UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q/A
(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, 1997.
[ ] 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 0-18127
AMERICAN BANCORP OF NEVADA
------------------------------------------------------
(Exact name of registrant as specified in its charter)
Nevada 94-2792608
- ------------------------------- ------------------------------------
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
4425 Spring Mountain Road, Las Vegas, Nevada 89102
- -------------------------------------------- ----------
(Address of principal executive offices) (Zip Code)
(702) 362-7222
----------------------------------------------------
(Registrant's telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Sections 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 March 31, 1997:
Common stock, $.05 par value 3,722,247
- ---------------------------- ----------------
Class Number of Shares
<PAGE>
INDEX
PART I - FINANCIAL INFORMATION PAGE NO.
- --------------------------------------------------------------------------------
Condensed Consolidated Statements of Income
Three Months ended March 31, 1997 and 1996
Condensed Consolidated Statements of Condition
March 31, 1997 and December 31, 1996
Condensed Consolidated Statements of Cash Flows
Three Months ended March 31, 1997 and 1996
Notes to Condensed Consolidated Financial Statements
Management's Discussion and Analysis of Financial
Condition and Results of Operations
PART II - OTHER INFORMATION
Signatures
<PAGE>
PART I - FINANCIAL INFORMATION
AMERICAN BANCORP OF NEVADA AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
THREE MONTHS ENDED MARCH 31, 1997 AND 1996
(Dollars in thousands except for earnings per share)
(Unaudited)
For the Three
Months Ended
March 31,
--------------
1997 1996
--------------
INTEREST INCOME
Interest and Fees on Loans ............................... $3,749 $2,761
Interest on Securities ................................... 1,870 1,772
Interest on Federal Funds Sold ........................... 78 115
Interest on Other Interest Bearing Accounts .............. 64 126
------ ------
Total Interest Income .................................... 5,761 4,774
------ ------
INTEREST EXPENSE
Interest on Deposits ..................................... 1,163 1,088
Interest on Securities Sold Under Agreements to Repurchase 449 357
------ ------
Total Interest Expense ................................... 1,612 1,445
------ ------
NET INTEREST INCOME ........................................... 4,149 3,329
Provision for Loan Losses ................................ 200 0
------ ------
NET INTEREST INCOME AFTER PROVISION
FOR LOAN LOSSES .......................................... 3,949 3,329
TOTAL NON-INTEREST INCOME: .................................... 416 532
TOTAL NON-INTEREST EXPENSE: ................................... 3,282 2,162
------ ------
INCOME BEFORE TAXES ........................................... 1,083 1,699
PROVISION FOR INCOME TAXES .................................... 325 477
------ ------
NET INCOME .................................................... $ 758 $1,222
====== ======
NET INCOME PER SHARE .......................................... $ .20 $ .32
====== ======
The accompanying notes are an integral part of these statements.
<PAGE>
AMERICAN BANCORP OF NEVADA AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CONDITION
MARCH 31, 1997 AND DECEMBER 31, 1996
(Dollars in Thousands)
March 31, December 31,
1997 1996
---------------------------
(Unaudited)
ASSETS
Cash and Due From Banks ...................... $ 24,791 $ 36,454
Other Interest Bearing Accounts .............. 816 9,571
Federal Funds Sold ........................... 4,500 8,400
--------- ---------
Total Cash and Cash Equivalents ......... 30,107 54,425
Available-for-sale Securities ................ $ 129,310 $ 121,876
Net Loans .................................... 134,193 125,427
Premises and Fixed Assets, Net ............... 12,833 12,846
Other Assets ................................. 3,840 3,280
--------- ---------
TOTAL ASSETS ................................. $ 310,283 $ 317,854
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits ..................................... $ 236,670 $ 248,596
Securities Sold Under
Agreements to Repurchase ................ 39,143 36,440
Other Liabilities ............................ 2,562 1,167
--------- ---------
TOTAL LIABILITIES ............................ 278,375 286,203
--------- ---------
STOCKHOLDERS' EQUITY
Common Stock ................................. $ 187 $ 186
Surplus ...................................... 28,328 28,294
Retained Earnings ............................ 4,022 3,264
Unrealized Gain (Loss) on
Available-for-sale Securities ............ (520) 16
--------- ---------
32,017 31,760
--------- ---------
Less Treasury Stock, at Cost ................. (109) (109)
--------- ---------
Total Stockholders' Equity ................... 31,908 31,651
--------- ---------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY .................... $ 310,283 $ 317,854
========= =========
The accompanying notes are an integral part of these statements.
