<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10 - QSB
[ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 1996
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from __________ to __________
Commission File Number : 33 - 302132
----------------------------------------------
TRI - STATE, 1ST BANK, INC.
(Exact Name of small business issuer as specified in its charter)
OHIO 34-1824708
- - ------ ------------
(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification Number)
16924 ST. CLAIR AVENUE
P.O. BOX 796
EAST LIVERPOOL, OHIO 43920
(216) 385 - 9200
- - ---------------------------
(Address, including zip code, and
telephone number, including area
code of Principal Executive Officers)
Check whether the issuer (1) filed all reports required to be filed by Section
13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter
period that the registrant was required to file such reports), and (2) has
been subject to such filing requirement for the past 90 days.
Yes X No
--- ----
As of August 13, 1996, there were 205,400 shares outstanding of the issuer's
class of common stock.
<PAGE>
TRI - STATE, 1ST BANK, INC.
INDEX TO QUARTERLY REPORT ON FORM 10 - QSB
Page
----
Part I Financial Information
Item 1. Financial Statements (unaudited)
Consolidated Balance Sheet
as of June 30, 1996 and December 31, 1995 3
Consolidated Statement of Income
for the three months ended
June 30, 1996 and 1995 and
the months ended June 30, 1996 and 1995 4
Consolidated Statement of Changes in Stockholders'
Equity for the six months ended
June 30, 1996 5
Consolidated Statement of Cash Flows
for the six months ended June 30, 1996 and 1995 6
Notes to Consolidated Financial Statements 7
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 8
Part II Other Information 12
Signatures 14
<PAGE>
Tri - State 1st Bank, Inc. and Subsidiary
CONSOLIDATED BALANCE SHEET
(Unaudited)
<TABLE>
<CAPTION>
June 30, December 31,
1996 1995
--------- -----------
(In Thousands)
<S> <C> <C>
ASSETS
Cash and due from banks $ 3,221 $ 2,440
Interest - bearing deposits with other banks 57 117
Federal funds sold 2,950 1,550
Securities available for sale 9,011 8,941
Investment securities (estimated market value of
$2,184) 2,231 1,535
Loans 22,697 22,117
Less allowance for loan losses 275 266
--------- ---------
Net loans 22,422 21,851
Premises and equipment 1,264 1,288
Accrued interest and other assets 705 914
---------- ----------
TOTAL ASSETS $ 41,861 $ 38,636
========== ==========
LIABILITIES
Deposits:
Noninterest - bearing demand $ 5,353 $ 5,020
Interest - bearing demand 8,075 6,709
Money market 4,686 4,365
Savings 7,736 7,076
Time 11,671 11,188
---------- ----------
Total deposits 37,521 34,358
Other borrowings 328 375
Accrued interest and other liabilities 242 217
---------- ----------
TOTAL LIABILITIES 38,091 34,950
---------- ----------
STOCKHOLDERS' EQUITY
Common stock, no par value; 1,000,000
shares authorized, 205,400 issued and
outstanding 1,284 1,284
Surplus 1,611 1,611
Retained earnings 988 793
Net unrealized loss on securities (113) (2)
---------- ----------
TOTAL STOCKHOLDERS' EQUITY 3,770 3,686
---------- ----------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $ 41,861 $ 38,636
========== ==========
See accompanying notes to the consolidated financial statements.
</TABLE>
<PAGE>
Tri - State 1st Bank, Inc. and Subsidiary
CONSOLIDATED STATEMENT OF INCOME
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
June 30, June 30,
1996 1995 1996 1995
----- ----- ----- -----
(In Thousands Except Per Share Amounts)
<S> <C> <C> <C> <C>
INTEREST INCOME
Loans, including fees $ 567 $ 511 $ 1,124 $ 990
Interest - bearing deposits
with other banks 1 2 2 2
Federal funds sold 43 18 64 44
Investment securities:
Taxable 115 107 220 221
Exempt from federal income tax 41 28 78 56
-------- -------- -------- --------
Total interest income 767 666 1,488 1,313
-------- -------- -------- --------
INTEREST EXPENSE
Deposits 299 244 582 470
Other borrowings 6 7 12 15
-------- -------- -------- --------
Total interest expense 305 251 594 485
-------- -------- -------- --------
NET INTEREST INCOME 462 415 894 828
Provision for loan losses 15 19 24 31
-------- -------- -------- --------
NET INTEREST INCOME AFTER PROVISION
FOR LOAN LOSSES 447 396 870 797
-------- -------- -------- --------
OTHER OPERATING INCOME
Service fees on deposit accounts 61 56 118 103
Investment security losses - (6) - (6)
Other 46 19 68 51
-------- -------- -------- --------
Total other
operating income 107 69 186 148
-------- -------- -------- --------
OTHER OPERATING EXPENSE
Salaries and employee benefits 155 137 309 274
Occupancy 46 27 89 65
Furniture and equipment 32 33 64 62
Federal deposit insurance premiums 1 18 1 35
Other 138 105 254 222
-------- -------- -------- --------
Total other operating
expense 372 320 717 658
-------- -------- -------- --------
Income before income taxes 182 145 339 287
Income taxes 51 39 93 75
-------- -------- -------- --------
NET INCOME $ 131 $ 106 $ 246 $ 212
======== ======== ======== ========
EARNINGS PER SHARE $ 0.64 $ 0.52 $ 1.20 $ 1.03
AVERAGE SHARES OUTSTANDING 205,400 205,400 205,400 205,400
See the accompanying notes to the consolidated financial statements.
