UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
450 5TH STREET, N.W.
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 June 30, 1999
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from___to___.Commission File No. 028250
CNS BANCORP, INC.
Delaware 43-1738315
(State or other jurisdiction of(I.R.S. Employer Identification No.)
incorporation or organization)
427 Monroe Street, Jefferson City, Missouri 65101
Registrant's telephone number, including area code (573) 634-3336
Not applicable
(Former name, former address and former fiscal year, if changed since last
report)
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 12 months (or for such shorter period that the registrant was
required to file such report), and (2) has been subject to such filing
requirements for the past 90 days.
Yes X No .
Indicate the number of shares outstanding of the issuer's classes of
common stock, as of the latest practicable date.
Class Outstanding June 30, 1999
Common Stock, par value $.01 per share 1,418,286 Shares
CNS BANCORP, INC. AND SUBSIDIARY
FORM 10-QSB
FOR THE QUARTER ENDED JUNE 30, 1999
INDEX
PAGE NO.
PART I - Financial Information
Consolidated Statements of Financial Condition 1
Consolidated Statements of Income 2
Consolidated Statements of Cash Flows 3
Notes to Consolidated Financial Statements 4
Management's Discussion and Analysis of
Financial Condition and Results of Operations 5
PART II - Other Information 9
<PAGE>
CNS BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Unaudited)
ASSETS June 30, 1999 December 31,1998
Cash and due from depository institutions $11,968.548 $ 9,813,816
Securities available-for-sale $17,499,837 $17,715,083
Stock in Federal Home Loan Bank $ 662,500 $ 662,500
Loans held-for-sale, net $ 54,794 $ 1,767,075
Loans receivable, net $59,403,478 $61,699,912
Accrued interest receivable $ 513,517 $ 561,175
Real estate owned, net $ 722,951 $ 710,085
Premises and equipment, net $ 1,562,255 $ 1,611,454
Income tax receivable $ 314,430 $ 166,356
Other assets $ 388,564 $ 693,189
Total assets $93,090,874 $95,400,645
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits $70,547,438 $72,689,165
Borrowed funds $ 557,875 $ 570,983
Advances from borrowers for
taxes and insurance $ 140,226 $ 34,287
Accrued expenses and other liabilities $ 324,355 $ 365,419
Total liabilities $71,569,894 $73,659,854
Common stock $ 16,531 $ 16,531
Additional paid-in-capital $ 16,131,385 $16,121,656
Retained earnings, substantially restricted $ 11,155,725 $11,007,233
Deferred compensation-ESOP ($885,723) ($951,361)
Deferred compensation -MRDP ($619,922) ($723,243)
Stock held in trust for Executive
Deferred Compensation Plan ($101,626) ($94,258)
Treasury stock ($3,585,067) ($3,182,279)
Accumulated other comprehensive income ($590,323) ($453,488)
Total stockholders' equity $ 21,520,980 $21,740,791
Total liabilities and stockholders' equity $93,090,874 $95,400,645
See accompanying notes to consolidated financial statements.