<PAGE>
AMERICAN BANCORP OF NEVADA AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
THREE MONTHS ENDED MARCH 31, 1997 AND 1996
(Dollars in Thousands)
(Unaudited)
For the Three
Months Ended
March 31,
--------------------
1997 1996
--------------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Interest received ...................................... $ 5,615 $ 4,769
Other income ........................................... 399 326
Interest paid .......................................... (1,614) (1,435)
Cash paid to suppliers and employees ................... (1,967) (2,097)
Income taxes paid ...................................... 0 (242)
--------------------
Net cash provided by operating activities .............. 2,433 1,321
--------------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from sales and maturities of securities ....... 10,455 29,901
Purchase of securities ................................. (18,771) (27,597)
Net increase in loans made to customers ................ (9,032) (5,292)
Capital expenditures ................................... (215) (696)
--------------------
Net cash used in investing activities .................. (17,563) (3,684)
--------------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Net (decrease) increase in deposits .................... (11,926) 4,642
Net increase (decrease) in federal funds purchased
and securities sold under agreements to repurchase .. 2,703 (5,179)
Other .................................................. 35 57
--------------------
Net cash used in financing activities .................. (9,188) (480)
--------------------
NET DECREASE IN CASH AND
CASH EQUIVALENTS .................................. (24,318) (2,843)
CASH AND CASH EQUIVALENTS
AT JANUARY 1 ...................................... 54,425 49,573
--------------------
CASH AND CASH EQUIVALENTS
AT MARCH 31 ....................................... $ 30,107 $ 46,730
====================
RECONCILIATION OF NET INCOME TO NET
CASH PROVIDED BY OPERATING ACTIVITIES:
Net income ............................................. $ 758 $ 1,222
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization of property and
equipment..................................... 227 173
Amortization of investment security premiums and
accretion of discounts ........................ 73 17
Provision for loan losses ......................... 200 0
Gain on sale of securities ........................ (16) (207)
(Increase) Decrease in other assets ............... (205) 28
Increase in other liabilities ..................... 1,396 88
--------------------
NET CASH PROVIDED BY OPERATING ACTIVITIES .............. $ 2,433 $ 1,321
====================
SUPPLEMENTAL SCHEDULE OF NON-CASH
INVESTING AND FINANCING ACTIVITIES:
Issuance of Common Stock for Stock Dividend ............ $ 0 $ 24
====================
Conversion of Loans to Other Real Estate Owned ......... $ 0 $ 766
====================
The accompanying notes are an integral part of these statements.
<PAGE>
AMERICAN BANCORP OF NEVADA AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
MARCH 31, 1996
(Unaudited)
NOTE A - PRINCIPLES OF CONSOLIDATION
The condensed consolidated financial statements include the parent
holding company, American Bancorp of Nevada, ("Company"), and its
wholly owned subsidiaries, American Bank of Commerce ("Bank"), AmBank
Mortgage Company ("Mortgage Company") and AmBank Financial Company
("Finance Company"). Material intercompany balances and transactions
have been eliminated.
NOTE B - BASIS OF PRESENTATION
In the opinion of management, all adjustments (consisting only of
normal recurring accruals) considered necessary for a fair presentation
have been reflected in the financial statements. The results of
operations for the quarter ended March 31, 1997, are not necessarily
indicative of the results to be expected for the full year.
NOTE C - INCOME PER SHARE
Net Income per common share is based upon the weighted average number
of common and common equivalent shares outstanding, 3,822,339 and
3,772,406 for March 31, 1997 and 1996, respectively.
NOTE D - ACCOUNTING PRONOUNCEMENTS
The Financial Accounting Standards Board ("FASB") has issued Statement
No. 125, Accounting for Transfers and Servicing of Financial Assets and
Extinguishment of Liabilities (as amended by FASB Statement No. 127
which defers implementation of certain provisions of FASB No. 125 to
January 1, 1998). This Statement is effective for transfers and
servicing of financial assets and extinguishment of liabilities
occurring after December 31, 1996, with prospective application.
Management of the Company does not believe the application of the
Statement will have a material affect on the Company's financial
statements.
Emerging Issues Task Force (EITF) Issue No. 96-12 Recognition of
Interest Income and Balance Sheet Classification of Structured Notes,
requires the use of the retrospective interest method of recognizing
income on certain structured note securities. The application of this
consensus applies prospectively to new securities acquired after
November 14, 1996. Management does not believe the application of this
consensus will materially affect the Company's financial position or
results of operations.
