<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
Quarterly report pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
For the quarter ended March 31, 1996
Commission file number: 0-26350
ALLEGIANT BANCORP, INC.
(Exact name of registrant as specified in its charter)
Missouri 43-1519382
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
7801 Forsyth Boulevard
St. Louis, Missouri 63105
(Address of principal executive offices) (Zip code)
Registrant's telephone number, including area code: (314) 726-5000
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
On March 31, 1996, the registrant had 1,989,034 outstanding shares of Common
Stock, $.01 par value.
<PAGE> 2
ALLEGIANT BANCORP, INC.
FORM 10-QSB
<TABLE>
INDEX
<CAPTION>
Page
----
<S> <C>
PART I. FINANCIAL INFORMATION
ITEM 1. Financial Statements
Balance Sheets - March 31, 1996 and December 31, 1995 3
Statements of Income - Three Months Ended March 31, 1996 and 1995 4
Statements of Cash Flows - Three months ended March 31, 1996 and 1995 5
Notes to Financial Statements 6
ITEM 2. Management's Discussion and Analysis 7
PART II - OTHER INFORMATION
ITEM 6. Exhibits and Reports on Form 8-K 16
SIGNATURES 17
</TABLE>
- 2 -
<PAGE> 3
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
<TABLE>
ALLEGIANT BANCORP, INC.
CONSOLIDATED BALANCE SHEETS
<CAPTION>
March 31, December 31,
1996 1995
---------- --------------
(in thousands)
<S> <C> <C>
ASSETS:
- ------
Cash and due from banks $ 16,093 $ 5,483
Federal funds sold and
other overnight investments 3,860 14,200
Investment securities:
Available for sale (at estimated
market value) 20,133 28,000
Held to maturity (approximate market
value of $35,186,000 and
$45,042,000, respectively) 35,330 45,211
Loans 193,825 181,544
Less allowance for possible loan losses (2,257) (2,130)
-------- --------
Net loans 191,568 179,414
Bank premises and equipment 4,633 4,603
Accrued interest and other assets 2,882 2,684
Cost in excess of fair value of
net assets acquired 767 791
-------- --------
Total $275,266 $280,386
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY:
- ------------------------------------
Deposits:
Non-interest bearing $ 20,985 $ 21,966
Interest bearing 177,233 176,203
Certificates of deposit of $100,000 28,816 33,140
-------- --------
Total deposits 227,034 231,309
-------- --------
Short-term borrowings 12,664 14,108
Long-term debt 19,693 19,719
Accrued expenses and other liabilities 1,500 1,312
-------- --------
Total liabilities 260,891 266,448
Commitments and contingencies:
Stockholders' equity:
Common Stock, $.01 par value - shares
authorized, 7,800,000;
issued and 1,989,034 outstanding for
both periods presented 20 18
Capital surplus 11,379 11,369
Retained earnings 3,065 2,642
Net unrealized depreciation on securities
available for sale (89) (91)
-------- --------
Total stockholders' equity 14,375 13,938
-------- --------
Total liabilities and stockholders' equity $275,266 $280,386
======== ========
See notes to consolidated financial statements.
</TABLE>
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<PAGE> 4
<TABLE>
ALLEGIANT BANCORP, INC.
CONSOLIDATED STATEMENTS OF INCOME
<CAPTION>
Three Months Ended
March 31,
--------------------
1996 1995
-------- --------
(in thousands, except per share data)
<S> <C> <C>
Interest income:
Interest and fees on loans $ 4,720 $ 3,549
Investment securities 938 561
Federal funds sold and overnight
investments 68 39
--------- ---------
Total interest income 5,726 4,149
--------- ---------
Interest expense:
Interest on deposits 2,825 1,693
Interest on short-term borrowings 212 241
Interest on long-term debt 388 122
--------- ---------
Total interest expense 3,425 2,056
-------- ---------
Net interest income 2,301 2,093
Provision for possible loan losses 180 262
--------- ---------
Net interest income after
provision for possible loan losses 2,121 1,831
--------- ---------
Other income:
Service charges and other fees 174 119
--------- ---------
Total other income 174 119
--------- ---------
Other expenses:
Salaries and employee benefits 805 657
Operating expenses 707 794
--------- ---------
Total other expenses 1,512 1,451
--------- ---------
Income before income taxes 783 499
Provision for income taxes 313 194
--------- ---------
Net income $ 470 $ 305
========= =========
Per share data:
Primary:
Average adjusted Common Shares
outstanding 2,156,758 1,480,046
Net income $ .22 $ .21
Fully diluted:
Average adjusted Common Shares
outstanding 2,156,758 1,480,046
Net income $ .22 $ .21
See notes to consolidated financial statements.
