SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
F O R M 10 - Q
Quarterly Report Under Section 13 or 15 (d)
of the Securities Exchange Act of 1934.
For Quarter Ended MARCH 31, 1996 Commission File Number 0-10929
GUARANTY BANCSHARES HOLDING CORPORATION
(Exact name of registrant as specified in its charter)
LOUISIANA 72-0933277
(State or other jurisdiction of (I.R.S.
incorporation or organization) Employer
Identification
No.)
P. O. BOX 2208, MORGAN CITY, LOUISIANA 70381
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code
504-384-2813
NOT APPLICABLE
(Former name, former address and former fiscal year
if changed since last report.)
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.
Common Stock, $5 par value, 206,124 shares outstanding as of March
31, 1996 Common Stock, no par value, 166,901 shares outstanding as
of March 31, 1996
I N D E X
PART I - Financial Information
Financial Statements
Consolidated Statement of Condition
March 31, 1996, and December 31, 1995 3
Consolidated Statement of Income -
Quarters Ended March 31, 1996,and 1995 4
Consolidated Statement of Cash Flows -
Quarters Ended March 31, 1996 and 1995 5
Consolidated Statement of Changes in
Stockholders' Equity 6
Notes to Consolidated Financial Statements 7
Management's Discussion and Analysis of Financial
Condition and Results of Operations 8
Signature 15
Exhibit Index 17
GUARANTY BANCSHARES HOLDING CORPORATION AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENT OF CONDITION
March 31 December
1996 31, 1995
(in thousands)
(Unaudited)
ASSETS
Cash and due from banks $ 2,292 $ 3,230
Investment securities available for sale 5,183 5,197
Investment securities held to maturity
(Estimated market value $11,010,000 10,998 10,963
Federal funds sold 6,350 3,325
Loans 34,225 34,547
Less: Allowance for loan losses 505 505
Net Loans 33,720 34,042
Premises and equipment 2,013 2,083
Other real estate 64 65
Other assets 1,382 1,340
Total Assets $62,002 $60,245
======= =======
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits $52,432 $50,770
Obligations under capital lease 1,617 1,632
Notes payable 1,632 1,681
Other liabilities 554 500
Total Liabilities 56,235 54,583
======= =======
Commitments and contingent liabilities (Note 2) - -
Stockholders' Equity
$2.70 Cumulative Preferred stock; 145,001
shares authorized, issued and outstanding 3,481 3,481
$.50 Cumulative Preferred stock, 64,999 shares
authorized, 21,900 issued and outstanding 107 107
Class A Common stock; $5 par value; 210,000
shares authorized and outstanding 1,050 1,050
Class B Common stock; no par value; 210,000
shares authorized, 170,877 issued and
outstanding 17 17
Capital surplus 2,039 2,039
Accumulated deficit (918) (1,023)
Treasury Stock (16) (16)
Unrealized gain on securities
available for sale 7 7
Total Stockholders' Equity 5,767 5,662
Total Liabilities and Stockholders' Equity $62,002 $60,245
======= =======
GUARANTY BANCSHARES HOLDING CORPORATION AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENT OF INCOME
THREE MONTHS ENDED
MARCH 31
1996 1995
(IN THOUSANDS, EXCEPT
PER SHARE DATA)
(UNAUDITED)
INTEREST INCOME
Interest and fees on loans $ 816 $ 841
Interest on federal
funds sold 93 35
Interest on investment securities:
Taxable income 207 246
Non-Taxable income 10 5
Total Interest Income 1,126 1,127
INTEREST EXPENSE
Interest on deposits 408 415
Interest on capital lease 41 43
Interest on note payable 28 31
Total Interest Expense 477 489
Net Interest Income 649 638
Provision for loan losses 0 0
Net Interest Income after Provision
for loan losses 649 638
Other operating income 79 106
Operating expenses 565 566
Income before income tax expense 163 178
Income tax expense 58 63
Net income 105 115
Dividends required for preferred stock (101) (101)
Net income available for common
stockholders $ 4 $ 14
===== =====
Earnings per common share $ .01 $ .04
Weighted average common shares
outstanding 373,025 374,275
======= =======
GUARANTY BANCSHARES HOLDING CORPORATION
STATEMENT OF CASH FLOWS
Increase (Decrease) in Cash and Cash Equivalents
QUARTER ENDED
MARCH 31
