<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 June 30, 1996
[ ] Transition report under Section 13 or 15(d) of the
Exchange Act
For the transition period from 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) 256-8200
----------------------------------------------------
(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 [ ] No [x]
Indicate the number of shares outstanding of each of the issuers's classes
of common stock, as of the last practical date:
Common Stock, $1 Par value - 336,760 shares as of August 12, 1996.
<PAGE> 2
FIRST INDEPENDENCE CORPORATION
INDEX
PAGE
Part I. FINANCIAL INFORMATION
Item 1. Financial Statements
Consolidated Balance Sheet June 30, 1996 3
Consolidated Statement of Income
Three Months and YTD Ended June 30, 1996 and 1995 4
Consolidates Statement of Cash Flows
Six Months ended June 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 - 13
Part II. OTHER INFORMATION 14
Item 1. Legal Proceedings 14
Item 2. Changes in Securities 14
Item 3. Defaults upon Senior Securities 14
Item 4. Submission of Matters to a Vote of Security Holders 14
Item 5. Exhibits and Reports on Form 8-K 15
Signatures
2
<PAGE> 3
PART I. FIRST INDEPENDENCE CORPORATION AND SUBSIDIARY
CONSOLIDATED BALANCE SHEET
(UNAUDITED)
<TABLE>
<CAPTION>
June 30
ASSETS 1996
-------
<S> <C>
Cash and due fom banks $ 4,120,860
Federal funds sold 11,200,000
Investment securities
Available for sale 15,221,319
Held to maturity (Fair Value of $16,800,000) 17,221,312
Total investments 32,442,631
Loans:
Commercial 10,058,055
Real estate mortgages 24,814,547
Consumer 10,922,106
-----------
45,794,708
Allowance for loan losses (1,308,829)
-----------
Net loans 44,485,879
Premises and Equipment, net 3,611,293
Accrued interest receivable and
other assets 1,356,389
-----------
TOTAL ASSETS $97,217,052
===========
LIABILITIES AND SHAREHOLDERS ' EQUITY
Liabilities:
Deposits:
Noninterest - bearing $28,625,468
Interest - bearing 56,957,523
-----------
TOTAL DEPOSITS 85,582,991
Federal funds purchased and securities
sold under retail repurchase
agreements 5,485,868
Accrued expenses and other liabilities 1,031,078
Notes payable 900,000
-----------
TOTAL LIABILITIES 92,999,937
-----------
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 (65,017)
Accumulated deficit (1,156,043)
-----------
TOTAL SHAREHOLDERS' EQUITY 4,217,115
-----------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $97,217,052
===========
</TABLE>
3
<PAGE> 4
FIRST INDEPENDENCE CORPORATION AND SUBSIDIARY
CONSOLIDATED STATEMENT OF INCOME
(UNAUDITED)
<TABLE>
<CAPTION>
Quarter Ended Six Months Ended
------------------------------ ---------------------------------
June June June June
1996 1995 1996 1995
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
INTEREST INCOME:
Interest and fees on loans $1,133,668 $ 946,545 $ 2,248,175 $1,930,884
Interest on Investment Securities:
Taxable 474,343 441,803 926,230 854,162
Tax-exempt 0 3,967 0 8,654
Interest on federal funds sold 117,704 138,170 259,303 275,814
Interest on deposits with banks 0 0 0 0
---------- ---------- ----------- ----------
TOTAL INTEREST INCOME 1,725,715 1,530,485 3,433,708 3,069,514
INTEREST EXPENSE:
Interest on deposits 435,728 362,886 850,061 694,022
Interest on borrowed funds 84,750 91,227 182,213 174,548
---------- ---------- ----------- ----------
TOTAL INTEREST EXPENSE 520,478 454,113 1,032,274 868,570
---------- ---------- ----------- ----------
NET INTEREST INCOME 1,205,237 1,076,372 2,401,434 2,200,944
PROVISION FOR LOAN LOSSES 90,000 45,000 407,750 76,000
---------- ---------- ----------- ----------
NET INTEREST INCOME AFTER 1,115,237 1,031,372 1,993,684 2,124,944
PROVISION FOR LOAN LOSSES
OTHER OPERATING INCOME:
Service charges on deposit accounts 209,880 200,457 407,490 404,804
Securities gains,net 0 0 116 0
Fees 217,223 282,853 423,708 542,401
---------- ---------- ----------- ----------
TOTAL OTHER OPERATING INCOME 427,103 483,310 831,314 947,205
OTHER OPERATING EXPENSES
Salaries and benefits 709,686 708,728 1,371,798 1,364,455
Net occupancy expenses 113,598 120,042 242,261 220,033
Premises and equipment expenses 224,885 218,668 442,713 409,785
Other expenses 323,119 394,110 604,905 860,936
---------- ---------- ----------- ----------
TOTAL OTHER OPERATING EXPENSES 1,371,288 1,441,548 2,661,677 2,855,209
INCOME BEFORE FEDERAL INCOME TAXES 171,052 73,134 163,321 216,940
Federal income tax 0 0 0 0
---------- ---------- ----------- ----------
NET INCOME $ 171,052 $ 73,134 $ 163,321 $ 216,940
========== ========== =========== ==========
Income per share of common stock:
(net income less preferred dividends
divided by 336,760 average shares of
