-----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, Oj9pBlw4+g1IbWpAaSWXU/Go9Q1H49sfHvI6tY0nlHnDKyBTopFseGYD8BSjM2/t VBYakqx+UXdID1J6dPTuMA== 0000706343-95-000010.txt : 19951030 0000706343-95-000010.hdr.sgml : 19951030 ACCESSION NUMBER: 0000706343-95-000010 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19950930 FILED AS OF DATE: 19951027 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: DELTA NATIONAL BANCORP CENTRAL INDEX KEY: 0000706343 STANDARD INDUSTRIAL CLASSIFICATION: NATIONAL COMMERCIAL BANKS [6021] IRS NUMBER: 942839814 STATE OF INCORPORATION: CA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 002-79261 FILM NUMBER: 95584813 BUSINESS ADDRESS: STREET 1: 611 N MAIN ST CITY: MANTECA STATE: CA ZIP: 95336-3740 BUSINESS PHONE: 2092391104 MAIL ADDRESS: STREET 1: 611 NORTH MAIN STREET CITY: MANTECA STATE: CA ZIP: 95336 10-Q 1 FORM 10-Q FORM 10-Q SECURITIES AND EXCHANGE COMMISSION Washington, D. C. 20549 Quarterly Report Under Section 13 or 15(d) of the Securities Exchange Act of 1934 For Quarter Ended SEPTEMBER 30, 1995 Commission file number 2-79261 DELTA NATIONAL BANCORP (Exact name of registrant as specified in its charter) California 94-2839814 (State or other jurisdiction of (IRS Employer Identification No.) incorporation or organization) 611 North Main Street, Manteca, California 95336-3740 (Address of principal executive offices) (Zip code) (209) 824-4050 (Registrant's telephone number, including area code) Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes [ x ] No [ ] APPLICABLE ONLY TO CORPORATE ISSUERS Indicate the number of shares outstanding of each of the issuer's classes of common stock as of September 30, 1995: Common Stock, no par value - 376,782 shares. DELTA NATIONAL BANCORP INDEX PART I. FINANCIAL INFORMATION Page no. Item 1. Financial Statements Consolidated Balance Sheets - September 30, 1995 and December 31, 1994 3 Consolidated Statements of Income - Three months ended September 30, 1995 and 4 Nine months ended September 30, 1995 Three months ended September 30, 1994 and 5 Nine months ended September 30, 1994 Consolidated Statements of Cash Flows - Nine months ended September 30, 1995 and 1994 6 Notes to Consolidated Financial Statements 8 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 14 PART II. OTHER INFORMATION Signatures 18 PART 1 - FINANCIAL INFORMATION Item 1 - Financial Statements DELTA NATIONAL BANCORP CONSOLIDATED BALANCE SHEETS ( In Thousands) Unaudited
Sept.30, Dec.31, 1995 1994 -------- -------- ASSETS Cash and due from banks .............................. $ 4,724 $ 3,349 Federal funds sold ................................... 4,300 2,800 -------- -------- Total cash and cash equivalents .............. 9,024 6,149 Interest bearing deposits in banks ................... 0 0 Investment Securities: note (3) Securities available for sale .................. 16,362 21,231 Securities held to maturity .................... 18,114 11,797 -------- -------- 34,476 33,028 Loans, net: note (4)(5)(6)(8) ....................... 47,535 47,044 Property and equipment ............................... 1,384 902 Interest receivable, other assets and other real estate owned: note (9) ......................... 1,795 2,066 -------- -------- TOTAL ASSETS ......................................... $ 94,214 $ 89,189 ======== ======== LIABILITIES AND STOCKHOLDERS' EQUITY Deposits: Non-interest bearing ............................. 13,662 13,215 Interest bearing ................................. 70,727 67,006 -------- -------- Total deposits ............................... 84,389 80,221 Accrued interest/other liabilities ................... 306 221 Stockholders' equity: Common stock, no par value Authorized - 5,000,000 shares Issued and outstanding - 376,782 shares ........ 3,532 3,532 Retained earnings ................................ 6,044 5,598 Net unrealized appreciation (depreciation) on securities available-for-sale, net of tax of $40,444 and $152,133 at September 30, 1995 and 1994, respectively ......................... (57) (383) -------- -------- Total stockholders' equity ................... 9,519 8,747 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY ........... $ 94,214 $ 89,189 ======== ========
The accompanying notes are an integral part of this statement. PART 1 - FINANCIAL INFORMATION Item 1 - Financial Statements DELTA NATIONAL BANCORP CONSOLIDATED STATEMENTS OF INCOME ( In Thousands) EXCEPT PER SHARE DATA Unaudited
