FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
Quarterly Report Under Section 13 or 15(d)
of the Securities Exchange Act of 1934
For quarter ended September 30, 1996 Commission File No. 0-11783
ACNB CORPORATION
(Exact name of registrant as specified in its charter)
PENNSYLVANIA 23-2233457
(state or other jurisdiction of (IRS Employer
incorporation or organization) Identification No.)
675 OLD HARRISBURG ROAD, GETTYSBURG, PA 17325
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: 717-334-3161
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 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 class of
common stock, as of the latest practicable date.
CLASS OUTSTANDING AT SEPTEMBER 30, 1996
Common Stock 5,301,182
($2.50 par value)
Page 1
<PAGE>
ACNB CORPORATION
INDEX
Page No.
--------
Part I. Financial Information
Consolidated Condensed Balance Sheets
September 30, 1996 and December 31, 1995 and
September 30, 1995 3
Consolidated Condensed Statements of Income
Nine Months Ended September 30, 1996 and 1995 4
Consolidated Statements of Cash Flows
Nine Months Ended September 30, 1996 and 1995 5
Notes to Consolidated Condensed Financial Statements 6-7
Management's Discussion and Analysis of the Financial
Condition and Results of Operation 8-11
Part II. Other Information 12
Page 2
<PAGE>
PART I FINANCIAL INFORMATION
ACNB CORPORATION AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CONDITION
<TABLE>
<CAPTION>
Sept 30 December 31 Sept 30
1996 1995 1995
--------- --------- ---------
<S> <C> <C> <C>
ASSETS (000 omitted)
Cash and Due from Banks $ 13,713 $ 22,900 $ 13,409
Investment Securities
Securities Held to Maturity 104,896 104,842 108,965
Securities Available for Sale 37,020 0 0
--------- --------- ---------
Total Investment Securities 141,916 104,842 108,965
Federal Funds Sold 100 100 100
Loans 322,333 324,002 324,923
Less: Reserve for Loan Losses (3,211) (3,274) (3,292)
--------- --------- ---------
Net Loans 319,122 320,728 321,631
Premises and Equipment 5,447 5,767 5,875
Other Real Estate 895 689 769
Other Assets 6,707 4,327 5,177
--------- --------- ---------
TOTAL ASSETS $ 487,900 $ 459,353 $ 455,926
========= ========= =========
LIABILITIES
Deposits
Noninterest Bearing 45,078 44,318 41,335
Interest Bearing 352,798 347,925 342,773
--------- --------- ---------
Total Deposits 397,876 392,243 384,108
Securities Sold Under
Agreement To Repurchase 20,807 13,203 17,197
Borrowing Federal Home Loan Bank 16,800 0 350
Demand Notes U.S. Treasury 450 199 450
Other Liabilities 3,385 2,245 3,086
--------- --------- ---------
TOTAL LIABILITIES 439,318 407,890 405,191
SHAREHOLDERS EQUITY
Common Stock ($2.50 par value)
20,000,000 shares authorized:
5,301,182 shares issued and
outstanding at 9/30/96 13,253 13,269 13,290
Surplus 4,306 4,396 4,511
Retained Earnings 30,851 33,798 32,934
Net unrealized gains on securities available
for sale 172
--------- --------- ---------
TOTAL SHAREHOLDERS EQUITY 48,582 51,463 50,735
TOTAL LIABILITIES AND SHAREHOLDERS
EQUITY $ 487,900 $ 459,353 $ 455,926
========= ========= =========
</TABLE>
See accompanying notes to financial statements.
