<PAGE>
U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-QSB
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended____March 31, 1995________________________
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from___________ to___________
Commission file number 0-13664
____________________GRANGE NATIONAL BANC CORP___________________________
(Exact name of registrant as specified in its charter)
________________PENNSYLVANIA__________ ____________23-2314065_________
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
198 E. TIOGA STREET
________TUNKHANNOCK, PENNSYLVANIA_______
(Address of principal executive offices)
__________(717)_836-2100_________________
(Issuer's telephone number)
_________________________________________
Former name, former address and former fiscal year, if
changed since last report.
Check whether the issuer (1) 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 periods 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___
APPLICABLE ONLY TO CORPORATE ISSUERS
<PAGE>
State the number of shares outstanding of each of the issuer's classes of common
equity, as of the latest practical date: 345,627
Transitional Small Business Disclosure Format (Check one):
Yes ; No X
<PAGE>
GRANGE NATIONAL BANC CORP. AND SUBSIDIARY
PART I. FINANCIAL INFORMATION
ITEM 1. Financial Statements
<TABLE>
<CAPTION>
Page
----
<S> <C>
Unaudited Financial Statements:
Consolidated Balance Sheets as of March 31, 1995
and December 31, 1994............................. 2
Consolidated Statements of Income For the Three
Months Ended March 31, 1995....................... 3
Consolidated Statements of Changes in Stockholders'
Equity For the Three Months Ended March 31, 1995
and 1994.......................................... 4
Consolidated Statements of Cash Flows For the
Three Months ended March 31, 1995 and 1994........ 5
Notes to Consolidated Financial Statements........ 6 - 8
ITEM 2. Management's Discussion and Analysis of
Financial Condition........................... 9 - 12
Results of Operations............................. 13
PART 11. OTHER INFORMATION:
ITEM 6. Exhibits and Reports on Form 8-K............. 14
</TABLE>
<PAGE>
GRANGE NATIONAL BANC CORP. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS, MARCH 31, 1995 AND DECEMBER 31, 1994
<TABLE>
<CAPTION>
1995 1994
(UNAUDITED) (AUDITED)
----------- -----------
<S> <C> <C>
ASSETS:
Cash and due from banks................... $1,668,022 $1,486,145
Investment securities, held to maturity
(market value 1995, $13,079,000; 1994,
$11,143,000)............................ 13,150,583 11,412,673
Investment securities, available for sale
(Note 3)................................ 6,483,225 8,619,700
Interest bearing deposits................. 6,625,184 5,501,885
Loans, net of unearned interest........... 48,379,760 46,733,322
Less: allowance for loan losses.......... 479,535 479,390
----------- -----------
Loans - net........................ 47,900,225 46,253,932
Bank premises and equipment - net......... 2,296,855 2,201,107
Other real estate......................... 232,264 187,071
Accrued interest and other assets......... 775,388 642,814
----------- -----------
TOTAL ASSETS............................ $79,131,746 $76,305,327
=========== ===========
LIABILITIES:
Domestic deposits:
Non-interest bearing deposits........... $7,822,365 $7,698,578
Interest bearing deposits............... 61,686,409 59,315,159
----------- -----------
Total deposits........................ 69,508,774 67,013,737
Other borrowed funds...................... 607,806 772,039
Accrued interest and other liabilities.... 422,050 276,539
----------- -----------
Total liabilities..................... 70,538,630 68,062,315
----------- -----------
STOCKHOLDERS' EQUITY:
Preferred stock authorized 1,000,000 shares of
$5 par; None issued nor outstanding.....
