UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
------------------------------
FORM 10-QSB
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the quarterly period ended March 31, 2000.
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from _______________ to _______________
Commission file number 0-29655
Alamogordo Financial Corporation
--------------------------------
(Exact name of small business issuer as specified in its charter)
United States of America 74-2819148
--------------------------------------- ------------------------------
(State or other jurisdiction of (IRS Employer Identification Number)
incorporation or organization)
500 10th Street, Alamogordo, New Mexico 88310
-------------------------------------------
(Address of principal executive offices)
(505) 437-9334
--------------
Issuer's telephone number
- --------------------------------------------------------------------------------
Former name, former address and former fiscal year, if changed since last report
APPLICABLE ONLY TO CORPORATE ISSUERS:
State the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date: 10 shares of common stock par
value $.10 per share.
Transitional Small Business Disclosure Format (check one): Yes / / No /x/
<PAGE>
ALAMOGORDO FINANCIAL CORPORATION
INDEX
Page
PART I. FINANCIAL INFORMATION
Item 1. Consolidated Financial Statements
Consolidated Balance Sheets as of
March 31, 2000 and June 30, 1999..................................1
Consolidated Statements of Income for the
three months and nine months ended
March 31, 2000 and 1999...........................................2
Consolidated Statements of Changes in Stockholders'
Equity for the nine months ended
March 31, 2000....................................................3
Consolidated Statements of Cash Flows for the
nine months ended
March 31, 2000 and 1999...........................................4
Notes to Unaudited Consolidated Financial Statements................5
Item 2. Management's Discussion and Analysis
of Financial Condition and Results of
Operations.................................................7
PART II. OTHER INFORMATION..................................................10
ii
<PAGE>
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
Alamogordo Financial Corporation
Consolidated Balance Sheets at
March 31, 2000 and June 30, 1999
(Unaudited)
<TABLE>
<CAPTION>
At At
March 31, 2000 June 30, 1999
-------------- -------------
(Dollars in thousands)
ASSETS
<S> <C> <C>
Cash and cash equivalents................................. $ 7,218 $ 8,472
Securities:
Available for sale.................................. 15,523 17,030
Held to maturity.................................... 2,098 3,473
Loans, net................................................ 117,696 115,949
Real estate owned, net.................................... 52 --
Premises and equipment, net............................... 8,528 8,745
Stock in Federal Home Loan Bank, at cost.................. 1,391 1,332
Accrued interest.......................................... 664 955
Other assets.............................................. 633 202
----------- -----------
Total assets.......................................... $ 153,803 $ 156,158
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits.................................................. $ 122,796 $ 122,469
Escrows................................................... 781 1,006
Accrued interest and other liabilities.................... 351 242
Advances from Federal Home Loan Bank...................... 7,000 10,000
----------- -----------
Total liabilities...................................... 130,928 133,717
----------- -----------
STOCKHOLDERS' EQUITY
Common Stock, par value $.10 per share;
10,000,000 shares authorized, 100 shares issued........ -- --
Retained earnings, substantially restricted............... 23,329 22,710
Accumulated other comprehensive income.................... (454) (269)
----------- -----------
Total stockholders' equity............................ 22,875 22,441
----------- -----------
Total liabilities and stockholders' equity................ $ 153,803 $ 156,158
=========== ==========
</TABLE>
See accompanying notes to consolidated financial statements.
