<PAGE> 1
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-QSB
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 1997
Commission file number 0-133312
THE FIRST JERMYN CORP.
(Exact name of small business issuer as specified in its charter)
PENNSYLVANIA 23-2275242
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
645 WASHINGTON AVENUE; P.O. BOX 39; JERMYN PENNSYLVANIA 18433-0039
(Address of principal executive offices) (Zip Code)
Issuer's telephone number 717-876-6500
Check whether the issuer (1) has filed all reports required to be filed by
Section 13 or 15(d) of the 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 requirements for the past 90 days.
Yes [X] No [ ]
State the number of shares outstanding of each of the issuer's classes of common
stock, as of the latest practicable date.
<TABLE>
<CAPTION>
Class Outstanding at May 6, 1997
----- --------------------------
<S> <C>
Common stock, $1.25 par value 884,680
</TABLE>
<PAGE> 2
THE FIRST JERMYN CORP. AND SUBSIDIARIES
FORM 10-QSB
QUARTER ENDED MARCH 31, 1997
INDEX
<TABLE>
<CAPTION>
PAGE
----
<S> <C>
PART 1 - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS:
Consolidated Balance Sheets - March 31, 1997 and
December 31, 1996 1
Consolidated Statements of Income - Three Months
Ended March 31, 1997 and 1996 2
Consolidated Statements of Cash Flows -
Three Months Ended March 31, 1997 and 1996 3
Notes to Consolidated Financial Statements-
Three Months Ended March 31, 1997 and 1996 and
December 31, 1996 4
ITEM 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations 6
PART II - OTHER INFORMATION 11
SIGNATURES 12
</TABLE>
<PAGE> 3
PART I. FINANCIAL INFORMATION
ITEM I. FINANCIAL STATEMENTS
THE FIRST JERMYN CORP. AND SUBSIDIARIES
Consolidated Balance Sheets
(In thousands of dollars, except per share information)
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------
March 31, December 31,
ASSETS 1997 1996
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Cash and due from banks $6,878 8,103
Federal Funds sold 5,690 1,900
Securities available for sale 22,147 24,325
Mortgage backed securities available for sale 24,138 25,006
Investment securities 54,578 57,827
Loans, gross 196,726 197,598
Less: Unearned discount and origination fees (962) (988)
Allowance for loan losses (3,001) (3,111)
- ---------------------------------------------------------------------------------------------------------------
Loans, net 192,763 193,499
Accrued interest receivable 2,483 2,470
Bank premises, leasehold improvements and furniture and equipment -net 5,076 5,067
Real estate owned other than bank premises 339 199
Other assets 3,105 3,257
- --------------------------------------------------------------------------------------------------------------
Total assets $317,197 321,563
LIABILITIES
Deposits:
Noninterest-bearing demand $25,036 30,437
Interest-bearing 260,283 259,678
- --------------------------------------------------------------------------------------------------------------
Total deposits 285,319 290,115
- --------------------------------------------------------------------------------------------------------------
Capitalized lease obligation 802 821
Accrued interest payable 1,284 1,250
Other liabilities 270 703
- --------------------------------------------------------------------------------------------------------------
Total liabilities 287,675 292,889
- --------------------------------------------------------------------------------------------------------------
SHAREHOLDERS' EQUITY
Common stock, $1.25 par value, authorized 2,500,000 shares;
Outstanding 899,885 shares 1,125 1,125
Surplus 3,876 3,876
Retained earnings 25,156 24,343
Unrealized loss on securities available for sale, net of tax (439) (474)
Less treasury stock-at cost (15,205) (196) (196)
- ---------------------------------------------------------------------------------------------------------------
Total shareholders equity 29,522 28,674
- --------------------------------------------------------------------------------------------------------------
Total liabilities and shareholders' equity $317,197 321,563
==============================================================================================================
</TABLE>
1
<PAGE> 4
THE FIRST JERMYN CORP. AND SUBSIDIARIES
Consolidated Statements of Income
(In thousands of dollars, except per share information)
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------
Three months ended March 31,
1997 1996
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Interest income:
Interest and fees on loans $ 3,953 3,686
Interest and dividends on securities:
U.S. Treasury 913 1,164
U.S. government agencies -- 1
Collateralized mortgage obligations of U.S. government
agencies and corporations 388 430
State and political subdivisions 244 247
Other taxable debt 1 8
Taxable equity 2 2
Interest on federal funds sold 66 127
- --------------------------------------------------------------------------------------------------------------
Total interest income 5,567 5,665
- --------------------------------------------------------------------------------------------------------------
Interest expense:
Deposits 2,783 2,843
Capitalized lease obligation 20 21
- --------------------------------------------------------------------------------------------------------------
Total interest expense 2,803 2,864
- --------------------------------------------------------------------------------------------------------------
Net interest income 2,764 2,801
Provision for loan losses 45 46
- --------------------------------------------------------------------------------------------------------------
