-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, KWMRtHSR1Kq3IgJ7BWgt4r0bAbpuwwEUxw3JsGQp8rXtNu8AO438Mg6CHNJ3h5Nf ODAwu0cl9RsLkU7mudhyPQ== 0000893847-97-000005.txt : 19971111 0000893847-97-000005.hdr.sgml : 19971111 ACCESSION NUMBER: 0000893847-97-000005 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19970930 FILED AS OF DATE: 19971110 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: EXCHANGE NATIONAL BANCSHARES INC CENTRAL INDEX KEY: 0000893847 STANDARD INDUSTRIAL CLASSIFICATION: NATIONAL COMMERCIAL BANKS [6021] IRS NUMBER: 431626350 STATE OF INCORPORATION: MI FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10QSB SEC ACT: SEC FILE NUMBER: 000-23636 FILM NUMBER: 97711103 BUSINESS ADDRESS: STREET 1: 132 E HIGH ST CITY: JEFFERSON CITY STATE: MO ZIP: 65101 BUSINESS PHONE: 3147616100 10QSB 1 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-QSB (Mark One) [X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 1997 [ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT For the transition period from ________to________ Commission File Number: 0-23636 EXCHANGE NATIONAL BANCSHARES, INC. (Exact name of small business issuer as specified in its charter) Missouri 43-1626350 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 132 East High Street, Jefferson City, Missouri 65101 (Address of principal executive offices) (573) 761-6100 (Issuer's telephone number) Check whether the issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act during the past 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. [X] Yes [ ] No As of November 3, 1997, the registrant had 718,511 shares of common stock, par value $1.00 per share, outstanding. Transitional Small Business Disclosure Format: [ ] Yes [X] No Page 1 of 29 pages Index to Exhibits located on page 28 PART I - FINANCIAL INFORMATION Item 1. Financial Statements EXCHANGE NATIONAL BANCSHARES, INC. AND SUBSIDIARY
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) September 30, December 31, 1997 1996 ____________ ____________ ASSETS Loans, net of unearned income: Commercial $ 45,458,302 40,208,276 Real estate -- construction 30,453,697 22,737,000 Real estate -- mortgage 79,049,117 76,070,524 Consumer 37,654,673 34,292,925 ____________ ____________ 192,615,789 173,308,725 Less allowance for loan losses 2,437,460 2,307,068 ____________ ____________ Loans, net 190,178,329 171,001,657 ____________ ____________ Investments in debt and equity securities: Available-for-sale, at estimated market value 51,281,431 51,023,834 Held-to-maturity, estimated market value of $30,983,966 at September 30, 1997 and $29,659,353 at December 31, 1996 30,709,687 29,599,537 ____________ ____________ Total investments in debt and equity securities 81,991,118 80,623,371 ____________ ____________ Federal funds sold 10,400,000 13,500,000 Cash and due from banks 9,147,902 11,671,641 Premises and equipment 5,150,656 3,341,650 Accrued interest receivable 2,872,477 2,543,421 Deferred income taxes 602,446 649,306 Other assets 1,277,012 748,389 ____________ ____________ $301,619,940 284,079,435 ============ ============
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CONDENSED CONSOLIDATED BALANCE SHEETS (CONTINUED) (Unaudited) September 30, December 31, 1997 1996 ____________ ____________ LIABILITIES AND STOCKHOLDERS' EQUITY Demand deposits $ 34,419,985 32,834,946 Time deposits 196,434,776 195,188,826 ____________ ____________ Total deposits 230,854,761 228,023,772 Securities sold under agreements to repurchase 22,408,559 12,303,391 Interest-bearing demand notes to U.S. Treasury 3,172,311 1,034,432 Accrued interest payable 1,153,346 1,008,681 Other liabilities 1,337,063 1,027,857 ____________ ____________ Total liabilities 258,926,040 243,398,133 ____________ ____________ Stockholders' equity: Common Stock - $1 par value; 1,500,000 shares authorized; 718,511 issued and outstanding 718,511 718,511 Surplus 1,281,489 1,281,489 Undivided profits 40,629,783 38,696,973 Unrealized holding gains (losses) on investments in debt and equity securities available-for-sale 64,117 (15,671) ____________ ____________ Total stockholders' equity 42,693,900 40,681,302 ____________ ____________ $301,619,940 284,079,435 ============ ============
See accompanying notes to condensed consolidated financial statements. EXCHANGE NATIONAL BANCSHARES, INC. AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited) Three Months Ended Nine Months Ended September 30, September 30, _______________________ _______________________ 1997 1996 1997 1996 ___________ ___________ ___________ ___________ Interest income $ 5,558,876 5,130,040 16,194,326 14,973,710 Interest expense 2,689,460 2,488,519 7,816,378 7,249,168 ___________ ___________ ___________ ___________ Net interest income 2,869,416 2,641,521 8,377,948 7,724,542 Provision for loan losses 225,000 80,000 525,000 305,000 ___________ ___________ ___________ ___________ Net interest income after provision for loan losses 2,644,416 2,561,521 7,852,948 7,419,542 Noninterest income 491,194 480,644 1,401,373 1,346,552 Noninterest expense 1,663,978 1,595,043 4,856,856 4,580,494 ___________ ___________ ___________ ___________ Income before income taxes 1,471,632 1,447,122 4,397,465 4,185,600 Income taxes 478,000 475,000 1,430,000 1,364,000 ___________ ___________ ___________ ___________ Net income $ 993,632 972,122 2,967,465 2,821,600 =========== =========== =========== =========== Earnings per common share $1.38 1.36 4.13 3.93 ===== ===== ===== ===== Dividends per share: Declared $0.50 0.44 1.44 1.26 ===== ===== ===== ===== Paid $0.50 0.44 1.38 1.20 ===== ===== ===== =====
See accompanying notes to condensed consolidated financial statements. EXCHANGE NATIONAL BANCSHARES, INC. AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) Nine Months Ended September 30, __________________________ 1997 1996 ___________ ___________ Cash flows from operating activities: Net income $ 2,967,465 2,821,600 Adjustments to reconcile net income to net cash provided by operating activities: Provision for loan losses 525,000 305,000 Depreciation expense 236,707 219,822 Net amortization of debt securities premiums and discounts 70,290 92,625 Increase in accrued interest receivable (329,056) (332,599) Decrease (increase) in other assets (528,623) 13,577 Increase in accrued interest payable 144,665 117,682 Increase in other liabilities 309,206 371,144 Net securities losses 2,813 -- Other, net 235,735 (83,521) Origination of mortgage loans for sale (15,110,871) (16,046,756) Proceeds from the sale of mortgage loans held for sale 15,110,871 16,046,756 ___________ ___________ Net cash provided by operating activities 3,634,202 3,525,330 ___________ ___________ Cash flows from investing activities: Net increase in loans (21,273,602) (24,527,552) Purchases of available-for-sale debt securities (9,450,570) (41,081,613) Purchases of held-to-maturity debt securities (5,304,517) (7,546,904) Proceeds from sales of debt securities: Available-for-sale 362,915 -- Held-to-maturity 350,000 -- Proceeds from maturities of debt securities: Available-for-sale 6,798,804 34,483,410 Held-to-maturity 2,804,166 2,454,937 Proceeds from calls of debt securities: Available-for-sale 2,125,000 1,500,000 Held-to-maturity 1,000,000 200,000 Purchases of premises and equipment (2,078,897) (800,867) Proceeds from sales of other real estate owned and repossessions 1,326,269 1,208,305 ___________ ___________ Net cash used in investing activities (23,340,432) (34,110,284) ___________ ___________
