1
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 10-Q
(Mark One)
[ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended
June 30, 1997
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
Commission file number 0-11535
CITY NATIONAL BANCSHARES CORPORATION
(Exact name of registrant as specified in its charter)
New Jersey 22-2434751
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
900 Broad Street, 07102
Newark, New Jersey (Zip Code)
(Address of principal executive offices)
Registrant's telephone number, including area code: (201) 624-0865
Securities Registered Pursuant to Section 12(b) of the Act: None
Securities Registered Pursuant to Section 12(g) of the Act:
Title of each class
Common stock, par value $10 per share
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 aggregate market value of voting stock held by non affiliates of the
Registrant as of July 31, 1997 was approximately $1,287,320.
There were 114,141 shares of common stock outstanding at July 31, 1997.
Index Page
Part I. Financial Information
Item 1. Financial Statements
Consolidated Balance Sheet as of June 30, 1997 and
December 31, 1996..................................................3
Consolidated Statement of Income for the Six Months Ended June 30,
1997 and 1996 and for the Three Months Ended June 30, 1997 and
1996...............................................................4
Consolidated Statement of Changes in Stockholders' Equity for the Six
Months Ended June 30, 1997 and 1996 5
Consolidated Statement of Cash Flows for the Six Months Ended June 30,
1997 and 1996.......................................................6
Notes to Consolidated Financial Statements.........................7
Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operaions 8
Part II. Other Information.................................................12
Signatures...................................................................14
Item 4. Submission of matters to a vote of security holders
Item. 6. Exhibits and reports on Form 8-K..................................15
2
CITY NATIONAL BANCSHARES CORPORATION
AND SUBSIDIARIES
Consolidated Balance Sheet (Unaudited)
June 30, December 31,
Dollars in thousands, except per share data 1997 1996
Assets
Cash and due from banks $3,510 $2,767
Federal funds sold - 8,900
Interest bearing deposits with banks 38 74
Investment securities available for sale 31,668 30,997
Investment securities held to maturity (Market value of $28,772
at June 30, 1997 and $29,517 at December 31,1996 29,252 29,866
Loans held for sale 551 291
loans 56,937 57,128
Less: Reserve for possible loan losses 800 750
Net loans 56,137 56,378
Premises and equipment 3,318 3,331
Accrued interest receivable 1,011 1,078
Other real estate owned 627 672
Other assets 1,673 597
Total assets $127,785 $134,951
Liabilities and Stockholders' Equity
Deposits:
Demand $13,482 $13,699
Savings 27,726 37,527
Time 64,289 64,628
Total deposits 105,497 115,854
Short-term borrowings 8,000 5,175
Accrued expenses and other liabilities 1,103 3,886
Long-term debt 3,749 1,749
Total liabilities 118,349 126,664
Commitments and contingencies
Stockholders' equity
Preferred stock, no par value: Authorized 100,000 shares;
Series A , issued and outstanding 8 shares in 1997 and 1996 200 200
Series B , issued and outstanding 20 shares in 1997 and 1996 500 500
Series C , issued and outstanding 108 shares in 1997 and 1996 27 27
Series D , issued and outstanding 3,208 shares in 1997 820 -
Common stock, par value $10: Authorized 400,000 shares;
114,980 shares issued in 1997 and 1996,
114,141 shares outstanding in 1997 and 1996 1,150 1,150
Surplus 901 901
Retained earnings 5,933 5,645
Less:
Net unrealized loss on investment securities available 70 111
Treasury stock, at cost - 839 shares 25 25
Total stockholders' equity 9,436 8,287
Total liabilities and stockholders' equity $127,785 $134,951
See accompanying notes to consolidated financial statements.
