UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 1995
COMMISSION FILE NO. 0-11786
VILLAGE BANCORP, INC.
- --------------------------------------------------------------------------------
(Exact name of Registrant as specified in its charter)
CONNECTICUT 06-1076844
- ------------------------------- ----------------------------
(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification Number)
25 PROSPECT STREET RIDGEFIELD, CONNECTICUT 06877
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(Address of principal executive offices and Zip Code)
Registrant's telephone number, including area code (203) 438-9551
-----------------------------
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
----- -----
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date.
CLASS OUTSTANDING AT OCTOBER 31, 1995
- ------------------------------ --------------------------------
COMMON STOCK, $3.33 PAR VALUE 946,633 SHARES
<PAGE>
VILLAGE BANCORP, INC.
TABLE OF CONTENTS
PAGE NO.
--------
PART I. FINANCIAL INFORMATION:
ITEM 1. Financial Statements
Condensed Consolidated Balance Sheets
September 30, 1995 and December 31, 1994 (unaudited) ................. 1
Condensed Consolidated Statements of Income For The
Three Months Ended September 30, 1995 and 1994 (unaudited)
Nine Months Ended September 30, 1995 and 1994 (unaudited) ............ 2
Condensed Consolidated Statements of Cash Flows For The
Nine Months Ended September 30, 1995 and 1994 (unaudited) ............ 3
Notes to Condensed Consolidated Financial Statements
(unaudited) .......................................................... 4
ITEM 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations ................................ 7
PART II. OTHER INFORMATION:
ITEM 1. Legal Proceedings ............................................... 11
ITEM 2. Changes in Securities ........................................... 11
ITEM 3. Defaults Upon Senior Securities ................................. 11
ITEM 4. Results of votes of Security Holders ............................ 11
ITEM 5. Other Information ............................................... 11
ITEM 6. (a). Exhibits .................................................. 11
(b). Reports on Form 8-K ....................................... 11
SIGNATURES ................................................................. 12
<PAGE>
VILLAGE BANCORP, INC.
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PART I. - FINANCIAL INFORMATION
<PAGE>
VILLAGE BANCORP, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
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ASSETS Sept. 30, 1995 Dec. 31, 1994
-------------- -------------
(In thousands, except share data)
Cash and due from banks $ 8,042 $ 9,643
Federal funds sold 4,600 3,250
--------- ---------
Total cash and cash equivalents 12,642 12,893
Securities:
Available-for-sale (at fair value) 14,898 11,509
Held-to-maturity (market value of
$14,555 at Sept. 30, 1995 and $23,645 at
December 31, 1994) 14,499 24,308
Loans, net of deferred loan fees - Note C 120,272 106,325
Allowance for loan losses (1,275) (1,551)
--------- ---------
Loans - net 118,997 104,774
Loans held for sale 125 --
Bank premises and equipment - net 1,596 1,636
Accrued interest and other assets 1,928 2,121
--------- ---------
TOTAL ASSETS $ 164,685 $ 157,241
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Noninterest bearing $ 15,595 $ 16,023
Interest bearing 133,714 127,398
--------- ---------
Total deposits 149,309 143,421
Accrued interest payable 1,076 339
Other liabilities 498 427
--------- ---------
Total liabilities 150,883 144,187
--------- ---------
Stockholders' Equity:
Common stock, par value $3.33 per share;
authorized - 2,000,000 shares, issued
and outstanding, 946,633 at Sept. 30,
1995 and 946,949 at December 31, 1994 3,152 3,153
Additional paid-in capital 7,963 7,959
Retained earnings 2,705 2,099
Net unrealized losses on available-
for-sale securities (18) (157)
--------- ---------
Total stockholders' equity 13,802 13,054
--------- ---------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 164,685 $ 157,241
========= =========
SEE NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS.
