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 Ending March 31, 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 May 3, 1995.
<PAGE>
FORM 10-Q Index
Part I
Financial Information
Financial Statements
Consolidated Balance Sheets,
March 31, 1995, December 31, 1994, and March 31, 1994 3
Consolidated Statements of Income
for the three months ended March 31, 1995 and 1994 4
Consolidated Statements of Changes in Stockholders' Equity
for the three months ended March 31, 1995 and 1994 5
Consolidated Statements of Cash Flows
for the three months ended March 31, 1995 and 1994 6
Notes to Consolidated Financial Statements 8
Management's Discussion and Analysis of Financial Condition 11
and Results of Operation
Average Balance Sheets and Interest Rate Analysis
for the three months ended March 31, 1995, December 31, 1994,
and March 31, 1994 18
Interest Differentials
for the three months ended March 31, 1995, December 31, 1994,
and March 31, 1994 20
Part II
Other Information
Exhibits and Reports on Form 8-K 21
Management's Responsibility for Financial Reporting 22
Signatures 23
<PAGE>
<TABLE>
Consolidated Balance Sheets
One American Corp. and Subsidiaries
(Unaudited) March 31, December 31, March 31,
1995 1994 1994
<S> <C> <C> <C>
Assets
Cash and Due From Banks $10,345,127 $14,192,548 $10,017,719
Interest Bearing Deposits in Other Banks 261,319 255,819 0
Federal Funds Sold and Securities
Purchased Under Resale Agreements 13,175,000 8,200,000 19,250,000
Securities:
Held to Maturity (Fair Value of $18,017,057, $18,305,952,
and $14,576,598, respectively) 17,931,254 18,542,895 14,104,645
Available for Sale (Amortized Cost of $107,758,748,
$111,141,141 and $127,162,071, respectively) 106,221,267 108,896,370 126,884,118
Total Securities 124,152,521 127,439,265 140,988,763
Loans 98,013,755 95,669,811 81,485,044
Less: Allowance for Loan Losses (2,917,106) (3,077,187) (2,841,629)
Loans, Net 95,096,649 92,592,624 78,643,415
Bank Premises and Equipment 8,928,465 8,970,002 8,625,053
Other Real Estate 46,310 93,706 400,184
Accrued Interest Receivable 1,499,512 1,739,912 1,355,379
Other Assets 1,967,963 2,358,418 855,999
Total Assets $255,472,866 $255,842,294 $260,136,512
Liabilities
Deposits:
Noninterest Bearing $40,196,580 $42,599,135 $38,742,970
Interest Bearing 188,821,486 188,263,334 198,174,842
Total Deposits 229,018,066 230,862,469 236,917,813
Accrued Interest Payable 325,790 334,532 213,413
Other Liabilities 499,199 654,013 514,297
Total Liabilities 229,843,055 231,851,014 237,645,523
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 14,769,082 13,597,361 10,798,973
Unrealized Gain (Loss) on Securities Available for Sale, Net (1,014,738) (1,481,548) (183,450)
Treasury Stock - 148,385 shares at cost (624,533) (624,533) (624,533)
Total Stockholders' Equity 25,629,811 23,991,280 22,490,990
Total Liabilities and Stockholders' Equity $255,472,866 $255,842,294 $260,136,512
<FN>
The accompanying notes are an integral part of these financial statements.