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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED) (Unaudited) Nine Months Ended September 30, __________________________ 1997 1996 ___________ ___________ Cash flows from financing activities: Net increase in demand deposits 1,585,039 3,452,560 Net increase (decrease) in interest-bearing transaction accounts (1,549,365) 1,978,031 Net increase in time deposits 2,795,315 11,185,654 Net increase in securities sold under agreements to repurchase 10,105,168 9,655,336 Net increase in interest-bearing demand notes to U.S. Treasury 2,137,879 1,719,697 Cash dividends paid (991,545) (862,213) ___________ ___________ Net cash provided by financing activities 14,082,491 27,129,065 ___________ ___________ Net decrease in cash and cash equivalents (5,623,739) (3,455,889) Cash and cash equivalents, beginning of period 25,171,641 30,057,476 ___________ ___________ Cash and cash equivalents, end of period $19,547,902 26,601,587 =========== =========== SUPPLEMENTAL SCHEDULE OF CASH FLOW INFORMATION Cash paid during period for: Interest $ 7,671,713 7,131,486 Income taxes 1,530,097 1,402,955 Other real estate and repossessions acquired in settlement of loans 1,642,121 1,225,292
See accompanying notes to condensed consolidated financial statements. EXCHANGE NATIONAL BANCSHARES, INC. AND SUBSIDIARY NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) Nine Months Ended September 30, 1997 and 1996 Exchange National Bancshares, Inc. ("Bancshares" or the "Company") is a bank holding company registered under the Bank Holding Company Act of 1956. Bancshares' activities currently are limited to ownership of the outstanding capital stock of The Exchange National Bank of Jefferson City, a national banking association. On November 3, 1997 the Company acquired 100% of the outstanding shares of common stock of Union State Bancshares, Inc. (Union), a one-bank holding company located in Clinton, Missouri. The purchase of Union was accounted for under the purchase method of accounting. The consolidated total assets and stockholders' equity of Union at September 30, 1997 were $133.0 million and $7.0 million, respectively. Earnings per share amounts are based on 718,511 weighted average shares outstanding for the three and nine month periods ended September 30, 1997 and 1996. In June 1996, the Financial Accounting Standards Board (FASB) issued Statement of Financial Accounting Standards No. 125, "Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities" (SFAS 125). SFAS 125 provides accounting and reporting standards for transfers and servicing of financial assets and extinguishments of liabilities based on consistent application of a financial components approach that focuses on control. It distinguishes transfers of financial assets that are sales from transfers that are secured borrowings. Under the financial components approach, after a transfer of financial assets, an entity recognizes all financial and servicing assets it controls and liabilities it has incurred and derecognizes assets it no longer controls and liabilities that have been extinguished. The financial components approach focuses on the assets and liabilities that exist after the transfer. Many of these assets and liabilities are components of financial assets that existed prior to the transfer. If a transfer does not meet the criteria for a sale, the transfer is accounted for as a secured borrowing with pledge of collateral. SFAS 125 is effective for transfers and servicing of financial assets and extinguishments of liabilities occurring after December 31, 1996, and has been applied prospectively. Also, the extension of the SFAS 115 approach to certain nonsecurity financial assets and the amendment to SFAS 115 was effective for financial assets held on or acquired after January 1, 1997. The adoption of SFAS 125 did not have a material impact on the Company's consolidated financial statements. In February 1997, the FASB issued Statement of Financial Accounting Standards No. 128, "Earnings per Share" (SFAS 128) which establishes standards for computing and presenting earnings per share (EPS). SFAS 128 simplifies standards for computing EPS and makes them comparable to international standards. It replaces the presentation of primary EPS with a presentation of basic EPS. It also requires dual presentation of basic and diluted EPS on the face of the income statement for all entities with complex capital structures and requires a reconciliation of the components of basic and diluted EPS. Basic EPS excludes dilution and is computed by dividing income available to common shareholders by the weighted-average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the Company. SFAS 128 is effective for financial statements issued for periods ending after December 15, 1997, including interim periods, and requires restatement of all prior-period EPS data presented. The Company does not believe the adoption of SFAS 128 will have a material effect on its financial condition or results of operations. In June 1997, the FASB issued Statement of Financial Accounting Standards No. 130, "Reporting Comprehensive Income" (SFAS 130) which establishes standards for reporting and display of comprehensive income and its components in a full set of general purpose financial statements. It does not, however, specify when to recognize or how to measure items that make up comprehensive income. SFAS 130 was issued to address concerns over the practice of reporting elements of comprehensive income directly in equity. SFAS 130 requires all items that are required to be recognized under accounting standards as components of comprehensive income be reported in a financial statement that is displayed in equal prominence with the other financial statements. It does not require a specific format for that financial statement, but requires that an enterprise display an amount representing total comprehensive income for the period in that financial statement. Enterprises are required to classify items of "other comprehensive income" by their nature in the financial statements and display the balance of other comprehensive income separately in the equity section of a statement of financial position. It does not require per share amounts of comprehensive income to be disclosed. SFAS 130 is applicable to all entities that provide a full set of financial statements consisting of a statement of financial position, results of operations, and cash flows. SFAS 130 is effective for both interim and annual