<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For Quarter Ended September 30, 1999
Commission file number 0-13580
-------
SUFFOLK BANCORP
(exact name of registrant as specified in its charter)
<TABLE>
<CAPTION>
<S> <C>
New York State 11-2708279
(State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.)
</TABLE>
6 West Second Street, Riverhead, New York 11901
(Address of Principal Executive Offices) (Zip Code)
(Registrant's telephone number, including area code) (631) 727-5667
NOT APPLICABLE
(former name, former address and former fiscal year if
changed since last report)
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. Yes X . No .
--- ---
Indicate the number of shares outstanding of each of the issuer's
classes of common stock, as of the latest practicable date.
6,062,580 SHARES OF COMMON STOCK OUTSTANDING AS OF SEPTEMBER 30, 1999
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SUFFOLK BANCORP AND SUBSIDIARIES
<TABLE>
<CAPTION>
Part I Financial Information page
<S> <C>
Consolidated Statements of Condition 4
Consolidated Statements of Income, For the Three Months Ended September 30, 1999 and 1998 5
Consolidated Statements of Income, For the Nine Months Ended September 30, 1999 and 1998 6
Statements of Cash Flows, For the Nine Months Ended September 30, 1999 and 1998 7
Notes to the Unaudited Consolidated Financial Statements 8
Management's Discussion and Analysis of Financial Condition and Results of Operations 8
Part II Other Information 12
Signatures 12
</TABLE>
3
<PAGE> 4
SUFFOLK BANCORP AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CONDITION
(unaudited, in thousands of dollars, except share and per share data)
<TABLE>
<CAPTION>
September 30, December 31,
1999 1998
-------------- --------------
<S> <C> <C>
ASSETS
Cash & Due From Banks $ 65,972 $ 58,298
Federal Funds Sold 15,200 17,800
Investment Securities:
Available for Sale, at Fair Value 105,130 129,348
U.S. Government Agency Obligations 1,745 2,382
Obligations of States & Political Subdivisions 26,406 16,231
Corporate Bonds & Other Securities 3,368 3,240
-------------- --------------
Total Investment Securities 136,649 151,201
Total Loans 701,763 647,520
Less: Allowance for Possible Loan Losses 7,106 6,955
-------------- --------------
Net Loans 694,657 640,565
Premises & Equipment, Net 14,737 15,249
Other Real Estate Owned, Net 201 341
Accrued Interest Receivable, Net 5,165 5,365
Excess of Cost Over Fair Value of Net Assets Acquired 1,629 1,900
Other Assets 19,495 18,713
-------------- --------------
TOTAL ASSETS 953,705 909,432
============== ==============
LIABILITIES & STOCKHOLDERS' EQUITY
Demand Deposits 236,013 234,049
Savings, N.O.W.'s & Money Market Deposits 373,429 333,098
Time Certificates of $100,000 or more 22,812 25,861
Other Time Deposits 233,941 233,556
-------------- --------------
Total Deposits 866,195 826,564
Dividend Payable on Common Stock 1,273 1,097
Accrued Interest Payable 2,254 2,867
Other Liabilities 7,693 7,059
-------------- --------------
TOTAL LIABILITIES 877,415 837,587
-------------- --------------
STOCKHOLDERS' EQUITY
Common Stock (par value $2.50; 15,000,000 shares authorized;
6,062,580 and 6,080,856 shares issued at September 30, 1999
& December 31, 1998, respectively) 19,026 19,026
Surplus 18,456 18,456
Treasury Stock at Par (1,547,840 shares and 1,529,564 shares, respectively) (3,870) (3,824)
Undivided Profits 43,699 38,155
-------------- --------------
77,311 71,813
Accumulated Other Comprehensive Income, Net of Tax (1,021) 32
-------------- --------------
TOTAL STOCKHOLDERS' EQUITY 76,290 71,845
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY $ 953,705 909,432
============== ==============
</TABLE>
See accompanying notes to consolidated financial statements.
