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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
June 30, 1996
[ ] 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
Securities Registered Pursuant to Section 12(b) of the Act: None
Securities Registered Pursuant to Section 12(g) of the Act:
Title of each class
Common stock, par value $10 per share
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
The aggregate market value of voting stock held by non affiliates of the
Registrant as of May 15, 1996 was approximately $1,402,180.
There were 114,141 shares of common stock outstanding at May 15, 1996.
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1
<PAGE>
Index Page
Part I. Financial Information
Item 1. Financial statements
Consolidated Balance Sheet as of March 31, 1996 and
December 31, 1995.....................................................3
Consolidated Statement of Income for the Three Months
Ended March 31, 1996 and 1995.........................................4
Consolidated Statement of Changes in Stockholders' Equity for
the Three Months Ended March 31, 1996 and 1995........................5
Consolidated Statement of Cash Flows for the Three Months
Ended March 31, 1996 and 1995.........................................6
Notes to Consolidated Financial Statements............................7
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations.............................................8
Part II. Other Information....................................................12
Signatures....................................................................13
Item 6. Exhibits and reports on Form 8-K.....................................14
2
<PAGE>
CITY NATIONAL BANCSHARES CORPORATION
AND SUBSIDIARY
Consolidated Balance Sheet
March 31, December 31,
Dollars in thousands, except per share data 1996 1995
======== ========
Assets
Cash and due from banks ............................ $ 2,442 $ 3,344
Federal funds sold ................................. 8,900 6,950
Interest bearing deposits with banks ............... 128 321
Investment securities available for sale ........... 30,920 30,609
Investment securities held to maturity
(Market value of $29,738 at March 31,
1996 and $24,434 at December 31,1995) ............ 29,967 24,494
Loans held for sale ................................ 388 555
Loans .............................................. 50,735 44,739
Less: Reserve for possible loan losses ............. 675 650
-------- --------
Net loans .......................................... 50,060 44,089
-------- --------
Premises and equipment ............................. 3,046 2,288
Accrued interest receivable ........................ 910 955
Other real estate owned ............................ 212 212
Other assets ....................................... 417 593
-------- --------
Total assets ....................................... $127,390 $114,410
======== ========
Liabilities and Stockholders' Equity
Deposits:
Demand ...................................... $ 13,771 $ 12,925
Savings ..................................... 42,978 37,019
Time ........................................ 56,019 50,945
------- --------
Total deposits ..................................... 112,768 100,889
Short-term borrowings .............................. 3,527 3,661
Accrued expenses and other liabilities ............. 1,626 1,215
Long-term debt ..................................... 1,749 1,749
------- --------
Total liabilities .................................. 119,670 107,514
Commitments and contingencies
Stockholders' equity
Preferred stock, no par value: Authorized
100,000 shares, 128 shares issued and
outstanding .................................... 727 200
Cmmon stock, par value $10: Authorized
400,000 shares; issued 114,980 shares
in 1996 and 111,980 shares in 1995,
outstanding 114,141 shares in 1996
and 111,141 shares in 1995 ..................... 1,150 1,120
Surplus ........................................ 901 886
Retained earnings .............................. 5,126 4,856
Less:
Net unrealized loss on investment
securities available for sale ............. 159 141
Treasury stock, at cost - 839 shares ........ 25 25
------- --------
Total stockholders' equity ......................... 7,720 6,896
------- --------
Total liabilities and stockholders' equity ......... $127,390 $114,410
======== ========
See accompanying notes to consolidated financial statements
3
<PAGE>
