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 June 30, 1997
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, 1997 there were 1,369,610 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
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.
STATEMENTS OF CONDITION June 30, December 31,
June 30, 1997 and December 31, 1996 1997 1996
------------- -------------
<S> <C> <C>
ASSETS
Cash & Due from Banks ............................ $ 7,548,738 $ 4,914,698
Federal Funds Sold ............................... 5,400,000 5,450,000
Other Short Term Investments ..................... 820,203 1,763,478
------------- -------------
Total Cash and Cash Equivalents .................. 13,768,941 12,128,176
------------- -------------
Securities
Available for Sale, at Market Value ........... 12,852,848 8,726,878
Held to Maturity .............................. 14,937,333 13,989,481
------------- -------------
Total Securities ................................. 27,790,181 22,716,359
------------- -------------
Loans ............................................ 96,309,028 87,855,063
Allowance for Possible Loan Losses ............ (883,322) (783,366)
Unearned Income ............................... (75,708) (79,414)
------------- -------------
Net Loans ........................................ 95,349,998 86,992,283
------------- -------------
Premises & Equipment, Net ........................ 1,152,708 1,066,109
Other Real Estate ................................ 304,700 304,700
Organization Costs, Net .......................... 58,592 0
Other Assets ..................................... 1,929,529 1,787,840
------------- -------------
Total Assets ..................................... $ 140,354,649 $ 124,995,467
============= =============
LIABILITIES & SHAREHOLDERS' EQUITY
LIABILITIES
Deposits
Demand
Non-interest Bearing .......................... $ 22,965,314 $ 21,420,923
NOW Accounts .................................. 9,650,886 6,439,160
Savings .......................................... 7,876,884 7,675,671
Money Market Accounts ............................ 18,022,125 15,710,515
Time
Greater than $100,000 ......................... 7,355,787 6,211,335
Less than $100,000 ............................ 61,608,608 55,063,786
------------- -------------
Total Deposits ................................... 127,479,604 112,521,390
------------- -------------
Accrued Expenses & Other Liabilities ............. 463,811 564,418
------------- -------------
Total Liabilities ................................ 127,943,415 113,085,808
------------- -------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
SVB FINANCIAL SERVICES, INC.
STATEMENTS OF CONDITION June 30, December 31,
June 30, 1997 and December 31, 1996 1997 1996
------------- -------------
<S> <C> <C>
Commitments and Contingencies
SHAREHOLDERS' EQUITY
Common Stock $4.17 Par Value: 10,000,000 ......... 5,711,274 5,698,401
Shares Authorized; 1,369,610 Shares in 1997 and
1,366,523 Shares in 1996 Issued and Outstanding
Additional Paid-in Capital ....................... 5,458,898 5,447,009
Retained Earnings ................................ 1,238,453 756,135
Unrealized Gain on Securities Available for Sale,
Net of Income Taxes ........................... 2,609 8,114
------------- -------------
Total Shareholders' Equity ....................... 12,411,234 11,909,659
------------- -------------
Total Liabilities and Shareholders' Equity ....... $ 140,354,649 $ 124,995,467
============= =============
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
SVB FINANCIAL SERVICES, INC.
