UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
FOR THE QUARTER ENDED SEPTEMBER 30, 1997
Commission File No. 33-12756-B
COMMUNITY BANCORP, INC.
A Massachusetts Corporation
IRS Employer Identification No. 04-2841993
17 Pope Street, Hudson, Massachusetts 01749
Telephone - (978)568-8321
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 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
----- -----
Common Stock
$2.50 par value
2,926,257 shares outstanding
as of October 28, 1997
<PAGE>
<TABLE>
PART I - FINANCIAL INFORMATION
------------------------------
COMMUNITY BANCORP, INC.
Item 1. CONSOLIDATED BALANCE SHEETS
<CAPTION>
September 30, December 31,
1997 1996
----------- -----------
<S> <C> <C>
ASSETS
Cash and due from banks $ 17,294,064 $ 14,391,567
Federal funds sold 11,000,000 11,300,000
Securities available for sale, at market 32,331,534 29,245,007
Securities held to maturity (market value
$56,244,722 at 9/30/97 and $58,312,349
at 12/31/96) 56,078,927 58,828,881
Loans 142,474,340 131,570,430
Less allowance for possible loan losses 3,298,226 3,481,705
----------- -----------
Total net loans 139,176,114 128,088,725
Premises and equipment, net 4,733,194 4,848,202
Other assets, net 3,464,320 3,300,076
----------- -----------
Total assets $264,078,153 $250,002,458
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Deposits
Noninterest bearing $ 52,010,555 $ 51,358,151
Interest bearing 177,514,307 165,823,718
----------- -----------
Total deposits 229,524,862 217,181,869
Federal funds purchased and securities
sold under repurchase agreements 10,604,702 11,454,687
Other liabilities 1,899,025 1,524,768
----------- -----------
Total liabilities 242,028,589 230,161,324
Stockholders' equity:
Preferred stock, $2.50 par value, 100,000
shares authorized, none issued or outstanding
Common stock, $2.50 par value, 12,000,000
shares authorized (4,000,000 shares
authorized at December 31, 1996),
3,199,218 shares issued, 2,950,558 shares
outstanding, (2,935,012 shares outstanding
at December 31, 1996) 7,998,045 7,998,045
Surplus 414,120 374,580
Undivided profits 15,792,592 13,826,958
Treasury stock, at cost, 248,660 shares,
(264,206 shares at December 31, 1996) (2,237,940) (2,348,419)
Unrealized gains (losses) on securities
available for sale, net 82,747 (10,030)
----------- -----------
Total stockholders' equity 22,049,564 19,841,134
----------- -----------
Total liabilities and
stockholders' equity $264,078,153 $250,002,458
=========== ===========
<FN>
See accompanying notes.
</TABLE>
-2-
<PAGE>
<TABLE>
COMMUNITY BANCORP, INC.
CONSOLIDATED STATEMENTS OF INCOME
<CAPTION>
Three months ended Nine months ended
September 30, September 30,
-------------------- --------------------
1997 1996 1997 1996
--------- --------- --------- ---------
<S> <C> <C> <C> <C>
Interest income:
Interest and fees on loans $3,398,535 $3,107,269 $9,750,798 $9,329,690
Interest and div. on securities:
Taxable interest 1,286,068 1,154,114 3,895,732 3,336,199
Nontaxable interest 85,890 37,470 224,506 82,726
Dividends 15,183 13,654 43,915 40,191
Interest on federal funds sold 98,583 136,197 254,615 438,714
--------- --------- ---------- ----------
Total interest income 4,884,259 4,448,704 14,169,566 13,227,520
--------- --------- ---------- ----------
Interest expense:
Deposits 1,541,319 1,431,519 4,507,856 4,361,959
Short term borrowings 186,332 145,585 549,895 386,417
--------- --------- --------- ---------
Total interest expense 1,727,651 1,577,104 5,057,751 4,748,376
--------- --------- --------- ---------
Net interest income 3,156,608 2,871,600 9,111,815 8,479,144
Provision for loan losses 0 0 0 0
--------- --------- --------- ---------
Net interest income after
