UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 10-Q
Quarterly Report Pursuant to Section 13 or 15 (d) of the
Securities Exchange Act of 1934
For the quarterly period ended March 31, 1995
Commission file Number 2-89561
Teche Bancshares, Inc.
Louisiana 72-1008552
(State or other jurisdiction of (I.R.S Employer
incorporation or organization) Identification No.)
606 South Main Street, St. Martinville, Louisiana 70582
(Address of principal executive offices 70582
Registrant's telephone number, including area code:
(318) 394-9726
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 ( )
Indicated the number of shares outstanding of each of the
issuer's classes of common stock, as of the latest practical date.
Common Stock, $10 Par Value - 27,900 shares as of March 31,
1995.
TECHE BANCSHARES, INC. AND SUBSIDIARY
St. Martinville, Louisiana
CONSOLIDATED BALANCE SHEETS
March 31, 1995 and December 31, 1994
(Dollars in Thousands)
March 31,
1995 December 31,
(Unaudited) 1994
ASSETS
Cash and due from banks $1,192 $3,019
Interest-bearing deposits in banks 594 882
Securities Available for Sale at mkt value 10,930 10,900
Securities Held To Maturity (Market Value
of $2,809 and $4,139, respectively) 2,848 4,215
Other securities at cost 251 254
Federal funds sold 2,750 0
Loans, net of allowance for loan losses
of $179 and $180, respectively) 10,634 10,968
Bank premises, furniture, and equipment 674 668
Accrued interest receivable 249 252
Other real estate owned 358 411
Deferred tax asset 58 76
Other assets 171 171
------------------------
Total assets $30,709 $31,816
========================
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Deposits -
Non-interest demand 4,433 $4,379
Interest bearing -
NOW and MMDA accounts 4,925 8,006
Savings 3,348 3,453
Time, $100 and over, 5,691 4,322
Other time 9,623 9,005
------------------------
Total deposits 28,020 29,165
Accrued interest payable 101 78
Notes payable - stockholders 292 292
Other liabilities and accrued expenses 130 316
------------------------
Total liabilities 28,543 29,851
Stockholders' equity:
Common stock ($10 par value, 100,000
shares authorized, 28,125 shares
issued and outstanding) 281 281
Surplus 1,143 1,143
Retained earnings 876 808
------------------------
2,300 2,232
Less: 225 shares of treasury stock (21) (21)
Allowance for unrealized
loss on mkt securities 0 (4)
Market Value Allowance on
AFS Bonds (113) (242)
------------------------
Total stockholders' equity 2,166 1,965
------------------------
Total liabilities and stockholders' equity $30,709 $31,816
========================
The accompanying notes are an integral part of this statement.
TECHE BANCSHARES, INC. AND SUBSIDIARY
St. Martinville, Louisiana
CONSOLIDATED STATEMENTS OF INCOME
Three Months Ended March 31, 1995 and 1994;
(Dollars in Thousands except Earnings per Share)
Three Months Ended
March 31, March 31,
1995 1994
Interest income:
Interest and fees on loans $281 $248
Interest on investment securities -
U.S. government securities 218 149
State and political subdivisions 1 1
Interest on interest-bearing deposits
in banks 14 17
Dividends on equity securities 0 1
Interest on federal funds sold 20 17
------------------------
Total interest income 534 433
Interest expense:
Interest on deposits $206 $147
Stockholder loans 4 5
------------------------
Total interest expense 210 152
------------------------
Net interest income 324 281
Other income:
Service charges on deposit accounts 53 49
Gain on sale of Other Real Estate 4 0
Other income and charges 14 14
------------------------
Total other income 71 63
Other expenses:
Salaries and employee benefits 129 109
Occupancy expense 51 41
Loss on sale of other real estate 4
Other operating expenses 107 99
------------------------
Total other expenses 291 249
------------------------
Income before income taxes 104 95
Income taxes 36 22
------------------------
Net income $68 $73
Earnings per share $2.42 $2.61
The accompanying notes are an integral part of this statement.
