<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
/X/ Quarterly report pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
For the quarterly period ended June 30, 1995.
/ / Transition report pursuant to Section 13 or 15(d) of the Exchange Act
of 1934
For the transition period from __________ to ___________
Commission file number 0- 13307
The New Iberia Bancorp, Inc.
----------------------------
(Exact name of registrant as specified in its charter)
Louisiana 72-0969631
----------------------------- --------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
800 South Lewis, New Iberia, Louisiana 70560
----------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (318) 365-6761
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
--- ---
APPLICABLE ONLY TO ISSUERS INVOLVED IN
BANKRUPTCY PROCEEDINGS DURING THE
PRECEDING FIVE YEARS:
Indicate by check mark whether the registrant has filed all documents and
reports required to be filed by Sections 12, 13 or 15(d) of the Securities
Exchange Act of 1934 subsequent to the distribution of securities under a plan
confirmed by a court.
Yes No
--- ---
APPLICABLE ONLY TO CORPORATE ISSUERS:
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date.
2,000,000 shares common stock
<PAGE> 2
PART I FINANCIAL INFORMATION
Item 1 - Financial Statements
(a) Financial Highlights
(b) Balance Sheet
(c) Income Statement
(d) Changes in Shareholder's Equity
(e) Cash Flow
Item 2 - Management's Discussion and Analysis of Financial
Condition and Results of Operations
(a) Liquidity
(b) Capital Resources
(c) Results of Operations
PART II OTHER INFORMATION
Item 1 - Legal Proceedings
Item 2 - Changes in Securities
Item 4 - Submission of Matters to a Vote of Security Holders
Item 6 - Exhibits and Reports on Form 8-K
Exhibit 3(i) First Restated Articles of Incorporation of Bancorp
(filed with the Commission on July 19, 1995 as
Exhibit 3.(i) to Bancorp's Form 8-A/A1 (File No.
0-13307) and incorporated herein by reference).
Exhibit 3(ii) Amended and Restated Bylaws of Bancorp (filed with
the Commission on July 19, 1995 as Exhibit 3.(ii) to
Bancorp's Form 8-A/A1 (File No. 0-13307) and
incorporated herein by reference).
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its own behalf by the
undersigned thereunto duly authorized.
THE NEW IBERIA BANCORP, INC.
----------------------------
DATE: August 9, 1995 BY: /s/ ERNEST FREYOU
------------------- -------------------------------------
Ernest Freyou
President and Chief Executive Officer
DATE: August 9, 1995 BY: /s/ LEONARD J. FREYOU
------------------- -------------------------------------
Leonard J. Freyou
Senior Vice-President and Cashier
<PAGE> 3
10-Q INDEX
<TABLE>
<S> <C> <C>
PART I
FINANCIAL INFORMATION
Item 1 Financial Highlights............................... 1
Consolidated Comparative Balance Sheet............. 2-4
Consolidated Comparative Income Statement.......... 5-6
Consolidated Statement of Changes in
Shareholder's Equity............................... 7
Consolidated Statement of Cash Flow................ 8-9
Item 2 Management's Discussion & Analysis of Financial
Condition and Results of Operations
Overview........................................... 10
Captal Resources................................... 10
Net Interest Income................................ 11
Earning Assets..................................... 11
Investment Securities..............................11-12
Interest-Bearing Liabilities....................... 12
Interest Expense................................... 12
Reserve and Provision for Possible Loan Losses.....12-13
Other Income....................................... 14
Other Expenses..................................... 14
Income Taxes....................................... 14
Nonperforming Assets and Past Due Loans............14-15
Liquidity and Interest Rate Sensitivity............15-16
PART II
OTHER INFORMATION
Item 1 Legal Proceedings..................................17-18
Item 2 Changes in Securities.............................. 19
Item 4 Submission of Matters to Vote of Security Holders.. 19
Item 6 Exhibits and Reports on Form 8-K................... 19
</TABLE>
Exhibit 3(i) First Restated Articles of Incorporation of Bancorp (filed
with the Commission on July 19, 1995 as Exhibit 3.(i) to
Bancorp's Form 8-A/A1 (File No. 0-13307) and incorporated
herein by reference).
Exhibit 3(ii) Amended and Restated Bylaws of Bancorp (filed with the
Commission on July 19, 1995 as Exhibit 3.(ii) to Bancorp's
Form 8-A/A1 (File No. 0-13307) and incorporated herein by
reference).
Exhibit 27 Financial Data Schedule.
<PAGE> 4
ITEM 1 (A) FINANCIAL HIGHLIGHTS
(ALL DOLLAR AMOUNTS IN THOUSANDS)
<TABLE>
<CAPTION>
1995 1994 Percent
---- ---- -------
Change
------
<S> <C> <C> <C> <C>
FOR 6 MONTHS Net Income.................. 1261 1562 (19%)
--- -------------------------------------------------------
ENDED 6/30/95 Cash dividends declared..... 300 150 100%
------- -------------------------------------------------------
Average Common Shares
Outstanding (in thousands) 1,991.8 1,991.8
- --------------------------------------------------------------------------
PER SHARE Net Income.................. .63 .78 (19%)
------------------------------------------------------
FOR 6 MONTHS Cash Dividends Declared..... .15 .075 100%
--- ------------------------------------------------------
ENDED 6/30/95 Shareholder's Equity
--------
(Book Value) 10.97 9.96 10%
------------------------------------------------------
Market Value................ N/A N/A N/A
- --------------------------------------------------------------------------
- --------------------------------------------------------------------------
FOR 3 MONTHS Net Income.................. 655 872 (25%)
--- ------------------------------------------------------
ENDED 3/31/95 Cash Dividends Declared..... 150 150 0%
------- -----------------------------------------------------
Average Common Shares
Outstanding (in thousands).1,991.8 1,991.8 -
- --------------------------------------------------------------------------
PER SHARE Net Income............... .33 .44 (25%)
------------------------------------------------------
FOR 3 MONTHS Cash Dividends Declared.. .075 .075 0%
--- ------------------------------------------------------
ENDED 3/31/95
-------
- --------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
AS OF 6/30/95 12/31/94
- ------------------------------------------------------------------------
<S> <C> <C> <C>
Total Assets...............245,383 233,268 5%
-----------------------------------------------------
Total Earning Assets.......229,350 211,969 8%
-----------------------------------------------------
Total Loans Gross..........129,626 112,781 15%
-----------------------------------------------------
Total Deposits.............220,459 210,594 5%
-----------------------------------------------------
Total Shareholder's Equity. 21,935 20,027 10%
-----------------------------------------------------
Total Trust Assets......... 2,337 2,440 (4%)
-----------------------------------------------------
- ------------------------------------------------------------------------
</TABLE>
1
<PAGE> 5
REPRESENTATION OF MANAGEMENT:
All adjustments have been made which, in the opinion of Management, are
necessary to fairly present the financial results for the interim periods
presented.
