FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
QUARTERLY REPORT UNDER SECTION 13 OR 15 (d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the quarter ended June 30, 2002
Commission file number 2-84047
PEOPLES BANCSHARES OF POINTE COUPEE PARISH, INC.
POINTE COUPEE PARISH, LA 72-0995027
805 HOSPITAL ROAD, NEW ROADS, LOUISIANA 70760
(225) 638-3713
Common stock, $2.50 Par Value 1,000,000 shares authorized 309,677 issued and 308,977 outstanding as of June 30,2002
INDEX
PEOPLES BANCSHARES OF POINTE COUPEE PARISH, INC.
PART I. |
FINANCIAL INFORMATION |
Item 1. |
Financial statements (Unaudited) |
Unaudited consolidated balance sheet as of June 30, 2002. |
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Unaudited consolidated statement of income as of June 30, 2002. |
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Unaudited consolidated statement of change in stockholders' equity |
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for the six months ended June 30, 2002. |
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Notes to unaudited consolidated financial statements as of June 30, 2002 and 2001. |
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Item 2. |
Management's Discussion and Analysis of Financial Condition and Result of Operation's |
PART II. |
OTHER INFORMATION |
Item 1. |
Legal Proceedings |
Item 2. |
Changes in Securities |
Item 3. |
Defaults upon Senior Securities |
Item 4. |
Submission of Matters to a Vote of Security Holders |
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PEOPLES BANCSHARES OF Pointe Coupee Parish, Inc. |
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CONSOLIDATED BALANCE SHEET |
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AS OF JUNE 30, 2002 |
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(UNAUDITED) |
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ASSETS |
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Cash and due from banks | 1,482,110.00 | |||
Federal Funds Sold | 0 | |||
Cash and cash equivalent | 1,482,110.00 | |||
Interest bearing deposits in other banks | 1,688,000.00 | |||
Securities available for sale | 1,473,650.00 | |||
Federal Home Loan Bank Stock, at cost | 429,500.00 | |||
Loans, less allowance for loan loss of | ||||
$713,643.00 at June 30, 20002 | 40,974,230.00 | |||
Accrued interest receivable | 467,514.00 | |||
Bank premises and equipment, net of | ||||
accumulated depreciation | 554,814.00 | |||
Foreclosed real estate | 0 | |||
Other assets | 206,820.00 | |||
TOTAL ASSETS | 47,276,638.00 | |||
LIABILITIES AND STOCKHOLDERS EQUITY | ||||
LIABILITIES | ||||
Deposits | ||||
Noninterest-bearing | 6,964,916.00 | |||
Interest-bearing | 27,505,595.00 | |||
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Total deposits | 34,470,511.00 | |||
Federal funds borrowed | 100,000.00 | |||
Other borrowed funds | 3,332,000.00 | |||
Accrued interest payable | 89,689.00 | |||
Other liabilities | 315,189.00 | |||
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Total liabilities | 38,307,389.00 | |||
COMMITMENTS AND CONTINGENCIES | ||||
STOCKHOLDERS' EQUITY | ||||
Common stock; $2.50 par value; 1,000,000 shares authorized; | ||||
309,677 shares issued; and 308,977 shares outstanding | 774,193.00 | |||
Capital surplus | 1,530,320.00 | |||
Retained earnings | 6,635,259.00 | |||
Accumulated other comprehensive income | 37,753.00 | |||
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8,977,525.00 | ||||
Less: 700 shares held in treasury-at cost | (8,276.00) | |||
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Total stockholders' equity | 8,969,249.00 | |||
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TOTAL LIABILITIES AND STOCKHOLDERS EQUITY | 47,276,638.00 | |||
CONSOLIDATED STATEMENT OF INCOME | ||||
PEOPLES BANCSHARES OF POINTE COUPEE PARISH, INC. | ||||
AND SUBSIDIARY, NEW ROADS, LA. | ||||
(UNAUDITED) | ||||
Six months Ended June 30 | ||||
INTEREST INCOME | 2002 | 2001 | ||
Interest and fees on loans | 1,400,607.00 | 1,719,147.00 | ||
Interest on available-for-sale securities | 55,458.00 | 154,553.00 | ||
Interest on federal funds sold | 18,341.00 | 97,736.00 | ||
Interest on deposits in other banks | 28,878.00 | - | ||
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Total interest income | 1,503,284.00 | 1,971,436.00 | ||
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INTEREST EXPENSE | ||||
Interest on deposits | 396,323.00 | 789,191.00 | ||
Interest on federal funds purchased | 121.00 | 127.00 | ||
Interest on other borrowed funds | 20,879.00 | 57,820.00 | ||
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417,323.00 | 847,138.00 | |||