Effective for financial statements issued after December 15, 1997, the
Company will be required to implement FASB Statement No. 128, Earnings
per Share. The Statement establishes standards for computing and
presenting earnings per share (EPS) and applies to entities with
publicly held common stock or potential common stock. It replaces the
presentation of primary EPS with a presentation of basic EPS and also
requires dual presentation of basic and diluted EPS on the face of the
income statement for all entities with complex capital structures.
NOTE E - SIGNIFICANT EVENTS AND DEVELOPMENTS
On March 17, 1997, the Company entered into an agreement and plan of
reorganization (the "Agreement") with First Security Corporation
("First Security") of Salt Lake City, Utah. Under the terms of the
Agreement, shareholders of the Company will receive a fixed exchange of
.63 shares of First Security common stock for each share of the
Company's stock, provided that the market value for one share of First
Security common stock is valued between $39 per share and $33 per
share. Such fixed exchange is subject to adjustment if the market value
of First Security common stock is above $39 per share or below $33 per
share prior to the closing of the transaction.
The agreement is subject to the approval of the shareholders of the
Company as well as approval of certain regulatory agencies. Management
anticipates all necessary approvals will be obtained during the late
second quarter of 1997 with the transaction being consummated soon
thereafter.
<PAGE>
ITEM II
AMERICAN BANCORP OF NEVADA AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
The following is management's discussion and analysis of certain significant
factors which have affected the Company's financial position and operating
results during the period in the accompanying condensed consolidated financial
statements.
For the Three Months Ended March 31, 1997
Asset Growth
Total assets decreased $7,571,000 or 23.82% during the first three months of
1997. The primary element of this decline was a $24,318,000 or 44.68% decrease
in total cash and cash equivalents. Total securities available-for-sale
increased $7,434,000 or 6.10% which is the result of purchases of new securities
of approximately $18,771,000 offset by proceeds from sales and maturities of
approximately $10,512,000. Additionally, the Company recorded an unrealized loss
adjustment of approximately $825,000 due to current market conditions. Net Loans
increased $8,766,000 or 6.99% which is the direct result of new loans to
customers. Total deposits and securities sold under agreements to repurchase
decreased $9,223,000 or 3.2% which is due to normal monthly fluctuations.
Interest Income
Total interest income increased $987,000 or 20.67% during the first quarter of
1997 as compared to the first quarter of 1996. It is anticipated that interest
income will continue to grow through the remainder of the year based upon the
continued growth of the Company's loan and investment portfolios. Total interest
income is composed of the following categories:
Interest and fees on loans: Interest and fee income increased $988,000 or 35.78%
during the first quarter of 1997 compared to the same period of the prior year.
This increase is comprised of an increase in interest income of $829,000 coupled
with an increase in fee income of $159,000. The increase in interest income is
due primarily to an increase in the average loan volume of approximately
$37,002,000 or 40.14% offset by a decrease in the average yield from 10.44% in
1996 to 10.02% in 1997. The interest differential resulting from the
fluctuations in volume and yield is approximately $966,000 and ($137,000),
respectively. The increase in fee income is attributable to the overall increase
in loan originations.
Interest on securities: Interest on securities increased $98,000 or 5.53% during
the quarter ended March 31, 1997 compared with the quarter ended March 31, 1996.
This increase is the result of an increase in the average yield to 5.87% in 1997
from 5.47% in 1996, offset by a decrease in the average volume of approximately
$1,994,000 to $127,485,000. The tax equivalent yield increased to 6.14% in 1997
from 5.78% in 1996. Whenever possible, the Company's investment strategy is to
maintain a portfolio with rather short-term maturities. At March 31, 1997, the
portfolio had an average maturity of approximately 2.07 years. Management
continually monitors current market conditions and liquidity needs when
evaluating investment strategies.
Interest on federal funds sold: Interest earned on federal funds sold decreased
$37,000 or 32.17% during the first three months of 1997 compared to the same
period of 1996. This decrease is the result of a decrease in the average volume
of approximately $2,598,000 coupled with a decrease in the average yield to
5.04% in 1997 from 5.24% in 1996.
<PAGE>
Interest on other interest bearing accounts: Other interest bearing accounts
consist solely of money market funds and certificates of deposit whose original
maturity is less than 90 days. Interest earned on these accounts decreased
$62,000 or 49.21% for the first quarter of 1997 compared to the first quarter of
1996. This decrease is the result of a decrease in the average volume of
$4,639,000 coupled with a decrease in the average yield to 4.75% in 1997 from
5.02% during 1996.
