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 six months ended June 30, 1995
Commission file number 33-17172
Matewan BancShares, Inc.
(Exact name of registrant as specified in its charter)
Delaware 55-0639363
(State or other jurisdiction of (I.R.S Employer
incorporation or organization) Identification No.)
Box 100
Second Avenue and Vinson Street
Williamson, West Virginia 25661
(Address of principal executive offices) (Zip Code)
304 235-1544
(registrant's telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by section13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months (or
for such shorter periods that the registrant was required to file
reports), and (2) has been subject to such filing requirements for
the past 90 days. Yes X No
APPLICABLE ONLY TO CORPORATE ISSUERS
Indicate the number of shares outstanding of each of the issuer's
classes of common stock, as of the latest practical date.
Common Stock, $1 Par Value - 3,668,351 shares as of June 30, 1995
Matewan BancShares, Inc.
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements (Unaudited)
Consolidated balance sheets - June 30, 1995, June 30, 1994,
and December 31, 1994
Consolidated statements of income - Six months and three
months ended June 30, 1995 and June 30, 1994
Consolidated statement of changes in shareholders' equity
for the six months ended June 30, 1995 and 1994
Consolidated statements of cash flows for the six months
ended June 30, 1995 and 1994
Notes to consolidated financial statements
Item 2. Manangement's Discussion and Analysis of Financial
Condition and Results of Operations
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
SIGNATURES
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
MATEWAN BANCSHARES, INC. AND SUBSIDIARIES
(dollars in thousands, except for per share data)
June 30 December 31 June 30
ASSETS 1995 1994 1994
Cash and due from banks $20,342 $20,539 $16,028
Federal funds sold 11,377 4,770 16,735
Cash and cash equivalents 31,719 25,309 32,763
Interest bearing deposits
in other banks 3,132 2,876 3,557
Investment securities:
Available-for-sale at
fair value 6,970 11,051 8,872
Held-to-maturity at cost 100,210 98,930 94,044
(Approximate fair value
$101,031 at June 30,
1995; $95,904 at
December 31, 1994; and
$93,715 at June 30, 1994)
Loans - net 221,944 214,744 202,689
Premises and equipment 9,383 9,252 8,455
Accrued interest receivable
and other assets 9,982 9,248 7,975
TOTAL ASSETS $383,340 $371,410 $358,355
======== ======== ========
See Accompanying Notes to Consolidated Financial Statements
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
MATEWAN BANCSHARES, INC. AND SUBSIDIARIES
(dollars in thousands, except per share data)
June 30 December 31 June 30
LIABILITIES AND 1995 1994 1994
SHAREHOLDERS'EQUITY
Deposits:
Non-interest bearing $42,451 $44,130 $42,981
Interest bearing 270,350 266,517 262,334
TOTAL DEPOSITS 312,801 310,647 305,315
Short-term borrowings:
Repurchase agreements 14,706 12,089 7,143
Other 8,722 2,908 4,735
TOTAL SHORT TERM
BORROWINGS 23,428 14,997 11,878
Accrued interest payable
and other liabilities 3,478 3,963 1,212
TOTAL LIABILITIES 339,707 329,607 318,405
SHAREHOLDERS' EQUITY
Preferred stock
$1 par value; 1,000,000 shares
authorized; none issued
Common Stock - $1 par value 3,684 3,349 3,349
10,000,000 shares authorized;
3,684,104 shares outstanding at
June 30, 1995, and 3,349,344
shares outstanding December 31,
1994, and June 30, 1994, including
15,753, 15,640, and 14,640 shares
in treasury stock
Surplus 12,182 6,460 6,460
Retained earnings 27,893 32,185 30,188
Treasury stock (57) (48) (30)
Net unrealized loss on
available-for-sale
securities, net of income (69) (143) (17)
TOTAL SHAREHOLDERS' EQUITY 43,633 41,803 39,950
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $383,340 $371,410 $358,355
======== ======== ========
See Accompanying Notes to Consolidated Financial Statements
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
