<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(Mark one)
(x) Quarterly report pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
For the quarterly period ended March 31, 1995, or:
( ) Transition report pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
Commission file number: 0-11090
NAPA NATIONAL BANCORP
(Exact name of registrant as specified in its charter)
California 94-2780134
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
3263 Claremont Way, Napa, California 94558
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (707) 257-2440
Not Applicable
(Former name, former address and former fiscal year,
if changed since last report)
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.
Yes X No
As of May 10, 1995, the number of shares outstanding of the registrant's Common
Stock, without par value, was 754,500.
<PAGE>
PART I
FINANCIAL INFORMATION
Item 1.
Financial Statements
The following interim consolidated financial statements are unaudited. However,
they reflect all adjustments (which included only normal recurring adjustments)
which are, in the opinion of management, necessary for a fair presentation of
financial position, results of operations, and cash flows for the interim
periods presented.
Results for the quarter as presented are not necessarily indicative of results
to be expected of the year as a whole.
2
<PAGE>
NAPA NATIONAL BANCORP AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In 000s)
<TABLE>
<CAPTION>
March 31, December 31,
1995 1994
(Unaudited)
<S> <C> <C>
ASSETS
Cash and due from banks $ 8,872 $ 5,459
Federal funds sold 11,060 10,760
Time deposits with other financial institutions 4,356 4,357
Investment securities:Treasury Note-Held to maturity 1,218 1,216
Federal Reserve Stock 181 165
Loans, less allowance for loan losses of
$1,099 and $1,050 at March 31, 1995 and
December 31, 1994 63,131 62,103
Premises, furniture, fixtures and equipment, net 1,739 1,449
Accrued interest receivable 506 432
Other assets 677 536
TOTAL ASSETS $91,740 $86,477
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits:
Non-interest-bearing demand $15,357 $18,098
Interest-bearing:
Savings 11,559 14,367
Transaction 25,579 24,431
Time certificates 32,225 22,482
Total deposits 84,720 79,378
Accrued interest payable and other liabilities 380 753
TOTAL LIABILITIES 85,100 80,131
SHAREHOLDERS' EQUITY
Preferred stock, no par value, 1,000,000
shares authorized; no shares outstanding 0 0
Common stock, no par value, 20,000,000
shares authorized; 754,500 shares issued
and outstanding at March 31, 1995 and
December 31, 1994 6,915 6,915
Accumulated deficit (275) (569)
TOTAL SHAREHOLDERS' EQUITY 6,640 6,346
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $91,740 $86,477
</TABLE>
3
<PAGE>
NAPA NATIONAL BANCORP AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(In 000s, except earnings per share data)
<TABLE>
<CAPTION>
Quarter Ended March 31,
1995 1994
<S> <C> <C>
Interest income:
Interest and fees on loans $ 1,696 $ 1,191
Interest on federal funds sold 102 90
Interest on time deposits with
other financial institutions 59 20
Interest on investment securities 20 7
Total interest income 1,877 1,308
Interest expense:
Interest on deposits 498 382
Total interest expense 498 382
Net interest income 1,379 926
Provision for loan losses 49 33
Net interest income after provision
for loan losses 1,330 893
Non-interest income:
Service charges on deposit accounts 110 81
Other customer fees and charges 71 64
Mortgage loan origination and
service fees 2 24
Total non-interest income 183 169
Non-interest expense:
Salaries and employee benefits, net 513 477
Occupancy 91 71
Furniture, fixtures and equipment 110 78
Marketing and business development 25 16
Other 273 220
Total non-interest expense 1,012 862
Income before income taxes 501 200
Income taxes 207 82
Net income $ 294 $ 118
Net income per share $ 0.39 $ 0.16
Weighted average common shares outstanding
used to compute net income per share 754,500 754,500
</TABLE>
4
<PAGE>
NAPA NATIONAL BANCORP AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(In 000s)
<TABLE>
<CAPTION>
Quarter Ended March 31,
1995 1994
<S> <C> <C>
Cash flows from operating activities:
Net income $ 294 $ 118
Reconciliation of net incomes to net cash
provided by operating activities:
Depreciation on premises and equipment 67 68
Amortization of deferred loan fees
