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 the quarter ended June 30, 1995 Commission file number 0-13759
ANCHOR FINANCIAL CORPORATION
(Exact name of registrant as specified in its charter)
South Carolina 57-0778015
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification number)
2002 Oak St., Myrtle Beach, S. C. 29577
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (803) 448-1411
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 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
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 August 7, 1995
(Common stock, $6.00 par value) 1,270,210
<PAGE>
ANCHOR FINANCIAL CORPORATION AND SUBSIDIARIES
INDEX
PAGE NO.
Part I - Financial Information
Consolidated balance sheet - June 30, 1995
and December 31, 1994 1
Consolidated statement of income - three months
and six months ended June 30, 1995 and 1994 2
Consolidated statement of cash flows -
six months ended June 30, 1995 and 1994 3
Notes to consolidated financial statements 4-6
Management's Discussion and Analysis of
Financial Condition and Results of Operation 7-10
Part II - Other Information
Item 1 - Legal Proceedings 11
Item 2 - Changes in Securities 11
Item 3 - Defaults Upon Senior Securities 11
Item 4 - Submission of Matters to a Vote
of Security-Holders 11
Item 5 - Other Information 11
Item 6 - Exhibits and Reports on Form 8-K 11
<PAGE>
ANCHOR FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
<TABLE>
<CAPTION>
June 30, December 31,
1995 1994
(Unaudited) <F1>
<S> <C> <C>
Assets
Cash and due from banks $18,098,799 $18,838,551
Interest-bearing balances due from banks 99,000 99,000
Federal funds sold 13,650,000 1,000,000
Investment securities:
Held-to-maturity, at amortized cost (fair
value of $29,540,762 in 1995 and $33,949,605
in 1994) 29,631,332 35,012,480
Available-for-sale, at fair value (amortized
cost of $42,983,152 in 1995 and $45,031,822
in 1994) 43,251,678 44,066,796
Total investment securities 72,883,010 79,079,276
Loans 264,435,268 236,801,927
Less - unearned income (26,179) (30,651)
- reserve for loan losses (2,889,162) (2,795,941)
Net loans 261,519,927 233,975,335
Premises and equipment 12,911,189 11,666,522
Other assets 7,207,984 7,208,278
Total assets $386,369,909 $351,866,962
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Deposits:
Demand deposits $ 66,452,604 $ 52,730,429
NOW and Money Market accounts 158,718,478 155,753,241
Time deposits $100,000 and over 25,436,735 20,320,349
Other time and savings deposits 88,277,357 79,404,398
Total deposits 338,885,174 308,208,417
Federal funds purchased and securities sold
under agreements to repurchase 734,931 4,896,099
Other short-term borrowings 2,274,927 7,098,089
Long-term debt 15,000,000 5,000,000
Other liabilities 2,594,244 1,889,739
Total liabilities 359,489,276 327,092,344
Stockholders' Equity:
Common stock, $6.00 par value; 4,000,000 shares
authorized; shares issued and outstanding -
1,270,210 in 1995 and 1994 7,621,260 7,621,260
Surplus 8,479,858 8,479,858
Retained earnings 11,547,656 10,317,527
Unrealized gain (losses) on investment
securities available-for-sale, net of tax 175,093 (636,918)
Unearned ESOP shares (943,234) (1,007,109)
Total stockholders' equity 26,880,633 24,774,618
Total liabilities and
stockholders' equity $386,369,909 $351,866,962
<F1> Obtained from audited financial statements.
</TABLE>
The accompanying notes to consolidated financial statements are an
integral part of these financial statements.