<PAGE>
CNS BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
Three Months Ended Six Months Ended
June 30 June 30 June 30 June 30
1999 1998 1999 1998
INTEREST INCOME
Mortgage loans $1,117,976 $1,276,879 $2,283,121 $2,582,259
Consumer and other loans $ 72,682 $ 46,932 $ 150,423 $ 88,946
Investment securities $ 67,006 $ 112,893 $ 131,365 $ 215,044
Mortgage-backed securities $ 108,277 $ 149,102 $ 223,909 $ 307,893
Other interest-earning assets $ 224,902 $ 145,625 $ 424,502 $ 278,890
Total interest income $1,590,843 $1,731,431 $3,213,320 $3,473,032
INTEREST EXPENSE
Deposits $ 803,849 $ 908,301 $1,635,008 $1,783,428
Borrowed money $ 9,026 $ 9,436 $ 18,056 $ 18,865
Total interest expense $ 812,875 $ 917,737 $1,653,064 $1,802,293
Net interest income $ 777,968 $ 813,694 $1,560,256 $1,670,739
PROVISION (BENEFIT) FOR
LOAN LOSSES $4,293 ($ 258) ($ 20,410)$ 14,010
Net interest income after
provision for loan losses $ 773,675 $ 813,952 $1,580,666 $1,656,729
NONINTEREST INCOME
Loan servicing fees $ 22,908 $ 12,629 $ 44,247 $ 23,491
Income from real estate owned $ 1,050 $ ( 2,053) $ 2,700 $ (403)
Net gain on sale of assets $ 9,660 $ 95,734 $ 79,651 $ 184,309
Other $ 39,444 $ 34,289 $ 71,708 $ 78,110
Total non-interest income $ 73,062 $ 140,599 $ 198,306 $ 285,507
NONINTEREST EXPENSE
Compensation and benefits $ 344,781 $ 351,019 $ 693,520 $ 707,352
Occupancy and equipment $ 68,811 $ 63,153 $ 132,894 $ 126,475
Deposit insurance premiums $ 1,130 $ 10,909 $ 22,260 $ 22,840
Other $ 187,282 $ 193,088 $ 345,911 $ 335,223
Total non-interest expense $ 612,004 $ 618,169 $1,194,585 $1,191,890
Net income before income taxes $ 234,733 $ 336,382 $ 584,387 $ 750,346
PROVISION FOR INCOME TAXES $ 94,280 $ 133,107 $ 234,155 $ 298,672
Net income $ 140,453 $ 203,275 $ 350,232 $ 451,674
Other comprehensive income (loss),
net of income taxes:
Unrealized gains (losses) on securities$(125,776) $(21,175) $(136,835) $(5,450)
Comprehensive income $ 14,677 $ 182,100 $ 213,397 $ 446,224
Earnings per share $ 0.11 $ 0.13 $ 0.26 $ 0.29
Diluted earnings per share $ 0.10 $ 0.12 $ 0.24 $ 0.27
Weighted average shares
outstanding 1,330,504 1,540,781 1,349,826 1,541,923
Dividends per share $ 0.075 $ 0.060 $ 0.15 $ 0.12
See accompanying notes to consolidated financial statements.
CNS BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
SIX MONTHS ENDED
June 30, 1999 June 30, 1998
Cash flows from operating activities:
Net Income $ 350,232 $ 451,674
Adjustments to reconcile net income to net cash flows
provided by (used for) operating activities:
Depreciation $ 62,726 $ 58,549
Provision (Benefit) for loan losses($ 20,410) $ 14,010
Amortization of premiums and accretion
of discounts on securities available-for-sale $ 26,275 $ 67,483
Proceeds from the sale of loans held-for-sale $ 7,098,388 $10,426,026
Origination of loans held-for-sale ($ 5,358,299) ($ 8,778,256)
(Gain)/loss on sales of loans held-for-sale ($ 27,808) ($ 184,309)
ESOP expenses $ 88,899 $ 140,937
MRDP expenses $ 103,321 $ 103,320
Decrease (increase) in:
Accrued interest receivable $ 47,658 $ 42,469
Other assets $ 304,625 $ 29,922
Income tax receivable ($ 45,750) $ 42,966
Increase (decrease) in:
Accrued expenses and other liabilities ($ 48,432) ($ 23,000)
Net cash provided by (used for) operating activities $ 2,581,425 $ 2,391,791
Cash flows from investing activities:
Loans:
Loan (originations) and principal payments - net $ 8,718,923 $ 6,019,767
Purchases of:
Loans receivable ($ 6,402,080) ($ 5,271,690)
Securities available-for-sale ($ 1,711,184) ($ 749,391)
Proceeds from maturity or pay down of:
Securities available-for-sale $ 1,660,995 $ 4,266,402
Proceeds from sales of real estate owned ($ 12,866) ($ 56,414)
Cash outflows for premises and equipment ($ 13,527) ($ 26,214)
Net cash provided by investing activities $ 2,240,261 $ 4,182,460
Cash flows from financing activities:
Net increase (decrease) in:
Deposits ($ 2,141,727) ($ 339,674)
Advances from borrowers for taxes and insurance $ 105,939 $ 118,600
Borrowed funds ($ 13,108) ($ 12,303)
Treasury stock purchased ($ 402,788) ($ 153,652)
Dividends paid to shareholders ($ 215,272) ($ 197,978)
Net cash provided by financing activities ($ 2,666,956) ($ 585,007)
Net increase (decrease) in cash and cash equivalents $2,154,730 $ 5,989,245
Cash and cash equivalents at beginning of period $ 9,813,816 $ 4,490,638
Cash and cash equivalents at end of period $ 11,968,548 $10,494,840
Supplemental schedule of cash flow information:
Cash paid during the period for:
Interest on deposits $ 282,167 $ 355,250
Income taxes $ 294,572 $ 270,409
See accompanying notes to consolidated financial statements.
