UNITED STATES
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 March 31, 2009
/ / TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES
EXCHANGE ACT
For the transition period from to
Commission file Number 00-16934
BOL BANCSHARES, INC.
(Exact name of registrant as specified in its charter.)
Louisiana 72-1121561
(State of incorporation) (I.R.S. Employer Identification
No.)
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300 St. Charles Avenue, New Orleans, La. 70130
(Address of principal executive offices)
(504) 889-9400
(Registrant's telephone number)
Indicate by check mark whether the registrant (1) 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 whether the registrant is a large accelerated
filer, an accelerated filer, a non-accelerated filer, or a smaller reporting
company.
Large accelerated filer __ Accelerated filer __
Non-accelerated filer __ Smaller reporting company X
Indicate by check mark whether the registrant is a shell company (as
defined in Rule 12b-2 of the Exchange Act). Yes __ No X
Indicate the number of shares outstanding of each of the issuer's classes
of common stock, as of the latest practical date: 179,145 SHARES AS OF April
30, 2009.
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BOL BANCSHARES, INC. & SUBSIDIARY
INDEX
Page No.
PART I. Financial Information
Item 1. Financial Statements
Consolidated Statements of Condition 3
Consolidated Statements of Income 4
Consolidated Statements of Comprehensive Income 5
Consolidated Statements of Cash Flow 6
Notes to Consolidated Financial Statements 7
Item 2. Management's Discussion and Analysis 7
Item 3. Quantitative and Qualitative Disclosures about Market Risk
Catastrophic Events and Future Growth 9
Item 4T. Controls and Procedures 9
PART II. Other Information
Item 6. Exhibits 10
Signatures 11
2
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Part I. - Financial Information
BOL BANCSHARES, INC.
CONSOLIDATED STATEMENTS OF CONDITION
March 31, Dec. 31,
(Amounts in thousands) 2009 2008
Unaudited Audited
ASSETS
Cash and Due from Banks
Non-Interest Bearing Balances and Cash $2,990 $3,104
Federal Funds Sold 17,750 25,375
Certificates of Deposit 3,875 0
Investment Securities
Securities Held to Maturity 2,001 2,001
Securities Available for Sale 814 823
Loans-Less Allowance for Loan Losses of $1,800,000
in 2009 and 2008 56,751 55,608
Property, Equipment and Leasehold Improvements
(Net of Depreciation and Amortization) 6,415 6,516
Other Real Estate 1,214 1,153
Other Assets 802 926
TOTAL ASSETS $92,612 $95,506
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LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES
Deposits:
Non-Interest Bearing $34,938 $34,930
NOW Accounts 10,306 10,766
Money Market Accounts 3,647 3,667
Savings Accounts 21,903 22,717
Time Deposits, $100,000 and over 1,985 1,880
Other Time Deposits 5,580 7,018
TOTAL DEPOSITS 78,359 80,978
Notes Payable 1,543 1,543
Other Liabilities 1,181 1,533
TOTAL LIABILITIES 81,083 84,054
SHAREHOLDERS' EQUITY
Preferred Stock - Par Value $1
1,952,329 Shares Issued and Outstanding in 2009
1,997,360 Shares Issued and Outstanding in 2008 1,952 1,997
Common Stock - Par Value $1
179,145 Shares Issued and Outstanding in 2009 and 2008 179 179
Accumulated Other Comprehensive Income 471 477
Capital in Excess of Par - Retired Stock 167 158
Undivided Profits 8,641 7,917
Current Earnings 119 724
TOTAL SHAREHOLDERS' EQUITY 11,529 11,452
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $92,612 $95,506
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The accompanying notes are an integral part of these financial statements.
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BOL BANCSHARES, INC.
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
Three Months Ended
March 31, March 31,
(Amounts in thousands) 2009 2008
INTEREST INCOME
Interest and Fees on Loans $1,526 $1,726
Interest on Investment Securities 14 72
Interest on Federal Funds Sold 10 243
Interest on Certificates of Deposit 8 0
Total Interest Income 1,558 2,041
INTEREST EXPENSE
Interest on Deposits 93 219
Other Interest Expense 4 4
Interest Expense on Notes Payable and Debentures 24 24
Total Interest Expense 121 247
NET INTEREST INCOME 1,437 1,794
Provision for Loan Losses 95 62
NET INTEREST INCOME AFTER PROVISION
FOR LOAN LOSSES 1,342 1,732
NON-INTEREST INCOME
Service Charges on Deposit Accounts 94 122
Cardholder & Other Credit Card Income 102 119
Other Operating Income 236 623
Total Non-Interest Income 432 864
NON-INTEREST EXPENSE
Salaries and Employee Benefits 693 601
Occupancy Expense 269 243
Communications 53 55
Outsourcing Fees 359 387
Loan & Credit Card Expense 27 28
Professional Fees 53 44
ORE Expense 13 8
Other Operating Expense 186 174
Total Non-Interest Expense 1,653 1,540
Income Before Tax Provision 121 1,056
Provision For Income Taxes 2 359
NET INCOME $119 $697
Earnings Per Share of Common Stock $0.67 $3.89
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The accompanying notes are an integral part of these financial statements.
