FORM 10-QSB
SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 20549
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended December 31, 1999
Commission File No. 0-24793
CGB&L FINANCIAL GROUP, INC.
(Exact name of registrant as specified in its charter)
Delaware 37-1374123
(State or other jurisdiction (I.R.S. Employer
of incorporation or organization) Identification No.)
229 East South Street, Cerro Gordo, Illinois 61818
(Address of principal executive offices and Zip Code)
(217) 763-2911
(Registrant's telephone number, including area code)
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______
As of December 31, 1999, the registrant had outstanding 96,635 shares
of its $.01 par value common stock.
Transitional Small Business Disclosure Format (Check One):
Yes/__/ No_X_/
Page 1 of 14 pages
<PAGE>
TABLE OF CONTENTS
<TABLE>
<CAPTION>
Part I - FINANCIAL INFORMATION
Page
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<S> <C>
Item 1. Financial Statements 3-7
Item 2. Management's Discussion and Analysis 8
Of Financial Condition and Results of Operations
Part II - OTHER INFORMATION
Item l. Legal Proceedings 12
Item 2. Change in Securities and Use of Proceeds 12
Item 3. Defaults Upon Senior Securities 12
Item 4. Submission of Matters to a Vote of Security Holders 12
Item 5. Other Information 12
Item 6. Exhibits and Reports on Form 8-K 12
Signatures 12
</TABLE>
Statements contained in the Form 10-QSB which are not historical facts are
forward-looking statements, as that term is described in the Private Securities
Litigation Reform Act of 1995. Such forward-looking statements are subject to
risk and uncertainties that could cause actual results to differ materially from
those projected. Such risks and uncertainties include potential changes in
interest rates, competitive factors in the financial services industry, general
economic conditions, the effect of new legislation and other risks detailed in
documents filed by the Company with the Securities and Exchange Commission from
time to time and in the Company's last filed Form 10KSB.
2
<PAGE>
CGB&L Financial Group, Inc.
Consolidated Balance Sheet
As of December 31 and March 31, 1999
<TABLE>
<CAPTION>
Dec. 31 March 31
1999 1999
----------- -----------
(unaudited)
<S> <C> <C>
Assets
Cash and Cash Equivalents $ 399,191 $ 775,314
Interest-bearing time deposits 594,000 891,000
Investment securities available for sale 173,250 211,827
Loans 6,614,531 5,422,973
Allowance for Loan losses (32,700) (32,700)
----------- -----------
Net Loans 6,581,831 5,390,273
Premises and equipment 16,862 16,193
Federal Home Loan Bank stock 55,100 55,100
Other assets 32,224 43,025
----------- -----------
Total Assets $ 7,852,458 $ 7,382,732
=========== ===========
Liabilities
Interest-bearing deposits $ 5,249,246 $ 4,995,294
Long-term debt 600,000 600,000
Short-term debt 300,000
Other liabilities 102,092 111,485
----------- -----------
Total liabilities 6,251,338 5,706,779
----------- -----------
Equity Received from Contributions to the ESOP 13,456 8,375
Stockholders' Equity
Preferred stock, $.01 par value
Authorized and unissued -- 100,000 shares
Common stock, $ .01 par value
Authorized-- 900,000 shares
Issued--99,000 shares 911 911
Paid in capital 619,044 619,193
Treasury Stock - 2,365 shares & 0 shares (24,832)
Unearned Incentive Plan Shares - 3,762 & 0 Shares (39,501)
Retained earnings 920,085 910,056
Accumulated comprehensive Income 111,957 137,418
----------- -----------
Total Stockholder's Equity 1,587,664 1,667,578
----------- -----------
Total liabilities and stockholders' equity $ 7,852,458 $ 7,382,732
=========== ===========
</TABLE>
See note to consolidated financial statements.
3
<PAGE>
CGB&L Financial Group, Inc.
