FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
Quarterly Report Under Section 13 or 15 (d)
of the Securities Exchange Act of 1934
For Quarter Ended December 31, 1995
Commission file number 2-87246
THE FARMERS BANCORP, FRANKFORT, INDIANA
(Exact name of registrant as specified in its charter)
INDIANA 35-1565713
(State of incorporation) (I.R.S. Employer
Identification No.)
P.O. Box 129, Frankfort, Indiana
(Address of principal executive offices)
46041-0129
(Zip Code)
317-654-8731
(Registrant's telephone number, including area code)
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 DECEMBER 31, 1995
common stock, no par value 577,058
Page 1 of 18
FORM 10-Q
INDEX
Part I. Financial Information: Page
Item 1. Financial Statements:
Consolidated Statements of Condition 3-4
Consolidated Statements of Income 5-6
Consolidated Statements of Changes in
Stockholders' Equity 7
Consolidated Statements of Cash Flows 8-9
Notes to Consolidated Financial Statements 10
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 11-16
Part II. Other Information:
Item 1. Legal Proceedings 17
Item 2. Changes in Securities 17
Item 3. Defaults upon Senior Securities 17
Item 4. Submission of Matters to a Vote of Security Holders 17
Item 5. Other Information 17
Item 6. Exhibits and Reports on Form 8-K 17
Signatures 18
Page 2 of 18
PART I, FINANCIAL INFORMATION
ITEM 1: FINANCIAL STATEMENT
THE FARMERS BANCORP
CONSOLIDATED STATEMENTS OF CONDITION
(Dollars in Thousands)
ASSETS
Dec 31 June 30
1995 1995
Cash and due from banks 10222 8585
Federal funds sold 4300 6800
Money market investments 5000 3700
------ ------
Total cash and cash equivalents 19522 19085
Available-for-sale securities 20238 12181
Investment securities 22161 28833
Loans held for sale 164 863
Total loans 159566 155777
Allowance for loan losses -2735 -2348
------ ------
Net loans 156831 153429
Premises and equipment 4656 4326
Accrued income and other assets 7533 7315
------ ------
Total Assets 231105 226032
====== ======
LIABILITIES
Deposits
Demand 23678 22038
Savings 69536 58343
Time, $100,000 and over 15956 14593
Other time 79286 80580
------ ------
188456 175554
Short-term borrowings 12402 20691
Other borrowings 4537 5174
Accrued interest payable 1007 831
Other liabilities 1077 961
------ ------
Total Liabilities 207479 203211
Page 3 of 18
CONSOLIDATED STATEMENTS OF CONDITION (cont.)
SHAREHOLDERS' EQUITY
Common stock, (no par value- 600,000 shares authorized
and 577,058 shares issued and outstanding) 2885 2885
Additional paid-in capital 5101 5101
Retained earnings 15559 14753
Net unrealized gain on available-for-sale
securities (net of tax) 81 82
------ ------
Total Shareholders' Equity 23626 22821
------ ------
Total Liabilities & Shareholders' Equity 231105 226032
====== ======
See accompanying notes to consolidated financial statements
Page 4 of 18
PART I, FINANCIAL INFORMATION
ITEM 1: FINANCIAL STATEMENT
THE FARMERS BANCORP
CONSOLIDATED STATEMENTS OF INCOME
(Dollars in Thousands except Per Share Amounts)
Three Months Ended Six Months Ended
December 31 December 31
1995 1994 1995 1994
------ ------ ------ ------
Interest Income:
Interest and fees on loans 3655 3257 7307 6511
Interest on securities:
Taxable 508 610 1018 1289
Tax exempt 137 120 273 261
Interest on short-term investments 250 171 459 184
----- ----- ----- -----
Total Interest Income 4550 4158 9057 8245
Interest Expense: ----- ----- ----- -----
Interest on deposits 1864 1628 3710 3136
Interest on short-term borrowings 154 107 316 197
Interest on other borrowings 67 45 143 85
----- ----- ----- -----
Total Interest Expense 2085 1780 4169 3418
----- ----- ----- -----
Net Interest Income 2465 2378 4888 4827
Provision for loan losses 120 0 240 119
----- ----- ----- -----
2345 2378 4648 4708
Other income: ----- ----- ----- -----
Trust fees 60 28 121 47
Service charge income 177 154 358 331
Security gains (losses) 5 0 5 0
Other 161 120 259 244
----- ----- ----- -----
Total Other Income 403 302 743 622
----- ----- ----- -----
Page 5 of 18
STATEMENTS OF INCOME (cont.)