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NET INTEREST INCOME | 1,085,961.00 | 1,124,298.00 | ||
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Provisions (credit) for loan losses | - | 4,433.00 | ||
NET INTEREST INCOME AFTER PROVISION | ||||
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(CREDIT) FOR LOAN LOSSES) | 1,085,961.00 | 1,119,865.00 | ||
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NON-INTEREST INCOME | ||||
Service charges on deposit accounts | 81,912.00 | 78,985.00 | ||
Other service charges and fees | 209,273.00 | 182,258.00 | ||
Net gain on sales of loans | - | - | ||
Net realized gains on sales of | ||||
available-for-sale securities | - | - | ||
Other Income | 70,515.00 | 27,604.00 | ||
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Total other income | 361,700.00 | 288,847.00 | ||
NON-INTEREST EXPENSE | ||||
Salaries and Employee benefits | 430,535.00 | 438,973.00 | ||
Occupancy expenses | 94,206.00 | 93,080.00 | ||
Data processing expenses | 50,474.00 | 47,772.00 | ||
Other operating expenses | 244,148.00 | 253,723.00 | ||
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Total other expenses | 819,363.00 | 833,548.00 | ||
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INCOME BEFORE INCOME TAX EXPENSE | 628,298.00 | 575,164.00 | ||
Income tax expense | 211,000.00 | 188,000.00 | ||
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NET INCOME | 417,298.00 | 387,164.00 | ||
OTHER COMPREHENSIVE INCOME | ||||
unrealized holding gains (losses) arising during | ||||
the period net of taxes | 13,567.00 | 19,266.01 | ||
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13,567.00 | 19,266.01 | |||
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COMPREHENSIVE INCOME |
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430,865.00 | 406,430.01 | |||
Per common share data: | ||||
Net income | 1.35 | 1.24 | ||
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Cash Dividends | 0.55 | 0.55 | ||
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Average number of shares outstanding | 308,977.00 | 308,977.00 | ||
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PEOPLES BANCSHARES OF POINTE COUPEE PARISH, INC. AND SUBSIDIARY | ||||||||
NEW ROADS, LOUISIANA | ||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
SIX MONTHS ENDED JUNE 30, 2002 AND 2001 | ||||||||
2002 | 2001 | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||
Net Income | 417,298.00 | 387,164.00 | ||||||
Adjustments to reconcile net income to net cash | ||||||||
provided by operating activities | ||||||||
Gain on sale of assets | - | - | ||||||
Net realized gain from sale and maturities | ||||||||
of available-for-sale securities | - | - | ||||||
Net accretion of investment security discounts/ | ||||||||
amortization of investment security premium | (24,538.00) | (9,373.00) | ||||||
Provisions (credit) for loan losses | - | 4,433.00 | ||||||
Provisions for foreclosed real estate | 4,360.00 | 5,100.00 | ||||||
Depreciation | 28,898.00 | 30,199.00 | ||||||
Net changes in operating assets and liabilities: | ||||||||
Accrued interest receivable | (6,230.00) | (18,778.00) | ||||||
Other assets | (16,275.00) | (74,365.00) | ||||||
Accrued interest payable | (54,805.00) | (33,842.00) | ||||||
Other liabilities | 156,377.00 | 78,534.00 | ||||||
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Net cash provided by operating activities | 505,085.00 | 369,072.00 | ||||||
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CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||
Proceeds from sales and maturities of | ||||||||
available-for-sale securities | 1,296,000.00 | 6,000,000.00 | ||||||
Purchase of available-for-sale securities | (71,426.00) | (3,761,731.00) | ||||||
Net (increase) decrease in interest-bearing deposits in | ||||||||
other banks | (798,000.00) | - | ||||||
Purchase of other stocks | (6,300.00) | 16,700.00 | ||||||
Loan originations and principal collections, net | (4,074,875.00) | (4,239,058.00) | ||||||
Expenditures on foreclosed real estate | - | - | ||||||
Proceeds from sale of foreclosed real estate and other assets | 135,000.00 | - | ||||||
Purchases of bank premises & equipment | (23,114.00) | (40,112.00) | ||||||
Proceeds form sales of bank premises and equipment | - | - | ||||||
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Net cash provided by (used in) investment activities | (3,542,715.00) | (2,024,201.00) | ||||||
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PEOPLES BANCSHARES OF POINTE COUPEE PARISH, INC | ||||||||
NEW ROADS, LOUISIANA | ||||||||
CONSOLIDATED STATEMENT OF CASH FLOWS | ||||||||
