UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10- QSB
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 1999
--------------------------
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from __________ to __________
Commission file number 0-12510
---------------------
MARATHON BANCORP
- -----------------------------------------------------
(Exact name of registrant as specified in its charter)
California 95-3770539
- -------------------------------------------------------------------------------
(State or other jurisdiction of incorporation) (I.R.S. Employer Identification
No.)
11150 West Olympic Boulevard, Los Angeles, CA 90064
- ------------------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (310) 996-9100
--------------
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 November 120, 1999, there were 3,830,019 shares of no par Common Stock
issued and outstanding.
<PAGE>
<TABLE>
<CAPTION>
Consolidated Statements of Financial Condition
Marathon Bancorp and Subsidiary
<S> <C> <C>
September 30, December 31,
ASSETS 1999 1998
--------------- --------------
Cash and Due From Banks 6,704,000 5,074,000
Federal Funds Sold 3,525,000 4,175,000
Interest-Bearing Deposits with Financial Institutions 199,000 0
Investment Securities
Securities Available for Sale 5,628,000 6,001,000
Securities Held to Maturity (approximate market value:
1999-$12,855,000; 1998-$14,306,000 13,088,000 14,291,000
--------------- --------------
18,716,000 20,292,000
Loans 49,088,000 42,992,000
Less Allowance for Credit Losses (659,000) (733,000)
--------------- --------------
NET LOANS 48,429,000 42,259,000
Premises and Equipment 334,000 346,000
Other Real Estate Owned 0 0
Cash Surrender Value of Life Insurance 1,329,000 1,280,000
Accrued Interest and Other Assets 1,203,000 974,000
--------------- --------------
TOTAL ASSETS $ 80,439,000 $ 74,400,000
=============== ==============
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits
Noninterest-Bearing 29,700,000 24,478,000
Interest-Bearing 41,402,000 40,740,000
--------------- --------------
TOTAL DEPOSITS 71,102,000 65,218,000
Accrued Interest and Other Liabilities 475,000 524,000
--------------- --------------
TOTAL LIABILITIES 71,577,000 65,742,000
Shareholders' Equity
Preferred Shares - No Par Value, 1,000,000 Shares Authorized,
No Shares Issued and Outstanding 0 0
Common Shares - No Par Value, 9,000,000 Shares Authorized,
Issued and Outstanding: 3,827,019 in 1999 and 3,820,819 in 1998 13,646,000 13,630,000
Net Unrealized Gain on Securities Available for Sale (150,000) (8,000)
Accumulated Deficit (4,634,000) (4,964,000)
--------------- --------------
Total Shareholders' Equity 8,862,000 8,658,000
--------------- --------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 80,439,000 $ 74,400,000
=============== ==============
</TABLE>
<TABLE>
<CAPTION>
Consolidated Statements of Income
Marathon Bancorp and Subsidiary
Three Months Ended Nine Months Ended
September 30, September 30,
<S> <C> <C> <C> <C>
1999 1998 1999 1998
-------------------- ------------------- -------------- ----------
INTEREST INCOME
Interest and Fees on Loans $ 982,000 $ 956,000 $ 2,744,000 $2,827,000
Interest on Investment Securities - Taxable 262,000 218,000 768,000 562,000
Other Interest Income 64,000 124,000 205,000 354,000
-------------------- ------------------- -------------- ----------
TOTAL INTEREST INCOME 1,308,000 1,298,000 3,717,000 3,743,000
INTEREST EXPENSE
Interest on Demand Deposits 8,000 9,000 25,000 30,000
Interest on Money Market and Savings 218,000 178,000 606,000 485,000
Interest on Time Deposits 127,000 194,000 402,000 520,000
Other Interest Expense - - -
-------------------- ------------------- -------------- ---------
TOTAL INTEREST EXPENSE 353,000 381,000 1,033,000 1,035,000
-------------------- ------------------- -------------- ----------
NET INTEREST INCOME 955,000 917,000 2,684,000 2,708,000
