<PAGE>
<PAGE>
FORM 10-QSB
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 1997
-------------------------------------------------
Commission File Number: 0-25290
--------------------------------
Twin City Bancorp, Inc.
--------------------------------------------------------------
(Exact name of registrant as specified in its charter)
Tennessee 62-1582947
- ----------------------- -----------------
(State of incorporation) (I.R.S. Employer
Identification No.)
310 State Street, Bristol Tennessee 37620
- -----------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code:(423) 989-4400
--------------
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 require
ments for the past ninety days: Yes __x__ No ___
As of September 30, 1997, there are 1,272,447 shares of the
registrant's Common Stock, par value $1.00 per share, issued and
outstanding.
Transitional small business disclosure format (check one):
Yes _____ No __x__
<PAGE>
<PAGE>
TWIN CITY BANCORP, INC. AND SUBSIDIARIES
----------------------------------------
Bristol, Tennessee
------------------
INDEX
-----
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
Consolidated Balance Sheets - (Unaudited) as of December
31, 1996 and September 30, 1997
Consolidated Statements of Income - (Unaudited) for the
nine month and three month periods ended September 30,
1996 and 1997
Consolidated Statements of Cash Flows- (Unaudited) for
the nine month periods ended September 30, 1996 and 1997
Notes to (Unaudited) Consolidated Financial Statements
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations
<PAGE>
<PAGE>
TWIN CITY BANCORP, INC.
AND SUBSIDIARIES
Consolidated Balance Sheets
(unaudited)
(in thousands)
<TABLE>
<CAPTION>
December 31, September 30,
1996 1997
------------ ---------
<S> <C> <C>
Cash and due from banks $ 920 $ 1,429
Interest-earning deposits 2,003 2,880
Federal funds - 350
Investment securities (amortized cost -
$8,351 and $8,492) 8,354 8,514
Loans receivable, net 78,177 75,414
Loans held for sale 30 380
Mortgage-backed securities (amortized cost -
$11,716 and $13,182) 11,649 13,265
Premises and equipment, net 1,767 2,517
Real estate, net 233 90
Federal Home Loan Bank stock 671 707
Interest receivable 378 406
Other 859 980
-------- --------
Total Assets $105,041 $106,932
======== ========
</TABLE>
(continued on next page)
<PAGE>
<PAGE>
TWIN CITY BANCORP, INC.
AND SUBSIDIARIES
Consolidated Balance Sheets
(unaudited)
(in thousands)
<TABLE>
<CAPTION>
December 31, September 30,
1996 1997
------------ -------------
<S> <C> <C>
Liabilities and Stockholders' Equity
- ------------------------------------
Deposits $85,689 $89,624
Federal Home Loan Bank advances 5,100 1,000
Advance payments by borrowers for taxes
and insurance 282 1,344
Accrued expenses and other liabilities 313 405
Income taxes payable:
Current - 256
Deferred 272 462
-------- --------
Total Liabilities 91,656 93,091
-------- --------
Stockholders' Equity
Common stock ($1 par value, 8,000,000
shares authorized; 853,484 shares issued
and outstanding at December 31, 1996 and
1,272,447 shares issued and outstanding
at September 30, 1997) 854 1,273
Paid-in capital 7,134 7,137
Retained earnings, substantially restricted 6,283 6,225
Unearned compensation:
Employee stock ownership plan (575) (521)
Management recognition plan (271) (338)
Net unrealized gains (losses) on securities
available-for-sale, net of income taxes (40) 65
-------- --------
Total Stockholders' Equity 13,385 13,841
-------- --------
Total Liabilities and Stockholders'
Equity $105,041 $106,932
======== ========
</TABLE>
The accompanying notes are an integral part of these
consolidated financial statements.
<PAGE>
<PAGE>
TWIN CITY BANCORP, INC.
