SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
(MARK ONE) FORM 10-QSB
X QUARTERLY REPORT UNDER SECTION 13 OR 15(d)
---- OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2000
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF
----- THE SECURITIES EXCHANGE ACT OF 1934 [NO FEE REQUIRED]
FOR THE TRANSITION PERIOD FROM _________TO_________
Commission File Number 000-26995
HCSB FINANCIAL CORPORATION
(Exact name of registrant as specified in its charter)
South Carolina 57-1079444
(State or other jurisdiction (I.R.S. Employer
of incorporation) Identification No.)
5201 BROAD STREET
LORIS, SC 29569
(Address of principal executive
offices, including zip code)
(843) 756-6333
(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
--- ---
Indicate the number of shares outstanding of each of the issuer's classes of
common stock as of the date of this filing.
1,002,770 SHARES OF COMMON STOCK, $0.01 PAR VALUE
PAGE 1 OF 14
EXHIBIT INDEX ON PAGE 2
1
<PAGE>
HCSB FINANCIAL CORPORATION
INDEX
<TABLE>
<CAPTION>
PART I. FINANCIAL INFORMATION Page No.
- ------------------------------
<S> <C> <C>
Item 1. Financial Statements (Unaudited)
Condensed Consolidated Balance Sheets - March 31, 2000 and December 31, 1999............................................3
Condensed Consolidated Statements of Income - Three months ended March 31, 2000 and 1999................................4
Condensed Consolidated Statement of Shareholders' Equity and Comprehensive Income -
Three months ended March 31, 2000...................................................................................5
Condensed Consolidated Statements of Cash Flows - Three months ended March 31, 2000 and 1999............................6
Notes to Condensed Consolidated Financial Statements....................................................................7
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations................................8-12
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K....................................................................................13-14
(a) Exhibits........................................................................................................13-14
(b) Reports on Form 8-K................................................................................................13
</TABLE>
2
<PAGE>
HCSB FINANCIAL CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
<TABLE>
<CAPTION>
(DOLLARS IN THOUSANDS) March 31, December 31,
2000 1999
------------------- -------------------
<S> <C> <C>
ASSETS:
Cash and cash equivalents:
Cash and due from banks $ 4,631 $ 5,708
Federal funds sold - 2,190
------------------- -------------------
4,631 7,898
Securities available-for-sale 23,478 23,892
Loans receivable 84,519 75,839
Less unearned income (29) (46)
Less allowance for loan losses (983) (922)
------------------- -------------------
Loans, net 83,507 74,871
Accrued interest receivable 1,356 1,204
Premises, furniture & equipment, net 4,673 4,417
Other assets 2,316 2,044
------------------- -------------------
Total assets $ 119,961 $ 114,326
=================== ===================
LIABILITIES AND SHAREHOLDERS' EQUITY:
Liabilities:
Deposits:
Non-interest bearing $ 9,127 $ 7,998
Interest bearing 87,221 86,831
------------------- -------------------
96,348 94,829
Accrued interest payable 327 403
Federal funds purchased 4,290 -
Advances from the Federal Home Loan Bank 10,000 10,000
Other liabilities 576 753
------------------- -------------------
Total liabilities 111,541 105,985
------------------- -------------------
SHAREHOLDERS' EQUITY:
Common stock, $0.01 par value, 10,000,000 shares
authorized, 1,002,770 shares issued and outstanding 10 5
Capital surplus 7,878 7,878
Accumulated other comprehensive income (loss) (734) (579)
Retained earnings 1,266 1,037
------------------- -------------------
Total shareholders' equity 8,420 8,341
------------------- -------------------
Total liabilities and shareholders' equity $ 119,961 $ 114,326
=================== ===================
</TABLE>
See notes to condensed consolidated financial statements.
