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, 1996 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 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
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 30, 1996
Common Stock 1,030,972
Page 1 of 17 pages
<PAGE>
PART I - FINANCIAL INFORMATION
Item 1. Consolidated Condensed Financial Statements
<TABLE>
<CAPTION>
SARATOGA BANCORP AND SUBSIDIARY
CONSOLIDATED CONDENSED BALANCE SHEETS
<S> <C> <C>
March 31, December 31,
1996 1995*
(Unaudited)
ASSETS
Cash and due from banks $ 4,788,000 $ 5,239,000
Federal funds sold 10,200,000 17,700,000
Total cash and equivalents 14,988,000 22,939,000
Interest-bearing deposits in
other banks 200,000 200,000
Securities available for sale 23,498,000 15,286,000
Securities held to maturity 23,800,000 20,348,000
Loans, net 35,508,000 36,759,000
Other real estate owned 1,764,000 1,745,000
Premises and equipment 2,239,000 1,988,000
Other assets 1,399,000 1,232,000
TOTAL ASSETS $103,396,000 $100,497,000
=========== ===========
LIABILITIES
Deposits:
Non interest-bearing $ 21,615,000 $ 20,410,000
Interest-bearing 56,749,000 54,539,000
Total deposits 78,364,000 74,949,000
Federal funds purchased - 1,500,000
Other borrowings 13,061,000 12,087,000
Accrued expenses and
other liabilities 858,000 904,000
TOTAL LIABILITIES 92,283,000 89,440,000
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 6,922,000 6,797,000
Unrealized loss on investments
available for sale (236,000) (167,000)
SHAREHOLDERS' EQUITY 11,113,000 11,057,000
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $103,396,000 $100,497,000
=========== ===========
</TABLE>
*Derived from the December 31, 1995 audited balance sheet included
in the Company's 1995 Annual Report on Form 10-K.
See notes to consolidated condensed financial statements.
<PAGE>
<TABLE>
<CAPTION>
SARATOGA BANCORP AND SUBSIDIARY
CONSOLIDATED CONDENSED INCOME STATEMENTS (unaudited)
<S> <C> <C>
Three Months Ended
March 31,
1996 1995
------------ ------------
INTEREST INCOME:
Loans $ 983,000 $ 907,000
Investment securities 603,000 631,000
Federal funds sold 155,000 33,000
----------- -----------
Total interest income 1,741,000 1,571,000
----------- -----------
INTEREST EXPENSE:
Deposits 618,000 574,000
Other 196,000 55,000
----------- -----------
Total interest expense 814,000 629,000
----------- -----------
NET INTEREST INCOME BEFORE
CREDIT LOSSES 927,000 942,000
Credit for credit losses (50,000) -
----------- -----------
Net interest income after
credit for credit losses 977,000 942,000
Other income 70,000 101,000
Other expenses 722,000 720,000
----------- -----------
INCOME BEFORE INCOME TAXES 325,000 323,000
Provision for income taxes 123,000 129,000
----------- -----------
NET INCOME $ 202,000 $ 194,000
=========== ===========
NET INCOME PER COMMON AND
EQUIVALENT SHARE $0.18 $0.18
=========== ===========
</TABLE>
See notes to consolidated condensed financial statements.
<PAGE>
<TABLE>
<CAPTION>
SARATOGA BANCORP AND SUBSIDIARY
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (Unaudited)
<S> <C> <C>
Three Months Ended
March 31,
1996 1995
OPERATIONS:
Net income $ 202,000 $ 194,000
Adjustments to reconcile net
income to net cash provided
by (used in)operating
activities:
Credit for credit losses (50,000) -
Depreciation and amortization 42,000 69,000
Other, net (234,000) (50,000)
Net cash provided by (used in)
operating activities (40,000) 213,000
INVESTING ACTIVITIES:
Proceeds from maturities of
investments held to maturity 533,000 147,000
Purchase of securities available
for sale (8,321,000)
Purchase of securities held to
maturity (3,986,000) (373,000)
Net increase (decrease) in loans 1,340,000 (752,000)
Purchases of premises and equipment (293,000) (25,000)
Net cash used in investing
activities (10,727,000) (1,003,000)
FINANCING ACTIVITIES:
Net (decrease) increase in deposits 3,415,000 (4,267,000)
Payment of dividends (77,000) -
Net increase in other borrowings 974,000 2,270,000
Decrease in federal funds purchased (1,500,000) (1,500,000)
Net cash provided by (used in) financing
activities 2,812,000 (3,497,000)
NET DECREASE IN CASH
AND EQUIVALENTS (7,951,000) (4,287,000)
Cash and equivalents
beginning of period 22,939,000 10,264,000
Cash and equivalents end of period $14,988,000 $ 5,977,000
=========== ===========
</TABLE>
See notes to consolidated condensed financial statements.
