UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
---------------------
FORM 10-Q
(Mark One)
X QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the period ended March 31, 1997
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 0-23134
PEOPLES BANK CORPORATION OF INDIANAPOLIS
(Exact name of registrant as specified in its charter)
Indiana 35-1681096
- --------------------------------------------------------------------------------
(State of other jurisdiction (I.R.S. Employer
of incorporation or organization) identification no.)
130 East Market Street Indianapolis, Indiana 46204
- --------------------------------------------------------------------------------
(Address of principal (Zip Code)
executive offices)
(317) 237-8121
(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 period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. X Yes _ No
Indicate the number of shares outstanding of each of the issuer's
classes of common stock, as of the latest practical date.
Common Shares, without par value
Nonvoting - 1,430,962 shares as of May 5, 1997
Voting - 140,000 shares as of May 5, 1997
<PAGE>
PEOPLES BANK CORPORATION OF INDIANAPOLIS
INDEX
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
Consolidated Balance Sheets at March 31, 1997
and December 31, 1996.............................................. 2
Consolidated Statements of Income for three months
ended March 31, 1997 and 1996...................................... 3
Consolidated Statements of Changes in Shareholders'
Equity............................................................. 4
Consolidated Statements of Cash Flows for three months
ended March 31, 1997 and 1996...................................... 5
Notes to Consolidated Financial Statements ........................ 6
Item 2. Management's Discussion and Analysis of Results of
Operations and Financial Condition...............................7-14
PART II. OTHER INFORMATION
Item 4. Submission of Matters to a Vote of Security Holders.................15
Item 6. Exhibits and Reports on Form 8-K....................................15
Signatures..................................................................16
<PAGE>
PEOPLES BANK CORPORATION OF INDIANAPOLIS
CONSOLIDATED BALANCE SHEETS
================================================================================
(Dollar amounts in thousands)
<TABLE>
<CAPTION>
March 31, December 31
1997 1996
Assets
<S> <C> <C>
Cash and due from banks $ 21,767 $ 32,252
Federal funds sold 19,800 0
-------- --------
Total cash and equivalents 41,567 32,252
Available-for-sale securities 91,179 94,589
Investment securities 0 0
(Estd market values of $53,335 and $67,086)
Mortgage-backed investments 0 0
(Estd market values of $40,180 and $43,217)
Loans held for sale 339 421
Total loans 344,716 332,953
Allowance for loan losses (4,514) (3,900)
-------- --------
Loans, net 340,202 329,053
Premises and equipment, net 7,738 7,923
Accrued income and other assets 7,355 7,240
-------- --------
Total assets $488,380 $471,478
======== ========
Liabilities
Non interest-bearing deposits $ 75,560 $ 83,911
Interest-bearing deposits 351,300 327,894
-------- --------
Total deposits 426,860 411,805
Short-term borrowings 11,303 10,266
Accrued expenses and other liabilities 4,058 4,058
-------- --------
Total liabilities 442,221 426,129
Shareholders' equity Common shares, no par value:
Authorized:
Voting - 300,000 shares
Nonvoting - 4,000,000 shares
Issued:
Voting - 140,000 shares 950 950
Nonvoting - 1,430,962 shares (1997)
- 1,433,212 shares (1996) 14,690 14,775
Retained earnings 30,460 29,338
Net unrealized gain/(loss) on
available-for-sale securities 59 286
-------- --------
Total shareholders' equity 46,159 45,349
-------- --------
Total liabilities and shareholders' equity $488,380 $471,478
======== ========
</TABLE>
See accompanying notes
<PAGE>
PEOPLES BANK CORPORATION OF INDIANAPOLIS
CONSOLIDATED STATEMENTS OF INCOME
(Dollar amounts in thousands, except per share data)
================================================================================
Three months ended
March 31,
1997 1996
------- -------
Interest income
Interest and fees on loans $ 7,176 $ 6,185
Interest on federal funds sold 220 98
Interest on investments 1,336 1,369
------- -------
Total interest income 8,732 7,652
Interest
Interest on deposits 3,632 3,161
Interest on short-term borrowings 120 179
------- -------
Total interest expense 3,752 3,340
------- -------
Net interest income 4,980 4,312
Provision for loan losses 400 150
------- -------
Net interest income after
provision for loan losses 4,580 4,162
Other operating income
Trust fees 371 353
Service charge income 705 530
Mortgage banking revenue 127 175
Net gain (loss) on
investments (1) (27)
Other operating income 201 231
------- -------
Total other operating income 1,403 1,262
Other operating expenses
Salaries and employee benefits 2,130 1,941
Occupancy expense (net) 434 390
Equipment expense 263 261
FDIC insurance expense 0 0
Advertising Expense 124 135
Other operating expense 902 821
------- -------
Total other operating expenses 3,853 3,548
Income before income taxes 2,130 1,876
Income Taxes 677 565
Net income $ 1,453 $ 1,311
======= =======
Net income per share (Note 3) $ 0.92 $ 0.82
======= =======
See accompanying notes.
