FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20949
QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF
THE SECURITIES AND EXCHANGE ACT OF 1934
For The Quarter Ended September 30, 1995 Commission File No.0-10680
CITIZENS BANCORP
(exact name of registrant as specified in its charter)
Maryland 52-1239452
(State or other jurisdiction of (I.R.S. Employer
incorporation of organization) identification No.)
14401 Sweitzer Lane, Laurel, MD 20707
(Address of principal executive offices)
(301) 206-6080
(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
As of October 19, 1995, registrant has 15,050,195 shares of
<PAGE>
INDEX
CITIZENS BANCORP AND SUBSIDIARIES
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements (Unaudited)
Consolidated Statements of Condition - September 30, 1995
and December 31, 1994.
Consolidated Statements of Income - Three months ended
September 30, 1995 and 1994 and Nine months ended
September 30, 1995 and 1994.
Consolidated Statements of Changes in Stockholders' Equity -
Nine months ended September 30, 1995 and 1994.
Consolidated Statements of Cash Flows - Nine months ended
September 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 1. Legal Proceedings
Item 2. Changes in Securities
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
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<TABLE>
PART I, ITEM 1 (Continued)
CITIZENS BANCORP AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Dollars in Thousands, Except Per Share Data)
<CAPTION>
For Three Months For Nine Months
Ended September 30, Ended September 30,
1995 1994 1995 1994
<S> <C> <C> <C> <C>
Interest Income
Interest and Fees on Loans
and Leases $43,680 $36,407 $127,082 $104,868
Interest and Dividends on Securities:
Securities Available for Sale 5,349 3,741 16,621 7,884
Taxable Investment Securities 15,567 14,995 48,127 43,058
Tax-exempt Investment Securities 543 596 1,685 1,828
Interest on Federal Funds Sold
and Securities Purchased
Under Resale Agreements 104 530
Total Interest Income 65,139 55,843 193,515 158,168
Interest Expense
Interest on Deposits 24,357 17,778 65,355 53,216
Interest on Short-term Borrowings 6,623 4,477 25,300 7,436
Total Interest Expense 30,980 22,255 90,655 60,652
Net Interest Income 34,159 33,588 102,860 97,516
Provision for Loan Losses (1,825) (1,590) (5,120) (4,820)
Net Interest Income After
Provision for Loan Losses 32,334 31,998 97,740 92,696
Other Income
Service Charges on Deposit Accounts 5,116 5,140 15,031 14,905
Other Service Charges and Fees 2,312 1,754 6,029 4,757
Other 2,698 2,398 7,671 7,257
Total Other Income 10,126 9,292 28,731 26,919
Other Expenses
Compensation and Employee Benefits 14,705 13,706 42,822 40,705
Occupancy and Equipment 5,513 6,000 16,940 16,477
Other 7,010 8,569 23,561 25,483
Total Other Expenses 27,228 28,275 83,323 82,665
Income Before Income Taxes 15,232 13,015 43,148 36,950
Income Taxes 5,783 4,955 16,321 13,921
Net Income $ 9,449 $ 8,060 $ 26,827 $ 23,029
Per Share of Common Stock
Net Income $ .63 $ .54 $ 1.79 $ 1.55
</TABLE>
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<TABLE>
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
CITIZENS BANCORP AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CONDITION
(Dollars In Thousands, Except Per Share Data)
<CAPTION>
September 30, Dec. 31,
1995 1994
<S> <C> <C>
Assets
Cash and Cash Equivalents . . . . . . . . $ 199,324 $ 215,114
Securities Available for Sale 391,334 232,150
Investment Securities (fair value
of $1,064,173 and $1,132,082
in 1995 and 1994 respectively) 1,075,699 1,195,219
Loans and Leases . . . . . . . . . . . 2,138,687 1,965,767
Less Unearned Income on Loans . . . . . 6,514 12,556
Total Loans 2,132,173 1,953,211
Less Allowance for Loan Losses. . . . . 34,404 32,249
Net Loans and Leases . . . . . . . . 2,097,769 1,920,962
Premises and Equipment, Net . . . . . . . 55,684 57,872
Accrued Income and Other Assets . . . . . 63,937 66,811