3
CITY NATIONAL BANCSHARES CORPORATION
AND SUBSIDIARIES
Three months ended Six months ended
June 30, June 30,
Consolidated Statement of Income (Unaudited)
Dollars in thousands, except per share data 1997 1996 1997 1996
Interest income
Interest and fees on loans $1,282 $1,200 $2,535 $2,245
Interest on Federal funds sold and securities
purchased under agreements to resell 122 61 243 116
Interest on other short-term investments 39 36 39 144
Interest on deposits with banks - 2 1 4
Interest and dividends on investment securities:
Taxable 960 897 1,857 1,715
Tax-exempt 29 29 58 58
Total interest income 2,432 2,225 4,733 4,282
Interest expense
Interest on deposits 1,003 798 1,924 1,523
Interest on short-term borrowings 68 65 116 102
Interest on long-term debt 55 24 91 49
Net interest income 1,306 1,338 2,602 2,608
Provision for possible loan losses 23 23 50 33
Net interest income after provision
for possible loan losses 1,283 1,315 2,552 2,575
Other operating income
Service charges on deposit accounts 142 136 285 279
Other income 146 164 304 333
Net gain on sales of investment securities 19 (1) 40 9
Total other operating income 307 299 629 621
Other operating expenses
Salaries and other employee benefits 666 649 1,307 1,310
Occupancy expense 78 70 165 134
Equipment expense 93 105 190 178
Other expenses 358 340 727 706
Total other operating expenses 1,195 1,164 2,389 2,328
Income before income tax expense 395 450 792 868
Income tax expense 143 157 287 303
Net income $252 $293 $505 $565
Net income per share
Primary $2.21 $2.57 $4.04 $4.96
Fully diluted 1.99 2.31 3.65 4.47
Primary average shares outstanding 114,141 114,141 114,141 113,501
Fuully diluted average shares outstanding 127,991 127,991 127,991 127,351
See accompanying notes to consolidated financial statements.
4
CITY NATIONAL BANCSHARES CORPORATION
AND SUBSIDIARIES
Consolidated Statement of Changes
In Stockholders' Equity
(Unaudited)
Net Unrealized
Gain (Loss) on
Investment
Common Preferred Retained Securities Treasury
Dollars in thousands, except per share Stock Surplus Stock Earnings Available for Sale Stock Total
Balance, December 31, 1995 $1,120 $886 $200 $4,856 $(141) $(25) $6,896
Net income - - - 565 - - 565
Proceeds from issuance of common stock 30 15 - - - - 45
Proceeds from issuance of preferred st - - 527 - - - 527
Change in net unrealized loss on investment
securities available for sale - - - - (60) - (60)
Dividends paid - - (156) - - (156)
Balance, June 30, 1996 $1,150 $901 $727 $5,265 $(201) $(25) $7,817
Balance, December 31, 1996 $1,150 $901 $727 $5,645 $(111) $(25) $8,287
Net income - - - 505 - - 505
Proceeds from issuance of preferred st - - 820 - - - 820
Change in net unrealized loss on
investment securities available - - - - 41 - 41
Dividends paid - - - (217) - - (217)
Balance, June 30, 1997 $1,150 $901 $1,547 $5,933 $(70) $(25) $9,436
See accompanying notes to consolidated financial statements.
5
CITY NATIONAL BANCSHARES CORPORATION
AND SUBSIDIARIES
Consolidated Statement of Cash Flows (Unaudited)
Six Months Ended
June 30,
In thousands 1997 1996
Operating activities
Net income $505 $565
Adjustments to reconcile net income to net cash from operating activities:
Depreciation and amortization 183 158
Provision for possible loan losses 50 33
Discount accretion, net of premium amortization
on investment securities (12) 26
Net gains on calls of investment securities held to maturity (42) (10)
Gains and commissions on loans held for sale (12) (40)
Decrease (increase) in accrued interest receivable 67 (165)
Deferred (benefit) income tax expense (26) 80
(Increase) decrease in other assets (1,078) 223
(Decrease) increase in accrued expenses and other liabilities (2,783) 59
Net cash (used in) provided by operating activities (3,148) 929
Investing activities
Loans originated for sale (756) (1,439)
Proceeds from sales of loans held for sale 480 1,313
Decrease (increase) in loans 170 (5,321)
Purchase of loans in conjunction with branch acquisitions - (4,035)
Decrease in interest bearing deposits with banks 36 286
Proceeds from sales and calls of investment securities available for 4,718 -
Proceeds from maturities of investment securities availabe for sale,
including principal payments 18,625 3,446
Proceeds from maturities of investment securities held to maturity,
including principal payments 604 3,787
Purchases of investment securities available for sale (23,881) (2,200)
Purchases of investment securities held to maturity - (10,025)
Purchases of premises and equipment (170) (1,144)
Decrease in other real estate owned 94 -
Net cash used in investing activities (80) (15,332)
Financing activities
Deposits acquired in branch acquisition - 7,661
Issuance of long-term debt 2,000
Decrease in deposits (10,357) (5,468)
Increase in short-term borrowings 2,825 6,526
Proceeds from issuance of common stock - 45
Proceeds from issuance of preferred stock 820 527
Dividends paid on preferred stock (44) -
Dividends paid on common stock (173) (156)
Net cash (used in) provided by financing activities (4,929) 9,135
Net decrease in cash and cash equivalents (8,157) (5,268)
Cash and cash equivalents at beginning of period 11,667 10,294
Cash and cash equivalents at end of period $3,510 $5,026
Cash paid during the year:
Interest $1,982 $1,646
Income taxes 303 168
Noncash investing activities:
Transfer of loans to other real estate owned 49 94
See accompanying notes to consolidated financial statements.
