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 March 31, 1997 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 April 30, 1997
(Common stock, $6.00 par value) 2,559,340
<PAGE>
ANCHOR FINANCIAL CORPORATION AND SUBSIDIARIES
INDEX
PAGE NO.
Part I - Financial Information
Consolidated Balance Sheet - March 31, 1997
and December 31, 1996 1
Consolidated Statement of Income - Three months
ended March 31, 1997 and 1996 2
Consolidated Statement of Cash Flows -
Three months ended March 31, 1997 and 1996 3
Notes to Consolidated Financial Statements 4-7
Management's Discussion and Analysis of
Financial Condition and Results of Operation 8-10
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>
March 31, December 31,
-------------------------------------------
1997 1996
-------------------------------------------
(Unaudited) <F1>
<S> <C> <C>
ASSETS
Cash and due from banks $ 22,204,071 $ 25,346,998
Interest-bearing balances due from banks 808,319 316,654
Federal Funds Sold 1,610,000 0
Investment securities:
Held-to-maturity, at amortized cost (fair value of $14,616,152
in 1997 and $18,225,853 in 1996) 14,652,883 18,187,108
Available-for-sale, at fair value (amortized cost of $92,304,815
in 1997 and $81,272,830 in 1996) 92,407,696 82,044,037
-------------------------------------------
Total Investment Securities 107,060,579 100,231,145
-------------------------------------------
Loans 366,094,143 345,429,534
Less - unearned income (23,781) (24,367)
- allowance for loan losses (4,036,533) (3,801,201)
-------------------------------------------
Net loans 362,033,829 341,603,966
-------------------------------------------
Premises and equipment 16,163,596 16,121,015
Other assets 10,675,879 9,884,514
-------------------------------------------
Total assets $ 520,556,273 $ 493,504,292
===========================================
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Deposits:
Demand deposits $ 79,635,555 $ 79,958,880
NOW and money market accounts 215,250,736 199,879,530
Time deposits $100,000 and over 60,108,248 45,099,776
Other time and savings deposits 94,351,280 95,273,664
-----------------------------------------
Total deposits 449,345,819 420,211,850
Federal funds purchased and securities
sold under agreements to repurchase 1,895,431 6,337,197
Other short-term borrowings 2,228,848 1,847,779
Long-term debt 18,000,000 18,000,000
Subordinated notes 11,000,000 11,000,000
Other liabilities 4,513,234 3,132,061
-------------------------------------------
Total liabilities 486,983,332 460,528,887
-------------------------------------------
Stockholders' Equity:
Common stock, $6.00 par value; 7,000,000 shares
authorized; shares issued and outstanding - 2,559,340
in 1997 and 1996 15,356,040 15,356,040
Surplus 1,100,523 1,070,326
Retained earnings 17,667,717 16,684,988
Unrealized gains on investment securities
available-for-sale, net of tax 54,911 497,301
Unearned ESOP shares (606,250) (633,250)
-------------------------------------------
Total stockholders' equity 33,572,941 32,975,405
-------------------------------------------
Total liabilities and stockholders' equity $ 520,556,273 $ 493,504,292
===========================================
<F1> Obtained from audited financial statements.
</TABLE>
The accompanying notes to consolidated financial statements are an integral part
of these financial statements.
1
<PAGE>
ANCHOR FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
(Unaudited)
<TABLE>
<CAPTION>
Three months ended
March 31,
-----------------------------------------------
1997 1996
-----------------------------------------------
<S> <C> <C>
INTEREST INCOME:
Interest and fees on loans $ 8,265,305 $ 6,966,701
Interest on investment securities:
Taxable 1,543,330 1,217,189
Non-taxable 65,390 51,390
Other interest income 38,601 169,249
-----------------------------------------------
Total interest income 9,912,626 8,404,529
-----------------------------------------------
INTEREST EXPENSE:
Interest on deposits 3,924,013 3,437,819
Interest on short-term borrowings 58,676 25,054
Interest on long-term borrowings 274,784 266,747
Interest on subordinated notes 230,324 109,353
-----------------------------------------------
Total interest expense 4,487,797 3,838,973
-----------------------------------------------
Net interest income 5,424,829 4,565,556
Provision for loan losses 200,000 160,000
-----------------------------------------------
Net interest income after provision
for loan losses 5,224,829 4,405,556
-----------------------------------------------
NONINTEREST INCOME:
Service charges on deposit accounts 480,434 447,367
Commissions and fees 266,588 172,288
Trust income 53,861 57,313
Gains on sales of mortgage loans 76,700 60,087
Other operating income 171,151 43,575
-----------------------------------------------
Total noninterest income 1,048,734 780,630
-----------------------------------------------
NONINTEREST EXPENSE:
Salaries and employee benefits 2,301,851 1,975,859
Net occupancy expense 321,534 315,417
Equipment expense 322,076 288,578
Other operating expense 1,234,534 1,150,829
-----------------------------------------------
Total noninterest expense 4,179,995 3,730,683
-----------------------------------------------
Income before income taxes 2,093,568 1,455,503
Provision for income taxes 758,909 523,611
-----------------------------------------------
Net income $ 1,334,659 $ 931,892
===============================================
Net income per share $ 0.50 $ 0.36
Weighted average common shares outstanding 2,684,868 2,605,565
</TABLE>
The accompanying notes to consolidated financial statements are an integral part
of these financial statements.
