FORM 10-Q QUARTERLY REPORT
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
QUARTERLY REPORT UNDER SECTION 10
OF THE SECURITIES EXCHANGE ACT OF 1934
For the Quarter Ended September 30, 1995 Commission file number
0-17077
PENNS WOODS BANCORP, INC.
Incorporated in Pennsylvania 23-2226454
Main Office 115 South Main Street
Jersey Shore, Pennsylvania 17740
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 Registrant was required to file
such reports), and (2) has been subject to such filing
requirements for the past 90 days.
YES XXX NO ___
On September 30, 1995 there were 1,267,964 shares of the
Registrant's common stock outstanding.
<PAGE>
PART I FINANCIAL STATEMENTS
<TABLE>
<CAPTION>
PENNS WOODS BANCORP, INC.
CONSOLIDATED BALANCE SHEET
AT DATES INDICATED
September 30, December 31,
1995 1994
<S> <C> <C>
ASSETS:
Cash and due from banks $ 8,119,531 $ 12,025,441
Investment securities available-for-sale 61,634,076 60,067,442
Investment Securities held-to-maturity 2,547,789 6,757,987
Federal funds sold 730,000 0
Loans, net of unearned discount 154,856,839 151,491,899
Allowance for loan losses (2,362,312) (2,126,502)
Loans, net 152,494,527 149,365,397
Bank premises and equipment 3,894,174 4,068,923
Foreclosed assets held for sale 1,048,345 414,572
Accrued interest receivable 1,707,002 1,501,658
Other assets 1,294,605 $ 1,436,388
TOTAL ASSETS $233,470,049 $235,637,808
LIABILITIES:
Demand deposits $ 23,713,041 $ 22,812,653
Interest-bearing demand deposits 36,389,002 40,564,653
Savings deposits 43,264,263 48,966,956
Time deposits 93,449,375 78,457,514
Total deposits $196,815,681 $190,801,776
Federal funds purchased $ 0 $ 7,170,000
Securities sold under repurchase agreements 5,541,037 5,016,567
Accrued interest payable 787,602 610,911
Long-term borrowings 0 7,000,000
Other liabilities 2,414,660 1,199,385
Total liabilities $205,558,980 $211,798,639
SHAREHOLDERS' EQUITY
Common stock, par value $10 per share,
10,000,000 shares authorized
1,267,964 shares issued and outstanding
at September 30, 1995; 1,000,000
shares authorized and 839,046 issued and
outstanding at September 30, 1994 $ 12,679,640 $ 8,437,310
Additional paid-in capital 4,422,742 4,368,147
Retained earnings 9,355,649 11,659,705
Net unrealized gain (loss) on securities
available for sale 1,453,038 (625,993)
Total shareholders' equity $ 27,911,069 $ 23,839,169
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $233,470,049 $235,637,808
</TABLE>
<PAGE>
PENNS WOODS BANCORP, INC.
CONSOLIDATED STATEMENT OF INCOME
FOR THE PERIODS INDICATED
<TABLE>
<CAPTION>
Nine Months Nine Months Quarter Quarter
Ended Ended Ended Ended
September 30, September 30, September 30, September 30
1995 1994 1995 1994
<S> <C> <C> <C> <C>
INTEREST INCOME:
Interest and fees on loans $10,975,005 $ 9,545,734 $3,767,229 $3,423,793
Interest and dividends on investments:
Taxable interest 1,706,949 1,720,481 567,797 671,341
Nontaxable interest 826,627 792,076 264,438 189,621
Dividends 299,487 289,437 100,030 91,568
Total interest and dividends
on investments 2,833,063 2,801,994 932,265 952,530
Interest on Federal funds sold 131,150 12,858 64,788 0
Total interest income 13,939,218 12,360,586 4,764,282 4,376,323
INTEREST EXPENSE:
Interest on deposits 5,391,200 4,545,077 1,906,190 1,572,908
Interest on Federal funds purchased 65,323 137,268 58 55,803
Interest on securities sold under
repurchase agreements 145,759 68,788 60,911 17,131
Interest on other borrowings 195,668 331,773 0 114,324
Total interest expense 5,797,950 5,082,906 1,967,159 1,760,166
Net interest income 8,141,268 7,277,680 2,797,123 2,616,157
Provision for loan losses 300,015 427,015 100,005 125,005
Net interest income after
provision for loan losses 7,841,253 6,850,665 2,697,118 2,491,152
OTHER OPERATING INCOME:
Service charges 558,856 519,077 201,736 189,877
Securities gains 887,063 1,295,192 321,411 341,086
Other income 185,242 154,275 53,751 56,443
Total other operating income 1,631,161 1,968,544 576,898 587,406
OTHER OPERATING EXPENSES:
Salaries and employee benefits 3,121,486 2,525,181 863,121 883,449
Occupancy expense, net 360,166 435,209 114,729 138,912
Furniture and equipment expense 485,333 308,943 118,301 103,250
Other expenses 1,942,506 1,572,647 591,498 541,271
Total other operating expenses 5,909,491 4,841,980 1,687,649 1,666,882
INCOME BEFORE TAXES 3,562,923 3,977,229 1,586,367 1,411,676
INCOME TAX PROVISION 888,177 1,065,064 545,113 400,903
NET INCOME $ 2,674,746 $ 2,912,165 $1,041,254 $1,010,773
EARNINGS PER SHARE 2.11 2.30 0.82 0.80
TOTAL SHARES OUTSTANDING 1,266,997 1,266,878 1,266,997 1,266,878
(ADJUSTED FOR 50% STOCK DIVIDEND)
/TABLE
<PAGE>
PENNS WOODS BANCORP, INC.
