<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 March 31, 1996
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[ ] TRANSITION REPORT UNDER SECTION 13 OR 15 (d) OF THE EXCHANGE ACT
For the transition period from to
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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 March 31, 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--March 31, 1996 3
Consolidated Statements of Income-Three months 4
ended March 31, 1996 and 1995
Consolidated Statements of Cash Flows; 5
Three Months ended March 31, 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 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
March 31, l996
(unaudited)
(Dollars in Thousands)
<TABLE>
<CAPTION>
ASSETS
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<S> <C>
Cash & Due from Banks $ 5,144
Interest bearing deposits in banks 250
Investment Securities:
Held to maturity 9,872
Available for Sale at est. market value 26,274
Federal Funds Sold 2,375
Loans 49,349
Less Allowance for loan losses 618
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48,731
Premises & Equipment, Net 2,167
Intangible Assets 1,608
Other Assets 1,377
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TOTAL ASSETS $97,798
</TABLE>
LIABILITIES & STOCKHOLDERS' EQUITY
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<TABLE>
<CAPTION>
Deposits:
<S> <C>
Non interest-bearing demand $18,028
Interest-bearing Demand 26,956
Savings 6,894
Time Dep 34,851
TOTAL DEPOSITS $86,729
Federal Funds Purchased 225
Other Liabilities 889
TOTAL LIABILITIES $87,843
STOCKHOLDERS' EQUITY
Common Stock, par value $1. 2,000,000
shares authorized: 676,602 shares issued 677
Surplus 909
Retained Earnings 8,464
unrealized gain (loss) on investments (95)
Total Equity $ 9,955
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY $97,798
</TABLE>
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<PAGE>
CONSOLIDATED STATEMENTS OF INCOME
Three Months Ended March 31, l996 and March 31, l995
(unaudited)
(Dollars in Thousands, except per share amounts)
<TABLE>
<CAPTION>
Interest Income 1996 1995
<S> <C> <C>
Interest & fees on loans $ 1,210 $ 1,066
Interest on Federal Funds Sold 33 31
Interest on interest-bearing deposits 4 7
Interest on taxable securities 417 350
Interest on not-taxable securities 118 124
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$ 1,782 $ 1,578
Interest Expense
Interests on deposits $ 726 $ 597
Interest on long term borrowing -0- 29
Interest on Federal Funds Purchased 2 4
Net interest income $ 1,054 $ 948
Provision for loan losses 23 14
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Net interest income after
provision for loan losses $ 1,031 $ 934
Other Operating Income
Service Charges on deposit accounts 172 148
Security Gains 5 2
Other Income 78 103
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255 253
Other operating expenses
Salaries & Other Employee Benefits $ 496 $ 457
Occupancy & Equipment expenses 121 108
Other operating expense 280 327
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$ 897 $ 892
Income before taxes $ 389 $ 295
Applicable Income Taxes 120 91
Net Income after Taxes $ 269 $ 204
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Per share of common stock based on
average number of shares outstanding
during period
Net Income .40 .30
Average shares outstanding 676,602 676,602
Cash dividends per share of common stock .10 -0-
</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
Three Months Ended March 31, l996 and March 31, l995
(Unaudited)
(Dollars in Thousands)
<TABLE>
<CAPTION>
1996 1995
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<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income $ 269 $ 204
Adjustments to reconcile net income to net cash
provided by (used in) operating activities:
Depreciation & amortization 41 66
Provision for loan losses 23 14
Securities gains (5) (2)
(Increase) decrease in interest receivable 144 ( 43)
Increase in interest payable 2 17
Other prepaids, deferrals and accruals, net (463) 201
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Total adjustments (258) 253
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Net cash provided by operating activities $ 11 $ 457
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CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sales & maturities of investment
securities $ (84) $ 4741
Purchase of investment securities (2,100) (6,603)
Net decrease in Federal Funds sold (1,575) 700
Net (increase) decrease in bank-owned deposits -0- 201
Net increase in loans (904) (3,963)
Purchase of property & equipment (141) (90)
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Net cash provided by investing activities $(4,804) $(5,014)
CASH FLOWS FROM FINANCING ACTIVITIES
Net increase (decrease) in deposits $ 3,115 $ 4,494
Net increase (decrease) in Fed Funds purchased (325) 75
Repayment of long term debt -0- (72)
Dividends paid (68) -0-
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Net cash used in financing activities $ 2,722 $ 4,497
Net increase (decrease) in cash and due from banks (2,071) (60)
Cash & due from banks, beginning of period 7,215 5,694
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Cash & due from banks, end of period $ 5,144 $ 5,634
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SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Cash paid during period for:
Interest $ 753 $ 626
</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 three month period ended March
31, 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 March 31, 1996 , the Company experienced an increase of 9.3% in total
assets as compared to March 31, 1995. This increase is a result of a 11%
increase in deposits. Loan growth was 8.9% 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 $95,000.00 less than amortized cost at March 31, 1996.
