QUARTERLY REPORT UNDER SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
-------------
[X] Quarterly Report Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934 For the period
ended June 30, 1996
or
[ ] Transition Report Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
For the transition period from _____to _____
------------
Commission file number 2-78658
INTRUST Financial Corporation
(Exact name of registrant as specified in its charter)
Kansas 48-0937376
------ ----------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
105 North Main Street 67201
Box One -----
Wichita, Kansas (Zip Code)
---------------
(Address of principal (316) 383-1111
executive offices) --------------
(Registrant's
telephone number)
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. X Yes No
At August 2, 1996, there were 2,320,074 shares of the registrant's common stock,
par value $5 per share, outstanding.
<PAGE>
Part 1. Financial Information
INTRUST Financial Corporation
Consolidated Condensed Balance Sheets
(Unaudited)
(Dollars in thousands except per share data)
June 30, December 31,
Assets 1996 1995
- --------------------------------------------------------------------------------
Cash and cash equivalents:
Cash and due from banks $ 92,108 $ 102,963
Federal funds sold and securities purchased
under agreements to resell 19,545 112,020
- --------------------------------------------------------------------------------
Total cash and cash equivalents 111,653 214,983
- --------------------------------------------------------------------------------
Investment securities:
Held-to maturity (market value, $350,460 for 1996
and $321,141 for 1995) 350,415 315,430
Available-for-sale, at market 1,773 1,923
Equity, at cost 2,954 2,893
- --------------------------------------------------------------------------------
Total investment securities 355,142 320,246
- --------------------------------------------------------------------------------
Loans, net of unearned discount 1,126,309 1,063,277
Less: Allowance for loan losses 26,125 25,892
- --------------------------------------------------------------------------------
Net loans 1,100,184 1,037,385
- --------------------------------------------------------------------------------
Land, buildings and equipment, net 27,798 28,684
Other assets 72,005 65,686
- --------------------------------------------------------------------------------
Total assets $1,666,782 $1,666,984
- ------------------------------------------------------==========================
Liabilities and Stockholders' Equity
- --------------------------------------------------------------------------------
Deposits $1,339,233 $1,367,141
Short-term borrowings:
Federal funds purchased and securities sold
under agreements to repurchase 127,157 107,775
Other 10,488 10,038
- --------------------------------------------------------------------------------
Total short-term borrowings 137,645 117,813
- --------------------------------------------------------------------------------
Accounts payable and accrued liabilities 17,800 14,703
Notes payable 20,310 20,310
Convertible capital notes 11,794 11,854
- --------------------------------------------------------------------------------
Total liabilities 1,526,782 1,531,821
- --------------------------------------------------------------------------------
Stockholders' equity:
Common stock, $5 par value; 10,000,000 shares
authorized, 2,400,166 shares issued in 1996 and
2,400,000 issued in 1995 12,001 12,000
Capital surplus 12,004 12,000
Retained earnings 120,037 114,235
Treasury stock, at cost (77,092 shares in
1996 and 61,770 shares in 1995) (4,110) (3,156)
Unrealized securities gains, net of tax 68 84
- --------------------------------------------------------------------------------
Total stockholders' equity 140,000 135,163
- --------------------------------------------------------------------------------
Total liabilities and stockholders' equity $1,666,782 $1,666,984
- ------------------------------------------------------==========================
The accompanying notes are an integral part of these consolidated financial
statements.
