SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 10-Q
(Mark One)
[ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 1995
[ ] 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 0-11535
CITY NATIONAL BANCSHARES CORPORATION
(Exact name of registrant as specified in its charter)
New Jersey 22-2434751
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
900 Broad Street, 07102
Newark, New Jersey (Zip Code)
(Address of principal executive offices)
Registrant's telephone number, including area code: (201) 624-0865
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
There were 111,141 shares of common stock outstanding at November 12, 1995.
<PAGE>
<TABLE>
CITY NATIONAL BANCSHARES CORPORATION
AND SUBSIDIARY
<CAPTION>
Consolidated Statement of Income (Unaudited)
Three months Ended Nine months Ended
September 30 September 30
Dollars in thousands,
except per share data 1995 1994 1995 1994
<S> <C> <C> <C> <C>
Interest income
Interest and fees on loans $945 $688 $2,591 $1,731
Interest on Federal funds sold and securities
purchased under agreements to resell 57 162 259 457
Interest on deposits with banks 4 - 6 -
Interest on other short-term investments 61 - 87 -
Interest and dividends on investment securities:
Taxable 815 688 2,470 1,790
Tax-exempt 29 24 84 59
Total interest income 1,911 1,562 5,497 4,037
Interest expense
Interest on deposits 676 504 1,939 1,256
Interest on short-term borrowings 47 39 128 107
Interest on long-term debt 5 5 15 15
Total interest expense 728 548 2,082 1,378
Net interest income 1,183 1,014 3,415 2,659
Provision (credit) for possible loan losses (32) (5) 151 (1,463)
Net interest income after provision (credit)
for possible loan losses 1,151 1,009 3,264 4,122
Other operating income
Service charges on deposit accounts 143 115 463 339
Other income 107 47 621 460
Net (loss) gain on sales of investment securities (1) - (2) 36
Total other operating income 249 162 1,082 835
Other operating expenses
Salaries and other employee benefits 644 522 1,842 1,377
Occupancy expense 63 35 119 90
Equipment expense 65 47 180 146
Other expenses 361 344 1,044 964
Total other operating expenses 1,133 948 3,185 2,577
Income before income tax expense 267 223 1,161 2,380
Income tax expense 90 90 421 723
Net income $177 $133 $740 $1,657
Net income per share
Primary: $1.59 $1.20 $6.66 $14.91
Fully diluted: 1.42 1.06 5.92 13.26
Primary average shares outstanding 111,141 111,141 111,141 111,141
Fully diluted average shares outstanding 124,991 124,991 124,991 124,991
See accompanying notes to consolidated financial statements.
</TABLE>
<PAGE>
[/TABLE]
CITY NATIONAL BANCSHARES CORPORATION
AND SUBSIDIARY
[CAPTION]
Consolidated Balance Sheet (Unaudited)
September 30, December 31,
Dollars in thousands, except per share data 1995 1994
[S] [C] [C]
Assets
Cash and due from banks $ 2,277 $ 3,331
Federal funds sold 10,200 23,800
Interest bearing deposits with banks 293 -
Investment securities available for sale 9,916 7,173
Investment securities held to maturity (Market
value of $450142 at September 30, 1995 and
$44,118 at December 31,1994) 45,426 46,578
Loans held for sale 703 470
Loans 41,537 25,563
Less: Reserve for possible loan losses 625 625
Net loans 40,912 24,938
Premises and equipment 2,201 1,740
Accrued interest receivable 919 1,149
Other real estate owned 307 307
Other assets 289 1,576
Total assets $113,443 $111,062
Liabilities and Stockholders' Equity
Deposits:
Demand $16,079 $16,448
Savings 34,377 39,615
Time 50,761 47,878
Total deposits 101,217 103,941
Short-term borrowings 4,343 -
Accrued expenses and other liabilities 1,223 1,284
Long-term debt 249 249
Total liabilities 107,032 105,474
Commitments and contingencies
Stockholders' equity
Preferred stock, no par value: Authorized 100,000 - -
Common stock, par value $10: Authorized 400,000 shares;
Issued 111,980 shares in 1995 and 1994 outstanding
111,141 shares in 1995 and 1994 1,120 1,120
Surplus 886 886
Retained earnings 4,794 4,194
Less:
Net unrealized loss on investment securities
available for sale 364 587
Treasury stock, at cost - 839 shares 25 25
Total stockholders' equity 6,411 5,588
Total liabilities and stockholders' equity $113,443 $111,062
See accompanying notes to consolidated financial statements.