Total Assets . . . . . . . . . . . . $3,883,747 $3,688,128
</TABLE>
<TABLE>
<CAPTION>
Liabilities
<S> <C> <C>
Deposits:
Noninterest-bearing . . . . . . . . $ 654,162 $ 692,025
Interest-bearing . . . . . . . . . . 2,337,790 2,090,250
Total Deposits . . . . . . . . . . 2,991,952 2,782,275
Short-term Borrowings . . . . . . . . . . 550,439 588,295
Other Liabilities . . . . . . . . . . . . 13,773 11,179
Total Liabilities . . . . . . . . 3,556,164 3,381,749
Stockholders' Equity
Preferred Stock, $10.00 Par Value;
2,500,000 Shares; Outstanding, None
Common Stock, $2.50 Par Value;
125,000,000 Shares Authorized;
15,030,096 Shares Issued (1995) and
14,931,843 (1994) . . . . . . . . . . 37,575 37,330
Capital Surplus . . . . . . . . . . . . . 119,373 116,939
Retained Earnings . . . . . . . . . . . . 169,165 154,948
Net Unrealized Gain(Loss) on
Securities Available for Sale . . . . . 1,470 (2,838)
Total Stockholders' Equity . . . . 327,583 306,379
Total Liabilities and
Stockholders' Equity . . . . . . $3,883,747 $3,688,128
</TABLE>
PAGE
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<TABLE>
PART I, Item 1 (Continued)
CITIZENS BANCORP AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES
IN STOCKHOLDERS' EQUITY
(Dollars In Thousands, Except Per Share Data)
<CAPTION>
Net
Unrealized
Gain (Loss)
on Securities
Common Capital Retained Available
Stock Surplus Earnings for Sale Total
<S> <C> <C> <C> <C> <C>
Balance,
January 1, 1994 . . . . . . . $ 37,012 $113,684 $139,980 $ - $290,676
Net Income . . . . . . . . 23,029 23,029
Effect of Adopting SFAS 115
at Jan. 1, 1994 603 603
Cash Dividends Paid On
Common Stock . . . . . . (12,040) (12,040)
Shares of Common Stock
Sold . . . . . . . . . . 241 2,433 2,674
Net Unrealized Loss on
Securities Available
for Sale (2,174) (2,174)
Balance,
September 30, 1994 . . . . . . . .$ 37,253 $116,117 $150,969 $ (1,571) $302,768
Balance,
January 1, 1995 . . . . . . . $ 37,330 $116,939 $154,948 $ (2,838) $306,379
Net Income . . . . . . . . 26,827 26,827
Cash Dividends Paid On
Common Stock . . . . . . (12,610) (12,610)
Shares of Common Stock
Sold . . . . . . . . . . 245 2,434 2,679
Net Unrealized Gain on
Securities Available
for Sale 4,308 4,308
Balance,
September 30, 1995 . . . . . . . .$ 37,575 $119,373 $169,165 $ 1,470 $327,583
</TABLE>
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<TABLE>
PART I, Item 1 (Continued)
CITIZENS BANCORP AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOW
(Dollars In Thousands)
<CAPTION>
For Nine Months
Ended September 30,
1995 1994
<S> <C> <C>
Cash Flows From Operating Activities
Net Income . . . . . . . . . . . . . . $ 26,827 $ 23,029
Adjustments to Reconcile Net Income to
Net Cash Provided by Operating Activities:
Net Loans Held for Resale . . . . . (11,619) (6,306)
Provision for Loan Losses . . . . 5,120 4,820
Provision for Loss on Real Estate
Acquired in Settlement of Loans 1,260 3,080
Depreciation and Amortization. . . . 5,348 4,658
Amortization of Intangible Assets. . 1,087 834
Net Amortization of Premium
on Securities . 364 3,293
Increase in Accrued Interest
Receivable and Other Assets (3,378) (2,331)
Increase (Decrease)in Other
Liabilities 1,761 (57)
Other . . . . . . . . . . . . . . . (771) (66)
Net Cash Provided by
Operating Activities . . . . $ 25,999 $ 30,954
<PAGE>
Cash Flows From Investing Activities
Proceeds from Maturities of
Investment Securities:
Available for Sale . . . . . . . $ 79,849 $ 93,357
Held to Maturity . . . . . . . . 139,447 229,560
Purchases of Investment Securities:
Available for Sale . . . . . . . (231,595) (242,963)
Held to Maturity . . . . . . . . (20,940) (338,515)
Net Increase in Loans
and Lease Receivables . . . . . (171,361) (80,188)
Purchases of Premises and Equipment (3,249) (7,561)
Proceeds from Sale of Real Estate
Acquired in Settlement of Loans 6,359 2,335
Development Costs of Real Estate
Acquired in Settlement of Loans (2,260) (2,223)
Other 71 49
Net Cash Used in
