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 QUARTER ENDED MARCH 31, 1995
Commission file number 2-90033
ASSUMPTION BANCSHARES, INC.
(Exact name of registrant specified in its charter)
Louisiana
(State or other jurisdiction of incorporation or organization)
72-0121470
(I.R.S. Employer Identification No.)
P.O. Box 398
110 Franklin Street
Napoleonville, Louisiana
(Address of principal executive office)
70390
(Zip code)
(504) 369-7269
(Registrant's telephone number, including area code)
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
Number of shares outstanding as of March 31, 1995:
160,000 Common Shares
<PAGE>
ASSUMPTION BANCSHARES, INC.
Condensed Consolidated Statements of Condition
March 31, 1995 and December 31, 1994
<TABLE>
<CAPTION>
March 31, December 31,
Assets 1995 1994
______ ____________ ____________
(Unaudited)
<S> <C> <C>
Cash and due from banks $ 4,766,264 5,646,119
Federal funds sold 3,150,000 4,800,000
____________ ____________
Cash and cash equivalents 7,916,264 10,446,119
Interest-bearing time deposits 99,000 99,000
Securities:
Held-to-maturity (market value of $25,284,000
and $23,765,000 at March 31, 1995 and
December 31, 1994, respectively) 26,061,280 25,509,568
Available-for-sale (amortized cost of $17,216,000
and $18,002,000 at March 31, 1995 and
December 31, 1994, respectively) 16,788,304 17,166,810
Loans 52,240,492 50,575,872
Less allowance for loan losses 1,111,722 1,103,823
_____________ ____________
Net loans 51,128,770 49,472,049
Other real estate 144,161 187,243
Bank premises and equipment, net 2,162,105 2,052,931
Accrued interest receivable 799,359 819,816
Other assets 559,623 672,006
_____________ ____________
$ 105,658,866 106,425,542
============= ============
Liabilities and Stockholders' Equity
____________________________________
Deposits:
Noninterest-bearing demand 11,727,584 11,419,962
NOW accounts 19,610,201 21,559,771
Money market accounts 11,099,637 11,186,172
Savings and IRA accounts 23,312,681 23,604,166
Certificates and other time deposits,
$100,000 and over 3,759,083 3,648,964
Other certificates of deposit 27,252,880 26,833,732
_____________ ____________
96,762,066 98,252,767
Accrued interest payable 278,971 193,474
Other liabilities and accrued expenses 172,703 63,584
_____________ _____________
Total liabilities 97,213,740 98,509,825
_____________ _____________
Stockholders' equity:
Common stock 800,000 800,000
Paid-in capital 450,000 450,000
Retained earnings 7,477,403 7,217,554
Net unrealized loss on securities (282,277) (551,837)
_____________ _____________
Total stockholders' equity 8,445,126 7,915,717
_____________ _____________
$ 105,658,866 106,425,542
============== =============
See accompanying notes to condensed consolidated financial
statements.
</TABLE>
<PAGE>
ASSUMPTION BANCSHARES, INC.
Condensed Consolidated Statements of Income
(Unaudited)
Three months ended March 31, 1995 and 1994
<TABLE>
<CAPTION>
1995 1994
_____________ ____________
<S> <C> <C>
Interest income:
Interest and fees on loans $ 1,106,340 981,634
Interest on securities:
Taxable 512,998 580,525
Exempt from federal income taxes 160,190 80,916
Interest on federal funds sold 73,699 62,973
Interest on deposits with banks 2,034 999
_____________ ___________
Total interest income 1,855,261 1,707,047
Interest expense on deposits 741,085 651,147
_____________ ____________
Net interest income 1,114,176 1,055,900
Provision for loan losses 9,000 30,000
_____________ ____________
Net interest income after provision
for loan losses 1,105,176 1,025,900
Other income 150,768 131,709
Other expenses (922,445) (802,235)
_______________ ___________
Income before income taxes 333,499 355,374
Income tax expense 73,650 73,411
_______________ ___________
Net income $ 259,849 281,963
=============== ===========
Per share data:
Net income $ 1.62 1.76
============== ===========
Number of shares used in computation 160,000 160,000
============== ===========
See accompanying notes to condensed consolidated financial
statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ASSUMPTION BANCSHARES, INC.