<PAGE>
INTRUST Financial Corporation
Consolidated Condensed Statements of Income
(Unaudited - Dollars In Thousands Except per Share Data)
Three Months Six Months
Ended June 30, Ended June 30,
-------------- --------------
1996 1995 1996 1995
- --------------------------------------------------------------------------------
Interest income:
Loans $26,727 $26,570 $52,657 $51,099
Investment securities 5,555 4,701 10,731 8,900
Federal funds sold and securities
purchased under agreements to
resell, and other 985 1,030 2,874 2,195
- --------------------------------------------------------------------------------
Total interest income 33,267 32,301 66,262 62,194
- --------------------------------------------------------------------------------
Interest expense:
Deposits 11,733 11,527 23,500 21,930
Federal funds purchased and securities
sold under agreement to repurchase 1,489 1,077 3,148 2,075
Convertible capital notes 263 270 532 540
Other borrowings 431 455 860 1,154
- --------------------------------------------------------------------------------
Total interest expense 13,916 13,329 28,040 25,699
- --------------------------------------------------------------------------------
Net interest income 19,351 18,972 38,222 36,495
Provision for loan losses 5,765 4,180 9,780 6,461
- --------------------------------------------------------------------------------
Net interest income after
provision for loan losses 13,586 14,792 28,442 30,034
- --------------------------------------------------------------------------------
Noninterest income:
Service charges on deposit accounts 2,339 2,362 4,586 4,597
Trust department fees 1,383 1,328 2,779 2,797
Credit card fees 2,502 2,276 5,191 4,931
Other service charges, fees and income 2,088 1,943 4,084 3,823
- --------------------------------------------------------------------------------
Total noninterest income 8,312 7,909 16,640 16,148
- --------------------------------------------------------------------------------
Noninterest expenses:
Salaries and employee benefits 7,728 7,197 15,538 14,707
Net occupancy and equipment expense 2,148 2,036 4,234 4,108
Data processing expense 901 1,080 1,757 2,221
Supplies 528 692 978 1,504
Deposit insurance assessment 103 711 188 1,420
Postage and dispatch 596 617 1,193 1,295
Advertising and promotional activities 796 790 2,056 1,625
Goodwill amortization 399 399 798 798
Other 3,467 3,837 6,726 6,976
- --------------------------------------------------------------------------------
Total noninterest expenses 16,666 17,359 33,468 34,654
- --------------------------------------------------------------------------------
Income before provision for
income taxes 5,232 5,342 11,614 11,528
Provision for income taxes 1,888 2,002 4,413 4,342
- --------------------------------------------------------------------------------
Net income $ 3,344 $ 3,340 $ 7,201 $ 7,186
- ------------------------------------------======================================
Per share data:
Net income - assuming no dilution $1.44 $1.43 $3.09 $3.06
Net income - assuming full dilution $1.29 $1.28 $2.77 $2.74
Cash Dividends $0.35 $0.25 $0.60 $0.50
The accompanying notes are an integral part of these consolidated financial
statements.
<PAGE>
INTRUST Financial Corporation
Consolidated Statements of Cash Flows
(Unaudited)
(in thousands of dollars)
Six Months Ended
June 30,
--------------------
1996 1995
- --------------------------------------------------------------------------------
Cash provided (absorbed) by operating activities:
Net Income $ 7,201 $ 7,186
Adjustments to reconcile net income to net
cash provided by operating activities:
Provision for loan losses 9,780 6,461
Provision for depreciation and amortization 3,492 3,462
Amortization of premium and accretion of discount on
investment securities 122 535
Changes in assets and liabilities:
Loans held for sale (2,538) (1,843)
Prepaid expenses and other assets (6,138) (3,428)
Income taxes (795) (695)
Interest receivable (1,252) (766)
Interest payable 4,000 4,572
Other liabilities (248) (357)
Other (176) (88)
- --------------------------------------------------------------------------------
Net cash provided by operating activities 13,448 15,039
- --------------------------------------------------------------------------------
Cash provided (absorbed) by investing activities:
Purchase of investment securities (100,545) (91,764)
Investment securities matured or called 65,516 73,069
Net (increase) in loans (71,626) (1,216)
Purchases of land, buildings and equipment (1,424) (1,524)
Proceeds from sale of equipment 4 32
Proceeds from sale of other real estate
and repossessions 1,928 1,587
Other (142) (196)
- --------------------------------------------------------------------------------
Net cash absorbed by investing activities (106,289) (20,012)
- --------------------------------------------------------------------------------
Cash provided (absorbed) by financing activities:
Net increase (decrease) in deposits (27,908) 5,980
Net increase in short-term borrowings 19,832 28,167
Retirement of convertible capital notes (60) 0
Cash dividends (1,399) (1,177)
Purchase of treasury stock (954) (1,104)
- --------------------------------------------------------------------------------
Net cash provided (absorbed) by financing activities (10,489) 31,866
- --------------------------------------------------------------------------------
Increase (Decrease) in cash and cash equivalents (103,330) 26,893
Cash and cash equivalents at beginning of period 214,983 114,889
- --------------------------------------------------------------------------------
Cash and cash equivalents at end of period $ 111,653 $141,782
- ----------------------------------------------------------======================
Supplemental disclosures
Interest paid $24,040 $21,330
Income tax paid $5,208 $ 5,037
The accompanying notes are an integral part of these consolidated financial
statements.
