<PAGE>
U.S. Securities and Exchange Commission
Washington, D.C. 20549
Form 10-QSB
(Mark One)
[ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 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 0-14294
Greater Community Bancorp
(Exact name of small business issuer as specified in its charter)
NEW JERSEY 22-2545165
(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification No.)
55 Union Boulevard, Totowa, New Jersey 07512
(Address of principal executive offices)
(201) 942-1111
(Issuer's telephone number)
Check whether the issuer (1) filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act during the past 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
State the number of shares outstanding of each of the issuer's classes
of common equity, as of the latest practicable date: Common stock $1.00
par value - 1,883,023 shares at August 10, 1996.
Transition Small Business Disclosure Format (check one);
Yes No X
<PAGE>
GREATER COMMUNITY BANCORP AND SUBSIDIARIES
INDEX
PAGE
PART I - FINANCIAL INFORMATION
Item 1 - Financial Statements
Condensed Consolidated Statements of Condition
June 30, 1996 (unaudited) and December 31, 1995 . 3
Condensed Consolidated Statements of Income
Three and Six months ended
June 30, 1996 and 1995 (unaudited). . . . . . . . .4
Condensed Consolidated Statements of Cash Flows
Six months ended June 30, 1996 and 1995 (unaudited)5
Notes to Consolidated Financial Statements(unaudited).6
Item 2 - Management's Discussion and Analysis of Financial
Condition and Results of Operations . . . . . .7
PART II - OTHER INFORMATION
Items 1 through 6 . . . . . . . . . . . . . . . . . . 17
Signatures . . . . . . . . . . . . . . . . . . . . . . . 18
<PAGE>
PART 1 - FINANCIAL INFORMATION
Item 1- Financial Statements
GREATER COMMUNITY BANCORP AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CONDITION
(in thousands, except share data)
June 30, December 31,
1996 1995
Unaudited
ASSETS
CASH AND DUE FROM BANKS
Non-interest-bearing $ 15,042 $ 11,471
FEDERAL FUNDS SOLD 3,267 17,575
Total cash and cash equivalents 18,309 29,046
DUE FROM BANKS - Interest-bearing 1,964 1,148
SECURITIES:
INVESTMENT SECURITIES-Available-for-sale 50,202 47,835
INVESTMENT SECURITIES-Held-to-maturity 39,798 36,151
90,000 83,986
LOANS 138,455 131,439
Less - Allowance for possible loan losses 2,372 2,332
136,083 129,107
PREMISES AND EQUIPMENT, net 2,998 3,082
OTHER REAL ESTATE OWNED 2,303 2,070
ACCRUED INTEREST RECEIVABLE 2,105 1,977
INTANGIBLE AND OTHER ASSETS 2,614 2,629
Total assets $256,376 $253,045
LIABILITIES AND SHAREHOLDERS' EQUITY
DEPOSITS:
Demand
Non-interest-bearing 50,687 $46,332
Interest-bearing 55,051 59,141
Savings 27,040 26,030
Time 86,425 91,263
Total deposits 219,203 222,766
ACCRUED INTEREST AND OTHER LIABILITIES 2,875 2,952
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE 9,461 2,756
REDEEMABLE SUBORDINATED DEBENTURES 4,983 4,976
Total Liabilities 236,522 233,450
SHAREHOLDERS' EQUITY
Preferred stock, without par value:
1,000,000 shares authorized, none outstanding _ _
Common Stock, par value $1 per share:
10,000,000 shares authorized, 1,883,023
and 1,709,451 shares outstanding 1,883 1,709
Additional paid-in capital 17,777 15,231
Retained earnings 159 2,102
Unrealized holding gain on
securities available-for-sale 35 553
Total shareholders' equity 19,854 19,595
Total liabilities and
shareholders' equity $256,376 $253,045
(See notes to Condensed Consolidated Financial statements)
<PAGE>
GREATER COMMUNITY BANCORP AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share data)
(Unaudited)
Three Months Six Months
Ended June 30, Ended June 30,
1996 1995 1996 1995
INTEREST INCOME
Interest on loans, including fees $3,139 $3,109 $6,165 $5,508
Interest on securities 1,363 1,247 2,716 2,119
Interest on Federal Funds
sold and deposits with banks 108 141 249 172
Total interest income 4,610 4,497 9,130 7,799
INTEREST EXPENSE
Interest on deposits 1,558 1,579 3,173 2,568
Interest on borrowings 190 159 342 316
Total interest expense 1,748 1,738 3,515 2,884