</TABLE>
<PAGE>
Tri - State 1st Bank, Inc. and Subsidiary
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
(Unaudited)
<TABLE>
<CAPTION>
Net
Unrealized
Common Retained Loss on
Stock Surplus Earnings Securities Total
-------- ------- -------- ----------- -------
(In Thousands Except Per Share Amount)
<S> <C> <C> <C> <C> <C>
Balance, December 31, 1995 $ 1,284 $ 1,611 $ 793 $ (2) $ 3,686
Net income 246 246
Dividends declared ($.25 per share) (51) (51)
Net unrealized loss on
securities (111) (111)
------- ------- ----- -------- -------
Balance, June 30, 1996 $ 1,284 $ 1,611 $ 988 $ (113) $ 3,770
======= ======= ===== ======== =======
See accompanying notes to the consolidated financial statements.
</TABLE>
<PAGE>
Tri - State 1st Bank, Inc. and Subsidiary
CONSOLIDATED STATEMENT OF CASH FLOWS
(Unaudited)
Six Months Ended
June 30,
1996 1995
----- -----
(In Thousands)
OPERATING ACTIVITIES
Net income $ 246 $ 212
Adjustments to reconcile net income
to net cash provided by operating
activities:
Provision for loan losses 24 31
Depreciation and amortization, net 63 62
Investment security losses - 6
Decrease in accrued interest receivable - (29)
Increase in accrued interest payable 3 9
Other 260 41
-------- --------
Net cash provided by operating activities 596 332
-------- --------
INVESTING ACTIVITIES
Securities available for sale:
Proceeds from sales 257 500
Proceeds from principal repayments and maturities 159 355
Purchases of securities (650) (510)
Investment securities:
Proceeds from principal repayments and maturities 108 127
Purchases of securities (809) (103)
Net loan originations (630) (1,857)
Acquisition of premises and equipment (26) (50)
-------- --------
Net cash used by investing activities (1,591) (1,538)
-------- --------
FINANCING ACTIVITIES
Net increase in deposits 3,163 499
Principal payments on other borrowings (47) (44)
-------- --------
Net cash provided by financing activities 3,116 455
-------- --------
Increase (decrease) in cash and cash equivalents 2,121 (751)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 4,107 4,420
-------- --------
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 6,228 $ 3,669
======== ========
See accompanying notes to the consolidated financial statements.
<PAGE>
Tri - State 1st Bank, Inc. and Subsidiary
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
NOTE 1 - BASIS OF PRESENTATION
The accompanying unaudited consolidated financial statements have been
prepared in accordance with instructions to Form 10 - QSB and, therefore, do
not necessarily include all information which would be included in audited
financial statements. The information furnished reflects all normal recurring
adjustments which are, in the opinion of management, necessary for the fair
statement of the results of the period. The results of operations for the
interim periods are not necessarily indicative of the results to be expected
for the full year.
NOTE 2 - RECLASSIFICATION OF COMPARATIVE AMOUNTS
Certain comparative amounts for 1996 have been reclassified to conform to 1995
presentations. Such reclassifications did not affect net income.
