<TABLE>
INTERCHANGE FINANCIAL SERVICES CORPORATION
CONSOLIDATED BALANCE SHEETS
(in thousands)
<CAPTION>
September 30, December 31,
1995 1994
----------- -----------
<S> <C> <C>
ASSETS
Cash and due from banks $21,123 $22,865
Federal funds sold 1,450 3,100
------ ------
Total cash and cash equivalents 22,573 25,965
------ ------
Investment securities at amortized cost (approximate
market value of $116,223 and $116,718) 115,443 121,512
Securities available for sale at estimated market value
(amortized cost of $31,176 and $30,079) 30,267 27,269
Loans 294,517 290,654
Less: Allowance for loan losses 3,758 3,839
------- -------
Net loans 290,759 286,815
------- -------
Premises and equipment, net 5,455 4,606
Foreclosed real estate 1,255 880
Accrued interest receivable and other assets 10,209 12,265
------ ------
TOTAL ASSETS $475,961 $479,312
======== ========
LIABILITIES
Deposits
Non-interest bearing $ 64,361 $ 66,435
Interest bearing 363,920 357,735
------- -------
Total deposits 428,281 424,170
Short-term borrowings 5,100 11,702
Accrued interest payable and other liabilities 3,731 3,311
Long-term borrowings 1,250 5,000
------- ------
Total liabilities 438,362 444,183
------- -------
STOCKHOLDERS' EQUITY
Preferred stock
- 5,000
Common stock 4,495 4,495
Capital surplus 12,110 11,333
Retained earnings 21,581 18,737
Unrealized losses on securities available for sale,
net of income taxes (587) (1,813)
------- ------
37,599 37,752
Less: Treasury stock
- 2,623
------ ------
Total stockholders' equity 37,599 35,129
------ ------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $475,961 $479,312
======= =======
See notes to consolidated financial statements
</TABLE>
<PAGE>
<TABLE>
INTERCHANGE FINANCIAL SERVICES CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(in thousands except per share data)
<CAPTION>
Three months ended Nine months ended
September 30, September 30,
------------------- --------------------
1995 1994 1995 1994
----- ---- ---- ----
<S> <C> <C> <C> <C>
INTEREST INCOME
Interest and fees on loans $6,878 $6,246 $ 20,368 $17,017
Interest on federal funds sold 179 24 368 320
Interest and dividends on securities
Taxable interest income 2,235 2,185 6,791 6,280
Interest income exempt from federal income taxes 12 15 41 48
Dividends 43 40 123 113
----- ----- ------ ------
TOTAL INTEREST INCOME 9,347 8,510 27,691 23,778
INTEREST EXPENSE
Interest on deposits 3,730 2,662 10,813 7,596
Interest on short-term borrowings 90 116 352 124
Interest on long-term borrowings 23 - 130 -
----- ----- ------ -----
TOTAL INTEREST EXPENSE 3,843 2,778 11,295 7,720
----- ----- ------ -----
NET INTEREST INCOME 5,504 5,732 16,396 16,058
Provision for loan losses 225 225 825 675
----- ----- ------ ------
NET INTEREST INCOME AFTER PROVISION
FOR LOAN LOSSES 5,279 5,507 15,571 15,383
----- ----- ------ ------
NON-INTEREST INCOME
Service fees on deposit accounts 375 408 1,110 1,132
Net gain/(loss) on sale of loans available for sale - (29) 22 (14)
Net gain on sale of securities available for sale - - 15 -
Accretion of discount in connection with acquisition 190 190 570 570
Other 256 360 1,233 1,166
----- ---- ----- -----
TOTAL NON-INTEREST INCOME 821 929 2,950 2,854
----- ---- ----- ----
NON-INTEREST EXPENSES
Salaries and benefits 1,798 1,712 5,468 5,149
Net occupancy 522 479 1,547 1,475
Furniture and equipment 177 147 506 479
Advertising and promotion 201 164 580 509
Federal Deposit Insurance Corporation assessment (14) 230 451 654
Foreclosed real estate expense 46 47 156 264
Other 1,193 1,122 3,155 3,181
----- ----- ------ ------
TOTAL NON-INTEREST EXPENSES 3,923 3,901 11,863 11,711
----- ----- ------ ------
Income before income taxes 2,177 2,535 6,658 6,526
Income taxes 762 905 2,273 2,316
----- ----- ------- ------
NET INCOME $1,415 $1,630 $4,385 $4,210
===== ===== ====== ======
PER COMMON SHARE $0.51 $0.59 $1.59 $1.53
===== ===== ====== ======
See notes to consolidated financial statements
</TABLE>
<PAGE>
<TABLE>
INTERCHANGE FINANCIAL SERVICES CORPORATION
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
(in thousands)
<CAPTION>
Unrealized
Losses on
Securities
Preferred Common Capital Retained Available Treasury
Stock Stock Surplus Earnings for Sale Stock Total
--------- ------ ------- -------- ---------- -------- -----
<S> <C> <C> <C> <C> <C> <C> <C>
Balance at January 1, 1994 $5,000 $4,495 $11,333 $15,100 $ 9 $(2,623) $33,314
Net income 4,210 4,210
Dividends on common stock
at $0.525 per share (1,415) (1,415)
Dividends on preferred stock (84) (84)
Decrease in market valuation-
