<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 10-QSB
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the QUARTER ENDED MARCH 31, 1999 Commission file number: 0-11090
NAPA NATIONAL BANCORP
(Exact name of Small Business Issuer as specified in its charter)
CALIFORNIA 94-2780134
(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification Number)
901 MAIN STREET, NAPA, CALIFORNIA 94559
(Address of principal executive offices) (Zip Code)
(707) 257-2440
(Issuer's telephone number)
Check whether the issuer (1) filed all reports required to be filed by Section
13 or 15(d) of the Exchange Act 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
----- -----
The number of shares of the registrant's Common Stock, no par value, outstanding
as of March 31, 1999, was 792,175.
Transitional Small Business Disclosure Format:
Yes No X
----- -----
<PAGE>
NAPA NATIONAL BANCORP
TABLE OF CONTENTS
PART I - FINANCIAL INFORMATION
ITEM 1 - FINANCIAL STATEMENTS
Consolidated Balance Sheets:
March 31, 1999
December 31, 1998
Consolidated Statements of Income:
Three Months ended March 31, 1999
Three Months ended March 31, 1998
Consolidated Statements of Cash Flows:
Three Months ended March 31, 1999
Three Months ended March 31, 1998
Notes to Consolidated Financial Statements
ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION
PART II - OTHER INFORMATION
ITEM 1 - LEGAL PROCEEDINGS
ITEM 2 - CHANGES IN SECURITIES AND USE OF PROCEEDS
ITEM 3 - DEFAULTS UPON SENIOR SECURITIES
ITEM 4 - SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
ITEM 5 - OTHER INFORMATION
ITEM 6 - EXHIBITS AND REPORTS ON FORM 8-K
SIGNATURES
INDEX TO EXHIBITS
2
<PAGE>
PART I -- FINANCIAL INFORMATION
ITEM 1 -- FINANCIAL STATEMENTS
The following interim consolidated financial statements of Napa National Bancorp
and its subsidiary Napa National Bank are unaudited and prepared in accordance
with generally accepted accounting principles for interim financial information
and with the instructions to Form 10-QSB. However, they reflect all adjustments
(which included only normal recurring adjustments) which are, in the opinion of
management, necessary for a fair presentation of financial position, results of
operations, and cash flows for the interim periods presented and are normal and
recurring.
Results for the period as presented are not necessarily indicative of results to
be expected of the year as a whole.
3
<PAGE>
NAPA NATIONAL BANCORP AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(Dollars in 000's)
<TABLE>
<CAPTION>
March 31, December 31,
1999 1998
-------------------- ------------------
<S> <C> <C>
ASSETS
Cash and due from banks $ 7,474 $ 9,969
Federal funds sold 9,365 13,590
Investment securities: Available for Sale, at market value 34,930 33,844
Investment securities: Held to Maturity, at amortized cost 1,798 1,798
Federal Reserve and Federal Home Loan Bank Stock 558 553
Loans, less allowance for loan losses of $1,710 and $1,671
at March 31, 1999 and December 31, 1998 81,358 77,647
Premises, furniture, fixtures and equipment,net 3,965 3,908
Accrued interest receivable 990 1,211
Other real estate owned - 262
Other assets 1,372 1,307
-------- --------
TOTAL ASSETS $141,810 $144,089
======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits:
Non-interest-bearing demand $ 33,364 $ 36,557
Interest-bearing:
Savings 19,892 20,534
Transaction 34,998 33,042
Time certificates 42,703 43,118
-------- --------
Total deposits 130,957 133,251
Accrued interest payable and other liabilities 869 1,025
-------- --------
TOTAL LIABILITIES 131,826 134,276
-------- --------
SHAREHOLDERS' EQUITY
Common stock, no par value, 20,000,000 shares authorized;
792,175 and 791,000 shares issued and outstanding at
March 31, 1999 and December 31, 1998, respectively 7,216 7,207
Retained earnings 2,826 2,607
Net unrealized loss on available for sale securities, net of taxes (58) (1)
-------- --------
TOTAL SHAREHOLDERS' EQUITY 9,984 9,813
-------- --------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $141,810 $144,089
======== ========
</TABLE>
(See notes to consolidated financial statements)
4
<PAGE>
NAPA NATIONAL BANCORP AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(Dollars in 000's, except earnings per share)
<TABLE>
<CAPTION>
Three Months Ended
March 31,
-------------------------------------
1999 1998
------------------ --------------
<S> <C> <C>
Interest income:
Interest and fees on loans $1,808 $2,007
Interest on federal funds sold 137 226
Interest on time deposits with other financial institutions - 14
