<PAGE> 1
U.S. SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 10-QSB
(Mark One)
[X] Quarterly report under Section 13 or 15(d) of the
Securities Exchange Act of 1934
For the quarterly period ended September 30, 1996
[ ] Transition report under Section 13 or 15(d) of the
Exchange Act
For the transition period to
------------------------------- --------------------
Commission file number 0-15777
FIRST INDEPENDENCE CORPORATION
----------------------------------------------------
(Exact Name of Small Business Issuer in Its Charter)
Michigan 38-2583843
------------------------------- ---------------------
(State or Other Jurisdiction of (I.R.S. Employer
Incorporation or Organization) Identification No.)
44 Michigan, Detroit, Michigan 48226
------------------------------------
(Address of Principal Executive Offices) (Zip Code)
(313) 256-8400
--------------
(Issuer's Telephone Number, Including Area Code)
Securities registered under Section 12 (b) of the Exchange Act:
NONE
Securities registered under Section 12 (g) of the Exchange Act:
Common stock, par value $1.00 per share
Check whether the issuer: (1) filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act 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 [ ]
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-336,760 shares as of November 12, 1996
<PAGE> 2
FIRST INDEPENDENCE CORPORATION
INDEX
<TABLE>
<S> <C> <C>
PAGE
Part I. FINANCIAL INFORMATION
Item 1. Financial Statements
Consolidated Balance Sheet September 30, 1996 3
Consolidated Statement of Income
Three Months and YTD Ended September 30, 1996 and 1995 4
Consolidated Statement of Cash Flows
Nine Months ended September 30, 1996 and 1995 5
Notes to Consolidated Financial Statements 6 - 7
Item 2. Management's Discussion and Analysis
of Financial Condition and Results of Operations 8 - 12
Part II. OTHER INFORMATION 13
Item 1. Legal Proceedings 13
Item 2. Changes in Securities 13
Item 3. Defaults upon Senior Securities 13
Item 4. Submission of Matters to a Vote of Security Holders 13
Item 5. Exhibits and Reports on Form 8-K 13
</TABLE>
Signatures
2
<PAGE> 3
PART I.
FIRST INDEPENDENCE CORPORATION AND SUBSIDIARY
CONSOLIDATED BALANCE SHEET
(UNAUDITED)
<TABLE>
<CAPTION>
September 30
ASSETS 1996
----------
<S> <C>
Cash and due from banks $ 3,026,458
Federal funds sold 10,630,000
Investment securities
Available for sale 13,596,981
Held to maturity (Fair value of $15,320,000) 15,509,978
Total Investments 29,106,959
Loans:
Commercial 13,309,066
Real estate mortgages 24,755,476
Consumer 9,734,485
-----------
Total loans 47,799,027
Allowance for loan losses (893,405)
-----------
Net Loans 46,905,622
Premises and equipment, net 3,592,244
Accrued interest receivable and other assets 1,349,315
-----------
TOTAL ASSETS $94,610,598
===========
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Deposits:
Noninterest-bearing $28,985,296
Interest-bearing 55,498,002
-----------
Total Deposits 84,483,298
Federal funds purchased and securities
sold under retail repurchase agreements 4,002,028
Accrued expenses and other liabilities 1,050,536
Notes payable 900,000
-----------
TOTAL LIABILITIES 90,435,862
Shareholders' equity:
Preferred stock 2,731,633
Common stock, $1 par value: 500,000 shares
authorized; 336,760 shares issued and
outstanding 336,760
Surplus 2,369,782
Unrealized holding gains (losses) on
investment securities available for sale (104,514)
Accumulated deficit (1,158,925)
-----------
TOTAL SHAREHOLDERS' EQUITY 4,174,736
-----------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $94,610,598
===========
</TABLE>
3
<PAGE> 4
FIRST INDEPENDENCE CORPORATION AND SUBSIDIARY
CONSOLIDATED STATEMENT OF INCOME
(UNAUDITED)
<TABLE>
<CAPTION>
Quarter Ended Nine Months Ended
-------------------- --------------------
September September September September
1996 1995 1996 1995
<S> <C> <C> <C> <C>
INTEREST INCOME:
Interest and fees on loans $ 1,146,988 $1,078,094 $3,395,163 $3,008,978
Interest on investment securities
Taxable 473,684 474,488 1,399,914 1,328,650
Tax-exempt 0 225 0 8,879
