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, 1997
( ) TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE
EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM
TO
Commission file number 000-21658
MINDEN BANCSHARES, INC.
(Exact name of small business issuer as specified in its charter)
Louisiana 72-0980704
(State or other jurisdiction of (IRS Employer Identification No.)
Incorporation or organization)
401 Main Street, Minden, Louisiana 71055
(Address of principal executive offices) (Zip Code)
(318) 377-4283
(Issuer's telephone number)
Check whether the issuer (1) has filed all reports required to
be filed by Section 13 or 15(d) of the Exchange Act of 1934 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
State the number of shares outstanding of each of the issuer's
classes of common equity, as of the latest practicable date:
280,511 as of October 31, 1997
Transitional Small Business Disclosure Format (Check one):
Yes No X
Page 1 of 25 Pages
Exhibit Index - 25
FORM 10-QSB
INDEX
PART I Page
Item 1. Financial Statements - Minden Bancshares,
Inc. and Subsidiary
Consolidated Balance Sheets as of
September 30, 1997 and December 31, 1996 4
Consolidated Statements of Income for
the Three Months and Nine Months
Ended September 30, 1997 and 1996 5
Consolidated Statements of Cash Flows
for the Nine Months ended September 30,
1997 and 1996 6
Notes to Consolidated Financial 7-8
Statements
Item 2. Management's Discussion and Analysis 9-24
PART II
Item 4. Submission of Matters to a Vote
of Security Holders 25
Item 6. Exhibits and Reports on Form 8-K 25
PART I - Financial Information
ITEM 1. FINANCIAL STATEMENTS
<TABLE>
<S> <C> <C>
MINDEN BANCSHARES, INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
SEPTEMBER 30, 1997 AND DECEMBER 31, 1996
(UNAUDITED)
September December
ASSETS 1997 1996
-------------------------------------------(in thousands, except per share data)
Cash and Cash Equivalents:
Cash and Due From Banks (Interest Bearing Balances -
$5,511 and $2,244 Respectively) $14,972 $14,907
Federal Funds Sold 11,500 8,500
--------- ---------
Total 26,472 23,407
--------- ---------
Securities:
Held to Maturity 15,293 14,784
Available for Sale 101,924 90,447
--------- ---------
Total 117,217 105,231
--------- ---------
Federal Reserve Bank and Federal Home Loan Bank Stock 1,389 1,205
Loans, Less Allowance for Loan Losses of $3,561 and $3,306 133,648 112,040
Accrued Interest Receivable 2,583 2,178
Bank Premises and Equipment 3,654 3,093
Real Estate Owned Other Than Bank Premises 255 217
Other Assets 4,321 2,661
--------- ---------
Total Assets $289,539 $250,032
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------------------------
Liabilities:
-----------
Deposits:
Demand $43,401 $38,197
Savings and Interest-Bearing Demand 79,469 78,440
Time 126,137 99,359
--------- ---------
Total Deposits 249,007 215,996
Securities Sold Under Repurchase Agreement 7,106 5,418
Accrued Interest Payable 978 860
Other Liabilities 1,063 132
Note Payable 90 90
--------- ---------
Total Liabilities 258,244 222,496
--------- ---------
Stockholders' Equity:
--------------------
Common Stock, par value $2.50 per share; 500,000
shares authorized; 309,816 shares issued;
280,511 and 280,549 shares outstanding 775 775
Additional Paid-In Capital 11,205 11,205
Undivided Profits 20,361 16,778
Net Unrealized Gain (Loss) on Available for Sale Securities 254 75
Treasury Stock-At Cost (1,300) (1,297)
--------- ---------
Total Stockholders' Equity 31,295 27,536
--------- ---------
Total Liabilities and Stockholders' Equity $289,539 $250,032
========= =========
See accompanying notes.
</TABLE>
<TABLE>
<S> <C> <C> <C> <C>
MINDEN BANCSHARES, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME
THREE MONTHS & NINE MONTHS ENDED SEPTEMBER 30, 1997 AND 1996
(UNAUDITED)
Three Months Nine Months
Ended September 30 Ended September 30
================== ===================
1997 1996 1997 1996
-------- -------- -------- ---------
Interest Income: (in thousands, except per share data)
---------------
Interest and Fees on Loans $3,265 $2,757 $9,084 $7,773
Securities:
Held to Maturity (non-taxable) 189 186 562 555
Available for Sale 1,481 1,248 4,081 3,506
Federal Funds Sold 298 227 754 762
Federal Reserve Stock and Other 20 16 60 51
Interest-Bearing Balances with Banks 72 17 154 76
-------- -------- -------- ---------
Total Interest Income 5,325 4,451 14,695 12,723
-------- -------- -------- ---------
Interest Expense:
----------------
Savings and Interest-Bearing Demand Deposits 574 542 1,692 1,570
Time Deposits 1,698 1,278 4,477 3,701
Securities Sold Under Repurchase Agreement and Other 92 80 234 224
-------- -------- -------- ---------
Total Interest Expense 2,364 1,900 6,403 5,495
-------- -------- -------- ---------
Net Interest Income 2,961 2,551 8,292 7,228
Provision for Loan Losses 0 0 0 0
-------- -------- -------- ---------
Net Interest Income After
Provision for Loan Losses 2,961 2,551 8,292 7,228
-------- -------- -------- ---------
Other Income:
------------
Service Charges 429 407 1,218 1,154
Trust Department Fees 2 3 9 38
Available for Sale Securities Gains 81 0 81 0
Insurance Commissions 81 79 240 219
Mortgage Loan Origination and Related Fees 82 0 100 0
Other Operating Income 74 67 219 205
-------- -------- -------- ---------
Total Other Income 749 556 1,867 1,616
-------- -------- -------- ---------
Operating Expenses:
------------------
Salaries and Employee Benefits 813 696 2,277 2,088
Occupancy Expense 194 99 391 387
Furniture and Equipment Expense 77 78 213 191
Goodwill Amortization 31 0 42 0
Advalorem Tax Shareholder Assessments 96 82 269 155
Other Operating Expenses 463 428 1,373 1,137
-------- -------- -------- ---------
Total Operating Expense 1,674 1,383 4,565 3,958
-------- -------- -------- ---------
Income Before Income Taxes 2,036 1,724 5,594 4,886
Income Taxes 688 536 1,800 1,510
-------- -------- -------- ---------
Net Income $1,348 $1,188 $3,794 $3,376
======== ======== ======== =========
Earnings Per Share $4.81 $4.23 $13.53 $12.03
======== ======== ======== =========
Dividends Declared Per Share $0.00 $0.00 $0.75 $0.65
======== ======== ======== =========
See accompanying notes.
