<PAGE> 1
U. S. SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
-------------------------
FORM 10-Q
QUARTERLY REPORT UNDER SECTION 13 OR 15 (d) OF
THE SECURITIES EXCHANGE ACT OF 1934
-------------------------
For quarter ended March 31 1997 Commission file number 0-10853
--------------- ---------
FIRST BANKING COMPANY OF SOUTHEAST GEORGIA
(Exact name of registrant as specified in its charter)
-------------------------
GEORGIA 58-1458268
-------------------------------- --------------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification no.)
40 NORTH MAIN STREET
P.O. BOX 878
STATESBORO, GEORGIA 30459
-------------------------------
(Address of Principal Executive
Offices, including Zip Code)
912-764-6611
-------------------------------
(Issuer's telephone number, including area code)
NOT APPLICABLE
-------------------------------
(Former name, former address
and former fiscal year, if
changed since last report)
-------------------------------
Check whether the issuer: (1) has filed all reports required to be filed by
Section 13 or 15 (d) of the Exchange Act during the past 12 months (or for such
shorter period that the registrant was required to file such reports) and (2)
has been subject to such filing requirement for the past 90 days.
Yes X No
--- ---
State the number of shares outstanding of each of the issuer's classes of
common equity, as of the latest practicable date.
COMMON STOCK, $1.00 PAR VALUE 3,002,020 SHARES AS OF MARCH 31, 1997
<PAGE> 2
PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
FIRST BANKING COMPANY OF SOUTHEAST GEORGIA
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
<TABLE>
<CAPTION>
March 31, December 31,
1997 1996
---------------------------
(thousands of dollars)
<S> <C> <C>
ASSETS
Cash and Due From Banks $ 18,251 $ 21,611
Interest Bearing Deposits in Other Banks 11,307 9,905
Federal Funds Sold 750 6,220
Investment Securities:
Available for Sale (Cost of $80,994 in 1997
and $85,901 in 1996) 80,595 85,866
Held to Maturity (Estimated Market Value
of $21,800 in 1997 and $18,738 in 1996) 21,469 18,158
Loans 235,726 231,057
Less: Unearned Interest (12) (15)
Allowance for Loan Losses (4,230) (4,024)
-------- --------
Loans, Net 231,484 227,018
-------- --------
Interest Receivable 4,780 5,383
Premises and Equipment, Net 7,186 7,193
Other Real Estate 617 447
Other Assets 2,478 2,235
-------- --------
TOTAL ASSETS $378,917 $384,036
======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Deposits:
Demand $ 44,680 $ 43,368
Interest Bearing:
NOW Accounts 52,680 56,265
Money Market Deposit Accounts 25,332 33,332
Savings 14,194 13,185
Time ($100,000 and above) 87,139 82,204
Other Time 102,015 101,293
-------- --------
Total Deposits 326,040 329,647
Other Borrowed Money 9,627 11,718
Securities Sold Under Agreement to Repurchase 1,200 1,200
Interest Payable 3,053 3,279
Other Liabilities 1,116 871
-------- --------
Total Liabilities 341,036 346,715
-------- --------
Shareholders' Equity (Note 3):
Common Stock, 3,002,020 Shares Issued and Outstanding 3,002 3,002
Surplus 8,023 8,023
Retained Earnings 27,112 26,319
Net Unrealized Gain/(Loss) on Investment
Securities Available for Sale (256) (23)
-------- --------
Shareholders' Equity 37,881 37,321
-------- --------
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $378,917 $384,036
======== ========
</TABLE>
See notes to consolidated financial statements.
