[TEXT]
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
---------------------------
FORM 10-QSB
(Mark One)
X QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 1997.
OR
TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
Commission File No. 000-22517
COMMUNITY BANCSHARES, INC.
(Exact name of small business issuer as specified in its charter)
North Carolina 56-1693841
(State of Incorporation) (I.R.S. Employer Identification No.)
1600 Curtis Bridge Road Wilkesboro, North Carolina 28679
(Address of Principal Executive Offices)
(910) 838-4100
(Issuer's Telephone Number, Including Area Code)
Not Applicable
(Former Name, Former Address and Former Fiscal Year, if Changed
Since Last Report)
Check whether the issuer (1) 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
issuer 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 common equity
as of the latest practicable date.
Common stock, $3.00 par value per share 1,296,356 shares
issued and outstanding as of August 13, 1997.
Transitional Small Business Disclosure Format (Check one):
Yes No X
(Page 1 of 16)
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
COMMUNITY BANCSHARES, INC.
Wilkesboro, North Carolina
Consolidated Balance Sheets
ASSETS
June 30, December 31,
1997 1996
(Unaudited) (Unaudited)
Cash and due from banks $ 1,680,859 $ 1,763,882
Federal funds sold 550,000 2,450,000
Total cash and cash equivalents $ 2,230,859 $ 4,213,882
Securities:
Available-for-sale,
at estimated market values 12,150,540 11,302,580
Held-to-maturity (Estimated market
values of $4,435,098 (06-30-97)
and $5,399,611 (12-31-96) 4,440,598 5,414,836
Loans, net 62,217,845 52,786,698
Property and equipment 585,222 218,857
Other assets 1,314,619 778,515
Total Assets $82,939,683 $74,715,368
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Deposits
Non-interest bearing deposits $ 4,563,195 $ 5,090,509
Interest bearing deposits 67,686,356 59,364,668
Total deposits $72,249,551 $64,455,177
Other liabilities 942,888 924,292
Total Liabilities $73,192,439 $65,379,469
Commitments & Contingencies
Shareholders' Equity:
Common stock - $3.00 par value,
10 million shares authorized;
1,296,356 (06-30-97) and 1,284,386
(12-31-96) shares issued
and outstanding $ 3,889,068 $ 3,853,158
Paid-in-capital 5,378,223 5,312,078
Retained earnings 476,856 163,259
Unrealized gain on
securities available-for-sale 3,097 7,404
Total Shareholders' Equity $ 9,747,244 $ 9,335,899
Total Liabilities
and Shareholders' Equity $82,939,683 $74,715,368
Refer to notes to the consolidated financial statements.
COMMUNITY BANCSHARES, INC.
Wilkesboro, North Carolina
Income Statements
(Unaudited)
For the six months
ended June 30,
1997 1996
Interest income $3,416,896 $2,343,585
Interest expense 1,693,734 1,290,621
Net interest income $1,723,162 $1,052,964
Provision for possible loan losses 275,000 82,500
Net interest income (loss) after
provision for possible loan losses $1,448,162 $ 970,464
Other income:
Service fees and other charges $ 72,185 $ 58,291
Gain (loss) on sale of securities (4,618) 1,089
Total Other Income $ 67,567 $ 59,380
Operating expenses:
Salaries and benefits $ 492,006 $ 399,621
Legal and professional 53,849 26,530
Depreciation 25,481 31,852
Amortization 5,807 12,035
Courier and postage 28,791 31,190
Rent expense 39,416 42,108
Data processing 64,057 50,777
Regulatory assessments 25,347 35,900
Other operating expenses 183,757 193,236
Total Expenses $ 918,511 $ 823,249
Income before taxes
and extraordinary item $ 597,218 $ 206,595
Income tax 283,620 76,388
Net Income $ 313,598 $ 130,207
Income per share $ .21 $ .12
Refer to notes to the consolidated financial statements.
COMMUNITY BANCSHARES, INC.
