UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
FOR THE QUARTER ENDED SEPTEMBER 30, 1996
Commission File No. 33-12756-B
COMMUNITY BANCORP, INC.
A Massachusetts Corporation
IRS Employer Identification No. 04-2841993
17 Pope Street, Hudson, Massachusetts 01749
Telephone - (508) 568-8321
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
--- ---
Common Stock
$2.50 par value
2,935,012 shares outstanding
as of October 30, 1996
<PAGE>
COMMUNITY BANCORP, INC.
TABLE OF CONTENTS
Page
----
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements:
Consolidated Balance Sheets 3
Consolidated Statements of Income 4
Consolidated Statements of Cash Flow 5-6
Notes to Consolidated Financial Statements 7
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations 8-12
PART II - OTHER INFORMATION
Item 5. Other Information 13
Item 6. Exhibits and Reports on Form 8-K 13
SIGNATURES 14
EXHIBITS Financial Data Schedule (EX-27, Article 9)
-2-
<PAGE>
<TABLE>
PART I - FINANCIAL INFORMATION
COMMUNITY BANCORP, INC.
Item 1. CONSOLIDATED BALANCE SHEETS
<CAPTION>
September 30, December 31,
1996 1995
------------ ------------
<S> <C> <C>
ASSETS
Cash and due from banks $ 17,636,809 $ 12,668,446
Federal funds sold 4,600,000 16,700,000
Securities available for sale, at market 30,494,372 23,790,470
Securities held to maturity (market value
$55,130,938 at 9/30/96 and $50,633,376
at 12/31/95) 55,675,609 50,825,359
Loans 130,994,629 128,072,061
Less allowance for possible loan losses 3,514,631 3,455,098
----------- -----------
Total net loans 127,479,998 124,616,963
Premises and equipment, net 4,808,169 5,126,083
Other assets, net 4,050,304 3,853,475
----------- -----------
Total assets $244,745,261 $237,580,796
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Deposits
Noninterest bearing $ 50,762,377 $ 45,383,886
Interest bearing 160,725,885 161,655,979
----------- -----------
Total deposits 211,488,262 207,039,865
Federal funds purchased and securities
sold under repurchase agreements 12,431,309 9,289,963
Other liabilities 1,588,000 1,710,295
----------- -----------
Total liabilities 225,507,571 218,040,123
Commitments
Stockholders' equity:
Preferred stock, $2.50 par value, 100,000
shares authorized, none issued or outstanding
Common stock, $2.50 par value, 4,000,000
shares authorized, 3,199,218 shares issued,
2,935,012 shares outstanding, (3,158,946
shares outstanding at December 31, 1995) 7,998,045 7,998,045
Surplus 374,581 290,253
Undivided profits 13,265,339 11,463,544
Treasury stock, 264,206 shares, (40,272
shares at December 31, 1995) (2,348,419) (181,224)
Unrealized losses on securities available
for sale, net (51,856) (29,945)
----------- -----------
Total stockholders' equity 19,237,690 19,540,673
----------- -----------
Total liabilities and
stockholders' equity $244,745,261 $237,580,796
=========== ===========
<FN>
See accompanying notes.
</TABLE>
-3-
<PAGE>
<TABLE>
COMMUNITY BANCORP, INC.
