<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 March 31, 1996
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: 0-18415
---------------------------------------------------------
IBT Bancorp, Inc.
- --------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
Michigan 38-2830092
- --------------------------------------------------------------------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) identification No.)
200 East Broadway Mt. Pleasant 48858
- --------------------------------------------------------------------------------
(Address of principal executive offices) (Zip code)
(517) 772-9471
- --------------------------------------------------------------------------------
(Registrant's telephone number, including area code)
N/A
- --------------------------------------------------------------------------------
(Former name, former address and former fiscal year, if changed since last
report)
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
APPLICABLE ONLY TO CORPORATE ISSUERS:
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date.
Common Stock $6 par value, 776,276 as of March 31, 1996
--------------------------------------------------------
<PAGE> 2
IBT BANCORP, INC.
Index to Form 10-Q
Part I Financial Information Page Number
Item 1 Financial Statements 3
Item 2 Management's Discussion and
Analysis of Financial Condition
and Results of Operations 7
Part II Other Information
Item 6 Exhibits and Reports on Form 8-K 14
2
<PAGE> 3
PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
- -----------------------------------------
IBT BANCORP, INC.
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
<TABLE>
<CAPTION>
(in thousands) March 31 December 31
1996 1995
---- ----
(Unaudited)
<S> <C> <C>
ASSETS
Cash and demand deposits due from banks................................... $ 11,412 $ 15,299
Federal funds sold........................................................ 2,800 6,400
------------- -------------
TOTAL CASH AND CASH EQUIVALENTS 14,212 21,699
Investment securities: (Note 3)
Securities available for sale.......................................... 61,000 56,621
Securities held to maturity (Market value --
$9,425 in 1996 and $9,059 in 1995) 9,470 8,985
------------- -------------
TOTAL INVESTMENT SECURITIES 70,470 65,606
Loans:
Commercial and agricultural............................................ 33,628 33,585
Real estate mortgage................................................... 118,464 115,718
Installment............................................................ 37,044 36,693
------------- -------------
TOTAL LOANS 189,136 185,996
Less allowance for loan losses............................................ 2,390 2,248
------------- -------------
NET LOANS 186,746 183,748
Other assets.............................................................. 10,681 10,452
------------- -------------
TOTAL ASSETS $ 282,109 $ 281,505
============= =============
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits:
Noninterest bearing.................................................... $ 31,777 $ 39,620
NOW accounts........................................................... 40,849 39,883
Certificates of deposit and other savings.............................. 169,501 163,642
Certificates of deposit over $100,000.................................. 10,467 9,860
------------- -------------
TOTAL DEPOSITS 252,594 253,005
Accrued interest and other liabilities.................................... 3,375 2,695
------------- -------------
TOTAL LIABILITIES 255,969 255,700
Shareholders' Equity:
Common stock -- $6 par value........................................... 4,657 4,220
4,000,000 authorized; outstanding--
776,276 in 1996 (703,248 in 1995)
Capital surplus........................................................ 12,982 10,220
Retained earnings...................................................... 8,387 10,856
Unrealized gain on securities available for
sale - net of taxes of $58,000 in 1996 and
$236,000 in 1995....................................................... 114 509
------------- -------------
TOTAL SHAREHOLDERS' EQUITY 26,140 25,805
------------- -------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 282,109 $ 281,505
============= =============
</TABLE>
See notes to consolidated financial statements
3
<PAGE> 4
IBT BANCORP, INC.
