<PAGE> 1
U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 1999
-------------
OR
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from > to >
Commission File Number: 0-15777
FIRST INDEPENDENCE CORPORATION
---------------------------------------------------------------
(Exact Name of Small Business Issuer as Specified in its Charter)
Michigan 38-2583843
------------------------------ ---------------------------------
(State or Other Jurisdiction of (I.R.S. Employer Identification No.)
Incorporation or Organization)
44 Michigan, Detroit, Michigan 48226
(Address of Principal Executive Offices)
(313) 256-8400
----------------------------------------------
(Issuer's Telephone Number, Including Area Code)
Check whether the issuer (1) filed all reports required to be filed by Section
13 of 15(d) of the Exchange Act during the past 12 months (or for such shorter
period that the issuer 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 practicable date:
336,760 shares of Common Stock ($1 par value) as of June 30, 1999.
Transitional Small Business Disclosure Format (check one): Yes ; No X .
-- ---
<PAGE> 2
FIRST INDEPENDENCE CORPORATION
INDEX
<TABLE>
<CAPTION>
PART 1. FINANCIAL INFORMATION Page No.
--------
<S> <C>
Item 1. Financial Statements
Condensed Consolidated Balance Sheet -
June 30, 1999 (Unaudited)........................................................ 1
Condensed Consolidated Statements of Income - Three and
Six Months Ended June 30, 1999 (Unaudited) and
June 30, 1998 (Unaudited)........................................................ 2
Consolidated Statements of Comprehensive Income - Three
and Six Months Ended June 30, 1999 (Unaudited) and
June 30, 1998 (Unaudited)........................................................ 3
Condensed Consolidated Statements of Cash Flows -
Six Months Ended June 30, 1999 (Unaudited) and
June 30, 1998 (Unaudited)........................................................ 4
Notes to Condensed Consolidated Financial Statements (Unaudited)................... 5
Item 2. Management's Discussion and Analysis and Results of Operation...................... 6-10
PART II. OTHER INFORMATION
Item 1. Legal Proceedings.................................................................. 11
Item 2. Changes in Securities and Use of Proceeds.......................................... 11
Item 3. Defaults upon Senior Securities.................................................... 11
Item 4. Submission of Matters to a Vote of Security Holders................................ 11
Item 5. Other Information.................................................................. 11
Item 6. Exhibits and Reports on Form 8-K................................................... 11
SIGNATURES................................................................................... 12
</TABLE>
<PAGE> 3
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
FIRST INDEPENDENCE CORPORATION AND SUBSIDIARY
CONDENSED CONSOLIDATED BALANCE SHEET
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
June 30,
1999
----------------
(Unaudited)
<S> <C>
ASSETS
Cash and due from banks $ 3,194,857
Federal funds sold 14,700,000
----------------
Total cash and cash equivalents 17,894,857
Securities available for sale 50,214,151
Securities held to maturity 4,535,271
----------------
54,749,422
Total loans 41,433,923
Allowance for loan losses (1,029,895)
----------------
40,404,028
Premises and equipment - net 3,613,027
Accrued interest receivable and other assets 2,075,259
----------------
Total assets $ 118,736,593
================
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Deposits
Noninterest-bearing $ 32,923,079
Interest-bearing 54,845,829
----------------
87,768,908
Short-term borrowings 24,101,680
Accrued expenses and other liabilities 562,552
Long-term debt 900,000
----------------
Total liabilities 113,333,140
Shareholders' equity
Preferred stock 2,615,797
Common stock, $1 par value: 500,000 shares authorized;
336,760 shares issued and outstanding 336,760
Capital surplus 2,369,782
Retained earnings 821,970
Unrealized gain on securities available for sale (740,856)
----------------
Total shareholders' equity 5,403,453
Total liabilities and shareholders' equity $ 118,736,593
================
</TABLE>
- -------------------------------------------------------------------------------
See accompanying notes to condensed consolidated financial statements.
1.