2
<PAGE>
ANCHOR FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
(Unaudited)
<TABLE>
<CAPTION>
Three months ended March 31,
---------------------------------------
1997 1996
---------------------------------------
<S> <C> <C>
Cash flows from operating activities:
Net income $ 1,334,659 $ 931,892
Adjustments to reconcile net income to net cash provided
by operating activities:
Accretion and amortization of investment securities (15,566) (12,037)
Depreciation of premises and equipment 305,122 287,273
Amortization of intangible assets 100,891 99,500
Provision for loan losses 200,000 160,000
Gains on sales of mortgage loans (76,700) (60,087)
Gains on sales of premises and equipment (13,873) 4,078
Change in interest receivable (673,481) (1,005,494)
Change in prepaid expenses 25,801 13,882
Change in income taxes payable 771,739 546,815
Change in deferred taxes (253,765) (198,303)
Change in interest payable 524,953 293,691
Change in accrued expenses (65,429) (43,962)
Origination of mortgage loans held for sale (2,305,094) (3,095,850)
Proceeds from sales of mortgage loans held for sale 3,248,144 3,243,587
Net change in unearned ESOP shares 63,573 39,500
---------------------------------------
Net cash provided by operating activities 3,170,974 1,204,485
---------------------------------------
Cash flows from investing activities:
Purchase of investment securities held-to-maturity 0 (2,053,594)
Proceeds from maturities of investment securities held-to maturity 3,526,948 7,694,851
Purchase of investment securities available-for-sale (17,378,466) (19,852,882)
Proceeds from sales of investment securities available-for-sale 984,600 0
Proceeds from maturities of investment securities available-for-sale 5,384,724 2,400,000
Net change in loans (21,496,213) (16,487,678)
Capital expenditures (349,029) (841,371)
Proceeds from sale of premises and equipment 15,200 56,590
Other, net 385,034 (1,467,187)
---------------------------------------
Net cash used for investing activities (28,927,202) (30,551,271)
---------------------------------------
Cash flows from financing activities:
Net change in deposits 29,133,969 38,100,537
Net change in federal funds purchased and securities sold under agreements to repurchase (4,441,765) (1,172,445)
Net change in other short-term borrowings 381,069 1,136,159
Proceeds from issuance of long-term debt 0 3,000,000
Proceeds from issuance of stock in accordance with Stock Option Plan 0 62,010
Cash dividends paid (358,307) (267,865)
---------------------------------------
Net cash provided by financing activities 24,714,966 40,858,396
---------------------------------------
Net change in cash and cash equivalents (1,041,262) 11,511,610
Cash and cash equivalents at January 1 25,663,652 20,615,188
---------------------------------------
Cash and cash equivalents at March 31 $ 24,622,390 $ 32,126,798
=======================================
</TABLE>
The accompanying notes to consolidated financial statements are an integral part
of these financial statements.
3
<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 1996.
The results of operations for the three month period ended March
31, 1997 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
Activity in the reserve for loan losses for the three months
ended March 31, 1997 and 1996 are summarized as follows:
<TABLE>
<CAPTION>
1997 1996
------------- -------------
<S> <C> <C>
Balance, beginning of year $3,801,201 $3,045,656
Provision charged to operations 200,000 160,000
Recoveries of charged off loans 61,781 6,558
Loans charged off (26,449) (17,973)
------------- -------------
$4,036,533 $3,194,241
============= =============
</TABLE>
NOTE 3: NONPERFORMING ASSETS
The following is a summary of nonperforming assets at March 31,
1997 and 1996. 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.