CONSOLIDATED STATEMENT OF CHANGES
IN SHAREHOLDERS' EQUITY
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1995
<TABLE>
<CAPTION>
Unrealized
Appreciation
Additional (Depreciation) on Total
Common Paid-In Retained Securities Shareholders'
Stock Capital Earnings Available-for-Sale Equity
<S> <C> <C> <C> <C> <C>
Balance, December 31, 1994
as previously reported $ 7,416,200 $4,394,542 $ 9,905,264 $ (497,615) $21,218,391
Adjustments in connection
with pooling of interest 1,021,110 (26,395) 1,754,441 (128,378) 2,620,778
Balance, December 31, 1994
as restated $ 8,437,310 $4,368,147 $11,659,705 $ (625,993) $23,839,169
Net income for the nine months
ended September 30, 1995 2,674,746 2,674,746
Dividends declared and paid (756,142) (756,142)
Stock dividend declared (50%) 4,222,660 (4,222,660) 0
Net change in unrealized gain
on marketable equity
securities 2,079,031 2,079,031
Stock options exercised 19,670 54,595 74,265
Balance, September 30, 1995 $12,679,640 $4,422,742 $ 9,355,649 $1,453,038 $27,911,069
</TABLE>
<PAGE>
CONSOLIDATED STATEMENT
OF CASH FLOWS
FOR THE NINE MONTHS ENDED
SEPTEMBER 30, 1995 AND SEPTEMBER 30, 1994
<TABLE>
<CAPTION>
Nine Months Nine Months
Ended Ended
September 30, September 30,
1995 1994
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income $2,674,746 $2,912,165
Adjustments to reconcile net income to
net cash provided by operating activities
Depreciation 258,412 208,523
Provision for loan losses 300,015 427,015
Amortization of investment security premiums 29,761 51,316
Accretion of investment security discounts (82,407) (47,323)
Securities losses (gains) (887,063) (1,302,978)
Operating expense recognized in relation to
exercise of stock options 74,265 0
Increase in all other assets (851,178) (1,537,070)
Increase in all other liabilities 1,391,966 1,006,720
Net cash provided by operating activities 2,908,517 1,718,368
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of securities available-for-sale (32,560,319) (36,858,379)
Proceeds from sale of securities
available-for-sale 34,408,708 41,237,856
Purchase of securities held-to-maturity (50,000) 0
Proceeds from calls and maturities of
securities held-to-maturity 4,934,931 0
Net increase in loans (3,429,145) (12,573,782)
Increase (Decrease) in foreclosed assets (633,773) 10,735
Acquisition of bank premises and equipment (367,062) (428,852)
Net cash provided by (used in) investing
activities 2,303,340 (8,612,422)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net increase in interest-bearing deposits 5,113,517 11,155,605
Net increase (decrease) in noninterest-bearing
deposits 900,388 2,562,985
Net increase (decrease) in securities
sold under repurchase agreement 524,470 (296,894)
Decrease in other borrowed funds (7,170,000) (5,342,400)
Increase in long-term borrowings 0 0
Repayment of long-term borrowings (7,000,000) 1,175,000
Dividends paid (756,142) (622,961)
Net cash provided by (used in) financing
activities (8,387,767) 8,631,335
NET INCREASE IN CASH AND CASH EQUIVALENTS (3,175,910) 1,737,281
CASH AND CASH EQUIVALENTS, BEGINNING 12,025,441 12,980,957
CASH AND CASH EQUIVALENTS, ENDING $ 8,849,531 $14,718,238
</TABLE>
The interim financial statements are unaudited but, in the
opinion of management, reflect all adjustments necessary for
the fair presentation of results for such periods. The
results of operations for any interim period are not
necessarily indicative of results for the full year. These
financial statements should be read in conjunction with
financial statements and notes thereto contained in the
Company's annual report for the year ended December 31,
1994.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
EARNINGS SUMMARY
Interest Income
For the nine months ended September 30, 1995, total
interest income increased by $1,578,632 or 12.77%
compared to the same period in 1994. This increase is
due to a $1,429,271 increase in interest and fees on
loans, an increase in total interest and dividends on
investments of $31,069 and an $118,292 increase in
income in federal funds sold.
