FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934.
For the quarter ended: March 31, 1995
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934.
For the transition period from __________ to __________.
STATE BANCORP, INC.
(Exact name of registrant as specified in its charter)
NEW YORK 11-2846511
---------- ------------
(I.R.S. Employer Identification Number)
699 Hillside Avenue, New Hyde Park, NY 11040
---------------------------------------- -----------
(Address of principal executive offices) (Zip Code)
(516) 437-1000
----------------
(Registrant's telephone number, including area code)
Not Applicable
------------------
(Former name, former address and former fiscal year, if changed
since last report)
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:
3,760,369 shares of common stock outstanding as of
April 25, 1995.
<TABLE>
ITEM 1 - FINANCIAL STATEMENTS
STATE BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
MARCH 31, 1995 AND DECEMBER 31, 1994 (UNAUDITED)
ASSETS: 1995 1994
<S> <C> <C>
CASH & DUE FROM BANKS $13,817,477 $19,866,956
FEDERAL FUNDS SOLD AND SECURITIES PURCHASED UNDER
AGREEMENTS TO RESELL 0 5,100,000
CASH AND CASH EQUIVALENTS 13,817,477 24,966,956
SECURITIES:
HELD TO MATURITY (APPROXIMATE MARKET VALUE -
$130,518,764 IN 1995 AND $130,014,812 IN 1994) 134,677,111 136,356,799
AVAILABLE FOR SALE 79,891,954 78,801,673
TOTAL SECURITIES 214,569,065 215,158,472
LOANS - NET OF ALLOWANCE FOR POSSIBLE CREDIT LOSSES 247,275,288 250,216,424
($5,254,283 IN 1995 AND $4,928,521 IN 1994)
BANK PREMISES AND EQUIPMENT - NET 2,853,237 2,719,814
OTHER ASSETS 11,005,719 12,299,053
TOTAL ASSETS $489,520,786 $505,360,719
LIABILITIES:
DEPOSITS:
DEMAND $64,511,340 67,336,288
SAVINGS 194,097,946 173,935,240
TIME 136,056,192 136,053,074
TOTAL DEPOSITS 394,665,478 377,324,602
FEDERAL FUNDS PURCHASED 3,300,000 16,000,000
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE 44,467,565 74,916,295
OTHER BORROWED FUNDS 8,000,000
ACCRUED EXPENSES, TAXES AND OTHER LIABILITIES 1,302,046 949,352
TOTAL LIABILITIES 451,735,089 469,190,249
STOCKHOLDERS' EQUITY:
COMMON STOCK, $5.00 PAR VALUE,
AUTHORIZED 10,000,000 SHARES; ISSUED
3,756,179 IN 1995 AND 3,752,819 IN 1994 18,780,895 18,764,095
SURPLUS 13,130,715 13,114,916
RETAINED EARNINGS 6,230,929 5,201,989
UNREALIZED NET LOSS ON SECURITIES AVAILABLE
FOR SALE (NET OF DEFFERED INCOME TAX BENEFIT
OF $253,601 IN 1995 AND $647,097 IN 1994) (356,842) (910,530)
TOTAL STOCKHOLDERS' EQUITY 37,785,697 36,170,470
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $489,520,786 $505,360,719
</TABLE>
(1)
<PAGE>
<TABLE>
ITEM 1 - FINANCIAL STATEMENTS (CONTINUED)
STATE BANCORP AND SUBSIDIARY
CONSOLIDATED STATEMENT OF EARNINGS
