FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 20549
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 1997
Commission File No. 0-20050
PRINCETON NATIONAL BANCORP, INC.
(Exact name of registrant as specified in its charter)
Delaware 36-32110283
(State or other jurisdiction (I.R.S. Employer Identification No.)
of incorporation or organization)
606 S. Main Street, Princeton, IL 61356
(Address of principal executive offices and Zip Code)
(815) 875-4444
(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
____ ____
As of August 12, 1997, the registrant had outstanding
2,725,708 shares of its $5 par value common stock.
Page 1 of 15 pages
<PAGE> 2
Part I: FINANCIAL INFORMATION
The consolidated financial statements of Princeton National
Bancorp, Inc. and Subsidiary and management's discussion and analysis
of financial condition and results of operations are presented in the
schedules as follows:
Schedule 1: Consolidated Balance Sheets
Schedule 2: Consolidated Statements of Income
Schedule 3: Consolidated Statements of Stockholders' Equity
Schedule 4: Consolidated Statements of Cash Flows
Schedule 5: Note to Consolidated Financial Statements
Schedule 6: Management's Discussion and Analysis of
Financial Condition and Results of Operations
Part II: OTHER INFORMATION
Item 4. Submission of Matters to a Vote of Security Holders
The Annual Meeting of Shareholders of Princeton National
Bancorp, Inc. was held on April 8, 1997, for the purpose of electing
three directors each to serve for a term of three years and approving
an amendment to the Amended and Restated Certificate of Incorporation
of Princeton National Bancorp, Inc. to increase the number of authorized
shares of common stock from 4,000,000 to 7,000,000. Proxies for the
meeting were solicited by Management pursuant to Regulation 14A under
the Securities Exchange Act of 1934, and there was no solicitation in
opposition to Management's solicitation.
All three of Management's nominees for director listed in the
proxy statement were elected. The results of the vote were as
follows:
SHARES
VOTED SHARES BROKER
"FOR" "WITHHELD" NON-VOTES
------- ---------- ---------
John Ernat 1,984,287 6,250 0
Tony J. Sorcic 1,983,823 6,714 0
Thomas M. Longman 1,982,487 8,050 0
The results of the vote in the amendment to the Amended and
Restated Certificate of Incorporation were as follows (the amendment
was approved):
2
<PAGE> 3
BROKER
FOR AGAINST ABSTAIN NON-VOTES
--------- ------- ------- ---------
Amendment to 1,954,454 31,043 5,040 0
Amended and
Restated Certificate
of Incorporation
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits:
27 - Financial Data Schedule
(b) No reports on Form 8-K were filed during the quarter ended
June 30, 1997.
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.
PRINCETON NATIONAL BANCORP, INC.
Date: August 12, 1997 By /s/ Tony J. Sorcic
-----------------------------
Tony J. Sorcic
President & Chief Executive
Officer
Date: August 12, 1997 By /s/ Todd D. Fanning
-----------------------------
Todd D. Fanning
Chief Financial Officer
3
<PAGE> 4
<TABLE>
Schedule 1
PRINCETON NATIONAL BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
(in thousands)
<CAPTION>
June 30, 1997 December 31, 1996
------------- -----------------
(unaudited)
<S> <C> <C>
ASSETS
Cash and due from banks $22,078 $18,033
Federal funds sold 4,000 3,100
Loans held for sale 2,358 2,849
Investment securities:
Available-for-sale, at fair value 98,637 105,893
Held-to-maturity (fair value of $11,458 and $11,135
at June 30, 1997 and December 31, 1996, respectively) 11,401 11,135
-------- --------
Total investment securities 110,038 117,028
-------- --------
Loans:
Gross loans 269,181 258,118
Less: Unearned interest (159) (187)
Allowance for possible loan losses (1,778) (1,630)
-------- --------
Net loans 267,244 256,301
-------- --------
Premises and equipment 8,971 9,147
Interest receivable 4,950 5,725
Goodwill and intangible assets, net of accumulated