<PAGE>
PEOPLES BANK CORPORATION OF INDIANAPOLIS
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
(Dollar amounts in thousands)
1997 1996
-------- --------
Balance at January 1 $ 45,349 $ 41,636
Net Income 1,453 1,311
Cash dividends (329) (286)
Repurchase of common stock (85) 0
Change in net unrealized loss on
available-for-sale securities (229) (83)
-------- --------
Balance at March 31 $ 46,159 $ 42,578
======== ========
<PAGE>
PEOPLES BANK CORPORATION OF INDIANAPOLIS
CONSOLIDATED STATEMENTS OF CASH FLOWS
================================================================================
(Dollar amounts in thousands)
<TABLE>
<CAPTION>
Three months ended
March 31,
1997 1996
-------- --------
Cash flows from operating activities
<S> <C> <C>
Net Income $ 1,453 $ 1,311
Adjustments to reconcile net income to net cash
from operating activities
Depreciation and amortization 298 261
Provision for loan losses 400 150
Net loss on investment securities 1 26
Net amortization/(accretion) on investments 43 62
Net gain on the sale of loans (66) (128)
Change in interest payable and other liabilities 0 (513)
Change in interest receivable and other assets (140) 368
Loans originated for sale, net of sales proceeds 148 (1,035)
-------- --------
Net cash from operating activities 2,137 502
-------- --------
Cash flows from investing activities
Proceeds from maturities and principal
reductions of investment securities 0 0
Proceeds from sales of available-for-sale securities 0 2,971
Proceeds from maturities of available-for-sale securities 11,072 18,343
Purchase of available-for-sale securities (8,082) (9,910)
Loans made to customers, net of principal
collection thereon (11,550) (6,119)
Property and equipment expenditures 60 60
-------- --------
Net cash from investing activities (8,500) 5,345
-------- --------
Cash flows from financing activities
Net change in deposits 15,055 1,948
Net change in short-term borrowings 1,037 6,562
Dividends paid (329) (286)
Purchase of common stock (85) 0
-------- --------
Net cash from financing activities 15,678 (4,900)
-------- --------
Net change in cash and cash equivalents 9,315 947
-------- --------
Cash and cash equivalents at beginning of year 32,252 23,377
-------- --------
Cash and cash equivalents at March 31 $ 41,567 $ 24,324
======== ========
</TABLE>
<PAGE>
Peoples Bank Corporation of Indianapolis
Notes to Consolidated Financial Statements
March 31, 1997
1. Accounting Policies
Except as noted in Note 3, the significant accounting policies followed
by Peoples Bank Corporation of Indianapolis ("the Corporation") for interim
financial reporting are consistent with the accounting policies followed for
annual financial reporting. The consolidated interim financial statements have
been prepared in accordance with instructions to Form 10-Q and may not include
all information and footnotes normally shown for full annual financial
statements. All adjustments which are, in the opinion of management, necessary
for a fair presentation of the results for the periods reported have been
included in the accompanying unaudited consolidated financial statements and all
such adjustments are of a normal recurring nature.
