SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-QSB
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For Quarterly Period Ended June 30, 1998 Commission File No. 000-29640
COMMUNITY FIRST BANCORPORATION
- --------------------------------------------------------------------------------
(Exact name of small business issuer as specified in its charter)
SOUTH CAROLINA 58-2322486
- --------------------------------- ---------------------------------
(State or other jurisdiction of (IRS Employer Identification No.)
incorporation or organization)
3685 BLUE RIDGE BOULEVARD
WALHALLA, SOUTH CAROLINA 29691
- --------------------------------------------------------------------------------
(Address of principal executive offices)
(864) 638-2105
- --------------------------------------------------------------------------------
(Issuer's telephone number)
Check whether the issuer (1) filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act during the past 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 [ ]
State the number of shares outstanding of each of the issuer's classes of
common equity, as of the latest practicable date: Common Stock, no par or stated
value, 1,778,396 Shares Outstanding on July 31, 1998
Transitional Small Business Disclosure Format (Check one): Yes [ ] No [X]
-1-
<PAGE>
COMMUNITY FIRST BANCORPORATION
FORM 10-QSB
Index
<TABLE>
<CAPTION>
Page
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
<S> <C>
Consolidated Balance Sheet .................................................................... 3
Consolidated Statement of Income .............................................................. 4
Consolidated Statement of Comprehensive Income ................................................ 5
Consolidated Statement of Changes in Shareholders' Equity ..................................... 6
Consolidated Statement of Cash Flows .......................................................... 7
Notes to Unaudited Consolidated Financial Statements .......................................... 8-9
Item 2. Management's Discussion and Analysis .......................................................... 10-12
PART II - OTHER INFORMATION
Item 4. Submission of Matters to a Vote of Security Holders ........................................... 13
Item 6. Exhibits and Reports on Form 8-K .............................................................. 13
SIGNATURE ....................................................................................................... 14
</TABLE>
-2-
<PAGE>
PART I - FINANCIAL INFORMATION
Item 1. - Financial Statements
COMMUNITY FIRST BANCORPORATION
Consolidated Balance Sheet
<TABLE>
<CAPTION>
(Unaudited)
June 30, December 31,
1998 1997
------------ ------------
(Dollars in thousands)
Assets
<S> <C> <C>
Cash and due from banks ................................................. $ 2,696 $ 4,834
Federal funds sold ...................................................... 6,310 6,510
Available-for-sale securities ........................................... 40,001 25,510
Other investments ....................................................... 345 335
Loans ................................................................... 68,655 65,838
Less allowance for loan losses ........................................ (1,006) (890)
------------ ---------
Loans - net ......................................................... 67,649 64,948
Premises and equipment - net ............................................ 1,689 1,675
Accrued interest receivable ............................................. 905 793
Other assets ............................................................ 357 363
------------ ---------
Total assets .................................................... $ 119,952 $ 104,968
============ =========
Liabilities
Deposits
Noninterest bearing demand ............................................ $ 20,866 $ 16,501
Interest bearing transaction accounts ................................. 11,120 10,106
Savings ............................................................... 21,370 16,191
Time deposits $100M and over .......................................... 23,179 23,046
Other time deposits ................................................... 29,773 26,446
------------ ---------
Total deposits .................................................. 106,308 92,290
Accrued interest payable ................................................ 775 772
Other liabilities ....................................................... 144 56
------------ ---------
Total liabilities ............................................... 107,227 93,118
------------ ---------
Shareholders' equity
Common stock - no par value; 10,000,000
shares authorized; shares issued and
outstanding 1,776,020 for 1998 and
1,772,280 for 1997* ................................................... 10,509 10,479
Retained earnings ....................................................... 2,246 1,387
Accumulated other comprehensive
income (loss) ......................................................... (30) (16)
------------ ---------
Total shareholders' equity ...................................... 12,725 11,850
------------ ---------
Total liabilities and
shareholders' equity .......................................... $ 119,952 $ 104,968
============ =========
</TABLE>
- ------------------------------------
*Number of shares has been retroactively adjusted to reflect a 2-for-1 stock
split effective July 31, 1998.