amortization 5,464 5,541
Other assets 3,302 2,683
-------- --------
TOTAL ASSETS $428,405 $420,407
======== ========
LIABILITIES
Deposits:
Demand $37,815 $41,258
Interest-bearing demand 84,977 78,883
Savings 55,541 55,077
Time 188,776 183,483
-------- --------
Total deposits 367,109 358,701
-------- --------
Short-term borrowings:
Customer repurchase agreements 7,396 11,597
Interest-bearing demand notes issued to the U.S. Treasury 2,888 1,940
F.H.L.B. Borrowings 750 0
-------- --------
Total short-term borrowings 11,034 13,537
-------- --------
Long-term borrowings 4,200 4,350
Other liabilities 4,197 3,622
-------- --------
TOTAL LIABILITIES 386,540 380,210
-------- --------
4
<PAGE> 5
STOCKHOLDERS' EQUITY
Common stock: $5 par value, 4,000,000 shares authorized;
2,759,945 issued at June 30, 1997 and December 31, 1996 13,800 13,800
Surplus 6,067 6,067
Retained earnings 21,879 20,250
Unrealized gain on investment securities
available-for-sale, net of tax effect 307 300
Less: Cost of 34,237 treasury shares at June 30, 1997 and
35,979 treasury shares at December 31, 1996 (188) (220)
-------- --------
TOTAL STOCKHOLDERS' EQUITY 41,865 40,197
-------- --------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $428,405 $420,407
======== ========
See accompanying note to consolidated financial statements
</TABLE>
5
<PAGE> 6
<TABLE>
Schedule 2
PRINCETON NATIONAL BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME
<CAPTION>
For the Three Months For the Six Months
Ended June 30 Ended June 30
-------------------- ------------------
1997 1996 1997 1996
-------- -------- -------- --------
<S> <C> <C> <C> <C>
INTEREST INCOME:
Interest and fees on loans 6,002 5,488 11,709 10,748
Interest and dividends on investment securities 1,647 1,656 3,281 3,377
Interest on federal funds sold 34 33 84 77
Interest on interest-bearing time deposits in
other banks 0 13 0 23
------ ------ ------ ------
Total interest income 7,683 7,190 15,074 14,225
INTEREST EXPENSE:
Interest on deposits 3,534 3,358 6,932 6,738
Interest on short-term borrowings 98 80 192 173
Interest on long-term borrowings 90 100 180 199
------ ------ ------ ------
Total interest expense 3,722 3,538 7,304 7,110
------ ------ ------ ------
NET INTEREST INCOME 3,961 3,652 7,770 7,115
Provision for possible loan losses 207 0 312 0
------ ------ ------ ------
Net interest income after provision
for possible loan losses 3,754 3,652 7,458 7,115
NON-INTEREST INCOME:
Trust & farm management fees 246 244 555 496
Service charges on deposit accounts 333 282 653 545
Other service charges 108 116 210 211
Securities transactions, net 71 (9) 68 (26)
Loan servicing fees and other charges 40 51 70 123
Other operating income 40 51 123 77
------ ------ ------ ------
Total non-interest income 838 735 1,679 1,426
NON-INTEREST EXPENSES:
Salaries and employee benefits 1,653 1,590 3,319 3,160
Occupancy 238 218 487 458
Equipment expense 230 207 455 411
FDIC/OCC assessments 45 63 54 123
Goodwill and intangible assets amortization 116 86 234 139
Data processing 165 144 332 279
Trust customer charges 7 240 17 243
Other operating expense 651 689 1,299 1,335
------ ------ ------ ------
Total non-interest expense 3,105 3,237 6,197 6,148
------ ------ ------ ------
INCOME BEFORE INCOME TAXES 1,487 1,150 2,940 2,393
Income tax expense 390 275 766 583
------ ------ ------ ------
NET INCOME 1,097 875 2,174 1,810
====== ====== ====== ======
NET INCOME PER SHARE: 0.40 0.32 0.80 0.67
Weighted average shares outstanding 2,724,609 2,720,175 2,724,293 2,719,271
Dividends per share 0.10 0.09 0.20 0.18
See accompanying note to consolidated financial statements
</TABLE>
6
<PAGE> 7
Schedule 3
PRINCETON NATIONAL BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
(UNAUDITED)
For the Six Months
Ended June 30
1997 1996
-------- --------
(in thousands)
Balance, January 1 $40,197 $37,646
Net income 2,174 1,810
Cash dividends (545) (489)
Change in unrealized gain (loss)
on investment securities
available-for-sale,
