<TABLE>
<S> <C> <S> <C> <C>
Total # of Pages: 22
Exhibit Index: Page 21
</TABLE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
[ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 1995
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from N/A to N/A
Commission File Number: 0-16540
UNITED BANCORP, INC.
(Exact name of registrant as specified in its Charter.)
Ohio 34-1405357
(State or other jurisdiction of (IRS Employer Identification No.)
incorporation or organization)
Fourth at Hickory Street, Martins Ferry, Ohio 43935
(Address of principal executive offices) (Zip Code)
(614) 633-0445
(Registrant's telephone number, including area code)
Not Applicable
(Former name, former address and former fiscal year, if changed
since last report)
Indicate by check mark whether the registrant (1) has
filed all reports required to be filed by Section 13 or 15(d) of
the Securities Exchange Act of 1934 during the preceding 12
months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. Yes X No
Indicate the number of shares outstanding of the issuer's
classes of common stock as of the latest practicable date.
Common Stock, $1.00 Par Value 1,847,942 shares as of November 10, 1995.
<PAGE>
<TABLE>
United Bancorp, Inc.
Table of Contents
Form 10-Q
<S> <C> <S> <C>
Part I Financial Information
Item 1. Financial Statements (Unaudited)
Condensed Consolidated Balance Sheets...September 30, 1995
and December 31, 1994. 3
Condensed Consolidated Statements of Income...Three And
Nine Months Ended September 30, 1995 and 1994. 4
Condensed Consolidated Statements of Cash Flows...
Nine Months Ended September 30, 1995 and 1994. 5
Notes to Condensed Consolidated Financial Statements...
September 30, 1995. 6 - 15
Item 2 Management's Discussion and Analysis of Financial
Condition and Results of Operations 16 - 20
Part II Other Information
Item 1. Legal Proceedings 21
Item 2. Changes in Securities 21
Item 3. Defaults Upon Senior Securities 21
Item 4. Submission of Matters to a Vote of Security Holders 21
Item 5. Other Information 21
Item 6. Exhibits and Reports on Form 8-K 21
Signatures 22
</TABLE>
<TABLE>
United Bancorp, Inc.
Condensed Consolidated Balance Sheets (Unaudited)
Form 10-Q (In Thousands)
<CAPTION>
Part I - Financial Information
Sept 30, 1995 Dec 31, 1994
------------- ------------
ASSETS
- ------
<S> <C> <C> <C> <C>
Cash and Due From Banks $ 5,884 $ 6,680
Federal Funds Sold 140 50
---------- ----------
Total Cash and Cash Equivalents 6,024 6,730
Investment Securities Available For Sale 15,391 13,243
Investment Securities Held To Maturity
(estimated Fair value of $46,430 at
09/30/95 and $49,580 at 12/31/94) 45,744 51,261
Loans
Commercial Loans 10,220 8,816
Commercial Real Estate Loans 34,810 28,515
Real Estate Loans 32,989 32,585
Installment Loans 43,837 38,521
---------- ----------
Total Loans 121,856 108,437
Unearned Income (1) (46)
Allowance for Loan Losses (1,634) (1,438)
---------- -----------
Net Loans 120,221 106,953
Premises and Equipment, Net 4,779 4,937
Accrued Interest Receivable & Other Assets 2,425 2,510
---------- -----------
Total Assets $ 194,584 $ 185,634
========== ===========
</TABLE>
<TABLE>
LIABILITIES
- -----------
<CAPTION>
Deposits
<S> <C> <C> <C> <C>
Non-interest Bearing $ 12,410 $ 12,782
Interest Bearing 154,468 150,531
---------- -----------
Total Deposits 166,878 163,313
Repurchase Agreements 5,898 3,311
Borrowed Funds 2,549 1,265
Accrued Interest Payable 704 743
Other Liabilities 628 483
---------- -----------
Total Other Liabilities 9,779 5,802
Total Liabilities 176,657 169,115
</TABLE>
<TABLE>
SHAREHOLDERS' EQUITY
<CAPTION>
<S> <C> <C> <C> <C>
Common Stock: ($1 par value)
10,000,000 shares authorized;
issued and outstanding: 1,847,942 shares 1,848 1,848
Additional Paid-In-Capital 9,359 9,359
Retained Earnings 6,576 5,478
Unrealized Gain/(Loss) on Securities
Available For Sale 144 (166)
---------- -----------
Total Shareholders' Equity 17,927 16,519
Total Liabilities and ---------- -----------
Shareholders' Equity $ 194,584 $ 185,634
========== ===========
<FN>
The accompanying notes are an integral part of these condensed
consolidated financial statements
</TABLE>
<PAGE>
<TABLE>
United Bancorp, Inc.
Condensed Consolidated Statements of Income (Unaudited)
Form 10-Q (In Thousands)
Three Months Ended Nine Months Ended
------------------ -----------------
September 30, September 30,
1995 1994 1995 1994
------------------ -----------------
Intrest Income
Interest and
<S> <C> <C> <C> <C>
Fees on Loans $ 2,737 $ 2,221 $ 7,703 $ 6,095
Interest on Investment
Securities
Taxable 688 671 2,142 1,977
Tax Exempt 242 243 726 730
Interest on Fed Funds Sold 18 12 67 191
------- -------- ------- -------
Total Interest Income 3,685 3,147 10,638 8,993
Interest Expense
Deposits 1,581 1,352 4,663 3,916
Other 95 28 216 63
------- -------- ------- -------
Total Interest Expense 1,676 1,380 4,879 3,979
Net Interest Income 2,009 1,767 5,759 5,014
Provision For Loan Losses (125) (75) (294) (186)
Net Interest Income After
Provision For Loan Losses 1,884 1,692 5,465 4,828
Noninterest Income
Service Charges on
Deposit Accounts 137 108 397 313
Investment Security
Gains, Net 0 5 12 106
Other 73 75 278 240
------- ------- ------- -------
Total Noninterest Income 210 188 687 659
Noninterest Expenses
Salaries And Employee
Benefits 658 587 1,953 1,710
Premises, Furniture and
Equipment Expense 48 203 447 586
Other Operating Expense 522 464 1,515 1,366
------- ------ ------ -------
Total Noninterest Expenses 1,228 1,254 3,915 3,662
Income Before Taxes 866 626 2,237 1,825
Provision For Income Taxes (229) (137) (566) (394)
------- ------ ------ ------
Net Income $ 637 $ 489 $ 1,671 $ 1,431
======= ====== ======= =======
Earnings Per Common Share $ 0.35 $ 0.26 $ 0.91 $ 0.77
Average Number of
Shares Outstanding 1,847,942 1,847,942 1,847,942 1,847,942
Dividends Per Common Share $ 0.110 $ 0.080 $ 0.310 $ 0.225
<FN>
The accompanying notes are an integral part of these condensed
consolidated financial statements.