MATEWAN BANCSHARES, INC. AND SUBSIDIARIES
(dollars in thousands, except per share data)
Six months ended Three months
ended
June 30, June 30, June 30,
June 30,
1995 1994 1995
1994
INTEREST INCOME
Interest and fees on loans $12,221 $10,265 $6,262
$5,185
Interest and dividends
on investment securities:
Taxable 3,029 3,086 1,556
1,531
Tax-exempt 61 23 34
12
Other interest income 298 314 152
189
TOTAL INTEREST INCOME 15,609 13,688 8,004
6,917
INTEREST EXPENSE
Deposits 5,755 4,851 2,997
2,428
Short-term borrowings 282 164 140
124
TOTAL INTEREST EXPENSE 6,037 5,015 3,137
2,552
NET INTEREST INCOME 9,572 8,673 4,867
4,365
PROVISION FOR LOAN LOSSES 829 933 484
481
NET INTEREST INCOME AFTER
PROVISION FOR LOAN LOSSES 8,743 7,740 4,383
3,884
OTHER INCOME
Service fees 816 801 432
542
Other 421 230 220
12
Credit life insurance
commissions 273 332 139
213
TOTAL OTHER INCOME 1,510 1,363 791
767
OTHER EXPENSES
Salaries and employee
benefits 3,008 2,480 1,553
1,243
Net occupancy 497 426 258
268
Advertising 347 246 207
49
Federal deposit insurance 392 378 197
186
Other 2,273 1,977 1,159
1,028
TOTAL OTHER EXPENSE 6,517 5,507 3,374
2,774
INCOME BEFORE INCOME TAXES 3,736 3,596 1,800
1,877
APPLICABLE INCOME TAXES 1,332 1,288 635
648
NET INCOME $2,404 $2,308 $1,165
$1,229
====== ====== ======
======
Net income per share $.65 $.63 $.32
$.33
====== ====== ======
======
Average common shares
outstanding 3,667,500 3,668,174 3,668,304
3,668,174
========= ========= =========
=========
See Accompanying Notes to Consolidated Financial Statements
CONSOLIDATED STATEMENTS OF CHANGE IN SHAREHOLDERS' EQUITY (UNAUDITED)
MATEWAN BANCSHARES, INC. AND SUBSIDIARIES
(dollars in thousands, except per share data)
Net
Unrealized
Loss on
Available-
Common Capital
Retained Treasury for-Sale
Stock Surplus
Earnings Stock Securities Total
Balance January 1, 1994 $837 $8,972
$28,322 ($30) ($69) $38,032
Adjustment to beginning balance for
change in accounting method, net
of deferred income taxes
127 127
Change in net unrealized loss on
available-for-sale securities, net of
income tax effect of $38 0 0
0 0 (75) (75)
Dividends on Common Stock 0 0
(442) 0 0 (442)
($.1204 per share)
Net income 0 0
2,308 0 0 2,308
Four-for-one stock split in the form of
a 300% stock dividend 2,512 (2,512)
0 0 0 0
Balance June 30, 1994 $3,349 $6,460
$30,188 ($30) ($17) $39,950
====== =======
======= ====== ==== =======
Net
Unrealized
Loss on
Available-
Common Capital
Retained Treasury for-Sale
Stock Surplus
Earnings Stock Securities Total
Balance January 1, 1995 $3,349 $6,460
$32,185 ($48) ($143) $41,803
Treasury Stock Purchases 0 0
0 (35) (35)
Treasury Stock Sales 0 31
0 26 57
Change in net unrealized loss on
available-for-sale securities, net of
deferred income taxes 0 0
0 0 74 74
Dividends on Common Stock 0 0
(667) 0 0 (667)
($.1818 per share)
Net income 0 0
2,404 0 0 2,404
Common Stock Dividend (10%) 335 5,691
(6,026) 0 0 0
Cash paid on fractional shares 0 0
(3) 0 0 (3)
Balance June 30, 1995 $3,684 $12,182
$27,893 ($57) ($69) $43,633
====== ======
======= ====== ==== =======
See Accompanying Notes to Consolidated Financial Statements
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
MATEWAN BANCSHARES, INC. AND SUBSIDIARIES
(dollars in thousands, except per share data)
For the six months ended
June 30, June 30,
1995 1994
OPERATING ACTIVITIES
NET INCOME $2,404 $2,308
ADJUSTMENTS TO RECONCILE NET INCOME
TO NET CASH PROVIDED BY OPERATING
ACTIVITIES:
DEPRECIATION 343 316
AMORTIZATION 293 277
PROVISION FOR LOAN LOSSES 829 933
PROVISION FOR DEFERRED TAXES 33 25
NET CHANGE IN ACCRUED INTEREST
RECEIVABLE AND OTHER ASSETS (842) 12
NET CHANGE IN ACCRUED INTEREST
PAYABLE AND OTHER LIABILITIES (583) (935)
NET CASH PROVIDED BY OPERATING ACTIVITIES 2,477 2,936
INVESTING ACTIVITIES
PROCEEDS FROM MATURITIES OF
AVAILABLE-FOR-SALE SECURITIES 7,261 7,000
PROCEEDS FROM MATURITIES OF
HELD-TO-MATURITY SECURITIES 24,540 17,841