Net interest income 2,862 2,759 5,615 4,915
PROVISION FOR POSSIBLE LOAN LOSSES 90 96 180 161
Net interest income after
provision for possible loan losses 2,772 2,663 5,435 4,754
OTHER INCOME 248 597 994 879
3,020 3,260 6,429 5,633
OTHER EXPENSES
Salaries and employee benefits 1,030 930 2,130 1,661
Occupancy and equipment 477 328 1,007 580
Amortization of intangible
assets and organizational costs 28 54 58 82
Other operating expenses 669 1,022 1,659 1,771
Total other expenses 2,204 2,334 4,854 4,094
Income before income taxes 816 926 1,575 1,539
PROVISION FOR INCOME TAXES 294 293 571 517
Net Income $522 $633 $1,004 $1,022
WEIGHTED AVERAGE SHARES OUTSTANDING 1,882 1,853 1,881 1,767
NET INCOME PER SHARE * $0.28 $0.34 $0.53 $0.58
* In 1996, EPS includes the dilutive effect of stock purchase contracts and
stock options which were either anti-dilutive or non-significant in the
prior year.
(See notes to Condensed Consolidated Financial Statements)
<PAGE>
GREATER COMMUNITY BANCORP AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(Unaudited)
Six Months Ended
June 30,
1996 1995
CASH FLOWS FROM OPERATING ACTIVITIES
Net income $ 1,004 $ 1,022
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization 559 273
Accretion of discount on securities, net (71) (94)
Realization of discount on investment securities (49) -
Gain on sale of securities, net - 141
Provision for possible loan losses 180 161
(Increase) decrease in accrued interest receivable (128) 114
Increase in other assets (218) (169)
Increase in accrued interest and other liabilities (70) 512
Net cash provided by operating activities 1,207 1,960
CASH FLOWS FROM INVESTING ACTIVITIES
Available-for-sale securities -
Purchases (8,409) (8,161)
Sales or maturities 6,162 5,234
Held-to-maturity securities -
Purchases (13,771) (7,194)
Maturities 10,124 5,602
Net decrease in interest-bearing
deposits with banks (816) 1,225
Net increase in loans (6,836) (6,667)
Purchase of premises and equipment (586) (680)
Proceeds from sale of other real estate owned - 365
Net cash used in investing activities (14,132) (10,276)
CASH FLOWS FROM FINANCING ACTIVITIES
Net (decrease) increase in deposit accounts (3,563) 12,822
Increase in securities sold under the agreements
to repurchase and federal funds purchased 6,705 613
Dividends paid (988) (202)
Proceeds from exercise of stock options 29 -
Cash acquired through purchase transaction - 4,045
Other, net 5 -
Net cash provided by financing activities 2,188 17,278
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (10,737) 8,962
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 29,046 8,052
CASH AND CASH EQUIVALENTS, END OF PERIOD $18,309 $17,014
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash paid during period for:
Interest $3,380 $2,409
Income taxes 520 658
Loans reclassified from other real estate to loans - 359
Common stock issued in purchase transaction - 1,802
(See notes to Condensed Consolidated Financial Statements)
<PAGE>
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
In the opinion of management, these unaudited financial
statements contain all disclosures which are necessary to
present fairly the Corporation's consolidated financial
position at June 30, 1996 and December 31, 1995 and the
consolidated results of operations and cash flows for three and
six months ended June 30, 1996 and 1995. The financial
statements include all adjustments (consisting only of normal
recurring adjustments) which in the opinion of management are
necessary in order to present fairly the financial position and
results of operations for the interim periods. Certain
information and footnote disclosures normally included in
financial statements under generally accepted accounting
principles have been condensed or omitted pursuant to the
Securities and Exchange Commission rules and regulations.
These financial statements should be read in conjunction with
the annual financial statements and notes thereto included in
Form 10-KSB for the fiscal year ended December 31, 1995.
