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 September 30, 1996
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 SEPTEMBER 30, 1996
common stock, no par value 577,058
Page 1 of 16
FORM 10-Q
INDEX
Part I. Financial Information: Page
Item 1. Financial Statements:
Consolidated Statements of Condition 3
Consolidated Statements of Income 4
Consolidated Statements of Changes in
Stockholders' Equity 5
Consolidated Statements of Cash Flows 6
Notes to Consolidated Financial Statements 7
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 8-13
Part II. Other Information:
Item 1. Legal Proceedings 14
Item 2. Changes in Securities 14
Item 3. Defaults upon Senior Securities 14
Item 4. Submission of Matters to a Vote of Security Holders 14
Item 5. Other Information 15
Item 6. Exhibits and Reports on Form 8-K 15
Signatures 16
Page 2 of 16<PAGE>
PART I, FINANCIAL INFORMATION
ITEM 1: FINANCIAL STATEMENT
THE FARMERS BANCORP
CONSOLIDATED STATEMENTS OF CONDITION
(Dollars in Thousands)
ASSETS Sept 30 June 30
1996 1996
-----------------------
Cash and due from banks 7602 9889
Federal funds sold 0 0
Money market investments 0 0
-----------------------
Total cash and cash equivalents 7602 9889
Available-for-sale securities 17147 18610
Held-to-maturity securities 22795 23654
Loans held for sale 646 492
Total loans 183631 173556
Allowance for loan losses -2847 -2741
-----------------------
Net loans 180784 170815
Premises and equipment 4743 4641
Restricted stock, at cost 771 771
Accrued income and other assets 7947 8172
-----------------------
Total Assets 242435 237044
=======================
LIABILITIES
Deposits
Demand 23501 22115
Savings 65579 67158
Time, $100,000 and over 21829 20250
Other time 79681 81966
-----------------------
190590 191489
Short-term borrowings 15522 12752
Other borrowings 9171 6259
Accrued interest payable 1030 958
Other liabilities 1381 1459
-----------------------
Total Liabilities 217694 212917
SHAREHOLDERS' EQUITY
Common stock, (no par value-2,400,000 shares authorized
and 577,058 shares issued and outstanding) 2885 2885
Additional paid-in capital 5101 5101
Retained earnings 16810 16235
Net unrealized gain on available-for-sale
securities (net of tax) (55) (94)
-----------------------
Total Shareholders' Equity 24741 24127
-----------------------
Total Liabilities & Shareholders' Equity 242435 237044
=======================
See accompanying notes to consolidated financial statements
Page 3 of 16
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 Sept 30
1996 1995
-------------
Interest Income:
Interest and fees on loans 4151 3652
Interest on securities:
Taxable 530 510
Tax exempt 128 136
Interest on short-term investments 25 209
--------------
Total Interest Income 4834 4507
Interest Expense: --------------
Interest on deposits 1910 1846
Interest on short-term borrowings 114 162
Interest on other borrowings 99 76
--------------
Total Interest Expense 2123 2084
--------------
Net Interest Income 2711 2423
Provision for loan losses 120 120
--------------
2591 2303
Other income: --------------
Trust fees 65 61
Service charge income 196 181
Other 163 98
--------------
Total Other Income 424 340
Other expenses: --------------
Salaries and employee benefits 959 904
Occupancy expense 143 146
Equipment expense 143 141
Other operating expenses 494 472
--------------
Total Other Expense 1739 1663
--------------
Income Before Income Tax 1276 980
Less: Income taxes 459 338
--------------
Net Income 817 642
Per share data: ==============
Net income per share 1.42 1.11
==============
Dividends per share .42 .40
==============
See accompanying notes to consolidated financial statements
Page 4 of 16
PART I, FINANCIAL INFORMATION
ITEM 1: FINANCIAL STATEMENT
THE FARMERS BANCORP
CONSOLIDATED STATEMENTS OF CHANGES
IN SHAREHOLDERS' EQUITY
(Dollars in Thousands)
1996 1995
-------------------
Balance - June 30 24127 22821
Net Income 817 642
Dividends (242) (231)
Change in net unrealized gain on
available-for-sale securities 39 (23)
-------------------
Balance - September 30 24741 23209
===================
See accompanying notes to consolidated financial statements
Page 5 of 16
PART I, FINANCIAL INFORMATION
ITEM I: FINANCIAL STATEMENT
THE FARMERS BANCORP
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in Thousands)
Three Months Ended
September 30
CASH FLOWS FROM OPERATING ACTIVITIES 1996 1995
Net income 817 642
Adjustments to reconcile net income to net cash
from operating activities 456 497
---------------
Net cash from operating activities 1273 1139
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from maturities and principal repayments on
available-for-sale securities 1524 428
Purchases of available-for-sale securities -0- (1000)
Proceeds from maturities and principal repayments
on investment securities 849 3056
Purchase of investment securities -0- (1967)
Loans made to customers, net of principal
collections thereon (10243) (3200)
Net change in interest-bearing balances with
financial institutions -0- -0-
Purchase of life insurance policies -0- -0-