<PAGE>
ANCHOR FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
(Unaudited)
<TABLE>
<CAPTION>
Six months ended Three months ended
June 30, June 30,
1995 1994 1995 1994
<S> <C> <C> <C> <C>
INTEREST INCOME:
Interest and fees on loans $12,041,493 $9,004,749 $6,321,581 $4,723,000
Interest on investment
securities:
Taxable 2,141,339 1,297,745 1,074,216 685,985
Non-taxable 94,174 92,348 46,874 44,521
Other interest income 78,994 113,510 15,971 82,673
Total interest income 14,356,000 10,508,352 7,458,462 5,536,179
INTEREST EXPENSE:
Interest on deposits 5,847,032 3,719,095 3,096,086 1,972,499
Interest on short-term
borrowings 193,471 61,399 72,077 19,482
Interest on long-term debt 293,494 218,505 184,735 109,746
Total interest expense 6,333,997 3,998,999 3,352,898 2,101,727
Net interest income 8,022,003 6,509,353 4,105,564 3,434,452
Provision for loan losses 249,500 230,000 115,000 180,000
Net interest income after
provision for loan losses 7,772,503 6,279,353 3,990,564 3,254,452
NONINTEREST INCOME:
Trust income 103,377 66,422 55,569 21,964
Service charges on deposit
accounts 761,305 800,340 396,814 416,503
Commissions and fees 287,375 277,182 139,527 135,799
Gains on the sales of
mortgage loans 127,655 256,727 79,316 105,015
Investment securities gains 36,884 272,384 36,884 272,384
Other operating income 103,626 94,762 40,368 47,545
Total noninterest income 1,420,222 1,767,817 748,478 999,210
NONINTEREST EXPENSE:
Salaries and employee
benefits 3,428,032 2,916,945 1,784,434 1,500,898
Net occupancy expense 479,378 437,369 240,011 225,486
Equipment expense 485,395 493,416 240,408 250,802
Other operating expense 2,199,521 2,060,978 1,179,008 1,071,134
Total noninterest expense 6,592,326 5,908,708 3,443,861 3,048,320
Income before income taxes 2,600,399 2,138,462 1,295,181 1,205,342
Provision for income taxes 912,995 718,144 451,527 421,075
Net income $1,687,404 $1,420,318 $ 843,654 $ 784,267
Net income per share $ 1.33 $ 1.12 $ 0.66 $ 0.62
Weighted average number of
shares outstanding 1,270,210 1,268,735 1,270,210 1,270,210
</TABLE>
The accompanying notes to consolidated financial statements are an
integral part of these financial statements.
<PAGE>
ANCHOR FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
(Unaudited)
<TABLE>
<CAPTION>
Six months ended
June, 30
1995 1994
<S> <C> <C>
Increase (Decrease) in Cash and Cash Equivalents
Cash flows from operating activities:
Net income $1,687,404 $1,420,318
Adjustments to reconcile net income to net cash
provided by operating activities:
Accretion and amortization of investment securities 35,304 255,308
Depreciation of premises and equipment 484,166 475,556
Amortization of intangible assets 151,214 145,128
Provision for loan losses 249,500 230,000
Gains on sales of investment securities (36,884) (272,384)
Gains on sales of mortgage loans (127,655) (256,727)
Gains on sales of premises and equipment (20,530) (10,440)
Change in interest receivable (115,374) (688,907)
Change in prepaid expenses 283,646 207,366
Change in income taxes payable 192,580 51,920
Change in deferred taxes 242,513 198,589
Change in interest payable 234,165 (21,201)
Change in accrued expenses (92,479) 69,610
Origination of mortgage loans held for sale (5,483,705) (13,047,325)
Proceeds from sales of mortgage loans held for sale 5,626,443 11,749,895
Net cash provided by operating activities 3,310,308 506,706
Cash flows from investing activities:
Purchase of investment securities held-to-maturity 0 (5,725,192)
Proceeds from maturities of investment
securities held-to-maturity 5,293,525 4,122,061
Purchase of investment securities available-for-sale (910,200) (13,253,572)
Proceeds from sales of investment securities
available-for-sale 2,286,575 1,271,866
Proceeds from maturities of investment
securities available-for-sale 761,498 2,564,103
Net change in loans (27,809,175) (16,023,897)
Capital expenditures (1,768,237) (1,159,942)
Proceeds from sale of premises and equipment 59,934 12,200
Other, net (613,007) (881,088)
Net cash used for investing activities (22,699,087) (29,073,461)
Cash flows from financing activities:
Net change in deposits 30,676,758 32,193,008
Net change in federal funds purchased (4,161,168) 592,197
Net change in short-term borrowings (4,823,162) (267,383)
Net change in long-term debt 10,000,000 0
Sale of common stock 0 221,600
Net change in ESOP borrowings 63,875 0
Cash dividends paid (457,276) (393,764)
Net cash provided by financing activities 31,299,027 32,345,658
Net change in cash and cash equivalents 11,910,248 3,778,903
Cash and cash equivalents at January 1 19,937,551 26,864,974
Cash and cash equivalents at June 30 $31,847,799 $30,643,877
</TABLE>
The accompanying notes to consolidated financial statements are an
integral part of these financial statements.