Interest on federal funds sold 119,823 109,865 379,126 385,679
----------- ---------- ---------- ----------
TOTAL INTEREST INCOME 1,740,495 1,662,672 5,174,203 4,732,186
INTEREST EXPENSE:
Interest on deposits 425,954 385,283 1,276,015 1,079,305
Interest on borrowed funds 76,847 93,376 259,060 267,924
----------- ---------- ---------- ----------
TOTAL INTEREST EXPENSE 502,801 478,659 1,535,075 1,347,229
----------- ---------- ---------- ----------
NET INTEREST INCOME 1,237,694 1,184,013 3,639,128 3,384,957
PROVISION FOR LOAN LOSS 255,000 75,000 662,750 151,000
----------- ---------- ---------- ----------
NET INTEREST INCOME AFTER
PROVISION FOR LOAN LOSS 982,694 1,109,013 2,976,378 3,233,957
OTHER OPERATING INCOME:
Service charges on deposit accounts 218,241 214,186 625,731 618,990
Securities gains, net 40,626 0 40,742 0
Fees 174,433 256,616 598,141 799,017
----------- ---------- ---------- ----------
TOTAL OTHER OPERATING INCOME 433,300 470,802 1,264,614 1,418,007
OTHER OPERATING EXPENSES:
Salaries and benefits 692,793 718,792 2,064,591 2,083,247
Net occupancy expenses 152,424 135,100 372,457 355,133
Premises and equipment 213,644 108,005 656,357 361,416
Other expenses 382,243 436,543 987,148 1,453,853
----------- ---------- ---------- ----------
TOTAL OTHER OPERATING EXPENSES 1,418,876 1,398,440 4,080,553 4,253,649
INCOME BEFORE FEDERAL
INCOME TAXES (2,882) 181,375 160,439 398,315
FEDERAL INCOME TAXES 0 0 0 0
----------- ---------- ---------- ----------
NET INCOME/(LOSS) $ (2,882) $ 181,375 $ 160,439 $ 398,315
=========== ========== ========== ==========
Income per share of common stock: $ (0.03) $ 0.45 $ 0.40 $ 0.91
=========== ========== ========== ==========
</TABLE>
4
<PAGE> 5
FIRST INDEPENDENCE CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
for the nine months ended September 30, 1996 and 1995
<TABLE>
<CAPTION>
1996 1995
--------- ---------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 160,439 $ 398,315
Adjustments to reconcile net income to
net cash provided by operating activities:
Depreciation and amortization 368,100 260,249
Amortization of premiums and accretion of discounts 37,655 32,516
Provision for loan losses 662,750 151,000
Securities gains, net (40,742) 0
Changes in:
Accrued interest receivable and other assets (124,464) (288,282)
Accrued expenses and other liabilities 85,230 (105,472)
----------- -----------
NET CASH PROVIDED BY OPERATING ACTIVITIES 1,148,968 448,326
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from sales of investment securities
available for sale 3,692,616 0
Proceeds from maturities of investment securities
available for sale 3,135,194 3,159,352
Proceeds from maturities of investment securities
held to maturity 5,700,000 3,326,800
Purchases of investment securities available
for sale (8,119,470) (2,000,000)
Purchases of investment securities
held to maturity (4,665,092) (7,985,676)
Net change in loans (4,017,772) (6,292,217)
Purchases of premises and equipment (320,160) (1,034,384)
----------- ------------
NET CASH USED IN INVESTING ACTIVITIES (4,594,684) (10,826,125)
----------- -----------
CASH FLOWS FROM FINANCING ACTIVITIES
changes in:
Deposits (232,626) 11,280,829
Securities sold under repurchase agreements 227,450 86,482
Proceeds from issuance of preferred stock 47,700 269,408
NET CASH PROVIDED BY FINANCING ACTIVITIES 42,524 11,636,719
----------- -----------
Net increase (decrease) in cash and cash equivalents (3,403,192) 1,258,920
Cash and cash equivalents, beginning of year 17,059,650 15,482,689
----------- -----------
CASH AND CASH EQUIVALENTS, END OF PERIOD $13,656,458 $16,741,609
=========== ===========
</TABLE>
5
<PAGE> 6
FIRST INDEPENDENCE CORPORATION AND SUBSIDIARY
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 1996
1. The consolidated balance sheet as of September 30, 1996, the related
consolidated statements of income for the quarter and nine months ended
September 30, 1996 and 1995, and the statement of cash flows for the nine
month period ended September 30, 1996 and 1995 are unaudited.
