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 March 31, 1997
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 Offices) (Zip Code)
(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.
1,622,330 shares of Common Stock, $5 par value per share, were outstanding as of
April 30, 1997.
<PAGE>
MONOCACY BANCSHARES, INC.
Index to Form 10-QSB Report
<TABLE>
<S> <C>
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
</TABLE>
<PAGE>
Part I
Item 1. Financial Statements
Monocacy Bancshares, Inc. and Subsidiary
Consolidated Balance Sheets
<TABLE>
<CAPTION>
March 31, December 31,
1997 1996
-------------- -------------
(unaudited)
<S> <C>
Assets
------
Cash and due from banks ........................................ $ 8,458,804 $ 10,373,937
Federal funds sold ............................................. 550,000 2,000,000
Interest-bearing deposits with other banks ..................... 410,251 108,490
Loans held for sale ............................................ 2,785,386 10,117,718
Securities available for sale .................................. 46,999,779 45,917,686
Investment securities (approximate fair value of
$23,648,149 and $23,860,226) .............................. 24,037,775 24,042,079
Loans, less allowance for loan losses of
$2,250,337 and $2,100,301 ................................. 160,939,083 156,689,585
Bank premises and equipment .................................... 8,437,318 8,435,314
Other real estate owned ........................................ 650,184 655,684
Deferred income taxes .......................................... 1,090,080 899,000
Accrued interest receivable .................................... 1,862,422 1,939,177
Other assets ................................................... 1,640,156 1,836,207
------------- -------------
Total assets ......... $ 257,861,238 $ 263,014,877
============= =============
Liabilities and Stockholders' Equity
Liabilities:
Non-interest bearing deposits ................................ $ 23,620,300 $ 24,001,887
Interest bearing deposits .................................... 202,133,828 201,037,216
------------- -------------
225,754,128 225,039,103
Federal funds purchased ...................................... -- --
Other borrowings ............................................. 8,706,675 15,338,564
Accrued interest and other expenses payable .................. 1,325,687 555,067
Dividends payable ............................................ 178,155 146,859
Other liabilities ............................................ 25,126 286,899
------------- -------------
Total liabilities ......... 235,989,771 241,366,492
Stockholders' Equity:
Common stock ................................................. 8,096,335 7,341,620
Common stock dividend to be distributed ...................... -- 3,699,159
Surplus ...................................................... 11,711,419 9,145,192
Retained earnings ............................................ 3,185,969 2,235,364
Net unrealized gain (loss) on
securities available for sale .............................. (1,122,256) (772,950)
------------- -------------
Total stockholders' equity ......... 21,871,467 21,648,385
------------- -------------
Total liabilities and stockholders' equity ..................... $ 257,861,238 $ 263,014,877
============= =============
</TABLE>
See the accompanying Notes to Consolidated Financial Statements
1
<PAGE>
Monocacy Bancshares, Inc. and Subsidiary
Consolidated Income Statements
For the three months ended March 31, 1997 and 1996
(unaudited)
<TABLE>
<CAPTION>
1997 1996
------------ ------------
<S> <C>
Interest income:
Loans, including fees .................................... $ 4,000,968 $ 3,270,267
Interest-bearing deposits with other banks ............... 6,553 31,753
Federal funds sold ....................................... 27,141 125,800
Securities available for sale ............................ 714,297 1,136,457
Investment securities .................................... 288,683 186,159
----------- -----------
Total interest income ................................. 5,037,642 4,750,436
----------- -----------
Interest expense:
Deposits ................................................. 2,330,620 2,406,959
Federal funds purchased .................................. 5,629 0
Other borrowings ......................................... 178,199 276,105
----------- -----------
Total interest expense ................................ 2,514,448 2,683,064
----------- -----------
Net interest income ............................... 2,523,194 2,067,372
Provision for loan losses ...................................... 180,000 75,000
----------- -----------
Net interest income after provision for loan losses 2,343,194 1,992,372
----------- -----------
Noninterest income:
Service charges on deposit accounts ...................... 106,406 84,841
Other service charges .................................... 155,015 167,786
Trust department fees .................................... 38,375 34,265
Gains and fees on sales of loans ......................... 353,400 59,023
Gains (losses) on sales of securities .................... (2,550) 33,695
Other .................................................... 126,348 59,391
----------- -----------
Total noninterest income .............................. 776,994 439,001
----------- -----------
Noninterest expense:
Salaries & employee benefits ............................. 1,360,655 1,085,674
Occupancy ................................................ 200,834 148,175
Equipment ................................................ 186,822 175,401
Deposit insurance ........................................ 15,000 24,463
Professional fees ........................................ 94,502 66,901
Other .................................................... 444,958 337,973
----------- -----------
Total noninterest expense ............................. 2,302,771 1,838,587
----------- -----------
Income before income taxes ..................................... 817,417 592,786
Provision for income taxes ..................................... 150,176 124,560
----------- -----------
Net income ..................................................... $ 667,241 $ 468,226
=========== ===========
Net income per common share .................................... $ 0.41 $ 0.29
=========== ===========
</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 March 31, 1997 is unaudited)
<TABLE>
<CAPTION>
Net Unrealized
Gain(Loss) on
Common Stock Securities Total
Common Dividend to be Retained Available Stockholders'
Stock Distributed Surplus Earnings for Sale Equity
------------- ------------ ----------- ------------ --------------- -------------
<S> <C>
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 ............................. -- -- -- 1,610,804 -- 1,610,804
Issuance of shares of common stock
in connection with employee benefit
and dividend reinvestment plans ... 63,440 -- 182,778 -- -- 246,218
Issuance of 10% common stock dividend .. 660,405 (2,845,643) 2,185,238 --
Cash dividend .......................... -- -- -- (585,020) -- (585,020)
10% stock dividend to be distributed ... -- 3,699,159 -- (3,699,159) -- --
Decrease in fair value of securities
available for sale ................ -- -- -- -- (791,698) (791,698)
------------ ------------ ------------ ------------ ------------ ------------
Balance at December 31, 1996 ........... 7,341,620 3,699,159 9,145,192 2,235,364 (772,950) 21,648,385
Net income for three months ............ -- -- -- 667,241 -- 667,241
Issuance of shares of common stock
in connection with employee benefit
and dividend reinvestment plans ... 20,580 -- 70,168 -- -- 90,748
Issuance of 10% common stock dividend .. 734,135 (3,699,159) 2,496,059 461,483 -- (7,482)
Cash dividend .......................... -- -- -- (178,119) -- (178,119)
Decrease in fair value of securities
available for sale ................ -- -- -- -- (349,306) (349,306)
============ ============ ============ ============ ============ ============
Balance at March 31, 1997 .............. $ 8,096,335 $ -- $ 11,711,419 $ 3,185,969 $ (1,122,256) $ 21,871,467
============ ============ ============ ============ ============ ============
</TABLE>
3
<PAGE>
Monocacy Bancshares, Inc. and Subsidiary
Consolidated Statements of Cash Flows
For the three month periods ended March 31, 1997 and 1996
(unaudited)
<TABLE>
<CAPTION>
Three Months Ended March 31,
1997 1996
------------- ------------
<S> <C>
Cash flows from operating activities:
Net income .................................................. $ 667,241 $ 468,226
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization .......................... 204,608 15,297
Provision for loan losses .............................. 180,000 75,000
Deferred income taxes .................................. (191,080) 200,571
(Gains)losses on sales of securities available for sale 2,550 (33,695)
Proceeds from sales of loans originated for sale ....... 12,844,622 3,231,030
Disbursements for loans originated for sale ............ (5,162,095) (3,172,007)
Gains on sale of loans ................................. (350,195) (59,023)
Decrease in unearned income, net of origination costs . (75,507) (195,045)
Gain on sale of other real estate owned ................ -- --
Writedown of other real estate owned ................... 5,500 --
(Increase)decrease in accrued interest receivable ...... 76,755 (541,768)
Increase in accrued interest and other
expenses payable ................................... 770,620 296,060
