<PAGE> 1
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
[ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 1995
OR
[ ] 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 33-16366
SUMMIT BANK CORPORATION
(Exact name of Registrant as specified in its charter)
GEORGIA 58-1722476
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
4360 Chamblee-Dunwoody Road
Atlanta, Georgia 30341
(Address of principal executive offices, including Zip Code)
(770) 454-0400
(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.
Yes X No
----- -----
APPLICABLE ONLY TO CORPORATE ISSUERS:
Indicate the number of shares outstanding of each of the issuer's
classes of capital stock, as of the latest practicable date.
Class Outstanding at November 10, 1995
----- --------------------------------
Common Stock. $.01 par value 1,407,688
The Exhibit Index Appears on Page 13
PAGE 1 OF 15
<PAGE> 2
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
SUMMIT BANK CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)
<TABLE>
<CAPTION>
September 30, December 31,
(in thousands) 1995 1994
- -----------------------------------------------------------------------------------------------------------
<S> <C> <C>
ASSETS
Cash and due from banks $ 7,184 $ 6,458
Federal funds sold 2,885 3,370
Interest-bearing deposits in other banks 53 44
Investment securities available for sale, at fair value 14,715 5,680
Investment securities to be held to maturity, fair value of
$24,336 and $13,239 in 1995 and 1994, respectively 24,100 13,594
Loans, net of unearned income 69,543 72,297
Loans held for sale 3,880 2,032
Less: allowance for loan losses (1,802) (1,603)
- -----------------------------------------------------------------------------------------------------------
Net loans 71,621 72,726
- -----------------------------------------------------------------------------------------------------------
Premises and equipment, net 2,893 2,500
Customers' acceptances 2,839 1,952
Other real estate -- --
Deferred tax assets 639 429
Other assets 1,793 1,393
- -----------------------------------------------------------------------------------------------------------
Total assets $128,722 $108,146
===========================================================================================================
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES:
Deposits
Noninterest-bearing demand $ 21,940 $ 20,057
Interest Bearing:
Demand 29,757 21,799
Savings 10,331 7,768
Time, $100,000 and over 22,492 21,512
Other time 24,172 19,503
- -----------------------------------------------------------------------------------------------------------
Total deposits 108,692 90,639
Obligations under capital lease 160 166
Acceptances outstanding 2,839 1,952
Other liabilities 2,694 2,116
- -----------------------------------------------------------------------------------------------------------
Total liabilities 114,385 94,873
- -----------------------------------------------------------------------------------------------------------
STOCKHOLDERS' EQUITY:
Common stock 14 14
Additional paid-in capital 12,123 12,123
Retained earnings 2,143 1,232
Net unrealized holding gains (losses) on investment securities
available for sale 57 (96)
- -----------------------------------------------------------------------------------------------------------
Total stockholders' equity 14,337 13,273
- -----------------------------------------------------------------------------------------------------------
Total liabilities and stockholders' equity $128,722 $108,146
===========================================================================================================
</TABLE>
See Accompanying Notes to Consolidated Financial Statements
PAGE 2 OF 15
<PAGE> 3
SUMMIT BANK CORPORATION AND SUBSIDIARIES
CONSOLIDATED INCOME STATEMENTS
(Unaudited)
<TABLE>
<CAPTION>
Three months Nine months
ended September 30, ended September 30,
-------------------- -------------------
(in thousands, except share and per share data) 1995 1994 1995 1994
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Interest Income:
Loans, including fees $2,012 $2,005 $6,006 $5,423
Interest-bearing deposits in other banks 1 -- 3 2
Federal funds sold 73 32 269 104
Investment securities-taxable 309 143 740 435
Mortgage-backed securities 320 128 745 288
- --------------------------------------------------------------------------------------------------------------
Total interest income 2,715 2,308 7,763 6,252
- --------------------------------------------------------------------------------------------------------------
Interest expense:
Time deposits, $100,000 and over 209 165 829 485
Other deposits 867 553 2,138 1,623
Short-term borrowings and obligations
