-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, KVxOApZZYRsD545LuQKVTBAENNIK2KnBBg6JrHChz6y61mqLnd+lHRUcsriTAGy/ Qbwfpmu1rwHng3Nn+G7lCA== 0000928385-97-001883.txt : 19971117 0000928385-97-001883.hdr.sgml : 19971117 ACCESSION NUMBER: 0000928385-97-001883 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19970930 FILED AS OF DATE: 19971114 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: CBES BANCORP INC CENTRAL INDEX KEY: 0001017308 STANDARD INDUSTRIAL CLASSIFICATION: STATE COMMERCIAL BANKS [6022] IRS NUMBER: 431753244 STATE OF INCORPORATION: DE FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: 10QSB SEC ACT: SEC FILE NUMBER: 000-21163 FILM NUMBER: 97718007 BUSINESS ADDRESS: STREET 1: 1001 N JESSE JAMES RD CITY: EXCELSIOR SPRINGS STATE: MI ZIP: 64024 BUSINESS PHONE: 8166306711 MAIL ADDRESS: STREET 1: 1011 N JESSE JAMES RD STREET 2: 1011 N JESSE JAMES RD CITY: EXCELSIOR SPRINGS STATE: MI ZIP: 64024 10QSB 1 FORM 10-QSB FOR 9/30/97 SECURITIES AND EXCHANGE COMMISSION WASHINGTON D.C. 20549 FORM 10-QSB (Mark One) [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 1997 [ ] 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 0-21163 --------------- CBES BANCORP,INC. ----------------------------------------------------------------- (Exact name of small business issuer as specified in its charter) DELAWARE 43-1753244 -------------------------------------------------------------- (State or other jurisdiction of incorporation or organization) (IRS Employer Identification No.) 1001 N. JESSE JAMES ROAD, EXCELSIOR SPRINGS, MO 64024 ----------------------------------------------------- (Address of principal executive offices) (816 630-6711) -------------- (Issuer's telephone number) NOT APPLICABLE ---------------------------------------------------- (Former name, former address and former fiscal year, if changed since last report) Check whether the issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. YES X NO -- -- Indicate the number of shares outstanding of each of the issuer's classes of common equity, as of the last practicable date: Class Outstanding at November 10, 1997 - --------------------------------- -------------------------------- Common stock, .01 par value 1,024,958 CBES BANCORP,INC. AND SUBSIDIARIES TABLE OF CONTENTS PART I - FINANCIAL INFORMATION Item 1. Financial Statements: Consolidated Statements of Financial Condition at September 30, 1997 (unaudited) and June 30, 1997........1 Consolidated Statements of Earnings for the three months ended September 30, 1997 and 1996 (unaudited)....2 Consolidated Statements of Stockholders' Equity for the three months ended September 30, 1997 (unaudited)...3 Consolidated Statements of Cash Flows for the three months ended September 30, 1997 and 1996 (unaudited)....4 Notes to Consolidated Financial Statements (unaudited)....5 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations.......................6 PART II - OTHER INFORMATION...........................................11 SIGNATURES............................................................12 1 CBES BANCORP,INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION SEPTEMBER 30, 1997 AND JUNE 30, 1997
September 30, June 30 Assets 1997 1997 ------ --------------- ------------ (unaudited) Cash $ 631,689 $ 588,056 Interest-bearing deposits in other financial institutions 3,936,161 3,544,294 Investment securities available-for-sale (amortized cost of $1,000,375 and $1,000,750 respectively) 998,200 996,320 Investment securities held-to-maturity 100,000 100,000 Mortgage-backed securities held-to-maturity (estimated fair value of $107,523 and $156,176 respectively) 105,196 154,352 Loans held-for-sale, net 845,672 696,617 Loans receivable, net 95,241,917 90,320,430 Accrued interest receivable: Loans receivable 726,812 688,408 Investment securities 6,495 20,028 Mortgage-backed securities 1,399 1,697 Real Estate Owned 267,928 168,204 Stock in Federal Home Loan Bank (FHLB), at cost 810,700 810,700 Office property and equipment, net 1,274,501 1,237,823 Deferred income tax benefit - 7,000 Cash surrender value of life insurance and other assets 1,688,576 1,742,557 ----------- ------------ Total assets $106,635,246 $101,076,486 ============ ============ Liabilities and Stockholders' Equity ------------------------------------ Liabilities: Deposits $ 76,580,946 70,692,900 FHLB advances and other borrowings 9,750,000 10,750,000 Accrued expenses and other liabilities 807,791 741,009 Accrued interest payable on deposits 97,694 97,966 Advance payments by borrowers for property taxes and insurance 964,487 725,518 Current income taxes payable 380,115 294,604 Deferred income taxes 14,647 - ------------ ----------- Total liabilities 88,595,680 83,301,997 ------------ ----------- Stockholders' equity: Preferred stock, $.01 par, 500,000 shares authorized, none issued or outstanding - - Common stock, $.01 par; 3,500,000 shares authorized, 1,024,958 shares issued and outstanding 10,250 10,250 Additional paid-in capital 9,752,028 9,728,357 Retained earnings, substantially restricted 8,988,283 8,777,980 Unrealized losses on available-for-sale securities, net of tax) (1,305) (2,658 Unearned employee benefits) (709,690) (739,440 ------------ ----------- Total stockholders' equity 18,039,566 17,774,489 ------------ ----------- Total liabilities and stockholders' equity $106,635,246 101,076,486 ============ ============
