FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the quarter ended September 30,1999
Commission file number 2-84047
PEOPLES BANCSHARES OF POINTE COUPEE PARISH, INC.
POINTE COUPEE PARISH, LA. 72-0995027
HIGHWAY 3131, NEW ROADS, LOUISIANA 70760
(225) 638-3713
Common Stock, $2.50 Par Value 1,000,000 shares authorized 309,677
issued and 308,577 outstanding as of September 30,1999
<PAGE>
INDEX
PEOPLES BANCSHARES OF POINTE COUPEE PARISH, INC.
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements (Unaudited)
Unaudited consolidated call report balance sheet
as of September 30,1999.
Unaudited consolidated call report statement of
income as of September 30, 1999.
Unaudited consolidated statement of change in
stockholders' equity for the three months ended
September 30, 1999.
Notes to unaudited consolidated financial
statements as of September 30,1999 and 1998.
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations
PART II. OTHER INFORMATION
Item 1. Legal Proceedings
Item 2. Changes in Securities
Item 3. Defaults upon Senior Securities
Item 4. Submission of Matters to a Vote of Security Holders
SIGNATURES
<PAGE>
INCOME STATEMENT
JANUARY 1, 1999 - September 30,1999
DOLLAR AMOUNTS IN THOUSANDS
- ----------------------------------------------------------------------------
1. INTEREST INCOME
a. INTEREST AND FEE INCOME ON LOANS (1), (2): N/A
(1) TOTAL LOANS (TO BE COMPLETED ONLY BY THOSE BANKS
WITH LESS THAN $25 MILLION IN TOTAL ASSETS)
THE FOLLOWING FOUR ITEMS ARE TO BE COMPLETED ONLY BY THOSE
BANKS WITH $25 MILLION OR MORE IN TOTAL ASSETS (1), (2)
(2) REAL ESTATE LOANS 390
(3) INSTALLMENT LOANS 0
(4) CREDIT CARDS AND RELATED PLANS 0
(5) COMMERCIAL (TIME AND DEMAND) AND ALL OTHER LOANS 1,818
b. INCOME FROM LEASE FINANCING RECEIVABLES 0
c. INTEREST INCOME ON BALANCES DUE FROM DEPOSITORY
INSTITUTIONS (3) 15
d. INTEREST AND DIVIDED INCOME ON SECURITIES
(1) SECURITIES ISSUED BY STATES AND POLITICAL SUBDIVISIONS
IN U.S.:
(a) TAXABLE SECURITIES
(b) TAX-EXEMPT SECURITIES 26
(2) U.S. GOVERNMENT SECURITIES AND OTHER DEBT SECURITIES 171
(3) EQUITY SECURITIES (INCLUDING INVESTMENTS IN MUTUAL FUNDS)16
e. INTEREST INCOME FROM ASSETS HELD IN TRADING ACCOUNTS 0
f. INTEREST INCOME ON FEDERAL FUNDS SOLD (4) AND SECURITIES
PURCHASED UNDER AGREEMENTS TO RESELL 67
g. TOTAL INTEREST INCOME (SUM OF ITEMS 1.a THROUGH 1.f) 2,503
2. INTEREST EXPENSE:
a. INTEREST ON DEPOSITS
(1) TRANSACTION ACCOUNTS (NOW ACCOUNTS, ATS ACCOUNTS AND
TELEPHONE AND PREAUTHORIZED TRANSFER ACCOUNTS) 72
(2) NON TRANSACTION ACCOUNTS
(a) MONEY MARKET DEPOSIT ACCOUNTS (MMDAs) 17
