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, 1996________________________
[ ] 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
State the number of shares outstanding of each of the issuer's classes of
common equity, as of the latest practical date: 348,774
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
Page
----
Unaudited Financial Statements:
Consolidated Balance Sheets as of March 31, 1996
and December 31, 1995............................. 2
Consolidated Statements of Income For the Three
Months Ended March 31, 1996....................... 3
Consolidated Statements of Changes in Stockholders'
Equity For the Three Months Ended March 31, 1996
and 1995.......................................... 4
Consolidated Statements of Cash Flows For the
Three Months ended March 31, 1996 and 1995........ 5
Notes to Consolidated Financial Statements........ 6 - 7
ITEM 2. Management's Discussion and Analysis of
Financial Condition........................... 8 - 10
Results of Operations............................. 11
PART II. OTHER INFORMATION:
ITEM 6. Exhibits and Reports on Form 8-K............. 12
<PAGE>
GRANGE NATIONAL BANK CORP. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS, MARCH 31, 1996 AND DECEMBER 31, 1995
<TABLE>
<CAPTION>
1996 1995
(UNAUDITED) (AUDITED)
------------ ----------
<S> <C> <C>
ASSETS:
Cash and due from banks................................................................ $1,777,486 $ 1,793,476
Investment securities, held to maturity (fair
value 1996, $22,868,000; 1995, $21,355,000) ......................................... 23,231,695 21,155,479
Investment securities, available for sale (Note 3)..................................... 11,555,053 10,511,079
Interest bearing deposits.............................................................. 5,763,857 2,713,768
Loans, net of unearned interest........................................................ 51,919,346 52,537,822
Less: allowance for loan losses....................................................... 545,049 532,325
------------ -----------
Loans - net..................................................................... 51,374,297 52,005,497
Bank premises and equipment - net...................................................... 2,265,572 2,236,370
Other real estate...................................................................... 15,869 69,618
Accrued interest and other assets...................................................... 1,536,970 1,136,680
------------ -----------
TOTAL ASSETS......................................................................... $97,520,799 $ 91,621,967
========== ===========
LIABILITIES:
Domestic deposits:
Non-interest bearing deposits........................................................ $10,649,620 $ 8,860,513
Interest bearing deposits............................................................ 75,772,764 71,005,086
------------ -----------
Total deposits..................................................................... 86,422,384 79,865,599
Other borrowed funds................................................................... 868,749 1,712,342
Accrued interest and other liabilities................................................. 415,013 521,759
------------ -----------
Total liabilities.................................................................. 87,706,146 82,099,700
------------ -----------
STOCKHOLDERS' EQUITY:
Preferred stock authorized 1,000,000 shares of $5 par;
None issued
Common stock authorized 5,000,000 shares of
$5 par value; 348,774 shares issued and
outstanding (Note 4)................................................................. 1,743,870 1,743,870
Additional paid-in capital............................................................. 1,559,336 1,559,336
Retained earnings...................................................................... 6,524,795 6,154,547
Unrealized holding gains (losses) on investment securities
(net of deferred income taxes of ($7,242) and
$33,000 in 1996 and 1995, respectively) (Note 4)..................................... (12,912) 65,000
------------ -----------
Total ............................................................................. 9,815,089 9,522,753
Treasury stock, 20 and 23 shares,
respectively, at cost ............................................................... (436) (486)
------------ -----------
Total stockholders' equity......................................................... 9,814,653 9,522,267
------------ -----------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY .............................................. $ 97,520,799 $ 91,621,967
=========== ===========
</TABLE>
See Notes to Consolidated Financial Statements
3
GRANGE NATIONAL BANC CORP. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
<TABLE>
<CAPTION>
Three Months
Ended
March 31
1996 1995
---- ----
<S> <C> <C>
Interest Income:
Interest and fees on loans................................................... $1,273,170 $1,142,529
Interest and dividends
on investment securities................................................... 495,096 287,817
Interest on deposits in banks................................................ 38,057 66,972
---------- ---------
Total interest income................................................ 1,806,323 1,497,318
---------- ---------
Interest Expense:
Interest on deposits......................................................... 779,472 593,192
Interest on borrowed funds .................................................. 10,290 10,168
---------- ---------
Total interest expense............................................... 789,762 603,360
---------- ---------
Net interest income.................................................... 1,016,561 893,958
Provision for loan losses ............................................... 13,000 15,000
---------- ---------
Net interest income after
provision for loan losses............................................ 1,003,561 878,958
---------- ---------
Other Income:
Service charges and other income ............................................ 118,223 94,091