</TABLE>
<TABLE>
<S> <C> <C>
MINDEN BANCSHARES, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS
NINE MONTHS ENDED SEPTEMBER 30, 1997 AND 1996
(UNAUDITED)
====================
1997 1996
--------- ---------
Cash Flows from Operating Activities: (in thousands, except per share data)
------------------------------------
Net Income $3,794 $3,376
Adjustments to Reconcile Net Income to Net Cash
Provided by Operating Activities:
Depreciation and Amortization 317 253
(Gain) Loss on Investment Securities (81) 0
(Gain) Loss on Sale of ORE (2) (18)
(Increase) Decrease in Accrued Interest Receivable (90) (37)
Acquisition of Goodwill (1,872) 0
(Increase) Decrease in Other Assets 63 (51)
Increase (Decrease) in Accrued Interest Payable 118 51
Increase (Decrease) in Other Liabilities 931 656
--------- ---------
Total Adjustments (616) 854
--------- ---------
Net Cash Provided (Used) by Operating Activities 3,178 4,230
Cash Flows from Investing Activities:
------------------------------------
Proceeds from Sales and Maturities of Investment Securities 66,666 42,219
Purchase of Investment Securities (78,243) (49,027)
Proceeds from Maturities of HTM Securities 411 461
Purchase of HTM Securities (920) (671)
Proceeds from Sales of ORE 6 190
Purchase of Property (565) 0
Purchase of Equipment (164) (78)
Net (Increase) Decrease in Loans (21,830) (14,439)
--------- ---------
Net Cash (Used) by Investing Activities (34,639) (21,345)
Cash Flows from Financing Activities:
------------------------------------
Dividends Paid (211) (182)
Net Increase (Decrease) in Demand Deposits 5,245 1,484
Net Increase (Decrease) in Savings and Interest-Bearing
Demand Deposits 1,029 3,814
Net Increase (Decrease) in Time Deposits 26,778 8,887
Net Increase (Decrease) in Securities Sold Under
Repurchase Agreements 1,688 (482)
Purchase of Treasury Stock (3) (9)
--------- ---------
Net Cash Provided by Financing Activities 34,526 13,512
--------- ---------
Net Increase (Decrease) in Cash and Cash Equivalents 3,065 (3,603)
Cash and Cash Equivalents at Beginning of Period 23,407 32,621
--------- ---------
Cash and Cash Equivalents at End of Period $26,472 $29,018
========= =========
Cash Payments: Interest $6,285 $5,444
========= =========
Income Taxes $1,702 $1,457
========= =========
See accompanying notes.
</TABLE>
MINDEN BANCSHARES, INC. AND SUBSIDIARY
Notes to Consolidated Financial Statements
(Unaudited)
September 30, 1997
1. Basis of Presentation
The unaudited interim consolidated financial statements of Minden
Bancshares, Inc. and subsidiary are prepared in accordance with generally
accepted accounting principles for interim financial information except as
described below:
On May 21, 1997, Minden Bank & Trust Company ("Minden Bank"), wholly
owned subsidiary of Minden Bancshares, Inc. ("the Company"),acquired all of
the outstanding shares of First Federal Savings Bank ("First Federal")in
Shreveport, Louisiana, and merged it into itself. First Federal's
stockholders' equity was $3,539,000 on the date of acquisition and Minden Bank
paid $5,411,000 resulting in $1,872,000 of goodwill being recorded. The
acquisition was recorded under the "Purchase Method" and the entries recording
the purchase are summarized as follows:
ASSETS ACQUIRED ($Thousands)
Cash and due from banks $ 2,931
Investment securities-AFS 17,622
Net loans 14,487
Facilities and equipment 232
Other assets 17
Goodwill 1,872
--------
Total Assets 37,161
--------
LIABILITIES ACQUIRED
Non-interest bearing deposits 148
Interest bearing deposits 31,505
--------
Total Deposits 31,653
Other liabilities 97
--------
Total Liabilities 31,750
--------
Net Cash Payment $ 5,411
========
In the opinion of management, all adjustments (consisting only of normal
recurring adjustments) necessary for a fair presentation of the financial
position and the results of operations for the interim periods presented have
been included.
2. Statement of Cash Flows
For purposes of the Consolidated Statements of Cash Flows, the Company
has defined cash equivalents as those amounts included in the balance sheets
captions Cash and due from banks and Federal funds sold. Cash flows from
loans and deposits of the Company's bank subsidiary are reported on a net
basis.
3. Investment Securities
Debt securities available for sale are carried at fair market value by
means of valuation account in accordance with SFAS 115. At September 30,
1997, the fair market value of securities available for sale was $384,000 more
than amortized cost and at December 31, 1996, the fair market value was
$114,000 more than amortized cost. Available for sale securities gains are
determined under the specific identification method. The income tax on
available for sale securities gains amounted to $27 thousand for the third
quarter and first nine months of 1997. There was no tax in either period of
1996 since there were no gains or losses.
Debt securities held to maturity are carried at cost, adjusted for the
amortization of premiums and accretion of discount. The amortized cost and
estimated market value of securities held to maturity at September 30, 1997
and December 31, 1996, are as follows:
Securities Held to Maturity
---------------------------
Gross Gross Estimated
Book Unrealized Unrealized Market
Value Gains Losses Value
----- ---------- ---------- --------
September 30, 1997 15,293 407 15 15,685
December 31, 1996 14,784 203 72 14,915
4. Earnings per Common Share
The earnings per common share are computed by dividing the net income for
the interim periods by the weighted average number of common shares
outstanding. The weighted average number of shares outstanding in the third
quarter, 1997, and 1996, were 280,511 and 280,573 respectively, and for the
first nine months of 1997 and 1996, were 280,530 and 280,623 respectively.
