FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
QUARTERLY REPORT UNDER SECTION 13 OR 15 (d) OF THE
SECURITIES EXCHANGE ACT OF 1934
FIRST FINANCIAL CORPORATION
June 30 , 1998
<PAGE>
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 June 30, 1998
Commission File Number 0-16759
FIRST FINANCIAL CORPORATION
(Exact name of registrant as specified in its charter)
INDIANA 35-1546989
(State or other jurisdiction (I.R.S. Employer
Incorporation or organization) Identification No.)
One First Financial Plaza, Terre Haute, IN 47807
(Address of principal executive office) (Zip Code)
(812) -238-6000
(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 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 June 30, 1998 were outstanding 7,210,183 shares without par value, of the
registrant.
1<PAGE>
FIRST FINANCIAL CORPORATION
FORM 10-Q
INDEX
PART I. Financial Information Page No.
Item 1. Financial Statements:
Consolidated Statements of Condition.................................3
Consolidated Statements of Income....................................4
Consolidated Statements of Comprehensive Income......................5
Consolidated Statements of Cash Flows................................6
Notes to Consolidated Financial Statements...........................7
Item 2. Management s Discussion and Analysis of
Financial Condition and Results of Operations................9
PART II. Other Information:
Item 4. Submission of Matters to a Vote of
Security Holders...........................................11
Signatures..............................................................13
2<PAGE>
<TABLE>
FIRST FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF CONDITION
<CAPTION>
June 30, December 31,
1998 1997
(Unaudited)
(Amounts in thousands)
<S> <C> <C>
ASSETS
Cash and due from banks $58,964 $53,815
Federal funds sold and securities purchased under agreement to resell 0 280
Investments:
Available-For-Sale 567,559 527,993
Loans:
Commercial, financial and agricultural 211,162 229,855
Real estate - construction 28,702 23,734
Real estate - mortgage 615,198 561,466
Installment 201,118 188,552
Lease financing 3,363 3,271
1,059,543 1,006,878
Less:
Unearned income 1,008 1,079
Allowance for loan losses 15,452 13,503
1,043,083 992,296
Accrued interest receivable 14,567 14,086
Premises and equipment, net 24,478 24,925
Other assets 22,768 21,541
TOTAL ASSETS $1,731,419 $1,634,936
LIABILITIES AND SHAREHOLDERS EQUITY
Deposits:
Noninterest-bearing $133,966 $162,880
Interest-bearing:
Certificates of deposit of $100,000 or more 235,054 195,487
Other interest-bearing deposits 901,451 836,157
1,270,471 1,194,524
Short-term borrowings:
Federal funds purchased and securities
sold under agreements to repurchase 46,397 47,015
Treasury tax and loan open-end note 9,720 4,282
Advances from Federal Home Loan Bank 168,913 167,680
225,030 218,977
Other liabilities 19,310 18,718
Long-term debt 6,630 6,641
Long-term advances from Federal Home Loan Bank 34,752 30,596
TOTAL LIABILITIES 1,556,193 1,469,456
Shareholders equity:
Common stock, $.125 stated value per share;
authorized 10,000,000 shares; issued and outstanding 903 877
7,015,504 shares for 1997 and 7,225,483 shares for 1998
including treasury shares of 15,300
Additional capital 60,309 59,787
Retained earnings 107,766 98,046
Accumulated other comprehensive income:
Unrealized gains on securities, net of tax 7,028 6,770
Less: Treasury shares at cost -780 0
TOTAL SHAREHOLDERS EQUITY 175,226 165,480
TOTAL LIABILITIES AND SHAREHOLDERS EQUITY $1,731,419 $1,634,936
The accompanying notes are an integral part of the consolidated financial statements.