Page 3
<PAGE>
ACNB CORPORATION AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
Sept 30 Sept 30
1996 1995 1996 1995
---- ---- ---- ----
(000 omitted) (000 omitted)
<S> <C> <C> <C> <C>
INTEREST INCOME
Loan Interest and Fees $ 6,640 $ 6,656 $19,786 $19,265
Interest and Dividends on
Investment Securities 1,965 1,426 4,806 4,606
Interest on Federal Funds Sold 1 1 4 4
Interest on Balances with
Depository Institutions 49 63 483 72
------- ------- ------- -------
TOTAL INTEREST INCOME 8,655 8,146 25,079 23,947
INTEREST EXPENSE
Deposits 3,592 3,510 10,725 9,899
Other Borrowed Funds 246 203 533 782
------- ------- ------- -------
TOTAL INTEREST EXPENSE 3,838 3,713 11,258 10,681
NET INTEREST INCOME 4,817 4,433 13,821 13,266
Provision for Loan Losses 0 0 0 0
NET INTEREST INCOME AFTER PROVISION ------- ------- ------- -------
FOR LOAN LOSSES 4,817 4,433 13,821 13,266
OTHER INCOME
Trust Department 153 74 342 226
Service Charges on Deposit Accounts 192 178 558 479
Other Operating Income 223 140 499 463
Securities Gains 0 0 0 0
------- ------- ------- -------
TOTAL OTHER INCOME 568 392 1,399 1,168
OTHER EXPENSES
Salaries and Employee Benefits 1,509 1,349 4,418 4,154
Premises and Fixed Assets 427 427 1,271 1,136
Other Expenses 640 548 1,906 2,179
------- ------- ------- -------
TOTAL OTHER EXPENSE 2,576 2,324 7,595 7,469
INCOME BEFORE INCOME TAX 2,809 2,501 7,625 6,965
Applicable Income Tax 926 819 2,506 2,272
------- ------- ------- -------
NET INCOME $ 1,883 $ 1,682 $ 5,119 $ 4,693
======= ======= ======= =======
EARNINGS PER SHARE* $ 0.36 $ 0.32 $ 0.97 $ 0.88
DIVIDENDS PER SHARE* 0.18 0.17 1.52 0.49
</TABLE>
*Based on 5,303,687 shares outstanding in 1996 and 5,316,122 in 1995
See accompanying notes to financial statements
Page 4
<PAGE>
ACNB CORPORATION AND SUBSIDIARY
STATEMENT OF CASH FLOWS
Nine months ended
Sept 30
1996 1995
---- ----
(000 omitted)
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
Cash Flows from Operating Activities:
Interest and Dividends Received $ 24,235 $ 23,871
Fees and Commissions Received 1,829 1,483
Interest Paid (10,521) (9,604)
Cash Paid to Suppliers and Employees (8,357) (7,401)
Income Taxes Paid (2,430) (2,781)
Net Cash Provided by Operating Activities 4,756 5,568
Cash Flows from Investing Activities:
Proceeds from Maturities of Investment Securities
and Interest Bearing Balances with Other Banks 34,266 40,785
Purchase of Investment Securities and Interest
Bearing Balances with Other Banks (71,570) (5,474)
Principal Collected on Loans 62,617 51,053
Loans Made to Customers (61,223) (69,870)
Capital Expenditures (149) (411)
Net Cash Used in Investing Activities (36,059) 16,083
Cash Flow from Financing Activities:
Net Increase in Demand Deposits, NOW Accounts, and
Savings Accounts 3,853 (14,612)
Proceeds from Sale of Certificates of Deposit 33,389 33,436
Payments for Maturing Certificates of Deposit (24,005) (20,930)
Dividends Paid (8,065) (2,605)
Increase (Decrease) in Borrowings 17,051 (16,450)
Repurchase of Common Stock (107) 0
Net Cash Provided by Financing Activities 22,116 (21,161)
Net Increase in Cash and Cash Equivalents (9,187) 490
Cash and Cash Equivalents: Beginning of Period 23,000 13,019
End of Period 13,813 13,509
RECONCILIATION OF NET INCOME TO NET CASH PROVIDED BY
OPERATING ACTIVITIES
Net Income 5,119 4,693
Adjustments to Reconcile Net Income to Net Cash
Provided by Operating Activities:
Depreciation and Amortization 475 416
Provision for Possible Credit Losses 0 0
Provision for Deferred Taxes 91 88
Amortization of Investment Securities Premiums 340 638
Increase (Decrease) in Taxes Payable (15) (597)
(Increase) Decrease in Interest Receivable (899) (293)
Increase (Decrease) in Interest Payable 737 1,077
Increase (Decrease) in Accrued Expenses 338 (44)
(Increase) Decrease in Other Assets (1,569) (298)
Increase (Decrease) in Other Liabilities 139 (112)
Net Cash Provided by Operating Activities 4,756 5,568
DISCLOSURE OF ACCOUNTING POLICY
For purposes of reporting cash flows, cash and cash
equivalents include cash on hand, amounts due from
banks, and federal funds sold. Generally, federal
funds are purchased and sold for one-day periods.
