SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
-------------------------------------------------------
FORM 10-Q
QUARTERLY REPORT UNDER SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For Quarter Ended March 31, 1997 Commission File Number 0-15040
-------------- -------
PennRock Financial Services Corp.
------------------------------------------------------
(Exact name of registrant as specified in its charter)
Pennsylvania 23-2400021
------------------------------- --------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
1060 Main St.
Blue Ball, Pennsylvania 17506
--------------------------------------- ----------
(Address of principal executive offices) (Zip code)
(717) 354-4541
--------------------------------------------------
Registrant's telephone number, including area code
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter 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
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practical date.
Class Outstanding at May 5, 1997
------------------------------ --------------------------------
Common Stock ($2.50 par value) 6,050,953 Shares
<PAGE> 1
PENNROCK FINANCIAL SERVICES CORP.
---------------------------------
FORM 10-Q
---------
For the Quarter Ended March 31, 1996
Contents
--------
PART I. FINANCIAL INFORMATION
- -----------------------------
Item 1. Financial Statements
Consolidated balance sheets - March 31, 1997,
December 31, 1996 and March 31, 1996.
Consolidated statements of income - Three months ended
March 31, 1997 and 1996.
Consolidated statements of cash flows - Three months
ended March 31, 1997 and 1996.
Notes to condensed consolidated financial statements - March 31, 1996.
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations
PART II. OTHER INFORMATION
- --------------------------
Item 6. Exhibits and Reports on Form 8-K
SIGNATURES
- ----------
<PAGE> 2
Part I
For the Quarter Ended March 31, 1997
Item 1. Financial Statements
PENNROCK FINANCIAL SERVICES CORP. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
March 31, December 31, March 31,
(Amounts in thousands) 1997 1996 1996
------------ ----------- ------------
<S> <C> <C> <C>
ASSETS
Cash and due from banks $ 21,376 $ 16,405 $ 17,268
Short-term investments 764 1,244 465
Mortgages held for sale 8,399 5,690 6,069
Securities available for sale 205,281 186,026 200,912
Loans:
Loans, net of unearned income 337,142 319,354 308,401
Allowance for loan losses (4,147) (4,049) (3,693)
--------- --------- ---------
Net loans 332,995 315,305 304,708
Bank premises and equipment 10,924 10,662 9,181
Accrued interest receivable 3,693 3,333 3,469
Other assets 10,417 8,938 7,342
--------- --------- ---------
Total assets $593,849 $547,603 $549,414
========= ========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Deposits:
Non-interest bearing $ 67,856 $ 65,537 $ 59,259
Interest bearing 387,267 385,930 358,819
--------- --------- ---------
Total deposits 455,123 451,467 418,078
Short-term borrowings 41,093 22,106 64,269
Long-term debt 37,000 14,000 9,000
Accrued interest payable 2,576 2,758 2,570
Other liabilities 4,537 3,543 4,134
--------- --------- ---------
Total liabilities 540,329 493,874 498,051
Stockholders' Equity:
Common stock, par value $2.50 per
share; authorized - 20,000,000
shares; issued - 6,077,299 shares
of which 26,346, 39,880 and
16,973 shares are held as
treasury stock, respectively 15,193 15,193 15,193
Surplus 11,107 11,153 11,106
Unrealized losses on securities
available for sale, net of
deferred taxes (2,424) (816) (494)
Retained earnings 30,117 28,939 25,846
--------- --------- ---------
53,993 54,469 51,651
Less treasury stock, at cost (473) (740) (288)
--------- --------- ---------
Total stockholders' equity 53,520 53,729 51,363
--------- --------- ---------
Total liabilities and
stockholders' equity $593,849 $547,603 $549,414
========= ========= =========
</TABLE>
<PAGE> 3
PENNROCK FINANCIAL SERVICES CORP. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
<TABLE>
<CAPTION> Three Months Ended
(Amounts in thousands) March 31,
-------------------
1997 1996
------- -------
<S> <C> <C>
Interest income:
Interest and fees on loans $7,430 $6,900
Securities:
Taxable 2,109 2,324
Tax-exempt 898 588
Mortgages held for sale 192 87
Other 18 7
------- -------
Total interest income 10,647 9,906
Interest expense:
Deposits 4,093 3,892
Short-term borrowings 418 691
Long-term debt 196 136
------- -------
Total interest expense 4,707 4,719
------- -------
Net interest income 5,940 5,187
Provision for loan losses 30 149
------- -------
5,910 5,038
Other income:
Service charges on deposit
accounts 328 277
Other service charges and fees 18 12
Fiduciary activities 199 166
