SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
/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
For the transition period from to
Commission file number 2-77519-LA
SARATOGA BANCORP
(Exact name of registrant as specified in its charter)
California 94-2817587
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
12000 Saratoga-Sunnyvale Road
Saratoga, California 95070
(Address of principal executive offices) (Zip Code)
Registrant's telephone number including area code (408) 973-1111
NONE
(Former name, former address and former fiscal year, if changed since last
report)
Indicate by checkmark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act
of 1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days.
Yes X No
Indicate the number of shares outstanding of each of the issuer's
classes of common stock as of the latest practicable date.
CLASS SHARES OUTSTANDING AT APRIL 13, 1995
Common Stock 1,030,972
Page 1 of 15 pages
<PAGE> 2
<TABLE>
PART I - FINANCIAL INFORMATION
SARATOGA BANCORP AND SUBSIDIARY
CONSOLIDATED CONDENSED BALANCE SHEETS
<CAPTION>
March 31, December 31,
1995 1994*
(Unaudited)
<S> <C> <C>
ASSETS
Cash and due from banks $2,977,000 $6,514,000
Federal funds sold 3,000,000 3,500,000
Short-term interest bearing
deposits in other banks - 250,000
Total cash and equivalents 5,977,000 10,264,000
Investments available for sale 15,094,000 14,810,000
Investments held to maturity 24,189,000 23,963,000
Loans, net 32,839,000 32,803,000
Other real estate owned 2,406,000 1,717,000
Premises and equipment 2,151,000 2,195,000
Other assets 1,971,000 1,784,000
TOTAL ASSETS $84,627,000 $87,536,000
=========== ===========
LIABILITIES
Deposits:
Non-interest bearing $15,876,000 $19,555,000
Interest bearing 53,729,000 54,317,000
Total deposits 69,605,000 73,872,000
Federal funds purchased - 1,500,000
Other borrowings 4,270,000 2,000,000
Accrued expenses and other
liabilities 794,000 537,000
TOTAL LIABILITIES 74,669,000 77,909,000
SHAREHOLDERS' EQUITY
Common stock, no par value
Authorized: 20,000,000 shares
Issued and outstanding:
1,030,972 shares 4,427,000 4,427,000
Retained earnings 6,162,000 6,019,000
Net unrealized loss on investments
available for sale (631,000) (819,000)
TOTAL SHAREHOLDERS' EQUITY 9,958,000 9,627,000
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $84,627,000 $87,536,000
=========== ===========
<FN>
*Derived from the December 31, 1994 audited balance sheet included
in the Company's 1994 Annual Report on Form 10-K.
See notes to consolidated condensed financial statements.
</TABLE>
<PAGE> 3
<TABLE>
SARATOGA BANCORP AND SUBSIDIARY
CONSOLIDATED CONDENSED STATEMENTS OF INCOME (Unaudited)
<CAPTION>
Three Months Ended
March 31,
1995 1994
<S> <C> <C>
INTEREST INCOME:
Loans $ 907,000 $875,000
Investment securities 631,000 253,000
Federal funds sold 33,000 188,000
Total interest income 1,571,000 1,316,000
INTEREST EXPENSE:
Deposits 574,000 449,000
Other 55,000 1,000
Total interest expense 629,000 450,000
NET INTEREST INCOME 942,000 866,000
Provision(credit) for credit losses - (200,000)
Net interest income after provision
(credit) for credit losses 942,000 1,066,000
Other income 101,000 103,000
Other expense 720,000 889,000
INCOME BEFORE INCOME TAXES 323,000 280,000
Provision for income taxes 129,000 96,000
NET INCOME $194,000 $184,000
=========== ===========
NET INCOME PER COMMON AND
EQUIVALENT SHARE $0.18 $0.15
=========== ===========
<FN>
See notes to consolidated condensed financial statements.
