[ARTICLE] 9
[LEGEND]
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE MARCH 31,
1999, CONSOLIDATED BALANCE SHEET AND THE CONSOLIDATED STATEMENT OF INCOME FOR
THE THREE MONTHS ENDED MARCH 31, 1999, AND IS QUALIFIED IN ITS ENTIRELY BY
REFERENCE TO SUCH STATEMENTS.
[/LEGEND]
<TABLE>
<S> <C>
[PERIOD-TYPE] 3-MOS
[FISCAL-YEAR-END] DEC-31-1999
[PERIOD-END] MAR-31-1999
[CASH] 847,807
[INT-BEARING-DEPOSITS] 2,023,954
[FED-FUNDS-SOLD] 0
[TRADING-ASSETS] 0
[INVESTMENTS-HELD-FOR-SALE] 6,572,689
[INVESTMENTS-CARRYING] 9,113,548
[INVESTMENTS-MARKET] 9,111,183
[LOANS] 16,359,268
[ALLOWANCE] 310,954
[TOTAL-ASSETS] 36,330,411
[DEPOSITS] 31,504,555
[SHORT-TERM] 0
[LIABILITIES-OTHER] 238,629
[LONG-TERM] 0
[PREFERRED-MANDATORY] 0
[PREFERRED] 0
[COMMON] 2,666
[OTHER-SE] (156,335)
[TOTAL-LIABILITIES-AND-EQUITY] 36,330,411
[INTEREST-LOAN] 354,373
[INTEREST-INVEST] 241,439
[INTEREST-OTHER] 44,726
[INTEREST-TOTAL] 640,538
[INTEREST-DEPOSIT] 315,611
[INTEREST-EXPENSE] 0
[INTEREST-INCOME-NET] 324,927
[LOAN-LOSSES] 6,000
[SECURITIES-GAINS] 0
[EXPENSE-OTHER] 263,657
[INCOME-PRETAX] 143,574
[INCOME-PRE-EXTRAORDINARY] 143,574
[EXTRAORDINARY] 0
[CHANGES] 0
[NET-INCOME] 93,323
[EPS-PRIMARY] .38
[EPS-DILUTED] .38
[YIELD-ACTUAL] 7.402
[LOANS-NON] 78,418
[LOANS-PAST] 0
[LOANS-TROUBLED] 0
[LOANS-PROBLEM] 104,240
[ALLOWANCE-OPEN] 303,025
[CHARGE-OFFS] 7,929
[RECOVERIES] 0
[ALLOWANCE-CLOSE] 310,954
[ALLOWANCE-DOMESTIC] 21,085
[ALLOWANCE-FOREIGN] 0
[ALLOWANCE-UNALLOCATED] 289,869
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<PAGE>
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 MARCH 31, 1999
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 March 31, 1999
- --------------------------- -----------------------------
Common Stock, .01 par value 266,622
<PAGE> 2
FIRST ALLEN PARISH BANCORP, INC.
