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
[ ] Transition Report Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
For the Transition Period __________________________________
Commission File Number 0-16362
First Franklin Corporation
________________________________________________________
(Exact Name of Registrant as Specified in its Charter)
Delaware 31-1221029
_______________________________ ______________________
(State or Other Jurisdiction of (I.R.S. Employer
Incorporation or Organization) Identification Number)
4750 Ashwood Drive Cincinnati, Ohio 45241
________________________________________ __________
(Address of Principal Executive Offices) (Zip Code)
Registrant's Telephone Number, including Area Code (513) 469-5352
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 twelve months (or for such shorter period that the
Registrant was required to file such reports) and (2) has been subject to such
requirements for the past 90 days.
Yes [X] NO [ ]
As of March 31, 1997, there were issued and outstanding 1,178,343 shares of the
Registrant's Common Stock.
Transitional Small Business Format (check one)
Yes [ ] NO [X]
<PAGE>
FIRST FRANKLIN CORPORATION AND SUBSIDIARY
INDEX
Page No.
Part I Financial Information
Item 1. Consolidated Balance Sheets -
March 31, 1997 and December 31, 1996 ...................... 3
Consolidated Statements of Income and Retained
Earnings - Three Month Periods ended
March 31, 1997 and 1996 ................................... 4
Consolidated Statements of Cash Flows -
Three Month Periods ended March 31, 1997
and 1996 .................................................. 6
Notes to Consolidated Financial Statements ................ 8
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations ................... 9
Part II Other Information .......................................... 14
Item 5. Press Release Dated March 26, 1997 ......................... 15
Press Release Dated April 14, 1997 ......................... 16
Signatures
-2-
<PAGE>
<TABLE>
Part I - Item 1.
FIRST FRANKLIN CORPORATION AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
(Dollars in Thousands)
Mar 31, 1997 Dec 31, 1996
------------ ------------
(Unaudited)
<S> <C> <C>
ASSETS
Cash, including CD's & other interest-earning
deposits of $5,010 and $7,625 at 03/31/97
and 12/31/96, respectively $ 6,903 $ 10,009
Investment securities
Available-for-sale, at market value
(amortized cost of $22,757 and $17,424, respectively) 22,653 17,358
Mortgage-backed securities
Available-for-sale, at market value
(amortized cost of $18,522 and $19,107, respectively) 18,901 19,503
Held-to-maturity, at amortized cost
(market value of $18,490 and 19,249, respectively) 19,126 19,622
Loans receivable, net 152,854 150,135
Real estate owned, net 127 181
Stock in Federal Home Loan Bank
of Cincinnati, at cost 1,780 1,750
Accrued interest receivable 1,328 1,240
Property and equipment, net 1,872 1,900
Other assets 691 604
--------- ---------
$ 226,235 $ 222,302
LIABILITIES
Savings accounts $ 198,819 $ 194,648
Borrowings 6,330 6,423
Advances by borrowers for taxes
and insurance 643 1,066
Other liabilities 494 435
--------- ---------
Total liabilities 206,286 202,572
--------- ---------
STOCKHOLDERS' EQUITY:
Preferred stock; $.01 par value per share;
500,000 shares authorized; no shares issued
Common stock; $.01 par value per share;
2,500,000 shares authorized; 1,324,412
shares issued at 03/31/97 and 1,293,012
at 12/31/96 13 13
Additional paid in capital 6,109 5,952
Treasury stock, at cost- 146,069 and 136,578
shares at 03/31/97 and 12/31/96, respectively (1,298) (1,141)
Unrealized gain on available-for-sale securities,
net of taxes of $94 at 03/31/97 and $112 at 12/31/96 182 218
Retained earnings, substantially restricted 14,943 14,688
--------- ---------
Total stockholders' equity 19,949 19,730
--------- ---------
$ 226,235 $ 222,302
</TABLE>
The accompanying notes are an integral part of the consolidated financial
statements.
