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, 1997
--------------
OR
/ / Transition Report Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
For the transition period from to
---------- ----------
Commission File Number 0-10489
-----------
CENTENNIAL BANCORP
(Exact name of registrant as specified in its charter)
OREGON 93-0792841
(State of Incorporation) (I.R.S. Employer
Identification Number)
675 Oak Street
Eugene, Oregon 97401
(Address of principal executive offices)
(Zip Code)
(541) 342-3970
(Registrant's telephone number, including area code)
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 / /
<PAGE>
Indicate the number of shares outstanding of each of the issuer's classes
of common stock, as of latest practicable date:
6,551,418 shares as of April 28, 1997.
<PAGE>
CENTENNIAL BANCORP
FORM 10-Q
MARCH 31, 1997
INDEX
-----
Page
PART I - FINANCIAL INFORMATION Reference
- ------------------------------ ---------
Condensed Consolidated Balance Sheets as of 4
March 31, 1997 and December 31, 1996
Condensed Consolidated Statements of Income for 5
the three months ended March 31, 1997 and 1996
Condensed Consolidated Statements of Cash Flows 6
for the three months ended March 31,
1997 and 1996
Notes to Condensed Consolidated Financial Statements 7 - 10
Management's Discussion and Analysis of Financial
Condition and Results of Operations:
Overview 11
Material Changes in Financial Condition 12
Material Changes in Results of Operations 12 - 13
Loan Loss Provision 14
Liquidity and Capital Resources 14
PART II - OTHER INFORMATION
- ---------------------------
Item 6 - Exhibits and Reports on Form 8-K 15
Signatures 16
<PAGE>
CENTENNIAL BANCORP
CONDENSED CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
March 31, December 31,
1997 1996
------------- -------------
(Unaudited)
<S> <C> <C>
ASSETS
- ------
Cash and cash equivalents:
Cash and due from banks $ 24,197,925 $ 26,827,505
Interest-bearing balances due from banks -- 11,570,000
Federal funds sold 11,500,000 --
------------ ------------
Total cash and cash equivalents 35,697,925 38,397,505
Securities available-for-sale 70,037,757 82,654,422
Loans held for sale 1,764,824 3,537,996
Loans receivable, net 282,295,282 262,491,991
Federal Home Loan Bank stock 4,443,800 4,365,800
Accrued interest receivable 3,086,453 3,309,363
Premises and equipment, net 9,387,335 9,346,825
Other assets 3,726,001 3,081,702
------------ ------------
$410,439,377 $407,185,604
============ ============
LIABILITIES AND SHAREHOLDERS' EQUITY
- ------------------------------------
Liabilities:
Deposits:
Demand $ 78,622,547 $ 74,350,639
Interest-bearing demand 125,591,436 130,659,749
Savings 13,679,482 13,746,547
Time 122,310,813 121,198,310
------------ ------------
Total deposits 340,204,278 339,955,245
Short-term borrowings 13,180,486 12,315,583
Accrued interest and other liabilities 3,982,268 3,568,917
Long-term debt 10,000,000 10,000,000
------------ ------------
Total liabilities 367,367,032 365,839,745
Shareholders' equity:
Preferred stock, $5.00 par value; none issued
Non-voting, 5,000,000 shares authorized -- --
Voting, 5,000,000 shares authorized -- --
Common stock, $2.00 par value; 10,000,000 shares
authorized, 6,551,418 issued and outstanding
(6,535,447 at December 31, 1996) 13,102,836 13,070,894
Additional paid-in capital 11,208,324 11,137,171
Retained earnings 19,273,455 17,171,984
Unrealized losses on securities available-
for-sale, net of related taxes (512,270) (34,190)
------------ ------------
Total shareholders' equity 43,072,345 41,345,859
------------ ------------
$410,439,377 $407,185,604
============ ============
</TABLE>
See accompanying notes.
