UNITED STATES 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 March 31, 1996
OR
( ) 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 0-15536
Codorus Valley Bancorp, Inc.
(Exact name of registrant as specified in its charter)
Pennsylvania 23-2428543
(State of incorporation) (I.R.S. Employer ID No.)
1 Manchester Street, P.O. Box 67, Glen Rock, PA 17327
(Address of principal executive offices) (Zip Code)
(717) 235-6871 or (717) 846-1970
(Registrant's telephone number, including area code)
Not Applicable
(Former name, former address and former fiscal year, if changes
since last report.)
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 ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS
DURING THE PRECEDING FIVE YEARS:
Indicate by check mark whether the registrant has filed all
documents and reports required to be filed by Section 12, 13 or
15(d) of the Securities Exchange Act of 1934 subsequent to the
distribution of securities under a plan confirmed by a court.
Yes No
APPLICABLE ONLY TO CORPORATE ISSUERS
Indicate the number of shares outstanding of each of the issuer's
classes of common stock, as of the latest practicable date.
995,793 shares of $2.50 (par value) common stock were outstanding
as of 4-23-96 .
CODORUS VALLEY BANCORP, INC.
10Q INDEX
Page
#
PART I - FINANCIAL INFORMATION:
- Consolidated Statements of Financial Condition... 1
- Consolidated Statements of Income................ 2
- Consolidated Statements of Cash Flows............ 3
- Notes to Consolidated Financial Statements....... 4
- Management's Discussion and Analysis of Financial
Condition and Results of Operations.............. 7
PART II - OTHER INFORMATION ............................... 12
Signature Page ............................................ 15
CODORUS VALLEY BANCORP, INC.
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
Unaudited
March 31, December 31, March 31,
1996 1995 1995
--------- --------- ---------
Assets (dollars in thousands)
Cash and due from banks:
Interest bearing deposits with banks $ 340 $ 341 $ 108
Non-interest bearing deposits and cash 5,147 5,356 5,262
Federal funds sold 4,650 3,150 3,250
Loans held for sale 7,030 0 0
Securities available for sale 64,193 61,679 54,817
Loans 151,435 160,008 153,907
Less-allowance for loan losses (2,306) (2,286) (2,245)
-------- -------- --------
Total net loans 149,129 157,722 151,662
Premises and equipment 3,690 3,523 3,251
Interest receivable 1,763 1,703 1,648
Other assets 1,069 1,273 1,473
-------- -------- --------
Total assets............................$237,011 $234,747 $221,471
======== ======== ========
Liabilities
Deposits
Non-interest bearing demand $ 16,007 $ 17,369 $ 15,296
NOW 21,333 20,862 20,217
Insured money fund 26,080 25,902 25,143
Savings 22,263 21,577 22,236
Time CD's less than $100,000 111,962 110,435 104,826
Time CD's $100,000 and above 16,474 16,295 13,675
-------- -------- --------
Total deposits 214,119 212,440 201,393
Interest payable 995 865 866
Accrued expenses and other liabilities 665 410 537
-------- -------- --------
Total liabilities....................... 215,779 213,715 202,796
Stockholders' Equity
Series preferred stock, par value $2.50
per share; 1,000,000 shares authorized;
0 shares issued and outstanding 0 0 0
Common stock, par value $2.50 per share;
10,000,000 shares authorized; 995,793
shares issued at 3/31/96; 995,792 at
12/31/95; and 958,623 at 3/31/95. 2,490 2,490 2,396
Capital surplus 5,194 5,194 4,428
Retained earnings 13,206 12,731 12,318
Net unrealized gains(losses) on securities
available for sale, net of taxes 342 617 (197)
Less: Treasury stock 0 0 (270)
-------- -------- --------
Total stockholders' equity............... 21,232 21,032 18,675
Total liabilities and stockholders'
equity.................................$237,011 $234,747 $221,471
======== ======== ========
See accompanying notes.