<PAGE>
ANCHOR FINANCIAL CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
NOTE 1: BASIS OF PRESENTATION
The accompanying consolidated financial statements are unaudited;
however,such information reflects all adjustments (consisting
solely of normal recurring adjustments) which are, in the opinion
of management, necessary for a fair statement of the financial
position and operating results of Anchor Financial Corporation and
its subsidiaries for the periods presented. A summary of the
Corporation's significant accounting policies is set forth in Note
1 to the Consolidated Financial Statements in the Corporation's
Annual Report on Form 10-K for 1994.
The results of operations for the three and six month period ended
June 30, 1995 are not necessarily indicative of the results to be
expected for the full year.
For purposes of the Consolidated Statement of Cash Flows, the
Corporation has defined cash and cash equivalents as cash on hand,
amounts due from banks, and federal funds sold. Generally, federal
funds are purchased and sold for one-day periods.
NOTE 2: RESERVE FOR LOAN LOSSES
Transactions to the reserve for loan losses for the six months
ended June 30, 1995 and 1994 are summarized as follows:
<TABLE>
<CAPTION>
1995 1994
<S> <C> <C>
Balance, beginning of year $2,795,941 $2,361,656
Provision charged to operations 249,500 230,000
Recoveries of charged-off loans 49,144 41,441
Loans charged off (205,423) (201,336)
$2,889,162 $2,431,761
</TABLE>
NOTE 3: NONPERFORMING ASSETS
The following is a summary of nonperforming assets at June 30, 1995
and 1994. The income effect of interest foregone on these assets is
not material. The Corporation did not have any loans with reduced
interest rates because of troubled debt restructuring, foreign
loans, or loans for highly leveraged transactions. Management is
not aware of any situation, other than those included in the
summary below, where known information about a borrower would
require disclosure as a potential problem loan.
<PAGE>
ANCHOR FINANCIAL CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
<TABLE>
<CAPTION>
1995 1994
<S> <C> <C>
Nonaccrual loans $ 746,218 $430,265
Loans past due ninety days or more 672,880 58,249
Other real estate owned 50,000 26,867
Total nonperforming assets $1,469,098 $515,381
NOTE 4: INCOME TAXES
The significant components of the Corporation's deferred tax assets
and (liabilities) recorded pursuant to Statement of Financial
Accounting Standards No. 109, "Accounting for Income Taxes," and
included in other assets in the consolidated balance sheet, are as
follows:
</TABLE>
<TABLE>
<CAPTION>
1995 1994
<S> <C> <C>
Deferred tax liabilities:
Tax depreciation over book ($489,691) ($506,300)
Net unrealized gain SFAS 115 (93,433) (342,651)
Other, net (131,830) (21,729)
Total deferred tax liabilities (714,954) (870,680)
Deferred tax assets:
Allowance for loan losses 678,378 456,347
Deferred loan fees and costs 225,574 195,557
Deferred compensation 165,617 0
Other, net 115,335 134,235
Total deferred tax liabilities 1,184,904 786,139
Net deferred tax asset (liability) $469,950 ($84,541)
</TABLE>
<PAGE>
ANCHOR FINANCIAL CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
NOTE 5: LONG-TERM DEBT
Long-term debt at June 30 is summarized as follows:
<TABLE>
<CAPTION>
1995 1994
<S> <C> <C>
Parent Company:
8.60% subordinated notes due in 2003 <F2> $ 5,000,000 $5,000,000
Subsidiaries:
6.08% Federal Home Loan Bank advance due
in 2000 5,000,000 0
7.21% Federal Home Loan Bank advance due
in 2005 5,000,000 0
Total long-term debt $15,000,000 $5,000,000
<F2> Debt qualifies for inclusion in the determination of total
capital under the Risk-Based Capital Guidelines.
</TABLE>
The principal maturity of long-term debt for the next five years subsequent
to June 30, 1995 is $5,000,000 in 2000.
NOTE 6: PER SHARE DATA
Earnings per share are computed by dividing net income for each
period by the weighted average number of shares outstanding during
each period. The effect of outstanding stock options is not
material to the weighted average number of common shares
outstanding or earnings per share and has not been included in the
calculation.