[/TABLE]
<PAGE>
<TABLE>
CITY NATIONAL BANCSHARES CORPORATION
AND SUBSIDIARY
<CAPTION>
Consolidated Statement of Changes
in Stockholders' Equity (Unaudited)
Net Unrealized
Loss on Invest-
Dollars in thousands, Common Retained ment Securities Treasury
except per share data Stock Surplus Earnings Available for Sale Stock Total
<S> <C> <C> <C> <C> <C> <C>
Balance,
December 31, 1993 $1,120 $886 $2,581 $ - $(25) $4,562
Net income - - 1,657 - - 1,657
Net unrealized gain on
investment securities upon
adoption of a change in
accounting principle - - - 68 - 68
Change in net unrealized gain
on investment securities
available for sale - - - (547) - (547)
Dividends declared
($1.00 per share) - - (114) - - (114)
Balance,
September 30, 1994 $1,120 $886 $4,124 $ (479) $(25) 5,626
Balance,
December 31, 1994 $1,120 $886 $4,194 $ (587) $(25) $5,588
Net income - - 740 - - 740
Change in net
unrealized loss on
investment securities
available for sale - - - 223 - 223
Dividends declared
($1.25 per share) - - (140) - - (140)
Balance,
September 30, 1995 $1,120 $886 $4,794 $ (364) $(25) $6,411
See accompanying notes to consolidated financial statements.
</TABLE>
<PAGE>
<TABLE>
CITY NATIONAL BANCSHARES CORPORATION
AND SUBSIDIARY
<CAPTION>
Consolidated Statement of Cash Flows (Unaudited)
Nine Months Ended September 30,
In thousands 1995 1994
<S> <C> <C>
Operating activities
Net income $740 $1,657
Adjustments to reconcile net income to net cash
from operating activities:
Depreciation and amortization 119 88
Provision (credit) for possible loan losses 151 (1,463)
Amortization of premium, net of discount
accretion on investment securities 135 375
Gain on sales of investment securities
available for sale - (36)
Gains and commissions on loans held for sale (100) (49)
Loans originated for sale (4,000) (5,050)
Proceeds from sales of loans held for sale 3,868 2,993
Decrease (increase) in accrued interest
receivable 230 (324)
Decrease (increase) in other assets 1,139 (407)
(Decrease) increase in accrued expenses
and other liabilities (61) 695
Net cash provided by operating activities 2,221 (1,521)
Investing activities
Increase in interest bearing deposits with banks (293) -
Increase in loans (4,647) (403)
Purchase of loans from the RTC (11,479) -
Proceeds from sales of investment securities
available for sale - 2,383
Proceeds from maturities of investment securities
available for sale, including principal
payments 271 1,999
Proceeds from maturities of investment securities
held to maturity, including principal
payments 6,565 4,760
Purchases of investment securities available
for sale (2,746) (8,947)
Purchases of investment securities held to
maturity (5,445) (15,626)
Purchases of premises and equipment (580) (400)
Net cash used in investing activities (18,354) (16,234)
Financing activities
Deposits acquired in branch acquisition - 25,209
(Decrease) increase in deposits (2,724) 3,820
Increase in short-term borrowings 4,343 -
Dividends paid (140) (114)
Net cash provided by financing activities (1,479) 28,915
Net (decrease) in cash and cash equivalents (14,654) 11,160
Cash and cash equivalents at beginning of
period 27,131 10,845
Cash and cash equivalents at end of period $12,477 $22,005
Cash paid during the year:
Interest $ 1,769 $ 1,109
Income taxes 734 92
Non-cash transfer of loans to other real
estate owned - 212
See accompanying notes to consolidated financial statements.
