10-Q
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For Quarter Ended June 30, 1995
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 2-76198
FIRST NATIONAL BANKSHARES, INC.
(Exact Name of Registrant as Specified in Its Charter)
Organized in Louisiana 72-0807084
(State or Other Jurisdiction (IRS Employer Identification No.)
of Incorporation or
Organization)
600 East Main Street, Houma, Louisiana 70360
(Address of Principal Executive Office - Zip Code)
Registrant's telephone number, including area code: (504) 868-1660
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 classes of common stock, as of the latest practicable
date.
Class Outstanding
Common Stock ($2.50 par value) 2,017,600 shares
FIRST NATIONAL BANKSHARES, INC.
FORM 10-Q
INDEX
Part I. Financial Information:
Item 1. Financial Statements
Consolidated Statements of Condition as of
June 30, 1995 and December 31, 1994
Consolidated Statements of Income - Three
months and six months ended June 30,
1995 and 1994
Consolidated Statements of Cash Flows for
six months ended June 30, 1995 and 1994
Notes to Consolidated Financial Statements
Item 2. Management's Discussion and Analysis
of Financial Condition and Results
of Operations
Part II. Other Information:
Item 4. Submission of Matters to a Vote
of Security Holders
Item 6. Exhibits and Reports on Form 8-K
Signatures
FIRST NATIONAL BANKSHARES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CONDITION
(In thousands)
(Unaudited)
06-30-95 12-31-94*
ASSETS
Cash and due from banks $ 7,333 $ 6,951
Due from financial institutions - Interest-bearing 5,574 16,004
Securities held-to-maturity (market value of
$54,864 and $53,632 at June 30, 1995 and
December 31, 1994, respectively) 55,161 56,809
Securities available-for-sale at market value
(amortized cost of $17,960 and $11,217 at
June 30, 1995 and December 31, 1994,
respectively) 18,217 11,130
Loans 106,869 93,663
Less: Reserve for possible loan losses 2,784 2,855
Net Loans 104,085 90,808
Premises and equipment 5,512 5,732
Other real estate and foreclosed assets, net 460 423
Other assets 8,680 9,675
TOTAL ASSETS $205,022 $197,532
LIABILITIES
Deposits:
Non interest-bearing deposits $ 28,091 $ 27,310
Interest-bearing deposits 158,833 150,898
Total deposits 186,924 178,208
Federal funds purchased & securities sold
under repurchase agreements 1,167 3,634
Accrued interest, taxes and other liabilities 928 951
Notes payable 0 89
Dividends payable 101 202
TOTAL LIABILITIES 189,120 183,084
SHAREHOLDERS' EQUITY
Common stock 5,044 5,044
Par value ................................$2.50
Number of shares authorized .........10,000,000
Number of shares outstanding ........ 2,017,600
Additional paid in capital 16,454 16,454
Accumulated deficit (3,901) (4,958)
Net unrealized losses on securities
available-for-sale (1,695) (2,003)
ESOP - deferred compensation 0 (89)
TOTAL SHAREHOLDERS' EQUITY 15,902 14,448
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $205,022 $197,532
*The statement of condition at December 31, 1994 has been taken
from the audited statement of condition at that date. The
accompanying notes are an integral part of these statements.