3
<PAGE>
HCSB FINANCIAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
<TABLE>
<CAPTION>
(DOLLARS IN THOUSANDS) Three Months Ended March 31,
----------------------------------------
2000 1999
------------------ ------------------
<S> <C> <C>
INTEREST INCOME:
Loans, including fees $ 1,982 $ 1,398
Investment securities:
Taxable 322 253
Tax-exempt 49 27
Other interest income 37 33
------------------ ------------------
Total 2,390 1,711
------------------ ------------------
INTEREST EXPENSE:
Certificates of deposit $100M and over 258 152
Other deposits 820 575
Other interest expense 144 55
------------------ ------------------
1,222 782
------------------ ------------------
NET INTEREST INCOME 1,168 929
Provision for loan losses 61 60
------------------ ------------------
NET INTEREST INCOME AFTER
PROVISION FOR LOAN LOSSES 1,107 869
------------------ ------------------
OTHER OPERATING INCOME:
Service charges on deposit accounts 145 107
Credit life insurance commissions 33 33
Other operating income 26 24
------------------ ------------------
Total 204 164
------------------ ------------------
OTHER OPERATING EXPENSES:
Salaries and employee benefits 516 394
Net occupancy expense 65 43
Furniture and equipment expense 84 88
Other operating expenses 286 206
------------------ ------------------
Total 951 731
------------------ ------------------
INCOME BEFORE INCOME TAXES 360 302
Income tax provision 126 105
------------------ ------------------
NET INCOME $ 234 $ 197
================== ==================
BASIC EARNINGS PER SHARE $ .23 $ .20
DILUTED EARNINGS PER SHARE $ .23 $ .20
</TABLE>
See notes to condensed consolidated financial statements.
4
<PAGE>
HCSB FINANCIAL CORPORATION
CONDENSED CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY
FOR THE THREE MONTHS ENDED MARCH 31, 2000
(UNAUDITED)
<TABLE>
<CAPTION>
Accumulated
Common Stock Other Total
-------------------------- Capital Comprehensive Retained Shareholders'
(DOLLARS IN THOUSANDS) Shares Amount Surplus Income Earnings Equity
------------ ------------ ------------ ------------- ------------ --------
<S> <C> <C> <C> <C> <C> <C>
BALANCE,
DECEMBER 31, 1999 501,385 $ 5 $ 7,878 $ (579) $ 1,037 $8,341
Net income
for the period 234 234
Other comprehensive
income, net of tax (155) (155)
------
Comprehensive income 79
------
Two for one stock split
effected in the form of
a 100% stock dividend 501,385 5 (5) -
--------- ------------ ------------ ------------- -------- ------
BALANCE,
MARCH 31, 2000 1,002,770 $ 10 $ 7,878 $ (734) $ 1,266 $8,420
========= ============ ============ ============= ======== ======
</TABLE>
See notes to condensed consolidated financial statements.
5
<PAGE>
HCSB FINANCIAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
<TABLE>
<CAPTION>
Three Months Ended
(DOLLARS IN THOUSANDS) March 31,
----------------------------------------
2000 1999
------------------ ------------------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 234 $ 197
Adjustments to reconcile net income to
net cash provided by operating activities:
Depreciation 69 56
Provision for possible loan losses 61 60
Amortization less accretion on investments 4 3
Amortization of deferred loan costs 30 23
Loss (gain) on sale of premises and equipment 21 -
(Increase) decrease in interest receivable (152) (118)
Increase (decrease) in interest payable (76) 30
(Increase) decrease in other assets (181) (27)
Increase (decrease) in other liabilities (179) 116
------------------ ------------------
Net cash provided (used) by operating activities (169) 340
------------------ ------------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Net increase in loans to customers (8,727) (7,183)
Purchases of securities available-for-sale - (7,142)
Maturities of securities available-for-sale 164 3,493
Maturities of time deposits with other banks - 500
Purchases of premises and equipment (393) (67)
Proceeds from the sale of premises and equipment 47 -
Purchase of Federal Home Loan Bank stock - (3)
------------------ ------------------
Net cash used by investing activities (8,909) (10,402)
------------------ ------------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Net increase in deposits accounts 1,521 10,013
Increase (decrease) in short-term borrowings 4,290 (620)
Advances from Federal Home Loan Bank 5,000 -
Repayments of advances from Federal Home Loan Bank (5,000) -
Cash paid in lieu of fractional shares - (18)
------------------ ------------------
Net cash provided by financing activities 5,811 9,375
------------------ ------------------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (3,267) (687)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 7,898 3,233
------------------ ------------------
CASH AND CASH EQUIVALENTS, END OF PERIOD $ 4,631 $ 2,546
================== ==================
Cash paid during the period for:
Income taxes $ 345 $ 8
Interest $ 1,298 $ 752
</TABLE>
See notes to condensed consolidated financial statements.