</TABLE>
<PAGE>
CITY NATIONAL BANCSHARES CORPORATION
Notes to Consolidated Financial Statements (unaudited)
1. Principles of consolidation
The accompanying consolidated financial statements include the accounts of
City National Bancshares Corporation (the "Corporation") and its wholly-owned
subsidiary, City National Bank of New Jersey (the "Bank"). All significant
intercompany accounts and transactions have been eliminated in
consolidation.
2. Basis of presentation
The accompanying unaudited consolidated financial statements have been prepared
in accordance with generally accepted accounting principles for interim
financial information. Accordingly, they do not include all the information
and footnotes required by generally accepted accounting principles for complete
financial statements. In the opinion of management, all adjustments
(consisting of normal recurring accruals) considered necessary for a fair
presentation of the financial statements have been included. Operating results
for the nine months ended September 30, 1995 are not necessarily indicative of
the results that may be expected for the year ended December 31, 1995.
3. Loans
As of January 1, 1995, the Corporation adopted the provisions of Statement of
Financial Accounting Standards No. 114 "Accounting by Creditors for Impairment
of a Loan" and Statement No. 118 "Accounting by Creditors for Impairment of a
Loan - Income Recognition and Disclosure". These statements require that
impaired loans be measured based on the present value of expected future cash
flows discounted at the loan's effective interest rate or, at the loans's
observable market price of the fair value of the collateral if the loan is
collateral dependent.
The Corporation has defined the population of impaired loans to be all
nonaccrual loans of $100,000 or more. Impaired loans of $100,000 or more are
individually assessed to determine that the loan's carrying value does not
exceed the fair value of the underlying collateral or the present value of the
loan's expected future cash flows. Smaller balance homogeneous loans that are
collectively evaluated for impairment such as residential mortgage and
installment loans, are specifically excluded from the impaired loan portfolio.
Where impaired loans are carried at the present value of expected cash flows,
any change in such value is included with the provision for possible loan
losses. There have been no impaired loans recorded during 1995.
4. Reclassifications
Certain reclassifications have been made to the 1994 consolidated financial
statements in order to conform to the 1995 presentation.
<PAGE>
Management's Discussion and Analysis of Results of Operations and Financial
Condition
Results of operations
Net income for the first nine months of 1995 was $740,000 compared to
$1,657,000 for the similar 1994 period, which included the benefits of a $1.6
million recovery of a loan that was charged off in 1989. Returns on average
stockholders' equity and average assets were 16.44% and .90% for the nine-month
period ended September 30, 1995 and 41.84% and 2.24% for the corresponding 1994
period. Related earnings per share on a fully diluted basis fell to $5.92 from
$13.26. After giving effect to the aforementioned nonrecurring recovery,
operating earnings increased from $697,000 to $740,000, reflecting a
substantial improvement in net interest income, which rose 28.4%.
1995 third quarter net income rose 33.1% to $177,000 from $133,000 a year
earlier. Returns on average shareholders' equity and average assets were 1.29%
and .63% for the 1995 third quarter, while the corresponding 1994 returns were
9.43% and .51%. Related fully diluted per share earnings were $1.42 compared
to $1.07. Higher net interest income was also the primary contributor to this
increase.
Net interest income
Net interest income increased $756,000, from $2,659,000 for the first nine
months of 1994 to $3,415,000 for the first nine months of 1995, as the net
interest margin on a tax equivalent basis increased from 3.59% to 4.47%. A
higher level of interest earning assets was the primary reason for the
increase. Average interest earning assets for the first nine months of 1995
rose to $101.9 million from $93.3 million in 1994. Most of the growth
occurred in the loan portfolio, which averaged $27.4 million for the 1994 first
three quarters and $41.4 million for the same 1995 period due primarily to the
purchase in January, 1995 of $11.5 million in residential mortgages from the
Resolution Trust Corporation ("RTC") in connection with the acquisition of a
branch of a failed saving and loan association in May 1994.
