<PAGE> 1
U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
[X]QUARTERLY REPORT PURSUANT SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For quarter ended March 31, 1997
[ ]TRANSITION REPORT PURSUANT SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transitions period from_________to______________
Commission file number 2-79912
HARBOR BANCORP
- -------------------------------------------------------------------------------
(Exact name of small business issuer as specified in its charter)
California 95-3764395
- -------------------------------------------------------------------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
11 Golden Shore
Long Beach, CA 90802
- -------------------------------------------------------------------------------
(Address of principal executive offices)
(562) 491-1111
- -------------------------------------------------------------------------------
(Issuer's telephone number)
Not applicable
- -------------------------------------------------------------------------------
(Former name, former address and former fiscal year,
if changed since last report.)
Check whether the issuer (1) has filed all reports required to be filed by
Section 13 or 15(d) of the Securities Exchange Act of 1934 during the past 12
months (or for such shorter periods 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
--------- ---------
Check whether the registrant has filed all documents and reports required to
be filed by Sections 12, 13 or 15(d) of the Securities Exchange Act of 1934
after the distribution of securities under a plan confirmed by a court.
Yes_______ No ______ Other N/A
State the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practical date. Common stock, no par value -
1,415,214 shares as of March 31, 1997
- -------------------------------------------------------------------------------
<PAGE> 2
HARBOR BANCORP AND SUBSIDIARIES
INDEX
PART I. FINANCIAL INFORMATION
ITEM 1. Financial Statements (Unaudited)
Condensed consolidated balance sheets - March 31, 1997 and December 31,
1996
Condensed consolidated statements of income - three months ended March 31,
1997 and 1996
Condensed consolidated statements of cash flows - three months ended March
31, 1997 and 1996
Notes to condensed consolidated financial statements - March 31, 1997
ITEM 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations
PART II. OTHER INFORMATION
ITEM 1. Legal Proceedings
ITEM 2. Changes in Securities
ITEM 3. Defaults Upon Service Securities
ITEM 4. Submission of Matter to a Vote of Security Holders
ITEM 5. Other Information
ITEM 6. Exhibits and Reports on Form 8-K
PART III. SIGNATURES
1
<PAGE> 3
ITEM I: FINANCIAL INFORMATION
HARBOR BANCORP AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
March 31, December 31,
1997 1996
(Unaudited)
ASSETS (000's omitted)
------ ----------------------
<S> <C> <C>
Cash and due from banks $ 23,323 $ 20,143
Federal funds sold and securities
purchased under resale agreements 24,800 8,400
-------- --------
Cash and cash equivalents 48,123 28,543
Time certificates of deposit 495 495
Investment securities:
Held to maturity securities (market value
of $5,702,410 in 1997 and $6,094,994
in 1996) 5,698 6,065
Available for sale securities 5,764 18,788
Loans 143,297 143,988
Less allowance for loan losses 2,822 2,738
-------- --------
Net loans 140,475 141,250
Bank premises and equipment:
Land 159 159
Buildings and improvements 4,256 4,249
Furniture, fixtures and equipment 3,586 3,572
-------- --------
8,001 7,980
Less accumulated depreciation
and amortization 6,221 6,132
-------- --------
1,780 1,848
Other real estate owned 329 329
Accrued interest receivable 920 856
Other assets 1,589 1,929
-------- --------
Total assets $205,173 $200,103
======== ========
</TABLE>
(Continued)
2
<PAGE> 4
HARBOR BANCORP AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Continued)
<TABLE>
<CAPTION>
March 31, December 31,
1997 1996
(Unaudited)
(000's omitted)
------------------------
<S> <C> <C>
LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------
Deposits:
Interest bearing $ 93,939 $ 90,442
Noninterest bearing 94,081 92,989
--------- ---------
Total deposits 188,020 183,431
Accrued expenses and other liabilities 1,094 972
--------- ---------
Total liabilities 189,114 184,403
Stockholders' equity:
Common stock, no par value; 5,000,000
shares authorized; issued and out-
standing, 1,415,214 shares in 1997
and in 1996 13,963 13,963
Retained earnings 2,247 1,871
Net unrealized security losses (151) (134)
--------- ---------
Total stockholders' equity 16,059 15,700
--------- ---------
Total liabilities and
stockholders' equity $ 205,173 $ 200,103
========= =========
</TABLE>
See notes to unaudited consolidated financial statements.
