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, 1997
[ ] Transition Report Pursuant To Section 13 Or 15(d) Of The Securities
Exchange Act Of 1934
Commission File Number 0-22606
BRITTON & KOONTZ CAPITAL CORPORATION
Mississippi 64-0665423
(State of Incorporation) (IRS Employer
Identification No.)
500 Main Street, Natchez, Mississippi 39120
Telephone: 601-445-5576
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
1,767,064 Shares of Common Stock, Par Value $2.50, were issued and outstanding
as of July 1, 1997.
Transitional Small Business Disclosure Format: Yes , No X
<PAGE>
BRITTON & KOONTZ CAPITAL CORPORATION
AND SUBSIDIARY
INDEX
PART I FINANCIAL INFORMATION
Item 1. Financial Statements (unaudited).
Consolidated Balance Sheets for June 30, 1997
and December 31, 1996
Consolidated Statements of Income for the Three Months
and the Six Months Ended June 30, 1997 and June 30, 1996
Consolidated Statements of Stockholders' Equity
for the Six Months Ended June 30, 1997 and
June 30, 1996
Consolidated Statements of Cash Flows for the
Six Months Ended June 30, 1997 and June 30, 1996
Notes to the Consolidated Financial Statements
Item 2. Management's Discussion and Analysis or
Plan of Operation.
PART II. OTHER INFORMATION.
Item 1. Legal Proceedings.
Item 2. Changes in Securities.
Item 3. Defaults Upon Senior Securities.
Item 4. Submission of Matters to a Vote of Security Holders.
Item 5. Other Information.
Item 6. Exhibits and Reports on Form 8-K.
SIGNATURES
<PAGE>
BRITTON & KOONTZ CAPITAL CORPORATION
AND SUBSIDIARIES
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements (Unaudited).
Consolidated Balance Sheets for June 30, 1997 and December 31, 1996
Consolidated Statements of Income for the Three Months and the Six
Months Ended June 30, 1997 and June 30, 1996
Consolidated Statements of Stockholders' Equity for the Six Months Ended
June 30, 1997 and June 30, 1996
Consolidated Statements of Cash Flows for the Six Months Ended June 30,
1997 and June 30, 1996
Notes to the Consolidated Financial Statements. These Notes constitute
an integral part of the Consolidated Financial Statements.
<PAGE>
BRITTON & KOONTZ CAPITAL CORPORATION AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
JUNE 30, 1997 AND DECEMBER 31, 1996
<TABLE>
<CAPTION>
June 30, December 31,
1997 1996
ASSETS: ------------ ------------
<S> <C> <C>
Cash and due from banks:
Non-interest bearing $ 3,393,583 $ 4,656,684
Interest bearing 209,642 449,801
------------ ------------
Total cash and due from banks 3,603,225 5,106,485
Federal funds sold 600,000 700,000
Investment securities:
Held-to-maturity(estimated market value of
$40,236,629 in 1997 and $43,595,368 in 1996) 40,036,697 43,412,008
Available-for-sale, at fair value 3,989,647 0
Equity securities 1,197,750 1,197,650
Loans, less unearned income of $274,950 in 1997 and
$252,625 in 1996; and allowance for loan losses of
$686,736 in 1997 and $622,975 in 1996 99,565,453 95,322,179
Bank premises and equipment, net of accumulated
depreciation 3,737,678 3,674,397
Other real estate owned,less allowance for losses
of $0 in 1997 and 1996 78,282 78,928
Accrued interest receivable 1,258,957 1,058,111
Cash surrender value life insurance 663,921 634,930
Other assets 108,188 117,974
------------ ------------
Total Assets $154,839,798 $151,302,662
============ ============
LIABILITIES:
Deposits:
Non-interest bearing 16,293,451 16,065,133
Interest bearing 112,776,691 110,375,292
------------ ------------
Total Deposits $129,070,142 $126,440,425
Securities sold under repurchase agreements 2,481,119 1,664,139
Federal funds purchased 0 2,000,000
Accrued Interest Payable 746,071 839,461
Negative Goodwill, net of accumulated amortization
of $1,695,340 in 1997 and $1,543,680 in 1996 1,365,082 1,516,742
Advances from borrowers for taxes & insurance 243,800 367,734
Accrued taxes and other liabilities 3,593,777 1,952,779
------------ ------------
Total Liabilities $137,499,991 $134,781,280
------------ ------------
STOCKHOLDERS' EQUITY:
Common stock, $2.50 par value per share; 12,000,000
shares authorized; 1,767,064 and 1,764,288 shares
issued and outstanding in 1997 and 1996 respectively 4,417,660 4,410,720
Additional paid-in-capital 3,414,927 3,395,617
Retained earnings 9,475,386 8,715,045
Net unrealized gain on securities available for sale 31,834 0
------------ ------------
Total Stockholders' Equity $ 17,339,807 $ 16,521,382
------------ ------------
Total Liabilities and Stockholders' Equity $154,839,798 $151,302,662
============ ============
The accompanying notes are an integral part of these financial statements.
