-----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, VVoGcwRSpO7b0AGum1B/vSGuLPTKCiN/Hla5fyMo7M76BwndRZCdD48RTsPiDvZI 2LNypnKYFLuwKhDyTS+VcQ== 0000702147-96-000005.txt : 19960510 0000702147-96-000005.hdr.sgml : 19960510 ACCESSION NUMBER: 0000702147-96-000005 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19960331 FILED AS OF DATE: 19960509 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: SDNB FINANCIAL CORP CENTRAL INDEX KEY: 0000702147 STANDARD INDUSTRIAL CLASSIFICATION: STATE COMMERCIAL BANKS [6022] IRS NUMBER: 953725079 STATE OF INCORPORATION: CA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-11117 FILM NUMBER: 96558440 BUSINESS ADDRESS: STREET 1: 1420 KETTNER BLVD CITY: SAN DIEGO STATE: CA ZIP: 92101 BUSINESS PHONE: 6192331234 MAIL ADDRESS: STREET 1: P O BOX 12605 CITY: SAN DIEGO STATE: CA ZIP: 92112-3605 10-Q 1 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 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 March 31, 1996 or [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File No. 0-11117 SDNB FINANCIAL CORP. (Exact name of Registrant as Specified in its Charter) Incorporated in California - IRS Employer I.D. No. 95-3725079 1420 Kettner Boulevard, San Diego, California 92101 (Address of Principal Executive Office) (Zip Code) Registrant's Telephone Number including area code: 619-233-1234 Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes X No The number of shares of Common Stock outstanding as of the close of business on April 30, 1996: 3,073,260 SDNB FINANCIAL CORP. INDEX PART I FINANCIAL INFORMATION Page Item 1. Financial Statements Consolidated Balance Sheet (unaudited) 1 March 31, 1996 and December 31, 1995 Consolidated Statements of Operations (unaudited) 2 Three months ended March 31, 1996 Three months ended March 31, 1995 Consolidated Statements of Cash Flows (unaudited) 3 Three months ended March 31, 1996 Three months ended March 31, 1995 Notes to Consolidated Financial Statements (unaudited) 4 March 31, 1996 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 5-12 PART II OTHER INFORMATION Item 1. Legal Proceedings 13 Item 2. Changes in Securities 13 Item 3. Defaults upon Senior Securities 13 Item 4. Submission of Matters to a Vote of Security Holders 13 Item 5. Other Information 13 Item 6. Exhibits and Reports on Form 8-K 13 PART I FINANCIAL INFORMATION Item 1. Financial Statements SDNB Financial Corp. and Subsidiaries Consolidated Balance Sheets (unaudited) (In thousands) March 31, December 31, Assets 1996 1995 Cash and due from banks $ 11,404 $ 13,440 Interest bearing deposits in other banks 1,788 2,780 Investment securities held-to-maturity 5,897 7,408 Investment securities available-for-sale 29,286 27,033 Federal funds sold 17,200 24,700 Loans 92,641 92,331 Less allowance for loan losses 1,650 2,002 Net loans 90,991 90,329 Premises and equipment, net 10,929 10,975 Other real estate owned 419 181 Accrued interest receivable and other assets 1,548 1,726 Total assets $169,462 $178,572 Liabilities and Shareholders' Equity Liabilities: Deposits Non-interest bearing $ 46,182 $ 49,505 Interest bearing 94,056 90,904 Total deposits 140,238 140,409 Securities sold under agreement to repurchase 4,050 12,934 Accrued interest payable and other liabilities 579 554 Notes payable 7,956 7,989 Total liabilities 152,823 161,886 Shareholders' equity: Common stock 20,289 20,314 Accumulated Deficit 3,485 3,587 Net unrealized holding losses on available-for-sale securities (165) (41) Total shareholders' equity 16,639 16,686 Total liabilities and shareholders' equity $169,462 $178,572 The accompanying notes are an integral part of the consolidated financial statements. SDNB Financial Corp. and Subsidiaries Consolidated Statements of Operations (unaudited) (In thousands, except amounts per share) Three months ended March 31, 1996 1995 Interest income: Interest and fees on loans $ 2,276 $ 2,581 Interest on federal funds sold 304 200 Interest on investments 484 387 Total interest income 3,064 3,168 Interest expense: Interest on deposits 814 645 Interest on repurchase agreements 50 76 Interest on notes payable 0 15 Total interest expense 864 736 Net interest income 2,200 2,432 Provision for loan losses (100) 300 Net interest income after provision for loan losses 2,300 2,132 Other operating income: Security gains, net 0 11 Building income 224 261 Other non-interest income 269 185 Total other operating income 493 457 Other