FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
[ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2000
------------------------------------------
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
------------------- --------------------
Commission File Number 0-10974
-------
FIRST PULASKI NATIONAL CORPORATION
----------------------------------------------------------
(Exact name of registrant as specified in its charter)
Tennessee 62-1110294
- --------------------------------------------------------------------------------
(State or other jurisdiction (IRS Employer
of incorporation) Identification No.)
206 South First Street, Pulaski, Tennessee 38478
- ------------------------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number: 931-363-2585
---------------------
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 latest practicable date:
Common Stock, $1.00 par value -- 1,546,147 Shares Outstanding
at April 30, 2000.
<PAGE>
PART I - FINANCIAL INFORMATION
------------------------------
Item 1. Financial Statements.
<TABLE>
<CAPTION>
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
FIRST PULASKI NATIONAL CORPORATION AND SUBSIDIARIES
March 31, December 31,
ASSETS 2000 1999
------ -------------- ------------
<S> <C> <C>
Cash and due from banks $10,120,105 $12,120,521
Federal funds sold 10,094,991 6,722,897
-------------- ------------
Cash and cash equivalents 20,215,096 18,843,418
Securities available for sale 82,246,751 45,608,982
Securities held to maturity 0 29,348,246
Net loans and leases 170,558,713 171,895,733
Bank premises and equipment 7,071,847 7,128,207
Accrued interest receivable 3,400,015 3,529,106
Prepayments and other assets 3,389,786 3,030,935
Other real estate owned 115,615 99,185
-------------- ------------
TOTAL ASSETS $286,997,823 $279,483,812
============== ============
LIABILITIES
-----------
Deposits
Non-interest bearing balances $39,719,479 $36,117,830
Interest bearing balances 206,489,497 202,492,439
-------------- ------------
246,208,976 238,610,269
Other borrowed funds 1,802,556 1,849,090
Accrued taxes 568,474 130,687
Accrued interest on deposits 1,832,682 1,806,079
Accrued profit sharing expense 110,621 114,309
Other liabilities 280,104 301,382
-------------- ------------
TOTAL LIABILITIES 250,803,413 242,811,816
-------------- ------------
STOCKHOLDERS' EQUITY
- -----------------------
Common Stock, $1.00 par; authorized 10,000,000
shares; 1,576,480 and 1,583,961 shares issued
and outstanding, respectively 1,576,480 1,583,961
Capital Surplus 6,927,771 7,338,740
Retained Earnings 29,045,167 28,663,995
Accumulated other comprehensive income, net
of tax respectively in 2000 and 1999 (1,355,008) (914,700)
--------------- -----------
TOTAL STOCKHOLDERS' EQUITY 36,194,410 36,671,996
--------------- -----------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $286,997,823 $279,483,812
=============== ===========
</TABLE>
<PAGE>
PART I - FINANCIAL INFORMATION
------------------------------
Item 1. Financial Statements. (Continued)
<TABLE>
<CAPTION>
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
FIRST PULASKI NATIONAL CORPORATION AND SUBSIDIARIES
For Three Months Ended
March 31,
----------------------
2000 1999
---- ----
<S> <C> <C>
INTEREST INCOME:
Loans, including
fees $4,440,684 $4,223,342
Investment securities 1,160,219 1,037,142
Federal funds sold 104,193 188,747
----------- ----------
5,705,096 5,449,231
INTEREST EXPENSE:
Interest on deposits:
NOW accounts 107,521 103,729
Savings and MMDA 185,366 182,118
Time 2,095,754 1,965,244
Borrowed funds 29,783 32,604
----------- ----------
2,418,424 2,283,695
----------- ----------
NET INTEREST INCOME 3,286,672 3,165,536
Loan loss provision 158,924 164,288
----------- ----------
NET INTEREST INCOME
AFTER PROVISION FOR
LOAN LOSSES 3,127,748 3,001,248
----------- ----------
OTHER INCOME:
Service charges on
deposit accounts 477,847 417,518
Other service
charges and fees 93,712 88,626
Security gains
(losses) (21,143) 0
Other 58,519 32,292
----------- ---------
608,935 538,436
----------- ---------
<PAGE>
PART I - FINANCIAL INFORMATION
------------------------------
Item 1. Financial Statements. (Continued)
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
FIRST PULASKI NATIONAL CORPORATION AND SUBSIDIARIES (UNAUDITED)
For Three Months Ended
March 31,
----------------------
2000 1999
---- ----
