<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
--------------------
FORM 10-Q
(Mark One)
/X/ Quarterly report pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
For the Quarter Ended June 30, 1995
/ / Transition report pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
------------------------
COMMISSION FILE NUMBER 2-71332
-------------------------
TWENTIETH BANCORP, INC.
(Exact name of registrant as specified in its charter)
WEST VIRGINIA
(State or other jurisdiction of
incorporation or organization)
1900 THIRD AVENUE
HUNTINGTON, WEST VIRGINIA
(Address of principal executive offices)
55-0634729
(IRS Employer Identification Number)
25703-0527
(Zip code)
(304) 526-6200
(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, and
(2) has been subject to such filing requirements for the past 90
days.
Yes X No
Indicate the number of shares outstanding of each of the issuer's classes
of common stock, as of the latest practicable date.
Class Outstanding at June 30, 1995
__________________________ ____________________________
Common Stock, $1 par value 1,800,000
<PAGE>
TWENTIETH BANCORP, INC.
FORM 10-Q
For The Quarter Ended June 30, 1995
Part I. Financial Information
Item 1. Financial Statements:
Consolidated Balance Sheets
Consolidated Statements of Income
Consolidated Statements of Changes In Shareholders' Equity
Consolidated Statements of Cash Flows
Notes To Consolidated Financial Statements
Item 2. Management's Discussion And Analysis Of Financial Condition
And Results of Operations:
Financial Commentary
Part II. Other Information
Item 6. Exhibits and Reports On Form 8-K:
There were no reports on Form 8-K filed during the three
months ended June 30, 1995.
<PAGE>
FINANCIAL STATEMENTS
TWENTIETH BANCORP, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
JUNE 30, DECEMBER 31,
1995 1994 1994
<S> <C> <C> <C>
ASSETS
Cash and Due from Banks $ 14,591,436 $ 13,757,339 $ 15,323,903
Federal Funds Sold and Securities
Purchased under Reverse Repurchase
Agreements 13,000,000 4,200,000 --
Securities Held to Maturity
(note 2) 38,685,478 47,386,286 41,522,115
Securities Available for Sale
(note 3) 42,814,420 42,046,387 40,593,569
----------- ----------- -----------
Total Investment Securities 81,499,898 89,432,673 82,115,684
----------- ----------- -----------
Loans, net of unearned discount
(note 4) 197,719,989 189,171,625 205,296,460
Less: Allowance for loan losses
(note 6) 2,000,000 1,700,000 1,825,000
----------- ----------- -----------
Net Loans 195,719,989 187,471,625 203,471,460
----------- ----------- -----------
Bank Premises and Equipment 6,788,345 7,014,788 6,860,818
Other Assets 4,365,435 4,039,219 4,899,081
----------- ----------- -----------
Total $315,965,103 $305,915,644 $312,670,946
============ ============ ============
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits:
Noninterest-Bearing 42,243,079 37,795,989 45,481,873
Interest-Bearing Demand 47,191,615 53,198,732 51,613,982
Savings 80,439,231 107,673,016 97,042,562
Time 110,235,667 75,877,917 84,925,338
----------- ----------- -----------
Total Deposits 280,109,592 274,545,654 279,063,755
Federal Funds Purchased & Securities
Sold under Repurchase Agreements
(note 5) 2,015,000 1,435,000 3,225,000
Long Term Debt 142,722 154,069 148,988
Other Liabilities 1,972,125 1,009,391 923,634
----------- ----------- -----------
Total Liabilities 284,239,439 277,144,114 283,361,377
----------- ----------- -----------
SHAREHOLDERS' EQUITY
Common Stock, $1.00 par value;
3,600,000 shares authorized,
1,800,000 issued and outstanding* 1,800,000 1,500,000 1,500,000
Surplus 7,500,000 7,500,000 7,500,000
Retained Earnings 22,439,546 20,292,862 21,559,410
Net Unrealized Gains (Losses) on
Investment Securities -
Available for Sale (13,882) (521,332) (1,249,841)
----------- ----------- -----------
Total Shareholders' Equity 31,725,664 28,771,530 29,309,569
----------- ----------- -----------
TOTAL $315,965,103 $305,915,644 $312,670,946
============ ============ ============
</TABLE>
[CAPTION]
See accompanying notes to consolidated financial statements.
* Outstanding Shares for periods prior to May 22, 1995
had Common Stock of $2.50 par value and 600,000 shares
issued and outstanding.
<PAGE>
TWENTIETH BANCORP, INC.
CONSOLIDATED STATEMENTS OF INCOME
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
JUNE 30,
1995 1994 1995 1994
<S> <C> <C> <C> <C>
INTEREST INCOME
Interest and Fees on Loans $4,574,865 $3,605,114 $9,031,404 $6,971,574
Interest on Securities:
Taxable 1,096,408 1,236,910 2,245,728 2,500,658
Tax Exempt 69,815 136,330 148,792 273,862
Other Interest Income:
Federal Funds Sold
and Repurchase Agreements 179,474 58,626 220,364 113,908
--------- --------- ---------- ---------
TOTAL INTEREST INCOME 5,920,562 5,036,980 11,646,288 9,860,002
--------- --------- ---------- ---------
INTEREST EXPENSE
Interest on Deposits 2,277,456 1,735,712 4,234,319 3,431,994
Interest on Federal Funds
Purchased and Securities Sold
under Repurchase Agreements 24,212 2,975 76,395 6,252
Interest on Long Term Debt 2,158 4,726 4,362 4,726
--------- --------- --------- ---------
TOTAL INTEREST EXPENSE 2,303,826 1,743,413 4,315,076 3,442,972
--------- --------- --------- ---------
Net Interest Income 3,616,736 3,293,567 7,331,212 6,417,030
Provision for Loan Losses
(note 6) 198,188 186,417 488,191 255,763
--------- --------- --------- ---------
NET INTEREST INCOME AFTER
PROVISION FOR LOAN LOSSES 3,418,548 3,107,150 6,843,021 6,161,267
OTHER INCOME
Trust Department Fees 102,752 86,245 231,829 187,542
Service Charges 222,482 195,256 413,547 375,712
Securities Gains (Losses) xx (188,200) xx (188,200)
Other 56,785 49,652 175,710 177,384
--------- --------- --------- ---------
TOTAL OTHER INCOME 382,019 142,953 821,086 552,438
--------- --------- --------- ---------
OTHER EXPENSE
Salaries and
Employee Benefits 1,115,336 1,042,355 2,221,140 2,067,306
Occupancy and
Equipment Expense 280,091 271,737 545,244 509,605
Other Operating Expense 1,047,101 1,058,139 2,005,054 1,963,150
--------- --------- --------- ---------
TOTAL OTHER EXPENSE 2,442,528 2,372,231 4,771,438 4,540,061
--------- --------- --------- ---------
Income Before Income Taxes 1,358,039 877,872 2,892,669 2,173,644
Applicable Income Taxes 540,502 306,608 1,172,533 766,493
--------- --------- --------- ---------
NET INCOME $ 817,537 $ 571,264 $1,720,136 $1,407,151
========= ========= ========= =========
Net Income Per Share* .46 .32 .96 .78
==== ==== ==== ====
</TABLE>
[CAPTION]
See accompaning notes to consolidated financial statements.