(b) OTHER SAVING DEPOSITS 130
(c) TIME CERTIFICATES OF DEPOSIT OF $100,000 OR MORE 178
(d) ALL OTHER TIME DEPOSITS(1) 397
b. EXPENSE OF FEDERAL FUNDS PURCHASED(2) AND SECURITIES
SOLD UNDER AGREEMENTS TO REPURCHASE 2
c. INTEREST ON DEMAND NOTES ISSUED TO THE U.S. TREASURY AND ON
OTHER BORROWED MONEY 26
d. INTEREST ON MORTGAGE INDEBTEDNESS AND OBLIGATIONS UNDER
CAPITALIZED LEASED 0
e. INTEREST ON SUBORDINATED NOTES AND DEBENTURES 0
f. TOTAL INTEREST EXPENSES (SUM OF ITEMS 2.a THROUGH 2.e) 822
3. NET INTEREST INCOME (ITEM 1.g MINUS 2.f) 1,681
4. PROVISIONS:
a. PROVISION FOR LOAN AND LEASE LOSSES <38>
b. PROVISION FOR ALLOCATED TRANSFER RISK 0
5. NONINTEREST INCOME:
a. SERVICE CHARGES ON DEPOSIT ACCOUNTS 314
b. OTHER NONINTEREST INCOME:
(1) OTHER FEE INCOME 60
(2) ALL OTHER NONINTEREST INCOME 63
c. TOTAL NONINTEREST INCOME (SUM OF ITEMS 5.a AND 5.b) 437
6. a. REALIZED GAINS (LOSSES) ON HELD-TO-MATURITY
SECURITIES 0
b. REALIZED GAINS (LOSSES) ON AVAILABLE-FOR-SALE
SECURITIES 9
7. NONINTEREST EXPENSES:
a. SALARIES AND EMPLOYEE BENEFITS 658
b. EXPENSES OF PREMISES AND FIXED ASSETS (NET OF
RENTAL INCOME) (EXCLUDING SALARIES AND EMPLOYEE BENEFITS
AND MORTGAGE INTEREST) 161
c. OTHER NONINTEREST EXPENSES 353
d. TOTAL NONINTEREST EXPENSE (SUM OF ITEMS 7.s THROUGH
7.c.) 1,172
8. INCOME (LOSS) BEFORE INCOME TAXES AND EXTRAORDINARY
ITEMS AND OTHER ADJUSTMENTS (ITEM 3 PLUS OR MINUS ITEMS
4.a, 4.b, 5.c, 6.a, 6.b, AND 7.d) 993
9. APPLICABLE INCOME TAXES (ON ITEM 8) 299
10. INCOME (LOSS) BEFORE EXTRAORDINARY ITEMS AND OTHER
ADJUSTMENTS (ITEMS 8 MINUS 9) 694
11. EXTRAORDINARY ITEMS AND OTHER ADJUSTMENTS:
a. EXTRAORDINARY ITEMS AND OTHER ADJUSTMENTS, GROSS OF
INCOME TAXES 0
b. APPLICABLE INCOME TAXES (ON ITEM 11.a) 0
c. EXTRAORDINARY ITEMS AND OTHER ADJUSTMENTS, NET OF INCOME
TAXES (ITEM 11.a MINUS 11.b) 0
12. NET INCOME (LOSS) (SUM OF ITEMS 10 AND 11.c) 694
<PAGE>
BALANCE SHEET
ASSETS
1. CASH AND BALANCES DUE FROM DEPOSITORY INSTITUTIONS:
a. NONINTEREST-BEARING BALANCES AND CURRENCY AND COIN
(1),(2) 2,060
b. INTEREST-BEARING BALANCES (3) 394
2. SECURITIES:
a. HELD-TO-MATURITY SECURITIES (FROM SCHEDULE RC-B,
COLUMN A)
b. AVAILABLE-FOR-SALE SECURITIES (FROM SCHEDULE RC-B
COLUMN D) 5,017
3. FEDERAL FUNDS SOLD AND SECURITIES PURCHASED UNDER
AGREEMENTS TO RESELL:
a. FEDERAL FUNDS SOLD (4) 2,050
b. SECURITIES PURCHASED UNDER AGREEMENTS TO RESELL (5) 0
4. LOANS AND LEASE FINANCING RECEIVABLES:
a. LOANS AND LEASES, NET OF UNEARNED INCOME (FROM
SCHEDULE RC-C) 31,160
b. LESS: ALLOWANCE FOR LOAN AND LEASE LOSSES 687