periods beginning after December 15, 1997. Earlier application is permitted. Comparative financial statements provided for earlier periods are required to be reclassified to reflect the provisions of this statement. Publicly traded enterprises that issue condensed financial statements for interim periods are required to report a total for comprehensive income in those financial statements. The Company does not believe the adoption of SFAS 130 will have a material effect on its financial condition or results of operations. The accompanying condensed consolidated financial statements include all adjustments which in the opinion of management are necessary in order to make those statements not misleading. Certain amounts in the 1996 condensed consolidated financial statements have been reclassified to conform with the 1997 condensed consolidated presentation. Such reclassifications have no effect on previously reported net income. Operating results for the period ended September 30, 1997 are not necessarily indicative of the results that may be expected for the year ending December 31, 1997. It is suggested that these condensed consolidated interim financial statements be read in conjunction with the Company's audited consolidated financial statements included in its 1996 Annual Report to Shareholders under the caption "Consolidated Financial Statements" and incorporated by reference into its Annual Report on Form 10-KSB for the year ended December 31, 1996 as Exhibit 13. Item 2. Management's Discussion and Analysis EXCEPT FOR THE HISTORICAL INFORMATION CONTAINED HEREIN, THE STATEMENTS MADE IN THIS REPORT ON FORM 10-QSB ARE FORWARD-LOOKING STATEMENTS THAT INVOLVE RISKS AND UNCERTAINTIES. THE COMPANY'S ACTUAL RESULTS, FINANCIAL CONDITION, OR BUSINESS COULD DIFFER MATERIALLY FROM ITS HISTORICAL RESULTS, FINANCIAL CONDITION, OR BUSINESS, OR THE RESULTS OF OPERATIONS, FINANCIAL CONDITION, OR BUSINESS CONTEMPLATED BY SUCH FORWARD-LOOKING STATEMENTS. FACTORS THAT COULD CAUSE OR CONTRIBUTE TO SUCH DIFFERENCES INCLUDE, BUT ARE NOT LIMITED TO, THOSE DISCUSSED UNDER THE CAPTION "FACTORS THAT MAY AFFECT FUTURE RESULTS OF OPERATIONS, FINANCIAL CONDITION, OR BUSINESS," IN THE COMPANY'S ANNUAL REPORT ON FORM 10-KSB FOR THE YEAR ENDED DECEMBER 31, 1996, AS WELL AS THOSE DISCUSSED ELSEWHERE IN THE COMPANY'S REPORTS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION. Net income for the three months ended September 30, 1997 of $993,000 increased $21,000 when compared to the third quarter of 1996. Earnings per common share for the third quarter of 1997 of $1.38 increased 2 cents or 1.5% when compared to the third quarter of 1996. Net income for the nine months ended September 30, 1997 of $2,967,000 increased $145,000 when compared to the first nine months of 1996. Earnings per common share for the nine months ended September 30, 1997 of $4.13 increased 20 cents or 5.1% when compared to the first nine months of 1996. The following table provides a comparison of fully taxable equivalent earnings, including adjustments to interest income and tax expense for interest on tax-exempt loans and investments.
(Dollars expressed in thousands) Three Months Nine Months Ended Ended September 30, September 30, _______________ _______________ 1997 1996 1997 1996 _______ _______ _______ _______ Interest income $ 5,558 5,130 16,194 14,974 Fully taxable equivalent (FTE) adjustment 104 93 296 273 _______ _______ _______ _______ Interest income (FTE basis) 5,662 5,223 16,490 15,247 Interest expense 2,689 2,488 7,816 7,249 _______ _______ _______ _______ Net interest income (FTE basis) 2,973 2,735 8,674 7,998 Provision for loan losses 225 80 525 305 _______ _______ _______ _______ Net interest income after provision for loan losses (FTE basis) 2,748 2,655 8,149 7,693 Noninterest income 491 480 1 401 1,347 Noninterest expense 1,664 1,595 4,857 4,581 _______ _______ _______ _______ Earnings before income taxes (FTE basis) 1,575 1,540 4,693 4,459 _______ _______ _______ _______ Income taxes 478 475 1,430 1,364 FTE adjustment 104 93 296 273 _______ _______ _______ _______ Income taxes (FTE basis) 582 568 1,726 1,637 _______ _______ _______ _______ Net income $ 993 972 2,967 2,822 ======= ======= ======= =======
THREE MONTHS ENDED SEPTEMBER 30, 1997 COMPARED TO THREE MONTHS ENDED SEPTEMBER 30, 1996 Net interest income on a fully taxable equivalent basis increased $238,000 or 8.7% to $2,973,000 or 4.26% of average earning assets for the third quarter of 1997 compared to $2,735,000 or 4.13% of average earning assets for the same period of 1996. The provision for possible loan losses for the three months ended September 30, 1997 was $225,000 compared to $80,000 for the same period of 1996. Noninterest income and noninterest expense for the three month periods ended September 30, 1997 and 1996 were as follows:
(Dollars expressed in thousands) Three Months Ended September 30, Increase (decrease) ________________ __________________ 1997 1996 Amount % _______ _______ ________ ________ Noninterest Income Service charges on deposit accounts $ 179 180 (1) (0.6)% Trust department income 59 75 (16) (21.3) Mortgage loan servicing fees 81 74 7 9.5 Gain on sales of mortgage loans 41 25 16 64.0 Credit card fees 92 89 3 3.4 Other 39 37 2 5.4 _______ _______ _______ $ 491 480 11 2.3 % ======= ======= ======= Noninterest Expense Salaries, wages, and employee benefits $ 854 850 4 0.5 % Occupancy expense 87 86 1 1.2 Furniture and equipment expense 121 112 9 8.0 FDIC insurance assessment 7 1 6 600.0 Advertising and promotion 103 132 (29) (22.0) Postage, printing, and supplies 83 88 (5) (5.7) Legal, examination, and professional fees 55 42 13 31.0 Credit card expenses 80 77 3 3.9 Credit investigation and loan collection expenses 52 33 19 57.6 Other 222 174 48 27.6 _______ _______ _______ $ 1,664 1,595 69 4.3 % ======= ======= =======
Noninterest income increased $11,000 or 2.3% to $491,000 for the third quarter of 1997 compared to $480,000 for the same period of 1996. Increases in mortgage loan servicing fees and gain on sales of mortgage loans both reflected increased volume. Loans originated and sold to the secondary market increased from approximately $3,900,000 for the third quarter of 1996 to approximately $6,000,000 for the third quarter of 1997. Trust department income decreased $16,000 due to a lesser volume of estate distribution fees. Noninterest expense increased $69,000 or 4.3% to $1,664,000 for the third quarter of 1997 compared to $1,595,000 for the third quarter of 1996. Salaries, wages, and employee benefits, the largest component of noninterest expense, increased only $4,000 or 0.5%. That increase reflected merit increases of approximately 4.0% which were offset in part by decreases in officer staff and employee health insurance costs. The decrease in employee health insurance costs reflected a two month premium holiday due to favorable claims experience. Other noninterest expense increased $48,000 or 27.6% due primarily to additional travel expense and board of directors