AND SUBSIDIARIES
Consolidated Statements of Income
(unaudited)
(in thousands)
<TABLE>
<CAPTION>
Nine Months Ended Three Months Ended
September 30, September 30,
----------------- ------------------
1996 1997 1996 1997
---- ---- ---- ----
<S> <C> <C> <C> <C>
Interest income:
Loans $4,920 $5,020 $1,679 $1,715
Mortgage-backed securities 583 667 181 225
Investment securities 432 374 148 131
Interest-bearing deposits 102 93 26 36
------ ------ ------ ------
Total interest income 6,037 6,154 2,034 2,107
------ ------ ------ ------
Interest expense:
Deposits 2,862 3,066 972 1,059
Federal Home Loan Bank advances 161 90 68 19
------ ------ ------ ------
Total interest expense 3,023 3,156 1,040 1,078
------ ------ ------ ------
Net interest income 3,014 2,998 994 1,029
Provision for loan losses 107 108 57 44
------ ------ ------ ------
Net interest income after
provision for loan losses 2,907 2,890 937 985
------ ------ ------ ------
Non-interest income:
Loan fees and service charges 234 240 86 76
Insurance commission and fees 67 45 26 17
Gain on sale of securities - 11 - 13
Gain on sale of loans 116 173 37 62
Income from rental of real estate 98 37 33 2
Other 30 23 7 7
------ ------ ------ ------
Total non-interest income 545 529 189 177
------ ------ ------ ------
Non-interest expense:
Compensation and employee
benefits 1,065 1,265 336 425
Net occupancy expense 172 195 57 67
Deposit insurance premiums 678 42 583 14
Data processing 148 165 48 57
Provision for real estate losses 45 10 15 -
Other 468 416 166 121
------ ------ ------ ------
Total non-interest expense 2,576 2,093 1,205 684
------ ------ ------ ------
Income before income taxes 876 1,326 (79) 478
Income tax expense (benefit) 331 524 (31) 188
------ ------ ------ ------
Net income (loss) $ 545 $ 802 $ (48) $ 290
====== ====== ====== ======
Dividends paid per share $ 0.41 $ 0.32 $ 0.11 $ 0.11
====== ====== ====== ======
</TABLE>
The accompanying notes are an integral part of these
consolidated financial statements.
<PAGE>
<PAGE>
TWIN CITY BANCORP, INC.
AND SUBSIDIARIES
Consolidated Statements of Cash Flows
(unaudited)
(in thousands)
<TABLE>
<CAPTION>
Nine Months Ended
September 30,
------------------
1996 1997
---- ----
<S> <C> <C>
Net cash provided (used) by
operating activities $ 992 $ 871
------- -------
Cash flows from investing activities:
Purchase of investment securities
classified as available-for-sale (2,977) (3,993)
Maturities of investment securities 2,500 2,855
Proceeds from sale of investment securities - 1,008
Purchase of certificates of deposit (98) -
Maturities of certificates of deposit 196 -
Principal payments on mortgage-backed
securities 1,983 1,874
Purchase of mortgage-backed securities
classified as available-for-sale (1,526) (1,751)
Proceeds from sale of mortgage-backed securities - 1,098
Increase in cash surrender value of
life insurance (1) (4)
Proceeds from sale of real estate - 461
Net decrease (increase) in loans originated (5,064) 4,388
Purchase of loans (1,531) (4,614)
Purchase of premises and equipment (113) (868)
------- -------
Net cash provided (used) by
investing activities (6,631) 454
------- -------
Cash flows from financing activities:
Increase (decrease) in deposits 2,498 3,935
Increase in advance payments by borrowers
for taxes and insurance 1,010 1,062
Proceeds from FHLB advances 5,600 14,300
Repayment of FHLB advances (4,400) (18,400)
Dividends paid (516) (382)
Acquisition of treasury stock (624) (104)
------- -------
Net cash provided (used) by
financing activities 3,568 411
------- -------
Net increase (decrease) in cash (2,071) 1,736
Cash at beginning of year 4,909 2,923
------- -------
Cash at end of the quarter $ 2,838 $ 4,659
======= =======
</TABLE>
(continued on next page)
<PAGE>
<PAGE>
TWIN CITY BANCORP, INC.