NOTE 3 - HOLDING COMPANY FORMATION
On April 24, 1996, the stockholders of the Bank approved the Plan of
Reorganization of the Bank into a holding company structure. After approval
by the regulatory authorities the reorganization was completed on May 31,
1996. Each issued and outstanding share of common stock of the Bank
immediately prior to the reorganization was converted into and exchanged for
one share of Tri - State 1st Bank, Inc., common stock. As a result of this
transaction, 1st National Community Bank became a wholly - owned subsidiary of
Tri - State 1st Bank, Inc. The effect of the reorganization has been
retroactively reflected in the equity capital accounts for comparability.
<PAGE>
Tri - State 1st Bank, Inc. and Subsidiary
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
FINANCIAL CONDITION
Total assets at June 30, 1996 of $41,861,000, had increased approximately
$3,225,000 over the $38,636,000 reported as of December 31, 1995. This is an
8.35% increase for the six month period. Over that same period, Total
Securities increased to $11,242,000 from $10,476,000, which represents a
$766,000 or 7.31% increase. Included in Total Securities, the Securities
Available for Sale increased by $70,000 or .78% to $9,011,000 on June 30,
1996, and Investment Securities had increased by $696,000 or 45.34% to
$2,231,000. Net loans of $22,422,000 on June 30, 1996, reflect an increase of
$571,000 or 2.61% during the six month period.
The Total Assets increased more rapidly than the demand for loans deemed to
meet the credit standards of the Bank. The net increase in loans accounted
for 17.71% of the $3.2 million asset growth. Additions to securities
represented 23.75% of the asset growth, while a $1,400,000 increase in Federal
Funds Sold represented 43.41%. The remaining 15.13% increase in Total Assets
was the net effect of changes in other components of Total Assets.
The growth in loans resulted from a small decline in the residential real
estate loans of $162,000 or 1.52% which was compensated for by increases in
commercial loans and non - farm, non - residential secured real estate loans
of $726,000 or 9.80%, and increased consumer installment loans of $193,000 or
5.37%. The decline in residential real estate loans was the result of normal
repayments without offsetting loan growth. Management has concentrated its
efforts over the past year on attracting commercial and consumer loans since
they generally provide a higher interest rate yield to the Bank as well as
achieving a more balanced loan mix. Residential real estate loans of
$10,529,000 on June 30, 1996, represented 46.15% of the Total Loans of the
Bank.
The increase in the Total Securities is part of an investment strategy of
management to make additions to the securities portfolio periodically in order
to employ funds not required for loans in a manner which will provide safety,
liquidity and earnings to the Bank. $607,000 was added in the area of
Securities issued by States and Political Subdivisions. While the effect of
these purchases was to extend the average maturity of the security portfolio
it also resulted in an increase in the tax equivalent yield on Bank
securities. The additional securities were designated Held to Maturity since
they are intended primarily to add to the safety and improved earnings of the
Bank.
The increase in Federal Funds Sold represented most of the remainder of the
increase in Assets. Federal Funds are used to meet the daily cash liquidity
needs of the Bank. The amount placed in these funds fluctuates generally
between $1 million and $4 million. These funds are loaned on a daily basis to
other commercial banks which meet the capital requirements of the regulatory
authorities and of the Bank.
Accrued Interest and Other Assets decreased over the six month period by
$209,000 to a total of $705,000 on June 30, 1996. There was a decrease
because of principal and interest outstanding on a matured U.S. Treasury bond
on the books on December 31, 1995. This decrease was partially offset by
several items including a small increase in deferred tax assets resulting from
the recognition of the tax effect of an increase in net unrealized losses on
Available for Sale securities. The capitalization of the organization costs
associated with the formation of the holding company of $33,000 also lessened
the impact of the decrease resulting from the Treasury Bond maturity.
There was an increase in Total Deposits in the amount of $3,163,000 or 9.21%
to $37,521,000 on June 30, 1996. Deposits totalled $34,358,000 on December
31, 1995. This increase is above - average growth for a six month period.
The growth took place generally in all types of deposits as follows:
Noninterest - Bearing Demand was up 6.63%, Interest - Bearing Demand up
20.36%, Money Market up 7.35%, Savings up 9.33% and Time Deposits were up
4.32%. Although the increase occurred at all three offices, the increase was
the greatest porportionately at the Lisbon office. This is the newest banking
office and is in a new market to the Bank. The Bank offered no new deposit
products or services which would account for this growth, nor did the Bank pay
excessive rates of interest in relation to its competition in order to attract
new deposits. The Bank offers extended hours at all offices and high -
quality, personal service. This has over the past nine years resulted in an
above average rate of growth of deposits compared to peers and competitors.
