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: JUNE 30, 1997
Commission File Number: 0-27784
HUMBOLDT BANCORP
(Exact name of small business issuer as specified in its charter)
CALIFORNIA 93-1175446
(State or other jurisdiction of (I.R.S. Employer
Incorporation or organization) Identification No.)
701 FIFTH STREET
EUREKA, CALIFORNIA
(Address of principal executive offices)
95501
(Zip Code)
(707) 445-3233
(Registrant's telephone number, including area code)
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 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.
X Yes No
Number of shares of common stock outstanding at June 30, 1997 is: 1,576,542
<PAGE>2
PART I - FINANCIAL INFORMATION
ITEM 1 - FINANCIAL STATEMENTS
The information required by Rule 310(b) of Regulation S-B is attached hereto
as Exhibit A.
ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION
On November 10, 1995, the shareholders of Humboldt Bank (the "Bank") approved
a Plan of Reorganization by and between the Bank, Humboldt Merger Company and
Humboldt Bancorp (the "Company") whereby the Bank became a wholly owned
subsidiary of the Company. The reorganization became effective January 2,
1996. The sole business operation of the Company is conducted through its
wholly owned subsidiary, Humboldt Bank and its subsidiary "Bancorp Financial
Services". On January 2, 1997, the Bank invested two million dollars in
Bancorp Financial Services, a Sacramento based small ticket leasing company
which originates lease loans from five to one hundred thousand dollars on
equipment, furniture, telephone systems, computer systems, etc. This
operation is conducted on a 50-50 basis with Tehama Bank. The following
discussion, therefore, although presented on a consolidated basis, analyzes
primarily the financial condition and results of operations of the Bank and
subsidiary for the six month period ended June 30, 1997. Previously, the Bank
filed its periodic reports under the Securities Exchange Act of 1934 with the
Federal Reserve Board.
GARBERVILLE BRANCH PURCHASE
On June 19, 1996, the Board of Directors of the Bank authorized management to
enter into negotiations for the acquisition of the Garberville, California
branch (the "CalFed Branch") previously owned and operated by California
Federal Bank ("CalFed") of California. The Board of Directors voted final
approval of the purchase on January 15, 1997 and the branch was acquired on
May 9, 1997 directly from CalFed pursuant to an agreement dated December 6,
1996 between Humboldt Bank and CalFed (the "Agreement"). The branch had total
deposits of approximately twenty-three million ($23,000,000.00) and total
loans of approximately thirty-nine thousand ($39,000.00) at the time of
acquisition. Under the terms of the Agreement, Humboldt Bank agreed to
acquire the branch from CalFed for a deposit premium equal to 4.50% of total
deposits on date of acquisition. In addition, the Bank purchased
approximately thirty-six thousand dollars ($36,000.00) of fixed assets and the
cash in the branch, approximately two hundred seventy-five thousand dollars
($275,000.00).
CHANGES IN FINANCIAL CONDITION
During the six month period ended June 30, 1997, deposits increased $35.3
million or 18.3% to $227.9 million primarily as the result of the Garberville
Branch purchase of CalFed in May 1997. During the same period, loans
increased $4.8 million or 3.2% to $149.7 million, primarily as a result of an
increase in consumer loans and commercial, industrial and agricultural loans
being partially offset by a decrease in construction and land development and
commercial and agriculture loans secured by real estate. Investment
securities increased $22.3 million or 55.7% to $62.2 million. Excess
liquidity during the period was invested in federal funds.
<PAGE>3
During the six month period ending June 30, 1997, past due and non-accrual
loans decreased to $2.0 million (0.8% of total assets), and compares with $2.4
million (1.1% of total assets) at December 31, 1996. The Bank's allowance for
loan losses at June 30, 1997 was 1.6% of total loans, which compared with 1.5%
at December 31, 1996.
EARNINGS SUMMARY
Net income for the six months ended June 30, 1997 was $1,336,000, or $0.75 per
share, compared with net income of $1,459,000 or $0.87 per share in the same
period a year ago. This apparent decline can be attributed to the fact that
in the first six months of 1996, the realized gain on sale of securities was
$624,000 compared to $46,000 for the same period in 1997. Securities were
sold in the first quarter of 1996 to support an increase in loans.
