<PAGE>
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................................................ March 31, 1996
Commission file number...................................................0-13653
THE PEOPLES BANCTRUST COMPANY, INC.
(Exact name of registrant as specified in its charter)
Alabama...............................................................63-0896239
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
310 Broad Street (Address of principal executive offices)
Selma, Alabama
36701
(334) 875-1000
(Registrant's telephone number, including area code)
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 such shorter time 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
----- -----
As of the close of business on March 31, 1996, 1,693,694 shares of
registrant's Common Stock, par value $.10 per share, were outstanding.
<PAGE>
THE PEOPLES BANCTRUST COMPANY, INC.
AND SUBSIDIARY
Notes to Consolidated Financial Statements (Unaudited)
Accounting Policies:
The accompanying unaudited consolidated financial statements of The Peoples
BancTrust Company, Inc. (the "Company") and its subsidiary, The Peoples Bank and
Trust Company, have been prepared in accordance with generally accepted
accounting principles for interim information and with the instructions to Form
10-Q and Article 10 of regulation S-X. Accordingly, they do not include all of
the information and footnotes required by generally accepted accounting
principles for complete financial statements. In the opinion of management, all
adjustments (consisting of normal recurring accruals) considered necessary for a
fair presentation have been included. All interim amounts are subject to year-
end audit, and the results of operations for the interim periods herein are not
necessarily indicative of the results that may be expected for the year ending
December 31, 1996. For further information refer to the consolidated financial
statements and footnotes thereto included in the Company's Annual Report on Form
10-K for the year ended December 31, 1995.
Accounting for Long-Lived Assets:
In March 1995, the Financial Standards Board issued Statement of Financial
Accounting Standards ("SFAS") 121, "Accounting for the Impairment of Long-Lived
Assets and for Long-Lived Assets to be Disposed of." SFAS 121 requires that
long-lived assets and certain identifiable intangibles to be held and used by
the entity be reviewed for impairment whenever events or changes in
circumstances indicate that the carrying amount of an asset may not be
recoverable. If the future undiscounted cash flows expected to result from the
use of the asset and its eventual disposition are less than the carrying amount
of the asset, an impairment loss is recognized. This statement also requires
that long-lived assets and certain intangibles to be disposed of be reported at
the lower of carrying amount or fair value less cost to sell. The Company
adopted SFAS No. 121 as of January 1, 1996. The adoption of SFAS No. 121 did
not have a material impact on the Company's financial statements.
The Financial Accounting Standards Board issued Statement of Financial
Accounting Standards No. 123, Accounting for Stock-Based Compensation, (SFAS NO.
123) in October 1995. This statement defines a fair value based method of
accounting for an employee stock option or similar equity instrument. However,
SFAS No. 123 allows an entity to continue to measure compensation costs for
those plans using the intrinsic value based method of accounting prescribed by
APB Opinion No. 25, Accounting for Stock Issued to Employees. Entities electing
to remain with the accounting in Opinion No. 25 must make proforma disclosures
of net income and earnings per share as if the fair value based method of
accounting defined in SFAS No. 123 had been applied.
<PAGE>
Under the fair value based method, compensation cost is measured at the grant
date based on the value of the award and is recognized over the service period,
which is usually the vesting period. Under the intrinsic value based method,
compensation cost is the excess, if any, of the quoted market price of the stock
at the grant date or other measurement date over the amount an employee must pay
to acquire the stock. Most fixed stock option plans have no intrinsic value at
grant date, and under Opinion 25, no compensation cost is recognized for them.
The Company adopted SFAS No. 123 as of January 1, 1996. In connection therewith,
the Company has elected to continue to measure compensation cost for its stock
option plan under the provisions in APB Opinion 25. The adoption of SFAS No. 123
did not have a material impact on the Company's financial statements.
