----
<PAGE>
PART I FINANCIAL INFORMATION
---------------------
ITEM 1. FINANCIAL STATEMENTS
IBW FINANCIAL CORPORATION AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
MARCH 31, 1997 AND DECEMBER 31, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
March 31, 1997 December 31, 1996
-------------- -----------------
(dollars in thousands)
<S> <C> <C>
ASSETS
Cash and cash equivalents
Cash and due from banks $ 12,690 $ 13,692
Federal funds sold 7,200 8,300
-------------- -----------------
Total cash and cash equivalents 19,890 21,992
Interest-bearing deposits in banks 3,000 3,000
Securities available-for-sale, at
fair value (amortized cost,
$108,780 and $94,298 108,768 94,824
Loans receivable, net of allowance
for loan losses of $1,546 and $1,266 107,388 108,611
Other real estate owned, net 650 1,310
Bank premises and equipment, net 2,436 2,452
Other assets 4,176 3,599
-------------- -----------------
TOTAL $246,308 $235,788
============== =================
LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES
Demand deposits $ 53,183 $ 50,840
Time and savings deposits 159,545 155,244
-------------- -----------------
Total deposits 212,728 206,084
Securities sold under repurchase agreements 14,170 10,466
Other liabilities 1,397 920
Note payable 1,000 1,000
-------------- -----------------
Total liabilities 229,295 218,470
-------------- -----------------
SHAREHOLDERS' EQUITY
Preferred stock - $1 par value; 1,000,000 authorized;
none issued
Common stock - $1 par value; 1,000,000 authorized;
637,160 shares issued and outstanding 637 637
Capital surplus 4,329 4,329
Retained earnings 12,055 12,005
Unrealized gain (loss) on available-for-sale
securities, net of taxes of ($4) and $179 (8) 347
-------------- -----------------
Total shareholders' equity 17,013 17,318
-------------- -----------------
TOTAL $246,308 $235,788
============== =================
</TABLE>
1
<PAGE>
IBW FINANCIAL CORPORATION AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME
THREE MONTHS ENDED MARCH 31, 1997 AND MARCH 31, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
Three Months Ended March 31,
---------------------------------------------
1997 1996
---------------------------------------------
(dollars in thousands, except per share data)
<S> <C> <C>
INTEREST INCOME
Interest and fees on loans $2,452 $2,240
U.S. treasury securities 317 347
Obligations of U.S. government agencies and corporations 977 865
Obligations of states and political subdivisions 216 149
Bank balances and other securities purchased
under agreements to resell 204 295
----------- ----------
Total interest income 4,166 3,896
----------- ----------
INTEREST EXPENSE
Time certificates over $100,000 175 160
Other savings and time deposits 1,076 1,178
Securities sold under repurchase agreements 141 -
Note payable 13 13
----------- ----------
Total interest expense 1,405 1,351
----------- ----------
NET INTEREST INCOME 2,761 2,545
PROVISION FOR LOAN LOSSES 425 50
----------- ----------
NET INTEREST INCOME AFTER PROVISION
FOR LOAN LOSSES 2,336 2,495
----------- ----------
NONINTEREST INCOME
Service charges on deposit and checking accounts 661 505
Gain on sale of securities - 41
Other operating income 4 29
----------- ----------
Total noninterest income 665 575
----------- ----------
NONINTEREST EXPENSE
Salaries and employee benefits 1,414 1,454
Occupancy 172 171
Furniture and equipment 167 130
Data processing 149 133
Other 771 633
----------- ----------
Total noninterest expense 2,673 2,521
----------- ----------
INCOME BEFORE INCOME TAXES 328 549
PROVISION FOR INCOME TAXES 88 176
----------- ----------