provision for loan losses 3,156,608 2,871,600 9,111,815 8,479,144
--------- --------- --------- ---------
Noninterest income:
Merchant credit card assessments 244,933 209,754 737,525 611,136
Service charges 148,999 150,063 464,124 460,183
Other charges, commissions, fees 224,667 207,862 653,022 660,818
Gains on sales of loans, net 10,823 8,243 26,809 28,182
Gains on sales of securities, net 10,463 0 8,599 0
Other 19,039 20,241 60,262 53,378
--------- --------- --------- ---------
Total noninterest income 658,924 596,163 1,950,341 1,813,697
--------- --------- --------- ---------
Noninterest expense:
Salaries and benefits 1,041,578 1,092,523 3,399,152 3,343,202
Data processing 143,251 157,857 434,871 449,126
Occupancy, net 153,029 148,483 428,152 438,049
Furniture and equipment 96,962 89,163 299,941 262,769
Credit card processing 223,687 176,904 629,233 507,048
Other 584,713 419,762 1,723,548 1,354,764
--------- --------- --------- ---------
Total noninterest expense 2,243,220 2,084,692 6,914,897 6,354,958
--------- --------- --------- ---------
Income before income taxes 1,572,312 1,383,071 4,147,529 3,937,883
Income taxes 588,693 543,113 1,563,067 1,541,115
--------- --------- --------- ---------
Net income $ 983,619 $ 839,958 $2,584,192 $2,396,768
========= ========= ========= =========
Earnings per share $ .333 $ .264 $ .878 $ .755
Dividends per share $ .072 $ .064 $ .210 $ .187
Weighted average number of shares 2,950,558 3,181,474 2,942,529 3,173,281
<FN>
See accompanying notes.
</TABLE>
-3-
<PAGE>
<TABLE>
COMMUNITY BANCORP, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
<CAPTION>
Nine months ended
September 30,
-------------------------
1997 1996
-------------------------
<S> <C> <C>
Cash flows from operating activities:
Interest received $14,036,058 $13,214,867
Fees and commissions received 1,945,323 1,762,474
Proceeds from secondary market
mortgage sales 6,722,876 12,744,365
Origination of mortgage loans for
secondary market sales (6,844,261) (11,733,586)
Interest paid (5,093,011) (4,805,589)
Cash paid to suppliers & employees (6,080,188) (5,927,232)
Income taxes paid (1,489,803) (1,392,547)
---------- ----------
Net cash provided by operating activities 3,196,994 3,862,752
---------- ----------
Cash flows from investing activities:
Maturities and principal repayments of
securities available for sale 4,309,414 4,566,287
Maturities and principal repayments of
securities held to maturity 9,848,767 9,966,355
Proceeds from sales of securities available
for sale 2,913,737 0
Proceeds from sales of securities held
to maturity 2,000,000 0
Purchases of securities available for sale (10,068,750) (11,362,861)
Purchases of securities held to maturity (9,180,014) (14,764,819)
Net change in federal funds sold 300,000 12,100,000
Net change in loans and other real estate
owned (11,000,216) (4,122,182)
Proceeds from sale of other real estate
owned 15,600 55,000
Acquisition of property, plant and equipment (476,233) (258,885)
---------- ----------
Net cash (used in) investing activities (11,337,695) (3,821,105)
---------- ----------
Cash flows from financing activities:
Net change in deposits 12,342,993 4,448,398
Net change in federal funds purchased 0 (1,000,000)
Net change in repurchase agreements (849,985) 4,141,346
Purchase of treasury stock 0 (2,318,985)
Sale of treasury stock 150,019 236,137
Dividends paid (599,829) (580,180)
---------- ----------
Net cash provided by financing activities 11,043,198 4,926,716
---------- ----------
Net increase in cash and due from banks 2,902,497 4,968,363
Cash and due from banks at beginning
of period 14,391,567 12,668,446
---------- ----------
Cash and due from banks at end of period $17,294,064 $17,636,809
========== ==========
<FN>
See accompanying notes.