Net interest income after provision for loan losses 2,719 2,755
- --------------------------------------------------------------------------------------------------------------
Noninterest income:
Service charges and fees 112 113
Gain on legal settlement -- 600
Other 30 15
- --------------------------------------------------------------------------------------------------------------
Total Noninterest income 142 728
- --------------------------------------------------------------------------------------------------------------
Noninterest expense:
Salaries and benefits839 862
Net occupancy and furniture/equipment expenses 321 307
Data processing services 115 106
FDIC insurance 18 18
Advertising 41 64
Other expenses 422 433
- --------------------------------------------------------------------------------------------------------------
Total noninterest expense 1,756 1,790
- --------------------------------------------------------------------------------------------------------------
Income before federal income tax provision 1,105 1,693
Federal income tax provision 292 475
- --------------------------------------------------------------------------------------------------------------
Net income 813 1,218
==============================================================================================================
Per share information:
Net income $ .92 1.38
Weighted average shares outstanding 884,680 884,680
==============================================================================================================
</TABLE>
2
<PAGE> 5
THE FIRST JERMYN CORP. AND SUBSIDIARIES
Consolidated Statements of Cash Flows
(In thousands of dollars)
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------
Three months ended March 31,
1997 1996
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Operating activities: $ 813 1,218
Net income
Adjustments to reconcile net income to net cash provided by Operating
activities:
Provision for loan losses 45 46
Depreciation and amortization of investment securities, bank
premises, leasehold improvements and furniture and equipment 107 135
Increase in interest receivable and other assets 157 (632)
Decrease in interest payable and other liabilities (399) 234
- ------------------------------------------------------------------------------------------------------------
Net cash provided by operating activities 723 1,001
- ------------------------------------------------------------------------------------------------------------
Investing activities:
Proceeds from maturities of securities 10,198 4,423
Purchases of securities available for sale (3,976) (18,248)
Net (increase) decrease in loans 551 2,628
Purchase of bank premises, leasehold improvements and
furniture and equipment-net (116) (43)
- ------------------------------------------------------------------------------------------------------------
Net cash (used) provided by investing activities 6,657 (11,240)
- ------------------------------------------------------------------------------------------------------------
Financing activities:
Net decrease in noninterest-bearing demand deposits
and interest-bearing deposits (4,796) 8,725
Principal payments on capitalized lease obligation (19) (18)
- ------------------------------------------------------------------------------------------------------------
Net cash used provided by financing activities (4,815) 8,707
- ------------------------------------------------------------------------------------------------------------
(Decrease)Increase in cash and cash equivalents 2,565 (1,532)
Cash and cash equivalents at beginning of year 10,003 14,201
- ------------------------------------------------------------------------------------------------------------
Cash and cash equivalents at end of year $ 12,568 12,669
============================================================================================================
Cash paid during the year:
Interest $ 2,750 2,780
Federal Income Taxes 228 175
============================================================================================================
Noncash transactions
Net unrealized (loss) gain on securities available for sale, net of tax $ 35 (38)
Transfers of loans to real estate owned other than bank premise 140 50
============================================================================================================
</TABLE>
3
<PAGE> 6
FIRST JERMYN CORP. AND SUBSIDIARIES
Notes to Consolidated Financial Statements (unaudited)
- --------------------------------------------------------------------------------
(1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BASIS OF FINANCIAL STATEMENT PRESENTATION
The accompanying consolidated financial statements of First Jermyn
Corp. And subsidiaries (the Company) were prepared in accordance with
instructions to Form 10-QSB, and therefore, do not include information
or footnotes necessary for a complete presentation of financial
position, results of operations and cash flows in conformity with
generally accepted accounting principles. However, all normal,
recurring adjustments which, in the opinion of management, are
necessary for a fair presentation of the financial statements, have
been included. These financial statements should be read in conjunction
with the audited financial statements and the notes thereto included in
the Company's Annual Report for the period ended December 31, 1996. The
results for the three months ended March 31, 1997 are not necessarily
indicative of the results that may be expected for the year ended
December 31, 1997.
