<PAGE>
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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 31,1997
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 X No
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 408,623
- ------------------------ ---------------------------------
Class (Outstanding at December 31, 1997)
Transitional Small Business Disclosure Format:
Yes No X
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ST. LANDRY FINANCIAL CORPORATION
INDEX
Page Number
PART I. FINANCIAL INFORMATION
Item 1. Consolidated Financial Statements
Consolidated Statement of Financial Condition,
September 30, 1997 and December 31, 1997 1
Consolidated Statement of Operations,
Quarters Ended December 31, 1996 and 1997 2
Consolidated Statement of Changes in Stockholder's Equity 3
Consolidated Statement of Cash Flows,
Three months Ended December 31, 1996 and 1997 4-5
Notes to Consolidated Financial Statements 6-7
Item 2.Management's Discussion and Analysis of
Financial Condition and Results of Operations 8-13
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
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<TABLE>
<CAPTION>
ST LANDRY FINANCIAL CORPORATION
OPELOUSAS, LOUISIANA
STATEMENTS OF FINANCIAL CONDITION
SEPTEMBER 30, 1997 AND DECEMBER 31, 1997
SEPTEMBER 30, DECEMBER 31,
1997 1997
------------- -------------
<S> <C> <C>
ASSETS
Cash and cash equivalents $ 780,554 $ 535,590
Investment securities - available for sale 1,952,316 2,052,259
Investment securities - held to maturity 1,088,124 1,589,243
Mortgage-backed securities - available for sale 12,505,148 13,627,430
Mortgage-backed securities - held to maturity 1,607,964 1,469,210
Federal Home Loan Bank stock 549,100 558,000
Loans receivable, net 42,192,721 41,661,052
Accrued interest receivable 309,728 318,255
Foreclosed real estate, net of allowance 84,919 285,398
Premises and equipment 647,901 637,397
Other assets 97,208 86,529
----------- -----------
Total assets 61,815,683 62,820,363
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Deposits $43,577,912 $44,137,770
Advances from Federal Home Loan Bank 10,825,154 11,159,945
Advances by borrowers for taxes and insurance 84,727 79,232
Federal income taxes:
Currently payable 32,300
Deferred payable 226,948 252,294
Accrued expenses and other liabilities 247,101 185,247
----------- -----------
Total liabilities 54,961,842 55,846,788
----------- -----------
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 3,369,740 3,374,659
Treasury Stock, 50,470 shares (757,199) (757,199)
Unearned ESOP shares (194,288) (186,116)
Unearned RRP shares (230,027) (215,034)
Retained Earnings 4,315,189 4,357,637
Net unrealized gain on available-for-sale
securities 345,835 395,037
----------- -----------
Total stockholders' equity 6,853,841 6,973,575
----------- -----------
Total liabilities and stockholders' equity 61,815,683 62,820,363
=========== ===========
/TABLE
<PAGE>
<PAGE>
<TABLE>
<CAPTION>
ST LANDRY FINANCIAL CORPORATION
OPELOUSAS, LOUISIANA
STATEMENTS OF INCOME
QUARTERS ENDED DECEMBER 31, 1996 AND 1997
DECEMBER 31, DECEMBER 31,
1996 1997
------------ -----------
<S> <C> <C>
INTEREST INCOME
Loans receivable
First mortgage loans $ 779,254 $ $807,053
Savings account loans 11,909 9,897
Consumer loans 19,391 17,000
Investment securities 39,201 63,738
Mortgage-backed securities 194,937 218,557
---------- ----------
Total interest income 1,044,692 1,116,245
---------- ----------
INTEREST EXPENSE
Deposits 501,877 561,908
Borrowed funds 104,610 150,011
---------- ----------
Total interest expense 606,487 711,919
---------- ----------
Net interest income 438,205 404,326
PROVISION FOR LOAN LOSSES 0 0
---------- ----------
Net interest income after provision
for loan losses 438,205 404,326
---------- ----------
NON-INTEREST INCOME
Service charges and other fees 5,210 4,726
Insurance commissions 6,168 5,834
Other 181 253
---------- ----------
Total non-interest income 11,559 10,813
---------- ----------
NON-INTEREST EXPENSE
General and administrative
Compensation and benefits 180,716 216,558
Occupancy and equipment 31,605 34,275
Marketing and other professional services 23,789 31,413
Deposit insurance premium 24,907 6,752
Net loss (gain) on foreclosed real estate 689 (16,396)
Real estate owned expense 1,297 763
Other 84,409 47,769
---------- ----------
Total non-interest expense 347,412 321,134
---------- ----------
Income before income taxes 102,352 94,005
INCOME TAX EXPENSE 36,000 32,300
---------- ----------
NET INCOME 66,352 61,705