NET INTEREST INCOME
Total interest income increased $1,179,000 or 14.8% for the six months ended
June 30, 1997, as compared to the same period during the prior year. For the
six months ended June 30, 1997, interest expense increased $430,000 or 15.8%
as compared to the same period during the prior year. Net interest income for
the six months ended June 30, 1997 was $6.0 million and $5.3 million for the
six months ended June 30, 1996. Average loans and leases as a percentage of
average earning assets was 72.8% during the six months ended June 30, 1997,
compared to 71.0% a year earlier. The average balance of other earning assets
as a percentage of average earning assets was 27.2% during the six months
ended June 30, 1997, compared to 29.0% a year earlier.
PROVISION FOR LOAN LOSSES
The Company maintains its allowance for loan losses at a level considered
appropriate by management to provide for known and inherent risks in the loan
portfolio. This consideration includes an evaluation of various factors
affecting the collectability of loans, including current and projected
economic conditions, past credit experience and a periodic review of the
Company's loan portfolio. The Company recorded an additional provision to the
allowance for loan losses for the six month period ended June 30, 1997 of
$350,000 compared to $463,000 for the same period in 1996. This small
decrease was mainly due to a maturing loan portfolio and a reduction in the
volume of bank classified loans. Loans charged off during the six month
period totaled $105,000 in 1997 and $191,000 in 1996. Recoveries in the same
period were $28,000 in 1997 and $20,000 in 1996.
On January 1, 1995, the Company adopted SFAS No. 114, "Accounting by Creditors
for Impairment of a Loan". The effect of adoption on the Company's financial
statements was not material.
<PAGE>4
NON-INTEREST INCOME
Non-interest income consists of gain/loss on sale of loans, fixed assets and
securities, service charges on deposit accounts, and other service charges,
commissions and fees including Lease Department, Merchant BankCard Department
and Issuing BankCard Department income. In the six months ended June 30,
1997, income from these sources was $3.4 million, an increase of $1.2 million
from the same period in 1996. The increase was attributable primarily to
increases in Merchant BankCard and Issuing BankCard Department income.
NON-INTEREST EXPENSE
Non-interest expenses increased $1.8 million or 35.2% to $7.1 million for the
six months ended June 30, 1997, compared to the same period in 1996. The
increase was due in part to increased personnel expenses, fixed asset expense,
Merchant BankCard and Issuing BankCard Department expense. At June 30, 1997,
the Company had a total of 187 full-time equivalent employees, compared to 157
full-time equivalent employees during the same period a year earlier.
CAPITAL RESOURCES
Management seeks to maintain adequate capital to support anticipated asset
growth and credit risks and to ensure that the Company meets all regulatory
capital requirements.
The Company is required to maintain certain regulatory minimum capital ratios.
The following table outlines these ratios at June 30, 1997:
REQUIRED MINIMUM COMPANY'S ACTUAL
TIER 1 6.00% 10.69
TOTAL CAPITAL 10.00% 11.94
LEVERAGE 5.00% 8.02
Future growth and earnings retention, as currently projected by management,
are expected to provide for the maintenance of capital ratios in conformance
with the requirements.
INCOME TAXES
The provision for income taxes was $729,000 for the six months ended June
30, 1997, compared to $908,000 in the same period a year earlier. The
provision is classified as current tax liability for interim reporting
purposes. The tax rate was 35.3% for the six months ended June 30, 1997,
compared to 38.4% for the same period in 1996. This small reduction
was recommended by the Company's tax consultant.
<PAGE>5
LIQUIDITY
The Company manages its liquidity to ensure that sufficient funds are
available to meet loan commitments and deposit fluctuations. Primary sources
of liquidity include cash and due from bank deposits, unpledged short-term
U.S. Government securities and federal funds sold. The Bank's primary
liquidity ratio, which is the ratio of liquid assets to total deposits, was
34.5% at June 30, 1997, and 26.4% at December 31, 1996. The large increase
can be attributed to the purchase of the Garberville office of CalFed in
May 1997.