Net realized gains (losses) on sales
of available for sale securities (5) 415
Mortgage banking 419 20
Other 149 13
------- -------
Total other income 1,108 903
------- -------
Net interest and other income 7,018 5,941
------- -------
Other expenses:
Salaries and benefits 2,588 2,019
Occupancy, net 411 312
Equipment depreciation and service 295 276
Other 1,240 1,055
------- -------
Total other expense 4,534 3,662
------- -------
Income before income taxes 2,484 2,279
Income taxes 578 618
------- -------
Net income $1,906 $1,661
======= =======
Earnings per share $ .31 $ .27
Cash dividends per share .12 .11
</TABLE>
<PAGE> 4
PENNROCK FINANCIAL SERVICES CORP. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
<TABLE>
<CAPTION>
Three Months Ended
March 31,
(Amounts in thousands) -----------------------
1997 1996
--------- ---------
<S> <C> <C>
Cash used in operations ($ 776) ($ 170)
Investing activities:
Proceeds from sales of securities available
for sale 11,298 24,231
Purchases of securities available for sale (36,156) (34,215)
Maturities of securities available for sale 3,213 3,612
Net increase in loans (17,720) (10,493)
Purchases of premises and equipment (504) (290)
-------- --------
Net cash used in investing activities (39,869) (17,155)
Financing activities:
Net increase non-interest bearing deposits 2,319 1,484
Net increase (decrease)in interest bearing
deposits 1,337 (1,335)
Increase in short-term borrowings 18,987 16,792
Increase in long-term debt 23,000
Issuance of common and treasury 328 247
Acquisition of treasury stock (110) (288)
Cash dividends (725) (669)
-------- --------
Net cash provided by financing activities 45,136 16,231
-------- --------
Increase (decrease) in cash and
cash equivalents 4,491 (1,094)
Cash and cash equivalents,
beginning of year 17,649 18,827
-------- --------
Cash and cash equivalents, end of period $22,140 $17,733
======== ========
</TABLE>
<PAGE> 5
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
March 31, 1997
NOTE 1. ACCOUNTING POLICIES
The accompanying consolidated financial statements include the accounts of
PennRock Financial Services Corp. and its subsidiaries. All material
intercompany balances and transactions have been eliminated in consolidation.
PennRock Financial Services Corp. (PennRock or the Company) is a bank holding
company incorporated under the laws of Pennsylvania in 1986. Blue Ball
National Bank (the Bank), a wholly owned subsidiary of PennRock, provides a
broad rang of banking, trust and other financial services to consumers, small
businesses and corporations in south-central and southeastern Pennsylvania.
The Bank's mortgage banking subsidiary, Atlantic Regional Mortgage Corporation
(ARMCO) originates and sells residential first-mortgage loans of various types
in the Maryland, Delaware, Pennsylvania, Washington D.C., Virginia, North
Carolina and South Carolina markets.
The information contained in the financial statements is unaudited. In the
opinion of management, all adjustments (consisting of normal recurring
accruals) considered necessary for a fair presentation of the results of
interim periods have been made. Accordingly, they do not include all of the
information and footnotes required by generally accepted accounting
principles for complete financial statements. Operating results for the three
months ended March 31, 1997 are not necessarily indicative of the results
that may be expected for the year ended December 31, 1997.
The accounting policies of PennRock Financial Services Corp. and its
subsidiaries, as applied in the consolidated interim financial statements
presented, are substantially the same as those followed on an annual basis
as presented in the 1996 Annual Report to shareholders except that, as of
January 1, 1997, PennRock adopted Statement of Financial Accounting
Standard No. 125 (SFAS 125), "Accounting for Transfers and Servicing of
Financial Assets and Extinguishments of Liabilities" issued by the Financial
Accounting Standards Board in June 1996, as discussed in Note 3 of this
Form 10-Q. For further information on PennRock's accounting policies,
refer to the consolidated financial statements and footnotes thereto included
in PennRock's annual report on Form 10-K for the year ended December 31, 1996.
NOTE 2. COMMITMENTS AND CONTINGENT LIABILITIES
The financial statements do not reflect various commitments and contingent
liabilities, such as commitments to extend credit, letters of credit,
guarantees, and liability for assets held in Trust, which arise in the normal
course of business. Commitments under outstanding letters of credit amounted
to $9.8 million at March 31, 1997. Management does not anticipate any
significant loss as a result of these transactions.