See notes to unaudited consolidated financial statements.
-3-
<PAGE>
COMMUNITY FIRST BANCORPORATION
Consolidated Statement of Income
<TABLE>
<CAPTION>
(Unaudited)
Period Ended June 30,
Three Months Six Months
---------------------- -----------------------
1998 1997 1998 1997
------- ------ ------ -------
(Dollars in thousands, except per share)
Interest income
<S> <C> <C> <C> <C>
Loans, including fees .................................... $1,538 $1,305 $3,020 $2,542
Securities
U.S. Treasury .......................................... 5 70 29 143
U.S. Government agencies ............................... 441 365 801 722
Federal funds sold ....................................... 257 157 540 394
Other investments ........................................ 6 - 8 -
------ ------ ------ ------
Total interest income ............................ 2,247 1,897 4,398 3,801
------ ------ ------ ------
Interest expense
Time deposits $100M and over ............................. 338 285 652 564
Other deposits ........................................... 804 632 1,555 1,326
------ ------ ------ ------
Total interest expense ........................... 1,142 917 2,207 1,890
------ ------ ------ ------
Net interest income ........................................ 1,105 980 2,191 1,911
Provision for loan losses .................................. 60 81 125 146
------ ------ ------ ------
Net interest income after provision ........................ 1,045 899 2,066 1,765
------ ------ ------ ------
Other income
Service charges on deposit accounts ...................... 89 77 173 143
Credit life insurance commissions ........................ 13 11 21 18
Other income ............................................. 40 73 78 107
------ ------ ------ ------
Total other income ............................... 142 161 272 268
------ ------ ------ ------
Other expenses
Salaries and employee benefits ........................... 280 255 532 474
Net occupancy expense .................................... 24 23 47 52
Furniture and equipment expense .......................... 46 41 100 76
Other expense ............................................ 169 183 325 323
------ ------ ------ ------
Total other expenses ............................. 519 502 1,004 925
------ ------ ------ ------
Income before income taxes ................................. 668 558 1,334 1,108
Income tax expense ......................................... 238 201 475 392
------ ------ ------ ------
Net income ................................................. $ 430 $ 357 $ 859 $ 716
====== ====== ====== ======
Per share*
Net income ............................................... $ .24 $ .20 $ .48 $ .41
Net income, assuming dilution ............................ .23 .20 .46 .39
</TABLE>
*Per share information has been retroactively adjusted to reflect a 2-for-1
stock split effective July 31, 1998, and a 15% stock dividend effective
December 30, 1997.
See notes to unaudited consolidated financial statements.
-4-
<PAGE>
COMMUNITY FIRST BANCORPORATION
Consolidated Statement of Comprehensive Income
<TABLE>
<CAPTION>
(Unaudited)
Period Ended June 30,
Three Months Six Months
--------------------- -----------------------
1998 1997 1998 1997
---- ---- ----- ------
(Dollars in thousands)
<S> <C> <C> <C> <C>
Net income ................................................... $ 430 $ 357 $ 859 $ 716
----- ----- ----- -----
Other comprehensive income (loss)
Change in unrealized holding gains
and (losses) on available-
for-sale securities ...................................... (55) 93 (21) (13)
Income tax expense (benefit)
on other comprehensive income ............................ (19) 33 (7) (5)
----- ----- ----- -----
Total other comprehensive
income (loss) ...................................... (36) 60 (14) (8)
----- ----- ----- -----
Comprehensive income ......................................... $ 394 $ 417 $ 845 $ 708
===== ===== ===== =====
</TABLE>
See notes to unaudited consolidated financial statements.