CONSOLIDATED STATEMENTS OF INCOME For the Three Months Ended For the Six Months Ended
For the Period Ended June 30, 1997 and 1996 1997 1996 1997 1996
--------------------------- ---------------------------
<S> <C> <C> <C> <C>
INTEREST INCOME
Interest on Loans .......................................... $ 2,134,406 $ 1,632,388 $ 4,138,695 $ 3,038,992
Interest on Securities Available for Sale .................. 194,660 69,120 340,314 150,008
Interest on Securities Held to Maturity .................... 212,646 254,123 435,758 476,709
Interest on Other Short Term Investments ................... 8,120 4,604 28,651 14,021
Interest on Federal Funds Sold ............................. 70,630 44,058 143,799 96,874
----------- ----------- ----------- -----------
Total Interest Income ...................................... 2,620,462 2,004,293 5,087,217 3,776,604
----------- ----------- ----------- -----------
INTEREST EXPENSE
Interest on Deposits ....................................... 1,196,057 909,182 2,302,455 1,723,480
----------- ----------- ----------- -----------
Total Interest Expense ..................................... 1,196,057 909,182 2,302,455 1,723,480
----------- ----------- ----------- -----------
Net Interest Income ........................................ 1,424,405 1,095,111 2,784,762 2,053,124
PROVISION FOR POSSIBLE LOAN LOSSES ......................... 75,000 85,000 150,000 145,000
----------- ----------- ----------- -----------
Net Interest Income after Provision For Possible Loan Losses 1,349,405 1,010,111 2,634,762 1,908,124
----------- ----------- ----------- -----------
OTHER INCOME
Service Charges on Deposit Accounts ........................ 54,344 42,841 106,894 79,009
(Loss) on the Sale of Securities Available for Sale ........ 0 (2,117) 0 (2,117)
Gain on the Sale of Loans .................................. 27,353 39,410 54,108 43,513
Other Income ............................................... 27,038 17,852 58,011 37,636
----------- ----------- ----------- -----------
Total Other Income ......................................... 108,735 97,986 219,013 158,041
----------- ----------- ----------- -----------
OTHER EXPENSE
Salaries and Employee Benefits ............................. 513,717 430,712 1,034,433 853,241
Occupancy Expense .......................................... 109,596 100,114 222,003 188,483
Equipment Expense .......................................... 73,039 56,819 149,033 114,653
Other Expenses ............................................. 341,971 235,734 640,969 493,719
----------- ----------- ----------- -----------
Total Other Expense ........................................ 1,038,323 823,379 2,046,438 1,650,096
----------- ----------- ----------- -----------
Net Income Before Provision for Income Taxes ............... 419,817 284,718 807,337 416,069
Provision for Income Taxes ................................. 168,991 114,456 325,018 167,746
----------- ----------- ----------- -----------
NET INCOME ................................................. $ 250,826 $ 170,262 $ 482,319 $ 248,323
=========== =========== =========== ===========
NET INCOME PER SHARE ....................................... $ 0.18 $ 0.14 $ 0.35 $ 0.21
WEIGHTED AVERAGE SHARES OUTSTANDING ........................ 1,369,610 1,174,394 1,369,373 1,173,913
=========== =========== =========== ===========
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
SVB FINANCIAL SERVICES, INC.
STATEMENTS OF CASH FLOW
For the Period Ended June 30, 1997 1996
------------ ------------
<S> <C> <C>
OPERATING ACTIVITIES
Net Income ................................................... $ 482,319 $ 248,323
Adjustments to Reconcile Net Income to
Net Cash Provided by Operating Activities:
Provision for Possible Loan Losses ........................... 150,000 145,000
Depreciation and Amortization ................................ 139,213 118,103
(Accretion) of Securities Premium/Discount ................... (10,374) (48,404)
(Increase) in Other Assets ................................... (207,042) (603,728)
(Decrease) Increase in Accrued Expenses and Other Liabilities (97,771) 32,156
(Decrease) Increase in Unearned Income ....................... (3,706) 11,128
------------ ------------
Net Cash Provided By Operating Activities .................... 452,639 (97,422)
------------ ------------
INVESTING ACTIVITIES
Proceeds from Sales of Securities Available for Sale ......... 0 1,996,160
Proceeds from Maturities of Securities
Available for Sale ........................................ 364,272 2,498,833
Held to Maturity .......................................... 6,291,457 4,596,894
Purchases of Securities
Available for Sale ........................................ (4,497,188) (3,467,617)
Held to Maturity .......................................... (7,230,331) (6,121,593)
Increase in Loans ............................................ (8,504,009) (17,175,074)
Capital Expenditures ......................................... (219,051) (174,143)
------------ ------------
Net Cash Used for Investing Activities ....................... (13,794,850) (17,846,540)
------------ ------------
FINANCING ACTIVITIES
Net Increase in Demand Deposits .............................. 4,756,117 5,948,327
Net Increase in Savings Deposits ............................. 201,213 1,242,663
Net Increase in Money Market Deposits ........................ 2,311,610 957,244
Net Increase in Time Deposits ................................ 7,689,274 12,990,712
Increase in Common Stock from Non Acceptance of Exchange Offer 24,762 10,000
------------ ------------
Net Cash Provided by Financing Activities .................... 14,982,976 21,148,946
------------ ------------
Increase in Cash and Cash Equivalents, Net ................... 1,640,765 3,204,984
Cash and Cash Equivalents, Beginning of Year ................. 12,128,176 7,984,940
------------ ------------
Cash and Cash Equivalents, End of Period ..................... $ 13,768,941 $ 11,189,924
============ ============
SUPPLEMENTAL DISCLOSURE OF CASH FLOW
INFORMATION
Cash Paid During the Year for Interest ....................... $ 2,253,966 $ 1,689,181
============ ============
Cash Paid During the Year for Federal Income Taxes ........... $ 427,562 $ 155,000
============ ============
</TABLE>
<PAGE>
SVB FINANCIAL SERVICES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
June 30, 1997 (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 an 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. These consolidated condensed
financial statements should be read in conjunction with the audited financial
statements and the notes thereto. The results for the six months ended June 30,
1997 are not necessarily indicative of the results that may be expected for the
year ended December 31, 1997.