PART I - Financial Information Continued
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS
<TABLE>
<S> <C> <C> <C> <C>
MINDEN BANCSHARES, INC. AND SUBSIDIARY
MANAGEMENT'S DISCUSSION AND ANALYSIS
CONSOLIDATED INCOME SUMMARY
AND SELECTED FINANCIAL DATA
(in thousands, except per share and ratio data)
Three Months Ended Nine Months Ended
Sept 30 Sept 30 Sept 30 Sept 30
1997 1996 1997 1996
Interest income $5,325 $4,451 $14,695 $12,723
Interest expense 2,364 1,900 6,403 5,495
--------- ----------- --------- ----------
Net interest income 2,961 2,551 8,292 7,228
Provision for possible loan losses 0 0 0 0
--------- ----------- --------- ----------
Net interest income after provision 2,961 2,551 8,292 7,228
Noninterest income 749 556 1,867 1,616
Noninterest expense 1,674 1,383 4,565 3,958
--------- ----------- --------- ----------
Income before taxes 2,036 1,724 5,594 4,886
Income tax expense 688 536 1,800 1,510
--------- ----------- --------- ----------
Net income $1,348 $1,188 $3,794 $3,376
========= =========== ========= ==========
Earnings per share <F1> $4.81 $4.23 $13.52 $12.03
Dividends declared per share $0.00 $0.00 $0.75 $0.65
Average shares outstanding 280.5 280.6 280.5 280.6
Book value per share $111.56 $95.07 $111.56 $95.07
Selected Quarter End Balances:
Loans $l37,209 $113,694
Deposits 249,007 210,281
Debt 7,106 5,500
Equity 31,295 26,671
Total Assets 289,539 244,083
Selected Average Balances:
Loans 134,351 112,298 125,993 106,523
Deposits 250,172 210,238 233,081 204,429
Debt 8,340 6,745 7,139 6,738
Equity 30,448 26,419 29,290 25,377
Total Assets 291,001 245,015 271,282 238,040
Selected Ratios (%)
Return on average assets 1.84% 1.92% 1.87% 1.89%
Return on average equity 17.56% 17.84% 17.32% 17.72%
Net interest margin (taxable equivalent) 4.40% 4.52% 4.46% 4.45%
Tier 1 risk-based capital 21.03% 22.16%
Total risk based capital 22.30% 23.43%
Tier 1 Leverage 10.10% 10.25%
<F1> Earnings per share is based on the weighted average number
of shares in the respective period
</TABLE>
OVERVIEW
The Company's third quarter 1997 net income totaled $1,348 thousand,
($4.81 per share) up 13 percent from $1,188 thousand ($4.23 per share) in the
third quarter, 1996. For the first nine months of 1997, net income was $3,794
thousand ($13.52 per share) up 12% from $3,376 thousand ($12.03 per share) in
the nine months of 1996.
The return on average assets was 1.84 percent for the third quarter,
1997, a decrease of 4 percent from the third quarter, 1996 of 1.92 percent.
For the first nine months of 1997, the return on average assets was 1.87
percent as compared to 1.89 percent for the same period last year, a decrease
of 1 percent.
The return on average equity was 17.56 percent for the third quarter,
1997, a decrease of 2 percent from the third quarter, 1996 of 17.84 percent.
For the first nine months of 1997, the return on average equity was 17.32
percent as compared to 17.72 percent in the prior year, a decrease of 2
percent.
The 1997 third quarter earnings benefited from a 20 percent increase in
net interest income and a 35 percent increase in noninterest income while
being detrimented by a 21 percent increase in noninterest expense when
compared to the 1996 third quarter. The first nine months of 1997 earnings
benefited from a 15 percent increase in net interest income over the prior
year period, a 16 percent increase in noninterest income while being detri-
mented by 15 percent increase in noninterest expense.
Total assets at September 30, 1997 increased to 289,539 thousand, up 19
percent from a year ago and up 16 percent from December 31, 1996.
The consolidated income and expenses of the Company for 1997 have been
affected by the acquisition of First Federal Savings Bank and its merger into
Minden Bank on May 21, 1997.
RESULTS OF OPERATIONS
<TABLE>
<S> <C> <C> <C> <C>
NET INTEREST INCOME
Third Quarter Nine Months
--------------------------------------------
1997 1996 1997 1996
(in thousands) ========= ========= ========= =========
Total Interest Income $5,325 $4,451 $14,695 $12,723
Total Interest Expense 2,364 1,900 6,403 5,495
--------- --------- --------- ---------
Net Interest Income 2,961 2,551 8,292 7,228
Taxable-Equivalent Adjustment
to Interest Income 72 73 217 215
--------- --------- --------- ---------
Net Interest Income-
Taxable Equivalent Basis <F2> $3,033 $2,624 $8,509 $7,443
========= ========= ========= =========
AVERAGE BALANCES (in thousands):
Interest-Earning Assets <F3> $273,721 $230,088 $254,910 $222,802
========= ========= ========= =========
Interest-Bearing Liabilities $216,054 $179,347 $200,403 $174,704
Interest-Free Funds 57,667 50,741 54,507 48,098
--------- --------- --------- ---------
Total Investable Funds $273,721 $230,088 $254,910 $222,802
========= ========= ========= =========
AVERAGE INTEREST RATES (fully taxable): <F2>
Yield On:
Interest-Earning Assets <F3> 7.82% 7.80% 7.82% 7.74%
Interest-Bearing Liabilities 4.34% 4.20% 4.27% 4.19%
--------- --------- --------- ---------
Spread on Interest-Bearing Funds 3.48% 3.60% 3.55% 3.55%
Contribution of Interest-Free Funds 0.92% 0.92% 0.91% 0.90%
--------- --------- --------- ---------
Net Yield on Interest-Earning Assets 4.40% 4.52% 4.46% 4.45%
========= ========= ========= =========
<F2> Reflects an adjustment to the net interest income amount included in the
Statement of Income to permit comparisons of yields on tax-exempt and
taxable assets.
<F3> Based upon amortized cost of all investment securities. Adjustments to
fair market value for available for sale investment securities amounted
to averages of a positive $268 thousand for the third quarter, 1997,
and $7 thousand positive for the first nine months, 1997, as compared
to a negative $296 thousand for the third quarter, 1996, and a positive
$39 thousand for the first nine months of 1996.
</TABLE>
Net Interest Income
The Company's net interest income for the 1997 third quarter was $2,961
thousand, an increase of $410 thousand or 16 percent from $2,551 thousand in
the 1996 third quarter. Interest Income for the third quarter of 1997
increased $874 thousand or 20 percent over the prior year period while interest
expense increased $464 thousand or 24 percent in the third quarter of 1997 as
compared to the prior year period. Of the $874 thousand increase in interest
income in the third quarter, 1997 over 1996, $541 thousand or 62 percent of
is attributable to loan volume increases including the First Federal
acquisition.
Net interest income for the first nine months of 1997 was $8,292
thousand, an increase of $1,064 thousand or 15 percent over the first nine
months of 1996 of $7,228 thousand. Interest income for the first nine months
of 1997 was $14,695 thousand, an increase of $1,972 thousand or 15 percent
over the prior year period of $12,723 thousand while interest expense for the
first nine months of 1997 increased to $6,403 thousand, an increase of $908
thousand or 17 percent over the prior year period of $5,495 thousand. Of the
$1,972 thousand increase in interest income for the first nine months of 1997
over 1996, $1,416 thousand is attributable to increases in loan volume
including the First Federal acquisition.