<PAGE>
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
THE PEOPLES BANCTRUST COMPANY, INC. SELMA, ALABAMA
CONDENSED CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
In Thousands
3/31/96 12/31/95
(Unaudited)
<S> <C> <C>
ASSETS:
Cash and due from banks $ 14,699 $ 14,414
Federal funds sold and securities purchased 12,610 4,187
under agreement to sell -------- ---------
Total cash and cash equivalents 27,309 18,601
Securities available for sale 91,253 97,587
Loans, net of unearned income 191,337 191,132
Allowance for loan losses (1,947) (2,005)
-------- ---------
Net loans 189,390 189,127
Premises and equipment 5,882 5,962
Other assets 6,822 7,034
-------- ---------
Total assets $320,656 $ 318,311
======== =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Noninterest-bearing deposits $ 43,327 $ 43,757
Interest-bearing deposits 230,634 229,025
-------- ---------
Total deposits 273,961 272,782
Federal funds purchased and securities
sold under agreement to repurchase 5,174 5,019
Other borrowed funds 6,040 6,216
Other liabilities 3,670 2,780
-------- ---------
Total liabilities 288,845 286,797
Common stock 178 178
Additional paid-in capital 7,059 7,059
Treasury stock (1,287) (1,287)
Retained earnings 26,474 25,786
Net unrealized loss on securities available for sale (613) (222)
-------- ---------
Total stockholders' equity 31,811 31,514
-------- ---------
Total liabilities and stockholders' equity $320,656 $ 318,311
======== =========
</TABLE>
See Notes to the Unaudited Consolidated Financial Statements.
<PAGE>
THE PEOPLES BANCTRUST COMPANY, INC., SELMA, ALABAMA
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
<TABLE>
<CAPTION>
In thousands except share
and per share data
(Unaudited)
THREE MONTHS ENDED MARCH 31
1996 1995
<S> <C> <C>
Interest and fees on loans $ 4,761 $ 4,036
Interest and dividends on investment securities 1,394 1,424
Other interest income 98 63
---------- ----------
Total interest income 6,253 5,523
---------- ----------
Interest on deposits 2,669 2,525
Interest on borrowed funds 148 54
---------- ----------
Total interest expense 2,817 2,579
---------- ----------
Net interest income 3,436 2,944
Provision for loan losses 326 93
---------- ----------
Net interest income after
provision for loan losses 3,110 2,851
Net securities gains 15
Other income 1,103 715
Other expense 2,815 2,718
---------- ----------
Income before income taxes 1,413 848
Provision for income taxes 506 195
---------- ----------
Net income $ 907 $ 653
========== ==========
Weighted average number of shares outstanding 1,693,694 1,762,645
========== ==========
Net income per share $0.54 $0.37
========== ==========
Dividends per share $0.13 $0.12
========== ==========
</TABLE>
See Notes to the Unaudited Condensed Consolidated Financial Statements
<PAGE>
THE PEOPLES BANCTRUST COMPANY, INC. SELMA, ALABAMA
CONSOLIDATED STATEMENT OF CASH FLOWS
<TABLE>
<CAPTION>
In Thousands
------------
Three months ended March 31
1996 1995
-----------------------------------
(UNAUDITED)
<S> <C> <C>
Net cash provided (used) by operating activities $ 77 $ 2,269
Cash flows from investing activities:
Proceeds from sales of investment securities 64
Proceeds from maturities and calls of investment securities 1,000
Proceeds from sales of securities available for sale 2,341 391
Proceeds from maturities and calls of securities available for sale 13,333 2,928
Purchases of securities available for sale (9,275) (818)
Net increase in loans 1,153 (3,726)
Purchases of bank premises and equipment (182) (253)
Proceeds from sale of equipment 12
Proceeds from sale of other real estate
--------------- ------------
Net cash used in investing activities 7,370 (402)
Cash flows from financing activities:
Net increase in deposits 1,502 603
Net decrease in borrowed funds (21) (5,408)
Dividends paid (220) (209)
--------------- ---------
Net cash used by financing activities 1,261 (5,014)
--------------- ---------
Net increase in cash and cash equivalets 8,708 (3,147)
Cash and cash equivalents at beginning of period 18,601 23,182
----------- ------
Cash and cash equivalents at March 31 $27,309 $20,035
=========== ======
Supplemental disclosure of cash flow information:
Cash paid during the period for:
Interest $ 2,817 $ 2,239
Taxes (refunds) 0 (110)
- -----------------------------------------------------------------------------------------------------------------
</TABLE>
See Notes to the Unaudited Consolidated Financial Statements.