* All other share data has been adjusted to reflect
the three-for-one stock split/dividend on May 22, 1995.
<PAGE>
TWENTIETH BANCORP, INC.
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
<TABLE>
<CAPTION>
COMMON STOCK Shares outstanding were 600,000 June 1994 and
1,800,000 June 1995
Net
Retained Unrealized
Amount Surplus Earnings Gain (Loss) Total
<S> <C> <C> <C> <C> <C>
Balance, December
31, 1993 $1,500,000 $7,500,000 $19,305,431 xx $28,305,431
Net Income 1,407,151 1,407,151
Dividends paid (419,720) xx (419,720)
Change in Net
Unrealized Gains
(Losses) on Invest-
ment Securities -
Available for Sale (521,332) (521,332)
Treasury shares:
Acquired (94,350)
Sold 94,350
--------- --------- ---------- ---------- ----------
Balance, June
30, 1994 $1,500,000 $7,500,000 $20,292,862 $( 521,332) $28,771,530
========== ========== =========== ============ ===========
Balance, December
31, 1994 $1,500,000 $7,500,000 $21,559,410 $(1,249,841) $29,309,569
Net Income 1,720,136 1,720,136
Dividends paid (540,000) (540,000)
Change in Net
Unrealized Gains
(Losses) on Invest-
ment Securities -
Available for Sale 1,235,959 1,235,959
Treasury shares:
Acquired (562,118)
Sold 562,118
Stock Split/Dividend
(3-for-1) 300,000 (300,000) 00
--------- --------- ---------- ---------- ----------
Balance, June
30, 1995 $1,800,000 $7,500,000 $22,439,546 $( 13,882) $31,725,664
========== ========== =========== =========== ===========
</TABLE>
<PAGE>
TWENTIETH BANCORP, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE QUARTER ENDED JUNE 30, 1995 AND 1994
<TABLE>
<CAPTION>
1995 1994
<S> <C> <C>
Cash flows from operating activities:
Interest received $12,023,116 $10,492,686
Fees, commissions and other income 811,398 780,825
Bad debt recoveries 134,160 107,168
Interest paid (3,661,062) (3,284,065)
Cash paid for operating expenses (4,637,725) (4,244,448)
Income tax paid ( 897,649) (755,896)
---------- ----------
Net cash provided by operating activities $ 3,772,238 $ 3,096,270
----------- -----------
Cash flows from investing activities:
Purchase of securities to be held to maturity (5,189,233) (6,047,904)
Proceeds from maturities and early call of
securities to be held to maturity 7,810,000 13,850,931
Purchase of securities available for sale (1,966,875) (5,992,881)
Proceeds from sales of securities
available for sale -- 6,054,219
Proceeds from maturities and early call of
securities available for sale 1,580,880 842,909
Net decrease (increase) in loans 7,113,145 (7,667,619)
Capital expenditures (174,369) (447,010)
Proceeds from sale of premises and equipment -- --
Proceeds from sale of other real estate 30,251 --
---------- ----------
Net cash provided by investing activities 9,203,799 592,645
---------- ----------
Cash flows from financing activities:
Net increase (decrease) in demand deposits,
interest bearing demand deposits and savings (24,262,566) (6,470,459)
Net increase (decrease) in certificates of
deposit, individual retirement accounts,
and other time deposits 25,310,328 4,627,932
Net increase (decrease) in federal funds
purchased and securities sold under
repurchase agreements (1,210,000) (1,210,000)
Proceeds from borrowed funds 160,000
Repayment of borrowed funds ( 6,266) ( 5,931)
Payment of dividends ( 540,000) ( 419,720)
Purchase of treasury stock ( 562,118) ( 94,350)
Proceeds from sale of treasury stock 562,118 94,350
---------- ----------
Net cash provided by (used in)
financing activities ( 708,504) (3,318,178)
---------- ----------
Net increase (decrease) in cash and cash
equivalents 12,267,533 370,737
Cash and cash equivalents at beginning of year 15,323,903 17,586,602
---------- ----------
Cash and cash equivalents at end of quarter $27,591,436 $17,957,339
=========== ===========
</TABLE>
<PAGE>
Consolidated Statements of Cash Flows (continued)
Reconciliation of net income to net cash provided by operating activities:
<TABLE>
<S> <C> <C>
Net Income $ 1,720,136 $ 1,407,151
--------- ---------
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation 246,842 213,843
Amortization and accretions 323,345 604,805
Provision for bad debts 622,351 362,931
Provision for deferred income taxes 2,250 16,350
Gain on maturities of securities held to maturity -- (5,449)
Loss on sale of securities available for sale -- 193,649
Loss on sale of other real estate
and fixed assets-net 6,500 --
Decrease (increase) in other assets (306,098) 98,050
Decrease (increase) in accrued income 97,486 121,756
Increase (decrease) in accrued expenses 132,778 ( 69,970)
Increase (decrease) in income taxes payable 272,634 ( 5,753)
Increase (decrease) in reserve for interest 654,014 158,907
--------- --------
2,052,102 1,689,119
--------- ---------
$ 3,772,238 $ 3,096,270
=========== ===========
Supplemental Disclosures -
Unrealized losses on securities available
for sale:
Increase (decrease) in securities
available for sale 1,872,666 (789,897)
Increase (decrease) in deferred tax benefit (636,707) 268,565
Increase (decrease) in shareholders equity 1,235,959 (521,332)
<FN>
<F1>
Disclosure of accounting policy:
For purposes of reporting cash flows, cash and cash equivalents include cash on
hand, amounts due from banks, food coupons and federal funds sold. Generally,
federal funds are purchased and sold for one-day periods.