Interest Expense
Total interest expense increased $167,000 or 11.56% during the first three
months of 1997 as compared to the first three months of 1996. Total interest
expense is comprised of the following categories:
Interest on deposits: Interest on deposits increased $75,000 or 6.89% during the
first quarter of 1997 compared to the first quarter of 1996. This increase is
the result of an increase in the average volume of interest bearing deposits of
approximately $15,499,000 or 13.18%. The increase in average volume was offset
by a decrease in the average rate to 3.49% in 1997 from 3.70% in 1996.
Interest on securities sold under agreements to repurchase: Interest on
securities sold under agreements to repurchase increased $92,000 or 25.77%
during the first quarter of 1997 compared to the first quarter of 1996. This
increase is attributable to an increase in the average volume of $9,744,000. The
average rate paid of approximately 3.77% did not materially fluctuate during the
quarters under comparison.
Interest Rate Risk
Management attempts to protect earnings from wide shifts in interest rates by
employing the following strategies:
Loans: Approximately 90% of the Bank's loan portfolio is written on an
adjustable basis that floats with the Bank's base rate. Thus, approximately
$122,000,000 reprices immediately upon a change in base.
Investments: The majority of the investment portfolio of the Bank is of a fixed
rate nature. This enables management to provide an underlying level of income
irrespective of changes in rates. Additionally, the average maturity of the
portfolio is approximately 2.07 years. This strategy of maintaining short
maturities provides maximum flexibility in dealing with fluctuating interest
rates.
Deposits: Management discourages use of long term Certificates of Deposit by
consistently paying at or below market rates and not offering greater than one
year maturities. Offering rates for Certificates of Deposit over $100,000 and
less than one year maturity are reviewed weekly for adjustments. At March 31,
1997, approximately 42% of time deposits had a maturity of three months or less.
The above factors, taken into consideration together with the fact that the
Bank's non-interest bearing customer deposits are approximately 42% of total
deposits, provides management the opportunity to maintain favorable net interest
margins under most normal interest rate scenarios.
Loans
The composition of the Company's loan portfolio is as follows:
March 31 December 31
1997 1996
-------- -----------
Real Estate Loans:
Construction ............................ $ 30,522 $ 24,106
Residential ............................. 7,409 11,595
Commercial .............................. 48,667 48,274
-----------------------
86,598 83,975
Commercial, financial and industrial loans ....... 42,123 35,429
Commercial receivables financing ................. 3,570 3,329
Loans to individuals ............................. 4,310 4,978
-----------------------
136,601 127,711
Less unearned net loan fees ...................... (1,038) (973)
-----------------------
Total Loans ...................................... $135,563 $126,738
=======================
<PAGE>
Maturities and Sensitivity of Loans to Changes in Interest Rates
The following table shows the balances of commercial, financial and industrial
loans and real estate - construction loans outstanding as of March 31, 1997 by
maturities, based on remaining scheduled repayments of principal. Also shown are
the balance of loans due after one year, classified according to sensitivity to
changes in interest rates.
MATURITY
One
Through After
One Year Five Five
Or Less Years Years Total
--------------------------------------------
Commercial, Financial and
Industrial ................ $32,000 $ 9,523 $ 600 $42,123
Real Estate-Construction ....... 29,951 571 0 30,522
-------------------------------------------
Total .......................... $61,951 $10,094 $ 600 $72,645
===========================================
The maturity of certain loans may vary due to the Bank's rollover policy. The
Bank will consider extending the maturity of a loan upon receipt of current
financial information and evaluation of the loan performance, the financial
performance of the business, and overall economic conditions. Loans with
maturities so affected have been revised as appropriate in the above table.
INTEREST SENSITIVITY
The following table represents the total amount of commercial, financial and
industrial loans and real estate-construction loans due after one year which (a)
have predetermined interest rates and (b) have floating or adjustable interest
rates.
Loans Due After One Year 1997
- -------------------------------------- -------
Fixed or Predetermined Rate .......... $ 1,296
Floating or Adjustable Rate .......... 9,398
-------
Total ........................ $10,694
=======
Provision for Loan Losses
The provision for loan losses was $200,000 for the quarter ended March 31, 1997,
compared to $0 for the quarter ended March 31, 1996. The allowance for loan
losses stands at 1.01% of total loans at March 31, 1997 compared to 1.03% at
December 31, 1996. Management believes the current allowance is adequate to
satisfy any unanticipated loan losses based upon the historical performance of
the loan portfolio.