Other expenses:
Salaries and employee benefits 1012 903 1916 1802
Occupancy expense 144 138 290 258
Equipment expense 142 128 283 260
Other operating expenses 496 592 968 1274
----- ----- ----- -----
Total Other Expense 1794 1761 3457 3594
----- ----- ----- -----
Income Before Income Tax 954 919 1934 1736
Less: Income taxes 328 312 666 576
----- ----- ----- -----
Net Income 626 607 1268 1160
Per share data: ===== ===== ===== =====
Net income per share 1.08 1.05 2.20 2.01
===== ===== ===== =====
Dividends per share 0.40 0.38 0.80 0.76
===== ===== ===== =====
See accompanying notes to consolidated financial statements
Page 6 of 18
PART I, FINANCIAL INFORMATION
ITEM 1: FINANCIAL STATEMENT
THE FARMERS BANCORP
CONSOLIDATED STATEMENTS OF CHANGES
IN SHAREHOLDERS' EQUITY
(Dollars in Thousands)
1995 1994
-------- -------
Balance - June 30 22,821 21,191
Net Income 1,268 1,160
Dividends (462) (439)
Change in net unrealized gain on
available-for-sale securities (1) (120)
-------- -------
Balance - December 31 23,626 21,792
======== ========
See accompanying notes to consolidated financial statements
Page 7 of 18
PART I, FINANCIAL INFORMATION
ITEM I: FINANCIAL STATEMENT
THE FARMERS BANCORP
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in Thousands)
Six Months Ended December 31
CASH FLOWS FROM OPERATING ACTIVITIES 1995 1994
---- ----
Net income 1268 1160
Adjustments to reconcile net income to net cash
from operating activities 1290 -1834
------ ------
Net cash from operating activities 2558 -674
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from maturities and principal repayments on
available-for-sale securities 1391 4981
Purchases of available-for-sale securities -4447 -1500
Proceeds from maturities and principal repayments
on investment securities 7666 4353
Purchase of investment securities -6032 -3171
Loans made to customers, net of principal
collections thereon -3642 -4343
Net change in interest-bearing balances with
financial institutions 0 -1500
Purchase of life insurance policies 0 0
Property and equipment expenditures -571 -771
------ ------
Net cash from investing activities -5635 -1951
CASH FLOWS FROM FINANCING ACTIVITIES
Net increase/(decrease) in deposits 12902 6719
Net increase/(decrease) in short term borrowings -8289 -4783
Proceeds from other borrowings 0 1332
Repayment of other borrowings -637 -124
Dividends paid -462 -439
------ ------
Net cash from financing activities 3514 2705
------ ------
NET CHANGE IN CASH AND CASH EQUIVALENTS 437 80
Page 8 of 18
CONSOLIDATED STATEMENTS OF CASH FLOWS (cont.)
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 19085 8158
CASH AND CASH EQUIVALENTS AT
END OF PERIOD 19522 8238
====================
See accompanying notes to consolidated financial statements
Page 9 of 18
PART I FINANCIAL INFORMATION
ITEM 1: FINANCIAL STATEMENTS
THE FARMERS BANCORP
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 1995
NOTE 1- ACCOUNTING POLICIES
Except for required accounting changes (see Note 2), the significant
accounting policies followed by The Farmers Bancorp, Frankfort, Indiana
("Bancorp") and its consolidated subsidiary, The Farmers Bank, Frankfort,
Indiana ("Bank") for interim financial reporting are consistent with the
accounting policies followed for annual financial reporting. All adjustments
which are, in the opinion of management, necessary for a fair presentation of
the results for the periods reported have been included in the accompanying
unaudited consolidated financial statements and all such adjustments are of a
normal recurring nature.
