<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 June 30, 1999
Commission file number 0-13580
SUFFOLK BANCORP
(exact name of registrant as specified in its charter)
New York State 11-2708279
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
6 West Second Street, Riverhead, New York 11901
(Address of Principal Executive Offices) (Zip Code)
(Registrant's telephone number, including area code) (516) 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.
6,070,080 SHARES OF COMMON STOCK OUTSTANDING AS OF JUNE 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 June 30, 1999 and 1998 5
Consolidated Statements of Income, For the Six Months Ended June 30, 1999 and 1998 6
Statements of Cash Flows, For the Six Months Ended June 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>
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SUFFOLK BANCORP AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CONDITION
(unaudited, in thousands of dollars, except share and per share data)
<TABLE>
<CAPTION>
June 30, December 31,
1999 1998
--------- ---------
<S> <C> <C>
ASSETS
Cash & Due From Banks $ 70,141 $ 58,298
Federal Funds Sold 26,000 17,800
Investment Securities:
Available for Sale, at Fair Value 110,134 129,348
U.S. Government Agency Obligations 1,929 2,382
Obligations of States & Political Subdivisions 9,758 16,231
Corporate Bonds & Other Securities 3,368 3,240
--------- ---------
Total Investment Securities 125,189 151,201
Total Loans 699,060 647,520
Less: Allowance for Possible Loan Losses 7,173 6,955
--------- ---------
Net Loans 691,887 640,565
Premises & Equipment, Net 15,006 15,249
Other Real Estate Owned, Net 201 341
Accrued Interest Receivable, Net 5,291 5,365
Excess of Cost Over Fair Value of Net Assets Acquired 1,719 1,900
Other Assets 18,842 18,713
--------- ---------
TOTAL ASSETS 954,276 909,432
========= =========
LIABILITIES & STOCKHOLDERS' EQUITY
Demand Deposits 240,384 234,049
Savings, N.O.W.'s & Money Market Deposits 364,078 333,098
Time Certificates of $100,000 or more 24,075 25,861
Other Time Deposits 237,965 233,556
--------- ---------
Total Deposits 866,502 826,564
Dividend Payable on Common Stock 1,275 1,097
Accrued Interest Payable 2,166 2,867
Other Liabilities 9,746 7,059
--------- ---------
TOTAL LIABILITIES 879,689 837,587
--------- ---------
STOCKHOLDERS' EQUITY
Common Stock (par value $2.50; 15,000,000 shares authorized;
6,070,080 and 6,080,856 shares issued at June 30, 1999
& December 31, 1998, respectively) 19,026 19,026
Surplus 18,456 18,456
Treasury Stock at Par (1,540,340 shares and 1,529,564 shares, respectively) (3,851) (3,824
Undivided Profits 41,574 38,155
--------- ---------
75,205 71,813
Accumulated Other Comprehensive Income, Net of Tax (618) 32
--------- ---------
TOTAL STOCKHOLDERS' EQUITY 74,587 71,845
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY $ 954,276 909,432
========= =========
</TABLE>
See accompanying notes to consolidated financial statements.
