FORM 10-Q - QUARTERLY REPORT UNDER SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
(As last amended in Rel. No. 34-26589, eff. 4/12/93.)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 1998
Commission file number: 0-12668
Hills Bancorporation
Incorporated in Iowa I.R.S. Employer Identification
No. 42-1208067
131 MAIN STREET, HILLS, IOWA
Telephone number: (319) 679-2291
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.
[X] Yes [ ] No
APPLICABLE ONLY TO CORPORATE ISSUERS:
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practical date.
SHARES OUTSTANDING
CLASS AT July 31, 1998
- -------------------------- ------------------
Common Stock, no par value 1,467,754
<PAGE>
HILLS BANCORPORATION
Index to Form 10-Q
Part I
FINANCIAL INFORMATION
Page
Number
Item 1. Financial Statements
Consolidated balance sheets, June 30, 1998 (unaudited)
and December 31, 1997
Consolidated statements of income, (unaudited) for three and six
months ended June 30, 1998 and 1997
Consolidated statements of comprehensive income, (unaudited) for
three and six months ended June 30, 1998 and 1997.
Consolidated statements of stockholders' equity, (unaudited)
for six months ended June 30, 1998 and 1997
Consolidated statements of cash flows (unaudited) for six
months ended June 30, 1998 and 1997
Notes to consolidated financial statements
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 senior securities
Item 4. Submission of matters to vote of security holders
Item 5. Other information
Item 6. Exhibits and reports on Form 8-K
COMPUTATION OF EARNINGS PER SHARE
SIGNATURES
<PAGE>
HILLS BANCORPORATION
CONSOLIDATED BALANCE SHEETS
(In Thousands)
<TABLE>
June 30, 1998
Unaudited December 31, 1997*
--------------------------------
<S> <C> <C>
ASSETS
Cash and due from banks .............................. $ 18,591 $ 15,508
Investment securities:
Available for sale (amortized cost
June 30, 1998 $109,492;
December 31, 1997 $108,718) ..................... 110,322 109,486
Held to maturity (fair value
June 30, 1998 $22,539;
December 31, 1997 $24,230) ...................... 22,191 23,840
Stock of Federal Home Bank ........................ 4,347 4,738
Federal funds sold ................................... 17,131 2,447
Loans, net ........................................... 438,129 422,761
Property and equipment, net .......................... 10,547 9,437
Accrued interest receivable .......................... 6,938 5,441
Deferred income taxes, net ........................... 1,832 1,859
Other assets ......................................... 7,070 7,585
-------- --------
$637,098 $603,102
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES
Noninterest-bearing deposits ......................... $ 54,617 $ 52,174
Interest-bearing deposits ............................ 436,145 427,596
-------- --------
Total deposits .................................... $490,762 $479,770
Federal funds purchased and securities
sold under agreements to repurchase ............... 5,339 9,008
Federal Home Loan Bank notes ......................... 75,764 50,764
Accrued interest payable ............................. 1,964 2,060
Other liabilities .................................... 2,235 2,318
-------- --------
$576,064 $543,920
-------- --------
REDEEMABLE COMMON STOCK HELD BY
EMPLOYEE STOCK OWNERSHIP PLAN
(ESOP) ............................................ $ 8,482 $ 7,682
-------- --------
STOCKHOLDERS' EQUITY
Capital stock, common, no par value;
authorized 10,000,000 shares;
issued June 30, 1998 and December 31,
1997 - 1,467,754 shares ........................... $ 9,070 $ 9,070
Retained earnings .................................... 51,441 49,627
Accumulated other comprehensive income,
unrealized gains on investment securities, net .... 523 485
-------- --------
$ 61,034 $ 59,182
Less, maximum cash obligation related to
ESOP shares ....................................... 8,482 7,682
-------- --------
$ 52,552 $ 51,500
-------- --------
$637,098 $603,102
======== ========
<FN>
* Derived from audited financial statements.