AND SUBSIDIARIES
Consolidated Statements of Cash Flows
(unaudited)
(in thousands)
<TABLE>
<CAPTION>
Nine Months Ended
September 30,
------------------
1996 1997
---- ----
<S> <C> <C>
Supplemental disclosures:
Noncash investing and financing activities:
Loans sold in exchange for mortgage-backed
securities $ 589 $ 2,704
======= =======
Unrealized gain (loss) on securities
available-for-sale $ (144) $ 105
======= =======
Cash paid during the period for:
Interest $ 2,995 $ 3,173
======= =======
Income taxes (net of refunds) $ 415 $ 159
======= =======
</TABLE>
The accompanying notes are an integral part of these
consolidated financial statements.
<PAGE>
<PAGE>
TWIN CITY BANCORP, INC.
AND SUBSIDIARIES
NOTES TO (UNAUDITED) CONSOLIDATED FINANCIAL STATEMENTS
Note 1. - Basis of Presentation and Principals of Consolidation
-----------------------------------------------------
The accompanying unaudited consolidated financial statements
have been prepared in accordance with generally accepted
accounting principles for interim financial information and in
accordance with the instructions to Form 10-QSB. Accordingly,
they do not include all of the disclosures required by generally
accepted accounting principles for complete financial
statements. These consolidated financial statements include the
accounts of Twin City Bancorp, Inc. and its subsidiary, Twin
City Federal Savings Bank, and the Bank's wholly owned
subsidiaries, TCF Investors, Inc. and Magnolia Investment, Inc.,
and in consolidation all significant intercompany items are
eliminated. In the opinion of management, all adjustments
necessary for a fair presentation of the results of operations
for the interim periods presented have been made. Such
adjustments were of a normal recurring nature. The results of
operations for the interim periods are not necessarily
indicative of the results that may be expected for the entire
fiscal year.
Note 2.- Cash Flow Information
---------------------
As presented in the consolidated statements of cash flows, cash
and cash equivalents include cash on hand, interest-earning
deposits in other banks, and federal funds sold. The Company
considers all highly liquid instruments with original maturities
of three months or less to be cash equivalents.
Note 3. - Retained Earnings, Substantially Restricted
-------------------------------------------
Retained earnings represents the accumulated net income of the
Company since its origination date. In connection with the
insurance of savings accounts for the Bank, the Federal Deposit
Insurance Corporation (FDIC) requires that certain minimum
amounts be restricted to absorb certain losses as specified in
the insurance of accounts regulations. Because restricted
retained earnings is not related to amounts of losses actually
anticipated, the appropriations thereto have not been charged to
income in the accompanying consolidated financial statements.
Furthermore, the use of retained earnings by the Bank is
restricted by certain requirements of the Internal Revenue Code.
There are further restrictions on retained earnings directed by
the Office of Thrift Supervision where by the Bank is subject to
maintain a minimum amount of regulatory capital as well as a
liquidation account for the benefit of eligible account holders
who continue to maintain their accounts at the Bank after the
conversion.
Note 4.- Stock Option Plan
-----------------
In 1995, the Company adopted a stock option plan for the benefit
of directors, officers, and other key employees of the Company.
The number of shares of common stock authorized under the stock
option and incentive plan was 134,760, as adjusted for the
three-for-two stock split. The plan provides for incentive
options for officers and employees and non-incentive options for
directors. The plan is administered by a committee of at least
three directors of the Company. The option exercise price
cannot be less than the fair value of the underlying common
stock as of the date of the option grant, and the maximum option
term cannot exceed ten years. As of September 30, 1997, 33,690
non-incentive stock options have been granted to directors and
become exercisable on a cumulative basis in equal installments
over a five year period. The incentive stock options awarded to
officers and other key employees totalled 97,482 at September
30, 1997 with 94,332 becoming exercisable on a cumulative basis
in equal installments over a five year period, and 3,150
exercisable upon the date of option grant. As of September 30,
1997, 131,172 options have been granted, of which none have been
exercised. Options totaling 128,022 were granted with an
exercise price of $9.34 per share, 2,250 were granted with an
exercise price of $11.25 per share and the remaining 900 at
$11.67 per share. As of September 30, 1997, 54,359 options are
exercisable.