under capital lease 5 (6) 14 11
- --------------------------------------------------------------------------------------------------------------
Total interest expense 1,081 712 2,981 2,119
- --------------------------------------------------------------------------------------------------------------
Net interest income 1,634 1,596 4,782 4,133
Provision for loan losses 55 15 382 265
- --------------------------------------------------------------------------------------------------------------
Net interest income after provision
for loan losses 1,579 1,581 4,400 3,868
- --------------------------------------------------------------------------------------------------------------
Other income:
Fees for international banking services 270 244 832 652
Service charge income 53 64 165 173
Overdraft and NSF charges 98 52 264 151
Gains on sales of loans 71 321 246 698
Other operating income 91 74 231 290
Net (losses) gains on sales of investment securities -- (11) (21) 36
- --------------------------------------------------------------------------------------------------------------
Total other income 583 744 1,717 2,000
- --------------------------------------------------------------------------------------------------------------
Other expenses:
Salaries and employee benefits 736 633 2,129 1,825
Equipment 99 90 294 289
Occupancy 111 111 309 310
Other operating expenses 471 451 1,481 1,337
- --------------------------------------------------------------------------------------------------------------
Total other expenses 1,417 1,285 4,213 3,761
- --------------------------------------------------------------------------------------------------------------
Income before income taxes 745 1,040 1,904 2,107
- --------------------------------------------------------------------------------------------------------------
Income tax expense 275 307 697 635
- --------------------------------------------------------------------------------------------------------------
Net income $ 470 $ 733 $1,207 $1,472
- --------------------------------------------------------------------------------------------------------------
Primary net income per share of common stock $ .30 $ .52 $ .78 $ 1.05
- --------------------------------------------------------------------------------------------------------------
Weighted average common and common
equivalent shares outstanding 1,641,575 1,407,688 1,641,575 1,407,688
Dividends declared per common share $ .07 $ -- $ .21 $ --
==============================================================================================================
</TABLE>
See Accompanying Notes to Consolidated Financial Statements
PAGE 3 OF 15
<PAGE> 4
SUMMIT BANK CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
<TABLE>
<CAPTION>
Nine months
ended September 30,
----------------------
(in thousands) 1995 1994
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C>
Cash flows from operating activities:
Net income $ 1,207 $ 1,472
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization of leasehold improvements 158 95
Deferred tax benefits (299) --
Net amortization of premiums/discounts on
investment securities 57 112
Amortization of negative goodwill (82) (57)
Provision for loan losses 382 265
Gains on sales of loans (246) (698)
Proceeds from sales of loans 4,145 14,119
Net losses (gains) on sales of investment securities 21 (36)
Provision for losses on sales of other real estate -- 62
Gains from the sale of other real estate -- (77)
Changes in other assets and liabilities:
Increase in other assets (400) (59)
Increase (decrease) in other liabilities 660 (260)
- ---------------------------------------------------------------------------------------------------------
Net cash provided by operating activities 5,603 14,938
- ---------------------------------------------------------------------------------------------------------
Cash flows from investing activities:
Proceeds from maturities of investment securities available for sale 1,259 1,265
Proceeds from maturities of investment securities held to maturity 7,000 --
Proceeds from sales of investment securities available for sale 972 3,549
Purchases of investment securities available for sale (11,037) (2,307)
Purchases of investment securities held to maturity (19,401) (5,172)
Principal collections on investment securities held to maturity 1,830 2,404
Proceeds from sales of other real estate -- 1,141
Loans made to customers, net of principal collected on loans (3,176) (14,928)
Purchases of premises and equipment (551) (1,357)
- ---------------------------------------------------------------------------------------------------------
Net cash used in investing activities (23,104) (15,405)