</TABLE>
- 4 -
<PAGE> 5
<TABLE>
ALLEGIANT BANCORP, INC.
CONSOLIDATED STATEMENTS
OF CASH FLOWS
<CAPTION>
Three Months Ended
March 31,
-------------------------
1996 1995
-------- --------
(in thousands)
<S> <C> <C>
OPERATING ACTIVITIES:
- --------------------
Net income $ 470 $ 305
Adjustments to reconcile net income to
net cash provided by operating activities:
Depreciation and amortization 163 119
Provision for loan losses 180 262
Loan recoveries 37 3
Deferred tax provision (92) (77)
Changes in assets and liabilities:
Accrued interest receivable and
Other assets (106) (670)
Other liabilities 188 218
------- --------
Cash provided by operating activities 840 160
------- --------
INVESTING ACTIVITIES:
- --------------------
Proceeds from maturities of securities held to maturity 27,031 50
Purchase of investment securities held to maturity (17,150) (11,666)
Proceeds from maturities of securities available for sale 38,089 --
Purchase of investments securities available for sale (30,224) (492)
Loans made to customers, net of repayments (12,371) (28,267)
Additions to premises and equipment (169) (126)
------- --------
Cash provided by (used in) investing activities 5,206 (40,501)
------- --------
FINANCING ACTIVITIES:
- --------------------
Net (decrease) increase in deposits (4,275) 38,681
Net proceeds from repurchase agreements (1,444) (6,292)
Proceeds from issuance of long-term debt -- 9,500
Retirement of long-term debt (26) --
Proceeds from issuance of Common Stock 7 45
Payment of dividends (38) (16)
------- --------
Cash (used in) provided by financing activities (5,776) 41,918
------- --------
Net increase in cash and cash equivalents 270 1,577
Cash and cash equivalents, beginning of period 19,683 5,778
------- --------
Cash and cash equivalents, end of period $19,953 $ 7,355
======= ========
See notes to consolidated financial statements.
</TABLE>
- 5 -
<PAGE> 6
ALLEGIANT BANCORP, INC.
NOTES TO FINANCIAL STATEMENTS
1. BASIS OF PRESENTATION
The accompanying consolidated financial statements include the
accounts of Allegiant Bancorp, Inc. (the "Company") and its
subsidiaries, Allegiant Bank, Allegiant State Bank (which was merged
into Allegiant Bank on January 27, 1995) (as used herein the "Bank"
refers to Allegiant Bank for periods subsequent to such merger and
to Allegiant Bank and Allegiant State Bank, collectively, prior to
such time) and Allegiant Mortgage Company (the "Mortgage Company").
The financial statements have been prepared in conformity with
generally accepted accounting principles and with general practice
within the banking industry. Significant intercompany transactions
and amounts have been eliminated.
The consolidated balance sheet at March 31, 1996, the
consolidated statements of income for the three months ended March
31, 1996 and 1995 and the consolidated statements of cash flows for
three months ended March 31, 1996 and 1995 are unaudited, but, in the
opinion of the Company, reflect all adjustments (consisting only of
normal recurring accruals) necessary for a fair presentation.
Reference is hereby made to the notes to consolidated financial
statements contained in the Company's Annual Report on Form 10-KSB
for the year ended December 31, 1995. The results of operations for
the three months ended March 31, 1996 are not necessarily indicative
of the results which may be obtained for the full year ending
December 31, 1996.
2. EARNINGS PER SHARE
Primary earnings per share is based on the average number of
common shares and common share equivalents outstanding during each
quarter with the elimination of interest and dividends paid on the
common share equivalents.