Operating results for the six months ended June 30, 1995 are not necessarily
indicative of the results that may be expected for the year ended December 31,
1995.
For all periods, the share amount, per share data and par value throughout the
Financial Statements have been adjusted to give effect to the 40 to 1 stock
split and change in par value as reported in the Form 10-Q filed with the
Commission by the Corporation on May 12, 1995.
2
<PAGE> 6
<TABLE>
<CAPTION>
ITEM I (B)- CONSOLIDATED COMPARATIVE BALANCE SHEET CURRENT QUARTER PREVIOUS YEAR
AS OF 6/30/95 AS OF 12/31/94
ASSETS ----------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
CASH AND DUE FROM BANKS $9,576,702.65 $10,234,599.53
INVESTMENT SECURITIES: (SEE NOTE)
1. HELD TO MATURITY: Fair Value of $59,005,486 at
6/30/95 and $61,882,000 at
12/31/94, respectively
(A) U.S. TREASURY SECURITIES $7,968,131.78 $9,899,023.37
(B) U.S. GOVERNMENT:
AGENCY NOTES $6,470,940.00 $8,493,240.00
MORTGAGE BACKED SECURITIES $19,907,966.26 $21,031,951.65
(C) OBLIGATIONS OF STATES & POLITICAL
SUBDIVISIONS $23,147,354.98 $23,702,082.07
(D) DOMESTIC DEBT SECURITIES $497,355.00 $497,140.00
(E) CORPORATE STOCKS IN OTHER BANKS $0.00 $0.00
TOTAL INVESTMENT HELD TO MATURITY $57,991,748.02 $63,623,437.09
2. AVAILABLE FOR SALE, at Fair value
(A) U.S. TREASURY SECURITIES $12,047,462.50 $15,827,103.28
(B) U.S. GOVERNMENT:
AGENCY NOTES $2,580,700.00 $1,442,800.00
MORTGAGE BACKED SECURITIES $11,768,580.38 $15,322,445.85
(C) OBLIGATIONS OF STATES & POLITICAL $0.00 $0.00
SUBDIVISIONS
(D) DOMESTIC DEBT SECURITIES $2,398,082.51 $3,069,110.00
(E) CORPORATE STOCKS IN OTHER BANKS $150,083.75 $150,083.75
TOTAL INVESTMENT AVAILABLE FOR SALE $28,944,909.14 $35,811,542.88
TOTAL INVESTMENT SECURITIES $86,936,657.16 $99,434,979.97
FEDERAL FUNDS SOLD $13,201,764.52 $3,809,395.02
LOANS HELD FOR SALE $285,300.00 $439,974.00
LOANS: GROSS $129,340,693.99 $112,350,672.11
LESS:
(A) UNEARNED INCOME ON LOANS ($95,364.22) ($9,739.14)
(B) RESERVE FOR POSSIBLE LOAN LOSSES ($3,302,770.50) ($3,114,213.10)
LOANS: NET $126,227,859.27 $109,666,693.87
BANK PREMISES, EQUIPMENT, FURNITURE & FIXTURES $5,507,735.35 $5,695,083.68
REAL ESTATE OWNED OTHER THAN BANK PREMISES $106,815.89 $181,815.89
INTANGIBLE ASSETS $287,636.98 $347,471.96
OTHER ASSETS $3,537,379.64 $3,898,055.11
TOTAL OTHER ASSETS $9,439,567.86 $10,122,426.64
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS $245,382,551.46 $233,268,095.03
================== ==================
</TABLE>
3
<PAGE> 7
<TABLE>
<CAPTION>
ITEM I (B)- CONSOLIDATED COMPARATIVE BALANCE SHEET CURRENT QUARTER PREVIOUS YEAR
(CONTINUED) AS OF 6/30/95 AS OF 12/31/94
--------------------------------------------------------------------
<S> <C> <C> <C> <C>
LIABILITIES AND CAPITAL
- ---------------------------------------------------------------------------------------------------------------------------------
DEPOSITS IN DOMESTIC OFFICES
(A) DEMAND $31,993,282.29 $31,257,072.14
(B) NOW, SUPER NOW & MONEY MARKET ACCOUNTS $61,272,519.96 $60,939,619.91
(C) SAVINGS & CHRISTMAS CLUB $18,284,538.42 $18,204,428.35
(D) TIME CD'S - $100,000 AND OVER $40,030,319.61 $36,709,013.46
(E) TIME CD'S - OTHER $52,903,069.06 $47,358,501.35
(F) IRA CD'S $15,974,866.88 $16,125,525.70
TOTAL DEPOSITS $220,458,596.22 $210,594,160.91
FEDERAL FUNDS PURCHASED AND SECURITIES SOLD $1,724,699.00 $1,603,571.41
OTHER LIABILITIES $1,263,930.79 $1,043,828.01
TOTAL LIABILITIES $223,447,226.01 $213,241,560.33
COMMON STOCK:
(1) SHARES AUTHORIZED 10,000,000
(2) COMMON STOCK, NO PA2,000,000 $9,500,500.00 $9,497,410.00
(3) UNDIVIDED PROFITS $12,706,475.24 $11,716,358.08
(4) TREASURY STOCK- 8,240 AT 12/31/94 $0.00 ($2,060.00)
(5) UNREALIZED GAIN(LOSS) ON AFS INVESTMENTS ($271,649.79) ($1,185,173.38)
NET OF INCOME TAX EFFECT
TOTAL EQUITY CAPITAL $21,935,325.45 $20,026,534.70
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES AND EQUITY CAPITAL $245,382,551.46 $233,268,095.03
================== ==================
</TABLE>
4
<PAGE> 8
ITEM I - (C) CONSOLIDATED COMPARATIVE STATEMENT OF INCOME
<TABLE>
<CAPTION>
QUARTER ENDING QUARTER ENDING YEAR TO DATE YEAR TO DATE
6/30/95 6/30/94 ENDED 6/30/95 ENDED 6/30/94
<S> <C> <C> <C> <C>
INTEREST INCOME:
INTEREST & FEES ON LOANS $2,934,352.63 $2,062,074.16 $5,560,717.97 $4,085,333.95
U.S. TREASURY NOTES $342,882.80 $413,366.77 $724,111.19 $822,197.90
U.S. GOVERNMENT:
AGENCY NOTES $192,538.18 $28,912.50 $376,417.34 $61,475.55
MORTGAGE BACKED SECURITIES $629,433.97 $776,414.14 $1,278,376.67 $1,621,126.86
OBLIGATIONS OF STATE & POLITICAL SUB. $315,064.17 $297,032.39 $620,813.84 $557,422.01
DOMESTIC DEBT SECURITIES $52,568.98 $63,064.11 $113,676.11 $119,633.19
OTHER INTEREST INCOME $112,132.66 $43,403.96 $185,699.15 $96,281.19
- ---------------------------------------------------------------------------------------------------------------------------
TOTAL INTEREST INCOME $4,578,973.39 $3,684,268.03 $8,859,812.27 $7,363,470.65
INTEREST EXPENSE:
INTEREST ON DEPOSITS $1,969,730.65 $1,285,325.43 $3,725,120.49 $2,599,641.50
INTEREST ON SHORT TERM BORROWING $23,820.07 $19,459.15 $49,815.50 $32,259.13
- ---------------------------------------------------------------------------------------------------------------------------
TOTAL INTEREST EXPENSE $1,993,550.72 $1,304,784.58 $3,774,935.99 $2,631,900.63
NET INTEREST INCOME $2,585,422.67 $2,379,483.45 $5,084,876.28 $4,731,570.02
PROVISION FOR LOAN LOSSES $62,790.00 $0.00 $124,890.00 $0.00
NET INTEREST INCOME AFTER PROVISION $2,522,632.67 $2,379,483.45 $4,959,986.28 $4,731,570.02
FOR LOAN LOSSES
- ---------------------------------------------------------------------------------------------------------------------------
COMMISSION & FEES FROM FIDUCIARY ACTIVITIES $2,123.74 $1,030.23 $3,491.80 $1,909.57
INSURANCE COMMISSIONS, FEES & PREMIUMS $26,622.14 $11,892.61 $43,226.00 $31,242.03
FEES ON OTHER CUSTOMER SERVICES $292,678.01 $260,484.02 $570,760.73 $529,593.46
INVESTMENT SECURITIES GAIN OR LOSS ($23,186.30) ($16,262.69) ($23,186.30) ($16,262.69)
ALL OTHER INCOME $221,813.16 $381,568.77 $384,492.83 $575,940.98
- ---------------------------------------------------------------------------------------------------------------------------
TOTAL INCOME BEFORE OVERHEAD COST $3,042,683.42 $3,018,196.39 $5,938,771.34 $5,853,993.37
</TABLE>
5
<PAGE> 9
ITEM I - (C) CONSOLIDATED COMPARATIVE STATEMENT OF INCOME (CONTINUED)
<TABLE>
<CAPTION>
QUARTER ENDING QUARTER ENDING YEAR TO DATE YEAR TO DATE
6/30/95 6/30/94 ENDED 6/30/95 ENDED 6/30/94
<S> <C> <C> <C> <C>
OTHER EXPENSES:
SALARIES $997,707.95 $815,967.97 $1,897,957.15 $1,596,286.07
NET OCCUPANCY EXPENSE OF PREMISES $114,901.77 $107,605.16 $236,077.24 $213,660.40
FURNITURE & EQUIPMENT $167,057.82 $161,351.16 $338,844.28 $319,398.02
OTHER EXPENSES $900,124.31 $702,992.66 $1,737,062.12 $1,520,847.73
TOTAL OTHER EXPENSES $2,179,791.85 $1,787,916.95 $4,209,940.79 $3,650,192.22
NET INCOME OR (LOSS) BEFORE INCOME TAX $862,891.57 $1,230,279.44 $1,728,830.55 $2,203,801.15
INCOME TAX EXPENSE $207,761.67 $357,302.00 $467,206.39 $641,843.00
- --------------------------------------------------------------------------------------------------------------------------
INCOME OR LOSS BEFORE EXTRAORDINARY ITEMS $655,129.90 $872,977.44 $1,261,624.16 $1,561,958.15
=============================== ===============================
EARNINGS PER SHARE DATA $0.33 $0.44 $0.63 $0.78
DIVIDENDS PER SHARES OUTSTANDING $0.075 $0.075 $0.15 $0.075
</TABLE>
6
<PAGE> 10
ITEM I - (D) CONSOLIDATED CHANGES IN STOCKHOLDER'S EQUITY
<TABLE>
<CAPTION>
THREE MONTHS PREVIOUS YEAR
ENDED 6/30/95 ENDED 6/30/94
-----------------------------------
<S> <C> <C>
STATEMENT OF CHANGES IN CAPITAL ACCOUNTS
BALANCE AT BEGINNING OF YEAR $20,026,534.70 $19,076,569.15
NET INCOME $1,261,624.16 $1,561,958.15
SALE OF TREASURY STOCK $33,025.00 $1,950.00
NET CHANGE IN UNREALIZED GAIN/LOSS $913,523.59 ($647,880.22)
ON AVAILABLE FOR SALE SECURITIES
(NET OF TAX EFFECT)
- ------------------------------------------------------------------------------------
TOTAL ADDITIONS $2,208,172.75 $916,027.93
DEDUCTIONS:
CASH DIVIDENDS DECLARED $299,382.00 $149,382.00
- ------------------------------------------------------------------------------------
TOTAL DEDUCTIONS $299,382.00 $149,382.00
BALANCE AT END OF PERIOD $21,935,325.45 $19,843,215.08
===================================
</TABLE>
7
<PAGE> 11
THE NEW IBERIA BANCORP, INC.