TABLE OF CONTENTS
Page
<S> <C>
Part I - FINANCIAL INFORMATION
Item 1: Financial Statements
Consolidated statements of financial condition 3
Consolidated statements of income 4
Consolidated statements of cash flows 5-6
Notes to consolidated financial statements 7-8
Item 2: Management's Discussion and Analysis of
Financial Condition and Results of Operations 9-14
Part II - OTHER INFORMATION 15
Signatures 16
<PAGE>
FIRST ALLEN PARISH BANCORP, INC. AND SUBSIDIARY
Consolidated Statements of Financial Condition
March 31, 1999 and December 31, 1998
March 31, 1999
(Unaudited) December 31,1998
-------------- ----------------
<S> <C> <C>
ASSETS
Cash and cash equivalents
Interest-bearing $ 2,023,954 $ 5,506,432
Non-interest bearing 847,807 812,796
Mortgage-backed and related securities -
held-to-maturity 9,113,548 9,743,993
Mortgage-backed and related securities -
available-for-sale, estimated
marketvalue 6,572,689 6,451,230
Loans receivable, net 16,359,268 14,896,198
Accrued interest receivable 253,121 235,545
Other receivables 110,038 43,925
Foreclosed real estate -
- -Federal Home Loan Bank stock, at cost 262,800 263,000
Premises and equipment, at cost, less
accumulated depreciation 717,296 705,495
Other assets 69,890 35,016
----------- -----------
Total assets $36,330,411 $38,693,630
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES
Deposits $31,504,555 $33,553,066
Advances from Federal Home Loan Bank - -
Advances by borrowers for taxes
and insurance 22,921 20,402
Federal income taxes:
Current 39,691 24,263
Deferred 95,367 84,623
Accrued liabilities 34,825 141,542
Dividends Payable 635 40,311
Deferred income 45,190 46,279
---------- ----------
Total liabilities 31,743,184 33,910,486
---------- ----------
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, 266,622 shares
issued and outstanding) 2,666 2,666
Treasury Stock (292,680) -
Additional paid-in capital 2,392,734 2,388,502
Retained earnings (substantially
restricted) 2,640,842 2,547,519
Unrealized gain on securities
available-for-sale 2,365 8,447
Unearned employee stock ownership plan(158,700) (163,990)
--------- ---------
Total stockholders' equity 4,587,227 4,783,144
--------- ---------
Total liabilities and stockholders'
equity $36,330,411 $38,693,630
=========== ===========
See accompanying notes to consolidated financial statements.
<PAGE>
FIRST ALLEN PARISH BANCORP, INC. AND SUBSIDIARY
Consolidated Statements of Income
For the three months ended March 31, 1999 and 1998
(Unaudited)
1999 1998
------------- -------------
<S> <C> <C>
INTEREST INCOME
Loans receivable:
First mortgage loans $260,188 $233,875
Consumer and other loans 94,185 74,427
Mortgage-backed and related securities 241,439 261,174
Other interest earning assets 44,726 19,721
------- -------
Total interest income 640,538 589,197
------- -------
INTEREST EXPENSE
Deposits 315,611 307,186
Borrowed funds 2,523
------- -------
Total interest expense 315,611 309,709
------- -------
Net interest income 324,927 279,488
PROVISION for LOAN LOSSES 6,000 -
------- -------
Net interest income after provision
for loan losses 318,927 279,488
------- -------
NONINTEREST INCOME
Service charges on deposits 55,525 49,296
Insurance commissions earned 6,355 1,252
Loan origination and servicing fees 19,810 9,402
Net other real estate expenses - (420)
Other operating revenues 6,614 6,315
------- -------
Total noninterest income 88,304 65,845
------- -------
NONINTEREST EXPENSES
Compensation and employee benefits 129,690 114,715
Occupancy and equipment expenses 25,881 18,687
SAIF deposit insurance premiums 4,407 4,402
Stationery and printing 13,862 16,514
Data processing 21,309 16,876
Other expenses 68,508 68,484
------- -------
Total noninterest expenses 263,657 239,678
------- -------
Income before income taxes 143,574 105,655
INCOME TAX EXPENSE 50,251 36,385
------- -------
NET INCOME 93,323 69,270
======== ========
Net earnings per common share:
Primary and fully diluted
Weighted average number of shares
outstanding $0.38 $0.28
======== ========
Primary and fully diluted 247,930 245,198
<PAGE>
FIRST ALLEN PARISH BANCORP, INC. AND SUBSIDIARY
Consolidated Statements of Cash Flows
For the three months ended March 31, 1999 and 1998
(Unaudited)
1999 1998
----------- ----------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net income $ 93,323 $ 69,270
----------- -----------
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation of premises and
equipment 16,104 10,093
Provision for loan losses 6,000
Premium amortization net of
discount accretion (2,317) 11,456
Compensation Esop 4,232 7,539
Deferred income taxes 10,744 (1,954)
Stock dividend on FHLB Stock (3,500) (3,700)
Changes in assets and liabilities
(Increase) decrease in accrued
interest receivable (17,576) 7,989
Increase in other receivable (66,113) (157,168)
Increase in other assets (34,874) (39,105)
Decrease in advance payable,
Federal Home Loan Bank
Increase (decrease) in accrued
liabilities (106,717) 9,003
Increase (decrease) in current
income taxes payable 15,428 (16,618)
(Increase) decrease in deferred
income (1,089) 818
----------- -----------
Total adjustments (179,678) (171,647)
----------- -----------
Net cash used by
operating activities (86,355) (102,377)
----------- -----------
CASH FLOWS FROM INVESTING ACTIVITIES
Net decrease (increase) in mortgage-backed
and related securities 508,986 (224,844)
Sale of investment securities 3,700 3,700
Net increase in loans made to
customers (1,799,901) (193,997)
Purchase of property and equipment (27,905) (70,300)
----------- -----------
Net cash used by
investing activities (1,315,120) (485,441)
(continued)
See accompanying notes to consolidated financial statements.