Page 5
<PAGE>
ACNB CORPORATION AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. In the opinion of management, the accompanying unaudited consolidated
financial statements contain all adjustments necessary to present fairly
ACNB Corporation's financial position as of September 30, 1996 and 1995 and
December 31, 1995 and the results of its operations for the nine months
ended September 30, 1996 and 1995 and changes in financial position for the
nine months then ended. All such adjustments are of a normal recurring
nature.
The accounting policies followed by the company are set forth in Note A to
the company's financial statements in the 1995 ACNB Corporation Annual
Report and Form 10-K filed with the Securities and Exchange Commission
under file no. 0-11783.
2. The book and approximate market values of securities owned at September 30,
1996 and December 31, 1995 were as follows:
<TABLE>
<CAPTION>
9/30/96 12/31/95
Amortized Fair Amortized Fair
Cost Value Cost Value
---- ----- ---- -----
(000 omitted)
<S> <C> <C> <C> <C>
U.S. Treasury (held to maturity) $ 47,999 $ 48,219 $ 47,400 $ 47,779
U.S. Government Agencies (held
to maturity) 55,972 55,713 54,000 53,921
State and Municipal (held to
maturity) 925 926 962 964
U.S. Government Agencies
(avail for sale) 34,190 34,480 0 0
Other Investments (avail for sale) 2,570 2,570 2,480 2,480
-------- -------- -------- --------
TOTAL $141,656 $141,908 $104,842 $105,144
</TABLE>
Income earned on investment securities was as follows:
Nine Months Ended September 30
1996 1995
---- ----
(000 omitted)
U.S. Treasury $1,870 $2,767
U.S. Government Agencies 2,765 1,667
State and Municipal 47 58
Other Investments 124 114
------ ------
$4,806 $4,606
Page 6
<PAGE>
3. Gross loans are summarized as follows:
September 30 December 31
(000 omitted)
Real Estate $287,078 $285,817
Real Estate Construction 10,547 12,951
Commercial and Industrial 9,721 9,268
Consumer 14,987 15,966
-------- --------
Total Loans $322,333 $324,002
4. Earnings per share are based on the weighted average number of shares
of stock outstanding during each period. Weighted average shares
outstanding for the nine month periods ended September 30, 1996 and
1995 were 5,303,687 and 5,316,122 respectively.
5. Dividends per share were $1.52 and $.49 for the nine month periods
ended September 30, 1996 and 1995 respectively. This represented a 157%
payout of net income in 1996 and a 56% payout in 1995. The 1996
dividend includes a $1.00 special dividend paid in January 1996.
6. The results of operations for the nine month periods ended September
30, 1996 and 1995 are not necessarily indicative of the results to be
expected for the full year.
Page 7
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
Results of Operations
The following is management's discussion and analysis of the significant changes
in the results of operations, capital resources and liquidity presented in its
accompanying consolidated financial statements for ACNB Corporation, a bank
holding company (the Corporation), and its wholly-owned subsidiary, Adams County
National Bank (the Bank). The Corporation's consolidated financial condition and
results of operations consist almost entirely of the Bank's financial condition
and results of operations. This discussion should be read in conjunction with
the 1995 Annual Report. Current performance does not guarantee, assure, or may
be indicative of similar performance in the future.
Three months ended September 30, 1996 compared to three months ended September
30, 1995
Net Income for the current three month period was $1,883,000, up $201,000 or 12%
above the third quarter of 1995. The increase in net income was due primarily to
a larger volume of earning assets. Net income per share, for the current quarter
was $.36, up $.04 or 13% above the $.32 earned in the comparable period in 1995.
An explanation of the factors and trends that caused changes between the two
periods, by major earnings category, follows.
Total interest income for the current three month period was $8,655,000, up
$509,000 or 6% above the $8,146,000 earned in the same period of 1995. The
$509,000 increase in interest income was due primarily to a larger volume of
earning assets, principally investments in the securities portfolio. The average
volume of securities available-for-sale was $18.4 million more in the current
quarter than in the comparable quarter of 1995, when there were none. In an
effort to manage interest rate risk, the Bank purchased $35 million of mortgage
backed securities classified as available-for-sale. Income from loans during the
current period was constrained by moderate loan demand and competitive
pressures.
Total interest expense for the current three month period was $3,838,000, up
$125,000 or 3% above the $3,713,000 incurred for the same period in 1995. The
$125,000 increase in interest expense was due primarily to a larger volume of
interest bearing deposits, principally time deposits. The average volume of
interest bearing deposits was $9.5 million higher in the current quarter
compared to the same quarter in 1995.