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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
JUNE 30, 1999 JUNE 30,1998
<S> <C> <C>
INTEREST INCOME
Federal Funds Sold $ 217 $ 120
United States Treasury Securities 543 1,497
Obligations of States & Political Subdivisions (tax exempt) 152 209
U.S. Government Agency Obligations 849 186
Corporate Bonds & Other Securities 38 9
Loans 14,774 14,226
---------- ----------
Total Interest Income 16,573 16,247
INTEREST EXPENSE
Savings, N.O.W.'s & Money Market Deposits 1,927 1,847
Time Certificates of $100,000 or more 273 301
Other Time Deposits 2,903 3,133
Federal Funds Purchased 2 10
Interest on Other Borrowings 5 --
---------- ----------
Total Interest Expense 5,110 5,291
Net-interest Income 11,463 10,956
Provision for Possible Loan Losses 225 300
---------- ----------
Net-interest Income After Provision for Possible Loan Losses 11,238 10,656
OTHER INCOME
Service Charges on Deposit Accounts 1,086 1,083
Other Service Charges, Commissions & Fees 320 672
Fiduciary Fees 169 143
Other Operating Income 104 123
---------- ----------
Total Other Income 1,679 2,021
OTHER EXPENSE
Salaries & Employee Benefits 4,159 4,177
Net Occupancy Expense 559 640
Equipment Expense 587 583
Other Real Estate Expense 12 5
Other Operating Expense 2,278 2,087
---------- ----------
Total Other Expense 7,595 7,492
Income Before Provision for Income Taxes 5,322 5,185
Provision for Income Taxes 2,115 2,280
---------- ----------
NET INCOME $ 3,207 $ 2,905
========== ==========
AVERAGE: Common Shares Outstanding 6,070,080 6,095,356
Dilutive Stock Options 34,700 27,800
---------- ----------
AVERAGE TOTAL COMMON SHARES AND DILUTIVE OPTIONS 6,104,780 6,123,156
EARNINGS PER COMMON SHARE Basic $ 0.53 $ 0.47
Diluted $ 0.53 $ 0.47
</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
6/30/99 6/30/98
---------- ----------
<S> <C> <C>
INTEREST INCOME
Federal Funds Sold $ 315 $ 201
United States Treasury Securities 1,557 3,235
Obligations of States & Political Subdivisions 305 401
U.S. Government Agency Obligations 1,801 593
Corporate Bonds & Other Securities 112 19
Loans 28,845 28,190
---------- ----------
Total Interest Income 32,935 32,639
INTEREST EXPENSE
Savings, N.O.W.'s & Money Market Deposits 3,683 3,737
Time Certificates of $100,000 or more 579 651
Other Time Deposits 5,865 6,410
Federal Funds Purchased 169 82
Interest on Other Borrowings 15 70
---------- ----------
Total Interest Expense 10,311 10,950
Net-interest Income 22,624 21,689
Provision for Possible Loan Losses 495 600
---------- ----------
Net-interest Income After Provision 22,129 21,089
OTHER INCOME
Service Charges on Deposit Accounts 2,045 2,081
Other Service Charges, Commissions & Fees 521 1,137
Fiduciary Fees 336 258
Other Operating Income 242 463
---------- ----------
Total Other Income 3,144 3,939
OTHER EXPENSE
Salaries & Employee Benefits 8,434 8,195
Net Occupancy Expense 1,173 1,253
Equipment Expense 1,151 1,084
Other Real Estate Expense 13 28
Other Operating Expense 4,276 4,182
---------- ----------
Total Other Expense 15,047 14,742
Income Before Provision for Income Taxes 10,226 10,286
Provision for Income Taxes 3,996 4,475
---------- ----------
NET INCOME $ 6,230 $ 5,811
========== ==========
AVERAGE: Common Shares Outstanding 6,073,662 6,095,356
Dilutive Stock Options 34,700 27,800
---------- ----------
AVERAGE TOTAL 6,108,362 6,123,156
EARNINGS PER COMMON SHARE Basic $ 1.03 $ 0.95
Diluted $ 1.02 $ 0.94
</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 Six Months ENDED
JUNE 30, 1999 JUNE 30, 1998
------------- -------------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
NET INCOME $ 6,230 $ 5,811
ADJUSTMENTS TO RECONCILE NET INCOME TO NET CASH
Provision for Possible Loan Losses 495 600
Depreciation & Amortization 1,007 872
Amortization of Excess Cost Over Fair Value of Net Assets Acquired 181 181
Accretion of Discounts (634) (563)
Amortization of Premiums 315 62
Decrease (Increase) in Accrued Interest Receivable 74 (303)
Increase in Other Assets (84) (1,925)
Decrease in Accrued Interest Payable (701) (905)
Increase (Decrease) in Other Liabilities 2,865 (10,910)
-------- --------
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES 9,748 (7,080)
CASH FLOWS FROM INVESTING ACTIVITIES
Principal Payments on Investment Securities 500 4,184
Maturities of Investment Securities; Available for Sale 11,648 30,815
Purchases of Investment Securities; Available for Sale (5,299) (20,827)
Maturities of Investment Securities; Held to Maturity 78,000 10,591
Purchases of Investment Securities; Held to Maturity (59,617) (1,718)
Loan Disbursements & Repayments, Net (51,545) (26,075)
Purchases of Premises & Equipment, Net (764) (565)
Disposition of Other Real Estate Owned 95 351
-------- --------
NET CASH USED IN INVESTING ACTIVITIES (26,982) (3,244)
CASH FLOWS FROM FINANCING ACTIVITIES
Net Increase in Deposit Accounts 39,938 11,542
Dividends Paid to Shareholders (2,373) (2,194)
Treasury Shares Acquired (288) --
-------- --------
NET CASH PROVIDED BY FINANCING ACTIVITIES 37,277 9,348
NET INCREASE (DECREASE) IN CASH & CASH EQUIVALENTS 20,043 (976)
CASH & CASH EQUIVALENTS BEGINNING OF PERIOD 76,098 71,939
-------- --------
CASH & CASH EQUIVALENTS END OF PERIOD $ 96,141 $ 70,963
======== ========
</TABLE>
See accompanying notes to consolidated financial statements.