</TABLE>
<PAGE>
BRITTON & KOONTZ CAPITAL CORPORATION AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
June 30, June 30,
1997 1996 1997 1996
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Interest Income:
Interest and fees on loans $2,200,572 $2,017,276 $4,303,132 $4,020,307
Interest on investment securities:
Taxable interest income 787,102 830,833 1,517,905 1,633,720
Exempt from federal taxes 19,567 19,497 39,209 38,128
Interest on federal funds sold 24,023 30,101 46,186 57,009
---------- ---------- ---------- ----------
Total Interest Income $3,031,264 $2,897,707 $5,906,432 $5,749,164
---------- ---------- ---------- ----------
Interest Expense:
Interest on deposits $1,240,604 $1,240,463 $2,463,729 $2,528,118
Interest on federal funds purchased 3,381 234 5,919 234
Interest on securities sold under
repurchase agreements 53,504 40,984 79,968 76,025
---------- ---------- ---------- ----------
Total Interest expense $1,297,489 $1,281,681 $2,549,616 $2,604,377
---------- ---------- ---------- ----------
Net Interest Income $1,733,775 $1,616,026 $3,356,816 $3,144,787
Provision for loan losses 40,000 0 80,000 $50,000
---------- ---------- ---------- ----------
Net interest income after
Provision for loan Losses $1,693,775 $1,616,026 $3,276,816 $3,094,787
---------- ---------- ---------- ----------
Other Income:
Service charge on deposit accounts 160,831 155,839 332,356 312,705
Income from fiduciary activities 14,045 14,674 28,457 27,938
Insurance premiums and commissions 10,578 12,708 20,138 23,849
Gain/(loss) on sale of ORE 0 1,975 0 (7,086)
Gain/(loss) on sale of mortgage loans (2,212) (36) (6,373) (1,014)
Gain/(loss) on sale of securities (108) 0 (108) 0
Gain on sale of premises & equipment 0 0 0 100
Amortization of negative goodwill 74,110 88,780 151,660 181,640
Other 172,007 59,937 260,440 136,573
---------- ---------- ---------- ----------
Total other income $ 429,251 $ 333,877 $786,570 $ 674,705
---------- ---------- ---------- ----------
Other Expense:
Salaries 580,653 514,259 1,131,100 1,027,350
Employee benefits 81,107 62,708 160,276 139,190
Net occupancy expense 90,554 91,068 174,141 171,181
Equipment expense 112,473 118,016 209,617 251,553
FDIC assessment 9,357 30,947 18,737 59,066
Stationery & supplies 33,622 30,571 56,038 63,558
Other real estate expense (7,407) 2,458 (7,277) (4,611)
Other 217,877 308,536 445,228 517,139
---------- ---------- ---------- ----------
Total other expenses $1,118,236 $1,158,563 $2,187,860 $2,224,426
---------- ---------- ---------- ----------
Income Before Income Taxes 1,004,790 791,340 1,875,526 1,545,066
Income tax expense 337,745 244,083 626,091 492,556
---------- ---------- ---------- ----------
Net Income $ 667,045 $ 547,257 $1,249,435 $1,052,510
========== ========== ========== ==========
Net Income Per Share $.38 $.31 $.71 $.59
Weighted Average Shares Outstanding 1,767,185 1,772,656 1,767,087 1,772,476
The accompanying notes are an integral part of these financial statements
</TABLE>
<PAGE>
BRITTON & KOONTZ CAPITAL CORPORATION AND SUBSIDIARY
STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
FOR THE SIX MONTHS ENDED JUNE 30, 1997 AND 1996
<TABLE>
<CAPTION>
PAR RETAINED
# SHARES VALUE SURPLUS EARNINGS OTHER TOTAL
--------- ---------- ---------- ---------- ------- -----------
<S> <C> <C> <C> <C> <C> <C>
Balance December 31, 1995 1,764,288 $4,410,720 $3,395,617 $7,564,900 $ 0 $15,371,237
Net income for six months
ended June 30, 1996 1,052,510 1,052,510
Cash dividend declared
$.20 per share (352,858) (352,858)
--------- ---------- ---------- ---------- ------- -----------
Balance June 30, 1996 1,764,288 $4,410,720 $3,395,617 $8,264,552 $ 0 $16,070,889
========= ========== ========== ========== ======= ===========
Balance December 31, 1996 1,764,288 $4,410,720 $3,395,617 $8,715,045 $ 0 $16,521,382
Net income for six months
ended June 30, 1997 1,249,435 1,249,435
Cash dividend declared