</TABLE>
<PAGE>
<TABLE>
United Bancorp, Inc.
Condensed Consolidated Statements of Cash Flows (Unaudited)
Form 10-Q (In Thousands)
<CAPTION>
Nine Months Ended
------------------------------
SEPT 30, 1995 SEPT 30, 1994
------------- -------------
CASH FLOWS FROM OPERATING ACTIVITIES
<S> <C> <C> <C> <C>
Net Incom $ 1,671 $ 1,431
Adjustments to Reconcile Net Income
to Net Cash From Operating Activities
Depreciation and Amortization 272 315
Amortization of Intangibles 66 47
Provision for Loan Losses 294 186
Deferred Taxes 91 2
Gain/Loss on Sale/Call of
Investment Securities (12) (106)
Amortization ofinvestment
securities, Net 60 155
Net Changes in:
Other Assets 19 (711)
Other Liabilities (143) 62
--------- ---------
Net Cash From Operating Activities 2,318 1,381
CASH FLOWS FROM INVESTING ACTIVITIES
Investment Securities Available For Sale
Proceeds From Sales of Investment
Securities 500 1,887
Proceeds From Maturities/Calls
of Investment Securities
Purchase Of Investment Securities (2,144) (6,711)
Investment Securities Held To Maturity
Proceeds From Sales of Investment
Securities 1,212
Proceeds From Maturities/Calls of
Investment Securities 6,224 8,379
Purchase Of Investment Securities (791) (7,114)
Net Change in Loans (13,562) (18,887)
Property and Equipment Expenditures (114) (200)
------- -------
Net Cash From Investing Activities (9,887) (21,434)
CASH FLOWS FROM FINANCING ACTIVITIES
Net Change in Deposits 3,565 4,421
Net Change in Repurchase Agreements
And Borrowed Funds 3,871 1,807
Cash Dividends Paid (573) (417)
------ -------
Net Cash From Financing Activities 6,863 5,811
------ --------
Net Change In Cash And Cash Equivalents (706) (14,242)
Cash And Cash Equivalents At
Beginning Of Year 6,730 19,909
------- --------
Cash And Cash Equivalents At
End Of Period $ 6,024 $ 5,667
======= ========
<FN>
The accompanying notes are an integral part of these condensed
consolidated financial statements
</TABLE>
<PAGE>
United Bancorp, Inc.
Notes To The Condensed Consolidated Financial Statements (Unaudited)
Form 10-Q
1 Summary of Significant Accounting Policies
The following is a summary of significant accounting policies
followed in the preparation of the accompanying condensed
consolidated financial statements.
Basis of Presentation
The accompanying condensed consolidated financial statements
include the accounts of United Bancorp, Inc. (Company) and its
wholly owned subsidiaries, The Citizens Savings Bank of Martins
Ferry, Ohio, (Citizens-Martins Ferry) and The Citizens-State
Bank of Strasburg, Ohio, (Citizens-Strasburg). For purposes of
consolidation, all material intercompany balances and
transactions have been eliminated. The results of operations
for the period ended September 30, 1995, are not necessarily
indicative of the operating results for the full year of 1995.
These interim financial statements are prepared without audit
and reflect all adjustments which, in the opinion of management,
are necessary to present fairly the consolidated financial
position of the Company at September 30, 1995 and its results of
operations and statement of cash flows for the periods
presented. The accompanying condensed consolidated financial
statements do not purport to contain all the necessary financial
disclosures required by generally accepted accounting principles
that might otherwise be necessary in the circumstances and
should be read in conjunction with the 1994 United Bancorp,
Inc. consolidated financial statements and related notes thereto
included in its Annual Report to Shareholders for the year ended
December 31, 1994.
Investment Securities
The Company classifies securities into held-to-maturity,
available-for-sale and trading categories. Held-to-maturity
securities are those which the Company has the positive intent
and ability to hold to maturity, and are reported at amortized
cost. Available-for-sale securities are those which the Company
may decide to sell if needed for liquidity, asset/liability
management, or other reasons. Available-for-sale securities are
reported at fair value, with unrealized gains or losses included
as a separate component of equity, net of tax. Trading
securities are bought principally for sale in the near term and
are reported at fair value with unrealized gains or losses
included in earnings. The Company had no trading securities
through September 30, 1995.
Realized gains or losses are determined based on the amortized
cost of the specific security sold. Interest and dividend
income, adjusted by amortization of purchase premium or discount
is included in earnings.
Interest and Fees on Loans
Interest income on loans is accrued over the term of the loans
based on the principal amount outstanding. Where no account
activity occurs for 90 consecutive days, the accrual of interest
is discontinued and adjusted back to the date of non payment.
Loan fees and direct costs associated with originating or
acquiring loans are deferred and recognized over the life of the
related loan as an adjustment of the yield. The net amount of
fees and costs deferred is reported in the condensed
consolidated balance sheets as part of loans.
<PAGE>
United Bancorp, Inc.
Notes To The Condensed Consolidated Financial Statements (Unaudited)
Form 10-Q
Allowance For Loan Losses
The allowance for loan losses represents that amount which
management estimates is adequate to provide for inherent losses
in its loan portfolio. The allowance balance and the annual
provision charged to expense are judgmentally determined by
management based upon past loan loss experience, economic
conditions and various other circumstances that are subject to
change over time. The collectibility of the loans is based upon
factors including the financial position of the borrower, the
estimated market value of the collateral at the current time,
guarantees and the Company's collateral position versus other
creditors.