3
<PAGE> 5
HARBOR BANCORP AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended
March 31,
(000's omitted, except per share data)
1997 1996
------ ------
<S> <C> <C>
Interest income:
Interest and fees on loans $3,356 $3,025
Interest on U.S. government
and agency obligations 161 404
Interest on obligations of
states and political
subdivisions 6 3
Interest on other investments 20 21
Interest on federal funds sold
and securities purchased under
agreements to resale 206 145
------ ------
Total interest income 3,749 3,598
Interest expense:
Interest on deposits 755 656
Interest on borrowed funds -- 4
------ ------
Total interest expense 755 660
Net interest income 2,994 2,938
Provision for loan
losses 150 196
Net interest income after
provision for loan
losses 2,844 2,742
Other operating income:
Service charges on deposit
accounts 221 260
Loan servicing fees and other
fees and charges 51 34
------ ------
Total other operating
income 272 294
</TABLE>
(Continued)
4
<PAGE> 6
HARBOR BANCORP AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
(Continued)
<TABLE>
<CAPTION>
Three Months Ended
March 31,
(000's omitted, except per share data)
1997 1996
---------- ----------
<S> <C> <C>
Noninterest expense:
Salaries, wages and employee
benefits 987 954
Occupancy expenses 538 541
Equipment expenses 82 106
Data processing expenses 133 153
Other operating expenses 784 930
---------- ----------
Total noninterest
expense 2,524 2,684
---------- ----------
Income before taxes based on
income 592 352
Provision for taxes based
on income 216 125
---------- ----------
Net income $ 376 $ 227
---------- ----------
Weighted average number of
common shares and common
share equivalents 1,434,245 1,434,245
---------- ----------
Net income per common
share (Note 1) $ 0.26 $ 0.16
========== ==========
</TABLE>
See notes to unaudited consolidated financial statements.
5
<PAGE> 7
HARBOR BANCORP AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
<TABLE>
<CAPTION>
Three Months Ended March 31,
(000's omitted)
1997 1996
-------- --------
<S> <C> <C>
Operating activities:
Net income $ 376 $ 227
Adjustments to reconcile net
income to net cash provided
by operating activities:
Provision for depreciation and
amortization 109 120
Provision for loan
losses 150 196
Increase in
interest receivable (64) (268)
Increase in
interest payable 32 5
Other 415 (14)
-------- --------
Net cash provided by operating
activities 1,018 266
Investing activities:
Proceeds from maturities, sales
and calls of investment
securities 18,360 7,128
Purchases of investment securities (4,991) --
Net decrease in loans 625 1,495
Capital expenditures (21) (157)
Other real estate -- (1,406)
-------- --------
Net cash provided by
investing activities 13,973 7,060
</TABLE>
(Continued)
6
<PAGE> 8
HARBOR BANCORP AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
(Continued)
<TABLE>
<CAPTION>
Three Months Ended March 31,
(000's omitted)
1997 1996
------- -------
<S> <C> <C>
Financing activities:
Net increase in commercial
and other demand deposits, savings
and money market deposits and
certificates of deposit 4,589 14,456
------- -------
Net cash provided by
financing activities 4,589 14,456
Increase in cash
and cash equivalents 19,580 21,782
Cash and cash equivalents at
beginning of period 28,543 26,164
------- -------
Cash and cash equivalents at
end of period $48,123 $47,946
======= =======
</TABLE>
See notes to unaudited consolidated financial statements.