Other, net .................................................. (65,722) 649,177
------------ ------------
Net cash provided by operating activities 8,907,297 933,823
------------ ------------
Cash flows from investing activities:
Net (increase)decrease in interest-bearing
deposits with other banks .............................. (301,761) 388,893
Proceeds from maturities of investment securities ........... 4,304 5,236,993
Proceeds from sales of securities available for sale ........ 1,383,549 3,448,477
Proceeds from maturities of securities available for sale ... 1,591,416 822,479
Purchases of securities available for sale .................. (4,408,914) (29,613,572)
Purchases of investment securities .......................... -- (15,521,461)
Loan originations, net of principal repayments .............. (4,353,991) 175,443
Purchases of bank premises and equipment .................... (206,612) (1,095,185)
Additions to real estate owned .............................. -- (8,432)
Proceeds from real estate owned ............................. -- 7,500
------------ ------------
Net cash used in investing activities ... (6,292,009) (36,158,865)
------------ ------------
Cash flows from financing activities:
Net increase in deposits .................................... 715,025 2,302,715
Repayments of other borrowings .............................. (6,631,889) (2,213,110)
Issuance of common stock .................................... 90,748 29,786
Dividends paid on common stock .............................. (154,305) (145,829)
------------ ------------
Net cash used in financing activities ... (5,980,421) (26,438)
------------ ------------
Net decrease in cash and cash equivalents ........................ (3,365,133) (35,251,480)
Cash and cash equivalents at beginning of period ................. 12,373,937 47,143,615
============ ============
Cash and cash equivalents at end of period ....................... $ 9,008,804 $ 11,892,135
============ ============
Supplemental disclosures of cash flow information:
Interest paid on deposits and borrowings .................... $ 2,167,329 $ 2,366,723
Income taxes paid ........................................... -- 934
</TABLE>
See the accompanying Notes to Consolidated Financial Statements.
4
<PAGE>
MONOCACY BANCSHARES, INC. AND SUBSIDIARY
Notes to Consolidated Financial Statements
(Information as of and for the three months
ended March 31, 1997 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") 1997 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 March 31, 1997, and for the
three month periods ended March 31, 1997 and 1996 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 months
ended March 31, 1997 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 March 31, 1997, were $257,861 a 1.96% or $5,154 decrease from
December 31, 1996. The decrease in assets from December 31, 1996 occurred
primarily in liquid assets as the Bank repaid short-term borrowings from
proceeds of an $8.8 million sale of residential mortgage loans during the first
quarter. The securities portfolios, including investment securities and
securities available for sale, which totaled $71,038 at March 31, 1997 and
$69,960 at December 31, 1996 , were at approximately the same level. Net loans
were $160,939, which reflects a 2.71% increase from December 31, 1996 due
primarily to increases in both the commercial and commercial real estate loan
portfolios. Deposits increased $715 or .32% from December 31, 1996, primarily in
the time deposit category due to a first quarter certificate of deposit
campaign.
ALLOWANCE FOR LOAN LOSSES
The allowance for loan losses was $2,250 at March 31, 1997, which was 1.38% of
loans. During the first three months of 1997, Monocacy had a $180 provision for
loan losses and had net charge-offs of $30. At December 31, 1996, the allowance
for loan losses was $2,100 or 1.32% of loans.
Table 1, "Non-Performing Assets and Past Due Loans" for Monocacy shows total
non-performing assets of $1,522 at March 31, 1997. The allowance for loan losses
is 258.03% of non-accrual loans and 147.83% of non-performing assets at March
31, 1997, 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 month periods ended March 31, 1997 and
1996.
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 $218,722 or 96.89% of total deposits at March 31, 1997.
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 $59,204
or 22.96% of total assets at March 31, 1997.
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 March 31, 1997, the Bank had $8,006 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 March 31, 1997, 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").
6
<PAGE>
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 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 March 31, 1997.