The Company adopted Statement of Financial Accounting Standards,
("SFAS") No. 114, "Accounting By Creditors For Impairment Of A
Loan" and SFAS No. 118, " Accounting By Creditors For Impairment
Of A Loan - Income Recognition And Disclosures" at January 1,
1995. Under SFAS No. 114, loans considered to be impaired are
reduced to the present value of expected future cash flows or to
the fair value of collateral, by allocating a portion of the
allowance for loan losses to such loans. If these allocations
cause the allowance for loan losses to increase, such increases
are reported as bad debt expense. SFAS No. 118 allows existing
methods to recognize interest income on impaired loans. The
effect of adopting these standards had no impact on the
Company's financial statements. Historical loss information and
local economic conditions are considered in establishing
allowances on the remaining portfolio. The allowance is reduced
by charging off loans deemed uncollectible by management. The
allowance is increased by provisions charged to expense and
recoveries of previous charge-offs. After a loan is charged
off, collection efforts continue.
Premises and Equipment
Premises and equipment are stated at cost less accumulated
depreciation. Premises and related components are depreciated
using the straight-line method with lives ranging primarily from
20 to 50 years. Furniture and equipment are depreciated using
the straight-line method, with lives ranging primarily from 5 to
15 years. Maintenance and repairs are expensed and major
improvements are capitalized. At the time of sale or
disposition of an asset, the applicable cost and accumulated
depreciation amounts are removed from the accounting records.
Other Real Estate
Other real estate is included in other assets at fair market
value, less estimated costs to sell. Any reduction from the
carrying value of the related loan to estimated fair value at
the time the property is acquired is accounted for as a loan
charge-off. Any subsequent reductions in the estimated fair
value are reflected in a valuation allowance through a charge to
other real estate expense. Expenses incurred to carry other
real estate are charged to operations as incurred. There was no
other real estate held at September 30, 1995 and December 31,
1994.
Income Taxes
The Company follows the liability method in accounting for
income taxes. The liability method provides that deferred tax
assets and liabilities are recorded based on the difference
between the tax basis of assets and liabilities and their
carrying amounts for financial reporting purposes.
<PAGE>
United Bancorp, Inc.
Notes To The Condensed Consolidated Financial Statements (Unaudited)
Form 10-Q
Earnings and Dividends Per Common Share
Earnings per common share have been computed based on the
weighted average number of shares outstanding during the periods
presented. The weighted average number of shares used in the
computation of earnings per share was 1,847,942 for the
comparative periods presented.
On August 11, 1994, a 10% stock dividend was approved for all
shareholders of record on August 19, 1994 and distributed on
September 9, 1994. This stock dividend was recorded by
transferring the fair market value of the shares issued from
Retained Earnings to Common Stock and
Additional-Paid-In-Capital. On November 16, 1993, the Board of
Directors declared a 100% stock split effected in the form of a
stock dividend to shareholders of record as of November 30,
1993. The dividends were distributed on December 10, 1993.
This transaction was recorded by transferring the par value of
the shares issued from retained earnings to common stock. All
per share data has been retroactively adjusted for the stock
dividend and stock split.
Statement of Cash Flows
For purposes of the Statements of Cash Flows, the Company
considers "cash and cash equivalents" to include cash,
noninterest bearing deposits with financial institutions and
Federal funds sold. The Company reports net cash flows for
Federal funds sold, customer loan transactions, deposit
transactions, securities sold under agreements to repurchase and
other borrowed funds. For the periods ended September 30, 1995
and September 30, 1994, the Company paid $4,919,000 and
$3,984,000 in interest on deposits and other borrowings and
$535,000 and $429,000 for income taxes, respectively.
Financial Statement Presentation
Certain reclassifications have been made in prior period
financial statements to conform to the September 30, 1995
presentation. The reclassifications had no effect on total
assets, shareholders' equity or net income as previously
reported.
Industry segment information
The single industry in which the Company is involved through the
activities of its two subsidiary banks is commercial community
banking serving the financial needs of local commercial,
individual and public entity customers. Revenue received by the
Company is derived primarily from upstream dividends paid by the
two subsidiary banks with disbursement to shareholders through
United Bancorp, Inc. dividends. Subsidiary income is generated
from activities specific to the commercial banking industry.
Future Accounting Pronouncements
The Financial Accounting Standards Board ("FASB") issued SFAS
No. 122, "Accounting for Mortgage Servicing Rights," in May
1995, effective for fiscal years beginning after December 15,
1995. It requires companies to recognize, as separate assets,
rights to service mortgage loans for others, regardless of how
these rights are acquired. A company that acquires mortgage
servicing rights through either the purchase or origination of
mortgage loans and sells or securitizes those loans with
servicing rights retained should allocate the total cost of the
mortgage loans to mortgage servicing rights and to loans
(without the mortgage servicing rights) based on their
<PAGE>
United Bancorp, Inc.
Notes To The Condensed Consolidated Financial Statements (Unaudited)
Form 10-Q
Future Accounting Pronouncements (Continued)
relative fair values. Mortgage servicing rights recorded as a
separate asset will be amortized in proportion to, and over the
period of, estimated net servicing income. This pronouncement
has no impact on the Company at the present time due to the
Company not selling any loans or acquiring servicing rights to
date.
