Form 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
QUARTERLY REPORT UNDER SECTION 13 OF 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the Quarter ended March 31, 1996 Commission File Number: 0-19212
JEFFERSONVILLE BANCORP
(Exact name of Registrant as specified in its charter)
New York 22-2385448
------------------------------- ------------------------------------
(State or other jurisdiction of (I.R.S. Employer identification No.)
incorporation or organization)
P.O. Box 398, Jeffersonville, New York 12748
- -----------------------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
(914) 482-4000
Registrant's telephone number, including area code--------------------------
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 proceeding 12 months (or for such shorter period that the
Registrant was required to file such report(s), and (2) has been subject to
such filing requirements for the past 90 days.
Yes [ X ] No [ ]
Indicate the number if shares outstanding in each Issuer's classes of common
stock, as of the lates practicable date:
Number of Shares Outstanding
Class of Common Stock as of April 30, 1996
------------------------------- ------------------------------------
$0.50 par value 1,197,137
INDEX TO FORM 10-Q
Page
Part 1
Item 1 Consolidated Interim Financial Statements (Unaudited)
Consolidated Statements of Condition at
March 31, 1996 and December 31, 1995 1
Consolidated Statements of Income for the Three
Months ended March 31, 1996 and 1995 2
Consolidated Statements of Cash Flows for the Three
Months ended March 31, 1996 and 1995 3-4
Notes to Consolidated Interim Financial Statements 5
Item 2 Management's Discussion and Analysis of Financial
Condition and Results of Operation 6-7
Part 2
Item 1 Legal Proceedings NONE
Item 2 Changes in Securities NONE
Item 3 Defaults upon Senior Securities NONE
Item 4 Submission of Matters to a Vote of Security Holders NONE
Item 5 Other Information NONE
Item 6 Exhibits and Reports on Form 8-K NONE
Signatures 8
<TABLE>
Jeffersonville Bancorp
Consolidated Balance Sheets
<CAPTION>
March 31, December 31,
1996 1995
(Unaudited)
<S> <C> <C>
ASSETS
Cash and due from banks $ 5,470,000 $ 5,938,000
Federal funds sold 0 4,100,000
CASH AND CASH EQUIVALENTS 5,470,000 10,038,000
Investment securities available for sale, fair value 72,004,000 61,614,000
Investment securities held to maturity, fair value
$1,877,000 and $1,866,000 in 1996 and 1995 1,775,000 1,782,000
Loans, less allowance for loan losses of $1,616,000
and $1,675,000 in 1996 and 1995 110,442,000 109,288,000
Accrued interest receivable 1,459,000 1,180,000
Investments required by law, stock in Federal
Home Loan Bank 736,000 736,000
Premises and equipment 2,205,000 2,205,000
Other real estate owned 495,000 549,000
Other assets 1,523,000 1,511,000
TOTAL ASSETS $ 196,109,000 $ 188,903,000
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Deposits:
Demand deposits--non-interest bearing $ 20,603,000 $ 20,879,000
Now and super now deposits 28,947,000 28,457,000
Savings and insured money market deposits 56,275,000 51,563,000
Time deposits 62,055,000 63,285,000
TOTAL DEPOSITS 167,880,000 164,184,000
Short-term debt 3,973,000 197,000
Long-term debt 1,723,000 1,700,000
Accrued expenses and other liabilities 1,830,000 1,894,000
TOTAL LIABILITIES 175,406,000 167,975,000
Stockholders' equity:
Common stock; $.50 par value; 2,225,000 shares
authorized; 1,264,190 shares issued and
1,211,290 shares outstanding at March 31, 1996, and
1,284,450 shares issued and 1,231,550 outstanding
at December 31, 1995 632,000 642,000
Paid-in capital 1,033,000 1,450,000
Undivided profits 19,046,000 18,425,000
Net unrealized gain on securities available for
sale, net of tax 202,000 621,000
20,913,000 21,138,000
Less: treasury stock, 52,900 shares 210,000 210,000
TOTAL STOCKHOLDERS' EQUITY 20,703,000 20,928,000
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 196,109,000 $ 188,903,000
See accompanying notes to consolidated financial statements
</TABLE>
<TABLE>
Jeffersonville Bancorp
Consolidated Statements of Income
<CAPTION>
For the Three Months
Ended March 31,
1996 1995
(Unaudited) (Unaudited)
<S> <C> <C>
INTEREST INCOME
Loan interest and fees $ 2,558,000 $ 2,419,000
Federal funds sold 53,000 42,000
Investment securities and securities
available for sale
Taxable 658,000 763,000
Non-taxable 388,000 474,000
TOTAL INTEREST INCOME 3,657,000 3,698,000
INTEREST EXPENSE
Deposits 1,510,000 1,500,000
Federal funds purchased and
other short-term debt 3,000 --
Long-term debt 23,000 42,000
TOTAL INTEREST EXPENSE 1,536,000 1,542,000
NET INTEREST INCOME 2,121,000 2,156,000
Provision for loan losses 0 (40,000)
NET INTEREST INCOME AFTER
PROVISION FOR LOAN
LOSSES 2,121,000 2,116,000
OPERATING INCOME
Service charges 163,000 144,000
Other non-interest income 57,000 55,000
Loss on the sale of securities
available for sale, net 0 (6,000)
220,000 193,000
OPERATING EXPENSES
