SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 1996
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 Number: 333-12305
SVB Financial Services, Inc.
(Exact name of registrant as specified in its charter)
New Jersey 22-3438058
(State of other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
103 West End Avenue, Somerville, New Jersey 08876
(Address of principal executive officers) (Zip Code)
(908) 704-1188
(Registrant's telephone number, including area code)
(Former name, former address and former fiscal year, if changed since last
report)
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 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.
[ X ] Yes [ ] No
As of June 30, 1996 there were 1,163,000 shares of common stock, $4.17 par value
outstanding
<PAGE>
SVB FINANCIAL SERVICES, INC.
FORM 10-Q
INDEX
PART I - FINANCIAL INFORMATION
ITEM 1 - Financial Statements and Notes to Consolidated Financial Statements
ITEM 2 - Management's Discussion and Analysis of Financial Condition and
Results of Operations
PART II - OTHER INFORMATION
ITEM 6 - Exhibits and Reports on Form 8-K
SIGNATURES
<PAGE>
<TABLE>
<CAPTION>
SVB FINANCIAL SERVICES, INC.
CONSOLIDATED STATEMENTS OF CONDITIONS SEPTEMBER 30, 1996 AND DECEMBER 31, 1995
September 30, December 31,
1996 1995
------------- -------------
<S> <C> <C>
ASSETS
Cash & Due from Banks .......................................... $ 5,796,555 $ 2,814,877
Federal Funds Sold ............................................. 3,950,000 4,575,000
Other Short Term Investments ................................... 792,004 595,063
------------- -------------
Total Cash and Cash Equivalents ........................ 10,538,559 7,984,940
------------- -------------
Securities
Available for Sale at Market Value .......................... 6,819,775 4,874,738
Held to Maturity, Market Value $14,300,537
in 1996 and $14,649,141 in 1995.............................. 14,313,141 14,580,823
------------- -------------
Total Securities ....................................... 21,132,916 19,455,561
------------- -------------
Loans .......................................................... 83,551,448 60,144,428
Allowance for Possible Loan Losses .......................... (713,116) (527,019)
Unearned Income ............................................. (88,151) (89,242)
------------- -------------
Net Loans .............................................. 82,750,181 59,528,167
------------- -------------
Premises & Equipment, Net ...................................... 833,700 716,215
Other Assets Including Deferred Income Taxes, Net .............. 2,025,839 1,059,031
Total Assets ........................................... $ 117,281,195 $ 88,743,914
============= =============
LIABILITIES & SHAREHOLDERS' EQUITY
LIABILITIES
Deposits
Demand
Non Interest Bearing ........................................ $ 17,940,709 $ 12,829,836
NOW Accounts ................................................ 6,699,261 5,875,285
Savings ........................................................ 8,047,779 5,700,503
Money Market Accounts .......................................... 12,235,115 9,315,378
Time
Greater than $100,000 ....................................... 8,930,777 5,202,055
Less than $100,000 .......................................... 53,826,361 40,756,735
------------- -------------
Total Deposits .............................................. 107,680,002 79,679,792
Accrued Expenses & Other Liabilities ........................... 569,993 360,946
------------- -------------
Total Liabilities ...................................... 108,249,995 80,040,738
------------- -------------
<PAGE>
<CAPTION>
SVB FINANCIAL SERVICES, INC.
CONSOLIDATED STATEMENTS OF CONDITIONS SEPTEMBER 30, 1996 AND DECEMBER 31, 1995
September 30, December 31,
1996 1995
------------- -------------
<S> <C> <C>
SHAREHOLDERS' EQUITY
Common Stock $4.17 PAR VALUE, 10,000,000 shares ................ 4,849,710 4,893,211
Authorized: 1,163,000 Shares in 1996 and
1,173,432 in 1995
Issued and Outstanding
Paid in Capital ................................................ 3,726,074 3,764,511
Unrealized Gain (Loss) on Investments Held For Sale ............ (12,174) 9,404
Retained Earnings .............................................. 467,590 36,050
------------- -------------
Total Shareholders' Equity ............................. 9,031,200 8,703,176
------------- -------------
Total Liabilities And Shareholders' Equity ............. $ 117,281,195 $ 88,743,914
============= =============
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
SVB FINANCIAL SERVICES, INC.