</TABLE>
<PAGE> 4
<TABLE>
SARATOGA BANCORP AND SUBSIDIARY
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (UNAUDITED)
<CAPTION>
Three Months Ended
March 31,
1995 1994
<S> <C> <C>
OPERATIONS:
Net income $ 194,000 $ 184,000
Adjustments to reconcile net income
to net cash provided by(used in)
operating activities:
Provision(credit) for credit losses - (200,000)
Depreciation and amortization 69,000 36,000
Provision for OREO losses - 200,000
Other, net (50,000) (494,000)
Net cash provided by(used in)
operating activities 213,000 (274,000)
INVESTMENT ACTIVITIES:
Proceeds from maturities of investment
securities 147,000 227,000
Purchase of investment securities (373,000) -
Net (increase)decrease in loans (752,000) 241,000
Purchases of premises and equipment (25,000) (2,000)
Proceeds from sale of OREO - 529,000
Net cash (used in)provided by
investment activities (1,003,000) 995,000
FINANCING ACTIVITIES:
Net (decrease)increase in deposits (4,267,000) 5,330,000
Repurchase of common stock - (280,000)
Decrease in federal funds purchased (1,500,000) (2,000,000)
Increase in other borrowings 2,270,000 -
Net cash (used in)provided by financing
activities (3,497,000) 3,050,000
NET (DECREASE)INCREASE IN CASH
AND EQUIVALENTS (4,287,000) 3,771,000
Cash and equivalents at beginning of period 10,264,000 11,292,000
Cash and equivalents at end of period $ 5,977,000 $15,063,000
=========== ===========
<FN>
See notes to consolidated condensed financial statements.
</TABLE>
<PAGE> 5
SARATOGA BANCORP AND SUBSIDIARY
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
1. The unaudited consolidated condensed financial statements reflect all
adjustments (which include only normal recurring adjustments) which are, in
the opinion of management, necessary to state fairly the results for the
periods presented. The results for the periods are not necessarily
indicative of the results to be expected for the full fiscal year.
2. Per share amounts are calculated using the weighted average shares
outstanding plus the dilutive effect of shares issuable under stock option
plans. The number of shares used to compute income per common and
equivalent share was 1,058,588 shares for the three month period ended March
31, 1995 (1,191,144 shares for the comparable period in 1994).
3. For the three months ended March 31, 1995 there was no cash paid for
taxes ($335,000 for the three months ended March 31, 1994). Cash paid for
interest was $564,000 and $436,000, respectively.
4. In May, 1993, the FASB issued SFAS No. 115, "Accounting for Certain
Investments in Debt and Equity Securities." SFAS No. 115 became effective
in the first quarter of 1994 and requires the Company to classify debt and
equity securities into one of three categories at acquisition: held-to-maturity,
trading or available-for-sale. Investments in debt securities
shall be classified as held-to-maturity and measured at amortized cost only
if the Company has the positive intent and ability to hold such securities
to maturity. All other investments in debt and equity securities that have
readily determinable fair values shall be classified either as trading
securities, which are bought and held principally for the purpose of selling
them in the near term and are carried at market value with a corresponding
recognition of unrealized holding gain or loss in results of operations, or
as available-for-sale securities, which are all other securities and are
carried at market value with a corresponding recognition of the unrealized
holding gain or loss as a net amount in a separate component of
shareholders' equity until realized.
5. On March 31, 1995, the Company adopted FASB Statement No.
114, "Accounting by Creditors for Impairment of a Loan." This standard was
further modified by SFAS No. 118, "Accounting by Creditors for Impairment of
a loan----Income Recognition and Disclosures." SFAS No. 114 and 118 require
the Company to measure impaired loans based upon the present value of
expected future cash flows discounted at the loan's effective interest rate,
except as a practical expedient, a creditor may measure impairment based on
a loan's observable market price, or the fair value of the collateral if the
loan is collateral-dependent. A loans 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. Management does not believe that applying the provisions of
these financial statements will have a material effect on the Company's
financial position or results of operations in the foreseeable future.
<PAGE> 6
SARATOGA BANCORP AND SUBSIDIARY
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations.
Summary of financial results
At March 31, 1995, total assets were $84,627,000, a decrease of
$2,909,000 (3.3%) from $87,536,000 at December 31, 1994. Net loans
increased $36,000 (0.1%) from $32,803,000 at December 31, 1994 to
$32,839,000 at March 31, 1995. Total deposits decreased $4,267,000
(5.8%) from $73,872,000 at year end 1994 to $69,605,000 at March 31,
1995.
Net income for the first quarter of 1995 was $194,000 or $.18 per share
compared to $184,000 or $.15 per share for the comparable period in
1994.
The increase in net income resulted primarily from growth in the volume
and yield of earning assets, offset, in part, by an increase in interest
expense due to the increased volume and yield on interest-bearing
liabilities.
