SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
QUARTERLY REPORT UNDER SECTION 12 OR 15(D) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 1996
Commission file number 0-22536
Monocacy Bancshares, Inc.
(Exact Name of Registrant as Specified in its Charter)
Maryland 52-1824297
(State or Other Jurisdiction (I.R.S. Employer
of Incorporation or Organization) Identification No.)
222 E. Baltimore Street
Taneytown, Maryland 21787
(Address of Principal Executive (Zip Code)
Offices)
(410) 756-2655
(Registrant's Telephone Number, Including Area Code)
Indicate by check mark whether the Registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the Registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
Yes X No
------- -------
Indicate the number of shares outstanding of each of the classes of common
stock, as of the latest practical date.
1,463,498 shares of Common Stock, $5 par value per share, were outstanding as of
August 10, 1996.
<PAGE>
MONOCACY BANCSHARES, INC.
Index to Form 10-QSB Report
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
Consolidated Balance Sheets . . . . . . . . . . .. 1
Consolidated Income Statements . . . . . . . . . . 2
Consolidated Statements of Stockholders' Equity .. 3
Consolidated Statements of Cash Flow . . . . . . . 4
Notes to Consolidated Financial Statements . . . . 5
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations . . . . . . 6
PART II - OTHER INFORMATION
Item 1. Legal Proceedings . . . . . . . . . . . . . . . . . . . . 10
Item 2. Changes in Securities . . . . . . . . . . . . . . . . . . 10
Item 3. Defaults Upon Senior Securities . . . . . . . . . . . . . 10
Item 4. Submission of Matters to a Vote of Security Holders . . . 10
Item 5. Other Information . . . . . . . . . . . . . . . . . . . . 10
Item 6. Exhibits and Reports on Form 8-K . . . . . . . . . . . .. 10
Signatures . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
<PAGE>
Part I
Item 1. Financial Statements
Monocacy Bancshares, Inc. and Subsidiary
Consolidated Balance Sheets
<TABLE>
<CAPTION>
June 30, December 31,
Assets 1996 1995
------
------------------- -------------------
(unaudited)
<S> <C>
Cash and due from banks $ 7,023,443 $ 10,734,907
Federal funds sold -- 36,408,708
Interest-bearing deposits with other banks 247,900 804,820
Securities available for sale 68,721,140 53,840,610
Investment securities (approximate fair value of
$22,985,131 and $15,260,585) 24,050,183 15,523,954
Loans held for sale 174,437 --
Loans, less allowance for loan losses of
$2,031,247 and $1,904,168 146,689,814 137,222,322
Bank premises and equipment 7,469,209 6,233,342
Other real estate owned 1,306,800 1,310,842
Deferred income taxes 1,200,475 520,297
Accrued interest receivable 2,245,957 1,663,410
Other assets 1,290,978 1,930,407
------------------- -------------------
Total assets $ 260,420,336 $ 266,193,619
=================== ===================
Liabilities and Stockholders' Equity
Liabilities:
Non-interest bearing deposits $ 24,023,481 $ 21,317,312
Interest bearing deposits 193,699,213 202,094,532
------------------- -------------------
217,722,694 223,411,844
Federal funds purchased 600,000 --
Other borrowings 20,746,537 19,633,051
Accrued interest and other expenses payable 982,203 752,270
Dividends payable 146,015 132,356
Other liabilities 329,220 1,096,017
------------------- -------------------
Total liabilities 240,526,669 245,025,538
Stockholders' Equity:
Common stock 7,296,130 6,617,775
Common stock dividend to be distributed -- 2,845,643
Surplus 9,014,078 6,777,176
Retained earnings 5,587,092 4,908,739
Net unrealized gain (loss) on
securities available for sale (2,003,633) 18,748
------------------- -------------------
Total stockholders' equity 19,893,667 21,168,081
------------------- -------------------
Total liabilities and stockholders' equity $ 260,420,336 $ 266,193,619
=================== ===================
</TABLE>
See the accompanying Notes to Consolidated Financial Statements.