1
CODORUS VALLEY BANCORP, INC.
CONSOLIDATED STATEMENTS OF INCOME
Unaudited
Three months ended
March 31,
(dollars in thousands, except per share data) 1996 1995
Interest Income ------ ------
Interest and fees from loans $3,594 $3,442
Interest from federal funds sold and interest
bearing deposits with banks 40 33
Interest and dividends from securities:
Taxable interest income 849 750
Tax-exempt interest income 74 76
Dividend income 14 14
------ ------
Total interest income.............................. 4,571 4,315
Interest Expense
NOW 116 126
Insured money fund 186 203
Savings 135 144
Time CD's less than $100,000 1,529 1,353
Time CD's $100,000 and above 219 171
------ ------
Total interest expense.............................. 2,185 1,997
------ ------
Net interest income................................. 2,386 2,318
Provision for Loan Losses 58 1
------ ------
Net interest income after provision for loan losses 2,328 2,317
Non-interest Income
Trust income 66 58
Service charges on deposit accounts 102 94
Other service charges and fees 60 62
Gain (loss) on sales of securities 0 (62)
------ ------
Total non-interest income 228 152
Non-interest Expense
Salaries and benefits 880 839
Occupancy of premises 112 106
Furniture and equipment 118 156
FDIC deposit insurance 1 111
Professional and legal 50 (5)
Marketing and advertising 18 45
Acquired real estate, net (10) 35
Other 369 327
------ ------
Total non-interest expense 1,538 1,614
Income before income taxes 1,018 855
Provision for Income Taxes 314 251
------ ------
Net income..........................................$ 704 $ 604
====== ======
Net income per common share..........................$0.67 $0.58
===== =====
See accompanying notes.
2
CODORUS VALLEY BANCORP, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
Unaudited
Three months ended
March 31,
1996 1995
------ -------
Cash Flows From Operating Activities: (dollars in thousands)
Net Income $ 704 $ 604
Adjustments to reconcile net income
to net cash provided by operations:
Depreciation 90 92
Provision for loan losses 58 1
Provision for losses on assets acquired in foreclosure (2) 30
Gain on sales of assets acquired in foreclosure (13) 0
Loss on sales of securities 0 62
(Increase) in interest receivable (60) (9)
(Increase) decrease in other assets (18) 253
Increase in interest payable 130 14
Increase in other liabilities 255 160
Other, net 13 9
------ -------
Net cash provided by operating activities............. 1,157 1,216
Cash Flows From Investing Activities:
Proceeds from sales of securities available for sale 0 2,345
Proceeds from maturities and calls of securities
available for sale 5,356 1,712
Purchase of securities available for sale (8,319) (4,207)
Net decrease (increase) in loans made to customers 1,313 (3,349)
Proceeds from loan sales 166 94
Purchases of premises and equipment (257) (42)
Proceeds from sale of assets acquired in foreclosure 424 0
------ -------
Net cash used in investing activities................. (1,317) (3,447)
Cash Flows From Financing Activities:
Net (decrease) in demand and savings deposits (27) (4,504)
Net increase in time deposits 1,706 9,001
Dividends paid (229) (218)
Payment to repurchase common stock 0 (270)
------ -------
Net cash provided by financing activities............. 1,450 4,009
------ -------
Net increase (decrease) in cash and cash equivalents.. 1,290 1,778
Cash and cash equivalents at beginning of year........ 8,847 6,842
------ -------
Cash and cash equivalents at March 31,...............$10,137 $ 8,620
======= =======
Supplemental Disclosures:
Interest payments $2,055 $1,983
Income tax payments $15 $0
See accompanying notes.
3
CODORUS VALLEY BANCORP, INC.
Notes to Consolidated Financial Statements
Note 1-General
The interim financial statements are unaudited. However, they reflect
all adjustments which are, in the opinion of management, necessary to
present fairly the financial condition and results of operations for the
reported periods, and are of a normal and recurring nature.