NOTE 7: OTHER MATTERS
At June 30, 1995, outstanding standby letters of credit totaled
$623,000. At June 30, 1995 and 1994, the Corporation paid interest
of $6,099,832 and $4,020,200 respectively. The Corporation paid
income taxes of $477,903 during the second quarter of 1995 and
$467,635 during the same period in 1994.
<PAGE>
Management's Discussion and Analysis
Net Income
Net income for the second quarter of 1995 was $843,654, an increase of
$59,387 or 7.6% from the $784,267 for the same period in 1994. Net income
per share for the second quarter increased 7.6% from $0.62 in 1994 to $0.66
in 1995. Excluding securities gains, net income increased $210,107 or
34.5%. The primary factors affecting this increase were an increase of
$671,112 in net interest income and a decrease in the provision for loan
losses of $65,000. These positive factors were partially offset by a
decrease of $250,732 in noninterest income and increases in noninterest
expense of $395,541 and the provision for income taxes of $30,452.
Net income for the six months ended June 30, 1995 was $1,687,404, an
increase of $267,086 or 18.8% from the $1,420,318 for the same period in
1994. Net income per share for this period increased 18.7% from $1.12 in
1994 to $1.33 in 1995. Excluding securities gains, net income increased
$417,806 or 33.5%. The primary factor affecting this increase was an
increase of $1,512,650 in net interest income. This positive factor was
partially offset by a decrease of $347,595 in noninterest income and
increases in noninterest expense of $683,618, the provision for loan losses
of $19,500, and the provision for income taxes of $194,851.
Annualized return on average total assets for the second quarter of 1995
was 0.92% compared with 0.98% in 1994. For the six months ended June 30,
1995, annualized return on average total assets was 0.94% compared with
0.92% in 1994. Annualized return on average stockholders' equity for the
second quarter of 1995 was 12.35% compared with 12.86% in 1994. For the six
months ended June 30, 1995, annualized return on average stockholders'
equity was 12.54% compared with 11.81% for the same period in 1994.
Net Interest Income
Net interest income, the major component of the Corporation's net
income, was $4,105,564 for the second quarter of 1995, an increase of
$671,112 or 19.5% from the $3,434,452 reported for the same period in 1994.
This increase was primarily attributable to the increased volume of earning
assets during the period and an increase in the tax equivalent net yield on
earning assets from 4.78% in 1994 to 4.92% in 1995. The increased volume
of earning assets was primarily the result of quality loan demand and
strong deposit growth.
Interest income increased $1,922,283 or 34.7% for the three months ended
June 30, 1995 compared with the same period in 1994. The increase was due
to an increase in the volume of earning assets and the yield on earning
assets which increased from 7.69% in 1994 to 8.92% in 1995. Average loans
increased $39.0 million or 17.7% and average investment securities
increased $10.8 million or 17.5% for the second quarter of 1995 compared
with the same period in 1994. Average interest earning assets represented
91.0% of average total assets during the second quarter of 1995 compared
with 90.3% in 1994. The composition of average interest-earning assets
changed slightly as the percentage of average loans to average interest-
earning assets increased from 76.2% in 1994 to 77.3% in 1995.
<PAGE>
Interest expense increased $1,251,171 or 59.5% for the three months
ended June 30, 1995 compared with the same period in 1994. The increase in
interest expense was due to an increase in the volume of average interest-
bearing liabilities and the rate paid on these funds during the period.
Average interest-bearing liabilities increased $37.6 million or 15.6% for
the second quarter of 1995 compared with the same period in 1994. The rate
paid on average interest-bearing liabilities increased from 3.49% for the
three months ended June 30, 1994 to 4.82% in 1995. Average interest-bearing
liabilities represented 83.0% of funding sources during the second quarter
of 1995 compared with 83.3% in 1994.
For the six months ended June 30, 1995, net interest income increased
$1,512,650 or 23.2% from the same period in 1994. The primary reason for
this increase was the increased volume of earning assets during the period
and an increase in the tax equivalent net yield on earning assets from
4.71% for the first six months of 1994 to 4.94% for the same period in
1995. The increase in net yield during the six month period primarily
reflects the Corporation's favorable position during a period of rising
interest rates. The increased volume of earning assets was primarily the
result of quality loan demand and strong deposit growth.