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
<TABLE>
<CAPTION>
Three Months Ended
(in thousands) March 31
1996 1995
---- ----
<S> <C> <C>
INTEREST INCOME
Interest and fees on loans................................................ $4,160 $3,727
Interest on investment securities:
Taxable.................................................................. 780 625
Nontaxable............................................................... 222 230
------ ------
TOTAL INTEREST ON INVESTMENT SECURITIES 1,002 855
Interest on fed funds sold................................................ 102 98
------ ------
Total interest income 5,264 4,680
INTEREST ON DEPOSITS........................................................ 2,460 2,082
------ ------
NET INTEREST INCOME 2,804 2,598
Provision for loan losses................................................... 117 113
------ ------
NET INTEREST INCOME AFTER
PROVISION FOR LOAN LOSSES 2,687 2,485
OTHER INCOME
Trust Department income................................................... 78 87
Service charges on deposit accounts....................................... 72 70
Other service charges and fees............................................ 256 231
Other..................................................................... 98 61
Loss on the sale of securities
available for sale...................................................... (3)
------ ------
TOTAL OTHER INCOME 504 446
OPERATING EXPENSES
Salaries, wages and employee benefits..................................... 1,132 1,067
Net occupancy expense..................................................... 152 148
Furniture and equipment expense........................................... 244 207
Other..................................................................... 555 677
------ ------
TOTAL OPERATING EXPENSE 2,083 2,099
INCOME BEFORE FEDERAL INCOME TAX 1,108 832
Federal income tax.......................................................... 296 198
------ ------
NET INCOME $ 812 $ 634
====== ======
Net income per share $ 1.05 $ 0.83
====== ======
Cash dividends $ 0.24 $ 0.22
====== ======
</TABLE>
See notes to consolidated financial statements.
4
<PAGE> 5
IBT BANCORP, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
(in thousands)
<TABLE>
<CAPTION>
Three Months Ended
March 31
1996 1995
---- ----
<S> <C> <C>
OPERATING ACTIVITIES
Interest and fees collected on loans
and investments........................................................................ $5,079 $4,567
Other fees and income received.......................................................... 670 434
Interest paid........................................................................... (2,359) (1,967)
Cash paid to suppliers and employees.................................................... (1,351) (2,351)
Income taxes paid....................................................................... (9)
------ ------
NET CASH PROVIDED BY OPERATING ACTIVITIES 2,030 683
INVESTING ACTIVITIES
Proceeds from maturities and sale of investment
securities available for sale......................................................... 6,420 10,080
Proceeds from maturities of investment
securities held to maturity........................................................... 215 246
Purchase of investment securities
available for sale.................................................................... (11,147) (5,684)
Purchase of investment securities
held to maturity...................................................................... (1,018)
Net increase in loans................................................................... (3,115) (1,437)
Purchases of equipment and premises..................................................... (379) (132)
------ -----
NET CASH PROVIDED (USED) IN INVESTING ACTIVITIES (9,024) 2,893
FINANCING ACTIVITIES
Net decrease in non-interest bearing deposits........................................... (7,844) (5,099)
Net increase (decrease) in interest bearing deposits.................................... 7,433 (1,621)
Cash dividends.......................................................................... (191) (167)
Sale of common stock.................................................................... 109 90
------ -----
NET CASH USED BY FINANCING ACTIVITIES (493) (6,797)
------ ------
DECREASE IN CASH AND CASH EQUIVALENTS (7,487) (3,221)
Cash and cash equivalents at beginning of year $ 21,699 $ 18,010
-------- --------
CASH AND CASH EQUIVALENTS AT PERIOD END $ 14,212 $ 14,789
======== ========
</TABLE>
See notes to consolidated financial statements
5
<PAGE> 6
IBT BANCORP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
NOTE 1 BASIS OF PRESENTATION
The accompanying unaudited condensed consolidated financial statements have
been prepared in accordance with generally accepted accounting principles for
interim financial information and with the instructions to form 10-Q and
Article 10 of Regulation S-X. Accordingly, they do not include all of the
information and footnotes required by generally accepted accounting principles
for complete financial statements. In the opinion of management, all
adjustments (consisting of normal recurring accruals) considered necessary for
a fair presentation have been included. Operating results for the three month
period ended March 31, 1996 are not necessarily indicative of the results that
may be expected for the year ended December 31, 1996. For further information,
refer to the consolidated financial statements and footnotes thereto included
in the Corporation's annual report for the year ended December 31, 1995.
NOTE 2 COMPUTATION OF EARNINGS PER SHARE
The net income per share amounts are based on the weighted average number of
common shares outstanding. The weighted number of common shares outstanding,
as adjusted for the 10% stock dividend paid in March 1996, were 773,767 as of
March 31, 1996 and 763,957 as of March 31, 1995.
NOTE 3 ADOPTION OF SFAS NO. 122
The Corporation adopted Statement of Financial Accounting Standard ("SFAS") No.