4
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SUFFOLK BANCORP AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(unaudited, in thousands of dollars, except share and per share data)
<TABLE>
<CAPTION>
For the Three Months Ended
9/30/99 9/30/98
----------- ------------
<S> <C> <C>
INTEREST INCOME
Federal Funds Sold $ 575 $ 552
United States Treasury Securities 542 1,321
Obligations of States & Political Subdivisions (tax exempt) 150 115
U.S. Government Agency Obligations 906 506
Corporate Bonds & Other Securities 55 10
Loans 15,139 14,378
------------ -----------
Total Interest Income 17,367 16,882
INTEREST EXPENSE
Savings, N.O.W.'s & Money Market Deposits 2,099 1,837
Time Certificates of $100,000 or more 307 320
Other Time Deposits 2,925 3,134
Federal Funds Purchased 2 0
Interest on Other Borrowings - 0
------------ -----------
Total Interest Expense 5,333 5,291
Net-interest Income 12,034 11,591
Provision for Possible Loan Losses 275 300
------------ -----------
Net-interest Income After Provision for Possible Loan Losses 11,759 11,291
OTHER INCOME
Service Charges on Deposit Accounts 994 920
Other Service Charges, Commissions & Fees 444 943
Fiduciary Fees 186 167
Other Operating Income 158 180
------------ -----------
Total Other Income 1,782 2,210
OTHER EXPENSE
Salaries & Employee Benefits 4,307 4,048
Net Occupancy Expense 615 635
Equipment Expense 558 607
Other Real Estate Expense - 2
Other Operating Expense 2,149 2,706
------------ -----------
Total Other Expense 7,629 7,998
Income Before Provision for Income Taxes 5,912 5,503
Provision for Income Taxes 2,330 2,429
------------ -----------
NET INCOME $ 3,582 $ 3,074
============ ===========
AVERAGE: Common Shares Outstanding 6,065,596 6,095,356
Dilutive Stock Options 34,700 27,800
------------ -----------
AVERAGE TOTAL COMMON SHARES AND DILUTIVE OPTIONS 6,100,296 6,123,156
EARNINGS PER COMMON SHARE Basic $ 0.59 $ 0.51
Diluted $ 0.59 $ 0.51
</TABLE>
See accompanying notes to consolidated financial statements.
5
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SUFFOLK BANCORP AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(unaudited, in thousands of dollars, except share and per share data)
<TABLE>
<CAPTION>
For the Year to Date
9/30/99 9/30/98
----------- -----------
<S> <C> <C>
INTEREST INCOME
Federal Funds Sold $ 890 753
United States Treasury Securities 2,099 4,556
Obligations of States & Political Subdivisions 455 516
U.S. Government Agency Obligations 2,707 1,099
Corporate Bonds & Other Securities 167 29
Loans 43,984 42,568
------------ -----------
Total Interest Income 50,302 49,521
INTEREST EXPENSE
Savings, N.O.W.'s & Money Market Deposits 5,782 5,574
Time Certificates of $100,000 or more 886 971
Other Time Deposits 8,790 9,544
Federal Funds Purchased 171 82
Interest on Other Borrowings 15 70
------------ -----------
Total Interest Expense 15,644 16,241
Net-interest Income 34,658 33,280
Provision for Possible Loan Losses 770 900
------------ -----------
Net-interest Income After Provision 33,888 32,380
OTHER INCOME
Service Charges on Deposit Accounts 3,039 3,001
Other Service Charges, Commissions & Fees 965 2,080
Fiduciary Fees 522 425
Other Operating Income 400 643
------------ -----------
Total Other Income 4,926 6,149
OTHER EXPENSE
Salaries & Employee Benefits 12,741 12,243
Net Occupancy Expense 1,788 1,888
Equipment Expense 1,709 1,691
Other Real Estate Expense 13 30
Other Operating Expense 6,425 6,888
------------ -----------
Total Other Expense 22,676 22,740
Income Before Provision for Income Taxes 16,138 15,789
Provision for Income Taxes 6,326 6,904
------------ -----------
NET INCOME $ 9,812 $ 8,885
============ ===========
AVERAGE: Common Shares Outstanding 6,070,944 6,095,356
Dilutive Stock Options 34,700 27,800
------------ -----------
AVERAGE TOTAL 6,105,644 6,123,156
EARNINGS PER COMMON SHARE Basic $ 1.62 $ 1.46
Diluted $ 1.61 $ 1.45
</TABLE>
See accompanying notes to consolidated financial statements.
