SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
__________________________________
FORM 10-Q
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended December 31, 1999
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) FOR THE
SECURITIES EXCHANGE ACT OF 1934
For the Transition period from ___________ to ____________
Commission File Number 0-25516
CAMERON FINANCIAL CORPORATION
(Exact name of Registrant as specified in its Charter)
Delaware 43-1702410
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
1304 North Walnut Street, Cameron, Missouri 64429
(Address of principal executive offices) (ZIP Code)
Registrant's telephone number, including area code: (816) 632-2154
Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15 (d) of the
Securities Exchange Act of 1934 during the preceding 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 ( )
Indicate the number of shares outstanding of each of the issuer's
common stock as of the latest practicable date.
Class Outstanding at February 7, 2000
Common stock, .01 par value 1,924,460
CAMERON FINANCIAL CORPORATION
Contents
PART I - FINANCIAL INFORMATION
Item 1: Financial Statements Page
Consolidated Balance Sheets at December 31, 1999,
unaudited, and September 30, 1999 3
Consolidated Statements of Earnings for the Three
Months Ended December 31, 1999 and 1998, unaudited 4
Consolidated Statements of Stockholder's
Equity for the Three Months Ended
December 31, 1999, unaudited 5
Consolidated Statements of Cash Flows for
the Three Months Ended December 31, 1999 and
1998, unaudited 6-7
Notes to Unaudited Consolidated Financial
Statements 8
Item 2: Management's Discussion and Analysis of
Financial Condition and Results of
Operations 9-16
Item 3: Quantitative and Qualitative Disclosures
about Market Risk 17
PART II - OTHER INFORMATION 18
Signatures 18
CAMERON FINANCIAL CORPORATION AND SUBSIDIARY
Consolidated Balance Sheets
(Dollars in thousands)
<TABLE>
December 31, September 30,
1999 1999
Assets (unaudited)
(Dollars in thousands)
<S> <C> <C>
Cash and cash equivalents $5,970 $6,100
Investment securities held-to-maturity (estimated fair
value of $20,475,000 at December 31 and $18,191,000 at
September 30) 21,038 18,538
Mortgage backed securities 5 5
Loans receivable, net 228,865 221,909
Accrued interest receivable:
Loans 1,457 1,523
Investment securities 266 268
Office property and equipment, net 7,654 7,748
Stock in Federal Home Loan Bank(FHLB) of Des Moines, at cost 4,028 3,556
Deferred income taxes 74 74
Other assets 1,816 1,832
Total assets $271,173 $261,553
Liabilities and Stockholders' Equity
Liabilities:
Savings deposits 143,765 143,737
Advances from FHLB 80,536 71,101
Advance payments for taxes and insurance 621 2,244
Accrued interest on savings deposits 135 158
Accrued expenses and other liabilities 4,922 3,491
Income taxes payable 472 198
Total liabilities 230,451 220,929
Stockholders' Equity:
Serial preferred stock, $.01 par, 2,000,000
authorized, none issued or outstanding --- --
Common stock, $.01 par value, authorized 10,000,000
shares, 3,026,928 shares issued 30 30
Additional paid in capital 30,179 30,163
Retained earnings, substantially restricted 27,686 27,385
Less:
Unearned employee benefits (1,353) (1,483)
Treasury stock, at cost- 972,349 shares at December 31,1999
and 944,749 at September 30, 1999 (15,820) (15,471)
Total Liabilities and stockholders' equity $271,173 $261,553
</TABLE>
See accompanying Notes to Unaudited Consolidated Financial
Statements.
