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 June 30, 1996 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 July 25, 1996, registrant has 15,130,036 shares of
Common Stock issued.<PAGE>
<PAGE>
INDEX
CITIZENS BANCORP AND SUBSIDIARIES
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements (Unaudited)
Consolidated Statements of Condition - June 30, 1996 and December 31, 1995.
Consolidated Statements of Income - Three months ended June
30, 1996 and 1995. Six months ended June 30, 1996 and 1995.
Consolidated Statements of Changes in Stockholders' Equity - Six months
ended June 30, 1996 and 1995.
Consolidated Statements of Cash Flows - Six months ended
June 30, 1996 and 1995.
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<PAGE>
<PAGE>
<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>
June 30, Dec. 31,
1996 1995
Assets
<S> <C> <C>
Cash and Cash Equivalents . . . . . . . . $ 182,008 $ 199,001
Securities Available for Sale(at fair value,
amortized cost of $596,239 and $468,614,
respectively) 597,464 471,989
Securities Held to Maturity(at amortized cost,
fair value of $978,666 and $1,019,600,
respectively) 988,246 1,019,708
Loans and Leases, net of Unearned Income 2,317,904 2,226,399
Less Allowance for Loan Losses. . . . . 35,876 34,145
Net Loans and Leases . . . . . . . . 2,282,028 2,192,254
Premises and Equipment, Net . . . . . . . 55,119 55,497
Accrued Income and Other Assets . . . . . 74,934 101,238
Total Assets . . . . . . . . . . . . $4,179,799 $4,039,687
</TABLE>
<TABLE>
<CAPTION>
Liabilities
<S> <C> <C>
Deposits:
Noninterest-bearing . . . . . . . . $ 657,978 $ 639,667
Interest-bearing . . . . . . . . . . 2,417,413 2,407,188
Total Deposits . . . . . . . . . . 3,075,391 3,046,855
Short-term Borrowings . . . . . . . . . . 743,610 644,183
Other Liabilities . . . . . . . . . . . . 14,806 14,458
Total Liabilities . . . . . . . . 3,833,807 3,705,496
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;
15,130,036 Shares Issued (1996) and
15,056,981 (1995) . . . . . . . . . . 37,825 37,642
Capital Surplus . . . . . . . . . . . . . 122,057 120,185
Retained Earnings . . . . . . . . . . . . 186,110 176,364
Total Stockholders' Equity . . . . 345,992 334,191 Total Liabilities and
Stockholders' Equity . . . . . . $4,179,799 $ 4,039,687
</TABLE>
<PAGE>
<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 Six Months
Ended June 30, Ended June 30,
1996 1995 1996 1995
<S> <C> <C> <C> <C>
Interest Income
Interest and Fees on Loans
and Leases $46,055 $42,925 $91,122 $83,402
Interest and Dividends on Securities:
Securities Available for Sale 8,179 6,227 15,400 11,272
Securities Held to Maturity 13,820 16,820 28,294 33,702
Interest on Federal Funds Sold
and Securities Purchased
Under Resale Agreements 63 - 116 -
Total Interest Income 68,117 65,972 134,932 128,376
Interest Expense
Interest on Deposits 24,617 22,031 49,820 40,998
Interest on Short-term Borrowings 8,290 9,461 15,886 18,677
Total Interest Expense 32,907 31,492 65,706 59,675
Net Interest Income 35,210 34,480 69,226 68,701
Provision for Loan Losses (1,930) (1,575) (3,860) (3,295)
Net Interest Income After
Provision for Loan Losses 33,280 32,905 65,366 65,406
Other Income
Service Charges on Deposit Accounts 5,329 5,056 10,436 9,915
Other Service Charges and Fees 2,882 1,998 5,783 3,717
Insurance and Brokerage Fees 1,074 757 1,780 1,326
Other 1,726 1,932 3,479 3,647
Total Other Income 11,011 9,743 21,478 18,605
Other Expenses
Compensation and Employee Benefits 15,247 14,193 30,232 28,117
Occupancy and Equipment 5,478 5,532 10,894 11,427
Other 7,559 8,725 14,398 16,551
Total Other Expenses 28,284 28,450 55,524 56,095
Income Before Income Taxes 16,007 14,198 31,320 27,916
Income Taxes 5,861 5,422 11,485 10,538
Net Income $10,146 $ 8,776 $19,835 $17,378
