U. S. Securities and Exchange Commission
Washington, D.C. 20549
Form 10-QSB
(Mark One)
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the quarterly period ended June 30,_1996
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT
For the transition period from __________ to __________
Commission file number 0-10241
AMERICAN_BANCSHARES_OF_HOUMA,_INC.
(Exact name of registrant as specified in its charter)
LOUISIANA 72-0695017
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
801_Barrow_Street,_Houma,_Louisiana 70360
(Address of principal executive offices)
Issuer's telephone number: (504)_872-1434
Check whether the issuer (1) filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act during the past 12 months (or for
such shorter period that the registrant was required to file such reports),
and (2) has been subject to such filing requirements for the past 90 days.
Yes _X_. No ___.
The number of shares of common stock, $3.00 par value,
outstanding as of June 30, 1996, was 229,564.
Transitional Small Business Disclosure Format (check one): Yes ___.
No _X_.
<PAGE>
TABLE OF CONTENTS
PART I--FINANCIAL INFORMATION
Item 1. Financial Statements.
Consolidated Statements of Condition -
June 30, 1996 and December 31, 1995.............................
Consolidated Statements of Income -
Periods Ended June 30, 1996 and 1995............................
Consolidated Statements of Changes in Stockholders' Equity -
Periods Ended June 30, 1996 and 1995............................
Consolidated Statements of Cash Flows -
Periods Ended June 30, 1996 and 1995............................
Notes to Consolidated Financial Statements........................
Item 2. Management's Discussion and Analysis.......................
PART II--OTHER INFORMATION
Item 1. Legal Proceedings..........................................
Item 6. Exhibits and Reports on Form 8-K...........................
SIGNATURES............................................................
<PAGE>
<TABLE>
AMERICAN BANCSHARES OF HOUMA, INC.
Consolidated Statements of Condition
June 30, 1996 and December 31, 1995
Thousands of Dollars
Unaudited
<CAPTION>
June 30, Dec. 31,
__1996__ __1995__
<S> <C> <C>
ASSETS
Cash and due from banks.......................................... $ 4,625 $ 6,569
Federal funds sold............................................... ____775 __1,300
Total cash and cash equivalents....................... 5,400 7,869
Investment securities:
Available-for-sale securities at fair value (amortized cost
of $19,513 and $22,889 in 1996 and 1995, respectively)....... 19,365 23,205
Held-to-maturity securities at amortized cost (fair value of
$3,466 and $3,589 in 1996 and 1995, respectively)............ __3,473 __3,547
Total investment securities........................... 22,838 26,752
Loans (note 2)................................................... 58,061 50,980
Less: Unearned income......................................... (198) (167)
Allowance for loan losses............................... _(1,285) ___(993)
Loans, net............................................ 56,578 49,820
Premises and equipment........................................... 2,076 2,034
Real estate acquired by foreclosure.............................. 8 303
Other assets..................................................... __1,352 __1,432
Total assets........................................ $ 88,252 $ 88,210
======= =======
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits (Note 3):
Noninterest-bearing............................................ $ 17,421 $ 18,076
Interest-bearing............................................... _61,325 _60,632
Total deposits........................................ 78,746 78,708
Federal funds purchased and securities sold under
repurchase agreements.......................................... --- 200
Other liabilities................................................ ____678 ____622
Total liabilities..................................... _79,424 _79,530
Stockholders' equity:
Common stock ($3.00 par value; 1,000,000 shares
authorized; 258,737 shares issued)........................... 776 776
Paid-in capital................................................ 4,263 4,263
Retained earnings.............................................. 4,820 4,366
Net unrealized gains (losses) on available-for-sale securities. (97) 209
Treasury stock (Cost of 29,173 shares)......................... ___(934) __(934)
Total stockholders' equity............................ __8,828 __8,680
Total liabilities and stockholders' equity.......... $ 88,252 $ 88,210
======= =======
See notes to consolidated financial statements.
</TABLE>
<PAGE>
<TABLE>
AMERICAN BANCSHARES OF HOUMA, INC.
