<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OF 15 (d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 1997
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OF 15 (d) OF THE
SECURITIES EXCHANGE AT OF 1934
For the transition period from__________to_______________
Commission File Number 0-21165
FIRST ALLEN PARISH BANCORP, INC.
------------------------------------------------------
(Exact name of Registrant as specified in its Charter)
Delaware 72-1331593
- ------------------------------ -----------------------
(State or other jurisdiction of (I.R.S.Employer
incorporation or organization) Identification Number)
222 South Tenth Street - Oakdale, Louisiana 71463
- ------------------------------------------- ----------
(Address of principal executive offices) (zip code)
Registrant's telephone number, including area code: (318)335-2031
Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by section 13 of 15 (d) of the
Securities Exchange Act of 1934 during the preceding 12 months
(or for such shorter period that the registrant was required to
file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
YES (X) NO ( )
Indicate the number of shares outstanding of each of the issuer's
common stock as of the latest practicable date.
Class Outstanding at September 30, 1997
- --------------------------- ---------------------------------
Common Stock, .01 par value 264,506
<PAGE> 2
FIRST ALLEN PARISH BANCORP, INC.
TABLE OF CONTENTS
<TABLE>
<CAPTION>
Page
<S> <C>
Part I - FINANCIAL INFORMATION
Item 1: Financial Statements
Consolidated statements of financial condition 3
Consolidated statements of income 4-5
Consolidated statements of cash flows 6-9
Notes to consolidated financial statements 10-11
Item 2: Management's Discussion and Analysis of
Financial Condition and Results of Operations 12-17
Part II - OTHER INFORMATION 18
Signatures 19
</TABLE>
<PAGE> 3
FIRST ALLEN PARISH BANCORP, INC. AND SUBSIDIARY
Consolidated Statements of Financial Condition
September 30, 1997 and December 31, 1996
<TABLE>
<CAPTION>
September 30, 1997
(Unaudited) December 31, 1996
------------------ -----------------
<S> <C> <C>
ASSETS
Cash and cash equivalents
Interest-bearing $ 1,972,501 $ 847,896
Non-interest bearing 582,306 626,409
Mortgage-backed and related securities -
held-to-maturity 11,976,886 13,238,771
Mortgage-backed and related securities -
available-for-sale, estimated market
value 4,657,563 3,946,564
Loans receivable, net 13,063,451 11,937,990
Accrued interest receivable 217,407 206,457
Other receivables 68,125 42,800
Foreclosed real estate 108,101 74,856
Federal Home Loan Bank stock, at cost 259,300 259,200
Premises and equipment, at cost, less
accumulated depreciation 271,621 282,353
Other assets 50,661 26,574
Total assets $33,227,922 $31,489,870
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES
Deposits $28,400,825 $25,749,999
Advances from Federal Home Loan Bank - 1,200,000
Advances by borrowers for taxes
and insurance 21,298 31,854
Federal income taxes:
Current 65,743 2,843
Deferred 129,575 122,265
Accrued liabilities 44,624
Dividends Payable 36,231
Deferred income 17,726 18,818
Total liabilities 28,671,398 27,170,403
---------- ----------
STOCKHOLDERS' EQUITY
Serial preferred stock (.01 par value,
100,000 shares authorized, none
issued or outstanding) - -
Common stock (.01 par value, 900,000
shares authorized, 264,506 shares
issued and outstanding) 2,645 2,645
Additional paid-in capital 2,308,776 2,298,842
Retained earnings (substantially
restricted) 2,436,536 2,230,294
Unrealized gain on securities
available-for-sale (2,963) (6,004)
Unearned employee stock ownership
plan (188,470) (206,310)
Total stockholders' equity 4,556,524 4,319,467
--------- ---------
Total liabilities and stockholders'
equity $33,227,922 $31,489,870
=========== ===========
See accompanying notes to consolidated financial statements.
