<PAGE>
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 0F 1934 FOR THE QUARTERLY PERIOD ENDED March 31, 1999
Commission file number:
FIRST COMMUNITY FINANCIAL CORPORATION
------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
NORTH CAROLINA 56-2119954
- -------------------------------- ---------------------------------------
(State or other jurisdiction of (I.R.S. Employer Identification Number)
incorporation or organization)
708 SOUTH CHURCH STREET, BURLINGTON, N.C. 27215
- -------------------------------------------------------------------------------
(Address of principal executive offices)
336-229-2744
- -------------------------------------------------------------------------------
(Registrant's telephone number, including area code)
NOT APPLICABLE
- -------------------------------------------------------------------------------
(Former name,former address and former fiscal year,if changed since last report)
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by section 13 or 15 (d) of the Securities Exchange Act of 1934
during the preceding 12 months (or for such shorter period that the registrant
was required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
Yes X No
------------ ------------
1,880,798 common shares, no par value, were outstanding as of June 21,1999.
<PAGE>
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
First Community Financial Corporation
Condensed Consolidated Balance Sheets
(dollars in thousands)
<TABLE>
<CAPTION>
March 31, 1999 December 31,1998
------------------ ----------------
Assets
<S> <C> <C>
Cash and cash equivalents $6,975 $6,907
Investment Securities:
Available for sale 15,187 16,477
Mortgaged-backed securities
Available for sale 13,374 14,628
FHLB, at cost which approximates market 1,369 1,369
Loans receivable held for sale 677
Loans receivable held for investment, net 130,673 127,230
Premisies and equipment 2,396 2,407
Other assets 4,022 3,918
------------------ ----------------
Total assets $174,672 $172,936
------------------ ----------------
Liabilities and Retained Income
Deposits:
Demand $17,305 $16,506
Savings 17,561 18,119
Large denomination certificates of deposit 19,231 18,506
Other certificates of deposit 88,155 87,286
------------------ ----------------
Total deposits 142,252 140,417
------------------ ----------------
Borrowed money 5,000 5,000
Other liabilities 4,138 4,362
------------------ ----------------
Total liabilities 151,390 149,779
------------------ ----------------
Retained income:
Retained earnings 23,345 23,010
Accumulated other comprehensive income (63) 147
------------------ ----------------
Total retained income 23,282 23,157
------------------ ----------------
Total liabilities and retained income $174,672 $172,936
------------------ ----------------
</TABLE>
See accompanying notes to condensed consolidated financial statements
1
<PAGE>
Item 1. Continued
First Community Financial Corporation
Condensed Consolidated Statements of Income
(dollars in thousands)
<TABLE>
<CAPTION>
Three Months Ended March 31,
---------------------------------------
1999 1998
------------------ ----------------
Interest income:
<S> <C> <C>
Interest and fees on loans $2,618 $2,409
Interest and dividends on investments 515 690
------------------ ----------------
Total interest income 3,133 3,099
------------------ ----------------
Interest expense:
Interest on deposits 1,570 1,669
Interest on borrowed money 68 92
------------------ ----------------
Total interest expense 1,638 1,761
------------------ ----------------
Net interest income before provision for loan losses 1,495 1,338
Provision for loan losses 90 100
------------------ ----------------
Net interest income 1,405 1,238
------------------ ----------------
Other income:
Total other operating income 257 119
General and administrative expenses:
Compensation and fringe benefits 726 477
Occupancy 62 75
Furniture and fixtures 85 25
Advertising 27 46
Data processing 39 37
Other 281 162
------------------ ----------------
Total general and administrative expenses 1,220 821
------------------ ----------------
Income before income taxes 443 536
Income taxes 108 186
------------------ ----------------
Net income $335 $350
------------------ ----------------
</TABLE>
See accompanying notes to condensed consolidated financial statements
