UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 20549
FORM 10-Q
[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
OR
[ ] 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 000-27905
MFS FINANCIAL, INC.
- --------------------------------------------------------------------------------
(Exact name of small business issuer as specified in its charter)
Maryland 35-2085640
- --------------------------------------------------------------------------------
(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification Number)
110 East Charles Street, Muncie, Indiana 47305
- --------------------------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (765) 747-2800
--------------
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 report), and (2) has been subject to such filing
requirements for the past 90 days. Yes [X] No [ ]
The number of shares of the Registrant's common stock, without par value,
outstanding as of March 31, 2000 was 5,819,611.
<PAGE>
<TABLE>
<CAPTION>
FORM 10-Q
MFS Financial, Inc.
INDEX
Page
PART I -- FINANCIAL INFORMATION Number
<S> <C>
Item 1. Financial Statements
Consolidated Condensed Balance Sheets at
March 31, 2000 and December 31, 1999 3
Consolidated Condensed Statement of Income for the three months
ended March 31, 2000 and March 31, 1999 4
Consolidated Condensed Statement of Stockholders' Equity
for the three months ended March 31, 2000 5
Consolidated Condensed Statement of Cash Flows for the three months
ended March 31, 2000 and March 31, 1999 6
Notes to Unaudited Consolidated Condensed Financial Statements 7
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations 8
Item 3. Quantitative and Qualitative Disclosures about Market Risk 11
PART II -- OTHER INFORMATION
Item 1. Legal Proceedings 12
Item 2. Changes 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
Signature Page 13
</TABLE>
2
<PAGE>
PART I. FINANCIAL INFORMATION
ITEM 1. Financial Statements
<TABLE>
<CAPTION>
MFS FINANCIAL, INC. AND SUBSIDIARY
Consolidated Condensed Balance Sheet
(Unaudited)
March 31, December 31,
2000 1999
----------- -----------
<S> <C> <C>
Assets
Cash $ 13,247,907 $19,217,186
Interest-bearing deposits 277,310 765,945
-----------------------------
Cash and cash equivalents 13,525,217 19,983,131
Trading assets, at fair value 1,234,884
Investment securities:
Available for sale 32,098,803 29,598,800
Held to maturity 12,190,386 12,449,013
-----------------------------
Total investment securities 44,289,189 42,047,813
Loans 454,080,224 446,438,992
Allowance for loan losses (3,780,178) (3,652,073)
-----------------------------
Net loans 450,300,046 442,786,919
Premises and equipment 7,716,106 7,800,460
Federal Home Loan Bank of Indianapolis stock, at cost 5,338,500 5,338,500
Investment in limited partnerships 5,257,686 5,274,840
Cash surrender value of life insurance 10,926,957 10,806,957
Foreclosed real estate 1,697,039 728,737
Interest receivable:
Loans 2,237,822 2,134,656
Mortgage-backed securities 53,401 58,687
Investment securities and interest-bearing deposits 372,314 459,616
Core deposit intangibles and goodwill 1,408,043 1,466,928
Deferred income tax benefit 2,710,521 2,670,886
Other assets 1,562,617 1,730,426
-----------------------------
Total assets $547,395,458 $544,523,440
=============================
Liabilities
Deposits
Non-interest-bearing $ 18,866,928 $ 14,360,929
Interest bearing 360,011,929 350,243,469
-----------------------------
Total deposits 378,878,857 364,604,398
Federal Home Loan Bank Advances 59,789,384 72,289,384
Other Borrowings 1,768,354 2,608,354
Advances by borrowers for taxes and insurance 2,170,313 1,289,179
Interest payable 1,978,586 2,153,475
Other Liabilities 4,998,116 4,866,330
-----------------------------
Total liabilities 449,583,610 447,811,120
-----------------------------
Stockholders' Equity
Preferred stock, $.01 par value
Authorized and unissued --- 20,000,000 shares
Common stock, $.01 par value
Authorized --- 20,000,000 shares
Issued and outstanding --- 5,819,611 58,196 58,196
Additional paid-in capital 56,732,407 56,740,190
Retained earnings 45,747,930 44,647,767
Accumulated other comprehensive loss (356,399) (284,047)
Unearned employee stock ownership plan (ESOP) shares (4,370,286) (4,449,786)
-----------------------------
Total stockholders' equity 97,811,848 96,712,320
-----------------------------
Total liabilities and stockholders' equity $547,395,458 $544,523,440
=============================
</TABLE>
See notes to consolidated condensed financial statements.