BUSINESS
The Company's principal subsidiary, The First National Bank of Jermyn
(the Bank), conducts business from its branch bank system located in
Lackawanna County, Pennsylvania. The Bank is subject to competition
from other financial institutions and other companies which provide
financial services. The Bank is subject to the regulations of certain
federal agencies and undergoes periodic examinations by those
regulatory authorities.
PRINCIPLES OF CONSOLIDATION
The consolidated financial statements include the accounts of all of
the Company's wholly-owned subsidiaries. All significant intercompany
transactions have been eliminated in consolidation. Additionally,
certain reclassifications have been made in order to conform with the
current year's presentation. The accompanying consolidated financial
statements have been prepared on an accrual basis.
(2) EARNINGS PER SHARE
Earnings per share were $.92 and $1.38 for the three-month periods
ended March 31, 1997 and 1996 and was computed based on the weighted
average number of shares outstanding during each period. The Company
has no common stock equivalents.
- --------------------------------------------------------------------------------
4
<PAGE> 7
(3) RECENT ACCOUNTING PRONOUNCEMENTS
In June 1996, the FASB issued SFAS No. 125, Accounting For Transfers and
Servicing of Financial Assets and Extinguishments of Liabilities (SFAS 125).
This statement provides accounting and reporting standards for transfers and
servicing of financial assets and extinguishments of liabilities based on
consistent application of a financial components approach that focuses on
control. It distinguishes transfers of financial assets that are sales from
transfers that are secured borrowings. Under the financial-components approach,
after a transfer of financial assets, an entity recognizes all financial and
servicing assets it controls and liabilities it has incurred, and derecognizes
financial assets it no longer controls and liabilities that have been
extinguished. The approach focuses on the assets and liabilities that exist
after the transfer. If a transfer does not meet the criteria for a sale, the
transfer is accounted for as a secured borrowing with pledge of collateral. The
Company adopted SFAS 125 prospectively, effective January 1, 1997, the required
date of adoption except for those types of transactions for which the provisions
of SFAS 125 have been delayed by the issuance of SFAS 127, Deferral of Certain
Provisions of SFAS 125. The adoption of SFAS 125 did not have a material impact
on the operation, financial condition, or shareholders' equity of the Bank. The
Company has not yet determined the effect that the adoption of those provisions
deferred by SFAS 127 would have on its operation, financial condition and
shareholders' equity, but believes present accounting practices fairly depict
the financial transactions and obligations of the Bank.
In February 1997, the FASB issued SFAS No. 128, Earning Per Share. This
statement establishes standards for computing and presenting earnings per share
(EPS) and applies to entities with publicly held common stock or potential
common stock. This Statement simplifies the standards for computing earnings per
share previously found in APB Opinion NO. 15, Earnings per Share, and makes them
comparable to international EPS standards. It replaces the presentation of
primary EPS with a presentation of basic EPS. It also requires dual presentation
of basic and diluted EPS on the face of the income statement for all entities
with complex capital structures and requires a reconciliation of the numerator
and denominator of the basic EPS computation to the numerator and denominator of
the diluted EPS computation. This Statement is effective for financial
statements issued for periods ending after December 15, 1997, including interim
periods; earlier application is not permitted. This Statement requires
restatement of all prior-period EPS data presented. Because the Company has no
securities which constitute potential common stock, adoption of this statement
will not have any impact on the Company's EPS disclosure.
5
<PAGE> 8
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
Overview
The Company's net income for the three months ended March 31, 1997 was $813,000
or $.92 per share compared to $1,218,000 and $1.38 in the same three-month
period in the preceding year.
The Company recorded an annualized return on average assets of 1.03% for the
three-month period ending March 31, 1997, compared to 1.55% for the same period
in 1996. Return on average equity of 11.37% was recorded for the three-month
period ended March 31, 1997, compared to 18.43% for the same period in l996.