<PAGE>
Stockholders' Equity increased $84,000 or 2.28% from December 31, 1995, to
$3,770,000 on June 30, 1996. During the same period, Retained Earnings
increased $195,000 or 24.59% to $988,000. The difference can be attributed to
Net Unrealized Loss on Securities of $113,000, which was $111,000 greater than
December 31, 1995. The decline in value in the securities is the result of
bond market conditions which triggered higher interest rates than in December
of 1995. Since the Bank has no trading account in its portfolio and generally
holds its securities until maturity, it is not anticipated that the Bank will
need to take these "paper losses" on securities in the portfolio.
RESULTS OF OPERATIONS
Comparison of the Six Months Ended June 30, 1996 to 1995
- - --------------------------------------------------------
The Company had Net Income of $246,000 for the period ended June 30, 1996.
For the same six month period of 1995, the Bank earned $212,000. The increase
of $34,000 represents a 16.04% change over 1995.
The Net Interest Income for the first six months of 1996 was up $66,000 for an
increase of 7.97%. A major factor contributing to this increase was the
$134,000 or 13.54% increase in interest and fees on loans. The increase in
total loans and the more favorable mix of loans in terms of yields are
primarily responsible for the increase in loan income. Federal Funds Sold
interest was up $20,000 or 45.45% as a result of more investible funds and
higher interest rates. Interest income on securities exempt from federal
income taxes was up $22,000 or 39.29% as a result of additional tax exempt
investments. The $112,000 or 23.83% increase in interest expense on deposits
resulted from the dramatic growth of deposits as well as the generally higher
rates paid for certificates of deposit. The rising interest rates paid were
the product of a rising market, and not more aggressive pricing.
Based upon management's continuing evaluation of the loan portfolio, the
provision for loan losses has increased $24,000 in 1996. This addition was
made to maintain the allowance for loan losses at an appropriate level. On
June 30, 1996, the Allowance for Loan Losses represented 1.21% of the
outstanding loan balances.
Other Operating Income increased by $38,000 to $186,000 for 1996. This was a
25.68% increase over 1995. Service fees on deposits accounted for $15,000 of
this amount and Other Income, including ATM fees and customer charges for
checks and merchants credit cards were responsible for $17,000 of the
increase. There were no security losses in 1996, as compared with a $6,000
loss in the 1995 period. Most of the relative gain in Other Operating Income
occurred in the second quarter.
Salaries of employees and benefits increased $35,000 or 12.77%. In order to
meet increased volumes of business, additions to the staff in loans, data
processing and customer service were made over the past twelve months. The
salary rate has increased approximately 5%.
Occupancy Expense is up $24,000 or 36.92% for the six month period.
Maintenance and repairs increased $3,500 and Building Lease expense was $5,300
greater in 1996 due to increases in rent at the Calcutta office and the
commencing of rental payment on the ATM/CBCT branch in Summit Plaza. The
balance of Occupancy increases were the result of normal rises in costs.
Federal Deposit Insurance premiums declined $34,000 while Other Expenses rose
$32,000 or 14.41%. Other Expenses include supplies, audit expenses, postage,
correspondent fees, collection expenses, and Ohio Franchise Tax. $6,600 was
spent for a new debit card program to be introduced in August.
Income tax expense was $93,000 for the first six months of 1996, which was an
24.00% or $18,000 increase over 1995. This represents tax on additional
earnings of the Company and a slight increase in the tax rate paid by the Bank
to 27.43% from 26.13%.
<PAGE>
Comparison of the Three Months Ended June 30, 1996 to 1995
- - ----------------------------------------------------------
The Company had Net Income of $131,000 for the three months ended June 30,
1996. Compared to the same period of 1995 when Net Income was $106,000, this
marked a $25,000 or 23.58% increase. The Net Interest Income at $462,000 was
up 11.33% over the year before. There was a $101,000 or 15.17% rise in
Interest Income compared with a $54,000 or 21.51% increase in Interest
Expense. Interest on Loans and Loan Fees of $567,000 was up $56,000 over the
same period of 1995, which was an increase of 10.96%. The increase in the
rate of growth of loans had slowed somewhat in the second quarter, but
increases in the rate of interest paid on deposits also leveled off as the
interest market stabilized. Other components of Interest Income making a
significant impact were Federal Funds Sold income of $43,000 which was a
$25,000 or a 138.89% increase over the second quarter of 1995. Note that
deposits were growing more rapidly than loans. A $13,000 increase in
Investment Income Exempt from Federal Income Taxes was a 46.43% increase so
this impacted interest income most in the second quarter.