2. Earnings Per Share
Earnings per share are computed based upon the weighted average number
of shares outstanding during the period which were 1,571,837 for the three
months ending March 31, 1997, and 1,589,992 for the three months ending March
31, 1996.
3. Accounting Changes
Financial Accounting Standard No. 125, Accounting for Transfers and
Servicing of Financial Assets and Extinguishment of Liabilities, was issued by
the Financial Accounting Standards Board in 1996. It revises the accounting for
transfers of financial assets, such as loans and securities, and for
distinquishing between sales and secured borrowings. It is effective for some
transactions in 1997 and others in 1998. Management does not expect adoption of
this Standard to have a significant effect on the Company's financial position
or results of operations.
<PAGE>
PART I. FINANCIAL INFORMATION
Item 2. Management's Discussion and Analysis
(Dollar amounts in thousands, except per share data)
General
The business of Peoples Bank Corporation of Indianapolis ("the Company")
consists of holding and administering its interest in Peoples Bank & Trust
Company ("Peoples"). The principal business of Peoples consists of attracting
deposits from consumer and commercial customers and making loans to individuals
and businesses. Peoples offers various products for depositors including
checking and savings accounts, certificates of deposit and safe deposit boxes.
Loans consist principally of loans to individuals secured by mortgage liens on
residential properties, consumer loans generally secured by personal property
and loans to businesses generally secured by liens on business assets. Peoples
also offers trust services to individuals, businesses and institutions.
The Company operates 11 branch locations, a twelve story office in downtown
Indianapolis, and an operations center. Peoples occupies five floors of the
downtown office building and leases six floors to tenants. The top floor houses
the board room and a training area. Leased tenant space at the downtown office
remains at near capacity.
The Board of Directors of the Company approved on July 18, 1996, the repurchase,
from time to time, of 100,000 nonvoting common shares on the open market. The
Board believed that the shares had been at times undervalued in the market and
that it was in the best interest of the shareholders and the Company to effect
such share repurchases. At March 31, 1997, a total of 19,030 shares had been
repurchased at an average price of $33.82.
<PAGE>
The book value per share of Peoples nonvoting common shares at March 31, 1997,
was $29.38. For the first three months, the low trading price per share was
$35.00, and the high trading price per share was $44.50.
On March 20, 1997, Peoples declared a cash dividend in the amount of $.21 per
share, payable April 25, 1997, to shareholders of record March 31, 1997. This
dividend represents a 5% increase over the fourth quarter 1996 dividend and is
the third consecutive quarter in which Peoples has declared an increase in
dividends.
Selected ratios and summary data.
At or for the Three Months Ended
March 31,
1997 1996
------------- -------------
Assets $ 488,380 $ 412,889
Loans (includes loans held for sale) 345,055 280,947
Deposits 426,860 353,711
Shareholders Equity 46,159 42,578
Book value per share 29.38 26.78
Earnings per share $ 0.92 $ 0.82
Dividends per share $ 0.21 $ 0.18
Net Interest Margin (FTE) 4.70% 4.67%
Return on Average Assets 1.31% 1.27%
Return on Average Equity 13.36% 12.49%
Average Shares 1,571,837 1,589,992
Total Shares 1,570,962 1,589,992
Net Income
Net income for the first quarter of 1997 was $1,453 compared to $1,311 for the
first quarter of 1996, an increase of 10.83% or $142. Net income per share for
the first quarter 1997 increased $0.10 or 12.19% to $0.92 from $0.82 for the
first quarter of 1996. The increase in net income is attributable to
significantly higher net interest income and non-interest income in addition to
slower growth in non-interest expense.
Net Interest Income
Net interest income is the principal component of net income for the Company and
represents the difference between interest earned on loans and investments and
the interest cost of deposits and other borrowed funds. For the three months
ended March 31, net interest income was $4,980 and $4,312 for 1997 and 1996,
respectively. This reflects an increase of $668 or 15.49%.