NOTE 2 - ACCOUNTING CHANGE
In May, 1993, the Financial Accounting Standards Board issued Financial
Accounting Standard (FAS) No. 114, "Accounting By Creditors For Impairment of
a Loan". FAS No. 114 as amended by FAS No. 118 requires that allowances for
loan losses on impaired loans be determined using the present value of
estimated future cash flows of the loan, discounted at the loans's effective
interest rate. A loan is considered to be impaired when it is probable that
all principal and interest amounts will not be collected according to the loan
contract. FAS No. 114 and No. 118 are effective for fiscal year beginning
after December 15, 1994. The Bancorp adopted FAS No. 114 and No. 118, as
required, on July 1, 1995. Accordingly, on July 1, 1995, management
identified $1,234,000 of loans as impaired and allocated $215,000 of the
Bank's $2.3 million reserve for loan losses for those loans. At December 31,
1995, management has identified $1,555,000 of loans as impaired and allocated
$185,000 of the Bank's $2.7 million reserve for loans losses for those loans.
Page 10 of 18
PART I FINANCIAL INFORMATION
ITEM 2: MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
THE FARMERS BANCORP
December 31, 1995
FINANCIAL CONDITION:
Total assets increased 2.24 percent from June 30, 1995 to December 31, 1995,
and totaled $231,105,000 at period end. During the six months ended December
31, 1995, $10,479,000 was used to purchase investments. However, during the
same period, $9,057,000 of investments matured, were repaid or were called
prior to their maturity. As a result, total investments increased $1,385,000
or 3.38 percent. The security gain of $5,000 was due to an investment being
called. The following table presents, in thousands, the amortized cost and
fair value of investments:
DECEMBER 31, 1995 Amortized Gross Gross
Cost Unrealized Gains Unrealized Losses Fair Value
Investment Securities $22,161 $414 $ (48) $22,527
Available-for-sale
Securities 20,104 181 (47) 20,238
JUNE 30, 1995
Investment Securities 28,833 416 (205) 29,044
Available-for-sale
Securities 12,047 161 (27) 12,181
In December 1995, pursuant of new accounting guidance, the Bancorp transferred
$5,010,000 of investment securities to the available-for-sale category. These
investments were primarily corporate notes. Other assets totaled $7,533,000
at December 31, 1995, and include insurance policies with a current cash
surrender value of $4,278,000 that were purchased in conjunction with the
formation of deferred compensation and death benefit programs.
Other borrowings decreased to $4,537,000 and consist primarily of Federal Home
Loan Bank advances which were $3,936,000 at December 31, 1995. The Bank
utilized this source to fund certain commercial real estate loans. These
advances require annual principal payments, and have a final maturity of
September, 2000. The Bank may occasionally utilize this source of credit to
maintain liquidity, as well as to fund specific loans. In addition, the Bank
entered into a lease purchase arrangement during 1994. For financial
reporting purposes, the lease is considered to be a capital lease and other
borrowings include the remaining present value of future lease payments of
$601,000.
Page 11 of 18
RESULTS OF OPERATIONS:
The Bancorp reported net income, for the first six months of the fiscal year
ending June 30, 1996 of $1,268,000, as compared to $1,160,000 for the prior
year. Earnings per share were $2.20 and $2.01, respectively, based on an
average of 577,058 shares outstanding for the six months ended December 31,
1995 and December 31, 1994. The factors that most affected 1996's
performance, as compared to 1995 are: increasing loan demand, a shift in mix
of earning assets from investments at lower yields to loans at higher yields,
decreased FDIC expense, and lower expenses resulting from the conversion to an
in-house computer system.
Total interest income was $9,057,000 for the six months ended December 31,
1995, compared to $8,245,000 for the six months ended December 31, 1994, an
increase of 9.85 percent. Loans, including those held for sale, increased
$7,810,000, or 5.14 percent, from December 31, 1994 to December 31, 1995.