<PAGE> 6
NOTE 3. NEW ACCOUNTING STANDARDS
In June 1996, the Financial Accounting Standards Board issued Statement of
Financial Accounting Standard No. 125 (SFAS 125), "Accounting for Transfers
and Servicing of Financial Assets and Extinguishments of Liabilities." SFAS
125 provides accounting and reporting standards for transfers and servicing
of financial assets and extinguishments of liabilities based on consistent
application of a financial-components approach that focuses on control. It
distinguishes transfers of financial assets that are sales from transfers
that are secured borrowings.
Under the financial-components approach, after a transfer of financial
assets, an entity recognizes all financial and servicing assets it controls
and liabilities it has incurred and ceases recognition of financial assets it
no longer controls and liabilities that have been extinguished. The
financial-components approach focuses on the assets and liabilities that
exist after the transfer. Many of these assets and liabilities are
components of financial assets that existed prior to the transfer. If a
transfer does not meet the criteria for a sale, the transfer is accounted for
as a secured borrowing with a pledge of collateral.
SFAS 125 extends the "available for sale" or "trading" approach in SFAS 115,
"Accounting for Certain Investments in Debt and Equity Securities," to non-
security financial assets that can contractually be prepaid or otherwise
settled in such a way that the holder of the asset would not recover
substantially all of its recorded investment. Thus, non-security financial
assets (no matter how acquired) that are subject to prepayment risk that
could prevent recovery of substantially all of the recorded amount are to be
reported at fair value with the change in fair value accounted for depending
on the asset's classification as "available-for-sale" or "trading." SFAS 125
also amends SFAS 115 to prevent a security from being classified as "held-to-
maturity" of the security can be prepaid or otherwise settled in such a way
that the holder of the security would not recover all of its recorded
investment.
SFAS 125 requires that a liability cease to be recognized if and only if
either (a) the debtor pays the creditor and is relieved of its obligation for
the liability or (b) the debtor is legally released from being the primary
obligor under the liability either judicially or by the creditor.
SFAS 125 is effective for transfers of financial assets and extinguishments
of liabilities occurring after December 31, 1996 except that the rules
governing secured borrowing and collateral as well as transfer of financial
assets for repurchase agreements, dollar rolls and securities lending are
delayed until years beginning after December 31, 1997. Earlier or
retroactive application is not permitted. Also, the extension of the SFAS
115 approach to certain non-security financial assets and the amendment to
SFAS 115 is effective for financial assets held on or acquired after January
1, 1997. No material financial statement impact is expected from the adoption
of SFAS 125.
<PAGE> 7
In February 1997, the Financial Accounting Standards Board issued Statement of
Financial Accounting Standard No. 128 (SFAS 128), "Earnings Per Share."
SFAS 128 simplifies the standards for computing earnings per share (EPS) by
amending Accounting Principles Board Opinion No. 15. SFAS 128 replaces the
presentation of primary EPS with a presentation of basic EPS and requires
dual presentation of basic and diluted EPS on the face of the income
statement for all entities with complex capital structures. It also requires
a reconciliation of the numerator and denominator of basic and diluted EPS.
SFAS 128 is effective for periods ending after December 15, 1997 and requires
restatement of all prior period EPS data presented. SFAS 128 will not have a
significant impact on the earnings per share of the Company.
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations
This section presents management's discussion and analysis of the financial
condition and results of operations of PennRock Financial Services Corp. and
its subsidiaries. This discussion should be read in conjunction with the
financial statements which appear elsewhere in this report.
Total assets of PennRock increased $46.2 million or 8.4% since the end of 1996
and by $44.4 million or 8.1% over March 31, 1996. The increases in assets
were reflected in increases in loans outstanding as loans increased $17.8
million or 5.6% for the year-to-date and by $28.7 million or 9.3% since last
year and by increases in securities (measured on an amortized cost basis)
which increased $21.7 million or 11.6% since year-end and by $7.6 million
or 3.6% from March 31 last year.
Net income for the current quarter was $1.9 million or $.31 per share
compared with $1.7 million or $.27 per share for the first quarter of 1996,
an increase of $245,000 or 14.8%. Net interest income increased $712,000 from
the first quarter of 1996 due to volume increases and wider spreads, while
other income excluding security transactions increased $665,000 and other
expenses increased $872,000.
Dividends declared for the quarter totaled $726,000 or $.12 per share. This
represented 38.1% of net income. Dividends declared during the first quarter
of last year were $668,000 or $.11 per share.
