UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
Form 10-Q
Quarterly Report Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934 for the
Quarter Ended June 30, 1995 Commission File
Number: 0-12437
One American Corp.
(Exact name of registrant as specified in its charter)
Louisiana 72-0948181
(State or other jurisdiction of (IRS Employer Identification No.)
Incorporation of Organization)
2785 LA Hwy. 20 West
P. O. Box 550
Vacherie, Louisiana 70090-0550
(Address of principal executive offices) (Zip Code)
Registrant's Telephone Number, including area code: (504) 265-2265
Securities registered pursuant to Section 12(b) of the Act: None
Securities registered pursuant to Section 12(g) of the Act:
Common Stock, $5.00 Par Value
(Title of Class)
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, 1,351,615 shares outstanding as
of July 19, 1995.
<PAGE>
FORM 10-Q Index
Part I
Financial Information
Financial Statements
Consolidated Balance Sheets,
June 30, 1995, December 31, 1994, and June 30, 1994 3
Consolidated Statements of Income
for the three and six months ended June 30, 1995 and 1994 4
Consolidated Statements of Changes in Stockholders' Equity
for the six months ended June 30, 1995 and 1994 5
Consolidated Statements of Cash Flows
for the six months ended June 30, 1995 and 1994 6
Notes to Consolidated Financial Statements 8
Management's Discussion and Analysis of Financial Condition
and Results of Operations 11
Average Balance Sheets and Interest Rate Analysis
for the three months ended June 30, 1995, March 31, 1995,
and June 30, 1994 19
Interest Differentials
for the three months ended June 30, 1995, March 31, 1995,
and June 30, 1994 21
Average Balance Sheets and Interest Rate Analysis
for the six months ended June 30, 1995, and June 30, 1994 22
Interest Differentials
for the six months ended June 30, 1995, and June 30, 1994 23
Part II
Other Information
Exhibits and Reports on Form 8-K 24
Management's Responsibility for Financial Reporting 25
Signatures 26
<PAGE>
<TABLE>
Consolidated Balance Sheets
One American Corp. and Subsidiaries
(Unaudited) June 30, December 31, June 30,
1995 1994 1994
<S> <C> <C> <C>
Assets
Cash and Due From Banks $10,632,960 $14,192,548 $9,674,198
Interest Bearing Deposits in Other Banks 278,486 255,819 227,008
Federal Funds Sold and Securities
Purchased Under Resale Agreements 7,075,000 8,200,000 4,675,000
Securities:
Held to Maturity (Fair Value of $18,284,225, $18,305,952,
and $18,843,987, respectively) 17,912,702 18,542,895 18,576,455
Available for Sale (Fair Value of $115,516,202, $111,141,141,
and $122,108,775, respectively) 114,959,261 108,896,370 121,034,586
Total Securities 132,871,963 127,439,265 139,611,041
Loans 101,678,088 95,669,811 87,494,010
Less: Allowance for Loan Losses (3,065,586) (3,077,187) (2,938,163)
Loans, Net 98,612,502 92,592,624 84,555,847
Bank Premises and Equipment 8,789,907 8,970,002 8,635,527
Other Real Estate 4 93,706 405,496
Accrued Interest Receivable 1,698,031 1,739,912 1,665,860
Other Assets 1,861,252 2,358,418 1,082,198
Total Assets $261,820,105 $255,842,294 $250,532,175
Liabilities
Deposits:
Noninterest Bearing $44,611,068 $42,599,135 $37,015,815
Interest Bearing 188,951,401 188,263,334 189,238,687
Total Deposits 233,562,469 230,862,469 226,254,502
Accrued Interest Payable 438,325 334,532 272,757
Other Liabilities 538,650 654,013 619,556
Total Liabilities 234,539,444 231,851,014 227,146,815
Stockholders' Equity
Common Stock-$5.00 par value;
Authorized-10,000,000 shares;
Issued-1,500,000 shares 7,500,000 7,500,000 7,500,000
Surplus 5,000,000 5,000,000 5,000,000
Retained Earnings 15,772,774 13,597,361 12,218,857
Unrealized Gain (Loss) on Securities Available for Sale, Net (367,580) (1,481,548) (708,964)
Treasury Stock - 148,385 shares at cost (624,533) (624,533) (624,533)
Total Stockholders' Equity 27,280,661 23,991,280 23,385,360
Total Liabilities and Stockholders' Equity $261,820,105 $255,842,294 $250,532,175
<FN>
The accompanying notes are an integral part of these financial statements.
</TABLE>
<PAGE>
<TABLE>
Consolidated Statements of Income
One American Corp. and Subsidiaries
(Unaudited) Three Months Ended June 30 Six Months Ended June 30
1995 1994 1995 1994
<S> <C> <C> <C> <C>
Interest Income
Interest and Fees on Loans $2,415,447 $2,056,309 $4,683,539 $4,003,986
Interest on Securities:
Taxable Interest 1,732,248 1,600,765 3,419,305 2,952,173
Nontaxable Interest 155,902 167,364 314,916 339,322
Total Interest on Securities 1,888,150 1,768,129 3,734,221 3,291,495
Other Interest Income 172,031 80,782 316,185 179,974
Total Interest Income 4,475,628 3,905,220 8,733,945 7,475,455
Interest Expense on Deposits 1,614,191 1,319,175 3,121,613 2,583,867
Net Interest Income 2,861,437 2,586,045 5,612,332 4,891,588
Provision for Loan Losses 150,000 75,000 300,000 200,000
Net Interest Income After
Provision for Loan Losses 2,711,437 2,511,045 5,312,332 4,691,588
Other Income
Service Charges on Deposit Accounts 455,829 413,566 921,046 811,036
Gain or (Loss) on Securities 272,454 821,955 274,624 822,836
Gain on Purchased Assets 391,830 361,169 733,599 739,371
Other Operating Income 184,022 93,416 327,764 195,940
Total Other Income 1,304,135 1,690,106 2,257,033 2,569,183
Income Before Other Expenses 4,015,572 4,201,151 7,569,365 7,260,771
Other Expenses
Salaries and Employee Benefits 985,992 976,355 1,967,422 1,877,230
Net Occupancy Expense 266,563 234,279 529,553 474,328
Net ORE Expense (39,393) 2,004 (153,923) (245,734)
Other Operating Expenses 855,972 858,821 1,731,474 1,699,517
Total Other Expenses 2,069,133 2,071,459 4,074,525 3,805,341
Income Before Income Taxes 1,946,439 2,129,692 3,494,839 3,455,430
Applicable Income Taxes 672,424 709,808 1,049,103 1,111,055
Net Income $1,274,015 $1,419,884 $2,445,736 $2,344,375
Net Income Per Share $0.94 $1.05 $1.81 $1.73
Cash Dividends Per Share $0.20 - $0.20 -
<FN>
The accompanying notes are an integral part of these financial statements.
</TABLE>
<PAGE>
<TABLE>
Consolidated Statements of Changes in Stockholders' Equity
One American Corp. and Subsidiaries
Six Months Ended June 30, 1994 and 1995
(Unaudited) 1995 1994
<S> <C> <C>
Common Stock
Balance - Beginning and End of Period $7,500,000 $7,500,000
Surplus
Balance - Beginning and End of Period $5,000,000 $5,000,000
Retained Earnings
Balance - Beginning of Period $13,597,361 $9,874,482
Net Income 2,445,736 2,344,375
Cash Dividends (270,323) -
Balance - End of Period $15,772,774 $12,218,857
Unrealized Gain (Loss) on Securities Available for Sale, Net
Balance - Beginning of Period ($1,481,548) $449,279
Net Change in Unrealized Gain (Loss) 1,113,968 (1,158,243)
Balance - End of Period ($367,580) ($708,964)
Treasury Stock
Balance - Beginning and End of Period ($624,533) ($624,533)
<FN>
The accompanying notes are an integral part of these financial statements.