</FN>
</TABLE>
<PAGE>
TWENTIETH BANCORP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1. BASIS OF PRESENTATION
The condensed consolidated financial statements have been prepared in
accordance with generally accepted accounting principles for the interim
financial information and with the instructions to Form 10Q and rule 10-01
of Regulation S-X. Accordingly, they do not include all of the information
and notes required by generally accepted accounting principles for complete
financial statements. In the opinion of management, all adjustments
(consisting of normal recurring accruals) considered necessary for a fair
presentation have been included.
Operating results for the six months ended June 30, 1995 are not necessarily
indicative of the results that may be expected for the year ended December 31,
1995. For further information, refer to the consolidated financial statements
and notes thereto included in the Company's 1994 Annual Report, Proxy and 10K.
INVESTMENT SECURITIES
On January 1, 1994, Twentieth Bancorp adopted SFAS 115, "Accounting for
Certain Investments in Debt and Equity Securities," which requires Investment
Securities to be classified as either Held to Maturity or Available for Sale.
SFAS 115 changed the accounting for investment securities available for sale
from the lower of cost or market to fair value.
NOTE 2. SECURITIES - HELD TO MATURITY
June 30, 1995
The amoritized cost (carrying values) and estimated market values of securities
held to maturity at June 30, 1995 and June 30, 1994, respectively follow:
Gross Gross
Amortized Unrealized Unrealized Market
Cost Gains Losses Value
U. S. Treasury Securities 33,189,648 55,472 -- 33,245,120
Federal Agency Securities 1,952,388 21,972 -- 1,974,360
State and Political
Subdivision Securities 3,443,442 324,881 -- 3,768,323
Other Securities - Debt 100,000 -- -- 100,000
---------- ------- ------- ----------
Total $38,685,478 $402,325 $ -- $39,087,803
=========== ======== ======== ===========
June 30, 1994
U. S. Treasury Securities 40,691,495 -- 24,305 40,667,190
States and Political
Subdivision Securities 6,594,791 412,278 -- 7,007,069
Other Securities - Debt 100,000 -- -- 100,000
---------- ------- ------- ----------
Total $47,386,286 $412,278 $ 24,305 $47,774,259
=========== ======== ======== ===========
NOTE 3. SECURITIES - AVAILABLE FOR SALE
June 30, 1995
The amortized cost and estimated market value (carrying values) of securities
availabe for sale at June 30, 1995 and June 30, 1994, respectively follow:
Gross Gross
Amortized Unrealized Unrealized Fair
Cost Gains Losses Value
U. S. Treasury Securities 18,476,621 180,869 -- 18,657,490
Federal Agency Securities 24,289,522 -- 201,902 24,087,620
Other Securities - Equity 69,310 -- -- 69,310
---------- ------- ------- ----------
Total $42,835,453 $180,869 $201,902 $42,814,420
=========== ======== ======== ===========
June 30, 1994
U. S. Treasury Securities 13,345,332 -- 388,612 12,956,720
Federal Agency Securities 29,421,642 -- 401,285 29,020,357
Other Securities - Equity 69,310 -- -- 69,310
---------- ------- ------- ----------
Total $42,836,284 $ -- $789,897 $42,046,387
=========== ======== ======== ===========
<PAGE>
NOTE 4. LOANS
The Financial Accounting Standards Board (FASB) issued Statement of Financial
Accounting Standards No. 114, "Accounting by Creditors for Impairment of a Loan"
(SFAS 114) in 1993. SFAS 114 was further amended by the FASB in 1994 through
the issuance of Statement of Financial Accounting Standards No. 118.
"Accounting by Creditors for Impairment of a Loan - Income Recognition and
Disclosures" (SFAS 118). Effective January 1, 1995, SFAS 114, as amended by
SFAS 118, required that an impaired loan be measured and reported on the basis
of the present value of expected cash flows discounted at the loan's effective
interest rate, or at the fair value of the loan's collateral if the loan is
deemed "collateral dependent." Impaired loans are specifically reviewed loans
for which it is probable that the creditor will be unable to collect all amounts
due according to the terms of the loan agreement. SFAS 118 allows a creditor
to use existing methods for recognizing interest income on an impaired loan.
For Bancorp nonaccrual loans and impaired loans, interest receipts are re-
cognized as interest revenue or are applied to principal when management
believes the ultimate collectibility of principal is in doubt.
At June 30, 1995, impaired loans of $759 thousand consisted of nonaccrual loan
balances of Bancorp. The balance of impaired loans at January 1, 1995 also
totaled $759 thousand. Because the majority of loans deemed impaired during
the first six months were collateral dependent, valuations of impaired loans
did not vary materially from the values previously assigned to this population
of loans. The initial adoption of the new accounting standard did not require
an increase to Bancorp's allowance for loan losses. The impact of adopting
SFAS 114, as amended by SFAS 118, was therefore immaterial to the financial
condition and operations of Bancorp as of and for the six month period ended
June 30, 1995.
Statement of Financial Accounting Standard No. 121 (SFAS 121), "Accounting
for the Impairment of Long-Lived Assets and for Long-Lived Assets to be
Disposed Of", was issued by the Financial Accounting Standards Board in
March 1995. The Statement requires that long-lived assets and certain
identifiable intangibles to be held and used by a company be reviewed for
impairment whenever events of changes in circumstances indicate that the
carrying amount of an asset may not be recoverable. In performing the review
for recoverability, the company should estimate the future cash flows expected
to result from the use of the asset and its eventual disposition. An impair-
ment loss would be recognized if the sum of the expected future cash flows,
undiscounted, is less than the carrying amount of the asset. Measurement
of an impairment loss would be based on the fair value of the asset. The
statement also establishes standards for recording an impairment loss for
certain assets that are subject to disposal. The Statement excludes
financial instruments, long-term customer relationships of financial
institutions, mortgage and other servicing rights, and deferred tax assets.
