AMERICAN BANCORP INC/LA - 10-Q Quarterly Report

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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 March 31, 2003

Commission File Number 0-11928

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

LOUISIANA 72-0951347
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(State or other jurisdiction of (I R S Employer I. D. Number)
incorporation or organization)

321 EAST LANDRY STREET, OPELOUSAS, LA 70570
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(Address of principal executive office) (Zip Code)

(337) 948-3056
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(Registrant's telephone number, including area code)

NOT APPLICABLE
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(Former name, address, fiscal year, if changed since last report)

Indicate by check mark whether the registrant: (1) has filed all reports
required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter periods that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. YES X NO
--- ---

APPLICABLE ONLY TO CORPORATE ISSUERS:

Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practical date.

Common stock, $5 Par Value----115,992 shares as of April 30, 2003

AMERICAN BANCORP, INC.
(PARENT COMPANY ONLY)
BALANCE SHEETS
(In Thousands)

See Notes to Consolidated Financial Statements.

AMERICAN BANCORP, INC.
CONSOLIDATED BALANCE SHEETS
(In Thousands)

See Notes to Consolidated Financial Statements.

AMERICAN BANCORP, INC.
(PARENT COMPANY ONLY)
STATEMENTS OF INCOME
(Unaudited)
(In Thousands)

See Notes to Consolidated Financial Statements.

AMERICAN BANCORP, INC.
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(In Thousands Except for Per Share Data)

See Notes to Consolidated Financial Statements

AMERICAN BANCORP, INC.
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
For the Three Month Periods Ended March 31, 2003 & 2002
(Unaudited)
(In Thousands)

See Notes to Consolidated Financial Statements

AMERICAN BANCORP, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(In Thousands)

See Notes to Consolidated Financial Statements

AMERICAN BANCORP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
March 31, 2003

NOTE 1 - A BASIS OF PRESENTATION

The accompanying unaudited consolidated financial statements
have been prepared in accordance with generally accepted principles of
accounting for instructions to Form 10-Q and Article 10 of Regulations
S-X. Accordingly, they do not include all of the information and
footnotes required by generally accepted accounting principles for
complete financial statements. In the opinion of management, all
adjustments ( consisting of normal recurring accruals ) considered
necessary for a fair presentation have been included. Operating results
for the three month period ended March 31, 2003 are not necessarily
indicative of the results that may be expected for the year ended
December 31, 2003.

The balance sheet at December 31, 2002 has been derived from
the audited financial statements at that date, but does not include all
of the information and footnotes required by generally accepted
accounting principles for complete financial statements.

For further information, refer to the consolidated financial
statements and footnotes thereto included in American Bancorp, Inc.'s
annual report on Form 10-K for the year ended December 31, 2002.

NOTE 2 - IMPAIRED LOANS

In accordance with Statement of Financial Accounting Standards
(SFAS) No. 114, interest payments received on impaired loans are
applied to principal if there is doubt as to the collectibility of the
principal; otherwise, these receipts are recorded as interest income.

As it relates to in-substance foreclosures, SFAS No. 114
requires that a creditor continue to follow loan classification on the
balance sheet unless the creditor receives physical possession of the
collateral. The Company had no in-substance foreclosures in foreclosed
assets to transfer to nonperforming loans and no related reserve for
losses to transfer to the reserve for possible loan losses.

NOTE 3 - RELATED PARTIES

Directors, executive officers, and 10% shareholders and their
related interests had loans outstanding totaling $1,173,000 at March
31, 2003.

NOTE 4- EARNING PER SHARE

The earnings per share computations are based on weighted
average number of shares outstanding during each quarter of 116,079 and
116,519 for the quarters ended March 31, 2003 and 2002, respectively.

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS

Management's Discussion presents a review of the major factors and
trends affecting the performance of the Company and its bank subsidiary and
should be read in conjunction with the accompanying consolidated financial
statements and notes.

OVERVIEW

The Company reported net income of $277,000 for the first three months
of 2003 compared to $327,000 for the same period of 2002. On a per share basis,
the net income was $2.39 for the first three months of 2003 compared to $2.81
for the same period of 2002. The Company recorded a provision for possible loan
losses of $11,000 for the three months ended both March 31, 2003 and 2002. Net
interest income decreased 1.8% to $963,000 for the first three months of 2003
compared to $981,000 for the same period of 2002.

Total assets were $96,339,000 at March 31, 2003, a decrease of
$3,380,000 from December 31, 2002. Loans decreased by $668,000 or 1.7% from
$39,931,000 at December 31, 2002 to $39,263,000 at March 31, 2003. Deposits
decreased by $3,125,000 or 3.7% from $84,778,000 at December 31, 2002 to
$81,653,000 at March 31, 2003.