</FN>
</TABLE>
See Notes to Financial Statements.
<PAGE>
HILLS BANCORPORATION
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
Three and Six Months Ended June 30, 1998 and 1997
(In Thousands, Except Per Share Data)
<TABLE>
Three Months Ended Six Months Ended
June 30 June 30
-------------------------------------
1998 1997 1998 1997
------------------ -----------------
<S> <C> <C> <C> <C>
Interest Income:
Interest and fees on loans ........................ $ 9,367 $ 8,515 $18,542 $16,556
Interest on investment securities:
Taxable ......................................... 1,686 1,693 3,366 3,366
Non-taxable ..................................... 330 298 665 592
Interest on federal funds sold .................... 296 39 543 80
------- ------- ------- -------
Total interest income ............................. $11,679 $10,545 $23,116 $20,594
------- ------- ------- -------
Interest Expense:
Interest on deposits .............................. $ 5,042 $ 4,719 $10,068 $ 9,322
Interest on securities sold under
agreements to repurchase ............................. 81 109 169 198
Interest on FHLB borrowings ....................... 1,146 730 2,171 1,260
------- ------- ------- -------
Total interest expense ............................ $ 6,269 $ 5,558 $12,408 $10,780
------- ------- ------- -------
Net interest income ............................... $ 5,410 $ 4,987 $10,708 $ 9,814
Provision for loan losses ............................ 204 395 408 590
------- ------- ------- -------
Net interest income after provision
for loan losses ...................................... $ 5,206 $ 4,592 $10,300 $ 9,224
------- ------- ------- -------
Other income:
Net gains (losses) on sale of investment securities $ -- $ 1,054 $ -- $ 1,054
Loan origination fees ............................. 182 61 334 120
Trust fees ........................................ 406 321 863 625
Deposit account charges and fees .................. 459 470 893 903
Other fees and charges ............................ 358 300 731 629
------- ------- ------- -------
$ 1,405 $ 2,206 $ 2,821 $ 3,331
------- ------- ------- -------
Other expenses:
Salaries and employee benefits .................... $ 2,168 $ 1,797 $ 4,233 $ 3,587
Occupancy ......................................... 305 241 575 487
Furniture and equipment ........................... 418 343 828 670
Office supplies and postage ....................... 307 187 589 1,092
Contributions ..................................... 8 1,073 8 418
Other operating ................................... 957 867 1,830 1,714
------- ------- ------- -------
$ 4,163 $ 4,508 $ 8,063 $ 7,968
------- ------- ------- -------
Income before income taxes ........................ $ 2,448 $ 2,290 $ 5,058 $ 4,587
Federal and state income taxes ....................... 715 355 1,481 1,041
------- ------- ------- -------
Net income ........................................ $ 1,733 $ 1,935 $ 3,577 $ 3,546
======= ======= ======= =======
Earning per common share:
Basic ........................................... $ 1.18 $ 1.32 $ 2.44 $ 2.42
Diluted ......................................... 1.16 1.31 2.40 2.40
</TABLE>
See Notes to Financial Statements
<PAGE>
HILLS BANCORPORATION
UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Three and Six Months Ended June 30, 1998 and 1997
(In Thousands, Except Per Share Data)
<TABLE>
Three Months Ended Six Months Ended
June 30 June 30
------------------ -----------------
1998 1997 1998 1997
----------------------------------------
<S> <C> <C> <C> <C>
Net Income ...................................... $ 1,733 $ 1,935 $ 3,577 $ 3,546
Other comprehensive income:
Unrealized gains (losses) on debt securities . (122) (692) 62 (912)
Income tax effect of unrealized gains (losses) 44 236 (24) 318
------- ------- ------- -------
Comprehensive Income ......................... $ 1,655 $ 1,479 $ 3,615 $ 2,952
======= ======= ======= =======
</TABLE>
<PAGE>
HILLS BANCORPORATION
UNAUDITED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
Six Months Ended June 30, 1998 and 1997
(In Thousands)
<TABLE>
Capital Retained Unrealized ESOP
Stock Earnings Gains (Losses) Obligations Total
-------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Balance, January 1, 1998 ........ $ 9,070 $49,627 $ 485 $(7,682) $51,500
Net income ...................... - - 3,577 - - - - 3,577
Change related to ESOP shares ... - - - - - - (800) (800)
Cash dividends ($1.20 per share). - - (1,763) - - - - (1,763)
Unrealized gains (losses) on debt
securities, net ............... - - - - 38 - - 38
-------------------------------------------------------