2. In the opinion of management, all normal recurring adjustments necessary
for a fair presentation of such financial statements have been included.
Interim results are not necessarily indicative of results for a full year.
3. The consolidated statements include the accounts of First Independence
Corporation (the "Corporation") and its wholly owned subsidiary, First
Independence National Bank of Detroit (the "Bank").
4. Under FAS 114 and 118, which the Bank adopted effective January 1, 1995,
the Bank considers non-performing loans (past due 90 days or more or matured
but not yet rewritten) and non-accrual loans (on which no interest income is
accrued) as "impaired" loans because there is a question as to whether all
interest and principal will be paid according to the contract. Some loans are
considered impaired loans because of special circumstances that raise
questions about their complete collectibility in accordance with the note,
although they are not non-performing or non-accrual loans. The measurement of
impaired loans is generally based on the present value of expected future cash
flows discounted at the historical effective interest rate, except that all
collateral-dependant loans are measured for impairment based on the fair value
of collateral. The adopting of SFAS 114 did not result in any additional
provision for loan losses as of January 1, 1995.
The allowance for possible losses on loans is maintained at a level believed
adequate by management to absorb potential losses from specific assets
identified as having greater than a normal risk of loss as well as losses from
the remainder of the portfolio. Management's determination of the level of the
allowance is based upon an evaluation of the portfolio, past experience,
current economic conditions, size and composition of the portfolio, collateral
location and values, cash flow positions, industry concentrations,
delinquencies and other relevant factors.
6
<PAGE> 7
The following table shows non-accrual, impaired, and loans past due 90 days or
more as of September 30, 1996 allocated according to loan types.
<TABLE>
<CAPTION>
Real Estate Consumer Commercial Total
----------- -------- ---------- -----
(in thousands)
<S> <C> <C> <C> <C>
Non-accrual Loans 638 571 97 1,306
impaired loans - - 231 231
Loans past due 90
days or more 327 507 555 1,389
--- ----- --- -----
Total 965 1,078 883 2,926
=== ===== === =====
</TABLE>
Interest that would have been accrued on the non-accrual loans at September 30,
1996, had they been on accrual status would have been approximately $105,000.
5. All significant intercompany balances and transactions have been
eliminated in consolidation.
6. In May 1993, a jury verdict was entered against the Corporation, a
nonoperating subsidiary of the Bank, certain directors and another former
officer thereof, in the amount of $320,000, in a suit filed by a former officer
of the Bank alleging wrongful termination of his employment and retaliatory
discharge. After several post-trial hearings, a judgment was entered on the
verdict in October 1994. Although an accrual in the amount of the judgment is
reflected in the financial statements, the Corporation has appealed the
judgment and is vigorously pursuing a reversal.
7
<PAGE> 8
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS.
RESULTS OF OPERATIONS
OVERVIEW
Net loss for the third quarter of 1996 was $2,882, or $.03 per share, compared
to net income of $181,375 or $.45 per share for the third quarter of 1995. For
the first nine months of 1996, net income was $160,439, or $.40 per share,
compared to $398,315, or $.91 per share for 1995. The decrease in net income
for the third quarter and the first nine months of 1996, as compared to 1995,
resulted from a higher loan loss provision in 1996 of $255,000 and $662,750,
respectively, compared to 1995 of $75,000 and $151,000. The 1996 increase in
the provision resulted from unauthorized and fictitious loans made by a
consumer loan officer in late 1995 and in January 1996.
EARNINGS SUMMARY--QUARTER ENDED SEPTEMBER 30, 1996 AND 1995
The Company experienced a consolidated net loss for the third quarter of
$2,882, as compared to $181,375 net income for the third quarter of 1995. Net
interest income increased $53,681 from the comparable period in 1995. This was
primarily a result of average earning assets increasing by $6,831,000.
Other operating income for the third quarter was about $37,000 lower than in
the third quarter of 1995 as a result of a $82,000 decline in mortgage
brokerage fees offset by an increase in gains on sales of investment securities
of $41,000. Other operating expenses were approximately $20,000 higher in the
third quarter of 1996 compared to the third quarter of 1995. The increase in
operating expenses was attributable to a $34,000 increase in FDIC assessments,
$20,000 increase in depreciation expense, and $30,000 reduction in salaries and
benefits.