1
<PAGE>
Alamogordo Financial Corporation
Consolidated Statements of Income
For the three months and nine months ended
March 31, 2000 and 1999
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
March 31, March 31,
--------------------------- -----------------------
2000 1999 2000 1999
----------- ----------- ----------- --------
(In Thousands)
Interest income:
<S> <C> <C> <C> <C>
Interest and fees on loans......................... $ 2,258 $ 2,258 $ 6,834 $ 6,721
Interest on securities............................. 247 326 732 1,015
Interest on mortgage-backed securities............. 42 52 129 171
Interest on other interest earning assets.......... 105 106 238 425
---------- ---------- ---------- ----------
Total interest income............................. 2,652 2,742 7,933 8,332
Interest expense:
Interest on deposits............................... 1,530 1,678 4,608 5,197
Interest on FHLB and other borrowings.............. 151 120 401 374
---------- ---------- ---------- ----------
Total interest expense ........................... 1,681 1,798 5,009 5,571
---------- ---------- ---------- ----------
Net interest income.............................. 971 944 2,924 2,761
Provision for loan losses............................ -- -- -- --
---------- ---------- ---------- ----------
Net interest income, after provision for loan losses 971 944 2,924 2,761
---------- ---------- ---------- ----------
Other income (loss)
Service charges and fees........................... 64 35 159 96
Loss on sale of real estate owned.................. -- -- -- (9)
Gain on sale of premises and equipment............. -- -- 29 --
Other.............................................. 33 33 101 99
---------- ---------- ---------- ----------
Total other income................................ 97 68 289 186
---------- ---------- ---------- ----------
Other expenses
Salaries and benefits.............................. 324 309 981 932
Occupancy ......................................... 170 167 514 481
Data processing fees............................... 70 56 198 266
Federal insurance premiums and other insurance
expense.......................................... 17 30 75 92
Advertising ....................................... 18 14 72 48
Other.............................................. 116 144 438 437
---------- ---------- ---------- ----------
Total other expenses.............................. 715 720 2,278 2,256
---------- ---------- ---------- ----------
Income before income taxes........................ 353 292 935 691
---------- ---------- ---------- ----------
Provision for income taxes........................... 122 101 316 206
---------- ---------- ---------- ----------
Net income........................................ $ 231 $ 191 $ 619 $ 485
========== ========== ========== ==========
</TABLE>
See accompanying notes to consolidated financial statements.
2
<PAGE>
Alamogordo Financial Corporation
Consolidated Statement of Changes in Stockholders' Equity
Nine Months ended March 31, 2000
(Unaudited)
<TABLE>
<CAPTION>
Accumulated
Other
Common Retained Comprehensive Total
Stock Earnings Income Equity
----- ------ ------ ------
(In Thousands)
<S> <C> <C> <C> <C> <C> <C>
Balances at June 30, 1999 $ -- $ 22,710 $ (269) $ 22,441
Comprehensive income
Net income.................................. -- 619 -- 619
Other comprehensive income, net of tax:
Change in unrealized loss on securities
available for sale, net of deferred
income tax benefit of $(124)............ -- -- (185) (185)
---------
Total comprehensive income.................. 434
----- --------- --------- ---------
Balances at March 31, 2000..................... $ -- $ 23,329 $ (454) $ 22,875
===== ========= ========= =========
</TABLE>
See accompanying notes to consolidated financial statements.
3
<PAGE>
Alamogordo Financial Corporation
Consolidated Statements of Cash Flows
Nine months ended March 31, 2000 and 1999
(Unaudited)
<TABLE>
<CAPTION>
Nine months ended March 31,
2000 1999
-------- ------
(in thousands)
Cash flows from operating activities:
<S> <C> <C>
Net income................................................................... $ 619 $ 485
Adjustments to reconcile net income to net cash provided by
operating activities
Depreciation.............................................................. 270 256
Net amortization of premiums and accretion of discounts on securities..... (55) (63)
Gain on sale of loans..................................................... -- (5)
Loss on sales of other real estate owned.................................. -- 9
Gain on sales of premises and equipment................................... (29) --
(Increase) decrease in interest receivable................................... 291 (39)
Increase in other assets..................................................... (431) (60)
Increase (decrease) in interest payable and other liabilities................ 109 (127)
-------- -------
Net cash provided by operating activities................................. 774 456
Cash flows from investing activities:
Proceeds from maturities of securities available-for-sale.................... 1,183 20,441
Proceeds from maturities of securities held-to-maturity...................... 5,439 640
Purchases of securities available-for-sale................................... -- (14,229)
