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 September 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: 788,924 shares
outstanding as of October 26, 1999
<PAGE>
<PAGE>
<TABLE>
FNB BANKING COMPANY AND SUBSIDIARY
INDEX
<CAPTION>
PAGE NO.
PART I FINANCIAL INFORMATION
<S> <S> <S> <C>
Item 1. Financial Statements
Consolidated Balance Sheet (unaudited) at September 30, 1999 3
Consolidated Statements of Earnings (unaudited) for the Three
Months and the Nine Months Ended September 30, 1999 and 1998 4
Consolidated Statements of Comprehensive Income (unaudited) for the
Three Months and the Nine Months Ended September 30, 1999 and 1998 5
Consolidated Statements of Cash Flows (unaudited) for the
Nine Months Ended September 30, 1999 and 1998 6-7
Notes to Consolidated Financial Statements (unaudited) 8
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations 9-12
PART II. OTHER INFORMATION
Item 1. Legal Proceedings 13
Item 2. Changes in Securities 13
Item 3. Defaults Upon Senior Securities 13
Item 4. Submission of Matters to a Vote of Security Holders 13
Item 5. Other Information 13
Item 6. Exhibits and Reports on Form 8-K 13
</TABLE>
-2-
<PAGE>
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
FNB BANKING COMPANY AND SUBSIDIARY
Consolidated Balance Sheet
September 30, 1999
(Unaudited)
<TABLE>
<CAPTION>
Assets
------
<S> <C>
Cash and due from banks $ 15,034,748
Federal funds sold 5,161,387
Interest-bearing deposits with other banks 500,000
Investment securities available for sale 32,419,015
Other investments 721,600
Mortgage loans held for sale 754,551
Loans 151,715,029
Less: Unearned income (319,206)
Allowance for loan losses (2,485,800)
-------------
Loans, net 148,910,023
Premises and equipment, net 8,122,387
Other assets 1,595,095
-------------
$ 213,218,806
=============
Li1abilities and Stockholders' Equity
-------------------------------------
Liabilities:
Deposits:
Noninterest-bearing $ 31,092,032
Interest-bearing 156,830,943
--------------
Total deposits 187,922,975
FHLB advances 1,441,964
Notes payable 319,446
Other liabilities 444,366
--------------
Total liabilities 190,128,751
Stockholders' equity:
Common stock, $1 par value; authorized 5,000,000 shares;
issued and outstanding 789,095 shares 789,095
Retained earnings 21,994,990
Accumulated other comprehensive income 305,970
--------------
Total stockholders' equity 23,090,055
--------------
$ 213,218,806
==============
</TABLE>
See accompanying notes to consolidated financial statements.
-3-
<PAGE>
<TABLE>
FNB BANKING COMPANY AND SUBSIDIARY
Consolidated Statements of Earnings
<CAPTION>
For the Three Months and the Nine Months Ended September 30, 1999 and 1998
(Unaudited)
Three Months Ended Nine Months Ended
------------------ -----------------
1999 1998 1999 1998
---- ---- ---- ----
<S> <C> <C> <C> <C>
Interest income:
Loans $3,843,104 4,000,318 11,556,346 11,654,429
Investment securities:
Tax exempt 108,997 90,912 305,723 268,284
Taxable 377,373 377,663 1,096,933 973,540
Federal funds 90,725 29,779 326,404 282,114
---------- --------- ---------- ----------
Total interest income 4,420,199 4,498,672 13,285,406 13,178,367
---------- --------- ---------- ----------
Interest expense:
Deposits 1,562,733 1,585,666 4,725,884 4,674,643
Federal funds purchased and FHLB advances 21,392 24,683 85,541 71,526
Notes payable 5,933 9,403 19,459 30,273
---------- --------- ---------- ----------
Total interest expense 1,590,058 1,619,752 4,830,884 4,776,442
---------- --------- ---------- ----------
Net interest income 2,830,141 2,878,920 8,454,522 8,401,925
Provision for loan losses 250,000 124,400 1,344,868 397,975
---------- --------- ---------- ----------
Net interest income after provision for loan losses 2,580,141 2,754,520 7,109,654 8,003,950
---------- --------- ---------- ----------
Other income:
Service charges on deposit accounts 394,389 386,002 1,117,506 1,096,639
Fees for trust services 30,000 30,000 90,000 90,000
Net loss on securities transactions -- (6,778) -- (4,325)
Other operating income 146,163 210,150 503,086 518,916
---------- --------- ---------- ----------
Total other income 570,552 619,374 1,710,592 1,701,230