Interest income for the three months ended March 31, was $8,732 and $7,652 for
1997 and 1996, respectively. Total interest expense was $3,752 and $3,340 for
the three months ended March 31, 1997, and 1996, respectively.
<PAGE>
Interest and fees on loans increased from $6,185 for the first three months of
1996 to $7,176 for that period in 1997, an increase of $991 or 16.02%. These
increases are attributable to an increase in loans outstanding. Total loans were
$280,947 at March 31, 1996, compared to $345,055 at March 31, 1997, an increase
of of $64,108 or 22.82%.
The Company's net interest margin, or margin on earning assets, increased 0.09%
from 4.43% for the first three months of 1996 to 4.52% for the first three
months of 1997. On a tax equivalent basis, the Company's net interest margin was
4.67% and 4.70%, respectively, for those periods. The increase in net interest
margin occurred at the same time that the balance sheet was growing
significantly which demonstrates that balance sheet growth was not achieved
through lower loan or higher deposit pricing.
Provision & Allowance for Loan Losses
The provision for loan losses was $400 for the first three months of 1997 as
compared to $150 for the first three months of 1996, an increase of $250 or
166.67%. The allowance for loan losses at March 31, 1997, was $4,514 or 1.31% of
total loans compared to $3,900 or 1.17% of total loans at December 31, 1996.
Gross charge-offs during the first three months of 1997 were $1 and recoveries
were $215.
The adequacy of the allowance for loan loss is evaluated at least quarterly by a
credit review officer and management based upon the review of identified loans
with more than a normal degree of risk, historical loan loss percentages, and
present and forecasted economic conditions. Management's analysis indicated that
the allowance for loan losses at March 31, 1997, was adequate to cover potential
losses on identified loans with credit problems and potential losses on the
remaining loan portfolio based on historical percentages. Peoples has made an
effort to increase the allowance through increases in the provision for loan
losses in order to increase the ratio of the allowance to total loans rather
than due to any specific decrease in credit quality.
Other Operating Income
Non-interest income totaled $1,403 for the first three months of 1997, compared
to $1,262 for that period of 1996, an increase of $141 or 11.17%. Trust fees
were $371 and $353 for the first three months of 1997 and 1996, respectively, an
increase of $18 or 5.10%.
Service charges on deposit accounts, which comprise the largest component of
non-interest income, were up for the first three months of 1997 compared with
the same periods of 1996. Service charge income was $705 for the three months
ended March 31, 1997, an increase of $175 or 33.02%, from $530 for the same
period in 1996. The increase in service charge income follows a revision of the
bank's pricing schedule during the fourth quarter of 1996 for services provided
to customers of the bank's branches. Prices were competitive in the local
market.
<PAGE>
Mortgage banking revenue includes net gains and losses realized when mortgage
loans are sold into the secondary market and service fee revenue earned from
servicing those loans after they are sold. Mortgage banking revenue for the
first three months of 1997 was $127, reflecting a decrease of $48 or 27.43%,
compared to $175 for the same period in 1996. The decrease in mortgage banking
revenue can be associated with a change in the bank's mortgage origination
strategy. During 1996, the bank reduced staff in this area by more than fifty
percent and focused its origination efforts on adjustable rate mortgage loans
which would not be sold into the secondary market. During the first quarter of
1996, the bank originated $9.3 million in loans sold into the secondary market
and $5.8 million in adjustable rate mortgages retained by the bank. During the
first quarter of 1997, the bank originated $2.4 million in loans sold into the
secondary market and $9.3 million in adjustable rate mortgages retained by the
bank.
Other operating income decreased during the first three months of 1997 to $201
from $231 for the same period in 1996, a decrease of $30 or 12.99%.