BALANCE SHEET ANALYSIS
LIQUIDITY
Deposits at September 30, 1996 totaled $84,483,298 while federal funds sold
were $10,630,000 (12.6% of total deposits). Total securities
available-for-sale at September 30, 1996 were $13,596,981 (16.1% of total
deposits). In addition, $10,521,000 (12.5% of total deposits) of the Bank's
$29 million of securities will mature within one year. Thus, the bank has a
liquidity position such that management believes it is capable of funding loan
demand or deposit withdrawals. The liquidity ratio at September 30, 1996 was
in excess of 56%. The liquidity ratio is determined by dividing total loans by
total deposits.
8
<PAGE> 9
INVESTMENTS
The Bank had $29,106,959 of investment securities at September 30, 1996,
compared to $29,141,710 of such securities at December 31, 1995. The
following is a summary of the maturities and weighted average yields from the
investment portfolio at September 30, 1996. Yields are not calculated on a tax
equivalent basis.
<TABLE>
<CAPTION>
After One After Five
Within But Within But Within After
(in thousands) One Year Five Years Ten Years Ten Years Total
-------- ---------- ------------ ------------ ----------
<S> <C> <C> <C> <C> <C>
Available-for-sale
- ---------------------
Treasury and agency $5,009 $8,342 - $ 79 $13,430
State and Political - - - - -
Other - - - 167 167
------- ------ ------- ------ --------
Total $5,009 $8,342 - $ 246 $13,597
======= ====== ======= ====== ========
Weighted Ave Yield 6.33% 5.94% - 6.80% 6.10%
Held-to-maturity
- ---------------------
Treasury and agency $5,512 $9,998 - - $15,510
State and Political - - - - -
Other - - - - -
------- ------ ------- ------ --------
Total $5,512 $9,998 - - $15,510
======= ====== ======= ====== ========
Weighted Ave Yield 5.49% 5.70% - - 5.63%
</TABLE>
LOANS
The following table sets forth the composition of the Bank's loan portfolio at
September 30, 1996.
<TABLE>
<CAPTION>
September 30
(in thousands) 1996
----
<S> <C> <C>
Commercial $13,309 27.84%
Commercial Real Estate 9,171 19.19
Residential Real Estate 15,585 32.61
Consumer 9,734 20.36
------- ------
$47,799 100.00%
======= ======
</TABLE>
At September 30, 1996, the Bank had $2,926,000 of loans that were
nonperforming. Nonperforming loans include non-accrual loans, loans with
principal or interest past due 90 days or more, and loans that have matured and
are being extended or rewritten after their stated maturity date.
9
<PAGE> 10
Non-accrual loans are those nonperforming and/or impaired loans on which the
Bank does not accrue interest income. Loans are placed on non-accrual status
when principal or interest is in default for a period of 90 days or more unless
the loan is in the process of collection and is well secured so that delinquent
principal and interest would be expected to be satisfied from the collateral.
Nonperforming loans and non-accrual loans are all considered "impaired loans"
under SFAS 114, "Accounting by Creditors for Impairment of a Loan", and SFAS
118, "Accounting by Creditors for Impairment of a Loan - Income Recognition and
Disclosure." At September 30, 1996, total nonperforming and impaired loans
amounted to 6.12% of the aggregate loans at September 30, 1996, compared to
7.01% at the end of 1995.
The table included in note 4 to the financial statements shows information
concerning nonperforming, non-accrual and impaired loans as of September 30,
1996, allocated according to loan type. The amount of
of interest income that would have been accrued on the loans on non-accrual
status at September 30, 1996, had those loans remained current, was
approximately $105,000.
At September 30, 1996, there were no significant loans other than those
included in the above table, for which information was known that caused
management to have serious doubts as to the ability of borrowers to comply with
loan repayment terms.
The allowance for loan losses totaled $893,405 at September 30, 1996, compared
to the 1995 year end balance of $1,163,834. The allowance for loan losses
represented 1.87% of loans compared with 2.60% at December 31, 1995.