1
<PAGE>
Monocacy Bancshares, Inc. and Subsidiary
Consolidated Income Statements
For the six and three month periods ended June 30, 1996 and 1995
(unaudited)
<TABLE>
<CAPTION>
Six Months Ended June 30, Three Months Ended June 30,
1996 1995 1996 1995
------------ ------------ ------------ ------------
<S> <C>
Interest income:
Loans, including fees $6,637,916 $6,730,949 $3,367,649 $3,383,306
Interest-bearing deposits with other banks 42,339 195,993 10,586 148,050
Federal funds sold 135,932 38,588 10,132 34,572
Securities available for sale 2,217,114 275,784 1,080,657 168,102
Investment securities 554,878 1,124,313 368,719 566,653
------------ ------------ ------------ ------------
Total interest income 9,588,179 8,365,627 4,837,743 4,300,683
------------ ------------ ------------ ------------
Interest expense:
Deposits 4,718,402 3,193,368 2,311,443 1,717,887
Federal funds purchased 16,988 28,538 16,988 9,789
Other borrowings 508,529 433,606 232,424 200,827
------------ ------------ ------------ ------------
Total interest expense 5,243,919 3,655,512 2,560,855 1,928,503
------------ ------------ ------------ ------------
Net interest income 4,344,260 4,710,115 2,276,888 2,372,180
Provision for loan losses 150,000 300,000 75,000 150,000
------------ ------------ ---------------- ------------
Net interest income after
provision for loan losses 4,194,260 4,410,115 2,201,888 2,222,180
------------ ------------ ------------ ------------
Noninterest income:
Service charges on deposit accounts 194,879 157,910 110,038 82,901
Loan service charges 337,415 214,341 169,629 131,976
Trust department fees 78,551 85,842 44,286 53,814
Gains and fees on sales of loans 279,934 45,021 220,911 20,177
Gains (losses) on sales of securities 21,755 11,549 (11,940) -
Other 131,231 164,998 71,840 85,722
------------ ------------ ------------ ------------
Total noninterest income 1,043,765 679,661 604,764 374,590
------------ ------------ ------------ ------------
Noninterest expense:
Salaries & employee benefits 2,375,067 1,892,031 1,289,393 935,733
Occupancy 300,901 207,088 152,726 102,191
Equipment 351,187 333,975 175,786 193,560
Deposit insurance 58,989 191,591 34,526 95,798
Professional fees 167,998 120,293 101,097 57,587
Other 772,711 599,840 434,738 307,393
------------ ------------ ------------ ------------
Total noninterest expense 4,026,853 3,344,818 2,188,266 1,692,262
------------ ------------ ------------ ------------
Income before income taxes 1,211,172 1,744,958 618,386 904,508
Provision for income taxes 240,973 502,343 116,413 268,780
------------ ------------ ------------ ------------
Net income $ 970,199 $1,242,615 $ 501,973 $ 635,728
============ ============ ============ ============
Net income per common share $ 0.67 $ 0.94 $ 0.35 $ 0.48
============ ============ ============ ============
</TABLE>
See the accompanying Notes to Consolidated Financial Statements.