NET INCOME $ 240 $ 373
=========== ==========
NET INCOME PER COMMON SHARE $0.38 $0.59
=========== ==========
</TABLE>
2
<PAGE>
IBW FINANCIAL CORPORATION AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS
THREE MONTHS ENDED MARCH 31, 1997 AND 1996
(UNAUDITED)
<TABLE>
<CAPTION>
Three Months Ended March 31
---------------------------
1997 1996
---------------------------
(dollars in thousands)
<S> <C> <C>
OPERATING ACTIVITIES
Net income $ 240 $ 373
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 162 76
Amortization of premiums 221 145
Loss on sale of other real estate owned 12 -
(Gain) on sale of securities available-for-sale - (41)
Provision for losses on other real estate owned 33 -
Provision for loan losses 425 50
Decrease (increase) in other assets (645) 201
Increase in accrued expenses and other liabilities 287 128
------------ ------------
Net cash provided by operating activities 735 932
------------ ------------
INVESTING ACTIVITIES
Net (increase) decrease in loans 839 (788)
Additions to bank premises and equipment (91) (93)
Net proceeds on sale of other real estate owned 615 -
Proceeds from sale of securities available-for-sale - 8,040
Proceeds from maturities of securities available-for-sale 2,000 11,632
Purchase of securities available-for-sale (18,679) (24,697)
Principal collected on securities available-for-sale 2,131 1,163
------------ ------------
Net cash used in investing activities (13,185) (4,743)
------------ ------------
FINANCING ACTIVITIES
Net increase in deposits 6,644 3,546
Net increase in securities sold under repurchase agreements 3,704 99
------------ ------------
Net cash provided by financing activities 10,348 3,645
------------ ------------
DECREASE IN CASH AND CASH EQUIVALENTS (2,102) (166)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 21,992 34,886
------------ ------------
CASH AND CASH EQUIVALENTS, END OF PERIOD $ 19,890 $ 34,720
============ ============
Supplemental disclosures of cash flow information
Cash paid during the year for
Interest $ 1,343 $ 1,300
Taxes $ 110 $ 176
</TABLE>
3
<PAGE>
IBW FINANCIAL CORPORATION AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Note A BASIS OF PRESENTATION
The accompanying unaudited consolidated financial statements of IBW Financial
Corporation and Subsidiary (the Company) have been prepared in accordance with
generally accepted accounting principles for interim financial information and
with the instructions to Form 10-QSB. Accordingly, they do not include all the
information and footnotes required for complete financial statements. In the
opinion of management, all adjustments and reclassifications consistently, of a
normal and recurring nature, considered necessary for a fair presentation have
been included. Operating results for the three month period ended March 31,
1997, are not necessarily indicative of the results that may be expected for the
year ended December 31, 1997. The unaudited consolidated financial statements
should be read in conjunction with the consolidated financial statements and
footnotes.
Note B ACCOUNTING CHANGES
Effective January 1,1997, the Company adopted Statement of Financial Accounting
Standards ("SFAS") No. 125, Accounting for Transfers and Servicing of Financial
Assets and Extinguishment of Liabilities, except for the provisions that were
delayed by SFAS No. 127, Deferral of the Effective Date of Certain Provisions of
Certain Provisions of FASB Statement No. 125, an Amendment of FASB Statement No.
125. The adoption of this new accounting standard did not have a material
impact on the financial statements of the Company.