See accompanying notes to unaudited consolidated financial statements. 2 CBES BANCORP,INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED)
Three Months Ended September 30 --------------------- 1997 1996 ---------- --------- Interest income: Loans receivable $2,100,811 1,747,374 Mortgage-backed securities 1,938 5,945 Investment securities 11,398 26,767 Loans held-for-sale 15,943 13,680 Other 37,876 20,401 ---------- --------- Total interest income 2,167,966 1,814,167 ---------- --------- Interest expense: Deposits 882,891 761,056 FHLB advances 135,494 179,434 ---------- --------- Total interest expense 1,018,385 940,490 ---------- --------- Net interest income 1,149,581 873,677 Provision for loan losses 79,978 18,338 ---------- --------- Net interest income after provision for loan losses 1,069,603 855,339 ---------- --------- Noninterest income: Gain on sale of loans, net 56,735 48,377 Customer service charges 61,816 51,861 Loan servicing fees 17,780 20,793 Other 34,547 32,218 ---------- --------- Total noninterest income 170,878 153,249 ---------- --------- Noninterest expense: Compensation and benefits 418,007 307,067 Office property and equipment 79,494 71,145 Data processing 38,673 45,501 Federal insurance premiums 11,413 492,269 Advertising 10,967 9,611 Real estate owned and repossessed assets 27,931 6,878 Other 157,878 112,840 ---------- --------- Total noninterest expense 744,363 1,045,311 ---------- --------- Earnings before income taxes 496,118 (36,723) Income tax expense 191,256 (18,921) ---------- --------- Net earnings $ 304,862 (17,802) ========== ========= Earnings per share $.32 (.02) ========== ========= Average common shares outstanding 952,357 942,962 ========== =========
See accompanying notes to unaudited consolidated financial statements. 3 CBES BANCORP,INC. AND SUBSIDIARIES CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY FOR THE THREE MONTHS ENDED SEPTEMBER 30, 1997 (UNAUDITED)
Net Additional unrealized Unearned Total Outstanding Common paid-in Retained gain (loss) employee stockholders' shares stock capital earnings on securities benefits equity ----------- ------ ---------- --------- ------------- -------- ------------ Balance at June 30, 1997 1,024,958 $10,250 9,728,357 8,777,980 (2,658) (739,440) 17,774,489 Net earnings - - - 304,862 - - 304,862 Dividends declared - - - (94,559) - - (94,559) ($.10 per share payable October 21, 1997) Change in unrealized loss on securities available- for-sale, net of tax - - - - 1,353 - 1,353 Allocation of ESOP shares - - 23,671 - - 29,750 53,421 --------- ------- --------- --------- ------ -------- ---------- Balance at September 30, 1997 1,024,958 $10,250 9,752,028 8,988,283 (1,305) (709,690) 18,039,566 ========= ======= ========= ========= ====== ======== ==========
See accompanying notes to unaudited consolidated financial statements. 4 CBES BANCORP,INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE THREE MONTHS ENDED SEPTEMBER 30, 1997 AND 1996 (UNAUDITED)
1997 1996 ------------- ------------ Cash flows from operating activities: Net earnings $ 304,862 (17,802) Adjustments to reconcile net earnings to net cash provided by operating activities: Provision for loan losses 79,978 18,338 Depreciation 41,050 35,493 Allocation of ESOP shares 53,421 - Proceeds from sale of loans held for sale 3,098,557 3,634,378 Originations of loans held for sale (3,190,877) (3,312,000) Gain on sale of loans, net (56,735) (48,378) Premium amortization and accretion of discounts and deferred loan fees (108,706) (80,970) Deferred income taxes 20,745 24,061 Changes in assets and liabilities: Accrued interest receivable (24,573) (14,961) Other assets 53,981 (299,552) Accrued expenses and other liabilities 66,782 361,676 Accrued interest payable on deposits (272) 4,780 Current income taxes payable 85,511 (106,803) ----------- ----------- Net cash provided by operating activities 423,724 198,260 ----------- ----------- Cash flows from investing activities: Net increase in loans receivable (4,992,108) (2,272,381) Mortgage-backed securities principal repayments 49,156 12,412 Purchase of office property and equipment (77,728) (39,260) ----------- ----------- Net cash used in by investing activities $(5,020,680) (2,299,229) ----------- ----------- Cash flows from financing activities: Increase (decrease) in deposits $ 5,888,046 (2,525,989) Proceeds from FHLB advances 2,500,000 11,000,000 Repayments of FHLB advances (3,500,000) (11,000,000) Increase in advance payments by borrowers for property taxes and insurance 238,969 232,821 Issuance of common stock, net of issuance costs of $512,500 - 8,917,120 Dividends paid (94,559) - ----------- ----------- Net cash provided by financing activities 5,032,456 6,623,952 ----------- ----------- Net increase in cash and cash equivalents 435,500 4,522,983 Cash and cash equivalents at the beginning of the period 4,132,350 3,459,359 ----------- ----------- Cash and cash equivalents at the end of the period $ 4,567,850 7,982,342 =========== =========== Supplemental disclosure of cash flow information: Cash paid during the period for income taxes $ 85,000 63,821 =========== =========== Cash paid during the period for interest $ 1,018,113 935,710 =========== =========== Supplemental schedule of noncash investing and financing activities: Conversion of loans to real estate owned $ 99,724 - =========== =========== Dividends declared and payable October 21, 1997 $ 94,559 - =========== ===========
See accompanying notes to unaudited consolidated financial statements. 5 CBES BANCORP,INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) SEPTEMBER 30, 1997 (1) CBES BANCORP,INC. AND SUBSIDIARIES ---------------------------------- CBES Bancorp, Inc. (the Company) was incorporated under the laws of the state of Delaware for the purpose of becoming the savings and loan holding company of Community Bank of Excelsior Springs, a Savings Bank (the Bank) in connection with the Bank's conversion from a federally chartered mutual savings bank to a federally chartered stock savings bank, pursuant to its Plan of Conversion. On August 12, 1996, the Company commenced a Subscription and Community Offering of its shares in connection with the conversion of the Bank (the Offering). The Offering was consummated and the Company acquired the Bank on September 27, 1996. The Company had no assets prior to the conversion and acquisition on September 27, 1996. (2) BASIS OF PREPARATION -------------------- The accompanying unaudited consolidated financial statements were prepared in accordance with instructions for Form 10-QSB. To the extent that information and footnotes required by generally accepted accounting principles for complete financial statements are contained in or consistent with the audited financial statements incorporated by reference in the Company's Annual Report on Form 10-KSB for the year ended June 30, 1997, such information and footnotes have not been duplicated herein. In the opinion of management, all adjustments, consisting only of normal recurring accruals, which are necessary for the fair presentation of the interim financial statements have been included. The statement of earnings for the three month period ended September 30, 1997 is not necessarily indicative of the results which may be expected for the entire year. The June 30, 1997 consolidated balance sheet has been derived from the audited consolidated financial statements as of that date. (3) PRO FORMA EARNINGS PER SHARE ---------------------------- On September 27, 1996, 1,024,958 shares of the Company's stock were issued, including 81,996 shares issued to the ESOP. Earnings per share of common stock have been determined by dividing net earnings for the period by the weighted average number of shares of common stock outstanding, less unallocated ESOP shares. (4) EMPLOYEE STOCK OWNERSHIP PLAN ----------------------------- All employees meeting age and service requirements are eligible to participate in an ESOP established on September 27, 1996. Contributions made by the Bank to the ESOP are allocated to participants by a formula based on compensation. Participant benefits become 100% vested after five years. The ESOP purchased 81,996 shares in the Bank's conversion. The ESOP expense for the three months ended September 30, 1997 was $53,421. 6 MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS The following discussion compares the financial condition of CBES Bancorp,Inc. and its wholly-owned subsidiary, Community Bank of Excelsior Springs, a Savings Bank, (collectively the Bank) at September 30, 1997 to the financial condition at June 30, 1997, its fiscal year-end, and the results of operations for the three months ended September 30, 1997, with the same periods in 1996. This discussion should be read in conjunction with the interim financial statements and notes which are included herein. GENERAL - ------- CBES Bancorp,Inc. was organized as a Delaware corporation in June 1996 to acquire all of the capital stock issued by Community Bank of Excelsior Springs, a Savings Bank upon its conversion from the mutual to stock form of ownership. Community Bank of Excelsior Springs, a Savings Bank was founded in 1931 as a Missouri chartered