Provision for Credit Losses - - - -
-------------------- ------------------- -------------- ----------
NET INTEREST INCOME AFTER
PROVISION FOR CREDIT LOSSES 955,000 917,000 2,684,000 2,708,000
NONINTEREST INCOME
Service Charges and Fees on Deposits 73,000 64,000 217,000 180,000
Other Noninterest Income 109,000 35,000 187,000 106,000
Gain/Loss on sale of securities ( 9,000) - ( 9,000) -
-------------------- ------------------- -------------- ----------
TOTAL NONINTEREST INCOME 173,000 99,000 395,000 286,000
-------------------- ------------------- -------------- ----------
NONINTEREST EXPENSE
Salaries and Employee Benefits 451,000 369,000 1,309,000 1,154,000
Occupancy Expenses 130,000 133,000 396,000 403,000
Furniture and Equipment 33,000 32,000 91,000 90,000
Professional Services 43,000 34,000 97,000 77,000
Business Promotion 17,000 - 54,000 20,000
Stationery and Supplies 14,000 27,000 42,000 83,000
Data Processing Services 120,000 108,000 349,000 326,000
Messenger and Courier Services 16,000 20,000 52,000 66,000
Insurance and Assessments 31,000 50,000 94,000 223,000
Legal Fees and Costs 25,000 41,000 86,000 122,000
Net Loss on Sale of OREO - ( 2,000) - 41,000
Net Operating Cost of Other Real Estate Owned ( 1,000) 5,000 - 21,000
Other Expenses 72,000 87,000 188,000 224,000
-------------------- ------------------- -------------- ----------
TOTAL NONINTEREST EXPENSE 951,000 904,000 2,758,000 2,850,000
-------------------- ------------------- -------------- ----------
INCOME (LOSS) BEFORE INCOME TAXES 177,000 112,000 321,000 144,000
Income Tax (benefit) ( 1,000) 2,000 ( 9,000) 3,000
-------------------- ------------------- -------------- ----------
NET INCOME $ 178,000 $ 110,000 $ 330,000 $ 141,000
==================== =================== ============== ==========
Per Share Data:
Net Income (Loss) - Basic $ 0.05 $ 0.03 $ 0.09 $ 0.04
Net Income (Loss) - Diluted $ 0.05 $ 0.03 $ 0.09 $ 0.04
Book Value Per Share $ 2.32 $ 2.19
</TABLE>
<TABLE>
<CAPTION>
Consolidated Statements of Cash Flows
Marathon Bancorp and Subsidiary
<S> <C> <C>
Nine Months Ended September 30,
------------------------------------------------
1999 1998
--------------------------------- -------------
OPERATING ACTIVITIES
Net Income (Loss) $ 330,000 $ 141,000
Adjustments to Reconcile Net Gain (Loss) to Net Cash Provided
by Operating Activities:
Depreciation and Amortization 100,000 109,000
Provision for Credit Losses - -
Provision for OREO Losses - -
Loss on Sale of Other Real Estate Owned - 44,000
Net Amortization of Premiums and Discounts
on Investment Securities 37,000 ( 34,000)
Loss on Sale of Securities Available for Sale 9,000 -
Net Change in Deferred Loan Origination Fees 103,000 13,000
Net Change in Accrued Interest, Other Assets
and Other Liabilities ( 526,000) ( 654,000)
--------------------------------- -------------
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES 53,000 ( 381,000)
INVESTING ACTIVITIES
Net Decrease (Increase) in Interest-Bearing Deposits with
Financial Institutions 199,000 -
Purchases of Available for Sale Securities (3,771,000) (5,448,000)
Purchases of Held to Maturity Securities (3,312,000) (12,782,000)
Proceeds from Maturities of Available for Sale Securities 2,000,000 6,500,000
Proceeds from the Sale of Available for Sale Securities 991,000 -
Proceeds from Maturities of Held to Maturity Securities 5,480,000 6,290,000
Net (Increase) Decrease in Loans (6,273,000) (430,000)
Proceeds from Sale of Other Real Estate Owned - 1,634,000
Purchases of Furniture, Fixtures and Equipment (88,000) (58,000)
--------------------------------- -------------
NET CASH (USED) PROVIDED BY INVESTING ACTIVITIES (4,774,000) (4,294,000)
FINANCING ACTIVITIES
Net Change in Demand Deposits, Money Market and Savings 8,648,000 (6,845,000)
Net Change in Time Deposits (2,764,000) 4,484,000
Proceeds from Issuance of Common shares 16,000 23,000
NET CASH PROVIDED (USED) BY FINANCING ACTIVITIES 5,900,000 (2,338,000)