Consolidated Statements of Income
Periods Ended June 30, 1996 and 1995
Thousands of Dollars Except for Per Share Data
Unaudited
<CAPTION>
Three_Months_Ended _Six_Months_Ended_
June 30, June 30, June 30, June 30,
__1996__ __1995__ __1996__ __1995__
<S> <C> <C> <C> <C>
Interest income:
Interest and fees on loans.............. $ 1,245 $ 1,121 $ 2,430 $ 2,228
Taxable securities income............... 357 341 740 648
Nontaxable securities income............ 33 16 67 33
Interest on federal funds sold.......... ______9 _____44 _____32 _____80
Total interest income............... __1,644 __1,522 __3,269 __2,989
Interest expense:
Interest on deposits (Note 3)........... 615 604 1,227 1,170
Interest on federal funds purchased and
securities sold under repurchase
agreements............................ ______5 ______3 ______9 ______5
Total interest expense.............. ____620 ____607 __1,236 __1,175
Net interest income..................... 1,024 915 2,033 1,814
Provisions for loan losses.............. ____250 ____--- ____250 ____---
Net interest income after provisions
for loan losses....................... 774 915 1,783 1,814
Noninterest income, excluding investment
securities gains and losses (Note 4).. 370 314 721 613
Investment securities gains (losses).... 4 --- 4 (1)
Noninterest expense (Note 5)............ ____830 ____894 __1,605 __1,775
Earnings before income taxes............ 318 335 903 651
Provision for income taxes.............. ____105 ____108 ____303 ____197
Net earnings............................ $ 213 $ 227 $ 600 $ 454
======= ======= ======= =======
PER SHARE DATA:
Net earnings............................ $ 0.93 $ 0.99 $ 2.62 $ 1.98
======= ======= ======= =======
Average common shares outstanding....... 229,564 229,564 229,564 229,564
======= ======= ======= =======
See notes to consolidated financial statements.
</TABLE>
<PAGE>
<TABLE>
AMERICAN BANCSHARES OF HOUMA, INC.
Consolidated Statements of Changes in Stockholders' Equity
Six Months Ended June 30, 1996 and 1995
Thousands of Dollars
Unaudited
<CAPTION>
Net unreal-
ized Gains
(Losses) on
Available-
Common Paid-in Retained Treasury for-Sale
Stock_ Capital Earnings _Stock__ Securities_ Total
<S> <C> <C> <C> <C> <C> <C>
Balance at December 31, 1994.. $ 776 4,263 3,602 (934) (183) 7,524
Net earnings.................. --- --- 454 --- --- 454
Dividends ($0.40 per share)... (92) (92)
Change in net unrealized gains
or losses on available-for-
sale securities............. __--- __--- __--- __--- __269 __269
Balance at June 30, 1995...... $ 776 4,263 3,964 (934) 86 8,155
===== ===== ===== ===== ===== =====
Balance at December 31, 1995.. $ 776 4,263 4,366 (934) 209 8,680
Net earnings.................. --- --- 600 --- --- 600
Dividends ($0.64 per share)... (146) (146)
Change in net unrealized gains
or losses on available-for-
sale securities............. __--- __--- __--- __--- _(306) _(306)
Balance at June 30, 1996...... $ 776 4,263 4,820 (934) (97) 8,828
===== ===== ===== ===== ===== =====
See notes to consolidated financial statements.
</TABLE>
<PAGE>
<TABLE>
AMERICAN BANCSHARES OF HOUMA, INC.
