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 September 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 1,296,756 shares issued and
outstanding as of November 12, 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
September 30, December 31,
1997 1996
(Unaudited) (Unaudited)
Cash and due from banks $ 2,765,014 $ 1,763,882
Federal funds sold 800,000 2,450,000
Total cash and cash equivalents $ 3,565,014 $ 4,213,882
Securities:
Available-for-sale,
at estimated market values 12,101,317 11,302,580
Held-to-maturity (estimated market
values of $4,238,596 (9-30-97)
and $5,399,611 (12-31-96) 4,224,366 5,414,836
Loans, net 65,278,281 52,786,698
Land, property and equipment 963,864 218,857
Other assets 1,678,169 778,515
Total Assets $87,811,011 $74,715,368
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Deposits
Non-interest bearing deposits $ 4,706,909 $ 5,090,509
Interest bearing deposits 72,185,689 59,364,668
Total deposits $76,892,598 $64,455,177
Other liabilities 1,028,382 924,292
Total Liabilities $77,920,980 $65,379,469
Commitments & Contingencies
Shareholders' Equity:
Common stock - $3.00 par value,
10 million shares authorized;
1,296,756 (09-30-97) and 1,284,386
(12-31-96) shares issued
and outstanding $ 3,890,268 $ 3,853,158
Paid-in-capital 5,379,223 5,312,078
Retained earnings 587,033 163,259
Unrealized gain on
securities available-for-sale 33,507 7,404
Total Shareholders' Equity $ 9,890,031 $ 9,335,899
Total Liabilities
and Shareholders' Equity $87,811,011 $74,715,368
Refer to notes to the consolidated financial statements.
COMMUNITY BANCSHARES, INC.
Wilkesboro, North Carolina
Income Statements
(Unaudited)
For the nine months
ended September 30,
1997 1996
Interest income $5,476,573 $3,684,720
Interest expense 2,660,710 2,013,354
Net interest income $2,815,863 $1,671,366
Provision for possible loan losses 400,000 152,500
Net interest income (loss) after
provision for possible loan losses $2,415,863 $1,518,866
Other income:
Service fees and other charges $ 126,973 $ 99,360
Gain/(loss) on sale of securities (4,618) 1,089
Total other income $ 122,355 $ 100,449
Operating expenses:
Salaries and benefits $ 876,758 $ 623,143
Legal and professional 113,621 43,389
Depreciation 42,557 47,431
Amortization 7,002 18,053
Courier and postage 51,313 45,292
Rent expense 64,609 63,635
Data processing 98,595 78,219
Regulatory assessments 33,866 41,380
Other operating expenses 403,253 298,665
Total Expenses $1,691,574 $1,259,207
Income before taxes $ 846,644 $ 360,108
Income tax 422,869 126,053
Net income $ 423,775 $ 234,055
Income per share $ .28 $ .15
Refer to notes to the consolidated financial statements.
COMMUNITY BANCSHARES, INC.
Wilkesboro, North Carolina
Income Statements
(Unaudited)
For the three months
ended September 30,
1997 1996
Interest income $2,059,677 $1,341,135
Interest expense 966,976 722,733
Net interest income $1,092,701 $ 618,402
Provision for possible loan losses 125,000 70,000
Net interest income after
provision for possible loan losses $ 967,701 $ 548,402
Other income:
Service fees and other charges $ 54,788 $ 41,069
Total other income $ 54,788 $ 41,069
Operating expenses:
Salaries and benefits $ 384,752 $ 223,522
Legal and professional 59,772 19,494
Depreciation 17,076 15,579
Amortization 1,195 6,018
Courier and postage 22,522 14,102
Rent expense 25,193 21,527
Data processing 34,538 27,442
Regulatory assessments 8,519 5,480
Other operating expenses 219,496 102,794
Total Expenses $ 773,063 $ 435,958
Income before taxes $ 249,426 $ 153,513
Income tax 139,249 49,665
Net income $ 110,177 $ 103,848
Income per share $ .07 $ .07
Refer to notes to the consolidated financial statements.