meetings relating to the recently completed acquisition, and to returned deposits which resulted in approximately $11,000 in losses. Credit investigation and loan collection expenses increased $19,000 or 57.6% due primarily to an increase in reposession costs, and legal, examination, and professional fees increased $13,000 or 31.0% due primarily to legal and accounting costs associated with an unsuccessful bids to purchase additional facilities being sold by a competitor. The $9,000 or 8.0% increase in furniture and equipment expense primarily reflected an increase in maintenance contracts which was offset in part by a decrease in other equipment repairs. The $29,000 or 22.0% decrease advertising and promotion primarily reflects timing differences in the payment of those expenses from quarter to quarter. Income taxes as a percentage of earnings before income taxes as reported in the condensed consolidated financial statements was 32.5% for the third quarter of 1997 compared to 32.8% for the third quarter of 1996. After adding a fully taxable equivalent adjustment to both income taxes and earnings before income taxes for tax exempt income on loans and investment securities, the fully taxable equivalent ratios of income taxes as a percentage of earnings before income taxes were 37.0% for the third quarter of 1997 and 36.9% for the third quarter of 1996. NINE MONTHS ENDED SEPTEMBER 30, 1997 COMPARED TO NINE MONTHS ENDED SEPTEMBER 30, 1996 Net interest income on a fully taxable equivalent basis increased $676,000 or 8.5% to $8,674,000 or 4.24% of average earning assets for the first nine months of 1997 compared to $7,998,000 or 4.12% of average earning assets for the same period of 1996. The provision for possible loan losses for the nine months ended September 30, 1997 was $525,000 compared to $305,000 for the same period of 1996. Noninterest income and noninterest expense for the nine month periods ended September 30, 1997 and 1996 were as follows:
(Dollars expressed in thousands) Nine Months Ended September 30, Increase (decrease) ________________ __________________ 1997 1996 Amount % _______ _______ ________ ________ Noninterest Income Service charges on deposit accounts $ 526 512 14 2.7 % Trust department income 151 167 (16) (9.6) Mortgage loan servicing fees 236 219 17 7.8 Gain on sales of mortgage loans 94 87 7 8.0 Net loss on sales and calls of debt securities (3) -- (3) -- Credit card fees 272 254 18 7.1 Other 125 108 17 15.7 _______ _______ _______ $ 1,401 1,347 54 4.0 % ======= ======= ======= Noninterest Expense Salaries, wages, and employee benefits $ 2,599 2,558 41 1.6 % Occupancy expense 246 225 21 9.3 Furniture and equipment expense 391 319 72 22.6 FDIC insurance assessment 21 2 19 950.0 Advertising and promotion 245 246 (1) (0.4) Postage, printing, and supplies 255 248 7 2.8 Legal, examination, and professional fees 200 160 40 25.0 Credit card expenses 231 221 10 4.5 Credit investigation and loan collection expenses 117 79 38 48.1 Other 552 523 29 5.5 _______ _______ _______ $ 4,857 4,581 276 6.0 % ======= ======= =======
Noninterest income increased $54,000 or 4.0% to $1,401,000 for the first nine months of 1997 compared to $1,347,000 for the same period of 1996. Increases in service charges on deposit accounts, mortgage loan servicing fees, credit card fees, and other noninterest income all reflected increased volume. The average volume of mortgage loans serviced increased from approximately $69,800,000 for the first nine months of 1996 to approximately $78,400,000 for the first nine months of 1997. Loans originated and sold to the secondary market decreased from approximately $16,000,000 for the first nine months of 1996 to approximately $15,100,000 for the first nine months of 1997. Trust department income decreased $16,000 due to a lesser volume of estate distribution fees. Net loss on sales and calls of debt securities reflected a $3,600 loss on the partial call of an available-for-sale municipal security which was offset in part by an $800 net gain on the sale of several available-for-sale mortgage-backed securities pools which had paid down to insignificant remaining balances. A municipal security classified as held-to-maturity was inadvertently sold in September 1997 at no gain or loss due to confusion about its classification resulting from a conversion of the investment accounting system. Noninterest expense increased $276,000 or 6.0% to $4,857,000 for the first nine months of 1997 compared to $4,581,000 for the first nine months of 1996. The $72,000 or 22.6% increase in furniture and equipment expense reflects costs associated with the new East Bank building, including the write-off of items no longer being used, plus increases in depreciation expense and maintenance agreements in connection with expanded data processing capabilities. The $41,000 or 1.6% increase in salaries, wages, and employee benefits reflected merit increases of approximately 4.0% plus increases in profit sharing expense and payroll taxes. Those increases were partially offset by a decrease in officer staff and recruiting expense. The $40,000 or 25.0% increase in legal, examination, and professional fees reflects indirect costs associated with the recently completed acquisition plus legal and accounting costs associated with unsuccessful bids to purchase additional facilities being sold by a competitor. Credit investigation and loan collection expenses increased $38,000 or 48.1% due primarily to an increase in reposession costs, while the $21,000 or 9.3% increase in occupancy expense primarily reflected increased costs associated with the new East Bank building. The $19,000 increase in FDIC insurance assessment reflects the fact that in 1997 the Company is now assessed by the Financing Corporation for Savings Association Insurance Fund at an annual rate 1.296% per $100 of deposits. For the first nine months of 1996 the Company was assessed at the minimum FDIC assessment level of $1,500 in effect at that time. Income taxes as a percentage of earnings before income taxes as reported in the condensed consolidated financial statements was 32.5% for the first nine months of 1997 and 32.6% the first nine months of 1996. After adding a fully taxable equivalent adjustment to both income taxes and earnings before income taxes for tax exempt income on loans and investment securities, the fully taxable equivalent ratios of income taxes as a percentage of earnings before income taxes were 36.8% for the first nine months of 1997 and 36.7% for the first nine months of 1996. NET INTEREST INCOME The increases in fully taxable equivalent net interest income for the three and nine month periods ended September 30, 1997 primarily reflect growth in average total loans outstanding. The following tables present average balance sheets, net interest income, average yields of earning assets, and average costs of interest bearing liabilities on a fully taxable equivalent basis for the three and nine month periods ended September 30, 1997 and 1996.
