<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
ACT OF 1934
For the quarterly period ended September 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 September 30, 1996 ----- 676,602
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EUFAULA BANCCORP, INC. AND SUBSIDIARIES
INDEX
<TABLE>
<CAPTION>
Part I. Page No.
<S> <C> <C>
Item 1. Financial Information
Consolidated Balance Sheet--September 30, 1996 3
Consolidated Statements of Income-Nine months 4
ended September 30, 1996 and 1995
Consolidated Statements of Cash Flows;
Nine Months ended September 30, 1996 and 1995 5
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 a vote 10
Item 6. Exhibits and reports on Form 8-K 10
</TABLE>
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<PAGE>
Item 1 - Part 1 - Financial Information
EUFAULA BANCCORP, INC. & SUBSIDIARIES
Consolidated Balance Sheet
September 30, l996
(unaudited)
(Dollars in Thousands)
<TABLE>
<CAPTION>
ASSETS
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<S> <C>
Cash & Due from Banks $ 5,116
Interest bearing deposits in banks 250
Investment Securities:
Held to maturity 9,928
Available for Sale at est. market value 27,076
Federal Funds Sold 900
Loans 50,895
Less Allowance for loan losses 657
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50,238
Premises & Equipment, Net 2,332
Intangible Assets 1,568
Other Assets 3,167
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TOTAL ASSETS $100,575
LIABILITIES & STOCKHOLDERS' EQUITY
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Deposits:
Non interest-bearing demand $ 18,506
Interest-bearing Demand 26,551
Savings 5,374
Time Deposits 37,116
TOTAL DEPOSITS $ 87,547
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Federal Funds Purchased 1,910
Other Liabilities 947
TOTAL LIABILITIES $ 90,404
STOCKHOLDERS' EQUITY
Common Stock, par value $1 2,000,000
shares authorized: 676,602 shares issued 677
Surplus 909
Retained Earnings 8,920
unrealized gain (loss) on investments (335)
Total Equity $ 10,171
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY $100,575
</TABLE>
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<PAGE>
CONSOLIDATED STATEMENTS OF INCOME
Nine Months Ended September 30, l996 and September 30, l995
(unaudited)
(Dollars in Thousands, except per share amounts)
<TABLE>
<CAPTION>
1996 1995
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<S> <C> <C>
Interest Income
Interest & fees on loans $ 3,781 $ 3,560
Interest on Federal Funds Sold 87 74
Interest on interest-bearing deposits 10 19
Interest on taxable securities 1,332 1,112
Interest on not-taxable securities 356 371
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$ 5,566 $ 5,136
Interest Expense
Interests on deposits $ 2,188 $ 1,990
Interest on long term borrowing -0- 82
Interest on Federal Funds Purchased 21 33
Net interest income $ 3,357 $ 3,031
Provision for loan losses 68 59
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Net interest income after
provision for loan losses $ 3,289 $ 2,972
Other Operating Income
Service Charges on deposit accounts 526 471
Security Gains 23 4
Other Income 216 293
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765 768
Other operating expenses
Salaries & Other Employee Benefits $ 1,492 $ 1,406
Occupancy & Equipment expenses 375 342
Other operating expense 885 873
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$ 2,752 $ 2,621
Income before taxes $ 1,302 $ 1,119
Applicable Income Taxes 441 367
Net Income after Taxes $ 861 $ 752
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Per share of common stock based on
average number of shares outstanding
during period
Net Income 1.27 1.11
Average shares outstanding 676,602 676,602
Cash dividends per share of common stock .30 .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
Nine Months Ended September 30, l996 and September 30, l995
(Unaudited)
(Dollars in Thousands)
<TABLE>
<CAPTION>
1996 1995
CASH FLOWS FROM OPERATING ACTIVITIES
<S> <C> <C>
Net Income $ 861 $ 752
Adjustments to reconcile net income to net cash
provided by (used in) operating activities:
Depreciation & amortization 123 118
Provision for loan losses 68 40
Securities gains (23) (4)
(Increase) decrease in interest receivable (102) 203
Increase in interest payable 39 87
Other prepaids, deferrals and accruals, net (2186) 218
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Total adjustments (2081) 662
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Net cash provided by operating activities $ (1220) $ 1414
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CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sales & maturities of investment
securities $ 4,937 $ 4,588
Purchase of investment securities (7,961) (7,022)
Net decrease in Federal Funds sold (100) 1,025
Net (increase) decrease in bank-owned deposits -0- 451
Net increase in loans (2,456) (7,909)
Purchase of property & equipment (388) (79)
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Net cash provided by investing activities $(5,968) $(8,946)
CASH FLOWS FROM FINANCING ACTIVITIES
Net increase (decrease) in deposits $ 3,933 $10,100
Net increase (decrease) in Fed Funds purchased 1,360 200
Repayment of long term debt -0- (215)
Dividends paid (204) (115)
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Net cash used in financing activities $ 5,089 $ 9,970
Net increase (decrease) in cash and due from banks 2,099 2,438
Cash & due from banks, beginning of period 7,215 5,694
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Cash & due from banks, end of period $ 5,116 $ 8,132
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SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Cash paid during period for:
Interest $ 2,209 $ 2,072
</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 nine month period ended September
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 September 30, 1996 , the Company experienced an increase of 5% in total
assets as compared to September 30, 1995. This increase is a result of a 4.7%
increase in deposits. Loans growth was 3.2% for the 12 month period as a
result of an effort to increase total loans.