Balance, June 30, 1998 .......... $ 9,070 $51,441 $ 523 $(8,482) $52,552
=======================================================
Balance, January 1, 1997 ........ $ 8,996 $44,079 $ 676 $(6,416) $47,335
Exercise Stock Options
for 2,055 shares .............. 53 - - - - - - 53
Redemption of stock ............. (7) - - - - - - (7)
Net income ...................... - - 3,546 - - - - 3,546
Change related to ESOP shares ... - - - - - - (481) (481)
Cash dividends ($1.05 per share) - - (1,539) - - - - (1,539)
Unrealized gains (losses) on
debt securities, net .......... - - - - (594) - - (594)
-------------------------------------------------------
Balance, June 30, 1997 .......... $ 9,042 $46,086 $ 82 $(6,897) $48,313
=======================================================
</TABLE>
See Notes to Financial Statements.
<PAGE>
HILLS BANCORPORATION
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
Six Months Ended June 30, 1998 and 1997
(In Thousands)
<TABLE>
1998 1997
--------------------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net income ..................................................................... $ 3,577 $ 3,546
Adjustments to reconcile net income to
net cash provided by operating activities:
Depreciation ............................................................... 658 535
Provision for loan losses .................................................. 408 590
(Increase) decrease in accrued interest receivable ......................... (1,497) (512)
Amortization of bond discount .............................................. 139 189
(Increase) in other assets ................................................. 346 (337)
Amortization of intangibles ................................................ 172 171
Increase in accrued interest and other liabilities ......................... (179) 263
-------- --------
Net cash provided by operating activities .................................. $ 3,624 $ 4,445
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from maturities of investment
securities:
Available for sale ......................................................... $ 13,499 $ 8,801
Held to maturity ........................................................... 2,086 1,393
Purchase of investment securities:
Available for sale ......................................................... (14,459) (9,315)
Held to maturity ........................................................... - - - (3,393)
Federal funds sold, net ........................................................ (14,684) (605)
Loans made to customers, net of collections .................................... (15,776) (32,182)
Purchases of property and equipment ............................................ (1,768) (475)
-------- --------
Net cash (used in) investing activities .................................... $(31,102) $(35,776)
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES
Net increase (decrease) in deposits ........................................ $ 10,992 $ 15,583
Net increase (decrease) in fed funds purchased and
Securities sold under agreements to repurchase .......................... (3,669) 13
Borrowings from FHLB ....................................................... 40,000 20,000
Payments on FHLB notes ..................................................... (15,000) - - -
Stock options exercised .................................................... - - - 52
Redemption of common stock ................................................. - - - (7)
Dividends paid ............................................................. (1,762) (1,539)
-------- --------
Net cash provided by financing activities ............................... $ 30,561 $ 34,102
-------- --------
Increase in cash and due from banks ..................................... $ 3,083 $ 2,771
CASH AND DUE FROM BANKS
Beginning .................................................................. 15,508 15,036
-------- --------
Ending ..................................................................... $ 18,591 $ 17,807
======== ========
SUPPLEMENTAL DISCLOSURES Cash payments for:
Interest paid to depositors and others .................................. $ 10,164 $ 9,325
Interest paid on other obligations ...................................... 2,340 1,458
Non-cash financing transactions:
Increase in maximum cash obligation related
to ESOP shares ......................................................... 800 481
Net unrealized gains (losses) on debt securities ........................ 62 (913)
</TABLE>
See Notes to Financial Statements.
