FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
Quarterly Report Under Section 13 or 15(d)
of the Securities Exchange Act of 1934
For Quarter Ended SEPTEMBER 30, 1995
Commission file number 2-79261
DELTA NATIONAL BANCORP
(Exact name of registrant as specified in its charter)
California 94-2839814
(State or other jurisdiction of (IRS Employer Identification No.)
incorporation or organization)
611 North Main Street, Manteca, California 95336-3740
(Address of principal executive offices) (Zip code)
(209) 824-4050
(Registrant's telephone number, including area code)
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 [ ]
APPLICABLE ONLY TO CORPORATE ISSUERS
Indicate the number of shares outstanding of each of the issuer's classes of
common stock as of September 30, 1995:
Common Stock, no par value - 376,782 shares.
<PAGE>
DELTA NATIONAL BANCORP
INDEX
PART I. FINANCIAL INFORMATION
Page no.
Item 1. Financial Statements
Consolidated Balance Sheets -
September 30, 1995 and December 31, 1994 3
Consolidated Statements of Income -
Three months ended September 30, 1995 and 4
Nine months ended September 30, 1995
Three months ended September 30, 1994 and 5
Nine months ended September 30, 1994
Consolidated Statements of Cash Flows -
Nine months ended September 30, 1995 and 1994 6
Notes to Consolidated Financial Statements 8
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 14
PART II. OTHER INFORMATION
Signatures 18
<PAGE>
PART 1 - FINANCIAL INFORMATION
Item 1 - Financial Statements
<TABLE>
DELTA NATIONAL BANCORP
CONSOLIDATED BALANCE SHEETS
( In Thousands)
Unaudited
<CAPTION>
Sept.30, Dec.31,
1995 1994
-------- --------
ASSETS
<S> <C> <C>
Cash and due from banks .............................. $ 4,724 $ 3,349
Federal funds sold ................................... 4,300 2,800
-------- --------
Total cash and cash equivalents .............. 9,024 6,149
Interest bearing deposits in banks ................... 0 0
Investment Securities: note (3)
Securities available for sale .................. 16,362 21,231
Securities held to maturity .................... 18,114 11,797
-------- --------
34,476 33,028
Loans, net: note (4)(5)(6)(8) ....................... 47,535 47,044
Property and equipment ............................... 1,384 902
Interest receivable, other assets and other
real estate owned: note (9) ......................... 1,795 2,066
-------- --------
TOTAL ASSETS ......................................... $ 94,214 $ 89,189
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Non-interest bearing ............................. 13,662 13,215
Interest bearing ................................. 70,727 67,006
-------- --------
Total deposits ............................... 84,389 80,221
Accrued interest/other liabilities ................... 306 221
Stockholders' equity:
Common stock, no par value
Authorized - 5,000,000 shares
Issued and outstanding - 376,782 shares ........ 3,532 3,532
Retained earnings ................................ 6,044 5,598
Net unrealized appreciation (depreciation) on
securities available-for-sale, net of tax of
$40,444 and $152,133 at September 30, 1995
and 1994, respectively ......................... (57) (383)
-------- --------
Total stockholders' equity ................... 9,519 8,747
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY ........... $ 94,214 $ 89,189
======== ========
</TABLE>
The accompanying notes are an integral part of this statement.