</TABLE>
<PAGE>
<TABLE>
Consolidated Statements of Cash Flows
One American Corp. and Subsidiaries
Six Months Ended June 30, 1994 and 1995
(Unaudited) 1995 1994
<S> <C> <C>
Cash Flows From Operating Activities
Net Income $2,445,736 $2,344,375
Adjustments to Reconcile Net Income to Net
Cash Provided by Operating Activities:
Gain on Purchased Assets (733,599) (739,371)
Provision for Depreciation 348,720 335,910
Provision for Loan Loss 300,000 200,000
Accretion on Securities (205,090) (61,426)
Provision (Credit) for Deferred Income Taxes (114,335) (47,279)
(Gain) Loss on Sale of Other Real Estate (153,063) (252,719)
(Gain) Loss on Sale of Equipment 5,745 0
Gain on Securities (274,624) (822,836)
Changes in Assets and Liabilities:
(Increase) Decrease in Accrued Interest Receivable 41,881 270,481
(Increase) Decrease in Other Assets 37,640 3,967
Increase (Decrease) in Accrued Interest Payable 103,793 28,899
Increase (Decrease) in Other Liabilities 425,283 519,613
Net Cash Provided by Operating Activities $2,228,087 $1,779,614
Cash Flows From Investing Activities
Net (Increase) Decrease in Interest Bearing Deposits (22,667) -
Proceeds from Maturities or Calls of Securities 25,433,040 75,779,913
Purchases of Securities (28,698,194) (81,758,627)
Net (Increase) Decrease in Federal Funds Sold 1,125,000 14,200,000
Net (Increase) Decrease in Loans (5,632,585) (8,380,336)
Proceeds from Sale of Other Real Estate (214,694) 502,748
Proceeds from Sale of Premises and Equipment 293,071 2,022
Purchases of Premises and Equipment 40,324 (390,060)
Net Cash Used in Investing Activities ($7,676,705) ($44,340)
(Continued on next page)
<FN>
The accompanying notes are an integral part of these financial statements.
</TABLE>
<PAGE>
<TABLE>
Consolidated Statements of Cash Flows
Six Months Ended June 30, 1994 and 1995
(Continued)
(Unaudited) 1995 1994
<S> <C> <C>
Cash Flows From Financing Activities
Net Increase (Decrease) in Demand Deposits, NOW
and Savings Accounts ($5,679,132) ($10,776,313)
Net Increase (Decrease) in Certificates of Deposits 8,379,131 2,269,227
Dividends Paid (810,969) (405,484)
Net Cash Provided (Used) By Financing Activities 1,889,030 (8,912,570)
Decrease in Cash and Cash Equivalents (3,559,588) (7,177,296)
Cash and Cash Equivalents - Beginning of Year 14,192,548 17,078,502
Cash and Cash Equivalents - End of Period $10,632,960 $9,901,206
Supplemental Disclosure of Cash Flow Information:
Income Tax Payments $886,000 $770,000
Interest Paid on Deposits $3,017,820 $2,554,968
Noncash Investing Activities:
Other Real Estate Acquired in Settlement of Loans $46,306 $15,589
Noncash Financing Activities:
Change in Unrealized Gain (Loss) on
Securities Available for Sale $1,687,831 ($1,754,914)
Change in Deferred Tax Effect on
Unrealized Gain (Loss) on Securities Available for Sale $573,862 ($596,671)
<FN>
The accompanying notes are an integral part of these financial statements.
</TABLE>
<PAGE>
One American Corp. and Subsidiaries
Notes to Consolidated Financial Statements
(UNAUDITED)
Summary of Significant Accounting Policies
The accounting principles followed by One American Corp. and
its wholly-owned Subsidiaries, First American Bank and Trust, and
One American Agency, Inc., are those which are generally
practiced within the banking industry. The methods of applying
those principles conform with generally accepted accounting
principles and have been applied on a consistent basis. The
principles which significantly affect the determination of
financial position, results of operations, changes in
stockholders' equity and cash flows are summarized below.
Principles of Consolidation - The consolidated financial
statements include the accounts of One American Corp. and its
wholly-owned subsidiaries, First American Bank and Trust, and One
American Agency, Inc. All significant intercompany balances and
transactions have been eliminated. Certain reclassification to
previously published financial statements have been made to
comply with current reporting requirements.
One American Corp., a Louisiana corporation, was
incorporated on May 14, 1982. At a special meeting on December
14, 1982, the stockholders of First American Bank and Trust
(Bank) approved a Joint Agreement of Merger and Plan of
Reorganization by and among the Bank, First American Interim Bank
(FAIB) and One American Corp. On January 21, 1983, the Bank was
merged into FAIB and the surviving Bank, First American Bank and
Trust became a wholly-owned subsidiary of One American Corp.,
through a one-for-one exchange for all of the outstanding common
stock of First American Bank and Trust. The organization has
been accounted for as a pooling-of-interest.
On July 14, 1983, One American Agency, Inc. was incorporated
under the laws of the State of Louisiana. The primary business
of the Agency is the sale of insurance. The Agency is a wholly-
owned subsidiary of One American Corp.
Securities - Securities classified as held to maturity are
those debt securities the Bank has both the intent and ability to
hold to maturity regardless of changes in market conditions,
liquidity needs or changes in general economic conditions. These
securities are carried at cost adjusted for amortization of
premium and accretion of discount, computed by various methods
approximating the interest method over their contractual lives.
Securities classified as available for sale are those debt
securities that the Bank intends to hold for an indefinite period
of time but not necessarily to maturity. Any decision to sell a
security classified as available for sale would be based on
various factors, including significant movements in interest
rates, changes in the maturity mix of the Bank's assets and
liabilities, liquidity needs, regulatory capital considerations,
and other similar factors. Securities available for sale are
carried at fair value. Unrealized gains or losses are reported
as increases or decreases in stockholders' equity, net of the
related deferred tax effect. Realized gains or losses,
determined on the basis of the cost of specific securities sold,
are included in earnings. The Bank does not engage in trading
account activities.
Loans - Loans are stated at principal amounts outstanding,
less unearned income and allowance for loan losses. Interest on
commercial loans is accrued daily based on the principal
outstanding. Interest on installment loans is recognized and
included in interest income using the sum of digits method which
does not differ materially from the interest method.
The Financial Accounting Standards Board has issued
Statement No. 114, "Accounting by Creditors for Impairment of a
Loan," which was adopted by the Bank on January 1, 1995. The
Statement generally requires impaired loans be measured on the
present value of expected future cash flows discounted at the
loan's effective interest rate, or as an expedient, at the loan's
observable market price or the fair value of the collateral if
the loan is collateral dependent. A loan is impaired when it is
probable the creditor will be unable to collect all contractual
principal and interest payments due in accordance with the terms
of the loan agreement. The effect of this Statement on the
financial statements of the Bank is immaterial.
<PAGE>
Generally, the Bank discontinues the accrual of interest
income when a loan becomes 90 days past due as to interest. When
a loan is placed on nonaccrual status, previously recognized but
uncollected interest is reversed to income. If the underlying
collateral value is sufficient to cover the principal balance
and accrued interest, the Bank may decide to continue the accrual
of interest.
