<PAGE> 1
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(Mark One)
X QUARTERLY REPORT UNDER SECTION 13 OR 15(D) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 1995
Commission file number 0-10794
STERLING WEST BANCORP
(Exact name of registrant as specified in its charter)
California 95-3712404
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
3287 Wilshire Boulevard, Los Angeles, California 90010 (Address of
principal executive offices) (Zip Code)
(213) 384-4444
(Registrant's telephone number, including area code)
Indicate by check 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
1,710,429
(Number of shares of common stock outstanding May 10, 1995)
This Form 10-Q contains 13 pages.
Exhibit Index: None
<PAGE>
<PAGE> 2
PART I: FINANCIAL INFORMATION
ITEM 1: FINANCIAL STATEMENTS
Sterling West Bancorp and Subsidiaries
CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
March 31, December 31,
1995 1994
(Unaudited)
<S> <C> <C>
ASSETS
Cash and cash equivalents $ 15,928,000 $ 20,294,000
Investment securities
(market value of $7,028,000)
in 1995 and $6,832,000 in 1994 7,063,000 6,974,000
Loans Receivable, net 88,164,000 89,462,000
Fixed assets
Land and building 227,000 227,000
Furniture and equipment 3,425,000 2,635,000
Leasehold improvements 1,412,000 1,400,000
5,064,000 4,262,000
Less accumulated depreciation (3,742,000) (3,089,000)
1,322,000 1,173,000
Accrued interest receivable 880,000 954,000
Real estate held for sale 6,908,000 7,808,000
Other assets 1,486,000 1,504,000
Assets of discontinued operations 3,492,000 4,322,000
Total assets $125,243,000 $132,491,000
LIABILITIES
Deposits
Demand $ 26,476,000 $ 31,097,000
Savings and NOW 55,423,000 57,652,000
Money market 8,648,000 10,183,000
Time deposits $100,000 or greater 3,781,000 3,505,000
Other time deposits 3,492,000 4,661,000
98,037,000 107,098,000
Notes payable 13,443,000 11,900,000
Other liabilities 3,279,000 3,136,000
Total liabilities 114,759,000 122,134,000
STOCKHOLDERS' EQUITY
Common stock - authorized 5,000,000
shares without par value; issued
and outstanding 1,710,429 shares at
March 31, 1995 and December 31, 1994 8,686,000 8,686,000
Retained earnings 1,798,000 1,671,000
10,484,000 10,357,000
Total liabilities and Stockholders Equity $125,243,000 $132,491,000
</TABLE>
See accompanying notes to consolidated financial statements.
<PAGE> 3
<PAGE>
PART I: FINANCIAL INFORMATION
ITEM 1: FINANCIAL STATEMENTS
Sterling West Bancorp and Subsidiaries
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
<TABLE>
<CAPTION>
For the three months ended
March 31,
1995 1994
<S> <C> <C>
Interest income
Loans $ 3,087,000 $ 2,666,000
Federal funds sold 152,000 59,000
Investment securities held to maturity 97,000 112,000
Trading Securities -- 13,000
3,336,000 2,850,000
Interest expense
Savings and NOW 658,000 279,000
Money market 43,000 61,000
Time deposits $100,000 or greater 26,000 104,000
Other time deposits 44,000 38,000
Notes Payable 374,000 238,000
1,145,000 720,000
Net interest income 2,191,000 2,130,000
Provision for loan losses 200,000 25,000
Net interest income after
provision for loan losses 1,991,000 2,105,000
Non-interest income
Service charges on deposit accounts 74,000 75,000
Gain on sale of SBA loans 21,000 45,000
Other 148,000 118,000
243,000 238,000
Non-interest expense
Salaries, wages and employee benefits 1,109,000 1,150,000
Occupancy 195,000 252,000
Furniture and equipment 86,000 59,000
Real estate operations, net 85,000 214,000
Other 548,000 493,000
2,023,000 2,168,000
Income from continuing operations
before income taxes 211,000 175,000
Income tax provision 84,000 69,000
Income from continuing operations 127,000 106,000
Loss from discontinued operations -- (784,000)
NET INCOME (LOSS) $ 127,000 $ (678,000)
============ ============
Income (loss) per common share:
From continuing operations $ 0.07 $ 0.06
From discontinued operations -- (0.46)
Net income (loss) per share $ 0.07 $ (0.40)
============ ============
</TABLE>
See accompanying notes to consolidated financial statements.