DECREASE IN CASH AND CASH EQUIVALENTS 1,179,000 (7,013,000)
Cash and Cash Equivalents at Beginning of Year 9,249,000 16,027,000
--------------------------------- -------------
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 10,428,000 $ 9,014,000
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Interest Paid $ 988,000 $ 997,000
Income Taxes Paid (Refunded) $ ( 9,000) $ 3,000
Loans Made to Facilitate the Sale of Other Real Estate Owned $ - $ 600,000
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Consolidated Statements of Equity
Marathon Bancorp and Subsidiary
<S> <C> <C> <C> <C> <C> <C>
Accumulated
Other
Common Shares Comprehensive Accumulated Comprehensive
Shares Amount Income Deficit Income Total
--------------- --------------- ------------- --------------- ---------- -----
Balance, January 1, 1999 3,820,819 $ 13,630,000 $ (4,964,000) $ (8,000) $ 8,658,000
Exercise of Stock Options 6,200 16,000 16,000
Comprehensive Income:
Net Income 330,000 330,000 330,000
Net Change in Unrealized
Gain (Loss) on Available
for-Sale Securities (142,000) (142,000) (142,000)
--------------
Total Comprehensive Income $ 188,000
===============
--------------- --------------- ------------- ------------- -----------
Balance, September 30, 1999 3,827,019 $ 13,646,000 $ (4,634,000) $ (150,000) $ 8,862,000
=============== =============== ============= ============= ===========
</TABLE>
<PAGE>
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
(1) BASIS OF PRESENTATION AND MANAGEMENT REPRESENTATIONS
The unaudited consolidated financial statements have been prepared in accordance
with the instructions to Form 10-QSB and, therefore, do not include all
footnotes normally required for complete financial disclosure. While the
Company believes that the disclosures presented are sufficient to make the
information not misleading, reference may be made to the consolidated financial
statements and notes thereto included in the Company's 1998 Annual Report on
Form 10-KSB.
The accompanying consolidated statements of financial condition and the related
consolidated statements of operations and cash flows reflect, in the opinion of
management, all material adjustments necessary for fair presentation of the
Company's financial position as of September 30, 1999 and December 31, 1998,
results of operations and changes in cash flows for the nine-month period ended
September 30, 1999 and 1998. The results of operations for the nine-month
period ended September 30, 1999 are not necessarily indicative of what the
results of operations will be for the full year ending December 31, 1999.
Certain reclassifications were made to prior years' presentations to conform to
the current year. These reclassifications are of a normal recurring nature.
(2) EARNINGS PER SHARE (EPS)
Basic 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 or resulted in the issuance of common stock that then shared
in the earnings of the entity.
Accordingly, the basic weighted average number of shares used to compute the net
income per share for the three-month period ended September 30th were 3,827,019
in 1999 and 3,820,656 in 1998 and for the nine-month period ended September 30th
were 3,825,880 for 1999 and 3,816,379 for 1998. There was no dilution to change
the basic average number of shares in any period leaving the diluted EPS the
same.
MANAGEMENT'S DISCUSSION AND ANALYSIS
The following discussion is intended to provide additional information about
Marathon Bancorp (the Company), its financial condition and results of
operations, which is not otherwise apparent from the consolidated financial
statements. Since Marathon National Bank (the Bank) represents a substantial
portion of the Company's activities and investments, the following relates
primarily to the financial condition and operations of the Bank. It should be
read in conjunction with the Company's 1998 Annual Report on Form 10-KSB.