Deposits averaged $99.4 million for the first nine months of 1995 compared to
$88.1 million for the 1994 first nine months, an increase of $13.2 million.
Most of the deposit growth occurred in time deposits acquired in the
aforementioned branch acquisition.
In the third quarter of 1995, net interest income grew to $1.2 million from
$1,014,000 in the same 1994 quarter. Higher earning asset levels were also
the primary reason for this improvement.
Provision and reserve for possible loan losses
<PAGE>
Changes in the reserve for possible loan losses are set forth below.
<TABLE>
Nine Months Three Months
Ended September 30, Ended September 30,
(Dollars in thousands) 1995 1994 1995 1994
<S> <C> <C> <C> <C>
Balance at beginning of period $ 625 $ 700 $ 750 $ 700
Provision (credit) for possible
loan losses 151 (1,463) 32 5
Recoveries of previous charge-offs 29 1,513 6 21
805 750 788 726
Less: Charge-offs 180 140 163 116
Balance at end of period $ 625 $ 610 $ 625 $ 610
</TABLE>
The higher provision for the first nine months of 1995 resulted from the 1994
$1.6 million recovery of a loan that had been charged-off in 1989, along with a
special charge in the first quarter of 1995 of $115,000, representing an
addition to the reserve for possible loan losses of 1% of the balance of the
loan portfolio acquired from the RTC.
Management believes that the reserve for possible loan losses is adequate based
on an ongoing evaluation of the loan portfolio. This evaluation includes
consideration of past loan loss experience, the level and composition of
nonperforming loans, collateral adequacy, and general economic conditions,
including the effect of such conditions on particular industries.
While management uses available information to determine the adequacy of the
reserve, future additions may be necessary based on changes in economic
conditions or in subsequently occurring events unforeseen at the time of
evaluation.
<TABLE>
September 30, December 31, September 30,
(Dollars in thousands) 1995 1994 1994
<S> <C> <C> <C>
Reserve for possible loan losses
as a percentage of:
Total loans 1.50% 2.39% 2.20%
Total nonperforming loans 72.92 183.28 45.42
Total nonperforming assets
(nonperforming loans and OREO) 53.69 96.45 39.23
Net charge-offs (recoveries)
as a percentage of
average loans (year-to-date) .04 (5.08) (5.01)
</TABLE>
1994 percentages include the effects of the aforementioned $1.6 million loan
recovery.
Nonperforming loans
Nonperforming loans include loans on which the accrual of interest has been
discontinued or loans which are contractually past due 90 days or more as to
interest or principal payments on which interest income is still being
accrued. Nonaccrual loans include loans where principal or interest payment
are 90 days or more past due. Delinquent interest payments are credited to
income when received. The following table presents the principal amounts of
nonperforming loans past due 90 days or more and accruing.
<PAGE>
<TABLE>
September 30, December 30, September 30,
(Dollars in thousands 1995 1994 1994
<S> <C> <C> <C>
Nonaccrual loans
Commercial $ - $ 31 $ 15
Installment 6 6 1
Real estate 507 285 683
Lease financing - - 5
---- ---- ----
Total 513 312 704
Loans past due 90
or more and accruing
Commercial - - 637
Installment - - 2
Real estate 344 29 -
---- ---- ----
Total 344 29 639
---- ---- ----
Total nonperforming loans $ 857 $ 341 $1,343
</TABLE>
The increase in nonaccrual loans during 1995 resulted from several residential
mortgage delinquencies while loans past due 90 days or more and still accruing
represents one commercial borrower. All the aforementioned nonperforming
assets are well secured by residential real estate and small commercial
buildings. Assuming non-collection, it is the Bank's intent to move
nonperforming loans into other real estate owned ("OREO") as rapidly as
possible and to dispose of all OREO properties at the earliest possible date at
prices considered reasonable under the circumstances.