FOR THE THREE MONTHS ENDED MARCH 31,1995 AND 1994 (UNAUDITED)
THREE MONTHS
<S> <C> <C>
1995 1994
INTEREST INCOME:
LOANS $5,860,842 $4,382,474
FEDERAL FUNDS SOLD AND SECURITIES
PURCHASED UNDER AGREEMENTS TO RESELL 126,146 180,559
SECURITIES HELD TO MATURITY AND
SECURITIES AVAILABLE FOR SALE:
U.S. TREASURY SECURITIES 398,439 332,946
STATES AND POLITICAL SUBDIVISIONS 560,141 417,412
MORTGAGE-BACKED SECURITIES 1,805,068 1,669,173
OTHER SECURITIES 185,853
TOTAL INTEREST INCOME 8,936,489 6,982,564
INTEREST EXPENSE:
TIME CERTIFICATES OF DEPOSIT OF $100,000 OR MORE 1,183,383 546,368
OTHER DEPOSITS AND TEMPORARY BORROWINGS 2,895,047 2,061,497
TOTAL INTEREST EXPENSE 4,078,430 2,607,865
NET INTEREST INCOME 4,858,059 4,374,699
PROVISION FOR POSSIBLE CREDIT LOSSES 375,000 750,000
NET INTEREST INCOME AFTER PROVISION
FOR POSSIBLE CREDIT LOSSES 4,483,059 3,624,699
OTHER INCOME:
SERVICE CHARGES ON DEPOSIT ACCOUNTS 274,897 202,935
NET SECURITY (LOSSES) GAINS (41,443) 675
OTHER OPERATING INCOME 112,889 74,501
TOTAL OTHER INCOME 346,343 278,111
INCOME BEFORE OPERATING EXPENSES 4,829,402 3,902,810
OPERATING EXPENSES:
SALARIES AND OTHER EMPLOYEE BENEFITS 1,859,197 1,622,024
OCCUPANCY 327,238 303,059
EQUIPMENT 124,642 119,810
DEPOSIT ASSESSMENT FEES 205,989 237,389
AMORTIZATION OF INTANGIBLES 159,367 175,413
OTHER OPERATING EXPENSES 688,706 558,562
TOTAL OPERATING EXPENSES 3,365,139 3,016,257
INCOME BEFORE INCOME TAXES 1,464,263 886,553
PROVISION FOR INCOME TAXES 435,323 226,483
NET INCOME $1,028,940 $660,070
EARNINGS PER COMMON SHARE $0.27 $0.18
WEIGHTED AVERAGE NUMBER OF
COMMON SHARES OUTSTANDING 3,755,694 3,714,064
</TABLE>
(2)
<PAGE>
<TABLE>
ITEM 1 - FINANCIAL STATEMENTS (CONTINUED)
STATE BANCORP, INC. AND SUBSIDIARY
STATEMENTS OF CONSOLIDATED CASH FLOWS
FOR THE THREE MONTHS ENDED MARCH 31,1995 AND 1994 (UNAUDITED)
<S> <C> <C>
OPERATING ACTIVITIES: 1995
NET INCOME $1,028,940 $660,070
ADJUSTMENTS TO RECONCILE NET INCOME TO NET
CASH PROVIDED BY (USED IN ) OPERATING ACTIVITIES:
PROVISION FOR POSSIBLE CREDIT LOSSES 375,000 750,000
DEPRECIATION AND AMORTIZATION OF BANK PREMISES AND EQUIPMENT 89,743 87,139
AMORTIZATION OF INTANGIBLES 159,367 175,413
AMORTIZATION OF NET PREMIUM ON SECURITIES 271,093 367,227
NET SECURITY LOSSES (GAINS) 41,443 (675)
DECREASE (INCREASE) IN OTHER ASSETS, NET 740,471 (272,592)
INCREASE IN ACCRUED EXPENSES, TAXES
& OTHER LIABILITIES 352,694 652,324
NET CASH PROVIDED BY OPERATING ACTIVITIES 3,058,751 2,418,906
INVESTING ACTIVITIES:
PROCEEDS FROM MATURITIES OF SECURITIES HELD TO MATURITY 3,841,923 5,438,489
PURCHASES OF SECURITIES HELD TO MATURITY (2,324,355) (17,803,405)
PROCEEDS FROM SALES OF SECURITIES AVAILABLE FOR SALE 18,075,111 6,838,567
PROCEEDS FROM MATURITIES OF SECURITIES AVAILABLE FOR SALE 5,952,443 11,340,000