common stock outstanding in each period $ 0.39 $ 0.11 $ 0.23 $ 0.42
========== ========== =========== ==========
</TABLE>
4
<PAGE> 5
FIRST INDEPENDENCE CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
for the six months ended June 30, 1996 and 1995
<TABLE>
<CAPTION>
1996 1995
----------- -----------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 163,321 $ 216,940
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization 245,400 156,374
Amortization of premiums and accretion of discounts 18,050 34,287
Provision for loan losses 407,750 76,000
Securities gains, net (116) 0
Changes in:
Accrued interest receivable and other assets (131,538) (40,684)
Accrued expenses and other liabilities 65,772 (116,983)
----------- -----------
NET CASH PROVIDED BY OPERATING ACTIVITIES 768,639 325,934
----------- -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from sales of investment securities available for sale 1,001,053 0
Proceeds from maturities of investment securities available for sale 3,135,194 121,268
Proceeds from maturities of investment securities held to maturity 4,000,000 4,075,134
Purchase of investments securities available for sale (7,045,103) (2,000,000)
Purchase of investments securities held to maturity (4,665,092) (6,002,478)
Purchase of interest bearing deposits 0 0
Proceeds from sales of interest bearing deposits 0 0
Proceeds from maturities of interest bearing deposits 0 0
Net changes in loans (1,343,029) (2,578,661)
Purchase of premises and equipment (216,509) (909,493)
----------- -----------
NET CASH USED IN INVESTING ACTIVITIES (5,133,486) (7,294,230)
----------- -----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Changes in:
Deposits 867,067 5,091,932
Securities sold under repurchase agreements 1,711,290 2,611,951
Proceeds from issuance of preferred stock 47,700 269,408
----------- -----------
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES 2,626,057 7,973,291
----------- -----------
Net increase (decrease) in cash and cash equivalents (1,738,790) 1,004,995
Cash and cash equivalents, beginning of year 17,059,650 15,482,689
----------- -----------
CASH AND CASH EQUIVALENTS, END OF PERIOD $15,320,860 $16,487,684
=========== ===========
</TABLE>
5
<PAGE> 6
FIRST INDEPENDENCE CORPORATION AND SUBSIDIARY
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1996
1. The consolidated balance sheet as of June 30, 1996, the related
consolidated statements of income of the three month period, and the statement
of cash flows for the six month period ended June 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 "other impaired" loans because of special circumstances that raise
questions about their complete collectibility in accordance with the note,
although thay are not non-performing or non-accrual loans. The credit of the
borrower and the value of the collateral for example, could provide a basis for
a decision to consider a loan "other impaired" even if it is performing and
accruing interest. 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 or the portfolio. Management's determination of the level of the
allowance is based upon 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-performing, non-accrual and other impaired loans
as of June 30, 1996 allocated according to loan types.
<TABLE>
<CAPTION>
Real Estate Consumer Commercial Total
----------- -------- ---------- -----
(in thousands)
<S> <C> <C> <C> <C>
Non-accrual Loans 593 865 259 1,717
Other impaired loans 231 231
Loans past due 90
days or more 509 1,081 644 2,234
Total 1,102 1,946 1,134 4,182
</TABLE>
Interest that would have been accrued on the non-accrual loans at June 30,
1996, had they been on accrual status would have been approximately $99,000.
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 Income for the second quarter of 1996 was $171,052 , or $.39 per share,
compared to $73,134, or $.11 per share for the second quarter of 1995. For the
first six months of 1996, Net Income was $163,321, or $.23 per share, compared
to $216,940, or $.42 per share. The decrease for the first six months of 1996
resulted primarily from higher loan provision in 1996 ($407,750) compared to
1995 ($76,000). The 1996 increase in the provision resulted from unauthorized
and fictitious loans made by a consumer loan officer with no lending authority;
in late 1995 and in January 1996.
EARNINGS SUMMARY--QUARTER ENDED JUNE 30, 1996 AND 1995
The Company experienced a consolidated net income for the second quarter of
$171,052, as compared to $73,134 net income for the second quarter of 1995.
Net interest income increased $128,865 from the comparable period in 1995.
