AMERICAN BANCORP INC/LA - 10-K Annual Report

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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-K

Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of
1934

For the Fiscal Year Ended December 31, 2001 Commission File Number 0-11928

AMERICAN BANCORP, INC.
(Exact name of registrant as specified in its charter)

Louisiana 72-0951347
(State or other jurisdiction of (I.R.S. Employer identification No.)
incorporation or organization)

321 East Landry Street
Opelousas, Louisiana 70570
(Address of principal executive offices) (Zip Code)

Registrant's Telephone Number, including area code: (337) 948-3056

Securities registered pursuant to Section 12(b) of the Act: None

Securities registered pursuant to Section 12(g) of the Act:

Common Stock, $5.00 Par Value
(Title of Class)

Indicate by check mark whether the registrant: (l) 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 by check mark if disclosure of delinquent filers pursuant to Item 405
of Regulation S-K is not contained herein, and will not be contained, to the
best of registrant's knowledge, in definitive proxy or information statements
incorporated by reference in Part III of this Form 10-K or any amendment to this
Form 10-K. [ ]

The aggregate market value of the voting stock held by non-affiliates* of the
registrant: $5,641,548.

The number of shares outstanding of each of the issuer's classes of common
stock, as of December 31, 2001: Common Stock, $5.00 Par Value, 116,589 shares
outstanding.

Documents Incorporated by Reference

Portions of the annual shareholders' report for the year ended December 31, 2001
are incorporated by reference into Parts I and II.

Portions of the proxy statement for the annual shareholders meeting to be held
April 10, 2002 are incorporated by reference into Part III.

*For purposes of the computation, shares owned by executive officers,
directors, 5% shareholders and shares by non-affiliates whose voting rights have
been assigned to directors have been excluded.

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PART I

Item 1. Business

American Bancorp, Inc. (the Company) was incorporated under the laws of
the State of Louisiana in 1982. On October 1, 1983, American Bank and Trust
Company (the Bank) was reorganized as a subsidiary of the Company. Prior to
October 1, 1983, the Company had no material activity. The Company is currently
engaged, through its subsidiary, in banking and related business. The Bank is
the Company's principal asset and primary source of revenue.

The Bank

The Bank, incorporated under the State Banking Laws on August 1, 1958 is
in the business of gathering funds by accepting checking, savings, and other
time-deposit accounts and reemploying these by making loans and investing in
securities and other interest-bearing assets. The Bank is a full service
commercial bank. Some of the major services which it provides include checking,
NOW accounts, Money Market checking, savings, and other time deposits of various
types, loans for business, agriculture, real estate, personal use, home
improvement, automobile, and a variety of other types of loans and services
including letters of credit, safe deposit boxes, bank money orders, wire
transfer facilities, and electronic banking facilities.

The State of Louisiana, through its various departments and agencies,
deposits public funds with the Bank. However, as of December 31, 2001, the State
of Louisiana did not have any funds on deposit with the Bank.

The Bank's general market area is in St. Landry Parish, which has a
population of approximately 81,939. Its primary market is Opelousas, which has a
population of approximately 19,540, and has experienced little population growth
over the past several years.

The commercial banking business in St. Landry Parish is highly
competitive. The Depository Institutions Deregulation and Monetary Control Act
of 1980 and the Garn-St. Germain Depository Institutions Act of 1982 have
eliminated most, if not all, substantive distinctions between the services of
commercial banks and thrift institutions. The Bank competes with two banks and
two savings and loan institutions located in St. Landry Parish. The following is
a list of banks and savings associations in this market with the total deposits
and assets as of December 31, 2001.

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Item 1. Business (continued)

In addition to the institutions listed above, further competition is
provided by banks and other financial institutions located in Lafayette,
Louisiana, which is 20 miles south of Opelousas and Baton Rouge, Louisiana, the
state capital, which is 60 miles east of St. Landry Parish.

The banking industry is extensively regulated under both federal and
state law. The Company is subject to regulation under the Bank Holding Company
Act of 1956 (BHCA) and to supervision by the Board of Governors of the Federal
Reserve System (FRB). The BHCA requires the Company to obtain the prior approval
of the FRB for bank acquisitions and prescribes certain limitations in
connection with acquisitions and the non-banking activities of the Company. The
Bank is subject to regulation and examination by the Louisiana Office of
Financial Institutions and the Federal Deposit Insurance Corporation.

