<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 10-Q
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 1997
OR
[ ] 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 [ ]
FIRST DECATUR BANCSHARES, INC.
(Exact name of registrant as specified in its charter)
DELAWARE 33-80333 37-1085161
(State or other jurisdiction (Commission File (I.R.S. Employer
of incorporation) Number) Identification No.)
130 NORTH WATER STREET, DECATUR, IL 62523
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code 217-424-1111
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding twelve 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 ninety days.
Yes X No .
2,888,562 shares of the Registrant's common stock, par value $.01 per share,
were outstanding at June 30, 1997.
<PAGE>
FIRST DECATUR BANCSHARES, INC.
FORM 10-Q FOR THREE AND SIX MONTHS ENDED JUNE 30, 1997
INDEX
PAGE
PART I - FINANCIAL INFORMATION . . . . . . . . . . . . . . . . . . 1
Item 1. Condensed Consolidated Financial Statements . . 1
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations . . . . . . . 6
PART II - OTHER INFORMATION . . . . . . . . . . . . . . . . . . . . 10
Item 1. Legal Proceedings . . . . . . . . . . . . . . . . 10
Item 2. Changes in Securities . . . . . . . . . . . . . . 10
Item 3. Defaults upon Senior Securities . . . . . . . . . 10
Item 4. Submission of Matters to a Vote of Security Holders 10
Item 5. Other Information . . . . . . . . . . . . . . . . 10
Item 6. Exhibits and Reports on Form 8-K . . . . . . . . 10
SIGNATURES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
<PAGE>
PART 1 - FINANCIAL INFORMATION
ITEM 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FIRST DECATUR BANCSHARES, INC.
CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
<TABLE>
<CAPTION>
June 30, December 31,
1997 1996
_____________ _____________
(Unaudited)
<S> <C> <C>
Assets
Cash and due from banks $ 34,421 $ 32,818
Federal funds sold 105 15,770
Cash and cash equivalents 34,526 48,588
Securities available for sale 91,121 94,352
Securities held to maturity 34,058 36,790
Loans, net 209,853 196,514
Premises and equipment 9,661 10,166
Other assets 8,781 7,713
_____________ _____________
Total assets $ 388,000 $ 394,123
============= =============
Liabilities
Deposits
Noninterest bearing $ 53,240 $ 54,673
Interest bearing 260,810 265,489
------------- -------------
Total Deposits 314,050 320,162
Federal funds purchases and securities sold under
repurchase agreements 14,366 16,969
Federal Home Loan Bank loans 2,977 2,500
U.S. Treasury demand notes 3,083 2,333
Other liabilities 3,164 3,664
------------- -------------
Total liabilities 337,640 345,628
------------- -------------
Stockholders' Equity
Preferred stock, no par value. Authorized 200,000
shares, none issued or outstanding
Common stock, $.01 par value. Authorized 5,000,000
shares; Issued 2,909,397 shares of which 20,835 shares and
22,361 shares were held as treasury stock 29 29
Surplus 7,858 7,854
Paid-in-capital - phantom stock 171 146
Retained earnings 42,631 40,798
Net unrealized gain on securities available for sale 100 133
------------- -------------
50,789 48,960
Treasury stock, at cost (429) (465)
------------- -------------
Total stockholders' equity 50,360 48,495
------------- -------------
Total liabilities and stockholders' equity $ 388,000 $ 394,123
============= =============
</TABLE>
Page 1
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FIRST DECATUR BANCSHARES, INC.
