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, 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 September 30, 2002. 2,920,000 shares
 

This filing contains 17 pages.

PART 1 - FINANCIAL INFORMATION

 

 

Item 1. Financial Statements

 

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

FIRST FARMERS AND MERCHANTS CORPORATION AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
September 30,
December 31,
 
(Dollars in Thousands) (Unaudited)
 
2002
 
2001
ASSETS
Cash and due from banks
$**30,632 
$ 
30,648 
Interest-bearing deposits in banks**289 
16 
Federal funds sold**11,351 
-
Total cash and cash equivalents**42,272 
30,664 
Securities
Available for sale (amortized cost $186,680
And $113,550 respectively)**196,424 
117,218 
Held to maturity (fair value $115,465
And $126,244 respectively)**108,685 
123,234 
Total securities**305,109 
240,452 
Loans, net of deferred fees**522,696 
515,178 
Allowance for possible loan losses **(11,981)
(6,707)
Net loans**510,715 
508,471 
Bank premises and equipment, at cost
Less allowance for depreciation**13,282 
10,978 
Other assets**35,534 
30,926 
 
TOTAL ASSETS
$**906,912 
$ 
821,491 
LIABILITIES
Deposits
Noninterest-bearing
$**107,774 
$ 
111,432 
Interest-bearing (including certificates of deposit
Over $100,000: 2002 - $94,677; 2001 - $98,272)**689,449 
610,084 
Total deposits**797,223 
721,516 
Federal funds purchased and securities sold
Under agreements to repurchase**3,773 
1,802 
Dividends payable**- 
1,518 
Other short term liabilities**686 
708 
Accounts payable and accrued liabilities**6,504 
6,159 
 
TOTAL LIABILITIES
 **808,186 
 
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 **58,774 
53,995 
Accumulated other comprehensive income**6,432 
2,273 
TOTAL STOCKHOLDERS' EQUITY**98,726 
89,788 
TOTAL LIABILITIES AND
 
STOCKHOLDERS' EQUITY
$**906,912 
$ 
821,491 

 

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,
 
 
 
2002
 
2001
 
2002
 
2001
INTEREST INCOME
Interest and fees on loans
$**9,323 
$ 
10,570 
$ **28,341 
$ 
28,961 
Income on investment securities
Taxable interest**2,983 
2,680 **8,415 
7,721 
Exempt from federal income tax**773 
897 **2,447 
2,536 
Dividends**30 
55 **132 
255 **3,786 
3,632 **10,994 
10,512 
Other interest income**89 
63 **230 
314 
 
TOTAL INTEREST INCOME
 **13,198 
 
14,265 
 **39,565 
 
39,787 
INTEREST EXPENSE 
Interest on deposits**4,528 
6,423 **13,797 
18,461 
Interest on other short term borrowings**10 
39 **31 
127 
TOTAL INTEREST EXPENSE**4,538 
6,462 **13,828 
18,588 
NET INTEREST INCOME**8,660 
7,803 **25,737 
21,199 
PROVISION FOR POSSIBLE LOAN LOSSES**400 
300 **6,050 
855 
NET INTEREST INCOME AFTER
 
PROVISION FOR LOAN LOSSES
 **8,260 
 
7,503 
 **19,687 
 
20,344 
NONINTEREST INCOME
Trust department income**424 
517 **1,372 
1,409 
Service fees on deposit accounts**1,818 
1,734 **5,283 
5,103 
Other service fees, commissions, and fees**128 
195 **353 
403 
Other operating income**24 
133 **290 
627 
Securities gains**-
-**125 
-
 
TOTAL NONINTEREST INCOME
 **2,394 
 
2,579 
 **7,423 
 
7,542 
NONINTEREST EXPENSES
Salaries and employee benefits**3,409 
3,038 ****************************************************************************************************************************************