$.27 per share (476,358) (476,358)
Capital stock issued 2,776 6,940 19,310 (12,736) 13,514
Change in unrealized gains
(losses) on securities
available for sale 31,834 31,834
--------- ---------- ---------- ---------- ------- -----------
Balance June 30, 1997 1,767,064 $4,417,660 $3,414,927 $9,475,386 $31,834 $17,339,807
========= ========== ========== ========== ======= ===========
The accompanying notes are an integral part of these financial statements
</TABLE>
<PAGE>
BRITTON & KOONTZ CAPITAL CORPORATION AND SUBSIDIARY
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 1997 AND 1996
<TABLE>
<CAPTION>
1997 1996
----------- -----------
<S> <C> <C>
Operating activities
Net Income $ 1,249,435 $ 1,052,510
Adjustments to reconcile net income to net cash
provided by (used in) operating activities:
Deferred taxes (25,083) (28,899)
Provision for loan losses 80,000 50,000
Provision for depreciation 163,857 150,711
FHLB stock dividends received (27,500) (27,900)
(Gain) loss on sale of other real estate 0 7,086
(Gain) loss on sale of loans 6,374 1,014
(Gain) loss on sale of securities 108 0
Amortization of investment security premiums, net (11,779) 44,073
Amortization of valuation adjustment on acquired loans 38,890 62,330
Amortization of valuation adjustment on acquired deposits (7,170) (44,209)
Amortization of negative goodwill (151,660) (181,640)
(Increase) decrease in accrued interest receivable (200,846) (74,543)
(Increase) decrease in cash surrender value (28,991) (20,527)
(Increase) decrease in other assets 9,785 (41,822)
Increase (decrease) in interest payable (93,390) (46,513)
Increase (decrease) in advances from borrowers for
taxes and insurance (123,934) (163,292)
Increase (decrease) in other liabilities 1,666,081 853,468
------------ ------------
Net cash provided (used) by operating activities $ 2,544,177 $ 1,591,847
------------ ------------
Investing activities
Proceeds from sale of Federal Home Loan Bank stock 27,400 15,300
Purchases of investment securities (6,027,467) (6,183,596)
Proceeds from maturities and paydowns
of investment securities 5,456,637 4,570,600
(Increase) decrease in federal funds sold 100,000 1,450,000
Net increase in loans (4,367,892) (2,130,325)
Purchases of premises and equipment (227,138) (213,291)
Proceeds from sales of other real estate, net 0 223,256
------------ ------------
Net cash provided (used) by investing activities $(5,038,460) $(2,268,056)
------------ ------------
Financing activities
Net increase (decrease) in customer deposits 2,636,887 (216,239)
Net increase (decrease) in short term borrowings (1,183,020) 764,774
Common stock issued 13,514 0
Cash dividends paid (476,358) (352,858)
------------ ------------
Net cash provided (used) by financing activities $ 991,023 $ 195,677
------------ ------------
Increase (decrease) in cash and cash equivalents (1,503,260) (480,532)
Cash and cash equivalents at beginning of period 5,106,485 4,702,493
Cash and cash equivalents at end of period $ 3,603,225 $ 4,221,961
============ ============
(Continued)
The accompanying notes are an integral part of these financial statements
<PAGE>
BRITTON & KOONTZ CAPITAL CORPORATION AND SUBSIDIARY
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 1997 AND 1996
(Continued)
1997 1996
---------- ----------
<S> <C> <C>
Supplemental disclosures:
Cash paid for:
Interest on deposits and other borrowing $2,697,767 $2,650,890
Income taxes 534,357 525,884
The accompanying notes are an integral part of these financial statements
</TABLE>
<PAGE>
BRITTON & KOONTZ CAPITAL CORPORATION AND SUBSIDIARY
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
JUNE 30, 1997 AND DECEMBER 31, 1996
Presentation. The accompanying consolidated balance sheet for Britton &
Koontz Capital Corporation (the "Company") as of December 31, 1996, has been
derived from the audited financial statements of the Company for the year then
ended.