3 MONTHS 9 MONTHS ENDING ENDING SEPT. 30, SEPT. 30, 1995 1995 --------- --------- Interest income: Interest and fees on loans ....................... $1,414 $4,164 Interest on investment securities: Securities available-for-sale .................... 251 802 Securities held-to-maturity ...................... 287 638 Investment securities Interest-bearing deposits in banks ............... 0 0 Federal funds sold ............................... 88 221 ------ ------ Total interest income ........................ 2,040 5,825 Interest expense on deposits ......................... 802 2,239 ------ ------ Net interest income .......................... 1,238 3,586 Provision for loan loss .............................. 100 299 ------ ------ Net interest income after provision for possible loan losses .................... 1,138 3,287 Other income Service charges on deposits ...................... 125 358 Other income ..................................... 57 173 ------ ------ 182 531 ------ ------ Other expenses Salaries, wages and employee benefits ............ 464 1,349 Occupancy and equipment .......................... 194 509 Other operating expenses ......................... 232 794 ------ ------ 890 2,652 ------ ------ Earning before income taxes .................. 430 1,166 Income taxes ......................................... 176 456 ------ ------ NET EARNINGS ................................. $ 254 $ 710 ====== ====== Net earnings per share: .............................. $ .67 $ 1.88 ====== ======
The accompanying notes are an integral part of this statement. PART 1 - FINANCIAL INFORMATION Item 1 - Financial Statements DELTA NATIONAL BANCORP CONSOLIDATED STATEMENTS OF INCOME ( In Thousands) EXCEPT PER SHARE DATA Unaudited
3 MONTHS 9 MONTHS ENDING ENDING SEPT. 30, SEPT. 30, 1994 1994 --------- --------- Interest income: Interest and fees on loans .............. $1,279 $3,549 Interest on investment securities: Securities available-for-sale Securities held-to-maturity Investment securities ................... 369 1,046 Interest-bearing deposits in banks ...... 0 0 Federal funds sold ...................... 64 178 ------ ------ Total interest income ............... 1,712 4,773 Interest expense on deposits ................ 592 1,679 ------ ------ Net interest income ................. 1,120 3,094 Provision for loan loss ..................... 28 283 ------ ------ Net interest income after provision for possible loan losses ........... 1,092 2,811 Other income Service charges on deposits ............. 117 399 Other income ............................ 50 156 ------ ------ 167 555 ------ ------ Other expenses Salaries, wages and employee benefits ... 452 1,299 Occupancy and equipment ................. 158 451 Other operating expenses ................ 229 943 ------ ------ 839 2,693 ------ ------ Earning before income taxes ......... 420 673 Income taxes ................................ 158 238 ------ ------ NET EARNINGS ........................ $ 262 $ 435 ====== ====== Net earnings per share: ..................... $ .70 $ 1.15 ====== ======
The accompanying notes are an integral part of this statement. PART 1 - FINANCIAL INFORMATION Item 1 - Financial Statements DELTA NATIONAL BANCORP CONSOLIDATED STATEMENTS OF CASH FLOWS (In Thousands) Unaudited
9 MONTHS ENDING SEPT. 30, ------------------------- 1995 1994 ---- ---- Increase (decrease) in cash and cash equivalents Cash flows from operating activities: Net earnings ....................................... $ 710 $ 435 Adjustments to reconcile net earnings to net cash provided by operating activities (Gain)/Loss on sale of assets ................ 16 (3) (Gain)/Loss on sale of OREO .................. (26) 0 Provision for possible loan losses ........... 299 283 Provision for OREO ........................... 38 258 Provision for depreciation and ............... 345 245 amortization Decrease (increase) in interest receivable ................................... (397) 148 and other assets Increase (decrease) in interest payable and other liabilities ....................... 47 82 ------- ------- Net cash provided by operating activities.. 1,032 1,448 ------- ------- Cash flows from investing activities: Proceeds from maturities of securities available-for-sale ............................... 5,434 Proceeds from maturities of securities held-to-maturity ................................. 2,987 Proceeds from sales & maturities of securities ..... 5,818 Purchase of securities available-for-sale .......... 0 Purchase of securities held-to-maturity ............ (9,473) Purchase of securities ............................. (8,884) Net (increase) decrease in loans ................... (790) (3,700) Purchase of property and equipment ................. (693) (66) Purchase/additions to OREO ......................... (34) 0 Proceeds from sale of property and equipment ....... 10 16 Proceeds from sale of OREO ......................... 497 316 Net (Inc.) dec. Int. Bearing Deposits Other Inst.... 0 5 ------- ------- Net cash (used in) provided by investing activities ...................... (2,062) (6,495) ------- -------