<PAGE>
PART 1 - FINANCIAL INFORMATION
Item 1 - Financial Statements
<TABLE>
DELTA NATIONAL BANCORP
CONSOLIDATED STATEMENTS OF INCOME
( In Thousands)
EXCEPT PER SHARE DATA
Unaudited
<CAPTION>
3 MONTHS 9 MONTHS
ENDING ENDING
SEPT. 30, SEPT. 30,
1995 1995
--------- ---------
<S> <C> <C>
Interest income:
Interest and fees on loans ....................... $1,414 $4,164
Interest on investment securities:
Securities available-for-sale .................... 251 802
Securities held-to-maturity ...................... 287 638
Investment securities
Interest-bearing deposits in banks ............... 0 0
Federal funds sold ............................... 88 221
------ ------
Total interest income ........................ 2,040 5,825
Interest expense on deposits ......................... 802 2,239
------ ------
Net interest income .......................... 1,238 3,586
Provision for loan loss .............................. 100 299
------ ------
Net interest income after provision
for possible loan losses .................... 1,138 3,287
Other income
Service charges on deposits ...................... 125 358
Other income ..................................... 57 173
------ ------
182 531
------ ------
Other expenses
Salaries, wages and employee benefits ............ 464 1,349
Occupancy and equipment .......................... 194 509
Other operating expenses ......................... 232 794
------ ------
890 2,652
------ ------
Earning before income taxes .................. 430 1,166
Income taxes ......................................... 176 456
------ ------
NET EARNINGS ................................. $ 254 $ 710
====== ======
Net earnings per share: .............................. $ .67 $ 1.88
====== ======
</TABLE>
The accompanying notes are an integral part of this statement.
<PAGE>
PART 1 - FINANCIAL INFORMATION
Item 1 - Financial Statements
<TABLE>
DELTA NATIONAL BANCORP
CONSOLIDATED STATEMENTS OF INCOME
( In Thousands)
EXCEPT PER SHARE DATA
Unaudited
<CAPTION>
3 MONTHS 9 MONTHS
ENDING ENDING
SEPT. 30, SEPT. 30,
1994 1994
--------- ---------
<S> <C> <C>
Interest income:
Interest and fees on loans .............. $1,279 $3,549
Interest on investment securities:
Securities available-for-sale
Securities held-to-maturity
Investment securities ................... 369 1,046
Interest-bearing deposits in banks ...... 0 0
Federal funds sold ...................... 64 178
------ ------
Total interest income ............... 1,712 4,773
Interest expense on deposits ................ 592 1,679
------ ------
Net interest income ................. 1,120 3,094
Provision for loan loss ..................... 28 283
------ ------
Net interest income after provision
for possible loan losses ........... 1,092 2,811
Other income
Service charges on deposits ............. 117 399
Other income ............................ 50 156
------ ------
167 555
------ ------
Other expenses
Salaries, wages and employee benefits ... 452 1,299
Occupancy and equipment ................. 158 451
Other operating expenses ................ 229 943
------ ------
839 2,693
------ ------
Earning before income taxes ......... 420 673
Income taxes ................................ 158 238
------ ------
NET EARNINGS ........................ $ 262 $ 435
====== ======
Net earnings per share: ..................... $ .70 $ 1.15
====== ======
</TABLE>
The accompanying notes are an integral part of this statement.
<PAGE>
PART 1 - FINANCIAL INFORMATION
Item 1 - Financial Statements
<TABLE>
DELTA NATIONAL BANCORP
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Thousands)
Unaudited
<CAPTION>
9 MONTHS ENDING SEPT. 30,
-------------------------
1995 1994
---- ----
<S> <C> <C>
Increase (decrease) in cash and cash equivalents
Cash flows from operating activities:
Net earnings ....................................... $ 710 $ 435
Adjustments to reconcile net earnings to net
cash provided by operating activities
(Gain)/Loss on sale of assets ................ 16 (3)
(Gain)/Loss on sale of OREO .................. (26) 0
Provision for possible loan losses ........... 299 283
Provision for OREO ........................... 38 258
Provision for depreciation and ............... 345 245
amortization
Decrease (increase) in interest
receivable ................................... (397) 148
and other assets
Increase (decrease) in interest payable
and other liabilities ....................... 47 82
------- -------
Net cash provided by operating activities.. 1,032 1,448
------- -------
Cash flows from investing activities:
Proceeds from maturities of securities
available-for-sale ............................... 5,434
Proceeds from maturities of securities
held-to-maturity ................................. 2,987
Proceeds from sales & maturities of securities ..... 5,818
Purchase of securities available-for-sale .......... 0
Purchase of securities held-to-maturity ............ (9,473)
Purchase of securities ............................. (8,884)
Net (increase) decrease in loans ................... (790) (3,700)
Purchase of property and equipment ................. (693) (66)
Purchase/additions to OREO ......................... (34) 0
Proceeds from sale of property and equipment ....... 10 16
Proceeds from sale of OREO ......................... 497 316
Net (Inc.) dec. Int. Bearing Deposits Other Inst.... 0 5
------- -------
Net cash (used in) provided by
investing activities ...................... (2,062) (6,495)
------- -------
</TABLE>
The accompanying notes are an integral part of this statement.