Consolidated Statements of Cash Flows
Six Months Ended June 30, 1996 and 1995
Thousands of Dollars
Unaudited
<CAPTION>
_Six_Months_Ended_
June 30, June 30,
__1996__ __1995__
<S> <C> <C>
Cash flows from operating activities:
Interest received....................................... $ 3,379 $ 3,045
Fees and commissions received........................... 762 669
Interest paid........................................... (1,275) (1,081)
Other expenses paid..................................... (1,577) (1,672)
Income taxes paid....................................... __(215) __(199)
Net cash provided by operating activities............. _1,074 ___762
Cash flows from investing activities:
Proceeds from sales of available-for-sale securities.... 4,233 999
Proceeds from paydowns and maturities
of available-for-sale securities...................... 2,137 1,074
Purchases of available-for-sale securities.............. (3,031) (7,052)
Proceeds from paydowns and maturities
of held-to-maturity securities........................ 60 1,203
Loan originations, net of repayments.................... (6,663) 594
Capital expenditures.................................... (158) (164)
Proceeds from sales of foreclosed assets................ 107 61
Net decrease (increase) in other assets................. ____81 ___(51)
Net cash used in investment activities................ (3,234) (3,336)
Cash flows from financing activities:
Net increase (decrease) in deposits..................... 38 (11)
Net increase (decrease) in federal funds purchased and
securities sold under repurchase agreements........... (200) 225
Dividends paid.......................................... (146) ---
Net increase (decrease) in other liabilities............ ____(1) ____(3)
Net cash provided by (used in) financing activities... __(309) ___211
Net decrease in cash and cash equivalents................. (2,469) (2,363)
Cash and cash equivalents at beginning of period.......... 7,869 10,367
Cash and cash equivalents at end of period................ $ 5,400 $ 8,004
====== ======
(continued)
See notes to consolidated financial statements.
</TABLE>
<PAGE>
<TABLE>
AMERICAN BANCSHARES OF HOUMA, INC.
Consolidated Statements of Cash Flows (Continued)
Six Months Ended June 30, 1996 and 1995
Thousands of Dollars
Unaudited
<CAPTION>
Six_Months_Ended
June 30, June 30,
__1996__ __1995__
<S> <C> <C>
Reconciliation of net income to net cash provided
by operating activities:
Net earnings.............................................. $ ___600 $ ___454
Adjustments to reconcile net income to
net cash provided by operating activities:
Provisions for loan losses............................ 250 ---
Investment securities losses (gains).................. (4) 1
Depreciation and amortization of premises
and equipment....................................... 116 93
Losses on disposals of premises and equipment......... --- 1
Write-downs of foreclosed assets...................... 7 22
Losses (gains) on sales of foreclosed assets.......... (127) 4
Decrease in interest receivable....................... 57 14
Amortization of goodwill.............................. 7 7
Net amortization of premiums on investment securities. 54 43
Decrease (increase) in prepaid expenses............... 51 (15)
Increase in accrued expenses.......................... 31 37
Increase (decrease) in interest payable............... (40) 95
Increase (decrease) in current income taxes payable... 75 (4)
Decrease (increase) in net deferred tax asset......... (20) 2
Net increase in deferred loan fees
and other unearned income........................... ____17 _____8
Total adjustments................................. ___474 ___308
Net cash provided by operating activities................. $ 1,074 $ 762
====== ======
Supplemental schedule of noncash investing activities:
Assets acquired through foreclosure of loans............ $ 53 $ 179
====== ======
Loans made to finance sales of foreclosed assets........ $ 397 $ 82
====== ======
See notes to consolidated financial statements.
</TABLE>
<PAGE>
AMERICAN BANCSHARES OF HOUMA, INC.
Notes to Consolidated Financial Statements
June 30, 1996 and 1995
Unaudited
(1) Summary of Significant Accounting Policies
No significant changes in accounting policies have occurred since the
filing of the Form 10-KSB report on March 29, 1996, for the fiscal
year ended December 31, 1995.
Certain reclassifications have been made to conform to the 1996
presentation of financial information.
(2) Nonperforming Loans and the Allowance for Loan Losses
Nonperforming loans consisted of the following at June 30, 1996, and
December 31, 1995:
(Thousands of Dollars) June 30, Dec. 31,
_1996_ _1995_
Nonaccrual loans.............................. $1,191 $ 78
Loans past due 90 days or more................ 44 112
Restructured loans............................ _1,199 ___949
$2,434 $1,139
====== ======
At June 30, 1996, the Bank had one loan designated as impaired in
accordance with Statement of Financial Accounting Standards No. 114.