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 $335,000.00 less than amortized cost at September 30, 1996.
LIQUIDITY
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As of September 30, 1996, the liquidity ratio was 35.38 %. 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 5% from September of 1995 to
September 1996 with total assets outstanding as of month end September 1996 of
$100,575,000. Within the assets category investments increased 14.3% to
$37,257,000. Net loans increased from $48,671,000 to $50,237,000 an increase of
3.2% and goodwill decreased from $1,647,000 to $1,568,000 a decrease of 5%.
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 4.7% from $83,612,000 to $87,546,000, this comes as a
result of growth not only in Eufaula but also in Walton County. Capital is up
to $10,172,000 an increase of 5.7% over the $9,618,000 at the end of September
1995. Profits at the holding company level increased to $861,000 or 14.5% over
the third quarter of 1995. Total income of $6,356,000 is 7.6% over the
$5,904,000 for the end of the third quarter of 1995. Interest income was up
6.3% to $5,460,000.
Total interest expense was up 4.5% from September of 1995 to $2,201,000.
Salaries and benefits were up 5.9%, real estate expense down 9.6% and other
operating expenses up 12%. Net income after taxes at $861,000 for September
1996 equates to 14.5% increase over the $752,000 net profit figure for September
1995.
Earnings per share of stock at the holding company level are $1.27 or 14.4%
above the September 1995 figure of $1.11 per share. The book value is up from
$14.22 to $15.03 and PE ratio has increased from 8.78% to 11.76% since last
year. Capital continues to be strong at 10.12% and the holding company is in
position to do at least as well as last year. If the next quarter is 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: 10-28-96 EUFAULA BANCCORP, INC.
__________________
BY: /s/ Greg Faison
_______________________
Greg Faison, President
BY: /s/ Gloria A. Hagler
__________________________________
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> 9-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-01-1996
<PERIOD-END> SEP-30-1996
<CASH> 5,116
<INT-BEARING-DEPOSITS> 250
<FED-FUNDS-SOLD> 900
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 27,076
<INVESTMENTS-CARRYING> 9,928
<INVESTMENTS-MARKET> 0
<LOANS> 50,895
<ALLOWANCE> 657
<TOTAL-ASSETS> 100,575
<DEPOSITS> 87,547
<SHORT-TERM> 0
<LIABILITIES-OTHER> 947
<LONG-TERM> 0
0
0
<COMMON> 677
<OTHER-SE> 9,494
<TOTAL-LIABILITIES-AND-EQUITY> 100,575
<INTEREST-LOAN> 3,781
<INTEREST-INVEST> 1,688
<INTEREST-OTHER> 97
<INTEREST-TOTAL> 5,566
<INTEREST-DEPOSIT> 2,188
<INTEREST-EXPENSE> 2,209
<INTEREST-INCOME-NET> 3,357
<LOAN-LOSSES> 68
<SECURITIES-GAINS> 23
<EXPENSE-OTHER> 2,752
<INCOME-PRETAX> 1,302
<INCOME-PRE-EXTRAORDINARY> 1,302
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 861
<EPS-PRIMARY> 1.273
<EPS-DILUTED> 1.273
<YIELD-ACTUAL> 7.75
<LOANS-NON> 3
<LOANS-PAST> 12
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 288
<ALLOWANCE-OPEN> 605
<CHARGE-OFFS> 26
<RECOVERIES> 13
<ALLOWANCE-CLOSE> 657
<ALLOWANCE-DOMESTIC> 657
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
