UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the Quarterly Period Ended June 30, 1999
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the Transition Period from ________ to __________
Commission file number 2-94292
FNB Banking Company
-------------------
(Exact name of registrant as specified in its charter)
Georgia 58-1479370
------- ----------
(State of Incorporation) (I.R.S. Employer Identification No.)
318 South Hill Street
Griffin, Georgia 30224
---------------- -----
(Address of principal executive offices) (Zip Code)
770-227-2251
------------
(Telephone Number)
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 XX NO
----- ----
Common stock, par value $1 per share: 789,275 shares
outstanding as of July 22, 1999.
<PAGE>
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FNB BANKING COMPANY AND SUBSIDIARY
INDEX
<TABLE>
<CAPTION>
Page No.
--------
<S> <C> <S> <C>
PART I FINANCIAL INFORMATION
Item 1. Financial Statements
Consolidated Balance Sheet (Unaudited) at June 30, 1999 3
Consolidated Statements of Earnings (Unaudited) for the Three
Months and the Six Months Ended June 30, 1999 and 1998 4
Consolidated Statements of Comprehensive Income (Unaudited)
for the Three Months and the Six Months Ended June 30, 1999 and 1998 5
Consolidated Statements of Cash Flows (Unaudited) for the Six
Months Ended June 30, 1999 and 1998 6
Notes to Consolidated Financial Statements (Unaudited) 7
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations 8-11
PART II. OTHER INFORMATION
Item 1. Legal Proceedings 12
Item 2. Changes in Securities 12
Item 3. Defaults Upon Senior Securities 12
Item 4. Submission of Matters to a Vote of Security Holders 12
Item 5. Other Information 12
Item 6. Exhibits and Reports on Form 8-K 12
</TABLE>
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<PAGE>
<PAGE>
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
FNB BANKING COMPANY AND SUBSIDIARY
Consolidated Balance Sheet
June 30, 1999
(Unaudited)
<TABLE>
<CAPTION>
Assets
------
<S> <C>
Cash and due from banks $ 10,021,481
Federal funds sold 3,305,653
Interest-bearing deposits with other banks 500,000
Investment securities available for sale 32,221,441
Other investments 721,600
Mortgage loans held for sale 1,357,770
Loans 151,642,886
Less: Unearned income (352,095)
Allowance for loan losses (2,322,642)
-------------
Loans, net 148,968,149
Premises and equipment, net 8,254,228
Other assets 1,625,922
-------------
$ 206,976,244
=============
Liabilities and Stockholders' Equity
------------------------------------
Liabilities:
Deposits:
Noninterest-bearing $ 28,900,781
Interest-bearing 151,898,830
-------------
Total deposits 180,799,611
FHLB advances 1,473,214
Notes payable 361,113
Other liabilities 1,167,928
-------------
Total liabilities 183,801,866
-------------
Stockholders' equity:
Common stock, $1 par value; authorized
5,000,000 shares; issued and outstanding
796,099 shares 796,099
Retained earnings 21,670,272
Accumulated other comprehensive income 708,007
-------------
Total stockholders' equity 23,174,378
-------------
$ 206,976,244
=============
See accompanying notes to consolidated financial statements.