The banking industry is affected by the monetary and fiscal policies of
the FRB. An important function of the FRB is to regulate the national supply of
bank credit to moderate recessions and to curb inflation. Among the instruments
of monetary policy used by the FRB to implement its objectives are: open-market
operations of U.S. Government securities, changes in the discount rate and the
federal funds rate (which is the rate banks charge each other for overnight
borrowings) and changes in reserve requirements on bank deposits.

Employees

During 2001, the average number of full-time equivalent employees at the
Bank was 45. This includes the officers of the Company that are listed under
Item 1 below.

There are no unions or bargaining units that represent the employees of
the Bank. The relation between management and employees is considered to be
good.

Executive Officers

The executive officers of the Company are as follows:

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Item 1. Business (continued)

None of the directors and executive officers of the Company or the Bank
holds a directorship in any company with a class of securities registered under
Section 12 of the Securities Exchange Act of 1934, as amended, or subject to the
requirements of Section 15(d) of that Act or in any company registered as an
investment company under the Investment Company Act of 1940. Salvador L. Diesi,
Sr. and Ronald J. Lashute are the nephews of J.C. Diesi. No other family
relationships exist among the above named directors or executive officers of the
Company.

Supervision and Regulation

The Bank is subject to regulation and regular examinations by the
Louisiana Commissioner of Financial Institutions and by the Federal Deposit
Insurance Corporation. Applicable regulations relate to reserves, investments,
loans, issuance of securities, establishment of branches, and other aspects of
its operations.

The Federal Deposit Insurance Corporation Improvement Act of 1991
("FDICIA") further expanded the regulatory and enforcement powers of bank
regulatory agencies. Among the significant provisions of FDICIA is the
requirement that bank regulatory agencies prescribe standards relating to
internal controls, information systems, loan documentation, credit underwriting,
interest rate exposure, asset growth, compensation, fees and benefits. FDICIA
mandates annual examinations of banks by their primary regulators.

The Company is a bank holding company within the meaning of the Bank
Holding Company Act of 1956, as amended (the Act), and is thereby subject to the
provisions of the Act and to regulation by the Board of Governors of the Federal
Reserve System (the Board).

The Act requires the Company to file with the Board an annual report
containing such information as the Board may require. The Board is authorized by
the Act to examine the Company and all of its activities. The activities that
may be engaged in by the Company and its subsidiary are limited by the Act to
those so closely related to banking or managing or controlling banks as to be a
proper incident thereto. In determining whether a particular activity is a
proper incident to banking or managing or controlling banks, the Board must
consider whether its performance by an affiliate of a holding company can
reasonably be expected to produce benefits to the public, such as greater
convenience, increased competition or gains in efficiency that outweigh possible
adverse effects, such as undue concentration of resources, decreased or unfair
competition, conflicts of interest, or unsound banking practices.

The Board has adopted regulations implementing the provisions of the Act
with respect to the non-banking activities of bank holding companies. Such
regulations reflect a determination by the Board that certain specified
activities are permissible for a bank holding company. An activity not listed in
the regulation may be engaged in if, upon application, the Board determines that
the activity meets the criteria described in the preceding paragraph. In each
case, a bank holding company must secure the approval of the Board prior to
engaging in any of these activities.

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Item 1. Business (continued)

Whether or not a particular non-banking activity is permitted under the
Act, the Board is authorized to require a holding company to terminate any
activity, or divest itself of any non-banking subsidiary, if in its judgment the
activity or subsidiaries would be unsound.

Under the Act and the Board's regulations, a bank holding company and
its subsidiaries are prohibited from engaging in certain tie-in arrangements in
connection with any extension of credit or provision of any property or
services.

In some cases, the Company must receive the prior approval of the Board
in order to repurchase or redeem its outstanding equity securities.

With certain exceptions, the Subsidiary Bank is restricted by Sections
22 and 23A of the Federal Reserve Act from extending credit or making loans to
or investments in the Company and certain other affiliates as defined in the
Federal Reserve Act. Such transactions by the Subsidiary Bank with the Company
or any such affiliate are limited in an amount to 10% of the Subsidiary Bank's
capital and surplus. Furthermore, loans and extensions of credit are subject to
various collateral requirements.

The Louisiana bank holding company law, as amended (the "Louisiana
Act"), permits bank holding companies to own more than one bank. In addition, a
bank holding company and its subsidiaries may not engage in any insurance
activity in which a bank may not engage. The Louisiana Commissioner of Financial
Institutions is authorized to administer the Louisiana Act and to issue orders
and regulations.