The accompanying notes are an integral part of this statement. PART 1 - FINANCIAL INFORMATION Item 1 - Financial Statements DELTA NATIONAL BANCORP CONSOLIDATED STATEMENTS OF CASH FLOWS - CONTINUED (In Thousands) Unaudited
9 MONTHS ENDING SEPT. 30, ------------------------- 1995 1994 ---- ---- Cash flows from financing activities: Net increase (decrease) in demand deposits, money market accounts and savings accounts ....... 3,981 154 Net (decrease) increase in time deposits ........... 188 3,395 Cash dividends ..................................... (264) (264) ------- ------- Net cash provided by financing activities ................................ 3,905 3,285 ------- ------- Net increase (decrease) in cash and cash equivalents ..................................... 2,875 (1,762) Cash and cash equivalents at beginning of period ..... 6,149 10,281 ------- ------- Cash and cash equivalents at end of period ........... $ 9,024 $ 8,519 ======== ======== Supplemental disclosures of cash flow information: Cash paid during the period for: Interest ..................................... 2,042 1,506 Income Taxes ................................. 736 20
Noncash investing and financing activities: The Bank recognized an increase of $556,391 in the fair value of its available-for-sale securities in the first nine months of 1995 and a decline of $698,841 in the fair value of its available-for-sale securities for the year ended December 31, 1994. The accompanying notes are an integral part of this statement. PART 1 - FINANCIAL INFORMATION Item 1 - Financial Statements DELTA NATIONAL BANCORP NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 1995 1. Basis Delta National Bancorp (the Company) was incorporated under the laws of the State of California on December 21, 1981 for the purpose of serving as a bank holding company under the Bank Holding Company Act of 1956. The Company's wholly-owned subsidiary, Delta National Bank (the Bank), operates as a commercial bank in the cities of Manteca, Riverbank, Denair and Modesto, California. Headquarters are located at the Manteca Branch at 611 North Main Street, Manteca, California. 2. Summary of Accounting Policies The accounting and reporting policies of the Company and the Bank conform with generally accepted accounting principles and general practice within the banking industry. The consolidated financial statements of the Company include the accounts of the Company and the Bank. Significant intercompany transactions and amounts have been eliminated. 3. Investment Securities Prior to December 31, 1993, securities were stated at cost adjusted for amortization of premiums and accretion of discounts, which were recognized as adjustments to interest income. Gains or losses on disposition were based on the net proceeds and the adjusted carrying amount of the securities sold, using the specific identification method. Securities were considered held for investment purposes since the Bank had the ability and intention to hold such securities to maturity. In May 1993, the Financial Accounting Standards Board issued Statement No. 115, "Accounting for Certain Investments in Debt and Equity Securities". A significant provision of this statement is the change in accounting and reporting for certain investments in debt securities and equity securities. These securities are classified into one of three categories: held-to-maturity, available-for-sale, or trading. Held-to-maturity securities will continue to be measured at amortized cost and available-for-sale and trading securities are measured at fair value. Unrealized holding gains and losses for available-for-sale securities are excluded from earnings and reported as a net amount in a separate component of stockholders' equity until realized. The Bank adopted and implemented SFAS No. 115 as of December 31, 1993. DELTA NATIONAL BANCORP NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 1995 3. Investment Securities (continued) Carrying values and estimated fair values of investment securities for September 30, 1995 and December 31, 1994 are summarized as follows:
September 30, 1995 December 31, 1994 Amortized Gross Estimated Amortized Gross Estimated Cost Unrealized Fair Cost Unrealized Fair Gains Value Gains Value (Losses) (Losses) Available-for-Sale Securities: U.S. Treasury Securities ................. $ 2,000 $ (3) $ 1,997 $ 1,996 $ (49) $ 1,947 Obligations of other U.S. government agencies .................... 13,097 (224) 12,873 16,188 (654) 15,534 Obligations of state and political subdivisions ................. 606 131 737 2,281 78 2,359 Corporate bonds and Other ................ 757 (2) 755 1,420 (29) 1,391 ------- ------- ------- ------- ------- ------- TOTAL ...................................... $16,460 $ (98) $16,362 $21,885 $ (654) $21,231 ======= ======= ======= ======= ======= ======= Held-to-Maturity Securities: U.S. Treasury Securities ................. $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 Obligations of other U.S. government agencies .................... 15,596 42 15,638 7,696 (39) 7,657 Obligations of state and political subdivisions ................. 1,111 (5) 1,106 1,328 (31) 1,297 Corporate bonds and Other ................ 1,407 (8) 1,399 2,773 (72) 2,701 ------- ------- ------- ------- ------- ------- TOTAL ...................................... $18,114 $ 29 $18,143 $11,797 $ (142) $11,655 ======= ======= ======= ======= ======= =======
