FORM 10-Q/A
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
Quarterly Report Under Section 13 or 15(d)
of the Securities Exchange Act of 1934
For Quarter Ended MARCH 31, 1995
Amended Report
Commission file number 2-79261
DELTA NATIONAL BANCORP
(Exact name of registrant as specified in its charter)
California 94-2839814
(State or other jurisdiction (IRS Employer Identification No.)
of incorporation or organization)
611 North Main Street, Manteca, California 95336-3740
(Address of principal executive offices) (Zip code)
(209) 824-4050
(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 [ ]
APPLICABLE ONLY TO CORPORATE ISSUERS
Indicate the number of shares outstanding of each of the issuer's classes of
common stock as of March 31, 1995:
Common Stock, no par value - 376,782 shares.
<PAGE>
DELTA NATIONAL BANCORP
INDEX
PART I. FINANCIAL INFORMATION
Page no.
Item 1. Financial Statements
Consolidated Balance Sheets -
December 31, 1994 and March 31, 1995 3
Consolidated Statements of Income -
Three months ended March 31, 1995 and 1994 4
Consolidated Statements of Cash Flows -
Three months ended March 31, 1995 and 1994 5
Notes to Consolidated Financial Statements 7
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 12
PART II. OTHER INFORMATION
Signatures 16
2
<PAGE>
PART 1 - FINANCIAL INFORMATION
Item 1 - Financial Statements
<TABLE>
DELTA NATIONAL BANCORP
CONSOLIDATED BALANCE SHEETS
( In Thousands)
Unaudited
<CAPTION>
March 31, Dec 31,
1995 1994
--------- ---------
<S> <C> <C>
ASSETS
Cash and due from banks ................................................ $ 4,395 $ 3,349
Federal funds sold ..................................................... 4,900 2,800
-------- --------
Total cash and cash equivalents ................. 9,295 6,149
Interest bearing deposits in banks ..................................... 0 0
Investment Securities: note (3)
Securities available for sale ................. 20,751 21,231
Securities held to maturity ................. 11,845 11,797
-------- --------
32,596 33,028
Loans, net: note (4)(5)(6)(8) ......................................... 45,790 47,044
Property and equipment ................................................. 857 902
Interest receivable, other assets and other real estate owned: note (9) 1,857 2,066
-------- --------
TOTAL ASSETS ........................................................... $ 90,395 $ 89,189
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Non-interest bearing ......................................... 12,900 13,215
Interest bearing ............................................. 67,916 67,006
-------- --------
Total deposits ..................................... 80,816 80,221
Accrued interest/other liabilities ..................................... 345 221
Stockholders' equity:
Common stock, no par value
Authorized - 5,000,000 shares
Issued and outstanding - 376,782 shares ........................... 3,532 3,532
Retained earnings ...................................................... 5,806 5,598
Net unrealized appreciation (depreciation) on
securities available-for-sale, net of tax of $74,100
and $74,069 at March 31, 1995 and 1994, respectively ................... (104) (383)
-------- --------
Total stockholders' equity ............................................. 9,234 8,747
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY ............................. $ 90,395 $ 89,189
======== ========
</TABLE>
The accompanying notes are an integral part of this statement.