========== ==========
EARNINGS PER COMMON SHARE 0.17 0.16
========== ==========
DILUTED EARNINGS PER COMMON SHARE 0.17 0.17
========== ==========
/TABLE
<PAGE>
<PAGE>
<TABLE>
<CAPTION>
ST LANDRY FINANCIAL CORPORATION
OPELOUSAS, LOUISIANA
STATEMENTS OF CASH FLOWS
THREE MONTHS ENDED DECEMBER 31, 1996 AND 1997
DECEMBER 31 DECEMBER 31
1996 1997
----------- -----------
<S> <C> <C>
CASH FLOW FROM OPERATING ACTIVITIES
Net income $66,352 $61,705
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 9,726 19,763
Stock dividends on FHLB stock 6,500 0
Deferred loan fees 1,670 183
Depreciation of premises and equipment 7,800 11,200
Net loss(gain) on sale of real estate owned 690 0
Allocation of ESOP shares 0 12,761
Allocation of RRP shares 0 15,323
(Increase) decrease in accrued interest receivable (15,719) (8,527)
(Increase) decrease in other assets 70,828 10,679
Increase (decrease) in income taxes payable 0 32,300
Increase (decrease) in accrued expenses and other
liabilities (270,547) (61,854)
--------- -----------
Net cash provided (used) by operating activities (122,700) 93,533
--------- -----------
CASH FLOW FROM INVESTING ACTIVITIES
Loan originations net of principal repayments (420,638) 329,817
Purchase of investment securities - held to maturity 0 (500,273)
Purchase of Federal Home Loan Bank stock 0 (8,900)
Purchase of mortgage-backed securities-available for sale (510,410) (1,854,098)
Principal repayments of mortgage-backed securities-afs 304,966 691,646
Principal repayments of mortgage-backed securities-htm 73,425 140,745
Investment in foreclosed real estate (6,958) (6,635)
Proceeds from sale of real estate 3,250 0
Purchases of premises and equipment (31,213) (696)
--------- -----------
Net cash provided (used) by investing activities (587,578) (1,208,394)
--------- -----------
CASH FLOWS FROM FINANCING ACTIVITIES
Net increase (decrease) in deposits $903,183 $559,858
Increase (decrease) in advances from FHLB (9,700) 334,791
Increase (decrease) in mortgage escrow funds 2,166 (5,495)
Cash dividend paid 0 (19,257)
--------- -----------
Net cash provided (used) by financing activities 895,649 869,897
--------- -----------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS 185,371 (244,964)
CASH AND CASH EQUIVALENTS, beginning of period 140,139 780,554
--------- -----------
CASH AND CASH EQUIVALENTS, end of period 325,510 535,590
========= ===========
This statement continued on next page
/TABLE
<PAGE>
<PAGE>
<TABLE>
<CAPTION>
ST LANDRY FINANCIAL CORPORATION
OPELOUSAS, LOUISIANA
STATEMENTS OF CASH FLOWS
THREE MONTHS ENDED DECEMBER 31, 1996 AND 1997
DECEMBER 31, DECEMBER 31,
1996 1997
----------- ------------
<S> <C> <C>
SUPPLEMENTAL SCHEDULE OF NONCASH
INVESTING ACTIVITIES
Loans originated to facilitate the sale of real estate $29,250 $0
========= ===========
Loan principal reductions resulting from foreclosures on
real estate owned $0 $193,844
========= ===========
Increase in unrealized gain (loss) on securities
available-for-sale, net of applicable deferred income
taxes $57,195 $49,202
========= ===========
SUPPLEMENTAL SCHEDULE OF INTEREST
AND TAXES PAID
Interest paid $619,093 $550,880
========= ===========
Taxes paid $0 $0
========= ===========
See accompanying notes to unaudited consolidated financial statements
/TABLE
<PAGE>
<PAGE>
<TABLE>
<CAPTION>
ST LANDRY FINANCIAL CORPORATION
OPELOUSAS, LOUISIANA
STATEMENT OF CHANGES IN STOCKHOLDER'S EQUITY
DECEMBER 31, 1997
UNALLOCATED UNALLOCATED TOTAL
COMMON TREASURY RETAINED ESOP RRP UNREALIZED SHAREHOLDERS'
STOCK STOCK EARNINGS SHARES SHARES GAIN(L0SS) EQUITY
--------- --------- --------- ---------- ----------- ---------- -------------
<S> <C> <C> <C> <C> <C> <C> <C>
Balance October 1, 1997 3,374,331 (757,199) 4,315,189 (194,288) (230,027) 345,835 6,853,841
Allocation of earned RRP shares (2,232) 14,993 12,761
Allocation of earned ESOP shares
at fair value 7,151 8,172 15,323
Dividends Paid (19,257) (19,257)
Net change in unrealized gain
(loss) on available-for-sale
securities 49,202 49,202
Net income for the three months
ended December 31, 1997 61,705 61,705
--------- -------- --------- -------- -------- ------- ---------
Balance December 31, 1996 3,379,250 (757,199) 4,357,637 (186,116) (215,034) 395,037 6,973,575
========= ======== ========= ======== ======== ======= =========
/TABLE
<PAGE>
<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, 1997. 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
The Company adopted FAS 128, Earnings per Share, as of December 31, 1997.