</TABLE>
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<PAGE>
<PAGE>
FNB BANKING COMPANY AND SUBSIDIARY
Consolidated Statements of Earnings
For the Three Months and the Six Months Ended June 30, 1999 and 1998
(Unaudited)
<TABLE>
<CAPTION>
Three Months Six Months
Ended Ended
1999 1998 1999 1998
---- ---- ---- -----
<S> <C> <C> <C> <C>
Interest income:
Loans $ 3,930,731 3,850,286 7,713,242 7,654,111
Investment securities:
Tax exempt 105,749 88,793 196,726 177,372
Taxable 368,323 328,170 719,560 595,877
Federal funds sold 97,009 119,144 235,679 252,335
---------- ---------- ---------- ----------
Total interest income 4,501,812 4,386,393 8,865,207 8,679,695
---------- ---------- ---------- ----------
Interest expense:
Deposits 1,574,791 1,570,288 3,163,151 3,088,977
Federal funds purchased and FHLB advances 28,982 23,172 64,149 46,843
Notes payable 6,490 10,168 13,526 20,870
---------- ---------- ---------- ----------
Total interest expense 1,610,263 1,603,628 3,240,826 3,156,690
---------- ---------- ---------- ----------
Net interest income 2,891,549 2,782,765 5,624,381 5,523,005
Provision for loan losses 675,268 129,625 1,094,868 273,575
---------- ---------- ---------- ----------
Net interest income after provision for loan losses 2,216,281 2,653,140 4,529,513 5,249,430
---------- ---------- ---------- ----------
Other operating income:
Service charges on deposit accounts 360,118 365,542 723,117 710,637
Fees for trust services 30,000 30,000 60,000 60,000
Securities gains, net - - - 2,453
Other operating income 119,577 167,017 356,923 308,766
---------- ---------- ---------- ----------
Total other operating income 509,695 562,559 1,140,040 1,081,856
---------- ---------- ---------- ----------
Other operating expense:
Salaries and other personnel expense 1,264,236 1,207,194 2,539,435 2,380,875
Net occupancy and equipment expense 391,056 346,940 783,586 710,064
Other operating expense 579,383 629,903 1,164,483 1,173,333
---------- ---------- ---------- ----------
Total other operating expense 2,234,675 2,184,037 4,487,504 4,264,272
---------- ---------- ---------- ----------
Earnings before income taxes 491,301 1,031,662 1,182,049 2,067,014
Income taxes 122,063 350,888 330,577 700,247
---------- ---------- ---------- ----------
Net earnings $ 369,238 680,774 851,472 1,366,767
========== ========== ========== ==========
Earnings per common share based on average outstanding
shares of 798,028, 807,800, 802,887 and 807,800,
respectively:
Net earnings per share $ .46 .84 1.06 1.69
=== === ==== ====
Dividends declared per common share $ .60 .60 .60 .60
=== === ==== ====
See accompanying notes to consolidated financial statements.
</TABLE>
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<PAGE>
<PAGE>
FNB BANKING COMPANY AND SUBSIDIARY
Consolidated Statements of Comprehensive Income
For the Three Months and the Six Months Ended June 30, 1999 and 1998
(Unaudited)
<TABLE>
<CAPTION>
Three Months Six Months
Ended Ended
1999 1998 1999 1998
---- ---- ---- ----
<S> <C> <C> <C> <C>
Net earnings $ 369,238 680,774 851,472 1,366,767
Other comprehensive income, net of tax:
Unrealized gains on securities available for sale:
Holding gains (loss) arising during period, net of tax
of $45,699, $29,997, $177,451 and $203,588 (74,562) (48,943) (289,525) 332,170
Reclassification adjustment for (gains) losses included
in net earnings, net of tax of $932 - - - (1,521)
---------- -------- --------- ----------
Total other comprehensive income (loss) (74,562) (48,943) (289,525) 330,649
---------- -------- --------- ----------
Comprehensive income $ 294,676 631,831 561,947 1,697,416
========== ======== ========= ==========
</TABLE>
See accompanying notes to consolidated financial statements.