OTHER EXPENSES:
Salaries and
employee benefits 1,162,410 1,124,573
Occupancy, net 236,367 207,695
Furniture and
equipment 157,158 164,068
Advertising and
public relations 121,784 93,050
Other operating 485,435 711,619
---------- ----------
2,163,154 2,301,005
---------- ----------
Income before
income taxes $1,573,529 $1,238,679
Applicable income
taxes 546,000 419,117
----------- ----------
NET INCOME $1,027,529 $819,562
=========== ==========
PER SHARE DATA:
Net income per share:
Basic $0.65 $0.52
Diluted $0.65 $0.52
Dividends per share $0.41 $0.41
Number of shares 1,577,830 1,573,982
========== ==========
</TABLE>
<PAGE>
PART I - FINANCIAL INFORMATION
------------------------------
Item 1. Financial Statements. (Continued)
<TABLE>
<CAPTION>
STATEMENT OF STOCKHOLDER'S EQITY
FIRST PULASKI NATIONAL CORPORATION AND SUBSIDIARIES (UNAUDITED)
For the Three Months Ended March 31, 2000
Unrealized
Gains/<Losses>
Common Capital Retained on Securities Total
Stock Surplus Earnings Net of Taxes
-----------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Balance, December 31,
1999 $1,583,961 $7,338,740 $28,663,995 ($914,700) $36,671,996
Comprehensive Income:
Net Income 1,027,529
Net change in
unrealized gains on
securities, net of
tax of $226,895 (440,308)
Comprehensive Income 587,221
Cash Dividends
($0.41 per share) (646,357) (646,357)
Common Stock Issued 2,250 65,850 68,100
Common Stock Retired (9,731) (476,819) (486,550)
---------- ---------- ----------- ----------- ------------
Balance,
March 31, 2000 $1,576,480 $6,927,771 $29,045,167 ($1,355,008) $36,194,410
============ =========== =========== =========== ============
</TABLE>
<PAGE>
PART I - FINANCIAL INFORMATION
------------------------------
Item 1. Financial Statements. (Continued)
<TABLE>
<CAPTION>
CONSOLIDATED STATEMENTS OF CASH FLOWS
FIRST PULASKI NATIONAL CORPORATION AND SUBSIDIARIES (UNAUDITED)
For Three Months Ended
March 31,
2000 1999
---- ----
<S> <C> <C>
Cash Flows From Operating Activities:
Net Income $1,027,529 $819,562
Adjustments to Reconcile Net Income
to Net Cash Provided by Operating Activities:
Provision for loan losses 158,924 164,288
Depreciation of premises and equipment 189,405 174,554
Amortization and accretion of investment
securities, net 31,170 27,602
Deferred income tax expense (benefit) 19,702 (34,260)
Security (gains) losses, net 21,143 4,362
(Gains) losses from sale of other assets 9,971 (3,071,629)
(Gains) losses from sale of other real estate (3,954) 2,868,050
(Increase) decrease in interest receivable 129,018 130,839
(Increase) decrease in prepayments/other (151,379) 912,312
Increase (decrease) in accrued interest payable 26,603 (117,131)
Increase (decrease) in accrued taxes 384,887 228,548
Increase (decrease) in other liabilities 29,195 (32,947)
------------ ------------
Net Cash From Operating Activities 1,872,214 2,074,150
Cash Flows from Investing Activities:
Proceeds from maturity of investment
securities 620,000 6,755,406
Proceeds from sale of investment securities 4,401,162 0
Proceeds from sale of other real estate 70,119 188,620
Purchase of investment securities (13,009,551) (12,041,328)
Net decrease in loans 1,072,740 1,727,304
Capital expenditures (142,371) (155,130)
Proceeds from sale of other assets 0 18,254
------------ ------------
Net Cash Used by Investing Activities (6,987,901) (3,506,874)
Cash Flows From Financing Activities:
Net increase in deposits 7,598,707 6,660,303
Cash dividends paid (646,357) (645,367)
Proceeds from issuance of common stock 68,100 14,550
Payments to repurchase shares (486,551) 0
Proceeds from borrowings 0 0
Borrowings repaid (46,534) (43,714)
------------ ------------
Net Cash From Financing Activities 6,487,365 5,985,772
------------ ------------
Net Increase in Cash and Cash Equivalents 1,371,678 4,553,048
Cash and Cash Equivalents at Beginning of Period 18,843,418 22,397,144
------------ ------------
Cash and Cash Equivalents at End of Period $20,215,096 $26,950,192
============ ============
</TABLE>
<PAGE>
PART I - FINANCIAL INFORMATION
------------------------------
Item 1. Financial Statements. (Continued)
The interim financial statements furnished under this item reflect
all adjustments which are, in the opinion of management, necessary for
a fair presentation of the results of operations for the interim periods
presented. All such adjustments are of a normal recurring nature.