Interest and dividends on investment securities 483 342
------ ------
Total interest income 2,428 2,589
Interest expense on deposits 782 865
------ ------
Net interest income 1,646 1,724
Provision for loan losses - 105
------ ------
Net interest income after provision for loan losses
1,646 1,619
------ ------
Non-interest income:
Service charges on deposit accounts 159 117
Mortgage loan service fees 9 16
Other 136 136
------ ------
Total non-interest income 304 269
------ ------
Non-interest expense:
Salaries and employee benefits 823 818
Occupancy 89 119
Furniture, fixtures and equipment 101 103
Other 419 365
------ ------
Total non-interest expense 1,432 1,405
------ ------
Income before income taxes 518 483
Income taxes 200 191
------ ------
Net income $ 318 $ 292
====== ======
Earnings per common share $0.40 $0.37
====== ======
Earnings per common share -- Assuming Dilution $0.38 $0.35
====== ======
Weighted average common shares outstanding used to compute net earnings
per common share 791,392 783,500
======= =======
Weighted average common shares outstanding used to compute net earnings
per common share -- Assuming Dilution 837,784 826,998
======= =======
</TABLE>
(See notes to consolidated financial statements)
5
<PAGE>
NAPA NATIONAL BANCORP AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(Dollars in 000's)
<TABLE>
<CAPTION>
Three Months Ended
March 31,
---------------------------------
1999 1998
-------------- --------------
<S> <C> <C>
Cash flows from operating activities:
Net income $ 318 $ 292
Reconciliation of net income to net cash provided by operating activities:
Depreciation on premises and equipment 102 100
Gain on sale of other real estate owned (9) -
Amortization of deferred loan fees and discounts/premiums on securities 150 71
Provision for loan losses - 105
Decrease in accrued interest receivable 221 121
Increase in other assets, net (27) (75)
(Decrease) Increase in accrued interest payable and other liabilities (156) 140
------ ------
NET CASH PROVIDED BY OPERATING ACTIVITIES 599 754
------ ------
Cash flows from investing activities:
Loan originations, net of repayments (3,728) (1,081)
Proceeds from maturities of time deposits with other financial
institutions - 990
Activity in securities held to maturity:
Purchases - (975)
Maturities - 974
Activity in securities available for sale:
Purchases (4,874) (9,392)
Principal Paydowns 3,224 513
Funds from Call on Available for sale 333
(Purchases) Sale of Federal Reserve and Federal Home Loan Bank stock (5) 71
Purchases of furniture and equipment (158) (101)
Proceeds on sale of other real estate owned 275 -
------ ------
NET CASH USED BY INVESTING ACTIVITIES (4,933) (9,001)
------ ------
Cash flows from financing activities:
Net (decrease) increase in deposits (2,296) 9,843
Stock options exercised 9
------ ------
Cash dividends (99) (97)
------ ------
NET CASH (USED) PROVIDED BY FINANCING ACTIVITIES (2,386) 9,746
------ ------
(continued)
</TABLE>
(See notes to consolidated financial statements)
6
<PAGE>
NAPA NATIONAL BANCORP AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(Dollars in 000's)
<TABLE>
<CAPTION>
Three Months Ended
March 31,
-----------------------------------
1999 1998
-------------- --------------
<S> <C> <C>
(DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS (6,720) 1,499
------ ------
Cash and cash equivalents at beginning of period 23,559 26,147
------ ------
Cash and cash equivalents at end of period $16,839 $27,646
======= =======
CASH AND CASH EQUIVALENTS AT MARCH 31:
Cash and due from banks $ 7,474 $ 9,686
Federal funds sold 9,365 17,960
----- ------
$16,839 $27,646
======= =======
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid for interest $828 $890
==== ====
Cash paid for income taxes $115 $275
==== ====
</TABLE>
(See notes to consolidated financial statements)
7
<PAGE>
NAPA NATIONAL BANCORP AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Note 1 -- Comprehensive Income
As of January 1, 1998, the Company adopted Statement of Financial Accounting
Standards No. 130 (SFAS 130), Reporting Comprehensive Income. SFAS 130
establishes new rules for the reporting and display of comprehensive income or
loss and its components; however, the adoption of the Statement had no impact on
the Company's net income or shareholders' equity. SFAS 130 requires unrealized
gains or losses on the Company's available-for-sale securities, which prior to
adoption were reported separately in shareholders' equity to be included in
other comprehensive income or loss.