These statements should be read in conjunction with notes to the
financial statements contained in the 1995 Annual Report to
Stockholders.
No shares of common stock are reserved for issuance in the event of
conversions or the exercise of warrants, options or other rights, except
for shares reserved for the Corporation's Dividend Reinvestment and
Stock Purchase Plan and the Corporation's Shareholders' Rights Plan.
The results of operations for the three month period ended March 31,
1996 are not necessarily indicative of the results to be expected for
the full year.
Note 2-Summary of Significant Accounting Policies
Allowance for Loan Losses - Management considers the allowance for loan
losses (reserve) to be adequate at this time.
Held for Sale Loans - Loans held for sale are reported at the lower of
cost or market value. The amount by which cost exceeds market value, if
any, is accounted for as a valuation allowance and is charged to
expense in the period of the change.
Per Share Computations - All per share computations include the
retroactive effect of stock dividends including the estimated effect of
the 5% stock dividend declared April 9, 1996.
Reclassifications - Certain reclassifications have been made to the 1995
consolidated financial statements to conform with the 1996 presentation.
SFAS No. 121 - Effective January 1, 1996 the Corporation adopted
Statement of Financial Accounting Standards No. 121, "Accounting for
Impairment of Long-Lived Assets and for Long-Lived Assets to Be Disposed
Of." The new rule specifies, among other things, when assets should be
reviewed for impairment, how to determine if an asset is impaired, how
to measure an impairment loss, and what disclosures are necessary in the
financial statements. Adoption of Statement No. 121 will not materially
affect the assets, earnings or capital of the Corporation.
4
CODORUS VALLEY BANCORP, INC.
Notes to Consolidated Financial Statements, continued
Note 2-Summary of Significant Accounting Policies, continued
SFAS No. 122 - Effective January 1, 1996, the Corporation adopted
Statement of Financial Accounting Standards No. 122, "Accounting for
Mortgage Servicing Rights." The new rule requires that management
recognize as separate assets, rights to service mortgage loans for
others, regardless of how they were acquired. Management should
allocate the total cost of mortgage loans, either purchased or
originated, to the loans and the servicing rights based on their
relative fair value. Statement No. 122 also specifies how mortgage
servicing rights and excess servicing rights should be evaluated for
impairment. Adoption of Statement No. 122 will not materially affect
the assets, earnings or capital of the Corporation.
Note 3-Impaired Loans
On January 1, 1995, the Corporation adopted Statement of Financial
Accounting Standards No. 114, "Accounting by Creditors for Impairment of
a Loan", as amended by Statement No. 118, "Accounting by Creditors for
Impairment of a Loan--Income Recognition and Disclosure." Under
Statement No. 114, 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. The Statement requires that impaired loans be
measured based on the present value of expected future cash flows,
discounted at the loan's effective interest rate, or as a practical
expedient, at the loan's observable market price or the fair value of
the collateral if the loan is collateral dependent. If the measure of
the impaired loan is less than its recorded investment a creditor must
recognize an impairment by creating, or adjusting, a valuation allowance
with a corresponding charge to loan loss expense. The Corporation
uses the cash basis method to recognize interest income on loans that
are impaired. All of the Corporation's impaired loans were on a non-
accrual status for all reported periods. Additional information
regarding impaired loans is provided in the schedule that follows.
March 31, December 31, March 31,
(dollars in thousands) 1996 1995 1995
------ ------ ------
Impaired loans $4,374 $3,583 $2,070
Amount of impaired loans that
have a related allowance $4,374 $3,583 $2,070
Amount of impaired loans with
no related allowance $0 $0 $0
Allowance for impaired loans $552 $485 $382
For the three month period ended
March 31,
1996 1995
------ ------
Average investment in impaired loans $3,771 $1,745
Interest income recognized on
impaired loans (all cash-basis method) $32 $12
5
CODORUS VALLEY BANCORP, INC.