Investing Activities . . . . . . . $ (203,679) $ (346,149)
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<PAGE>
PART I, Item 1 (Continued)
For Nine Months
Ended September 30,
1995 1994
Cash Flows From Financing Activities
Net (Decrease) Increase in Noninterest-
bearing Deposits . . . . . . . . . . $ (37,863) $ 27,862
Net Increase in Interest-bearing
Deposits . . . . . . . . . . . . . . 247,540 (110,369)
Net (Decrease)Increase in Short-term
Borrowings . . . . . . . . . . . . . (37,856) 493,110
Sale of Common Stock . . . . . . . . . 2,679 2,674
Cash Dividends Paid on Common Stock . (12,610) (12,040)
Net Cash Provided by Financing
Activities . . . . . . . . . $ 161,890 $ 401,237
Net (Decrease)Increase in Cash and Cash
Equivalents . . . . . . . . . . . . . (15,790) 86,042
Cash and Cash Equivalents, Beginning
of Period . . . . . . . . . . . . . . 215,114 194,729
Cash and Cash Equivalents, End of
Period . . . . . . . . . . . . . . . $ 199,324 $ 280,771
</TABLE>
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<PAGE>
PART I, Item 1 (Continued)
CITIZENS BANCORP AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
For the Nine months Ended September 30, 1995
NOTE 1. UNAUDITED FINANCIAL STATEMENTS
The accompanying unaudited, consolidated, financial statements
have been prepared by Citizens Bancorp in accordance with generally
accepted accounting principles, pursuant to the rules and
regulations of the Securities and Exchange Commission. Certain
information and footnote disclosures normally included in financial
statements have been condensed or omitted pursuant to such rules
and regulations, although management believes that the disclosures
are adequate to make the information presented not misleading. In
the opinion of management, all adjustments made to the unaudited
interim financial statements were of a normal recurring nature. It
is suggested that these condensed financial statements be read in
conjunction with the financial statements and the notes thereto
included in the Citizens Bancorp and Subsidiaries' Annual Report to
Stockholders for the year ended December 31, 1994.
NOTE 2. EARNINGS PER SHARE
Earnings per share have been calculated on the basis of the
weighted average number of shares outstanding for the applicable
periods. Weighted average number of shares were 14,992,090 and
14,863,013 for the nine months ended September 30, 1995 and 1994,
respectively.
NOTE 3. SUPPLEMENTAL CASH FLOW INFORMATION
Interest paid during the nine months ended September 30, 1995
and 1994 was approximately $89.8 million and $61.2 million,
respectively. In addition, the Corporation paid income taxes of
approximately $17.1 million and $14.7 million during the nine
months ended September 30, 1995 and 1994, respectively.
In non-cash investing activities, the Corporation transferred
$1.1 million to Real Estate Acquired in Settlement of Loans from
Loans Receivable during the nine months ended September 30, 1995.
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NOTE 4. NEW ACCOUNTING PRONOUNCEMENTS
Citizens Bancorp adopted SFAS No. 114, Accounting by Creditors
for Impairment of a Loan, effective January 1, 1995. This statement
requires the Corporation to measure the value of each impaired loan
based on the present value of its expected future cash flows
discounted at the loan's effective interest rate or, as a practical
expedient, the loans observable market price or the fair value of
the collateral if the loan is collateral dependent. On January 1,
1995, Citizens Bancorp also adopted SFAS No. 118, Accounting by
Creditors for Impairment of a Loan - Income Recognition and
Disclosures. This statement amends SFAS No. 114 to allow creditors
to use existing methods for recognizing interest income on impaired
loans. The adoption of these statements did not have a material
impact on its financial position or results of operations for the
nine months ended September 30, 1995.
