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, 1998
( ) 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:
280,645 as of October 31, 1998
Transitional Small Business Disclosure Format (Check one):
Yes No X
Page 1 of 29 Pages
Exhibit Index - 26
FORM 10-QSB
INDEX
PART I Page
Item 1. Financial Statements - Minden Bancshares,
Inc. and Subsidiary
Consolidated Balance Sheets as of
September 30, 1998 and December 31, 1997 4
Consolidated Statements of Income for
the Three Months and Nine Months
Ended September 30, 1998 and 1997 5
Consolidated Statements of Comprehensive
Income for the Three Months and Nine
Months Ended September 30, 1998 and 1997 6
Consolidated Statements of Cash Flows
for the Nine Months ended September 30,
1998, and 1997 7
Notes to Consolidated Financial 8-10
Statements
Item 2. Management's Discussion and Analysis 11-26
PART II
Item 4. Submission of Matters to a Vote
of Security Holders 27
Item 6. Exhibits and Reports on Form 8-K 27
PART I - Financial Information
ITEM 1. FINANCIAL STATEMENTS
<TABLE>
<S> <C> <C>
MINDEN BANCSHARES, INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
SEPTEMBER 30, 1998 AND DECEMBER 31, 1997
(UNAUDITED)
September December
1998 1997
-------- --------
ASSETS
-------------------------------------------(in thousands, except per share data)
Cash and Cash Equivalents:
Cash and Due From Banks $14,711 $17,196
Federal Funds Sold 18,000 4,500
--------- ---------
Total 32,711 21,696
--------- ---------
Securities:
Held to Maturity 18,298 16,502
Available for Sale 109,772 108,414
--------- ---------
Total 128,070 124,916
--------- ---------
Federal Reserve Bank and Federal Home Loan Bank Stock 1,520 1,400
Loans, Less Allowance for Loan Losses of $3,537 and $3,603 138,845 133,286
Accrued Interest Receivable 2,574 2,642
Bank Premises and Equipment 3,821 3,662
Real Estate Owned Other Than Bank Premises 352 278
Other Assets 4,100 4,198
--------- ---------
Total Assets $311,993 $292,078
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------------------------
Liabilities:
-----------
Deposits:
Noninterest Bearing $43,731 $42,045
Interest Bearing 219,149 206,138
--------- ---------
Total Deposits 262,880 248,183
Securities Sold Under Repurchase Agreement 11,067 10,809
Accrued Interest Payable 1,075 986
Other Liabilities 902 414
--------- ---------
Total Liabilities 275,924 260,392
--------- ---------
Stockholders' Equity:
--------------------
Common Stock, par value $2.50 per share; 500,000
shares authorized; 309,816 shares issued;
280,645 and 280,511 shares outstanding 775 775
Additional Paid-In Capital 11,215 11,205
Undivided Profits 24,698 20,737
Accumulated Other Comprehensive Income 677 269
Treasury Stock-At Cost (1,296) (1,300)
--------- ---------
Total Stockholders' Equity 36,069 31,686
--------- ---------
Total Liabilities and Stockholders' Equity $311,993 $292,078
========= =========
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, 1998 AND 1997
(UNAUDITED)
Three Months Nine Months
Ended September 30 Ended September 30
================== ===================
1998 1997 1998 1997
-------- -------- -------- ---------
Interest Income: (in thousands, except per share data)
---------------
Interest and Fees on Loans $3,439 $3,265 $10,033 $9,084
Securities:
Held to Maturity (non-taxable) 229 189 660 562
Available for Sale 1,442 1,481 4,375 4,081
Federal Funds Sold 352 298 855 754
Federal Reserve Stock and Other 23 20 66 60
Interest-Bearing Balances with Banks 93 72 254 154
-------- -------- -------- ---------
Total Interest Income 5,578 5,325 16,243 14,695
-------- -------- -------- ---------
Interest Expense:
----------------
Savings and Interest-Bearing Demand Deposits 631 574 1,849 1,692
Time Deposits 1,670 1,698 4,920 4,477
Securities Sold Under Repurchase Agreement and Other 134 92 374 234
-------- -------- -------- ---------
Total Interest Expense 2,435 2,364 7,143 6,403
-------- -------- -------- ---------
Net Interest Income 3,143 2,961 9,100 8,292
Provision for Loan Losses 0 0 0 0
-------- -------- -------- ---------
Net Interest Income After
Provision for Loan Losses 3,143 2,961 9,100 8,292
-------- -------- -------- ---------
Other Income:
------------
Service Charges 419 429 1,218 1,218
Trust Department Fees 0 2 0 9
Available for Sale Securities Gains 0 81 0 81
Insurance Commissions 72 81 177 240
Mortgage Loan Origination and Related Fees 86 82 202 100
Other Operating Income 103 74 344 219
-------- -------- -------- ---------
Total Other Income 680 749 1,941 1,867
-------- -------- -------- ---------
Operating Expenses:
------------------
Salaries and Employee Benefits 825 813 2,466 2,277
Occupancy Expense 113 194 336 391
Furniture and Equipment Expense 64 77 210 213
Goodwill Amortization 31 31 94 42
Capital Stock Taxes 106 96 319 269
Other Operating Expenses 517 463 1,491 1,373
-------- -------- -------- ---------
Total Operating Expense 1,656 1,674 4,916 4,565
-------- -------- -------- ---------
Income Before Income Taxes 2,167 2,036 6,125 5,594
Income Taxes 682 688 1,926 1,800
-------- -------- -------- ---------
Net Income $1,485 $1,348 $4,199 $3,794
======== ======== ======== =========
Earnings Per Share $5.29 $4.81 $14.97 $13.53
======== ======== ======== =========
Dividends Declared Per Share $0.00 $0.00 $0.85 $0.75
======== ======== ======== =========
See accompanying notes.