Net charged off loans and leases were approximately $141,000 and ($1,000) for
the quarters ended March 31, 1997 and 1996 respectively.
At March 31, 1997, two loans totaling approximately $508,000 were accounted for
on a non-accrual basis. Approximately $19,000 of interest income would have been
recorded during the three months ended March 31, 1997 had the loans been current
in accordance with the original terms. Additionally, four loans totaling
approximately $17,000 were contractually past due 90 days or more as to
principal or interest. No loans were accounted for as "troubled debt
restructurings" as defined in SFAS No. 15. Loans are placed on non-accrual
status when they go over 90 days delinquent or when circumstances indicate that
timely collection of interest is doubtful. Loans over 90 days may be left on
accrual status if a repayment plan has been negotiated and it appears likely
that all interest will be paid. All significant impaired loans have been
evaluated in accordance with FASB Statement No. 114 as amended by FASB Statement
No. 118.
As of March 31, 1997, there are no loans outstanding, excluding those identified
above, which causes management to have serious doubts as to the ability of the
borrower to comply with the loan repayment terms.
<PAGE>
Management reviews portfolio concentration levels on a regular basis and
appraisal reviews are performed to support the values at which loans are carried
in the portfolio. Construction lending is generally focused on entry level and
first move-up homes. Lending for larger, speculative homes is tightly limited to
financially sound borrowers. Commercial real estate lending is generally limited
to owner-occupied properties.
Management reviews the loan loss analysis on a quarterly basis. A percentage of
the allowance is allocated to pass credits, substandard, doubtful, loss and
accounts receivable factoring. Management believes the current allowance of
$1,370,000 is adequate and there is sufficient unallocated allowance to handle
unexpected problems within the portfolio.
The table below details changes in the allowance for loan losses:
Quarter Ended March 31,
------------------------
1997 1996
---------- ----------
Balance, beginning ................................. $1,311,000 $1,243,000
Provision charged to operating expense .... 200,000 0
Recoveries of amounts charged off ......... 9,000 1,000
Less amounts charged off .................. 150,000 0
---------- ----------
Balance, ending .................................... $1,370,000 $1,244,000
========== ==========
The schedule below shows the major categories of loan charge-offs and recoveries
for the quarters ended March 31, 1996 and 1995:
NET CHARGE-OFFS 1997 1996
- --------------- -------- --------
Charge-Offs:
Real estate loans
Construction ............................. $ 0 $ 0
Residential .............................. 0 0
Commercial ............................... 0 0
Commercial, financial and industrial ......... 150,000 0
Commercial receivables financing ............. 0 0
Loans to individuals ......................... 0 0
-------- --------
Total ........................................ 150,000 0
======== ========
Less Recoveries:
Real estate loans
Construction ............................. $ 0 $ 0
Residential .............................. 0 0
Commercial ............................... 0 0
Commercial, financial and industrial ......... 2,000 1,000
Commercial receivables financing ............. 0 0
Loans to individuals ......................... 7,000 0
-------- --------
Total ........................................ 9,000 1,000
-------- --------
Net Charge-Offs ................................... $141,000 ($ 1,000)
======== ========
The table below details the allocation by loan type of the allowance for loan
losses at March 31, 1997:
Amount Percentage
---------- ----------
Real estate loans
Construction ............................... $ 311,984 22.94%
Residential ................................ 26,324 1.19%
Commercial ................................. 480,488 35.33%
Commercial, financial and industrial ............ 466,480 34.30%
Commercial receivables financing ................ 42,568 3.13%
Loans to individuals ............................ 42,156 3.11%
---------- -------
Total ........................................... $1,370,000 100.00%
========== =======
<PAGE>
Non-Interest Income
Total non-interest income for the first three months of 1997 decreased $116,000
or 21.80%, over the same period of 1996. This decrease is due primarily to
realized gains on sales of securities that were recorded during the prior year.
This decrease was offset by increases in trust income and voucher control fees.
Non-Interest Expense
Total non-interest expense increased $1,120,000 or 51.80%, during the first
quarter of 1997 as compared to the first quarter of 1996. This increase is
attributable to increased salaries, wages and employee benefits, advertising and
public relations costs, professional fees and an 845,000 increase in expense
relating to stock appreciation rights due to an increase in the trading price of
the company's common stock.