The decrease in net income is primarily attributable to a one time gain on a
legal settlement in the Company's favor of $600,000 which occurred in the first
quarter of 1996. After considering Federal income taxes, this gain added
$396,000 to net income of the Company for the first quarter of 1996. Excluding
this non-recurring gain, the Company's net income for the quarter ended March
31, 1996 would have been $822,000, an amount comparable with the $813,000 net
income for the three months ended March 31, 1997. Management attributes the
decline in net income, excluding the non-recurring gain for the first quarter of
1997 compared to the first quarter of 1996, to the start-up expenses relating to
the opening of its newest office in Daleville.
At March 31, 1997, the Company had total assets of $317 million compared to $322
million at December 31, 1996. This decrease was caused by the maturity of
securities available for sale and investment securities. This decrease of assets
was offset by a decrease in non-interest bearing demand deposit liabilities. The
Company anticipates increasing market penetration through branch expansion. The
branch expansion has continued with the opening of an office in Daleville in
December 1996.
The Company is susceptible to a continued increasing interest rate environment
that may erode the net interest margin. Strategies to enhance earnings and
improve the interest rate exposure of the Company will be considered, such as
the sale of existing mortgage-backed securities available for sale and
purchasing higher yielding, rate sensitive assets with the proceeds.
FINANCIAL CONDITION
CASH AND DUE FROM BANKS AND FEDERAL FUNDS SOLD
Cash and due from banks declined to approximately $6.9 million at March 31, 1997
from $8.1 million at December 31, 1996 due to normal fluctuations resulting from
the conduct of customer business. Federal funds sold increased to $5.7 million
at March 31, 1997 from $1.9 million at December 31, 1996 as the company
experienced increased liquidity resulting from the maturity of securities.
6
<PAGE> 9
SECURITIES
Securities including securities available for sale, mortgage backed securities
available for sale, as well as investment securities, have decreased $6.2
million or 6% to $100.9 million from $107.1 million at December 31, 1996.
This decrease was primarily driven by the maturity of U.S. Treasury securities
with maturities generally less than two years.
LOANS RECEIVABLE, NET
Aggregate loans receivable totaled $192.8 million at March 31, 1997, a decrease
of $0.7 million or 0.4% from $193.5 million at December 31, 1996. The mix of
loans is substantially unchanged at those dates.
NON-PERFORMING ASSETS
The Company's total non-performing assets decreased from $3.7 million or 1.17%
of total assets at December 31, 1996 to $2.9 million or 0.93% of total assets at
March 31, 1997. Loans greater than ninety days delinquent but still accruing
decreased from $468,000 at December 31, 1996 to $226,000 at March 31, 1997.
Real estate owned, increased $200,000 from $199,000 as of December 31, 1996 to
$399,000 as of March 31, 1997, due to the foreclosure of property securing two
credits. There were no significant gains or losses on the sale of real estate
owned during the quarters ended March 31, 1997 and 1996.
<TABLE>
<CAPTION>
3/31/97 12/31/96
---------- ----------
<S> <C> <C>
Nonaccrual 2,322,000 3,080,000
Loans 90 days or more delinquent 226,000 468,000
Restructured -- --
---------- ----------
Total non-performing loans $2,548,000 $3,548,000
Other real estate owned other than
Bank premises 399,000 199,000
---------- ----------
Total non-performing assets $2,947,000 $3,747,000
</TABLE>
At March 31, 1997, the Company's allowance for loan losses amounted to $3.0
million or 1.53% of gross loans receivable. At December 31, 1996, the Company's
allowance for loan losses was $3.11 million or l.57% of gross loans receivable.
7
<PAGE> 10
DEPOSITS
Deposits decreased $4.8 million or 1.7% from $290.1 million at December 31, 1996
to $285.3 million at March 31, 1997. The decrease in deposits was primarily due
to a decrease in noninterest bearing demand deposits. This decrease was caused
by a large commercial customer who temporarily deposited liquidity balances in
their demand account at December 31, 1996.
EQUITY
At March 31, 1997, total equity was $29.5 million or 9.3% of total assets
compared to $28.7 million or 8.9% of total assets as of December 31, 1996. Total
equity increased primarily due to the retention of net income during the
intervening period.
