UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
------------------------------
FORM 10-QSB
(Mark One)
|X| QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2000
|_| 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 0-23971
GASTON FEDERAL BANCORP, INC.
----------------------------
(Exact name of registrant as specified in its charter)
United States 56-2063438
- ------------------------------ ----------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
245 West Main Avenue, Gastonia, North Carolina 28052-4140
---------------------------------------------------------
(Address of principal executive offices)
Registrant's telephone number, including area code: (704)-868-5200
--------------
---------------------------------------------------------
Former name, former address and former fiscal year,
if changed since last report
Indicate by check |X| 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: There were 4,233,934 shares
of the Registrant's common stock outstanding as of May 5, 2000.
<PAGE>
GASTON FEDERAL BANCORP, INC.
INDEX
Page
----
PART I. FINANCIAL INFORMATION
Item 1. Consolidated Financial Statements ............................. 2
Consolidated Statements of Financial Condition as of
March 31, 2000 and September 30, 1999 ........................ 2
Consolidated Statements of Operations for the three and
six months ended March 31, 2000 and 1999 ....................... 3
Consolidated Statements of Comprehensive Income for the
six months ended March 31, 2000 and 1999 ....................... 4
Consolidated Statements of Cash Flows for the six months ended
March 31, 2000 and 1999 ........................................ 5
Notes to Consolidated Financial Statements ......................... 6
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations ..................................... 8
PART II. OTHER INFORMATION ................................................ 12
1
<PAGE>
PART I. FINANCIAL INFORMATION
ITEM 1. Consolidated Financial Statements
Gaston Federal Bancorp, Inc. and Subsidiary
Consolidated Statements of Financial Condition (unaudited)
(in thousands)
<TABLE>
<CAPTION>
March 31, September 30,
2000 1999
----------- -------------
<S> <C> <C>
Assets
Cash and cash equivalents ......................................... 3,586 12,583
Investment securities available-for-sale, at fair value ........... 23,067 15,777
Investment securities held-to-maturity, at amortized cost ......... 12,864 12,865
Mortgage-backed securities available-for-sale, at fair value ...... 19,040 16,167
Mortgage-backed securities held-to-maturity, at amortized cost .... 3,263 3,825
Loans, net ........................................................ 171,635 168,044
Premises and equipment, net ....................................... 3,832 2,503
Accrued interest receivable ....................................... 1,322 1,244
Federal Home Loan Bank stock ...................................... 2,125 1,775
Other assets ...................................................... 4,499 2,670
--------- ---------
Total assets .................................................... $ 245,233 $ 237,453
========= =========
Liabilities and Equity
Deposits .......................................................... $ 161,142 $ 159,425
Advances from borrowers for taxes and insurance ................... 713 761
Borrowed money .................................................... 42,769 35,500
Other liabilities ................................................. 2,210 2,059
--------- ---------
Total liabilities ............................................... 206,834 197,745
Retained earnings, substantially restricted ....................... 23,112 22,653
Common stock and additional paid in capital, net of ESOP loan ..... 15,366 16,879
Unrealized gain/(loss) on securities available-for-sale, net of tax (79) 176
--------- ---------
Total equity .................................................... 38,399 39,708
--------- ---------
Total liabilities and equity ...................................... $ 245,233 $ 237,453
========= =========
</TABLE>
See accompanying notes to consolidated financial statements.