<PAGE>
PART 1 - FINANCIAL INFORMATION
Item 1 - Financial Statements
<TABLE>
DELTA NATIONAL BANCORP
CONSOLIDATED STATEMENTS OF CASH FLOWS - CONTINUED
(In Thousands)
Unaudited
<CAPTION>
9 MONTHS ENDING SEPT. 30,
-------------------------
1995 1994
---- ----
<S> <C> <C>
Cash flows from financing activities:
Net increase (decrease) in demand deposits,
money market accounts and savings accounts ....... 3,981 154
Net (decrease) increase in time deposits ........... 188 3,395
Cash dividends ..................................... (264) (264)
------- -------
Net cash provided by financing
activities ................................ 3,905 3,285
------- -------
Net increase (decrease) in cash and
cash equivalents ..................................... 2,875 (1,762)
Cash and cash equivalents at beginning of period ..... 6,149 10,281
------- -------
Cash and cash equivalents at end of period ........... $ 9,024 $ 8,519
======== ========
Supplemental disclosures of cash flow information:
Cash paid during the period for:
Interest ..................................... 2,042 1,506
Income Taxes ................................. 736 20
</TABLE>
Noncash investing and financing activities:
The Bank recognized an increase of $556,391 in the fair value of its
available-for-sale securities in the first nine months of 1995 and a decline
of $698,841 in the fair value of its available-for-sale securities for the
year ended December 31, 1994.
The accompanying notes are an integral part of this statement.
<PAGE>
PART 1 - FINANCIAL INFORMATION
Item 1 - Financial Statements
DELTA NATIONAL BANCORP
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 1995
1. Basis
Delta National Bancorp (the Company) was incorporated under the laws of
the State of California on December 21, 1981 for the purpose of serving as a
bank holding company under the Bank Holding Company Act of 1956. The Company's
wholly-owned subsidiary, Delta National Bank (the Bank), operates as a
commercial bank in the cities of Manteca, Riverbank, Denair and Modesto,
California. Headquarters are located at the Manteca Branch at 611 North Main
Street, Manteca, California.
2. Summary of Accounting Policies
The accounting and reporting policies of the Company and the Bank conform
with generally accepted accounting principles and general practice within the
banking industry. The consolidated financial statements of the Company include
the accounts of the Company and the Bank. Significant intercompany transactions
and amounts have been eliminated.
3. Investment Securities
Prior to December 31, 1993, securities were stated at cost adjusted for
amortization of premiums and accretion of discounts, which were recognized as
adjustments to interest income. Gains or losses on disposition were based on the
net proceeds and the adjusted carrying amount of the securities sold, using the
specific identification method. Securities were considered held for investment
purposes since the Bank had the ability and intention to hold such securities to
maturity.
In May 1993, the Financial Accounting Standards Board issued Statement
No. 115, "Accounting for Certain Investments in Debt and Equity Securities". A
significant provision of this statement is the change in accounting and
reporting for certain investments in debt securities and equity securities.