-3-
<PAGE>
FIRST FRANKLIN CORPORATION AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME AND RETAINED EARNINGS
(Dollars in Thousands)
For The Three Months Ended
Mar 31, 1997 Mar 31, 1996
------------ ------------
(Unaudited)
Interest income:
Loans receivable $2,942 $2,820
Mortgage-backed securities 634 657
Investment securities 379 362
------ ------
3,955 3,839
Interest expense:
Savings accounts 2,412 2,309
Borrowings 103 119
------ ------
2,515 2,428
------ ------
Net interest income 1,440 1,411
Provision for loan losses 21 21
------ ------
Net interest income after
provision for loan losses 1,419 1,390
------ ------
Noninterest income:
Gain on loans sold 20 13
Service fees on NOW accounts 49 48
Other income 41 65
------ ------
110 126
Noninterest expenses:
Salaries and employee benefits 436 409
Occupancy expense 149 142
Federal insurance premiums 7 105
Service bureau expense 57 69
Other expenses 359 335
------ ------
1,008 1,060
Income before federal income taxes 521 456
Provision for federal income taxes 173 151
------ ------
Net Income $ 348 $ 305
continued
The accompanying notes are an integral part of the consolidated financial
statements.
-4-
<PAGE>
FIRST FRANKLIN CORPORATION AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME AND RETAINED EARNINGS, CONTINUED
(Dollars in Thousands Except per Share Data)
For The Three Months Ended
Mar 31, 1997 Mar 31, 1996
------------ ------------
(Unaudited)
RETAINED EARNINGS-BEGINNING OF PERIOD $ 14,688 $ 14,777
Net income 348 305
Less: dividends declared (93) (83)
-------- --------
RETAINED EARNINGS-END OF PERIOD $ 14,943 $ 14,999
EARNINGS PER COMMON SHARE (in dollars) $ 0.29 $ 0.25
DIVIDENDS DECLARED PER
COMMON SHARE (in dollars) $ 0.08 $ 0.07
The accompanying notes are an integral part of the consolidated financial
statements.
-5-
<PAGE>
<TABLE>
FIRST FRANKLIN CORPORATION AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in Thousands)
For The Three Months Ended
Mar 31, 1997 Mar 31, 1996
------------ ------------
(Unaudited)
<S> <C> <C>
Cash provided by (used in) operating activities:
Net income $ 348 $ 305
Adjustments to reconcile net income to
net cash provided by operating activities:
Provision for loan losses 21 21
Depreciation and amortization 43 57
FHLB stock dividend (30) (29)
Increase in accrued interest receivable (88) (92)
Increase (decrease) in other assets 87 (112)
Increase in other liabilities 59 198
Other, net (80) (257)
Loans sold 1,378 200
Disbursements on loans originated for sale (948) 0
------- --------
Net cash provided by operating activities 790 291
------- --------
Cash provided by (used in) investing activities:
Loan principal reductions 5,228 8,397
Disbursements on mortgage and other
loans purchased or originated for investment (8,398) (11,458)
Repayments on mortgage-backed
securities 1,078 1,651
Purchase of available-for-sale investment securities (8,149) (3,199)
Proceeds from the maturity of available-for-sale
investment securities 2,820 2,500
Sale of Federal Home Loan Bank stock 17
Capital expenditures (37) (1)
------- --------
Net cash used in investing activities (7,458) (2,093)
------- --------
continued
The accompanying notes are an integral part of the consolidated financial
statements.
</TABLE>
-6-
<PAGE>
<TABLE>
FIRST FRANKLIN CORPORATION AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS, CONTINUED
(Dollars in Thousands)
For The Three Months Ended
Mar 31, 1997 Mar 31, 1996
------------ ------------
(Unaudited)
<S> <C> <C>
Cash provided by (used in) financing activities:
Net increase (decrease) in passbook accounts
and demand deposits (1,341) 418
Proceeds from sales of certificates
of deposit 22,032 19,259
Payments for maturing certificates
of deposit (16,520) (17,034)
Repayment of borrowed money (93) (78)
Decrease in advances by borrowers
for taxes and insurance (423) (468)
Payment of dividends (93) (83)
Net cash provided by financing activities 3,562 2,014
-------- --------
Net increase in cash ($ 3,106) $ 212
Cash at beginning of period 10,009 8,653
-------- --------
CASH AT END OF PERIOD $ 6,903 $ 8,865
</TABLE>
The accompanying notes are an integral part of the consolidated financial
statements.