</TABLE>
<TABLE>
<S> <C> <C> <C> <C>
MINDEN BANCSHARES, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
THREE MONTHS & NINE MONTHS ENDED
SEPTEMBER 30, 1998 AND 1997
(UNAUDITED)
Three Months Nine Months
Ended September 30 Ended September 30
================== ==================
1998 1997 1998 1997
-------- -------- -------- --------
(in thousands, except per share data)
Net Income $1,485 $1,348 $4,199 $3,794
-------- -------- -------- --------
Other Comprehensive Income:
Unrealized Gains (Losses) on Securities:
Unrealized Gains (Losses) Arising during Period 321 199 617 272
Less: Reclassification Adjustment for Gains
Arising during Period 0 0 0 0
-------- -------- -------- --------
Total Gains (Losses) Arising during Period 321 199 617 272
Tax (Expense) Benefit (109) 69 (209) (93)
-------- -------- -------- --------
Other Comprehensive Income 212 130 408 179
-------- -------- -------- --------
Comprehensive Income $1,697 $1,478 $4,607 $3,973
======== ======== ======== ========
See accompanying notes
</TABLE>
<TABLE>
<S> <C> <C>
MINDEN BANCSHARES, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS
NINE MONTHS ENDED SEPTEMBER 30, 1998 AND 1997
(UNAUDITED)
====================
1998 1997
--------- ---------
Cash Flows from Operating Activities: (in thousands, except per share data)
------------------------------------
Net Income $4,199 $3,794
Adjustments to Reconcile Net Income to Net Cash
Provided by Operating Activities:
Depreciation and Amortization 407 317
(Gain) Loss on Sale of Investment Securities 0 (81)
(Gain) Loss on Sale of ORE (18) (2)
(Increase) Decrease in Accrued Interest Receivable 68 (90)
Acquisition of Goodwill 0 (1,872)
(Increase) Decrease in Other Assets (345) 63
Increase (Decrease) in Accrued Interest Payable 89 118
Increase (Decrease) in Other Liabilities 488 931
--------- ---------
Total Adjustments 689 (616)
--------- ---------
Net Cash Provided (Used) by Operating Activities 4,888 3,178
Cash Flows from Investing Activities:
------------------------------------
Proceeds from Sales and Maturities of Investment Securities:
Available for sale 73,164 66,666
Held to maturity 1,111 411
Purchase of Investment Securities:
Available for sale (74,024) (78,243)
Held to maturity (2,907) (920)
Proceeds from Sales of ORE 151 6
Purchase of First Federal Savings Bank-property 0 (565)
Purchase of Equipment (333) (164)
Net (Increase) Decrease in Loans (5,766) (21,830)
--------- ---------
Net Cash (Used) by Investing Activities (8,604) (34,639)
Cash Flows from Financing Activities:
------------------------------------
Dividends Paid (238) (211)
Net Increase (Decrease) in Noninterest Bearing Demand
Deposits 1,686 5,245
Net Increase (Decrease) in Interest-Bearing Deposits 13,011 27,807
Net Increase (Decrease) in Securities Sold Under
Repurchase Agreements 258 1,688
Purchase of Treasury Stock (2) (3)
Sale of Treasury Stock 16 0
--------- ---------
Net Cash Provided by Financing Activities 14,731 34,526
--------- ---------
Net Increase (Decrease) in Cash and Cash Equivalents 11,015 3,065
Cash and Cash Equivalents at Beginning of Period 21,696 23,407
--------- ---------
Cash and Cash Equivalents at End of Period $32,711 $26,472
========= =========
Cash Payments: Interest $7,054 $6,285
========= =========
Income Taxes $2,098 $1,702
========= =========
See accompanying notes.
</TABLE>
MINDEN BANCSHARES, INC. AND SUBSIDIARY
Notes to Consolidated Financial Statements
(Unaudited)
September 30, 1998
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.
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
The specific identification method is used to determine realized gains and
losses on sales of investment securities which is included in other operating
income.
Debt securities available for sale are carried at fair market value by
means of valuation account in accordance with SFAS 115. At September 30, 1998,
the fair market value of securities available for sale was $1,026,000 more than
amortized cost and at December 31, 1997, the fair market value was $408,000
more than amortized cost.