<PAGE>
CENTENNIAL BANCORP
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
<TABLE>
<CAPTION>
The Three Months Ended
March 31,
--------------------------
1997 1996
----------- ----------
<S> <C> <C>
INTEREST INCOME
Interest and fees on loans $7,638,396 $5,717,286
Interest on investment securities 1,207,776 1,205,873
Other interest income 94,368 156,497
---------- ----------
Total interest income 8,940,540 7,079,656
INTEREST EXPENSE
Interest on deposits 2,702,020 2,061,156
Interest on short-term borrowings 200,793 220,375
Interest on long-term debt 151,254 174,817
---------- ----------
Total interest expense 3,054,067 2,456,348
---------- ----------
NET INTEREST INCOME 5,886,473 4,623,308
Loan loss provision 800,000 150,000
---------- ----------
Net interest income after loan loss provision 5,086,473 4,473,308
NONINTEREST INCOME
Service charges 237,795 235,464
Other 797,747 126,507
Net gains on sales of loans 99,576 135,781
Net gains on sales of securities 29,309 --
---------- ---------
Total noninterest income 1,164,427 497,752
NONINTEREST EXPENSES
Salaries and employee benefits 2,089,031 1,755,173
Premises and equipment 491,171 441,302
Legal and professional 139,317 98,198
Advertising 100,325 110,524
Printing and stationery 90,582 68,529
Other 227,204 344,816
---------- ----------
Total noninterest expenses 3,137,630 2,818,542
---------- ----------
Income before income taxes 3,113,270 2,152,518
Provision for income taxes 1,011,800 699,600
---------- ----------
NET INCOME $2,101,470 $1,452,918
========== ==========
Earnings per share of common stock:
Primary $ .31 $ .26
Fully diluted $ .31 $ .24
Weighted average shares outstanding:
Primary 6,793,135 5,654,592
Fully diluted 6,793,135 6,652,484
</TABLE>
See accompanying notes.
<PAGE>
CENTENNIAL BANCORP
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
<TABLE>
<CAPTION>
The Three Months Ended
March 31,
--------------------------
1997 1996
------------ ------------
<S> <C> <C>
Net cash provided by operating activities $ 5,111,210 $ 1,964,127
Cash flows from investing activities:
Net increase in loans (20,603,291) (12,779,800)
Investment security purchases -- (14,825,926)
Proceeds from investment securities:
Maturities 852,296 1,879,900
Sales 11,020,078 --
Purchases of premises and equipment (296,905) (83,917)
----------- ------------
Net cash used by investing activities (9,027,822) (25,809,743)
Cash flows from financing activities:
Net increase in deposits 249,033 18,689,440
Net increase in short-term borrowings 864,903 8,370,401
Proceeds from issuance of common stock 103,096 70,709
----------- -----------
Net cash provided by financing activities 1,217,032 27,130,550
----------- -----------
Net increase (decrease) in cash and cash equivalents (2,699,580) 3,284,934
Cash and cash equivalents at beginning of period 38,397,505 36,721,459
----------- -----------
Cash and cash equivalents at end of period $35,697,925 $40,006,393
=========== ===========
</TABLE>
See accompanying notes.
<PAGE>
CENTENNIAL BANCORP
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
1. Basis of Presentation
---------------------
The interim condensed consolidated financial statements include the
accounts of Centennial Bancorp, a bank holding company ("Bancorp"), and its
wholly owned subsidiaries, Centennial Bank ("Bank") and Centennial Mortgage
Co. ("Mortgage Co."). The Bank is an Oregon state-chartered bank which
provides commercial banking services. Mortgage Co. originates residential
mortgage loans for resale in the secondary market.
The interim condensed consolidated financial statements are unaudited, but
include all adjustments, consisting only of normal accruals, which Bancorp
considers necessary for a fair presentation of the results of operations
for such interim periods.
All significant intercompany balances and transactions have been eliminated
in consolidation.
The interim condensed consolidated financial statements should be read in
conjunction with the consolidated financial statements, including the notes
thereto, included in Bancorp's 1996 Annual Report to Shareholders.
Certain amounts for 1996 have been reclassified to conform with the 1997
presentation.