ACQUISITION
Results of operations include the amounts of Bergen Commercial
Bank (BCB) which the Corporation acquired effective December
31, 1995, on a pooling of interest basis, through an exchange
of stock in which the Corporation issued 692,228 shares
(adjusted for 1996 stock dividend - see "Dividend").
Dividend
During June 1996, the Corporation's Board of Directors declared
a 10% stock dividend followed by a cash dividend of 7 cents
($.07) per share, both of which are payable on July 31, 1996 to
shareholders of record July 15, 1996. As a result of the
declaration of the stock dividend, the number of the
Corporation's outstanding shares as of June 30, 1996 increased
to 1,883,023. The financial information in this report has
been adjusted to reflect the dividends as of June 30, 1996.
<PAGE>
GREATER COMMUNITY BANCORP AND SUBSIDIARIES
PART I - FINANCIAL INFORMATION
ITEM 2 - Management's Discussion and Analysis of Financial
Condition and Results of Operations
The following discussion and analysis of the Corporation's
consolidated financial condition as of June 30, 1996 and the
results of operations for the three- and six-month periods
ended June 30, 1996 and 1995 should be read in conjunction with
the consolidated financial statements, including notes thereto,
included in the Corporation's latest annual report on Form 10-KSB for
the fiscal year ended December 31, 1995, and the other
information herein. The consolidated statement of condition as
of June 30, 1996 and the statements of operations and cash
flows for the three and six months ended June 30, 1996 and 1995
are unaudited but include, in the opinion of the management,
all adjustments considered necessary for a fair presentation of
such data. The term "Corporation" as used herein refers to
Great Falls Bancorp and subsidiaries and the term "Subsidiary
Banks" as used herein refers to Great Falls Bank and Bergen
Commercial Bank. Data is presented for both the Corporation
and the Subsidiary Banks unless otherwise noted. All dollar
figures, except for per share data, are set forth in thousands.
A. Financial Condition: June 30, 1996 and December 31, 1995
As of June 30, 1996, the Corporation's total assets were
$256,376 an increase of $3,331 or 1.3% compared to the amount
reported at December 31, 1995. Cash and due from banks
increased by $4,387 or 34.8% whereas federal funds sold
decreased by $14,308 or 81.4%. The majority of the decrease in
federal funds sold was offset by increases in both investment
securities and loans.
Investment Securities
Investment Securities totaled $90,000 at June 30, 1996, an
increase of $6,014 or 7.2% compared to the amount reported at
December 31, 1995. Management reviews the investment portfolio
continually to achieve maximum yields without having to
sacrifice the high quality of the investments. Of the total,
51.6% of the investments are in U.S. Government obligations,
18.7% in U.S. Government agency obligations, 23.4% in mortgage
backed securities and the balance in municipal and other
securities.
<PAGE>
At June 30, 1996, based on the fair market value of its
available-for-sale portfolio, the Corporation recorded the
difference between the unamortized cost and the fair market
value as an unrealized gain in the amount of $35, net of taxes,
as a component of shareholders' equity. This was a decrease of
$518 from the $553 amount recorded at December 31, 1995.
Loan Portfolio
The Corporation's loan portfolio net of allowance for possible
loan losses at June 30, 1996 totaled $136,083, an increase of
$6,976 (5.4%) compared to the amount reported at December 31,
1995. The increase in loans is primarily due to increased loan
demand.
Other Real Estate Owned
As of June 30, 1996, other real estate totaled $2,303, an
increase of $233 (11.3%) when compared to the amount reported
at December 31, 1995.
Deposits
Total deposits at June 30, 1996 were $219,203, a decrease of
$3,563 or 1.6% relative to the amount reported at December 31,
1995. Within the components of total deposits, non-interest
bearing demand deposits and savings deposits increased by
$4,355 or 9.4% and $1,010 or 3.9%, respectively, while
interest-bearing demand deposits and time deposits decreased by
$4,090 or 6.9% and $4,837 or 5.3%, respectively. The decrease
in time deposits is primarily due to the runoff of deposits at
maturity.