Results of operations
An analysis of the results of operations of the Company for the first
quarter of 1995 compared to the first quarter of 1994 is presented
below:
<PAGE> 7
Net interest income
Net interest income, the difference between interest earned on loans and
investments and interest paid on deposits, is the principal component
of the Bank's earnings. The components of net interest income are as
follows:
<TABLE>
<CAPTION>
Three months ended March 31,
1995 1994
Average Average Average Average
Balance Interest Yield(1) Balance Interest Yield(1)
(In thousands, except percentages) Assets:
(Unaudited)
<S> <C> <C> <C> <C> <C> <C>
Interest
earning assets:
Federal funds sold $ 2,359 $ 33 5.6% $14,260 $ 188 5.3%
Investment
securities 38,768 631 6.5 21,254 253 4.8
Loans (2) 32,627 907 11.1 34,786 875 10.1
Total interest
earning assets 73,754 1,571 8.5 70,300 1,316 7.5
Cash and due from
banks 3,985 4,188
Other assets (3) 5,305 3,250
$83,044 $77,738
======= =======
Liabilities and
Shareholders'
Equity:
Interest-bearing
liabilities:
Demand deposits $24,902 134 2.2 $22,075 151 2.7
Time deposits 30,256 440 5.8 27,700 298 4.3
Other borrowings 2,362 55 9.3 133 1 3.0
Total interest-
bearing
liabilities 57,520 629 4.4 49,908 450 3.6
Demand deposits 14,910 16,091
Other liabilities 767 1,032
Total liabilities 73,197 67,031
Shareholders' equity 9,847 10,707
$83,044 $77,738
======= =======
Net interest income and margin $ 942 5.1% $ 866 4.9%
====== ======
<FN>
(1) Annualized
(2) Loan interest income included loan fee income of $81,000 and $117,000
for the quarters ended March 31, 1995 and 1994, respectively.
(3) Net of the average allowance for loan losses of $762,000 and $1,199,000,
and deferred loan fees of $221,000 and $198,000 for the quarters ended
March 31, 1995 and 1994, respectively.
</TABLE>
<PAGE> 8
Provision for credit losses
The Bank maintains an allowance for possible credit losses which is
based, in part, on the Bank's historical loss experience, the impact of
forecasted economic conditions within the Bank's market area, and, as
applicable, the State of California, the value of underlying collateral,
loan performance and the inherent risks in the loan portfolio. The
allowance is reduced by charge-offs and increased by provisions for
credit losses charged to operating expense and recoveries of previously
charged-off loans. During the first quarter of 1995 and 1994, the Bank
did not provide any additional funds to the allowance for credit losses.
There were $5,000 in loans charged-off and $55,000 in recoveries in the
first quarter of 1995, as compared to $25,000 in loans charged-off and
$23,000 in recoveries in the first quarter of 1994.
At March 31, 1995, the allowance for credit losses was $788,000 or
approximately 2.3% of total loans, compared to $738,000 or approximately
2.2% at December 31, 1994. There were no nonaccrual loans at March 31,
1995 ($707,000 at December 31, 1994).
At March 31, 1995 and December 31, 1994 , there were no loans past due
90 days or more as to principal or interest and still accruing interest.
There was one loan at March 31, 1995 in the amount of $212,000 which was a
troubled debt restructuring as defined in Statement of Financial Accounting
Standards No. 15, "Accounting by Debtors and Creditors for Troubled Debt
Restructuring." There were seven potential problem loans at March 31, 1995.
Potential problem loans are loans which are generally current as to principal
and interest but have been identified by the Company as potential problem loans
due either to a decrease in the underlying value of the property securing the
credit or some other deterioration in the creditworthiness of the borrower.
Other real estate owned totalled $2,406,000 at March 31, 1995
($1,717,000 at December 31, 1994). Other real estate owned consisted
of a single family residence, a commercial building and a 12 lot
subdivision all with appraised values in excess of the Bank's carrying
values. The Company does not intend to hold the properties but will
actively market the properties as market conditions improve.