PART II - OTHER INFORMATION
ITEM 1 - LEGAL PROCEEDINGS
The Company is not involved in any legal proceedings that would have a
material adverse effect on its financial statements.
ITEM 2 - CHANGES IN SECURITIES - NONE
ITEM 3 - DEFAULTS UPON SENIOR SECURITIES - NONE
ITEM 4 - SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
On or about March 14, 1997, a Proxy Statement of Humboldt Bancorp was mailed
to shareholders of record as of February 28, 1997 by the Board of Directors
soliciting proxies for use at the Annual Meeting of Shareholders to be held
on April 16, 1997. At the meeting the shareholders were asked to elect
management's nominees for Directors (11), and to ratify the appointment of
Richardson & Company as independent certified accountants. All eleven
nominated Directors were elected and Richardson & Company was ratified as the
Company's independent certified accountants. The results of the voting are
as follows:
<PAGE>6
PROPOSAL #1 - Election of Directors
FOR ALL NOMINEES WITHHOLD FROM ALL AGAINST
NOMINEES
Ronald F. Angell 971,424 Shares 5,778 Shares - 0 -
Myron T. Abrahamsen 971,424 Shares 5,778 Shares - 0 -
Marguerite Dalianes 971,424 Shares 5,778 Shares - 0 -
Francis A. Dutra 971,424 Shares 5,778 Shares - 0 -
Gary L. Evans 971,424 Shares 5,778 Shares 5,209 Shares
Lawrence Francesconi 971,424 Shares 5,778 Shares - 0 -
Clayton R. Janssen 971,424 Shares 5,778 Shares - 0 -
Theodore S. Mason 971,424 Shares 5,778 Shares - 0 -
John McBeth 971,424 Shares 5,778 Shares - 0 -
Michael Renner 971,424 Shares 5,778 Shares 777 Shares
John R. Winzler 971,424 Shares 5,778 Shares 5,209 Shares
PROPOSAL #2 - Ratify the Appointment of Richardson & Company as Independent
Certified Accountants
FOR: 950,265 Shares
AGAINST: 19 Shares
ABSTAIN: 27,126 Shares
ITEM 5 - OTHER INFORMATION - NONE
ITEM 6 - EXHIBITS AND REPORTS ON FORM 8-K - NONE
<PAGE>7
SIGNATURES
In accordance with the requirements of the Exchange Act, the registrant
caused this report to be signed by the undersigned, thereunto duly authorized.
Date: August 12, 1997 HUMBOLDT BANCORP
ALAN J. SMYTH
______________________________________
Alan J. Smyth
Senior Vice President & Chief Financial Officer
THEODORE S. MASON
______________________________________
Theodore S. Mason
President & C.E.O.
<PAGE>8
HUMBOLDT BANCORP AND SUBSIDIARY CONSOLIDATED BANK ONLY
CONSOLIDATED BALANCE SHEETS UNAUDITED AUDITED
(IN THOUSANDS OF DOLLARS) 06/30/97 12/31/96
ASSETS:
Cash and Due From Banks 11,059 10,247
Interest Bearing Deposits in Banks 3,020 20
Federal Funds Sold 11,300 6,570
Investment Securities (Market Value of
$62,183 and $39,933 respectively) 62,183 39,933
Loans Held For Sale 229 63
LOANS
Real Estate-Construction & Land Development 20,226 21,205
Real Estate-Commercial and Agriculture 59,949 61,030
Real Estate-Family & Multifamily Residential 31,027 31,456
Commercial, Industrial & Agriculture 27,023 20,559
Lease Financing 3,318 3,168
Consumer Loans 8,278 4,529
State and Political Subdivisions 0 2,875
Other 465 850
------- -------
150,286 145,672
Less: Deferred Loan Fees <811> <765>
------- -------
TOTAL LOANS 149,475 144,907
Less: Allowance For Credit Losses <2,419> <2,146>
------- -------
NET LOANS 147,056 142,761
Premises and Equipment (net) 5,917 6,064
OREO 0 0
Investment in associated companies 0 0
Intangible Assets 1,790 933
Other Assets 11,215 8,147
------- -------
TOTAL ASSETS 253,769 214,738
======= =======
LIABILITIES (Deposits)
Demand 58,203 50,412
Demand-Interest Bearing 43,950 41,511
Time - $100,000 and over 34,762 26,432
Other Time 70,045 57,951
Savings 20,919 16,270
------- -------
227,879 192,576
Borrowed Funds 768 775
Other Liabilities 3,966 1,787
------- -------
232,613 195,138
SHAREHOLDERS' EQUITY
Preferred stock, no par value; 1,000,000
shares authorized, none issued
Common stock, no par value; 1,000,000
shares authorized, 1,576,542 shares
in 1997 and 1,392,855 in 1996, issued
and outstanding 20,495 17,179
Retained Earnings 279 2,060
Unrealized Gain/Loss 382 361
------- -------
TOTAL SHAREHOLDERS' EQUITY 21,156 19,600
------- -------
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY 253,769 214,738
======= =======
NOTE: Humboldt Bancorp became effective January 2, 1996; See notes to
consolidated financial statements.