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 1995 AND 1994
<TABLE>
<CAPTION>
1995 1994
---------------------------------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
NET INCOME $1,261,624 $1,561,958
ADJUSTMENTS TO RECONCILE NET INCOME TO NET CASH
PROVIDED BY OPERATING ACTIVITIES:
DEPRECIATION & AMORTIZATION 359,265 325,359
DISCOUNT ACCRETION & PREMIUM AMORTIZATION 58,149 594,279
PROVISION FOR LOAN LOSSES 124,890 0
NET GAIN ON SALE OF REAL ESTATE OWNED (5,000) 912
LOSS SALE OR CALL OF INVESTMENT SECURITIES (23,186) (16,263)
INCREASE IN OTHER LIABILITIES 220,103 99,326
DECREASE (INCREASE) IN OTHER ASSETS 360,675 (548,220)
NET CASH PROVIDED BY OPERATING ACTIVITIES 2,356,520 2,017,351
CASH FLOWS FROM INVESTING ACTIVITIES:
PROCEEDS FROM SALE OF INVESTMENT SECURITIES (AFS) 4,880,935 7,896,853
PROCEEDS FROM MATURITIES & CALL OF INVESTMENT SEC.(HTM) 10,618,324 6,888,868
PROCEEDS FROM MATURITIES & CALL OF INVESTMENT SEC.(AFS) 6,345,236 13,368,166
PURCHASE OF INVESTMENT SECURITIES(HTM) (7,072,000) (9,638,956)
PURCHASE OF INVESTMENT SECURITIES(AFS) (977,656) (11,992,050)
NET (INCREASE) DECREASE IN LOANS (17,104,011) (4,929,432)
PURCHASE OF BANK PREMISES & EQUIPMENT (112,081) (297,402)
PROCEEDS FROM SALE OF:
OTHER REAL ESTATE OWNED 80,000 0
NET CASH PROVIDED BY (USED IN)
INVESTMENT ACTIVITIES ($3,341,253) $1,296,047
</TABLE>
8
<PAGE> 12
CONSOLIDATED STATEMENT OF CASH FLOWS
(CONTINUED)
<TABLE>
<CAPTION>
YTD 1995 YTD 1994
---------------------------------
<S> <C> <C>
CASH FLOWS FROM FINANCING ACTIVITIES:
SALE OF TREASURY STOCK 33,025 1,950
NET INCREASE (DECREASE) IN REPURCHASE AGREEMENTS $121,128 $773,579
NET INCREASE (DECREASE) IN DEMAND, NOW &
SAVINGS DEPOSITS $1,149,220 ($2,433,276)
NET INCREASE (DECREASE) IN CERTIFICATES OF DEPOSITS $8,715,215 ($4,150,564)
DIVIDENDS PAID ($299,382) ($283,751)
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES $9,719,206 ($6,092,062)
NET INCREASE (DECREASE) IN CASH & CASH EQUIVALENTS $8,734,473 ($2,778,664)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD $14,043,995 $16,544,049
CASH AND CASH EQUIVALENTS AT END OF PERIOD 22,778,467 13,765,385
SUPPLEMENTAL DISCLOSURE:
INTEREST PAID ON BORROWINGS AND DEPOSITS $3,669,650 $2,619,985
FEDERAL INCOME TAX PAID $525,000 $657,568
</TABLE>
9
<PAGE> 13
Part I
Item 2 - Management's Discussion and Analysis of Financial Condition
and Results of Operations
OVERVIEW
In the second quarter of 1995, The New Iberia Bancorp, Inc. (the
"Corporation") recorded net income of $655,130 ($.33 per share). This compares
to the same period in 1994 when net income was $872,977 ($.44 per share). The
change in net income is explained by the following changes: (i) net interest
income increased by $205,940, mainly due to greater loan demand; (ii) other
income decreased by $159,756 due to a reduction in zero-based income collected
on loans which were previously acquired with no basis; (iii) salary costs have
increased as a result of opening new locations in Lafayette and Abbeville; and
(iv) other expenses increased $197,132, mainly attributable to fees paid for
legal services during the second quarter relating to the proceedings described
in Part II, Item 1 - Legal Proceedings.
On June 30, 1995 total assets of the Corporation were $245,382,551,
which is an increase of $12,114,456 (5.19%) from the $233,268,095 reported for
December 31, 1994 and an increase of $25,449,268 (11.57%) from June 30, 1994.
Gross loans on June 30, 1995 were $129,625,994, a $16,835,348 (14.93%) increase
from the December 31, 1994 balance of $112,790,646 and an increase of
$31,217,276 (31.72%) from the balance on June 30, 1994. Loans held for sale on
June 30, 1995, December 31, 1994, and June 30, 1994 were $285,300, $439,974,
and $81,999, respectively. The increase in loans is attributable to the
continuing activity in mortgage lending, good retail consumer activity, and a
steadily improving commercial loan market throughout 1994 and into 1995. Total
deposits were $220,458,596 on June 30, 1995, a $9,864,435 (4.68%) increase from
the balance of $210,594,161 on December 31, 1994 and an increase of $24,091,832
(12.27%) from the balance on June 30, 1994. The increase in deposits from
December 1994 is primarily attributable to an increase in public funds from
existing fiscal agent agreements and longer-term certificates of deposit. The
addition of longer-term certificates of deposit was used to aid in
asset/liability management given the current loan demand.
CAPITAL RESOURCES
Capital ratios for the quarter ending June 30, 1995:
<TABLE>
<CAPTION>
Regulatory
1995 1994 1993 Minimum
---- ---- ---- ----------
<S> <C> <C> <C> <C>
Primary Capital 10.15% 10.29% 8.85% 5.5%
Leverage 8.83% 9.13% 7.80% 5%*
Risk-based capital
Tier I 16.50% 19.39% 18.18% 6%*
Total 18.00% 20.89% 19.68% 10%*
</TABLE>
*Current levels for a well capitalized institution in accordance with the
Federal Deposit Insurance Corporation Improvement Act of 1991 (FDICIA). The
unrealized loss on Available for Sale securities reflected in the equity
section of the balance sheet was excluded as required by regulatory agencies in
the computation of these ratios.
10
<PAGE> 14
NET INTEREST INCOME - Net interest income is the difference between
interest earned on assets and interest paid for the funds supporting those
assets. As of June 30, 1995, net interest income was $5,084,876, an increase
of $353,306 (7.47%) over the same period in 1994. The increase in net interest
income is the result of an increase in loan activity over the last year.
Interest rates rose substantially during 1994, but loan demand was relatively
unaffected during that period. Activity in mortgage and commercial lending has
continued to increase while retail consumer lending has remained strong
throughout the same period. Interest costs have slowly but steadily increased
throughout 1994 and 1995. This trend should continue as deposits reprice
during the rest of 1995.
EARNING ASSETS - Earning assets on June 30, 1995 were $229,348,827, an
increase of $13,743,273 (6.37%) from the December 31, 1994 balance of
$215,605,554. The change is the result of an increase in loans outstanding of
$16,849,206 and $9,392,390 in federal funds sold, offset by a net decrease of
$12,498,323 in investment securities.
The average yield on earning assets for first half of 1995 was 8.34%.
In 1994, the average yield on earning assets was 8.06%. The yield on loans has
increased to an average of 8.90% from an average of 8.72% in 1994. The yield
on investments has increased to an average of 6.49% from an average of 5.68% in
1994. The yield on investments is up due to overall higher interest rates.
The Corporation has continued to diversify the investment portfolio to maintain
a good yield by investing in municipal bonds where spreads are better than
other investment alternatives, short term treasury notes, and short average
life mortgage backed securities. The average rate on Fed Funds Sold has
increased to an average of 5.84% from an average of 3.39% in 1994. (All yields
are year to date through June of the respective year.)
INVESTMENT SECURITIES - The Corporation's goals with respect to
investment portfolio management is to ensure (i) quality of securities, (ii)
the maintenance of attractive rates of return on the funds invested and (iii)
adequate liquidity to the Corporation. The portfolio consists primarily of
U.S. Treasury Notes, Municipal Bonds, and Mortgage- Backed Securities. U.S.
Treasury Notes and Municipal Bonds maturities are laddered to provide a
constant liquidity source. Mortgage-Backed Securities provide liquidity,
monthly cash flow and higher yields. The mix of the investment portfolio
continues to change, primarily due to prepayments on mortgage-backed
securities. The Corporation has primarily reinvested maturities and pay downs
in 1995 into loans, where demand has been good.