Purchases of securities held-to-maturity..................................... (3,870) (4,281)
Purchases of FHLB stock...................................................... (59) (55)
Net increase in loans........................................................ (1,957) (818)
Proceeds from sale of loans.................................................. -- 1,148
Purchases of loans........................................................... -- (4,585)
Proceeds from sales of premises and equipment................................ 74 --
Purchases of premises and equipment.......................................... (98) (403)
Net proceeds from sales of real estate owned................................. 158 25
-------- -------
Net cash provided by (used in) investing activities....................... 870 (2,117)
Cash flows from financing activities:
Net increase in deposits..................................................... 327 290
Net decrease in escrows...................................................... (225) (289)
Payments on note payable..................................................... -- (151)
Payments on advances from Federal Home Loan Bank............................. (3,000) --
-------- -------
Net cash used in financing activities..................................... $ (2,898) $ (150)
======== =======
Net decrease in cash and cash equivalents....................................... $ (1,254) $(1,811)
Cash and cash equivalents, beginning of year.................................... 8,472 6,992
-------- -------
Cash and cash equivalents, end of year.......................................... $ 7,218 $ 5,181
======== =======
Noncash investing and financing activities:
Transfers of loans to real estate owned...................................... $ 209 $ 43
Supplemental disclosures of cash flow information:
Income taxes paid............................................................ $ 294 $ 194
Interest..................................................................... 5,055 5,602
</TABLE>
See accompanying notes to consolidated financial statements.
4
<PAGE>
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in thousands)
1. Stock Offering
--------------
On October 19,1999, the Board of Directors of Alamogordo Financial adopted
a Plan of Stock issuance. Pursuant to the Plan of Stock Issuance, a prospectus
dated February 11, 2000, and a prospectus supplement dated April 11, 2000,
Alamogordo Financial plans to offer and sell up to 410,550 shares of its common
stock for $10.00 per share in a community offering, and issue additional shares
to AF Mutual Holding Company. Following the offering, purchasers in the offering
will own 28.0% of Alamogordo Financial's common stock, and AF Mutual Holding
Company will own 72.0%. Offering costs will be deferred and deducted from the
proceeds of the shares sold. If the offering is not completed, all costs will be
charged to expense.
2. Basis of Presentation
---------------------
The financial statements included herein have been prepared by Alamogordo
Financial without audit. In the opinion of management, the unaudited financial
statements include all adjustments, consisting of normal recurring accruals,
necessary for a fair presentation of the financial position and results of
operations for the periods presented. Certain information and footnote
disclosures normally included in accordance with generally accepted accounting
principles have been condensed or omitted pursuant to the rules and regulations
of the Securities and Exchange Commission. Alamogordo Financial believes that
the disclosures are adequate to make the information presented not misleading;
however, the results for the quarter ended March 31, 2000 are not necessarily
indicative of results to be expected for the entire fiscal year ending June 30,
2000.
The interim unaudited financial statements presented herein should be read
in conjunction with Alamogordo Financial's prospectus dated February 11, 2000,
and the annual audited financial statements of Alamogordo Financial for the
fiscal year ended June 30, 1999, that are contained in the prospectus.
3. Allowance for Loan Losses
-------------------------
The allowance for loan losses is established through provisions for losses
charged to earnings. Loan losses are charged against the allowance when
management believes that the collection of principal is unlikely. Recoveries of
loans previously charged-off are credited to the allowance when realized.
The allowance for loan losses is an amount that management believes will be
adequate to absorb probable losses on existing loans that may become
uncollectible, based on evaluations of the collectibility of the loans.
Management's evaluations, which are subject to periodic review by the Bank's
regulators, take into consideration such factors as the Bank's past loan loss
experience, changes in the nature and volume of the loan portfolio, overall
portfolio quality, review of specific problem loans and collateral values, and
current economic conditions that may affect the borrowers' ability to pay.
Future adjustments to the allowance for loan losses may be necessary based on
changes in economic and real estate market conditions, further information
obtained regarding known problem loans, regulatory examinations, the
identification of additional problem loans, and other factors.