Liquidity
The Corporation maintains a liquidity position which it
considers adequate to provide funds to meet loan demand or the
possible outflow of deposits. It actively manages its liquidity
position under the direction of the Subsidiary Banks' Asset and
Liability Management Committees. At June 30, 1996, sources of
liquidity include $15,042 in cash and due from banks, $3,267 in
federal funds sold and securities available-for-sale of
$50,202.
<PAGE>
Capital Adequacy and Regulatory Matters
The Corporation is subject to regulation by the Board of
Governors of the Federal Reserve System (Federal Reserve
Board). The Subsidiary Banks are subject to regulation by both
the Federal Deposit Insurance Corporation (FDIC) and the New
Jersey Department of Banking (Department). Such regulators
have promulgated regulations which require the Corporation and
the Subsidiary Banks to maintain certain capital ratios. The
following table sets forth selected regulatory capital ratios
for the Corporation and the Subsidiary Banks and the required
regulatory ratios at June 30, 1996:
Greater Great Bergen
Community Falls Commercial
Bancorp Bank Bank Required
Tier I leverage ratio 7.63% 6.72% 9.38% 3%
Tier I risk-based capital ratio 11.62% 11.75% 12.59% 4%
Tier I and Tier II risk-based
capital ratio 15.98% 13.01% 13.63% 8%
<PAGE>
Asset Quality
The Corporation seeks to manage credit risk through
diversification of its loan portfolio and the application of
policies and procedures designed to foster sound underwriting
and credit monitoring policies. The senior lending officer is
charged with monitoring asset quality, establishing credit
policies and procedures and seeking consistent applications of
the loan review procedures.
The Corporation's lending is concentrated in its local market
area. Its non-performing loans primarily were made to the
Corporation's customers who operated in northeastern New
Jersey. The degree of risk inherent in all of the Corporation's
lending activities is influenced heavily by general economic
conditions in the immediate market area. Among the factors
which tend to increase or decrease portfolio risk are changes
in local or regional real estate values, income levels and
energy prices. These factors, coupled with levels of
unemployment, tax rates, governmental actions and market
conditions affecting the demand for credit among qualified
borrowers, are also important determinants of the risk inherent
in the Corporation's lending.
General economic conditions in the State of New Jersey have
improved over the past year. Interest rates have increased,
due in part to action by the Federal Reserve Board and the
general real estate interest rates have shown an upward trend
and real estate values and employment levels are fairly stable
and in some cases have shown an upward movement.
The components of nonperforming assets are delinquent loans,
nonperforming assets and renegotiated loans. Each component is
discussed in greater detail below. Nonperforming assets consist
of nonaccrual loans, accruing loans past due 90 days or more
delinquent, and ORE. It is the Corporation's policy to place
a loan on nonaccrual status when, in the opinion of management,
the ultimate collectibility of the principal or interest on the
loan becomes doubtful. As a general rule, a commercial loan or
real estate loan more than 90 days past due with respect to
principal or interest is classified as a nonaccrual loan.
Installment loans generally are not placed on nonaccrual status
but, instead, are charged off at 90 days past due, except where
the loans are secured and foreclosure proceedings have
commenced.
Loans are considered renegotiated if, for economic or legal
reasons, a concession has been granted to the borrower related
<PAGE>
to the borrower's financial difficulties that the creditor
would not otherwise consider. The Corporation has renegotiated
certain loans in instances where a determination was made that
greater economic value will be realized under new terms than
through foreclosure, liquidation, or other disposition. ORE
includes both loan collateral that has been formally
repossessed and collateral that is in the Corporation's
possession and under its control without legal transfer of
title.
At the time of classification as ORE, loans are reduced to the
fair value of the collateral (if less than the loan receivable)
by charge-offs against the allowance for possible loan losses.
ORE is carried on the books at the lower of cost or fair value,
less estimated costs to sell. Subsequent valuation adjustments
to the fair value of the collateral are charged or credited to
current operations.
The following table sets forth the composition of the
Corporation's nonperforming assets and related asset quality
ratios as of the dates indicated. All of such assets were
domestic assets since the Corporation had no foreign loans.