CITY NATIONAL BANCSHARES CORPORATION
AND SUBSIDIARY
Consolidated Statement of Income
Three months ended March 31,
Dollars in thousands, except per share data .............. 1996 1995
======== ========
Interest income
Interest and fees on loans ................................ $ 1,045 $ 751
Interest on Federal funds sold and securities
purchased under agreements to resell .............. 158 156
Interest on other short term investments
Interest on deposits with banks ........................... 2 1
Interest and dividends on investment securities:
Taxable ........................................... 983 802
Tax-exempt ........................................ 29 26
-------- --------
Total interest income ..................................... 2,217 1,736
-------- --------
Interest expense
Interest on deposits ...................................... 725 619
Interest on short-term borrowings ......................... 37 49
Interest on long-term debt ................................ 25 5
-------- --------
Total interest expense .................................... 787 673
-------- --------
Net interest income ....................................... 1,270 1,063
Provision for possible loan losses ........................ 10 122
-------- --------
Net interest income after provision
for possible loan losses ......................... 1,260 941
-------- --------
Other operating income
Service charges on deposit accounts ....................... 143 148
Other income .............................................. 169 365
Net gain on sales of investment securities ................ 10 --
-------- --------
Total other operating income .............................. 322 513
-------- --------
Other operating expenses
Salaries and other employee benefits ...................... 661 589
Occupancy expense ......................................... 64 16
Equipment expense ......................................... 73 49
Other expenses ............................................ 366 327
-------- --------
Total other operating expenses ............................ 1,164 981
-------- --------
Income before income tax expense .......................... 418 473
Income tax expense ........................................ 146 175
-------- --------
Net income ................................................ $ 272 $ 298
======== ========
Net income per share
Primary ................................................... $ 2.37 $ 2.65
Fully diluted ............................................. 2.10 2.36
======== ========
Primary average shares outstanding ........................ 113,501 111,141
Fully diluted average shares outstanding .................. 127,351 124,991
======== ========
See accompanying notes to consolidated financial statements
4
<PAGE>
CITY NATIONAL BANCSHARES CORPORATION
AND SUBSIDIARY
Consolidated Statement of Changes
in Stockholders' Equity
<TABLE>
<CAPTION>
Net Unrealized
Loss on Invest-
ment Securities
Common Preferred Retained Available Treasury
Dollars in thousands, except per share data Stock Surplus Stock Earnings For Sale Stock Total
======= ======= ======= ======= ======= ======= =======
<S> <C> <C> <C> <C> <C> <C> <C>
Balance, December 31, 1994 ........................ $ 1,120 $ 886 -- $ 4,194 $ (587) $ (25) $ 5,588
Net income ........................................ -- -- -- 298 -- -- 298
Net unrealized loss on investment
securities available for sale ................... -- -- -- -- 104 -- 104
Dividends paid on common stock .................... -- -- -- (139) -- -- (139)
------- ------- ------- ------- ------- ------- -------
Balance, March 31, 1995 ........................... $ 1,120 $ 886 -- $ 4,353 $ (483) $ (25) $ 5,851
======= ======= ======= ======= ======= ======= =======
Balance, December 31, 1995 ........................ $ 1,120 $ 886 $ 200 $ 4,856 $ (141) $ (25) $ 6,896
Net income ........................................ -- -- -- 272 -- -- 272
Proceeds from issuance of stock ................... 30 15 527 -- -- -- 572
Change in net unrealized loss on
investment securities available for sale ........ -- -- -- -- (18) -- (18)
Dividends paid on preferred stock ................. -- -- -- (2) -- -- (2)
------- ------- ------- ------- ------- ------- -------
Balance, March 31, 1996 ........................... $ 1,150 $ 901 $ 727 $ 5,126 $ (159) $ (25) $ 7,720
======= ======= ======= ======= ======= ======= =======
See accompanying notes to consolidated financial statements.