securities available for sale,
net of income taxes (1,752) (1,752)
------ ----- ------ ------ ------ ------ ------
Balance at September 30, 1994 5,000 4,495 11,333 17,811 (1,743) (2,623) 34,273
Net income 1,426 1,426
Dividends on common stock
at $0.175 per share (472) (472)
Dividends on preferred stock (28) (28)
Decrease in market valuation-
securities available for sale,
net of income taxes (70) (70)
------ ----- ------ ------ ----- ------ ------
Balance at December 31, 1994 5,000 4,495 11,333 18,737 (1,813) (2,623) 35,129
Net income 4,385 4,385
Dividends on common stock
at $0.54 per share (1,456) (1,456)
Dividends on preferred stock (85) (85)
Purchase of 32,000 preferred stock
Retirement of 100,000 shares (1,600) (1,600)
of preferred stock (5,000) 777 4,223 -
Increase in market valuation-
securities available for sale,
net of income taxes 1,226 1,226
------ ----- ------ ------ ----- ------ -------
Balance at September 30 , 1995 $ - $4,495 $12,110 $21,581 $ (587) $ - $37,599
====== ===== ====== ======= ====== ====== =======
See notes to consolidated financial statements.
</TABLE>
<PAGE>
<TABLE>
INTERCHANGE FINANCIAL SERVICES CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
<CAPTION>
For the nine months ended
September 30,
--------------------------
1995 1994
--------------------------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net income $4,385 $4,210
Non-cash items included in earnings
Depreciation and amortization of fixed assets 618 636
Amortization of securities premiums 1,106 1,167
Accretion of securities discounts (40) (6)
Amortization of premiums in connection with acquisition 333 292
Accretion of discount in connection with acquisition (570) (570)
Provision for loan losses 825 675
Reduction in carrying value of foreclosed real estate - 100
Net gain on sale of securities available for sale (15) -
Net gain on sale of loans available for sale (22) 14
Net gain on sale of foreclosed real estate (13) (209)
Increase in carrying value of loans available for sale (74) -
Loss on sale of fixed assets 27 -
(Increase) decrease in operating assets
Net origination of loans available for sale (484) (15,454)
Proceeds from sale of loans available for sale 837 2,129
Premium in connection with acquisition - (1,724)
Accrued interest receivable 56 (637)
Other 1,008 (295)
Increase in operating liabilities
Accrued interest payable 226 38
Other 194 11
----- ------
CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES 8,397 (9,623)
----- ------
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from (payments for)
Net origination of loans (4,407) (231)
Purchase of loans (642) (33,644)
Sale of loans - 1,809
Purchase of securities available for sale (4,915) (1,018)
Maturities of securities available for sale 1,351 2,592
Sale of securities available for sale 2,484 185
Sale of foreclosed real estate 309 1,066
Purchase of investment securities (3,999) (10,585)
Maturities of investment securities 9,000 12,000
Advances on foreclosed real estate (78) (106)
Purchase of fixed assets (1,514) (526)
Sale of fixed assets 4 -
----- ------
CASH USED FOR INVESTING ACTIVITIES (2,407) (28,458)
----- ------
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from (payments for)
Deposits in excess of withdrawals 4,111 2,685
Retirement of other borrowings (10,352) (407)
Acquisition of deposit accounts - 26,468
Dividends (1,541) (1,499)
Preferred stock (1,600) -
Short-term borrowings - 8,602
----- ------
CASH (USED FOR) PROVIDED BY FINANCING ACTIVITIES (9,382) 35,849
----- ------
DECREASE IN CASH AND CASH EQUIVALENTS (3,392) (2,232)
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR 25,965 26,568
------ ------
CASH AND CASH EQUIVALENTS, END OF PERIOD $22,573 $24,336
====== ======
Supplemental disclosure of cash flow information: Cash paid for:
Interest $11,069 $7,682
Income taxes 2,524 2,716
Supplemental disclosure of non-cash investing activities:
Loans transferred to foreclosed real estate 593 644
Securitization of loans reclassified to securities
available for sale - 27,888
(Increase) decrease-market valuation of securities
available for sale $(1,901) $2,702
See notes to consolidated financial statements
</TABLE>
<PAGE>
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1995
1. FINANCIAL STATEMENTS
--------------------
The consolidated financial statements should be read in conjunction with
the financial statements and schedules as presented in the Annual Report on Form
10-K of Interchange Financial Services Corporation (the "Company") for the year
ended December 31, 1994.