1996 1995
(IN THOUSANDS)
(UNAUDITED)
Cash flows from operating activities:
Net income $ 105 $ 115
Adjustments to reconcile net income to net cash
provided by operating activities:
Amortization of premium (accretion of discount
on investments),net (52) (70)
(Gain) on sale of other real estate owned 0 (30)
Depreciation and amortization 71 69
(Increase) decrease in accrued interest receivable 27 (30)
Increase in accrued interest payable 42 12
Increase (decrease) in accounts payable
and other liabilities 13 (12)
Net cash provided by operating activities 206 54
Cash flows from investing activities:
Decrease (increase) in federal funds sold (3,025) 1,990
Proceeds from maturities of investment securities 8,589 4,943
Purchase of investment securities (8,536) (4,733)
Net increase (decrease) in loans 322 (671)
Proceeds from sale of other real estate owned 1 110
Purchase of premises and equipment (24) (20)
Increase in other assets (69) (94)
Net cash provided (used) by investing activities (2,742) 1,525
Cash flows from financing activities:
Net increase (decrease) in demand deposits
NOW, savings, and certificates of deposit 1,662 (2,660)
Repayment of notes payable (49) (46)
Repayments of capital lease obligation (15) (20)
Cash dividends 0 (98)
Net cash provided used in financing activities 1,598 (2,824)
Net increase (decrease) in cash and due from banks (938) (1,245)
Cash and due from banks, beginning of year 3,230 3,436
Cash and due from banks, end of quarter $2,292 $2,191
====== ======
Supplemental cash flow information:
Interest paid $ 435 $ 476
====== ======
Income taxes paid $ 91 $ -0-
====== ======
GUARANTY BANCSHARES HOLDING CORPROATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS EQUITY
Unrealized
Gain(Loss)
on Securities
Balance at Available Balance at
Jan.1, 1996 Net Income For Sale Mar.31,1996
$2.70
Preferred
Stock $ 3,481 - - 3,481
$.50
Preferred
Stock $ 107 - - 107
Class A
Common
Stock $ 1,050 - - 1,050
Class B
Common
Stock $ 17 - - 17
Capital
Surplus $ 2,039 - - 2,039
Accumulated
Deficit $ (1,023) 105 - (918)
Treasury
Stock $ (16) - - (16)
Unrealized
loss on
Securities
available
for sale $ 7 - - 7
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
The information furnished reflects all adjustments which are,
in the opinion of management, necessary for a fair statement of
results for the three (3) months ended March 31, 1996 and 1995.
All adjustments are considered to be of a recurring nature.
Results for the interim period may not necessarily be indicative
of results for the entire year.
NOTE 1:
On January 13, 1983, pursuant to a Reorganization and Merger
Agreement, Guaranty Bank & Trust Company of Morgan City (the Bank)
was merged into a subsidiary of Guaranty Bancshares Holding
Corporation (Bancshares) with the effect that the Bank became a
wholly owned subsidiary of Bancshares.
Bancshares has outstanding $2.70 Cumulative Preferred Stock
and Class B, No Par Value Common Stock which were issued in 1988
in exchange for subordinated debentures issued in 1983 when the
company was formed. Bancshares also has outstanding Class A, $5.00
Par Value, Common Stock which were also issued when the company was
formed. The $.50 Cumulative Preferred Stock is subordinate to the
$2.70 Preferred Stock and were issued for cash in 1989 and 1990.
The Class B common stock does not differ from the Class A
common stock except that Class A common stock has a par value of
$5 per share and Class B Common stock has no par value.
The Bank acquired, through foreclosure, 3,976 shares of $2.70
preferred stock, 3,876 shares of Class A, $5.00 par value common
stock and 3,976 shares of Class B, no par value common stock. The
preferred shares were cancelled and reverted to authorized but
unissued $.50 preferred stock. The common shares are held as
treasury stock. (See Capital Resources)
NOTE 2: Contingent Liabilities
As of March 31, 1996, there were $817,833 of letters of credit
outstanding which are not reflected in the consolidated financial
statements. Management does not expect any loss as a result of
these transactions.