Net interest income for the current three month period was $4,817,000, up
$384,000 or 8.7% above the $4,433,000 earned in the same period of 1995. The
increase in current period net interest income was achieved primarily from a
larger average volume of earning assets.
Total non-interest income for the current three month period at $568,000, was
$176,000 greater than the same quarter in 1995. This was due to a strong quarter
in the Trust Department caused by an unusual number of estate settlements and
income adjustments consisting of a reversal of $37,000 in expenses related to a
community reinvestment project at the holding company level.
Page 8
<PAGE>
Total non-interest expense for the current three month period was $2,576,000, up
$252,000 or 10.8% greater than the $2,324,000 incurred for the third quarter of
1995.
The provision for income taxes in the current quarter increased $107,000 or
13.1% due to a higher level of pretax earnings.
Nine months ended September 30, 1996 compared to nine months ended September 30,
1995
Net income for the first nine months of 1996 was $5,119,000, up $426,000 or 9.1%
above the $4,693,000 earned for the same period of 1995. The increase in net
income was due primarily to a larger volume of earning assets and a reduction in
FDIC deposit insurance expense. See below for a discussion of changes to the
FDIC fund. Earnings per share, was $.97 on September 30, 1996, compared to $.88
on September 30, 1995. For the nine month period (annualized) of 1996, the
return on average assets (ROA) and return on average equity (ROE) were 1.48% and
14.31%, respectively, compared to 1.36% and 12.52%, respectively, for 1995.
At September 30, 1996, total assets were approximately $488 million, reflecting
a $32 million or 7% increase above September 30, 1995. As explained more fully
under Capital Management section, book value per share was $9.13 on September
30, 1996, compared to $9.54 on June 30, 1995. (The Corporation's capital
remained sound as evidenced by a Tier I Risked-Based Capital Ratio of 17.7% and
a Total Risk-Based Capital Ratio of 19.0% on September 30, 1996.)
Total interest income for the current nine month period was $25,079,000, up
$1,132,000 or 4.7% above the $23,947,000 earned in the same period of 1995. The
$1,132,000 increase in total interest income was due primarily to a larger
volume of earning assets, principally loans in the first half, due to improved
loan demand, and securities growth in the third quarter.
Total interest expense for the current nine month period was $11,258,000, up
$577,000 or 5.4 % above the $10,681,000 incurred for the same period in 1995.
The $577,000 increase in total interest expense was due primarily to a larger
volume of interest bearing deposits, principally time deposits. The year to date
average volume of interest bearing deposits increased approximately $7.1 million
or 2.1% above the same period of 1995.
Net interest income was $13,821,000 for the current period, up $555,000 or 4.2%
above the first nine months in 1995. Income from a larger volume of investment
securities out paced funding costs. The net yield on average earning assets was
4.18% for the current nine month period compared to 4.04% for the same period in
1995.
Total non-interest income for the current nine month period was $1,399,000, up
$231,000 or 20% above the same period in 1995. Improvement was in all major
categories but centered mainly in the Trust Department, which was up $116,000,
caused by greater activity in estate settlements.
Total non-interest expense for the current nine month period was $7,595,000, up
$126,000 or 1.7% above the $7,469,000 incurred for the same period in 1995. The
small increase in total non-interest expense was primarily the result of a
$460,000 reduction in FDIC deposit insurance expense. On September 30, 1996, the
President signed into law the Deposit Insurance Funds Act of 1996, contained in
Subtitle G, Section 2702 of the Defense Appropriations Bill, to remedy the large
disparity of insurance premiums paid by savings institutions for deposit
insurance under the Savings Association Insurance Fund ("SAIF") administered by
the Federal Deposit Insurance Corporation ("FDIC") in comparison to the premiums
paid by banks for deposit insurance under the Bank Insurance Fund (("BIF") also
administered by the FDIC. In order to recapitalize the SAIF and remedy the
disparity in premiums for deposit insurance, the following has been enacted: the
payment of a one-time special assessment of 69 cents per $100 of deposits by
SAIF institutions; the merger of SAIF
Page 9
<PAGE>
and BIF into the Deposit Insurance Fund ("DIF"), if there are no insured savings
associations on January 1, 1999; and the payment by BIF institutions of a
currently estimated 1.29 cents per $100 of deposits for 1997, 1998 and 1999 in
order to share the FICO costs (the costs representing the bonds which were
floated in connection with the bailout). Based on current deposit levels,
Management expects that the increase in the FDIC Assessment rate will impact
results of operations in a currently estimated amount of $51,000 for 1997.