7
<PAGE> 9
HARBOR BANCORP AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
March 31, 1997
1. Summary of Significant Accounting Policies:
Basis of presentation
The accompanying unaudited condensed consolidated financial statements have
been prepared in accordance with generally accepted accounting principles for
interim financial information and with the instructions to Form 10-QSB and Rule
10-01 of Regulation S-X. Accordingly, they do not include all of the
information and footnotes required by generally accepted accounting principles
for complete financial statements. In the opinion of management, all
adjustments (consisting of normal recurring accruals) considered necessary for
a fair presentation have been included. Operating results for the three month
period ended March 31, 1997 are not necessarily indicative of the results that
may be expected for the year ending December 31, 1997.
Certain reclassifications have been made in the 1996 financial statements to
conform to the presentations used in 1997.
The balance sheet on December 31, 1996 has been derived from the audited
financial statements at that date. The accompanying notes are an integral part
of these financial statements.
Principles of consolidation
Harbor Bancorp ("the Company") was formed on July 23, 1982. The unaudited
condensed consolidated financial statements include all the accounts of the
Company and its wholly-owned subsidiaries, Harbor Bank and Harbor Bank
Properties. All intercompany accounts and transactions have been eliminated.
Investment securities
The Company adopted Statement of Financial Accounting Standard No. 115
"Accounting for Certain Investments in Debt and Equity Securities" as of
January 1, 1994.
8
<PAGE> 10
Investment securities held to maturity are securities which the Company has the
positive intent and ability to hold until maturity. Accordingly, these
securities are carried at amortized cost. Unrealized holding gains and losses
are not recognized in the financial statements until realized or until a
decline in fair value below cost is deemed to be other than temporary.
Investment securities available for sale include debt securities and mutual
funds. These securities are stated at fair value with unrealized holding gains
and losses reflected as a separate component of stockholders' equity, net of
income taxes. Gains and losses are determined on the specific identification
method. Any decline in the fair value of the investments which is deemed to be
other than temporary is charged against current earnings.
Impaired loans
The Company adopted SFAS No. 114, "Accounting by Creditors for Impairment of a
Loan," as amended, effective January 1, 1995. This statement requires that
impaired loans be measured based on the present value of expected future cash
flows discounted at the loan's effective interest rates or the fair value of
the underlying collateral, and specifies alternative methods for recognizing
interest income on loans that are impaired or for which there are credit
concerns. For purposes of applying this standard, impaired loans have been
defined as all non-accrual loans. The Company's policy for income recognition
was not affected by adoption of the standard. The adoption of SFAS No. 114 did
not have any effect on the total reserve for credit losses or related
provision.
Allowance for loan losses
The allowance for loan losses represents management's evaluation of the quality
of the loan portfolio. The allowance is maintained at a level considered to be
adequate for potential loan losses based on management's assessment of various
factors affecting the loan portfolio, which includes a review of problem loans,
business conditions and the overall quality of the loan portfolio.
The allowance is increased by the provision for loan losses charged to
operations and reduced by loans charged off to the allowance, net of
recoveries.
Other Real Estate
Other real estate ("ORE") is stated at the lower of cost or fair market value,
net of estimated selling costs.
9
<PAGE> 11
Income taxes
Income tax expense is the current and deferred tax consequence, of events that
have been recognized in the financial statements, as measured by the provisions
of enacted tax law.
Bank premises and equipment
Bank premises and equipment are stated at cost, less accumulated depreciation
and amortization. Depreciation and amortization are computed using the
straight-line method over the estimated useful lives of the related assets
which range from 10 to 30 years for buildings and improvement and 3 to 10 years
for furniture, fixtures and equipment.
Net income per common share
Net income per common share was computed by dividing net income by the weighted
average number of common stock and common stock equivalents (stock options)
outstanding during each period. The number of shares used in the per share
calculations for the periods ended March 31, 1997 and 1996 was 1,434,245.
In February 1997, the Financial Accounting Standards Board issued Statement No.
128, "Earnings per Share", which is required to be adopted on December 31,
1997. At that time, the Company will be required to change the method
currently used to compute earnings per share and to restate all prior periods.
Under the new requirements for calculating primary earnings per share, the
dilutive effect of stock options will be excluded. The impact is for the first
quarter ended March 31, 1997 and March 31, 1996 of $0.01 and $0.00 per share,
respectively. The impact of Statement 128 on the calculation of fully diluted
earnings per share for these quarters is not expected to be material.