Per Share of Common Stock Net Income $ .67 $ .59 $ 1.31 $ 1.16
</TABLE>
<PAGE><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>
Common Capital Retained
Stock Surplus Earnings Total
<S> <C> <C> <C> <C>
Balance,
December 31, 1994 . . . . . . $ 37,330 $116,939 $152,110 $306,379
Net Income . . . . . . . . 17,378 17,378
Cash Dividends Paid on
Common Stock . . . . . . (8,402) (8,402)
Shares of Common Stock
Sold . . . . . . . . . . 167 1,589 1,756
Net Change in Unrealized
Gain on Securities
Available for Sale 4,352 4,352
Balance,
June 30, 1995 $ 37,497 $118,528 $165,438 $321,463
Balance,
December 31, 1995. . . . . . . $ 37,642 $120,185 $176,364 $334,191
Net Income . . . . . . . . 19,835 19,835
Cash Dividends Paid On
Common Stock . . . . . . (8,765) (8,765)
Shares of Common Stock
Sold . . . . . . . . . . 183 1,872 2,055
Net Change in Unrealized
Gain on Securities
Available for Sale . . (1,324) (1,324)
Balance,
June 30, 1996 . . . . . $ 37,825 $122,057 $186,110 $345,992
</TABLE>
<PAGE><TABLE>
PART I, Item 1 (Continued)
CITIZENS BANCORP AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOW
(Dollars In Thousands)
<CAPTION>
For Six Months
Ended June 30,
1996 1995
<S> <C> <C>
Cash Flows From Operating Activities
Net Income . . . . . . . . . . . . . . $ 19,835 $ 17,378
Adjustments to Reconcile Net Income
to Net Cash Provided by Operating
Activities:
Loans Originated for Sale . . . . (107,662) (36,276)
Loans sold . . . . . . . . . . . . 107,645 26,973
Provision for Loan Losses . . . . 3,860 3,295
Provision for Loss on Real Estate
Acquired in Settlement of Loans 62 759
Depreciation and Amortization. . . . 3,670 3,595
Amortization of Intangible Assets. . 188 725
Net Amortization/Accretion of
Premium/Discount on Securities . 352 472
Increase (Decrease) in Accrued Interest
Receivable and Other Assets . . 25,344 (1,901)
Increase in Other Liabilities . . . 900 1,521
Other . . . . . . . . . . . . . . . (26) (763)
Net Cash Provided by
Operating Activities . . . . $ 54,168 $ 15,778
Cash Flows From Investing Activities
Proceeds from Maturities and Sales of
Investment Securities:
Available for Sale . . . . . . . $ 160,227 $ 57,139
Held to Maturity . . . . . . . . 139,496 76,226
Purchases of Investment Securities:
Available for Sale . . . . . . . (288,020) (178,294)
Held to Maturity . . . . . . . . (108,214) (20,920)
Net Increase in Loans
and Lease Receivables . . . . . (93,606) (89,284)
Purchases of Premises and Equipment (3,301) (2,348)
Proceeds from Sale of Real Estate
Acquired in Settlement of Loans 1,883 5,478
Development Costs of Real Estate
Acquired in Settlement of Loans (913) (1,612)
Other 34 31
Net Cash Used in Investing Activities $(192,414) $ (153,584)
</TABLE>
<PAGE>
<TABLE>
PART I, Item 1 (Continued)
<CAPTION>
For Six Months
Ended June 30,
1996 1995
<S> <C> <C>
Cash Flows From Financing Activities
Net Increase (Decrease) in
Noninterest-bearing Deposits . . . . $ 18,311 $ (8,112)
Net Increase in Interest-bearing
Deposits . . . . . . . . . . . . . 10,225 159,389
Net Increase (Decrease) in Short-term
Borrowings . . . . . . . . . . . . . 99,427 (34,446)
Sale of Common Stock . . . . . . . . . 2,055 1,756
Cash Dividends Paid on Common Stock . (8,765) (8,402)
Net Cash Provided by Financing
Activities . . . . . . . . . $ 121,253 $ 110,185
Net Decrease in Cash and Cash
Equivalents . . . . . . . . . . . . . (16,993) (27,621)
Cash and Cash Equivalents, Beginning
of Period . . . . . . . . . . . . . . 199,001 215,114
Cash and Cash Equivalents, End of
Period . . . . . . . . . . . . . . . $ 182,008 $ 187,493
</TABLE>
<PAGE>
<PAGE>
PART I, Item 1 (Continued)
CITIZENS BANCORP AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
For the Six Months Ended June 30, 1996
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' Form 10-K for the year ended December 31, 1995.
