<PAGE> 1
FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
(Mark One)
/X/ QUARTERLY REPORT UNDER 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 0-28070
-----------------------------
Jacksonville Bancorp, Inc.
- ------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
Texas 75-2632781
- ------------------------------- --------------------------
(State of other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
Commerce at Neches
Jacksonville, Texas 75766
- ------------------------------- ------------
(Address of principal (Zip Code)
executive office)
Registrant's telephone number, including area code: (903) 586-9861
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
----- -----
As of May 10,1996, the latest practicable date, 2,644,405 shares of the
registrant's common stock, $.01 par value, were issued and outstanding.
1
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JACKSONVILLE BANCORP, INC. AND SUBSIDIARIES
INDEX
<TABLE>
<CAPTION>
PART I. Financial Information Page
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Item 1. Financial Statements
Consolidated Statements of Financial Condition
as of September 30, 1995 (Audited) and March 31,
1996 (Unaudited) 3
Consolidated Statements of Earnings for the
Three and Six Months Ended March 31, 1996
and 1995 (Unaudited) 4
Consolidated Statements of Cash Flows for
the Six months Ended March 31, 1996 and
1995 (Unaudited) 5
Notes to Consolidated Financial Statements 6
Item 2. Managements Discussion and Analysis of 8
Financial Condition and Results of Operations
for the Three Months and Six Months Ended
March 31, 1996
</TABLE>
<TABLE>
<CAPTION>
PART II. Other Information Page
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Item 1. Legal Proceedings
Item 2. Changes in Securities
Item 3. Defaults upon Senior Securities
Item 4. Submission of Matters to a Vote of
Security Holders
Item 5. Other Information
Item 6. Exhibits and Reports on Form 8-K
Signatures
</TABLE>
2
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JACKSONVILLE BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(DOLLARS IN THOUSANDS)
ASSETS
<TABLE>
<CAPTION>
March 31, September 30,
------------- -------------
1996 1995
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(Unaudited)
<S> <C> <C>
ASSETS
Cash on hand and in banks $ 3,327 $ 2,248
Interest bearing deposits 12,174 5,803
Investment securities
Held to maturity 32,952 36,499
Available for sale 3,500 6,408
Mortgage-backed certificates
Held to maturity 8,609 3,442
Loans receivable, net 144,673 135,933
Accrued interest receivable 1,478 1,448
Foreclosed real estate, net 1,182 2,052
Premises and equipment, net 2,999 2,909
Stock in Federal Home Loan Bank of Dallas,
at cost 1,690 1,636
Federal income taxes receivable 311 628
Prepaid expenses and other assets 167 245
----------- ----------
Total assets $ 213,062 $ 199,251
=========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES
Deposits 174,961 173,811
Advances from borrowers for taxes and insurance 1,390 3,327
Note payable - Employee Stock Ownership Plan - 358
Accrued expenses and other liabilities 740 986
----------- ----------
Total liabilities 177,091 178,482
DEFERRED INCOME
Gain on sale of real estate owned 389 438
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY
Preferred stock, no par value, 5,000,000
shares authorized, none issued - -
Common stock, $.01 par value, 25,000,000
shares authorized; 2,664,405 and 1,869,750
shares issued and outstanding at 1996 and 1995,
respectively 27 19
Additional paid-in capital 22,666 6,909
Retained earnings, substantially restricted 14,585 13,944
Less:
Shares acquired by Employee Stock Ownership Plan (1,602) (358)
Shares acquired by Management Recognition Plan (73) (122)
Net of unrealized loss on decline in market value
of securities available for sale (21) (61)
----------- ----------
Total stockholder's equity 35,582 20,331
----------- ----------
Total liabilities and stockholders' equity $ 213,062 $ 199,251
=========== ==========
</TABLE>
3
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JACKSONVILLE BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