The accompanying consolidated financial statements as of June 30, 1997, and
June 30, 1996, are unaudited and reflect all normal recurring adjustments
which, in the opinion of management, are necessary for the fair presentation
of financial position and operating results of the periods presented.
The Company approved the increase in authorized capital stock from 3,000,000
to 12,000,000 shares along with a 4:1 stock split that was effective for
shareholders of record as of the close of business on April 12, 1997.
Earnings per share and outstanding shares have been restated for all prior
periods.
Nonperforming Assets. Nonperforming assets at June 30, 1997 and December 31,
1996, were as follows:
06/30/97 12/31/96
(dollars in thousands)
Nonaccrual loans by type
Real estate $ 1 $ 157
Installment 2 2
Commercial and all other loans 25 75
-------- --------
Total nonaccrual loans 28 234
Loans past due 90 days or more 392 383
-------- --------
Total nonperforming loans 420 617
Other real estate owned (net) 78 79
-------- --------
Total nonperforming assets $ 498 $ 696
======== ========
Nonperforming loans as a percent
of loans, net of unearned interest
and loans held for sale .42% .64%
Allowance for Loan Losses. The following table reflects the transactions in
the allowance for loan losses for the six month periods ended June 30, 1997
and 1996:
06/30/97 06/30/96
(dollars in thousands)
Balance at beginning of year $ 623 $ 724
Provision charged to operations 80 50
Charge-offs (32) (91)
Recoveries 16 3
-------- --------
Net recoveries (charge-offs) (16) (83)
-------- --------
Balance at end of period $ 687 $ 691
======== ========
Allowance for loan losses as a
percent of loans, net of unearned
interest and loans held for sale .69% .73%
<PAGE>
Item 2: Management's Discussion and Analysis or Plan of Operations.
This discussion is intended to supplement the consolidated financial
statements, expand on material changes in financial condition since year end
and to compare the operating results for the six months ended June 30, 1997,
to the same period in 1996.
Financial Condition
Total assets increased to $154.8 million at June 30, 1997, from $151.3
million at year end 1996 due primarily to an increase in loans. Loans, net of
unearned interest and allowance for losses, increased 4.5% to $99.6 million at
June 30, 1997, as compared to $95.3 million at December 31, 1996.
Asset Quality. Nonperforming loans at June 30, 1997, decreased to $420
thousand from $617 thousand at December 31, 1996. This decrease is shown in
the breakdown of nonperforming loans which includes a decrease in nonaccrual
loans to $28 thousand at June 30, 1997, from $234 thousand at December 31,
1996, while loans past due ninety days or more remained stable, ending June
30, 1997, at $392 thousand compared to $383 thousand at June 30, 1996.
Nonperforming loans as a percent of loans, net of unearned income, ended June
30, 1997 at .42%, as compared to .64% at December 31, 1996. Other real estate
owned remained stable at $78 thousand.
Allowance for Possible Loan Losses. The allowance for possible loan
losses was $687 thousand at June 30, 1997, compared to $691 thousand at June
30, 1996. The ratio of the allowance for possible loan losses to loans, net
of unearned income and loans held for sale, decreased to .69% at June 30,
1997, from .73% at June 30, 1996, due to continued loan growth. Management
regularly reviews the level of the allowance for possible loan losses and is
of the opinion that it is adequate at June 30, 1997. The Company's net
charge-offs for the first six months of 1997 compared to the same period in
1996 decreased 81% to $16 thousand, down from $83 thousand.
Securities. Management determines the classification of its securities
at acquisition. Securities that are deemed to be held to maturity are
accounted for by the amortized cost method. These securities decreased $3.4
million to $40.0 million at June 30, 1997, compared to $43.4 million at
December 31, 1996. Available-for-sale securities reported at fair market
value increased to $4.0 million at June 30, 1997. Equity securities, comprised
of Federal Reserve Bank stock of $239 thousand and Federal Home Loan Bank
stock of $958 thousand, remained stable.
Liquidity. The Company's cash and cash equivalents decreased to $3.6
million at June 30, 1997, compared to $5.1 million at December 31, 1996. Cash
provided by operating and financing activities increased by $2.5 million and
$1.0 million, respectively, while investing activities used $5.0 million.