and discounts/premiums on investment
securities (272) (187)
Provision for loan losses 49 33
(Increase) in accrued interest receivable (74) 0
(Increase) in other assets, net (141) (81)
(Decrease) increase in accrued interest
payable and other liabilities (373) 90
NET CASH (USED) PROVIDED BY
OPERATING ACTIVITIES (450) 41
Cash flows from investing activities:
Loan originations net of collections (807) (1,070)
Net decrease (increase) in time deposits
with other financial institutions 1 (397)
Capital expenditures (357) (20)
Purchase of Federal Reserve Stock (16) 0
NET CASH USED IN INVESTING ACTIVITIES (1,179) (1,487)
Cash flows from financing activities:
Net increases in deposits 5,342 1,856
NET CASH PROVIDED BY FINANCING
ACTIVITIES 5,342 1,856
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 3,713 410
Cash and cash equivalents at beginning
of period 16,219 17,284
Cash and cash equivalents at end of
period $19,932 $17,694
</TABLE>
(Continued on following page)
5
<PAGE>
NAPA NATIONAL BANCORP AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(In 000s)
<TABLE>
<CAPTION>
Quarter Ended March 31,
1995 1994
<S> <C> <C>
CASH AND CASH EQUIVALENTS AT MARCH 31
CONSIST OF:
Cash and due from banks $ 8,872 $ 5,394
Federal funds sold 11,060 12,300
$19,932 $17,694
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid for interest $ 442 $ 363
Cash paid for income taxes $ 735 $ 53
</TABLE>
(Concluded)
6
<PAGE>
Item 2.
Management's Discussion and Analysis of Financial Condition and
Results of Operation
The following should be read in conjunction with the unaudited consolidated
financial statements presented elsewhere in this Form 10-Q. Since Napa National
Bancorp (the Company) is a holding company whose principal asset is, and is
expected to be, the capital stock of Napa National Bank (the Bank), the
following relates principally to the financial condition and results of
operations of the Bank. All dollar amounts are rounded and expressed in
thousands except earnings per share data.
Summary of Financial Results
The Company recorded net income of $294, or $0.39 per share, for the first
quarter of 1995, compared to net income of $118, or $0.16 per share, during the
first quarter of 1994. The Company's year-to-date 1995 operating results were
$176 above the results for the same period in 1994 for the following reasons.
Net interest income for the first quarter of 1995 was $453 above the results for
the similar period in 1994. Provision for loan losses for the first three
months of 1995 was $16 above the same period in 1994. Non-interest income in
1995 was $14 above the results for 1994 due to increases in various service
charges. These increases were partially offset by declines in gains from the
sale of loans to the Federal Home Loan Mortgage Company ("Freddie Mac"). Non-
interest expenses were $150 higher in the first quarter of 1995 over the similar
period of 1994.
Net Interest Income
The Company's primary source of income is the difference between interest
income and fees derived from earning assets and interest paid on liabilities
incurred for the funding of those assets. This difference is referred to as
"net interest income". Net interest income expressed as a percentage of average
total earning assets is referred to as the "net interest margin" or "margin".
For the first quarter of 1995, net interest income was $453 higher than for
the same quarter of 1994. Net interest income increased over 1995, primarily
due to an increase in earning assets and additional increases on rates paid on
loans and investments. For the first three months of 1995, the loan-to-deposit
ratio averaged 84%, while in the same period of 1994, the ratio averaged 77%.
For the first quarter of 1995, total average earning assets were
approximately $77,715, an increase of $7,050, or 10%, over total average earning
assets of $70,665 for the same period in 1994. This increase in average assets
in the first quarter of 1995 over that of 1994, contributed significantly to the
increase in total interest income between the two periods.
Average interest bearing deposits for the first quarter of 1995 were
$62,848, an increase of $3,921, or 7%, over 1994 totals. This growth in
interest bearing deposits, coupled with general increases on rates paid on
deposits, caused interest expense to be higher during the first three months of
1995 over the same period of 1994 by $116.