Condensed Consolidated Statements of Changes in Stockholders'
Equity
(Unaudited)
Three months ended March 31, 1995 and 1994
Net
unrealized
gain Total
Common Paid-in Retained (loss) on stockholders'
stock capital earnings securities equity
___________ _____________ _____________ ______________ ______________
<S> <C> <C> <C> <C> <C>
Balances at
December 31, 1993 $ 800,000 450,000 6,411,335 271,185 7,932,520
Net income for three
months ended
March 31, 1994 - - 281,963 - 281,963
Decrease in net
unrealized gain
on securities - - - (222,142) (222,142)
___________ _____________ _____________ ______________ ______________
Balances at
March 31, 1994 $ 800,000 450,000 6,693,298 49,043 7,992,341
=========== ============= ============= ============== ==============
Balances at
December 31, 1994 800,000 450,000 7,217,554 (551,837) 7,915,717
Net income for three
months ended
March 31, 1995 - - 259,849 - 259,849
Decrease in net
unrealized loss
on securities - - - 269,560 269,560
___________ _____________ ______________ _____________ ______________
Balances at
March 31, 1995 $ 800,000 450,000 7,477,403 (282,277) 8,445,126
=========== ============= ============== ============= ==============
</TABLE>
See accompanying notes to condensed consolidated financial
statements.
<PAGE>
<TABLE>
<CAPTION>
ASSUMPTION BANCSHARES, INC.
Condensed Consolidated Statements of Cash Flows
(Unaudited)
Three months ended March 31, 1995 and 1994
1995 1994
___________ __________
<S> <C> <C>
Cash flows from operating activities:
Net income $ 259,849 281,963
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation 49,950 49,949
Provision for loan losses 9,000 30,000
Net gain on sale of securities (17,713) (2,359)
Gain on sale of other assets acquired in
settlement of loans (10,000) -
Decrease in accrued interest receivable 20,457 19,062
Increase in accrued interest payable 85,497 10,427
Increase in other assets and other
liabilities 82,742 99,119
__________ __________
Net cash provided by operating
activities 479,782 488,161
__________ __________
Cash flows from investing activities:
Proceeds from sales of securities available
for sale 968,516 2,842,603
Maturities of and principal payments
on securities held-to-maturity 721,982 3,149,148
Purchases of securities available-for-sale (489,531) -
Maturities of and principal payments
on securities available-for-sale 325,554 1,009,539
Purchases of securities held-to-maturity (1,273,694) (8,513,417)
Loans originated, net of principal
collections (1,665,721) (1,431,662)
Proceeds from sales of other real estate 53,082 -
Capital expenditures (159,124) (88,467)
___________ ____________
Net cash used in investing activities (1,518,936) (3,032,256)
___________ ____________
Cash flows from financing activities:
Net increase (decrease) in demand deposits,
NOW accounts, money market accounts and
savings accounts (2,019,968) 1,350,494
Net increase (decrease) in certificates of
deposit and other time deposits of $100,000
and over 529,267 (15,470)
____________ ____________
Net cash provided (used) in financing
activities (1,490,701) 1,335,024
____________ ____________
Net decrease in cash and cash
equivalents (2,529,855) (1,209,071)
Cash and cash equivalents at beginning of period 10,446,119 11,650,432
____________ ____________
Cash and cash equivalents at end of period $ 7,916,264 10,441,361
============ ============
Supplemental disclosures:
Interest paid $ 655,588 640,719
============ ============
See accompanying notes to condensed consolidated financial
statements.
</TABLE>
<PAGE>
ASSUMPTION BANCSHARES, INC.
Notes to Condensed Consolidated Financial Statements
Three months ended March 31, 1995 and 1994
The condensed consolidated financial statements reflect all
adjustments which are, in the opinion of management, necessary
for a fair presentation of financial position and results of
operations for the interim periods presented. All adjustments
are of a normal recurring nature.
Cash and Cash Equivalents
_________________________
For purposes of the condensed consolidated statements of cash
flows, cash and cash equivalents represent cash and due from
banks and federal funds sold.
Securities
__________
The Bank adopted the provisions of Statement of Financial
Accounting Standards No. 115, "Accounting for Certain Investments
in Debt and Equity Securities" (SFAS No. 115) at December 31,
1993. Under Statement 115, the Bank classifies its securities in
one of three categories: trading, available-for-sale, or held-to-
maturity. Trading securities are bought and held principally for
the purpose of selling them in the near future. Held-to-maturity
securities are those securities in which the Bank has the ability
and intent to hold the security until maturity. All other
securities not included in trading or held-to-maturity are
classified as available-for-sale.
Trading and available-for-sale securities are recorded at fair
value. Held-to-maturity securities are recorded at amortized
cost, adjusted for the amortization or accretion of premiums or
discounts. Unrealized holding gains and losses on trading
securities are included in earnings. Unrealized holding gains
and losses, net of the related tax effect, on the available-for-
sale securities are excluded from earnings and are reported as a
separate component of stockholders' equity until realized.
