secQ996
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, 1996 Commission file number
0-17077
PENNS WOODS BANCORP, INC.
Incorporated in Pennsylvania 23-2226454
Main Office 115 South Main Street
Jersey Shore, Pennsylvania, 1774
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 [ X ] NO[ ]
On September 30, 1996 there were 1,272,248 shares of the
Registrant's common stock outstanding.
PART I FINANCIAL STATMENTS
<TABLE>
<CAPTION>
PENNS WOODS BANCORP, INC.
CONSOLIDATED BALANCE SHEET
AT DATES INDICATED
September 30, December 31,
1996 1995
--------------------------------
<S> <C> <C>
ASSETS:
Cash and due from banks $9,163,915 $14,283,649
Investment securities available-for-sale 78,493,306 65,322,241
Investment Securities held-to-maturity 2,609,744 2,817,174
Federal funds sold 0 570,000
Loans, net of unearned discount 159,859,249 153,640,485
Allowance for loan losses (2,400,620) (2,353,324)
Loans, net 157,458,629 151,287,161
Bank premises and equipment 3,637,610 3,808,885
Foreclosed assets held for sale 410,458 943,108
Accrued interest receivable 1,667,476 1,717,616
Other assets 2,282,092 1,878,740
--------------------------------
TOTAL ASSETS $255,723,230 $242,628,574
================================
LIABILITIES:
Demand Deposits $27,417,395 $27,178,753
Interest-bearing demand deposits 36,265,649 37,155,122
Savings deposits 44,517,200 45,019,071
Time deposits 92,887,962 92,904,655
--------------------------------
Total deposits $201,088,206 $202,257,601
Federal funds purchased $12,360,000 $0
Securities sold under repurchase agreements 6,966,959 6,344,111
Accrued interest payable 785,608 918,841
Other Liabilities 3,109,840 3,423,217
Total liabilities --------------------------------
$224,310,613 $212,943,770
--------------------------------
SHAREHOLDERS' EQUITY:
Common stock, par value $10 per share,
10,000,000 shares authorized;
1,272,248 shares issued and outstanding
at September 30, 1996 and 10,000,000
shares authorized; 1,271,339 issued and
outstanding at December 31, 1995 $12,722,480 $12,713,390
Additional paid-in capital 4,474,192 4,453,353
Retained earnings 12,787,812 10,059,806
Net unrealized gain (loss) on securities
available for sale 1,428,133 2,458,255
--------------------------------
Total shareholders' equity $31,412,617 $29,684,804
--------------------------------
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $255,723,230 $242,628,574
================================
</TABLE>
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, 19September 30, 19Septmeber 30, 19September 30, 1995
------------------------------------------------------------------
<S> <C> <C> <C> <C>
INTEREST INCOME:
Interest and fees on loans $11,041,682 $10,975,005 $3,767,919 $3,767,229
Interest and dividends on investments: ------------------------------------------------------------------
Taxable interest 2,367,102 1,706,949 757,004 567,797
Nontaxable interest 902,886 826,627 391,332 264,438
Dividends 381,637 299,487 132,871 100,030
------------------------------------------------------------------
Total interest and dividends
on investments 3,651,625 2,833,063 1,281,207 932,265
Interest on Federal funds sold 25,331 131,150 0 64,788
------------------------------------------------------------------
Total interest income 14,718,638 13,939,218 5,049,126 4,764,282
------------------------------------------------------------------
INTEREST EXPENSE:
Interest on deposits 5,612,904 5,391,200 1,854,040 1,906,190
Interest on Federal funds purchased 162,708 65,323 125,037 58
Interest on securities sold under
repurchase agreements 229,441 145,759 78,367 60,911
Interest on other borrowings 0 195,668 0 0
------------------------------------------------------------------
Total interest expense 6,005,053 5,797,950 2,057,444 1,967,159
------------------------------------------------------------------
Net interest income 8,713,585 8,141,268 2,991,682 2,797,123
Provision for loan losses 84,000 300,015 21,000 100,005
------------------------------------------------------------------
Net interest income after provision for
loan losses 8,629,585 7,841,253 2,970,682 2,697,118
------------------------------------------------------------------
OTHER OPERATING INCOME:
Service charges 625,809 558,856 217,753 201,736
Securities gains 688,300 887,063 397,776 321,411
Other income 215,665 185,242 57,538 53,751
------------------------------------------------------------------
Total other operating income 1,529,774 1,631,161 673,067 576,898