<PAGE> 4
FIRST INDEPENDENCE CORPORATION AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
-----Three Months Ended----- -----Six Months Ended-------
June 30, 1999 June 30, 1998 June 30, 1999 June 30, 1998
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Interest income
Loans, including fees $ 950,709 $ 994,569 $1,919,127 $1,966,698
Federal funds sold 230,803 150,819 462,991 333,512
Securities 840,791 709,983 1,640,092 1,398,512
---------- ---------- ---------- ----------
2,022,303 1,855,371 4,022,210 3,698,722
Interest expense
Deposits 404,084 489,649 840,527 946,154
Other borrowed funds 258,959 160,698 519,053 327,668
---------- ---------- ---------- ----------
663,043 650,347 1,359,580 1,273,822
---------- ---------- ---------- ----------
NET INTEREST INCOME 1,359,260 1,205,024 2,662,630 2,424,900
Provision for loan losses 45,000 75,000 90,000 150,000
---------- ---------- ---------- ----------
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES 1,314,260 1,130,024 2,572,630 2,274,900
Noninterest income
Service charges on deposit accounts 175,731 181,229 353,161 346,475
Net gain on sales of residential real estate loans 0 3,618 0 22,408
Other noninterest income 92,069 55,179 165,384 153,495
---------- ---------- ---------- ----------
267,800 240,026 518,545 522,378
Noninterest expense
Salaries and employee benefits 676,721 586,173 1,337,295 1,174,952
Occupancy 319,377 304,911 622,495 617,461
Professional services 71,000 47,500 130,000 115,000
Other noninterest expense 280,309 226,763 532,882 444,738
---------- ---------- ---------- ----------
1,347,407 1,165,347 2,622,672 2,352,151
---------- ---------- ---------- ----------
INCOME BEFORE FEDERAL INCOME TAX 234,653 204,703 468,503 445,127
Federal income tax expense 0 0 0 0
---------- ---------- ---------- ----------
NET INCOME 234,653 204,703 468,503 445,127
Preferred stock dividend requirement 0 8,550 17,100 17,100
---------- ---------- ---------- ----------
INCOME ATTRIBUTABLE TO COMMON STOCK $ 234,653 $ 196,153 $ 451,403 $ 428,027
========== ========== ========== ==========
Basic and diluted earnings per common share $ 0.70 $ 0.58 $ 1.34 $ 1.27
========== ========== ========== ==========
</TABLE>
- --------------------------------------------------------------------------------
See accompanying notes to condensed consolidated financial statements.
2.
<PAGE> 5
FIRST INDEPENDENCE CORPORATION AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
------Three months ended--- ------Six months ended-------
June 30, June 30, June 30, June 30,
1999 1998 1999 1998
---- ---- ---- ----
<S> <C> <C> <C> <C>
Net income $ 234,653 $ 204,703 $ 468,503 $ 445,127
Other comprehensive income, net of tax:
Change in unrealized gains (losses)
on securities (411,599) 45,837 (811,054) (29,030)
------------- ------------ ------------- ------------
Comprehensive income $ (176,946) $ 250,540 $ (342,551) $ 416,097
============= ============ ============= ============
</TABLE>
- --------------------------------------------------------------------------------
See accompanying notes to condensed consolidated financial statements.
3.
<PAGE> 6
FIRST INDEPENDENCE CORPORATION AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months Ended
June 30, 1999 June 30, 1998
------------- -------------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net income $ 468,503 $ 445,127
Adjustments to reconcile net income
to net cash from operating activities:
Depreciation 289,657 248,478
Amortization of premiums and discounts on
securities, net 48,476 40,649
Provision for loan losses 90,000 150,000
Net change in:
Accrued interest receivable and other assets (436,506) (332,354)
Accrued interest payable and other liabilities 63,428 (177,244)
------------ ------------
Net cash from operating activities 523,558 374,656
CASH FLOWS FROM INVESTING ACTIVITIES
Net change in loans (2,111,666) (439,609)
Securities available for sale:
Proceeds from maturities and principal paydowns 6,017,706 9,168,923
Purchases (9,288,575) (17,093,125)
Securities held to maturity:
Proceeds from maturities 0 3,410,000
Purchases 0 0
Premises and equipment expenditures, net (609,649) (120,501)
------------ ------------
Net cash from investing activities (5,992,184) (5,074,312)
CASH FLOWS FROM FINANCING ACTIVITIES
Net change in deposits (7,028,770) 7,085,369
Net change in short-term borrowings 2,452,492 (1,116,353)
Interest paid on senior notes (13,500) 0
Dividends paid (17,100) (17,105)
------------ ------------
Net cash from financing activities (4,606,878) 5,951,911
------------ ------------
Net change in cash and cash equivalents (10,075,504) 1,252,255
Cash and cash equivalents at beginning of period 27,970,361 13,692,380
------------ ------------
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 17,894,857 $ 14,944,635
============ ============
Supplemental disclosures of cash flow information
Cash paid during the period for
Interest 1,447,386 1,264,537
</TABLE>
- --------------------------------------------------------------------------------
See accompanying notes to condensed consolidated financial statements.