- 6 -
<PAGE> 7
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS
OVERVIEW
The Company is a registered bank holding company which owns all
of the capital stock of the Bank. The Bank provides personal and commercial
banking and related financial services from five locations in the St. Louis
Standard Metropolitan Statistical Area ("St. Louis SMSA"), the 16th largest
metropolitan area in the United States, and two locations in Northeast
Missouri. The Mortgage Company is a wholly-owned subsidiary of the Bank and
offers residential loans primarily to customers in the St. Louis market.
The Company was organized in May 1989 and acquired Allegiant
State Bank at that time. The Company acquired Allegiant Bank in 1990. In
November 1994, Allegiant Bank acquired the Mortgage Company. Effective
January 1995, Allegiant State Bank merged into Allegiant Bank.
FINANCIAL CONDITION
Summary
Net income for the quarter ended March 31, 1996 was $470,000, an
increase of $165,000 or 54% compared to the quarter ended March 31, 1995. On
a per share basis, net income increased 6% to $.22 for the three months ended
March 31, 1996 from $.21 for the same period in 1995. This lower percentage
change per share was due to the increased average number of shares
outstanding compared to the corresponding period in the previous year due to
the private placement of Common Stock. See "--Capital Management and
Resources."
At March 31, 1996, the Bank's total assets were $275.3 million, a
decrease of $5.1 million or 2% from the year ended December 31, 1995. This
decrease was primarily attributable to a $17.8 million decrease in investment
securities. A substantial portion of these securities were maturing short
term securities along with longer term callable securities that were put to
the Bank. A substantial portion of this decrease in investment securities
was offset by a $12.2 million increase in loans outstanding, which aggregated
$193.8 million at March 31, 1996 compared to $181.6 million at December 31,
1995. Cash balances at March 31, 1996 were $16.1 million versus $5.5 million
at December 31, 1995. This increase was due to securities maturing over the
last weekend in March. This increase is matched by a decrease of $10.3
million in Federal funds sold.
Corresponding to the decrease in assets for the three months
ended March 31, 1996, total liabilities decreased by $5.6 million. A
substantial portion of this decrease was represented by a $4.3 million
decrease in CD's over $100,000 as well as decreases in both demand accounts
and short-term borrowings. The decrease in short-term borrowings was due to
a prepayment of an advance from the Federal Home Loan Bank ("FHLB").
- 7 -
<PAGE> 8
Loans
Loans, the largest component of interest earning assets,
increased 7% during the first quarter of 1996. This increase was primarily
attributable to an 11% increase in commercial loans, increasing $4.4 million
to $45.0 million from $40.5 million at December 31, 1995. The next largest
component of this loan growth was in real estate loans, which increased $6.7
million or 5% during the first quarter of 1996.
The composition of the loan portfolio is summarized as follows:
<TABLE>
LENDING AND CREDIT MANAGEMENT<F1>
<CAPTION>
March 31, December 31, March 31,
1996 1995 1995
---------------------- ----------------------- ------------------------
Percent Percent Percent
of Total of Total of Total
Amount Loans Amount Loans Amount Loans
----------- -------- ---------- ---------- ---------- ------------
(in thousands)
<S> <C> <C> <C> <C> <C> <C>
Commercial, financial, agricultural
municipal and industrial
development $ 44,968 23.20% $ 40,518 22.32% $ 32,884 21.98%
Real estate construction 9,222 4.76 8,777 4.83 8,528 5.70
Real estate mortgage
one-to-four family 73,305 37.82 71,260 39.25 66,090 44.17
multi-family 57,464 29.65 52,795 29.08 35,235 23.55
Consumer and other 9,035 4.66 8,379 4.62 7,136 4.77
Less unearned income (169) (.09) (185) (0.10) (233) (0.16)
--------- ------- -------- ------- -------- -------
Total Loans 193,825 100.00% 181,544 100.00% $149,633 100.00%
========= ======= ======== ======= ======== =======
<FN>
<F1> The Bank had no outstanding foreign loans at the dates reported.