FIRST NATIONAL BANKSHARES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
(In thousands, except per share data)
Three months ended Six months ended
06-30-95 06-30-94 06-30-95 06-30-94
INTEREST INCOME
Interest and fees on loans $2,471 $1,901 $4,713 $3,781
Interest on securities:
U.S. government securities 1,153 1,016 2,258 1,938
Mortgage-backed securities 92 220 189 403
State and municipal securities 15 14 29 28
Other securities 52 38 101 84
Interest on funds sold 1 28 49 96
Interest on deposits due from
financial institutions 64 0 211 0
Total interest income 3,848 3,217 7,550 6,330
INTEREST EXPENSE
Interest on deposits 1,476 1,100 2,814 2,190
Interest on funds purchased 11 35 31 50
Total interest expense 1,487 1,135 2,845 2,240
Net interest income 2,361 2,082 4,705 4,090
Provision for possible loan losses 0 (500) 0 (500)
Net interest income after
provision for possible loan losses 2,361 2,582 4,705 4,590
NON-INTEREST INCOME
Service charges on deposit accounts 247 244 494 493
Other commissions and fees 76 84 151 161
Other operating income 14 34 84 83
Securities gains (losses) (2) (104) (3) (101)
Trust services income 107 79 188 158
Total non-interest income 442 337 914 794
NON-INTEREST EXPENSE
Salaries 744 701 1,460 1,401
Employee benefits 180 208 381 417
Net occupancy expense 153 173 315 328
Equipment expense 164 157 325 297
Expense associated with OREO
and problem loans 57 70 83 169
Other operating expense 744 564 1,423 1,197
Total non-interest expense 2,042 1,873 3,987 3,809
Income before income taxes 761 1,046 1,632 1,575
Income taxes 182 (125) 474 (146)
Net income $ 579 $1,171 $1,158 $1,721
Per share data (based on the weighted
average shares outstanding,
2,017,600, during the periods:)
Net income $.29 $.58 $.57 $.85
Cash dividends declared $.05 $.00 $.05 $.00
The accompanying notes are an integral part of these statements.
FIRST NATIONAL BANKSHARES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Six months ended June 30,
(In Thousands) 1995 1994
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 1,158 $ 1,721
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation, amortization and accretion 181 304
Provision for loan losses 0 (500)
Provision for losses on other real estate 1 (33)
Deferred income taxes 464 (164)
Realized (gains) losses on securities 3 101
(Gains) losses on sale of property (44) 74
Increase in accrued interest receivable (398) (240)
Increase in accrued interest payable 89 105
Decrease in other assets 776 23
Decrease in other liabilities (112) (119)
NET CASH PROVIDED BY OPERATING ACTIVITIES 2,118 1,272
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from sales of securities
available-for-sale 0 28,803
Proceeds from maturities and calls of securities -
Held-to-maturity 1,805 23,472
Available-for-sale 8,256 11,780
Purchase of securities -
Held-to-maturity 0 (12,738)
Available-for-sale (14,956) (44,972)
Loans purchased 0 (2,113)
Net (increase) decrease in loans (13,432) 786
Net (increase) decrease in short-term investments 10,430 (1,400)
Proceeds from sale of premises, equipment &
foreclosed property 188 396
Purchases of premises and equipment (74) (269)
NET CASH (USED) PROVIDED BY INVESTING ACTIVITIES (7,783) 3,745
CASH FLOWS FROM FINANCING ACTIVITIES:
Net increase in non-interest bearing deposits 776 9,519
Net decrease in interest bearing deposits other than
certificates of deposits (3,099) (13,935)
Increase (decrease) in certificates of deposits 11,039 (2,026)
Increase (decrease) in short-term borrowings (2,467) 520
Dividends paid (202) 0
NET CASH (USED) PROVIDED BY FINANCING ACTIVITIES 6,047 (5,922)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 382 (905)
Cash and cash equivalents at beginning of period 6,951 7,262
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 7,33 $ 6,357
CASH INTEREST EXPENSE PAID $ 2,757 $ 2,135
The accompanying notes are an integral part of these statements.
FIRST NATIONAL BANKSHARES, INC. AND SUBSIDIARIES
JUNE 30, 1995
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
NOTE 1: First National Bankshares, Inc. (the Company) is a bank
holding company whose principal subsidiary is the First National
Bank of Houma (First National).
NOTE 2: The Company adopted Statement of Accounting Standards
(SFAS) No. 114, "Accounting by Creditors for Impairment of a
Loan," effective January 1, 1995. SFAS No. 114 requires the
measurement of impaired loans be based on the present value of
expected future cash flows discounted at the loan's effective
interest rate, or at the loan's observable market price or the
fair value of its collateral. SFAS No. 114 does not apply to
large groups of smaller balance homogeneous loans that are
collectively evaluated for impairment. For the Company, loans
collectively evaluated for impairment include all single family
mortgage loans, loans to individuals for household, family and
other consumer expenditures and commercial, industrial, and real
estate loans under a certain dollar amount, excluding loans
which have entered the workout process. The adoption of
SFAS No. 114 did not result in additional provisions
for losses due to the Company's continuing policy of measuring
loan impairment based on methods prescribed in SFAS No. 114.