Minimum
Monocacy Bancshares, Inc. Regulatory
March 31, 1997 Requirements
------------------------- ------------
Risk-based capital ratios
Tier I capital ........... 10.74% 4.00%
Total capital ............ 12.02% 8.00%
Leverage capital ratio ..... 7.23% 3.00%
RESULTS OF OPERATIONS
Net income was $667 for the first three months of 1997, up from $468 or 42.52%
for the same period last year. Net interest income was up by $456 for the first
three months of 1997, a result of the higher 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 $180 for the first three
months of 1997 and $75 for the same period last year.
Non-interest income increased by $338 or 76.99% for the first three months of
1997 with higher deposit service charges, loan servicing fees and more gains
realized on the sales of loans. In addition, a gain of $100,000 was realized on
the sale of a lease purchase option during January of 1997.
Mortgage-banking activities were more profitable during the three month period
ended March 31, 1997, as evidenced by a 51.34% increase in servicing fees and a
179.66% increase in gains on sales of loans for that period over the same period
in 1996. This increase is attributable to the operations of Classic Mortgage
Company, which the Company acquired in April, 1996. In addition to the increase
in normal operating gains on sales of loans, the Company realized a $188 gain on
a bulk sale of residential mortgage loans in the first quarter of 1997.
The Company realized losses on sales of securities available for sale of $3 for
the three months ended March 31, 1997 as compared to gains of $34 for the same
period in 1996.
Non-interest expenses grew by $464 or 25.23% for the three month period ended
March 31, 1997, with higher staff levels and related costs and the additional
investments in other resources made in late 1996. Deposit insurance was down
38.68% from 1996 due to the more favorable rate structure in effect since the
recapitalization of the FDIC funds. Professional fees are up 41.26% primarily
due to the ongoing litigation noted in Note 13 to the Company's Consolidated
Financial Statements in the Company's 1996 Annual Report to Shareholders.
Income taxes were $150 for an effective tax rate of 18.37% in the first three
months of 1997. The effective tax rate for the first three months of 1996 was
21.01%. The decreased effective tax rate is due primarily to the increased
investment in tax-exempt municipal securities by the Company.
7
<PAGE>
Table 1
Monocacy Bancshares, Inc.
Non-Performing Assets and Past Due Loans
March 31, March 31, December 31,
1997 1996 1996
-------- -------- -----------
Non-accrual loans:
Real Estate
Commercial mortgage ........... $ 618 $1,013 $ 735
Residential mortgage .......... 94 -- --
Commercial ......................... 158 210 52
Consumer ........................... 2 5 6
------ ------ ------
Total non-accrual loans ............ 872 1,228 793
Foreclosed properties .............. 650 1,312 656
------ ------ ------
Total non-performing assets ........ $1,522 $2,540 $1,449
====== ====== ======
Allowance for loan losses to:
Non-accrual loans ............. 258.03% 160.42% 264.82%
====== ====== ======
Non-performing assets ......... 147.83% 77.56% 144.93%
====== ====== ======
Accruing loans past due
90 days or more ............... $1,119 $ 210 $ 757
====== ====== ======
Allowance for loan losses .......... $2,250 $1,970 $2,100
====== ====== ======
8
<PAGE>
Table 2
Monocacy Bancshares, Inc.
Allowance For Loan Losses
Three months ended March 31,
1997 1996
-------- --------
Allowance for loan losses
at beginning of period ................ $ 2,100 $ 1,904
Provision for loan losses .................. 180 75
Charge-offs ................................ (33) (10)
Recoveries ................................. 3 1
------- -------
Allowance for loan losses
at end of period ...................... $ 2,250 $ 1,970
======= =======
Allowance for loan losses
as a percentage of loans
receivable, net of
unearned income ....................... 1.38% 1.41%
======= =======
9
<PAGE>
PART II
Item 1. Legal Proceedings
As previously reported, the Bank has been named as a defendant in a
legal proceeding in the Circuit Court for Baltimore City wherein it is
alleged that the Bank permitted the improper withdrawal or transfer of
funds from a deposit account containing escrow monies at the Bank. It
is also alleged that the Bank misapplied certain sums of money by
depositing them in an unrelated account holder's deposit account. The
complaint seeks recovery against the Bank in the amount of $482,000.
