UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 1997 Commission File Number 1-14274
-------------- -------
CITIZENS FIRST FINANCIAL CORP.
-----------------------------------------------------------------
(Exact name of small business issuer as specified in its charter)
Delaware 37-1351861
- ------------------------------- ---------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
301 Broadway, Normal, Illinois 61761
------------------------------------
(Address of principal executive offices)
(309) 452-1102
--------------
(Issuer's telephone number, including area code)
Check whether the issuer: (1) filed all reports required to be filed by
Section 13 or 15(d) of the Securities Exchange Act of 1934 during the past
twelve 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.
(1) |X| Yes | | No
(2) |X| Yes | | No
Indicate the number of shares outstanding of each of the issuer's classes
of common stock, as of the latest practicable date.
As of April 30, 1997, the Registrant had 2,755,900 shares of Common Stock
outstanding .
Transitional Small Business Disclosure Format
YES | | NO |X|
<PAGE>
Table of Contents
PART I - FINANCIAL INFORMATION Page
- ------------------------------ ----
Item 1. Financial Statements
Consolidated Balance Sheets as of March 31, 1997
and December 31, 1996 1
Consolidated Income Statements for the Three
Months Ended March 31, 1997 and 1996 2
Consolidated Statement of Changes in
Stockholders' Equity 3
Consolidated Statement of Cash Flows For the
Three Months Ended March 31, 1997 and 1996 4
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 7
PART II - OTHER INFORMATION
- ---------------------------
Item 1. Legal Proceedings 12
Item 2. Change in Securities 12
Item 3. Defaults Upon Senior Securities 12
Item 4. Submission of Matters to a Vote of
Security Holders 12
Item 5. Other Information 12
Item 6. Exhibits and Reports on Form 8-K 13
SIGNATURES 14
<PAGE>
PART I. -- FINANCIAL INFORMATION
Citizens First Financial Corp. and Subsidiary
Consolidated Balance Sheets
As of March 31, 1997 and December 31, 1996
<TABLE>
<CAPTION>
March 31, December 31,
1997 1996
--------- ---------
(Unaudited and in thousands)
<S> <C> <C>
ASSETS
Cash and due from banks $ 3,492 $ 4,352
Interest-bearing demand deposits 2,978 2,655
--------- ---------
Total cash and cash equivalents 6,470 7,007
Investment securities:
Available for sale 29,624 28,371
Held to maturity 500 1,000
--------- ---------
Total investment securities 30,124 29,371
Mortgage loans held for sale 3,665 3,027
Loans 218,810 211,554
Allowance for loan losses (527) (512)
--------- ---------
Net loans 218,283 211,042
Premises and equipment 7,485 5,778
Federal Home Loan Bank of Chicago stock 1,662 1,662
Foreclosed real estate 505 697
Other assets 3,420 3,053
--------- ---------
Total assets $ 271,614 $ 261,637
========= =========
LIABILITIES AND EQUITY CAPITAL
Liabilities
Deposits $ 199,786 $ 202,125
Federal Home Loan Bank Advances 29,242 16,250
Advances by borrowers for taxes and insurance 1,157 751
Other liabilities 1,663 2,162
--------- ---------
Total liabilities 231,848 221,288
========= =========
Equity Capital
Preferred stock, $.01 par value
Authorized and unissued - 1,000,000 shares -- --
Common stock, $.01 par value; 8,000,000 shares
authorized, 2,817,500 shares issued,
2,499,740 shares outstanding 28 28
Paid-in-capital 27,062 27,024
Retained earnings - substantially restricted 16,715 16,295
Net unrealized loss on securities available for sale (320) (297)
Less:
Treasury shares (416) 0
Unearned incentive plan shares (1,451) (769)
Unearned Employee Stock Option Plan shares (1,852) (1,932)
--------- ---------
Total equity capital 39,766 40,349
--------- ---------
Total liabilities and equity capital $ 271,614 $ 261,637
========= =========
</TABLE>
See notes to consolidated financial statements.
