<PAGE>
<PAGE>
FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the Quarterly Period Ended June 30, 1996
or
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from ___________ to ____________
Commission file number 1-11819
-------
HAYWOOD BANCSHARES, INC.
---------------------------
(Exact name of registrant as specified in its charter)
North Carolina 56-1918006
- ----------------------------- ------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
505 North Main Street, Waynesville, North Carolina 28786
- -----------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
(704) 456-9092
--------------------
(Registrant's telephone number, including area code)
NOT APPLICABLE
-------------------
(Former name, former address, and former fiscal year, if changed
since last report)
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
APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS
DURING THE PRECEDING FIVE YEARS:
Indicate by check mark whether the registrant has filed all
documents and reports required to be filed by Sections 12, 13 or
15(d) of the Securities Exchange Act of 1934 subsequent to the
distribution of securities under a plan confirmed by a court. Yes
_____ No _____
APPLICABLE ONLY TO CORPORATE ISSUERS:
Indicate the number of shares outstanding of each of the
issuer's classes of common stock, as of the latest practicable
date.
As of July 23, 1996, shares of common stock outstanding were
1,200,856.
<PAGE>
<PAGE>
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
- -----------------------------
HAYWOOD BANCSHARES, INC. AND SUBSIDIARY
Consolidated Statements of Financial Condition
<TABLE>
<CAPTION>
June 30, December 31,
1996 1995
---------- ------------
ASSETS (Unaudited)
- ------
<S> <C> <C>
Cash on hand and in banks $ 1,193,156 $ 1,467,946
Interest-bearing balances in other banks 312,980 816,890
Federal funds sold 100,332 440,248
Investment securities (market value of
$14,928,965 and $17,113,475, respectively) 15,094,099 17,100,000
Mortgage-backed securities (market value
of $1,260,421 and $1,488,416, respectively) 1,242,445 1,419,707
Loans receivable (net of allowance for
loan losses of $713,547 and $703,547,
respectively) 107,219,457 104,018,911
Real estate acquired in settlement of loans 1,834,567 1,834,567
Federal Home Loan Bank stock, at cost 1,512,200 1,512,200
Premises and equipment 1,753,807 1,827,077
Other assets 818,808 799,417
Goodwill 806,280 832,530
------------ ------------
$131,888,131 $132,069,493
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
- ------------------------------------
Deposit accounts:
Noninterest-bearing $ 122,837 $ 122,427
Interest-bearing, including $11,286,510
and $10,754,929, respectively, of time
deposits for $100,000 or more 108,680,857 108,640,828
------------ ------------
108,803,694 108,763,255
Note payable 800,000 --
Accrued expenses and other liabilities 1,966,150 1,889,969
------------ ------------
Total liabilities 111,569,844 110,663,224
------------ ------------
Stockholders' equity:
Serial preferred stock, $1.00 par
value, 5,000,000 shares authorized;
no shares issued or outstanding -- --
Common stock, $1.00 par value, 10,000,000
shares authorized; 1,206,556 and
1,287,372 shares issued and outstanding,
respectively 1,206,556 1,287,372
Additional paid-in capital 3,240,807 4,652,561
Retained income, substantially restricted 16,198,478 15,825,090
----------- -----------
20,645,841 21,765,023
Less obligation in connection with funds used to
acquire common shares by ESOP (327,554) (358,754)
------------- -----------
Total stockholders' equity 20,318,287 21,406,269
------------ ------------
$131,888,131 $132,069,493
============ ============
</TABLE>
See accompanying notes to consolidated financial statements.