Common stock authorized 5,000,000 shares of
$5 par value; 345,654 shares issued and
outstanding (Note 4).................... 1,728,270 1,728,270
Additional paid-in capital................ 1,483,334 1,483,334
Retained earnings......................... 5,430,058 5,137,944
Unrealized holding losses on investment
securities (net of deferred income taxes
of $24,758 and $54,000 in 1995 and 1994,
respectively) (Note 4).................. (48,060) (106,000)
----------- -----------
Total................................. 8,593,602 8,243,548
Less: Treasury stock, 23 and 26 shares,
respectively, at cost.............. 486 536
----------- -----------
Total stockholders' equity............ 8,593,116 8,243,012
----------- -----------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY.. $79,131,746 $76,305,327
=========== ===========
</TABLE>
See Notes to Consolidated Financial Statements
2
<PAGE>
GRANGE NATIONAL BANC CORP. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
<TABLE>
<CAPTION>
THREE MONTHS
ENDED
MARCH 31
----------------------
1995 1994
---------- --------
<S> <C> <C>
Interest Income:
Interest and fees on loans............ $1,142,529 $910,422
Interest and dividends
on investment securities............ 287,817 238,226
Interest on federal funds sold........ 3,930
Interest on deposits in banks......... 66,972 42,296
---------- ---------
Total interest income......... 1,497,318 1,194,874
--------- ---------
Interest Expense:
Interest on deposits.................. 593,192 484,244
Interest on borrowed funds............ 10,168 10,044
---------- ---------
Total interest expense........ 603,360 494,288
---------- ---------
Net interest income............. 893,958 700,586
Provision for loan losses......... 15,000 30,000
---------- ---------
Net interest income after
provision for loan losses..... 878,958 670,586
---------- ---------
Other Income:
Service charges and other income...... 94,091 67,794
---------- ---------
Other Expenses:
Salaries and employee benefits........ 245,924 219,507
Occupancy expense..................... 62,291 36,593
Equipment expense..................... 50,248 48,235
Other operating expense............... 184,472 141,899
---------- ---------
Total other expenses.......... 542,935 446,234
---------- ---------
Income before income taxes.............. 430,114 292,146
Provision for income taxes.............. 138,000 87,000
---------- ---------
Net income.............................. $292,114 $205,146
========== =========
Earnings per share (Note 4)............. $0.82 $0.78
========== =========
Weighted average common shares.......... 354,631 262,308
</TABLE>
See Notes to Consolidated Financial Statements
3
<PAGE>
GRANGE NATIONAL BANC CORP. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (UNAUDITED)
FOR THE THREE MONTHS ENDED MARCH 31, 1995 AND 1994
<TABLE>
<CAPTION>
1995 1994
---------- ----------
<S> <C> <C>
STOCKHOLDERS' EQUITY, January 1.............. $8,243,012 $5,544,147
NET INCOME................................... 292,114 205,146
UNREALIZED HOLDING GAINS AND LOSSES
Unrealized holding gains (losses) on investment
securities (net of deferred income taxes of
$29,242 and $10,905 in 1995 and 1994,
respectively).............................. 57,940 (21,168)
TREASURY STOCK
Reissuance of common stock (3 shares each
in 1994 and 1993).......................... 50 50
---------- ----------
STOCKHOLDERS' EQUITY, March 31............... $8,593,116 $5,728,175
========== ==========
</TABLE>
See Notes to Consolidated Financial Statements
4
<PAGE>
GRANGE NATIONAL BANC CORP. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
FOR THE THREE MONTHS ENDED MARCH 31, 1995 1994
<S> <C> <C>
OPERATING ACTIVITIES:
Net income..................................... $292,114 $205,146
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization................ 36,000 33,400
Provision for loan losses.................... 15,000 30,000
Increase (decrease) in deferred income taxes. 29,242 (4,000)
Changes in operating assets and liabilities:
Increase in accrued interest income and other
assets...................................... (132,574) (58,314)
Increase in accrued interest expense and other
liabilities................................. 116,269 217,304
---------- ----------
NET CASH PROVIDED BY
OPERATING ACTIVITIES......................... 356,051 423,536
---------- ----------
INVESTING ACTIVITIES:
Purchase bank premises and equipment........... (131,748) (109,977)
Decrease (increase) in other real estate....... (45,193) 21
Purchase of securities "available for sale".... (31,300) (2,416,504)
Redemptions of securities "available for sale". 2,225,715 1,450,000
Purchase of securities "held to maturity"...... (1,828,511) (660,300)
Redemptions of securities "held to maturity"... 44,899 685,424