</TABLE>
<PAGE>
<TABLE>
Consolidated Statements of Income
One American Corp. and Subsidiaries
Three months ended March 31, 1995 and 1994
(Unaudited) 1995 1994
<S> <C> <C>
Interest Income
Interest and Fees on Loans $2,268,092 $1,947,677
Interest on Securities:
Taxable Interest 1,687,056 1,351,409
Nontaxable Interest 159,014 171,958
Total Interest on Securities 1,846,071 1,523,367
Other Interest Income 144,154 99,191
Total Interest Income 4,258,317 3,570,235
Interest Expense on Deposits 1,507,421 1,264,693
Net Interest Income 2,750,896 2,305,542
Provision for Loan Losses 150,000 125,000
Net Interest Income After
Provision for Loan Losses 2,600,896 2,180,542
Other Income
Service Charges on Deposit Accounts 465,217 397,470
Gain or (Loss) on Securities 2,170 881
Gain on Purchased Assets 341,769 378,202
Other Operating Income 143,742 102,525
Total Other Income 952,898 879,078
Income Before Other Expenses 3,553,794 3,059,620
Other Expenses
Salaries and Employee Benefits 981,430 900,876
Net Occupancy Expense 262,990 240,049
Net ORE Expense (114,530) (247,738)
Other Operating Expenses 875,504 840,695
Total Other Expenses 2,005,394 1,733,882
Income Before Income Taxes 1,548,400 1,325,738
Applicable Income Taxes 376,679 401,247
Net Income $1,171,721 $924,491
Net Income Per Share $0.87 $0.68
<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
Three months ended March 31, 1995 and 1994
(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 1,171,721 924,491
Balance - End of Period $14,769,082 $10,798,973
Unrealized Gain (Loss) on Securities Available for Sale, Net
Balance - Beginning of Period ($1,481,548) $0
Net Change in Unrealized Gain (Loss) 466,810 (183,450)
Balance - End of Period ($1,014,738) ($183,450)
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
Three months ended March 31, 1995 and 1994
(Unaudited) 1995 1994
<S> <C> <C>
Cash Flows From Operating Activities
Net Income $1,171,721 $924,491
Adjustments to Reconcile Net Income to Net
Cash Provided by Operating Activities:
Gain on Purchased Assets (341,769) (378,202)
Provision for Depreciation 176,980 169,279
Provision for Loan Loss 150,000 125,000
Accretion on Securities (77,370) (375,715)
Provision (Credit) for Deferred Income Taxes (41,881) (47,279)
(Gain) Loss on Sale of Other Real Estate (106,422) (252,719)
(Gain) Loss on Sale of Equipment 5,745 0
Gain on Securities (2,170) (881)
Changes in Assets and Liabilities:
(Increase) Decrease in Accrued Interest Receivable 240,400 580,962
(Increase) Decrease in Other Assets 191,858 (40,553)
Increase (Decrease) in Accrued Interest Payable (8,742) (30,445)
Increase (Decrease) in Other Liabilities 385,832 414,354
Net Cash Provided by Operating Activities 1,744,182 1,088,292
Cash Flows From Investing Activities
Net (Increase) Decrease in Interest Bearing Deposits (5,500) 0
Proceeds from Maturities or Calls of Securities 18,721,766 38,357,157
Proceeds from Sale of Securities 0 217,403
Purchases of Securities (14,648,194) (45,642,427)
Net (Increase) Decrease in Federal Funds Sold (4,975,000) (375,000)
Net (Increase) Decrease in Loans (2,358,562) (2,748,761)
Proceeds from Sale of Other Real Estate 200,124 502,748
Proceeds from Sale of Premises and Equipment 40,324 23
Purchases of Premises and Equipment (181,512) (210,956)
Net Cash Used in Investing Activities ($3,206,554) ($9,899,813)
<FN>
(Continued on next page)
</TABLE>
<PAGE>
<TABLE>
Consolidated Statements of Cash Flows
Three months ended March 31, 1995 and 1994
(Continued)
(Unaudited) 1995 1994
<S> <C> <C>
Cash Flows From Financing Activities
Net Increase (Decrease) in Demand Deposits, NOW
and Savings Accounts ($6,603,638) $429,308
Net Increase (Decrease) in Certificates of Deposits 4,759,235 1,726,914
Dividends Paid (540,646) (405,484)
Net Cash Provided (Used) By Financing Activities (2,385,049) 1,750,738
Decrease in Cash and Cash Equivalents (3,847,421) (7,060,783)
Cash and Cash Equivalents - Beginning of Year 14,192,548 17,078,502
Cash and Cash Equivalents - End of Period $10,345,127 $10,017,719
Supplemental Disclosure of Cash Flow Information:
Income Tax Payments $0 $0
Interest Paid on Deposits $1,516,164 $1,051,280
Noncash Investing Activities:
Other Real Estate Acquired in Settlement of Loans $46,306 $60,208