CONSOLIDATED STATEMENTS OF INCOME
<CAPTION>
Three months ended Nine months ended
September 30, September 30,
-------------------- --------------------
1996 1995 1996 1995
--------- --------- --------- ---------
<S> <C> <C> <C> <C>
Interest income:
Interest and fees on loans $3,107,269 $3,183,086 $9,329,690 $9,210,908
Interest and div. on securities:
Taxable interest 1,154,114 969,659 3,336,199 2,980,243
Nontaxable interest 37,470 20,532 82,726 68,668
Dividends 13,654 11,190 40,191 37,037
Interest on federal funds sold 136,197 156,109 438,714 189,618
--------- --------- ---------- ----------
Total interest income 4,448,704 4,340,576 13,227,520 12,486,474
--------- --------- ---------- ----------
Interest expense:
Deposits 1,431,519 1,513,352 4,361,959 4,175,750
Short term borrowings 145,585 122,334 386,417 414,330
--------- --------- --------- ---------
Total interest expense 1,577,104 1,635,686 4,748,376 4,590,080
--------- --------- --------- ---------
Net interest income 2,871 600 2,704,890 8,479,144 7,896,394
Provision for loan losses 0 30,000 0 90,000
--------- --------- --------- ---------
Net interest income after
provision for loan losses 2,871,600 2,674,890 8,479,144 7,806,394
Noninterest income:
Merchant credit card assessments 209,754 161,265 611,136 490,995
Service charges 191,141 173,081 572,651 522,641
Other charges, commissions, fees 162,368 143,872 514,192 492,704
Gains (losses) on sales of
loans, net 8,243 20,120 28,182 (30,488)
Other 20,241 8,855 53,378 50,616
--------- --------- --------- ---------
Total noninterest income 591,747 507,193 1,779,539 1,526,468
--------- --------- --------- ---------
Noninterest expense:
Salaries and benefits 1,092,523 1,011,108 3,343,202 3,143,859
Data processing 157,857 116,796 449,126 340,652
Occupancy, net 148,483 149,702 438,049 453,619
Furniture and equipment 89,163 81,869 262,769 242,366
Credit card processing 176,904 148,322 507,048 421,889
Other 415,346 419,846 1,320,606 1,415,603
--------- --------- --------- ---------
Total noninterest expense 2,080,276 1,927,643 6,320,800 6,017,988
--------- --------- --------- ---------
Income before income taxes 1,383,071 1,254,440 3,937,883 3,314,874
Income taxes 543,113 537,165 1,541,115 1,354,385
--------- --------- --------- ---------
Net income $ 839,958 $ 717,275 $2,396,768 $1,960,489
========= ========= ========= =========
Earnings per share $ .264 $ .228 $ .755 $ .623
Dividends per share $ .064 $ .059 $ .187 $ .174
Weighted average number of shares 3,181,474 3,152,530 3,173,281 3,144,721
<FN>
See accompanying notes.
</TABLE>
-4-
<PAGE>
<TABLE>
COMMUNITY BANCORP, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
<CAPTION>
Nine months ended
September 30,
-------------------------
1996 1995
---------- ----------
<S> <C> <C>
Cash flows from operating activities:
Interest received $ 13,214,867 $ 12,516,261
Fees and commissions received 1,762,474 1,495,560
Proceeds from secondary market
mortgage sales 12,744,365 4,474,743
Origination of mortgage loans for
secondary market sales (11,733,586) (4,910,994)
Interest paid (4,805,589) (4,672,139)
Cash paid to suppliers & employees (5,927,232) (5,102,348)
Income taxes paid (1,392,547) (1,079,807)
---------- ----------
Net cash provided by operating activities 3,862,752 2,721,276
---------- ----------
Cash flows from investing activities:
Purchases of securities held to maturity (14,764,819) (9,981,688)
Proceeds from maturities of securities
held to maturity 9,966,355 10,081,408
Purchases of securities available for sale (11,362,861)
Proceeds from maturities of securities
available for sale 4,566,287 3,245,351
Net change in federal funds sold 12,100,000 (8,900,000)
Net change in loans and other real estate
owned (4,122,182) (6,534,665)
Proceeds from sale of other real estate
owned 55,000 147,700
Acquisition of property, plant and equipment (258,885) (366,639)
---------- ----------
Net cash (used in) investing activities (3,821,105) (12,308,533)
---------- ----------
Cash flows from financing activities:
Net change in deposits 4,448,398 15,542,194
Net change in federal funds purchased (1,000,000) (10,900,000)
Net change in repurchase agreements 4,141,346 6,180,107
Purchase of treasury stock (2,318,985) (2,865)
Sale of treasury stock 236,137 111,444
Dividends paid (580,180) (536,229)
---------- ----------
Net cash provided by financing activities 4,926,716 10,394,651
---------- ----------
Net increase in cash and due from banks 4,968,363 807,394
---------- ----------
Cash and due from banks at beginning
of period 12,668,446 11,600,385
---------- ----------
Cash and due from banks at end of period $17,636,809 $12,407,779
========== ==========
<FN>
See accompanying notes.
