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
For Quarter Ended September 30, 1997
Commission file number 2-87246
THE FARMERS BANCORP, FRANKFORT, INDIANA
(Exact name of registrant as specified in its charter)
INDIANA 35-1565713
(State of incorporation) (I.R.S. Employer
(Identification No.)
P.O. Box 129, Frankfort, Indiana
(Address of principal executive offices)
46041-0129
(Zip Code)
765-654-8731
(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, and (2) has been subject to
such filing requirements for the past 90 days.
Yes x No
Indicate the number of shares outstanding of each of the issuer's
classes of common stock, as of the latest practicable date.
CLASS OUTSTANDING AT SEPTEMBER 30, 1997
common stock, no par value 1,154,116
Page 1 of 15
FORM 10-Q
INDEX
Part I. Financial Information: Page
Item 1. Financial Statements:
Consolidated Statements of Condition 3
Consolidated Statements of Income 4
Consolidated Statements of Changes in
Stockholders' Equity 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 8-13
Part II. Other Information:
Item 1. Legal Proceedings 14
Item 2. Changes in Securities 14
Item 3. Defaults upon Senior Securities 14
Item 4. Submission of Matters to a Vote of Security Holders 14
Item 5. Other Information 14
Item 6. Exhibits and Reports on Form 8-K 14
Signatures 15
Page 2 of 15<PAGE>
PART I, FINANCIAL INFORMATION
ITEM 1: FINANCIAL STATEMENT
THE FARMERS BANCORP
CONSOLIDATED STATEMENTS OF CONDITION
(Dollars in Thousands)
ASSETS Sept 30 June 30
1997 1997
-----------------------
Cash and due from banks 10079 7591
Available-for-sale securities 11994 11374
Held-to-maturity securities 18559 20328
Loans held for sale 354 0
Total loans 210148 200824
Allowance for loan losses -3392 -3232
-----------------------
Net loans 206756 197592
Premises and equipment 5242 5325
Restricted stock, at cost 1066 1013
Accrued income and other assets 8792 8521
-----------------------
Total Assets 262842 251744
=======================
LIABILITIES
Deposits
Non-interest bearing deposits 26961 24663
Interest-bearing deposits 178127 177944
-----------------------
Total Deposits 205088 202607
Federal Funds purchased 6800 0
Short-term borrowings 12874 11985
Other borrowings 9244 7839
Accrued expenses and other liabilities 2696 3837
-----------------------
Total Liabilities 236702 226268
SHAREHOLDERS' EQUITY
Common stock, (no par value-2,400,000 shares authorized
and 1,154,116 shares issued and outstanding) 2885 2885
Additional paid-in capital 5101 5101
Retained earnings 18143 17501
Unrealized gain/loss on available-for-sale
securities (net of tax) 11 (11)
-----------------------
Total Shareholders' Equity 26140 25476
-----------------------
Total Liabilities & Shareholders' Equity 262842 251744
=======================
See accompanying notes to consolidated financial statements
Page 3 of 15
PART I, FINANCIAL INFORMATION
ITEM 1: FINANCIAL STATEMENT
THE FARMERS BANCORP
CONSOLIDATED STATEMENTS OF INCOME
(Dollars in Thousands except Per Share Amounts)
Three Months Ended
September 30
1997 1996
---------------------
Interest Income
Loans, including related fees 4848 4151
Securities
Taxable 407 530
Tax exempt 96 128
Other 0 25
---------------------
Total Interest Income 5351 4834
Interest Expense ---------------------
Deposits 2060 1910
Short-term borrowings 214 125
Other borrowings 128 88
---------------------
Total Interest Expense 2402 2123
---------------------
Net Interest Income 2949 2711
Provision for loan losses 150 120
---------------------
2799 2591
Other income ---------------------
Trust fees 84 65
Service charge income 207 196
Other 216 163
---------------------
Total Other Income 507 424
Other expenses ---------------------
Salaries and employee benefits 996 959
Occupancy 147 143
Equipment 168 143
Other 536 494
---------------------
Total Other Expense 1847 1739
---------------------
Income Before Income Tax 1459 1276
