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 June 30, 2002

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 June 30, 2002.    2,920,000  shares
 

This filing contains   14   pages.

PART 1 - FINANCIAL INFORMATION

 

 

Item 1. Financial Statements

 

The following unaudited consolidated financial statements of the registrant and its subsidiary for the six months ended June 30, 2002, are as follows: 
Consolidated balance sheets - June 30, 2002, and December 31, 2001. 
Consolidated statements of income - For the three months and six months ended June 30, 2002, and June 30, 2001. 
Consolidated statements of cash flows - For the six months ended June 30, 2002, and June 30, 2001. 
Selected notes to consolidated financial statements.

FIRST FARMERS AND MERCHANTS CORPORATION AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS**June 30,
December 31,
 
(Dollars in Thousands)        (Unaudited)
 **2002
 
2001
ASSETS
Cash and due from banks
$**26,770
$
30,648
Interest-bearing deposits in banks**289
16
Federal funds sold**3,611
-
              Total cash and cash equivalents**30,670
30,664
Securities
    Available for sale (amortized cost $167,433
         and $113,550 respectively)**173,504
117,218
    Held to maturity (fair value $115,666
         and $126,244 respectively)**110,945
123,234
              Total securities**284,449
240,452
Loans, net of deferred fees**536,557
515,178
    Allowance for possible loan losses **(12,292)
(6,707)
              Net loans**524,265
508,471
Bank premises and equipment, at cost
         less allowance for depreciation**12,991
10,978
Other assets**37,240
30,926
 
            TOTAL ASSETS
$**889,615
$
821,491
LIABILITIES
Deposits
     Noninterest-bearing
$**100,809
$
111,432
     Interest-bearing (including certificates of deposit
          over $100,000:  2002 - $100,179; 2001 - $98,272)**680,296
610,084
            Total deposits**781,105
721,516
Federal funds purchased and securities sold
           under agreements to repurchase**6,951
1,802
Dividends payable**1,548
1,518
Other short term liabilities**694
708
Accounts payable and accrued liabilities**5,937
6,159
 
            TOTAL LIABILITIES
 **796,235
731,703
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 **55,854
53,995
Accumulated other comprehensive income**4,006
2,273
            TOTAL STOCKHOLDERS' EQUITY**93,380
89,788
            TOTAL LIABILITIES AND
 
                STOCKHOLDERS' EQUITY
$**889,615
$
821,491
 

FIRST FARMERS AND MERCHANTS CORPORATION AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME
(Dollars In Thousands Except Per Share Data)
Three Months Ended 
Six Months Ended 
(Unaudited)
June 30,
June 30,**2002
2001**2002
2001
INTEREST INCOME
Interest and fees on loans
$**9,629
$
9,940
$**19,018
$
18,391
Income on investment securities
     Taxable interest**3,005
2,672**5,432
5,041
     Exempt from federal income tax**814
816**1674
1639
     Dividends**71
145**102
200**3,890
3,633**7,208
6,880
Other interest income**60
53**141
251
 
    TOTAL INTEREST INCOME
 **13,579
 
13,626
 **26,367
 
25,522
INTEREST EXPENSE 
Interest on deposits**4,651
6,375**9,269
12,038
Interest on other short term borrowings**12
58**21
88
      TOTAL INTEREST EXPENSE**4,663
6,433**9,290
12,126
            NET INTEREST INCOME**8,916
7,193**17,077
13,396
PROVISION FOR POSSIBLE LOAN LOSSES**350
300**5,650
555
      NET INTEREST INCOME AFTER
 
           PROVISION FOR LOAN LOSSES
 **8,566
 
6,893
 **11,427
 
12,841
NONINTEREST  INCOME
Trust department income**448
454**948
892
Service fees on deposit accounts**1,818
1,700**3,465
3,369
Other service fees, commissions, and fees**88
101**225
208
Other operating income**43
288**266
494
Securities gains**125
  -**125
  -
 
      TOTAL NONINTEREST  INCOME
 **2,522
 
2,543
 **5,029
 
4,963
NONINTEREST  EXPENSES
Salaries and employee benefits**3,214
2,839**6,231
5,384
Net occupancy expense**493
520**1,073
876
Furniture and equipment expense**321
253**606
436
Other operating expenses**********************************************************************************************************************************************************