2
<PAGE>
Item 1. Continued
First Community Financial Corporation
Condensed Consolidated Statements of Comprehensive Income
(dollars in thousands)
<TABLE>
<CAPTION>
Three Months Ended March 31,
----------------------------
1999 1998
-------- --------
<S> <C> <C>
Net income $ 335 $ 350
Unrealized gain (loss) on available for sale securities (217) (34)
Reclassification of net (gains) losses recognized in net income (101) (10)
Income taxes relating to unrealized gain on available 108 15
for sale securities
-------- --------
Other comprehensive income (loss) (210) (29)
-------- --------
Comprehensive income $ 125 $ 321
======== ========
</TABLE>
See accompanying notes to condensed consolidated financial statements
3
<PAGE>
Item 1. Continued
First Community Financial Corporation
Condensed Consolidated Statements of Cash Flows
(dollars in thousands)
<TABLE>
<CAPTION>
Three months ended
March 31,
1999 1998
----------- -----------
Cash flows from operating activities:
<S> <C> <C>
Net income $ 334,613 $ 349,613
Adjustments to reconcile net income to net cash provided by operating activities
Provision for loan losses 90,000 100,000
Depreciation 84,517 48,939
Accretion of discounts on securities, net (24,605) (33,758)
Provision for deferred income taxes (45,383) 186,361
Proceeds from sale of loans held for sale (8,498) 287,046
Net loss (gains) on sale of loans (6,769) (13,964)
Other operating activities (160,280) (44,918)
----------- -----------
Net cash provided by operating activities 263,595 879,319
----------- -----------
Investing activities:
Purchases of investment securities available for sale
Proceeds from sales of securities and mortgage-backed securities available for sale 2,236,112
Proceeds from maturities of securities available for sale 1,648,548
Proceeds from maturities of securities held to maturity 3,326,804
Proceeds from principal repayment of mortgage-backed securities held to maturity 431,373
Net increase in loans held for investment (4,194,435) (5,289,415)
Purchases of premises and equipment (73,136) (87,170)
----------- -----------
Net cash used in investing activities (2,031,459) 30,140
----------- -----------
Financing activities:
Net increase (decrease) in deposit accounts 1,835,495 (350,646)
Repayments of FHLB borrowings, net of proceeds (1,000,000)
----------- -----------
Net cash provided by financing activities 1,835,495 (1,350,646)
----------- -----------
Increase (decrease) in cash and cash equivalents 67,631 (441,187)
Cash and cash equivalents, beginning of year 6,907,124 5,870,727
----------- -----------
Cash and cash equivalents, end of period $ 6,974,755 $ 5,429,540
=========== ===========
</TABLE>
See accompanying notes to condensed consolidated financial statements
4
<PAGE>
Item 1. Continued
First Community Financial Corporation and Subsidiary
Notes to Condensed Consolidated Financial Statements
1. Basis of Presentation
The accompanying unaudited condensed consolidated financial statements have
been prepared in accordance with generally accepted accounting principles
for interim information and with the instructions to FORM 10-Q SB.
Accordingly, they do not include all of the information and footnotes
required by generally accepted accounting principles for complete financial
statements. In the opinion of management, all adjustments (consisting only
of normal recurring accruals) considered necessary for a fair presentation
have been included. Operating results for the periods presented are not
necessarily indicative of the results that may be expected for the year
ended December 31, 1999.
2. Conversion from Mutual to Stock form of Ownership
On June 14, 1999, members of Community Savings Bank, SSB eligible to vote
at a special meeting, voted to approve the conversion of Community
Savings Bank, SSB. The conversion involved the transformation of Community
Savings Bank, SSB from mutual to stock form, First Community's acquisition
of all of the outstanding capital stock of Community Savings Bank, SSB and
First Community's sale of its common stock to the depositors and borrowers
of Community Savings Bank, SSB and other persons who had the right to
purchase shares. The sale was completed June 21,1999, and First Community
Financial Corporation began trading on June 21,1999 on the NASDAQ national
markets exchange under the symbol "FCFN".