4.
<PAGE> 7
FIRST INDEPENDENCE CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
- --------------------------------------------------------------------------------
1. BASIS OF PRESENTATION:
The unaudited condensed consolidated financial statements include the
consolidated results of operations of First Independence Corporation ("the
Corporation") and its wholly-owned subsidiary, First Independence National
Bank of Detroit ("the Bank"). These consolidated financial statements have
been prepared in accordance with the Instructions for Form 10-QSB and Item
310(b) of Regulation S-B and do not include all disclosures required by
generally accepted accounting principles for a complete presentation of the
Corporation's financial condition and results of operations. In the opinion
of management, the information reflects all adjustments (consisting only of
normal recurring accruals) which are necessary in order to make the
financial statements not misleading and for a fair presentation of the
results that may be achieved of operations for such periods. The results
for the period ended June 30, 1999 should not be considered as indicative
of results that may be achieved for a full year. For further information,
refer to the consolidated financial statements and footnotes included in
the Corporation's Annual Report on Form 10-KSB for the year ended December
31, 1998.
2. EARNINGS PER COMMON SHARE:
Basic earnings per common share is based on net income divided by the
weighted average number of common shares outstanding during the period.
Diluted earnings per common share further assumes the issue of any
potentially dilutive common shares. The weighted average number of common
shares used in the calculation of both basic and diluted earnings per
common share was 336,760 shares for the three and six months ended June 30,
1999 and 1998.
3. COMPREHENSIVE INCOME:
Under a new accounting standard, comprehensive income is now reported for
all periods, effective for both interim and year-end financial statements
for fiscal years beginning after December 31, 1997. Comprehensive income
includes both net income and other comprehensive income. Other
comprehensive income includes the change in net unrealized gains and losses
on securities. Interim financial statements need only disclose total
comprehensive income for each reported period.
- --------------------------------------------------------------------------------
5.
<PAGE> 8
Item 2. Management's Discussion and Analysis and Results of Operation.
- --------------------------------------------------------------------------------
SUMMARY OF OPERATIONS
Net income attributable to common stock for the second quarter of 1999 was
$234,653, or $0.70a per common share, compared to a net income of $196,153 or
$0.58 per common share for the second quarter of 1998. The increase in net
income for the second quarter 1999, as compared to 1998, was primarily the
result of a decrease in the loan loss provision and an increase in interest
income from securities.
Net income attributable to common stock for the six months ended June 30, 1999
was $468,503, or $1.34 per common share, compared to $445,127, or $1.27 per
common share, for the six months ended June 30, 1998. The increase was primarily
the result of a decrease in the provision for loan losses, offset by an increase
in net interest income and an increase in noninterest expense.
Net Interest Income: Net interest income for the second quarter of 1999 was
$1,359,260, an increase of $154,230 from the second quarter of 1998 net interest
income of $1,205,024. Net interest income for the six months ended June 30, 1999
was $2,662,630, an increase of $237,730 when compared to the six months ended
June 30, 1998. The increase for both the second quarter and the first six months
of 1999 as compared to 1998 was attributable to average earning assets
increasing more than average interest-bearing liabilities. This increase was
offset by a reduction in net interest margin due to lower yielding earning
assets and higher rates on deposits.