(DOLLARS IN THOUSANDS)
Unaudited
<TABLE>
<CAPTION>
SIX MONTHS ENDED THREE MONTHS ENDED
MARCH 31, MARCH 31,
-------------------------- ----------------------------
1996 1995 1996 1995
--------- --------- --------- ---------
<S> <C> <C> <C> <C>
INTEREST INCOME
Loans receivable $ 5,837 $ 4,915 $ 2,980 $ 2,500
Mortgage-backed securities 254 106 141 51
Investment securities 1,098 1,140 524 549
Other 184 132 90 81
--------- --------- --------- ---------
Total interest income 7,373 6,293 3,735 3,181
INTEREST EXPENSE
Other 10 158 - 95
Deposits 4,231 3,014 2,120 1,594
--------- --------- --------- ---------
Total interest expense 4,241 3,172 2,120 1,689
--------- --------- --------- ---------
Net interest income 3,132 3,121 1,615 1,492
PROVISION FOR LOSSES ON LOANS - (15) - (24)
--------- --------- --------- ----------
Net interest income after
provision for losses on loans 3,132 3,136 1,615 1,516
NONINTEREST INCOME
Fees and deposit service charges 520 315 287 162
Real estate operations, net 22 42 14 10
Other 45 35 30 20
--------- --------- --------- ---------
Total noninterest income 587 392 331 192
NONINTEREST EXPENSE
Compensation and benefits 1,469 1,416 779 681
Occupancy and equipment 214 258 110 133
Insurance expense 223 221 113 110
Provisions for real estate losses - 17 - 38
Other 509 563 247 249
--------- --------- --------- ---------
Total noninterest expense 2,415 2,475 1,249 1,211
INCOME BEFORE TAXES ON INCOME 1,304 1,053 697 497
TAXES ON INCOME 452 385 251 182
--------- --------- --------- ---------
Net earnings $ 852 $ 668 $ 446 $ 315
========= ========= ========= =========
Earnings per share $ .46 $ .36 $ .24 $ .17
========= ========= ========= =========
</TABLE>
4
<PAGE> 5
JACKSONVILLE BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
FOR THE SIX MONTHS ENDED MARCH 31, 1996 AND 1995
(DOLLARS IN THOUSANDS)
Unaudited
<TABLE>
<CAPTION>
1996 1995
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<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net income $ 852 $ 668
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation 85 96
Amortization/Accretion of securities 53 52
Provision for losses on loans and losses
on real estate - 2
Loans originated for sale (5,801) (3,291)
Loans sold 5,801 3,161
Gain on sale of other real estate (19) (99)
Accrual of MRP awards 49 56
ESOP compensation accrued 9 -
Change in assets and liabilities:
(Increase) Decrease in accrued interest
receivable (29) 57
(Increase) Decrease in prepaid expenses and
other assets 77 57
Increase (Decrease) in federal income taxes
receivable 317 134
Increase (Decrease) in accrued expenses and
other liabilities (247) (47)
Increase (Decrease) in deferred income (49) (74)
---------- ----------
Net cash provided by operating activities 1,098 772
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds on maturity of investment securities 13,442 7,604
Purchase of investment securities (7,000) (1,500)
Net principal payments (origination) on loans (8,195) (5,472)
Proceeds from sale of foreclosed real estate 345 738
Purchase of mortgage-backed securities (6,000) -
Principal paydowns on mortgage-back securities 832 381
Capital expenditures (175) (391)
Purchase of stock in FHLB Dallas (54) (42)
---------- ----------
Net provided by (cash used) in investing activities (6,805) 1,318
CASH FLOWS FROM FINANCING ACTIVITIES
Net increase (decrease) in deposits 1,150 2,754
Net increase (decrease) in advance payments
by borrowers for property taxes and insurance (1,937) (1,040)
Proceeds from sale of common stock 14,518 -
Dividends paid (216) (215)
Net decrease in advances from FHLB - (4,000)
Payment of ESOP loan (358) -
---------- ----------
Net cash provided by (used in)
financing activities 13,157 (2,501)
---------- ----------
Net increase (decrease) in cash and
cash equivalents 7,450 (411)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 8,051 7,002
---------- ----------
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 15,501 $ 6,591
========== ==========
</TABLE>
5
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JACKSONVILLE BANCORP, INC.