Other operating income
Other operating income, including the results of investment securities
transactions, rose from $835,000 for the first nine months of 1994 to $1.1
million for the first nine months of 1995. Service charges on deposit accounts
rose 36.6%, from $339,000 to $463,000, due primarily due to a greater volume of
transactions subject to service charges.
Other income grew from $460,000 for the first nine months of 1994 to $621,000
in the similar 1995 period, primarily as a result of $198,000 received from the
RTC in February 1995, representing earnings on funds allocated to purchase
loans from the RTC and an increase in gains and commissions on loan sales of
$87,000. Partially offsetting this income was a reduction of $175,000 from
1994, representing a portion of the aforementioned $1.6 million loan loss
recovery.
In the third quarter of 1995, other operating income rose 36.2% from $162,000 a
year earlier to $249,000 primarily due to increased gains and commissions from
the sale of loans.
Other operating expenses
Other operating expenses rose $608,000, or 23.6% in the 1995 first nine months
due primarily to higher salaries and other employee benefits expense. This
category rose $465,000, or 33.8% from 1994, as the Bank increased its lending
staff in anticipation of expanding its lending efforts, in addition to
obtaining a chief financial officer.
Occupancy and equipment expenses increased $62,000 or 26.3% from the first nine
months of 1994 to the similar 1995 period primarily due to costs associated
with the renovation of the Bank's administrative offices, which was completed
in May 1995.
<PAGE>
In the third quarter of 1995, other operating expenses were up 19.5% from a
year earlier, rising from $948,000 to $1,133,000. Most of this increase
resulted from higher salaries and other employee benefits expense due to the
aforementioned increased staffing. Occupancy and equipment expense for the
quarter rose as a result of the aforementioned renovations.
Income tax expense
Income tax expense decreased from $723,000 for the first nine months of 1994 to
$421,000 in the 1995 first nine months reflecting lower levels of taxable
income, while the effective tax rate in 1995 was 36.3% compared to 30.4% in
1994 due to the reversal in 1994 of reserves on deferred tax assets.
Federal funds sold
Federal funds sold at September 30, 1995 was $10.2 million compared to $23.8
million at 1994 year-end. The reduction reflected the aforementioned loan
purchases made during the first quarter of 1995.
Investment securities available for sale
Investment securities available for sale rose from $7.2 million at December 31,
1994 to $9.9 million at September 30, 1995. Unrealized depreciation in the
portfolio decreased from $587,000 to $364,000 at those dates.
Investment securities held to maturity
Investment securities held to maturity decreased slightly from $46.6 million at
1994 year-end to $45.4 million at September 30, 1995. As a result of a
flattening of the yield curve, the unrealized depreciation in the held to
maturity portfolio fell from $2,460,000 at December 31, 1994 to $284,000 at
September 30, 1995.
Loans
Total loans rose from $26 million at December 31, 1994 to $42.2 million at
September 30, 1995, an increase of $16 million, or 62.3%. $11.5 million of
this amount represented mortgages of 1-4 family homes acquired from the RTC at
a 3% discount of $345,000, of which $115,000 was recorded as other income,
while the $230,000 was deferred and is being accrued into income over the 8
year estimated average life of the loans.
All the loans were performing and had been seasoned for an average of 6 years,
and $3.6 million were fixed rate while $7.9 million had variable rates. The
acquired portfolio had a weighted average coupon of 8.02%, but will yield
slightly more with the discount accretion.
Loans originated for sale fell from $5 million for the first nine months of
1994 to $3.3 million in the similar period, while loans sold decreased from
$4.9 million to $3.8 million due due primarily to the withdrawal from the
secondary market by the Bank's primary conventional loan buyer. Partially
offsetting this decline were sales of Federal Housing Administration ("FHA")
guaranteed loans, which commenced in early 1995.