The Board of Directors of the Company have no present plans or
intentions to cause the Company to engage in any substantial business activity
which would be permitted to it under the Act or the Louisiana Act but which is
not permitted to the Bank; however, a significant reason for formation of the
one-bank holding company is to take advantage of the additional flexibility
afforded by that structure if the Board of Directors of the Company concludes
that such action would be in the best interest of stockholders.

Statistical Information

The following tables contain additional information concerning the
business and operations of the Registrant and its subsidiary and should be read
in conjunction with the Consolidated Financial Statements of the Registrant and
Management's Discussion and Analysis of Financial Condition and Results of
Operations. The 2001 Annual Report to Shareholders is incorporated herein by
reference under Item 8.

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Item 1. Business (continued)

Investment Portfolio

The following table sets forth the carrying amount of Investment
Securities at the dates indicated (in thousands of dollars):

- 6 -

Item 1. Business (continued)

The following tables set forth the maturities of investment securities
at December 31, 2001, 2000, and 1999 and the weighted average yields of such
securities (in thousands of dollars):

- 7 -

Item 1. Business (continued)

- 8 -

Item 1. Business (continued)

* Weighted average yields have been computed on a fully tax-equivalent basis
assuming a rate of 34% for 2001, 2000 and 1999.

- 9 -

Item 1. Business (continued)

Loan Portfolio

Loans outstanding at the indicated dates are shown in the following
table according to type of loan (in thousands of dollars):

Selected Loan Maturities

The following table shows selected categories of loans outstanding as of
December 31, 2001 which, based on remaining scheduled repayments of principal,
are due in the amounts indicated. Also, the amounts are classified according to
the sensitivity to the changes in interest rates (in thousands).

(l) Includes demand loans, loans having no stated schedule of repayments
and no stated maturity and overdrafts.

(2) The floating interest rate loans generally fluctuate according to a
formula based on a prime rate.

- 10 -

Item 1. Business (continued)

The following table presents information concerning the aggregate amount
of nonperforming loans. Nonperforming loans comprise: (a) loans accounted for on
a nonaccrual basis; (b) loans contractually past due ninety days or more as to
interest or principal payments [but not included in the nonaccrual loans in (a)
above];(c) other loans whose terms have been restructured to provide a reduction
or deferral of interest or principal because of a deterioration in the financial
position of the borrower [exclusive of loans in (a) or (b) above]; and (d) loans
now current where there are serious doubts as to the ability of the borrower to
comply with present loan requirement terms (in thousands of dollars).

At December 31, 2001, the recorded investment in loans that were considered
to be impaired under SFAS No. 114 was $7,740, with the related allowance for
loan losses of $2,000.

The effect of nonperforming loans on interest income has not been
substantial in the past five years. Had interest been accrued on the
nonperforming loans, interest income would have been recorded in the amount of
$500, $3,857, $9,501, $32,424 and $53,417 for the years 2001, 2000, 1999, 1998
and 1997, respectively. Interest income in the amount of $-0-, $2,490, $2,733,
$4,796 and $5,621 on nonperforming loans during 2001, 2000, 1999, 1998 and 1997,
respectively, was recorded.

At December 31, 2001, 2000, 1999, 1998 and 1997, there were no
significant commitments to lend additional funds to debtors whose loans were
considered to be nonperforming.

- 11 -

Item 1. Business (continued)

The Bank places loans on nonaccrual when the borrower is no longer able
to make periodic interest payments due to a deterioration of the borrowers
financial condition.

At December 31, 2001, the Bank has an insignificant amount of loans for
which payments are current, but the borrowers are experiencing financial
difficulties. These loans are subject to constant management attention, and
their classification is reviewed on a monthly basis.

Summary of Loan Loss Experience

The following table summarizes loan balances at the end of each period
and average loans based on daily average balances for 2001, 2000, 1999, 1998,
and 1997; changes in the allowance for possible loan losses arising from loans
charged off and recoveries on loans previously charged off by loan category; and
additions to the allowance which have been charged to expense (in thousands of
dollars):

Allowance for Possible Loan Losses
(In thousands of dollars)

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Item 1. Business (continued)

The allowance for possible loan losses has been allocated according to the
amount deemed to be reasonably necessary to provide for the possibility of
losses being incurred within the following categories of loans at the date
indicated:

Allocation of Allowance for Possible Loan Losses
(In thousands of dollars)

- 13 -

Item 1. Business (continued)

Deposits

The average amount of deposits, using daily average balances for 2001,
2000, and 1999, is summarized for the periods indicated in the following table
(in thousands of dollars):

Return on equity and assets

The ratio of Net Income to Average Shareholders' Equity and to Average
Total Assets, and certain other ratios, are as follows:

- 14 -

Item 1. Business (continued)

Short-Term Borrowing

The Company did not have any short-term borrowing during the last three
years ended December 31, 2001.