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SUFFOLK BANCORP AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited, in thousands of dollars, except share and per share data)
<TABLE>
<CAPTION>
For the Nine Months Ended
SEPTEMBER 30, 1999 SEPTEMBER 30, 1998
-------------------- --------------------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
NET INCOME $ 9,812 $ 8,885
ADJUSTMENTS TO RECONCILE NET INCOME TO NET CASH
Provision for Possible Loan Losses 770 900
Depreciation & Amortization 1,486 1,374
Amortization of Excess Cost Over Fair Value of Net Assets Acquired 271 271
Accretion of Discounts (709) (893)
Amortization of Premiums 514 104
Decrease in Accrued Interest Receivable 200 388
Increase in Other Assets (737) (3,179)
Decrease in Accrued Interest Payable (612) (525)
Increase (Decrease) in Other Liabilities 810 (9,414)
------------ ------------
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES 11,805 (2,089)
CASH FLOWS FROM INVESTING ACTIVITIES
Principal Payments on Investment Securities 712 4,451
Maturities of Investment Securities; Available for Sale 15,163 98,815
Purchases of Investment Securities; Available for Sale (25,463) (67,404)
Maturities of Investment Securities; Held to Maturity 109,000 12,248
Purchases of Investment Securities; Held to Maturity (86,451) (8,623)
Loan Disbursements & Repayments, Net (54,308) (11,400)
Purchases of Premises & Equipment, Net (973) (792)
Disposition of Other Real Estate Owned 95 351
------------ ------------
NET CASH (USED IN) PROVIDED BY INVESTING ACTIVITIES (42,225) 27,646
CASH FLOWS FROM FINANCING ACTIVITIES
Net Increase in Deposit Accounts 39,631 13,964
Dividends Paid to Shareholders (3,647) (3,291)
Treasury Shares Acquired (490) -
------------ ------------
NET CASH PROVIDED BY FINANCING ACTIVITIES 35,494 10,673
NET INCREASE IN CASH & CASH EQUIVALENTS 5,074 36,230
CASH & CASH EQUIVALENTS BEGINNING OF PERIOD 76,098 71,939
------------ ------------
CASH & CASH EQUIVALENTS END OF PERIOD $ 81,172 $ 108,169
============ ============
</TABLE>
See accompanying notes to consolidated financial statements.
7
<PAGE> 8
SUFFOLK BANCORP AND SUBSIDIARIES
NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
(1) GENERAL
In the opinion of management, the accompanying unaudited consolidated
financial statements of Suffolk Bancorp (Suffolk) and its consolidated
subsidiaries have been prepared to reflect all adjustments (consisting solely
of normally recurring accruals) necessary for a fair presentation of the
financial condition and results of operations for the periods presented.
Certain information and footnotes normally included in consolidated financial
statements prepared in accordance with generally accepted accounting principles
have been condensed or omitted. Notwithstanding, management believes that the
disclosures are adequate to prevent the information from misleading the reader,
particularly when the accompanying consolidated financial statements are read
in conjunction with the audited consolidated financial statements and notes
thereto included in the Registrant's annual report and on Form 10-K, for the
year ended December 31, 1998.
The results of operations for the three months ended September 30, 1999
are not necessarily indicative of the results of operations to be expected for
the remainder of the year.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
for the Three-Month Periods ended September 30, 1999 and 1998
NET INCOME
Net income was $3,582,000 for the quarter, ahead 16.5 percent from
$3,074,000 posted during the same period last year. Earnings per share for the
quarter were $0.59 versus $0.51, a gain of 15.7 percent.
INTEREST INCOME
Interest income was $17,367,000 for the third quarter of 1999, up 2.9
percent from $16,882,000 posted for the same quarter in 1998. Average net loans
during the third quarter of 1999 totaled $689,600,000, compared to $628,510,000
for the same period of 1998. During the third quarter of 1999, the yield was
8.18 percent (taxable-equivalent) on average earning assets of $853,772,000
down from 8.62 percent on average earning assets of $787,822,000 during the
third quarter of 1998.