5
<PAGE>
Activity in the allowance for loan losses for the periods indicated is
summarized as follows:
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
March 31, March 31,
2000 1999 2000 1999
--------- -------- --------- ------
(In Thousands)
<S> <C> <C> <C> <C>
Balance at beginning of period....... $ 469 $ 481 $ 472 $ 486
Provision for loan losses............ -- -- -- --
Charge-offs.......................... (1) (4) (12) (9)
Recoveries........................... 2 -- 10 --
--------- -------- --------- --------
Balance at end of period............. $ 470 $ 477 $ 470 $ 477
========= ======== ========= ========
</TABLE>
4. Comprehensive Income
--------------------
Alamogordo Financial has adopted Statement of Financial Accounting
Standards ("SFAS") No. 130, "Reporting Comprehensive Income", which establishes
standards for reporting and display of comprehensive income and its components
(revenues, expenses, gains and losses). In accordance with the provisions of
SFAS No. 130, Alamogordo Financial's total comprehensive income (loss) was $434
and $444 for the nine months ended March 31, 2000 and 1999, respectively, and
$172 and $122 for the three months ended March 31, 2000 and 1999, respectively.
The difference between Alamogordo Financial's net income and total comprehensive
income for these periods equals the change in the after-tax net unrealized gain
or loss on securities available for sale during the applicable periods.
Accumulated other comprehensive income (loss) in the consolidated statements of
financial condition represents the after-tax net unrealized gain (loss) on
securities available for sale as of March 31, 2000 and June 30, 1999.
6
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
Management's Discussion and Analysis of Financial Condition at March 31, 2000
and June 30, 1999
Alamogordo Financial's total assets decreased by $2.4 million, or 1.5%, to
$153.8 million at March 31, 2000, from $156.2 million at June 30, 1999. The
decrease resulted primarily from a decrease in securities and cash and cash
equivalents, partially offset by an increase in loans receivable. Securities,
including mortgage-backed securities, decreased by $2.9 million, or 14.1%, to
$17.6 million from $20.5 million as a result of maturities and repayments. Cash
and cash equivalents decreased by $1.3 million, or 14.8%, to $7.2 million from
$8.5 million primarily due to the paydown of advances from Federal Home Loan
Bank and the funding of new loans, partially offset by the proceeds from the
maturity and repayment of securities. Loans receivable increased by $1.8
million, or 1.5%, to $117.7 million from $115.9 million as a result of new loan
originations surpassing principal repayments and loan payoffs.
Total deposits increased by $327,000, or .3%, to $122.8 million at March
31, 2000 from $122.5 million at June 30, 1999. The increase resulted from a
$521,000, or 2.8%, increase in transaction and savings deposits to $19.0 million
from $18.5 million, partially offset by a $249,000, or 17.8%, decrease in non-
interest-bearing deposits to $1.2 million from $1.4 million. Total borrowings
decreased by $3.0 million, or 30.0%, to $7.0 million from $10.0 million. The
decrease resulted from the paydown of advances from Federal Home Loan Bank.
Equity increased by $434,000, or 1.9%, to $22.9 million from $22.4 million
primarily due to earnings over the period, partially offset by a $185,000
decrease in accumulated other comprehensive income related to unrealized losses
on securities available for sale. As of March 31, 2000, Alamogordo Federal had
$22.6 million of tangible capital or 14.7% of tangible assets, $22.6 million of
core capital or 14.7% of total adjusted assets, and $23.0 million of risk-based
capital or 30.2% of risk-weighted assets.
Comparison of Operating Results for the Three Months Ended March 31, 2000 and
1999
General. Net income increased by $40,000, or 20.9%, to $231,000 for the
three months ended March 31, 2000, from $191,000 for the three months ended
March 31, 1999. The increase resulted from an increase in net interest income
and other income, partially offset by an increase in the provision for income
taxes.
