10-Q/A
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For Quarter Ended September 30, 1995
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 2-76198
FIRST NATIONAL BANKSHARES, INC.
(Exact Name of Registrant as Specified in Its Charter)
Organized in Louisiana 72-0807084
(State or Other Jurisdiction (IRS Employer Identification No.)
of Incorporation or
Organization)
600 East Main Street, Houma, Louisiana 70360
(Address of Principal Executive Office - Zip Code)
Registrant's telephone number, including area code: (504) 868-1660
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 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 classes of common stock, as of the latest practicable
date.
Class Outstanding
Common Stock ($2.50 par value) 2,017,600 shares
FIRST NATIONAL BANKSHARES, INC.
FORM 10-Q/A
INDEX
Part I. Financial Information:
Item 1. Financial Statements
Consolidated Statements of Condition as of
September 30, 1995 (Restated) and
December 31, 1994 (Restated)
Consolidated Statements of Income - Three
months and nine months ended September 30,
1995 (Restated) and 1994
Consolidated Statements of Cash Flows for
nine months ended September 30,
1995 (Restated) and 1994
Notes to Consolidated Financial Statements
Item 2. Management's Discussion and Analysis
of Financial Condition and Results
of Operations
Part II. Other Information:
Item 4. Submission of Matters to a Vote
of Security Holders
Item 6. Exhibits and Reports on Form 8-K
Signatures
FIRST NATIONAL BANKSHARES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CONDITION
(In thousands)
(Unaudited)
09-30-95 12-31-94*
(AS RESTATED) (AS RESTATED)
ASSETS
Cash and due from banks $ 8,750 $ 6,951
Due from financial institutions - Interest-
bearing 3,483 16,004
Securities held-to-maturity (market value of
$53,976 and $53,632 at September 30, 1995 and
December 31, 1994, respectively) 54,146 56,809
Securities available-for-sale at market value
(amortized cost of $19,882 and $11,217 at
September 30, 1995 and December 31,
1994, respectively) 20,095 11,130
Loans 108,259 93,663
Less: Reserve for possible loan losses 2,697 2,855
Net Loans 105,562 90,808
Premises and equipment 5,411 5,732
Other real estate and foreclosed assets, net 1,037 423
Other assets 9,404 9,150
TOTAL ASSETS $207,888 $197,007
LIABILITIES
Deposits:
Non interest-bearing deposits $ 28,960 $ 27,310
Interest-bearing deposits 159,752 150,898
Total deposits 188,712 178,208
Federal funds purchased & securities sold
under repurchase agreements 1,901 3,634
Accrued interest, taxes and other liabilities 1,345 951
Notes payable 0 89
Dividends payable 101 202
TOTAL LIABILITIES 192,059 183,084
SHAREHOLDERS' EQUITY
Common stock 5,044 5,044
Par value ................................$2.50
Number of shares authorized .........10,000,000
Number of shares outstanding ........ 2,017,600
Additional paid in capital 16,454 16,454
Accumulated deficit (4,002) (5,483)
Net unrealized losses on securities
available-for-sale (1,667) (2,003)
ESOP - deferred compensation 0 (89)
TOTAL SHAREHOLDERS' EQUITY 15,829 13,923
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $207,888 $197,007
*The statement of condition at December 31, 1994 has been taken
from the audited statement of condition at that date. The
accompanying notes are an integral part of these statements.
