FORM 10-QSB
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
[x] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended December 31, 1996
OR
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(D) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from _________ to _________
Commission File Number 0-25486
St. Landry Financial Corporation
(Exact name of small business issuer as specified in its charter)
Delaware 72-1284436
(State or other jurisdiction of (IRS Employer Identification No.)
incorporation or organization)
Post Office Box 72, Opelousas, Louisiana 70571-0072
(Address of principal executive offices)
(Zip Code)
(318) 942-5748
(Issuer's telephone number, including area code)
Check whether the issuer (1) filed all reports required to be filed by
Section 13 or 15 of the Securities Exchange Act of 1934 during the past 12
months (or 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 No X
----- -----
State the number of shares outstanding of each of the issuers classes
of common equity, as of the latest practicable date:
Common Stock, par value $.01 per share 459,093
- -------------------------------------- ----------------------------------
Class (Outstanding at December 31, 1996)
Transitional Small Business Disclosure Format:
Yes No X
----- -----
<PAGE>
ST. LANDRY FINANCIAL CORPORATION
INDEX
Page Number
PART I. FINANCIAL INFORMATION
Item 1. Consolidated Financial Statements
Consolidated Statement of Financial Condition,
September 30, 1996 and December 31, 1996 1
Consolidated Statement of Operations, Quarters
Ended December 31, 1995 and 1996 2
Consolidated Statement of Changes in Stockholder's
Equity 3
Consolidated Statement of Cash Flows,
Three months Ended December 31, 1995 and 1996 4-5
Notes to Consolidated Financial Statements 6
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 7-13
PART II. OTHER INFORMATION
Item 1. Legal Proceedings 14
Item 2. Changes Upon Securities 14
Item 3. Defaults Upon Senior Securities 14
Item 4. Submission of Matters to a Vote of Security Holders 14
Item 5. Other Information 14
Item 6. Exhibits and Reports on Form 8-K 14
SIGNATURES 15
<PAGE>
ST. LANDRY FINANCIAL CORPORATION
OPELOUSAS, LOUISIANA
STATEMENTS OF FINANCIAL CONDITION
<TABLE>
<CAPTION>
September 30, December 31,
1996 1996
------------- ------------
<S> <C> <C>
ASSETS
Cash and cash equivalents $ 385,363 $ 570,734
Investment securities - available for sale 1,773,450 1,825,679
Investment securities - held to maturity 989,595 990,498
Mortgage-backed securities - available for sale 9,484,872 9,719,022
Mortgage-backed securities - held to maturity 2,854,260 2,780,557
Federal Home Loan Bank stock 444,300 437,800
Loans receivable, net 39,856,672 40,300,321
Accrued interest receivable 264,365 280,084
Foreclosed real estate, net of allowance 97,827 71,537
Premises and equipment 605,178 628,591
Other assets 100,774 29,946
----------- -----------
Total assets $56,856,656 $57,634,769
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Deposits $41,985,963 $42,889,146
Advances from Federal Home Loan Bank 7,561,322 7,551,622
Advances by borrowers for taxes and insurance 92,468 94,634
Federal income taxes:
Currently payable --- ---
Deferred payable 37,127 66,591
Accrued expenses and other liabilities 476,528 205,981
----------- -----------
Total liabilities 50,153,408 50,807,974
----------- -----------
Stockholders' Equity:
Common stock, $.01 par value, 1,500,000 shares
authorized; 459,093 shares outstanding 4,591 4,591
Preferred stock, $.01 par value, 500,000 shares
authorized; 0 shares outstanding --- ---
Additional paid in capital 3,347,621 3,347,621
Treasury Stock, 22,955 shares (350,561) (350,561)
Unearned ESOP shares (228,624) (228,624)
Unearned Recognition and Retention Plan shares (291,153) (291,153)
Retained Earnings 4,049,776 4,116,128
Net unrealized gain on available-for-sale securities 171,598 228,793
----------- -----------
Total stockholders' equity 6,703,248 6,826,795
----------- -----------
Total liabilities and stockholders' equity $56,856,656 $57,634,769
=========== ===========
</TABLE>
1
<PAGE>
ST LANDRY FINANCIAL CORPORATION
OPELOUSAS, LOUISIANA