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, 1998
and December 31, 1997, are as follows:
Securities Held to Maturity
---------------------------
Gross Gross Estimated
Book Unrealized Unrealized Market
Value Gains Losses Value
----- ---------- ---------- --------
September 30, 1998 18,298 607 71 18,834
December 31, 1997 16,502 441 2 16,941
4. Accumulated Other Comprehensive Income
Three Months Ended Three Months Ended
September 30, 1998 September 30, 1997
----------------------- -----------------------
Accumulated Accumulated
Unrealized Other Unrealized Other
Gains (Losses) Comprehensive Gains (Losses) Comprehensive
on Securities Income on Securities Income
-------- --------- -------- -------
Beginning Balance $465 $465 $123 $123
Current-period Change 212 212 130 130
-------- --------- -------- --------
Ending Balance $677 $677 $253 $253
======== ========= ======== ========
Nine Months Ended Nine Months Ended
September 30, 1998 September 30, 1997
----------------------- -----------------------
Accumulated Accumulated
Unrealized Other Unrealized Other
Gains (Losses) Comprehensive Gains (Losses) Comprehensive
on Securities Income on Securities Income
-------- --------- -------- -------
Beginning Balance $269 $269 $74 $74
Current-period Change 408 408 179 179
-------- --------- -------- --------
Ending Balance $677 $677 $253 $253
======== ========= ======== ========
5. 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, 1998,
and 1997, were 280,645 and 280,511 respectively, and for the first nine months
of 1998 and 1997, were 280,586 and 280,530 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
---------------------- ---------------------
September 30 September 30
-------------- --------------
1998 1997 1998 1997
--------- --------- --------- ----------
Interest income $5,578 $5,325 $16,243 $14,695
Interest expense 2,435 2,364 7,143 6,403
--------- --------- --------- ---------
Net interest income 3,143 2,961 9,100 8,292
Provision for possible loan losses 0 0 0 0
--------- ----------- --------- ----------
Net interest income after provision 3,143 2,961 9,100 8,292
Noninterest income 680 749 1,940 1,867
Noninterest expense 1,656 1,674 4,915 4,565
--------- ----------- --------- ----------
Income before taxes 2,167 2,036 6,125 5,594
Income tax expense 682 688 1,926 1,800
--------- ----------- --------- ----------
Net income $1,485 $1,348 $4,199 $3,794
========= =========== ========= ==========
Earnings per share <F1> $5.29 $4.81 $14.97 $13.53
Dividends declared per share $0.00 $0.00 $0.85 $0.75
Average shares outstanding 280.6 280.5 280.6 280.5
Book value per share $128.52 $111.56 $128.52 $111.56
Selected Quarter End Balances:
Loans $l42,382 $137,209
Deposits 262,880 249,007
Debt 11,067 7,106
Equity 36,069 31,295
Total Assets 311,993 289,539
Selected Average Balances:
Loans 141,803 134,351 140,717 125,993
Deposits 260,852 250,172 255,616 233,081
Debt 10,676 8,340 10,548 7,139
Equity 35,128 30,664 33,786 29,321
Total Assets 308,686 291,167 301,750 271,266
Selected Ratios (%)
Return on average assets 1.91% 1.84% 1.86% 1.87%
Return on average equity 16.77% 17.44% 16.62% 17.30%
Net interest margin (taxable equivalent) 4.42% 4.40% 4.42% 4.46%
Tier 1 risk-based capital 20.14% 21.03%
Total risk based capital 21.39% 22.30%
Tier 1 Leverage 10.51% 10.10%
<F1> Earnings per share is based on the weighted average number
of shares in the respective period
</TABLE>
OVERVIEW
The Company's third quarter, 1998 net income totaled $1,485 thousand,
($5.29 per share) up 10 percent from $1,348 thousand ($4.81 per share) in the
third quarter, 1997. For the first nine months of 1998, net income was $4,199
thousand ($14.97 per share) up 11% from $3,794 thousand ($13.53 per share) in
the first nine months of 1997.
The return on average assets was 1.91 percent for the third quarter,
1998, an increase of 4 percent from the third quarter, 1997 of 1.84 percent.
The return on average assets was 1.86 percent for the first nine months of
1998, a 1 percent decrease from 1.87 percent for the same period last year.
The return on average equity was 16.77 percent for the third quarter,
1998, a decrease of 4 percent from the third quarter, 1997 of 17.44 percent.
The return on average equity was 16.62 percent for the first nine months of
1998, a decrease of 4 percent from 17.30% in the prior year.
The 1998 third quarter earnings benefited from a 6 percent increase in
net interest income and a 1 percent increase in noninterest expense while
being detrimented by a 9 percent decrease in noninterest income when
compared to the 1997 third quarter. The first nine months of 1998 earnings
benefited from a 9 percent increase in net interest income over the prior
year period, a 4 percent increase in noninterest income while being detri-
mented by 8 percent increase in noninterest expense.
Total assets at September 30, 1998 increased to 311,993 thousand, up 8
percent from a year ago and up 7 percent from December 31, 1997.
The consolidated income and expenses of the Company for 1998 were affected
by the acquisition of First Federal Savings Bank and its merger into Minden
Bank on May 21, 1997. The 1998 numbers include operations of our Youree Drive
Branch (formerly First Federal Savings Bank) for both entire periods, whereas
1997 numbers include operations beginning on May 22.