operating expenses: Salaries and employee benefits 1,167 1,020 Occupancy 156 110 Professional fees 100 122 Building operating expenses 516 596 Other non-interest expenses 748 676 Total other operating expenses 2,687 2,524 Income before income tax 106 65 Income tax 4 3 Net income $ 102 $ 62 Net income per share $ 0.03 $ 0.04 The accompanying notes are an integral part of the consolidated financial statements. SDNB Financial Corp. and Subsidiaries Consolidated Statements of Cash Flows (unaudited) (In thousands) Three months ended March 31, 1996 1995 OPERATING ACTIVITIES: Net income $ 102 $ 62 Adjustments to reconcile net income to net cash provided (used) by operating activities: Provision for loan losses (100) 300 Provision for depreciation and amortization 312 320 Amortization of investment security discounts (176) (5) Other expense not utilizing cash 19 34 Unearned loan fees 22 88 Taxes refundable (11) (5) Interest receivable and other assets (186) (668) Interest payable and other liabilities 282 (146) Total adjustments 162 (82) Net cash provided (used) by operating activities 264 (20) INVESTING ACTIVITIES: Proceeds from maturities of held-to-maturity securities 2,000 1,494 Proceeds from called held-to-maturity securities 0 395 Proceeds from maturities of available-for-sale securities 14,875 0 Purchases of held-to-maturity securities (500) 0 Purchases of available-for-sale securities (17,070) (600) Net change in gross loans (1,654) 3,070 Proceeds from OREO properties 851 0 Purchases of premises and equipment (181) (29) Net cash provided (used) by investing activities (1,679) 4,330 FINANCING ACTIVITIES: Net change in deposits (171) (9,064) Net change in short-term borrowings (8,884) 1,800 Payments of long-term borrowings (33) 0 Proceeds from issuance of common stock 0 2,215 Payments for costs associated with issuance of common stock (25) (150) Net cash used by financing activities (9,113) (5,199) Change in cash and cash equivalents (10,528) (889) Cash and cash equivalents at beginning of period 40,920 37,317 Cash and cash equivalents at end of period $30,392 $36,428 For the purpose of the statement of cash flows, the Company considers cash and cash equivalents to be as follows at March 31, 1996 1995 Cash and due from banks $11,404 $12,756 Interest-bearing deposits in other banks 1,788 2,072 Federal funds sold 17,200 21,600 Totals $30,392 $36,428 Supplemental cash flow information for the period ended March 31, 1996 1995 CASH PAID FOR: Interest $864 $737 Income Taxes $0 $0 Non-cash items: transfer of loans to OREO $1,034 $553 The accompanying notes are an integral part of the consolidated financial statements. SDNB Financial Corp. and Subsidiaries Notes to Consolidated Financial Statements (Unaudited) March 31, 1996 1. In the opinion of Management, the accompanying unaudited interim consolidated financial statements contain all adjustments (which are of a normal recurring nature) necessary to present fairly the financial position as of March 31, 1996, and the results of operations and cash flows for the three months ended March 31, 1996 and 1995. Certain prior year amounts have been reclassified to conform with the current year presentation. 2. Earnings per share for the three and nine months ended March 31, 1996 and 1995 are based on 3,073,260 and 1,561,036 weighted average shares outstanding, respectively. 3. At March 31, 1996, approximately $3.7 million in securities were pledged to secure deposits. SDNB FINANCIAL CORP. Form 10-Q PART I - FINANCIAL INFORMATION (continued) Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations OVERVIEW For the past several years SDNB Financial Corp. (the "Company") and San Diego National Bank (the "Bank") have been adversely effected by a number of factors emanating primarily from the condition of the economy in San Diego. The first quarter of 1996 saw a cessation of the impact of most of those factors. Loan loss provisions have been exceptionally high over the last several years but a substantial reduction in the amount of classified loans has allowed for the recovery of a portion of the previously committed loan loss provisions during the quarter ended March 31, 1996. The level of OREO property peaked in 1991 and has been generally declining since that time, therefore reducing losses and expenses in connection therewith. Additionally, the Company has incurred substantial expense in connection with legal fees and the provision