Property and equipment expenditures (231) (298)
---------------
Net cash from investing activities (8101) (2981)
CASH FLOWS FROM FINANCING ACTIVITIES
Net increase/(decrease) in deposits (899) 7325
Net increase/(decrease) in short term borrowings 2770 (6285)
Proceeds from other borrowings 3000 -0-
Repayment of other borrowings (88) (82)
Dividends paid (242) (231)
---------------
Net cash from financing activities 4541 727
---------------
NET CHANGE IN CASH AND CASH EQUIVALENTS (2287) (1115)
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 9889 19085
---------------
CASH AND CASH EQUIVALENTS AT END OF YEAR 7602 17970
===============
See accompanying notes to consolidated financial statements
Page 6 of 16
PART I FINANCIAL INFORMATION
ITEM 1: FINANCIAL STATEMENTS
THE FARMERS BANCORP
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
September 30, 1996
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
Effective July 1, 1995, the Bancorp adopted Financial Accounting
Standard (FAS) No. 114, "Accounting By Creditors For Impairment of a
Loan", as amended by FAS No. 118, which 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. Management evaluates loans for
impairment in conjunction with the quarterly evaluation of the allowance
for loan losses. Generally, such evaluation is limited to large
commercial and commercial real estate loans. Consumer loans and
mortgage loans secured by 1-to 4 family residential property are
generally not evaluated for impairment. 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
September 30, 1996 management has identified $925,000 of loans as
impaired and allocated $125,000 of the Bank's $2.8 million reserve for
loan losses for those loans.
Effective July 1, 1996, the Bancorp adopted Financial Accounting
Standard No. 121, "Accounting for the Impairment of Long-Lived Assets
and for Long-Lived Assets to be Disposed of." Management does not
believe the Bancorp has any material assets subject to this new
Standard.
Effective July 1, 1996, the Bancorp adopted Financial Accounting
Standard No. 122, "Accounting for Mortgage Servicing Rights." This
Standard requires the basis on mortgage loans originated and sold, with
servicing retained, to be allocated between the mortgage loan and the
mortgage servicing right, based upon the relative fair value of such
assets. The effect of this Standard will be to increase the gain, or
reduce the loss, recognized upon the sale of a mortgage loan and will
reduce future servicing fee income. During 1996, application of this
Standard did not significantly effect the Bancorp's financial condition
or results of operation.
Page 7 of 16
PART I FINANCIAL INFORMATION
ITEM 2: MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
THE FARMERS BANCORP
September 30, 1996
FINANCIAL CONDITION:
Total assets increased 2.27 percent from June 30, 1996 to September 30,
1996 and totaled $242,435,000 at period end. During the three months
ended September 30, 1996 no securities were purchased. However, during
the same period, $2,322,000 of securities matured, were repaid or were
called prior to their maturity. As a result, total securities decreased
$2,322,000 or 5.49 percent. The following table presents, in thousands,
the amortized cost and fair value of securities:
SEPTEMBER 30, 1996 Amortized Gross Gross Fair
Cost Unrealized Gains Unrealized Losses Value
Held-to-maturity
Securities $22,795 $219 ($157) $22,857
Available-for-sale
Securities 17,237 47 (137) 17,147
JUNE 30, 1996
Held-to-maturity
Securities 23,654 188 (307) 23,535
Available-for-sale
Securities 18,766 59 (215) 18,610
Other assets totaled $7,947,000 at September 30, 1996, and include
insurance policies with a current cash surrender value of $4,541,000
that were purchased in conjunction with the formation of deferred
compensation and death benefit programs.
Other borrowings increased to $9,171,000 and consist primarily of
Federal Home Loan Bank advances and Federal Reserve Seasonal
Agricultural Line Borrowings which were $5,686,000 and $3,000,000
respectively at September 30, 1996. The Bank utilized the FHLB advances
to fund certain commercial real estate loans. These advances require
annual principal payments, and have a final maturity of June, 2006. The
Bank may occasionally utilize this source of credit to maintain
liquidity, as well as to fund specific loans. The Federal Reserve
Seasonal Agricultural Borrowings are utilized to fund the fluctuation of
seasonal demand of the Bancorp's agricultural customer's operating lines
of credit. 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 $485,000.
Page 8 of 16
RESULTS OF OPERATIONS:
The Bancorp reported net income, for the first three months of the
fiscal year ending June 30, 1997 of $817,000, as compared to $642,000
for the prior year. Earnings per share were $1.42 and $1.11,
respectively, based on an average of 577,058 shares outstanding for the
three months ended September 30, 1996 and September 30, 1995. The
factor that most affected 1996's performance, as compared to 1995 is the
continued increase in loan demand.