Consolidated financial statements for the nine months ended September 30,
1995 and 1994 are unaudited but reflect all adjustments consisting of only
normal recurring adjustments which are, in the opinion of management, considered
necessary for a fair presentation of the financial condition and results of
operations for the interim periods. Results for interim periods are not
necessarily indicative of results to be expected for any other period or the
full year.
2. LEGAL PROCEEDINGS
-----------------
Interchange State Bank (the "Bank"), a wholly owned subsidiary of the
Company, was a defendant in a lawsuit commenced in April 1989, (Great American
Mortgage Corp., et al vs. Robert Utter, et al.) filed in Superior Court of New
Jersey alleging that the Bank was statutorily liable in conversion for having
paid checks drawn on demand deposit accounts of plaintiffs at the Bank bearing
forged or irregular endorsements.
On December 2, 1992, the Court directed judgment to be entered against the
Bank in the total principal sum of $484 thousand with prejudgment interest. On
April 5, 1993, the Bank filed a Notice of Appeal of this judgment and, by virtue
of post-judgment motions, the amount was reduced to the principal sum of $311
thousand plus pre-judgment interest. This judgment was appealed and, by virtue
of this appeal, the amount was further reduced to $245 thousand. The matter
remained on appeal until May 8, 1995 at which time, by Court order, the matter
was settled. Pursuant thereto, the Bank has paid a total of $89 thousand against
the aforesaid judgment, which has now been discharged of record. The Bank
continues to pursue various parties for recoupment of the aforesaid monies under
which it is likely that the Bank's liability for the payment will either be
reduced to its proportionate share under contribution theories or it will be
exonerated under indemnification theories.
In a related matter, on January 8, 1993, an interlocutory judgment was
entered against the Bank in the principal sum of $120 thousand with prejudgment
interest. The Bank has appealed this judgment and a stay of execution has been
effected.
In 1992, the Company accrued $500 thousand as a provision for an adverse
judgment in this litigation. Based on the May 8, 1995 partial settlement of
these matters, the Company has reduced the reserve by $250 thousand to $161
thousand which the Company and its legal counsel believe is adequate to cover
any remaining liabilities related to these matters.
The Company is also a party to routine litigation involving various aspects
of its business, none of which, in the opinion of management, after consultation
with legal counsel, is expected to have a material, adverse impact on the
consolidated financial condition, results of operations or liquidity of the
Company.
3. REDEMPTION OF PREFERRED STOCK
-----------------------------
During the third quarter of 1995, the Company exercised its option and
acquired the remaining 32,000 outstanding shares of its preferred stock. The
redemption price was fifty ($50) dollars per share plus any accrued but unpaid
dividends to the date of redemption.
4. LEGISLATIVE PROPOSAL
--------------------
A recent legislative proposal for the recapitalization of the Savings
Association Insurance Fund ("SAIF") through a one-time assessment against SAIF
members and other qualified depository institutions could result in an
assessment against the Company. The Company is a qualified depository
institution ("Oakar Bank") as a result of acquiring the SAIF deposits of
Volunteer Federal Savings Association in February 1994. The assessment could
amount to as much as $179 thousand ($21 million x 0.85%) to $189 thousand ($21
million x 0.90%), based upon Oakar deposits as of March 31, 1995. Amendments to
the legislative proposal are being considered which may reduce the assessment to
Oakar banks.