-7-
<PAGE>
FIRST FRANKLIN CORPORATION AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1: BASIS OF PRESENTATION
The accompanying unaudited interim consolidated financial statements have been
prepared in accordance with generally accepted accounting principles for interim
financial information and with the instructions to Form 10-QSB and Rule 10-01 of
Regulation S-X. Accordingly, they do not include all of the information and
footnotes required by generally accepted accounting principles for complete
financial statements. In the opinion of management, all adjustments (consisting
of normal recurring accruals) considered necessary for a fair presentation have
been included. Operating results for the three month period ended March 31, 1997
are not necessarily indicative of the results that may be expected for the full
year. The December 31, 1996 Balance Sheet data was derived from audited
Financial Statements, but does not include all disclosures required by generally
accepted accounting principles.
Effective January 1, 1997 the Company was required to adopt Statement of
Financial Accounting Standards ("SFAS") No. 125 "Accounting for Transfers and
Servicing of Financial Assets and Extinguishments of Liabilities" which
establishes accounting and reporting standards for transfers and servicing of
financial assets and extinguishments of liabilities. The standards are based on
a consistent application of a financial components approach that focuses on
control. Under that approach, after a transfer of financial assets, an entity
recognizes the financial and servicing assets it controls and the liabilities it
has incurred, derecognizes financial assets when control has been surrendered,
and derecognizes liabilities when extinguished. SFAS No. 125 provides consistent
standards for distinguishing transfers of financial assets that are sales from
transfers that are secured borrowings. The adoption of this new accounting
standard did not have a significant impact on the Company's Consolidated
Statement of Operations for the three months ended March 31, 1997.
On March 3, 1997, the Financial Accounting Standards Board ("FASB") issued SFAS
No. 128, "Earnings per Share" which will replace the current presentation of
"primary" and "fully diluted" earnings per share with newly defined "basic" and
"diluted" earnings per share. "Basic" earnings per share will not include
dilutive effect on earnings. "Diluted" earnings per share will reflect the
potential dilution of securities that could share in an enterprises earnings.
The statement will require dual presentation of basic and diluted earnings per
share on the income statement for all entities having complex capital
structures. It is effective for all financial statements issued for periods
ending after December 31, 1997. Management is currently assessing the impact
that adoption will have on the Company's financial statements.
-8-
<PAGE>
Part I - Item 2.
FIRST FRANKLIN CORPORATION AND SUBSIDIARY
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
GENERAL
FIRST FRANKLIN CORPORATION ("Company") is a savings and loan holding company
which was incorporated under the laws of the State of Delaware in September 1987
by authorization of the Board of Directors of the Franklin Savings and Loan
Company ("Franklin"). The Company applied for and received regulatory approval
to acquire all the common stock of Franklin issued in connection with its
conversion from the mutual to stock form of ownership. This conversion was
completed January 25,1988.
The Company's operating philosophy is to be an efficient and profitable
financial services organization with a professional staff committed to
maximizing shareholder value by structuring and delivering quality services that
attract customers and satisfy their needs. Management's goal is to maintain
profitability and a strong capital base. It seeks to accomplish this goal by
pursuing the following strategies; (i) emphasizing lending in the one-to
four-family residential mortgage market, (ii) managing deposit pricing, (iii)
controlling interest rate risk, (iv) controlling operating expenses, (v)
controlling asset growth, and (vi) maintaining asset quality.
As a Delaware corporation, First Franklin is authorized to engage in any
activity permitted by Delaware General Corporation Law. As a unitary savings and
loan holding company, First Franklin is subject to examination and supervision
by the Office of Thrift Supervision ("OTS") , although the Company's activities
are not limited by the OTS as long as certain conditions are met. The Company's
assets consist of cash, investment securities and investments in Franklin and
DirectTeller Systems Inc. ("DirectTeller").
Franklin is an Ohio chartered stock savings and loan headquartered in
Cincinnati, Ohio. It was originally chartered in 1883 as the Green Street Number
2 Loan and Building Company. Franklin operates seven banking offices in Hamilton
County, Ohio through which it offers a wide range of consumer banking services,
including mortgage loans, credit cards, checking accounts, auto loans, savings
and certificate accounts, automated teller machines and a voice response
telephone inquiry system. Franklin also offers mutual funds, annuities and
discount brokerage services in its offices through an agreement with a third
party. The business of Franklin consists primarily of attracting deposits from
the general public and using those deposits, together with borrowings and other
funds, to originate and purchase investments and real estate loans for retention
in its portfolio and sale in the secondary market.