Interest and fees on loans totaled $7,307,000 for the six months ended
December 31, 1995, compared to $6,511,000 for the six months ended December
31, 1994, an increase of $796,000, or 12.23 percent. Investments decreased
$3,593,000, or 7.81 percent, from December 31, 1994 to December 31, 1995, and
interest income on investments decreased by $259,000 as a result of decreased
volume and yield on investments. Total interest expense was $4,169,000 for
the six months ended December 31, 1995, compared to $3,418,000 for the same
period in 1994, an increase of $751,000, or 21.97 percent. Total interest
bearing deposits and repurchase agreements increased $8,402,000, or 4.98
percent from December 31, 1994 to December 31, 1995. Interest bearing
transaction account balances increased $6,872,000 from December 31, 1994 to
December 31, 1995, and time deposits outstanding increased $5,535,000 for the
same period. Repurchase agreements decreased approximately $4,005,000 or
24.41 percent, from December 31, 1994 to December 31, 1995, as not as many
corporate customers utilized the Bank's Sweep Agreement.
Average earning assets increased to $216,683,000 during the six months ended
December 31, 1995. This represents an approximate increase of 6.00 percent
compared to $204,419,000 for the six months ended December 31, 1994. The
tax-equivalent yield on average earning assets was 8.53 percent for the six
months ended December 31, 1995, compared to 8.20 percent for the six months
ended December 31, 1994. Total interest expense to average interest bearing
liabilities was 4.54 percent for the six months ended December 31, 1995,
compared to 3.48 percent for the six months ended December 31, 1994. This
results in a tax-equivalent net interest margin (net tax-equivalent interest
income divided by average earning assets) of 4.66 percent and 4.72 percent for
the six months ended December 31, 1995 and 1994, respectively. The increase
in average earning assets offset the decline in margin, and resulted in net
interest income increasing by $61,000, or 1.26 percent. The decrease in
interest margin is a trend that management anticipates will slowly continue.
The provision for loan losses increased $121,000 or 101.68 percent to $240,000
for the six months ended December 31, 1995, compared to $119,000 for the six
months ended December 31, 1994. Net chargeoffs (recoveries) for the six
months ended December 31, 1995 totaled $(147,000). Net chargeoffs
(recoveries) by loan type aggregated $(178,000) for commercial and
agricultural loans, $24,000 for consumer loans, $0 for real estate loans, and
$7,000 for credit card loans. On December 31, 1995, the allowance for loan
losses totaled $2,735,000 or 1.71 percent of loans, compared to $2,348,000 or
1.50 percent of loans on June 30, 1995, and $2,789,000 or 1.84 percent of
loans at December 31, 1994. The provision is determined by management based
Page 12 of 18
RESULTS OF OPERATIONS (cont.)
upon a detailed review of the risk factors affecting the loan portfolio,
including changes in the portfolio's size and mix, past loan loss experience,
and the financial condition of borrowers in the prevailing economic
environment. Reserves are allocated based upon the Bank's historical loss
experience, adjusted for recent loss trends, the economic environment, current
levels of non-performing loans, and management's expectations for the future.
The Bancorp's Loan Review function develops a quarterly "watch list" report
representing loans with more than a normal degree of risk. These credits are
reviewed and, as needed, specific allocations of the reserve are made for
specific loans to provide for potential loss exposure. Effective July 1,
1995, the Bank adopted FAS 114. This new accounting standard requires
reserves for loans designated as "impaired" to be determined based upon the
present value of estimated future cash flows or the present value of
collateral securing the loans as opposed to undiscounted values. Accordingly,
management has designated $1,555,000 of loans as impaired at December 31, 1995
and allocated $185,000 of the allowance for loan losses to such loans, as
compared to $1,163,000 and $215,000 respectively as of September 30, 1995.
Management has historically reviewed individual problem credits and allocated
reserves based on discounted collateral values, when appropriate.
Accordingly, the adoption of FAS 114 did not significantly affect management's
analysis of the adequacy of the reserve for loan losses or materially increase
the amount of the allowance allocated to specific problem credits. A summary
of management's calculation of the adequacy of the Bank's loan loss reserve is
presented below for both December 31, 1995 and December 31, 1994.