Wilkesboro, North Carolina
Income Statements
(Unaudited)
For the three months
ended June 30,
1997 1996
Interest income $1,778,196 $1,217,249
Interest expense 878,419 644,153
Net interest income $ 899,777 $ 573,096
Provision for possible loan losses 150,000 45,000
Net interest income after
provision for possible loan losses $ 749,777 $ 528,096
Other income:
Service fees and other charges $ 36,732 $ 24,251
Gain on sale of securities (5,261) 5,586
Total other income $ 31,471 $ 29,837
Operating expenses:
Salaries and benefits $ 258,976 $ 209,086
Legal and professional 35,528 12,104
Depreciation 13,061 16,447
Amortization 2,136 6,018
Courier and postage 15,246 17,425
Rent expense 19,218 20,243
Data processing 32,897 26,389
Regulatory assessments 11,674 16,925
Other operating expenses 84,067 92,172
Total Expenses $ 472,803 $ 416,809
Income before taxes $ 308,445 $ 141,124
Income tax 155,000 52,750
Net Income $ 153,445 $ 88,374
Income per share $ .10 $ .08
Refer to notes to the consolidated financial statements.
COMMUNITY BANCSHARES, INC.
Wilkesboro, North Carolina
Statements of Cash Flows
(Unaudited)
Six months ended
June 30,
1997 1996
Cash flows from operating activities: $ (394,176) $ 167,867
Cash flows from investing activities
Purchase of equipment (391,846) (41,716)
(Increase) in loans, net (9,706,147) (8,233,231)
Securities, available-for-sale
Sale of securities 2,051,632 1,616,300
Purchase of securities (2,918,028) (2,768,638)
Maturities and pay-downs 504,875 463,106
Securities, held-to-maturity
Purchase of securities - - (275,591)
Maturities and pay-downs 974,238 1,908,031
Net cash used in investing activities $(9,485,276) $(7,331,739)
Cash flows from financing activities
Increase in repurchase agreements $ - - $ 741,666
Increase in deposits 7,794,374 4,292,881
Proceeds from sale and
exercise of warrants/options 102,055 1,528,810
Net cash provided from financing activities $ 7,896,429 $ 6,563,357
Net (decrease) in cash and cash equivalents $(1,983,023) $ (600,515)
Cash and cash equivalents
at beginning of period 4,213,882 1,949,186
Cash and cash equivalents at end of period $ 2,230,859 $ 1,348,671
Refer to notes to the consolidated financial statements.
COMMUNITY BANCSHARES, INC.
Wilkesboro, North Carolina
Notes to Consolidated Financial Statements (Unaudited)
June 30, 1997
Note 1 - Basis of Presentation
The accompanying financial statements have been prepared in
accordance with generally accepted accounting principles for
interim financial information and with the instructions to Form 10-
QSB. Accordingly, they do not include all 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 six-month period ended June 30, 1997 are not
necessarily indicative of the results that may be expected for the
year ending December 31, 1997. For further information, refer to
the financial statements and footnotes thereto included in Form 10-
KSB for the year ended December 31, 1996.
Note 2 - Summary of Organization
Community Bancshares, Inc., Wilkesboro, North Carolina (the
"Company"), was incorporated under the laws of the State of North
Carolina on June 11, 1990, for the purpose of becoming a bank
holding company with respect to a proposed national bank, Wilkes
National Bank (the "Bank"), located in Wilkesboro, North Carolina.
Upon commencement of the Bank's planned principal operations on
January 17, 1992, the Company acquired 100 percent of the voting
stock of the Bank by injecting $3,750,000 into the Bank's capital
accounts.
As of June 30, 1997 and December 31, 1996, there were
1,296,356 and 1,284,386 shares of common stock outstanding,
respectively.
The Company offered warrants to its organizers and to a group
of initial subscribers. Each warrant, when surrendered with $5.50
to the Company, is convertible into one share of common stock. The
warrants expire ten years from January 17, 1992. At June 30, 1997
and December 31, 1996, there were 383,464 and 385,114 warrants
outstanding, respectively.