The loan was placed in nonaccrual status at the end of the second
quarter and has a carrying value of $1,144,000. Management has
allocated $500,000 of the allowance for loan losses as potential
exposure for this loan, which resulted in a special provision for loan
losses of $250,000 at the end of the second quarter. As of June 30,
1996, no actual charge-offs have been recorded on the loan as the Bank
is still in the process of evaluating its exposure. The average
recorded investment in the impaired loan was approximately $1,226,000
for the six month period ended June 30, 1996, and no interest income
has been recognized on the loan since its impairment.
The following table presents the activity in the allowance for loan
losses for the six month periods ended June 30, 1996 and 1995:
_Six_Months_Ended_
(Thousands of Dollars) June 30, June 30,
__1996__ __1995__
Balance at January 1............. $ 993 $1,133
Provisions charged to expense.... 250 ---
Loans charged off................ (118) (146)
Recoveries on loans.............. _____160 ______50
Balance at June 30............... $1,285 $1,037
======== ========
<PAGE>
(3) Deposits
Included in interest-bearing deposits are certificates of deposit of
$100,000 or more, which totaled $10,931,761 at June 30, 1996, and
$9,408,673 at December 31, 1995.
Interest expense on certificates of deposit of $100,000 or more
totaled $291,124 and $221,459 for the six months ended June 30, 1996
and 1995, respectively.
(4) Noninterest Income
Details of noninterest income, excluding investment securities gains
and losses, are as follows:
<TABLE>
<CAPTION>
Three_Months_Ended _Six_Months_Ended_
(Thousands of Dollars) June 30, June 30, June 30, June 30,
__1996__ __1995__ __1996__ __1995__
<S> <C> <C> <C> <C>
Service charges on deposit accounts..... $ 249 $ 240 $ 494 $ 462
Secondary market loan origination fees.. 45 26 76 41
Other................................... ______76 ______48 _____151 _____110
$ 370 $ 314 $ 721 $ 613
======== ======== ======== ========
</TABLE>
(5) Noninterest Expense
Details of noninterest expense are as follows:
<TABLE>
<CAPTION>
Three_Months_Ended _Six_Months_Ended_
(Thousands of Dollars) June 30, June 30, June 30, June 30,
__1996__ __1995__ __1996__ __1995__
<S> <C> <C> <C> <C>
Salaries and employee benefits.......... $ 413 $ 416 $ 850 $ 841
Net occupancy expense of premises....... 104 99 209 196
Equipment expense....................... 69 62 138 123
Advertising, marketing and promotion.... 24 22 49 43
FDIC and state assessments.............. 5 44 10 88
Stationery, printing and supplies....... 36 35 66 63
Data processing......................... 33 32 67 66
Directors' fees......................... 35 41 76 85
Legal and professional fees............. 28 45 69 71
Postage................................. 19 21 39 39
Telephone expense....................... 16 18 34 34
Net foreclosed assets expense (income).. --- 1 (118) 7
Other................................... ______48 ______58 _____116 _____119
$ 830 $ 894 $ 1,605 $ 1,775
======== ======== ======== ========
</TABLE>
<PAGE>
AMERICAN BANCSHARES OF HOUMA. INC.
Management's Discussion and Analysis
American Bancshares of Houma, Inc. (the Company) is a one-bank holding
company whose primary asset is the 100% ownership of American Bank and
Trust Company of Houma (the Bank) domiciled in Houma, Louisiana. As
previously disclosed in the 1995 Annual Report on Form 10-KSB, the Company
entered into a definitive agreement on February 29, 1996, with Regions
Financial Corporation (Regions) under which the Company will be acquired by
Regions in a tax-free, stock-for-stock transaction. Under the terms of the
agreement, shareholders of the Company will receive 1.66 shares of Regions
common stock for each share of Company common stock. The transaction was
approved by the Company's shareholders at a special meeting held on August
1, 1996. Regulatory approvals are still pending. The merger is expected
to be consummated on September 13, 1996. Regions is a multi-bank regional
holding company headquartered in Birmingham, Alabama. Regions common stock
is traded on the NASDAQ National Market under the symbol "RGBK."