6
CITY NATIONAL BANCSHARES CORPORATION
Notes to Consolidated Financial Statements (Unaudited)
1. Basis of presentation
The accompanying unaudited consolidated financial statements have been
prepared in accordance with generally accepted accounting principles for
interim financial information. Accordingly, they do not include all the
information and footnotes required by generally accepted accounting
principles for complete financial statements. In the opinion of management,
all adjustments (consisting of normal recurring accruals) considered
necessary for a fair presentation of the financial statements have been
included. Operating results for the six months and three months ended June
30, 1997 are not necessarily indicative of the results that may be expected
for the year ended December 31,1997.
2. Principles of consolidation
The accompanying consolidated financial statements include the accounts of
City National Bancshares Corporation (the "Corporation") and its
subsidiary, City National Bank of New Jersey (the "Bank"). All significant
intercompany accounts and transactions have been eliminated in
consolidation.
3. Net income per common share
Primary income per common share is calculated by dividing net income less
dividends on preferred stock by the weighted average number of common
shares outstanding. Common shares issuable upon conversion of the
subordinated debentures have been excluded from the primary income per
common share as they are not considered to be common stock equivalents. On
a fully diluted basis, both net income and common shares outstanding are
adjusted to assume the conversion of the convertible subordinated
debentures from the date of issue.
4. Recent accounting pronouncements
Financial Accounting Board Statement of Financial Accounting Standards No.
128, "Earnings per share" (SFAS 128) establishes standards for computing
and presenting earnings per share (EPS) and applies to entities with
publicly held common stock or potential common stock. SFAS 128 replaces the
presentation of primary EPS with a presentation of basic EPS and requires
dual presentation of basic and diluted EPS on the face of the income
statement for all entities with complex capital structures. SFAS 128 is
effective for financial statements issued for periods ending after December
15, 1997, including interim periods, and earlier application is not
permitted. SFAS 128 also requires restatement of all prior period EPS data
presented. SFAS 128 in not expected to have a material effect on the
Corporation's consolidated financial statements.
Management's Discussion and Analysis of Results of Operations and Financial
Condition
Results of operations
Net income for the first half of 1997 was $505,000 compared to $565,000 for
the similar 1996 period. Returns on average stockholders' equity and
average assets were 12.13% and .72% for the 1997 first half and 14.94% and
.88% for the corresponding 1996 period. Related earnings per share on a
fully diluted basis decreased to $3.65 from $4.47.
1997 second quarter net income declined to $252,000 from $293,000 a year
earlier. Returns on average stockholders' equity and average assets were
12.12% and .71% for the 1997 second quarter, while the corresponding 1996
returns were 15.34% and .88%. Related fully diluted per share earnings were
$1.99 compared to $2.31.
Lower gains and commissions on loan sales resulting from a decrease in
mortgage loans originated for sale, along with higher operating expenses
were the primary reasons for the lower earnings in both periods.
Net interest income
For the first half of 1997, net interest income was relatively unchanged
from the same 1996 period, although the related net interest margin
declined to 4.09% from to 4.47%. The decreased margin resulted from a
higher cost of funds. Average interest earning assets for the first half of
1997 rose to $139.3 million from $127.1 million in 1996. Most of this
growth occurred within the loan portfolio, which averaged $57 million
compared to $50.2 million , a 20.2 % increase. Most of this increase
resulted from greater commercial real estate loan activity.