NET INTEREST INCOME
Net interest income is the product of the volume of average earning assets
and the average rates earned on them, less the volume of average interest
bearing liabilities and the average rates paid on them. The amount of net
interest income is affected by changes in interest rates, volumes and the mix
of earning assets and paying liabilities. For analytical purposes, net
interest income is adjusted to a taxable equivalent basis. This adjustment
allows for a more accurate comparison among taxable and tax-exempt assets by
increasing tax-exempt income by an amount equivalent to the federal income
tax which would have been paid if this income were taxable at the statutory
rate of 34%.
<PAGE> 8
Table 1 presents net interest income on a fully taxable equivalent basis for
the first quarter of 1997 and 1996. For the first quarter of 1997, net
interest income on a fully taxable equivalent basis totaled $6.4 million, an
increase of $973,000 or 17.9% from $5.4 million earned for the same period
last year.
TABLE 1 - NET INTEREST INCOME
<TABLE>
<CAPTION>
Three Months Ended
(Amounts in thousands) March 31,
--------------------
1997 1996
-------- --------
<S> <C> <C>
Total interest income $10,647 $9,906
Total interest expense 4,707 4,719
------- -------
Net interest income 5,940 5,187
Tax equivalent adjustment 474 254
------- -------
Net interest income
(fully taxable equivalent) $ 6,414 $5,441
======= =======
</TABLE>
Table 2 presents the average balances, taxable equivalent interest income and
expense and rates for PennRock's assets and liabilities for the three months
ended March 31, 1997 and 1996. Both the interest rate spread and net interest
margin are higher in 1997 than in 1996 because the average rates on interest
earning assets increased by 44 basis points while the average cost of funds
declined by 15 basis points. As a result, PennRock's interest rate spread
and net interest margins both increased 58 basis points from the first quarter
of last year.
<PAGE> 9
TABLE 2 - AVERAGE BALANCES, RATES, AND INTEREST INCOME AND EXPENSE
<TABLE>
<CAPTION>
Three Months Ended March 31,
(Amounts in thousands) ------------------------------------------------------
1997 1996
-------------------------- --------------------------
Average Yield/ Average Yield/
Balance Interest Rate Balance Interest Rate
-------- -------- ------ -------- -------- ------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Interest earning assets
Money market investments $ 1,310 $ 18 5.45% $ 310 $ 8 10.24%
Mortgages held for sale 4,780 192 15.94% 3,502 87 9.86%
Securities available for sale 193,893 3,455 7.07% 197,686 3,165 6.35%
Loans:
Mortgage 179,072 4,060 9.00% 165,289 3,726 8.94%
Commercial 86,761 1,943 8.88% 86,817 1,931 8.82%
Consumer 57,078 1,453 10.10% 50,004 1,243 9.86%
-------- ------- -------- -------
Total loans 322,911 7,456 9.16% 302,110 6,900 9.06%
-------- ------- -------- -------
Total earning assets 522,894 11,121 8.44% 503,608 10,160 8.00%
Other assets 34,423 ------- 30,167 -------
-------- --------
$557,317 $533,755
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Interest bearing deposits:
Demand $ 72,248 440 2.39% $ 70,962 449 2.51%
Savings 61,370 324 2.17% 60,726 333 2.18%
Time 241,055 3,329 5.20% 229,821 3,110 5.37%
-------- ------- -------- -------
Total interest bearing deposits 374,673 4,093 4.21% 361,509 3,892 4.27%
Short-term borrowings 41,932 418 4.97% 50,534 691 5.42%
Long-term debt 5,902 196 5.22% 9,000 136 6.00%
-------- ------- -------- -------
Total interest bearing liabilities 422,507 4,707 4.30% 421,043 4,719 4.45%
Non-interest bearing deposits 59,455 ------- 53,778 -------
Other liabilities 8,640 6,476
Stockholders' equity 50,613 52,478
-------- --------
Total liabilities and
stockholders' equity $541,215 $533,755
======== ========
Net interest income $6,414 $ 5,441
====== =======
Interest rate spread 4.14% 3.56%
====== =====
Net interest margin 4.87% 4.29%
====== =====
<PAGE> 10
PROVISION AND ALLOWANCE FOR LOAN LOSSES
The provision for loan losses charged to earnings was $30,000 for the first
quarter of 1996 compared with $149,000 for the first quarter of last year.
