Table Of Contents
Union National Bancorp, Inc.
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
Consolidated Balance Sheet 2
Consolidated Statement of Income 3
Consolidated Statement of Cash Flows 4
Consolidated Statement of Changes in Stockholders' Equity 5
Notes to Consolidated Financial Statements
Item 2. Management's Discussion and Analysis 6-9
PART II - OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K 10
- 1 -
<PAGE>
United States Securities and Exchange Commission Washington, DC 20549
FORM 10-Q {X} QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 1997
{ } TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from ___________ to ___________
COMMISSION FILE NUMBER: 000-22523
UNION NATIONAL BANCORP, INC. (Exact name of registrant as specified in its
charter)
Maryland 52-0514247
(State of incorporation) (I.R.S. identification number)
117 East Main Street, Westminster, MD 21157 (410) 848-7200
(Address of principal executive offices) (Telephone number)
Indicated 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 filing
requirements for the past 90 days.
YES {X} NO { }
The number of shares of common stock outstanding as of November 12,1997
is 834,000 shares.
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<PAGE>
<TABLE>
Part 1 Financial Information Item 1 Financial Statements
<CAPTION>
Union National Bancorp, Inc.
Consolidated Balance Sheets
September 30, December 31,
1997 1996
(Unaudited)
----------- ------------
ASSETS
<S> <C> <C>
Cash and due from banks $5,896,989 $6,910,561
Interest bearing deposits in other banks 9,416 160,821
Federal funds sold 25,543,290 8,882,550
Investment securities available for sale-at fair value 50,403,950 38,866,761
Investment securities held to maturity-at amortized cost-fair value of
$14,090,310 (1997) and $17,304,150 (1996) 13,867,045 17,073,011
Loans 148,820,474 147,350,540
Less: allowance for credit losses (1,842,734) (1,772,433)
Loans - net 146,977,740 145,578,107
Bank premises and equipment 4,030,638 3,928,561
Foreclosed real estate 481,528 391,236
Accrued interest receivable 1,461,810 1,292,194
Other assets 1,751,353 1,951,826
TOTAL ASSETS $250,423,757 $225,035,628
============ ============
LIABILITIES
Deposits:
Non-interest bearing deposits $24,828,820 $23,694,607
Interest bearing deposits 184,033,789 175,596,828
Total deposits 208,862,609 199,291,435
Short-term borrowings
Fed. funds purchased/securities sold under agreement to repurchase 10,963,911 6,808,596
Federal Home Loan Bank Borrowing 10,000,007 -
Accrued expenses and other liabilities 1,022,237 882,930
Total liabilities 230,848,764 206,982,961
--------------- -----------
STOCKHOLDERS' EQUITY
Common stock - $.01 par; 10,000,000 shares authorized;
834,000 shares issued and outstanding 8,340 8,340
Surplus 8,342,055 8,342,055
Net unrealized appreciation (depreciation) on securities available
for sale (net of related tax effects) 76,738 (58,586)
Retained earnings 11,147,860 9,760,858
Total stockholders' equity 19,574,993 18,052,667
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $250,423,757 $225,035,628
================ ===============
</TABLE>
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<PAGE>
<TABLE>
<CAPTION>
Consolidated Statements of Income (Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
1997 1996 1997 1996
---- ---- ---- ----
INTEREST INCOME:
<S> <C> <C> <C> <C>
Interest and fees on loans $3,395,098 $3,410,723 $10,129,567 $10,347,508
Interest and dividends on investment securities:
Taxable interest on mortgage backed securities 314,961 354,076 961,921 1,110,853
Other taxable interest & dividends 639,220 381,546 1,779,464 947,580
Nontaxable interest 75,248 86,499 228,180 278,061
Interest on deposits in other banks 740 1,807 3,496 59,203
Interest on federal funds sold 86,452 100,884 286,349 256,972
------ ------- ------- -------
Total interest income 4,511,719 4,335,535 13,388,977 13,000,177
--------- --------- ---------- ----------
INTEREST EXPENSE:
Interest on deposits:
Time certificates of deposit of $100,000 and more 233,588 286,267 809,156 906,971
Other deposits 1,706,128 1,756,626 4,944,411 4,856,594
--------- --------- --------- ---------
Total interest on deposits 1,939,716 2,042,893 5,753,567 5,763,565
Interest on short-term borrowings 138,469 96,245 370,175 252,285
Interest on Federal Home Loan Bank borrowings 1,228 0 1,228 26,300
----- --------- ----- ------
Total interest expense 2,079,413 2,139,138 6,124,970 6,042,150
--------- --------- --------- ---------