Interest income was higher due to the increase in earning assets and a the
increase in loan volume contributed to an increase in the average rate
earned to 7.40% from 7.31%. Interest expense rose as well, due to an
increase in the cost of funding interest earning assets, from 2.84% to
3.31%.
Net interest income for the second quarter of 1997 was also relatively
unchanged from a year earlier, decreasing slightly, by 2.4%, due to higher
deposit costs which were not offset by commensurate increases in interest
income.
Provision and reserve for possible loan losses
Changes in the reserve for possible loan losses are set forth below.
Six Months Three Months
Ended June 30, Ended June 30,
(Dollars in thousands) 1997 1996 1997 1996
Balance at beginning of period $750 $650 $760 $675
Provision for possible loan losses 50 33 23 23
Recoveries of previous charge-offs 29 84 17 66
829 767 800 764
Less: Charge-offs 29 67 - 64
Balance at end of period $800 $700 $800 $700
Management believes that the reserve for possible loan losses is adequate
based on an ongoing evaluation of the loan portfolio. This evaluation
includes consideration of past loan loss experience, the level and
composition of nonperforming loans, collateral adequacy, and general
economic conditions within the Bank's market area, including the effect of
such conditions on particular industries.
While management uses available information to determine the adequacy of
the reserve, future additions may be necessary based on changes in economic
conditions or in subsequently occurring events unforeseen at the time of
evaluation.
(Dollars in thousands) June 30, 1997 March 31, 1997 December 31, 1996 June 30, 1996
- --------------------------------------------------------------------------------------------------------------------------
Reserve for possible loan losses as a percentage of:
Total loans 1.41% 1.34% 1.31% 1.29%
Total nonperforming loans 85.02% 77.08% 70.89% 78.83%
Total nonperforming assets
(nonperforming loans and OREO) 51.02% 46.51% 43.35% 83.75%
Net charge-offs (recoveries) as a
percentage of average -% (.03)% .02% (.03)%
loans
(year-to-date)
Nonperforming loans
Nonperforming loans include loans on which the accrual of interest has been
discontinued or loans which are contractually past due 90 days or more as
to interest or principal payments on which interest income is still being
accrued. Nonaccrual loans include loans where principal or interest
interest income is still being accrued Delinquent interest payments are
credited to income when received. The following table presents the
principal amounts of nonperforming loans past due 90 days or more and
accruing.
(Dollars in thousands) June 30, 1997 December 31, 1996 June 30, 1996
- --------------------------------------------------------------------------------------------
Nonaccrual loans
Commercial $381 $ 423 $143
Installment 8 4 2
Real estate 322 598 393
Total 711 1,025 536
Loans past due 90 days
or more and still accruing
Commercial - 14 -
Installment - - -
Real estate 230 19 351
Total 230 33 351
Total nonperforming loans $941 $1,058 $888
Nonperforming assets are generally well secured by real estate and small
commercial buildings. It is the Bank's intent to move nonperforming loans
into other real estate owned ("OREO") as rapidly as possible and to dispose
of all OREO properties at the earliest possible date at prices considered
reasonable under the circumstances.
Other operating income
Other operating income, including the results of investment securities
transactions, rose slightly in both the first half and second quarter of
1997 compared to the similar 1996 periods, as gains and commissions on
sales of residential mortgages, which are included in other income,
decreased, offset by higher net gains on sales of investment securities
available for sale.
Other operating expenses
Other operating expenses rose 2.6% for both the first half and second
quarter of 1997 compared to the similar 1996 periods. The six-month
increase resulted primarily from higher occupancy and equipment expense
associated with the completion of the administrative office renovations,
along with the operation of a branch office acquired on March 8, 1996 for a
full six months in 1997. 1997 second quarter expenses rose due to higher
salaries and other operating benefits and increased other expenses.
Income tax expense
Income tax expense as a percentage of pretax income rose from 34.9% in the
first quarter and first half of 1996 to 36.2% for the similar 1997 periods
as a result of higher levels of income subject to state income tax.
