SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
(Mark One)
[X] Quarterly report pursuant to section 13 or 15(d) of the Securities
Exchange Act of 1934
For the Quarterly period ended September 30, 1996
Commission File Number 0-19181
HURON NATIONAL BANCORP, INC.
(Exact name of small business issuer as specified in its charter)
Michigan 38-2855012
(State or other jurisdiction of (IRS employer Identification No.)
incorporation or organization)
200 East Erie Street, Rogers City, Michigan 49779
(Address of principal executive offices) (Zip Code)
Telephone Number including area code: (517) 734-4734
Check whether the issuer (1) has filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act during the past 12 months (or for
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[ ]
State the number of shares outstanding of each of the issuer's classes of
common stock as of the latest practical date.
$10.00 par value of common stock 62,500 shares as of November 1, 1996
(Class) (Outstanding)
Transitional Small business Disclosure Format (check one): Yes[X] No[ ]
<PAGE>
HURON NATIONAL BANCORP, INC.
CONTENTS
Part I FINANCIAL INFORMATION
Item 1 Consolidated Balance Sheets
September 30, 1996 (unaudited) and December 31, 1995............ 2
Consolidated Statements of Income (Unaudited)
Three and nine month periods ended September 30, 1996 and 1995.. 3
Consolidated Statements of Cash Flows (Unaudited)
Nine month periods ended September 30, 1996 and 1995............ 4
Consolidated Statements of Shareholders' Equity (Unaudited)
Nine month periods ended September 30, 1996 and 1995............ 5
Notes to the Consolidated Financial Statements (Unaudited)....... 6
Item 2 Management's Discussion and Analysis of Financial Condition
and Results of Operations....................................... 8
Part II OTHER INFORMATION
Item 1 - Legal Proceedings.......................................15
Item 2 - Change in Securities....................................15
Item 3 - Defaults upon Senior Securities.........................15
Item 4 - Submission of Matters to a Vote of Securities Holders...15
Item 5 - Other Information.......................................15
Item 6 - Exhibits and Reports on Form 8-K........................15
Index to Exhibits................................................16
Signatures.......................................................17
Page 1
<PAGE>
<TABLE>
HURON NATIONAL BANCORP, INC.
CONSOLIDATED BALANCE SHEETS
<CAPTION>
(unaudited)
Sept 30, December 31,
1996 1995
<S> <C> <C>
ASSETS
Cash and due from banks $ 3,207,687 $ 2,847,727
Federal funds sold 600,000 1,000,000
Total cash and cash equivalents 3,807,687 3,847,727
Securities:
Available for Sale
U.S. Treasury 1,237,574 503,750
U.S. Agency 1,002,186 1,269,275
Held to maturity:
U.S. Agency 1,754,301 1,983,926
Tax Exempt Bonds and Notes 1,244,207 675,746
Corporate Notes 1,474,001 1,136,014
Total securities 6,712,269 5,568,711
Loans
Commercial 2,751,839 2,246,982
Real Estate 10,191,019 9,690,077
Installments 6,180,548 5,783,844
Total Loans 19,123,406 17,720,903
Allowance for loan losses (167,286) (144,100)
Net loans 18,956,120 17,576,803
Bank premises and equipment-net 430,059 421,508
Accrued interest receivable 254,711 227,277
Other assets 72,416 109,593
Total Assets 30,233,262 27,751,619
LIABILITIES AND SHAREHOLDER'S EQUITY
Liabilities
Deposits
Non interest-bearing transaction
accounts $ 3,616,453 $ 3,045,265
Interest-bearing transaction
accounts 3,551,001 3,786,097
Savings 6,405,176 6,512,733
Time 13,928,723 11,932,970
Total deposits 27,501,353 25,277,065
Accrued interest payble 64,622 55,568
Other liabilities 215,179 184,064
Total liabilities 27,781,154 25,516,697
Shareholders' Equity
Common stock, $10 par value:
100,000 shares authorized
and 62,500 outstanding 625,000 625,000
Paid in capital 625,000 625,000
Retained earnings 1,202,832 972,478
Net unrealized gain (loss) on
securities available for sale,
net of income tax (724) 12,444
Total shareholders' equity 2,452,108 2,234,922
Total liabilities and
shareholders' equity $30,233,262 $27,751,619
Page 2
<FN>
See notes to the interim consolidated financial statements.