Item 2. Management's Discussion and Analysis of Financial Condition
and Result of Operations.
The following analysis should be read in conjunction with the
financial statements set forth in Part I, Item 1, immediately preceding
this section.
Reference is made to the report of the registrant on Form 10-K
for the year ending December 31, 1999, which report was filed with the
Securities and Exchange Commission on or about March 31, 2000.
This Form 10-Q contains certain forward-looking statements
regarding, among other things, the anticipated financial and operating
results of the registrant. Investors are cautioned not to place undue
reliance on these forward-looking statements, which speak only as of
the date hereof. The registrant undertakes no obligation to publicly
release any modifications or revisions of these statements to reflect
events or circumstances occurring after the day hereof, or to reflect
the occurrence of unanticipated events.
In connection with the "safe harbor" provisions of the Private
Securities Litigation Reform Act of 1995, the registrant cautions
investors that future financial and operating results may differ
materially from those projected in forward-looking statements made by,
<PAGE>
PART I - FINANCIAL INFORMATION
------------------------------
Item 2. Management's Discussion and Analysis of Financial Condition
and Result of Operations. (Continued)
or on behalf of, the registrant. Such forward-looking statements
involve known and unknown risks and uncertainties, including, but not
limited to, adverse changes in interest rates, bad debt of a material
amount and the loss of key personnel. These risks and uncertainties
may cause the actual results or performance of the registrant
to be materially different from any future results or
performance expressed or implied by such forward-looking statements.
(a) Liquidity
Liquidity has been defined as the ability to fund increases in
loan demand or to compensate for decreases in deposits and other
sources of funds, or both. Maintenance of adequate liquidity is an
essential component of the financial planning process. The objective
of asset/liability management is to provide an optimum balance of
safety, liquidity and earnings. The registrant seeks to generate
adequate cash flows to meet its needs without sacrificing income or
taking undue risks. Cash and cash equivalents increased $1,371,678
as of the end of the first quarter in 2000 as compared to the first
quarter of 1999 due primarily to an excess of deposit growth over
loan demand.
Marketable investment securities, particularly those of short
maturities, are the principal source of asset liquidity. Securities
maturing in one year or less amounted to approximately $9,245,000 at
March 31, 2000, representing 11.3 percent of the investment securities
<PAGE>
PART I - FINANCIAL INFORMATION
------------------------------
Item 2. Management's Discussion and Analysis of Financial Condition
and Result of Operations. (Continued)
portfolio as compared to the 21.1 percent level of one year earlier.
Management classifies all of the investment portfolio in the
available-for-sale category and reports these securities at fair value.
Management does not anticipate the sale of a material amount of
investment securities classified as available-for-sale in the forsee-
able future. However, these securities may be sold in response to
changes in interest rates, changes in prepayment risk, the need to
increase regulatory capital, or asset/liability strategy.
Other sources of liquidity include maturing loans and federal funds
sold.
The registrant knows of no unusual demands, commitments, or
events which could adversely impact the liquidity of the registrant.
(b) Capital Adequacy
The Federal Reserve Board, the Office of the Comptroller of the
Currency and the FDIC have issued risk-based capital guidelines for U.S.
banking organizations. These guidelines provide a uniform capital frame-
work that is sensitive to differences in risk profiles among banks.
Under these guidelines, total capital consists of Tier I capital
(core capital, essentially stockholders' equity) and Tier II capital
(supplementary capital, including certain qualifying debt instruments
and a part of the allowance for possible loan losses). Assets are
assigned risk weights ranging from 0 percent to 100 percent depending
on the level of credit risk normally associated with such assets.
