<PAGE>
U.S. SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-QSB
Mark one
[ X ] QUARTERLY REPORT UNDER SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE
CT OF 1934
For the quarterly period ended June 30, 1996
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[ ] TRANSITION REPORT UNDER SECTION 13 OR 15 (d) OF THE EXCHANGE ACT
For the transition period from ___________ to ___________
Commission File Number: 33-23062
Eufaula BancCorp, Inc.
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(Exact name of small business issuer as specified in its charter)
Delaware . 63-0989868 .
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(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification No.)
Post Office Box 1269, Eufaula, Alabama 36072
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Address of principal executive offices
(334) 687-3581
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(Issuer's Telephone Number)
N/A .
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(Former name, former address and former fiscal
year, if changed since last report)
Check whether the issuer (1) filed all reports required to filed by Section 13
or 15 (d) of the Exchange Act during the past 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 .
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APPLICABLE ONLY TO CORPORATE ISSUERS
State the number of shares outstanding of each of the issuer's classes of
common equity, as of common equity, as of June 30, 1996 ----- 676,602 -----
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EUFAULA BANCCORP, INC. AND SUBSIDIARIES
INDEX
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<CAPTION>
Part I. Page No.
<S> <C> <C>
Item 1. Financial Information
Consolidated Balance Sheet--June 30, 1996 3
Consolidated Statements of Income-Six months 4
ended June 30, 1996 and 1995
Consolidated Statements of Cash Flows; 5
Six Months ended June 30, 1996 and 1995
Note to Consolidated Financial Statements 6
Item 2. Management's discretion and analysis of financial
condition and results of operations. 7 & 8
Part II. Other Information
Item 4. Any matter submitted to the security holders for vote 10
Item 6. Exhibits and reports on Form 8-K 10
</TABLE>
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Item 1 - Part 1 - Financial Information
EUFAULA BANCCORP, INC. & SUBSIDIARIES
Consolidated Balance Sheet
June 30, l996
(unaudited)
(Dollars in Thousands)
<TABLE>
<CAPTION>
ASSETS
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<S> <C>
Cash & Due from Banks $ 9,196
Interest bearing deposits in banks 250
Investment Securities:
Held to maturity 9,944
Available for Sale at est. market value 26,742
Federal Funds Sold 2,075
Loans 49,169
Less Allowance for loan losses 640
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48,529
Premises & Equipment, Net 2,207
Intangible Assets 1,588
Other Assets 2,526
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TOTAL ASSETS $ 103,057
LIABILITIES & STOCKHOLDERS' EQUITY
- ----------------------------------
Deposits:
Non interest-bearing demand $ 23,318
Interest-bearing Demand 28,663
Savings 5,066
Time Deposits 35,312
TOTAL DEPOSITS $ 92,359
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Federal Funds Purchased 0
Other Liabilities 875
TOTAL LIABILITIES $ 93,234
STOCKHOLDERS' EQUITY
Common Stock, par value $1 2,000,000
shares authorized: 676,602 shares issued 677
Surplus 909
Retained Earnings 8,673
unrealized gain (loss) on investments ( 436)
Total Equity $ 9,823
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY $ 103,057
</TABLE>
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<PAGE>
CONSOLIDATED STATEMENTS OF INCOME
Three Months Ended June 30, l996 and June 30, l995
(unaudited)
(Dollars in Thousands, except per share amounts)
<TABLE>
<CAPTION>
<S> <C> <C>
Interest Income 1996 1995
Interest & fees on loans $ 2,486 $ 2,281
Interest on Federal Funds Sold 70 47
Interest on interest-bearing deposits 7 14
Interest on taxable securities 865 416
Interest on not-taxable securities 236 573
$ 3,664 $ 3,331
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Interest Expense
Interests on deposits $ 1,457 $ 1,277
Interest on long term borrowing -0- 56
Interest on Federal Funds Purchased 4 13
Net interest income $ 2,203 $ 1,985
Provision for loan losses 45 34
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Net interest income after
provision for loan losses $ 2,158 $ 1,951
Other Operating Income
Service Charges on deposit accounts 339 302
Security Gains 15 4
Other Income 155 191
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509 497
Other operating expenses
Salaries & Other Employee Benefits $ 1,004 $ 918
Occupancy & Equipment expenses 248 219
Other operating expense 602 605
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$ 1,854 $ 1,742
Income before taxes $ 813 $ 706
Applicable Income Taxes 267 229
Net Income after Taxes $ 546 $ 477
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Per share of common stock based on
average number of shares outstanding
during period
Net Income .81 .70
Average shares outstanding 676,602 676,602
Cash dividends per share of common stock .20 .17
</TABLE>
The accompanying note is an integral part of these consolidated financial
statements.