December 31,
1995 1994
Specific Allocations:
Allocated to impaired loans $ 185,000 $ -0-
Allocated to other loans 438,000 1,190,000
Allocated to types of loans 643,000 732,000
---------- ----------
1,266,000 1,922,000
Unallocated 1,469,000 867,000
---------- ----------
ACTUAL BALANCE OF RESERVE $2,735,000 $2,789,000
========== ==========
Page 13 of 18
RESULTS OF OPERATIONS (cont.)
The Bancorp received lower levels of paybacks from most of its agricultural
customers from the 1995 crop season. This was due to unfavorable weather
conditions during the summer. Management continues to monitor and evaluate
individual credits to forecast expected levels of loan repayment, collateral
values and attendant loss exposure.
Non-performing loans, consisting of non-accrual loans, restructured loans and
those over 90 days past due, decreased to $1,986,000 at December 31, 1995,
compared to $2,491,000 at June 30, 1995. Non-performing loans at December 31,
1995 represented 1.24 percent of total loans and 72.61 percent of the Reserve
for Loan Losses. The following table shows the composition of non-performing
loans at both period ends.
December 31, June 30,
1995 1995
Real Estate Loans $ 165,000 (2) $ 47,000
Consumer Loans 173,000 22,000
Commercial and Agricultural 1,648,000 (3) 2,422,000 (1)
---------- ----------
$1,986,000 $2,491,000
========== ==========
Notes:
1. Includes five agricultural loans totaling $1,173,000 on non-accrual, two
agricultural credits past due more than 90 days in the amount of
$341,000, two commercial loans past due more than 90 days totaling
$200,000, four restructured agricultural loans totaling $658,000,
and one restructured commercial loan in the amount of $50,000.
2. Includes two residential mortgages totaling $82,000 on non-accrual and
three residential mortgages totaling $83,000 past due more than 90
days.
3. Includes six agricultural loans totaling $1,177,000 on non-accrual, one
commercial loan past due more than 90 days in the amount of $8,000,
three restructured agricultural loans totaling $415,000 and one
commercial restructured loan in the amount of $48,000.
Page 14 of 18
RESULTS OF OPERATIONS (cont.)
Non-interest income increased 19.45 percent or $121,000 to $743,000 for the
six months ended December 31, 1995, compared to $622,000 for the six months
ended December 31, 1994. Other income consists of gains on the sale of
mortgage loans, commissions on credit life insurance sales, and safe deposit
box rent.
Non-interest expense decreased 3.81 percent or $137,000 and totaled $3,457,000
for the six months ended December 31, 1995, compared to $3,594,000 for the six
months ended December 31, 1994. Salaries and employee benefits increased 6.33
percent or $114,000, to $1,916,000. Occupancy expense increased $32,000 or
12.40 percent and totaled $290,000 for the six months ended December 31, 1995.
One-time real estate and property tax refunds were received in the quarter
ended September 30, 1994 which explains why the total expenses were lower
during that time period. Other operating expenses decreased by 24.02 percent
or $306,000 for the six months ended December 31, 1995 as compared to December
31, 1994. This decrease is attributable to lower expenses resulting from the
conversion to an in-house computer system and a reduction in FDIC expense.
Tax expense for the six months ended December 31, 1995 was $666,000, compared
to $576,000 for the prior year, an increase of $90,000 or 15.63 percent, due
to increased levels of earnings before tax.
LIQUIDITY:
Bancorp's liquidity is a measurement of its ability to raise cash when needed
without an adverse impact on profits. Primary sources of asset liquidity are
securities maturing or having a call feature within one year, time deposits in
other banks, federal funds sold, term funds sold, and banker's acceptances.
All of these sources combined totaled $17,235,000 at December 31, 1995. In
addition, the Bancorp has $34,000 in student loans which are committed to be
sold when their deferment period ends and $130,000 in mortgage loans being
held for sale into the secondary market. The factors which have and will
continue to affect the general liquidity of the Bancorp are increasing loan
demand and the continued offering of a deposit instrument based primarily on
money market rates. All of these factors have contributed to the liquidity
ratio (net cash, short term investments and other marketable assets to
volatile liabilities) of 21.89 percent on December 31, 1995. At December 31,
1995 Bancorp had unfunded loan commitments of $34,069,000, primarily available
balance on customer lines of credit, and outstanding letters of credit of
$495,000. However, management expects many of these will expire without being
used. In addition, the Bancorp intends to continue the sale of newly
originated fixed rate residential mortgages into the secondary market for the
foreseeable future.