Note 3 - Summary of Significant Accounting Policies
Basis of Presentation and Reclassification. The consolidated
financial statements include the accounts of the Company and the
Bank. All significant intercompany accounts and transactions have
COMMUNITY BANCSHARES, INC.
Wilkesboro, North Carolina
Notes to Consolidated Financial Statements (Unaudited)
June 30, 1997
been eliminated in consolidation. Certain prior year amounts have
been reclassified to conform to the current year presentation.
Basis of Accounting. The accounting and reporting policies of
the Company conform to generally accepted accounting principles and
to general practices in the banking industry. The Company uses the
accrual basis of accounting by recognizing revenues when earned and
expenses when incurred, without regarding the time of receipt or
payment of cash.
Investment Securities. The Company adopted Statement of
Financial Accounting Standards No. 115, "Accounting for Certain
Investment in Debt and Equity Securities" ("SFAS 115") on January
1, 1994. SFAS 115 requires investments in equity and debt
securities to be classified into three categories:
1. Held-to-maturity securities: These are securities which
the Company has the ability and intent to hold until
maturity. These securities are stated at cost, adjusted
for amortization of premiums and the accretion of
discounts.
2. Trading securities: These are securities which are
bought and held principally for the purpose of selling
in the near future. Trading securities are reported at
fair market value, and related unrealized gains and
losses are recognized in the income statement.
3. Available-for-sale securities: These are securities
which are not classified as either held-to-maturity or
as trading securities. These securities are reported at
estimated market value. Unrealized gains and losses are
reported, net of tax, as separate components of
shareholders' equity. Unrealized gains and losses are
excluded from the income statement.
Loans, Interest and Fee Income on Loans. Loans are stated at
the principal balance outstanding. Unearned discount, unamortized
loan fees and the allowance for possible loan losses are deducted
from total loans in the statement of condition. Interest income is
recognized over the term of the loan based on the principal amount
outstanding. Points on real estate loans are taken into income to
the extent they represent the direct cost of initiating a loan.
The amount in excess of direct costs is deferred and amortized over
the expected life of the loan.
COMMUNITY BANCSHARES, INC.
Wilkesboro, North Carolina
Notes to Consolidated Financial Statements (Unaudited)
June 30, 1997
Loans are generally placed on non-accrual status when
principal or interest becomes ninety days past due, or when payment
in full is not anticipated. When a loan is placed on non-accrual
status, interest accrued but not received is generally reversed
against interest income. If collectibility is in doubt, cash
receipts on non-accrual loans are not recorded as interest income,
but are used to reduce principal.
Allowance for Possible Loan Losses. The provisions for loan
losses charged to operating expense reflect the amount deemed
appropriate by management to establish an adequate reserve to meet
the present and foreseeable risk characteristics of the current
loan portfolio. Management's judgement is based on periodic and
regular evaluation of individual loans, the overall risk
characteristics of the various portfolio segments, past experience
with losses and prevailing and anticipated economic conditions.
Loans which are determined to be uncollectible are charged against
the allowance. Provisions for loan losses and recoveries on loans
previously charged-off are added to the allowance.
The Company adopted Statement of Financial Accounting
Standards No. 114, "Accounting by Creditors for Impairment of a
Loan," ("SFAS 114") on January 1, 1995. Under the new standard, a
loan is considered impaired, based on current information and
events, if it is probable that the Company will be unable to
collect the scheduled payments of principal or interest when due
according to the contractual terms of the loan agreement. The
measurement of impaired loans is generally based on the present
value of expected future cash flows discounted at the historical
effective interest rate, except that all collateral-dependent loans
are measured for impairment based on the fair value of the
collateral. The adoption of SFAS 114 resulted in no change to the
allowance for credit losses at January 1, 1995.
In October, 1994, FASB issued Statement of Financial
Accounting Standards No. 118, "Accounting by Creditors for
Impairment of a Loan - Income Recognition and Disclosure" ("SFAS
118"). SFAS 118 amends SFAS 114 to allow a creditor to use
existing methods for recognizing interest income on an impaired
loan, rather than the methods prescribed in SFAS 114.