NET INTEREST INCOME AFTER 2,432,306 2,196,397 7,264,007 6,958,027
PROVISION FOR CREDIT LOSSES 30,000 60,000 145,000 251,000
------ ------ ------- -------
NET INTEREST INCOME AFTER
PROVISION FOR CREDIT LOSSES 2,402,306 2,136,397 7,119,007 6,707,027
--------- --------- --------- ---------
NON INTEREST INCOME:
Service charges on deposit accounts 264,334 225,071 725,186 557,176
Other service charges 36,118 31,379 125,251 111,256
Gains on sales of loans - - - 15,726
Other operating income 8,885 22,473 95,255 91,796
----- ------ ------ ------
Total non interest income 309,337 278,923 945,692 775,955
------- ------- ------- -------
NON-INTEREST EXPENSES:
Salaries and employee benefits 1,102,150 985,246 3,166,820 2,876,112
Occupancy expense of bank premises 183,466 201,817 542,051 589,086
Equipment expenses 117,311 79,596 314,319 259,354
Other operating expenses 390,190 687,299 1,373,062 1,640,542
------- ------- --------- ---------
Total non interest expenses 1,793,117 1,953,958 5,396,252 5,365,094
--------- --------- --------- ---------
INCOME BEFORE INCOME TAXES 918,526 461,362 2,668,448 2,117,888
PROVISION FOR INCOME TAXES 297,589 212,511 872,784 739,078
------- ------- ------- -------
NET INCOME $620,937 $248,851 $1,795,664 $1,378,810
======== ======== ========== ==========
EARNINGS PER COMMON SHARE $0.74 $0.30 $2.15 $1.65
</TABLE>
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<PAGE>
<TABLE>
<CAPTION>
Union National Bancorp, Inc. Consolidated Statements of Cash Flows (Unaudited)
FOR THE NINE MONTHS ENDED SEPTEMBER 30,
1997 1996
---- ----
CASH FLOWS FROM OPERATING ACTIVITIES:
<S> <C> <C>
Net income $1,795,663 $1,378,810
Adjustments to reconcile net income to net cash
provided by operating activities:
Provision for credit losses 145,000 251,000
Depreciation and amortization 475,694 421,794
Gain on sales of other real estate and other assets (21,357) (23,784)
Deferred income taxes 342,583 209,424
Net decrease (increase) in accured interest receivable (169,616) 49,528
Net increase (decrease) in accrued expenses & other liabilities 139,307 135,944
Other - net (18,226) 90,022
------- ------
Net cash provided by operating activities 2,689,048 2,512,738
--------- ---------
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of available for sale securities (22,878,503) (12,000,000)
Proceeds from maturities of available for sale securities 10,849,120 3,572,945
Purchase of held to maturity securities 0 (2,650,00)
Proceeds from maturities of held to maturity securities 3,308,122 6,170,741
Proceeds from sale of other real estate and other assets 306,066 326,405
Net increase in loans (1,544,634) (671,109)
Bank premises and equipment acquired (577,771) (591,437)
Foreclosed real estate acquired 0 (124,451)
--------- --------
Net cash used in investing activities (10,537,601) (5,966,906)
----------- ---------
CASH FLOWS FROM FINANCING ACTIVITIES:
Net increase (decrease) in deposits 9,597,654 4,827,524
Net increase (decrease) in short-term borrowings 4,155,322 12,968,409
Borrowing (Repayments) of Federal Home Loan Bank borrowings 10,000,000 (5,000,000)
Cash dividends paid (408,660) (350,280)
-------- --------
Net cash provided by financing activities 23,344,316 12,445,653
---------- ----------
NET INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS 15,495,763 8,991,485
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 15,953,932 13,641,267
---------- ----------
CASH AND CASH EQUIVALENTS AT END OF YEAR $31,449,695 $22,632,752
=========== ===========
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
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<PAGE>
Interest paid $6,124,970 $6,042,151
========== ==========
Income taxes paid 771,000 827,525
======= =======
NON-CASH INVESTING ACTIVITIES
Transfer from loans to foreclosed real estate $375,000 $191,083
-------- --------
Transfer from available for sale securities
to held to maturity securities $ - $ -
========= =========
</TABLE>
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<PAGE>
<TABLE>
<CAPTION>
Union National Bancorp
Consolidated Statements of Changes in Stockholers' Equity
Unrealized
Appreciated
(Depreciation)
on Securities
Common Available
Stock Surplus for Sale Profits Total
----- ------- -------- ------- -----
<S> <C> <C> <C> <C> <C> <C> <C>
Balance at December 31, 1995 $8,340 $8,342,055 ($183,075) $8,372,716 $16,540,036
Net income - - - 1,378,810 1,378,810
Cash dividends ($.42 per share) - - - (350,280) (350,280)
Unrealized depreciation on securities