(Dollars expressed in thousands) Three Months Ended Three Months Ended September 30, 1997 September 30, 1996 ___________________________ ___________________________ Interest Rate Interest Rate Average Income/ Earned/ Average Income/ Earned/ Balance Expense/1/ Paid/1/ Balance Expense/1/ Paid/1/ ________ __________ _______ ________ __________ _______ ASSETS Loans:/2/ Commercial $ 45,125 $1,036 9.11% $ 40,654 $ 915 8.95% Real estate 107,951 2,396 8.81 91,790 2,035 8.82 Consumer 36,672 838 9.07 33,758 795 9.37 Money market/3/ 587 8 5.41 7,352 101 5.47 Investment securities:/4/ U.S. Treasury and U.S. Government agencies 62,752 942 5.96 57,406 836 5.79 State and municipal 17,813 358 7.97 16,250 314 7.69 Other 1,112 20 7.14 3,687 60 6.47 Federal funds sold 4,508 63 5.54 12,435 166 5.31 Interest-bearing deposits 61 1 6.50 39 1 10.20 ________ ______ ________ ______ Total interest earning assets 276,581 5,662 8.12 263,371 5,223 7.89 All other assets 18,595 16,837 Allowance for loan losses (2,327) (2,304) ________ ________ Total assets $292,849 $277,904 ======== ========
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Three Months Ended Three Months Ended September 30, 1997 September 30, 1996 ___________________________ ___________________________ Interest Rate Interest Rate Average Income/ Earned/ Average Income/ Earned/ Balance Expense/1/ Paid/1/ Balance Expense/1/ Paid/1/ ________ __________ _______ ________ __________ _______ LIABILITIES AND STOCKHOLDERS' EQUITY NOW accounts $ 26,789 $ 180 2.67% $ 27,109 $ 181 2.66% Savings 22,475 223 3.94 22,250 220 3.93 Money market 32,572 343 4.18 31,766 335 4.20 Deposits of $100,000 and over 13,159 180 5.43 10,214 140 5.45 Other time deposits 101,913 1,484 5.78 95,283 1,392 5.81 ________ ______ ________ ______ Total time deposits 196,908 2,410 4.86 186,622 2,268 4.83 Securities sold under agreements to repurchase 18,933 267 5.59 17,770 210 4.70 Interest-bearing demand notes to U.S. Treasury 1,092 12 4.36 846 10 4.70 ________ ______ ________ ______ Total interest- bearing liabilities 216,933 2,689 4.92 205,238 2,488 4.82 ______ ______ Demand deposits 31,562 31,318 Other liabilities 1,993 1,827 ________ ________ Total liabilities 250,488 238,383 Stockholders' equity 42,361 39,521 ________ ________ Total liabilities and stockholders' equity $292,849 $277,904 ======== ======== Net interest income $ 2,973 $ 2,735 ======= ======= Net interest margin/5/ 4.26% 4.13% __________ ==== ==== /1/ Interest income and yields are presented on a fully taxable equivalent basis using the Federal statutory income tax rate of 34%, net of nondeductible interest expense. Such adjustments were $104,000 in 1997 and $93,000 in 1996. /2/ Non-accruing loans are included in the average amounts outstanding. /3/ Includes banker's acceptances and commercial paper. /4/ Average balances based on amortized cost. /5/ Net interest income divided by average total interest earning assets.
(Dollars expressed in thousands) Nine Months Ended Nine Months Ended September 30, 1997 September 30, 1996 ___________________________ ___________________________ Interest Rate Interest Rate Average Income/ Earned/ Average Income/ Earned/ Balance Expense/1/ Paid/1/ Balance Expense/1/ Paid/1/ ________ __________ _______ ________ __________ _______ ASSETS Loans:/2/ Commercial $ 43,955 $2,981 9.07% $ 39,788 $2,691 9.03% Real estate 104,377 6,844 8.77 88,078 5,866 8.90 Consumer 35,251 2,409 9.14 32,576 2,266 9.29 Money market/3/ 1,159 47 5.42 2,469 101 5.46 Investment securities:/4/ U.S. Treasury and U.S. Government agencies 63,600 2,857 6.01 59,993 2,560 5.70 State and municipal 17,298 1,015 7.85 15,567 907 7.78 Other 1,671 87 6.96 3,366 161 6.39 Federal funds sold 6,085 248 5.45 17,445 694 5.31 Interest-bearing deposits 53 2 5.05 24 1 5.57 ________ ______ ________ ______ Total interest earning assets 273,449 16,490 8.06 259,306 15,247 7.85 All other assets 18,487 16,692 Allowance for loan losses (2,330) (2,266) ________ ________ Total assets $289,606 $273,732 ======== ========
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Nine Months Ended Nine Months Ended September 30, 1997 September 30, 1996 ___________________________ ___________________________ Interest Rate Interest Rate Average Income/ Earned/ Average Income/ Earned/ Balance Expense/1/ Paid/1/ Balance Expense/1/ Paid/1/ ________ __________ _______ ________ __________ _______ LIABILITIES AND STOCKHOLDERS' EQUITY NOW accounts $ 27,838 $ 555 2.67% $ 28,067 $ 561 2.67% Savings 22,648 669 3.95 21,993 649 3.94 Money market 32,368 1,010 4.17 31,310 981 4.19 Deposits of $100,000 and over 13,451 548 5.45 8,580 346 5.39 Other time deposits 100,286 4,309 5.74 93,173 4,057 5.82 ________ ______ ________ ______ Total time deposits 196,591 7,091 4.82 183,123 6,594 4.81 Securities sold under agreements to repurchase 17,311 691 5.34 17,751 625 4.70 Interest-bearing demand notes to U.S. Treasury 1,037 34 4.38 778 30 5.15 ________ ______ ________ ______ Total interest- bearing liabilities 214,939 7,816 4.86 201,652 7,249 4.80 ______ ______ Demand deposits 31,037 31,207 Other liabilities 1,939 1,760 ________ ________ Total liabilities 247,915 234,619 Stockholders' equity 41,691 39,113 ________ ________ Total liabilities and stockholders' equity $289,606 $273,732 ======== ======== Net interest income $ 8,674 $ 7,998 ======= ======= Net interest margin/5/ 4.24% 4.12% __________ ==== ==== /1/ Interest income and yields are presented on a fully taxable equivalent basis using the Federal statutory income tax rate of 34%, net of nondeductible interest expense. Such adjustments were $296,000 in 1997 and $273,000 in 1996. /2/ Non-accruing loans are included in the average amounts outstanding. /3/ Includes banker's acceptances and commercial paper. /4/ Average balances based on amortized cost. /5/ Net interest income divided by average total interest earning assets.