savings and loan association located in Excelsior Springs, Missouri. In 1995, its members voted to convert to a federal charter. The business of the holding company consists primarily of the business of the Bank. The Bank conducts its business through its main office in Excelsior Springs, Clay County, Missouri and its full service branch office located in Kearney, Clay County, Missouri. The Bank plans to open a full service branch office in Liberty, Missouri in early 1998. The Bank has been, and intends to continue to be, a community oriented financial institution offering selected financial services to meet the needs of the community it serves. The Bank attracts deposits from the general public and historically has used such deposits, together with other funds, primarily to originate one-to-four family residential mortgage loans, construction and land loans for single-family residential properties, and consumer loans consisting primarily of loans secured by automobiles. While the Bank's primary business has been that of a traditional thrift institution, originating loans in its primary market area for retention in its portfolio, the Bank also has been an active participant in the secondary market, originating residential mortgage loans for sale. The most significant outside factors influencing the operations of the Bank and other financial institutions include general economic conditions, competition in the local market place and the related monetary and fiscal policies of agencies that regulate financial institutions. More specifically, the cost of funds primarily consisting of insured deposits is influenced by interest rates on competing investments and general market rates of interest, while lending activities are influenced by the demand for real estate financing and other types of loans, which in turn is affected by the interest rates at which such loans may be offered and other factors affecting loan demand and funds availability. The deposits of the Bank are presently insured by the Savings Association Insurance Fund ("SAIF"), which together with the Bank Insurance Fund ("BIF") are the two insurance funds administered by the FDIC. In the third calendar quarter of 1995, the FDIC lowered the premium schedule for BIF-insured institutions in anticipation of the BIF achieving its 7 statutory reserve ratio. The reduced premium created a significant disparity in deposit insurance expense causing a competitive advantage for BIF members. Legislation enacted on September 30, 1996 provided for a one-time special assessment of .657% of the Bank's SAIF insured deposits at March 31, 1995. The purpose of the assessment was to bring the SAIF to its statutory reserve ratio. Based on the above formula, the Bank charged $441,000 against earnings for the quarter ended September 30, 1996. Although the special one- time assessment significantly increased noninterest expense for that quarter, the anticipated reduction in the premium schedule will reduce the Bank's federal insurance premiums for the future periods. Congress may consider legislation requiring all federal thrift institutions, such as the Bank, to either convert to a national bank or a state depository institution by January 1, 1999. In addition, the Company might no longer be regulated as a thrift holding company, but rather as a bank holding company. The Office of Thrift Supervision (OTS) also might be abolished and its functions transferred among the federal banking regulators. Certain aspects of the legislation remain to be resolved and, therefore, no assurance can be given as to whether or in what form the legislation will be enacted or its effect on the Company and the Bank. FINANCIAL CONDITION - ------------------- Total assets increased $5.6 million, or 5.5%, to $106.6 at September 30, 1997 from $101.1 million at June 30, 1997. This was primarily due to an increase in loans receivable, net of $5.1 million, which were funded with deposits. Loans receivable, net increased by $5.1 million, or 5.6%, to $96.1 million at September 30, 1997 from $91.0 million at June 30, 1997 primarily due to an increase in one-to-four family portfolio loans of $2.3 million, an increase in one-to-four family construction loans of $1.9 million, and an increase in five- or-more dwelling portfolio loans of $1.0 million. Deposits increased $5.9 million, or 8.3%, to $76.6 million at September 30, 1997 from $70.7 million at June 30, 1997. The increase in deposits is due to $5.9 million in new certificates of deposit. FHLB advances decreased $1.0 million, or 9.3%, to $9.8 million at September 30, 1997 from $10.8 million at June 30, 1997. The decrease is primarily due to $1.0 million in new certificates of deposit being used to pay down FHLB advances. Total equity increased $0.3 million, or 1.5%, to $18.0 million at September 30, 1997 primarily due to earnings for the quarter ended September 30, 1997 of $0.3 million. 