Gain (loss) on sale of other real estate..................................... (22,801)
---------- ---------
Total other income................................................... 95,422 94,091
---------- ---------
Other Expenses:
Salaries and employee benefits .............................................. 311,759 245,924
Occupancy expense ........................................................... 48,772 62,291
Equipment expense............................................................ 54,930 50,248
Other operating expense ..................................................... 148,274 184,472
---------- ---------
Total other expenses................................................. 563,735 542,935
---------- ---------
Income before income taxes .................................................... 535,248 430,114
Provision for income taxes .................................................... 165,000 138,000
---------- ---------
Net income..................................................................... $370,248 $ 292,114
========== =========
Earnings per share (Note 4).................................................... $1.06 $ 0.82
========== =========
Weighted average common shares ................................................ 348,754 345,631
</TABLE>
See Notes to Consolidated Financial Statements
<PAGE>
GRANGE NATIONAL BANC CORP. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (UNAUDITED)
FOR THE THREE MONTHS ENDED MARCH 31, 1996 AND 1995
<TABLE>
<CAPTION>
1996 1995
---- ----
<S> <C> <C>
STOCKHOLDERS' EQUITY, January 1.................................. 9,522,267 8,243,012
NET INCOME....................................................... 370,248 292,114
UNREALIZED HOLDING GAINS AND LOSSES
Unrealized holding gains (losses) on investment
securities (net of deferred income taxes of ($7,242)
and $33,000 in 1996 and 1995, respectively).................... (77,912) 57,940
TREASURY STOCK
Reissuance of common stock (3 shares each
in 1996 and 1995) ............................................. 50 50
---------- ----------
STOCKHOLDERS' EQUITY, March 31................................... $9,814,653 $8,593,116
========== ==========
</TABLE>
See Notes to Consolidated Financial Statements
<PAGE>
GRANGE NATIONAL BANC CORP. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS (AUDITED)
<TABLE>
<CAPTION>
FOR THE THREE MONTHS ENDED MARCH 31, 1996 1995
---- ----
<S> <C> <C>
OPERATING ACTIVITIES:
Net income..................................................................... $376,463 $292,114
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization................................................ 47,758 36,000
Provision for loan losses.................................................... 13,000 15,000
Increase (decrease) in deferred income taxes................................. (40,242) 29,242
Changes in operating assets and liabilities:
Increase in accrued interest income and other assets.......................... (230,036) (132,574)
Increase (decrease) in accrued interest expense and other liabilities......... (109,631) 116,269
---------- ----------
NET CASH PROVIDED BY
OPERATING ACTIVITIES......................................................... 57,312 356,051
---------- ----------
INVESTING ACTIVITIES:
Purchase bank premises and equipment........................................... (76,960) (131,748)
Decrease (increase) in other real estate....................................... 53,749 (45,193)
Purchase of securities "available for sale"................................... (2,561,554) (31,300)
Redemptions of securities "available for sale"................................. 1,472,580 2,225,715
Purchase of securities "held to maturity"..................................... (5,517,223) (1,828,511)
Redemptions of securities "held to maturity"................................... 3,897,330 44,899
Decrease (increase) in mortgage-backed securities............................. (456,323) 45,702
Decrease (increase) in loans to customers...................................... 622,200 (1,661,293)
Decrease (increase) in deposits in banks....................................... (3,050,089) (1,123,299)
Premium on deposits............................................................ (170,254)
---------- ----------
NET CASH USED IN
INVESTING ACTIVITIES......................................................... (5,786,544) (2,505,028)
---------- ----------
FINANCING ACTIVITIES:
Increase in deposits before interest credited.................................. 5,975,186 1,941,396
Increase (decrease) in borrowed funds......................................... (843,593) (164,233)
Interest credited to deposits.................................................. 581,599 553,641
Decrease in treasury stock..................................................... 50 50
---------- ----------
NET CASH PROVIDED BY
FINANCING ACTIVITIES......................................................... 5,713,242 2,330,854
---------- ----------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS............................................................... (15,990) 181,877
CASH AND CASH EQUIVALENTS, January 1............................................ 1,793,476 1,486,145
---------- ----------
CASH AND CASH EQUIVALENTS, March 31............................................. $1,777,486 $1,668,022
========== ==========
SUPPLEMENTARY SCHEDULE OF CASH FLOW INFORMATION:
Cash paid during the year for:
Interest...................................................................... $233,47 $106,368
Income taxes.................................................................. $174,000 $50,000
Non-cash investing activities:
Unrealized gains (losses) on securities, net of tax........................... ($77,912) $57,940
</TABLE>
See Notes to Consolidated Financial Statements
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
<PAGE>
amortized cost by $70,000. At March 31, 1996 and 1995, amortized cost
exceeded fair market value by approximately $20,000 and $73,000,
respectively.