CNS BANCORP, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements (Unaudited)
(1) Basis of Presentation
The accompanying unaudited consolidated financial statements
have been prepared in accordance with Generally Accepted
Accounting Principles (GAAP) for interim financial information
and with the instructions to Form 10-QSB and Article 10 of
Regulation S-X. Accordingly, they do not include all of the
information and footnotes required by GAAP for complete financial
statements. In the opinion of management, all adjustments
necessary for a fair presentation have been included. The results of
operations and other data for the three months and six months
ended June 30, 1999 are not necessarily indicative of results that
may be expected for the entire fiscal year ending December 31,
1999.
The unaudited consolidated financial statements include the
amounts of CNS Bancorp, Inc. (the "Company") and its wholly-
owned subsidiary, City National Savings Bank, FSB (the "Savings
Bank") and the Savings Bank's wholly-owned subsidiary, Parity
Insurance Agency, Inc., and its wholly-owned subsidiary, City
National Real Estate, Inc., for the three months and six months
ended June 30, 1999. Material intercompany accounts and
transactions have been eliminated in consolidation.
(2) Employee Stock Ownership Plan
The Savings Bank has established for eligible employees an
Employee Stock Ownership Plan (ESOP). The ESOP borrowed
$1,322,500 from the Company and purchased 132,250 shares of the
Company's common stock. The Savings Bank is expected to make
scheduled discretionary cash contributions to the ESOP sufficient to
service the amount borrowed. The $1,322,500 in stock issued by
the Company is reflected in the accompanying consolidated
financial statements as a charge to unearned compensation and a
credit to common stock and paid-in capital. The unamortized
balance of unearned compensation is shown as a deduction of
stockholders' equity. The unpaid balance of the ESOP loan is
eliminated in consolidation.
(3) Earnings Per Share
Earnings per share (EPS) for the quarter ended June 30, 1998 and
1999 were calculated as follows:
1998 1999
Weighted Weighted
Average Average
Shares Per-share Shares Per-share
(denominator) amount (denominator) amount
Basic EPS 1,540,781 $0.13 1,330,504 $0.11
Effect of dilutive shares
Unallocated ESOP Shares 112,344 101,430
Stock options 10,742 0
Diluted EPS 1,663,867 $0.12 1,431,934 $0.10
Management Discussion and Analysis of
Financial Condition and Results of Operation
General
The principal business of CNS Bancorp, Inc. ("Company") consists of
directing the business of City National Savings Bank, FSB. ("Savings
Bank"). Therefore, the discussion in the Managements's Discussion and
Analysis of Financial Condition and Results of Operation relates to the
Savings Bank and its operations.
Liquidity and Capital Resources
The Savings Bank's principal sources of funds are cash receipts from
deposits, loan repayments by borrowers and net earnings. The Savings
Bank had $558,000 borrowed from the Federal Home Loan Bank of Des
Moines (FHLB) at June 30, 1999 and an agreement with the FHLB to
provide additional cash advances should the need arise.
For regulatory purposes, liquidity is measured as a ratio of cash and certain
investments to withdrawable deposits. The minimum level of liquidity
required by regulation is presently 4%. The Savings Bank's liquidity ratio
was 24.27% at June 30, 1999.