FINANCIAL HIGHLIGHTS OVERVIEW
Net income for the nine-months ended September 30, 1999 increased $189,000 or
134% over the same period of 1998. The three-month net income was up $68,000 or
62% in 1999 versus1998. The per share earnings were also up, increasing to
$0.09 for year-to-date 1999 versus $0.04 for 1998, while the third quarter 1999
per share earnings were $0.05 versus $0.03 in 1998.
RESULTS OF OPERATIONS
Net Interest Income
Net interest income generated for the three months ended September 30, 1999 was
up $38,000 or 4%. The decrease in interest on time deposits was the most
significant item affecting the results. Interest and fees on loans were up
for the quarter, due to the fact that we increased our prime rate by 50 basis
points since June. The increase was based on the Federal Reserve Bank increasing
the target rate on fed funds by the same amount. With the rate increase the
year-to-date net interest income was only $24,000 less than 1998 recovering from
the rate decrease during the second half of 1998.
For the quarter the interest and fees on loans were up due to the increase in
the loan portfolio as well as the increase in prime rate which affects about 40%
of the loan portfolio. The interest on the investment portfolio also
increased by $44,000 or 20% and was due to higher yields obtained on
investments. Other interest income decreased because the investment in fed
funds was decreased to fund the loan portfolio increase. Interest income
earned year-to-date has been effected by the same factors, except that the loan
portfolio increase has taken place mostly in the third quarter.
The change in mix of deposits during the last year has helped to offset the rise
in rates that were paid on deposits. Time deposits which are our highest cost
of funds has decreased since the third quarter of 1998 while the interest cost
that declined in the latter half of 1998 has increased back to the levels paid
early in 1998. The rates paid on money market accounts as well as the average
balances have increased causing the rise in interest paid.
Noninterest Income
Non-interest income has increased for both the quarter and the nine-month
period. During the third quarter, there was a one-time recovery of $70,000 in
service charges, fees and interest thereon from a corporation that had gone into
receivership five years ago. Without that one-time recovery, other noninterest
income increased 11% for the quarter and 10% for the nine-month period. Third
quarter service charges and fees on deposit accounts increased 14% and also rose
21% for the nine-months ending September 1999. During the third quarter, the
bank realized a loss on sale of a security swapped for a higher yielding agency
security to improve future yield.
Noninterest Expense
Non-interest expenses increased by $47,000 or 5% for the third quarter. The
main factor was the increased human resource costs for two new loan officers.
The Bank increased its marketing costs with some direct mail programs and will
be continuing to do additional marketing in the fourth quarter and into 2000.
The bank decreased costs in stationary and supplies, courier services, insurance
and legal costs.
For the nine-month period non-interest costs declined $92,000 or 3% compared to
1998. Salaries and employee benefits were up from 1998 due to the increase in
staff. Professional services increased with the hiring of and outside firm
to do internal and policy and procedure auditing. Data processing costs are
higher and include Y2K upgrading charges. Insurance and assessment costs have
been reduced with the improved condition and quality of the Company. We now
receive the lowest rates for insurance and regulatory assessment.
The holding company reduced its expenses this year by changing its stock
transfer and registrar agent. The Company changed from Chase Mellon Shareholder
Services to U. S. Stock Transfer. This change cut our costs by approximately
$5,000 per year.
Provision for Credit Losses:
This year the bank has made no provision for credit losses due to the low level
of charge-offs and good recoveries for the year. Charge-offs for the year are
$187,000 with only $50,000 since the end of the first quarter while recoveries
are $113,000 for the year, with $94,000 in the third quarter. During 1998
charge-offs for the first nine months were $117,000 and loan recoveries were
$107,000.
Loans classified at September 30, 1999 as substandard or doubtful totaled
$2,192,000 or 4.5% of loans compared to $1,919,000 or 4.2% at September 30,
1998. The current classified loans total 24.7% of capital. Loans past due 30
days or more at the end of the quarter were $600,000 with no loans past due 90
days or more and no loans on non-accrual.
