<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-QSB
(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, 2000
--------------
[ ] Transition report pursuant to Section 13 or 15(d) of the Securities Exchange
Act of 1934
Commission file number: 0-27702
Bank of South Carolina Corporation
(Exact name of small business issuer as specified in its charter)
South Carolina 57-1021355
(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification Number)
256 Meeting Street, Charleston, SC 29401
(Address of principal executive offices)
(843) 724-1500
(Issuer's Telephone Number)
Check whether the issuer (1) filed all reports required to be filed by Section
13 or 15(d) of the Exchange Act 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 [ ]
As of April 21, 2000, there were 2,580,597 Common Shares outstanding.
Transitional Small Business Disclosure Format (Check one):
Yes [ ] No [X]
<PAGE> 2
Table of Contents
BANK OF SOUTH CAROLINA CORPORATION
Report on Form 10-QSB
for quarter ended
March 31, 2000
Page
PART I - FINANCIAL INFORMATION ----
Item 1. Financial Statements (Unaudited)
Consolidated Balance Sheets - March 31, 2000
and December 31, 1999..................................................3
Consolidated Statements of Operations - Three months
ended March 31, 2000 and 1999..........................................4
Consolidated Statements of Shareholders'
Equity and Comprehensive Income - Three months ended
March 31, 2000 and 1999................................................5
Consolidated Statements of Cash Flows - Three months
ended March 31, 2000 and 1999 .........................................6
Notes to Consolidated Financial Statements...............................7
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations........................8
Liquidity...........................................................10
Capital Resources...................................................10
Accounting and Reporting Changes....................................11
Effect of Inflation and Changing Prices.............................11
PART II - OTHER INFORMATION
Item 1. Legal Proceedings...................................................12
Item 2. Changes in Securities...............................................12
Item 3. Default 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....................................12
Signatures...................................................................13
2
<PAGE> 3
PART I - ITEM 1 - FINANCIAL STATEMENTS
BANK OF SOUTH CAROLINA CORPORATION
CONSOLIDATED BALANCE SHEETS
(Unaudited)
<TABLE>
<CAPTION>
Assets: March 31, 2000 December 31, 1999
-------------- -----------------
<S> <C> <C>
Cash and due from banks $ 7,524,208 $ 6,955,256
Interest bearing deposits in other banks 6,988 6,919
Federal funds sold 7,050,000 16,255,000
Investment securities available for sale (amortized
cost of $37,135,622 and $36,120,785 in 2000
and 1999, respectively) 36,884,859 35,873,009
Investment securities held to maturity (fair value of
$399,813 and $598,968 in 2000 and 1999,
respectively) 400,052 600,208
Loans 97,297,504 90,748,717
Allowance for loan losses (1,284,757) (1,250,138)
------------- -------------
Net loans 96,012,747 89,498,579
Premises and equipment, net 3,741,312 3,818,406
Other assets 1,700,178 1,646,025
------------- -------------
Total assets $ 153,320,344 $ 154,653,402
============= =============
Liabilities and shareholders' equity:
Deposits:
Non-interest bearing demand $ 34,540,135 $ 35,959,630
Interest bearing demand 26,147,716 28,602,488
Money market accounts 22,581,253 22,117,510
Certificates of deposit $100,000 and over 18,099,119 17,418,882
Other time deposits 16,252,090 15,767,175
Other savings deposits 5,323,200 5,414,765
------------- -------------
Total deposits 122,943,513 125,280,450
Short-term borrowings 12,173,118 11,439,333
Interest payable and other liabilities 1,149,583 1,068,315
------------- -------------
Total liabilities 136,266,214 137,788,098
------------- -------------
Common Stock - No par value;
6,000,000 shares authorized; issued and outstanding
2,580,597 and 2,586,828 shares at March 31, 2000
and December 31, 1999, respectively -- --
Additional paid in capital 16,456,624 16,456,624
Retained earnings 1,658,524 1,380,578
Accumulated other comprehensive loss, net of tax (157,981) (156,099)
Treasury stock - 102,000 and 95,769 shares at
March 31, 2000 and December 31, 1999,
respectively (903,037) (815,799)
------------- -------------
Total shareholders' equity 17,054,130 16,865,304
------------- -------------
Total liabilities and shareholders' equity $ 153,320,344 $ 154,653,402
============= =============
</TABLE>
See accompanying notes to consolidated financial statements.