<TABLE>
CAMERON FINANCIAL CORPORATION AND SUBSIDIARY
Consolidated Statements of Earnings
(unaudited)
Three Months Ended
December 31
1999 1998
(Dollars in thousands, except share data)
Interest income:
<S> <C> <C>
Loans $4,516 $3,925
Investment securities 291 235
Certificates of deposit and other 97 96
Total interest income 4,904 4,256
Interest expense:
Savings deposits 1,826 1,841
Borrowed money 1,109 559
Total interest expense 2,935 2,400
Net interest income 1,969 1,856
Provision for loan losses 49 33
Net interest income after
provision for loan losses 1,920 1,823
Noninterest income:
Loan fees and service charges 96 92
Gain on sale of investments 0 5
Other income 47 38
Total noninterest income 143 135
Noninterest expense:
Compensation, payroll taxes and
fringe benefits 747 685
Occupancy expense 214 177
Data processing 41 61
Federal insurance premiums 11 20
Advertising 28 37
Loss on real estate owned 2 (3)
Other operating expenses 207 219
Total noninterest expense 1,250 1,196
Earnings before income taxes 813 762
Income taxes 271 297
Net earnings $542 $465
Basic earnings per share $0.27 $0.22
Diluted earnings per share $0.27 $0.22
Basic average shares outstanding 1,975,846 2,122,616
Common stock equivalents-stock options 0 13,763
Diluted average shares outstanding 1,975,846 2,136,379
</TABLE>
See accompanying Notes to Unaudited Consolidated Financial Statements.
<TABLE>
CAMERON FINANCIAL CORPORATION AND SUBSIDIARY
Consolidated Statements of Stockholders' Equity
For The Three Months Ended December 31, 1999
(Unaudited)
Additional Unearned Total
Common paid-in Retained employee Treasury stockholders'
Stock capital earnings benefits stock equity
(Dollars in thousands)
<S> <C> <C> <C> <C> <C> <C>
Balance at September 30, 1999 $30 $30,163 $27,385 ($1,483) ($15,471) $40,624
Net earnings - - 542 - - $542
Amortization of RRP - - - 70 (6) 64
Allocation of ESOP shares - 16 - 60 - 76
Dividends declared - - (241) - - (241)
Purchase 27,600 shares of
treasury stock - - - - (343) (343)
Balance at December 31, 1999 $30 $30,179 $27,686($1,353) ($15,820) $40,722
</TABLE>
See accompanying Notes to Unaudited Consolidated Financial Statements.
<TABLE>
CAMERON FINANCIAL CORPORATION AND SUBSIDIARY
Consolidated Statements of Cash Flows
Three Months Ended December 31,
(Unaudited)
1999 1998
Cash flows from operating activities:
<S> <C> <C>
Net earnings $542 $465
Adjustments to reconcile net earnings to cash
provided by operating activities:
Depreciation and amortization 114 107
Provision for loan losses 49 33
Provision for losses on real estate owned - 1
Amortization of RRP and allocation of ESOP shares 140 171
Gain on sale of real estate owned (2) -
Amortization of deferred loan fees (39) (120)
Proceeds from sales of loans held for sale 634 2,223
Origination of loans held for sale (563) (1,674)
Gain on sale of loans held for sale (12) (23)
Changes in assets and liabilities:
Accrued interest receivable 68 125
Other assets (7) (139)
Accrued interest payable (23) (54)
Accrued expenses and other liabilities 1,437 (466)
Current income taxes payable 274 313
Net cash provided by operating activities $2,612 $962
Cash flows from investing activities:
Net increase in loans receivable (6,999) (3,872)
Mortgage-backed securities principal payments - 1
Maturity of investment securities
held to maturity 500 7,497
Purchase of investment securities
held to maturity (3,000) (6,500)
Purchase of FHLB stock (472) -
Net proceeds from sale of real estate owned (1) 4
Purchase of office properties and equipment, net (20) (68)
Cash used in investing activities ($9,992) ($2,938)
Cash flows from financing activities:
Net (decrease) increase in NOW passbook and
money market deposit accounts (892) 2,654
Net increase in certificate accounts 920 899
Net decrease in advance payments by
borrowers for taxes and insurance (1,623) (1,334)
Proceeds from FHLB advances 32,500 -
Repayment of FHLB advances (23,065) -
Dividends paid (247) (150)
Purchase of Treasury stock (343) ($3,080)
Net cash provided by (used in)
financing activities 7,250 (1,011)
Net (decrease) in cash (130) (2,987)
Cash and cash equivalents at beginning of period 6,100 7,719
Cash and cash equivalents at end of period $5,970 $4,732
Supplemental disclosure of cash flow information:
Cash paid during the period for income taxes - -
Cash paid during the period for interest, net
of capitalized interest $2,940 $2,454
Supplemental schedule of noncash investing and financing
activities:
Conversion of loans to real estate owned - $55
