UNITED STATES
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, 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 0 - 20957
----------------------------------------------------
SUN BANCORP, INC.
-----------------
(Exact name of registrant as specified in its charter)
New Jersey 52-1382541
- --------------------------------------------- ----------------
(State or other jurisdiction of incorporation (I.R.S. Employer
or organization) Identification)
226 Landis Avenue, Vineland, New Jersey 08360
---------------------------------------------
(Address of principal executive offices)
(Zip Code)
(609) 691 - 7700
----------------
(Registrant's telephone number, including area code)
- --------------------------------------------------------------------------------
(Former name, former address and former fiscal year,
if changed since lastreport)
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. Yes X No
----- -----
APPLICABLE ONLY TO CORPORATE ISSUERS
Indicate the number of shares outstanding of each of the issuer's
classes of common stock, as of the latest practicable date.
$ 1.00 Par Value Common Stock 1,759,987 August 31, 1996
- ----------------------------- --------- ---------------
Class Number of shares outstanding Date
<PAGE>
SUN BANCORP, INC.
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
<TABLE>
<CAPTION>
June 30, December 31,
1996 1995
------------ ------------
(Unaudited)
ASSETS
<S> <C> <C>
Cash and due from banks $ 16,442,042 $ 17,242,366
Federal funds sold -- --
------------ ------------
Cash and cash equivalents 16,442,042 17,242,366
Investment securities available for sale (amortized cost -
$139,399,696; 1996, and $146,379,244; 1995) 136,703,278 147,008,896
Loans receivable (net of allowance for loan losses -
$2,172,669; 1996, and $2,064,640; 1995) 234,668,681 183,633,631
Bank properties and equipment 11,488,211 11,419,175
Real estate owned, net 790,378 876,302
Accrued interest receivable 3,376,104 2,564,921
Excess of cost over fair value of assets acquired 5,778,568 6,191,919
Deferred taxes 1,852,446 205,169
Other assets 1,475,607 752,257
------------ ------------
TOTAL $412,575,315 $369,894,636
============ ============
LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES
Deposits $371,015,077 $335,247,796
Advances from the Federal Home Loan Bank 7,400,000 8,000,000
Federal funds purchased and securities sold under agreements to repurchase 6,836,197 -
Other liabilities 2,446,493 1,976,044
------------ ------------
Total liabilities 387,697,767 345,223,840
------------ ------------
SHAREHOLDERS' EQUITY
Preferred stock, none issued -- --
Common stock, $1 par value, 10,000,000 shares authorized,
issued and outstanding: 1,759,987 in 1996; and 1,651,175 in 1995; 1,759,987 1,651,175
Surplus 18,097,909 17,197,275
Retained earnings 6,799,288 5,406,774
Unrealized (loss) gain on securities available for sale, net of income taxes (1,779,636) 415,572
------------ ------------
Total shareholders' equity 24,877,548 24,670,796
------------ ------------
TOTAL $412,575,315 $369,894,636
============ ============
</TABLE>
- --------------------------------------------------------------------------------
See notes to consolidated financial statements
1
<PAGE>
SUN BANCORP, INC.
