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, 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
<PAGE>
As of September 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 September 30, December 31,
September 30, 1997 and December 31, 1996 1997 1996
------------- -------------
<S> <C> <C>
ASSETS
Cash & Due from Banks ............................ $ 5,516,428 $ 4,914,698
Federal Funds Sold ............................... 6,775,000 5,450,000
Other Short Term Investments ..................... 1,714,410 1,763,478
------------- -------------
Total Cash and Cash Equivalents .................. 14,005,838 12,128,176
------------- -------------
Securities
Available for Sale, at Market Value ........... 13,841,241 8,726,878
Held to Maturity .............................. 17,812,077 13,989,481
------------- -------------
Total Securities ................................. 31,653,318 22,716,359
------------- -------------
Loans ............................................ 96,213,217 87,855,063
Allowance for Possible Loan Losses ............ (938,037) (783,366)
Unearned Income ............................... (88,876) (79,414)
------------- -------------
Net Loans ........................................ 95,186,304 86,992,283
------------- -------------
Premises & Equipment, Net ........................ 1,646,406 1,066,109
Other Real Estate ................................ 0 304,700
Other Assets ..................................... 2,330,936 1,787,840
------------- -------------
Total Assets ..................................... $ 144,822,802 $ 124,995,467
============= =============
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
SVB FINANCIAL SERVICES, INC.
STATEMENTS OF CONDITION September 30, December 31,
September 30, 1997 and December 31, 1996 1997 1996
------------- -------------
<S> <C> <C>
LIABILITIES & SHAREHOLDERS' EQUITY
LIABILITIES
Deposits
Demand
Non-interest Bearing .......................... $ 22,415,015 $ 21,420,923
NOW Accounts .................................. 10,351,469 6,439,160
Savings .......................................... 9,193,384 7,675,671
Money Market Accounts ............................ 19,376,978 15,710,515
Time
Greater than $100,000 ......................... 8,166,996 6,211,335
Less than $100,000 ............................ 61,641,081 55,063,786
------------- -------------
Total Deposits ................................... 131,144,923 112,521,390
------------- -------------
Obligation Under Capital Lease ................... 445,000 0
Accrued Expenses & Other Liabilities ............. 518,956 564,418
------------- -------------
Total Liabilities ................................ 132,108,879 113,085,808
------------- -------------
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 ................................ 1,519,806 756,135
Unrealized Gain on Investments Available for Sale 23,945 8,114
------------- -------------
Total Shareholders' Equity ....................... 12,713,923 11,909,659
------------- -------------
Total Liabilities and Shareholders' Equity ....... $ 144,822,802 $ 124,995,467
============= =============
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
SVB FINANCIAL SERVICES, INC.
CONSOLIDATED STATEMENTS OF INCOME For the Three Months Ended For the Nine Months Ended
For the Period Ended September 30, 1997 and 1996 1997 1996 1997 1996
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
INTEREST INCOME
Interest on Loans .......................................... $ 2,205,896 $ 1,819,401 $ 6,344,591 $ 4,858,393
Interest on Securities Available for Sale .................. 204,980 75,530 545,294 225,538
Interest on Securities Held to Maturity .................... 261,357 202,270 697,115 678,979
Interest on Other Short Term Investments ................... 16,630 6,618 45,281 20,639
Interest on Federal Funds Sold ............................. 87,147 77,455 230,946 174,329
----------- ----------- ----------- -----------
Total Interest Income ...................................... 2,776,010 2,181,274 7,863,227 5,957,878
----------- ----------- ----------- -----------
INTEREST EXPENSE
Interest on Deposits ....................................... 1,269,384 1,003,559 3,571,839 2,727,039
Interest on Obligation Under Capital Lease ................. 4,181 0 4,181 0
----------- ----------- ----------- -----------
Total Interest Expense ..................................... 1,273,565 1,003,559 3,576,020 2,727,039
----------- ----------- ----------- -----------
Net Interest Income ........................................ 1,502,445 1,177,715 4,287,207 3,230,839
PROVISION FOR POSSIBLE LOAN LOSSES ......................... 65,000 92,000 215,000 237,000
----------- ----------- ----------- -----------
Net Interest Income after Provision For Possible Loan Losses 1,437,445 1,085,715 4,072,207 2,993,839
----------- ----------- ----------- -----------
OTHER INCOME
Service Charges on Deposit Accounts ........................ 60,907 42,686 167,801 121,695
(Loss) on the Sale of Securities Available for Sale ....... 0 0 0 (2,117)
Gain on the Sale of Loans ................................. 44,485 23,409 98,593 66,922
Other Income ............................................... 22,175 13,167 80,186 50,803
----------- ----------- ----------- -----------
Total Other Income ......................................... 127,567 79,262 346,580 237,303
----------- ----------- ----------- -----------
OTHER EXPENSE
Salaries and Employee Benefits ............................. 557,172 448,557 1,591,605 1,301,798
Occupancy Expense .......................................... 121,082 104,830 343,085 293,313