During the first quarter of 1999 and 1998, total comprehensive income amounted
to the following:
<TABLE>
<CAPTION>
1999 1998
------ ------
<S> <C> <C>
Net income $ 318 $ 292
Other Comprehensive Income:
Unrealized Loss on Securities (57) (73)
----- -----
Comprehensive Income $ 261 $ 219
===== =====
</TABLE>
8
<PAGE>
ITEM 2 -- MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION
Napa National Bancorp (the "Company") was incorporated in 1981 in the State of
California and is headquartered in Napa, California. The Company is a bank
holding company. Its principal subsidiary, Napa National Bank (the "Bank"), was
organized as a national banking association in 1982. The following discussion
and analysis by the Company's management compares the results of the Company's
operations for the three months ended March 31, 1999 and 1998 and the financial
condition and liquidity of the Company as of March 31, 1999 and December 31,
1998.
Certain matters discussed in this report are forward-looking statements that are
subject to risks and uncertainties that could cause actual results to differ
materially from those projected in the forward-looking statements. Such risks
and uncertainties include, but are not limited to, the competitive environment
and its impact on the Company's net interest margin, changes in interest rates,
asset quality risks, concentrations of credit and the economic health of Napa
County (particularly the health of the wine industry), volatility of rate
sensitive deposits, asset/liability matching risks, the dilutive impact which
might occur upon the issuance of new shares of common stock, and liquidity
risks. Therefore, the matters set forth below should be carefully considered
when evaluating the Company's business and prospects. For additional information
concerning these risks and uncertainties, please refer to the Company's Annual
Report on Form 10-KSB for the year ended December 31, 1998.
Financial Condition
The Company's assets decreased approximately $2.3 million during the first three
months of 1999 as compared to the period ended December 31, 1998. The
substantial portion of that decrease was due to the decline in non-interest
bearing deposits. Total assets were $141.8 million at March 31, 1999 compared
with $144.1 million at December 31, 1998. Total deposits decreased to $131.0
million at March 31, 1999 compared with $133.3 million at December 31, 1998.
The loan portfolio of $81.4 million at March 31, 1999 increased $3.8 million as
compared to the December 31, 1998 total of $77.6 million. The allowance for
loan losses on March 31, 1999 was $1,710,000 or 2.05% of total gross loans
outstanding. Loan recoveries exceeded loan charge-offs for the first three
months of 1999 by $39,500. In the opinion of management, the allowance for loan
losses was considered adequate at March 31, 1999 based on management's analysis
of the risks inherent in the loan portfolio.
The Company's "held to maturity securities" consist of Treasury bonds,
municipals and stock in the Federal Reserve and Federal Home Loan Bank and are
classified as such in accordance with SFAS No. 115. At March 31, 1999, the
"held to maturity" investment portfolio's amortized cost and fair market value
was $2,356,000.
9
<PAGE>
The Company's available for sale portfolio include collateralized mortgage
obligations and municipal bonds. The Company's general policy is to acquire "A"
rated or better, insured tax-free municipal bonds. Collateralized mortgage
obligations have an average life of five years or less at purchase date. At
March 31, 1999, collateralized mortgage obligations and municipal securities had
an amortized cost of $26,585,000 and $8,444,000, respectively, and a fair value
of $26,362,000 and $8,568,000, respectively.
Results of Operations
The Company's after-tax earnings were $318,000 during the first three months of
1999 compared with $292,000 during the same period in 1998.
Net interest income, the principal source of the Company's earnings, represents
the difference between interest and fees earned from lending and investment
activities and the interest paid on deposits used to fund those activities.
Variations in the volume and mix of loans, investments, and deposits and their
relative sensitivity to movements in interest rates impact net interest income.
During the first three months of 1999, net interest income at $1,645,000 was
$78,000 behind the same period in 1998. The primary cause of the decrease was
the overall decline in interest rates and the impact it had on the loan
portfolio. Yield on loans declined approximately 100 basis points for the
three months of 1999 as compared to the same period in 1998. That decrease was
mitigated by the decrease in interest expense on interest bearing deposits.
Yield on interest bearing deposits for the first quarter of 1999 was 50 basis
points lower than as compared to the first quarter of 1998.
Non-interest income increased by $35,000 in the three months of 1999 as compared
to the same period in 1998. This increase resulted mainly from the increase in
service charges on deposit accounts.
