UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 10-K/A
Annual Report Pursuant to Section 13 or 15(d) of the Securities
Exchange
Act of 1934
For the fiscal year ended December 31, 1998
Commission file Number 01-16934
BOL BANCSHARES, INC.
(Exact name of registrant as specified in its charter.)
Louisiana 72-1121561
(State of incorporation) (IRS Employer Identification No.)
300 St. Charles Avenue, New Orleans, La. 70130
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (504)889-9400
SECURITIES REGISTERED PURSUANT TO SECTION 12(b) OF THE ACT:
NONE
SECURITIES REGISTERED PURSUANT TO SECTION 12(g) OF THE ACT:
NONE
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange act
of 1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days.
Yes X No
Indicate by check mark if disclosure of delinquent filers pursuant to Item
405 of Regulation S-K is not contained herein, and will not be contained,
to the best of registrant's knowledge, in definitive proxy or information
statements incorporated by reference in Part III of this Form 10-K or any
amendment to this Form 10-K. [ ].
State the aggregate market value of the voting stock held by non-affiliates
of the Registrant as of December 31, 1998.
Approximately $914,857 (a)
Indicate the number of shares outstanding of each of the Registrant's
classes of common stock as of the latest practical date.
Common Stock: $1.00 par value; 179,145 shares outstanding as of
February 28, 1999.
(a) For the purposes of this computation, shares owned by directors and
executive officers have been excluded.
<PAGE>
Item 6
Selected Consolidated Financial Data of the Company
The following selected financial data should be read in conjunction
with Management's Discussions and Analysis of Financial Condition and
Results of Operations of the Company which follows and the Company's
financial statements and related notes included elsewhere herein.
<TABLE>
<CAPTION>
For The Years Ended
December 31,
1998 1997 1996 1995 1994
(dollars in thousands, except per share data)
<S> <C> <C> <C> <C> <C>
Operations:
Net Interest Income $7,827 $8,189 $10,133 $9,061 $8,190
Provision for Loan Losses 1,085 3,630 2,040 1,749 805
Non-Interest Income 2,249 2,938 2,440 2,703 3,513
Non-Interest Expense 9,123 10,643 10,647 9,729 10,045
Income Tax Expense 96 (1,171) (20) 141 205
(Benefit)
Net Income(Loss) (228) (1,975) (94) 145 648
Per Share:
Common Shares Outstanding 179,145 179,145 179,145 179,145 179,258
Net Income (Loss) (1.27) (11.03) (0.52) 0.81 3.61
Cash Dividends - Common 0.00 0.00 0.00 0.00 0.00
Book Value at End of 16.47 16.62 27.64 28.30 27.64
Period
Preferred Shares
Outstanding 2,302,811 2,302,811 2,302,811 2,302,811 2,309,103
Cash Dividends - Preferred 0.00 0.00 0.00 0.00 0.08
Stock
Balances at End of Period:
Investment Securities 4,789 10,567 9,060 11,136 15,188
Fed Funds Sold 26,950 21,150 14,400 10,725 6,075
Loans, Net of Unearned 61,542 57,619 69,298 74,943 67,802
Interest
Allowance for Loan Losses 1,800 1,800 1,500 1,500 935
Other Real Estate Owned 1,357 1,473 2,273 1,994 2,771
Total Assets 103,886 102,709 106,091 108,589 103,102
Total Deposits 94,583 93,941 95,141 97,386 91,764
Shareholders' Equity 5,185 5,280 7,251 7,368 7,257
Ratios:
Return on Average Assets -0.23% -1.95% -0.09% 0.14% 0.61%
Return on Average Equity -4.18% -34.49% -1.27% 1.87% 9.34%
Primary Capital to Total
Assets and
Allowance for Possible 5.12% 5.23% 6.93% 6.68% 6.93%
Loan Losses
Allowance for Possible Loan Losses
as a Percentage of Loans, 2.92% 3.12% 2.61% 2.00% 1.38%
Net
Non-Performing Loans as a
Percentage of Loans, Net 0.13% 0.15% 0.47% 0.32% 0.36%
(1)
Non-Performing Loans as a
Percentage of Total Assets 1.38% 1.51% 2.44% 2.05% 2.92%
(2)
Capital Ratios: Bank
Tier 1 Risk Based Capital 10.27% 10.61% 12.32% 11.46% 11.87%
Ratio
Risk Based Capital Ratio 11.54% 11.88% 13.58% 12.72% 13.12%
Tier 1 Leverage Ratio 6.89% 6.84% 8.60% 8.54% 9.43%
</TABLE>
(1) Non-performing loans are comprised of non-accrual loans and
restructured loans. As of dates reported, the Company did not have any
restructured loans.