Note C NEW ACCOUNTING PRONOUNCEMENT
In March 1997, the Financial Accounting standards Board issued SFAS No. 128,
Earnings Per Share ("EPS"), which simplifies the standards for computing EPS
previously found in Accounting Board Principals Opinion No. 15, Earnings Per
Share. SFAS No. 128 is effective for financial statements issued for periods
ending after December 15, 1997. If SFAS No. 128 had been effective for the
three months ended March 31, 1997 and 1996, earnings per share would have been
presented as follows:
Three Months Ended March 31,
1997 1996
----- -----
Net income per common share $0.38 $0.59
4
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION
AS OF AND FOR THE THREE MONTHS ENDED MARCH 31, 1997 (DOLLARS IN THOUSANDS)
Forward looking statements. This discussion contains forward looking
statements within the meaning of the Securities Exchange Act of 1934, as
amended, including statements of goals, intentions, and expectations as to
future trends, plans, events or results of Company operations and policies and
regarding general economic conditions. These statements are based upon current
and anticipated economic conditions, nationally and in the Company's market,
interest rates and interest rate policy, competitive factors and other
conditions which, by their nature, are not susceptible to accurate forecast, and
are subject to significant uncertainty. Because of these uncertainties and the
assumptions on which this discussion and the forward looking statements are
based, actual future operations and results in the future may differ materially
from those indicated herein. Readers are cautioned against placing undue
reliance on any such forward looking statement. The Company does not undertake
to update any forward looking statement to reflect occurrences or events which
may not have been anticipated as of the date of such statements.
Overview
IBW Financial Corporation's net income for the first quarter of 1997
totaled $240, a decrease of $133, or 35.7% from the comparable period of 1996.
This decrease is primarily attributed to an increase of $375 in the provision
for loan losses, an increase of $152 in noninterest expenses, offset by an
increase in net interest income of $216 and an increase of $90 in noninterest
income. Return on average assets (ROAA), and return on average shareholder's
equity (ROAE) through the first quarters of 1997 and 1996 were .40% and 5.61%,
.66% and 9.27%, respectively.
NET INTEREST INCOME
Net interest income increased $216, or 8.5% over 1996 comparable period.
Interest on loans increased by $212, or 9.5%, reflecting higher levels of loans.
Interest on securities increased $149, or 10.9%, reflecting higher levels of
mortgage backed securities, and obligations of states and political
subdivisions, and lower levels of U.S. Treasury securities. Interest on federal
funds sold and other declined $120, or 43.2%, from the 1996 comparable period.
Interest expense increased $54, or 4%, attributed primarily to a higher volume
of repurchase agreements which were initiated late in the first quarter of 1996.
Interest expense related to deposits declined $87, while interest expense
related to repurchase agreements increased $141. On a tax-equivalent basis, net
interest income for the three months ended March 31, 1997 increased $249, or
9.5%, over the comparable period in 1996. The increase was primarily
attributable to an increase in average interest-earning assets, an increase in
the net interest spread and partially offset by an increase in average interest-
bearing liabilities. Average interest-earning assets increased by $12.9
million, or 6.2%, comprised principally of growth in loans of $15.2 million and
nontaxable securities of $4.4 million, partially offset by a decrease in the
level of federal funds sold of $9.5 million.
The interest rate spread increased 5.7% from 4.23% for March 1996 to 4.47%
for March 1997. This increase is primarily attributed to an increase in the
average rate earned on interest-earning assets, except for loans, and a general
decrease in the rate paid for interest-bearing liabilities, partially offset by
the decrease in the average rate on loans.
Interest-bearing liabilities increased $9.1 million, or 5.7%, due to an
increase in time deposits and borrowings, partially offset by a decrease in
interest-bearing demand and savings deposits. Borrowings (comprised of
repurchase agreements and the note payable) increased $12.7 million.
5
<PAGE>
PROVISION FOR LOAN LOSSES
The Company maintains an allowance for loan losses to absorb losses on
existing loans and commitments that may become uncollectible. The provision for
loan losses increased $375 in the first quarter of 1997, to $425, from $50 for
the three months ended March 31, 1996. The increase in the provision for loan
losses is attributable primarily to the increase in nonaccrual loans of $538 to
$2.5 million from $2.0 million at year-end 1996. The increase in nonaccrual
loans primarily results from four one-to-four family residential mortgage loans
having an aggregate balance of $483. Overall nonperforming assets decreased
$419 thousand during the first quarter 1997 compared to year-end 1996 due
principally to the disposal of a large OREO with a net carrying cost of $460.