net of tax effect 7 (531)
Sale of treasury stock 32 53
------- -------
Balance, June 30 $41,865 $38,489
======= =======
See accompanying note to consolidated financial statements
7
<PAGE> 8
<TABLE>
Schedule 4
PRINCETON NATIONAL BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
<CAPTION>
For the Three Months For the Six Months
Ended June 30 Ended June 30
1997 1996 1997 1996
(in thousands) -------- -------- -------- --------
<S> <C> <C> <C> <C>
OPERATING ACTIVITIES:
Net income $1,097 $875 $2,174 $1,810
Adjustments to reconcile net income to net cash provided by
operating activities:
Depreciation 226 232 452 459
Provision for possible loan losses 207 0 312 0
Amortization of goodwill and other intangible assets 116 58 234 139
Amortization of premiums (discounts) on investment securities,
net of accretion 18 109 58 212
(Gain) loss on sales of securities, net (71) 9 (68) 26
Loss on sales of other real estate 1 5 1 5
Loans originated for sale (1,597) (2,572) (2,265) (6,413)
Proceeds from sales of loans originated for sale 1,834 1,297 2,756 3,701
Increase (decrease) in accrued interest payable 95 (51) 128 58
(Increase) decrease in accrued interest receivable (106) (628) 775 366
Increase in other assets (904) (497) (958) (554)
Increase in other liabilities 86 582 444 746
------ ------ ------ ------
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES 1,002 (581) 4,043 555
------ ------ ------ ------
INVESTING ACTIVITIES:
Proceeds from sales of investment securities available-for-sale 3,247 249 3,488 339
Proceeds from maturities of investment securities available-for-sale 10,927 17,210 23,651 34,080
Purchase of investment securities available-for-sale (10,532) (25,131) (19,811) (37,078)
Proceeds from maturities of investment securities held-to-maturity 85 140 575 1,070
Purchase of investment securities held-to-maturity (623) (147) (893) (821)
Proceeds from sales of other real estate owned 126 11 181 11
Net increase in loans (9,823) (10,250) (11,255) (11,526)
Purchases of premises and equipment (138) (524) (276) (668)
Payment for acquisition, net of cash and cash equivalents acquired 0 (2,947) 0 (2,947)
------ ------ ------- -------
NET CASH USED FOR INVESTING ACTIVITIES (6,731) (21,389) (4,340) (17,540)
------ ------- ------- --------
FINANCING ACTIVITIES:
Net increase in deposits 9,553 22,229 8,408 13,555
Net increase (decrease) in short-term borrowings 3,462 136 (2,503) (2,834)
Proceeds from long-term borrowings 0 1,000 0 1,000
Payments for long-term borrowings 0 (150) (150) (300)
Dividends paid (273) (245) (545) (489)
Sale of treasury stock 21 23 32 53
------- ------- ------- -------
NET CASH PROVIDED BY FINANCING ACTIVITIES 12,763 22,993 5,242 10,985
------- ------- ------- -------
INCREASE IN CASH AND CASH EQUIVALENTS 7,034 1,023 4,945 (6,000)
CASH AND CASH EQUIVALENTS AT BEGINNING OF QUARTER AND YEAR 19,044 17,411 21,133 24,434
------- ------- ------ -------
CASH AND CASH EQUIVALENTS AT JUNE 30 26,078 18,434 26,078 18,434
======= ======= ====== =======
8
<PAGE> 9
Supplemental disclosures of cash flow information:
Cash paid during the period for:
Interest $3,646 $3,564 $7,176 $7,006
Income taxes $784 $557 $934 $557
Supplemental disclosures of non-cash flow activities:
Amounts transferred to other real estate owned $0 $0 $108 $0
See accompanying note to consolidated financial statements
</TABLE>
9
<PAGE> 10
Schedule 5
PRINCETON NATIONAL BANCORP, INC. AND SUBSIDIARY
NOTE TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
The accompanying unaudited consolidated financial statements have
been prepared in accordance with the instructions to Form 10-Q and do
not include all of the information required by generally accepted
accounting principles for complete financial statements and related
footnote disclosures. In the opinion of management, all adjustments
(consisting only of normal recurring accruals) considered for a fair
presentation of the results for the interim period have been included.