8 COMPARISON OF OPERATING RESULTS FOR THE THREE MONTHS ENDED MARCH 31, 1997 AND - ----------------------------------------------------------------------------- 1996 - ---- Performance Summary. For the three months ended September 30, 1997, the Company had net earnings of $305,000 compared to a net loss of $18,000 for the quarter ended September 30, 1996. The increase in earnings was primarily due to an increase in interest income of $354,000, and a decrease in non-interest expense of $301,000, offset by an increase in interest expense of $78,000, an increase in the provision for loan losses of $62,000, and an increase in income taxes of $210,000. Net Interest Income. For the three months ended September 30, 1997, net interest income increased by $276,000, or 31.6%, to $1,150,000 from $874,000 for the three months ended September 30, 1996. The increase reflected an increase of $354,000 in interest income, to $2,168,000 from $1,814,000, and an increase of $78,000 in interest expense to $1,018,000 from $940,000. Provision for Loan Losses. During the three months ended September 30, 1997, the Bank charged $80,000 against earnings as a provision for loan losses compared to a provision of $18,000 for the three months ended September 30, 1996. The increase in provision for loan losses is a result of an overall increase in the loan portfolio, and in particular one-to-four family construction loans, one-to-four family portfolio loans, and five-or-more dwelling loans. This charge resulted in an allowance for loan losses of $511,000 or .54% of loans receivable, net at September 30, 1997 compared to $436,000, or .48% of loans receivable, net at June 30, 1997. The allowance for loan losses is based on a detailed review of nonperforming and other problem loans, prevailing economic conditions, actual loss experience and other factors which, in management's view, recognize the changing composition of the Bank's loan portfolio and the inherent risk associated with different types of loans. Management will continue to monitor its allowance for loan losses and make future additions to the allowance through the provision for loan losses as economic conditions dictate. Although the Bank maintains its allowance for loan losses at a level which it considers to be adequate to provide for potential losses, there can be no assurance that future losses will not exceed estimated amounts or that additional provisions for loan losses will not be required in future periods. Non-Interest Income. For the three months ended September 30, 1997, non- interest income increased $18,000 to $171,000 from $153,000 for the prior year period primarily due to an increase in the gain on sale of loans, net,of $8,000, and an increase in customer service charges of $10,000 during the three months ended September 30, 1997. Non-Interest Expense. Non-interest expense decreased by $301,000 to $744,000 for the three months ended September 30, 1997 from $1,045,000 for the three months ended September 30, 1996. During the quarter ended September 30, 1996, the company paid a $441,000 one-time special SAIF assessment. Personnel costs increased $111,000 in 1997 compared to 1996, primarily due to expense associated with the ESOP plan and new employees. 9 NONPERFOMING ASSETS - ------------------- On September 30, 1997, nonperforming assets were $630,000 compared to $1,157,000 on June 30, 1997. The balance of the Bank's allowance for loan losses was $511,000 or 81.1% of nonperforming assets. Loans are considered nonperforming when the collection of principal and/or interest is not probable, or in the event payments are more than ninety days delinquent. CAPITAL RESOURCES - ----------------- The Bank is subject to three capital to asset requirements in accordance with Office of Thrift Supervision regulations. The following table is a summary of the Bank's regulatory capital requirements versus actual capital as of September 30, 1997: Actual Required Excess amount/percent amount/percent amount/percent -------------- -------------- -------------- (Dollars in thousands) Tangible $12,883 12.09% $1,599 1.50% $11,284 10.59% Core leverage capital 12,883 12.09% 3,199 3.00% 9,684 9.09% Risk-based capital 13,243 15.10% 7,017 8.00% 6,226 7.10% LIQUIDITY - --------- The Bank's principal sources of funds are deposits, principal and interest payments on loans, deposits in other insured institutions and investment securities classified as available-for-sale. While scheduled loan repayments and maturing investments are relatively predictable, deposit flows and early loan prepayments are more influenced by interest rates, general economic conditions and competition. Additional sources of funds may be obtained from the Federal Home Loan Bank of Des Moines by utilizing numerous available products to meet funding needs. The Bank is