</TABLE>
3<PAGE>
<TABLE>
FIRST FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
<CAPTION>
Three Months Ended Six Months Ended
June 30, June 30,
1998 1997 1998 1997
(Unaudited)
(Amounts in thousands, except per share amounts)
<S> <C> <C> <C> <C>
INTEREST INCOME:
Loans $23,151 $20,502 $45,755 $40,442
Investment securities:
Taxable 6,659 8,098 13,272 16,205
Tax-exempt 2,072 1,864 4,036 3,647
8,731 9,962 17,308 19,852
Other interest income 224 57 522 77
TOTAL INTEREST INCOME 32,106 30,521 63,585 60,371
INTEREST EXPENSE:
Deposits 12,885 11,585 25,076 22,889
Other 3,700 3,930 7,583 7,811
TOTAL INTEREST EXPENSE 16,585 15,515 32,659 30,700
NET INTEREST INCOME 15,521 15,006 30,926 29,671
Provision for loan losses 1,549 1,336 2,956 2,737
NET INTEREST INCOME AFTER
PROVISION FOR LOAN LOSSES 13,972 13,670 27,970 26,934
OTHER INCOME
Trust department income 503 495 1,085 985
Service charges on deposit accounts 325 338 645 676
Other service charges and fees 1,184 804 2,264 1,690
Investment securities gains 39 124 391 355
Other 274 158 556 572
2,325 1,919 4,941 4,278
OTHER EXPENSES
Salaries and employee benefits 5,983 5,326 11,977 10,601
Occupancy expense 684 702 1,388 1,396
Equipment expense 830 769 1,648 1,531
Other 3,200 2,800 6,190 5,680
10,697 9,597 21,203 19,208
INCOME BEFORE INCOME TAX
EXPENSE 5,600 5,992 11,708 12,004
Income Tax Expense 1,430 1,618 3,038 3,199
NET INCOME $4,170 $4,374 $8,670 $8,805
BASIC EARNINGS PER SHARE $0.58 $0.62 $1.20 $1.25
Weighted average number of
shares outstanding 7,217 7,016 7,221 7,016
The accompanying notes are an integral part of the consolidated financial statements.
</TABLE>
4<PAGE>
<TABLE>
FIRST FINANCIAL CORPORATION
Consolidated Statements of Comprehensive Income
<CAPTION>
Three Months Ended Six Months Ended
June 30, June 30,
1998 1997 1998 1997
(Unaudited)
(Amounts in thousands)
<S> <C> <C> <C> <C>
Net Income $4,170 $4,374 $8,670 $8,805
Other Comprehensive income, net of tax:
Unrealized gains (losses) losses on securities:
Unrealized holding gains (losses) arising during period 1,034 1,969 512 -1,828
Less: reclassification adjustment for gains - 25 - 81 -254 - 231
included in net income
Other Comprehensive income 1,009 1,888 258 - 2,059
Comprehensive Income $5,179 $6,262 $8,928 $6,746
</TABLE>
5<PAGE>
<TABLE>
FIRST FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
<CAPTION>
Six Months Ended
June 30,
1998 1997
(Unaudited)
(Amounts in thousands)
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income $8,670 $8,805
Adjustment to reconcile net income to net cash
provided by operating activities:
Provision for loan losses 2,956 2,737
Provision for depreciation and amortization 1,228 1,352
Net (increase) decrease in accrued interest receivable -481 152
Other, net -1,671 -912
NET CASH PROVIDED BY OPERATING ACTIVITIES 10,702 12,134
CASH FLOWS FROM INVESTING ACTIVITIES:
Net decrease from purchase and maturities of interest-bearing
deposits with financial institutions 0 499
Sales and maturities of available-for-sale securities 146,026 78,787
Purchases of available-for-sale securities -178,689 -105,042
Loans made to customers, net of repayments -23,463 -21,847
Net decrease in federal funds sold 680 1,725
Additions to premises and equipment -929 -470
NET CASH USED BY INVESTING ACTIVITIES -56,375 -46,348
CASH FLOWS FROM FINANCING ACTIVITIES:
Net increase from sales and
redemptions of certificates of deposit 80,492 19,629
Net (decrease) increase in other deposits -36,818 1,977
Net increase in short-term borrowings 6,053 16,145
Cash dividends -2,740 -2,338
Purchase of treasury stock -780 0
Net increase (decrease) in long-term debt 4,145 -5,997
NET CASH PROVIDED BY FINANCING ACTIVITIES 50,352 29,416
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 4,679 -4,798
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR 54,285 66,658
CASH AND CASH EQUIVALENTS, END OF PERIOD $58,964 $61,860
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Cash paid during the period for interest $32,190 $32,444
Income taxes paid $3,689 $3,134
The accompanying notes are an integral part of the consolidated financial statements.