---------- --------- ---------- ----------
Other expense:
Salaries and other personnel expense 1,315,883 1,219,832 3,855,318 3,600,707
Net occupancy and equipment expense 424,608 388,701 1,208,194 1,098,765
Other operating expense 510,342 544,853 1,674,825 1,718,186
---------- --------- ---------- ----------
Total other expense 2,250,833 2,153,386 6,738,337 6,417,658
---------- --------- ---------- ----------
Earnings before income taxes 899,860 1,220,508 2,081,909 3,287,522
Income taxes 301,986 420,089 632,563 1,120,336
---------- --------- ---------- ----------
Net earnings $ 597,874 800,419 1,449,346 2,167,186
========== ========= ========= =========
Earnings per common share based on average
outstanding shares of 789,255, 807,800, 798,294 and
807,800, respectively:
Net earnings per share $ 0.76 0.99 1.82 2.68
========== ========= ========= =========
Dividends per share $ -- -- 0.60 0.60
========== ========= ========= =========
</TABLE>
See accompanying notes to consolidated financial statements.
-4-
<PAGE>
<TABLE>
<CAPTION>
FNB BANKING COMPANY AND SUBSIDIARY
Consolidated Statements of Comprehensive Income
For the Three Months and the Nine Months Ended September 30, 1999 and 1998
(Unaudited)
Three Months Nine Months
Ended Ended
1999 1998 1999 1998
---- ---- ---- ----
<S> <C> <C> <C> <C>
Net earnings $ 597,874 800,419 1,449,346 2,167,186
Other comprehensive income, net of tax:
Unrealized gains on securities available for sale:
Holding gains (loss) arising during period, net of tax
of $246,410, $101,766, $423,861 and $101,891 (402,037) (170,240) (691,562) 161,929
Reclassification adjustment for losses included in
net earnings, net of tax of $2,576 and $1,643 -- 4,202 -- 2,682
--------- -------- ---------- ---------
Total other comprehensive income (loss) (402,037) (166,038) (691,562) 164,611
--------- -------- ---------- ---------
Comprehensive income $ 195,837 634,381 757,784 2,331,797
========= ======== ========== =========
</TABLE>
See accompanying notes to consolidated financial statements.
-5-
<PAGE>
<TABLE>
<CAPTION>
FNB BANKING COMPANY AND SUBSIDIARY
Consolidated Statements of Cash Flows
For the Nine Months Ended September 30, 1999 and 1998
(Unaudited)
Nine Months Ended
September 30,
1999 1998
---- ----
<S> <C> <C>
Cash flows from operating activities:
Net earnings $ 1,449,346 2,167,186
Adjustments to reconcile net earnings to net
cash provided by operating activities:
Provision for loan losses 1,344,868 397,975
Depreciation, amortization and accretion 476,866 376,565
Loss on securities transactions -- 4,325
Gain on sale of repossessed collateral (87,596) --
Change in assets and liabilities:
Interest receivable 59,340 25,373
Interest payable (32,353) (4,934)
Other, net (194,693) 189,761
Mortgage loans held for sale 1,794,874 (24,221)
------------ ---------
Net cash provided by operating activities 4,810,652 3,132,030
------------ ---------
Cash flows from investing activities:
Proceeds from maturities and paydowns of
investment securities held to maturity 548,795 1,869,470
Proceeds from maturities and paydowns
of investment securities available for sale 5,698,168 2,589,300
Proceeds from sales of investment securities available for sale -- 1,942,216
Purchases of investment securities available for sale (11,137,362) (12,024,800)
Proceeds from sales of other investments 104,100 --
Change in loans (3,294,723) (5,685,860)
Purchases of premises and equipment (336,329) (1,320,827)
Proceeds from sale of premises and equipment 14,815 --
Change in interest-bearing deposits with other banks -- (2,000,000)
Proceeds from sales of repossessed collateral 19,633 23,477
------------ ---------
Net cash used by investing activities (8,382,903) (14,607,024)
------------ ---------
Cash flows from financing activities:
Net change in deposits 13,378,574 776,965
Repayments of long-term debt (125,000) (125,000)
Repayments of FHLB advances (950,893) (142,857)
Purchase and retirement of common stock (748,200) --
Dividends paid (1,002,729) (969,360)
------------ ---------
Net cash provided (used) by financing activities 10,551,752 (460,252)
------------ ---------
Net increase (decrease) in cash and cash equivalents 6,979,501 (11,935,246)
