<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
[ X ] Quarterly Report Pursuant to Section 13 or 15 (d) of
the Securities Exchange Act of 1934 for the period
ended June 30, 1997
[ ] Transition report under Section 13 or 15(d) of the
Exchange Act for the transition period from _____
to _____
Commission file number: 33-80855
GATEWAY BANCSHARES, INC.
(Exact name of small business issuer as specified in its charter)
Georgia 58-2202210
(State of Incorporation) (I.R.S. Employer Identification No.)
5102 Alabama Highway, P.O. Box 129
Ringgold, Georgia 30736
(Address of principal executive offices)
(706) 965-5500
(Issuer's telephone number, including area code)
Check whether the issuer (1) has filed all reports required to be filed by
Section 13 or 15(d) of the Securities Exchange Act of 1934 during the past 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 [ ]
State the number of shares outstanding of each of the issuer's classes of
common equity, as of the latest practicable date:
Class
-----
Common Stock, $5.00 par value 679,048
Transitional Small Business Disclosure Format: Yes [ ] No [ X ]
<PAGE> 2
GATEWAY BANCSHARES, INC.
June 30, 1997 Form 10-QSB
TABLE OF CONTENTS
<TABLE>
<CAPTION>
Page No.
--------
<S> <C>
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements (Unaudited)
Consolidated Balance Sheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Consolidated Statement of Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Consolidated Statement of Cash Flows . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Notes to Consolidated Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Item 2. Management's Discussion and Analysis or Plan of Operation . . . . . . . . . . . . . . . . . . . . . . 9
PART II. OTHER INFORMATION
Item 4. Submission of Matters to aVote of Security Holders . . . . . . . . . . . . . . . . . . . . . . . . . 13
Item 6. Exhibits and Reports on Form 8-K . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
</TABLE>
* * * * *
<PAGE> 3
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
GATEWAY BANCSHARES, INC.
CONSOLIDATED BALANCE SHEET
<TABLE>
<CAPTION>
JUNE 30, 1997 December 31,
UNAUDITED 1996
------------- ------------
<S> <C> <C>
ASSETS
Cash $ 121,817 $ -0-
Due from banks 661,329 30,615
Federal funds sold 2,025,000 850,000
Securities available for sale 4,841,381 1,491,574
Securities held to maturity 1,444,248 3,682,579
Loans 4,509,394 -0-
Allowance for loan losses (43,500) -0-
----------- -----------
Net loans 4,465,894 -0-
Premises and equipment, net 1,671,929 548,390
Accrued interest 128,926 42,844
Other assets 174,954 58,208
----------- -----------
TOTAL ASSETS $15,535,478 $ 6,704,210
=========== ===========
LIABILITIES AND SHAREHOLDER'S EQUITY
LIABILITIES:
Deposits:
Noninterest-bearing $ 1,745,985 $ -0-
Interest-bearing 7,305,423 -0-
----------- -----------
TOTAL DEPOSITS 9,051,408 -0-
Accrued interest 26,378 -0-
Other liabilities 27,825 88,870
----------- -----------
TOTAL LIABILITIES 9,105,611 88,870
----------- -----------
SHAREHOLDER'S EQUITY:
Common stock ($5 par value; 10,000,000 shares
authorized, 679,048 shares issued and outstanding) 3,395,240 3,395,240
Capital surplus 3,357,637 3,357,637
Accumulated deficit (324,374) (133,590)
Unrealized losses on investment securities
available for sale, net of deferred tax or tax benefit
1,364 (3,947)
----------- -----------
TOTAL SHAREHOLDER'S EQUITY 6,429,867 6,615,340
----------- -----------
TOTAL LIABILITIES AND SHAREHOLDER'S EQUITY $15,535,478 $ 6,704,210
=========== ===========
</TABLE>
See notes to financial statements.
3
<PAGE> 4
GATEWAY BANCSHARES, INC.