- ---------------------------------------------------------------------------------------------------------
Cash flows from financing activities:
Net increase in demand and savings deposits 12,404 8,967
Net increase (decrease) in time deposits 5,649 (3,699)
Principal payments for obligations under capital lease (22) --
Increase in borrowings under capital lease 16 --
Dividends paid (296) --
Net decrease in short-term borrowings -- (750)
- ---------------------------------------------------------------------------------------------------------
Net cash provided by financing activities 17,751 4,518
- ---------------------------------------------------------------------------------------------------------
Net increase in cash and cash equivalents 250 4,051
Cash and cash equivalents at beginning of period 9,872 7,361
- ---------------------------------------------------------------------------------------------------------
Cash and cash equivalents at end of period $ 10,122 $ 11,412
=========================================================================================================
Supplemental disclosures of cash paid during the period:
Interest $ 2,745 $ 2,211
Income taxes $ 1,000 $ 137
=========================================================================================================
</TABLE>
See Accompanying Notes to Consolidated Financial Statements
PAGE 4 OF 15
<PAGE> 5
SUMMIT BANK CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
1. BASIS OF PRESENTATION
The financial statements included herein have been prepared by Summit
Bank Corporation (the "Company"), without audit, pursuant to the rules
and regulations of the Securities and Exchange Commission. Certain
information and footnote disclosures included herein normally included
in financial statements prepared in accordance with generally accepted
accounting principles have been omitted, although the Company believes
that the disclosures included herein are adequate to make the
information presented not misleading. In the opinion of management,
the information furnished in the consolidated financial statements
reflects all adjustments necessary to present fairly the Company's
financial position, results of operations and cash flows for such
interim periods. Management believes that all interim period
adjustments are of a normal recurring nature. These financial
statements should be read in conjunction with the Company's audited
financial statements and the notes thereto as of December 31, 1994,
included in the Company's Annual Report on Form 10-K for the fiscal
year ended Decem- ber 31, 1994.
The consolidated financial statements include the accounts of the
Company and its wholly-owned subsidiaries, The Summit National Bank
(Bank) and The Summit Merchant Banking Corporation. All intercompany
accounts and transactions have been eliminated in consolidation.
2. ACCOUNTING POLICIES
Reference is made to the accounting policies of the Company described
in the notes to consolidated financial statements contained in the
Company's Annual Report on Form 10-K for the year ended December 31,
1994.
In May 1993, the Financial Accounting Standards Board ("FASB") issued
SFAS No. 114, "Accounting by Creditors for Impairment of a Loan."
SFAS No. 114 requires impaired loans to be measured based on the
present value of expected future cash flows, discounted at the loan's
effective interest rate, or at the loan's observable market price, or
the fair value of the collateral if the loan is collateral dependent,
beginning in 1995. In October 1994, the FASB issued SFAS No. 118,
"Accounting by Creditors for Impairment of a Loan-Income Recognition
and Disclosures," which amends the requirements of SFAS No. 114
regarding interest income recognition and related disclosure
requirements. Initial adoption of SFAS No. 114 and SFAS No. 118 must
be reflected prospectively. The Company adopted SFAS No. 114 and SFAS
No. 118 on January 1, 1995, and the impact to the consolidated
financial statements was not material. At September 30, 1995,
pursuant to the definition within SFAS No. 114, the Company had
approximately $143,000 of impaired loans, which are also classified as
nonaccrual, and have a related allowance for loan losses aggregating
$143,000.
3. RECLASSIFICATIONS
Certain 1994 amounts have been reclassified for comparative purposes
in order to conform the prior period to the 1995 presentation.
PAGE 5 OF 15
<PAGE> 6
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
For the three months and nine months ended September 30, 1995 and 1994
Performance Overview
Summit Bank Corporation (the "Company") reported net income of $470,000 for the
third quarter of 1995, a decline from $733,000 for the same period last year.