2<PAGE>
<PAGE>
HAYWOOD BANCSHARES, INC. AND SUBSIDIARY
Consolidated Statements of Income
<TABLE>
<CAPTION>
Six months ended June 30
(Unaudited)
------------------------
1996 1995
------- -------
<S> <C> <C>
Interest income:
Loans $4,371,394 $4,242,213
Investment securities-U.S. Government
agencies 447,059 559,324
Mortgage-backed securities 56,891 69,603
Interest-bearing balances in other banks 9,477 18,877
Federal funds sold 14,765 14,284
Other 54,518 54,347
---------- ----------
Total interest income 4,954,104 4,958,648
---------- ----------
Interest expense:
Deposits, including $233,725 in 1996
and $221,105 in 1995, on time deposits
for $100,000 or more 2,527,501 2,484,661
Other borrowed money 13,979 3,215
---------- ----------
Total interest expense 2,541,480 2,487,876
---------- ----------
Net interest income 2,412,624 2,470,772
Provision for loan losses 10,000 10,000
---------- ----------
Net interest income after provision
for loan losses 2,402,624 2,460,772
---------- ----------
Other income:
Insurance income, net 74,982 65,320
Service charges on deposits 37,853 27,063
Rental income 23,007 28,742
Real estate operations, net 208,168 130,598
Other income 18,509 20,527
---------- ---------
Total other income, net 362,519 272,250
---------- ---------
General and administrative expenses:
Salaries and employee benefits 911,439 833,732
Occupancy and equipment 187,697 194,995
Federal and other insurance premiums 141,190 132,620
Amortization of goodwill 26,250 26,250
Other expenses 382,149 407,368
---------- ----------
Total general and administrative
expenses 1,648,725 1,594,965
---------- ----------
Income before income taxes 1,116,418 1,138,057
Income taxes 409,000 436,000
---------- ----------
Net income $ 707,418 $ 702,057
========== ==========
Per share amounts-Net income $ .60 $ .55
========== ==========
</TABLE>
See accompanying notes to consolidated financial statements.
3<PAGE>
<PAGE>
HAYWOOD BANCSHARES, INC. AND SUBSIDIARY
Consolidated Statements of Income
<TABLE>
<CAPTION>
Three months ended June 30
(Unaudited)
-------------------------
1996 1995
-------- --------
<S> <C> <C>
Interest income: Loans $2,206,185 $2,193,473
Investment securities - U.S. Government 207,117 271,149
Mortgage-backed securities 27,191 34,646
Interest-bearing balances in other banks 2,932 11,590
Federal funds sold 6,516 9,073
Other 27,259 27,333
---------- ----------
Total interest income 2,477,200 2,547,264
---------- ----------
Interest expense:
Deposits, including $100,393 in 1996 and
$102,005 in 1995 on time deposits for
$100,000 or more 1,263,115 1,355,382
Other borrowed money 13,979 --
---------- ----------
Total interest expense 1,277,094 1,355,382
---------- ----------
Net interest income 1,200,106 1,191,882
Provision for loan losses 5,000 5,000
---------- ----------
Net interest income after provision
for loan losses 1,195,106 1,186,882
---------- ----------
Other income:
Insurance income, net 37,588 31,529
Service charges on deposits 16,619 13,484
Rental income 11,516 13,717
Real estate operations, net 100,366 72,671
Other income 8,586 10,460
---------- ---------
Total other income, net 174,675 141,861
---------- ---------
General and administrative expenses:
Salaries and employee benefits 448,818 420,448
Occupancy and equipment 88,910 88,367
Federal and other insurance premiums 69,575 63,921
Amortization of goodwill 13,125 13,125
Other expenses 225,927 217,729
---------- ---------
Total general and administrative
expenses 846,355 803,590
---------- ---------
Income before income taxes 523,426 525,153
Income taxes 187,000 205,000
---------- ---------
Net income $ 336,426 $ 320,153
========== =========
Net income per share $ .29 $ .25
========== =========
</TABLE>
See accompanying notes to consolidated financial statements.