The Company considers a loan to be impaired when, based upon
current information and events, doubt exists that the Company
will be able to collect all amounts due according to the
contractual terms of the loan agreement. The Company's impaired
loans within the scope of SFAS No. 114 include certain troubled
debt restructurings, and performing and nonperforming major
loans in which full payment of principal or interest is doubtful.
The Company also adopted Statement of Financial Accounting
Standards No. 118, "Accounting by Creditors for Impairment of a
Loan-Income Recognition and Disclosures", effective January 1,
1995. This Statement allows a creditor to use existing methods
for recognizing interest income on impaired loans and thus the
adoption of SFAS No. 114 did not result in any change in the
amount of interest income reported.
The Company's impaired loans and the related allowance amounted
to approximately $1,571,000 and $606,000 at June 30, 1995,
respectively. There was no significant change in these amounts
during the six months ended June 30, 1995. Interest income
recognized on these loans amounted to approximately $7,800 for
the six months ended June 30, 1995.
NOTE 3: The accompanying unaudited interim financial statements
have been prepared pursuant to the rules and regulations of the
Securities and Exchange Commission. Certain information and
footnote disclosures required by generally accepted accounting
principles for complete financial statements have been omitted.
It is suggested that these interim statements be read in
conjunction with the financial statements and notes thereto
included in the 1994 Annual Report on Form 10-K of First
National Bankshares, Inc.
In the opinion of management, all adjustments (consisting of
only normal recurring adjustments) necessary for a fair
presentation of the information shown have been included.
The foregoing six months interim results of 1995 are not
necessarily indicative of the results of operations of the full
year 1995.
FIRST NATIONAL BANKSHARES, INC. AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF THE
CONSOLIDATED STATEMENTS OF INCOME AND
CHANGES IN FINANCIAL POSITION
Changes in the Company's Consolidated Financial Position
During the first half of 1995, loans increased $13,206,000, a
14.10 percent increase from year end 1994. That increase is the
result of a significant increase in the demand for loans being
generated by a more stable economy in our market place, an
officer call program and the success of the Bank's indirect
lending program.
Proceeds from securities available-for-sale sold during the
fourth quarter of 1994 were used to purchase U.S. Treasury
obligations in the first half of 1995. This resulted in an
increase of $7,087,000 or a 63.7 percent increase in securities
available-for-sale.
On January 1, 1994, the Company adopted Statement No. 115,
Accounting for Certain Investments in Debt and Equity
Securities. This Statement required securities to be classified
into one of three reporting categories (held-to-maturity,
available-for-sale, or trading). Securities classified as
held-to-maturity are carried at amortized cost. Those
classified as available-for-sale are carried at market value
with the unrealized gain or loss (net of income tax effect)
reflected as a component of shareholders' equity. Those
classified as trading are carried at market value with the
unrealized gain or loss reflected in the statement of income.
In September and November 1994, the Company reclassified
securities with an aggregate amortized cost of $49,324,000 (the
"Reclassified Securities") from the available-for-sale portfolio
to the held-to-maturity portfolio. The $3,005,000 difference
between the estimated market value and the aggregate amortized
cost of the Reclassified Securities as of the date of
reclassification (the "Unrealized Interim Loss") is being
credited back to shareholders' equity over the remaining lives
of the securities, which is currently estimated to be 16 years.
As of June 30, 1995, the after-tax effect of the remaining
Unrealized Interim Loss with respect to the Reclassified
Securities was $1,864,000, which contributed to the total
$1,695,000 net unrealized loss adjustment to shareholders'
equity as of that date. As of December 31, 1994, the after-tax
effect of the remaining Unrealized Interim Loss with respect to
the Reclassified Securities was $1,945,000.
FAS 115 also mandates that investment securities classified as
held-to-maturity be carried at amortized cost. Securities
classified as held-to-maturity at June 30, 1995 had gross
unrealized gains of $417,000 and gross unrealized losses
of $3,534,000 ($2,824,000 of which is the unaccredited
amount of the Unrealized Interim Loss with respect to the
Reclassified Securities as of that date). As of December 31,
1994, gross unrealized gains and gross unrealized losses in the
held-to-maturity account were $56,000 and $6,181,000,
respectively.