3
<PAGE>
<TABLE>
<CAPTION>
MFS FINANCIAL, INC. AND SUBSIDIARY
Consolidated Condensed Statement of Income
(Unaudited)
Three Months Ended
March 31
----------------------------
2000 1999
---------- ----------
<S> <C> <C>
Interest Income
- ---------------
Loans receivable, including fees $8,705,620 $7,835,284
Trading account securities 8,192 6,706
Investment securities
Mortgage-backed securities available for sale 238,139 96,182
Federal Home Loan Bank stock 106,186 71,258
Other investments held to maturity 284,014 139,708
Other investments available for sale 181,805 108,872
Deposits with financial institutions 13,471 85,936
----------------------------
Total interest income 9,537,427 8,343,946
----------------------------
Interest Expense
- ----------------
Passbook savings 200,036 211,132
Certificates of deposit 3,279,727 3,339,597
Daily money market accounts 320,687 213,475
Demand and NOW acounts 121,268 161,759
Federal Home Loan Bank advances 809,974 665,038
Other interest expense 5,497 6,100
----------------------------
Total interest expense 4,737,189 4,597,101
----------------------------
Net Interest Income 4,800,238 3,746,845
Provision for loan losses 171,250 190,000
----------------------------
Net Interest Income After Provision
for Loan Losses 4,628,988 3,556,845
----------------------------
Other Income
- ------------
Service fee income 476,597 363,177
Net trading account profit (loss) 25,116 (12,109)
Equity in losses of limited partneships (2,547) (2,548)
Commissions 127,981 82,834
Increase in cash surrender value of life insurance 120,000 105,000
Other income 86,734 89,619
----------------------------
Total other income 833,881 625,973
----------------------------
Other Expenses
- --------------
Salaries and employee benefits 1,848,205 1,569,059
Net occupancy expenses 179,173 166,790
Equipment expenses 194,699 152,073
Data processing fees 128,284 131,013
Deposit insurance expense 19,998 55,000
Advertising and promotion 111,255 94,627
Other expenses 697,719 557,992
----------------------------
Total other expenses 3,179,333 2,726,554
----------------------------
Income Before Income Tax 2,283,536 1,456,264
Income tax expense 776,000 480,500
----------------------------
Net Income $1,507,536 $ 975,764
============================
Basic earnings per share $0.28
Diluted earnings per share $0.28
Dividends per share $0.07
</TABLE>
See notes to consolidated condensed financial statements.
4
<PAGE>
<TABLE>
<CAPTION>
MFS FINANCIAL, INC. AND SUBSIDIARY
Consolidated Condensed Statement of Stockholders' Equity
For the Three Months Ended March 31, 2000
(Unaudited)
Common Stock Accumulated
---------------------- Additional Other
Shares paid-in Comprehensive Retained Comprehensive
Outstanding Amount capital Income Earnings Loss
----------- ------ ---------- ------------- -------- -------------
<S> <C> <C> <C> <C> <C> <C>
Balances January 1, 2000 5,819,611 $58,196 $56,740,190 $44,647,767 $(284,047)
Comprehensive income
Net income for the period $1,507,536 1,507,536
Other comprehensive loss, net of tax
Unrealized losses on securities (72,352) (72,352)
----------
Comprehensive income $1,435,184
==========
ESOP shares earned (7,783)
Cash dividends ($.07 per share) (407,373)
----------------------------------------------------------------------------------------
Balances, March 31, 2000 5,819,611 $58,196 $56,732,407 $45,747,930 $(356,399)
========================================================================================
</TABLE>
Unearned
ESOP
shares Total
------------ -----------
Balances January 1, 2000 $(4,449,786) $96,712,320
Comprehensive income
Net income for the period 1,507,536
Other comprehensive loss, net of tax
Unrealized losses on securities (72,352)
Comprehensive income
ESOP shares earned 79,500 71,717
Cash dividends ($.07 per share) (407,373)
----------------------------------
Balances, March 31, 2000 $(4,370,286) $97,811,848
==================================
See notes to consolidated condensed financial statements.