Commitments to originate mortgage loans and unfunded loans in process
were approximately $944,000 and $3.8 million respectively at June 30,
1999.
The thrift industry historically has accepted interest rate risk as a part of
its operating philosophy. Long-term, fixed-rate loans were funded with
deposits which adjust to market interest rates more frequently. From the
early 1980's up until 1996, the Savings Bank has originated primarily
adjustable-rate mortgage loans for its loan portfolio. In early 1996 the
Savings Bank began keeping some of the fixed rate loans it originates. As
of June 30, 1999 the Savings Bank held adjustable-rate mortgage loans of
$41 million or 69.49% of total mortgage loans.
The Savings Bank is required to meet certain tangible, core and risk-based
capital requirements. The following table presents the Savings Bank's
capital position relative to its minimum regulatory capital requirements at
June 30, 1999:
Percent of Adjusted
Amount Total
Assets
(Unaudited)
(Dollars in
Thousands)
Tangible capital $17,978
19.75%
Tangible capital requirement $1,365
1.50%
Excess $16,613
18.25%
Core capital $17,978
19.75%
Core capital requirement $3,641
4.00%
Excess $14,337
15.75%
Risk-based capital $18,355
39.31%
Risk-based capital requirement $3,736
8.00%
Excess $14,619
31.31%
Financial Condition
Assets decreased from $95.4 million at December 31, 1998 to $93.1 million
at June 30, 1999. Cash and due from depository institutions increased from
$9.8 million at December 31, 1998 to $12.0 million at June 30, 1999 due
primarily to loan sales and repayments. Securities available-for-sale
decreased from $17.7 million at December 31, 1998 to $17.5 million at
June 30, 1999. Loans held-for-sale and loans receivable, net decreased
from $63.5 million at December 31, 1998 to $59.5 million at June 30, 1999
due to repayments and loan sales during the period.
Real estate owned, net increased from $710,000 at December 31, 1998 to
$723,000 at June 30, 1999 due to an increase in the Company's ownership
interest in the Briar Pointe LLC partially offset by the sale of three lots in
that project.
Deposits decreased from $72.7 million at December 31, 1998 to $70.5
million at June 30, 1999.
It is the policy of the Savings Bank to cease accruing interest on loans 90
days or more past due. Nonaccrual loans decreased from $156,000 at
December 31, 1998 to $153,000 at June 30, 1999 as a result of principal
repayment.
Results of Operations
Net income decreased $63,000 for the three months ended June 30, 1999
and $101,000 for the six months ended June 30, 1999 compared to the same
periods in 1998. The primary reasons for the decrease in net earnings were
decreases in net interest income and non-interest income and an increase in
provision for loan losses which was partially offset by a decrease in non-
interest expense and provision for income taxes.
Net Interest Income
Net interest income decreased from $814,000 for the three months ended
June 30, 1998 to $778,000 for the three months ended June 30, 1999 and
from $1.7 million for the six months ended June 30, 1998 to $1.6 million
for the six months ended June 30, 1999. The primary reasons for the
decrease in net interest income were decreases in interest income from
mortgage loans, investment securities and mortgage-backed securities
which was partially offset by an increase in interest income from consumer
and other loans and other interest-earning assets and a decrease in interest
expense on deposits and borrowed money. Interest income from mortgage
loans decreased $159,000 and $299,000 for the three months and six
months respectively ended June 30, 1999 compared to the same periods in
1998. The primary reason for the decrease in interest income from
mortgage loans is a reduction in the average mortgage loan balance and
yield in 1999 compared to 1998. The decrease in average balance is due to
repayments and sale of loans. Interest income from investment securities
decreased due to a decrease in the average investment balance and a lower
yield in 1999 compared to 1998. Interest income from mortgage-backed-
securities decreased due to the continued reduction in balance from
repayments. Interest income from consumer and other loans increased
$26,000 for the three months and $62,000 for the six months ended June
30, 1999 compared to the same periods in 1998. The primary reason for the
increase in interest income from consumer and other loans is an increase in
the average balance of commercial loans. Interest income from other
interest-earning assets increased $79,000 for the three months and $146,000
for the six months ended June 30, 1999 compared to the same periods in
1998. The primary reason for the increase in income from other interest-
earning assets is an increase in the average balance this year compared to
the prior year. The increase in average balance is the result of having a
larger balance on deposit with the FHLB this year. The increase in deposit
balance is the result of the afore mentioned loan sales and repayments.