STATEMENTS OF INCOME
<TABLE>
<CAPTION>
Quarter Ended December 31
-----------------------------
1995 1996
-------- --------
<S> <C> <C>
INTEREST INCOME
Loans receivable
First mortgage loans $727,611 $ 779,254
Savings account loans 14,141 11,909
Consumer loans 9,980 19,391
Investment securities 49,459 39,201
Mortgage-backed securities 175,575 194,937
-------- ----------
Total interest income 976,766 1,044,692
-------- ----------
INTEREST EXPENSE
Deposits 489,617 501,877
Borrowed funds 45,891 104,610
Total interest expense 535,508 606,487
-------- ----------
Net interest income 441,258 438,205
-------- ----------
PROVISION FOR LOAN LOSSES 20,000 --
-------- ----------
Net interest income after provision
for loan losses 421,258 438,205
-------- ----------
NON-INTEREST INCOME
Service charges and other fees 3,647 5,210
Insurance commissions 6,525 6,168
REO operations 286 --
Other 383 181
-------- ----------
Total non-interest income 10,841 11,559
-------- ----------
NON-INTEREST EXPENSE
General and administrative:
Compensation and benefits 178,831 180,716
Occupancy and equipment 30,116 31,605
Marketing and other professional services 20,352 23,789
Deposit insurance premium 24,648 24,907
Net loss (gain) on foreclosed real estate --- 689
Real estate owned expense --- 1,297
Other 40,795 84,409
-------- ----------
Total non-interest expense 294,742 347,412
-------- ----------
Income before income taxes 137,357 102,352
INCOME TAX EXPENSE 40,000 36,000
-------- ----------
NET INCOME $ 97,357 $ 66,352
======== ==========
EARNINGS PER COMMON SHARE $0.23 $0.17
===== =====
</TABLE>
See accompanying notes to unaudited consolidated financial statements
2
<PAGE>
ST LANDRY FINANCIAL CORPORATION
OPELOUSAS, LOUISIANA
STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
Three Months Ended December 31,
-------------------------------
1995 1996
-------- --------
<S> <C> <C>
CASH FLOW FROM OPERATING ACTIVITIES
Net income $ 97,357 $ 66,352
Adjustments to reconcile net income to net
cash provided by operating activities:
Amortization of premiums and discounts on loans
and mortgage-backed and related securities 9,455 9,726
Provision for loan losses 20,000 --
Deferred loan fees (884) 1,670
Depreciation of premises and equipment 6,000 7,800
Net loss(gain) on sale of real estate owned 690 --
Net gain on fixed assets -- --
(Increase) decrease in accrued interest
receivable (25,016) (15,719)
(Increase) decrease in other assets 30,816 70,828
Increase (decrease) in income taxes payable 85,909 --
Increase (decrease) in accrued expenses
and other liabilities (8,603) (270,547)
-------- --------
Net cash provided (used) by operating
activities 215,034 (129,200)
-------- --------
CASH FLOW FROM INVESTING ACTIVITIES
Loan originations net of principal repayments (936,304) (420,638)
Maturity of investment securities - held to
maturity -- --
Purchase of Federal Home Loan Bank stock 6,600 6,500
Purchase of mortgage-backed securities-available
for sale -- (510,410)
Principal repayments of mortgage-backed
securities-available for sale 346,836 304,966
Principal repayments of mortgage-backed
securities-held to maturity 212,424 73,425
Investment in foreclosed real estate (2,655) (6,958)
Proceeds from sale of real estate -- 3,250
Purchases of premises and equipment (83,872) (31,213)
--------- --------
Net cash provided (used) by investing
activities (456,971) (581,078)
--------- --------
CASH FLOWS FROM FINANCING ACTIVITIES
Net increase (decrease) in deposits $(267,945) $903,183
Increase (decrease) in advances from FHLB 561,905 (9,700)
Increase (decrease) in mortgage escrow funds (8,258) 2,166
Proceeds from sale of common stock -- --
Purchase of treasury stock -- --
Cash dividend paid -- --
--------- --------
Net cash provided (used) by financing
activities 285,702 895,649
--------- --------
NET INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS 43,765 185,371
CASH AND CASH EQUIVALENTS, beginning of period 140,139 140,139
--------- --------
CASH AND CASH EQUIVALENTS, end of period 183,904 325,510
========= ========
</TABLE>
3
<PAGE>
ST LANDRY FINANCIAL CORPORATION
OPELOUSAS, LOUISIANA
STATEMENTS OF CASH FLOWS