CONSOLIDATED STATEMENTS OF INCOME
<TABLE>
<CAPTION>
For the Three Months For the Six Months
Ended June 30, Ended June 30,
1996 1995 1996 1995
----------- ----------- ------------ ------------
(Unaudited)
INTEREST INCOME:
<S> <C> <C> <C> <C>
Interest and fees on loans $5,033,756 $3,554,474 $ 9,596,375 $ 6,811,656
Interest on investment securities 1,848,700 969,590 3,709,481 1,929,980
Interest on federal funds sold 34,710 209,750 65,023 374,111
----------- ----------- ------------ ------------
Total interest income 6,917,166 4,733,814 13,370,879 9,115,747
----------- ----------- ------------ ------------
INTEREST EXPENSE:
Interest on deposits 2,955,195 1,751,179 5,511,184 3,245,352
Interest on borrowed funds 46,090 316 87,068 1,527
----------- ----------- ------------ ------------
Total interest expense 3,001,285 1,751,495 5,598,252 3,246,879
----------- ----------- ------------ ------------
Net interest income 3,915,881 2,982,319 7,772,627 5,868,868
PROVISION FOR LOAN LOSSES 225,000 60,000 450,000 290,000
----------- ----------- ------------ ------------
Net interest income after provision for loan losses 3,690,881 2,922,319 7,322,627 5,578,868
----------- ----------- ------------ ------------
OTHER INCOME:
Service charges on deposit accounts 247,505 143,784 488,272 285,797
Other service charges 26,743 15,305 44,747 28,870
Gain on sale of fixed assets 3,000 14,529
Gain on sale of loans 207,984
Gain on sale of investment securities 31,484 191,288
Other 47,444 42,151 119,654 178,643
----------- ----------- ------------ ------------
Total other income 356,176 201,240 858,490 701,294
----------- ----------- ------------ ------------
OTHER EXPENSES:
Salaries and employee benefits 1,370,700 1,063,473 2,867,345 2,142,186
Occupancy expense 375,040 270,174 770,045 563,732
Equipment expense 179,329 89,850 349,785 179,186
Provision for losses on real estate owned 27,660
Professional fees and services 79,250 76,776 154,147 148,135
Data processing expense 264,123 124,499 515,259 238,766
Amortization of excess of cost over
fair value of assets acquired 206,745 47,606 413,420 95,213
Postage and supplies 111,059 67,824 242,538 135,247
Insurance 41,250 155,047 73,964 308,557
Other 363,650 301,277 734,143 651,363
----------- ----------- ------------ ------------
Total other expenses 2,991,146 2,196,526 6,120,646 4,490,045
----------- ----------- ------------ ------------
INCOME BEFORE INCOME TAXES 1,055,911 927,03 2,060,471 1,790,117
INCOME TAXES 332,000 268,000 668,000 500,000
----------- ----------- ------------ ------------
NET INCOME $ 723,911 $ 659,033 $ 1,392,471 $ 1,290,117
=========== =========== ============ ============
Earnings per common and common equivalent share
Net income $ 0.41 $ 0.37 $ 0.79 $ 0.76
=========== =========== ============ ============
Earnings per common share - assuming full dilution
Net income $ 0.41 $ 0.37 $ 0.79 $ 0.76
=========== =========== ============ ============
Weighted average shares 1,678,378 1,648,306 1,666,720 1,628,936
=========== =========== ============ ============
</TABLE>
- ------------------------------------------------------
See notes to consolidated financial statements
2
<PAGE>
SUN BANCORP, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
For the Six Months
Ended June 30,
1996 1995
---- ----
(Unaudited)
OPERATING ACTIVITIES:
<S> <C> <C>
Net income $ 1,392,471 $ 1,290,117
Adjustments to reconcile net income to net cash provided by
(used in) operating activities:
Provision for loan losses 450,000 290,000
Provision for loss on real estate owned 27,660
Depreciation and amortization 233,192 137,089
Amortization of excess cost over fair value of assets acquired 413,420 95,213
Gain on sale of investment securities available for sale (191,288)
Gain on sale of bank properites and equipment (14,529)
Gain on sale of loans (207,984)
Change in assets and liabilities which (used) provided cash:
Accrued interest and other assets (2,050,974) (882,839)
Accounts payable and accrued expenses 470,449 338,201
------------- -------------
Net cash provided by operating activities 702,741 1,087,457
------------- -------------
INVESTING ACTIVITIES:
Purchases of investment securities held to maturity (34,481,962)
Purchases of investment securities available for sale (125,543,579)
Proceeds from maturities of investment securities held to maturity 30,508,170
Proceeds from maturities of investment securities available for sale 47,965,005
Proceeds from maturities of mortgage-backed securities held to maturity 113,512
Proceeds from sale of investment securities available for sale 33,899,410
Proceeds from sale of mortgage-backed securities available for sale 50,850,000
Proceeds from sale of loans 1,870,608
Net increase in loans (51,485,050) (20,060,241)
Purchase of bank properties and equipment (302,228) (363,743)
Proceeds from sale of bank properties and equipment 14,529
Decrease in real estate owned, net 85,924 73,718
------------- -------------
Net cash used in investing activities (44,515,989) (22,339,938)
------------- -------------
FINANCING ACTIVITIES:
Net increase in deposits 35,767,281 23,148,095
Net borrowings 6,236,197
Proceeds from exercise of stock options 1,009,446 583,740
Proceeds from issuance of common stock 260,000
------------- -------------
Net cash provided by (used in) financing activities 43,012,924 23,991,835
------------- -------------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (800,324) 2,739,354
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 17,242,366 10,170,697
------------- -------------
CASH AND CASH EQUIVALENTS, END OF PERIOD $ 16,442,042 $ 12,910,051
============= =============
</TABLE>
- -------------------------------------------------------------------------------
See notes to consolidated financial statements
3
<PAGE>
SUN BANCORP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(1) Summary of Significant Accounting Policies
Basis of Financial Statement Presentation
The audited and unaudited consolidated financial statements contained
herein for Sun Bancorp, Inc. (the "Company") include the accounts of
Sun Bancorp, Inc. and its wholly-owned subsidiary, Sun National Bank
(the "Bank") and the bank's wholly-owned subsidiary, Med-Vine, Inc. All
significant inter-company balances and transactions have been
eliminated.