</TABLE>
- 8 -
<PAGE> 9
Investments
As previously discussed, aggregate investment securities
decreased $17.8 million or 24%, at March 31, 1996 compared to December 31,
1995. The most significant decrease occurred in U.S. government agency
securities, which decreased $16.3 million from $64.7 million at December 31,
1995, to $48.4 million at March 31, 1996. Of this decrease, $3.5 million was
attributable to securities being called and the majority of the remaining
amount was due to the maturity of short-term discount notes. The Bank
generally invests in these short-term (less than 90 days) discount notes in
order to fund new loans and large maturing deposits.
The book value of the investment securities portfolio is as follows:
<TABLE>
INVESTMENT SECURITIES PORTFOLIO
<CAPTION>
March 31, December 31, Dollar Percent
1996 1995 Change Change
--------- ------------ --------- -------
(in thousands)
<S> <C> <C> <C> <C>
United States Treasury securities $ 3,516 $ 5,017 (1,501) -29.92%
Obligations of United States government agencies 48,439 64,697 (16,258) -25.13%
Federal Home Loan Bank stock 2,698 2,645 53 2.00%
States and political subdivisions 880 930 (50) -5.38%
less unrealized loss on securities held
available for sale (139) (136) (3) 2.21%
Other 69 58 11 18.97%
-------- -------- --------
Total investment securities $ 55,463 $ 73,211 ($17,748) -24.24%
======== ======== ========
</TABLE>
- 9 -
<PAGE> 10
Deposits
During the first quarter of 1996, total deposits decreased 2%, or
$4.3 million to $227.0 million from $231.3 million at December 31, 1995.
This decrease was principally attributable to a 13% decrease in CD's over
$100,000, and a 13% decrease in savings accounts. The decrease in savings
accounts was due to the re-pricing of Allegiant Green savings accounts.
Management feels most of these customers moved their money to the higher
yielding money market accounts within the Bank. Aggregate money market
accounts increased $3.7 million, or 7%, mainly due to the deposit promotion
tied to the Allegiant Green money market account. The following table
summarizes deposit activity:
<TABLE>
DEPOSIT LIABILITY COMPOSITION
<CAPTION>
March 31, 1996 December 31, 1995
-------------------- --------------------
Percent Percent
of Total of Total Dollar Percent
Amount Deposits Amount Deposits Change Change
---------- --------- --------- -------- -------- -------
(in thousands)
<S> <C> <C> <C> <C> <C> <C>
Demand deposits $ 20,985 9.24 $ 21,966 9.50% (981) -4.47%
Now accounts 9,023 3.97 9,087 3.93 (64) -0.70%
Money market accounts 57,564 25.35 53,905 23.30 3,659 6.79%
Savings deposits 7,707 3.39 8,896 3.85 (1,189) -13.37%
Certificates of deposit 95,708 42.16 97,460 42.13 (1,752) -1.80%
Certificates of deposit
over $100,000 28,816 12.69 33,140 14.33 (4,324) -13.05%
IRA certificates 7,231 3.18 6,855 2.96 376 5.49%
--------- ------ --------- ------ --------
Total Deposits $ 227,034 100.00% $ 231,309 100.00% ($4,275) -1.85%
========= ====== ========= ====== ========
</TABLE>
Asset Quality
Non-performing assets increased to $449,000 at March 31, 1996, an
increase of 52% from $318,000 on December 31, 1995. The ratio of
non-preforming loans to total loans increased from 0.17% to 0.23%, for the
periods ended December 31, 1995 and March 31, 1996 respectively. These
increases were consistent with the Company's operations in the ordinary
course of business. The following table summarizes, for the periods
indicated, activity in the Bank's allowance for possible loan losses,
including amounts of loans charged off, amounts of recoveries and additions
to the allowance charged to operating expenses:
- 10 -
<PAGE> 11
<TABLE>
Summary of Loan Loss Experience and Related Information
<CAPTION>
Three Months Twelve Months Three Months
Ended Ended Ended
March 31, December 31, March 31,
1996 1995 1995
------------- -------------- ------------
(dollars in thousands)
<S> <C> <C> <C>
Allowance for possible loan losses
(beginning of period) $2,130 $1,455 1,455
Loans charged off:
Commercial, financial, agricultural,
municipal and industrial development (8) (183) (20)