FIRST NATIONAL BANKSHARES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
(In thousands, except per share data)
Three months ended Nine months ended
09-30-95 09-30-94 09-30-95 09-30-94
(AS (AS
RESTATED) RESTATED)
INTEREST INCOME
Interest and fees on loans $2,615 $2,060 $7,328 $5,841
Interest on securities:
U.S. government securities 1,097 1,021 3,355 2,959
Mortgage-backed securities 86 217 275 620
State and municipal securities 15 14 44 42
Other securities 52 37 153 121
Interest on funds sold 0 0 49 0
Interest on deposits due from
financial institutions 94 0 305 0
Total interest income 3,959 3,398 11,509 9,728
INTEREST EXPENSE
Interest on deposits 1,581 1,191 4,395 3,381
Interest on funds purchased 20 22 51 72
Total interest expense 1,601 1,213 4,446 3,453
Net interest income 2,358 2,185 7,063 6,275
Provision for possible loan losses 0 0 0 (500)
Net interest income after
provision for possible loan losses 2,358 2,185 7,063 6,775
NON-INTEREST INCOME
Service charges on deposit accounts 255 246 749 739
Other commissions and fees 95 73 246 234
Other operating income 15 23 99 106
Securities gains (losses) 0 2 (3) (99)
Trust services income 98 77 286 235
Total non-interest income 463 421 1,377 1,215
NON-INTEREST EXPENSE
Salaries 886 714 2,346 2,115
Employee benefits 141 196 522 613
Net occupancy expense 177 171 492 499
Equipment expense 155 151 480 448
Expense associated with OREO
and problem loans (7) 105 76 274
Other operating expense 566 609 1,989 1,806
Total non-interest expense 1,918 1,946 5,905 5,755
Income before income taxes 903 660 2,535 2,235
Income taxes 304 (3,763) 852 (3,909)
Net income $ 599 $4,423 $1,683 $6,144
Per share data (based on the weighted
average shares outstanding,
2,017,600, during the periods:)
Net income $.30 $2.19 $.83 $3.05
Cash dividends declared $.05 $ .00 $.10 $ .00
The accompanying notes are an integral part of these statements.
FIRST NATIONAL BANKSHARES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Nine months ended September 30,
(In Thousands) 1995 1994
(AS RESTATED)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 1,683 $ 6,144
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation, amortization and accretion 277 464
Provision for loan losses 0 (500)
Provision for losses on other real estate 1 (30)
Deferred income taxes 822 (3,950)
Realized (gains) losses on securities 3 99
(Gains) losses on sale of property (128) 101
(Increase) Decrease in accrued interest receivable 200 (334)
Increase in accrued interest payable 121 36
Increase in other assets (1,448) (247)
Increase (Decrease) in other liabilities 272 (39)
NET CASH PROVIDED BY OPERATING ACTIVITIES 1,803 1,744
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from sales of securities
available-for-sale 0 32,860
Proceeds from maturities and calls of securities -
Held-to-maturity 2,937 23,763
Available-for-sale 8,426 12,749
Purchase of securities -
Held-to-maturity 0 (12,738)
Available-for-sale (17,029) (50,869)
Loans purchased 0 (7,357)
Loans sold (1,069) 0
Net increase in loans (14,512) (975)
Net decrease in short-term investments 12,521 3,100
Proceeds from sale of premises, equipment &
foreclosed property 376 464
Purchases of premises and equipment (122) (351)
NET CASH (USED) PROVIDED BY INVESTING ACTIVITIES (8,472) 646
CASH FLOWS FROM FINANCING ACTIVITIES:
Net increase in non-interest bearing deposits 1,665 4,084
Net decrease in interest bearing deposits
other than certificates of deposits (2,629) (14,133)
Increase in certificates of deposits 11,468 7,140
Increase (decrease) in short-term borrowings (1,733) 1,253
Dividends paid (303) 0
NET CASH (USED) PROVIDED BY FINANCING ACTIVITIES 8,468 (1,656)
NET INCREASE IN CASH AND CASH EQUIVALENTS 1,799 734
Cash and cash equivalents at beginning of period 6,951 7,262
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 8,750 $ 7,996
CASH INTEREST EXPENSE PAID $ 4,325 $ 3,417
The accompanying notes are an integral part of these statements.
FIRST NATIONAL BANKSHARES, INC. AND SUBSIDIARIES
SEPTEMBER 30, 1995
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
NOTE 1: First National Bankshares, Inc. (the Company) is a bank
holding company whose principal subsidiary is the First National
Bank of Houma (First National).