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 was 15,106,035 and 14,975,675 for the six months
ended June 30, 1996 and 1995, respectively.
NOTE 3. SUPPLEMENTAL CASH FLOW INFORMATION
Interest paid during the six months ended June 30, 1996 and 1995 was
approximately $66.6 million and $59.0 million, respectively. In addition,
the Corporation paid income taxes of approximately $10.2 million and $9.8
million during the six months ended June 30, 1996 and 1995, respectively.
In non-cash investing activities, the Corporation transfered $289
thousand from Loans Receivable to Real Estate Acquired in Settlement of Loans
during the six months ended June 30, 1996. For the same period in 1995, $1.1
million was transferred from Loans Receivable to Real Estate Acquired in
Settlement of Loans.
<PAGE>
NOTE 4. NEW ACCOUNTING PRONOUNCEMENTS
Citizens Bancorp adopted SFAS 121, "Accounting for the Impairment of
Long-Lived Assets and for Long-Lived Assets Disposed Of",effective January 1,
1996. This Statement prescribes the accounting for the impairment of long-lived
assets, such as property, plant and equipment, identifiable intangible
assets and goodwill related to those assets. An impairment loss is recorded
when the undiscounted cashflows from the use and eventual disposal of the
asset is less than the carrying value of the asset.
Effective January 1, 1996 Citizens Bancorp also adopted SFAS 122,
"Accounting for Mortgage Servicing Rights". This Statement, among other
items, will require the Corporation to capitalize the fair value of mortgage
servicing rights for loans originated at the time a loan is sold with the
servicing retained by the seller.
In addition, Citizens Bancorp adopted SFAS 123, "Accounting for Stock-Based
Compensation", effective January 1, 1996. This Statement gives the
Corporation the option of either 1) continuing to account for stock options
and other forms of stock compensation under the current accounting rules (APB
No. 25, "Accounting for Stock Issued to Employees") while providing the
disclosures required under SFAS 123 or 2) adopting SFAS 123 accounting for
all stock compensation arrangements. The Corporation continues to account
for stock options under the current accounting rules.
The adoption of these Statements did not have a material impact on the
Corporation's financial condition or results of operations for the six months
ended June 30, 1996.
<PAGE>
<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>
Six Months Six Months
Ended Ended
June 30, June 30,
1996 1995
<S> <C> <C>
Condensed Income Statement
Interest Income . . . . . . . . . . $ 134,932 $ 128,376
Interest Expense . . . . . . . . . 65,706 59,675
Net Interest Income . . . . . . . . 69,226 68,701
Provision for Loan Losses . . . . . 3,860 3,295
Other Income . . . . . . . . . . . 21,478 18,605
Other Expenses . . . . . . . . . . 55,524 56,095
Income before Income Tax . . . . . 31,320 27,916
Applicable Income Taxes . . . . . . 11,485 10,538
Net Income . . . . . . . . . . . . 19,835 17,378
Per Share of Common Stock
Net Income . . . . . . . . . . . . $ 1.31 $ 1.16
Dividends Paid . . . . . . . . . . .58 .56
Book Value . . . . . . . . . . . . 22.87 21.43
Other Information
Total Average Assets . . . . . . . $4,014,100 $3,750,022
Total Assets . . . . . . . . . . . 4,179,799 3,822,450
Total Average
Stockholders' Equity . . . . . . 340,863 314,295
Ratios
Interest Margin . . . . . . . . . . 3.72% 3.99%
Loans to Deposits . . . . . . . . . 74.15 71.17
Capital to Assets . . . . . . . . . 8.49 8.38
Return on Equity . . . . . . . . . 11.70 11.15
Return on Assets . . . . . . . . . .99 .93
Loans to Assets . . . . . . . . . . 56.16 53.10
Dividends Paid to
Net Income . . . . . . . . . . . 45.19 48.35
Allowance for Loan
Losses to Loans . . . . . . . . 1.55 1.62
</TABLE>
<PAGE>
PART I, Item 2 (Continued)
Results of Operations
Net income for the six months ended June 30, 1996 increased
$2.5 million or 14.1% from the corresponding period in 1995.
Earnings per share for the six months totaled $1.31 which was $.15
or 12.9% greater than the first six months of 1995. The
Corporation's returns on average equity were 11.70% and 11.15% for
the six months ended June 30, 1996 and 1995, respectively. The
Corporation's returns on average assets were .99% and .93% for the
six months ended June 30, 1996 and 1995, respectively.