122, "Accounting for Mortgage Servicing Rights," an amendment of SFAS Statement
No. 65 on January 1, 1996. This statement changed the accounting for mortgage
servicing rights retained by the loan originator. Under this standard, if the
originator sells mortgage loans and retains the related servicing rights, the
total cost of the mortgage loan is allocated between the loan (without
servicing rights) and the servicing rights, based on their relative fair
values. The cost allocated to mortgage servicing rights must be evaluated
periodically for impairment. The adoption of SFAS No. 122 did not have a
material impact on the Corporation's consolidated financial statements.
6
<PAGE> 7
ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
- --------------------------------------------------------------------------------
The following is management's discussion and analysis of the major factors
that influenced IBT Bancorp's financial performance. This analysis should be
used in conjunction with the Corporation's 1995 annual report and with the
unaudited financial statements and notes, as set forth on pages 3 through 6 of
this report.
THREE MONTHS ENDING MARCH 31, 1996 AND 1995
RESULTS OF OPERATIONS
Net income equaled $812,000 as of March 31, 1996, compared to $634,000 for
the same period in 1995, a 28.1% increase. Return on average assets, which
measures the ability of the Corporation to profitably and efficiently employ
its resources, equaled 1.15% during the first quarter of 1996 compared to 0.97%
in 1995. Return on average equity, which indicates how effectively the
Corporation is able to generate earnings on shareholder invested capital,
equaled 12.62% through March 31, 1996 versus 10.76% through March 31, 1995..
SUMMARY OF SELECTED FINANCIAL DATA
- --------------------------------------------
(Dollars in thousands except per share data)
<TABLE>
March 31
--------------------
1996 1995
-------------------------
<S> <C> <C>
INCOME STATEMENT DATA:
Net interest income $2,804 $2,598
Provision for loan losses 117 113
Net income 812 634
PER SHARE DATA:
Net income per common share $ 1.05 $ .83
Cash dividend per common share 0.24 0.22
RATIOS:
Average primary capital to average assets 9.87% 9.77%
Net income to average assets 1.15 0.97
Net income to average equity 12.62 10.76
</TABLE>
NET INTEREST INCOME
Net interest income equals interest income less interest expense and is the
primary source of income for IBT Bancorp. In accordance with SFAS No. 91,
"Accounting for Loan Fees," interest income includes loan fees of $162,000 in
1996 versus $108,000 in 1995. For analytical purposes, net interest income is
adjusted to a "taxable equivalent" basis by adding the income tax savings from
interest on tax-exempt loans and securities, thus making year-to-year
comparisons more meaningful.
(continued on page 11)
7
<PAGE> 8
TABLE 1
IBT BANCORP, INC.
AVERAGE BALANCES; INTEREST RATE AND NET INTEREST INCOME
- -------------------------------------------------------
(Dollars in Thousands)
The following schedules present the daily average amount outstanding for
each major category of interest earning assets, nonearning assets, interest
bearing liabilities, and noninterest bearing liabilities. This schedule also
presents an analysis of interest income and interest expense for the periods
indicated. All interest income is reported on a fully taxable equivalent (FTE)
basis using a 34% tax rate. Nonaccruing loans, for the purpose of the
following computations, are included in the average loan amounts outstanding.
<TABLE>
<CAPTION>
Three Months Ending
March 31, 1996 March 31, 1995
Tax Average Tax Average
Average Equivalent Yield/ Average Equivalent Yield/
Balance Interest Rate Balance Interest Rate
------- -------- ---- ------- -------- ----
<S> <C> <C> <C> <C> <C> <C>
INTEREST EARNING ASSETS:
Loans $187,031 $4,186 8.95 % $174,404 $3,753 8.61 %
Taxable investment securities 50,582 775 6.13 43,203 621 5.75
Nontaxable investment securities 17,397 336 7.73 17,414 348 7.99
Federal funds sold 7,781 102 5.24 6,674 98 5.87
Other 336 5 5.95 336 5 5.95
-------- ------ ----- -------- ------ ----
Total Earning Assets 263,127 5,404 8.22 % 242,031 4,825 7.97 %
NONEARNING ASSETS:
Allowance for loan losses (2,320) (2,153)
Cash and due from banks 9,951 11,199
Premises and equipment 5,235 5,143
Accrued income and other assets 5,947 4,936
-------- --------
Total Assets $281,940 $261,156
======== ========
INTEREST BEARING LIABILITIES:
Interest bearing demand deposits 41,388 293 2.83 % 46,380 337 2.91 %
Savings deposits 69,165 546 3.16 60,378 433 2.87
Time deposits 109,773 1,621 5.91 96,029 1,313 5.47
-------- ------ ---- -------- ------ -----
Total Interest Bearing Liabilities 220,326 2,460 4.47 % 202,787 2,083 4.11 %
NONINTEREST BEARING LIABILITIES
AND SHAREHOLDERS' EQUITY:
Demand deposits 32,794 32,239
Other 3,075 2,560
Shareholders' equity 25,745 23,570
-------- --------
Total Liabilities and Equity $281,940 $261,156
======== ========
Net interest income (FTE) $2,944 $2,742
====== ======
Net yield on interest earning assets (FTE) 4.48 % 4.53 %
====== ======
</TABLE>
8
<PAGE> 9
TABLE 2
IBT BANCORP, INC.