<PAGE>
FIRST ALLEN PARISH BANCORP, INC. AND SUBSIDIARY
Consolidated Statements of Cash Flows (continued)
For the three months ended March 31, 1999 and 1998
(Unaudited)
1999 1998
----------- -----------
<S> <C> <C>
CASH FLOWS FROM FINANCING ACTIVITIES
Net increase decrease in demand deposits,
NOW accounts, passbook savings accounts,
and certificates of deposits (2,048,511) 171,886
Net increase in advances by
borrowers for taxes and insurance 2,519 3,800
---------- ----------
Net cash provided (used) by
financing activities (2,045,992) 175,686
---------- ----------
Net decrease in cash
and cash equivalents (3,447,467) (412,132)
CASH AND CASH EQUIVALENTS, beginning
of period 6,319,228 1,884,242
---------- ----------
CASH AND CASH EQUIVALENTS, end
of period $2,871,761 $1,472,110
========== ==========
Supplemental Disclosures
Cash paid for:
Interest on deposits, advances,
and other borrowings $ 336,019 $ 305,577
Income taxes 39,690
Change in unrealized gain (loss)
on securities available for
sale, net of deferred tax 6,082 19,323
See accompanying notes to consolidated financial statements.
<PAGE>
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 March 31, 1999, 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 oncompensation.
Participant benefits become 100 percent vested after five
years. The ESOP purchased 21,160 shares in the Association's
conversions. At March 31, 1999, 5,290 shares had been
allocated to participants, with 15,870 shares unallocated.
(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, 1998,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 months
ended March 31, 1999 are not necessarily indicative of the
results which may be expected for the entire year.
<PAGE> 8
FIRST ALLEN PARISH BANCORP, INC. AND SUBSIDIARY
Notes to Consolidated Financial Statements (Continued)
(Unaudited)
(4) Earnings Per Share
------------------
The Company adopted FAS 128, Earnings Per Share as of
December 31, 1997. Weighted average shares of common stock
outstanding for basic EPS excludes the weighted average
shares unreleased by the Employee Stock Ownership
Plan(ESOP)(15,8 70 and 16,399 shares at March 31, 1999 and
December 31, 1998 respectively and the weighted average
invested shares in the Recognition and Retention
Plan(RRP)(8,464 shares at March 31, 1999 and December 31,
1998). The effect on diluted EPS of stock option shares
outstanding and invested RRP shares if calculated using the
treasury stock method. Earnings per share for the three
month period ended March 31, 1999 were based on 247,930
shares outstanding.
(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. T he conversion was effective on
September 27, 1996 and resulted inthe 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> 9
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 thecapital stock of the Association,
the First Allen Parish Bancorp loan to the employee stock
ownership plan (ESOP), representing aportion of the net
proceeds from the conversion retained at the holding
company level and investments in mortgage backedsecurities.
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 full-service
branch in Oberlin,Louisiana and a Loan ProductionOffice(LPO)
located in Kinder, 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> 10
The FDIC is authorized to establish separate annual
assessment rates for deposit insurance for members of the BIF and
members of the SAIF. The FDIC may increase assessment rates for
either fund if necessary to restore the fund's ratio of reserves
to insured deposits to the target level within a reasonable time,
and may decrease these rates if the target level has been met.
The FDIC has established a risk-based assessment system for both
SAIF and BIF members. Under this system, assessments vary
depending on the risk the institution poses to its deposit
insurance fund. An institutions's risk level is determined based
on its capital levels, and the FDIC's level of supervisory
concern about the institution.