<PAGE> 4
<PAGE>
PART I: FINANCIAL INFORMATION
ITEM 1: FINANCIAL STATEMENTS
Sterling West Bancorp and Subsidiaries
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
<TABLE>
<CAPTION>
For the three months ended
March 31,
1995 1994
<S> <C> <C>
Cash flows from operating activities
Net income (loss) $ 127,000 $ (678,000)
Adjustments to reconcile net income (loss)
to net cash provided by operating activities:
Depreciation and amortization 653,000 64,000
Provision for loan losses 200,000 25,000
Provision (benefit) for deferred taxes (140,000) 69,000
Decrease in trading securities, net -- 2,030,000
Real estate valuation adjustments, net 567,000 281,000
Decrease in interest receivable 74,000 (22,000)
Decrease in other assets 157,000 196,000
Increase in other liabilities 143,000 (210,000)
Decrease in assets of discontinued operations 830,000 3,269,000
Total adjustments 2,484,000 5,702,000
Net cash provided by
operating activities 2,611,000 5,024,000
Cash flows from investing activities
Proceeds from maturities of investment securities -- 1,000,000
Purchases of investment securities (88,000) 1,978,000
Net (increase) decrease in loans receivable 1,158,000 (3,115,000)
Proceeds from sale of real estate 274,000 668,000
Purchase of furniture and equipment (802,000) (20,000)
Net cash provided by (used in)
investing activities 542,000 (3,445,000)
Cash flows from financing activities
Net increase in demand deposits, savings
and other money market accounts (8,385,000) (4,669,000)
Net decrease in certificates of deposit (677,000) (1,146,000)
Net increase (decrease) in note payable to
financial institution 1,543,000 (130,000)
Payments on maturing commercial paper -- (323,000)
Net cash used in
financing activities (7,519,000) (6,268,000)
Net decrease in cash and cash equivalents (4,366,000) (4,689,000)
Cash and cash equivalents at beginning of period 20,294,000 17,163,000
Cash and cash equivalents at end of period $15,928,000 $12,474,000
========== ===========
</TABLE>
See acompanying notes to consolidated financial statements.
<PAGE> 5
PART I: FINANCIAL INFORMATION
Notes to Financial Statements of Registrant
March 31, 1995
1. The consolidated financial statements are unaudited and reflect
all adjustments and reclassifications which are, in the opinion of
Management, necessary for a fair presentation of the results of
operations for the interim period. The results of operations and cash
flows for the interim period ended March 31, 1995 are not necessarily
indicative of results which may be expected for any other interim
period or the year as a whole.
2. In the ordinary course of business the Company enters into
commitments to extend credit to its customers. These commitments are
not reflected in the accompanying consolidated financial statements
and Management does not expect any loss to result from such
commitments. As of March 31, 1995 and December 31, 1994 the Company
had entered into the following commitments:
<TABLE>
<CAPTION>
March 31, December 31,
1995 1994
<S> <C> <C>
Letters of Credit $ 726,000 $ 1,641,000
Undisbursed Loan Commitments $ 10,866,000 $ 12,895,000
</TABLE>
3. Earnings per share amounts have been computed using the weighted
average number of common shares and dilutive common equivalent shares
outstanding. The number of such primary shares are 1,710,429 for
March 31, 1995 and 1994.
4. Certain reclassifications have been made in the 1994 financial
statements to conform to the presentation used in 1995.
<PAGE> 6
<PAGE>
ITEM 2: MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
Management's Discussion and Analysis of Financial Condition and
Results of Operations is intended to provide a better understanding
of the material changes in trends relating to the financial condition,
results of operations, and liquidity of Sterling West Bancorp (the
"Company"). The discussion and analysis for the first quarter ended
March 31, 1995 reflect the operations of the Company's two subsidiary
companies, Sterling Bank ("Bank") and Sterling Business Credit, Inc.
("Business Credit"). The Bank and Business Credit are wholly-owned
subsidiaries of the Company. During the fourth quarter of 1994 the
Company decided to discontinue its mortgage banking operations which
were performed substantially by BSC Mortgage Corporation, a wholly
owned subsidiary of the Bank. Unless otherwise specified, the
discussion below relates to the Company's consolidated financial
condition and operations.
During the first quarter of 1995, the Company had net income of
$127,000 as compared to a net loss of $678,000 in the same quarter in
1994. Income from continuing operations was $127,000 in the first
quarter of 1995 compared to income from continuing operations of
$106,000 for the same period of 1994. The increase resulted from
lower net cost of operation of other real estate owned and lower
occupancy costs which more than offset a higher loan loss provision
at the Bank. The Company's real estate held for sale and nonaccrual
loans decreased to $7.3 million at March 31, 1995 from $13.1 million
at March 31, 1994 as compared to $9.5 million at December 31, 1994.