<PAGE>
SARATOGA BANCORP AND SUBSIDIARY
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
QUARTERS ENDED MARCH 31, 1996 AND 1995
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 options. The number of shares used to compute income
per share was 1,089,378 shares for the three month period ended
March 31, 1996 (1,058,588 shares for the comparable period in
1995).
3. For the three months ended March 31, 1996, cash paid for taxes
was $209,000. There was no cash paid for taxes for the three
months ended March 31, 1995. For the three months ended March 31,
1996 and 1995, cash paid for interest was $606,000 and $564,000,
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 January 1, 1995, the Company adopted SFAS 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 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. Applying the
provisions of these statements did not have a material effect on
the Company's financial position or results of operations.
<PAGE>
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, 1996, total assets were $103,396,000, an increase of
$2,899,000 (2.9%) from $100,497,000 at December 31, 1995. Net
loans decreased $1,251,000 (3.4%) from $36,759,000 at December 31,
1995 to $35,508,000 at March 31, 1996. Total deposits increased
$3,415,000 (4.5%) from $74,949,000 at year-end 1995 to $78,364,000
at March 31, 1996.
Net income for the first quarter of 1996 was $202,000 or $.18 per
share compared to $194,000 ($.18 per share) for the comparable
period in 1995.
The increase in income resulted primarily from an increase in the
volume of earning assets, offset in part, by a decrease in the
yield of earning assets and an increase in interest expense due to
the increased volume of interest-bearing liabilities.
RESULTS OF OPERATIONS
FIRST QUARTER OF 1996 AND 1995
An analysis of the results of operations of the Company for the
first quarter of 1996 compared to the first quarter of 1995 is
presented below:
<PAGE>
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,
1996 1995
Average Average Average Average
Balance Interest Yield(1) Balance Interest Yield(1)
(In thousands, except percentages)
<S> <C> <C> <C> <C> <C> <C>
Assets:
Earning assets:
Loans (2) $37,547 $ 983 10.5% $32,627 $ 907 11.1%
Securities 37,961 603 6.4% 38,768 631 6.5%
Federal funds sold 11,880 155 5.2% 2,359 33 5.6%
Total interest
earning assets 87,388 1,741 8.0% 73,754 1,571 8.5%
Cash and due from
banks 3,937 3,985
Other assets (3) 4,204 5,305
$95,529 $83,044
======= =======
Liabilities and
Shareholders'
Equity:
Interest-bearing
liabilities:
Demand deposits $24,163 202 3.3% $24,902 134 2.2%
Time deposits 31,051 416 5.4% 30,256 440 5.8%
Other borrowings 12,095 196 6.5% 2,362 55 9.3%
Total interest-
bearing
liabilities 67,309 814 4.8% 57,520 629 4.4%
Demand deposits 16,237 14,910
Other liabilities 877 767
Total liabilities 84,423 73,197
Shareholders' equity 11,106 9,847
$95,529 $83,044
======= =======
Net interest income and margin $927 4.2% $942 5.1%
====== ======
</TABLE>
(1) Annualized.
(2) Loan interest income includes loan fee income of $77,000 and
$81,000 for the quarters ended March 31, 1996 and 1995,
respectively.