In 1996, federal legislation was enacted to recapitalize the
SAIF and eliminate the significant premium disparity between the
BIF and the SAIF. Under the law, the Association and other
institutions with SAIF-insured deposits were charged a one-time
special assessment equal to $0.657 per $100 of assessable
deposits at March 31, 1995. The Association recognized this
special assessment as a charge to noninterest expense of
$170,000(or $112,000 when adjusted for taxes) during the year
ended December 31, 1996. The assessment was fully deducible for
both federal and state income tax purposes. Assessment rates for
regular ongoing, deposit insurance premiums currently range from
0.0% of deposits for an institution in the highest category(i.e.,
well-capitalized and financially sound, with no more than a few
minor weaknesses) to 0.27% of deposits for an institution in the
lowest category(i.e., undercapitalized and substantial
supervisory consent). The Association's assessment rate for
deposit insurance was 0.23% of deposits for 1996, and it was
reduced to 0.0% of deposits beginning on January 1, 1997. The
FDIC is authorized to raise the assessment rates as necessary to
maintain the required reserve ratio of 1.25%, and both the BIF
and the SAIF currently satisfy the reserve ratio requirement.
The annual rate of assessments of SAIF-assessable deposits for
the payments on the FICO bonds was 0.0648% for the semi-annual
period beginning on January 1, 1997; 0.0630% for the semi-annual
period beginning on July 1, 1997; and 0.0622% currently. The
1996 law also provides for the merger of the SAIF and the BIF by
1999, but not until such time as bank and thrift charters are
combined. Until the charters are combined, savings associations
with SAIF deposits may not transfer deposits to the BIF without
paying various exit and entrance fees, and SAIF institutions
will continue to pay higher FICO assessments. Such exit and
entrance fees need not be paid if a SAIF institution converts to
a bank charter or merges with a bank, as long as the resulting
bank continues to pay applicable insurance assessments to the
SAIF, and as long as certain other conditions are met.
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 Internal Revenue Code, the Company is allowed to
deduct an experience method bad debt deduction based on actual
charge-offs. This deduction is an addition to tax bad debt
reserves established for the purpose of absorbing losses. The
Act also provides that federal income tax bad debt reserve in
excess of the past year reserves will be included in taxable
income. Taxable income for 1998 included $119,038 of recapture
of this bad debt reserve.
<PAGE> 11
Financial Condition
- -------------------
Consolidated assets of First Allen Parish Bancorp, Inc.
decreased $2.4 million to $36.3 million at March 31, 1999, from
$38.7 million at December 31, 1998. This decrease was the result
of $3.5 million of cast and cash equivalents needed to fund the
local Sheriff's tax collection account being reduced by
approximately $2.0 million, due to disbursement of taxes
during the first quarter and to fund a $1.5 million increase in
loans.
Stockholders equity declined $200,000 to $4.6 million at
March 31, 1999 from $4.8 million at December 31, 1998. This
reduction was the result of a stock repurchase plan put into
effect during the first quarter that resulted in the repurchase
of 16,260 shares at $18 per share. Treasury Stock of $293,000
that reduced stockholders equity was offset by income of
$93,000.
Mortgaged-backed and related securities decreased $500,000
to $15.7 million at March 31, 1999 from $16.2 million at
December 31, 1998. The collection of principle and interest on
these securities was used to partially fund the increase in
loans.
Total liabilities decreased $2.2 million to $31.7 million
at March 31, 1999 from $33.9 million at December 31, 1998.
This decrease was the result of a $2.1 million decrease in
deposits to $31.5 at March 31, 1999 for $33.6 million at
December 31, 1998.
Comparison of Operating Results for the Three Months Ended
- ---------------------------------------------------------------
March 31, 1999 and 1998
- -----------------------
General. Net income increased $24,000 or 34.7% to
$93,000 for the three months ended March 31, 1999 from $69,000
for the three months ended March 31, 1998. This increase was
primarily due to increases in net interest income after
provision for loan losses of $39,000 and non-interest income of
$22,000 offset by increases of $24,000 in non-interest expenses
and $14,000 in income tax expense.