GUARANTY BANCSHARES HOLDING CORPORATION AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
Summary
For the three months ended March 31, 1996, Bancshares earned
$105,000, compared with earnings of $115,000 for the comparable
period in 1995. The primary reason for the decrease in earnings
was a decrease in other operating income. The subsidiary bank did
not make a provision for loan losses in either period.
Changes in financial position at March 31, 1996, from December
31, 1995 were increases in federal funds sold and deposits, and
decreases in loans. Proceeds from deposits were primarily con-
verted to federal funds sold. Federal funds sold increased
$3,025,000, while loans decreased $322,000.
Net credit income is the most significant component of
financial operations and is affected by interacting forces,
including changes in investment market interest rates and changes
in volume and mix of interest earning assets and interest bearing
deposits. For the first three months of 1996, net interest income
as a percent of net average earning assets of $55,694,000 was 4.7
percent, the same as the first quarter of 1995.
Net Operating Results
The following analysis should be read in conjunction with the
accompanying financial statements.
Interest income decreased a net of $1,000. Of this amount,
federal funds sold increased $58,000. Interest on loans decreased
$25,000, while investment income decreased $34,000.
The decrease in loan income is attributable to a $381,000
decrease in average loans outstanding, and 0.3 percent decrease in
average yields to 9.5 percent. The decrease in investment income
was the result of a $3,040,000 decrease in average securities
investments and offset by a 0.3 percent increase in average yields,
mirroring the overall change in interest rates.
Interest expense decreased $12,000 from 1995 levels. Average
interest bearing deposits decreased $1,025,000, while average rates
paid did not change from the 3.8 percent of 1995. Funds borrowed
are from the Federal Home Loan Bank of Dallas and were used to fund
commercial real estate loans which have a comparable scheduled
amortization and maturity.
Investment Securities
Investment securities decreased from $16,609,000 as of March
31, 1995 to $16,181,000 at March 31, 1996. This is primarily
attributable to maturities of U.S. Treasury securities and
amortization on mortgage backed securities and purchases of U.S.
Agency securities. There were no securities sales during the first
quarter of 1996 or 1995.
An analysis of investment securities follows (in thousands).
Amortized Unrealized Market
Cost Gain Loss Value
March 31, 1996
Held to Maturity
U. S. Treasury Securities $ 1,000 $ - $ - $ 1,000
Obligations of U.S.
Agencies and Corporations 9,315 1 1 9,315
Obligations of states and
political subdivisions 666 13 1 678
Other Investments 17 - - 17
Total $10,998 $ 14 $ 2 $11,010
======= ==== ===== =======
Available for Sale
Obligations of U.S.
Agencies and Corporations $ 4,674 $ 17 $ 6 $ 4,685
Other investments 498 - - 498
Total $ 5,172 $ 17 $ 6 $ 5,183
======= ==== ==== =======
December 31, 1995
Held to Maturity
U. S. Treasury Securities $ 1,997 $ 2 $ - $ 1,999
Obligations of U.S.
Agencies and Corporations 8,255 8 11 8,252
Obligations of states and
political subdivisions 692 17 - 709
Other Investments 20 - - 20
Total $10,964 $ 27 $ 11 $10,980
======= ===== ==== =======
Available for Sale
Obligations of U.S.
Agencies and Corporations $ 4,693 $ 14 $ $ 4,704
Other investments 493 - - 493
Total $ 5,186 $ 14 $ 3 $ 5,197
======= ====== ==== =======
March 31, 1995
Held to Maturity
U. S. Treasury Securities $ 5,923 $ - $ 29 $ 5,894
Obligations of U.S.
Agencies and Corporations 4,620 1 51 4,570
Obligations of states and
political subdivisions 362 - 5 357
Other Investments 27 - - 27
Total $10,932 $ 1 $ 85 $10,848
======= ====== ==== =======
Available for Sale
Obligations of U.S.