Allowance for Loan Losses - The allowance for loan losses is
an amount which in management's judgment is adequate to absorb
potential losses in the loan portfolio. The allowance for loan
losses is based upon management's review and evaluation of the
loan portfolio. Factors considered in the establishment of the
allowance for loan losses include management's evaluation of
specific loans; the level and composition of classified loans;
historical loss experience; results of examinations by regulatory
agencies; an internal asset review process; expectations of
future economic conditions and their impact on particular
borrowers; and other judgmental factors.
The allowance for loan losses is based on estimates of
potential future losses, and ultimate losses may vary from the
current estimates. These estimates are reviewed periodically,
and as adjustments become necessary, the effect of the change in
estimate is charged to operating expenses in the period incurred.
All losses are charged to the allowance for loan losses when the
loss actually occurs or when management believes that the
collection of the principal is unlikely. Recoveries are credited
to the allowance at the time of recovery.
Bank Premises and Equipment - Bank premises and equipment
are stated at cost less accumulated depreciation. Depreciation
is provided at rates based upon estimated useful service lives
(ten to thirty years for buildings, three to ten years for
equipment) using the straight-line method for financial reporting
purposes and accelerated methods for income tax purposes.
The cost of assets retired or otherwise disposed of and the
related accumulated depreciation are eliminated from the accounts
in the year of disposal and the resulting gains or losses are
included in current operations.
Expenditures for maintenance and repairs are charged to
operations as incurred. Cost of major additions and improvements
are capitalized.
Other Real Estate - Other real estate is comprised of
properties acquired through foreclosure or negotiated settlement.
The carrying value of these properties is lower of cost or fair
market value. Loan losses arising from the acquisition of these
properties are charged against the allowance for loan losses.
Any subsequent market reductions required are charged to other
real estate expense. Revenues and expenses associated with
maintaining or disposing of foreclosed properties are recorded
during the period in which they occurred.
Income Taxes - The provision for income taxes is based on
income as reported in the financial statements after interest
income from state and municipal securities is excluded. Also
certain items of income and expense are recognized in different
time periods for financial statement purposes than for income tax
purposes. Thus provisions for deferred taxes are recorded in
recognition of such timing differences. The Company has adopted
Statement of Financial Accounting Standards No. 109, "Accounting
for Income Taxes" during 1993. The effect of this statement on
the financial statements is deemed to be immaterial. The
corporation and its subsidiaries file a consolidated federal
income tax return. In addition, state income tax returns are
filed individually by company in accordance with state statutes.
Earnings per Common Share - The Computation of earnings per
share and other per share amounts of common stock is based on the
weighted average number of shares of common stock outstanding
during each period, which is 1,351,615 for the three and six
month periods ended June 30, 1995 and 1994.
Statement of Cash Flows - For purposes of reporting cash
flows, cash and cash equivalents includes cash on hand and
amounts due from other banks (including cash items in process of
clearing).
Acquisitions - On August 26, 1994, the Bank acquired certain
assets and liabilities of the former Oak Tree Federal Savings
Bank office located in LaPlace, St. John Parish, Louisiana from
the Resolution Trust Corporation (RTC). Pursuant to a Purchase
and Assumption Agreement, the Bank assumed $4,689,917 of deposits
<PAGE>
and specific liabilities, and purchased assets having a book
value of $11,997. The Bank purchased the deposits at a premium
of $453,000 or 9.65%. The net premium paid on these deposits is
included in other assets on the balance sheet at June 30, 1995
and is being amortized over fifteen years.
<TABLE>
<CAPTION> August 26,
1994
<S> <C>
Assets:
Cash $4,224,920
Loans, Net 11,859
Premium Paid on Deposits 453,000
Other Assets 138
Total Assets $4,689,917
Liabilities:
Deposits $4,675,094
Other Liabilities 14,823
Total Liabilities $4,689,917
</TABLE>
The acquisition was accounted for using the purchase method
of accounting, and the results of operations are included in the
consolidated financial statements from the respective date of
acquisition.
<PAGE>
One American Corp. and Subsidiaries
Management's Discussion and Analysis of Financial
Condition and Results of Operations
June 30, 1995
Second Quarter in Review
One American Corp. experienced additional net interest
income, income from service charges on deposit accounts, and
income from gains on purchased assets for the second quarter of
1995. However, a reduction in gains on sale of securities
available for sale offset these incomes attributing to the
reduction of $145,869 in net income for the current quarter. Net
income for the current quarter of 1995 was $1,274,015 compared to
$1,419,884 for the same quarter of 1994. Earnings per common
share were $.94 and $1.05 for the second quarters of 1995 and
1994, respectively. Return on average assets was .49% for the
current quarter, and .55% in the same quarter of 1994. For
second quarters of 1995 and 1994, return on average equity was
4.60% and 6.34%, respectively. Cash dividends were $.20 per
share for the current quarter and $.00 for the second quarter of
1994. Other income was $1,304,135 in the current quarter and
$1,690,106 in the second quarter of 1994.
Net interest income (FTE) was $2,941,750, 10.08% higher than
the second quarter of 1994, due to an increase in volume of loans
which offset an increase in deposit account costs. The greater
volume of loans has primarily been caused by greater loan demand
in the bank's trade area. The net interest spread (FTE) was
4.18% for the current quarter versus 3.95% for the same quarter
of 1994.
During the second quarter of 1995, in comparison with the
same quarter of 1994, average loans outstanding increased
$15,316,134 or 18.23% to $99,322,761. Average total deposits for
the current quarter decreased $3,024,476 or 1.29% to $230,906,626
when compared to the average total deposits for the same quarter
of 1994. Average total assets for the current quarter increased
$2,425,716 or .94% to $259,576,334 when respectively compared to
the total average assets of the second quarter of 1994.
Net income for the first six months of 1995 was $2,445,736,
an increase of $101,361 or 4.32% over the same period of 1994.
Net interest income (FTE) for the first six months of 1995 was
$5,771,750, an increase of $705, 359 or 13.92% compared to the
same period of 1994. For the first six months of 1995, in
comparison with the same period in 1994, average loans increased
$15, 956,918 or 19.50% to $99,790,446. Average total assets for
the first six months decreased $1,473,638, or .57% to
$256,242,983. Earnings per common share were $1.81 and $1.73 for
the first six months of 1995 and 1994, respectively. Return on
average assets was .95% for the first six months of 1995, and
.91% in the same period of 1994. For the first six months of
1995 and 1994, return on average equity was 9.38% and 10.75%,
respectively. Cash dividends were $.20 per share for the first
six months of 1995 and $.00 for the same period of 1994.
Earnings Analysis
Net Interest Income - The primary source of earnings for
the Bank is net interest income; the difference between interest
and fees generated from interest-earning assets less interest
expense for interest-bearing liabilities. For analytical
purposes, net interest income is presented on a tax equivalent
basis, using a 34% tax rate. Certain earning assets are exempt
from income taxes, therefore a tax equivalent adjustment is
included so that tax exempt earning assets are tax equivalent and
comparable with other taxable earning assets. The primary
factors that affect net interest income are changes in volume and
mix of earning assets and interest-bearing liabilities, along
with changes in market rates.