3
<PAGE> 4
BANK OF SOUTH CAROLINA CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
<TABLE>
<CAPTION>
Three months ended
March 31, 2000 March 31, 1999
-------------- --------------
<S> <C> <C>
Interest and fee income
Interest and fees on loans $2,425,456 $2,067,951
Interest and dividends on investment securities 550,433 459,522
Other interest income 56,043 117,619
---------- ----------
Total interest and fee income 3,031,932 2,645,092
---------- ----------
Interest expense
Interest on deposits 807,004 803,392
Interest on short-term borrowings 173,754 40,511
---------- ----------
Total interest expense 980,758 843,903
---------- ----------
Net interest income 2,051,174 1,801,189
Provision for loan losses 40,000 5,000
---------- ----------
Net interest income after provision for loan losses 2,011,174 1,796,189
---------- ----------
Other income
Service charges, fees and commissions 265,111 268,231
Other non-interest income 4,956 3,995
---------- ----------
Total other income 270,067 272,226
---------- ----------
Other expense
Salaries and employee benefits 819,029 727,680
Net occupancy expense 276,564 272,467
Other operating expenses 403,448 401,320
---------- ----------
Total other expense 1,499,041 1,401,467
---------- ----------
Income before income tax expense 782,200 666,948
Income tax expense 272,000 240,000
---------- ----------
Net income $ 510,200 $ 426,948
========== ==========
Basic earnings per share $ .20 $ .16
========== ==========
Diluted earnings per share $ .20 $ .16
========== ==========
Dividends per common share $ .09 $ .07
========== ==========
</TABLE>
See accompanying notes to consolidated financial statements.
4
<PAGE> 5
BANK OF SOUTH CAROLINA CORPORATION
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
AND COMPREHENSIVE INCOME (UNAUDITED)
FOR THREE MONTHS ENDED MARCH 31, 2000 AND 1999
<TABLE>
<CAPTION>
Accumulated Other
Common Additional Retained Treasury Comprehensive
Stock Paid In Capital Earnings Stock Income(Loss) Total
------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
December 31, 1998 $ -- $ 16,456,624 $ 607,959 $ (550,686) $ 163,636 $ 16,677,533
Comprehensive income:
Net income -- -- 426,948 -- -- 426,948
Net unrealized losses on securities
(net of tax effect of $62,106) -- -- -- -- (105,749) (105,749)
------------
Comprehensive income -- -- -- -- -- 321,199
------------
Cash dividends -- -- (182,392) -- -- (182,392)
----------------- ------------ ------------ ------------ ------------ ------------
March 31, 1999 $ -- $ 16,456,624 $ 852,515 $ (550,686) $ 57,887 $ 16,816,340
================= ============ ============ ============ ============ ============
December 31, 1999 $ -- $ 16,456,624 $ 1,380,578 $ (815,799) $ (156,099) $ 16,865,304
Comprehensive income:
Net income -- -- 510,200 -- -- 510,200
Net unrealized losses on securities
(net of tax effect of $1,105) -- -- -- -- (1,882) (1,882)
------------
Comprehensive income -- -- -- -- -- 508,318
------------
Cash dividends -- -- (232,254) -- -- (232,254)
Purchase of treasury stock -- -- -- (87,238) -- (87,238)
----------------- ------------ ------------ ------------ ------------ ------------
March 31, 1999 $ -- $ 16,456,624 $ 1,658,524 $ (903,037) $ (157,981) $ 17,054,130
================= ============ ============ ============ ============ ============
</TABLE>
See accompanying notes to consolidated financial statements.