Adoption of the new accounting standard is expected to occur on January 1,
1996. At this time, Bancorp does not expect any impact to the Corporation's
net income upon implementation of SFAS 121.
[CAPTION]
* The provision for credit losses is included in the allowance for
loan losses at June 30, 1995.
NOTE 5. FEDERAL FUNDS PURCHASED AND SECURITIES SOLD UNDER REPURCHASE
AGREEMENTS
(In thousands)
1995 1994
Federal Funds Purchased $ 900 $1,000
Securities sold under repurchase agreements 1,115 435
----- -----
Total Federal Funds Purchased and
Securities Sold Under Repurchase agreements $2,015 $1,435
====== ======
The Corporation paid $24,212 and $2,975 in interest on federal funds
purchased and securities sold under repurchase agreements in the second
quarter of 1995 and 1994, respectively.
NOTE 6. ALLOWANCE FOR LOAN LOSSES
Transactions in the consolidated allowance for loan losses for the six months
ended June 30 were:
(In thousands) 1995 1994
Beginning balance $1,825 $1,650
Charge-offs (447) (313)
Recoveries 134 107
----- -----
Net charge-offs (313) (206)
Provision for loan losses 488 256
---- -----
Net increase 175 50
---- -----
Ending balance $2,000 $1,700
====== ======
<PAGE>
TWENTIETH BANCORP, INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS
AND FINANCIAL CONDITION
PERFORMANCE SUMMARY
Twentieth Bancorp, Inc. net income for the three months ended June 30, 1995
was $817,537 or $.46 per share, based on 1,793,346 average shares outstanding
at the end of the period. This compares to $571,264 or $.32 per share for
the same period of 1994 based on 1,799,055 average shares outstanding. Net
income for the six months ended June 30, 1995 was $1,720,136 or $.96 per share,
based on 1,796,601 average shares outstanding at the end of the period. This
compares to $1,407,152 or $.78 per share for the same period of 1994, based
on 1,799,526 average shares outstanding. All 1994 share data has been adjusted
to reflect the three-for-one stock split/dividend on May 22, 1995.
In the second quarter, 1995, two significant events occurred. The first of
which was a stock split/dividend which was effected in May, 1995. Secondly,
a new nine month certificate began to be offered in April, 1995.
In addition to the growth in deposits of $5,564,000, total loans have increased
$8,548,000 since June 30, 1994. The loan-to-deposit ratio is 70.58%. Year-to-
date net income increased $313,000 to $1,720,000 for the period ending June
30, 1995 from $1,407,151 for the same period last year. Because the bond
market has rebounded in 1995, the unrealized loss reflected in the equity
section of the balance sheet has improved some $1,236,000 since the beginning
of the year. That effect added to the earnings to date have increased total
equity to $31,726.00 from $28,772,000 in 1994.
A branch application has been completed and will be considered by the
appropriate regulators in September, 1995. We hope to establish a full
function branch and Automated Teller Machine in Hamlin, West Virginia as soon
as the approvals process is obtained.
Net income increased $246,273 or 43.11% for three months ended June 30, 1995.
Total interest income increased $883,582 or 17.54%, and interest expense
increased $560,413 or 32.14% from the same period last year.
FINANCIAL CONDITION
Twentieth Bancorp's assets totaled $315,965,103 compared to $312,670,946 in
assets at December 31, 1994, and $305,915,644 at June 30, 1994 an increase
of $10,049,459 or 3.29% for the comparative quarterly periods and up $3,294,157
from year-end 1994. Loans net of unearned income increased $8,548,364 or 4.52%
compared to June 30, 1994 and decreased $7,576,471 or 3.69% from year-end
1994. The installment loans increased $9,870,931 or 15.84% from June 30, 1994,
and decreased $3,945,313 from year-end 1994. This was due to a consumer loan
push in the second half of 1994 to secure certain loan to deposit ratios.
Federal funds sold increased to $13,000,00 from 4,200,00 in June, 1994. The
securities held to maturity portfolio decreased to $38,685,478 from
$47,386,286 for the second quarter of 1995 from the same period in 1994. As
these securities matured the funds were placed in federal funds sold until
more attractive securities were available. Total deposits were up $5,563,938
or 2.03% for the comparative quarterly periods and up $1,045,837 for June 30,
1995 compared to December 31, 1994. Time deposits grew to $110,235,667 from
$75,877,917 in June 1994, and up $25,310,329 since year-end 1994. Savings
deposits decreased to $80,439,231 in the second quarter 1995 compared to
$107,673,016 for the same period in 1994 and decreased $16,603,331 since
year-end 1994. This shift in deposits was due to a new nine month certificate
of deposit being offered; the results have been positive as some $8,000,000
has been attracted from outside institutions. The largest portion of these
certificates will mature in January, 1996.
With respect to the securities held to maturity portfolio, market value
exceeded book value $402,325. At June 30, 1995 the amortized cost of
securities available for sale exceeded the market value $21,033, consisting of
$180,869 in unrealized gains and $201,902 in unrealized losses. Shareholder's
equity at June 30, 1995 reflects a $14,000 reduction for the excess, net of
tax, or amortized cost of securities available for sale over the fair value
at quarter end, compared to reductions of $521,000 at June 30, 1994 and
$1,250,000 at December 31, 1994. The net unrealized gain or loss on securities
available for sale, which is recorded as a component of shareholders' equity,
will continue to be subject to change in future periods due to fluctuations
in market value, acquistion activities, and sales, purchases, maturities and
calls of securities classified as available for sale. Management after review-
ing the portfolio, with assistance with their investment advisors, believes
securities containing unrealized losses are temporary in nature subject to
current market conditions. Twentieth Bancorp did not sell any securities
classified as available for sale in the first half of 1995.
Twentieth Bancorp purchased and sold 10,707 shares of common stock during
the first half of 1995, at an average price of $52.50 per share. Such
purchases were from shareholders wanting to sell shares and resold to new
and existing shareholders. At the Annual Meeting held on March 30, 1995, the
Shareholders voted to reduce the par value of all shares, to effect a 2 1/2
for 1 split, and to capitalize $300,000 to common stock from retained earnings.