CONSOLIDATED STATEMENT OF INCOME
For The Periods Ended September 30,
For the Three Months Ended For the Nine Months Ended
--------------------------- ----------------------------
1996 1995 1996 1995
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
INTEREST INCOME
Interest on Loans .......................................... $1,819,401 $1,247,123 $4,858,393 $3,513,747
Interest on Securities Available For Sale .................. 75,530 52,943 225,538 139,628
Interest on Securities Held to Maturity .................... 202,270 250,978 678,979 743,444
Interest on Federal Funds Sold ............................. 77,455 73,053 174,329 140,684
Interest on Other Short Term Investments ................... 6,618 10,590 20,639 29,275
---------- ---------- ---------- ----------
Total Interest Income .................................. 2,181,274 1,634,687 5,957,878 4,566,778
---------- ---------- ---------- ----------
INTEREST EXPENSE
Interest on Deposits ....................................... 1,003,559 761,681 2,727,039 2,071,338
Interest on Federal Funds Purchased ........................ 0 0 0 170
---------- ---------- ---------- ----------
Total Interest Expense ................................. 1,003,559 761,681 2,727,039 2,071,508
---------- ---------- ---------- ----------
Net Interest Income .................................... 1,177,715 873,006 3,230,839 2,495,270
PROVISION FOR POSSIBLE LOAN LOSSES ............................ 92,000 56,000 237,000 146,000
---------- ---------- ---------- ----------
Net Interest Income After Provision
For Possible Loan Losses ......................... 1,085,715 817,006 2,993,839 2,349,270
OTHER INCOME
Service Charges on Deposit Accounts ........................ 42,086 31,412 121,695 84,473
Gain (Loss) on the Sale of Investment Securities ........... 0 0 (2,117) 2,336
Gain on the Sale of Loans .................................. 23,409 68,018 66,922 169,714
Other Income ............................................... 13,167 16,691 50,803 46,700
---------- ---------- ---------- ----------
Total Other Income ............................... 78,662 116,121 237,303 303,223
---------- ---------- ---------- ----------
<PAGE>
<CAPTION>
SVB FINANCIAL SERVICES, INC.
CONSOLIDATED STATEMENT OF INCOME
For The Periods Ended September 30,
For the Three Months Ended For the Nine Months Ended
--------------------------- ----------------------------
1996 1995 1996 1995
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
OTHER EXPENSE
Salaries and Employee Benefits ............................. 448,557 302,484 1,301,798 906,685
Occupancy Expense .......................................... 104,830 63,938 293,313 177,538
Equipment Expense .......................................... 62,119 44,327 176,772 127,250
Other Expense .............................................. 308,876 178,528 802,595 604,604
---------- ---------- ---------- ----------
Total Other Expense ................................ 924,382 589,277 2,574,478 1 ,816,077
---------- ---------- ---------- ----------
Net Income Before Income Taxes ........................ 239,995 343,850 656,664 836,416
Provision for Income Taxes ............................ 57,378 135,485 225,124 326,311
Net Income ............................................ $ 182,617 $ 208,365 $ 431,540 $ 510,105
========== ========== ========== ==========
NET INCOME PER SHARE .......................................... $ 0.16 $ 0.18 $ 0.37 $ 0.45
========== ========== ========== ==========
WEIGHTED AVERAGE SHARES OUTSTANDING ........................... 1,171,274 1,173,027 1,174,632 1,131,467
========== ========== ========== ==========
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
SVB FINANCIAL SERVICES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOW FOR SEPTEMBER 30, 1996 AND SEPTEMBER 30, 1995
1996 1995
------------ ------------
<S> <C> <C>
OPERATING ACTIVITIES
Net Income ................................................................. $ 431,540 $ 510,105
Adjustments to reconcile net income to
Net Cash for operating activities:
Provision for possible loan losses ................................... 237,000 146,000
Depreciation and amortization ........................................ 150,404 94,637
Amortization (accretion) of investment securities premium/discount ... (52,472) (181,446)
(Gains)/Losses on sales of investment securities, net ................ 2,117 (2,336)
Gains on sales of loans .............................................. (66,922) (169,714)
Increase in interest receivable ...................................... (137,934) (90,506)
Increase in other assets ............................................. (664,244) 163,790
Increase in accrued interest payable ................................. 41,494 28,282
Increase (decrease) in accrued expenses and other liabilities ........ 14,259 153,888
Increase (decrease) in unearned income ............................... (1,091) (9,708)
------------ ------------