- 1 -
<PAGE>
VILLAGE BANCORP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - (UNAUDITED)
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<TABLE>
<CAPTION>
THREE MONTHS ENDED NINE MONTHS ENDED
SEPT. 30, SEPT. 30,
1995 1994 1995 1994
---- ---- ---- ----
(In thousands, except per share data)
<S> <C> <C> <C> <C>
INTEREST INCOME:
Loans, including fees $2,665 $1,973 $7,512 $5,569
Investment securities:
Taxable 386 462 1,229 1,346
Tax-exempt 28 26 84 74
Federal funds sold 140 50 300 173
------ ------ ------ ------
Total interest income 3,219 2,511 9,125 7,162
INTEREST EXPENSE ON DEPOSITS 1,282 717 3,370 2,115
------ ------ ------ ------
NET INTEREST INCOME 1,937 1,794 5,755 5,047
PROVISION FOR LOAN LOSSES 75 34 180 137
------ ------ ------ ------
NET INTEREST INCOME AFTER PROVISION
FOR LOAN LOSSES 1,862 1,760 5,575 4,910
------ ------ ------ ------
OTHER INCOME:
Security gains/(losses) - net (8) -- (2) --
Other operating income 118 149 383 571
------ ------ ------ ------
Total other income 110 149 381 571
------ ------ ------ ------
OTHER EXPENSES:
Salaries and employee benefits 714 691 2,261 2,157
Net occupancy 137 130 406 393
Furniture and equipment 69 71 211 222
Data processing services 129 110 358 318
Regulatory assessments (5) 87 129 253
Printing, stationery and supplies 56 51 157 120
Other operating expenses 299 341 830 964
------ ------ ------ ------
Total other expenses 1,399 1,481 4,352 4,427
------ ------ ------ ------
INCOME BEFORE PROVISION FOR INCOME TAXES 573 428 1,604 1,054
PROVISION FOR INCOME TAXES 255 232 685 525
------ ------ ------ ------
NET INCOME $ 318 $ 196 $ 919 $ 529
====== ====== ====== ======
PER SHARE DATA - Note E:
Cash dividends declared $ .11 $ .11 $ .33 $ .52
Net income $ .34 $ .21 $ .97 $ .56
Number of shares outstanding 946,633 942,609 946,633 942,609
</TABLE>
SEE NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS.
- 2 -
<PAGE>
VILLAGE BANCORP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - (UNAUDITED)
- --------------------------------------------------------------------------------
Nine Months
Ended Sept. 30,
1995 1994
---- ----
OPERATING ACTIVITIES: (In thousands)
Net income $ 919 $ 529
Adjustments to reconcile net income to net cash
provided by operating activities:
Provision for loan losses 180 137
Provision for depreciation and amortization 194 185
Accretion of investment security
premiums/discounts - net (118) (79)
Net (decrease) increase in deferred loan fees (51) 155
Increase in interest payable 737 25
Decrease in accrued income and other assets 193 333
Increase in other liabilities 71 48
Origination of loans for sale (2,016) (6,933)
Proceeds from sales of loans 1,891 7,921
-------- --------
Net cash provided by operating activities 2,000 2,321
-------- --------
INVESTING ACTIVITIES:
Proceeds from sales of available-for-sale securities 5,335 --
Proceeds from maturities of available-for-sale securities 2,483 7,266
Proceeds from maturities of held-to-maturity securities 9,819 17,059
Purchases of available-for-sale securities (10,614) (2,886)
Purchases of held-to-maturity securities (347) (10,671)
Net increase in loans (14,352) (8,797)
Purchases of premises and equipment (154) (66)
-------- --------
Net cash (used)/provided by investing activities (7,830) 1,905
-------- --------
FINANCING ACTIVITIES:
Net increase (decrease) in deposits 5,888 (6,428)
Cash dividends (312) (449)
Net proceeds from issuance of common stock 3 11
-------- --------
Net cash provided/(used) by financing activities 5,579 (6,866)
-------- --------
DECREASE IN CASH AND CASH EQUIVALENTS (251) (2,640)
-------- --------
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR 12,893 13,911
-------- --------
CASH AND CASH EQUIVALENTS, END OF PERIOD $ 12,642 $ 11,271
======== ========
SUPPLEMENTAL CASH FLOW DISCLOSURES:
Interest paid on deposits $2,633 $2,090
Income tax payments 615 453
Net unrealized loss on securities held-for-sale 139 90
SEE NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS.
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<PAGE>
VILLAGE BANCORP, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (UNAUDITED)
- --------------------------------------------------------------------------------
NOTE A - BASIS OF PRESENTATION
In the opinion of management, the accompanying unaudited condensed consolidated
financial statements reflect all adjustments necessary, consisting only of
normal recurring accruals, to present fairly the financial position, the results
of operations, cash flows and the changes in financial position of Village
Bancorp, Inc. ("Company") for the periods presented.