Net interest income on a fully tax equivalent basis (FTE)
for the current quarter of 1995 was $2,941,750. Net interest
income (FTE) was $2,832,813 and $2,672,263 respectively, for the
first quarter of 1995 and second quarter of 1994. A decrease in
the net interest spread during the current quarter, caused by an
increase in costs of deposits, offset by an increase in volume of
average earning assets, were the reasons for the increase in net
interest income (FTE) of $108,937. The primary cause for the
increase in net interest income (FTE) of $270,566 for the current
<PAGE>
quarter compared to the second quarter of 1994 was the increase
in volume of loans during the current quarter versus the volume
of loans during the same quarter of 1994. For the six month
periods of 1994 and 1995, net interest income (FTE) was
$5,771,750 and $5,066,391, respectively. The increase in net
interest income (FTE) over the prior year period was primarily
due to a wider net interest spread caused by an overall increase
in yield in earning assets which outpaced the cost of deposits.
Also, increased loan volume for the periods in mention assisted
in the increase in net interest income.
Earning Assets, Interest Bearing Liabilities, and Net
Interest Spread - During the second quarter of 1995, average
earning assets were $239,859,229, an increase of $5,464,275 or
2.33% over the first quarter of 1995. The trend in earning
assets over the quarters compared shows a shift in funding toward
the loan portfolio from the securities portfolio. As a
percentage of total average earning assets, interest bearing
deposits accounts were .12%, federal funds sold were 4.37%, loans
were 41.41% and securities were 54.10%. Interest bearing
liabilities as a percentage of interest earning assets were
78.38% for the current quarter compared to 80.34% and 81.03% of
the prior quarter and second quarter of 1994, respectively.
Average interest bearing liabilities were $187,992,268 during the
current quarter, a decrease of $6,588,203 or 3.39% from the second
quarter of 1994. As a percentage of total interest bearing
liabilities, savings and NOW accounts were 29.05%, money market
accounts were 30.00%, and certificates of deposits were 40.95%.
The trend over the quarters compared shows the mix of interest
bearing liabilities shifted to higher interest bearing
certificates of deposit from lower interest bearing savings and
NOW accounts and money market accounts.
For the second quarter of 1995, the average yield on earning
assets was 7.62%, while the average cost of interest bearing
funds was 3.44%, producing a net interest spread (FTE) of 4.18%.
The net interest margin (FTE) was 4.92% for the second quarter of
1995. In comparison, the net interest margin (FTE) for the first
quarter of 1995 was 4.90%. The average yield on earning assets
was 7.51%, while the average cost of interest bearing funds for
the first quarter of 1995 was 3.25%, producing a net spread of
4.26%. A greater increase of 19 basis points in the cost on
interest bearing liabilities than the 11 basis points increase in
the yield of interest earning assets, offset by the increase in
volume of non-interest bearing liabilities from the first quarter
of 1995 to the second quarter of 1995, provided for the slight
increase in the net interest margin of 2 basis points. For the
first quarter of 1995, average earning assets were $234,394,954.
During the first quarter of 1995, interest bearing deposit
accounts were .11%, federal funds sold were 3.92%, loans were
41.06% and securities were 54.91% of total average earning
assets. Average interest bearing liabilities were $188,302,940
during the first quarter of 1995. As a percentage of total
interest bearing liabilities, savings and NOW accounts were
28.86%, money market accounts were 32.30%, and certificates of
deposits were 38.84%.
The net interest margin (FTE) for the second quarter of 1994
was 4.46% compared to 4.92% for the current quarter of 1995. The
cost of interest bearing liabilities during the second quarter of
1994 was 2.72%, while the yield on average earning assets was
6.67%, producing a net interest spread of 3.95%. The 72 basis
point increase in the average cost of interest bearing
liabilities from the second quarter of 1994 to the second quarter
of 1995, was less than the 95 basis point increase in the yield
on interest earning assets for the respective quarters, which
provided for the increase in the net interest spread at the close
of the second quarter of 1995. The increase in the yield on
earning assets outpaced the increase in the cost of interest
bearing liabilities due primarily to the rise in the short end of
the yield curve coinciding with the maturity schedule of the
securities portfolio. For the second quarter of 1994, average
earning assets were $240,134,249. Interest bearing deposit
accounts were .12%, federal funds sold were 3.40%, loans were
34.98% and securities were 61.50% of total average earning assets
during the second quarter of 1994. Average interest bearing
liabilities were $194,580,471 during the second quarter of 1994.
As a percentage of total interest bearing liabilities savings and
NOW accounts were 28.85%, money market accounts were 34.30%, and
certificates of deposits were 36.85%.
The net interest margin (FTE) was 4.91% for the first six
months of 1995 and 4.33 for the same period in 1994. Net
interest spread (FTE) for the first six months of 1995 was 4.21%
a 35 basis point increase from the same period last year. The
yield on average earning assets was 7.56%, 103 basis points
greater than the same period of 1994. The costs of interest
bearing liabilities increased 68 basis points to 3.35%. For the
six month period of 1995, average earning assets were
$237,133,556, $927,465.
<PAGE>
The increase in earning assets was due to more efficient
employment of non-earning assets. As a percentage of average
earning assets, interest bearing deposit accounts were .11%,
federal funds sold were 4.15%, loans were 41.24% and securities
were 54.50%. Average earning assets shifted from securities to
loans when comparing the first six months of 1995 to 1994.
Average interest bearing liabilities decreased $7,480,137 or
3.83% to $187,944,735 as a result of movement in public fund
positions during the first six months of 1994. As a percentage
of interest bearing liabilities, savings and NOW accounts were
28.99%, money market accounts were 31.07%, and certificates of
deposits were 39.95%. A shift from money market accounts to
certificates of deposit were noticed when comparing the two six
month periods. Although average interest bearing liabilities
decreased, average non-interest bearing deposits increased by
$1,657,714 or 4.17% to $41,398,066 offsetting a portion of the
total deposit decrease and benefiting the bank's net interest
margin.
The table of Average Balance Sheets and Interest Rate
Analysis for the three month and six month periods ended June 30,
1995, March 31, 1995, and June 30, 1994 on pages 19, 20, and 22,
and the corresponding table of Interest Differentials on pages 21
and 23, detail the effect a change in average balance outstanding
of assets and liabilities and the change interest yield and
interest costs have on net interest income for the respective
periods.
Provision for Loan Losses
Provision for Loan Losses was $150,000 for both the
first and second quarters of 1995 for a total of $300,00 year to
date. Provision for loan losses were $75,000 for the second
quarter of 1994 and $200,000 for the first six months of 1994.
Net charge-offs (recoveries) were $1,521 for the current
quarter, versus net charge-offs of $310,081 for the first quarter
of 1995 and $21,534 for the second quarter of 1994. As a
percentage of average loans, net charge-offs (recoveries) were
insignificant in the current quarter, .32% and (.03)% in the
first quarter of 1995 and second quarter of 1994, respectively.
Gross charge-offs as a percentage of average loans were
insignificant in the current quarter compared to .38% and .02%
for the first quarter of 1995 and second quarter of 1994,
respectively. Recoveries as a percentage of gross charge-offs
for the current quarter were 88.95% versus 15.34% and 267.81%
respectively for the first quarter of 1995 and second quarter of
1994.
Other Income
Other income including gains and losses from security
transactions for the current quarter was $1,304,135, an increase
of $351,237 or 36.86% from $952,898 for the prior quarter and a
decrease of $385,971 or 22.84% from $1,690,106 for the second
quarter of 1994. Exclusive of security transactions, other
income for the current quarter increased $80,953 or 8.51% over
the first quarter of 1995. Comparing the results of other income
excluding security transactions for the current quarter to the
second quarter of 1994, other income increased $163,530.