The acquisition of First Federal on May 21, 1997 and increases in loan
and deposit volume have contributed to the increase in net interest income for
both periods of 1997 over 1996.
Average Interest-Earning Assets
Average interest-earning assets were $273,721 thousand for the 1997 third
quarter, an increase of $43,633 thousand or 19 percent over the 1996 third
quarter. For the first nine months of 1997, interest-earning assets averaged
$254,910 thousand, an increase of 14 percent over the prior year of $222,802
thousand. Average loans increased by $22,053 thousand, 20 percent, during the
third quarter, 1997, over the prior year period, of which $14,646 thousand was
attributable to the First Federal acquisition, and by $19,470 thousand, 18
percent, in the first nine months, 1997 over the same period last year, of
which $7,081 was attributable to the First Federal acquisition. Average
investment securities increased by $12,302 thousand, 13 percent, during the
third quarter, 1997 over the prior year period and by $10,532 thousand, 11
percent during the first nine months, 1997 over 1996. During the third
quarter, 1997, average Federal funds sold increased by $4,456 thousand, 26
percent, over the prior year period and decreased by $731 thousand, 4 percent,
in the first nine months of 1997 over the prior year period. Average interest
bearing balances due from banks increased by $4,734 thousand, 333 percent, in
the third quarter, 1997 over the same period last year and increased by $2,755
thousand, 147 percent, in the first nine months of 1997 over the prior year
period.
Average Interest-Bearing Liabilities
Average interest-bearing liabilities for the 1997 third quarter were
$216,054 thousand, compared to $179,347 thousand for the same period last
year, a 20 percent increase, and were $200,403 thousand for the first nine
months of 1997 as compared to $174,704 thousand for the prior year period, a
15 percent increase. Average time deposits for the 1997 third quarter were
$128,213 thousand, an increase of $30,636 thousand or 31 percent over the same
period last year, and average time deposits for the first nine months of 1997
were $114,258 thousand as compared to $94,673 thousand in the prior year
period, an increase of $19,585 thousand or 21 percent. Average savings and
interest-bearing demand deposits for the 1997 third quarter were $79,501
thousand, an increase of $4,386 thousand or 6 percent over the same period
last year of $75,115 thousand, and were $78,916 thousand in the first nine
months of 1997 as compared to $73,293 in the prior year period, an increase of
$5,623 thousand or 8 percent.
Net Yield on Interest-Earning Assets
The taxable equivalent net yield on interest-earning assets was 4.40%
in the third quarter of 1997, a decrease of 12 basis point from 4.52% in the
same period last year and was 4.46% in the first nine months of 1997 as
compared to the prior year of 4.45%, an increase of one basis point. A major
contributing factor to the third quarter of 1997 decline from the prior year
period has been due to the high ratio of time deposits acquired in the First
Federal acquisition in relation to total deposits acquired. The time deposits
acquired in the First Federal acquisition amounted to $29,433 thousand of the
total deposits acquired of $31,653 thousand, which is reflected in the
comparison of increase in yield on total earning assets of 2 basis points to
7.82 percent while the yield on interest bearing liabilities increased by 12
basis points to 4.34 percent for the third quarter, 1997 as compared to the
prior year period. The first nine months of 1997 one percent increase in net
yield on earning assets over the prior year period reflects increase on yields
on earning assets prior to the First Federal acquisition on May 21, 1997.
Management expects that the net yield on earning assets will remain
constant or increase slightly during the balance of 1997.
PROVISION FOR LOAN LOSSES
The Company has made no provision for loan losses in 1997 or 1996.
Management does not anticipate any provision for loan losses during 1997.
A discussion of the Company's loan portfolio, net charge-off and recoveries,
and allowances for loan losses appears on pages 15-18.
OTHER INCOME
First
Third Quarter Nine Months
------------------- -------------------
1997 1996 1997 1996
(in thousands) ========= ========= ========= =========
Service Charges $429 $407 $1,218 $1,154
Trust Department Fees 2 3 9 38
Available for Sale Securities Gains 81 0 81 0
Insurance Commissions 81 79 240 219
Mortgage Loan Origination and
Related Fees 82 0 100 0
Other Operating Income 74 67 219 205
--------- --------- --------- ---------
Total Other Income $749 $556 $1,867 $1,616
========= ========= ========= =========
Other income for the 1997 third quarter was $749 thousand, up $193
thousand from the same period last year. Of the $193 thousand increase over
the prior year period, other operating income includes gain on sale of
available for sale securities of $81 thousand and mortgage loan origination
and related fees of $82 thousand occurring at the new branch located at the
former First Federal Savings Bank location that had no comparative amounts in
the prior year period.
For the first nine months of 1997, other income was $1,867 thousand, an
increase of $251 thousand over the same period last year of $1,616 thousand.
Of the $251 thousand increase over the prior year period, $81 thousand was
from the gain on sale of available for sale securities occurring in the third
quarter of 1997 and $100 thousand was attributable to mortgage loan
origination and related fees described above.
OPERATING EXPENSES
First
Third Quarter Nine Months
------------------- -------------------
1997 1996 1997 1996
(in thousands) ========= ========= ========= =========
Salaries and Employee Benefits $813 $696 $2,277 $2,088
Occupancy Expense 194 99 391 387
Furniture and Equipment Expense 77 78 213 191
Goodwill Amortization 31 0 42 0
Advalorem Tax Shareholder Assessments 96 82 269 155
Other Operating Expenses 463 428 1,373 1,137
--------- --------- --------- ---------
Total Operating Expenses $1,674 $1,383 $4,565 $3,958
========= ========= ========= =========
Operating expenses for the 1997 third quarter were $1,674 thousand, up
from $1,383 thousand in the 1996 third quarter, an increase of $291 thousand.
Operating expenses for the first nine months of 1997 were $4,565 thousand,
an increase of $607 thousand from $3,958 thousand in the comparable period
last year. All categories of operating expenses reflect increases in both
periods of 1997 over 1996 as the result of the First Federal acquisition with
other causes discussed below.
Combined occupancy expense and furniture and equipment expense for the
1997 third quarter were $271 thousand as compared to $177 thousand for the
same period last year. Occupancy expense and furniture and equipment expense
for the 1997 first nine months were $604 thousand as compared to $578 thousand
for the same period last year. The increase in the third quarter, 1997 as
compared to the third quarter, 1996 was also effected by updating of existing
branch facility. The increase in the first nine months of 1997 over the prior
year period is not as great as the third quarter due to replacement of main
office heating and air conditioning system in the first quarter of 1996.
Goodwill amortization is for the amortization of goodwill occurring from
the First Federal acquisition over a 15 year life.