<PAGE>
PART I - FINANCIAL INFORMATION
------------------------------
Item 2. Management's Discussion and Analysis of Financial Condition
and Result of Operations. (Continued)
Off-balance sheet items (such as commitments to make loans) are also
included in assets through the use of conversion factors established
by regulators and are assigned risk weights in the same manner as
on-balance sheet items. Banking institutions are expected to maintain
a Tier I capital to risk-weighted assets ratio of at least 4.00
percent, a total capital (Tier I plus Tier II) to total risk-weighted
assets ratio of at least 8.00 percent, and a Tier I capital to total
assets ratio (leverage ratio) of at least 3.00 percent. The
following table sets out the appropriate regulatory standards as well
as First Pulaski National Corporation's actual ratios at March 31,
2000 and December 31, 1999.
<TABLE>
<CAPTION>
March 31, December 31,
2000 1999
------------ ------------
(in thousands of dollars)
<S> <C> <C>
Tier I Capital to Risk-Weighted Assets:
Tier I capital 37,550 37,614
Risk-weighted assets 208,978 203,379
Tier I capital to risk-weighted assets 17.97% 18.49%
Regulatory requirement 4.00% 4.00%
Total Capital to Risk-Weighted Assets:
Total capital (Tier I plus Tier II) 40,165 40,160
Risk-weighted assets 208,978 203,379
Total capital to risk-weighted assets 19.22% 19.75%
Regulatory requirement 8.00% 8.00%
Tier I Capital to Total Assets (Leverage Ratio)
Tier I capital 37,550 37,614
Total assets 286,997 279,483
Tier I capital to total assets 13.08% 13.46%
Regulatory requirement 3.00% 3.00%
</TABLE>
<PAGE>
PART I - FINANCIAL INFORMATION
------------------------------
Item 2. Management's Discussion and Analysis of Financial Condition
and Result of Operations. (Continued)
(c) Results of Operations
Net income of the registrant was $1,027,529 in the first three
months of 2000. This amounted to an increase of $207,967, or 25.4
percent, compared to the first three months of 1999. Net income was
higher as compared to the same period last year largely due to an
approximately $226,000 decrease in operating expenses, as discussed
below.
Net interest income, the largest component of earnings for the
registrant, is the difference between income earned on loans and
investments and interest paid on deposits and other sources of funds.
The net interest income, exclusive of the provision for loan losses,
of the registrant for the three month period ending March 31, 2000
increased by $121,136, or 3.8 percent, as compared to the same period
in 1999, mainly due to an increase in interest and fee income on loans
and an increase in interest income on investment securities. Interest
income on federal funds sold was lower as compared to same period
last year. Total interest expense was higher as compared to the period
ending March 31, 1999 primarily because of an increase in interest
paid on time deposits.
Total other expenses decreased $137,851, or 6.0 percent, for the
three months ending March 31, 2000 as compared to same period last year
primarily due to decreased other operating costs. These costs for 1999
included a loss from the uninsured portion of an insurance claim for
<PAGE>
PART I - FINANCIAL INFORMATION
------------------------------
Item 2. Management's Discussion and Analysis of Financial Condition
and Result of Operations. (Continued)
misappropriated funds and additional costs involving pending litigation.
Part II, Item 1 of this report discusses legal proceedings in more
detail.
The loan loss provision for the three months ended March 31,
2000, decreased $5,364, or 3.3 percent, over the same period in 1999.
Management considers the levels of, and trends in delinquencies and
nonaccurals, as well as trends in loan portfolio volume, maturity,
and composition when setting the allowance level.
Income before taxes increased by $334,850 or 27.0 percent as
compared to the same period from the prior year. The increase in
applicable income taxes for the first quarter of 1999 was $126,883 or
30.3 percent.
On a per share basis, net income was $.65 per share based on
1,577,830 shares for the first three months of 2000 as compared to
$.52 per share on 1,573,982 shares for the first three months of 1999.
Net income per share on a diluted basis was $.65 per share for the first
three months of 2000 as compared to $.52 per share on a diluted basis
for the first three months of 1999.
Non-performing assets at December 31, 1999 included $99.2 thousand
in other real estate owned, $3,262.2 thousand in non-accrual loans, and
$26.7 thousand in loans past due ninety days or more as to interest or
principal payment. Additionally, there were no restructured loans at
year-end. At March 31, 2000, the corresponding figures were $115.6
<PAGE>
PART I - FINANCIAL INFORMATION
------------------------------
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations. (Continued)
thousand in other real estate owned, $2,731.4 thousand in non-accrual
loans, 89.8 thousand in loans past due ninety days or more, and no loans
restructured. Nonaccrual loans in both periods are primarily the result of
the default on the loans to persons and entities related to the Bank's
former CEO.