Other Operating Expenses
Total other operating expenses were $3,853 for the three months ended March 31,
1997, compared with $3,548 for that period in 1996. This represents an increase
of $305, or 8.60%. Salary and employee benefit expense was $2,130 for the first
three months of 1997, an increase of $189 or 9.74% from 1,941 for the first
three months of 1996. The increase was primarily associated with an increase in
headcount and in salary and wage rate increases.
Occupancy expense was $434 for the first three months of 1997, an increase of
$44, or 11.28% from $390 for the first three months of 1996. Equipment expenses
were $263 and $261, respectively, for the first three months of 1997 and 1996,
an increase of $2 or 0.77%.
Advertising expenses were $124 and $135, for the first three months of 1997 and
1996, respectively, a decrease of $11 or 8.15%. Other operating expenses were
$902 and $821 for the first three months of 1997 and 1996, respectively, an
increase of $81 or 9.86%.
Income Taxes
Income taxes were $677 for the first three months of 1997 and $565 for the first
three months of 1996. The increase in taxes can be primarily attributed to
increased profitability.
<PAGE>
Balance sheet
Total assets were $488,380 at March 31, 1997, and $471,478 at December 31, 1996,
an increase of $16,092. The portfolio of available-for-sale securities decreased
from $94,589 at December 31, 1996, to $91,179 at March 31, 1997, a decrease of
$3,410 or 3.61%. The decline in the portfolio was attributable to the return of
principal from available-for-sale securities in the form of amortization, calls,
maturities and sales. Total loans, excluding loans held for sale, increased
during the first three months of 1997 from $332,953 at December 31, 1996, to
$344,716 at March 31, 1997. This reflects an increase of $11,763 or 3.53%.
Commercial loans decreased $5,524 or 3.52% from $156,755 at December 31, 1996,
to $151,231 at March 31, 1997. Real estate loans, which consist of construction
loans and permanent mortgages, increased $5,785 or 5.85% from $98,891 at
December 31, 1996, to $104,676 at March 31, 1997. Consumer loans increased
$5,851 or 7.78% from $75,187 at December 31, 1996, to $81,038 at March 31, 1997.
Loans held for sale consist of conforming fixed rate mortgage loans that Peoples
sells in the secondary market (having retained servicing rights with respect to
such loans) and that are pending funding. Loans held for sale were $421 at
December 31, 1996, compared to $339 at March 31, 1997. The amount of loans
outstanding (excluding loans held for sale) are reflected in the following
table.
March 31, December 31, March 31,
1997 1996 1996
-------- -------- --------
Real Estate $104,676 $ 98,891 $105,413
Commercial 151,231 156,755 105,034
Consumer 81,038 75,187 64,840
Tax exempt 2,110 2,120 2,200
Loans to Depository Institutions 6,000 0 0
-------- -------- --------
Total Loans 345,055 332,953 277,487
Less: Allowance for Loan Losses 4,514 3,900 3,418
-------- -------- --------
Net Loans $340,541 $329,053 $274,069
======== ======== ========
Deposits represent the primary source of funds for the Company. Total deposits
increased $15,055 or 3.66%, from $411,805 at December 31,1996, to $426,860 at
March 31, 1997. Non-interest-bearing deposits decreased $8,351, or 9.95%, from
$83,911 at December 31, 1996, to $75,560 at March 31, 1997. The Company's
deposit balances are reflected in the following table.
<PAGE>
March 31, December 31, March 31,
1997 1996 1996
-------- -------- --------
Deposits:
Non-interest-bearing $ 75,560 $ 83,911 $ 62,596
Interest-bearing 351,300 327,894 291,115
-------- -------- --------
Total deposits $426,860 $411,805 $353,711
======== ======== ========
Total deposits/total assets 87.40% 87.34% 85.67%
Short-term borrowings in the form of Federal funds and repurchase agreements are
acquired, as needed, to satisfy temporary liquidity needs. Many of the funds are
from businesses with large cash balances. Though short-term in nature,
repurchase agreements have been and continue to be a stable source of funds for
Peoples. Short-term borrowings were $11,303 at March 31, 1997, as compared to
$10,266 at December 31, 1996. This represents an increase of $1,037 or 10.10%.