available for sale (net of tax) - - (122,540) - (122,540)
------ --------- -------- --------- ----------
Balance at September 30, 1996 8,340 8,342,055 (305,615) 9,401,246 17,446,026
Net income - - - 484,712 484,712
Cash dividends ($.42 per share) - - - (125,100) (125,100)
Unrealized appreciation on securities
available for sale (net of tax) - - 247,029 - 247,029
------ ---------- ------- ---------- ----------
Balance at December 31, 1996 $8,340 $8,342,055 $(58,586) $9,760,858 $18,052,667
Net income - - - 1,795,663 1,795,663
Cash dividends ($.57 per share) - - - (408,660) (408,660)
Unrealized appreciation on securities
available for sale (net of tax) - - 135,323 - 135,323
------ ---------- ------- ----------- -------
Balance at September 20, 1997 $8,340 $8,342,055 $76,737 $11,147,861 $19,574,993
====== ========== ======= =========== ===========
</TABLE>
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<PAGE>
Union National Bancorp, Inc.
Notes to Consolidated Financial Statements (Unaudited)
Note 1 - The accompanying unaudited consolidated financial statements for Union
National Bancorp, Inc. ("Company") have been prepared in accordance with the
instructions for Form 10-Q and, therefore do not include all information and
footnotes required by generally accepted accounting principles for complete
financial statements. The interim financial statements have been prepared
utilizing the interim basis of reporting and, as such, reflect all adjustments
which are normal and recurring in nature and are, in the opinion of management,
necessary for fair presentation of the results for the periods presented. The
results of operations for the interim periods are not necessarily indicative of
the results for the full year.
Note 2 - Recent accounting pronouncements: The FASB has issued Statements of
Financial Accounting Standards No. 128 "Earning Per Share" in February 1997 for
the year ending on or after December 15, 1997, and No. 130 " Reporting
Comprehensive Income" in June 1997, and No. 131 "Disclosures about Segments of
an Enterprise and Related Information" in June 1997, with effective dates for
years beginning after December 15,1997 for each pronouncement. The Company has
determined that the adoption of these Statements will not have a material effect
on its disclosures.
Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations.
Overview
In 1994, Union National Bancorp, Inc. commenced operations as the
parent company of its sole subsidiary, The Union National Bank of Westminster,
("Bank") which has conducted the business of banking since 1816. Since the Bank
is the primary possession of the holding company, the assets and liabilities of
the holding company are made up almost entirely of the assets and liabilities of
the Bank. The same is true for the income and expense of the Company with the
exception of activities conducted at the holding company level only, such as
mergers and acquisitions.
This section of the report contains forward looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995, including
statements relating to the Company's beliefs, expectations, anticipations and
plans regarding, among other things, general economic trends, interest rates,
product expansions and other matters. Such statements are subject to numerous
uncertainties, such as federal monetary policy, inflation, employment,
profitability and consumer confidence levels, the health of the real estate and
construction market in the Company's market area, the Company's ability to
develop and market new products and to enter new markets, and other factors, and
as such, there can be no assurance that future events will develop in accordance
with the forward looking statements contained herein.
Total assets were $250.4 million at September 30, 1997, an increase of
$29.7 million or 11.9% over one year earlier. The primary funding source for the
asset growth was certificates of deposit. Growth in deposits has declined in
recent years as depositors have sought other avenues of investment to enhance
their yields. Loan growth slowed during the second half of 1996 and remained
sluggish throughout 1997. Other investments have increased as loan growth has
slowed. Recently, management has made personal changes they believe will revive
loan growth. As loan volume increases other funding sources are being explored
to sustain this growth. For example, the Bank has taken advantage of competitive
rate on borrowings from the Federal Home Loan Bank.