3. Analysis of Allowance for Loan Loss
<TABLE>
<CAPTION>
Three months ended March 31,
----------------------------
1999 1998
----------- -----------
<S> <C> <C>
Beginning balance $1,331 $ 781
Provision for loan loss 90 100
Net charge-offs 15 0
----------- ----------
Balance, end of period $1,406 $ 881
=========== ==========
Ratio of net charge-offs to average loans
outstanding 0.01% 0.00%
Ratio of allowance to total loans outstanding 1.07% 0.74%
at end of period
Ratio of allowance to total nonperforming
assets at end of period 297.25% 320.36%
</TABLE>
5
<PAGE>
PART I. FINANCIAL INFORMATION
Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations
Forward Looking Statements
Information set forth below contains certain forward-looking statements, which
are based on assumptions, and describes future plans, strategies and
expectations of First Community Financial Corporation (First Community). These
forward-looking statements are generally identified by use of the words
"believe", "expect", "intend", "anticipate", "estimate", "project", or similar
expressions. First Community's ability to predict results or the actual effect
of future plans and strategies is inherently uncertain. Factors which could have
a materially adverse effect on the operations of First Community and its wholly
owned subsidiary , Community Savings Bank SSB ("Community Savings") include, but
are not limited to, changes in: interest rates, general economic conditions,
legislation and regulation, monetary and fiscal policies of the U.S. Government
including policies of the U.S. Treasury and the Federal Reserve Board, the
quality or composition of the loan or investment portfolios, demand for loan
products, deposit flows, competition, demand for financial services in its
market area and accounting principles and guidelines. These risks and
uncertainties should be considered in evaluating forward-looking statements and
undue reliance should not be placed on such statements.
Financial Condition At March 31, 1999
Compared to December 31, 1998
Total assets increased 1% to $174.7 million at March 31, 1999, compared to
$172.9 million at December 31, 1998.
Loans, net of reserves increased 3.2% at March 31, 1999 to $131.3 million from
December 31, 1998 balance of $127.2 million. At March 31,1999, approximately
70.6% of the Community Savings' gross loan portfolio consisted of loans secured
by one- to- four family residential properties. At December 31, 1998, 75.1% of
gross loans were secured by 1-4 family residential properties. Loan production
continued to emphasize commercial and consumer credits in an effort to diversify
the loan portfolio and reduce the reliance on single family 1-4 residential
loans
Securities decreased 8.2% at March 31, 1999 to $28.5 million compared to the
December 31, 1998 balance of $31.1 million.
Deposits increased to $142.3 million at March 31, 1999 from $140.4 million at
December 31, 1998, an increase of 1.31%.
6
<PAGE>
Management's emphasis on building a solid net interest income stream via loan
portfolio growth is evidenced by the $4.1 million increase in net loans funded
by the $2.5 million reduction in debt securities and $1.8 million increase in
deposits for the three month period ended March 31, 1999.
Borrowed funds, collateralized through an agreement with the Federal Home Loan
Bank ("FHLB"), remained unchanged at $5 million at March 31, 1999. The FHLB
borrowings float with one-month LIBOR index and mature annually at September 30.
The borrowings are matched with a Collateralized Mortgage Obligation (CMO) in a
structured, leveraged, match funded arbitrage. The CMO floats at 95 basis points
over the one-month LIBOR index. The CMO collateralizes the FHLB borrowings.
Asset Quality
The Community Savings' non-performing assets (loans 90 days or more delinquent
and fore closed real estate and repossessed assets) were $473 thousand, or 0.27%
of total assets, at March 31, 1999, compared to $248 thousand, or 0.14% of total
assets, at December 31, 1998. Loans charged-off against the allowance for loan
losses for the three-month period ended March 31, 1999 totaled $15 thousand or
.01% of average loans outstanding.
Management performs a four-step procedure in determining the appropriate level
for the allowance for loan losses. First, at the end of each quarter, loan
department personnel perform a review of the bank's loan portfolio. Individual
loans are assigned an internal classification designation of unclassified,
substandard, doubtful, or loss based on historical performance and specific
circumstances known to the bank regarding the financial situation of the
customer. Next, impaired loans are identified and a determination is made as to
the necessity of creating a specific allowance. Any impairment allowance is
based on the expected cash flows and the collateral available. There were no
materially impaired loans at March 31,1999 and no specific impairment allowance
was necessary. Next, the substandard and doubtful classifications are analyzed
and a risk percentage is determined considering each type of loan and the
severity of any probable loss. All loans categorized as "loss" are fully
reserved. The final procedure is to assign risk percentages to unclassified
loans based on historical and industry information regarding probable, yet
unidentifiable, losses inherent in the portfolio. Industry factors are adjusted
to reflect individual bank circumstances. Since Community savings is entering
new lines of business with little experience to draw on in the areas of
commercial, construction and consumer lending, an entry period of higher than
industry norm loss is reflected in the risk percentages assigned these loan
categories.