At March 31, 1997, all short-term borrowings were in the form of repurchase
agreements.
Total shareholders' equity increased $810 or 1.79% for the three months ended
March 31, 1997, to $46,159, from $45,349 at December 31, 1996. The increase in
shareholders' equity was the result of net income of $1,453, less dividends paid
of $329. The adoption of FAS No. 115 resulted in a $229 decrease in equity,
which was attributable to the net unrealized loss on available-for-sale
securities associated with an increase in the level of interest rates during the
quarter. Equity was also reduced by the repurchase of $85 of common stock.
Credit Quality
Nonaccrual loans are loans on which the Company no longer accrues interest.
Management places a loan on nonaccrual status when the collection of additional
interest is unlikely and the loan is not considered to be well secured and in
the process of collection. Nonperforming loans consist of loans that are on
nonaccrual status, that are 90 days or more past due as to principal or
interest, or that are restructured. If a loan is designated as a nonperforming
loan, management, as a result of delinquent status or significant concern about
the ultimate collectibility of the loan, typically ceases to recognize interest
income with respect to such loan and places it on nonaccrual status.
At March 31, 1997, Management designated $1,573 in loans as "impaired" for the
purpose of FAS No. 114. Management has further determined that all commercial
non-accrual loans will be considered as impaired.
<PAGE>
The following table shows the composition of nonperforming loans.
March 31, December 31, March 31,
1997 1996 1996
---- ---- ----
Nonperforming loans:
Total nonaccrual loans $220 $234 $438
Loans past due more than
90 days and still accruing 407 49 185
---- ---- ----
Total $627 $283 $623
==== ==== ====
Historically, commercial loans have constituted the majority of total
nonperforming loans at Peoples. At March 31, 1997, nonperforming loans were
comprised of $478 of commercial loans, $148 of real estate loans and $1 of
consumer loans. Nonperforming loans were comprised of $143 of commercial loans,
$140 of real estate loans and $0 of consumer loans at December 31, 1996. At
March 31, 1996, nonperforming loans consisted of $121 of commercial loans, $475
of real estate loans and $27 of consumer loans.
Asset quality continues to be an important area of focus for the Company.
Nonperforming loans as a percent of assets were 0.13% at March 31, 1997, and
0.06% at December 31, 1996. The Company maintains asset quality through the use
of well-defined policies, underwriting criteria, and review processes.
Capital
The Company and Peoples are required to comply with capital requirements
promulgated by their primary regulators that affect their ability to pay
dividends and that can affect their operations. Those regulations require the
maintenance of specified levels of capital to total assets (leverage ratio) and
to risk weighted assets (the risk-based capital ratios). These regulations
require the maintenance of a leverage ratio of at least 3.00% and a total
risk-based capital ratio of at least 8.00%. A financial institution's deposit
insurance assessment and, in certain circumstances, operations will be affected
by its capital level. Institutions with leverage ratios of 5.00% or more and
total risk-based capital ratios of 10.00% or more are deemed to be "well
capitalized," and accordingly, pay the lowest deposit insurance assessment and
are not subject to operational restrictions as outlined within the regulation.
<PAGE>
As of March 31, 1997, the Company's Tier I and total risk- based capital ratios
were 12.81% and 14.06%, respectively. The Company's leverage ratio was 9.43% at
March 31, 1997. As of March 31, 1997, Peoples was in excess of the minimum
capital and leverage requirements necessary to be considered a "well
capitalized" banking company as defined by Federal regulators. The Company and
Peoples were in full compliance with all regulatory capital requirements at
March 31, 1997.
The following table provides the capital ratios for the entities.