5
<PAGE>
<TABLE>
<CAPTION>
MFS FINANCIAL, INC. AND SUBSIDIARY
Consolidated Condensed Statement of Cash Flows
(Unaudited)
Three Months Ended
March 31,
----------------------------------
2000 1999
---------- -----------
<S> <C> <C>
Operating Activities
- --------------------
Net income $1,507,536 $ 975,764
Adjustments to reconcile net income to net cash provided
by operating activities:
Provision for loan losses 171,250 190,000
Net loss on sale of real estate owned 22,819 20,939
Securities amortization, net (9,344)
ESOP shares earned 71,717 (2,093)
Equity in losses of limited partnerships 2,547 2,548
Amortization of net loan origination costs 372,804 181,044
Amortization of core deposit intangibles and goodwill 58,885 58,884
Depreciation and amortization 186,865 166,571
Deferred income tax 7,680
Change in
Trading account securities 1,234,884 (1,437,671)
Interest receivable (10,578) (61,976)
Other assets 167,810 690,569
Interest payable (174,889) (207,902)
Other liabilities 131,786 (60,722)
Increase in cash surrender value of life insurance (120,000) (105,000)
-----------------------------------
Net cash provided by operating activities 3,614,092 418,635
-----------------------------------
Investing Activities
- --------------------
Purchases of securities available for sale (3,142,910) (2,346,982)
Proceeds from maturities and paydowns of securities available for sale 544,096 458,700
Proceeds from sales of securities available for sale 1,502,885
Purchases of securities held to maturity (4,993,284)
Proceeds from maturities and paydowns of securities held to maturity 254,796 4,095,642
Net change in loans (9,294,573) (6,131,837)
Purchases of premises and equipment (102,510) (118,247)
Proceeds from real estate owned sales 280,393 62,049
Distribution from limited partnership 14,607 3,111
Other investing activities (34,125) (1,902)
-----------------------------------
Net cash used by investing activities (11,480,226) (7,469,865)
-----------------------------------
Financing Activities
- --------------------
Net change in:
Noninterest-bearing, interest bearing demand and savings deposits 2,616,842 (3,596,225)
Certificates of deposits 11,657,617 10,663,522
Short-term borrowings (840,000)
Repayment of note payable (30,679)
Proceeds from FHLB advances 58,500,000 16,000,000
Repayment of FHLB advances (71,000,000) (17,000,000)
Net change in advances by borrowers for taxes and insurance 881,134 801,263
Dividends paid (407,373)
-----------------------------------
Net cash provided by financing activities 1,408,220 6,837,881
-----------------------------------
Net Change in Cash and Cash Equivalents (6,457,914) (213,349)
Cash and Cash Equivalents, Beginning of Period 19,983,131 12,938,102
-----------------------------------
Cash and Cash Equivalents, End of Period $13,525,217 $12,724,753
===================================
Additional Cash Flows Information
Interest paid $ 4,917,050 $ 4,805,003
Income tax paid 256,000 147,300
Transfers from loans to foreclosed real estate 1,237,392 149,996
</TABLE>
See notes to consolidated condensed financial statements.
6
<PAGE>
MFS FINANCIAL, INC. AND SUBSIDIARIES
NOTES TO UNAUDITED CONSOLIDATED CONDENSED FINANCIAL
STATEMENTS
NOTE 1: Basis of Presentation
The consolidated financial statements include the accounts of MFS Financial,
Inc. (the "Company"), its wholly owned subsidiary, Mutual Federal Savings Bank,
a federally chartered savings bank ("Mutual Federal"), and Mutual Federal's two
wholly owned subsidiaries, First MFSB Corporation and Third MFSB Corporation. A
summary of significant accounting policies is set forth in Note 1 of Notes to
Financial Statements included in the December 31, 1999 Annual Report to
Shareholders. All significant inter-company accounts and transactions have been
eliminated in consolidation.
The interim consolidated financial statements have been prepared in accordance
with instructions to Form 10-Q, and therefore do not include all information and
footnotes necessary for a fair presentation of financial position, results of
operations and cash flows in conformity with generally accepted accounting
principles.
The interim consolidated financial statements at March 31, 2000, and for the
three months ended, March 31, 2000 and 1999 have not been audited by independent
accountants, but in the opinion of management, reflect all adjustments (which
include only normal recurring adjustments) necessary to present fairly the
financial position, results of operations and cash flows for such periods.