Net Interest Income. Total net interest income increased
$46,000 or 16.5% to $325,000 for the three months ended March
31, 1999 from $279,000 for the three months ended March 31,
1998. This increase was primarily the result of an increase in
net loans receivable.
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. The Association established a provision
for loan losses for the three months ended March 31, 1999 of
$6,000 as compared to no provision for the three months ended
March 31,1998.
<PAGE> 12
Non-Interest Income. Non-interest income increased
$22,000 to $88,000 for the three months ended March 31, 1999
from $66,000 for the three months ended March 31, 1998. This
increase was the result of increases of $7,000 in service
charges on deposits, $5,0000 in insurance commissions earned
and $10,000 in loan origination and servicing fees. All of
these increases are a direct result of the increased activity
from the branch offices in Oberlin and Kinder.
Non-Interest Expense. Non-interest expense increased
$24,000 or 10% to $264,000 for the three months ended March 31,
1999 from $240,000 for the three months ended March 31, 1998.
This increase was primarily due to an increase of $15,000 in
compensation and employee benefits, an increase of $7,000 in
occupancy and equipment expenses, an increase or $4,000 in data
processing offset by a $2,0000 decrease in stationery and
printing. All of these increases are a direct result of the
increased activity from the branch offices in Oberlin and
Kinder.
Income Tax Expense. Income tax expense increased $14,000
or 39% to a total of $50,000 for the three months ended March
31, 1999 from an income tax expense of $36,000 for the three
months ended March 31, 1998.
Non-Performing Assets
- ---------------------
At March 31, 1999 non performing assets were approximately
$78,000 compared to $117,000 on December 31, 1998. At March
31, 1999, the Association's allowance for loan losses was 399%
on non performing loans compared to 260% December 31, 1998.
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> 13
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 March 31, 1999:
<CAPTION>
Actual Required Excess
Amount/Percent Amount/Percent Amount/Percent
- ---------------------------- ----------------- ----------------
<S> <C> <C> <C>
Tangible $3,851,000/10.77% $l,430,000/4.00% $2,421,000/ 6.77%
Core
Leverage
Capital $3,851,000/10.77% $1,430,000/4.00% $2,421,000/ 6.77%
Risk-Based
Capital $4,041,000/24.28% $1,331,000/8.00% $2,710,000/16.28%
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, 1998, and March 31, 1999 were
11.87% and 12.99%, 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 March 31, 1999 and 1998 were $2,871,761 and
$1,472,110, respectively.
<PAGE>
<PAGE> 14
FIRST ALLEN PARISH BANCORP, INC. AND SUBSIDIARY
Notes to Consolidated Financial Statements (Continued
Capability of the Company's Data Processing Hardware to
- -------------------------------------------------------
Accommodate the Year 2000
- -------------------------
The Company is aware of the issues associated with the
programming code in existing computer systems as the millennium
(year "2000") approaches. The "year 2000" problem is pervasive
and complex, as virtually every computer operation will be
affected in some way by the rollover of the two-digit year
value of zero. The issue is whether computer systems will
properly recognize date-sensitive information when the year
changes to 2000. Systems that do not properly recognize such
information could generate erroneous data or cause a system to
fail.
The Company is utilizing both internal and external
resources to identify, correct or reprogram and test the
systems for the "year 2000" compliance. All reprogramming
efforts have been completed. To date, confirmations have been
received from the Company's primary processing vendors that
plans are being developed to address processing of transactions
in the "year 2000". Management has assessed the "year 2000"
compliance expense and related potential effect on the
Company's earnings, and the board has approved $75,000 to be
dedicated to this project which is to be expended during years
ended December 31, 1998 and 1999.
<PAGE> 15
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.
<PAGE>
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
<S> <C>
Date: May 10, 1999 /s/Charles L. Galligan
- -------------------- ------------------------------
Charles L. Galligan, President
and Chief Executive Officer
(Duly Authorized Officer)
Date: May 10 1999 /s/Betty Jean Parker
- ------------------- ------------------------------
Betty J. Parker, Treasurer and
Chief Financial Officer
</TABLE>