Interest expense on deposits decreased $105,000 for the three months and
$148,000 for the six months ended June 30, 1999 compared to the same
period in 1998. The primary reason for the decrease in interest expense on
deposits is a decrease in the average deposit balance and a decrease in
average rate this year compared to last year.
Provision for Loan Losses
Provision for loan losses is based upon management's consideration of
economic conditions which may affect the ability of borrowers to repay their
loans. Management also reviews individual loans for which full
collectibility may not be reasonably assured and considers, among other
matters, the risks inherent in the Bank's portfolio and the estimated fair
value of the underlying collateral. This evaluation is ongoing and results in
variations in the Bank's provision for loan losses. As a result of this
evaluation, the Bank's provision for loan losses increased from a recovery of
$258 from the allowance for loan losses for the three months ended June 30,
1998 to a $4,000 provision for loan losses for the three months ended June
30, 1999 and decreased from a $14,000 provision for loan losses for the six
months ended June 30, 1998 to a recovery of $20,000 from the allowance
for loan losses for the six months ended June 30, 1999. The increase in
provision for loan losses during the second quarter of 1999 was primarily
due to the classification of a large commercial real estate loan. The
decrease in provision for loan losses during the six months of 1999 is
primarily due to a decrease in average loan balance.
Non-interest Income
Non-interest income decreased $68,000 for the three months ended June 30,
1999 and $87,000 for the six months ended June 30, 1999 compared to the
same periods in 1998. The decrease in non-interest income in 1999 was
primarily due to the decrease in gain on sale of loans and other non-interest
income which was partially offset by an increase in loan servicing fees and
income from real estate owned. The Company sold $740,000 of loans to
Freddie Mac during the second quarter of 1999 compared to $5.3 million in
1998 and $4.7 million during the first six months of 1999 compared to
$10.2 million in 1998.
Non-interest Expense
Non-interest expense decreased $6,000 for the three months ended June 30,
1999 and increased $3,000 for the six months ended June 30, 1999
compared to the same periods in 1998. The decrease in non-interest
expense during the second quarter of 1999 is due primarily to a decrease in
compensation and other benefits and other noninterest expense which was
partially offset by a increase in occupancy and equipment. The increase in
other noninterest expense for the six months ended June 30, 1999 was
primarily due to the amortization of mortgage servicing rights. The
decrease in compensation and benefits is due primarily to decrease in
compensation expense for the ESOP due to a lower average share price
during the first quarter of 1999 as compared to the first quarter of 1998.
Provision for Income Taxes
Income taxes decreased $39,000 for the three months ended June 30, 1999
and $65,000 for the six months ended June 30, 1999 compared to the same
periods in 1998.
Year 2000 Considerations
The Company has a Year 2000 Action Plan which management is using to
identify and correct Year 2000 compliance issues. The Company has
reviewed all services and operation components to identify technical and
non-technical issues. Having identified internal components and external
components, the Company has replaced its computer hardware with Year
2000 compliant equipment. The Company has requested third party
providers to insure Year 2000 compliance with software and services and
has required testing of these services to assure compliance. All third party
providers have identified Year 2000 issues and are completing revisions to
systems and software to become Year 2000 compliant.
The primary service provider for the Company is Fiserv who provides data
processing. Fiserv has provided the Company with 'proxy' test results
indicating Year 2000 compliance. The Company completed the
connectivity testing with Fiserv during the first quarter of 1999.
The Company has completed the testing phase of the Year 2000 Action
Plan. This required the testing of systems and software to insure continued
service to customers until and beyond the Year 2000. All systems have
passed the testing phase, all functional problems were identified and
remedied. Failure to remedy Year 2000 issues could result in an
interruption of service to customers.