NOTES TO UNAUDITED FINANCIAL STATEMENTS
1. Basis of Presentation
The unaudited financial statements were prepared in accordance with
instructions for Form 10-Q and, therefore, do not include information
or footnotes necessary for a complete presentation of financial
position, results of operations, and cash flows in conformity with
generally accepted accounting principles. However, all adjustments
(consisting only of normal recurring adjustments) which, in the opinion
of management, are necessary for a fair presentation of the financial
statements have been included. The results of operations for the three
and six month periods ended March 31, 1996 and 1995 are not necessarily
indicative of the results which may be expected for an entire fiscal
year.
2. Conversions
On March 31, 1994, Jacksonville Savings and Loan Association
(Jacksonville completed its reorganization into the mutual holding
company form of organization whereby Jacksonville (i) formed
Jacksonville Savings and Loan Association (the Association), a
Texas-chartered stock savings and loan association, (ii) transferred
substantially all of its assets and liabilities to the Stock
Association in exchange for common stock, $.01 par value per share
(Common Stock), of the Stock Association, and (iii) reorganized from a
state-chartered mutual savings and loan association to a
federally-chartered mutual holding company known as "Jacksonville
Federal Mutual Holding Company" (the Holding Company) (collectively the
Reorganization). As part of the Reorganization, the Association issued
731,250 shares of Common Stock to members of the public and 1,137,500
shares of its Common Stock to the Holding Company.
On September 20, 1995, the Boards of Directors of the Association and
the Mutual Holding Company adopted a Plan of Conversion and Agreement
and Plan of Reorganization (Plan) which was consummated March 29, 1996.
Pursuant to the Plan, (1) the Mutual Holding Company converted to an
interim federal stock savings association and simultaneously merged
into the Association, the Mutual Holding Company ceased to exist and
the 1,137,500 shares or 60.8% of the outstanding shares of the
Association's common stock held by the Mutual Holding Company were
cancelled, and (2) the Association then merged into an interim
institution (Interim) formed as a wholly-owned subsidiary of
Jacksonville Bancorp, Inc. (the Company), a newly formed Texas
corporation formed in connection with the reorganization, with the
Association being the surviving entity; and, (3) the outstanding shares
of the Association's common stock (other than those held by the Mutual
Holding Company, which were cancelled) were converted into shares of
common stock of the Company pursuant to a ratio which resulted in the
holders of such shares owning in the aggregate approximately that same
percentage of the Company as they owned of the Association. The
Company offered for sale pursuant to the Plan additional shares equal
to 60.8% of the common shares of the Company. Consummation of the Plan
was approved by (i) the members of the Mutual Holding Company, (ii) the
stockholders of the Association, and (iii) various regulatory agencies.
6
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JACKSONVILLE BANCORP, INC.
NOTES TO UNAUDITED FINANCIAL STATEMENTS
In connection with this Plan, the Company issued 1,618,409 new shares
of stock to the public. The shares of the Association stock owned by
the public were exchanged for 1,045,996 shares of Company stock. At
March 31, 1996, 2,664,405 shares were outstanding including 202,305
shares held by the Employee Stock Ownership Plan and 13,835 shares held
by the Management Recognition Plan.
3. Earnings per share
Earnings per share for the three and six month periods ended March 31,
1996 and 1995 have been computed by dividing net earnings by the
weighted average number of shares outstanding. Shares controlled by
the ESOP are accounted for in accordance with Statement of Position
93-6 under which unallocated shares are not considered in the weighted
average number of shares of common stock outstanding.
4. Reclassification of Previous Statements
Certain items previously reported have been reclassified to conform
with the current period's reporting format.
5. New Accounting Pronouncements
In May, 1995 the Financial Accounting Standards Board issued Statement
of Financial Accounting Standards No. 122(SFAS No. 122) entitled
"Accounting for Mortgage Servicing Rights". This statement eliminates
the accounting distinction between rights to service mortgage loans for
others that are acquired through loan origination activities and those
acquired through purchase transactions. The provisions of SFAS No. 122
shall be applied prospectively in fiscal years beginning after December
15, 1995. Jacksonville adopted the provisions of SFAS No. 122
effective October 1, 1995.