</TABLE>
5
<PAGE>
CITY NATIONAL BANCSHARES CORPORATION
AND SUBSIDIARY
Consolidated Statement of Cash Flows
Three Months Ended March 31,
In thousands 1996 1995
==== ====
Operating activities
Net income ........................................... $ 272 $ 298
Adjustments to reconcile net income to
net cash from operating activities:
Depreciation and amortization ...................... 64 30
Provision for possible loan losses ................. 10 122
Amortization of premium, net of discount
accretion on investment securities ............... 12 25
Net gains on calls of investment
securities held to maturity ...................... (10) --
Gains and commissions on loans held for sale ....... (14) (28)
Decrease in accrued interest receivable .............. 45 285
Deferred income tax expense (benefit) ................ 50 (51)
Decrease in other assets ............................. 176 1,158
Increase in accrued expenses and other
liabilities ........................................ 396 191
-------- --------
Net cash provided by operating activities ............ 1,001 2,030
-------- --------
Investing activities
Loans originated for sale ............................ (1,251) (942)
Proceeds from sales of loans held for sale ........... 1,432 1,155
(Increase) decrease in loans ......................... (1,964) 263
Purchase of loans in connection with
branch acquisitions ................................ (4,035) (11,479)
Decrease (increase) in interest bearing
deposits with banks ................................ 193 (93)
Proceeds from maturities of investment
securities available for sale, including
principal payments and calls ....................... 1,684 95
Proceeds from maturities of investment
securities held to maturity, including
principal payments and calls ....................... 3,335 570
Purchases of investment securities available
for sale ........................................... (2,028) (975)
Purchases of investment securities held to
maturity ........................................... (8,812) (5,420)
Purchases of premises and equipment .................. (822) (217)
-------- --------
Net cash used in investing activities ................ (12,268) (17,043)
-------- --------
Financing activities
Deposits assumed in branch acquisition ............... 7,661 --
Increase (decrease) in deposits ...................... 4,218 (3,094)
(Decrease) increase in short-term borrowings ......... (134) 2,161
Proceeds from issuance of common stock ............... 45 --
Proceeds from issuance of preferred stock ............ 527 --
Dividends paid ....................................... (2) (137)
-------- --------
Net cash provided (used) by financing
activities ......................................... 12,315 (1,070)
-------- --------
Net increase (decrease) in cash and
cash equivalents ................................... 1,048 (16,083)
Cash and cash equivalents at beginning of period ..... 10,294 27,131
-------- --------
Cash and cash equivalents at end of period ........... $ 11,342 $ 11,048
======== ========
Cash paid during the year:
Interest ............................................. $ 731 $ 611
Income taxes ......................................... (57) 375
See accompanying notes to consolidated financial statements.
6
<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 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 three
months ended March 31, 1996 are not necessarily indicative of the results that
may be expected for the year ended December 31, 1996.
3. Reclassifications
Certain reclassifications have been made to the 1996 consolidated financial
statements in order to conform to the 1995 presentation.
Management's Discussion and Analysis of Results of Operations and Financial
Condition
General
On March 8, 1996 City National Bank acquired a branch office, assuming deposits
totalling $7.6 million in exchange for $500,000 of CNBC preferred stock. The
branch was acquired for fair market value and continues a trend established in
1994 of selectively expanding into urban areas where CNB believes it may provide
a need for its unique personalized type of service.
Results of operations
Net income for the first quarter of 1996 decreased 15.4% to $272,000 , compared
to $298,000 for the similar 1995 quarter. Returns on average stockholders equity
and average assets were 14.76% and .89% for the 1996 first quarter and 20.82%
and 1.08% for the corresponding 1995 quarter. Related earnings per share on a
fully diluted basis fell to $2.10 from $2.36. The lower earnings resulted
primarily from $198,000 of proceeds received from the Resolution Trust
Corporation ("RTC") in February, 1995 representing earnings on funds allocated
to purchase loans from the RTC, offset in part by a special addition of $115,000
to the provision for possible loan losses.