The following tables present, on a fully taxable equivalent basis, analyses of changes in net interest income resulting from changes in average volumes of earning assets and interest bearing liabilities and average rates earned and paid. The change in interest due to the combined rate/volume variance has been allocated to rate and volume changes in proportion to the absolute dollar amounts of change in each.
(Dollars expressed in thousands) Three Months Ended September 30, 1997 Compared to Three Months Ended September 30, 1996 _______________________________ Change due to Total ____________________ Change Volume Rate ________ ________ _________ Interest income on a fully taxable equivalent basis: Loans: Commercial $ 121 103 18 Real estate 361 359 2 Consumer 43 68 (25) Money market (93) (92) (1) Investment securities: U.S. Treasury and U.S. Government agencies 106 79 27 State and municipal 44 31 13 Other (40) (45) 5 Federal funds sold (103) (111) 8 Interest-bearing deposits -- -- -- _______ _______ ________ Total interest income 439 392 47 Interest expense: NOW accounts (1) (2) 1 Savings 3 2 1 Money market 8 8 -- Deposits of $100,000 and over 40 40 -- Other time deposits 92 97 (5) Securities sold under agreements to repurchase 57 15 42 Interest-bearing demand notes to U.S. Treasury 2 3 (1) _______ _______ ________ Total interest expense 201 163 38 _______ _______ ________ Net interest income on a fully taxable equivalent basis $ 238 229 9 ======= ======= ========
(Dollars expressed in thousands) Nine Months Ended September 30, 1997 Compared to Nine Months Ended September 30, 1996 _______________________________ Change due to Total ____________________ Change Volume Rate ________ ________ _________ Interest income on a fully taxable equivalent basis: Loans: Commercial $ 290 283 7 Real estate 978 1,070 (92) Consumer 143 184 (41) Money market (54) (53) (1) Investment securities: U.S. Treasury and U.S. Government agencies 297 158 139 State and municipal 108 102 6 Other (74) (87) 13 Federal funds sold (446) (463) 17 Interest-bearing deposits 1 1 -- _______ _______ ________ Total interest income 1,243 1,195 48 Interest expense: NOW accounts (6) (5) (1) Savings 20 19 1 Money market 29 33 (4) Deposits of $100,000 and over 202 198 4 Other time deposits 252 307 (55) Securities sold under agreements to repurchase 66 (16) 82 Interest-bearing demand notes to U.S. Treasury 4 9 (5) _______ _______ ________ Total interest expense 567 545 22 _______ _______ ________ Net interest income on a fully taxable equivalent basis $ 676 650 26 ======= ======= ========
Provision and Allowance for Loan Losses The provision for loan losses is based on management's evaluation of the loan portfolio in light of national and local economic conditions, changes in the composition and volume of the loan portfolio, changes in the volume of past due and nonaccrual loans, and other relevant factors. The allowance for loan losses which is reported as a deduction from loans, is available for loan charge-offs. The allowance is increased by the provision charged to expense and is reduced by loan charge-offs net of loan recoveries. Management formally reviews all loans in excess of certain dollar amounts (periodically established) at least annually. In addition, on a monthly basis, management reviews past due, "classified", and "watch list" loans in order to classify or reclassify loans as "loans requiring attention," "substandard," "doubtful," or "loss". During that review, management also determines what loans should be considered to be "impaired". Management believes, but there can be no assurance, that these procedures keep management informed of possible problem loans. Based upon these procedures, both the allowance and provision for loan losses are adjusted to maintain the allowance at a level considered adequate by management for estimated losses inherent in the loan portfolio. See additional discussion concerning nonperforming loans under "Financial Condition." The allowance for loan losses was reduced by net loan charge-offs of $85,933 for the first quarter of 1997, $270,114 for the second quarter of 1997, and $38,561 for the third quarter of 1997. That compares to net charge-offs of $26,301 for the first quarter of 1996, $75,480 for the second quarter of 1996, and $84,507 for the third quarter of 1996. The allowance for loan losses was increased by a provision charged to expense of $125,000 for the first quarter of 1997, $175,000 for the second quarter of 1997, and $225,000 for the third quarter of 1997. That compares to $90,000 for the first quarter of 1996, $135,000 for the second quarter of 1996, and $80,000 for the third quarter of 1996. The balance of the allowance for loan losses was $2,437,460 at September 30, 1997 compared to $2,307,068 at December 31, 1996 and $2,297,721 at September 30, 1996. The allowance for loan losses as a percent of outstanding loans was 1.27% at September 30, 1997 compared to 1.33% at December 31, 1996 and 1.35% at September 30, 1996. FINANCIAL CONDITION Total assets increased $17,540,505 or 6.2% to $301,619,940 at September 30, 1997 compared to $284,079,435 at December 31, 1996. Total liabilities increased $15,527,907 or 6.4% to $258,926,040 and stockholders' equity increased $2,012,598 or 4.9% to $42,693,900. Loans, net of unearned income, increased $19,307,064 or 11.1% to $192,615,789 at September 30, 1997 compared to $173,308,725 at December 31, 1996. Commercial loans increased $5,250,026 or 13.1%; Real estate construction loans increased $7,716,697 or 33.9%; real estate mortgage loans increased $2,978,593 or 3.9%; and consumer loans increased $3,361,748 or 9.8%. Nonperforming loans, defined as loans 90 days or more past due and loans on nonaccrual status, totaled $751,000 or 0.39% of total loans at September 30, 1997 compared to $1,092,000 or 0.63% of total loans at December 31, 1996. Detail of those balances plus other real estate and repossessions is as follows:
(Dollars expressed in thousands) September 30, 1997 December 31, 1996 _________________ _________________ % of % of Gross Gross Balance Loans Balance Loans _______ _____ _______ _____ Loans 90 days or more past due - Commercial $ -- --% $ 59 .03% Real Estate: Construction 18 .01 122 .07 Mortgage 55 .03 186 .11 Consumer 36 .02 27 .02 ______ ____ ______ ____ 109 .06 394 .23 ______ ____ ______ ____ Loans on nonaccrual status - Commercial 51 .03 42 .02 Real Estate: Construction 313 .16 327 .19 Mortgage 217 .11 268 .15 Consumer 61 .03 61 .04 ______ ____ ______ ____ 642 .33 698 .40 ______ ____ ______ ____ Total nonperforming loans 751 .39% 1,092 .63% Other real estate 351 ==== 22 ==== Repossessions 90 106 ______ ______ Total nonperforming assets $1,192 $1,220 ====== ======
The allowance for loan losses was 324.50% of nonperforming loans at September 30, 1997 compared to 211.26% of nonperforming loans at December 31, 1996. The September 30, 1997 balances of real estate, and consumer loans 90 days or more past due reflect two and seven loans, respectively, all of which are well secured and in the process of collection. The September 30, 1997 balances of commercial, real estate, and consumer loans on nonaccrual status reflect loans to two, five, and seven borrowers, respectively. Approximately $39,000 of the commercial loans on nonaccrual status at September 30, 1997 were 90% guaranteed by the Small Business Administration. It is the Company's policy to discontinue the accrual of interest income on loans when the full collection of interest or principal is in doubt, or when the payment of interest or principal has become contractually 90 days past due unless the obligation is both well secured and in the process of collection. A loan remains on nonaccrual status until the loan is current as to payment of both principal and interest and/or the borrower demonstrates the ability to pay and remain current. Interest on loans on nonaccrual status at September 30, 1997 and 1996, which would have been recorded under the original terms those loans, was approximately $48,000 and $62,000 for the nine months ended September 30, 1997 and 1996, respectively. Approximately $24,000 and $16,000 was actually recorded as interest income on such loans for the nine months ended September 30, 1997 and 1996, respectively. The increase in other real estate from December 31, 1996 primarily reflects real estate which was acquired by the Company in lieu of foreclosure from a borrower in the construction business. Second quarter 1997 loan losses relating to that borrower were approximately $221,000. A loan is considered "impaired" when it is probable a creditor will be unable to collect all amounts due - both principal and interest - according to the contractual terms of the loan agreement. In addition to nonaccrual loans at September 30, 1997 included in the table above, which were considered "impaired", management has identified additional loans totaling approximately $4,789,000 which are not included in the nonaccrual table above but are considered by management to be "impaired". Approximately $2,948,000 of those loans represented commercial and real estate loans to a group of borrowers that operate in an industry that has experienced some adverse economic trends due to change in that industry's regulatory environment, and approximately $1,071,000 of those loans represented a commercial real estate development which has experienced cash flow problems. Management believes that the loans are well secured and all have performed according to their contractual terms during the first nine months of 1997. Another approximately $401,000 of the $4,789,000 of "impaired" loans represented commercial and real estate loans to a commercial retail operation that has experienced cash flow problems. The remainder of loans identified by management as being "impaired" reflected commercial loans to three borrowers totaling approximately $175,000, one real estate loan totaling approximately $40,000, and thirteen consumer loans totaling approximately $154,000. The average balance of "impaired" loans for the first nine months of 1997 was approximately $5,167,000. At September 30, 1997 the allowance for loan losses on impaired loans was $242,447 compared to $277,149 at December 31, 1996. As of September 30, 1997 approximately $1,728,000 of additional loans not included in the nonaccrual table or identified by management as being "impaired" were classified by management as having potential credit problems which raised doubts as to the ability of the borrower to comply with present loan repayment terms. Of the $1,728,000 of "classified" loans at September 30, 1997, $185,000 represented three commercial loans; $1,202,000 represented eight real estate loans ranging in size from approximately $18,000 to $439,000; and $341,000 represented forty seven installment loans to individuals. Investments in debt and equity securities classified as available-for-sale increased $257,597 or 0.5% to $51,281,431 at September 30, 1997 compared to $51,023,834 at December 31, 1996. Investments classified as available-for-sale are carried at fair value. At December 31, 1996 the market valuation account for the available-for-sale investments of $24,875 decreased the amortized cost of those investments to their fair value on that date and the net after tax increase resulting from the market valuation adjustment of $15,671 was reflected as a separate negative component of stockholders' equity. During 1997, the market valuation account was increased $126,648 to a positive balance of $101,773 to reflect the fair value of available-for-sale investments at September 30, 1997 and the net after tax increase resulting from the change in the market valuation adjustment of $79,788 increased the stockholders' equity component to a positive balance of $64,117 at September 30, 1997. The increase in fair value compared to amortized cost resulted from a decrease in current market rates from December 31, 1996 to September 30, 1997. Investments in debt securities classified as held-to-maturity increased $1,110,150 or 3.8% to $30,709,687 at September 30, 1997 compared to $29,599,537 at December 31, 1996. Investments classified as held-to-maturity are carried at amortized cost. At September 30, 1997 the aggregate fair value of the Company's held-to-maturity investment portfolio was approximately $274,000 more than its aggregate carrying value. At December 31, 1996 the aggregate fair value of the held-to-maturity investment portfolio was approximately $60,000 more than its aggregate