Decrease in mortgage-backed securities......... 45,702 83,670
Decrease (increase) in loans to customers...... (1,661,293) 437,211
Increase in deposits in banks.................. (1,123,299) (198,046)
---------- ----------
NET CASH USED IN
INVESTING ACTIVITIES......................... (2,505,028) (728,501)
---------- ----------
FINANCING ACTIVITIES:
Increase in deposits before interest credited... 1,777,163 738,487
Interest credited to deposits.................. 553,641 211,154
Decrease in treasury stock..................... 50 50
---------- ----------
NET CASH PROVIDED BY
FINANCING ACTIVITIES......................... 2,330,854 949,691
---------- ----------
NET INCREASE IN CASH AND
CASH EQUIVALENTS............................... 181,877 644,726
CASH AND CASH EQUIVALENTS, JANUARY 1............ 1,486,145 4,670,674
---------- ----------
CASH AND CASH EQUIVALENTS, MARCH 31............. $1,668,022 $5,315,400
========== ==========
SUPPLEMENTARY SCHEDULE OF CASH FLOW INFORMATION:
Cash paid during the three months for:
Interest...................................... $106,368 $123,698
Income taxes.................................. $50,000 $19,000
Non-cash investing activities:
Unrealized gains (losses) on securities,
net of tax................................... $57,940 ($21,168)
</TABLE>
See Notes to Consolidated Financial Statements
5
<PAGE>
GRANGE NATIONAL BANC CORP. AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
1. BUSINESS COMBINATION AND PRINCIPLES
OF CONSOLIDATION:
Grange National Banc Corp. (Company) was organized and incorporated under
the laws of the Commonwealth of Pennsylvania on October 2, 1984, for the
purpose of becoming a bank holding company. On April 30, 1985 the Company
acquired the Grange National Bank of Wyoming County (Bank) pursuant to a
plan of reorganization and merger. The Bank became a wholly owned subsidiary
of the Company, and each outstanding share of Bank common stock was
converted into one share of Company common stock. The accompanying
consolidated financial statements include the accounts of the Company and
its wholly owned subsidiary (Bank) with the reorganization accounted for as
a pooling of interests.
2. BASIS OF PRESENTATION:
The accompanying unaudited consolidated financial statements have been
prepared in conformity with the accounting principles and practices
reflected in the annual financial statements, and reflect all adjustments
which are normal and recurring and, in the opinion of management, necessary
for a fair presentation of the results of operations for the interim
periods. The results of operations reported in interim financial statements
are not necessarily indicative of results to be expected for the year.
3. CHANGE IN ACCOUNTING PRINCIPLE:
In May 1993 the Financial Accounting Standards Board issued Statement of
Financial Accounting Standards No. 115 "Accounting for Certain Investments
in Debt and Equity Securities" ("SFAS No. 115"), which the Company adopted
as of January 1, 1994. SFAS No. 115 requires the Company to classify each
debt and equity security in one of three categories: held to maturity,
available for sale or trading. Investments classified as held to maturity
are reflected at amortized cost. Investments classified as either available
for sale or trading securities are reflected at fair market value.
Unrealized gains or losses for trading securities are included in earnings.
Unrealized gains and losses on available for sale securities are excluded
from earnings and reflected, net of income taxes, in a separate component of
stockholders' equity until realized. All equity and U.S. Treasury securities
are classified as "available for sale" and all other securities are
classified as "held to maturity". Upon implementation on January 1, 1994,
fair market value of available for sale securities exceeded amortized cost
by $70,000. At March 31 1995 and 1994, amortized cost exceeded fair market
value by approximately $73,000 and $32,000, respectively.
6
<PAGE>
4. STOCK SPLIT - RETROACTIVE EFFECT ON FINANCIAL STATEMENTS:
In January 1994, the Board of Directors of the Company voted a three-for-one
split of the Company's common stock, to be effected in the form of a stock
distribution, payable to shareholders of record as of April 1, 1994. The
split was approved by the shareholders as part of an amendment to the
Company's articles of incorporation to increase the number of authorized
shares of common stock from 300,000 to 5,000,000 (an additional 1,000,000
shares of preferred stock of $5 par value was also authorized). The
financial statements have been revised to give retroactive effect of the
stock split as if the additional shares had been outstanding for all periods
presented.