Service charges on deposit accounts were $455,829 for the
second quarter of 1995, a decrease of $9,388 or 2.02% from the
first quarter of 1995, and an increase of $42,263 or 10.22% when
compared to the second quarter of 1994.
Gain on purchased assets was $391,830 for the current
quarter, an increase of $50,061 or 14.65% over the first quarter
of 1995 and an increase of $30,661 or 8.49% when compared to the
second quarter of 1994. These gains are recognition of the
collection of principal on certain doubtful loans acquired as a
result of the bank acquisitions. The bank continues to pursue
the collection of these doubtful loans. However, the amount of
future gains, if any are indeterminable.
Other operating income for the current quarter was $184,022,
compared to $143,742 for the first quarter of 1995 and $93,416
for the second quarter of 1994. Included in other operating
income are fees from bankcard services, safe deposit box rentals,
and other operating fees.
Gains from security transactions involving held - to -
maturity securities were $0 for the current quarter, compared to
$2,170 for the first quarter of 1995 and $0 for the second
quarter of 1994. Gains from security transactions involving
<PAGE>
available - for - sale securities were $272,454 for the current
quarter, compared to $0 for the first quarter of 1995 and
$821,955 for the second quarter of 1994. The bank recovered
$272,454 as gains from security transactions during the current
quarter of 1995 from Louisiana Agricultural Finance Authority
Bonds and Louisiana Housing Finance Authority Bonds which were
partially written off in accordance with regulatory directives in
May of 1992. More specifics can be found on the gains recognized
from the Guaranteed Investment Contracts in the discussion
section entitled Non-performing Assets.
For the first six months of 1995, total other income
decreased $312,150 or 12.15% to $2,257,033 compared to the same
period last year. The decrease in total other income represents
an increase of $110,010 or 13.56% in service charges on deposit
accounts, an increase in other operating income of $131,824 or
67.28%, a decrease of $548,212 or 66.62% from gains on security
transactions, and a decrease of $5,772 or .78% from gain on
purchased assets.
Other Expenses
Other expenses were $2,069,133 for the second quarter of
1995 compared to $2,005,394 for the first quarter of 1995, and
$2,071,459 for the second quarter of 1994. Salaries and employee
benefits were $985,992, for the current quarter compared to
$981,430 and $976,355 for the first of 1995 and second quarter of
1994. Net occupancy expense was $266,563 for the current
quarter, compared to $262,990 for the first quarter of 1995 and
$234,279 for the second quarter of 1994. Other operating
expenses were $855,972 for the current quarter, and $875,504 and
$858,821, for the first of 1995 and second quarter of 1994,
respectively.
Net other real estate expense (benefit) was $(39,393) for
the current quarter. This compares to $(114,530) for the first
quarter of 1995 and $2,004, for the second quarter of 1994. Net
other real estate and repossession expense (benefit) is the
difference between operating expense of other real estate and
repossessed assets less the income generated by other real estate
and the net gains from the sale of other real estate and
repossessed assets. For the six months ended June 30, 1995,
other real estate expenses (benefit) totaled $(153,923) compared
to $(245,734) for the same six month period of 1994. The 1995
benefit consisted of other real estate expenses totaling $10,354,
which were offset by the income generated from the operations of
other real estate of $11,214, and net gains on the sale of other
real estate and repossessed assets of $153,063. Management
continues to convert these non performing assets to investable
funds at a value which it feels is beneficial to the earnings of
the bank. Also, management recognizes that the contribution of
the non-recurring income offset of net gains on the sale of other
real estate is going to be less in years to come due to the
reduction of such assets.
Applicable Income Taxes
Applicable income taxes for the current quarter were
$672,424 compared to $376,679 and $709,808 respectively for the
first quarter of 1995 and second quarter of 1994. Effective tax
rates are 34.55%, 24.33% and 33.32%, respectively. For the first
six months of 1995 and 1994, applicable income taxes were
$1,049,103 and $1,111,055 respectively, with respective tax rates
of 30.02% and 32.15%. The Company's effective income tax expense
as a percentage of pretax income is different from statutory
rates due to tax-exempt interest income earned from investments
in state and municipal bonds. Interest income from state and
municipal bonds is generally exempt from federal income taxes.
Liquidity
Liquidity management is the process of ensuring that the
Company's asset and liability structure is the proper mix to meet
the withdrawals of its' depositors, and to fund loan commitments
and other funding requirements. Management's primary source of
funds is the Bank's core deposit base. During the current
quarter, average core deposits were approximately $196,351,000 or
85.03% of total average deposits and 75.64% of total average
assets. This compares to average core deposits of approximately
$189,994,000 during the first quarter of 1995, or 83.35% of total
average deposits and 74.77% of total average assets. Average
core deposits for the second quarter of 1994 were approximately
$190,720,000 or 81.53% of total average deposits and 74.17% of
total average assets. Other sources of liquidity are maturities
in the investment portfolio and loan maturities and repayments.
<PAGE>
Management continually evaluates the maturities and mix of its
earning assets and interest-bearing liabilities to monitor its
ability to meet current and future obligations and to achieve
maximum net interest income. Due to the stability of the core
deposit base as noted above and the maturities of the investment
portfolio, management does not anticipate any difficulties in
meeting the needs of its depositors nor the ability to fund
future loan commitments.
Interest Rate Sensitivity
Interest rate sensitivity is the sensitivity of net interest
income to changes in the market interest rates. This sensitivity
is produced by the different repricing intervals of interest
earning assets and interest bearing liabilities, changes in the
mix of these assets and liabilities, and the growth of these
assets and liabilities. A measurement of interest rate
sensitivity is the interest rate gap. The gap matches the
repricing of interest rate sensitive assets and liabilities for
selective intervals. The Interest Rate Sensitivity Table on page
15 shows the Company has a cumulative negative gap through one
year, predominately in the 0 to 90 days category. Management is
aware of the interest rate risk in this category, and believes
these deposit liabilities are primarily core deposits and
considers the Company's interest rate risk minimal. Management
regularly reviews the Bank's interest rate exposure and liquidity
position. By making adjustments to its mix of assets and
liabilities, as well as adjustments to its cost of funds during
the year, management strives to minimize interest rate
sensitivity. During 1994 the Bank enhanced its interest rate
risk management tools by becoming a member of the Federal Home
Loan Bank of Dallas. The Federal Home Loan Bank of Dallas
provides the Bank the ability to further match the rates and
maturities of its funding with those of earning assets.