Banks chartered and operated in the state of Louisiana are not subject
to state income taxes but are subject to shareholder assessment through the
advalorem tax program which is based upon a combination of prior year
stockholders equity and earnings. This expense has increased due to increase
in stockholders equity and annual earnings of 1996 over 1995.
Other operating expenses were $463 thousand for the 1997 third quarter
as compared to $428 thousand for the same period last year. Other operating
expenses in the 1997 first nine months were $1,373 thousand as compared to
$1,137 thousand for the same period last year. The major item in increases
for the third quarter of 1997 over 1996 was the increased expenditure for
advertising by $43 thousand. The increase in other operating expenses for the
first nine months of 1997 over 1996 was impacted by increase in advertising
expense of $77 thousand and buy out of long term data processing contract of
First Federal and data conversion totaling $54 thousand occurring the second
quarter of 1997.
INCOME TAXES
In the 1997 third quarter, the Company recorded income tax expense of
$688 thousand, compared to $536 thousand for the same period last year. In
the 1997 first nine months, income tax expense was $1,800 thousand as compared
to $1,510 thousand in the same period last year.
The effective tax rate was 33.8% for the 1997 third quarter as compared
to 31.1% for the same period last year. The effective tax rate was 32.2% for
the first nine months of 1997, as compared to 30.9% for the same period last
year. The higher effective tax rate in both periods of 1997, as compared to
the same period last year reflects difference in the composition of the
Company's pre-tax income in both periods which includes nondeductible goodwill
amortization.
RECENT ACCOUNTING PRONOUNCEMENTS
In June of 1996, the Financial Accounting Standards Board (FASB) issued
SFAS 125, Accounting for Transfers and Servicing of Financial Assets and
Extinguishment of Liabilities, effective for transactions occurring after
December 31, 1996. SFAS 125 provides for fair value accounting for assets
transferred with the retention of some right(s) of ownership and for
liabilities disposed of for which all liabilities are not extinguished until
a later date. Any application of SFAS 125 will be immaterial in the Bank's
current operations and will not require accounting acknowledgment or
disclosure.
In December of 1996, the Financial Accounting Standards Board (FASB)
issued SFAS 127, Deferral of the Effective Date of Certain Provisions of
FASB Statement No. 125 an amendment of FASB Statement No. 125, December,
1996. Any application of SFAS 127 will be immaterial in the Bank's current
operations and will not require accounting acknowledgment or disclosure.
In February of 1997, the Financial Accounting Standards Board (FASB)
issued SFAS 128, Earnings per Share, effective for financial statements for
both interim and annual periods ending after December 15, 1997. SFAS 128
provides for revised calculation of earnings per share to compare with
current international reporting and provides for computation of earnings per
share from continuing operations and earnings per share of net income along
with disclosures of the respective computations. Since the Company is of
simple capital structure with only one class of common stock outstanding,
management does not anticipate any material impact by SFAS 128 in the
calculation of the respective earnings per share computation and disclosures.
In February of 1997, the Financial Accounting Standards Board (FASB)
issued SFAS 129, Disclosure of Information about Capital Structure, effective
for financial statements for periods ending after December 15, 1997. SFAS 129
provides for the presentation in summary form within an entity's financial
statements, the pertinent rights and privileges of the various securities
outstanding and the disclosure within its financial statements of the number
of shares issued upon conversion, exercise or satisfaction of required
conditions during at least the most recent annual fiscal period and any
subsequent interim period presented. Since this SFAS pertains only to the
disclosure of required information, it should not have any financial impact
on the Company's operations.
CREDIT PORTFOLIO
Loan Portfolio
The Company's loans outstanding, totaled $137,209 thousand at September
30, 1997 as compared to $113,694 thousand at September 30, 1996 and $115,346
thousand at December 31, 1996. The increases over both prior periods have
been due to loans acquired in the First Federal acquisition of $14,487 and
increased loan demand.
The following table sets forth the loan classifications at September 30,
1997, December 31, 1996, and September 30, 1996:
-----------------------------
Sept 30, Dec 31, Sept 30,
1997 1996 1996
(in thousands) --------- --------- ---------
Commercial, Financial and Agricultural Loans $33,557 $31,567 $30,819
Construction Loans Secured by Real Estate 5,038 3,381 3,338
Other Loans Secured by Real Estate 75,152 60,025 59,706
Installment and Single Payment Loans 21,748 18,143 17,916
Other Loans 1,894 2,368 2,101
--------- --------- ---------
Total Loans 137,389 115,484 113,880
Less Unearned Discount 180 138 184
--------- --------- ---------
Total Loans Net of Unearned Discount $137,209 $115,346 $113,694
========= ========= =========
Non-performing Assets
The following table sets forth the non-performing assets at September 30,
1997, December 31, 1996, and September 30, 1996:
-----------------------------
Sept 30, Dec. 31, Sept 30,
1997 1996 1996
(in thousands) --------- --------- ---------
Nonaccrual (Impaired) Loans $377 $355 $418
Past-Due Loans 854 510 340
Restructured Loans 0 0 0
--------- --------- ---------
Total Non-performing Loans 1,231 865 758
Other Real Estate Owned 255 217 287
--------- --------- ---------
Total Non-performing Assets $1,486 $1,082 $1,045
========= ========= =========
In addition to the non-performing loans discussed above, management has
identified other loans for which payments are current that are subject to
potential future classification as nonperforming. As of September 30, 1997
these loans totaled $73 thousand as compared to $216 thousand a year ago and
$501 thousand at December 31, 1996.
Nonaccrual (impaired) loans are those loans on which it appears that the
collection of all principal and interest under the loan terms is unlikely
under either the projection of cash flows or values of underlying collateral.
Once a determination has been made as to the projected amount which may be
collected, any probable under collection is first applied to accrued interest
by reversal against current year earnings with any further under collection
anticipated being reflected by a partial charge off of principal against the
reserve for possible loan losses, leaving the anticipated collectible portion
as the loan balance which does not accrue interest until such time as it
appears probable that the loan will be fully collectible as to principal and
interest, at which time, it will be reinstated with the principal increase
being recognized as recovery by crediting to reserve for possible loan losses
and the accrued interest being recognized as interest income. Collections on
impaired loans upon which full collection of principal and accrued interest is
unlikely, are first applied to the remaining principal, with any excess then
being applied to the partially charged off principal by credit to the reserve
for possible loan losses, with any additional collection then being recognized
as interest income.
Management groups small homogenous loans - residential mortgage, consumer
installment and small business loans of $20 thousand or less - collectively
for evaluation due to the inability to obtain customer cash flow information
to project future collections. Due to the inability to project future cash
flows, all of the nonaccrual (impaired) loans discussed are valuated based
upon net realizable value of underlying collateral. Loans which become past
due 90 days or more, unless due to seasonal fluctuations, are reviewed for
impairment.