Based upon the current levels of classified and past due loans and management's
assessment of the overall quality of the loan portfolio management has
determined that the current level of reserve for credit losses is adequate.
This does not mean that the bank may not need to increase reserves if the
economy starts to decline or should problems arise with Y2K in the future that
were not anticipated.
ASSETS AND LIABILITIES
The Company has had good asset growth since December 31, 1998 increasing by
$6,039,000 or 8% with a large volume of the growth happening in the third
quarter. Assets for the quarter increased 7%. Almost all of this growth has
been in the loan portfolio, which has increased $6,096,000 or 14% since
year-end. We have had good success in the real estate construction area and in
commercial loans. Earlier in the year we had targeted the San Fernando Valley
area of Los Angeles for loan production and deposits and have had success. In
October the bank opened a loan production office there and we anticipate
continuing growth from this office.
With the loan portfolio increasing there has been no new investment in the
securities portfolio although, maturing investments have been reinvested at
better yields. The average in fed funds sold has stayed fairly constant and
cash has increased somewhat with an increase in the demand deposit accounts and
the increase in bank float that comes with it. The bank continues to have no
other real estate owned.
Deposits increased $5,884,000 or 9% since the end of 1998. The increase has
been in the non-interest bearing deposit accounts, which has helped the bank
to keep the cost of funds from increasing with the rising rate environment over
the last six months. The mix of interest-bearing deposits has changed through
the year. We have had a decrease in time deposits and an increase in our
investors money market accounts. With time deposit rates being somewhat higher
than the money market accounts this change in deposit mix also helped reduce
our deposit costs.
LIQUIDITY AND CAPITAL
Asset/Liability Management
Managing liquidity and the risks associated with interest rates and their impact
on both income and the present value of equity is the responsibility of the
Bank's Asset/Liability Committee. The committee monitors the liquidity position
to assure that sufficient funds are available for the funding of assets as well
as deposit fluctuations. Assets that are normally considered liquid are federal
funds sold, available for sale investment securities and cash and funds due from
banks. The Bank has backup fed fund lines with its correspondent banks and can
borrow at the Federal Reserve Bank discount window. During the third quarter,
the Bank was approved for membership in the Federal Home Loan Bank that gives us
an additional source of liquidity if needed for loan growth. During the third
quarter an increased deposit base funded the increase in the loan portfolio.
Interest rate risk management focuses on the maturity and repricing of interest
earning assets in relationship to the interest bearing liabilities that fund
them. Net interest income can be vulnerable to fluctuations arising from a
change in the general level of interest rates to the extent that the average
yield on earning assets responds differently to such a change than does the
average cost of funds.
The Company measures interest rate sensitivity by distributing the maturities
and repricing periods of assets and supporting funding liabilities into interest
sensitivity periods, summarizing interest rate risk in terms of the resulting
interest sensitivity gaps. A positive gap indicates that more interest
sensitive assets than interest sensitive liabilities will be repriced during a
specified period, while a negative gap indicates the opposite condition.
It is the Bank's policy to maintain an adequate balance of rate sensitive assets
to rate sensitive liabilities and understands that its business goals will
create asset sensitivity. Due to the fact that the Bank has a large portfolio
of noninterest bearing demand deposits the Company has historically been and
will continue to be asset sensitive with a positive gap. The Company currently
is asset sensitive but has been able to decrease its asset sensitivity during
the last year by a lengthening of maturities in the investment portfolio and a
decrease in time deposits. The Company's cumulative gap as a percent of total
assets was 30.9% at September 30, 1999 down from 38.2% at June 30, 1999 and
39.3% at December 31, 1998.
Capital
The Bank is required to meet certain minimum risk-based capital guidelines and
leverage ratios promulgated by the bank regulatory authorities. The risk based
capital standards establish capital requirements that are more sensitive to risk
differences between various assets, consider off balance sheet activities in
assessing capital adequacy, and minimize the disincentives to holding liquid,
low risk assets. The leverage ratio consists of tangible Tier 1 capital divided
by average total assets.