/TABLE
<PAGE>
<PAGE> 4
FIRST ALLEN PARISH BANCORP, INC. AND SUBSIDIARY
Consolidated Statements of Income
For the three months ended September 30, 1997 and 1996
(Unaudited)
<TABLE>
<CAPTION>
1997 1996
--------- ---------
<S> <C> <C)
INTEREST INCOME
Loans receivable:
First mortgage loans $ 234,623 $201,015
Consumer and other loans 64,002 52,261
Mortgage-backed and related securities 266,153 242,513
Other interest earning assets 23,232 27,259
-------- --------
Total interest income 588,010 523,048
-------- --------
INTEREST EXPENSE
Deposits 313,049 280,641
Borrowed funds 4,135 1,540
------- -------
Total interest expense 317,184 282,181
------- -------
Net interest income 270,826 240,867
PROVISION (RECOVERY) LOAN LOSSES (1,336) (1,722)
------- ------
Net interest income after recovery from
loan losses 272,162 242,589
------- -------
NONINTEREST INCOME
Service charges on deposits 49,082 52,401
Insurance commissions earned 4,450 4,122
Loan origination and servicing fees 9,705 6,880
Net other real estate expenses (958) (1,583)
Gain on foreclosed real estate (92) 3,300
Other operating revenues 6,634 4,044
------- -------
Total noninterest income 68,821 69,164
------- -------
NONINTEREST EXPENSES
Compensation and employee benefits 111,758 110,236
Occupancy and equipment expenses 14,780 13,638
SAIF deposit insurance premiums 4,279 185,554
Stationery and printing 10,572 14,398
Data processing 14,276 10,799
Other expenses 57,405 34,529
------- -------
Total noninterest expenses 213,070 369,154
------- -------
Income before income taxes 127,913 (57,401)
INCOME TAX EXPENSE 44,814 (21,320)
------- -------
NET INCOME $83,099 ($36,081)
======== ========
Net earnings per common share:
Primary and fully diluted $0.34 ($0.15)
Weighted average number of shares outstanding======== =========
Primary and fully diluted 244,463 243,346
/TABLE
<PAGE>
<PAGE> 5
FIRST ALLEN PARISH BANCORP, INC. AND SUBSIDIARY
Consolidated Statements of Income
For the nine months ended September 30, 1997 and 1996
(Unaudited)
<TABLE>
<CAPTION>
1997 1996
--------- ---------
<S> <C> <C>
INTEREST INCOME
Loans receivable:
First mortgage loans $670,938 $626,619
Consumer and other loans 185,598 148,974
Mortgage-backed and related securities 794,165 721,846
Other interest earning assets 71,233 78,066
--------- ---------
Total interest income 1,721,934 1,575,505
--------- ---------
INTEREST EXPENSE
Deposits 893,032 866,547
Borrowed funds 23,868 1,540
--------- ---------
Total interest expense 916,900 868,087
--------- ---------
Net interest income 805,034 707,418
PROVISION (RECOVERY) LOAN LOSSES (2,760) (11,183)
--------- ---------
Net interest income after recovery from
loan losses 807,794 718,601
--------- ---------
NONINTEREST INCOME
Service charges on deposits 143,150 151,191
Insurance commissions earned 7,419 8,538
Loan origination and servicing fees 27,767 20,377
Net other real estate expenses (1,321) (1,834)
Gain on foreclosed real estate 109 3,386
Other operating revenues 19,328 13,302
--------- ---------
Total noninterest income 196,452 194,960
--------- ---------
NONINTEREST EXPENSES
Compensation and employee benefits 313,859 292,290
Occupancy and equipment expenses 49,099 42,516
SAIF deposit insurance premiums 12,749 216,185
Stationery and printing 37,957 41,685
Data processing 43,787 43,789
Other expenses 172,177 125,020
--------- ---------
Total noninterest expenses 629,628 761,485
--------- ---------
Income before income taxes 374,618 152,076
INCOME TAX EXPENSE 128,700 52,000
--------- ---------
NET INCOME $ 245,918 $ 100,076
========= =========
Net earnings per common share:
Primary and fully diluted $1.01 $0.21
Weighted average number of shares
outstanding ========= =========
Primary and fully diluted 244,463 243,346
/TABLE
<PAGE>
<PAGE> 6
FIRST ALLEN PARISH BANCORP, INC. AND SUBSIDIARY
Consolidated Statements of Cash Flows
For the three months ended September 30, 1997 and 1996
(Unaudited)
<TABLE>
<CAPTION>
1997 1996
------------ -------------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss) $ 83,099 ($36,081)
--------- ---------
Adjustments to reconcile net income to
net cash provided by operating activities:
Depreciation of premises and
equipment 8,963 7,463
Provision for loan losses (1,336) (1,722)