</TABLE>
6<PAGE>
FIRST FINANCIAL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. The accompanying June 30, 1998 and 1997 consolidated financial statements
are unaudited. The December 31, 1997, consolidated financial statements are
as reported in the First Financial Corporation (the Corporation) 1997 annual
report.
The significant accounting policies followed by the Corporation and its
subsidiaries for interim financial reporting are consistent with the
accounting policies followed for annual financial reporting. All adjustments
which are in the opinion of management necessary for a fair statement of the
results for the periods reported have been included in the accompanying
consolidated financial statements and are of a normal recurring nature.
On March 16, 1998, the Corporation completed its previously announced
acquisition of Morris Plan Company of Terre Haute, Inc., (Morris Plan). In
exchange for all of the outstanding common shares of Morris Plan,
the Corporation issued 210,000 shares of its common stock. The acquisition has
been accounted for as a pooling of interests. The Corporation s consolidated
financial statements for periods prior to the acquisition have not been
restated because the acquisition would not result in material changes to
previously reported statements. The acquisition resulted in an increase of
4.6 million to the Corporation s shareholders equity at March 16, 1998.
Effective January 1, 1998 the Corporation adopted Statement of Financial
Accounting Standards (SFAS) No. 130, Reporting Comprehensive Income . SFAS
No. 130 establishes standards for the reporting and display of comprehensive
income and its components in a full set of general-purpose financial statements.
The Corporation s comprehensive income, determined in accordance with the
provisions of the statements, was $8.9 million and $6.7 million for the six
months ended June 30, 1998 and 1997, respectively. Accumulated other
comprehensive income, resulting from unrealized gains or losses on available for
sale securities, at December 31, 1997 and June 30, 1998 was $6.8 and
$7.0 million respectively.
Recently Issued Accounting Standards Statement of Financial Accounting
Standards (SFAS) No. 131, Disclosures about Segments of an Enterprise and
Related Information and SFAS No. 133, Accounting for Derivative Instruments
and Hedging Activities have been issued by the Financial Accounting Standards
Board. The Corporation is currently reviewing these two pronouncements and
does not anticipate the adoption of SFAS No. 131 and SFAS No. 133 to have a
material effect on the Corporation s financial position or results of
operation.
2. A loan is considered to be impaired when, based upon current information
and events, it is probable that the Corporation will be unable to collect all
amounts due according to the contractual terms of the loan. Impairment is
primarily measured based on the fair value of the loan s collateral.
The following table summarizes impaired loan information.
(000's)
June 30,
1998 1997
Impaired loans with related reserve for loan losses calculated
under SFAS 114............................................... 993 2,107
Interest payments on impaired loans are typically applied to principal
unless collectability of the principal amount is deemed to be fully assured,
in which case interest is recognized on a cash basis.
7 <PAGE>
Interest income on commercial loans and residential real estate loans is no
longer accrued at the time the loan is 90 days delinquent unless the credit is
well secured and in the process of collection. Commercial loans are charged off
at the time the loan becomes 180 days delinquent unless the loan is well
secured and in process of collection, or other circumstances support
collection. Credit card loans and other unsecured personal credit lines are
typically charged off no later than 180 days delinquent. Other consumer loans
are typically charged off when they become 150 days delinquent. In all cases,
loans must be placed on nonaccrual status or charged off at an earlier date if
collection of principal or interest is considered doubtful.
The interest on these loans is accounted for on the cash basis or cost
recovery method, until qualifying for return to accrual status. Loans may be
returned to accrual status when all the principal and interest amounts
contractually due are paid.
3. The cost and fair value of the Corporation s investments at June 30, 1998
are shown below. All investments are considered as available-for-sale.
(000's)
June 30, 1998
Amortized Cost Fair Value
Available-For-Sale:
United States Government $155,041 $156,689
United States Government Agencies 206,509 208,268
State and Municipal 151,540 156,568
Other 45,892 46,034
$558,982 $567,559
8 <PAGE>
FIRST FINANCIAL CORPORATION
ITEM 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations
The purpose of this discussion is to point out key factors in the
Corporation s recent performance, compared with earlier periods. The discussion
should be read in conjunction with the financial statements beginning on page
three of this report. All figures are for the consolidated entities. It is
presumed the readers of these financial statements and the following narrative
have previously read the Corporation s annual report for 1997.