Less: Income taxes 528 459
---------------------
Net Income 931 817
Per share data: (Note 3) =====================
Net income per share .81 .71
=====================
Dividends per share .25 .21
=====================
See accompanying notes to consolidated financial statements
Page 4 of 15
PART I, FINANCIAL INFORMATION
ITEM 1: FINANCIAL STATEMENT
THE FARMERS BANCORP
CONSOLIDATED STATEMENTS OF CHANGES
IN SHAREHOLDERS' EQUITY
(Dollars in Thousands)
1997 1996
-------------------
Balance - June 30 25476 24127
Net Income 931 817
Dividends (289) (242)
Change in net unrealized
gain/(loss) on available-
for-sale securities 22 39
-------------------
Balance - September 30 26140 24741
===================
See accompanying notes to consolidated financial statements
Page 5 of 15
PART I, FINANCIAL INFORMATION
ITEM I: FINANCIAL STATEMENT
THE FARMERS BANCORP
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in Thousands)
Three Months Ended
September 30
CASH FLOWS FROM OPERATING ACTIVITIES 1997 1996
Net income 931 817
Adjustments to reconcile net income to net cash
from operating activities (1117) 456
---------------
Net cash from operating activities (186) 1273
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from maturities and principal repayments on
available-for-sale securities 166 1524
Purchases of available-for-sale securities (750) -0-
Proceeds from maturities and principal repayments
on investment securities 2669 849
Purchase of investment securities (900) -0-
Loans made to customers, net of principal
collections thereon (9668) (10243)
Net change in interest-bearing balances with
financial institutions -0- -0-
Purchase of life insurance policies -0- -0-
Property and equipment expenditures (76) (231)
Purchase of restricted stock (53) -0-
---------------
Net cash from investing activities (8612) (8101)
CASH FLOWS FROM FINANCING ACTIVITIES
Net increase/(decrease) in deposits 2481 (899)
Net increase/(decrease) in short term borrowings 7689 2770
Proceeds from other borrowings 1500 3000
Repayment of other borrowings (95) (88)
Dividends paid (289) (242)
---------------
Net cash from financing activities 11286 4541
---------------
NET CHANGE IN CASH AND CASH EQUIVALENTS 2488 (2287)
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 7591 9889
---------------
CASH AND CASH EQUIVALENTS AT END OF YEAR 10079 7602
===============
See accompanying notes to consolidated financial statements
Page 6 of 15
PART I FINANCIAL INFORMATION
ITEM 1: FINANCIAL STATEMENTS
THE FARMERS BANCORP
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
September 30, 1997
NOTE 1- ACCOUNTING POLICIES
Except for required accounting changes (see Note 2), the significant
accounting policies followed by The Farmers Bancorp, Frankfort, Indiana
("Bancorp") and its consolidated subsidiary, The Farmers Bank,
Frankfort, Indiana ("Bank") 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 presentation of the results for the periods
reported have been included in the accompanying unaudited consolidated
financial statements and all such adjustments are of a normal recurring
nature.
NOTE 2 - ACCOUNTING CHANGES
Financial Accounting Standard No. 125, "Accounting for Transfers and
Servicing of Financial Assets and Extinguishment of Liabilities" revised
the accounting for transfers of financial assets, such as loans and
securities, and for distinguishing between sales and secured borrowings.
It was effective for certain transactions occurring after December 31,
1996 and for others in 1998. The impact of partial adoption during 1997
was not significant and management does not expect that full adoption of
the Standard will significantly impact the Company's financial position
or results of operations.
NOTE 3 - PER SHARE DATA
Earnings per share are computed based upon the weighted average number
of shares outstanding which was 1,154,116 for all periods presented.