Short-term interest earning assets
Short-term interest earning assets rose 6.5%, averaging $10.6 million for
the first six months of 1997 compared to $9.9 million for the similar 1996
period.
Investment securities
The available for sale portfolio was relatively unchanged, totalling $31.7
million at June 30, 1997 compared to $31 million at the end of 1996, an
increase of 2.2%. Related unrealized depreciation decreased to $52,000
compared to $106,000 at 1996 year-end.
The held to maturity portfolio also changed nominally, declining by 2.1%,
from $29.9 million at December 31, 1996 to $29.3 million at June 30, 1997.
Related unrealized depreciation was up, increasing from $349,000 to
$480,000 at June 30, 1997.
At June 30, 1997, included in both the aforementioned portfolios were six
structured notes with a carrying value of $5.2 million and a related market
value of $5 million, reflecting unrealized depreciation of $211,000,
compared to $143,000 at 1996 year-end. These notes consist of step-up,
dual-index and deleveraged notes, the market values of which do not
necessarily move in the same direction as general changes in bond prices.
Management believes that holding these notes will not have a significant
impact on the financial condition or operations of the Corporation.
Loans
Loans held for sale rose from $291,000 at December 31,1996 to $551,000 at
June 30, 1997 while loans originated for sale during the 1997 first half
totalled $756,000 compared to $1.4 million during the half of 1996. Loans
totalled $56.9 million at June 30, 1997 compared to $57.1 million at
December 31, 1996.
Deposits
Average deposits for the first half of 1997 rose 7.2 %, to $120.4 million
compared to $112.3 million for the first half of 1996, with most of the
growth occurring in certificates of deposits of $100,000 or more issued to
local municipalities.
Short-term borrowings
Average short-term borrowings rose 13% from the first half of 1996 to the
corresponding 1997 period, reflecting higher levels of U.S. Treasury tax
and loan note option balances.
Long-term debt
Long-term debt increased $2 million in the first half of 1997 from December
31, 1996, as a result of $2 million in Federal Home Loan Bank advances
incurred in February, 1997.
Liquidity
The liquidity position of the Corporation is dependent on the successful
management of its assets and liabilities so as to meet the needs of both
deposit and credit customers. Liquidity needs arise primarily to
accommodate possible deposit outflows and to meet borrowers' requests for
loans. Such needs can be satisfied by investment and loan maturities and
payments, along with the ability to raise short-term funds from external
sources.
It is the responsibility of the Asset/Liability Management Committee
("ALCO") to monitor and oversee all activities relating to liquidity
management and the protection of net interest income from fluctuations in
interest rates.
The Bank depends primarily on deposits as a source of funds and also
provides for a portion of its funding needs through short-term borrowings,
such as Federal Funds purchased, securities sold under repurchase
agreements and borrowings under the U.S. Treasury tax and loan note option
program.
The major contribution during the first quarter of 1997 from operating
activities to the Corporation's liquidity came from higher accrued expenses
and other liabilities.
Net cash used in investing activities was primarily the result of the
purchase of investment securities available for sale, which totalled $23.9
million, while sources of cash provided by investing activities were
derived primarily from proceeds from maturities, principal payments and
early redemptions of investment securities available for sale, which
amounted to $18.6 million.
The primary source of funds from financing activities resulted from an
increase in long-term debt of $2 million while a decrease in deposits of
$10.4 million representing the highest use of cash in financing activities.
Interest rate sensitivity
The management of interest rate risk is also important to the profitability
of the Corporation. Interest rate risk arises when an earning asset matures
or when its interest rate changes in a time period different from that of a
supporting interest bearing liability, or when its interest rate changes in
a time period different from that of an interest earning asset that it
supports. While the Corporation does not match specific assets and
liabilities, total earnings assets and interest bearing liabilities are
grouped to determine the overall interest rate risk within a number of
specific time frames.
Interest sensitivity analysis attempts to measure the responsiveness of net
interest income to changes in interest rate levels. The difference between
interest sensitive assets and interest sensitive liabilities is referred to
as the interest sensitivity gap. At any given point in time, the
Corporation may be in an asset-sensitive position, whereby its
interest-sensitive assets exceed its interest-sensitive liabilities or in a
liability-sensitive position, whereby its interest-sensitive liabilities
exceed its interest-sensitive assets, depending on management's judgment as
to projected interest rate trends.