Restatement of all prior years presented is required. FAS 128 replaces the
presentation of primary EPS with a presentation of basic EPS. The Statement
also requires dual presentation of basic and diluted EPS by companies with
complex capital structures, and requires a reconciliation of the numerator and
denominator of basic EPS to those for diluted EPS. Basic EPS includes no
dilution, and is computed by dividing income available to common shareholders
by the weighted-average number of shares outstanding during the period.
Diluted EPS reflects the potential dilution of securities such as, in the case
of the Company, options and restricted stock grants.
<TABLE>
<CAPTION>
Three months ended December 31, 1997
--------------------------------------------------
Income Shares Per-share
(Numerator) (Denominator) Amount
----------- ------------- ---------
<S> <C> <C> <C>
Basic EPS
Income available to common stockholders 61,705 371,838 $ 0.17
Effect of Dilutive Securities
Stock Options Outstanding 2,722
Restricted Stock Grants 3,820
Diluted EPS
Income available to common stockholders
plus assumed conversions 61,705 378,380 $ 0.16
</TABLE>
<PAGE>
<PAGE>
<TABLE>
<CAPTION>
Three months ended December 31, 1996
--------------------------------------------------
Income Shares Per-share
(Numerator) (Denominator) Amount
----------- ------------- ---------
<S> <C> <C> <C>
Basic EPS
Income available to common stockholders 66,352 389,734 $ 0.17
Effect of Dilutive Securities
Stock Options Outstanding 1,397
Restricted Stock Grants 3,732
Diluted EPS
Income available to common stockholders
plus assumed conversions 66,352 394,863 $ 0.17
/TABLE
<PAGE>
<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, along with borrowed funds through FHLB advances, 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 $61.8 million at September 30, 1997 as
compared to $62.8 million at December 31, 1997. The 1.0% increase in assets
over the three month period is a direct result of purchases of mortgage-backed
and investment securities.
Net loans receivable decreased by $600,000 from $42.2 million at September
30, 1997 to $41.6 million at December 31, 1997. The decrease was due to an
increase in principal repayments and due to foreclosure proceedings on three
properties.
Total investment securities increased by $601,000 from $3.0 million at
September 30, 1997 to $3.6 million at December 31, 1997. The increase was
primarily due to the purchase of a $500,000 investment and an increase in
unrealized gains on investment securities available for sale totaling
$100,000. This increase in unrealized gains on investment securities available
for sale was primarily due to favorable interest rates and increased market
prices on marketable securities held in the Company's portfolio.
<PAGE>
<PAGE>
The Company experienced a $984,000 increase in mortgage-backed securities
during the three month period ending December 31, 1997. Unrealized losses
recorded in the mortgage-backed securities-available for sale portfolio
amounted to $39,000 at December 31, 1997, a $26,000 increase from September
30, 1997. Additional mortgage-backed securities were purchased totalling $1.9
million, during the period, partially offset by principal repayments,
amortization of premiums, and accretion of discounts.
Deposits increased by $560,000 from $43.6 million at September 30, 1997 to
$44.1 million at December 31, 1997. The increase was due to additional monies
deposited in time deposit certificates based on the Association's emphasizing
certificates with six to twelve month maturities.