Salaries and wages 658,000 612,000
Employee benefits 190,000 202,000
Occupancy expense of bank premises 223,000 222,000
Other real estate expense, net 54,000 52,000
Other operating expense 393,000 438,000
1,518,000 1,526,000
Income before income taxes 823,000 783,000
Income taxes (201,000) (153,000)
NET INCOME $ 622,000 $ 630,000
Net income per share $ 0.51 $ 0.49
Shares outstanding 1,226,441 1,288,330
See accompanying notes to consolidated financial statements
</TABLE>
<TABLE>
Jeffersonville Bancorp
Consolidated Statement of Cash Flows
<CAPTION>
Three months ending March 31,
1996 1995
(unaudited) (unaudited)
<S> <C> <C>
OPERATING ACTIVITIES
Net income $ 622,000 $ 630,000
Adjustments to reconcile net income
to net cash provided by
operating activities:
Write down of other real estate owned 12,000 --
Provision for loan losses -- 40,000
Depreciation and amortization 75,000 92,000
Loss on sale of securities available
for sale, net -- (6,000)
Increase in accrued interest receivable (279,000) (90,000)
(Increase) decrease in other assets (12,000) 50,000
Increase in accrued expenses and
other liabilities 224,000 312,000
TOTAL ADJUSTMENTS 20,000 398,000
NET CASH PROVIDED BY
OPERATING ACTIVITIES 642,000 1,028,000
INVESTING ACTIVITIES
Proceeds from maturity and calls of securities
available for sale 5,323,000 2,155,000
Proceeds from sales of securities
available for sale -- 2,654,000
Purchase of securities available for sale (16,421,000) (7,211,000)
Proceeds from maturity and calls of investment
securities 180,000 124,000
Purchase of investment securities (173,000) --
Net increase in loans (1,206,000) (2,546,000)
Purchases of premises and equipment (75,000) (47,000)
Cash proceeds from sale of other real estate owned 94,000 196,000
NET CASH USED BY INVESTING
ACTIVITIES (12,278,000) (4,675,000)
FINANCING ACTIVITIES
Net increase in deposits accounts 3,696,000 4,321,000
Increase (decrease) in short-term debt 3,776,000 (373,000)
Purchase and retirement of common stock (427,000) --
Increase in long-term debt 23,000 --
NET CASH PROVIDED BY FINANCING ACTIVITIES 7,068,000 3,948,000
NET INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS (4,568,000) 301,000
Cash and cash equivalents at beginning of year 10,038,000 7,524,000
Cash and cash equivalents at end of year $ 5,470,000 $ 7,825,000
Supplemental disclosure of cash flow
information-cash paid during the year for:
Interest $ 1,515,000 $ 1,427,000
Taxes $ 145,000 $ 18,000
Supplemental schedule of noncash investing activities:
Change in net unrealized (gain) loss on securities
available for sale,net of tax $ (419,000) $ 2,107,000
Change in deferred tax (benefit) on unrealized
gain (loss) on securities available for sale $ (289,000) $ 865,000
Transfer of loans to other real estate owned $ 140,000 $ 142,000
See accompanying notes to consolidated interim financial statements
</TABLE>
JEFFERSONVILLE BANCORP
NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS
March 31, 1996
(Unaudited)
Part 1. Consolidated Interim Financial Statement Presentation
A. In the opinion of Management of Jeffersonville Bancorp, the
accompanying unaudited interim consolidated financial statements contains all
adjustments necessary to present the financial position as of March 31, 1996
and December 31, 1995, the Results of Operations for the three month periods
ending March 31, 1996 and 1995 and Cash Flows for the three month periods
ended March 31, 1996 and 1995. All adjustments are normal and recurring.
The accompanying statements should be read in conjunction with Jeffersonville
Bancorp's consolidated year-end financial statements, including notes
thereto, which are included in Jeffersonville Bancorp's 1995 Annual Report.
B. Earnings per share was calculated for the three month periods ending
March 31, 1996 and 1995 based on weighted average shares outstanding of
1,226,441 and 1,288,330, respectively.
Item 2: Management's discussion and analysis of Financial Conditions and
Results of Operations
A. Overview--Financial Conditions
During the period from December 31, 1995 to March 31, 1996, total assets
increased $7,206,000 or 3.81%. While growth during the period was flat,
several changes did occur within the balance sheet structure. Investment
securities available for sale increased $10,390,000 or 16.86%. This increase
was made possible by redeployment of short-term funds to improve the yield.
The funds were invested in tax exempt securities as well as short to
intermediate term taxable securities. Federal funds sold, a short-term
investment was reduced from $4,100,000 to zero as part of the funds
redeployment. Loans increased from $109,288,000, at year end 1995 to
$110,442,000 at March 31, 1996, an increase of $1,154,000 or 1.06%. Growth
was spread across all types of loans. The new Home Equity Loan product was
successfully launched during the first quarter of 1996 and accounted for
$242,000 of the increase in loans.