c. LESS: ALLOCATED TRANSFER RISK RESERVE 0
d. LOANS AND LEASES, NET OF UNEARNED INCOME, ALLOWANCE,
AND RESERVE (ITEM 4.a MINUS 4.b AND 4.c) 30,473
5. TRADING ASSETS 0
6. PREMISES AND FIXED ASSETS (INCLUDING CAPITALIZED
LEASES) 637
7. OTHER REAL ESTATE OWNED (FROM SCHEDULE RC-M) 146
8. INVESTMENTS IN UNCONSOLIDATED SUBSIDIARIES AND 0
ASSOCIATED COMPANIES (FROM SCHEDULE RC-M)
9. CUSTOMERS' LIABILITY TO THIS BANK ON ACCEPTANCES
OUTSTANDING 0
10. INTANGIBLE ASSETS (FROM SCHEDULE RC-M) 0
11. OTHER ASSETS (FROM SCHEDULE RC-F) 790
12.a. TOTAL ASSETS (SUM OF ITEMS 1 THROUGH 11) 41,567
b. LOSSES DEFERRED PURSUANT TO 12 U.S.C. 1823(J) 0
c. TOTAL ASSETS AND LOSSES DEFERRED PURSUANT TO 12
U.S.C. 1923(j) (SUM OF ITEMS 12.a AND 12.b) 41,567
LIABILITIES
13. DEPOSITS:
a. IN DOMESTIC OFFICES (SUM OF TOTALS OF COLUMNS A AND C
FROM SCHEDULE RC-E) 35,225
(1) NONINTEREST-BEARING (1) 8,584
(2) INTEREST-BEARING 26,641
b. IN FOREIGN OFFICES, EDGE AND AGREEMENT SUBSIDIARIES,
AND IBF'S
(1) NONINTEREST-BEARING
(2) INTEREST-BEARING
14. FEDERAL FUNDS PURCHASED AND SECURITIES SOLD UNDER AGREEMENTS
TO REPURCHASE:
a. FEDERAL FUNDS PURCHASED (2) 0
b. SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE(3) 0
15.a. DEMAND NOTES ISSUED TO THE U.S. TREASURY 0
b. TRADING LIABILITIES 0
16. OTHER BORROWED MONEY:
a. WITH ORIGINAL MATURITY OF ONE YEAR OR LESS 1,000
b. WITH ORIGINAL MATURITY OF MORE THAN ONE YEAR 0
17. MORTGAGE INDEBTEDNESS AND OBLIGATIONS UNDER CAPITALIZED
LEASES 0
18. BANK'S LIABILITY ON ACCEPTANCES EXECUTED AND OUTSTANDING 0
19. SUBORDINATED NOTES AND DEBENTURES 0
20. OTHER LIABILITIES (FROM SCHEDULE RC-G) 402
21. TOTAL LIABILITIES (SUM OF ITEMS 13 THROUGH 20) 36,627
22. LIMITED-LIFE PREFERRED STOCK AND RELATED SURPLUS 0
EQUITY CAPITAL
23. PERPETUAL PREFERRED STOCK AND RELATED SURPLUS 0
24. COMMON STOCK 774
25. SURPLUS (EXCLUDED ALL SURPLUS AND CAPITAL RESERVES 2,226
26.a. UNDIVIDED PROFITS AND CAPITAL RESERVES 1,974
b. NET UNREALIZED HOLDING GAINS (LOSSES) ON AVAILABLE-
FOR-SALE SECURITIES <34>
27. CUMULATIVE FOREIGN CURRENCY TRANSLATION ADJUSTMENTS
28.a. TOTAL EQUITY CAPITAL (SUM OF ITEMS 23 THROUGH 27) 4,940
b. LOSSES DEFERRED PURSUANT TO 12 U.S.C. 1823 (j) 0
c. TOTAL EQUITY CAPITAL AND LOSSES DEFERRED PURSUANT TO
12 U.S.C. 1823 (j) 0
29. TOTAL LIABILITIES, LIMITED-LIFE PREFERRED STOCK,
EQUITY CAPITAL, AND LOSSES DEFERRED PURSUANT TO 12
U.S.C. (j) (SUM OF ITEMS 21, 22, AND 28.c) 41,567
<PAGE>
PEOPLES BANCSHARES OF POINTE COUPEE PARISH, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
FOR THE THREE MONTHS ENDED SEPTEMBER 30,1999 AND 1998.