The following table sets forth the components of cash basis (nonaccrual -
impaired) loans. There were no renegotiated loans outstanding at either of
the dates shown. There is no allocation of the reserve for possible loan
losses as discussed in the previous paragraph.
-----------------------------
Sept 30, Dec 31, Sept 30,
1997 1996 1996
-------- -------- --------
(in thousands)
Commercial, Financial and Agricultural 278 223 259
Real Estate - Construction 17 26 31
Real Estate - Mortgage 77 97 118
Installment Loans to Individuals 5 9 10
-------- -------- --------
Totals 377 355 418
======== ======== ========
Ratio of Cash Basis Loans to Total Loans 0.27% 0.31% 0.37%
======== ======== ========
The following table sets forth the approximate effect on interest revenue
of cash basis (nonaccrual - impaired) loans for the periods indicated. This
disclosure reflects the interest on loans which were carried on the balance
sheet and were classified nonaccrual (impaired). The rates used in
determining the gross amount of interest that would have been recorded at the
original rate were not necessarily representative of current market rates.
------------------ ------------------
Third Quarter First Nine Months
1997 1996 1997 1996
-------- -------- -------- --------
(in thousands)
Gross amount of interest that would
have been recorded at original rate 11 11 36 34
Less, interest, net of reversals,
recognized in interest income 46 28 97 28
-------- -------- -------- --------
Reduction (increase) in interest
income (35) (17) (61) 6
======== ======== ======== ========
Effect upon the yield on average loans
(basis points) +10 +6 +6 -1
======== ======== ======== ========
Other real estate owned normally represents properties acquired as loan
satisfactions which are recorded at the lower of the investment in the loan
with respect to which the assets were acquired, or the fair value of each
property, with the initial write-downs charged to the reserve for loan losses.
Subsequent write-downs of such properties are reflected as such on the income
statement and gains and losses on disposal are accordingly reflected on the
income statement. Other real estate currently includes former branch located
at 324 Homer Road which was closed January 4, 1995. The former branch was
capitalized at its depreciated value and has subsequently been written down by
$91 thousand.
Allowance for Loan Losses
The allowance for loan losses is available to absorb potential credit
losses from the entire loan portfolio. The appropriate level of the allowance
is based on analyses of the loan portfolio and reflects an amount which, in
management's judgment, is adequate to provide for potential losses. The
analyses include consideration of such factors as the risk rating of
individual credits, the size and diversity of the portfolio, particularly in
terms of industry, economic and political conditions, prior loss experience
and results of periodic credit reviews of the portfolio. Based upon the
results of these analyses, the allowance for losses is increased, from time to
time, by charges to income to the extent management considers appropriate.
The accompanying table reflects the activity in the allowance for loan
losses for the three months ended September 30, 1997, and 1996, and nine
months ended September 30, 1997, and 1996.
<TABLE>
<S> <C> <C> <C> <C>
Third Quarter First Nine Months
------------------- ------------------
1997 1996 1997 1996
(in thousands) ========= ========= ==================
Balance at Beginning of Period $3,596 $3,353 $3,306 $3,396
Charge-Offs
Commercial, Financial and Agricultural 0 0 42 78
Real Estate - Construction 0 0 2 0
Real Estate - Mortgage 0 0 32 0
Installment Loans to Individuals 63 60 118 93
--------- --------- ------------------
Total 63 60 194 171
--------- --------- ------------------
Recoveries
Commercial Financial and Agricultural 0 0 0 0
Real Estate - Construction 0 0 0 0
Real Estate - Mortgage 8 32 146 74
Installment Loans to Individuals 20 29 50 55
--------- --------- ------------------
Total 28 61 196 129
--------- --------- ------------------
Net Recoveries (Charge-Offs) (35) 1 2 (42)
Acquired in First Federal acquisition 0 253 0
Additions Charged to Operations 0 0 0 0
--------- --------- ------------------
Balance at End of Period $3,561 $3,354 $3,561 $3,354
========= ========= ==================
The following table reflects the allowance coverage ratios at September
30, 1997, December 31, 1996 and September 30, 1996.
Sept 30, Dec 31, Sept 30,
For the Quarter Ended: 1997 1996 1996
--------- --------- -----------
Allowance for Loan Losses to:
Loans at Period-End 2.60% 2.87% 2.95%
Average Loans (Quarterly) 2.65% 2.91% 2.99%
Non-performing Loans 289.28% 382.20% 442.48%
Non-performing Assets 239.64% 305.55% 320.96%
Total Net Charge-Offs (annualized) to:
Loans at Period-End (0.10%) 0.04% 0.00%
Average Loans (Quarterly) (0.10%) 0.04% 0.00%
Allowance for Loan Losses ( 3.90%) 1.40% 0.12%
</TABLE>
Management deems its allowance for loan losses at September 30, 1997, to
be adequate. The Company considers that it has sufficient reserves to absorb
losses that may currently exist in the portfolio including the loans acquired
in the First Federal acquisition. The Company will continue to reassess the
adequacy of its allowance for loan losses and make provisions accordingly.
CAPITAL
Total stockholders' equity at September 30, 1997, was $31,295 thousand,
up from $27,536 thousand at December 31, 1996 and $26,671 thousand at
September 30, 1996. Stockholders' equity at September 30, 1997, reflects
positive impact of $254 thousand for net unrealized gains on securities
available for sale.
Risk-Based Capital Ratios
In January, 1989, the Federal Reserve Board ("FRB") issued risk-based
capital guidelines which require banking organizations to maintain certain
ratios of "Qualifying Capital" to "risk-weighted assets." "Qualifying Capital"
is classified into Tier 1 and Tier 2 Capital. Tier 1 Capital applicable to
the Company consists only of common equity. Tier 2 Capital applicable to the
Company consists only of qualifying allowance for loan losses. The amount of
Tier 2 Capital may not exceed Tier 1 Capital. In calculating "risk-weighted
assets," certain risk percentages, as specified by the FRB, are applied to
particular categories of both on- and off-balance sheet assets. Effective
December 31, 1992, the guidelines require that banking organizations maintain
a minimum ratio of Tier 1 Capital to risk-weighted assets of 4% and a minimum
ratio of Tier 1 and Tier 2 Capital ("Total Capital") to risk-weighted assets
of 8% (the "final risk-based guidelines"). At September 30, 1997, the
Company's Tier 1 Capital to risk-weighted assets ratio was 21.03% and the
Total Capital to risk-weighted assets ratio was 22.30%.