This means that each shareholder will have three times the number of shares
previously owned - although the total value of all of ones shares would
remain the same. On May 22, 1995 the stock split/dividend was effected. The
stock par value was reduced from $2.50 to $1.00. The market value of the
common stock was reduced ratably from $52.50 to $17.50 per share. The
authorized capital was increased from $1,500,000 to $3,600,000. As a result
of these transactions common stock carrying value was increased from $1,500,000
to $1,800,000 issued and outstanding.
Twentieth Bancorp paid dividends of $.30 per share on 1,800,000 shares
outstanding totaling $540,000 in June, 1995 over $.70 per share on 600,000
shares outstanding totaling $419,720 in June, 1994. To restate the new
share data of $.23 per share in June, 1994. This represents a 30.43% increase
over the previous year's dividend.
The average quarterly volume of time deposits increased $18,399,586 from
June 1994 while the average quarterly volume of savings deposits decreased
$23,933,880 for the same period. The decrease in the amortized cost of
investment securities of $14,158,914 was primarily the result of reinvesting
in the loan portfolio. Although a quarter to quarter comparison indicates
that loan volume is up $18,641,186, loans in the first quarter reflected the
effects of the Federal Reserve's tightening efforts as loans declined
$5,057,155 since year end 1994. For the balance of 1995, deposits and loans
should stabilize.
NET INTEREST INCOME AND INTEREST MARGIN
The schedule, Comparative Operation Data, shows that Twentieth Bancorp's net
interest income on a fully tax-equivalent basis increased by $281,341 to
$3,661,090 for the second quarter of 1995 as compared to $3,379,749 earned
during the same period in 1994. The net interest margin for the second quarter
was 5.07%, an improvement of 33 basis points from the margin recorded in the
second quarter of 1994. The net interest margin for the six months ended was
5.20%, and improvement of 57 basis points from the margin recorded in the six
months ended June 30, 1994. The improvement was due to favorable changes in
the composition and yield of balance sheet earning assets, which offset higher
rates paid on deposits. The net interest margin for year-end 1994 was 4.92%.
Total earning assets yield increased to 8.26% from 7.19% for the second
quarter of 1995 over the comparable period for 1994. The average total
earning asset yield for the six months ended was 8.23% and improvement of
1.16 basis points from the yield recorded in the six months ended June 30,
1994. Total average loans increased $13,574,073 or 7.31% when compared to
1994 second quarter average balances and $17,224,615 or 9.39% for the six
months ended June 30, 1995 compared to June 30, 1994. Average installment
loans increased $15,194,217 or 24.93% in the three months ended June 30, 1995
over 1994, and $17,545,543 or 29.39% for the six months ended June 30, 1995 from
prior year totals. Funding for the loan growth came in part from reductions
in the average balances of securities as they matured, which declined
$15,753,563 for the second quarter 1995 compared to prior year balances.
Average federal funds sold increased $6,172,912 or 104.07% for the second
quarter 1995 as compared to the same period in 1994. Average federal funds
sold increased $848,951 or 12.76% to $7,505,249 for the six months ended June
30, 1995 compared to June 30, 1994. Yields paid on interest bearing
liabilities increased to 3.93% for the second quarter of 1995 as compared to
2.95% for the same period in 1994. Average total interest bearing liabilities
yield for the first six months increased to 3.71% from 2.93% compared to the
same period in 1994.
Average total earning assets increased to a balance of $287,847,307 for the
first six months of 1995 as compared to a balance of $286,093,025 for the same
period in 1994. Total average earning assets for the three months ending June
30, 1995, increased to a balance of $289,828,691 compared to a balance of
$285,835,269 for the same period in 1994. Average total interest bearing
deposits for the six months ending June 30, 1995 decreased to a balance of
$235,104,726 as compared to $238,046,142 for the same period in 1994.
Average total interest bearing deposits for the second quarter decreased to
$235,743,886 as compared to $237,240,688 for the same period in 1994. With
regards to funding sources, the rate of growth in certificates of deposits
was because of a new nine month certificate of deposit being offered in April
and May, 1995 at 6.50% and then lowered to 5.50% in June, 1995. Average time
deposits for second quarter 1995 increased $30,681,500 to $105,176,028, a
41.19% increase over second quarter 1994 average balances. Average time
deposits increased $24,574,471 for the six months ended June 30, 1995 to
$97,509,966, a 33.69% increase over the same period in 1994. This new
certificate was funded by customers transferring from savings accounts and
attracting customers from outside institutions. Average savings deposits
decreased $31,402,678 to $93,543,882, a 25.13% decrease over second quarter
1994 average balances. Average savings deposits decreased $27,688,911 for
the six months ended June 30, 1995 to $99,026,427, a 21.85% decrease over the
same period in 1994. Average non interest bearing demand deposits for the
second quarter 1995 increased $3,787,721 to $40,460,478, a 10.33% increase
over the same period in 1994. Average non interest bearing deposits for the
six months ended June 30, 1995 increased $3,835,521 to $39,935,831, a 10.62%
increased over the same period in 1994. Because the bond market has rebounded
in 1995, the unrealized loss reflected in the equity section of the balance
sheet has improved some $1,236,000 since the beginning of the year. Total
average capital for the second quarter 1995 has increased $2,278,881 to
$31,234,774, a 7.81% increase over the same period in 1994. Average total
capital has increased $1,320,805 for the six months ended June 30, 1995 to
$30,694,814, a 4.50% increase over the same period in 1994.
The yield on average loans increased 1.42 basis points from the second quarter
of 1994, to 9.24%. The yield on average loans for the six months ended
June 30, 1995 also increased 1.41 basis points over the same period in 1994.
Average yield on federal funds sold increased 1.99 basis points from the
second quarter 1995 over the same period in 1994, and 2.47 basis points for
the six months ended June 30, 1995 over the same period in 1994.
PROVISION FOR LOAN LOSSES
Twentieth Bancorp provides as an expense an amount which reflects expected
credit losses and is called the provision for loan losses, and is based on
management's evaluation of the loan portfolio. The provision for loan losses
was $198,188 for the three months ended June 30, 1995. The provision for loan
losses was $488,191 for the six months ended June 30, 1995, up from the
$255,763 reported in 1994. Net charge-offs totated $313 thousand in the first
six months of 1995, compared to $206 thousand in the comparable period in 1994.