Consolidated Income Statements (Unaudited)
For the nine months ended December 31, 1999 and 1998
<TABLE>
<CAPTION>
------------------------------
For the 9 months ended Dec. 31
------------------------------
1999 1998
-------- --------
<S> <C> <C>
Interest Income
Loans receivable $410,229 $379,527
Investment securities 4,500 3,983
Deposits with financial institutions 58,476 44,220
-------- --------
Total interest income 473,205 427,730
Interest Expense
Deposits 204,515 209,922
FHLB advances 34,473 29,150
-------- --------
Total interest expense 238,988 239,072
-------- --------
Net Interest Income 234,217 188,658
Provision for Loan Loss 0 0
-------- --------
Net Interest Income After Provision for Loan Losses 234,217 188,658
-------- --------
Noninterest Income 2,525 4,831
-------- --------
Noninterest Expense
Salaries and Employee Benefits 121,511 106,249
Net occupancy and equipment expenses 6,030 3,520
Deposit Insurance Expense 2,257 2,570
Insurance expense 3,789 2,468
Other expenses 63,424 35,242
-------- --------
Total noninterest expense 197,011 150,049
-------- --------
Income Before Income Tax 39,731 43,440
Income tax expense 9,902 12,944
-------- --------
Net Income $ 29,829 $ 30,496
======== ========
Per share data:
Basic Weighted Average $ 0.33 N/A
Shares Outstanding 91,629 N/A
</TABLE>
See notes to consolidated financial statements.
4
<PAGE>
CGB&L Financial Group, Inc.
Consolidated Income Statements (Unaudited)
For the three months ended December 30, 1999 and 1998
<TABLE>
<CAPTION>
------------------------------
For the 3 months ended Dec. 31
------------------------------
1999 1998
-------- --------
<S> <C> <C>
Interest Income
Loans receivable $140,709 $127,670
Investment securities 1,596 1,348
Deposits with financial institutions 17,195 15,267
-------- --------
Total interest income 159,500 144,285
Interest Expense
Deposits 68,656 67,448
FHLB advances 13,608 9,752
-------- --------
Total interest expense 82,264 77,200
-------- --------
Net Interest Income 77,236 67,085
Provision for Loan Loss 0 0
-------- --------
Net Interest Income After Provision for Loan Losses 77,236 67,085
-------- --------
Noninterest Income 622 1,575
-------- --------
Noninterest Expense
Salaries and Employee Benefits 40,358 37,638
Net occupancy and equipment expenses 2,051 841
Deposit Insurance Expense 766 944
Insurance expense 1,263 0
Other expenses 17,715 20,436
-------- --------
Total noninterest expense 62,153 59,859
-------- --------
Income Before Income Tax 15,705 8,801
Income tax expense 3,837 4,653
-------- --------
Net Income $ 11,868 $ 4,148
======== ========
Per share data:
Basic Weighted Average $ 0.13 $ 0.05
Shares Outstanding 90,561 91,345
</TABLE>
See notes to consolidated financial statements.
5
<PAGE>
CGB&L Financial Group, Inc.
Nine Month Consolidated Statements of Comprehensive Income (Unaudited)
<TABLE>
<CAPTION>
Nine Months Ended Nine Months Ended
December 31, 1999 December 31, 1998
----------------- -----------------
<S> <C> <C>
Net Income $29,829 $30,496
Other comprehensive income, net of tax
Unrealized gain (loss) on securities:
Unrealized holding gain (loss) arising
during the period (25,461) 41,469
Less: Reclassification adjustment
for gains included in net income 0 0
------- -------
Other comprehensive income (loss) (25,461) 41,469
------- -------
Comprehensive income $4,368 $71,965
======= =======
</TABLE>
CGB&L Financial Group, Inc.
Three Month Consolidated Statements of Comprehensive Income (Loss) (Unaudited)
<TABLE>
<CAPTION>
Three Months Ended Three Months Ended
December 31, 1999 December 31, 1998
----------------- -----------------
<S> <C> <C>
Net Income $11,868 $4,148
Other comprehensive income (loss)+A49, net of tax
Unrealized gain (loss) on securities:
Unrealized holding gain (loss) arising
during the period (12,501) 36,133
Less: Reclassification adjustment
for gains included in net income 0 0
------- -------
Other comprehensive income (loss) (12,501) 36,133
------- -------
Comprehensive income (loss) ($633) $40,281
======= =======
</TABLE>
See notes to consolidated financial statements.
6
<PAGE>
CGB&L Financial Group, Inc.