Loss on sale of foreclosed real estate 92 (3,300)
Premium amortization net of discount
accretion 41,294 29,756
Deferred income taxes 1,890 -
Stock dividend on FHLB Stock (3,923) -
Changes in assets and liabilities
(Increase) decrease in accrued
interest receivable (11,933) 7,588
(Increase) decrease in other
assets (41,907) (37,044)
Decrease in advance payable, Federal
Home Loan Bank - -
Increase in accrued liabilities 17,958 177,044
Increase (decrease) in current
income taxes payable 23,476 (5,619)
Increase (decrease) in deferred
income (630) 1,182
--------- ---------
Total adjustments 117,758 175,348
--------- ---------
Net cash provided by
operating activities 200,857 139,267
--------- ---------
CASH FLOWS FROM INVESTING ACTIVITIES
Net increase in mortgage-backed
and related securities (31,300) (818,706)
Sale of investment securities 3,823 -
Purchase of investment securities - -
Net decrease in loans made to customers(2,602) (55,686)
Proceeds from sale of foreclosed real
estate - 30,764
Purchase of property and equipment (4,544) -
--------- ---------
Net cash provided (used) by
investing activities (34,623) (843,628)
--------- ---------
(continued)
See accompanying notes to consolidated financial statements.
</TABLE> <PAGE>
<PAGE> 7
FIRST ALLEN PARISH BANCORP, INC. AND SUBSIDIARY
Consolidated Statements of Cash Flows (continued)
For the three months ended September 30, 1997 and 1996
(Unaudited)
<TABLE>
<CAPTION>
1997 1996
------------- ------------
<S> <C> <C>
CASH FLOWS FROM FINANCING ACTIVITIES
Net increase(decrease) in demand deposits, NOW
accounts, passbook savings accounts,
and certificates of deposits 154,516 (898,264)
Net decrease in advances by
borrowers for taxes and insurance (8,974) (8,894)
Issuance of common stock 2,161,328
---------- ----------
Net cash provided by
financing activities 145,542 1,254,170
Net increase in cash and
cash equivalents 311,776 549,809
CASH AND CASH EQUIVALENTS, beginning
of period 2,243,031 2,430,042
---------- ----------
CASH AND CASH EQUIVALENTS,
end of period $2,554,807 $2,979,851
========== ==========
Supplemental Disclosures
Cash paid for:
Interest on deposits, advances, and other
borrowings $ 292,445 $ 282,181
Income taxes 80,742 27,300
Transfers from loans to real estate acquired
through foreclosure 33,345 61,348
Proceeds from sales of foreclosed real estate
financed through loans - 30,000
Change in unrealized gain (loss) on securities
available for sale 3,652 632
See accompanying notes to consolidated financial statements.
</TABLE>
<PAGE> 8
FIRST ALLEN PARISH BANCORP, INC. AND SUBSIDIARY
Consolidated Statements of Cash Flows
For the nine months ended September 30, 1997 and 1996
(Unaudited)
<TABLE>
<CAPTION>
1997 1996
--------- ---------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net income $ 245,918 $ 100,076
Adjustments to reconcile net income to
net cash provided by operating activities:
Depreciation of premises and
equipment 26,888 25,610
Provision for loan losses (2,760) (11,183)
Gain onsale of foreclosed
real estate (109) (3,386)
Premium amortization net of discount
accretion 43,909 42,360
Deferred income taxes 7,310 13,101
Stock dividend on FHLB Stock (11,400) -
Changes in assets and liabilities
(Increase) decrease in accrued
interest receivable (10,950) 10,272
Increase in other assets (24,087) (166,433)
Decrease in advance payable, Federal
Home Loan Bank (1,200,000) -
Increase (decrease) in accrued
liabilities (8,393) 188,045
Increase in current
income taxes payable 62,900 -
Increase (decrease) in deferred
income (1,092) 1,411
--------- ---------
Total adjustments (1,117,784) (99,797)
Net cash provided by (used)
operating activities (871,866) 199,873
--------- ---------
CASH FLOWS FROM INVESTING ACTIVITIES
Net decrease (increase) in mortgage-backed
and related securities 262,963 (691,632)
Sale of investment securities 11,200 400
Purchase of investment securities - -
Net increase in loans made to
customers (945,910) (105,928)
Proceeds from sale of foreclosed real
estate - 30,850
Purchase of property and equipment (16,155) (7,751)
--------- ---------
Net cash provided (used) by
investing activities (687,902) (774,061)
--------- ---------
(continued)
See accompanying notes to consolidated financial statements.