1
<PAGE> 3
FIRST BANKING COMPANY OF SOUTHEAST GEORGIA
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
<TABLE>
<CAPTION>
For the Three Months Ended
March 31,
1997 1996
---------------------------
INTEREST INCOME (thousands of dollars)
<S> <C> <C>
Loans (Including fees) $ 5,968 $ 5,732
Interest Bearing Deposits 151 166
Investments:
U.S. Treasury 359 383
U.S. Government Agencies 853 828
States and Political Subdivisions 269 252
Dividend Income 50 33
Federal Funds Sold 81 101
------- -------
Total Interest Income 7,731 7,495
------- -------
INTEREST EXPENSE
NOW Accounts 452 471
Money Market Deposits Accounts 207 299
Savings 108 103
Time Deposits ($100,000 and above) 1,291 1,145
Other Time Deposits 1,403 1,479
Other 187 122
------- -------
Total Interest Expense 3,648 3,619
------- -------
NET INTEREST INCOME 4,083 3,876
Provision for Loan Losses 231 229
------- -------
NET INTEREST INCOME AFTER PROVISION
FOR LOAN LOSSES 3,852 3,647
------- -------
NON-INTEREST INCOME
Service Charges on Deposits 498 445
Fees for Trust Services 38 38
Other 117 116
------- -------
Total Non-interest Income 653 599
------- -------
NON-INTEREST EXPENSE
Salaries 1,016 1,001
Other Personnel Expense 379 275
Occupancy Expense, Net 204 181
Equipment Expense 299 235
Other 690 723
------- -------
Total Non-interest Expense 2,588 2,415
------- -------
INCOME BEFORE INCOME TAXES 1,917 1,831
Provision for Income Taxes 583 547
------- -------
NET INCOME $ 1,334 $ 1,284
======= =======
EARNINGS PER COMMON SHARE (NOTE 3) $ .44 $ .43
======= =======
DIVIDENDS PER COMMON SHARE (NOTE 3) $ .18 $ .12
======= =======
AVERAGE NUMBER OF SHARES OUTSTANDING (NOTE 3) 3,002,020 3,002,131
========= =========
</TABLE>
See notes to consolidated financial statements.
2
<PAGE> 4
FIRST BANKING COMPANY OF SOUTHEAST GEORGIA
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
FOR THE THREE MONTHS ENDED MARCH 31, 1997 AND 1996
<TABLE>
<CAPTION>
March 31,
1997 1996
-------------------
(thousands of dollars)
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income $1,334 $ 1,284
Adjustments to Reconcile Net Income to Net
Cash Provided by Operating Activities:
Provision for Depreciation 248 188
Provision for Loan Losses 231 229
(Gain) Loss on Sale of Other Real Estate (4) (1)
Gain on Call of Securities (5) (6)
Net Accretion of Premiums and Discounts on Securities (103) (175)
Changes in Assets and Liabilities:
Increase in Interest Receivable 603 382
(Increase) Decrease in Other Assets (121) (23)
Increase (Decrease) in Interest Payable (226) (137)
Increase (Decrease) in Other Liabilities 245 (12)
------ ------
Net Cash Provided by Operating Activities 2,202 1,729
------ ------
CASH FLOWS FROM INVESTING ACTIVITIES:
Net Increase in Interest Bearing Deposits
in Other Banks (1,402) (9,383)
Net (Increase) Decrease in Federal Funds Sold 5,470 1,770
Available-for-Sale Securities:
Proceeds from Maturity 14,004 17,165
Purchases (8,997) (35,533)
Held-to-Maturity Securities:
Proceeds from Maturity 3,943 6,369
Purchases (7,237) (2,328)
Net (Increase) Decrease in Loans (4,889) 222
Purchases of Premises and Equipment (241) (353)
Proceeds from Sale of Other Real Estate 25 8
------- -------
Net Cash Used in Investing Activities 676 (22,063)
------- -------
CASH FLOWS FROM FINANCING ACTIVITIES
Net Increase (Decrease) in Deposits (3,607) 17,152
Advances from the Federal Home Loan Bank and
Federal Funds Purchased 800 4,766
Repayment of Other Borrowed Money (2,891) (3,384)
Dividends Paid (540) (399)
------- -------
Net Cash Provided by Financing Activities (6,238) 18,135
------- -------
INCREASE (DECREASE) IN CASH AND DUE FROM BANKS (3,360) (2,199)
CASH AND DUE FROM BANKS AT BEGINNING OF YEAR 21,611 15,006
------- -------
CASH AND DUE FROM BANKS AT END OF PERIOD $18,251 $12,807
======= =======
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid (received) during the year for:
Interest $ 3,510 $ 3,756
Income Taxes 70 64
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING ACTIVITIES:
Other Real Estate Acquired through Loan Foreclosure $ 234 56
Loans granted to facilitate the Sale of Other Real Estate 43
Change in Net Unrealized Gain (Loss) on
Investment Securities Available for Sale (234) 306
</TABLE>
See notes to consolidated financial statements.
