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 March 31, 2002

Commission file number 0-10972
 

_____First Farmers and Merchants Corporation _
(Exact name of registrant as specified in its charter)

 

 

 PRIVATE 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 March 31, 2002. 2,920,000 shares
 

This filing contains 13 pages.

PART 1 - FINANCIAL INFORMATION

 

 

Item 1. Financial Statements

 

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

FIRST FARMERS AND MERCHANTS CORPORATION AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
 
 
 
 
 
 **March 31,
December 31, 
 
(Dollars in Thousands) (Unaudited)** **2002
 
2001
ASSETS
Cash and due from banks**$**27,382 
$ 
30,648 
Interest-bearing deposits in banks**274 
16 
Federal funds sold**15,878 
-
Total cash and cash equivalents**43,534 
30,664 
Securities
Available for sale (amortized cost $147,195
and $113,550 respectively)**149,730 
117,218 
Held to maturity (fair value $120,401
and $126,244 respectively)**117,532 
123,234 
Total securities**267,262 
240,452 
Loans, net of deferred fees**541,275 
515,178 
Allowance for possible loan losses **(12,271)
(6,707)
Net loans**529,004 
508,471 
Bank premises and equipment, at cost
less allowance for depreciation**13,140 
10,978 
Other assets**34,852 
30,926 
TOTAL ASSETS**$**887,792 
$ 
821,491 
 
 ** ** 
 
 
LIABILITIES
Deposits
Noninterest-bearing**$**108,285 
$ 
111,432 
Interest-bearing (including certificates of deposit
over $100,000: 2002 - $97,616; 2001 - $98,272)**680,797 
610,084 
Total deposits**789,082 
721,516 
Federal funds purchased and securities sold
under agreements to repurchase**1,837 
1,802 
Dividends payable**-
1,518 
Other short term liabilities**701 
708 
Accounts payable and accrued liabilities**6,939 
6,159 
TOTAL LIABILITIES**798,559 
731,703 
 
 ** ** 
 
 
STOCKHOLDERS'
Common stock - $10 par value, 8,000,000 shares
EQUITY
authorized; issued and outstanding -
2,920,000**29,200 
29,200 
Additional paid-in capital**4,320 
4,320 
Retained earnings **54,040 
53,995 
Accumulated other comprehensive income**1,673 
2,273 
TOTAL STOCKHOLDERS' EQUITY**89,233 
89,788 
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY**$**887,792 
$ 
821,491 
 
 ** ** 
 
 

 

FIRST FARMERS AND MERCHANTS CORPORATION AND SUBSIDIARY 
CONSOLIDATED STATEMENTS OF INCOME 
 
 
 
 
 
 
(Dollars In Thousands Except Per Share Data) (Unaudited)
 
Three Months Ended March 31, ** **2002
 
2001
INTEREST INCOME
Interest and fees on loans**$ **9,389 
$ 
8,451 
Income on investment securities
Taxable interest**2,427 
2,369 
Exempt from federal income tax**860 
823 
Dividends**31 
55 **3,318 
3,247 
Other interest income**81 
198 
TOTAL INTEREST INCOME**12,788 
11,896 
 
 ** ** 
 
 
INTEREST EXPENSE 
Interest on deposits**4,618 
5,663 
Interest on other short term borrowings**9 
30 
TOTAL INTEREST EXPENSE**4,627 
5,693 
NET INTEREST INCOME**8,161 
6,203 
PROVISION FOR POSSIBLE LOAN LOSSES**5,300 
255 
NET INTEREST INCOME AFTER
PROVISION FOR LOAN LOSSES**2,861 
5,948 
 
 ** ** 
 
 
NONINTEREST INCOME
Trust department income**500 
438 
Service fees on deposit accounts**1,647 
1,669 
Other service fees, commissions, and fees**137 
107 
Other operating income**223 
206 
TOTAL NONINTEREST INCOME**2,507 
2,420 
 
 ** ** 
 
 
NONINTEREST EXPENSES
Salaries and employee benefits**3,017 
2,545 
Net occupancy expense**580 
356 
Furniture and equipment expense**285 
183 
Other operating expenses**2,094 
1,871 
TOTAL NONINTEREST EXPENSES**5,976 
4,955 
INCOME BEFORE PROVISION FOR
INCOME TAXES**(608)
3,413 
PROVISION FOR INCOME TAXES**(653)
980 
 
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