UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 10-QSB
Quarterly Report Under Section 13 or 15(d)
of the Securities Exchange Act of 1934
For Quarter Ended Commission File Number 0-13273
March 31, 1996
F & M BANK CORP.
Virginia 54-1280811
(State or Other Jurisdiction of (I.R.S. Employer
Incorporation or Organization) Identification No.)
Drawer F
Timberville, Virginia 22853
(540) 896-8941
(Registrant's Telephone Number, Including Area Code)
Indicate by check mark whether the registrant (1) filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act
of 1934 during the past 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to
such filing requirement for the past 90 days. Yes ..X. No ....
State the number of shares outstanding of each of the issuer's classes
of common equity, as of the latest practicable date.
Class Outstanding at March 31, 1996
Common Stock, par value - $5 814,288 shares
Page
F & M BANK CORP.
INDEX
Page
PART I FINANCIAL INFORMATION 2
Item 1. Financial Statements
Consolidated Statements of Income - Three Months
Ended March 31, 1996 and 1995 2
Consolidated Balance Sheets - March 31, 1996
and December 31, 1995 3
Consolidated Statements of Changes in Stockholders'
Equity - Three Months Ended March 31, 1996 and 1995 4
Consolidated Statements of Cash Flows - Three
Months Ended March 31, 1996 and 1995 5
Notes to Consolidated Financial Statements 6
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations 8
PART II OTHER INFORMATION 14
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. Exhibit and Reports on Form 8K 14
SIGNATURES 18
Page
Part I Financial Information
Item 1. Financial Statements
F & M BANK CORP.
CONSOLIDATED STATEMENTS OF INCOME
(In Thousands of Dollars)
Three Months Ended
March 31,
1996 1995
Interest Income
Interest and fees on loans $ 2,295 $ 1,927
Interest on federal funds sold 28 6
Interest on interest bearing deposits 7 4
Interest and dividends on investment
securities
Taxable 686 583
Nontaxable 9 17
Total Interest Income 3,025 2,537
Interest Expense
Interest on demand accounts 140 160
Interest on savings deposits 298 301
Interest on time deposits 759 451
Total interest on deposits 1,197 912
Interest on short-term debt 14 3
Interest on long-term debt 322 284
Total Interest Expense 1,533 1,199
Net Interest Income 1,492 1,338
Provision for Loan Losses 25 16
Net Interest Income after Provision
for Loan Losses 1,467 1,322
Noninterest Income
Service charges 58 60
Other 44 38
Security gains 172 152
Total Noninterest Income 274 250
Noninterest Expense
Salaries 371 364
Employee benefits 144 140
Occupancy expense 41 32
Equipment expense 67 43
FDIC insurance 8 55
Other 223 204
Total Noninterest Expense 854 838
Income before Income Taxes 887 734
Income Taxes 256 216
Net Income $ 631 $ 518
Per Share Data
Net Income $ .78 $ .64
Cash Dividends $ .20 $ .20
Equivalent Shares Outstanding 814,288 814,288
The accompanying notes are an integral part of these statements.
Page
F & M BANK CORP.
CONSOLIDATED BALANCE SHEETS
(In Thousands of Dollars)
March 31, December 31,
ASSETS 1996 1995
Cash and due from banks $ 2,645 $ 3,716
Federal funds sold 1,368 1,787
Interest bearing deposits in banks 51 82
Securities held to maturity (note 3) 27,826 26,910
Securities available for sale (note 3) 19,175 17,316
Other investments 1,460 1,462
Loans, net of unearned discount (note 4) 100,933 97,964
Less reserve for loan losses (note 5) (862) (863)
Net Loans 100,071 97,101
Bank premises and equipment 1,937 1,983
Interest receivable 1,322 1,264
Other assets 677 680
Total Assets $ 156,532 $ 152,301
LIABILITIES
Deposits
Noninterest bearing demand $ 11,133 $ 10,941
Interest bearing
Demand 20,297 20,243
Savings deposits 30,576 30,234
Time deposits 54,555 52,243
Total Deposits 116,561 113,661
Short-term debt 1,528 838
Long-term debt 19,691 19,418
Accrued expenses 1,374 1,286
Total Liabilities 139,154 135,203
STOCKHOLDERS' EQUITY
Common stock $5 par value, 814,288 shares
issued and outstanding 4,071 4,071
Surplus 747 747
Retained earnings 12,127 11,658
Unrealized gain on securities available
for sale 433 622
Total Stockholders' Equity 17,378 17,098
Total Liabilities and Stockholders' Equity $ 156,532 $ 152,301
The accompanying notes are an integral part of these statements.