Notes to Consolidated Financial Statements, continued
Note 4-Analysis of Allowance for Loan Losses
Changes in the allowance for loan losses for the three month period
ended March 31, were as follows:
(dollars in thousands) 1996 1995
------ ------
Balance-January 1, $2,286 $2,249
Provision charged to operating expense 58 1
Loans charged off (61) (20)
Recoveries 23 15
------ ------
Balance-March 31, $2,306 $2,245
====== ======
6
CODORUS VALLEY BANCORP, INC.
Management's Discussion of Consolidated Financial Condition and
Results of Operations
The consolidated earnings of Codorus Valley Bancorp, Inc. (the Corporation),
were derived from the operations of its wholly-owned subsidiary, Peoples Bank
of Glen Rock (the Bank). This discussion is intended to enhance the reader's
understanding of the financial statements, notes to financial statements, and
tables appearing elsewhere in this report.
Three months ended March 31, 1996
compared to three months ended March 31, 1995
RESULTS OF OPERATIONS
Net income for the current three month period was $704,000, up $100,000 or
16.6% above the $604,000 earned in the first quarter of 1995. The increase in
net income was due primarily to a larger volume of earning assets and a
reduction in FDIC deposit insurance expense. Earnings per share,
retroactively adjusted for stock dividends, was $.67 as of March 31, 1996
compared to $.58 as of March 31, 1995. For the three month period
(annualized) of 1996, the return on average assets (ROA) and return on
average equity (ROE) were 1.20% and 13.1%, respectively, compared to 1.11%
and 13.3%, respectively, for 1995.
At March 31, 1996, total assets approximated $237 million, reflecting a $16
million or 7.2% increase above March 31, 1995. Book value per share,
retroactively adjusted for stock dividends, was $20.31 on March 31, 1996,
compared to $18.03 on March 31, 1995. The Corporation's capital remained
sound as evidenced by a Tier I Risk-Based Capital Ratio of 13.8% and a Total
Risk-Based Capital Ratio of 15.1% at March 31, 1996.
An explanation of the factors and trends that caused changes between the two
periods, by major earnings category, follows.
Total interest income for the current three month period was $4,571,000, up
$256,000 or 5.9% above the $4,315,000 earned in the same period of 1995.
The $256,000 increase in interest income was due primarily to a larger volume
of earning assets. The average volume of securities available-for-sale
increased $7.2 million, and loans (including loans held-for-sale) increased
$4.3 million in 1996 compared to 1995. The yield on loans was constrained in
the current period due to a higher level of nonperforming commercial loans.
Total interest expense for the current three month period was $2,185,000, up
$188,000 or 9.4% above the $1,997,000 incurred for the same period in 1995.
The $188,000 increase in interest expense was due primarily to a larger
volume of interest bearing deposits, principally time deposits.
7
CODORUS VALLEY BANCORP, INC.
Net interest income for the current three month period was $2,386,000, up
$68,000 or 2.9% above the $2,318,000 earned in the same period of 1995. The
increase in current period net interest income was achieved primarily from a
larger average volume of earning assets.
The provision (expense) for possible loan losses was $58,000 for the current
three month period compared to $1,000 for the same period in 1995. The prior
period provision was unusually low due to a $270,000 loan loss recovery in
December 1994 which boosted the allowance for loan losses (reserve).
Total non-interest income for the current three month period was $228,000, up
$76,000 or 50% above the first quarter in 1995. The prior period contained a
$62,000 loss from the infrequent sale of investment securities. To achieve
comparability in non-interest income from normal operations, it is necessary
to exclude the $62,000 loss from prior period income. On an adjusted basis,
total non-interest income for the current quarter increased $14,000 or 6.5%
above 1995. In the period ahead non-interest income is expected to increase
based on normal business growth.