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<PAGE <TABLE>
PART I, Item 2 MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
CITIZENS BANCORP AND SUBSIDIARIES
(Dollars In Thousands, Except Per Share Data)
Selected financial information for Citizens Bancorp and
Subsidiaries is listed below:
<CAPTION>
Nine Months Nine months
Ended Ended
September 30, September 30,
1995 1994
<S> <C> <C>
Condensed Income Statement
Interest Income . . . . . . . . . . $ 193,515 $ 158,168
Interest Expense . . . . . . . . . 90,655 60,652
Net Interest Income . . . . . . . . 102,860 97,516
Provision for Loan Losses . . . . . 5,120 4,820
Other Income . . . . . . . . . . . 28,731 26,919
Other Expenses . . . . . . . . . . 83,323 82,665
Net Income . . . . . . . . . . . . 26,827 23,029
Per Share of Common Stock
Net Income . . . . . . . . . . . . $ 1.79 $ 1.55
Dividends Paid . . . . . . . . . . .84 .81
Book Value . . . . . . . . . . . . 21.79 20.32
Other Information
Total Average Assets . . . . . . . $3,766,528 $3,396,408
Total Assets . . . . . . . . . . . 3,883,747 3,693,251
Total Average Stockholders' Equity 317,646 297,548
Ratios
Interest Margin . . . . . . . . . . 3.94% 4.20%
Loans to Deposits . . . . . . . . . 70.92 63.81
Capital to Assets . . . . . . . . . 8.43 8.76
Return on Equity . . . . . . . . . 11.29 10.35
Return on Assets . . . . . . . . . .95 .91
Loans to Assets . . . . . . . . . . 53.69 53.18
Dividends Paid to Net Income . . . 47.00 52.28
Reserve for Loan Losses to Loans . 1.61 1.72
</TABLE>
PAGE
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PART I, Item 2 (Continued)
Results of Operations
Net income for the nine months ended September 30, 1995
increased $3.8 million or 16.5% from the corresponding period in
1994. Earnings per share for the nine months totaled $1.79 which
was $.24 or 15.5% greater than the first nine months of 1994. The
Corporation's return on average equity was 11.3% and 10.4% for the
nine months ended September 30, 1995 and 1994, respectively. The
Corporation's return on average assets was .95% and .91% for the
nine months ended September 30, 1995 and 1994, respectively.
Net Interest Income
Net interest income for the nine months ended September 30,
1995 increased $5.3 million or 5.5% from the corresponding period
in 1994. This increase resulted primarily from the approximately
$386 million in additional outstanding earning assets in the first
nine months of 1995 compared to the first nine months of 1994.
Average earning assets increased due to an additional $216 million
(11.9%) in average loans outstanding and $190 million (14.6%) in
average securities outstandings. Funding for the loan and
securities growth was obtained through a 132.5% growth in short-
term borrowings from the previous year balances.
Net interest margin for the nine months of 1995 was 3.94%, a
decline of 26 basis points from the margin recorded for the nine
months of 1994.
The yield on average earning assets increased 60 basis points,
to 7.38% from 6.78%, between the periods. This increase in yield
should continue in earning assets as the mix of earning assets
shifts to loans from securities.
The cost of interest bearing liabilities increased 90 basis
points, to 3.53% from 2.63%. Interest rates paid on customer
deposits are higher than the previous nine month levels, coupled
with a change in deposit mix, contributed to the increase in
deposit interest.
The extent to which the Corporation is able to maintain its
stable net interest margin is significantly influenced by the
economic environment in its markets and the economic policy of the
Federal Reserve Board, in addition to competitive market conditions
for both loans and deposits. Competitive pressures, especially
with regard to deposit rates, may lead to decreases in net interest
margin in future periods.
PAGE
<PAGE>
In the table below, net interest income is presented on a
"taxable equivalent" basis. The income earned on tax-exempt
assets, such as municipal securities, is adjusted for analytical
purposes to recognize the income tax savings which facilitates
comparison between taxable and tax-exempt assets.