The cost incurred by the Company for Year 2000 compliance to date is
approximately $74,000, most of which was capitalized for three years.
Fiserv is currently billing approximately $325 monthly as reimbursement
for their Year 2000 testing. It is expected that the Company will have
additional reimbursement costs of approximately $3,500.
The Company is not able to estimate the potential loss of revenue due to the
Year 2000 issue, since the exact impact and longevity of any potential
problems cannot be predicted. However, because the majority of the loan
portfolio consists of residential mortgages, management believes the Year
2000 issue will not impair these borrowers' ability to repay their debt.
The Company is preparing for the event of different systems not being Year
2000 capable as of June 30, 1999. Any system found to be not in
compliance will be handled manually or by another provider that is Year
2000 compliant. There can be no assurances the Company's Year 2000
Action Plan will effectively address the Year 2000 issue. Partial or total
system failures would have an adverse effect on the Company's operations
and could result in a material financial impact.
<PAGE>
CNS BANCORP, INC. AND SUBSIDIARIES
PART II - Other Information
Item 1 - Legal Proceeding
There are no material legal proceedings to which the Company or
the Savings Bank is a party or to which any of their property is
subject. From time to time, the Savings Bank is a party to various
legal proceedings incident to its business.
Item 2 - Changes in Securities None.
Item 3 - Defaults upon Senior Securities Not applicable.
Item 4 - Submission of Matters to a Vote of Security Holders
The Annual Meeting of Stockholders of the Company was held on
April 20, 1999. The results of the vote on the matters presented at
the Meeting is as follows:
1. The following individuals were elected as directors, each for a
three year term:
Vote For Vote Withheld
Robert E. Chiles 1,307,118 900
John C. Kolb 1,307,118 900
The terms of Directors James F. McHenry, Ronald D.
Roberson, Richard E. Caplinger and Mr. Dallmeyer
continued after the meeting.
Item 5 - Other Information-Subsequent Events None
Item 6 - Exhibits and Reports on Form 8-K.
(a) Exhibit 27 Financial Data Schedule
(b) Reports on Form 8-K: No reports on Form 8-K have been
filed during the quarter for which this report is filed.
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.
CNS BANCORP,
INC.
(Registrant)
DATE: August 13, 1999 BY: Robert E. Chiles,
President and
Duly Authorized Officer
BY: David L. Jobe,
Treasurer and
Chief Financial Officer
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 9
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-END> JUN-30-1999
<CASH> 11,968,548
<INT-BEARING-DEPOSITS> 9,043,875
<FED-FUNDS-SOLD> 0
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 17,499,837
<INVESTMENTS-CARRYING> 18,522,512
<INVESTMENTS-MARKET> 17,499,837
<LOANS> 59,458,272
<ALLOWANCE> 387,866
<TOTAL-ASSETS> 93,090,874
<DEPOSITS> 70,547,438
<SHORT-TERM> 0
<LIABILITIES-OTHER> 1,022,456
<LONG-TERM> 1,022,456
0
0
<COMMON> 16,531
<OTHER-SE> 21,520,980
<TOTAL-LIABILITIES-AND-EQUITY> 93,090,874
<INTEREST-LOAN> 2,433,544
<INTEREST-INVEST> 365,274
<INTEREST-OTHER> 424,502
<INTEREST-TOTAL> 3,213,320
<INTEREST-DEPOSIT> 1,635,008
<INTEREST-EXPENSE> 1,653,064
<INTEREST-INCOME-NET> 1,560,256
<LOAN-LOSSES> -20,410
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 1,194,585
<INCOME-PRETAX> 584,387
<INCOME-PRE-EXTRAORDINARY> 584,387
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 350,232
<EPS-BASIC> .26
<EPS-DILUTED> .24
<YIELD-ACTUAL> 0
<LOANS-NON> 0
<LOANS-PAST> 0
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 385,095
<CHARGE-OFFS> 0
<RECOVERIES> 0
<ALLOWANCE-CLOSE> 387,866
<ALLOWANCE-DOMESTIC> 387,866
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>