RESULTS OF OPERATIONS
<TABLE>
<S> <C> <C> <C> <C>
NET INTEREST INCOME
Third Quarter Nine Months
-------------------- --------------------
1998 1997 1998 1997
(in thousands) ========= ========= ========= =========
Total Interest Income $5,578 $5,325 $16,243 $14,695
Total Interest Expense 2,435 2,364 7,143 6,403
--------- --------- --------- ---------
Net Interest Income 3,143 2,961 9,100 8,292
Taxable-Equivalent Adjustment
to Interest Income 88 72 254 212
--------- --------- --------- ---------
Net Interest Income-
Taxable Equivalent Basis <F2> $3,231 $3,033 $9,354 $8,509
========= ========= ========= =========
AVERAGE BALANCES (in thousands):
Interest-Earning Assets <F3> $289,971 $273,721 $282,907 $254,910
========= ========= ========= =========
Interest-Bearing Liabilities $224,920 $216,054 $221,773 $200,448
Interest-Free Funds 65,051 57,667 61,134 54,462
--------- --------- --------- ---------
Total Investible Funds $289,971 $273,721 $282,907 $254,910
========= ========= ========= =========
AVERAGE INTEREST RATES (fully taxable): <F2>
Yield On:
Interest-Earning Assets <F3> 7.75% 7.82% 7.80% 7.82%
Interest-Bearing Liabilities 4.30% 4.34% 4.31% 4.27%
--------- --------- --------- ---------
Spread on Interest-Bearing Funds 3.45% 3.48% 3.49% 3.55%
Contribution of Interest-Free Funds 0.97% 0.92% 0.93% 0.91%
--------- --------- --------- ---------
Net Yield on Interest-Earning Assets 4.42% 4.40% 4.42% 4.46%
========= ========= ========= =========
<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 $697 thousand for the third quarter, 1998, and
$627 thousand positive for the first nine months, 1998, as compared to a
negative $268 thousand for the third quarter, 1997 and a positive $7
thousand for the first nine months of 1997.
</TABLE>
Net Interest Income
The Company's net interest income for the 1998 third quarter was $3,143
thousand, an increase of 6 percent over $2,961 thousand in the 1997 third
quarter, and an increase of 4 percent over $3,019 thousand in the second
quarter, 1998. Net interest income for the first nine months of 1998 was
$9,100, an increase of 10 percent over the first nine months, 1997 of $8,292
thousand. 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 the first nine months of 1998 over 1997, whereas the increase in the third
quarter, 1998 over 1997 was due primarily to loan and deposit increases.
Average Interest-Earning Assets
Average interest-earning assets were $289,971 thousand for the 1998
third quarter, $16,250 thousand higher than the 1997 third quarter, an
increase of 6 percent. For the first nine months of 1998, interest-earning
assets averaged $282,907 thousand, an increase of 11 percent over the prior
year of $254,910 thousand. Average loans increased by $7,452 thousand,
during the third quarter, 1998, over the prior year, and by $14,724 thousand
in the first nine months, 1998 over the first nine months, 1997. Average
investment securities increased by $3,244 thousand during the third quarter,
1998 over the prior year and by $8,812 thousand during the first nine months,
1998 over 1997. During the third quarter, 1998, average Federal funds sold
increased by $4,054 thousand over the prior year and increased by $2,593
thousand in the first nine months, 1998 over the prior year period. Average
interest bearing balances due from banks increased by $1,266 thousand in the
third quarter, 1998 over the same period last year and increased by $1,618
thousand in the first nine months, 1998 over the prior year period.
Average Interest-Bearing Liabilities
Average interest-bearing liabilities for the 1998 third quarter were
$224,920 thousand, compared to $216,054 thousand for the same period last
year, a 4 percent increase, and were $221,773 for the first nine months of
1998 as compared to $200,448 for the prior year, an 11 percent increase.
Average time deposits for the 1998 third quarter were $127,366, a decrease
of $757 thousand from the same period last year, a decrease of 1 percent,
and average time deposits for the first nine months, 1998 were $125,863
thousand as compared to $114,258 thousand in the prior year, an increase
of 10 percent. Average savings and interest-bearing demand deposits for
the 1998 third quarter were $86,878 thousand, an increase of $7,377
thousand or 9 percent over the same period last year, and were $85,362
thousand in the first nine months, 1998 as compared to $78,916 thousand
in the prior year, an increase of 8 percent.
Net Yield on Interest-Earning Assets
The taxable equivalent net yield on interest-earning assets was 4.42
percent in the third quarter of 1998, an increase of 2 basis points over
4.40 percent in the same period last year and was 4.42 percent in the first
nine months, 1998 as compared to the prior year of 4.45 percent. The major
contributing factor for the increase in the third quarter, 1998 over 1997
was the recognition of cash basis interest, discussed below, while the first
nine months, 1998 decrease from the prior year has been due to the increased
competitive banking market for loans and deposits causing greater declines
in loan rates than deposit rates.
Management expects that the net yield on earning assets will decrease
slightly during the balance of 1998.
PROVISION FOR LOAN LOSSES
The Company has made no provision for loan losses in 1998 or 1997.
Management does not anticipate any provision for loan losses during 1998.
A discussion of the Company's loan portfolio, net charge-off and recoveries,
and allowances for loan losses appears on pages 15-18.
<TABLE>
<S> <C> <C> <C> <C>
OTHER INCOME
First
Third Quarter Nine Months
------------------- -------------------
1998 1997 1998 1997
(in thousands) ========= ========= ========= =========
Service Charges $419 $429 $1,218 $1,218
Trust Fees 0 7 0 9
Available for Sale Securities Gains 0 81 0 81
Insurance Commissions 72 81 177 240
Mortgage Loan Origination and
Related Fees 86 82 202 100
Other Operating Income 103 74 344 219
--------- --------- --------- ---------
Total Other Income $680 $754 $1,941 $1,867
========= ========= ========= =========
</TABLE>
Other income for the 1998 third quarter was $680 thousand, down $74
thousand from the same period last year. The decrease has been due to
the $81 thousand gain in the prior year on sale of securities.