Transfers of securities between categories are recorded at fair
value at the date of transfer. Unrealized holding gains and
losses are recognized in earnings for transfers into trading
securities. Unrealized holding gains or losses associated with
transfers of securities from held-to-maturity to available-for
sale are recorded as a separate component of stockholders'
equity. The unrealized holding gains or losses included in the
separate component of equity for securities transferred from
available-for-sale to held-to-maturity are maintained and
amortized into earnings over the remaining life of the security
as an adjustment to yield in a manner consistent with the
amortization or accretion of premium or discount on the
associated security.
A decline in the market value of any available-for-sale or held-
to-maturity security below cost that is deemed other than
temporary results in a charge to earnings resulting in the
establishment of a new cost basis for the security.
Premiums and discounts are amortized or accreted over the life of
the related held-to-maturity security as an adjustment to yield
using the effective interest method. Interest income is
recognized when earned. Realized gains and losses for securities
classified as available-for-sale and held-to-maturity are
included in earnings and are derived using the specific
identification method for determining the cost of securities
sold.
<PAGE>
ASSUMPTION BANCSHARES, INC.
Notes to Condensed Consolidated Financial Statements
Earnings per share
__________________
Earnings per share have been computed on the basis of the
weighted average number of shares outstanding.
Reclassification
________________
Certain reclassifications were made to the condensed consolidated
statements of cash flows of prior periods to conform with the
1994 presentation.
Change in Accounting Principles - Accounting by Creditors for
Impairment of a Loan
____________________
During the first quarter of 1995, the Bank adopted Statement of
Financial Accounting Standards No. 114, Accounting by Creditors
for Impairment of a Loan (SFAS No. 114) and Statement of
Financial Accounting Standards No. 118, Accounting by Creditors
for Impairment of a Loan - Income Recognition and Disclosures
(SFAS No. 118). Pursuant to SFAS No. 114 and SFAS No. 118, a
loan is considered to be impaired when it is probable that a
creditor will be unable to collect principal and interest amounts
due according to the contractual terms of the loan agreement.
When a loan is impaired, the measurement of its impairment can be
determined in one of three ways, as follows: (1) the present
value of the expected cash flows of the loan discounted at the
loan's original effective interest rate, (2) the observable
market price of the impaired loan, or (3) the fair value of the
collateral of a collateral-dependent loan. The amount by which
the recorded investment in the loan exceeds the measure of the
impaired loan is recognized by recording a valuation allowance
with a corresponding charge to the provision for possible credit
losses. The effect of adopting SFAS 114 and SFAS 118 on the
Bank's financial condition and results of operations was
immaterial.
At March 31, 1995, the recorded investment in loans that is
considered to be impaired under SFAS 114 was $795,000, all of
which were on nonaccrual, for which the related allowance for
possible credit losses was $180,000. The average recorded
investment in impaired loans during the first quarter of 1995 was
approximately $595,000 and the Bank recognized no interest income
on those impaired loans in the first quarter of 1995.
<PAGE>
ASSUMPTION BANCSHARES, INC.
Management's Discussion and Analysis of
Financial Condition and Results of Operations
Results of Operations
_____________________
Net interest income for the three months ended March 31, 1995 was
slightly higher than amounts for the three-month period ended
March 31, 1994. The Bank's net interest margins were 4.16% and
3.82%, at March 31, 1995 and 1994, respectively.
The first quarter 1995 provision for loan losses was $9,000
compared to $30,000 for the first quarter of 1994. This lower
provision is due to the continued low level of charge-offs
experienced by the Bank. Net charge-offs for the three months
ended March 31, 1995 were $1,000. Additionally, the Bank's
allowance for loan losses as a percentage of gross loans has
remained consistent at 2.13% and 2.18% at March 31, 1995 and
December 31, 1994, respectively.
Changes in the total allowance for loan losses for the three
months ended March 31, 1995 and 1994 were as follows:
<TABLE>
<CAPTION>
Three months
ended
1995 1994
____________ ___________
<S> <C> <C>
Balance at beginning of period $ 1,103,823 1,129,774
Charge-offs (15,710) (7,314)
Recoveries 14,609 7,976
____________ ____________
Net (charge-offs) recoveries (1,101) 662
Provision for loan losses 9,000 30,000
____________ ____________
Balance at end of period $ 1,111,722 1,160,436
============ ============
</TABLE>
Other expenses at March 31, 1995 totaled $922,445, up from
$802,235 for the first quarter 1994. Salary expense is higher in
1995 due primarily to the timing of certain wages compared to the
first quarter of 1994. The Bank also expended more on
advertising and consulting fees in the first quarter of 1995 as
compared to the same period in 1994.