Cash and cash equivalents at beginning of the period 13,216,634 21,775,498
------------ ---------
Cash and cash equivalents at end of period $ 20,196,135 9,840,252
============ =========
</TABLE>
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<PAGE>
FNB BANKING COMPANY AND SUBSIDIARY
Consolidated Statements of Cash Flows, continued
For the Nine Months Ended September 30, 1999 and 1998
(Unaudited)
<TABLE>
<CAPTION>
Nine Months Ended
September 30,
1999 1998
---- ----
<S> <C> <C>
Supplemental cash flow information:
Cash paid for income taxes $ 701,000 983,000
Cash paid for interest $ 4,863,237 4,781,376
</TABLE>
See accompanying notes to consolidated financial statements.
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<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.
(3) 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, and on September 20, 1999, redeemed and retired 180 shares for a
total purchase price of $272,960 and $7,200, respectively. Subsequent to
September 30, 1999, the Company has redeemed and retired an additional 171
shares of its common stock.
(4) Implementation of Recent Accounting Pronouncements
--------------------------------------------------
The Company adopted Statement of Financial Accounting 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.
-8-
<PAGE>
Item 2.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
For the Nine Months in the Periods Ended
September 30, 1999 and 1998
FORWARD-LOOKING STATEMENTS
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 September 30, 1999, were $213,218,806 representing a
$10,436,891 (5.15%) increase from December 31, 1998. Deposits increased
$13,378,574 (7.66%) from December 31, 1998. Loans increased $2,045,824 (1.39%).
The allowance for loan losses at September 30, 1999, totaled $2,485,800,
representing 1.64% of total loans compared to December 31, 1998 totals of
$1,707,913 representing 1.15% of total loans. Cash and cash equivalents
increased $6,979,501 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 30.10% or $466,000 from $1,548,000 at December 31, 1998 to
$1,082,000 at September 30, 1999. The decrease is due to a reduction of loans
more than 90 days past due and still accruing interest of approximately $182,000
and the charge-off of a commercial loan of $218,000 during the first nine months
of 1999. There were no related party loans considered nonperforming at September
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 nine months ended September 30, 1999, the Company reported net
income of $1,449,346, or $1.82 per share, compared to $2,167,186, or $2.68 per
share for the same period in 1998. Net income for the period September 30, 1999,
decreased $717,840 or 33.12%, compared to the same period in 1998. The decrease
was the primary result of the increase in the provision for loan losses of
$946,893, compared to the same period in 1998.
Net interest income increased $52,597 (0.63%) in the first nine months of
1999 compared to the same period for 1998. Interest income for the first nine
months of 1999 was $13,285,406, representing an increase of $107,039 (0.81%)
over the same period in 1998. Interest expense for the first nine months of 1999
increased $54,442 (1.14%) compared to the same period in 1998. The increase in
interest income and interest expense during the first nine months of 1999
compared to the same period in 1998 is primarily attributable to the increase in
the average volume of both loans and deposits.
The provision for loan losses for the first nine months of 1999
increased $946,893 compared to the same period for 1998. The increase is
primarily attributable to one commercial relationship of approximately
$1,120,000 that has been downgraded to doubtful. A specific reserve of $400,000
has been assigned to this relationship. In addition, the finance company (a
wholly-owned subsidiary of the Bank) increased its provision for loan losses by
$200,000 during 1999 due to significant losses realized in its portfolio. Net
loan charge-offs for the six months ended September 30, 1999, were $363,539,
compared to $739,857, 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.