At June 30, 1995 and December 31, 1994, other assets included
$5,563,000 and $6,186,000, respectively, in deferred tax assets.
The reduction in deferred tax assets is attributable to the use
by the Company of net operating loss carryforwards during the
period. To the extent the Company continues to utilize net
operating loss carryforwards in future periods, there will be
further reductions in deferred tax assets.
Non interest bearing deposits reflects an increase of $781,000,
or 2.9 percent, from year end 1994. Interest bearing deposits
showed a $7,935,000 increase, a 5.3 percent increase, during the
first half of 1995. That increase was the product of the Bank's
decision to be more aggressive and competitive with interest
rates offered for local interest-bearing deposits plus the
accumulation of some temporary funds on deposit at June 30, 1995.
Results of the Company's Operations
Income before income taxes for the six month period in 1995
increased $57,000, or 3.6 percent, to $1,632,000 compared to
$1,575,000 for the first six months of 1994. Net income for the
same period was $1,158,000, a decrease of $563,000, or 32.7
percent, from the first six months of 1994. The decrease is
directly attributable to the Company recording a $474,000 income
tax expense in 1995 as compared to recording a $146,000 credit
to income tax expense in the same period in 1994, and to the
Company's not recording a credit provision for loan losses in
1995, compared to recording a $500,000 credit provision in the
same period in 1994. In 1993, when the Company changed its
method of accounting for income taxes from the deferred method
to the liability method as required by Statement of Financial
Accounting Standard No. 109, it established a valuation
allowance against its deferred tax assets. This valuation
allowance was established due to the uncertainty of utilizing
prior years' net operating loss carryforwards. During 1994, the
Company reduced its valuation allowance based upon the
likelihood it would utilize prior years' net operating loss
carryforwards by $4,554,000 and decreased its income tax expense
by the same amount. Deferred income taxes reflect the net tax
effects of temporary differences between the carrying amounts of
assets and liabilities for financial reporting purposes and the
amounts used for income tax purposes. During the first half of
1995, the Company began utilizing its net operating loss
carryforwards and reduced deferred tax assets by $468,000. The
total provision for income tax expense at June 30, 1995 was
$474,000, with $6,000 representing the Company's estimated
alternative minimum tax for the period.
For the six month period ending June 30, 1995, compared to the
same period in 1994, interest income increased $1,220,000 or
19.3 percent, the result of higher rates earned and increased
volumes of loans. Interest expense increased $605,000 or 27.0
percent, during the same period. The principal reasons for the
increase was the increased balances in interest bearing deposits
and higher rates paid. The net effect was an increase in net
interest income of $615,000, an improvement of 15.0 percent, for
the six month period ending June 30, 1995 compared to the same
period in 1994.
Non-interest income increased $120,000, a 15.1 percent
increase, when comparing the first six months of 1995 to 1994.
The increase is directly related to a $30,000 increase in fees
for trust services recorded in 1995 and $101,000 in losses
recorded from securities transactions in 1994. Non-interest
expense increased $178,000 or 4.7 percent during the same
period. The increase reflects the net effect of increases in
salaries and wages, directors fees and professional fees and
decreases in expenses associated with OREO and other problem
loans.
Nonperforming assets decreased $147,000 or 3.0 percent at
June 30, 1995 as compared to December 31, 1994. On June 30,
1995, loans 90 days or more past due, but still accruing interest,
included a loan for $1,896,000 that is guaranteed by the Farmers
Home Administration. That loan on December 31, 1994 was
included in renegotiated loans still accruing. Shown below is a
schedule of the Company's nonperforming assets (in thousands):
06-30-95 12-31-94
Loans:
90 days or more past due, but still
accruing interest $2,052 $ 64
Renegotiated loans still accruing 526 2,444
Nonaccruing 1,783 2,037
Total nonperforming loans 4,361 4,545
Other real estate and foreclosed
property (net of reserves) 460 423
Total nonperforming assets $4,821 $4,968
A credit provision for possible loan losses of $500,000 was
recorded in the second quarter of 1994. The credit provision in
1994 was the result of management's analysis that the then
current allowance for possible loan losses was more than
adequate to cover any potential losses. No credit provision has
been recorded in the first six months of 1995 and, at this time,
management does not anticipate a credit provision for possible
loan losses in 1995.