</TABLE>
-5-
<PAGE>
<TABLE>
COMMUNITY BANCORP, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
Reconciliation of Net Income to Net Cash Provided by Operating Activities
<CAPTION>
Nine months ended
September 30,
-------------------------
1996 1995
---------- ----------
<S> <C> <C>
Net income $ 2,396,768 $ 1,960,489
Adjustments to reconcile net income
to net cash provided by operating
activities:
Decrease (increase) in mortgage loans
held for sale 763,423 (700,135)
Premium on sale of mortgages 247,356 263,884
Depreciation and amortization 631,316 550,391
Provision for loan losses 0 90,000
(Decrease) increase in other liabilities (237,747) 365,256
Increase in taxes payable 148,568 274,578
(Decrease) in interest payable (57,213) (82,059)
(Increase) decrease in other assets (17,065) (30,910)
(Increase) decrease in interest receivable (12,654) 29,783
---------- ----------
Total adjustments 1,465,984 760,788
---------- ----------
Net cash provided by operating activities $ 3,862,752 $ 2,721,276
========== ==========
<FN>
See accompanying notes.
</TABLE>
-6-
<PAGE>
COMMUNITY BANCORP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
SEPTEMBER 30, 1996
________________________________________________________________________
1. BASIS OF PRESENTATION
The accompanying unaudited consolidated financial statements have
been prepared in accordance with generally accepted accounting
principles for interim financial information and with the
instructions to Form 10-Q and Article 10 of Regulation S-X.
Accordingly, they do not include all of the information and notes
required by generally accepted accounting principles for complete
financial statements. In the opinion of management, all adjustments
(consisting of normal recurring accruals) considered necessary for a
fair presentation have been included. The results of operations for
any interim period are not necessarily indicative of results
expected for the full year. These consolidated financial statements
should be read in conjunction with the consolidated financial
statements and notes thereto contained in the Company's Annual
Report to shareholders and Form 10-K for the year ended December 31,
1995.
2. EARNINGS PER SHARE
Earnings per share calculations are based on the weighted average
number of common shares outstanding during the period.
3. FINANCIAL ACCOUNTING STANDARDS BOARD STATEMENT NO. 122, "ACCOUNTING
FOR MORTGAGE SERVICING RIGHTS"
Beginning January 1, 1996, the Company adopted Financial Accounting
Standards Board Statement No. 122, "Accounting for Mortgage
Servicing Rights" (SFAS No. 122), which requires the capitalization
of the cost of originating the rights to service mortgage loans for
others. In addition, capitalized mortgage servicing rights are
required to be assessed for impairment based on the fair value of
those rights. The adoption of SFAS No. 122 resulted in the Company
recording $28,767 in income associated with the origination of
mortgage servicing rights during the nine months ended September 30,
1996.
-7-
<PAGE>
PART I - FINANCIAL INFORMATION
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
Summary
- -------
The Company recorded net income of $2,396,768 for the nine months
ended September 30, 1996, representing an increase of $436,279 or 22.3%
over $1,960,489 for the same period in 1995. Earnings per share of
$.755 for the current period represented an increase of $.132 from $.623
for the nine months ended September 30, 1995.
The Company recorded net income of $839,958 for the three months
ended September 30, 1996, representing an increase of $122,683 or 17.1%
over $717,275 for the corresponding period in 1995. Earnings per share
of $.264 for the current period represented an increase of $.036 from
$.228 for the same period in 1995.
The improvement in net income resulted primarily from an increase in
net interest income and noninterest income, and a decrease in the
provision for possible loan losses and F.D.I.C. deposit insurance
premiums.
Deposits of $211,488,262 at September 30, 1996 increased by
$4,448,397 or 2.1% from $207,039,865 at December 31, 1995. This
increase occurred primarily in noninterest bearing deposit categories.
Interest bearing deposits decreased by $930,094, primarily in the area
of money market deposit accounts, partially offset by an increase in
savings deposits. Noninterest bearing deposits increased by $5,378,491,
primarily in the area of business demand deposit accounts.
Loans of $130,994,629 at September 30, 1996 increased by $2,922,568
or 2.3% from $128,072,061 at December 31, 1995. This increase occurred
primarily in the commercial, home equity and consumer loan portfolios.
Noncurrent loans (nonaccrual loans and loans 90 days or more past due
but still accruing) totalled $876,522 and $1,810,267 at September 30,
1996 and December 31, 1995, respectively. There were no accruing
troubled debt restructurings at September 30, 1996 or December 31, 1995.