Prior to November 18, 1994, Village Bancorp was a one bank holding company with
The Village Bank & Trust Company ("Village") being it's sole subsidiary. On
November 18, 1994, the Company acquired Liberty National Bank ("Liberty"). The
transaction was accounted for using the pooling-of-interests method and
accordingly, all historical financial data was restated to include both entities
for the appropriate periods presented. On June 20, 1995, the Company merged
Liberty into Village and now operates Liberty's former office as a branch office
of Village. As of September 30, 1995, the Company is once again a one bank
holding company.
While management believes that the disclosures presented are adequate so as not
to make the information misleading, it is suggested that these financial
statements be read in conjunction with the consolidated financial statements and
notes included in the Company's 1994 annual report.
Statement of Financial Accounting Standards (SFAS) No. 114, "Accounting for
Impairment of a Loan," as amended by SFAS No. 118 "Accounting by Creditors for
Impairment of a Loan - Income Recognition and Disclosures," was adopted by the
Company as of January 1, 1995 and requires recognition of an impairment of a
loan when it is probable that either the principal and/or interest are not
collectible in accordance with the terms of the loan agreement. Measurement of
the impairment is based on the present value of expected cash flows discounted
at the loan's effective rate or, as a practical expedient, at the loan's
observable market price or the fair value of the collateral if the loan is
collateral-dependent. The impact on the Company's books as a result of the
implementation of SFAS No. 114 was not material. Prior to 1995, the allowance
for credit losses related to impaired loans was based on undiscounted cash flows
or the fair value of the collateral for collateral-dependent loans. Prior to
adoption, the bank generally has applied payments on impaired loans as a
reduction of principal and will continue to do so.
At September 30, 1995, the recorded investment in loans considered impaired
under SFAS No. 114 was approximately $221,000. Each impaired loan, as defined,
has been evaluated to measure the impairment in accordance with this statement.
Accordingly, reserves have been established where necessary resulting in a total
allowance for credit losses related to impaired loans of $33,000 as of September
30, 1995. For the period ending September 30, 1995, the interest income
recognized by the Company on impaired loans was not material.
- 4 -
<PAGE>
VILLAGE BANCORP, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (UNAUDITED)
- --------------------------------------------------------------------------------
NOTE B - SECURITIES
The amortized cost and the approximate fair values of securities were as follows
(in thousands):
September 30. 1995
-----------------------------------
Amortized Unrealized Fair
Cost Gain/(Loss) Value
--------- ----------- -------
SECURITIES HELD-TO-MATURITY
U.S. Treasury Securities $ 6,572 $ 73 $ 6,645
U.S. Government Agency 5,535 (45) 5,490
Mortgage-backed securities of
U.S. Government agencies 74 3 77
Obligations of states and
political subdivision 2,318 25 2,343
------- ------- -------
TOTAL $14,499 $ 56 $14,555
======= ======= =======
SECURITIES AVAILABLE-FOR-SALE
U.S. Treasury Securities $10,700 $ 3 $10,703
U.S. Government Agency 3,016 31 3,047
Mortgage-backed securities of
U.S. Government agencies 1,088 (49) 1,039
Corporate securities 50 -- 50
Other 62 (3) 59
------- ------- -------
TOTAL $14,916 $ (18) $14,898
======= ======= =======
December 31, 1994
-----------------------------------
Amortized Unrealized Fair
Cost Gain/(Loss) Value
--------- ----------- -------
SECURITIES HELD-TO-MATURITY
U.S. Treasury Securities $15,340 $ (176) $15,164
U.S. Government Agency 249 -- 249
Mortgage-backed securities of
U.S. Government agencies 6,396 (391) 6,005
Obligations of states and
political subdivision 2,323 (96) 2,227
------- ------- -------
TOTAL $24,308 $ (663) $23,645
======= ======= =======
SECURITIES AVAILABLE-FOR-SALE
U.S. Treasury Securities $ 6,749 $ (17) $ 6,732
Mortgage-backed securities of
U.S. Government agencies 4,641 (136) 4,505
Corporate securities 176 -- 176
Other 100 (4) 96
------- ------- -------
TOTAL $11,666 $ (157) $11,509
======= ======= =======
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<PAGE>
VILLAGE BANCORP, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (UNAUDITED)
(Continued)
- --------------------------------------------------------------------------------
At September 30, 1995 and December 31, 1994 securities with a book value of
$100,000 and $351,000, respectively, were pledged to secure public deposits and
for other purposes as required or permitted by law and banking regulation.