4
<PAGE>
ANCHOR FINANCIAL CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
<TABLE>
<CAPTION>
1997 1996
--------- --------
<S> <C> <C>
Nonaccrual loans $ 78,890 $332,262
Loans past due ninety days or more 48,449 7,841
--------- --------
Total nonperforming assets $ 127,339 $340,103
========= ========
</TABLE>
NOTE 4: INCOME TAXES
The significant components of the Corporation's deferred tax
assets and (liabilities) recorded pursuant to Statement of
Financial Accounting Standards No. 109, "Accounting for Income
Taxes," and included in other assets in the consolidated balance
sheet, are as follows:
<TABLE>
1997 1996
------------ -------------
<S> <C> <C>
Deferred tax liabilities:
Tax depreciation over book ($ 587,897) ($ 530,404)
Net unrealized gain SFAS 115 (46,168) (18,894)
Other, net (247,684) (177,531)
------------ -------------
Total deferred tax liabilities (881,749) (726,829)
------------ -------------
Deferred tax assets:
Allowance for loan losses 1,061,908 779,463
Deferred loan fees and costs 185,243 231,425
Deferred compensation 205,391 173,102
Other, net 183,203 132,314
------------- ------------
Total deferred tax assets 1,635,745 1,316,304
------------- ------------
Net deferred tax asset $ 753,996 $ 589,475
------------- ------------
</TABLE>
5
<PAGE>
ANCHOR FINANCIAL CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
NOTE 5: LONG-TERM DEBT AND SUBORDINATED NOTES
Long-term debt and subordinated notes at March 31 are
summarized as follows:
<TABLE>
<CAPTION>
1997 1996
----------- -----------
<S> <C> <C>
Parent Company:
8.60% subordinated notes due in 2003 <F2> $ 5,000,000 $ 5,000,000
7.89% subordinated notes due in 2006 <F2> 6,000,000 0
----------- -----------
Total 11,000,000 5,000,000
----------- -----------
Subsidiaries:
5.71% Federal Home Loan Bank advance due
in 1998 5,000,000 5,000,000
5.48% Federal Home Loan Bank advance due
in 1999 3,000,000 3,000,000
6.08% Federal Home Loan Bank advance due
in 2000 5,000,000 5,000,000
7.21% Federal Home Loan Bank advance due
in 2005 5,000,000 5,000,000
----------- -----------
Total 18,000,000 18,000,000
----------- -----------
Total long-term debt and subordinated notes $29,000,000 $23,000,000
=========== ===========
<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 and subordinated notes
for the next five years subsequent to March 31, 1997 is
$5,000,000 in 1998, $3,000,000 in 1999, $5,000,000 in 2000, and
$16,000,000 there after.
NOTE 6: PER SHARE DATA
Net income per share is computed by dividing net income by the
weighted average number of shares outstanding and dilutive common
share equivalents using the treasury stock method. Common share
equivalents include common shares issuable upon exercise of
outstanding stock options. Unallocated common shares held by the
Employee Stock Ownership Plan are excluded from the weighted
average number of common shares outstanding.
6
<PAGE>
NOTE 7: IMPAIRED LOANS
Adoption of SFAS Nos. 114 and 118 as of January 1, 1996 resulted
in the identification of certain loans which were considered
impaired under the provisions of SFAS No. 114. Impaired loans are
loans for which it is probable that all amounts, including
principal and interest, will not be collected in accordance with
the contractual terms of the loan agreement. Impaired (including
cash basis) loans at March 31, all of which are held by the bank
subsidiaries, are summarized in Note 3.
At March 31, 1997, impaired loans had a related specific
allowance for loan losses totaling $8,000. There were no material
commitments to lend additional funds to customers whose loans
were classified as impaired at March 31, 1997.
NOTE 8: OTHER MATTERS
At March 31, 1997, outstanding standby letters of credit totaled
$1,920,770.
For the three months ended March 31, 1997 and 1996, the
Corporation paid interest of $3,962,844 and $3,545,281
respectively. The Corporation paid income taxes of $15,000 during
the three months ended March 31, 1997 and $37,500 during the same
period in 1996.
7
<PAGE>
Management's Discussion and Analysis
Net Income
Net income for the first quarter of 1997 was $1,334,659 an increase of
$402,767 or 43.2% from the $931,892 for the same period in 1996. Net income per
share for the first quarter increased 39.0% from $0.36 in 1996 to $0.50 in 1997.