Assets of $244,745,261 at September 30, 1996 represented a
$7,164,465 or 3.0% increase from $237,580,796 at December 31, 1995.
Nine months ended September 30, 1996 as Compared To
Nine months ended September 30, 1995
---------------------------------------------------
Net Interest Income
- -------------------
Interest income for the nine months ended September 30, 1996 was
$13,227,520, representing an increase of $741,046 or 5.9% from
$12,486,474 for the nine months ended September 30, 1995, primarily due
to higher loan and securities balances in 1996. Interest expense was
$4,748,376, representing an increase of $157,296 or 3.4% from $4,590,080
for the nine months ended September 30, 1995, primarily due to higher
average interest bearing deposit balances, partially offset by lower
deposit interest rates, in 1996. Net interest income for the nine
months ended September 30, 1996 was $8,479,144, representing an increase
of $582,750 or 7.4% from $7,896,394 for the nine months ended September
30, 1995.
-8-
<PAGE>
Noninterest Income and Expense
- ------------------------------
Noninterest income for the nine months ended September 30, 1996 was
$1,779,539, representing an increase of $253,071 or 16.8% from
$1,526,468 for the nine months ended September 30, 1995. This increase
was primarily the result of increases in merchant credit card
assessments, service charges, other charges, commissions and fees, and
gains on sales of loans.
Noninterest expense for the nine months ended September 30, 1996 of
$6,320,800 was up $302,812 or 5.0% from $6,017,988 for the same period
in 1995. This increase was primarily the result of increases in
salaries and employee benefits, data processing, furniture and equipment
and credit card processing, partially offset by reductions in occupancy
and other expense, including F.D.I.C. deposit insurance premiums which
totalled $191,972 for the nine months ended September 30, 1995 and
$1,500 for the same period in 1996.
Provision for Loan Losses
- -------------------------
The provision for loan losses for the nine months ended September
30, 1996 was $0, representing a $90,000 or 100.0% decrease from $90,000
for the same period in 1995. This decrease was the result of
management's continuing evaluation of the adequacy of the allowance for
loan losses and its belief that the allowance is adequate.
Income Taxes
- ------------
Income tax expense of $1,541,115 for the nine months ended September
30, 1996 compared to $1,354,385 for the same period in 1995, the result
of an increase in taxable income during the current period.
Net Income
- ----------
Net income of $2,396,768 for the first nine months of 1996
represented an increase of $436,279 or 22.3% from $1,960,489 recorded
for the first nine months of 1995. Earnings per share of $.755 for the
current period represented an increase of $.132 from $.623 for the nine
months ended September 30, 1995.
Three Months ended September 30, 1996 as Compared To
Three Months ended September 30, 1995
----------------------------------------------------
Net Interest Income
- -------------------
Interest income for the three months ended September 30, 1996 was
$4,448,704, representing an increase of $108,128 or 2.5% from $4,340,576
for the three months ended September 30, 1995. The increase was
primarily due to higher loan and securities balances in 1996. Interest
expense was $1,577,104, representing a decrease of $58,582 or 3.6% from
$1,635,686 for the three months ended September 30, 1995, primarily due
to lower interest rates, partially offset by moderately higher average
interest bearing deposit balances, in 1996. Net interest income for the
three months ended September 30, 1996 was $2,871,600, representing an
increase of $166,710 or 6.2% from $2,704,890 for the same period in 1995.
-9-
<PAGE>
Noninterest Income and Expense
- ------------------------------
Noninterest income for the three months ended September 30, 1996 was
$591,747, representing an increase of $84,554 or 16.7% from $507,193 for
the three months ended September 30, 1995. This increase was primarily
the result of increases in merchant credit card assessments, service
charges, other charges, commissions and fees, and gains on sales of
loans.
Noninterest expense for the three months ended September 30, 1996 of
$2,080,276 was up $152,633 or 7.9% from $1,927,643 for the three months
ended September 30, 1995. This increase was primarily the result of
increases in salaries and employee benefits, data processing and credit
card processing, partially offset by a reduction in other expense.
Provision for Loan Losses
- -------------------------
The provision for loan losses for the three months ended September
30, 1996 was $0, representing a $30,000 or 100.0% decrease from $30,000
for the three months ended September 30, 1995. This decrease was the
result of management's continuing evaluation of the adequacy of the
allowance for loan losses and its belief that the allowance is adequate.