- 5 -
<PAGE>
<PAGE>
FNB BANKING COMPANY AND SUBSIDIARY
Consolidated Statements of Cash Flows
For the Six Months Ended June 30, 1999 and 1998
(Unaudited)
<TABLE>
<CAPTION>
Six Months Ended June 30,
1999 1998
---- ----
<S> <C> <C>
Cash flows from operating activities:
Net earnings $ 851,472 1,366,767
Adjustments to reconcile net earnings to net
cash provided by operating activities:
Provision for loan losses 1,094,868 273,575
Gain on sale of repossessed collateral (87,596) -
Depreciation, amortization and accretion 318,684 233,340
Gains on sales of investment securities - (2,453)
Change in assets and liabilities:
Interest receivable (26,640) (95,468)
Interest payable (34,592) (34,122)
Other, net (137,807) 58,626
Mortgage loans held for sale 1,191,655 146,530
----------- -----------
Net cash provided by operating activities 3,170,044 1,946,795
----------- -----------
Cash flows from investing activities:
Proceeds from maturities and paydowns of
investment securities held to maturity 548,795 1,553,466
Proceeds from maturities and paydowns of
investment securities available for sale 4,562,972 1,155,685
Proceeds from sales of investment securities available for sale - 1,051,333
Purchases of investment securities available for sale (9,151,194) (10,020,581)
Net change in loans (3,102,849) (3,282,974)
Proceeds from sale of other investments 104,100 -
Purchases of premises and equipment (300,125) (1,019,875)
Proceeds from sale of repossessed collateral 19,633 23,477
----------- -----------
Net cash used by investing activities (7,318,668) (10,539,469)
----------- -----------
Cash flows from financing activities:
Net change in deposits 6,255,210 2,283,478
Repayments of long-term debt (83,333) (83,333)
Repayments of FHLB Advances (919,643) (142,857)
Purchase and retirement of common stock (468,040) -
Dividends paid (525,070) (484,680)
----------- -----------
Net cash provided by financing activities 4,259,124 1,572,608
----------- -----------
Net change in cash and cash equivalents 110,500 (7,020,066)
Cash and cash equivalents at beginning of period 13,216,634 21,775,498
----------- -----------
Cash and cash equivalents at end of period $ 13,327,134 14,755,432
=========== ===========
Supplemental cash flow information:
Cash paid for income taxes $ 415,000 689,500
Cash paid for interest $ 3,275,418 3,190,812
Noncash investing and financing activities:
Change in net unrealized (gains) losses on investment securities
available for sale, net of tax $ 289,525 (330,649)
Transfers of loans to other real estate $ 236,583 67,375
Financed sales of other real estate $ 332,662 33,983
</TABLE>
See accompanying notes to consolidated financial statements.
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<PAGE>
<PAGE>
FNB BANKING COMPANY AND SUBSIDIARY
Notes to Consolidated Financial Statements
(Unaudited)
(1) Basis of Presentation
---------------------
The consolidated financial statements include the accounts of FNB
Banking Company (the Company) and its wholly-owned subsidiary, the
First National Bank of Griffin (Griffin). All significant
intercompany accounts and transactions have been eliminated in
consolidation.
The consolidated financial information furnished herein reflects
all adjustments which are, in the opinion of management, necessary
to present a fair statement of the results of operations and
financial position for the periods covered herein. All such
adjustments are of a normal recurring nature.
(2) Cash and Cash Equivalents
-------------------------
For presentation purposes in the consolidated statements, cash and
cash equivalents include cash on hand, amounts due from banks and
federal funds sold.
Stock Repurchase and Retirement
-------------------------------
In May 1999 the Company redeemed and retired 11,701 shares of its
$1 par value common stock for a total purchase price of $468,040.
Additionally, on July 1, 1999, the Company redeemed and retired
6,824 shares of its common stock.
(4) Implementation of Recent Accounting Pronouncements
--------------------------------------------------
The Company adopted Statement of Financial Standards No. 133,
"Accounting for Derivative Instruments and Hedging Activities",
("SFAS No. 133") during the second quarter of 1999. As allowed by
SFAS No. 133, an entity may transfer any held to maturity security
into the available for sale or trading category without calling
into question the entity's intent to hold other securities to
maturity in the future. The result of the transfer of held to
maturity securities to the available for sale category was to
increase stockholders' equity approximately $4,000. There were no
other financial statement effects associated with the implementation
of SFAS No. 133.