The consolidated financial statements include the accounts of Somerset
Valley Bank. All significant inter-company accounts and transactions have been
eliminated.
2. Loans
At June 30, 1997 and December 31, 1996 the composition of outstanding
loans is summarized as follows:
<TABLE>
<CAPTION>
June 30, 1997 December 31, 1996
----------- -----------
<S> <C> <C>
Secured by Real Estate:
Residential Mortgage .................... $32,820,812 $28,023,269
Commercial Mortgage ..................... 26,033,648 23,690,659
Construction ............................ 3,360,627 2,289,233
Commercial and Industrial .................. 16,153,931 17,135,417
Loans to Individuals ....................... 5,124,775 3,456,425
Loans to Individuals for Automobiles ....... 12,660,156 13,260,060
Other Loans to Individuals ................. 155,079 --
----------- -----------
$96,309,028 $87,855,063
=========== ===========
</TABLE>
There were no loans restructured during 1997 or 1996. Loans past due 90
days or more and still accruing totaled $53,031 at June 30, 1997 and $20,600 at
December 31, 1996. Loans in a non-accrual status totaled $226,194 at June 30,
1997 and $24,384 at December 31, 1996.
<PAGE>
SVB FINANCIAL SERVICES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
June 30, 1997 (UNAUDITED)
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>
June 30, December 31,
1997 1996
<S> <C> <C>
Balance January 1, ....................... $ 783,366 $ 527,019
Provision charged to Operations .......... 150,000 309,500
Charge Offs .............................. (53,858) (57,593)
Recoveries ............................... 3,814 4,440
--------- ---------
Balance End of Period .................... $ 883,322 $ 783,366
========= =========
</TABLE>
4. New Accounting Pronouncement
The FASB has issued Statement of Financial Accounting Standards No.
128, Earnings Per Share, which is effective for financial statements issued
after December 15, 1997. Early adoption of the new standard is not permitted.
The new standard eliminates primary and fully diluted earnings per share and
requires presentation of basic and diluted earnings per share together with
disclosure of how the per share amounts were computed. The adoption of this new
standard is not expected to have a material impact on the disclosure of earnings
per share in the financial statements.
ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITIONS
AND RESULTS OF OPERATIONS
Net income for the first six months of 1997 was $482,319, an increase
of $233,996 or 94% as compared to the same period in 1996. Earnings per share
were $.35 in 1997 as compared to $.21 in 1996. Net income for the second quarter
of 1997 was $250,826 which was $19,333 higher than the first quarter of 1997 and
$80,564 or 47% higher than the second quarter of 1996. An increase in net
interest income, more fully described below, of $731,638 was the chief
contributor to the increase in earnings. It is important to note that the first
half of 1996 was impacted by an increase in operating expenses related to the
opening of the Company's Hillsborough office.
A detailed discussion of the major components of net income follows:
Net Interest Income
Net interest income for the first half of 1997 was $2,784,762 compared
to $2,053,124 in 1996, an increase of $731,638 or 36%.