This was a result of average earning assets increasing by $8,261,000 of higher
quality assets and net interest margin increasing from 5.47 percent in the
second quarter of 1995 to 5.55 percent in the second quarter of 1996.
Other operating income for the second quarter was about $56,000 lower than in
the second quarter of 1995 as a result of a $76,000 decline in mortgage
brokerage fees offset by increases in miscellaneous fees received by the Bank
for depository and funds management services. Other operating expenses were
$70,000 lower in the second quarter of 1996 compared to the second quarter of
1995. The decline in operating expenses was attributable to a $40,000
reduction in FDIC assessments and $20,000 reduction in data processing costs.
BALANCE SHEET ANALYSIS
LIQUIDITY
Deposits at June 30, 1996 totaled $85,582,991 while Federal Funds Sold were
$11,200,000 (13.1% of total deposits). Total securities available-for-sale at
June 30, 1996, were $15,221,319 (17.8% of total deposits). In addition,
$8,271,000 (9.7% of total deposits) of the Bank's $32 million of securities
will mature within one year. Thus, the bank is very liquid and management
believes that it is capable of funding loans or deposit withdrawals with a June
30, 1996, liquidity ratio of more than 43%.
8
<PAGE> 9
INVESTMENTS
The Bank had $32,442,631 of investment securities at June 30, 1996, compared to
$29,141,710 of such securities at December 31, 1995. The increase is comprised
principally of securities available-for-sale which were $15.2 million at June
30, 1996 compared to 12.6 million at December 31, 1995. The following is a
summary of the maturities and weighted average yields from the investment
portfolio at June 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 $4,059 $10,629 -0- -0- $14,688
State -0- -0- -0- -0- -0-
Other -0- -0- -0- 533 533
Total $4,059 $10,629 -0- 533 $15,221
Weighted Ave Yield 6.41% 6.29% 6.19% 6.32%
Held-to-maturity
- -------------------
Treasury and agency $4,212 $13,010 -0- -0- $17,222
State -0- -0- -0- -0- -0-
Other -0- -0- -0- -0- -0-
Total $4,212 $13,010 -0- -0- $17,222
Weighted Ave Yield 7.02% 5.65% 5.99%
</TABLE>
LOANS
The following table sets forth the composition of the Bank's loan portfolio at
June 30, 1996.
<TABLE>
<CAPTION>
June 30 1996
(in thousands) ----
<S> <C> <C>
Commercial $10,058 21.96%
Commercial Real Estate 9,434 20.60
Residential Real Estate 15,381 33.59
Consumer 10,922 23.85
------- -------
$45,795 100.00%
------- -------
</TABLE>
At June 30, 1996 the Bank had $4,182,000 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 or other impaired loans on which the
Bank does not accrue periodic 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 June 30, 1996, total nonperforming and
impaired loans amounted to 9.13% of the aggregate loans at June 30, 1996,
compared to 7.01% at the end of 1995. This was due to the unauthorized
activities in the loan department in late 1995 and in January 1996.
The table at footnote 4 to the Notes to Financial Statements shows information
concerning nonperforming, non-accrual and other impaired loans as of June 30,
1996, allocated according to loan type.
The amount of interest income that would have been accrued on the loans on
non-accrual status at June 30, 1996, had those loans remained current was
approximately $99,000. No interest was actually accrued on those loans during
the quarter before thay were placed on non-accrual status.
At June 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 $1,308,829 at June 30, 1996, compared to
the 1995 year end balance of $1,163,834. The allowance for loan losses
represent 2.85% of loans compared with 2.60% at December 31, 1995.
The allowance for loan losses was 33.1% of the aggregate of non-accrual loans
and loans delinquent 90 days or more at June 30, 1996. At December 31, 1995,
the allowance was 40.1% of such loans. The 1996 percentage is slightly lower
than at the end of 1995 because of loan charge-offs in the first quarter of
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 this trend to resume as a result of recent
strenghtening of the collection department. Loans charged off in the second
quarter of 1996 aggregated $84,000. 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 second 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 June 30, 1996, and shows the percentage of the allowance allocated to
each category of loans.
<TABLE>
<CAPTION>
(Dollars in thousands)
June 30, 1996
-------------
Allowance Percent
--------- -------
<S> <C> <C>
Commercial 543 41%
Real estate mortgage 100 8%
Consumer 415 32%
Unallocated 251 19%
----- ---
1,309 100%
----- ---
</TABLE>
The following table summarizes activity in the allowance for loan losses during
the second quarter of 1996.