6
<PAGE>
HCSB FINANCIAL CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
NOTE 1 - BASIS OF PRESENTATION
The accompanying consolidated financial statements have been prepared in
accordance with the requirements for interim financial statements and,
accordingly, they are condensed and omit disclosures which would substantially
duplicate those contained in the most recent annual report to shareholders. The
financial statements as of March 31, 2000 and for the interim periods ended
March 31, 2000 and 1999 are unaudited and, in the opinion of management, include
all adjustments (consisting of normal recurring accruals) considered necessary
for a fair presentation. The financial information as of December 31, 1999 has
been derived from the audited financial statements as of that date. For further
information, refer to the financial statements and the notes included in HCSB
Financial Corporation's 1999 Annual Report.
NOTE 2 - COMPREHENSIVE INCOME
The components of other comprehensive income and related tax effects are as
follows:
<TABLE>
<CAPTION>
Quarter Ended March 31,
--------------------------------------
2000 1999
------------------- ----------------
(DOLLARS IN THOUSANDS)
<S> <C> <C>
Unrealized holding gains (losses) on available-for-sale securities $ (246) $ (34)
Reclassification adjustment for losses (gains) in realized income - -
------------------- ----------------
Net unrealized gains (losses) (246) (34)
Tax effect 91 12
------------------- ----------------
Net-of-tax amount $ (155) $ (22)
=================== ================
</TABLE>
Accumulated other comprehensive income consists solely of the unrealized gain on
securities available for sale, net of the deferred tax effects.
7
<PAGE>
HCSB FINANCIAL CORPORATION
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
The following is a discussion of the Company's financial condition as of March
31, 2000 compared to December 31, 1999, and the results of operations for the
three months ended March 31, 2000 compared to the three months ended March 31,
1999. These comments should be read in conjunction with the Company's condensed
consolidated financial statements and accompanying footnotes appearing in this
report. This report contains "forward-looking statements" relating to, without
limitation, future economic performance, plans and objectives of management for
future operations, and projections of revenues and other financial items that
are based on the beliefs of the Company's management, as well as assumptions
made by and information currently available to the Company's management. The
words "expect," "estimate," "anticipate," and "believe," as well as similar
expressions, are intended to identify forward-looking statements.
RESULTS OF OPERATIONS
NET INTEREST INCOME
For the three months ended March 31, 2000, net interest income increased
$239,000, or 25.73%, over the same period in 1999. Interest income from loans,
including fees, increased $584,000, or 41.77%, from the three months ended March
31, 1999 to the three months ended March 31, 2000 as demand for loans in the
Company's marketplace continued to grow. The development of the Company's
branches in Conway and North Myrtle Beach contributed primarily to this growth.
Also contributing to the overall increase in net interest income was an increase
of $91,000 in income from investment securities. Interest expense for the three
months ended March 31, 2000 was $1,222,000 compared to $782,000 for the same
period in 1999. The net interest margin realized on earning assets was 3.85% for
the three months ended March 31, 2000, as compared to 4.05% for the same period
in 1999.