Page 15 of 18
LIQUIDITY: (cont.)
The asset/liability committee continues to review the matching of loan demand
with deposits, and maturities of assets and liabilities to help ensure the
level of liquidity remains satisfactory. The asset/liability committee has
managed the rate sensitive assets and liabilities during the first six months
of fiscal 1996, and at December 31, 1995, the Bancorp's one year gap position
was slightly negative.
CAPITAL RESOURCES:
The Bank and Bancorp are subject to regulations established by their
respective regulators, which require the maintenance of established levels of
capital and, as a result, limit the amount of dividends which may be paid by
the companies. The ability of Bancorp to pay dividends depends primarily upon
the ability of the Bank to pay dividends to the Bancorp. The Bank is
regulated by the Indiana Department of Financial Institutions and the FDIC,
while the Bancorp is subject to the regulations issued by the Federal Reserve
Board. These regulations establish minimum levels of Tier I (as defined)
capital to total assets (the leverage ratio) and minimum levels of Tier I and
Total Capital (as defined) to risk-based assets. Also, FDIC regulations
establish various levels of capital compliance. Under these regulations, a
"well capitalized" financial institution must maintain a leverage ratio of at
least 5 percent, a Tier I risk-based capital ratio of at least 6 percent and a
total risk-based capital ratio of at least 10 percent. Institutions which do
not meet these guidelines are subject to higher deposit insurance assessments
and, in certain cases, operational restrictions. Presented below are the
Bancorp's actual capital ratios as of December 31, 1995:
Tier I Capital $23,506,000
Total Capital $25,861,000
Risk Weighted Assets $188,018,000
Leverage Ratio 10.17%
Risk-based Capital; Tier I 12.50%
Total Risk-based Capital 13.75%
On October 9, 1995, the Bancorp declared a $.40 per share quarterly dividend,
totaling $231,000, payable November 15, 1995 to shareholders of record as of
October 9, 1995. In addition, on January 8, 1996 the Bancorp declared a $.40
per share quarterly dividend totaling $231,000, payable February 15, 1996 to
shareholders of record as of January 8, 1996. The book value of common stock
on December 31, 1995 was $40.94 per share, based on 577,058 shares
outstanding.
Page 16 of 18<PAGE>
PART II OTHER INFORMATION
THE FARMERS BANCORP
December 31, 1995
Item 1. LEGAL PROCEEDINGS
The Bancorp is not a party to any material pending legal proceedings before
any court, regulatory authority, administrative agency or other tribunal.
Further, the Bancorp is not aware of the threat of any such proceeding.
As a part of its ordinary course of business, the Bank is a party to several
lawsuits involving a variety of claims and in the collection of delinquent
accounts. All such litigation is incidental to the Bank's business. No
litigation is pending or, to the Bank's knowledge, threatened in which the
Bank faces potential loss or exposure which would have a material adverse
effect upon the financial condition of the Bank. The Bancorp and the Bank are
not involved in any administrative or judicial proceedings arising under any
Federal, State or Local provisions which have been enacted or adopted to
regulate the discharge of materials into the environment or otherwise relating
to the protection of the environment.
Item 2. CHANGES IN SECURITIES
None to be reported.
Item 3. DEFAULTS UPON SENIOR SECURITIES
None to be reported.
Item 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
None to be reported.
Item 5. OTHER INFORMATION
None to be reported.
Item 6. EXHIBITS AND REPORTS ON FORM 8-K
A. Exhibits - None to be reported.
B. Form 8-K - None to be reported.
Page 17 of 18
PART II OTHER INFORMATION
THE FARMERS BANCORP
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.
THE FARMERS BANCORP
(Registrant)
Date February 8,1996
Tom Rohrabaugh, President
(Principal Executive Officer)
Date February 8, 1996
Karen I. Miller
Vice President and Treasurer
(Principal Financial and Accounting
Officer)
Page 18 of 18