Page
F & M BANK CORP.
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
(In Thousands of Dollars)
Three Months
Ended
March 31,
1996 1995
Balance, beginning of period $ 17,098 $ 14,896
Dividends declared (162) (162)
Change in unrealized gain (loss) on
securities available for sale (189) 291
Net income for period 631 518
Balance, end of period $ 17,378 $ 15,543
The accompanying notes are an integral part of these statements.
Page
F & M BANK CORP.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Thousands of Dollars)
Three Months
Ended
March 31,
1996 1995
Cash Flows from Operating Activities:
Net income $ 631 $ 518
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation 58 35
Amortization of security premiums 33 42
Provision for loan losses 25 16
Increase in interest receivable (58) (195)
Decrease in other assets 3 94
Increase in accrued expenses 200 450
Gain on security transactions (172) (152)
Losses on limited partnership investments 10
Net adjustments 99 290
Net Cash Provided by Operating Activities 730 808
Cash Flows from Investing Activities:
Purchase of investments available for sale (3,003) (819)
Proceeds from sales of investments
available for sale 874 1,174
Proceeds from maturity of investments
available for sale 130 1,054
Proceeds from maturity of investments
held to maturity 3,310 5,815
Purchase of investments held to maturity (4,256) (2,547)
Net increase in loans (2,995) (4,111)
Purchase of property and equipment (12) (334)
Increase in federal funds sold 419 (2,080)
Net decrease in interest bearing
bank deposits 31
Net Cash Used in Investing Activities (5,502) (1,848)
Cash Flows from Financing Activities:
Net increase in deposits 2,900 701
Net decrease in short-term borrowings 690 (455)
Cash dividends paid (162) (162)
Increase in long-term debt 1,000 1,000
Repayment of long-term debt (727) (510)
Net Cash Provided by Financing Activities 3,701 574
Net Decrease in Cash and Cash Equivalents (1,071) (466)
Cash and Cash Equivalents, Beginning of Period 3,716 2,921
Cash and Cash Equivalents, End of Period $ 2,645 $ 2,455
Supplemental Disclosure:
Cash paid for:
Interest expense $ 1,188 $ 1,165
Income taxes 55 10
The accompanying notes are an integral part of these statements.
Page
F & M BANK CORP.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1 ACCOUNTING PRINCIPLES:
The consolidated financial statements conform to generally
accepted accounting principles and to general industry
practices. In the opinion of management, the accompanying
unaudited consolidated financial statements contain all
adjustments (consisting of only normal recurring accruals)
necessary to present fairly the financial position as of March
31, 1996 and the results of operations for the three month
periods ended March 31, 1996 and March 31, 1995. The notes
included herein should be read in conjunction with the notes to
financial statements included in the 1995 annual report to
stockholders of the F & M Bank Corp.
NOTE 2 CHANGE IN ACCOUNTING PRINCIPLE:
Effective January 1, 1994, the Company adopted Statement of
Financial Accounting Standard No. 115, "Accounting For Certain
Investments in Debt and Equity Securities." The statement
requires that all investments in securities be classified as
either trading, available for sale or held to maturity. The
Company only invests in securities that are available for sale
or held to maturity. Those that are classified as available for
sale are carried on the balance sheet at their fair market value
and the unrecognized gain or loss is reflected as a component of
stockholders' equity. Such gains and losses are excluded from
earnings until realized. Those investments that are classified
as held to maturity are carried on the balance sheet at cost and
the gains or losses are recognized as income only when realized.
The adoption of this statement increased total stockholders'
equity by $757,000 as of January 1, 1994.