CONSOLIDATED STATEMENT OF INCOME
(unaudited)
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
June 30 June 30
--------------------- ---------------------------
1997 1996 1997 1996
---- ---- ---- ----
<S> <C> <C> <C> <C>
REVENUE FROM EARNING ASSETS:
Interest on investment securities:
Loans $ 68,375 $ -0- $ 68,375 $ -0-
Taxable securities 68,443 3,196 141,461 3,196
Interest on federal funds sold 27,016 3,625 33,891 3,625
Interest on deposits in other banks -0- 35,787 -0- 35,787
--------- --------- ---------- ---------
TOTAL REVENUE FROM EARNING ASSETS 163,834 42,608 243,727 42,608
INTEREST EXPENSE:
Interest on deposits 41,963 -0- 41,963 -0-
Interest on notes payable -0- 3,201 -0- 4,572
--------- --------- ---------- ---------
TOTAL INTEREST EXPENSE 41,963 3,201 41,963 4,572
NET INTEREST INCOME: 121,871 39,407 201,764 38,036
Provision for loan losses 43,500 -0- 43,500 -0-
--------- --------- ---------- ---------
NET INTEREST INCOME:
After Provision For Loan Losses 78,371 39,407 158,264 38,036
NON INTEREST INCOME:
Service charges 3,504 -0- 3,504 -0-
Other income 4,064 -0- 4,064 -0-
--------- --------- ---------- ---------
TOTAL NONINTEREST INCOME 7,568 -0- 7,568 -0-
NONINTEREST EXPENSES:
Salaries and employee benefits 152,350 57,525 249,352 99,109
Occupancy expense 17,183 601 26,432 5,807
Furniture and equipment expense 15,978 -0- 18,926 -0-
Other operating expenses 130,281 30,669 162,406 34,886
--------- --------- ---------- ---------
TOTAL NONINTEREST EXPENSES 315,792 88,795 457,116 139,802
Loss before income taxes (229,853) (49,388) (291,284) (101,766)
Income tax (provision) benefit 100,500 -0- 100,500 -0-
--------- --------- ---------- ---------
NET INCOME (LOSS) $(129,353) $ (49,388) $ (190,784) $(101,766)
========= ========= ========== =========
EARNINGS (LOSS) PER COMMON SHARE - PRIMARY
AND FULLY DILUTED
Net income (loss) per common share $ (.19) $ (.07) $ (.28) $ (.15)
Weighted average common shares outstanding 679,048 679,048 679,048 679,048
</TABLE>
See notes to financial statements.
4
<PAGE> 5
GATEWAY BANCSHARES, INC.
CONSOLIDATED STATEMENT OF CASH FLOWS
(unaudited)
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
June 30 June 30
------------------------- -------------------------
1997 1996 1997 1996
---- ---- ---- ----
<S> <C> <C> <C> <C>
OPERATING ACTIVITIES:
Net income (loss) $ (129,353) $ (49,388) $ (190,784) $ (101,766)
Adjustments to reconcile net loss to net cash
provided by operating activities:
Provision for loan losses 43,500 -0- 43,500 -0-
Provision for depreciation and amortization 25,524 -0- 28,589 -0-
Amortization of investment security
premiums and accretion of discounts 2,106 -0- (19,659) -0-
Deferred tax provision (100,500) -0- (100,500) -0-
Increase in accrued interest receivable (86,082) -0- (86,082) -0-
Increase in accrued interest payable 26,378 -0- 26,378 -0-
Other (271,586) 1,292 (80,314) (2,891)
----------- ------------ ------------ ------------
NET CASH USED IN OPERATING ACTIVITIES (490,013) (48,096) (378,872) (104,657)
----------- ------------ ------------ ------------
INVESTING ACTIVITIES:
Net increase in loans (4,509,394) -0- (4,509,394) -0-
Proceeds from maturities of securities 331,058 -0- 3, 031,058 -0-
Purchase of available for sale securities (1,086,307) (4,135,492) (3,373,281) (4,135,492)
Purchase of held to maturity securities (743,574) -0- (743,574) -0-
Capital expenditures (484,512) (57,852) (1,149,814) (77,077)
----------- ------------ ------------ ------------
NET CASH USED IN INVESTING ACTIVITIES (6,492,729) (4,193,344) (6,745,005) (4,212,569)
FINANCING ACTIVITIES:
Net increase in demand deposits, NOW accounts,
and savings accounts 5,517,921 -0- 5,517,921 -0-
Net increase in certificates of deposit 3,533,487 -0- 3,533,487 -0-
Borrowing under line of credit -0- -0- -0- 93,000
Issuance of common stock -0- 6,357,940 -0- 6,357,940
Stock issue costs -0- (6,740) -0- (20,677)
Payments to organizers -0- (40,500) -0- (40,500)
Payments on line of credit -0- (130,500) -0- (130,500)
Retirement of common stock -0- -0- -0- -0-
----------- ------------ ------------ ------------
NET CASH PROVIDED BY FINANCING ACTIVITIES 9,051,408 6,180,200 9,051,408 6,259,263
----------- ------------ ------------ ------------
Net increase in cash and cash equivalents 2,068,666 1,938,760 1,927,531 1,942,037
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 739,480 3,473 880,615 196
----------- ------------ ------------ ------------
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 2,808,146 $ 1,942,233 $ 2,808,146 $ 1,942,233
=========== ============ ============ ============
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Cash paid during the period for:
Interest $ 15,585 $ 3,201 $ 15,585 $ 4,572
Income taxes -0- -0- -0- -0-
</TABLE>
See notes to financial statements.