Interest Income. Interest income decreased by $90,000, or 3.3%, to $2.65
million for the three months ended March 31, 2000 from $2.74 million for three
months ended March 31, 1999. The decrease resulted from a decrease in interest
on securities. Although interest and fees on loans receivable remained stable at
$2.3 million, a $3.3 million, or 2.9%, increase in the average balance of loans
receivable to $117.1 million from $113.8 million was offset by a 23 basis point
decrease in the average yield on the loan portfolio to 7.71% from 7.94%. The
increase in average balance of loans receivable resulted from a net increase in
both mortgage and consumer and other loans. The decrease in the average yield
resulted from the prepayment of higher yielding loans and a decrease in deferred
loan fee income. Interest on securities, including mortgage-backed securities
and other interest-earning assets, decreased by $90,000, or 18.6%, to $394,000
from $484,000. This decrease resulted from a $7.1 million, or 26.3%, decrease in
the average balance of securities due to maturities and repayment of principal,
the effects of which were partially offset by a 22 basis point increase in the
average yield on securities, and a $1.9 million decrease in the average
7
<PAGE>
balance of other interest-earning assets, the effects of which were partially
offset by an increase in the average yield of 151 basis points.
Interest Expense. Interest expense on deposits decreased by $148,000, or
8.8%, to $1.5 million for the three months ended March 31, 2000 from $1.7
million for the three months ended March 31, 1999. Interest expense on
transaction and savings accounts increased to $113,000 from $98,000, as the
average balance of transaction and savings accounts remained relatively stable
at $18.2 million, and the average cost increased to 2.48% from 2.15% as a result
of a general increase in shorter-term market rates of interest. Interest expense
on certificate accounts decreased by $163,000, to $1.4 million from $1.6
million, as the average balance of certificate accounts decreased by $5.6
million and the average cost decreased by 31 basis points to 5.53% from 5.84%.
The decrease in certificate accounts resulted in part from a decrease in public
funds. Interest expense on borrowings increased by $31,000, to $151,000 from
$120,000, as the average cost increased by 133 basis points to 6.12% from 4.79%,
the effects of which were partially offset by a $154,000 decrease in the average
balance to $9.9 million from $10.0 million.
Net Interest Income. Net interest income increased by $27,000 or 2.9%, to
$971,000 for the three months ended March 31, 2000 from $944,000 for the three
months ended March 31, 1999. Net interest rate spread, the difference between
the yield on average total interest-earning assets and the cost of average total
interest-bearing liabilities, increased by 17 basis points to 2.26% from 2.09%.
Provision for Loan Losses. We establish provisions for loan losses, which
are charged to operations, in order to maintain the allowance for loan losses at
a level that we believe is appropriate to absorb future charge-offs of loans
deemed uncollectible. In determining the appropriate level of the allowance for
loan losses, management considers loss experience, evaluations of real estate
collateral, economic conditions, volume and type of lending the levels of
nonperforming and other classified loans. Based on our evaluation of these
factors, and based on loan allowance recoveries of $2,000 and charge-offs of
$1,000 for the three months ended March 31, 2000, and charge-offs of $4,000 for
the three months ended March 31, 1999, we made no provision for loan losses. The
allowance for loan losses decreased to $470,000, or 70.9% of total nonperforming
loans at March 31, 2000 from $472,000, or 88.7% of total nonperforming loans at
June 30, 1999. The amount of the allowance is based on estimates and the
ultimate losses may vary from such estimates. Management assesses the allowance
for loan losses on a quarterly basis and make provisions for loan losses as
necessary in order to maintain the adequacy of the allowance. While management
uses available information to recognize losses on loans, future loan loss
provisions may be necessary based on changes in economic conditions. In
addition, various regulatory agencies, as an integral part of their examination
process, periodically review the allowance for loan losses and may require us to
recognize additional provisions based on their judgment of information available
to them at the time of their examination. Management believes that the allowance
for loan losses at March 31, 2000 and June 30, 1999 was adequate.
Other Income. Total other income includes service charges and fees. Total
other income increased by $29,000, or 42.6%, to $97,000 from $68,000. Service
charges and fees increased by $29,000 primarily due to ATM fee income and
deposit account service charges.