The accompanying consolidated financial statements were prepared in
accordance with instructions to Form 10-Q, and therefore, do not
include information or footnotes necessary for a complete presentation
of financial position, results of operations and cash flows in
conformity with generally accepted accounting principles. However, all
normal recurring adjustments which, in the opinion of management, are
necessary for a fair presentation of the financial statements, have
been included. These financial statements should be read in conjunction
with the audited financial statements and the accompanying notes
thereto included in the Company's Annual Report for the period ended
December 31, 1996. The results for the six months and quarter ended
June 30, 1996 are not necessarily indicative of the results that may be
expected for the fiscal year ending December 31, 1996.
(2) Loans
The components of loans as of June 30, 1996 and December 31, 1995 were
as follows:
<TABLE>
<CAPTION>
June 30, 1996 December 31, 1995
(Unaudited)
<S> <C> <C>
Commercial and industrial $ 169,253,493 $ 118,874,150
Real estate-residential mortgages 53,892,068 54,414,800
Installment 13,695,789 12,409,321
-------------- --------------
Total gross loans 236,841,350 185,698,271
Allowance for loan losses (2,172,669) (2,064,640)
-------------- --------------
Net Loans $ 234,668,681 $ 183,633,631
============== ==============
Non-accrual loans $ 1,977,429 $ 2,658,118
</TABLE>
4
<PAGE>
(3) Allowance For Loan Losses
Changes in the allowance for loan losses were as follows:
<TABLE>
<CAPTION>
For the six month
period ended
June 30, 1996 December 31, 1995
(Unaudited)
<S> <C> <C>
Balance, beginning of period $ 2,064,640 $ 1,607,375
Charge-offs (350,174) (426,289)
Recoveries 8,203 75,894
----------- ------------
Net charge-offs (341,971) (350,395)
Provision for loan losses 450,000 807,660
----------- -------
Balance, end of period $ 2,172,669 $ 2,064,640
============ ===========
</TABLE>
The provision for loan losses charged to expense is based upon past
loan and loss experience and an evaluation of potential losses in the
current loan portfolio, including the evaluation of impaired loans
under SFAS Nos. 114 and 118. A loan is considered to be impaired when,
based upon current information and events, it is probable that the Bank
will be unable to collect all amounts due according to the contractual
terms of the loan.
An insignificant delay or insignificant shortfall in amount of payments
does not necessarily result in a loan being identified as impaired. For
this purpose, delays less than 90 days are considered to be
insignificant.