Real estate construction -- -- --
Real estate mortgage (82) (82) --
Installment and consumer -- (58) --
Other loans -- -- --
----- ----- -----
Total loans (90) (302) (20)
----- ----- -----
Recoveries of loans previously charged off:
Commercial, financial, agricultural,
municipal and industrial development $ 35 $ 11 $ --
Real estate construction -- -- --
Real estate mortgage -- -- --
Installment and consumer 2 10 3
Other loans -- -- --
----- ----- -----
Total loans 37 21 3
----- ----- -----
Net loans charged off (53) (302) (17)
----- ----- -----
Provision for possible loan losses 180 977 262
----- ----- -----
Allowance for possible loan losses (end of period) $ 2,257 $2,130 $1,700
======= ====== ======
Loans outstanding:
Average $189,649 $158,503 134,539
End of period 193,825 181,544 149,640
Ratio of allowance for loan loss
to total loans outstanding
Average 1.19% 1.34% 1.26%
End of period 1.16% 1.17% 1.14%
Ratio of net charge-offs to average
loans outstanding 0.03% 0.19% 0.01%
Percent of categories to total end of period loans:
Commercial, financial, agricultural,
municipal and industrial development 23.20% 23.32% 21.98%
Real estate construction 4.76% 4.83% 5.70%
Real estate mortgage 37.82% 39.25% 44.17%
Installment and consumer 29.65% 29.08% 23.55%
Other loans 4.66% 4.62% 4.77%
Less unearned income -0.09% -0.10% -0.16%
------ ------ ------
Total loans 100.00% 100.00% 100.00%
====== ====== ======
</TABLE>
- 11 -
<PAGE> 12
RESULTS OF OPERATIONS
Net Interest Income
Net interest income before provision for loan losses totaled $2.3
million for the quarter ended March 31, 1996 versus $2.1 million for the same
period in 1995, an increase of 10%. This growth in net interest income
resulted from the increase in total loans and investment securities
outstanding. The Company also attributes a portion of this increase in net
interest income to the improved management of the Bank's investment securities
portfolio.
In a falling rate environment, the investment securities
portfolio was able to increase 40 basis points in annualized yield, from
5.18% to 5.58%, for the quarters ended March 31, 1995 and 1996, respectively.
In comparison, the annualized average yield for total loans decreased 60
basis points in the same period from 10.55% to 9.95%. See "--Distribution of
Average Assets, Liabilities and Shareholder's Equity and Interest Rates".
Net Interest Expense
Interest paid on deposit accounts contribute the largest portion
of total expense for the Bank. For the quarter ended March 31, total
interest expense was $3.4 million in 1996 and $2.1 million in 1995. This
reflected an increase of $1.4 million or 67%. The largest percentage
increase in interest expense resulted from an increase in long-term debt
outstanding. The average long-term debt outstanding totaled $19.7 million at
quarter end 1996 versus $11.6 million at March 31, 1995. This 70%
increase was attributable to an increase in FHLB borrowings.
The next largest component of the increase in interest expense
was resultant of the 31% growth in total deposits. Total deposits increased
from $173.6 million on March 31, 1995 to $227.0 million on March 31, 1996.
The increase in average aggregate balances coupled with an increased
annualized interest cost of 53 basis points over the same period in the
previous year resulted in the 68% increase in interest paid to depositors.
Net Interest Margin
Increases in total interest income for the quarter ended March
31, 1996 were offset in part by tightening spreads and increasing cost of
funds. As a result of these trends along with the growth in deposits and
competitive market pressures, the Company's net interest margin ended the
quarter down 57 basis points from 4.41% for the three months ended March 31,
1995 to 3.84% for the corresponding period in 1996. The tightening spreads
experienced by the Company are resultant of three factors, (i) a shift toward
the portfolioing of one-to-four family adjustable rate mortgages; (ii) an
extremely competitive market for retail deposit pricing; and (iii) volatile
interest rates.