Consolidated Statement of Cash Flows
Nine Months Ended December 31, 1999 (Unaudited)
<TABLE>
<CAPTION>
----------- -----------
1999 1998
----------- -----------
<S> <C> <C>
Operating Activities
Net income $ 29,829 $ 30,496
Adjustments to reconcile net income to net
cash provided by operating activities
Depreciation 1,008 1,008
Compensation Expense related to ESOP & incentive 7,011 4,019
Net change in :
Other liabilities 3,723 5,960
Other assets 10,801 10,532
----------- -----------
Net cash provided by operating activities 52,372 52,015
----------- -----------
Investing Activities
Net change in interest-bearing deposit 297,000 (103,000)
Net change in loans (1,191,558 (110,110)
Purchase of premises and equipment (1,677) (1,811)
Purchase of FHLB stock 0 (8,900)
----------- -----------
Net cash used by investing activities (896,235) (223,821)
----------- -----------
Financing Activities
Net change in deposits 253,952 (156,239)
Payment of Dividend (19,800) 0
Issuance of Common Stock 0 620,103
Purchase of Treasury Stock (24,832)
Purchase of Stock for Incentive Plan (41,580)
Net change in short term debt 300,000
----------- -----------
Net cash provided by financing activities 467,740 463,864
----------- -----------
Net Change in Cash and Cash Equivalents (376,123) 292,058
Cash and Cash Equivalents, Beginning of Period 775,314 524,845
----------- -----------
Cash and Cash Equivalents, End of Period $ 399,191 $ 816,903
=========== ===========
Additional Cash Flows Information
Interest paid $ 238,242 $ 238,904
Income tax paid $ 15,658 $ 12,944
</TABLE>
See notes to consolidated financial statements.
7
<PAGE>
2
Notes to Consolidated Financial Statements
1. BACKGROUND INFORMATION
CGB&L Financial Group, Inc. (the "Company") was incorporated on May 21,
1998 and on September 22, 1998 acquired all of the outstanding shares
of common stock of Cerro Gordo Building and Loan, s.b. of Cerro Gordo,
(the "Bank") upon the Bank's conversion from a state chartered mutual
savings bank to a state chartered savings bank. The Company purchased
100% of the outstanding capital stock of the Bank using 50% of the net
proceeds from the Company's initial stock offering, which was completed
on September 22, 1998. The Company sold 99,000 shares of common stock
in the initial offering at $10 per share, including 7,919 shares
purchased by the Bank's Employee Stock Ownership Plan ("ESOP"). The
Bank acquired the ESOP shares with proceeds from a Company loan
totaling $79,190. The net proceeds of the offering totaled $699,293:
$990,000 less $290,707 in underwriting costs and other conversion
expenses.
The acquisition of the Bank by the Company was accounted for as a
"pooling-of-interests" under generally accepted accounting principles.
The application of the pooling-of-interests method records the assets
and liabilities of the merged companies on a historical cost basis with
no goodwill or other intangible assets being recorded.
2. STATEMENT OF INFORMATION FURNISHED
The accompanying unaudited consolidated financial statements have been
prepared in accordance with Form 10-QSB instructions and item 310 (b)
of Regulations S-B. In the opinion of management these statements
contain all adjustments necessary to present fairly the financial
position as of December 1999 and March 1999, the results of operations
for the nine months and three months ended December 1999 and December
1998, comprehensive income and the cash flows for the nine and three
months ended September 1999 and September 1998. All adjustments to the
financial statements were normal and recurring in nature. These results
have been determined on the basis of generally accepted accounting
principles. The results of operations for the nine months and three
months ended December 1999 are not necessarily indicative of the
results to be expected for the entire fiscal year.
The consolidated financial statements are those of the Company and the
Bank. These consolidated financial statements should be read in
conjunction with the audited financial statements and notes thereto
included in the Company's Annual Report to shareholders dated July 6,
1999.
PART I. FINANCIAL INFORMATION
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF FINANCIAL
CONDITION AND RESULTS OF OPERATION
CGB&L Financial Group, Inc. (the "Company") is the holding company for
Cerro Gordo Building and Loan, s.b. (the "Bank"). Prior to the Company's
acquisition of the Bank on September 22, 1998, the Company had no material
assets or operations. Accordingly, the following information reflects
management's discussion and analysis of the financial condition and
results of operations for the Bank at and for the period prior to
September 22, 1998 and the Company and its subsidiary thereafter.
8
<PAGE>
FINANCIAL CONDITION
Total assets increased $469,726 from March 31, 1999 to December 31, 1999
or 6.36% for the nine month period. This increase was attributable
primarily to increases in the loan portfolio offset by a decrease in cash
and cash equivalents, interest bearing time deposits, investment
securities and other assets. Net loans increased $1,191,558, cash and cash
equivalents decreased $376,123, interest-bearing deposits decreased
$297,000, investment securities decreased $38,577 and other assets
decreased $10,801.