Non-interest expenses consist of salaries and benefits provided to employees of
the Bank, expenses related to premises and equipment, and operating expenses
associated with the business affairs of the Company. Total non-interest
expenses increased $27,000 or 1.9% during the first three months of 1999 when
compared with the first three months of 1998. Salaries and benefits increased
$5,000. Other non-interest expense increased $22,000 or 3.7% for the first three
months of 1999 compared to the same period in 1998. This is primarily the result
of normal increases in operating expenses.
10
<PAGE>
Capital Resources and Adequacy
Shareholders equity was $9.9 million or 7.0% of total assets at March 31, 1999
compared with $9.8 million or 6.8% of total assets at December 31, 1998. The
ratio of capital to risk-weighted assets at March 31, 1999 was 11.90% for the
Company and 11.83% for the Bank. Both ratios exceeded the regulatory
requirements for a "well-capitalized" institution. Management anticipates that
both the Company and the Bank will continue to exceed the regulatory minimums
for "well-capitalized"institutions in the foreseeable future. Therefore, in
management's opinion, the Company and the Bank have adequate capital in order to
support future growth.
Inflationary Factors
Since the assets and liabilities of the Bank are primarily monetary in nature,
the performance of the Bank is affected more by changes in interest rates than
by inflation.
Year 2000
The risks associated with the "Year 2000" problem involve both operational
issues relating to the Bank's data processing systems and the impact of this
problem on the operations of the Bank's customers. Both of these issues could
have a significant negative impact on the Company's financial condition or
results of operations including the level of the Bank's provision for possible
loan and lease losses in future periods. See "Year 2000 Problem."
Year 2000 Problem
The "Year 2000" problem relates to the fact that many computer programs and
other technology utilizing microprocessors only use two digits to represent a
year, such as "98" to represent "1998." In the year 2000, such
programs/processors could incorrectly treat the year 2000 as the year 1900. The
Company's business is dependent on technology and data processing. As a result,
it has created a Year 2000 team whose members are familiar with the Company's
business and operations. This issue has grown in importance as the use of
computers and microprocessors has become more pervasive throughout the economy,
and interdependencies between systems has multiplied. The issue must be
recognized as a business problem, rather than simply a computer problem, because
of the way its effects could ripple through the economy. The Company could be
affected either directly or indirectly by the Year 2000 issue. This could happen
if any of its critical computer systems or equipment containing embedded logic
fail, if the local infrastructure (electric power, communications, or water
system) fails, if its significant vendors are adversely impacted, or if its
borrowers or depositors are significantly impacted by their internal systems or
those of their customers or suppliers.
11
<PAGE>
The Company utilizes ITI banking software which processes on Unisys equipment
for its data processing and mission critical needs. The Company does not have
access to the programming code of the software. The Company is dependent on this
system, as well as personal computers connected on a local area network.
The Company's business also involves non-IT products and services, some of which
have embedded technology which might not be Year 2000 compliant. Some non-IT
products and services involve various infrastructure issues such as power,
communications and water, as well as elevators, ventilation and air conditioning
equipment. The Company classifies power and communications as non-IT mission
critical systems.
The Company's application software, data processing vendors, computer operating
systems, local area network and the power and communication infrastructure
provide critical support to substantially all of its business and operations.
Failure to successfully complete renovation, validation and implementation of
its mission critical IT systems could have a material adverse effect on the
operations and financial performance of the Company. Moreover, Year 2000
problems experienced by significant vendors or customers of the Company or power
or communications systems could negatively impact the business and operations of
the Company even if its own critical IT systems are capable of functioning
satisfactorily. Due to the numerous issues and problems which might arise and
lack of guarantees concerning Year 2000 readiness from non-IT service providers
such as power and communication systems vendors, the Company cannot quantify the
potential cost of problems if the Company's renovation and implementation
efforts or the efforts of significant vendors or customers are not successful.
State of Readiness
The Company has conducted a comprehensive review of its IT systems to identify
the systems that could be affected by the Year 2000 problem and has developed a
plan designed to resolve the problem. The Company believes it has made
continuous progress in addressing all material aspects of the Year 2000 problem.
The Company completed the Awareness and Assessment Phases, as defined by the
Federal Financial Institutions Examination Council (FFIEC), for its IT systems
and Company facilities in 1998 and continues to update its assessment as needed.
The Company has identified mission-critical systems, assessed the state of Year
2000 compliance of those systems, and developed a plan to correct non-compliant
systems. The Company reports on a regular basis to the Board of Directors on
Year 2000 progress.