4<PAGE>
<PAGE>
HAYWOOD BANCSHARES, INC. AND SUBSIDIARY
Consolidated Statements of Stockholders' Equity
<TABLE>
<CAPTION>
Six Months ended June 30, 1996
(Unaudited)
Additional Total
Common Paid-in Retained Obligation Stockholders'
Stock Capital Income of ESOP Equity
-------- ---------- -------- ---------- ------------
<S> <C> <C> <C> <C>
Balance at December 31, 1995 $1,287,372 $ 4,652,561 $15,825,090 $(358,754) $21,406,269
Stock options exercised 5,700 23,863 -- -- 29,563
Repurchase of common stock (86,516) (1,470,772) -- -- (1,557,288)
Net income -- -- 707,418 -- 707,418
Cash dividends paid on common
stock, $.13 per share -- -- (167,579) -- (167,579)
Cash dividends declared on
common stock, $.13 per share -- -- (156,852) -- (156,852)
Principal repayment of ESOP debt -- -- 31,200 31,200
Release and allocation of ESOP
shares -- 35,155 (9,599) -- 25,556
---------- ----------- ----------- --------- -----------
Balance at June 30, 1996 $1,206,556 $ 3,240,807 $16,198,478 $(327,554) $20,318,287
========== =========== =========== ========= ===========
</TABLE>
See accompanying notes to consolidated financial statements.
5<PAGE>
<PAGE>
HAYWOOD BANCSHARES, INC. AND SUBSIDIARY
Consolidated Statements of Cash Flows
<TABLE>
<CAPTION>
Six months ended June 30
(Unaudited)
------------------------
1996 1995
------- -------
<S> <C> <C>
Cash flows from operating activities:
Net income $ 707,418 $ 702,057
Adjustments to reconcile net income to net
cash provided by operating activities:
Provision for loan losses 10,000 10,000
Accretion of discount on loans (21,000) (21,000)
Depreciation 94,009 97,096
Amortization of goodwill 26,250 26,250
Increase (decrease) in allowance for
uncollected interest (16,470) (47,767)
Net gain on sale of assets -- (4,951)
Increase in other assets (19,391) (49,571)
Increase in accrued expenses and other
liabilities 133,443 313,808
Increase (decrease) in deferred loan fees 15,866 34,885
----------- -----------
Net cash provided by operating activities 930,125 1,060,807
----------- -----------
Cash flows from investing activities:
Purchases of investment securities (3,300,000) (300,000)
Proceeds from maturities of investment
securities 5,305,901 2,600,000
Principal collected on mortgage-backed
securities 177,262 90,686
Loan principal repayments (originations),net (3,188,942) (3,118,215)
Proceeds from sales of real estate acquired
in settlement of loans -- 44,937
Capital items related to real estate acquired
in settlement of loans -- (17,630)
Purchases of premises and equipment (20,739) (11,960)
----------- -----------
Net cash used in investing activities (1,026,518) (712,182)
----------- -----------
Cash flows from financing activities:
Net increase (decrease) in certificates
of deposit 59,886 4,574,204
Net increase (decrease) in other deposits (19,447) (2,853,499)
Proceeds from note payable 1,000,000 --
Repayment of note payable (200,000) --
Repurchase of common stock (1,557,288) --
Cash dividends paid (334,937) (307,572)
Proceeds from issuance of common stock upon
exercise of stock options 29,563 37,406
----------- -----------
Net cash provided by (used in) financing
activities (1,022,223) 1,450,539
----------- -----------
Net increase (decrease) in cash and cash
equivalents (1,118,616) 1,799,164
Cash and cash equivalents at beginning of
period 2,725,084 1,707,898
----------- -----------
Cash and cash equivalents at end of period $ 1,606,468 $ 3,507,062
=========== ===========
(Continued)
</TABLE> 6
<PAGE>
HAYWOOD BANCSHARES, INC. AND SUBSIDIARY
Consolidated Statements of Cash Flows
<TABLE>
<CAPTION>
Six months ended June 30
(Unaudited)
------------------------
1996 1995
------- -------
<S> <C> <C>
Supplemental disclosures of cash flow information:
Cash paid during the period for:
Interest $ 2,552,768 $ 2,388,576
Income taxes $ 442,466 $ 444,198
=========== ===========
Supplemental schedule of noncash investing and
financing activities:
Loans receivable transferred to real estate
acquired in settlement of loans -- 47,278
Dividends payable $ 156,852 $ 154,485
=========== ============
</TABLE>
See accompanying notes to consolidated financial statements.