<TABLE>
Interest Rate Sensitivity Table
June 30, 1995
(Dollars in Thousands)
<CAPTION> 0-90 91-365 1 Year - Over 5 Non-
Days Days 5 Years Years Sensitive Total
<S> <C> <C> <C> <C> <C> <C>
Assets
Securities $43,740 $47,191 $31,105 $10,836 $0 $132,872
Loans, Net of Unearned Income 11,304 20,448 48,310 18,401 155 98,613
Federal Funds Sold 7,075 - - - - 7,075
Other Assets 278 - - - 22,972 23,260
Total Assets $62,397 $67,639 $79,415 $22,982 $23,127 $261,820
Liabilities
NOW and Super NOW Deposits $21,883 $- $- $- $- $21,883
Insured Money Market Accounts 55,570 - - - - 55,570
Savings Deposits 32,913 - - - - 32,913
Certificates of Deposits over $100,000 5,409 3,199 1,836 - - 10,444
Other Certificates of Deposits 32,548 20,804 14,777 12 - 68,141
Demand Deposits - - - - 44,611 44,611
Other Liabilities - - - - 977 977
Stockholders' Equity - - - - 27,281 27,281
Total Liabilities and
Stockholders' Equity $148,323 $24,003 $16,613 $12 $72,869 $261,820
Interest Rate Sensitivity Gap ($85,926) $43,636 $62,802 $29,225 ($49,737) -
Cumulative Interest Rate
Sensitivity Gap ($85,926) ($42,290) $20,512 $49,737 -
</TABLE>
Off-Balance Sheet Activities
In the normal course of business the Company enters into
agreements which, for accounting purposes, are not recorded in
the financial statements. These loan commitments and lines of
credit are commitments to customers to extend credit at specified
rates, duration and purpose. The commitments adhere to normal
lending policy and credit reviews. Available loan commitments at
June 30, 1995 were $5,933,466, compared to $6,843,324 at March
31, 1995, and $5,000,949 at June 30, 1994. The bank had letters
of credit of $854,300 issued at June 30, 1995 compared to
$311,700 at March 31, 1995, and $394,360 at June 30, 1994.
Additionally, the Bank has deposit customers who have credit
lines available to them through their deposit accounts. At June
30, 1995, the available portion of these credit lines were
$630,937. At March 31, 1995, and June 30, 1994, the available
portion of these credit lines were $502,104 and $509,987,
respectively. The Bank reserves the right to rescind these
credit lines. These credit lines provide a source of income to
the Bank through service fees charged and interest earned on
balances outstanding. These lines are regularly reviewed and do
not pose a material credit risk to the Bank. The Bank began
issuing credit cards during the third quarter of 1992. As of
June 30, 1995, the aggregate credit available was $2,316,016. At
March 31, 1995 and June 30, 1994, the aggregate available credit
was $2,191,281 and $1,910,948, respectively.
Additionally the Bank has privity to agreements to fund and
sell long term mortgages to third party mortgage companies. In
the past, some of the mortgage loans were sold with recourse of
six months which provided the mortgage companies an option to put
back the mortgage loan to the Bank if the borrower became 60 days
delinquent according to the loan repayment schedule. Put back
options no longer exist between the Bank and the long term
mortgage companies.
Securities
Included in the category of Securities of Other US
Government Agencies at June 30, 1995 is $19,600,000 par value of
structured notes, with an amortized cost of $19,612,775 and a
fair value of $18,754,750, resulting in an unrealized loss in the
amount $858,025 at June 30, 1995. The structured notes, which
are issued by US government sponsored agencies, are debt
securities whose cash flows are dependent on one or more indices
in ways that create interest rate risk. Management understands
the risks associated with these types of instruments and has the
capability to effectively monitor the notes activity. Although
classified in the available for sale category, it is management's
intention to hold the structured notes until the notes mature at
par value.
Allowance for Loan Losses
The allowance for loan losses was $3,065,586 at June 30,
1995 or 3.02% of net loans outstanding. At March 31, 1995, the
allowance for loan losses was $2,917,107 or 2.98% of net loans
outstanding and $2,938,163 or 3.36% of net loans outstanding at
June 30, 1994. The allowance for loan losses account represents
amounts available for possible future losses based on
management's evaluation of the loan portfolio. To ascertain the
potential losses in the portfolio, management reviews past due
loans on a monthly basis. Additionally, the loan review function
performs an ongoing review of the loan portfolio. Loans are
reviewed for compliance to the Bank's lending policy and the
borrower's current financial condition and ability to meet
scheduled repayment terms. Based on these exercises and
management's knowledge of the Bank's borrowers, the allowance for
loan losses in management's judgment, is adequate to absorb
potential loan losses based on current review of the quality of
the loan portfolio.
Nonperforming Assets
Nonperforming assets include nonaccrual and restructured
loans and other real estate. Generally, loans are considered
nonaccrual when the interest becomes 90 days past due or when
there is uncertainty about the repayment of principal and
interest in accordance with the terms of the loans. Nonaccrual
loans at June 30, 1995, were $155,632, compared to $244,807 at
March 31, 1995. At June 30, 1994, nonaccrual loans were
$212,784. Loans past due 90 days and still accruing at June 30,
1995 and March 31, 1994 were $294,216 and $244,807, respectively.
At June 30, 1994, loans past due 90 days and still accruing were
$267,195. At June 30, 1995, nonaccrual loans were .15% of gross
loans outstanding and 5.08% of the allowance for loan losses.
For March 31, 1995 and June 30, 1994, nonaccrual loans were .25%
and 8.39% of gross loans outstanding and .24% and 7.24% of the
allowance for loan losses, respectively. The ratios clearly show
<PAGE>
that the Bank has decreased its exposure to non-accrual and
delinquent loans greater than 90 days over the last twelve
months. Management intends for this positive trend to continue.
Other real estate is properties held for sale acquired
though foreclosure or negotiated settlements of debt. Other real
estate was insignificant at the close of the current quarter
having a carry value of $4. At December 31, 1994 and
June 30, 1994, other real estate was $93,706 and $405,496,
respectively.
The Bank also has approximately $785,592 in par value of
Louisiana Agricultural Finance Authority Bonds and Louisiana
Housing Finance Authority Bonds with a book value of $1, on
nonaccrual status. Under a directive from state regulatory
agencies the original $2,350,000 in par value of the Guaranteed
Investment Contracts were placed on nonaccrual status in May,
1992. Due to the directive, the bonds were written down to $.20
on the dollar or $470,000. While management has written down
these bonds in accordance with regulatory policy as mentioned
above, management continues to feel that the fair value was not
representative of the potential liquidation value of these bonds.
Management is of the opinion that the permanent impairment of the
bonds was not in excess of the prescribed regulatory write downs.
A class action suit was filed on behalf of the bondholders. In
summary, the suit sought a determination of the priority
treatment the bondholders would receive under California statutes
in the liquidation of Executive Life Insurance Company. Under
Priority 5 the Guaranteed Investment Contracts (GICs), which
support the municipal bonds, would be treated as insurance
policies and would have the same payout ratio as other policies.
Under Priority 6, the GICs would have the status of a general
unsecured creditor. On November 15, 1992, the Superior Court in
California ruled the GICs were a Priority 5. As a result of
pending litigation, continued settlement proposals are taking
place between the guarantors of the bonds and the bondholders.
To date, the Bank has recovered approximately $1,564,408 as
partial payments of the $2,350,000 in original par value. Of the
$1,564,408, $1,094,409 were recognized as gains on securities
available for sale since the original write down. The remaining
$469,999 was applied against the book value leaving the bonds
with a carrying value of $1. Of the $1,094,409 in gains
recognized since the write down, $821,955 were recognized in the
year 1994 and $272,454 has been recognized thus far in the
current year. The Bank continues to pursue the collection of
principal on these securities. However, the amount of any future
fulfillment of these collection actions remain uncertain.
Capital
The strength of a company is measured by the company's
capital, earnings history, asset quality, and management.
Capital can be increased by the retention of earnings and
issuance of equity stock. Management feels the current trend of
earnings and dividend distribution is sufficient to maintain its
capital adequacy requirements.
The Bank is required to maintain minimum amounts of capital
to total risk-weighted assets, as defined by the regulators. The
guidelines require total capital of 8.00%, half of which must be
Tier 1 capital. The computation of risk-weighted ratios follow
the transitional rule, which currently does not include the
unrealized gain (loss) on securities available for sale in Tier 1
capital.