3
<PAGE> 5
FIRST BANKING COMPANY OF SOUTHEAST GEORGIA
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
1. BASIS OF PRESENTATION
The consolidated financial statements of First Banking Company of Southeast
Georgia (the "Company") include the financial statements of First Bulloch
Bank & Trust Company, Metter Banking Company and First National Bank of
Effingham, wholly-owned subsidiaries. Intercompany balances and
transactions have been eliminated in consolidation.
The consolidated statements contained in this report are unaudited but
reflect all adjustments, consisting only of normal recurring accruals, which
are, in the opinion of management, necessary to a fair statement of the
results for the interim period reflected. Certain information and footnote
disclosures normally included in financial statements prepared in
accordance with generally accepted accounting principles have been
condensed or omitted pursuant to applicable rules and regulations of the
Securities and Exchange Commission. The results of operations for the
interiM period reported herein are not necessarily indicative of results
to be expected for the full year.
The consolidated financial statements included herein should be read in
conjunction with the financial statements and notes thereto, and the
Independent Auditors' Report included in the Company's Annual Report on
Form 10-K for the fiscal year ended December 31, 1996.
2. ACCOUNTING POLICIES
Reference is made to the accounting policies of the Company described in the
notes to consolidated financial statements contained in the Company's Annual
Report on Form 10-K for the year ended December 31, 1996. The Company has
followed those policies in preparing this report.
3. COMMON STOCK
At the Company's Annual Meeting of Shareholders held on April 25, 1996, the
shareholders approved a proposal to amend the Articles of Incorporation to
increase the number of authorized shares from 5,000,000 to 10,000,000. The
par value of First Banking's common stock is $1 and, as of May 3, 1996
10,000,000 shares were authorized.
The Banks may pay dividends to First Banking in any year up to 50% of the
previous year's net income without the approval of the Georgia Department
of Banking and Finance, or $2,824,000 in 1997.
4. EARNINGS PER SHARE
Net Income per share of common stock is based on the weighted average number
of shares of common stock outstanding during each period.
5. IMPACT OF NEW ACCOUNTING STANDARD
In February 1997, the Financial Accounting Standards Board issued Statement
of Financial Accounting Standards No. 128 ("SFAS 128"), "Earnings per
Share." SFAS 128 established standards for computing and presenting
earnings per share and applies to entities with publicly held common stock
or potential common stock and is effective for
4
<PAGE> 6
financial statements issued for periods ending after December 15, 1997,
including interim periods. The statement has no effect on the Company's
financial statements for the three month period ended March 31,1997 as the
Company had no common stock equivalents outstanding during the period.
5
<PAGE> 7
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
FIRST BANKING COMPANY OF SOUTHEAST GEORGIA
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS FOR THE
THREE MONTHS ENDED MARCH 31, 1997
This discussion relates to the consolidated financial condition and
results of operations of First Banking Company of Southeast Georgia (the
"Company") and its wholly-owned subsidiaries, First Bulloch Bank & Trust
Company ("Bulloch Bank"), Metter Banking Company ("Metter Bank") and First
National Bank of Effingham ("Effingham Bank"), (the "Banks"). Since the
Company has no subsidiaries other than the Banks and no activities other than
those of the Banks, the following narrative refers to the operations of the
Banks. The Company acquired the Effingham Bank on August 27, 1996 through the
merger of FNB Bancshares, Inc. ("FNB") with and into the Company. The Company
issued 340,309 shares of common stock and approximately $2,800 in cash in the
merger. The financial statements appearing herein and the discussion and
analysis set forth below reflect the combined operations of the Company and
FNB.
FINANCIAL CONDITION
The Company functions as the sole owner of three commercial banks, and
its financial condition should be examined in terms of trends in sources and
uses of funds. The Company's primary use of funds historically comes from loan
demand. Loans outstanding have increased $4,889,000 or 2.1% since year-end.
Investment securities and federal funds sold have decreased $1,960,000 (1.9%)
and $5,470,000 (87.9%), respectively, while interest bearing deposits in other
banks have increased $1,402,000 (14.2%) since year-end. The decrease in
Federal Funds Sold and Investment Securities has funded the growth in loans
discussed above.