Forward-looking statements contained in the following discussion are based
on estimates and assumptions that are subject to significant business, economic
and competitive uncertainties, many of which are beyond the Corporation s
control and are subject to change. These uncertainties can affect actual results
and could cause actual results to differ materially from those expressed in any
forward-looking statements in this discussion.
Summary of Operating Results
The Corporation reported earnings of $8.7 million for the first six months
which reflect a 1.5% decrease from the same period for 1997, while the second
quarter net income of $4.2 million reflects a 4.7% decrease from the second
quarter of 1997. Although net interest income was up $1.3 million, or 4.2%, the
first six months results were impacted by expenses resulting from the
acquisition of Morris Plan in Terre Haute. Basic earnings per share results of
$1.20 and $0.58 for the six and three month periods in 1998, respectively,
reflect similar decreases from the respective prior year's $1.25 and $0.62 per
share.
Net Interest Income
The Corporation's primary source of earnings is net interest income, which
is the difference between the interest earned on loans and other investments and
the interest incurred for deposits and other sources of funds. Although net
interest income increased to $30.9 million in the first six months of 1998 from
$29.7 million in the same period of 1997, the net interest margin decreased to
4.16% in 1998 from 4.20% in the same period of 1997. This decrease was the
result of a higher cost of funds in 1998 than the prior year. Higher costs of
funds also affected second quarter net interest income which increased to $15.5
million from $15.0 million for the same quarter of 1997 while net interest
margin decreased to 4.14% for the second quarter of 1998 from 4.24% in the same
quarter of 1997.
Other Income
Other income for the six months of 1998, as compared to the same period of
1997, increased $663,000 or 15.5%. Trust income and other service fee income
increased to $1.1 million and $2.3 million or 10.1% and 34.0%, respectively,
compared to the same period of 1997 as a result of increased service volume or
increased service charges. Second quarter other income increased to $2.3
million from $1.9 million compared to the same quarter of 1997. These increases
are the result of a focused effort to increase fee based income.
Other Expenses
Other expenses for the first six months of 1998, as compared to the same
period of 1997, increased to $21.2 million from $19.2 million. This represents
an increase of $2.0 million or 10.4%. Most of the components of other expenses
increased slightly while salaries and related benefits, the largest component
of this group, increased from $10.6 million to almost $12.0 million or 13.0%.
The primary reason for this increase were higher average salaries and higher
health insurance costs. This also affected second quarter other expenses which
increased to $10.7 million from $9.6 million for the same quarter of 1997.
Expenses were also increased by the acquisition of Morris Plan during the
first quarter of 1998. There were no other significant changes.
9<PAGE>
Allowance for Loan Losses
The Corporation's provision for loan losses increased to almost $3.0
million from $2.7 million for the first six months of 1998 compared to the
same period a year earlier.
At June 30, 1998, the allowance for loan losses was 1.46% of net loans.
This compares with an allowance of 1.34% at December 31, 1997. Net chargeoffs
for the first six months of 1998 were $2.0 million compared to $.9 million for
the same period of 1997. This increase was due to the resolution of a few
problem commercial loans. The ratio of net chargeoffs to average loans
outstanding for the last five years ended December 31, 1997, was .35%. With
this experience and based on management's review of the portfolio, management
believes the allowance of $15.5 million at June 30, 1998 is adequate.
Underperforming Assets
Underperforming assets consist primarily of (1) nonaccrual loans and leases
on which the ultimate collectability of the full amount of interest is
uncertain, (2) loans and leases which have been renegotiated to provide for a
reduction or deferral of interest or principal because of a deterioration in the
financial position of the borrower, (3) loans and leases past due ninety days or
more as to principal or interest and (4) land sold on contract. A summary of
Underperforming assets at June 30, 1998 and December 31, 1997 follows:
(000') (000')
June 30, 1998 December 31, 1997
Nonaccrual loans and leases $ 4,243 $ 3,866
Renegotiated loans and leases 7 17
Land sold on contract and others 2,037 2,236
Total non-performing assets $ 6,287 $ 6,119
Ninety days past due loans and leases 5,539 4,384
Total Underperforming assets $11,826 $10,503
Ratio of the allowance for loan losses
as a percentage of non-performing assets 246% 221%
Ratio of the allowance for loan losses
as a percentage of Underperforming assets 131% 129%
The following loan categories comprise significant components of the
non-performing loans at June 30, 1998
Non-Accrual Loans:
(000's) (000's)
June 30, 1998 December 31, 1997
1-4 family residential 1,782 42% $ 728 19%
Commercial loans 1,268 30 1,622 42
Installment loans 922 22 872 23
Other, various 271 6 644 16
$4,243 100% $3,866 100%
Past due 90 days or more:
1-4 family residential $3,418 62% $2,785 64%
Commercial loans 976 18 112 3
Installment loans 688 12 851 19
Other, various 457 8 636 14
$5,539 100% $4,384 100%
10<PAGE>
There are no material industry concentrations within the
under-performing loans.