(2) Non-performing assets are comprised of non-performing loans, ORE and
other repossessed assets.
<PAGE>
Item 7
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS OF THE COMPANY
The following discussion and analysis presents the more significant
factors affecting the financial condition and results of operations for the
years ending December 31, 1998, 1997 and 1996. The consolidated financial
statements and related notes should be read in conjunction with this review.
Overview
The Company has remained constant in total assets in the past five
years. The Company had total assets of $103,886,000 at December 31, 1998,
and $103,102,000 at December 31, 1994. The Company currently operates
through five locations in the metropolitan New Orleans area and two
locations in St. Tammany Parish.
Historically, credit card loans have been an important part of the
Company's total loan portfolio. At December 31, 1994, credit card loans
were $37,382,000 which was 55.13% of the Company's loan portfolio of
$67,802,000. At December 31, 1998, credit card loans totaled $25,200,000,
or 40.96% of the Company's total loans. The decrease in the Company's
credit card loans is largely attributable to competition from other banks
and nontraditional credit card issuers (e.g. AT&T and GMAC), and the loss
of proprietary business.
The Company's current strategy is to continue to grow its traditional
banking operations primarily in the metropolitan New Orleans area and to
expand its credit card lending and proprietary accounts. This will be
accomplished through an aggressive Marketing campaign and the acquisition
of several Visa & MasterCard portfolios. During 1998 the Company purchased
Visa & MasterCard portfolios totaling $4,792,000, at a premium of $673,000.
The Company focuses on providing its customers with the financial
sophistication and breadth of products of a regional bank while successfully
retaining the local appeal and level of service of a community bank.
Results of Operations
Net Income
The Company's net loss for 1998 was $228,000, or $(1.27) per share,
compared to a net loss of $1,975,000 or $(11.03) per share in 1997. This
$1,747,000 decrease was primarily due to the decrease in losses suffered by
the Company from its credit card portfolio with charge-offs of $1,878,000 in
1998 compared to $3,996,000 in 1997. Net charge-offs totaled $1,086,000 in
1998 as compared to $3,330,000 in 1997 resulting in a decrease of $2,244,000.
The Company's net loss was $1,975,000, or $(11.03) per share in 1997,
compared to net loss of $94,000 or $(0.52) per share in 1996, a significant
decrease. This $1,881,000 decrease was primarily due to the increase in
losses suffered by the Company from its credit card portfolio. The Reserve
for Loan Losses increased to $1,800,000 in 1997 from $1,500,000 in 1996 due
to $300,000 charged to operations in order to comply with FDIC regulations
with respect to charge-offs in the credit card portfolio. Net charge-offs
totaled $3,330,000 in 1997 as compared to $2,040,000 in 1996.
This $1,290,000 increase in net charge-offs occurred mainly in the Company's
credit card portfolio and is a result of the economy and overburdened credit
card debt of consumers. These losses are, however, consistent with the
experience of many banks nationwide with respect to their credit card
portfolios.
The Company's net loss was $94,000, or $(0.52) per share in 1996,
compared to net income of $144,000 or $.80 per share in 1995, a significant
decrease. This $238,000 decrease was primarily due to the increase in
losses suffered by the Company from its credit card portfolio. Net charge-
offs totaled $2,040,000 in 1996 as compared to $1,183,000 in 1995. This
$857,000 increase in net charge-offs occurred mainly in the Company's
credit card portfolio and is a result of the economy and overburdened
credit card debt of consumers. These losses are, however, consistent with
the experience of many banks nationwide with respect to their credit card
portfolios.