Conversion of real estate owned to loans $25 $49
Dividend declared and payable $241 $144
</TABLE>
CAMERON FINANCIAL CORPORATION AND SUBSIDIARY
Notes to Unaudited Consolidated Financial Statements
(1) Basis of Preparation
The accompanying unaudited consolidated financial statements have been
prepared in accordance with generally accepted accounting principles (GAAP)
for interim financial information and with the instructions to Form 10-Q and
Article 10 of Regulation S-X. To the extent that information and footnotes
required by generally accepted accounting principles for complete financial
statements are contained in or consistent with the audited financial
statements incorporated by reference in the Company's Annual Report
on Form 10-K for the year ended September 30, 1999, such information and
footnotes have not been duplicated herein. In the opinion of management, all
adjustments, consisting of only normal recurring accruals,
necessary for a fair presentation have been included. The results of operations
and other data for the three month period ended December 31, 1999 are not
necessarily indicative of results that may be expected for the entire fiscal
year ending September 30, 2000. The September 30, 1999 balance sheet
information has been derived from the consolidated balance sheet as of that
date.
(2) Impact of Accounting Standards.
The Financial Accounting Standards Board ("FASB") issued SFAS No. 133,
"Accounting for Derivative Instruments and Hedging Activities", in June
1998. SFAS No. 133, as amended by SFAS No. 137, "Accounting for Derivative
Instruments and Hedging Activities - Deferral of the Effective Date of FASB
Statement No. 133", establishes accounting and reporting standards for
derivative instruments, including certain derivative instruments embedded
in other contracts, and for hedging activities. It requires that an entity
recognize all derivatives as either assets or liabilities in the statement
of financial position and measure those instruments at fair value. This
statement is effective for all fiscal quarters of fiscal years beginning
after June 15, 2000. Management believes that the adoption of these
accounting standards will not significantly affect the Company's consolidated
financial statements.
CAMERON FINANCIAL CORPORATION AND SUBSIDIARY
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
This Quarterly Report on Form 10-Q may contain certain forward-looking
statements consisting of estimates with respect to the financial condition,
results of operations and business of Cameron Financial Corporation,the
"Company", that are subject to various factors which could cause actual
results to differ materially from these estimates. These factors include,
but are not limited to, general economic conditions, changes in interest
rates, deposit flows, loan demand, real estate values, and competition;
changes in accounting principles, policies, or guidelines; changes in
legislation or regulation; and other economic, competitive, governmental
regulatory, and technical factors affecting the Company's operations,
pricing, products and services.
The following discussion compares the financial condition of the Company
and its wholly owned subsidiary, The Cameron Savings & Loan Association,
F.A., the "Association", at December 31, 1999 to its fiscal year ended
September 30, 1999, and the results of operations for the three months
ended December 31, 1999 with the three months ended December 31, 1998.
This discussion should be read in conjunction with the interim financial
statements and notes which are included herein.
GENERAL
The Company was organized as a Delaware corporation in December 1994, at
the direction of the Association's Board of Directors, to acquire all of
the capital stock issued by the Association upon its conversion from the
mutual to stock form of ownership. The business of the Company consists
primarily of the business of the Association.
The Association was originally founded in April 1887 as a Missouri
chartered savings and loan association located in Cameron, Missouri. On
November 28, 1994, the Association members voted to convert the Association
to a Federal charter. The Association conducts its business through its
main office in Cameron, DeKalb County, and three full service branch
offices located in Liberty, Clay County, Maryville, Nodaway County, and
Mound City, Holt County. Deposits are insured by the Federal Deposit
Insurance Corporation, FDIC, to the maximum allowable.