5
<PAGE> 6
BANK OF SOUTH CAROLINA CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
<TABLE>
<CAPTION>
Three months ended
March 31, 2000 March 31, 1999
-------------- --------------
<S> <C> <C>
Cash flows from operating activities:
Net income $ 510,200 $ 426,948
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation 92,504 99,454
Net amortization of premiums on investments 11,881 30,870
Decrease (increase) in other assets (53,048) 125,800
Provision for loan losses 40,000 5,000
Increase in other liabilities 340,511 353,568
------------ ------------
Net cash provided by operating activities 942,048 1,041,640
------------ ------------
Cash flows from investing activities:
Purchase of investment securities available for sale (9,026,562) (2,200,000)
Maturities of investment securities available for sale 8,000,000 2,000,000
Maturities of investment securities held to maturity 200,000 --
Net increase in loans (6,554,168) (2,103,467)
Purchases of premises and equipment (15,410) (36,592)
------------ ------------
Net cash used in investing activities (7,396,140) (2,340,059)
------------ ------------
Cash flows from financing activities:
Net decrease in deposit accounts (2,336,937) (4,516,724)
Net increase in short-term borrowings 733,785 1,302,434
Treasury stock (87,238) --
Dividends paid (491,497) (182,392)
------------ ------------
Net cash used in financing activities (2,181,887) (3,396,682)
------------ ------------
Net decrease in cash and cash equivalents (8,635,979) (4,695,101)
Cash and cash equivalents, beginning of period 23,217,175 22,921,060
------------ ------------
Cash and cash equivalents, end of period $ 14,581,196 $ 18,225,959
============ ============
Supplemental disclosure of cash flow data:
Cash paid during the year for:
Interest $ 894,484 $ 834,120
Income taxes 197,348 36,735
Supplemental disclosure for non-cash financing activity:
Dividends payable $ 232,254 $ 182,392
</TABLE>
See accompanying notes to consolidated financial statements.
6
<PAGE> 7
BANK OF SOUTH CAROLINA CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
MARCH 31, 2000
NOTE 1: BASIS OF PRESENTATION
Bank of South Carolina Corporation (the Company) was organized as a South
Carolina Corporation on April 17, 1995, as a one-bank holding company. The
Company, through its bank subsidiary The Bank of South Carolina (the Bank),
provides a full range of banking services including the taking of demand and
time deposits and the making of commercial, consumer and mortgage loans. The
Bank currently has four locations, two in Charleston, South Carolina, one in
Summerville, South Carolina and one in Mt. Pleasant, South Carolina. The
consolidated financial statements in this report are unaudited. All adjustments
consisting of normal recurring accruals which are, in the opinion of management,
necessary for fair presentation of the interim consolidated financial statements
have been included and fairly and accurately present the financial position,
results of operations and cash flows of the Company. The results of operations
for the period ending March 31, 2000 are not necessarily indicative of the
results which may be expected for the entire year.
The preparation of the consolidated financial statements in conformity with
generally accepted accounting principles requires management to make estimates
and assumptions. These estimates and assumptions affect the reported amounts of
assets and liabilities and the disclosure of contingent assets and liabilities
at the date of the financial statements. In addition, they affect the reported
amounts of income and expense during the reporting period. Actual results could
differ from these estimates and assumptions.
NOTE 2: INVESTMENT SECURITIES
Investment securities classified as "Held to Maturity" are carried at cost,
adjusted for amortization of premiums and accretion of discounts, computed by
the interest method. Investment securities classified as "Available for Sale"
are carried at fair value with unrealized gains and losses excluded from
earnings and reported as a separate component of shareholders' equity (net of
estimated tax effects). Realized gains or losses on the sale of investments are
based on the specific identification method.
NOTE 3: SHAREHOLDERS' EQUITY
A regular quarterly cash dividend of $.09 per share was approved for
shareholders of record March 31, 2000, payable April 28, 2000.
7
<PAGE> 8
ITEM 2
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Bank of South Carolina Corporation (the Company) is a financial institution
holding company headquartered in Charleston, South Carolina, with branch
operations in Summerville, South Carolina, Mt. Pleasant, South Carolina and the
West Ashley community of Charleston, South Carolina. It offers a broad range of
financial services through its wholly owned subsidiary, The Bank of South
Carolina (the Bank). The Bank is a state-chartered commercial bank which
operates principally in the counties of Charleston, Dorchester and Berkeley in
South Carolina.
For the first three months of 2000, the Company reported net income of $510,200
or basic and diluted earnings per share of $.20, an increase of $83,252 compared
to the net income for the first three months of 1999 of $426,948 or basic and
diluted earnings per share of $.16. Total assets for the period decreased
$1,333,058 or 0.86% from December 31, 1999 to March 31, 2000.