4. 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, with options expiring at the end of ten years 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.
The Board of Directors adopted an additional Stock Option Plan (the "Plan")
in November 1995 covering the employees and directors. The Plan authorizes
the grant of options to purchase not more than 55,000 shares of Common
Stock under the Plan. Options granted under the Plan are intended to be
either incentive stock options or nonstatutory stock options. As of April
30, 1996 options for 50,160 shares of Common Stock having an exercise price
of $32.50 were outstanding and 4,840 shares were available for future
option grants under the Plan. Of the 50,160 shares of Common Stock
outstanding for options, 36,320 shares of Common Stock were issued as
incentive stock options. The remaining shares outstanding for options were
granted to each non-employee director equally as nonstatutory stock
options.
PREFERRED STOCK:
The Company authorized 1,000,000 of preferred stock at $5 par value.
At December 31, 1995 and March 31, 1996, no shares were issued nor
outstanding.
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION:
Net income for the three months ending March 31, 1996 totaled $370,000 which is
a 27% increase from the $292,000 net income reported for the same period in
1995. Net interest income for the three months ending March 31, 1996 increased
by $123,000 to $1,017,000 compared to $894,000 for the same period in 1995. This
constitutes an increase of 14% over the previous year. Interest income for this
period increased by $309,000 or 21% compared to 1995, and interest expense
increased as well by $187,000 or 31% compared to 1995.
The increase in interest income has been principally from investment securities
which increased by $207,000 or 72% compared to the same period last year.
Interest income from loans increased by $131,000 or 11%. Investment securities
have experienced volatile interest rates without a clear direction, while loan
rates have been subject to a slight downward pressure during the first quarter
of 1996. Deposits in banks have been invested in securities to take advantage of
opportunities for higher rates. As a result, interest earned on deposits in
banks has declined from $67,000 during this period in 1995, to $38,000 for 1996.
The increase in interest expense is due to the increase in interest bearing
deposits and slightly higher interest rates during the first quarter of 1996 as
compared to the first quarter of 1995. The average total sources to fund earning
assets increased by $13,688,000, from $72,797 in 1995 to $86,485,000 in 1996,
and the average interest rate increased from 3.95% to 4.35%, respectively,
accounting for the $187,000 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 1996 was very weak and net loans actually declined slightly by $631,000 from
$52,005,000 at December 31, 1995, to $51,374,000 at March 31, 1996. Management
believes the abnormally harsh winter, with its record snowfall amounts is
responsible for the lack of loan and economic activity. Balances of investment
securities, both available for sale and held to maturity, increased $3,120,000
or 10% and interest bearing deposits increased $3,050,000 or 112% for the same
period.