Three Months Ended December 31,
-------------------------------
1995 1996
-------- --------
SUPPLEMENTAL SCHEDULE OF NONCASH
INVESTING ACTIVITIES
Loans originated to facilitate the sale of
real estate owned $ -- $ 29,250
======== ========
Loan principal reductions resulting from
foreclosures on real estate owned $ 95,443 $ --
======== ========
Increase in unrealized gain (loss) on
securities available-for-sale, net of
applicable deferred income taxes $ 59,599 $ 57,195
======== ========
SUPPLEMENTAL SCHEDULE OF INTEREST
AND TAXES PAID
Interest paid $542,114 $619,093
======== ========
Taxes paid $ -- $ --
======== ========
See accompanying notes to unaudited consolidated financial statements
4
<PAGE>
ST LANDRY FINANCIAL CORPORATION
OPELOUSAS, LOUISIANA
STATEMENT OF CHANGES IN STOCKHOLDER'S EQUITY
<TABLE>
<CAPTION>
December 31, 1996
----------------------------------------------------------------------------------------
Unallocated Total
Common Treasury Retained ----------------------- Unrealized Shareholders'
Stock Stock Earnings ESOP Shares RRP Shares Gain (Loss) Equity
--------- -------- ---------- ----------- ---------- ----------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
Balance October 1, 1996 3,352,212 (350,561) 4,049,776 (228,624) (291,153) 171,598 6,703,248
Net change in unrealized gain (loss) on
available-for-sale securities -- -- -- -- -- 57,195 57,195
Net income for the three months
ended December 31, 1996 -- -- 66,352 -- -- 66,352 66,352
--------- -------- --------- -------- -------- ------- ---------
Balance December 31, 1996 3,352,212 (350,561) 4,116,128 (228,624) (291,153) 228,793 6,826,795
========= ======== ========= ======== ======== ======= =========
</TABLE>
5
<PAGE>
ST. LANDRY FINANCIAL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1--Basis of Presentation
The financial statements included in this report have been prepared by St.
Landry Financial Corporation (the "Company") pursuant to the rules and
regulations of the Securities and Exchange Commission for interim reporting and
include all adjustments which are, in the opinion of management, necessary for
fair presentation. These financial statements have not been audited by an
independent accountant.
Certain information and note disclosures normally included in financial
statements in accordance with generally accepted accounting principles have been
condensed or omitted pursuant to such rules and regulations. It is suggested
that these financial statements be read in conjunction with the financial
statements and notes presented in Form 10-KSB filed for the fiscal year ended
September 30, 1996. St. Landry Financial Corporation believes that the
disclosures are adequate to make the information presented not misleading. The
financial data and results of operations for the interim periods presented may
not necessarily reflect the results to be anticipated for the complete year.
NOTE 2--Earnings Per Share
For purpose of calculating earnings per common share the weighted
average number of shares outstanding, excluding unallocated ESOP shares and
unallocated Recognition and Retention Plan shares, was used. The weighted
average number of shares outstanding for the period ended December 31, 1996 was
426,024 (459,093 of outstanding shares reduced by 33,069 unallocated ESOP
shares). The weighted average number of shares outstanding for the period ended
December 31, 1996 presented was 389,196 (436,138 of the weighted average number
of outstanding shares reduced by 28,578 unallocated ESOP shares and 18,364
unallocated Recognition and Retention Plan shares).
6
<PAGE>
ITEM 2--MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
GENERAL
The principle business of the Company is that of a community-oriented
financial intermediary attracting deposits from the general public and using
such deposits to originate one-to-four family residential loans, and to a lesser
extent, commercial real estate, one-to-four family construction, multi-family
and consumer loans. These funds have also been used to purchase mortgage-backed
securities, U.S. government and agency obligations and other permissible
securities.