The provision is based on management's estimate of the amount needed to
maintain an adequate allowance for loan losses. The adequacy of the allowance
will continue to be examined in light of past loan loss experience, current
economic conditions, volume of non-performing and delinquent loans and other
relevant factors. The allowance is established at a level considered by
management to be adequate to absorb potential future losses contained in the
portfolio and is monitored on a continuous basis with independent formal
reviews conducted semiannually. The allowance is increased by provisions
charged to expense and decreased by net charge-offs.
Table 3 reflects an analysis of the allowance for loan losses for the first
quarter of 1997 and 1996.
TABLE 3 - ANALYSIS OF ALLOWANCE FOR LOAN LOSSES
</TABLE>
<TABLE>
<CAPTION>
Three Months Ended
(Amounts in thousands) March 31,
-------------------
1997 1996
-------- --------
<S> <C> <C>
Balance, beginning of period $4,049 $3,661
Provision charged to operating expense 30 149
Total loans charged off (51) (119)
Total recoveries 119 2
------- -------
Net charge-offs 98 (118)
------- -------
Balance, end of period $4,147 $3,693
======= =======
Total loans:
Average $322,911 $302,110
Period-end 337,142 308,401
Ratios:
Net charge-offs to
average loans (annualized) .06% .16%
Allowance for loan losses to
period-end loans 1.23% 1.20%
</TABLE>
<PAGE> 11
NON-PERFORMING ASSETS
Table 4 reflects PennRock's non-performing assets at March 31, 1997,
December 31, 1996 and March 31, 1996. PennRock's policy is to
discontinue the accrual of interest on loans for which the principal or
interest is past due 90 days or more unless the loan is well secured and
corrective action has begun or the loan is in the process of collection.
When a loan is placed on non-accrual status, any unpaid interest is charged
against income. Other real estate owned represents property acquired through
foreclosure.
TABLE 4 - NON-PERFORMING ASSETS
<TABLE>
<CAPTION>
March 31, December 31, March 31,
(Amounts in thousands) 1997 1996 1996
------------ ------------ ------------
<S> <C> <C> <C>
Non-accrual loans $326 $ 795 $ 519
Loans accruing but 90 days past due
as to principal or interest 57 311 584
--------- --------- ---------
Total non-performing loans 383 1,106 1,103
Other real estate owned 187 187 558
--------- --------- ---------
Total non-performing assets $570 $1,293 $1,661
========= ========= =========
Ratios:
Non-performing loans to total loans 0.11% 0.35% 0.36%
Non-performing assets to total loans
and other real estate owned 0.17% 0.40% 0.54%
Allowance for loan losses to
non-performing loans 1083.77% 366.09% 334.81%
</TABLE>
LIQUIDITY
The purpose of liquidity management is to ensure that there are sufficient
cash flows available to meet a variety of needs. These include financial
commitments such as satisfying the credit needs of our borrowers and
withdrawals by our depositors, the ability to capitalize in investment and
business opportunities as they occur, and the funding of PennRock's own
operations. Liquidity is provided by maturities and sales of investment
securities, loan payments and maturities and liquidating money market
investments such as federal funds sold. Liquidity is also provided by short-
term lines of credit with various correspondents and fixed and variable rate
advances from the Federal Home Loan Bank of Pittsburgh and other
correspondent banks. However, PennRock's primary source of liquidity lies in
PennRock's ability to renew, replace and expand its base of core deposits
(consisting of demand, NOW, money market, savings, and time deposits of less
than $100,000).
<PAGE> 12
Total deposits increased $3.7 million or .8% since year end and $37.0
million or 8.9% from last year. Total borrowings increased $42.0 million or
116.3% since year end and by $4.8 million or 6.6% from last year. Table 5
reflects the changes in the major classifications of deposits and borrowings
by comparing the balances at the end of the first quarter of 1997 with year-
end and the first quarter of 1996.
TABLE 5 - DEPOSITS AND BORROWINGS BY MAJOR CLASSIFICATION
(Amounts in thousands)
<TABLE>
<CAPTION>
March 31, December 31, March 31,
1997 1996 1996
------------- ------------ -------------
<S> <C> <C> <C>
Non-interest bearing $ 67,856 $ 65,537 $ 59,259
NOW accounts 38,575 41,209 37,886
Money market deposit accounts 33,037 34,125 32,272
Savings accounts 60,273 59,977 62,207
Time deposits under $100,000 227,955 224,071 204,978
--------- --------- ---------
Total core deposits 427,696 424,919 396,602
Time deposits of $100,000 or more 27,427 26,548 21,476
--------- --------- ---------
Total deposits 455,123 451,467 418,078
Short-term borrowings 41,093 22,106 64,269
Long-term debt 37,000 14,000 9,000
--------- --------- ---------
Total deposits and borrowings $533,216 $487,573 $491,347
========= ========= =========
</TABLE>
CAPITAL RESOURCES:
Total stockholders' equity increased $2.2 million or 4.2% from March 31,
1996 and declined $209,000 or .39% since year-end 1996. Stockholders' equity
is impacted by changes in the unrealized market gains and losses of the
securities available for sale portfolio, net of deferred taxes. The
securities available for sale portfolio had net unrealized losses of $3.8
million, $1.2 million and $.7 million at March 31, 1997, December 31, 1996
and March 31, 1996, respectively.