Overview
The Company's earnings for the first half of 1996 equaled $600,000 or
$2.62 per share, representing an increase of 32.0% or $0.64 per share over
the same period in 1995. Second quarter earnings equaled $213,000 or $0.93
per share compared to $227,000 or $0.99 per share in 1995. The Bank made a
special $250,000 provision for loan losses at the end of the second quarter
of 1996 which is discussed further below. During the first quarter of
1996, the Bank recognized a net gain of $127,000 on the sale of the last
significant piece of other real estate owned.
The Bank experienced strong loan demand during the first half of 1996
as total loans, net of unearned income, increased by $7,050,000 or 13.9%.
The increase in loans was funded primarily by decreases in investment
securities and cash and cash equivalents. At June 30, 1996, the Company's
loans to deposits ratio equaled 73.4% compared to 64.6% at December 31,
1995.
At the end of the second quarter of 1996, the bank placed a commercial
loan in the amount of $1,144,000 into nonaccrual status. The loan
originated as an accounts receivable line of credit issued to a
construction company which recently went into default on several
construction projects in progress. As a result of the loan's impairment,
the Bank allocated reserves of $500,000 as potential exposure on the loan,
which resulted in a $250,000 special provision for loan losses. No actual
charge-offs have been recorded on the loan at this time as the Bank is
still in the process of evaluating its exposure.
<PAGE>
Net_Interest_Income
Year-to-date net interest income increased by $219,000 or 12.1% due to
growth in earning assets and increased loan portfolio yields. Compared to
the same period in 1995, average earning assets increased by $6,515,000 or
8.7%. The tax equivalent net interest margin for the period equaled 5.09%
in 1996 compared to 4.90% in 1995.
Detailed analysis of the components of and changes in net interest
income on a taxable equivalent basis is provided in the "Summary of Average
Balance Sheets, Interest, and Interest Rates" and "Comparative Changes in
Interest Income and Expense" tables that follow this discussion.
Allowance_and_Provisions_for_Loan_Losses
As previously stated, the Bank made a special provision for loan
losses of $250,000 at the end of the second quarter of 1996. No regular
provisions were made during the six month periods ending June 30, 1996 and
1995. The $1,285,000 allowance for loan losses (representing 2.2% of the
portfolio) is deemed to be adequate by Bank management. The Bank recorded
year-to-date net recoveries of $42,000 in 1996 compared to net charge-offs
of $96,000 for the same period in 1995. Further information on
nonperforming loans and the allowance for loan losses is provided in note 2
to the consolidated financial statements.
Noninterest_Income
Year-to-date noninterest income, excluding investment securities gains
and losses, increased by 108,000 or 17.6% due primarily to increased
service charge income on deposit accounts, secondary market mortgage loan
origination fees, and other fee income. Service charge income increased
primarily due to a new pricing structure on high-volume commercial accounts
implemented in mid-1995 and also due to increased NSF volume. Other fee
income increased due to the implementation of ATM surcharges at the end of
1995 and also due to increased loan insurance premium income. Details of
other noninterest income are provided in note 4 to the consolidated
financial statements.
Noninterest_Expense
Year-to-date total overhead expenses decreased by $170,000 or 9.6%
primarily due to the $127,000 gain on the sale of other real estate
realized in the firs quarter of 1996 and reduced F.D.I.C. insurance
premiums. A comparative breakdown of overhead expenses is provided in note
5 to the consolidated financial statements.
<PAGE>
Liquidity
The Bank's liquidity ratio, which is a measure of net cash, short-term
and marketable assets as a percent of net deposits and short-term
liabilities, equaled 26.0% at June 30, 1996, compared to 34.0% at December
31, 1995. Management strives to maintain a minimum liquidity ratio of 25%.