2
<PAGE>
Monocacy Bancshares, Inc. and Subsidiary
Consolidated Statements of Stockholders' Equity
(Information for the three months ended June 30, 1996 is unaudited)
<TABLE>
<CAPTION>
Net Unrealized
Common Stock Gain(Loss) on Total
Common Dividend to be Retained Securities Stockholders'
Stock Distributed Surplus Earnings Available for Sale Equity
----------- ----------- ----------- ------------ ------------------- -------------
<S> <C>
Balance at December 31, 1993 $6,561,000 - 6,561,000 4,077,477 89,878 $17,289,355
Net income - - - 2,222,130 - 2,222,130
Issuance of shares of common stock
in connection with employee benefit
and dividend reinvestment plans 13,145 - 49,009 - - 62,154
Cash dividend - - - (367,714) - (367,714)
Decrease in fair value of securities
available for sale - - - - (596,242) (596,242)
----------- ----------- ----------- ------------ -------------- ------------
Balance at December 31, 1994 6,574,145 - 6,610,009 5,931,893 (506,364) 18,609,683
Net income - - - 2,350,776 - 2,350,776
Issuance of shares of common stock
in connection with employee benefit
and dividend reinvestment plans 43,630 - 167,167 - - 210,797
Cash dividend - - - (528,287) - (528,287)
10% stock dividend to be distributed - 2,845,643 - (2,845,643) - -
Increase in fair value of securities
available for sale - - - - 525,112 525,112
----------- ----------- ----------- ------------ -------------- ------------
Balance at December 31, 1995 6,617,775 2,845,643 6,777,176 4,908,739 18,748 21,168,081
Net income - - - 970,199 - 970,199
Issuance of shares of common stock
in connection with employee benefit
and dividend reinvestment plans 17,950 - 51,664 - - 69,614
Issuance of 10% common stock dividend 660,405 (2,845,643) 2,185,238
Cash dividend - - - (291,846) - (291,846)
Decrease in fair value of securities
available for sale - - - - (2,022,381) (2,022,381)
=========== =========== =========== ============ ============== ============
Balance at June 30, 1996 $7,296,130 - 9,014,078 5,587,092 (2,003,633) $ 19,893,667
=========== =========== =========== ============ ============== ============
</TABLE>
3
<PAGE>
Monocacy Bancshares, Inc. and Subsidiary
Consolidated Statements of Cash Flows
For the six and three month periods ended June 30, 1996 and 1995
(unaudited)
<TABLE>
<CAPTION>
Six Months Ended June 30, Three Months Ended June 30,
1996 1995 1996 1995
------------- ------------- ------------- ------------
<S> <C>
Cash flows from operating activities:
Net income $ 970,199 $ 1,242,615 $ 501,973 $ 635,728
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization 23,967 589,120 8,670 314,891
Provision for loan losses 150,000 300,000 75,000 150,000
Deferred income taxes 7,432 (70,193) (193,139) (16,065)
Gains on sales of securities available for sale (21,755) (11,549) 11,940 -
Proceeds from sales of loans originated for sale 9,016,120 12,759,367 5,785,090 2,143,334
Disbursements for loans originated for sale (8,736,186) (12,714,346) (5,564,179) (2,123,157)
Gains on sale of loans (279,934) (45,021) (220,911) (20,177)
Increase in unearned income,
net of origination costs 315,410 90,741 510,455 164,984
Gain on sale of other real estate owned - (19,763) - -
(Increase)decrease in accrued interest receivable (582,547) 32,172 (40,779) (36,648)
Increase(decrease) in accrued interest and other
expenses payable 229,933 200,725 (66,127) 56,904
Other, net (127,368) 92,751 (776,545) 1,171,054
------------- ------------- ------------- ------------
Net cash provided by operating activities 965,271 2,446,619 31,448 2,440,848
------------- ------------- ------------- ------------
Cash flows from investing activities:
Net (increase)decrease in interest-bearing
deposits with other banks 556,920 (180,450) 168,027 1,392,580
Proceeds from maturities of investment securities 6,995,232 191,777 1,758,239 9,302
Proceeds from sales of securities available for sale 9,324,961 2,302,156 5,876,484 139,880
Proceeds from maturities of securities available for sale 2,719,845 1,810,000 1,897,366 -
Purchases of securities available for sale (29,613,572) (9,414,806) - (7,359,806)
Purchases of investment securities (15,521,461) - - -
Sales of loan participations - 155,843 - 155,843
Loan originations, net of principal repayments (10,107,339) 1,380,818 (10,282,782) (1,362,883)
Purchases of bank premises and equipment (1,259,834) (261,898) (164,649) (132,229)