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<PAGE>
Net income rose 30.2% in the first nine months of 1997 to $1,795,663
from net income of $1,378,810 in the same period of 1996. The return on average
assets for the nine month period ended September 30, 1997 and 1996 was 1.05% and
.95%, respectively. The return on average equity was 12.97% for the nine months
ended September 30,1997 and was 12.29% for the nine months ended September
30,1996.
Securities Portfolio
Total holdings in the investment portfolio at September 30,1997 were
$64,270,995 and at year-end were $55,939,772 in 1996. In aggregate, investment
securities increased $8,331,223 or 14.9% in the first nine months of 1997. The
table below presents to securities portfolio mix as September 30, 1997 when
compared to 1996 at year end.
<TABLE>
<CAPTION>
Available for-Sale Held-to-Maturity
September 30, 1997 December 31, 1996 September 30, 1997 December 31, 1996
------------------ ----------------- ------------------ -----------------
<S> <C> <C> <C> <C>
U.S. government securities $2,993,765 $5,489,035 $ - $ -
U.S. government agencies 29,978,922 18,075,915 939,096 2,550,751
Government mortgaged-backed 15,437,197 13,494,132 7,690,949 8,874,027
State & county municipals 581,000 602,500 5,237,000 5,648,233
Other securities 1,413,065 1,205,179 - -
------------------ ------------------ ------------------- -------------
Total Investment Securities $50,403,949 $38,866,761 $13,867,045 $17,073,011
------------------ ------------------ ------------------- -------------
</TABLE>
Loan Portfolio
Total loans outstanding on September 30,1997 were $148,820,474 and on
December 31,1996 were $147,350,540. The loan portfolio increased 1,469,994 or
1.0% in the first nine months of the year. The loan portfolio represented 59.4%
of total assets on September 30,1997 and 64.7% of total assets on December
31,1996.
The Bank's loan portfolio is composed of commercial and residential
real estate secured loans, commercial loans, and consumer installment loans.
Most residential mortgages are held for investment purposes and the majority
have a loan to value ratio of less than 80%. For those residential mortgages
with loan to value ratios greater than 80%, Private Mortgage Insurance is
required to reduce risk. Both commercial real estate secured and commercial
loans consist of well seasoned credits and new ventures that are well
collateralized. The consumer portfolio is comprised of installment loans for
purposes such as vehicle purchases, debt consolidation, home improvement, and
indirect auto loans purchased from approximately nine dealerships. An emphasis
during the first nine months of 1997 has been in home equity loans (fixed term)
which are secured by the residence. Use of debt to income ratios and recent
Credit Bureau scores assist to minimize losses in the consumer portfolio. The
Company does not engage in foreign lending, and involvement with speculative
real estate and land development are minimal. The Company strives to meet the
needs of the community by lending in the Carroll County market area.
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<PAGE>
September 30, 1997 December 31, 1996
------------------ -----------------
Construction and land development $4,042,095 $1,842,538
Residential real estate - mortgages 44,745,483 40,686,314
Commercial real estate - mortgages 51,639,969 50,575,745
Commercial 24,760,230 27,563,398
Consumer 23,632,697 27,219,780
---------- ----------
Total Loans 148,820,474 147,887,775
----------- -----------
Allowance for Credit Losses
The allowance for loan losses on September 30,1997 was $1,842,734 and
on December 31,1996 was $1,772,433. This is an increase of 70,301 or 4.1%. The
ratio of allowance to total loans was 1.20% at year end 1996 and 1.24% at the
end of the first nine months of 1997.
<TABLE>
<CAPTION>
Analysis of the Allowance for Credit Losses
Description Amount
<S> <C> <C> <C> <C> <C>
Balance at beginning of period 1/1/97 $1,772,433
Charge-offs first quarter 1997 (48,024)
Charge-offs second quarter 1997 (15,338)
Charge-offs third quarter 1997 (55,665)
-------
Gross Charge-offs for first nine months of 1997 (119,027)
--------
Recoveries first quarter 1997 20,267
Recoveries second quarter 1997 3,838
Recoveries third quarter 1997 20,223
------
Allocation first quarter 1997 60,000
Allocation second quarter 1997 55,000
Allocation third quarter 1997 30,000
------
Gross Recoveries and Allocations 189,328
-------
Net Changes since end of 1996 $70,301
-------
Balance at end of period 9/30/97 $1,842,734
Net Charge-offs as a percentage of average total loan First nine months 1.24%
</TABLE>
The methodology used in determining the allowance is calculated
quarterly and is applied in accordance with Banking Circular 201 and assesses
risk based on the following categories: trend, in delinquencies and nonaccruals;
experience, ability, and depth of lending management and staff; national and
local economic trends and conditions; and concentrations of credit that may
affect loss experience. In addition, historical loss data for both our bank and
peers are considered. A "reserve range" is determined from this process. A
comparison is then made of the actual allowance balance to the estimated
potential loss in the entire portfolio to determine the current period provision
for credit losses.