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS.
General:
The following analysis focuses on the financial condition of The Peoples
BancTrust Company, Inc. (the Company), and should be read in conjunction with
the consolidated financial statements included in this report.
Financial Condition:
Total consolidated assets of the Company and its subsidiary, The Peoples Bank
and Trust Company (the Bank), totaled $320,656,000 at March 31, 1996, an
increase of $2,345,000 from the December 31, 1995 total of $318,311,000.
Earning assets have also increased $2,352,000 during the first quarter of 1996
from $290,901,000 to $293,253,000.
Investments:
The Company's total securities portfolio decreased during the first quarter of
1996 from $97,587,000 at December 31, 1995 to $91,253,000. This decline was
primarily due to investment in Federal funds for liquidity and a rise in loan
demand.
At year end 1995 and at March 31, 1996, the entire securities portfolio was
classified as "available for sale" resulting in the portfolio being marked- to-
market. At December 31, 1995, the portfolio had a net unrealized loss of
$222,000 as compared to a net unrealized loss of $613,000 at March 31, 1996.
Interest rates have remained approximately the same during the first quarter of
1996.
Short Term Investments:
Short-term investments (primarily federal funds and securities purchased under
agreement to resell) increased $8,423,000. Management constantly monitors these
funds seeking alternative uses to enhance interest income.
Loans:
A small growth of $205,000 was recorded for loans, net of unearned from year-end
to first quarter end. Due to large-line payoffs, business loans showed a
decrease of $3,055,000 while installment loans grew only $66,000. The greatest
increase was recorded in real estate loans in the amount of $2,764,000. Credit
line loans increased (primarily from home equity lines of credit) nearly
$200,000 and overdrafts increased approximately $367,000.
Allowance for Loan Losses:
In making loans, the Company recognizes the fact that credit losses will be
experienced and that the risk of loss will vary with, among other things, the
type of loan being made, the credit of the security for the loan. The
allowance for loan losses is maintained at a level believed adequate by
management to absorb potential losses in the Company's portfolio.
Management's determination of the adequacy of the allowance is based, among
other things, on estimates of the historical loan loss experience, evaluation of
economic conditions in general and in various sectors of the Company's customer
base, and periodic reviews of loan portfolio quality by the Company's personnel,
and other relevant factors. General reserves will be provided for loans where
the ultimate collection is considered
<PAGE>
questionable by management after reviewing the current status of loans which are
contractually past due, structurally deficient or economically depreciating, and
considering the net realizable value of the security of the loan or guarantees,
if applicable. Management will continue to monitor the Company's asset quality
and will charge off loans against the allowance for loan losses when appropriate
or provide specific loss reserves when necessary. Because the allowance is based
on assumptions and subjective judgement, it is not necessarily indicative of the
actual charge-offs which may ultimately occur.
The Company's allowance for loan losses totaled $1,947,000 at March 31, 1996 as
compared to $2,005,000 at December 31, 1995. The resulting ratios of allowance
to total loans net of unearned interest were 1.02% and 1.05% for quarter end
1996 and year end 1995, respectively. The amount of loans determined by
management that require special attention due to potential weaknesses dropped
slightly during the first quarter from $6,700,000 to $6,667,000. Non-accruing
loans, expressed as a percentage of total loans net of unearned interest,
remained relatively stable at .83% at March 31, 1996 as compared to .79% at
December 31, 1995. At its current level, the allowance for loan losses exceeds
the regulatory minimum requirement and management believes that the current
allowance is adequate to absorb potential losses in the Company's loan
portfolio.
Deposits:
Total deposits of the Company increased $1,179,000 since December 31, 1995 to
$273,961,000 at quarter end. Total interest bearing accounts grew $1,609,000 in
the same time period, of that, savings and interest bearing demand accounts,
increased $1,739,000 and $1,052,000, respectively. Offsetting these increases
was the decline in total time deposits of $2,431,000 and in demand accounts a
drop of $373,000.
Stockholders' Equity:
Total stockholders' equity at March 31, 1996 was $31,811,000 compared to
$31,514,000 at year end. First quarter earnings of $907,000 less the change in
the unrealized loss on available for sale securities ($391,000) accounts for the
major difference in the quarter.