------------------------------------------------------------------
OTHER OPERATING EXPENSES:
Salaries and employee benefits 2,697,959 3,121,486 920,633 863,121
Occupancy expense, net 356,848 360,166 109,803 114,729
Furniture and equipment expense 386,695 485,333 154,424 118,301
Other expenses 1,816,532 1,942,506 565,597 591,498
------------------------------------------------------------------
Total other operating expenses 5,258,034 5,909,491 1,750,457 1,687,649
------------------------------------------------------------------
INCOME BEFORE TAXES 4,901,325 3,562,923 1,893,292 1,586,367
INCOME TAX PROVISION 1,295,627 888,177 535,855 545,113
------------------------------------------------------------------
NET INCOME $3,605,698 $2,674,746 $1,357,437 $1,041,254
==================================================================
EARNINGS PER SHARE 2.84 2.11 1.07 0.82
==================================================================
TOTAL SHARES OUTSTANDING 1,272,248 1,266,997 1,272,248 1,266,997
==================================================================
(ADJUSTED FOR 50% STOCK DIVIDEND)
</TABLE>
PENNS WOODS BANCORP, INC.
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1996
<TABLE>
<CAPTION>
UNREALIZED
APPRECIATION
ADDITONAL (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, 1995 $12,713,390 $4,453,353 $10,059,806 $2,458,255 $29,684,804
net income for the nine months ended
September 30, 1996 3,605,698 3,605,698
Dividends declared and paid (877,692) (877,692)
Net change in unrealized gain on martetable
equity securities (1,030,122) (1,030,122)
Stock options exercised 9,090 20,839 29,929
---------------------------------------------------------
Balance, September 30, 1996 $12,722,480 $4,474,192 $12,787,812 $1,428,133 $31,412,617
=============================================================
</TABLE>
PENNS WOODS BANCORP, INC.
CONSOLIDATED STATEMENT
OF CASH FLOWS
FOR THE QUARTERS ENDED SEPTEMBER 30, 1996 AND SEPTEMBER 30, 1995
<TABLE>
<CAPTION>
SEPTEMBER 30, SEPTEMBER 30,
1996 1995
--------------------------------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income $3,605,698 $2,674,746
Adjustments to reconcile net income to net cash
provided by operating activities
Depreciation 256,194 258,412
Provision for loan losses 84,000 300,015
Amortization of investment security premiums 14,603 29,761
Accretion of investment security discounts (42,840) (82,407)
Securities gains (688,300) (887,063)
Salary expense recognized in relation to exercise of
stock options 0 74,265
Increase in all other assets 177,457 (851,178)
Increase (decrease) in all other liabilities (446,610) 1,391,966
--------------------------------
Net cash provided by operating activities 2,960,202 2,908,517
--------------------------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of securities available-for-sale (36,002,645) (32,560,319)
Proceeds from sale of securities available-for-sale 21,980,284 34,408,708
Purchase of securities held-to-maturity (647,599) (50,000)
Proceeds from calls and maturities of securities held-to-maturity 862,071 4,934,931
Net increase in loans (6,255,468) (3,429,145)
Decrease in foreclosed assets 532,650 (633,773)
Acquisition of bank premises and equipment (84,919) (367,062)
--------------------------------
Net cash provided by (used in) investing activities (19,615,626) 2,303,340
--------------------------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Net increase in interest-bearing deposits (1,408,037) 5,113,517
Net increase in noninterest-bearing deposits 238,642 900,388
Net increase (decrease) in sec. sold under repurch. agree. 622,848 524,470
Increase (decrease) in other borrowed funds 12,360,000 (7,170,000)
Repayment of long-term borrowings 0 (7,000,000)
Dividends paid (877,692) (756,142)
Stock options exercised 29,929 0
--------------------------------
Net cash (used in) provided by financing activities 10,965,690 (8,387,767)
--------------------------------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (5,689,734) (3,175,910)
CASH AND CASH EQUIVALENTS, BEGINNING 14,853,649 12,025,441
--------------------------------
CASH AND CASH EQUIVALENTS, ENDING $9,163,915 $8,849,531
================================
</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, 1995.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
EARNINGS SUMMARY
Interest Income
For the nine months ended September 30, 1996,
total interest income increased by $779,420
or 5.59% compared to the same period in 1995.