Deposits increased from $164,184,000 at December 31, 1995 to $167,880,000 at
March 31, 1996, an increase of $3,696,000 or 2.25%. Growth in deposits
occurred in savings and insured money market deposits as a change in the top
tier of the rate structure attracted large deposits mainly from municipal
depositors. Short-term debt increased $3,776,000 in response to short-term
liquidity needs.
Total shareholder equity at $20,703,000 at March 31, 1996 and $20,928,000 at
December 31, 1995 decreased $225,000 or 1.08%. This decrease was primarily
the result of two factors. First, on January 9, 1996 the Board of Directors
authorized the repurchase and retirement of 50,000 shares of Common Stock at
$21.00 per share. As of March 31, 1996, 20,260 shares have been repurchased
and retired with the resultant reduction in Common Stock and Paid In Capital
of $427,000. Second, the net unrealized gain on securities available for
sale decreased $419,000 from $621,000 at December 31, 1995 to $202,000 at
March 31, 1996. This reduction is brought about by changes in the securities
market.
B. Results of Operation
Net income for the first three months of 1996 was $622,000 compared to
$630,000 for the same period in 1995, a decrease of 1.27%. The Company's
annualized return on average assets was 1.28% compared to 1.30% in the same
period last year. The return on average shareholder's equity was 11.73% and
13.36% for the first three months of 1996 and 1995 respectively.
Net Interest Income
Tax equivalent interest income was virtually unchanged in the first three
months of 1996 compared to the same period in 1995. The yield on investment
securities decreased 36 basis points from 7.64% in 1995 to 7.28% in 1996.
While commercial loan rates turned upward, real estate mortgages loans
declined 13 basis points to 8.66% and installment loans declined 33 basis
points from 11.65% to 11.32%. The overall yield on interest earning assets
was down 11 basis points from 8.54% in 1995 to 8.43% in 1996.
Interest expense increased 40 basis points over the same period last year to
reach 4.12%, the result of higher market rates. The overall net interest
margin decreased 35 basis points from 5.42% in 1995 to 5.07% in 1996.
Provision for Loan Loss
The provision for loan losses reflects management's assessment of the risk
inherent in the loan portfolio, the general state of the economy and past
loan experience. The provision for loan loss was zero and $40,000 for the
three months ended March 31, 1996 and 1995 respectively. The net charge off
for the 1996 period was $12,000 compared to a net recovery of $42,000 the
prior year. Based on management analysis of the loan portfolio, management
believes the current level of the allowance is adequate.
Operating Income and Expense
Operating income for the first three months of 1996 increased $27,000 or
13.99% compared to the same period in 1995. The increase is attributed to
uniform collection of service charges and fees and absence of loss on the
sale of securities.
Increases in salaries and wages, and occupancy expense were offset by
reductions in employee benefits and other operating expense. The reduction
in other operating expense was mainly due to a decrease in the FDIC insurance
premium of $92,000. FDIC expense will also be lower in future accounting
periods, as a result of the decreased FDIC assessment rates.
SIGNATURES
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 authorize.
JEFFERSONVILLE BANCORP
Date: 5/3/96
/s/ K. Dwayne Rhodes
--------------------------------------
K. Dwayne Rhodes
Treasurer and Chief Accounting Officer
<TABLE> <S> <C>
<ARTICLE> 9
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> MAR-31-1996
<CASH> 5,470,000
<INT-BEARING-DEPOSITS> 0
<FED-FUNDS-SOLD> 0
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 72,004,000
<INVESTMENTS-CARRYING> 1,775,000
<INVESTMENTS-MARKET> 1,877,000
<LOANS> 112,058,000
<ALLOWANCE> 1,616,000
<TOTAL-ASSETS> 196,109,000
<DEPOSITS> 167,880,000
<SHORT-TERM> 3,973,000
<LIABILITIES-OTHER> 1,830,000
<LONG-TERM> 1,723,000
0
0
<COMMON> 632,000
<OTHER-SE> 20,281,000
<TOTAL-LIABILITIES-AND-EQUITY> 196,109,000
<INTEREST-LOAN> 2,558,000
<INTEREST-INVEST> 1,046,000
<INTEREST-OTHER> 53,000
<INTEREST-TOTAL> 3,657,000
<INTEREST-DEPOSIT> 1,510,000
<INTEREST-EXPENSE> 1,536,000
<INTEREST-INCOME-NET> 2,121,000
<LOAN-LOSSES> 0
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 1,518,000
<INCOME-PRETAX> 823,000
<INCOME-PRE-EXTRAORDINARY> 622,000
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 622,000
<EPS-PRIMARY> 0.51
<EPS-DILUTED> 0.51
<YIELD-ACTUAL> 4.64
<LOANS-NON> 2,920,000
<LOANS-PAST> 211,000
<LOANS-TROUBLED> 1,271,000
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 1,629,000
<CHARGE-OFFS> 42,000
<RECOVERIES> 29,000
<ALLOWANCE-CLOSE> 1,616,000
<ALLOWANCE-DOMESTIC> 470,000
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 1,146,000
</TABLE>