3
<PAGE>
PART 1 - FINANCIAL INFORMATION
Item 1 - Financial Statements
<TABLE>
DELTA NATIONAL BANCORP
CONSOLIDATED STATEMENTS OF INCOME
( In Thousands)
EXCEPT PER SHARE DATA
Unaudited
<CAPTION>
3 MONTHS ENDED MARCH 31,
------------------------
1995 1994
---- ----
<S> <C> <C>
Interest income:
Interest and fees on loans .................. $ 1,381 $ 1,075
Interest on investment securities:
Securities available-for-sale .......... 291
Securities held-to-maturity ............ 132
Investment securities .................. 347
Interest-bearing deposits in banks ..... 0 0
Federal funds sold ..................... 49 47
-------- --------
Total interest income ............. 1,853 1,469
Interest expense on deposits ..................... 677 537
-------- --------
Net interest income ............... 1,176 932
Provision for loan loss .......................... 100 255
-------- --------
Net interest income after provision
for possible loan losses .......... 1,076 677
Other income
Service charges on deposits ................. 116 151
Other income ................................ 70 47
-------- --------
186 198
-------- --------
Other expenses
Salaries, wages and employee benefits ....... 467 424
Occupancy and equipment ..................... 155 140
Other operating expenses .................... 306 483
-------- --------
928 1,047
-------- --------
Earning before income taxes ....... 334 (172)
Income taxes ..................................... 125 0
-------- --------
NET EARNINGS ...................... $ 209 $ (172)
======== ========
Net earnings per share: .......................... $ .55 $ (.46)
======== ========
</TABLE>
The accompanying notes are an integral part of this statement
4
<PAGE>
PART 1 - FINANCIAL INFORMATION
Item 1 - Financial Statements
<TABLE>
DELTA NATIONAL BANCORP
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Thousands)
Unaudited
<CAPTION>
3 MONTHS ENDED MARCH 31,
------------------------
1995 1994
---- ----
<S> <C> <C>
Increase (decrease) in cash and cash equivalents
Cash flows from operating activities:
Net earnings .................................................... $ 209 $ (172)
Adjustments to reconcile net earnings
to net cash provided by operating activities
(Gain)/Loss on sale of assets ............................... 12 3
(Gain)/Loss on sale of OREO ................................. (122) 0
Provision for possible loan losses .......................... 100 255
Provision for OREO .......................................... 34 250
Provision for depreciation and amortization ................. 143 74
Decrease (increase) in interest receivable and other assets . (330) 32
Increase (decrease) in interest payable and other liabilities 89 14
-------- --------
Net cash provided by operating activities ............... 135 456
-------- --------
Cash flows from investing activities:
Proceeds from maturities of securities available-for-sale ....... 997
Proceeds from maturities of securities held-to-maturity ......... 1,208
Proceeds from sales & maturities of securities .................. 2,897
Purchase of securities available-for-sale ....................... 0
Purchase of securities held-to-maturity ......................... (1,377)
Purchase of securities .......................................... (1,566)
Net (increase) decrease in loans ................................ 1,153 (843)
Purchase of property and equipment .............................. (29) (44)
Purchase/additions to OREO ...................................... (34) 0
Proceeds from sale of property and equipment .................... 0 27
Proceeds from sale of OREO ...................................... 497 0
-------- --------
Net cash (used in) provided by investing activities ........ 2,415 471
-------- --------
</TABLE>
The accompanying notes are an integral part of this statement.
<PAGE>
PART 1 - FINANCIAL INFORMATION
Item 1 - Financial Statements
<TABLE>
DELTA NATIONAL BANCORP
CONSOLIDATED STATEMENTS OF CASH FLOWS - CONTINUED
(In Thousands)
Unaudited
<CAPTION>
3 MONTHS ENDED MARCH 31,
------------------------
1995 1994
---- ----
<S> <C> <C>
Cash flows from financing activities:
Net increase (decrease) in demand deposits,
money market accounts and savings accounts ...... 2,476 (1,061)
Net (decrease) increase in time deposits .......... (1,880) 594
Cash dividends .................................... 0 0
-------- --------
Net cash provided by financing activities .... 596 (467)
-------- --------
Net increase (decrease) in cash and cash equivalents ... 3,146 460
Cash and cash equivalents at beginning of period ....... 6,149 10,281
-------- --------
Cash and cash equivalents at end of period ............. $ 9,295 $ 10,741
======== ========
Supplemental disclosures of cash flow information:
Cash paid during the period for:
Interest ........................................ 482 344
Income Taxes .................................... 234 0
</TABLE>
Noncash investing and financing activities:
The Bank recognized an increase of $475,291 in the fair value of its
available-for-sale securities in the first three months of 1995 and a decline of
$698,841 in the fair value of its available-for-sale securities for the year
ended December 31, 1994.
The accompanying notes are an integral part of this statement.