This increase is due to a slight increase
of $66,677 in interest and fees on loans,
an increase in total interest and dividends
on investments of $818,562 and a $105,819
decrease in income on federal funds sold.
The slight increase in interest and fees on
loans of $66,677 was primarily due to an
increase in loan volume during this period
of $6,218,764. The decrease in interest on
federal funds sold of $105,819 was due to a
decrease in the amount of funds sold.
Interest and dividends on investments
increased primarily due to an increase in
taxable interest of $660,153 and a slight
increase in nontaxable interest on
investments of $76,259. In addition, there
was an increase in dividend income of
$82,150 due to an increase of holdings in
the equity portfolio.
Interest Expense
For the nine months ended September 30, 1996,
total interest expense increased $207,103 or
3.57% over the same period in 1995. This
increase can be attributed to the interest paid
on interest-bearing deposits due to the volume
of deposits held during the first nine months
of 1996 compared to the volume held during the
first nine months of 1995.
Provision for Loan Losses
The provision for losses for the nine
months ended September 30, 1996 decreased
$216,015 from the corresponding period in
1995. This decrease reflects a decline in
anticipated losses on small business loans
for the first nine months of 1996 and the
fiscal year.
As of the third quarter of 1996, charge offs
exceeded recoveries by $36,000 compared to
the third quarter of 1995 when charge offs
exceeded recoveries by $64,000. Provisions
to date total $84,000 as compared to
provisions through September 30, 1995 of
$300,015.
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 any 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 .61 times at September 30, 1996 an
improvement in coverage from the .76 times at
December 31, 1995. The decrease in
non-performing loans occurred throughout the
entire portfolio. 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, 1996 decreased $101,387 or
6.22% from the same time period in 1995.
This decrease is due to the net effect of
an increase in service charges collected of
$66,953, a decrease in securities gains
realized of $198,763 and an increase in
other income of $30,423.
The increase in service charges was
a result of an increase in service charges
collected on deposit accounts. Gains taken
on the sale of two foreclosed assets during the
second quarter of 1996 was the contributing
factor to the increase in other income. The
primary decrease in other operating income
was due to the decline in securities gains
recognized of $198,763. 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, 1996
total other operating expenses decreased $651,457
or 11.02% over the same period in 1995.
Employee salaries and benefits
decreased $423,527. When comparing the
amount of salaries and employee benefits
expense incurred during the first nine months
of 1996 to the same period in 1995, it should
be noted that in the first quarter of 1995,
salaries and employee benefits was charged
to satsify the terms of two Lock Haven Savings
Bank executives' employment agreements in
connection with the merger. This expense did
not reoccur in 1996, therefore, this reduction,
netted with increases in salary levels, accounts
for the overall $423,527 decrease in salaries
and employee benefits.
Occupancy expense decreased $3,318 and
furniture and equipment expense decreased
$98,638. The minimal decrease in occupancy
expense is the net result of an increase in the amount
of maintenance and repairs expense incurred
and a decrease in rental
expense due to the expiration of the lease for
one of the branch offices that was closed after
the merger with Lock Haven Savings Bank in
April, 1995.