NONINTEREST INCOME
Noninterest income increased $90, or 15.6%, to $665 for March 1997 compared
to $575 for March 1996. The increase is attributed to service charges on
deposit and checking accounts which increased $156. There were no security
gains during the first quarter of 1997 compared to securities gains of $41
during the first quarter of 1996.
NONINTEREST EXPENSE
Noninterest expense for the first quarter of 1997 increased $152, or 6%,
over comparable period of 1996. This increase is attributed primarily to an
increase of $138 in other expenses, an increase of $37 in furniture and
equipment expenses, and an increase of $16 in data processing costs, partially
offset by a $40 decrease in salaries and benefits. The increase in other
expenses were principally attributed to an increase of $64 in professional
service fees, an increase of $46 in other real estate owned related expenses,
and an increase of $44 in postage, stationery, and advertising expenses. These
other expenses were offset partially by a decrease in FDIC assessment expenses
of $48 during the first quarter of 1997. The decrease in salaries and benefits
was attributed largely to the reduction in pension cost of $63 compared to the
first quarter of 1996, resulting from the planned termination of the Company's
defined benefit pension plan. The company subsequently implemented a 401(k)
plan during the second quarter of 1997.
PROVISION FOR INCOME TAXES
The provision for income taxes for the first quarter of 1997 decreased $88
to $88, or 50%, from the comparable period of 1996, due primarily to lower
earnings and an increase in tax-exempt income.
FINANCIAL OVERVIEW
Total assets increased $10.5 million, or 4.5%, from December 31, 1996 to
March 31, 1997, mainly due to an increase in securities of $13.9 million,
partially offset by a decrease in cash and cash equivalents of $2.1 million,
loans of $1.2 million, and other real estate owned of $660. The increase in
assets was primarily funded by deposit growth of $6.6 million and repurchase
agreements growth of $3.7 million. Total shareholders' equity decreased $305
due primarily to the decrease in the unrealized gain (loss) on available-for-
sale securities going from a gain of $347 at year-end 1996 to a loss of $8 at
March 31, 1997. Retained earnings increased $50 as $190 in dividends were
declared during the first quarter of 1997.
The carrying value of the Company's securities portfolio increased 14.7%
from $94.8 million at December 31, 1996 to $108.7 million at March 31, 1997.
This growth was centered specifically in mortgage-backed securities as these
type of securities have increased from $50.4 million to $64.3 million. The
mortgage-backed securities portfolio had a weighted-average remaining maturity
of 3.19 years at March 31, 1997 compared to 2.73 years at December 31, 1996.
The collateral underlying all the mortgage-backed securities is guaranteed by
one of the "Quasi-Governmental" agencies, and therefore maintains a risk weight
of 20% for risk-based capital purposes. Management's analysis of mortgage-
related securities includes, but is not limited to, the average lives,
seasonality,
6
<PAGE>
coupon and historic behavior (including prepayment history) of each particular
security over its life, as affected by various interest rate environments.
Stress tests are performed on each security on a quarterly basis as part of
management's ongoing analysis. There are no issuers of securities held by the
Company the securities of which have a book value in excess of 10% of
shareholders' equity.
The allowance for loan losses was $1.5 million at March 31, 1997 compared
to $1.3 million at December 31, 1996. The increase in the level of the
allowance for loan losses as a percentage of ending loans reflects the increase
in nonaccrual loans. The ratio of allowance for possible loan losses to total
loans increased to 1.42% at March 31, 1997 from 1.15% at year-end 1996. At
March 31, 1997, non-performing assets to total assets decreased to 1.69%
compared to 1.94 % at December 31, 1996.