In addition to the reduction in current period FDIC deposit insurance expenses,
salaries and benefits expense increased $264,000 due to normal merit raises and
planned staff additions and furniture and equipment expense increased $135,000
due to shorter depreciation schedules as the rapid pace of change in technology
continues.
The provision for income taxes was $2,506,000 for the current period, up
$234,000 above the same period in 1995 due to a higher level of pretax earnings.
INTEREST RATE SPREAD AND NET YIELD ON EARNING ASSETS
Nine Months Ended
9/30/96 9/30/95
Rate Rate
Earning Assets 7.56% 7.27%
Interest Bearing Liabilities 4.07% 3.88%
Interest Rate Spread 3.50% 3.39%
Net Yield on Earning Assets 4.18% 4.04%
Net Yield on Earning Assets is the difference, stated in percentages, between
the interest earned on loans and other investments and the interest paid on
deposits and other sources of funds. The Net Yield on Earning Assets is one of
the best analytical tools available to demonstrate the effect of interest rate
changes on the Corporation's earning capacity.
The Net Yield on Earning Assets, for the first nine months of 1996, was up 14
basis points compared to the same period in 1995. This is a result of improved
yields on government securities and a larger volume of earning assets.
PROVISION AND RESERVE FOR POSSIBLE LOAN LOSSES
Reserve for Possible Loan Losses
(In Thousands)
Nine Months Ended
9/30/96 9/30/95
Balance at Beginning of Period $3,274 $3,370
Provision Charged to Expense 0 0
Loans Charged Off 127 96
Recoveries 64 18
Balance at End of Period 3,211 3,292
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Ratios:
Net Charge-offs to:
Net Income 1.23% 1.66%
Total Loans .02% .02%
Reserve for Possible Loan Losses 1.96% 2.37%
Reserve for Possible Loan Losses to:
Total Loans 1.00% 1.01%
The Reserve for Possible Loan Losses at September 30, 1996 totaled $3,211,000
(1.00% of Total Loans), a decrease of $81,000 from $3,292,000 (1.01% of Total
Loans) at the end of the first nine months of 1995. Loans past due 90 days and
still accruing amounted to $2,342,000 and non-accrual loans totaled $1,357,000
as of 9/30/96. The ratio of non-performing assets plus other real estate owned
to total assets was .94% at 9/30/96. All properties are carried at the lower of
market or book value and are not considered to represent significant threat of
loss to the bank.
Loans past due 90 days and still accruing were $2,620,000 at year end 1995 while
non-accruals stood at $1,303,000. The bulk of the Corporation's real estate
loans are in owner occupied dwellings but it is hoped that internal loan review
procedures will be effective in recognizing and helping correct any real estate
lending problems that may occur due to current economic conditions. Interest not
accrued, due to an average of $1,269,000 in non-accrual loans, was approximately
$86,000 for the first nine months of 1996.
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. Impaired
loans are measured based on the present value of expected future cash flows,
discounted at the loan's effective interest 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. If the measure of the impaired loan is less than
its recorded investment a creditor must recognize an impairment by creating, or
adjusting, a valuation allowance with a corresponding charge to loan loss
expense. The Corporation uses the cash basis method to recognize interest income
on loans that are impaired. All of the Corporation's impaired loans were on a
non-accrual status for all reported periods.
CAPITAL MANAGEMENT
Total Shareholders' Equity amounted to $48,582,000 at 9/30/96 compared to
$50,735,000 at 9/30/95, a decrease of $2,153,000 or 4% over that period. The
ratio of Total Shareholders' Equity to Total Assets was 11.13% at 9/30/95,
11.20% at 12/31/95, and 9.96% at 9/30/96. The total risk-based capital ratio was
18.95% at 9/30/96. The reduction in the capital ratios from year end 1995 to
9/30/96 was caused by the special dividend of $1.00 per share paid in January
1996.
LIQUIDITY AND INTEREST RATE SENSITIVITY
The Corporation's liquidity is adequate. Liquid assets (cash and due from banks,
federal funds sold, money market instruments, and investment securities maturing
within one year) equal 11.7% of total assets at 9/30/96. This mix of assets
would be readily available for funding any cash requirements. In addition, the
Bank has an approved line of credit of $221,000,000 at the Federal Home Loan
Bank of Pittsburgh.