NOTE 3 INVESTMENT SECURITIES:
The amounts at which investment securities are carried in the
consolidated balance sheets and their approximate market values
at March 31, 1996 and December 31, 1995 follows:
1996 1995
Carrying Market Carrying Market
Value Value Value Value
Securities Held to Maturity
U. S. Treasury
and Agency
obligations $ 18,244 $ 18,217 $ 18,280 $ 18,290
State and municipal 720 718 476 476
Other securities 3,426 3,485 4,523 4,620
Mortgage-backed
securities 5,436 5,386 3,631 3,662
Total $ 27,826 $ 27,806 $ 26,910 $ 27,048
Page
F & M BANK CORP.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 3 INVESTMENT SECURITIES (CONTINUED):
1996 1995
Market Market
Value Cost Value Cost
Securities Available for Sale
U. S. Treasury
and Agency
obligations $ 3,031 $ 2,999 $ 3,028 $ 2,999
Equity securities 6,744 6,084 7,318 6,429
Mortgage-backed
securities 3,195 3,191 2,864 2,859
Other securities 6,205 6,206 4,106 4,032
Total $ 19,175 $ 18,480 $ 17,316 $ 16,319
NOTE 4 LOANS:
Loans outstanding are summarized as follows:
March 31, December 31,
1996 1995
Real Estate
Construction $ 2,723 $ 2,540
Mortgage 61,328 58,771
Commercial and agricultural 24,896 25,018
Installment 11,254 10,807
Credit cards 705 807
Other 27 21
Total $ 100,933 $ 97,964
NOTE 5 ALLOWANCE FOR LOAN LOSSES:
A summary of transactions in the allowance for loan losses
for the three months ended March 31, 1996 and 1995 follows:
1996 1995
Balance, beginning of period $ 863 $ 744
Provisions charged to operating expenses 25 16
Loan recoveries 2 2
Loan charge-offs (28) (6)
Balance, End of Period $ 862 $ 756
Page
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations
Overview
The financial condition of F & M Bank Corp. remained strong in the
first quarter of 1996. Annualized growth in total assets was 11.16% and
annualized growth in deposits was 10.08%. Net income for the first quarter
increased $113,743 or 21.81%. The increase in capital of 6.55% can be
attributed to the increase in net earnings for the quarter.
Results of Operations
The dollar amount of the tax equivalent, net interest margin
increased 11.26% in the first quarter of 1996 compared to the first quarter
of 1995. An increase in the cost of funds of (.40%) was partially offset
by an increase in the return on earning assets of (.13%). The increase in
net interest margin income is primarily attributable to an increase in net
earning assets (i.e., volume increases). A schedule of the net interest
margin for the first quarter of 1996 and 1995 is shown on page 12 as Table
I.
Noninterest income increased 9.60% in the first three months of 1996
compared to the first three months of 1995. This increase was due mainly
to an increase in security gains to $172,000 in 1996 compared to $152,000
in 1995.
Noninterest expenses increased only 1.91% in 1996 compared to 1995.
This small increase can be attributed to two factors. FDIC insurance
assessments decreased $47,000 due to decrease rates for well capitalized
institutions. Also, in 1995, there were additional expenses associated
with the opening of the Bridgewater office that were not incurred in 1996.
Financial Condition
Securities
The Company's securities portfolio is held to assist the Company in
liquidity and asset liability management. The securities portfolio
consists of investment securities (commonly referred to as "securities held
to maturity") and securities available for sale. Securities are classified
as investment securities when management has the intent and ability to hold
the securities to maturity. Investment securities are carried at amortized
cost. Securities available for sale include securities that may be sold in
response to general market fluctuations, general liquidity needs and other
similar factors. Securities available for sale are recorded at market
value. Unrealized holding gains and losses of available for sale
securities are excluded from earnings and reported (net of deferred income
taxes) as a separate component of shareholders' equity. As of March 31,
1996, the market value of all securities available for sale exceeded their
amortized cost by $696,547 ($432,943 after the consideration of income
taxes). This excess is the result of increases in the value of equity
securities held by the parent. Management has traditionally held debt
securities (regardless of classification) until maturity and thus it does
not expect the minor fluctuation in the value of the securities to have a
direct impact on earnings.
Page
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations (Continued)
Securities (Continued)
Investments in securities increased in the first quarter of 1996 as
deposit growth has been steady and some of this growth has been directed to
investments. The Company has invested in relatively short-term maturities
due to uncertainty in the direction of rates. This philosophy allows for
greater flexibility in an environment of rapidly changing rates and has
served the Company well over the years. Of the investments in securities
available for sale, 35% are invested in equities which are dividend
producing and subject to the dividend exclusion for taxation purposes. The
Company believes these investments render adequate current returns and have
the potential for future increases in value.