<PAGE>
INTRUST Financial Corporation
Notes to Consolidated Financial Statements
(Unaudited)
1. PRINCIPLES OF CONSOLIDATION AND PRESENTATION
The accompanying consolidated financial statements include the accounts of
INTRUST Financial Corporation and subsidiaries. All significant intercompany
accounts and transactions have been eliminated. In the opinion of management,
the consolidated financial statements reflect all normal recurring adjustments
necessary for a fair presentation of the financial position and results of
operations for the periods presented.
The significant accounting policies followed in the preparation of the quarterly
financial statements are the same as those disclosed in the 1995 INTRUST
Financial Corporation Annual Report on Form 10-K. Reference is made to the
"Notes to Consolidated Financial Statements" under Item 8 of the 1995 Form 10-K
for additional disclosure.
2. LOANS
As of August 2, 1996, Paul Seymour, Jr., a director of the Company was indebted
to INTRUST Bank, N.A. in the principal amount of $4,746,595 and $254,197 for
personal and business loans, respectively. Petitions under Chapter 11 of the
United States Bankruptcy Code were filed in December 1990 in the United States
Bankruptcy Court for the District of Kansas by Paul A. Seymour, Jr., an
individual and by Arrowhead Petroleum, Inc., a corporation. Mr. Seymour's
personal bankruptcy was dismissed December 27, 1995. Arrowhead's bankruptcy was
dismissed March 20, 1996. The personal loans of Mr. Seymour are not included in
nonperforming loans since payments are current and the loans are fully
collateralized. The business loans are included in the nonperforming loans total
since interest payments are past due.
3. ALLOWANCE FOR LOAN LOSSES
The following is a summary of the allowance for loan losses for the six months
ended June 30, 1996 and 1995 (in thousands):
1996 1995
------- -------
Balance, January 1 $25,892 $19,886
Additions:
Provision for loan losses 9,780 6,461
------- -------
35,672 26,347
Deductions:
Loans charged off 10,878 5,623
Less recoveries on loans
previously charged off 1,331 1,821
------- -------
Net loan losses 9,547 3,802
------- -------
Balance, June 30 $26,125 $22,545
======= =======
The Company adopted Statement of Financial Accounting Standards ("SFAS") No.
114, "Accounting by Creditors for Impairment of a Loan" and SFAS No. 118
"Accounting by Creditors for Impairment of a Loan - Income Recognition and
Disclosures," as of January 1, 1995. SFAS No. 114 requires that certain impaired
loans be measured based on the present value of expected future cash flows
discounted at the loan's original effective interest rate. As a practical
expedient, impairment may be measured based on the loan's observable market
price or the fair value of the collateral if the loan is collateral dependent.
When the measure of the impaired loan is less than the recorded investment in
the loan, the impairment is recorded through a valuation allowance.
The Company had previously measured the allowance for loan losses using methods
similar to those prescribed in SFAS No. 114. As a result of adopting these
statements, no additional allowance for loan losses was required as of January
1, 1995.
Less than 1% of the Company's total loan portfolio meet the criteria defined in
SFAS Nos. 114 and 118 for classification as an impaired loan. The Company
maintained a valuation allowance of $453,000 at June 30, 1996 related to loans
considered impaired. Interest income on this classification of loans has been
recorded by the Company in a manner consistent with its income recognition
policies on other loans. Such amount of interest income is not material to the
Company's financial statements.
4. EARNINGS PER SHARE CALCULATIONS
Net income per share, assuming no dilution, is computed based upon the weighted
average number of shares outstanding plus average incremental shares of stock
outstanding from the assumed exercise of stock options. Net income per share,
assuming full dilution, is computed based upon the additional assumption that
the 9% convertible subordinated capital notes had been converted into common
stock as of the beginning of each respective period presented with related
adjustments to interest and income tax expense. The weighted average number of
shares outstanding for the three months ended June 30, 1996 and 1995 were
2,324,389 and 2,343,472 respectively. The weighted average number of shares
outstanding for the six months ended June 30, 1996 and 1995 were 2,328,369 and
2,347,959 respectively.
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
Unaudited consolidated net income of INTRUST Financial Corporation for the six
months ended June 30, 1996 was $7,201,000, essentially unchanged from the same
period of the prior year. An increased level of charge-offs in the Company's
credit card portfolio has resulted in the Company recording a provision for loan
losses of $9,780,000, which is 51.4% higher than the provision recognized during
the comparable period of 1995.