SIX MONTHS JUNE 30, 2002 AND 2001 | ||||||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||
Net increase (decrease) in noninterest-bearing demand | ||||||||
deposit accounts, savings accounts, and NOW accounts | (423,253.00) | (132,154.00) | ||||||
Net increase in time deposits | (2,534,589.00) | (1,023,332.00) | ||||||
Net increase in fed funds borrowed | 100,000.00 | - | ||||||
Net increase in other borrowed funds | 1,000,000.00 | (1,500,000.00) | ||||||
Proceeds from sale of treasury stock | - | - | ||||||
Dividends paid | (169,937.00) | (169,937.00) | ||||||
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Net cash provided by (used in) financing activities | (2,027,779.00) | (2,825,423.00) | ||||||
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Net increase (decrease) in cash and due from banks | (5,062,481.00) | (4,480,552.00) | ||||||
Cash and cash equivalent-beginning of year | 6,544,591.00 | 6,069,687.00 | ||||||
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Cash and cash equivalent-end of year | 1,482,110.00 | 1,589,135.00 | ||||||
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Supplemental disclosures of cash flow information | ||||||||
Cash paid for interest | 472,129.00 | 813,297.00 | ||||||
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Cash paid for income taxes | 184,561.00 | 202,000.00 | ||||||
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PEOPLES BANCSHARES OF POINTE COUPEE PARISH, INC.
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
AS OF JUNE 30, 2002 AND 2001.
NOTE I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accounting principles followed by Peoples Bancshares of Pointe Coupee Parish,Inc. and its wholly owned subsidiary, Peoples Bank and Trust of Pointe Coupee Parish, Louisiana, are those which are generally practiced within the banking industry. The methods of applying those principles conform with generally accepted accounting principles and have been applied on a consistent basis. The principles which significantly affect the determination of financial position, results of operations, changes in stockholders' equity and changes in financial position are summarized below.
PRINCIPLES OF CONSOLIDATION: The consolidated financial statements included accounts of Peoples Bancshares of Pointe Coupee Parish, Inc. (the Company), and its wholly owned subsidiary, Peoples Bank and Trust Company of Pointe Coupee Parish, Louisiana (the Bank). All material intercompany accounts and transactions have been eliminated. Certain reclassification to previously published financial statements have been made to comply with current reporting requirements.
On December 9, 1983, the Bank was merged into Pointe Coupee Parish Bank and the surviving bank, Peoples Bank and Trust of Pointe Coupee Parish, Louisiana, became a wholly owned subsidiary of Peoples Bancshares of Pointe Coupee Parish, Inc. through a one-for-one exchange for all of the outstanding common stock of Peoples Bank and Trust of Pointe Coupee, Louisiana. The reorganization was accounted for as a pooling-of-interest. There were no material transactions prior to December 9, 1983 for Peoples Bancshares of Pointe Coupee Parish, Inc., and therefore the operations of the Company are those of the Bank and all previous periods presented.
REPORTING OF INCOME FOR TAX PURPOSES: With the information of the holding company, Peoples Bancshares of Pointe Coupee Parish, Inc., the consolidated federal income tax return will be filed for all companies by utilizing the tax method allowed.
INVESTMENT SECURITIES: The Bank's investments in securities are classified as available-for-sale securities and consist of bonds, notes, and debentures that are available to meet the Bank's operating needs. These securities are reported at fair value as determined by quoted market prices.
Unrealized holding gains and losses, net of tax, on available-for-sale securities are reported as a net amount in other comprehensive income. Gains and losses on the sale of investment securities are determined using the specific identification method. Realized gains (losses) on the sales and maturities of investment securities are classified as non-interest income and reported as a reclassification adjustment in other comprehensive income.
LOANS: Loans are stated at the principal amounts outstanding, less earned income and reserve for loan losses. Interest on commercial loans is accrued daily based on the principal outstanding. The accrual of interest on a loan is discontinued when, in the opinion of management, there is doubt about the ability of the borrower to pay interest or principal. Subsequent interest on such loans is recognized as income only when collected.