Total assets have decreased $5,119,000 (1.3%) since year-end, while
total funds (deposits plus Other Borrowed Money) have decreased $5,698,000
(1.7%). Total deposits have decreased $3,607,000 (1.1%) since year-end, and
Other Borrowed Money has decreased $2,091,000 (16.2%). Demand deposits have
increased $1,312,000 (3.0%), and savings deposits (including NOW accounts and
the liquid money market accounts) have decreased $10,576,000 (10.3%). Time
deposits over
6
<PAGE> 8
$100,000 have increased approximately $4,935,000 (6.0%), while other time
deposits have increased approximately $722,000 (0.7%). The $10,576,000
decrease in savings deposits is primarily the result of the movement of
municipal public funds since year-end either out of the Banks or into Time
Deposits over $100,000. Two public entity accounts reflect typical
fluctuations in balances which account for a $5,678,000 decrease. A third
public entity account moved approximately $4,000,000 from savings to Time
Deposits over $100,000. The decrease in Other Borrowed Money is the result of
repayment since year-end of $800,000 in Federal Funds Purchased and of
$1,250,000 in short-term borrowings from the Federal Home Loan Bank.
CAPITAL RESOURCES
The Banks are required to maintain minimum amounts of capital to total
"risk-weighted" assets, as defined by the banking regulators. At March 31,
1997, the Banks were required to have minimum Tier 1 and Total Risk-Based
Capital ratios of 4% and 8%, respectively, and a leverage ratio of at least 3%.
At that date the Banks' actual ratios were as follows:
<TABLE>
<CAPTION>
Bulloch Bank Metter Bank Effingham Bank
<S> <C> <C> <C>
Tier 1 Risk-based Capital ratio 18.7% 15.5% 8.7%
Total Risk-based Capital ratio 19.9 16.8 9.8
Leverage ratio 10.9 10.0 6.2
</TABLE>
These ratios qualify the Bulloch Bank and the Metter Bank for the
"well-capitalized" classification and the Effingham Bank for the "adequately
capitalized" classification as defined by the banking regulators. The Company's
ratio of shareholders' equity to total assets was 10.0% at March 31, 1997 and
9.7% at December 31, 1996.
LIQUIDITY
The percentage of net loans to total funds was 69.0% at March 31,1997
and 66.7% at December 31, 1996. At March 31, 1997 the Banks had $30,308,000 in
cash and due from banks, interest bearing deposits in other banks and federal
funds sold as compared with $37,736,000 at December 31, 1996. The Banks'
liquidity policies typically require that the ratio of cash and certain
short-term investments to net withdrawable deposit accounts be at least 20.0%.
7
<PAGE> 9
At March 31, 1997, all of the Banks exceeded this ratio. The liquidity of
the Company and the Banks is considered adequate to repay deposits and other
obligations, meet expected loan demand and pay dividends.
Presented below is an interest rate sensitivity analysis of the Company
at March 31, 1997. The anaylsis indicates that the Company is
liability-sensitive through one year, meaning that a greater amount of
liabilities are maturing or repricing than assets, which is beneficial in a
falling rate environment. Beyond one year, the Company is asset- sensitive,
which is beneficial in a rising rate environment.