Deposits. Deposits increased to $129.0 million at June 30, 1997, from
$126.4 million at December 31, 1996, primarily due to an increase in interest-
bearing demand deposits.
Capital. Stockholders' equity increased to $17.3 million at June 30,
1997, from $16.5 million at the end of 1996. The ratio of Stockholders'
equity to assets increased to 11.20% at June 30, 1997, compared to 10.92% at
the end of 1996, due to growth in retained earnings.
The Company maintained a Tier 1 capital to risk weighted assets ratio at
June 30, 1997, of 18.98%, a total capital to risk weighted assets ratio of
19.73% and a leverage ratio of 11.18%. These levels exceed the minimum
requirements of the regulatory agencies of 4.00%, 8.00% and 3.00%
respectively.
<PAGE>
Results of Operations
First Six Months of 1997 Compared to the First Six Months of 1996
Net income increased 19% to $1.249 million or $.71 per share from $1.053
million or $.59 per share. This increase is primarily attributable to a $212
thousand increase in net interest income resulting from strong loan demand and
a $107 thousand recovery of prior-period interest on non-accrual loans.
The returns on average assets and average equity for the first half of
1997 were 1.62% and 14.58%, respectively, compared to 1.37% and 13.21%,
respectively, for the comparable period in 1996.
Analysis of Net-Interest Income. Net interest income for the period
ended June 30, 1997, was $3.4 million, an increase of 7% over the same period
in 1996. Factors contributing to this increase include: the positive effect
of the change in the mix of earning assets from lower-yielding securities to
higher-yielding loans; growth in average earning assets; and a lower cost of
funds. The above factors produced an increase in net interest margin from
4.33% to 4.59%.
Provision for Loan Losses. The provision for loan losses increased to
$80 thousand in the first half of 1997, from $50 thousand during the same
period in 1996 due to management expectations of continued loan growth.
Non-Interest Income. Non-interest income increased to $787 thousand for
the six month period ended June 30, 1997, from $675 thousand for the same
period in 1996. This increase is primarily attributable to the recovery of
prior-period interest income of $107 thousand on nonaccrual loans. Fees from
core business lines, primarily service charges on deposit accounts, internet
fees and other retail service fees, grew modestly but were offset by a
reduction in the amortization of negative goodwill from $182 thousand to $152
thousand.
Non-Interest Expense. Non-interest expense decreased to $2.19 million
through June 30, 1997, from $2.22 million during the same period of 1996.
The first half of 1996 included $61 thousand in expense for the development of
electronic banking capabilities.
Pretax Income. The combination of all the above factors produced a
pretax income of $1.876 million for the six months ended June 30, 1997,
compared to $1.545 million for the same period in 1996. Income taxes for the
six months ended June 30, 1997, were $626 thousand compared to $493 thousand
for the same period in 1996.
<PAGE>
PART II. OTHER INFORMATION
Item 1. Legal Proceedings
None
Item 2. Changes in Securities
None
Item 3. Defaults Upon Senior Securities
None
Item 4. Submission of Matters to a Vote of Security Holders
None.
Item 5. Other Information
None.
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
3.1 Restated Articles of Incorporation of Britton & Koontz
Capital Corporation, incorporated by reference to Exhibit
4.1 to Registrants Registration Statement on Form S-8,
Registration No. 333-20631, filed with the Commission on
January 29, 1997.
3.2 By-Laws of Britton & Koontz Capital Corporation, as amended,
incorporated by reference to Exhibit 3.2 to Registrant's
Current Report on Form 8-A filed with the Commission on
October 13, 1993.
4.1 Certain provisions defining the rights of Shareholders are
found in the Articles of Incorporation and By-Laws of
Britton & Koontz Capital Corporation. See Exhibits 3.1 and
3.2, above.
4.2 Shareholder Rights Agreement dated June 1, 1996, between
Britton & Koontz Capital Corporation and Britton & Koontz
First National Bank, as Rights Agent, incorporated by
reference to Exhibit 4.3 to Registrant's Registration
Statement on Form S-8, Registration No. 333-20631, filed
with the Commission on January 29, 1997.
10.1 Employment Agreement dated December 31, 1996, between
Britton & Koontz First National Bank and W. Page Ogden,
incorporated by reference to Exhibit 10.1 to Registrant's
Annual Report on Form 10-KSB filed with the Commission on
March 28, 1997.