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following discussion is an analysis of the consolidated financial
condition and results of operations of the Company for the three and nine months
ended September 30, 1995 and 1994 and should be read in conjunction with the
consolidated financial statements and notes thereto included in Item 1 hereof.
RESULTS OF OPERATIONS
- ---------------------
Earnings Summary
----------------
Net income in the first nine months of 1995 improved $175 thousand or 4.2%
over the comparable 1994 period. The increase was primarily attributable to the
increase in net interest income of $338 thousand for the nine-month period ended
September 30, 1995 over the same period a year ago. The improvement in net
interest income resulted from a 6.6% increase in average earning assets for the
nine-month period ended September 30, 1995 over the same period a year ago. For
the same periods, net yield on average earning assets decreased twenty-two basis
points. Earnings for the period were also beneficially affected by a $247
thousand Bank Insurance Fund ("BIF") recapitalization rebate. The rebate was for
Federal Deposit Insurance Corporation ("FDIC") assessment overpayments made
during the first three quarters of 1995 resulting from a legislative reduction
to the FDIC assessment rates. In addition, earnings were favorably impacted by
the settlement of a 1992 lawsuit against the banking subsidiary which resulted
in a $250 thousand reduction of a previously established reserve, adding $162
thousand to net income during the second quarter. Furthermore, earnings were
positively affected by an increase of $103 thousand in the recognition of
discounts related to purchased loans.
Earnings for the period were negatively impacted by an increase in the
provision for loan losses of $150 thousand which was recorded in the second
quarter. Earnings for the period were adversely affected by an increase in
non-interest expenses of $152 thousand. The increase in non-interest expenses
was primarily caused by a $319 thousand increase in salaries and benefits. The
increase resulted from annual salary increases and new employees. Increases in
other non-interest expenses were offset by a reduction of $250 thousand to the
litigation reserve recorded in the second quarter and the $247 BIF
recapitalization rebate discussed above.
The Company's most important revenue source is net interest income which is
the difference between interest earned on its interest earning assets, such as
loans and investments, and the interest paid on its interest bearing
liabilities, primarily deposits. Changes in net interest income from period to
period result from increases or decreases in the average balances of interest
earning assets and interest bearing liabilities and increases or decreases in
the spread between the average rates earned on such assets and the average rates
paid on such liabilities.
For the nine months ended September 30, 1995, net interest income on a tax
equivalent basis, was $16.4 million, an increase of 2.1% over net interest
income of $16.1 million in the same period in 1994. The principal factor in this
improvement was an increase of approximately 6.6% in average interest earning
assets resulting from loan acquisitions of $25.7 million in June 1994 and $6.9
million in October 1994. An increase in interest expense offset most of the
positive effects derived from interest earning assets. Interest expense
increased due to an increase of 5.8% in average interest bearing liabilities
compounded by a shift of deposits from savings and demand to certificates. As of
September 30, 1995, the year-to-date average balance of certificates of deposit
increased $23.3 million to $145.8 million from the same period a year ago. For
the nine months ended September 30, 1995, the average balance of certificates of
deposit represented 39.4% of average interest bearing liabilities as compared to
35.1% for the same period a year ago. As of the third quarter 1995, the average
rate paid on certificates exceeded the average rate paid on all other deposits
by approximately 2.17%.
For the three months ended September 30, 1995, net income was $1.4 million,
a decrease of $215 thousand or 13.2% from the same period in 1994. The drop in
net income resulted from a decrease in net interest and non-interest income.
The principal factor contributing to a decline in net interest income for
the third quarter 1995 was an increase in interest costs. Interest costs
increased due to a 3.3% increase in average interest bearing liabilities in
conjunction with a shift from lower-cost savings accounts to higher-cost CDs.
The average balance of CDs for the third quarter 1995 was $150.1 million, an
increase of $26.6 million over the comparable 1994 period. The average rate paid
on CDs during the third quarter 1995 exceeded the average rate paid on all other
deposits by approximately 2.56%.
For the third quarter 1995, non-interest income decreased $108 thousand
from the previous comparable period. The decrease was due to a third quarter
1994 gain of $40 thousand that was not repeated in 1995. In addition, in the
third quarter 1995, gains from collections of purchased loans in excess of their
carrying values declined $84 thousand from the same period a year ago.
Earnings for the quarter benefited from a $247 thousand Bank Insurance Fund
recapitalization rebate.