For the first nine months of 1998, other income was $1,941 thousand,
an increase of $74 thousand over the same period last year. The increases
have been due to 1998 operation for the full period of the Youree Drive
Branch acquired in the second quarter, 1997 along with some fee structure
changes.
<TABLE>
<S> <C> <C> <C> <C>
OPERATING EXPENSES
First
Third Quarter Nine Months
------------------- -------------------
1998 1997 1998 1997
(in thousands) ========= ========= ========= =========
Salaries and Employee Benefits $825 $813 $2,466 $2,277
Occupancy Expense 113 194 336 391
Furniture and Equipment Expense 64 77 210 213
Goodwill Amortization 31 31 94 42
Capital Stock Taxes 106 96 319 269
Other Operating Expenses 517 463 1,491 1,373
--------- --------- --------- ---------
Total Operating Expenses $1,656 $1,674 $4,916 $4,565
========= ========= ========= =========
</TABLE>
Operating expenses for the 1998 third quarter were $1,656 thousand,
down from $1,674 thousand in the 1997 third quarter, a decrease of $18
thousand. Operating expenses for the first nine months of 1998 were
$4,916 thousand, an increase of $351 thousand over $4,565 thousand in
the comparable period last year. Most categories of operating expenses
except occupancy expenses increased in the third quarter and for the
first nine months, 1998 as compared to the same periods in the prior
year. The first nine months, 1998 reflect operations for the entire
period for the acquisition of First Federal on May 21, 1997, while
1997 reflects its operation for only a portion of the time along with
some volume increases. The decrease in occupancy expense in both periods,
1998 was due to renovations and updating of one our Shreveport, Louisiana
branches in 1997.
Salaries and employee benefits in the 1998 third quarter were $825
thousand, compared to $813 thousand in the same period last year. Salaries
and employee benefits in the 1998 first nine months were $2,466 thousand as
compared to $2,277 thousand in the same period last year. The increases for
both periods in 1998 over 1997 were attributable to full period operations of
the Youree Drive Branch in 1998 along with Salary increases.
Combined occupancy expense and furniture and equipment expense for the
1998 third quarter were $177 thousand as compared to $271 thousand for the
same period last year. Occupancy expense and furniture and equipment expense
for the 1998 first nine months were $546 thousand as compared to $604 thousand
for the same period last year. The major portion of decreases in both 1998
periods has been the branch renovations and updating mentioned above.
Of the other operating expense categories shown, the increases in amorti-
zation of goodwill for the first nine months of 1998 was attributable to amor-
tization from the First Federal acquisition in 1997 for the entire period in
1998 whereas 1997 refelectd only a portion of the period. Goodwill from the
First Federal acquisition is being amortized over 15 year life.
The increases in capital stock taxes are due to increases in stockholders'
equity and increased earnings in both periods of 1998 over 1997.
INCOME TAXES
In the 1998 third quarter, the Company recorded income tax expense of
$682 thousand, compared to $688 thousand for the same period last year. In
the 1998 first nine months, income tax expense was $1,926 thousand as compared
to $1,800 thousand in the same period last year.
The effective tax rate was 31.5% for the 1998 third quarter as compared
to 33.8% for the same period last year. The effective tax rate was 31.4% for
the first nine months of 1998, as compared to 32.2% for the same period last
year. The slightly lower effective tax rate in both periods of 1998, as
compared to the same period last year reflects difference in the composition of
the Company's pre-tax income in both years.
RECENT ACCOUNTING PRONOUNCEMENTS
In June of 1997, the Financial Accounting Standards Board (FASB) issued
SFAS 130, Reporting Comprehensive Income, effective for fiscal years beginning
after December 15, 1997. SFAS 130 discusses how to report and display compre-
hensive income and its components. Comprehensive income is defined as "the
change in equity [net assets] of a business enterprise during a period from
transactions and other events and circumstances from non owner sources. It
includes all changes in equity during a period except those resulting from
investments by owners and distributions to owners." This statement divides
comprehensive income into net income and other comprehensive income. The only
item that management anticipates that will be included in other comprehensive
income will be the net unrealized gain or loss on investment securities class-
ified as "available for sale," therefore there should be no material impact by
this SFAS on operations or financial statements.
In June of 1997, the Financial Accounting Standards Board (FASB) issued
SFAS 131, Disclosures about Segments of an Enterprise and Related Information,
effective for fiscal years beginning after December 15, 1997. SFAS 131 requires
that public business enterprises report certain information about operating
segments in complete sets of financial statements of the enterprise and in
condensed financial statements of interim periods issued to shareholders. It
also requires that public business enterprises report certain information about
their products and services, the geographic areas in which they operate, and
their major customers. At the current time, the Company does not meet the
additional reporting requirements of this SFAS.
OTHER ACCOUNTING ISSUES
-----------------------
Year 2000
- ---------
The problem now known as the "Year 2000" is the inability of older computer
systems, software and other equipment which have only maintained a two digit
year in date information to chronologically align dates with the occurrence of
the year 2000.
The Board of Directors has adopted a "Year 2000 Policy" to insure that all
information systems and other areas which may be affected by the "Year 2000"
millennium change are properly and expeditiously addressed to insure the contin-
uation of normal business operations of the Bank into the next millennium. In
the "Year 2000 Policy," provision is made for a "Year 2000 Plan" whereby an EDP
Steering Committee headed by the Vice President and Data Center Manager will
identify the areas which may be affected by the "Year 2000," and will address
all issues and will make any necessary recommendations to the Board of Directors
for approval.