Other Expense. Total other expense decreased by $5,000, or .7%, to $715,000
for the three months ended March 31, 2000 from $720,000 for the three months
ended March 31, 1999. Salaries and benefits expense increased by $15,000,
primarily due to a $10,000 increase in employee compensation, and a $7,000
8
<PAGE>
decrease in the deferral of loan origination costs, as new loan originations
decreased during the latter period. Data processing fees increased by $14,000,
and were partially offset by a $13,000 decrease in federal insurance premiums
and other insurance expense as the Federal Deposit Insurance Corporation
("FDIC") assessment rate for Savings Association Insurance Fund ("SAIF") insured
institutions was lowered effective January 1, 2000.
Provision for Income Taxes. The provision for income taxes increased to
$122, or 34.6% of net income before income taxes, from $101,000, or 34.6% of net
income before income taxes. The increase in the provision resulted from an
increase in net income before income taxes.
Comparison of Operating Results for the Nine Months Ended March 31, 2000 and
1999
General. Net income increased by $134,000, or 27.6%, to $619,000 for the
nine months ended March 31, 2000, from $485,000 for the nine months ended March
31, 1999. The increase resulted from an increase in net interest income and
other income, partially offset by an increase in other expense and the provision
for income taxes.
Interest Income. Interest income decreased by $399,000, or 4.8%, to $7.9
million for the nine months ended March 31, 2000 from $8.3 million for the nine
months ended March 31, 1999. The decrease resulted from a decrease in interest
on securities and other interest-earning assets, partially offset by an increase
in interest and fees on loans. Interest and fees on loans receivable increased
by $113,000, or 1.7%. The increase resulted from a $5.9 million, or 5.3%,
increase in the average balance of loans receivable to $117.0 million from
$111.1 million, partially offset by a 28 basis point decrease in the average
yield on the loan portfolio to 7.79% from 8.07%. The increase in average balance
of loans receivable resulted from a net increase in both mortgage and consumer
and other loans. The decrease in the average yield resulted from the prepayment
of higher yielding loans and a decrease in deferred loan fee income. Interest on
securities, including mortgage-backed securities and other interest-earning
assets, decreased by $512,000, or 31.8%, to $1.1 million from $1.6 million. This
decrease resulted from a $8.2 million, or 29.0%, decrease in the average balance
of securities due to maturities and repayment of principal, partially offset by
a 13 basis point increase in the average yield on securities. The average
balance of other interest-earning assets decreased by $5.1 million, the effects
of which were partially offset by a 94 basis point increase in the average
yield.
Interest Expense. Interest expense on deposits decreased by $589,000, or
11.3%, to $4.6 million for the nine months ended March 31, 2000 from $5.2
million for the nine months ended March 31, 1999. Interest expense on
transaction and savings accounts decreased to $310,000 from $343,000, as the
average balance of transaction and savings accounts remained relatively stable
at $18.1 million, and the average cost decreased to 2.28% from 2.53%. Interest
expense on certificate accounts decreased by $556,000, to $4.3 million from $4.9
million, as the average balance of certificate accounts decreased by $5.6
million and the average cost decreased by 40 basis points. The decrease in
certificate accounts resulted in part from a decrease in public funds. Interest
expense on borrowings increased by $27,000, to $401,000 from $374,000, as the
average balance decreased by $80,000, offset by an increase in the average cost
of 40 basis points.
Net Interest Income. Net interest income increased by $163,000, or 5.9%, to
$2.9 million for the nine months ended March 31, 2000 from $2.8 million for the
nine months ended March 31, 1999. The net interest rate spread, the difference
between the yield on average total interest-earning assets and the cost of
average total interest-bearing liabilities, increased by 35 basis points to
2.33% from 1.98%.
9
<PAGE>
Provision for Loan Losses. Based on the factors described above, and based
on net loan charge-offs of $2,000 and $9,000 during the nine months ended March
31, 2000 and 1999, respectively, we made no provision for loan losses in either
period. Management believes that the allowance for loan losses at March 31, 2000
was adequate.
Other Income. Total other income increased by $103,000, or 55.4%, to
$289,000 from $186,000. Service charges and fees increased by $63,000 primarily
due to ATM fee income and deposit account service charges. Gain on sale of
premises and equipment totaled $29,000 for the nine months ended March 31, 2000,
as compared to no gain for the previous period as a result of the sale of land.