Additions to real estate owned (16,232) - (7,800) -
Proceeds from real estate owned 20,274 - 12,774 -
------------- ------------- ------------- ------------
Net cash used in investing activities (36,901,206) (4,016,560) (742,341) (7,157,313)
------------- ------------- ------------- ------------
Cash flows from financing activities:
Net increase(decrease) in deposits (5,689,150) 10,982,519 (7,991,865) 12,279,586
Proceeds from issuance of other borrowings 23,167,000 - 3,780,486 -
Repayments of other borrowings (22,053,514) (2,826,219) (453,890) (1,663,110)
Issuance of common stock 13,659 116,545 4,850 10,506
Dividends paid on common stock (222,232) (237,013) (97,380) (93,676)
------------- ------------- ------------- ------------
Net cash provided by (used in)
financing activities (4,784,237) 8,035,832 (4,757,799) 10,533,306
------------- ------------- ------------- ------------
Net increase (decrease) in cash and cash equivalents (40,720,172) 6,465,891 (5,468,692) 5,816,841
Cash and cash equivalents at beginning of period 47,143,615 6,311,742 11,892,135 6,960,792
============= ============= ============= ============
Cash and cash equivalents at end of period $ 6,423,443 $ 12,777,633 $ 6,423,443 $12,777,633
============= ============= ============= ============
Supplemental disclosures of cash flow information:
Interest paid on deposits and borrowings $ 4,636,072 $ 3,229,862 $ 2,269,349 $ 1,664,007
Income taxes paid 168,634 385,200 167,700 304,033
Transfers of loans to other real estate owned - 400,000 - 400,000
Securitization of residential mortgage loans - 7,784,483 - -
</TABLE>
4
See the accompanying Notes to Consolidated Financial Statements.
<PAGE>
MONOCACY BANCSHARES, INC. AND SUBSIDIARY
Notes to Consolidated Financial Statements
(Information as of and for the three and six months
ended June 30, 1996 is unaudited)
NOTE 1 - BASIS OF PRESENTATION
The accompanying consolidated financial statements have been prepared
in accordance with the instructions for Form 10-QSB and, therefore, do
not include all information and notes necessary for a fair presentation
of financial condition, results of operations and cash flows in
conformity with generally accepted accounting principles. The
consolidated financial statements should be read in conjunction with
the audited financial statements included in the Monocacy Bancshares,
Inc., (the "Company") 1995 Annual Report on Form 10-KSB.
The consolidated financial statements include the accounts of the
Company's subsidiary, Taneytown Bank & Trust Company (the "Bank). All
significant intercompany balances and transactions have been
eliminated.
The consolidated financial statements as of June 30, 1996, and for the
three and six month periods ended June 30, 1996 and 1995 are unaudited
but include all adjustments (consisting only of normal recurring
adjustments) which the Company considers necessary for a fair
presentation of financial position and results of operations for those
periods. The Consolidated Statements of Income for the three and six
months ended June 30, 1996 are not necessarily indicative of the
results that will be achieved for the entire year.
NOTE 2 - EARNINGS PER COMMON SHARE
Earnings per common share are based upon the weighted average number of
common shares outstanding during the periods, adjusted by any common
stock equivalents and giving retroactive effect to stock dividends.
NOTE 3 - ALLOWANCE FOR LOAN LOSSES
The Allowance for Loan Losses is established through a provision for
loan losses charged to expenses. Loans are charged against the
allowance when management believes that the collectibility of the
principal is unlikely. The allowance is an amount that management
believes will be adequate to absorb possible losses on existing loans
that may become uncollectible, based on evaluations of the
collectibility of loans and prior loan loss experience. While
management uses available information to recognize losses on loans,
future additions to the allowance may be necessary based on changes in
economic conditions. In addition, various regulatory agencies, as an
integral part of their examination process, periodically review the
Bank's allowance for loan losses. Such agencies may require the Bank to
recognize additions to the allowance based on their judgments about
information available to them at the time of their examinations.