<PAGE>
Net Interest Income Margin
Interest income decreased $484,000 or 4.70% to $9,814,000 in 1998 from
$10,298,000 in 1997. This decrease is mainly due to a 31.30% decrease in
interest income on proprietary credit card loans. Total interest expense
decreased $121,000 or 5.78% to $1,987,000 in 1998 from $2,108,000 in 1997.
Interest income decreased $2,028,000 or 16.46% to $10,298,000 in 1997
from $12,326,000 in 1996. This decrease is mainly due to a 55.72% decrease
in interest income on proprietary credit card loans. Total interest expense
decreased $85,000 or 3.83% to $2,108,000 in 1997, from $2,193,000 in 1996.
Interest income increased $836,000 or 7.28% to $12,326,000 in 1996 from
$11,490,000 in 1995. This increase is mainly due to a 56.24% increase in
interest income on proprietary credit card loans and the continued growth in
the credit card portfolio. Total interest expense decreased $236,000 or
9.72% to $2,193,000 in 1996, from $2,429,000 in 1995. This decrease is
mainly due to a 17.10% decrease in interest paid on deposits due to an
average interest rate paid of 3.27% in 1996 as compared to 3.60% in 1995.
Interest earned on Federal Funds Sold increased 14.04% in 1998 to
$1,145,000 from $1,004,000 in 1997. The average Federal Funds Sold for 1998
was $21,566,000 and $18,372,000 in 1997. The average interest rate earned
on Federal Funds Sold in 1998 was 5.31% as compared to 5.46% in 1997.
Interest earned on investment securities decreased 22.98% due to a decrease
in the average balance to $4,789,000 in 1998 from $10,567,000 in 1997 with
an average rate earned of 5.86% in 1998 and 5.78% in 1997.
Interest earned on Federal Funds Sold increased 72.81% in 1997, to
$1,004,000 from $581,000 in 1996, due to an average interest rate earned of
5.47% as compared to 5.28% in 1996. The average Federal Funds Sold for
1997, was $18,372,000 and $10,997,000 in 1996. Interest earned on
investment securities increased 15.46% due to a increase in the average
balance to $10,232,000 in 1997, from $9,353,000 in 1996, with an average
rate earned of 5.78% in 1997, and 5.47% in 1996.
Commercial loans average balance increased $2,262,000 or 8.42% to
$29,121,000 on December 31, 1996, from $26,859,000 on December 31, 1995 due
to the Company's continued positive experiences in generating new commercial
loans. Interest income on commercial loans increased $212,000 to $2,807,000
in 1996, from $2,595,000 in 1995. The average interest rate charged on
commercial loans in 1996, was 9.64% as opposed to 9.66% in 1995. Interest
earned on Federal Funds Sold increased 1.96% in 1996, to $581,000 from
$570,000 in 1995, due to an average interest rate earned of 5.29% as
compared to 5.80% in 1995. The average Federal Funds Sold for 1996, was
$10,997,000 and $9,830,000 in 1995. Interest earned on investment securities
decreased 26.84% due to a decrease in the average balance to $9,353,000 in
1996, from $13,336,000 in 1995, with an average rate earned of 5.62% in 1996,
and 5.39% in 1995.
<PAGE>
Noninterest Income and Expense
The amount of noninterest income and noninterest expenses of a banking
organization relate closely to the size of the total assets and deposits
and the number of deposit accounts. The amount of noninterest expense
represents the cost of operating the banking organization.
The major components of noninterest income are service charges related
to deposit accounts, cardholder and other credit card fees, Ore income,
gain on sale of ORE and other noninterest income as reflected in the below
table.
Total noninterest income decreased to $2,249,000 in 1998 from $2,938,000
in 1997 or a 23.43% decrease. The gain on sale of ORE income decreased to
$20,000 in 1998 from $61,000 in 1997.
Total noninterest income increased to $2,938,000 in 1997 from $2,441,000
in 1996 or a 20.36% increase. A judgment rendered against the Bank in 1994,
for $390,000 was reversed. The gain on sale of ORE income increased to
$61,000 in 1997 from $7,000 in 1996.