Total interest income was $4,834,000 for the three months ended
September 30, 1996, compared to $4,507,000 for the three months ended
September 30, 1995, an increase of 7.26 percent. This increase resulted
from a 13.66 percent increase in interest and fees on loans offset by a
$184,000 decrease in interest income on short-term investments. Loans,
including those held for sale, increased $24,264,000, or 15.16 percent,
from September 30, 1995 to September 30, 1996. Interest and fees on
loans totaled $4,151,000 for the three months ended September 30, 1996,
compared to $3,652,000 for the three months ended September 30, 1995, an
increase of $499,000, or 13.66 percent. Total interest expense was
$2,123,000 for the three months ended September 30, 1996, compared to
$2,084,000 for the same period in 1995, an increase of $39,000, or 1.87
percent. Total interest bearing deposits and repurchase agreements
increased $2,689,000, or 1.53 percent from September 30, 1995 to
September 30, 1996. Interest bearing transaction account balances
decreased $752,000 from September 30, 1995 to September 30, 1996, and
time deposits outstanding increased $6,226,000 for the same period.
Repurchase agreements decreased approximately $2,785,000 or 19.33
percent, from September 30, 1995 to September 30, 1996, as not as many
corporate customers utilized the Bank's Sweep Agreement.
Average earning assets increased to $222,324,000 during the three months
ended September 30, 1996. This represents an approximate increase of
4.84 percent compared to $212,051,000 for the three months ended
September 30, 1995. The tax-equivalent yield on average earning assets
was 8.78 percent for the three months ended September 30, 1996, compared
to 8.55 percent for the three months ended September 30, 1995. Total
interest expense to average interest bearing liabilities was 4.46
percent for the three months ended September 30, 1996, compared to 4.57
percent for the three months ended September 30, 1995. This results in
a tax-equivalent net interest margin (net tax-equivalent interest income
divided by average earning assets) of 4.98 percent and 4.65 percent for
the three months ended September 30, 1996 and 1995, respectively. The
increase in average earning assets and the increase in margin resulted
in net interest income increasing by $288,000, or 11.89 percent. The
increase in interest margin is a trend that management anticipates will
level off and remain stable.
Page 9 of 16
RESULTS OF OPERATIONS (cont.)
The provision for loan losses totaled $120,000 for both three month
periods ended September 30, 1996 and September 30, 1995. Net chargeoffs
(recoveries) for the three months ended September 30, 1996 totaled
$14,000. Net chargeoffs (recoveries) by loan type aggregated $(3,000)
for commercial and agricultural loans, $14,000 for consumer loans, $0
for real estate loans, and $3,000 for credit card loans. On September
30, 1996, the allowance for loan losses totaled $2,847,000 or 1.54
percent of loans, compared to $2,741,000 or 1.57 percent of loans on
June 30, 1996, and $2,678,000 or 1.67 percent of loans at September 30,
1995. The provision is determined by management based 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 $925,000 of
loans as impaired at September 30, 1996 and allocated $125,000 of the
allowance for loan losses to such loans, as compared to $1,234,000 and
$225,000, respectively, as of July 1, 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 September 30, 1996 and
September 30, 1995.
September 30,
1996 1995
Specific Allocations:
Allocated to impaired loans $ 125,000 $ 215,000
Allocated to other loans 690,000 599,000
Allocated to types of loans 358,000 763,000
---------- ----------
1,173,000 1,577,000
Unallocated 1,674,000 1,101,000
---------- ----------
ACTUAL BALANCE OF RESERVE $2,847,000 $2,678,000
========== ==========
Page 10 of 16
RESULTS OF OPERATIONS (cont.)
The Bancorp anticipates receiving lower levels of paybacks from many of
its agricultural customers from the 1996 crop season. This is due to
unfavorable weather conditions during the spring and early 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, increased to $2,577,000 at
September 30, 1996, compared to $2,373,000 at June 30, 1996.
Non-performing loans at September 30, 1996 represented 1.40 percent of
total loans and 90.52 percent of the Reserve for Loan Losses. The
following table shows the composition of non-performing loans at both
period ends.
September 30, June 30,
1996 1996
Real Estate Loans $ 260,000 (2) $ 104,000
Consumer Loans 224,000 134,000
Commercial and Agricultural 2,093,000 (3) 2,135,000(1)
---------- ----------
$2,577,000 $2,373,000
========== ==========
Notes:
1. Includes five agricultural loans totaling $632,000 on non-
accrual, two commercial real estate loans totaling $361,000
on non-accrual, one agricultural credit past due more than
90 days in the amount of $280,000, two commercial loans past
due more than 90 days totaling $114,000, four restructured
agricultural loans totaling $579,000, and two restructured
commercial loans in the amount of $169,000.