When comparing second quarter results of 1995 to 1994, income
before income taxes and net income decreased $285,000 and
$592,000, respectively. The decrease in income before income
taxes is the result of the $500,000 credit provision for
possible loan losses recorded in the second quarter of 1994 as
compared to no credit provision recorded in the same period in
1995 offset by $104,000 in nonrecurring losses on securities
transactions recorded in the second quarter of 1994. The
reduction in net income is attributable to the above combined
with the Company recording a $182,000 income tax expense in the
second quarter of 1995 as compared to a $125,000 credit to
income tax expense in the same period in 1994. Net interest
income before provisions for loan losses reflected an increase
of $279,000 or 13.4 percent. This increase is directly
attributable to the increase in the volume of loans. Non
interest income increased $105,000, a 31.2 percent increase.
The increase is a result of increased fees earned for trust
services in 1995 and non recurring losses recorded in the second
quarter of 1994 from securities transactions. Non interest
expense increased $169,000 or 9.0 percent. The increase was the
net effect of increases recorded for expenses for property
taxes, directors fees, advertising, and legal and professional
fees offset somewhat by reduced expenses associated with OREO
and problem loans.
At June 30, 1995, the Company held $43,603,000 or 59.4 percent
of its securities portfolio in the form of derivative financial
instruments, a decrease of $1,063,000 from
December 31, 1994. The Company's derivative financial
instruments are broadly defined as financial instruments which
derive their value from various indices. Approximately 73
percent of the Company's derivative financial instruments are
subject to interest rate caps ranging from 9.5 percent to 24.0
percent, which could adversely impact the yield and interest
income that could be realized should various indices rise above
these interest rate caps. Net interest income may be adversely
impacted in 1995 and subsequent years as a result of the
expiration in the third quarter of 1995 of "teaser rates" on
approximately $5,897,000 of derivative financial instruments.
The rates in effect, after the expiration of "teaser rates," are
floating rates which could increase or decrease in response to
changes in interest rates. Based upon interest rate indices in
effect on June 30, 1995, the expiration of "teaser rates" in
1995 would cause the interest rate to decrease from 7.00 percent
to 3.11 percent on $1,781,000 of securities maturing in July
2000, from 8.00 percent to 3.11 percent on $2,541,000 of
securities maturing in August 2003 and from 11.00 percent to
2.71 percent on $1,576,000 of securities maturing in
September 2008. Assuming interest rate indices remain as they
were on June 30, 1995, the effect of the expiration of these
"teaser rates" in 1995 would be the reduction in net interest
income for the second half of 1995 of approximately
$135,000.
Liquidity
The Company has attempted to position itself to meet the
demands of the changing economic conditions with a high ratio of
net liquid assets to net liabilities. At year-end 1994, this
ratio stood at 36.5 percent and on June 30, 1995, 35.7 percent.
In an attempt to position itself to meet the demands of the
changing economic conditions, the Company has identified
approximately $18,217,000 in securities available-for-sale which
are carried in the statement of condition at market value. A
schedule of the Company's interest sensitivity/GAP analysis
follows:
INTEREST SENSITIVITY/GAP ANALYSIS
(in thousands)
June 30, 1995 INTEREST RATE SENSITIVITY PERIOD
0-3 Mos. 4-12 Mos. 1-5 Yrs. Over 5 Yrs. TOTAL
ASSETS:
Loans $31,544 $12,368 $41,303 $ 19,871 $105,086
Investments 43,712 11,332 18,805 (471) 73,378
Other 5,574 0 0 0 5,574
Total assets $80,830 $23,700 $60,108 $ 19,400 $184,038
FUNDING SOURCES:
Interest-bearing
deposits $66,944 $30,045 $23,072 $ 38,772 $158,833
Short-term funds 1,167 0 0 0 1,167
Total funding sources $68,111 $30,045 $23,072 $ 38,772 $160,000
REPRICING/MATURITY GAP:
Period $12,719 $(6,345) $37,036 $(19,372)
Cumulative $12,719 $ 6,374 $43,410 $ 24,038
Period gap/
total assets 6.9% (3.4%) 20.1% (10.5%)
Cumulative gap/
total assets 6.9% 3.5% 23.6% 13.1%
Amounts stated include only fixed and variable rate instruments
in the balance sheet that are still accruing interest. Variable
rate instruments are included in the next period in which they
are subject to change in rate. The principal portion of
scheduled payments on fixed rate instruments are included in the
periods in which they become due or mature. Because changes in
rates paid on interest-bearing demand deposits have lagged
behind changes in rates on other instruments, only 50 percent of
the balance of interest-bearing demand deposits is included in
the first period and 50 percent is included in the last period.