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<PAGE>
EUFAULA BANCCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOW
Six Months Ended June30, l996 and June 30, l995
(Unaudited)
(Dollars in Thousands)
<TABLE>
<CAPTION>
<S> <C> <C>
1996 1995
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CASH FLOWS FROM OPERATING ACTIVITIES
Net Income $ 546 $ 477
Adjustments to reconcile net income to net cash
provided by (used in) operating activities:
Depreciation & amortization 82 79
Provision for loan losses 45 34
Securities gains (15) (4)
(Increase) decrease in interest receivable 35 (182)
Increase in interest payable 2 82
Other prepaids, deferrals and accruals, net (1,838) 56
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Total adjustments (1,689) 65
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Net cash provided by operating activities $(1,143) $ 542
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CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sales & maturities of investment
securities $ 2,357 $ 5,400
Purchase of investment securities (5,071) (6,603)
Net decrease in Federal Funds sold (1,275) 1,300
Net (increase) decrease in bank-owned deposits -0- 451
Net increase in loans (724) (8,134)
Purchase of property & equipment (222) (77)
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Net cash provided by investing activities $(4,935) $(7,663)
CASH FLOWS FROM FINANCING ACTIVITIES
Net increase (decrease) in deposits $ 8,745 $ 6,350
Net increase (decrease) in Fed Funds purchased (550) 1,225
Repayment of long term debt -0- (143)
Dividends paid (136) (115)
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Net cash used in financing activities $ 8,059 $ 7,317
Net increase (decrease) in cash and due from banks 1,981 196
Cash & due from banks, beginning of period 7,215 5,694
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Cash & due from banks, end of period $ 9,196 $ 5,890
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SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Cash paid during period for:
Interest $ -0- $ 1,346
</TABLE>
The accompanying note is an integral part of these consolidated financial
statements.
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<PAGE>
EUFAULA BANCCORP, INC. AND SUBSIDIARIES
NOTE TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
Note 1. Basis of Presentation
The financial information included here is unaudited; however, such
information reflects all adjustments (consisting solely of normal
recurring adjustments) which are, in the opinion of management,
necessary for a fair statement of results for the interim periods.
The results of operations for the six month period ended June 30,
l996, are not necessarily indicative of the results to be expected
for the full year.
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<PAGE>
EUFAULA BANCCORP, INC. AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
The following is management's discussion and analysis of certain significant
factors which have affected the Company's financial position and operating
results during the periods included in the accompanying consolidated financial
statements.
FINANCIAL CONDITION
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As of June 30, 1996, the Company experienced an increase of 10.9% in total
assets as compared to June 30, 1995. This increase is a result of a 15.6%
increase in deposits. Loans decreased .8% for the 12 month period.
On January 1, 1994, the Company adopted Statement of Financial Account Standard
("SFAS") no. 115, "Accounting for certain investments in debt and equity
securities." The Company classified approximately $20 million of its security
portfolio as available for sale. In accordance with SFAS No. 115, those
securities are being carried at market value which was, with tax effect,
approximately $436,000.00 less than amortized cost at June 30, 1996.
LIQUIDITY
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As of June 30, 1996, the liquidity ratio was 36.12%. Liquidity is measured by
the ratio of net cash, short-term and marketable securities to net deposits and
short-term liabilities. Management believes that this ratio is more than
adequate to meet the liquidity needs of the Bank.
CAPITAL
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Both the leverage capital ratio and the risk-based capital ratio are well above
the minimum requirements.
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<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF
FINANCIAL CONDITION AND RESULTS OF OPERATION
Eufaula BancCorp, Inc.'s total assets increase 10.9% from June of 1995 to June
1996 with total assets outstanding as of month end June 1996 of $103,057,000.
Within the assets category investments increased 15.8% to $36,936,000. Net
loans decreased from $48,902,000 to $48,531,000 a decrease of .8% and goodwill
decreased from $1,687,000 to $1,588,000 a decrease of 4.7%. The decrease in
goodwill is a result of the write down of the amount paid for First American
Bank of Walton County above the book value.