Agencies and Corporations 5,215 10 25 5,200
Other investments 477 - - 477
Total $ 5,692 $ 10 $ 25 $ 5,677
======= ====== ==== =======
An analysis of the market value of the investment portfolio by
maturity periods or repricing frequency at March 31, 19965 follows
(in thousands):
Amortized Market
Cost Value
Within one year $ 7,583 $ 7,583
One to five years 6,843 6,859
Five to ten years 464 473
After ten years 1,280 1,278
Total $ 16,170 $16,193
========= =======
Maturities of mortgage backed securities are classified by
contractual (stated) maturity dates. Expected maturities will
differ from contractual maturities because borrowers have the right
to call or prepay obligations.
Investment securities with a carrying value of approximately
$8,128,000, $6,882,000, and $6,986,000 at March 31, 1996, December
31, 1995 and March 31, 1995, respectively, were pledged to secure
public deposits as required by law.
Deposits
A summary of the deposits as of March 31, 1996, December 31,
and March 31, 1995 is as follows:
March 31 December 31 March 31
1996 1995 1995
(in thousands)
Demand Deposits $ 9,783 $ 8,419 $ 6,756
NOW Accounts 5,764 5,405 4,998
Money Market
Investment Accts. 7,367 6,842 5,023
Savings Deposits 6,945 7,148 7,267
Other Time Deposits 16,820 17,330 17,951
Certificates of Dep.
of $100,000 or
more 5,753 5,626 6,843
$52,432 $50,770 $48,838
======= ======= =======
Non-interest bearing demand deposits at March 31, 1996
increased $3,027,000 from March 31, 1995. As interest rates paid
on money market investment accounts and certificates of deposits
trended downward, depositors transferred funds to non-bank related
institutions. Certificates of deposits of $100,000 or more to
commercial entities decreased $1,162,000. During this period,
public fund deposits in certificates of deposit of $100,000 or more
increased $72,000.
The Bank has insignificant foreign and no brokered deposits.
Short Term Borrowings
The Bank had no short term borrowings in 1996 or 1995.
Allowance for Loan Losses and Non-Performing Loans and Other Real
Estate
The allowance for loan losses was 1.48 percent of loans
outstanding at March 31, 1996, compared with 1.46 percent at
December 31, 1995 and 1.42 percent at March 31, 1995. The Bank did
not make a provision to the reserve for loan losses during the
first quarters of 1996 or 1995.
1996 1995
Balance at January 1, $504,000 $502,000
Recoveries credited to the allowance 3,000 4,000
507,000 506,000
Losses charged to the allowance 2,000 1,000
Balance at March 31 $505,000 $505,000
======== ========
Indicative of conditions in the local economy, the following
schedule shows non-performing loans on non-accrual status and
repossessed and foreclosed real estate. The loans on non-accrual
status at March 31, 1996 and December 31, 1995 are to the same
borrower.
March 31 December 31 March 31
1996 1995 1995
Non-accrual loans $72,000 $ 84,000 $ -
Foreclosed real estate 64,000 65,000 30,000
Management believes the Bank has adequate reserves to provide
for possible future loan losses.
Other Income
Other operating income aggregated to $79,000 for the first
three months of 1996 compared with $106,000 in 1995. There was no
trading account activity in 1996 or 1995.
Quarter Ending
March 31
1996 1995
Service charges on deposit accounts $ 49,000 $ 50,000
Other service charges and fees 20,000 17,000
Other operating income 10,000 39,000
Net securities and gains - -
Total $ 79,000 $106,000
======== ========
Operating Expenses
Other operating expenses totaled $565,000 for the first three
months of 1996, compared with $566,000 for 1995, a $1,000 decrease.
Personnel expenses totaled $265,000 for the period, compared
with $247,000 in 1995. In 1996, expenses related to other real
estate and repossessed property, net of rental income on these
properties, totaled $1,000. Expenses represent taxes and main-
tenance on these properties.
A summary of other operating expenses is as follows:
Three Months 1996
Ending Over
March 31, (Under)
1996 1995 1995
(In Thousands)
Salaries and benefits $ 265 $ 247 $ 18
Expenses related to other real
estate and repossessed
properties, net of rental
income on these properties 1 6 (5)
Net occupancy expenses 108 104 4
Equipment and computer expenses 49 50 (1)
Professional fees and services 38 35 3
FDIC and other insurance 10 37 (27)
Other 94 87 7
$ 565 $ 566 $ (1)
====== ===== =====
Income Taxes
Income taxes were accrued at the U. S. federal tax rate. At
March 31, 1996, Bancshares has no net operating loss carryforwards
available.