VOLUME AND RATE VARIANCE ANALYSIS
- ---------------------------------
(Dollars in Thousands)
The following tables set forth the effect of volume and rate changes on
interest income and expense for the periods indicated. For the purpose of this
table, changes in interest due to volume and rate were determined as follows:
Volume Variance - change in volume multiplied by the previous year's rate.
Rate Variance - change in the fully taxable equivalent (FTE) rate
multiplied by the prior year's volume.
The change in interest due to both volume and rate has been allocated to
volume and rate changes in proportion to the relationship of the absolute
dollar amounts of the change in each.
<TABLE>
<CAPTION>
Quarter Ended March 31, 1996
Compared to
March 31, 1995
Increase (Decrease) Due to
-------------------------------
Volume Rate Net
------ ---- ----
<S> <C> <C> <C>
CHANGES IN INTEREST INCOME:
Loans $ 279 $ 154 $ 433
Taxable investment securities 111 43 154
Nontaxable investment securities 0 (12) (12)
Federal funds sold 15 (11) 4
Other investments 0 0 0
------- ------ ------
Total changes in interest income 405 174 579
Total changes in interest expense 229 148 377
------- ------ ------
Net Change in Interest Margin (FTE) $ 176 $ 26 $ 202
======= ====== ======
</TABLE>
9
<PAGE> 10
TABLE 3
IBT BANCORP, INC.
SUMMARY OF LOAN LOSS EXPERIENCE
- -------------------------------
(Dollars in Thousands)
<TABLE>
<CAPTION>
Year to Date
March 31
------------------
1996 1995
---- ----
<S> <C> <C>
Summary of changes in allowance:
Allowance for loan losses - January 1 $ 2,248 $ 2,083
Loans charged off (28) (101)
Recoveries of charged off loans 53 77
-------- --------
Net loans (charged off) recoveries 25 (24)
Provision charged to operations 117 113
-------- --------
Allowance for loan losses - March 31 $ 2,390 $ 2,172
======== ========
Allowance to loan losses as a % of loans 1.26% 1.24%
===== =====
<CAPTION>
NONPERFORMING LOANS
- -------------------
(Dollars in thousands)
March 31
1996 1995
---- ----
<S> <C> <C>
Total amount of loans outstanding for
the period (net of unearned interest) $ 189,136 $ 175,351
========= =========
Nonaccrual loans $ 136 $ 1,078
Accruing loans past due 90 days or more 601 351
Restructured loans 0 0
--------- ---------
Total $ 737 $ 1,429
========= =========
Loans classified as nonperforming to
outstanding loans 0.39% 0.81%
===== =====
</TABLE>
There are, to management's knowledge, no other loans which cause
management to have serious doubts as to the ability of a borrower to comply
with their loan repayment terms.
10
<PAGE> 11
NET INTEREST INCOME (CONTINUED)
As shown in Tables number 1 and 2, when comparing the three month period ending
March 31, 1996 to the same period in 1995, fully taxable equivalent (FTE) net
interest income increased $202,000 or 7.4%. An increase of 8.7% in average
interest earning assets provided $405,000 of FTE interest income. The majority
of this growth was funded by an 8.6% increase in interest bearing deposits,
resulting in $229,000 of additional interest expense. Overall, changes in
volume resulted in $176,000 of additional FTE interest income. The average FTE
interest rate earned on assets increased by 0.25%, increasing FTE interest
income by $174,000 and the average rate paid on deposits increased by 0.36%,
increasing interest expense by $148,000. The net result of increased interest
rate earned and paid increased FTE net interest income by $26,000.