7<PAGE>
<PAGE>
HAYWOOD BANCSHARES, INC. AND SUBSIDIARY
Notes to Consolidated Financial Statements
JUNE 30, 1996
(Unaudited)
(1) Presentation of Financial Statements
------------------------------------
The unaudited consolidated financial statements within Item 1
include, in the opinion of management of Haywood Bancshares, Inc.,
all adjustments (consisting only of normal recurring adjustments)
necessary for fair presentation of such consolidated financial
statements for the periods indicated.
(2) Summary of Significant Accounting Policies
------------------------------------------
For a description of the significant accounting and reporting
policies, see note (1) in the notes to the December 31, 1995
consolidated financial statements of the 1995 annual report.
(3) Cash and Cash Equivalents
-------------------------
Cash and cash equivalents include cash on hand and in banks,
interest-bearing balances in other banks, and federal funds sold.
Generally, cash and cash equivalents are considered to have
maturities of three months or less.
(4) Allowance for Loan Losses
-------------------------
The following is a reconciliation of the allowance for loan losses
for the six months ended June 30, 1996 and 1995:
<TABLE>
<CAPTION>
1996 1995
------ ------
<S> <C> <C>
Balance at beginning of period $703,547 $683,547
Provision for loan losses 10,000 10,000
-------- --------
Balance at end of period $713,547 $693,547
======== ========
</TABLE>
(5) Stock Options
-------------
During the six month period ended June 30, 1996, 1,700 incentive and
4,000 non-incentive stock options were exercised at an option price
of $5.63 and $5.00 per share, respectively.
(6) Formation of Bank Holding Company
---------------------------------
Effective on February 28, 1995, Haywood Bancshares, Inc. (the Holding
Company) was incorporated, solely for the purpose of becoming the
holding company for Haywood Savings Bank, Inc., SSB. The Holding
Company's Registration Statement on Form S-4 became effective with
the Securities and Exchange Commission on April 7, 1995. The
stockholders of Haywood Savings Bank, Inc., SSB approved the Agree-
ment and the Plan of Reorganization on May 2, 1995 and the
reorganization was completed on June 30, 1995.
The comparative six months ended June 30, 1995 financial statements
presented represent the financial statements for the wholly-owned
subsidiary, Haywood Savings Bank, Inc., SSB.
8<PAGE>
<PAGE>
HAYWOOD BANCSHARES, INC. AND SUBSIDIARY
Notes to Consolidated Financial Statements
(7) Stock Repurchase
----------------
In April and May 1996, Haywood Bancshares, Inc. repurchased 86,516
shares of common stock at $18 per share in connection with the stock
repurchase program announced on August 8, 1995 which permits
repurchases of up to 10% of the 1,287,372 outstanding shares.
Additionally, 5,700 shares were repurchased in July 1996. Haywood
Bancshares, Inc. will retire all repurchased shares.
(8) Accounting Changes
------------------
Effective January 1, 1996 the Corporation adopted Statement of
Financial Accounting Standards (SFAS) No. 121, "Accounting for the
Impairment of Long-Lived Assets and for Long-Lived Assets to be
Disposed of," which requires that long-lived assets and certain
identifiable intangibles to be held and used by an entity be
reviewed for impairment whenever events or changes in circumstances
indicate that the carrying amount of an asset may not be recoverable.
The adoption of the Standard had no impact on the Corporation's
financial statements.
The Financial Accounting Standards Board (FASB) has issued SFAS No.
122, "Accounting for Mortgage Servicing Rights," which requires that
a mortgage banking enterprise recognize as separate assets the rights
to service mortgage loans for others, however, those servicing rights
are acquired. The Corporation adopted SFAS No. 122 effective January
1, 1996. As the Corporation does not generally originate loans held
for sale, the adoption of SFAS No. 122 has had no affect on the
financial statements.