In the opinion of management, the allowance for loan losses of $1.4 million at
March 31, 1999 or 1.07% of gross loans was adequate to cover probable losses.
7
<PAGE>
Results of Operation for the period ended March 31,1999 compared to March 31,
1998
Net income is influenced significantly by the performance of net interest
income. Net interest income is the difference between interest income (derived
from revenues generated from loans, investments and other earning-assets), and
interest expense (consisting principally of interest paid on deposits and
borrowings). Operations may be materially affected by national and international
economic conditions, monetary and fiscal policies of the Federal government, and
policies of regulatory authorities.
NET INCOME
Net income for the three-month period ended March 31, 1999 decreased 4.3% to
$335 thousand compared to net income for the three-month period ended March 31,
1998 of $350 thousand. The reduction in earnings was a result of increased
depreciation expenses related to replacing all in-house computer equipment for
Y2K purposes and increased compensation expenses incurred attracting, retaining
and hiring commercial bank experienced personnel.
INTEREST INCOME
Interest income increased 1.1% for the three months ended March 31, 1999. The
increase in interest income can be principally attributed to the 8.65% increase
in interest and fees on loans.
INTEREST EXPENSE
Interest expense decreased 7% for the three months ended March 31, 1999 compared
to the three months ended March 31,1998. The decrease in interest expense was a
result of 5.9% decrease in interest expense on deposits reflecting a moderately
lower interest rate environment and management's effort to refine
deposit-pricing schemes. The decrease in interest expense on FHLB borrowing
reflects a 12.2% balance decrease in outstanding borrowings from $5.7 million at
March 31,1998 to $5 million at March 31,1999 and a moderately lower interest
rate environment.
NET INTEREST INCOME
Net interest income before the provision for loan losses, for the three-month
period ended March 31, 1999, increased 11.7% or $156 thousand compared to the
three-month period ended March 31,1998. The emphasis placed on loan growth was
the primary ingredient in affecting the positive growth in net interest income.
8
<PAGE>
PROVISION FOR LOAN LOSSES
A provision of $90 thousand was added to the allowance for loan losses,
increasing the period end balance to $1.4 million or 1.07% of outstanding loans.
A provision of $100 thousand was added to the allowance for loan losses for the
period ending March 31, 1998. The increase to the allowance reflects the
significant change in the loan portfolio composition.
NON-INTEREST INCOME
Non-interest income increased $138 thousand or 116% to $257 thousand for the
three-month period ended March 31, 1999 compared to the three-month period ended
March 31,1998. Although management is encouraged by the increase in non-interest
income, continued emphasis will be placed on improving non-interest income
revenue. A wholly owned subsidiary of the Community Savings, Community Financial
Services, Inc., a retail securities broker and financial advisor, was formed in
December 1997, for the sole purpose of enhancing non-interest income. This newly
formed subsidiary contributed $31 thousand or 12% of the current period
non-interest income.
NON-INTEREST EXPENSES
Non-interest expenses increased 48.6% or $399 thousand for the three months
ended March 31, 1999 compared to the three-month period ended March 31,1998.
Approximately $60 thousand of additional expenses have been incurred related to
upgrading in-house computer equipment for preventative measures related to Y2K.
Compensation has increased $249 thousand in hiring, retaining and attracting
commercial bank personnel needed to implement the company's long-term
objectives.
INCOME TAXES
The income tax provision for the period ending March 31,1999 was $108,000, a
decrease of $78,000 from the prior year period provision of $186,000. The
decline in the tax provision is a result of a 17.4% decline in income before
income taxes and an increase in tax-exempt interest on state and municipal
securities of 2,395%.
9
<PAGE>
LIQUIDITY
The Company's policy is to provide adequate liquidity to meet continuing loan
demand and withdrawal requirements while paying normal operating expenses and
satisfying regulatory liquidity guidelines. Maturing securities, principal
repayments of loans and securities, deposits, income from operations and
borrowings are the main sources of liquidity. Short-term investments (overnight
investments with the Federal Home Loan Bank and Federal Funds Sold) and
short-term borrowings (Federal Home Loan Bank advances, Repurchase Agreements
and Federal Funds Purchased) are the primary cash management liquidity tools.
The investment portfolio provides secondary liquidity.