DELTA NATIONAL BANCORP NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 1995 4. The following table discloses separately (1) total loans (2) the allowance for losses and (3) unearned income: September, 1995 December, 1994 --------------- -------------- Total Loans ............................ $ 48,876,884 $ 48,055,894 Allowance for Loan Loss ................ (907,986) (599,422) Unearned Discount ...................... (90,738) (167,027) Deferred Profit on OREO Sales .......... (95,560) 0 Deferred Loan Fees ..................... (247,469) (245,844) ------------- ------------- Loans, net ............................. $ 47,535,131 $ 47,043,601 ============= ============= 5. The following table discloses the amount of total loans in each of the following categories for the periods indicated: September, 1995 December, 1994 --------------- -------------- Commercial Loans ....................... $23,369,523 $20,991,617 Real Estate Construction ............... 7,996,336 7,352,440 Real Estate Mortgage ................... 15,313,720 16,610,145 Installment ............................ 2,197,305 3,101,692 ----------- ----------- Total Loans ............................ $48,876,884 $48,055,894 =========== =========== DELTA NATIONAL BANCORP NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 1995 6. Impaired Loans: In May, 1993, the Financial Accounting Standards Board (FASB) issued Statement No. 114, Accounting by Creditors for Impairment of a Loan (SFAS 114) which addresses the accounting treatment of certain impaired loans and amends FASB statements No. 5 and No. 15. SFAS does not address the overall adequacy of the allowance possible for loan losses. The Bank adopted and implemented SFAS No. 114 as of January 1, 1995. A loan is considered impaired when, based on current information and events, it is probable that a creditor will be unable to collect all amounts due according to the contractual terms of the loan agreement. The accrual of interest is discontinued on such loans and no income recognized until all recorded amounts of interest and principal are recovered in full. Under SFAS 114, impairment is measured based on the present value of the expected future cash flows discounted at the loans effective interest rate. Alternatively, impairment may be measured by using the loans observable market price or the fair value of the collateral if repayment is expected to be provided solely by the underlying collateral. The recorded investment in these loans and the valuation allowance for credit losses related to loan impairment are as follows: 9 Month End September, 1995 --------------- Principal amount of impaired loans ........................ $1,643,522 Accrued Interest .......................................... 551 Deferred loan costs ....................................... 2,377 ---------- 1,646,450 Less valuation allowance .................................. 61,638 ---------- Total carrying value ...................................... $1,584,812 ========== DELTA NATIONAL BANCORP NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 1995 6. Impaired Loans (continued): The activity in the allowance account is as follows: 9 Month End September, 1995 --------------- Valuation allowance at beginning of period .................... $ 0 Net charges to operations for impairment ...................... 61,638 Direct writedowns ............................................. 0 Recoveries .................................................... 0 ------- Valuation allowance at end of period .......................... $61,638 ======= 7. As of September 30, 1995 there were no material loans outstanding made by the Company to the directors, executive officers, or any principal holders of equity securities. 8. Changes in the allowance for loan losses are as follows (includes allowance for loan losses at $846,000 and allowance for impaired loans at $62,000): 9 Month End 9 Month End September, 1995 September, 1994 --------------- --------------- Beginning balance .................... $ 599,000 $ 807,000 Charge Offs .......................... (83,000) (561,000) Recoveries ........................... 