COMMUNITY BANCSHARES, INC.
Wilkesboro, North Carolina
Statements of Cash Flows
(Unaudited)
Nine months ended
September 30,
1997 1996
Cash flows from operating activities: $ 80,394 $ 505,047
Cash flows from investing activities
Purchase of equipment (787,564) (44,153)
(Increase) in loans, net (12,891,583) (11,290,678)
Securities, available-for-sale
Sale of securities 2,051,632 1,616,300
Purchase of securities (3,939,653) (4,476,695)
Maturities and pay-downs 1,105,760 1,163,106
Securities, held-to-maturity
Purchase of securities (298,799) (775,413)
Maturities and pay-downs 1,489,269 2,001,130
Net cash used in investing activities $(13,270,938) $(11,806,403)
Cash flows from financing activities
Increase in deposits $ 12,437,421 $ 11,608,858
Proceeds from sale of stock 104,255 4,945,142
Net cash provided from financing activities $ 12,541,676 $ 16,554,000
Net decrease in cash and cash equivalents $ (648,868) $ 5,252,644
Cash and cash equivalents
at beginning of period 4,213,882 1,949,186
Cash and cash equivalents at end of period $ 3,565,014 $ 7,201,830
Refer to notes to the consolidated financial statements.
COMMUNITY BANCSHARES, INC.
Wilkesboro, North Carolina
Notes to Consolidated Financial Statements (Unaudited)
September 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 nine-month period ended September 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 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 September 30, 1997 and December 31, 1996, there were 1,296,756 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 September 30, 1997 and December 31, 1996, there
were 383,064 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)
September 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 Investments 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)
September 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)
September 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 nine-month periods ended September 30,
1997 and 1996, net income per share amounted to $.28 and $.15, respectively.
ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS.
Community Bancshares, Inc. (the "Company") is a registered bank holding
company under the Federal Bank Holding Company Act of 1956, as amended, and
owns 100% of the outstanding capital stock of both Wilkes National Bank,
Wilkesboro, North Carolina (the "Bank) and Community Mortgage Corporation,
Statesville, North Carolina ("Community Mortgage"). The Company commenced its
principal operations on January 17, 1992 when its subsidiary Bank opened for
business. The holding company structure provides flexibility for expansion of
the Company's banking business through acquisition of other financial
institutions and the provision for additional banking-related services which
the traditional commercial bank may not provide under current laws.
The Bank is a full service commercial bank, without trust powers. The Bank
offers a full range of interest bearing and non-interest bearing accounts,
including commercial and retail checking accounts, money market accounts,
individual retirement and Keough accounts, regular interest bearing statement
savings accounts, certificates of deposit, commercial loans, real estate loans,
home equity loans and consumer/installment loans. In addition, the Bank
provides such consumer services as U.S. Savings Bonds, travelers' checks,
cashier's checks, safe deposit boxes, bank by mail services and direct deposit
services.
Total assets of the Company increased by $13.1 million to $87.8 million during
the nine-month period ended September 30, 1997. The increase was generated
primarily through a $12.4 million increase in deposits, a $.6 million
increase in equity and a $.1 million increase in short term liabilities.
These funds were utilized to expand the loan portfolio of the Bank.
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 September 30, 1997
financial statements evidence a satisfactory liquidity position as total cash
and cash equivalents amounted to $3.6 million, representing 4.1% of total
assets. Investment securities amounted to $16.3 million, representing 18.6%
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
September 30, 1997 by regulator
Leverage ratio 8.2% 4.0%
Risk weighted ratio 11.5% 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 8.2% is above the
required minimum.