<PAGE>
<PAGE>
TWIN CITY BANCORP, INC.
AND SUBSIDIARIES
NOTES TO (UNAUDITED) CONSOLIDATED FINANCIAL STATEMENTS
Note 5.- Management Recognition Plan
---------------------------
In 1995, the Company established a management recognition plan
("MRP") under which 53,904 shares of common stock, as adjusted
for the three-for-two stock split, were awarded to participants.
The plan share awards were granted to certain employees and
officers of the Company who began vesting on May 24, 1996 and be
fully vested on May 24, 2000. Compensation expenses, in the
amount of the fair value of the common stock at the date plan
shares are purchased, will be recognized during the periods the
participants become vested. As of September 30, 1997, 53,904
shares of common stock had been purchased to fund the MRP. The
unamortized balance of unearned compensation is reflected as a
reduction of stockholders' equity. For the nine months and
quarter ended September 30, 1997, $92,000 and $31,000 have been
recognized as compensation expense, respectively.
Note 6.- Stockholders' Equity
--------------------
On August 11, 1997, the board of directors approved a
three-for-two common stock split which was paid on or about
September 8, 1997 to shareholders of record as of August 25,
1997. All references to number of shares and per share amounts
in the financial statements reflect the stock split.
<PAGE>
<PAGE>
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations
- ----------------------------------------------------------
The Company's total consolidated assets increased $1.9
million, or 1.8% to $106.9 million at September 30, 1997 from
$105.0 million at December 31, 1996. Interest-earning deposits
and federal funds increased $1.2 million as the Company has
experienced an increase in net cash flows. Net loans receivable
decreased $2.7 million or 3.5% from $78.2 million at December
31, 1996 to $75.4 million at September 30, 1997. The Company
originated 189 mortgage loans during the nine months ended
September 30, 1997 as compared to 245 originations during the
nine months ended September 30, 1996. The decrease in 1997 over
1996 was due to a general increase in the prevailing market
rates for the Company's mortgage products in the first quarter
of 1997. The Company has sold the majority of its fixed-rate
originations during the nine months ended September 30, 1997 to
the Federal Home Loan Mortgage Corporation (FHLMC), servicing
retained and without recourse. Total real estate loans amounted
to $49.8 million at September 30, 1997 as compared to $53.6
million at December 31, 1996. Consumer/commercial loans
increased 3.4%, from $26.1 million at December 31, 1996 to $27.0
million at September 30, 1997. The Company's portfolio of
investment securities increased $160,000 or 1.9% from $8.4
million at December 31, 1996 to $8.5 million at September 30,
1997. The Company's portfolio of mortgage-backed securities
increased $1.6 million or 13.9% from $11.6 million at December
31, 1996 to $13.3 million at September 30, 1997. The Company's
investment in premises and equipment, net of accumulated
depreciation increased $750,000 or 42.4% from $1.8 million at
December 31, 1996 to $2.5 million at September 30, 1997. During
the nine months ended September 30, 1997, the Company completed
extensive improvements to its Volunteer Parkway branch in
Bristol, Tennessee. The interior of the branch has being
upgraded along with an expansion of the under-roof-area.
Improvements to traffic circulation and an increase in the
number of drive-through lanes, and the installation of an
automatic teller machine have also been completed. Management
believes that these renovations will result in improved customer
service and convenience and will not have an adverse material
effect to the Company's financial condition or results of
operations. Real estate, net decreased $143,000 from $233,000
at December 31, 1996 to $90,000 at September 30, 1997. The
decrease was primarily attributable to the sale of the Company's
commercial office building in Knoxville, Tennessee for a gross
sales price of $250,000 and accordingly, the Company recognized
a gain on the sale of the building of approximately $17,000.