NOTE C - LOANS
Sept. 30, 1995 Dec. 31, 1994
-------------- -------------
(In thousands)
Real estate $ 98,070 $ 89,910
Commercial and financial 12,234 8,657
Installment and consumer credit 10,298 8,139
Deferred loan fees (330) (381)
--------- ---------
TOTAL $ 120,272 $ 106,325
========= =========
NOTE D - STANDBY LETTERS OF CREDIT
On September 30, 1995, standby letters of credit totaled $2,181,000.
NOTE E - STOCKHOLDERS' EQUITY
A $.11 per share cash dividend was distributed on February 4, 1994 to
stockholders of record on January 19, 1994. A $.19 per share cash dividend was
distributed February 28, 1994 to stockholders of record on February 15, 1994. A
$.11 per share cash dividend was distributed May 6, 1994 to stockholders of
record on April 22, 1994. A $.11 per share cash dividend was distributed August
5, 1994 to stockholders of record on July 22, 1994.
A $.11 per share cash dividend was distributed February 3, 1995 to stockholders
of record on January 23, 1995. A $.11 per share cash dividend was distributed
May 5, 1995 to stockholders of record on April 26, 1995. A $.11 per share cash
dividend was distributed August 4, 1995 to stockholders of record on July 25,
1995.
NOTE F - NEW OFFICE
The Village Bank & Trust Company has announced plans to build a 17,000 square
foot building on Parcel 3 of the Danbury Redevelopment Area on National Place,
in Danbury, Connecticut. The Bank's intent is to open a ground floor branch
office and to move the Bank's back office operations to the second floor of the
building. Applications have been submitted to the State of Connecticut, the FDIC
and the City of Danbury. All necessary approvals are expected by year end.
- 6 -
<PAGE>
VILLAGE BANCORP, INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS
- --------------------------------------------------------------------------------
GENERAL
Village Bancorp, Inc. ("Company"), prior to November 18, 1994 was a one bank
holding company, with The Village Bank & Trust Company ("Village") being its
sole subsidiary. On November 18, 1994, the Company acquired Liberty National
Bank ("Liberty"). The transaction was accounted for using the
pooling-of-interests method and accordingly, all historical financial data was
restated to include both entities for the appropriate periods presented. On June
20, 1995, the Company merged LNB into Village and now operates Liberty's former
office as a branch office of Village. As of September 30, 1995, the Company is
once again a one bank holding company.
The Company had total assets of $164,685,000 on September 30, 1995 in comparison
to total assets of $157,241,000 on December 31, 1994. This is an increase of
$7,444,000 or 4.7%.
For the three month periods ended September 30, 1994 and 1995, the Company's net
income increased from $196,000 for the 1994 period to $318,000 for the 1995
period. Net interest income increased $143,000 (8.0%) from $1,794,000 for the
1994 period to $1,937,000 for the 1995 period.
For the nine month periods ended September 30, 1994 and 1995, the Company's net
income increased from $529,000 for the 1994 period to $919,000 for the 1995
period. Net interest income increased $708,000 (14.0%) from $5,047,000 for the
1994 period to $5,755,000 for the 1995 period.
The increase in net interest income is primarily due to an increase in loan
income, which increased from $5,569,000 during the 1994 period to $7,512,000 for
the 1995 period.
ASSETS AND RELATED INCOME ANALYSIS (Nine Month Comparison)
Loans outstanding on September 30, 1995 totaled $120,272,000 which is an
increase of $13,947,000 (13.1%) from the $106,325,000 outstanding at December
31, 1994. The majority of the increase in the loan portfolio is in the area of
real estate loans and is primarily due to the Bank originating mostly adjustable
rate mortgage loans. The Bank normally holds adjustable rate loans it originates
in portfolio while normally selling fixed rate loans in the secondary market.
Loan income increased $1,943,000 (34.9%) from $5,569,000 at September 30, 1994
to $7,512,000 at September 30, 1995. This increase is due to an increase in the
average rate earned from 7.63% in the
- 7 -
<PAGE>
VILLAGE BANCORP, INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS (Continued)
- --------------------------------------------------------------------------------
1994 period to 8.65% in the 1995 period, coupled with an increase in average
outstanding loans from $97,330,000 in the 1994 period to $115,822,000 in the
1995 period.