Federal Home Loan Bank advances increased by $335,000 from $10.8 million at
September 30, 1997 to $11.2 million at December 31, 1997. Proceeds from such
borrowings were used to purchase mortgage-backed securities.
Total stockholders' equity increased by $120,000 from $6,854,000 at
September 30, 1997 to $6,974,000 at December 31, 1997. Stockholders' equity
increased by $49,000, 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, net income for the three month
period increased total stockholders' equity by $62,000 and the reduction in
unearned ESOP and RRP shares increased stockholders equity by $28,000.
Partially offsetting these increases was a cash dividend of $19,000.
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. 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 restructurings,
(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.
<PAGE>
<PAGE>
<TABLE>
<CAPTION>
September 30, 1997 December 31, 1997
------------------ -----------------
(Dollars in Thousands)
<S> <C> <C>
Non-Performing Assets
Non-accruing loans:
One-to four-family $717 $707
Consumer 154 161
Total 871 868
Foreclosed assets:
one-to four-family 122 323
Total non-performing assets $993 $1,191
Total as a percentage of
total assets 1.61% 1.90%
</TABLE>
Non-performing assets increased by $198,000 over the three month period
ended December 31, 1997, due to a decline in non-accruing loans of $3,000, and
an increase in real estate owned of $201,000. In December 1997 foreclosure
proceedings were finalized on three properties totaling $201,000, however two
of these properties already had commitments for sales with no additional
losses or reserves required.
Allowance for Loan Losses 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 $556,000 and $551,000, for
September 30, 1997 and December 31, 1997, respectively. The allowance for
loan losses as a percentage of net loans receivable equaled 1.32% at September
30, 1997 and 1.33% at December 31, 1997.
<PAGE>
<PAGE>
RESULTS OF OPERATIONS
Comparison of Operating Results for the Quarters Ended December 31, 1996 and
1997
General. The Company had net income of $66,000 for the three months ended
December 31, 1996, as compared to $62,000 for the three months ended December
31, 1997. The decrease in net income was primarily due to a decrease in net
interest income of $34,000, partially offset by a decrease of $26,000 in
non-interest expense and a decrease of $4,000 in income tax expense.
Interest Income. Interest income increased by $71,000 from $1,044,000 for
the three months ended December 31, 1996 to $1,116,000 for the three months
ended December 31, 1997. This increase was due primarily to the increase from
12.0 million of mortgage-backed securities to 14.5 million of mortgage-backed
securities outstanding over the comparative three month periods, and an
increase in the average interest rates from 6.58% to 6.81%.
Interest Expense. Interest expense increased by $106,000 from $606,000 for
the three months ended December 31, 1996 to $712,000 for the three months
ended December 31, 1997. This was due primarily to the increased cost of
funds. The cost of funds increased because of increased Federal Home Loan
Bank borrowings outstanding during the three months that cost higher than
deposit accounts and the overall increase in interest rates paid on deposits
from the prior year. Total interest-bearing liabilities increased from $50.5
million during the quarter ended December 31, 1996 to $55.1 million during the
quarter ended December 31, 1997. The weighted average cost of funds was 4.95%
and 5.24% during the three month period ended December 31, 1996 and 1997,
respectively.
Net Interest Income. The Company's net income is dependent upon net interest
income. Net interest income decreased by $34,000 from $438,000 for the three
months ended December 31, 1996 to $404,000 for the three months ended December
31, 1997. The decrease was due to a greater increase in interest expense than
the increase in interest income, caused by increased yields on deposits and
borrowings.
Provision for Loan Losses. No provision for loan losses was deemed
necessary for the three months ended December 31, 1997 and 1996.
Non-performing assets were $775,000 and $1,191,000 at December 31, 1996 and
1997, respectively. Non-performing assets as a percentage of total assets
were 1.34% and 1.90% at December 31, 1996 and 1997, 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 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.
<PAGE>
<PAGE>
Non-interest Income. Non-interest income was relatively consistent during
the three month ended December 31, 1996 and June 30, 1997.
Non-interest Expense. Total non-interest expense decreased by $26,000 from
$347,000 for the three months ended December 31, 1996 to $321,000 for the
three months ended December 31, 1997. Decreases in real estate expenses of
$17,000, FDIC insurance premiums of $18,000 and other expenses of 37,000 were
offset by increases in compensation and benefits expenses of $36,000,
occupancy and equipment expenses of $3,000, and marketing and other
professional services of $7,000. Compensation and benefits expense increased
due to a reduction in unearned RRP and ESOP shares which is accounted for
monthly now instead of annually. Other expense reduced due to the fact that
the annual shareholder assessment taxes are being accrued monthly anticipating
the tax for December.