Net Cash Provided by (used in) Operating Activities ......... (45,849) 642,992
INVESTING ACTIVITIES
Proceeds from sales of securities available for sale ....................... 1,994,043 490,909
Proceeds from maturities of securities
Available for Sale ................................................... 2,775,010 1,953,693
Held to Maturity ..................................................... 7,652,535 24,311,923
Purchases of investment securities
Available for Sale ................................................... (6,709,713) (2,746,928)
Held to maturity ..................................................... (7,371,789) (22,479,768)
Increase in loans .......................................................... (23,391,001) (8,609,090)
Capital expenditures ....................................................... (267,889) (152,545)
------------ ------------
Net Cash Used for Investing Activities ...................... (25,318,804) (7,231,806)
FINANCING ACTIVITIES
Net increase (decrease) in demand deposits ................................. 5,934,849 411,010
Net increase (decrease) in savings deposits ................................ 2,347,276 (1,150,706)
Net increase in money market deposits ...................................... 2,919,737 1,014,007
Net increase in time deposits ............................................. 16,798,348 7,758,372
Proceeds from the issuance of common stock, net ............................ -- 1,173,160
Decrease in common stock from non acceptance of exchange offer ............. (81,938) --
Net Cash Provided by Financing Activities ................... 27,918,272 9,205,843
Increase in Cash and Cash Equivalents, net .................................... 2,553,619 2,617,029
CASH AND CASH EQUIVALENTS, beginning of year .................................. 7,984,940 6,043,304
CASH AND CASH EQUIVALENTS, end of period ...................................... $ 10,538,559 $ 8,660,333
============ ============
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash paid during the year for interest ..................................... $ 2,685,545 $ 2,043,226
Cash paid during the year for income taxes ................................. $ 215,000 $ 60,000
============ ============
</TABLE>
<PAGE>
SVB FINANCIAL SERVICES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
SEPTEMBER 30, 1996 (UNAUDITED)
1. SVB Financial Services, Inc., (the "Company"), a bank holding company, was
incorporated on February 7, 1996 with authorized capital of 10,000,000 shares of
$4.17 par value common stock. On September 3, 1996, the Company acquired 100
percent of the shares of Somerset Valley Bank (the "Bank") by exchanging 6
shares of its Common Stock for each 5 shares of the Bank. This exchange has been
accounted for as a reorganization of entities under common control, similar to a
pooling of interests, which resulted in no changes to the underlying carrying
amounts of assets and liabilities.
The consolidated financial statements included herein have been prepared without
audit pursuant to the rules and regulations of the Securities and Exchange
Commission. Certain information and footnote disclosures normally included in
financial statements prepared in accordance with generally accepted accounting
principles have been omitted pursuant to such rules and regulations. The
accompanying condensed consolidated financial statements reflect all adjustments
which are, in the opinion of management, necessary to a fair statement of the
results for the interim periods presented. Such adjustments are of a normal
recurring nature. The results for the six months ended September 30, 1996 are
not necessarily indicative of the results that may be expected for the year
ended December 31, 1996.
The consolidated financial statements include the accounts of Somerset Valley
Bank. All significant inter-company accounts and transactions have been
eliminated.
2. Loans
At September 30, 1996 and December 31, 1995 the composition of outstanding loans
is summarized as follows:
<TABLE>
<CAPTION>
September 30, December 31,
1996 1995
---- ----
<S> <C> <C>
Secured by Real Estate:
Residential Mortgage .................................. $22,543,812 $21,466,489
Commercial Mortgage ................................... 25,604,839 15,700,266
Construction .......................................... 2,660,394 2,812,000
Commercial and Industrial ...................................... 16,762,539 12,554,205
Loans to Individuals for Automobiles ........................... 12,870,818 5,425,201
Other Loans to Individuals ..................................... 3,109,046 2,186,267
$83,551,448 $60,144,428
=========== ===========
</TABLE>
There were no loans restructured during 1996 or 1995. Loans past due 90 days or
more as of September 30, 1996 and still accruing totaled $290,940 and loans in a
non-accrual status totaled $41,099. There were no loans past due 90 days or more
or in a non-accrual status as of December 31, 1995.