NOTE 2: The Company adopted Statement of Accounting Standards
(SFAS) No. 114, "Accounting by Creditors for Impairment of a
Loan," effective January 1, 1995. SFAS No. 114 requires the
measurement of impaired loans be based on the present value of
expected future cash flows discounted at the loan's effective
interest rate, or at the loan's observable market price or the
fair value of its collateral. SFAS No. 114 does not apply to
large groups of smaller balance homogeneous loans that are
collectively evaluated for impairment. For the Company, loans
collectively evaluated for impairment include all single family
mortgage loans, loans to individuals for household, family and
other consumer expenditures and commercial, industrial, and real
estate loans under a certain dollar amount, excluding loans
which have entered the workout process. The adoption of SFAS
No. 114 did not result in additional provisions for losses due
to the Company's continuing policy of measuring loan impairment
based on methods prescribed in SFAS No. 114.
The Company considers a loan to be impaired when, based upon
current information and events, doubt exists that the Company
will be able to collect all amounts due according to the
contractual terms of the loan agreement. The Company's impaired
loans within the scope of SFAS No. 114 include certain troubled
debt restructurings, and performing and nonperforming major
loans in which full payment of principal or interest is doubtful.
The Company also adopted Statement of Financial Accounting
Standards No. 118, "Accounting by Creditors for Impairment of a
Loan-Income Recognition and Disclosures", effective January 1,
1995. This Statement allows a creditor to use existing methods
for recognizing interest income on impaired loans and thus the
adoption of SFAS No. 114 did not result in any change in the
amount of interest income reported.
The Company's impaired loans and the related allowance amounted
to approximately $3,293,000 and $637,000 at September 30, 1995,
respectively. There was no significant change in these amounts
during the nine months ended September 30, 1995. Interest
income recognized on these loans amounted to approximately
$77,000 for the nine months ended September 30, 1995.
NOTE 3: The accompanying unaudited interim financial statements
have been prepared pursuant to the rules and regulations of the
Securities and Exchange Commission. Certain information and
footnote disclosures required by generally accepted accounting
principles for complete financial statements have been omitted.
It is suggested that these interim statements be read in
conjunction with the restated financial statements and notes
thereto included in the amended 1994 Annual Report on Form
10-K/A of First National Bankshares, Inc.
In the opinion of management, all adjustments (consisting of
only normal recurring adjustments) necessary for a fair
presentation of the information shown have been included.
The foregoing nine months interim results of 1995 are not
necessarily indicative of the results of operations of the full
year 1995.
NOTE 4: Subsequent to the issuance of the Company's 1994
consolidated financial statements, the Company discovered that
an error had been made in the calculation of the valuation
allowance against its deferred tax asset as of December 31,
1994. As a result, the 1994 consolidated financial statements
have been restated from the amounts previously reported to
reflect the revised valuation allowance.
For the period reflected by these financial statements, the
restatement affects the following items:
December 31, 1994
Other Shareholders'
Assets Equity
As Originally Reported $9,675 $14,448
Restatement (525) (525)
As Restated $9,150 $13,923
September 30, 1995
Other Shareholders'
Assets Equity
As Originally Reported $10,169 $16,594
Restatement (765) (765)
As Restated $ 9,404 $15,829
Three Months Ended
September 30, 1995
Income Net
Tax Net Income
Expense Income Per Share
As Originally Reported $138 $765 $0.38
Restatement 166 (166) (0.08)
As Restated $304 $599 $0.30
Nine Months Ended
September 30, 1995
Income Net
Tax Net Income
Expense Income Per Share
As Originally Reported $612 $1,923 $0.95
Restatement 240 (240) (0.12)
As Restated $852 $1,683 $0.83
The foregoing changes are reflected throughout these restated
financial statements. For an indication of the impact of the
restatement on other periods, refer to the restated financial
statements for those periods.