12
<PAGE>
The target date established by the FFIEC for substantial completion of testing
for internal mission-critical IT systems was December 31, 1998. At December 31,
1998, the Company had substantially completed testing of non-Year 2000 compliant
IT Systems that were identified as mission-critical. By March 31, 1999 FFIEC
Guidelines require that testing by companies relying on service providers for
mission-critical systems should be substantially complete. External testing with
material other third parties (customers, other financial institutions, business
partners, payment system providers, etc.) should have begun. By June 30, 1999
testing of mission-critical systems should be complete and implementation should
be substantially complete.
Based on information provided by outside service providers and its testing
process the Company believes that its mission critical IT systems are
substantially Year 2000 compliant. The Company intends to work with its vendors
to resolve any other issues discovered during the testing process. The Company
plans to complete secondary testing, where it is deemed appropriate, by June 30,
1999. The Company is also monitoring the Year 2000 readiness of outside product
and service vendors. The Company cannot test for Year 2000 readiness of its
power and telecommunications vendors, although the Company is monitoring their
readiness. Additionally, at the date of this report, management of the Company
had not identified any serious problems with its mission-critical systems.
Costs
The Company is expensing all period costs associated with the Year 2000 problem.
Through December 31, 1998, the amount of such expense had been approximately
$50,000. Management estimates that the Company will incur approximately an
additional $200,000 in Year 2000 related expenses in fiscal 1999. There can be
no assurance that these expenses will not increase as further testing and
assessment of vendor and customer readiness and contingency planning for the
Year 2000 continues. The above cost estimates include costs for consultants,
running tests and technical assistance from vendors, as well as development of
contingency plans and costs of communicating with customers concerning Year 2000
issues.
Risks
Because the Company recognizes that its business and operations could be
adversely affected if key business partners fail to achieve timely Year 2000
compliance, the Company is evaluating strategies to manage and mitigate the
risks to the Company of their Year 2000 failures.
13
<PAGE>
Management has identified a long-range, most reasonably likely, worst case
scenario. This scenario suggests that the Year 2000 problem might negatively
impact some significant customers and non-IT vendors/products through the
failure of the customer and/or vendor to be prepared or the impact on them of
the failure of their own vendors and customers. Management believes that this
scenario could occur in conjunction with an economic recession arising from the
Year 2000 problem. The Bank's asset quality and earnings could be adversely
impacted in that event. It is not possible to predict the effect of this Year
2000 scenario on the economic viability of the Bank's customers and the related
adverse impact it may have on Company's financial position and results of
operations, including the level of the Bank's provision for possible loan losses
in future periods. Further there can be no assurance that other possible adverse
scenarios will not occur.
The Company presently believes that, based upon its Year 2000 testing program
and assuming representations of Year 2000 readiness from significant vendors and
customers are accurate, the Year 2000 issue should not pose significant
operational risks for the Company's IT systems. However, other significant risks
relating to the Year 2000 problem are that of the unknown impact of this problem
on the operations of the Bank's customers and vendors, the impact of
infrastructure failures such as power, communications and water on the Company's
IT systems, the economy and future actions which banking or securities
regulators may take.
The Company is making efforts to ensure that its customer base is aware of the
Year 2000 problem. In addition to seminars for and mailings to its customer
base, the Bank has amended its credit policy and credit authorization
documentation to include consideration regarding the Year 2000 problem.
Significant customer relationships have been identified, and such customers are
being contacted by the Bank's account officers to determine whether they are
aware of Year 2000 risks and whether they are taking preparatory actions. An
initial assessment of these customers was substantially completed in late 1998.
The Company is taking follow-up action in 1999 based on the results of this
assessment.
The Company has also attempted to contact major vendors and suppliers of non-
software products and services (including those where products utilize embedded
technology) to determine the Year 2000 readiness of such organizations and/or
the products and services which the Company purchases from such organizations.
The Company is monitoring reports provided by such vendors regarding their
preparations for Year 2000. This is an ongoing process and the Company intends
to continue to monitor information provided by such vendors through the century
date change.
14
<PAGE>
Federal banking regulators have responsibility for supervision and examination
of banks to determine whether they have an effective plan for identifying,
renovating, testing and implementing solutions for Year 2000 processing and
coordinating Year 2000 processing capabilities with its customers, vendors and
payment system partners. Examiners are also required to assess the soundness of
an institution's internal controls and to identify whether further corrective
action may be necessary to ensure an appropriate level of attention to Year 2000
processing capabilities. Management believes it is currently in compliance with
the federal bank regulatory guidelines and timetables.