These securities are classified into one of three categories: held-to-maturity,
available-for-sale, or trading. Held-to-maturity securities will continue to be
measured at amortized cost and available-for-sale and trading securities are
measured at fair value. Unrealized holding gains and losses for
available-for-sale securities are excluded from earnings and reported as a net
amount in a separate component of stockholders' equity until realized. The Bank
adopted and implemented SFAS No. 115 as of December 31, 1993.
<PAGE>
DELTA NATIONAL BANCORP
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 1995
3. Investment Securities (continued)
Carrying values and estimated fair values of investment securities for
September 30, 1995 and December 31, 1994 are summarized as follows:
<TABLE>
<CAPTION>
September 30, 1995 December 31, 1994
Amortized Gross Estimated Amortized Gross Estimated
Cost Unrealized Fair Cost Unrealized Fair
Gains Value Gains Value
(Losses) (Losses)
<S> <C> <C> <C> <C> <C> <C>
Available-for-Sale Securities:
U.S. Treasury Securities ................. $ 2,000 $ (3) $ 1,997 $ 1,996 $ (49) $ 1,947
Obligations of other U.S.
government agencies .................... 13,097 (224) 12,873 16,188 (654) 15,534
Obligations of state and
political subdivisions ................. 606 131 737 2,281 78 2,359
Corporate bonds and Other ................ 757 (2) 755 1,420 (29) 1,391
------- ------- ------- ------- ------- -------
TOTAL ...................................... $16,460 $ (98) $16,362 $21,885 $ (654) $21,231
======= ======= ======= ======= ======= =======
Held-to-Maturity Securities:
U.S. Treasury Securities ................. $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
Obligations of other U.S.
government agencies .................... 15,596 42 15,638 7,696 (39) 7,657
Obligations of state and
political subdivisions ................. 1,111 (5) 1,106 1,328 (31) 1,297
Corporate bonds and Other ................ 1,407 (8) 1,399 2,773 (72) 2,701
------- ------- ------- ------- ------- -------
TOTAL ...................................... $18,114 $ 29 $18,143 $11,797 $ (142) $11,655
======= ======= ======= ======= ======= =======
</TABLE>
<PAGE>
DELTA NATIONAL BANCORP
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 1995
4. The following table discloses separately (1) total loans (2) the
allowance for losses and (3) unearned income:
September, 1995 December, 1994
--------------- --------------
Total Loans ............................ $ 48,876,884 $ 48,055,894
Allowance for Loan Loss ................ (907,986) (599,422)
Unearned Discount ...................... (90,738) (167,027)
Deferred Profit on OREO Sales .......... (95,560) 0
Deferred Loan Fees ..................... (247,469) (245,844)
------------- -------------
Loans, net ............................. $ 47,535,131 $ 47,043,601
============= =============
5. The following table discloses the amount of total loans in each of the
following categories for the periods indicated:
September, 1995 December, 1994
--------------- --------------
Commercial Loans ....................... $23,369,523 $20,991,617
Real Estate Construction ............... 7,996,336 7,352,440
Real Estate Mortgage ................... 15,313,720 16,610,145
Installment ............................ 2,197,305 3,101,692
----------- -----------
Total Loans ............................ $48,876,884 $48,055,894
=========== ===========
<PAGE>
DELTA NATIONAL BANCORP
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 1995
6. Impaired Loans:
In May, 1993, the Financial Accounting Standards Board (FASB) issued
Statement No. 114, Accounting by Creditors for Impairment of a Loan (SFAS 114)
which addresses the accounting treatment of certain impaired loans and amends
FASB statements No. 5 and No. 15. SFAS does not address the overall adequacy of
the allowance possible for loan losses. The Bank adopted and implemented SFAS
No. 114 as of January 1, 1995.
A loan is considered impaired when, based on current information and
events, it is probable that a creditor will be unable to collect all amounts
due according to the contractual terms of the loan agreement. The accrual of
interest is discontinued on such loans and no income recognized until all
recorded amounts of interest and principal are recovered in full. Under SFAS
114, impairment is measured based on the present value of the expected future
cash flows discounted at the loans effective interest rate. Alternatively,
impairment may be measured by using the loans observable market price or the
fair value of the collateral if repayment is expected to be provided solely by
the underlying collateral.