The provision for income taxes is based on management's estimate
of the expected effective tax rate for the entire year.
Liquidity and Capital Resources
_______________________________
Fluctuating interest rates and competitive forces in the
financial services industry have intensified the need for
management of and matching maturities of various assets and
liabilities. This process involves maintaining liquidity and
controlling interest rate sensitivity. The goal of liquidity
management is to ensure funds are available for customer needs.
Interest rate sensitivity management attempts to match shifts in
earning asset yields with interest paying liability rates.
<PAGE>
ASSUMPTION BANCSHARES, INC.
Management's Discussion and Analysis of
Financial Condition and Results of Operations
Securities, comprised of U.S. Treasuries, obligations of states
and municipalities and government guaranteed mortgage-backed
securities, represented 40.6% and 40.1% of total assets at March
31, 1995 and DecemberE31, 1994, respectively. The securities
portfolio is managed with the primary objective of generating
interest income while maintaining an appropriate level of asset
liquidity and controlling the Bank's net interest rate risk
position.
The market value of the securities portfolio at March 31, 1995
was 98% of book value, compared to 96% at December 31, 1994.
Management does not anticipate any significant effect on future
earnings, liquidity or capital resources as a result of the
amounts of unrealized gains or unrealized losses in the
securities portfolio.
Net earnings for the first quarter 1995 of $260,000 increased the
Bank's stockholders' equity while the unrealized losses on
securities classified as available-for-sale decreased by
$270,000, resulting in a net increase in equity for the first
three months of 1995 of $530,000. Management is not aware of any
recommendations by regulatory authorities or other matters which
are reasonably likely to have a material effect on the Bank's
capital resources, liquidity or operations.
During the first quarter of 1995, the Company adopted Statement
of Financial Accounting Standards No. 114, Accounting by
Creditors for Impairment of a Loan (SFAS 114) and Statement of
Financial Accounting Standards No. 118, Accounting by Creditors
for Impairment of a Loan - Income Recognition and Disclosures
(SFAS 118). See Notes to the Condensed Consolidated Financial
Statements for additional information concerning the Company's
adoption of SFAS 114 and SFAS 118.
<PAGE>
PART II
_______
Items 1 through 5 are not applicable.
__________________
Item 6. Exhibits and Reports on Form 8-K. No Form 8-K was
required to be filed during the quarter ended March 31, 1995.
SIGNATURE
_________
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.
/s/ Joseph H. Montero
_______________________________
Joseph H. Montero,
President and
Chief Executive Officer
Date: May 15, 1995
<TABLE> <S> <C>
<ARTICLE> 9
<LEGEND>
STATEMENTS FOR THE PERIOD ENDING MARCH 31, 1995 AND IS QUALIFIED IN ITS ENTIRETY
BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> MAR-31-1995
<CASH> 4,766
<INT-BEARING-DEPOSITS> 99
<FED-FUNDS-SOLD> 3,150
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 16,788
<INVESTMENTS-CARRYING> 26,061
<INVESTMENTS-MARKET> 25,284
<LOANS> 52,240
<ALLOWANCE> 1,112
<TOTAL-ASSETS> 105,659
<DEPOSITS> 96,762
<SHORT-TERM> 0
<LIABILITIES-OTHER> 452
<LONG-TERM> 0
<COMMON> 800
0
0
<OTHER-SE> 7,645
<TOTAL-LIABILITIES-AND-EQUITY> 8,445
<INTEREST-LOAN> 1,106
<INTEREST-INVEST> 673
<INTEREST-OTHER> 76
<INTEREST-TOTAL> 1,855
<INTEREST-DEPOSIT> 741
<INTEREST-EXPENSE> 741
<INTEREST-INCOME-NET> 1,114
<LOAN-LOSSES> 9
<SECURITIES-GAINS> 17
<EXPENSE-OTHER> 922
<INCOME-PRETAX> 333
<INCOME-PRE-EXTRAORDINARY> 260
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 260
<EPS-PRIMARY> 1.62
<EPS-DILUTED> 1.62
<YIELD-ACTUAL> 7.62
<LOANS-NON> 795
<LOANS-PAST> 267
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 795
<ALLOWANCE-OPEN> 1,104
<CHARGE-OFFS> 16
<RECOVERIES> 15
<ALLOWANCE-CLOSE> 1,112
<ALLOWANCE-DOMESTIC> 1,112
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