CONSOLIDATED STATEMENTS OF INCOME
(IN THOUSANDS EXCEPT PER SHARE DATA)
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
June 30 June 30 June 30 June 30
1997 1996 1997 1996
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
___________ ___________ ___________ ___________
<S> <C> <C> <C> <C>
Interest Income
Interest on loans $ 4,437 $ 4,105 $ 8,826 $ 8,182
Interest on investments 1,925 2,051 3,918 4,097
Interest on federal funds sold 106 60 177 140
Other interest income 32 26 67 61
___________ ___________ ___________ ___________
Total interest income 6,500 6,242 12,988 12,480
___________ ___________ ___________ ___________
Interest Expense
Interest on deposits 2,754 2,690 5,403 5,481
Interest on borrowings 95 119 223 208
___________ ___________ ___________ ___________
Total interest expense 2,849 2,809 5,626 5,689
___________ ___________ ___________ ___________
Net Interest Income 3,651 3,433 7,362 6,791
Provision for loan losses 136 75 232 152
___________ ___________ ___________ ___________
Net Interest Income After Provision for
Loan Losses 3,515 3,358 7,130 6,639
----------- ----------- ----------- -----------
Other Income
Trust fees 379 363 748 715
Loan fee income 108 68 186 159
Remittance processing fees 974 1,463 2,091 3,250
Service charges on deposit accounts 278 277 534 546
Security transactions, net 14 (11) 29 (11)
Other 215 192 515 384
----------- ----------- ----------- -----------
Total other income 1,968 2,352 4,103 5,043
----------- ----------- ----------- -----------
Other Expenses
Salaries and employee benefits 2,013 2,009 4,039 4,333
Net occupancy 269 294 548 585
Equipment expenses 508 667 1,194 1,295
Professional fees 94 331 185 425
Data processing fees 88 98 148 135
Supplies 91 79 193 271
Service charges from corresponding banks 134 200 265 444
Other operating expenses 540 542 1,064 1,053
----------- ----------- ----------- -----------
Total other expenses 3,737 4,220 7,636 8,541
----------- ----------- ----------- -----------
Income Before Income Tax 1,746 1,490 3,597 3,141
Income tax expense 544 469 1,128 988
----------- ----------- ----------- -----------
Net Income $ 1,202 $ 1,021 $ 2,469 $ 2,153
=========== =========== =========== ===========
Net Income Per Share $ 0.42 $ 0.35 $ 0.85 $ 0.74
Dividends Per Share 0.11 0.11 0.22 0.22
Weighted Average Shares Outstanding 2,892,943 2,902,009 2,890,390 2,901,974
</TABLE>
Page 2
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FIRST DECATUR BANCSHARES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(IN THOUSANDS)
<TABLE>
<CAPTION>
Six Months Ended
June 30, June 30,
1997 1996
(Unaudited) (Unaudited)
------------ ------------
<S> <C> <C>
Cash flows from operating activities:
Net cash provided by operating activities $ 2,234 $ 2,443
Cash flows from investing activities:
Purchases of securities available for sale (13,399) (11,135)
Proceeds from maturities of securities available for sale 10,460 5,828
Proceeds from sales of securities available for sale 5,994 2,999
Purchases of securities held to maturity (2,135) (1,872)
Proceeds from maturities of securities held to maturity 4,682 5,667
Net change in loans (13,571) (6,551)
Purchases of premises and equipment (243) (352)
------------ ------------
Net cash used by investing activities (8,212) (5,416)
------------ ------------
Cash flows from financing activities:
Net change in
Noninterest-bearing, interest-bearing demand and savings deposits (2,151) (4,117)
Certificates of deposit (3,961) 623
Federal funds purchased and securities sold under repurchase
agreements (2,603) 3,832
Federal Home Loan Bank loans 477 3,500
U.S. Treasury demand notes 750 2,232
Cash dividends (636) (869)
Net cash from sale of treasury stock 40 30
------------ ------------
Net cash used by financing activities (8,084) 5,231
------------ ------------
Net increase (decrease) In cash and cash equivalents (14,062) 2,258
Cash and cash equivalents, beginning of period 48,588 38,572
------------ ------------
Cash and cash equivalents, end of period $ 34,526 $ 40,830
============ ============
Supplemental disclosures of cash flow information:
Cash paid during the period for:
Interest $ 5,652 $ 5,728
Income taxes $ 1,152 $ 1,128
</TABLE>
Page 3
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FIRST DECATUR BANCSHARES, INC.