93,000 74,000 Allowance ............................ 299,000 283,000 --------- --------- Ending balance ....................... $ 908,000 $ 603,000 ========= ========= DELTA NATIONAL BANCORP NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 1995 9. Real Estate properties acquired through foreclosure are initially recorded at fair value at the date of foreclosure establishing a new cost basis. After foreclosure, valuation are periodically performed and the real estate is carried at the lower of (1)cost or (2)fair market value minus estimated costs to sell. Changes in the valuation allowance for OREO are as follows: 9 Month End 9 Month End September, 1995 September, 1994 --------------- --------------- Beginning balance ........................... $ 257,644 $ 0 Provision charged to operations ............. 37,923 261,544 Recoveries .................................. (3,900) --------- --------- Ending balance .............................. $ 295,567 $ 257,644 ========= ========= PART 1 - FINANCIAL INFORMATION Item II - Financial Condition and Results of Operations DELTA NATIONAL BANCORP MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS SEPTEMBER 30, 1995 Results of Operations The management and the directors of the Company reported net earnings for the nine month period ending September 30, 1995 at $710,000 compared to net earnings of $435,000 for the same period in 1994. The increase in earnings in 1995 is primarily related to income from high quality assets and control of expenses. Management is pleased with the earnings for the third quarter of 1995. Consolidated assets increased to $94,214,000 as of September 30, 1995 which represents a growth rate of 5.71% compared to September, 1994 when assets totaled $89,123,000. Deposits continue to grow at $84,389,000 for the first nine months of 1995 compared to $80,377,000 for the first nine months of 1994. This represents a 4.99% increase. Capital remains very strong at $9,519,000 in 1995 compared to $8,529,000 in 1994. Net interest income, the largest component of the Company's earnings, represents the difference between interest earned on loans and other assets and interest paid on deposits. Net interest income increased 15.90% to $3,586,000 in September, 1995 compared to $3,094,000 in September, 1994. Economic conditions have stabilized to some degree over the past year. The bank has been able to operate within it's niche with notable success. Management, while pleased with the first nine months of operation for 1995, is aware that diligence will be required to maintain high quality assets and control of expenses. The next few months and years will be critical for the bank to ensure it's viability well into the future. Interstate banking, non-institutional lenders and new technology will present challenges to community banks. Delta National Bank is determined to meet these challenges and to prosper in the long term environment. Liquidity Management Liquidity refers to the Company's ability to maintain a cash flow adequate to fund operations and meet obligations on other commitments on a timely and cost effective basis. The Bank insures the maintenance of a reasonable amount of liquid funds in order to meet periodic increases in loan demand and deposit maturities. Investments are made in short term sources including deposits in correspondent banks, fed funds sold, marketable securities as well as cash on hand. The Bank's liquidity average ratio for September, 1995 was 27.60% which management feels is more than adequate. Liquidity is enhanced by operating profits and increasing deposits. In recent years, core deposits have provided the Company with a sizable source of relatively stable and low-cost funds. Asset/Liability Management The principal objectives of asset/liability management is maintaining an appropriate balance between interest sensitive assets and interest sensitive liabilities along with reducing interest rate exposure while providing liquidity. Interest-earning assets and interest-bearing liabilities are those which have yields or rates which are subject to change due to maturity of the instrument or changes in the rate environment. Gap refers to the difference between the rate sensitive assets and rate sensitive liabilities. When the amount of rate sensitive assets exceeds rate sensitive liabilities, a "positive" gap exists and when the amount of rate sensitive liabilities exceed the amount of rate sensitive assets, a "negative" gap exists. Major fluctuations in net interest income and net earnings could occur due to imbalances between rate sensitive assets and liabilities. Asset/Liability management attempts to protect earnings by maintaining the proper balance between interest-earning assets and interest-bearing liabilities in order to minimize fluctuations in the net interest margin and net earnings in periods of volatile interest rates. The following table summarizes the interest rate sensitivity of the Company's assets and liabilities at September 30, 1995. Assets and liabilities are categorized where applicable, by remaining interest rate maturities rather than contractual maturities of obligations. For example, investment securities with variable rates are monitored and reported in the category that represents the frequency of the rate change. Interest Rate Sensitivity Analysis