</TABLE>
-4-
<PAGE>
<TABLE>
COMMUNITY BANCORP, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
Reconciliation of Net Income to Net Cash Provided by Operating Activities
<CAPTION>
Nine months ended
September 30,
-------------------------
1997 1996
---------- ----------
<S> <C> <C>
Net income $ 2,584,192 $ 2,396,768
Adjustments to reconcile net income
to net cash provided by operating
activities:
(Increase) decrease in mortgage loans
held for sale (234,321) 763,423
Premium on sale of mortgages 112,935 247,356
Depreciation and amortization 591,241 631,316
Increase (decrease) in other liabilities 243,473 (237,747)
Increase in taxes payable 73,264 148,568
(Decrease) in interest payable (35,260) (57,213)
(Increase) in other assets (5,022) (17,654)
(Increase) in interest receivable (133,508) (12,654)
---------- ----------
Total adjustments 612,802 1,465,984
---------- ----------
Net cash provided by operating activities $ 3,196,994 $ 3,862,752
========== ==========
<FN>
See accompanying notes.
</TABLE>
-5-
<PAGE>
COMMUNITY BANCORP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
SEPTEMBER 30, 1997
________________________________________________________________________
1. BASIS OF PRESENTATION
The accompanying unaudited consolidated financial statements have been
prepared in accordance with generally accepted accounting principles for
interim financial information and with the instructions to Form 10-Q and
Article 10 of Regulation S-X. Accordingly, they do not include all of
the information and notes 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. The
results of operations for any interim period are not necessarily
indicative of results expected for the full year. These consolidated
financial statements should be read in conjunction with the consolidated
financial statements and notes thereto contained in the Company's Annual
Report to shareholders and Form 10-K for the year ended December 31,
1996.
2. EARNINGS PER SHARE (EPS)
In February 1997, Financial Accounting Standards Board Statement No.
128, "Earnings Per Share" (SFAS No. 128) was issued. The Statement is
effective for both interim and annual periods ending after December 15,
1997, and it replaces the presentation of "primary" EPS with a
presentation of "basic" EPS. Basic EPS excludes dilution and is
computed by dividing income available to holders of common stock by the
weighted-average number of common shares outstanding during the period.
The Statement also requires the presentation of diluted EPS, if
applicable, which is computed similarly to "fully diluted" EPS under
existing accounting rules. Restatement of prior years' EPS, if
necessary, is also required by this Statement. The adoption of SFAS
No. 128 by the Company is not expected to have any impact on the
Company's computation of EPS.
3. RECLASSIFICATIONS
Certain amounts in the prior period's financial statements have been
reclassified to be consistent with the current year's presentation.
The reclassifications have no effect on net income.
-6-
<PAGE>
PART I - FINANCIAL INFORMATION
------------------------------
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
Summary
- -------
The Company recorded net income of $2,584,192 for the nine months ended
September 30, 1997, representing an increase of $187,424 or 7.8% over
$2,396,768 for the same period in 1996. Earnings per share of $.878 for
the current period represented an increase of $.123 from $.755 for the nine
months ended September 30, 1996.
The Company recorded net income of $983,619 for the three months ended
September 30, 1997, representing an increase of $143,661 or 17.1% over
$839,958 for the corresponding period in 1996. Earnings per share of $.333
for the current period represented an increase of $.069 from $.264 for the
same period in 1996.
The improvement in net income resulted primarily from an increase in
net interest income and noninterest income, partially offset by increases
in salaries and benefits, furniture and equipment, credit card processing
and other expense.
Deposits of $229,524,862 at September 30, 1997 increased by $12,342,993
or 5.7 % from $217,181,869 at December 31, 1996. The increase in deposits
occurred primarily in the interest bearing categories of NOW accounts, cash
management accounts and certificates of deposit.
Loans of $142,474,340 at September 30, 1997 increased by $10,903,910 or
8.3% from $131,570,430 at December 31, 1996. This increase occurred
primarily in the commercial and home equity portfolios. Noncurrent loans
(nonaccrual loans and loans 90 days or more past due but still accruing)
totaled $817,877 and $1,266,732 at September 30, 1997 and December 31,
1996, respectively. There were no accruing troubled debt restructurings at
September 30, 1997 or December 31, 1996.
Assets of $264,078,153 at September 30, 1997 represented a $14,075,695
or 5.6% increase from $250,002,458 at December 31, 1996.