FINANCIAL CONDITION
Assets
At March 31, 1995 assets of the Company were $124,867,000, a decrease
of 5.8% from the $132,491,000 at December 31, 1994. The decreased
asset levels reflect the slow economic environment and the need to
reduce size in order to satisfy regulatory capital ratio requirements
applicable to the Company and the Bank. Significant changes in the
distribution of assets included a $4.4 million decrease in cash and
cash equivalents as required liquidity levels were reduced in the Bank
as a result of the discontinued mortgage banking operations.
The Company's real estate held for sale consists of real estate owned
and real estate investments, and decreased to $6.9 million at March
31, 1995 from $7.8 million at December 31, 1994 as compared to $11.2
million at March 31, 1994. During the first quarter one single family
residence with a book value of $0.1 million was added to real estate
held for sale. Two single family residences with a total book value
of $0.3 million and one apartment building with a book value of $0.7
million were sold. Properties held at March 31, 1995 consisted of six
single family residences, three apartment buildings, one four unit
condominium development, one residential lot development, four
residential lots and two commercial buildings. All properties are
<PAGE> 7
stated at the lower of cost or estimated fair market value less
estimated selling costs. Subsequent to March 31, 1995 one of the
apartment buildings and one of the single family residences with a
total book value of $0.8 million were in escrow or had been sold at
amounts approximating book value.
While management does not expect any substantial additional material
losses on the sale of these properties in excess of the allowances
already provided in the financial statements, because of the fact that
78% of the Bank's loan portfolio is real estate secured, management
expects that further foreclosures will occur and no assurance can be
given that additional losses will not occur. See "RESULTS OF
OPERATIONS - Net Interest Income" and "RESULTS OF OPERATIONS -
Noninterest Expense" for a description of the effect of these assets
on net interest income and noninterest expense.
Source of Funds
Total deposits were $98.0 million at March 31, 1995 compared to $107.1
million at December 31, 1994. The decrease primarily consisted of a
$4.6 million decrease in demand deposits, a $2.2 million decrease in
savings and NOW accounts and a $1.5 million decrease in money market
deposits. These deposit changes reflect normal fluctuations in these
accounts and the asset-liability management process at the Bank which
considered reduced funding needs as a result of the drop in assets.
There are statutory and regulatory limitations on the amount of
dividends which may be paid to the Company by the Bank as well as
statutory and contractual limitations on the amount of dividends which
may be paid to the Company by Business Credit. At March 31, 1995 the
Bank is prohibited from paying dividends under these provisions. The
Bank is also prohibited from paying cash dividends to the Company
under the terms of a memorandum of understanding with the FDIC unless
the payment is approved in advance by the Regional Director of the
FDIC and the State Superintendent of Banks. Please see "CAPITAL
RESOURCES" below for a discussion of the terms of this memorandum of
understanding. Business Credit is prohibited from the payment of
dividends to the Company by the terms of a $15 million line of credit
outstanding with Security Pacific Business Credit, Inc. ("SPBC")
without prior approval of SPBC. The line of credit matures on July
18, 1995 with automatic annual renewals, subject to sixty day
termination rights.
<PAGE> 8
<PAGE>
RESULTS OF OPERATIONS
Net Income
During the first quarter of 1995, the Company had net income of
$127,000 as compared to a net loss of $678,000 in the same quarter in
1994. The improvement primarily resulted from the discontinuance of
mortgage banking operations. Income from continuing operations was
essentially unchanged as improvement in net interest income and
decreases in expenses from real estate operations, net and occupancy
offset an increase in the loan loss provision. Interest income at the
Bank increased significantly in the first quarter of 1995 as compared
to the same period of 1994 as a result of a higher prime rate, but the
increase was partially offset by similar increases in interest
expense.
As a result of the California Northridge earthquake experienced in
January, 1994 the Company sustained damage to two properties held in
real estate held for sale. The Company charged $220,000 to real estate
operations, net in the first quarter of 1994 as the estimated cost of
repairs.
Net Interest Income
Net interest income is the difference between interest and fees earned
on earning assets and interest paid on deposits and other sources of
funds. Net interest income decreased 2.9% for the first quarter of
1995 as compared to the same period in 1994. The increase in the
Company's net interest income for the first quarter was due
substantially to a $0.5 million increase in interest income on loans
which more than offset a $0.4 million increase in interest expense.