The Company's results of operations are dependent primarily on net
interest income, which is the difference between the income earned on its loan
and investment portfolios and the interest paid on deposits and borrowings.
Results of operations are also dependent upon the Company's provision for loan
losses, the level of non-interest income, including fee income and service
charges, and the level of its non-interest expenses, including employee
compensation, occupancy expenses, federal insurance premiums and other general
and administrative expenses. The Company's results of operations are also
significantly affected by general economic and competitive conditions,
particularly changes in interest rates, government policies and actions of
regulatory authorities.
The Company's cost of funds is influenced by interest rates on
competing investments and general market rates of interest. Lending activities
are influenced by the demand for real estate loans and other types of loans,
which is in turn affected by the interest rates at which such loans are made,
general economic conditions affecting loan demand, the availability of funds for
lending activities, and changes in real estate values.
FINANCIAL CONDITION
The Company's total assets were $56.9 million at September 30, 1996 as
compared to $57.6 million at December 31, 1996. The 1.0% increase in assets over
the three month period is a direct result of increased cash and cash
equivalents, loan originations exceeding principal repayments and purchases of
mortgage backed securities.
Net loans receivable increased by $444,000 from $39.8 million at
September 30, 1996 to $40.3 million at December 31, 1996. The increase was due
to an increase in originations, in conjunction with a decrease in principal
repayments.
Total investment securities increased by $53,000 from $2.7 million at
September 30, 1996 to $2.8 million at December 31, 1996. The increase was due to
an increase in the unrealized gain on investment securities-available for sale
totaling $52,000 and a $1,000 accretion of discounts paid on investment
securities. The total gain in stock in Federal Home Loan Mortgage Corporation
was $413,000 and the loss on stock in adjustable rate mortgage portfolio was
$2,000, which is included in investment securities-available for sale.
7
<PAGE>
The Association experienced a $160,000 increase in mortgage-backed
securities during the three month period ending December 31, 1996. Unrealized
losses recorded in the mortgage-backed securities-available for sale portfolio
amounted to $98,000 and $64,000, for September 30, 1996 and December 31, 1996,
respectively. The loss declined by $34,000 over the three month period.
Additional mortgage-backed securities were purchased totalling $510,000, during
the period, partially offset by principal repayments, amortization of premiums,
and accretion of discounts.
Deposits increased by $903,000 from $41.9 million at September 30, 1996
to $42.8 million at December 31, 1996. The increase was due to additional monies
deposited in time deposit certificates emphasizing six to twelve month
maturities.
Federal Home Loan Bank advances remained constant at $7.5 million at
September 30, 1996 and at December 31, 1996. Borrowing proceeds are used to fund
a portion of loan originations, and purchase mortgage-backed securities.
Total stockholders' equity increased by $123,000 from $6,703,000 at
September 30, 1996 to $6,827,000 at December 31, 1996. Stockholders' equity
increased by $57,000, as a result of an after-tax net unrealized gain on
investment securities-available for sale and mortgage-backed
securities-available for sale. In addition to the unrealized gain reflected in
equity, net income for the three month period increased total stockholders'
equity by $66,000.
ASSET QUALITY
Non-performing Loans and Investments in Real Estate
The table below sets forth the amounts and categories of non-performing
assets in the Company's loan portfolio, rounded to the thousands. Loans are
placed on non-accrual status when the collection of principal and/or interest
becomes doubtful. At the dates presented, the Company had no accruing loans
which were contractually past due 90 days or more and no troubled debt
restructuring (which involve forgiving a portion of interest or principal on any
loans or making loans at a rate materially less than that of market rates).
Foreclosed assets include assets acquired in settlement loans.
8
<PAGE>
September 30, December 31,
1996 1996
------------- ------------
Non-Performing Assets
Non-accruing loans:
One-to four-family $623 $522
Consumer 184 148
Total 807 670
Foreclosed assets:
One-to four-family 131 105
Total non-performing assets 938 775
Total as a percentage of
total assets 1.65% 1.34%
Non-performing assets decreased by $163,000 over the three month period
ended December 31, 1996, due to a decline in non-accruing loans of $137,000 and
a decrease of $26,000 in real estate owned.