Net interest income
Net interest income rose 14.5%, from $1,063,000 in the first quarter of 1995 to
$1,270,000 in the first quarter of 1996, as the net interest margin on a tax
equivalent basis increased from 4.28% to 4.42%. A higher level of earning assets
was the primary reason for the increase. Average interest earning assets in the
first quarter of 1996 rose to $116.5 million from $102 million in 1995. $13.6
million of this growth occurred within the loan portfolio. Although internal
loan growth was relatively flat, the increased occurred primarily due to the
acquisition in February, 1995 of $11.5 million in residential mortgages from the
RTC in connection with the acquisition of a branch of a failed saving and loan
association in May, 1994.
At March 31, 1996 loans totalled $51.1 million compared to $44.7 million a year
earlier, due to the purchase of $4 million in residential mortgage loans in
conjunction with the February, 1996 branch acquisition.
Average investments remained relatively unchanged during the first quarter of
1996 compared to a year earlier, while the investment portfolio increased from
$55 million at March 31, 1995 to $60.9 million at March 31, 1996. This growth
occurred primarily in US. Government agency securities , as the Bank purchased
$8.7 million of medium-term callable fixed rate agency securities with various
call dates ranging from one to three years, to mitigate the risk of reinvesting
at possibly lower rates in the event rates decrease and the bonds are called.
Deposits averaged $113.9 million for the first half of 1996 compared to $99.1
million for the 1995 first quarter, an increase of 14.9%. Most of the deposit
growth occurred due to higher levels of municipal Super now and time deposits.
At March 31, 1996 deposits totalled $112.8 million compared to $100.9 million a
year earlier with increases occurring in all deposit categories, due to the
aforementioned March, 1996 branch acquisition, as well as the higher municipal
deposit levels.
Provision and reserve for possible loan losses
7
<PAGE>
Changes in the reserve for possible loan losses are set forth below.
Three Months
Ended March 31,
(Dollars in thousands) ........................................... 1996 1995
---- ----
Balance at beginning of period ................................... $650 $625
Provision (credit) for possible loan losses ...................... 10 122
Recoveries of previous charge-offs ............................... 18 14
---- ----
678 761
Less: Charge-offs ............................................... 3 11
---- ----
Balance at end of period ......................................... $675 $750
==== ====
The higher provision in the first quarter of 1995 resulted from a $115,000
special provision to establish a 1% reserve 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 non
performing 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.
March 31, December 31, March 31,
(Dollars in thousands) 1996 1995 1995
----------------------------------
Reserve for possible loan losses
as a percentage of:
Total loans ............................... 1.32% 1.45% 2.04%
Total nonperforming loans ................. 94.27 74.71 109.33
Total nonperforming assets
(nonperforming loans and (OREO) ......... 72.73 60.07 75.53
Net charge-offs as a percentage of
average loans ........................... .02 1.43 .02
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 non performing
loans past due 90 days or more and accruing.
March 31, December 31 March 31,
(Dollars in thousands) ........................... 1996 1995 1995
---- ---- ----
Nonaccrual loans
Commercial .................................... $ 65 $ 68 $ 20
Installment ................................... 2 2 3
Real estate ................................... 638 800 408
---- ---- ----
Total ............................................ 705 839 431
---- ---- ----
Loans past due 90 days
or more and accruing
Commercial .................................... -- 1 88
Installment ................................... -- -- --
Real estate ................................... 11 30 167
---- ---- ----
Total ............................................ 11 31 255
---- ---- ----
Total nonperforming loans ........................ $716 $870 $686
==== ==== ====
Nonperforming assets are generally well secured by real estate and small
commercial buildings. 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.
The reduction in nonaccrual loans during the first quarter resulted from the
favorable resolution of two real estate loans.
Other operating income
Other operating income, including the results of investment securities
transactions, decreased 37.2%, from $513,000 in the first quarter of 1995 to
$322,000 in the first quarter of 1996, primarily as a result of the
aforementioned $198,000 received from the RTC in 1995.
8
<PAGE>
Other operating expenses
Other operating expenses rose 18.7% in the 1996 first quarter to $1.2 million
from $981,000 in the 1995 first quarter, with higher expenses incurred in
virtually all areas. Salaries and other employee benefits rose 12.1% due to
merit increases, additional staffing costs incurred in connection with the
branch acquisition and higher employee benefit costs.