Noncash Financing Activities:
Change in Unrealized Gain (Loss) on
Securities Available for Sale $707,289 ($277,954)
Change in Deferred Tax Effect on
Unrealized Gain (Loss) on Securities Available for Sale $240,478 ($94,504)
<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 whollyowned 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 expidient, 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 contractural 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>
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 or charged to the
allowance for loan losses. 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 months ending March 31, 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 and specific liabilities, and
<PAGE>
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 March 31, 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
March 31, 1995
First Quarter in Review
Additional net interest income, income from service
charges on deposit accounts, and other income offset slightly
by an increase in other expenses contributed to the $247,230
increase in One American Corp.'s net income for the first
quarter of 1995. Net income for the current quarter of 1995 was
$1,171,721 compared to $924,491 for the same quarter of 1994.
Earnings per common share were $.87 and $.68 for the first
quarters of 1995 and 1994, respectively. Return on average
assets was .46% for the current quarter, and .37% in the same
quarter of 1994. For first quarters of 1995 and 1994, return on average
equity was 4.60% and 4.14%, respectively. Other income was $952,898 in
the current quarter and $879,078 in the first quarter of 1994.
Net interest income was $2,750,896, 19.32% higher than the
first quarter of 1994, due to a wider net interest spread. The
wider net interest spread was primarily caused by higher yields
in the bank's security portfolio due to the past rising rate
environment and short nature of the portfolio maturities.
Also, the volume of loans in the Bank's loan portfolio
increased. The net interest spread (FTE) was 4.26% for the
current quarter versus 3.77% for the same quarter of 1994.
During the first quarter of 1995, in comparison with the
same quarter of 1994, average loans outstanding increased
$16,604,821 or 20.85% to $96,241,105. Average total deposits
for the current quarter decreased $8,107,694 or 3.43% to
$227,945,140 when compared to the average total deposits for
the same quarter of 1994. Average total assets for the current
quarter decreased $4,934,173 or 1.90% to $254,120,457 when
respectively compared to the total average assets of the first
quarter 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 first quarter of 1995 was $2,832,813. Net interest
income (FTE) was $2,806,619 and $2,394,127 respectively, for
the fourth and first quarters of 1994. An increase in the net
interest spread and margin during the current quarter, caused
primarily by increased yields experienced in the securities
portfolio and increased volume in the loan portfolio were the
reasons for the increase in net interest income (FTE) of
$26,194 and $438,686, when compared to the prior quarter and
first quarter of 1994, respectively.
Earning Assets, Interest Bearing Liabilities, and Net
Interest Spread - During the first quarter of 1995, average
earning assets were $234,394,954, respective increases of
$1,557,904 or .67% and $1,756,343 or .75% over the fourth and
first quarters of 1994. The trend in earning assets over the
quarters compared shows a shift toward the loan portfolio from
the securities portfolio. As a percentage of total average
earning assets, interest bearing deposits accounts were .11%,
federal funds sold were 3.92%, loans were 41.06% and securities
were 54.91%. Interest bearing liabilities as a percentage of
interest earning assets were 80.34% for the current quarter
compared to 80.15% and 84.49% of the prior quarter and first
quarter of 1994, respectively. Average interest bearing
liabilities were $188,302,940 during the current quarter, an
increase of $1,695,044 or .91% over the fourth quarter of 1994
<PAGE>
and decrease of $8,244,176 or 4.19% from the first quarter of
1994. 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
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.