carrying value. Cash and cash equivalents, which consist of cash and due from banks and Federal funds sold, decreased $5,623,739 or 22.3% to $19,547,902 at September 30, 1997 compared to $25,171,641 at December 31, 1996. Premises and equipment increased $1,809,006 or 54.1% to $5,150,656 at September 30, 1997 compared to $3,341,650 at December 31, 1996. The increase reflected expenditures for premises and equipment of $2,078,897 less depreciation expense of $236,707 and a net loss on disposition of fixed assets of $33,184. The expenditures for premises and equipment reflected approximately $760,000 in construction costs for a permanent East Bank facility and approximately $1,117,000 in progress payments towards the renovation and expansion of the Company's main bank building located in downtown Jefferson City. During the third quarter of 1997 it was decided that the planned two story expansion project should be increased to three stories. The renovation and expansion project, which is expected to continue into 1998, is now anticipated to cost no more than $4,700,000. Total deposits increased $2,830,989 or 1.2% to $230,854,761 at September 30, 1997 compared to $228,023,772 at December 31, 1996 due to a $1,585,039 increase in demand deposits and a $1,245,950 increase in time deposits. The increase in demand deposits primarily reflected normal fluctuations. Average demand deposits decreased approximately 0.5% for the first nine months of 1997 compared to the first nine months of 1996. The increase in time deposits primarily reflected an increase in under $100,000 certificates of deposit which was offset in part by decreases in other areas. Securities sold under agreements to repurchase increased $10,105,168 to $22,408,559 at September 30, 1997 compared to $12,303,391 at December 31, 1996 due primarily to funds obtained from a local hospital, and the Missouri Department of Corrections. The increase in stockholders' equity reflects net income of $2,967,465 plus $79,788 in unrealized holding gains on investments in debt and equity securities available-for-sale, less dividends declared of $1,034,655. No material changes in the Company's liquidity or capital resources have occurred since December 31, 1996. PART II - OTHER INFORMATION Item 6. Exhibits and Reports on Form 8-K. (a) Exhibits Exhibit No. Description 2.1 Acquisition Agreement dated July 11, 1997, as amended August 25, 1997, by and among Exchange National Bancshares, Inc., ENBUSB Acquisition Company, Inc., Union State Bank & Trust of Clinton, Union State Bancshares, Inc., and certain shareholders of Union State Bancshares, Inc. (filed on November 7, 1997 as Exhibit 2.1 to the Company's Current Report on Form 8-K dated November 3, 1997 and incorporated herein by reference). 2.2 Merger Agreement, dated as of October 22, 1997 by and between Union State Bancshares, Inc. and ENBUSB Acquisition Company, Inc. (filed on November 7, 1997 as Exhibit 2.2 to the Company's Current Report on Form 8-K dated November 3, 1997 and incorporated herein by reference). 3.1 Articles of Incorporation of the Company (filed as Exhibit 3(a) to the Company's Registration Statement on Form S-4 (Registration No. 33-54166) and incorporated herein by reference). 3.2 Bylaws of the Company (filed as Exhibit 3(b) to the Company's Registration Statement on Form S-4 (Registration No. 33-54166) and incorporated herein by reference). 4 Specimen certificate representing shares of the Company's $1.00 par value common stock (filed as Exhibit 4 to the Company's Registration Statement on Form S-4 (Registration No. 33-54166) and incorporated herein by reference). 27 Financial Data Schedule (b) Reports on Form 8-K. No reports on Form 8-K have been filed during the third quarter of 1997. SIGNATURES In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. EXCHANGE NATIONAL BANCSHARES, INC. Date By /s/ Donald L. Campbell ___________________________________ Donald L. Campbell, Chairman of the Board of Directors, President and November 10, 1997 Principal Executive Officer By /s/ Carl A. Brandenburg, Sr. ___________________________________ Carl A. Brandenburg, Sr., Treasurer November 10, 1997 and Chief Financial Officer EXCHANGE NATIONAL BANCSHARES, INC. INDEX TO EXHIBITS September 30, 1997 Form 10-QSB Exhibit No. Description Page No. 2.1 Acquisition Agreement dated July 11, 1997, as amended August 25, 1997, by and among Exchange National Bancshares, Inc., ENBUSB Acquisition Company, Inc., Union State Bank & Trust of Clinton, Union State Bancshares, Inc., and certain shareholders of Union State Bancshares, Inc. (filed on November 7, 1997 as Exhibit 2.1 to the Company's Current Report on Form 8-K dated November 3, 1997 and incorporated herein by reference). ** 2.2 Merger Agreement, dated as of October 22, 1997 by and between Union State Bancshares, Inc. and ENBUSB Acquisition Company, Inc. (filed on November 7, 1997 as Exhibit 2.2 to the Company's Current Report on Form 8-K dated November 3, 1997 and incorporated herein by reference). ** 3.1 Articles of Incorporation of the Company (filed as Exhibit 3(a) to the Company's Registration Statement on Form S-4 (Registration No. 33-54166) and incorporated herein by reference). ** 3.2 Bylaws of the Company (filed as Exhibit 3(b) to the Company's Registration Statement on Form S-4 (Registration No. 33-54166) and incorporated herein by reference). ** 4 Specimen certificate representing shares of the Company's $1.00 par value common stock (filed as Exhibit 4 to the Company's Registration Statement on Form S-4 (Registration No. 33-54166) and incorporated herein by reference). ** 27 Financial Data Schedule 29 ** Incorporated by reference. EX-27 2
9 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE COMPANY'S QUARTERLY REPORT ON FORM 10-QSB FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 1997 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 0000893847 EXCHANGE NATIONAL BANCSHARES, INC. 1,000 9-MOS DEC-31-1997 JAN-01-1997 SEP-30-1997 9,067 81 10,400 0 51,281 30,710 30,984 192,616 2,438 301,620 230,855 25,581 2,490 0 0 0 719 41,975 301,620 12,261 3,683 250 16,194 7,091 7,816 8,378 525 (3) 4,857 4,397 2,967 0 0 2,967 4.13 4.13 4.24 642 109 0 6,517 2,307 522 128 2,438 1,858 0 580
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