Legislation has been introduced to restructure the federal banking system. Such
legislation might require Franklin to convert to a state savings bank or
national bank charter. As a result, it could become subject to the more
restrictive activity limits imposed on national banks, but it would have a
specified period of time to divest any non-conforming assets. In addition, the
Company might be required to become a bank holding company, which would subject
it to more restrictive activity limits and to capital requirements similar to
those imposed on Franklin. The Company cannot evaluate how this legislation may
impact it until it has been enacted.
Franklin has one wholly-owned subsidiary, Madison Service Corporation
("Madison"). Madison was formed on February 22,1972 to allow Franklin to
diversify into certain types of business which, by regulation, savings and loans
were unable to enter. At the present time, Madison's only activity is its
contract with the third party registered broker dealer that offers brokerage
services at the offices of Franklin. Madison's assets consist solely of cash and
interest-earning deposits.
DirectTeller was formed in 1989 by the Company and DataTech Services, Inc. to
develop and market a voice response inquiry system to allow financial
institution customers to access information about their accounts via the
telephone and/or a facsimile machine. The inquiry system is currently in
operation at Intreive Inc., a computer service bureau which offers the
DirectTeller system to the financial institutions it services. The agreement
with Intrieve gives DirectTeller a percentage of the profits generated by the
inquiry system.
Since the results of operations of Madison and DirectTeller have not been
material to the operations and financial condition of the Company, the following
discussion focuses primarily on Franklin.
-9-
<PAGE>
FINANCIAL CONDITION, LIQUIDITY AND CAPITAL RESOURCES
Consolidated assets increased $3.9 million (1.8%) from $222.3 million at
December 31, 1996 to $226.2 million at March 31, 1997, compared to a $2.5
million (1.2%) increase for the same period in 1996.
Loan disbursements were $9.3 million during the current quarter compared to
$11.5 million during the quarter ended March 31, 1996. During the current
quarter loan sales were $1.4 million. At March 31, 1997, commitments to
originate mortgage loans or purchase mortgage-backed securities were $1.6
million. At the same date, $2.8 million of undisbursed loan funds were being
held on various construction loans. Management believes that sufficient cash
flow and borrowing capacity exists to fund these commitments.
Liquid assets increased $2.2 million during the three months ended March 31,
1997 to $29.6 million. This increase reflects savings deposits of $4.2 million,
loan sales of $1.4 million and loan and mortgage-backed securities repayments of
$6.3 million less loan dibursements of $9.3 million. At March 31, 1997 liquid
assets were 13.1% of total assets, which was above management's target of 8 %.
The Company's investment and mortgage-backed securities are classified based on
its current intention to hold to maturity or have available for sale, if
necessary. The following table shows the gross unrealized gains or losses on
mortgage-backed securities and investment securities as of March 31, 1997.
During the current quarter, there have been no sales of investments or
mortgage-backed securities. No securities are classified as trading.
<TABLE>
Amortized Market Unrealized Unrealized
Cost value Gains Losses
--------- ------ ---------- ----------
(in thousands)
<S> <C> <C> <C> <C>
Available-for-sale
Investment securities $22,757 $22,653 $65 $169
Mortgage-backed securities $18,522 $18,901 $401 $22
Held-to-maturity
Mortgage-backed securities $19,126 $18,490 $0 $636
</TABLE>
At March 31, 1997 savings deposits were $198.8 million compared to $194.6
million at December 31, 1996. This is an increase of $4.2 million during the
current quarter. During the three months ended March 31, 1997, core deposits
(transaction and passbook savings accounts) decreased $1.3 million. During the
same period, short term certificates (two years or less) increased $8.3 million
and certificates with original terms greater than two years decreased $2.8
million. Interest of $2.1 million was credited to accounts during the current
quarter. After eliminating the effect of interest credited, savings increased
$2.1 million during the three months ended March 31, 1997.
At March 31, 1997 borrowings consisted of $6.3 million in fixed-rate Federal
Home Loan Bank advances at an average cost of 6.45%. All advances are being
amortized monthly.