2
<PAGE>
Gaston Federal Bancorp, Inc. and Subsidiary
Consolidated Statements of Operations (unaudited)
(in thousands, except per share data)
<TABLE>
<CAPTION>
Three Months Six Months
Ended March 31, Ended March 31,
--------------- ---------------
2000 1999 2000 1999
---- ---- ---- ----
<S> <C> <C> <C> <C>
Interest income
Loans ............................................... $ 3,162 $ 2,964 $ 6,264 $ 5,814
Investment securities ............................... 458 622 1,007 1,294
Mortgage-backed and related securities .............. 397 184 697 370
---------- ---------- ---------- ----------
Total interest income ............................. 4,017 3,770 7,968 7,478
Interest Expense
Deposits ............................................ 1,669 1,556 3,338 3,136
Borrowed funds ...................................... 555 355 1,018 662
---------- ---------- ---------- ----------
Total interest expense .............................. 2,224 1,911 4,356 3,798
---------- ---------- ---------- ----------
Net interest income ................................. 1,793 1,859 3,612 3,680
Provision for loan losses ........................... 8 50 15 65
---------- ---------- ---------- ----------
Net interest income after provision for loan losses 1,785 1,809 3,597 3,615
Noninterest Income
Service charges on deposit accounts ................. 134 85 263 160
Gain on sale of securities .......................... 0 0 0 6
Gain on sale of loans ............................... 0 138 0 138
Other income ........................................ 267 152 458 294
---------- ---------- ---------- ----------
Total noninterest income .......................... 401 375 721 598
Noninterest Expense
Compensation and benefits ........................... 902 685 1,707 1,361
Occupancy and equipment expense ..................... 166 124 320 210
Other expenses ...................................... 462 537 888 978
---------- ---------- ---------- ----------
Total noninterest expense ......................... 1,530 1,346 2,915 2,549
Income before income taxes .......................... 656 838 1,403 1,664
Provision for income taxes .......................... 198 301 445 601
---------- ---------- ---------- ----------
Net income .......................................... $ 458 $ 537 $ 958 $ 1,063
========== ========== ========== ==========
Basic earnings per share ............................ $ 0.11 $ 0.12 $ 0.22 $ 0.24
Diluted earnings per share .......................... $ 0.11 $ 0.12 $ 0.22 $ 0.24
Basic weighted average outstanding shares ........... 4,277,593 4,448,098 4,308,767 4,465,911
Diluted weighted average outstanding shares ......... 4,277,593 4,448,098 4,308,767 4,465,911
Dividends paid per share ............................ $ 0.06 $ 0.05 $ 0.12 $ 0.10
</TABLE>
3
<PAGE>
Gaston Federal Bancorp, Inc. and Subsidiary
Consolidated Statements of Comprehensive Income (unaudited)
(in thousands)
<TABLE>
<CAPTION>
Six Months Ended
March 31,
------------------
2000 1999
------- -------
<S> <C> <C>
Net income .................................................................. $ 958 $ 1,063
Other comprehensive income, net of tax:
Unrealized gains on securities:
Unrealized holding gains/(losses) arising during period ............ (255) (45)
Reclassification adjustment for (gains)/losses included in net income 0 (4)
------- -------
Other comprehensive income .............................................. (255) (49)
------- -------
Comprehensive income ........................................................ $ 703 $ 1,014
------- -------
</TABLE>
4
<PAGE>
Gaston Federal Bancorp, Inc. and Subsidiary
Consolidated Statements of Cash Flows (unaudited)
(in thousands)
<TABLE>
<CAPTION>
Six Months Ended
March 31,
--------------------
2000 1999
-------- --------
<S> <C> <C>
Cash flows from operating activities:
Net income ...................................................................... $ 958 $ 1,063
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for loan losses .................................................... 15 65
Depreciation ................................................................. 175 219
(Gain) on sale of investment securities ...................................... 0 (6)
(Gain) on sale of other assets ............................................... 0 (138)
(Increase) in other assets ................................................... (1,908) (335)
Increase (decrease) in other liabilities ..................................... 150 (252)
-------- --------
Net cash provided by (used for) operating activities ........................ (610) 616
-------- --------
Cash flows from investing activities:
Net (increase) in loans receivable .............................................. (3,538) (22,354)
Sale of investment securities ................................................... 0 2,000
Maturities and prepayments of investment securities ............................. 1,806 4,225
Maturities and prepayments of mortgage-backed securities ........................ 1,839 2,332
Purchases of investments ........................................................ (9,350) (7,994)
Purchases of mortgage-backed securities ......................................... (4,149) (1,485)
Net cash flows from other investing activities .................................. (1,854) (603)
-------- --------
Net cash provided by (used for) investment activities ....................... (15,246) (23,879)
-------- --------
Cash flows from financing activities:
Net increase in deposits ........................................................ 1,717 8,685
Dividends to stockholders ....................................................... (499) (449)
Repurchase of common stock ...................................................... (1,581) (803)
Net increase in borrowed money .................................................. 7,269 8,000
(Decrease) in advances from borrowers for insurance and taxes ................... (47) (10)
-------- --------
Net cash provided by financing activities ................................... 6,859 15,423
-------- --------
Net (decrease) in cash and cash equivalents ....................................... (8,997) (7,840)
Cash and cash equivalents at beginning of period .................................. 12,583 13,798
-------- --------
Cash and cash equivalents at end of period ........................................ $ 3,586 $ 5,958
======== ========
</TABLE>
5
<PAGE>
GASTON FEDERAL BANCORP, INC. AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Note A - Basis of Presentation
In management's opinion, the financial information, which is unaudited,
reflects all adjustments (consisting solely of normal recurring adjustments)
necessary for a fair presentation of the financial information as of and for the
three and six month periods ended March 31, 2000 and 1999, in conformity with
generally accepted accounting principles. The financial statements include the
accounts of Gaston Federal Bancorp, Inc. (the "Company") and its wholly-owned
subsidiary, Gaston Federal Bank (the "Bank"). Operating results for the three
and six month periods ended March 31, 2000, are not necessarily indicative of
the results that may be expected for future periods.