Net Interest Income
Net interest income for the six months ended June 30, 1996
increased $525 thousand or 0.8% from the corresponding period in
1995. This increase resulted primarily from an additional $6.6
million in interest income which was realized from an increase in
earnings assets, offset by a $6.0 million rise in interest expense
due to increasing deposit costs. Average earning assets increased
due to an additional $263 million (13.2%) in average loans
outstanding. Funding for the loan growth was obtained through $307
million (38.5%) growth in time certificate deposits less $49
million (3.6%) in other less outstanding deposit products.
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>
<TABLE>
PART I, Item 2 (Continued)
CITIZENS BANCORP AND SUBSIDIARIES
QUARTERLY AVERAGE CONSOLIDATED STATEMENTS
OF CONDITION AND RATES
<CAPTION>
Six Months - 1996 Six Months - 1995
Average Average
Balance Interest Rate Balance Interest Rate
(Taxable Equivalent Basis, Dollars In Thousands)
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Loans:
Commercial . . . . . $ 386,140 $16,457 8.57% $ 357,159 $16,019 9.04%
Real Estate . . . . 1,120,433 47,346 8.50 977,442 44,044 9.09
Consumer . . . . . . 747,795 27,319 7.35 656,641 23,339 7.17
Total Loans . . . 2,254,368 91,122 8.13 1,991,242 83,402 8.45
Securities:
Available for Sale . 529,863 15,400 5.85 332,521 11,272 6.84
Held to Maturity. . . 952,623 27,273 5.76 1,147,341 32,560 5.72
Tax-exempt
Held to Maturity . 27,763 1,570 11.37 30,710 1,757 11.54
Total Investment
Securities . . . . 1,510,249 44,243 5.89 1,510,572 45,589 6.09
Fed Funds Sold &
Securities Purchased
Under Resale
Agreements 4,555 116 5.12 - - -
Total Interest
Earning Assets . 3,769,172 $135,481 7.23% 3,501,814 128,991 7.43%
Cash . . . . . . . . . 159,463 161,570
Allowance for Loan
Losses . . . . . . . (35,225) (33,155)
Other Assets . . . . . 120,690 119,793
Total Assets $4,014,100 $3,750,022
</TABLE>
<PAGE>
<TABLE>
PART I, Item 2 (Continued)
<CAPTION>
Six Months - 1996 Six Months - 1995
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 . $ 914,955 $12,232 2.69% $ 922,711 $12,449 2.72%
Money Market . . . . 398,402 6,942 3.50 439,630 7,239 3.32
Time Certificates . 1,106,029 30,646 5.57 798,793 21,310 5.38
Total . . . . . . 2,419,386 49,820 4.14 2,161,134 40,998 3.83
Short-term Borrowings 613,856 15,886 5.20 621,108 18,677 6.06
Total Interest-bearing
Liabilities . . . . 3,033,242 65,706 4.36 2,782,242 59,675 4.32
Noninterest-bearing
Deposits . . . . . . 620,909 636,906
Other Liabilities . . 19,086 16,587
Stockholders' Equity . 340,863 314,287
Total Liabilities and
Stockholders' Equity $4,014,100 $3,750,022
Net Interest Income . $69,775 $69,316
Net Interest Margin . 3.72% 3.99%
</TABLE>
<PAGE>
PART I, Item 2 (Continued)
Provision for Loan Losses and Allowance
The provision for loan losses was $ 3.9 million for the six
months ended June 30, 1996 compared to $3.3 million for the
comparable 1995 period. Charge-offs and recoveries for each six
month periods are listed below.
<TABLE>
<CAPTION>
6 Mos. 6 Mos.
1996 1995
(Dollars in Thousands)
<S> <C> <C>
Charge-offs:
Real Estate-Mortgage $1,681 $ 883
Commercial 402 71
Consumer 904 477
Total Charge-offs 2,987 1,431
Recoveries:
Real Estate-Mortgage 11 1
Commercial 378 309
Consumer 468 176
Total Recoveries 857 486
Net Charge-offs $2,130 $945
</TABLE>
The allowance for loan losses was $35.9 million and $33.2
million at June 30, 1996 and 1995, respectively. The allowance
approximates 1.55% and 1.62% of total loans outstanding at both
June 30, 1996 and 1995, respectively. The allowance represents
coverage of 257.6% and 187.1% of non-performing loans outstanding
at June 30, 1996 and 1995, respectively. At June 30, 1996 and
December 31, 1995 there was $13.9 million and $17.7 million in non-performing
loans outstanding.