Interest Expense on Deposits was $299,000 for an increase over the second
quarter of 1995 of $55,000 or 22.54%. The rate of increase in Interest
Expense was down slightly from the first quarter. The amount of improvement
in the interest margins for the second quarter at 11.33% was better than the
first two quarters combined when the change was 7.97%. The relative gains in
the Federal Funds Sold income and the reduction in Interest Expense on
Deposits are primarily responsible for this improvement in the interest
margin.
In order to maintain the allowance for loan losses at an appropriate level,
and after careful evaluation by management of the composition of the loan
portfolio, $15,000 was allotted as the provision for loan losses. This was a
$4,000 decrease from the amount provided in the second quarter of 1995.
Other Operating Income increased by $38,000 to $107,000 in 1996 over the prior
period. This is the same amount of increase as that of the entire first six
months. An insurance commission check in the amount of $13,200 which is paid
only annually and the amount of which depended upon 1995 sales and loss
experience was received in the second quarter. This check combined with the
relative improvement in service fees for drafts, checks, ATMs, and merchant
cards resulted in this improvement.
Salaries and Employee Benefits in the second quarter of 1996 were $18,000 or
13.14% above the same period in 1995. There was a $25,000 increase in
Officers' salaries included in this total. The addition of a new loan
officer, and the promotion of an employee to officer status constituted most
of this change. The slight change in the percent of increase in the second
quarter over the six month period was because of employment of summer part-time
help.
In the second quarter of 1996, Occupancy Expense was up $19,000 over 1995. A
relatively larger part of the six month increase occurred in the second three
months. Repairs, maintenance and insurance which accounted for $5,000 and
this increase should not recur in the last two quarters of 1996. The $5,000
in lease expense will recur. Federal Deposit Insurance Premiums were down
$17,000 and Other Expenses were up $33,000. The relative increase in Other
Expenses for the entire six months occurred principally in the second quarter
most of which can be accounted for by the VISA Debit Card expense and
increases in collection expenses, audit fees, and postage costs.
Income before Taxes was $182,000 for the second quarter compared with $157,000
for the first quarter. This was $37,000 or 25.52% higher than 1995. Income
Taxes were up $12,000.
<PAGE>
LIQUIDITY AND CASH FLOWS
The liquidity of a banking institution reflects its ability to provide funds
to meet loan requests, to accommodate the possible outflows of deposits and to
take advantage of interest rate market opportunities. It requires continuous
analysis by management in order to match the maturities of short-term loans
and investments with the various types of deposits and borrowings. Bank
liquidity is normally considered in terms of the nature and mix of the Bank's
sources and uses of funds.
The Statement of Cash Flows for the six month period ended June 30, 1996
indicates an increase in Cash and Cash Equivalents from December 31, 1995, of
$2,121,000 to $6,228,000; and an increase from June 30, 1995 of $2,559,000.
Operating Activities and Investing Activities were similar for the two six-
month periods. An increase in deposits and a decrease in Other Borrowings
resulted in a $2.66 million increase in Net Cash provided by Financing
Activities. No cash dividends were paid in either of the six month periods.
Management is not aware of any known trends, events, or uncertainties that
would have a material effect on either the liquidity, capital resources or
operations of the Company. Management is not aware of any current
recommendations by the regulatory authorities which, if implemented, would
have a material effect on the liquidity, capital resources, or operations of
the Company.
RISK ELEMENTS
The following schedule presents the non-performing assets at June 30, 1996,
and December 31, 1995.
June 30, 1996 December 31, 1995
------------- -----------------
(dollars in thousands)
Non-performing loans
Loans past due 90 days
or more $ 269 $ 270
Non-accrual loans 23 48
----- -----
Total non-performing loans 292 318
----- -----
Other non-performing assets
Other real estate owned 135 111
Repossessed assets 0 0
----- -----
Total other non-performing
assets 135 111
----- -----
Total non-performing assets $ 427 $ 479
===== =====
Non-performing loans as a
percentage of total loans 1.28% 1.44%
Non-performing assets as a
percentage of total loans
and other non-performing assets 1.86% 1.93%
<PAGE>
During the six month period ended June 30, 1996, loans increased $580,000
while the allowance for loan losses increased a net $9,000 for the same
period. This net increase in the provision is 1.55% of the amount of the loan
increase. The percentage of allowance for loan losses to loans outstanding
stood at 1.21% on June 30, 1996.