PAGE
<PAGE>
<TABLE>
PART I, Item 2 (Continued)
CITIZENS BANCORP AND SUBSIDIARIES
QUARTERLY AVERAGE CONSOLIDATED STATEMENTS
OF CONDITION AND RATES
<CAPTION>
Nine months - 1995 Nine Months - 1994
Average Average
Balance Interest Rate Balance Interest Rate
(Taxable Equivalent Basis, Dollars In Thousands)
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Loans:
Commercial . . . . . $ 351,879 $ 23,840 9.06% $ 327,429 $18,139 7.41%
Real Estate . . . . 996,504 66,940 8.98 854,426 53,537 8.38
Consumer . . . . . . 673,826 36,302 7.20 624,392 33,192 7.11
Total Loans . . . 2,022,209 127,082 8.40 1,806,247 104,868 7.76
Investment Securities:
Securities Available
for Sale . . . . . 343,585 16,621 6.47 208,008 7,213 4.64
Taxable. . . . . . . 1,124,205 48,127 5.72 1,066,175 43,643 5.47
Non-Taxable. . . . . 29,846 2,592 11.61 33,294 2,812 11.29
Total Securities . 1,497,636 67,340 6.01 1,307,477 53,668 5.50
Fed Funds Sold and
Securities Purchased
Under Resale Agmts __________ 19,906 616 4.14
Total Interest
Earning Assets . 3,519,845 194,422 7.38% 3,133,630 159,152 6.78
Cash . . . . . . . . . 161,929 163,953
Reserve for Loan
Losses . . . . . . . (33,390) (30,346)
Other Assets . . . . . 118,138 129,171
Total Assets $3,766,522 $3,396,408
</TABLE>
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<TABLE>
PART I, Item 2 (Continued)
<CAPTION>
Nine Months - 1995 Nine Months - 1994
Average Average
Balance Interest Rate Balance Interest Rate
(Taxable Equivalent Basis, Dollars In Thousands)
<S> <C> <C> <C> <C> <C> <C>
LIABILITIES AND
STOCKHOLDERS' EQUITY
Deposits:
Savings and Demand . $ 912,751 18,562 2.72 1,004,610 19,913 2.65
Money Market . . . . 430,522 10,876 3.38 518,298 9,992 2.58
Time Certificates . 869,296 35,917 5.52 678,643 23,311 4.59
Total . . . . . . 2,212,569 65,355 3.95 2,201,551 53,216 3.23
Short-term Borrowings 580,802 25,300 5.82 249,833 7,436 3.98
Total Interest-bearing
Liabilities . . . . 2,793,371 90,655 4.34 2,451,384 60,652 3.31
Demand Deposits. . . . 638,810 629,315
Other Liabilities . . 16,695 18,161
Stockholders' Equity . 317,646 297,548
Total Liabilities and
Stockholders' Equity $3,766,522 $3,396,408
Net Interest Income . $103,767 $98,500
Net Interest Yield on
Earning Assets 3.94% 4.20%
</TABLE>
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Provision for Loan Loss and Allowance
The provision for loan losses was $5.1 million for the nine months ended
September 30,1995 compared to $4.8 million for the comparable 1994 period.
Net charge-offs totalled $3.0 million or .15% of average loans versus $2.0
million of .10% of average loans for the comparable nine month periods.
Total charge-offs were $4.0 million for both nine month periods. Real
estate-mortgages comprised $2.5 million and $2.1 million of the total in
1994. Total recoveries were $1.1 million in 1995 of which consumer loans
represented .7 million. Total recoveries were $1.9 million in 1994 of which
commercial loans represented $1.0 million. There are no recommendations by
the regulatory authorities which, if they were to be implemented, would
have a material effect on liquidity, capital resources or operations.
The allowance for loan losses was $34.4 million and $32.0 million at
September 30, 1995 and 1994, respectively. The allowance approximates 1.61%
and 1.72% of total loans outstanding at both September 30, 1995 and 1994,
respectively. The allowance represents coverage of 221.6% and 164.1% of
non-performing loans outstanding at September 30, 1995 and 1994,
respectively. At September 30, 1995 and 1994 there were $15.5 million and
$19.5 million in non-performing loans outstanding.
At September 30, 1995 and 1994 there was $14.5 million and $22.7
million, respectively in other real estate acquired in settlement of loans by
the Corporation.
PAGE
<PAGE>
Non-Performing Assets
Non-performing assets include nonaccrual and restructured
loans, accruing loans past-due 90 days or more, and real estate
acquired in settlement of loans. The table below reflects the
distribution of non-performing assets.
<TABLE>
September 30, December 31,
1995 1994
(Dollars in Thousands)
<S> <C> <C>
Commercial, Financial, and
Agricultural $ 5,337 $ 6,548
Real Estate - Construction 1,382 1,345
Real Estate - Mortgage 8,457 10,954
Consumer 348 234
Total Non-performing loans 15,524 19,081
Real Estate Acquired in Settlement
of Loans 14,486 18,003
Total Non-performing Assets $ 30,010 $ 37,084
Non-performing Loans to Total Loans .73% .99%
Non-performing Assets to Loans
and Real Estate Acquired
in Settlement of Loans 1.40 1.88
Accruing Loans Past Due 90 Days
or More $ 3,006 $ 786
Restructured Loans 15,151 14,166
</TABLE>
Other Income and Expense
Other income for the nine months ended September 30, 1995
increased $1.8 million or 6.7% from the comparable 1994 period.