The allowance for loan losses was 30.5% of the aggregate of non-accrual loans
and loans delinquent 90 days or more at September 30, 1996. At December 31,
1995, the allowance was 40.1% of such loans. The 1996 percentage is lower than
at the end of 1995 because of loan charge-offs in 1996. The total amount of
the allowance for loan losses is based on management's evaluation of the
portfolio, past experience, economic conditions, composition of the portfolio,
collateral location and values, cash flow positions of the borrowers,
delinquencies and other factors deemed relevant. The allowance for loan
losses, in management's opinion, is adequate taking all such considerations
into account.
The loan review system and charge-off policy assist management in identifying
problem loans and credit deterioration earlier than in the past and continuing
implementation of the loan review system will improve this process further.
Effective collection efforts, when implemented early, generally result in lower
losses. Management expects lower loan losses as a result of recent
strengthening of the collection department. Loans charged off in the third
quarter of 1996 aggregated $691,000. These losses were provided for through a
charge to the provision for loan losses in the fourth quarter of 1995 and
during the first three Quarters of 1996. The charge offs were part of the
Bank's continuing effort to address problem loans in the loan portfolio and
improve the quality of the loan assets. Collection efforts in the third quarter
resulted in recoveries of $21,000 on loans previously charged off.
10
<PAGE> 11
The table below presents management's allocation of the allowance for loan
losses at September 30, 1996, and shows the percentage of the allowance
allocated to each category of loans.
<TABLE>
<CAPTION>
(Dollars in thousands)
September 1996
--------------
Allowance Percent
--------- -------
<S> <C> <C>
Commercial 543 60%
Real estate mortgage 15 2
Consumer 230 26
Unallocated 106 12
----- -----
894 100%
---------------------- ===== =====
</TABLE>
The following table summarizes activity in the allowance for loan losses during
the third quarter of 1996.
<TABLE>
<CAPTION>
Quarter Ended
September 1996
--------------
<S> <C>
Average loans outstanding
during the period $46,638,000
===========
Allowance for loan losses:
Beginning balance 1,309,000
Provision for credit losses 255,000
Charge-Offs (691,000)
Recoveries 21,000
-----------
Balance at End-of-Period 894,000
===========
Charge-Offs by Category
Commercial -0-
Consumer (625,000)
Real-Estate Mortgages (66,000)
-----------
Total charge-offs (691,000)
===========
Recoveries by Category
Commercial 8,000
Consumer 4,000
Real-Estate Mortgages 9,000
-----------
Total recoveries 21,000
===========
Net Loans Charged Off (670,000)
===========
Provision for loan losses as a percent of
average loans .55%
Net loans charged off as a percent of
average loans 1.44%
Total loans charged off as a percent of
average loans 1.49%
</TABLE>
11
<PAGE> 12
DEPOSITS
The following is a summary of the average balances and average rates paid on
deposits for the quarter ending September 30, 1996.
<TABLE>
<CAPTION>
(in thousands) Quarter Ending
September 1996
--------------
Average Average
Balance Rate
---------- ----------
<S> <C> <C>
Non-interest bearing demand deposits $29,282
U.S. Treasury, tax, and loan deposits * 102
Interest bearing demand deposits 6,608 2.22%
Savings deposits 15,023 1.97%
Time deposits
$100,000 or more ** 18,260 2.94%
Other time deposits 15,044 4.82%
----------
Total $84,319
==========
</TABLE>
* Represents non-retail deposits held overnight and remitted to the federal
government the following business day.
** Includes approximately $8,000,000 of a non-interest bearing time deposit
from the U.S. Treasury.
CAPITAL RESOURCES
At September 30, 1996, the ratio of equity capital to average assets of the
Bank was 5.71% and in compliance with the Comptroller of Currency requirement
of 5.50%. The risk-based Tier 1 capital ratio at September 30, 1996 was 10.70%
and the Bank's total capital ratio on September 30, 1996, was 11.96%. These
ratios were slightly higher when compared to the December 31, 1995 ratios,
which were 5.49%, 10.54%, and 11.80%, respectively.
As a result of the losses experienced in 1995 and the first quarter of 1996,
the Bank is not able to pay dividends to the Corporation. The Bank will have
to earn approximately $365,000 for the year in order to eliminate the deficit
in its retained earnings account. Thereafter, it may pay dividends legally
from earnings subject to prior approval of the Comptroller of the Currency
until the Comptroller Agreement described in the 10-KSB annual report is
terminated. Thus, the Corporation does not presently have the resources to pay
interest on its Senior Notes and cumulative dividends on its Class A and Class
B Preferred Stock.