Total non-interest expense for the current three month period was $1,538,000,
down $76,000 or 4.7% below the $1,614,000 incurred for the same period in
1995. The decrease in total non-interest expense was primarily the result of
a $110,000 reduction in FDIC deposit insurance expense. For the first quarter
of 1996, the FDIC charged well capitalized and well managed commercial bank
members a minimum membership fee of $500 per quarter. It is possible however,
that later in 1996 the U.S. Congress will require commercial banks to pay a
portion of the annual Financing Corporation ("FICO") bond obligation. FICO
was created to help resolve the financial crisis within the savings & loan
insurance fund during the late 1980's. This policy issue, including effective
date, assessment rate, obligation period, etc., is currently under
congressional review. Accordingly, the ultimate effect of this provision
cannot be determined at this time. However, such a provision, if enacted into
law, may have an adverse impact on future results of operations.
In addition to the reduction in current period FDIC deposit insurance
expenses, an explanation of other notable changes follows. Salaries and
benefits expense increased $41,000 due to normal merit raises and planned
staff additions. Furniture and equipment expense declined $38,000 due to a
decline in depreciation expense since the Bank's mainframe computer system
was fully depreciated in the latter part of 1995. Mainframe computer system
expense will commence in September 1996 when the Bank installs a new system.
The projected annual expense will approximate $120,000 for the new system.
Professional and legal expense increased $55,000 in the current period
because prior period expenses were unusually low due to a partial insurance
reimbursement associated with a large loan loss in 1994 which was
attributable to a former Bank officer. Acquired real estate (net) expense
declined $45,000 in the current period due to a reduction in the size of the
portfolio, and a gain from the sale of acquired assets. In the period ahead,
it is probable non-interest expenses will increase due to planned expansion,
staff additions, and automation.
8
CODORUS VALLEY BANCORP, INC.
The provision for income taxes in the current quarter increased $63,000 above
the same quarter in 1995 due to a higher level of pretax earnings.
CREDIT RISK AND LOAN QUALITY
Table 1, Nonperforming Assets and Past Due Loans, depicts an upward trend in
the volume of nonperforming assets, and related ratios. An explanation for
this trend is provided below.
Impaired loans, the major component of total nonperforming assets, increased
$2,304,000 or 111% since March 31, 1995 to a current level of $4,374,000. The
overall increase was caused primarily by four commercial loan relationships
which totalled $2,012,000. These loan relationships range from $323,000 to
$858,000, vary by industry, and are generally well collaterized. Another
factor contributing to the increase in impaired loans was a change in
strategy relative to proactive loan classification and aggressive recovery.
At March 31, 1996 total impaired loans were comprised of twenty eight
relationships, principally commercial loan relationships, which ranged in
size from $7,000 to $858,000. A loss reserve, which is evaluated quarterly,
has been established for accounts that appear to be under-collateralized.
Efforts to modify contractual terms for individual accounts or liquidate
collateral assets are proceeding as quickly as potential buyers can be
located and legal constraints permit.
The other component of nonperforming assets, assets acquired in foreclosure
(net of a related reserve) declined $309,000 or 48% since March 31, 1995 to
a level of $331,000 due primarily to liquidations. Assets acquired (also
known as OREO) consist primarily of improved real estate from three
commercial loan customers in unrelated businesses. Generally Accepted
Accounting Principles require that assets taken in satisfaction of debt be
accounted for on an individual asset basis, at the lower of (a) fair value
minus estimated costs to sell or (b) cost. During the current period the
Corporation did not record a loss provision because the loss reserve was
deemed adequate. Comparatively, the Corporation recorded a $30,000 loss
provision for the first quarter of 1995 to reflect a decline in the estimated
fair value of assets acquired. Efforts to liquidate assets acquired are
proceeding as quickly as potential buyers can be located and legal
constraints permit.
At March 31, 1996, loans past due 90 days or more and still accruing interest
totalled $875,000. Most of this category was comprised of one commercial loan
relationship which amounted to $657,000. Generally, loans in the past due
category are well collateralized and in the process of collection. The
current level of past due loans is closely monitored and believed to be
within a manageable range.