The recorded investment in these loans and the valuation allowance for
credit losses related to loan impairment are as follows:
9 Month End
September, 1995
---------------
Principal amount of impaired loans ........................ $1,643,522
Accrued Interest .......................................... 551
Deferred loan costs ....................................... 2,377
----------
1,646,450
Less valuation allowance .................................. 61,638
----------
Total carrying value ...................................... $1,584,812
==========
<PAGE>
DELTA NATIONAL BANCORP
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 1995
6. Impaired Loans (continued):
The activity in the allowance account is as follows:
9 Month End
September, 1995
---------------
Valuation allowance at beginning of period .................... $ 0
Net charges to operations for impairment ...................... 61,638
Direct writedowns ............................................. 0
Recoveries .................................................... 0
-------
Valuation allowance at end of period .......................... $61,638
=======
7. As of September 30, 1995 there were no material loans outstanding made by the
Company to the directors, executive officers, or any principal holders of
equity securities.
8. Changes in the allowance for loan losses are as follows (includes allowance
for loan losses at $846,000 and allowance for impaired loans at $62,000):
9 Month End 9 Month End
September, 1995 September, 1994
--------------- ---------------
Beginning balance .................... $ 599,000 $ 807,000
Charge Offs .......................... (83,000) (561,000)
Recoveries ........................... 93,000 74,000
Allowance ............................ 299,000 283,000
--------- ---------
Ending balance ....................... $ 908,000 $ 603,000
========= =========
<PAGE>
DELTA NATIONAL BANCORP
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 1995
9. Real Estate properties acquired through foreclosure are initially recorded at
fair value at the date of foreclosure establishing a new cost basis. After
foreclosure, valuation are periodically performed and the real estate is
carried at the lower of (1)cost or (2)fair market value minus estimated costs
to sell. Changes in the valuation allowance for OREO are as follows:
9 Month End 9 Month End
September, 1995 September, 1994
--------------- ---------------
Beginning balance ........................... $ 257,644 $ 0
Provision charged to operations ............. 37,923 261,544
Recoveries .................................. (3,900)
--------- ---------
Ending balance .............................. $ 295,567 $ 257,644
========= =========
<PAGE>
PART 1 - FINANCIAL INFORMATION
Item II - Financial Condition and Results of Operations
DELTA NATIONAL BANCORP
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
SEPTEMBER 30, 1995
Results of Operations
The management and the directors of the Company reported net earnings for the
nine month period ending September 30, 1995 at $710,000 compared to net earnings
of $435,000 for the same period in 1994. The increase in earnings in 1995 is
primarily related to income from high quality assets and control of expenses.
Management is pleased with the earnings for the third quarter of 1995.
Consolidated assets increased to $94,214,000 as of September 30, 1995 which
represents a growth rate of 5.71% compared to September, 1994 when assets
totaled $89,123,000. Deposits continue to grow at $84,389,000 for the first nine
months of 1995 compared to $80,377,000 for the first nine months of 1994. This
represents a 4.99% increase. Capital remains very strong at $9,519,000 in 1995
compared to $8,529,000 in 1994.
Net interest income, the largest component of the Company's earnings, represents
the difference between interest earned on loans and other assets and interest
paid on deposits. Net interest income increased 15.90% to $3,586,000 in
September, 1995 compared to $3,094,000 in September, 1994.
Economic conditions have stabilized to some degree over the past year. The bank
has been able to operate within it's niche with notable success. Management,
while pleased with the first nine months of operation for 1995, is aware that
diligence will be required to maintain high quality assets and control of
expenses.
The next few months and years will be critical for the bank to ensure it's
viability well into the future. Interstate banking, non-institutional lenders
and new technology will present challenges to community banks. Delta National
Bank is determined to meet these challenges and to prosper in the long term
environment.