Results of Operations
For the three-month periods ended September 30, 1997 and 1996, net income
mounted to $110,177 and $103,848, respectively. On a per-share basis, net
income for both three-month periods ended September 30, 1997 and 1996
amounted to $.07. In the first six months of 1997, net income was
significantly higher than in the first six months of 1996. Net income for the
third quarter of 1997 compared to the third quarter of 1996 remained relatively
constant, however, primarily due to an increase in salaries and benefits and
the consolidation of Community Mortgage's financial results with those of the
Company.
Net income for the nine-month period ended September 30, 1997 amounted to
$423,775. These results compare favorably with the September 30, 1996 net
income of $234,055. On a per share basis, net income for the nine-month
periods ended September 30, 1997 and 1996 amounted to $.28 and $.15,
respectively. The primary reasons for the increase in net income for the nine
months ended September 30, 1997 compared to 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, increased from $1.7 million for the nine-month period ended
September 30, 1996 to $2.8 million for the same period one year later,
representing an increase of $1.1 million, or 68.5%. This increase was
attained primarily because of a $22.1 million increase in earning assets,
from $56.1 million at September 30, 1996 to $78.2 million at September 30,
1997. For the three-month periods ended September 30, 1996 and 1997, net
interest income increased from $618,402 to $1.1 million, representing an
increase of $474,299, or 76.9%. This significant increase in the yield is
due to the consolidation of Community Mortgage's financial results with that
of the Company's. During the third quarter of 1997, the Company completed
the acquisition of 100% of the capital stock of Community Mortgage.
Community Mortgage originates loans which it sells in the secondary markets.
All profits (loan fees) were considered and included as interest income.
b. The net interest yield, defined as net interest income divided by average
interest earning assets, has increased from 3.97% for the nine-month period
ended September 30, 1996 to 4.30% for the nine-month period ended September
30, 1997. The increase in the yield is due to both the significant increase
in the yield on earning assets and the material decline in the cost of funds.
The following table presents certain pertinent information concerning the yield
on earning assets and the cost of funds as of and for the nine-months ended
September 30, 1997.
Avg. Assets/ Interest Yield/
Description Liabilities Income/Expense Cost
Federal funds $ 1,125,651 $ 45,454 5.38%
Securities 16,344,549 783,590 6.39%
Loans 60,705,991 4,647,529 10.21%
Total $78,176,191 $5,476,573 9.34%
Transactional
accounts $13,241,941 $ 319,913 3.22%
Savings 2,343,386 55,651 3.17%
CD's 50,896,363 2,270,560 5.95%
Reverse repos 381,798 14,586 5.09%
Total $66,863,488 $2,660,710 5.31%
Net interest income $2,815,863
Net yield on earning assets 4.80%
For the three-month period ended September 30, 1997, net interest yield rose
from 4.58% to 4.97%
c. During the nine-month periods ended September 30, 1997 compared to the same
period one year earlier, management was better able to control expenses. For
the nine-month period ended September 30, 1997, operating expenses amounted to
$1.7 million, representing an annualized 2.80% of average assets. By
comparison, for the nine-month period ended September 30, 1996, operating
expenses amounted to $1.3 million, representing an annualized 2.88% of average
assets. For the three-month periods ended September 30, 1997 and 1996,
operating expenses amounted to $773,063 and $435,958, respectively. As a
percent of average total assets, operating expenses increased from 2.91% for
the three-month period ended September 30, 1996 to 3.82% for the same period
one year later. This significant increase is due primarily to an increase
in salaries and benefits, which resulted in part from the opening of a new
banking facility, and to the consolidation of Community Mortgage's financial
information with those of the Company.
d. Total non-interest income has increased from $100,449 for the nine-month
period ended September 30, 1996 to $122,355 for the nine-month period ended
September 30, 1997. For the three-month periods ended September 30, 1996
and 1997, non-interest income increased 33.4% from $41,069 to $54,788.