The primary factors affecting this increase were an increase of $859,273
in net interest income and an increase in noninterest income of $268,104. These
positive factors were partially offset by increases in noninterest expense of
$449,312, the provision for income taxes of $235,298, and the provision for loan
losses of $40,000.
Annualized return on average total assets for the first quarter of 1997
was 1.08% compared with 0.88% in 1996. Annualized return on average
stockholders' equity for the first quarter of 1997 was 16.08% compared with
12.67% in 1996.
Net Interest Income
Net interest income, the major component of the Corporation's net income,
was $5,424,829 for the first quarter of 1997, an increase of $859,273 or 18.8%
from the $4,565,556 reported for the same period in 1996. This increase was
primarily attributed to the increased volume of earning assets during the period
and an increase in the tax equivalent net yield on earning assets from 4.72% in
1996 to 4.80% in 1997. The increased volume of earning assets was primarily the
result of quality loan demand during the period.
Interest income increased $1,508,097 or 17.9% for the three months ended
March 31, 1997 compared with the same period in 1996. The increase was due to an
increase in the volume of earning assets and the yield on earning assets which
increased from 8.67% in 1996 to 8.75% in 1997. Average loans increased $59.0
million or 20.0% and average investment securities increased $19.8 million or
23.6% for the first quarter of 1997 compared with the same period in 1996.
Average interest-earning assets represented 91.7% of average total assets during
the first quarter of 1997 compared with 91.5% in 1996. The composition of
average interest-earning assets changed slightly as the percentage of average
loans to average interest-earning assets increased from 75.3% in 1996 to 76.8%
in 1997.
Interest expense increased $648,824 or 16.9% for the three months ended
March 31, 1997 compared with the same period in 1996. The increase in interest
expense was due to an increase in the volume of average interest-bearing
liabilities and the rate paid on average interest-bearing liabilities which
increased from 4.63% for the three months ended March 31, 1996 to 4.66% for the
same period in 1997. Average interest-bearing liabilities increased $57.1
million or 17.1% for the first quarter of 1997 compared with the same period in
1996. Average interest-bearing liabilities represented 84.9% of funding sources
during the first quarter of 1997 compared with 85.3% in 1996.
Provision for Loan Losses
A $200,000 provision for loan losses was made during the first quarter of
1997 compared with a provision of $160,000 in 1996. The provision for loan
losses increased during the first quarter of 1997 primarily due to loan growth
since credit quality measures remain favorable.
8
<PAGE>
At March 31, 1997 and 1996 the ratio of annualized net charge-offs
(recoveries) to average loans was (0.04%) and 0.02%, respectively. The ratio of
nonperforming assets to total loans and other real estate owned was 0.03% at
March 31, 1997 compared with 0.11% at March 31, 1996.
The reserve for loan losses at March 31, 1997 and December 31, 1996
represented 1.10% of total loans outstanding. Based on the current evaluation of
the loan portfolio, management believes the reserve at March 31, 1997 is
adequate to cover potential losses in the portfolio.
Noninterest Income
Noninterest income for the first quarter of 1997 increased $268,104 or
34.3% from the same period in 1996. The primary factors attributing to this
increase were increases in service charges on deposit accounts of $33,067 or
7.4%, commissions and fees of $94,300 or 54.7%, mortgage banking income of
$16,613 or 27.7%, and other operating income of $127,576 or 292.8%. These
positive changes were offset by a slight decrease in trust income.
The increase in service charges on deposit accounts was due to the
significant growth in deposits and competitive prices. The increase in
commissions and fees resulted primarily from increased revenue generated by
credit card merchant services and ATM terminal fees. Mortgage banking income
(which includes normal servicing fees and profits from the origination and sale
of loans) increased due to the Corporation concentrating more resources on
growing its mortgage loan portfolio. The increase in other operating income was
generated by normal banking and bank-related activities.
Noninterest Expense
Noninterest expense for the first quarter of 1997 increased $449,312 or
12.0 % from the same period in 1996. This increase was the result of increases
in salaries and employee benefits, net occupancy expense, and equipment expense
caused by the Corporation's continued strong growth.
Salaries and employee benefits for the first quarter of 1997 increased
$325,992 or 16.5% from the same period in 1996. This increase was primarily due
to the increased number of employees from expansion into new markets and
investments in new personnel to further develop the infrastructure of the
Corporation.
Equipment expense increased $33,498 or 11.6% and net occupancy expense
increased slightly for the first quarter of 1997 compared with the same period
in 1996. These increases were primarily due to the addition of a second banking
location in Wilmington, North Carolina. Other operating expense for the three
months ended March 31, 1997 increased $83,705 or 7.3% compared with the same
period in 1996.