Property and Equipment. Furniture, equipment and leasehold
improvements are stated at cost, net of accumulated depreciation.
Depreciation is computed using the straight line method over the
COMMUNITY BANCSHARES, INC.
Wilkesboro, North Carolina
Notes to Consolidated Financial Statements (Unaudited)
June 30, 1997
estimated useful lives of the related assets. Maintenance and
repairs are charged to operations, while major improvements are
capitalized. Upon retirement, sale or other disposition of
property and equipment, the cost and accumulated depreciation are
eliminated from the accounts, and gains or losses are included in
income from operations.
Income Taxes. The consolidated financial statements have been
prepared on the accrual basis. When income and expenses are
recognized in different periods for financial reporting purposes
and for purposes of computing income taxes currently payable,
deferred taxes are provided on such temporary differences.
Effective January 1, 1993, the Company adopted Statement of
Financial Accounting Standards No. 109, "Accounting for Income
Taxes" ("SFAS 109"). Under SFAS 109, deferred tax assets and
liabilities are recognized for the expected future tax consequences
of events that have been recognized in the financial statements or
tax return. Deferred tax assets and liabilities are measured using
the enacted tax rates expected to apply to taxable income in the
years in which those temporary differences are expected to be
realized or settled.
Statement of Cash Flows. For purposes of reporting cash
flows, cash and cash equivalents include cash on hand, amounts due
from banks and federal funds sold. Generally, federal funds are
purchased or sold for one-day periods.
Income Per Share. The weighted average number of shares
outstanding as well as all common stock equivalents must be
considered for purposes of computing earnings per share. Note that
common stock equivalents are securities that enable their holders
to obtain additional shares of common stock. Options and warrants
are common stock equivalents. They are used in the computation of
earnings per share only if, upon exercise, they dilute earnings per
share by 3% or more. To compute earnings per share, adjusted net
income is divided by the sum of weighted average common stock
outstanding and common stock equivalents. For the six-month
periods ended June 30, 1997 and 1996, net income per share amounted
to $.21 and $.12, respectively.
ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS.
The Company commenced its principal operations on January 17, 1992
when its subsidiary Bank opened for business. During the period
from February 1, 1990 to January 17, 1992, the Company was in the
development stage as it devoted most of its efforts to organizing,
incorporating, planning, raising capital and recruiting personnel.
During the development stage, the Company funded its operations
principally through borrowings. However, by December 31, 1991, all
outstanding loans were paid-off with funds raised through the sale
of the Company's common stock.
Total assets increased by $8.2 million to $82.9 million during the
six-month period ended June 30, 1997. The increase was generated
primarily through a $7.8 million increase in deposits and a $.4
million increase in equity. These funds were utilized to expand
the loan portfolio.
Liquidity and Sources of Capital
Liquidity is the Company's ability to meet all deposit withdrawals
immediately, while also providing for the credit needs of
customers. The June 30, 1997 financial statements evidence a
satisfactory liquidity position as total cash and cash equivalents
amounted to $2.2 million, representing 2.7% of total assets.
Investment securities amounted to $16.6 million, representing 20.0%
of total assets. These securities provide a secondary source of
liquidity because they can be converted into cash in a timely
manner. The subsidiary Bank is a member of the Federal Reserve
System and is maintaining relationships with several correspondent
banks and, thus, could obtain funds on short notice. The Company's
management closely monitors and maintains appropriate levels of
interest earning assets and interest bearing liabilities, so that
maturities of assets are such that adequate funds are provided to
meet customer withdrawals and loan demand. There are no trends,
demands, commitments, events or uncertainties that will result in
or are reasonably likely to result in the Company's liquidity
increasing or decreasing in any material way.
The Bank maintains an adequate level of capitalization as measured
by the following capital ratios and the respective minimum capital
requirements by the Bank's primary regulator, the Office of the
Comptroller of the Currency ("OCC").