<PAGE>
HILLS BANCORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)
Note 1. Interim Financial Statements
Interim consolidated financial statements have not been examined by independent
public accountants, but include all adjustments (consisting only of normal
recurring accruals) which, in the opinion of management, are necessary for a
fair presentation of the results for these periods. The results of operation for
the interim periods are not necessarily indicative of the results for a full
year.
For purposes of reporting cash flows, cash and due from banks includes cash on
hand and amounts due from banks (including cash items in process of clearing).
Cash flows from demand deposits, NOW accounts, savings accounts, and federal
funds purchased and sold are reported net since their original maturities are
less than three months. Cash flows from loans and time deposits are presented as
net increases or decreases.
Note 2. Loans
The following tables set forth the composition of loans and the allowance for
loan losses:
(In thousands)
June 30
-------------------------
1998 1997
-------------------------
Agricultural ................................. $ 28,881 $ 24,630
Commercial and financial ..................... 34,376 31,101
Real estate, construction .................... 18,618 11,530
Real estate, mortgage ........................ 328,229 306,149
Loans to individual .......................... 36,134 34,232
-------- --------
$446,238 $407,642
Less allowance for loan losses ............... 8,109 7,786
-------- --------
$438,129 $399,856
======== ========
Transactions in the allowance for loan losses are as follows:
(In thousands)
Six Months
ended June 30
------------------------
1998 1997
------------------------
Balance, beginning ........................... $ 8,010 $ 7,311
Provision charged to expense ............... 408 590
Net charge-offs ............................ (309) (115)
------- -------
Balance, ending .............................. $ 8,109 $ 7,786
======= =======
<PAGE>
The following summarizes the Company's nonaccrual, past due, restructured and
impaired loans:
(In thousands)
March 31
-----------------
1998 1997
------- -------
Nonaccrual .................................... $ - - $ - -
Accruing loans, past due 90 days or more ...... 1,065 870
Restructured loan ............................. - - - -
Impaired loans ................................ 7,309 6,807
Note 3. Changes in Accounting Policies
In June 1997, the FASB issued Statement #130, "Reporting Comprehensive Income",
and Statement #131, "Disclosures About Segments of an Enterprise and Related
Information". Statement #130 establishes standards for reporting comprehensive
income in financial statements. Statement #131 expands certain reporting and
disclosure requirements for segments from current standards. The Statements are
effective for the quarter ended March 31, 1998. The company has presented a
Statement of Comprehensive Income. Statement #131 has no effect on the interim
period financial statements.
<PAGE>
PART I, ITEM 2.
HILLS BANCORPORATION
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF THE FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The consolidated balance sheet of Hills Bancorporation as of June 30, 1998
reflects total assets of $637.1 million which is an increase of $34.0 million
from December 31, 1997. Net loans increased from $422.8 million to $438.1
million, which represents an increase of $15.3. Compared to one year ago, total
assets have increased from $576.8 million to $637.1 million for an increase of
$60.3 million. Also during this year, net loans increased $38.3 million to
$438.1 million as of June 30, 1998. The loan increases were primarily single
family residential loans in the Iowa City and Coralville area as lower rates
continued and a strong economy remains active. Federal funds sold increased
during the first half of 1998 by $14.7 million and have increased from June 30,
1997 to June 30, 1998 by $15.4 million. This increase is primarily excess funds
that will be used for loan commitments and other investments during the balance
of 1998. Also during the first six months of 1998 Hills Bank and Trust Company
took advantage of lower interest rates on four and five year advances available
from the Federal Home Loan Bank and borrowed a net $25 million since December
31, 1997 and a net $30 million since June 30, 1997. These advances are secured
by 1-4 family mortgage loans.