The increase in interest and fees on loans of
$1,429,271 was primarily due to a 1.00% increase in the
prime lending rate as well as an increase in loan
volume during this period of $8,015,784. The increase
in interest on federal funds sold of $118,292 was due
to an increase in the amount of funds sold. Interest
and dividends on investments increased primarily due to
a decrease in taxable interest of $13,532 and an
increase in nontaxable interest on investments of
$34,551. In addition, there was a slight increase in
dividend income of $10,050 due to an increase of
holdings in the equity portfolio.
Interest Expense
For the nine months ended September 30, 1995, total
interest expense increased $715,044 or 14.07% over the
same period in 1994. This increase is primarily the
result of an increase in the amount of interest paid on
deposits due to increases in the rates paid on such
deposits. Another contributing factor to the increase
in interest paid on interest bearing deposits was the
increase in volume of such deposits of $1,976,064.
<PAGE>
Provision for Loan Losses
The provision for losses for the nine months ended
September 30, 1995 decreased $127,000 from the corresponding
period in 1994. This decrease reflects a decline in
anticipated losses on small business loans for the first
nine months of 1995 and the fiscal year.
As of the third quarter of 1995, charge offs exceeded
recoveries by $64,000 compared to the third quarter of 1994
when charge offs exceeded recoveries by $339,000.
Provisions to date total $300,015 as compared to provisions
through September 30, 1994 of $427,015.
Senior Management utilizes several different methods to
determine the adequacy of the loan loss allowance and to
establish quarterly provisions. Among these methods is the
analysis of the most recent five year average loss history,
the coverage of non-performing loans provided by the
allowance, an estimate of potential loss in homogeneous
pools of loans and the internal credit rating assigned to
watch and problem loans.
In addition to the preceding, senior management also reviews
macro portfolio risks such as the absence of concentrations,
absence of foreign credit exposure and growth objectives in
further tuning the allowance and provisions.
The ratio of non-accruing loans and those accruing but
delinquent more than 90 days (collectively called "non-
performing" loans) to the allowance for loan losses stood at
.88 times at September 30, 1995 an improvement over the
1.36 times at December 31, 1994. Based upon this analysis
as well as the others noted above, senior management has
concluded that the allowance for loan losses is adequate.
Other Operating Income
Other operating income for the nine months ended
September 30, 1995 decreased $337,383 or 17.14% from the
same time period in 1994. This decrease is due to the net
effect of an increase in service charges collected of
$39,779, a decrease in securities gains realized of $408,129
and an increase in other income of $30,967.
The increase in service charges, which was a result of an
increase in service charges collected on deposit accounts,
and gains taken on the sale of foreclosed assets during the
first nine months contributed to the increase in other
income. The primary decrease in other operating income was
due to the decline in securities gains recognized of
$408,129. Realized gains were on partial sales of equity
securities that have been in the portfolio long-term that
had reached what management had determined to be their
maximum potential.
Other Operating Expense
For the nine months ended September 30, 1995 total operating
expenses increased $1,067,511 or 22.05% over the same period
in 1994. Expenses included under this heading are such
items as: advertising, postage, maintenance, FDIC, SAIF and
other insurance, Pennsylvania State shares tax, legal and
professional fees, telephone, printing and supplies and
other general and administrative expenses. Increases in
other expenses totalled $369,859. This increase can be
attributed to expenses related to the acquisition of Lock
Haven Savings Bank and are non-recurring.