Impairment losses are included in the provision for loan losses. SFAS
Nos. 114 and 118 do not apply to large groups of smaller balance,
homogeneous loans that are collectively evaluated for impairment,
except for those loans restructured under a troubled debt
restructuring. Loans collectively evaluated for impairment include
consumer loans and residential real estate loans, and are not included
in the data that follows:
<TABLE>
<CAPTION>
June 30, 1996 December 31, 1995
(Unaudited)
Impaired loans with related reserve for loan
<S> <C> <C>
losses ($296,307) calculated under SFAS No. 114 -- $ 454,489
Impaired loans with no related reserve for loan
losses calculated under SFAS No. 114 $ 619,939 527,908
---------- -------
Total impaired loans $ 619,939 $ 982,397
</TABLE>
<TABLE>
<CAPTION>
For the Six
Months Ended
June 30, 1996 December 31, 1995
(Unaudited)
<S> <C> <C>
Average impaired loans $ 573,670 $ 411,289
Interest income recognized in impaired loans -- 18,561
Cash basis interest income recognized on impaired loans -- --
</TABLE>
5
<PAGE>
(4) Deposits
Deposits consist of the following major classifications:
<TABLE>
<CAPTION>
June 30, 1996 December 31, 1995
(Unaudited)
<S> <C> <C>
Demand deposits $ 127,765,572 $ 128,802,293
Savings deposits 65,770,228 66,970,293
Time certificates under $100,000 143,101,262 122,415,317
Time certificates $100,000 or more 34,378,015 17,059,893
---------- ----------
Total $ 371,015,077 $ 335,247,796
============== ==============
</TABLE>
Of the total demand deposits, approximately, $67,863,000 (unaudited)
and $62,700,000 are non-interest bearing at June 30, 1996 and December
31, 1995.
(5) Earnings Per Share
Earnings per share were calculated as follows:
<TABLE>
<CAPTION>
For the Three Month Periods Ended For the Six Month Periods Ended
June 30, June 30,
-------- --------
(Unaudited)
1996 1995 1996 1995
---- ---- ---- ----
Assumptions:
<S> <C> <C> <C> <C>
Net income for the period $ 723,911 $ 631,373 $ 1,392,471 $ 1,290,117
Average common shares outstanding 1,678,378 1,648,306 1,666,720 1,628,936
Dilutive options outstanding to purchase
equivalent shares 217,643 185,126 217,643 185,126
Average exercise price per share $ 11.282 $ 8.635 $ 11.282 $ 8.635
Estimated market value per common share
to be used $ 18.50 $ 13.00 $ 18.50 $ 13.00
Computations:
Application of assumed proceeds:
Towards repurchase of outstanding
common shares at applicable market value $ 2,455,448 $ 1,598,563 $ 2,455,448 $ 1,598,563
Adjustment of shares outstanding:
Actual average shares outstanding 1,678,378 1,648,306 1,666,720 1,628,936
Net additional shares issuable 84,916 62,160 84,916 62,160
--------- --------- --------- ---------
Adjusted shares outstanding 1,763,294 1,710,466 1,751,636 1,691,096
========= ========= ========= =========
Earnings per share:
Before adjustment $ 0.43 $ 0.38 $ 0.84 $ 0.79
======= ======= ======= =======
After adjustment $ 0.41 $ 0.37 $ 0.79 $ 0.76
======= ======= ======= =======
</TABLE>
6
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Financial Condition
Total Assets at June 30, 1996 increased by $42.7 million to $412.6
million as compared to $369.9 million at December 31, 1995, growth of 11.5%. The
increase was due to $51.0 million in loan growth, primarily commercial loans,
partially offset by a $10.3 million decrease in investment securities. The
increase in total assets was funded by a growth of $35.8 million in deposits and
$6.8 million in federal funds purchased and securities sold under agreements to
repurchase.
Total capital increased $207,000 from December 31, 1995 to June 30,
1996. The increase resulted from the exercise of stock options $1.0 million; the
Company's six month earnings of $1.4 million, and offset by the change in
unrealized losses on securities available for sale of $2.2 million.
Liquidity and Capital Resources
Liquidity management is a daily and long-term business function. The
Company's liquidity, represented in part by cash and cash equivalents, is a
product of its operating, investing and financing activities. Proceeds from
repayment of loans, maturities of investment securities, net income and
increases in deposits are the primary sources of liquidity of the Company.
The Company has experienced a significant increase in commercial loan
demand and expects such demand to continue for the remainder of the current
fiscal year and into 1997. Management has demonstrated the ability to meet this
increased need for funds by attracting higher levels of time deposits, engaging
in repurchase agreements and utilizing its lines of credit with other financial
institutions. It also has the ability to liquidate portions of its investment
portfolio.
The increase of commercial loans has had the effect of lowering the
Company's risk-based capital ratios. In general, commercial loans are
categorized as having a 100% risk-weighting using the calculations required by
the Company's regulators. The rate at which commercial loans have grown has
outpaced the growth rate of the Company's capital.
It is management's intent to maintain risk-based capital levels that
are acceptable to its regulators. Management monitors the Company's capital
levels, and when appropriate, will recommend a capital raising effort to the
Company's board of directors.