-5-
<PAGE>
COMMUNITY FIRST BANCORPORATION
Consolidated Statement of Changes in Shareholders' Equity
<TABLE>
<CAPTION>
(Unaudited)
Common Stock Accumulated
Number Other
of Capital Retained Comprehensive
Shares* Amount Surplus Earnings Income Total
------- ------ ------- -------- ------ -----
(Dollars in thousands)
<S> <C> <C> <C> <C> <C> <C>
Balance January 1, 1997 ................. 1,529,108 $ 3,823 $ 4,659 $ 1,932 $ (79) $ 10,335
Net income for period ................... 716 716
Changes in unrealized holding gains
and losses on available-for-sale
securities, net of taxes (8) (8)
Exercise of stock options ............... 296 1 1 2
---------- ---------- ---------- ---------- ---------- ----------
Balance June 30, 1997 ................... 1,529,404 $ 3,824 $ 4,660 $ 2,648 $ (87) $ 11,045
========== ========== ========== ========== ========== ==========
Balance January 1, 1998 ................. 1,772,280 $ 10,479 $ $ 1,387 $ (16) $ 11,850
Net income for period ................... 859 859
Changes in unrealized holding gains
and losses on available-for-sale
securities, net of taxes .............. (14) (14)
Exercise of stock options ............... 6,116 30 30
---------- ---------- ---------- ---------- ---------- ----------
Balance June 30, 1998 ................... 1,778,396 $ 10,509 $ $ 2,246 $ (30) $ 12,725
========== ========== ========== ========== ========== ==========
</TABLE>
- --------------------------
*Number of shares has been retroactively adjusted to reflect a 2-for-1 stock
split effected on July 31, 1998.
See notes to unaudited consolidated financial statements.
-6-
<PAGE>
COMMUNITY FIRST BANCORPORATION
Consolidated Statement of Cash Flows
<TABLE>
<CAPTION>
(Unaudited)
Six Months Ended
June 30,
1998 1997
-------- ---------
(Dollars in thousands)
Operating activities
<S> <C> <C>
Net income ..................................................................... $ 859 $ 716
Adjustments to reconcile net income to
net cash provided by operating activities
Provision for loan losses .................................................. 125 146
Depreciation ............................................................... 74 56
Amortization of net loan fees and costs .................................... 24 (6)
Accretion and premium amortization ......................................... (53) (9)
Writedowns of other real estate ............................................ - 25
Gain on sale of other real estate .......................................... - (45)
Increase in interest receivable ............................................ (112) (135)
Increase (decrease) in interest payable .................................... 3 (199)
Decrease (increase) in prepaid expenses .................................... 13 (144)
Increase (decrease) in other accrued expenses .............................. 88 (19)
-------- --------
Net cash provided by operating activities .............................. 1,021 386
-------- --------
Investing activities
Maturities of available-for-sale securities .................................... 15,454 1,385
Purchases of available-for-sale securities ..................................... (29,913) (4,000)
Purchase of other investments .................................................. (10) -
Net increase in loans made to customers ........................................ (2,850) (6,017)
Proceeds from sale of other real estate ........................................ - 45
Purchases of premises and equipment ............................................ (88) (40)
-------- --------
Net cash used by investing activities .................................. (17,407) (8,627)
-------- --------
Financing activities
Net increase (decrease) in demand deposits,
interest bearing transaction accounts
and savings accounts ......................................................... 10,558 (1,240)
Net increase in certificates of
deposit and other time deposits .............................................. 3,460 2,331
Exercise of stock options ...................................................... 30 2
-------- --------
Net cash provided by financing activities .............................. 14,048 1,093
-------- --------
Decrease in cash and cash equivalents ............................................ (2,338) (7,148)
Cash and cash equivalents, beginning ............................................. 11,344 15,417
-------- --------
Cash and cash equivalents, ending ................................................ $ 9,006 $ 8,269
======== ========
</TABLE>
See notes to unaudited consolidated financial statements.