Loan Portfolio
The Company operates in an agriculturally dominated area which
includes the counties of Rockingham, Page and Shenandoah in the western
portion of Virginia. The Company does not make a significant number of
loans to borrowers outside its primary service area. The Company is very
active in local residential construction mortgages. The commercial lending
includes small and medium sized businesses within its service area.
The principal economic risk associated with the loan portfolio is the
ability of its borrowers to repay. The risk associated with real estate
and installment notes to individuals is based upon employment, the local
and national economics and consumer confidence. All of these affect the
ability of borrowers to repay indebtedness. The risk associated with
commercial lending is based on the strength of the local and national
economies. A large percentage of agricultural loans are made to poultry
growers. Poultry production in the Company's trade area showed moderate
growth in 1995, however, the forecast for 1996 is uncertain because of a
period of sustained high grain prices which has reduced income in the
industry. The Russian embargo on poultry imports was recently lifted which
should help increase the poultry industry's exports for 1996.
The first three months of 1996 saw continued strong loan demand as
loans grew at an annualized rate of 12.07%. Funding of the new loans was
made possible by increases in time deposits and retained income from
operations. Overall, management has been quite pleased with the loan
program and believes that loan growth will continue throughout 1996.
Nonperforming loans include nonaccrual loans, loans 90 days or more
past due and restructured loans. Nonaccrual loans are loans on which
interest accruals have been suspended or discontinued permanently.
Restructured loans are loans which have changed the original interest rate
or repayment terms due to financial hardship. Loans 90 days or more past
due totaled $320,000 at March 31, 1996 compared to $380,000 at December 31,
1995. The Company had no nonaccrual or restructured loans at March 31,
1996.
The Company did not have any loans that were considered impaired
under Statement of Financial Accounting Standards No. 114 and No. 118. The
Company does not foresee a material impact on operations as a result of
these statements.
Page
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations (Continued)
Allowance for Loan Losses
Management evaluates the loan portfolio in light of national and
local economic changes, changes in the nature and value of the portfolio
and industry standards. The Company's loan classification system, which
rates existing loans, provides the basis for adjusting the allowance for
loan loss. Management reviews these classification totals, along with
internally generated loan review reports, past due reports, historical loan
loss experience and individual borrower's financial health to determine the
necessary amount to be provided in the allowance for loan losses.
Management evaluates nonperforming loans relative to their collateral value
and makes the appropriate adjustments to the allowance for loan losses when
needed. Management believes, based on its review, that the Company has an
adequate allowance to absorb any losses in the loan portfolio.
The gross amount of charge-offs for the first three months of 1996
was $27,220 compared to $6,000 in the first quarter of 1995. The allowance
for loan losses was $862,000 at March 31, 1996 representing .85% of period
ending loans outstanding. The provision for loan losses for the first
three months of 1996 was $25,000 compared to $16,000 for the same period in
1995. The increased provisions reflects a lower rate of recoveries in 1996
and an increasing level of loans outstanding.
Deposits and Long-Term Debt
The Company's main source of funds is customer deposits received from
individuals, governmental entities and businesses located within the
Company's service area. Deposit accounts include demand deposits, savings,
money market and certificates of deposit.
Deposit growth was good in the first quarter of 1996 compared to the
first quarter of 1995. The Company realized annualized deposit growth of
10.20% in the first quarter of 1996. This increase can be attributed to
the continued strong deposit growth of the Bridgewater office which was
opened in April 1995.
Borrowings from the Federal Home Loan Bank of Atlanta (FHLB) continue
to be an important mechanism in funding real estate loan growth in the
area. The Bank borrows funds on a fixed rate basis and uses these
borrowings to fund loans on a fixed rate basis with repayments over a
fifteen year term. As an alternative, borrowers may opt for a twenty year
repayment term of which the first ten years have a fixed rate. This
program allows the Bank to match the maturity of its fixed rate real estate
portfolio with the maturity of its debt and thus reduce its exposure to
interest rate changes. Year-to-date borrowings totaled $1,000,000 in 1996
compared to repayments of $727,000 in this year.