Nine months ended September 30, 1997 as Compared To
Nine months ended September 30, 1997
---------------------------------------------------
Net Interest Income
- -------------------
Interest income for the nine months ended September 30, 1997 was
$14,169,566, representing an increase of $942,046 or 7.1% from $13,227,520
for the nine months ended September 30, 1996, primarily due to higher loan
and securities balances and higher interest yields on securities in 1997.
Interest expense was $5,057,751, representing an increase of $309,375 or
6.5% from $4,748,376 for the nine months ended September 30, 1996,
primarily due to higher average interest bearing deposit and repurchase
agreement balances in 1997. Net interest income for the nine months ended
September 30, 1997 was $9,111,815, representing an increase of $632,671 or
7.5% from $8,479,144 for the nine months ended September 30, 1996.
-7-
<PAGE>
Noninterest Income and Expense
- ------------------------------
Noninterest income for the nine months ended September 30, 1997 was
$1,950,341, representing an increase of $136,644 or 7.5% from $1,813,697
for the nine months ended September 30, 1996. This increase was primarily
the result of increases in merchant credit card assessments, service
charges, gains on sales of securities and other income, partially offset by
a reduction in other charges, commissions and fees and gains on sales of
loans.
Noninterest expense for the nine months ended September 30, 1997 of
$6,914,897 was up $559,939 or 8.8% from $6,354,958 for the same period in
1996. This increase was primarily the result of increases in salaries and
employee benefits, furniture and equipment, credit card processing and
other expense, partially offset by reductions in data processing expense
and occupancy expense. Included in other expense is approximately $224,000
associated with the name change of the Company's subsidiary from Hudson
National Bank to Community National Bank. The new name became effective on
June 2, 1997.
Provision for Loan Losses
- -------------------------
There was no provision for loan losses for the nine months ended
September 30, 1997 or 1996, reflecting management's continuing evaluation
of the adequacy of the allowance for loan losses and its belief that the
allowance is adequate.
Income Taxes
- ------------
Income tax expense of $1,563,067 for the nine months ended September
30, 1997 compared to $1,541,115 for the same period in 1996, the result of
an increase in taxable income during the current period.
Net Income
- ----------
Net income of $2,584,192 for the first nine months of 1997 represented
an increase of $187,424 or 7.8% from $2,396,768 recorded for the first nine
months of 1996. Earnings per share of $.878 for the current period
represented an increase of $.123 from $.755 for the nine months ended
September 30, 1996.
Three Months ended September 30, 1997 as Compared To
Three Months ended September 30, 1996
----------------------------------------------------
Net Interest Income
- -------------------
Interest income for the three months ended September 30, 1997 was
$4,884,259, representing an increase of $435,555 or 9.8% from $4,448,704
for the three months ended September 30, 1996. The increase was primarily
due to higher loan and securities balances and higher interest yields on
securities in 1997. Interest expense was $1,727,651, representing an
increase of $150,547 or 9.5% from $1,577,104 for the three months ended
September 30, 1996, primarily due to higher interest bearing deposit and
repurchase agreement balances in 1997. Net interest income for the three
months ended September 30, 1997 was $3,156,608, representing an increase of
$285,008 or 9.9% from $2,871,600 for the same period in 1996.
-8-
<PAGE>
Noninterest Income and Expense
- ------------------------------
Noninterest income for the three months ended September 30, 1997 was
$658,924, representing an increase of $62,761 or 10.5% from $596,163 for
the three months ended September 30, 1996. This increase was primarily the
result of increases in merchant credit card assessments, other charges,
commissions and fees, gains on sales of loans and gains on sales of
securities, partially offset by reductions in service charges and other
income.
Noninterest expense for the three months ended September 30, 1997 of
$2,243,220 was up $158,528 or 7.6% from $2,084,692 for the three months
ended September 30, 1996. This increase was primarily the result of
increases in occupancy, furniture and equipment, credit card processing and
other expense, partially offset by a reduction in salaries and employee
benefits and data processing expense. Included in other expense is
approximately $72,000 associated with the name change of the Company's
subsidiary from Hudson National Bank to Community National Bank.
Provision for Loan Losses
- -------------------------
There was no provision for loan losses for the three months ended
September 30, 1997 or 1996, reflecting management's continuing evaluation
of the adequacy of the allowance for loan losses and its belief that the
allowance is adequate.