Occupancy and equipment expenses increased 110.8% in the 1996 first quarter from
a year earlier due to primarily higher depreciation resulting from the completed
renovations of the administrative offices.
Other operating expenses were up 11.9% due to higher marketing costs, offset in
part by lower deposit insurance expense.
Income tax expense
Income tax expense decreased from $175,000 in the first quarter of 1995 to
$146,000 in the 1996 first quarter reflecting the generally lower earnings
level, while income tax expense as a percentage of pretax income decreased from
37% to 34.9% as a result of lower levels of income subject to state income tax.
Short-term interest earning assets
Short-term interest assets averaged $12.7 million for the first quarter of 1996
compared to $11.3 million for the similar 1995 period. This nominal increase
occurred due to the utilization of both deposit and capital growth primarily for
loans.
Investment securities available for sale
Investment securities available for sale remained relatively unchanged at March
31, 1996 from 1995 year-end, while unrealized depreciation in the portfolio rose
to $159,000 from $135,000 at those dates, reflecting the effects of an increase
during the quarter in interest rates.
Investment securities held to maturity
Investment securities held to maturity increased from $24.5 million at 1995
year-end to $30 million at the end of the 1996 first quarter reflecting the
purchase of $8.7 million of fixed-rate medium-term U.S. agency callable
securities. As a result of the aforementioned increase in rates, the unrealized
depreciation in the held to maturity portfolio rose from $60,000 at December 31,
1995 to $229,000 at the end of the 1995 first quarter.
Loans
Loans held for sale decreased from $555,000 at December 31, 1995 to $388,000 at
March, 31, 1996 while loans originated for sale declined from $942,000 during
the 1995 first quarter to $809,000 in the 1996 first quarter. The increase in
loans from $44.7 million at December 31, 1995 to $50.7 million at March 31, 1996
resulted from primarily $4 million in loans purchased in connection with the
branch acquisition. These loans consisted of one-to-four family residential
mortgages, all of which were performing.
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 US.
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
three months to the Corporation 's liquidity came from the deposit assumption,
while the primary use of funds was for investment purchases.
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.
9
<PAGE>
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 assets exceed its
interest-sensitive liabilities or in a liability-sensitive position, whereby its
interest-sensitive liabilities exceed its interest-sensitive assets, depending
on management's judgment as to projected interest rate trends.
One measure of interest rate risk is the interest-sensitvity analysis, which
details the repricing differences for assets and liabilities for given periods.
The primary limitation of this analysis is that it is a static (i.e, as of a
specific point in time) measurement which does not capture risk that varies
nonproportionally with changes in interest rates. Because of this limitation,
the Corporation uses a simulation model as its primary method of measuring
interest rate risk. This model, because of its dynamic nature, forecasts the
effects of different patterns of rate movement and variances in the effects of
rate changes on the Corporations' mix of interest-sensitive assets and
liabilities.
At March 31, 1996, the Corporation had a cumulative one-year gap of a negative
$14.9 million, representing 11.84% of total assets compared to a negative $13.5
million gap at December 31, 1995, which represented 11.74% of total assets.
Utilizing the dynamic simulation model, management believes that this amount
would not result in a significant change in net interest income showed interesr
rates rise or fall up to 300 basis points, which is the maximum change that
management uses to measure the Corporation's exposure to interest rate risk.