Deposits increased $3.9 million or 4.6% from $85.7 million
at December 31, 1996 to $89.6 million at September 30, 1997.
During the nine months ended September 30, 1997, the Company
secured governmental deposits of approximately $4.4 million.
Federal Home Loan Bank advances decreased $4.1 million at
September 30, 1997 from December 31, 1996.
Total stockholders' equity has increased $456,000, or 3.4%
from $13.4 million at December 31, 1996 to $13.8 million at
September 30, 1997. The Company posted net income of $802,000
for the nine months ended September 30, 1997 while paying
dividends totaling $0.32 per share of common stock outstanding,
or $382,000. During the nine months ended September 30, 1997,
management pursued further funding for the Company's Management
Recognition Plan (MRP) by purchasing 10,092 shares of common
stock at a total purchase price of $159,000, while recognizing
an expense of $92,000 resulting in a net increase of $67,000 in
unearned compensation for the MRP. The Company, in accordance
with SFAS No. 115, has classified its entire portfolio of
investment and mortgage-backed securities as available-for-sale.
Net unrealized gains and losses on securities available-for-sale
are reported as a component of stockholders' equity. At
September 30, 1997, the Company reported net unrealized gains on
securities available-for-sale, net of income taxes, of $65,000
as compared to net unrealized losses on securities
available-for-sale, net of income taxes, of $40,000 at December
31, 1996. On August 11, 1997, the Company's board of directors
approved a three-for-two stock split. Accordingly, on or about
September 8, 1997, 426,713 shares of common stock were issued to
stockholders of record as of August 25, 1997 and $427,000 was
reclassified from retained earnings to common stock. In
addition, the Company has in place a program to possibly
repurchase up to 64,011, or approximately 5%, of its outstanding
shares. As of September 30, 1997, the Company had repurchased
7,750 shares at an average price of $13.41 per share.
Net interest income for the nine months ended September 30,
1997 decreased $16,000 from the nine months ended September 30,
1996, and for the three months ended September 30, 1997
increased $35,000 as compared to the three months ended
September 30, 1996. The decrease was primarily attributable to
a decrease in the interest rate spread which decreased from
3.55% for the nine
<PAGE>
<PAGE>
months ended September 30, 1996 to 3.49% for the nine months
ended September 30, 1997. The increase was attritutable to an
increase in the interest rate spread which increased from 3.43%
for the three months ended September 30, 1996 to 3.57% for the
three months ended September 30, 1997. The net interest margin
decreased from 4.07% for the nine months ended September 30,
1996 to 3.97% for the nine months ended September 30, 1997 and
increased from 3.92% for the three months ended September 30,
1996 to 4.06% for the three months ended September 30, 1997.
The average yield on interest-earning assets decreased from
8.15% for the nine months ended September 30, 1996 to 8.14% for
the nine months ended September 30, 1997 and increased 29 basis
points from 8.03% for the three months ended September 30, 1996
to 8.32% for the three months ended September 30, 1997. The
average cost on interest-bearing liabilities increased from
4.60% for the nine months ended September 30, 1996 to 4.65% for
the nine months ended September 30, 1997 and increased from
4.60% for the three months ended September 30, 1996 to 4.75% for
the three months ended September 30, 1997. The average balance
of interest-earning assets was $98.8 million for the nine months
ended September 30, 1996 as compared to $100.7 million for the
nine months ended September 30, 1997. The average balance of
interest-bearing liabilities was $87.6 million for the nine
months ended September 30, 1996 as compared to $90.4 million for
the nine months ended September 30, 1997 and was $90.4 million
for the three months ended September 30, 1996 as compared to
$93.4 million for the three months ended September 30, 1997.