The Bank has traded yield for increased security by increasing
its portfolio of one-to-four family adjustable rate mortgages. Management
prefers to hold one-to-four family adjustable rate mortgage loans due to the
lower credit risk associated with this type of loan, as well as the lower
interest rate risk resultant of the frequent periodic adjustments of the
mortgage coupon payments. When compared to the
- 12 -
<PAGE> 13
Bank's peers in other geographical regions, the St. Louis SMSA is substantially
more competitive with respect to consumer deposit pricing. The Company does
not foresee a change in this market condition in the near future. The falling
interest rate trend experienced for much of the first quarter of 1996 caused the
Company's earning assets to re-adjust more quickly than its interest bearing
deposits and both long and short-term borrowings.
Provision For Loan Losses
Consistent with the Bank's written loan policy, a reserve is set
aside to offset possible future loan losses. This reserve is provided on a
monthly basis at a rate that corresponds to the increase in loans
outstanding, along with the current status of the existing loan portfolio.
The Bank's total allowance for possible loan loss increased 6% from $2.1
million to $2.3 million on December 31, 1995 and March 31, 1996,
respectively. The majority of this increase was due to the provision of
$180,000 to reserve for possible loan losses. This provision represented a
decrease of $82,000 compared to the corresponding period in 1995. The
Company believes that the allowances for possible loan losses at March 31,
1996 were adequate.
Non-interest Income and Expense
Non-interest income for the first quarter of 1996 was $174,000
compared to $119,000 for the same period in 1995. This increase of $55,000,
or 47%, was due to both the increased number of deposit accounts and the
increase in service chargeable services offered to the Company's customers.
The Company expects that this trend will continue as new products are offered
to its customers. New products that the Bank intends to offer in 1996
include: home equity lines of credit, investment annuities, debit cards,
free checking, overdraft lines of credit, PC home banking and the Bank plans
to enhance its "home page" on the Internet, which began operating in
1995.
Total non-interest expense increased only $61,000 or 4% to $1.5
million for the three months ended March 31, 1996 from $1.4 million for the
corresponding period in 1995. This increase included a 23% increase in
salaries and employee benefits and a 11% decrease in other operating
expenses. The increase in salary and employee benefits resulted from the
addition of 15 full-time equivalent employees over the periods presented. As
of March 31, 1996, Allegiant Bank employed 95 full-time equivalent employees
compared to 80 full-time equivalent employees at March 31, 1995.
The decrease in other operating expenses during this period is
reflected in the efficiency ratio. The efficiency ratio improved to 61.09%
at March 31, 1996, down from 65.60% during the same period in 1995. This
improvement was achieved despite the increased expenses of opening the new
operations center and the South county branch (which is scheduled to open in
May) as compared to only the opening of Clayton in the first quarter of 1995.
Additionally, the efficiency ratio for the quarter ended March 31, 1996
improved 3.57% versus the 64.66% level for the twelve months ended December
31, 1995.
In addition to the Bank's increased efficiency, in 1995, the
Federal Deposit Insurance Corporation ("FDIC") announced that deposit
insurance premiums would be reduced to the base amount of $2,000 per year.
As a result, the Company's deposit insurance premiums expense fell
substantially.
- 13 -
<PAGE> 14
The following table shows the condensed average balance sheets
for the periods reported and the average yield for each category used to
calculate the net interest margin.