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
BASIS OF PRESENTATION
The interim financial statements have been prepared by First Decatur
Bancshares, Inc. ("Bancshares") pursuant to the rules and regulations of the
Securities and Exchange Commission applicable to quarterly reports on Form 10-
Q. Certain information and footnote disclosures normally included in financial
statements prepared in accordance with generally accepted accounting principles
have been condensed or omitted pursuant to such rules and regulations. These
financial statements should be read in conjunction with the audited
consolidated financial statements and related notes and schedules included in
Bancshares' Form 10-K for 1996 filed on March 31, 1997, registration statement
filed on Form S-4 dated February 6, 1996, and Form 8-K for the acquisition of
First Shelby Financial Group, Inc. filed on April 1, 1996.
The results for the interim periods are not necessarily indicative of the
results of operations that may be expected for the fiscal year. In the opinion
of management, the information furnished reflects all adjustments which are of
a normal recurring nature and are necessary for a fair presentation of
Bancshares' financial position, results of operations and cash flows for the
period presented. Such adjustments were of a normal recurring nature.
The consolidated financial statements include the accounts of Bancshares
and its wholly-owned subsidiaries. All significant intercompany accounts and
transactions have been eliminated.
ACQUISITION
On April 1, 1996, Bancshares completed the acquisition of First Shelby
Financial Group, Inc. ("First Shelby"), a bank holding company located in
Shelbyville, Illinois, and its subsidiary bank, First Trust Bank of Shelbyville
("Shelby Bank"). Bancshares issued 695,852 shares of its common stock in
exchange for all of the issued and outstanding shares of First Shelby. Cash of
$124,200 was paid to one First Shelby dissenting shareholder for 5,481 shares.
No other cash, except for fractional shares, was paid in the transaction.
This transaction has been accounted for as a pooling of interest and
accordingly, financial information preceding the date of acquisition has been
restated to include the financial position and results of operations of First
Shelby Financial Group, Inc. and its subsidiary First Trust Bank of
Shelbyville.
On May 13, 1997, First Shelby was dissolved and its subsidiary, First
Trust Bank of Shelbyville, is now a wholly owned subsidiary of Bancshares. The
net assets of First Shelby totaled $11,492,000 on May 13, 1997 and were
transferred to Bancshares.
NEW ACCOUNTING PRONOUNCEMENTS
As of January 1, 1996, Bancshares adopted the provisions of Statement of
Financial Accounting Standards ("SFAS") No. 122, "Accounting for Mortgage
Servicing Rights". This statement requires the capitalization of retained
mortgage servicing rights on originated or purchased loans by allocating the
total cost of the mortgage loans between the mortgage servicing
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rights and the loans (without the servicing rights) based on their fair values.
SFAS No. 122 was superseded during 1996 by SFAS No. 125, "Accounting for
Transfers and Servicing of Financial Assets and Extinquishment of Liabilities".
SFAS No. 125 (as did SFAS No. 122) requires the assessment of impairment of
capitalized mortgage servicing rights and requires that impairment be recognized
through a valuation allowance based on the fair value of those rights. The
adoption of SFAS No.125 by Bancshares resulted in $101,000 of mortgage servicing
rights being capitalized, net of amortization for the year ended December 31,
1996. For the six months ended June 30, 1997, an additional $36,000,
net of amortization, has been capitalized.
The Financial Accounting Standards Board has issued SFAS No. 123,
"Accounting for Stock-based Compensation". SFAS No. 123 encourages, but does
not require, companies to recognize compensation expense for grants of stock,
stock options and other equity instruments based on the fair value of those
instruments. SFAS No. 123 permits a company to continue the accounting for
stock-based compensation prescribed in Accounting Principles Board Opinion No.