INTEREST EXPENSE
Interest expense for the third quarter of 1999 was $5,333,000, up 0.8
percent from $5,291,000 for the same period of 1998. Average deposits for the
third quarter 1999 were $854,189,000 up from $802,613,000 for the comparable
period in 1998.
NET INTEREST INCOME
Net interest income is the largest component of Suffolk's earnings.
Net interest income for the third quarter of 1999 was $12,034,000, up from
$11,591,000 during the same period of 1998. The net interest margin for the
quarter, on a fully taxable-equivalent basis, was 5.68 percent compared to 5.93
percent for the same period of 1998.
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The following table details the components of Suffolk's net interest income:
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------
Quarter ended September 30, 1999
- --------------------------------------------------------------------------------------------------
Average Average
Balance Interest Rate
- --------------------------------------------------------------------------------------------------
INTEREST-EARNING ASSETS
- --------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
U.S. treasury securities $ 38,956 $ 553 5.68 %
Obligations of states & political subdivisions 13,288 228 6.87
U.S. govt. agency obligations 64,395 906 5.63
Corporate bonds & other securities 3,368 55 6.55
Federal funds sold & securities purchased
under agreements to resell 44,166 575 5.21
Loans, including non-accrual loans
Commercial, financial agricultural loans 123,771 2,721 8.80
Commercial real estate mortgages 147,812 3,300 8.93
Real estate construction loans 13,474 301 8.94
Residential mortgages (1st and 2nd liens) 75,810 1,870 9.87
Home equity loans 19,987 474 9.49
Consumer loans 303,446 6,473 8.53
Other loans (overdrafts) 5,299 - -
- --------------------------------------------------------------------------------------------------
Total interest-earning assets $ 853,772 $ 17,456 8.18 %
==================================================================================================
Cash & due from banks $ 56,062
Other non-interest-earning assets 32,168
- --------------------------------------------------------------------------------------------------
Total assets $ 942,002
- --------------------------------------------------------------------------------------------------
INTEREST-BEARING LIABILITIES
- --------------------------------------------------------------------------------------------------
Savings, N.O.W.'s & money market deposits $ 357,050 $ 2,099 2.35 %
Time deposits 253,977 3,232 5.09
- --------------------------------------------------------------------------------------------------
Total savings & time deposits 611,027 5,331 3.49
Federal funds purchased & securities
sold under agreement to repurchase 109 2 5.62
Other borrowings - - -
- --------------------------------------------------------------------------------------------------
Total interest-bearing liabilities $ 611,136 $ 5,333 3.49 %
==================================================================================================
Rate spread 4.69 %
Non-interest-bearing deposits $ 243,198
Other non-interest-bearing liabilities 13,812
- --------------------------------------------------------------------------------------------------
Total liabilities $ 868,146
Stockholders' equity 73,856
- --------------------------------------------------------------------------------------------------
Total liabilities & stockholders' equity $ 942,002
Net-interest income (taxable-equivalent basis)
& effective interest rate differential $ 12,124 5.68 %
Less: taxable-equivalent basis adjustment (89)
- --------------------------------------------------------------------------------------------------
Net-interest income $ 12,035
==================================================================================================
</TABLE>
OTHER INCOME
Other income decreased to $1,782,000 for the three months compared to
$2,210,000 the previous year. Service charges on deposits were up 8.0 percent.
Service charges other than for deposits, commissions, and fees decreased by
52.9 percent. Trust revenue was up 11.4 percent. Other operating income was
down 12.2 percent. Much of the decline is attributable to the sale of a
merchant services portfolio during the second quarter of 1998. The portfolio
provided revenues which were largely offset by non-interest expense.
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<PAGE> 10
OTHER EXPENSE
Other expense for the third quarter of 1999 was $7,629,000, down 4.6
percent from $7,998,000 for the comparable period in 1998.