for additional costs from the Pioneer Mortgage litigation which was settled late in 1995. The Bank has also suffered from a reduction in the level of the loan portfolio resulting from continuing low loan demand; however, the level of the loan portfolio has stabilized between December 31, 1995 and March 31, 1996. Discussion of the individual segments of the Company's operations is contained in subsequent sections of this report. LIQUIDITY AND ASSETS/LIABILITY MANAGEMENT By the nature of its commercial/wholesale focus, the Bank has moderate interest-rate risk exposure in a declining-rate environment. This phenomenon can be seen in the "Static Gap Summary" (Table 1). At March 31, 1996, approximately 69% of the Bank's earning assets adjust immediately to changes in interest rates. Within three months, this increases to 78% of earning assets. Consequently, the Bank utilizes deposit liabilities that also adjust relatively quickly. Within the same three-month period, approximately 91% of the Bank's interest-bearing liabilities (mostly deposits) adjust to current rates. The Bank's cumulative gap position at the three month repricing interval has decreased approximately $11.7 million, or 33 percent, from $35.8 million at December 31, 1995 to $24.1 million at March 31, 1996. This change is attributable primarily to decreases of $13.4 million in securities and $7.5 million in Federal funds sold offset by $8.9 decrease in securities sold under agreements to repurchase. During February 1995, the Bank entered into an interest rate swap to hedge against the effects on income of falling interest rates. If the prime interest rate falls below eight percent during the life of the contract, the Bank will receive payments amounting to the difference between the then existing prime rate and eight percent on the contract amount of $20 million. These payments continue while the prime interest rate stays below eight percent or until expiration of the contract, February 3, 1998. This contract helps to stabilize the Bank's net interest spread which, absent any hedge, decreases during periods of rapidly falling interest rates. To date, there have been no payments received under this contract. The Bank's liquidity needs are projected by comparing anticipated funding needs against current resources and anticipated deposit growth. Any current surplus of funds is invested to maximize income while maintaining safety and providing for future liquidity. During the three months ended March 31, 1996, cash and cash equivalents decreased $10.5 million. Approximately $1.7 million cash was used by investing activities. The two major components were net purchases of $700,000 of securities ($17.6 million of purchases offset by maturities of $16.9 million) and increase in gross loans of $1.7 million. Financing activities used $9.1 million, almost entirely from the decrease in repurchase agreements of $8.9 million during the period. Liquidity is provided on a daily basis by federal funds sold and on a longer- term basis by the structuring of the Bank's investment portfolio to provide a steady stream of maturing issues. Additionally, the Bank may raise additional funds from time to time through money desk operations or via the sale of loans to another institution. The Bank has never purchased high-yield securities or participated in highly- leveraged transactions. CAPITAL RESOURCES The Comptroller of the Currency ("Comptroller") has established a framework for supervisory requirements of national banks based upon capital ratios. Based upon this framework, a bank's capitalization is defined as well as capitalized, adequately capitalized, undercapitalized, significantly undercapitalized or critically capitalized. Under the Comptroller's framework, a bank is well capitalized if its ratios are greater than or equal to 6% and 10% for tier 1 capital and risk weighted capital, respectively. The Federal Reserve Board ("Reserve Board"), as the regulatory body of the Company, has capital ratio requirements. Under the Reserve Board's Capital Adequacy Guidelines, all bank holding companies should meet a minimum ratio of qualifying total capital to weighted-risk assets of 8 percent, of which at least 4.0 percentage points should be in the form of tier 1 capital. The Reserve Board and the Comptroller have also imposed a leverage standard to supplement their risk based ratios. This leverage standard focuses on a banking