PURCHASES OF SECURITIES AVAILABLE FOR SALE (24,321,067) (16,885,752)
DECREASE (INCREASE) IN LOANS - NET 2,566,136 (2,123,991)
PURCHASES OF BANK PREMISES & EQUIPMENT (223,166) (23,697)
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES 3,567,025 (13,219,789)
FINANCING ACTIVITIES:
INCREASE IN DEMAND & SAVINGS DEPOSITS 17,337,758 4,679,122
INCREASE (DECREASE) IN TIME DEPOSITS 3,118 (11,687,694)
(DECREASE) INCREASE IN FEDERAL FUNDS PURCHASED (12,700,000) 8,475,000
DECREASE IN SECURITIES SOLD UNDER AGREEMENTS
TO REPURCHASE (30,448,730) (21,436,450)
INCREASE IN OTHER BORROWED FUNDS 8,000,000 0
PROCEEDS FROM SHARES ISSUED UNDER DIVIDEND REINVESTMENT PLAN 31,752 23,853
PROCEEDS FROM THE EXERCISE OF STOCK OPTIONS 847 0
NET CASH USED IN FINANCING ACTIVITIES (17,775,255) (19,946,169)
NET DECREASE IN CASH AND CASH EQUIVALENTS (11,149,479) (30,747,052)
CASH AND CASH EQUIVALENTS - JANUARY 1 24,966,956 42,451,340
CASH AND CASH EQUIVALENTS - MARCH 31 $13,817,477 $11,704,288
SUPPLEMENTAL DATA:
INTEREST PAID $4,136,176 $2,641,126
TAXES PAID $87,780 $389,890
</TABLE>
(3)
<PAGE>
<TABLE>
ITEM 1 - FINANCIAL STATEMENTS (CONTINUED)
STATE BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
FOR THE THREE MONTHS ENDED MARCH 31, 1995 AND 1994 (UNAUDITED)
<S> <C> <C> <C> <C> <C>
UNREALIZED
NET (LOSS) GAIN
ON SECURITIES
COMMON RETAINED AVAILABLE
STOCK SURPLUS EARNINGS FOR SALE TOTAL
BALANCE, JANUARY 1, 1995 $18,764,095 $13,114,916 $5,201,989 ($910,530) $36,170,470
NET INCOME 1,028,940 1,028,940
SHARES ISSUED UNDER DIVIDEND REINVESTMENT
PLAN (3,260 SHARES AT $9.74 PER SHARE) 16,300 15,452 31,752
STOCK OPTIONS EXERCISED 500 347 847
NET CHANGE IN UNREALIZED NET LOSS ON
SECURITIES AVAILABLE FOR SALE 553,688 553,688
BALANCE, MARCH 31, 1995 $18,780,895 $13,130,715 $6,230,929 ($356,842) $37,785,697
BALANCE, JANUARY 1, 1994 $16,870,255 $11,066,551 $5,913,437 $865,005 $34,715,248
NET INCOME 660,070 660,070
SHARES ISSUED UNDER DIVIDEND REINVESTMENT
PLAN (2,449 SHARES AT $9.74 PER SHARE) 12,245 11,608 23,853
NET CHANGE IN UNREALIZED NET GAIN ON
SECURITIES AVAILABLE FOR SALE (637,775) (637,775)
BALANCE, MARCH 31, 1994 $16,882,500 $11,078,159 $6,573,507 $227,230 $34,761,396
<FN>
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
FINANCIAL STATEMENT PRESENTATION
In the opinion of the management of State Bancorp, Inc. (the "Company"), the preceding unaudited consolidated
financial statements contain all adjustments, consisting of normal accruals, necessary for a fair presentation of
its consolidated financial condition as of March 31, 1995 and December 31, 1994 and its consolidated results
of operations and changes in cash flows and stockholders' equity for the three months ended March 31, 1995 and 1994.