The EDP Steering Committee has researched the need to upgrade the Bank's
"Mainframe" computer and software and has made recommendations to the Board of
Directors, which has approved the acquisition. The scheduling for installation
of the new computer system and software is in process and installation should be
completed in the fourth quarter, 1998. All personal computers in service by
the Bank have been tested, and necessary upgrades have been ordered and
installed. There are some computer networks with which the Bank communicates
that have advised that their upgrades to meet the "Year 2000" requirements will
not be in place until the first quarter, 1999.
Under the Bank's "Year 2000 Policy," all computer systems and electronic
date sensitive devices are to be tested, with necessary upgrades made, and cer-
tified as to their "Year 2000" readiness by the end of the first quarter, 1999.
CREDIT PORTFOLIO
Loan Portfolio
The Company's loans outstanding, totaled $142,382 thousand at September
30, 1998 as compared to $136,889 thousand at December 31, 1997 and $137,209
thousand at September 30, 1997. The increase in loans has been due to
increased loan demand.
The following table sets forth the loan classifications at September
30, 1998, December 31, 1997 and September 30, 1997:
------------------------------
Sept. 30, Dec. 31, Sept 30,
(in thousands) 1998 1997 1997
--------- --------- ---------
Commercial, Financial & Agricultural Loans $39,312 $33,673 $33,557
Construction Loans Secured by Real Estate 4,867 3,778 5,038
Other Loans Secured by Real Estate 73,741 75,237 75,152
Installment and Single Payment Loans 24,341 22,186 21,748
Other Loans 410 2,178 1,894
--------- --------- ---------
Total Loans 142,671 137,052 137,389
Less Unearned Discount 289 163 180
--------- --------- ---------
Total Loans net of Unearned Discount $142,382 $136,889 $137,209
========= ========= =========
Non-performing Assets
The following table sets forth the non-performing assets at September
30, 1998, December 31, 1997 and September 30, 1997:
----------------------------
Sept. 30, Dec. 31, Sept. 30,
1998 1997 1997
(in thousands) --------- -------- ---------
Non-Accrual (Impaired-Cash Basis) Loans $313 $562 $377
Past-Due Loans 995 587 854
Restructured Loans 0 0 0
------- ------- -------
Total Non-performing Loans 1,308 1,149 1,231
Other Real Estate Owned 352 278 255
------- ------- -------
Total Non-performing Assets $1,660 $1,427 $1,486
======= ======= =======
In addition to the non-performing loans discussed above, management
identifies other loans for which payments are current that are subject to
potential future classification as nonperforming. As of September 30, 1998
there were no loans identified as subject to potential future classification
as nonperforming compared to $73 thousand a year ago and $71 thousand at
December 31, 1997.
Nonaccrual (impaired-cash basis) loans are those loans on which it appears
that the collection of all principal and interest under the loan terms is un-
likely under either the projection of cash flows or values of underlying col-
lateral. Once a determination has been made as to the projected amount which
may be collected, the anticipated under collection is first applied to accrued
interest by reversal against current year earnings with any further under col-
lection anticipated being reflected by a partial charge off of principal
against the reserve for possible loans losses, leaving the anticipated col-
lectible 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. Nonaccrual (impaired-cash basis)
loans amounted to 0.22% of total loans at September 30, 1998 and 0.27% of total
loans at September 30, 1997. Interest income on nonaccrual loans which would
have been reported on an accrual basis amounted to approximately $9,000 for the
quarter ended September 30, 1998 as compared to $11,000 for the quarter ended
September 30, 1997 and $27,000 for the nine months ended September 30, 1998 as
compared to $36,000 for the nine months ended September 30, 1997. Interest
income included cash basis interest of $79,000 in the third quarter, 1998 as
compared to $54,000 in the third quarter, 1997 and $92,000 in the first nine
months, 1998 as compared to $96,000 in the first nine months, 1997. Cash
basis interest provided increases of 20 basis points in the yield on average
loans in the third quarter, 1998 as compared to 13 basis points in the third
quarter, 1997 and increases of 6 basis points in the first nine months, 1998
as compared to 6 basis points in the first nine months, 1997. Interest
income for both periods, 1998 and 1997 did not include any interest on
restructured loans.
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 pro-
ject future collections. Due to the inability to project future cash flows, all
of the nonaccrual (impaired) loans discussed are evaluated 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.
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 month and nine month periods ended September 30, 1998,
and 1997.
<TABLE>
<S> <C> <C> <C> <C>
Third Quarter First Nine Months
------------------- ------------------
1998 1997 1998 1997
(in thousands) ========= ========= ========= ========
Balance at Beginning of Period $3,511 $3,596 $3,603 $3,306
Charge-Offs
Commercial, Financial and Agricultural 25 0 45 42
Real Estate - Construction 0 0 23 2
Real Estate - Mortgage 4 0 21 32
Installment Loans to Individuals 77 63 214 118
--------- --------- ------------------
Total 106 63 303 194
--------- --------- ------------------
Recoveries
Commercial Financial and Agricultural 0 0 0 0
Real Estate - Construction 0 0 0 0
Real Estate - Mortgage 99 8 170 146
Installment Loans to Individuals 33 20 67 50
--------- --------- ------------------
Total 132 28 237 196
--------- --------- ------------------
Net Recoveries (Charge-Offs) 26 (35) (66) 2
Acquired in First Federal acquisition 0 0 253
Additions Charged to Operations 0 0 0 0
--------- --------- ------------------
Balance at End of Period $3,537 $3,561 $3,537 $3,561
========= ========= ==================
The following table reflects the allowance coverage ratios at September 30,
1998, December 31, 1997 and September 30, 1997.