Page 7 of 15
PART I FINANCIAL INFORMATION
ITEM 2: MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
THE FARMERS BANCORP
September 30, 1997
FINANCIAL CONDITION:
Total assets increased 4.41 percent from June 30, 1997 to September 30,
1997 and totaled $262,842,000 at period end. During the quarter ended
September 30, 1997 total loans increased $9,324,000 (4.64 percent)
funded primarily by increased deposits and borrowings. The total
amortized cost of securities decreased $1,185,000 or 3.74 percent. The
following table presents, in thousands, the amortized cost and fair
value of securities:
September 30, 1997 Amortized Gross Gross Fair
Cost Unrealized Gains Unrealized Losses Value
Held-to-maturity
Securities $18,559 $255 ($29) $18,785
Available-for-sale
Securities 11,976 37 (19) 11,994
JUNE 30, 1997
Held-to-maturity
Securities 20,328 208 (63) 20,473
Available-for-sale
Securities 11,392 32 (50) 11,374
The Bank utilizes several funding sources to fund increasing loan
demand. Short-term borrowings consist of retail repurchase agreements,
and Federal Reserve Seasonal Agricultural line of credit totaling
$7,874,000 and $5,000,000 respectively at September 30, 1997. Federal
Funds purchased consist of over-night borrowings from Bank One, National
City Bank and NBD and totaled $6,800,000 at period end.
Other borrowings increased to $9,244,000 and consist primarily of
Federal Home Loan Bank advances which were $8,924,000 at September 30,
1997. These advances were matched to specific loan pools for comparable
terms and at a favorable interest rate spread to the Bank. The advances
require monthly interest payments and periodic principal reductions, and
have a final maturity of February, 2010. The Bank utilizes this source
of credit to maintain liquidity, as well as to fund specific loans.
Page 8 of 15
RESULTS OF OPERATIONS:
The Bancorp reported net income, for the first three months of the
fiscal year ending June 30, 1998 of $931,000, as compared to $817,000
for the prior year. Earnings per share were $.81 and $.71,
respectively. Increased net interest income and other income more than
offset increased other expense and income taxes.
Total interest income was $5,351,000 for the three months ended
September 30, 1997, compared to $4,834,000 for the three months ended
September 30, 1996, an increase of $517,000 or 10.70 percent. This
increase resulted from a $697,000 (16.79 percent) increase in interest
and fees on loans offset by a $180,000 decrease in interest income on
securities and short-term investments. Loans, including those held for
sale, increased $26,225,000, or 14.23 percent, from September 30, 1996
to September 30, 1997. Total interest expense was $2,402,000 for the
three months ended September 30, 1997, compared to $2,123,000 for the
same period in 1996, an increase of $279,000, or 13.14 percent. Total
interest bearing deposits and repurchase agreements increased
$7,290,000, or 4.08 percent from September 30, 1996 to September 30,
1997. Interest bearing transaction account balances decreased
$3,042,000 from September 30, 1996 to September 30, 1997, and time
deposits outstanding increased $14,080,000 for the same period.
Repurchase agreements decreased $3,748,000 or 32.25 percent, from
September 30, 1996 to September 30, 1997.
Average earning assets increased to $237,364,000 during the three months
ended September 30, 1997. This represents an approximate increase of
6.76 percent compared to $222,324,000 for the three months ended
September 30, 1996. The tax-equivalent yield on average earning assets
was 9.05 percent for the three months ended September 30, 1997, compared
to 8.78 percent for the three months ended September 30, 1996. Total
interest expense to average interest bearing liabilities was 4.73
percent for the three months ended September 30, 1997, compared to 4.46
percent for the three months ended September 30, 1996. This results in
a tax-equivalent net interest margin (net tax-equivalent interest income
divided by average earning assets) of 5.04 percent and 4.98 percent for
the three months ended September 30, 1997 and 1996, respectively. The
increase in average earning assets and the increase in margin resulted
in net interest income increasing by $238,000, or 8.78 percent. The
increase in interest margin is a trend that management anticipates will
level off and remain stable.
Page 9 of 15
RESULTS OF OPERATIONS (cont.)
The provision for loan losses totaled $150,000 for the three months
ended September 30, 1997 compared to $120,000 for the three months ended
September 30, 1996. Net chargeoffs (recoveries) for the three months
ended September 30, 1997 totaled $(10,000). Net chargeoffs (recoveries)
by loan type aggregated $(19,000) for commercial and agricultural loans,
$13,000 for consumer loans, $(5,000) for real estate loans, and $1,000
for credit card loans. On September 30, 1997, the allowance for loan
losses totaled $3,392,000 or 1.61 percent of loans, compared to
$3,232,000 or 1.61 percent of loans on June 30, 1997, and $2,847,000 or
1.54 percent of loans at September 30, 1996. The provision is
determined by management based upon a detailed review of the risk
factors affecting the loan portfolio, including changes in the
portfolio's size and mix, past loan loss experience, and the financial
condition of borrowers in the prevailing economic environment. Reserves
are allocated based upon the Bank's historical loss experience, adjusted
for recent loss trends, the economic environment, current levels of
non-performing loans, and management's expectations for the future.