For further information, refer to the financial statements and notes
included in the Registrant's 1996 Annual Report on Form 10-K. Results
of operations for interim periods are not necessarily indicative of
the results that may be expected for the year.
10
<PAGE> 11
Schedule 6
PRINCETON NATIONAL BANCORP, INC. AND SUBSIDIARY
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
June 30, 1997
(UNAUDITED)
The following discussion provides information about Princeton
National Bancorp, Inc.'s (PNB) financial condition and results of
operations for the quarter ending June 30, 1997. This discussion
should be read in conjunction with the attached consolidated financial
statements and note thereto.
RESULTS OF OPERATIONS
---------------------
Net income for the second quarter of 1997 was $1,097,000, or
$0.40 per share, an increase from the second quarter of 1996 of
$222,000 (or 25.4%), which represents an increase of $0.08 per share
(or 25.0%). For the first six months of 1997, net income was
$2,174,000 (or $0.80 per share), compared to $1,810,000 (or $0.67 per
share) in the first six months of 1996. Annualized return on average
assets and return on average equity were 1.06% and 10.77%,
respectively, for the second quarter of 1997, compared with 0.88% and
9.22% for the second quarter of 1996. For the six-month periods, the
annualized returns on average assets and average equity were 1.06% and
10.79%, respectively, for 1997, compared to 0.91% and 9.56% in 1996.
As a result of the continued increase in the average balance of
loans outstanding, the change in the net interest margin was again the
most significant reason for the increase in net income. Net interest
income before any provision for loan losses was $3,961,000 for the
second quarter of 1997, compared to $3,652,000 for the second quarter
of 1996 (an increase of $309,000 or 8.5%). Additionally, for the six-
month periods, net interest income before any provision for loan
losses was $7,770,000 for 1997, as compared to $7,115,000 for 1996,
representing an increase of $655,000 (or 9.2%). As of June 30, 1997,
total loans represented 63.4% of total assets compared with 62.0% as
of June 30, 1996.
Non-interest income increased by $103,000 (or 14.0%) during the
second quarter of 1997 as compared to the second quarter of 1996. For
the first six months of 1997, non-interest income has increased to
$1,679,000 from $1,426,000 in the first six months of 1996 (an
increase of $253,000 or 17.7%). The majority of the overall increase
can be seen in two categories: service charges on deposit accounts
and trust and farm management fees ($108,000 or 19.8% and $59,000 or
11.9%, respectively). Additionally, PNB incurred net losses of
$26,000 from securities transactions in the first six months of 1996,
while recording net gains of $68,000 in the first six months of 1997
(an improvement to non-interest income of $94,000).
11
<PAGE> 12
Non-interest expenses for the second quarter of 1997 amounted to
$3,105,000, a decrease of $132,000 (4.1%) from the second quarter of
1996. This decrease is due to a decline in trust customer expenses of
$233,000 (or 97.1%). Year-to-date non-interest expenses compare
favorably in 1997 to the same time period in 1996, increasing only
$49,000 (0.8%). The decline in trust customer charges, as well as a
decrease in FDIC/OCC assessments (due to lower premium rates) and
other operating expenses, has helped offset increases in salaries and
employee benefits and data processing expenses. The latter having
increased due to the Sandwich branch acquisition completed in June,
1996. Therefore, these categories would not have been influenced in
the first six months of 1996.
ANALYSIS OF FINANCIAL CONDITION
-------------------------------
Total assets at June 30, 1997 increased to $428,405,000 from
$420,407,000 at December 31, 1996 ($8.0 million or 1.9%). This
increase is attributable mainly to local governmental taxing bodies
having large balances on deposit with the bank at June 30 due to real
estate tax collections during the latter part of June. This increase
is reflected in the interest-bearing demand category of deposits as it
increased from $78.9 million on December 31, 1996 to $85.0 million on
June 30, 1997 ($6.1 million or 7.7%). Time deposits and savings
deposits also increased over the same time frame ($5.3 million and
$0.5 million, respectively) offsetting a decrease in demand deposits
of $3.4 million. Additionally, customer repurchase agreements have
decreased in the first six months by $4.2 million or 36.2%.