The average yield on earning assets was 7.51%, while the
average cost of interest bearing funds was 3.25%, producing a
net interest spread (FTE) of 4.26%. The net interest margin
(FTE) was 4.90% for the first quarter of 1995. In comparison, the
net interest margin (FTE) for the fourth quarter of 1994 was 4.78%.
The average yield on earning assets was 7.20%, while the
average cost of interest bearing funds during the fourth
quarter of 1994 was 3.01%, producing a net spread of
4.18%. A greater increase of 31 basis points in the yield on interest
earning assets,specifically securities, than the increase of 24 basis points
in the cost of interest bearing funds from the fourth quarter
of 1994 to the first quarter of 1995, provided for the increase
in the net interest margin. For the fourth quarter of 1994,
average earning assets were $232,837,050. During the fourth
quarter of 1994, interest bearing deposit accounts were .11%,
federal funds sold were 3.45%, loans were 40.13% and securities
were 56.31% of total average earning assets. Average interest
bearing liabilities were $186,607,896 during the fourth quarter
of 1994. As a percentage of total interest bearing liabilities,
savings and NOW accounts were 28.90%, money market accounts
were 33.10%, and certificates of deposits were 38.00%.
The net interest margin (FTE) for the first quarter of 1994 was
4.17% compared to 4.90% for the current quarter of 1995. The
cost of interest bearing funds during the first quarter of 1994
was 2.61%, while the yield on average earning assets was 6.38%,
producing a net interest spread of 3.77%. The increase in the
average cost of interest bearing funds from the first quarter
of 1994 to the first quarter of 1995, was 64 basis points while
the increase in the yield on interest earning assets was 113
basis points for the respective quarters, which provided for
the increase in the net interest margin at the end of the first
quarter of 1995. Once again, the increase in the yield on
earning assets outpaced the increase in the cost of interest
bearing funds due primarily to the rise in the short end of the
yield curve coinciding with the maturity schedule of the
securities portfolio. For the first quarter of 1994, average
earning assets were $232,638,611. Interest bearing deposit
accounts were non-existent, federal funds sold were 5.73%,
loans were 34.23% and securities were 60.04% of total average
earning assets during the first quarter of 1994. Average
interest bearing liabilities were $196,547,116 during the first
quarter of 1994. As a percentage of total interest bearing
liabilities savings and NOW accounts were 29.09%, money market
accounts were 36.14%, and certificates of deposits were 34.77%.
The table of Average Balance Sheets and Interest Rate
Analysis for the three months ended March 31, 1995, December
31, 1994, and March 31, 1994 on pages 18 and 19, and the
corresponding table of Interest Differentials on page 20,
detail the effect a change in average balance outstanding of
assets and liabilities and the change in interest yield have on
net interest income for the respective periods.
Provision for Loan Losses
Provision for Loan Losses was $150,000 for the first
quarter of 1995, $75,000 for the fourth quarter of 1994, and
$125,000 for the first quarter of 1994.
Net charge-offs (recoveries) were $310,081 for the current
quarter, versus $(14,905) and $623 respectively for the fourth
and first quarters of 1994. As a percentage of average loans,
net charge-offs (recoveries) were .32% in the current quarter,
(.02)% and insignificant in the fourth and first quarters of
1994, respectively. Gross charge-offs as a percentage of
average loans were .38% in the current quarter compared to .03%
and .02% for the fourth and first quarters of 1994,
respectively. Recoveries as a percentage of gross charge-offs
for the current quarter was 15.34% versus 150.23% and 96.06%
respectively for the fourth and first quarters of 1994.