STOCK OPTIONS:
In January 1994, the Board adopted an Employee Stock Option Plan in which
common stock options may be granted to all officers and key employees of the
Company. The aggregate number of shares which may be issued upon exercise of
the options under the plan is 20,000. Options are exercisable up to
one-third in the second year after the date of grant, up to two thirds in
the third year after the date of grant and up to 100% in the fourth year
after the date of grant. Options were granted at various times during 1994,
at prices ranging from $24.00 to $26.25 per share
The Board of Directors also adopted a Stock Option Plan for non-employee
Directors which will be available to all non-employee members of the Board
of Directors. The aggregate number of shares which may be issued upon
exercise of the options under the Director's plan is 20,000 shares and are
exercisable in part from time to time beginning one year after the date of
grant and expiring ten years thereafter. Effective April 1, 1994, options to
purchase 1,000 shares of common stock, at $24.00 per share, were
automatically granted to each non-employee Director under this plan expiring
April 1, 2004.
7
<PAGE>
PUBLIC OFFERING
In 1994 the Company engaged in a stock offering in which 83,334 shares of
common stock were offered and sold at $24.00 per share for a total of
$2,000,016. The net proceeds received from the stock offering after the
offering costs of $100,012 was $1,900,004.
PREFERRED STOCK:
The Company authorized 1,000,000 of preferred stock at $5 par value. At
December 31, 1994 and March 31, 1995, no shares were issued nor outstanding.
8
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION:
Net income for the three months ending March 31, 1995 totaled $292,000 which
is a 42% increase from the $205,000 net income reported for the same period
in 1994. Net interest income for the three months ending March 31, 1995
increased by $193,000 to $894,000 compared to $701,000 for the same period
in 1994. This constitutes an increase of 28% over the previous year.
Interest income for this period increased by $302,000 or 25% compared to
1994, and interest expense increased as well by $109,000 or 22% compared to
1994.
The increase in interest income has been principally in loan income, which
increased $232,000 or 25% compared to the same period last year. Interest
income from investment securities increased by $50,000 or 21%. Each of these
earning assets have experienced the effect of rising interest rates and
increased volume. Interest on fed funds sold declined to zero as a result of
the transfer of fed funds balances to the Federal Home Loan Bank. The income
derived from these balances is classified as interest earned on deposits in
banks, which increased by $25,000 or 60% over the same period in 1994.
The increase in interest expense is due to the increase in interest bearing
deposits and the steady increase in interest rates during the third and
fourth quarters of 1994. The average total sources to fund earning assets
increased by $5,721,000, from $67,069,000 in 1994 to $72,797,000 in 1995 and
the average interest rate increased from 2.95% to 3.31%, respectively,
accounting for the $109,000 increase in interest expense.
The increase in deposits in the past several years has provided funds for
investment in securities as well as loans. Loan demand during the first
quarter of 1995 continued to be very strong. Management believes this is due
to the mild weather conditions experienced during the period together with
strong demand for consumer loans and small commercial loans. Loan balances
increased from $46,733,000 at December 31, 1994 to $47,838,000 at March 31,
1995 for an increase of 3.5%. Balances of investment securities, both
available for sale and held to maturity, declined by $399,000 or 2%, and
interest bearing deposits increased by $1,123,000 or 20%. Management is
emphasizing liquidity because it expects loan demand to continue to be
strong for the balance of 1995 due to the opening of a new branch office in
Edwardsville, Pennsylvania on March 1, 1995.
The provision for loan loss during the three months ending March 31, 1995
was $15,000 compared to $30,000 for the same period in 1994. The allowance
for loan loss was $479,000 at both March 31, 1995 and December 31, 1994.
This represents 0.99% and 1.00% of total loans, 96% and 158% of
non-performing loans and 65% and 98% of non-performing assets for March 31,
1995 and December 31, 1994, respectively. Management performs a quarterly
analysis of the Bank's potential loan losses on a "worst case" basis. A loan
review process is performed by an independent loan review officer on a
9
<PAGE>
continuing basis. This information is closely reviewed by the Board of
Directors and used to evaluate the adequacy of the loan loss reserve in
order to provide coverage for identifiable losses, provide for coverage for
unexpected losses, and to keep the size of the reserve in proportion to the
growing size of the loan portfolio.
The following sets forth loans past due 90 days or more on which interest
has continued to be accrued for March 31, 1995 and December 31, 1994.