<TABLE>
DISTRIBUTION OF AVERAGE ASSETS, LIABILITIES AND SHAREHOLDERS' EQUITY AND INTEREST RATES
<CAPTION>
Three Months ended March 31,
--------------------------------------------------------------------------
1996 1995
--------------------------------- ---------------------------------
Average Int Earned/ Yield/ Average Int Earned/ Yield/
Balance Expense Rate<F1> Balance Expense Rate<F1>
--------------------------------- ---------------------------------
(in thousands)
<S> <C> <C> <C> <C> <C> <C>
Assets
Interest-earning assets:
Loans <F1> $189,649 $18,876 9.95% $134,539 $14,196 10.55%
Taxable investment securities 67,242 3,752 5.58% 43,329 2,244 5.18%
Federal Funds sold 4,935 272 5.51% 2,567 156 6.08%
-------- ------- -------- -------
Total interest earning assets 261,826 22,900 8.75% 180,435 16,596 9.20%
-------- ------- -------- -------
Non-interest-earning assets:
Cash and due from banks 7,113 5,616
Bank Premises and equipment 4,625 2,709
Other assets 3,857 2,903
Reserve for possible loan loss (2,195) (1,515)
-------- --------
Total assets $275,226 $190,148
======== ========
Liabilities and shareholders' equity
Interest bearing liabilities:
Money Market Accounts $ 57,711 $ 2,972 5.15% $ 15,752 $ 572 3.63%
NOW Accounts 9,115 224 2.46% 8,132 188 2.31%
Savings Deposits 7,779 280 3.60% 3,898 100 2.57%
Certificates of Deposit 96,876 5,784 5.97% 87,879 4,748 5.40%
Certificates of Deposit over $100,000 28,735 1,608 5.60% 17,561 948 5.40%
IRA Certificates 7,005 428 6.11% 4,507 216 4.79%
--------- ------- -------- -------
Total interest bearing deposits 207,221 11,296 5.45% 137,729 6,772 4.92%
-------- ------- -------- -------
Federal funds purchased, repurchase
agreements, and other short term
borrowings 14,196 848 5.97% 15,340 964 6.28%
L/T borrowings 19,714 708 6.59% 11,585 900 7.77%
-------- ------- -------- -------
Total interest bearing liabilities 241,131 12,852 6.33% 164,654 8,636 6.24%
-------- ------- -------- -------
Non-interest bearing liabilities:
Demand deposits 18,234 14,711
Other liabilities 1,679 2,141
Shareholders' equity 14,182 8,642
-------- --------
Total liabilities and
shareholders' equity $275,226 $190,148
======== ========
Net interest income $10,048 $ 7,960
======= =======
Net interest margin 3.84% 4.41%
===== =====
<FN>
- -----------------------------
<F1> Interest on non-accruing loans is not included for purposes of calculating yields which have been annualized.
</TABLE>
- 14 -
<PAGE> 15
Net Income
As a result of the operations for the first quarter of 1996, the
Company reported net income of $470,000, compared to net income of $305,000
for first quarter of 1995. As a result of a greater number of outstanding
shares because of the private placement of 510,000 shares of Common Stock in
June 1995, on a per share basis, net income was $.22 per share for the three
months ended March 31, 1996 and $.21 for the corresponding period in 1995,
despite substantially increased earnings in the 1996 period.
CAPITAL MANAGEMENT AND RESOURCES
The analysis of capital is dependent upon a number of factors
including asset quality, earnings strength, liquidity, economic conditions
and combinations thereof. The Federal Reserve Bank has issued standards for
measuring capital adequacy for bank holding companies. These standards are
designed to provide risk-responsive capital guidelines and to incorporate a
consistent framework for use by financial institutions. At this time, the
two primary criteria in effect are the risk-based capital guidelines and the
minimum capital to total assets or leverage ratio requirement.
In general the standards require banks and bank holding companies
to maintain capital based on "risk adjusted" assets so that categories of
assets with potentially higher credit risk will require more capital backing
than categories with lower credit risk. In addition, banks and bank holding
companies are required to maintain capital to support off-balance sheet
activities such as loan commitments.
The standards also classify total capital for this risk-based
measure into two tiers referred to as Tier 1 and Tier 2. For the Company,
Tier 1 capital includes total shareholders' equity less goodwill. Tier 2
capital is comprised of the reserve for loan and lease losses (within certain
limits), perpetual preferred stock not included in Tier 1, hybrid capital
instruments, term subordinated debt and intermediate-term preferred stock.
Bank holding companies are required to meet a minimum ratio of 8%
of qualifying total capital to risk-adjusted assets and a minimum ratio of 4%
of qualifying Tier 1 capital to risk-adjusted assets. Capital that qualifies
as Tier 2 capital is limited in amount to 100 percent of Tier 1 capital.
As of March 31, 1996, the Company's risked-based and Tier 1
capital ratios were 8.95% and 4.92%, respectively. Identical capital
standards apply to the Bank. As of March 31, 1996, the Bank's risked-based
capital and Tier 1 capital ratios were 13.82% and 8.01%, respectively.