NOTE 4 - ACQUISITIONS
On April 19, 1996, Royal Oak Savings Bank ("the Savings Bank"), a
separate subsidiary of Monocacy Bancshares, Inc., was merged into the
operations of the Bank, with the Savings Bank's branches becoming
branches of the Bank. The two (2) new branch offices are located in
Eldersburg, Maryland and Randallstown, Maryland. As of the date of the
merger, the Savings Bank had total assets of approximately $46 million
and total deposits of approximately $38 million.
On April 1, 1996, the Bank acquired Classic Mortgage Company, a
mortgage-banking operation. The mortgage company is being operated as a
division of the Bank.
5
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS (dollars in thousands)
FINANCIAL CONDITION
Total assets at June 30, 1996, were $260,420 a 2.17% or $5,774 decrease from
December 31, 1995. The decrease in assets from December 31, 1995 occurred
primarily in liquid assets as the Bank experienced a $5,689 or 2.55% decline in
deposits. In addition, the funds received in the December 31, 1995 acquisition
of the Savings Bank that were invested in federal funds sold as of December 31,
1995 were re-invested in higher yielding securities during the first quarter of
1996 causing a significant redistribution of funds between the Bank's investment
portfolios. The securities portfolios totaled $92,771 at June 30, 1996, which
was $23,406 above the December 31, 1995 level. Net loans were $146,690, which
reflects a 6.90% increase from December 31, 1995.
ALLOWANCE FOR LOAN LOSSES
The allowance for loan losses was $2,031 at June 30, 1996, which was 1.36% of
loans. During the first six months of 1996, Monocacy had a $150 provision for
loan losses and had net charge-offs of $23. At December 31, 1995, the allowance
for loan losses was $1,904 or 1.37% of loans.
Table 1, "Non-Performing Assets and Past Due Loans" for Monocacy shows total
non-performing assets of $2,515 at June 30, 1996. The allowance for loan losses
is 168.13% of non-performing loans and 80.76% of non-performing assets at June
30, 1996, indicating substantial coverage.
Based upon the latest quarterly analysis of the loan portfolio, Management
considers the allowance for loan losses to be adequate to absorb any reasonable,
foreseeable loan losses.
Table 2, "Changes in the Allowance for Loan Losses" shows the activity in the
allowance for loan losses for the three and six month periods ended June 30,
1996 and 1995.
LIQUIDITY
Liquidity describes the ability of the Company to meet financial obligations,
including lending commitments and contingencies, that arise during the normal
course of business. Liquidity is primarily needed to meet the borrowing and
deposit withdrawal requirements of the customers of the Company, as well as to
meet current and planned expenditures.
The Company's liquidity is derived primarily from its deposit base and equity
capital. Core deposits, defined as all deposits except certificates of deposit
of $100 or more, totaled $210,228 or 96.56% of total deposits at June 30, 1996.
Liquidity is also provided through the Company's portfolios of cash and interest
bearing deposits in other banks, federal funds sold, investment securities due
within one year and securities available for sale. Such assets totaled $75,992
or 29.18% of total assets at June 30, 1996.
In addition, the Bank has established lines of credit totaling $30,000 with the
Federal Home Loan Bank of Atlanta (the "FHLB") as an additional source of
liquidity. At June 30, 1996, the Bank had $20,747 outstanding with the FHLB and
had sufficient collateral necessary to borrow the full amount available under
the lines of credit.