<TABLE>
<CAPTION>
March 1995 December 1994
(In thousands)
<S> <C> <C>
Real estate mortgages $218 $174
Commercial 35 5
Installment 129 1
------ -----
Total $382 $180
====== =====
</TABLE>
Non-accrual loans decreased from $126,000 at December 31, 1994 to $119,000
at March 31, 1995. Other real estate increased to $232,000 at March 31, 1995
from $187,000 at December 31, 1994. The Bank has received an offer on one of
the four parcels in other real estate and expects to liquidate this parcel
within 30 days. A committee consisting of Board members and management
personnel has been appointed to oversee the orderly liquidation of these
properties. Management believes that the properties are marketable and that
their eventual liquidation will not create any significant loss to the Bank.
Although the overall quality of the loan portfolio of the Bank is good,
management expects future non-performing assets to increase in proportion to
the increase in the size of the loan portfolio.
Investments in securities decreased by $399,000 or 2% from December 31, 1994
to March 31, 1995. The average rate earned on investments in both the
"available for sale" category and "held to maturity" category was 6.02% at
March 31, 1995 compared to 5.10% at March 31, 1994. The Bank adopted SFAS
No. 115, (as noted in the Notes to the Financial Statements), effective
January 1, 1994. Securities classified "available for sale" include all U.S.
Treasuries and all equity securities. The remainder of the Bank's portfolio
is classified as "held to maturity". Management has chosen not to classify
any securities as "trading". The book value of the Bank's investments
classified as "held to maturity" exceeds the market value by $71,000, while
the market value of investments classified as "available for sale" increased
by $87,000 from December 31, 1994 to March 31, 1995. This is reflected as an
increase in the Bank's equity of approximately $60,000, net of deferred tax
effects.
The interest increase is due to previous investments at lower rates maturing
and being replaced by current investments, which produce higher yields.
Rising interest rates during 1994 account for the unrealized loss for the
10
<PAGE>
available for sale securities reflected in the balance sheet. Since January
interest rates have declined slightly and has resulted in a smaller
unrealized loss on the investments. The value of the investment portfolio
will change inversely to changes in interest rates. Management strives to
keep the average maturity of the investments short to minimize any market
value changes.
Management continues to purchase only high quality investments to minimize
credit risk to the value of the Bank's investments. There have been no
adverse credit valuations on any of the investments. Although investment
opportunities exist which will produce higher yields, they generally contain
higher credit or interest rate risk.
Salaries and employee benefits have increased by $26,000 from $220,000 to
$246,000 or 12% due to salary increases and the hiring of new employees for
the Edwardsville office. Occupancy expense increased by $25,000 or 68% due
to rent and utility expenses for the Edwardsville office and increased
depreciation costs related to the other offices. Equipment expense increased
by $2,000 from $48,000 to $50,000 or 4%. F.D.I.C. deposit insurance premiums
have leveled off as the rate did not change for 1995. Under the "risk-based
premium" system instituted in 1993 by the F.D.I.C., the Bank pays the lowest
possible premium rate, but will still pay over $150,000 for deposit
insurance during 1995, unless the premium is lowered in accordance with
existing laws which should take effect in the fourth quarter of 1995.
Management has made an effort to improve the Bank's repricing and liquidity
by performing an interest rate analysis and liquidity analysis on a monthly
basis. These reports are reviewed by management and the Board of Directors
to determine ways to improve the Bank's interest rate sensitivity gap and
meet liquidity needs. The Bank continues to place great emphasis on
adjustable rate loan products, such as variable rate home equity loans and
annually adjustable mortgage loans as well as adjustable rate and short term
investments, in order to minimize interest rate risk.
Since 1991 the Comptroller of the Currency has required all national banks
to meet certain "Risk Based Capital" standards. These standards weight
certain assets based on the risk of the asset, and also includes certain
off-balance sheet items. The table below sets forth the Bank's Tier 1 and
Tier 2 capital, risk adjusted assets (including off-balance sheet items) and
the Bank's risk- based capital ratios under the guidelines, for March 31,
1995 and December 31, 1994.