<PAGE>
3. Allowance for Possible Loan Losses:
The allowance for possible loan losses is based on estimates and ultimate losses
may vary from the current estimates. These estimates are reviewed periodically
and as adjustments become necessary, they are reflected in operations in the
period in which they become known. An analysis of the allowance for possible
loan losses is as follows:
<TABLE>
<CAPTION>
September 30, December 31,
1996 1995
--------- ---------
<S> <C> <C>
Balance January 1, ....................... $ 527,019 $ 372,062
Provision charged to Operations .......... 237,000 206,000
Charge Offs .............................. (53,879) (51,043)
Recoveries ............................... 2,976 --
--------- ---------
Balance End of Period .................... $ 713,116 $ 527,019
========= =========
</TABLE>
<PAGE>
Item 2 - Management's Discussion and Analysis of Financial Conditions and
Results of Operations
Results of Operations
Three Months Ended September 30, 1996 and September 30, 1995
Net income for the first nine months of 1996 was $431,540, a decrease
of $78,565 or 15% from the same period last year. This net income represents
earnings per share of $ .37 in 1996 compared to $ .45 in 1995. Much of the
decline occurred during the first quarter of the year when the Company opened
its first branch office in Hillsborough Township and it experienced increases in
salary, occupancy, equipment and advertising expenses. Although net interest
income increased by $735,569 or 29% from last year, it was not enough to offset
the increase in the provision for loan losses of $91,000, the decline in non
interest income of $65,920 or the increase in non interest expenses of $693,261.
Net income for the third quarter of 1996 was $183,217, a decrease of
$25,000 or 12% from the same period last year. Income per share was $ .16 in
1996 compared to $ .18 in 1995. Net interest income increased by $304,709 but
was offset by a decline in other income of $36,589 and an increase in other
expense of $269,965.
A detailed discussion of the major components of net income follows:
Net Interest Income
Net interest income for the nine months ended September 30, 1996 was
$3,230,839, an increase of $735,569 or 29% from the same period last year. The
increase was a result of the growth in average earning assets from $73.6 million
in 1995 to $96.3 million in 1996. Loans made up most of this increase as average
loans were $70.8 million compared to $49.3 million in 1995. Loan growth occurred
in all loan categories, i.e., commercial, mortgage and consumer. The yield on
loans declined from 9.53% to 9.17% due to the lower average prime rate in 1996.
The overall yield on earning assets declined only 3 basis points to 8.27%. This
was a result of the percentage of loans to earnings assets improving from 67% in
1995 to 74% in 1996.
The overall cost of interest-bearing liabilities declined by 3 basis
points to 4.68% as certificates of deposit repriced to slightly lower levels in
1996 but the overall cost of funding earning assets rose from 3.77% to 3.79%.
This occurred because the percentage of earning assets supported by non interest
sources of funds (such as capital and demand deposits) declined from 20% in 1995
to 19% in 1996. This resulted in the net interest margin declining from 4.54% to
4.48% for the comparable periods.
Net interest income for the three month period increased $304,709 or
35% from the same period in 1995. This increase follows the same reasons as the
year to date increase mentioned above, most notably the increase in loans. Total
loans were $83,551,448 compared to $54,223,795 at September 30, 1995.
<PAGE>
Provision for Loan Losses
The provision for possible loan losses was $237,000 compared to
$146,000, an increase of $91,000 or 62% for the first nine months of 1996
compared to the same period in 1995. For the three month period ended September
30, 1996 the provision for possible loan losses was $92,000, an increase of
$36,000 or 64% from the same period last year. Although there has been an
increase in past due and non-accrual loans (see Asset Quality) the increase in
the provision is mostly related to the growth in outstanding loans rather than
to an overall decline in credit quality. Total loans have increased $23.4
million or 39% since year end 1995 and $5.8 million or 7% since June 30, 1996.
Other Income
Other income was $237,303 during the first nine months of 1996 compared
to $303,233 during the same period in 1995, a decline of $65,920 or 22%. The
decline was a result of $102,792 decline in gains on the sale of loans. The
Company is a preferred SBA lender and, as such, it originates SBA loans and
sells the government guaranteed portions in the secondary market while retaining
the servicing. It is important to note that SBA loans are not the primary focus
of the Company's loan business. The amount of gains recognized on SBA loans is
dependent on the volume of new SBA loans generated each quarter. The amounts can
vary greatly from quarter and from year to year.