COMPARISON OF THREE MONTHS ENDED MARCH 31, 2000 TO THREE MONTHS ENDED MARCH 31,
1999
The Company's results of operations depends primarily on the level of its net
interest income, its non-interest income and its operating expenses. Net
interest income depends upon the volume of and rates associated with interest
earning assets and interest bearing liabilities which results in the net
interest spread. Net income increased $83,252 or 19.5% to $510,200 for the three
months ended March 31, 2000, from $426,948 for the three months ended March 31,
1999. The increase is primarily due to an increase in average interest-earning
assets with smaller growth in average interest-bearing liabilities.
NET INTEREST INCOME
Net interest income increased $249,985 or 13.88% to $2,051,174 for the three
months ended March 31, 2000, from $1,801,189 for the three months ended March
31, 1999. Total interest and fee income increased $386,840 or 14.62% for the
three months ended March 31, 2000, to $3,031,932 from $2,645,092 for the three
months ended March 31, 1999. This increase in interest and fee income is due to
an increase in both average volume and average yield of interest earning assets.
Average interest earning assets increased from $130.8 million at March 31, 1999
to $139.4 million at March 31, 2000 primarily due to an increase in average
loans receivable of $8.4 million between periods. The yield on interest earning
assets increased 62 basis points between periods to 8.73% for the three months
ended March 31, 2000 compared to 8.11% for the same period in 1999. The increase
in yield on average interest assets is due to an increase in the yield on
average loans receivable of 66 basis points to 10.26% for the three months ended
March 31, 2000 compared to 9.60% for the three months ended March 31, 1999.
Total interest expense increased $136,855 or 16.22% to $980,758 for the three
months ended March 31, 2000, from $843,903 for three months ended March 31,
1999. The increase is due to an increase in average interest bearing liabilities
and an increase in the cost of funds. Interest paid on deposits of $807,004
reflected an increase of 0.45% for the three months ended March 31, 2000,
compared to $803,392 of interest paid on deposits for the three months ended
March 31, 1999. Total interest bearing deposits averaged approximately $91.1
million for the three months ended March 31, 1999, as compared to approximately
$88.0 million for the three months ended March 31, 2000. The average cost of
interest bearing liabilities for the three months ended March 31, 1999, was
approximately 3.54% as compared to the average cost of interest bearing
liabilities of approximately 3.69% for the three months ended March 31, 2000.
Interest on short-term borrowings increased $133,243 to $173,754 for the period
ended March 31, 2000, from $40,511 for the three months ended March 31, 1999.
Short-term borrowings consist of demand notes to the U.S. Treasury and
securities sold under agreements to repurchase. Total short-term borrowings
averaged approximately $3.7 million for the three months ended March 31, 1999,
as compared to approximately $12.8 million for the three months ended March 31,
2000.
8
<PAGE> 9
PROVISION FOR LOAN LOSSES
The provision to the allowance for loan losses is based on management's and the
Loan Committee's ongoing review and evaluation of the loan portfolio and general
economic conditions on a monthly basis and by the Board of Directors on a
quarterly basis. Management's review and evaluation of the allowance for loan
losses is based on an analysis of historical trends, significant problem loans,
current market value of real estate or collateral and certain economic and other
factors affecting loans and real estate or collateral securing these loans.
Loans are charged off when, in the opinion of management, they are deemed to be
uncollectible. Recognized losses are charged against the allowance and
subsequent recoveries are added to the allowance. While management uses the best
information available to make evaluations, future adjustments to the allowance
may be necessary if economic conditions differ substantially from the
assumptions used in making the evaluation. The allowance for loan losses is
subject to periodic evaluation by various regulatory authorities and may be
subject to adjustment based upon information that is available to them at the
time of their examination.
During the quarter ended March 31, 2000, $40,000 was provided for loan losses
compared to $5,000 for the quarter ended March 31, 1999. At March 31, 2000, the
allowance for loan losses was $1,284,757 or 1.32% of total loans. This compares
to an allowance of $1,263,886 or 1.47% of total loans as of March 31, 1999.