The increase in net loans from March 31, 1999 to December 31, 1999 was the
result of increase in one-to-four family residential mortgage loans. This
growth was the result of management's continued emphasis on the Bank's
loan portfolio.
The Company experienced an increase in total deposits from March 31, 1999
to December 31, 1999 of $253,952 or 5.08%. Borrowings at Federal Home Loan
Bank of Chicago (FHLB) increased $300,000 and other liabilities decreased
$9,393. The rate of the FHLB borrowings is 5.03% and funds were used to
finance the growth in the loan portfolio.
In a private transaction, the Company repurchased 6,325 shares at
$10.50/share. The Company used 3,960 shares for the incentive plan and
2,365 shares were included as treasury stock. Total stockholders' equity
decreased $79,914 from March 31, 1999 to December 31, 1999; the decrease
summarized as follows:
<TABLE>
<CAPTION>
<S> <C>
Stockholder's equity, March 31, 1999........................... $1,667,578
Net Income (Loss).............................................. 29,829
Purchase of Treasury Stock..................................... (24,832)
Purchase of Unearned Plan Shares............................... (41,580)
Earned Incentive Plan Shares................................... 1,930
Decrease in unrealized gain on securities available for sale... (25,461)
Dividends Paid................................................. (19,800)
-----------
Stockholders' equity, December 31, 1999........................ $ 1,587,664
===========
</TABLE>
RESULTS OF OPERATIONS
NINE MONTHS COMPARISON
Net income was $667 less in the nine months ended December 31, 1999
compared to the same period in 1998, due to an increase in employee
compensation and expenses related to being a public company offset by an
increase in net interest income.
Net interest income was $45,559 higher in the nine months ended December
31, 1999 compared to the same period in 1998. Interest income was $45,475
higher, primarily due to increases in the mortgage loan portfolio.
Interest expense decreased by $84 in the period ended December 31, 1999
compared to the period ended December 31, 1998.
The provision for loan losses remained stable for the first nine months in
1999 compared to the same period in 1998. Management of the Bank believes
that the allowance for loan losses is sufficient based on information
currently available. No assurances can be made that future events or
conditions or regulatory directives will not result in increased
provisions for loan losses or additions to the Bank's allowance for loan
losses which may adversely affect net income.
Noninterest expense was $46,962 higher in the nine months ended December
31, 1999 compared to the same period in 1998. This was primarily
attributable to additional expenses related to being a public company and
an increase in employee compensation. The increase in employee
compensation is related to the ESOP and incentive plan shares recognition.
Page 9
<PAGE>
Income tax expense was $3,042 less in the nine months ended December 31,
1999 compared to the same period in 1998 due to a decrease in net income
for the nine months ended December 31, 1999. The effective tax rate is
estimated to be 24.9% in 1999 compared to 29.8% in 1998.
THREE MONTHS COMPARISON
Net income was $7,720 more in the three months ended December 31, 1999
compared to the same period in 1998, due to an increase of net interest
income offset by noninterest expenses related to the recognition of
incentive plan shares.
Net interest income was $10,151 higher in the three months ended December
31, 1999 compared to the same period in 1998. Interest income was $15,215
higher due primarily to increases in the mortgage loan portfolio. Interest
expense increased $5,064 in the period ended December 31, 1999 compared to
the period ended December 31, 1998.
Noninterest expense was $2,294 higher in the three months ended
December 31, 1999 compared to the same 1998 period primarily due to
$1,930 expense related to recognition of incentive plan shares.
Income tax expense was $816 less in the three months ended December 31,
1999 compared to the same 1998 period. The effective tax rate is
estimated to be 24.4% in 1999.
LIQUIDITY AND CAPITAL RESOURCES
The Bank's primary sources of funds are deposits, principal and interest
payments on loans and FHLB advances. While maturities and scheduled
amortizations of loans are predictable sources of funds, deposit flows and
mortgage prepayments are greatly influenced by general interest rates,
economic conditions, and competition. The Federal Deposit Insurance
Corporation ("FDIC"), the Company's and the Bank's primary regulator,
requires the Bank to maintain minimum levels of liquid assets. Currently,
the required ratio is 5%. The Bank's liquidity ratios were 15.32% and
29.63% at December 30, 1999 and March 31, 1999, respectively, well above
the required minimum.