Provision for Loan Losses
The provision for loan losses is based upon management's assessment of the
amount that is necessary to maintain the allowance for loan losses at an
adequate
7
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level. As further described in "Allowance for Loan Losses" herein, management
takes many factors into consideration when determining the provision. In
addition to the factors described in the "Allowance for Loan Losses" section,
management also considers loan portfolio growth in establishing the provision.
The provision for loan losses was $49, or $16 higher in the first quarter
of 1995 over the same period of 1994, an increase of 48%. Net loans totaled
$63,131 as of March 31, 1995, an increase of $7,647, or 14%, over the March 31,
1994 total of $55,484. The provision for loan losses increased in the first
quarter of 1995 over the 1994 figure primarily due to an increase in outstanding
loan balances.
Non-Interest Income
Non-interest income consists primarily of service charges on deposit
accounts, fees charged for other banking services and gain on the sales of
loans. Non-interest income increased in the first quarter of 1995 by $14, or
8%, compared to the same period in 1994. During the past twelve months, the
Company's number of accounts have grown substantially. This growth has resulted
in significant increases in service charges on deposit accounts and other fees
and charges. Additionally, during the latter half of 1994, the Bank began
offering alternative investment products through the use of a third party
vendor. The sale of these products results in commission fee income for the
Bank. These increases were partially offset by decreases in gains on the sale
of mortgage loans due to the continually rising interest rates experienced
throughout 1994 and into the first quarter of 1995.
Non-Interest Expense
Total non-interest expenses for the first three months of 1995 were $1,012,
representing an increase of $150, or 17%, over 1994's total of $862. Salaries
and employee benefits increased by $36, or 8%, for the first three months of
1995 over the same period in 1994. This increase is attributed to the addition
of approximately three full time equivalent employees during the previous twelve
months. This staff increase was a strategic move by management in order to take
advantage of unique marketing opportunities taking place in the Company's
service area and the overall growth in the Bank in general.
In November 1994, the Bank entered into a five year noncancellable
operating lease for a new facility in Downtown Napa. The Bank began leasehold
improvements early in 1995 and rent payments during the later half of the first
quarter. The Bank plans to relocate its existing Downtown Napa branch, primary
lending services and headquarters into this facility during 1995. During the
leasehold improvement stage on this new facility, the Bank continued to operate
from the existing Downtown Napa branch. Occupancy and furniture, fixtures and
equipment expenses increased in 1995 over 1994 totals by $52, or 35%. This
increase in costs was attributed primarily to the Bank's new branch/headquarters
tenant improvements, and the continuous costs of supporting its other four
locations.
During April, the Bank closed its original banking office located at 1500
Third Street, Napa, California and re-opened at 903 Main Street, Napa,
California. Management estimates moving the Bank's head quarters during the end
of the second quarter. After relocation of the head quarters from 3263
Claremont Way, Napa, California, this facility will be remodeled to accommodate
the Bank's customer service and EDP departments. These departments are slated
to move in the third quarter. After this move, the Bank will vacate the leased
space which previously housed the Customer Service Center.
8
<PAGE>
The Company increased its marketing and business development costs by $9,
or 56%, during the first three months of 1995 over the same period of 1994.
This increase was the result of a very high profile and focused marketing plan
for 1995.
Other non-interest expenses increased by $53, or 24%, during 1995 over the
first quarter of 1994. A significant portion of this increase is attributable
to the fact that the Company has grown 16% in total assets during the previous
twelve months. Additionally, the Company approved a new director compensation
plan effective January 1, 1995. Director and other professional fees attributed
to approximately half of the increase in expenses during the prior twelve
months.
Income Taxes
Income tax expense was approximately 41% of pre-tax income for the three
months ending March 31, 1995 and 1994.
Loans
Loans totalled $64,230 at March 31, 1995, an increase of $1,077, or 2%,
over December 31, 1994's balance of $63,153, and an increase of $7,804, or 14%,
over March 31, 1994's balance of $56,426. The increase in the Company's loan
portfolio over the last twelve months, in management's opinion, resulted from
new loan generation by the Bank's loan officers, a concentrated marketing plan,
and current changes in the Company's service area.