On June 27, 1995, the Company announced that the Board of Directors had
authorized the purchase of up to 200,000 shares of its outstanding common
stock. The shares are to be used for general corporate purposes including
employee benefit and executive compensation plans or for the dividend
reinvestment plan. On June 11, 1996, the Board of Directors extended this
program for an additional 12 months. Since the program was adopted PennRock
has repurchased 120,083 shares of which 26,346 shares were held as treasury
shares as of March 31, 1997.
Table 6 shows PennRock's capital resources at March 31, 1997 and at
December 31 and March 31, 1996. PennRock exceed all minimum capital
guidelines.
<PAGE> 13
TABLE 6 - CAPITAL RESOURCES
<TABLE>
<CAPTION>
March 31, December 31, March 31,
1997 1996 1996
------------- ------------ -------------
<S> <C> <C> <C>
Leverage ratio:
Total capital to total assets 9.98% 9.96% 9.38%
Tier 1 capital to total assets 9.28% 9.80% 9.21%
Risk-based capital ratios:
Tier 1 capital to risk weighted
assets 14.29% 14.95% 15.52%
Total capital to risk weighted
assets 15.37% 16.08% 16.64%
</TABLE>
<PAGE> 14
PART II. OTHER INFORMATION
---------------------------
For the Quarter ended March 31, 1997
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
27. Financial Data Schedule regarding unaudited interim financial
information of PennRock for the quarter ended March 31, 1997.
(b) Reports on Form 8-K
There were no reports on Form 8-K filed for the three months ended
March 31, 1997.
<PAGE> 15
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.
PennRock Financial Services Corp.
---------------------------------
(Registrant)
Date: May 13, 1997 By: /s/ Melvin Pankuch
- ----------------------- -----------------------------------------------
Melvin Pankuch
Executive Vice President and
Chief Executive Officer
Date: May 13, 1997 By: /s/ George B. Crisp
- ------------------------ -----------------------------------------------
George B. Crisp
Vice President and Treasurer
(Principal Financial and Accounting Officer)
<PAGE> 16
<TABLE> <S> <C>
<ARTICLE> 9
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> MAR-31-1997
<CASH> 21,376
<INT-BEARING-DEPOSITS> 764
<FED-FUNDS-SOLD> 0
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 205,281
<INVESTMENTS-CARRYING> 0
<INVESTMENTS-MARKET> 0
<LOANS> 337,142
<ALLOWANCE> 4,147
<TOTAL-ASSETS> 593,849
<DEPOSITS> 455,123
<SHORT-TERM> 41,093
<LIABILITIES-OTHER> 7,113
<LONG-TERM> 37,000
0
0
<COMMON> 15,193
<OTHER-SE> 38,327
<TOTAL-LIABILITIES-AND-EQUITY> 593,849
<INTEREST-LOAN> 7,430
<INTEREST-INVEST> 3,007
<INTEREST-OTHER> 210
<INTEREST-TOTAL> 10,647
<INTEREST-DEPOSIT> 4,093
<INTEREST-EXPENSE> 4,707
<INTEREST-INCOME-NET> 5,940
<LOAN-LOSSES> 30
<SECURITIES-GAINS> (5)
<EXPENSE-OTHER> 4,534
<INCOME-PRETAX> 2,484
<INCOME-PRE-EXTRAORDINARY> 2,484
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,906
<EPS-PRIMARY> .31
<EPS-DILUTED> .31
<YIELD-ACTUAL> 4.87
<LOANS-NON> 326
<LOANS-PAST> 57
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 7,264
<ALLOWANCE-OPEN> 4,049
<CHARGE-OFFS> 51
<RECOVERIES> 120
<ALLOWANCE-CLOSE> 4,147
<ALLOWANCE-DOMESTIC> 4,147
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 2,788
</TABLE>