During the quarter ended March 31, 2000, the Bank incurred net charge offs
totaling $5,381 as compared to net recoveries totaling $18,918 for the three
months ended March 31, 1999. There were four loans on non-accrual status at
March 31, 2000, totaling $106,361 and six loans on non-accrual at March 31,
1999, totaling $236,947. Loans past due over 30 days totaled $1.0 million or
1.07% of total loans at March 31, 2000, compared to $382,417 or 0.44% of total
loans at March 31, 1999. Generally, loans are placed on non-accrual status at
the earlier of when they are 90 days past due or when the collection of interest
becomes doubtful. The allowance for loan losses at March 31, 2000, in
management's opinion, is adequate for future losses that may occur in the loan
portfolio.
OTHER INCOME
Other income for the three months ended March 31, 2000, decreased $2,159 or
0.79% to $270,067 from $272,226 for the three months ended March 31, 1999. The
slight decrease is due to a decrease in mortgage loan activity between periods
resulting in a decrease in mortgage servicing release premiums.
OTHER EXPENSE
Bank overhead increased $97,574 or 6.96% to $1,499,041 for the three months
ended March 31, 2000, from $1,401,467 for the three months ended March 31, 1999.
Salaries and employee benefits increased $91,349 or 12.55% to $819,029 for the
three months ended March 31, 2000, from $727,680 for the three month period
ended March 31, 1999. This increase is primarily attributed to annual merit
raises given to the employees and the addition of eight staff.
9
<PAGE> 10
LIQUIDITY
The Company must maintain an adequate liquidity position in order to respond to
the short-term demand for funds caused by the withdrawals from deposit accounts,
maturities of repurchase agreements, extensions of credit and for the payment of
operating expenses. Maintaining this position of adequate liquidity is
accomplished through the management of a combination of liquid assets; those
which can be converted into cash and access to additional sources of funds.
Primary liquid assets of the Company are cash and due from banks, federal funds
sold, investments available for sale and other short-term investments. The
Company's primary liquid assets accounted for 33.57% and 36.41% of total assets
at March 31, 2000, and 1999, respectively. Additional sources of funds available
through the Bank for additional liquidity needs include borrowing on a
short-term basis from the Federal Reserve System, the purchasing of federal
funds from other financial institutions and increasing deposits by raising rates
paid. The Bank's core deposits consist of non-interest bearing accounts, NOW
accounts, money market accounts, time deposits and savings. Although such core
deposits are becoming increasingly more costly and interest sensitive for both
the Bank and the industry as a whole, such core deposits continue to provide the
Company with a large and stable source of funds. The Company closely monitors
its reliance on certificates of deposit greater than $100,000. The Company plans
to meet its future needs through maturities of investments and loans and through
the generation of deposits. The Company's management believes its liquidity
sources are adequate to meet its operating needs and does not know of any
trends, events or uncertainties that may result in a significant adverse effect
on the Company's liquidity position. At March 31, 2000 and 1999, the Bank's
liquidity ratio was 31.43% and 36.09%, respectively.
CAPITAL RESOURCES
The capital needs of the Company have been met to date through the $10,600,000
in capital raised at its initial offering, the retention of earnings less
dividends paid and the exercising of stock options for a total shareholders'
equity at March 31, 2000, of $17,054,130. The rate of asset growth from the
Bank's inception does not negatively impact this capital base. Effective
December 31, 1990, regulatory authorities adopted risk based capital guidelines
for financial institutions. These risk-based guidelines are designed to
highlight differences in risk profiles among financial institutions and to
account for off balance sheet risk. The guidelines established require a risk
based capital ratio of 8% for bank holding companies and banks. The total risk
based capital ratio at March 31, 2000, for the Bank is 17.72% and at March 31,
1999, was 18.52%. The Company's management does not know of any trends, events
or uncertainties that may result in the Company's capital resources materially
increasing or decreasing. The Bank does not plan for any significant capital
expenditures during 2000.