<PAGE>9
HUMBOLDT BANCORP STATEMENT OF
OPERATIONS For the three months
ended June 30, 1997 & 1996 (in UNAUDITED UNAUDITED
thousands of dollars) JUNE 30, 1997 JUNE 30, 1996
INTEREST INCOME
Interest and Fees on Loans 3,889 3,386
Interest on Deposits in Banks 23 13
Interest & Dividends on Securities 697 551
Interest on Federal Funds Sold 154 79
------ ------
Total Interest Income: 4,763 4,029
INTEREST EXPENSE
Interest on Demand Deposits 39 42
Interest on Other Savings Deposits 277 263
Interest on Time Deposits $100,000+ 411 297
Interest on All Other Time Deposits 891 727
Interest on Other Borrowings 49 12
------ ------
Total Interest Expense: 1,667 1,341
Net Interest Income 3,096 2,688
Provision For Loan Losses 144 223
NON-INTEREST INCOME
Service Charges on Deposit Accounts 277 156
Other Fee Income 1,162 975
All Other Non-interest Income 511 17
------ ------
Total Non-interest Income: 1,950 1,148
Realized Gain/Loss on Securities 20 35
NON-INTEREST EXPENSE
Salaries & Employee Benefits 1,655 1,367
Premises & Fixed Asset Expense 593 433
Other Non-interest Expense 1,569 910
------ ------
Total Non-interest Expense: 3,817 2,710
INCOME BEFORE TAXES 1,105 938
Applicable Income Taxes 403 344
------ ------
NET INCOME 702 594
====== ======
INCOME PER SHARE $0.39 $0.30
====== ======
NOTE: HUMBOLDT BANCORP BECAME EFFECTIVE JANUARY 2, 1996.
*See notes to consolidated financial statements
<PAGE>10
HUMBOLDT BANCORP STATEMENT OF OPERATIONS
For the six months ended June 30, 1997 UNAUDITED UNAUDITED
& 1996 (in thousands of dollars) JUNE 30, 1997 JUNE 30, 1996
(in thousands of dollars)
INTEREST INCOME
Interest and Fees on Loans 7,605 6,498
Interest on Deposits in Banks 25 26
Interest & Dividends on Securities 1,257 1,277
Interest on Federal Funds Sold 262 169
------ ------
Total Interest Income: 9,149 7,970
INTEREST EXPENSE
Interest on Demand Deposits 78 83
Interest on Other Savings Deposits 547 531
Interest on Time Deposits $100,000+ 765 600
Interest on All Other Time Deposits 1,692 1,478
Interest on Other Borrowings 64 24
------ ------
Total Interest Expense: 3,146 2,716
Net Interest Income 6,003 5,254
Provision For Loan Losses 350 463
NON-INTEREST INCOME
Service Charges on Deposit Accounts 490 304
Other Fee Income 2,519 1,818
All Other Non-interest Income 430 62
------ ------
Total Non-interest Income: 3,439 2,184
Realized Gain/Loss on Securities 46 624
NON-INTEREST EXPENSE
Salaries & Employee Benefits 3,247 2,659
Premises & Fixed Asset Expense 1,127 780
Other Non-interest Expense 2,699 1,793
------ ------
Total Non-interest Expense: 7,073 5,232
INCOME BEFORE TAXES 2,065 2,367
Applicable Income Taxes 729 908
------ ------
NET INCOME 1,336 1,459
====== ======
INCOME PER SHARE $0.75 $0.87
====== ======
NOTE: HUMBOLDT BANCORP BECAME EFFECTIVE JANUARY 2, 1996
*See notes to consolidated financial statements
<PAGE>11
HUMBOLDT BANCORP STATEMENT OF CASH FLOWS CONSOLIDATED BANK ONLY
For the six months ended June 30, 1997 & UNAUDITED UNAUDITED