In May, 1993 the Financial Accounting Standards Board issued Statement
No. 114, "Accounting by Creditors for Impairment of a Loan," which was
later amended by Statement No. 118, "Accounting by Creditors for
Impairment of a Loan-Income Recognition and Disclosures." The
Association adopted the new standards effective October 1, 1995, and
the implementation did not have a material adverse effect on the
Association's financial condition of results of operations.
In March, 1995, the Financial Accounting Standards Board issued
Statement No. 121(SFAS No. 121) entitled "Accounting for the Impairment
of Long-Lived Assets and for Long-Lived Assets to be Disposed of."
SFAS No. 122 requires that long-lived assets, certain identifiable
intangibles, and goodwill related to those assets be reviewed for
impairment whenever events or charges in circumstances indicate that
the carrying amount of an asset may not be recoverable. This Statement
is effective for financial statements for fiscal years beginning after
December 15, 1995. Management currently anticipates that the
Association will adopt the provisions of SFAS No. 121 effective October
1, 1996 and that it will not have a material adverse effect on
financial condition or results of operations.
7
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JACKSONVILLE BANCORP, INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATION
Discussion of Changes in Financial Condition from September 30, 1995 to March
31, 1996.
At March 31, 1996, the assets of Jacksonville Bancorp, Inc., (the "Company")
totaled $213.1 million, which represents an increase of $13.8 million from the
$199.3 million held on September 30, 1995 by its subsidiary, Jacksonville
Savings and Loan Association (the "Association"). The Association was acquired
by the Company on March 29, 1996, in connection with a reorganization and stock
offering consummated on that date. Assets increased in part as a result of the
stock offering that resulted in proceeds of $14.5 million.
Loans receivable, net, increased during the period by $8.7 million to $144.7
million at March 31, 1996. This increase was primarily due to management's
decision to hold most of its 15 year fixed rate loans in lieu of selling them
on the secondary market and to greater penetration of the Tyler, Texas
residential mortgage market associated with its newly established full service
Tyler branch. Investments in interest bearing deposits increased by $6.4
million to $12.2 million at March 31, 1996 due primarily as the result of
deposits from the proceeds of the sale of stock. Mortgage backed certificates
increased by $5.2 million to $8.6 million at March 31, 1996 as a result of a
decision by management to invest in mortgage backed certificates rather than
investing in lower yielding Treasury and agency securities. Investment
securities held to maturity and investment securities available for sale
decreased by $3.5 million and $2.9 million, to $33.0 million and $3.5 million,
respectively, at March 31, 1996. This decrease was primarily due to the
funding of loans that the Association elected to retain in its loan portfolio
as well as funds used to satisfy the request for withdrawals.
Deposits increased by $1.1 million from September 30, 1995 to March 31, 1996 to
$175.0 million, while advances from borrowers for taxes and insurance decreased
by $1.9 million to $1.4 million at March 31, 1996. The decrease in advances
from borrowers for taxes and insurance was primarily due to the payment of real
estate taxes which typically takes place in the last quarter of the calendar
year.
Foreclosed real estate decrease by $870,000 to $1.2 million at March 31, 1996.
This decline was primarily due to the Association's continued efforts to
dispose of its foreclosed property portfolio.
Premises and equipment increased by $90,000 from $2.9 million at September 30,
1995, to $3.0 million at March 31, 1996. This increase is primarily due to the
purchase of a single family residence and lot adjoining the Branch Office site
in Tyler, Texas in order to provide for possible future expansion of the Branch
Office location.
Federal income tax receivable decreased by $317,000 from $628,000 to $311,000
at March 31, 1996 primarily from a reduction of the deferred tax receivable, as
well as, the timing of Federal Income Tax payments.