NET INTEREST INCOME. Second quarter net interest income amounts have increased
$379,000, or 2.0% over the comparable 1995 period, and increased 2.5% over
comparable first quarter amounts. The year-over-year change is principally
volume related, as 1996 average interest-earning assets have increased 11.1%
over 1995 levels. As discussed in previous filings, the Company's acquisition of
the First National Bank of Ottawa in December, 1995 accounted for a portion of
the change in average interest-earning assets, but the Company has also
experienced moderate growth in non-credit card loan demand in 1996. The
quarterly change in net interest income in 1996 is not volume related, as
average interest earning assets have not changed significantly. The loan demand
experienced by the Company has resulted in a shift in composition of interest
earning assets, with a resulting modest increase in net interest income.
The Company's interest spread increased during the second quarter. Yields on
average interest-earning assets have increased ten basis points over first
quarter 1996 levels, while the funding costs of interest-bearing liabilities
have decreased six basis points. As previously mentioned, the Company has
experienced growth in loan demand in 1996, and particularly in the second
quarter. Average total loans have increased approximately $49 million from first
quarter levels. The increased loan demand has resulted in the Company shifting
assets out of relatively lower yielding Federal Funds into loans. Loans were
71.2% of average interest earning assets during the second quarter, as compared
to 67.9% in the first quarter. The Company's ratio of noninterest-bearing to
total deposits remained at 19.7%. Although a modest decline was experienced in
the cost of funds in the second quarter, the Company believes increasing
competitive pressure in its local markets will result, absent some unforeseen
movement by the Federal Reserve Bank, in additional interest margin compression
during the remainder of the year.
Loans, as a percentage of deposits, were 84.1%,77% and 77.8%, respectively at
June 30, 1996, March 31, 1996 and December 31, 1995.
PROVISION FOR LOAN LOSSES. The provision for loan losses for the three month
period ended June 30, 1996 was $5,765,000, compared to $4,015,000 in the first
quarter of 1996 and $4,180,000 in the comparable period of 1995. As noted in
previous filings, the Company's loan loss provision has been impacted by losses
arising from national credit card solicitation programs entered into in 1993 and
1994. Losses on these accounts have significantly exceeded the Company's
previous experience in credit card lending. Net credit card charge-offs during
the second quarter of 1996 totaled $4,448,000 as compared to first quarter net
charge-offs of $4,100,000 and 1995 second quarter losses of $2,563,000. The
Company believes its net credit card charge-offs will continue to run above
historical averages through the remainder of 1996, and believes that its 1996
provision for loan losses will be comparable to that recognized in 1995.
SUMMARY OF LOAN LOSS EXPERIENCE
- --------------------------------------------------------------------------------
June 30,
1996 1995
- --------------------------------------------------------------------------------
Amount of loans at period-end $1,126,309 $1,055,397
- ---------------------------------------------------=============================
YTD Average loans outstanding $1,073,659 $1,035,631
- ---------------------------------------------------=============================
Beginning balance of allowance for loan losses $25,892 $19,886
Loans charged-off
Commercial, Financial and Agricultural 940 121
Real Estate-Mortgage 16 139
Credit Card 9,106 4,954
Installment 816 409
- --------------------------------------------------------------------------------
Total loans charged off 10,878 5,623
- --------------------------------------------------------------------------------
Recoveries on charge-offs
Commercial, Financial and Agricultural 583 988
Real Estate-Mortgage 18 22
Credit Card 558 558
Installment 172 253
- --------------------------------------------------------------------------------
Total recoveries 1,331 1,821
- --------------------------------------------------------------------------------
Net loans charged off 9,547 3,802
Provision charged to expense 9,780 6,461
- --------------------------------------------------------------------------------
Ending balance of allowance for loan losses $26,125 $22,545
- ---------------------------------------------------=============================
Net charge-offs/average loans 0.89% 0.37%
- ---------------------------------------------------=============================
Allowance for loan losses/loans at period-end 2.32% 2.14%
- ---------------------------------------------------=============================
The accompanying table summarizes, by type, the Company's outstanding loans.
Installment loans are principally comprised of loans secured by automobiles.