The leverage ratio consists of Tier 1 capital as a
percentage of average total assets. The minimum leverage ratio
for all banks and bank holding companies is 3.00%. This minimum
ratio is dependent upon the strength of the individual bank or
holding company and may be increased by regulatory authorities on
an individual basis. The 3.00% minimum was established to make
certain that all banks have a minimum capital level to support
their assets, regardless of risk profile. The regulators have
not yet established minimum leverage ratios for the Company. As
shown in the table Capital Adequacy Ratios on the following page,
the Company's ratios for the reporting periods exceed regulatory
minimums.
<PAGE>
<TABLE>
Capital Adequacy Ratios
(Dollars in Thousands) June 30, December 31, June 30,
1995 1994 1994
<S> <C> <C> <C>
Tier 1 Capital:
Stockholders' Equity $27,649 $25,473 $24,094
Tier 2 Capital:
Allowance for Loan Losses 1,432 1,360 1,241
Total Capital $29,081 $26,833 $25,335
Risk-Weighted Ratios:
Tier 1 Capital 24.49% 23.42% 24.27%
Total Capital 25.76% 24.67% 25.52%
Leverage Ratio 10.64% 10.01% 9.37%
Stockholders' Equity 10.57% 9.96% 9.62%
</TABLE>
The Company's dividends are determined by its Board of
Directors. The current policy is to maintain dividends at a
level which ensures that the Company is able to maintain
sufficient regulatory capital levels. The Company's primary
source of funds is the dividend received from the Bank. Under
current dividend limitations, the Bank could pay in dividends
without regulatory approval approximately $5,820,549. The
Company carries no debt, therefore future liquidity needs are
limited to the payment of any declared dividends. Should a
regulatory agency limit the Bank from paying dividends, the
Company maintains sufficient liquidity to maintain its
operations.
<PAGE>
<TABLE>
AVERAGE BALANCE SHEETS AND INTEREST RATE ANALYSIS
Three-months ended June 30, 1995, March 31, 1995, and June 30, 1994
<CAPTION>
Second Quarter 1995 First Quarter 1995
AVERAGE INCOME/ YIELD AVERAGE INCOME/ YELD/
BALANCE EXPENSE RATE BALANCE EXPENSE RATE
<S> <C> <C> <C> <C> <C> <C>
Assets
Interest Bearing Deposit Accounts $270,170 $4,065 6.03% $257,201 $3,500 5.52%
Federal Funds Sold and Securities
Purchased under Resale Agreements 10,492,825 155,885 5.96% 9,184,222 129,355 5.71%
Securities:
Taxable 119,103,682 1,744,329 5.87% 117,858,330 1,698,356 5.84%
Non-Taxable* 10,669,791 236,215 8.88% 10,854,096 240,931 9.00%
Loans - Net 99,322,761 2,415,448 9.75% 96,241,105 2,268,092 9.56%
Total Earning Assets $239,859,229 $4,555,942 7.62%$234,394,954 $4,340,234 7.51%
Allowance for Loan Losses (2,966,898) (2,895,178)
Nonearning Assets 22,684,003 22,620,681
Total Assets $259,576,334 $254,120,457
Liabilities and Stockholders' Equity
Savings and NOW Accounts $54,602,528 $325,826 2.39% $54,350,365 $322,357 2.41%
Insured Money Market Accounts 56,388,346 398,059 2.83% 60,812,711 436,445 2.91%
Certificates of Deposit 77,001,395 890,307 4.64% 73,139,864 748,619 4.15%
Total Interest Bearing Liabilities $187,992,269 $1,614,192 3.44%$188,302,940 $1,507,421 3.25%
Demand Deposits 42,914,358 39,642,200
Other Liabilities 979,343 708,759
Stockholders' Equity 27,690,364 25,466,558
Total Liabilities and Stockholders' Equity$259,576,334 $254,120,457
Net Interest Income - Tax Equivalent Basis* 2,941,750 2,832,813
Tax Equivalent Adjustment (80,313) (81,917)
Net Interest Income $2,861,437 $2,750,896
Net Interest Income - Spread* 4.18% 4.26%
Net Interest Income as a % of Total Earning Assets* 4.92% 4.90%
*Tax Equivalent Basis - 34% Rate for the periods dated
</TABLE>
<PAGE>
<TABLE>
AVERAGE BALANCE SHEETS AND INTEREST RATE ANALYSIS
Three-months ended June 30, 1995, March 31, 1995, and June 30, 1994
<CAPTION>
Second Quarter 1994
AVERAGE INCOME/ YIELD/
BALANCE EXPENSE RATE
<S> <C> <C> <C>
Assets
Interest Bearing Deposit Accounts $260,028 $1,078 1.66%
Federal Funds Sold and Securities
Purchased under Resale Agreements 8,175,824 79,704 3.91%
Securities:
Taxable 136,369,072 1,600,765 4.71%
Non-Taxable* 11,322,698 253,582 8.98%
Loans - Net 84,006,627 2,056,309 9.82%
Total Earning Assets $240,134,249 $3,991,438 6.67%
Allowance for Loan Losses (2,872,087)
Nonearning Assets 19,888,457
Total Assets $257,150,619
Liabilities and Stockholders' Equity
Savings and NOW Accounts $56,128,565 $336,456 2.40%
Insured Money Market Accounts 66,744,292 442,125 2.66%
Certificates of Deposit 71,707,614 540,594 3.02%
Total Interest Bearing Liabilities $194,580,471 $1,319,175 2.72%
Demand Deposits 39,350,631
Other Liabilities 827,787
Stockholders' Equity 22,391,730
Total Liabilities and Stockholders' Equity$257,150,619
Net Interest Income - Tax Equivalent Basis* 2,672,263
Tax Equivalent Adjustment (86,217)
Net Interest Income $2,586,046
Net Interest Income - Spread* 3.95%
Net Interest Income as a % of Total Earning Assets* 4.46%
*Tax Equivalent Basis - 34% Rate for the periods dated
</TABLE>
<PAGE>
<TABLE>
INTEREST DIFFERENTIALS
Three-months ended June 30, 1995, March 31, 1995, and June 30, 1994
<CAPTION>
Second Quarter 1995 Second Quarter 1995
vs vs
First Quarter 1995 First Quarter 1994
Change due to Total Change due to Total
Volume Rate Change Volume Rate Change
<S> <C> <C> <C> <C> <C> <C>
Interest Earning Assets:
Interest Bearing Deposit Accounts $176 $389 $565 $42 $2,945 $2,987
Federal Funds Sold 18,431 8,100 26,531 22,588 53,593 76,181
Securities:
Taxable 17,946 28,027 45,973 (202,669) 346,233 143,564
Non-Taxable* (4,091) (625) (4,716) (14,622) (2,745) (17,367)
Loans 72,625 74,731 147,356 374,907 (15,768) 359,139
Total Interest Income $105,087 $110,621 $215,708 $180,245 $384,258 $564,504
Interest Bearing Liabilities:
Savings and NOW Accounts $1,495 $1,973 $3,469 ($9,149) ($1,481) ($10,630)
Insured Money Market Accounts (31,754) (6,632) (38,387) (68,599) 24,533 (44,066)
Certificates of Deposit 39,524 102,164 141,690 39,909 309,804 349,713
Total Interest Expense $9,266 $97,505 $106,773 ($37,838) $332,856 $295,017
Increase (Decrease) in
Interest Differential $95,821 $13,116 $108,938 $218,084 $51,402 $269,487
*Tax Equivalent Basis - 34% Rate for the periods dated
</TABLE>
<PAGE>
<TABLE>
AVERAGE BALANCE SHEETS AND INTEREST RATE ANALYSIS
Six-months ended June 30, 1995, and June 30, 1994
<CAPTION>