Capital
The Company seeks to maintain a strong capital base to expand
facilities, promote public confidence, support current operations and grow
at a manageable level. As of March 31, 1996, the Company's total risk
based capital ratio was 17.63%, far above the regulatory minimum of 8.00%.
The ratio of total capital to total assets was 11.10% at March 31, 1996
which exceeds that of the Company's peers. Management anticipates
maintaining these capital levels throughout 1996.
Page
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations (Continued)
Liquidity
Liquidity is the ability to meet present and future obligations
through the management of maturing assets or use of additional liabilities.
Federal funds sold, loans and investments maturing within one year are the
primary source of liquid assets. Management feels its ability to manage
assets and liabilities will maintain the overall liquidity sufficient to
meet customers' needs on a continuing basis.
As a secondary source of funds, the Company's subsidiary bank
maintains lines of credit with correspondent financial institutions that
allow it to borrow funds on an overnight basis. In the past, these lines
have been utilized sparingly as bank deposits have been more than
sufficient to fund loan demands. The Company does not foresee any change
in this philosophy in the near future.
Interest Rate Sensitivity
Management of liquidity involves controlling the degree of interest
rate risk the Company is willing to accept. Interest rate risk is the risk
that interest sensitive liabilities will reprice at a faster rate than
interest sensitive assets. The Company estimates that the point at which
its cumulative repricing opportunities for assets and liabilities are equal
is about five years.
A summary of asset and liability repricing opportunities is shown on
page 13 as Table II.
Page
TABLE I
<TABLE>
F & M BANK CORP.
NET INTEREST MARGIN ANALYSIS
(Dollar Amounts in Thousands)
<CAPTION>
Three Months Ended Three Months Ended
March 31, 1996 March 31, 1995
Average Income/ Average Income/
Balance Expense Rates Balance Expense Rates
<S> <C> <C> <C> <C> <C> <C>
Rate Related Income
Loans 1 $ 99,187 $ 2,298 9.27% $ 83,132 $ 1,930 9.29%
Federal funds sold 2,060 28 5.44 409 6 5.87
Interest bearing
deposits 514 7 5.45 215 4 7.44
Investments
Taxable 38,222 580 6.07 33,965 483 5.48
Partially taxable 6,802 149 8.76 6,826 139 8.15
Tax exempt 1 700 12 6.86 1,295 22 6.80
Total Earning Assets 147,485 3,074 8.34 125,842 2,584 8.21
Interest Expense
Demand deposits 20,299 140 2.76 21,114 160 3.03
Savings 30,609 298 3.89 29,223 301 4.12
Time deposits 53,716 759 5.65 38,554 451 4.68
Short-term debt 957 14 5.85 275 3 4.36
Long-term debt 19,975 322 6.45 17,940 284 6.33
Total Interest Bearing
Liabilities $125,556 1,533 4.88 $107,106 1,199 4.48
Net Interest Margin 1 $ 1,541 $ 1,385
Net Yield on Interest
Earning Assets 4.18% 4.40%
<F1>
1 On a taxable equivalent basis.
</TABLE>
Page
TABLE II
<TABLE>
F & M BANK CORP.
INTEREST SENSITIVITY ANALYSIS
MARCH 31, 1996
(In Thousands of Dollars)
<CAPTION>
0 - 3 4 - 12 1 - 5 5 -10 Over 10 Not
Months Months Years Years Years Classified Total
<S> <C> <C> <C> <C> <C> <C> <C>
Uses of Funds
Loans:
Commercial $ 15,790 $ 1,945 $ 6,117 $ 745 $ 326 $ $ 24,923
Installment 57 571 10,568 58 11,254
Real estate 4,642 5,500 34,485 9,560 9,864 64,051
Credit cards 705 705
Interest bearing
bank deposits 51 51
Investment
securities 6,884 4,994 22,565 5,814 8,204 48,461
Federal funds
sold 1,368 1,368
Total $ 29,497 $ 13,010 $ 73,735 $ 16,177 $ 10,190 $ 8,204 $ 150,813
Sources of Funds
Interest bearing
deposits $ 20,297 $ $ $ $ $ $ 20,297
Regular savings 30,576 30,576
Certificates of
deposit
100,000
and over 1,065 1,615 2,796 5,476
Other certificates
of deposit 8,647 22,746 17,611 75 49,079
Short-term
borrowings 1,528 1,528
Long-term debt 892 2,081 11,381 5,337 19,691
Total $ 63,005 $ 26,442 $ 31,788 $ 5,412 $ $ $ 126,647
Discrete Gap $ (33,508) $ (13,432) $ 41,947 $ 10,765 $ 10,190 $ 8,204 $ 24,166
Cumulative Gap (33,508) (46,940) (4,993) 5,772 15,962 24,166
Ratio of Cumulative
Assets to Cumulative
Liabilities 46.8% 47.5% 95.9% 104.6% 112.6% N/A
<F2>
Table II reflects the earlier of the maturity on repricing dates for various assets and liabilities
at March 31, 1996. In preparing the above table no assumptions are made with respect to loan
prepayments or deposit runoffs. Loan principal payments are included in the earliest period in
which the loan matures or can be repriced. Principal payments on installment loans scheduled prior
to maturity are included in the period of maturity or repricing. Proceeds from the redemption of
investments and deposits are included in the period of maturity.