<TABLE>
<CAPTION>
TECHE BANCSHARES, INC. AND SUBSIDIARY
St. Martinville, Louisiana
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
(UNAUDITED)
For the Three Months Ended March 31, 1995 and 1994
Allowance for
Unrealized
Loss on Unrealized
Common Stock Marketable Gain (Loss)
Stated Retained Treasury Equity AFS
Value Surplus Earnings Shares Securities Securities Total
<S> <C> <C> <C> <C> <C> <C> <C>
Balances, January 1, 1995 $281 $1,143 $808 ($21) ($4) (242) $1,965
Net income for the three months 68 $68
Change in Unrealized Gain (loss) on AFS 129 $129
Realized loss on sale of mkt securities 4 $4
------- ------- ------- ------- ------- ------- -------
Balances, March 31, 1995 $281 $1,143 $876 ($21) 0 ($113) $2,166
======= ======= ======= ======= ======= ======= =======
Balances, January 1, 1994 $281 $1,144 $597 ($21) ($4) $0 $1,997
Net income for the three months 73 $73
Unrealized Gain (loss) on AFS 72 $72
------- ------- ------- ------- ------- ------- -------
Balances, March 31, 1994 $281 $1,144 $597 $52 ($4) $72 $2,142
======= ======= ======= ======= ======= ======= =======
<FN>
The accompanying notes are an integral part of this statement.
</TABLE>
TECHE BANCSHARES, INC. AND SUBSIDIARY
St. Martinville, Louisiana
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
For the Three Months Ended March 31, 1995 and 1994
March 31, March 31,
1995 1994
Cash flows from operating activities:
Net income $68 $73
Adjustments to reconcile net income
to net cash provided by
operating activities -
Depreciation of bank premises 20 18
(Gain) Loss on Other real estate (4) (3)
(Gain) Loss on sale of securities 4 0
(Inc)dec accrued int recievable 3 (42)
(Inc) dec deferred tax asset 18 15
(Inc) dec other assets 0 (16)
Inc(dec) accrued interest payable 23 16
Inc(dec) other liabilities (186) (17)
Net cash provided by operating ------------------------
activities (54) 44
Cash flows from investing activities:
Dec interest-bearing deposits in banks 288 0
Dec(inc) in federal funds (2,750) (750)
Dec(inc) in investment securities 1,466 (234)
Net dec (inc) in loans 334 12
Recoveries on loan losses (4)
Capital expenditures premises & equip (26) (13)
Proceeds from sale of securities 2 0
Proceeds from sale of other real estate 57 30
------------------------
Net cash used in investing activities (629) (959)
Cash flows from financing activities:
Net increase (decrease) in -
Demand deposits 55 (270)
NOW and MMDA (3,081) (2,747)
Savings deposits (105) 84
Time deposits $100,000 and over 1,369 1,960
Other time deposits 618 39
------------------------
Net cash provided by financing activities (1,144) (934)
Net increase in cash and cash equivalents (1,827) (1,849)
Cash and cash equivalents, beginning 3,019 3,288
Cash and cash equivalents, end of period $1,192 $1,439
Cash paid during the period:
Interest $187 $136
Income Taxes $14 $14
The accompanying notes are an integral part of this statement.
TECHE BANCSHARES, INC.
NOTES TO FINANCIAL STATEMENTS
March 31, 1995
The information furnished reflects all normal, recurring
adjustments which are, in the opinion of management, necessary for
a fair statement of Teche Bancshares, Inc. and its subsidiary for
the three (3) months ended March 31, 1995. Results for the interim
period presented are not necessarily indicative of results which may
be expected for any other interim period or for the year as a whole.
TECHE BANCSHARES, INC.
MANAGEMENT'S DISCUSSION AND
ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
March 31, 1995
Liquidity
Liquidity is the ability to ensure that adequate funds are
available to satisfy contractual liabilities, fund operations, meet
withdrawal requirements of depositors and provide for customer's
credit needs in a timely manner. Our primary source of liquidity is
our core deposits. We supplement our core deposits with a line of
credit with one of our correspondent banks, public fund time
deposits, repurchase agreements with correspondent banks and a line
of credit with the Federal Home Loan Bank. Our sources of liquidity
are adequate to fund the loan demand that we are experiencing.
Capital Resources and Asset Quality
Our consolidated risk based capital to asset ratio was 17.26%
and Tier one capital ratio was 7.42% at March 31, 1995. The bank
only risk based capital ratio was 19.60% and Tier one capital was
8.45%. Banks are required to maintain a risk weighed capital to
asset ratio of 8% and Tier one capital ratio of 5%. Our risk based
capital ratio and Tier one capital ratio both exceed the required
amount.
Asset quality continues to be satisfactory due to our emphasis
on credit quality in our loan portfolio. Management is of the
opinion that we have all of our problem credits identified and that
an adequate allowance has been made for any potential future losses.