June 30, December 31,
1996 1995
Non-accruing loans $1,490 $1,422
Renegotiated loans 1,075 517
Total non-performing loans $2,565 $1,939
Loans past due 90 days and accruing $1,201 1,125
Other real estate 2,121 2,070
Total non-performing assets $5,887 $5,134
Asset Quality Ratios
Non-performing loans to total gross loans 1.85% 1.47%
Non-performing assets to total gross loans 4.25% 3.80%
Non-performing assets to total assets 2.30% 2.03%
Allowance for possible loan losses to
non-performing loans 92.48% 120.27%
Allowance for possible loan losses to gross
loans 1.71% 2.28%
During the six months ended June 30, 1996, gross interest
income of $41 would have been recorded on loans accounted for
on a nonaccrual basis if the loans had been current throughout
the period. No interest was included on such loans during such
period. The Corporation had no restructured loans during this
period.
<PAGE>
Impaired Loans - In accordance with SFAS No. 114, the
Corporation utilizes the following information when measuring
its allowance for possible loan losses. A loan is considered
impaired when it is probable that the Corporation will be
unable to collect all amounts due according to the contractual
terms of the loan agreement. These loans consist primarily of
non-accrual loans where situations exist which have reduce the
probability of collection in accordance with contractual terms.
As of June 30, 1996 the Corporation's recorded investment in
impaired loans and the related valuation allowance calculated
under SFAS No. 114 are as follows:
Recorded Valuation
Investment Allowance
Impaired loans -
Valuation allowance required $2,525 $ 658
No valuation allowance required 212 -
Total impaired loans $2,737 $ 658
This valuation allowance is included in the allowance for
possible loan losses on the Corporation's statement of
condition.
The average recorded investment in impaired loans for the six-month
period ended June 30, 1996 was $2,400.
Interest payments received on impaired loans are recorded as
interest income unless collection of the remaining recorded
investment is doubtful in which event payments received are
recorded as reductions of principal. The Corporation
recognized interest income on impaired loans of $13 for the
six-month period ended June 30, 1996.
Analysis of the Allowance For Possible Loan Losses
The allowance for possible loan losses is determined by
management based upon its evaluation of the known, as well as
the inherent, risks within the Corporation's loan portfolio,
and is maintained at a level considered adequate to provide for
potential loan losses. The allowance for possible loan losses
is increased by provisions charged to expense and recoveries of
<PAGE>
prior charge-offs, and is reduced by charge-offs. In
establishing the allowance for possible loan losses, management
considers, among other factors, previous loss experience, the
performance of individual loans in relation to contract terms,
the size of particular loans, the risk characteristics of the
loan portfolio generally, the current status and credit
standing of borrowers, management's judgment as to prevailing
and anticipated real estate values, other economic conditions
in the Corporation's market, and other factors affecting credit
quality. Management believes the allowance for possible loan
losses at June 30, 1996 of $2,372 or 92.48% of nonperforming
loans, was adequate.
The Corporation's management continues to actively monitor the
Corporation's asset quality and to charge off loans against the
allowance for possible loan losses as it deems appropriate.
Although management believes it uses the best information
available to make determinations with respect to the allowance
for possible loan losses, future adjustments may be necessary
if economic conditions differ substantially from the
assumptions used in making the initial determinations.
At June 30, 1996, the allowance for possible loan losses
increased by $40 over the amount recorded at December 31, 1995.
The following table represents transactions affecting the
allowance for possible loan losses during the six-month period
ended June 30, 1996.
Balance at beginning of period, December 31, 1995 $2,332
Charge-offs:
Commercial, financial and agricultural 67
Real estate--mortgage 120
Installment loans to individuals 8
195
Recoveries:
Commercial, financial and agricultural 37
Real estate--mortgage 9
Installment loans to individuals 9
55
Net charge-offs 140
Provision charged to operations
during the six-month period 180
Balance at end of period, June 30, 1996 $2,372
Ratio of net charge-offs during the
six-month period to average loans
outstanding during that period 0.10%
<PAGE>
Allocation of the Allowance for Possible Loan Losses
The following table sets forth the allocation of the allowance for possible
loan losses by loan category amounts, the percent of loans in each category
to total loans in the allowance, and the percent of loans in each category
to total loans, at June 30, 1996.