- 7 -
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<PAGE>
Item 2.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
For the Six Months in the Periods Ended
June 30, 1999 and 1998
FORWARD-LOOKING STATEMENT
This discussion contains forward-looking statements under the
Private Securities Litigation Reform Act of 1995 that involve risks
and uncertainties. Although the Company believes that the assumptions
underlying the forward-looking statements contained in the discussion
are reasonable, any of the assumptions could be inaccurate, and
therefore, no assurance can be made that any of the forward-looking
statements included in this discussion will be accurate. Factors that
could cause actual results to differ from results discussed in
forward-looking statements include, but are not limited to: economic
conditions (both generally and in the markets where the Company
operates); competition from other providers of financial services
offered by the Company; government regulation and legislation; changes
in interest rates; material unforeseen changes in the financial
stability and liquidity of the Company's credit customers; material
unforeseen complications related to the Year 2000 issues for the
Company, its suppliers, customers and governmental agencies, all of
which are difficult to predict and which may be beyond the control of
the Company. The Company undertakes no obligation to revise forward-
looking statements to reflect events or changes after the date of this
discussion or to reflect the occurrence of unanticipated events.
FINANCIAL CONDITION
Total assets at June 30, 1999, were $206,976,244 representing a
$4,194,329 (2.07%) increase from December 31, 1998. Deposits increased
$6,255,210 (3.58%) from December 31, 1998. Loans increased $2,709,897
(1.82%). The allowance for loan losses at June 30, 1999, totaled
$2,322,642, representing 1.53% of total loans compared to December 31,
1998, total of $1,707,913 representing 1.15% of total loans. Cash and
cash equivalents increased $110,500 from December 31, 1998.
The total of nonperforming assets which includes nonaccruing
loans, repossessed collateral and loans for which payments are more
than 90 days past due decreased 51.17% or $524,000 from $1,548,000 at
December 31, 1998, to $1,024,000 at June 30, 1999. The decrease is due
to a reduction of past due loans less than 90 days and still accruing
interest by approximately $207,000 and the charge-off of a commercial
loan of $218,000 during the first six months of 1999. There were no
related party loans which were considered nonperforming at June 30,
1999.
The Company's subsidiary bank was most recently examined by its
primary regulatory authority in July 1999. There were no
recommendations by the regulatory authority that in management's
opinion will have material effects on the Company's liquidity, capital
resources or operations.
RESULTS OF OPERATIONS
For the six months ended June 30, 1999, the Company reported net
income of $851,472, or $1.06 per share, compared to $1,366,767, or
$1.69 per share, for the same period in 1998. Net income for the six
months ended June 30, 1999, decreased $515,295 or 37.70%, compared to
the same period in 1998. The decrease was the primary result of the
increase in the provision of loan losses of $821,293, compared to the
same period in 1998.
Net interest income increased $101,376 (1.84%) in the first six
months of 1999 compared to the same period for 1998. Interest income
for the first six months of 1999 was $8,865,207, representing an
increase of $185,512 (2.14%) over the same period in 1998. Interest
expense for the first six months of 1999 increased $84,136 (2.67%)
compared to the same period in 1998. The increase in interest income
and interest expense during the first six months of 1999 compared to
the same period in 1998 is primarily attributable to the increase in
the volume of both loans and deposits.
The provision for loan losses for the six months of 1999 increased
$821,293 compared to the same period for 1998. The increase is
primarily attributable to one commercial loan relationship of
approximately $1,120,000 that has been downgraded to substandard and a
possible substantial loss could be realized on this relationship
throughout the remainder of the year. Net loan charge-offs for the six
months ended June 30, 1999, were $408,000, compared to $744,000, for
the same period in 1998. It is management's belief that the allowance
for loan losses is adequate to absorb probable losses in the
portfolio.
Other operating income increased for the six months ended June 30,
1999, by $58,184 or 5.38%, compared to the same period in 1998,
primarily due to two other real estate properties that were sold and
gains of $87,596 were recognized on those sales during 1999.
- 8 -
<PAGE>
<PAGE>
Other operating expenses for the six months of 1999 increased
$223,232 (5.23%) compared to the first six months in 1997. The net
increase is primarily attributable to an increase in employee costs of
$172,000, due to a combination of additional employees and salary
increases of the existing workforce, and an increase in depreciation
expense of $123,000 related to Year 2000 purchases and capital
improvements.