5
<PAGE> 6
GATEWAY BANCSHARES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)
June 30, 1997
NOTE 1 - BASIS OF PRESENTATION
The consolidated financial statements include the accounts of Gateway
Bancshares, Inc., and its wholly-owned subsidiary, Gateway Bank & Trust. All
significant intercompany accounts and transactions have been eliminated in
consolidation. Certain items in prior period's financial statements have been
reclassified to conform with the current financial statement presentation.
The accompanying unaudited consolidated financial statements have been prepared
in accordance with generally accepted accounting principles for interim
financial information and with the instructions to Form 10-QSB and Regulation
S-B. Accordingly, they do not include all of 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 have
been included. Operating results for the six-month period ended June 30, 1997
and the period from July 11, 1995 (inception) to June 30, 1997 are not
necessarily indicative of the results that may be expected for the year ending
December 31, 1997. For further information, refer to the financial statements
and footnotes thereto included in the Company's annual financial report filed
under cover Form 10-KSB for the year ended December 31, 1996.
NOTE 2 - ORGANIZATION AND SUMMARY OF SIGNIFICANT
ACCOUNTING POLICIES:
Organization
Gateway Bancshares, Inc., (the "Company") was formed to become a bank holding
company to acquire all the stock of a new bank in Ringgold, Georgia, called
Gateway Bank & Trust (the "Bank").
The Company is a one-bank holding company which provides a full range of
banking services to individual and business customers in the Catoosa County,
Georgia and surrounding areas through its wholly owned subsidiary, the Bank.
The Bank received preliminary charter approval on December 11, 1995 and a
permit to begin business on April 21, 1997. The Bank was granted a charter by
the Georgia Department of Banking and Finance, and began full operation on
April 21, 1997. The Company is funding operations from deposits and from
capital raised through the issue of its common stock in 1996. Further
discussion of the Company's financial condition and results of operation is
included in the Company's consolidated financial statements presented in the
Company's annual report on Form 10-KSB for the year ended December 31, 1996.
6
<PAGE> 7
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited, continued)
Premises and Equipment
Premises and equipment are stated at cost less depreciation of $31,452. The
provision for depreciation charged to expense for the six months ended June 30,
1997 was $26,275.
Pre-Opening, Organization and Stock Offering Costs
Organization costs are primarily consulting, legal and regulatory fees related
to the incorporation and initial organization of the Company and the Bank.
Pre-opening costs are initial expenses incurred to prepare the Bank to commence
business as a financial institution. Organization costs have been capitalized
and are being amortized on a straight-line basis over five years. Stock
offering costs were charged to additional paid-in capital when the stock
offering was completed during the second quarter of 1996. At March 31, 1997,
capital surplus included prior year earnings as required by bank regulatory
authorities.
Income Taxes
The Company and the Bank are subject to federal and state income taxes. No
taxes have been accrued or paid because of operating losses incurred during the
pre-opening stage.
Net Loss Per Common Share
Net loss per common share is based on the number of shares outstanding for the
periods presented.
NOTE 3 - INVESTMENT SECURITIES
The Company applied the accounting and reporting requirements of Statement of
Financial Accounting Standards No. 115, Accounting for Certain Investments in
Debt and Equity Securities ("SFAS 115"). This pronouncement requires that all
investments in debt securities be classified as either "held-to-maturity"
securities, which are reported at amortized cost; trading securities, which are
reported at fair value, with unrealized gains and losses included in earnings;
or "available-for-sale" securities, which are reported at fair value, with
unrealized gains and losses excluded from earnings and reported in a separate
component of Shareholder's equity (net of deferred tax effect).