Balance at June 30, 1996
applicable to:
Percent of
Loans in each
Percent of category to
Amount Allowance total loans
Commercial, financial
and agricultural $1,169 49% 54%
Real estate--mortgage 678 29% 40%
Installment loans
to individuals 315 13% 6%
Unallocated 210 9% n.a.
Total $2,372 100% 100%
Management has determined from continued evaluation of the
various elements of the loan portfolio, previous charge-off
experience, collateral evaluation and borrower's credit
histories, that different risks are associated with each loan
category. Accordingly, management has assigned general reserve
percentages within each loan category, in addition to specific
reserves allocated to individual loans within each category.
B. Results of Operations: Three and Six months ended June 30,
1996 and 1995
General. The Corporation's results of operations are dependent
primarily on its net interest and dividend income, which is the
difference between interest earned on its loans and investments
and the interest paid on interest-bearing liabilities. The
Corporation's net income is also affected by the generation of
noninterest income, which primarily consists of service fees on
deposit accounts and other income. Net interest income is
determined by (I) the difference between yields earned on
interest-earning assets and rates paid on interest-bearing
liabilities ("interest rate spread") and (ii) the relative
amounts of interest-earning assets and interest-bearing
liabilities. The Corporation's interest rate spread is
affected by regulatory, economic and competitive factors that
influence interest rates, loan demand and deposit flows and
general levels of nonperforming assets. In addition, net
income is affected by the level of operating expenses and
<PAGE>
establishment of loan loss reserves and ORE reserves.
The operations of the Corporation and the entire banking
industry are significantly affected by prevailing economic
conditions, competition and the monetary and fiscal policies of
governmental agencies. Lending activities are influenced by
the demand for and supply of real estate, competition among
lenders, the level of interest rates and the availability of
funds. Deposit flows and costs of funds are influenced by
prevailing market rates of interest, primarily on competing
investments, account maturities and the levels of personal
income and savings in the market area.
Three and Six Months Ended June 30, 1996. The Corporation
earned net income of $522 or $0.28 per share and $1,004 or
$0.53 per share, for the three- and six-month periods ended
June 30, 1996, compared to $633 or $0.34 per share and $1,022
or $0.58 per share, for the same period in 1995.
Interest income increased by $112 and $1,333 for the three- and
six-month periods ended June 30, 1996 over the corresponding
period in 1995. The increase is primarily due to an increase in
average earning assets. Other income decreased by $349 for the
three-month period ended June 30, 1996 over the comparable
period in 1995. The majority of such decrease is directly
related to a decline in fee income generated from merchant card
processing service which the Corporation discontinued in 1996.
Total interest expense increased by $632 for the six-month
period ended June 30, 1996 over the corresponding period in the
prior year, primarily due to an increase in average rate
related liabilities. Total interest expense for the
three-month period ended June 30, 1996 did not increase significantly
over the same period in the prior year. Total other expenses
increased by $760 for the six-month period ended June 30, 1996
compared to the same period in the prior year. Of the total
increase, $469 was attributable to increases in salaries and
employee benefits and $427 in occupancy and equipment expense
coupled with a decrease of $112 in other operating expenses.
The majority of these increases are related to the Family
First merger and general growth of the Subsidiary Banks. Total
other expenses decreased by $130 for the three-month period
ended June 30, 1996 over the comparable period. The majority
of this decrease is related to the expenses associated with
merchant card processing service which was discontinued.
<PAGE>
Some Specific Factors Affecting Future Results of Operations
Although future movement of interest rates cannot be predicted
with certainty, the interest rate sensitivity of the
Corporation's assets and liabilities are such that a decline in
interest rates during the next few months would have a
favorable impact on the Corporation's results of operations.
However, because overall future performance is dependent on
many other factors, past performance is not necessarily an
indication of future results and there can be no guarantee
regarding future overall results of operations.
Earnings Per Share Computation
The Corporation's reported earnings per share of $0.28 and
$0.53 per share for the three- and six-month periods ended June
30, 1996 both take into account the dilutive effect of the
Corporation's outstanding common stock equivalents, namely
stock options and mandatory stock purchase contracts.