Deposits
At September 30, 1995, deposits totalled $101.2 million compared to $103.9
million at the end of 1994, with most of the reduction attributable to
nonrecurring U.S. Treasury tax and loan and municipal government deposits at
December 31, 1994.
<PAGE>
Liquidity
The liquidity position of the Corporation is dependent on the successful
management of its assets and liabilities so as to meet the needs of both
deposits and credit customers. Liquidity needs arise principally to
accommodate possible deposit outflows and to meet customers' request for loans.
Such needs can be satisfied by maturing loans and investments, short-term
liquid assets and the ability to raise short-term funds from external sources.
The Corporation depends primarily on deposits as a source of funds and also
provides for a portion of its funding needs through short-term borrowings, such
as Federal funds purchased, securities sold under repurchase agreements and
borrowings under the U.S. Treasury tax and loan note option program.
It is the responsibility of senior management to monitor and oversee all
activities relating to liquidity management and the protection of net interest
income from fluctuations in interest rates.
The major contribution for the first nine months from operating activities to
the Corporation's liquidity came from the $4.0 million proceeds from sales of
loans held for sale, the primary use for operating activities was for loans
originated for sale, totalling $3.9 million.
Most of the cash received from investing activities came from proceeds from
maturities of investment securities held to maturity, which totalled $6.6
million. The primary use for investing activities was the $11.5 million
purchase of RTC loans.
Interest rate sensitivity
The management of interest rate risk is also important to the profitability of
the Corporation. Interest rate risk arises when an earning asset matures or
when its interest rate changes in a time period different from that of a
supporting interest bearing liability, or when its interest rate changes in a
time period different from that of an interest earning asset that it supports.
While the Corporation does not match specific assets and liabilities, total
earnings assets and interest bearing liabilities are grouped to determine the
overall interest rate risk within a number of specific time frames.
Interest sensitivity analysis attempts to measure the responsiveness of net
interest income to changes in interest rate levels. The difference between
interest sensitive assets and interest sensitive liabilities is referred to as
the interest sensitivity gap. At any given point in time, the Corporation may
be in an asset-sensitive position, whereby its interest-sensitive asset exceeds
its interest-sensitive liabilities or in a liability-sensitive position,
whereby its interest-sensitive liabilities exceeds its interest-sensitive
assets, depending on management's judgment as to projected interest rate
trends.
At September 30, 1995, the Corporation had a cumulative one-year gap of a
negative $9.0 million, representing 8.0% of total assets compared to a positive
$9.3 million gap at December 31, 1994. The change occurred primarily as a
result of increases in the fixed rate component of the loan portfolio.
<PAGE>
If the weighted average interest rates in effect at September 30, 1995
increased by 1%, annual net interest income would fall by $90,000 since in a
rising rate environment, interest-sensitive liabilities will reprice faster
than assets. A 1% decrease in the weighted average interest rates would
improve net interest income by $90,000.
The Corporation is presently refining its interest rate sensitivity management
methods to give effect to variations in interest rate changes depending on the
asset and liability mix.
Capital
Stockholders' equity amounted to $6.4 million at September 30, 1995 compared to
$5.6 million at December 31, 1994. Stockholders' equity as a percentage of
total assets was 5.78% at September 30, 1995, while the leverage ratio was also
5.93%, which compares with existing guidelines established by the Federal
Reserve Bank for bank holding companies of 3%.
Risk-based capital ratios are expressed as a percentage of risk-adjusted
assets, and relate capital to the risk factors of a bank's asset base,
including off-balance sheet risk exposures. Various weighings are assigned to
different asset categories as well as off-balance sheet exposures depending on
the risk associated with each. In general, less capital is required for less
risk.
At September 30, 1995, the Corporation's core capital (Tier 1) and total (Tier
1 plus Tier 2) risked-based capital ratios were 17.08% and 18.97%,
respectively.
PART II Other information
Item 6a. Exhibits
(11) Statement re computation of per share earnings
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 hereunto duly authorized.