The minimum acceptable ratio of Tier 1 capital to tangible
assets, or leverage ratio, has been established by the FRB at 3%. As of
March 31, 1996, the Company's leverage ratio was 5.73%.
LIQUIDITY
The Bank needs to maintain a level of liquidity which will
provide a readily available source of funds for new loans and meet loan
commitments and other obligations on a timely basis. Historically, the Bank
has been loan driven, which means that as loans have increased to between 80%
and 95% of
- 15 -
<PAGE> 16
deposits, the Bank has taken action to increase the level of core deposits.
This action generally involves the use of deposit promotions, paying premium
rates coupled with advertising to attract new customers to the Bank. Where
possible, the Bank has timed a deposit promotion to coincide with the opening
of a new office in order to achieve maximum growth in deposits. It has been
the Bank's experience that, over the long-term, the majority of deposits
raised through these promotions have remained at the Bank after the promotion
is over and so have provided a steadily growing base of core deposits at the
Bank. In addition, the steady flow of maturing securities provides a source
of liquidity.
Management anticipates continued loan demand in the Bank's market
area as bank consolidation continues and fewer middle market lenders serve
the area. In order to maintain the flexibility to fund this growth, the
Company intends to strengthen its equity capital position through retained
earnings and the issuance of debt and/or equity securities as deemed
advisable. In addition, the Company has entered into an agreement with the
Federal Home Loan Bank providing the Bank a credit facility secured by the
Bank's assets with current availability of $50.0 million of which $ 16.1
million was outstanding as of March 31, 1996. These capital resources will
provide the Bank the opportunity to further expand the loan portfolio with
the flexibility to increase deposits when conditions best match the Bank's
needs and resources.
PART II - OTHER INFORMATION
ITEM 6. Exhibits and Reports on Form 8-K
(a) Exhibits:
No. 27 Financial Data Schedule
(b) Reports on Form 8-K
None
- 16 -
<PAGE> 17
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.
ALLEGIANT BANCORP, INC.
(Registrant)
May 13, 1996 By: /s/ Shaun R. Hayes
----------------------------------
Shaun R. Hayes, President and
Principal Accounting Officer
<TABLE> <S> <C>
<ARTICLE> 9
<LEGEND>
This schedule contains summary financial information extracted from
1996 First Quarter Form 10-Q and is qualified in its entirety by
reference to such financial statements.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> MAR-31-1996
<CASH> 16,093
<INT-BEARING-DEPOSITS> 20,985
<FED-FUNDS-SOLD> 3,860
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 20,133
<INVESTMENTS-CARRYING> 35,330
<INVESTMENTS-MARKET> 35,186
<LOANS> 193,825
<ALLOWANCE> 2,257
<TOTAL-ASSETS> 275,266
<DEPOSITS> 227,034
<SHORT-TERM> 12,664
<LIABILITIES-OTHER> 1,500
<LONG-TERM> 19,693
0
0
<COMMON> 20
<OTHER-SE> 14,355
<TOTAL-LIABILITIES-AND-EQUITY> 14,375
<INTEREST-LOAN> 4,720
<INTEREST-INVEST> 938
<INTEREST-OTHER> 68
<INTEREST-TOTAL> 5,726
<INTEREST-DEPOSIT> 2,825
<INTEREST-EXPENSE> 3,425
<INTEREST-INCOME-NET> 2,301
<LOAN-LOSSES> 180
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 1,517
<INCOME-PRETAX> 783
<INCOME-PRE-EXTRAORDINARY> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 470
<EPS-PRIMARY> .22
<EPS-DILUTED> .22
<YIELD-ACTUAL> 8.75
<LOANS-NON> 398
<LOANS-PAST> 1,373
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 0 <F1>
<ALLOWANCE-OPEN> 2,130
<CHARGE-OFFS> 90
<RECOVERIES> 37
<ALLOWANCE-CLOSE> 53
<ALLOWANCE-DOMESTIC> 1,715
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 542
<FN>
<F1>Information only reported at fiscal year-end date.
</TABLE>