As of 9/30/96, the cumulative asset sensitive gap was 11% of total assets at one
month, 11.8% at six months, and 24.4% at one year. Adjustable rate mortgages,
which have an annual interest rate cap of 2%, are considered rate sensitive.
Passbook savings and NOW accounts are carried in the one to five year category
while half of money market deposit accounts are spread over the four to twelve
month category and the other half are shown to mature in the one to three year
category.
Page 11
<PAGE>
PART II. OTHER INFORMATION
Item 1. Legal Proceedings
Management is not aware of any litigation that would have a material adverse
effect on the consolidated financial position of the Corporation. There are no
proceedings pending other than the ordinary routine litigation incident to the
business of the Corporation and its subsidiary. In addition, no material
proceedings are pending or are known to be threatened or contemplated against
the Corporation and the Bank by government authorities.
Item 2. Changes in Securities - Nothing to report.
Item 3. Defaults Upon Senior Securities - Nothing to report.
Item 4. Submission of Matters to a Vote of Security Holders - Nothing to report.
Item 5. Change of composition of Board of Directors.
The Board of Directors of the Corporation and Bank adopted a mandatory
retirement program for present and future members of the Boards of Directors of
both institutions. Effective July 1, 1996, a mandatory retirement age of 72 has
been instituted and a program of transition has been initiated for present
members of the Boards of Directors. Under the transitional program, four
directors retired, effective June 30, 1996, and were appointed Director
Emeritus, effective July 1, 1996. The four directors were: C. F. Ditzler,
J. Glenn Guise, Charles E. Ritter and Ralph W. Tyson.
Each Director who attained the age of 72 and who was serving on the Board of
Directors on June 1996, will be permitted to serve the longer of: (1) his or her
current term, or (2) until the annual election in the year 2000.
In addition to the above changes, the Advisory Board of the Bank will be
terminated by May 1997.
Once these changes are fully implemented, the Board of Directors of the
Corporation and Bank will be reduced to an approximate number of eleven.
Item 6. Exhibits and Reports on Form 8-K - Nothing to report.
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.
ACNB CORPORATION
/s/ Ronald L. Hankey
-------------------------------------
Ronald L. Hankey, President
October 31, 1996
(Date) /s/ John W. Krichten
-------------------------------------
John W. Krichten, Secretary/Treasurer
Page 12
<TABLE> <S> <C>
<ARTICLE> 9
<LEGEND>
This schedule contains summary financial information extracted from (identify
specific financial statements) and is qualified in its entirety by reference
to such financial statements.
</LEGEND>
<MULTIPLIER> 1,000
<CURRENCY> U.S.
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> DEC-01-1996
<EXCHANGE-RATE> 1
<CASH> 13,713
<INT-BEARING-DEPOSITS> 0
<FED-FUNDS-SOLD> 100
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 37,020
<INVESTMENTS-CARRYING> 104,896
<INVESTMENTS-MARKET> 104,858
<LOANS> 322,333
<ALLOWANCE> 3,211
<TOTAL-ASSETS> 487,900
<DEPOSITS> 397,876
<SHORT-TERM> 38,057
<LIABILITIES-OTHER> 3,385
<LONG-TERM> 0
0
0
<COMMON> 13,253
<OTHER-SE> 35,329
<TOTAL-LIABILITIES-AND-EQUITY> 48,582
<INTEREST-LOAN> 19,786
<INTEREST-INVEST> 4,806
<INTEREST-OTHER> 487
<INTEREST-TOTAL> 25,079
<INTEREST-DEPOSIT> 10,725
<INTEREST-EXPENSE> 11,258
<INTEREST-INCOME-NET> 13,821
<LOAN-LOSSES> 0
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 7,595
<INCOME-PRETAX> 7,625
<INCOME-PRE-EXTRAORDINARY> 7,625
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 5,119
<EPS-PRIMARY> 0.97
<EPS-DILUTED> 0.97
<YIELD-ACTUAL> 4.18
<LOANS-NON> 1,357
<LOANS-PAST> 2,342
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 1,357
<ALLOWANCE-OPEN> 3,274
<CHARGE-OFFS> 127
<RECOVERIES> 64
<ALLOWANCE-CLOSE> 3,211
<ALLOWANCE-DOMESTIC> 3,211
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