<PAGE>
PART 1 - FINANCIAL INFORMATION
Item 1 - Financial Statements
DELTA NATIONAL BANCORP
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 1995
1. Basis
Delta National Bancorp (the Company) was incorporated under the laws of
the State of California on December 21, 1981 for the purpose of serving as a
bank holding company under the Bank Holding Company Act of 1956. The Company's
wholly-owned subsidiary, Delta National Bank (the Bank), operates as a
commercial bank in the cities of Manteca, Riverbank, Denair and Modesto,
California. Headquarters are located at the Manteca Branch at 611 North Main
Street, Manteca, California.
2. Summary of Accounting Policies
The accounting and reporting policies of the Company and the Bank conform
with generally accepted accounting principles and general practice within the
banking industry. The consolidated financial statements of the Company include
the accounts of the Company and the Bank. Significant intercompany transactions
and amounts have been eliminated.
3. Investment Securities
Prior to December 31, 1993, securities were stated at cost adjusted for
amortization of premiums and accretion of discounts, which were recognized as
adjustments to interest income. Gains or losses on disposition were based on the
net proceeds and the adjusted carrying amount of the securities sold, using the
specific identification method. Securities were considered held for investment
purposes since the Bank had the ability and intention to hold such securities to
maturity.
In May 1993, the Financial Accounting Standards Board issued Statement
No. 115, "Accounting for Certain Investments in Debt and Equity Securities". A
significant provision of this statement is the change in accounting and
reporting for certain investments in debt securities and equity securities.
These securities are classified into one of three categories: held-to-maturity,
available-for-sale, or trading. Held-to-maturity securities will continue to be
measured at amortized cost and available-for-sale and trading securities are
measured at fair value. Unrealized holding gains and losses for
available-for-sale securities are excluded from earnings and reported as a net
amount in a separate component of stockholders' equity until realized. The Bank
adopted and implemented SFAS No. 115 as of December 31, 1993.
<PAGE>
DELTA NATIONAL BANCORP
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 1995
3. Investment Securities (continued)
Carrying values and estimated fair values of investment securities for
March 31, 1995 and December 31, 1994 are summarized as follows:
<TABLE>
<CAPTION>
March 31, 1995 December 31, 1994
Amortized Gross Estimated Amortized Gross Estimated
Cost Unrealized Fair Cost Unrealized Fair
Gains Value Gains Value
(Losses) (Losses)
<S> <C> <C> <C> <C> <C> <C>
Available-for-Sale Securities:
U.S. Treasury Securities ......... $ 1,998 $ (25) $ 1,973 $ 1,996 $ (49) $ 1,947
Obligations of other U.S.
government agencies .............. 15,885 (250) 15,635 16,188 (654) 15,534
Obligations of state and
political subdivisions ........... 1,578 110 1,688 2,281 78 2,359
Corporate bonds and Other ........ 1,468 (13) 1,455 1,420 (29) 1,391
-------- -------- -------- -------- -------- --------
TOTAL $ 20,929 $ (178) $ 20,751 $ 21,885 $ (654) $ 21,231
======== ======== ======== ======== ======== ========
Held-to-Maturity Securities:
U.S. Treasury Securities ......... $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
Obligations of other U.S.
government agencies .............. 8,403 3 8,406 7,696 (39) 7,657
Obligations of state and
political subdivisions ........... 1,327 (19) 1,308 1,328 (31) 1,297
Corporate bonds and Other ........ 2,115 (43) 2,072 2,773 (72) 2,701
-------- -------- -------- -------- -------- --------
TOTAL $ 11,845 $ (59) $ 11,786 $ 11,797 $ (142) $ 11,655
======== ======== ======== ======== ======== ========
</TABLE>
<PAGE>
DELTA NATIONAL BANCORP
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 1995
4. The following table discloses separately (1) total loans (2) the allowance
for losses and (3) unearned income:
March, 1995 December, 1994
----------- --------------
Total Loans ............................ $ 46,955,792 $ 48,055,894
Allowance for Loan Loss ................ (704,156) (599,422)
Unearned Discount ...................... (134,754) (167,027)
Deferred Profit on OREO Sales .......... (95,782) 0
Deferred Loan Fees ..................... (230,665) (245,844)
------------- -------------
Loans, net ............................. $ 45,790,435 $ 47,043,601
============= =============
5. The following table discloses the amount of total loans in each of the
following categories for the periods indicated:
March, 1995 December, 1994
----------- --------------
Commercial Loans ....................... $ 20,463,548 $ 20,991,617
Real Estate Construction ............... 7,847,456 7,352,440
Real Estate Mortgage ................... 15,870,158 16,610,145
Installment ............................ 2,774,630 3,101,692
------------ ------------
Total Loans ............................ $ 46,955,792 $ 48,055,894
============ ============
<PAGE>
DELTA NATIONAL BANCORP
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 1995
6. Impaired Loans:
In May, 1993, the Financial Accounting Standards Board (FASB) issued
Statement No. 114, Accounting by Creditors for Impairment of a Loan (SFAS 114)
which addresses the accounting treatment of certain impaired loans and amends
FASB statements No. 5 and No. 15. SFAS does not address the overall adequacy of
the allowance possible for loan losses. The Bank adopted and implemented SFAS
No. 114 as of January 1, 1995.