</TABLE> <PAGE>
<PAGE> 9
FIRST ALLEN PARISH BANCORP, INC. AND SUBSIDIARY
Consolidated Statements of Cash Flows (continued)
For the nine months ended September 30, 1997 and 1996
(Unaudited)
<TABLE>
<CAPTION>
1997 1996
--------- ---------
<S> <C> <C>
CASH FLOWS FROM FINANCING ACTIVITIES
Net increase in demand deposits, NOW
accounts, passbook savings accounts,
and certificates of deposits 2,650,826 46,645
Net decrease in advances by
borrowers for taxes and insurance (10,556) (16,529)
Issuance of common stock 2,161,328
Net cash provided by
financing activities 2,640,270 2,191,444
--------- ---------
Net increase in cash and
cash equivalents 1,080,502 1,617,256
CASH AND CASH EQUIVALENTS,
beginning of period 1,474,305 1,362,595
--------- ---------
CASH AND CASH EQUIVALENTS,
end of period $2,554,807 $2,979,851
========== ==========
Supplemental Disclosures
Cash paid for:
Interest on deposits, advances, and other
borrowings $ 892,161 $ 868,087
Income taxes 121,391 79,794
Transfers from loans to real estate
acquired through foreclosure 33,245 61,348
Proceeds from sales of foreclosed real
estate financed through loans - 30,000
Change in unrealized gain (loss) on securities
available for sale 3,041 (6,871)
See accompanying notes to consolidated financial statements.
</TABLE>
<PAGE> 10
FIRST ALLEN PARISH BANCORP, INC. AND SUBSIDIARY
Notes to Consolidated Financial Statements
(Unaudited)
(1) First Allen Parish Bancorp, Inc.
--------------------------------
First Allen Parish Bancorp, Inc. (the "Corporation")
was incorporated under the laws of the State of Delaware for
the purpose of becoming the savings and loan holding company
of First Federal Savings and Loan Association of Allen
Parish (the Association"), in connection with the
Association's conversion from a federally chartered mutual
savings association to a federally chartered stock savings
association, pursuant to its Plan of Conversion. On August
9, 1996, the Corporation commenced a Subscription and
Community Offering of its shares in connection with the
conversion of the Association (the "Offering"). The
Offering was consummated and the Corporation acquired the
Association on September 27, 1996. It should be noted that
the Corporation had no assets prior to the conversion and
acquisition on September 27, 1996.
The accompanying consolidated financial statements as
of and for the three months ended and nine months ended
September 30, 1997, include the accounts of the Corporation
and the Association.
(2) Employee Stock Ownership Plan (ESOP)
------------------------------------
All employees meeting age and service requirements are
eligible to participate in an ESOP established on
January 1, 1996. Contributions made by the Association
to the ESOP are allocated to participants by a formula
based on compensation. Participant benefits become 100
percent vested after five years. The ESOP purchased 21,160
shares in the Association's conversions.
(3) Basis of Preparation
--------------------
The accompanying unaudited consolidated financial
statements were prepared in accordance with instructions for
Form 10-Q. To the extent that information and footnotes
required by generally accepted accounting principles for
complete financial statements are contained in the audited
financial statements included in the Association's audit
report for the year ended December 31, 1996, such
information and footnotes have not been duplicated herein.
In the opinion of management, all adjustments, consisting
only of normal recurring accruals, which are necessary for
the fair presentation of the interim financial statements
have been included. The statements of earnings for the
three month and nine month periods ended September 30, 1997
are not necessarily indicative of the results which may be
expected for the entire year.