Income Tax Provision. Income tax expense decreased by $4,000 for the
quarter ended December 31, 1997 as compared to the quarter ended December 31,
1996. The decrease was due to a decrease in pre-tax income.
Liquidity and Capital Resources
The Company's primary sources of funds are deposits, borrowings and
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 4% 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, 1997 and December 31, 1997 liquidity eligible
assets totaled $2.7 million and $2.7 million, respectively. At those same
dates, the Association's liquidity ratios were 5.2% and 5.4%, respectively,
all in compliance with the 4% minimum regulatory requirement.
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, 1997, the Association had
outstanding commitments to extend credit which amounted to $1.1 million.
Management believes that loan repayments and other sources of funds will be
adequate to meet the Association's foreseeable liquidity needs.
<PAGE>
<PAGE>
At December 31, 1997, the Company had $26.1 million in certificates of
deposit due within one year and $9.9 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, 1997 (dollars in thousands).
<TABLE>
<CAPTION>
Current Actual
Capital Association Capital
Requirement Capital Excess
-------------- -------------- ----------------
Amount % Amount % Amount %
------ --- ------ --- ------ ---
<S> <C> <C> <C> <C> <C> <C>
Tangible Capital 936 1.50% 5,737 9.19% 4,801 7.69%
Core Capital 1,873 3.00% 5,737 9.19% 3,864 6.19%
Risk-Based Capital 2,688 8.00% 6,116 18.20% 3,428 10.20%
</TABLE>
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. First Federal is
considered a well capitalized institution based upon its capital ratios at
December 31, 1997. Total capital includes general loan loss reserves of
$379,000.
The Company is taking steps to make sure that it is in compliance with the
Year 2000 project. It has taken adequate steps in reviewing possible equipment
problems and has obtained written documentation from the service bureaus that
are currently supporting its operations. At this time management is working on
a contingency plan for the year 2000 that will cover any operational problems
that could arise and would have to be solved.
<PAGE>
<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
Exhibit 27 -- Financial Data Schedule
(b) Reports on Form 8-K
Not Applicable
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 17, 1998 /s/ Wayne McK. Gilmore
----------------------
Wayne McK. Gilmore
President
Date: February 17, 1998 /s/ Jutta Codori
-----------------------
Jutta Codori
Controller
<TABLE> <S> <C>
<PAGE>
<PAGE>
<ARTICLE> 9
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
ANNUAL REPORT ON FORM 10-KSB FOR THE YEAR ENDED SEPTEMBER 30, 1997 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-30-1997
<PERIOD-END> DEC-31-1997
<CASH> 209,391
<INT-BEARING-DEPOSITS> 342,107
<FED-FUNDS-SOLD> 0
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 15,679,689
<INVESTMENTS-CARRYING> 3,058,453
<INVESTMENTS-MARKET> 3,062,435
<LOANS> 42,212,542
<ALLOWANCE> 551,490
<TOTAL-ASSETS> 62,820,363
<DEPOSITS> 44,137,770
<SHORT-TERM> 10,300,000
<LIABILITIES-OTHER> 549,073
<LONG-TERM> 859,945
0
0
<COMMON> 2,615,938
<OTHER-SE> 4,357,637
<TOTAL-LIABILITIES-AND-EQUITY> 62,820,363
<INTEREST-LOAN> 833,950
<INTEREST-INVEST> 282,295
<INTEREST-OTHER> 0
<INTEREST-TOTAL> 1,116,245
<INTEREST-DEPOSIT> 561,908
<INTEREST-EXPENSE> 711,919
<INTEREST-INCOME-NET> 404,326
<LOAN-LOSSES> 0
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 321,134
<INCOME-PRETAX> 94,005
<INCOME-PRE-EXTRAORDINARY> 94,005
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 61,705
<EPS-PRIMARY> .16
<EPS-DILUTED> .16
<YIELD-ACTUAL> 7.60
<LOANS-NON> 868,000
<LOANS-PAST> 0
<LOANS-TROUBLED> 523,000
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 594,000
<CHARGE-OFFS> 5,000
<RECOVERIES> 0
<ALLOWANCE-CLOSE> 589,000
<ALLOWANCE-DOMESTIC> 0
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