Income Taxes
- ------------
Income tax expense of $543,113 for the three months ended September
30, 1996 compared to $537,165 for the three months ended September 30,
1995, the result of an increase in taxable income during the current
period.
Net Income
- ----------
Net income of $839,958 for the three months ended September 30, 1996
represented an increase of $122,683 or 17.1% over $717,275 for the three
months ended September 30, 1995. Earnings per share of $.264 for the
current period represented an increase of $.036 from $.228 for the three
months ended September 30, 1995.
Allowance for Possible Loan Losses
- ----------------------------------
The allowance for possible loan losses is maintained at a level
believed by management to be adequate to absorb potential losses in the
loan portfolio. Management's methodology in determining the adequacy of
the allowance considers specific credit reviews, past loan loss
experience, current economic conditions and trends and the volume,
growth and composition of the loan portfolio. Each loan on the
Company's internal Watch List is evaluated periodically to estimate
potential losses. For loans with potential losses, the bank sets aside
or "allocates" a portion of the ALLL against such potential losses. For
the remainder of the portfolio, "unallocated" reserve amounts are
determined based on judgements regarding the type of loan, economic
conditions and trends, potential exposure to loss and other factors.
The allowance for possible loan losses is charged when management
determines that the repayment of the principal on a loan is in doubt.
Subsequent recoveries, if any, are credited to the allowance. At
September 30, 1996, the balance in the allowance was $3,514,631,
representing 222% of noncurrent loans, compared to $3,455,098 or 191% of
noncurrent loans at December 31, 1995.
-10-
<PAGE>
Securities
- ----------
The Company's securities portfolio consists of obligations of the
U.S. Treasury, U.S. government sponsored agencies, mortgage backed
securities and obligations of municipalities in the Company's market
area. Those assets are used in part to secure public deposits and as
collateral for repurchase agreements.
Total securities were $86,169,981 at September 30, 1996,
representing an increase of $11,554,152 or 15.5% from $74,615,829 at
December 31, 1995. At September 30, 1996, $30,494,372 in securities
were classified as "available for sale". There were no sales of
securities during the nine months ended September 30, 1996.
Liquidity and Capital Resources
- -------------------------------
The Company's primary sources of liquidity are customer deposits,
amortization and pay-offs of loan principal and maturities of investment
securities. These sources provide funds for loan originations, the
purchase of investment securities and other activities. Deposits are
considered a relatively stable source of funds. At September 30, 1996,
1995 and 1994, deposits were $211.5, $202.4 and $185.0 million,
respectively. Management anticipates that deposits will remain
relatively stable or grow moderately during the remainder of 1996.
As a nationally chartered member of the Federal Reserve System, the
Bank has the ability to borrow funds from the Federal Reserve Bank of
Boston by pledging certain of its investment securities as collateral.
Also, the Bank is a member of the Federal Home Loan Bank which provides
additional borrowing opportunities.
On August 15, 1996, the Company implemented an Offer to Purchase up
to 222,222 shares of its outstanding common stock at a price of $9.00
per share, as filed with the Commission on Schedule 13E-4. The Offer
expired at 5:00 p.m. E.D.T., on September 13, 1996, with 257,665 shares
tendered. As provided in the Offer, the Company increased the number of
Shares sought in the Offer by approximately 1.1% of the outstanding
shares and purchased all 257,665 shares tendered under the Offer. There
was no proration of shares. As a result of the repurchase of shares,
the Company's capital was reduced by $2,318,985.
Bank regulatory authorities have established a capital measurement
tool called "Tier 1" leverage capital. A 3.00% ratio of Tier 1 capital
to assets now constitutes the minimum capital standard for banking
organizations. At September 30, 1996, the Company's Tier 1 leverage
capital ratio was 7.87%. In addition, regulatory authorities have also
implemented risk-based capital guidelines requiring a minimum ratio of
Tier 1 capital to risk weighted assets of 4.00% and a minimum ratio of
total capital to risk-weighted assets of 8.00. At September 30, 1996
the Company's Tier 1 and total risk-based capital ratios were 13.73% and
15.00%, respectively. Both the Company and the Bank are categorized as
"well capitalized" under the Federal Deposit Insurance Corporation
Improvement Act of 1991 (F.D.I.C.I.A.).