Sept 30, Dec 31, Sept 30,
For the Quarter Ended: 1998 1997 1997
--------- --------- -----------
Allowance for Loan Losses to:
Loans at Period-End 2.48% 2.63% 2.60%
Average Loans 2.49% 2.64% 2.65%
Non-performing Loans 270.41% 313.58% 289.28%
Non-performing Assets 213.07% 252.49% 239.64%
Total Net Charge-Offs (annualized) to:
Loans at Period-End (0.07%) (0.03%) (0.10%)
Average Loans (0.07) (0.03%) (0.10%)
Allowance for Loan Losses (2.92) (1.16%) (3.90%)
</TABLE>
Management deems its allowance for loan losses at September 30, 1998, to
be adequate. The Company considers that it has sufficient reserves to absorb
losses that may currently exist in the portfolio. 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, 1998, was $36,069 thousand,
up from $31,686 thousand at December 31, 1997 and $31,295 thousand at
September 30, 1997. Stockholders' equity at September 30, 1998, reflects
positive impact of $677 thousand of accumulated other comprehensive income.
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, 1998, the Company's
Tier 1 Capital to risk-weighted assets ratio was 20.14% and the Total Capital
to risk-weighted assets ratio was 21.39%.
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 quality, 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,
1998 1997 1997
(in thousands), except ratios --------- --------- ---------
Tier 1 Capital
Common Stockholders' Equity $32,043 $27,868 $27,420
Tier 2 Capital
Reserve for Possible Loan Losses 1,989 1,773 1,736
--------- --------- ---------
Total Qualifying Capital $34,032 $29,641 $29,156
========= ========= =========
Risk Weighted Assets $159,081 $140,025 $138,875
========= ========= =========
Tier 1 Capital Ratio 20.14% 19.90% 19.74%
Total Capital Ratio 21.39% 21.17% 20.99%
Tier 1 Leverage Ratio 10.51% 9.59% 9.54%
Common Stock Dividends
For the third quarters of 1998 and 1997, 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 54.36% during the 1998 third quarter
and 53.70% during the 1997 third quarter. Cash on hand and due from banks
averaged $18,230 thousand in the 1998 third quarter and $16,600 thousand in
the 1997 third quarter. Federal Funds sold averaged $25,793 thousand in the
1998 third quarter and $21,739 thousand in the 1997 third quarter.
At September 30, 1998, investment securities at amortized cost, totaled
$128,565 thousand, of which $53,726 thousand or 42% mature or reprice
within one year, $55,561 thousand or 43% mature or reprice within two to
five years, and $19,278 thousand or 15% 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
In December, 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 a member of both and substantially revised statu-
tory provisions, including capital standards. FDICIA provided 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 May 1,
1995, the FDIC revised the BIF assessment rates from 0.23% to 0.04% for the
highest rated banks while retaining 0.31% for the weakest banks when the BIF
became fully funded. The BIF rate schedule was reduced to 0.0% for healthiest
banks to 0.27% for the weakest banks effective January 1, 1996. SAIF assess-
ment rates were 0.23% for the healthiest banks to 0.31% for the weakest banks
until October 1, 1996, whereby provisions of the Deposit Insurance Funds Act of
1996 ("Funds") reduced the rates to 0.0% for the healthiest banks to 0.27% for
the weakest Oakar SAIF banks. Also, effective October 1, 1996, under the Funds
Act, a one time assessment was made on all SAIF insured institutions and all
BIF insured banks with Oakar deposits to fully fund the SAIF. The Funds 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% for 1998 and 0.648% under SAIF for 1998. Minden Bank has
$35,834,110 of deposits in 1998 insured under SAIF as the result of the acqui-
sition in 1994 of the Minden branch of the failed Oak Tree Federal Savings Bank,
and the 1997 acquisition of First Federal Savings Bank.