The $98,638 decrease in furniture and
equipment expense can be attributed to the
closing of two branch offices after the merger.
For the nine months ended September 30, 1996
total other operating expenses decreased $651,457
or 11.02% over the same period in 1995.
Expenses included under the other expenses
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. Decreases in
other expenses totalled $125,974. During the
first quarter of 1995, expenses were incurred
that related to the acquisition of Lock Haven
Savings Bank. These expenses were non-
recurring, and therefore, did not reoccur during
the first quarter of 1996. This reduction
coupled with an increase in FDIC expense,
due to a Special Assessment on SAIF-
assessable deposits called for under the
recently enacted "Deposit Insurance Funds
Act of 1996", are the primary factors contributing
to the $125,974 decrease in other expenses.
Provision for Income Taxes
Provision for income taxes for the nine
months ended September 30, 1996 resulted in an
effective income tax rate of 26.43%
compared to 24.93% for the corresponding
period in 1995. The increase noted is
primarily a result of an increase in taxable
interest on investments, a reduction in the provision
for loan losses and lower operating expenses.
ASSET/LIABILITY MANAGEMENT
Assets
At September 30, 1996, cash, federal funds sold,
and investment securities totalled
$90,266,965, or a net increase of $7,273,901
over the corresponding balance at December
31, 1995. Investment securities increased,
$12,963,635, while cash and federal funds
sold decreased $5,119,734 and $570,000,
respectfully. During this period, net loans
increased by $6,171,468 to $157,458,629.
The purchase of agency and municipal
securities accounts for the increase in
investment securities from December 31, 1995
to September 30, 1996.
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
$2,400,620 at September 30, 1996, an increase of
$47,296 over the balance at December 31,
1995. For the nine months ended September 30,
1996, the provision for loan losses totalled
$84,000. As a percent of loans, the
allowance for loan losses at September 30, 1996
totalled 1.50% versus 1.53% at December 31,
1995.
Loans accounted for on a non-accrual basis
totalled $938,000 and $1,009,000 at September
30, 1996 and December 31, 1995 respectively.
Accruing loans, contractually delinquent 90
days or more were $517,000 at September 30,
1996 and $791,000 at December 31, 1995.
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 .61
times at Sepember 30, 1996 and .76 times at
December 31, 1995. 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, 1996, the balance of other real
estate was $410,458 compared to $943,108 at
December 31, 1995. Two properties were
transferred into the account during the first
quarter of 1996, and one property was transferred
into the account during the third quarter. In addition,
three properties that were on the books at
December 31, 1995, were sold during the first
six months of 1996.
Deposits
At September 30, 1996 total deposits amounted to
$201,088,206 representing a decrease of
$1,169,395 or a .58% decrease from total
deposits at December 31, 1995.
Other Liabilities
At September 30, 1996, other liabilities
totalled $3,109,840 or a $313,377 decrease
over the balance at December 31, 1995. This
decrease is primarily due to a decrease in
accrued taxes and accrued expenses.
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, 1996, regulatory capital to
total assets was 12.28% compared to 12.23%
at December 31, 1995. Primary capital to
total assets at September 30, 1996 was 13.22%
compared to 13.20% at December 31, 1995.
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 18.93% and the
total capital ratio to total risk weighted
assets ratio is 20.18%.
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, 70% maximum
2. Net Loans to Total Deposits, 85% maximum
3. Net Loans to Core Deposits, 90% maximum
4. Investments to Total Assets, 40% maximum
5. Investments to Total Deposits, 50% maximum
6. Total Liquid Assets to Total Assets, 25% minimum
7. Total Liquid Assets to Total Liabilities, 25% minimum
8. Volatility Liability Dependence Ratio, 10% maximum
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 $15,509,900 from correspondent banks.
In addition, the Bank has an agreement with the Federal Home Loan
Bank of Pittsburgh that enables the Bank to receive advances up to
$76,216,000 for terms of 1 to 120 days under the Federal Home Loan
Bank's "Repo Plus" credit program. All of the funding mentioned is
available to the Bank, should the need for short-term funds arise.