</TABLE>
<PAGE>
<TABLE>
HURON NATIONAL BANCORP, INC.
CONSOLIDATED STATEMENTS OF INCOME (unaudited)
<CAPTION>
Three Months Ended Nine Months Ended
Sept 30, Sept 30, Sept 30, Sept 30,
<S> <C> <C> <C> <C>
Interest Income
Loans, including fees $437,912 $413,891 $1,280,426 $1,210,838
Federal funds sold 16,420 21,737 54,814 45,085
Securities available for sale:
U.S. Treasury 18,385 6,270 44,563 19,685
U.S. Government agencies 12,685 14,586 51,575 41,284
Securities held to maturity:
U.S. Government agencies 31,314 28,797 109,551 86,092
Tax exempt bonds and notes 11,570 9,147 30,489 16,083
Corporate notes 23,776 17,683 64,391 53,152
Federal reserve stock 563 563 1,687 1,687
Total interest income 552,625 512,674 1,637,496 1,473,906
Interest Expense
Deposits 273,053 232,029 796,024 636,115
Net Interest Income 279,572 280,645 841,472 837,791
Provision for loan losses 9,000 9,000 27,000 24,500
Net Interest Income after
Provision for Loan Losses 270,572 271,645 814,472 813,291
Non-Interest Income
Service charges 25,558 26,296 74,908 87,468
Other 10,467 28,120 32,722 51,295
Total non-interest income 36,025 54,416 107,630 138,763
Non-Interest Expense
Salaries and benefits 97,945 95,341 286,555 274,744
Premises and equipment 26,288 34,467 85,042 103,692
Legal and accounting fees 15,886 12,015 43,520 39,658
FDIC insurance 500 4,470 1,500 30,157
Other operating expense 52,428 47,818 169,709 170,191
Total non-interest expense 193,047 194,111 586,326 618,442
Income Before Income Tax 113,550 131,950 335,776 333,612
Provision for Income Tax 33,247 40,535 105,422 112,446
Net Income $ 80,303 $ 91,415 $ 230,354 $ 221,166
Net Income Per Share $ 1.28 $ 1.46 $ 3.69 $ 3.54
Page 3
<FN>
See notes to the interim consolidated financial statements.
</TABLE>
<PAGE>
<TABLE>
HURON NATIONAL BANCORP, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)
<CAPTION>
Nine Months Ended
Sept 30, Sept 30,
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net income $ 230,354 $ 221,166
Adjustments to reconcile net income
to net cash from operating activities
Depreciation and amortization 25,642 45,419
Net premium amortization and
discount accretion on securities 31,211 44,417
Provision for loan losses 27,000 24,500
Gains on sales of loans 15,400
Increase/(decrease) in cash
from change in assets
and liabilities:
Interest receivable (27,434) (29,648)
Other assets 36,079 22,702
Interest payable 9,054 16,322
Other liabilities 37,899 (76,824)
Net cash from operating activities 369,805 283,454
CASH FLOWS FORM INVESTING ACTIVITIES
Purchase of securities available for sale (989,086) (508,514)
Purchase of securities held to maturity (2,137,540) (3,233,471)
Proceeds from maturities/calls of securities
available for sale 500,000
Proceeds from maturities/calls of
securities held to maturity 1,433,000 3,158,000
Net increase in loans (1,406,317) (593,180)
Purchase of property and equipment (34,192) (23,458)
Net cash from financing activites (2,634,135) (1,200,623)
CASH FLOWS FROM FINANCING ACTIVITIES
Net increase/(decrease) in deposit
accounts net cash from financing activities 2,224,290 1,241,720
NET INCREASE/(DECREASE) IN CASH AND
CASH EQUIVALENTS (40,040) 324,511
CASH AND CASH EQUIVALENTS AT:
BEGINNING OF PERIOD 3,847,727 3,083,455
END OF PERIOD $3,807,687 $3,408,006
SUPPLEMENTAL DISCLOSURES OF
CASH FLOW INFORMATION
Cash paid during the period for:
Interest $ 786,970 $ 619,793
Federal income tax $ 60,625 $ 198,709
Page 4
<FN>
See notes to the interim consolidated financial statements.