Risk-based capital regulations require all bank holding companies and banks to
achieve and maintain a minimum total capital to total risk-weighted assets ratio
of 8.00%, at least half of which must be in the form of Tier 1, or core capital
(consisting of stockholders' equity less goodwill). The following table
indicates the Company's Tier 1 capital ratio and total capital ratio at
March 31, 1996 were 15.57% and 16.17%, respectively. The Company maintained,
at March 31, 1996, a leverage ratio of Tier 1 capital to total assets of 9.52%
compared to the minimum regulatory requirement of 3.00% required of the
strongest companies and banks. In addition, the table indicates that the
ratios of the Company's subsidiary bank also well exceed the minimum
requirements of the regulation.
<PAGE>
RISK BASED CAPITAL RATIOS & LEVERAGE RATIOS AS OF MARCH 31, 1996
<TABLE>
<CAPTION>
RISK-BASED CAPITAL RATIOS
- -------------------------
The Company The Bank
----------- --------
<S> <C> <C>
Tier 1 Capital.................... $ 30,618 15.57% $ 31,959 16.30%
Tier 1 Capital - Minimum Required 7,867 4.00% 7,844 4.00%
-------- ------ -------- ------
Excess............................ $ 22,751 11.57% $ 24,115 12.30%
======== ====== ======== ======
Total Capital..................... $ 31,799 16.17% $ 33,140 16.90%
Total Capital - Minimum Required 15,735 8.00% 15,687 8.00%
-------- ------ -------- ------
Excess............................ $ 16,064 8.17% $ 17,453 8.90%
======== ====== ======== ======
-------- ------ -------- ------
<CAPTION>
LEVERAGE RATIOS
The Company The Bank
----------- --------
<S> <C> <C>
Total Tier 1 Capital.............. $ 30,618 9.52% $ 31,959 9.97%
Minimum Leverage Requirement...... 9,645 3.00% 9,616 3.00%
-------- ------ -------- ------
Excess............................ $ 20,973 6.52% $ 22,343 6.97%
======== ====== ======== ======
-------- ------ -------- ------
Average Total Assets,
net of all goodwill............... $321,488 $320,518
======== ========
-------- --------
</TABLE>
<PAGE>
Results of Operations:
The Company's profitability, like that of many financial institutions, is
dependent to a large extent upon its net interest income, which is the
difference between its interest income on interest-earning assets, such as loans
and investments, and its interest expense on interest-bearing liabilities, such
as deposits and borrowings. Interest sensitivity is one measure of the
vulnerability of earnings to changes in the general level of interest rates.
Whenever interest-earning assets reprice to market interest rates at a different
pace than interest-bearing liabilities, interest income performance will be
affected favorably or unfavorably during periods of changes in general interest
rates. Management is unable to predict future changes in market rates and their
impact on the Company's profitability. Management believes, however, that the
Company's current rate sensitivity position is well matched, indicating the
assumption of minimal interest rate risk.
Interest income for the first quarter of 1996 was $6,253,000 compared to
$5,523,000 for the same quarter of 1995. Average earning assets grew from
$270,501,000 for the first quarter of 1995 to $293,253,000 for the first quarter
of 1996.
The average volume of the Company's securities portfolio decreased from
$101,840,000 at March 31, 1995 to $97,902,000 at March 31, 1996, resulting in
a decline of interest income of approximately $30,000. Funds from maturing
investments were reinvested primarily in higher yielding loans.
Interest income from business loans totaled $1,407,000 at March 31, 1996
compared to $1,152,000 at March 31, 1995. This increase was mainly due to an
increase in volume during the quarter although the Company experienced large
payoffs at quarter end.
Personal loan interest income increased from $1,575,000 at March 31, 1995 to
$1,799,000 for the same quarter in 1996 due to the growth in the average volume
of personal loans of $6,111,000 (primarily from automobile financing).
An increase in the average volume of real estate loans from $50,966,000 at
March 31, 1995 to $59,264,000 at March 31, 1996, coupled with a slight increase
in yields from 9.24% to 9.41% during the same period, caused interest income on
real estate loans to grow from $1,177,000 to $1,394,000.