Management, after consultation with the legal counsel, believes that it
has defenses available and intends to vigorously defend against the
claims. Although the amount of any ultimate liability with respect to
these claims cannot be determined, management is of the opinion that
any losses resulting form the disposition of these matters will not
have a material adverse effect on the financial condition of the
Company.
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 March 31, 1997, the Board of Directors of the Company declared an
$.11 per share cash dividend to common stockholders of record on April
14, 1997, payable April 28, 1997.
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
None.
* 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: April 30, 1997
Principal Financial and Accounting Officer:
By:___________________________________________
Michael K. Walsch, Executive Vice President
Date: April 30, 1997
11
MONOCACY BANCSHARES, INC. AND SUBSIDIARY EXHIBIT 11.0
Information used in the computation
of net income per common share
Three Months Ended
March 31,
-------------------------
1997 1996
---- ----
Net income ....................................... $ 667,241 $ 468,226
========== ==========
Weighted average common shares outstanding ....... 1,646,831 1,604,216
========== ==========
Net income per common share ...................... $ .41 $ .29
========== ==========
12
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 9
<S> <C> <C>
<PERIOD-TYPE> 3-MOS 3-MOS
<FISCAL-YEAR-END> DEC-31-1997 DEC-31-1996
<PERIOD-END> MAR-31-1997 MAR-31-1996
<CASH> 8,459 8,592
<INT-BEARING-DEPOSITS> 410 416
<FED-FUNDS-SOLD> 550 3,300
<TRADING-ASSETS> 2,785 0
<INVESTMENTS-HELD-FOR-SALE> 47,000 77,890
<INVESTMENTS-CARRYING> 24,038 25,808
<INVESTMENTS-MARKET> 23,648 25,227
<LOANS> 163,189 139,270
<ALLOWANCE> 2,250 1,970
<TOTAL-ASSETS> 257,861 266,069
<DEPOSITS> 225,754 225,715
<SHORT-TERM> 2,023 7,360
<LIABILITIES-OTHER> 1,529 2,290
<LONG-TERM> 6,684 10,060
0 0
0 0
<COMMON> 8,096 7,287
<OTHER-SE> 13,775 13,357
<TOTAL-LIABILITIES-AND-EQUITY> 21,871 266,069
<INTEREST-LOAN> 4,001 3,270
<INTEREST-INVEST> 1,003 1,322
<INTEREST-OTHER> 34 158
<INTEREST-TOTAL> 5,038 4,750
<INTEREST-DEPOSIT> 2,331 2,407
<INTEREST-EXPENSE> 2,514 2,683
<INTEREST-INCOME-NET> 2,523 2,067
<LOAN-LOSSES> 180 75
<SECURITIES-GAINS> (3) 34
<EXPENSE-OTHER> 2,303 1,839
<INCOME-PRETAX> 817 593
<INCOME-PRE-EXTRAORDINARY> 817 593
<EXTRAORDINARY> 0 0
<CHANGES> 0 0
<NET-INCOME> 667 468
<EPS-PRIMARY> 0.41 0.29
<EPS-DILUTED> 0 0
<YIELD-ACTUAL> 4.45% 3.71%
<LOANS-NON> 872 1,228
<LOANS-PAST> 650 210
<LOANS-TROUBLED> 0 0
<LOANS-PROBLEM> 0 0
<ALLOWANCE-OPEN> 2,100 1,904
<CHARGE-OFFS> 33 10
<RECOVERIES> 3 1
<ALLOWANCE-CLOSE> 2,250 1,970
<ALLOWANCE-DOMESTIC> 2,250 1,409
<ALLOWANCE-FOREIGN> 0 0
<ALLOWANCE-UNALLOCATED> 270 561
</TABLE>