For the nine month period ended September 30, 1995 net income was $1,207,000,
down 18% or $265,000 from $1,472,000 for the comparable period in 1994. The
decline is attributed to lower gains from SBA sales and a higher income tax
rate due to expiring net operating loss carryforwards for State of Georgia
taxes. Net earnings per share for the third quarter of 1995 were $.30 as
compared to $.52 for the same period last year. For the nine month period, net
earnings per share were $.78 as compared to $1.05 in 1994. The 1995 earnings
per share results also reflect dilution due to outstanding stock warrants and
options which were not dilutive in 1994. The Company's return on average
assets was 1.37% for the nine months ended September 30, 1995.
Net interest income for the third quarter of 1995 was relatively flat at $1.6
million as compared to the third quarter last year. However, for the nine
month period net interest income increased to $4.8 million, up 16% from $4.1
million in 1994. This increase was attributed to both a higher volume of
earning assets and a stronger interest margin. Interest income on investment
securities rose sharply due to the significant increase in the volume of
securities. For the nine month period of 1995 the Company's net interest
margin was 6.15% compared to 5.54% for the same period in 1994.
Total assets of the Company increased to $128.7 million, an increase of over
19% from December 31, 1994. Asset growth was fueled by deposits which have
grown 19.9% from year end 1994 to $108.7 million. Noninterest bearing deposits
increased 9.4% from year end to $21.9 million while interest bearing demand and
savings deposits increased $8 million and $2.6 million respectively. Time
deposits over $100,000 increased only $1 million while other time deposits
posted an increase of $4.7 million for the nine month period reflecting the
decline in the Company's dependency on large volatile deposits. Loan
outstandings have been lower throughout the nine month period of 1995 compared
to 1994. However, the third quarter loan volume increased raising outstandings
to $71.6 million reflecting a 1.5% decline in net loan outstandings as compared
to year end 1994. The decline in loan volumes is considered temporary by
management as indicated by increases reflected in third quarter 1995. The
investment securities portfolio increased $19.6 million, or 101% since year end
1994. The excess funds generated from both deposit growth and lower volumes
were placed in adjustable rate mortgage-backed securities to maintain minimal
market value fluctuation thereby positioning the Bank to be able to liquidate
these securities to fund anticipated loan growth. Customer acceptances
outstanding have increased 45% to $2.8 million, reflecting the improvement in
international trade finance fees.
Net loan outstandings were $71.6 million at September 30, 1995 which reflected
improvement from the second and first quarter 1995 volumes of $69.6 million and
$68.6 million respectively. The Company experienced a temporary downturn in
loan volumes during the first part of 1995 due to lower SBA loan originations
coupled with payoffs of certain larger credits. During the quarter ended
September 1995, loan volumes did increase and the current volume of loans in
process indicates that this trend should continue. The lower volume of SBA
loans is considered temporary as several of these loans are
construction/permanent type financings which are nearing the final construction
phase. The Company's loan-to-deposit ratio stands at 68% at September 30,
1995 while the reserve for loan losses represents 2.45% of total loans.
PAGE 6 OF 15
<PAGE> 7
The provision for loan losses for the nine months ended September 30, 1995 was
$382,000, an increase of $117,000 over the $265,000 recorded for the same
period last year. Despite the higher provision during the nine month period of
1995 versus 1994, the overall level of classified assets declined significantly
during the third quarter. The provision for third quarter 1995 represented
only 14% of the total provision for the year. Other income declined $161,000
to $583,000 for the third quarter of 1995, as compared to $744,000 for the same
period last year. For the nine month period other income declined to $1.7
million in 1995 from $2.0 million last year. The primary reason for this
decline, and the overall decline in net income, is lower gains from the sale of
loans. For the quarter, gains totaled $71,000 compared to $321,000 for the
third quarter last year. For the nine month comparison, net gains from the
sale of loans were $246,000 in 1995 and $698,000 in 1994. Offsetting this
decline, fees for international banking services increased 10.7%, or $26,000,
to $270,000 in the third quarter 1995 as compared to the same period last year.