PURCHASES OF AVAILABLE-FOR-SALE
SECURITIES (3,034) (4,004)
PURCHASES OF HELD-TO-MATURITY
SECURITIES (25,990) (24,173)
NET INCREASE IN INTEREST BEARING
DEPOSITS IN OTHER BANKS (256) (3,555)
NET CHANGE IN LOANS (8,029) (7,769)
PURCHASES OF PREMISES
AND EQUIPMENT (639)
(1,137)
SALES OF PREMISES
AND EQUIPMENT 165 0
NET CASH USED IN INVESTING
ACTIVITIES (5,982) (15,797)
FINANCING ACTIVITIES
NET CHANGE IN DEPOSITS 2,154 14,162
NET CHANGE IN SHORT-TERM
BORROWINGS 8,431 288
CASH DIVIDENDS PAID (670) (442)
NET CASH PROVIDED BY
FINANCING ACTIVITIES 9,915 14,008
NET CHANGE IN CASH AND CASH EQUIVALENTS 6,410 1,147
CASH AND EQUIVALENTS AT BEGINNING OF YEAR 25,309 31,616
CASH AND EQUIVALENTS AT END OF PERIOD $31,719 $32,763
========== ==========
See Accompanying Notes to Consolidated Financial Statements
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
MATEWAN BANCSHARES, INC. AND SUBSIDIARIES
JUNE 30, 1995
(Dollars in thousands, except for share data)
1. 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-Q and Article 10 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
interim period are not necessarily indicative of the results that may
be expected for the year ending December 31, 1995. For further
information, refer to the consolidated financial statements and
footnotes thereto included in Matewan BancShares, Inc. and
Subsidiaries' annual report on Form 10-K for the year ended December
31, 1994.
2. The financial statements presented herein include Matewan
BancShares, Inc. and its consolidated subsidiaries, The Matewan
National Bank, Matewan Bank FSB, and Matewan Venture Fund, Inc.
3. The Company adopted Financial Accounting Standards Board Statement
No. 114, "Accounting by Creditors for Impairment of a Loan," on
January 1, 1995. Statement No. 114 requires that impaired loans be
measured based on the present value of expected future cash flows
discounted at the loan's effective interest rate or, as a practical
expedient, at the loan's observable market price or fair value of
collateral if the loan is collateral dependent. The adoption and
implementation of this standard has not had a material effect on the
Company's financial statement.
At June 30, 1995, the recorded investment in impaired loans under FASB
114 was $3,841 (of which $622 were on a nonaccrual basis). Included in
this amount is $1,441 of impaired loans for which the related
allowance for credit losses is $545 and $2,420 of impaired loans that
do not have a specific allowance for credit losses.
4. On May 9, 1995, the Board of Directors of Matewan BancShares, Inc.
authorized a ten percent (10%) common stock dividend to shareholders
of record as of June 1, 1995. Average shares outstanding and per share
amounts included in the consolidated financial statements and
footnotes have been adjusted for this stock dividend.
MATEWAN BANCSHARES, INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
(Dollars in thousands, except for share data)
FINANCIAL CONDITION
Total assets and total deposits at June 30, 1995 increased
approximately $11,930 and $2,154, respectively, since December 31,
1994. Year end figures for both categories included a $4,000 short
term commercial deposit that was not expected to remain beyond January
of the current year. Consequently, actual core growth in both
categories in the first half of 1995 was stronger than period end
comparisons might suggest. Total assets and deposits at June 30, 1995
increased approximately $24,985 and $7,486, respectively, in the one
year period since June 30, 1994. This level of growth and the
corresponding asset mix reflect the effects of both the Company's
market expansion efforts and increased loan demand in the Company's
core markets over this period of time. Deposit growth of approximately
$7,486, short term borrowing growth of $11,050,and equity growth of
approximately $3,683 provided funding for most of the asset growth
since June 30, 1994.