The increase in interest income on loans resulted from the generally
higher level of interest rates, including the prime rate, during the
first quarter of 1995 as compared to the first quarter of 1994. The
increase in interest expense also resulted from the higher level of
interest rates. The increase in interest income was greater than the
increase in interest expense because the company's earning assets
repriced faster than its interest bearing liabilities.
The Bank's deposit mix also changed as a result of the normal asset-
liability changes directed by Bank management. These changes, which
were influenced by the discontinuance of the Company's mortgage
banking operations in the fourth quarter of 1994 and the need to
reduce asset size for capital ratio purposes, resulted in an increase
in savings accounts with interest rates tied to the prime rate and a
decrease in time deposits $100,000 or greater. The interest expense
related to those types of deposits changed accordingly.
Nonperforming assets, consisting of nonaccrual loans and real estate
held for sale, amounted to $8.6 million at March 31, 1995 compared to
$9.5 million at December 31, 1994 and $13.1 million at March 31, 1994.
Nonaccrual loans amounted to $1.8 million at March 31, 1995 as
compared to $1.7 million at December 31, 1994 and $3.1 million at
<PAGE> 9
March 31, 1994. Real estate held for sale decreased from $11.4 million
at March 31, 1994 and $7.8 million at December 31, 1994 and to $6.9
million at March 31, 1995. The decrease in real estate held for sale
in the first quarter is due to the sale of three properties with an
aggregate book value of $0.9 million. The high level of nonaccrual
loans and real estate held for sale results from the recessionary
environment in Southern California.
The Company expects that the continued ownership of these generally
non-earning assets will have a negative impact on net interest margin
and on net earnings of the Company in the short run. A high level of
non-earning assets negatively effects net interest income because the
Company incurs interest expense to finance the ownership of the asset
but earns no corresponding interest income. See "RESULTS OF
OPERATIONS - Allowance and Provision for Possible Loan Losses" below
for a description of the nonaccrual loans and
see "FINANCIAL CONDITION - Assets" above for a description of the real
estate held for sale.
Allowance and Provision for Possible Loan Losses
The provision for loan losses is determined by management based upon
the Company's loan loss experience, the performance of loans in the
Company's portfolio, the quality of loans in the Company's portfolio,
evaluation of collateral for such loans, the economic conditions
affecting collectibility of loans, the prospects and financial
condition of the respective borrowers or guarantors and such other
factors which in management's judgment deserve recognition in the
estimation of probable loan losses. In addition, regulatory agencies,
as an integral part of their examination process, periodically review
the Bank's allowance for loan losses. Such agencies may require the
Bank to recognize additions to the allowance or to take charge-offs
(reductions in the allowance) in anticipation of losses.
A substantial portion of the balance of the Company's loan portfolio,
including a substantial portion of its commercial, industrial and
agricultural loans, is secured by real estate collateral,
substantially all of which is located in Southern California. While
in most cases the amount of the loan is less than 75% of the appraised
value of the property or the cost of the project, the Company has
suffered from the recent effects of the downturn in the real estate
market and continues to be vulnerable to further such downturns.
At March 31, 1995, the allowance for possible loan losses was
$1,695,000 or 1.89% of total loans, as compared to $1,613,000, or
1.77% of total loans at December 31, 1994 and $1,977,000, or 2.17% of
total loans at March 31, 1994. The allowance for loan losses was 93%
of nonaccrual loans at March 31, 1995 as compared to 93% at December
31, 1994 and 64% at March 31, 1994. The Company generally maintains
a 15% allocation in its allowance for loan losses for nonaccrual loans
based on its historical loss ratio. During the first three months of
1995 the Company made additions to the allowance of $200,000 compared
to $25,000 during the same period in 1994. Reductions from the reserve
<PAGE> 10
in the form of net charge-offs amounted to $219,000 for the first
three months of 1995 as compared to $281,000 for the same period in
1994.
Nonaccrual loans amounted to $1.8 million at March 31, 1995 as
compared to $1.7 million at December 31, 1994 and $3.1 million at
March 31, 1994. These loans, at March 31, 1995 include six loans
which were more than 90 days past due at that date. One loan for $1.2
million is secured by junior liens on an office building in Long Beach
and a hotel in Los Angeles. Three loans for a total of $0.5 million
are secured by first trust deeds on single family residences. One
loan for $0.2 million is secured by a second trust deed on a
commercial property. The remaining loan is for less than $0.1 million
and is unsecured. The risk inherent in these loans, the strength of
the collateral and guarantees securing them as well as the decrease
in real estate values in Southern California has been taken into
consideration in determining the adequacy of the allowance for loan
losses.