<TABLE>
<CAPTION>
Noninterest Income
December 31,
1998 1997 1996
(Dollars in Thousands)
<S> <C> <C> <C>
Service Charges 653 618 643
NSF Charges 666 725 783
Gain on Sale of Securities - 16 -
Cardholder & Other Credit 456 388 448
Card Income
Membership Fees 224 245 218
Other Comm & Fees 34 101 112
ORE Income 13 11 24
Gain on Sale of ORE 20 61 7
Reversal of Litigation
Settlement - 390 -
Other Income 185 383 205
Total Non-Interest Income $2,249 $2,938 $2,440
</TABLE>
Provision for Income Taxes
The income tax provision (benefit) for the Company and the Bank on a
consolidated basis, for the year 1998 was $96,000 as compared to $(1,171,000)
in 1997 and $(20,000)in 1996. The provision for income taxes consists of
provisions for federal taxes only. Louisiana does not have an income tax for
corporations.
Capital Adequacy
The FDIC's regulations require that a state-chartered bank, such as
the Bank of Louisiana maintain a minimum Tier 1 risk based capital ratio of
4% and a risk based capital ratio of 8%. The Bank, however, is required to
maintain a Tier 1 leverage ratio of 7.00% as part of a Memorandum of
Understanding signed in 1996 which replaces the Memorandum of Understanding
dated November 8, 1994. See "Supervision and Regulation Enforcement Action".
The Bank's "primary capital ratio" is the sum of shareholders' equity
divided by total assets. The Bank's capital to asset ratio was 5.23% at
December 31, 1998, 6.84% at December 31, 1997, and 8.60% at December 31, 1996.
The Bank intends on increasing capital by implementing an extensive
marketing program and to obtain additional proprietary accounts which will
maximize the highest yield possible and thereby improve earnings.
Shareholders' Equity
Shareholders' equity decreased $95,000 or 1.79% to $5,185,000 at
December 31, 1998 from $5,280,000 at December 31, 1997. This decrease in
shareholders' equity since December 31, 1997, was attributable to the net
loss of $228,000 and an increase in accumulated other comprehensive income of
$134,000.
Shareholders' equity decreased $1,971,000 or 27.19% to $5,280,000 at
December 31, 1997 from $7,251,000 at December 31, 1996. This decrease in
shareholders' equity since December 31, 1996, was attributable to $1,975,000
in losses.
Shareholders' equity decreased $117,000 or 1.59% to $7,251,000 at
December 31, 1996, from $7,368,000 at December 31, 1995, because of
fluctuations in shareholders' equity. Realized shareholder's equity
(shareholders' equity excluding net unrealized holdings gains or losses on
investment securities classified as available-for-sale) at December 31, 1996
was $7,256,000. The $117,000 decrease in shareholders' equity since
December 31, 1995, was attributable to $94,000 in losses and a $23,000
decline in net unrealized value of investment securities, net of tax,
classified as available-for-sale.
The leverage ratio (Tier 1 capital to total assets) at December 31,
1998, was 6.89% compared to 6.84% at December 31, 1997, which are compared
to the minimum capital requirement of 4.00%.
The leverage ratio (Tier 1 capital to total assets) at December 31,
1997, was 6.84% compared to 8.60% at December 31, 1996, which are compared
to the minimum capital requirement of 4.00%.
At December 31, 1998, based on the Federal Reserve Board's guidelines,
the Company's Tier 1 risk based capital ratio was 10.27, and the risk based
capital ratio was 11.54%.
At December 31, 1997, based on the Federal Reserve Board's guidelines,
the Company's Tier 1 risk based capital ratio was 10.61, and the risk based
capital ratio was 11.88%.
At December 31, 1996, based on the Federal Reserve Board's guidelines,
the Company's Tier 1 capital ratio was 12.32%, and the total risk-based
capital ratio was 13.58%.
The ratio of average shareholders' equity to average assets was 5.45%
in 1998, 5.66% in 1997, and 7.06% in 1996.