As of March 31, 1995, nonperforming loans were $1,005, as compared to $962,
at December 31, 1994. Nonperforming loans at March 31, 1994 were $700.
Accruing loans past due 90 days or more were $0 at both March 31, 1995 and
December 31, 1994.
During the beginning of 1995, and again in March, the Napa Valley was
subjected to severe weather conditions that resulted in some areas of the Valley
flooding from high rain fall levels. Most of the flooding resulted in areas
near the Napa River or in dormant fields. The results of these storms have not
yet been fully ascertained however, management does not believe that it will
have a direct or material effect on either its existing loan portfolio or the
future growth in loans and deposits.
On January 1, 1995, the Company adopted SFAS No. 114, "Accounting by
Creditors for Impairment of a Loan" and SFAS No. 118, "Accounting by Creditors
for Impairment of a Loan - Income Recognition and Disclosure." These statements
address the accounting and reporting by creditors for impairment of certain
loans. A loan is impaired when, based upon current information and events, it
is probable that a creditor will be unable to collect all amounts due according
to the contractual terms of the loan agreement. These statements are applicable
to all loans, uncollaterialized as well as collateralized, except large groups
of smaller-balance homogeneous loans that are collectively evaluated for
impairment such as residential mortgage and consumer installment loans.
Impairment is measured based on the present value of expected future cash flows
discounted at the loan's effective interest rate, except that as a practical
expedient, the Company measures impairment based on a loan's observable market
price or the fair value of the collateral if the loan is collateral dependent.
Loans are measured for impairment as part of the Company's normal internal asset
review process.
Interest income is recognized on impaired loans in a manner similar to that
of all loans. It is the Company's policy to place loans that are delinquent 90
9
<PAGE>
days or more as to principal or interest on a nonaccrual of interest basis
unless secured and in the process of collection, and to reverse from current
income accrued but uncollected interest. Cash payments subsequently received on
nonaccrual loans are recognized as income only where the future collection of
principal is considered by management to be probable.
At March 31, 1995, the Company's total recorded investment in impaired
loans was $337, for which there is a related allowance for credit losses of $87
determined in accordance with these Statements.
The average recorded investment in the impaired loans during the three
months ended March 31, 1995, was $337: the related amount of interest income
recognized during the period that such loans were impaired was less than $1, and
the amount of interest income recognized under the cash-basis method of
accounting during the time within the period that the loans were impaired was
less than $0.1.
Allowance for Loan Losses
Inherent in the lending function is the fact that loan losses will be
experienced and that the risk of loss will vary with the type of loan being made
and the credit-worthiness of the borrower over the term of the loan. The
Company maintains an allowance for possible loan losses at a level estimated to
be adequate to provide for losses that can be reasonably anticipated based upon
specific loan conditions as determined by management, and based upon
management's assessment of historical loan loss experience, prevailing economic
conditions and other factors. While these factors are essentially judgmental
and may not be reduced to a mathematical formula, it is management's view that
the $1,099 allowance at March 31, 1995, approximately 1.71% of total loans, was
adequate as an allowance against probable losses in the portfolio. At March 31,
1994, the $942 allowance amounted to approximately 1.67% of total loans. There
can be no assurance that in any given period the Bank may not sustain charge-
offs which are substantial in relation to the size of the allowance. The
allowance is increased by charges to the provision for loan loss and reduced by
net charge-offs.
The activity in the allowance for loan losses was as follows:
<TABLE>
<CAPTION>
1995 1994
(in 000's)
<S> <C> <C>
Balance at January 1 $1,050 $ 912
Provision for loan losses 49 33
Recoveries 0 0
Charge-offs 0 3
Balance at March 31 $1,099 $ 942
</TABLE>
Investments
In May 1993, the Financial Accounting Standards Board issued SFAS No. 115,
"Accounting for Certain Investments in Debt and Equity Securities". SFAS 115
changes the accounting and reporting for certain equity and all debt securities
as defined, and requires that upon acquisition, securities be classified into
one of the three categories and accounted for as follows:
10
<PAGE>
Debt securities where management has the positive intent and ability to
hold maturity are classified as "held to maturity" and reported at
amortized cost.