required to maintain levels of liquid assets as defined by regulations. The required percentage is currently 5% of net withdrawable savings deposits and borrowings payable on demand or in one year or less. The eligible liquidity ratios at September 30, 1997 and June 30, 1997 were 6.38% and 6.37%, respectively. In light of the competition for deposits, the Bank may utilize the funding sources of the Federal Home Loan Bank to meet demand in accordance with the Bank's growth plans. The wholesale funding sources may allow the Bank to obtain a lower cost of funding and create a more efficient liability match to the respective assets being funded. Given the current strong loan demand, it may be necessary for the Bank to continue to use advances. For purposes of the cash flow statements, all short-term investments with a maturity of three months or less at date of purchase are considered cash equivalents. Cash and cash equivalents at September 30, 1997 and 1996 were $4.6 million and $8.0 million respectively. 10 Cash flows from operating activities. Net cash provided by operating activities increased to $424,000 for the three months ended September 30, 1997 from $198,000 for the three months ended September 30, 1996. The increase was primarily due to an increase in net earnings of $323,000, an increase in the change in other assets of $354,000, an increase in the change in current income taxes payable of $192,000, and a decrease in originations of loans held-for-sale of $121,000, offset by a decrease in the proceeds from the sale of loans held- for-sale of $536,000, and a decrease in the change in accrued expenses and other liabiities of $295,000. Cash flows from investing activities. Net cash used in investing activities was $5.0 million during the three months ended September 30, 1997 compared to $2.3 million provided by investing activities during the same period in 1996. The change was primarily due to an increase in loans receivable of $5.0 million during the three months ended September 30, 1997 from a $2.3 million increase during the same period in 1996. Cash flows from financing activities. Net cash provided by financing activities was $5.0 million for the three months ended September 30, 1997 compared to $6.6 million during the same period in 1996. The decrease in cash flows from financing activities is primarily due to an increase in deposits of $8.4 million. IMPACT OF RECENTLY ISSUED ACCOUNTING STANDARDS - ---------------------------------------------- In February 1997, the Financial Accounting Standards Board issued Statement No. 128, "Earnings Per Share" which revises the calculation and presentation provisions of Accounting Principles Board Opinion 15 and related interpretations. Statement No. 128 is effective for financial statements for both interim and annual periods ending after December 15, 1997. Retroactive application will be required. The Company believes the adoption of Statement No. 128 will not have a significant effect on its reported earnings per share. 11 PART II - OTHER INFORMATION Item 1. Legal Proceedings The holding company and the Bank are not involved in any pending legal proceedings incident to the business of the holding company and the Bank, which involve amounts in the aggregate which management believes are material to the financial condition and results of operation. Item 2. Changes in Securities --------------------- Not applicable. Item 3. Defaults Upon Senior Securities ------------------------------- Not applicable. Item 4. Submission of Matters to a Vote of Security Holders --------------------------------------------------- Not applicable. Item 5. Other Information ----------------- None. Item 6. Exhibits and Reports on Form 8-K -------------------------------- Exhibits 27-Financial Data Schedule 12 SIGNATURES ---------- Pursuant to the requirement 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. CBES Bancorp, Inc. and Subsidiaries ----------------------------------- (Registrant) Date: 11-10-97 ----------------------------------------------- By: /s/ Larry E. Hermreck ----------------------------------------------- Larry E. Hermreck, Chief Executive Officer and Secretary (Duly Authorized Officer) Date: November 10, 1997 ----------------------------------------------- By: /s/ Dennis D. Hartman ----------------------------------------------- Dennis D. Hartman, Controller and Chief Financial Officer (Principal Financial Officer) EX-27 2 FINANCIAL DATA SCHEDULE
9 3-MOS JUN-30-1998 SEP-30-1997 631,689 3,936,161 0 0 998,200 205,196 207,523 96,087,589 511,000 106,635,246 76,580,946 9,750,000 807,791 0 0 0 10,250 18,039,566 106,635,246 2,116,754 13,336 37,876 2,167,966 882,891 1,018,385 1,149,581 79,978 0 157,878 496,118 304,862 0 0 304,862 0.32 0.32 8.74 630,000 0 0 0 436,000 12,581 7,603 511,000 511,000 0 0
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