In addition, employee salaries and benefits increased
$596,305. In connection with the merger, two Lock Haven
Savings Bank executives were paid to satisfy the terms of
their employment agreements. The remainder of the increase
in employee salaries and benefits can be attributed to the
need to hire additional employees and to raise salary levels
to keep pace with inflation. Occupancy expense decreased
$75,043. Furniture and equipment expense increased $176,390
resulting from the lease of a new computer system, as well
as additional expenses incurred during the merger.
Provision for Income Taxes
Provision for income taxes for the nine months ended
September 30, 1995 resulted in an effective income tax rate
of 24.93% compared to 26.78% for the corresponding period in
1994. The decrease noted is primarily a result of a
decrease in security gains for the September 30, 1995 period
compared to September 30, 1994 as well as an increase in
nontaxable interest and a decrease in taxable interest on
investments for the same periods.
ASSET/LIABILITY MANAGEMENT
Assets
At September 30, 1995, cash, federal funds sold, and
investment securities totalled $73,031,396, or a net
decrease of $5,819,474 over the corresponding balance at
December 31, 1994. Investment securities and cash decreased
$3,905,910 and $2,643,564, respectively, while federal funds
sold increased $730,000. During this period, net loans
increased by $3,129,130 to $152,494,527.
The investment securities decline is temporary due to the
maturity of certain securities during the first quarter of
1995. In addition, subsequent to the acquisition of Lock
Haven Savings Bank, management reviewed the acquired
portfolio and made the decision to diversify the
investments. The intention is to strengthen and improve the
future long-term yield on the portfolio.
Management evaluates credit risk, anticipated economic
conditions and other relevant factors impacting the quality
of the loan portfolio in order to establish an adequate
loan-loss allowance. An internal credit review committee
monitors loans in accordance with Federal supervisory
standards. Furthermore, results of examination and
appraisal of the coverage of the loan-loss allowance by the
committee, Federal regulators and independent accountants
are frequently reviewed by management.
Accordingly, on a quarterly basis, management determines an
appropriate provision for possible loan losses from earnings
in order to maintain allowance coverage relative to
potential losses.
The allowance for loan losses totalled $2,362,312 at
September 30, 1995, an increase of $235,810 over the balance
at December 31, 1994. For the nine months ended
September 30, 1995, the provision for loan losses totalled
$300,015. As a percent of loans, the allowance for loan
losses at September 30, 1995 totalled 1.53% versus 1.40% at
December 31, 1994.
Loans accounted for on a non-accrual basis totalled
$1,109,000 and $2,223,000 at September 30, 1995 and
December 31, 1994 respectively.
Accruing loans, contractually delinquent 90 days or more
were $960,000 at September 30, 1995 and $672,000 at
December 31, 1994. These loans are predominately secured by
first lien mortgages on residential real estate where
appraisal values mitigate any potential loss of interest and
principal. The ratio of non-accruing loans and those
accruing but delinquent more than 90 days to the allowance
for loan losses stood at .88 times at September 30, 1995 and
1.36 times at December 31, 1994. Presently the portfolio
has no loans that meet the definition of "trouble debt
restructurings" under FAS 15.
A watch list of potential problem loans is maintained and
updated quarterly by an internal credit review committee.
At this time there are no credits of substance that have the
potential to become more than 90 days delinquent.
The Bank has not had nor presently has any foreign
outstandings. In addition, no known concentrations of
credit presently exist.
At September 30, 1995, the balance of other real estate was
$1,048,345 compared to $414,572 at December 31, 1994.
During the first quarter of 1995, two properties were
transferred into the account and subsequently sold during
the same quarter; one property that was on the books at
December 31, 1994 was sold during the second quarter of
1995; and during the third quarter of 1995, one property was
sold and two additional foreclosures were conducted and
booked to the account.
Deposits
At September 30, 1995, total deposits amounted to
$196,815,681 representing an increase of $6,013,905 or a
3.15% increase over total deposits at December 31, 1994.
Other Liabilities
At September 30, 1995, other liabilities totaled $2,414,660
or a $1,215,275 increase over the balance at December 31,
1994. This increase is primarily due to a deferred tax
liability on the unrealized gain in the investment portfolio
as well as an increase in accrued taxes.