Forward-Looking Statements

Statements in this Report Form 10-K that are not historical facts should
be considered forward-looking statements with respect to the Company.
Forward-looking statements of this type speak only as of the date of this 10-K.
By nature, forward-looking statements involve inherent risk and uncertainties.
Various factors, including, but not limited to, economic conditions, asset
quality, interest rates, loan demand and changes in the assumption used in
making the forward-looking statements, could cause actual results to differ
materially from those contemplated by the forward-looking statements.

Item 2. Properties

The main office of the Company and the Bank are presently located at 321
East Landry Street, Opelousas, Louisiana, in the downtown business district. The
Bank leases three branch sites. The building in which the main office is located
is free of all mortgages.

For information with respect to the Company obligations under its lease
commitments, see Note 9 to the Consolidated Financial Statements, which are
incorporated herein by reference under Item 8.

Item 3. Legal Proceedings

The Company is not involved in any legal actions; however, there are
presently pending by the Bank a number of legal proceedings. It is the opinion
of management that the resulting liability, if any, from these actions and other
pending claims will not materially affect the consolidated financial statements.

Item 4. Submission of Matters to a Vote of Security Holders

No matters were submitted during the fourth quarter of the fiscal year
covered by this report to a vote of security holders, through the solicitation
of proxies or otherwise.

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PART II

Item 5. Market for Registrant's Common Stock and Related Security Holder Matters

MARKET PRICE AND DIVIDENDS DECLARED

Note: The primary market area for American Bancorp, Inc.'s common stock
is the Opelousas, Louisiana area with American Bank and Trust Company acting as
registrar and transfer agent. There were approximately 508 shareholders of
record at December 31, 2001.

Source of market price - American Bank & Trust Company acts as the
transfer agent for the Company. The stock is thinly traded and the price ranges
are based on stated sales price to the transfer agent, which does not represent
all sales.

RESTRICTIONS ON CASH DIVIDENDS PAYABLE BY THE REGISTRANT:

The only source of funds by the Company to pay dividends is dividends
paid by the Subsidiary Bank, the payment of which is restricted by applicable
federal and state statutes.

Federal bank regulatory authorities have authority under the Financial
Institutions Supervisory Act to prohibit a bank from engaging in an unsafe or
unsound practice. The payment of a dividend by the Bank could, depending upon
the financial condition of the Bank and other factors be deemed an unsafe or
unsound practice.

Applicable Louisiana law prohibits a state bank subsidiary from paying a
dividend if its surplus remaining after payment of the dividend would be less
than half the aggregate par value of its outstanding stock. In addition, a state
bank subsidiary is required to obtain the prior approval of the Commissioner of
Financial Institutions of Louisiana before declaring or paying a dividend in a
given year if the total of all dividends declared or paid during that year would
exceed the total of its net profits for that year combined with the net profits
from the immediately preceding year less dividends paid during these periods.

- 16 -

Item 6. Selected Financial Data

The information called for by Item 6 is included in Registrant's Annual
Report on page 5 in the Section titled "Summary of Operations for the Last Five
Years" and is incorporated herein by reference.

Item 7. Management's Discussion and Analysis of Financial Condition and Results
of Operations

The information called for by Item 7 is included in the Registrant's
Annual Report in the section titled "Management's Discussion and Analysis of
Financial Condition and Results of Operations" and is incorporated herein by
reference.

Item 8. Financial Statements and Supplementary Data

The following consolidated financial statements of the Registrant and
its subsidiary included on pages 28 through 57 in the Annual Report are
incorporated herein by reference:

Independent Auditors' Report

Consolidated Balance Sheets - December 31, 2001 and 2000

Consolidated Statements of Income - Years Ended December 31, 2001,
2000, and 1999

Consolidated Statements of Shareholders' Equity - Years Ended December
31, 2001, 2000, and 1999

Consolidated Statements of Cash Flows - Years Ended December 31, 2001,
2000, and 1999

Notes to Consolidated Financial Statements

Selected Quarterly Financial Data

Item 9. Disagreements in Accounting and Financial Disclosure

There have been no disagreements with an independent accountant on any
matter of accounting principles or practice, financial disclosure, auditing
scope or procedure.