Capital
Stockholders' equity amounted to $7.7 million at March 31, 1996 compared to $6.9
million at December 31, 1995. In addition to the increase from first quarter
earnings, the Corporation issued $527,000 of preferred stock and $45,000 of
common stock. Stockholders' equity as a percentage of total assets was 6.06% at
March 31, 1996, while the consolidated leverage ratio was 6.16%, 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 weights 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 March 31, 1996, the Corporation's core capital (Tier 1) and total (Tier 1
plus Tier 2) risked-based capital ratios were 16.90% and 22.05%, 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)
May 14, 1996 __________________________
Edward R. Wright
Senior Vice President and Chief Financial
Officer (Principal Financial and Accounting Officer)
10
EXHIBIT 11. STATEMENT REGARDING COMPUTATION OF PER SHARE EARNINGS
City National Bancshares Corporation
Computation of Earnings Per Common Share on a
Primary & Fully Diluted Basis
In thousands, except per share data
Three Months Ended
March 31,
1996 1995
-------- --------
Net income applicable to
primary common shares .................................. $ 272 $ 298
Interest expense on convertible
subordinated debentures, net of
income tax ............................................. 3 3
Dividends on preferred stock .............................. 6 --
-------- --------
Net income applicable to fully
diluted common shares .................................... $ 263 $ 295
======== ========
Number of average shares
Primary .................................................... 111,141 111,141
-------- --------
Fully diluted:
Average common shares outstanding ........................ 111,141 111,141
Average convertible subordinated
debentures converted to common shares .................. 13,850 13,850
-------- --------
124,991 124,991
======== ========
Net income per share
Primary .................................................... $ 2.37 $ 2.65
Fully diluted .............................................. 2.10 2.36
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 9
<LEGEND>
City National Bancshares Corporation
</LEGEND>
<MULTIPLIER> 1000
<CURRENCY> U.S. DOLLARS
<S> <C> <C>
<PERIOD-TYPE> 3-MOS 3-MOS
<FISCAL-YEAR-END> DEC-31-1996 DEC-31-1995
<PERIOD-END> MAR-31-1996 MAR-31-1995
<CASH> 2442 11048
<INT-BEARING-DEPOSITS> 128 931
<FED-FUNDS-SOLD> 8900 0
<TRADING-ASSETS> 0 0
<INVESTMENTS-HELD-FOR-SALE> 30920 8200
<INVESTMENTS-CARRYING> 29967 51393
<INVESTMENTS-MARKET> 29738 50237
<LOANS> 51123 37069
<ALLOWANCE> 675 750
<TOTAL-ASSETS> 127930 110530
<DEPOSITS> 112768 100847
<SHORT-TERM> 3527 2161
<LIABILITIES-OTHER> 1626 1424
<LONG-TERM> 1749 249
0 0
727 0
<COMMON> 2051 0
<OTHER-SE> 5126 3843
<TOTAL-LIABILITIES-AND-EQUITY> 127390 110530
<INTEREST-LOAN> 1045 751
<INTEREST-INVEST> 1172 984
<INTEREST-OTHER> 0 0
<INTEREST-TOTAL> 2217 1736
<INTEREST-DEPOSIT> 725 619
<INTEREST-EXPENSE> 62 54
<INTEREST-INCOME-NET> 1270 673
<LOAN-LOSSES> 10 0
<SECURITIES-GAINS> 10 0
<EXPENSE-OTHER> 1164 981
<INCOME-PRETAX> 418 473
<INCOME-PRE-EXTRAORDINARY> 418 473
<EXTRAORDINARY> 0 0
<CHANGES> 0 0
<NET-INCOME> 272 298
<EPS-PRIMARY> 2.37 2.68
<EPS-DILUTED> 2.10 2.41
<YIELD-ACTUAL> 6.64 6.96
<LOANS-NON> 655 431
<LOANS-PAST> 161 255
<LOANS-TROUBLED> 0 0
<LOANS-PROBLEM> 45 25
<ALLOWANCE-OPEN> 650 625
<CHARGE-OFFS> 3 11
<RECOVERIES> 18 14
<ALLOWANCE-CLOSE> 675 750
<ALLOWANCE-DOMESTIC> 650 530
<ALLOWANCE-FOREIGN> 0 0
<ALLOWANCE-UNALLOCATED> 25 220
</TABLE>