<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, 1998 and 1997
(Thousands)
1998 1997
------------------------------- -------------------------------
Average Rate Average Rate
Balance Interest (Annualized) Balance Interest (Annualized)
--------- -------- ------------ --------- -------- ------------
ASSETS
Interest Bearing Balances Due from Banks $7,423 $93 4.97% $6,157 $72 4.64%
Federal Funds Sold 25,793 352 5.41% 21,739 298 5.44%
Investment Securities <F4> 113,445 1,759 6.15% 110,201 1,742 6.27%
Federal Reserve Bank and
Federal Home Loan Bank Stocks 1,507 23 6.06% 1,273 20 6.23%
Loans 141,803 3,439 9.62% 134,351 3,265 9.64%
--------- -------- ------- --------- -------- -------
Total Interest-
Earning Assets <F4> 289,971 $5,666 7.75% 273,721 $5,397 7.82%
-------- ------- -------- -------
Allowance for Loan Losses (3,546) (3,595)
Cash and Due from Banks 10,807 10,443
Other Assets <F4> 10,994 10,432
--------- ---------
Total Assets $308,226 $291,001
========= =========
LIABILITIES
Savings and Interest-
Bearing Demand $86,878 $631 2.88% $79,501 $574 2.86%
Time Deposits 127,366 1,670 5.20% 128,123 1,698 5.26%
--------- -------- ------- --------- -------- -------
Total Interest-
Bearing Deposits 214,244 2,301 4.26% 207,624 2,272 4.34%
Securities Sold Under
Repurchase Agreements 10,676 134 4.98% 8,340 90 4.28%
Long-Term Debt 0 0 0.00% 90 2 8.75%
--------- -------- ------- --------- -------- -------
Total Interest-
Bearing Liabilities 224,920 $2,435 4.30% 216,054 $2,364 4.34%
-------- ------- -------- -------
Demand Deposits 46,608 42,548
Other Liabilities 1,973 1,951
--------- ---------
Total Liabilities 273,501 260,553
STOCKHOLDERS' EQUITY
Common Stockholders' Equity 34,725 30,448
--------- ---------
Total Liabilities and
Stockholders' Equity <F4> $308,226 $291,001
========= =========
SPREAD ON INTEREST-BEARING FUNDS <F4> 3.45% 3.48%
======= =======
NET INTEREST INCOME AND NET
YIELD ON INTEREST-EARNING ASSETS <F4> $3,231 4.42% $3,033 4.40%
======== ======= ======== =======
<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, 1998 and 1997
(Thousands)
1998 1997
------------------------------- -------------------------------
Average Rate Average Rate
Balance Interest (Annualized) Balance Interest (Annualized)
--------- -------- ------------ --------- -------- ------------
ASSETS
Interest Bearing Balances Due from Banks $6,247 $255 5.46% $4,629 $154 4.45%
Federal Funds Sold 21,238 855 5.38% 18,645 754 5.41%
Investment Securities <F5> 113,236 5,288 6.24% 104,424 4,860 6.22%
Federal Reserve Bank and
Federal Home Loan Bank Stocks 1,469 66 6.00% 1,219 60 6.58%
Loans 140,717 10,033 9.53% 125,993 9,084 9.64%
--------- -------- ------- --------- -------- -------
Total Interest-
Earning Assets 282,907 $16,497 7.80% 254,910 $14,912 7.82%
-------- ------- -------- -------
Allowance for Loan Losses (3,573) (3,465)
Cash and Due from Banks 11,148 10,574
Other Assets <F5> 10,854 9,263
--------- ---------
Total Assets $301,336 $271,282
========= =========
LIABILITIES
Savings and Interest-
Bearing Demand $85,362 $1,849 2.90% $78,916 $1,692 2.87%
Time Deposits 125,863 4,920 5.23% 114,258 4,477 5.24%
--------- -------- ------- --------- -------- -------
Total Interest-
Bearing Deposits 211,225 6,769 4.28% 193,174 6,169 4.27%
Securities Sold Under
Repurchase Agreements 10,548 374 4.74% 7,139 228 4.27%
Long-Term Debt 0 0 0.00% 90 6 8.91%
--------- -------- ------- --------- -------- -------
Total Interest-
Bearing Liabilities 221,773 $7,143 4.31% 200,403 $6,403 4.27%
--------- -------- ------- --------- -------- -------
Demand Deposits 44,391 39,907
Other Liabilities 1,747 1,682
--------- ---------
Total Liabilities 267,911 241,992
STOCKHOLDERS' EQUITY
Common Stockholders' Equity <F5> 33,425 29,290
--------- ---------
Total Liabilities and
Stockholders' Equity $301,336 $271,282
========= =========
SPREAD ON INTEREST-BEARING FUNDS 3.49% 3.55%
======= =======
NET INTEREST INCOME AND NET
YIELD ON INTEREST-EARNING ASSETS $9,354 4.42% $8,509 4.46%
======== ============ ======== ============
<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 9, 1998 BY:s/ Jack E. Byrd, Jr.
-----------------------------
Jack E. Byrd, Jr.
President and CEO
November 9, 1998 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, 1998 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-31-1998
<PERIOD-END> SEP-30-1998
<EXCHANGE-RATE> 1
<CASH> 14,711
<INT-BEARING-DEPOSITS> 3,860
<FED-FUNDS-SOLD> 18,000
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 109,772
<INVESTMENTS-CARRYING> 18,298
<INVESTMENTS-MARKET> 18,834
<LOANS> 142,382
<ALLOWANCE> 3,537
<TOTAL-ASSETS> 311,993
<DEPOSITS> 262,880
<SHORT-TERM> 0
<LIABILITIES-OTHER> 11,067
<LONG-TERM> 0
0
0
<COMMON> 775
<OTHER-SE> 35,294
<TOTAL-LIABILITIES-AND-EQUITY> 311,993
<INTEREST-LOAN> 10,033
<INTEREST-INVEST> 5,101
<INTEREST-OTHER> 1,109
<INTEREST-TOTAL> 16,243
<INTEREST-DEPOSIT> 6,769
<INTEREST-EXPENSE> 7,143
<INTEREST-INCOME-NET> 9,100
<LOAN-LOSSES> 0
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 4,916
<INCOME-PRETAX> 6,125
<INCOME-PRE-EXTRAORDINARY> 4,199
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 4,199
<EPS-PRIMARY> 14.97
<EPS-DILUTED> 14.97
<YIELD-ACTUAL> 4.42
<LOANS-NON> 313
<LOANS-PAST> 995
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 3,603
<CHARGE-OFFS> 303
<RECOVERIES> 237
<ALLOWANCE-CLOSE> 3,537
<ALLOWANCE-DOMESTIC> 3,537
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