1999 1998
COMMON STOCK:
Balance - Beginning and End of Period $774 $774
====== ======
SURPLUS:
Balance - beginning of period $2,226 $1,625
Transfer from retained earnings 0 2,225
Balance - End of Period $2,226 $2,225
====== ======
Unrealized Holding Gain/Loss
Balance - beginning of period $ (27) $ 22
Net Gain/Loss (7) 24
Balance - End of Period (34) 46
====== ======
RETAINED EARNINGS:
Balance - beginning of period $2,480 $1,845
Net Income 694 702
Transfer to surplus 0 0
Dividends declared $1,200 95
Change in Net Unrealized
Holding Gain (Loss) (7) (24)
Balance - End of period $1,967 $2,547
======= =======
The above figures are actual rounded to the nearest thousand.
The accompanying note are an integral part of the financial
statements.
<PAGE>
PEOPLES BANCSHARES OF POINTE COUPEE PARISH, INC.
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
AS OF SEPTEMBER 30,1999 AND 1998.
NOTE I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accounting principles followed by Peoples Bancshares of
Pointe Coupee Parish, Inc. and its wholly owned subsidiary,
Peoples Bank and Trust of Pointe Coupee Parish, Louisiana, 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 changes in financial position
are summarized below.
PRINCIPLES OF CONSOLIDATION: The consolidated financial
statements included accounts of Peoples Bancshares of Pointe
Coupee Parish, Inc. (the Company), and its wholly owned
subsidiary, Peoples Bank and Trust Company of Point Coupee
Parish, Louisiana (the Bank). All material intercompany accounts
and transactions have been eliminated. Certain reclassification
to previously published financial statements have been made to
comply with current reporting requirements.
On December 9, 1983, the Bank was merged into Pointe Coupee
Parish Bank and the surviving bank, Peoples Bank and Trust of
Pointe Coupee Parish, Louisiana, became a wholly owned subsidiary
of Peoples Bancshares of Pointe Coupee Parish, Inc. through a
one-for-one exchange for all of the outstanding common stock of
Peoples Bank and Trust of Pointe Coupee, Louisiana. The
reorganization was accounted for as a pooling-of-interest. There
were no material transactions prior to December 9, 1983 for
Peoples Bancshares of Pointe Coupee Parish, Inc., and therefore
the operations of the Company are those of the Bank and all
previous periods presented.
REPORTING OF INCOME FOR TAX PURPOSES: With the information of
the holding company, Peoples Bancshares of Pointe Coupee Parish,
Inc., the consolidated federal income tax return will be filed
for all companies by utilizing the tax method allowed.
INVESTMENT SECURITIES: Investment securities are stated at cost
adjusted for accretion of discounts and amortization of premiums.
Accretion and amortization are recognized as adjustments to
interest income over the holding period of the related investment
securities. Security gains and losses are recognized at the time
of sale and are determined on an identified security basis.
<PAGE>
PEOPLES BANCSHARES OF POINTE COUPEE PARISH, INC.
NOTES TO AUDITED CONSOLIDATED FINANCIAL STATEMENTS
AS OF SEPTEMBER 30,1999 AND 1998.
NOTE I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
LOANS: Loans are stated at the principal amounts outstanding,
less earned income and reserve for loans 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-the-months digits
method which approximates the interest method. The accrual of
interest on a loan is discontinued when, in the opinion of
management, there is doubt about the ability of the borrower to
pay interest or principal. Subsequent interest on such loans is
recognized as income only when collected. Non-refundable service
charges for the origination of loans are recorded as income in
the period the related loans are made.
RESERVE FOR LOAN LOSSES: The provision for loan losses charged
to operating expenses represents an amount based on past loan
loss experience. Additional amounts are added based on
management's evaluation of the loan portfolio under current
economic conditions. The reserve for loan losses reflects an
amount which, in management's judgement, is adequate to absorb
potential loan losses.
BANK PREMISES AND EQUIPMENT: Bank premisses and equipment are
stated at cost less accumulated deprecation. Depreciation
expense is computed on a straight-line basis over the estimated
useful lives of the related assets. Such lives range from five
to forty years for building and improvements, and from three to
ten years for furniture, fixtures and equipment. Expenditures
for additions, major renewals and betterments are capitalized,
and maintenance and repairs are charged to expenses as incurred.
The cost of assets retired or otherwise disposed of the related
accumulated depreciation are eliminated from the accounts in the
year disposal, and the resulting gain or loss is credited or
charged to operations.