CAPITAL RESOURCES
Stockholders' equity totaled $76,290,000 on September 30, 1999, an
increase of 6.2 percent from $71,845,000 on December 31, 1998. The ratio of
equity to assets was 8.0 percent at September 30, 1999 and 7.9 percent at
December 31, 1998. The following table details amounts and ratios of Suffolk's
regulatory capital: (in thousands of dollars except ratios)
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------------------
To be Well Capitalized
For Capital Under Prompt Corrective
Actual Adequacy Action Provisions
Amount Ratio Amount Ratio Amount Ratio
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
As of September 30, 1999
Total Capital (to risk-weighted assets) $ 82,483 10.66% $ 61,905 8.00% $ 77,381 10.00%
Tier 1 Capital (to risk-weighted assets) 75,377 9.74% 30,952 4.00% 46,429 6.00%
Tier 1 Capital (to average assets) 75,377 8.02% 30,952 4.00% 47,010 5.00%
- --------------------------------------------------------------------------------------------------------------------------------
As of December 31, 1998
Total Capital (to risk-weighted assets) $ 76,423 10.55% $ 57,941 8.00% $ 72,426 10.00%
Tier 1 Capital (to risk-weighted assets) 69,468 9.59% 28,970 4.00% 43,455 6.00%
Tier 1 Capital (to average assets) 69,468 7.83% 28,970 4.00% 36,213 5.00%
- --------------------------------------------------------------------------------------------------------------------------------
</TABLE>
CREDIT RISK
Suffolk makes loans based on the best evaluation possible of the
creditworthiness of the borrower. Even with careful underwriting, some loans
may not be repaid as originally agreed. To provide for this possibility,
Suffolk maintains an allowance for possible loan losses, based on an analysis
of the performance of the loans in its portfolio. The analysis includes
subjective factors based on management's judgment as well as quantitative
evaluation. Prudent, conservative estimates should produce an allowance that
will provide for a range of losses. According to generally accepted accounting
principles ("GAAP") a financial institution should record its best estimate.
Appropriate factors contributing to the estimate may include changes in the
composition of the institution's assets, or potential economic slowdowns or
downturns. Also important is the geographical or political environment in which
the institution operates. Suffolk's management considers all of these factors
when determining the provision for possible loan losses.
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The following table presents information about the allowance for possible loan
losses: (in thousand of dollars except ratios)
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------
FOR THE FOR THE THREE MONTHS ENDED
LAST 12 SEPT. 30 JUNE 30 MAR. 31 DEC. 31
MONTHS 1999 1999 1999 1998
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
ALLOWANCE FOR POSSIBLE LOAN LOSSES
Beginning Balance 7,041 7,173 7,086 6,955 7,041
Total Charge-offs 881 395 195 172 119
Total Recoveries 176 53 57 33 33
Provision for possible loan losses 770 275 225 270 -
- ------------------------------------------------------------------------------------------------------------------
Ending Balance 7,106 7,106 7,173 7,086 6,955
==================================================================================================================
COVERAGE RATIOS
Loans, net of discounts: average 656,060 689,600 676,969 635,636 622,035
at end of period 681,424 701,763 699,060 677,351 647,520
Non-performing Assets 2,054 1,485 2,099 2,453 2,178
Non-performing Assets/Total Loans (net of discount) 0.30% 0.21% 0.30% 0.36% 0.34%
Net Charge-offs/Average Net Loans (annualized) 0.11% 0.20% 0.08% 0.09% 0.06%
Allowance/Non-Accrual, Restructured, & OREO 357.11% 478.52% 341.73% 288.87% 319.33%
Allowance for Loan Losses/Net Loans 1.04% 1.01% 1.03% 1.05% 1.07%
- ------------------------------------------------------------------------------------------------------------------
</TABLE>
MARKET RISK
Suffolk originates and invests in interest-earning assets and solicits
interest-bearing deposit accounts. Suffolk's operations are subject to market
risk resulting from fluctuations in interest rates to the extent that there is
a difference between the amounts of interest-earning assets and
interest-bearing liabilities that are prepaid, withdrawn, mature, or reprice
in any given period of time. Suffolk's earnings or the net value of its
portfolio (the present value of expected cash flows from liabilities) will
change when interest rates change. The principal objective of Suffolk's
asset/liability management program is to maximize net interest income while
keeping risks acceptable. These risks include both the effect of changes in
interest rates, and risks to liquidity. The program also provides guidance to
management in funding Suffolk's investment in loans and securities. Suffolk's
exposure to interest-rate risk has not changed substantially since December 31,
1998.