This amount included a $175,000 increase to Allowance for Loan Losses on the
Consolidated Balance Sheets in 1995. For the same period of 1994 the increase
to allowance was $50,000.
NON-PERFORMING ASSETS
Total non-performing assets on June 30, 1995 were $2.898 million compared to
$1.291 million on June 30, 1994. Total non-performing loans were $2.674
million on June 30, 1995 compared to $1.258 million on June 30, 1994. Total
non-performing assets as a percent of total loans was 1.46% compared to .68%
for the three months ended June 1995 and 1994, respectively. Other real
estate owned increased to $224 thousand as of June 30, 1995 from $33
thousand on June 30, 1994. The closing of the Alum Creek Branch in 1994
accounts for $200 thousand placed in other real estate owned. This piece of
property was sold in July, 1995 for $175,000, resulting in a $25,000 loss to
other operating expenses.
<PAGE>
OTHER INCOME AND EXPENSES
Total other income, excluding securities transactions, increased 15.36%
from the second quarter of 1994 to the second quarter of 1995. The six months
ended June 30, 1995 increased 10.86% Trust Department income increased
$16,507 or 19.14% for the second quarter of 1995 over 1994. The six month
year to date increase of $44,287 or 23.61% for the Trust department. Service
charges increased $27,226 in the second quarter of 1995 over 1994. Service
charges for the six months ended June 30, 1995 increased $37,835 or 10.07% over
the comparable period in 1994. The security losses in June, 1994 were due to
management restructering of certain segments of its bond portfolio available
for sale to correlate with the Bancorp's future needs.
Other operating expense increased $70,297 or 2.96% for the second quarter 1995
over 1994. The six months ended increase was $231,377 or 5.10%. Control of
other expense accounts and attention to market driven deposit rates
APPLICABLE INCOME TAXES
The applicable income tax for six months ended June 30, 1995 represents
$1,170,283 in current and $2,250 in deferred taxes as compared to $750,143 in
current and $16,350 in deferred for the same period in 1994. The effective tax
rate on income before taxes decreased .65% to 40.53% in 1995 from 41.18% in
1994.
LIQUIDITY
As of June 30, 1995, the Bancorp's cash and cash equivalents totaled
$27,591,436 compared to $15,323,903 on December 31, 1994. Bancorp's securities
portfolio includes $67,706,927 in unencumbered value that could have been
converted to cash at June 30, 1995. The Financial Accounting Standards Board
has issued Statement No. 115, "Accounting for Certain Investments in Debt and
Equity Securities." This Statement, which is effective for fiscal years
beginning after December 15, 1993, addresses the accounting and reporting for
investments in debt and equity securities that have readily determinable fair
values. Held to maturity securities which Bancorp has the positive intent and
ability to hold to maturity continue to be accounted for at amortized cost.
Available for sale securities held by Bancorp are reported as fair value with
unrealized gains and losses excluded from earnings but reported in a separate
component of shareholders' equity, net of related tax effect. The Twentieth
Bancorp's adoption of SFAS 115 effected the June 30, 1995 and 1994
consolidated balance sheets by the recording of net unrealized losses
totalling $21,033 and $789,897 against their respective carrying value of
investment securities Available for Sale. Also, total shareholders' equity
was reduced by $13,882 and $521,332 for June 30, 1995 and 1994 after
recording the resulting tax benefits of $7,151 and $268,565.
SHAREHOLDERS' EQUITY
On June 30, 1995, total shareholders' equity was $31,725,664 compared to
$28,771,530 on June 30, 1994. This increase of $2,954,134 or 10.27% was
primarily due to an increase in profits retained and the effect of SFAS
115 reduction to shareholders' equity. Net Unrealized Losses
on Investment Securities of $13,882 and $521,332, respectively, which
represents the net unrealized loss (after tax effect) of the available for
sale securities for the quarters ended June 30, 1995 and 1994. On June 30,
1995 and 1994 there were no shares being held in treasury.
<PAGE>
<TABLE>
TWENTIETH BANCORP, INC.
CONSOLIDATED AVERAGE BALANCE SHEET
AND INTEREST MARGIN ANALYSIS
<CAPTION>
Three Months Ended Three Months Ended
1995 1994
Interest Average Interest Average
Average Income/ Yields/ Average Income/ Yields/
ASSETS Balances Expense Rates Balances Expense Rates
<S> <C> <C> <C> <C> <C> <C>
Earning Assets:
Loans:
Commercial * $ 75,502,375 $1,788,748 9.53% $ 73,561,086 $ 1,456,108 7.94%
Real Estate 47,613,968 1,028,470 8.66% 51,175,371 957,429 7.50%
Installment 76,150,539 1,731,978 9.12% 60,956,322 1,208,042 7.95%
----------- --------- ----------- ---------
Total Loans-net
of unearned (2,3) 199,266,852 4,588,253 9.24% 185,692,779 3,621,579 7.82%
----------- --------- ----------- ---------
Taxable 74,942,921 1,096,408 5.87% 87,603,636 1,236,910 5.66%
Tax Exempt (1) 3,514,522 105,781 12.07% 6,607,370 206,561 12.54%