-9-
<PAGE>
Item 2.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS, CONTINUED
For the Nine Months in the Periods Ended
September 30, 1999 and 1998
Other operating income increased for the nine months ended September 30,
1999, by $9,362 or 0.55%, compared to the same period in 1998, primarily due to
two other real estate properties that were sold and gains recognized on those
sales during 1999.
Other operating expenses for the nine months of 1999 increased $320,679
(5.00%) compared the first nine months in 1998. The net increase is primarily
attributable to an increase in employee costs of approximately $279,000 due to a
combination of additional employees and salary increases of the existing
workforce, and an increase in depreciation expense of $134,000 related to Year
2000 purchases and capital improvements.
CAPITAL
The following tables present FNB Banking Company's regulatory capital position
at September 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 16.3%
Total Capital minimum requirement 8.0%
----
Excess 8.3%
====
Leverage Ratio
- --------------
Tier 1 Tangible Capital to adjusted total assets
("Leverage Ratio") 10.9%
Minimum leverage requirement 4.0%
----
Excess 6.9%
====
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<PAGE>
Item 2.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS, CONTINUED
For the Nine Months in the Periods Ended
September 30, 1999 and 1998
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. 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.
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.
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<PAGE>
Item 2.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS, CONTINUED
For the Nine Months in the Periods Ended
September 30, 1999 and 1998
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.
-12-
<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
---------------------------------------------------
None
Item 5. Other Information
-----------------
None
Item 6. Exhibits and Reports On Form 8-K
--------------------------------
(a) Exhibits
--------
Exhibit 27 - Financial Data Schedule (for SEC use only)
(b) Reports on Form 8-K
-------------------
There were no Reports on Form 8-K during this reporting
period.
-13-
<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:_____________________________________
C.A. Knowles, President and Treasurer
(Principal Executive Officer)
Date:___________________________________
By:_____________________________________
William K. Holmes
Assistant Treasurer
(Principal Accounting Officer)
Date:___________________________________
<TABLE> <S> <C>
<ARTICLE> 9
<CIK> 0000757262
<NAME> FNB BANKING COMPANY
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-START> JAN-01-1999
<PERIOD-END> SEP-30-1999
<CASH> 15,034,748
<INT-BEARING-DEPOSITS> 156,830,943
<FED-FUNDS-SOLD> 5,161,387
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 32,419,018
<INVESTMENTS-CARRYING> 0
<INVESTMENTS-MARKET> 0
<LOANS> 148,910,022
<ALLOWANCE> 2,485,800
<TOTAL-ASSETS> 213,218,806
<DEPOSITS> 187,922,975
<SHORT-TERM> 0
<LIABILITIES-OTHER> 444,366
<LONG-TERM> 1,761,410
0
0
<COMMON> 789,095
<OTHER-SE> 22,300,959
<TOTAL-LIABILITIES-AND-EQUITY> 213,216,806
<INTEREST-LOAN> 11,556,346
<INTEREST-INVEST> 1,402,656
<INTEREST-OTHER> 326,404
<INTEREST-TOTAL> 13,285,407
<INTEREST-DEPOSIT> 4,725,884
<INTEREST-EXPENSE> 4,830,884
<INTEREST-INCOME-NET> 8,454,522
<LOAN-LOSSES> 1,344,868
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 6,738,338
<INCOME-PRETAX> 2,081,909
<INCOME-PRE-EXTRAORDINARY> 2,081,909
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,449,346
<EPS-BASIC> 1.82
<EPS-DILUTED> 0
<YIELD-ACTUAL> 6.03
<LOANS-NON> 1,008,000
<LOANS-PAST> 74,000
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 1,707,913
<CHARGE-OFFS> 768,900
<RECOVERIES> 201,919
<ALLOWANCE-CLOSE> 2,485,800
<ALLOWANCE-DOMESTIC> 2,485,000
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