At March 31, 1999, the estimated market value of liquid assets (cash, cash
equivalents, and marketable securities) was approximately $35.4 million,
representing 20.4% of deposits and borrowed funds. As Community Savings
continues to grow its loan portfolio liquidity will continue to be leveraged.
The primary uses of liquidity are to fund loans, provide for deposit
fluctuations and invest in other non-loan earning assets when excess liquidity
is available. At March 31, 1999, outstanding off-balance sheet commitments to
extend credit in the form of loan originations totaled $10 million. Undrawn
lines of credit totaled $5.6 million. Management considers current liquidity
levels adequate to meet the Company's cash flow requirements.
CAPITAL
Retained income is derived primarily from the retention of prior period net
income. Retained income at March 31, 1999, was $23.3 million, an increase of
0.5% from $23.2 million at December 31, 1998 and an increase of 0.5% from
$23.1.million at March 31,1998. These totals include ($63,000), $147,000 and
$68,000, respectively, of accumulated other comprehensive income (loss) related
principally to unrealized gain (loss) on securities available for sale.
FDIC regulations require banks to maintain certain capital adequacy ratios,
leverage ratios and risk-based capital ratios. Banks supervised by the FDIC must
maintain a minimum leverage ratio of core (Tier I) capital to average adjusted
assets ranging from 3% to 5%. At March 31, 1999, Community Savings' ratio of
Tier I capital to average assets was 13.4%. The FDIC's risk-based capital
guidelines require banks to maintain risk-based capital to risk-weighted assets
of at least 8%. Risk-based capital for Community Savings is defined as Tier I
capital and the reserve for loan losses. At March 31, 1999, Community Savings
had a ratio of qualifying total capital to risk-weighted assets of 25.6%.
10
<PAGE>
First Community is also subject to capital adequacy guidelines of the Board of
Governors of the Federal Reserve (the "Federal Reserve Board"). Capital
requirements of the Federal Reserve Board are similar to those of the FDIC.
The First Community significantly exceeds regulatory capital requirements.
Management anticipates that the Company will continue to exceed capital adequacy
requirements without altering current operations or strategies.
Year 2000
Y2K has become a worldwide concern. The underlying cause of this problem rests
with antiquated computer programs identifying dates of calendar years with two
digits rather than four digits. Most old computer programs with date-sensitive
software may recognize the year 2000 as "00" and misinterpret the year as 1900.
This date misinterpretation could result in system failures or miscalculations
causing disruptions of operations, including temporary interruption of
utilities, telephone lines, inability to process transactions, generate
statements, or engage in normal business activities.
Community Savings retains the services of a third party data processing service
center to processes loan, deposit, general ledger, retail platform systems and
compliance data for the Bank. Community Savings in conjunction with its data
processing service center, conducted a Y2K test during October 1998 along with
eleven of the service center's other clients. Fifteen errors were detected
during the test. Fourteen of the errors were cosmetic, having to do with the
appearance of the year rather than then a true data error. The fourteen cosmetic
errors were corrected during the test period. The one actual Y2K error that was
reported, a General Ledger closeout of 1999 occurring in January 2000, was
repaired and successfully re-tested during a November 1998 test.
The Community Savings has replaced nearly all-existing software and 100% of all
hardware with year 2000 certified compliant systems. Several of the Bank's
telecommunications systems have been replaced with year 2000 compliant systems.
All mission critical functions have been tested. Operating plans are being
developed which would be implemented in the event power failures or failures in
communications equipment prevent use of computer systems serving Community
Savings or otherwise impair Community Savings operations. Management is in the
process of identifying customers who pose Y2K risks to the institution, and is
developing the necessary capabilities to adequately respond to the risks
identified.
The cost to bring all systems up to Y2K specifications are expected to total
$550,000 of which amount approximately $428,000 has been incurred. There can be
no guarantee that systems of other companies on which Community Savings relies
will be converted in a timely manner, or that Community Savings' actions will
effectively deal with all potential Year 2000 problems. Any such failures in
addressing potential Year 2000 problems could have a materially adverse effect
on the bank and on First Community.