Prepaid expenses decreased by $78,000 from $245,000 at September 30, 1995, to
$167,000 at March 31,
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1996. This decline was primarily due to the reduction realized in prepaid
insurance premiums, as well as savings on insurance coverage pertaining to real
estate owned. Notes payable -- Employee Stock Ownership Plan decreased from
$358,000 to $0 at March 31, 1996, due to payment of the note and transfer to
Jacksonville IHC, Inc., a wholly-owned subsidiary of the Company. Accrued
expenses decreased by $246,000 from $986,000 to $740,000 at March 31, 1996.
Comparison of Operating Results for the three and six months ended March 31,
1996 and 1995
Net income for the three months ended March 31, 1996 totaled $446,000 as
compared to $315,000 for the three months ended March 31, 1995. This increase
of $131,000 was primarily due to the increase in interest income not fully
offset by an increase in interest expense. Net income for the six months ended
March 31, 1996 was $852,000 compared to $668,000 for the same period in 1995.
The increase of $184,000 was primarily due to the increase in the loan
portfolio.
Net Interest Income
The Company's net interest income before provision for losses on loans was $1.6
million for the three months ended March 31, 1996. This amount represents an
increase of $123,000 from the $1.5 million of net interest income before
provision for losses on loans for the three month period ended March 31, 1995.
Net interest income before provision for losses on loans for the six months
ended March 31, 1996, increased by $11,000 from the comparable period ended
March 31, 1995 to $3.1 million. The increase for the three months and six
months ended March 31, 1996 was primarily due to an increase in interest from
the loan portfolio.
Provisions for Losses on Loans
The provisions for possible loan losses are the result of management's decision
to have adequate reserves based on historical experience, industry standards,
the amount of nonperforming assets, general economic conditions in the
Company's market area, and the collectability of the loan portfolio. Based on
these factors, the loan loss provisions were increased by $24,000 during the
three months ended March 31, 1996, and by $15,000 for the six months ended
March 31, 1996 from the comparable prior periods.
Non-Interest Income
Non-interest income consists primarily of fees collected on mortgage loans,
service charges on deposit accounts and real estate operations. This income
increased by $139,000 for the three month period ended March 31, 1996 as
compared to the three month period ended March 31, 1995, amounting to $331,000
and $192,000 for the respective periods. For the six month period ended March
31, 1996, non-interest income increased $195,000 from $392, 000 to $587,000
for the six months ended March 31, 1996. This increase was due primarily to
increases in fees and deposit service charges collected during the respective
periods.
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Non-Interest Expense
Non-interest expense increased by $38,000 to $1.2 million for the three months
ended March 31, 1996 when compared to the three months ended March 31, 1995.
This increase consisted primarily of the increase in compensation and benefits,
plus an increase in insurance expense that was not fully offset by a reduction
in occupancy and equipment expense as well as provisions for losses on loans.
Non-interest expense decreased by $60,000 for the six months ended March 31,
1996 to $2.4 million. This decrease was primarily due to a $44,000 reduction
in occupancy and equipment expense, $17,000 reduction in provision for losses
on loans and a $54,000 reduction in other miscellaneous expense. These
reductions were offset by a $53,000 increase in compensation and benefits.
Taxes
The provision for income tax amounted to $251,000 and $452,000 for the three
and six months ended March 31, 1996, respectively, compared to $182,000 and
$385,000 during the three and six months ended March 31, 1995, respectively.
The higher provision for income tax is due to an increase in earnings.
Liquidity
Office of Thrift Supervision ("OTS") regulations require the Association
subsidiary to maintain an average daily balance of liquid assets (cash, certain
time deposits, bankers' acceptances and specified United State Government,
state or federal obligations) equal to a monthly average of not less than 5% of
its net withdrawable deposits plus short-term borrowings. For the month ended
March 31, 1996, the Association's average liquidity position was $39.987
million or 23.11 % compared to $48.393 million or 28.43 % at September 30,
1995.
Regulatory Capital Requirements
The Association subsidiary is required to maintain specified amounts of capital
pursuant to OTS regulations. Under these standards, savings institutions must
maintain "tangible" capital equal to at least 1.5% of adjusted total assets,
"core" capital equal to at least 3% of adjusted total assets and "total"
capital (a combination of core and "supplementary" capital) equal to at least
8.0% of "risk-weighted" assets. At March 31, 1996, the Association's tangible,
core and total capital were, respectively 13.15 %, 13.15 % and 28.16 %, which
exceeded applicable requirements.