FIRST NATIONAL BANKSHARES, INC. AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF THE RESTATED
CONSOLIDATED STATEMENTS OF INCOME AND
CHANGES IN FINANCIAL POSITION
Introduction
The following discussion and analysis of operations for the
quarter ending September 30, 1995 highlight the changes in
financial position and results of operations of First National
Bankshares, Inc. (the Company). The financial position and
results of operations of the Company for the period indicated
were due primarily to its banking subsidiary, First National
Bank of Houma (First National Bank or the Bank). Management's
discussion should be read in conjunction with the consolidated
financial statements and accompanying notes included in this
quarterly report.
In late 1995, the Company discovered an error had been made in
the calculation of a reduction in the latter part of 1994 of the
valuation allowance against the Company's deferred tax asset.
The error, which resulted in an understatement of the valuation
allowance by $525,000 for the period ending December 31, 1994,
related in part to the order of use of tax loss carryforwards
from 1987 and 1988 and in part to the order of use of bad debt
and other than bad debt tax loss carryforwards from 1990. To
correct the error, the Company is restating its financial
statements for the periods ending December 31, 1994, March 31,
1995, June 30, 1995, and September 30, 1995 and filing with the
Securities and Exchange Commission an amended Annual Report on
Form 10-K/A and amended Quarterly Reports on Form 10-Q/A for
those periods to reflect the restated financial statements.
For the period reflected by this report, the restatement
affects the following items:
December 31, 1994
Other Shareholders'
Assets Equity
As Originally Reported $9,675 $14,448
Restatement (525) (525)
As Restated $9,150 $13,923
September 30, 1995
Other Shareholders'
Assets Equity
As Originally Reported $10,169 $16,594
Restatement (765) (765)
As Restated $ 9,404 $15,829
Three Months Ended
September 30, 1995
Income Net
Tax Net Income
Expense Income Per Share
As Originally Reported $138 $765 $0.38
Restatement 166 (166) (0.08)
As Restated $304 $599 $0.30
Nine Months Ended
September 30, 1995
Income Net
Tax Net Income
Expense Income Per Share
As Originally Reported $612 $1,923 $0.95
Restatement 240 (240) (0.12)
As Restated $852 $1,683 $0.83
The Management's Discussion and Analysis of Financial Condition
and Results of Operations that follows and the financial
statements included herewith have been amended from the original
filing of this report to reflect the foregoing restatement. For
a discussion of the impact of the restatement and for restated
financial statements for other periods, refer to the amended
periodic filings for those periods.
Changes in the Company's Consolidated Financial Position
During the first nine months of 1995, loans increased
$14,596,000, a 15.6 percent increase from year end 1994. That
increase is the result of an increase in the demand for loans
being generated by a more stable economy in our market place, an
officer call program and the Bank's indirect lending program.
Proceeds from securities available-for-sale sold during the
fourth quarter of 1994 were used to purchase U.S. Treasury
obligations in the first half of 1995. This resulted in an
increase of $7,087,000 or a 63.7 percent increase in securities
available-for-sale.
On January 1, 1994, the Company adopted Statement No. 115,
Accounting for Certain Investments in Debt and Equity
Securities. This Statement required securities to be classified
into one of three reporting categories (held-to-maturity,
available-for-sale, or trading). Securities classified as
held-to-maturity are carried at amortized cost. Those
classified as available-for-sale are carried at market value
with the unrealized gain or loss (net of income tax effect)
reflected as a component of shareholders' equity. Those
classified as trading are carried at market value with the
unrealized gain or loss reflected in the statement of income.
In September and November 1994, the Company reclassified
securities with an aggregate amortized cost of $49,324,000 (the
"Reclassified Securities") from the available-for-sale portfolio
to the held-to-maturity portfolio. The $3,005,000 difference
between the estimated market value and the aggregate amortized
cost of the Reclassified Securities as of the date of
reclassification (the "Unrealized Interim Loss") is being
credited back to shareholders' equity over the remaining lives
of the securities, which is currently estimated to be 16 years.