<TABLE>
2 Investment Securities
<CAPTION>
The amortized cost and estimated fair values of investment
securities are as follows:
September 30, 1995
----------------------------------------------
Gross Gross Estimated
Amortized Unrealized Unrealized Fair
Cost Gain Loss Value
--------- ---------- ---------- ---------
Investment Securities
Available For Sale
<S><C> <S> <C> <C> <C> <C>
U.S. Treasury Obligations $ 2,439,847 $ 66,403 $ 2,506,250
U.S. Agency Obligations 12,205,253 136,584 $ (1,250) 12,340,587
State And Municipal
Obligations 336,365 17,462 (1,721) 352,106
Other Investments 191,700 191,700
Total Investments ------------ --------- --------- ------------
Available For Sale $ 15,173,165 $ 220,449 $ (2,971) $ 15,390,643
============ ========= ========= ============
Investment Securities
Held To Maturity
U.S. Treasury Obligations $ 4,988,767 $ 63,221 $ (8,269) $ 5,043,719
U.S. Agency Obligations 22,844,285 39,985 (190,689) 22,693,581
State And Municipal
Obligations 17,877,191 782,183 (846) 18,658,528
Other Investments 33,872 216 34,088
Total Investments ------------ --------- ---------- ------------
Held To Maturity $ 45,744,115 $ 885,605 $(199,804) $ 46,429,916
============ ========= ========== ============
</TABLE>
<TABLE>
December 31, 1994
----------------------------------------------
Gross Gross Estimated
Amortized Unrealized Unrealized Fair
Cost Gain Loss Value
--------- ---------- ---------- ---------
Investment Securities
Available For Sale
<S><C> <S> <C> <C> <C> <C>
U.S. Treasury Obligations $ 2,427,438 $ (27,282) $ 2,400,156
U.S. Agency Obligations 10,686,024 $ 2,830 (217,334) 10,471,520
State And Municipal
Obligations 336,207 (10,422) 325,785
Other Investments 45,100 45,100
Total Investments ------------ --------- ---------- ------------
Available For Sale $ 13,494,769 $ 2,830 $(255,038) $ 13,242,561
============ ========= ========== ============
Investment Securities
Held To Maturity
U.S. Treasury Obligations $ 5,475,051 $ 991 $(157,167) $ 5,318,875
U.S. Agency Obligations 27,925,802 8,283 (1,285,462) 26,648,623
State And Municipal
Obligations 17,824,316 279,229 (525,531) 17,578,014
Other Investments 35,850 (1,513) 34,337
Total Investments ------------ --------- ------------ -----------
Held To Maturity $ 51,261,019 $ 288,503 $(1,969,673) $49,579,849
============ ========= ============ ===========
</TABLE>
<PAGE>
United Bancorp, Inc.
Notes To The Condensed Consolidated Financial Statements (Unaudited)
Form 10-Q
Investment Securities (Continued)
Total proceeds from sales of investment securities classified as
available-for-sale for the nine months ended September 30, 1995
were $500,312. Gross gains of $11,778 were realized on those
sales.
During the period ended September 30, 1994, Citizens-Strasburg
sold $1,018,860 in U.S. government agency obligations from the
held-to-maturity category. The proceeds were then invested in
U.S. Treasury Notes classified as held-to-maturity. This sale
and repurchase was mandated to satisfy state auditor comments
from an examination of a local school district, which holds a
depository relationship with Citizens-Strasburg. U.S. Agency
obligations pledged against the school district deposits were
cited during their audit as being in violation of the Ohio
Revised Code. This transaction corrected any potential exposure
to criticism to other school districts which have a depository
relationship with the Bank. The securities were sold for
$1,027,813 for a recognized gain of $8,953.
There was one sale of equity securities during the period ended
September 30, 1994. These equity securities were held with the
intent of a possible expansion opportunity for the Company.
After further review, the expansion opportunity appeared remote
and, therefore, the securities were sold. Proceeds from the
sale of these securities were $184,500, with $47,000 recorded as
gross gains associated with the sale.
Total proceeds from sales of investment securities classified as
available-for-sale for the nine months ended September 30, 1994
were $1,886,469. Gross gains of $46,187 and gross losses of
$751 were realized on those sales.
During the nine months ended September 30, 1994, two investment
securities classified as held-to-maturity were sold within 90
days of their maturity. Proceeds from the sales are reflected
as maturities in the statements of cash flows. The gross gain
associated with these sales was $5,057.
<PAGE>
United Bancorp, Inc.
Notes To The Condensed Consolidated Financial Statements (Unaudited)
Form 10-Q
Investment Securities (Continued)
The amortized cost and estimated fair value of investment
securities at September 30, 1995, by contractual maturity is
shown below. Expected maturities will differ from contractual
maturities because borrowers may have the right to call or repay
obligations with or without call or prepayment penalties. The
average interest rates are based on coupon rates adjusted for
amortization and accretion. Yields on tax-exempt securities
have been computed on a tax equivalent basis.
<TABLE>
<CAPTION>
----------------------------------------------
Investment Securities
September 30, 1995 Available For Sale
----------------------------------------------
Estimated Weighted
Amortized Fair Average Average
Cost Value Maturity Yield
---------- --------- --------- -------
U.S. Treasury Notes
<S> <C> <C> <C> <C> <S><C> <C>
Within One Year $ 503,513 $ 506,562 12.0 mos. 6.26%
One Through Two Years 994,680 1,011,095 16.5 mos. 6.90%
Two Through Five Years 941,654 988,593 37.5 mos. 7.75%
---------- ----------- --------- -----
Total 2,439,847 2,506,250 24.0 mos. 7.11%
U.S. Agency
Within One Year 503,436 512,343 11.8 mos. 7.50%
One Through Two Years 1,488,580 1,521,157 16.4 mos. 7.60%
Two through Five Years 4,465,664 4,555,837 34.4 mos. 7.58%
Five Through Ten Years 5,747,573 5,751,250 99.8 mos. 6.66%
---------- ----------- --------- -----
Total 12,205,253 12,340,587 64.4 mos. 7.11%
State & Municipal Obligations
Within One Year
One Through Two Years
Two through Five Years
Five Through Ten Years 268,178 279,589 107.0 mos. 8.31%
Over Ten Years 68,187 72,517 122.0 mos. 8.59%
---------- ----------- ---------- -----
Total 336,365 352,106 110.3 mos. 8.37%
Other Investments
Five Through Ten Years
Other 191,700 191,700 5.00%
----------- ----------- --------- ------
Total Investment
Securities $15,173,165 $15,390,643 56.9 mos. 7.17%
=========== =========== ========= ======
</TABLE>
<PAGE>
United Bancorp, Inc.