institution's ratio of Tier 1 capital to average total assets adjusted for goodwill and other certain items. Under these guidelines, banking institutions that meet certain criteria, including excellent asset quality, high liquidity, low interest rate exposure and good earnings, and have received the highest regulatory rating must maintain a ratio of Tier 1 capital to total assets of at least 3%. Institutions not meeting this criteria, as well as institutions with supervisory, financial or operational weaknesses, along with those experiencing or anticipating significant growth are expected to maintain a Tier 1 capital to total assets ratio equal to at least 4% to 5%. As reflected in the following table, the capital and leverage ratios of the Company as of March 31, 1996 and December 31, 1995 exceeded the fully phased- in regulatory risk-based capital adequacy guidelines and the leverage standard. As also reflected, at both dates the Bank exceeded the capital and leverage ratios for a "well capitalized" institution. Capital Components and Ratios (dollars in thousands) March 31, 1996 December 31, 1995 Company Bank Company Bank Capital Components Tier 1 Capital $16,804 $13,896 $16,726 $13,656 Total Capital 18,267 15,208 18,218 15,017 Risk-weighted assets and off-balance sheet instruments 116,870 106,260 117,967 107,310 Regulatory Capital Tier 1 risk-based: Actual 14.38% 13.06% 14.18% 12.73% Required 4.00 6.00 4.00 6.00 Excess 10.38% 7.06% 10.18% 6.73% Total risk-based: Actual 15.63% 14.31% 15.43% 13.98% Required 8.00 10.00 8.00 10.00 Excess 7.63% 4.31% 7.43% 3.98% Leverage: Actual 9.72% 8.56% 9.37% 8.43% Required 5.00 5.00 5.00 5.00 Excess 4.72% 3.56% 4.37% 3.43% Funds available for the payment of dividends by the Company would be obtained from the Bank. There are legal limitations on the ability of the Bank to provide funds for the Company. Under federal banking law, dividends declared by the Bank in any calendar year may not, without the approval of the Comptroller of the Currency, exceed its net income, as defined, for that year combined with its retained net income for the preceding two years. At March 31, 1996, the Bank had available for dividends to the Company approximately $1,590,000 without approval of the Comptroller. Federal banking law also restricts the Bank from extending credit to the Company in excess of 10% of capital stock and surplus, as defined, of the Bank. Any such extensions of credit are subject to strict collateral requirements. The Company and the Federal Reserve Bank of San Francisco ("Reserve Bank") entered into an agreement on November 20, 1992, pursuant to which the Company must obtain the approval of the Reserve Bank prior to the declaration of any cash dividends. INVESTMENT SECURITIES During the first quarter of 1996, the gross unrealized losses in the available-for-sale category increased from $41,000 to $165,000 and in the held-to-maturity category increased from $75,000 to $95,000. Management continues to believe that there is sufficient liquidity and available sources of liquidity to allow all such securities (which are fully guaranteed by United States Government instrumentalities as to principal) to mature and thus avoid realization of any material amount of the presently unrealized losses. NET INTEREST INCOME/NET INTEREST MARGIN The following is a comparison of the net interest spread between the first three months of 1996 and the same period of 1995. 1996 1995 Yield on average earning assets (taxable equivalent) 8.16% 9.44% Cost of funds 2.30% 2.18% Net interest spread 5.86% 7.26% In addition to interest rates, changes in the volumes of assets and liabilities also affect net interest income. The volume/rate variance analysis (Table 2) shows the change in net interest income that is attributable to changes in volume versus changes in rates. As reflected in Table 2, the comparison of net interest income between the first quarter of 1996 and the similar quarter of 1995 was impacted by the significant decrease in the prime interest rate (8.33% average in 1996 vs. 8.83% average in 1995) coupled with a shift in an increased proportion of lower earning investments as opposed to higher earning loans. LOANS AND ALLOWANCE AND PROVISION FOR LOAN LOSSES A summary of the activity in the allowance for loan loss is as follows: (In thousands) Three months ended March 31, 1996 1995 Balance at beginning of period $2,002 $2,148 Provision charged (credited) to