1
<PAGE>
Citizens First Financial Corp. and Subsidiary
Consolidated Income Statements
<TABLE>
<CAPTION>
For the three months ended
March 31, 1997 March 31, 1996
-------------- --------------
(Unaudited and in thousands)
<S> <C> <C>
Interest income:
Interest on loans $ 4,297 $ 4,087
Interest on investments 526 208
---------- -------
Total interest income 4,823 4,295
Interest expense:
Interest on savings deposits 2,412 2,615
Interest on borrowings 356 0
---------- -------
Total interest expense 2,768 2,615
Net interest income 2,055 1,680
Provision for loan losses 75 38
---------- -------
Net interest income after provision for
loan losses 1,980 1,642
Noninterest income:
Loan servicing fees 128 167
Net realized losses on sales of available for sale
securites 0 (33)
Net gains on loan sales 48 59
Other operating income 218 223
---------- -------
Total noninterest income 394 416
---------- -------
Noninterest expense:
Salaries and employee benefits 1,010 831
Net occupancy and equipment expenses 217 188
Deposit insurance expense 25 119
Data processing fees 103 98
Other operating expense 331 286
---------- -------
Total noninterest expense 1,686 1,522
---------- -------
Income before income tax 688 536
Income tax expense 268 208
---------- -------
Net income $ 420 $ 328
========== =======
Net earnings per share
Assuming no dilution $ 0.16 N/A
Weighted average shares outstanding 2,500,978 N/A
Assuming full dilution $ 0.14 N/A
Weighted average shares outstanding 2,835,185 N/A
</TABLE>
See notes to consolidated financial statements.
2
<PAGE>
Citizens First Financial Corp. and Subsidiary
Statement of Changes in Stockholders' Equity
(Unaudited and in thousands except share information)
<TABLE>
<CAPTION>
Net
Unrealized
Common Stock Gain (Loss)
------------------------ Unearned on Securities
Shares Paid-in Retained ESOP Available
Outstanding Amount Capital Earnings Shares for Sale
----------- ------ --------- -------- ----------- -------------
<S> <C> <C> <C> <C> <C> <C>
Balance December 31, 1996 2,568,611 $ 28 $ 27,024 $16,295 ($1,932) ($298)
ESOP shares allocated 8,050 38 80
MRP shares earned 6,479
MRP shares acquired (54,100)
Treasury shares acquired (29,300)
Net income for the three months ended
March 31, 1997 420
Net change in unrealized gain (loss) on
securities available for sale (22)
----------- ------ --------- -------- --------- -----------
Balance March 31, 1997 2,499,740 $ 28 $ 27,062 $16,715 ($1,852) ($320)
=========== ====== ========= ======== ========= ===========
<CAPTION>
Unearned
Incentive
Plan Treasury
Shares Stock Total
--------- -------- -------
<S> <C> <C> <C>
Balance December 31, 1996 ($ 769) $ 0 $40,348
ESOP shares allocated 118
MRP shares earned 71 71
MRP shares acquired (753) (753)
Treasury shares acquired (416) (416)
Net income for the three months ended
March 31, 1997 420
Net change in unrealized gain (loss) on
securities available for sale (22)
--------- -------- --------
Balance March 31, 1997 ($1,451) ($ 416) $39,766
========= ======== ========
</TABLE>
See notes to consolidated financial statements
3
<PAGE>
Citizens First Financial Corp. and Subsidiary
Consolidated Statement of Cash Flows
<TABLE>
<CAPTION>
For the three months ended
March 31, 1997 March 31, 1996
-------------- --------------
(Unaudited and in thousands)
<S> <C> <C>
Operating Activities:
Net income $ 420 $ 328
Adjustments to reconcile net income to net
cash provided by operating activities:
Provision for loan losses 75 38
Investment securities (gains) losses 0 33
ESOP compensation expense 117 0
Incentive plan compensation expense 71 0
Investment securities amortization (accretion), net 10 51
Net (gains) losses on sale of loans (48) (59)
Depreciation 110 100
Loans originated for sale (3,760) (6,310)
Proceeds from sale of loans 3,170 6,369
Change in:
Other liabilities (499) (291)
Other assets (353) (949)
-------- -------
Net cash (used) provided by operating activities (687) (690)
Investing Activities:
Purchase of securities available for sale (1,992) 0
Proceeds from maturities and principal paydowns on securities
available for sale 692 644
Proceeds from sales of securities available for sale 0 2,015
Purchase of securities held-to maturity 0 (2,204)
Proceeds from maturities and principal paydowns on
securities held-to-maturity 500 2,001
Redemption (purchase) of FHLB stock 0 12
Other net changes in loans (7,316) (2,235)
Proceeds from sale of foreclosed property 192 65
Purchase of premises and equipment (1,816) (113)
-------- -------
Net cash (used) provided by investing activities (9,740) 185
Financing Activities:
Net change in deposits (2,339) 3,217
Proceeds from FHLB advances 12,992 0
Purchase of treasury stock (416) 0
Purchase of incentive plan shares (753) 0
Net changes in advances by borrowers for taxes and insurance 406 387
-------- -------
Net cash (used) provided by financing activities 9,890 3,604
Net change in cash and cash equivalents (537) 3,099
Cash and cash equivalents, beginning of period 7,007 6,602
-------- -------
Cash and cash equivalents, end of period $ 6,470 $ 9,701
======== =======
Additional cashflows and supplementary information:
Interest paid $ 2,645 2,533
Income tax paid 0 17
Loans transferred to foreclosed property 0 168
</TABLE>
See notes to consolidated financial statements.