A comparison of the Company's balance sheet at June 30, 1995 with the
balance sheet at June 30, 1994 reflects several notable trends. Net
loans have increased approximately $19,255 in year ended June 30,
1995, reflecting an increase in the composition level of loans to
assets to 57.9% from 56.5%. In the six month period ended June 30,
1995, net loans increased $7,200. The composition level of loans to
assets of 57.8% was unchanged over this time. Increasing market
penetration, new market expansion, and generally increasing loan
demand over these respective intervals of time represent the major
reasons for this increase. Deposit and short term borrowing growth of
approximately $19,036 in the year ended June 30, 1995 and $10,585 in
the six months ended June 30, 1995, provided the funding over these
respective time intervals. Investment securities increased
approximately $4,264 over the same annual interval, but their
composition of total assets decreased to 27.9% from 28.7%. In the
first six months of 1995, investment securities decreased $2,801 from
29.6% of total assets. Cash and cash equivalents decreased
approximately $1,044 and interest bearing deposits in other banks
decreased approximately $425 in the annual period ended June 30, 1995.
Federal funds sold, a component of cash equivalents, also experienced
a decrease of $5,358 over the same period. With loan demand strong and
yields on investment securities more attractive over this period, the
Company found more attractive vehicles for deploying its funds.
Premises and equipment increased approximately $928 or nearly 11% over
this time period. Commmencement of operations at two Matewan Bank FSB
facilities, establishment of two offices in supermarket locations, and
relocation of the principal executive, lending, and collection offices
account for most of the increase. In addition, with the outsourcing of
the Company's data processing and item processing functions in the
second quarter of 1995, the Company incurred some one time
expenditures related to data communication equipment.
Deposits increased approximately $7,486 (2.5%) and short term
borrowings approximately $11,550 (97.2%)in the twelve month period
ended June 30, 1995. For the six month period ended June 30, 1995,
total deposits increased $2,154. Noninterest bearing deposits
decreased $530 (1.2%) and interest bearing deposits increased
approximately $8,016 (3.1%) over the annual period. Noninterest
bearing deposits decreased $1,679 and interest bearing deposits
increased $3,833 in the six month period ended June 30, 1995. Both
depository subsidiaries of the Company have interest rate structures
that offered rates consistently competitive with other deposit
products available in the marketplace over this same time period. The
Company's deposit pricing posture enabled it to insulate its earnings
from rising interest rate pressures. The increase in short term
borrowings over this time period was attributable to such factors as
the inherent volatility in these types of funds (primarilly tax
deposits), the increasing placement of public funds in accounts of
this nature, and increasing utilization of funds made available to
Company affiliates as members of the Federal Home Loan Bank system.
Other liabilities increased approximately $2,266 in the same annual
period, although they have experienced an actual $485 decline in the
six month period since December 31, 1994.
Internal capital retention permitted equity growth of approximately
$3,683 from June 30, 1994 through June 30, 1995. Equity capital as a
percentage of total assets increased to 11.4% from 11.2% over the same
period. The percentage on December 31, 1994 was 11.25%. In the six
month period ended June 30, 1995, equity growth of $1,830 was
experienced. The Company is now required to meet certain regulatory
capital requirements for capital on a risk-adjusted basis. Risk
adjustment allows for the inclusion of off-balance sheet items such as
unused credit commitments, exclusion of certain no-risk assets, as
well as the inclusion of other factors that may cause additional risk
to the Company. The Company's risk-weighted capital to risk-weighted
asset percentage was 19.21% on June 30, 1995, 19.07% on June 30, 1994
and 19.23% on December 31, 1994.
On January 10, 1995, the Board of Directors authorized the Company to
purchase and hold an additional 100,000 shares of its own Common
Stock. Treasury Stock transactions may be made from time to time,
subject to regulatory requirements, in the open market or in privately
negotiated transactions. Treasury shares may be used from time to time
for various corporate purposes.