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BOL BANCSHARES, INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited)
Three Months Ended
March 31, March 31,
(Amounts in thousands) 2009 2008
NET INCOME $119 $697
OTHER COMPREHENSIVE INCOME, NET OF TAX
Unrealized Holding Gains on Investment
Securities Available-for-Sale, Arising
During the Period (6) -
COMPREHENSIVE INCOME $113 $697
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The accompanying notes are an integral part of these financial statements.
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BOL BANCSHARES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
FOR THE THREE MONTHS ENDED MARCH 31,
(Amounts in thousands) 2009 2008
OPERATING ACTIVITIES
Net Income $119 $697
Adjustments to Reconcile Net Income to Net
Cash Provided by Operating Activities:
Provision for Loan Losses 95 62
Depreciation and Amortization Expense 101 106
Amortization of Investment Security Premiums 0 (3)
Decrease in Deferred Income Taxes (21) 0
Decrease in Other Assets 148 57
(Decrease) in Other Liabilities and
Accrued Interest (352) (876)
Net Cash Provided by Operating Activities 90 43
INVESTING ACTIVITIES
Proceeds from Held-to-Maturity Investment Securities
Released at Maturity 0 8,000
Purchases of Held-to-Maturity Investment Securities 0 (2,000)
Increase in Certificate of Deposit with Other Banks (3,875) 0
Purchases of Property and Equipment 0 (75)
Net (Increase) Decrease in Loans (1,299) 1,166
Net Cash (Used in) Provided by Investing Activities (5,174) 7,091
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FINANCING ACTIVITIES
Net (Decrease) Increase in Non-Interest Bearing
and Interest Bearing Deposits (2,619) 863
Preferred Stock Retired (36) (28)
Net Cash (Used in) Provided by Financing Activities (2,655) 835
Net (Decrease) Increase in Cash and Cash Equivalents (7,739) 7,969
Cash and Cash Equivalents - Beginning of Year 28,479 31,651
Cash and Cash Equivalents - End of Period $20,740 $39,620
SUPPLEMENTAL DISCLOSURES: 2009 2008
Cash Paid During the Year for Interest $192 $226
Cash Paid During the Year for Income Taxes $0 $4
Market Value Adjustment for Unrealized Gain (Loss)
on Securities Available-for-Sale ($9) $0
Additions to Other Real Estate Thru Foreclosure $61 $0
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The accompanying notes are an integral part of these financial statements.
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BOL BANCSHARES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Note A
Summary of Accounting Policies
Basis of Presentation
The accompanying consolidated financial statements include the accounts
of the Company and its wholly-owned subsidiary, Bank of Louisiana (the Bank),
and the Bank's wholly owned subsidiary, BOL Assets, LLC. These consolidated
financial statements were prepared in accordance with instructions for Form 10-
Q and Regulation S-X, and do not include information or footnotes for a
complete presentation of financial condition, results of operations, and cash
flows in conformity with accounting principles generally accepted in the United
States of America. However, in the opinion of management, all adjustments
(consisting of normal recurring adjustments) necessary for a fair presentation
of the financial statements have been included.
Use of Estimates
In preparing consolidated financial statements in conformity with
accounting principles generally accepted in the United States of America,
management is required to make estimates and assumptions that affect the
reported amounts of assets and liabilities as of the date of the Consolidated
Statements of Financial Condition and reported amounts of revenues and expenses
during the reporting period. Actual results could differ from those estimates.
Material estimates that are particularly susceptible to significant change in
the near term relate to the allowance for loan losses.
Cash and Cash Equivalents
Cash equivalents include amounts due from banks and federal funds sold.
Generally, federal funds are purchased and sold for one-day periods.
ITEM 2. - MANAGEMENT'S DISCUSSION AND ANALYSIS
Hurricane Katrina Disclosure
Insurance proceeds received for storm damages caused by Hurricane
Katrina has covered the damages sustained to the Bank's branches. Ample
proceeds remain in the contingency account to cover the small percentage of
repairs remaining. Of the 7 branch locations that were affected by Hurricane
Katrina, only the Carrollton branch was not reopened. The Company's management
team and employees have and are continuing to work diligently to control
operating expenses and costs while restoring normal business operations.