Other Income
Other income including gains and losses from security
transactions for the current quarter was $952,898, an increase
of $283,380 or 42.31% over $669,518 for the prior quarter and
an increase of $73,820 or 8.40% over $879,078 for the first
<PAGE>
quarter of 1994. Exclusive of security transactions and write-
down on securities, other income increased $281,210 or 42.00%
over the fourth quarter of 1994. Service charge on deposit
accounts accounted for the greater portion of other income for
the comparative periods. Comparing the results of other income
excluding security transactions for the current quarter to the
first quarter of 1994, other income increased $70,769. An
increase in service charge on deposit accounts accounted for
the increase in other income between the two comparative
periods.
Gain on purchased assets was $341,769 for the current
quarter, a decrease of $12,377 or 3.49% over the fourth quarter
of 1994 and a decrease of $36,433 or 9.63% when compared to the
first 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.
Service charges on deposit accounts was $465,217 for the
first quarter of 1995, a decrease of $12,921 or 2.70% from the
fourth quarter of 1994, and an increase of $67,747 or 17.91%
when compared to the first quarter of 1994.
Other operating income for the current quarter was
$143,742, compared to $102,525 for the first 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 $2,170 for the current quarter,
compared to $0 for the fourth quarter of 1994 and $881 for the
first quarter of 1994. No gains or losses from security
transactions involving available - for - sale securities were
realized during the current quarter, nor fourth or first quarters of 1994.
Other Expenses
Other expenses were $2,005,394 for the first quarter of
1995 compared to $2,114,093 for the fourth quarter of 1994, and
$1,733,882 for the first quarter of 1994.
Salaries and employee benefits were $981,430, for the
current quarter compared to $1,023,309 and $900,876 for the
fourth and first quarters of 1994, a decrease of $41,819 and an
increase of $80,554, respectively. Net occupancy expense was
$262,990 for the current quarter, compared to $390,673 for the
fourth quarter of 1994 and $240,049 for the first quarter of
1994. Other operating expenses were $875,504 for the current
quarter, and $890,609 and $840,695, for the fourth and first
quarters of 1994, respectively. The bank incurred periodical
maintenance expenses on some of its buildings during the fourth
quarter of 1994 which may not occur on a regular basis.
Net other real estate expense was a benefit of $114,530
for the current quarter. This compares to a benefit of
$190,498 for the fourth quarter of 1994 and a benefit of
$247,738, for the first quarter of 1994. Net other real estate
and repossession expense 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
current quarter, other real estate expenses totaled $439, which
were offset by the income generated from the operations of
other real estate of $8,547, and net gains on the sale of other
real estate and repossessed assets of $106,422. 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
$376,679 compared to $266,408 and $401,247 respectively for the
fourth and first quarters of 1994. Effective tax rates are
24.33%, 22.19% and 30.27%, respectively. The Company's
effective income tax expense as a percentage of pretax income
is different from statutory rates due to tax-exempt interest
<PAGE>
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 $189,993,667 or 83.35% of total average deposits
and 74.77% of total average assets. This compares to average
core deposits of approximately $191,737,667 during the fourth
quarter of 1994, or 84.49% of total average deposits and 76.27%
of total average assets. Average core deposits for the first
quarter of 1994 were approximately $190,404,333 or 80.66% of
total average deposits and 73.50% of total average assets.
Other sources of liquidity are maturities in the investment
portfolio and loan maturities
and repayments. 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 enhanaced its interest rate 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.