<PAGE>
2. Loans and Reserve for Loan Losses
---------------------------------
The composition of the loan portfolio was as follows:
March 31, December 31,
1997 1996
------------ ------------
Real estate -- mortgage $ 67,731,954 $ 70,126,798
Real estate -- construction 73,106,534 66,243,687
Commercial 132,258,207 116,815,814
Installment 7,144,795 6,425,215
Lease financing 3,950,423 3,774,748
Other 2,343,692 2,634,659
------------ ------------
286,535,605 266,020,921
Reserve for loan losses (3,370,625) (2,599,653)
Less deferred loan fees (869,698) (929,277)
------------ ------------
$282,295,282 $262,491,991
============ ============
Loans held for sale of $1,765,000 and $3,538,000 at March 31, 1997 and
December 31, 1996, respectively, represent real estate mortgage loans.
These loans are recorded at cost which approximates market value.
Transactions in the reserve for loan losses were as follows for the three
months ended March 31:
1997 1996
----------- -----------
Balance at beginning of period $2,599,653 $1,928,372
Provision charged to operations 800,000 150,000
Recoveries 1,323 2,894
Loans charged off (30,351) (5,208)
---------- ----------
Balance at end of period $3,370,625 $2,076,058
========== ==========
At March 31, 1997, Bancorp had five loans requiring a specific valuation
allowance in accordance with Statement of Financial Accounting Standards
("SFAS") No. 114, as amended by SFAS No. 118 (two loans at December 31,
1996). The specific valuation allowance was $327,000 on loans with
remaining principal outstanding of $1,100,000 at March 31, 1997 ($300,000
and $1,100,000 at December 31, 1996). Each loan with a current outstanding
principal balance of less than $100,000 is grouped into one homogenous pool
when considering the valuation allowance.
<PAGE>
It is Bancorp's policy to place loans on nonaccrual status whenever the
collection of all or a part of the principal balance is in doubt. Loans
placed on nonaccrual status may or may not be contractually past due at the
time of such determination, and may or may not be secured by collateral.
Loans on nonaccrual status at March 31, 1997 and December 31, 1996 were
approximately $1,238,000 and $1,480,000, respectively.
Loans past due 90 days or more on which Bancorp continued to accrue
interest were approximately $680,000 at March 31, 1997, and approximately
$420,000 at December 31, 1996. There were no loans on which the interest
rates or payment schedules were modified from their original terms to
accommodate a borrower's weakened financial position at March 31, 1997 or
December 31, 1996.
3. Earnings per Share of Common Stock
----------------------------------
Primary earnings per common share is calculated by dividing net income by
the weighted average shares outstanding. Weighted average shares
outstanding consists of common shares outstanding and common stock
equivalents attributable to outstanding stock options.
Fully diluted earnings per share for 1996 is calculated by dividing net
income plus after-tax interest incurred on the 7% Convertible Debentures by
common shares outstanding, common stock equivalents attributable to
outstanding stock options, and shares assumed to be issued on conversion of
the Convertible Debentures. The Convertible Debentures were issued in 1994
and were called for redemption in December 1996.
The weighted average number of shares and common share equivalents have
been adjusted to give retroactive effect to stock splits and stock
dividends declared prior to March 31, 1997.
4. Financial Accounting Standards Board
------------------------------------
In February 1997, the Financial Accounting Standards Board adopted SFAS No.
128, "Earnings per Share," which is effective for financial statements
issued for periods ending after December 15, 1997. SFAS No. 128 establishes
standards for computing and presenting earnings per share, supersedes the
prior standards and makes the standards comparable to international
standards for the computation of earnings per share.
<PAGE>
SFAS No. 128 replaces the presentation of primary earnings per share with a
presentation of basic earnings per share. Basic earnings per share excludes
dilution and is computed by dividing income available to common
shareholders by the weighted-average number of common shares outstanding
for the period. SFAS No. 128 also requires dual presentation of basic and
diluted earnings per share on the income statement for certain companies,
and requires a reconcilement of the numerator and denominator of the basic
earnings per share to the numerator and denominator of the diluted earnings
per share computation. SFAS No. 128 also requires restatement of all prior
period earnings-per-share data presented.