<PAGE>
Liquidity Management
Liquidity refers to the Company's ability to maintain a cash flow adequate to
fund operations and meet obligations on other commitments on a timely and cost
effective basis. The Bank insures the maintenance of a reasonable amount of
liquid funds in order to meet periodic increases in loan demand and deposit
maturities. Investments are made in short term sources including deposits in
correspondent banks, fed funds sold, marketable securities as well as cash on
hand. The Bank's liquidity average ratio for September, 1995 was 27.60% which
management feels is more than adequate. Liquidity is enhanced by operating
profits and increasing deposits. In recent years, core deposits have provided
the Company with a sizable source of relatively stable and low-cost funds.
Asset/Liability Management
The principal objectives of asset/liability management is maintaining an
appropriate balance between interest sensitive assets and interest sensitive
liabilities along with reducing interest rate exposure while providing
liquidity.
Interest-earning assets and interest-bearing liabilities are those which have
yields or rates which are subject to change due to maturity of the instrument or
changes in the rate environment. Gap refers to the difference between the rate
sensitive assets and rate sensitive liabilities. When the amount of rate
sensitive assets exceeds rate sensitive liabilities, a "positive" gap exists and
when the amount of rate sensitive liabilities exceed the amount of rate
sensitive assets, a "negative" gap exists. Major fluctuations in net interest
income and net earnings could occur due to imbalances between rate sensitive
assets and liabilities. Asset/Liability management attempts to protect earnings
by maintaining the proper balance between interest-earning assets and
interest-bearing liabilities in order to minimize fluctuations in the net
interest margin and net earnings in periods of volatile interest rates.
The following table summarizes the interest rate sensitivity of the Company's
assets and liabilities at September 30, 1995. Assets and liabilities are
categorized where applicable, by remaining interest rate maturities rather than
contractual maturities of obligations. For example, investment securities with
variable rates are monitored and reported in the category that represents the
frequency of the rate change.
<PAGE>
<TABLE>
Interest Rate Sensitivity Analysis
<CAPTION>
0 - 30 31 - 90 91 - 180 181 - 365 1 - 5 Over 5
Days Days Days Days Years Years Total
------ ------- -------- --------- ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C>
Interest-bearing bank balances ............... 4,300 0 0 0 0 0 4,300
Investment Securities ........................ 0 17,355 14,215 1,335 781 419 34,520
Loans ........................................ 35,994 651 2,214 3,852 6,461 567 48,404
------ ------ ------ ------ ------ ------ ------
Total Rate Sensitive Assets .................. 40,709 18,006 16,429 3,852 7,242 986 87,224
====== ====== ====== ====== ====== ====== ======
Interest Bearing Demand Deposits ............. 13,919 0 0 0 0 0 13,919
Time Certificates of Deposits ................ 4,609 8,289 4,407 12,615 4,346 0 34,266
Savings Passbook Certificates of
Deposit and Regular Savings ................ 10,824 10,212 0 0 0 0 21,036
------ ------ ------ ------ ------ ------ ------
Total Rate Sensitive Liabilities ............. 29,352 18,501 4,407 12,615 4,346 0 69,221
====== ====== ====== ====== ====== ====== ======
Interval Gaps/RSA-RSL ........................ 11,357 (495) 12,022 (8,763) 2,896 986 18,003
====== ====== ====== ====== ====== ====== ======
</TABLE>
Capital Resources
Capital plays a fundamental and vital role in the operation of the Bank. Capital
adequacy is important to the Bank functions to insure continued financial
strength, protect against unanticipated losses, build confidence in depositors
and shareholders, and enables the Bank to acquire the physical necessities
necessary to render proper Bank services.
The Company is subject to the capital adequacy requirements of various federal
banking agencies, such as the Office of Comptroller of the Currency and the
Federal Deposit Insurance Corporation. At September 30, 1995 the Company
exceeded its capital requirements and expects to remain in compliance with
capital requirements in the future.