Income Taxes
- ------------
Income tax expense of $588,693 for the three months ended September 30,
1997 compared to $543,113 for the three months ended September 30, 1996,
the result of an increase in taxable income during the current period.
Net Income
- ----------
Net income of $983,619 for the three months ended September 30, 1997
represented an increase of $143,661 or 17.1% over $839,958 for the three
months ended September 30, 1996. Earnings per share of $.333 for the
current period represented an increase of $.069 from $.264 for the three
months ended September 30, 1996.
Allowance for Possible Loan Losses
- ----------------------------------
The allowance for possible loan losses is maintained at a level
believed by management to be adequate to absorb potential losses in the
loan portfolio. Management's methodology in determining the adequacy of
the allowance considers specific credit reviews, past loan loss experience,
current economic conditions and trends and the volume, growth and
composition of the loan portfolio. Each loan on the Company's internal
Watch List is evaluated periodically to estimate potential losses. For
loans with potential losses, the bank sets aside or "allocates" a portion
of the ALLL against such potential losses. For the remainder of the
portfolio, "unallocated" reserve amounts are determined based on judgments
regarding the type of loan, economic conditions and trends, potential
exposure to loss and other factors. The allowance for possible loan losses
is charged when management determines that the repayment of the principal
on a loan is in doubt. Subsequent recoveries, if any, are credited to the
-9-
<PAGE>
allowance. At September 30, 1997, the balance in the allowance was
$3,298,226, representing 403% of noncurrent loans, compared to $3,481,705
or 275% of noncurrent loans at December 31, 1996.
Securities
- ----------
The Company's securities portfolio consists of obligations of the U.S.
Treasury, U.S. government sponsored agencies, mortgage backed securities
and obligations of various municipalities. Those assets are used in part
to secure public deposits and as collateral for repurchase agreements.
Total securities were $88,410,461 at September 30, 1997, representing
an increase of $336,573 or .4% from $88,073,888 at December 31, 1996. At
September 30, 1997, $32,331,534 in securities were classified as "available
for sale". Sales of securities available for sale totaled $2,913,737, and
sales of securities held to maturity but within ninety days of their
maturity dates totaled $2,000,000, during the nine months ended September
30, 1997.
Liquidity and Capital Resources
- -------------------------------
The Company's primary sources of liquidity are customer deposits,
amortization and pay-offs of loan principal and maturities of investment
securities. These sources provide funds for loan originations, the
purchase of investment securities and other activities. Deposits are
considered a relatively stable source of funds. At September 30, 1997 and
1996, deposits were $229.5 and $211.5 million, respectively. Management
anticipates that deposits will remain relatively stable or grow moderately
during the remainder of 1997.
As a nationally chartered member of the Federal Reserve System, the
Bank has the ability to borrow funds from the Federal Reserve Bank of
Boston by pledging certain of its investment securities as collateral.
Also, the Bank is a member of the Federal Home Loan Bank which provides
additional borrowing opportunities.
On September 15, 1997, the Company implemented an Offer to Purchase up
to 125,000 shares of its outstanding common stock at a price of $12.00 per
share, as filed with the Commission on Schedule 13E-4. The Offer expired
at 5:00 p.m. E.D.T., on October 15, 1997, with 24,301 shares tendered and
accepted by the Company. As a result of the repurchase of shares, the
Company's capital was reduced by $291,612.
Bank regulatory authorities have established a capital measurement tool
called "Tier 1" leverage capital. A 4.00% ratio of Tier 1 capital to
assets now constitutes the minimum capital standard for most banking
organizations. At September 30, 1997, the Company's Tier 1 leverage
capital ratio was 8.32%. Regulatory authorities have also implemented
risk-based capital guidelines requiring a minimum ratio of Tier 1 capital
to risk weighted assets of 4.00% and a minimum ratio of total capital to
risk-weighted assets of 8.00%. At September 30, 1997 the Company's Tier 1
and total risk-based capital ratios were 14.40% and 15.67%, respectively.
The Bank is categorized as "well capitalized" under the Federal Deposit
Insurance Corporation Improvement Act of 1991 (F.D.I.C.I.A.).