10.2 Employment Agreement dated December 31, 1996, between
Britton & Koontz First National Bank and Bazile R. Lanneau,
Jr., incorporated by reference to Exhibit 10.2 to
Registrant's Annual Report on Form 10-KSB filed with the
Commission on March 28, 1997.
10.3 Employment Agreement dated January 1, 1996, between Britton
& Koontz First National Bank and James J. Cole, incorporated
by reference to Exhibit 10.3 to Registrant's Annual Report
on Form 10-KSB filed with the Commission on March 29, 1996.
<PAGE>
10.4 Salary Continuation Agreements dated September 26, 1994,
between Britton & Koontz First National Bank and W. Page
Ogden, Bazile R. Lanneau, Jr. and James J. Cole,
incorporated by reference to Exhibit 10 to Registrant's
Current Report on Form 10-QSB filed with the Commission on
November 14, 1994.
10.7 Britton & Koontz Capital Corporation Long-Term Incentive
Plan and Amendment, incorporated by reference to Exhibit 4.4
to Registrant's Registration Statement on Form S-8,
Registration No. 333-20631, filed with the Commission on
January 29, 1997.
11 Statement re: computation of per share earnings
27 Financial Data Schedule
(b) Reports on Form 8-K
A report on Form 8-K, dated April 11, 1997, was filed by the
Registrant with the Commission under Item 5, Other Events. The
document was filed to report an increase in the Company's
authorized capital stock and a 4:1 stock split.
A report on Form 8-K, dated April 29, 1997, was filed by the
Registrant with the Commission under Item 5, Other Events. The
document was filed to report first quarter 1997 earnings.
A report on Form 8-K, dated April 29, 1997, was filed by the
Registrant with the Commission under Item 5, Other Events. The
document was filed to report the declaration of a semi-annual
dividend.
<PAGE>
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 thereto duly authorized.
BRITTON & KOONTZ CAPITAL CORPORATION
August 14, 1997 /s/ W. Page Ogden
-----------------------------
W. Page Ogden
President and Chief Executive
Officer
August 14, 1997 /s/ Bazile R. Lanneau, Jr.
--------------------------
Bazile R. Lanneau, Jr.
Vice President and
Chief Financial Officer
<PAGE>
EXHIBIT INDEX
Exhibit
Number Item
- ------- ----
11 Statement Regarding Computation of Per Share Earnings
27 Financial Data Schedule
EXHIBIT 11
Statement Re: Computation of Per Share Earnings
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
June June
_____________________ ______________________
1997 1996 1997 1996
_________ _________ _________ __________
<S> <C> <C> <C> <C>
Primary:
Average shares outstanding: 1,765,569 1,764,288 1,764,932 1,764,288
Net effect of the assumed exercise
of stock options-based on the
treasury stock method using
average stock prices 1,616 8,368 2,155 8,188
_________ _________ __________ __________
Total 1,767,185 1,772,656 1,767,087 1,772,476
========= ========= ========== ==========
Net income $667,045 $547,257 $1,249,435 $1,052,510
========= ========= ========== ==========
Net income per share $0.38 $0.31 $0.71 $0.59
========= ========= ========== ==========
Fully Diluted:
Average shares outstanding: 1,765,569 1,764,288 1,764,932 1,764,288
Net effect of the assumed exercise
of stock options based on the
treasury stock method using
average market price or period
end market price, whichever is higher 1,616 8,780 2,176 8,400
--------- --------- ---------- ----------
Total 1,767,185 1,773,068 1,767,108 1,772,688
========= ========= ========== ==========
Net income $667,045 $547,257 $1,249,435 $1,052,510
========= ========= ========== ==========
Net income per share $0.38 $0.31 $0.71 $0.59
========= ========= ========== ==========
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 9
<CIK> 0000707604
<NAME> BRITTON AND KOONTZ FIRST NATIONAL BANK
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-31-1997
<PERIOD-END> JUN-30-1997
<CASH> 3603225
<INT-BEARING-DEPOSITS> 112776691
<FED-FUNDS-SOLD> 600000
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 3989647
<INVESTMENTS-CARRYING> 40036697
<INVESTMENTS-MARKET> 40236629
<LOANS> 99565453
<ALLOWANCE> 686736
<TOTAL-ASSETS> 154839798
<DEPOSITS> 129070142
<SHORT-TERM> 2481119
<LIABILITIES-OTHER> 5948730
<LONG-TERM> 0
0
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