The relationship between the allowance for loan losses and outstanding loans
is a function of the credit quality and known risks attributed to the loan
portfolio. An on-going loan review program and credit approval process is
used to maintain credit quality. Management performs a quarterly evaluation
of the allowance for loan losses which incorporates internal loan review,
actual historical losses, negative economic trends in the local and national
market and other pertinent factors. The evaluation is presented to and
approved by the Board of Directors of the Bank. Management, through the use
of the quarterly evaluation process, believes that the allowance was at an
adequate level as of June 30, 1996.
<PAGE>
PART II. - OTHER INFORMATION
Item 1. Legal Proceedings.
None.
Item 2. Changes in rights of the Company's Security holders.
The process of exchanging shares of stock of 1st National Community
Bank for shares of Tri - State 1st Bank, Inc. on a one - for - one
basis in accordance with the Agreement and Plan of Reorganization
adopted by the shareholders on April 24, 1996, began on May 31,
1996. The par value of the shares of the Bank was $6.25 per share
while the shares of the Holding Company have no par value.
However, the elimination of the par value of shares of the
stockholders should have no material effect upon their rights as
shareholders.
Item 3. Defaults by the Company on its senior securities.
None.
Item 4. Results of votes of security holders.
The following represents the results of matters submitted to a vote
of the shareholders at the annual meeting held on April 24, 1996:
Agreement and Plan of Reorganization:
The shareholders voted to approve and adopt an Agreement and Plan
of Reorganization dated as of March 26, 1996, between 1st National
Community Interim Bank and Tri - State 1st Bank, Inc. and approved
the merger of 1st National Community Bank into the Interim Bank, as
follows:
For 153,446
Against 2,100
Abstain 200
Election of Directors:
The following directors were elected to the Board of Directors and
will serve terms to expire as follows:
William E. Blair 1997
Keith R. Clutter 1998
Stephen W. Cooper 1997
G. Allen Dickey 1998
Marvin H. Feldman 1997
Charles B. Lang 1999
R. Lynn Leggett 1999
John P. Scotford 1998
John C. Thompson 1999
Other:
S.R. Snodgrass, A.C. was elected as the Bank's Independent Auditors
for the 1996 fiscal year.
For 154,146
Against 0
Abstain 1,600
<PAGE>
Item 5. Other Information.
None.
Item 6. Exhibits and Reports on Form 8 - K.
(a) Exhibits.
None.
(b) Reports on Form 8 - K.
None.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of
1934, the Registrant has duly caused this report to be signed on its behalf by
the undersigned thereunto duly authorized.
Tri - State 1st Bank, Inc.
(Registrant)
Date: By: /s/ Charles B. Lang
-------------------------
August 13, 1996 Charles B. Lang
President and Chief Executive Officer
Date: By: /s/ Keith R. Clutter
--------------------------
August 13, 1996 Keith R. Clutter
Secretary
<TABLE> <S> <C>
<ARTICLE> 9
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> JUN-30-1996
<CASH> 3,221
<INT-BEARING-DEPOSITS> 57
<FED-FUNDS-SOLD> 2,950
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 9,011
<INVESTMENTS-CARRYING> 2,231
<INVESTMENTS-MARKET> 2,184
<LOANS> 22,697
<ALLOWANCE> 275
<TOTAL-ASSETS> 41,861
<DEPOSITS> 37,521
<SHORT-TERM> 328
<LIABILITIES-OTHER> 242
<LONG-TERM> 0
0
0
<COMMON> 1,284
<OTHER-SE> 2,486
<TOTAL-LIABILITIES-AND-EQUITY> 41,861
<INTEREST-LOAN> 1,124
<INTEREST-INVEST> 298
<INTEREST-OTHER> 66
<INTEREST-TOTAL> 1,488
<INTEREST-DEPOSIT> 582
<INTEREST-EXPENSE> 594
<INTEREST-INCOME-NET> 894
<LOAN-LOSSES> 24
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 717
<INCOME-PRETAX> 339
<INCOME-PRE-EXTRAORDINARY> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 246
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
<YIELD-ACTUAL> 2.42
<LOANS-NON> 23
<LOANS-PAST> 276
<LOANS-TROUBLED> 87
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 266
<CHARGE-OFFS> 24
<RECOVERIES> 9
<ALLOWANCE-CLOSE> 275
<ALLOWANCE-DOMESTIC> 155
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 120
</TABLE>