<PAGE>
Item 14
Exhibits, Financial Statement Schedules, and Reports on Form 8-K
<TABLE>
<CAPTION>
BOL BANCSHARES, INC. & SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
ASSETS
December 31,
1998 1997
<S> <C> <C>
Cash and Due from Banks
Non-Interest Bearing Balances and Cash $6,692,995 $7,734,005
Federal Funds Sold 26,950,000 21,150,000
Investment Securities
Securities Held-to-Maturity (Fair Value of
$4,514,374 in 1998 and $9,510,313 in 1997) 4,497,942 9,478,718
Securities Available-for-Sale, at Fair Value 291,400 1,088,663
Loans - Less Allowance for Loan Losses of
$1,800,000 in 1998 and 1997, and Unearned Discounts
of $215,256 in 1998 and $1,847 in 1997 59,741,831 55,819,114
Property, Equipment and Leasehold Improvements
(Net of Depreciation and Amortization) 2,505,740 2,697,583
Other Real Estate 1,356,893 1,473,160
Other Assets 1,311,319 1,658,277
Deferred Taxes 454,129 618,684
Income Taxes Receivable - 876,831
Letters of Credit 84,052 113,532
$103,886,301 $102,708,567
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
<TABLE>
<CAPTION>
LIABILITIES AND STOCKHOLDERS' EQUITY
December 31,
1998 1997
<S> <C> <C>
LIABILITIES
Deposits
Non-Interest Bearing $36,826,094 $35,124,103
Interest Bearing 57,757,018 8,816,434
Notes Payable 2,272,387 2,283,508
Other Liabilities 1,035,457 412,886
Accrued Litigation Settlement 200,000 150,000
Letters of Credit Outstanding 84,052 113,532
Accrued Interest 525,969 528,269
Total Liabilities 98,700,977 97,428,732
STOCKHOLDERS' EQUITY
Preferred Stock - Par Value $1
2,302,811 Shares Issued and Outstanding in 2,302,811 2,302,811
1998 and 1997
Common Stock - Par Value $1
179,145 Shares Issued and Outstanding in 1998 179,145 179,145
and 1997
Accumulated Other Comprehensive Income 133,187 (569)
Capital in Excess of Par - Retired Stock 14,888 14,888
Retained Earnings 2,555,293 2,783,560
Total Stockholders' Equity 5,185,324 5,279,835
$103,886,301 $102,708,567
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
<TABLE>
<CAPTION>
BOL BANCSHARES, INC. & SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME (LOSS)
For the Years Ended
December 31,
1998 1997 1996
<S> <C> <C> <C>
INTEREST INCOME $9,813,783 $10,297,883 $12,326,563
INTEREST EXPENSE 1,986,681 2,108,592 2,193,255
Net Interest Income 7,827,102 8,189,291 10,133,308
PROVISION FOR LOAN LOSSES 1,085,625 3,630,273 2,039,779
Net Interest Income After
Provision
for Loan Losses 6,741,477 4,559,018 8,093,529
OTHER INCOME
Service Charges on Deposit
Accounts 1,318,419 1,398,552 1,481,144
Other Non-Interest Income 930,992 1,133,436 958,796
Reversal of Litigation - 390,000 -
Settlement
Gain on Sale of Securities - 15,860 -
Total Other Income 2,249,411 2,937,848 2,439,940
OTHER EXPENSES
Salaries and Employee 3,669,949 3,974,048 4,189,606
Benefits
Occupancy Expense 1,956,172 1,937,416 1,848,469
Loss on Litigation 50,000 150,000 -
Other Non-Interest Expense 3,447,384 4,581,491 4,609,011
Total Other Expenses 9,123,505 10,642,955 10,647,086
INCOME (LOSS) BEFORE
INCOME TAX EXPENSE (BENEFIT) (132,617) (3,146,089) (113,617)
INCOME TAX EXPENSE (BENEFIT) 95,650 (1,170,803) (20,028)
NET INCOME (LOSS) ($228,267)($1,975,286) ($93,589)
EARNINGS (LOSS) PER SHARE OF
COMMON STOCK $(1.27) ($11.03) ($0.52)
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
BOL BANCSHARES, INC. & SUBSIDIARY
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
<TABLE>
<CAPTION>
For the Years Ended
December 31,
1998 1997 1996
<S> <C> <C> <C>
NET INCOME (LOSS) $(228,267) ($1,975,286) ($93,589)
OTHER COMPREHENSIVE INCOME,
NET OF TAX:
Unrealized Holding Gains (Losses)on
Investment Securities Available-for-Sale
Arising During the Period 133,806 3,919 (21,960)