<PAGE>
Almost all of the increase can be attributed to an increase in average
earnings assets. Average earnings assets for the first half of 1997 were $124.2
million an increase of $32.5 million or 36% from the first half of 1996. Loans
accounted for almost 74% of this increase as loans averaged $91.9 million during
the six months. The increase in loan balances caused interest income to increase
$1.2 million while a decline in the yield on loans reduced interest income $54.0
thousand. The decline in the yield on loans was due to a change in the mix of
the loan portfolio, in particular, consumer automobile loans purchased from auto
dealerships at rates lower than the Company's overall return.
Overall, interest income increased $1.3 million. Almost all of this
amount was due to the increase an average balances. The yield on earning assets
was 8.26% for 1997 and a 8.31% for 1996.
The overall cost of interest-bearing liabilities declined from 4.72% to
4.69% as a result of lower rates being paid on maturing certificates of deposit.
This decline combined with an increase in non-interest sources of funds mostly
capital and demand deposits of $5.3 million caused the cost of funding earning
assets to drop from 3.79% to 3.74%. The combination of the decrease in the yield
on earning assets and the decrease in the cost to fund earning assets resulted
in a net interest margin of 4.52% for both years.
Provision for Loan Possible Losses
The provision for possible loan losses was $150,000 in the first half
of 1997 as compared to $145,000 in the first half of 1996. 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 gross loans have
increased $8.5 million or 10% since December 31, 1996 and $18.6 million or 24%
since June 30, 1996.
Other Income
During the first half of 1997, other income increased $60,972 or 39%
over the same period in 1996. Gains on the sale of loans accounted for $10,595
of the increase. 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. 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 to quarter and from year to year.
Service charges on deposit accounts increased $27,885 or 35% from the
same period last year. The growth in the number of commercial and consumer
checking accounts resulted in increased overdraft, account maintenance and wire
transfer fees.
Other income increased $20,375 or 54% as a result of increased Letters
of Credit fees and servicing fees for SBA loans.
Other Expense
Other expenses for the six months ended June 30, 1997 increased
$396,342 or 24% from the same period in 1996. It is important to note that,
during the past twelve months, the assets of the Company grew $30.2 million or
27%. In 1996, the Company opened its first branch office in Hillsborough
Township during the first quarter and moved its back-office operations to
<PAGE>
additional space it was leasing in Hillsborough during the second quarter. The
full impact of these two items was not felt in the first half of 1996. Also, the
Company plans to open its second branch in Bridgewater Township early in the
third quarter of 1997. Because of the 27% growth in assets and the plans for the
Bridgewater office, the Company has had to hire additional personnel to better
service its customer base. These additions combined with normal salary increases
and the additions to the staff caused salary and benefits expense to increase
$181,192 or 21% from last year. Additional rent on the Hillsborough location and
depreciation on improved facilities resulted in a $33,520 or 18% increase in
occupancy expenses. The Company has also made an investment in a new computer
network in order to improve efficiency and remain current with technology. These
purchases as well as other purchases of equipment for new employees increased
equipment expense $34,380 or 30% from last year. Other expenses increased from
last year $147,250 or 30%. Much of this increase was related to the growth of
the Company which affected many areas, but especially examination and data
processing costs. Costs of $16,160 were incurred to maintain the Company's other
real estate owned. There was a decline in marketing and business development
costs because last year's expenses included the grand opening costs for the
Hillsborough office, but these expenses will increase in the third quarter of
1997 with the opening of the Bridgewater branch. Directors' fees expense
increased by $28,781.
Financial Condition
June 30, 1997 compared to December 31, 1996
Total assets increased $15.4 million or 12% from December 31, 1996.
Loans accounted for most of the increase. Total loans grew $8.5 million. Growth
of $8.2 million occurred in loans secured by real estate with the biggest
increase of $4.8 million in the residential mortgage loan portfolio. Loans to
individuals for automobiles, which had experienced significant growth over the
past two years, declined by $1.0 million. The current interest rates earned on
these loans in relation to competition has caused the Company to not be as
aggressive in generating new automobile loans.
Deposits increased $15.0 million or 13% during the first half. All
deposit categories increased with the largest increase of $6.5 million in the
time deposits less than $100,000 category.