<PAGE> 11
FIRST ALLEN PARISH BANCORP, INC. AND SUBSIDIARY
Notes to Consolidated Financial Statements (Continued)
(Unaudited)
(4) Earnings Per Share
------------------
On September 27, 1996, 264,506 shares of the
Corporation's stock were issued, including 21,160 shares
issued to the ESOP. Earnings per share amounts for the three
month period and nine month period ended September 30, 1997
are based upon an average of 244,463 shares. The shares
issued to the Employee Stock Ownership Plan (ESOP) are not
included in this computation until they are allocated to
plan participants.
(5) Stockholders' Equity and Stock Conversion
-----------------------------------------
The Association converted from a federally chartered
mutual savings association to a federally chartered stock
savings association pursuant to its Plan of Conversion which
was approved by the Association's members on September 18,
1996. The conversion was effective on September 27, 1996
and resulted in the issuance of 264,506 shares of common
stock (par value $0.01) at $10 per share for a gross sales
price of $2,645,060. Costs related to conversion (primarily
underwriters' commissions, printing, and professional fees)
approximated $272,131 and were deducted to arrive at the net
proceeds of $2,372,929. The Corporation established an
employee stock ownership trust which purchased 21,160 shares
of common stock of the Corporation at the issuance price of
$10 per share with funds borrowed from the holding company.
<PAGE> 12
FIRST ALLEN PARISH BANCORP, INC. AND SUBSIDIARY
Management's Discussion and Analysis
of Financial Condition and Results of Operations
General
- -------
First Allen Parish Bancorp, Inc. (the "Corporation") was
incorporated under the laws of the state of Delaware to become a
savings and loan holding company with First Federal Savings and
Loan Association of Allen Parish (the "Association") of Oakdale,
Louisiana, as its subsidiary. The Corporation was incorporated
at the direction of the Board of Directors of the Association,
and on September 27, 1996, acquired all of the capital stock of
the Association upon its conversion from mutual to stock form
(the "conversion"). Prior to the conversion, the Corporation did
not engage in any material operations and at September 30, 1996,
had no significant assets other than the investment in the
capital stock of the Association, the First Allen Parish Bancorp
loan to the employee stock ownership plan (ESOP), representing a
portion of the net proceeds from the conversion retained at the
holding company level and investments in mortgage backed
securities.
First Federal Savings and Loan Association of Allen Parish
was originally founded in 1962 as a federally chartered mutual
savings and loan association located in Oakdale, Louisiana. On
September 18, 1996, the Association members voted to convert the
Association to a federal stock institution. The Association
conducts its business through its main office in Oakdale,
Louisiana and a Loan Production Office(LPO) located in Oberlin,
Louisiana. Deposits are insured by the Savings Association
Insurance Fund (SAIF) to the maximum allowable.
The Association has been, and intends to continue to be, a
community-oriented financial institution offering selected
financial services to meet the needs of the communities it
serves. The Association attracts deposits from the general
public and historically has used such deposits, together with
other funds, to originate loans secured by real estate, including
one- to four-family residential mortgage loans, commercial real
estate loans, land loans, construction loans and loans secured by
other properties. The Association also originates consumer and
other loans consisting primarily of loans secured by automobiles,
manufactured homes, loans secured by deposits (share loans) and
lines of credit.
The most significant outside factors influencing the
operations of the Association and other financial institutions
include general economic conditions, competition in the local
market place and the related monetary and fiscal policies of
agencies that regulate financial institutions. More
specifically, the cost of funds primarily consisting of
insured deposits is influenced by interest rates on competing
investments and general market rates of interest, while lending
activities are influenced by the demand for real estate financing
and other types of loans, which in turn is affected by the
interest rates at which such loans may be offered and other
factors affecting loan demand and funds availability.
<PAGE> 13
Deposits of the Association are currently insured by the
SAIF of the FDIC. The FDIC also maintains another insurance
fund, the Bank Insurance Fund, which primarily insures commercial
bank deposits. Applicable law requires that both the SAIF and
BIF funds be recapitalized to a ratio of 1.25% of reserves to
deposits, and the FDIC announced that the BIF reached the
required reserve ratio during May 1995. The SAIF, however, was
not expected to achieve that reserve ratio before 2002. Due to
the disparity in reserve ratios, on November 14, 1995, the FDIC
reduced annual assessments for BIF-insured institutions to the
legal minimum of $2,000 while SAIF-insured institutions continued
to pay assessments based on a schedule of from $0.23 to $.031 per
$100 of deposits.