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Non-refundable service charges for the origination of loans are recorded as income in the period the related loans are made.
RESERVE FOR LOAN LOSSES: The provision for loan losses charged to operating expenses represents an amount based on past loan loss experience. Additional amounts are added based on management's evaluation of the loan portfolio under current economic conditions. The reserve for loan losses reflects an amount which, in management's judgment, is adequate to absorb potential loan losses.
BANK PREMISES AND EQUIPMENT: Bank premises and equipment are stated at cost less accumulated depreciation. Depreciation expense is computed on a straight-line basis over the estimated useful lives of the related assets. Such lives range from five to forty years for building and improvements, and from three to ten years for furniture, fixtures and equipment. Expenditures for additions, major renewals and betterments are capitalized, and maintenance and repairs are charged to expenses as incurred. The cost of assets retired or otherwise disposed of the related accumulated depreciation are eliminated from the accounts in the year disposal, and the resulting gain or loss is credited or charged to operations.
FEDERAL INCOME TAXES: Amounts provided for federal income taxes are based on earnings reported for financial statement purposes, adjusted for permanent differences between reported financial and taxable income. Deferred taxes are provided for timing differences related to certain income and expense items which are recognized for financial accounting purposes in one period and for tax purposes in another period.
PEOPLES BANCSHARES OF POINTE COUPEE PARISH, INC.
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
AS OF JUNE 30, 2002 AND 2001.
(Stated in whole dollars)
NOTE II: COMMON STOCK
The company has 1,000,000 shares of $2.50 par value common stock authorized with 309,677 shares issued and 308,977 outstanding.
The computation of earnings per share and other per share amounts of common stock is based on the actual number of common stock outstanding during each period.
NOTE III: EMPLOYEE BENEFITS
The Bank maintains a 401(k) savings plan for which the majority of its employees are eligible. The employer contributes to the plan based on the discretion of the Board of Directors. The Bank matches 50% of employee contributions up to 6% of each employee's salary.
The Bank maintains a deferred compensation agreement with several directors. Upon retirement, the Bank will pay the directors their deferred compensation plus interest. The Bank is the owner and beneficiary of several insurance policies covering the lives of these directors.
The Bank also maintains a supplemental executive retirement plan agreement with its
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president. Upon retirement, or in the event of death, the president, or his designated beneficiary, will receive the benefit over a 20 year period. The Bank is the owner and beneficiary of an insurance policy covering the life of the president. If employment is terminated "without cause" prior to retirement, the Bank will pay the president his accrued benefit, which is based on the number of months of completed service since January, 1996.
NOTE IV: COMMITMENTS
In the normal course of business, commitments under letters of credit outstanding were $204,575 at June 30, 2002 and $52,530 at June 30, 2001.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
YEAR TO DATE NET INCOME THROUGH AUGUST 6, 2002 WAS $558,534.50. CONTINUED STRONG EARNINGS ARE THE RESULTS OF A REDUCTION IN PROBLEM ASSETS, THEREBY DECREASING THE NEED FOR LOAN LOSS EXPENSES AND THE CONTINUED INTEREST RATE SPREAD OR MARGIN IN WHICH WE ARE NOW OPERATING.
MANAGEMENT CONTINUES TO PLACE STRONG EMPHASIS ON CREDIT QUALITY AND LOAN LOSS PROVISIONS.
STEPHEN P. DAVID
STEPHEN P. DAVID
PRESIDENT/CEO
PART II. |
OTHER INFORMATION |
ITEM 1. |
LEGAL PROCEEDING |
No legal proceedings have been instituted against the Company at this time. |
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ITEM 2. |
CHANGES IN SECURITIES |
No changes in securities as of this date. |
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ITEM 3. |
DEFAULTS UPON SENIOR SECURITIES |
No defaults upon securities as of this date. |
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ITEM 4. |
SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS |
No matters have been put to a vote of the security holders. |
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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.
Peoples Bancshares of Pointe Coupee Parish, Inc.
August 13, 2002 |
/s/ Stephen P. David |
Date |
Stephen P. David |
President/C.E.O. |
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August 13, 2002 |
/s/Joyce A. York |
Date |
Joyce A. York |
Senior Vice President/Cashier |
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Exhibit 99.1 |
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