Nonperforming Assets
--------------------
Nonperforming assets, consisting of nonaccrual loans, restructured loans
and foreclosed real estate, decreased $1.9 million from $7.6 million at December
31, 1994 to $5.7 million at September 30, 1995. In the third quarter of 1995
nonperforming assets decreased $325 thousand from $6.1 million at June 30, 1995.
The ratio of nonperforming assets to total loans and foreclosed real estate
decreased from 2.6% at December 31, 1994 to 1.9% at September 30, 1995.
Provision for Loan Losses and Loan Loss Experience
--------------------------------------------------
The provision for loan losses represents management's determination of the
amount necessary to bring the allowance for loan losses to a level that
management considers adequate to reflect the risk of future losses inherent in
the Company's loan portfolio. In its evaluation of the adequacy of the allowance
for loan losses, management considers past loan loss experience, changes in the
composition of nonperforming loans, the condition of borrowers facing financial
pressure, the relationship of the current level of the allowance to the loan
portfolio and to nonperforming loans and existing economic conditions. However,
the process of determining the adequacy of the allowance is necessarily
judgmental and subject to changes in external conditions. Accordingly, there can
be no assurance that existing levels of the allowance will ultimately prove
adequate to cover actual loan losses.
The allowance for loan losses was $3.8 million at September 30, 1995 and
December 31, 1994 representing 65.4% and 50.7% of nonperforming assets at those
dates, respectively.
<PAGE>
<TABLE>
Securities
Investment securities and securities available for sale consist of the following: (in thousands)
<CAPTION>
September 30, 1995
--------------------------------------------------------------------
Gross Gross
Amortized Unrealized Unrealized Market
Cost Gains Losses Value
-------- ---------- ---------- ------
<S> <C> <C> <C> <C>
Investment securities
Obligations of U.S. Treasury $111,444 $1,503 $678 $112,269
Obligations of U.S. Agencies 3,999 - 45 3,954
------- ----- ---- -------
115,443 1,503 723 116,223
------- ----- ---- -------
Securities available for sale
Obligations of U.S. agencies 27,837 25 952 26,910
Obligations of states and
political subdivisions 757 16 - 773
Other debt securities 148 2 - 150
Equity securities 2,434 - - 2,434
------ ---- --- ------
31,176 43 952 30,267
------ ---- --- ------
Total securities $146,619 $1,546 $1,675 $146,490
======= ===== ===== =======
<CAPTION>
December 31, 1994
------------------------------------------------------------------
Gross Gross
Amortized Unrealized Unrealized Market
Cost Gains Losses Value
---------- ---------- ----------- -------
<S> <C> <C> <C> <C>
Investment securities
Obligations of U.S. Treasury $121,512 $ 47 $4,841 $116,718
-------- ------ ------ --------
Securities available for sale
Obligations of U.S. agencies 26,855 - 2,823 24,032
Obligations of states and
political subdivisions 1,442 12 2 1,452
Other debt securities 147 3 - 150
Equity securities 1,635 - - 1,635
------- ------ ------ -------
30,079 15 2,825 27,269
------- ------ ------ -------
Total securities $151,591 $ 62 $7,666 $143,987
======= ====== ====== =======
</TABLE>
<PAGE>
<TABLE>
At September 30, 1995, the contractual maturities of investment securities and securities available
for sale are as follows: (in thousands)
<CAPTION>
Securities
Investment Securities Available for Sale
---------------------------- -------------------------
Amortized Market Amortized Market
Cost Value Cost Value
---------- ------ --------- ------
<S> <C> <C> <C> <C>
Within 1 year $ 19,173 $ 19,184 $ 487 $ 489
After 1 but within 5 years 82,488 82,869 4,191 4,222
After 5 but within 10 years 13,782 14,170 123 125
After 10 years - - 23,941 22,997
Equity securities - - 2,434 2,434
------ ------ ------ ------
Total $115,443 $116,223 $31,176 $30,267
======= ======= ====== ======
</TABLE>
<TABLE>
Capital Adequacy
The table below presents the Company's capital position as of September 30, 1995: (dollars in thousands)
<S> <C>
Stockholders' equity $ 37,599
Intangible assets (2,088)
Unrealized loss-securities available for sale 587
------
Tier 1 capital 36,098
Allowable portion of allowance
for loan losses 3,554
-------
Total risk-based capital $39,652
=======
Risk weighted assets $284,298
========
<CAPTION>
Minimum
Actual Requirement
------ -----------
<S> <C> <C>
Risk-based ratio
Tier 1 12.71% 4.00%
Total 13.95 8.00
Leverage capital ratio 7.56 3.00
</TABLE>
<PAGE>
Liquidity
---------
Liquidity is the ability to provide promptly and economically the funds
necessary to meet customer credit needs and satisfy deposit withdrawal
requirements. The Bank's primary sources of funds are deposits, together with
principal and interest payments on loans and proceeds from securities. During
1994, the Company supplemented these sources of funds with $18 million of
borrowings from the Federal Home Loan Bank of New York ("FHLB"). As of September
30, 1995, the outstanding balance from such borrowings amounted to $5 million.