In September 1996, Congress enacted legislation to
recapitalize the SAIF by a one-time assessment on all
SAIF-insured deposits held as of March 31, 1995. The assessment
was 65.7 basis points per $100 in deposits, payable by November
30, 1996. For the Association, the assessment resulted in a
one-time charge to earnings during the three months ended
September 30, 1996 in the amount of $170,020 or ($112,213 when
adjusted for taxes), based on the Association's deposits on March
31, 1995 of $25,878,177. In addition, beginning January 1,
1997, pursuant to the legislation, interest payments on bonds
("FICO Bonds") issued in the late 1980s by the Financing
Corporation ("FICO") to recapitalize the now defunct Federal
Savings and Loan Insurance Corporation are being paid jointly by
BIF-insured institutions and SAIF insured institutions. The FICO
assessment is 1.29 basis points per $100 in BIF deposits and 6.44
basis points per $100 in SAIF deposits. Beginning January 1,
2000, the FICO interest payments will be paid pro rata by banks
and thrifts based on deposits (approximately 2.4 basis points per
$100 in deposits). The BIF and SAIF will be merged on January 1,
1999, provided the bank and savings association charters are
merged by that date. In that event, pro-rata FICO sharing will
begin on January 1, 1999.
While the legislation has reduced the disparity between
premiums paid on BIF deposits and SAIF deposits, and has relieved
the thrift industry of a portion of the contingent liability
represented by the FICO bonds, the premium disparity between
SAIF-insured institutions, such as the Association, and
BIF-insured institutions will continue until at least January 1,
1999. Under the legislation, the Association anticipates that
its ongoing annual SAIF premiums will be approximately $17,000.
The Congress is also considering requiring all federal
thrift institutions, such as the Association, to either convert
to a national bank or a state chartered depository institution by
January 1, 1998. In addition, the Corporation may no longer be
regulated as a thrift holding company, but rather as a bank
holding company. The Office of Thrift Supervision (OTS) also
would be abolished and its functions transferred among the
federal banking regulators.
<PAGE> 14
Financial Condition
- -------------------
Consolidated assets of First Allen Parish Bancorp, Inc. were
$33,272,922 as of September 30, 1997, an increase of $1,738,052
as compared to December 31, 1996. At September 30, 1997, total
stockholders' equity was $4,556,524, an increase of $237,057 when
compared to stockholders' equity at December 31, 1996. The
increase in stockholders' equity was a result of increases in
deposits and net income earned during the nine months ending
September 30, 1997. Net Interest Income. Total net interest
income increased $29,573 or 12.2% to $272,162 for the three
months ended September 30, 1997 from $242,589 for the three
months ended September 30, 1996. This increase was primarily the
result of an increase in income earned on loans receivable and
mortgage-backed securities offset by an increase in the average
cost of deposits.
Interest-bearing and non-interest bearing deposits and
investment securities increased to $2,814,107 at September 30,
1997 from $1,733,505 at December 31, 1996, an increase of
$1,080,602. Mortgage backed securities decreased $550,886 to a
total of $16,634,449 at September 30, 1997, from a total of
$17,185,335 as of December 31, 1996.
Loans receivable increased to $13,063,451 on September 30,
1997 from $11,937,990 on December 31, 1996, an increase of
$1,125,461.
Deposits totaled $28,400,825 on September 30, 1997 and
$25,749,999 on December 31, 1996, an increase of $2,650,826.
Comparison of Operating Results for the Three Months Ended
- ----------------------------------------------------------
September 30, 1997 and 1996
- ---------------------------
General. Net income increased $119,179 to a total of
$83,098 for the three months ended September 30, 1997 from a loss
of $36,081 for the three months ended September 30, 1996. This
increase was primarily due to the one-time SAIF assessment of
$170,000 expensed in September of 1996.
Net Interest Income. Total net interest income increased
$29,573 or 12.2% to $272,162 for the three months ended September
30, 1997 from $242,589 for the three months ended September 30,
1996. This increase was primarily the result of an increase in
income earned on loans receivable and mortgage-backed securities
offset by an increase in the average cost of deposits.