At June 30, 1996 and December 31, 1995 there was $20.4 million
and $15.2 million, respectively in real estate acquired in
settlement of loans owned 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>
<CAPTION>
June 30, December 31,
1996 1995
(Dollars in Thousands)
<S> <C> <C>
Commercial, Financial, and
Agricultural $ 5,798 $ 5,015
Real Estate - Construction 1,003 1,384
Real Estate - Mortgage 6,959 7,421
Consumer 169 458
Total Non-performing loans 13,929 14,278
Real Estate Acquired in Settlement
of Loans 20,357 21,399
Total Non-performing Assets $34,286 $ 35,677
Non-performing Loans to Total Loans .60% .64%
Non-performing Assets to Loans
and Real Estate Acquired
in Settlement of Loans 1.47 1.59
Accruing Loans past Due 90 Days
or More $ 1,454 $ 5,303
Restructured Loans 11,201 13,227
</TABLE>
Other Income and Expense
Other income for the six months ended June 30, 1996 increased
$2.9 million or 15.4% from the comparable 1995 period. Included in
the June 30, 1996 results was the accrual of $298 thousand in
merchant discount income pertaining to the Corporation's credit
card services. Also included were fees associated with official
check outsourcing income of $247 thousand. Revenues from the
mortgage bank subsidiary increased $1.2 million for the six months
ended June 30, 1996 compared to the same period in 1995. This
increase was attributable to lower interest rates in 1996 which
stimulated the refinancing market volume.
<PAGE>
PART I, Item 2 (Continued)
Other expenses decreased $591 thousand or 1.2% for the six
months ended June 30, 1996 compared to the same period in 1995.
Included in the June 30, 1996 results were compensation cost
increases of $2.2 million as a result of normal merit increases and
hiring of new staff. Net occupancy expenses decreased $533
thousand for the period ended June 30, 1996 compared to the same
period in 1995, due to branch closings and reconfigurations which
were incurred throughout 1995. Also included was an increase in
marketing expenses of $781 thousand and a decrease in FDIC premium
assessments of $3.0 million for the period ended June 30, 1996 as
compared to the same period in 1995.
Income Taxes
Federal and state income taxes increased 9.0% for the six
months ended June 30, 1996 when compared with 1995. This resulted
primarily from higher levels of pre-tax income.
The Corporation's effective income tax rates were 36.7% and
37.7% for the six months ended June 30, 1996 and 1995,
respectively.
Financial Condition
As reflected in the Consolidated Statements of Cash Flows, net
cash provided by operating activities was $54.2 million and $15.8
million for the six months ended June 30, 1996 and 1995,
respectively.
Purchases of investment securities and growth in loans
outstanding were the Corporation's most significant investing
activities. During the first six months of 1996, approximately
$96.3 million of securities purchases were consummated in excess of
replacement of maturing securities. Loan demand continued in the
six months ended June 30, 1996 with $93.6 million in net new loans
booked. Deposit growth in the first six months of 1996 stemmed
from a $10.2 million increase in interest bearing deposits and an
increase in non-interest bearing deposits of $18.3 million.
PAGE
<PAGE>
PART I, Item 2 (Continued)
Capital Resources
Dividends for the two quarters ended June 30, 1996 increased
to $.29 compared to $.28 paid in dividends for all four quarters of
1995.
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 June 30, 1996 and 1995, Citizens Bancorp's Tier I risk-based capital
ratio was 12.1% and 12.9%, respectively, well in
excess of the 4% regulatory requirement. For the same periods, the
total risk-based capital ratio was 13.3% and 14.1%, respectively,
also well in excess of the 8% requirement. The leverage ratio
stood at 8.5% and 8.5% at June 30, 1996 and 1995, respectively,
meeting the 4% ratio test.
At June 30, 1996 and 1995, Citizens Bank of Maryland's Tier I
risk-based capital ratio was 11.6% and 12.8%, respectively. For
the same periods, the total risk-based capital ratio was 12.8% and
14.1%, respectively. The leverage ratio stood at 8.1% and 8.2% at
June 30, 1996 and 1995, respectively.
At June 30, 1996 and 1995 Citizens Bank of Washington's Tier
I risk-based capital ratio was 13.8% and 14.6%, respectively. For
the same periods, the total risk-based capital ratio was 15.1% and
15.9%, respectively. The leverage ratio stood at 10.6% and 11.9% at
June 30, 1996 and 1995, 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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