As of September 30, 1995, the after-tax effect of the remaining
Unrealized Interim Loss with respect to the Reclassified
Securities was $1,808,000, which contributed to the total
$1,667,000 net unrealized loss adjustment to shareholders'
equity as of that date. As of December 31, 1994, the after-tax
effect of the remaining Unrealized Interim Loss with respect to
the Reclassified Securities was $1,945,000.
FAS 115 also mandates that investment securities classified as
held-to-maturity be carried at amortized cost. Securities
classified as held-to-maturity at September 30, 1995 had gross
unrealized gains of $367,000 and gross unrealized losses of
$3,265,000 ($2,740,000 of which is the unaccreted amount of the
Unrealized Interim Loss with respect to the Reclassified
Securities as of that date). As of December 31, 1994, gross
unrealized gains and gross unrealized losses in the
held-to-maturity account were $56,000 and $6,181,000,
respectively.
At September 30, 1995 and December 31, 1994, other assets
included $4,666,000 and $5,661,000, respectively, in deferred
tax assets. The reduction in deferred tax assets is
attributable to the use by the Company of net operating loss
carryforwards during the period. To the extent the Company
continues to utilize net operating loss carryforwards in future
periods, there will be further reductions in deferred tax assets.
Non interest bearing deposits reflects an increase of
$1,650,000, or 6.4 percent, from year end 1994. Interest
bearing deposits showed a $8,854,000 increase, a 5.9 percent
increase, during the first nine months of 1995. That increase
was the product of the Bank's decision to be more aggressive and
competitive with interest rates offered for local
interest-bearing deposits.
Other real estate and foreclosed assets increased $614,000 or
145.2 percent from December 31, 1994. A major portion of that
increase, $537,000, was the result of the acquisition of
collateral securing a loan which carried the guarantee of the
Farmers Home Administration (FHA). That guarantee continues to
be effective until the liquidation of the assets acquired.
Results of the Company's Operations
Income before income taxes for the nine month period in 1995
increased $300,000, or 13.4 percent, to $2,535,000 compared to
$2,235,000 for the first nine months of 1994. Net income for
the same period was $1,683,000, a decrease of $4,461,000, or
72.6 percent, from the first nine months of 1994. The decrease
is directly attributable to the Company recording an $852,000
income tax expense in 1995 as compared to recording a $3,909,000
credit to income tax expense in the same period in 1994, and to
the Company's not recording a credit provision for loan losses
in 1995, compared to recording a $500,000 credit provision in
the same period in 1994. In 1993, when the Company changed its
method of accounting for income taxes from the deferred method
to the liability method as required by Statement of Financial
Accounting Standard No. 109, it established a valuation
allowance against its deferred tax assets. This valuation
allowance was established due to the uncertainty of utilizing
prior years' net operating loss carryforwards. During 1994, the
Company reduced its valuation allowance by $3,979,000 based upon
the likelihood it would utilize prior years' net operating loss
carryforwards and decreased its income tax expense by the same
amount. Deferred income taxes reflect the net tax effects of
temporary differences between the carrying amounts of assets and
liabilities for financial reporting purposes and the amounts
used for income tax purposes. During the first nine months of
1995, the Company began utilizing its net operating loss
carryforwards and reduced deferred tax assets by $822,000. The
total provision for income tax expense at September 30, 1995 was
$852,000.
For the nine month period ending September 30, 1995, compared
to the same period in 1994, interest income increased $1,781,000
or 18.3 percent, the result of higher rates earned and increased
volumes of loans. Interest expense increased $993,000 or 28.8
percent, during the same period. The principal reasons for the
increase was the increased balances in interest bearing deposits
and higher rates paid. The net effect was an increase in net
interest income of $788,000, an improvement of 12.6 percent, for
the nine month period ending September 30, 1995 compared to the
same period in 1994.
Non-interest income increased $162,000, a 13.3 percent
increase, when comparing the first nine months of 1995 to 1994.