Less: Reclassification Adjustment for
Gains Included in Net Income (50) (81) (1,483)
OTHER COMPREHENSIVE INCOME 133,756 3,838 (23,443)
COMPREHENSIVE INCOME (LOSS) $(94,511) ($1,971,448) ($117,032)
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
BOL BANCSHARES, INC. & SUBSIDIARY
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
<TABLE>
<CAPTION>
Accumul- Capital
ated In
Other Excess
of
Preferred Common Comprehen Par Retained
-sive
Income Retired Earnings Total
Stock Stock Stock
<S> <C> <C> <C> <C> <C> <C>
BALANCE - December $2,302,811 $179,145 $19,036 $14,888 $4,852,435 $7,368,315
31, 1995
Other Comprehensive Income,
Net of Applicable Deferred
Income Taxes - - (23,443) - - (23,443)
Net (Loss) for the - - - - (93,589) (93,589)
Year 1996
BALANCE - December 2,302,811 179,145 (4,407) 14,888 4,758,846 7,251,283
31, 1996
Other ComprehensiveIncome,
Net of Applicable
Deferred Income Taxes - - 3,838 - - 3,838
Net (Loss) for the - - - - (1,975,286) (1,975,286)
Year 1997
BALANCE - December 2,302,811 179,145 (569) 14,888 2,783,560 5,279,835
31, 1997
Other Comprehensive Income,
Net of Applicable Deferred
Income Taxes - - 133,756 - - 133,756
Net Loss for the - - - - (228,267) (228,267)
Year 1998
BALANCE - December $2,302,811 $179,145 $133,187 $14,888 $2,555,293 $5,185,324
31, 1998
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
BOL BANCSHARES, INC. & SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE F
INCOME TAXES
The components of the provision for income tax expense (benefit) are:
<TABLE>
<CAPTION>
1998 1997 1996
<S> <C> <C> <C>
Current $- $(876,831) $(59,302)
Reduction for Excess Provision
in Prior Year: - (11,060) (16,151)
Deferred 95,650 (282,912) 55,425
Total Provision for
Income Tax $95,650 $(1,170,803) $(20,028)
</TABLE>
A reconciliation of income tax at the statutory rate to income tax
expense at the Company's effective rate is as follows:
<TABLE>
<CAPTION>
1998 1997 1996
<S> <C> <C> <C>
Computed Tax at the Expected
Statutory Rate $(45,090) $(1,069,670) $(38,630)
Reduction for Excess Provision
in Prior Year - (11,060) (16,151)
Tax Exempt Income - (98,835) -
Other Adjustments 139,584 8,762 34,753
Income Tax Expense (Benefit)
for Operations $ 95,650 $(1,170,803) $(20,028)
1998 1997 1996
Income Taxes Currently Receivable:
Current Income Tax Expense
(Benefit) from Operations $ - $(876,831) $(75,453)
Other Adjustments - - 16,151
Prepaid Tax - - (187,728)
Income Tax Receivable $- $(876,831) $(247,030)
</TABLE>
Certain income and expense items are accounted for differently for
financial reporting purposes than for income tax purposes. Provisions for
deferred taxes are made in recognition of these temporary differences and
are measured using the income tax rates applicable to the period when the
differences are expected to be realized or settled.
There were net deferred tax assets of $454,129 and $618,684 as of
December 31, 1998 and December 31, 1997, respectively. The major temporary
differences which created deferred tax assets and liabilities are as
follows:
<TABLE>
<CAPTION>
1998 1997
<S> <C> <C>
Unrealized Gain on Securities
FASB 115 Adjustment $(44,110) $ 29,441
Allowance for Loan Loss 19,573 119,303
Accumulated Depreciation (114,456) (123,455)
Other Real Estate 30,034 169,619
Deferred Gain on sale of Other Real Estate 166,852 -
Accruals not Deductible Until Paid 53,086 126,435
Net Operating Loss and Tax Credit Carryforward 262,145 237,573
Contributions Carryforward 13,005 8,768
Accrued Litigation Settlement 68,000 51,000
$454,129 $ 618,684
</TABLE>
The net operating loss carryforwards of $72,269 and $578,692 expire in
the years 2013 and 2012, respectively.