The breakdown of the investment portfolio as of June 30, 1995 is
listed below:
<TABLE>
<CAPTION>
(In Thousands of Dollars)
Held to Maturity Available for Sale
---------------- ------------------
Amortized Fair Amortized Fair
Cost Value Cost Value
--------- ----- --------- -----
<S> <C> <C> <C> <C>
U.S. Treasury Notes $ 7,968 $8,049 $11,991 $12,048
U.S. Government
Agency Notes 6,471 6,506 2,600 2,581
Mortgage-Backed 19,908 20,491 11,843 11,768
Obligation State 23,147 23,466 0 0
& Political
Domestic Debt 497 493 2,451 2,398
Corporate Stock 0 0 150 150
Total $57,991 $59,005 $29,035 $28,945
</TABLE>
11
<PAGE> 15
Gross unrealized gains and losses on "Held to Maturity" securities were as
follows:
<TABLE>
<CAPTION>
(In Thousands of Dollars)
Book Unrealized Unrealized Market
Value Gains Losses Value
----- ---------- ---------- ------
<S> <C> <C> <C> <C>
U. S. Treasury Notes $ 7,968 $ 82 $ (1) $ 8,049
U. S. Agency Notes 6,471 35 0 6,506
Mortgage-Backed Sec. 19,908 621 (38) 20,491
Obligation State 23,147 509 (190) 23,466
& Political
Domestic Debt 497 0 (4) 493
Total $57,991 $1,247 $(233) $59,005
</TABLE>
Under current regulatory capital rules, the unrealized loss as of June
30, 1995 in the "Available for Sale" securities totaling $271,650, net of tax,
is excluded from capital when calculating leverage, primary capital and risk-
based capital ratios.
The Corporation had sales of securities during the second quarter of
1995 which produced proceeds of $8,380,935. These sales were made due to the
need to restructure the investment portfolio to accommodate the increase in
loan demand. Securities sold were used to fund loan activities and to provide
for short term liquidity. Gains on sales of securities totalled $27,561 while
losses incurred totalled $50,747, resulting in a net loss of $23,186. The
Corporation sold securities during the second quarter of 1994 which yielded
proceeds of $7,896,853. Gains on the sale of these securities totalled
$147,400 while losses incurred totalled $163,663, resulting in a net loss of
$16,263. All of the securities sold during the second quarter of 1994 were
classified as available for sale and were sold as a result of changes in market
conditions.
INTEREST-BEARING LIABILITIES - Interest-bearing liabilities on June
30, 1995 were $190,190,013, reflecting an increase of $9,249,353 (5.11%) from
the December 31, 1994 balance of $180,940,660 and an increase of $24,027,735
over the same date in 1994. As noted previously, the increase in this category
is due to an increase in public funds on deposit and longer term certificates
of deposit.
INTEREST EXPENSE - Interest Expense as of June 30, 1995 totaled
$3,774,936, which represents an increase of $1,143,035 (43.43%) from the 1994
amount of $2,631,901. The reason for the increase is the rapid rise in
interest rates due to changes in Federal Reserve policy, which led to higher
interest rates. Market interest rates have stabilized, but interest costs are
expected to continue to rise in 1995 as customers reinvest their money over the
next year in higher yielding deposits. The average rates paid year to date for
all interest-bearing liabilities were 4.06% through June 1995 as compared to
3.10% for the same period in 1994. All yields are year to date through June of
the respective year.
RESERVE AND PROVISION FOR POSSIBLE LOAN LOSSES
An adequate level of the Allowance for Possible Loan Losses is
determined by reviewing the quality of the loan portfolio, actual loan loss
experience and the current and anticipated economic conditions and their effect
on the market served by the Corporation. The Provision for Possible Loan
Losses is the amount charged to earnings in order to maintain an adequate level
of reserves. Other significant factors considered in determining the levels of
the provision and the
12
<PAGE> 16
reserve are the growth or decline in the loan portfolio, the composition of the
portfolio, industry concentrations, differing risks associated with each
category of loans, the current and prospective financial condition of
borrowers, the level of past due and nonperforming loans and the relationship
of the reserve to the total loan portfolio. Management regularly reviews the
loan portfolio in an effort to identify potential losses and to determine that
the level of reserves that adequately reflects the potential loss exposure.
Loans identified as problem credits are reviewed more frequently to determine
potential changes in the reserve.
Since actual losses may vary from current assessments, any necessary
adjustments to the reserve are recorded in the period in which they become
known. The loan review department of the Corporation monitors adherence to
lending policies and procedures as well as asset quality.
The Provision for Possible Loan Losses was $124,890 for the six months
ending June 30, 1995 compared to none for the same period ending the previous
year. The balance in the reserve over the two-year period reflects levels of
charge-offs and management's estimates of collateral values when evaluating
exposure in the loan portfolio. The reserve as a percentage of loans and
leases was 2.55% at quarter end (June 30, 1995) compared to 2.76% at year end
(December 1994). Management projects loan growth to continue throughout the
remainder of the year. This growth is a factor in Management's periodic
determination of the reserve. Management plans to make adjustments to the
reserve based on recoveries received and charge-offs made to ensure that an
adequate loan loss reserve is maintained.
The diversification of the loan portfolio is an important factor in
the assessment of loan quality and loss potential. Although the Corporation
has extended a significant amount of loans to energy services and agricultural
customers due to the prevalence of those industries in the local economy, the
Corporation attempts to lend to a variety of industries to minimize its
exposure to possible losses occurring from concentration of loans in any single
sector. Broadening the Corporation's base of loan activity into the Lafayette,
Louisiana market, along with the steadily improving local economy over the last
few years, has had a positive effect on the performance of the loan portfolio.
During 1993, the U.S. Congress passed the North American Free Trade Agreement
(NAFTA). The Corporation believes that the increase in competition from
Mexican producers as a result of the passage of NAFTA could have a direct
adverse effect on the agricultural sugar and textile industries. Because the
Corporation has customers in these industries, NAFTA may also adversely affect
the Corporation. Also, NAFTA may have an indirect adverse effect on the
Corporation's operating market. Management has considered these factors in
establishing the Corporation's loan loss reserve.
Another factor considered by management when assessing loan quality,
loss potential and the consumer loan portfolio is the opening of new gaming
establishments in the Corporation's marketing area. A recent review of past
due loans does not indicate a significant negative effect as a result of gaming
activities at this time.
Charge-Offs year to date for 1995 were $95,686 compared to $63,817 in
1994. Recoveries year to date for 1995 were $159,354 compared to $65,546 in
1994. The small levels in charge-offs are attributable to Management's
continued efforts to identify and work out problem loans.
Year to date Loan Recoveries compared to prior year charge-offs was
91.87% and 64.71% for June 1995 and June 1994, respectively.