The Bancorp's Loan Review function develops a quarterly "watch list"
report representing loans with more than a normal degree of risk. These
credits are reviewed and, as needed, specific allocations of the reserve
are made for specific loans to provide for potential loss exposure.
Impaired loans are also identified and evaluated as part of that
analysis. The amount of the reserve allocated to impaired loans is
determined based upon the present value of estimated future cash flows
or the present value of the collateral securing the loans. In general,
all loans included on the watch list are evaluated for impairment.
However, small dollar consumer and residential mortgage loans are
evaluated collectively as opposed to individually for impairment. At
September 30, 1997, management designated $1,225,000 of loans as
impaired and allocated $200,000 of the allowance to such loans compared
to $1,300,000 of loans and $125,000 of the allowance at June 30, 1997.
A summary of management's calculation of the adequacy of the Bank's loan
loss reserve is presented below for both September 30, 1997 and
September 30, 1996.
September 30,
1997 1996
Specific Allocations:
Allocated to impaired loans $ 200,000 $ 125,000
Allocated to other watch list loans 459,000 690,000
Allocated to types of loans 119,000 358,000
---------- ----------
778,000 1,173,000
Unallocated 2,614,000 1,674,000
---------- ----------
ACTUAL BALANCE OF RESERVE $3,392,000 $2,847,000
========== ==========
Page 10 of 15
RESULTS OF OPERATIONS (cont.)
The 1997 performance of the Bancorp's agricultural customers followed
historical trends and was not adversely affected by the long planting
season or dry weather conditions experienced last year. Management
continues to monitor and evaluate individual credits to forecast
expected levels of loan repayment, collateral values and attendant loss
exposure.
Non-performing loans, consisting of non-accrual loans, restructured
loans and those over 90 days past due, increased to $2,221,000 at
September 30, 1997, compared to $2,098,000 at June 30, 1997.
Non-performing loans at September 30, 1997 represented 1.05 percent of
total loans and 65.48 percent of the Reserve for Loan Losses. The
following table shows the composition of non-performing loans at both
period ends.
September 30, June 30,
1997 1997
Real Estate Loans $ 583,000 (2) $ 432,000
Consumer Loans 194,000 206,000
Commercial and Agricultural 1,444,000 (3) 1,460,000(1)
---------- ----------
$2,221,000 $2,098,000
========== ==========
Notes:
1. Includes three agricultural loans totaling $443,000 on non-
accrual, three commercial operating loans totaling $284,000
on non-accrual, two commercial loans past due more than 90
days totaling $153,000, three restructured agricultural loans
totaling $419,000, and two restructured commercial loans in
the amount of $161,000.
2. Includes four residential mortgages totaling $349,000 past
due more than 90 days, two construction mortgages totaling
$121,000 past due more than 90 days, and one residential
mortgage loan totaling $113,000 on non-accrual.
3. Includes four agricultural loans totaling $412,000 on non-accrual,
three commercial loans totaling $299,000 on non-accrual, two
commercial loans past due more than 90 days in the amount of
$153,000, three restructured agricultural loans totaling $419,000,
and two commercial restructured loans in the amount of $161,000.
The nonaccrual loans are deemed to be impaired, as defined by FAS
No. 114, whereas the restructured loans were recast prior to June
30, 1995, are currently performing as agreed, and are not
considered to be impaired loans.
Page 11 of 15
RESULTS OF OPERATIONS (cont.)
Non-interest income increased 19.58 percent or $83,000 to $507,000 for
the three months ended September 30, 1997, compared to $424,000 for the
three months ended September 30, 1996. Other income, consisting of
gains on the sale of mortgage loans, commissions on credit life
insurance sales, safe deposit box rent, and other miscellaneous income
increased 32.52 percent or $53,000 to $216,000 for the three months
ended September 30, 1997 compared to $163,000 for the three months ended
September 30, 1996. This increase is primarily attributable to
commission income received for a new check card program, increased
income recognized as the cash surrender value of insurance policies
owned by the Bank increases and increased commission income earned on
credit life insurance policies sold by the Bank.