Comparison of Operating Results for the Three Months Ended June 30, 1996 and
1995.
Net Income. Net income increased by $65,000 or 9.8% for the three
months ended June 30, 1996 to $724,000 from $659,000 for the three months ended
June 30, 1995. Net interest income increased $934,000 and the provision for loan
losses increased $165,000 for the three months ended June 30, 1996 compared to
the same period in 1995. Other income increased by $155,000 to $356,000 for the
three months ended June 30, 1996 as compared to $201,000 for the three months
ended June 30, 1995. Other expenses increased by $795,000 to $3.0 million for
the three months ended June 30, 1996 as compared to $2.2 million for the three
months ended June 30, 1995.
7
<PAGE>
Net Interest Income. The increase in net interest income was primarily
due to a $2.2 million increase in interest income partially offset by a $1.2
million increase in interest expense.
The increase to interest income was a result of significant loan growth
and higher levels of investment securities outstanding, and partially offset by
lower amounts of federal funds sold. Interest and fees on loans amounted to $5.0
million for the three months ended June 30, 1996 compared to $3.5 million for
the same period in 1995; an increase of about $1.5 million, or 42%. Interest on
investment securities increased $879,000, or 91% for the three months ended June
30, 1996 to $1.8 million from about $970,000 for the three months ended June 30,
1995. Interest income on federal funds sold only amounted to $35,000 for the
three months ended June 30, 1996 compared to $210,000 for the same period in
1995.
Deposit growth, as a result of the acquisition of eight branches from
other financial institutions in 1995, caused a sharp increase of interest
expense on deposit accounts. For the three months ended June 30, 1996, interest
on deposits amounted to almost $3.0 million, or a $1.2 million increase from the
three months ended June 30, 1995.
For the three months ended June 30, 1996, the provision for loan losses
amounted to $225,000, an increase of $165,000 compared to the same period in
1995. This increase was a result of the significant increase in commercial loan
balances in 1996. Management continually reviews the adequacy of the loan loss
reserve using guidelines promulgated by the bank's primary regulator.
Other Income and Other Expenses.
Other income increased $155,000 for the three month period ended June
30, 1996 compared to the three month period ended June 30, 1995. The increase
was mostly a result of higher levels of service charges on deposit accounts. As
was previously mentioned, the Company showed a sharp increase in deposits as a
result of its acquisition of branch offices.
Other expenses increased approximately $790,000, to $3.0 million for
the three months ended June 30, 1996 as compared to the same period in 1995. The
increase was a result of operating a much larger organization and amortizing the
premium paid on prior acquisitions. Salaries and employee benefits increased
$300,000, data processing expense increased $140,000, occupancy and equipment
expense increased $190,000 and amortization of intangibles increased about
$160,000.
Comparison of Operating Results for the Six Months Ended June 30, 1996 and 1995.
Net Income. Net income increased by $102,000 or 7.9% for the six months
ended June 30, 1996 to $1.4 million from $1.3 million for the six months ended
June 30, 1995. Net interest income increased $1.9 million and the provision for
loan losses increased $160,000 for the six months ended June 30, 1996 compared
to the same period in 1995. Other income increased by $157,000 to $858,000 for
the six months ended June 30, 1996 as compared to $701,000 for the six months
ended June 30, 1995. Other expenses increased by $1.6 million to $6.1 million
for the six months ended June 30, 1996 as compared to $4.5 million for the six
months ended June 30, 1995.
8
<PAGE>
Net Interest Income. The increase in net interest income was primarily
due to a $4.3 million increase in interest income partially offset by a $2.4
million increase in interest expense.
The increase to interest income was a result of the aforementioned loan
growth and higher levels of investment securities outstanding, and partially
offset by lower amounts of federal funds sold. Interest and fees on loans
amounted to $9.6 million for the six months ended June 30, 1996 compared to $6.8
million for the same period in 1995; an increase of $2.8 million, or 41%.
Interest on investment securities increased $1.8 million, or 92% for the six
months ended June 30, 1996 to $3.7 million from $1.9 million for the six months
ended June 30, 1995. Interest income on federal funds sold amounted to $65,000
for the six months ended June 30, 1996 compared to $374,000 for the same period
in 1995.