11
<PAGE>
<TABLE>
<CAPTION>
(In thousands, except ratios) 1995 1994
<S> <C> <C>
Tier I capital:
Shareholders' equity.......................$8,641 $8,349
Tier II capital:
Loan loss reserve.......................... 479 479
------- --------
Total Qualifying Capital.....................$9,120 $8,828
======= ========
Risk-adjusted assets (including
off-balance sheet items)..................$48,288 $45,961
Tier I Capital Ratio (4.00% required)........17.89% 18.17%
Total Capital Ratio (8.00% required).........18.89% 19.21%
</TABLE>
12
<PAGE>
GRANGE NATIONAL BANC CORP. AND SUBSIDIARY
AVERAGE BALANCES, INTEREST INCOME/EXPENSE AND RATES
<TABLE>
<CAPTION>
THREE MONTHS ENDED THREE MONTHS ENDED
MARCH 31, 1995 MARCH 31, 1994
------------------------- -------------------------
(1) Interest Average (1) Interest Average
Average Income/ Interest Average Income/ Interest
(Dollars in thousands) Balance Expense Rate Balance Expense Rate
------- -------- -------- ------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
INTEREST EARNING ASSETS:
Loans:
Mortgages...................... $28,935 $677 9.36% $25,636 $558 8.71%
Installment.................... 3,547 100 11.28 3,013 82 10.89
Commercial..................... 15,364 372 9.68 12,406 277 8.93
------- -------- ------- --------
Total loans.................. 47,846 1,149 9.61 41,055 917 8.93
------- -------- ------- --------
Securities available for sale:
U.S. Treasury securities....... 7,561 105 5.55 9,313 116 4.98
Other securities............... 263 239
------- -------- ------- --------
Total available for sale... 7,824 105 5.37 9,552 116 4.86
------- -------- ------- --------
Securities held to maturity:
U.S. government agencies....... 8,308 135 6.50 5,265 66 5.01
Municipal bonds................ 2,941 43 5.85 3,834 48 5.01
Other securities............... 1,139 21 7.37 1,354 25 7.39
------- -------- ------- --------
Total held to maturity....... 12,388 199 6.43 10,453 139 5.32
------- -------- ------- --------
Federal funds sold.............. 3,954 24 2.43
Deposits in banks............... 4,739 67 5.66 2,055 23 4.48
------- -------- ------- --------
TOTAL...................... $72,797 1,520 8.35 $67,069 1,219 7.27
======= -------- ======= --------
INTEREST BEARING LIABILITIES:
Deposits:
NOW and super-NOW.............. $7,109 36 2.03 $6,523 32 1.96
Savings and money market....... 20,965 151 2.88 20,537 164 3.19
Certificates of deposit........ 32,053 403 5.03 29,686 286 3.85
Other time deposits............ 200 3 6.00 200 2 4.00
------- -------- ------- --------
Total deposits............... 60,327 593 3.93 56,946 484 3.40
Other borrowed funds............ 791 10 5.06 876 10 4.57
------- -------- ------- --------
TOTAL...................... 61,118 603 3.95 57,822 494 3.42
Non-interest bearing
funds, net (2).................. 11,679 9,247
------- -------- ------- --------
TOTAL SOURCES TO FUND
EARNING ASSETS.................. $72,797 603 3.31 $67,069 494 2.95
======= -------- ======= --------
NET INTEREST/YIELD........................ $917 5.04% $725 4.32%
======= =======
</TABLE>
(1) Average balances are daily averages.
(2) Demand deposits, stockholders's equity and other non-interest bearing
liabilities less non-interest earning assets.
Non-accrual loans are reflected in the loan balances, but contributing no
interest income.
NOTE - Tax exempt interest income has been converted to a tax equivalent basis
at the U.S. federal income tax rate of 34%.
See Notes to Consolidated Financial Statements
13
<PAGE>
PART II. OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(ii) Statement re: computation of earnings per share:
Earnings per share are calculated on the basis of the weighted average
number of shares outstanding. The number of shares used to calculate
earnings per share for the periods presented are as indicated in each
period.
During the current fiscal quarter, there have been no events of a
nature required to be filed on Form 8-K.
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.
GRANGE NATIONAL BANC CORP.
--------------------------
(Registrant)
Date May 10, 1995 /s/ Thomas A. McCullough
------------ -------------------------
Thomas A. McCullough
President
Chief Executive Officer
Chief Financial Officer
Date May 10, 1995 /s/ Philip O. Farr
------------ -------------------------
Philip O. Farr
Chief Accounting Officer
14