4
<PAGE>
CITIZENS FIRST FINANCIAL CORP.
Notes to Consolidated Financial Statements
1. Background Information
----------------------
Citizens First Financial Corp. (the "Company") was incorporated in
January, 1996 and on May 1, 1996 acquired all of the outstanding shares of
common stock of Citizens Savings Bank, F.S.B. (the "Bank") upon the Bank's
conversion from a federally chartered mutual savings bank to a federally
chartered stock savings bank. The Company purchased 100% of the outstanding
capital stock of the Bank using 50% of the net proceeds from the Company's
initial stock offering which was completed on May 1, 1996. Accordingly, the data
relating to period prior to May 1, 1996 represents the consolidated data of the
Bank and its subsidiaries. The data subsequent to May 1, 1996 represents the
consolidated data of the Company and the Bank.
The Company sold 2,817,500 shares of common stock in the initial offering
at $10.00 per share, including 225,400 shares purchased by the Bank's Employee
Stock Option Plan (the "ESOP"). The ESOP shares were acquired by the Bank with
proceeds from a Company loan totaling $2,254,000. The net proceeds of the
offering totaled $27,012,000; $28,175,000 less $1,163,000 in underwriting
commissions and other expenses. The Company's stock is traded on the American
Stock Exchange under the symbol "CBK".
The acquisition of the Bank by the Company was accounted for as a
"pooling-of-interests" under generally accepted accounting principles. The
application of the pooling-of-interests method records the assets and
liabilities of the merged companies on a historical cost basis with no goodwill
or other intangible assets being recorded.
5
<PAGE>
2. Statement of Information Furnished
----------------------------------
The accompanying unaudited consolidated financial statements have been
prepared in accordance with Form 10-QSB instructions and Item 310(b) of
Regulation S-B, and in the opinion of management contains all adjustments
necessary to present fairly the financial position as of March 31, 1997 and
December 31, 1996, the results of operations for the three months ended March
31, 1997 and 1996 and the cash flows for the three months ended March 31, 1997
and 1996. All adjustments to the financial statements were normal and recurring
in nature. These results have been determined on the basis of generally accepted
accounting principles. The results of operations for the three months ended
March 31, 1997 are not necessarily indicative of the results to be expected for
the entire fiscal year.
The consolidated financial statements are those of the Company and the
Bank. These consolidated financial statements should be read in conjunction with
the audited financial statements and notes thereto, dated January 24, 1997,
included in the Company's 1996 Annual Report to Shareholders.
3. Earnings Per Share
------------------
Net earnings per share is computed based upon the weighted average common
and common equivalent shares outstanding for periods subsequent to the Bank's
conversion to a stock savings bank on May 1, 1996.
6
<PAGE>
Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operation
Citizens First Financial Corp. (the "Company") is the holding company for
Citizens Savings Bank F.S.B. (the "Bank"). The Bank has two wholly-owned service
corporations, CSL Service Corporation and Fairbury Service Corp. CSL Service
Corporation is an Illinois-chartered corporation that has been inactive, but
began the sale of tax-deferred annuities at the end of 1996. Fairbury Financial
Services Corp. is an Illinois-chartered corporation that currently services
previously sold tax-deferred annuities and long-term care insurance policies
that it sold on an agency basis.
Prior to the Company's acquisition of the Bank on May 1, 1996, the Company
had no material assets or operations. Accordingly, the following information
reflects management's discussion and analysis of the financial condition and
results of operations for the Bank for the period prior to May 1, 1996 and for
the Company and Bank subsequent to the period beginning May 1, 1996.