Loan demand has been very strong during the first six months of
1997. Loan balances, net of unearned interest, increased to
$271,380,000 at June 30, 1997, compared to $260,780,000 at December
31, 1996 (an increase of $10.6 million or 4.1%). Non-performing loans
totaled $1,281,000 or 0.47% of net loans at June 30, 1997, as compared
to $1,157,000 or 0.45% of net loans at December 31, 1996. As a result
of the continued strong loan demand, total investment securities
decreased from $117.0 million at December 31, 1996 to $110.0 million
at June 30, 1997.
During the first six months of 1997, PNB charged off $449,000 of
loans and had recoveries of $285,000. This compares to charge-offs of
$639,000 and recoveries of $570,000 during the first six months of
1996. The allowance for possible loan losses is based on factors that
include the overall composition of the loan portfolio, types of loans,
past loss experience, loan delinquencies, potential substandard and
doubtful credits, and such other factors that, in management's best
judgement, deserve evaluation. The adequacy of the allowance is
monitored monthly. During the first six months of 1997, PNB recorded
a loan loss expense of $312,000. This is a result of the higher
charge-offs and net losses that were incurred in 1996, particularly in
the installment loan category. While management has strengthened
underwriting practices in this area, management also expects to
12
<PAGE> 13
continue to increase the balance in the allowance for possible loan
losses. At June 30, 1997, the balance in the allowance was $1,778,000
which is 0.66% of total loans, compared with $1,630,000 or 0.63% of
total loans at December 31, 1996.
At June 30, 1997, the recorded balance in loans for which
impairment has been recognized in accordance with FASB Statement No.
114 totaled $723,000, all of which related to impaired loans which do
not require a related allowance for possible loan losses as the
carrying value of the loans exceeds the discounted present value of
expected future cash flows. Interest recognized on impaired loans
(during the portion of this quarter that they were impaired) is not
considered material.
CAPITAL RESOURCES
-----------------
Federal regulations require all financial institutions to
evaluate capital adequacy by the risk-based capital method, which
makes capital requirements more sensitive to the differences in the
level of risk assets. At June 30, 1997, total risk-based capital was
14.73%, compared to 13.88% at December 31, 1996. Accordingly, the
Tier 1 capital ratio also increased from 8.59% at December 31, 1996,
to 8.87% at June 30, 1997. Total stockholders' equity to total assets
at June 30, 1997 increased to 9.77% from 9.56% at December 31, 1996.
LIQUIDITY
---------
Liquidity is measured by a financial institution's ability to
raise funds through deposits, borrowed funds, capital, or the sale of
assets. Additional sources of liquidity, including cash flow from
both the repayment of loans and the securitization of assets, are also
considered in determining whether liquidity is satisfactory. Cash
flows provided by operating and financing activities, offset by those
used by investing activities, resulted in a net increase in cash and
cash equivalents of $4,945,000 from December 31, 1996 to June 30,
1997. This provision was due largely to a net increase in deposits
and a decrease in investments (maturities and sales greater than
purchases), offset by a net increase in loans. For more detailed cash
flow information, see PNB's Consolidated Statement of Cash Flows.
IMPACT OF NEW ACCOUNTING STANDARDS
----------------------------------
In February 1997, FASB Statement No. 128, "Earnings Per Share"
(FAS 128), was issued. FAS 128 supersedes APB Opinion No. 15,
Earnings Per Share and specifies the computation, presentation, and
disclosure requirements for earnings per share (EPS) for entities with
publicly held common stock or potential common stock. FAS 128 was
issued to simplify the computation of EPS and to make the U.S.
standard more compatible with the EPS standards of other countries and
13
<PAGE> 14
that of the International Accounting Standards Committee. It replaces
the presentation of primary EPS with a presentation of basic EPS and
fully diluted EPS with diluted EPS. It also requires dual
presentation of basic and diluted EPS on the face of the income
statement for all entities with complex capital structures and
requires a reconciliation of the numerator and denominator of the
basic EPS computation to the numerator and denominator of the diluted
EPS computation.