Contingency Plans
The FFIEC guidelines indicate that remediation contingency plans may be
necessary for mission-critical applications or systems that have not been
certified as Year 2000 ready. In September 1998, the Company began to develop
high-level remediation contingency plans for applications and systems used by
the Company that are deemed mission-critical. Generally this has involved the
identification of an alternate vendor or other expected actions the Company
could take, as well as the establishment of a trigger date to implement the
contingency plan. The Company is currently working to develop further
contingency plans to address potential business disruptions which might result
from Year 2000 issues.
By June 1999, the Company expects to complete a Year 2000 business resumption
plan based on a review of reasonable worst-case scenarios. This business
resumption plan is intended to enable the Company to continue to conduct its
core business despite unexpected Year 2000-related failures of systems or
services. This will involve, among other things procedures to be followed in the
event of a power failure, communications failure, or system failure which occurs
despite the testing which has been performed. The Company intends to test and
refine this plan by September 1999.
15
<PAGE>
PART II -- OTHER INFORMATION
ITEM 1 -- LEGAL PROCEEDINGS
As of March 31, 1999, the Company was not party to any significant legal
proceeding.
ITEM 2 -- CHANGES IN SECURITIES AND USE OF PROCEEDS
There were no changes in the Company's securities during the quarter.
ITEM 3 -- DEFAULTS UPON SENIOR SECURITIES
No securities of this nature.
ITEM 4 -- OTHER INFORMATION
None.
ITEM 5 -- EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits. See Index to Exhibits to this Form 10-QSB, for a list of the
exhibits filed as a part of this report and incorporated herein by
reference.
(b) Reports on Form 8-K:
The Company did not file a report on Form 8-K during the first quarter
of 1999.
16
<PAGE>
SIGNATURES
In accordance with the requirements of the Exchange Act, the Registrant has
caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.
NAPA NATIONAL BANCORP
---------------------
(Registrant)
Date: May 14, 1999 /s/ Brian J. Kelly
------------------
Brian J. Kelly
President / COO
Date: May 14, 1999 /s/ Michael D. Irwin
---------------------
Michael D. Irwin
Chief Financial Officer
17
<PAGE>
INDEX TO EXHIBITS
EXHIBIT NO. DESCRIPTION
3(i)* Articles of Incorporation of the Registrant, as amended.
3(ii)* Restated Bylaws of the Registrant.
4.1* A specimen copy of the certificates evidencing Common Stock.
10.1* Napa National Bancorp 1992 Stock Option Plan.
10.2* Form of Incentive Stock Option Agreement.
10.3* Form of Nonstatutory Stock Option Agreement.
27 Financial Data Schedule.
*Previously filed.
18
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 9
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-START> JAN-01-1999
<PERIOD-END> MAR-31-1999
<CASH> 7,474
<INT-BEARING-DEPOSITS> 0
<FED-FUNDS-SOLD> 9,365
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 34,930
<INVESTMENTS-CARRYING> 1,798
<INVESTMENTS-MARKET> 1,798
<LOANS> 83,068
<ALLOWANCE> 1,710
<TOTAL-ASSETS> 141,810
<DEPOSITS> 130,957
<SHORT-TERM> 0
<LIABILITIES-OTHER> 869
<LONG-TERM> 0
0
0
<COMMON> 7,216
<OTHER-SE> 2,826
<TOTAL-LIABILITIES-AND-EQUITY> 141,810
<INTEREST-LOAN> 1,808
<INTEREST-INVEST> 483
<INTEREST-OTHER> 137
<INTEREST-TOTAL> 2,428
<INTEREST-DEPOSIT> 782
<INTEREST-EXPENSE> 782
<INTEREST-INCOME-NET> 1,646
<LOAN-LOSSES> 0
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 1,432
<INCOME-PRETAX> 518
<INCOME-PRE-EXTRAORDINARY> 518
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 318
<EPS-PRIMARY> 0.40
<EPS-DILUTED> 0.38
<YIELD-ACTUAL> 5.05
<LOANS-NON> 108
<LOANS-PAST> 0
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 1,671
<CHARGE-OFFS> 7
<RECOVERIES> 46
<ALLOWANCE-CLOSE> 1,710
<ALLOWANCE-DOMESTIC> 1,710
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