----------- --------- ----------- ---------
Total
Securities (2) 78,457,443 1,202,189 6.15% 94,211,006 1,443,471 6.15%
___________ _________ ----------- ---------
Federal Funds
Sold & Securities
Purchased under
Agreements to
Resell 12,104,396 179,474 5.95% 5,931,484 58,626 3.96%
----------- --------- ----------- ----------
Total Earning
Assets 289,828,691 5,969,916 8.26% 285,835,269 5,748,925 7.19%
----------- --------- ----------- ----------
Non-Earning Assets:
Cash and Due
From Banks 10,479,856 9,376,495
Premises &
Equipment, net 6,796,268 6,987,241
Other Assets 4,495,284 3,796,594
Reserve for Loan
Losses (2,021,813) (1,672,690)
---------- -----------
Total Non-earning
Assets 19,749,595 18,487,640
---------- -----------
TOTAL ASSETS 309,578,286 304,322,909
=========== ===========
LIABILITIES AND
SHAREHOLDERS'
EQUITY
Interest Bearing
Liabilities:
Savings Deposits 93,543,882 674,659 2.89% 124,946,560 650,648 2.09%
Demand Deposits 34,767,675 208,514 2.41% 37,076,187 402,506 4.35%
Time Deposits 105,176,028 1,353,378 5.16% 74,494,528 684,660 3.69%
----------- --------- ----------- ---------
Total Savings
and Time
Deposits (2) 233,487,585 2,236,551 236,517,275 1,547,009
Demand Deposits 40,460,478 36,672,757
----------- -----------
Total Deposits 273,948,063 273,190,032
Purchased
Funds (2) 2,112,418 24,260 4.61% 567,802 2,974 2.10%
Long-Term
debt (2) 143,883 2,162 6.09% 155,611 3,139 8.09%
Other Int. Paid 46,236 xx
----------- --------- ----------- ---------
Total
Liabilities 276,204,364 2,308,826 3.93% 273,913,445 1,743,927 2.95%
Non-Interest
Bearing
Liabilities &
Capital:
Accrued Expenses
& Other 2,139,148 1,453,571
Capital 31,234,774 28,955,893
---------- -----------
Total
Non-Interest
Bearing 33,373,922 30,409,464
----------- -----------
TOTAL
LIABILITIES
& CAPITAL 309,578,286 304,322,909
=========== ===========
NET INTEREST
INCOME/MARGIN 3,661,090 5.07% 3,379,749 4.74%
========= ==== ========= ====
<FN>
<F1>
*Computed on a Fully Tax-Equivalent Basis Assuming a Tax Rate of 34%
</FN>
</TABLE>
<PAGE>
Consolidated Average Balance Sheet and Interest Margin Analysis (continued)
<TABLE>
Six Months Ended
June 30, 1995 June 30, 1994
<CAPTION>
Interest Average
Average Income/ Yields/
ASSETS Balances Expense Rates
<S> <C> <C> <C>
Earning Assets:
Loans:
Commercial(1) $ 75,801,001 $3,616,553 9.62% $ 72,179,791 $2,757,669 7.70%
Real Estate 47,544,317 1,994,205 8.46% 51,486,454 1,920,845 7.52%
Installment 77,235,543 3,446,633 9.00% 59,690,000 2,326,454 7.86%
---------- --------- ---------- ---------
Total Loans-net
of unearned (2,3) 200,580,860 9,057,391 9.11% 183,356,245 7,004,968 7.70%
----------- --------- ----------- ---------
Taxable 76,034,134 2,245,728 5.96% 89,439,810 2,500,658 5.64%
Tax Exempt (1) 3,727,065 225,442 12.20% 6,640,672 414,942 12.60%
----------- --------- ---------- ---------
Total
Securities (2) 79,761,199 2,471,170 6.25% 96,080,481 2,915,600 6.12%
----------- --------- ----------- ---------
Fed funds sold
and securities
Purchased under
agreements
to Resell 7,505,249 220,364 5.92% 6,656,298 113,908 3.45%
----------- ---------- ----------- ----------
Total Earning
Assets 287,847,307 11,748,925 8.23% 286,093,025 10,034,476 7.07%
----------- ---------- ----------- ----------
Non-Earning Assets:
Cash and Due From
Banks 10,352,510 9,395,130
Premises &
Equipment, net 6,817,851 6,957,500
Other Assets 4,599,940 4,256,593
Reserve for Loan
Losses (1,969,874) (1,664,588)
----------- ----------
Total Non-earning
Assets 19,800,428 18,944,635
----------- -----------
TOTAL ASSETS 307,647,735 305,037,660
=========== ===========
LIABILITIES AND
SHAREHOLDERS'
EQUITY
Interest Bearing
Liabilities:
Savings Deposits 99,026,427 1,426,935 2.91% 126,715,338 1,513,796 2.41%
Demand Deposits 35,469,480 420,215 2.39% 37,244,344 634,100 3.43%
Time Deposits 97,509,966 2,350,746 4.86% 72,935,495 1,301,506 3.60%
----------- --------- ----------- ---------
Total Savings
and Time
Deposits (2) 232,005,873 4,197,896 236,895,177 3,449,402
Demand Deposits 39,935,831 36,100,310
----------- -----------
Total Deposits 271,941,704 272,995,487
Purchased
Funds (2) 2,953,450 76,572 5.23% 996,685 6,284 1.27%
Long Term
Debt (2) 145,403 4,372 6.06% 154,280 4,750 6.21%
Other Int. Paid 46,236
---------- --------- ----------- ---------
Total Iterest
Bearing * 275,040,557 4,325,076 3.71% 274,146,452 3,460,436 2.93%
----------- --------- ----------- ---------
Non-Interest
Bearing
Liabilities
& Capital:
Accrued expenses
& Other 1,912,364 1,517,199
Capital 30,694,814 29,374,009
----------- -----------
Total
Liabilities 32,607,178 30,891,208
----------- -----------
TOTAL
LIABILITIES
& CAPITAL 307,647,735 305,037,660
=========== ===========
Net Interest
Income/Margin 287,847,307 7,423,849 5.20% 286,093,025 6,574,040 4.63%
=========== ========= =========
<FN>
<F1>
1 Computed on a Fully Tax-equivalent Basis Assuming a Tax Rate of 34%.
2 Indicates earning asset or interest-bearing liability.
3 Nonaccrual loans are included in the average loan balances and
income on such loans is recognized on a cash basis.