0 - 30 31 - 90 91 - 180 181 - 365 1 - 5 Over 5 Days Days Days Days Years Years Total ------ ------- -------- --------- ------ ------ ------ Interest-bearing bank balances ............... 4,300 0 0 0 0 0 4,300 Investment Securities ........................ 0 17,355 14,215 1,335 781 419 34,520 Loans ........................................ 35,994 651 2,214 3,852 6,461 567 48,404 ------ ------ ------ ------ ------ ------ ------ Total Rate Sensitive Assets .................. 40,709 18,006 16,429 3,852 7,242 986 87,224 ====== ====== ====== ====== ====== ====== ====== Interest Bearing Demand Deposits ............. 13,919 0 0 0 0 0 13,919 Time Certificates of Deposits ................ 4,609 8,289 4,407 12,615 4,346 0 34,266 Savings Passbook Certificates of Deposit and Regular Savings ................ 10,824 10,212 0 0 0 0 21,036 ------ ------ ------ ------ ------ ------ ------ Total Rate Sensitive Liabilities ............. 29,352 18,501 4,407 12,615 4,346 0 69,221 ====== ====== ====== ====== ====== ====== ====== Interval Gaps/RSA-RSL ........................ 11,357 (495) 12,022 (8,763) 2,896 986 18,003 ====== ====== ====== ====== ====== ====== ======
Capital Resources Capital plays a fundamental and vital role in the operation of the Bank. Capital adequacy is important to the Bank functions to insure continued financial strength, protect against unanticipated losses, build confidence in depositors and shareholders, and enables the Bank to acquire the physical necessities necessary to render proper Bank services. The Company is subject to the capital adequacy requirements of various federal banking agencies, such as the Office of Comptroller of the Currency and the Federal Deposit Insurance Corporation. At September 30, 1995 the Company exceeded its capital requirements and expects to remain in compliance with capital requirements in the future. Minimum September 1995 December 1994 Risk Based Capital Ratio ........... 8.00% 17.40% 15.47% Tier I Ratio ....................... 4.00% 16.14% 14.49% Leverage Ratio ..................... 3.00% 10.07% 9.92% The Company's total risk-based capital ratio increased to 17.40% compared to 15.92% for September 30, 1994. A review of the Banks risk-based capital level shows that levels again were substantially higher than regulatory requirements. The Bank's capital requirement policy shall, at all times, meet or exceed the requirements set forth by regulatory agencies. In the event that the minimum regulatory capital requirement is not met through retained earnings and restricted growth, the Bank shall consider other forms of raising capital. It is a priority of this institution to continue to meet and exceed all regulatory capital compliance levels. Accounting Changes The Financial Accounting Standards Board has issued a new standard for accounting and reporting of certain investments in debt securities and equity securities. The Bank adopted and implemented SFAS No. 115 as of December 31, 1993. The Financial Accounting Standards Board has issued a new standard which addresses the accounting treatment of certain impaired loans. The Bank adopted and implemented SFAS No. 114 as of January 1, 1995. PART II - OTHER INFORMATION Item 1 - Legal Proceedings - None other than in the ordinary course of business. Item 2 - Change 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 - No Change in Executive Officers. Item 6 - Exhibits and Reports on Form 8-K - None 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. DELTA NATIONAL BANCORP (Registrant) DATE: October 23, 1995 /s/ Andrew Rossi ------------------------ Andrew Rossi President/Chief Executive Officer Director (Principal Executive Officer) DATE: October 23, 1995 /s/ Warren E. Wegge ------------------------ Warren E. Wegge Executive Vice President (Principal Financial Officer) DATE: October 23, 1995 /s/ Toinette Rossi ------------------------ Toinette Rossi Vice President and Manager Director EX-27 2 FDS 9 MONTHS ENDED SEP 30, 1995
9 1000 9-MOS DEC-31-1995 SEP-30-1995 4724 0 4300 0 16362 18114 18143 48877 908 93927 84424 0 306 0 3532 0 0 5987 93927 4164 1440 221 5825 2239 2239 3586 299 0 2652 1166 0 0 0 710 1.88 1.88 8.53 494 235 1149 6958 599 83 93 908 0 0 0
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