Securities, which consist of securities held-to-maturity and securities
available-for-sale, decreased $6,420,000 (17.9%) from $35,817,000 at December
31, 1994 to $29,397,000 at September 30, 1995. Security income decreased
$107,000 (7.5%) from $1,420,000 in the period ending September 30, 1994 to
$1,313,000 in the 1995 period. This decrease was due to a decrease in the
average dollar amount of securities held, from $35,575,000 in the 1994 period to
$28,220,000 in the 1995 period, offset by an increase in the average rate earned
from 5.32% in the 1994 period to 6.20% in the 1995 period. The Company holds
securities held-to-maturity until maturity and does not trade them. Securities
classified as available-for-sale are used to compensate for liquidity
forecasting deviations.
Federal funds sold increased $1,350,000 (41.5%) from $3,250,000 at December 31,
1994 to $4,600,000 at September 30, 1995. Federal funds sold income increased
$127,000 (73.4%) from $173,000 for the 1994 period to $300,000 for the 1995
period, primarily due to an increase in the average rate earned from 3.87% in
the 1994 period to 5.88% for the 1995 period, coupled with an increase in the
average dollar amount outstanding from $5,956,000 in the 1994 period to
$6,803,000 in the 1995 period.
LIABILITIES AND RELATED EXPENSE ANALYSIS (Nine Month Comparison)
Deposits increased $5,888,000 (4.1%) from $143,421,000 at December 31, 1994 to
$149,309,000 at September 30, 1995. Interest on deposits increased $1,255,000
(59.3%) from $2,115,000 for the 1994 period to $3,370,000 for the 1995 period.
This increase was primarily attributable to an increase in the average rate paid
from 2.10% in the 1994 period to 3.10% in the 1995 period, coupled with an
increase in the average outstandings from $134,413,000 for the 1994 period to
$144,730,000 for the 1995 period.
Data processing expense increased $40,000 (12.6%) from $318,000 in the 1994
period to $358,000 in the 1995 period, as a result of increased use of data
processing services along with general price increases.
Printing, stationery and supplies expense increased $37,000 (30.8%) from
$120,000 in the 1994 period to $157,000 in the 1995 period mainly as a result of
charges associated with the merger.
- 8 -
<PAGE>
VILLAGE BANCORP, INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS (Continued)
- --------------------------------------------------------------------------------
ASSETS AND RELATED INCOME ANALYSIS (Three Month Comparison)
Loans outstanding increased $46,000 during the three month period ended
September 30, 1995. This compares to the $4,580,000 (4.7%) increase in the 1994
period. Loan income increased $692,000 (35.1%) from $1,973,000 for the 1994
period to $2,665,000 for the 1995 period. This increase is due to an increase in
the average rate earned from 7.90% for the 1994 period to 8.86% for the 1995
period and an increase in average outstanding loans from $99,924,000 for the
1994 period to $120,320,000 for the 1995 period.
Securities, which consist of securities held-to-maturity and securities
available-for-sale, increased $7,181,000 (32.3%) during the 1995 period as
compared to a decrease of $6,413,000 (17.3%) for the 1994 period. Security
income decreased from $488,000 for the 1994 period to $414,000 for the 1995
period, primarily as a result of a decrease in the average dollar amount of
securities held from $35,179,000 for the 1994 period to $26,748,000 for the 1995
period, offset by an increase in the average rate earned from 5.55% for the 1994
period to 6.19% for the 1995 period.
Federal funds sold decreased $7,800,000 (62.9%) during the 1995 period as
compared to a decrease of $3,650,000 (52.5%) for the 1994 period. Federal funds
sold income increased $90,000 (180.0%) from $50,000 in the 1994 period to
$140,000 in the 1995 period primarily as a result of an increase in the average
rate earned of 4.42% for the 1994 period as compared to 5.67% for the 1995
period, coupled with an increase in the average dollar amount outstanding from
$4,530,000 for the 1994 period as compared to $9,869,000 for the 1995 period.
LIABILITIES AND RELATED EXPENSE ANALYSIS (Three Month Comparison)
Deposits decreased $2,818,000 (1.8%) during the 1995 period as compared to a
decrease of $5,986,000 (4.3%) for the 1994 period. Interest on deposits
increased $565,000 (78.8%) from $717,000 for the 1994 period to $1,282,000 for
the 1995 period. This increase is mainly attributable to an increase in the
average rate paid from 2.13% in the 1994 period to 3.38% in the 1995 period
along with an increase in the average dollar amount outstanding from
$134,520,000 for the 1994 period to $151,933,000 for the 1995 period.