The organization and business of the Company, accounting policies
followed, and other information are contained in the notes to the consolidated
financial statements of the Company as of and for the years ended September 30,
1999 and 1998, filed as part of the Company's annual report on Form 10-KSB.
These consolidated financial statements should be read in conjunction with the
annual consolidated financial statements.
Note B - Earnings per Share
Earnings per share has been determined under the provisions of the
Statement of Financial Accounting Standards No. 128, Earnings Per Share. For the
quarters ended March 31, 2000 and 1999, basic earnings per share has been
computed based upon the weighted average common shares outstanding of 4,277,593
and 4,448,098, respectively. For the six months ended March 31, 2000 and 1999,
basic earnings per share has been computed based upon the weighted average
common shares outstanding of 4,308,767 and 4,465,911, respectively.
The only potential stock of the Company as defined in the Statement of
Financial Accounting Standards No. 128, Earnings Per Share, is stock options
granted to various directors and officers of the Bank. The following is a
summary of the diluted earnings per share calculation for the three and six
months ended March 31, 2000, and 1999: (in thousands, except per share data)
<TABLE>
<CAPTION>
Three Months Six Months
Ended March 31, Ended March 31,
------------------ -------------------
2000 1999 2000 1999
---- ---- ---- ----
<S> <C> <C> <C> <C>
Net income ........................ $ 458 $ 537 $ 958 $ 1,063
Weighted average outstanding shares 4,277,593 4,448,098 4,308,767 4,465,911
Dilutive effect of stock options .. 0 0 0 0
---------- ---------- ---------- ----------
Weighted average diluted shares ... 4,277,593 4,448,098 4,308,767 4,465,911
Diluted earnings per share ....... $ 0.11 $ 0.12 $ 0.22 $ 0.24
</TABLE>
All options were excluded from the calculation of diluted earnings per
share because the exercise prices of $12.00 for 190,069 shares and $13.00 for
10,000 shares exceeded the average market price of $11.415 for the three months
ended March 31, 2000, and $11.844 for the six months ended March 31, 2000. There
was no potential stock outstanding as of March 31, 1999.
6
<PAGE>
Note C - Stock Compensation Plans
On April 12, 1999, the Company's shareholders, among other actions,
approved the Gaston Federal Bank 1999 Recognition and Retention Plan.
Subsequently, 84,534 shares of common stock were awarded under the plan to
directors and management. All such awards vested during the quarter ended June
30, 1999. In addition, the Company's shareholders approved the Gaston Federal
Bank 1999 Stock Option Plan that provided for the issuance of 211,335 options
for directors and officers to purchase the Company's common stock. As of March
31, 2000, 200,069 options had been awarded under the plan at a weighted average
exercise price of $12.05 and a weighted average contractual life of 112 months.
There were 82,819 options fully vested as of March 31, 2000. The Company applies
the provisions of Accounting Principles Board Opinion No. 25 in accounting for
the Stock Option Plan described above and, accordingly, no compensation expense
has been recognized in connection with the granting of the stock options.
7
<PAGE>
ITEM 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations
From time to time, the Company may publish forward-looking statements
relating to such matters as anticipated financial performance, business
prospects, technological developments, new products, and similar matters. The
Private Securities Litigation Reform Act of 1995 provides a safe harbor for
forward-looking statements provided that the Company notes that a variety of
factors could cause the Company's actual results to differ materially from the
anticipated results expressed in the Company's forward-looking statements. The
risks and uncertainties that may affect the operations, performance, and results
of the Company's business include, but are not limited to, changes in economic
conditions, changes in interest rates, and changes in laws and regulations.