</FN>
</TABLE>
<PAGE>
<TABLE>
COMPARATIVE OPERATING DATA
(Fully Taxable Equivalent Basis)
For Three Months Ended June 30, 1995 and 1994
<CAPTION>
1995 1994 Change %
<S> <C> <C> <C> <C>
Interest Income $5,969,916 $5,123,676 $846,240 16.52%
Interest Expense 2,308,826 1,743,927 564,899 32.39
--------- --------- -------
Net Interest Income 3,661,090 3,379,749 281,341 8.32
Provision for Loan Losses 198,188 186,417 11,771 6.31
--------- --------- -------
Net Interest Income After
Provision for Loan Losses 3,462,902 3,193,332 269,570 8.44
Other Income 382,019 142,953 239,066 167.23
Other Expenses 2,442,528 2,372,231 70,297 2.96
--------- --------- -------
Income Before Income Tax 1,402,393 964,054 438,339 45.47
--------- --------- -------
Income Taxes:
Current and Deferred Taxes 540,502 306,608 233,894 76.28
Tax Equivalent Adjustment 44,353 86,182 (41,829) (48.54)
--------- --------- -------
Net Income $ 817,537 $ 571,264 $246,274 43.11
========= ========= ========
Per Share Net Income .46 .32 0.14 43.75
==== ==== ====
</TABLE>
<TABLE>
<CAPTION>
For Six Months Ended June 30, 1995 and 1994
1995 1994 Change %
<S> <C> <C> <C> <C>
Interest Income $11,748,925 $10,034,476 $1,714,449 17.09%
Interest Expense 4,325,076 3,460,436 864,640 24.99
---------- ---------- ---------
Net Interest Income 7,423,849 6,574,040 849,809 12.93
Provision for Loan Losses 488,191 255,763 232,428 90.88
---------- ---------- ---------
Net Interest Income After
Provision for Loan Losses 6,935,658 6,318,277 617,381 9.77
Other Income 821,086 552,438 268,648 48.63
Other Expenses 4,771,438 4,540,061 231,377 5.10
--------- --------- ---------
Income Before Income Tax 2,985,306 2,330,654 654,652 28.09
Income Taxes:
Current & Deferred Taxes 1,172,533 766,493 406,040 52.97
Tax Equivalent Adjustment 92,637 157,010 (64,373) (41.00)
--------- --------- ---------
Net Income $1,720,136 $1,407,151 $ 312,985 22.24
========== ========== =========
PER SHARE
Net Income .96 .78 .18 23.08
=== === ===
</TABLE>
<PAGE>
<TABLE>
FINANCIAL RATIOS AND ANALYSIS
FOR SIX MONTHS ENDED JUNE 30, 1995
<CAPTION>
1995 1994
(In thousands)
FINANCIAL RATIOS
<S> <C> <C> <C>
Net Income $1,720 $1,407 22
Return on Average Assets 1.13% .93%
Return on Average Equity 11.30% 9.66%
Dividend Payout Ratio 0.31% :1 0.30% :1
Equity to Assets 10.04% 9.41%
Capital Adequacy Ratio 10.33% 9.59%
Primary Capital Ratio 10.61% 9.91%
Total Risk Based Capital Ratio 16.38% 15.83%
Tier I Risk Based Capital Ratio 15.38% 14.93%
Leverage Ratio 9.94% 9.25%
Loans (in thousands)
Commercial, Financial and Other 75,511 73,164
Real Estate - Construction 1,372 270
Real Estate - Mortgage 45,798 49,943
Consumer 75,039 65,795
------- -------
Total Loans $197,720 $189,172
======== ========
ALLOWANCE FOR LOAN LOSSES
(in thousands)
Balance at Beginning of Period $ 1,825 $ 1,650
Amounts charged off (447) (313)
Recoveries on amounts charged off 134 107
----- -----
Net charge-offs (313) (206)
Provision for Loan and
Lease Losses 488 256
----- -----
Balance at End of Period $ 2,000 $ 1,700
======= ========
Non-Performing Assets
(in thousands)
Non-accrual Loans $ 759 $ 614
Loans 90 Days Past Due
and Still Accruing 1,915 644
----- -----
Total Non-Performing Loans 2,674 1,258
Other Real Estate Owned 224 33
----- ----
Total Non-Performing Assets $ 2,898 $ 1,291
======= ========
Non-Performing Loans % Total Loans 1.35% 0.67%
Non-Performing Assets % Total
Loans and Other Real Estate Owned 1.46% 0.68%
</TABLE>
<PAGE>
PART II OTHER INFORMATION
Item 1. Legal Proceedings - not applicable
Item 2. Changes in Securities - not applicable
Item 3. Defaults upon Senior Securities - not applicable
Item 4. Submission of matters to a vote of Security Holders -
not applicable
Item 5. Other Information - not applicable
Item 6. Exhibits and reports for 8-K - not applicable
<PAGE>
TWENTIETH BANCORP, INC.
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.
TWENTIETH BANCORP, INC.
Date: August 14, 1995 B. C. McGINNIS, III
B. C. McGINNIS, III
PRESIDENT
Date: August 14, 1995 THOMAS L. McGINNIS
THOMAS L. McGINNIS
VICE PRESIDENT
<TABLE> <S> <C>
<ARTICLE> 9
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-01-1995
<PERIOD-END> JUN-30-1995
<CASH> 14,591,436
<INT-BEARING-DEPOSITS> 0
<FED-FUNDS-SOLD> 13,000,000
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 42,814,420
<INVESTMENTS-CARRYING> 38,685,478
<INVESTMENTS-MARKET> 39,087,803
<LOANS> 197,719,939
<ALLOWANCE> 2,000,000
<TOTAL-ASSETS> 315,965,103
<DEPOSITS> 280,109,592
<SHORT-TERM> 2,015,000
<LIABILITIES-OTHER> 1,972,125
<LONG-TERM> 142,722
<COMMON> 1,800,000
0
0
<OTHER-SE> 29,925,664
<TOTAL-LIABILITIES-AND-EQUITY> 315,965,103
<INTEREST-LOAN> 9,031,404
<INTEREST-INVEST> 2,394,520
<INTEREST-OTHER> 220,364
<INTEREST-TOTAL> 11,646,288
<INTEREST-DEPOSIT> 4,234,319
<INTEREST-EXPENSE> 80,757
<INTEREST-INCOME-NET> 7,331,212
<LOAN-LOSSES> 488,191
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 4,771,438
<INCOME-PRETAX> 2,892,669
<INCOME-PRE-EXTRAORDINARY> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,720,136
<EPS-PRIMARY> 1.00
<EPS-DILUTED> 1.00
<YIELD-ACTUAL> 11.06
<LOANS-NON> 759,000
<LOANS-PAST> 1,915,000
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 1,825,000
<CHARGE-OFFS> 447,000
<RECOVERIES> 134,000
<ALLOWANCE-CLOSE> 2,000,000
<ALLOWANCE-DOMESTIC> 2,000,000
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