Interest expense on deposits for the first quarter of 1996 was $2,669,000
compared to $2,525,000 for the same period in 1995. The average volume of
interest bearing deposits grew $8,714,000 while the cost of funds remained
relatively the same, only changing .07%.
The resulting net interest income for the quarter ended March 31, 1996 was
$3,436,000 compared to $2,944,000 for the same quarter in 1995, a 16.68%
increase.
The provision for loan losses replaces reductions to the allowance for loan
losses caused by actual charge-offs and to establish adequate reserves for
growth in the loan portfolio. The Company's provision for loan losses for the
first quarter of 1996 was $326,000 compared to $93,000 for the same quarter in
1995.
<PAGE>
Non-interest income for the first three months of 1996 totaled $1,118,000 as
compared to $715,000 in 1995. Quarterly income from deposits service charges
increased $103,000 from $528,000 to $631,000. Brokerage fee income also
increased $44,000 during the first quarter 1996 as compared to first quarter
1995. In 1996, gains of $15,000 on the sale of securities was recognized while
no gains or losses occurred in the same period of 1995.
Non-interest expenses increased $93,000 from $2,718,000 for the first quarter of
1995 to $2,815,000 for 1996. Salaries and employee benefits increased $8,000
over 1995 results, while premises and fixed asset expense grew $60,000, mainly
due to renovation of the county branches. Declines in advertising expense of
$29,000 and FDIC premiums of $102,000 were offset by increases in computer
expense (user fees and maintenance, $18,000), outside services (auditing,
accounting, and legal fees, $34,000), and $17,000 in education and seminar
expense.
Income before taxes for the quarter ended March 31, 1996 was $1,413,000 compared
to $848,000 for the first quarter in 1995. The income tax provision increased
between the quarters from $195,000 in 1995 to $506,000 in 1996. The resulting
first quarter net income for 1995 was $653,000 compared $907,000 for the same
period in 1996. Annualized earnings per share for first quarter 1995 was
$1.50, compared to $2.14 for the first quarter 1996.
<PAGE>
PART II - OTHER INFORMATION
Item 1. Legal Proceedings.
From time to time, the Company and the Bank are parties to various legal
proceedings incident to their businesses. Management is not aware of any legal
proceedings to which the Company or the Bank is a party, or to which any of
their property is subject, which may result in a material loss, except as
follows:
Lelon Roy Godwin and Mark N. Godwin v. Peoples Bank and Trust Co., et al,
------------------------------------------------------------------------
Circuit Court of Autauga County, Alabama, Case No. CV-95-214-D. This case was
filed on October 17, 1995. The complaint is based on alleged violations of the
Alabama Mini-Code and other provisions of Alabama law relating to collateral
protection insurance placed on the Plaintiff's truck. The complaint includes
counts for fraud, breach of fiduciary duty, as well as other counts. A jury
trial is demanded. The complaint seeks compensatory and punitive damages in an
unspecified amount. The complaint also seeks class action status for all
individuals against whom charges have been made for the purpose of collateral
protection insurance. The Bank denies the allegations of the complaint and
denies that class action certification is appropriate.
William L. Ammons, d/b/a Ammons Construction Company v. Peoples Bank &
----------------------------------------------------------------------
Trust Co., Circuit Court of Dallas County, Alabama, Case No. CV-95-295. This
- ---------
case was filed on October 18, 1995. The Plaintiff, a contractor, was
constructing a house for a customer of the Bank who had borrowed construction
monies for that purpose. The Bank customer sued the contractor, alleging that
he failed to complete the transaction. The contractor now brings this action
contending that the Bank owes funds for the construction to him as a third party
beneficiary. He further alleges misrepresentation by the Bank and seeks
unspecified compensatory and punitive damages. A jury trial is demanded. The
Bank denies the allegations of the complaint. This case has been placed on
administrative hold by the Court, pending the outcome of the suit between the
plaintiff contractor and the Bank's customer.