One measure of interest rate risk is the interest-sensitvity analysis,
which details the repricing differences for assets and liabilities for
given periods. The primary limitation of this analysis is that it is a
static (i.e, as of a specific point in time) measurement which does not
capture risk that varies nonproportionally with changes in interest rates.
Because of this limitation, the Corporation uses a simulation model as its
primary method of measuring interest rate risk. This model, because of its
dynamic nature, forecasts the effects of different patterns of rate
movement and variances in the effects of rate changes on the Corporations'
mix of interest-sensitive assets and liabilities.
At June 30,1997, the Corporation had a cumulative one-year static gap of a
negative $10 million, representing 7.88% of total assets compared to a
negative $12.4 million gap at December 31,1996, which represented 9.19% of
total assets. Utilizing a dynamic simulation model, management believes
that this amount would not result in a significant change in net interest
income should interest rates rise or fall up to 300 basis points, which is
the maximum change that management uses to measure the Corporation's
exposure to interest rate risk.
Capital
On June 28, 1997 the Corporation issued $820,000 of 6.5% noncumulative
preferred stock in a placement. Stockholders' equity amounted to $9.4
million at June 30, 1997 compared to $8.3 million to December 31, 1996.
Stockholders' equity as a percentage of total assets was 7.39% at June 30,
1997 compared to 6.14% at December 31, 1996.
Risk-based capital ratios are expressed as a percentage of risk-adjusted
assets, and relate capital to the risk factors of a bank's asset base,
including off-balance sheet risk exposures. Various weights are assigned to
different asset categories as well as off-balance sheet exposures depending
on the risk associated with each. In general, less capital is required for
less risk.
At June 30,1997, the Corporation's core capital (Tier 1 ) and total (Tier 1
plus Tier 2) risked-based capital ratios were 16.90% and 22.05%,
respectively.
PART II Other information
Item 4. Submission of matters to a Vote of Security Holders
a) The Annual Meeting of Stockholders of City National Bancshares
Corporation was held on April 16, 1997. The stockholders voted upon the
election of one person, named in the proxy statement, to serve as a
director of the Corporation for a term of three years. One director was
elected at the Annual Meeting with the number of votes "For" and
"Abstained" indicated. There were no votes "Against".
Number of Votes
Name For Abstained
Leon Ewing 68,197 239
The terms of the following directors were continued after the Annual
Meeting: Douglas Anderson, Eugene Giscombe, Barbara Bell Coleman, Norman
Jeffries, Louis E. Prezeau, and Lamar Whigam.
Stockholders also voted to amend the articles of incorporation to authorize
a new class of non-voting common stock. Stockholders voted 67,396 "For" the
proposal, 537 shares " Against" the proposal and 503 shares "Abstained".
Finally, stockholders also voted upon the ratification of the appointment
of KMPG Peat Marwick as independent auditors for the fiscal year ended
December 31, 1997. Stockholders voted 68,198 shares "For" the proposal, 42
shares " Against" and 196 shares "Abstained".
Item 5. Other Matters
a) On March 31, 1997, the Board approved the declaration of a $1.50 per
share dividend to common stockholders, payable on May 2, 1997 to
stockholders of record on April 2, 1997.
Item 6. Exhibits
(a)Exhibits
(3)(i) Certificate of Designation Establishing and Fixing the Powers,
Designations, Preferences and Relative Participating, Optional and Other
Special Rights, and the Qualifications, Limitation and Restrictions of the
6 1/2% Non-cumulative Perpetual Preferred Stock, Series D
(10) Material Contracts Employment Agreement between Registrant to Louis E.
Prezeau, President & CEO dated May 24, 1997
(11) Statement Regarding Calculation of Per Share Earnings
(27) Financial Data Schedule
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 hereunto duly authorized.
CITY NATIONAL BANCSHARES CORPORATION
(Registrant)
August 11, 1997 ____________________
Edward R. Wright
Senior Vice President and Chief Financial
Officer (Principal Financial and Accounting Officer)