13
<PAGE> 17
OTHER INCOME
For the second quarter of 1995, Other Income was $543,237, a decrease
of $110,709 (20.38%) over the $653,946 earned for the same period in 1994. The
reduction is primarily due to the recognition of cash recoveries on zero based
loans which were previously acquired with no basis. The earnings in 1995
reflect more normal levels than those of the same period in 1994. Year to date
other income as of June 30, 1995 totaled $1,001,971, a decrease of $134,805
(11.86%) over the same period in 1994.
OTHER EXPENSES
Total Other Expenses for the second quarter of 1995 was $2,179,792
compared to $1,787,917 for the same period in 1994. This reflects an increase
of $391,875. Salary and benefits cost have increased from last year because of
an increase in staff due to expansion into the Lafayette market. Legal and
professional fees have also increased due to litigation (See Part II, Item 1 -
Legal Proceedings).
INCOME TAXES
The effective tax rate for 1995 is approximately 27% compared to 29%
for the same period in 1994. The Corporation has invested more in
tax-advantaged municipal securities in recent years. This provided a better
overall yield compared to other investment securities options.
NONPERFORMING ASSETS AND PAST DUE LOANS
Crucial to earnings performance is the monitoring of asset quality,
chiefly in the evaluation of credit risk, and the minimization of the
Corporation's exposure to losses. Management views these two critical
functions as essential to sound banking practice. Therefore, management
regularly obtains appraisals for the collateral supporting nonperforming assets
and specifically establishes reserves for them based on the current market
value of the collateral if necessary. Management utilizes historical loss
trends to establish general reserves on nonperforming loans.
Nonperforming assets are those loans carried on a non-accrual basis,
those classified as troubled debt restructuring, real estate acquired through
foreclosure and repossessed movable property. The following schedule reflects
the balance of each category:
<TABLE>
<CAPTION>
(In Thousands of Dollars)
June 30, 1995 December 31, 1994
------------- -----------------
<S> <C> <C>
Non-accrual Loans $ 89 $ 97
Troubled Debt Restructuring 582 606
Other Real Estate Owned 106 182
Repossessed Movable Prop. 24 6
Total $802 $891
</TABLE>
RISK ELEMENT INFORMATION
<TABLE>
<CAPTION>
June 30, 1995 December 31, 1994
------------- -----------------
<S> <C> <C>
Past due loans 90 days $454 $168
and still accruing
</TABLE>
14
<PAGE> 18
<TABLE>
<CAPTION>
June 30, 1995 June 30, 1994
------------- --------------
<S> <C> <C>
Amount of income on non-accrual $ 3 $ 4
loans that would have been
in income if still accruing
Interest income on restructured $ 39 $ 14
loans included in net income
</TABLE>
Typically, the Corporation's restructured loans are based on the
ability to provide principal and interest repayment instead of providing a rate
less than the market. As a result, any rate adjustment would have resulted in
an immaterial change in earnings during the quarter.
Management is not aware of any loans classified for regulatory
purposes as loss, doubtful, substandard, or special mention and excluded from
the non-accrual, past due 90 days and still accruing, or restructured loans
which: (1) represent or result from trends or uncertainties that will
materially impact future operating results, liquidity, or capital resources, or
(2) represent material credits about which Management is aware of any
information which causes doubts as to the ability of such borrowers to comply
with the loan repayment terms.
On June 30, 1995, impaired loans totaled $88,923. Of the total
impaired loans, $76,572 required a total reserve of $62,572. There was no
reserve for impairment on the remaining $12,351 of impaired loans. During the
six month period ended June 30, 1995, impaired loans averaged $90,514. All
impaired loans are on nonaccrual status and therefore no interest income was
recognized on impaired loans.
NON-ACCRUAL OF INTEREST ON LOANS
It is the policy of The Corporation to discontinue the accrual of
interest on loans when principal or interest is in default for ninety days or
more, unless, in the best judgement of the Officer Loan Committee, the loan is
well secured and is in the process of collection. Interest previously accrued
is reversed and the accrual of interest is discontinued.
LIQUIDITY AND INTEREST RATE SENSITIVITY
Built into the Corporation's financial structure is the goal of
maintenance of adequate liquidity;i.e., the ability to meet customers'
requirements on a timely basis. The Corporation has in place an
Asset/Liability computer software program to aid it in maintaining a reasonable
balance between interest earning assets and interest bearing liabilities. The
information is updated and analyzed by management on a monthly basis in order
to allow management to diversify investments as needed to keep a proper balance
of maturities. Management also regularly evaluates and manages interest rate
sensitivity of assets and liabilities. This is critical to protect net income
against wide fluctuations in interest rates and to maintain consistent growth
of net interest income.
The Corporation's liquidity ratio on June 30, 1995 was 40.96% with a
dependency ratio of 5.92%; the liquidity ratio on December 31, 1994 was 45.64%
with a dependency ratio of 9.50%. Management believes that liquidity is
enhanced by its ability to manage the interest rate sensitivity of assets and
liabilities. The dependency ratio has decreased from December 1994 due to an
increase in short term federal funds. Management actively monitors and
controls the relationship between interest sensitive assets and liabilities by
means of an interest rate simulation model. The off balance sheet commitments,
if funded, would have a limited impact on the liquidity of the Corporation,
primarily due to the maturity structure of the investment portfolio.
15
<PAGE> 19
<TABLE>
<CAPTION>
CUMULATIVE MATURITY/RATE SENSITIVITY (All Dollar Amounts in Thousands)
- -------------------------------------------------------------------------------------------------------------------
EARNING ASSETS
1-30 1-60 1-90 1-365 YEAR & OVER TOTAL
<S> <C> <C> <C> <C> <C> <C>
LOANS* 17,474 20,197 24,359 49,356 80,005 129,361
SHORT TERM INVESTMENTS 13,202 13,202 13,202 13,202 0 13,202
INVESTMENTS*** 1,274 2,780 3,774 22,176 64,611 86,787
TOTAL EARNING ASSETS 31,950 36,179 41,335 84,734 144,616 229,350
FUNDING SOURCES
PUBLIC FUNDS DDA 13,321 13,321 13,321 13,321 0 13,321
NOW ACCOUNTS** 0 0 0 0 26,558 26,558
MONEY MARKET (IMFA) 17,795 17,795 17,795 17,795 0 17,795
CERT. OF DEPOSIT -100M 6,186 8,330 12,973 33,998 6,032 40,030
OTHER TIME DEPOSITS 7,209 11,950 16,583 45,906 26,571 72,477
SAVINGS** 0 0 0 0 18,285 18,285
REPURCHASE AGREEMENTS 1,724 1,724 1,724 1,724 0 1,724
TOTAL FUNDING 46,235 53,120 62,396 112,744 77,446 190,190
CUMULATIVE MATURITY/ (14,285) (16,941) (21,061) (28,010) 67,170 39,160
RATE SENSITIVITY (GAP)
AS A % OF EARNING ASSETS -6.23% -7.39% -9.18% -12.21%
AS A % OF TOTAL ASSETS -5.82% -6.90% -8.58% -11.41%
</TABLE>
* LOAN FIGURES REPRESENT RATE SENSITIVITY ONLY, WHILE THE BALANCE SHEET
REPRESENTS TOTAL GROSS LOANS INCLUDING NON-ACCRUALS AND OVERDRAFTS
** HISTORICALLY, RATES ON THESE TYPES OF ACCOUNTS HAVE CHANGED LITTLE AS
COMPARED TO OTHER TYPES OF DEPOSITS, THEREFORE, THESE ACCOUNTS ARE NOT
CONSIDERED RATE SENSITIVE.