RESULTS OF OPERATIONS
NET INCOME
The Company's net income was $813,000 for the three months ended March 31, 1997,
compared to $1,218,000 recorded in the comparable prior period. Net income for
the first three months of 1997 was below that of 1996 due to a one time gain on
a legal settlement in 1996. In a competitive rate environment, the Company was
able to substantially maintain its level of core earnings as net interest income
after provision for loan losses remained in excess of $2.7 million for the three
months ended March 31, 1997 and 1996. Non interest expense remained relatively
constant at approximately $1.8 million, while the Federal income tax provision
declined.
NET INTEREST INCOME
Net interest income before provision for loan losses amounted to $2.8 million
for the three-month periods ended March 31, 1997 and 1996. Interest income in
1997 decreased for income on securities but was offset by lower interest on
deposits.
Total interest income decreased by $98,000 or 1.7% to $5,567,000 for the three
month period ended March 31, 1997 from $5,665,000 during the comparable prior
period. The decrease was primarily the result of a 12 basis point decline in the
yield earned on average interest-earning assets during the three months ended
March 31, 1997 compared to the 1996 period. However, this was partially offset
by an increase in average interest-earning assets of $4, 156,000 for the three
months ended March 31, 1997 compared to the three months ended March 31, 1996.
Total interest expense decreased by $61,000 or 2.1% to $2,803,000 for the three
months ended March 31, 1997 from $2,864,000 for the comparable prior period. The
decrease was due to a decrease in interest expense associated with deposits,
where the average balance decreased by $1,391,724 during the three months ended
March 31, 1997 compared to the 1996 period. The decrease in interest expense on
deposits was also caused by a 6 basis point decrease in the average rates paid
for the three months ended March 31, 1997 over the comparable 1996 period.
8
<PAGE> 11
PROVISION FOR LOAN LOSSES
The Company establishes a provision for loan losses, which is charged to
operations, in order to maintain the allowance for loan losses at a level which
is deemed to be appropriate based upon an assessment of prior loss experience,
the volume and type of lending presently being conducted by the Company,
industry standards, past due loans, economic conditions in the Company's market
area generally and other factors related to the collectability of the Company's
loan portfolio. For the three-month period ended March 31, 1997, the provision
for loan losses amounted to $45,000 comparable to the $46,000 recorded in the
comparable prior period.
Although management utilizes its best judgment in providing for possible losses,
there can be no assurance that the Company will not have to increase its
provisions for loan losses in the future as a result of the future increases in
non-performing loans or for other reasons which could adversely affect the
Company's results of operations. In addition, various regulatory agencies, as an
integral part of their examination process, periodically review the allowance
for loan losses. Such agencies may require the Company to recognize additions to
the allowance for loan losses based on their judgments of information which is
available to them at the time of their examination.
NONINTEREST INCOME
Noninterest income for the period ending March 31, 1997 decreased approximately
$586,000 to $142,000 from the comparable prior period, primarily due to a
one-time gain on a legal settlement in the Company's favor recognized in the
first quarter of 1996.
NONINTEREST EXPENSES
Noninterest expenses for the period ending March 31, 1997 decreased
approximately 1.9% from the comparable prior period. Salary and benefits
decreased as a result of certain positions temporarily left vacant. Advertising
expense has decreased due to managements efforts to control costs.
INCOME TAXES
Income tax expense totaled $292,000 for the three-month period ended March 31,
1997 compared to $475,000 for the comparable prior period. These amounts
resulted in effective tax rates calculated at 26.4% and 28.1%, respectively. The
decrease in tax expense during the period ending March 31, 1997 was due to a
decrease in income before the federal income tax provision. The 1997 effective
tax rate declined due primarily to a decrease in tax-exempt income as a
percentage of total net income.
CAPITAL ADEQUACY
A strong capital position is important to the continued profitability of the
Company and promotes depositor and investor confidence. The Company's capital
consists of shareholders' equity, which provides a basis for future growth and
expansion and also provides a buffer against unexpected losses.
9
<PAGE> 12
Shareholders' equity increased $848,000 to $29,522,000 at March 31, 1997. It is
management's intention to continue paying a reasonable return on shareholders'
investment while retaining adequate earnings to allow for continued growth.
The Federal Reserve Board measures capital adequacy for bank holding companies
by using a risk-based capital frame-work and by monitoring compliance with
minimum leverage ratio guidelines. The minimum ratio of total risk-based capital
to risk-adjusted assets is 8% at March 31, 1997, of which 4% must be Tier 1
capital. The Company's total risk-based capital ratio was 18.11% at March 31,
1996. The Company's Tier 1 risk-based capital ratio was 16.86% at March 31,
1997.