Accordingly, past results and trends should not be used by investors to
anticipate future results or trends. Statements included in this report should
be read in conjunction with the Company's Annual Report on Form 10-KSB and are
incorporated into this discussion by this reference.
Comparison of Financial Condition
Assets. Total assets of the Company increased by $7.8 million, or 3.2%,
from $237.4 million as of September 30, 1999, to $245.2 million as of March 31,
2000. During the six month period ended March 31, 2000, cash and cash
equivalents decreased by $9.0 million to $3.6 million. These funds were used, in
part, to fund $3.6 million in additional loans outstandings, $2.0 million
purchase of bank-owned life insurance, $1.6 million in common stock repurchases,
$1.0 million in facilities and equipment for the new Dallas branch, and $449,000
in cash dividends. During the period, mortgage loans decreased by $3.8 million,
or 2.7%, to $138.7 million, while nonmortgage loans increased by $7.4 million,
or 28.9%, to $33.0 million. This shift in the loan portfolio composition
reflects management's efforts to make the Company's balance sheet more
reflective of a community bank. Management plans to continue to grow the loan
portfolio in a safe and sound manner with an emphasis on short-term,
high-yielding nonmortgage loans. Also during the period, investment securities
increased by $7.3 million to $35.9 million, and mortgage-backed securities
increased by $2.3 million to $22.3 million.
Liabilities. Total liabilities increased by $9.1 million, or 4.4%, from
$197.7 million as of September 30, 1999, to $206.8 million as of March 31, 2000.
The primary reason for the change was a $1.7 million, or 1.1%, increase in total
deposits from $159.4 million to $161.1 million. Management plans to continue in
its efforts to gain deposit market share through new product development,
aggressive marketing, and branch expansion. Borrowed money increased by $7.3
million to $42.8 million and is primarily comprised of various callable and
fixed-term Federal Home Loan Bank advances with a weighted average interest rate
of 5.77%.
Equity. Total equity decreased by $1.3 million, or 3.4%, from $39.7
million as of September 30, 1999, to $38.4 million as of March 31, 2000. This
decrease was primarily due to the repurchase of 130,700 shares of common stock
for $1.6 million at a weighted average price of $12.10 per share, the payment of
$499,000 in cash dividends, or $0.12 per share, and a $255,000 reduction in
unrealized gains on available for sale securities. This decrease in equity was
partly offset by $958,000 in earnings for the period. Management plans to
continue repurchasing its common stock in the open market when such actions are
considered to be financially prudent. The Company has been authorized to
repurchase a total of 295,869 shares of common stock, or 54,437 additional
shares.
8
<PAGE>
Comparison of Results of Operations for the Three Months Ended March 31, 2000
and 1999
General. Net income for the Company for the three months ended March 31,
2000, amounted to $458,000, or $0.11 per share, as compared to $537,000, or
$0.12 per share, for the three months ended March 31, 1999.
Net interest income. Net interest income decreased slightly to $1.8
million for the three months ended March 31, 2000, from $1.9 million for the
three months ended March 31, 1999. Interest income increased by $247,000,
primarily due to a $12.5 million increase in total loans and a $6.1 million
increase in investment and mortgage-backed securities, coupled with an increase
in interest rates. In addition, interest expense increased by $314,000,
primarily due to a $8.5 million increase in total deposits and a $15.3 million
increase in borrowed money, coupled with an increase in interest rates.
Provision for loan losses. The provision for loan losses amounted to
$7,500 for the three months ended March 31, 2000, as compared to $50,000 for the
three months ended March 31, 1999. This represents a decrease of $42,500. The
amount of the provision for loan losses was reduced, in part, due to an overall
reduction in the percentage of nonperforming assets to 0.17% of total assets as
of March 31, 2000, from 0.23% of total assets as of March 31, 1999. The ratio of
loan loss reserves to gross loans was 0.88% as of March 31, 2000, and 0.92% as
of March 31, 1999.