Liquidity
Management of the Company strives to obtain the highest possible earnings while
maintaining a sound liquidity position. The Company's primary sources of
liquidity are its cash and due from banks, other interest bearing accounts,
federal funds sold, and its investment portfolio. The Company's investment
portfolio had an average balance of approximately $127,485,000 during the
quarter ended March 31, 1997. The average maturity of the portfolio is 2.07
years at March 31, 1997. Federal funds sold maintained an average balance of
approximately $6,185,000 during the quarter ended March 31, 1997. The Company's
liquidity position is further enhanced by its core deposits which represent
approximately 80% of total deposits at March 31, 1997. The Bank avoids the use
of highly sensitive short-term funds such as brokered deposits and believes its
deposits represent funding sources with safety in respect to both liquidity and
earnings. The Company continues to meet the cash flow requirements of customers
who are depositors desiring to withdraw funds and of borrowers requiring
assurance that sufficient funds will be available to meet their credit needs.
The measures of solid liquidity practices such as Total Deposits to Total Assets
and Loans to Deposits are monitored constantly for any adverse trends.
Historically, the Bank's loan to deposit ratio has been low when compared to
industry norms and, conversely, its liquidity ratio has been high. At March 31,
1997, the net loan to deposit ratio was approximately 55%. The liquidity ratio,
which is comprised of cash and cash equivalents, federal funds sold and
unpledged securities as a percent of total demand deposits stood at
approximately 56% at March 31, 1997. Management continuously monitors
outstanding loan commitments and letters of credit for funding needs. At March
31, 1997, outstanding loan commitments and letters of credit were approximately
$70,022,000 and $1,758,000, respectively.
Cash flows from operations remains positive primarily due to favorable interest
rate yields and continued growth in the loan and investment portfolios.
Management expects this trend to continue. Cash flows from investing activities
were negative for the quarter ended March 31, 1997 primarily due to an increase
in loans to customers, coupled with purchases of securities. Cash flows from
financing activities were negative for the quarter ended March 31, 1997 as the
decrease in deposits of approximately $11,926,000 was offset by an increase in
securities sold under agreements to repurchase of approximately $2,703,000.
Capital Resources
Stockholders' equity (exclusive of the net unrealized gain/loss of securities
available for sale) as a percentage of total assets was approximately 10.45% at
March 31, 1997 as compared to 9.95% at December 31, 1996.
At March 31, 1997, the Bank's Tier 1 Core Capital to risk weighted assets was
16.71%, Total Capital to risk weighted assets was 17.43% and the leverage ratio
was 10.04%, all above the current minimum guidelines of 4%, 8% and 4%,
respectively, as established and defined by regulatory authorities.
In addition, the Federal Deposit Insurance Corporation Improvement Act of 1991
(FDICIA) defined five levels of capital for financial institutions:
Well-capitalized, Adequately capitalized, Undercapitalized, Significantly
undercapitalized and Critically undercapitalized. A bank falls into one of these
levels based on its risk-based ratio and leverage ratio. At March 31, 1997, the
Bank falls in the Well-capitalized category.
PART II - OTHER INFORMATION
Item 6.a. Exhibits
(27) Financial Data Schedule
<PAGE>
SIGNATURES
Pursuant to the requirement of the Securities and Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
AMERICAN BANCORP OF NEVADA
DATED: May 16, 1997 /s/ Bruce E. Hendricks
-------------------------------------
Bruce E. Hendricks
President and Chief Operating Officer
DATED: May 16, 1997 /s/ Patricia L. Kirkwood
-------------------------------------
Patricia L. Kirkwood
Executive Vice President and Cashier
<TABLE> <S> <C>
<ARTICLE> 9
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFROMATION EXTRACTED FROM THE MARCH
31, 1997 FORM 10-Q OF AMERICAN BANCORP OF NEVADA AND IS QUALIFIED IN ITS
ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> MAR-31-1997
<CASH> 24,791
<INT-BEARING-DEPOSITS> 816
<FED-FUNDS-SOLD> 4,500
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 129,310
<INVESTMENTS-CARRYING> 0
<INVESTMENTS-MARKET> 0
<LOANS> 136,601
<ALLOWANCE> 1,038
<TOTAL-ASSETS> 310,283
<DEPOSITS> 236,670
<SHORT-TERM> 39,143
<LIABILITIES-OTHER> 2,562
<LONG-TERM> 0
0
0
<COMMON> 187
<OTHER-SE> 31,721
<TOTAL-LIABILITIES-AND-EQUITY> 310,283
<INTEREST-LOAN> 3,749
<INTEREST-INVEST> 1,870
<INTEREST-OTHER> 142
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</TABLE>