In addition, the Federal Reserve Board has established minimum leverage ratio
guidelines for bank holding companies. These guidelines provide for a minimum
leverage ratio of 3% for bank holding companies that meet certain criteria,
including that they maintain the highest regulatory rating. All other bank
holding companies are required to maintain a leverage ratio of 3% plus an
additional cushion of at least 100 to 200 basis points. The Federal Reserve
Board has not advised the Company of any specific minimum leverage ratio
applicable to it. The Company's leverage ratio was 9.14% at March 31, 1997.
The Federal Deposit Insurance Corporation Improvement Act (FDICIA) establishes
minimum capital requirements for all depository institutions and established
five capital tiers: "well capitalized", "adequately capitalized,"
"under-capitalized:, "significantly under-capitalized," and "critically
under-capitalized," FDICIA imposes significant restrictions on the operations of
a bank which is not at least adequately capitalized. A depository institutions'
capital tier will depend upon where its capital levels are in relation to
various other capital measures which include a risk-based capital measure, a
leverage ratio capital measure and other factors. Under regulations adopted, for
an institution to be well capitalized it must have a total risk-based capital
ratio of at least 10%, a Tier I risk-based capital ratio of at least 6%, and a
Tier I leverage ratio of at least 5%, and not be subject to any specific capital
order or directive.
At March 31, 1997, the Bank's total risk-based capital, Tier I risk-based
capital and Tier I leverage ratios were 18.11%, 16.86% and 9.14%, respectively.
10
<PAGE> 13
FIRST JERMYN CORP. AND SUBSIDIARIES
March 31, 1997
PART II. OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
None
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
(a): Exhibits:
None
(b): Reports on Form 8-K:
None
11
<PAGE> 14
FIRST JERMYN CORP. AND SUBSIDIARIES
March 31, 1997
SIGNATURES
In accordance with requirement of the Exchange Act, the registrant
caused this report to be signed on its behalf by the undersigned
thereunto duly authorized.
THE FIRST JERMYN CORP.
(Registrant)
Date May 13, 1997 By /s/ William M. Davis
------------ ----------------------------------
William M. Davis
Chairman, President and
Director
(Principal Executive Officer)
Date May 13,1997 By /s/ Martha Myshak
------------ -----------------------------------
Martha Myshak
(Principal Financial Officer
and Treasurer)
Date May 13, 1997 By /s/ Donald J. Gibbs
------------ -----------------------------------
Donald J. Gibbs
(Principal Accounting Officer
and Vice President, Finance /
Control Division Manager)
12
<TABLE> <S> <C>
<ARTICLE> 9
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> MAR-31-1997
<CASH> 6,878
<INT-BEARING-DEPOSITS> 0
<FED-FUNDS-SOLD> 5,690
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 46,285
<INVESTMENTS-CARRYING> 54,578
<INVESTMENTS-MARKET> 55,336
<LOANS> 196,726
<ALLOWANCE> 3,001
<TOTAL-ASSETS> 317,197
<DEPOSITS> 285,319
<SHORT-TERM> 0
<LIABILITIES-OTHER> 1,554
<LONG-TERM> 802
0
0
<COMMON> 1,125
<OTHER-SE> 28,397
<TOTAL-LIABILITIES-AND-EQUITY> 317,197
<INTEREST-LOAN> 3,953
<INTEREST-INVEST> 1,614
<INTEREST-OTHER> 0
<INTEREST-TOTAL> 5,567
<INTEREST-DEPOSIT> 2,783
<INTEREST-EXPENSE> 2,803
<INTEREST-INCOME-NET> 2,764
<LOAN-LOSSES> 45
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 1,756
<INCOME-PRETAX> 1,105
<INCOME-PRE-EXTRAORDINARY> 1,105
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 813
<EPS-PRIMARY> .92
<EPS-DILUTED> .92
<YIELD-ACTUAL> 3.22
<LOANS-NON> 2,322
<LOANS-PAST> 226
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 3,111
<CHARGE-OFFS> 166
<RECOVERIES> 11
<ALLOWANCE-CLOSE> 3,001
<ALLOWANCE-DOMESTIC> 1,420
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 1,581
</TABLE>