On September 16, 1997, the Company's Board of Directors declared a
third quarter 1997 cash dividend of $.072 per share of common stock to
shareholders of record at September 1, 1997, payable on October 15, 1997.
-10-
<PAGE>
Asset/Liability Management
- --------------------------
The Company has an asset/liability management committee which oversees
all asset/liability activities of the Company. The committee establishes
general guidelines each year and meets regularly to review the Company's
operating results and to make strategic changes when necessary.
It is the Company's general policy to reasonably match the rate
sensitivity of its assets and liabilities. A common benchmark of this
sensitivity is the one year gap position, which is a reflection of the
difference between the speed and magnitude of rate changes of interest rate
sensitive liabilities as compared with the Bank's ability to adjust the
rates of it's interest rate sensitive assets in response to such changes.
The Company's positive cumulative one year gap position at September 30,
1997, representing the excess of repricing assets versus repricing
liabilities within a one year time frame, was 2.7% of total assets.
-11-
PART II - OTHER INFORMATION
---------------------------
Item 5. OTHER INFORMATION
On September 15, 1997, the Company implemented an Offer to Purchase up
to 125,000 shares of its outstanding common stock at a price of $12.00
per share, as filed with the Commission on Schedule 13E-4. The Offer
expired at 5:00 p.m. E.D.T., on October 15, 1997, with 24,301 shares
tendered and accepted by the Company. As a result of the repurchase
of shares, the Company's capital was reduced by $291,612.
On September 16, 1997, the Company's Board of Directors declared a
third quarter 1997 cash dividend of $.072 per share of common stock to
shareholders of record at September 1, 1997, payable on October 15,
1997.
Item 6. EXHIBITS AND REPORTS ON FORM 8-K
(b) The Company did not file a Form 8-K during the quarter ended September
30, 1997.
-12-
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.
COMMUNITY BANCORP, INC.
-----------------------
Date: October 28, 1997 By: /s/ James A. Langway
-------------------------
James A. Langway
President & Chief Executive Officer
Principal Executive Officer
Date: October 28, 1997 By: /s/ Donald R. Hughes, Jr.
-------------------------
Donald R. Hughes, Jr.
Treasurer and Clerk,
Principal Financial Officer and
Principal Accounting Officer
-13-
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 9
<LEGEND>
This schedule contains summary financial information extracted from the
unaudited September 30, 1997 financial statements of Community Bancorp, Inc.
and is qualified in its entirety by reference to such financial statements.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> SEP-30-1997
<CASH> 17294064
<INT-BEARING-DEPOSITS> 0
<FED-FUNDS-SOLD> 11000000
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 32331534
<INVESTMENTS-CARRYING> 56078927
<INVESTMENTS-MARKET> 56244722
<LOANS> 142474340
<ALLOWANCE> 3298226
<TOTAL-ASSETS> 264078153
<DEPOSITS> 229524862
<SHORT-TERM> 10604702
<LIABILITIES-OTHER> 1899025
<LONG-TERM> 0
<COMMON> 7998045
0
0
<OTHER-SE> 14051519
<TOTAL-LIABILITIES-AND-EQUITY> 264078153
<INTEREST-LOAN> 9750798
<INTEREST-INVEST> 4164153
<INTEREST-OTHER> 254615
<INTEREST-TOTAL> 14169566
<INTEREST-DEPOSIT> 4507856
<INTEREST-EXPENSE> 5057751
<INTEREST-INCOME-NET> 9111815
<LOAN-LOSSES> 0
<SECURITIES-GAINS> 8599
<EXPENSE-OTHER> 6914897
<INCOME-PRETAX> 4147529
<INCOME-PRE-EXTRAORDINARY> 4147529
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 2584192
<EPS-PRIMARY> .878
<EPS-DILUTED> .878
<YIELD-ACTUAL> 5.29
<LOANS-NON> 655367
<LOANS-PAST> 162510
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 3481705
<CHARGE-OFFS> 262637
<RECOVERIES> 79158
<ALLOWANCE-CLOSE> 3298226
<ALLOWANCE-DOMESTIC> 1664753
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 1633473
</TABLE>