The increase is directly related to a $51,000 increase in fees
for trust services recorded in 1995 and $99,000 in losses
recorded from securities transactions in 1994. Non-interest
expense increased $150,000 or 2.6 percent during the same
period. The increase reflects the net effect of increases in
salaries and wages, directors fees and professional fees and
decreases in expenses associated with OREO and other problem
loans.
Nonperforming assets decreased $376,000 or 7.6 percent at
September 30, 1995 as compared to December 31, 1994. On
September 30, 1995, loans 90 days or more past due, but still
accruing interest, included loans for $785,000 that are
guaranteed by the Farmers Home Administration. These loans on
December 31, 1994 were included in renegotiated loans still
accruing. Shown below is a schedule of the Company's
nonperforming assets (in thousands):
09-30-95 12-31-94
Loans:
90 days or more past due, but still
accruing interest $ 837 $ 64
Renegotiated loans still accruing 1,251 2,444
Nonaccruing 1,467 2,037
Total nonperforming loans 3,555 4,545
Other real estate and foreclosed
property (net of reserves) 1,037 423
Total nonperforming assets $4,592 $4,968
A credit provision for possible loan losses of $500,000 was
recorded in the second quarter of 1994. The credit provision in
1994 was the result of management's analysis that the then
current allowance for possible loan losses was more than
adequate to cover any potential losses. No credit provision has
been recorded in the first nine months of 1995 and, at this
time, management does not anticipate a credit provision for
possible loan losses in 1995.
When comparing third quarter results of 1995 to 1994, income
before income taxes increased $243,000. Contributing to this
increase was a $112,000 decrease in expenses associated with
other real estate owned and problem loans and a $173,000
improvement in net interest income. Net income for the third
quarter 1995 was $3,824,000 less than the net income for the
third quarter 1994. The reduction in net income is attributable
to the Company recording a $304,000 income tax expense in the
third quarter of 1995 as compared to a $3,763,000 credit to
income tax expense in the same period in 1994 offset somewhat by
the improvements in expenses identified above. Net interest
income before provisions for loan losses reflected an increase
of $173,000 or 7.9 percent. This increase is directly
attributable to the increase in the volume of loans. Non
interest income increased $42,000, a 10.0 percent increase. The
increase is a result of increased fees earned for trust services
in 1995. Non interest expense decreased $28,000 or 1.5 percent.
The decrease was the net effect of increases recorded for
expenses for salaries and employee benefits offset by reduced
expenses associated with OREO and problem loans.
At September 30, 1995, the Company held $44,622,000 or 60%
percent of its securities portfolio in the form of derivative
financial instruments, a decrease of $44,000 from December 31,
1994. The Company's derivative financial instruments are
broadly defined as financial instruments which derive their
value from various indices. Approximately 51 percent of the
Company's derivative financial instruments are subject to
interest rate caps ranging from 9.5 percent to 24.0 percent,
which could adversely impact the yield and interest income that
could be realized should various indices rise above these
interest rate caps. Net interest income will be adversely
impacted in 1995 and may be adversely impacted in subsequent
years as a result of the expiration in the third quarter of 1995
of "teaser rates" on approximately $5,930,000 of derivative
financial instruments. The rates in effect, after the
expiration of "teaser rates," are floating rates which could
increase or decrease in response to changes in interest rates.
Based upon interest rate indices in effect on September 30,
1995, the expiration of "teaser rates" caused the interest rate
to decrease from 7.00 percent to 3.36 percent on $1,791,000 of
securities maturing in July 2000, from 8.00 percent to 3.48
percent on $2,555,000 of securities maturing in August 2003 and
from 11.00 percent to 2.74 percent on $1,584,000 of securities
maturing in September 2008. Assuming interest rate indices
remain as they were on September 30, 1995, the effect of the
expiration of these "teaser rates" would be the reduction in net
interest income for the remainder of 1995 of approximately
$93,000.