The registrant has computed allowances for loan losses which
management believes to be sufficient. The allowance for loan losses
has increased 19.5 thousand since December 31, 1999. The total allowance
for loan losses is 2858.0 thousand as of March 31, 2000, and is deemed
sufficent by management to cover potential losses in the loan portfolio.
<PAGE>
PART I - FINANCIAL INFORMATION
------------------------------
Item 3. Quantitative and Qualitative Disclosures About Market Risks.
The registrant's primary component of market risks is interest
rate volatility. Fluctuations in interest rates will ultimately impact
both the level of income and expense recorded on a large portion of the
registrant's assets and liabilities, and the market value of all
interest-earning assets and interest-bearing liabilities, other than
those which possess a short term to maturity. Based upon the nature of
the registrant's operations, the registrant is not subject to foreign
currency exchange or commodity price risk.
Interest rate risk management focuses on the earnings risk
associated with changing interest rates. Management seeks to maintain
profitability in both immediate and long term earnings through funds
management and interest rate risk management. The registrant's rate
sensitive position has an important impact on earnings. Management of
the registrant meets regularly to analyze the rate sensitivity position,
focusing on the spread between the cost of funds and interest yields
generated primarily through loans and investments.
There have been no material changes in reported market risks
during the three months ended March 31, 2000.
<PAGE>
PART II - OTHER INFORMATION
------------------------------
Item 1. Legal Proceedings.
The registrant and its subsidiaries are involved, from time to time,
in ordinary routine litigation incidental to the banking business.
Neither the registrant nor its subsidiaries is involved in any material
pending legal proceedings, except as follows:
The registrant's wholly-owned subsidiary, First National Bank of
Pulaski (the "Bank") filed suits in Giles County, Tennessee, Chancery Court
against Carroll M. Curry, John T, Curry, Connie Curry, Cathy Curry, C&C
Partnership and C&T Partnership (the "Curry Debtors") to collect
promissory notes on which such persons are liable as makers or guarantors.
The Curry Debtors filed a counter-complaint against the Bank and
subsequently against the registrant alleging (i) that the Bank knew or
should have known of certain activities of Mike Curry, the Bank's former
Chairman and Chief Executive Officer, and that the Bank had a duty to
inform the Curry Debtors of these activities, (ii) that the Bank was negligent
and reckless in placing Mike Curry in a position to commit fraud on the
Curry Debtors and recklessly and fraudulently concealed Mike Curry's fraudulent
conduct from the Curry Debtors. The Curry Debtors filed a counter-complaint
against the Bank seeking $8 million in compensatory and $20 million in
punitive damages. The lawsuits were removed to the United States District
Court for the Middle District of Tennessee. The Court dismissed the
defendants' third party complaint against all officers and employees of the
registrant and the Bank except one. The registrant, the Bank, and the
defendants executed a written settlement agreement resolving all claims
<PAGE>
PART II - OTHER INFORMATION
---------------------------
Item 1. Legal Proceedings. (Continued)
between the parties. As part of the settlement, the registrant, the Bank
and the defendants agreed to submit a joint motion asking that the litigation
between them be dismissed with prejudice. The Court entered an order
dismissing the case as to these parties on May 3, 2000.
In April 1999, AmSouth Bank served a complaint on the Bank, Robert
M. Curry, Deborah C. Curry, John T. Curry, Carroll M. Curry, Johnnie M.
Curry, C & C Partnership, Curry Farms, Curry Brothers and Susan R Limor,
Chapter 7 Trustee for Robert M. Curry. The complaint sought to recover
a judgement on various promissory notes executed by some or all members
of the named Curry parties. The complaint also alleged that the Bank
engaged in tortious misconduct in its dealings with the Curry family and
breached certain presentment and transfer warranties pursuant to the
Uniform Commercial Code in connection with the negotiation and transfer
of several loan proceed checks. In addition, AmSouth sought to equitably
subordinate any and all claims of the Bank against Robert M. Curry and
his bankruptcy estate and to subordinate any liens or security interests
held by the Bank in connection with claims against Robert M. Curry. The
Bank filed an answer vigorously contesting the allegations asserted by
AmSouth Bank. AmSouth Bank and the Bank have executed a written
settlement agreement resolving all claims in this litigation, one against
the other, however the settlement agreement remains in escrow and the
settlement has not officially occurred. As currently drafted, the
settlement calls for the Bank to purchase shares of stock held by
AmSouth Bank as collateral. Under the terms of the settlement, as
<PAGE>
PART II - OTHER INFORMATION
---------------------------
Item 2. Legal Proceedings. (Continued)
currently drafted, the Bank would pay AmSouth Bank nothing other than
the purchase price for the stock held by AmSouth as collateral. While the
registrant believes that the settlement of the AmSouth proceeding will occur,
there can be no assurances that the matter will be finally settled in
accordance with the terms of the settlement agreement as currently drafted
or that a settlement will actually be reached and the case dismissed.