10
<PAGE> 12
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
Harbor Bancorp's ("Company") performance during the first three months of 1997
shows continued stability which is supported by the local and national economic
environment. The purpose of the following discussion is to focus on the above
mentioned performance and other information about the Company's financial
condition and results of operations which is not otherwise apparent from the
consolidated financial statements included in this quarterly report. Reference
should be made to those statements and the condensed financial data presented
herein for an understanding of the following discussion and analysis.
Financial Condition
During the first three months of 1997, the Company experienced a net increase
in liquid assets. Cash and cash equivalents increased $19,574,000, or 68.58%,
from $28,543,000 at December 31, 1996 to $48,117,000 at March 31, 1997.
Investment securities declined $13,391,000, or 53.88%, from $24,853,000 at
December 31, 1996 to $11,462,000 at March 31, 1997. This net increase in
liquid assets is primarily a result of maintaining liquidity in the form of
short term and overnight investments in anticipation of growth in loan volume
in the remainder of 1997 and to accommodate possible seasonal reductions in
title and escrow deposit levels, during year-end and the first quarter 1997.
During the first quarter of 1997, loan volume declined slightly with loans at
$143,297,000 at March 31, 1997 compared to loans at $143,988,000 at December
31, 1996. The decline of $691,000, or .48%, in loans is primarily a result of
loan payoffs. Total assets of the Company increased from $200,103,000 at
December 31, 1996 to $205,173,000 at March 31, 1997. This increase of
$5,070,000 or 2.53%, in total assets occurred primarily in cash and cash
equivalents.
Effective January 1, 1994, the Company adopted the provisions of Statement of
Financial Accounting Standards No. 115, "Accounting for Certain Investments in
Debt and Equity Securities". As of March 31, 1997, the bank had $5,698,000
in securities classified as held to maturity and $5,764,000 in securities
classified as available for sale.
Substantially all of the Company's deposits are local, core deposits. The
Company does not have any out-of-area brokered deposits included in the deposit
base. Total deposits increased $4,589,000, or 2.50%, for the first three
months of 1997. This is a result of an increase of interest bearing deposits of
$3,497,000, or 3.87%, from $90,442,000 at December 31, 1996 to
11
<PAGE> 13
$93,939,000 at March 31, 1997. In addition, there was an increase in
noninterest bearing deposits of $1,092,000, or 1.17%, from $92,989,000 at
December 31, 1996 to $94,081,000 at March 31, 1997.
As a result of the Federal Deposit Insurance Corporation ("the FDIC")
examination at December 31, 1993, the bank and the Federal Deposit Insurance
Corporation executed a Memorandum of Understanding ("FDIC Memorandum") dated
August 3, 1994.
As a result of an examination conducted by the FDIC as of January 8, 1996, the
FDIC determined that the Bank was in compliance with the terms of the FDIC
Memorandum, and the FDIC removed the FDIC Memorandum on May 22, 1996.
On January 3, 1995, the Bank and the Superintendent executed a Memorandum of
Understanding ("Superintendent's Memorandum) as a result of an examination at
December 31, 1993.
As a result of a request made by the Board of Directors of Harbor Bank on May
28, 1996, the Superintendent determined that the Bank was in compliance with
the terms of the Superintendent's Memorandum, and the Superintendent removed
the Superintendent's Memorandum on June 12, 1996.
As a result of an examination conducted by the Federal Reserve Bank of San
Francisco ("FRB") as of March 31, 1994, the Company and the FRB executed a
Memorandum of Understanding (the "FRB Memorandum") dated October 25, 1994.
Based on the Company's overall improved financial condition and the adoption of
certain resolutions by the Company's Board of Directors, the FRB terminated the
FRB Memorandum effective December 3, 1996.