Management has calculated that, if the provisions of SFAS No. 128 were
adopted as of January 1, 1997, Bancorp's primary earnings per share of $.31
for the three months ended March 31, 1997 would increase to basic earnings
per share of $.32 (primary earnings per share of $.26 for the three months
ended March 31, 1996 would increase to basic earnings per share of $.27).
There would be no effect on diluted earnings per share as reported.
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
THIS REPORT CONTAINS CERTAIN FORWARD-LOOKING STATEMENTS, WHICH ARE MADE
PURSUANT TO THE SAFE HARBOR PROVISIONS OF THE PRIVATE SECURITIES LITIGATION
REFORM ACT OF 1995. WHEN USED IN THIS REPORT, THE WORDS "ANTICIPATE," "BELIEVE"
AND "EXPECT," AND WORDS OR PHRASES OF SIMILAR IMPORT, ARE INTENDED TO IDENTIFY
FORWARD-LOOKING STATEMENTS. SUCH STATEMENTS ARE SUBJECT TO CERTAIN RISKS AND
UNCERTAINTIES THAT COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE
ANTICIPATED. FACTORS THAT COULD CAUSE OR CONTRIBUTE TO SUCH DIFFERENCES INCLUDE:
CHANGES IN GENERAL BUSINESS AND ECONOMIC CONDITIONS, PARTICULARLY IN OREGON;
CHANGES IN THE INTEREST RATE ENVIRONMENT; COMPETITIVE FACTORS, INCLUDING
INCREASED COMPETITION AND INTEREST RATE PRESSURES; CHANGES IN REGULATORY OR
OTHER EXTERNAL FACTORS; AND OTHER FACTORS LISTED FROM TIME TO TIME IN BANCORP'S
SEC REPORTS, INCLUDING BUT NOT LIMITED TO, EXHIBIT 99.1 TO BANCORP'S FORM 10-K
FOR THE YEAR ENDED DECEMBER 31, 1996, WHICH IS INCORPORATED HEREIN BY REFERENCE.
READERS ARE CAUTIONED NOT TO PLACE UNDUE RELIANCE ON THESE FORWARD-LOOKING
STATEMENTS, WHICH SPEAK ONLY AS OF THE DATE HEREOF. BANCORP DOES NOT INTEND TO
UPDATE THESE FORWARD-LOOKING STATEMENTS.
OVERVIEW
- --------
Centennial Bancorp reported net income of $2.1 million, or $.31 per share,
for the three months ended March 31, 1997. This represented a 45% increase in
net income, as compared to $1.5 million, or $.26 per share, for the three months
ended March 31, 1996. The increased earnings reflected primarily the expansion
of Bancorp's interest-earning assets and increased net interest income. At March
31, 1997, Bancorp recognized a 19% increase in assets and in interest-earning
assets as compared to March 31, 1996.
The net income added to shareholders' equity during the first quarter of
1997 was offset in part by a decrease in the value of Bancorp's securities
available-for-sale. This decrease in value resulted from an increase in interest
rates which caused bond prices to decrease. Management believes that the net
unrealized loss on securities available-for-sale, net of related taxes, could be
reduced during the remainder of 1997 if interest rates and the bond market
stabilize. However, the net unrealized loss on securities available-for-sale
will increase if interest rates continue to rise.
<PAGE>
MATERIAL CHANGES IN FINANCIAL CONDITION
- ---------------------------------------
The material change in Bancorp's financial condition for the three months
ended March 31, 1997 was an increase in loans. Funds were provided for this
increase primarily from maturities and sales of securities available-for-sale,
and from net income.
During the quarter ended March 31, 1997, Bancorp experienced an increase in
loans of $19.7 million at March 31, 1997 as compared to December 31, 1996. This
increase was primarily due to commercial loan activity of the Bank, but was also
due to an increase in real estate construction lending.