Provision for Loan Losses: The provision for loan losses in the second quarter
of 1999 was $45,000, a decrease of $30,000 from the second quarter of 1998. The
provision for loan losses for the six months ended June 30, 1999 was $90,000, an
decrease of $60,000 when compared to the $150,000 provision for loan losses for
the six months ended June 30, 1998. The allowance for loan losses as a
percentage of total loans outstanding as of June 30, 1999 was 2.49%. The Bank
maintains the allowance for loan losses at a level management feels is adequate
to absorb losses inherent in the loan portfolio. The evaluation is based upon a
continuous review of the Bank's and banking industry's historical loan loss
experience, known and inherent risks contained in the loan portfolio,
composition and growth of the loan portfolio, current and projected economic
conditions and other factors. The decrease in the need for additional provisions
for loan losses is a result of management's continued efforts on improving the
quality of the loan portfolio.
Noninterest Income: Noninterest income for the second quarter of 1999 amounted
to $267,800, an increase of $27,774, or 11.6%, from the second quarter of 1998.
- --------------------------------------------------------------------------------
(Continued)
6.
<PAGE> 9
Item 2. Management's Discussion and Analysis and Results of Operation.
- --------------------------------------------------------------------------------
SUMMARY OF OPERATIONS (Continued)
Noninterest income for the six months ended June 30, 1999 was $518,545, a
decrease of $3,833 when compared to the six months ended June 30, 1998. The
decrease was the result of a decrease in gains on sales of residential real
estate loans of $22,408, partially offset by an increase in other noninterest
income of $11,889, primarily from additional surcharge fees on ATM usage. The
decrease in gains on sales of residential real estate loans is primarily the
result of less emphasis placed by management on the origination and sale of
residential real estate loans.
Noninterest Expense: Noninterest expense for the second quarter of 1999 amounted
to $1,347,407, an increase of $182,060, or 15.6%, from the second quarter of
1998 noninterest expense of $1,165,347. The increase was primarily the result of
an increase in salary and wages of $90,548, professional services expense of
$25,000 and other noninterest expense of $53,546.
For the six months ended June 30, 1999, noninterest expense of $2,622,672 had
increased $270,521 as compared to the six months ended June 30, 1998. The
overall increase was the result the following: salaries and employee benefits
increased $162,343, professional services expense increased $15,000, and other
noninterest expense increased $88,144.
BALANCE SHEET ANALYSIS
Liquidity: Federal funds sold were $14,700,000, or 16.7% of total deposits of
$87,768,908 at June 30, 1999. Total securities available-for-sale at June 30,
1999 were $50,214,151, or 57.2% of total deposits. The Bank has a liquidity
position such that management believes it is capable of funding loan demand or
deposit withdrawals.
Securities: The Bank had $54,749,422 of securities at June 30, 1999, compared to
$52,755,899 at December 31, 1998. The increase in securities is the result of
management's strategy to invest the excess funds made available from an increase
in deposits into higher earning assets. Securities primarily consist of U.S.
Treasury and U.S. Government and federal agency securities.
- --------------------------------------------------------------------------------
(Continued)
7.
<PAGE> 10
Item 2. Management's Discussion and Analysis and Results of Operation.
- --------------------------------------------------------------------------------
BALANCE SHEET ANALYSIS (continued)
Loans: The following table sets forth the composition of the Bank's loan
portfolio at June 30, 1999:
<TABLE>
<S> <C> <C>
Commercial $ 11,176,697 26.9%
Commercial real estate 9,242,065 22.3
Residential real estate 15,229,581 36.8
Consumer 5,785,580 14.0
---------------- --------
$ 41,433,923 100.0%
================ ========
</TABLE>
At June 30, 1999, the Bank had $2,293,726 of loans that were considered
nonperforming. Nonperforming loans include non-accrual loans, loans with
principal or interest past due 90 days or more, and other impaired loans.
Non-accrual loans are those 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. Impaired loans are those loans
which management does not expect to fully collect all principal and interest
under the original terms of the loan. At June 30, 1999, total nonperforming and
impaired loans amounted to 5.53% of aggregate loans at June 30, 1999, compared
to 3.22% at December 31, 1998.
At June 30, 1999, there were no significant loans other than those identified
above, for which information was known that would cause management to have
serious doubts as to the ability of borrowers to comply with loan repayment
terms.
The allowance for loan losses totaled $1,029,895 at June 30, 1999, compared to
December 31, 1998 of $1,174,888. The allowance for loan losses represented 2.49%
of total loans at June 30, 1999 compared with 2.97% at December 31, 1998. The
allowance for loan losses was 44.9% of nonperforming loans at June 30, 1999 as
compared to 88% of nonperforming loans at December 31, 1998. 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.