Nonperforming assets are summarized below:
<TABLE>
<CAPTION>
March 31, 1995 December 31, 1994
<S> <C> <C>
Nonperforming loans:
Past due 90 days or more
and still accruing $ - $ -
Nonaccrual - 707,000
Total - 707,000
Other real estate owned 2,406,000 1,717,000
Total nonperforming assets $2,406,000 $2,424,000
========== ==========
</TABLE>
<PAGE> 10
Management is of the opinion that the allowance for credit losses is
maintained at an adequate level for known and currently anticipated
future risks inherent in the loan portfolio. However, the California
economy has continued to demonstrate signs of weakness since the third
quarter of 1990 and into 1995 and the period covered by this report, and
the Bank's loan portfolio, which includes approximately $18,000,000 in
real estate loans representing approximately 54% of the portfolio, has
been and could continue to be adversely affected if California economic
conditions and the real estate market in the Bank's market area continue
to weaken. The effect of such events, although uncertain at this time,
has resulted, and could continue to result, in an increase in the level
of nonperforming loans and OREO and the level of the allowance for loan
losses, which could adversely affect the Company's and the Bank's future
growth and profitability.
Noninterest income
Other income consists of service charges on deposit accounts, income
from assets acquired for lease and fees for other miscellaneous
services. Total other income did not change significantly, and was
$103,000 in the first quarter 1994 and $101,000 in the first quarter of
1995.
Noninterest expense
Noninterest expense decreased from $889,000 in the first quarter of 1994
to $720,000 in the first quarter of 1995 due, in large part, to a
provision of $200,000 for OREO losses recognized in the first quarter
of 1994. As a percentage of average earning assets, other expenses, on
an annualized basis, were 5.1% and 3.9% in 1994 and 1995, respectively.
The FDIC adopted a regulation pursuant to Section 302 (a) of the Federal
Deposit Insurance Corporation Improvement Act of 1991, effective on
November 2, 1993, amending its regulations on insurance assessments to,
among other matters, adopt a recapitalization schedule for the Bank
Insurance Fund and establish a transitional risk-based insurance system
to replace the uniform assessment rate system previously applicable to
insured financial institution members of the Bank Insurance Fund. The
annual assessment rate for each insured institution continued at the
rate of $0.23 per $100 of deposits through year end December 31, 1992.
Commencing January 1, 1993, the assessment rate was based upon a risk
assessment schedule with rates ranging from $0.23 to $0.31 per $100 of
deposits. On June 25, 1993 the FDIC adopted a permanent risk-based
insurance system without substantial modification. FDIC premiums were
$39,000 or 5.4% of non-interest expense, for the first quarter of 1995,
as compared to $41,000 or 4.6% for the first quarter of 1994. Based
upon the risk assessment rate system and the Bank's current level of
deposits, the Bank estimates that its annual non-interest assessment
expense will not be increased materially during 1995. The Company and
the Bank cannot predict whether
<PAGE> 11
additional increases in assessment rates
may continue as part of the recapitalization of the Bank Insurance Fund.
The effect of any such increases in assessments will be to increase the
noninterest expense to the Company and the Bank.
Liquidity and capital resources
The Bank manages its liquidity to provide adequate funds at an
acceptable cost to support borrowing requirements and deposit flows of
its customers. At March 31, 1995, liquid assets as a percentage of
deposits were 22% (34% at December 31, 1994). In addition to cash and
due from banks, liquid assets include short-term interest-bearing
deposits with other banks, Federal funds sold and investment securities.
The Bank has $8.9 million in Federal funds lines of credit available
with correspondent banks to meet liquidity needs.
Management regularly reviews general economic and financial conditions,
both external and internal, and determines whether the positions taken
with respect to liquidity and interest rate sensitivity continue to be
appropriate. The Bank also utilizes a monthly "gap" report which
identifies rate sensitivity over the short- and long-term.
The following table sets forth the distribution of repricing
opportunities, based on contractual terms, of the Company's earning
assets and interest-bearing liabilities at March 31, 1995, the interest
rate sensitivity gap (i.e. interest rate sensitive assets less interest
rate sensitive liabilities), the cumulative interest rate sensitivity
gap, the interest rate sensitivity gap ratio (i.e. interest rate
sensitive assets divided by interest rate sensitive liabilities) and the
cumulative interest rate sensitivity gap ratio.
Based on the contractual terms of its assets and liabilities, the Bank
is currently liability sensitive in terms of its short-term exposure to
interest rates. In other words, the Bank's short-term liabilities
reprice faster than its assets.