Bank's Minimum required
June 30, 1997 by regulator
Leverage ratio 8.4% 4.0%
Risk weighted ratio 11.9% 8.0%
With respect to the leverage ratio, the regulator expects a minimum
of 5.0 percent to 6.0 percent ratio for banks that are not rated
CAMEL 1. Although the Bank is not rated CAMEL 1, its leverage
ratio of 8.4% is above the required minimum.
Results of Operations
For the three-month periods ended June 30, 1997 and 1996, net
income amounted to $153,445 and $88,374, respectively. On a per-
share basis, net income for the three-month periods ended June 30,
1997 and 1996 amounted to $.10 and $.08, respectively. As
discussed below, the improvement in net income is primarily due to
an increase in net interest income.
Net income for the six-month period ended June 30, 1997 amounted to
$313,598. These results compare favorably with the June 30, 1996
net income of $130,207. On a per share basis, net income for the
periods ended June 30, 1997 and 1996 amounted to $.21 and $.12,
respectively. The primary reasons for the increase in net income
for the six months ended June 30, 1997 from the same period in the
prior year are as follows:
a. Net interest income, which represents the difference between
interest received on interest earning assets and interest paid
on interest bearing liabilities, has increased from $1,052,964
for the six-month period ended June 30, 1996 to $1,723,162 for
the same period one year later, representing an increase of
$670,198, or 63.6%. This increase was attained primarily
because of a $22.8 million increase in earning assets, from
$53.4 million at June 30, 1996 to $76.2 million at June 30,
1997. For the three-month periods ended June 30, 1996 and
1997, net interest income rose from $573,096 to $899,777
representing an increase of $326,681, or 57.0%.
b. The net interest yield, defined as net interest income divided
by average interest earning assets, has increased from 3.94%
for the six-month period ended June 30, 1996 to 4.52% for the
six-month period ended June 30, 1997. The increase in the
yield is due to both the significant increase in the yield on
investment securities and the material decline in the interest
rates paid on certificates of deposit. The following table
presents the pertinent information concerning the yield on
earning assets and the cost of funds as of June 30, 1997.
Avg. Assets/ Interest Yield/
Description Liabilities Income/Expense Cost
Federal funds $ 1,012,782 $ 26,644 5.26%
Securities 16,307,182 522,400 6.41%
Loans 58,868,361 2,867,852 9.74%
Total $76,188,325 $3,416,896 8.97%
Transactional
accounts $11,724,171 $ 209,935 3.58%
Savings 2,225,698 36,273 3.26%
CD's 51,079,267 1,439,140 5.63%
Reverse repos 354,652 8,386 4.73%
Total $65,383,788 $1,693,734 5.18%
Net interest income $1,723,162
Net yield on earning assets 4.52%
For the three-month period ended June 30, 1996, net interest
yield rose from 3.94% to 4.58%
c. During the three-month and six-month periods ended June 30,
1997 compared to the same periods one year earlier, management
was better able to control expenses. For the six-month period
ended June 30, 1997, operating expenses amounted to $918,511,
representing an annualized 2.44% of average assets. By
comparison, for the six-month period ended June 30, 1996,
operating expenses amounted to $823,249, representing an
annualized 2.98% of average assets. For the three-month
periods ended June 30, 1997 and 1996, operating expenses
amounted to $472,803 and 416,809, respectively. As a percent
of average total assets, operating expenses declined from
3.02% for the three-month period ended June 30, 1996 to 2.51%
for the same period one year later.
d. Total non-interest income has increased from $59,380 for the
six-month period ended June 30, 1996 to $67,567 for the six-
month period ended June 30, 1997. For the three-month periods
ended June 30, 1996 and 1997, non-interest income increased
5.5% from $29,837 to $31,471. These increases are attributed
to higher volume in transactional accounts.