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<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 June 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 June 30, 1999 and 1998
NET INCOME
Net income was $3,207,000 for the quarter, ahead 10.4 percent from
$2,905,000 posted during the same period last year. Earnings per share for the
quarter were $0.53 versus $0.47, a gain of 12.8 percent.
INTEREST INCOME
Interest income was $16,573,000 for the second quarter of 1999, up 2.0
percent from $16,247,000 posted for the same quarter in 1998. Average net loans
during the second quarter of 1999 totaled $676,969,000, compared to $624,213,000
for the same period of 1998. During the second quarter of 1999, the yield was
8.19 percent (taxable-equivalent) on average earning assets of $813,753,000 down
from 8.58 percent on average earning assets of $763,988,000 during the second
quarter of 1998.
INTEREST EXPENSE
Interest expense for the second quarter of 1999 was $5,110,000, down
3.4 percent from $5,291,000 for the same period of 1998. Average deposits for
the second quarter 1999 were $828,972,000 up from $781,074,000 for the
comparable period in 1998.
NET INTEREST INCOME
Net interest income is the largest component of the Suffolk's earnings.
Net interest income for the second quarter of 1999 was $11,238,000, up from
$10,656,000 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 5.84
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 June 30, 1999
- ------------------------------------------------------------------------------------------------------------
Average Average
Balance Interest Rate
<S> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------
INTEREST-EARNING ASSETS
- ------------------------------------------------------------------------------------------------------------
U.S. treasury securities $ 39,633 $ 555 5.59%
Obligations of states & political subdivisions 14,886 231 6.20
U.S. govt. agency obligations 60,828 849 5.59
Corporate bonds & other securities 3,368 37 4.44
Federal funds sold & securities purchased
under agreements to resell 18,069 217 4.80
Loans, including non-accrual loans
Commercial, financial agricultural loans 125,902 2,707 8.60
Commercial real estate mortgages 144,155 3,188 8.85
Real estate construction loans 13,624 367 10.78
Residential mortgages (1st and 2nd liens) 75,400 1,845 9.79
Home equity loans 21,000 480 9.14
Consumer loans 293,224 6,187 8.44
Other loans (overdrafts) 3,664
- ------------------------------------------------------------------------------------------------------------
Total interest-earning assets $ 813,753 $ 16,663 8.19%
============================================================================================================
Cash & due from banks 62,440
Other non-interest-earning assets 39,174
- ------------------------------------------------------------------------------------------------------------
Total assets $ 915,367
- ------------------------------------------------------------------------------------------------------------
INTEREST-BEARING LIABILITIES
- ------------------------------------------------------------------------------------------------------------
Savings, N.O.W.'s & money market deposits $ 344,637 $ 1,927 2.24%
Time deposits 254,077 3,176 5.00
- ------------------------------------------------------------------------------------------------------------
Total savings & time deposits 598,714 5,103 3.41
Federal funds purchased & securities
sold under agreement to repurchase 194 2 5.14
Other borrowings 419 5 4.73
- ------------------------------------------------------------------------------------------------------------
Total interest-bearing liabilities $ 599,327 $ 5,110 3.41%
============================================================================================================
Rate spread 4.78%
Non-interest-bearing deposits $ 219,711
Other non-interest-bearing liabilities 23,924
- ------------------------------------------------------------------------------------------------------------
Total liabilities $ 842,962
Stockholders' equity 72,405
- ------------------------------------------------------------------------------------------------------------
Total liabilities & stockholders' equity $ 915,367
Net-interest income (taxable-equivalent basis)
& effective interest rate differential $ 11,553 5.68%
Less: taxable-equivalent basis adjustment (90)
- ------------------------------------------------------------------------------------------------------------
Net-interest income $ 11,463
============================================================================================================
</TABLE>
OTHER INCOME
Other income decreased to $1,679,000 for the three months compared to
$2,021,000 the previous year. Service charges on deposits were up 0.3 percent.