For further information, refer to the consolidated financial statements and footnotes thereto included in the Company's
annual report on Form 10-K. Certain amounts have been reclassified to conform with the current year presentation.
STOCKHOLDERS' EQUITY
Common shares issued have been adjusted to reflect a 10% stock dividend issued on July 5, 1994.
(4)
<PAGE>
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
EARNINGS PER SHARE
Earnings per share are computed based on the weighted average number of common shares outstanding
after giving retroactive effect to stock dividends. The impact of the assumed exercise of stock options is immaterial
or antidilutive in all periods presented.
UNREALIZED NET (LOSS) GAIN ON SECURITIES AVAILABLE FOR SALE
Securities available for sale are stated at estimated market value and unrealized gains and losses are excluded
from earnings and reported as a separate component of stockholders' equity until realized. Securities held to
maturity are stated at amortized cost. Management designates each security, at the time of purchase, as either
available for sale or held to maturity depending upon investment objectives, liquidity needs and intent.
ALLOWANCE FOR POSSIBLE CREDIT LOSSES
Activity in the allowance for possible credit losses for the three months ended March 31, 1995 and 1994
is as follows:
1995 1994
Balance, January 1 $4,928,521 $4,725,033
Provision charged to income 375,000 750,000
Charge-offs, net of recoveries
of $19,221 and $38,885 (49,238) (592,872)
Balance, March 31 $5,254,283 $4,882,161
Effective January 1, 1995, the Company adopted Statements of Financial
Standards No. 114 ("SFAS No. 114"), "Accounting by Creditors for Impairment
of a Loan," and No. 118 ("SFAS No. 118"), "Accounting by Creditors for
Impairment Recognition and Disclosures." A loan is consisdered impaired under
SFAS No. 114 when, based on current information and events, it is probable
that the lender will not be able to collect all the principal and interest
due under the contractual terms of the loan. Due to the nature of the
Company's loans, the adoption of SFAS No. 114 and SFAS No. 118 did not have a
material effect on the Company's results of consolidated operations or
financial condition during the first quarter of 1995. As of March 31, 1995,
total impaired loans amounted to $6,279,707. As a result of the Company's
evaluation of impaired loans, an allowance for credit losses of $912,655 was
established for $4,048,891 of the total impaired loans with the balance of
impaired loans requiring no specific allowance according to SFAS No. 114.
For the quarter ended March 31, 1995, the total average impaired loan balance
was $6,480,615.
Interest received on nonaccrual loans is either applied against
principal or reported as income, according to management's judgement as to
the collectibility of the principal. Interest for impaired restructured loans
is accrued in accordance with their revised terms. Total interest income
recognized for impaired nonaccrual and restructured loans during the three
months ended March 31, 1995 was $ 14,809.
</FN>
</TABLE>
(5)
<PAGE>
ITEM 2. - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
1. Material Changes in Financial Condition - Total assets of the Company
decreased by $15.8 million or 3.1% to $489.5 million at
March 31, 1995, when compared to December 31, 1994. A decline of $11.1 million
in cash and cash equivalents accounted for virtually all of the Company's asset
reduction. Total loans outstanding also declined by $2.9 million or 1.2% due
primarily to normal portfolio amortization. The investment securities portfolio
was largely unchanged since year-end 1994.
At March 31, 1995, total deposits increased by $17.3 million to $394.7 million
versus December 31, 1994. This increase was mainly due to a $20.2 million
expansion in savings deposits, largely resulting from higher municipal money
market balances. The Company's municipal finance department continues to expand
its relationships with local Towns and School Districts in Nassau and Suffolk
counties, as evidenced by the first quarter growth in deposits. Due to the
aforementioned increase in deposit balances, total borrowed funds declined by
$35.1 million, principally securities sold under agreements to repurchase.