Loans charged off in the second quarter of 1999 aggregated $72,000. The charge
offs are part of the Bank's continuing effort to address problem loans in the
loan portfolio and improve the quality of the loan assets. The Bank's collection
efforts in the second quarter of 1999 resulted in recoveries of $66,000 on loans
previously charged off.
- --------------------------------------------------------------------------------
(Continued)
8.
<PAGE> 11
Item 2. Management's Discussion and Analysis and Results of Operation.
- --------------------------------------------------------------------------------
BALANCE SHEET ANALYSIS (continued)
The table below presents management's allocation of the allowance for loan
losses by loan portfolio at June 30, 1999.
<TABLE>
<CAPTION>
(In thousands) Allowance Percent
--------- -------
<S> <C> <C>
Commercial/commercial real estate $ 336 32.6%
Real estate mortgage 85 8.3
Consumer 134 13.0
Unallocated 475 46.1
---------- --------
$ 1,030 100.0%
========== ========
</TABLE>
The following table summarizes activity in the allowance for loan losses during
the six months ended June 30, 1998.
<TABLE>
<S> <C>
Average loans outstanding during the period $ 40,495,586
================
Allowance for loan losses
Beginning balance $ 1,174,888
Provision for loan losses 90,000
Charge-offs (258,000)
Recoveries 23,007
----------------
Balance at end of period $ 1,029,895
================
</TABLE>
Provision for loan losses as a percent of average loans 0.22%
Net loans charged off as a percent of average loans 0.58%
Total loans charged off as a percent of average loans 0.64%
Deposits: The following is a summary of the average balances and average rates
paid on deposits for the six months ending June 30, 1999.
<TABLE>
<CAPTION>
Average Average
(In thousands) Balance Rate
------- ----
<S> <C> <C>
Noninterest-bearing demand deposits $ 36,986
Interest-bearing demand deposits 8,500 2.19%
Savings deposits 15,211 1.93
Time deposits
$100,000 or more * 16,072 3.69
Other time deposits 14,158 4.30
----------
$ 90,927
==========
</TABLE>
* Includes approximately $2.0 million of noninterest-bearing time deposits
from the U.S. Treasury.
- --------------------------------------------------------------------------------
(Continued)
9.
<PAGE> 12
Item 2. Management's Discussion and Analysis and Results of Operation.
- --------------------------------------------------------------------------------
BALANCE SHEET ANALYSIS (continued)
Capital Resources: The following table presents Tier 1 Capital and Total Capital
as of June 30, 1999. Both Tier 1 and Total Capital ratios exceed regulatory
minimum requirements of 4% and 8%, respectively. The Tier 1 Leverage Ratio, also
presented below, exceeds the regulatory minimum of 3%.
<TABLE>
<CAPTION>
June 30, December 31,
1999 1998
---- ----
<S> <C> <C>
Ratios (end of period):
Risk-Based Capital Ratios:
Tier 1 Capital Ratio 12.88% 12.06%
Total Capital Ratio 14.04% 13.32%
Tier 1 Leverage Ratio 6.95% 5.75%
</TABLE>
YEAR 2000
The approach of the year 2000 presents potential problems to businesses that
utilize computers in their daily operations. Some computer systems may not be
able to properly interpret dates after December 31, 1999, because they use only
two digits to indicate the year in the date. Therefore, a date using "00" as the
year may recognize the year as 1900 rather than the year 2000.
The Corporation has formed a Year 2000 Committee (the "Committee") to address
the potential problems associated with the Year 2000 computer issue. The
Committee, consisting of directors, officers and employees of the Corporation,
meets on a regular basis and provides regular reports to the Board of Directors
detailing progress with the Year 2000 issue.
Costs of the Corporation related to the Year 2000 issue are estimated to be
approximately $150,000. Costs incurred through June 30, 1999 are $150,000. It is
impossible to predict the exact expenses associated with the Year 2000 issue and
additional funds may be needed for unknown expenses relating to Year 2000
testing, training and education, as well as system and software replacements.