Notes To The Condensed Consolidated Financial Statements (Unaudited)
Form 10-Q
<TABLE>
Investment Securities (Continued)
<CAPTION>
----------------------------------------------
Investment Securities
September 30, 1995 Held To Maturity
----------------------------------------------
Estimated Weighted
Amortized Fair Average Average
Cost Value Maturity Yield
---------- --------- --------- -------
U.S. Treasury Notes
<S> <C> <C> <C> <S><C> <C>
Within One Year $ 1,750,595 $ 1,746,406 5.5 mos. 5.42%
One Through Two Years 999,370 1,006,875 16.0 mos. 6.30%
Two Through Five Years 2,238,802 2,290,438 38.8 mos. 6.75%
------------ ------------ --------- ------
Total 4,988,767 5,043,719 22.8 mos. 6.19%
U.S. Agency
Within One Year 5,018,503 5,034,532 5.5 mos. 6.62%
One Through Two Years 4,013,700 4,022,968 17.8 mos. 5.97%
Two through Five Years 13,312,281 13,128,269 38.2 mos. 5.64%
Five Through Ten Years 499,801 507,812 68.4 mos. 8.71%
------------ ------------ --------- -----
Total 22,844,285 22,693,581 28.6 mos. 5.98%
State & Municipal Obligations
Within One Year 1,456,011 1,456,668 2.3 mos. 6.37%
One Through Two Years 1,071,132 1,079,494 15.9 mos. 6.65%
Two through Five Years 2,562,795 2,705,535 42.8 mos. 8.78%
Five Through Ten Years 12,411,926 13,023,381 83.0 mos. 8.27%
Over Ten Years 375,327 393,450 121.5 mos. 8.42%
----------- ------------ --------- -----
Total 17,877,191 18,658,528 67.4 mos. 8.10%
Other Investments
Five Through Ten Years 33,872 34,088 66.5 mos. 7.46%
Other
----------- ----------- --------- -----
Total Investment
Securities $45,744,115 $46,429,916 42.9 mos. 6.83%
=========== =========== ========= =====
</TABLE>
Securities with a par value of approximately $22,458,000 at
September 30, 1995 and $20,972,000 at December 31, 1994 were
pledged to secure public deposits, repurchase agreements and
other liabilities as required or permitted by law.
<PAGE>
United Bancorp, Inc.
Notes To The Condensed Consolidated Financial Statements (Unaudited)
Form 10-Q
3 Loans
Nonaccrual loans at September 30, 1995 and December 31, 1994
totaled $34,850 and $61,882, respectively.
The gross interest income that would have been recorded on
nonaccrual loans as of September 30, 1995 and September 30,
1994, if the loans had been current in accordance with their
original terms and had been outstanding throughout the period or
since origination, if held for part of the period was $9,196 and
$3,369, respectively. The interest income that was recorded on
those loans as of September 30, 1995 and September 30, 1994 was
$988 and $1,154, respectively. It is the Company's policy to
place loans in the nonaccrual status when the collection of the
interest due is highly doubtful, or when the loan has no account
activity for 90 consecutive days. When loans are charged-off,
any accrued interest recorded in the current fiscal year is
charged against interest income, with the remaining balance
treated as a loan charge-off.
The Company has, and expects to have in the future, banking
transactions with directors and officers of the Company and its
subsidiaries. Loans to such borrowers, their immediate
families, affiliated corporations, and other entities in which
they own more than a 10% voting interest are summarized below:
<TABLE>
<S> <C> <C> <C> <C>
Aggregate balance - December 31, 1994 $ 2,471,043
New loans 1,100,000
Repayments (514,730)
-----------
Aggregate balance - September 30, 1995 $ 3,056,313
===========
</TABLE>
4 Allowance For Loan Losses
The activity in the allowance for loan losses is summarized as
follows:
<TABLE>
1995 1994
---- ----
<S> <C> <S> <C> <C> <C>
Balance - 1/01/95 and 1/01/94 $ 1,437,734 $ 1,256,322
Provision charged to
operating expense 294,000 281,000
Loans charged-off (118,082) (123,312)
Recoveries 20,617 23,724
----------- -----------
Balance - 9/30/95 and 12/31/94 $ 1,634,269 $ 1,437,734
=========== ===========
</TABLE>
<PAGE>
United Bancorp, Inc.
Notes To The Condensed Consolidated Financial Statements (Unaudited)
Form 10-Q
5 Premises and Equipment
Premises and equipment, at cost, and accumulated depreciation
and amortization as of September 30, 1995 and December 31, 1994
are as follows:
<TABLE>
1995 1994
------------ ------------
<S> <C> <C>
Buildings and land $ 5,304,987 $ 5,261,772
Furniture and equipment 2,091,596 2,033,267
Computer software 321,984 318,490
------------ ------------
Total 7,718,567 7,613,529
Accumulated depreciation
and amortization 2,939,784 2,676,253
------------ ------------
Premises and equipment (net) $ 4,778,783 $ 4,937,276
============ ============
</TABLE>
6 Commitments and Contingencies
The Company's subsidiaries are parties to financial instruments
with off-balance sheet risk in the normal course of business, to
meet the financing needs of their customers. These financial
instruments include lines of credit and commitments to make
loans. The Company's exposure to credit loss in the event of
nonperformance by the other party to the financial instrument
for commitments to make loans and standby letters of credit is
represented by the contractual amount of those instruments. The
Company follows the same credit policy to make such commitments
as is followed for those loans recorded in the financial
statements.
As of September 30, 1995 and December 31, 1994, commitments to
extend credit (at market rates) and commitments under
outstanding standby letters of credit amounted to approximately
$11,252,000 and $8,542,000 respectively. Since many commitments
to make loans expire without being used, the amount does not
necessarily represent future cash commitments. The Company does
not anticipate any losses as a result of these commitments. In
addition, commitments to extend credit are agreements to lend to
a customer as long as there is no violation of any condition
established in the contract. Collateral obtained upon the
exercise of the commitment is determined using the Company's
evaluation of the borrower, and may include business assets,
real estate and other items.
At September 30, 1995, the Company has lines of credit enabling
it to borrow up to $6.5 million with Mellon Bank, Pittsburgh,
Pennsylvania, National City Bank, Cleveland, Ohio, National Bank
Detroit, Detroit, Michigan. The Company also has the ability to
borrow up to $10 million under a borrowing agreement with the
Federal Home Loan Bank (FHLB), Cincinnati, Ohio. Borrowings
under this agreement are collateralized by the Company's FHLB
stock and a blanket pledge of the Company's 1-4 family
residential real estate loans.
The Company, on an ongoing basis, is a defendant in legal
actions arising from normal business activities. Management
believes that those actions are without merit or that the
ultimate liability, if any, resulting from them will not
materially affect the Company's financial statements.