*** $150,084 - FIRST NATIONAL BANKERS BANK AND FNMA STOCK NOT RATE SENSITIVE
AND IS NOT INCLUDED IN THE ONE YEAR AND OVER.
THE AMOUNT OF PAYDOWNS RECEIVED ON A MONTHLY BASIS ON MORTGAGE BACKED
SECURITIES IS NOT REFLECTED IN THIS SCHEDULE. PAY DOWNS AVERAGED ABOUT
$250,000 A MONTH OVER THE FIRST HALF OF 1995, AND WOULD NOT HAVE CREATED A
SIGNIFICANT DIFFERENCE IN THE PERCENTAGES ABOVE.
THE GAP PERCENTAGES NOTED ABOVE ARE A REFLECTION OF A NEGATIVE POSITION.
THIS MEASUREMENT SIMPLE SHOWS AT WHAT REPRICING INTERVAL ASSETS AND
LIABILITIES WILL REPRICE. IT DOES NOT TAKE INTO ACCOUNT AT WHAT LEVEL OF
RATE CHANGE THE ASSET OR LIABILITY WILL REPRICE. IN GENERAL TERMS, IF
RATES FALL, NET INTEREST INCOME SHOULD INCREASE AND IF RATES RISE, NET
INTEREST INCOME SHOULD DECREASE. IN LOOKING AT THE ONE YEAR HORIZON, AND
GIVEN THAT IN GENERAL, INTEREST RATES SHOULD RISE SLIGHTLY IN THE FUTURE,
THE COMPANY WILL NEED TO ADJUST ITS BALANCE SHEET TO A MORE POSITIVE
POSITION. THIS CAN BE ACCOMPLISHED IN SEVERAL WAYS, BUT WHAT WILL LIKELY
OCCUR IS A SHORTENING OF MATURITIES ON EARNING ASSETS. GIVEN THE ADDED
FLEXIBILITY RELATED TO SECURITIES CLASSIFIED AS "AVAILABLE FOR SALE" WITH
THE IMPLEMENTATION OF FASB 115, THE COMPANY SHOULD BE ABLE TO MAKE SOME
ADJUSTMENTS THROUGH THE INVESTMENT PORTFOLIO WHILE NOT AFFECTING THE
PERFORMANCE OF ITS LOAN PORTFOLIO. ALSO, THE LENGTHENING OF MATURITIES OF
DEPOSITS COULD OCCUR WITH FAVORABLE LONGER TERM INTEREST RATES FOR THE
COMPANY'S CUSTOMERS. ALL OF THE ABOVE POSSIBILITIES ARE CONTINGENT ON A
THOROUGH REVIEW USING THE COMPANY'S ASSET/LIABILITY MODEL.
16
<PAGE> 20
PART II OTHER INFORMATION
ITEM 1 - LEGAL PROCEEDINGS:
PENDING LITIGATION IN WHICH THE CORPORATION IS INVOLVED
(1) SAMMY BROUSSARD INTERNATIONAL, INC. VS. CITY BANK, N.A., TEXAS
INDEPENDENT BANK, THE NEW IBERIA BANK, & VISA U.S.A., INC., 16TH Judicial
District Court, Suite Docket No. 75706-A, filed on June 30, 1992, in the amount
of $4,300.00.
CURRENT STATUS: Sammy Broussard International, Inc., instituted legal
proceedings against The New Iberia Bank under the Merchant Credit Card Contract
which the plaintiff had with the Bank. Apparently, a VISA credit card was
fraudulently used to purchase some equipment from Sammy Broussard
International, Inc., and the latter is complaining about the purchase.
Therefore, suit was instituted against The New Iberia Bank, Texas Independent
Bank, City Bank, N.A., and Visa, U.S.A., Inc. Initially, this suit is for
restoration of $4,300.00, but it is the understanding of legal counsel that the
claim will be closer to $30,000.00 eventually. An answer was filed on behalf
of The New Iberia Bank, and no other action has been taken.
Recovery Prospect: Recovery from The New Iberia Bank is extremely remote.
(2) State Court Litigation
On October 7, 1994, the Corporation filed a Petition for Declaratory
Relief in the Civil District Court for the 16th Judicial District, Iberia
Parish, State of Louisiana, (the "state court proceeding"). Named as a
defendant in this suit was Jules A. Schwing ("Schwing"),individually and in his
capacity as the executor of the estates of Jules B. Schwing and Marie Louise
Landry Schwing. (Schwing has since been replaced as executor of his parents'
succession.)
The Petition for Declaratory Relief was filed in response to a request
by Schwing that the Corporation call a special meeting of its shareholders to
consider and vote upon various issues (the "shareholder proposals"). Section
2.3 of the Corporation's Bylaws provided that such a meeting could be called
only upon the request of a shareholder owning, in the aggregate, two-thirds of
the Corporation's issued and outstanding shares, which number of shares was not
owned by Schwing. Because Schwing asserted that Section 2.3 of the
Corporation's Bylaws was invalid, the Corporation sought a declaratory judgment
that Section 2.3 of the Corporation's Bylaws was valid and enforceable.
On November 8, 1994, the Corporation filed its First Amended and
Restated Petition for Declaratory Relief (the "First Amended Petition") in the
state court proceeding. In the First Amended Petition, the Corporation sought
a declaratory judgment that the shareholder proposals were inappropriate for
shareholder consideration under Louisiana Law. After a hearing on December 19,
1994, the court ruled that Section 2.3 of the Corporation's Bylaws was invalid.
On December 28, 1995, Schwing presented to the Corporation written consents
purporting to adopt the shareholder proposals. As Schwing had already
solicited written consents with respect to his proposals, he did not resubmit
his request for a special shareholders meeting.
On January 3, 1995, the Corporation filed a Second Amended and
Restated Petition for Declaratory and Injunctive Relief (the "Second Amended
Petition") in the state court proceeding. The Second Amended Petition added
new claims relating to the validity and authority of the shareholders committee
allegedly empowered pursuant to the shareholder proposals and sought injunctive
relief in relation to those claims. On that date, the court granted the a
temporary restraining order enjoining the shareholders committee from
conducting any
17
<PAGE> 21
activity until a preliminary injunction hearing could be held.