MARCH 31, 2009 COMPARED WITH DECEMBER 31, 2008
BALANCE SHEET
Total Assets at March 31, 2009 were $92,612,000 compared to $95,506,000
at December 31, 2008 a decrease of $2,894,000 or 3.03%. Federal Funds Sold
decreased $7,625,000 to $17,750,000 at March 31, 2009 from $25,375,000 at
December 31, 2008. This decrease was mainly attributable to the purchase of
Certificates of Deposit for a total of $3,875,000 with other banks during the
first quarter of 2009 at a higher interest rate then Federal Funds are paying.
The remainder is due to having less available to sell due to the balance sheet
shrinking back to pre-Katrina levels. Total loans increased $1,143,000 or 2.06%
to $56,751,000 at March 31, 2009 from $55,608,000 at December 31, 2008. This
increase in the loan portfolio from December 31, 2008 to March 31, 2009 is due
mainly to an increase in 1-4 family loans of $936,000, an increase in non farm-
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non residential loans of $454,000, an increase in construction loans of
$209,000 and an increase of $200,000 in commercial loans which was offset by a
decrease in personal loans of $70,000. Also there was a decrease in the credit
card portfolio of $568,000 which was largely attributable to (i) competition
from other banks and non-traditional credit card issuers; (ii) tightening of
the Bank's underwriting standards; and (iii) normal attrition.
Total deposits decreased $2,619,000 or 3.23% to $78,359,000 at March 31,
2009 from $80,978,000 at December 31, 2008. Total interest bearing deposits
decreased $2,627,000, due to a special promotion of time deposits that matured
in the amount of $1,333,000, a decrease in savings of $814,000 and a decrease
in NOW accounts of $460,000. Non interest bearing accounts increased $8,000.
Shareholder's Equity increased $77,000 due mainly to net income of
$119,000 at March 31, 2009, and a decrease in Preferred Stock of $45,000.
THREE MONTHS ENDED MARCH 31, 2009 COMPARED WITH THREE MONTHS ENDED MARCH 31,
2008
INCOME
The Company's net income for the three months ended March 31, 2009 was
$119,000 or $.67 per share for a decrease of $578,000 from the Company's net
income of $697,000 or $3.89 per share for the same period last year.
Interest income decreased $483,000 for the three months ended March 31,
2009 over the same period last year. This was caused by a decrease of $233,000
in interest received on Federal Funds sold. This decrease was due mainly to a
decrease in the interest rate paid on Federal Funds sold from 3.15% at March
31, 2008 to .20% at March 31, 2009. The average balance of Federal Funds sold
decreased from $30,844,000 at March 31, 2008 to $21,189,000 at March 31, 2009.
Loan interest income decreased due mainly to a decrease in the average rate
from 12.34% at March 31, 2008 to $10.84% at March 31, 2009. Investment
securities interest decreased $58,000 due mainly to a decrease in the average
balance of investment securities from $7,598,000 at March 31, 2008 to
$2,821,000 at March 31, 2009. This was due mainly to investment securities of
$8,000,000 that were called and $2,000,000 purchased in the first quarter of
2008. The average balance of Certificates of Deposits purchased was $2,547,000
at an average interest rate of 1.29% for 2009 as compared to $0 for 2008.
Interest expense decreased $126,000 for the three months ended March 31,
2009 over the same period last year. This was due to a decrease in the average
interest rate on interest bearing deposits from a rate of 1.75% at March 31,
2008 to a rate of .84% at March 31, 2009. Additionally there was a decrease in
the average balance of interest bearing deposits from $50,025,000 at March 31,
2008 to $44,192,000 at March 31, 2009.
Net interest income decreased $357,000. Interest rate spreads decreased
from 6.73% at March 31, 2008 to 6.46% at March 31, 2009.
Non-interest income decreased $432,000 for the three months ended March
31, 2009 as compared to the same period last year. This decrease is due mainly
to the sale of Visa stock for a gain of $578,000 in the first quarter of 2008.
In the first quarter of 2009 there was a decrease in deposit related fees of
$28,000 of which $23,000 was due to a decrease in fees collected on overdrawn
accounts. Cardholder and other credit card fees decreased $17,000. This was
offset by an increase in miscellaneous income of $150,000 in the first quarter
of 2009 from the insurance proceeds from Hurricane Katrina that was not needed
for repairs.