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<PAGE>
Deposits
The Company uses deposits as the primary source for funding assets
growth. The Company has experienced continuous growth of deposits, especially in
certificates of deposit.
Total deposits were $208,862,609 on September 30,1997 and $199,291,435 on
December 31, 1996. The primary source of deposits in both 1997 and 1996 was
certificates of deposits which grew $3.4 million or 3.1%. In addition, checking
accounts rose $2.3 million or 5.1%. Both regular savings and money market
accounts remained approximately the same, increasing $257,820 or .81% in 1997
and $112,211 or .64% in 1996.
Short-Term Borrowings
Short-term borrowings can consist of Federal funds purchased,
repurchase agreements, and borrowings from the Federal Reserve Bank or the
Federal Home Loan Bank and correspondent bank lines.
Securities sold under agreement to repurchase have averaged $10,035,933
during 1997 compared to $8,555,503 in 1996. At September 30, 1997, they totaled
$10,963,911 and, at year-end 1996, they totaled $6,808,596.
In the third quarter of 1997, the Bank borrowed $10,000,000 from the
Federal Home Loan Bank. These funds were obtained to promote further growth in
the loan portfolio. Management believes the spread between the cost of funds on
these borrowings and investment return in the loan portfolio will increase the
Bank's net interest margin.
Liquidity
Traditionally, the Bank has maintained a strong liquidity position due
to its concentration of core deposits such as regular savings and checking
accounts. The Bank considers a high percentage of its money market accounts and
certificates of deposit as core deposits. Federal funds sold is the Bank's most
liquid earning asset. Other sources include securities classified as available
for sale. In addition to these sources, the Bank has lines of credit totaling
$33 million available from correspondent banks as of September 30,1997.
On September 30, 1997, securities available for sale and federal funds
sold totaled $75,947,240 compared with 47,749,311 on December 31, 1996. These
assets averaged $59,278,299 at September 30,1997 and $40,304,499 in 1996.
Liquidity is also provided by managing the maturities of loans, securities, and
certificates of deposit.
Capital Management
The Company's capital position is presented in the following table:
<TABLE>
<CAPTION>
September 30, December 31 Regulatory
1997 1996 Requirement
---------------------------------------------------
<S> <C> <C> <C> <C>
Tier 1 capital to risk weighted assets 12.0% 11.7% 4.0%
Total capital to risk weighted assets 13.1% 12.9% 8.0%
Capital leverage ratio 8.4% 8.0% 3.0%
</TABLE>
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<PAGE>
Net Interest Income
Net interest income is the major component of the Bank's earnings, and
it consists of the excess of interest income from earning assets less the
expense of interest bearing liabilities. Earning assets are composed primarily
of loans and securities, while deposits and short-term borrowings represent the
major portion of interest bearing liabilities. Changes in the volume and mix of
these assets and liabilities, as well as changes in the yields earned and rates
paid, are determinants of the changes in net interest income. The net interest
margin is calculated bases on tax-equivalent net interest income (income plus
the tax savings from tax-exempt loans and investments) divided by average
earning assets and represents the Bank's net yield on its earning assets.
For the first nine months, net interest income before provision for
loan losses was $7,264,007 in 1997, $6,958,027 in 1996. This represents an
increase of $305,980 (4.4%) for 1997. Managing the net interest margin is one of
the primary focuses of the Asset/ Liability Committee. Monthly, the committee
examines the "gap" and it's assumptions for their validity, and assesses the
margins movement relative to these factors. The net interest spread represents
the difference between the yield of net earning assets and the cost of net
interest bearing liabilities, which rose to 4.03% in the first nine months of
1997 from 4.01% in the same period of 1996.