The provisions for loan losses amounted to $107,000,
$108,000, $57,000 and $44,000 for the nine months and three
months ended September 30, 1996 and 1997, respectively. At
September 30, 1997, management reviewed the allowance for loan
losses in relation to the Company's performance with past
collections and charge offs, management's experience with the
loan portfolio, and observations of the general economic climate
and loan loss expectations. From this review and analysis and
based on management's experience and judgement in managing the
loan portfolio, it was determined that the allowance for loan
losses needed to be $149,000 and therefore a $44,000 provision
was recorded for the quarter ended September 30, 1997. At
September 30, 1997 the allowance represented 173% of total loans
past due more than ninety days.
Non-interest income decreased $16,000 from $545,000 for the
nine months ended September 30, 1996 to $529,000 for the nine
months ended September 30, 1997 and decreased $12,000 from
$189,000 for the three months ended September 30, 1996 to
$177,000 for the three months ended September 30, 1997. For the
nine months ended September 30, 1997 loan fees and service
charges amounted to $240,000 as compared to $234,000 for the
nine months ended September 30, 1996 and amounted to $76,000 for
the three months ended September 30, 1997 as compared to $86,000
for the three months ended September 30, 1996. Gain on the sale
of fixed-rate mortgage loans to the FHLMC recognized for the
nine months ended September 30, 1996 was $116,000 as compared to
$173,000 for the nine months ended September 30, 1997 and was
$37,000 for the three months ended September 30, 1996 as
compared to $62,000 for the three months and September 30, 1997.
Insurance commission and fees was $45,000 for the nine months
ended September 30, 1997 as compared to $67,000 for the nine
months ended September 30, 1996 and was $17,000 for the three
months ended September 30, 1997 as compared to $26,000 for the
three months ended September 30, 1996. Income from rental of
real estate amounted to $37,000 for the nine months ended
September 30, 1997 as compared to $98,000 for the nine months
ended September 30, 1996 and $2,000 for the three months ended
September 30, 1997 as compared to $33,000 for the three months
ended September 30, 1996.
Non-interest expense for the nine months ended September
30, 1997 was 2.63% of average assets as compared to 3.32% for
the nine months ended September 30, 1996. Non-interest expense
decreased $483,000 from $2.6 million for the nine months ended
September 30, 1996 to $2.1 million for the nine months ended
September 30, 1997, and decreased $521,000 from $1.2 million for
the three months ended September 30, 1996 to $684,000 for the
three months ended September 30, 1997. Compensation and
employee benefits increased $200,000 from $1.1 million for the
nine months ended September 30, 1996 to $1.3 million for the
nine months ended September 30, 1997 and increased $89,000 from
$336,000 for the three months ended September 30, 1996 to
$425,000 for the three months ended September 30, 1997. The
increase for the three and nine month periods were a direct
result of normal salary and wage increases and the recognition
of additional compensation from the cost of the Company's MRP.
Deposit insurance premiums decreased $636,000 from $678,000 for
the nine months ended September 30, 1996 to $42,000 for the nine
months ended September 30, 1997 and decreased $569,000 from
$583,000 for the three months ended September 30, 1996 to
$14,000 for the three months ended September 30, 1997. Data
processing increased $17,000 from $148,000 for the nine months
ended September 30, 1996 to $165,000 for the
<PAGE>
<PAGE>
nine months ended September 30,1997. Other expense decreased
$52,000 from $468,000 for the nine months ended September 30,
1996 to $416,000 for the nine months ended September 30, 1997
and decreased $45,000 from $166,000 for the three months ended
September 30, 1996 to $121,000 for the three months ended
September 30, 1997 as management has attempted to control its
miscellaneous costs of doing business in recent years.
<PAGE>
<PAGE>
PART II. OTHER INFORMATION
Item 1. Legal Proceedings
-----------------
From time to time, the Company and any subsidiary may be a party
to various legal proceedings incident to its or their business.
At September 30, 1997, there were no legal proceedings to which
the Company or any subsidiary was a party, or to which of any of
their property was subject, which were expected by management to
result in a material loss.