The liquidity ratio decreased primarily due to the shifting of funds from
the Bank's investment portfolio to the loan portfolio in order to meet
increased loan demand. Federal funds sold and investments in short-term,
high quality U. S. Government and U. S. Government Agency securities
provide a source of ongoing liquidity for the Bank. The investment
portfolio is structured to provide a ladder of maturities to ensure that
funds will be available when needed. Also, a significant portion of the
investment portfolio is classified as available-for-sale in accordance with
Statement of Financial Accounting Standards No. 115. While the Bank has
the intent to hold these securities indefinitely, they are available for
disposal and may be sold for liquidity as well as other reasons. The Bank
also has the ability to purchase federal funds from correspondent banks and
to pledge securities for other borrowings if necessary to satisfy temporary
liquidity needs. Management believes that these factors place the Bank in
a sound liquidity position.
Capital_Adequacy_&_Dividends
Regulatory capital guidelines set forth minimum ratios of total
capital to total "risk-weighted" assets of 8.0%, "Tier 1" capital to total
"risk-weighted" assets of 4.0%, and a leverage ratio ("Tier 1" capital to
total assets) of 3%. The Federal Deposit Insurance Corporation Improvement
Act of 1991 provides that an institution is "well capitalized" if its total
risk-based capital ratio is 10% or greater, its Tier 1 risk-based capital
ratio is 6% or greater, its leverage ratio is 5% or greater, and the
institution is not subject to a capital directive. Because the Company has
total consolidated assets of less than $150 million and meets certain other
conditions, the guidelines are applied on a bank-only basis. For the Bank,
"Tier 1" capital consists of its shareholders' equity, excluding net
unrealized market gains or losses on available-for-sale securities. Total
capital consists of "Tier 1" capital plus an allowable portion of the
allowance for loan losses. At June 30, 1996, the Bank's total capital to
total "risk-weighted" assets ratio equaled 17.55%, its "Tier 1" capital to
total "risk-weighted" assets ratio equaled 16.28%, and its leverage ratio
equaled 9.74%.
During the first half of 1996, the Company paid two regular quarterly
dividends of $0.32 per share. These total dividends of $0.64 per share
resulted in the payment of $146,000 or 24% of earnings to shareholders.
<PAGE>
<TABLE>
AMERICAN BANCSHARES OF HOUMA, INC.
Summary of Average Balance Sheets, Interest, and Interest Rates
Six Months Ended June 30, 1996 and 1995
Tax Equivalent Basis, Thousands of Dollars
Unaudited
<CAPTION>
____________________Six_Months_Ended_____________________
_______June_30,_1996_______ _______June_30,_1995_______
Average Average Average Average
Balance Interest _Rate__ Balance Interest _Rate__
<S> <C> <C> <C> <C> <C> <C>
ASSETS
INTEREST-EARNING ASSETS:
Loans, net of unearned income* $54,072 ___2,430 9.06% $51,013 ___2,228 8.81%
Investment securities: **
Taxable...................... 23,476 740 6.36 20,016 648 6.53
Nontaxable***................ _2,982 ______98 6.63 _1,439 ______48 6.73
Total investment securities. 26,458 838 6.39 21,455 696 6.54
Federal funds sold............ _1,185 ______32 5.45 _2,732 ______80 5.91
Total interest-earning assets 81,715 ___3,300 8.14 75,200 ___3,004 8.06
NONINTEREST-EARNING ASSETS AND
ALLOWANCE FOR LOAN LOSSES:
Cash and due from banks....... 4,548 4,778
Bank premises and equipment... 2,050 1,987
Other assets.................. 1,355 1,513
Allowance for loan losses..... (1,063) (1,099)
Total assets................ $88,605 $82,379
====== ======
LIABILITIES_AND_EQUITY
INTEREST-BEARING LIABILITIES:
NOW accounts.................. $10,158 81 1.61 $10,416 117 2.27
Money market accounts......... 6,820 86 2.54 7,436 105 2.85
Savings deposits.............. 8,851 100 2.28 9,238 134 2.93
Time deposits................. 35,397 _____960 5.47 30,921 _____814 5.31
Total interest-bearing
deposits................... 61,226 1,227 4.04 58,011 1,170 4.07
Short-term borrowings......... ___274 _______9 6.62 ___135 _______5 7.47
Total interest-bearing
liabilities................ 61,500 ___1,236 4.05 58,146 ___1,175 4.08
NONINTEREST-BEARING LIABILITIES
AND STOCKHOLDERS' EQUITY:
Noninterest-bearing deposits.. 17,518 15,793
Other liabilities............. 789 573
Stockholders' equity.......... _8,798 _7,867
Total liabilities and
stockholders' equity....... $88,605 $82,379
====== ======
Net interest earned on total
interest-earning assets...... $81,715 2,064 5.09% $75,200 1,829 4.90%
====== ======== ====== ========
*Nonaccruing loan balances are included in loans for purposes of this analysis.