A review of the Consolidated Statement of Cash Flows included in the
accompanying financial statement shows that the Company's cash and cash
equivalents ("cash") decreased $376,123 from March 31, 1999 to December
31, 1999. Cash and cash equivalent increased $292,058 from March 31, 1998
to December 31, 1998. During the first nine months of fiscal 1999, net
income, interest-bearing deposits, deposits and FHLB borrowings primarily
provided cash. During the nine months of fiscal 1998, the issuance of
common stock and net income provided cash. Cash was primarily used in 1999
to fund mortgage loans, repurchase stock and pay dividends. In 1998 cash
was primarily used to fund loans, invest in interest bearing time deposits
and for deposit withdrawals.
As of December 31, 1999, the Bank had outstanding commitments (including
undisbursed loan proceeds) of $356,323. The bank anticipates that it will
have sufficient funds available to meet its current loan origination
commitments. Certificates of deposit, which are scheduled to mature in one
year or less from December 31, 1999, total $2.1 million. Based upon the
Bank's experience, management believes that a significant portion of such
deposits will remain with the Bank.
Federally insured state-chartered banks are required to maintain minimum
levels of regulatory capital. Under current FDIC regulations, insured
state-chartered banks generally must maintain ( I) a ratio of Tier 1
leverage capital to total assets of at least 3.0% (4.0% to 5.0% for all
but the most highly rated banks) and (II) ratio of Tier 1 capital to risk
weighted assets of at least 4.0% and a ratio of total capital risk
weighted assets of at least 8.0%. At December 31, 1999, the Bank was in
compliance with applicable regulatory capital requirements as follows:
Tier 1 Capital to Risk Weighted Assets 31.40%
Tier 1 Capital to Total Assets 15.12%
Risk Based Capital to Risk Weighted Assets 32.30%
10
<PAGE>
RECENT ACCOUNTING PRONOUNCEMENTS
In June 1998, the Financial Accounting Standards Board ("FASB") issued
SFAS No. 133, "Accounting for Derivative Instruments and Hedging
Activities." This Statement requires companies to record derivatives on
the balance sheet at their fair value. Statement No. 133 also acknowledges
that the method of recording a gain or loss depends on the use of the
derivative.
The New Statement applies to all entities. If hedge accounting is elected
by the entity, the method of assessing the effectiveness of the hedging
derivative and the measurement approach of determining the hedge's
ineffectiveness must be established at the inception of the hedge.
Statement No. 133 amends Statement No. 52 and supercedes Statements No.
80, 105, and 119. Statement No. 107 is amended to include the disclosure
provisions about the concentrations of credit risk from Statement No. 105.
Several Emerging issues Task Force consensuses's are also changed or
modified by the provisions of Statement No. 133.
Statement No. 137 deferred the effective date of Statement No. 133 to all
fiscal years beginning after June 15, 2000. The Statement may not be
applied retroactively to financial statements of prior periods. The
Statement's adoption will have no material impact on the Corporation's
financial condition or result of operations.
Also in 1998, the FASB issued Statement No. 134 "Accounting for
Mortgage-Backed Securities Retained after the Securitization of Mortgage
Loans Held for Sale by a Mortgage Banking Enterprise." This statement
establishes accounting standards for certain activities of mortgage
banking enterprises and for other enterprises with similar mortgage
operations. This Statement amends SFAS No. 65 which as previously amended
by SFAS Nos. 115 and 125, required a mortgage banking enterprise to
classify a mortgage-backed security as a trading security following the
securitization of the mortgage loan held for sale. This Statement further
amends SFAS No. 65 to require that after the securitization of mortgage
loans held for sale, an entity engaged in mortgage banking activities must
classify the resulting mortgage-backed security or other retained
interests based on the entity's ability and intent to sell or hold those
investments.
The determination of the appropriate classification for securities
retained after the securitization of mortgage loans by a mortgage banking
enterprise now conforms to SFAS No. 115. The only new requirement is that
if an entity has a sales commitment in place, the security must be
classified into trading. This Statement is effective for the first fiscal
quarter beginning after December 15, 1998. The Statement's adoption had no
impact on the bank's financial condition and results of operations.