CAPITAL RESOURCES
The Federal Reserve Board has adopted risk-based capital guidelines for bank
holding companies. As of June 30, 1996, the required minimum ratio of capital to
risk-adjusted assets (including certain off-balance sheet items, such as standby
letters of credit) was 8%. At least half of the total capital must be comprised
of common equity, retained earnings and a limited amount of perpetual preferred
stock, after subtracting goodwill and making certain other adjustments ("Tier I
capital"). The remainder may consist of perpetual debt, mandatory convertible
debt securities, a limited amount of subordinated debt, remaining preferred
stock and a limited amount of loan loss reserves ("Tier 2 capital"). The maximum
amount of supplementary capital elements that
6
<PAGE>
qualify as Tier 2 capital is limited to 100% of Tier 1 capital net of goodwill
and certain other intangible assets. The Federal Reserve Board also has adopted
a minimum leverage ratio (Tier 1 capital to assets) of 3% for bank holding
companies that meet certain specified criteria, including having the highest
regulatory rating. The rule indicates that the minimum leverage ratio should be
at least 1.0% to 2.0% higher for holding companies that do not have the highest
rating or that are undertaking major expansion programs. Failure to meet the
capital guidelines could subject a banking institution to a variety of
enforcement remedies available to federal regulatory authorities.
The table below presents the Company's capital position relative to its various
minimum statutory and regulatory capital requirements at June 30, 1996.
Minimum
Monocacy Bancshares, Inc. Regulatory
June 30, 1996 Requirements
Risk-based capital ratios
Tier I capital 10.35% 4.00%
Total capital 11.55% 8.00%
Leverage capital ratio 7.06% 3.00%
RESULTS OF OPERATIONS
Net income was $970 for the first six months of 1996, down from $1,243 or 21.96%
for the same period last year. Net interest income was down by $366 for the
first six months of 1996, a result of the lower net interest margin because of
the changing mix of earning assets and interest-bearing liabilities and the
interest rate environment. The provision for loan losses was $150 for the first
six months of 1996 and $300 for the same period last year. Net income, net
interest income and the provision for loan losses were $502, $2,277, and $75,
respectively for the three month period ended June 30, 1996.
Non-interest income increased by $364 or 53.53% for the first six months of 1996
with higher loan service charges, loan servicing fees and more gains realized on
the sales of loans. Mortgage-banking activities were more profitable during the
six month period ended June 30, 1996, as evidenced by a 138.22% increase in
servicing fees and gains on sales of loans for that period over the same period
in 1995. A significant portion of this increase is attributable to fees earned
on the servicing portfolio acquired in the Royal Oak transaction. Taneytown
Bank's April 1, 1996 acquisition of Classic Mortgage Company also contributed
significantly to the increased profitability of the mortgage-banking operations.
Gains recognized on sales of securities available for sale were $22 for the six
months ended June 30, 1996 as compared to losses of $12 for the same period in
1995. Non-interest expenses grew by $682 or 20.39% for the six month period
ended June 30, 1996, with higher staff levels and related costs and continuing
investments in additional technology. Offsetting these increases to non-interest
expenses was a reduction in the Federal Deposit Insurance Corporation insurance
rate for Banks due to the full capitalization of the Bank Insurance Fund ("BIF")
that occurred in 1995. Non-interest income was $605 for the three months ended
June 30, 1996, as compared to $375 for the same period in 1995. Non-interest
expenses were $2,188 for the three months ended June 30, 1996, as compared to
$1,692 for the same period in 1995.
Income taxes were $241 for an effective tax rate of 19.90% in the first six
months of 1996. The effective tax rate for the first six months of 1995 was
28.8%. The decreased effective tax rate is due primarily to the increased
investment in tax-exempt municipal securities by the Company. Income taxes were
$116 for an effective tax rate of 18.77% for the three month period ended June
30, 1996.
7
<PAGE>
Table 1
Monocacy Bancshares, Inc.