For the nine month period ended September 30, 1995 these fees totaled $832,000
an increase of $180,000, or 27.6% over the comparable period last year. Fees
from overdrafts and insufficient funds charges also increased $46,000 to
$98,000 in the third quarter of 1995 as compared to $52,000 in the third
quarter of 1994. For the nine month period these fees also reflected similar
increases to $264,000 in 1995 compared to $151,000 last year. The Company also
recognized a net loss on the sale of investment securities of $21,000 during
the nine months of 1995 compared to a net gain of $36,000 during 1994, a net
decline in other income of $57,000.
Other expenses for the third quarter of 1995 were $1.4 million, an increase of
$132,000 compared to the third quarter of last year. For the nine month period
other expenses increased $452,000 to $4.2 million representing a 12% increase
over the comparable period in 1994. Personnel expenses accounted for the
majority of the increase, $103,000 for the comparable quarters and $304,000 for
the comparable nine month periods. A large portion of the increase in
personnel expenses was attributed to overtime and temporary expenses associated
with a data processing conversion implemented during the second quarter of
1995. Other operating expenses for the third quarter of 1995 were up slightly
compared to last year, $471,000 versus $451,000 while the comparable nine month
periods also reflected an increase in 1995 to $1.5 million as compared to $1.4
million in 1994, an increase of $144,000. Data/Item processing expenses were
the largest cause of the increase during the nine month period, $74,000, while
postage/courier and property/business taxes also accounted for $32,000 and
$31,000 of the increase respectively. Other miscellaneous expenses also
increased $44,000 during the nine month period ended September 30, 1995 as
compared to the same period last year. Offsetting these increases, FDIC
insurance premiums declined $45,000 in the nine month period of 1995 as
compared to 1994 as a result of a refund and a lower insurance rate on insured
deposits. Currently the premium is $0.4 per $100 of deposits compared to the
prior rate of $.23 per $100. However, the FDIC can raise deposit insurance
premiums at any time thereby increasing the Company's cost of funds. There can
be no assurance that such cost could be passed on to the Company's customers.
The Company's net operating loss carryforward for State of Georgia taxes was
fully utilized during 1995 which resulted in a higher effective tax rate of
36.6% of pretax income in 1995 compared to 30.1% last year.
Asset Quality
Non-performing assets decreased to $143,000 at September 30, 1995 compared to
$274,000 at year end 1994. Non-performing assets represented .19% of total
loans and other real estate as of September 30 compared to .37% at December 31,
1994. The Company had no loans 90 days or more past due at September 30, 1995.
PAGE 7 OF 15
<PAGE> 8
<TABLE>
NONPERFORMING ASSETS
--------------------
<CAPTION>
September 30, December 31,
($ in thousands) 1995 1994
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Loans on nonaccrual $143 $244
Other real estate -- --
Restructured loans -- 30
- -------------------------------------------------------------------------------------------------------------
Total non-performing assets $143 $274
=============================================================================================================
Loans 90 days past due $ -- $ --
Total nonperforming assets as a
percentage of total loans and ORE .19% .37%
Loans ninety days past due as a
percentage of total loans --% --%
</TABLE>
The allowance for loan losses increased from $1,603,000 at year end 1994 to
$1,802,000 at September 30, 1995, an increase of 12.4%. Gross chargeoffs of
$684,000, offset by recoveries of $501,000, resulted in a net annualized
chargeoff rate of .34% of average total loans compared to .80% for the entire
year 1994. The allowance for loan losses represented 2.45% of total loans
outstanding at September 30, 1995.