The Company's capital position is strong. The adequately capitalized risk-based
capital ratio required by the federal regulators is 8.0% and the well
capitalized ratio is 10.0%. At September 30, 1999 the Company and the Bank had
a risk based capital ratio of 16.1% and a Tier 1 capital leverage ratio of 11.5%
compared with a risk based ratio of 16.5% and a Tier 1 capital leverage ratio of
11.0% at September 30, 1998. The Company is under no special regulatory
restrictions.
YEAR 2000
The Company is well aware of the issues relating to the century date change and
the impact on computer systems and business operations. The Company started its
analysis of the problem in June 1997 when it sent letters to its vendors that
supplied computer services to the Company on the status of their Year 2000 (Y2K)
plans. All the mission critical vendors were well on their way with plans to
make their products Year 2000 compliant. The Company then went on to develop
its own Year 2000 plan. The Company's Year 2000 Plan (the Plan) was submitted to
the Board of Directors for review in January 1998 and approved in February 1998.
The Plan includes the steps necessary for the Company to become year 2000
compliant as well as the steps to be taken to check that the major borrowers and
fund providers of the Company are also working to become compliant. The
Company's main computer processing is supplied by the Fiserv CBS Service Bureau,
who has already modified and installed software that is Y2K compliant. The
Company, and the user group to which it belongs, has finished testing the Fiserv
software for all the critical dates and has had a third party review of the
testing done by an outside audit firm. The Company has received year 2000
compliant software from all its vendors within a time frame that allowed for
sufficient testing to insure year 2000 compliance. The Company has also tested
its other non-critical software programs that have been modified for year 2000.
A contingency plan to cover Y2K has been put in place and tested and we feel the
Company is now Y2K ready.
The Y2K costs to the Company have been both capital costs for the purchase of
new equipment and the expense for the maintenance and testing of computer
software. These costs have been expensed and others will be ongoing over the
next few months, but they should not have a major impact on future earnings.
PART II. OTHER INFORMATION
Item 1. Legal Proceedings
None.
Item 2. Changes 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
None.
Item 6. Exhibits and Reports on Form 8-K
None.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
MARATHON BANCORP
Date: November 12, 1999 Craig D. Collette
-----------------
Craig D. Collette
President and
Chief Executive Officer
Howard J. Stanke
----------------
Howard J. Stanke
Executive Vice President and
Chief Financial Officer
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 9
<MULTIPLIER> 1000
<CURRENCY> U.S.
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-START> JAN-01-1999
<PERIOD-END> SEP-30-1999
<EXCHANGE-RATE> 1
<CASH> 6,704
<INT-BEARING-DEPOSITS> 41,402
<FED-FUNDS-SOLD> 3,525
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 5,628
<INVESTMENTS-CARRYING> 13,088
<INVESTMENTS-MARKET> 12,855
<LOANS> 49,088
<ALLOWANCE> 659
<TOTAL-ASSETS> 80,439
<DEPOSITS> 71,102
<SHORT-TERM> 0
<LIABILITIES-OTHER> 475
<LONG-TERM> 0
0
0
<COMMON> 13,646
<OTHER-SE> 0
<TOTAL-LIABILITIES-AND-EQUITY> 80,439
<INTEREST-LOAN> 2,744
<INTEREST-INVEST> 768
<INTEREST-OTHER> 205
<INTEREST-TOTAL> 3,717
<INTEREST-DEPOSIT> 1,033
<INTEREST-EXPENSE> 1,033
<INTEREST-INCOME-NET> 2,684
<LOAN-LOSSES> 50
<SECURITIES-GAINS> (9)
<EXPENSE-OTHER> 2,758
<INCOME-PRETAX> 321
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<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 330
<EPS-BASIC> .09
<EPS-DILUTED> .09
<YIELD-ACTUAL> 6.93
<LOANS-NON> 0
<LOANS-PAST> 600
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 733
<CHARGE-OFFS> 187
<RECOVERIES> 113
<ALLOWANCE-CLOSE> 659
<ALLOWANCE-DOMESTIC> 659
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 659
</TABLE>