At March 31, 1997
Consolidated
Bank Only Company
Total assets $484,386 $488,380
Risked-based assets 358,270 359,750
Tier I capital 38,863 46,080
Total capital 43,342 50,577
Leverage ratio 8.13% 9.43%
Tier I risk-based capital ratio 10.85% 12.81%
Total risk-based capital ratio 12.10% 14.06%
<PAGE>
PART II. OTHER INFORMATION
Item 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
The Company's Annual Meeting of Shareholders was held April 17, 1997. The
following members were elected to the Company's Board of Directors to hold
office for a period of one year or until their successors are duly chosen and
qualified.
Votes Broker
Nominee For Withheld Abstain Non-votes
- --------------------- ------- ---------- ------- ---------
William. E. McWhirter 100,876 0 0 0
Gerald R. Francis 100,312 560 0 0
Charles R. Farber 100,876 0 0 0
Elbert L. Bradshaw 100,876 0 0 0
Robert B. Hirschman 100,876 0 0 0
David W. Knall 100,876 0 0 0
Mary Ellen Rodgers 100,312 560 0 0
Henry C. Ryder 99,008 1,864 0 0
Stephen R. West 100,312 560 0 0
At the annual meeting, the voting shareholders also ratified the Directors Stock
Option Plan with 87,656 shares voting in favor of the plan and 13,220 shares
voting against. There were no abstentions or broker non-votes.
Item 6. EXHIBITS AND REPORTS ON FORM 8-K
A. Exhibits - None to be reported.
B. Form 8-K - No reports on Form 8-K were filed during the quarter
ended March 31, 1997.
<PAGE>
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.
PEOPLES BANK CORPORATION
OF INDIANAPOLIS
By: /s/ William. E. McWhirter
--------------------------------
William E. McWhirter
Chairman and Chief Executive Officer
By: /s/ Charles R. Hageboeck
--------------------------------
Charles R. Hageboeck
Senior Vice President and Chief
Financial Officer
DATE: May 6, 1997
<TABLE> <S> <C>
<ARTICLE> 9
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
REGISTRANT'S UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS FOR THE THREE MONTHS
ENDED MARCH 31, 1997 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH
FINANCIAL STATEMENTS
</LEGEND>
<CIK> 0000796322
<NAME> Peoples Bank Corporation of Indianapolis
<MULTIPLIER> 1,000
<CURRENCY> U.S. Dollars
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-1-1997
<PERIOD-END> MAR-31-1997
<EXCHANGE-RATE> 1.000
<CASH> 21,767
<INT-BEARING-DEPOSITS> 0
<FED-FUNDS-SOLD> 19,800
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 91,179
<INVESTMENTS-CARRYING> 0
<INVESTMENTS-MARKET> 0
<LOANS> 345,055
<ALLOWANCE> 4,514
<TOTAL-ASSETS> 488,380
<DEPOSITS> 426,860
<SHORT-TERM> 11,303
<LIABILITIES-OTHER> 4,058
<LONG-TERM> 0
<COMMON> 15,640
0
0
<OTHER-SE> 30,460
<TOTAL-LIABILITIES-AND-EQUITY> 488,380
<INTEREST-LOAN> 7,176
<INTEREST-INVEST> 1,336
<INTEREST-OTHER> 220
<INTEREST-TOTAL> 8,732
<INTEREST-DEPOSIT> 3,632
<INTEREST-EXPENSE> 3,752
<INTEREST-INCOME-NET> 4,980
<LOAN-LOSSES> 400
<SECURITIES-GAINS> (1)
<EXPENSE-OTHER> 3,853
<INCOME-PRETAX> 2,130
<INCOME-PRE-EXTRAORDINARY> 2,130
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 2,130
<EPS-PRIMARY> 0.92
<EPS-DILUTED> 0.92
<YIELD-ACTUAL> 7.94
<LOANS-NON> 220
<LOANS-PAST> 407
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 13,436
<ALLOWANCE-OPEN> 3,900
<CHARGE-OFFS> 1
<RECOVERIES> 215
<ALLOWANCE-CLOSE> 4,514
<ALLOWANCE-DOMESTIC> 1,957
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 2,557
</TABLE>