We continuously monitor the quality of our loans. Loans past
due 90 days or greater still accruing at March 31, 1995 were $76,313
an increase of $19,710 from December 31, 1994. Loans on which the
accrual of interest had been discontinued at March 31, 1995 totalled
$23,178 which is up $16,302 as compared to the amount at December
31, 1994.
We are actively marketing our other real estate owned. At
March 31, 1995 other real estate owned totalled $357,405 which is
down $53,747 or 13% from December 31, 1994.
Results of Operations
Our net income for the three months ended March 31, 1995 was
$67,628 down $5,170 or 7% as compared to that of the same period
last year. The majority of the decrease in our earnings was the
result of an increase in income tax expense. In prior years, we had
net operating loss carryforwards that were used to reduce our income
tax expense. In 1994 we used all of the remaining tax credits and
net operating loss carryforwards that we had.
Our net interest income for the three months ended March 1995
is up $43,052 as compared to the same period in 1994. Since the
beginning of February 1994 interest rates have risen 3% nationally.
This increase in rates caused our bank to increase the rate paid on
deposits faster than we were able to reprice our assets. During the
first quarter of 1995, our asset repricing started to catch up with
the deposit repricing. We have been able to maintain our net
interest income as the result of actively managing our net interest
expense.
Our bad debt reserve totalled $178,690 at March 31, 1995 which
represents 1.6% of our gross loans. Our reserve for loan loss was
adequate and did not require any additional provisions during the
first quarter of 1995.
Our other income is up $7,368 when compared to the same period
last year. The increase was due primarily as the result of gains on
the sale of real estate that we had during the first quarter.
Other expenses are up $42,021 as compared to the same time
last year. The primary causes for this increase in expenses were
increases in employee salaries and occupancy expenses. The
increases in salaries were the result of raises that were placed in
effect during the last quarter of 1994. The increase in occupancy
costs were due to increased costs from the addition of the ATM,
repairs at our branch for a fire that occurred in the first quarter
and depreciation expense associated with recent equipment purchases.
During the first quarter of 1995 we added a 24-hour voice response
system in order to provide better customer service. The 394-TECH
line provides customers 24 hour access to balance information,
checks cleared, time and temperature, deposits cleared and banking
hours. We actively monitor our costs and are always searching for
ways to cost effectively deliver services to our customers
A provision is made for income tax to reflect one-fourth
(3/12ths) of the annualized income tax that we anticipate we will
incur. In prior years we had net operating loss carryforwards and
investment tax credits that reduced our income tax expense. During
1994 we used all of the remaining credits and operating loss
carryforwards that were available.
PART II - OTHER INFORMATION
Item #1 Legal proceedings
Inapplicable
Item #2 Changes in Securities
Inapplicable
Item #3 Defaults Upon Senior Securities
Inapplicable
Item #4 Submission of Matters to be a Vote of Securities Holders
Inapplicable
Item #5 Other information
Inapplicable
Item #6 Exhibits and Reports on Form 8-K
Inapplicable
TECHE BANCSHARES, INC.
Pursuant to the requirement of the Securities Exchange Act of
1934, the Bank has duly caused this quarterly report to be signed on
its behalf by the undersigned thereunto duly authorized.
TECHE BANCSHARES, INC.
Registrant
/s/ Alcee J. Durand, Jr.
May 15, 1995 Alcee J. Durand, Jr.
Date President/CEO
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
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<PERIOD-START> JAN-01-1995
<PERIOD-END> MAR-31-1995
<CASH> 1192
<INT-BEARING-DEPOSITS> 594
<FED-FUNDS-SOLD> 2750
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 10930
<INVESTMENTS-CARRYING> 2848
<INVESTMENTS-MARKET> 2809
<LOANS> 10813
<ALLOWANCE> (179)
<TOTAL-ASSETS> 30709
<DEPOSITS> 28020
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<LIABILITIES-OTHER> 523
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<OTHER-SE> 1885
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<INTEREST-TOTAL> 534
<INTEREST-DEPOSIT> 206
<INTEREST-EXPENSE> 4
<INTEREST-INCOME-NET> 324
<LOAN-LOSSES> 0
<SECURITIES-GAINS> (4)
<EXPENSE-OTHER> 287
<INCOME-PRETAX> 104
<INCOME-PRE-EXTRAORDINARY> 104
<EXTRAORDINARY> 0
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<NET-INCOME> 68
<EPS-PRIMARY> 2.42
<EPS-DILUTED> 2.42
<YIELD-ACTUAL> .046
<LOANS-NON> 23
<LOANS-PAST> 76
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