2. Includes four residential mortgages totaling $136,000 past
due more than 90 days, and one construction mortgage loan
totaling $124,000 past due more than 90 days.
3. Includes four agricultural loans totaling $564,000 on non-accrual,
two commercial real estate loans totaling $361,000 on non-accrual,
one agricultural loan past due more than 90 days in the amount of
$280,000, three commercial loans past due more than 90 days in the
amount of $142,000, four restructured agricultural loans totaling
$579,000, and two commercial restructured loans in the amount of
$167,000. The nonaccrual loans are deemed to be impaired, as
defined by FAS No. 114.
Page 11 of 16
RESULTS OF OPERATIONS (cont.)
Non-interest income increased 24.71 percent or $84,000 to $424,000 for
the three months ended September 30, 1996, compared to $340,000 for the
three months ended September 30, 1995. Other income, consisting of
gains on the sale of mortgage loans, commissions on credit life
insurance sales, safe deposit box rent, and other miscellaneous income
increased 66.33 percent or $65,000 to $163,000 for the three months
ended September 30, 1996 compared to $98,000 for the three months ended
September 30, 1995. This increase is primarily attributable to
commission income received for a new check card program, income
recognized for the cash surrender value of a death benefit insurance
policy owned by the Bank and an increase in servicing fees and gains on
mortgages sold into the secondary market.
Non-interest expense increased 4.57 percent or $76,000 and totaled
$1,739,000 for the three months ended September 30, 1996, compared to
$1,663,000 for the three months ended September 30, 1995. The majority
of the increase was in salaries and employee benefits expense which
increased 6.08 percent or $55,000, to $959,000. Other operating
expenses increased by 4.66 percent or $22,000 for the three months ended
September 30, 1996 as compared to September 30, 1995. This increase is
attributable to higher computer-related expenses resulting from the
purchase of upgrades of computer equipment and software for the Bank's
in-house computer system.
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
$11,928,000 at September 30, 1996. In addition, the Bancorp has
$646,000 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 20.30 percent on September 30, 1996. At September 30,
1996 Bancorp had unfunded loan commitments of $40,210,000, primarily
available balance on customer lines of credit, and outstanding letters
of credit of $662,000. 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 12 of 16
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 three months of fiscal 1997, and at September 30, 1996, 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 the 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 September 30, 1996:
Tier I Capital $24,796,000
Total Capital $27,205,000
Risk Weighted Assets $192,304,000
Leverage Ratio 10.40%
Risk-based Capital; Tier I 12.89%
Total Risk-based Capital 14.15%
On October 14, 1996, the Bancorp declared a $.22 per share quarterly
dividend, totaling $254,000, payable November 15, 1996 to shareholders
of record as of October 28, 1996. The book value of common stock on
September 30, 1996 was $42.87 per share, based on 577,058 shares
outstanding.
Page 13 of 16
PART II OTHER INFORMATION
THE FARMERS BANCORP
September 30, 1996
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
The annual meeting of the shareholders of the Farmers Bancorp was held
on Thursday September 19, 1996. At that meeting the following directors
were elected for three years: Fred K Agnew, Joe C. Doan, and Jack W.
Ransom. The three join the following holdover directors: Ralph M.
Butler, Joseph V Lahrman, Rawl V. Ransom, Tom Rohrabaugh, Stephen G.
Rothenberger, R. Kent Ryan Jr., and Stanley K. Smith. Armean L. wright
announced his retirement from the Board of Directors effective September
1996. He served faithfully with dedication and distinction for the past
twenty-eight years. Of the 577,058 shares outstanding, 314,503 shares
were voted at the annual meeting in connection with the election of
directors as follows: 297,831 for; 16,408 against; with 264
abstentions.
A vote was also taken to approve an increase in the number of authorized
shares of the Farmers Bancorp from 600,000 to 2,400,000. Of the 577,058
shares outstanding 314,503 shares were voted as follows: 309,639 for;
3,180 against; with 1,684 abstentions.
Page 14 of 16
Item 5. OTHER INFORMATION
None to be reported.
Item 6. EXHIBITS AND REPORTS ON FORM 8-K
A. Exhibits #27 - Financial data statement as of September 30, 1996.
B. Form 8-K - None to be reported.
Page 15 of 16
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: November 13, 1996 -------------------------------
Tom Rohrabaugh, President
(Principal Executive Officer)
Date: November 13, 1996 --------------------------------
Karen I. Miller
Vice President and Treasurer
(Principal Financial and
Accounting Officer)
Page 16 of 16
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<ALLOWANCE-DOMESTIC> 1173
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 1674
</TABLE>