Total deposits, including federal funds purchased and securities sold under
agreements to repurchase, total $496.1 million at June 30, 1998 and this is an
increase of $7.3 million from the December 31, 1997 balances. Deposits and
securities sold under agreements to repurchase increased from $471.7 million at
June 30,1997 to $496.1 million at June 30, 1998, an increase of $24.4 million.
The largest increase on the liability side of the balance sheet is the net
increase discussed above in Federal Home Loan Bank notes. Asset-liability
management encompasses both the management of interest rate sensitivity and the
maintenance of adequate liquidity. Interest rate sensitivity management attempts
to provide the optimal level of net interest income while managing exposure to
risks associated with interest rate movements. Liquidity management involves
planning to meet anticipated funding needs. Management monitors the rate
sensitivity and liquidity positions on an on-going basis and, when necessary,
appropriate action is taken to minimize any adverse effects of rapid interest
rate movements or any unexpected liquidity concerns.
In January 1998, Hills Bancorporation paid a dividend of $1.20 per share, a
14.29% increase from the $1.05 paid in January 1997. The total dividend of
$1,762,000 is deducted form stockholders' equity and is reflected in the
resulting stockholders' equity as of June 30, 1998 of $52,552,000. Stockholders'
equity at June 30, 1998 and December 31, 1997 reflects an adjustment for
unrealized gain (losses) on debt securities, net of income taxes. The total
stockholders' equity of Hills Bancorporation before the reduction for the ESOP
shares as a percent of total assets is 9.58%. Under risk-based capital rules,
total capital is 15.04% of risk adjusted assets, compared to the current 8%
requirement.
Net income for the quarter ending June 30, 1998 was $1,733,000 and was down
$202,000 from the previous year's quarter. A significant other income item in
the second quarter of 1997 was the recognition of $1,054,000 on the sale of a
marketable equity security held by Hills Bancorporation. The equity security was
transferred to the Hills Bancorporation Foundation, a private charitable
foundation, organized exclusively for charitable and educational purposes. As a
result of the stock contribution, Hills Bancorporation received an income tax
savings of approximately $340,000 which was reflected as tax savings in the
federal and state income taxes expense for the second quarter of 1997. Other
income changes occurred in loan origination fees which increased $121,000 for
the three months ended June 30, 1998 from one year ago and $214,000 for the six
months ending June 30, 1998, compared to the same period in 1997. Trust fees
showed growth over last year with an $85,000 increase for the quarter and
$238,000 for the six months.
Other expenses, excluding the contribution discussed above increased $728,000
and $1,187,000 for the second quarter and the six months ended June 30, 1998
compared to the same periods in 1997. The major portion of this increase was
$371,000 increase in salaries and employee benefits as full-time equivalent
employees increased by twenty-seven due to the new banks added in 1996 and new
positions added at Hills Bank and Trust Company in various areas. All other
operating expenses are up $533,000 as a result of increases in marketing, other
professional fees, expenses relating to the new bank in Mount Vernon and other
data processing charges.
<PAGE>
Basic and diluted earnings per share for the three months ending June 30, 1998
were $1.18 and $1.16 in comparison to $1.32 and $1.31 for the quarter ending
June 30, 1997. The earnings per share for the six months ended June 30, 1998 and
June 30, 1997 were $2.44 and $2.42 for basic earnings per share and $2.40 for
diluted earnings per share for both periods present.
The Bank's principal sources of funds continues to be prepayment of loan
principal and current amortized loan payments. In addition, funds are provided
from current operations. All of the funds are used to fulfill loan commitments,
make short-term investments, and fund any deposit withdrawals needed. The
Company has no material commitments or plans which will materially affect its
liquidity or capital resources. The acquisition of property and equipment may be
in cash purchases, or they may be financed if favorable terms are available
<PAGE>
HILLS BANCORPORATION
PART II - OTHER INFORMATION
Item 1. Legal Proceedings
There are no material pending legal proceedings.