Noninterest income. Total operating noninterest income amounted to
$401,000 for the three months ended March 31, 2000, as compared to $237,000 for
the three months ended March 31, 1999. This increase of $164,000, or 69.2%, was
primarily due to additional fee income derived from loan and deposit products
and commissions paid on the sale of uninsured financial products through the
Bank's wholly-owned subsidiary. Also, noninterest income for the quarter ended
March 31, 1999 included $138,000 in nonrecurring income derived from the sale of
mortgage loans. Also, the Bank purchased $2.0 million in bank-owned life
insurance in January 2000. The interest credited on these policies amounted to
$19,000 for the period.
Noninterest expense. Total noninterest expense amounted to $1.5 million
for the three months ended March 31, 2000, as compared to $1.3 million for the
three months ended March 31, 1999. This increase of $185,000, or 13.7%, was
primarily due to the expenses associated with the opening of the Bank's fifth
full-service branch office in February 2000 and the operation of the Bank's new
loan production office that opened in October 1999.
Income taxes. Income taxes amounted to $198,000, or 30.2% of taxable
income, for the three month period ended March 31, 2000, as compared to
$301,000, or 35.9% of taxable income, for the three month period ended March 31,
1999. This represents a decrease of $103,000, or 34.3%. This difference was
primarily due to a $183,000 decrease in net income before taxes for the three
months ended March 31, 2000, and an increase in interest income from
tax-advantaged securities such as bank-qualified municipal securities, FNMA
preferred stock, government agency securities, and bank-owned life insurance.
9
<PAGE>
Comparison of Results of Operations for the Six Months Ended March 31, 2000 and
1999
General. Net income for the Company for the six months ended March 31,
2000, amounted to $958,000, or $0.22 per share, as compared to $1,063,000, or
$0.24 per share, for the six months ended March 31, 1999.
Net interest income. Net interest income decreased slightly to $3.6
million for the six months ended March 31, 2000, from $3.7 million for the six
months ended March 31, 1999. Interest income increased by $490,000, or 6.6%,
primarily due to a $12.5 million increase in total loans and a $6.1 million
increase in investment and mortgage-backed securities, coupled with an increase
in interest rates. In addition, interest expense increased by $558,000, or
14.7%, primarily due to a $8.5 million increase in total deposits and a $15.3
million increase in borrowed money, coupled with an increase in interest rates.
Provision for loan losses. The provision for loan losses amounted to
$15,000 for the six months ended March 31, 2000, as compared to $65,000 for the
six months ended March 31, 1999. This represents a decrease of $50,000. The
amount of the provision for loan losses was reduced, in part, due to an overall
reduction in the percentage of nonperforming assets to 0.17% of total assets as
of March 31, 2000, from 0.23% of total assets as of March 31, 1999. The ratio of
loan loss reserves to gross loans was 0.88% as of March 31, 2000, and 0.92% as
of March 31, 1999.
Noninterest income. Total operating noninterest income amounted to
$721,000 for the six months ended March 31, 2000, as compared to $454,000 for
the six months ended March 31, 1999. This increase of $267,000, or 58.8%, was
primarily due to additional fee income derived from loan and deposit products
and commissions paid on the sale of uninsured financial products through the
Bank's wholly-owned subsidiary. Also, noninterest income for the six months
ended March 31, 1999 included $144,000 in nonrecurring income derived from the
sale of assets.
Noninterest expense. Total noninterest expense amounted to $2.9 million
for the six months ended March 31, 2000, as compared to $2.5 million for the six
months ended March 31, 1999. This increase of $366,000, or 14.4%, was primarily
due to the expenses associated with the opening of the Bank's fifth full-service
branch office in February 2000 and the operation of the Bank's new loan
production office that opened in October 1999.
Income taxes. Income taxes amounted to $445,000, or 31.7% of taxable income, for
the six month period ended March 31, 2000, as compared to $601,000, or 36.1% of
taxable income, for the six month period ended March 31, 1999. This represents a
decrease of $156,000, or 26.0%. This difference was primarily due to a $261,000
decrease in net income before taxes for the three months ended March 31, 2000,
and an increase in interest income from tax-advantaged securities such as
bank-qualified municipal securities, FNMA preferred stock, government agency
securities, and bank-owned life insurance.
10
<PAGE>
Liquidity and Capital Resources
The objective of the Bank's liquidity management is to ensure the
availability of sufficient cash flows to meet all financial commitments and to
capitalize on opportunities for expansion. Liquidity management addresses the
Bank's ability to meet deposit withdrawals on demand or at contractual maturity,
to repay borrowings as they mature, and to fund new loans and investments as
opportunities arise.