The following table presents information with respect to loans and
the allocations to the allowance for loan losses as of June 30,
1997:
Percent of Allocation to
Loan category Amount total allowance
Commercial, financial
agricultural $35,316,774 56.0% $540,000
Real est. - construction 6,011,728 9.5% 103,000
Real est. - mortgage 12,001,739 19.0% 143,000
Consumer loans 9,779,408 15.5% 89,000
Total $63,109,649 100.0% $865,000
Unallocated portion of allowance $16,804
As of June 30, 1997, loans aggregating $83,000 were accounted for
on a non-accrual basis. Additionally, all loans that were
contractually past due 90 days or more as to principal and/or
interest were accounted for as non-accruing loans. There were no
loans defined as "troubled debt restructuring".
During the six-month period ended June 30, 1997, the allowance for
loan losses has grown from $619,133 to $891,804. The allowance for
loan losses as a percentage of gross loans, increased from 1.16% at
December 31, 1996 to 1.41% at June 30, 1997. For the six-month
period ended June 30, 1997, the allowance for loan losses increased
$275,000 through provisions and $4,662 through recoveries; the
allowance decreased $6,991 due to charge-offs. The ratio of net
charge-off to average loans outstanding at June 30, 1997 was .004%.
Management considers the allowance for loan losses to be adequate
and sufficient to absorb possible future losses; however, there can
be no assurance that charge-offs in future periods will not exceed
the allowance for loan losses or that additional provisions to the
allowance will not be required.
The Company is not aware of any current recommendation by the
regulatory authorities which, if they were to be implemented, would
have a material effect on the Company's liquidity, capital
resources, or results of operations.
PART II. OTHER INFORMATION
Item 2. Changes in Securities
Pursuant to the exercise of stock options awarded under the
Company's incentive stock option plan, the Company issued an
aggregate of 8,620 shares of common stock to a total of 10
employees of the Company during the three-month period ended June
30, 1997 in the following transactions: (i) on April 22, 1997, 100
shares of common stock were issued to one employee who exercised
options to purchase shares of common stock at an exercise price of
$10.00 per share; (ii) on May 9, 1997, 2,668 shares of common stock
were issued to one employee who exercised options to purchase
shares of common stock at an exercise price of $9.00 per share;
(iii) on May 13, 1997, 734 shares of common stock were issued to
one employee who exercised options to purchase shares of common
stock at an exercise price of $9.00 per share; (iv) on May 14,
1997, an aggregate 650 shares of common stock were issued to two
employees who exercised options to purchase shares of common stock
at an exercise price of $9.00 per share; (v) on June 13, 1997, an
aggregate 1,534 shares of common stock were issued to two employees
who exercised options to purchase shares of common stock at an
exercise price of $9.00 per share; (vi) on June 18, 1997, an
aggregate 934 shares of common stock were issued to two employees
who exercised options to purchase shares of common stock at an
exercise price of $9.00 per share; and (vii) on June 27, 1997,
2,000 shares of common stock were issued to one employee who
exercised options to purchase shares of common stock at an exercise
price of $9.00 per share.
In connection with the exercise of warrants to purchase common
stock of the Company, on June 30, 1997 the Company issued 850
shares of common stock to one individual. The warrant was
exercised at a price of $5.50 per share and was originally issued
in connection with the Company's initial public offering to its
organizers and a group of the Company's initial shareholders.
All issuances of securities described above were made in
reliance on the exemption from registration provided by Section
4(2) of the Securities Act of 1933 as transactions by an issuer not
involving a public offering. No underwriter was involved in the
transactions and no commissions were paid.
Item 4. Submission of Matters to a Vote of Security Holders.
The 1997 Annual Meeting of Shareholders of the Company was
held on May 30, 1997. At the meeting, the following persons were
elected as directors to serve on the Company's Board of Directors
for a term of three years and until their successors are elected
and have qualified: Rebecca W. Lowe, Dwight E. Pardue, Joe D.
Severt and R. Colin Shoemaker.
The number of votes cast for and against the election of each
nominee for director was as follows:
Votes Votes
Director For Against
Rebecca W. Lowe 1,127,554 3,500
Dwight E. Pardue 1,130,554 500
Joe D. Severt 1,131,054 0
R. Colin Shoemaker 1,131,054 0
No other matters were presented or voted for at the Annual
Meeting of Shareholders.