Allowance for Losses on Loans and Real Estate Owned
The allowance for loan losses is established through a provision for
loan losses based on management's evaluation of the risk inherent in its loan
portfolio and changes in the nature and volume of its loan activity, including
those loans which are being specifically monitored by management. Such
evaluation, which includes a review of loans for which full collectibility may
not be reasonably assured, considers among other matters, the estimated fair
value of the underlying collateral, economic conditions, historical loan loss
experience and other factors that warrant recognition in providing for an
adequate loan loss allowance.
Real estate properties acquired through foreclosure are recorded at
lower of cost or fair value, less estimated disposition costs. If fair value at
the date of foreclosure is lower than the balance of the related loan, the
difference will be charged-off to the allowance for loan losses at the time of
transfer. Valuations are periodically updated by management and if the value
declines, a specific provision for losses on such property is established by a
charge to operations.
The Company's allowance for loan losses totaled $580,000 and $556,000,
for September 30, 1996 and December 31, 1996, respectively. Allowance for loan
losses as a percentage of net loans receivable equaled 1.46% at September 30,
1996 and 1.38% at December 31, 1996.
9
<PAGE>
RESULTS OF OPERATIONS
Comparison of Operating Results for the Quarters Ended December 31, 1995
and 1996
General. The Company had net income of $97,000 for the three months
ended December 31, 1995, as compared to $66,000 for the three months ended
December 31, 1996. The decrease in net income of $31,000 was primarily due to an
increase in total non-interest expense of $53,000. This increase was partially
offset by an increase in net interest income of $17,000, an increase in total
non-interest income of $1,000 and a decrease in income taxes of $4,000.
Interest Income. Interest income increased by $68,000 from $977,000 for
the three months ended December 31, 1995 to $1,045,000 for the three months
ended December 31, 1996. The $68,000 increase was due primarily to the increase
in loans receivable of approximately 1.6 million, resulting in an increase in
interest on loans of $59,000. The increase of $19,000 in interest earned on
mortgage backed securities was due to an increase of $1.0 million. This increase
was partially offset by a decrease of $10,000 on investment securities which
decreased by $330,000 over the comparable periods.
Interest Expense. Interest expense increased by $70,000 from $536,000
for the three months ended December 31, 1995 to $606,000 for the three months
ended December 31, 1996. This was due primarily to the increased cost of funds.
Cost of funds increased because of increased Federal Home Loan Bank borrowings
outstanding during the three months at a cost higher than deposit accounts, and
the overall increase in interest rates paid on deposits as compared to the prior
year. Total interest-bearing liabilities increased from $46.2 million during the
three months ended December 31, 1995 to $50.6 million at December 31, 1996. The
weighted average cost of funds was 4.70% and 4.95% at December 31, 1995 and
1996, respectively. Consequently, increased interest-bearing liabilities, in
conjunction with increased funding cost, caused an incline of interest expense
for the quarter ended December 31, 1996, as compared to the quarter ended
December 31, 1995.
Net Interest Income. The Company's net income is dependent upon net
interest income. Net interest income is the difference between the yield on
interest-earning assets and the cost of interest-bearing liabilities. Net
interest income decreased by $3,000 from $441,000 for the three months ended
December 31, 1995 to $438,000 for the three months ended December 31, 1996. The
decrease was due to the increase in the cost of interest-bearing liabilities
which was in excess of increased earnings in interest-earning assets.
Provision for Loan Losses. The provision for loan losses was $20,000
for the three months ended December 31, 1995. Additional provision for loan
losses was not deemed necessary for the three months ended December 31, 1996.
Non-performing assets were $938,000 and $775,000 at December 31, 1995 and 1996,
respectively. Non-performing assets as a percentage of total assets were 1.65%
and 1.34% at December 31, 1995 and 1996, respectively.
Management and the Board of Directors review the loan loss reserve
monthly to determine sufficiency. The allowance for loan losses is established
through a provision for loan losses based on management's evaluation of the risk
inherent in its loan portfolio and changes
10
<PAGE>
in the nature and volume of its loan activity, including those loans which are
being specifically monitored by management. Such evaluation, which includes a
review of loans for which full collectibility may not be reasonably assured,
considers among other matters, the estimated fair value of the underlying
collateral, economic conditions, historical loan loss experience and other
factors that warrant recognition in providing for an adequate loan loss
allowance.