Leverage Ratios
The Tier 1 leverage ratio is defined as Tier 1 Capital (as defined under
the risk-based capital guidelines) divided by average total assets (net of
allowance for loan losses). The minimum leverage ratio is 3% for banking
organizations that do not anticipate significant growth and that have well-
diversified risk, excellent asset qualify, high liquidity and good earnings.
Other banking organizations are expected to have ratios of at least 4% to 5%,
depending upon their particular condition and growth plans. Higher capital
ratios could be required if warranted by the particular circumstances, or risk
profile, of a given banking organization. The FRB has not advised the Company
of any specific minimum Tier 1 leverage ratio applicable to it.
The table which follows sets forth the Company's Tier 1 and Tier 2
Capital, risk-weighted assets, including off balance sheet items, and the
Company's risk-based capital ratios under the final guidelines as well as
Tier 1 leverage ratios.
Capital and Ratios
Sept 30, Dec 31, Sept 30,
1997 1996 1996
(in thousands), except ratios --------- --------- ---------
Tier 1 Capital
Common Stockholders' Equity 29,211 25,534 24,983
Tier 2 Capital
Reserve for Possible Loan Losses 1,759 1,457 1,434
--------- --------- ---------
Total Qualifying Capital 30,970 26,991 26,417
========= ========= =========
Risk Weighted Assets 138,898 114,750 112,762
Tier 1 Capital Ratio 21.03% 22.25% 22.16%
Total Capital Ratio 22.30% 23.52% 23.43%
Tier 1 Leverage Ratio 10.10% 10.26% 10.25%
Common Stock Dividends
For the third quarters of 1997 and 1996, the Board of Directors of the
Company declared no dividends. Future dividend policies will be determined by
the Board of Directors in light of earnings and financial condition of the
Company and its subsidiary and other factors, including applicable
governmental regulations and policies.
LIQUIDITY MANAGEMENT
The objective of liquidity management is to ensure the availability of
sufficient cash flows to meet all financial commitments and to capitalize on
investment opportunities. Liquidity management addresses the Company's
ability to meet deposit withdrawals on demand or at contractual maturity, to
service indebtedness and to make new loans and investments as opportunities
arise. The Company monitors and reviews its asset and liability mix on a
routine basis.
The primary sources of liquidity include cash and due from banks, Federal
funds sold and investment securities. Additionally, the bank subsidiary has
the ability to borrow and purchase federal funds on a short term basis from
other financial institutions as a source of liquidity should the need arise.
The loan to deposit ratio averaged 55.10 percent during the 1997 third
quarter and 53.41 percent during the 1996 third quarter. Cash on hand and due
from banks averaged $16,600 thousand in the 1997 third quarter and $10,876
thousand in the 1996 third quarter. Federal funds sold averaged $21,739
thousand in the 1997 third quarter and $17,283 thousand in the 1996 third
quarter.
At September 30, 1997, investment securities at amortized cost, totaled
$118,222 thousand, of which $50,601 thousand or 42.80 percent mature or
reprice within one year, $55,589 thousand or 47.02 percent mature or reprice
within two to five years, and $12,032 thousand or 10.18 percent mature in over
five years. The Company does not anticipate any events which would require
liquidity beyond that which is available from the above referenced sources.
SUPERVISION AND REGULATION
Dividends
Substantially all of the funds used by the Company to pay dividends to
its shareholders are derived from dividends paid to it by its subsidiary bank,
which are subject to certain legal restrictions. Under Louisiana law, state
chartered banks cannot pay dividends in excess of current year earnings plus
undistributed earnings of the prior year without the prior approval of the
Commissioner of Financial Institutions. Under Federal law, dividends by state
chartered banks in excess of current year earnings plus undistributed earnings
of the two prior years would require FRB approval.
In addition to the dividend restrictions described above, the FRB and the
Federal Deposit Insurance Corporation ("FDIC") have authority under the
Financial Institutions Supervisory Act to prohibit or to limit the payment of
dividends by banking organizations they supervise, including the Company and
its bank subsidiary if, in the banking regulators' opinions, payment of a
dividend would constitute an unsafe or unsound practice in light of the
financial condition of the banking organization.
Other
On December 19, 1991, the Federal Deposit Insurance Corporation
Improvement Act of 1991 ("FDICIA") was enacted. This act provided for
recapitalization of the Bank Insurance Fund ("BIF") and the Savings
Association Insurance Fund ("SAIF") of which the Bank is also a member and
substantially revised statutory provisions, including capital standards.
FDICIA provided an insurance rate structure which provides lower rates for
stronger capitalized banks and banks with higher supervisory ratings. The BIF
became fully funded in 1995 and the SAIF became fully funded in 1996 thereby
reducing BIF and SAIF FDIC premiums.
Minden Bank is subject to FDIC insurance assessments. Effective
January 1, 1996, the BIF rate schedule was reduced to 0.0% for the healthiest
banks to 0.27% for the weakest banks. Effective October 1, 1996, under the
provisions of the Deposit Insurance Funds Act of 1996 ("Funds"), the rates
for SAIF deposits were revised to 0.0% for the healthiest banks to 0.27% for
the weakest banks. The Fund Act also provided for separate assessments under
BIF and SAIF effective January 1, 1997 for FICO bond servicing. The FICO
assessments under BIF are at the annual rate of 0.1296% annually for 1997 and
0.648% annually under SAIF for 1997. Minden Bank is currently under the best
available rates for 1997 of 0.00% for BIF and SAIF deposits.