PROVISION AND ALLOWANCE FOR LOAN LOSSES
The provision for loan losses is the charge to operating earnings that
management believes is necessary to maintain the allowance for possible loan
losses at an adequate level. For the three months ended March 31, 2000, the
provision charged to expense was $61,000 as compared to the provision of $60,000
charged to expense during the three months ended March 31, 1999. There are risks
inherent in making all loans, including risks with respect to the period of time
over which loans may be repaid, risks resulting from changes in economic and
industry conditions, risks inherent in dealing with individual borrowers, and,
in the case of a collateralized loan, risks resulting from uncertainties about
the future value of the collateral. The Company maintains an allowance for loan
losses based on, among other things, historical experience, an evaluation of
economic conditions, and regular reviews of delinquencies and loan portfolio
quality. Management's judgment about the adequacy of the allowance is based upon
a number of assumptions about future events which it believes to be reasonable
but which may not prove to be accurate. Thus, there is a risk that charge-offs
in future periods could exceed the allowance for loan losses or that substantial
additional increases in the allowance for loan losses could be required.
Additions to the allowance for loan losses would result in a decrease of the
Company's net income and, possibly, its capital.
8
<PAGE>
HCSB FINANCIAL CORPORATION
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS -- continued
NONINTEREST INCOME
Noninterest income during the three months ended March 31, 2000 was $204,000, an
increase of $40,000, or 24.39%, from the comparable period in 1999. The increase
is primarily a result of an increase in service charges on deposit accounts from
$107,000 at March 31, 1999 to $145,000 at March 31, 2000. This change is a
result of an increase in deposit accounts over the two periods. Deposits at
March 31, 1999 were $79,983,000 compared to $96,348,000 at March 31, 2000.
NONINTEREST EXPENSE
Total noninterest expense for the three months ended March 31, 2000 was
$951,000, or 30.10% higher than the three months ended March 31, 1999. The
primary reason for the $220,000 increase in noninterest expense over the same
period in 1999 was attributable to salaries and employee benefits, which
increased $122,000, or 30.96% over the same period in 1999. This increase was
largely the result of an increase in personnel in management and support
functions.
INCOME TAXES
The income tax provision for the three months ended March 31, 2000 was $126,000
as compared to $105,000 for the same period in 1999. The effective tax rate was
35.00% for the quarter ending March 31, 2000 and 34.69% for the quarter ending
March 31, 1999.
NET INCOME
Net income for the quarter ended March 31, 2000 increased by 18.78%, or $37,000,
over the same period in 1999.
ASSETS AND LIABILITIES
During the first three months of 2000, total assets increased $5,635,000, or
4.93%, when compared to December 31, 1999. The primary reason for this increase
in assets was an increase in loans of $8,680,000 during the first three months
of 2000. It is typical for the Company to have an increase in loans, especially
in the area of agricultural loans, during this time of year. As a partial offset
to this growth in loans, investment securities decreased $414,000 and federal
funds sold decreased $2,190,000. The Company also decreased cash and due from
bank accounts by $1,077,000, or 18.87%. During this same time period, deposits
increased $1,519,000, or 1.60%. This increase in deposits was primarily the
result of an increase of $1,129,000, or 14.12%, in non-interest bearing deposits
during the first three months of 2000.