The Company has established a separate allowance for repurchase losses
which amounted to $1.2 million at March 31, 1995 which is not included
in the allowance for loan losses but is carried in other liabilities.
The Company has also established a separate allowance for losses on
real estate held for sale which amounted to $0.1 million at March 31,
1995 which is not included in the allowance for loan losses but is
carried as a reduction of real estate held for sale.
Taking into account economic trends in Southern California and the
condition of the loan portfolio management believes that the allowance
for loan losses at December 31, 1994 was adequate to absorb known and
inherent risks in the loan portfolio. However, given the
deterioration in the market for real estate in the Southern California
area, no assurance can be given that the Company will not incur
additional losses on these loans.
Noninterest Income
Noninterest income for the first quarter of 1995 increased 2% to
$243,000 compared to $238,000 for the first quarter of 1994. This
increase is due to a $30,000 increase in other non-interest income,
including an $18,000 increase in rental income on foreclosure
property, which was offset by a $24,000 decrease in gain on the sale
of loans guaranteed by the Small Business Administration.
Noninterest Expense
Noninterest expense decreased 7% for the first quarter of 1995 to
$2,023,000 as compared to $2,168,000 for the same period of 1994
primarily as a result of the $129,000 decrease in real estate
operations, net. Results for 1994 included the $0.2 million of
estimated repairs for two properties damaged by the California
Northridge earthquake experienced in January, 1994.
<PAGE> 11
The continued high level of real estate operations, net results from
the high level of real estate held for sale. During the first quarter
of 1995 the Company incurred expenses of $50,000 for writedowns and
losses on other real estate owned and $35,000 for the maintenance and
operation of such properties. During the quarter the Company sold
three foreclosed properties and held general valuation reserves for
OREO properties at March 31, 1995 of $125,000.
CAPITAL RESOURCES
Management seeks to maintain a level of capital adequate to support
asset growth and credit risks and to ensure that the Company is within
established regulatory guidelines and industry standards. The Company
and the Bank are required to achieve risk-based capital standards and
leverage capital standards. The risk-based capital standards
establish capital requirements that are more sensitive to risk
differences between various assets, consider off balance sheet
activities in assessing capital adequacy and minimize the disincentive
to holding liquid, low risk assets. The Company and the Bank are
required to achieve a minimum 8.0% total capital to risk-weighted
assets ratio (of which at least 4.0% must be Tier 1 Capital consisting
primarily of common stock and retained earnings, less goodwill). The
following table sets forth the Company's and the Bank's risk based
capital ratios at March 31, 1995 (dollars in thousands).
<TABLE>
<CAPTION>
Company Bank
Amount Ratio Amount Ratio
<S> <C> <C> <C> <C>
Tier 1 Capital $10,486 10.54% $ 7,811 9.66%
Tier 1 Capital
minimum requirement 3,978 4.00 3,235 4.00
Excess 6,508 6.54 4,576 5.66
Total capital $ 11,728 11.79 $ 8,823 10.91
Total capital
minimum requirement 7,955 8.00 6,469 8.00
Excess 3,773 3.79 2,353 2.91
Risk-weighted
assets $ 99,439 $ 80,867
</TABLE>
The leverage ratio consists of tangible Tier 1 Capital divided by
total average assets. As of March 31, 1995, the Company and the Bank
had leverage ratios of 8.26% and 7.15%, respectively. Regulators have
established a minimum leverage ratio of 3.0% for the highest rated
banks. However, institutions experiencing or anticipating significant
growth, or those with other than minimum risk profiles, will be
expected to maintain capital well above the minimum.
The Bank is subject to the provisions of a memorandum of understanding
entered into in March, 1995 with the FDIC (the "Memorandum") which
replaced and superseded the provisions of a previous memorandum of
understanding. Under the Memorandum the Bank is required, among other
<PAGE> 12
things, to achieve and maintain Tier 1 capital equal to or above 6.75%
of total assets; charge off all assets classified "Loss" as of
September 26, 1994; reduce assets classified as "Substandard" as of
September 26, 1994 to not more than $7,500,000 by June 13, 1995, not
more than $6,500,000 by September 11, 1995 and not more than
$4,500,000 by March 10, 1996; establish and maintain an adequate
allowance for loan losses; develop a plan to control overhead and
other expenses; install procedures to correct certain internal routine
and control deficiencies; and not pay cash dividends without the prior
written consent of the FDIC and the California Superintendent of
Banks.