Liquidity and Interest Rate Sensitivity Management
The primary functions of asset/liability management are to assure adequate
liquidity and maintain an appropriate balance between interest sensitive
earning assets and interest bearing liabilities. Liquidity management involves
the ability to meet the cash flow requirements of customers who may be either
depositors wanting to withdraw funds or borrowers who may need assurance that
sufficient funds will be available to meet their credit needs. Interest rate
sensitivity management seeks to avoid fluctuating interest margins and to
enhance consistent growth of net interest income through periods of changing
interest rates.
Historically, the overall liquidity of the Company has been enhanced by a
significant aggregate amount of core deposits. As
12
<PAGE> 14
described in the analysis of financial condition, the Bank has not relied on
large-denomination time deposits.
To meet short-term liquidity needs, the Bank has maintained adequate balances
in federal funds sold, certificates of deposits with other financial
institutions and investment securities having maturities of five years or less.
Liquid assets (cash, federal funds sold and securities purchased under
agreements to resale, deposits in other financial institutions and investment
securities) as a percent of total deposits are 31.95% and 29.38% as of March
31, 1997 and December 31, 1996, respectively.
The Bank's goal is to maintain federal funds sold at $7 to $10 million dollars
on an average with minimum daily investments monitored closely. However, as
part of management's liquidity plan for year-end and the first quarter of 1997,
federal funds sold was maintained at higher than normal levels in anticipation
of potential seasonal reduction in title and escrow deposits. Deposits with
other institutions and securities purchased under agreements to resale will be
maintained as alternative short-term investment products.
Interest rate sensitivity varies with different types of interest-earning
assets and interest-bearing liabilities. Harbor Bank intends to maintain
interest-earning assets, comprised primarily of both loans and investments, and
interest-bearing liabilities, comprised primarily of deposits, maturing or
repricing evenly in order to eliminate any impact from interest rate changes.
In this way, both assets and liabilities can be substantially repriced
simultaneously with interest rate changes.
The impact of inflation on a financial institution differs significantly from
that exerted on an industrial concern, primarily because its assets and
liabilities consist primarily of monetary items. The relatively low proportion
of the Company's fixed assets to total assets reduces both the potential of
inflated earnings resulting from understated depreciation charges and the
potential of significant understatement of absolute asset values. However,
inflation does have a considerable indirect impact on banks, including
increased loan demand, as it becomes necessary for producers and consumers to
acquire additional funds to maintain the same levels of production, consumption
and new investments. Inflation also frequently results in high interest rates
which can affect both yields on earning assets and rates paid on deposits and
other interest-bearing liabilities. The Company monitors inflation rates to
insure that ongoing programs are compatible with fluctuations in inflation and
resultant changes in interest rates.
13
<PAGE> 15
Results of Operations
The Company reported net income of $376,000, or $0.26 per share, for the three
months ended March 31, 1997, compared to net income of $227,000, or $0.16 per
share, for the same period in 1996.
Net interest income is an effective measurement of how well Management has
balanced the Company's interest rate sensitive assets and liabilities as well
as optimizing the allocation of resources.
Net interest income of $2,994,000 for the three months ended March 31, 1997,
reflects an increase of $56,000 or 1.91%, from $2,938,000 for the same period
of 1996. Rising interest rates and net earning assets, which increased from
$177,736,000 at December 31, 1996 to $180,054,000 at March 31, 1997, are the
primary reason for the improvement in net interest income.
The Company recorded $150,000 in provision for loan losses during the first
three months of 1997 compared to $196,000 for the three months ended March 31,
1996. The decrease in the provision for possible loan losses is primarily a
result of loan volume and improvement of the quality of the loan portfolio.
During the first three months of 1997, the Company maintained a strict focus on
controlling noninterest expense. The focus on noninterest expense control
began with a corporate commitment in 1989 and, today, continues to be
emphasized and enforced. As a result of this continued effort, total
noninterest expense categories of salaries, wages and employee benefits,
occupancy expense, equipment expense, data processing expense and other
operating expense decreased $160,000 or 5.96%, during the three months ended
March 31, 1997 over the same period in 1996.