</TABLE>
<PAGE>
<TABLE>
HURON NATIONAL BANCORP, INC.
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (unaudited)
For the Nine Month Periods ended September 30, 1996 and 1995
<CAPTION>
Net Unrealized
Gain/(Loss)
On Securities
Available
For Sale Total
Common Paid In Retained Net of Shareholders'
Stock Capital Earnings Income Tax Equity
<S> <C> <C> <C> <C> <C>
Balance at $625,000 $625,000 $ 744,396 $ (6,201) $1,988,195
January 1, 1995
Net income 221,166 221,166
Change in unrealized
gain (loss) on
securities available
for sale, net of tax 10,589 10,589
Balance at
September 30, 1995 $625,000 $625,000 $ 965,562 $ 4,388 $2,219,950
Balance at
January 1, 1996 $625,000 $625,000 $ 972,478 $12,444 $2,234,922
Net Income 230,354 230,354
Change in unrealized
gain (loss) on
securities available
for sale, net of tax (13,168) (13,168)
Balance at
September 30, 1996 $625,000 $525,000 $1,202,832 $ (724) $2,452,108
Page 5
<FN>
See notes to the interim consolidated financial statements.
</TABLE>
<PAGE>
HURON NATIONAL BANCORP, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (unaudited)
1. The consolidated financial statements include the accounts of the
Registrant and its wholly-owned subsidiary, Huron National Bank after
elimination of significant inter-company transactions and accounts.
The accompanying unaudited consolidated financial statements should be read
in conjunction with the notes to the consolidated financial statements
contained in the Annual Report for the year ended December 31, 1995.
2. In the opinion of management of the Registrant, the accompanying
consolidated financial statements contain all the adjustments (consisting
only of normal recurring accruals) necessary to present fairly the
consolidated financial position of the Registrant as of September 30, 1996
and December 31, 1995, and the results of operations for the nine month
periods ended September 30, 1996 and 1995.
3. During the nine month period ended September 30, 1996, there were no sales
of securities available for sale. For this period, the change in net
unrealized holding gain or loss on securities available for sale was an
unrealized gain of $19,953. There were no sales or transfers of securities
classified as held to maturity. The aggregate estimated market value of
securities held to maturity as of September 30, 1996 and December 31, 1995
was $4,413,000 and $3,856,000, respectively.
4. Management determines the adequacy of the allowance for loan losses based
on an evaluation of the loan portfolio, recent loss experience, current
economic conditions and other pertinent factors. An analysis of changes
in the allowance for loan losses follows:
Nine Months Ended Year Ended
Sept 30, December 31,
1996 1995 1995
Balance at beginning of period $144,100 $147,729 $147,729
Additions/(Deductions)
Provisions charged to operating
expense 27,000 24,500 33,500
Recoveries credited to allowance 1,155 2,871 2,921
Loans charged-off (4,969) (23,578) (40,050)
Balance at end of period $167,286 $151,522 $144,100
Loans on non-accrual status, loans past due 90 days or more and troubled
debt restructuring approximated $75,923 at September 30, 1996 and $12,955
at December 31, 1995 as shown in the following table:
Page 6
<PAGE>
Sept 30, December 31,
1996 1995 1995
Past due 90 days or more $ 0 $ 0 $ 0
Nonaccrual 39,952 37,811 3,424
Restructured 35,971 9,909 9,531
Totals $75,923 $47,720 $12,955
Loans past due ninety days or more, nonaccruals and restructured loans have
adequate levels of collateral and/or loans are guaranteed and the Bank does
not expect any significant loss. The increase in restructured loans include
five installment loans in which terms were restructured within the nine
months ending September 30, 1996.