Service charges on deposit accounts increased $37,222 on a year to date
basis in 1996 compared to 1995 due to the growth in commercial and consumer
checking accounts and an increase in the overdraft charge from $18.00 per check
to $20.00.
For the quarter end other income declined $36,859 or 32%. Again this
was entirely due to a reduction in gains on the sale of SBA loans and was offset
in part by the increase in service charges on deposit accounts as mentioned
above.
Other Expenses
Other expenses increased $693,261 or 38% for the first nine months of
1996 over the same period in 1995 and $269,965 or 46% for the third quarter of
1996 as compared to the same period in 1995.
Three events were responsible for both the year to date and the
quarters' increase in expenses. First, in February the Company opened its first
branch office in Hillsborough Township with five full time employees along with
additional occupancy, equipment and marketing expenses. Second, in July the
Company moved its back office Operations to additional office space above the
Hillsborough office. The additional expenses involved in the move as well as
increased occupancy expense added to expense in the third quarter. Third, the
Company's total assets grew from $88.7 million at year end to $117.2 million at
September 30, 1996, an increase of $28.5 million or 32%. This increase resulted
in increased deposit and loan accounts which increased many volume sensitive
expenses such as stationery and supplies, data processing, postage and many
other expenses. In addition, the Company had to add employees to its back office
operations as well as the Somerville banking office, in order to properly
service the increased volume.
<PAGE>
Financial Condition
September 30, 1996 compare to December 31, 1995
Total assets increased $28.5 million or 32% since December 31, 1995.
Loans made up the largest part of the increase growing $23.4 million. Investment
securities grew $1.7 million while cash and cash equivalents increased $2.5
million. These increases were funded by an increase in deposits of $28.0
million.
Total loans increased $23.4 million or 39% due to the significant
increase in loan demand. The Company's main emphasis in lending remains the
small to medium sized businesses in its market area. One of the reasons for the
significant loan growth is the apparent inability of the larger regional and
out-of-state banks to adequately service this segment of the market. The Company
also experienced significant growth in its loans to individuals for automobiles.
During 1995 the Company began actively seeking relationships with local
automobile dealerships for the purpose of financing consumer automobile loans.
As a result auto loans increased from $5.4 million at December 31, 1995 to $12.9
million at September 30, 1996.
With respect to the securities portfolio, the Company continues to
increase its available for sale securities in order to provide an additional
source of liquidity as well as flexibility in asset liability management. These
securities increase $1.9 million since December 31, 1995.
Deposits increased $28.0 million or 31% during 1996. All categories of
deposits showed significant growth most notably non interest-bearing demand
deposits which increase $5.1 million or 39.8%. This was mostly the result of
increased commercial checking accounts which is directly related to the increase
in commercial loans. Time deposits less than $100,000 increased $13.0 million.
The Company continues to aggressively price its retail time deposits in order to
attract new funds for loan demand.
Asset Quality
The Company had no non-performing loans as of December 31, 1995. At
September 30, 1996, the Company had loans past due over 90 days of $290,940 and
non-accrual loans totaled $41,099 for total non-performing loans of $332,039.
These non-performing loans represent .40% of total loans.
Allowance for Possible Loan Losses
The allowance for possible loan losses is maintained at a level
considered adequate to provide for potential loan losses. The level of the
allowance is based on management's evaluation of potential losses in the
portfolio, after consideration of risk characteristics of the loans and
prevailing and anticipated economic conditions. The allowance is increased by
provisions charged to expense and reduced by charge-offs, net of recoveries.
At September 30, 1996, the allowance for loans losses was $713,116 and
represents .85% of total loans and 215% of non-performing loans compared to an
allowance for loan losses at December 31, 1995 of $527,019 or .88% of total
loans. There were no non-performing loans at December 31, 1995.
Charge-offs for the first nine months of 1996 totaled $53,879 compared
to $51,043 at December 31, 1995.
<PAGE>
Liquidity
Cash and cash equivalents totaled $10,538,559 at September 30, 1996, an
increase of $2,553,619 since year end 1995.
Cash provided by financing activities was a negative $45,849, primarily
a result of increases in other assets and receivables.
Cash used in investing activities was $25,318,804. Almost all of this
was attributed to a net increase in loans of $23,391,001. The remainder was for
the purchase of investment securities especially securities available for sales
whose purchases totaled $6,709,713.