Total deposits increased 15.6% from $79,862,000 to $92,358,000, this comes as a
result of growth not only in Eufaula but also in Walton County. Capital is up
to $9,824,000 an increase of 3.7% over the $9,468,000 at the end of June 1995.
Profits at the holding company level increased to $546,000 or 14.5% over the
second quarter of 1995. Total income of $4,191,000 is 9.5% over the $3,828,000
for the end of the second quarter of 1995. Interest income was up 7.9% to
$3,664,000.
Total interest expense was up 8.3% from June of 1995 to $1,461,000. Salaries
and benefits were up 9.1%, real estate expense down 9.5% and other operating
expenses up 10.7%. Net income after taxes at $546,000 for June 1996 equates to
14.5% increase over the $477,000 net profit figure for June 1995.
Earnings per share of stock at the holding company level are $.81 or 15.7%
above the June 1995 figure of $.70 per share. The book value is up from $13.99
to $14.52 and PE ratio has increased from 9.64% to 11.49% since last year.
Capital continues to be strong at 9.53% and the holding company is in position
to do at least as well as last year. If the next two quarters are as good from
an earnings perspective we should end up making slightly more than we did last
year.
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<PAGE>
SIGNATURES
In accordance with the requirements of the Exchange Act, the Registrant caused
this report to be signed on its behalf by the undersigned, thereunto duly
authorized.
DATE: 7-22-96 EUFAULA BANCCORP, INC.
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BY: /s/ Greg Faison
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Greg Faison, President
BY: /s/ Gloria A. Hagler
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Gloria A. Hagler, Vice President &
Secretary/Treasurer
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<PAGE>
PART II - OTHER INFORMATION
Item 4. Any matter submitted to the security holders for a vote.
The following items were brought before the Eufaula BancCorp, Inc.
Shareholders at their last meeting held on April 9, 1996, for a vote and
were unanimously approved:
1. Election of Greg Faison, John R. Mills, and Jack Farris, Jr., as
directors of the Holding Company for a two year period; and Janis
Biggers, Robert M. Dixon, J. J. Jaxon, Jr., and William D. Moorer,
Jr., as directors for a three year period.
2. Authorization of Greg Faison to vote the shares held in Eufaula Bank
& Trust Company and First American Bank by Eufaula BancCorp, Inc., at
their annual Shareholders' meeting.
3. Approval of Mauldin & Jenkins, CPA's as accountants for Eufaula
BancCorp, Inc.
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits.
NONE
(b) Report on Form 8-K.
NONE
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<TABLE> <S> <C>
<PAGE>
<ARTICLE> 9
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-01-1996
<PERIOD-END> JUN-30-1996
<CASH> 9,196
<INT-BEARING-DEPOSITS> 250
<FED-FUNDS-SOLD> 2,075
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 26,742
<INVESTMENTS-CARRYING> 9,944
<INVESTMENTS-MARKET> 0
<LOANS> 49,169
<ALLOWANCE> 640
<TOTAL-ASSETS> 103,057
<DEPOSITS> 92,359
<SHORT-TERM> 0
<LIABILITIES-OTHER> 875
<LONG-TERM> 0
0
0
<COMMON> 677
<OTHER-SE> 9,146
<TOTAL-LIABILITIES-AND-EQUITY> 103,057
<INTEREST-LOAN> 2,486
<INTEREST-INVEST> 1,101
<INTEREST-OTHER> 77
<INTEREST-TOTAL> 3,664
<INTEREST-DEPOSIT> 1,457
<INTEREST-EXPENSE> 1,461
<INTEREST-INCOME-NET> 2,203
<LOAN-LOSSES> 45
<SECURITIES-GAINS> 15
<EXPENSE-OTHER> 1,854
<INCOME-PRETAX> 813
<INCOME-PRE-EXTRAORDINARY> 813
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 546
<EPS-PRIMARY> .807
<EPS-DILUTED> .807
<YIELD-ACTUAL> 8.26
<LOANS-NON> 0
<LOANS-PAST> 6
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 459
<ALLOWANCE-OPEN> 605
<CHARGE-OFFS> 23
<RECOVERIES> 12
<ALLOWANCE-CLOSE> 640
<ALLOWANCE-DOMESTIC> 640
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