Capital
The adequacy of the Company's capital is reviewed on an
ongoing basis with reference to the size, composition and
quality of the Company's resources and regulatory
guidelines. Management seeks to maintain a level of capital
sufficient to support existing assets and anticipated asset
growth, maintain favorable access to capital markets and
preserve high quality credit ratings. The capital
requirements of the Pennsylvania Department of Banking are
6%. The capital requirements of the Federal Deposit
Insurance Corporation are:
1. Regulatory capital to total assets 6%.
2. Primary capital to total assets 5-1/2%.
At September 30, 1995, regulatory capital to total assets
was 11.95% compared to 10.11% at December 31, 1994. Primary
capital to total assets at September 30, 1995 was 12.97%
compared to 11.02% at December 31, 1994.
The Federal Reserve Board, the FDIC and the OCC have issued
certain risk-based capital guidelines, which supplement
existing capital requirements. The guidelines require all
United States banks and bank holding companies to maintain a
minimum risk-based capital ratio of 8.00% (of which at least
4.00% must be in the form of common stockholders' equity).
Assets are assigned to five risk categories, with higher
levels of capital being required for the categories
perceived as representing greater risk. The required
capital will represent equity and (to the extent permitted)
nonequity capital as a percentage of total risk-weighted
assets. The risk-based capital rules are designed to make
regulatory capital requirements more sensitive to
differences in risk profiles among banks and bank holding
companies and to minimize disincentives for holding liquid
assets.
Capital is being maintained in compliance with the new risk-
based capital guidelines. The Company's Tier 1 Capital to
total risk weighted assets ratio is 17.05% and the total
capital ratio is total risk weighted assets ratio is 18.30%.
Liquidity and Interest Rate Sensitivity
The asset/liability committee addresses the liquidity needs
of the Bank to see that sufficient funds are available to
meet credit demands and deposit withdrawals as well as to
the placement of available funds in the investment
portfolio. In assessing liquidity requirements, equal
consideration is given to the current position as well as
the future outlook.
The following liquidity measures are monitored and kept
within the limits cited.
1. Net Loans to Total Assets, less than 70%
2. Net Loans to Total Deposits, less than 80%
3. Net Loans to Core Deposits, less than 85%
4. Investments to Total Assets, less than 40%
5. Investments to Total Deposits, less than 50%
6. Net Primary Liquid Assets to Total Assets, greater than
10%
7. Net Primary Liquid Assets to Total Liabilities, greater
than 10%
8. Total Liquid Assets to Total Assets, greater than 25%
9. Total Liquid Assets to Total Liabilities, greater than
25%
The Bank has maintained a liquidity level at or above the
guidelines of the FDIC and the Pennsylvania Department of
Banking. The Bank has available to it Federal Funds lines
of credit totalling $31,157,000 from correspondent banks
should the need for short-term funds arise.
The following table sets forth the Bank's interest rate
sensitivity as of September 30, 1995:
<TABLE>
<CAPTION>
AFTER ONE AFTER FIVE AFTER
WITHIN BUT WITHIN BUT WITHIN TEN
ONE YEAR FIVE YEARS TEN YEARS YEARS
<S> <C> <C> <C> <C>
Earning Assets (1) (2) $75,159 $31,612 $28,359 $73,391
Interest-bearing
liabilities (3) 81,582 61,647 941 85
Gap:
By period (6,423) (30,035) 27,418 73,306
By cumulative (6,423) (36,458) (9,040) 64,266
Earning assets:
Investments (1) 17,337 5,327 1,925 29,075
Loans (2) 57,822 26,285 26,434 44,316
Interest-bearing
liabilities: (3)
Interest-bearing
deposits $81,582 $61,647 $ 941 $ 85
Long-term borrowings 0 0 0 0
<FN>
(1) Investment balances include annual repayment
assumptions of 6%. Mortgage backed securities and
certain other securities include repayment assumptions
based on the terms of the securities.
(2) Loan balances include annual repayment assumptions
based on the projected cash flow from the loan
portfolio. The cash flow projections are based on the
terms of the credit facilities. No assumptions are
made regarding prepayment of loans. Loans are
presented net of deferred loan fees and include loans
held for resale and allowance for loan losses.
(3) The Corporation considers one-half of its regular
saving deposits to be stable core deposits, and
accordingly has classified 50% of such deposits in the
"Within One Year category" and 50% in the "After One
but Within Five years" category. All other interest-
bearing demand deposits are classified in the "Within
One Year" category and time deposits are categorized
according to scheduled maturity.