At March 31, 1997, $1.8 million of assets were classified substandard, $341,000
classified loss and $2.0 million classified as special mention compared to $1.4
million as substandard, $344,000 as loss and $2.5 million as special mention at
December 31, 1996. Non-accruing and accruing loans delinquent ninety days or
more were $965,000 at March 31, 1997 and $693,000 at December 31, 1996. At March
31, 1997 the recorded investment in loans for which impairment under SFAS No.
114 has been recognized was immaterial to the Company's financial statements.
In management's opinion, adequate reserves are available to protect against
reasonably foreseeable losses that may occur on loans or repossessed assets. The
following table shows the activity that has occurred on loss reserves during the
three months ended March 31, 1997.
(Dollars in Thousands)
Balance at beginning of period $981
Charge offs 1
Additions charged to operations 21
Recoveries 0
--------
Balance at end of period $1,001
-10-
<PAGE>
The Company's capital supports business growth, provides protection to
depositors, and represents the investment of stockholders on which management
strives to achieve adequate returns. First Franklin continues to enjoy a strong
capital position. At March 31, 1997, net worth was $19.9 million, which is 8.8%
of assets. At the same date, book value per share was $16.93 compared to $17.31
at March 31, 1996. The following table summarizes, as of March 31, 1997, the
regulatory capital position of our subsidiary, Franklin Savings.
<TABLE>
Capital Standard Actual Required Excess Actual Required Excess
------ -------- ------ ------ -------- ------
(Dollars in Thousands)
<S> <C> <C> <C> <C> <C> <C>
Tangible $14,074 $3,309 $10,765 6.38% 1.50% 4.88%
Core $14,074 $6,618 $7,456 6.38% 3.00% 3.38%
Risk-based $14,734 $8,010 $6.724 14.72% 8.00% 6.72%
</TABLE>
RESULTS OF OPERATIONS
Net income increased 14% to $348,000 ($0.29 per share) for the current quarter
compared to $305,000 ($0.25 per share) for the same quarter in 1996.
Net interest income, before provisions for loan losses, increased to $1.44
million for the current quarter compared to $1.41 million during the same period
in 1996. As the tables below illustrate, average interest-earning assets
increased $6.7 million to $217.5 million during the quarter ended March 31, 1997
from $210.8 million for the year ended December 31, 1996. Average
interest-bearing liabilities increased $7.5 million from $195.3 million for the
year ended December 31, 1996 to $202.8 for the current quarter. Thus, average
net interest-earning assets decreased $800,000. The interest rate spread (the
yield on interest-earning assets less the cost of interest-bearing liabilities)
decreased from 2.48% for the year ended December 31, 1996 to 2.31% for the
current three month period. This decrease in the spread reflects an decrease in
the cost of funds from 5.01% for the year ended December 31, 1996 to 4.96% for
the quarter ended March 31, 1997 and a decrease in the yield on interest-earning
assets to 7.27% during the current quarter from 7.49% for the year ended
December 31, 1996. The decrease in the yield on average assets is the result of
adjustable-rate mortgage loans repricing at lower rates.
-11-
<PAGE>
For the Three Months ended
March 31, 1997
Average
Outstanding Yield/cost
($ in thousands)
Average interest-earning assets
Loans $152,116 7.74%
Mortgage-backed securities 38,035 6.82%
Investments 25,604 5.45%
FHLB stock 1,760 6.67%
Total $217,515 7.27%
Average interest-bearing liabilities
Demand deposits $24,690 2.14%
Savings accounts 23,364 2.71%
Certificates 148,392 5.72%
FHLB advances 6,361 6.48%
Total $202,807 4.96%
Net interest-earning assets $14,708 2.31%
For the year ended December 31, 1996
Average
Outstanding Yield/cost
($ in thousands)
Average interest-earning assets
Loans $146,122 8.04%
Mortgage-backed securities 39,976 6.62%
Investments 23,060 5.50%
FHLB stock 1,689 6.99%
Total $210,847 7.49%
Average interest-bearing liabilities
Demand deposits $23,709 2.23%
Savings accounts 24,721 2.76%
Certificates 139,800 5.80%
FHLB advances 7,090 6.47%
Total $195,320 5.01%
Net interest-earning assets $15,527 2.48%
-12-
<PAGE>
Noninterest income for the quarter ended March 31, 1997 was $110,000 compared to
$126,000 for the same quarter in 1996. The decrease in income when comparing the
two periods is the result of decreased loan fees due to the decrease in loan
disbursements and a decline in late charges collected.