- 9 -
<PAGE>
<PAGE>
Item 2.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS, continued
For the Six Months in the Periods Ended
June 30, 1999 and 1998
CAPITAL
The following tables present FNB Banking Company's regulatory capital
position at June 30, 1999:
Risk-Based Capital Ratios
-------------------------
Tier 1 Tangible Capital, Actual 14.7%
Tier 1 Tangible Capital minimum requirement 4.0%
------
Excess 10.7%
------
Total Capital, Actual 16.2%
Total Capital minimum requirement 8.0%
------
Excess 8.2%
======
Leverage Ratio
--------------
Tier 1 Tangible Capital to adjusted total assets
("Leverage Ratio") 10.8%
Minimum leverage requirement 4.0%
-----
Excess 6.8%
=====
YEAR 2000 PREPAREDNESS
The use of computer software that relies on a two digit number to
define the applicable year may cause processing problems for computer
controlled systems when the Year 2000 arrives. Malfunction could occur
at several other noted dates as well, such as September 9, 1999. In
view of the potential adverse impact of the Year 2000 problem on the
Company and its subsidiary bank, its customers and its ability to
continue to operate as a business, careful planning must be undertaken
to ensure minimal disruption. The Company has established a
centralized function to implement a process to this end.
The Company's subsidiary, FNB Griffin, performs most of its data
processing in-house using purchased banking software and hardware for
its main applications, such as loans and deposits. Included in these
in-house operations are a teller processing system, a check sorter
system, a check imaging system, and a trust processing system. Besides
its main applications, the bank has a number of ancillary systems
connected to various vendors to process specific work, such as
automated teller machines, credit cards, accounts receivable and
accounts payable, mortgage loans, payroll and the like. In addition,
the Bank uses several non-information systems that are vital to its
operation. These include vault and alarm systems, communications,
postal services, utilities and such.
The Bank is also aware of the potential exposure it has to its
viability as a business based on the Year 2000 preparedness of third
parties such as its customers and correspondent banking relationships
including the Federal Reserve Bank.
- 10 -
<PAGE>
<PAGE>
THE BANK'S STATE OF READINESS
The Bank is under the authority of the Office of the Comptroller of
the Currency (the "OCC") who working together with the other bank
regulatory agencies have released an Interagency Statement under which
guidance the Bank is managing the Year 2000 project. This Statement
describes five phases: Awareness, Assessment, Renovation, Validation
and Implementation, and established timelines for completion of each
phase. The Bank believes its mission critical applications are within
those guidelines. The Bank believes that all necessary remediations
were completed prior to December 31, 1998.
The Bank established a credit risk management program and a liquidity
risk program to review its business relationships for Year 2000
readiness and determine any potential risks or exposure. This program
includes letters and questionnaires to major deposit and loan
customers, certain suppliers and vendors. The Bank believes that any
issues that may arise due to customer or vendor risk will be
manageable.
COSTS ASSOCIATED WITH THE BANK'S YEAR 2000 ISSUES
To date, the Bank has spent approximately $500 thousand on upgrading
hardware and software. It has spent at least $100 thousand on testing,
including costs for outside reviews and consultants. Soft costs
including employee time and other resources are estimated to reach
$150 thousand. Many of the upgrades would have occurred in the normal
course of business over the next several years, but were accelerated
due to the Year 2000 issue.
RISK OF THE BANK'S YEAR 2000 ISSUES
All the bank's major systems have been remediated and tested. Testing
is complete for all other systems and review of the testing
documentation is also complete. While the Bank believes it will be
adequately prepared, no assurances can be given that it will not be
exposed to potential losses resulting from problems with its internal
systems associated with the century date change.
Further, the impact of non-compliance by outside parties cannot be
accurately determined. The Year 2000 issue may have a material impact
on the financial condition of the Bank if borrowers of the Bank become
insolvent and are unable to repay loans.
This Bank and others are reliant on the Federal Reserve Bank of
Atlanta to process much of its work. While some functions, such as
wire transfers, could continue by telephone if the Federal Reserve's
automated system does not perform as expected, certain applications,
such as check processing and automated clearing house transactions are
critical to the operation of the Bank, and if disrupted, would
seriously impact the Bank's ability to serve its customers. The Bank
believes the Federal Reserve Bank of Atlanta is aggressively pursuing
a Year 2000 compliance strategy and that the risk of their non-
compliance is slight, but it is beyond the control of the Bank and
must be considered.