FEDERAL INCOME TAXES: Amounts provided for federal income taxes
are based on earnings reported for financial statement purposes,
adjusted for permanent differences between reported financial and
taxable income. Deferred taxes are provided for timing
differences related to certain income and expense items which are
recognized for financial accounting purposes in one period and
for tax purposes in another period.
The federal income taxes benefit resulting from the investment
tax credit allowed on the purchase of certain assets is included
as a reduction of federal income taxes in the year realized.
<PAGE>
PEOPLES BANCSHARES OF POINTE COUPEE PARISH, INC.
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
AS OF SEPTEMBER 30,1999 AND 1998.
(Stated in whole dollars)
NOTE VI: COMMON STOCK
The Company has 1,000,000 shares of $2.50 par value common stock
authorized with 309,677 shares issued and 308,577 outstanding.
The computation of earnings per share and other per share amounts
of common stock is based on the actual number of common stock
outstanding during each period.
NOTE VII: RETIREMENT PLAN
The Bank has a contributory, trusted, qualified profit sharing
plan for all salaried full-time and part-time employees who meet
certain age and longevity requirements. The Bank's contributions
to the plan are discretionary and is currently matched $.50 to
every dollar contributed by eligible employees. Contributions
are allocated among eligible participants in proportion to their
contributory and the Bank's contributions on their behalf.
NOTE VIII: COMMITMENTS
In the normal course of business, commitments under letters of
credit outstanding were $317,015 at SEPTEMBER 30,1999 AND
$457,015 at September 30,1998.
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
YEAR TO DATE NET INCOME THROUGH OCTOBER 27,1999 WAS
$807,653.71. CONTINUED STRONG EARNINGS ARE THE RESULTS OF A
REDUCTION IN PROBLEM ASSETS, THEREBY DECREASING THE NEED FOR LOAN
LOSS EXPENSES AND THE CONTINUED INTEREST RATE SPREAD OR MARGIN IN
WHICH WE ARE NOW OPERATING.
MANAGEMENT CONTINUES TO PLACE STRONG EMPHASIS ON CREDIT
QUALITY AND LOAN LOSS PROVISIONS.
STEPHEN P. DAVID
STEPHEN P. DAVID
PRESIDENT / CEO
PART II. OTHER INFORMATION
ITEM 1. LEGAL PROCEEDING
No legal proceedings have been instituted against the
Company at this time.
ITEM 2. CHANGES IN SECURITIES
No changes in securities as of this date.
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
No defaults upon securities as of this date.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
No matters have been put to a vote of the security holders.
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.
Peoples Bancshares of Pointe Coupee Parish, Inc.
MARCH 13, 2000 Stephen P. David
Date Stephen P. David
President/C.E.O.
MARCH 13, 2000 Joyce A. York
Date Joyce A. York
Vice President & Cashier
<TABLE> <S> <C>
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<S> <C>
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<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> SEP-30-1999
<CASH> 2060
<INT-BEARING-DEPOSITS> 394
<FED-FUNDS-SOLD> 2050
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 5017
<INVESTMENTS-CARRYING> 0
<INVESTMENTS-MARKET> 0
<LOANS> 31160
<ALLOWANCE> 687
<TOTAL-ASSETS> 41567
<DEPOSITS> 35225
<SHORT-TERM> 0
<LIABILITIES-OTHER> 402
<LONG-TERM> 0
774
0
<COMMON> 774
<OTHER-SE> 4940
<TOTAL-LIABILITIES-AND-EQUITY> 41567
<INTEREST-LOAN> 2208
<INTEREST-INVEST> 213
<INTEREST-OTHER> 16
<INTEREST-TOTAL> 2503
<INTEREST-DEPOSIT> 15
<INTEREST-EXPENSE> 822
<INTEREST-INCOME-NET> 1681
<LOAN-LOSSES> 0
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 1172
<INCOME-PRETAX> 993
<INCOME-PRE-EXTRAORDINARY> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 694
<EPS-BASIC> 2.25
<EPS-DILUTED> 0
<YIELD-ACTUAL> 8.68
<LOANS-NON> 77
<LOANS-PAST> 1909
<LOANS-TROUBLED> 87
<LOANS-PROBLEM> 104
<ALLOWANCE-OPEN> 680
<CHARGE-OFFS> 32
<RECOVERIES> 77
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