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 September 30, 1997:
Percent of Allocation to
Loan category Amount total allowance
Commercial, financial
agricultural $36,347,778 54.8% $612,000
Real est. - construction 5,733,574 8.7% 116,000
Real est. - mortgage 13,472,250 20.3% 160,000
Consumer loans 10,724,620 16.2% 100,000
Total $66,278,222 100.0% $988,000
Unallocated portion of allowance $11,940
As of September 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 nine-month period ended September 30, 1997, the allowance for loan
losses has grown from $619,133 to $999,940. The allowance for loan losses as
a percentage of gross loans, increased from 1.16% at December 31, 1996 to 1.51%
at September 30, 1997. For the nine-month period ended September 30, 1997, the
allowance for loan losses increased through provisions of $400,000 and
recoveries of $5,694; the allowance decreased $24,887 due to charge-offs.
The ratio of net charge-off to average loans outstanding at September 30,
1997 was .03%.
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
In connection with the exercise of warrants to purchase common stock of the
Company, on August 25, 1997 the Company issued 400 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.
The issuance of securities described above was made in reliance on the
exemption from registration provided by Section 4(2) of the Securities Act
of 1933, as amended, as a transaction by an issuer not involving a public
offering. No underwriter was involved in the transaction and no commissions
were paid.
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits.
27.1 - Financial Date Schedule (for SEC use only)
(b)Reports on Form 8-K. No reports on Form 8-K were filed during the quarter
ended September 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: November 12, 1997 By: /s/Ronald S. Shoemaker
Ronald S. Shoemaker President and Chief Executive Officer
(Principal Executive, Financial and Accounting Officer)
Exhibit 27.1
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 September 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 $ 2,765,014
9-03(2) Interest bearing deposits 0
9-03(3) Federal funds sold - purchased
securities for sale 800,000
9-03(4) Trading account assets 0
9-03(6) Investment and mortgage backed
securities held for sale 12,101,317
9-03(6) Investment and mortgage backed
securities held to maturity -
carrying value 4,224,366
9-03(6) Investment and mortgage backed
securities held to maturity -
market value 4,238,596
9-03(7) Loans 66,278,221
9-03(7)(2) Allowance for losses 999,940
9-03(11) Total assets 87,811,011
9-03(12) Deposits 76,892,598
9-03(13) Short-term borrowings 0
9-03(15) Other liabilities 1,028,382
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 3,890,268
9-03(22) Other stockholders' equity 5,999,763
9-03(23) Total liabilities and
stockholders' equity 87,811,011
9-04(1) Interest and fees on loans 4,647,529
9-04(2) Interest and dividends
on investments 829,044
9-04(4) Other interest income 0
9-04(5) Total interest income 5,476,573
9-04(6) Interest on deposits 2,646,124
9-04(9) Total interest expense 2,660,710
9-04(10) Net interest income 2,815,863
9-04(11) Provision for loan losses 400,000
9-04(13)(h) Investment securities gains/losses (4,618)
9-04(14) Other expenses 1,691,574
9-04(15) Income/loss before income tax 846,644
Item Number Item Description Amount
9-04(17) Income/loss before
extraordinary items 846,644
9-04(18) Extraordinary items, less tax 0
9-04(19) Cumulative change in
accounting principles 0
9-04(20) Net income or loss 423,775
9-04(21) Earnings per share - primary .28
9-04(21) Earnings per share - fully diluted .28
I.B.5. Net yield - interest earning
assets - actual 4.80%
III.C.1(a) Loans on non-accrual 83,000
III.C.1(b) Accruing loans past due
90 days or more 0
III.C.1(c) Troubled debt restructuring 0
III.C.2. Potential problem loans 1,639,644
IV.A.1 Allowance for loan losses -
beginning of period 619,133
IV.A.2 Total chargeoffs 24,887
IV.A.3 Total recoveries 5,694
IV.A.4 Allowance for loan losses -
end of period 999,940
IV.B.1 Loan loss allowance allocated to
domestic loans 988,000
IV.B.2 Loan loss allowance allocated to
foreign loans 0
IV.B.3 Loan loss allowance - unallocated 11,940