Interest income increased $3,847,648 or 36.6% for the six months ended
June 30, 1995 compared with the same period in 1994. The increase was due
to an increase in the yield of earning assets which increased from 7.58% in
1994 to 8.81% in 1995. Average loans increased $35.5 million or 16.4% and
average investment securities increased $14.8 million or 24.5% for the six
months ended June 30, 1995 compared with the same period in 1994. Average
interest-earning assets represented 91.3% of average total assets during
the six months ended June 30, 1995 versus 90.2% in 1994. The composition
of average interest-earning assets changed slightly as the percentage of
average loans to average interest-earning assets decreased from 76.9% in
1994 to 76.4% in 1995.
Interest expense increased $2,334,998 or 58.4% for the six months ended
June 30, 1995 compared with the same period in 1994. The increase in
interest expense was due to an increase in the volume of average interest-
bearing liabilities and the rate paid on these funds during the period.
Average interest-bearing liabilities increased $38.8 million or 16.4% for
the six months ended June 30, 1995 compared with the same period in 1994.
The rate paid on average interest-bearing liabilities increased from 3.41%
for the six months ended June 30, 1994 to 4.64% in 1995. Average interest-
bearing liabilities represented 83.6% of funding sources during the six
months ended June 30, 1995 compared with 84.3% in 1994.
Provision for Loan Losses
A $115,000 provision for loan losses was made during the second quarter
of 1995 compared with a provision of $180,000 in 1994. The provision for
loan losses was lower during the second quarter of 1995 primarily due to
lower net charge-offs realized during 1995. The provision for loan losses
for the six months ended June 30, 1995 was $249,500 versus $230,000 for the
same period in 1994. The slight increase in the provision for loan losses
for the six months ended June 30, 1995 was primarily due to loan growth
since credit quality measures remain favorable.
At June 30, 1995 and 1994 the ratio of annualized net charge-offs to
average loans was 0.13% and 0.15%, respectively. The ratio of
nonperforming assets to total loans and other real estate owned was 0.55%
at June 30, 1995 compared with 0.23% at June 30, 1994.
<PAGE>
The reserve for loan losses at June 30, 1995 represented 1.09% of total
loans outstanding compared with 1.18% at December 31, 1994. Based on the
current evaluation of the loan portfolio, management believes the reserve at
June 30 is adequate to cover potential losses in the portfolio.
Noninterest Income
Noninterest income for the second quarter of 1995 decreased $250,732 or
25.1% from the same period in 1994. Noninterest income before investment
securities gains for the second quarter of 1995 decreased $15,232 or 2.1%
from the same period in 1994. The primary reason for this decrease was a
decline in gains on sales of mortgage loans of $25,699 or 24.5%. Service
charges on deposit accounts decreased $19,689 or 4.7%.
Noninterest income for the six months ended June 30, 1995 decreased
$347,595 or 19.7% from the same period in 1994. Noninterest income before
investment securities gains for the six months ended June 30, 1995
decreased $112,095 or 7.5% from the same period in 1994. The primary
reason for this decrease was a decline in gains on sales of mortgage loans
of $129,072 or 50.3%. Service charges on deposit accounts decreased
$39,035 or 4.9%.
Gains on sales of mortgage loans decreased during 1995 primarily due to
lower refinancing activity. Service charges on deposit accounts were lower
in 1995 primarily because of a higher interest rate environment and stable
prices.
During the second quarter of 1994, the Corporation received common stock
in a publicly traded company in exchange for certain securities of unknown
value that it had previously received by order of the U.S. Bankruptcy Court
in lieu of debt charged-off in 1990. An orderly sale of the stock over
time resulted in the Corporation making a substantial recovery of the funds
charged-off. During the second quarter of 1994, the Corporation realized a
before tax gain of approximately $275,000 from the sale of a portion of
these securities.
Noninterest Expense
Noninterest expense for the second quarter of 1995 increased $395,541 or
13.0% from the same period in 1994. For the six months ended June 30,
1995, noninterest expense increased $683,618 or 11.6% from the same period
in 1994. These increases were primarily the result of increased salaries
and employee benefits caused by the significant growth of the Corporation
during the last year. Also, the FDIC insurance assessment increased
$35,675 or 11.5% from the first six months of 1994 to $347,162.