The Bank is currently in compliance and management believes that it
can continue to comply with the terms of the Memorandum, and otherwise
meet regulatory capital requirements, and that any actions taken to
so comply will not have a material adverse effect on the Company's
future financial condition or results of operations.
The Company suspended its quarterly cash dividends in the third
quarter of 1993. The Company expects that future cash dividends will
depend on a return to profitability and the maintenance of acceptable
financial results in the future.
The provision for income taxes for the three month period ended March
31, 1995 is as follows:
<TABLE>
<CAPTION>
Federal State Total
<S> <C> <C> <C>
Current $ 69,000 $ 15,000 $ 84,000
Deferred -- -- --
$ 69,000 $ 15,000 $ 84,000
</TABLE>
The provision for income taxes reflects an effective tax rate of 42%
on income before income taxes. The components of income tax expense
causing the variation from the expected statutory federal tax rate are
not significantly different than the amounts disclosed in the prior
year.
The following table shows the components of the current and deferred
tax asset recorded in the balance sheet at March 31, 1995:
Current $2,793,000
Deferred 135,000
Total $2,928,000
<PAGE> 13
PART II: OTHER INFORMATION
ITEM 6. Exhibits and Reports on 8-K.
(A) Exhibits: Exhibit 27 - Financial Data Schedule
(B) Reports on Form 8-K: None.
SIGNATURES
Pursuant to the requirement 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.
STERLING WEST BANCORP
(Registrant)
DATED: May 12, 1995 By:/s/Douglas B. Swets
Douglas B. Swets
Chief Financial Officer
(Principal Financial and
Accounting Officer)
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 9
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM STERLING
WEST BANCORP AND SUBSIDIARIES CONSOLIDATED FINANCIAL STATEMENTS AND IS QUALIFIED
IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<S> <C> <C>
<PERIOD-TYPE> 3-MOS 12-MOS
<FISCAL-YEAR-END> DEC-31-1995 DEC-31-1994
<PERIOD-END> MAR-31-1995 DEC-31-1994
<CASH> 15928 20294
<INT-BEARING-DEPOSITS> 194 97
<FED-FUNDS-SOLD> 12000 15742
<TRADING-ASSETS> 0 226
<INVESTMENTS-HELD-FOR-SALE> 0 0
<INVESTMENTS-CARRYING> 7063 6974
<INVESTMENTS-MARKET> 7028 6832
<LOANS> 89858 91075
<ALLOWANCE> 1694 1613
<TOTAL-ASSETS> 125243 132491
<DEPOSITS> 98037 107098
<SHORT-TERM> 13443 11900
<LIABILITIES-OTHER> 1786 1643
<LONG-TERM> 1493 1493
<COMMON> 8686 8686
0 0
0 0
<OTHER-SE> 1798 1671
<TOTAL-LIABILITIES-AND-EQUITY> 125243 132491
<INTEREST-LOAN> 3087 11376
<INTEREST-INVEST> 152 540
<INTEREST-OTHER> 97 520
<INTEREST-TOTAL> 3336 12436
<INTEREST-DEPOSIT> 771 2757
<INTEREST-EXPENSE> 1145 3986
<INTEREST-INCOME-NET> 2191 8450
<LOAN-LOSSES> 200 266
<SECURITIES-GAINS> 243 925
<EXPENSE-OTHER> 2023 9063
<INCOME-PRETAX> 211 46
<INCOME-PRE-EXTRAORDINARY> 211 46
<EXTRAORDINARY> 0 (2904)
<CHANGES> 0 0
<NET-INCOME> 127 (2875)
<EPS-PRIMARY> 0.07 (1.68)
<EPS-DILUTED> 0.07 (1.68)
<YIELD-ACTUAL> 0.021 0.073
<LOANS-NON> 1810 1730
<LOANS-PAST> 146 0
<LOANS-TROUBLED> 0 0
<LOANS-PROBLEM> 0 0
<ALLOWANCE-OPEN> 1613 2031
<CHARGE-OFFS> 19 729
<RECOVERIES> 0 47
<ALLOWANCE-CLOSE> 1694 1613
<ALLOWANCE-DOMESTIC> 0 0
<ALLOWANCE-FOREIGN> 0 0
<ALLOWANCE-UNALLOCATED> 0 0
</TABLE>