On January 18, 1995 Matewan Bank FSB filed applications with the
Office of Thrift Supervision to establish branch offices in two
supermarkets in Pikeville, Kentucky and Goody, Kentucky. On May 19,
1995 the office in the Goody location opened for business. The
Pikeville office commenced operation on June 26, 1995.
On February 14, 1995, the Company executed a contract with Electronic
Data Services, Inc. ("EDS"). Although the immediate objective of the
agreement was the outsourcing of the core back-office and data
processing operations of the Company, the strategic implications of
the association with EDS for the Company are more broad. A worldwide
leader in providing technology driven solutions in industries far
removed from the Company, EDS will provide both technology and
expertise on a much wider and diverse scale than previously available
to the Company. Access to and employment of EDS technology and
expertise will enable the Company to concentrate on growing its
customer base and expanding market share. Effective management of this
technology will supply the basis for a wider and more diverse range of
product offerings. It will also provide state of the art delivery
systems that should provide the Company with a substantial competitive
advantage in any market that it chooses to operate. However, the most
immediate effect may be that the Company experiences some near term
increases in data processing related expenses.
MATEWAN BANCSHARES, INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
SUMMARY
Net income for the first six months of 1995 was approximately $2,404,
or $.65 per share, as compared to $2,308, or $.63 per share for the
same period in 1994. Return on Average Assets was 1.30% and 1.31% for
the six month period ended June 30, 1995 and June 30, 1994,
respectively. Return on Average Equity was 11.41% and 11.93% for the
same respective time periods. Net income for the second quarter of
1995 was $1,165 compared to $1,229 for the second quarter of 1994.
RESULTS OF OPERATIONS
Net interest income was $9,572 for the six month period ended June 30,
1995 as compared to $8,673 for the six month period ended June 30,
1994. This increase of approximately $899 was attributable to a
combination of the Company managing to hold its cost of funds
relatively steady in a rising interest rate environment during much of
1995 and employment of increasingly aggressive pricing in its loan
portfolio. Net interest income for the second quarter of 1995 was
$4,867 as compared to $4,365 for the second quarter of 1994. Under
normal circumstances, in a rising interest rate environment, an
institution that is liability sensitive in the short run would expect
an unfavorable reaction in net interest income as interest-bearing
liabilities reprice at higher rates faster than interest-earning
assets reprice. Because the Company has exercised extreme vigilance in
maintaining its funds pricing positions, as interest rates increased,
net interest income was not as vulnerable to erosion as might have
been expected. Actual Net Interest Margin (net interest income divided
by average earning assets) for the six months ended June 30, 1995 was
5.73% versus 5.41% for the same period in 1994. Net interest margin
for the second quarter of 1995 was 5.77% versus 5.44% for the second
quarter of 1994. The Company continues to be liability sensitive and
accordingly future increases in market interest rates would generally
adversely impact net interest income, while decreases in market
interest rates would generally have a positive impact.
The Company's provision for loan losses for the six months ended June
30, 1995 was approximately $104 lower than for the same period in
1994. Second quarter of 1995 provision was $484 as compared to $481
for the second quarter of 1994. Non-performing assets (loans past due
greater than ninety days, nonaccrual loans, and other real estate
owned) approximated 2,799 on June 30, 1995 versus $2,663 on June 30,
1994. Management has analyzed and evaluated the condition of the loan
portfolio, has made provision for known of anticipated losses, and
does not anticipate any further significant losses. The percentage of
allowance for loan losses to total non-performing assets was 99.89%
and 123.92% at June 30, 1995 and 1994, respectively.
Non-interest income increased $147 (10.8%) during the first six months
of 1995 when compared to the same period in 1994. For the respective
second quarters, non-interest income increased $24. Service fees and
other fees generally increased in the current year due to both normal
business growth and expansion realized in the markets served by
Matewan Bank FSB. Commissions attributable to sales of other financial
services increased approximately $134 in the first half of 1995 over
the first half of 1994 due to the growth in the Bank's financial
services division. Weaker sales of credit insurance in the first half
of 1995 translated into commissions approximately $59 lower than for
the same period in 1994.
Non-interest expenses increased $1,010 for the first six months of
1995 over the same period in 1994 and increased $600 for the second
quarter of 1995 over the second quarter of 1994. Most of this increase
was related to start-up and operating expenses incurred in 1995
related to opening the second office of Matewan Bank FSB and its two
supermarket offices. Higher personnel, marketing, and occupancy
expenses, in particular were experienced.