During the first quarter of 1995, the Company was approved for membership in
the New York Federal Home Loan Bank (FHLB). This source of market rate funding
will be utilized by the Company, as needed, for both short-term liquidity
purposes as well as to selectively match-fund fixed rate loan commitments. At
March 31, 1995, the Company had $8.0 million in overnight FHLB borrowings
outstanding.
First quarter 1995 average assets advanced by $15.6 million or 3.2% to $496.9
million from 1994's first quarter. Increases in loans (up $20.7 million or
9.0%) and investment securities (up $4.2 million or 2.1%) were the principal
reasons for the growth in assets during the first quarter of 1995. Funding this
growth were increases in demand deposits, certificates of deposit over $100,000
and retail time deposits in the one- to two-year maturity range. The Company's
Prosperity Savings product, introduced in January 1995, has thus far been well
received and continues to attract new accounts to each of our branches.
At March 31, 1995, the Company maintained capital adequacy ratios significantly
in excess of those necessary for it to be classified as a "well capitalized"
institution pursuant to the provisions of the Federal Deposit Insurance
Corporation Improvement Act of 1991 (FDICIA). The following table (2-1)
summarizes the Company's capital ratios as of March 31, 1995 and compares them
to current regulatory guidelines and December 31 and March 31, 1994 actual
results. There are no current plans for acquisitions which would have a
material impact on these ratios.
(6)
<PAGE>
ITEM 2. - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
<TABLE>
TABLE 2-1
<S> <C> <C> <C>
Tier I capital/ Total Capital/
Tier I Risk-Weighted Risk-Weighted
Leverage Assets Assets
Regulatory Minimum 3.00%-5.00% 4.00% 8.00%
Ratios as of:
March 31, 1995 7.26% 12.49% 14.27%
December 31, 1994 6.75% 11.83% 13.51%
March 31, 1994 6.61% 11.51% 13.29%
Regulatory Criteria for
a "Well Capitalized"
Institution 5.00% 6.00% 10.00%
</TABLE>
The Company's liquidity policy emphasizes adequate, but not excessive,
liquidity and the protection of net interest income from the effect of adverse
movements in interest rates and the shape of the interest rate yield curve.
Throughout the first three months of 1995, the Company's liquidity position
remained stable and well within acceptable industry standards. At March 31,
1995, the Company had access to $17 million in informal lines of credit
extended by correspondent banks to be utilized, if needed, for short-term
funding purposes. In addition, the Company had approximately $22.5 million in
securities available to be pledged to secure repurchase agreements or Federal
Reserve Discount Window borrowings as well as $17 million in a FHLB overnight
line of credit available to be drawn down.
2. Material Changes in Results of Operations - Net income for the three
months ended March 31, 1995 was $1,029,000, a 55.9% increase versus the
comparable 1994 period. The 1995 earnings improvement was attributable to
higher net interest income, increased other income and a lower provision for
credit losses.
The higher level of net interest income, up 11.0% to $4.9 million, resulted
from an expansion of the Company's earning asset base, primarily commercial
loans and commercial mortgages, coupled with a 41 basis point widening of the
net interest rate spread to 4.26% in 1995. Other income, excluding the impact
of securities transactions, rose by 39.8% in 1995 due to increased deposit
service charges, higher letter of credit fees and improved annuity commission
income.
(7)
<PAGE>
Total operating expenses grew by 11.6% during the first quarter of 1995, mainly
due to increases in salaries and employee benefits arising from growth in staff
in the lending group and product support areas. In addition, occupancy costs
increased due to normal rent escalation clauses contained in existing leases
coupled with a modest increase in leased space at the Company's Lake Success
Regional Lending facility. Despite the increase in operating expenses
previously described, the Company's operating efficiency ratio (total operating
expenses as a percentage of fully taxable equivalent net interest revenue,
excluding securities transactions) was 60% for the first quarter of 1995 versus
62% a year ago. As stated in the 1994 Annual Report to Shareholders, it is the
Company's goal to reduce this ratio to 55% in 1995 as part of its efforts to
improve efficiencies and, ultimately, stockholder value.