Noninterest Income
Total noninterest income for the first nine months of 1997 was $945,692
up $169,737 or 21.9% from $775,955 for the first nine months in 1996. Service
charges on deposit accounts increased $168,010 or 30.1%. This increase in
service charges on deposit accounts is a trend the Bank feels will continue.
Beginning in the fourth quarter, the Bank began service charging foreign ATM
activity, a practice all other local competitors have been practicing. Also, the
bank plans to introduce its debit card product in the last quarter of 1997.
Noninterest Expense
Noninterest expense for the first nine months of 1997 was $5,396,252, a
slight increase of $31,158 or .58% from $5,365,094 in 1996.
In the first nine months of 1997, salaries and benefits totaled
$3,166,820, up $290,708 or 10.1% from $2,876,112 in the first nine months of
1996. Personnel expense is the largest segment of noninterest expense. It
represented 58.7% of the total for the nine months ended September 30, 1997.
Occupancy and equipment expenses for the first nine months totaled
$856,370 in 1997, an increase of $7,930 or .9% from $848,440 for the first nine
months of 1996. This increase is primarily due to depreciation expense and start
up cost of our new Eldersburg branch, and bringing item processing "in house".
We will be expanding into the Mount Airy region early in 1998, we anticipate the
slight increase in noninterest expenses will be offset by a greater increase in
noninterest income.
Other operating expense totaled $1,373,062 for the first nine months of
1997, a decrease of $267,480 or 16.3% from $1,640,542 for the first nine months
of 1996. The main factor in the reduction is due to a decrease in computer
service expense of $167,298 or 36.6% over the same period in 1996. This decrease
was partially offset by an increase in checks, accounts, and cash loss of
$42,194 in the first nine months of 1997 compared to the first nine months of
1996.
- 12 -
<PAGE>
PART II - OTHER INFORMATION
Item 1. Exhibits and Reports on Form 8-K
A Report on Form-8K
(a) Changes in Registrant's Certifying accountant on form 8K was filed for item
four of 8K on October 1, 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 months by the
undersigned thereunto duly authorized.
Union National Bancorp (Registrant)
October 18, 1997 By: /s/ Virginia W. Smith
-------------------------
Virginia W. Smith
President and Chief Executive Officer
October 18,1997 By: /s/ Gabrielle M. Peregoy
----------------------------
Gabrielle M. Peregoy
Vice President
- 13 -
<TABLE> <S> <C>
<ARTICLE> 9
<LEGEND>
This schedule contains summary financial information extracted for Union
National Bancorp's Form 10-Q for the nine months ended September 30, 1997 and is
qualified in it's entirety by reference to such financial statements.
</LEGEND>
<CIK> 0000919871
<NAME> UNION NATIONAL BANCORP
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> SEP-30-1997
<CASH> 5,896,989
<INT-BEARING-DEPOSITS> 9,416
<FED-FUNDS-SOLD> 25,543,290
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 50,403,950
<INVESTMENTS-CARRYING> 13,867,045
<INVESTMENTS-MARKET> 0
<LOANS> 148,820,474
<ALLOWANCE> 1,842,734
<TOTAL-ASSETS> 250,423,757
<DEPOSITS> 208,862,609
<SHORT-TERM> 10,963,911
<LIABILITIES-OTHER> 1,022,237
<LONG-TERM> 10,000,007
0
0
<COMMON> 8,340
<OTHER-SE> 19,566,653
<TOTAL-LIABILITIES-AND-EQUITY> 250,423,757
<INTEREST-LOAN> 10,129,567
<INTEREST-INVEST> 2,969,565
<INTEREST-OTHER> 289,844
<INTEREST-TOTAL> 13,388,977
<INTEREST-DEPOSIT> 5,753,567
<INTEREST-EXPENSE> 6,124,970
<INTEREST-INCOME-NET> 7,264,006
<LOAN-LOSSES> 145,000
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 5,396,252
<INCOME-PRETAX> 2,668,448
<INCOME-PRE-EXTRAORDINARY> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,795,664
<EPS-PRIMARY> 0.01
<EPS-DILUTED> 0.01
<YIELD-ACTUAL> 1.41
<LOANS-NON> 895,739
<LOANS-PAST> 161,465
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 3,097,306
<ALLOWANCE-OPEN> 1,772,433
<CHARGE-OFFS> 119,026
<RECOVERIES> 44,327
<ALLOWANCE-CLOSE> 1,842,734
<ALLOWANCE-DOMESTIC> 1,842,734
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