On September 30, 1996, the President signed into law the Deposit Insurance
Funds Act of 1996 (the "Funds Act") which, among other things, imposed a special
one-time assessment on SAIF member institutions to recapitalize SAIF. The Funds
Act also spreads the obligation for payment of the Financing Corporation
("FICO") bonds across all SAIF and Bank Insurance Fund ("BIF") members. As of
January 1, 1997, BIF deposits will be assessed FICO payment of 1.3 basis points,
while SAIF deposits will pay an estimated 6.4 basis points on the FICO bonds.
Full pro rata sharing of the FICO payments between BIF and SAIF members will
occur on the earlier of January 1, 2000 or the date BIF and SAIF are merged. The
Funds Act specifies that BIF and SAIF will be merged on January 1, 1999 provided
no savings associations remain as of that time. As a result of the Funds Act,
the FDIC lowered SAIF assessments to 0 to 27 basis points effective January 1,
1997, a range comparable to that of BIF members. SAIF members will continue to
make the higher FICO payments described above. Management cannot predict the
level of FDIC insurance assessments on an on-going basis, whether the savings
charter will be eliminated or whether the BIF and SAIF will eventually be
merged.
On December 24, 1996, the Company received approval from the Office of
Thrift Supervision for the repurchase of 10% of its common stock. As of March
31, 1997 the Company had repurchased 29,300 shares at prices ranging from
$13.532 to $15.50 per share.
7
<PAGE>
Comparison of Financial Condition at March 31, 1997 and December 31, 1996
Total assets increased from $261.6 million at December 31, 1996 to $271.6
million at March 31, 1997. The $10.0 million or 3.8% increase was primarily due
to the borrowings from the Federal Home Loan Bank of Chicago.
Cash and cash equivalents decreased from $7,007,000 at December 31, 1996
to $6,470,000 at March 31, 1997, a decrease of $537,000 or 7.7%. This decrease
was the result of the use of such assets for the increased investment in loans.
Premises and equipment increased from $5,778,000 at December 31, 1996 to
$7,485,000 at March 31, 1997, an increase of $1,707,000, or 30.0%, due to the
purchase of a building in January, 1997 to serve as a new full-service office
and administrative facility.
Loans, including loans held for sale, increased from $214,581,000 at
December 31, 1996 to $222,475,000 at March 31,1997, an increase of $7,894,000 or
3.7%. The growth in loans was funded primarily from borrowings from the Federal
Home Loan Bank. The growth was primarily in commercial loans.
Deposits decreased from $202,125,000 at December 31, 1996 to $199,786,000,
a decrease of $2,339,000 or 1.2%. Overall certificates of deposit declined by
$1,570,000. Other liabilities decreased by $499,000 or 23.1% because of lower
accrued payables.
The total equity capital decreased by $583,000 or 1.4%, from $40,349,000
at December 31, 1996 to $39,766,000 at March 31, 1997. The decrease was caused
by the repurchase of the Company's stock for use for incentive plans and as part
of the Company's 10% repurchase program, which was approved by the Office of
Thrift Supervision on December 24, 1996.
8
<PAGE>
Comparison of Operating Results for the Three Months Ended March 31, 1997 and
March 31, 1996
Net income for the three months ended March 31, 1997 increased by $93,000,
or 28.4%, from $328,000 for the three months ended March 31, 1996 to $421,000
for the three months ended March 31, 1997. The increase was due to higher
interest income from the investment of the proceeds from the stock offering in
1996.
Interest Income
Interest on loans increased by $210,000 or 5.1%, from $4,087,000 for the
three months ended March 31, 1996 to $4,297,000 for the three months ended March
31, 1997. The increase was due to a higher average balance of loans due to the
investment of the proceeds from the stock offering and the transfer of funds
from investment securities to loans. The new loans were invested primarily in
one-to-four family mortgage loans. Interest on investments increased from
$208,000 for the three months ended March 31, 1996 to $526,000 for the three
months ended March 31, 1997, an increase of $318,000 or 152.9%. The increase
reflected the higher average balance of securities and interest-earning deposits
during the three months ended March 31, 1997.
Interest Expense
Interest on savings deposits decreased by $203,000 or 7.8%, from
$2,615,000 for the three months ended March 31, 1996 to $2,412,000 for the three
months ended March 31, 1997. The increase was attributable to lower average
balance in savings deposits during the three months ended March 31, 1997. The
interest on borrowings increased by $356,000 as a result of borrowings from the
Federal Home Loan Bank of Chicago in 1997. During the three months ended March
31, 1996 there was no such borrowings.