The FASB has also issued Standard No. 123, "Accounting for Stock-
Based Compensation," which requires that the fair value of employee
stock-based compensation plans be recorded as a component of
compensation expense in the statement of income as of the date of
grant of awards related to such plans or that the impact of such
fair value on net income and earnings per share be disclosed on a
pro forma basis in a footnote to financial statements for awards
granted after December 15, 1994, if the accounting for such awards
continues to be in accordance with Accounting Principles Board
Opinion No. 25, "Accounting for Stock Issued to Employees" (APB 25).
The Corporation will continue such accounting under the provisions of
APB 25. This Standard is required for fiscal years beginning after
December 15, 1995.
(9) Employee Stock Ownership Plan
-----------------------------
The Corporation has an employee stock ownership plan (ESOP) whereby
126,000 shares, or approximately 10% of the stock issued in
conjunction with Haywood Savings' conversion from a mutual to a stock
association, were purchased for future issuance to employees.
Additionally, in 1994, the Plan purchased 49,000 shares of common
stock at $12.00 per share for future issuance to employees.
The stock in the ESOP Plan has a put feature available to the ESOP
participants if the stock is not listed on a national securities
exchange. Prior to June 20, 1996, the Corporation's stock was not
listed on a national securities exchange. Accordingly, the 1995
annual report reported the 175,000 shares of ESOP stock, net of
29,685 unreleased shares associated with an outstanding ESOP Loan,
outside shareholders' equity at their fair value. However, effective
June 20, 1996, the Corporation's stock became listed on the American
Stock Exchange, negating the put feature and the need to report the
ESOP shares separately. As a result, the December 31, 1995 balances
have been restated to reflect this change in fact and related
reporting for comparative purposes.
9<PAGE>
<PAGE>
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations
- ------------------------------------------------------------
COMPARISON OF FINANCIAL CONDITION AND OPERATING RESULTS AS OF AND
FOR THE SIX MONTHS ENDED JUNE 30, 1996 AND 1995
Net income in 1996 increased to $707,418, or $.60 per share,
from $702,057 or $0.55 per share, in 1995. The increase in net
income was attributable to an increase in other income and a decrease
in income taxes partially offset by a decrease in net interest income
and an increase in general and administrative expenses. Earnings per
share was also impacted by repurchased and retired shares.
Total interest income in 1996 was $4,954,104, a $4,544 decrease
from the same period in 1995. The primary reason for the small
change was a decrease in the average yield on interest earning assets
(see table below) with an increase in the balance of average interest
earning assets of approximately $3.2 million, or 2.6%. Interest
expense in 1996 increased from 1995 by $53,604, or 2.2%, due to an
increase in the average rate on interest bearing liabilities (see
table below) and offset partially by an approximate $1.5 million, or
1.4%, decrease in the average balance of interest bearing liabilities.
The overall net effect of these changes was a $58,148 decrease in net
interest income before provision for loan losses and a decrease in
the interest rate spread between interest earning assets and interest
bearing liabilities from 3.43% in 1995 to 3.06% in 1996.
Other income increased $90,269, or 33.2%, in 1996 compared to
the same period in 1995 primarily as a result of an increase in net
real estate operations, which relates to net rental income from a
significant piece of real estate owned.
General and administrative expenses increased $53,760, or 3.4%,
in 1996 compared to 1995. Increases were experienced in salaries and
employee benefits (due mainly to annual salary increases) and federal
and other insurance premium expense. Offsetting these increases were
decreases in occupancy and equipment expense and miscellaneous other
expenses.
As a result of these and other factors, income before income
taxes decreased $21,639, or 1.9%, in 1996 versus 1995. Income tax
expense of $409,000 during the period resulted in an effective
income tax rate of 36.6% compared to 38.3% in 1995.
Haywood Savings' loan portfolio increased by approximately $3.2
million during the six months ended June 30, 1996. Loan originations
for the period were approximately $14.7 million. For the same period
in 1995, loan originations were approximately $13.4 million and the
loan portfolio increased by approximately $3.1 million.