The Bank's primary sources of internally generated funds are principal and
interest payments on loans receivable and cash flows generated from operations.
External sources of funds include increases in deposits and advances from the
Federal Home Loan Bank of Atlanta.
The Bank is required under applicable federal regulations to maintain
specified levels of liquid investments in qualifying types of investments having
maturities of five years or less. Current OTS regulations require that a savings
bank maintain liquid assets of not less that 4% of its average daily balance of
net withdrawable deposit accounts and borrowings payable in one year or less.
Monetary penalties may be imposed for failure to meet applicable liquidity
requirements. At March 31, 2000, the Bank's liquidity, as measured for
regulatory purposes, was 16.5%, or $21.5 million in excess of the minimum OTS
requirement.
The Bank is subject to various regulatory capital requirements
administered by the banking regulatory agencies. Failure to meet minimum capital
requirements can initiate certain mandatory and possibly discretionary actions
by the regulators that, if undertaken, could have a direct material effect on
the Bank's financial statements. Under capital adequacy guidelines and the
regulatory framework for prompt corrective action, the Bank must meet specific
capital guidelines that involve quantitative measures of the Bank's assets,
liabilities, and certain off-balance sheet items as calculated under regulatory
accounting practices. The Bank's capital amounts and classifications are subject
to qualitative judgments by the regulators about components, risk-weightings,
and other factors. As of March 31, 2000, Gaston Federal Bank's level of capital
substantially exceeded all applicable regulatory requirements.
11
<PAGE>
PART II. OTHER INFORMATION
Legal Proceedings
There are various claims and lawsuits in which the Bank is periodically
involved incidental to the Bank's business. In the opinion of management, no
material loss is expected from any of such pending claims or lawsuits.
Changes in Securities
Not applicable.
Defaults Upon Senior Securities
Not applicable.
Submission of Matters to a Vote of Security Holders
There were no meetings of the Company's shareholders during the quarter
ended December 31, 1999.
Exhibits and Report on Form 8-K.
No Form 8-K reports were filed during the quarter.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed by the undersigned thereunto
duly authorized.
GASTON FEDERAL BANCORP, INC.
Date: May 12, 2000 By: /s/ Kim S. Price
--------------------------------------
Kim S. Price
President and Chief Executive Officer
Date: May 12, 2000 By: /s/ Gary F. Hoskins
--------------------------------------
Gary F. Hoskins
Senior Vice President, Chief Financial
Officer and Treasurer
13
<TABLE> <S> <C>
<ARTICLE> 9
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> SEP-30-1999
<PERIOD-START> OCT-01-1999
<PERIOD-END> MAR-31-2000
<CASH> 3,586
<INT-BEARING-DEPOSITS> 0
<FED-FUNDS-SOLD> 0
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 23,067
<INVESTMENTS-CARRYING> 12,864
<INVESTMENTS-MARKET> 12,184
<LOANS> 171,635
<ALLOWANCE> 1,522
<TOTAL-ASSETS> 245,233
<DEPOSITS> 161,142
<SHORT-TERM> 10,269
<LIABILITIES-OTHER> 2,210
<LONG-TERM> 32,500
0
0
<COMMON> 15,366
<OTHER-SE> 23,033
<TOTAL-LIABILITIES-AND-EQUITY> 245,233
<INTEREST-LOAN> 6,263
<INTEREST-INVEST> 1,007
<INTEREST-OTHER> 697
<INTEREST-TOTAL> 7,968
<INTEREST-DEPOSIT> 3,338
<INTEREST-EXPENSE> 4,356
<INTEREST-INCOME-NET> 3,612
<LOAN-LOSSES> 15
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 2,915
<INCOME-PRETAX> 1,403
<INCOME-PRE-EXTRAORDINARY> 1,403
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 958
<EPS-BASIC> 0.22
<EPS-DILUTED> 0.22
<YIELD-ACTUAL> 2.6
<LOANS-NON> 147
<LOANS-PAST> 0
<LOANS-TROUBLED> 258
<LOANS-PROBLEM> 1,717
<ALLOWANCE-OPEN> 1,509
<CHARGE-OFFS> 2
<RECOVERIES> 0
<ALLOWANCE-CLOSE> 1,522
<ALLOWANCE-DOMESTIC> 1,522
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