10
<PAGE> 11
ACCOUNTING AND REPORTING CHANGES
In June of 1998, the Financial Accounting Standards Board (the "FASB") issued
Statement of Financial Accounting Standards ("SFAS") No. 133, "Accounting for
Derivative Instruments and Hedging Activities." SFAS 133 establishes, for the
first time, comprehensive accounting and reporting standards for derivative
instruments and hedging activities. For accounting purposes, SFAS 133
comprehensively defines a derivative instrument. SFAS 133 requires that all
derivative instruments be recorded in the statement of financial position at
fair value. The accounting for the gain or loss due to change in fair value of
the derivative instrument depends on whether the derivative instrument qualifies
as a hedge. If the derivative does not qualify as a hedge, the gains or losses
are reported in earnings when they occur. However, if the derivative instrument
qualifies as a hedge, the accounting varies based on the type of risk being
hedged.
SFAS 137 "Accounting for Derivative Instruments and Hedging Activities -
Deferral of the Effective Date of FASB Statement 133 - an amendment of SFAS 133"
delayed the effective date of this statement for one year. SFAS 133 applies to
all entities and is effective as of the beginning of the first quarter of the
fiscal year beginning after June 15, 2000. The Company does not expect the
adoption of SFAS 133 to have a materially adverse impact on the consolidated
financial position or results or operations of the Company.
EFFECT OF INFLATION AND CHANGING PRICES
The consolidated financial statements and related consolidated financial data
presented herein have been prepared in accordance with generally accepted
accounting principles (GAAP) which require the measurement of financial position
and operating results in terms of historical dollars without considering the
changes in relative purchasing power of money over time due to inflation. The
primary impact of inflation on operations of the Bank is reflected in increased
operating costs. Unlike most industrial companies, virtually all the assets and
liabilities of a financial institution are monetary in nature. As a result,
interest rates generally have a more significant impact on a financial
institution's performance than do general levels of inflation. Interest rates do
not necessarily move in the same direction or to the same extent as the prices
of goods and services.
11
<PAGE> 12
PART II
ITEM 1. LEGAL PROCEEDINGS
The Company and its subsidiary from time to time are involved as plaintiff or
defendant in various legal actions incident to its business. These actions are
not believed to be material either individually or collectively to the
consolidated financial condition of the Company or its subsidiary.
ITEM 2. CHANGES IN SECURITIES
None.
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
None.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
None.
ITEM 5. OTHER INFORMATION
None.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
None.
12
<PAGE> 13
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.
BANK OF SOUTH CAROLINA CORPORATION
April 21, 2000
BY: /s/ Hugh C. Lane, Jr.
---------------------------------------
Hugh C. Lane, Jr.
President
BY: /s/ William L. Hiott, Jr.
---------------------------------------
William L. Hiott, Jr.
Executive Vice President & Treasurer
13
<TABLE> <S> <C>
<ARTICLE> 9
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-2000
<PERIOD-START> JAN-01-2000
<PERIOD-END> MAR-31-2000
<CASH> 7,524
<INT-BEARING-DEPOSITS> 7
<FED-FUNDS-SOLD> 7,050
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 36,885
<INVESTMENTS-CARRYING> 400
<INVESTMENTS-MARKET> 400
<LOANS> 97,298
<ALLOWANCE> 1,285
<TOTAL-ASSETS> 153,320
<DEPOSITS> 122,944
<SHORT-TERM> 12,173
<LIABILITIES-OTHER> 1,150
<LONG-TERM> 0
0
0
<COMMON> 0
<OTHER-SE> 17,054
<TOTAL-LIABILITIES-AND-EQUITY> 153,320
<INTEREST-LOAN> 2,426
<INTEREST-INVEST> 550
<INTEREST-OTHER> 56
<INTEREST-TOTAL> 3,032
<INTEREST-DEPOSIT> 807
<INTEREST-EXPENSE> 174
<INTEREST-INCOME-NET> 2,051
<LOAN-LOSSES> 40
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 1,499
<INCOME-PRETAX> 782
<INCOME-PRE-EXTRAORDINARY> 782
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 510
<EPS-BASIC> .20
<EPS-DILUTED> .20
<YIELD-ACTUAL> 0
<LOANS-NON> 106
<LOANS-PAST> 1,000
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 1,250
<CHARGE-OFFS> 5
<RECOVERIES> 0
<ALLOWANCE-CLOSE> 1,285
<ALLOWANCE-DOMESTIC> 1,285
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