5. The provision for income taxes represents federal income tax expense
calculated using annualized rates on taxable income generated during the
respective periods.
6. Earnings per share are computed using the weighted average number of shares
outstanding. The number of shares used in the computations of earnings and
dividends per share were 62,500 for 1996 and 1995.
7. As of September 30, 1996, the Bank had outstanding commitments to make loans
totaling $694,201 and outstanding letters of credit of $160,968.
Page 7
<PAGE>
HURON NATIONAL BANCORP, INC.
ITEM 2 MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following discussion and analysis of financial condition and results of
operations provides additional information to assess the consolidated financial
statements of the Registrant and its wholly-owned subsidary. The discussion
should be read in conjunction with those statements.
Introduction
The Bank was organized in 1980 under the laws of the United States. Located in a
rural northern Michigan area, this community bank has achieved a moderate growth
pattern consistent with maintaining a reasonable asset to capital ratio.
Summary of Financial Position
Total assets at September 30, 1996 increased from December 31, 1995 by 8.94%, or
$2,481,643. This increase primarily was the result of an increase in loans and
securities. This increase was funded mostly by an increase in non-interest
bearing transaction accounts and time certificates of deposit. The loan to
deposit ratio decreased from 70.11% at December 31, 1995 to 69.54% at
September 30, 1996 as the increase in deposits outpaced the loan increase. The
allowance for loan losses increased by $23,186 in response to the rise in loans.
During the first three quarters of 1996, the Bank has seen a migration of
balances from trnasaction and savings accounts to time deposits. Time deposits
increased by $1,995,753 as depositors are now committing funds for an extended
period of time due to a slight increase in rates. The increase in total
deposits of 8.80% or $2,224,288 from December 31, 1995 to September 30, 1996 is
also impacted by changing deposit rates and service charge pricing by
institutions in Presque Isle County.
Results of Operations
Net income for the nine months ended September 30, 1996 totaled $230,354
compared to $221,166 in 1995. The increase is primarily the result of an
increase of $163,590 in interest income, offset by an increase in interest
expense of $159,909.
The provision for loan losses for the nine months periods ended September 30,
1996 was $27,000 compared to $24,500 for the same period in 1995.
Page 8
<PAGE>
It is managemen'ts intention to provide an adequate allowance for loan losses
based on an ongoing evaluation of the loan portfolio. The slight increase in
the provision corresponds to the rise in outstanding loan balances.
Non-interest income for the nine months ended September 30, 1996 totaled
$107,630 compared to $138,763 in 1995. The decrease was primarily related to
service charges on returned checks and early redemption penalities on deposits.
Non-interest expense for the nine months ended September 30, 1996 totaled
$586,326 compared to $618,442 in 1995. There was a significant decrease of
$28,657 in FDIC insurance due to a general reduction in assessment rates, and
lesser decreases in premises and equipment and other operating expenses.
Salaries and benefits increased by $11,811 due to normal salary increases and
a rise in health insurance costs.
The effective federal income tax rate, derived by dividing Federal income tax
expense by income before taxes, was approximately 32.5% and 35.7% for the nine
month periods ended September 30, 1996 and 1995, respectively. This decrease
between periods is primarily the result of an increase in interest income which
is exempt from Federal income tax.
Analysis of Net Interest Income
The difference between interest generated by the Bank's earning assets and
interest paid on liabilities is referred to as net interest income, the most
significant component of the Bank's earnings. The following three tables
summarize the components of and the changes in net interest income. For
purposes of this analysis, tax exempt interest on loans and investments has been
increased to an amount comparable to interest subject to federal income taxes.
This taxable equivalent adjustment is based on a federal income tax rate of 34%.