At June 30, 1997, the Company had net unrealized gains of $ 2,073 in
available-for-sale securities which are reflected in the presented assets and
resulted in an increase in Shareholder's equity of $1,364, net of deferred tax
liability. There were no trading securities. The net increase in
shareholder's equity as a result of the SFAS 115 adjustment from December 31,
1996 to June 30, 1997 was $5,311.
NOTE 4 - RECENTLY ISSUED ACCOUNTING STANDARDS
In February 1997, the Financial Accounting Standards Board (FASB) issued
Statements on Financial Accounting Standards No. 128, "Earnings Per
Share" and No. 129, "Disclosure of
7
<PAGE> 8
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited, concluded)
Information about Capital Structure". These standards are effective for
periods ending after December 15, 1997, (and interim periods for SFAS No. 128)
and simplifies reporting of earnings per share and requires the disclosure of
certain information about the entity's capital structure. Management does not
expect these new standards to have a material impact on the consolidated
financial statements.
8
<PAGE> 9
Part I.- Financial Information
Item 2. Management's Discussion and Analysis or Plan of Operation
This discussion is intended to assist in an understanding of the Company's
financial condition and results of operations. This analysis should be read in
conjunction with the financial statements and related notes appearing in Item 1
of the March 31, 1997 Form 10-QSB and Management's Discussion and Analysis of
Financial Condition and Results of Operations for the Year ended December 31,
1996 appearing in the Company's Form 10-KSB.
EARNINGS SUMMARY
The Company's loss for the quarter ended June 30, 1997 of $129,353 resulted
from the effect of start up costs such as salaries and overhead costs.
Increases in interest income from expected future growth of the Company's loan
base are expected to minimize future losses and move the Company toward
profitability. The Company's loss per share for second quarter 1997 was $0.19.
RESULTS OF OPERATIONS
INTEREST INCOME
Interest income on loans and investment securities is the principal source of
the Company's earnings stream. Fluctuations in interest rates as well as
volume and mix changes in earning assets materially affect interest income.
Interest income was $163,834 for the second quarter 1997, which reflects
earnings on funds invested from deposits and proceeds of the Company's sale of
stock.
INTEREST EXPENSE
Interest expense on deposits for the second quarter 1997 was $41,963. In the
second quarter 1996, the Company incurred interest expense on temporary
organizational loans to fund pre-opening expenses until such time as the
offering of its common stock was complete. These loans were paid in June, 1996,
from proceeds of the stock offering.
NON-INTEREST EXPENSE
Non-interest expense totaled $315,792 for second quarter 1997, and $88,795 for
1996. The increase reflects the hiring of additional staff, and other expenses
necessary for the operation of the Company. The Company currently has a staff
of fifteen full time people and may hire an additional person within the next
six months.
INCOME TAXES
The Company's net operating losses incurred to date totaling $324,374 are
expected to be utilized in subsequent years to offset future taxable income.
9
<PAGE> 10
FINANCIAL CONDITION
EARNING ASSETS
The Company's earning assets include loans, investment securities and federal
funds sold.
The mix of earning assets reflects management's attempt to maximize interest
income while maintaining acceptable levels of risk.
NON-EARNING ASSETS
Non-earning assets include premises and equipment of $1,671,929 at June 30,
1997, an increase of $1,123,539 from December 31, 1996. The Company's premises
were completed prior to opening on April 21, 1997. Depreciation has been
provided for those assets that have been placed in service.
The Company began leasing the site for the Bank beginning in September, 1996,
at the rate of $1,707 per month. The lease term is for a maximum of fifty
years, including extensions after the initial twenty-year period, and subject
to certain conditions after the initial forty-year period.
Accrued interest was $128,926 at June 30, 1997, an increase of $86,082 from
December 31, 1996. The increase is due to related increases in investment
securities since year end and the increase in loans since opening April 21,
1997.
Other assets consist of the organization costs of the Company and the Bank and
the deferred tax asset. Organization costs are primarily consulting, legal and
regulatory fees related to the incorporation and initial organization of the
Company and the Bank. Organization costs have been capitalized and are
amortized on a straight line basis over a period of five years. The deferred
tax asset consists primarily of tax benefits related to the net operating
losses and will be realized when the Company becomes profitable.
LOANS
Since opening on April 21, 1997, the Company has made loans amounting to
$4,465,894 net of its reserve for loan losses, or 28.7 percent of total assets.
The Company will continue to search for loan opportunities in its market area
while assuming acceptable levels of risk.