LIQUIDITY
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As of March 31, 1996, the liquidity ratio was 40.33%. 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 9.3% from March of 1995 to March
1996 with total assets outstanding as of month end March 1996 of $97,800,000.
Within the assets category investments increased 11.8 to $36,398,000. Net loans
increased from $44,751,000 to $48,732,000 and increase of 8.9% and goodwill
decreased from $1,686,000 to $1,608,000 a decrease of 4.9%. The decrease in
goodwill is a result of the write of the amount paid for First American Bank of
Walton County above the book value.
Total deposits increased 11.2% from $78,006,000 to $86,729,000, this comes as a
result of growth not only in Eufaula but also in Walton County. Capital is up
to $9,955,000 an increase of 9.7% over the $9,071,000 at the end of March 1995.
Profits at the holding company level increased to $269,000 or 32% over the first
quarter of 1995. Total income of $2,047,000 is up 11.8% over the $1,831,000 for
the end of the quarter of 1995. Interest income was up 8.2% to $1,708,000.
Total interest expense was up 15.2% from March of 1995 to $726,000. Salaries
and benefits were up 8.5%, real estate expense down 25.0% and other operating
expenses up 1.5%. Net income after taxes at $269,000 for March 1996 equates to
32% increase over the $204,000 net profit for March 1995.
Earnings per share of stock at the holding company level are $.40 or 32.0%
above the March 1995 figure of $.30 per share. The book value is up from $13.41
to $14.71 and our PE ratio has decreased from 11.45% to 8.28% since last year.
Capital continues to be strong at 10.18% and the holding company is in position
to do at least as well as last year. If the next three quarter are as good from
an earnings perspective we should end up making approximately the same as 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: April 30, 1996 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> 3-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-01-1996
<PERIOD-END> MAR-31-1996
<CASH> 5,144
<INT-BEARING-DEPOSITS> 250
<FED-FUNDS-SOLD> 2,375
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 26,274
<INVESTMENTS-CARRYING> 9,872
<INVESTMENTS-MARKET> 0
<LOANS> 49,349
<ALLOWANCE> 618
<TOTAL-ASSETS> 97,798
<DEPOSITS> 86,729
<SHORT-TERM> 225
<LIABILITIES-OTHER> 889
<LONG-TERM> 0
0
0
<COMMON> 677
<OTHER-SE> 9,278
<TOTAL-LIABILITIES-AND-EQUITY> 97,798
<INTEREST-LOAN> 1,210
<INTEREST-INVEST> 535
<INTEREST-OTHER> 37
<INTEREST-TOTAL> 1,782
<INTEREST-DEPOSIT> 726
<INTEREST-EXPENSE> 728
<INTEREST-INCOME-NET> 1,054
<LOAN-LOSSES> 23
<SECURITIES-GAINS> 5
<EXPENSE-OTHER> 897
<INCOME-PRETAX> 389
<INCOME-PRE-EXTRAORDINARY> 389
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 269
<EPS-PRIMARY> .398
<EPS-DILUTED> .398
<YIELD-ACTUAL> 8.15
<LOANS-NON> 729
<LOANS-PAST> 4
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 705
<ALLOWANCE-OPEN> 461
<CHARGE-OFFS> 11
<RECOVERIES> 1
<ALLOWANCE-CLOSE> 471
<ALLOWANCE-DOMESTIC> 471
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