Equipment Expense .......................................... 76,386 62,119 225,419 176,772
Other Expenses ............................................. 338,864 243,736 979,833 737,455
----------- ----------- ----------- -----------
Total Other Expense ........................................ 1,093,504 859,242 3,139,942 2,509,338
----------- ----------- ----------- -----------
Net Income Before Provision for Income Taxes ............... 471,508 305,735 1,278,845 721,804
Provision for Income Taxes ................................. 190,156 122,518 515,174 290,264
----------- ----------- ----------- -----------
NET INCOME ................................................. $ 281,352 $ 183,217 $ 763,671 $ 431,540
=========== =========== =========== ===========
NET INCOME PER SHARE ....................................... $ 0.21 $ 0.16 $ 0.56 $ 0.37
=========== =========== =========== ===========
WEIGHTED AVERAGE SHARES OUTSTANDING ........................ 1,369,610 1,171,274 1,369,452 1,174,632
=========== =========== =========== ===========
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
SVB FINANCIAL SERVICES, INC.
STATEMENTS OF CASH FLOW
For the Period Ended September 30, 1997 1996
------------ ------------
<S> <C> <C>
OPERATING ACTIVITIES
Net Income ............................................................... $ 763,671 $ 431,540
Adjustments to Reconcile Net Income to
Net Cash Provided by Operating Activities:
Provision for Possible Loan Losses ....................................... 215,000 237,000
Depreciation and Amortization ............................................ 215,202 150,404
(Accretion) of Securities Premium/Discount ............................... (14,871) (52,472)
(Increase) in Other Assets ............................................... (553,237) (802,178)
(Decrease) Increase in Accrued Expenses and Other Liabilities ............ (53,618) 55,753
Increase (Decrease) in Unearned Income ................................... 9,462 (1,091)
------------ ------------
Net Cash Provided By Operating Activities ................................ 581,609 18,956
------------ ------------
INVESTING ACTIVITIES
Proceeds from Sales of Securities Available for Sale ..................... 0 1,996,160
Proceeds from Maturities of Securities
Available for Sale .................................................... 2,149,985 2,775,010
Held to Maturity ...................................................... 8,424,262 7,652,535
Purchases of Securities
Available for Sale .................................................... (7,236,392) (6,709,713)
Held to Maturity ...................................................... (12,235,956) (7,371,789)
(Increase) in Loans ...................................................... (8,418,483) (23,457,923)
Decrease in Other Real Estate ............................................ 304,700 0
Capital Expenditures ..................................................... (785,358) (267,889)
------------ ------------
Net Cash Used for Investing Activities ................................... (17,797,242) (25,383,609)
------------ ------------
FINANCING ACTIVITIES
Net Increase in Demand Deposits .......................................... 4,906,401 5,934,849
Net Increase in Savings Deposits ......................................... 1,517,713 2,347,276
Net Increase in Money Market Deposits .................................... 3,666,463 2,919,737
Net Increase in Time Deposits ............................................ 8,532,956 16,798,348
Increase in Obligation Under Capital Lease................................ 445,000 0
Increase (Decrease) in Common Stock from late acceptance of exchange offer 24,762 (81,938)
------------ ------------
Net Cash Provided by Financing Activities ................................ 19,093,295 27,918,272
------------ ------------
Increase in Cash and Cash Equivalents, Net ............................... 1,877,662 2,553,619
Cash and Cash Equivalents, Beginning of Year ............................. 12,128,176 7,984,940
------------ ------------
Cash and Cash Equivalents, End of Period ................................. $ 14,005,838 $ 10,538,559
============ ============
SUPPLEMENTAL DISCLOSURE OF CASH FLOW
INFORMATION
Cash Paid During the Year for Interest ................................... $ 3,504,910 $ 2,685,545
============ ============
Cash Paid During the Year for Federal Income Taxes ....................... $ 577,562 $ 240,000
============ ============
</TABLE>
<PAGE>
SVB FINANCIAL SERVICES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
September 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 nine months ended
September 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 September 30, 1997 and December 31, 1996 the composition of
outstanding loans is summarized as follows:
<TABLE>
<CAPTION>
September 30, December 31,
1997 1996
----------- -----------
<S> <C> <C>
Secured by Real Estate:
Residential Mortgage ............ $31,760,723 $28,023,269
Commercial Mortgage ............. 27,374,148 23,690,659
Construction .................... 3,523,987 2,289,233
Commercial and Industrial .......... 15,769,573 17,135,417
Loans to Individuals ............... 5,056,156 3,456,425
Loans to Individuals for Automobiles 12,645,385 13,260,060
Other Loans to Individuals ......... 83,245 --
----------- -----------
$96,213,217 $87,855,063
=========== ===========
</TABLE>
There were no loans restructured during 1997 or 1996. Loans past due 90
days or more and still accruing totaled $56,127 at September 30, 1997 and
$20,600 at December 31, 1996. Loans in a non-accrual status totaled $192,412 at
September 30, 1997 and $24,384 at December 31, 1996.