Basic EPS, unlike primary EPS, excludes dilution and is computed
by dividing income available to common stockholders by the weighted-
average number of common shares outstanding for the period. Diluted
EPS reflects the potential dilution that could occur if securities or
other contracts to issue common stock were exercised or converted into
common stock that then shared in the earnings of the entity. Diluted
EPS is a computed similarity to fully diluted EPS under APB 15.
FAS 128 is effective for financial statements for both interim
and annual periods ending after December 15, 1997. Earlier
application is not permitted (although pro forma EPS disclosure in the
footnotes for periods prior to required adoption is permitted). After
adoption, all prior-period EPS data presented shall be restated to
conform with FAS 128. PNB does not expect adoption of FAS 128 to have
a significant impact on its financial statements.
EFFECTS OF INFLATION
--------------------
The consolidated financial statements and related consolidated
financial data presented herein have been prepared in accordance with
generally accepted accounting principles and practices within the
banking industry which require the measurement of financial position
and operating results in terms of historical dollars, without
considering the changes in the relative purchasing power of money over
time due to inflation. Unlike most industrial companies, virtually
all the assets and liabilities of a financial institution are monetary
in nature. As a result, interest rates have a more significant impact
on a financial institution's performance than the effects of general
levels of inflation.
14
<TABLE> <S> <C>
<ARTICLE> 9
<LEGEND>
Item 6(a)
This schedule contains summary financial information extracted from
the Princeton National Bancorp, Inc. and Subsidiary Consolidated
Balance Sheets and Statements and Subsidiary Consolidated Balance
Sheets and Statements of Income and is qualified in its entirety by
reference to such financial statements.
For the six month period ending June 30, 1997:
----------------------------------------------------------------------
</LEGEND>
<MULTIPLIER> 1000
<S> <C> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> JUN-30-1997
<CASH> $22,078
<INT-BEARING-DEPOSITS> $329,294
<FED-FUNDS-SOLD> $4,000
<TRADING-ASSETS> $0
<INVESTMENTS-HELD-FOR-SALE> $98,637
<INVESTMENTS-CARRYING> $11,401
<INVESTMENTS-MARKET> $11,458
<LOANS> $271,380
<ALLOWANCE> $1,778
<TOTAL-ASSETS> $428,405
<DEPOSITS> $367,109
<SHORT-TERM> $11,034
<LIABILITIES-OTHER> $4,197
<LONG-TERM> $4,200
$0
$0
<COMMON> $13,800
<OTHER-SE> $28,065
<TOTAL-LIABILITIES-AND-EQUITY> $428,405
<INTEREST-LOAN> $11,709
<INTEREST-INVEST> $3,281
<INTEREST-OTHER> $84
<INTEREST-TOTAL> $15,074
<INTEREST-DEPOSIT> $6,932
<INTEREST-EXPENSE> $7,304
<INTEREST-INCOME-NET> $7,770
<LOAN-LOSSES> $312
<SECURITIES-GAINS> $68
<EXPENSE-OTHER> $6,197
<INCOME-PRETAX> $2,940
<INCOME-PRE-EXTRAORDINARY> $2,940
<EXTRAORDINARY> $0
<CHANGES> $0
<NET-INCOME> $2,174
<EPS-PRIMARY> $0.80
<EPS-DILUTED> $0.80
<YIELD-ACTUAL> 4.33
<LOANS-NON> $1,258
<LOANS-PAST> $23
<LOANS-TROUBLED> $0
<LOANS-PROBLEM> $131
<ALLOWANCE-OPEN> $1,630
<CHARGE-OFFS> $449
<RECOVERIES> $285
<ALLOWANCE-CLOSE> $1,778
<ALLOWANCE-DOMESTIC> $1,778
<ALLOWANCE-FOREIGN> $0
<ALLOWANCE-UNALLOCATED> $0
</TABLE>