Other Expenses. Total other expense increased by $22,000, or 1.0%, to $2.3
million for the nine months ended March 31, 2000 from $2.3 million for the nine
months ended March 31, 1999. Salaries and benefits expense increased by $49,000,
primarily due to a $12,000 increase in compensation expense, and a $27,000
decrease in the deferral of loan origination costs, as new loan originations
decreased during the latter period. Data processing fees decreased by $68,000
due to Alamogordo Federal's conversion of its data processing system during the
earlier period. Federal insurance premiums and other insurance expense decreased
$17,000, primarily due to the fact that the FDIC assessment rate for
SAIF-insured institutions was lowered effective January 1, 2000. Advertising
expense increased by $24,000 primarily due to additional marketing programs.
Provision for Income Taxes. The provision for income taxes increased to
$316,000, or 33.8% of net income before income taxes, from $206,000, or 29.8% of
net income before income taxes. The increase in the provision resulted from an
increase in net income before income taxes. The increase in effective tax rate
resulted from a decrease in income from tax-exempt securities and other changes
in deferred tax items.
Liquidity
Alamogordo Federal is required to maintain levels of liquid assets as
defined by OTS regulations. This requirement, which varies from time to time
(currently set at 4%) depending upon economic conditions and deposit flows, is
based upon a percentage of deposits and short-term borrowings. Alamogordo
Federal's liquidity ratio averaged 14.15% during the quarter ended March 31,
2000, and was 10.09% at March 31, 2000.
PART II. OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
There are various claims and lawsuits in which Alamogordo Financial is
periodically involved incidental to its business. In the opinion of management,
no material loss is expected from any of such pending claims or lawsuits.
ITEM 2. CHANGES IN SECURITIES AND USE OF PROCEEDS
(a) Changes in Securities.
Not applicable.
10
<PAGE>
(b) Use of proceeds.
Not applicable
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
Not applicable.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
None.
ITEM 5. OTHER INFORMATION
None.
ITEM 6. EXHIBITS AND REPORT ON FORM 8-K.
None.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed by the undersigned thereunto
duly authorized.
Alamogordo Financial Corporation
/s/ R. Miles Ledgerwood
Date: May 12, 2000 By: -------------------------------------
R. Miles Ledgerwood
President and Chief Executive Officer
/s/ Norma J. Clute
Date: May 12, 2000 By: -------------------------------------
Norma J. Clute
Vice President and Treasurer
11
<TABLE> <S> <C>
<ARTICLE> 9
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 3-mos
<FISCAL-YEAR-END> Jun-30-2000
<PERIOD-END> Mar-31-2000
<CASH> 1,688
<INT-BEARING-DEPOSITS> 5,530
<FED-FUNDS-SOLD> 0
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 15,523
<INVESTMENTS-CARRYING> 2,098
<INVESTMENTS-MARKET> 2,078
<LOANS> 117,096
<ALLOWANCE> 470
<TOTAL-ASSETS> 153,803
<DEPOSITS> 122,796
<SHORT-TERM> 7,000
<LIABILITIES-OTHER> 1,132
<LONG-TERM> 0
0
0
<COMMON> 0
<OTHER-SE> 22,875
<TOTAL-LIABILITIES-AND-EQUITY> 153,803
<INTEREST-LOAN> 2,258
<INTEREST-INVEST> 289
<INTEREST-OTHER> 105
<INTEREST-TOTAL> 2,652
<INTEREST-DEPOSIT> 1,530
<INTEREST-EXPENSE> 1,681
<INTEREST-INCOME-NET> 971
<LOAN-LOSSES> 0
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 715
<INCOME-PRETAX> 353
<INCOME-PRE-EXTRAORDINARY> 353
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 231
<EPS-BASIC> 0
<EPS-DILUTED> 0
<YIELD-ACTUAL> 2.71
<LOANS-NON> 663
<LOANS-PAST> 0
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 971
<ALLOWANCE-OPEN> 469
<CHARGE-OFFS> 1
<RECOVERIES> 2
<ALLOWANCE-CLOSE> 470
<ALLOWANCE-DOMESTIC> 470
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