(3) Other assets include the average allowance for credit losses
of $761,000 and $762,000 and deferred loan fees of $295,000
and $221,000 for the quarters ended March 31, 1996 and 1995,
respectively.
<PAGE>
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 the
underlying collateral, loan performance and 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 1996 the Bank reversed $50,000 from the allowance
for credit losses due to the continued significant over reserve in
the allowance. During the first quarter of 1995 the Bank did not
record a provision for credit losses. There were $29,000 in loans
charged-off and $11,000 in recoveries in the first quarter of 1996,
as compared to $5,000 in loans charged-off and $55,000 in
recoveries in the first quarter of 1995.
At March 31, 1996, the allowance for credit losses was $708,000 or
2.0% of total loans, compared to $776,000 or 2.1% at December 31,
1995. There were no nonaccrual loans at March 31, 1996 or December
31, 1995.
At March 31, 1996 and December 31, 1995, 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, 1996 in the amount of
$195,000 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." At March
31, 1996, there were six potential problem loans having a combined
principal balance of $1,142,000 ($1,161,000 at December 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. All of the
six loans identified as potential problem loans are secured by real
estate and personal property.
OREO totalled $1,764,000 at March 31, 1996 ($1,745,000 at December
31, 1995). OREO consisted of a single family residence and a 12
lot subdivision 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.
<PAGE>
Nonperforming loans and other real estate owned are summarized
below:
March 31, 1996 December 31, 1995
Nonperforming loans:
Past due 90 days or more $ - $ -
Nonaccrual - -
Total - -
Other real estate owned 1,764,000 1,745,000
Total nonperforming loans and
other real estate owned $1,764,000 $1,745,000
========== ==========
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 Bank's loan portfolio, which includes approximately $22,000,000
in real estate loans representing approximately 62% of the
portfolio, could be adversely affected if California economic
conditions and the real estate market in the Bank's market area
were to weaken. The effect of such events, although uncertain at
this time, could 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 decreased from $101,000
in the first quarter of 1995 to $70,000 in the first quarter of
1996. This decrease is primarily attributable to a decrease in
income on assets acquired for lease.
Noninterest expense
- -------------------
Other expenses did not change significantly and were $720,000 in
the first quarter of 1995 and $722,000 in the first quarter of
1996. As a percentage of average earning assets, other expenses
for the first quarter, on an annualized basis, were 3.9% and 3.3%
in 1995 and 1996, respectively.
<PAGE>
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, 1996 liquid assets as a percentage
of deposits were 51% (48% at December 31, 1995). In addition to
cash and due from banks, liquid assets include interest bearing
time deposits with other banks, Federal funds sold and investment
securities available for sale. The Bank has $8.0 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, 1996, 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 liabilities
reprice faster than its assets in the short-term.
<PAGE>
DISTRIBUTION OF REPRICING OPPORTUNITIES
At March 31, 1996
(Dollars in thousands)
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
Federal
funds sold $10,200 - - - - $10,200
Interest-bearing
deposits in
other banks - - $ 200 - - 200
Municipal
securities - $165 - $ 2,612 $ 771 3,548
U.S. Treasury
and agency
securities 7,649 1,003 1,981 9,407 21,346 41,386
FRB/FHLB stock - - - - 2,364 2,364
Loans 20,693 $ 1,266 3,871 5,276 5,397 36,503
Total earning
assets $38,542 $ 2,434 $ 6,052 $17,295 $29,878 $94,201
Interest bearing
demand deposits $26,083 - - - - $26,083
Savings deposits 3,344 - - - - 3,344
Time certificates
of deposit of
$100,000 or more 4,123 $ 1,227 $ 2,024 $ 3,275 - 10,649
Other time deposit 2,542 2,829 6,198 5,104 - 16,673
Other borrowings 1,570 - - - $11,491 13,061
Total interest-
bearing
liabilities $37,662 $4,056 $ 8,222 $ 8,379 $11,491 $69,810
Interest rate
sensitivity gap 880 $(1,622) $(2,170) $ 8,916 $18,387 $24,391
======= ======= ======= ======= ======= =======
Cumulative interest
rate sensitivity
gap $ 880 $ (742) $(2,912) $ 6,004 $24,391
======= ======= ======= ======= =======
Interest rate
sensitivity gap
ratio 1.02% 0.60% 0.74% 2.06% 2.60%
Cumulative interest
rate sensitivity
gap ratio 1.02% 0.98% 0.94% 1.10% 1.35%
<PAGE>
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, 1996, the Company's total risk-based
capital ratio was approximately 22.4% (approximately 22.2% for the
Bank) compared to approximately 22.0% (approximately 21.7% for the Bank)
at December 31, 1995.