INVESTMENT SECURITIES AND FEDERAL FUNDS SOLD
The composition of the Company's investment securities portfolio reflects the
Company's investment strategy of maximizing portfolio yields subject to risk
and liquidity considerations. The primary objectives of the Company's
investment strategy are to maintain an appropriate level of liquidity and
provide a tool to assist in controlling the Company's interest rate position
while at the same time producing adequate levels of interest income. For
securities classified as available for sale, it is the intention to hold such
securities for the foreseeable future except for providing funds for increases
in loan demand. Management of the maturity of the portfolio is necessary to
provide liquidity and to control interest rate risk.
10
<PAGE> 11
Investment securities and federal funds sold increased $1,175,000 or 138.2
percent from December 31, 1996 to June 30, 1997. The increase is due to funds
being held for future loan growth during the period. The investment securities
portfolio is adjusted to make various term investments, to provide a source of
liquidity and to serve as collateral to secure certain government deposits.
Investment securities at June 30, 1997 were $6,285,629 compared with $5,174,153
at December 31, 1996, reflecting a 21.4 percent increase of $1,111,476. The
increase in investment securities has resulted from the Company's growth in
deposits since opening on April 21, 1997.
DEPOSITS
Since opening on April 21, 1997, the Company's deposits have grown to
$9,051,408 as of June 30, 1997. Of this amount, $1,745,985 relates to
non-interest bearing accounts. Time deposits over $100,000 amounted to
$1,658,811 at June 30, 1997.
LIABILITIES
Liabilities consisted primarily of building construction contract amounts
payable at December 31, 1996 and accrued interest payable and miscellaneous
accounts payable at June 30, 1997.
LIQUIDITY AND CAPITAL RESOURCES
CAPITAL RESOURCES
A strong capital position is vital to the profitability of the Company because
it promotes depositor and investor confidence and provides a solid foundation
for future growth of the organization. The Company has provided for its
capital requirements with proceeds from its initial stock offering. During
1996, the Company issued 679,048 shares of its common stock at $10 per share.
The Company allocated $3,395,240 to common stock, and $3,357,637, (after the
payment of $37,603 in stock issue costs), to additional paid in capital. In
1996, the Company capitalized the Bank by the purchase of all the Bank's
outstanding common stock for $6,000,000.
Bank regulatory authorities are placing increased emphasis on the maintenance
of adequate capital. In 1990, risk-based capital requirements became effective.
The guidelines take into consideration risk factors, as defined by regulators,
associated with various categories of assets, both on and off the balance
sheet. Under the guidelines, capital strength is measured in two tiers which
are used in conjunction with risk-adjusted assets to determine the risk-based
capital ratios. The Bank's capital exceeds the required ratios at June 30,
1997. In addition to the capital standards imposed by federal banking
regulators, the Georgia Department of Banking and Finance has imposed an 8%
capital ratio for the first three years of operation as a condition to the
approval of the Bank's charter. This standard, which exceeds the requirements
discussed above, is calculated as the ratio of total equity to total assets,
each as adjusted for unrealized gains and losses on securities and the
allowance for loan losses. After the initial three years of operation, the Bank
will be subject to a 6% ratio.
11
<PAGE> 12
Other important indicators of capital adequacy in the banking industry are the
leverage ratio and the tangible leverage ratio. The leverage ratio is defined
as the ratio that the Bank's shareholders equity minus goodwill bears to total
assets minus goodwill. The tangible leverage ratio is defined as the Bank's
shareholders equity minus all intangibles, divided by total assets minus all
intangibles. The Bank's leverage ratios as of June 30, 1997 exceeded the
regulatory minimum requirements which are generally 3% plus an additional
cushion of at least 100-200 basis points depending on risk profiles and other
factors.
12
<PAGE> 13
PART II - OTHER INFORMATION
ITEM 4 - SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
An annual meeting of the shareholders of the Company was held on June 19, 1997
for the purpose of electing the Board of Directors of the Company. Votes of
the shareholders on these matters were solicited by means of a proxy statement
describing the matters to be voted upon, which was sent to the Company's
shareholders on June 2, 1997. In addition, the director nominees listed in the
following table, each of whom served as a director of the Company prior to the
annual meeting, were elected to constitute the entire Board of Directors of the
Company and to continue to serve until the next annual shareholders' meeting.