NOTE 2: Earnings Per Share
Earnings per share have been computed based upon the weighted average common and
common equivalent shares outstanding during the period subsequent to Mutual
Federal's conversion to a stock savings bank on December 29, 1999. Unearned
Employee Stock Ownership Plan shares have been excluded from the computation of
average common shares outstanding. For the three months ended March 31, 2000,
weighted average shares outstanding for basic and diluted earnings per share
were 5,368,312.
7
<PAGE>
ITEM 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations
GENERAL
MFS Financial, Inc., a Maryland Corporation (the "Company"), was organized in
September, 1999. On December 29, 1999, it acquired the common stock of Mutual
Federal Savings Bank ("Mutual Federal") upon the conversion of Mutual Federal
from a federal mutual savings bank to a federal stock savings bank.
Mutual Federal was originally organized in 1889 and currently conducts its
business from thirteen full service offices located in Delaware, Randolph, and
Kosciusko Counties, Indiana, with its main office located in Muncie. Mutual
Federal's principal business consists of attracting deposits from the general
public and originating fixed rate and adjustable rate loans secured primarily by
first mortgage liens on one-to- four family residential real estate. Mutual
Federal's deposit accounts are insured up to applicable limits by the SAIF of
the FDIC.
Mutual Federal offers a number of financial services, including: (1) one-to-four
family residential real estate loans; (2) commercial real estate loans; (3) real
estate construction loans; (4) land loans; (5) multi-family residential loans;
(6) consumer loans, including home equity loans, automobile loans, recreational
vehicle and boat loans; (7) commercial loans; (8) money market demand accounts
("MMDA's"); (9) savings accounts; (10) checking accounts; (11) NOW accounts; and
(12) certificates of deposit.
Mutual Federal currently owns two subsidiaries, First MFSB Corporation and Third
MFSB Corporation. The assets of First MFSB Corporation consist of an investment
in Family Financial Life Insurance Company. Family Financial is an Indiana stock
insurance company that primarily engages in retail sales of mortgage and credit
life insurance products in connection with loans originated by its shareholder
financial institutions. Third MFSB, which does business as Mutual Financial
Services, offers tax-deferred annuities, long-term health and life insurance
products. All securities related products and services made available through
Mutual Financial Services are offered by a third party independent
broker-dealer.
The Company's results of operations depend primarily upon the level of net
interest income, which is the difference between the interest income earned on
interest earning assets, such as loans and investments, and costs incurred with
respect to interest bearing liabilities, primarily deposits and borrowings.
Results of operations also depend upon the level of the Company's non-interest
income, including fee income and service charges, and the level of its
non-interest expense, including general and administrative expenses.
FORWARD LOOKING STATEMENT
This Quarterly Report on Form 10-Q ("Form 10-Q") contains statements which
constitute forward looking statement within the meaning of the Private
Securities Litigation Reform Act of 1995. These statements appear in a number
places in this Form 10-Q and include statements regarding the intent, belief,
outlook, estimate or expectations of the Company (as defined in the notes to the
consolidated condensed financial statements), its directors or its officers
primarily with respect to future events and the future financial performance of
the Company. Readers of this Form 10-Q are cautioned that any such forward
looking statements are not guarantees of future events or performance and
involve risks and uncertainties, and that actual results may differ materially
from those in the forward looking statements as a result of various factors. The
accompanying information contained in this Form 10-Q identifies important
factors tht could cause such differences. These factors include changes in
interest rates; loss of deposits and loan demand to other financial
institutions; substantial changes in financial markets; changes in real estate
values and the real estate market; or regulatory changes.
8
<PAGE>
FINANCIAL CONDITION
Assets totaled $547.4 million at March 31, 2000, an increase from December 31,
1999 of $2.9 million for an annualized growth rate of 2.1%. This growth occurred
in net loans, up $7.5 million from year-end 1999 primarily due to a $6.3 million
increase in consumer loans. Loan growth was funded by growth of deposits and a
reduction of cash and cash equivalents.
Deposits totaled $378.9 million at March 31, 2000 an increase of $14.3 million
or an annualized rate of 15.7% from December 31, 1999. Increases in short-term
savings and transaction type accounts account for $8.6 million of this growth.
Total borrowings decreased $13.3 million to $61.6 million, as a result of the
utilization of a portion of the proceeds from the stock sale and a reduction of
cash which had been held for Y2K purposes.
Stockholders' equity increased $1.1 million from $96.7 million at December 31,
1999 to $97.8 million at March 31, 2000. The increase was due to net income for
the quarter ended March 31, 2000 of $1.5 million and Employee Stock Ownership
Plan (ESOP) shares earned of $72,000. A cash dividend declared of $407,000 and
an increase in the unrealized loss on available for sale securities of $72,000
partially offset these increases.