Non-interest Income. Non-interest income increased by $1,000 from
$11,000 for the quarter ended December 31, 1995 to $12,000 for the quarter ended
December 31, 1996. The increase was due to more service charges and partially
offset by a decrease in insurance commissions and REO operations.
Non-interest Expense. Total non-interest expense increased by $53,000
from $295,000 for the three months ended December 31, 1995 to $348,000 for the
three months ended December 31, 1996. There were increases in employee
compensation of $2,000, occupancy and equipment of $1,000, marketing and other
professional services of $4,000, real estate owned of $2,000 and other expenses
of $43,000. The increase in other expenses was due primarily to an additional
$26,000 in property taxes as a result of being a stock company.
Income Tax Provision. Income tax expense decreased by $4,000 for the
quarter ended December 31, 1996 as compared to the quarter ended December 31,
1995 due to a decrease in pre-tax income.
Liquidity and Capital Resources
The Company's primary sources of funds are deposits, borrowings,
principal and interest payments on loans, mortgage-backed securities, and
investment securities. In the event that the Company should require funds beyond
its ability to generate them internally, additional sources of funds are
available through the use of FHLB advances. While scheduled loan repayments and
maturing investments are relatively predictable, deposit flows and early loan
repayments are more influenced by interest rates, general economic conditions
and competition.
Federal regulations have required the Company to maintain minimum
levels of liquid assets. The required percentage has varied from time to time
based upon economic conditions and savings flows and is currently 5% of net
withdrawable savings deposits and borrowings payable on demand or in one year or
less during the preceding calendar month. Liquid assets for purposes of this
ratio include cash, certain time deposits, government agency and other
securities and obligations generally having remaining maturities of less than
five years. The Association's most liquid assets are cash and cash equivalents,
short-term investments and mortgage-backed and related securities. The levels of
these assets are dependent on the Company's operating, financing, lending and
investing activities during any given period. At September 30, 1996 and December
31, 1996 liquidity eligible assets totaled $3.2 million and $3.6 million,
respectively. At those same dates, the Association's liquidity ratios were 6.5%
and 7.2%, respectively, all in excess of the 5% minimum regulatory requirement.
Management anticipates a somewhat lower liquidity ratio in future periods, due
to funding needs for outstanding loan commitments.
11
<PAGE>
The Association uses its liquid resources principally to meet ongoing
commitments, to fund maturing certificates of deposit and deposit withdrawals,
to invest, to fund existing and future loan commitments, to maintain liquidity
and to meet operating expenses. At December 31, 1996 the Association had
outstanding commitments to extend credit which amounted to $358,000. Management
believes that loan repayments and other sources of funds will be adequate to
meet the Association's foreseeable liquidity needs.
At December 31, 1996, the Company had $26.3 million in certificates of
deposit due within one year and $11.4 million in other deposits without specific
maturity. Based on past experience, management expects that most of the deposits
will be retained or replaced by new deposits.
Capital
Federally insured savings associations, such as First Federal, are
required to maintain a minimum level of regulatory capital. The OTS has
established capital standards, including a tangible capital requirement, a
leverage ratio (or core capital) requirement and a risk-based capital
requirement applicable to such savings associations. These capital requirements
must be generally as stringent as the comparable capital requirements for
national banks. The OTS is also authorized to impose capital requirements in
excess of these standards on individual associations on a case-by-case basis.
The following table sets forth First Federal's compliance with each of
its capital requirements as of December 31, 1996 (dollars in thousands).
Current Capital Actual Association
Requirement Capital Capital Excess
-------------- -------------- --------------
Amount % Amount % Amount %
------ ---- ------ ---- ------ ----
Tangible Capital 861 1.50% 5,577 9.71% 4,716 8.21%
Core Capital 1,722 3.00% 5,577 9.71% 3,855 6.71%
Risk-Based Capital 2,551 8.00% 5,914 18.55% 3,363 10.55%
Tangible and core capital figures are determined as a percentage of
total adjusted assets; risk-based capital figures are determined as a percentage
of risk-weighted assets in accordance with OTS regulations.