**Investment securities are shown at amortized cost, with net market gains or losses on
available-for-sale securities included in other assets.
***Interest and yields on nontaxable investment securities are shown as tax equivalent amounts
based on a 34% federal income tax rate and adjusted for the nondeductibility of certain
interest expense incurred to carry tax exempt obligations.
</TABLE>
<PAGE>
<TABLE>
AMERICAN BANCSHARES OF HOUMA, INC.
Comparative Changes in Interest Income and Expense
For the Six Months Ended June 30, 1996 and 1995
Tax Equivalent Basis, Thousands of Dollars
Thousands of Dollars
Unaudited
<CAPTION>
1996 Compared to 1995 1995 Compared to 1994
Increase_(Decrease)_Due_To Increase_(Decrease)_Due_To
Change Change Change Change
in in in in
Volume _Rate_ Total Volume _Rate_ Total
<S> <C> <C> <C> <C> <C> <C>
INTEREST_INCOME
Loans........................ $__136 ____66 __202 $__391 ____72 __463
Investment securities:
Taxable..................... 109 (17) 92 (105) (1) (106)
Nontaxable.................. ___51 ____(1) ___50 ___29 ___--- ___29
Total investments.......... 160 (18) 142 (76) (1) (77)
Federal funds sold........... __(42) ____(6) __(48) ___(2) ____34 ___32
Total interest income...... __254 ____42 __296 __313 ___105 __418
INTEREST_EXPENSE
Interest-bearing deposits:
NOW accounts................ (3) (33) (36) (2) 15 13
Money market accounts....... (8) (11) (19) (12) 10 (2)
Savings deposits............ (5) (29) (34) (8) 11 3
Time deposits............... __121 ____25 __146 __169 ___200 __369
Total interest-bearing
deposits.................. 105 (48) 57 147 236 383
Short-term borrowings....... ____5 ____(1) ____4 ____1 ___--- ____1
Total interest expense..... __110 ___(49) ___61 __148 ___236 __384
Net interest income........ $ 144 91 235 $ 165 (131) 34
===== ====== ===== ===== ====== =====
NOTE: The change in interest due to both volume and rate has been
allocated to change due to volume and change due to rate in proportion to
the relationship of the absolute dollar amounts of change in each.
</TABLE>
<PAGE>
PART II - OTHER INFORMATION
Item_1._Legal_Proceedings.
No material developments have occurred in the legal proceedings
previously disclosed in the 1995 Annual Report on Form 10-KSB.
Item_6._Exhibits_and_Reports_on_Form_8-K.
During the quarter ended June 30, 1996, no reports on Form 8-K have
been filed.
SIGNATURES
In accordance with the requirements of the Exchange Act, the
registrant caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
American_Bancshares_of_Houma,_Inc.
(Registrant)
Date: August_14,_1996 /s/_Robert_W._Boquet______________
Robert W. Boquet
President and C.E.O.
Principal Financial Officer
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