Recent Developments
The Company has purchased a single family dwelling and lot located adjacent to
its Branch Office site in Tyler, Texas . The acquisition of this site will
afford the Company ownership of the entire platted subdivision for possible
future expansion. The Company is also in the process of building an annex to
its Palestine, Texas Branch Office that would be used to house all of the loan
personnel. It is the Company's intent to expand its consumer loan personnel in
this branch as well as expand its existing loan department. In addition to the
annex in Palestine, the Company has just entered into a contract to purchase
the
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adjoining lot and older home in the event the property is needed for future
expansion of its drive-in facility
11
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JACKSONVILLE BANCORP, INC.
PART II - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
The Jacksonville Bancorp, Inc., is involved only in routine legal
proceedings occurring in the ordinary course of business which in the
aggregate are believed by management to be immaterial to the financial
condition of the Association.
ITEM 2. CHANGES IN SECURITIES
Not Applicable
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
Not Applicable
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
Not Applicable
ITEM 5. OTHER INFORMATION
Not Applicable
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
Not Applicable
12
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JACKSONVILLE 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.
JACKSONVILLE BANCORP, INC.
DATE: May 10, 1996 BY: /s/ Charles Broadway
---------------------------- -------------------------------
Charles Broadway, President
DATE: May 10, 1996 BY: /s/ Bill W. Taylor
---------------------------- -------------------------------
Bill W. Taylor, Sr. Vice Pres.
and Chief Financial Officer
13
<TABLE> <S> <C>
<ARTICLE> 9
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM CONSOLIDATED
STATEMENTS OF FINANCIAL CONDITION AT MARCH 31, 1996 AND SEPTEMBER 30, 1995;
CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE THREE AND SIX MONTHS ENDED MARCH
31, 1996 AND 1995 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FORM
10-Q QUARTER ENDED MARCH 31, 1996.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> SEP-30-1995
<PERIOD-START> JAN-01-1996
<PERIOD-END> MAR-31-1996
<CASH> 3,327,000
<INT-BEARING-DEPOSITS> 12,174,000
<FED-FUNDS-SOLD> 0
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 3,500,000
<INVESTMENTS-CARRYING> 32,952
<INVESTMENTS-MARKET> 38,561,000
<LOANS> 144,673,000
<ALLOWANCE> 0
<TOTAL-ASSETS> 213,062,000
<DEPOSITS> 174,961,000
<SHORT-TERM> 0
<LIABILITIES-OTHER> 1,129,000
<LONG-TERM> 0
0
0
<COMMON> 27,000
<OTHER-SE> 175,874
<TOTAL-LIABILITIES-AND-EQUITY> 213,062,000
<INTEREST-LOAN> 2,980,000
<INTEREST-INVEST> 665,000
<INTEREST-OTHER> 90,000
<INTEREST-TOTAL> 3,735,000
<INTEREST-DEPOSIT> 2,120,000
<INTEREST-EXPENSE> 2,120,000
<INTEREST-INCOME-NET> 1,615,000
<LOAN-LOSSES> 0
<SECURITIES-GAINS> (85,000)
<EXPENSE-OTHER> 247,000
<INCOME-PRETAX> 697,000
<INCOME-PRE-EXTRAORDINARY> 697,000
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 446,000
<EPS-PRIMARY> .24
<EPS-DILUTED> .24
<YIELD-ACTUAL> 3.506
<LOANS-NON> 261,000
<LOANS-PAST> 0
<LOANS-TROUBLED> 389,000
<LOANS-PROBLEM> 1,192,000
<ALLOWANCE-OPEN> 1,000,000
<CHARGE-OFFS> 0
<RECOVERIES> 0
<ALLOWANCE-CLOSE> 1,000,000
<ALLOWANCE-DOMESTIC> 1,000,000
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 1,000,000
</TABLE>