Provision for Losses on Loans. The Association maintains an
allowance for loan losses based upon management's periodic
evaluation of known and inherent risk in the loan portfolio, the
Association's past loss experience, adverse situations that may
affect the borrower's ability to repay loans, estimated value of
the underlying collateral and current and expected market
conditions. During the three months ended September 30, 1997 the
Association experienced recoveries on loans for which reserves
had previously been established. The provision and recovery of
$1,336 and $1,722 for the three months ended September 30, 1997
and 1996, respectively were primarily due to losses and
recoveries on consumer loans.
<PAGE> 15
Non-Interest Income. Non-interest income decreased $343 to
$68,821 for the three months ended September 30, 1997 from
$69,164 for the three months ended September 30, 1996. This
decrease was primarily due to a $3,319 decrease in service
charges on deposits, offset by an increase of $2,825 in loan
origination and servicing fees.
Non-Interest Expense. Non-interest expense decreased
$156,084 or 42.3% to $213,170 for the three months ended
September 30, 1997 from $369,154 for the three months ended
September 30, 1996. This decrease was primarily due to the
one-time SAIF assessment of $170,000 in 1996. Total SAIF
premiums decreased $181,275 to $4,279 for the three months ended
September 30, 1997 from $185,554 for the three months ended
September 30, 1996. This decrease in non-interest expense was
offset by an increase of $22,876 in other expenses and an
increase of $3,477 in data processing..
Income Tax Expense. Income tax expense increased $66,133 to
a total of $44,813 for the three months ended September 30, 1997
from an income tax benefit of $21,320 for the three months ended
September 30, 1996.
<PAGE> 16
Comparison of Operating Results for the nine months ended
- ---------------------------------------------------------
September 30, 1997 and 1996.
- ----------------------------
General. Net income increased $145,842 or 146% to $245,918
for the nine months ended September 30, 1997 from $100,076 for
the nine months ended September 30, 1996. This increase was
primarily due to an increase in net interest income of $89,193
and a decrease of $131,857 in non-interest expenses offset by an
increase in income taxes of $76,700.
Net interest Income. Net interest income increased $89,193,
or 12.4% to $807,794 for the nine months ended September 30, 1997
from $718,601 for the nine months ended September 30, 1996.
Provision for Losses on Loans. The Association experienced
recoveries on loans for which reserves had previously been
established in the amounts of $2,760 and $11,183 for the nine
months ended September 30, 1997 and 1996, respectively.
Non-Interest Income. Non-interest income increased $1,492
or .8% to $196,452 for the nine months ended September 30, 1997
from $194,960 for the nine months ended September 30, 1996.
Non-Interest Expense. Non-interest expense decreased
$131,857 or 17.3% to $629,628 for the nine months ended September
30, 1997 from $761,485 for the nine months ended September 30,
1996. This decrease was primarily due to a $203,436 decrease in
SAIF deposit insurance premiums, offset by a $21,569 increase in
compensation and employee benefits, a $6,583 increase in
occupancy and equipment expenses and a $47,157 increase in other
expenses.
Income Tax Expenses. Income tax expense increased $76,700
to $128,700 for the nine months ended September 30, 1997 from
$52,000 for the nine months ended September 30, 1996.
Non-Performing Assets
- ---------------------
At September 30, 1997, non-performing assets were
approximately $198,111 compared to $119,000 on December 31, 1996.
At September 30, 1997, the Association's allowance for loan
losses was 160% of non performing loans compared to 249% at
December 31, 1996.
Loans are considered non-performing when the collection of
principal and/or interest is not probable, or in the event
payments are more than 90 days delinquent.
<PAGE> 17
Capital Resources
- -----------------
The Association is subject to three capital to asset
requirements in accordance with Office of Thrift Supervision
(OTS) regulations. The following table is a summary of the
Association's regulatory capital requirements versus actual
capital as of September 30, 1997:
<TABLE>
<CAPTION>
Actual Required Excess
Amount/Percent Amount/Percent Amount/Percent
---------------------------------------------------
<S> <C> <C> <C>
Tangible $3,431,000/10.63% $ 484,000/1.50% $2,947,000/9.13%
Core Leverage
Capital $3,431,000/10.63% $ 969,000/3.00% $2,462,000/7.63%
Risk-Based
Capital $3,578,000/11.08% $1,052,000/3.26% $2,526,000/7.82%
</TABLE>
Liquidity
- ---------
The Association's principal sources of funds are deposits,
principal and interest payments on loans, deposits in other
insured institutions, and investment securities. While scheduled
loan repayments and maturing investments are relatively
predictable, deposit flows and early loan payments are more
influenced by interest rates, general economic conditions and
competition. Additional sources of funds may be obtained from the
Federal Home Loan Bank of Dallas by utilizing numerous available
products to meet funding needs.