Investment securities increased $5.1 million.
Asset Quality
Loans past due 90 days or more and still accruing totaled $53,031 as of
June 30, 1997 and $20,600 at December 31, 1996 and represented .06% and .02% of
total loans as of June 30, 1997 and December 31, 1996, respectively.
Loans in a non-accrual status totaled $226,194 at June 30, 1997 and
$24,384 at December 31, 1996 and represented .23% and .03% of total loans as of
June 30, 1997 and December 31, 1996, respectively.
The Company had other real estate owned of $304,700 at June 30, 1997
and December 31, 1996.
<PAGE>
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 June 30, 1997, the allowance for loan losses was $883,322 and
represented .92% of total loans and 316% of non-performing loans compared to an
allowance for loan losses at December 31, 1996 of $783,366 or .89% of total
loans and 1,741% of non-performing loans at December 31, 1996.
Charge-offs for the first six months of 1997 totaled $53,858 compared
to $51,043 for the year ended December 31, 1996.
Capital Resources
Total Shareholders' Equity was $12,411,234 at June 30, 1997 compared to
$11,909,659 at December 31, 1996.
Under the 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>
June 30, December 31,
1997 1996
<S> <C> <C>
Tier I Capital to Risk Weighted Assets ........... 12.06% 12.56%
Total Capital to Risk Weighted Assets ............ 12.93% 13.40%
Leverage Ratio ................................... 9.08% 9.58%
</TABLE>
Liquidity
Cash and cash equivalents totaled $13.8 at June 30, 1997 an increase of
$1.6 million.
The increase in Cash and Cash Equivalents was primarily attributable to
an increase in deposits which contributed to an increase in cash used for
financing activities of $15.0 million. Time deposits experienced the largest
increase for the six month period of $7.7 million.
The increase in financing activities was offset by an increase in
investing activities of $13.8 million. The investing activities for the six
months of 1997 were in the form of loans ($8.5 million) and purchases of
securities ($11.7 million). Security purchases were offset by security
maturities of $6.6 million.
<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 Data Schedule
(b) Reports on Form 8-K
A report on Form 8-K was filed during the second quarter of
1997 under Item 4 "Change in Registrant's Certifying
Accountants."
<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: August 8, 1997 By:/s/Keith B. McCarthy
--------------------
Keith B. McCarthy
Executive Vice President
Chief Accounting Officer
<TABLE> <S> <C>
<ARTICLE> 9
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> JUN-30-1997
<CASH> 7,548,738
<INT-BEARING-DEPOSITS> 0
<FED-FUNDS-SOLD> 5,400,000
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 12,852,848
<INVESTMENTS-CARRYING> 14,937,333
<INVESTMENTS-MARKET> 0
<LOANS> 96,309,028
<ALLOWANCE> (883,322)
<TOTAL-ASSETS> 140,354,649
<DEPOSITS> 127,479,604
<SHORT-TERM> 0
<LIABILITIES-OTHER> 463,811
<LONG-TERM> 0
0
0
<COMMON> 5,711,274
<OTHER-SE> 6,699,960
<TOTAL-LIABILITIES-AND-EQUITY> 140,354,649
<INTEREST-LOAN> 4,138,695
<INTEREST-INVEST> 776,072
<INTEREST-OTHER> 172,450
<INTEREST-TOTAL> 5,087,217
<INTEREST-DEPOSIT> 2,302,455
<INTEREST-EXPENSE> 2,302,455
<INTEREST-INCOME-NET> 2,784,762
<LOAN-LOSSES> 150,000
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 2,046,438
<INCOME-PRETAX> 807,337
<INCOME-PRE-EXTRAORDINARY> 482,319
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 482,319
<EPS-PRIMARY> .35
<EPS-DILUTED> .35
<YIELD-ACTUAL> 4.52
<LOANS-NON> 226,194
<LOANS-PAST> 53,031
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 783,366
<CHARGE-OFFS> (53,858)
<RECOVERIES> 3,814
<ALLOWANCE-CLOSE> 883,322
<ALLOWANCE-DOMESTIC> 0
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