At September 30, 1995 and December 31, 1994, the Company was
required to have $725,000 and $581,000, respectively, of cash on
hand or on deposit with the Federal Reserve Bank to meet
regulatory reserve requirements. These balances do not earn
interest.
<PAGE>
United Bancorp, Inc.
Notes To The Condensed Consolidated Financial Statements (Unaudited)
Form 10-Q
7 Concentration of Credit Risk
The Bank's grant commercial, real estate and installment loans
to customers mainly in Belmont, Tuscarawas and Carroll Counties
and the surrounding localities. Substantially all loans are
secured by specific items of collateral including business
assets, consumer assets, commercial real estate and residential
real estate.
At September 30, 1995, total commercial loans make up
approximately 37.0% of the loan portfolio with 36.3% of these
commercial loans secured by commercial and residential real
estate and business assets in the Columbus, Ohio area.
Installment loans account for approximately 36.0% of the loan
portfolio and are secured by consumer assets including
automobiles which account for 76.2% of the installment loan
portfolio. Real estate loans comprise 27.0% of the loan
portfolio and primarily include first mortgage loans on
residential properties and home equity lines of credit.
Included in cash and due from bank and Federal funds sold is
$1,623,656 on deposit with National City Bank, Cleveland, Ohio
and $1,963,956 on deposit with Mellon Bank, N.A., Pittsburgh,
Pennsylvania.
8 Dividend Restriction
Dividends paid by the subsidiary banks are the primary source of
funds available to the Company for payment of dividends to
shareholders and for other working capital needs. Applicable
state statutes and regulations impose restrictions on the amount
of dividends that may be declared by the Company. Those
restrictions generally limit dividends to earnings retained in
the current and prior two years, as defined by regulations. In
addition to these restrictions, as a practical matter, dividend
payments cannot reduce regulatory capital levels below minimum
regulatory guidelines. These restrictions would not limit the
Company's ability to pay normal dividends. As of September 30,
1995, $3,581,174 was available for dividend payments under the
more restrictive of the two limitations.
9 Branch Acquisition
Effective December 2, 1994, the Company, acting through its
wholly owned subsidiary, Citizens-Strasburg, acquired from
National City Bank of Cleveland, Ohio certain assets and assumed
certain deposit and other liabilities of a branch banking
facility located in Dellroy, Ohio. Citizens-Strasburg purchased
the National City Bank branch's cash, various loans, and
premises and equipment and assumed substantially all deposit
liabilities. The transaction was accounted for as a purchase,
and accordingly, the acquired assets and liabilities have been
recorded based on their respective fair market values at the
date of acquisition. A summary of assets acquired and
liabilities assumed follows:
<TABLE>
Assets
<CAPTION>
<S> <C>
Cash and Cash Equivalents Received $6,255,044
Loans 570,957
Premises And equipment 275,000
Intangible assets 140,000
Other Assets 4,171
----------
Total Assets $7,245,172
==========
Liabilities
Noninterest Bearing Deposits $1,457,187
Interest Bearing Deposits 5,785,705
---------
Total Deposits 7,242,892
Other Liabilities 2,280
----------
Total Liabilities $7,245,172
==========
</TABLE>
<PAGE>
United Bancorp, Inc.
Management's Discussion And Analysis
Form 10-Q
Introduction
In the following pages, Management presents an analysis of
United Bancorp, Inc.'s financial condition at September 30, 1995
compared to December 31, 1994 and results of operations for the
three and nine month periods ended September 30, 1995 compared
to the same periods ended September 30, 1994. This discussion
is designed to provide shareholders with a more comprehensive
review of the operating results and financial position than
could be obtained from an examination of the financial
statements alone. This analysis should be read in conjunction
with the financial statements and related footnotes and the
selected financial data included elsewhere in this report.
United Bancorp, Inc. is a multi-bank holding company located in
Martins Ferry, Ohio. The Company originally became incorporated
as a one bank holding company in July of 1983, through the
acquisition of 100% of the voting stock of The Citizens Savings
Bank of Martins Ferry, Ohio. As a shell holding company, the
Company is headquartered at the main office location of The
Citizens Savings Bank at 4th at Hickory Street, Martins Ferry.
Ohio. The Company became a multi-bank holding company in
December of 1986, through the purchase of 100% of the voting
stock of The Citizens-State Bank of Strasburg, Ohio. United
Bancorp, Inc. has been traded on the Nasdaq Small Cap Market
since February of 1993 under the trading symbol UBCP.
The markets served by both bank subsidiaries are rich in
diversity and widespread in geographic location.
Citizens-Martins Ferry meets the commercial banking needs of a
customer base within the greater Ohio Valley area on the eastern
border of Ohio. The decline of heavy industry, mining and rail
transportation in the local area within the last decade has seen
an erosion of the younger population base necessary for economic
revitalization. Citizens-Martins Ferry has developed lending
markets within the Columbus, Ohio region, while continuing to
meet the economic needs of its traditional local customer base.
Citizens-Strasburg's market is primarily centered within a light
industrial, residential area of north eastern Ohio, south of the
Akron and Canton, Ohio metro areas. Both bank subsidiaries are
postured to continue to serve the traditional needs of their
respective customer bases and also to introduce new products and
services to meet the ever-changing needs of today's service and
value oriented customer.
Results of Operations
Net income for the three and nine months ended September 30,
1995 increased by $148,091, or 30.28% and $240,406, or 16.80%
respectively, over the comparable prior year periods. Net
income for the nine months ended September 30, 1995 yielded an
annualized Return On Average Assets of 1.18% and a Return On
Average Equity of 12.94%. Factors contributing to this earnings
growth were increases in commercial lending at both subsidiary
locations and continued increases in indirect automobile lending
at the Citizens-Martins Ferry location. Additionally, the
Company experienced a 22.24% increase in noninterest income
without security gains for the nine months ended September 30,
1995 over the prior year nine month period, while experiencing
only a minor increase of 6.85% in noninterest expenses.
Net interest income, by definition, is the difference between
interest income generated on interest earning assets and the
interest expense incurred on interest bearing liabilities.
Various factors contribute to changes in net interest income,
including volumes, interest rates and the composition or mix of
interest
<PAGE>
United Bancorp, Inc.