Walter Lee McMeans v. The Peoples Bank & Trust Company, et al, Circuit
-------------------------------------------------------------
Court of Lowndes County, Alabama, Case No. CV-96-26. This case was field on
January 9, 1996. The complaint alleges that the Bank, through its loan
officers, made representations to plaintiff concerning credit life insurance on
or about November 16, 1990, and subsequently placed collateral protection
insurance on the plaintiff's property at unconscionable costs. The Complaint
avers that the actions constitute fraud of various types, and negligence and
wanton supervision. Unspecified compensatory and punitive damages are claimed
and a jury trial is
<PAGE>
demanded. The Bank has not had an opportunity to fully evaluate the nature of
the claims on which this Complaint is based, but the loan officers deny that any
misrepresentations were made to the plaintiff.
Edward Thomas v. The Peoples Bank and Trust Company, et al, Circuit Court
----------------------------------------------------------
of Mobile County, Alabama, Case No. CV-96-000193. This case was filed on
January 16, 1996. The complaint was amended on March 9, 1996. The plaintiff
alleges various causes of action against the codefendants with respect to the
application and breach of contract. The complaint claims various injuries and
damages in an unspecified amount. As to the Bank, the complaint alleges that
the Bank negligently or wantonly failed to honor a check for a life insurance
premium when it was presented for payment. The Bank denies that it wrongfully
returned the check or is otherwise liable to the plaintiff in any manner.
The Peoples Bank and Trust Company v. Stephen Limbaugh and Lisa C. Miller,
-------------------------------------------------------------------------
Circuit Court of Autauga County, Alabama, Case No. CV-96-071-B. This suit was
filed to collect an indebtedness on a repossessed automobile. The Defendants
have filed a Counterclaim alleging that the vehicle was wrongfully repossessed,
and claiming unspecified compensatory and punitive damages. The Counterclaim
was initially filed in the District Court, having a limited jurisdiction. It
was amended March 12, 1996, to claim damages in the unspecified amount and
transferring the case to the Circuit Court, which does not have the damage
limitations of the District Court. The facts of the case are being
investigated, and it is too early to determine the Bank's position.
Item 6. Exhibits and Reports on Form 8-K.
(a) Exhibits
Exhibit 27 - Financial Data Schedule
(b) No reports on Form 8-K were filed during the quarter for which this
report is filed.
<PAGE>
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.
The Peoples BancTrust Company, Inc.
(Registrant)
/s/ Richard P. Morthland
__________________________________
Richard P. Morthland, President
/s/ Virginia L. Sellers
__________________________________
Virginia L. Sellers, Treasurer
14
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 9
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> MAR-31-1996
<CASH> 14,699
<INT-BEARING-DEPOSITS> 0
<FED-FUNDS-SOLD> 12,610
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 91,253
<INVESTMENTS-CARRYING> 0
<INVESTMENTS-MARKET> 0
<LOANS> 191,337
<ALLOWANCE> 1,947
<TOTAL-ASSETS> 320,656
<DEPOSITS> 273,961
<SHORT-TERM> 10,814
<LIABILITIES-OTHER> 2,974
<LONG-TERM> 400
0
0
<COMMON> 178
<OTHER-SE> 31,811
<TOTAL-LIABILITIES-AND-EQUITY> 320,656
<INTEREST-LOAN> 4,761
<INTEREST-INVEST> 1,394
<INTEREST-OTHER> 97
<INTEREST-TOTAL> 6,252
<INTEREST-DEPOSIT> 2,669
<INTEREST-EXPENSE> 2,817
<INTEREST-INCOME-NET> 3,435
<LOAN-LOSSES> 326
<SECURITIES-GAINS> 15
<EXPENSE-OTHER> 2,553
<INCOME-PRETAX> 1,506
<INCOME-PRE-EXTRAORDINARY> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,099
<EPS-PRIMARY> 2.14
<EPS-DILUTED> 2.14
<YIELD-ACTUAL> 0
<LOANS-NON> 1,602
<LOANS-PAST> 0
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 6,669
<ALLOWANCE-OPEN> 2,005
<CHARGE-OFFS> 548
<RECOVERIES> 164
<ALLOWANCE-CLOSE> 326
<ALLOWANCE-DOMESTIC> 1,947
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