A loan is considered impaired when, based on 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. Under SFAS 114,
impairment is measured based on the present value of the expected future cash
flows discounted at the loans effective interest rate. Alternatively, impairment
may be measured by using the loans observable market price or the fair value of
the collateral if repayment is expected to be provided solely by the underlying
collateral. The recorded investment in these loans and the valuation allowance
for credit losses related to loan impairment are as follows:
3 Month End
March, 1995
-----------
Principal amount of impaired loans ........... $257,976
Accrued Interest ............................. 2,375
Deferred loan costs .......................... 0
--------
260,351
Less valuation allowance ..................... 0
--------
Total carrying value ......................... $260,351
========
The fair value of collateral exceeded the total carrying value,
therefore, there was no activity to the valuation allowance in the first quarter
of 1995.
7. As of March 31, 1995 there were no material loans outstanding made by the
Company to the directors, executive officers, or any principal holders of equity
securities.
<PAGE>
DELTA NATIONAL BANCORP
NOTES TO FINANCIAL STATEMENTS
March 31, 1995
8. Changes in the allowance for loan losses are as follows:
3 Month End 3 Month End
March, 1995 March, 1994
----------- -----------
Beginning balance .................... $ 599,000 $ 807,000
Charge Offs .......................... (37,000) (223,000)
Recoveries ........................... 42,000 31,000
Allowance ............................ 100,000 255,000
--------- ---------
Ending balance ....................... $ 704,000 $ 870,000
========= =========
9. Real Estate properties acquired through foreclosure are initially
recorded at fair value at the date of foreclosure establishing a new cost basis.
After foreclosure, valuations are periodically performed and the real estate is
carried at the lower of (1) cost or (2) fair market value minus estimated costs
to sell. Changes in the valuation allowance for OREO are as follows:
3 Month End 3 Month End
March, 1995 March, 1994
----------- -----------
Beginning balance ........................... $ 257,643.71 $ 0
Provision Charged to Operations ............. 34,193.00 250,000.00
Recoveries .................................. 0 0
------------ ------------
Ending balance .............................. $ 291,836.71 $ 250,000.00
============ ============
<PAGE>
PART 1 - FINANCIAL INFORMATION
Item II - Financial Condition and Results of Operations
DELTA NATIONAL BANCORP
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
MARCH 31, 1995
Results of Operations
The management and the directors of the Company reported net earnings for
the three month period ending March 31, 1995 at $209,000 compared to net
earnings of ($172,000) for the same period in 1994. The net operating loss in
1994 was primarily related to additional provisions that were made to the
allowance for loan loss reserve and for one OREO property. Management is pleased
with the earnings for the first quarter of 1995.
Consolidated assets increased to $90,395,000 as of March 31, 1995 which
represents a growth rate of 6.59% compared to March, 1994 when assets totaled
$84,808,000. Deposits continue to grow at $80,816,000 for the first three months
of 1995 compared to $76,361,000 for the first three months of 1994. This
represents a 5.83% increase. Capital remains very strong at $9,234,000 in 1995
and $8,296,000 in 1994.