At March 31, 1996, no potential problem loans, as defined by the Securities
and Exchange Commission, were identified by management. At that time
9
CODORUS VALLEY BANCORP, INC.
management was monitoring $9,700,000 of loans for which the ability of the
borrower to comply with present repayment terms was uncertain. These loans
were not included in the above disclosure. They are monitored closely, and
management presently believes that the allowance for loan losses is adequate
to cover anticipated losses that may be attributable to these loans.
Table 2, Analysis of Allowance for Loan Losses, depicts a $2,306,000
allowance (reserve) at March 31, 1996. The reserve as a percentage of total
loans was 1.46% at March 31, 1996, approximately the same as March 31, 1995.
Based on a recent evaluation of potential loan losses, management believes
that the allowance is adequate to support any reasonably foreseeable level of
losses that may arise. Ultimately, however, the adequacy of the allowance is
largely dependent upon future economic factors beyond the Corporation's
control. With this in mind, additions to the allowance for loan losses may
be required in future periods.
LIQUIDITY
The loan-to-deposit ratio was 74% at March 31, 1996, compared to 76% at
September 30, 1994. The ratio for both periods was within the 70-80% range
that the Corporation uses for liquidity policy purposes.
STOCKHOLDERS' EQUITY (CAPITAL)
Total stockholders' equity, or capital, was $21,232,000 at March 31, 1996,
compared to $18,675,000 at March 31, 1995. Growth in equity during the
current period was due to earnings retention from profitable operations and
an increase in unrealized gains, net of taxes, on securities available for
sale. Book value per share, retroactively adjusted for stock dividends, was
$20.31 on March 31, 1996, compared to $18.03 on March 31, 1995.
On April 9, 1996, the Board of Directors declared a regular quarterly cash
dividend of $.17 per share, payable on or before May 14, 1996, to
stockholders of record April 23, 1996. Payment of this cash dividend will
bring total cash dividends through May 1996 to $.40 per share, up $.02 or
5.3% above the $.38 paid through May 1995. Also on April 9, 1996, the Board
declared a 5% stock dividend, payable on or before June 13, 1996, to
stockholders of record April 23, 1996. The stock dividend is another method
of enhancing the value of our shareholders investment.
At March 31, 1996, the Corporation's Tier I Risk-Based Capital Ratio was
13.8% and its Total Risk-Based Capital Ratio was 15.1%. Both capital ratios
exceeded the minimum federal regulatory requirements for well capitalized
banks of 6% and 10%, respectively.
As previously disclosed in the Form 10-K for the period ended December 31,
1995, the Corporation is progressing with its plans to replace and relocate
10
CODORUS VALLEY BANCORP, INC.
its headquarters facility, as well as the Bank's replacement of its aging
mainframe computer system. Additionally, the Bank continues to seek ways to
expand its branch network. Planned capital investments relative to expansion
and automation could reduce Corporate net income and capital growth in the
short term; however, these expenditures are deemed necessary to grow market
share and net income over the long term. We believe that these investments
are an important part of the overall strategy to achieve the goal of
enhancing long term shareholder value.
OTHER MATTERS
As of March 31, 1996, the Bank reclassified approximately $7 million in fixed
rate residential mortgage loans as held-for-sale. In accordance with GAAP,
these loans are shown separately on the Balance Sheet and accounted for at
the lower of cost or market. Subsequent to March 31, 1996, this $7 million
loan portfolio was sold in an effort to manage interest rate risk. The Bank
recorded a $7,500 pre-tax gain on the sale, and retained servicing rights.
As previously reported in Form 10-K for the period ended December 31, 1995,
the Pennsylvania Department of Banking completed a routine examination of the
Bank, based on a September 30, 1995 examination date. Based on information
given to management, no significant exceptions were noted.
11
CODORUS VALLEY BANCORP, INC.