Other outsiders whose non-compliance could severely impact the Bank
include the local power provider and telephone companies.
THE BANK'S CONTINGENCY PLANS
The Bank has a Business Disruption Contingency Plan that would be
implemented in the event of any internal or external system failure.
The Plan calls for switching to PC or manual processing, depending on
the system and the nature of the failure. The Bank is continually
reviewing and refining its plan. The Bank believes it could continue
to operate regardless of the failure. It has plans to make loans and
process deposits, receive and disperse cash and update account
balances.
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<PAGE>
<PAGE>
PART II. OTHER INFORMATION
FNB BANKING COMPANY AND SUBSIDIARY
Item 1. Legal Proceedings
-----------------
None
Item 2. Changes in Securities
---------------------
None
Item 3. Defaults Upon Senior Securities
-------------------------------
None
Item 4. Submission of Matters to a Vote of Security Holders
(a) FNB Banking Company's annual meeting of stockholders was
held on April 15, 1999.
(b) The following is a summary of matters submitted to a vote
of security holders:
1. The election * of the following directors to serve the
current year term:
C.A. Knowles
James A. Mankin
Ernest F. Carlisle, III
John T. Newton, Jr.
David G. Newton
J. Henry Cheatham, III
Gilliam Cheatham
A tabulation of votes concerning the above issues is as follows:
Director
Election
--------
Shares voted by proxy in favor 565,245
Shares voted in person in favor 131,275
Shares voted in person against -
Shares abstained from voting -
--------
Total shares represented 696,520
========
Total shares outstanding 807,800
========
* - Directors were elected by slate, not individually. Vote
tabulation is therefore by slate.
Item 5. Other Information
-----------------
None
Item 6. Exhibits and Reports on Form 8-K
--------------------------------
None
- 12 -
<PAGE>
<PAGE>
FNB BANKING COMPANY AND SUBSIDIARY
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.
FNB BANKING COMPANY
By: /s/ C.A. Knowles
-----------------------------------
C.A. Knowles, President and
Treasurer (Principal Executive
Officer)
Date: 8/10/99
---------------------------------
By: /s/ William K. Holmes
-----------------------------------
William K. Holmes
Assistant Treasurer
(Principal Accounting Officer)
Date: 8/10/99
---------------------------------
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<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> 10,021,481
<INT-BEARING-DEPOSITS> 151,898,830
<FED-FUNDS-SOLD> 3,305,653
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 32,221,441
<INVESTMENTS-CARRYING> 0
<INVESTMENTS-MARKET> 0
<LOANS> 148,968,149
<ALLOWANCE> 2,322,642
<TOTAL-ASSETS> 206,976,244
<DEPOSITS> 180,799,611
<SHORT-TERM> 0
<LIABILITIES-OTHER> 1,167,928
<LONG-TERM> 1,834,327
0
0
<COMMON> 798,099
<OTHER-SE> 22,378,279
<TOTAL-LIABILITIES-AND-EQUITY> 206,976,244
<INTEREST-LOAN> 7,713,242
<INTEREST-INVEST> 916,286
<INTEREST-OTHER> 235,679
<INTEREST-TOTAL> 8,865,207
<INTEREST-DEPOSIT> 3,163,151
<INTEREST-EXPENSE> 3,240,826
<INTEREST-INCOME-NET> 5,624,381
<LOAN-LOSSES> 1,094,868
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 4,487,504
<INCOME-PRETAX> 1,182,049
<INCOME-PRE-EXTRAORDINARY> 1,182,049
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 851,472
<EPS-BASIC> 1.06
<EPS-DILUTED> 0
<YIELD-ACTUAL> 6.10
<LOANS-NON> 906,000
<LOANS-PAST> 198,000
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 1,707,913
<CHARGE-OFFS> 612,595
<RECOVERIES> 132,457
<ALLOWANCE-CLOSE> 2,322,643
<ALLOWANCE-DOMESTIC> 2,322,643
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