Non-interest expense increased 6.21 percent or $108,000 and totaled
$1,847,000 for the three months ended September 30, 1997, compared to
$1,739,000 for the three months ended September 30, 1996. Equipment
expense increased $25,000, or 17.48 percent to total $168,000 for the
three months ended September 30, 1997 compared to $143,000 for the same
period in 1996. Other operating expense, consisting entirely of
overhead expenses increased $42,000 or 8.50 percent and total $536,000
for the three months ended September 30, 1997 compared to $494,000 for
the three months ended September 30, 1996.
LIQUIDITY:
Bancorp's liquidity is a measurement of its ability to raise cash when
needed without an adverse impact on profits. Asset liquidity is
provided primarily by the maturity of loans. Additionally Bancorp
considers all securities maturing or having a call feature within one
year, time deposits in other banks, federal funds sold, term funds sold,
and banker's acceptances to be sources of asset liquidity. All of these
sources combined totaled $10,476,000 at September 30, 1997. In
addition, the Bancorp has $354,000 in mortgage loans being held for sale
into the secondary market. The factors which have and will continue to
affect the general liquidity of the Bancorp are increasing loan demand
and the continued offering of a deposit instrument based primarily on
money market rates. All of these factors have contributed to the
liquidity ratio (net cash, short term investments and other marketable
assets to volatile liabilities) of 14.56 percent on September 30, 1997.
The level at September 30, 1997 is deemed by management to be adequate
for funding purposes. In addition the Bancorp has wholesale funding
sources with Federal Home Loan Bank and the Federal Reserve. At
September 30, 1997 Bancorp had unfunded loan commitments of $40,755,000,
primarily available balances on customer lines of credit, and
outstanding letters of credit of $1,510,000. However, management
expects many of these will expire without being used. In addition, the
Bancorp intends to continue the sale of newly originated fixed rate
residential mortgages into the secondary market for the foreseeable
future.
Page 12 of 15
LIQUIDITY: (cont.)
The asset/liability committee continues to review the matching of loan
demand with deposits, and maturities of assets and liabilities to help
ensure the level of liquidity remains satisfactory. The asset/liability
committee has managed the rate sensitive assets and liabilities during
the first three months of fiscal 1997, and at September 30, 1997, the
Bancorp's one year gap position was slightly negative.
CAPITAL RESOURCES:
The Bank and Bancorp are subject to regulations established by their
respective regulators, which require the maintenance of established
levels of capital and, as a result, limit the amount of dividends which
may be paid by the companies. The ability of the Bancorp to pay
dividends depends primarily upon the ability of the Bank to pay
dividends to the Bancorp. The Bank is regulated by the Indiana
Department of Financial Institutions and the FDIC, while the Bancorp is
subject to the regulations issued by the Federal Reserve Board. These
regulations establish minimum levels of Tier I (as defined) capital to
total assets (the leverage ratio) and minimum levels of Tier I and Total
Capital (as defined) to risk-based assets. Also, FDIC regulations
establish various levels of capital compliance. Under these
regulations, a "well capitalized" financial institution must maintain a
leverage ratio of at least 5 percent, a Tier I risk-based capital ratio
of at least 6 percent and a total risk-based capital ratio of at least
10 percent. Institutions which do not meet these guidelines are subject
to higher deposit insurance assessments and, in certain cases,
operational restrictions. Presented below are the Bancorp's actual
capital ratios as of September 30, 1997:
Tier I Capital $26,129,000
Total Capital $28,868,000
Risk Weighted Assets $218,475,000
Leverage Ratio 10.26%
Risk-based Capital; Tier I 11.96%
Total Risk-based Capital 13.21%
On October 13, 1997, the Bancorp declared a $.27 per share quarterly
dividend totaling $312,000 payable November 14, 1997 to shareholders of
record as of October 27, 1997. The book value of common stock on
September 30, 1997 was $22.65 based on 1,154,116 shares outstanding.