Income Taxes
The provision for income taxes for the first quarter of 1997 increased
$235,298 or 44.9% from the same period in 1996. The provision for income taxes
increased in 1997 primarily due to higher income before taxes because tax rates
remained approximately the same as 1996.
9
<PAGE>
Financial Position
For the first quarter of 1997, average total assets increased 17.5% while
average deposits increased 16.1% from the first quarter of 1996.
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 and a line of credit
with the Federal Home Loan Bank ("FHLB").
The Corporation utilizes long-term advances from the FHLB as part of its
funding strategy. FHLB long-term advances totaled $18,000,000 at March 31, 1997
and 1996.
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 three months of 1997 being 6.7% versus 6.9% for the same period in
1996. At March 31, 1997, the total risk-based capital ratio was 12.7% compared
with 13.3% at December 31, 1996. The leverage ratio at March 31, 1997 was 6.6%
compared with 6.8% at December 31, 1996.
10
<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
On April 24, 1997, the Corporation held its 1997 Annual Meeting
of Shareholders. At the 1997 Annual Meeting, the following
individuals were elected as Directors with the votes indicated.
<TABLE>
<CAPTION>
Director For Withheld Abstain
<S> <C> <C> <C>
Howell V. Bellamy, Jr. 1,748,027 0 15,585
W. Cecil Brandon, Jr. 1,745,310 2,717 15,585
C. Donald Cameron 1,747,581 446 15,585
J. Roddy Swaim 1,746,005 2,022 15,585
Harry A. Thomas 1,737,320 10,707 15,585
</TABLE>
C. Jason Ammons, Jr., James E. Burroughs, Stephen L. Chryst, J. Bryan
Floyd, Admah Lanier, Jr., Tommy E. Looper, W. Gairy Nichols, III,
Ruppert L. Piver, Albert A. Springs, III, and Zeb M. Thomas, Sr.
continued in their terms of office as directors of the Corporation.
The following is a brief description of other matters voted upon at
the 1997 Annual Meeting and the number of votes cast for and withheld,
as well as, the number of abstentions.
Proposal to ratify the selection of Price Waterhouse LLP as
independent public accountants for the Corporation for the year ending
December 31, 1997.
For - 1,744,872 Withheld - 1,690 Abstain - 17,050
ITEM 5. OTHER INFORMATION
None.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) 27 Financial Data Schedule (for SEC purposes only)
(b) No reports on Form 8-K have been filed during the quarter ended
March 31, 1997.
11
<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
/s/ John J. Moran
John J. Moran, Senior Vice President
and Comptroller
Date: April 30, 1997
12
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 9
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> MAR-31-1997
<CASH> 22,204,071
<INT-BEARING-DEPOSITS> 808,319
<FED-FUNDS-SOLD> 1,610,000
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 92,407,696
<INVESTMENTS-CARRYING> 14,652,883
<INVESTMENTS-MARKET> 14,616,152
<LOANS> 366,070,362
<ALLOWANCE> 4,036,533
<TOTAL-ASSETS> 520,556,273
<DEPOSITS> 449,345,819
<SHORT-TERM> 4,124,279
<LIABILITIES-OTHER> 4,513,234
<LONG-TERM> 29,000,000
0
0
<COMMON> 15,356,040
<OTHER-SE> 18,216,901
<TOTAL-LIABILITIES-AND-EQUITY> 520,556,273
<INTEREST-LOAN> 8,265,305
<INTEREST-INVEST> 1,608,720
<INTEREST-OTHER> 38,601
<INTEREST-TOTAL> 9,912,626
<INTEREST-DEPOSIT> 3,924,013
<INTEREST-EXPENSE> 4,487,797
<INTEREST-INCOME-NET> 5,424,829
<LOAN-LOSSES> 200,000
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 4,179,995
<INCOME-PRETAX> 2,093,568
<INCOME-PRE-EXTRAORDINARY> 2,093,568
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,334,659
<EPS-PRIMARY> 0.50
<EPS-DILUTED> 0.50
<YIELD-ACTUAL> 4.80
<LOANS-NON> 78,890
<LOANS-PAST> 48,449
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 3,801,201
<CHARGE-OFFS> 26,449
<RECOVERIES> 61,781
<ALLOWANCE-CLOSE> 4,036,533
<ALLOWANCE-DOMESTIC> 3,536,533
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 500,000
</TABLE>