The Corporation's FTE net interest yield as a percentage of average earning
assets equaled 4.48% during the first three months of 1996 versus 4.53% for the
same period in 1995. The 0.06% decline in the net interest yield was primarily
a result of a shift in deposits from lower rate demand deposits to savings and
certificate of deposits.
PROVISION FOR LOAN LOSSES
The viability of any financial institution is ultimately determined by its
management of credit risk. Loans outstanding represent 67% of the
Corporation's total assets and is the Corporation's single largest
concentration of risk. The allowance for loan losses is management's
estimation of potential future losses inherent in the existing loan portfolio.
Factors used to evaluate the loan portfolio, and thus to determine the current
charge to expense, include recent loan loss history, financial condition of
borrowers, amount of nonperforming loans, and overall economic conditions.
Comparing the year to date period of March 31, 1996 to March 31, 1995 average
loans outstanding increased 7.2%. The provision for loan losses was increased
3.5% to $117,000 in the first quarter of 1996 when compared to the same period
in 1995. The increase in the provision is due to an increase in net loans
outstanding. As set forth in Table 3, loans classified as nonperforming were
$737,000 as of March 31, 1996, a $692,000 decrease from the prior year. The
allowance for loan losses as a percentage of loans equaled 1.26% compared to
1.24% for the same period in 1995. In management's opinion, the allowance for
loan losses is adequate as of March 31, 1996.
NONINTEREST INCOME
Noninterest income consists of trust fees, deposit service charges, fees for
other financial services, and gains and losses from the sale of securities
classified as available for sale. The income earned from these sources
increased $58,000 for the three month period ending March 31, 1996, compared to
the same period in 1995. The most significant changes were an $24,000 increase
in ATM fees, a $9,000 increase in brokerage commissions, a $21,000 increase in
gains on the sale of residential real estate mortgages, and a $9,000 decrease
in trust income.
11
<PAGE> 12
NONINTEREST INCOME, CONTINUED
The Corporation has established a policy that all 30 year amortized fixed rate
mortgage loans will be sold. These loans are accounted for according to SFAS
122, (see Note 3 on page 6 for further information) and are sold without
recourse. The Corporation retains the servicing of these loans. The
calculation of gains on the sale of mortgages exclude at least 25 basis points
for the servicing of these loans. Included in other operating income is a
$25,000 gain from the sale of $3.1 million in mortgages during the first
quarter of 1996 versus a $4,000 gain from the sale of $238,000 in the same
period in 1995.
NONINTEREST EXPENSE
Noninterest expense decreased $16,000 or 6.0% for the first three months of
1996 when compared to the same period in 1995. The largest component of
noninterest expense is salaries and employee benefits, which increased $65,000
or 6.1%. The majority of this increase is related to increased staffing and
normal merit and promotional salary increases. Occupancy and furniture and
equipment expenses increased $27,000 or 9.0% in 1996. The majority of this
increase was associated with automatic teller machine operating costs and
computer operations. Other noninterest expenses decreased $122,000, an 18.0%
decrease. The most significant change was a $131,000 decrease in FDIC
premiums.
CHANGES IN FINANCIAL POSITION
Since December 31, 1995, total assets increased $604,000 to $282.1 million.
During the first quarter of 1996, major changes in asset mix include a $7.5
million decrease in cash and cash equivalents, a $4.9 million increase in
investment securities, and a $3.1 million increase in net loans. Interest
bearing deposits increased $7.4 million and noninterest-bearing deposits
decreased $7.8 million.
LIQUIDITY
Liquidity management is designed to have adequate resources available to meet
depositor and borrower discretionary demands for funds. Liquidity is also
required to fund expanding operations, investment opportunities, and payment of
cash dividends. The primary sources of the Corporation's liquidity are cash,
cash equivalents, and investment securities available for sale.
As of March 31, 1996, cash and cash equivalents as a percentage of total assets
equaled 5.0%, versus 7.7% as of December 31, 1995. During the first three
months of 1996, $2.0 million in net cash was provided from operations,
investing activities used $9.0 million, and financing activities used $493,000.
The accumulated effect of the Corporation's operating, investing, and
financing activities was a $7.5 million decrease in cash and cash equivalents
during the first three months of 1996.