As with any organization that depends on technology, particularly computer
systems and software, a Year 2000 related failure poses a significant threat to
continued business operations. While the Corporation has developed a plan to
ensure Year 2000 readiness, we recognize that the success of our third party
providers is vital to our success. Of primary concern are local utility and
telecommunications companies. These, in addition to other third parties, have
been contacted and the Committee is monitoring their progress towards their own
Year 2000 readiness. Additional risks include the Bank's lending and deposit
relationships. The Committee is currently evaluating these two groups and
assessing any potential risks, as well as establishing any necessary corrective
procedures.
- --------------------------------------------------------------------------------
(Continued)
10.
<PAGE> 13
FIRST INDEPENDENCE CORPORATION
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS
AND RESULTS OF OPERATIONS
- --------------------------------------------------------------------------------
Despite careful planning by the Corporation, we recognize there may be
circumstances beyond our control that may prohibit us from operating "as usual"
after December 31, 1999. The Year 2000 Committee is currently in process of
developing a contingency plan to address potential Year 2000 problems.
- --------------------------------------------------------------------------------
11.
<PAGE> 14
PART II. OTHER INFORMATION
Item 1. Legal Proceedings.
There are no matters required to be reported under this item.
Item 2. Changes in Securities.
There are no matters required to be reported under this item.
Item 3. Defaults Upon Senior Securities.
There are no matters required to be reported under this items.
Item 4. Submission of Matters to a Vote of Security Holders.
There are no matters required to be reported under this item.
Item 5. Other Information.
There are no matters required to be reported under this item.
Item 6. Exhibits and Reports on Form 8-K.
(a) Exhibit
(1) 24 - Financial Data Schedule.
- --------------------------------------------------------------------------------
12.
<PAGE> 15
SIGNATURES
In accordance with the requirements of the Exchange Act, the registrant caused
this report to be signed on its behalf by the undersigned, thereunto duly
authorized.
FIRST INDEPENDENCE CORPORATION
Registrant
Date: 8/9/99 /s/ William Fuller
------------------------- ---------------------------------------
William Fuller, President
Date: 8/9/99 /s/ Rose Ann Lacy
------------------------- ---------------------------------------
Rose Ann Lacy, Chief Financial Officer
- --------------------------------------------------------------------------------
13.
<PAGE> 16
Exhibit Index
Exhibit No. Description
- ----------- -----------
27 Financial Data Schedule
<TABLE> <S> <C>
<ARTICLE> 9
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-START> JAN-01-1999
<PERIOD-END> JUN-30-1999
<CASH> 3,194,857
<INT-BEARING-DEPOSITS> 0
<FED-FUNDS-SOLD> 14,700,000
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 50,214,151
<INVESTMENTS-CARRYING> 54,749,422
<INVESTMENTS-MARKET> 54,718,950
<LOANS> 41,433,923
<ALLOWANCE> 1,029,895
<TOTAL-ASSETS> 118,736,593
<DEPOSITS> 87,768,908
<SHORT-TERM> 24,101,680
<LIABILITIES-OTHER> 562,552
<LONG-TERM> 900,000
0
2,615,797
<COMMON> 336,760
<OTHER-SE> 2,450,896
<TOTAL-LIABILITIES-AND-EQUITY> 5,403,453
<INTEREST-LOAN> 1,919,127
<INTEREST-INVEST> 1,640,092
<INTEREST-OTHER> 462,991
<INTEREST-TOTAL> 4,022,210
<INTEREST-DEPOSIT> 840,527
<INTEREST-EXPENSE> 1,359,580
<INTEREST-INCOME-NET> 2,662,630
<LOAN-LOSSES> 90,000
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 2,622,672
<INCOME-PRETAX> 468,503
<INCOME-PRE-EXTRAORDINARY> 468,503
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 468,503
<EPS-BASIC> 1.34
<EPS-DILUTED> 1.34
<YIELD-ACTUAL> 0
<LOANS-NON> 396,264
<LOANS-PAST> 952,260
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 945,202
<ALLOWANCE-OPEN> 1,174,888
<CHARGE-OFFS> 258,000
<RECOVERIES> 23,007
<ALLOWANCE-CLOSE> 1,029,895
<ALLOWANCE-DOMESTIC> 1,029,895
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 475,000
</TABLE>