The Association's business strategy is to operate as a well-capitalized,
profitable and independent community savings institution dedicated to home
mortgage lending and, to a lesser extent, consumer finance, funded
primarily by retail deposits from the Association's main and branch offices
and Federal Home Loan Bank advances. The Association has sought to
implement this strategy by emphasizing residential mortgage lending,
including a construction lending business, maintaining asset quality,
managing interest rate risk exposure, maintaining an investment portfolio
of high grade securities and other investments, maintaining acceptable
levels of profitability and capital, and emphasizing customer service.
The net income of the Association is dependent primarily on its net
interest income, which is the difference between interest earned on
its loans and investments and the interest paid on interest bearing
liabilities. Net income is also affected by the generation of non-interest
income, which primarily consists of fees and service charges. Net interest
income is determined by the difference between the yield earned on interest
earning assets and rates paid on interest bearing liabilities (interest
rate spread), and the relative amounts of interest earning assets and
interest bearing liabilities (net interest margin). The interest rate
spread is affected by loan demand and deposit flows. In addition, net
income is affected by the level of operating expenses and the establishment
of loan loss reserves.
The operation of a financial institution is significantly affected by
prevailing economic conditions, competition, and the monetary and fiscal
policies of governmental agencies. Lending activities are influenced by
the demand for and supply of housing, competition among lenders, the level
of interest rates, and the availability of funds. Deposit flows and cost
of funds are influenced by prevailing market rates of interest primarily
on competing investments, account maturities and the levels of personal
income and savings in the market area of the financial institution.
FINANCIAL CONDITION
Total assets increased 3.7%, or $9,620,000, to $271,173,000 at December 31,
1999 from $261,553,000 at September 30, 1999. Loans receivable, net,
increased $6,956,000, or 3.1%, to $228,865,000 at December 31, 1999 from
$221,909,000 at September 30, 1999. Cash, investment securities and
certificates of deposit in other financial institutions increased
$2,370,000, or 9.6%, to $27,013,000 at December 31, 1999 from $24,643,000
at September 30, 1999. FHLB advances increased $9,435,000, or 13.3%, to
$80,536,000 at December 31, 1999 from $71,101,000 st September 30, 1999.
Deposits increased 0.02%, or $28,000, to $143,765,000 at December 31, 1999
from $143,737,000 at September 30, 1999. Stockholders' equity increased
$98,000 or 0.2% to $40,722,000 at December 31, 1999 compared to $40,624,000
at September 30, 1999. The increase in stockholder's equity was primarily
due to net earnings of $542,000 and amortization of unearned employee
benefits of $140,000 offsetting the purchase of 27,600 shares of treasury
stock for $343,000 and dividends declared of $241,000.
The following table sets forth certain information regarding the
composition of the Association's loan portfolio.
<TABLE>
December 31, September 30,
1999 1999
<S> <C> <C>
One- to four family $165,887,000 $160,789,000
Multifamily 7,513,000 7,360,000
Commercial real estate 8,987,000 6,398,000
Land 5,364,000 6,025,000
Development 7,433,000 8,635,000
Construction (1) 37,940,000 40,301,000
Consumer loans 17,542,000 16,459,000
Total Loans Receivable 250,666,000 245,967,000
Less:
Deferred loan fees, net 496,000 529,000
Loans in process 19,655,000 21,927,000
Allowance for loan losses 1,650,000 1,602,000
Net Loans Receivable $228,865,000 $221,909,000
Speculative construction $19,415,000 $24,205,000
Contract and permanent
construction $18,525,000 $16,096,000
Total (1) $37,940,000 $40,301,000
</TABLE>
During the three months ended December 31, 1999, permanent one- to four-
family loans increased by $5,098,000, or 3.17%, to $165,887,000, commercial
real estate loans increased $2,589,000 to $8,987,000, and consumer and
other loans increased $1,083,000, or 6.58%, to $17,542,000. Construction
loans decreased by $2,361,000, or 5.86%, to $37,940,000.