Total capital includes general loan loss reserves of $337,000.
The OTS and the Federal Deposit Insurance Corporation are authorized
and, under certain circumstances required, to take certain actions against
associations that fail to meet capital requirements. Effective December 19,
1992, the federal banking agencies, including OTS, have been given additional
enforcement authority over undercapitalized depository institutions. The OTS is
generally required to take action to restrict the activities of an
"undercapitalized association" (generally defined to be one with less than
either a 4% core ratio, a Tier 1 risked-
12
<PAGE>
based capital ratio or an 8% risk-based capital ratio). Any such association
must submit a capital restoration plan and until such plan is approved by the
OTS may not increase its assets, acquire another institution, establish a branch
or engage in any new activities, and generally may not make capital
distributions. The OTS is authorized to impose the additional restrictions,
discussed below, that are applicable to significantly undercapitalized
associations.
Any savings association that fails to comply with its capital plan or
is "significantly undercapitalized" (i.e., Tier 1 risk-based or core capital
ratios of less than 3% or a risk-based capital ratio of less than 6%) must be
subject to one or more additional specified actions and operating restrictions
mandated by federal law. First Federal is considered a well capitalized
institution based upon its capital ratios at December 31, 1996.
13
<PAGE>
PART II--OTHER INFORMATION
Item 1. Legal Proceedings
There are no material legal proceedings to which the Company or the
Association is party to or of which any of their property is subject.
Occasionally, the Association is involved in legal proceedings incidental to its
business.
Item 2. Changes in Securities
Not Applicable
Item 3. Defaults Upon Senior Securities
Not Applicable
Item 4. Submission of Matters to a Vote of Security Holders
Not Applicable
Item 5. Other Information
Not Applicable
Item 6. Exhibits and Report on Form 8-K
(a) Exhibits
Not Applicable
(b) Reports on Form 8-K
Not Applicable
14
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
St. Landry Financial Corporation
(Registrant)
Date: February 13, 1997 /s/ Wayne McK Gilmore
----------------------------
Wayne McK. Gilmore
President
Date: February 13, 1997 /s/ Kathryn Chelette
----------------------------
Kathryn Chelette
Controller
15
<TABLE> <S> <C>
<ARTICLE> 9
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE ANNUAL
REPORT ON FORM 10-KSB FOR THE YEAR ENDED SEPTEMBER 30, 1996 AND IS QUALIFIED IN
ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> SEP-30-1996
<PERIOD-END> DEC-31-1996
<CASH> 302,582
<INT-BEARING-DEPOSITS> 268,152
<FED-FUNDS-SOLD> 0
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 11,544,701
<INVESTMENTS-CARRYING> 0
<INVESTMENTS-MARKET> 0
<LOANS> 40,300,321
<ALLOWANCE> 555,975
<TOTAL-ASSETS> 57,634,769
<DEPOSITS> 40,300,321
<SHORT-TERM> 6,400,000
<LIABILITIES-OTHER> 367,206
<LONG-TERM> 1,179,264
0
0
<COMMON> 2,481,874
<OTHER-SE> 4,344,921
<TOTAL-LIABILITIES-AND-EQUITY> 57,634,769
<INTEREST-LOAN> 810,554
<INTEREST-INVEST> 234,138
<INTEREST-OTHER> 0
<INTEREST-TOTAL> 1,044,692
<INTEREST-DEPOSIT> 501,877
<INTEREST-EXPENSE> 104,610
<INTEREST-INCOME-NET> 438,205
<LOAN-LOSSES> 0
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 347,412
<INCOME-PRETAX> 102,352
<INCOME-PRE-EXTRAORDINARY> 102,352
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 66,352
<EPS-PRIMARY> .17
<EPS-DILUTED> .17
<YIELD-ACTUAL> 0
<LOANS-NON> 549,576
<LOANS-PAST> 836,794
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 580,358
<CHARGE-OFFS> 24,383
<RECOVERIES> 0
<ALLOWANCE-CLOSE> 555,975
<ALLOWANCE-DOMESTIC> 0
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