LIQUIDITY
Liquidity is the ability to provide funds for loan requests, unexpected deposit
outflows and meeting other recurring financial
- 9 -
<PAGE>
VILLAGE BANCORP, INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS (Continued)
- --------------------------------------------------------------------------------
obligations. Cash and cash equivalents at September 30, 1995 were $12,642,000 or
7.7% of total assets as compared to $12,893,000 or 8.2% of total assets at
December 31, 1994. The Bank also maintains excess stored liquidity reserves to
compensate for liquidity forecasting deviations. These reserves are comprised of
investment grade securities that are highly marketable and liquid. The primary
source of liquidity, cash and due from banks and federal funds sold, have
historically surpassed the liquidity needs of the Company. Management closely
monitors the Bank's liquidity/cash flow position and does not anticipate any
liquidity problems in the future.
PROVISION FOR LOAN LOSSES
The provision for loan losses is closely monitored by management to maintain a
provision and an allowance that is considered adequate. There is no assurance
that the Bank will not be required to make future adjustments to the allowance
in response to changing economic conditions or regulatory examinations.
CAPITAL RESOURCES
The table below lists the minimum capital requirements along with the Bank's
capital position at September 30, 1995:
Capital Minimum Capital Bank's Capital
Standard Requirement Position at
- ---------- ---------------- -----------------
Total capital to risk
weighted assets 8.00% 14.32%
Stockholders' equity to
risk weighted assets 4.00% 13.50%
Leverage ratio 3.0 - 5.0% 8.63%
- 10 -
<PAGE>
VILLAGE BANCORP, INC.
- --------------------------------------------------------------------------------
PART II. - OTHER INFORMATION
Item 1. Legal Proceedings Not Applicable
Item 2. Changes in Securities Not Applicable
Item 3. Defaults Upon Senior Securities Not Applicable
Item 4. Results of Votes of Security Holders Not Applicable
Item 5. Other Information Not Applicable
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits - None
(b) Reports on Form 8-K - There were no reports on Form 8-K filed for the
three months ended September 30, 1995.
- 11 -
<PAGE>
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.
Village Bancorp, Inc.
(Registrant)
Date: Nov. 13, 1995 /s/ James R. Umbarger
------------------ ----------------------------------------
James R. Umbarger, Executive Vice
President and Chief Operating Office
Date: Nov. 13, 1995 /s/ Gerard P. Shpunt
------------------ ----------------------------------------
Gerard P. Shpunt - Senior Vice President
and Controller
- 12 -
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 9
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 9-mos
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-01-1995
<PERIOD-END> SEP-30-1995
<EXCHANGE-RATE> 1
<CASH> 8,042
<INT-BEARING-DEPOSITS> 0
<FED-FUNDS-SOLD> 4,600
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 14,898
<INVESTMENTS-CARRYING> 14,499
<INVESTMENTS-MARKET> 14,555
<LOANS> 120,272
<ALLOWANCE> (1,275)
<TOTAL-ASSETS> 164,685
<DEPOSITS> 149,309
<SHORT-TERM> 0
<LIABILITIES-OTHER> 1,574
<LONG-TERM> 0
<COMMON> 3,152
0
0
<OTHER-SE> 10,668
<TOTAL-LIABILITIES-AND-EQUITY> 164,685
<INTEREST-LOAN> 7,512
<INTEREST-INVEST> 1,313
<INTEREST-OTHER> 300
<INTEREST-TOTAL> 9,125
<INTEREST-DEPOSIT> 3,370
<INTEREST-EXPENSE> 3,370
<INTEREST-INCOME-NET> 5,755
<LOAN-LOSSES> 180
<SECURITIES-GAINS> (2)
<EXPENSE-OTHER> 4,352
<INCOME-PRETAX> 1,604
<INCOME-PRE-EXTRAORDINARY> 1,604
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 919
<EPS-PRIMARY> .97
<EPS-DILUTED> .97
<YIELD-ACTUAL> 5.09
<LOANS-NON> 603
<LOANS-PAST> 294
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 1,551
<CHARGE-OFFS> 464
<RECOVERIES> 8
<ALLOWANCE-CLOSE> 1,275
<ALLOWANCE-DOMESTIC> 453
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 822
</TABLE>