7
<PAGE>
AVERAGE BALANCES AND NET INTEREST INCOME ANALYSIS/(1)/
<TABLE>
<CAPTION>
Three Months Ended Three Months Ended Year Ended
March 31, 1997 March 31, 1996 December 31, 1996
------------------------------------------------------------------------------------------
Amount Amount Amount
Average Average Paid or Average Average Paid or Average Average Paid or
Balance Rate Earned Balance Rate Earned Balance Rate Earned
------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
(dollars in thousands)
ASSETS
Loans, net $107,407 9.26% $2,452 $ 92,176 9.75% $2,240 $ 99,879 9.41% $ 9,401
Taxable securities 83,341 6.29% 1,293 83,523 5.90% 1,228 86,305 6.06% 5,232
Non-taxable securities/(2)/ 15,982 8.30% 327 11,562 7.84% 226 12,747 8.31% 1,059
Federal funds sold 11,529 5.56% 158 21,013 5.31% 278 11,279 5.51% 622
Interest-bearing deposits held 3,000 6.35% 47 95 4.22% 1 1,661 6.44% 107
------------------------------------------------------------------------------------------
Total interest-earning assets 221,259 7.84% 4,277 208,369 7.65% 3,973 211,871 7.75% 16,421
Cash and due from banks 11,484 11,367 10,841
Bank premises and
equipment, net 2,464 2,385 2,424
Other assets 5,258 4,693 5,423
-------- -------- --------
Total assets $240,465 $226,814 $230,559
======== ======== ========
LIABILITIES AND
SHAREHOLDERS' EQUITY
Interest-bearing demand deposits $ 29,307 1.98% $ 142 $ 30,875 2.40% $ 185 $ 30,718 2.10% 644
Savings deposits 68,336 2.76% 465 75,733 3.00% 566 72,856 2.87% 2,087
Time deposits 58,018 4.50% 644 52,623 4.47% 587 55,548 4.44% 2,468
------------------------------------------------------------------------------------------
Total interest-bearing deposits 155,661 3.26% 1,251 159,231 3.41% 1,338 159,122 3.27% 5,199
Borrowed funds 1,000 5.27% 13 1,000 5.21% 13 1,000 5.30% 53
Repurchase agreements 12,695 4.50% 141 30 5.35% - 3,376 4.53% 153
------------------------------------------------------------------------------------------
Total interest-bearing deposits 169,356 3.37% 1,405 160,261 3.42% 1,351 163,498 3.31% 5,405
Noninterest-bearing liabilities 52,117 49,024 48,930
Other liabilities 1,878 1,439 1,841
Shareholders' equity 17,114 16,090 16,290
-------- -------- --------
Total liabilities and
shareholders' equity $240,465 $226,814 $230,559
======== ======== ========
NET INTEREST INCOME AND NET
YIELD ON INTEREST-EARNING ASSETS
Net interest income $2,871 $2,622 $11,016
======= ======== ========
Interest rate spread 4.47% 4.23% 4.44%
Net yield on average interest-
earning assets 5.26% 5.05% 5.20%
Average interest-earning assets 129.58%
to average interest-bearing
liabilities 130.65% 130.02%
</TABLE>
(1) Yields on securities have been computed based upon the historical cost of
such securities. Nonaccruing loans are included in average balances.
(2) Yields on non-taxable securities are presented on a tax-equivalent basis
using a 34% tax rate. Interest income and net interest income reported in
the Company's consolidated statements of income were $4,166 and $2,761 for
March 31, 1997, $3,896 and $1,351 for March 31, 1996 and $16,061 and
$10,656 for 1996.