Deposits were $143,765,000 at December 31, 1999, an increase of $28,000,
or 0.02% from $143,737,000 at September 30, 1999. Competition from other
financial and non-financial entities will continue to impact savings
growth. The Association offers competitive interest rates on its deposit
products.
FHLB advances increased $9,435,000, or 13.3%, to $80,536,000 at December
31, 1999 from $71,101,000 at September 30, 1999. New advances during the
quarter were $32,500,000 and repayments were $23,065,000.
At December 31, 1999 FHLB advances and certificates of deposit represented
35.9% and 49.5% of interest-bearing liabilities, respectively.
At September 30, 1999, they represented 33.1% and 51.3% of interest-bearing
liabilities respectively.
RESULTS OF OPERATIONS
Net Earnings: Unaudited diluted earnings per share were $0.27 for the
quarter ended December 31, 1999 compared to $0.22 for the quarter ended
December 31, 1998, an increase of $0.05 per share or 22.7%. Net earnings
increased $77,000, or 16.6%, to $542,000 for the quarter ended December 31,
1999, compared to $465,000 for the quarter ended December 31, 1998.
Increases in interest income and non-interest income and a decrease in
income taxes offset increases in interest expense, non-interest expense and
the provision for loan losses.
Net Interest Income: Net interest income increased $113,000, or 6.1%, to
$1,969,000 for the quarter ended December 31, 1999, compared with
$1,856,000 for the quarter ended December 31, 1998. Most of the increase
was due to the increase in percentage of interest earning assets invested
in higher yielding loans compared to other lower yielding investments.
The net interest margin decreased to 3.20% for the three months ended
December 31, 1999 compared to 3.51% for the three months ended December 31,
1998. Interest earning assets averaged 114.23% of interest bearing
liabilities for the three months ended December 31, 1999 compared to
119.42% for the comparable period in 1998. The average spread between
interest earning assets and interest bearing liabilities decreased to 2.54%
for the three months ended December 31, 1999, compared to 2.61% for the
same period in 1998. Most of the decrease in interest rate spread was due
to average rates earned on interest earning assets decreasing more than
average rates on interest bearing liabilities.
Interest Income: Interest income increased by $648,000, or 15.2%, to
$4,904,000 for the quarter ended December 31, 1999, from $4,256,000 for the
quarter ended December 31, 1998. The increase was primarily due to
increased balances in interest earning assets offsetting decreased yields
on those assets.
Interest Expense: Interest expense increased $535,000, or 22.3%, to
$2,935,000 for the quarter ended December 31, 1999, compared to $2,400,000
for the quarter ended December 31, 1998. The increase is primarily a
result of increased balances in interest bearing liabilities offsetting
decreased rates on those liabilities.
Provision for Loan Losses: The provision for loan losses was $49,000 for
the quarter ended December 31, 1999, compared to $33,000 for the same
period in 1998. The increase was primarily due to increases in the total
loan portfolio and the changing composition of the loan portfolio between
the two periods. The Association maintains a program for establishing
general loan loss reserves by classifying various components of the loan
portfolio by potential risk. Various percentages are applied to the
different types of loans in the portfolio with the highest requirement
assigned to the loans with the greatest inherent risk. The provision will
vary based on increases or decreases in the total loan portfolio and
changes in the composition or mix of the portfolio. As of December 31,
1999, the allowance for loan losses was $1,650,000, or 0.66% of total loans
receivable and 199.40% of total nonperforming loans. Charge-offs were
$1,000 and $5,000 for the quarters ended December 31, 1999 and 1998,
respectively.