YEAR 2000 REPORT
The Company and its subsidiary, the Bank, completed all Phases of its Year
2000 preparedness assessment and adopted a detailed business resumption
contingency plan. During the initial phase, the Bank identified those
computer applications used to process information within the Bank
including accounting software used for loans and deposits. Each of the
companies providing these software programs assured the Bank in writing
that its programs were Year 2000 compliant. In addition, the Bank
contacted its principal external vendors and asked for assurance that they
were adequately addressing system and software issues related to Year
2000. Each vendor responded that they were Year 2000 ready. The Bank also
completed a review of its loan portfolio and determined that the Bank had
no significant loss exposure in the event a borrower's business was
interrupted as a result of a Year 2000 compliance problem. The Bank
completed testing of all mission critical systems. The Bank took steps to
educate the public about their Year 2000 preparedness. The Bank incurred
total costs of less than $1,000 with respect to the Year 2000 and has not
had, nor anticipates, any complications associated with the Year 2000
issue.
11
<PAGE>
Part II. Other information
Item l. Legal Proceedings
Not applicable
Item 2. Changes in Securities and Use of Proceeds
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
Subsequent Event: CGB&L Financial Group, Inc. Director Dale
C. Born, 68, of Cerro Gordo, died February 6, 2000. The Company
has a seven member staggered Board. Born's term was to expire in
2001. Dale became a director of the Savings Bank in 1993.
Item 6. Exhibits and Reports on Form 8-K
a. Exhibits
The following exhibits are filed as part of this report:
11.0 Computation of earnings per share
27. Financial Data Schedule
b. Report on Form 8-K
none
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.
Dated: February 14, 2000 By: /s/ Maralyn F. Heckman
(Authorized Signor)
President (Principal Executive Officer)
and Treasurer (Chief Financial Officer)
12
Exhibit 11.0 STATEMENT RE: COMPUTATION OF PER SHARE EARNINGS
For the Nine Months and Three Months Ended December 31, 1999 (UNAUDITED)
Statement regarding computation of earnings per share for the nine months ended
December 31, 1999.
Income Weighted Average Shares Per-Share Amount
------ ----------------------- ----------------
Net Income $29,829 $91,629 $0.33
------- ------- -----
Statement regarding computation of earnings per share for the three months ended
December 31, 1999.
Income Weighted Average Shares Per-Share Amount
------ ----------------------- ----------------
Net Income $11,868 $90,561 $0.13
------- ------- -----
For the Three Months Ended December 31, 1998 (UNAUDITED)
Statement regarding computation of earnings per share for the three months ended
December 31, 1998.
Income Weighted Average Shares Per-Share Amount
------ ----------------------- ----------------
Net Income $ 4,148 $91,345 $0.05
------- ------- -----
Note: Net earnings per share are computed based upon the weighted average common
equivalent shares outstanding for periods subsequent to the Bank's conversion to
a stock savings bank on September 22, 1998. Net earnings per share for the three
and nine months ended December 31, 1997 and the nine months ended December 31,
1998 are not meaningful.
<TABLE> <S> <C>
<ARTICLE> 9
<LEGEND>
This schedule contains summary financial information extracted from SEC
Form 10-QSB and is qualified in its entirety by reference to such financial
statements
</LEGEND>
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> MAR-31-2000
<PERIOD-END> DEC-31-1999
<CASH> 399,191
<INT-BEARING-DEPOSITS> 594,000
<FED-FUNDS-SOLD> 0
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 0
<INVESTMENTS-CARRYING> 173,250
<INVESTMENTS-MARKET> 173,250
<LOANS> 6,614,531
<ALLOWANCE> 32,700
<TOTAL-ASSETS> 7,852,458
<DEPOSITS> 5,249,246
<SHORT-TERM> 300,000
<LIABILITIES-OTHER> 102,092
<LONG-TERM> 600,000
0
0
<COMMON> 911
<OTHER-SE> 1,586,753
<TOTAL-LIABILITIES-AND-EQUITY> 7,852,458
<INTEREST-LOAN> 410,229
<INTEREST-INVEST> 4,500
<INTEREST-OTHER> 58,476
<INTEREST-TOTAL> 473,205
<INTEREST-DEPOSIT> 204,515
<INTEREST-EXPENSE> 238,988
<INTEREST-INCOME-NET> 234,217
<LOAN-LOSSES> 0
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 197,011
<INCOME-PRETAX> 39,731
<INCOME-PRE-EXTRAORDINARY> 39,731
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 29,829
<EPS-BASIC> .33
<EPS-DILUTED> 0
<YIELD-ACTUAL> 7.88
<LOANS-NON> 0
<LOANS-PAST> 137,507
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 32,700
<CHARGE-OFFS> 0
<RECOVERIES> 0
<ALLOWANCE-CLOSE> 32,700
<ALLOWANCE-DOMESTIC> 32,700
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