READINESS FOR THE YEAR 2000
Suffolk has identified ways in which the year 2000 ("Y2K") may affect
its operations. Following is a summary of its readiness.
1. Suffolk's Readiness.
Suffolk is in the final phase of its evaluation and improvement of its internal
information systems. During the first quarter of 1998, Suffolk converted its
core-processing systems (including loans, deposits, and general ledger) to a
state-of-the-art distributed client-server system which is fully ready for Y2K.
Various accounting subsystems (non-core) have been evaluated, and all
modifications were made by December 15, 1998. As a banking corporation, Suffolk
relies mainly on its information systems to conduct business. Management does
not expect that technology embedded in microprocessors which may not work
properly after the year 2000 to have a material effect on Suffolk's operations
or profitability.
2. Cost to Address Y2K.
Management expects the cost of evaluating and modifying systems in preparation
for the year 2000 to be approximately $40,000 for 1999.
3. Risk of Y2K.
Management at Suffolk believes that it has made provision for its systems to
continue processing information correctly through and beyond the year 2000.
Management has also confirmed, in writing, that key providers of
11
<PAGE> 12
information have also made proper provision. However, Suffolk has no control
over the readiness of major utilities and communications networks. In the
opinion of management, the failure of such outside services presents the
greatest risk to Suffolk of Y2K problems.
4. Contingency Plan.
As a matter of standard practice, Suffolk maintains a disaster recovery plan
which is reviewed and updated annually. While Suffolk has no means of
accurately measuring risk to the systems of major utilities and communications
networks, its disaster recovery plan assumes that these systems may fail, both
for reasons related to Y2K, as well as for other reasons, and makes provision
for operations to continue without them, albeit with reduced efficiency.
5. Assessment of Suffolk's Readiness.
Suffolk's readiness for Y2K has been and continues to be evaluated by
management. It has been and will continue to be evaluated by its primary
banking regulator, the Office of the Comptroller of the Currency.
PART II
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K.
8-K filed October 13, 1999 reporting under Item 5, "Other Events."
8-K filed October 29, 1999 reporting under Item 5, "Other Events."
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.
SUFFOLK BANCORP
Date: November 15, 1999 /s/ Thomas S. Kohlmann.
----------------------------
Thomas S. Kohlmann
President & Chief Executive Officer
Date: November 15, 1999 /s/ J. Gordon Huszagh
----------------------------
J. Gordon Huszagh
Executive Vice President &
Chief Financial Officer
12
<TABLE> <S> <C>
<ARTICLE> 9
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-START> JAN-01-1999
<PERIOD-END> SEP-30-1999
<CASH> 65,972
<INT-BEARING-DEPOSITS> 0
<FED-FUNDS-SOLD> 15,200
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 105,130
<INVESTMENTS-CARRYING> 31,519
<INVESTMENTS-MARKET> 31,653
<LOANS> 701,763
<ALLOWANCE> 7,106
<TOTAL-ASSETS> 953,705
<DEPOSITS> 866,195
<SHORT-TERM> 0
<LIABILITIES-OTHER> 11,220
<LONG-TERM> 0
0
0
<COMMON> 76,290
<OTHER-SE> 0
<TOTAL-LIABILITIES-AND-EQUITY> 953,705
<INTEREST-LOAN> 43,984
<INTEREST-INVEST> 5,428
<INTEREST-OTHER> 890
<INTEREST-TOTAL> 50,302
<INTEREST-DEPOSIT> 15,458
<INTEREST-EXPENSE> 15,644
<INTEREST-INCOME-NET> 34,658
<LOAN-LOSSES> 770
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 22,676
<INCOME-PRETAX> 16,138
<INCOME-PRE-EXTRAORDINARY> 16,138
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 9,812
<EPS-BASIC> 1.62
<EPS-DILUTED> 1.61
<YIELD-ACTUAL> 5.64
<LOANS-NON> 1,045
<LOANS-PAST> 2,496
<LOANS-TROUBLED> 239
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 6,955
<CHARGE-OFFS> 762
<RECOVERIES> 143
<ALLOWANCE-CLOSE> 7,106
<ALLOWANCE-DOMESTIC> 7,106
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