CITY NATIONAL BANCSHARES CORPORATION
(Registrant)
November 12, 1995 __________________________
Edward R. Wright
Senior Vice President and Chief Financial Officer
(Principal Financial and Accounting Officer)
<PAGE>
EXHIBIT 11. STATEMENT REGARDING COMPUTATION OF PER SHARE EARNINGS
<TABLE>
City National Bancshares Corporation
<CAPTION>
Computation of Earnings Per Common Share on a
Primary & Fully Diluted Basis
In thousands, except per share data
Three Months Ended Nine Months Ended
September 30, September 30,
1995 1994 1995 1994
<S> <C> <C> <C> <C>
Net income applicable to
primary common shares $177 $133 $740 $1,657
Interest expense on convertible
subordinated debentures, net of
income tax 3 3 9 9
----- ----- ----- -----
Net income applicable to fully
diluted common shares $174 $130 $731 $1,648
----- ----- ----- -----
Number of average shares
Primary 111,141 111,141 111,141 111,141
------- ------- ------- -------
Fully diluted:
Average common shares outstanding 111,141 111,141 111,141 111,141
Average convertible subordinated
debentures converted to common
shares 13,850 13,850 13,850 13,850
------- ------- ------- -------
124,991 124,991 124,991 124,991
Net income per share
Primary $1.59 $1.20 $6.66 $14.91
Fully diluted 1.42 1.06 5.92 13.26
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 9
<S> <C> <C>
<PERIOD-TYPE> 9-MOS YEAR
<FISCAL-YEAR-END> DEC-31-1995 DEC-31-1994
<PERIOD-END> SEP-30-1995 DEC-31-1994
<CASH> 2277 3331
<INT-BEARING-DEPOSITS> 293 0
<FED-FUNDS-SOLD> 10200 23800
<TRADING-ASSETS> 0 0
<INVESTMENTS-HELD-FOR-SALE> 9916 7173
<INVESTMENTS-CARRYING> 45426 46578
<INVESTMENTS-MARKET> 45142 44118
<LOANS> 42240 26033
<ALLOWANCE> 625 625
<TOTAL-ASSETS> 113443 111062
<DEPOSITS> 101217 103941
<SHORT-TERM> 4343 0
<LIABILITIES-OTHER> 1223 1284
<LONG-TERM> 249 249
<COMMON> 2006 2006
0 0
0 0
<OTHER-SE> 4405 3582
<TOTAL-LIABILITIES-AND-EQUITY> 113443 111062
<INTEREST-LOAN> 2591 1043
<INTEREST-INVEST> 2906 1432
<INTEREST-OTHER> 0 0
<INTEREST-TOTAL> 5497 2475
<INTEREST-DEPOSIT> 1939 752
<INTEREST-EXPENSE> 143 78
<INTEREST-INCOME-NET> 3415 1645
<LOAN-LOSSES> 151 0
<SECURITIES-GAINS> (2) 36
<EXPENSE-OTHER> 3185 1629
<INCOME-PRETAX> 1161 2157
<INCOME-PRE-EXTRAORDINARY> 1161 2157
<EXTRAORDINARY> 0 0
<CHANGES> 0 0
<NET-INCOME> 740 1524
<EPS-PRIMARY> 6.66 13.71
<EPS-DILUTED> 5.92 12.19
<YIELD-ACTUAL> 7.17 5.40
<LOANS-NON> 513 741
<LOANS-PAST> 344 137
<LOANS-TROUBLED> 0 0
<LOANS-PROBLEM> 0 0
<ALLOWANCE-OPEN> 625 700
<CHARGE-OFFS> 180 24
<RECOVERIES> 29 1492
<ALLOWANCE-CLOSE> 625 625
<ALLOWANCE-DOMESTIC> 531 541
<ALLOWANCE-FOREIGN> [BLANK] 0
<ALLOWANCE-UNALLOCATED> 94 159
</TABLE>