In comparing the six month period ended June 30, 1995 and June 30,
1994, respectively, net income before taxes decreased $140 (3.9%). A
comparison of respective quarters indicates a decrease of $77 in the
second quarter of 1995. Applicable income taxes increased by $44 or
3.4% for the six month period and decreased $13 or 2.0% for the
quarterly period. The effective income tax rate for the first six
months of 1995 was 35.65% versus 35.82% for the first six months of
1994. This decrease reflects both a change in composition of the
Company's earnings and favorable tax effects attributable to Matewan
Bank FSB. Net income after taxes increased $96 or 4.2% for the six
months ended June 30, 1995 over the same period for 1994. For the
second quarter of 1995, net income decreased $64 from the second
quarter of 1994.
Analysis of the allowance for Loan Losses (Unaudited)
MATEWAN BANCSHARES, INC AND SUBSIDIARIES
(Amounts listed in thousands)
Six months ended
Year-to-date amounts listed through June 30, June 30,
1995 1994
Balance at begining of period $2,932 $2,961
Loans charged-off (1,212) (725)
Recoveries 247 131
Provision for loan losses 829 933
Balance at the end of period $2,796 $3,300
===== =====
Non-performing assets $2,799 $2,663
Ratio of allowance for loan losses
to non-performing loans 99.89% 123.92%
MATEWAN BANCSHARES, INC.
EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibit 11
Exhibit 27 Financial Data Schedule
Information included in EX-27 is incorporated herein by reference.
(b) None
EXHIBIT 11
Computation of Earnings per Share
(dollars in thousands, except shares and per share data)
For the Six Months For the Three Months
June 30 June 30
1995 1994 1995 1994
PRIMARY:
Average shares outstanding 3,684,104 3,684,104 3,684,104 3,684,104
Impact of Treasury Shares 16,604 15,930 15,800 15,930
Total 3,667,500 3,668,174 3,668,304 3,668,174
Net Income $2,404 $2,308 $1,165 $1,229
Per Share Amount $.65 $.63 $.32 $.33
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.
MATEWAN BANCSHARES, INC.
(Registrant)
July 15, 1995 By: /s/Dan R. Moore
Dan R. Moore
Chairman of the Board of Directors
and President
July 15, 1995 By: /s/Lee M. Ellis
Lee M. Ellis
Vice President & Chief Financial Officer
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 9
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> SECOND QUARTER
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> JUN-30-1995
<CASH> 20,342
<INT-BEARING DEPOSITS> 3,132
<FED-FUNDS-SOLD> 11,377
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 6,970
<INVESTMENTS-CARRYING> 100,210
<INVESTMENTS-MARKET> 101,031
<LOANS> 224,740
<ALLOWANCE> 2,796
<TOTAL-ASSETS> 383,340
<DEPOSITS> 312,801
<SHORT-TERM> 23,428
<LIABILITIES-OTHER> 3,478
<LONG-TERM> 0
<COMMON> 3,684
0
0
<OTHER-SE> 39,949
<TOTAL-LIABILITIES-AND-EQUITY> 383,340
<INTEREST-LOAN> 12,221
<INTEREST-INVEST> 3,090
<INTEREST-OTHER> 298
<INTEREST-TOTAL> 15,609
<INTEREST-DEPOSIT> 5,755
<INTEREST-EXPENSE> 6,037
<INTEREST-INCOME-NET> 9,572
<LOAN-LOSSES> 829
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 6,517
<INCOME-PRETAX> 3,736
<INCOME-PRE-EXTRAORDINARY> 2,404
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 2,404
<EPS-PRIMARY> .65
<EPS-DILUTED> .65
<YIELD-ACTUAL> 5.77
<LOANS-NON> 1,908
<LOANS-PAST> 274
<LOANS-TROUBLED> 462
<LOANS-PROBLEM> 3,840
<ALLOWANCE-OPEN> 2,932
<CHARGE-OFFS> 1,212
<RECOVERIES> 247
<ALLOWANCE-CLOSE> 2,796
<ALLOWANCE-DOMESTIC> 0
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED 2,796
</TABLE>