<PAGE>
BOL BANCSHARES, INC. & SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE T
CONDENSED FINANCIAL INFORMATION - PARENT COMPANY ONLY
BOL BANCSHARES, INC.
CONDENSED BALANCE SHEETS
<TABLE>
<CAPTION>
December 31,
1998 1997
<S> <C> <C>
ASSETS
Due from Banks $599,241 $586,622
Due from Subsidiary 118,738 -
Securities Available-for-Sale, at Fair Value 271,400 -
Other Assets 31,959 921,438
Investment in Bank of Louisiana 6,905,656 7,168,026
$7,926,994 $8,676,086
LIABILITIES AND STOCKHOLDERS' EQUITY
Notes Payable $2,272,386 $2,283,508
Accrued Expenses 10,000 -
Due to Subsidiary - 750,130
Accrued Interest 390,673 362,613
Shareholders' Equity 5,253,935 5,279,835
$7,926,994 $8,676,086
</TABLE>
<PAGE>
BOL BANCSHARES, INC. & SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE T
CONDENSED FINANCIAL INFORMATION - PARENT COMPANY ONLY (Continued)
BOL BANCSHARES, INC.
STATEMENTS OF INCOME (LOSS)
<TABLE>
<CAPTION>
December 31,
1998 1997 1996
<S> <C> <C> <C>
INCOME
Dividend Income - Bank of $387,500 $0 $0
Louisiana
Interest Income 18,223 19,753 26,273
Miscellaneous Income - 3,327 19
405,723 23,080 26,292
EXPENSES
Interest 211,837 219,357 223,515
Other Expenses 35,218 23,951 15,427
247,055 243,308 238,942
INCOME (LOSS) BEFORE EQUITY
IN UNDISTRIBUTED EARNINGS
(LOSS) OF SUBSIDIARY 158,668 (220,228) (212,650)
Equity in Undistributed
Earnings (Loss) of Subsidiary (262,939) (1,829,936) 46,760
INCOME (LOSS) BEFORE
INCOME TAX BENEFIT (104,271) (2,050,164) (165,890)
INCOME TAX BENEFIT 77,803 74,878 72,301
NET INCOME (LOSS) $(26,468) ($1,975,286) ($93,589)
</TABLE>
<PAGE>
BANK OF LOUISIANA
SUPPLEMENTARY INFORMATION
SCHEDULE I
BALANCE SHEETS
UNCONSOLIDATED
<TABLE>
<CAPTION>
ASSETS
December 31,
1998 1997
<S> <C> <C>
Cash and Due from Banks
Non Interest Bearing Balances and Cash $6,692,995 $7,734,005
Federal Funds Sold 26,950,000 21,150,000
Investment Securities
Securities Held-to-Maturity (Fair Value of
$4,514,374 in 1998 and $9,510,313 in 1997) 4,497,942 9,478,718
Securities Available-for-Sale, at Fair 20,000 1,088,663
Value
Loans: Less Allowance for Loan Losses of
$1,800,000 in 1998 and 1997 and Unearned
Discount of $215,256
in 1998 and $1,847 in 1997 59,741,831 55,819,114
Property, Equipment and Leasehold
Improvements (Net
of Depreciation and Amortization) 2,505,740 2,697,583
Other Real Estate 1,356,893 1,473,160
Other Assets 1,279,358 1,613,670
Deferred Taxes 522,741 618,684
Due from Parent - 801,953
Letters of Credit 84,052 113,532
Total Assets $103,651,552 $102,589,082
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES
Deposits
Non-Interest Bearing $36,943,605 $35,128,504
Interest Bearing 58,238,748 59,398,655
Other Liabilities 1,025,457 412,886
Letters of Credit Outstanding 84,052 113,532
Due to Parent 118,738 51,823
Accrued Litigation Settlement 200,000 150,000
Accrued Interest 135,296 165,656
Total Liabilities 96,745,896 95,421,056
STOCKHOLDERS' EQUITY
Common Stock - 143,000 Shares Issued and
Outstanding 1,430,000 1,430,000
Accumulated Other Comprehensive Income - (569)
Surplus 4,616,796 4,616,796
Retained Earnings 858,860 1,121,799
Total Stockholders' Equity 6,905,656 7,168,026
Total Liabilities and Stockholders' Equity $103,651,352
$102,589,082
</TABLE>
See independent auditor's report on supplementary information.