-7-
<PAGE>
COMMUNITY FIRST BANCORPORATION
Notes to Unaudited Consolidated Financial Statements
Accounting Policies - A summary of significant accounting policies is included
in the Company's Annual Report for the year ended December 31, 1997 on Form
10-KSB filed with the Securities and Exchange Commission.
Management Opinion - In the opinion of management, the accompanying unaudited
consolidated financial statements of Community First Bancorporation reflect all
adjustments which are necessary for a fair presentation of the results of the
periods presented. Such adjustments were of a normal, recurring nature.
Statement of Cash Flows - Interest paid on deposits and other borrowings
amounted to $2,204,000 for the six months ended June 30, 1998, and was
$2,089,000 for the six months ended June 30, 1997. Income tax payments of
$415,000 were made during the first six months of 1998, and income tax payments
of $429,000 were made in the 1997 period. Non-cash investment security valuation
adjustments totaling $21,000 were made in the 1998 period decreasing
available-for-sale securities, and a related shareholders' equity account
decreased by $14,000 and the associated deferred income taxes changed $7,000.
During the 1997 period, non-cash valuation adjustments decreased securities by
$13,000, decreased shareholders' equity $8,000 and changed deferred income taxes
by $5,000.
Nonperforming Loans - As of June 30, 1998, there were $109,000 in nonaccrual
loans and $12,000 in loans 90 days or more past due as to principal or interest
payments still accruing.
Earnings Per Share - The Company adopted the provisions of Statement of
Accounting Standards No. 128, "Earnings per Share" during 1997, as required. All
prior years' figures are restated on a comparable basis. On June 18, 1998, the
Company's Board of Directors declared a two-for-one stock split for all
shareholders of record on July 1, 1998. The stock split was effected on July 31,
1998. Also, on December 30, 1997, a 15% stock dividend was effected. The
presentation of numbers of shares and all per share amounts have been
retroactively adjusted to reflect the stock split and stock dividend.
Basic earnings per common share is computed by dividing net income applicable to
common shares by the weighted average number of common shares outstanding.
Diluted earnings per share are based on dividing applicable net income by the
weighted average number of common shares outstanding and any dilutive potential
common shares and dilutive stock options. It is assumed that all dilutive stock
options are exercised at the beginning of each period and that the proceeds are
used to purchase shares of the Company's common stock at the average market
price during the period. Net income per share and net income per share, assuming
dilution, were computed as follows:
-8-
<PAGE>
<TABLE>
<CAPTION>
(Unaudited)
Period Ended June 30,
Three Months Six Months
------------ ----------
1998 1997 1998 1997
---------- ---------- ---------- ----------
(Dollars in thousands, except per share amounts)
Net income per share (basic)
<S> <C> <C> <C> <C>
Numerator - net income ............................... $ 430 $ 357 $ 859 $ 716
========== ========== ========== ==========
Denominator
Weighted average common shares
issued and outstanding ........................... 1,776,986 1,758,474 1,776,160 1,758,474
========== ========== ========== ==========
Net income per share (basic) ................. $ .24 $ .20 $ .48 $ .41
========== ========== ========== ==========
Net income per share, assuming dilution
Numerator - net income ............................... $ 430 $ 357 $ 859 $ 716
========== ========== ========== ==========
Denominator
Weighted average common shares
issued and outstanding ........................... 1,776,986 1,758,474 1,776,160 1,758,474
Effect of dilutive stock options ................... 78,664 70,568 76,140 63,462
---------- ---------- ---------- ----------
Total ............................................ 1,855,650 1,829,042 1,852,300 1,821,936
========== ========== ========== ==========
Net income per share,
assuming dilution .......................... $ .23 $ .20 $ .46 $ .39
========== ========== ========== ==========
</TABLE>
-9-
<PAGE>
Item 2. - Management's Discussion and Analysis
Forward Looking Statements
Statements included in Management's Discussion and Analysis which are
not historical in nature are intended to be, and are hereby identified as
"forward looking statements" for purposes of the safe harbor provided by Section
21E of the Securities Exchange Act of 1934, as amended. The Company cautions
readers that forward looking statements, including without limitation, those
relating to the Company's future business prospects, revenues, working capital,
liquidity, capital needs, interest costs, and income, are subject to certain
risks and uncertainties that could cause actual results to differ materially
from those indicated in the forward looking statements, due to several important
factors herein identified, among others, and other risks and factors identified
from time to time in the Company's reports filed with the Securities and
Exchange Commission.