The following persons did not stand for reelection to the
Board at the 1997 Annual Meeting of Shareholders as their term of
office continued after the Annual Meeting: Brent F. Eller, Jack R.
Ferguson, Edward F. Greene, Stephen B. Greene, Gilbert R. Miller,
Robert F. Ricketts, Rebecca Ann Sebastian and Ronald S. Shoemaker.
Item 6. Exhibits and Reports on Form 8-K.
(a) Exhibits. The following exhibit is filed with this
report.
27.1 Financial Data Schedule (for SEC use only)
(b) Reports on Form 8-K. No reports on Form 8-K were filed
during the quarter ended June 30, 1997.
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.
COMMUNITY BANCSHARES, INC.
Dated: August 12, 1997 By: /s/Ronald S. Shoemaker
Ronald S. Shoemaker, President
and Chief Executive Officer
(Principal Executive, Financial
and Accounting Officer)
Financial Data Schedule Submitted Under Item 601(a)(27) of
Regulation S-B
This schedule contains summary financial information extracted from
Community Bancshares, Inc. unaudited consolidated financial
statements for the period ended June 30, 1997 and is qualified in
its entirety by reference to such financial statements.
Item Number Item Description Amount
9-03(1) Cash and due from banks $ 1,680,859
9-03(2) Interest bearing deposits 0
9-03(3) Federal funds sold - purchased
securities for sale 550,000
9-03(4) Trading account assets 0
9-03(6) Investment and mortgage backed
securities held for sale 12,150,540
9-03(6) Investment and mortgage backed
securities held to maturity -
carrying value 4,440,598
9-03(6) Investment and mortgage backed
securities held to maturity -
market value 4,435,098
9-03(7) Loans 63,109,649
9-03(7)(2) Allowance for losses 891,804
9-03(11) Total assets 82,939,683
9-03(12) Deposits 72,249,551
9-03(13) Short-term borrowings 0
9-03(15) Other liabilities 942,888
9-03(16) Long-term debt 0
9-03(19) Preferred stock -
mandatory redemption 0
9-03(20) Preferred stock -
no mandatory redemption 0
9-03(21) Common stock 3,889,068
9-03(22) Other stockholders' equity 5,858,176
9-03(23) Total liabilities and
stockholders' equity 82,939,683
9-04(1) Interest and fees on loans 2,867,852
9-04(2) Interest and dividends
on investments 549,044
9-04(4) Other interest income 0
9-04(5) Total interest income 3,416,896
9-04(6) Interest on deposits 1,685,348
9-04(9) Total interest expense 1,693,734
9-04(10) Net interest income 1,723,162
9-04(11) Provision for loan losses 275,000
9-04(13)(h) Investment securities gains/losses (4,618)
9-04(14) Other expenses 918,511
9-04(15) Income/loss before income tax 597,218
Item Number Item Description Amount
9-04(17) Income/loss before
extraordinary items 597,218
9-04(18) Extraordinary items, less tax 0
9-04(19) Cumulative change in
accounting principles 0
9-04(20) Net income or loss 313,598
9-04(21) Earnings per share - primary .21
9-04(21) Earnings per share - fully diluted .21
I.B.5. Net yield - interest earning
assets - actual 4.52%
III.C.1(a) Loans on non-accrual 83,000
III.C.1(b) Accruing loans past due
90 days or more 16,222
III.C.1(c) Troubled debt restructuring 0
III.C.2. Potential problem loans 83,000
IV.A.1 Allowance for loan losses -
beginning of period 619,133
IV.A.2 Total chargeoffs 6,991
IV.A.3 Total recoveries 4,662
IV.A.4 Allowance for loan losses -
end of period 891,804
IV.B.1 Loan loss allowance allocated to
domestic loans 870,000
IV.B.2 Loan loss allowance allocated to
foreign loans 0
IV.B.3 Loan loss allowance - unallocated 11,804