8
<PAGE>
LOAN LOSS AND RECOVERY EXPERIENCE
<TABLE>
<CAPTION>
-------------------------------------
Three Months Ended Year Ended
March 31, 1997 December 31,1996
-------------------------------------
(dollars in thousands)
<S> <C> <C>
Total outstanding loans at year end $109,059 $110,242
Average amount of loans outstanding 108,550 100,950
Allowance for loan losses
at beginning of year 1,266 1,177
Loans charged off:
Commercial 78 637
Real estate mortgage 34 52
Installment loans to individuals 52 69
--------------------------------------
Total charge-offs 164 758
--------------------------------------
Recoveries of loans previously charged-off:
Commercial 17 286
Real estate mortgage - 25
Installment loans to individuals 2 26
--------------------------------------
Total recoveries 19 337
--------------------------------------
Net charge-offs 145 421
Additions to allowance charged to
operations 425 510
--------------------------------------
Allowance for loan losses at end of year $ 1,546 $ 1,266
======================================
Ratio of net charge-offs during year
to average outstanding loans during year 0.53% 0.42%
Ratio of allowance for possible loan
losses at year end to total loans 1.42% 1.15%
</TABLE>
ALLOCATION OF ALLOWANCE FOR LOAN LOSSES
<TABLE>
<CAPTION>
March 31, 1997 Percent December 31, 1996 Percent
----------------------------------------------------
<S> <C> <C> <C> <C>
(dollars in thousands)
Commercial $1,351 87.39% $1,075 84.91%
Real estate mortgage/(1)/ 110 7.12% 89 7.03%
Consumer 65 4.20% 92 7.27%
Unallocated 20 1.29% 10 0.79%
----------------------------------------------------
Total $1,546 100.00% $1,266 100.00%
====================================================
</TABLE>
The level of the allowance for loan losses is determined by management on
the basis of various assumptions and judgements. These include levels and trends
of past due and non-accrual loans, trends in volume and changes in terms,
effects of policy changes, experience and depth of management, anticipated
economic conditions in the Washington, DC metropolitan area, concentrations of
credit, the composition of the loan portfolio, prior loan loss experience, and
the ongoing and periodic reviews of the loan portfolio by the Company's internal
and external loan review function. For impaired loans, the Company establishes
reserves in accordance with SFAS 114 and SFAS 118, and for non-impaired loans
uses an allocation approach which relies on historical loan loss experience,
adjusted to reflect current conditions and trends.
9
<PAGE>
Although management believes that it uses the best information available to
make such determinations that the allowance for loan losses is adequate as of
the dates shown, future adjustments to the allowance may be necessary, and net
income could be significantly affected, if circumstances and/or economic
conditions differ substantially from the assumptions used in making the initial
determinations. Any downturn in the real estate market or general economic
conditions in the Washington, DC metropolitan area could result in the Company
experiencing increased levels of non-performing assets and charge-offs,
significant provisions for loan losses, and significant reductions in net
income. Additionally, various regulatory agencies periodically review the
Company's allowance for loan losses. Such agencies may require the recognition
of additions to the allowance based on their judgments of information available
to them at the time of their examination. In light of the foregoing, there can
be no assurance that management's determinations as to the future adequacy of
the allowance for loan losses will prove accurate, or that additional provisions
or charge-offs will not be required.
The following table sets forth information concerning non-performing
assets.
NON-PERFORMING ASSETS
<TABLE>
<CAPTION>
March 31, 1997 December 31, 1996
----------------------------------
<S> <C> <C>
(dollars in thousands)
Non-accrual loans/(1)/ $2,544 $2,006
Loans past due 90 days or more
and still accruing 970 1,267
Foreclosed properties 650 1,310
------ ------
Total $4,164 $4,583
==================================
Non-performing assets to gross loans 3.80% 4.11%
and foreclosed properties at period
end
Non-performing assets to total 1.69% 1.94%
assets at period end
</TABLE>
1. Loans are placed on non-accrual status when in the opinion of management
the collection of additional interest is unlikely or a specific loan meets
the criteria for non-accrual status established by regulatory authorities.
No interest is taken into income on non-accrual loans unless received in
cash. A loan remains on non-accrual status until the loan is current to
both principal and interest and the borrower demonstrates the ability to
pay and remain current, or the loan becomes well secured and is in the
process of collection. The gross interest income that would have been
recorded in the three months ended March 31, 1997 and the year ended
December 31, 1996 for non-accrual loans at March 31, 1997 and December 31,
1996 had the loans been current in accordance with their original terms was
$62 and $101, respectively.