Noninterest Income
Total noninterest income decreased by $22,000 or 5.3%, from $416,000 for
the three months ended March 31, 1996 to $394,000 for the three months ended
March 31, 1997. The decrease was due to decreases in loan fees and net gains on
loan sales which were partially offset by a decrease in net losses on sales of
available for sale securities. Loan fees decreased $39,000 or 23.4%, from
$167,000 for the three months ended March 31, 1996 to $128,000 for the three
months ended March 31, 1997. This decrease reflected the decrease of loan
originations from $28.8 million for the three months ended March 31, 1996 to
$26.4 million
9
<PAGE>
for the three months ended March 31, 1997. Net gains on loan sales decreased by
$11,000 or 18.6%, from $59,000 for the three months ended March 31, 1996 to
$48,000 for the three months ended March 31, 1997, because of a decrease in loan
sales in the three months ended March 31, 1997. Sales of available for sale
securities resulted in a loss of $33,000 for the three months ended March 31,
1996. There were no sales of available for sale securities during the three
months ended March 31, 1997.
Noninterest Expense
Total noninterest expense increased by $164,000 or 10.8%, from $1,522,000
for the three months ended March 31, 1996 to $1,686,000 for the three months
ended March 31, 1997. Salaries and benefits increased by $179,000 or 21.5%, due
to the effects of implementing the ESOP and other stock based compensation
programs. Net occupancy expenses increased by $29,000 or 15.4%, for the three
months ended March 31, 1997 primarily because of the purchase of a building in
January, 1997 to serve as a new full-service office and administrative facility.
Deposit insurance/OTS expense decreased by $94,000, from $119,000 for the three
months ended March 31, 1996 to $25,000 for the three months ended March 31, 1997
because of lower SAIF assessments mandated by the Funds Act and a credit for
SAIF assessments paid prior to the enactment of the SAIF assessment.
Provision for Loan Losses
The provision for loan losses increased from $38,000 for the three months
ended March 31, 1996 to $75,000 for the three months ended March 31, 1997, an
increase of $37,000 or 97.4%. The increase was made because of the increase in
commercial loans, the continued growth of the loan portfolio and management's
evaluation of the loan portfolio. While management believes that the allowance
for loan losses is sufficient based on information currently available, no
assurances can be made that future events or conditions or regulatory directives
will not result in increased provisions for loan losses or additions to the
Bank's allowance for loan losses which may adversely affect net income.
Liquidity and Capital Resources
The Bank's primary sources of funds are deposits, principal and interest
payments on loans and securities, sales of loans and securities and Federal Home
Loan Bank ("FHLB") advances. While maturing and scheduled amortization of loans
are predictable sources of funds, deposit outflows and mortgage prepayments are
greatly influenced by general interest rates, economic conditions and
competition.
10
<PAGE>
The Bank's liquidity requirement, which may be varied at the direction of the
Office of Thrift Supervision ("OTS") depending on economic conditions and
deposit flows, is based upon a percentage of the Bank's deposits and short-term
borrowings. The Bank is currently required by the OTS to maintain a ratio of
liquid assets of 5.0%. At March 31, 1997 and 1996, the Bank's liquidity ratio
was 5.26% and 6.72%, respectively. Management maintains its liquid assets in
accordance with regulatory requirements.
At March 31, 1997, the Bank exceeded all of its regulatory capital
requirements with a tangible capital level of $28.1 million, or 10.4% of
adjusted assets, which is above the required level of $4.0 million or 1.5%; core
capital of $28.1 million, or 10.4% of adjusted assets, which is above the
required level of $8.1 million or 3.0%; and risk-based capital of $28.6 million
or 18.8% of adjusted assets, which is above the required level of $12.2 million
or 8.0%.
The Company's most liquid assets are cash and interest-bearing demand
accounts. The level of these accounts is dependent on the operating, financing,
lending and investing activities during any given period. At March 31, 1997,
cash and interest-bearing deposits totaled $6.5 million or 2.4% of the Company's
total assets.
The Company has other sources of liquidity if a need for additional funds
arises, including FHLB advances. At March 31, 1997, the Bank had outstanding
advances with the FHLB of $29.2 million with a current additional borrowing
capacity of $4.0 million based on the FHLB borrowing limit of twenty times the
member bank's investment in FHLB stock. This limit may be raised by the purchase
of additional FHLB stock. Depending upon market conditions and the pricing of
deposit products and FHLB borrowings, the Bank may utilize FHLB advances to fund
loan originations.