A reconciliation of the Association's allowance for loan losses is
summarized as follows:
<TABLE>
Three Months Ended December 31,
1999 1998
Balance at beginning
<S> <C> <C>
of period $1,602,000 $1,521,000
Provision 49,000 33,000
Charge-offs (1,000) (5,000)
Recoveries - -
Balance at end of period $1,650,000 $1,549,000
</TABLE>
Noninterest Income: Noninterest income increased $8,000, or 5.9%, to
$143,000 for the quarter ended December 31, 1999 from $135,000 for the
comparable period in 1998. Loan fees and deposit service charges increased
$4,000 for the three months ended December 31, 1999 compared to the same
period in 1998, due primarily to increased deposit accounts with monthly
charges and income from ATM and debit card transactions. The Company had
a $5,000 gain on the sale of investments during the quarter ended December
31, 1998 with none in the quarter ended December 31, 1999. Other income
increased $9,000 in the quarter ended December 31, 1999 compared to the
same period in 1998. The increase was primarily due to increased
commissions from the new brokerage operation of the Association's service
corporation offsetting decreased profits on the sale of loans. Profits on
the sale of loans totaled $12,000 in the quarter ended December 31, 1999
compared to $23,000 in the quarter ended December 31, 1998. Brokerage
commissions in the quarter ended December 31, 1999 were $23,000, compared
to $5,000 in the quarter ended December 31, 1998. The brokerage operation
did not open until September 1998.
Noninterest Expense: Noninterest expense increased $54,000, or 4.5%, to
$1,250,000 for the quarter ended December 31, 1999 from $1,196,000 for the
same period in 1998. Personnel expenses increased $62,000 in the 1999
period, to $747,000, compared to the comparable 1998 period. Cash
compensation increased $45,000 for the quarter ended December 31, 1999
compared to the quarter ended December 31, 1998. The Association had 70
full-time equivalent employees at December 31, 1999 compared to 68 at
December 31, 1998. Payroll taxes and other benefits increased $7,000 in
the quarter ended December 31, 1999 compared to the quarter ended December
31, 1998, primarily due to the increase in employee insurance benefits.
ESOP expenses were $30,000 lower in the quarter ended December 31, 1999
compared to the quarter ended December 31, 1998 due to lower average prices
of the Company's common stock in the current quarter. Decreased loan
originations in the quarter ended December 31, 1999 compared to the quarter
ended December 31, 1998, caused the Association to defer $38,000 less in
costs under FAS 91 for the current quarter.
Occupancy expense increased $37,000 to $214,000 for the quarter ended
December 31, 1999 compared to the quarter ended December 31, 1998 due to
increased real estate taxes, depreciation expenses and expenses for
utilities.
Federal insurance premiums were $11,000 for the quarter ended December 31,
1999 compared to $20,000 for the quarter ended December 31, 1998. The
Association received a credit during the current quarter from an
overpayment in a prior quarter. Advertising expenses decreased $9,000 to
$28,000 for the quarter ended December 31, 1999 compared to the same period
in 1998. Advertising expenses for the quarter ended December 31, 1998
included promotions for the opening of the new branch office in Liberty.
Other operating expenses decreased $12,000 to $207,000 for the quarter
ended December 31, 1999 compared to the quarter ended December 31, 1998.
A consultant was hired in the quarter ended December 31, 1998 to assist in
establishing a formal salary administration program; professional fees in
the quarter ended December 31, 1998 included those due to the establishment
of the brokerage operation and a cost recovery study done on the recently
erected buildings. There were no comparable expenses in the quarter ended
December 31, 1999. Increases in loan expenses, exam expenses, supplies and
telephone expense offset decreases in postage and other expense.
Income Taxes: Income tax expense decreased $26,000 to $271,000 for the
quarter ended December 31, 1999, compared to $297,000 for the quarter ended
December 31, 1998. Although taxable income increased $51,000 to $813,000
for the quarter ended December 31, 1999 compared to $762,000 for the
quarter ended December 31, 1998, an over accrual of income tax expense in
prior periods of $24,000 resulted in a lower effective tax rate for the
current quarter. The effective tax rate was 33.3% and 39.0% for the
quarters ended December 31, 1999 and 1998, respectively.
Asset and Liability Management - Interest Rate Sensitivity
At December 31, 1999, the Company's total interest-bearing liabilities
maturing or repricing within one year exceeded interest-earning assets
maturing or repricing in the same period by $24.8 million, representing a
cumulative negative one-year gap ratio of 9.2% to total assets. At
September 30, 1999, the negative gap was $34.0 million, or 13.0% to total
assets. The change is primarily due to the increase in longer term FHLB
advances.