Results of Operations
Community First Bancorporation (the "Company") recorded net income of
$430,000 or $.24 per share for the second quarter of 1998, bringing net income
to $859,000 or $.48 per share for the six months ended June 30, 1998. These
results compare favorably with net income of $357,000 or $.20 per share for the
second quarter of 1997 and $716,000 or $.41 per share for the six months ended
June 30, 1997. Net income per share, assuming dilution, for the 1998 three and
six months periods ended June 30, 1998 was $.23 and $.46, respectively. For the
comparable 1997 periods, net income per share, assuming dilution, was $.20 and
$.39, respectively. The net income per share figures for 1998 and 1997 have been
retroactively adjusted to reflect a two-for-one stock split effective July 31,
1998, and a 15% stock dividend effective December 30, 1997.
Net Interest Income
Net interest income is the principal source of the Company's earnings. For
the second quarter of 1998, net interest income was $1,105,000. This is an
increase of $125,000 or 12.8% over the comparable 1997 quarter. Net interest
income for the first six months of 1998 was $2,191,000, representing an increase
of $280,000 or 14.7% over the first six months of 1997. Both interest income and
interest expense increased for the first six months of 1998, compared with the
same period one year ago, primarily as a result of increased volumes of interest
earning assets and interest bearing liabilities. Average interest earning assets
for the first six months of 1998 were $115,501,000, an increase of $14,596,000
or 14.5% over the prior year level. Average interest bearing liabilities
increased to $87,143,000 for the first half of 1998, representing an increase of
$9,473,000 or 12.2% over the comparable period of the previous year. The average
interest rate spread (average yield on interest earning assets less the average
rate paid on interest bearing liabilities) for the first six months of 1998 was
2.60%, a decrease of 9 basis from the prior year's 2.69%. However, because of
the greater percentage and absolute dollar increases in interest earning assets
as compared with interest bearing liabilities, the net yield on earning assets
(net interest income divided by average interest earning assets) for the 1998
period increased by 2 basis points compared with the prior year to 3.84%.
-10-
<PAGE>
The increases in both interest earning assets and interest bearing
liabilities resulted from the Company's continuing marketing strategies to
increase its market share in its current local service area within Oconee
County, South Carolina. Management expects to continue to utilize such
strategies during the remainder of 1998. In addition, see the discussion under
"Noninterest Expenses" below regarding the Company's plans to expand into
Anderson County, South Carolina.
Provision and Allowance for Loan Losses
The provision for loan losses charged to expense was $60,000 for the second
quarter of 1998 compared with $81,000 for the second quarter of 1997, and was
$125,000 for the first six months of 1998 compared with $146,000 for the first
six months of 1997. At June 30, 1998 the allowance for loan losses stood at
1.47% of loans compared with 1.35% at the end of 1997. At the end of the first
half of 1998, nonaccrual loans totaled $109,000, and there were $12,000 in loans
that were 90 days or more past due and still accruing interest income. The
majority of the nonaccrual loans were secured by real estate.
Management believes that the allowance for loan losses is adequate to
absorb all estimated future risk of loss inherent in the loan portfolio as of
June 30, 1998.
Noninterest Income
Noninterest income totaled $142,000 for the second quarter of 1998
compared with $161,000 for the comparable 1997 quarter. Noninterest income was
$272,000 for the first six months of 1998 compared with $268,000 for the 1997
period. The decrease of $19,000 in other income for the three months ended in
1998 resulted primarily from the nonrecurring sale of other real estate at a
gain of $45,000 during the 1997 period.