Page 13 of 15
PART II OTHER INFORMATION
THE FARMERS BANCORP
September 30, 1997
Item 1. LEGAL PROCEEDINGS
The Bancorp is not a party to any material pending legal proceedings
before any court, regulatory authority, administrative agency or other
tribunal. Further, the Bancorp is not aware of the threat of any such
proceeding.
As a part of its ordinary course of business, the Bank is a party to
several lawsuits involving a variety of claims and in the collection of
delinquent accounts. All such litigation is incidental to the Bank's
business. No litigation is pending or, to the Bank's knowledge,
threatened in which the Bank faces potential loss or exposure which
would have a material adverse effect upon the financial condition of the
Bank. The Bancorp and the Bank are not involved in any administrative
or judicial proceedings arising under any Federal, State or Local
provisions which have been enacted or adopted to regulate the discharge
of materials into the environment or otherwise relating to the
protection of the environment.
Item 2. CHANGES IN SECURITIES
None to be reported.
Item 3. DEFAULTS UPON SENIOR SECURITIES
None to be reported.
Item 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
The annual meeting of the shareholders of the Farmers Bancorp was held
on Thursday September 18, 1997. At that meeting the following directors
were elected for three years: Ralph M. Butler, Rawl V. Ransom, Stephen
G. Rothenberger and R. Kent Ryan Jr. The four join the following
holdover directors: Fred K Agnew, Joe C. Doan, Joseph V Lahrman Jack W.
Ransom, Tom Rohrabaugh and Stanley K. Smith. Of the 1,154,116 shares
outstanding, 934,617 shares were voted at the annual meeting in
connection with the election of directors as follows: 929,689 for; 0
against; with 4,928 abstentions.
Item 5. OTHER INFORMATION
None to be reported.
Item 6. EXHIBITS AND REPORTS ON FORM 8-K
A. Exhibit #27 - Financial data statement as of September 30, 1997.
B. Form 8-K - None to be reported.
Page 14 of 15
PART II OTHER INFORMATION
THE FARMERS BANCORP
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.
THE FARMERS BANCORP
(Registrant)
Date: November 12, 1997 -------------------------------
Tom Rohrabaugh, President
(Principal Executive Officer)
Date: November 12, 1997 --------------------------------
Karen I. Miller
Vice President and Treasurer
(Principal Financial and
Accounting Officer)
Page 15 of 15
<TABLE> <S> <C>
<ARTICLE> 9
<CIK> 0000730726
<NAME> THE FARMERS BANCOPR
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> JUN-30-1998
<PERIOD-START> JUL-01-1997
<PERIOD-END> SEP-30-1997
<CASH> 10079
<INT-BEARING-DEPOSITS> 0
<FED-FUNDS-SOLD> 0
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 11994
<INVESTMENTS-CARRYING> 18559
<INVESTMENTS-MARKET> 18786
<LOANS> 210502
<ALLOWANCE> 3392
<TOTAL-ASSETS> 262842
<DEPOSITS> 205088
<SHORT-TERM> 19674
<LIABILITIES-OTHER> 11940
<LONG-TERM> 0
0
0
<COMMON> 2885
<OTHER-SE> 23255
<TOTAL-LIABILITIES-AND-EQUITY> 262842
<INTEREST-LOAN> 4848
<INTEREST-INVEST> 503
<INTEREST-OTHER> 0
<INTEREST-TOTAL> 5351
<INTEREST-DEPOSIT> 2060
<INTEREST-EXPENSE> 2402
<INTEREST-INCOME-NET> 2949
<LOAN-LOSSES> 150
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 1847
<INCOME-PRETAX> 1459
<INCOME-PRE-EXTRAORDINARY> 1459
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 931
<EPS-PRIMARY> .81
<EPS-DILUTED> .81
<YIELD-ACTUAL> 9.05
<LOANS-NON> 933
<LOANS-PAST> 708
<LOANS-TROUBLED> 580
<LOANS-PROBLEM> 212
<ALLOWANCE-OPEN> 3232
<CHARGE-OFFS> 46
<RECOVERIES> 56
<ALLOWANCE-CLOSE> 3392
<ALLOWANCE-DOMESTIC> 778
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 2614
</TABLE>