Directors Elected at Annual Meeting of Shareholders
<TABLE>
<CAPTION>
Name Votes For Votes Withheld Total Shares Represented
---- --------- -------------- ------------------------
<S> <C> <C> <C>
Jack J. Babb 460,095 100 460,195
William H. Clark 459,995 200 460,195
Patricia Y. Cochran 459,595 600 460,195
Jeanette W. Dupree 460,095 100 460,195
James A. Gray, Sr. 459,095 1,100 460,195
Harle B. Green 460,095 100 460,195
Walter L. Jackson 460,095 100 460,195
Ernest Kresch 459,595 600 460,195
Robert G. Peck 460,095 100 460,195
</TABLE>
ITEM 6 - EXHIBITS AND REPORT ON FORM 8-K
(a) Exhibits:
<TABLE>
<CAPTION>
Exhibit Number Description of Exhibit Page number
-------------- ---------------------- -----------
<S> <C> <C>
11 Computation of Earnings 15
Per Share
27 Financial Data Schedule
(for the SEC use only )
</TABLE>
(b) Reports on Form 8-K
The Company did not file any reports on Form 8-K during the quarter ended June
30, 1997.
13
<PAGE> 14
SIGNATURES
In accordance with the requirements of the Exchange Act, the registrant caused
this report to be signed on its behalf by the undersigned, thereunto duly
authorized.
Dated: August 5, 1997
GATEWAY BANCSHARES, INC.
/s/ Robert G. Peck
------------------------------------
Robert G. Peck,
President and CEO
(Duly authorized officer)
/s/ Harle B. Green
------------------------------------
Harle B. Green,
Chairman and Chief Financial Officer
(Principal Financial Officer)
14
<PAGE> 1
Exhibit 11 - Computation of Earnings per Share
The following tabulation presents the calculation of primary and fully diluted
earnings per common share for the three month periods ended June 30, 1997 and
1996.
<TABLE>
<CAPTION>
THREE MONTHS Three Months
ENDED Ended
JUNE 30, 1997 June 30, 1996
------------- -------------
<S> <C> <C>
Reported net income (loss) $(129,353) $(49,388)
========= ========
Earnings (loss) on common shares $(129,353) $(49,388)
========= ========
Weighted average common shares outstanding 679,048 679,048
========= ========
Loss per common share - primary and fully diluted
Loss from continuing operations $ (.19) $ (.07)
========= ========
Net income (loss) $ (.19) $ (.07)
========= ========
</TABLE>
15
<TABLE> <S> <C>
<ARTICLE> 9
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FINANCIAL STATEMENTS OF GATEWAY BANCSHARES, INC. FOR THE SIX MONTHS ENDED JUNE
30, 1997, AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL
STATEMENTS.
</LEGEND>
<MULTIPLIER> 1
<CURRENCY> U S DOLLARS
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> JUN-30-1997
<EXCHANGE-RATE> 1
<CASH> 783,146
<INT-BEARING-DEPOSITS> 0
<FED-FUNDS-SOLD> 2,025,000
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 4,841,381
<INVESTMENTS-CARRYING> 1,444,248
<INVESTMENTS-MARKET> 1,443,344
<LOANS> 4,509,394
<ALLOWANCE> 43,500
<TOTAL-ASSETS> 15,535,478
<DEPOSITS> 9,051,408
<SHORT-TERM> 0
<LIABILITIES-OTHER> 54,203
<LONG-TERM> 0
0
0
<COMMON> 3,395,240
<OTHER-SE> 3,034,627
<TOTAL-LIABILITIES-AND-EQUITY> 15,535,478
<INTEREST-LOAN> 68,375
<INTEREST-INVEST> 141,461
<INTEREST-OTHER> 33,891
<INTEREST-TOTAL> 243,727
<INTEREST-DEPOSIT> 41,963
<INTEREST-EXPENSE> 41,963
<INTEREST-INCOME-NET> 201,764
<LOAN-LOSSES> 43,500
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 457,116
<INCOME-PRETAX> (291,284)
<INCOME-PRE-EXTRAORDINARY> (190,784)
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (190,784)
<EPS-PRIMARY> (.28)
<EPS-DILUTED> (.28)
<YIELD-ACTUAL> 6.56
<LOANS-NON> 0
<LOANS-PAST> 0
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 0
<CHARGE-OFFS> 0
<RECOVERIES> 0
<ALLOWANCE-CLOSE> 43,500
<ALLOWANCE-DOMESTIC> 43,500
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