</TABLE>
In reference to the attached financial statements, all
adjustments are of a normal recurring nature pursuant to Rule 10-
01(b)(8) of Regulation S-X.
Part II. OTHER INFORMATION
Item 6. Exhibits and reports on Form 8-K.
a. Exhibits:
Number Description
(11) Statement Regarding Computation of Per Share
Earnings.
(27) Financial Data Schedule.
b. Reports: No reports on Form 8-K were filed in the
third quarter of 1995.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, the Registrant has duly caused this report to be signed on
its behalf by the undersigned thereunto duly authorized.
PENNS WOODS BANCORP, INC.
(Registrant)
Date: November 13, 1995 /s/ Ronald A. Walko
Ronald A. Walko,
Senior Vice President
(Authorized Officer)
Date: November 13, 1995 /s/ Sonya E. Hartranft
Sonya E. Hartranft,
Controller
(Principal Accounting Officer)
<PAGE>
EXHIBIT INDEX
Number Description
(11) Statement Regarding Computation of Per Share
Earnings.
(27) Financial Data Schedule.
EXHIBIT 11
<TABLE>
<CAPTION>
STATEMENT OF COMPUTATION OF EARNINGS PER SHARE
FOR THE PERIOD ENDED 9/30/95
LESS FRACTION
SHARES FRACTIONAL OF WEIGHTED
DATE OUTSTANDING RESTATEMENT SHARES YEAR SHARES
<S> <C> <C> <C> <C> <C>
1/01/95-8/31/95 844,612 1.5 40 243/273 1,127,660
9/01/95-9/30/95 1,267,964 30/273 139,337
WEIGHTED SHARES OUTSTANDING 9/30/95 1,266,997
=========
<CAPTION>
<S> <C> <C>
NET INCOME 9/30/95 2,647,746
WEIGHTED SHARES OUTSTANDING 9/30/95 1,266,997
EARNINGS PER SHARE 9/30/95 $2.11
=====
<CAPTION>
STATEMENT OF COMPUTATION OF EARNINGS PER SHARE
FOR THE PERIOD ENDED 9/30/94
LESS FRACTION
SHARES FRACTIONAL OF WEIGHTED
DATE OUTSTANDING RESTATEMENT SHARES YEAR SHARES
<S> <C> <C> <C> <C> <C>
1/01/94-9/30/94 844,612 1.5 40 273/273 1,266,878
<CAPTION>
<S> <C> <C>
NET INCOME 9/30/94 2,912,165
WEIGHTED SHARES OUTSTANDING 9/30/94 1,266,878
EARNINGS PER SHARE 9/30/94 $2.30
=====
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 9
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-01-1995
<PERIOD-END> SEP-30-1995
<CASH> 7,079
<INT-BEARING-DEPOSITS> 1,040
<FED-FUNDS-SOLD> 730
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 61,634
<INVESTMENTS-CARRYING> 2,548
<INVESTMENTS-MARKET> 0
<LOANS> 154,857
<ALLOWANCE> 2,362
<TOTAL-ASSETS> 233,470
<DEPOSITS> 196,816
<SHORT-TERM> 6,328
<LIABILITIES-OTHER> 2,415
<LONG-TERM> 0
<COMMON> 12,679
0
0
<OTHER-SE> 15,232
<TOTAL-LIABILITIES-AND-EQUITY> 233,470
<INTEREST-LOAN> 10,975
<INTEREST-INVEST> 2,833
<INTEREST-OTHER> 131
<INTEREST-TOTAL> 13,939
<INTEREST-DEPOSIT> 5,391
<INTEREST-EXPENSE> 407
<INTEREST-INCOME-NET> 8,141
<LOAN-LOSSES> 300
<SECURITIES-GAINS> 887
<EXPENSE-OTHER> 5,909
<INCOME-PRETAX> 3,563
<INCOME-PRE-EXTRAORDINARY> 3,563
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 2,675
<EPS-PRIMARY> 2.11
<EPS-DILUTED> 0
<YIELD-ACTUAL> 0
<LOANS-NON> 1,109
<LOANS-PAST> 960
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 1,995
<CHARGE-OFFS> 229
<RECOVERIES> 165
<ALLOWANCE-CLOSE> 2,362
<ALLOWANCE-DOMESTIC> 2,362
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