Net Interest Income Nine Months Ended Sept 30,
(In Thousands) 1996 1995
Interest Income (fully taxable
equivalent basis) $ 1,654 $ 1,482
Interest Expense 796 363
Net Interest Income (fully taxable
equivalent basis) $ 858 $ 846
Increase in Net Interest Income $ 12 $ 10
Percent increase of Net Interest Income 1.40% 1.16%
Page 9
<PAGE>
The two variables that have the most significant effect on the change in the net
interest income are volume and rate. 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. Illustrated
in the two tables below, the Bank had an increase in net interest income
primarily due to loan growth with minimal changes of interest rates. The
interest income was offset by increases of interest expense where the volume in
certificates of deposits grew significantly and provided the primary source for
funding of loan growth and purchase of securities. Overall, net interest income
did not significantly change compared to the prior nine month period ended
September 30, 1995.
Change in Net Interest Income 1996 Over 1995
(in thousands) Change Due to:
Interest Income Volume Rate Total
Loans $ 60 $ 10 $ 70
Taxable investment securities 67 2 69
Nontaxable investment securities
(fully taxable equivalent basis) 28 (5) 23
Federal funds sold 14 (4) 10
Total Interest Income 169 3 172
Interest Expense
Interest bearing DDA (1) 0 (1)
Savings (3) 0 (3)
Time deposits 124 40 164
Total Interest Expense 120 40 160
Net Interest Income $ 49 $ (37) $ 12
Page 10
<PAGE>
The table below summarizes the Bank's average balances, interest income/expense,
interest rates and net yield on earning assets. The net yield on earning assets
employs an effective cost of funds by recognizing interest-free liabilities and
shareholders' equity which fund earning assets, and is computed by dividing net
interest income by interest earning assets.
Interest Rate Spread and Net Nine Months Ended September 30,
Yield on Earning Assets 1996 1995
(in thousands) Average Average
Balance Interest Rate Balance Interest Rate
Assets
Loans $18,179 $1,280 8.42% $17,331 $1,212 9.34%
Taxable investment securities 5,750 270 6.28% 4,316 200 6.20%
Nontaxable investment securities
(fully taxable equivalent basis) 915 47 6.86% 388 24 8.40%
Federal funds sold 1,386 55 5.29% 1,045 45 5.77%
Other 38 2 5.94% 37 1 5.94%
Total Interest Earning Assets 26,268 1,654 8.42% 23,117 1,482 8.57%
Liabilities
Interest bearing DDA's $ 4,059 91 2.99% $ 4,121 92 2.99%
Savings 6,304 130 2.75% 6,466 133 2.75%
Time deposits 13,310 575 5.78% 10,374 411 5.30%
Total Interest Bearing
Liabilities 23,673 796 4.50% 20,961 636 4.06%
DDA's 3,193 2,782
Other liabilities 262 238
Shareholders' equity 2,330 2,104
Total Liabilities & Equity $29,458 $26,085
Net Interest Income $ 858 $ 846
Net Yield on Interest Earning Assets 4.37% 4.89%
Net Interest Spread 3.92% 4.51%
Interest earning assets/interest
bearing liabilities 1.11% 1.10%
Average balances for loans include non-accrual loans. The inclusion of non-
accrual loans does not have a material effect on either the average balance or
the average interest income.
Page 11
<PAGE>
Capital Management
Huron National Bank believes that a strong capital position is paramount to its
continued profitability and continued depositor and investor confidence. It
also provides Huron National Bank flexibility to take advantage of growth
opportunities and to accommodate larger Bank loan customers. Regulators have
established "risk-based" capital guidelines for banks and bank holding
companies. Because of the Corporation's and Bank's size, regulatory capital
requirements apply only to the Bank.
Under the guidelines, minimum capital levels are established for risk based and
total assets. For the risk based computation, the ratio is based on the
perceived risk in asset categories and certain off-balance-sheet items, such as
standby letters of credit. The guidelines define Tier 1 capital and Tier 2
capital. Tier 1 capital includes common shareholders' equity, while Tier 2
capital adds the allowance for loan losses. Tier 1 capital cannot exceed Tier 2
capital. Banks are required to have ratios of Tier 1 capital to risk weighted
assets of 4% and total capital (Tier 1 plus Tier 2) of 8%. At September 30,
1996 Huron National Bank had capital ratios well above the minimum regulatory
guidelines.