To help meet liquidity needs, the Bank had cash and cash equivalents
totaling $22.6 million at September 30, 1995 down from $26.0 million at December
31, 1994. In addition, as of September 30, 1995, securities maturing within one
year amounted to $19.7 million up from $15.3 million at December 31, 1994.
The Bank's borrowing capabilities continue to be a potential source of
liquidity. In addition, the Bank has a variety of sources of short-term
liquidity available, including federal funds purchased from correspondent banks,
the Federal Reserve discount window, credit services through its membership in
the Federal Home Loan Bank, sales of securities under repurchase agreements as
well as loan participation or sales of loans and sales of securities available
for sale.
The Company believes that these sources of liquidity are adequate to meet
its needs.
<PAGE>
PART II OTHER INFORMATION
Item 1. Legal Proceedings
-----------------
Reference is made to Form 10-Q filed for the quarter ended June 30,
1995.
Item 6. Exhibits and Reports on Form 8-K
--------------------------------
(a) The following exhibits are furnished herewith: Exhibit No.
11 Statement Re: Computation of Per Share Earnings
(b) No reports on Form 8-K have been filed during the quarter ended
September 30, 1995.
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized. Interchange Financial Services
Corporation
by: /s/Anthony S. Abbate
--------------------
Anthony S. Abbate
President/CEO
<TABLE>
Exhibit 11
Computation of Per Share Earnings
(in thousands, except per share data)
<CAPTION>
Three months ended Nine months ended
September 30, September 30,
----------------------- -------------------
1995 1994 1995 1994
---- ---- ---- ----
<S> <C> <C> <C> <C>
Net income $ 1,415 $ 1,630 $4,385 $ 4,210
Preferred dividend requirements $ 28 $ 28 $ 85 $ 84
Weighted average common shares outstanding 2,697 2,697 2,697 2,697
----- ----- ----- -----
Net income per common share $ 0.51 $ 0.59 $ 1.59 $ 1.53
======= ====== ====== ======
</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> 21,123
<INT-BEARING-DEPOSITS> 0
<FED-FUNDS-SOLD> 1,450
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 30,267
<INVESTMENTS-CARRYING> 115,443
<INVESTMENTS-MARKET> 116,223
<LOANS> 294,517
<ALLOWANCE> 3,758
<TOTAL-ASSETS> 475,961
<DEPOSITS> 428,281
<SHORT-TERM> 5,100
<LIABILITIES-OTHER> 3,731
<LONG-TERM> 1,250
<COMMON> 4,495
0
0
<OTHER-SE> 33,104
<TOTAL-LIABILITIES-AND-EQUITY> 475,961
<INTEREST-LOAN> 20,368
<INTEREST-INVEST> 6,955
<INTEREST-OTHER> 368
<INTEREST-TOTAL> 27,691
<INTEREST-DEPOSIT> 10,813
<INTEREST-EXPENSE> 11,295
<INTEREST-INCOME-NET> 15,571
<LOAN-LOSSES> 825
<SECURITIES-GAINS> 15
<EXPENSE-OTHER> 11,863
<INCOME-PRETAX> 6,658
<INCOME-PRE-EXTRAORDINARY> 4,385
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 4,385
<EPS-PRIMARY> 1.59
<EPS-DILUTED> 1.59
<YIELD-ACTUAL> 4.950
<LOANS-NON> 4,022
<LOANS-PAST> 59
<LOANS-TROUBLED> 467
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 3,839
<CHARGE-OFFS> 1,007
<RECOVERIES> 101
<ALLOWANCE-CLOSE> 3,758
<ALLOWANCE-DOMESTIC> 3,454
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 304
</TABLE>