RESULTS OF OPERATIONS

NET INTEREST INCOME. Net interest income for the three months ended
March 31, 2003 totaled $963,000, an $18,000 decrease from the same period in
2002. The greatest contributing factors to this decrease were decreases in the
yields on loans and investment securities, which were partially offset by
decreases in the interest paid on interest bearing deposits and increases in the
average balances of loans and investment securities. The overall effect of
volume and rate changes on net interest income during the three month period
ended March 31, 2003 was unfavorable.

PROVISION FOR POSSIBLE LOAN LOSSES. The Company recorded provisions for
possible loan losses of $11,000 for the first three months of both 2003 and
2002. As a percentage of outstanding loans, the allowance for possible loan
losses was 1.60% and 1.55% at March 31, 2003 and December 31, 2002,
respectively. The provision is determined by the level of net charge offs, the
size of the loan portfolio, the level of nonperforming loans, anticipated
economic conditions, and review of financial condition of specific customers.

NON-INTEREST INCOME. For the first three months of 2003 non-interest
income decreased $17,000 or 9.2% compared to the same period of 2002.

Other non-interest income decreased by $16,000 or 31.4% compared to the same
period of 2002. Most of this decrease is the result of a decrease in referral
fees on mortgage loans for the first quarter of 2003.

There were no securities gains in the three month periods ended March 31, 2003
and 2002.

NON-INTEREST EXPENSE. For the first three months of 2003 non-interest
expense increased $45,000 or 6.3% compared to the same period in 2002.

Salaries and employee benefits, the largest component of non-interest expense,
increased by $29,000 or 8.1% for the first three months of 2003 as compared to
the same period in 2002. This increase was attributed to an increase in
salaries, the cost of benefits provided to employees and adjustments to accruals
for deferred compensation.

Net occupancy expense also increased by $6,000 or 4.3% for the first three
months of 2003 as compared to the same period in 2002.

INCOME TAXES. The Company recorded provisions for income taxes of
$83,000 for the three month period ended March 31, 2003 as compared to $113,000
for the same period of 2002.

FINANCIAL CONDITION

LOANS. Loans were $39,263,000 at March 31, 2003; down by $668,000 or
1.7% from December 31, 2002.

TABLE I - COMPOSITION OF LOAN PORTFOLIO
(In thousands)

SECURITIES HELD TO MATURITY. Securities held to maturity were
$2,103,000 at March 31, 2003; down by $1,000, or less than 0.1%, from December
31, 2002.

SECURITIES AVAILABLE FOR SALE. Securities available for sale were
$33,556,000 at March 31, 2003; which is down by $4,165,000 or 11.0% from
December 31, 2002.

TABLE II - INVESTMENT SECURITIES
(In thousands)

A comparison of the book values and the estimated market values of investment
securities is as follows:

TABLE III - NONPERFORMING ASSETS

Nonperforming assets include nonaccrual loans, loans which are contractually 90
days or more past due, restructured loans, and foreclosed assets. Restructured
loans are loans which, due to a deteriorated financial condition of the
borrower, have a below market yield. Interest payments received on nonperforming
loans are applied to reduce principal if there is doubt as to the collectibility
of the principal; otherwise, these receipts are recorded as interest income.
Certain nonperforming loans that are current as to principal and interest
payments are classified as nonperforming because there is a question concerning
full collectibility of both principal and interest.

Nonperforming assets totaled $ 3,000 at both March 31, 2003 and December 31,
2002. The composition of nonperforming assets is illustrated below:

TABLE IV - ANALYSIS OF ALLOWANCE FOR LOAN LOSSES
(In thousands)

The present level of the allowance for loan losses is considered adequate to
absorb future potential loan losses. In making this determination, management
considered asset quality, the level of net loan charge-offs, as well as current
economic conditions and market trends.

TABLE V - ALLOCATION OF THE ALLOWANCE FOR LOAN LOSSES
(In thousands)

The allowance for possible loan losses has been allocated according to the
amounts deemed to be reasonably necessary to provide for the possibility of
losses being incurred within the following categories of loans.

DEPOSITS. As of March 31, 2003 total deposits have decreased by
$3,125,000 or 3.7% from December 31, 2002. Non-interest bearing deposits
increased by $1,680,000 or 5.7% from December 31, 2002 to March 31, 2003.
Interest bearing deposits decreased by $4,805,000 or 8.7% from December 31,
2002 to March 31, 2003.

CAPITAL. Shareholders' equity totaled $13,788,000 at March 31, 2003,
compared to $13,632,000 at December 31, 2002. The increase is primarily the
result of net income during the current quarter which was partially offset by an
unrealized reduction in the market value of securities available for sale.
Risk-based capital and leverage ratios for the Company and the bank subsidiary
exceed the ratios required for the designation as a "well-capitalized"
institution under regulatory guidelines.

TABLE VI - CAPITAL RATIOS

PART II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

In the normal course of business, the bank becomes involved in legal
proceedings. It is the opinion of management that the resulting liability, if
any, for pending litigation is negligible.

ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K

(a) Exhibits

99.1 Certification pursuant to 18 U.S.C. Section 1350 by
the Company's Principal Executive Officer

99.2 Certification pursuant to 18 U.S.C. Section 1350 by
the Company's Principal Financial Officer

99.3 Disclosure of approval by the Company's Audit
Committee for the performance of non-audit services
by the Company's Independent Auditors

99.4 Disclosure on controls pursuant to 18 U.S.C. Section
1350 by the Company's Principal Executive Officer

99.5 Disclosure on controls pursuant to 18 U.S.C. Section
1350 by the Company's Principal Financial Officer

(b) Reports on Form 8-K

NONE

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 to sign on behalf of the registrant.

AMERICAN BANCORP, INC.
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(Registrant)

May 9, 2003 /s/ Salvador L. Diesi, Sr.
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DATE Salvador L. Diesi, Sr.
Chairman of the Board and President

May 9, 2003 /s/ Ronald J. Lashute
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DATE Ronald J. Lashute
Secretary and Treasurer of the Board
Chief Executive Officer

CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Ronald J. Lashute, certify that:

1. I have reviewed this quarterly report on Form 10-Q of American Bancorp,
Inc.;

2. Based on my knowledge, this quarterly report does not contain any untrue
statement of a material fact or omit to state a material fact necessary to
make the statements made, in light of the circumstances under which such
statements were made, not misleading with respect to the period covered by
this quarterly report;

3. Based on my knowledge, the financial statements, and other financial
information included in this quarterly report, fairly present in all
material respects the financial condition, results of operations and cash
flows of the registrant as of, and for, the periods presented in this
quarterly report;

4. The registrant's other certifying officers and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined
in Exchange Act Rules 13a-14 and 15d-14) for the registrant and have:

a) designed such disclosure controls and procedures to ensure that
material information relating to the registrant, including its
consolidated subsidiaries, is made known to us by others within those
entities, particularly during the period in which this quarterly
report is being prepared;

b) evaluated the effectiveness of the registrant's disclosure controls
and procedures as of a date within 90 days prior to the filing date of
this quarterly report ("Evaluation Date"); and

c) presented in this quarterly report our conclusions about the
effectiveness of the disclosure controls and procedures based on our
evaluation as of the Evaluation Date;

5. The registrant's other certifying officers and I have disclosed, based on
our most recent evaluation, to the registrant's auditors and the audit
committee of registrant's board of directors (or other persons performing
the equivalent functions) :

a) all significant deficiencies in the design or operation of internal
controls which could adversely affect the registrant's ability to
record, process, summarize and report financial data and have
identified for the registrant's auditors any material weakness in
internal controls; and

b) any fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant's internal
controls; and

6. The registrant's other certifying officers and I have indicated in this
quarterly report whether there were significant changes in internal
controls or in other factors that could significantly affect internal
controls subsequent to the date of our most recent evaluation, including
any corrective actions with regard to significant deficiencies and material
weaknesses.

May 9, 2003 /s/ Ronald J. Lashute
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DATE Ronald J. Lashute
Chief Executive Officer

CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, George Hill Comeau, certify that:

1. I have reviewed this quarterly report on Form 10-Q of American Bancorp,
Inc.;

2. Based on my knowledge, this quarterly report does not contain any untrue
statement of a material fact or omit to state a material fact necessary to
make the statements made, in light of the circumstances under which such
statements were made, not misleading with respect to the period covered by
this quarterly report;

3. Based on my knowledge, the financial statements, and other financial
information included in this quarterly report, fairly present in all
material respects the financial condition, results of operations and cash
flows of the registrant as of, and for, the periods presented in this
quarterly report;

4. The registrant's other certifying officers and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined
in Exchange Act Rules 13a-14 and 15d-14) for the registrant and have:

a) designed such disclosure controls and procedures to ensure that
material information relating to the registrant, including its
consolidated subsidiaries, is made known to us by others within those
entities, particularly during the period in which this quarterly
report is being prepared;

b) evaluated the effectiveness of the registrant's disclosure controls
and procedures as of a date within 90 days prior to the filing date of
this quarterly report ("Evaluation Date"); and

c) presented in this quarterly report our conclusions about the
effectiveness of the disclosure controls and procedures based on our
evaluation as of the Evaluation Date;

5. The registrant's other certifying officers and I have disclosed, based on
our most recent evaluation, to the registrant's auditors and the audit
committee of registrant's board of directors (or other persons performing
the equivalent functions) :

a) all significant deficiencies in the design or operation of internal
controls which could adversely affect the registrant's ability to
record, process, summarize and report financial data and have
identified for the registrant's auditors any material weakness in
internal controls; and

b) any fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant's internal
controls; and

6. The registrant's other certifying officers and I have indicated in this
quarterly report whether there were significant changes in internal
controls or in other factors that could significantly affect internal
controls subsequent to the date of our most recent evaluation, including
any corrective actions with regard to significant deficiencies and material
weaknesses.

May 9, 2003 /s/ George Hill Comeau
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DATE George Hill Comeau
Chief Financial Officer

INDEX TO EXHIBITS