The following table compares Huron National Bank's capital ratios at
September 30, 1996 with regulatory capital guidelines:
Tier 1 Tier 1 Total Risk-based
Capital to Capital to Capital to
Total Risk-weighted Risk-weighted
Assets Assets Assets
Capital balances at
September 30, 1996 $ 2,435,000 $ 2,435,000 $ 2,602,000
Total and Risk weighted assets
at September 30, 1996 $30,400,000 $17,960,000 $17,960,000
Capital ratios at
September 30, 1996 8.01% 13.56% 14.49%
"Adequately Capitalized"
regulatory level at
September 30, 1996 3.00% 4.00% 8.00%
Page 12
<PAGE>
Liquidity and Interest Rate Sensitivity
The Bank's principal asset/liability management objectives include the
maintenance of adequate liquidity and appropriate interest rate sensitivity
while maximizing net interest income.
The Bank's primary sources of short-term liquidity are short-term investments
and the ability to raise money through federal funds purchased. Longer term
sources of liquidity are through longer term investment security maturities and
loan repayments, as well as through normal deposit growth and negotiable
certificates of deposit. The primary source of funds for the parent company
is the upstream of dividends from the Bank.
Management believes that the sources of liquidity are sufficient for the Bank
and parent company to continue with their current business plans.
As previously noted, interest income and interest expense are also dependent on
changing interest rates. The relative impact of changing interest rates on the
net interest income depends on the rate sensitivity to such changes. Rate
sensitivity generally depends on maturity structures, call provisions, repayment
penalties etc. of the respective financial instruments. The Bank's exposure or
sensitivity to changing interest rates is measured by the ratio of rate-
sensitive assets to rate-sensitive liabilities. The Bank feels that its rate
sensitive position is adequate in a normal interest rate movement environment.
Gap Analysis
The following talbe reflects how Management has matched assets to liabilities
that mature or have the ability to reprice as of September 30, 1996:
0-90 Days 91-180 Days 181-365 Days 1 - 3 Yrs. 3 Yrs. + Total
Assets
Loans $1,381,126 $ 923,033 $ 864,224 $4,150,897 $11,763,129 $19,082,409
Invest. 849,023 876,856 763,249 3,159,103 1,064,039 6,712,270
Federal
Funds 600,000 0 0 0 0 600,000
Total 2,830,149 1,799,889 1,627,473 7,310,000 12,827,168 26,394,679
Liabilities
Interest-bearing
transaction
accts. 3,551,001 0 0 0 0 3,551,001
Savings 6,405,176 0 0 0 0 6,405,176
Certificates of
Dep. 4,492,823 3,661,260 1,152,638 2,090,612 2,514,998 13,912,331
Total 14,449,000 3,661,260 1,152,638 2,090,612 2,514,998 23,868,508
Asset(liabilities)
GAP ($11,618,851)($ 1,861,371) $ 474,835 $5,219,388 $10,312,170 $ 2,526,171
Cumulative
GAP ($11,618,851)($13,480,222)($13,005,387)($7,785,999) $ 2,526,171
Page 13
<PAGE>
Not included in the totals are non-accrual loans of $39,952 and matured
certificates of deposit of $16,384.
The Bank's cumulative 1 year GAP position ahs increased from ($12,191,032) at
December 31, 1995 to ($13,005,387) at September 30, 1996 primarily due to the
increase in certificates of deposits maturing within one year and the purchase
of securities with maturities greater than one year.
Management believes that the GAP overstates true interest sensitivity. Interest
exposure is not as significant as expressed in the above schedule as rates on
interest-bearing transaction and savings accounts may not reprice on an "instant
basis". Management believes liabilities do not need to be repriced as soon as
rates begin to move which gives them a "lag time" in the market from the time
assets reprice.