The Year 2000 Issue
The Association has not encountered any Year 2000 related problems to date.
The Association will continue to monitor all data processing and other
applications throughout the year.
NON-PERFORMING ASSETS
The following table sets forth the amounts and categories of the
Association's non-performing assets. Loans are placed on non-accrual
status when the collection of principal and/or interest is not probable;
however, in no event is interest accrued on loans for which interest is
more than 90 days delinquent. Foreclosed assets include assets acquired
in settlement of loans.
<TABLE>
December 31,September 30,
1999 1999
(Dollars in Thousands)
Non-Accruing Loans:
<S> <C> <C>
One- to four-family $198 $171
Multi-family -- --
Commercial -- --
Land -- 63
Construction -- --
Consumer 101 13
Total non-accuring loans 299 247
Accruing loans delinquent 90 days or more(1)
One- to four-family -- --
Multi-family 529 --
Commercial -- --
Land -- --
Construction -- --
Consumer -- --
Total accruing loans delinquent
90 days or more 529 --
Total non-performing loans 828 247
Foreclosed Assets:
One- to four-family -- 23
Multi-family -- --
Commercial -- --
Land -- --
Construction -- --
Consumer 23 --
Total foreclosed assets 23 23
Total non-performing assets $851 $270
Total classified assets $5,269 $8,062
Total non-performing loans as a
percentage of loans receivable 0.33% 0.10%
Total non-performing assets as a
percentage of total assets 0.31% 0.10%
</TABLE>
_________________
(1) These loans are delinquent 90 days or more as to principal but
not as to interest. This can occur when the Association receives a
partial payment from a borrower which is first applied to interest
due.
Non-performing loans increased $581,000 to $828,000 at December 31, 1999
from $247,000 at September 30, 1998. One multi-family loan of $529,000
became 90 days delinquent at December 31, 1999. The loan-to-value ratio
of that loan is 57%. Classified assets decreased $2,793,000, or 34.64% to
$5,269,000 at December 31, 1999 from $8,062,000 at September 30, 1999,
primarily due to a decrease in the number of speculative construction loans
not paid off in their initial term. Those loans totaled $1,670,000 at
December 31, 1999 and $4,486,000 at September 30, 1999.
CAPITAL RESOURCES
The Association is subject to three capital to asset requirements in
accordance with Office of Thrift Supervision regulations. The following
table is a summary of the Association's regulatory capital requirements and
actual capital as of December 31, 1999:
<TABLE>
Actual Required Excess
Amount/Percent Amount/Percent Amount/Percent
(Dollars in Thousands)
<S> <C> <C> <C> <C> <C> <C>
Tangible Capital $35,707 13.37% $4,006 1.50% $31,701 11.87%
Core Leverage
Capital 35,707 13.37% 10,683 4.00% 25,024 9.37%
Risk-Based
Capital 37,349 21.24% 14,065 8.00% 23,284 13.24%
</TABLE>
LIQUIDITY
The Association's principal sources of funds are deposits, advances from
the Federal Home Loan Bank of Des Moines, principal and interest payments
on loans, and investment securities classified as held to maturity. While
scheduled loan repayments and maturing investments are relatively
predictable, deposit flows and early loan prepayments are more influenced
by interest rates, general economic conditions and competition.
The Association is required to maintain minimum levels of liquid assets as
defined by regulations. The required percentage is currently 4% of net
withdrawable savings deposits, less withdrawable deposits maturing in more
than one year, and borrowings payable on demand or in one year or less.
The Association has maintained its liquidity ratios at levels exceeding the
minimum requirement. The eligible liquidity ratios at December 31, 1999
and September 30, 1999 were 14.60% and 11.89% respectively.