</TABLE>
Page
Part II Other Information
Item 1. Legal Proceedings - Not Applicable
Item 2. Changes in Securities - Not Applicable
Item 3. Defaults Upon Senior Securities - Not Applicable
Item 4. Submission of Matters to a Vote
of Security Holders - Not Applicable
Item 5. Other Information - Not Applicable
Item 6. Exhibits and Reports on 8-K
(a) Exhibit
3 i Articles of Incorporation of F & M Bank Corp. are
incorporated by reference to Exhibits to F & M Bank
Corp.'s Form S14 filed February 17, 1984.
3 ii Bylaws of F & M Bank Corp. are incorporated by
reference to Exhibits to F & M Bank Corp.'s Form S14
filed February 17, 1984.
21 Subsidiaries of the small business issuers are
incorporated by reference to Exhibits to F & M Bank
Corp.'s 1995 Form 10-KSB filed March 26, 1996.
27 Financial Data Schedule attached
(b) Reports on Form 8-K
The Corporation did not file any reports on Form 8-K for
the quarter ending December 31, 1995.
Page
EXHIBIT INDEX
Exhibit
Index Page Number
27 Financial Data Schedule for the quarter ending
March 31, 1996 16
Page
Signature
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.
F & M BANK CORP.
JULIAN D. FISHER
Julian D. Fisher
President and Principal Financial Officer
RALPH C. FOLTZ, JR.
Ralph C. Foltz, Jr.
Controller and Chief Accounting Officer
Date May 10, 1996
<TABLE> <S> <C>
<ARTICLE> 9
<LEGEND>
This schedule contains summary financial information extracted from F&M Bank
Corp. Form 10QSB and is qualified in its entirety by reference to such
financial statements.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> MAR-31-1996
<CASH> 2,645
<INT-BEARING-DEPOSITS> 51
<FED-FUNDS-SOLD> 1,368
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 19,175
<INVESTMENTS-CARRYING> 27,826
<INVESTMENTS-MARKET> 27,806
<LOANS> 100,933
<ALLOWANCE> (862)
<TOTAL-ASSETS> 156,532
<DEPOSITS> 116,561
<SHORT-TERM> 1,528
<LIABILITIES-OTHER> 1,374
<LONG-TERM> 19,691
0
0
<COMMON> 4,071
<OTHER-SE> 13,307
<TOTAL-LIABILITIES-AND-EQUITY> 156,532
<INTEREST-LOAN> 2,295
<INTEREST-INVEST> 695
<INTEREST-OTHER> 35
<INTEREST-TOTAL> 3,025
<INTEREST-DEPOSIT> 1,197
<INTEREST-EXPENSE> 1,533
<INTEREST-INCOME-NET> 1,492
<LOAN-LOSSES> 25
<SECURITIES-GAINS> 172
<EXPENSE-OTHER> 854
<INCOME-PRETAX> 887
<INCOME-PRE-EXTRAORDINARY> 631
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 631
<EPS-PRIMARY> .78
<EPS-DILUTED> .78
<YIELD-ACTUAL> 4.18
<LOANS-NON> 0
<LOANS-PAST> 320
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 863
<CHARGE-OFFS> 28
<RECOVERIES> 2
<ALLOWANCE-CLOSE> 862
<ALLOWANCE-DOMESTIC> 862
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