In addition to cash and cash equivalents, investment securities available for
sale are another source of liquidity. Securities available for sale equaled
$61.0 million as of March 31, 1996 and $56.6 million as of December 31, 1995.
The Corporation's liquidity is considered adequate by the management of the
Corporation.
12
<PAGE> 13
CAPITAL
The capital of the Corporation consists solely of common stock, surplus,
retained earnings, and unrealized gain on securities available for sale and
increased $335,000 since December 31, 1995.
There are no commitments for significant capital expenditures; however, there
are regulatory constraints placed on the Corporation's capital. The Federal
Reserve Board's current recommended minimum tier 1 and tier 2 capital to
average assets requirement is 6.0%. The Corporation's tier 1 and tier 2
capital to average assets, which consists of shareholder's equity plus the
allowance for loan losses, was 10.0% at March 31, 1996.
The Federal Reserve Board has established a minimum risk based capital
standard. Under this standard, a framework has been established that assigns
risk weights to each category of on- and off-balance sheet items to arrive at
risk adjusted total assets. Regulatory capital is divided by the risk adjusted
assets with the resulting ratio compared to the minimum standard to determine
whether a bank has adequate capital. The minimum standard is 8%, of which at
least 4% must consist of equity capital net of goodwill. The following table
sets forth the percentages required under the Risk Based Capital guidelines and
the Corporation's ratios as of March 31, 1996:
PERCENTAGE OF CAPITAL TO RISK ADJUSTED ASSETS:
<TABLE>
<CAPTION>
IBT Bancorp
Required 03/31/96
-------- --------
<S> <C> <C>
Equity Capital 4.00 16.08
Secondary Capital* 4.00 1.25
------ -----
Total Capital 8.00 17.21
====== =====
</TABLE>
* IBT Bancorp's secondary capital consists solely of the allowance for
loan losses. The percentage for the secondary capital under the required
column is the maximum allowed from all sources.
13
<PAGE> 14
PART II - OTHER INFORMATION
Item 6 EXHIBITS AND REPORTS ON FORM 8-K
(a) Not Applicable
(b) No reports on Form 8-K were filed or required to be filed
during the quarter ended March 31, 1996.
14
<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.
IBT Bancorp, Inc.
-----------------------------
Date: May 2, 1996 /s/ David W. Hole
--------------------- ---------------------------------------------
David W. Hole, President/CEO
/s/ Dennis P. Angner
---------------------------------------------
Dennis P. Angner, Chief Financial Officer
15
<PAGE> 16
Exhibit Index
-------------
<TABLE>
<CAPTION>
Exhibit No. Description
- ----------- -----------
<S> <C>
27 Financial Data Schedule
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 9
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> MAR-31-1996
<CASH> 11,412
<INT-BEARING-DEPOSITS> 0
<FED-FUNDS-SOLD> 2,800
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 61,000
<INVESTMENTS-CARRYING> 9,470
<INVESTMENTS-MARKET> 9,425
<LOANS> 189,136
<ALLOWANCE> 2,390
<TOTAL-ASSETS> 282,109
<DEPOSITS> 252,594
<SHORT-TERM> 0
<LIABILITIES-OTHER> 3,375
<LONG-TERM> 0
0
0
<COMMON> 4,657
<OTHER-SE> 21,483
<TOTAL-LIABILITIES-AND-EQUITY> 282,109
<INTEREST-LOAN> 4,160
<INTEREST-INVEST> 1,002
<INTEREST-OTHER> 102
<INTEREST-TOTAL> 5,264
<INTEREST-DEPOSIT> 2,460
<INTEREST-EXPENSE> 2,460
<INTEREST-INCOME-NET> 2,804
<LOAN-LOSSES> 117
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 2,083
<INCOME-PRETAX> 1,108
<INCOME-PRE-EXTRAORDINARY> 812
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 812
<EPS-PRIMARY> 1.05
<EPS-DILUTED> 1.05
<YIELD-ACTUAL> 4.48
<LOANS-NON> 136
<LOANS-PAST> 601
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 2,248
<CHARGE-OFFS> 28
<RECOVERIES> 53
<ALLOWANCE-CLOSE> 2,390
<ALLOWANCE-DOMESTIC> 2,390
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