Liquidity
The term "liquidity" generally refers to the ability of a
company to generate adequate amount of cash to meet its needs. For
a bank, "liquidity" represents its ability to meet timely the
demand for funds used to honor checks, to pay maturing time
deposits, to fund increases in loan demand and to satisfy other
commitments. Unless it borrows funds, a bank's source of funds are
generally its core deposits and its retained earnings.
At March 31, 1996 and 1995, the Bank's gross loans-to-deposits
ratios were 65.3 percent and 72.6 percent, respectively. Loans
decreased $1,224,000 from 1995 levels. Significant to the loan-
to-deposit ratio computation, deposits increased $3,594,000 as of
March 31, 1996 from 1995. The Bank has no brokered deposits.
As a bank holding company, the ability of Bancshares to pay
its obligations is wholly dependent upon the receipt of dividends
and tax benefits from the Bank.
Capital Resources
At March 31, 1996, stockholders' equity amounted to $5,767,000
compared with $5,295,000 at March 31, 1995 and $5,662,000 at
December 31, 1995.
Bancshares has paid only one $2.70 and one 67.5 cents dividend
on its $2.70 preferred stock and has not declared or paid dividends
on its $.50 preferred stock since their issuance. As a result
accumulated and unpaid dividends are as follows:
$2.70 Preferred Stock, Dividends accumulated
from January 13, 1990 through April 13, 1996 $2,545,000
$.50 Preferred Stock, dividends accumulated
from January 13, 1990 through April 13, 1996 72,000
$2,617,000
==========
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.
/s/Lee A. Ringeman
Lee A. Ringeman
Executive Vice President
Chief Financial Officer
DATE: May 14, 1996
PART II
Item 6: Exhibits and Reports on Form 8-K
a. Exhibit No. 11. Computation of Earnings Per Common
Share
b. Exhibit No. 27. Financial Data Schedule
c. The Registrant has not filed any Reports on Form
8-K during the first quarter of 1996.
Exhibit No. 11 Computation of Earnings Per Common Share
THREE MONTHS ENDED
MARCH 31, 1996
Net income available
for common shareholders $ 4,000
Average common shares outstanding 373,025
Income per common share $ 0.01
<TABLE> <S> <C>
<ARTICLE> 9
<CIK> 0000706731
<NAME> GUARANTY BANCSHARES HOLDING CORPORATION
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> MAR-31-1996
<CASH> 2292
<INT-BEARING-DEPOSITS> 0
<FED-FUNDS-SOLD> 6350
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 5183
<INVESTMENTS-CARRYING> 10998
<INVESTMENTS-MARKET> 11010
<LOANS> 34225
<ALLOWANCE> 505
<TOTAL-ASSETS> 62002
<DEPOSITS> 52432
<SHORT-TERM> 0
<LIABILITIES-OTHER> 554
<LONG-TERM> 3249
3588
0
<COMMON> 1067
<OTHER-SE> 1112
<TOTAL-LIABILITIES-AND-EQUITY> 62002
<INTEREST-LOAN> 816
<INTEREST-INVEST> 217
<INTEREST-OTHER> 93
<INTEREST-TOTAL> 1126
<INTEREST-DEPOSIT> 408
<INTEREST-EXPENSE> 477
<INTEREST-INCOME-NET> 649
<LOAN-LOSSES> 0
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 565
<INCOME-PRETAX> 163
<INCOME-PRE-EXTRAORDINARY> 105
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 105
<EPS-PRIMARY> .01
<EPS-DILUTED> .01
<YIELD-ACTUAL> 4.7
<LOANS-NON> 72
<LOANS-PAST> 0
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 82
<ALLOWANCE-OPEN> 504
<CHARGE-OFFS> 2
<RECOVERIES> 3
<ALLOWANCE-CLOSE> 505
<ALLOWANCE-DOMESTIC> 505
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