The provision for loan loss during the three months ending March 31, 1996 was
$13,000 compared to $15,000 for the same period in 1995. The allowance for loan
loss was $545,000 and $532,000 at March 31, 1996 and December 31, 1995,
respectively. This represents 1.06% and 1.02% of total loans, 118% and 141% of
non-performing loans and 114% and 119% of non-performing assets from March 31,
1996 and December 31, 1995, 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
continuing basis. This
<PAGE>
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 reserves 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, 1996 and December 31, 1995.
March 1996 December 1995
(in thousands)
Real estate mortgages $191 $194
Commercial 10 27
Installment 4
---- ----
Total $205 $221
==== ====
Non-accrual loans increased from $156,000 at December 31, 1995 to $256,000 at
March 31, 1996. Other real estate decreased to $16,000 at March 31, 1996 from
$70,000 at December 31, 1995. The Bank has one parcel of other real estate left
and anticipates liquidating it during the second quarter of 1996. Management
also expects to acquire a property through foreclosure during the second
quarter, which should be approximately $70,000. Overall quality of the loan
portfolio remains very good, and management expects non-performing assets to
remain at substantially the same levels as a proportion of loans.
Investments in securities and deposits in banks increased by $6,170,000 or 18%
from December 31, 1995 to March 31, 1996. The average rate earned on available
for sale, held to maturity and deposits in banks all increased from 5.37%, 6.43%
and 5.66%, to 5.49%, 6.99% and 5.97%, respectively. The book value of the Bank's
investments classified as held to maturity exceeded the fair value by $365,000,
while the fair value of investments classified as available for sale decreased
by $118,000 from December 31, 1995 to March 31, 1996. This is reflected as a
decrease in the Bank's equity of approximately $13,000 net of deferred tax
effects.
Higher interest rates at March 31, 1996 account for the unrealized loss on the
available for sale securities reflected in the balance sheet. Rates are expected
to change from day to day with only a slight upward trend. This will have only a
slightly negative impact on the fair value of the securities available for sale
as the value of the securities will change inversely to changes in interest
rates. Management strives to keep the average maturity of the investments short
to minimize changes in fair value.
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
<PAGE>
produce higher yields, they generally contain higher credit or interest
rate risk.
Salaries and employee benefits have increased by $66,000 or 27% from $246,000 to
$312,000 due to salary increases and salary costs associated with the addition
of the Little Meadows office. Occupancy and equipment expenses have not changed
significantly, but other operating expenses decreased $36,000 due to the
reduction of the F.D.I.C. premium by $36,000.
Management performs an interest rate and liquidity analysis on a monthly basis
to monitor the Bank's interest rate sensitivity gap and liquidity needs. These
reports are reviewed by the Board of Directors and used to formulate ways to
improve the Bank's interest rate sensitivity gap. 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, 1996 and December
31, 1995.
(In thousands, except ratios) 1996 1995
---- ----
Tier I capital:
Shareholders' equity................. $9,815 $9,194
Tier II capital:
Loan loss reserve.................... 545 532
------ ------
Total Qualifying Capital............... $10,360 $9,726
====== ======
Risk-adjusted assets (including
off-balance sheet items)............. $54,766 $49,771
Tier I Capital Ratio (4.00% required).. 17.92% 18.47%
Total Capital Ratio (8.00% required)... 18.92% 19.54%
<PAGE>
GRANGE NATIONAL BANC CORP. AND SUBSIDIARY
AVERAGE BALANCES, INTEREST INCOME/EXPENSE AND RATES
<TABLE>
<CAPTION>
THREE MONTHS ENDED THREE MONTHS ENDED