8
<PAGE> 10
Interest Rate Sensitivity Analysis - March 31, 1997
<TABLE>
<CAPTION>
Term to Repricing or Maturity
----------------------------------------------------------------------
Over Three Over One Over Five
Less Than Months through Year through years and
Three Months One Year Five years Insensitive Total
----------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Interest Earning Assets:
Interest Bearing
Deposits in Other
Banks $11,307 $11,307
Investment Securities 11,568 $34,250 $37,888 $18,358 102,064
Federal Funds Sold 750 750
Loans 104,551 50,000 57,774 23,401 235,726
-------- ------- ------- ------- --------
Total Interest
Earning Assets 128,176 84,250 95,662 41,759 349,847
Noninterest Earning
Assets 29,070 29,070
-------- ------- ------- ------- --------
TOTAL ASSETS $128,176 $84,250 $95,662 $70,829 $378,917
======== ======= ======= ======= ========
Interest Bearing Liabilities:
Interest Bearing
Deposits $146,197 $106,695 $28,468 $281,360
Other Borrowed Money 220 807 4,225 $4,375 9,627
Repurchase Agreements 1,200 1,200
-------- -------- ------- -------- --------
Total Interest
Bearing Liabilities 147,617 107,502 32,693 4,375 292,187
Interest Free Deposits 44,680 44,680
Other Interest Free
Liabilities and Equity 42,050 42,050
-------- -------- ------- -------- --------
TOTAL LIABILITIES
AND EQUITY $147,617 $107,502 $32,693 $91,105 $378,917
======== ======== ======= ======== ========
Net Interest Rate
Sensitivity Gap $(19,441) $(23,252) $62,969 ($20,276)
Cumulative gap (19,441) (42,693) 20,276
Net Interest Rate
Sensitivity Gap as
a Percent of Interest
Earning Assets (15.2) (27.6) 65.8 (28.6)
Cumulative Gap as a
Percent of Cumulative
Interest Earning Assets (15.2) (20.0) 6.6
</TABLE>
9
<PAGE> 11
RESULTS OF OPERATIONS
INTEREST INCOME
Total interest income increased $236,000 (3.1%) in the first three
months of 1997 as compared to the first three months of 1996. Interest on loans
increased $236,000 (4.1%) in the first three months of 1997 as compared to the
first three months of 1996, as a result of an increase of $17,903,000 in the
year-to-date average balance of loans outstanding from March 31, 1996 to March
31, 1997 offset by a decrease in yield on the loan portfolio for that period
from 10.8% to 10.4%. Interest on investments increased $35,000 (2.3%) in the
first three months of this year as compared to the first three months of 1996,
primarily as a result of an increase in the average balance of the investment
portfolio of $3,213,000 offset by a nominal decrease in yield from 6.42% to
6.40%.
During the first three months of 1997, interest on federal funds sold
decreased $20,000 (19.5%) from the first three months of 1996. Interest on
Interest-bearing Deposits in Other Banks decreased $15,000 (9.1%) during the
first three months of 1997 from the first three months of 1996. These
short-term investments are the two means of investing any excess cash from day
to day. The total decrease in the combined income of Federal Funds Sold and
Interest-bearing deposits in other banks is the result of a decrease of
$4,248,000 in the combined year-to-date average balance offset by a nominal
decrease in the weighted average yield.
INTEREST EXPENSE
During the first three months of 1997, total interest expense increased
$29,000 (0.8%) from the first three months of 1996. Interest on deposits
decreased $36,000 (1.1%) in the first three months of 1997 from the first three
months of 1996. This decrease is attributable to a decrease in the cost of
funds from 5.15% to 4.91% offset by an increase in the average balance of
interest bearing deposits of $10,631,761. Interest on Other Borrowed Money
increased $65,000 (53.6%) in the first three months of 1997 from the first three
months of 1996. This increase is the result of an increase of $3,289,000 in the
average balance outstanding of Other Borrowed Money at a higher average interest
rate of 7.06% from 6.60%.
10
<PAGE> 12
PROVISIONS FOR LOAN LOSSES
Provisions for loan losses for the first three months of 1997 increased
$3,000 (1.3%) from the first three months of 1996. After considering the credit
worthiness of the loan portfolios, it is the opinion of the management of the
Banks that the allowance for loan losses is adequate. At March 31, 1997 the
allowance for loan losses was 1.8% of outstanding loans less unearned interest.
Nonperforming loans were $3,391,000 at March 31, 1997 and $1,416,000 at
December 31, 1996. These loans included those on a nonaccrual status of
$2,608,000 and $353,000, respectively, accruing loans contractually past due at
least 90 days of $227,000 and $207,000, respectively, and restructured loans of
$556,000 and $856,000, respectively. Net loans charged off totaled $26,000
during the first three months of 1997 as compared to $20,000 during the first
three months of 1996.
NONINTEREST INCOME AND EXPENSE
Noninterest income increased $54,000 (9.0%) in the first three months of
1997 from the first three months of 1996. This increase is reflected primarily
in an increase in service charges on deposit accounts of $53,000 during the
first three months of this year, as a result of increases in the per item NSF
service charge as well as an increase in the overall volume of accounts subject
to other account service charges.