Nonperforming assets totaled $9.6 million at March 31, 1995, a decline of $1.1
million versus December 31, 1994. This reduction was principally the result of
a lower level of restructured, accruing loans (down $1.8 million). Although
classified as nonperforming for reporting purposes, restructured loans continue
to accrue and pay interest in accordance with their revised terms. When
compared to March 31, 1994, nonperforming assets were down by $2.5 million,
principally the result of a lower level of nonaccrual loans secured by real
estate. Management of the Company anticipates further improvement in the level
of nonperforming loans during 1995 as workout efforts are nearing resolution on
several credits. Continued improvement in the volume of classified assets
during 1995 has resulted in a $375 thousand reduction in the provision for
possible credit losses versus 1994. The allowance for possible credit losses
amounted to $5.3 million or 2.08% of total loans at March 31, 1995 versus $4.9
million and 2.10%, respectively, at the comparable 1994 date. The allowance for
credit losses as a percentage of nonperforming assets improved to 54.6% from
45.8% and 40.3% at December 31, 1994 and March 31, 1994, respectively. A
further review of the Company's nonperforming assets may be found in Table 2-3
following this analysis.
(8)
<PAGE>
<TABLE>
ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS (CONTINUED)
MARCH 31, 1995
TABLE 2-2 LIQUIDITY AND INTEREST RATE SENSITIVITY
($ IN THOUSANDS) SENSITIVITY TIME HORIZON
<S> <C> <C> <C> <C> <C>
Noninterest
INTEREST - SENSITIVE ASSETS : <F1> 0 - 6 Months 6-12 Months Over 1 Year Sensitive Total
Loans <F2> $173,965 $12,375 $58,903 $7,287 $252,530
Securities Held to Maturity <F3> 33,374 9,619 91,683 134,677
Securities Available for Sale 12,578 19,975 46,519 1,430 80,502
Unrealized Net Loss on Securities
Available for Sale (610) (610)
Total Interest-Sensitive Assets 219,307 41,969 197,105 8,717 467,099
Cash and Due from Banks 13,817 13,817
All Other Assets <F6> 4,302 1,711 2,592 8,605
Total Assets $237,426 $43,680 $197,105 $11,309 $489,521
INTEREST - BEARING LIABILITIES : 1)
Savings Accounts <F4> $17,576 $17,576 $70,306 $0 $105,458
Money Fund and Now Accounts <F5> 58,967 3,823 25,850 0 88,640
Time Deposits 66,091 30,645 39,320 0 136,056
Total Interest-Bearing Liabilities 142,634 52,044 135,476 0 330,154
Securities Sold Under Agreements to Repurchase
Federal Funds Purchased, and Other Borro 55,768 55,768
All Other Liabilities, Equity & Demand De 276 771 49 102,503 103,599
Total Liabilities and Equity $198,678 $52,815 $135,525 $102,503 $489,521
Cumulative Interest-Sensitivity Gap $38,748 $29,613 $91,193 $0 $0
Cumulative Interest-Sensitivity Ratio 119.5 % 111.8 % 123.6 % 100.0 % 100.0 %
Cumulative Interest-Sensitivity Gap
As a % of Interest-Sensitive Ass 16.3 % 10.5 % 19.1 % -- % -- %
<FN>
<F1> Allocations to specific interest sensitivity periods are based on the earlier of the repricing or maturity date.
<F2> Nonaccrual loans are shown in the non-interest sensitive category.
<F3> Estimated principal reductions have been assumed for mortgage-backed securities based upon their current constant
prepayment rates.
<F4> Savings deposits are assumed to decline ratably over a three-year period.
<F5> Now accounts are assumed to decline ratably over a two-year period.
<F6> Other Assets and Liabilities are shown according to payment schedule or reasonable estimate.