In light of the competition for deposits and demand for loans, the
Association has utilized the funding sources of the Federal Home Loan Bank
to meet demand in accordance with the Association's growth plan. The
wholesale funding sources may allow the Association to obtain a lower cost
of funding and create a more efficient liability match to the respective
assets being funded. Long term advances increased $5,935,000 during the
quarter ended December 31, 1999 due to a new ten year advance of $8,000,000
combined with maturities of $2,000,000 and scheduled amortization of
$65,000 on existing advances. Short term advances increased by $3,500,000
during the quarter ended December 31, 1999 compared to the balance at
September 30, 1999. Certificates of deposits were 77.3% of total savings
and 49.5% of total interest-bearing liabilities at December 31, 1999
compared to 76.6% and 51.3% respectively at September 30, 1999.
Quantitative and Qualitative Disclosures about Market Risk
For a discussion of the Company's management of market risk, see "Asset and
Liability Management" in Part 1 of this report and pages 14 and 15 of the
Company's Annual Report incorporated by reference in Part IV, item 14, of
Form 10-K for the fiscal year ended September 30, 1999.
For quantitative information about market risk, see pages 14 and 15 of the
Company's 1999 Annual Report.
There has been no material changes in the quantitative disclosures about
market risk as of December 31, 1999 from those presented in the Company's
1999 Annual Report.
CAMERON FINANCIAL CORPORATION
FORM 10-Q
PART II - OTHER
INFORMATION
ITEM 1. Legal Proceedings
The Holding Company and the Association are not involved in
any legal proceedings incident to the business of the
Holding Company and the Association, which involve amounts
in the aggregate which management believes are material to
the financial condition and results of operation.
ITEM 2. Changes in Securities
Not Applicable
ITEM 3. Defaults upon Senior Securities
Not Applicable
ITEM 4. Submissions of Matters to a Vote of Security Holders
None
ITEM 5. Other Information
None
ITEM 6. Exhibits and Reports of Form 8-K
Financial Data Schedule; EX-27
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.
CAMERON FINANCIAL CORPORATION
Registrant
Date: February 11, 2000 /s/ David G. Just
David G. Just, President and Chief
Executive Officer (Duly Authorized
Officer)
Date: February 11, 2000 /s/ Ronald W. Hill
Ronald W. Hill, Vice-President &
Treasurer (Principal Financial &
Accounting Officer)
<TABLE> <S> <C>
<ARTICLE> 9
<LEGEND>
This schedule contains summary financial information from Form 10-Q and is
qualified in its entirety by reference to such Form 10-Q.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> SEP-30-2000
<PERIOD-END> DEC-31-1999
<CASH> 5,545,000
<INT-BEARING-DEPOSITS> 425,000
<FED-FUNDS-SOLD> 0
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 0
<INVESTMENTS-CARRYING> 21,043,000
<INVESTMENTS-MARKET> 20,475,000
<LOANS> 252,316,000
<ALLOWANCE> 1,650,000
<TOTAL-ASSETS> 271,173,000
<DEPOSITS> 143,765,000
<SHORT-TERM> 80,536,000
<LIABILITIES-OTHER> 6,150,000
<LONG-TERM> 0
0
0
<COMMON> 30,000
<OTHER-SE> 40,692,000
<TOTAL-LIABILITIES-AND-EQUITY> 271,173,000
<INTEREST-LOAN> 4,516,000
<INTEREST-INVEST> 291,000
<INTEREST-OTHER> 97,000
<INTEREST-TOTAL> 4,904,000
<INTEREST-DEPOSIT> 1,826,000
<INTEREST-EXPENSE> 2,935,000
<INTEREST-INCOME-NET> 1,969,000
<LOAN-LOSSES> 49,000
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 1,250,000
<INCOME-PRETAX> 813,000
<INCOME-PRE-EXTRAORDINARY> 813,000
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 542,000
<EPS-BASIC> 0.27
<EPS-DILUTED> 0.27
<YIELD-ACTUAL> 7.80
<LOANS-NON> 299,000
<LOANS-PAST> 529,000
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 4,441,000
<ALLOWANCE-OPEN> 1,602,000
<CHARGE-OFFS> 1,000
<RECOVERIES> 0
<ALLOWANCE-CLOSE> 1,650,000
<ALLOWANCE-DOMESTIC> 1,650,000
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
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