At March 31, 1997 the Bank had commitments to originate loans and unused
lines of credit totaling $16.8 million. Certificate accounts, which are
scheduled to mature in one year or less from March 31, totaled $96.2 million.
The Bank anticipates that it will have sufficient funds to meet its current loan
commitments and maturing deposits.
11
<PAGE>
PART II. -- OTHER INFORMATION
Item 1. Legal Proceedings
The Company is not involved in any legal proceedings of a material nature
at this time other than those occurring in the ordinary course of business which
in the aggregate involves amounts which are believed by management to be
immaterial to the financial condition of the Company.
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
12
<PAGE>
Item 6. Exhibits and Reports on Form 8-K
a. Exhibits
3.1 Certificate of Incorporation of Citizens First Financial
Corp.*
3.2 By-laws of Citizens First Financial Corp.*
11.0 Computation of Earnings Per Share (filed herewith)
27.0 Financial Data Schedule
b. Report on Form 8-K
None
* Incorporated by reference to this Registration Statement on Form SB-2, as
amended, filed on January 24, 1996, Registration No. 333-556.
13
<PAGE>
SIGNATURES
In accordance with the requirements of the Securities Exchange Act of
1934, the registrant caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
Citizens First Financial Corp.
(Registrant)
Date: May 14, 1997 /s/ C. William Landefeld
--------------------- -------------------------------------
C. William Landefeld
President
Date: May 14, 1997 /s/ Dallas G. Smiley
--------------------- -------------------------------------
Dallas G. Smiley
Chief Financial Officer
14
Exhibit 11.0
Statement Regarding Computation of Earnings Per Share for the Three
Months Ended March 31, 1997
(Unaudited)
Assuming no dilution:
Net income (in thousands) $ 420
==========
Weighted average number of shares:
Average shares outstanding: 2,500,978
==========
Income per share assuming no dilution: $ 0.16
==========
Assuming full dilution:
Net income (in thousands) $ 420
==========
Weighted average number of shares:
Average shares outstanding: 2,835,185
==========
Income per share assuming full dilution: $ 0.14
==========
Note:
Earnings per share are computed based upon the weighted average common and
common equivalent shares outstanding for periods subsequent to the Company's
initial stock offering on May 1, 1996. Accordingly, earnings per share for the
quarter ended March 31, 1996 are not meaningful.
<TABLE> <S> <C>
<ARTICLE> 9
<LEGEND>
This schedule contains summary information extracted from the Form 10-QSB and is
qualified in its entirety by reference to such financial statements.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<PERIOD-START> JAN-01-1996
<PERIOD-END> MAR-31-1997
<FISCAL-YEAR-END> DEC-31-1997
<CASH> 3,492
<INT-BEARING-DEPOSITS> 2,978
<FED-FUNDS-SOLD> 0
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 29,624
<INVESTMENTS-CARRYING> 500
<INVESTMENTS-MARKET> 500
<LOANS> 222,475
<ALLOWANCE> 527
<TOTAL-ASSETS> 271,614
<DEPOSITS> 199,786
<SHORT-TERM> 2,000
<LIABILITIES-OTHER> 2,820
<LONG-TERM> 27,242
0
0
<COMMON> 28
<OTHER-SE> 39,738
<TOTAL-LIABILITIES-AND-EQUITY> 271,614
<INTEREST-LOAN> 4,296
<INTEREST-INVEST> 527
<INTEREST-OTHER> 0
<INTEREST-TOTAL> 4,823
<INTEREST-DEPOSIT> 2,412
<INTEREST-EXPENSE> 2,768
<INTEREST-INCOME-NET> 2,055
<LOAN-LOSSES> 75
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 1,686
<INCOME-PRETAX> 687
<INCOME-PRE-EXTRAORDINARY> 687
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 420
<EPS-PRIMARY> $0.16
<EPS-DILUTED> $0.14
<YIELD-ACTUAL> .032
<LOANS-NON> 300
<LOANS-PAST> 312
<LOANS-TROUBLED> 351
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 512
<CHARGE-OFFS> 0
<RECOVERIES> 0
<ALLOWANCE-CLOSE> 527
<ALLOWANCE-DOMESTIC> 527
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 505
</TABLE>