Minimum September 1995 December 1994
Risk Based Capital Ratio ........... 8.00% 17.40% 15.47%
Tier I Ratio ....................... 4.00% 16.14% 14.49%
Leverage Ratio ..................... 3.00% 10.07% 9.92%
The Company's total risk-based capital ratio increased to 17.40% compared to
15.92% for September 30, 1994. A review of the Banks risk-based capital level
shows that levels again were substantially higher than regulatory requirements.
The Bank's capital requirement policy shall, at all times, meet or exceed the
requirements set forth by regulatory agencies. In the event that the
minimum regulatory capital requirement is not met through retained earnings and
restricted growth, the Bank shall consider other forms of raising capital.
It is a priority of this institution to continue to meet and exceed all
regulatory capital compliance levels.
<PAGE>
Accounting Changes
The Financial Accounting Standards Board has issued a new standard for
accounting and reporting of certain investments in debt securities and equity
securities. The Bank adopted and implemented SFAS No. 115 as of December 31,
1993.
The Financial Accounting Standards Board has issued a new standard which
addresses the accounting treatment of certain impaired loans. The Bank adopted
and implemented SFAS No. 114 as of January 1, 1995.
PART II - OTHER INFORMATION
Item 1 - Legal Proceedings - None other than in the ordinary course of
business.
Item 2 - Change in securities - None
Item 3 - Defaults Upon Senior Securities - None
Item 4 - Submission of Matters to a Vote of Security Holders - None
Item 5 - Other Information - No Change in Executive Officers.
Item 6 - Exhibits and Reports on Form 8-K - None
<PAGE>
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.
DELTA NATIONAL BANCORP
(Registrant)
DATE: October 23, 1995 /s/ Andrew Rossi
------------------------
Andrew Rossi
President/Chief Executive Officer
Director
(Principal Executive Officer)
DATE: October 23, 1995 /s/ Warren E. Wegge
------------------------
Warren E. Wegge
Executive Vice President
(Principal Financial Officer)
DATE: October 23, 1995 /s/ Toinette Rossi
------------------------
Toinette Rossi
Vice President and Manager
Director
<TABLE> <S> <C>
<ARTICLE> 9
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> SEP-30-1995
<CASH> 4724
<INT-BEARING-DEPOSITS> 0
<FED-FUNDS-SOLD> 4300
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 16362
<INVESTMENTS-CARRYING> 18114
<INVESTMENTS-MARKET> 18143
<LOANS> 48877
<ALLOWANCE> 908
<TOTAL-ASSETS> 93927
<DEPOSITS> 84424
<SHORT-TERM> 0
<LIABILITIES-OTHER> 306
<LONG-TERM> 0
<COMMON> 3532
0
0
<OTHER-SE> 5987
<TOTAL-LIABILITIES-AND-EQUITY> 93927
<INTEREST-LOAN> 4164
<INTEREST-INVEST> 1440
<INTEREST-OTHER> 221
<INTEREST-TOTAL> 5825
<INTEREST-DEPOSIT> 2239
<INTEREST-EXPENSE> 2239
<INTEREST-INCOME-NET> 3586
<LOAN-LOSSES> 299
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 2652
<INCOME-PRETAX> 1166
<INCOME-PRE-EXTRAORDINARY> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 710
<EPS-PRIMARY> 1.88
<EPS-DILUTED> 1.88
<YIELD-ACTUAL> 8.53
<LOANS-NON> 494
<LOANS-PAST> 235
<LOANS-TROUBLED> 1149
<LOANS-PROBLEM> 6958
<ALLOWANCE-OPEN> 599
<CHARGE-OFFS> 83
<RECOVERIES> 93
<ALLOWANCE-CLOSE> 908
<ALLOWANCE-DOMESTIC> 0
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