ANALYSIS OF THE ALLOWANCE FOR LOAN LOSSES AT SEPTEMBER 30, 1995
<TABLE>
<S> <C>
($ in thousands)
- --------------------------------------------------------------------------------------
Allowance for loan losses at December 31, 1994 $1,603
- --------------------------------------------------------------------------------------
Charge-offs:
Commercial 189
Real estate 453
Installment 42
- --------------------------------------------------------------------------------------
Total 684
- --------------------------------------------------------------------------------------
Recoveries:
Commercial 422
Real estate 6
Installment 73
- --------------------------------------------------------------------------------------
Total 501
- --------------------------------------------------------------------------------------
Net charge-offs 183
- --------------------------------------------------------------------------------------
Provision charged to income 382
- --------------------------------------------------------------------------------------
Allowance for loan losses at September 30, 1995 $1,802
======================================================================================
</TABLE>
PAGE 8 OF 15
<PAGE> 9
The loan portfolio is periodically reviewed to evaluate the outstanding loans
and to measure both the performance of the portfolio and the adequacy of the
allowance for loan losses. This analysis includes a review of delinquency
trends, actual losses and internal credit ratings. Based on this analysis
management considers the allowance for loan losses at September 30, 1995 to be
adequate to cover possible loan losses in the portfolio as of that date.
However, because of the inherent uncertainty of assumptions made during the
evaluation process, there can be no assurance that loan losses in future
periods will not exceed the allowance for loan losses or that additional
allocations to the allowance will not be required.
Liquidity and Capital Adequacy
Liquidity has continued to improve significantly throughout 1995 as a result of
the growth in deposits and the level loan volumes. At September 30, 1995, the
Company's net loan to deposit rate was 65.9%, down from 80.2% at year end. The
Bank's liquid assets as a percent of total deposits was 50% at September 30,
1995. Management also analyzes the level of off-balance sheet assets such as
unfunded loan commitments and outstanding letters of credit as they relate to
the levels of cash, cash equivalents, liquid investments and available federal
funds lines to ensure that no potential shortfall exists. Based on this
analysis, management believes that the Company has adequate liquidity to meet
short-term operation requirements.
Stockholders' equity of the Company increased $1,064,000 to $14.3 million at
September 30, 1995, an increase of 8% from December 31, 1994. The capital
levels of the Company and the Bank exceeds all prescribed regulatory capital
guidelines. Regulations require that most highly rated national banks maintain
a minimum Tier 1 leverage ratio of 3%, and require other banks to maintain a
minimum Tier 1 leverage ratio of 3% plus an additional cushion of at least 1 to
2 percentage points. Tier 1 capital consists of common stockholders' equity
less certain intangibles. The Bank's Tier 1 leverage ratio was 9.7% at
September 30, 1995 compared to 10.5% at year end 1994 as a result of asset
growth. Regulations require that the Bank maintain a minimum total risk
weighted capital ratio of 8% with 50%, or 4%, of this amount made up of Tier 1
capital. Risk weighted assets consist of balance sheet assets adjusted by risk
category and off-balance sheet asset equivalents similarly adjusted. At
September 30, 1995, the Bank had a risk weighted total capital ratio of 15.7%
compared to 15.3% at year end 1994, and a Tier 1 risk weighted capital ratio of
14.4% compared to 14.0% at year end 1994.
PAGE 9 OF 15
<PAGE> 10
PART II - OTHER INFORMATION
Item 1. Legal Proceedings - Not Applicable
Item 2. Changes in Securities - Not Applicable
Item 3. Defaults Upon Senior Securities - Not Applicable
Item 4. Submission of Matters to a Vote of Security Holders. - Not applicable.
Item 5. Other Information - Not Applicable
PAGE 10 OF 15
<PAGE> 11
Item 6. Exhibits and Reports on Form 8-K
a) Exhibits
Exhibit 11.1
Statement Regarding Computation of per share earnings
Exhibit 27.1
Financial Data Schedule (for SEC use only)
b) Reports on Form 8-K - none
PAGE 11 OF 15
<PAGE> 12
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this Report to be signed by the undersigned,
thereunto duly authorized.