Income Taxes
The provision for income taxes for the second quarter of 1995 increased
$30,452 or 7.2% from the same period in 1994. For the six months ended
June 30, 1995, the provision increased $194,851 or 27.1% from the same
period in 1994. The provision for income taxes increased in 1995 primarily
due to higher income before taxes since tax rates remained approximately
the same as 1994.
<PAGE>
Financial Position
For the second quarter of 1995, average total assets increased 15.0%
while average deposits increased 13.1% from the second quarter of 1994. For
the six months ended June 30, 1995, average total assets increased 15.7%
while average deposits increased 14.9 % from the same period in 1994. Due
to the seasonal nature of the Myrtle Beach and Hilton Head Island market
areas, deposit growth is strong during the summer months and loan demand
usually reaches its peak during the winter months. Thus, the Corporation
historically has a more favorable liquidity position during the summer
months. To meet loan demand and liquidity needs during the winter months,
the Corporation typically invests sizable amounts of its deposit growth
during the summer months in temporary investments and short-term securities
maturing in the winter months. Additionally, the Corporation has access to
other funding sources including federal funds purchased from correspondent
banks, a line of credit with the Federal Home Loan Bank, and a seasonal
borrowing privilege from the Federal Reserve Bank.
During the second quarter of 1995, the Corporation utilized long-term
advances from the Federal Home Loan Bank ("FHLB") as part of its funding
strategy. FHLB advances totaled $10,000,000 at June 30, 1995 versus none
at June 30, 1994.
The Corporation continues to have a strong capital position by industry
standards with the ratio of average stockholders' equity to average total
assets for the first six months of 1995 being 7.5% versus 7.8% for the
same period in 1994. At June 30, 1995, the total risk-based capital
ratio was 12.6% compared with 13.5% at December 31, 1994. The leverage
ratio at June 30, 1995 was 6.8% compared with 6.9% at December 31, 1994.
<PAGE>
PART II - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
There are no material legal proceedings.
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
No reports on Form 8-K have been filed during the quarter ended
June 30, 1995.
<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 thereunto duly authorized.
/s/ Stephen L. Chryst
Stephen L. Chryst, President and
Chief Executive Officer
/s/ Tommy E. Looper
Tommy E. Looper, Executive Vice
President and Chief Financial
Officer
Date: August 7, 1995
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 9
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> JUN-30-1995
<CASH> 18,098,799
<INT-BEARING-DEPOSITS> 99,000
<FED-FUNDS-SOLD> 13,650,000
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 43,251,678
<INVESTMENTS-CARRYING> 29,631,332
<INVESTMENTS-MARKET> 29,540,762
<LOANS> 264,409,089
<ALLOWANCE> 2,889,162
<TOTAL-ASSETS> 386,369,909
<DEPOSITS> 338,885,174
<SHORT-TERM> 3,009,858
<LIABILITIES-OTHER> 2,594,244
<LONG-TERM> 15,000,000
<COMMON> 7,621,260
0
0
<OTHER-SE> 19,259,373
<TOTAL-LIABILITIES-AND-EQUITY> 386,369,909
<INTEREST-LOAN> 12,041,493
<INTEREST-INVEST> 2,235,513
<INTEREST-OTHER> 78,994
<INTEREST-TOTAL> 14,356,000
<INTEREST-DEPOSIT> 5,847,032
<INTEREST-EXPENSE> 6,333,997
<INTEREST-INCOME-NET> 8,022,003
<LOAN-LOSSES> 249,500
<SECURITIES-GAINS> 36,884
<EXPENSE-OTHER> 6,592,326
<INCOME-PRETAX> 2,600,399
<INCOME-PRE-EXTRAORDINARY> 1,687,404
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,687,404
<EPS-PRIMARY> 1.33
<EPS-DILUTED> 1.33
<YIELD-ACTUAL> 4.94
<LOANS-NON> 746,218
<LOANS-PAST> 672,880
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 2,795,941
<CHARGE-OFFS> 205,423
<RECOVERIES> 49,144
<ALLOWANCE-CLOSE> 2,889,162
<ALLOWANCE-DOMESTIC> 2,389,162
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 500,000
</TABLE>