Non-Performing Assets and Past Due Loans
<TABLE>
<CAPTION>
June 30, June 30, December 31,
1996 1995 1995
-------- ---------- ---------
<S> <C>
Non-accrual loans:
Real Estate
Commercial mortgage $ 994 $ 1,417 $ 1,042
Residential mortgage - - -
Commercial 210 145 210
Consumer 4 7 6
-------- ---------- ---------
Total non-accrual loans 1,208 1,569 1,258
Foreclosed properties 1,307 698 1,311
======== ========== =========
Total non-performing assets $ 2,515 $ 2,267 $ 2,569
======== ========== =========
Allowance for loan losses to:
Non-accrual loans 168.13% 114.53% 151.35%
======== ========== =========
Non-performing assets 80.76% 79.27% 74.11%
======== ========== =========
Accruing loans past due
90 days or more $ 34 $ 103 $ 174
======== ========== =========
Allowance for loan losses $ 2,031 $ 1,797 $ 1,904
======== ========== =========
</TABLE>
8
<PAGE>
Table 2
Monocacy Bancshares, Inc.
Allowance For Loan Losses
<TABLE>
<CAPTION>
Six months ended June 30, Three months ended June 30,
1996 1995 1996 1995
----------------- ----------------- ----------------- -----------------
<S> <C>
Allowance for loan losses
at beginning of period $ 1,904 $ 1,902 $ 1,970 $ 1,913
Provision for loan losses 150 300 75 150
Charge-offs (26) (417) (16) (271)
Recoveries 3 12 2 5
================= ================= ================= =================
Allowance for loan losses
at end of period $ 2,031 $ 1,797 $ 2,031 $ 1,797
================= ================= ================= =================
Allowance for loan losses
as a percentage of loans
receivable, net of
unearned income 1.36% 1.31%
================= =================
</TABLE>
9
<PAGE>
PART II
Item 1. Legal Proceedings
None
Item 2. Changes in Securities
None
Item 3. Defaults Upon Senior Securities
None
Item 4. Submission of Matters to a Vote of Security Holders
None
Item 5. Other Information
On June 24, 1996, the Board of Directors of the Company declared a $.10
per share cash dividend to common stockholders of record on July 8,
1996, payable July 22, 1996.
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
Exhibit No.
11.0 Information used in the computation Page 12
of net income per share
27.0 Financial Data Schedule Page 13
(b) Reports on Form 8-K
* Exhibits incorporated by reference
10
<PAGE>
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.
MONOCACY BANCSHARES, INC.
Registrant
Principal Executive Officer:
By:_________________________________
Frank W. Neubauer, President/CEO
Date: August 10, 1996
Principal Financial and Accounting Officer:
By:_______________________________________________
Michael K. Walsch, Executive Vice President/CFO
Date: August 10, 1996
11
MONOCACY BANCSHARES, INC. AND SUBSIDIARY EXHIBIT 11.0
Information used in the computation
of net income per common share
<TABLE>
<CAPTION>
Six Months Ended Three Months Ended
June 30, June 30,
-------- --------
1996 1995 1996 1995
---- ---- ---- ----
<S> <C>
Net income $970,199 $1,242,615 $501,973 $635,728
======== ========== ======== ========
Weighted average common shares outstanding 1,458,870 1,317,858 1,459,724 1,319,286
========= ========= ========= =========
Net income per common share $.67 $.94 $.35 $.48
==== ==== ==== ====
</TABLE>
12
<TABLE> <S> <C>
<ARTICLE> 9
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> Dec-31-1996
<PERIOD-END> Jun-30-1996
<CASH> 7,023
<INT-BEARING-DEPOSITS> 248
<FED-FUNDS-SOLD> 0
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 68,721
<INVESTMENTS-CARRYING> 24,050
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<LONG-TERM> 6,467
0
0
<COMMON> 7,296
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<INTEREST-TOTAL> 9,588
<INTEREST-DEPOSIT> 4,718
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<INCOME-PRETAX> 1,211
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<EPS-PRIMARY> 0.67
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<ALLOWANCE-CLOSE> 2,031
<ALLOWANCE-DOMESTIC> 1,659
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 372
</TABLE>