<PAGE> 12
<TABLE>
DISTRIBUTION OF REPRICING OPPORTUNITIES
At March 31, 1995
(Dollars in thousands)
<CAPTION>
After Three After Six After One
Within Months But Months But Year But After
Three Within Six Within One Within Five
Months Months Year Five Years Years Total
<S> <C> <C> <C> <C> <C> <C>
Federal funds sold $ 3,000 - - - - $3,000
Municipal securities - - $ 201 $2,185 $703 3,089
U.S. Treasury and
agency securities 4,920 - - 14,955 15,537 35,412
FRB/FHLB stock - - - - 782 782
Loans 20,156 $2,464 1,255 7,371 2,589 33,835
------- ------- ------- ------- ------- -------
Total earning assets $28,076 $2,464 $1,456 $24,511 $19,611 $76,118
------- ------- ------- ------- ------- -------
Interest bearing
demand deposits $23,215 - - - - $23,215
Savings accounts 4,639 - - - - 4,639
Time certificates of
deposit of $100,000
or more 2,865 $721 $2,278 $1,023 - 6,887
Other time deposits 3,176 3,163 6,814 5,835 - 18,988
Other borrowings - - 2,000 1,870 400 4,270
------- ------- ------- ------- ------- -------
Total interest-bearing
liabilities $33,895 $3,884 $11,092 $ 8,728 $ 400 $57,999
------- ------- ------- ------- ------- ------
Interest rate
sensitivity gap $(5,819) $(1,420) $(9,636) $15,783 $19,211 $18,119
======= ======= ======= ======= ======= =======
Cumulative interest
rate sensitivity
gap $(5,819) $(7,239) $(16,875) $(1,092) $18,119
======= ======= ======== ======= =======
Interest rate
sensitivity gap
ratio 0.83% 0.63% 0.13% 2.81% N/A
Cumulative interest
rate sensitivity
gap ratio 0.83% 0.81% 0.65% 0.98% 1.32%
</TABLE>
<PAGE> 13
The Company and the Bank are subject to capital adequacy guidelines
issued by the Board of Governors of the Federal Reserve System (the
"BGFRS") and the Office of the Comptroller of the Currency ("OCC"). The
Company and the Bank are required to maintain total capital equal to at
least 8% of assets and commitments to extend credit, weighted by risk,
of which at least 4% must consist primarily of common equity including
retained earnings (Tier 1 capital) and the remainder may consist of
subordinated debt, cumulative preferred stock or a limited amount of
loan loss reserves. Certain assets and commitments to extend credit
present less risk than others and will be assigned to lower risk-weighted
categories requiring less capital allocation than the 8% total
ratio. For example, cash and government securities are assigned to a 0%
risk-weighted category, most home mortgage loans are assigned to a 50%
risk-weighted category requiring a 4% capital allocation and commercial
loans are assigned to a 100% risk-weighted category requiring an 8%
capital allocation. As of March 31, 1995, the Company's total risk-based
capital ratio was approximately 22.3% (approximately 21.8% for the
Bank) compared to approximately 22.2% (approximately 21.6% for the Bank)
at December 31, 1994.
The BGFRS and OCC adopted a 3% minimum leverage ratio for banking
organizations as a supplement to the risk-weighted capital guidelines.
The minimum leverage ratio is intended to limit the ability of banking
organizations to leverage their equity capital base by increasing assets
and liabilities without increasing capital proportionately. The 3%
minimum leverage ratio constitutes a minimum ratio for well-run banking
organizations. Organizations experiencing or anticipating significant
growth or failing to meet certain BGFRS standards will be required to
maintain a minimum leverage ratio ranging from 100 to 200 basis points
in excess of the 3% ratio.
The following table reflects the Company's leverage, Tier 1 and total
risk-based capital ratios for the quarter ended March 31, 1995 and the
year ended December 31, 1994.