Noninterest expense increased $173,000 (7.2%) in the first three months
of 1997 compared to the first three months of 1996. This increase is the result
of an increase in salary and personnel expense of $119,000 and an increase in
occupancy and equipment expense of $87,000 offset by a decrease in Other Expense
of $33,000 during the first three months of 1997 as compared to the first three
months of 1996. The increase in salary and personnel expense is primarily the
result of increases in insurance expense, a credit adjustment to post-retirement
benefits in 1996, and the adoption of retirement benefits for the Effingham
Bank, which was acquired by the Company in 1996. The increase in occupancy and
equipment expense is the result of increases in depreciation expense related to
construction projects, equipment purchases and the opening of two Wal-Mart
Supercenters branches in 1996. The decrease in
11
<PAGE> 13
Other Expense is the result of a decrease in legal and consultant fees compared
to those incurred in 1996 relating to the acquisition of the Effingham Bank and
executive compensation matters.
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Not Applicable
12
<PAGE> 14
PART II - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
Neither the Registrant nor any of its subsidiaries is a party to, nor is
any of their property the subject of, any material pending legal proceedings,
other than ordinary routine proceedings incidental to the business of banks,
nor to the knowledge of management are any such proceedings contemplated or
threatened against the Registrant or its subsidiaries.
ITEM 2. CHANGES IN SECURITIES
None
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
None
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY-HOLDERS.
None
ITEM 5. OTHER INFORMATION
None
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits:
Exhibit 27 - Financial Data Schedule (for SEC use only).
(b) Reports on Form 8-K: None
13
<PAGE> 15
SIGNATURES
In accordance with the requirements of the Exchange Act, the Registrant has
duly caused this report to be signed on its behalf by the undersigned thereunto
duly authorized.
FIRST BANKING COMPANY OF SOUTHEAST GEORGIA
DATE: May 14, 1997 BY: /s/James Eli Hodges
----------------- --------------------------
JAMES ELI HODGES
PRESIDENT
DATE: May 14, 1997 BY: /s/Dwayne E. Rocker
----------------- --------------------------
DWAYNE E. ROCKER
SECRETARY-TREASURER
(PRINCIPAL FINANCIAL OFFICER)
14
<TABLE> <S> <C>
<ARTICLE> 9
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FINANCIAL STATEMENTS OF FIRST BANKING COMPANY OF SOUTHEAST GEORGIA FOR THE
THREE MONTHS ENDED MARCH 31, 1997 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE
TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> MAR-31-1997
<CASH> 18,251
<INT-BEARING-DEPOSITS> 11,307
<FED-FUNDS-SOLD> 750
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 80,595
<INVESTMENTS-CARRYING> 21,469
<INVESTMENTS-MARKET> 21,800
<LOANS> 235,714
<ALLOWANCE> 4,230
<TOTAL-ASSETS> 378,917
<DEPOSITS> 326,040
<SHORT-TERM> 1,200
<LIABILITIES-OTHER> 4,169
<LONG-TERM> 9,627
0
0
<COMMON> 3,002
<OTHER-SE> 34,879
<TOTAL-LIABILITIES-AND-EQUITY> 378,917
<INTEREST-LOAN> 5,968
<INTEREST-INVEST> 1,531
<INTEREST-OTHER> 232
<INTEREST-TOTAL> 7,731
<INTEREST-DEPOSIT> 3,461
<INTEREST-EXPENSE> 3,648
<INTEREST-INCOME-NET> 4,083
<LOAN-LOSSES> 231
<SECURITIES-GAINS> 4
<EXPENSE-OTHER> 2,588
<INCOME-PRETAX> 1,917
<INCOME-PRE-EXTRAORDINARY> 1,917
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,334
<EPS-PRIMARY> 0.44
<EPS-DILUTED> 0.44
<YIELD-ACTUAL> 4.87
<LOANS-NON> 2,608
<LOANS-PAST> 227
<LOANS-TROUBLED> 556
<LOANS-PROBLEM> 3,391
<ALLOWANCE-OPEN> 4,024
<CHARGE-OFFS> 86
<RECOVERIES> 61
<ALLOWANCE-CLOSE> 4,230
<ALLOWANCE-DOMESTIC> 4,230
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