Comparative yields, costs and spreads for the respective periods are
as follows:
<TABLE>
<CAPTION>
Twelve Months
Six Months Ended At Ended
June 30, June 30, December 31,
1996 1995 1996 1995
------ ------ ------- -------------
<S> <C> <C> <C> <C>
Average yield on interest
earning assets 7.69% 7.89% 7.66% 7.86%
Average rate on interest bearing
liabilities 4.63 4.46 4.82 4.54
---- ---- ---- ----
Asset/liability spread 3.06% 3.43% 2.84% 3.32%
==== ==== ==== ====
</TABLE>
10<PAGE>
<PAGE>
COMPARISON OF OPERATING RESULTS FOR THE THREE MONTHS ENDED JUNE 30,
1996 AND 1995
Net income in 1996 increased to $336,426, or $.29 per share,
from $320,153, or $.25 per share, in 1995. The increase in net
income was the result of improvements in net interest income and
other income as well as a decrease in income taxes all of which
offset an increase in general and administrative expenses. Earnings
per share was also impacted by repurchased and retired shares.
Total interest income for the 1996 period was $2,477,200, a
$70,064, or 2.8%, decrease from the same period in 1995. The
primary reason for the change was a decrease in the average yield
on interest earning assets from 8.08% for 1995 to 7.63% for 1996.
This decrease in yield was partially offset by a 3.0% increase in
the balance of average interest earning assets. Interest expense for
the 1996 quarter was $1,277,094, a $78,288, or 5.8%, decrease from
the 1995 quarter due primarily to a decrease in the average rate on
interest bearing liabilities from 4.89% for 1995 to 4.61% for 1996.
The overall net effect of these changes was an $8,224 increase in
net interest income before provision for loan losses and a decrease
in the interest rate spread between interest earning assets and
interest bearing liabilities from 3.19% in 1995 to 3.02% in 1996.
Other income increased $32,814, or 23.1%, in 1996 compared to
the same period in primarily as a result of an increase in net real
estate operations, which relates to net rental income from a
significant piece of real estate owned.
General and administrative expenses increased $42,765, or 5.3%,
in 1996 compared to the same period in 1995. Increases were
experienced in salaries and employee benefits, occupancy and
equipment expenses, federal and other insurance premiums, and
miscellaneous other expenses.
As a result of these and other factors, income before income
taxes decreased $1,727, or .3%, in 1996 versus 1995. Income tax
expense of $187,000 during the period resulted in an effective
income tax rate of 35.7% compared to 39.0% in 1995.
ASSET QUALITY
Haywood Bancshares' allowance for loan losses as a percentage of
outstanding loans remained stable at .66% at June 30, 1996 compared
to .67% at December 31, 1995. At June 30, 1996, nonaccrual loans
were $1,380,000 compared to $1,285,000 at December 31, 1995. There
were no charge-offs during the six month periods ended June 30, 1996
and 1995. Management recorded provisions for loan losses of $10,000
for the six month periods ended June 30, 1996 and 1995. Management
remains conscious of the judgmental nature of the allowance for loan
losses and the need for periodically evaluating the risk inherent in
the loan portfolio.
LIQUIDITY
Haywood Bancshares' asset-liability management policy is to
maintain and enhance the net interest income and provide adequate
liquidity to meet continuing loan demand, withdrawal requirements,
and pay for normal operating expenses. Liquidity is primarily
provided by the ability to attract deposits, maturities in the
investment portfolio, loan repayments, and current earnings.
11
<PAGE>
<PAGE>
At June 30, 1996, Haywood Bancshares had approximately
$16.7 million in cash, interest bearing balances in other banks,
federal funds sold, and investment securities. Management believes
that the level of liquidity at June 30, 1996, is adequate and in
compliance with regulatory requirements.