Bancorp experienced a modest increase of $249,000 in total deposits during
the quarter ended March 31, 1997. In most prior years, Bancorp has experienced a
decrease in deposits during all or part of the first quarter of the year, with
deposit activity increasing significantly the remainder of each year. Although
Bancorp did not experience this decrease in deposits during the first quarters
of 1994 or 1996, Bancorp's growth in deposits was modest during the first
quarter of 1995. Management believes that Bancorp's modest deposit increase
during the first quarter of 1997 is consistent with Bancorp's historical
patterns.
Because of the limited growth in deposits experienced during the quarter
ended March 31, 1997, management liquidated $11.0 million of securities
available-for-sale to accommodate the increase in loans. Despite the poor bond
market during the first quarter of 1997, sales of these securities generated
$29,000 of profits.
Cash and cash equivalents decreased $2.7 million at March 31, 1997 as
compared to December 31, 1996. Cash and cash equivalents can fluctuate
significantly on a day-to-day basis and are subject to disbursements of loan
proceeds to borrowers, payment of loans by borrowers, submission of checks
deposited by customers to other banks for payment and payment to other banks by
Bancorp for checks drawn against customer accounts.
All other changes experienced in asset and liability categories during the
first quarter of 1997 were comparatively modest.
MATERIAL CHANGES IN RESULTS OF OPERATIONS
- -----------------------------------------
Total interest income increased $1.9 million during the three months ended
March 31, 1997 as compared to the same period in 1996. This increase was due in
part to the increase in the amount of loans held during the first quarter of
1997 as compared to the first quarter of 1996, but was also due to higher
interest rates payable on loans. The increase in interest earned on loans was
offset in part by a decrease in other interest income, which represents
Bancorp's decreased liquidity due to the modest growth in total deposits.
<PAGE>
Total interest expense increased $598,000 for the three months ended March
31, 1997 as compared to the same period in 1996. This increase was due to the
increase in interest-bearing deposits held during the first quarter of 1997 as
compared to the first quarter of 1996 and an increase in interest rates paid on
those deposits.
The increase in interest earned, offset in part by the increase in interest
paid, served to increase Bancorp's net interest income by $1.3 million (or 27%)
over the first quarter of 1996.
Noninterest income increased $667,000 for the three months ended March 31,
1997 as compared to the 1996 period. This increase is primarily attributable to
receipt of a settlement payment for a claim the Bank brought against former
legal counsel.
The increase in noninterest income recognized during the three months ended
March 31, 1997 was offset in part by a decrease in gains on sales of residential
mortgage loans. That decrease was primarily attributable to the increased
interest rate environment experienced during first quarter 1997 as compared to
the same period in 1996.
Noninterest expense increased $319,000 for the three months ended March 31,
1997 as compared to the 1996 period. This increase is primarily attributable to
increases in salaries and employee benefits and premises and equipment, which
were offset in part by a decrease in other expense.
Salaries and employee benefits increased $334,000 during the 1997 period as
compared to the 1996 period, which was primarily due to additions to the Bank's
staff to manage the increase in assets and to operate the additional branch
office of the Bank that opened in the Portland area in January 1997.
The increase of $50,000 in premises and equipment in the first quarter of
1997 is the result of opening the additional Portland branch office and
additional depreciation for data processing equipment.
The decrease of $118,000 in other expense was due in part to the recapture
of a contingency reserve established in a prior period, which management deemed
no longer necessary.
<PAGE>
LOAN LOSS PROVISION
- -------------------
During the three months ended March 31, 1997, Bancorp charged an $800,000
loan loss provision to operations, as compared to $150,000 charged during the
three months ended March 31, 1996. Loans charged off, net of recoveries, during
the three months ended March 31, 1997 were $29,000, as compared to $2,000 for
the 1996 three-month period.
Bancorp's reserve for loan losses was $3.4 million at March 31, 1997 as
compared to $2.1 million at March 31, 1996 and $2.6 million at December 31,
1996.
Management believes that the reserve for loan losses is adequate for
potential loan losses, based on management's assessment of various factors,
including present delinquent and nonperforming loans, past history of industry
loan loss experience, and present and anticipated future economic trends
impacting the area and customers served by Bancorp.