March 31, 1995 December 31, 1994
Leverage ratio 12.3% 12.2%
Tier 1 capital ratio 21.0% 20.9%
Total risk-based capital ratio 22.3% 22.2%
On December 19, 1991, President Bush signed the Federal Deposit
Insurance Corporation Improvement Act of 1991 ("FDICIA"). The FDICIA,
among other matters, substantially revises banking regulations and
established a framework for determination of capital adequacy of
financial institutions. Under the FDICIA, financial institutions are
placed into one of five capital adequacy catagories as follows: (1)
"Well capitalized" - consisting of institutions with a total risk-based
capital ratio of 10% or greater, a Tier 1 risk-based capital ratio of 6%
or greater and a leverage ratio of 5% or greater, and the institution is
not subject to an order, written agreement, capital directive or prompt
<PAGE> 14
corrective action directive; (2) "Adequately capitalized" - consisting
of institutions with a total risk-based capital ratio of 8% or greater,
a Tier 1 risk-based capital ratio of 4% or greater and a leverage ratio
of 4% or greater, and the institution does not meet the definition of a
"well capitalized" institution; (3) "Undercapitalized" - consisting of
institutions with a total risk-based capital ratio less than 8%, a Tier
1 risk-based capital ratio of less than 4%, or a leverage ratio of less
than 4%; (4) "Significantly undercapitalized" - consisting of
institutions with a total risk-based capital ratio of less than 6%, a
Tier 1 risk-based capital ratio of less than 3%, or a leverage ratio of
less than 3%; (5) "Critically undercapitalized" - consisting of an
institution with a ratio of tangible equity to total assets that is
equal to or less than 2%.
Financial institutions classified as undercapitalized or below are
subject to various limitations including, among other matters, certain
supervisory actions by bank regulatory authorities and restrictions
related to (i) growth of assets, (ii) payment of interest on
subordinated indebtedness, (iii) payment of dividends or other capital
distributions, and (iv) payment of management fees to a parent holding
company. The FDICIA requires the bank regulatory authorities to
initiate corrective action regarding financial institutions which fail
to meet minimum capital requirements. Such action may result in orders
to, among other matters, augment capital and reduce total assets.
Critically undercapitalized financial institutions may also be subject
to appointment of a receiver or implementation of a capitalization plan.
The effect of the FDICIA upon capital adequacy of the Company cannot be
determined until final regulations are adopted to implement the
provisions of the FDICIA.
<PAGE> 15
PART II - OTHER INFORMATION
Item 6. Exhibits and reports on Form 8-K
(a) None
(b) Reports on Form 8-K
On February 2, 1995, Registrant filed a Current Report
on Form 8-K, dated January 27, 1995, reporting under
Item 5 (Other Events) declaration of a five cent ($0.05)
cash dividend on the outstanding shares of common stock
of Saratoga Bancorp to be payable March 31, 1995 to
shareholders of record at the close of business February
14, 1995.
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.
SARATOGA BANCORP
Date: May 8, 1995 Richard L. Mount
--------------------------
Richard L. Mount, President
(Principal Executive Officer)
Date: May 8, 1995 Mary Page Rourke
--------------------------
Mary Page Rourke, Treasurer
(Principal Financial and
Accounting Officer)
<TABLE> <S> <C>
<ARTICLE> 9
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> MAR-31-1995
<CASH> 2977
<INT-BEARING-DEPOSITS> 0
<FED-FUNDS-SOLD> 3000
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 15094
<INVESTMENTS-CARRYING> 24189
<INVESTMENTS-MARKET> 23003
<LOANS> 33627
<ALLOWANCE> 788
<TOTAL-ASSETS> 84627
<DEPOSITS> 69605
<SHORT-TERM> 0
<LIABILITIES-OTHER> 7944
<LONG-TERM> 4270
<COMMON> 4427
0
0
<OTHER-SE> 5531
<TOTAL-LIABILITIES-AND-EQUITY> 84627
<INTEREST-LOAN> 907
<INTEREST-INVEST> 631
<INTEREST-OTHER> 33
<INTEREST-TOTAL> 1571
<INTEREST-DEPOSIT> 574
<INTEREST-EXPENSE> 629
<INTEREST-INCOME-NET> 942
<LOAN-LOSSES> 0
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 720
<INCOME-PRETAX> 323
<INCOME-PRE-EXTRAORDINARY> 323
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 194
<EPS-PRIMARY> .184
<EPS-DILUTED> .183
<YIELD-ACTUAL> 5.02
<LOANS-NON> 0
<LOANS-PAST> 0
<LOANS-TROUBLED> 212
<LOANS-PROBLEM> 807
<ALLOWANCE-OPEN> 738
<CHARGE-OFFS> 5
<RECOVERIES> 55
<ALLOWANCE-CLOSE> 788
<ALLOWANCE-DOMESTIC> 129
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 659
</TABLE>