<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,
1997 1996
--------- ---------
<S> <C> <C>
Balance January 1, ............ $ 783,366 $ 527,019
Provision charged to Operations 215,000 309,500
Charge Offs ................... (64,606) (57,593)
Recoveries .................... 4,277 4,440
--------- ---------
Balance End of Period ......... $ 938,037 $ 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 nine months of 1997 was $763,671, an increase
of $332,131 or 77% as compared to the same period in 1996. Earnings per share
were $.56 in 1997 as compared to $.37 in 1996. Net income for the third quarter
of 1997 was $281,352 which was $30,526 higher than the second quarter of 1997
and $98,135 or 54% higher than the third quarter of 1996. An increase in net
interest income, more fully described below, of $1.1 million was the chief
contributor to the increase in earnings.
A detailed discussion of the major components of net income follows:
Net Interest Income
Net interest income for the first nine months of 1997 was $4,287,207
compared to $3,230,839 in 1996, an increase of $1,056,368 or 33%.
<PAGE>
Almost all of the increase can be attributed to an increase in average
earnings assets. Average earnings assets for the first nine months of 1997 were
$127.2 million an increase of $30.9 million or 32% from the first nine months of
1996. Loans accounted for almost 72% of this increase as loans averaged $93.2
million during the nine months. The increase in loan balances caused interest
income to increase $1.5 million while a decline in the yield on loans reduced
interest income $35.6 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 $1.9 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 8.27% for 1996.
The overall cost of interest-bearing liabilities increased slightly
from 4.68% to 4.70%. The Company had several deposit promotions during the third
quarter of 1997 to help introduce the opening of their second branch in
Bridgewater Township. This increase was offset with an increase in non-interest
sources of funds (capital and demand deposits) of $8.5 million which helped the
cost of funding earning assets to drop from 3.79% to 3.76%. 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 4.50% for 1997 and 4.48% for
1996.
Provision for Loan Possible Losses
The provision for possible loan losses was $215,000 in the first nine
months of 1997 as compared to $237,000 in the first nine months of 1996.
Although there has been an increase in past due and non-accrual loans (see Asset
Quality), the decrease in the provision is mostly related to the slowdown in
growth of outstanding loans. Total gross loans have increased $8.4 million or
10% since December 31, 1996 and $12.7 million or 15% since September 30, 1996
and decreased $77.8 thousand since last quarter.
Other Income
During the first nine months of 1997, other income increased $109,277
or 46% over the same period in 1996. Gains on the sale of loans accounted for
$31,671 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 $46,106 or 38% 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 $29,383 or 58% as a result of increased Letters
of Credit fees and servicing fees for SBA loans.
<PAGE>
Other Expense
Other expenses for the nine months ended September 30, 1997 increased
$630,604 or 25% from the same period in 1996. In July of 1997, the Company
opened its second branch office in Bridgewater Township. Expenses were impacted
by additional personnel, occupancy costs, and other expenses related to the
opening of a new branch. In 1996, the Company opened its first branch office in
Hillsborough Township during the first quarter and moved its back-office
operations to 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. Consequently, total assets have grown $27.7 million or 24% since September
30, 1996. Because of the growth in assets and the new Bridgewater office, the
Company has had to hire additional personnel to better service its customer
base. These additions combined with normal salary increases caused salary and
benefits expense to increase $289,807 or 22% from last year. Additional rent on
the Bridgewater location and depreciation on improved facilities resulted in a
$49,772 or 17% 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 $48,647 or 28% from last year.