<PAGE>
<TABLE>
Interest Rate Sensitivity Table
March 31, 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 $40,949 $46,256 $25,457 $11,490 $0 $124,152
Loans, Net of Unearned Income 10,368 19,175 47,179 18,138 245 95,105
Federal Funds Sold 13,175 0 0 0 0 13,175
Other Assets 261 0 0 0 22,780 23,041
Total Assets $64,753 $65,431 $72,636 $29,628 $23,025 $255,473
Liabilities
NOW and Super NOW Deposits $22,833 $0 $0 $0 $0 $22,833
Insured Money Market Accounts 58,703 0 0 0 0 58,703
Savings Deposits 31,889 0 0 0 430 32,319
Certificates of Deposits over $100,000 4,234 3,427 1,500 0 0 9,161
Other Certificates of Deposits 31,151 23,476 11,166 12 0 65,805
Demand Deposits 0 0 0 0 40,197 40,197
Other Liabilities 0 0 0 0 825 825
Stockholders' Equity 0 0 0 0 25,630 25,630
Total Liabilities and
Stockholders' Equity $125,977 $26,903 $12,666 $12 $67,082 $255,473
Interest Rate Sensitivity Gap ($61,224) $38,528 $59,970 $29,616 ($44,057) $0
Cumulative Interest Rate
Sensitivity Gap ($61,224) ($22,696) $37,274 $66,890 $0
</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 March 31, 1995 were $6,843,324, compared to
$3,790,265 at December 31, 1994, and $4,409,852 at March 31,
1994. The bank had letters of credit of $311,700 issued at
March 31, 1995 compared to $330,300 at December 31, 1994, and
$375,160 at March 31, 1994. Additionally, the Bank has deposit
customers who have credit lines available to them through their
deposit accounts. At March 31, 1995, the available portion of
these credit lines were $502,104. At December 31, 1994, and
March 31, 1994, the available portion of these credit lines
were $527,984 and $589,232, 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 March 31, 1995, the aggregate
credit available was $2,191,281. At December 31, 1994 and
March 31, 1994, the aggregate available credit was $1,949,556
and $1,836,303, 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.
<PAGE>
Securities
Included in the category of Securities of Other US
Government Agencies at March 31, 1995 is $19,600,000 par value
of structured notes, with an amortized cost of $19,614,079 and
a fair value of $18,503,850. The resulting unrealized loss in
the amount $1,110,229 accounts for approximately 72% of the
Bank's total unrealized loss on securities at March 31, 1995.
The structured notes, which are issued by US government
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 $2,917,106 at March 31,
1995 or 2.98% of net loans outstanding. At December 31, 1994,
the allowance for loan losses was $3,077,187 or 3.22% of net
loans outstanding and $2,841,629 or 3.49% of net loans
outstanding at March 31, 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. 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
March 31, 1995, were $244,807, compared to $431,659 at December
31, 1994. At March 31, 1994, nonaccrual loans were $232,822.
Loans past due 90 days and still accruing at March 31, 1995 and
December 31, 1994 were $357,870 and $312,830, respectively. At
March 31, 1994, loans past due 90 days and still accruing were
$216,749. At March 31, 1995, nonaccrual loans were .25% of
gross loans outstanding and 8.39% of the allowance for loan
losses. For December 31, 1994 and March 31, 1994, nonaccrual
loans were .45% and 14.03% of gross loans outstanding and .29%
and 8.19% of the allowance for loan losses, respectively. The
ratios clearly show 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 $46,130 at the close of the current quarter a
decrease $47,396 or 50.58% from the fourth quarter of 1994. At
December 31, 1994 and March 31, 1994, other real estate was
$93,706 and $400,184, respectively.
The Bank also has approximately $1,058,000 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
<PAGE>
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 $1,291,954 as partial payments of the $2,350,000
in original par value. Of the $1,291,954, $821,955 were
recognized as gains on securities available for sale as of
December 31, 1994. The remaining $469,999 was applied against
the book value leaving the bonds with a carrying value of $1.
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 below, the
Company's ratios for the reporting periods exceed regulatory
minimums.