Deposit growth, as a result of the acquisition of eight branches from
other financial institutions in 1995, caused a sharp increase of interest
expense on deposit accounts. For the six months ended June 30, 1996, interest on
deposits amounted to over $5.5 million, or a $2.3 million increase from the six
months ended June 30, 1995.
For the six months ended June 30, 1996, the provision for loan losses
amounted to $450,000, an increase of $160,000 compared to the same period in
1995. This increase was a result of the significant increase in commercial loan
balances in 1996. Management continually reviews the adequacy of the loan loss
reserve using guidelines promulgated by the bank's primary regulator.
Other Income and Other Expenses.
Other income increased $157,000 for the six month period ended June 30,
1996 compared to the six month period ended June 30, 1995. The increase was
mostly a result of higher levels of service charges on deposit accounts. As was
previously mentioned, the Company showed a sharp increase in deposits as a
result of its acquisition of branch offices. For the six months ended June 30,
1996, the Company also realized a gain on the sale of investment securities in
the amount of $191,000. For the same period in 1995, the Company realized a gain
on the sale of loans in the amount of $208,000.
Other expenses increased approximately $1.6 million, to $6.1 million
for the six months ended June 30, 1996 as compared to the same period in 1995.
The increase was a result of operating a much larger organization and amortizing
the premium paid on prior acquisitions. Salaries and employee benefits increased
$725,000, data processing expense increased $276,000, occupancy and equipment
expense increased $377,000 and amortization of intangibles increased about
$318,000.
9
<PAGE>
PART II - OTHER INFORMATION
Item 1 Legal Proceedings
The Company is not engaged in any legal proceedings of a material
nature at June 30, 1996. From time to time, the Company is a party to legal
proceedings in the ordinary course of business wherein it enforces its security
interest in loans.
Item 2 Changes in Securities
Not applicable
Item 3 Defaults Upon Senior Securities
Not applicable
Item 4 Submission of Matters to a Vote of Security Holders
Not applicable
Item 5 Other Information
Not applicable
Item 6 Exhibits and Reports on Form 8-K
(a) Not Applicable
(b) No Form 8-K reports were filed during the quarter.
10
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Ace of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
Date September 20, 1996 Sun Bancorp, Inc.
------------------ -----------------
(Registrant)
/s/ Philip W. Koebig, III
---------------------
Philip W. Koebig, III
Executive Vice President
Date September 20, 1996 /s/ Robert F. Mack
------------------ --------------------
Robert F. Mack
Controller
11
<TABLE> <S> <C>
<ARTICLE> 9
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> JUN-30-1996
<CASH> 16,442
<INT-BEARING-DEPOSITS> 0
<FED-FUNDS-SOLD> 0
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 136,703
<INVESTMENTS-CARRYING> 136,703
<INVESTMENTS-MARKET> 136,703
<LOANS> 236,841
<ALLOWANCE> 2,173
<TOTAL-ASSETS> 412,575
<DEPOSITS> 371,015
<SHORT-TERM> 14,236
<LIABILITIES-OTHER> 2,446
<LONG-TERM> 0
0
0
<COMMON> 1,760
<OTHER-SE> 23,118
<TOTAL-LIABILITIES-AND-EQUITY> 412,575
<INTEREST-LOAN> 9,596
<INTEREST-INVEST> 3,709
<INTEREST-OTHER> 65
<INTEREST-TOTAL> 13,371
<INTEREST-DEPOSIT> 5,511
<INTEREST-EXPENSE> 5,598
<INTEREST-INCOME-NET> 7,773
<LOAN-LOSSES> 450
<SECURITIES-GAINS> 191
<EXPENSE-OTHER> 6,121
<INCOME-PRETAX> 2,060
<INCOME-PRE-EXTRAORDINARY> 1,392
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,392
<EPS-PRIMARY> 0.79
<EPS-DILUTED> 0.79
<YIELD-ACTUAL> 4.19
<LOANS-NON> 1,977
<LOANS-PAST> 475
<LOANS-TROUBLED> 981
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 2,065
<CHARGE-OFFS> 350
<RECOVERIES> 8
<ALLOWANCE-CLOSE> 2,173
<ALLOWANCE-DOMESTIC> 2,173
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 2,173
</TABLE>