The sources of funds for investing activities came from financing
activities which totaled $27,918,272. Increases in time deposits made up the
majority of this total at $16,798,348 followed by increases in demand deposits
of $5,934,849.
In addition to cash and cash equivalents, the Company's primary
liquidity includes securities available for sale and securities held to maturity
that mature in one year or less. These totaled $23,357,000 inclusive of cash and
cash equivalents and represents 20% of total assets.
Capital Resources
Total Shareholders' Equity was $9,031,200 at September 30, 1996
compared to $8,703,176 at December 31, 1995.
Under FDIC Improvement Act of 1991, banks are required to maintain a
minimum ratio of total capital to risk based assets of 8% of which at least 4%
must be in the form of Tier I Capital (primarily Shareholders' Equity). The
following are the Company's capital ratios at the end of the periods indicated.
<TABLE>
<CAPTION>
September 30, December 31,
1996 1995
---- ----
<S> <C> <C>
Tier I Capital to Risk Weighted Assets 10.24% 13.46%
Total Capital to Risk Weighted Assets 11.07% 14.28%
</TABLE>
<PAGE>
Part II-Other Information
Item 1 - Legal Proceedings
The Company is party in the ordinary course of business to
litigation involving collection matters, contract claims and
other miscellaneous causes of action arising from its
business. Management does not consider that such proceedings
depart from usual routine litigation and, in its judgment, the
Company's financial position and results of operations will
not be affected materially by such proceedings.
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
(a) Exhibits
3(i) Articles of Incorporation
Certificate of Incorporation of the Company is incorporated by
reference to the Company's Registration Statement on Form SB-2
File Number 333-12305 Amendment No. 2, Filed November 4, 1996.
3(ii) Bylaws
Bylaws of the Company are incorporated by reference to the
Company's Registration Statement on Form SB-2 File No.
333-12305 Amendment No. 2, Filed November 4, 1996.
(27) Financial Date Schedule
(b) Reports on Form 8-K
A Form 8-K was filed on October 10, 1996 under Item 5 "Other
Events" reporting the completion of the exchange of shares
between Somerset Valley Bank and SVB Financial Services, Inc.
on September 3, 1996.
<PAGE>
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.
SVB FINANCIAL SERVICES, INC.
(Registrant)
Dated: November 14, 1996 By: /s/Keith B. McCarthy
--------------------
Keith B. McCarthy
Executive Vice President and
Treasurer
<TABLE> <S> <C>
<ARTICLE> 9
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> SEP-30-1996
<CASH> 5,796,555
<INT-BEARING-DEPOSITS> 0
<FED-FUNDS-SOLD> 3,950,000
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 6,819,775
<INVESTMENTS-CARRYING> 14,313,141
<INVESTMENTS-MARKET> 14,649,141
<LOANS> 83,551,448
<ALLOWANCE> (713,116)
<TOTAL-ASSETS> 117,281,195
<DEPOSITS> 107,680,002
<SHORT-TERM> 0
<LIABILITIES-OTHER> 569,993
<LONG-TERM> 0
0
0
<COMMON> 4,849,710
<OTHER-SE> 4,181,490
<TOTAL-LIABILITIES-AND-EQUITY> 117,281,195
<INTEREST-LOAN> 4,858,393
<INTEREST-INVEST> 904,517
<INTEREST-OTHER> 194,968
<INTEREST-TOTAL> 5,957,878
<INTEREST-DEPOSIT> 2,727,039
<INTEREST-EXPENSE> 2,727,039
<INTEREST-INCOME-NET> 3,230,839
<LOAN-LOSSES> 237,000
<SECURITIES-GAINS> (2,117)
<EXPENSE-OTHER> 2,574,478
<INCOME-PRETAX> 656,664
<INCOME-PRE-EXTRAORDINARY> 656,664
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 431,540
<EPS-PRIMARY> .45
<EPS-DILUTED> .45
<YIELD-ACTUAL> 0
<LOANS-NON> 41,099
<LOANS-PAST> 290,940
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 527,014
<CHARGE-OFFS> 53,879
<RECOVERIES> 2,976
<ALLOWANCE-CLOSE> 713,116
<ALLOWANCE-DOMESTIC> (1)
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