Page 14
<PAGE>
ITEM 1 - Legal Proceedings
The Corporation is not involved in any material legal proceedings. The
Corporation's sole subsidiary, Huron National Bank (the "Bank"), is involved in
ordinary routine litigation incident to its business; however, no such
proceedings are expected to result in any material adverse effect on the
operations or earnings of the Bank. Neither the Bank nor the Corporation is
involved in any proceedings to which any director, principal officer, affiliate
thereof, or person who owns of record or beneficially five percent (5%) or more
of the outstanding stock of the Corporation of the Bank, or any associate of the
Bank.
ITEM 2 - Changes in Securities
No changes in securities relevant to the requirements of this section occurred
during the nine months ended September 30, 1996.
ITEM 3 - Defaults Upon Senior Securities
There have been no defaults upon senior securities relevant to the requirements
of this section during the nine months ended September 30, 1996.
ITEM 4 - Submission of Matters To A Vote of Security Holders
There were no submission of matters to vote during the quarter ended
September 30, 1996.
ITEM 5 - Other Information
No other information to report during the nine months ended September 30, 1996.
ITEM 6 - Exhibits and Reports on Form 8-K
1. Exhibits required by Item 601 of Regulation S-K. See Index to Exhibits on
page 16.
2. Reports on Form 8-K. No reports on Form 8-K were filed for the nine months
ended September 30, 1996.
Page 15
<PAGE>
The following exhibits are filed or incorporated by reference as part of this
report:
2 Plan of Acquisition, Reorganization, Arrangement, Liquidation
or Succession - Consolidation Agreement included in Amendment
No. 1 to Form S-4 Registration Statement No. 33-33874,
Dated May 8, 1990.
27 Financial Data Schedule - attached. Pages 18 and 19.
Page 16
<PAGE>
SIGNATURES
In accordance the requirements of the Exchange Act, the Registrant caused this
report to be signed on its behalf by the undersigned, thereunto duly authorized.
HURON NATIONAL BANCORP, INC.
Registrant
Dated: November 8, 1996 Michael L. Cahoon
President and Chief Executive Officer
Dated: November 8, 1996 Paulette D. Kierzek
Chief Financial Officer
Page 17
<TABLE> <S> <C>
<ARTICLE> 9
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> SEP-30-1996
<CASH> 3,807,687
<INT-BEARING-DEPOSITS> 0
<FED-FUNDS-SOLD> 0
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 2,239,760
<INVESTMENTS-CARRYING> 4,472,509
<INVESTMENTS-MARKET> 4,472,509
<LOANS> 19,123,406
<ALLOWANCE> 167,286
<TOTAL-ASSETS> 30,233,262
<DEPOSITS> 27,501,353
<SHORT-TERM> 0
<LIABILITIES-OTHER> 279,801
<LONG-TERM> 0
0
0
<COMMON> 625,000
<OTHER-SE> 1,827,108
<TOTAL-LIABILITIES-AND-EQUITY> 2,452,108
<INTEREST-LOAN> 1,280,426
<INTEREST-INVEST> 300,569
<INTEREST-OTHER> 56,501
<INTEREST-TOTAL> 1,637,496
<INTEREST-DEPOSIT> 796,024
<INTEREST-EXPENSE> 796,024
<INTEREST-INCOME-NET> 841,472
<LOAN-LOSSES> 27,000
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 586,326
<INCOME-PRETAX> 335,776
<INCOME-PRE-EXTRAORDINARY> 335,776
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 230,354
<EPS-PRIMARY> 3.69
<EPS-DILUTED> 3.69
<YIELD-ACTUAL> 4.37
<LOANS-NON> 39,952
<LOANS-PAST> 0
<LOANS-TROUBLED> 35,971
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 144,100
<CHARGE-OFFS> 4,969
<RECOVERIES> 1,155
<ALLOWANCE-CLOSE> 167,286
<ALLOWANCE-DOMESTIC> 68,904
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 92,382
</TABLE>