Noninterest Expenses
Noninterest expenses totaled $519,000 for the second quarter of 1998,
compared with $502,000 for 1997. Noninterest expenses were $1,004,000 for the
first six months of 1998 compared with $925,000 for the first half of 1997.
Salaries and employee benefits were up $25,000 for the second quarter of 1998
and $58,000 for the first half of 1997. Part of the increase in salaries is due
to the hiring of additional personnel necessary to meet the demands of the
Company's expanding customer base. Net occupancy expense and furniture and
equipment expenses increased $19,000 during the first half of 1998 as a result
of the depreciation, maintenance and training expenses associated with the
installation of a new computer system and software completed late in the second
quarter of 1997. Furniture and equipment expenses are expected to continue to
increase throughout 1998 as compared with 1997.
In July, 1998, the Company's banking subsidiary filed an application
with regulatory authorities to place a branch office in the city of Anderson,
South Carolina, which is located in an adjacent county. The Company's entry into
this new market area on a de novo basis will increase operating expenses in most
categories, and is expected to initially have a negative effect on net income.
This trend is
-11-
<PAGE>
expected to continue until the new office acquires a sufficiently large customer
base and attains the volumes of deposits and interest earning assets that would
enable it to contribute to the Company's profitability. Management currently
estimates that capital expenditures needed to open the new office will total
approximately $1,330,000. Subject to regulatory approval of the application,
management expects to open for business a temporary office during the fourth
quarter of 1998, with completion of the construction of the new office to come
late in the second quarter of 1999.
Liquidity
Liquidity is the ability to meet current and future obligations through
liquidation or maturity of existing assets or the acquisition of additional
liabilities. The Company manages both assets and liabilities to achieve
appropriate levels of liquidity. Cash and short-term investments are the
Company's primary sources of asset liquidity. These funds provide a cushion
against short-term fluctuations in cash flow from both deposits and loans.
Securities available-for sale are the Company's principal source of secondary
asset liquidity. However, the availability of this source is influenced by
market conditions. Individual and commercial deposits are the Company's primary
source of funds for credit activities.
As of June 30, 1998, the ratio of loans to total deposits was 64.6%. Management
believes that the Company's liquidity sources are adequate to meet its operating
needs.
Capital Resources
The capital base for the Company increased by $875,000 since December 31,
1997 as the result of the $859,000 of net income for the first six months of
1998, less $14,000 for the change in unrealized holding gains and losses on
available-for-sale securities, plus the addition of $30,000 from the exercise of
employees' stock options.
The Company and its banking subsidiary (the "Bank") are each subject to
regulatory risk-based capital adequacy standards. Under these standards, bank
holding companies and banks are required to maintain certain minimum ratios of
capital to risk-weighted assets and average total assets. Under the provisions
of the Federal Deposit Insurance Corporation Improvement Act of 1991 (FDICIA),
federal bank regulatory authorities are required to implement prescribed "prompt
corrective actions" upon the deterioration of the capital position of a bank. If
the capital position of an affected institution were to fall below certain
levels, increasingly stringent regulatory corrective actions are mandated.
The June 30, 1998 risk-based capital ratios for the Company and the
Bank are presented in the following table, compared with the "well capitalized"
and minimum ratios under the regulatory definitions and guidelines:
Total
Tier 1 Capital Leverage
------ ------- --------
Community First Bancorporation 18.6% 19.8% 10.5%
Community First Bank 18.2% 19.4% 10.3%
Minimum "well capitalized" requirement 6.0% 10.0% 5.0%
Minimum requirement 4.0% 8.0% 3.0%
-12-
<PAGE>
PART II - OTHER INFORMATION
Item 4. - Submission of Matters to a Vote of Security Holders.