Comparison of the operating results for the three months ended March 31, 2000
and 1999.
Net income was $1.5 million or 28 cents for both basic and diluted earnings per
share for the quarter ended March 31, 2000. This compared to net income for the
comparable period in 1999 of $976,000. The increase in earnings was primarily
due to an increase in net interest income partially offset by increases in
non-interest expenses and income tax expense. The annualized return on average
assets was 1.2% and .83% for the three months ended March 31, 2000, and 1999,
respectively.
Interest income increased $1.2 million or 14.3% from $8.3 million for the three
months ended March 31, 1999 to $9.5 million for the same period in 2000.
Interest expense increased $140,000 or 3.0% from $4.6 million for the three
months ended March, 1999, to $4.7 million for the same period in 2000. As a
result, net interest income for the three months ended March 31, 2000 increased
$1.1 million or 28.1% compared to the same period in 1999. The increase in net
interest income was due primarily to increases in the volume of average loans
receivable and the average investment securities available for sale. The
increase in average loans outstanding was due to increased loan demand. The
increase in investment securities available for sale was primarily attributable
to proceeds received in conjunction with the Company's stock issuance. Net
proceeds of the Company's stock issuance after cost and excluding the shares
issued for the ESOP were $49.9 million.
The Company's provision for loan losses for the three-month ended March 31, 2000
was $171,000 compared to $190,000 for the same period in 1999. Mutual Federal
reviews all loans on an individual basis when the loan reaches 90 days past due,
at which point they are put on non-accrual status. At March 31, 2000 and
December 31, 1999, respectively, non-accrual loans were $357,000 and $753,000.
The allowance for loan losses was $3.8 million or .83% of net loans and $3.7
million or approximately .82% of net loans at March 31, 2000 and December 31,
1999, respectively.
9
<PAGE>
Non-interest income increased $208,000, or 33.2% for the three months ended
March 31, 2000 compared to the same period in 1999 primarily due to transaction
account growth resulting in an increase in service fee income and commissions of
$158,000 and a gain of $25,000 on net trading account activity compared to a
loss of $12,000 for the three month period ended March 31, 1999.
Non-interest expense increased $452,000 or 16.6% for the three months ended
March 31, 2000 compared to the same period in 1999. Salaries and employee
benefits were $1.9 million for the three months ended March 31, 2000 compared to
$1.6 million for the 1999 period, an increase of $280,000 or 17.8%. This
increase resulted primarily from $72,000 of compensation expense related to the
ESOP, and the additions to staffing for a new in-store branch opened in 1999. In
addition, both the commercial and consumer lending staffs were expanded.
Other expenses also increased $210,000 for the three months ended March 31, 2000
compared to the same period in 1999. The increase in other expenses resulted
from nominal increase in a variety of expense categories. These increases were
partially offset by a $35,000 decrease in deposit insurance expense from the
three months ended March 31, 2000 compared to the same period of 1999, due to
rate reduction.
Income tax expense increased $296,000 for the three months ended March 31, 2000
compared to the same period in 1999. The increase was a result of increased
taxable income for the period.
Liquidity and Capital Resources
The standard measure of liquidity for savings associations is the ratio of cash
and eligible investments to a certain percentage of net withdrawable savings
accounts and borrowings due within the one-year. The minimum required ratio is
currently set by the Office of Thrift Supervision regulation at 4%. As of March
31, 2000 Mutual Federal had liquid assets of $41.4 million and a liquidity ratio
of 8.9%.
10
<PAGE>
ITEM 3 - Quantitative and Quantitative Disclosures about Market Risk
Presented below as of March 31, 2000 and 1999 is an analysis performed by the
OTS of Mutual Federal's interest risk as measured by changes in Mutual Federal's
net portfolio value ("NPV") for instantaneous and sustained parallel shifts in
the yield curve, in 100 basis point increments, up and down 300 basis points.