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
MINDEN BANCSHARES, INC. AND SUBSIDIARY
Consolidated Net Interest Income and Average Balances
Three Months Ended September 30, 1997 and 1996
(Thousands)
1997 1996
------------------------------- -------------------------------
Average Rate Average Rate
Balance Interest (Annualized) Balance Interest (Annualized)
--------- -------- ------------ --------- -------- ------------
ASSETS
Interest Bearing Balances Due from Banks $6,157 $72 4.64% $1,423 $18 5.02%
Federal Funds Sold 21,739 298 5.44% 17,283 227 5.21%
Investment Securities <F4> 110,201 1,742 6.27% 97,899 1,506 6.10%
Federal Reserve Bank and
Federal Home Loan Bank Stocks 1,273 20 6.23% 1,185 16 5.36%
Loans 134,351 3,265 9.64% 112,298 2,757 9.74%
--------- -------- --------- --------
Total Interest-
Earning Assets <F4> 273,721 5,397 7.82% 230,088 4,524 7.80%
Allowance for Loan Losses (3,595) (3,360)
Cash and Due from Banks 10,443 9,453
Other Assets <F4> 10,432 8,834
--------- ---------
Total Assets $291,001 $245,015
========= =========
LIABILITIES
Savings and Interest-
Bearing Demand $79,501 $574 2.86% $75,115 $542 2.86%
Time Deposits 128,123 1,698 5.26% 97,487 1,278 5.20%
--------- -------- --------- --------
Total Interest-
Bearing Deposits 207,624 2,272 4.34% 172,602 1,820 4.18%
Securities Sold Under
Repurchase Agreements 8,340 90 4.28% 6,565 76 4.59%
Long-term Debt 90 2 8.75% 180 4 8.91%
--------- -------- --------- --------
Total Interest-
Bearing Liabilities 216,054 2,364 4.34% 179,347 1,900 4.20%
Demand Deposits 42,548 37,636
Other Liabilities 1,951 1,613
--------- ---------
Total Liabilities 260,553 218,596
--------- ---------
STOCKHOLDERS' EQUITY
Common Stockholders' Equity 30,448 26,419
--------- ---------
Total Liabilities and
Stockholders' Equity <F4> $291,001 $245,015
========= =========
SPREAD ON INTEREST-BEARING FUNDS <F4> 3.48% 3.60%
NET INTEREST INCOME AND NET
YIELD ON INTEREST-EARNING ASSETS <F4> $3,033 4.40% $2,624 4.52%
======== ============ ======== ============
<F4> Based upon amortized cost of investment securities and includes
adjustment to interest income for the tax equivalent adjustment
on tax-exempt securities.
MINDEN BANCSHARES, INC. AND SUBSIDIARY
Consolidated Net Interest Income and Average Balances
Nine Months Ended September 30, 1997 and 1996
(Thousands)
1997 1996
------------------------------- -------------------------------
Average Rate Average Rate
Balance Interest (Annualized) Balance Interest (Annualized)
--------- -------- ------------ --------- -------- ------------
ASSETS
Interest Bearing Balances Due from Banks $4,629 $154 4.45% $1,874 $75 5.33%
Federal Funds Sold 18,645 754 5.41% 19,376 762 5.24%
Investment Securities <F5> 104,424 4,860 6.22% 93,892 4,277 6.07%
Federal Reserve Bank and
Federal Home Loan Bank Stocks 1,219 60 6.58% 1,137 51 5.98%
Loans 125,993 9,084 9.64% 106,523 7,773 9.72%
--------- -------- --------- --------
Total Interest-
Earning Assets 254,910 14,912 7.82% 222,802 12,938 7.74%
Allowance for Loan Losses (3,465) (3,398)
Cash and Due from Banks 10,574 9,837
Other Assets <F5> 9,263 8,799
--------- ---------
Total Assets $271,282 $238,040
========= =========
LIABILITIES
Savings and Interest-
Bearing Demand $78,916 $1,692 2.87% $73,293 $1,570 2.85%
Time Deposits 114,258 4,477 5.24% 94,673 3,701 5.21%
--------- -------- --------- --------
Total Interest-
Bearing Deposits 193,174 6,169 4.27% 167,996 5,271 4.18%
Securities Sold Under
Repurchase Agreements 7,139 228 4.27% 6,558 213 4.33%
Long-term Debt 90 6 8.91% 180 11 8.25%
--------- -------- --------- --------
Total Interest-
Bearing Liabilities 200,403 $6,403 4.27% 174,704 $5,495 4.19%
Demand Deposits 39,907 36,463
Other Liabilities 1,682 1,496
--------- ---------
Total Liabilities 241,992 212,663
--------- ---------
STOCKHOLDERS' EQUITY
Common Stockholders' Equity <F5> 29,290 25,377
--------- ---------
Total Liabilities and
Stockholders' Equity $271,282 $238,040
========= =========
SPREAD ON INTEREST-BEARING FUNDS 3.55% 3.55%
NET INTEREST INCOME AND NET
YIELD ON INTEREST-EARNING ASSETS $8,509 4.46% $7,443 4.45%
======== ============ ======== ============
<F5> Based upon amortized cost of investment securities and includes
adjustment to interest income for the tax equivalent adjustment
on tax-exempt securities.
</TABLE>
PART II - Other Information
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
None
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
11 Computation of earnings per share
(This computation is provided in Note 4 to the
Financial Statements on Page 8 and Page 9 under
Management's Discussion and Analysis)
(1) 27 Financial Data Schedule
(b) Reports on Form 8-K
None
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 hereunto duly authorized.
MINDEN BANCSHARES, INC.
November 13, 1997 BY:s/ Jack E. Byrd, Jr.
-----------------------------
Jack E. Byrd, Jr.
President and CEO
November 13, 1997 BY:s/ Robert W. Hines, Jr.
-----------------------------
Robert W. Hines, Jr.
Vice-President and
Chief Financial Officer
Financial Data Schedule
EXHIBIT 27
<TABLE> <S> <C>
<ARTICLE> 9
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM
SEPTEMBER 30, 1997 FINANCIAL STATEMENTS AND IS QUALIFIED IN ITS ENTIRETY BY
REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<CURRENCY> U.S. DOLLARS
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> SEP-30-1997
<EXCHANGE-RATE> 1
<CASH> 14,972
<INT-BEARING-DEPOSITS> 5,511
<FED-FUNDS-SOLD> 11,500
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 101,924
<INVESTMENTS-CARRYING> 15,293
<INVESTMENTS-MARKET> 15,685
<LOANS> 137,209
<ALLOWANCE> 3,561
<TOTAL-ASSETS> 289,539
<DEPOSITS> 249,007
<SHORT-TERM> 0
<LIABILITIES-OTHER> 7,196
<LONG-TERM> 0
0
0
<COMMON> 775
<OTHER-SE> 30,520
<TOTAL-LIABILITIES-AND-EQUITY> 289,539
<INTEREST-LOAN> 9,084
<INTEREST-INVEST> 4,703
<INTEREST-OTHER> 908
<INTEREST-TOTAL> 14,695
<INTEREST-DEPOSIT> 6,169
<INTEREST-EXPENSE> 6,403
<INTEREST-INCOME-NET> 8,292
<LOAN-LOSSES> 0
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 4,565
<INCOME-PRETAX> 5,594
<INCOME-PRE-EXTRAORDINARY> 3,794
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 3,794
<EPS-PRIMARY> 13.53
<EPS-DILUTED> 13.53
<YIELD-ACTUAL> 4.46
<LOANS-NON> 377
<LOANS-PAST> 854
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 73
<ALLOWANCE-OPEN> 3,306
<CHARGE-OFFS> 194
<RECOVERIES> 196
<ALLOWANCE-CLOSE> 3,561
<ALLOWANCE-DOMESTIC> 3,561
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