Risk Elements
The policy of Harbor Bank is that all loans that are past due for ninety (90)
days must be placed on non-accrual status and interest previously accrued is
reversed against interest income. At March 31, 1997, loans on non-accrual
status were $3,637,000, or 2.54% of total loans, compared to $3,783,000, or
2.63% at December 31, 1996. Accruing loans which are contractually past due
ninety (90) days or more were $71,000 at March 31, 1997 compared to $170,000 at
December 31, 1996.
At March 31, 1997, the Company was not aware of information regarding
performing loans which would cause them to have serious doubts as to the
ability of the borrowers to comply with loan repayment terms, nor are they
aware of any trends which might have a material impact on future operating
results.
14
<PAGE> 16
Capital Resources
Management seeks to maintain a level of capital adequate to support anticipated
asset growth and credit risks and the ensure that the Company is within
established regulatory guidelines and industry standards. In 1996,
stockholders' equity increased $1,143,555 due to retention of the Company's
1996 net income. The Company's capital plan for 1997 contemplates continued
growth in stockholders' equity through the retention of net income. Minimum
capital ratios, for capital adequacy, required under the final 1994 risk-based
capital regulations are 4.0% for Tier 1 Capital and 8.0% for Total Capital. At
December 31, 1996 the Company has Tier 1 Capital of 10.33% and Total Capital of
11.58% and at March 31, 1997 the company had Tier 1 Capital of 10.91% and Total
Capital of 12.17%.
15
<PAGE> 17
HARBOR BANCORP AND SUBSIDIARIES
PART II. OTHER INFORMATION
ITEM 1. Legal Proceedings
Due to the nature of their business, the Company, the Bank, and
their subsidiaries are subject to legal action threatened or filed which arise
from the normal course of their business. Management believes that the
eventual outcome of all currently pending legal proceedings against the Bank
will not be material to the Company's or the Bank's financial position or
results of operations.
ITEM 2. Changes in Securities
None
ITEM 3. Defaults Upon Service Securities
None
ITEM 4. Submission of Matter to a Vote of Security Holders
None
ITEM 5. Other Information
None
ITEM 6. Exhibits and Reports on Form 8-k
Exhibit 27 - Financial Data Schedule.
16
<PAGE> 18
PART III. SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant duly caused this report to be signed on its
behalf by the undersigned thereto duly authorized.
HARBOR BANCORP
Dated: April 25, 1997 /s/ DALLAS E. HAUN
----------------------- -----------------------
DALLAS E. HAUN
Vice President
Dated: April 25, 1997 /s/ MELISSA LANFRE'
----------------------- -----------------------
MELISSA LANFRE'
Vice President & CFO
17
<TABLE> <S> <C>
<ARTICLE> 9
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> MAR-31-1997
<CASH> 23,323
<INT-BEARING-DEPOSITS> 495
<FED-FUNDS-SOLD> 24,800
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 5,764
<INVESTMENTS-CARRYING> 5,698
<INVESTMENTS-MARKET> 5,702
<LOANS> 143,297
<ALLOWANCE> 2,822
<TOTAL-ASSETS> 205,173
<DEPOSITS> 188,020
<SHORT-TERM> 0
<LIABILITIES-OTHER> 1,094
<LONG-TERM> 0
0
0
<COMMON> 13,963
<OTHER-SE> 2,247
<TOTAL-LIABILITIES-AND-EQUITY> 205,173
<INTEREST-LOAN> 3,356
<INTEREST-INVEST> 187
<INTEREST-OTHER> 206
<INTEREST-TOTAL> 3,749
<INTEREST-DEPOSIT> 755
<INTEREST-EXPENSE> 755
<INTEREST-INCOME-NET> 2,994
<LOAN-LOSSES> 150
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 2,524
<INCOME-PRETAX> 592
<INCOME-PRE-EXTRAORDINARY> 592
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 376
<EPS-PRIMARY> .27
<EPS-DILUTED> .26
<YIELD-ACTUAL> 0
<LOANS-NON> 3,637
<LOANS-PAST> 71
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 2,737
<CHARGE-OFFS> 66
<RECOVERIES> 1
<ALLOWANCE-CLOSE> 2,822
<ALLOWANCE-DOMESTIC> 0
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