25, "Accounting for Stock Issued to Employees". If a company elects to stay
with Opinion No. 25, pro forma disclosures of net income are required in the
notes to the financial statements as if the provisions of SFAS No. 123 had been
used to measure stock-based compensation. Bancshares has elected to continue
to measure compensation costs using Opinion No. 25. There are no pro forma
disclosures required pursuant to SFAS No. 123, as no awards were granted in
1996. Also, no awards were granted in the first or second quarter of 1997.
SFAS No. 125 provides consistent standards for distinquishing transfers of
financial assets that are sales from transfers that are considered borrowings
as well as provides detailed measurement standards for assets and liabilities
included in these transactions. The Statement supersedes FASB Statements No.
76, "Extinguishment of Debt" and No. 77, "Reporting by Transferors for
Transfers of Receivables with Recourse" and No. 122, "Accounting for Mortgage
Servicing Rights", and amends FASB Statement No. 115, "Accounting for Certain
Investments in Debt and Equity Securities", in addition to clarifying or
amending a number of other statements and technical bulletins. Except as
amended by Statement No. 127, this Statement is effective for transfers and
servicing of financial assets and extinguishments of liabilities occurring
after December 31, 1996 and is to be applied prospectively. Earlier or
retroactive application is not permitted.
The FASB was made aware that the volume of certain transactions and the
related changes to information systems and accounting processes that are
necessary to comply with the requirements of Statement No. 125 would make it
extremely difficult, if not impossible, for some affected enterprises to apply
the transfer and collateral provisions of Statement No. 125 to those
transactions as soon as January 1, 1997. As a result, SFAS No. 127 defers for
one year the effective date (a) of paragraph 15 of Statement No. 125 and (b)
for repurchase agreement, dollar-roll, securities lending, and similar
transactions, of paragraphs 9-12 and 237(b) of Statement No. 125.
Statement No. 127 provides additional guidance on the types of
transactions for which the effective date of Statement No. 125 has been
deferred. It also requires that if it is not possible to determine whether a
transfer occurring during calendar-year 1997 is part of a repurchase agreement,
dollar-roll, securities lending, or similar transaction, then paragraphs 9-12
of Statement No. 125 should be applied to that transfer. All provisions of
Statement No. 125 should continue to be applied prospectively, and earlier or
retroactive application is not permitted.
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COMMON SHARES
During the third quarter of 1996, Bancshares' Board of Directors approved
a stock repurchase program which authorizes the repurchase of common shares to
be used for the issuance of shares under Bancshares' employee stock option
plan. The shares will be repurchased from time to time in the open market or
in private transactions. At June 30, 1997, 13,979 shares had been repurchased.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
The following discussion represents management's analysis of Bancshares'
results of operations for the three and six month periods ended June 30, 1997
and 1996 and its consolidated financial condition at June 30, 1997 as compared
to December 31, 1996. This discussion should be read in conjunction with
Bancshares' unaudited condensed consolidated financial statements and notes
thereto.
On April 1, 1996, Bancshares completed the acquisition of First Shelby and
the Shelby Bank. As a result of the merger, First Shelby and the Shelby Bank
became wholly owned subsidiaries of Bancshares. The acquisition was accounted
for as a pooling of interests and, accordingly, the financial condition and
results of operations of Bancshares, First Shelby and the Shelby Bank have been
combined as if the combination had been in effect for each of the periods
presented. Effective May 13, 1997, First Shelby was dissolved, with the net
assets transferred to Bancshares.
RESULTS OF OPERATIONS
SUMMARY OF OPERATIONS
Net income in the second quarter of 1997 increased to $1,202,000, up 18%
from $1,021,000 earned in the same quarter of 1996. Earnings per share for the
quarterly period increased to 42 cents per share, up 20% from 35 cents per
share earned in the second quarter of 1996. For the six months ended June 30,
1997, net income was $2,469,000, up 15% compared to $2,153,000 for the first
half of 1996. Earnings per share for the six month period were 85 cents, up
15% compared to 74 cents in the same period in 1996. Higher earnings in both
periods were primarily due to increases in net interest income. Also, a
reduction in FirsTech contracts resulted in lower remittance processing fees
and contributed to lower salaries, lower employee benefits and lower
correspondent bank charges.