<PAGE>
BANK OF LOUISIANA
SUPPLEMENTARY INFORMATION
SCHEDULE II
STATEMENTS OF INCOME (LOSS)
UNCONSOLIDATED
<TABLE>
<CAPTION>
For The Years Ended
December 31,
1998 1997 1996
<S> <C> <C> <C>
INTEREST INCOME $9,813,783 $10,297,883 $12,326,563
INTEREST EXPENSE 1,793,067 1,908,988 1,996,013
Net Interest Income 8,020,716 8,388,895 10,330,550
PROVISION FOR LOAN LOSSES 1,085,625 3,630,273 2,039,779
Net Interest Income After Provision
For Loan Losses 6,936,373 4,758,622 8,290,771
OTHER INCOME
Service Charges on Deposit
Accounts 1,318,419 1,398,552 1,481,144
Other Non-Interest Income 930,992 1,130,109 958,777
Reversal of Litigation
Settlement - 390,000 -
Gain on Securities 201,799 15,860 -
2,451,210 2,934,521 2,439,921
OTHER EXPENSES
Salaries and Employee
Benefits 3,669,949 3,974,048 4,189,606
Occupancy Expense 1,956,172 1,937,416 1,848,469
Equity in Loss of
Unconsolidated Subsidiary - - -
Loss on Litigation 50,000 150,000 -
Other Non-Interest Expense 3,412,166 4,557,540 4,593,584
9,088,287 10,619,004 10,631,659
INCOME (LOSS) BEFORE
INCOME TAX EXPENSE (BENEFIT) 298,014 (2,925,861) 99,033
INCOME TAX EXPENSE (BENEFIT) 173,453 (1,095,925) 52,273
NET INCOME (LOSS) $124,561 ($1,829,936) $46,760
EARNINGS (LOSS) PER SHARE
OF COMMON STOCK $ .87 ($12.80) $0.33
</TABLE>
See independent auditor's report on supplementary information.
<PAGE>
BANK OF LOUISIANA
SUPPLEMENTARY
INFORMATION
SCHEDULE III
STATEMENTS OF CHANGES IN
STOCKHOLDERS' EQUITY
UNCONSOLIDATED
<TABLE>
<CAPTION>
Accumulated
Other
Common Comprehensive Retained
Stock Income Surplus Earnings Total
<S> <C> <C> <C> <C> <C>
BALANCE - December $1,430,000 $19,036 $4,616,796 $2,904,975 $8,970,807
31, 1995
Net Income for the Year - - - 46,760 46,760
1996
Other Comprehensive Income,
Net of Applicable Deferred
Income Taxes - (23,443) - - (23,443)
BALANCE - December $1,430,000 ($4,407) $4,616,796 $2,951,735 $8,994,124
31, 1996
Net Loss for the Year - - - (1,829,936) (1,829,936)
1997
Other Comprehensive Income,
Net of Applicable Deferred
Income Taxes - 3,838 - - 3,838
BALANCE - December $1,430,000 ($569) $4,616,796 $1,121,799 $7,168,026
31, 1997
Net Income for the Year - - - 124,561 124,561
1998
Cash dividends declared for
the Year ($2.71 per - - - (387,500) (387,500)
share)
Other Comprehensive Income,
Net of Applicable Deferred
Income Taxes - 569 - - 569
BALANCE - December $1,430,000 $0 $4,616,796 $ 858,860 $6,905,656
31, 1998
</TABLE>
See independent auditor's report on supplementary information.