The Corporation in June 1996, requested the holders of its Class A and Class B
Preferred Stock and of its $900,000 of Senior Notes for a waiver of defaults in
payment of interest on the Senior Notes and dividends on the Class A and Class
B Preferred Stock during 1996 as a result of the loan department losses. The
waiver would not forgive any dividends or interest due in 1996 but would allow
the Corporation to make the payment any time in 1997 without penalty. The
Series 1994-1 Preferred Stock is not entitled to receive dividends, but a 4%
dividend is required to be paid on the series 1994-1 Stock before any dividends
may be paid on the Common Stock.
12
<PAGE> 13
PART II. OTHER INFORMATION
ITEM 1. Legal Proceedings. No change from report on Form 10-KSB for year
ended December 31, 1995.
ITEM 2. Changes in Securities - none.
ITEM 3. Defaults upon senior securities.
Reference is made to the above section on Capital and Resources.
ITEM 4. Submission of matters to vote of security holders.
There were no matters submitted to a vote of the security
holders during the quarter ended September 30, 1996.
ITEM 5. Exhibits and reports on Form 8-K.
Exhibits:
(a)Exhibit 27-Financial Data Schedule
Reports on Form 8-K:
A report on Form 8-K was filed on October 25, 1996, which
included information on the change in First
Independence's Certifying Accountant from Coopers and Lybrand
LLP to Crowe, Chizek and Company LLP.
13
<PAGE> 14
FIRST INDEPENDENCE CORPORATION AND SUBSIDIARY
SIGNATURES
Pursuant to the requirement of the Securities and Exchange Act of 1934,
the registrant has duly caused this to report on Form 10-QSB to be signed on
behalf of the undersigned thereunto duly authorized.
FIRST INDEPENDENCE CORPORATION AND SUBSIDIARY
Registrant
November 8, 1996 /s/ Don Davis
------------------------
Don Davis
Chief Executive Officer
November 8, 1996 /s/ Rose Ann Lacy
------------------------
Rose Ann Lacy
Chief Financial Officer
Chief Accounting Officer
<PAGE> 15
EXHIBIT INDEX
EXHIBIT NO. DESCRIPTION
- ----------- -----------
27 FINANCIAL DATA SCHEDULE
<TABLE> <S> <C>
<ARTICLE> 9
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JUL-01-1996
<PERIOD-END> SEP-30-1996
<CASH> 3,026,458
<INT-BEARING-DEPOSITS> 0
<FED-FUNDS-SOLD> 10,630,000
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 13,596,981
<INVESTMENTS-CARRYING> 15,509,978
<INVESTMENTS-MARKET> 15,320,000
<LOANS> 47,799,027
<ALLOWANCE> 893,405
<TOTAL-ASSETS> 94,610,598
<DEPOSITS> 84,483,298
<SHORT-TERM> 4,002,028
<LIABILITIES-OTHER> 1,050,536
<LONG-TERM> 900,000
0
2,731,633
<COMMON> 336,760
<OTHER-SE> 1,106,343
<TOTAL-LIABILITIES-AND-EQUITY> 94,610,598
<INTEREST-LOAN> 1,146,988
<INTEREST-INVEST> 473,684
<INTEREST-OTHER> 119,823
<INTEREST-TOTAL> 1,740,495
<INTEREST-DEPOSIT> 425,954
<INTEREST-EXPENSE> 502,801
<INTEREST-INCOME-NET> 1,237,694
<LOAN-LOSSES> 255,000
<SECURITIES-GAINS> 40,626
<EXPENSE-OTHER> 1,418,876
<INCOME-PRETAX> (2,882)
<INCOME-PRE-EXTRAORDINARY> (2,882)
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (2,882)
<EPS-PRIMARY> (.03)
<EPS-DILUTED> (.03)
<YIELD-ACTUAL> 0
<LOANS-NON> 1,306,000
<LOANS-PAST> 1,389,000
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 231,000
<ALLOWANCE-OPEN> 1,309,000
<CHARGE-OFFS> 691,000
<RECOVERIES> 21,000
<ALLOWANCE-CLOSE> 894,000
<ALLOWANCE-DOMESTIC> 788,000
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 106,000
</TABLE>