The Association is required to maintain minimum levels of
liquid assets as defined by regulations. The required percentage
is currently five percent of net withdrawable savings deposits
and borrowings payable on demand or in one year or less. The
Association has maintained its liquidity ratio at levels
exceeding the minimum requirement. The eligible liquidity ratios
at December 31, 1996, and September 30, 1997, were 7.78% and
9.02%, respectively.
For purposes of the cash flows, all short-term investments
with a maturity of three months or less at date of purchase are
considered cash equivalents. Cash and cash equivalents for the
periods ended September 30, 1997 and 1996 were $2,554,807 and
$2,979,851, respectively. The decrease was primarily due to the
net cash used in investing activities for loan originations and
purchase of mortgage-backed securities along with cash provided
by financing activities from issuance of 264,506 shares of .01
par value common stock at $10 per share.
<PAGE> 18
<TABLE>
<CAPTION>
PART II - OTHER INFORMATION
<S> <C>
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
Exhibits:
27 - Financial Data Schedule
Reports on Form 8-K:
None.
</TABLE>
<PAGE>
<PAGE> 19
SIGNATURES
Pursuant to the requirement of the Securities Exchange Act
of 1934, the registrant has duly caused this report to be signed
on its behalf by the undersigned thereunto duly authorized.
First Allen Parish Bancorp,Inc.
Registrant
<TABLE>
<S> <C>
Date: November 11, 1997 /s/Charles L. Galligan
---------------------------------
Charles L. Galligan, President
and Chief Executive Officer
(Duly Authorized Officer)
Date: November 11, 1997 /s/Betty J. Parker
--------------------------------
Betty J. Parker, Treasurer and
Chief Financial Officer
</TABLE>
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 9
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE SEPTEMBER
30, 1997, CONSOLIDATED BALANCE SHEET AND THE CONSOLIDATED STATEMENT OF INCOME FOR
THE NINE MONTHS ENDED SEPTEMBER 30, 1997, AND IS QUALIFIED IN ITS ENTIRELY BY
REFERENCE TO SUCH FINANCIAL STATMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> SEP-30-1997
<CASH> 582,306
<INT-BEARING-DEPOSITS> 1,972,501
<FED-FUNDS-SOLD> 0
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 4,657,563
<INVESTMENTS-CARRYING> 11,976,886
<INVESTMENTS-MARKET> 11,973,923
<LOANS> 13,063,451
<ALLOWANCE> 318,175
<TOTAL-ASSETS> 33,227,922
<DEPOSITS> 28,400,825
<SHORT-TERM> 0
<LIABILITIES-OTHER> 270,573
<LONG-TERM> 0
0
0
<COMMON> 2,645
<OTHER-SE> (191,433)
<TOTAL-LIABILITIES-AND-EQUITY> 33,227,922
<INTEREST-LOAN> 298,625
<INTEREST-INVEST> 266,153
<INTEREST-OTHER> 23,232
<INTEREST-TOTAL> 588,010
<INTEREST-DEPOSIT> 313,049
<INTEREST-EXPENSE> 4,135
<INTEREST-INCOME-NET> 270,826
<LOAN-LOSSES> (1,336)
<SECURITIES-GAINS> 1,793
<EXPENSE-OTHER> 213,070
<INCOME-PRETAX> 127,913
<INCOME-PRE-EXTRAORDINARY> 127,913
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 83,099
<EPS-PRIMARY> .34
<EPS-DILUTED> .34
<YIELD-ACTUAL> 7.45
<LOANS-NON> 90,009
<LOANS-PAST> 0
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 330,230
<ALLOWANCE-OPEN> 292,141
<CHARGE-OFFS> 1,446
<RECOVERIES> 1,220
<ALLOWANCE-CLOSE> 292,367
<ALLOWANCE-DOMESTIC> 21,085
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 271,282
</TABLE>