Service charges other than for deposits, commissions, and fees decreased by 52.4
percent. Trust revenue was up 18.2 percent. Other operating income was down 15.4
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 second quarter of 1999 was $7,595,000, up 1.4
percent from $7,492,000 for the comparable period in 1998.
CAPITAL RESOURCES
Stockholders' equity totaled $74,587,000 on June 30, 1999, an increase
of 3.8 percent from $71,845,000 on December 31, 1998. The ratio of equity to
assets was 7.8 percent at June 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 June 30, 1999
Total Capital (to risk-weighted assets) $80,457 10.49% $61,374 8.00% $76,717 10.00%
Tier I Capital (to risk-weighted assets) 73,284 9.55% 30,687 4.00% 46,030 6.00%
Tier I Capital (to average assets) 73,284 8.01% 30,687 4.00% 45,768 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 I Capital (to risk-weighted assets) 69,468 9.59% 28,970 4.00% 43,455 6.00%
Tier I 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 June 30 Mar. 31 Dec. 31 Sept. 30
Months 1999 1999 1998 1998
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Allowance for Possible Loan Losses
Beginning Balance 6,771 7,086 6,955 7,041 6,771
Total Charge-offs 595 195 172 119 109
Total Recoveries 202 57 33 33 79
Provision for possible loan losses 795 225 270 -- 300
- -------------------------------------------------------------------------------------------------------------------------------
Ending Balance 7,173 7,173 7,086 6,955 7,041
===============================================================================================================================
Coverage Ratios
Loans, net of discounts: average 640,788 676,969 635,636 622,035 628,510
at end of period 662,050 699,060 677,351 647,520 624,268
Non-performing Assets 2,246 2,099 2,453 2,178 2,253
Non-performing Assets/Total Loans (net of discount) 0.34% 0.30% 0.36% 0.34% 0.36%
Net Charge-offs/Average Net Loans (annualized) 0.06% 0.08% 0.09% 0.06% 0.02%
Allowance/Non-Accrual, Restructured, & OREO 315.61% 341.73% 288.87% 319.33% 312.52%
Allowance for Loan Losses/Net Loans 1.07% 1.03% 1.05% 1.07% 1.14%
- -------------------------------------------------------------------------------------------------------------------------------
</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
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<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 April 13, 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: August 13, 1999 /s/ Victor F. Bozuhoski, Jr.
---------------------------------
Victor F. Bozuhoski, Jr.
Executive Vice President &
Acting Chief Operating Officer
Date: August 13, 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> 3-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-START> JAN-01-1999
<PERIOD-END> JUN-30-1999
<CASH> 70,141
<INT-BEARING-DEPOSITS> 0
<FED-FUNDS-SOLD> 26,000
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 110,134
<INVESTMENTS-CARRYING> 15,055
<INVESTMENTS-MARKET> 15,092
<LOANS> 699,060
<ALLOWANCE> 7,173
<TOTAL-ASSETS> 954,276
<DEPOSITS> 866,502
<SHORT-TERM> 0
<LIABILITIES-OTHER> 13,187
<LONG-TERM> 0
0
0
<COMMON> 74,587
<OTHER-SE> 0
<TOTAL-LIABILITIES-AND-EQUITY> 954,276
<INTEREST-LOAN> 28,845
<INTEREST-INVEST> 3,775
<INTEREST-OTHER> 315
<INTEREST-TOTAL> 32,935
<INTEREST-DEPOSIT> 10,127
<INTEREST-EXPENSE> 10,311
<INTEREST-INCOME-NET> 22,624
<LOAN-LOSSES> 495
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 15,047
<INCOME-PRETAX> 10,226
<INCOME-PRE-EXTRAORDINARY> 10,226
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 6,230
<EPS-BASIC> 1.03
<EPS-DILUTED> 1.02
<YIELD-ACTUAL> 5.68
<LOANS-NON> 1,796
<LOANS-PAST> 2,582
<LOANS-TROUBLED> 201
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 6,955
<CHARGE-OFFS> 367
<RECOVERIES> 90
<ALLOWANCE-CLOSE> 7,173
<ALLOWANCE-DOMESTIC> 7,173
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