9
<PAGE>
HCSB FINANCIAL CORPORATION
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS -- continued
LOANS
As noted above, gross loans increased by $8,680,000, or 11.45%, during the first
quarter of 2000. This growth is primarily attributable to the Company's
historical seasonal increase in agricultural credits as well as an expansion of
the loan portfolio in North Myrtle Beach and Conway markets in which the Company
opened branches in October 1997 and February 1998, respectively. Balances within
the major loans receivable categories as of March 31, 2000 and December 31, 1999
are as follows:
<TABLE>
<CAPTION>
March 31, December 31,
(DOLLARS IN THOUSANDS) 2000 1999
-------------------- --------------------
<S> <C> <C>
Real estate - construction and land development $ 4,248 $ 3,983
Real estate - other 28,947 26,601
Agricultural 8,803 5,961
Commercial and industrial 25,914 22,796
Consumer 16,416 16,193
Other, net 191 305
-------------------- --------------------
$ 84,519 $ 75,839
==================== ====================
</TABLE>
RISK ELEMENTS IN THE LOAN PORTFOLIO
The following is a summary of risk elements in the loan portfolio:
<TABLE>
<CAPTION>
March 31,
---------------------------------------------
(DOLLARS IN THOUSANDS) 2000 1999
-------------------- --------------------
<S> <C> <C>
Loans: Nonaccrual loans $ 52 $ 289
Accruing loans more than 90 days past due $ 5 $ 16
Loans identified by the internal review mechanism:
Criticized $ 502 $ 742
Classified $ 862 $ 799
</TABLE>
Activity in the Allowance for Loan Losses is as follows:
<TABLE>
<CAPTION>
March 31,
---------------------------------------------
(DOLLARS IN THOUSANDS) 2000 1999
-------------------- --------------------
<S> <C> <C>
Balance, January 1, $ 922 $ 880
Provision for loan losses for the period 61 60
Net loans charged off for the period - (20)
-------------------- --------------------
Balance, end of period $ 983 $ 920
==================== ====================
Gross loans outstanding, end of period $ 84,519 $ 71,758
Allowance for Loan Losses to
loans outstanding 1.16% 1.28%
</TABLE>
10
<PAGE>
HCSB FINANCIAL CORPORATION
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS -- continued
DEPOSITS
At March 31, 2000, total deposits increased by $1,519,000, or 1.60%, from
December 31, 1999. This growth was primarily in the area of non-interest bearing
deposits, which increased by 14.12%. During this quarter, the Company elected to
allow the run-off of several large, secured certificates of deposit due to the
cost thereof and placed emphasis on the increase in core, commercial deposits.
Balances within the major deposit categories as of March 31, 2000 and December
31, 1999 are as follows:
<TABLE>
<CAPTION>
March 31, December 31,
(DOLLARS IN THOUSANDS) 2000 1999
-------------------- --------------------
<S> <C> <C>
Non-interest bearing demand deposits $ 9,127 $ 7,998
Interest bearing demand deposits 10,097 8,238
Savings and money market deposits 18,944 18,832
Certificates of deposit 58,180 59,761
-------------------- --------------------
$ 96,348 $ 94,829
==================== ====================
</TABLE>
ADVANCES FROM THE FEDERAL HOME LOAN BANK
Advances from the Federal Home Loan Bank totaled $10,000,000 at March 31, 2000.
Of this total, $5,000,000 bears interest at a fixed rate of 4.41% and matures in
2003. The remaining $5,000,000 bears interest at a fixed rate of 5.92% and
matures in 2010. The option to call all $10,000,000 of these advances can be
exercised in 2000 and 2001. The Federal Home Loan Bank exercised its call option
on a $5,000,000 advance in February 2000, and the Company then obtained the
second advance noted above which matures in 2010.
LIQUIDITY
Liquidity needs are met by the Company through scheduled maturities of loans and
investments on the asset side and through pricing policies on the liability side
for interest-bearing deposit accounts and borrowings from the Federal Home Loan
Bank. The level of liquidity is measured by the loans-to-total borrowed funds
ratio, which was at 76.39% at March 31, 2000 and 72.35% at December 31, 1999.
Securities available-for-sale, which totaled $23,478,000 at March 31, 2000,
serve as a ready source of liquidity. The Company also has lines of credit
available with correspondent banks to purchase federal funds for periods from
one to sixteen days. At March 31, 2000, unused lines of credit totaled
$3,200,000.
CAPITAL RESOURCES
Total shareholders' equity increased from $8,341,000 at December 31, 1999 to
$8,420,000 at March 31, 2000. The increase of $79,000 is attributable to
earnings for the period of $234,000. However, earnings were partially offset by
the negative charge to equity of $155,000 relating to the change in fair value
of investment securities. In addition, in January 2000 the Company declared a
two for one stock split in the form of a 100% stock dividend payable on March
15, 2000. There was no effect on net equity as a result of this stock split.