SUMMIT BANK CORPORATION
BY: /s/ David Yu
---------------------------------
David Yu
President and Chief Executive Officer
BY: /s/ Gary McClung
-------------------------------
Gary K. McClung
Executive Vice President
(Principal Financial Officer
and Principal Accounting Officer)
DATE: November 10, 1995
PAGE 12 OF 15
<PAGE> 13
INDEX TO EXHIBITS
<TABLE>
<CAPTION>
Exhibit Page
- ------- ----
<S> <C> <C>
11.1 Statement Regarding Computation of Per Share Earnings 14
27.1 Financial Data Schedule (for SEC use only) 15
</TABLE>
PAGE 13 OF 15
<PAGE> 1
Exhibit 11.1
STATEMENT REGARDING COMPUTATION
OF PER SHARE EARNINGS
<TABLE>
<CAPTION>
Statement Regarding Computation of Three months Nine months
Per Share Earnings ended September 30, ended September 30,
- --------------------------------------- ------------------- -------------------
1995 1994 1995 1994
<S> <C> <C> <C> <C>
Earnings per share:
Weighted average shares outstanding 1,407,688 1,407,688 1,407,688 1,407,688
Net income per share $ .33 $ .52 $.86 $ 1.05
Primary earnings per share:
Weighted average shares outstanding 1,407,688 1,407,688 1,407,688 1,407,688
Dilutive warrants 473,000 -- 473,000 --
Dilutive stock options 42,425 -- 42,425 --
Repurchased under treasury stock
method(1) (281,538) -- (281,538) --
---------- ---------- ---------- ----------
1,641,575 1,407,688 1,641,575 1,407,688
Net income $ 470,000 $ 733,000 $1,207,000 $1,472,000
Imputed interest income under the
treasury stock method (net of tax) 21,755 -- 67,661 --
Net income per share $ .30 $ .52 $ .78 $ 1.05
</TABLE>
(1) Dilutive warrants and options calculated up to 20% of total shares
outstanding in the applicable periods.
PAGE 14 OF 15
<TABLE> <S> <C>
<ARTICLE> 9
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
SEPTEMBER 30, 1995 10-Q FINANCIAL STATEMENTS AND IS QUALIFIED IN ITS ENTIRETY BY
REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> SEP-30-1995
<CASH> 7,184
<INT-BEARING-DEPOSITS> 53
<FED-FUNDS-SOLD> 2,885
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 14,715
<INVESTMENTS-CARRYING> 24,100
<INVESTMENTS-MARKET> 24,336
<LOANS> 73,423
<ALLOWANCE> (1,802)
<TOTAL-ASSETS> 128,722
<DEPOSITS> 108,692
<SHORT-TERM> 0
<LIABILITIES-OTHER> 2,694
<LONG-TERM> 0
<COMMON> 14
0
0
<OTHER-SE> 14,323
<TOTAL-LIABILITIES-AND-EQUITY> 128,722
<INTEREST-LOAN> 6,006
<INTEREST-INVEST> 1,754
<INTEREST-OTHER> 3
<INTEREST-TOTAL> 7,763
<INTEREST-DEPOSIT> 2,967
<INTEREST-EXPENSE> 2,981
<INTEREST-INCOME-NET> 4,782
<LOAN-LOSSES> 382
<SECURITIES-GAINS> (21)
<EXPENSE-OTHER> 4,213
<INCOME-PRETAX> 1,904
<INCOME-PRE-EXTRAORDINARY> 1,904
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,207
<EPS-PRIMARY> .78
<EPS-DILUTED> .78
<YIELD-ACTUAL> 6.11
<LOANS-NON> 143
<LOANS-PAST> 0
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 1,603
<CHARGE-OFFS> 684
<RECOVERIES> 501
<ALLOWANCE-CLOSE> 1,802
<ALLOWANCE-DOMESTIC> 0
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