2. The Bank charges loans against the allowance for loan losses when it
determines that principal and interest or portions thereof become
uncollectible. This is determined through an analysis of each individual
credit, including the financial condition and repayment capacity of the
borrower, and of the sufficiency of the collateral, if any.
At March 31, 1997, there were $7,273 of loans not reflected in the table
above, where known information about possible credit problems of borrowers
caused management to have doubts as to the ability of the borrower to comply
with present loan repayment terms and that may result in disclosure of such
loans in the future. Included in the total are twenty-three loans, totalling
$5,061 fully collateralized by real estate, four of which represent $3,280 of
the total. The remaining $2,212 consists of twenty-three commercial loans, none
in excess of $500, secured primarily by accounts receivable and various business
equipment.
10
<PAGE>
PART II OTHER INFORMATION
-----------------
ITEM 1 LEGAL PROCEEDINGS
None.
ITEM 2 CHANGES IN SECURITIES
None.
ITEM 3 DEFAULTS UPON SENIOR SECURITIES
None.
ITEM 4 SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
None.
ITEM 5. OTHER INFORMATION
None.
ITEM 6 EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
(11) Statement Regarding Computation of Per Share Earnings
(27) Financial Data Schedule
(b) Reports on Form 8-K
None.
11
<PAGE>
SIGNATURES
In accordance with the requirements of the Exchange Act, the registrant
caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.
IBW FINANCIAL CORPORATION
May 13, 1997 /s/ B. Doyle Mitchell, Jr.
-- ---------------------------------
B. Doyle Mitchell, Jr., President
May 13, 1997 /s/ Thomas A Wilson
-- ------------------------------------------
Thomas A. Wilson, Senior Vice President
and Chief Financial and Accounting Officer
12
<PAGE>
EXHIBIT INDEX
Exhibit No. Description
- ----------- -----------
11 Statement regarding Computation of Per Share Earnings
27 Financial Data Schedule
13
<PAGE>
Exhibit 11
STATEMENT OF COMPUTATION OF PER SHARE EARNINGS
<TABLE>
<CAPTION>
Three Months Ended March 31,
----------------------------
1997 1996
----------------------------
<S> <C> <C>
Earnings per common share
Primary $ 0.38 $ 0.59
Average shares outstanding 637,160 637,160
Fully diluted $ 0.38 $ 0.59
Average shares outstanding 637,160 637,160
</TABLE>
14
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 9
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FORM-10QSB 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-31-1997
<PERIOD-END> MAR-31-1997
<CASH> 12,690
<INT-BEARING-DEPOSITS> 3,000
<FED-FUNDS-SOLD> 7,200
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 108,768
<INVESTMENTS-CARRYING> 0
<INVESTMENTS-MARKET> 0
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<TOTAL-ASSETS> 246,308
<DEPOSITS> 212,728
<SHORT-TERM> 14,170
<LIABILITIES-OTHER> 1,397
<LONG-TERM> 1,000
0
0
<COMMON> 637
<OTHER-SE> 16,376
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<INTEREST-LOAN> 2,452
<INTEREST-INVEST> 1,510
<INTEREST-OTHER> 204
<INTEREST-TOTAL> 4,166
<INTEREST-DEPOSIT> 1,251
<INTEREST-EXPENSE> 1,405
<INTEREST-INCOME-NET> 2,761
<LOAN-LOSSES> 425
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 2,673
<INCOME-PRETAX> 328
<INCOME-PRE-EXTRAORDINARY> 328
<EXTRAORDINARY> 0
<CHANGES> 0
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<EPS-PRIMARY> 0.38
<EPS-DILUTED> 0.38
<YIELD-ACTUAL> 5.26
<LOANS-NON> 2,544
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<ALLOWANCE-CLOSE> 1,546
<ALLOWANCE-DOMESTIC> 1,546
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 20
</TABLE>