11
<PAGE>
HCSB FINANCIAL CORPORATION
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS -- continued
CAPITAL RESOURCES -- continued
Bank holding companies, such as the Company, and their banking subsidiaries are
required by banking regulators to meet certain minimum levels of capital
adequacy which are expressed in the form of certain ratios. Capital is separated
into Tier 1 capital (essentially common shareholders' equity less intangible
assets) and Tier 2 capital (essentially the allowance for loan losses limited to
1.25% of risk-weighted assets). The first two ratios, which are based on the
degree of credit risk in the Company's assets, provide the weighting of assets
based on assigned risk factors and include off-balance sheet items such as loan
commitments and stand-by letters of credit. The ratio of Tier 1 capital to
risk-weighted assets must be at least 4.0% and the ratio of total capital (Tier
1 capital plus Tier 2 capital) to risk-weighted assets must be at least 8.0%.
The capital leverage ratio supplements the risk-based capital guidelines. Banks
and bank holding companies are required to maintain a minimum ratio of Tier 1
capital to adjusted quarterly average total assets of 3.0%.
The following table summarizes the Company's risk-based capital at March 31,
2000:
(DOLLARS IN THOUSANDS)
Shareholders' equity $ 9,154
Less: intangibles -
--------------------
Tier 1 capital 9,154
Plus: allowance for loan losses (1) 983
--------------------
Total capital $ 10,137
====================
Risk-weighted assets $ 92,423
====================
Risk based capital ratios
Tier 1 9.90%
Total capital 10.97%
Leverage ratio 7.91%
(1) limited to 1.25% of risk-weighted assets
REGULATORY MATTERS
From time to time, various bills are introduced in the United States Congress
with respect to the regulation of financial institutions. Certain of these
proposals, if adopted, could significantly change the regulation of banks and
the financial services industry. The Company cannot predict whether any of these
proposals will be adopted or, if adopted, how these proposals would affect the
Company.
12
<PAGE>
HCSB FINANCIAL CORPORATION
PART II - OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
27. Financial Data Schedule
(b) Reports on Form 8-K - No reports on Form 8-K were filed during the quarter
ended March 31, 2000.
Items 1, 2, 3, 4 and 5 are not applicable.
SIGNATURE
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.
By: /s/ JAMES R. CLARKSON
---------------------
James R. Clarkson
President
Date: May 12, 2000 By: /s/ LORETTA B. GERALD
---------------------
Loretta B. Gerald
Assistant Vice President & Cashier
(Principal Accounting Officer)
<TABLE> <S> <C>
<ARTICLE> 9
<S> <C>
<FISCAL-YEAR-END> DEC-31-2000
<PERIOD-START> JAN-1-2000
<PERIOD-END> MAR-31-2000
<PERIOD-TYPE> 3-MOS
<CASH> 4,631
<INT-BEARING-DEPOSITS> 0
<FED-FUNDS-SOLD> 0
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 23,478
<INVESTMENTS-CARRYING> 0
<INVESTMENTS-MARKET> 0
<LOANS> 84,519
<ALLOWANCE> 983
<TOTAL-ASSETS> 119,961
<DEPOSITS> 96,348
<SHORT-TERM> 4,290
<LIABILITIES-OTHER> 903
<LONG-TERM> 10,000
0
0
<COMMON> 10
<OTHER-SE> 8,410
<TOTAL-LIABILITIES-AND-EQUITY> 119,961
<INTEREST-LOAN> 1,982
<INTEREST-INVEST> 371
<INTEREST-OTHER> 37
<INTEREST-TOTAL> 2,390
<INTEREST-DEPOSIT> 1,078
<INTEREST-EXPENSE> 1,222
<INTEREST-INCOME-NET> 1,168
<LOAN-LOSSES> 61
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 951
<INCOME-PRETAX> 360
<INCOME-PRE-EXTRAORDINARY> 360
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 234
<EPS-BASIC> 0.23
<EPS-DILUTED> 0.23
<YIELD-ACTUAL> 3.85
<LOANS-NON> 52
<LOANS-PAST> 5
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 1,362
<ALLOWANCE-OPEN> 922
<CHARGE-OFFS> 4
<RECOVERIES> 4
<ALLOWANCE-CLOSE> 983
<ALLOWANCE-DOMESTIC> 983
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