In addition to the above under-performing loans, certain loans are felt
by management to be impaired for reasons other than the current repayment
status. Such reasons may include but not be limited to previous payment history,
bankruptcy proceedings, industry concerns, or information related to a specific
borrower that may result in a negative future event to that borrower. At
June 30, 1998 the Corporation had $144,000 of doubtful loans which are still in
accrual status.
Interest Rate Sensitivity and Liquidity
The Corporation charges the nine subsidiary banks with monitoring and
managing their individual sensitivity to fluctuations in interest rates and
assuring that they have adequate liquidity to meet loan demand or any potential
unexpected deposit withdrawals. This function is facilitated by the
Asset/Liability Committee. The primary goal of the committee is to maximize net
interest income within the interest rate risk limits approved by the Board of
Directors. This goal is accomplished through management of the subsidiary banks
balance sheet liquidity and interest rate risk exposures due to the changes in
economic conditions and interest rate levels.
Interest Rate Risk
Management considers interest rate risk to be the Corporation s most
significant market risk. Interest rate risk is the exposure to changes in net
interest income as a result of changes in interest rates. Consistency in the
Corporation s net income is largely dependent on the effective management of
this risk.
The Committee reviews a series of monthly reports to ensure that
performance objectives are being met. The Committee monitors and controls
interest rate risk through earnings simulation. Simulation modeling measures the
effects of changes in interest rates, changes in the shape of the yield curve,
and changes in prepayment speeds on net interest income. The primary measure of
Interest Rate Risk is "Earnings at Risk." This measure projects the earnings
effect of various rate movements over the next three years on net interest
income. It is important to note that measures of interest rate risk have
limitations and are dependent upon certain assumptions. These assumptions are
inherently uncertain and, as a result, the model cannot precisely predict the
impact of interest rate fluctuations on net interest income. Actual results will
differ from simulated results due to timing, frequency and amount of interest
rate changes as well as overall market conditions. The Committee has performed a
thorough analysis and believes the assumptions to be valid and theoretically
sound. The relationships are continuously monitored for behavioral changes.
In its interest rate risk management, the Corporation currently does
not utilize any derivative products and is not engaged in securities trading
activity. The Corporation instead invests in assets whose value is derived from
an underlying asset. These assets are mostly government agency issued
mortgage-backed securities. The performance of these assets in changing rate
environments is included in the following table.
The table below shows the Corporation's estimated earnings sensitivity
profile as of June 30, 1998. Given a 100 basis point increase in rates, net
interest income would increase .10% over the next 12 months and decrease 1.41%
over the next 24 months. A 100 basis point decrease would result in a .44%
decrease in net interest income over the next 12 months and a .65% increase over
the next 24 month periods. These estimates assume all rates changed overnight
and management took no action as a result of this change.
Basis Point Percentage Change in net Interest Income
Interest Rate Change 12 months 24 months 36 months
Down 300 -2 .95% .46% -5.26%
Down 200 - 1.31 .93 - 2.76
Down 100 - . 44 .65 - 1.12
Up 100 .10 -1.41 .07
Up 200 .53 -1.86 1.46
Up 300 1.62 .43 4.43
11<PAGE>
Liquidity Risk
Liquidity is measured by each bank's ability to raise funds to meet the
obligations from its customers, including deposit withdrawals and credit needs.