operating expenses (100) 300 Loans charged off (263) (257) Recoveries 11 62 Balance at end of period $1,650 $2,253 Management employs a 'migration analysis method' to establish the required amount of loan loss allowance. This process tracks realized loan losses back through the prior two years to estimate loss exposure on the classified and unclassified loan portfolios. Additionally, loss experience is tracked in pools of loans with similar characteristics to estimate the loss exposure unique to various loan types. The measured loss exposure is then applied to the current loan portfolio and further adjusted for 'qualitative factors'. This method of establishing loan loss reserves complies with the policies of the Office of the Comptroller of the Currency as reflected in Banking Circular 201, revised, dated February 20, 1992, and in Banking Bulletin 93-60, dated December 21, 1993. The Company began testing this new method during 1992 and comparing its results to results reached by the previously existing procedures employed by the Company. The test proved that the two methods were comparable, and the Company adopted the new migration analysis method during 1993. Accordingly, the Company believes its method for establishing the loan loss allowance is sound. But no method, however valid, can consistently predict future events with complete accuracy. In recent years, several factors used by the Bank to establish loan loss allowances have been subject to considerable volatility, and this in turn has affected the volatility of nonperforming loans, charge-offs, and the coverage ratio. In addition, the Bank's method of reporting, particularly its conservative listing of loans as nonperforming, is not always an accurate indicator of actual future losses. These issues are explained in greater detail below. The economy in San Diego suffered a sharp downturn in recent years, particularly in the real estate market. The Bank is a community bank with a relatively small loan portfolio comprised of mostly commercial/real estate loans that tend to be individually larger in amount than loans made by retail banks. As a result of these and other factors, the Bank can experience large swings in nonperforming loans, charge-offs, and the coverage ratio when one or a few loans are transferred from one category to another. These factors are not reasons for changing a valid method of determining loan loss allowances and are not always accurate predictors of losses, but they do have short-term effect on those allowances and related reported figures. The volatility of "non-performing" loans is illustrated in the following chart: ASSETS REPORTED AS NONPERFORMING (In thousands) At At At March 31, 1996 December 31, 1995 March 31, 1995 CURRENT AND NONCURRENT Non-accrual loans $4,580 $6,969 $3,523 Restructured loans (still accruing) 2,116 1,364 2,311 Loans 90 days past due 71 93 1 6,767 8,426 5,835 Other real estate owned 419 181 816 Total $7,186 $8,607 $6,651 NONCURRENT Non-accrual loans $2,110 $3,160 $1,223 Restructured loans (still accruing) 0 0 0 Loans 90 days past due 71 93 1 2,181 3,253 1,224 Other real estate owned 419 181 816 Total $2,600 $3,434 $2,040 Loans reported as nonperforming but which are current, as a percentage of total loans reported as nonperforming 64% 61% 79% OTHER OPERATING INCOME Other non-interest income in 1996 includes a gain of $55,000 from sale of an OREO property. OTHER OPERATING EXPENSES Salaries and employee benefits and occupancy expense increased between 1995 and 1996 primarily because of the opening of the Bank's South Bay office and International Department late in 1995. SUBSIDIARY DATA San Diego National Bank The Bank earned $220,000 in the first quarter of 1996 compared to $246,000 for the same quarter of 1995. Return on average assets (ROA) was 0.54% and 0.66% respectively. Return on average equity (ROE) was 6.47% and 8.20%, respectively. The reasons for the change in Bank earnings have been enumerated on the preceding pages. San Diego National Bank Building Joint Venture The JV recorded pre-consolidation gross building revenues of $502,000 and $500,000 in the first quarter of 1996 and 1995, respectively, resulting in pre-consolidation, pretax losses of $148,000 and $147,000, respectively. Depreciation and amortization expenses were $140,000 and $143,000 in 1996 and 1995, respectively.