<TABLE>
Capital Adequacy Ratios
(Dollars in Thousands) March 31, December 31, March 31,
1995 1994 1994
<S> <C> <C> <C>
Tier 1 Capital:
Stockholders' Equity $26,645 $25,473 $22,673
Tier 2 Capital:
Allowance for Loan Losses 1,394 1,360 1,197
Total Capital $28,039 $26,833 $23,870
Risk-Weighted Ratios:
Tier 1 Capital 23.88% 23.42% 23.68%
Total Capital 25.13% 24.67% 24.93%
Leverage Ratio 10.49% 10.01% 8.75%
Stockholders' Equity 10.43% 9.96% 8.72%
</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 $6,668,327. 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 March 31, 1995, December 31, 1994, and March 31, 1994
<CAPTION>
First Quarter 1995 Fourth Quarter 1994
AVERAGE INCOME/ YIELD AVERAGE INCOME/ YIELD/
<S> BALANCE EXPENSE RATE BALANCE EXPENSE RATE
Assets <C> <C> <C> <C> <C> <C>
Interest Bearing Deposit Accounts $257,201 $3,500 5.52% $248,524 $2,925 4.67%
Federal Funds Sold and Securities
Purchased under Resale Agreements 9,184,222 129,355 5.71% 8,027,714 104,250 5.15%
Securities:
Taxable 117,858,330 1,698,356 5.84% 119,819,737 1,591,840 5.27%
Non-Taxable* 10,854,096 240,931 9.00% 11,295,400 254,044 8.92%
Loans - Net 96,241,105 2,268,092 9.56% 93,445,675 2,271,468 9.64%
Total Earning Assets $234,394,954 $4,340,234 7.51%$232,837,050 $4,224,528 7.20%
Allowance for Loan Losses (2,895,178) (3,020,170)
Nonearning Assets 22,620,681 22,128,496
Total Assets $254,120,457 $251,945,376
Liabilities and Stockholders' Equity
Savings and NOW Accounts $54,350,365 $322,357 2.41% $53,924,662 $327,244 2.41%
Insured Money Market Accounts 60,812,711 436,445 2.91% 61,780,054 438,156 2.81%
Certificates of Deposit 73,139,864 748,619 4.15% 70,903,180 652,509 3.65%
Total Interest Bearing Liabilities $188,302,940 $1,507,421 3.25%$186,607,896 $1,417,909 3.01%
Demand Deposits 39,642,200 39,683,605
Other Liabilities 708,759 946,563
Stockholders' Equity 25,466,558 24,707,312
Total Liabilities and Stockholders' Equity$254,120,457 $251,945,376
Net Interest Income - Tax Equivalent Basis* 2,832,813 2,806,619
Tax Equivalent Adjustment (81,917) (86,375)
Net Interest Income $2,750,896 $2,720,244
Net Interest Income - Spread* 4.26% 4.18%
Net Interest Income as a % of Total Earning Assets* 4.90% 4.78%
*Tax Equivalent Basis - 34% Rate for the periods dated
</TABLE>
<PAGE>
<TABLE>
AVERAGE BALANCE SHEETS AND INTEREST RATE ANALYSIS
Three-months ended March 31, 1995, December 31, 1994, and March 31, 1994
(continued)
<CAPTION> First Quarter 1994
AVERAGE INCOME/ YIELD/
BALANCE EXPENSE RATE
<S> <C> <C> <C>
Assets
Interest Bearing Deposit Accounts $0 $0 0.00%
Federal Funds Sold and Securities
Purchased under Resale Agreements 13,327,944 99,191 3.02%
Securities:
Taxable 128,116,387 1,351,409 4.28%
Non-Taxable* 11,557,996 260,543 9.14%
Loans - Net 79,636,284 1,947,677 9.92%
Total Earning Assets $232,638,611 $3,658,820 6.38%
Allowance for Loan Losses (2,767,204)
Nonearning Assets 29,183,223
Total Assets $259,054,630
Liabilities and Stockholders' Equity
Savings and NOW Accounts $57,183,283 $327,091 2.32%