This increase was due largely to volume growth in Mortgage Banking
Fees and Credit Card Merchant Fees of $602 and $588 thousand,
respectively. There was also a nonrecurring addition to income due
to the sale of deposits resulting from a branch closing of $312
thousand.
Other expenses in total increased $658 thousand or 0.8% for
the nine months ended September 30, 1995 compared to the same
period in 1994. The components of other expenses is as follows:
compensation and employee benefits for the nine months ended
September 30, 1995, increased $2.1 million or 5.2% from the
comparable 1994 period due to normal merit increases. Occupancy
and equipment expense for the first nine months of 1995 increased
$463 thousand or 2.8% over the same period in 1994. This is due to
increased rental expense of $337 thousand, increased depreciation
expense of $400 thousand on additional capital expenditures, and a
decrease of $365 thousand in branch consolidation expense. Other
expense decreased $1.9 million due largely to an FDIC deposit
insurance assessment resulting in a $1.7 million rebate received in
the third quarter of 1995.
<PAGE>
Income Taxes
Federal and state income taxes increased 17.2% for the nine
months ended September 30, 1995 when compared with 1994. This
resulted primarily from higher levels of pre-tax income and
maturities of tax-exempt investments.
The Corporation's effective income tax rate was 37.8% and
37.7% for the nine months ended September 30, 1995 and 1994,
respectively.
Financial Condition
As reflected in the Consolidated Statements of Cash Flows, net
cash provided by operating activities was $26.0 million and $31.0
million for the nine months ended September 30, 1995 and 1994,
respectively.
Purchases of investment securities and growth in loans
outstanding were the Corporation's most significant investing
activities. During the first nine months of 1995, approximately
$33.0 million of securities purchases were consummated in excess of
replacement of maturing securities. Loan demand strengthened in the
nine months ended September 30, 1995 with $91.0 million in net new
loans booked. Deposit growth continued in the first nine months of
1995 with $248 million in interest bearing deposits, offset by an
$37.9 million decrease in non-interest bearing deposits.
Capital Resources
The Federal Reserve Board sets standards for measuring capital
adequacy for U.S. banking organizations. These standards classify
capital into two tiers, referred to as Tier 1 and Tier 2.
At September 30, 1995 and 1994, Citizens Bancorp's Tier I
risk-based capital ratio was 12.7% and 12.6%, respectively, well in
excess of the 4% regulatory requirement. For the same periods, the
total risk-based capital ratio was 14.0% and 13.8%, respectively,
also well in excess of the 8% requirement. The leverage ratio
stood at 8.7% and 8.4% at September 30, 1995 and 1994,
respectively, meeting the 4% ratio test.
At September 30, 1995 and 1994, Citizens Bank of Maryland's
Tier I risk-based capital ratio was 12.6% and 12.8%, respectively.
For the same periods, the total risk-based capital ratio was 13.9%
and 14.1%, respectively. The leverage ratio stood at 8.4% and 8.1%
at September 30, 1995 and 1994, respectively.
At September 30, 1995 and 1994 Citizens Bank of Washington's
Tier I risk-based capital ratio was 13.7% and 13.1%, respectively.
For the same periods, the total risk-based capital ratio was 14.9%
and 14.4%, respectively. The leverage ratio stood at 10.6% and 9.7%
at September 30, 1995 and 1994, respectively. At September 30,
1995 and 1994 Citizens Bank of Virginia's Tier I risk-based capital
ratio was 11.5% and 11.7%, respectively. For the same periods, the
total risk-based capital ratio was 12.7% and 13.0%, respectively.
The leverage ratio stood at 7.6% and 8.6% at September 30, 1995 and
1994, respectively.
<PAGE> <PAGE>
PART II. OTHER INFORMATION
Item 1. Legal Proceedings - None
Item 2. Changes in Securities - None
Item 3. Defaults Upon Senior Securities - None
Item 4. Submission of Matters to a Vote of Security Holders - See
proxy statement filed with the Securities and Exchange
Commission on April 5, 1991.
Item 5. Other Information - None
Item 6. Exhibits and Reports on Form 8-K - None
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.
CITIZENS BANCORP
By
Kaye A. Simmons
Treasurer
Principal Accounting Officer
By
Jean G. Salamone
Secretary
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