Noninterest expenses were $1.01 million for the current quarter compared to
$1.06 million for the three months ended March 31, 1996. As a percentage of
average assets, this is 1.80% for the current quarter compared to 1.98% for the
first quarter of 1996.
-13-
<PAGE>
PART II
FIRST FRANKLIN CORPORATION AND SUBSIDIARY
Item 1. LEGAL PROCEEDING
There are no material pending legal proceedings to which the holding
company or any subsidiary is a party or to which any of their
property is subject.
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
A. Press Release Dated March 26,1997
B. Press Release Dated April 14,1997
Item 6. EXHIBITS AND REPORTS ON FORM 8-K
None
-14-
<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.
FIRST FRANKLIN CORPORATION
/s/ Daniel T. Voelpel
________________________________
Daniel T. Voelpel
Vice President and
Chief Financial Officer
Date: May 1, 1997
First Franklin Corporation
4750 Ashwood Drive Cincinnati, Ohio 45241
(513) 469-8000 Fax (513) 469-5360
April 14, 1997
FOR IMMEDIATE RELEASE
CONTACT: Thomas H. Siemers
President and CEO
(513) 469-8000
First Franklin Corporation, the parent of Franklin Savings and Loan Company,
Cincinnati, Ohio today announced earnings of $348,000 ($0.29 per share) for the
first quarter of 1997. This compares to earnings of $305,000 ($0.25 per share)
for the same period of 1996.
Franklin Savings has seven offices in Greater Cincinnati.
First Franklin Corporation
4750 Ashwood Drive Cincinnati, Ohio 45241
(513) 469-8000 Fax (513) 469-5360
March 26, 1997
FOR IMMEDIATE RELEASE
CONTACT: Thomas H. Siemers
President and CEO
(513) 469-8000
Thomas H. Siemers, President and CEO of First Franklin Corporation, has
announced that the Board of Directors has declared a dividend of $0.08 per share
for the first quarter of 1997. This is the thirty-fourth straight quarterly
dividend declared by the Board. The quarterly dividend will be payable on April
21, 1997 to shareholders of record as of April 4.
First Franklin is the parent organization of Franklin Savings, which has seven
offices in Greater Cincinnati.
<TABLE> <S> <C>
<ARTICLE> 9
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> MAR-31-1997
<CASH> 1,893
<INT-BEARING-DEPOSITS> 5,010
<FED-FUNDS-SOLD> 0
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 41,554
<INVESTMENTS-CARRYING> 19,126
<INVESTMENTS-MARKET> 18,490
<LOANS> 152,854
<ALLOWANCE> 956
<TOTAL-ASSETS> 226,235
<DEPOSITS> 198,819
<SHORT-TERM> 0
<LIABILITIES-OTHER> 1,137
<LONG-TERM> 6,330
0
0
<COMMON> 13
<OTHER-SE> 19,936
<TOTAL-LIABILITIES-AND-EQUITY> 226,235
<INTEREST-LOAN> 2,942
<INTEREST-INVEST> 942
<INTEREST-OTHER> 71
<INTEREST-TOTAL> 3,955
<INTEREST-DEPOSIT> 2,412
<INTEREST-EXPENSE> 2,515
<INTEREST-INCOME-NET> 1,440
<LOAN-LOSSES> 21
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 1,008
<INCOME-PRETAX> 521
<INCOME-PRE-EXTRAORDINARY> 348
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 348
<EPS-PRIMARY> 0.30
<EPS-DILUTED> 0.29
<YIELD-ACTUAL> 2.65
<LOANS-NON> 691
<LOANS-PAST> 274
<LOANS-TROUBLED> 308
<LOANS-PROBLEM> 829
<ALLOWANCE-OPEN> 929
<CHARGE-OFFS> 1
<RECOVERIES> 7
<ALLOWANCE-CLOSE> 956
<ALLOWANCE-DOMESTIC> 376
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 580
</TABLE>