June 30, 1996 December 31, 1995
- --------------------------------------------------------------------------------
Percent Percent
Amount of Total Amount of Total
- --------------------------------------------------------------------------------
Commercial, Financial and Agricultural $ 432,072 38.3% $ 416,428 39.2%
Real Estate-Construction 26,991 2.4 25,491 2.4
Real Estate-Mortgage 220,742 19.6 189,375 17.8
Installment, excluding credit card 280,311 24.9 259,047 24.3
Credit card 166,427 14.8 173,270 16.3
- --------------------------------------------------------------------------------
Total $1,126,543 100.0% $1,063,611 100.0%
- -----------------------------------------=======================================
Loans considered risk elements, as presented in the following table, totaled
.92% of total loans at June 30, 1996 compared to .88% at December 31, 1995.
During 1995, the Company substantially increased its allowance for loan losses,
in recognition of the increasing level of credit card charge-offs. The Company
has maintained this posture through 1996. While the Company expects the rate of
increase in credit card charge-offs to moderate, it is expected that charge-offs
will continue at historically high levels through the remainder of the year. As
a result, the Company's allowance for loan losses at June 30, 1996 was
little-changed from December 31, 1995. The allowance for loan losses at June 30,
1996 was 2.3% of total loans and was 2.4% at December 31, 1995. This nominal
decline in the ratio of the allowance to total loans results from the change in
composition of the Company's total loan portfolio. Credit card loans comprised
14.8% of total loans at June 30, 1996, whereas such loans represented 16.3% of
total loans at December 31, 1995. Management will continue to actively review
the activity in its loan portfolio to ensure that the provision for loan losses
and resultant allowance for loan losses remain adequate to appropriately address
the credit risk existing in the portfolio.
June 30, December 31,
1996 1995
- --------------------------------------------------------------------------------
Loan Categories
Nonaccrual Loans $5,764 $3,988
Past Due 90 days or more 4,544 5,383
Restructured Loans 0 0
- --------------------------------------------------------------------------------
Total $10,308 $9,371
- -----------------------------------------------=================================
LIQUIDITY AND CAPITAL RESOURCES. Consolidated liquidity remained strong at June
30, 1996. The average maturity of United States government and agency securities
in the investment portfolio was 1 year and 10 months, and the average maturity
of municipal securities was 4 years and 5 months.
The Company has thoroughly reviewed its investment security portfolio and has
determined that at June 30, 1996, it has the ability and intent to hold all
securities in the portfolio that have been classified as held-to-maturity. The
Company believes the regularly scheduled maturities of those securities
presently held in its investment portfolio, along with other funding
alternatives, such as the securitization of credit card receivables, provide
sufficient liquidity to meet depositors' needs and make available lendable funds
within its service area.
The Company's capital position substantially exceeds regulatory capital
requirements. The Company must maintain a minimum ratio of total capital to
risk-weighted assets of 8%, of which at least 4% must qualify as Tier 1 capital.
At June 30, 1996, the Company's total capital to risk-weighted assets ratio was
10.69% and its Tier 1 capital to risk-weighted assets ratio was 8.88%.
In addition to the aforementioned regulatory requirements, each of the Company's
subsidiary banks met all capital ratios required at the individual bank level.
OTHER INCOME AND OTHER EXPENSE. Noninterest income in the second quarter
increased $403,000 or 5.1% over prior year levels, but was essentially unchanged
from amounts recognized in the first quarter. Service charges on deposit
accounts recognized during the quarter ended June 30, 1996 have not changed
appreciably from the same period of 1995, as there have not been significant
year-over-year changes in the volumes of those accounts that typically carry a
service charge. Trust assets under management have not grown substantially,
resulting in no growth in trust fee revenue. Credit card fees in the second
quarter declined from first quarter levels as cash collections on the Company's
securitized credit card portfolios slowed modestly and charge-offs increased,
resulting in a decline in excess servicing fee revenue. .
Noninterest expenses have declined 4.0%, or $693,000 from the comparable second
quarter prior year period. Reductions in data processing expense, supplies costs
and deposit insurance assessment exceeded increases in salaries and employee
benefits and advertising and promotional activities.
Second quarter employment expenses increased $531,000, or 7.4%, over those of
the comparable period in 1995, and have increased $831,000 during the first half
of 1996 when compared to 1995. Approximately 93% of the $831,000 total increase
relates to staffing costs at new locations, or to staffing costs incurred as a
result of establishing new business activities. At June 30, 1996 the Company had
874 full-time equivalent employees, compared to 890 at June 30, 1995.
Occupancy and equipment expenses did not change significantly from levels
recognized during the corresponding period of 1995. As noted in previous
filings, the decline in the Company's data processing expense is attributable to
its conversion to another data processor and certain technology investments made
in 1994 and 1995.