<TABLE>
<CAPTION>
March 31, 2000
Net Portfolio Value NPV as % of PV of Assets
Changes ------------------------------------------- ------------------------
In Rates $ Amount $ Change % Change NPV Ratio Change
- -------- -------- -------- -------- --------- ------
<S> <C> <C> <C> <C> <C>
+300 bp 43,810 -30,071 -41% 8.81% -496 bp
+200 bp 54,045 -19,837 -27% 10.59% -319 bp
+100 bp 64,236 -9,646 -13% 12.27% -151 bp
0 bp 73,882 13.77%
- -100 bp 81,808 7,926 11% 14.94% +116 bp
- -200 bp 86,534 12,652 17% 15.57% +179 bp
- -300 bp 90,081 16,200 22% 16.00% +222 bp
</TABLE>
<TABLE>
<CAPTION>
March 31, 1999
Net Portfolio Value NPV as % of PV of Assets
Changes ------------------------------------------- ------------------------
In Rates $ Amount $ Change % Change NPV Ratio Change
- -------- -------- -------- -------- --------- ------
<S> <C> <C> <C> <C> <C>
+300 bp 22,806 -20,653 -48% 5.12% -402 bp
+200 bp 30,679 -12,780 -29% 6.72% -241 bp
+100 bp 37,854 -5,605 -13% 8.11% -103 bp
0 bp 43,459 9.14%
- -100 bp 47,369 3,910 9% 9.81% +67 bp
- -200 bp 50,099 6,641 15% 10.24% +110 bp
- -300 bp 53,950 10,491 24% 10.85% +171 bp
</TABLE>
The analysis at March 31, 2000 indicates that there have been no material
changes in market interest rates for Mutual Federal's interest rate sensitivity
instruments which would cause a material change in the market risk exposures
which effect the quantitative and qualitative risk disclosures as presented in
item 7A of the Company's annual report on Form 10-K for the period ended
December 31, 1999.
11
<PAGE>
PART II. OTHER INFORMATION
Item 1. Legal Proceedings
None.
Item 2. Changes in Securities and use of Proceeds
None.
Item 3. Defaults Upon Senior Securities.
None.
Item 4. Submission of matters to Vote of Security Holders.
None.
Item 5. Other Information.
None.
Item 6. Exhibits and Reports on form 8-K.
(a) Exhibits 27. Financial Data Schedule
(b) No reports on form 8-K were filed during the quarter ended March 31,
1999.
12
<PAGE>
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
MFS Financial, Inc.
Date: May 12, 2000 By: /s/ R. Donn Roberts
-----------------------------------
R. Donn Roberts
President and Chief Executive
Officer
Date: May 12, 2000 By: /s/ Timothy J. McArdle
-----------------------------------
Timothy J. McArdle
Senior Vice President and Treasurer
13
<TABLE> <S> <C>
<ARTICLE> 9
<LEGEND>
This schedule contains summary financial information extracted from the
Consolidated Balance Sheet and the Consolidated Statement of Income filed as
part of the annual report on Form 10-K and is qualified in its entirety by
reference to such annual report on Form 10-K.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-2000
<PERIOD-END> MAR-31-2000
<CASH> 13,248
<INT-BEARING-DEPOSITS> 0
<FED-FUNDS-SOLD> 0
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 32,099
<INVESTMENTS-CARRYING> 12,190
<INVESTMENTS-MARKET> 11,760
<LOANS> 454,080
<ALLOWANCE> 3,780
<TOTAL-ASSETS> 547,395
<DEPOSITS> 378,879
<SHORT-TERM> 0
<LIABILITIES-OTHER> 9,147
<LONG-TERM> 61,557
0
0
<COMMON> 58
<OTHER-SE> 97,754
<TOTAL-LIABILITIES-AND-EQUITY> 547,395
<INTEREST-LOAN> 8,706
<INTEREST-INVEST> 810
<INTEREST-OTHER> 22
<INTEREST-TOTAL> 9,537
<INTEREST-DEPOSIT> 3,922
<INTEREST-EXPENSE> 815
<INTEREST-INCOME-NET> 4,800
<LOAN-LOSSES> 171
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 3,179
<INCOME-PRETAX> 2,284
<INCOME-PRE-EXTRAORDINARY> 1,508
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,508
<EPS-BASIC> .28
<EPS-DILUTED> .28
<YIELD-ACTUAL> 3.84
<LOANS-NON> 361
<LOANS-PAST> 55
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 3,846
<ALLOWANCE-OPEN> 3,652
<CHARGE-OFFS> 64
<RECOVERIES> 21
<ALLOWANCE-CLOSE> 3,780
<ALLOWANCE-DOMESTIC> 3,780
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 379
</TABLE>