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
-----------------
None
(continued on next page.)<PAGE>
<PAGE>
Item 6. Exhibits and Reports on Form 8-K
--------------------------------
The following exhibits are filed as a part of this
report:
3.1(1) Charter of Twin City Bancorp, Inc.
3.2(1) Bylaws of Twin City Bancorp, Inc.
4(1) Form of Common Stock Certificate
10.1(1),(2) Twin City Bancorp, Inc. Incentive Compensation
Plan, as amended
10.2(1) Twin City Bancorp, Inc. Deffered Compensation
Plan
10.3(3) Employment Agreements between Twin City
Bancorp, Inc. and Twin City Federal Savings
Bank and Thad R. Bowers
10.4(3) Severance Agreements between Twin City Bancorp,
Inc. and Twin City Federal Savings Bank and
Brenda N. Baer, Judith O. Bowers, Robert C.
Glover, Michael H. Phipps, Joyce C. Rouse and
John M. Wolford
10.5(1) Twin City Federal Savings Bank Supplemental
Executive Retirement Agreement
10.6(3) Twin City Bancorp, Inc. 1995 Stock Option and
Incentive Plan
10.7(3) Twin City Bancorp, Inc. Management Recognition
Plan
27 Financial Data Schedule
______________
(1) Incorporated by reference to Company's Registration
Statement on Form S-1 No. 33-84196
(2) Incorporated by reference to Company's Quarterly Report on
Form 10-QSB for the fiscal quarter ended September 30,
1995
(3) Incorporated by reference to Company's Quarterly Report on
Form 10-QSB for the fiscal quarter ended March 31, 1995
The Corporation did not file a current report on Form 8-K during
the quarter covered by this report.
<PAGE>
<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.
Date: November 13, 1997 By /s/ Thad R. Bowers
-----------------------------
Thad R. Bowers
President and Chief Executive Officer
(Principal Executive and Financial
Officer)
Date: November 13, 1997 By /s/ Albert Joseph Vance, II
-----------------------------
Albert Joseph Vance, II
Assistant Treasurer
(Principal Accounting Officer)
<TABLE> <S> <C>
<ARTICLE> 9
<LEGEND>
This schedule contains summary financial information extracted
from the consolidated financial statements of Twin City Bancorp,
Inc. and Subsidiaries in the filing to which this schedule is an
exhibit and is qualified in its entirety by reference to such
financial statements.
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> SEP-30-1997
<CASH> 1,429
<INT-BEARING-DEPOSITS> 2,880
<FED-FUNDS-SOLD> 350
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 21,779
<INVESTMENTS-CARRYING> 0
<INVESTMENTS-MARKET> 0
<LOANS> 75,943
<ALLOWANCE> 149
<TOTAL-ASSETS> 106,932
<DEPOSITS> 89,624
<SHORT-TERM> 0
<LIABILITIES-OTHER> 2,467
<LONG-TERM> 1,000
<COMMON> 1,273
0
0
<OTHER-SE> 12,568
<TOTAL-LIABILITIES-AND-EQUITY> 106,932
<INTEREST-LOAN> 5,020
<INTEREST-INVEST> 1,041
<INTEREST-OTHER> 93
<INTEREST-TOTAL> 6,154
<INTEREST-DEPOSIT> 3,066
<INTEREST-EXPENSE> 3,156
<INTEREST-INCOME-NET> 2,998
<LOAN-LOSSES> 108
<SECURITIES-GAINS> 11
<EXPENSE-OTHER> 2,093
<INCOME-PRETAX> 1,326
<INCOME-PRE-EXTRAORDINARY> 1,326
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 802
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
<YIELD-ACTUAL> 0
<LOANS-NON> 0
<LOANS-PAST> 0
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 0
<CHARGE-OFFS> 0
<RECOVERIES> 0
<ALLOWANCE-CLOSE> 0
<ALLOWANCE-DOMESTIC> 0
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