CAPITAL RESOURCES
Haywood Savings must comply with regulatory capital requirements
established by the FDIC. At June 30, 1996 Haywood Savings' leverage
capital ratio (Tier I Capital less certain intangible assets to total
assets) was 14.79%. The FDIC has not advised Haywood Savings of any
specific leverage ratio applicable to it. Also, Haywood Savings
exceeds the minimum FDIC requirements for total risk-based capital
(8%). The Holding Company must comply with FRB capital requirements
which are substantially the same.
REGULATORY MATTERS AND CONTINGENCIES
Various proposals are being considered by the United States
Congress concerning a possible merger of the Bank Insurance Fund
(BIF) and the Savings Association Insurance Fund (SAIF). Central to
that discussion is the recapitalization of the SAIF prior to such a
merger, and most of the proposals mandate a special one-time
assessment of SAIF-insured deposits. As of March 31, 1995, the
proposed measurement date, the Bank had total SAIF deposits of
approximately $110 million. While a final assessment rate is yet to
be determined, proposals have ranged up to $0.85 per $100 of
SAIF-insured deposits. Due to the uncertainty as to which, if any,
of the various proposals will be adopted and the ultimate amount of
the assessment to be levied, the impact of the proposals and the
assessment is impossible to predict with certainty at this time.
Management is not presently aware of any current recommendations
to the Corporation or to Haywood Savings by regulatory authorities
which, if they were to be implemented, would have a material effect
on the Corporation's liquidity, capital resources, or operations.
12<PAGE>
<PAGE>
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
- ------------------------------------------
(a) Exhibits. The following exhibits are being filed with the
report.
Exhibit
Number Description
-------- -----------
27 Financial Data Schedule (EDGAR ONLY)
(b) Reports on Form 8-K. During the quarter ended June 30,
1996, no current reports on Form 8-K were filed with the Commission
by the Corporation.
13<PAGE>
<PAGE>
SIGNATURES
- ----------
Under 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.
HAYWOOD BANCSHARES, INC.
(Registrant)
Date: July 25, 1996 By:/s/ Larry R. Ammons
Larry R. Ammons
(President and Principal
Executive Officer)
(Duly Authorized Representative)
Date: July 25, 1996 By: /s/ Jack T. Nichols
Jack T. Nichols
(Principal Financial Officer
and Principal Accounting
Officer)
<TABLE> <S> <C>
<ARTICLE> 9
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> JUN-30-1996
<CASH> 1,193,156
<INT-BEARING-DEPOSITS> 312,980
<FED-FUNDS-SOLD> 100,332
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 0
<INVESTMENTS-CARRYING> 16,336,544
<INVESTMENTS-MARKET> 16,189,386
<LOANS> 107,933,004
<ALLOWANCE> 713,547
<TOTAL-ASSETS> 131,888,131
<DEPOSITS> 108,803,694
<SHORT-TERM> 0
<LIABILITIES-OTHER> 1,966,150
<LONG-TERM> 800,000
0
0
<COMMON> 1,206,556
<OTHER-SE> 19,111,731
<TOTAL-LIABILITIES-AND-EQUITY> 131,888,131
<INTEREST-LOAN> 4,371,394
<INTEREST-INVEST> 503,950
<INTEREST-OTHER> 78,760
<INTEREST-TOTAL> 4,954,104
<INTEREST-DEPOSIT> 2,527,501
<INTEREST-EXPENSE> 2,541,480
<INTEREST-INCOME-NET> 2,412,624
<LOAN-LOSSES> 10,000
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 1,648,725
<INCOME-PRETAX> 1,116,418
<INCOME-PRE-EXTRAORDINARY> 707,418
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 707,418
<EPS-PRIMARY> .60
<EPS-DILUTED> .60
<YIELD-ACTUAL> 3.71
<LOANS-NON> 1,380,000
<LOANS-PAST> 0
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<ALLOWANCE-OPEN> 703,547
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<ALLOWANCE-CLOSE> 713,547
<ALLOWANCE-DOMESTIC> 713,547
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