NET INTEREST INCOME
Second quarter net interest income was $3,651,000, an increase of $218,000
or 6% compared with the second quarter of 1996. For the six months ended June
30, 1997, net interest income increased $571,000 or 8% compared to 1996. The
growth in net interest income for both periods was mainly due to increases in
the volume of average earning assets, primarily in the loan area. For the six
months ended June 30, 1997, average earning assets increased $10,684,000 or 3%
compared to the same period in 1996.
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ALLOWANCE AND PROVISION FOR LOAN LOSSES
Asset quality, particularly in the loan area, continues to be an important
concern of Bancshares' management. Both the Decatur Bank and the Shelby Bank
maintain a separate loan review department which continuously reviews problem
and significant loans and the adequacy of the allowance for loan losses.
Separate loan committees of the board of directors at the Decatur Bank and
Shelby Bank meet at least quarterly to review past due loans and problem
credits, lending policies and practices and results of the loan review
department's analyses. The allowance for loan losses is maintained at a level
management believes to be adequate to provide for known and potential risks
inherent in the loan portfolios.
The provision for loan losses during the second quarter of 1997 was
$136,000 compared to $75,000 in 1996. For the six month period ended June 30,
1997, the provision for loan losses were $232,000 compared to $152,000 for the
same period in 1996. The higher provisions for loan losses were primarily due
to higher net chargeoffs in the installment loan area and the increase in total
loans outstanding.
OTHER INCOME
Other income for the three months ended June 30, 1997, decreased $384,000
or 16% compared to the same period in 1996. On a year-to-date basis, other
income decreased $940,000 or 19% compared to the six month period in 1996. For
the three month period, the decrease is attributed to a reduction in remittance
processing income generated by FirsTech as the result of the loss of the
Ameritech contracts offset by an increase in loan fee income. For the six
month period, the decrease is attributed to a reduction in FirsTech remittance
processing income offset by an increase in loan fee income and other income.
For the three and six months ended June 30, 1997, remittance processing
and collecting income generated by FirsTech decreased by $489,000 (33%) and
$1,159,000 (36%), respectively, compared to the same periods in 1996. The
decrease in 1997 is the result of the loss of the Ameritech contracts.
FirsTech's contracts to process payments for Ameritech expired in 1996 and were
not renewed.
Loan fee income for the three month period ended June 30, 1997, increased
$40,000 or 59% over the same period in 1996. On a year to date basis, loan fee
income increased $27,000 or 17% compared to the six month period in 1996. This
increase is mainly attributed to an increase in fees in the commercial and real
estate loan areas as a result of large dollar volume loans in the first half of
1997.
Other income increased $131,000 or 34% for the six months ended June 30,
1997, compared to the same period in 1996. This increase is mainly attributed
to gains on the sale of remittance processing machines by FirsTech and an
increase in brokerage commissions for the first six months of 1997 compared to
1996.
OTHER EXPENSES
Other expenses decreased from $4,220,000 for the three months ended June
30, 1996, to $3,737,000 for the three months ended June 30, 1997. This
represents a $483,000 (11%) decrease and was attributed to decreases in
professional fees, equipment expenses and service
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charges from corresponding banks. For the six months ended June 30, 1997,
other expenses decreased $905,000 or 11% compared to the same period in
1996. This decrease was attributed to decreases in salaries and employee
benefits, professional fees, equipment expenses, supplies, and service charges
from corresponding banks.