The following table sets forth the Bank's interest rate
sensitivity as of September 30, 1996:
<TABLE>
<CAPTION>
AFTER ONE AFTER THREE AFTER
WITHIN BUT WITHIN BUT WITHIN FIVE
ONE YEAR THREE YEARS FIVE YEARS YEARS
<S> <C> <C> <C> <C>
Earning assets: (1) (2)
Investment securities ( $ $ $ $ 42,512
Loans (2) 72,670 37,948 35,393 16,076
--------------------------------------------------------------
Total earnings assets 81,420 53,733 45,116 58,588
Interest bearing liabilities:
Deposits (3) 87,904 48,964 19,724 17,003
Borrowings 18,020 370 270 2,627
--------------------------------------------------------------
Total interest bearing lia 105,924 49,334 19,994 19,630
Net non-interest bearing
funding (4) 7,705 11,733 8,429 16,108
--------------------------------------------------------------
Total net funding sources 113,629 61,067 28,423 35,738
Excess assets (liabilities (32,209) (7,334) 16,693 22,850
Cumulative excess
assets (liabilities) (32,209) (39,543) (22,850) -
<FN>
(1) Investment balances reflect estimated prepayments
on mortgage-backed securities.
(2) Loan balances include annual repayment assumptions
based on projected cash flow from the loan portfolio.
The cash flow projections are based on the terms of
the credit facilities and estimated prepayments on
fixed rate mortgage loans. Loans include loans held
for resale.
(3) Adjustments to the interest sensitivity of Savings,
NOW and MMDA account balances reflect managerial
assumptions based on historical experience,
expected behavior in future rate environments and
JSSB's positioning for these products.
(4) Net non-interest bearing funds is the sum of non-interest
bearing liabilities and shareholders' equity minus
non-interest earning assets and reflect managerial
assumptions as to the appropriate investment
maturities for these sources.
</FN>
</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 1996.
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, 1996
--------------------------------
Theodore H. Reich, President
Date: November 13, 1996
--------------------------------
Sonya E. Hartranft, Secretary
Description
- --------------------------
(11) Statement Regarding Computation of Per Share Earnings
(27) Financial Data Schedule
EXHIBIT 11
<TABLE>
<CAPTION>
STATEMENT OF COMPUTATION OF EARNING PER SHARE
FOR THE PERIOD ENDED 9/30/96
LESS FRACTION
SHARES FRACTIONAL OF WEIGHTED
DATE OUTSTANDING RESTATEMENT SHARES YEAR SHARES
- ----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1/01/96-1/03 1,271,339 - - 3/274 13,920
1/04/96-6/02 1,271,528 - - 151/274 700,732
6/03/96-6/10 1,271,903 - - 8/274 37,136
6/11/96-9/30 1,272,248 - - 112/274 520,043
WEIGHTED SHARES OUTSTANDING 9/30/96 1,271,831
================
<CAPTION>
<S> <C> <C>
NET INCOME 9/30/96 $3,605,698
WEIGHTED SHARES OUTSTANDING 9/30/96 1,271,831
EARNINGS PER SHARE 9/30/96 $2.84
================
<CAPTION>
STATEMENT OF COMPUTATION OF EARNING 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>
1/01/95-8/31 844,612 1.5 40 243/273 1,127,660
9/01/95-9/30 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 $2,674,746
WEIGHTED SHARES OUTSTANDING 9/30/95 1,266,997
EARNINGS PER SHARE 9/30/95 $2.11
================
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 9
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> SEP-30-1996
<CASH> 9127
<INT-BEARING-DEPOSITS> 37
<FED-FUNDS-SOLD> 0
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 78493
<INVESTMENTS-CARRYING> 2610
<INVESTMENTS-MARKET> 0
<LOANS> 159859
<ALLOWANCE> 2401
<TOTAL-ASSETS> 157459
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0
0
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</TABLE>