Debt and equity securities that are held for current sale are classified as
"trading account securities" and reported at their fair value, with
unrealized gains and losses included in earnings.
Debt and equity securities not classified as either securities to be held
to maturity or trading account securities are classified as "securities
available for sale" and reported at fair value, with unrealized gains and
losses excluded from earnings and reported as a separate component of
shareholders' equity, net of the income tax effect that would result from
their sale.
The Bank's classification of its investments in debt and equity securities
according to the provisions of SFAS 115 are as follows:
March 31, 1995
Investment Securities Classified According to the Provisions of SFAS No. 115
<TABLE>
<CAPTION>
Gross Gross
Amortized Unrealized Unrealized Fair
Cost Gains Losses Value
<S> <C> <C> <C> <C>
Held-to-Maturity Securities
U.S. Treasury (Held to maturity) $1,218 $0 $3 $1,215
Federal Reserve Stock $ 181 $0 $0 $ 181
</TABLE>
Other Real Estate Owned
The Bank had no other real estate owned at March 31, 1995, or December 31,
1994.
Deposits
Deposits totalled $84,720 at March 31, 1995, an increase of $5,342, or 7%,
over December 31, 1994's balance of $79,378. During the last twelve months,
deposits have grown $11,401, or 16%, over March 31, 1994's total of $73,319.
The increase in the first quarter of 1995 was primarily all in time certificates
with some slight growth also noted in transaction accounts. These increases
were offset by drops in non-interest bearing demand accounts and savings.
Management attributes the twelve month growth to an increase in personal banking
officers, changes in the Company's current service market, and an advertisement
plan focused on deposit growth, primarily time certificates.
Non-interest-bearing demand deposits were 18% of total deposits at March
31, 1995, as compared to 17% at March 31, 1994. Time certificates of deposit
were 38% of total deposits at quarter end, as compared to 30% at March 31, 1994.
Liquidity and Capital Resources
Liquidity refers to the Company's ability to maintain a cash flow adequate
to fund operations and meet obligations and other commitments on a timely basis.
As shown in the Consolidated Statements of Cash Flows ("Statement") for the
quarters ended March 31, 1995 and 1994, the Company's usual and primary sources
of funds have been customer deposits and loan principal repayments. While the
usual and primary sources are expected to continue to provide significant
amounts
11
<PAGE>
of funds in the future, their mix, as well as other sources, will depend on
future economic and other market conditions.
The maturity and repricing profile of the Company's asset-liability mix is
currently in an asset sensitive position. This means that when there exists a
declining interest rate environment, the returns on the Company's earning assets
drops more quickly than the Company's cost of funds. This causes a narrowing of
the net interest spread and a possible reduction to the overall earnings of the
Company. As rates increase, the opposite effect occurs. The Company's
management monitors the asset-liability position of the Company on a monthly
basis and is continually assessing both the asset-liability mix and the products
being offered to its customers.
The 1995 Statement of Cash Flows shows that the only source of net cash
inflow during the period under review was from financing activities. Operating
and investing activities used net cash of $450 and $1,179, respectively,
primarily for net loan originations which totalled $807. The Bank experienced
deposit growth in the first quarter of 1995 (see "Deposits" herein), thereby
providing a net $5,342 in cash for financing activities. These activities
resulted in an increase in cash and cash equivalents of $3,713 during the first
quarter of 1995.
If the Bank's loan portfolio grows substantially, it might be necessary to
raise deposits to support the growth. The Bank monitors its loan-to-deposit
ratio (76% at March 31, 1995 and 80% at December 31, 1994) on a daily basis. If
the loan-to-deposit ratio indicates that a liquidity squeeze is possible, the
Bank can raise rates on deposits to attract more funds. In addition, the Bank
has $5,500 in short-term lines of credit available to it from its correspondent
banks.
The Company's primary source of income is interest income earned on its
liquid investments. Due to regulatory restrictions, the Bank is not expected to
pay dividends to the Company in the foreseeable future. The amounts invested by
the Company in the Bank at March 31, 1995 were approximately $310. The
Company's yearly operating expenses are expected to exceed investment income by
approximately $30 during 1995.