Management's Discussion And Analysis
Form 10-Q
Results of Operations (Continued)
earning assets in relation to interest bearing liabilities. Net
interest income for the three and nine months ended September
30, 1995 increased $241,363, or 13.65% and $744,391, or 14.84%
compared to the prior year periods.
The continued increase was the result of the growth of the
Company's average earning assets as well as an increase in the
yield on these earning assets. The increased yield was due to
the upward movement in market interest rates which began in the
second quarter of 1994 after reaching the lowest levels in many
years. Interest rates have now begun to soften slightly in
response to recent Federal interest rate downward adjustments.
The Company increased its yield as a result of funding loan
growth from lower earning overnight funds to higher earning
loans and also reinvesting excesses in higher yielding
investment securities. The Company has continued to employ
aggressive marketing and pricing concepts to increase volume
throughout 1995 with the goal of generating a higher yielding
product mix..
Total interest income for the three month period ended September
30, 1995 compared to the same period in 1994 increased by
$537,650, or 17.08%. The nine month comparison for total
interest income shows an increase of $1,644,665, or 18.29%.
Average earning assets increased $14,689,815, or 9.00% over
September 30, 1994 totals. A significant portion of the growth
was from the investment of funds acquired from
Citizens-Strasburg's branch bank acquisition of the Dellroy,
Ohio office of National City Bank in December of 1994. Interest
and fee income on loans for the three months ended September 30,
1995, increased $515,412, or 23.20% over the September 30, 1994
activity. Interest and fee income on loans for the nine months
ended September 30, 1995, increased $1,607,245, or 26.37% over
the same nine month period in 1994. Funds previously generating
lower yields on short term Federal funds investments were
utilized for funding the continued increases in loan growth
experienced by both subsidiary banks.
Total interest expense for the three and nine months ended
September 30, 1995 increased by $296,287, or 21.48% and
$900,274, or 22.63%, respectively over the same periods ended
September 30, 1994. Average interest bearing liabilities
increased $12,456,201, or 8.33% over September 30, 1994 average
balances. The increase in interest expense was due to both
increased volume as well as the increase in the Company's
overall cost of funds which began during the second quarter of
1994.
Noninterest Income and Expense
Noninterest income, not including investment securities gains,
for the three and nine month periods ended September 30, 1995
increased $26,207, or 14.32% and $122,905, or 22.24%,
respectively as compared to the same three and nine month
periods in 1994. Service charges on deposit accounts increased
27.14% and 27.22% for the three and nine month comparative
periods, reflecting the continued benefits derived from a
realignment of service charges during the second quarter of
1995.
Noninterest expense for the three months ended September 30,
1995 compared to the same three months ended September 30, 1994
actually decreased $27,442, or 2.19%. This decrease represents
the cost savings recognized from utilization of the fully
depreciated in-house data processing system at the
Citizens-Martins Ferry location. Future plans call for the
installation and conversion to a new generation hardware and
software system during the 4th quarter of 1995.
<PAGE>
United Bancorp, Inc.
Management's Discussion And Analysis
Form 10-Q
Results of Operations (Continued)
Noninterest Income and Expense (Continued)
The FDIC Bank Insurance Fund refund issued to eligible banks
during September 1995 resulted in a one-time benefit to pretax
earnings of $104,649. The reduction in insurance premium
expense from $.23 to $.04 per $100 in deposits will continue to
provide benefit to overall earnings performance for the Company.
The noninterest expense nine month comparison for the period
ended September 30, 1995 compared to nine months ended September
30, 1994 indicates a modest increase of $251,034, or 6.85%. The
above mentioned cost benefits have minimized the effects of
increases in incremental salaries implemented at the beginning
of 1995, increased overhead expenses at the newly acquired
Dellroy branch banking facility, (December 1994) and the
Company's costs associated with the newly implemented employee
401 K program which began March 10, 1995.
Financial Condition
Total assets of the Company increased to $194,584,099 at
September 30, 1995, a 4.82% increase over $185,634,119 at
December 31, 1994. The most significant portion of the increase
was due to continued loan growth which increased by 12.41% from
December 31, 1994. The mix of assets shifted as funds from
maturing investments were reinvested in loans. Installment
loans grew 13.82% and Commercial real estate loans grew 22.08%
over December 31, 1994 totals. The balance sheet growth was
funded through deposit growth, other borrowings and retention of
earnings. Total deposit growth during the nine months ended
September 30, 1995 was 2.18%, with certificates of deposit
greater than $100,000 increasing 11.04% over December 31, 1994
totals.
Capital Resources
Internal capital growth, through the retention of earnings, is
the primary means of maintaining capital adequacy for the
Company. Shareholder equity at September 30, 1995 was
$17,926,689 compared to $16,518,060 at December 31, 1994, an
8.53% increase. This increase includes a $143,535 increase in
equity due to the after tax change in the fair value of
securities categorized as available-for-sale as compared to a
$166,458 reduction in equity for the period ended December 31,
1994. The ratios for Average Equity-to-Average total Assets at
September 30, 1995 and December 31, 1994 were 9.09% and 9.07% ,
respectively.
Regulatory standards require banks and bank holding companies to
maintain capital based on "risk adjusted" assets so that
categories of assets with potentially higher credit risk require
more capital backing than assets with lower risk. Additionally,
banks and bank holding companies are required to maintain
capital to support, on a risk-adjusted basis, certain
off-balance sheet activities such as standby letters of credit
and interest rate swaps.
In order to monitor relative levels of risk throughout the
financial industry, the Federal Reserve Board classifies capital
into two tiers. Tier 1 capital consists of common shareholders'
equity, noncumulative and cumulative perpetual preferred stock,
and minority interests less goodwill. Tier 2 capital consists
of allowance for loan and lease losses, perpetual preferred
stock (not included in Tier 1), hybrid capital instruments, term
subordinated debt, and intermediate-term preferred stock. All
banks are required to meet a minimum ratio of 8.0% of qualifying
total capital to risk-adjusted total assets.
<PAGE>
United Bancorp, Inc.