The preliminary injunction hearing was held on Monday, January 9,
1995. At that hearing, the Corporation's request for an order restraining the
activities of Schwing and the shareholders committee during the pendency of the
proceedings was orally granted in part and denied in part. A written
Preliminary Injunction Order memorializing (with some modifications) the
court's oral ruling was entered on March 29, 1995. On April 12, 1995, the
Corporation filed a Petition for Devolutive Appeal from the March 29, 1995
Preliminary Injunction Order. On that day, the Court granted the appeal upon
the posting of a bond and the Corporation posted the necessary bond. In
connection with its appeal, the Corporation sought from the Louisiana Third
Circuit Court of Appeal a request for stay pending the appeal.
Also on March 29, 1995, a hearing was held in the state court
proceeding on cross Motions for Summary Judgment filed by the Corporation and
Schwing relating to the validity and propriety of the shareholder proposals.
On that date, the court orally granted Schwing's Motion for Summary Judgment
and denied the Corporation's Motion for Summary Judgment. A written judgment
to that effect and making the March 29, 1995 Preliminary Injunction Order
permanent was signed on May 22, 1995 (the "Judgment").
On May 24, 1995, the Corporation filed a Petition for Devolutive
Appeal from the Judgment. Also on May 24, 1995, the Corporation requested that
the motion it had previously filed with the appellate court for a stay pending
appeal be reformed to reflect that it related to the appeal filed by the
Corporation on that date instead. As of July 27, 1995, a ruling had not been
rendered in connection with the stay request.
On or about June 29, 1995, Schwing filed in the state court proceeding
a Rule for Writ of Distringas to compel the Corporation to provide certain
documents to Schwing. This filing requests a writ distraining the property of
the Corporation and requesting an order adjudging the Corporation in contempt
and a judgment for damages in an unspecified amount. The Corporation intends
to contest this filing vigorously. A hearing on this matter has been scheduled
for August 24, 1995.
(3) Federal Court Litigation
On January 6, 1995, Schwing filed a Complaint for Injunctive Relief in
the United States District Court for the Western District of Louisiana. The
Complaint sought to enjoin, among other things, the enforcement of various
amendments to the Corporation's Bylaws which were adopted by the board of
directors at a meeting on January 3, 1995.
On January 9, 1995, the Court refused to grant a temporary restraining
order in connection with Schwing's Complaint for Injunctive Relief. A status
conference on this matter was held on January 18, 1995, at which time Schwing's
counsel reurged his request for a temporary restraining order or a preliminary
injunction. At the status conference and at a hearing held February 13, 1995,
the Court refused to grant a temporary restraining order or schedule a
preliminary injunction hearing, and dismissed Schwing's Complaint for
Injunctive Relief. Schwing filed a Notice of Appeal of that dismissal. On or
about March 29, 1995, Schwing filed a Motion for Injunction During Pendency of
Appeal in the United States District Court for the Western District of
Louisiana, which was denied by the Court pursuant to a Minute Entry dated April
6, 1995. Schwing filed a brief in support of this appeal on July 17, 1995.
The Corporation's brief in opposition must be filed on or before August 18,
1995.
18
<PAGE> 22
ITEM 2 - CHANGES IN SECURITIES.
On April 19, 1995, a 40-for-1 stock split and an elimination of the
par value of the common stock of the Corporation was effectuated. Detailed
information concerning the stock split and the elimination of par value was
reported in the Corporation's Form 10-Q for the first quarter of 1995, which
was filed with the Commission on May 12, 1995.
ITEM 4 - SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
On April 17, 1995, the Corporation held its annual meeting of
shareholders, at which the shareholders voted on several proposals and elected
directors. The results of the annual meeting were reported by the Corporation
in its Form 10-Q for the first quarter of 1995, which was filed with the
Commission on May 12, 1995.
ITEM 6 - EXHIBITS AND REPORTS ON FORM 8-K
The Company filed a form 8-K on April 28, 1995 with the Commission.
The Form 8-K reported a change in the executor of the Succession of Jules B.
Schwing and the Succession of Marie Louise Landry Schwing, which collectively
own 30.37% of the common stock of the Corporation. The Form 8-K also reported
a change in the manner in which the stock owned by the aforementioned
successions is voted. No financial statements were filed with the Form 8-K.
EXHIBITS
3 (i) First Restated Articles of Incorporation of Bancorp (filed
with the Commission on July 19, 1995 as Exhibit 3(i) to
Bancorp's Form 8-A/A1 (File No. 0-13307) and incorporated
herein by reference).
3 (ii) Amended and Restated Bylaws of Bancorp (filed with the
Commission on July 19, 1995 as Exhibit 3(ii) to Bancorp's Form
8-A/A1 (File No. 0-13307) and incorporated herein by
reference).
27 Financial Data Schedule.
19
<PAGE> 23
INDEX TO EXHIBITS
<TABLE>
<CAPTION>
EXHIBIT
NUMBER DESCRIPTION
- ------- -----------
<S> <C>
27 Financial Data Schedule.
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 9
<CIK> 0000731940
<NAME> THE NEW IBERIA BANCORP, INC.
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> APR-01-1995
<PERIOD-END> JUN-30-1995
<CASH> 9,576,703
<INT-BEARING-DEPOSITS> 188,465,314
<FED-FUNDS-SOLD> 13,201,765
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 28,944,909
<INVESTMENTS-CARRYING> 57,991,748
<INVESTMENTS-MARKET> 59,005,486
<LOANS> 129,625,994
<ALLOWANCE> 3,302,770
<TOTAL-ASSETS> 245,382,551
<DEPOSITS> 220,458,596
<SHORT-TERM> 1,724,699
<LIABILITIES-OTHER> 1,263,931
<LONG-TERM> 0
<COMMON> 9,500,500
0
0
<OTHER-SE> 12,434,825
<TOTAL-LIABILITIES-AND-EQUITY> 245,382,551
<INTEREST-LOAN> 2,934,353
<INTEREST-INVEST> 1,532,487
<INTEREST-OTHER> 112,133
<INTEREST-TOTAL> 4,578,974
<INTEREST-DEPOSIT> 1,969,731
<INTEREST-EXPENSE> 1,993,551
<INTEREST-INCOME-NET> 2,585,423
<LOAN-LOSSES> 62,790
<SECURITIES-GAINS> (23,186)
<EXPENSE-OTHER> 2,179,792
<INCOME-PRETAX> 862,892
<INCOME-PRE-EXTRAORDINARY> 862,892
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 655,130
<EPS-PRIMARY> .33
<EPS-DILUTED> .33
<YIELD-ACTUAL> 4.32
<LOANS-NON> 88,923
<LOANS-PAST> 454,372
<LOANS-TROUBLED> 581,966
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 3,252,241
<CHARGE-OFFS> 43,852
<RECOVERIES> 31,591
<ALLOWANCE-CLOSE> 3,302,770
<ALLOWANCE-DOMESTIC> 3,302,770
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