<TABLE>
<CAPTION>
Quarter Ended
June 1996
-------------
<S> <C>
Average loans outstanding
during the period $46,401,000
Allowance for loan losses:
Beginning balance 1,282,000
Provision for credit losses 90,000
Charge-Offs 84,000
Recoveries 21,000
Balance at End-of-Period 1,309,000
Charge-Offs by Category
Commercial -0-
Consumer 84,000
Real estate Mortgages -0-
Recoveries by Category
Commercial 7,000
Consumer 11,000
Real estate Mortgages 3,000
Net Loans Charged-Off 63,000
Provision for loan losses as a
percent of average loans .19%
Net loans charged off as a
percent of average loans .14%
Total loans charged off as a
percent of average loans .18%
</TABLE>
11
<PAGE> 12
DEPOSITS
The following is a summary of the average balances and average rates of
deposits for quarter ending June 30, 1996.
<TABLE>
<CAPTION>
(in thousands)
Quarter Ending
June 1996
-----------------------
Average Average
Balance Rate
---------- ----------
<S> <C> <C>
Non-interest bearing demand deposits $25,023
U.S. Treasury, tax, and loan deposits* 171
Interest bearing demand deposits 6,963 2.01%
Savings deposits 15,127 2.04%
Time deposits:
$100,000 or more** 19,327 3.03%
Other time deposits 15,129 4.70%
Total $81,740
</TABLE>
- ------------------------------------------------------------
* Represents non-retail deposits held overnight and remitted to the federal
government the following day.
** Includes approximately $8,000,000 of non-interest bearing time deposit from
the U.S. Treasury.
Capital Resources
At June 30, 1996, the ratio of equity capital to average assets of the Bank was
5.65% and in compliance with the Comptroller of Currency requirement of 5.50%.
The risk-based Tier 1 capital ratio at June 30, 1996, was 10.70% and the Bank's
total capital ratio on June 30, 1996, was 11.96%. These ratios were slightly
higher compared to December 31, 1995, when they 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. It will have to earn
approximately $365,000 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 have the resources to pay interest on its Senior
Notes and cumulative dividends on its Class A and Class B Preferred Stock.
12
<PAGE> 13
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.
13
<PAGE> 14
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 to a vote of the security holders during the
quarter ended June 30, 1996.
ITEM 5. Exhibits and reports on Form 8-K.
(a) Financial Data Schedule
(b) Reports on Form 8-K - none
14
<PAGE> 15
FIRST INDEPENDENCE CORPORATION AND SUBSIDIARY
SIGNATURES
Pursuant to the requirement of the Securities and Exchange Act of 1934,
the registrant has duly caused this amendment to report on Form 10-QSB to be
signed on behalf of the undersigned thereunto duly authorized.
FIRST INDEPENDENCE CORPORATION AND SUBSIDIARY
Registrant
August 12, 1996 /s/ Don Davis
------------------------
Don Davis
Chief Executive Officer
August 12, 1996 /s/ Rose Ann Lacy
------------------------
Rose Ann Lacy
Chief Financial Officer
Chief Accounting Officer
15
<PAGE> 16
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> APR-01-1996
<PERIOD-END> JUN-30-1996
<CASH> 4,120,860
<INT-BEARING-DEPOSITS> 0
<FED-FUNDS-SOLD> 11,200,000
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 15,221,312
<INVESTMENTS-CARRYING> 17,221,312
<INVESTMENTS-MARKET> 16,800,000
<LOANS> 45,794,708
<ALLOWANCE> 1,308,829
<TOTAL-ASSETS> 97,217,052
<DEPOSITS> 85,582,991
<SHORT-TERM> 5,485,868
<LIABILITIES-OTHER> 1,031,078
<LONG-TERM> 900,000
336,760
0
<COMMON> 2,731,633
<OTHER-SE> (1,221,060)
<TOTAL-LIABILITIES-AND-EQUITY> 97,217,052
<INTEREST-LOAN> 1,133,668
<INTEREST-INVEST> 474,343
<INTEREST-OTHER> 117,704
<INTEREST-TOTAL> 1,725,715
<INTEREST-DEPOSIT> 435,728
<INTEREST-EXPENSE> 520,478
<INTEREST-INCOME-NET> 1,205,237
<LOAN-LOSSES> 90,000
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 1,371,288
<INCOME-PRETAX> 171,052
<INCOME-PRE-EXTRAORDINARY> 171,052
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 171,052
<EPS-PRIMARY> .39
<EPS-DILUTED> .39
<YIELD-ACTUAL> 7.98
<LOANS-NON> 1,707,000
<LOANS-PAST> 2,234,000
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 231,000
<ALLOWANCE-OPEN> 1,282,000
<CHARGE-OFFS> 84,000
<RECOVERIES> 21,000
<ALLOWANCE-CLOSE> 1,309,000
<ALLOWANCE-DOMESTIC> 1,058,000
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 251,000
</TABLE>