1996 (in thousands of dollars) JUNE 30, 1997 JUNE 30, 1996
OPERATING ACTIVITIES
Net Income - Adjustments to reconcile net
income to net cash provided by operating
activities: 1,336 1,459
Provision for Loan Loss 350 463
Depreciation 728 424
Amortization and Other 575 434
<Gain>/Loss on Sale of Securities <45> <624>
Equity in Loss/Income of Associated Company 44 0
Net Change in Other Assets <1,126> <850>
Net Change in Other Liabilities 2,179 477
Net Change in Loans Held for Sale <166> 954
NET CASH PROVIDED BY OPERATING ACTIVITIES 3,875 2,737
INVESTING ACTIVITIES
Net Change in Interest-bearing Deposits in
Banks <3,000> 100
Federal Funds Sold (Net) <4,730> 2,600
Securities Held-to-Maturity
Investment Purchases 0 0
Proceeds From Maturities of Investments 0 0
Proceeds From Sale of Investments 0 0
Securities Available-for-Sale
Investment Purchases <32,276> <9,820>
Proceeds From Maturities of Investments 3,543 3,107
Proceeds From Sale of Investments 6,172 22,725
Net Change in Loans <4,607> <21,110>
Purchase of Premises and Equipment <545> <949>
Premium Paid on Deposits Purchased <1,039> 0
Investment in Associated Company <2,000> 0
NET CASH USED FOR INVESTING ACTIVITIES <38,482> <3,347>
FINANCING ACTIVITIES
Net Change in Deposits 35,228 1,302
Payments on Borrowed Funds <7> <6>
Stock Options Exercised 203 0
Fractional Shares Purchased <5> <5>
NET CASH PROVIDED BY FINANCING ACTIVITIES 35,419 1,291
NET CHANGE IN CASH AND CASH EQUIVALENTS 812 681
Cash and Due From Banks at Beginning of Period 10,247 7,281
CASH AND DUE FROM BANKS AT END OF PERIOD 11,059 7,962
SUPPLEMENTAL DISCLOSURES
Cash Paid During the Period For: Interest 2,997 2,700
Income Taxes 422 1,769
NON-CASH TRANSACTIONS
Unrealized Holding (Gain)Losses on Securities <38> <1,155>
Deferred Income Taxes on unrealized holding
losses on securities 16 <480>
Deposit Liabilities assumed in exchange for
assets acquired in connection with purchase
of branches 75 0
Stock Dividend 3,113 2,179
<PAGE>12
HUMBOLDT BANCORP AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
JUNE 30, 1997
(Unaudited)
NOTE 1 - BASIS OF PRESENTATION
In the opinion of Management, the unaudited interim consolidated financial
statements contain all adjustments of a normal recurring nature, which are
necessary to present fairly the financial condition of Humboldt Bancorp and
Subsidiary at June 30, 1997 and the results of operations for the six months
then ended.
Certain information and footnote disclosures presented in the Company's
annual financial statements are not included in these interim financial
statements. Accordingly, the accompanying unaudited interim consolidated
financial statements should be read in conjunction with the financial
statements and notes thereto included in the Company's 1996 Annual Report
on Form 10-KSB. The results of operations for the six months ended June
30, 1997 are not necessarily indicative of the operating results through
December 31, 1997.