Salaries and employee benefits decreased $294,000 or 7% for the first six
months of 1997 compared to the first six months of 1996. This decrease is
mainly due to the reduction of staff at FirsTech during the first quarter of
1996 as a result of the loss of the Ameritech contracts. FirsTech's contracts
to process payments for Ameritech expired in 1996 and were not renewed.
Professional fees decreased $237,000 or 72% for the second quarter of 1997
compared to the second quarter of 1996. For the six months ended June 30,
1997, professional fees decreased $240,000 or 56% compared to the same period
in 1996. The decrease for both periods was attributed to the professional fees
associated with the acquisition of First Shelby that were expensed on April 1,
1996, upon consummation of the acquisition.
Equipment expenses decreased $159,000 or 24% for the second quarter of
1997 compared to the second quarter of 1996. For the six months ended June 30,
1997, equipment expenses decreased $101,000 or 8% compared to the same period
in 1996. The decrease in both periods is mainly attributed to a reduction in
machine maintenance costs as the result of lower usage of equipment due to loss
of the Ameritech contracts. The additional decrease in the second quarter of
1997 was the result of lower depreciation due to the sale of remittance
processing machines by FirsTech.
Supplies decreased $78,000 or 29% for the first half of 1997 compared to
the first half of 1996. The decrease is attributed to increased efficiencies
in technology related to the acquisition of an in-house computer system for the
Decatur Bank and image equipment and software for FirsTech.
For the three months ended June 30, 1997, service charges decreased
$66,000 or 33% compared to the same period in 1996. Service charges decreased
$179,000 or 40% for the first half of 1997 compared to the first half of 1996.
The decrease in both periods is attributed to a reduction in the number of
items processed by FirsTech as a result of the loss of the Ameritech contracts.
INCOME TAXES
Income tax expense increased $75,000 or 16% for the second quarter of 1997
compared to the second quarter of 1996. Income taxes increased $140,000 or 14%
for the first six months of 1997, compared to the first six months of 1996.
Higher income tax expense for both periods was principally due to the increase
in pre-tax earnings. Bancshares' effective tax rate (income tax expense
divided by income before taxes) was 31% as of June 30, 1997 and 1996.
FINANCIAL CONDITION
Bancshares' assets decreased $6,123,000 or 1.6% from December 31, 1996 to
June 30, 1997. This decrease was primarily due to decreases in cash and cash
equivalents and securities offset by an increase in net loans. The reduction
in total assets was offset by a decrease in deposits and federal funds
purchased and securities sold under repurchase agreements.
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CASH AND CASH EQUIVALENTS
Cash and cash equivalents decreased $14,062,000 from December 31, 1996 to
June 30, 1997. This change occurred due to an increase in cash and due from
banks of $1,603,000 offset by a decrease in federal funds sold of $15,665,000.
See the consolidated statement of cash flows for the six months ended June 30,
1997, in the interim financial statements for the details representing the
decrease in cash and cash equivalents. Federal funds sold are of a short-term
nature and provide the needed liquidity to fund loan growth.
SECURITIES
Bancshares' overall investment goal is to maximize earnings while
maintaining liquidity in securities having minimal credit risk. The types and
maturities of securities purchases are primarily based on Bancshares' current
and projected liquidity and interest rate sensitivity positions. The book
value of investment securities decreased by $5,963,000 from December 31, 1996
to June 30,1997. During the first six months of 1997, Bancshares purchased
$15,534,000 ($13,399,000 classified as available-for-sale), sold $5,994,000 of
securities classified as available-for-sale, and had $15,142,000 ($10,460,000
classified as available-for-sale) mature. The decrease in investments was
necessary to fund loan growth for the first six months ended June 30, 1997.
LOANS
Total loans increased by $13,339,000 from December 31, 1996 to June 30,
1997 due mainly to an increase in commercial loans offset by a decrease in
consumer loans. Commercial loans increased by $14,662,000 due to increases in
construction and land development and a long term commercial real estate loan.
Consumer loans decreased by $1,363,000.