On Tuesday, April 28, 1998, the shareholders of Community First
Bancorporation held their regular annual meeting. At the meeting, two matters
were submitted to a vote with results as follows:
1. Election of three directors to hold office for three-year terms:
SHARES VOTED
------------
AUTHORITY
DIRECTORS FOR* WITHHELD*
--------- ---- ---------
Blake L. Griffith 1,175,306 276
Robert H. Edwards, Sr. 1,175,262 320
Gary V. Thrift 1,175,582 -
The following directors continue to serve until the expiration of their
terms at the annual meetings to be held in the years indicated, and were not
voted on at the annual meeting: R. Theo Harris, Sr. - 1999, James E. McCoy -
1999, James E. Turner - 1999, Charles L. Winchester - 1999, Larry S. Bowman -
2000, William M. Brown - 2000, John R. Hamrick - 2000, Frederick D. Shepherd,
Jr. - 2000.
2. Adoption of the 1998 Stock Option Plan.
FOR - 1,159,080 shares* AGAINST - 7,380 shares* ABSTAIN - 20,292 shares*
- --------------------
*Number of shares voted has been retroactively adjusted to reflect the
two-for-one stock split effected on July 31, 1998.
Item 6. - Exhibits and Reports on Form 8-K.
(a) Exhibits
Exhibit No.
from Item 601 of
Regulation S-B Description
-------------- -----------
27 Financial Data Schedule
(b) Reports on Form 8-K. None.
-13-
<PAGE>
SIGNATURE
In accordance with the requirements of the Exchange Act, the registrant
caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.
COMMUNITY FIRST BANCORPORATION
August 11, 1998 /s/Frederick D. Shepherd, Jr.
--------------- -----------------------------------------------
Date Frederick D. Shepherd, Jr., President and Chief
Executive Officer (also principal accounting
officer)
-14-
<PAGE>
EXHIBIT INDEX
Exhibit No.
from Item 601 of
Regulation S-B Description
-------------- -----------
27 Financial Data Schedule
<TABLE> <S> <C>
<ARTICLE> 9
<LEGEND>
This schedule contains summary financial information extracted from the
Consolidated Balance Sheet at June 30, 1998, (unaudited) and the Consolidated
Statement of Income for the six months ended June 30, 1998, (unaudited) and is
qualified in its entirety by reference to such financial statements.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> JUN-30-1998
<CASH> 2,696
<INT-BEARING-DEPOSITS> 0
<FED-FUNDS-SOLD> 6,310
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 40,001
<INVESTMENTS-CARRYING> 0
<INVESTMENTS-MARKET> 0
<LOANS> 68,655
<ALLOWANCE> 1,006
<TOTAL-ASSETS> 119,952
<DEPOSITS> 106,308
<SHORT-TERM> 0
<LIABILITIES-OTHER> 919
<LONG-TERM> 0
0
0
<COMMON> 10,509
<OTHER-SE> 2,216
<TOTAL-LIABILITIES-AND-EQUITY> 119,952
<INTEREST-LOAN> 3,020
<INTEREST-INVEST> 830
<INTEREST-OTHER> 548
<INTEREST-TOTAL> 4,398
<INTEREST-DEPOSIT> 2,207
<INTEREST-EXPENSE> 2,207
<INTEREST-INCOME-NET> 2,191
<LOAN-LOSSES> 125
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 1,004
<INCOME-PRETAX> 1,334
<INCOME-PRE-EXTRAORDINARY> 859
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 859
<EPS-PRIMARY> .48
<EPS-DILUTED> .46
<YIELD-ACTUAL> 3.84
<LOANS-NON> 109
<LOANS-PAST> 12
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 460
<ALLOWANCE-OPEN> 890
<CHARGE-OFFS> 28
<RECOVERIES> 19
<ALLOWANCE-CLOSE> 1,006
<ALLOWANCE-DOMESTIC> 1,006
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