</FN>
</TABLE>
( 9 )
<PAGE>
<TABLE>
ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS (CONTINUED)
TABLE 2 - 3
STATE BANCORP, INC.
ANALYSIS OF NONPERFORMING ASSETS AND THE ALLOWANCE FOR CREDIT LOSSES
MARCH 31, 1995 VERSUS DECEMBER 31, 1994 AND MARCH 31, 1994
(DOLLARS IN THOUSANDS)
PERIOD ENDED:
<S> <C> <C> <C>
NONPERFORMING ASSETS BY TYPE 3/31/95 12/31/94 3/31/94
NONACCRUAL LOANS:
SECURED BY REAL ESTATE $3,689 $3,182 $6,524
COMMERCIAL & INDUSTRIAL 3,473 3,359 3,237
ALL OTHER 125 166 38
SUBTOTAL NONACCRUAL LOANS 7,287 6,707 9,799
RESTRUCTURED, ACCRUING LOANS 1,843 3,608 2,304
OTHER REAL ESTATE 493 454 0
TOTAL NONPERFORMING ASSETS $9,623 $10,769 $12,103
LOANS 90 DAYS OR MORE PAST DUE
AND STILL ACCRUING $716 $1,162 $2,741
TOTAL LOANS OUTSTANDING $252,530 $255,230 $232,647
TOTAL STOCKHOLDERS' EQUITY $37,786 $36,170 $34,761
QUARTER ENDED:
ANALYSIS OF THE ALLOWANCE FOR
CREDIT LOSSES 3/31/95 12/31/94 3/31/94
BEGINNING BALANCE $4,929 $5,604 $4,725
ADD: PROVISION 375 375 750
LESS: NET CHARGE-OFFS 50 1,050 593
ENDING BALANCE $5,254 $4,929 $4,882
KEY RATIOS AT PERIOD-END:
ALLOWANCE AS A % OF TOTAL LOANS 2.08% 1.93% 2.10%
NONACCRUAL LOANS AS A % OF TOTAL LOANS 2.89% 2.63% 4.21%
NONPERFORMING ASSETS AS A % OF TOTAL
LOANS AND OTHER REAL ESTATE 3.80% 4.21% 5.20%
NONPERFORMING ASSETS AS A % OF
STOCKHOLDERS' EQUITY AND THE ALLOWANCE
FOR CREDIT LOSSES 22.36% 26.20% 30.53%
ALLOWANCE FOR CREDIT LOSSES AS A %
OF NONACCRUAL LOANS 72.10% 73.49% 49.82%
ALLOWANCE FOR CREDIT LOSSES AS A %
OF NONPERFORMING ASSETS 54.60% 45.77% 40.34%
</TABLE>
( 10 )
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 9
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1994
<PERIOD-END> MAR-31-1995
<CASH> 13817477
<INT-BEARING-DEPOSITS> 0
<FED-FUNDS-SOLD> 0
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 79891954
<INVESTMENTS-CARRYING> 134677111
<INVESTMENTS-MARKET> 130014812
<LOANS> 252529571
<ALLOWANCE> 5254283
<TOTAL-ASSETS> 489520786
<DEPOSITS> 394665478
<SHORT-TERM> 55767565
<LIABILITIES-OTHER> 1302046
<LONG-TERM> 0
<COMMON> 18790895
0
0
<OTHER-SE> 19004802
<TOTAL-LIABILITIES-AND-EQUITY> 37785697
<INTEREST-LOAN> 5860842
<INTEREST-INVEST> 2949501
<INTEREST-OTHER> 126146
<INTEREST-TOTAL> 8936489
<INTEREST-DEPOSIT> 3738474
<INTEREST-EXPENSE> 4078430
<INTEREST-INCOME-NET> 4858059
<LOAN-LOSSES> 375000
<SECURITIES-GAINS> (41443)
<EXPENSE-OTHER> 3365139
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