Non-interest expense increased $113,000 for the three months ended March
31, 2009 as compared to the same period last year. Salaries and Employee
Benefits increased $92,000 in the first quarter of 2009, which was due mainly
to payroll expenses of $84,000 for 2007 that was not paid until 2008 resulting
in a credit of $84,000 in 2008 for 14 days payroll, compared to a credit of
$17,000 for 4 days in 2009. Occupancy expense increased $26,000. Outsourcing
fees decreased $28,000 due mainly to credit card interchange fees of $221,000
for the three months ended March 31, 2008 compared to $183,000 for the three
months ended March 31, 2009.
The provision for income taxes decreased $357,000 compared to the same
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period last year from $359,000 at March 31, 2008 to $2,000 at March 31, 2009
due to a decrease in income before taxes from $1,056,000 at March 31, 2008 to
$121,000 at March 31, 2009.
Item 3. Quantitative and Qualitative Disclosures about Market Risk,
Catastrophic Events, and Future Growth
Management considers interest rate risk to be a market risk that could
have a significant effect on the financial condition of the Company.
Additional risks and uncertainties not currently known to us or that we
currently deem to be immaterial also may materially adversely affect our
business, financial condition, and/or operating results. Difficult conditions
in the financial services markets may materially and adversely affect the
business and results of operations of the Bank and the Company.
Dramatic declines in the housing market during the past year, along with
falling home prices and increasing foreclosures and unemployment, have resulted
in significant write downs of asset values by financial institutions, including
government-sponsored entities and major commercial and investment banks. These
write-downs, initially of mortgage-backed securities by spreading to credit
default swaps and other derivative securities, have caused many financial
institutions to seek additional capital, to merge with larger and stronger
institutions, and, in some cases, to fail. Many lenders and institutional
investors have reduced, and in some cases, ceased to provide funding to
borrowers, including other financial institutions. This market turmoil and
tightening of credit have led to an increased level of commercial and consumer
delinquencies, lack of consumer confidence, increased market volatility, and
widespread reduction of business activity generally, which could have a
material adverse effect on our business and operations. A worsening of these
conditions would likely exacerbate any adverse effects of these difficult
market conditions on us and others in the financial institutions industry.
However, the majority of small community banks, such as Bank of Louisiana,
have strong reserve positions and are well capitalized.
The occurrence of catastrophic events such as hurricanes, tropical
storms, earthquakes, windstorms, floods, severe winter weather, fires and other
catastrophes could adversely affect our consolidated financial condition or
results of operations. Unpredictable natural and other disasters could have an
adverse effect on us in that such events could materially disrupt our
operations or the ability or willingness of our customers to access financial
services offered by us. The incidence and severity of catastrophic events
could nevertheless reduce our earnings and cause volatility in our financial
results for any fiscal quarter or year and have a material adverse effect on
our financial condition or results of operation.
The Company is a customer-focused organization. Future growth is
expected to be driven in a large part by the relationships maintained with
customers. While the Company has assembled an experienced management team, and
has management development plans in place, the unexpected loss of key employees
could have a material adverse effect on the Company's business and may result
in lower revenues.
Item 4T Controls and Procedures
Under the supervision and with the participation of our management, we
evaluated the effectiveness of the design and operation of our disclosure
controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the
Securities and Exchange Act of 1934) as of the end of the period covered by
this report. Based upon that evaluation, the certifying officers of the
Company have concluded that, as of the end of the period covered by this
report, our disclosure controls and procedures are effective to ensure that
information required to be disclosed in the reports that the Company files or
submits under the Securities and Exchange Act of 1934, is recorded, processed,
summarized and reported within the applicable time periods specified by the
Securities and Exchange Commission's rules and forms. There has been no change
in the Company's internal control over financial reporting during the Company's
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most recent fiscal quarter that has materially affected, or is reasonably
likely to materially affect, the Company's internal control over financial
reporting.
PART II - OTHER INFORMATION
Item 6 Exhibits
Exhibits
31.1 Rule 13a-14(a)/15d-14(a) Certification of Principal Executive
Officer
31.2 Rule 13a-14(a)/15d-14(a) Certification of Principal Financial
Officer
32 Certification Pursuant to 18 U.S.C. Section 1350
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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.
BOL BANCSHARES, INC.
/s/ G. Harrison Scott
May 7, 2009 G. Harrison Scott
Date Chairman
(in his capacity as a duly authorized
officer of the Registrant)
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/s/ Peggy L. Schaefer
Peggy L. Schaefer
Treasurer
(in her capacity as Chief Accounting
Officer of the Registrant)
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BOL Bancshares (GM) (USOTC:BOLB)
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過去 株価チャート
から 6 2023 まで 6 2024