June 30, 1995 June 30, 1994
AVERAGE INCOME/ YIELD AVERAGE INCOME/ YIELD/
BALANCE EXPENSE RATE BALANCE EXPENSE RATE
<S> <C> <C> <C> <C> <C> <C>
Assets
Interest Bearing Deposit Accounts $254,070 $7,564 6.00% $103,583 $1,078 2.10%
Federal Funds Sold and Securities
Purchased under Resale Agreements 9,842,138 285,240 5.84% 10,737,652 178,896 3.36%
Securities:
Taxable 118,485,467 3,442,686 5.86% 132,091,631 2,952,173 4.51%
Non-Taxable* 10,761,435 474,333 8.89% 11,439,697 514,124 9.06%
Loans - Net 97,790,446 4,683,539 9.66% 81,833,528 4,003,986 9.87%
Total Earning Assets $237,133,556 $8,893,362 7.56%$236,206,091 $7,650,257 6.53%
Allowance for Loan Losses (2,931,236) (2,819,935)
Nonearning Assets 22,040,663 24,330,465
Total Assets $256,242,983 $257,716,621
Liabilities and Stockholders' Equity
Savings and NOW Accounts $54,477,143 $648,183 2.40% $56,653,010 $663,547 2.36%
Insured Money Market Accounts 58,388,761 834,504 2.88% 68,876,365 882,377 2.58%
Certificates of Deposit 75,078,831 1,638,925 4.40% 69,895,497 1,037,943 2.99%
Total Interest Bearing Liabilities $187,944,735 $3,121,612 3.35%$195,424,872 $2,583,867 2.67%
Demand Deposits 41,398,066 39,740,352
Other Liabilities 828,740 742,710
Stockholders' Equity 26,071,442 21,808,687
Total Liabilities and Stockholders' Equity$256,242,983 $257,716,621
Net Interest Income - Tax Equivalent Basis* 5,771,750 5,066,390
Tax Equivalent Adjustment (159,419) (174,802)
Net Interest Income $5,612,331 $4,891,588
Net Interest Income - Spread* 4.21% 3.87%
Net Interest Income as a % of Total Earning Assets* 4.91% 4.33%
*Tax Equivalent Basis - 34% Rate for the periods dated
</TABLE>
<PAGE>
<TABLE>
INTEREST DIFFERENTIALS
Six-months ended June 30, 1995, and June 30, 1994
<CAPTION>
June 30, 1995
vs
June 30, 1994
Change due to Total
Volume Rate Change
<S> <C> <C> <C>
Interest Earning Assets:
Interest Bearing Deposit Accounts $1,566 $4,920 $6,486
Federal Funds Sold (14,920) 121,265 106,345
Securities:
Taxable (304,090) 794,603 490,513
Non-Taxable* (30,483) (9,308) (39,791)
Loans 780,747 (101,194) 679,551
Total Interest Income $432,820 $810,285 $1,243,105
Interest Bearing Liabilities:
Savings and NOW Accounts ($25,485) $10,121 ($15,364)
Insured Money Market Accounts (134,358) 86,485 (47,872)
Certificates of Deposit 76,972 524,010 600,982
Total Interest Expense ($82,871) $620,616 $537,744
Increase (Decrease) in
Interest Differential $515,690 $189,669 $705,360
*Tax Equivalent Basis - 34% Rate for the periods dated
</TABLE>
<PAGE>
Part II
Item 6. Exhibits and Reports on Form 8-K
(b) Reports on Form 8-K
None
<PAGE>
Management's Responsibility for Financial Reporting
The management of One American Corp. and Subsidiaries is
responsible for the preparation of the financial statements,
related financial data and other information in this quarterly
report. The financial statements are prepared in accordance
with generally accepted accounting principles and include some
amounts that are necessarily based on management's informed
estimates and judgments, with consideration given to
materiality. All financial information contained in this
quarterly report is consistent with that in the financial
statements.
Management fulfills its responsibility for the integrity,
objectivity, consistency and fair presentation of the financial
statements and financial information through an accounting
system and related internal accounting controls that are
designed to provide reasonable assurance that assets are
safeguarded and that transactions are authorized and recorded
in accordance with established policies and procedures. The
concept of reasonable assurance is based on the recognition
that the cost of a system of internal accounting controls
should not exceed the related benefits. As an integral part of
the system of internal accounting controls, One American Corp.
and Subsidiaries has a professional staff who monitors
compliance with and assess the effectiveness of the system of
internal accounting controls and coordinate audit coverage with
the independent public accountants.
The Audit Committee of the Board of Directors, composed
solely of outside directors, meets periodically with
management, and the independent public accountants to review
matters relating to financial reporting, internal accounting
control and the nature, extent and results of the audit effort.
The independent public accountants have direct access to the
Audit Committee with or without management present.
The financial statements as of December 31, 1994, were
examined by Hannis T. Bourgeois & Co., L. L. P. independent
public accounts, who rendered an independent professional
opinion on the financial statements prepared by management.
The financial statements as of June 30, 1995, have not been
reviewed by Hannis T. Bourgeois & Co., L. L. P.
<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, thereunto duly
authorized.
One American Corp.
By: /S/J. B. Falgoust
J. B. Falgoust, President
July 27, 1995
Date
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 9
<MULTIPLIER> 1
<S> <C>
<FISCAL-YEAR-END> DEC-31-1994
<PERIOD-START> JAN-01-1995
<PERIOD-END> JUN-30-1995
<PERIOD-TYPE> 6-MOS
<CASH> 10632960
<INT-BEARING-DEPOSITS> 278486
<FED-FUNDS-SOLD> 7075000
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 114959261
<INVESTMENTS-CARRYING> 17912702
<INVESTMENTS-MARKET> 18284225
<LOANS> 101678088
<ALLOWANCE> 3065586
<TOTAL-ASSETS> 261820105
<DEPOSITS> 233562469
<SHORT-TERM> 0
<LIABILITIES-OTHER> 976975
<LONG-TERM> 0
<COMMON> 7500000
0
0
<OTHER-SE> 19780661
<TOTAL-LIABILITIES-AND-EQUITY> 261820105
<INTEREST-LOAN> 4683539
<INTEREST-INVEST> 3734221
<INTEREST-OTHER> 308621
<INTEREST-TOTAL> 8733945
<INTEREST-DEPOSIT> 7564
<INTEREST-EXPENSE> 3121613
<INTEREST-INCOME-NET> 5612332
<LOAN-LOSSES> 300000
<SECURITIES-GAINS> 274624
<EXPENSE-OTHER> 4074526
<INCOME-PRETAX> 3494839
<INCOME-PRE-EXTRAORDINARY> 3494839
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 2445736
<EPS-PRIMARY> 1.81
<EPS-DILUTED> 1.81
<YIELD-ACTUAL> 7.56
<LOANS-NON> 155632
<LOANS-PAST> 294216
<LOANS-TROUBLED> 201044
<LOANS-PROBLEM> 2302953
<ALLOWANCE-OPEN> 3077187
<CHARGE-OFFS> 380014
<RECOVERIES> 68413
<ALLOWANCE-CLOSE> 3065586
<ALLOWANCE-DOMESTIC> 2713185
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 352401
</TABLE>