This is accomplished primarily by maintaining sufficient liquid assets in the
form of investment securities and core deposits. The Corporation has $14.0
million of investments that mature throughout the coming 12 months. The
Corporation also anticipates $76.1 million of principal payments from
mortgage-backed securities. Given the current rate environment, the Corporation
anticipates $20.8 million of Federal Agency Securities to be called within the
next 12 months. With these sources of funds, the Corporation currently
anticipates adequate liquidity to meet the expected obligations of its
customers.
Capital Adequacy
As of June 30, 1998 the Corporation's leverage ratio was 9.74% compared
to 9.68% at December 31, 1997.
At June 30 , 1998 the Corporation's total capital, which includes
Tier II capital, was 17.13% compared to 17.10% at December 31, 1997.These
amounts exceed minimum regulatory capital requirements.
Year 2000
The Corporation has established a Year 2000 (YR2000) team which is
meeting and discussing issuesrelated to YR2000. This team has the background
and financial support to complete the early-stage assessment of YR2000 issues.
The Corporation is also in the process of obtaining statements of direction
from all of its hardware and software vendors to determine their plans for
resolving the YR2000 issue. The statements of direction from the vendors have
indicated that the vendors have already resolved the issue or have scheduled a
release that will include YR2000 date fixes. The goal of the YR2000 team is to
install all software updates by the first quarter of 1999. In addition, testing
has been scheduled to perform daily processing on December 31, 1999, January 1,
2000, and February 29, 2000. The Corporation believes that YR2000 costs will
not have a material adverse effect on the Corporation s financial position or
future results of operations.
12<PAGE>
FIRST FINANCIAL CORPORATION
PART II OTHER INFORMATION
ITEM 4. Submission of Matters to a Vote of Security Holders
(a) The Annual meeting of the shareholders of the Corporation was held on
April 15, 1998.
(b) The following were elected Directors of the Corporation for a three
year term: Walter A. Bledsoe, Max Gibson, William Niemeyer and
Donald E. Smith.
(c) The shareholders unanimously approved the annual report of the
Corporation and unanimously approved the actions of the Directors and
Officers of the Corporation for the fiscal year ended December 31,
1997.
No other information is required to be filed under Part II of this form.
13<PAGE>
FIRST FINANCIAL CORPORATION
PART II OTHER INFORMATION
FORM 10-Q
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.
FIRST FINANCIAL CORPORATION
(Registrant)
Date: August 14, 1998 By (Signature)
Donald E. Smith, President
Date: August 14, 1998 By (Signature)
John W. Perry, Secretary
Date: August 14, 1998 By (Signature)
Michael A. Carty, Treasurer
14<PAGE>
15<PAGE>
<TABLE> <S> <C>
<ARTICLE> 9
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> JUN-30-1998
<CASH> 58,964
<INT-BEARING-DEPOSITS> 0
<FED-FUNDS-SOLD> 0
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 0
<INVESTMENTS-CARRYING> 567,559
<INVESTMENTS-MARKET> 567,559
<LOANS> 1,058,535
<ALLOWANCE> 15,452
<TOTAL-ASSETS> 1,731,419
<DEPOSITS> 133,966
<SHORT-TERM> 225,030
<LIABILITIES-OTHER> 19,310
<LONG-TERM> 41,382
0
0
<COMMON> 903
<OTHER-SE> 174,323
<TOTAL-LIABILITIES-AND-EQUITY> 1,731,419
<INTEREST-LOAN> 45,755
<INTEREST-INVEST> 17,308
<INTEREST-OTHER> 522
<INTEREST-TOTAL> 63,585
<INTEREST-DEPOSIT> 25,076
<INTEREST-EXPENSE> 32,659
<INTEREST-INCOME-NET> 30,926
<LOAN-LOSSES> 2,956
<SECURITIES-GAINS> 391
<EXPENSE-OTHER> 21,203
<INCOME-PRETAX> 11,708
<INCOME-PRE-EXTRAORDINARY> 11,708
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 8,670
<EPS-PRIMARY> 1.20
<EPS-DILUTED> 1.20
<YIELD-ACTUAL> 4.14
<LOANS-NON> 4,243
<LOANS-PAST> 5,539
<LOANS-TROUBLED> 7
<LOANS-PROBLEM> 144
<ALLOWANCE-OPEN> 14,473
<CHARGE-OFFS> 2,591
<RECOVERIES> 614
<ALLOWANCE-CLOSE> 15,452
<ALLOWANCE-DOMESTIC> 15,452
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