MARCH 31, 1996 MARCH 31, 1995
---------------------------------------- -----------------------------------------
(1) Interest Average (1) Interest Average
Average Income/ Interest Average Income/ Interest
(Dollars in thousands) Balance Expense Rate Balance Expense Rate
- ---------------------- ------- -------- -------- ------- -------- --------
INTEREST EARNING ASSETS
<S> <C> <C> <C> <C> <C> <C>
Loans:
Mortgages ................... $30,751 $ 719 9.35% $28,935 $ 677 9.36%
Installment ................. 4,784 116 9.70 3,547 100 11.28
Commercial .................. 16,510 442 10.71 15,364 372 9.68
------- ------- ------- -------
Total loans ............... 52,045 1,277 9.81 47,846 1,149 9.61
------- ------- ------- -------
Securities available for sale:
U.S. Treasury securities .... 10,354 142 5.49 7,561 105 5.55
Other securities ............ 357 5 5.60 263
------- ------- ------- -------
Total available for sale... 10,711 147 5.49 7,824 105 5.37
------- ------- ------- -------
Securities held to maturity:
U.S. government agencies .... 16,371 289 7.06 8,308 135 6.50
Municipal bonds ............. 4,016 65 6.47 2,941 43 5.85
Other securities ............ 795 16 8.05 1,139 21 7.37
------- ------- ------- -------
Total held to maturity .... 21,182 370 6.99 12,388 199 6.43
------- ------- ------- -------
Deposits in banks ............ 2,547 38 5.97 4,739 67 5.66
TOTAL ................... $86,485 1,832 8.47 $72,797 1,520 8.35
======= ------- ======= -------
INTEREST BEARING LIABILITIES:
Deposits:
NOW and super-NOW ........... $ 8,090 40 1.98 $ 7,109 36 2.03
Savings and money market .... 22,142 152 2.75 20,965 151 2.88
Certificates of deposit ..... 41,426 585 5.65 32,053 403 5.03
Other time deposits ......... 200 3 6.00 200 3 6.00
------- ------- ------- -------
Total deposits ............ 71,858 780 4.34 60,327 593 3.93
Other borrowed funds ......... 797 10 5.02 791 10 5.06
------- ------- ------- -------
TOTAL ................... 72,655 790 4.35 61,118 603 3.95
Non-interest bearing
funds, net (2) ............... 13,830 11,679
------- ------- ------- -------
TOTAL SOURCES TO FUND
EARNING ASSETS ................ $86,485 790 3.65 $72,797 603 3.31
======= ------- ======= ------- ----
NET INTEREST/YIELD ............ $1,042 4.82% $ 917 5.04%
======= =======
</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
12
<PAGE>
PART II. OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
Exhibit 27 - Financial Data Schedule
(b) 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 14, 1996_____ _/s/ Thomas A. McCullough ____
Thomas A. McCullough
President
Chief Executive Officer
Chief Financial Officer
Date_May 14, 1996_____ _/s/ Philip O. Farr___________
Philip O. Farr
Chief Accounting Officer
<TABLE> <S> <C>
<ARTICLE> 9
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM OUR MARCH
31, 1996 10-QSB AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL
STATEMENTS.
</LEGEND>
<MULTIPLIER> 1
<CURRENCY> U.S.
<EXCHANGE-RATE> 1
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> MAR-31-1996
<CASH> 1,777
<INT-BEARING-DEPOSITS> 5,764
<FED-FUNDS-SOLD> 0
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 11,555
<INVESTMENTS-CARRYING> 23,232
<INVESTMENTS-MARKET> 22,868
<LOANS> 51,919
<ALLOWANCE> 545
<TOTAL-ASSETS> 97,521
<DEPOSITS> 86,422
<SHORT-TERM> 494
<LIABILITIES-OTHER> 415
<LONG-TERM> 375
0
0
<COMMON> 3,303
<OTHER-SE> 6,519
<TOTAL-LIABILITIES-AND-EQUITY> 97,521
<INTEREST-LOAN> 1,273
<INTEREST-INVEST> 495
<INTEREST-OTHER> 38
<INTEREST-TOTAL> 1,806
<INTEREST-DEPOSIT> 779
<INTEREST-EXPENSE> 790
<INTEREST-INCOME-NET> 1,017
<LOAN-LOSSES> 13
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 564
<INCOME-PRETAX> 535
<INCOME-PRE-EXTRAORDINARY> 370
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 370
<EPS-PRIMARY> 1.06
<EPS-DILUTED> 1.06
<YIELD-ACTUAL> 4.82
<LOANS-NON> 256
<LOANS-PAST> 205
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 532
<CHARGE-OFFS> 4
<RECOVERIES> 4
<ALLOWANCE-CLOSE> 545
<ALLOWANCE-DOMESTIC> 545
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