On September 17, 1996, the Company's Board of Directors declared a
third quarter 1996 cash dividend of $.064 per share of common stock to
shareholders of record at September 1, 1996, payable on October 15, 1996.
-11-
<PAGE>
Asset/Liability Management
- --------------------------
The Company has an asset/liability management committee which
oversees all asset/liability activities of the Company. The committee
establishes general guidelines each year and meets regularly to review
the Company's operating results and to make strategic changes when
necessary.
It is the Company's general policy to reasonably match the rate
sensitivity of its assets and liabilities. A common benchmark of this
sensitivity is the one year gap position, which is a reflection of the
difference between the speed and magnitude of rate changes of interest
rate sensitive liabilities as compared with the Bank's ability to adjust
the rates of it's interest rate sensitive assets in response to such
changes. The Company's positive cumulative one year gap position at
September 30, 1996, representing the excess of repricing assets versus
repricing liabilities within a one year time frame, was 9.8% of total
assets.
-12-
<PAGE>
PART II - OTHER INFORMATION
---------------------------
Item 5. OTHER INFORMATION
On August 15, 1996, the Company implemented an Offer to Purchase up
to 222,222 shares of its outstanding common stock at a price of
$9.00 per share, as filed with the Commission on Schedule 13E-4.
The Offer expired at 5:00 p.m. E.D.T., on September 13, 1996, with
257,665 shares tendered. As provided in the Offer, the Company
increased the number of Shares sought in the Offer by approximately
1.1% of the outstanding shares and purchased all 257,665 shares
tendered under the Offer. There was no proration of shares. As a
result of the repurchase of shares, the Company's capital was
reduced by $2,318,985.
On September 17, 1996, the Company's Board of Directors declared a
third quarter 1996 cash dividend of $.064 per share of common stock
to shareholders of record at September 1, 1996, payable on October
15, 1996.
Item 6. EXHIBITS AND REPORTS ON FORM 8-K
(b) The Company did not file a Form 8-K during the quarter ended
September 30, 1996.
-13-
<PAGE>
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.
COMMUNITY BANCORP, INC.
-----------------------
Date: October 30, 1996 By: /s/ James A. Langway
--------------------------
James A. Langway
President & Chief Executive Officer
Principal Executive Officer
Date: October 30, 1996 By: /s/ Donald R. Hughes, Jr.
--------------------------
Donald R. Hughes, Jr.
Treasurer and Clerk
Principal Financial Officer and
Principal Accounting Officer
-14-
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 9
<LEGEND>
This schedule contains summary financial information extracted from the
unaudited September 30, 1996 consolidated financial statements of
Community Bancorp, Inc. and is qualified in its entirety by reference
to such financial statements.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> SEP-30-1996
<CASH> 17636809
<INT-BEARING-DEPOSITS> 0
<FED-FUNDS-SOLD> 4600000
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 30494372
<INVESTMENTS-CARRYING> 55675609
<INVESTMENTS-MARKET> 55130938
<LOANS> 130994629
<ALLOWANCE> 3514631
<TOTAL-ASSETS> 244745261
<DEPOSITS> 211488262
<SHORT-TERM> 12431309
<LIABILITIES-OTHER> 1588000
<LONG-TERM> 0
0
0
<COMMON> 7998045
<OTHER-SE> 11239645
<TOTAL-LIABILITIES-AND-EQUITY> 244745261
<INTEREST-LOAN> 9329690
<INTEREST-INVEST> 3459116
<INTEREST-OTHER> 438714
<INTEREST-TOTAL> 13227520
<INTEREST-DEPOSIT> 4361959
<INTEREST-EXPENSE> 4748376
<INTEREST-INCOME-NET> 8479144
<LOAN-LOSSES> 0
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 6320800
<INCOME-PRETAX> 3937883
<INCOME-PRE-EXTRAORDINARY> 3937883
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 2396768
<EPS-PRIMARY> .755
<EPS-DILUTED> .755
<YIELD-ACTUAL> 5.20
<LOANS-NON> 876522
<LOANS-PAST> 706478
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 3455098
<CHARGE-OFFS> 190292
<RECOVERIES> 249825
<ALLOWANCE-CLOSE> 3514631
<ALLOWANCE-DOMESTIC> 1665807
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 1848824
</TABLE>