11
<PAGE>
Recent Events
On June 21, 1999 First Community Financial Corporation, 100% owner of Community
Savings Bank, completed its initial public offering. In the offering 1,780798
shares of common stock were issued at the price of $15.00 per share. After the
offering, another 100,000 shares were issued by First Community to Community
Savings for $15.00 per share and the contributed to A charitable foundation. The
stock began trading on the Nasdaq national market June 22,1999 under the symbol
FCFN.
The Employee Stock Ownership Plan of Community Savings Bank was funded by a loan
from First Community Financial Corporation in the amount of $2,256,960 to
acquire 150,464 shares of First Community Financial Corporation common stock.
The terms of the loan include an amortization period not to exceed fifteen years
with an annual interest rate to float at 1% over the prime rate. The loan is to
be repaid from compensation expenses of Community Savings.
Part II - Other Information
Item 1 Legal proceedings.
None.
Item 2
Changes in Securities and Use of Proceeds.
(a) Not applicable
(b) Not applicable
(c) Not applicable
(d) Not applicable
Item 3
Defaults upon Senior Securities
Not applicable.
Item 4
Submission of Matters to a vote of securities holders.
None.
12
<PAGE>
Item 5
Other information.
Not applicable.
Item 6
Exhibits and reports on form 8-K.
(a) Exhibits
27.01 Financial Data Schedule
(b) Reports on Form 8-K.
None.
13
<PAGE>
SIGNATURES
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.
First Community Financial Corporation
-------------------------------------
Registrant
Date June 21,1999 /s/ Christopher B. Redcay
------------------------ -------------------------------------
Christopher B. Redcay
Treasurer and Chief Financial Officer
Date June 21,1999 /s/ W.R. Gillism
------------------------ -------------------------------------
W.R. Gilliam
President and Chief Executive Officer
14
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 9
<MULTIPLIER> 1,000
<S> <C> <C>
<PERIOD-TYPE> 3-MOS 3-MOS
<FISCAL-YEAR-END> DEC-31-1999 DEC-31-1998
<PERIOD-START> JAN-01-1999 JAN-01-1998
<PERIOD-END> MAR-31-1999 MAR-31-1998
<CASH> 3,457 3,085
<INT-BEARING-DEPOSITS> 3,518 3,822
<FED-FUNDS-SOLD> 0 0
<TRADING-ASSETS> 0 0
<INVESTMENTS-HELD-FOR-SALE> 0 0
<INVESTMENTS-CARRYING> 28,642 30,868
<INVESTMENTS-MARKET> 28,547 31,091
<LOANS> 132,756 128,561
<ALLOWANCE> 1,406 1,332
<TOTAL-ASSETS> 174,672 172,936
<DEPOSITS> 142,252 140,417
<SHORT-TERM> 5,000 5,000
<LIABILITIES-OTHER> 4,138 4,362
<LONG-TERM> 0 0
0 0
0 0
<COMMON> 0 0
<OTHER-SE> 23,282 23,157
<TOTAL-LIABILITIES-AND-EQUITY> 174,672 172,936
<INTEREST-LOAN> 2,618 2,409
<INTEREST-INVEST> 515 690
<INTEREST-OTHER> 0 0
<INTEREST-TOTAL> 3,133 3,099
<INTEREST-DEPOSIT> 1,570 1,669
<INTEREST-EXPENSE> 1,638 1,761
<INTEREST-INCOME-NET> 1,495 1,338
<LOAN-LOSSES> 90 100
<SECURITIES-GAINS> 101 10
<EXPENSE-OTHER> 1,220 821
<INCOME-PRETAX> 443 536
<INCOME-PRE-EXTRAORDINARY> 335 350
<EXTRAORDINARY> 0 0
<CHANGES> 0 0
<NET-INCOME> 335 350
<EPS-BASIC> 0 0
<EPS-DILUTED> 0 0
<YIELD-ACTUAL> 0.91 0.84
<LOANS-NON> 0 0
<LOANS-PAST> 384 275
<LOANS-TROUBLED> 91 0
<LOANS-PROBLEM> 1,165 0
<ALLOWANCE-OPEN> 1,331 781
<CHARGE-OFFS> 15 0
<RECOVERIES> 0 0
<ALLOWANCE-CLOSE> 1,406 881
<ALLOWANCE-DOMESTIC> 1,406 881
<ALLOWANCE-FOREIGN> 0 0
<ALLOWANCE-UNALLOCATED> 0 0
</TABLE>