Table 1 San Diego National Bank Static Gap Summary March 31, 1996 (In thousands) Immediately Non-rate Adjustable 1 Day 3 6 Sensitive Or 1 Day Through Through Through And Over Maturity 3 Months 6 Months 12 Months 12 Months Total Loans (net) 83,516 2,508 953 2,069 3,595 92,641 Investment securities - 9,216 13,256 4,839 7,395 34,706 Certificates of deposit in other banks - 892 498 - - 1,390 Federal funds sold 17,200 - - - - 17,200 Total interest earning assets 100,716 12,616 14,707 6,908 10,990 145,937 Non-interest earning assets - - - - 12,730 12,730 Total assets 100,716 12,616 14,707 6,908 23,720 158,667 Deposits: Savings, NOW accounts and money markets 67,975 - - - - 67,975 Time deposits - 17,216 3,956 4,728 335 26,235 Total deposits 67,975 17,216 3,956 4,728 335 94,210 Securities sold under agreement to repurchase 4,050 - - - - 4,050 Total interest bearing liabilities 72,025 17,216 3,956 4,728 335 98,260 Non-interest bearing liabilities - - - - 46,696 46,696 Shareholders' equity - - - - 13,711 13,711 Total liabilities and shareholders' equity 72,025 17,216 3,956 4,728 60,742 158,667 Interest rate sensitivity gap 28,691 (4,600) 10,751 2,180 (37,022) Cumulative interest rate sensitivity gap 28,691 24,091 34,842 37,022 -
Table 2 SDNB Financial Corp. Volume/Rate Variance Analysis Three months ended March 31, 1996 and 1995 (In thousands) 1996 compared to 1995 Volume Rate Total Increase(decrease) in interest on earning assets: Commercial loans $ (61) $ (108) $ (169) Real estate loans (47) (114) (161) Installment loans 27 (1) 26 Ready Money (1) 0 (1) Total loans (82) (223) (305) U.S. Treasury securities 152 6 158 Securities of government agencies (57) 1 (56) State and political obligations (21) (21) (42) Other securities 7 (3) 4 Total investment securities 81 (17) 64 Interest-bearing deposits in other banks 18 0 18 Federal funds sold 123 (19) 104 Total interest income change 140 (259) (119) Increase(decrease) in interest paid on liabilities: Savings accounts (7) 1 (6) NOW accounts (6) (9) (15) Super NOW accounts 2 (3) (1) Money market accounts (25) (21) (46) Executive money market accounts 89 9 98 Total savings deposits 53 (23) 30 Time deposits under $100,000 59 11 70 Time deposits of $100,000 or above 34 33 67 Total time deposits 93 44 137 Federal funds purchased and securities sold under agreement to repurchase (23) (2) (25) Short-term debt (31) (31) (62) Long-term debt (47) 44 (3) Total interest expense change 45 32 77 Net change in net interest income $ 95 $ (291) $ (196) 1) Interest income on state and political obligations has been adjusted for tax effect at current rates. Interest expense on short- and long-term debt is included in Building Operating Expenses in the Consolidated Statement of Earnings. 2) Change in interest income or expense can be attributed to (a) changes in volume (change in volume times old rate), (b) changes in rates (change in rate times old volume), and (c) changes in rate/volume (change in rate times the change in volume). The rate/volume variances are allocated proportionally between the rate and volume variances based on their absolute values. PART II - OTHER INFORMATION ITEM 1 Legal Proceedings None ITEM 2 Changes in Securities None ITEM 3 Defaults Upon Senior Securities None ITEM 4 Submission of Matters to a Vote of Security Holders None ITEM 5 Other Information None ITEM 6 Exhibits and Reports on Form 8-K A. Exhibits (listed by number corresponding to the Exhibit Table of Item 601 of Regulation SK) 27 Financial Data Schedule (submitted only in electronic format and omitted from paper copies pursuant to Paragraph (c) (v) of Regulation S-K (17 CFR 220.601(c) (v)) and Note 2 to Paragraph (c) (1) (vi) of Regulation S-K (17 CFR 229.601(c) (1) (vi)). B. Reports on Form 8-K None SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has caused this report to be signed on its behalf by the undersigned thereunto duly authorized. Dated: May 9, 1996 SDNB FINANCIAL CORP. By: /s/ Howard W. Brotman Howard W. Brotman, duly authorized officer and Chief Financial Officer EX-27 2
9 THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM FORM 10-Q AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 1000 3-MOS DEC-31-1996 MAR-31-1996 11,404 1,788 17,200 0 29,286 5,897 5,799 92,641 1,650 169,462 140,238 4,050 579 7,956 0 0 20,289 (3,650) 169,462 2,276 484 304 3,064 814 864 2,200 (100) 0 493 106 106 0 0 102 0.03 0.03 5.04 4,580 71 4,118 0 2,002 263 11 1,650 996 0 654
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