Liquidity
The Company has attempted to position itself to meet the
demands of the changing economic conditions with a high ratio of
net liquid assets to net liabilities. At year-end 1994, this
ratio stood at 36.5 percent and on September 30, 1995, 35.3
percent. In an attempt to position itself to meet the demands
of the changing economic conditions, the Company has identified
approximately $20,095,000 in securities available-for-sale which
are carried in the statement of condition at market value. A
schedule of the Company's interest sensitivity/GAP analysis
follows:
INTEREST SENSITIVITY/GAP ANALYSIS
(in thousands)
September 30, 1995 INTEREST RATE SENSITIVITY PERIOD
0-3 Months 4-12 Months 1-5 Years Over 5 Years TOTAL
ASSETS:
Loans $31,084 $12,062 $42,388 $21,258 $106,792
Investments 39,662 15,481 17,330 1,768 74,241
Other 3,483 0 0 0 3,483
Total assets $74,229 $27,543 $59,718 $23,026 $184,516
FUNDING SOURCES:
Interest-bearing
deposits $61,856 $36,621 $21,780 $39,479 $159,736
Short-term funds 1,901 0 0 0 1,901
Long-term funds 0 0 0 0 0
Total funding sources $63,757 $36,621 $21,780 $39,479 $161,637
REPRICING/MATURITY GAP:
Period $10,472 ($9,078) $37,938 ($16,453)
Cumulative $10,472 $1,394 $39,332 $22,879
Period gap/
total assets 5.7% (4.9%) 20.6% (8.9%)
Cumulative gap/
total assets 5.7% 0.8% 21.3% 12.4%
Amounts stated include only fixed and variable rate instruments
in the balance sheet that are still accruing interest. Variable
rate instruments are included in the next period in which they
are subject to change in rate. The principal portion of
scheduled payments on fixed rate instruments are included in the
periods in which they become due or mature. Because changes in
rates paid on interest-bearing demand deposits have lagged
behind changes in rates on other instruments, only 50 percent of
the balance of interest-bearing demand deposits is included in
the first period and 50 percent is included in the last period.
Capital Adequacy
As previously reported in the amended Annual Report on Form
10-K/A for the year ended December 31, 1994, the Company and
First National are subject to the regulatory risk-based capital
guidelines. The applicable risk-based capital ratios are as
follows:
First National Bankshares, Inc. 09-30-95 12-31-94 Regulatory Minimums
Tier 1 Capital/Risk Weighted
Assets Ratio 13.89% 13.38% 4.00%
Total Capital/Risk Weighted
Assets Ratio 15.14% 14.63% 8.00%
Leverage Ratio 8.01% 7.28% 3.00%
First National Bank of Houma 09-30-95 12-31-94 Regulatory Minimums
Tier 1 Capital/Risk Weighted
Assets Ratio 13.81% 13.41% 4.00%
Total Capital/Risk Weighted
Assets Ratio 15.06% 14.66% 8.00%
Leverage Ratio 7.97% 7.30% 3.00%
In January of 1995, the Company paid a cash dividend, which it
had declared in December of 1994, of $.10 per common share.
This was the first dividend the Company paid since 1987. On
June 29, 1995, the Company declared a cash dividend of $.05 per
common share to shareholders of record July 14, 1995 payable
July 26, 1995. Also on August 31, 1995, the Company declared a
cash dividend of $.05 per common share to shareholders of record
September 15, 1995 payable October 4, 1995. The Company was
required to obtain permission from the Federal Reserve Bank
prior to the payment of these dividends.
PART II. OTHER INFORMATION
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
NONE
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
NONE
FIRST NATIONAL BANKSHARES, INC. AND SUBSIDIARIES
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 NATIONAL BANKSHARES, INC.
(Registrant Company)
DATE: February 2, 1996 BY /s/ Jerome H. Mire
JEROME H. MIRE
CHIEF EXECUTIVE OFFICER AND
PRESIDENT
DATE: February 2, 1996 BY /s/ Russell Blanchard
RUSSELL BLANCHARD
CHIEF FINANCIAL OFFICER AND
COMPTROLLER
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