Net interest income, the largest component of the Company's earnings, represents
the difference between interest earned on loans and other assets and interest
paid on deposits. Net interest income increased 26.18% to $1,176,000 in March,
1995 compared to $932,000 in March, 1994.
Management is quite satisfied with these results considering the local economy
has shown no material improvement over the past year. The increase in income is
a result of sound lending and investing practices, cost control methods and
prudent management decisions.
The most important factors affecting operating results were the increasing
interest rate environment and absence of problem loans. Management had
anticipated the rise in interest rates and elected to emphasize loans that
reprice immediately when interest rates rise. Funding sources were readily
available to accommodate demand without having to resort to high cost funds.
This enabled the Bank to remain within it's niche and not venture into untested
areas.
<PAGE>
Liquidity Management
Liquidity refers to the Company's ability to maintain a cash flow adequate to
fund operations and meet obligations on other commitments on a timely and cost
effective basis. The Bank insures the maintenance of a reasonable amount of
liquid funds in order to meet periodic increases in loan demand and deposit
maturities. Investments are made in short term sources including deposits in
correspondent banks, fed funds sold, marketable securities as well as cash on
hand. The Bank's liquidity average ratio for March 1995 was 32.98% which
management feels is more than adequate. Liquidity is enhanced by operating
profits and increasing deposits. In recent years, core deposits have provided
the Company with a sizable source of relatively stable and low-cost funds.
Asset/Liability Management
The principal objectives of asset/liability management is maintaining an
appropriate balance between interest sensitive assets and interest sensitive
liabilities along with reducing interest rate exposure while providing
liquidity.
Interest-earning assets and interest-bearing liabilities are those which have
yields or rates which are subject to change due to maturity of the instrument or
changes in the rate environment. Gap refers to the difference between the rate
sensitive assets and rate sensitive liabilities. When the amount of rate
sensitive assets exceeds rate sensitive liabilities, a "positive" gap exists and
when the amount of rate sensitive liabilities exceed the amount of rate
sensitive assets, a "negative" gap exists. Major fluctuations in net interest
income and net earnings could occur due to imbalances between rate sensitive
assets and liabilities. Asset/Liability management attempts to protect earnings
by maintaining the proper balance between interest-earning assets and
interest-bearing liabilities in order to minimize fluctuations in the net
interest margin and net earnings in periods of volatile interest rates.
The following table summarizes the interest rate sensitivity of the Company's
assets and liabilities at March 31, 1995. Assets and liabilities are categorized
where applicable, by remaining interest rate maturities rather than contractual
maturities of obligations. For example, investment securities with variable
rates are monitored and reported in the category that represents the frequency
of the rate change.
<PAGE>
<TABLE>
Interest Rate Sensitivity Analysis
<CAPTION>
0 - 30 31 - 90 91 - 180 181 - 365 1 - 5 Over 5
Days Days Days Days Years Years Total
<S> <C> <C> <C> <C> <C> <C> <C>
Interest-bearing bank balances . 4,900 0 0 0 0 0 4,900
Investment Securities .......... 25 16,093 10,229 3,828 2,121 422 32,718
Loans .......................... 32,101 270 1,361 3,746 8,086 919 46,483
------- ------- ------- ------- ------- ------- -------
Total Rate Sensitive Assets .... 37,026 16,363 11,590 7,574 10,207 1,341 84,101
Interest Bearing Demand Deposits 14,638 0 0 0 0 0 14,638
Time Certificates of Deposits .. 6,285 8,398 3,350 5,804 8,360 0 32,197
Savings Passbook Certificates of
Deposit and Regular Savings .... 9,613 9,742 0 0 0 0 19,355
------- ------- ------- ------- ------- ------- -------
Total Rate Sensitive Liabilities 30,536 18,140 3,350 5,804 8,360 0 66,190
Interval Gaps/RSA-RSL .......... 6,490 (1,777) 8,240 1,770 1,847 1,341 17,911
</TABLE>
Capital Resources
Capital plays a fundamental and vital role in the operation of the Bank. Capital
adequacy is important to the Bank functions to insure continued financial
strength, protect against unanticipated losses, build confidence in depositors
and shareholders, and enables the Bank to acquire the physical necessities
necessary to render proper Bank services.