PART III

Item 10. Directors and Executive Officers

With the exception of identification of executive officers of the
Company, the information called for by Item 10 is omitted pursuant to General
Instruction G(3) and is included in Registrant's definitive Proxy Statement
filed pursuant to Section 14(a). Executive officers of the Company are
identified in Item 1, "Executive Officer," included in Part I of this report.

- 17 -

Item 11. Management Remuneration and Transactions

The information called for by this item is included in Registrant's
definitive Proxy Statement filed pursuant to Section 14(a) of the Securities
Exchange Act of 1934 and is incorporated herein by reference.

Item 12. Security Ownership of Certain Beneficial Owners and Management

The information called for by this item is included in Registrant's
definitive Proxy Statement filed pursuant to Section 14(a) of the Securities
Exchange Act of 1934 and is incorporated herein by reference.

Item 13. Certain Relationships and Related Transactions

The information called for by this item is included in Registrant's
definitive Proxy Statement filed pursuant to Section 14(a) of the Securities
Exchange Act of 1934 and is incorporated herein by reference.

PART IV

Item 14. Exhibits, Financial Statement Schedules, and Reports on Form 8-K

(a) 1. Financial Statements

The following consolidated financial statements of
American Bancorp, Inc. and Subsidiary, included in pages
28 through 57 of the Registrant's Annual Report are
incorporated by reference in Item 8:

Independent Auditors' Report

Consolidated Balance Sheets - December 31, 2001 and
2000

Consolidated Statements of Income - Years Ended
December 31, 2001, 2000 and 1999

Consolidated Statements of Shareholders' Equity -
Years Ended December 31, 2001, 2000 and 1999

Consolidated Statements of Cash Flows - Years Ended
December 31, 2001, 2000 and 1999

Notes to Consolidated Financial Statements

Selected Quarterly Financial Data

(a) 2. Financial Statement Schedules

The Schedules to the consolidated financial statements
required by Article 9, and all other schedules to the
financial statements of the Registrant required by Article
9 of Regulation S-X are not required under the related
instructions or are inapplicable and therefore have been
omitted.

- 18 -

(a) 3. Exhibits

(13) 2001 Annual Report to Shareholders

(22) Proxy Statement for Annual Meeting of Shareholders
to be held on April 10, 2002

(23) Consent of Independent Auditors

Item 14. Exhibits, Financial Statement Schedules, and Reports on Form 8-K
(continued)

(b) Reports on Form 8-K

None

(c) Exhibits

The response to this portion of Item 14 is submitted as a
separate section of this report.

(d) Financial Statement Schedules

The response to this portion of Item 14 is submitted as a
separate section of this report.

- 19 -

Signatures

Pursuant to the requirements of Section 13 or 15(d) 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.

American Bancorp, Inc.
(Registrant)

By: /s/ Salvador L. Diesi, Sr.
---------------------------
Salvador L. Diesi, Sr., Chairman
of the Board of the Company
and the Bank; President of
the Company and the Bank

Date: March 13, 2002

Pursuant to the requirements of the Securities Exchange Act of 1934,
this report has been signed by the following persons on behalf of the Registrant
and in the capacities and on the dates indicated.

/s/ Salvador L. Diesi, Sr. /s/ Jasper J. Artall, Sr.
- ------------------------------------- ----------------------------------
Salvador L. Diesi, Sr., Chairman of Jasper J. Artall, Sr., Director
the Board of the Company and the
Bank; President of the Company
and the Bank

Date: March 13, 2002 Date: March 13, 2002
------------------------------ ---------------------------

/s/ Ronald J. Lashute /s/ Walter J. Champagne, Jr.
- ------------------------------------- ----------------------------------
Ronald J. Lashute, Executive Vice- Walter J. Champagne, Jr., Director
President and Chief Executive Officer
of the Bank; Secretary/Treasurer of
the Company

Date: March 13, 2002 Date: March 13, 2002
------------------------------- ----------------------------

/s/ J. C. Diesi
----------------------------------
J. C. Diesi, Director

Date: March 13, 2002
----------------------------

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EXHIBIT INDEX

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