Liquidity is measured by various ratios, the most common being the
liquidity ratio of cash less reserve requirements, time deposits in other
financial institutions, federal funds sold, securities held for sale and
unpledged investment securities compared to total deposits. At March 31, 1995
and December 31, 1994, this ratio was 28% and 25%, respectively.
Capital Adequacy
The FRB and the Comptroller of the Currency have specified guidelines for
the purpose of evaluating the capital adequacy of holding companies and banks.
The table below summarizes the current requirements for 1995, and the Company's
and the Bank's compliance therewith. The requirements for the ratio of
regulatory capital to risk-weighted assets for an "adequately capitalized"
institution is 8.00%.
12
<PAGE>
<TABLE>
<CAPTION>
Capital as a Minimum Tier 1
% of Risk- Leverage Capital
Weighted Assets Ratio Ratio
<S> <C> <C> <C>
Regulatory Requirements for 1995 8.00% 4.00% 4.00%
Consolidated Company Ratio at
March 31, 1995 8.44% Not applicable 8.44%
Bank Ratio at March 31, 1995 10.24% 7.52% 8.98%
</TABLE>
The capital levels of both the Bank and the Company currently exceed all minimum
regulatory requirements. Management anticipates that both companies will
continue to exceed the regulatory minimums in the foreseeable future.
Therefore, the Company and the Bank have adequate capital in order to expand in
the future, either through loan generation or other means of expansion.
Effects of Inflation
The impact of inflation on a financial institution differs significantly
from that exerted on an industrial concern, primarily because its assets and
liabilities consist largely of monetary items. The most direct effect of
inflation is higher interest rates. However, the Bank's earnings are affected
by the spread between the yield on earning assets and rates paid on interest-
bearing liabilities rather than the absolute level of interest rates.
Additionally, there may be some upward pressure on the Company's operating
expenses, such as adjustments in staff expense and occupancy expense, based upon
consumer price indices. In the opinion of management, inflation has not had a
material effect on the consolidated results of operations.
13
<PAGE>
INDEX TO EXHIBITS
Exhibit No. Description
27 Financial Data Schedule
14
<PAGE>
SIGNATURES
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.
NAPA NATIONAL BANCORP
Date May 12, 1995 By: /s/ Brian J. Kelly
Brian J. Kelly
Executive Vice President
By: /s/ Joan E. Heinitz
Joan E. Heinitz
Treasurer
15
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 9
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-01-1995
<PERIOD-END> MAR-31-1995
<CASH> 8,872
<INT-BEARING-DEPOSITS> 4,356
<FED-FUNDS-SOLD> 11,060
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 181
<INVESTMENTS-CARRYING> 1,218
<INVESTMENTS-MARKET> 1,215
<LOANS> 64,230
<ALLOWANCE> 1,099
<TOTAL-ASSETS> 91,740
<DEPOSITS> 84,720
<SHORT-TERM> 0
<LIABILITIES-OTHER> 380
<LONG-TERM> 0
<COMMON> 6,915
0
0
<OTHER-SE> (275)
<TOTAL-LIABILITIES-AND-EQUITY> 91,740
<INTEREST-LOAN> 1,696
<INTEREST-INVEST> 181
<INTEREST-OTHER> 0
<INTEREST-TOTAL> 1,877
<INTEREST-DEPOSIT> 498
<INTEREST-EXPENSE> 498
<INTEREST-INCOME-NET> 1,379
<LOAN-LOSSES> 49
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 1,012
<INCOME-PRETAX> 501
<INCOME-PRE-EXTRAORDINARY> 501
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 0
<EPS-PRIMARY> 0.39
<EPS-DILUTED> 0.39
<YIELD-ACTUAL> 10.56
<LOANS-NON> 1,005
<LOANS-PAST> 0
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 402
<ALLOWANCE-OPEN> 1,050
<CHARGE-OFFS> 0
<RECOVERIES> 0
<ALLOWANCE-CLOSE> 1,099
<ALLOWANCE-DOMESTIC> 1,099
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 123
</TABLE>