Table 1 - Nonperforming Assets and Past Due Loans
March 31, December 31, March 31,
(dollars in thousands) 1996 1995 1995
------ ------ ------
Impaired loans $4,374 $3,583 $2,070
Assets acquired in foreclosure,
net of reserve 331 695 640
------ ------ ------
Total nonperforming assets $4,705 $4,278 $2,710
====== ====== ======
Loans past due 90 days or more
and still accruing interest $875 $1,755 $140
Ratios:
Impaired loans as a % of
total period-end loans 2.76% 2.24% 1.34%
Nonperforming assets as a % of
total period-end loans and net
assets acquired in foreclosure 2.96% 2.66% 1.75%
Nonperforming assets as a % of
total period-end stockholders'
equity 22.16% 20.34% 14.51%
Allowance for loan losses as a
multiple of impaired loans .5x .6x 1.1x
Interest not recognized on impaired
loans at period-end:(1)
Contractual interest due $295 $306 $162
Interest revenue recognized 32 120 12
---- ---- ----
Interest not recognized in operations $263 $186 $150
==== ==== ====
(1) This table includes interest not recognized on loans which were
classified as impaired at period-end. While every effort is being
made to collect this interest revenue, it is probable a portion will
never be recovered.
12
CODORUS VALLEY BANCORP, INC.
Table 2-Analysis of Allowance for Loan Losses
(dollars in thousands) 1996 1995
------ ------
Balance-January 1, $2,286 $2,249
Provision charged to operating expense 58 1
Loans charged off:
Commercial 0 0
Real estate-mortgage 0 0
Consumer 61 20
------ ------
Total loans charged off 61 20
Recoveries:
Commercial 18 8
Real estate-mortgage 0 0
Consumer 5 7
------ ------
Total recoveries 23 15
------ ------
Net charge-offs 38 5
Balance-March 31, $2,306 $2,245
====== ======
Ratios:
Net charge-offs (annualized) to average
total loans .09% 0.01%
Allowance for loan losses to total loans
at period-end 1.46% 1.46%
Allowance for loan losses to impaired loans
and loans past due 90 days or more 43.9% 101.6%
13
CODORUS VALLEY BANCORP, INC.
PART II - Other Information:
Item 1. Legal proceedings
Except as previously reported, in the opinion of the management of the
Corporation and the Bank, there are no proceedings pending to which the
Corporation and the Bank is a party or to which their property is subject,
which, if determined adversely to the Corporation and the Bank, would be
material in relation to the Corporation's and the Bank's undivided profits or
financial condition. Except as previously reported, there are no proceedings
pending other than ordinary routine litigation incident to the business of
the Corporation and the Bank. In addition, no material proceedings are
pending or are known to be threatened or contemplated against the Corporation
and the Bank by government authorities.
Item 2. Changes in the rights of the Company's security holders -
nothing to report.
Item 3. Defaults by the Company on its senior securities - nothing to report.
Item 4. Results of votes of security holders - nothing to report.
Item 5. Other information - nothing to report.
Item 6. Exhibits and reports on Form 8-K
(a) Exhibits -
The Corporation filed a Form 8-K, via EDGAR, dated March 25, 1996. It
contained a comprehensive electronic filing of the Registrant's Amended
Articles of Incorporation (Exhibit 3(i)) and Amended Bylaws (Exhibit 3(ii)),
and is hereby incorporated by reference.
(b) Reports on Form 8-K - see Item 6(a) above.
14
CODORUS VALLEY BANCORP, INC.
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.
Codorus Valley Bancorp, Inc.
(Registrant)
By /s/ Larry J. Miller
(principal executive officer)
Larry J. Miller,
President & CEO
Date: May 10, 1996
By /s/ Jann A. Weaver
(principal financial and
accounting officer)
Jann A. Weaver,
Assistant Treasurer &
Assistant Secretary
Date: May 10, 1996
15