Insured Money Market Accounts 71,032,128 440,252 2.51%
Certificates of Deposit 68,331,705 497,350 2.95%
Total Interest Bearing Liabilities $196,547,116 $1,264,693 2.61%
Demand Deposits 39,305,718
Other Liabilities 656,687
Stockholders' Equity 22,345,109
Total Liabilities and Stockholders' Equity$258,854,630
Net Interest Income - Tax Equivalent Basis* 2,394,127
Tax Equivalent Adjustment (88,585)
Net Interest Income $2,305,542
Net Interest Income - Spread* 3.77%
Net Interest Income as a % of Total Earning Assets* 4.17%
*Tax Equivalent Basis - 34% Rate for the periods dated
</TABLE>
<PAGE>
<TABLE>
INTEREST DIFFERENTIALS
Three-months ended March 31, 1995, December 31, 1994, and March 31, 1994
<CAPTION>
First Quarter 1995 First Quarter 1995
vs vs
Fourth Quarter 1994 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 $102 $473 $575 $0 $3,500 $3,500
Federal Funds Sold 15,019 10,086 25,105 (30,839) 61,003 30,164
Securities:
Taxable (26,058) 132,573 106,515 (108,205) 455,152 346,947
Non-Taxable* (9,925) (3,186) (13,113) (15,867) (3,745) (19,612)
Loans 67,951 (71,327) (3,376) 406,107 (85,692) 320,415
Total Interest Income $47,089 $68,617 $115,706 $251,196 $430,218 $681,414
Interest Bearing Liabilities:
Savings and NOW Accounts $2,583 ($7,470) ($4,887) ($16,205) $11,471 ($4,734)
Insured Money Market Accounts (6,861) 5,150 (1,711) (63,339) 59,532 (3,807)
Certificates of Deposit 20,584 75,526 96,110 34,996 216,273 251,269
Total Interest Expense $16,306 $73,206 $89,512 ($44,548) $287,276 $242,728
Increase (Decrease) in
Interest Differential $30,783 ($4,589) $26,194 $295,744 $142,942 $438,686
*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 March 31, 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
May 10, 1995
Date
<TABLE> <S> <C>
<ARTICLE> 9
<MULTIPLIER> 1
<S> <C>
<FISCAL-YEAR-END> DEC-31-1994
<PERIOD-START> JAN-01-1995
<PERIOD-END> MAR-31-1995
<PERIOD-TYPE> 3-MOS
<CASH> 10345127
<INT-BEARING-DEPOSITS> 188821486
<FED-FUNDS-SOLD> 13175000
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 106221267
<INVESTMENTS-CARRYING> 17931254
<INVESTMENTS-MARKET> 18017057
<LOANS> 98013755
<ALLOWANCE> 2917106
<TOTAL-ASSETS> 255472866
<DEPOSITS> 229018066
<SHORT-TERM> 0
<LIABILITIES-OTHER> 499199
<LONG-TERM> 0
<COMMON> 7500000
0
0
<OTHER-SE> 18129811
<TOTAL-LIABILITIES-AND-EQUITY> 255472866
<INTEREST-LOAN> 2268092
<INTEREST-INVEST> 1846071
<INTEREST-OTHER> 140654
<INTEREST-TOTAL> 4258317
<INTEREST-DEPOSIT> 3500
<INTEREST-EXPENSE> 1507421
<INTEREST-INCOME-NET> 2750896
<LOAN-LOSSES> 150000
<SECURITIES-GAINS> 2170
<EXPENSE-OTHER> 2005394
<INCOME-PRETAX> 1548400
<INCOME-PRE-EXTRAORDINARY> 1548400
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1171721
<EPS-PRIMARY> .87
<EPS-DILUTED> .87
<YIELD-ACTUAL> 4.90
<LOANS-NON> 244807
<LOANS-PAST> 216749
<LOANS-TROUBLED> 154766
<LOANS-PROBLEM> 1687880
<ALLOWANCE-OPEN> 3077187
<CHARGE-OFFS> 366249
<RECOVERIES> 56168
<ALLOWANCE-CLOSE> 2917106
<ALLOWANCE-DOMESTIC> 2753337
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 163769
</TABLE>
