SECURITIES AND EXCHANGE COMMISSION

Washington, D. C. 20549

 

FORM 10-Q

 

Quarterly Report Pursuant to Section 13 or 15(d) of

the Securities Exchange Act of 1934

For the quarter ended September 30, 2003

Commission file number 0-10972
  
First Farmers and Merchants Corporation
(Exact name of registrant as specified in its charter)   
Tennessee
62-1148660
(State or other jurisdiction of incorporation or organization)
(I.R.S. Employer Identification No.)  
816 South Garden Street 
Columbia, Tennessee
38402 - 1148__
(Address of principal executive offices)
(Zip Code)   
(931) 388-3145
(Registrant's telephone number, including area code)   

(Former name, former address and former 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 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 common stock, as of September 30, 2003.    2,920,000  shares
 

This filing contains   17   pages.

 

 

 

Item 1. Financial Statements

 

The following unaudited consolidated financial statements of the registrant and its subsidiary for the nine months ended September 30, 2003, are as follows: 
Consolidated balance sheets - September 30, 2003, and December 31, 2002. 
Consolidated statements of income - For the three months and nine months ended September 30, 2003, and September 30, 2002. 
Consolidated statements of cash flows - For the nine months ended September 30, 2003, and September 30, 2002. 
Selected notes to consolidated financial statements. 

 

 

 
**FIRST FARMERS AND MERCHANTS CORPORATION AND SUBSIDIARY**CONSOLIDATED BALANCE SHEETS**September 30,
December 31,
 
(Dollars in Thousands)        (Unaudited)
 **2003
 
2002
ASSETS
Cash and due from banks
$**53,477 
 $ 
            37,161 
Interest-bearing deposits in banks**297 
                 289 
Federal funds sold**12,392 
            14,251 
              Total cash and cash equivalents**66,166 
            51,701 
Securities
    Available for sale (amortized cost $230,808
         and $197,402 respectively)**239,257 
          207,666 
    Held to maturity (fair value $86,088
         and $108,087 respectively)**80,904 
          102,517 
              Total securities**320,161 
          310,183 
Loans, net of deferred fees**435,807 
          500,516 
    Allowance for possible loan losses **(11,001)
          (11,375)
              Net loans**424,806 
          489,141 
Bank premises and equipment, at cost
         less allowance for depreciation**12,793 
            13,051 
Other assets**33,928 
            34,820 
 
            TOTAL ASSETS
$**857,854 
 $ 
          898,896 
LIABILITIES
Deposits
     Noninterest-bearing
$**129,233 
 $ 
          115,578 
     Interest-bearing (including certificates of deposit
          over $100,000:  2003 - $72,716; 2002 -91,783)**616,739 
          673,609 
            Total deposits**745,972 
          789,187 
Federal funds purchased and securities sold
           under agreements to repurchase**2,191 
              1,986 
Dividends payable**-
              1,577 
Other short term liabilities**656 
                 679 
Accounts payable and accrued liabilities**5,802 
              5,785 
 
            TOTAL LIABILITIES
 **754,621 
 
          799,214 
STOCKHOLDERS'
Common stock - $10 par value, 8,000,000 shares
EQUITY
        authorized;  issued and outstanding -
        2,920,000**29,200 
            29,200 
Additional paid-in capital**4,320 
              4,320 
Retained earnings **64,137 
            59,389 
Accumulated other comprehensive income**5,576 
              6,773 
            TOTAL STOCKHOLDERS' EQUITY**103,233 
            99,682 
            TOTAL LIABILITIES AND
 
                STOCKHOLDERS' EQUITY
$**857,854 
 $ 
          898,896 

 

 

**FIRST FARMERS AND MERCHANTS CORPORATION AND SUBSIDIARY**CONSOLIDATED STATEMENTS OF INCOME
(Dollars In Thousands Except Per Share Data)
Three Months Ended 
Nine Months Ended 
 
(Unaudited)
 
September 30,
 
September 30,**2003
2002**2003
2002
INTEREST INCOME
Interest and fees on loans
$**7,054 
 $ 
     9,323 
 $ **22,080 
 $ 
   28,341 
Income on investment securities
     Taxable interest**2,643 
     2,983 **8,286 
     8,414 
     Exempt from federal income tax**644 
        773 **2,106 
     2,448 
     Dividends**27 
          30 **102 
        132 **3,314 
     3,786 **10,494 
   10,994 
Other interest income**56 
          89 **185 
        230 
 
    TOTAL INTEREST INCOME
 **10,424 
 
   13,198 
 **32,759 
 
   39,565 
INTEREST EXPENSE 
Interest on deposits**2,670 
     4,528 **8,966 
   13,797 
Interest on other short term borrowings**3 
          10 **18 
          31 
      TOTAL INTEREST EXPENSE**2,673 
     4,538 **8,984 
   13,828 
            NET INTEREST INCOME**7,751 
     8,660 **23,775 
   25,737 
PROVISION FOR POSSIBLE LOAN LOSSES**40 
        400 **800 
     6,050 
      NET INTEREST INCOME AFTER
 
           PROVISION FOR LOAN LOSSES
 **7,711 
 
     8,260 
 **22,975 
 
   19,687 
NONINTEREST  INCOME
Trust department income**447 
        424 **1,356 
     1,372 
Service fees on deposit accounts**1,806 
     1,818 **5,394 
     5,283 
Other service fees, commissions, and fees**132 
        128 **362 
        353 
Other operating income**(48)
          24 **101 
        290 
Securities gains**-
-**-
        125 
 
      TOTAL NONINTEREST  INCOME
 **2,337 
 
     2,394 
 **7,213 
 
     7,423 
NONINTEREST  EXPENSES
Salaries and employee benefits**3,913 
     3,409 **11,280 
     9,640 
Net occupancy expense**602 
        538 **1,629 
     1,611 
Furniture and equipment expense**************************************************************************************************************************************************************