The Company is subject to the capital adequacy requirements of various federal
banking agencies, such as the Office of Comptroller of the Currency and the
Federal Deposit Insurance Corporation. At March 31, 1995 the Company exceeded
its capital requirements and expects to remain in compliance with capital
requirements in the future.
Minimum March 1995 December 1994
Risk Based Capital Ratio ........... 8.00% 16.64% 15.47%
Tier I Ratio ....................... 4.00% 15.44% 14.49%
Leverage Ratio ..................... 3.00% 10.20% 9.92%
The Company's total risk-based capital ratio increased to 16.64% compared to
14.00% for March 31, 1994. A review of the Banks risk-based capital level shows
that levels again were substantially higher than regulatory requirements. The
Bank's capital requirement policy shall, at all times, meet or exceed the
requirements set forth by regulatory agencies. In the event that the minimum
regulatory capital requirement is not met through retained earnings and
restricted growth, the Bank shall consider other forms of raising capital. It is
a priority of this institution to continue to meet and exceed all regulatory
capital compliance levels.
<PAGE>
Accounting Changes
The Financial Accounting Standards Board has issued a new standard for
accounting and reporting of certain investments in debt securities and equity
securities. The Bank adopted and implemented SFAS No. 115 as of December 31,
1993.
The Financial Accounting Standards Board has issued a new standard which
addresses the accounting treatment of certain impaired loans. The Bank adopted
and implemented SFAS No. 114 as of January 1, 1995.
PART II - OTHER INFORMATION
Item 1 - Legal Proceedings - None other than in the ordinary course of
business.
Item 2 - Change in securities - None
Item 3 - Defaults Upon Senior Securities - None
Item 4 - Submission of Matters to a Vote of Security Holders - None
Item 5 - Other Information - No Change in Executive Officers.
Item 6 - Exhibits and 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.
DELTA NATIONAL BANCORP
(Registrant)
DATE: July 21, 1995 /s/ Andrew Rossi
--------------------------------
Andrew Rossi
President/Chief Executive Officer
Director
(Principal Executive Officer)
DATE: July 21, 1995 /s/ Warren E. Wegge
--------------------------------
Warren E. Wegge
Executive Vice President
(Principal Financial Officer)
DATE: July 21, 1995 /s/ Toinette Rossi
--------------------------------
Toinette Rossi
Vice President and Manager
Director
<TABLE> <S> <C>
<ARTICLE> 9
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-01-1995
<PERIOD-END> MAR-31-1995
<CASH> 4395
<INT-BEARING-DEPOSITS> 0
<FED-FUNDS-SOLD> 4900
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 20751
<INVESTMENTS-CARRYING> 11845
<INVESTMENTS-MARKET> 11785
<LOANS> 46956
<ALLOWANCE> 704
<TOTAL-ASSETS> 90395
<DEPOSITS> 80816
<SHORT-TERM> 0
<LIABILITIES-OTHER> 345
<LONG-TERM> 0
<COMMON> 3532
0
0
<OTHER-SE> 5702
<TOTAL-LIABILITIES-AND-EQUITY> 90395
<INTEREST-LOAN> 1381
<INTEREST-INVEST> 423
<INTEREST-OTHER> 49
<INTEREST-TOTAL> 1853
<INTEREST-DEPOSIT> 677
<INTEREST-EXPENSE> 677
<INTEREST-INCOME-NET> 1176
<LOAN-LOSSES> 100
<INCOME-PRE-EXTRAORDINARY> 0
<INCOME-PRETAX> 334
<EXTRAORDINARY> 0
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 928
<CHANGES> 0
<NET-INCOME> 209
<EPS-PRIMARY> 0.55
<EPS-DILUTED> 0.55
<YIELD-ACTUAL> 8.45
<LOANS-NON> 258
<LOANS-PAST> 0
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 3269
<ALLOWANCE-OPEN> 599
<CHARGE-OFFS> 37
<RECOVERIES> 42
<ALLOWANCE-CLOSE> 704
<ALLOWANCE-DOMESTIC> 704
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