Other expenses increased from last year $242,378 or 33%. 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 $13,373 were incurred
to maintain the Company's other real estate owned, which was disposed of in the
third quarter of 1997. There was a decline in marketing and business development
costs because last year's expenses included the grand opening costs for the
Hillsborough office and the full impact of the opening of the Bridgewater office
did not occur in the third quarter of 1997. The Company is also introducing
several new products which will impact these expenses in the fourth quarter of
1997. Directors' fees expense increased by $41,131.
Financial Condition
September 30, 1997 compared to December 31, 1996
Total assets increased $19.8 million or 16% from December 31, 1996.
Total loans grew $8.4 million. Most of the growth in loans ($8.6 million)
occurred in loans secured by real estate with the biggest increases in the
residential and commercial mortgage loan portfolios. Loans to individuals for
automobiles, which had experienced significant growth over the past two years,
declined by $0.6 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 $18.6 million or 17% during the first nine months.
All deposit categories increased with the largest increase of $6.6 million in
the time deposits less than $100,000 category.
Investment securities increased $8.9 million. The increase in deposits
coupled with the timing of loan growth generated additional investments.
Investments available for sale increased $5.1 million from December 31, 1996 to
provide liquidity for impending loan growth.
Asset Quality
Loans past due 90 days or more and still accruing totaled $56,127 as of
September 30, 1997 and $20,600 at December 31, 1996 and represented .06% and
.02% of total loans as of September 30, 1997 and December 31, 1996,
respectively.
<PAGE>
Loans in a non-accrual status totaled $192,412 at September 30, 1997
and $24,384 at December 31, 1996 and represented .21% and .03% of total loans as
of September 30, 1997 and December 31, 1996, respectively.
The Company had no other real estate owned at September 30, 1997.
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, 1997, the allowance for loans losses was $938,037 and
represented .97% of total loans and 377% 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 nine months of 1997 totaled $64,606 compared
to $51,043 for the year ended December 31, 1996.
Capital Resources
Total Shareholders' Equity was $12,713,923 at September 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>
September 30, December 31,
1997 1996
---- ----
<S> <C> <C>
Tier I Capital to Risk Weighted Assets 11.81% 12.56%
Total Capital to Risk Weighted Assets 12.71% 13.40%
Leverage Ratio ....................... 8.80% 9.58%
</TABLE>
Liquidity
Cash and cash equivalents totaled $14.0 million at September 30, 1997
an increase of $1.9 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 $19.1 million. Time deposits experienced the largest
increase for the nine month period of $8.5 million.
The increase in financing activities was offset by an increase in
investing activities of $17.8 million. The investing activities for the nine
months of 1997 were in the form of loans ($8.4 million) and purchases of
securities ($19.4 million). Security purchases were offset by security
maturities of $10.6 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: November 6, 1997 By: /s/ Keith B. McCarthy
---------------------
Keith B. McCarthy
Executive Vice President
Chief Accounting Officer
<TABLE> <S> <C>
<ARTICLE> 9
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> SEP-30-1997
<CASH> 5,516,428
<INT-BEARING-DEPOSITS> 0
<FED-FUNDS-SOLD> 6,775,000
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 13,841,241
<INVESTMENTS-CARRYING> 17,812,077
<INVESTMENTS-MARKET> 0
<LOANS> 96,213,217
<ALLOWANCE> (938,037)
<TOTAL-ASSETS> 144,822,802
<DEPOSITS> 131,144,923
<SHORT-TERM> 0
<LIABILITIES-OTHER> 518,956
<LONG-TERM> 445,000
0
0
<COMMON> 5,711,274
<OTHER-SE> 7,002,649
<TOTAL-LIABILITIES-AND-EQUITY> 144,822,802
<INTEREST-LOAN> 6,344,591
<INTEREST-INVEST> 1,242,409
<INTEREST-OTHER> 276,227
<INTEREST-TOTAL> 7,863,227
<INTEREST-DEPOSIT> 3,571,839
<INTEREST-EXPENSE> 3,576,020
<INTEREST-INCOME-NET> 4,287,207
<LOAN-LOSSES> 215,000
<SECURITIES-GAINS> 4,072,207
<EXPENSE-OTHER> 3,139,942
<INCOME-PRETAX> 1,278,845
<INCOME-PRE-EXTRAORDINARY> 763,671
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 763,671
<EPS-PRIMARY> .56
<EPS-DILUTED> .56
<YIELD-ACTUAL> 4.51
<LOANS-NON> 192,412
<LOANS-PAST> 56,127
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 783,366
<CHARGE-OFFS> 64,606
<RECOVERIES> 4,277
<ALLOWANCE-CLOSE> 938,037
<ALLOWANCE-DOMESTIC> 938,037
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