Item 2. Changes in Securities
There were no changes in securities.
Item 3. Defaults upon Senior Securities
Hills Bancorporation has no senior securities.
Item 4. Submission of Matters to a Vote of Security Holders
At the Annual Meeting held on April 20, 1998, the security holders
approved the election of Richard W. Oberman, Earl M. Yoder, and
Sheldon E. Yoder, D.V.M. to three-year terms to the Board of Directors
expiring at the 2001 Annual Meeting.
Item 5. Other Information
None
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibit
See exhibit II - Statement Re Computation of Earnings Per
Common Share
(b) Reports on Form 8-K
No reports on Form 8-K have been filed during the quarter
ended June 30, 1998.
<PAGE>
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 and thereunto duly authorized.
HILLS BANCORPORATION
(Registrant)
Date AUGUST 13, 1998
--------------------------- /s/ Dwight O. Seegmiller
-------------------------------------------
Dwight O. Seegmiller, President
(Duly authorized officer of the registrant)
/s/ James G. Pratt
-------------------------------------------
James G. Pratt, Treasurer
(Principal Financial Officer)
HILLS BANCORPORATION
EXHIBIT II
COMPUTATION OF EARNINGS PER COMMON SHARE
<TABLE>
Three Months Ended Six Months Ended
June 30 June 30
----------------------- -----------------------
1998 1997 1998 1997
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Weighted average number of shares outstanding (basic) .... 1,467,754 1,467,259 1,467,754 1,467,259
Weighted average of potential dilutive shares attributable
to stock options granted computed under the treasury stock
method ................................................... 20,563 13,674 21,931 12,940
---------- ---------- ---------- ----------
Weighted average number of shares (diluted) .............. 1,488,317 1,480,933 1,489,685 1,480,199
========== ========== ========== ==========
Earnings Per Share:
Net income (in thousands) ............................. $ 1,733 $ 1,935 $ 3,577 $ 3,546
========== ========== ========== ==========
Earnings per common share:
Basic ............................................... $ 1.18 $ 1.32 $ 2.44 $ 2.42
========== ========== ========== ==========
Diluted ............................................. 1.16 1.31 2.40 2.40
========== ========== ========== ==========
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 9
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE JUNE 30,
1998 10-Q OF HILLS BANCORPORATION AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE
TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> JUN-30-1998
<CASH> 18,591
<INT-BEARING-DEPOSITS> 0
<FED-FUNDS-SOLD> 17,131
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 110,322
<INVESTMENTS-CARRYING> 26,538
<INVESTMENTS-MARKET> 26,886
<LOANS> 446,238
<ALLOWANCE> 8,109
<TOTAL-ASSETS> 637,098
<DEPOSITS> 490,762
<SHORT-TERM> 17,339
<LIABILITIES-OTHER> 4,199
<LONG-TERM> 63,764
8,482
0
<COMMON> 9,070
<OTHER-SE> 43,482
<TOTAL-LIABILITIES-AND-EQUITY> 637,098
<INTEREST-LOAN> 18,542
<INTEREST-INVEST> 4,031
<INTEREST-OTHER> 543
<INTEREST-TOTAL> 23,116
<INTEREST-DEPOSIT> 10,068
<INTEREST-EXPENSE> 12,408
<INTEREST-INCOME-NET> 10,708
<LOAN-LOSSES> 408
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 8,063
<INCOME-PRETAX> 5,058
<INCOME-PRE-EXTRAORDINARY> 3,577
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 3,577
<EPS-PRIMARY> 2.44
<EPS-DILUTED> 2.40
<YIELD-ACTUAL> 0
<LOANS-NON> 0
<LOANS-PAST> 1,065
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 7,309
<ALLOWANCE-OPEN> 8,010
<CHARGE-OFFS> 309
<RECOVERIES> 0
<ALLOWANCE-CLOSE> 8,109
<ALLOWANCE-DOMESTIC> 8,109
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