DEPOSITS
Total deposits decreased $6,112,000 from December 31, 1996 to June 30,
1997. This decrease is attributed to the cancellation of a $4,000,000
certificate of deposit by the Decatur School District and the cancellation of a
$1,500,000 certificate of deposit by the Village of Mt. Zion.
STOCKHOLDERS' EQUITY
Total stockholders' equity rose $1,865,000 or 4% from December 31, 1996 to
June 30, 1997. The increase is mainly attributed to net income of $2,469,000
less cash dividends of $636,000.
The capital ratios of Bancshares are presently in excess of the
requirements necessary to meet the "well capitalized" capital category
established by bank regulators. At March 31, 1997, Bancshares' consolidated
Tier 1 and total risk-based capital ratios were 19.8% and 21.1%, respectively.
Bancshares' leverage ratio at March 31, 1997, was 13.1%.
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PART II - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
Bancshares is involved from time to time in routine litigation incidental
to its business. However, Bancshares' management believes that it is not a
party to any material pending litigation, which, if decided adversely to
Bancshares, would have a significant negative impact on the business, income,
assets or operation of Bancshares. Bancshares' management is not aware of any
other material threatened litigation which might involve Bancshares.
ITEM 2. CHANGES IN SECURITIES
Not Applicable
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
Not Applicable
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
Not Applicable
ITEM 5. OTHER INFORMATION
Not Applicable
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
Exhibit
NUMBER DESCRIPTION OF EXHIBIT
11 Computation of Per Share Income - Refer to the
Consolidated Statements of Income in the
interim financial statements
27 Financial Data Schedule
(b) Reports on Form 8-K
Not applicable
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SIGNATURES
Pursuant to the requirements 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 DECATUR BANCSHARES, INC.
July 29, 1997 By: /s/ John W. Luttrell
--------------------------------------
John W. Luttrell
President and Chief Executive Officer
July 29, 1997 By: /s/ Craig A. Wells
--------------------------------------
Craig A. Wells
Principal Financial Officer
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WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 9
<MULTIPLIER> 1,000
<CURRENCY> US DOLLARS
<S> <C>
<PERIOD TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> JUN-30-1997
<EXCHANGE-RATE> 1
<CASH> 34,421
<INT-BEARING-DEPOSITS> 260,810
<FED-FUNDS-SOLD> 105
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 91,121
<INVESTMENTS-CARRYING> 34,058
<INVESTMENTS-MARKET> 125,199
<LOANS> 213,188
<ALLOWANCE> 3,335
<TOTAL-ASSETS> 388,000
<DEPOSITS> 314,050
<SHORT-TERM> 17,449
<LIABILITIES-OTHER> 3,164
<LONG-TERM> 2,977
<COMMON> 29
0
0
<OTHER-SE> 50,331
<TOTAL-LIABILITIES-AND-EQUITY> 388,000
<INTEREST-LOAN> 8,826
<INTEREST-INVEST> 3,918
<INTEREST-OTHER> 244
<INTEREST-TOTAL> 12,988
<INTEREST-DEPOSIT> 5,403
<INTEREST-EXPENSE> 5,626
<INTEREST-INCOME-NET> 7,362
<LOAN-LOSSES> 232
<SECURITIES-GAINS> 29
<EXPENSE-OTHER> 7,636
<INCOME-PRETAX> 3,597
<INCOME-PRE-EXTRAORDINARY> 3,597
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 2,469
<EPS-PRIMARY> 0.85
<EPS-DILUTED> 0.85
<YIELD-ACTUAL> 0.04
<LOANS-NON> 57
<LOANS-PAST> 2,555
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 1,483
<ALLOWANCE-OPEN> 3,382
<CHARGE-OFFS> 354
<RECOVERIES> 75
<ALLOWANCE-CLOSE> 3,335
<ALLOWANCE-DOMESTIC> 2,413
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 922
</TABLE>