During the second quarter of 1996, the Company paid $103,000 in deposit
insurance assessments, compared to $711,000 in 1995. Through the first six
months of 1996, deposit insurance costs have declined $1,232,000 from 1995
levels. The reduction in these costs has played a significant role in the
overall $1,186,000 decline in total noninterest expense. Future savings in 1996
could be reduced substantially, depending on the outcome of legislative action
on the recapitalization of the Savings Association Insurance Fund (SAIF).
Prospective assessments depend on the Congressional resolution of the funding of
the deposit insurance funds and underlying debt instruments.
Advertising and promotional activities slowed in the second quarter, but it is
anticipated that these costs will remain above 1995 levels for the remainder of
the year. A decline in losses sustained arising from credit card fraud is the
principal reason for the reduction in other noninterest expense.
NEW ACCOUNTING STANDARDS. Statement of Financial Accounting Standards No. 121,
"Accounting for the Impairment of Long-Lived Assets and for Long-Lived Assets to
Be Disposed Of" is effective for fiscal years beginning after December 15, 1995.
The Company adopted this Statement in 1995.
Statement of Financial Accounting Standards No. 122, "Accounting for Mortgage
Servicing Rights" amends Statement of Financial Accounting Standards No. 65,
"Accounting for Certain Mortgage Banking Activities" to eliminate the accounting
distinction between purchased mortgage servicing rights and originated mortgage
servicing rights. The provisions of Statement No. 122 are effective for fiscal
years beginning after December 15, 1995. The adoption of Statement No. 122 did
not have a material impact on its financial statements.
Statement of Financial Accounting Standards No. 123, "Accounting for Stock-based
Compensation", establishes financial accounting and reporting standards for
stock-based employee compensation and is effective for transactions entered into
in fiscal years that begin after December 15, 1995. The Company has elected to
measure compensation costs for its stock option plan using the intrinsic value
based method of accounting prescribed by APB Opinion No. 25, "Accounting for
Stock Issued to Employees".
<PAGE>
PART 2. OTHER INFORMATION
Item 6(b). Exhibits and Reports on Form 8-K.
(a) Exhibits
Exhibit No. Description
27 Financial Data Schedule
(b) There were no reports on Form 8-K filed during the quarter
for which this report is filed.
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
INTRUST Financial Corporation
Date: August 14, 1996 By: /s/ C.Q. Chandler IV
---------------------
C. Q. Chandler IV
President
(Principal Executive Officer)
Date: August 14, 1996 By: /s/ Jay L. Smith
-----------------
Jay L. Smith
Chief Financial Officer
(Principal Accounting Officer)
<PAGE>
EXHIBIT INDEX
Number Description
27 Financial Data Schedule
<TABLE> <S> <C>
<ARTICLE> 9
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> JUN-30-1996
<CASH> 92,108
<INT-BEARING-DEPOSITS> 0
<FED-FUNDS-SOLD> 19,545
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 1,773
<INVESTMENTS-CARRYING> 353,369
<INVESTMENTS-MARKET> 355,187
<LOANS> 1,100,184
<ALLOWANCE> 26,125
<TOTAL-ASSETS> 1,666,782
<DEPOSITS> 1,339,233
<SHORT-TERM> 137,645
<LIABILITIES-OTHER> 17,800
<LONG-TERM> 32,104
0
0
<COMMON> 12,001
<OTHER-SE> 127,999
<TOTAL-LIABILITIES-AND-EQUITY> 1,666,782
<INTEREST-LOAN> 52,657
<INTEREST-INVEST> 10,731
<INTEREST-OTHER> 2,874
<INTEREST-TOTAL> 66,262
<INTEREST-DEPOSIT> 23,500
<INTEREST-EXPENSE> 28,040
<INTEREST-INCOME-NET> 38,222
<LOAN-LOSSES> 9,780
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 33,468
<INCOME-PRETAX> 11,614
<INCOME-PRE-EXTRAORDINARY> 7,201
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 7,201
<EPS-PRIMARY> 3.09
<EPS-DILUTED> 2.77
<YIELD-ACTUAL> 0.00
<LOANS-NON> 5,764
<LOANS-PAST> 4,544
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 25,892
<CHARGE-OFFS> 10,878
<RECOVERIES> 1,331
<ALLOWANCE-CLOSE> 26,125
<ALLOWANCE-DOMESTIC> 26,125
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