Capital Adequacy
As previously reported in the Annual Report on Form 10-K for
the year ended December 31, 1994, the Company and First National
are subject to the regulatory risk-based capital guidelines.
The applicable risk-based capital ratios are as follows:
First National Bankshares, Inc. 06-30-95 12-31-94 Regulatory Minimums
Tier 1 Capital/Risk Weighted
Assets Ratio 13.64% 13.38% 4.00%
Total Capital/Risk Weighted
Assets Ratio 14.89% 14.63% 8.00%
Leverage Ratio 7.91% 7.28% 3.00%
First National Bank of Houma 06-30-95 12-31-94 Regulatory Minimums
Tier 1 Capital/Risk Weighted
Assets Ratio 13.45% 13.41% 4.00%
Total Capital/Risk Weighted
Assets Ratio 14.70% 14.66% 8.00%
Leverage Ratio 7.80% 7.30% 3.00%
In January of 1995, the Company paid a cash dividend, which it
had declared in December of 1994, of $.10 per common share.
This was the first dividend the Company paid since 1987. On
June 29, 1995, the Company declared a cash dividend of $.05 per
common share to shareholders of record July 14, 1995 payable
July 26, 1995. The Company was required to obtain permission
from the Federal Reserve Bank prior to the payment of these
dividends.
PART II. OTHER INFORMATION
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
At the Annual Meeting of Shareholders of the Company held on
April 4, 1995, five directors were elected to hold office until
the next Annual Meeting and until their successors shall have
been duly elected and qualified. The name of each nominee
elected as a director and the number of votes cast for or
withheld from voting for such nominee is set forth below:
Nominee Votes For Votes Withheld
James J. Buquet, Jr. 1,277,461 3,510
Jerome H. Mire 1,277,357 3,614
Kamal Abdelnour 1,277,765 3,206
Hilton J. Michel, Jr. 1,277,501 3,470
Calvin J. Ortego 1,277,909 3,062
Certain proxies marked by hand to "abstain" from voting were
treated as withholding authority to vote for any nominee. There
were no broker non-votes for directors.
Also at the Annual Meeting, shareholders adopted an amendment
to Article VIII of the Articles of Incorporation to expand the
rights to indemnification and advancement of expenses afforded
therein. The votes cast related to this amendment were as
follows:
Number of Votes
For 1,231,468
Against 29,715
Abstain 19,788
Broker non-votes 0
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
None
FIRST NATIONAL BANKSHARES, INC. AND SUBSIDIARIES
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on
its behalf by the undersigned thereunto duly authorized.
FIRST NATIONAL BANKSHARES, INC.
(Registrant Company)
DATE: August 11, 1995 BY /s/ Jerome H. Mire
JEROME H. MIRE
CHIEF EXECUTIVE OFFICER AND
PRESIDENT
DATE: August 11, 1995 BY /s/ Russell Blanchard
RUSSELL BLANCHARD
CHIEF FINANCIAL OFFICER AND
COMPTROLLER
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<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> JUN-30-1995
<CASH> 7,333
<INT-BEARING-DEPOSITS> 5,574
<FED-FUNDS-SOLD> 0
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 18,217
<INVESTMENTS-CARRYING> 55,161
<INVESTMENTS-MARKET> 54,864
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<LOANS-NON> 1,783
<LOANS-PAST> 2,052
<LOANS-TROUBLED> 1,783
<LOANS-PROBLEM> 317
<ALLOWANCE-OPEN> 2,855
<CHARGE-OFFS> 145
<RECOVERIES> 74
<ALLOWANCE-CLOSE> 2,784
<ALLOWANCE-DOMESTIC> 1,362
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 1,422
</TABLE>