<PAGE>
Item 2. Changes in Securities and Use of Proceeds
None
Item 3. Defaults Upon Senior Securities
None
Item 4. Submission of Matters to a Vote of Security Holders.
None
Item 5. Other Information
Item 6. Exhibits and Reports on Form 8-K.
(a) Following the signature page of this report on Form 10-Q is
an Index of Exhibits listed according to the numbers assigned to such
exhibits as shown on Table II of Regulation S-K.
(b) No current reports on Form 8-K have been filed during the
first quarter of 2000.
<PAGE>
SIGNATURES
----------
Pursuant to the requirements of Section 13 or 15 (d) 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.
FIRST PULASKI NATIONAL CORPORATION
Date: May 15, 2000 /s/ James T. Cox
---------------- ---------------------------------------
James T. Cox, President and Chief
Executive Officer
Date: May 15, 2000 /s/ Harold Bass
---------------- ---------------------------------------
Harold Bass, Secretary/Treasurer
(The Corporation's Principal Financial
Officer and Principal Accounting
Officer)
<PAGE>
INDEX TO EXHIBITS FOR THE FIRST PULASKI NATIONAL CORPORATION
------------------------------------------------------------
FORM 10-Q FOR THE QUARTER ENDED MARCH 31, 2000
--------------------------------------------------
(11) Statement regarding computation of per share earnings
(27) Financial Data Schedules
EXHIBIT 11
COMPUTATION OF PER SHARE EARNINGS OF
------------------------------------
FIRST PULASKI NATIONAL CORPORATION
----------------------------------
Computation of per share earnings relative to the common capital
stock of First Pulaski National Corporation is calculated by dividing
the net income of the registrant by the weighted average of the then
outstanding shares of common capital stock ($1.00 par value) during
the quarter.
For the quarter ended March 31, 2000, 1,577,830 shares were used
in the computation; 1,573,982 shares were used in the computation for
the quarter ended March 31, 1999.
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 9
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
COMPANY'S 10-Q FOR PERIOD ENDING MARCH 31, 2000 AND IS QUALIFIED IN
ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS AND THE NOTES
THERETO.
</LEGEND>
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-2000
<PERIOD-END> MAR-31-2000
<CASH> 10,120,105
<INT-BEARING-DEPOSITS> 0
<FED-FUNDS-SOLD> 10,094,991
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 82,246,752
<INVESTMENTS-CARRYING> 0
<INVESTMENTS-MARKET> 0
<LOANS> 173,416,733
<ALLOWANCE> 2,858,020
<TOTAL-ASSETS> 286,997,824
<DEPOSITS> 246,208,976
<SHORT-TERM> 0
<LIABILITIES-OTHER> 2,791,881
<LONG-TERM> 1,802,556
0
0
<COMMON> 1,576,480
<OTHER-SE> 34,617,930
<TOTAL-LIABILITIES-AND-EQUITY> 286,997,823
<INTEREST-LOAN> 4,440,684
<INTEREST-INVEST> 1,160,219
<INTEREST-OTHER> 104,193
<INTEREST-TOTAL> 5,705,096
<INTEREST-DEPOSIT> 2,388,641
<INTEREST-EXPENSE> 2,418,424
<INTEREST-INCOME-NET> 3,286,672
<LOAN-LOSSES> 158,924
<SECURITIES-GAINS> (21,143)
<EXPENSE-OTHER> 2,163,154
<INCOME-PRETAX> 1,573,529
<INCOME-PRE-EXTRAORDINARY> 1,027,529
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,027,529
<EPS-BASIC> .65
<EPS-DILUTED> .65
<YIELD-ACTUAL> 1.25
<LOANS-NON> 2,731,424
<LOANS-PAST> 105,286
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 2,841,481
<CHARGE-OFFS> 205,336
<RECOVERIES> 65,951
<ALLOWANCE-CLOSE> 2,858,020
<ALLOWANCE-DOMESTIC> 2,858,020
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