The BGFRS 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, 1996 and the
year ended December 31, 1995.
March 31, 1996 December 31, 1995
Leverage ratio 11.3% 11.7%
Tier 1 capital ratio 21.1% 20.8%
Total risk-based capital ratio 22.4% 22.0%
On December 19, 1991, the President signed the Federal Deposit Insurance
Corporation Improvement Act of 1991 ("FDICIA"). FDICIA, among other
matters, substantially revised banking regulations and established a
framework for determination of capital adequacy of financial
institutions. Under 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 corrective
action directive; (2) "Adequately capitalized" - consisting of
institutions with a total risk-based capital ratio of 8% or greater, a
<PAGE>
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. FDICIA requires 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.
<PAGE>
PART II - OTHER INFORMATION
Item 1. Legal Proceedings
Not applicable
Item 2. Changes in Securities
Not applicable
Item 3. Defaults upon Senior Securities
Not applicable
Item 4. Submission of Matters to a Vote of Security Holders
Not applicable
Item 5. Other Information
Not applicable
Item 6. Exhibits and Reports on Form 8-K
(a) (3) Exhibits
27.1 Financial Data Schedule
(b) Reports on Form 8-K
On February 7, 1996, Registrant filed a Current Report on Form
8-K, dated January 27, 1996, reporting under Item 5 (Other Events)
declaration of a seven and one half cent ($0.075) cash
dividend on the outstanding shares of common stock of Saratoga
Bancorp to be payable March 29, 1996 to shareholders of
record at the close of business February 23, 1996.
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
/Richard L. Mount/
Date: May 3, 1996 -------------------------
Richard L. Mount, President
(Principal Executive Officer)
<PAGE>
INDEX TO EXHIBITS
Sequentially
Numbered
Number Exhibits Page
27.1 Financial Data Schedule 17
<TABLE> <S> <C>
<ARTICLE> 9
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> MAR-31-1996
<CASH> 4788
<INT-BEARING-DEPOSITS> 200
<FED-FUNDS-SOLD> 10200
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 23498
<INVESTMENTS-CARRYING> 23800
<INVESTMENTS-MARKET> 23744
<LOANS> 35508
<ALLOWANCE> 708
<TOTAL-ASSETS> 103396
<DEPOSITS> 78364
<SHORT-TERM> 0
<LIABILITIES-OTHER> 858
<LONG-TERM> 13061
0
0
<COMMON> 4427
<OTHER-SE> 6686
<TOTAL-LIABILITIES-AND-EQUITY> 103396
<INTEREST-LOAN> 983
<INTEREST-INVEST> 603
<INTEREST-OTHER> 155
<INTEREST-TOTAL> 1741
<INTEREST-DEPOSIT> 618
<INTEREST-EXPENSE> 196
<INTEREST-INCOME-NET> 927
<LOAN-LOSSES> (50)
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 722
<INCOME-PRETAX> 325
<INCOME-PRE-EXTRAORDINARY> 202
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 202
<EPS-PRIMARY> .18
<EPS-DILUTED> .18
<YIELD-ACTUAL> 8.0
<LOANS-NON> 0
<LOANS-PAST> 0
<LOANS-TROUBLED> 195
<LOANS-PROBLEM> 1142
<ALLOWANCE-OPEN> 708
<CHARGE-OFFS> 29
<RECOVERIES> 11
<ALLOWANCE-CLOSE> 0
<ALLOWANCE-DOMESTIC> 708
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 440
</TABLE>