NOTE 2 - NEW ACCOUNTING POLICIES
On January 1, 1995, the Company adopted SFAS No. 114, "Accounting by Creditors
for Impairment of a Loan". This statement addresses the accounting and
reporting by creditors for impairment of certain loans. A loan is impaired
when, based upon current information and events, it is probable that a
creditor will be unable to collect all amounts due according to the
contractual terms of the loan agreement. These statements are applicable
to all loans, uncollateralized as well as collateralized, except large groups
of smaller-balance homogeneous loans that are collectively evaluated for
impairment such as consumer installment loans and loans held for sale which
are measured at fair value or at the lower of cost or fair value. Impairment
is measured based on the present value of expected future cash flows
discounted at the loan's effective interest rate, except that as a practical
expedient, the Company measures impairment based on a loan's observable
market price or the fair value of the collateral if the loan is collateral
dependent. Loans are measured for impairment as part of the Company's normal
internal asset review process.
Interest income is recognized on impaired loans in a manner similar to that
of all loans. It is the Company's policy to place loans that are delinquent
90 days or more as to principal or interest on a nonaccrual of interest
basis unless secured and in the process of collection, and to reverse from
current income accrued but uncollected interest. Cash payments subsequently
received on nonaccrual loans are recognized as income only where the future
collection of principal is considered by management to be probable.
At June 30, 1997, the Company's total recorded investment in impaired loans
was $102,000 for which there is a related allowance for credit losses of
$43,000 determined in accordance with these Statements.
<PAGE>13
The average recorded investment in the impaired loans during the six months
ended June 30, 1997 was $98,000. The related amount of interest income
recognized during the period that such loans were impaired was $2,000 and the
amount of interest income recognized using a cash-basis method of accounting
during the time within the period that the loans were impaired was $1,800.
NOTE 3 - CONSOLIDATION
The consolidated financial statements include the accounts of Humboldt
Bancorp and its wholly-owned subsidiary, Humboldt Bank and subsidiary. All
material intercompany accounts and transactions have been eliminated in
consolidation.
NOTE 4 - COMMITMENTS
The Bank has outstanding performance letters of credit of $4.2 million at
June 30, 1997.
NOTE 5 - NET INCOME PER COMMON SHARE
Net income per share is calculated by using the weighted average common shares
outstanding. The weighted average number of common shares used in computing
the net income per common share for the period ending June 30, 1997 was
1,782,877 and for the period ending June 30, 1996 was 1,670,644.
<TABLE> <S> <C>
<ARTICLE> 9
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM UNAUDITED
CONSOLIDATED BALANCE SHEETS, CONSOLIDATED STATEMENTS OF OPERATIONS AND OTHER
INTERNALLY GENERATED REPORTS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO
SUCH FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> JUN-30-1997
<CASH> 11,059
<INT-BEARING-DEPOSITS> 3,020
<FED-FUNDS-SOLD> 11,300
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 62,183
<INVESTMENTS-CARRYING> 0
<INVESTMENTS-MARKET> 0
<LOANS> 149,704
<ALLOWANCE> (2,419)
<TOTAL-ASSETS> 253,769
<DEPOSITS> 227,879
<SHORT-TERM> 0
<LIABILITIES-OTHER> 3,966
<LONG-TERM> 768
0
0
<COMMON> 20,495
<OTHER-SE> 661
<TOTAL-LIABILITIES-AND-EQUITY> 253,769
<INTEREST-LOAN> 7,605
<INTEREST-INVEST> 1,257
<INTEREST-OTHER> 287
<INTEREST-TOTAL> 9,149
<INTEREST-DEPOSIT> 3,082
<INTEREST-EXPENSE> 3,146
<INTEREST-INCOME-NET> 6,003
<LOAN-LOSSES> 350
<SECURITIES-GAINS> 46
<EXPENSE-OTHER> 7,073
<INCOME-PRETAX> 2,065
<INCOME-PRE-EXTRAORDINARY> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,336
<EPS-PRIMARY> 0.75
<EPS-DILUTED> 0.75
<YIELD-ACTUAL> 5.70
<LOANS-NON> 72
<LOANS-PAST> 74
<LOANS-TROUBLED> 128
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 2,146
<CHARGE-OFFS> (105)
<RECOVERIES> 28
<ALLOWANCE-CLOSE> 2,419
<ALLOWANCE-DOMESTIC> 417
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 2,002
</TABLE>