LIQUIDITY AND CAPITAL RESOURCES
- -------------------------------
Bancorp's principal subsidiary, Centennial Bank, has adopted policies to
maintain a relatively liquid position to enable it to respond to changes in the
Bank's needs and financial environment. Generally, the Bank's major sources of
liquidity are customer deposits, sales and maturities of available-for-sale
securities, the use of federal funds markets and net cash provided by operating
activities. Scheduled loan repayments are a relatively stable source of funds,
while deposit inflows and unscheduled loan prepayments, which are influenced by
general interest rate levels, interest rates available on other investments,
competition, economic conditions and other factors, are not.
Along with federal funds lines, the Bank maintains a cash management
advance with Federal Home Loan Bank, Seattle, Washington, which allows temporary
borrowings for liquidity.
At March 31, 1997, Bancorp's Tier 1 and total risk-based capital ratios
under the Federal Reserve Board's ("FRB") risk-based capital guidelines were
approximately 12.3% and 13.3%, respectively. The FRB's minimum risk-based
capital ratio guidelines for Tier 1 and total capital are 4% and 8%,
respectively.
At March 31, 1997, Bancorp's capital-to-assets ratio under leverage ratio
guidelines was approximately 10.8%. The FRB's current minimum leverage capital
ratio guideline is 3%.
<PAGE>
PART II - OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K.
- -----------------------------------------
(a) Exhibits
27 Financial Statement Schedule
(b) Reports on Form 8-K. None
<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.
CENTENNIAL BANCORP
Dated: May 2, 1997 /s/ Richard C. Williams
-----------------------------------
Richard C. Williams
President & Chief Executive Officer
Dated: May 2, 1997 /s/ Michael J. Nysingh
-----------------------------------
Michael J. Nysingh
Chief Financial Officer
<TABLE> <S> <C>
<ARTICLE> 9
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM CENTENNIAL
BANCORP'S CONSOLIDATED FINANCIAL STATEMENTS CONTAINED IN ITS QUARTERLY REPORT ON
FORM 10-Q FOR THE PERIOD ENDED MARCH 31, 1997 AND IS QUALIFIED IN ITS ENTIRETY
BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> MAR-31-1997
<CASH> 24,197,925
<INT-BEARING-DEPOSITS> 0
<FED-FUNDS-SOLD> 11,500,000
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 70,037,757
<INVESTMENTS-CARRYING> 0
<INVESTMENTS-MARKET> 0
<LOANS> 285,665,907
<ALLOWANCE> 3,370,625
<TOTAL-ASSETS> 410,439,377
<DEPOSITS> 340,204,278
<SHORT-TERM> 13,180,486
<LIABILITIES-OTHER> 3,982,268
<LONG-TERM> 10,000,000
0
0
<COMMON> 13,102,836
<OTHER-SE> 29,969,509
<TOTAL-LIABILITIES-AND-EQUITY> 410,439,377
<INTEREST-LOAN> 7,638,396
<INTEREST-INVEST> 1,207,776
<INTEREST-OTHER> 94,368
<INTEREST-TOTAL> 8,940,540
<INTEREST-DEPOSIT> 2,702,020
<INTEREST-EXPENSE> 3,054,067
<INTEREST-INCOME-NET> 5,886,473
<LOAN-LOSSES> 800,000
<SECURITIES-GAINS> 29,309
<EXPENSE-OTHER> 3,137,630
<INCOME-PRETAX> 3,113,270
<INCOME-PRE-EXTRAORDINARY> 2,101,470
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 2,101,470
<EPS-PRIMARY> .31
<EPS-DILUTED> .31
<YIELD-ACTUAL> 0<F1>
<LOANS-NON> 1,238,000
<LOANS-PAST> 680,000
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 2,599,653
<CHARGE-OFFS> 30,351
<RECOVERIES> 1,323
<ALLOWANCE-CLOSE> 3,370,625
<ALLOWANCE-DOMESTIC> 3,370,625
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
<FN>
<F1> INFORMATION NOT CALCULATED FOR INTERIM REPORTS.
</FN>
</TABLE>