Management's Discussion And Analysis
Form 10-Q
Capital Resources (Continued)
The Tier 1 capital ratio must be at least 4.0%. Capital
qualifying as Tier 2 capital is limited to 1.25% of gross
risk-weighted assets. The minimum leverage ratio for a bank
holding company is 3.0% calculated by dividing Tier 1 capital by
adjusted total assets. The Federal Deposit Insurance Corporation
Improvement Act of 1991 (FDICIA) required banking regulatory
agencies to revise risk-based capital standards by June 19, 1993
to ensure that they take adequate account of interest rate,
concentration of credit and nontraditional banking activities.
The following table illustrates the Company's risk-weighted
capital ratios at September 30, 1995:
<TABLE>
<CAPTION>
September 30, 1995
<S> <C> <C>
Common Shareholders' Equity $ 17,926,689
Tier 1 Capital $ 17,525,567
Tier 2 Capital $ 1,579,471
Tier 1 and 2 Capital $ 191,102,038
Adjusted Total Assets $ 190,594,277
Total Risk-Adjusted Assets $ 126,357,649
</TABLE>
<TABLE>
<S> <C>
Leverage Ratio 9.20%
Tier 1 Risk-Based Capital Ratio 13.87%
Tier 1 and Tier 2 Risk-Based Capital Ratio 15.12%
</TABLE>
Liquidity
The Company's objective in managing liquidity is to maintain the
ability to continue to meet the cash flow needs of its
customers, such as borrowings or deposit withdrawals, as well as
its own financial commitments. The principal sources of
liquidity are net income, loan payments, maturing investment
securities, investment securities available-for-sale, Federal
funds sold and cash and deposits with banks. Along with its
liquid assets, the Company has additional sources of liquidity
available to ensure that adequate funds are available as needed
which include, but are not limited to, the purchase of Federal
funds, the ability to borrow funds under line of credit
agreements with correspondent banks and a borrowing agreement
with the Federal Home Loan Bank of Cincinnati, Ohio, and the
adjustment of interest rates to obtain depositors. Management
feels that it has the capital adequacy, profitability and
reputation to meet the current and projected needs of its
customers.
For the period ended September 30, 1995, the adjustments to
reconcile net income to net cash from operating activities
consist mainly of depreciation and amortization of premises and
equipment and intangibles, the provision for loan losses, gain
on sales of investment securities, net amortization of
investment securities and net changes in other assets and
liabilities. The most significant outflow of cash from
investing activities was $13,562,000 used due to the net change
in loans. This use of funds was partially offset by a net cash
infusion of $3,566,000 in deposits, $3,871,000 in repurchase
agreements and other borrowed funds and $6,224,000 in proceeds
from maturing investment securities. For a more detailed
illustration of the Company's sources and uses of cash, refer to
the condensed consolidated statements of cash flows.
<PAGE>
United Bancorp, Inc.
Management's Discussion And Analysis
Form 10-Q
Inflation
Substantially all of the Company's assets and liabilities relate
to banking activities and are monetary in nature. The
consolidated financial statements and related financial data are
presented in accordance with Generally Accepted Accounting
Principles (GAAP). GAAP currently requires the Company to
measure the financial position and results of operations in
terms of historical dollars, with the exception of securities
available-for-sale which are measured at fair value. Changes in
the value of money due to rising inflation can cause purchasing
power loss.
Management's opinion is that movements in interest rates affects
the financial condition and results of operations to a greater
degree than changes in the rate of inflation. It should be
noted that interest rates and inflation do effect each other,
but do not always move in correlation with each other. The
Company's ability to match the interest sensitivity of its
financial assets to the interest sensitivity of its liabilities
in its asset/liability management may tend to minimize the
effect of change in interest rates on the Company's performance.
Regulatory Review
The Company is subject to the regulatory requirements of The
Federal Reserve System as a multi-bank holding company. The
affiliate banks, Citizens-Martins Ferry and Citizens-Strasburg
are subject to regulations of The Federal Deposit Insurance
Corporation (FDIC) and the State of Ohio, Division of Banks.
Citizens-Martins Ferry was subject to a FDIC regulatory safety
and soundness review on July 10, 1995 as of the close of
business on March 31, 1995. There were no significant findings,
which upon implementation, would have a material effect on the
holding company or its subsidiary banks.
<PAGE>
United Bancorp, Inc.
Other Information
Form 10-Q
<TABLE>
Part I I Other Information
<S> <C> <S>
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 on Form 8 K
(a) Exhibits
(b) Reports on Form 8 K
The Company filed no Form 8 K's with the Securities
Exchange Commission during the quarter ending
September 30, 1995.
</TABLE>
<PAGE>
United Bancorp, Inc.
Other Information
Form 10-Q
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.
<TABLE>
<C> <C> <C> <S><C>
November 10, 1995 By:________________________________
Date James W. Everson
President and Chief Executive Officer
November 10, 1995 By:________________________________
Date Ronald S. Blake
Treasurer
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 9
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> SEP-30-1995
<CASH> 5884
<INT-BEARING-DEPOSITS> 0
<FED-FUNDS-SOLD> 140
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 15391
<INVESTMENTS-CARRYING> 45744
<INVESTMENTS-MARKET> 46430
<LOANS> 121855
<ALLOWANCE> 1634
<TOTAL-ASSETS> 194584
<DEPOSITS> 166878
<SHORT-TERM> 8447
<LIABILITIES-OTHER> 1332
<LONG-TERM> 0
<COMMON> 1848
0
0
<OTHER-SE> 16079
<TOTAL-LIABILITIES-AND-EQUITY> 194584
<INTEREST-LOAN> 7703
<INTEREST-INVEST> 2868
<INTEREST-OTHER> 67
<INTEREST-TOTAL> 10638
<INTEREST-DEPOSIT> 4663
<INTEREST-EXPENSE> 4879
<INTEREST-INCOME-NET> 5759
<LOAN-LOSSES> 294
<SECURITIES-GAINS> 12
<EXPENSE-OTHER> 3915
<INCOME-PRETAX> 2237
<INCOME-PRE-EXTRAORDINARY> 2237
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1671
<EPS-PRIMARY> .91
<EPS-DILUTED> .91
<YIELD-ACTUAL> 4.32
<LOANS-NON> 35
<LOANS-PAST> 166
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 1438
<CHARGE-OFFS> 118
<RECOVERIES> 20
<ALLOWANCE-CLOSE> 1634
<ALLOWANCE-DOMESTIC> 0
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 419
</TABLE>