The dilution results from the calculation of adjustments to
both the number of weighted average shares outstanding and the
Corporation's net income for the three- and six-month periods
ended June 30, 1996. The effect of these common stock
equivalents was either not significant or anti-dilutive for the
three- and six-month periods ended June 30, 1995.
<PAGE>
GREATER COMMUNITY BANCORP AND SUBSIDIARIES
PART II - OTHER INFORMATION
Item 1 - Legal Proceedings
The Corporation is party in the ordinary course of business,
to litigation involving collection matters, contract claims
and other miscellaneous causes of action arising from its
business. Management does not consider that any such
proceedings depart from usual routine litigation and in its
judgement, neither the Corporation's consolidated financial
position nor its results of operations will be affected
materially by any present proceedings.
Item 2 - Changes in Securities
None.
Item 3 - Default Upon Senior Securities
None.
Item 4 - Submission of Matters to a Vote of Security Holders
See form 10-QSB for quarter ended March 31, 1996 regarding
the 1996 Annual Meeting of Stockholders held on April 30,
1996.
Item 5 - Other information
None.
Item 6 - Exhibits and Reports on Form 8-K
(a) Exhibits. None.
(b) Reports on Form 8-K. The following report on Form 8-K
was filed during the quarter ended June 30, 1996:
1. Form 8-K filed June 25, 1996 reporting a change in
the Corporation's change of principal independent
accountants on June 18, 1996, including Exhibit
16.1, letter from Arthur Andersen LLP dated June
24, 1996
<PAGE>
The following additional reports were filed after the
end of the quarter ended June 30, 1996:
2. Form 8-K/A filed July 2, 1996 amending the Form 8-K
referred to above regarding the change of principal
independent accountants
3. Form 8-K filed July 8, 1996 reporting the filing on
June 28, 1996 of the Certificate of Amendment of
Certificate of Incorporation changing the corporate
name from "Great Falls Bancorp" to "Greater
Community Bancorp" and increasing the authorized
common stock [Note: the text of this document was
previously filed as Exhibit 3.1 to Form 10-QSB for
the quarter ended March 31, 1996]
4. Form 8-K filed July 12, 1996 reporting the filing
on July 3, 1996 of the Restated Certificate of
Incorporation [Note: the text of this document was
previously filed as Exhibit 3.1 to such Form 8-K]
5. Form 8-K filed August 5, 1996 reporting the
adoption of a plan to reacquire the Corporation's
shares from time to time.
<PAGE>
SIGNATURES
In accordance with the requirements of the Exchange Act, the
registrant caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
GREATER COMMUNITY BANCORP
(Registrant)
Date: August 13, 1996 By:\s\Naqi A. Naqvi
Naqi A. Naqvi, Treasurer
(Duly Authorized Officer and
Principal Financial Officer)
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 9
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> JUN-30-1996
<CASH> 15042
<INT-BEARING-DEPOSITS> 1964
<FED-FUNDS-SOLD> 3267
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 50202
<INVESTMENTS-CARRYING> 37833
<INVESTMENTS-MARKET> 39798
<LOANS> 138455
<ALLOWANCE> (2372)
<TOTAL-ASSETS> 256376
<DEPOSITS> 219203
<SHORT-TERM> 0
<LIABILITIES-OTHER> 12336
<LONG-TERM> 4983
<COMMON> 1883
0
0
<OTHER-SE> 17971
<TOTAL-LIABILITIES-AND-EQUITY> 256376
<INTEREST-LOAN> 3165
<INTEREST-INVEST> 2716
<INTEREST-OTHER> 249
<INTEREST-TOTAL> 9130
<INTEREST-DEPOSIT> 3173
<INTEREST-EXPENSE> 3515
<INTEREST-INCOME-NET> 5615
<LOAN-LOSSES> 180
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 4854
<INCOME-PRETAX> 1575
<INCOME-PRE-EXTRAORDINARY> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1004
<EPS-PRIMARY> 0.53
<EPS-DILUTED> 0.53
<YIELD-ACTUAL> 0
<LOANS-NON> 1490
<LOANS-PAST> 1201
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 2332
<CHARGE-OFFS> 195
<RECOVERIES> 55
<ALLOWANCE-CLOSE> 2372
<ALLOWANCE-DOMESTIC> 2372
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 210
</TABLE>
