FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the Quarterly Period Ended: Commission File No. 2-96573
September 30, 1998
FIRST NATIONAL LINCOLN CORPORATION
(Exact name of registrant as specified in its charter)
MAINE 01-0404322
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No)
MAIN STREET, DAMARISCOTTA, MAINE 04543
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (207) 563 - 3195
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 twelve 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 __
Indicate the number of shares outstanding of each of the issuer's classes
of common stock, as of the latest practicable date.
Class Outstanding at September 30, 1998
Common Stock, Par One Cent 2,476,250
<PAGE>
FIRST NATIONAL LINCOLN CORPORATION
INDEX
PART 1 Financial Information
Page No.
Item 1: Financial Statements
Consolidated Balance Sheets - 1 - 2
September 30, 1998, September 30, 1997, and December 31, 1997.
Consolidated Statements of Income - 3 - 4
Nine months ended September 30, 1998 and September 30, 1997.
Consolidated Statements of Income - 5 - 6
Quarter ended September 30, 1998 and September 30, 1997.
Consolidated Statements of Cash Flows - 7 - 8
Nine months ended September 30, 1998 and September 30, 1997.
Footnotes to Financial Statements - 9
Nine months ended September 30, 1998 and September 30, 1997.
Item 2: Management's discussion and analysis of 10 - 15
financial condition and results of operations.
PART II Other Information
Item 1: Legal Proceedings 16
Item 2: Changes in Securities 17
Item 3: Defaults Upon Senior Securities 18
Item 4: Submission of Matters to a Vote of Security Holders 19
Item 5: Other Information 20
Item 6: Exhibits and reports on Form 8-K. 21
Signatures 22
<PAGE>
FIRST NATIONAL LINCOLN CORPORATION AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
9/30/98 9/30/97 12/31/97
(000 OMITTED) (Unaudited) (Unaudited) (Unaudited)
Assets
Cash and due from banks $10,091 $5,476 $5,683
Interest bearing deposits in other banks 0 1,300 0
Investments:
Available for sale 13,876 16,078 16,463
Held to maturity (market values $47,145
at 9/30/98, $54,835 at 9/30/97 and
$52,610 at 12/31/97) 46,722 54,692 52,282
Loans held for sale (market value $100
at 12/31/97) 0 0 100
Loans 207,231 173,130 181,510
Less allowance for loan losses 1,792 1,818 1,800
Net loans 205,439 171,312 179,710
Accrued interest receivable 1,898 1,815 1,961
Bank premises and equipment 4,869 4,062 4,871
Other real estate owned 339 395 184
Other assets 6,071 1,923 5,025
Total Assets $289,305 $257,053 $266,279
Page1
<PAGE>
BALANCE SHEETS CONT.
9/30/98 9/30/97 12/31/97
(Unaudited) (Unaudited) (Unaudited)
Liabilities & Stockholders' Equity
Demand deposits $17,959 13,856 $14,109
NOW deposits 31,635 28,352 29,213
Money market deposits 7,714 4,213 6,238
Savings deposits 38,157 35,221 34,104
Certificates of deposit 70,429 64,453 68,970
Certificates $100M and over 30,480 15,260 17,246
Total deposits $196,374 161,715 $169,880
Borrowed funds 62,996 68,489 69,037
Other liabilities 1,632 1,716 1,477
Total Liabilities 261,002 231,920 240,394
Shareholders' Equity:
Common stock 25 25 25
Additional paid-in capital 4,686 4,584 4,595
Retained earnings 23,604 20,485 21,172
Net unrealized gains (losses) on available-
for-sale securities 99 58 93
Treasury stock (111) - 0
Total Stockholders' Equity 28,303 25,133 25,885
Total Liabilities & Stockholders'
Equity $289,305 257,053 $266,279
Page 2
<PAGE>
FIRST NATIONAL LINCOLN CORPORATION AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME
AND NON-OWNER CHANGES IN EQUITY
For the nine months ended September 30,
1998 1997
(000 OMITTED) (Unaudited) (Unaudited)
Interest Income:
Interest and fees on loans $12,858 11,099
Interest on deposits with other banks 24 34
Interest and dividends on investments 3,097 3,520
Total interest income 15,979 14,653
Interest expense:
Interest on deposits 5,012 4,288
Interest on borrowed funds 2,856 2,672
Total interest expense 7,868 6,960
Net interest income 8,111 7,693
Provision for loan losses 275 20
Net interest income after provision
for loan losses 7,836 7,673
Other operating income:
Fiduciary income 301 248
Service charges on deposit accounts 464 414
Net securities gains (losses) (21) 0
Other operating income 899 478
Total other operating income 1,643 1,140
Other operating expenses:
Salaries and employee benefits 2,774 2,434
Occupancy expense 329 253
Furniture and equipment expense 436 467
Other 1,624 1,388
Total other operating expenses 5,163 4,542
Income before income taxes 4,316 4,271
Applicable income taxes 1,293 1,349
NET INCOME $3,023 $2,922
Page 3
<PAGE>
STATEMENTS OF INCOME CONT.
1998 1997
(Unaudited) (Unaudited)
Non-owner changes in equity, net of tax:
Unrealized gains (losses)
arising during period 6 44
Less: reclassification adjustment
for accumulated gains (losses)
included in net-income (14) 0
Total non-owner changes in equity,
net of tax (8) 44
INCOME AND NON-OWNER CHANGES IN EQUITY $3,015 $2,966
Earnings per common share:
Basic earnings per share $1.22 $1.19
Diluted earnings per share $1.17 $1.16
Cash dividends declared per share $0.24 $0.17
Weighted average number of shares
outstanding 2,478,642 2,463,902
Page 4
<PAGE>
CONSOLIDATED STATEMENTS OF INCOME
AND NON-OWNER CHANGES IN EQUITY
For the quarter ended September 30,
1998 1997
(000 OMITTED) (Unaudited) (Unaudited)
Interest Income:
Interest and fees on loans $4,486 3,872
Interest on deposits with other banks 14 10
Interest and dividends on investments 952 1,229
Total interest income 5,452 5,111
Interest expense:
Interest on deposits 1,821 1,470
Interest on borrowed funds 856 961
Total interest expense 2,677 2,431
Net interest income 2,775 2,680
Provision for loan losses 170 20
Net interest income after provision
for loan losses 2,605 2,660
Other operating income:
Fiduciary income 113 78
Service charges on deposit accounts 163 139
Net securities gains (losses) 4 0
Other operating income 483 232
Total other operating income 763 449
Other operating expenses:
Salaries and employee benefits 975 833
Occupancy expense 115 84
Furniture and equipment expense 125 175
Other 685 528
Total other operating expenses 1,900 1,620
Income before income taxes 1,468 1,489
Applicable income taxes 437 473
NET INCOME $1,031 $1,016
Page 5
<PAGE>
STATEMENTS OF INCOME CONT.
1998 1997
(Unaudited) (Unaudited)
Non-owner changes in equity, net of tax:
Unrealized gains (losses)
arising during period (12) 37
Less: reclassification adjustment
for accumulated gains (losses)
included in net-income 3 0
Total non-owner changes in equity,
net of tax (9) 37
INCOME AND NON-OWNER CHANGES IN EQUITY $1,022 $1,053
Earnings per common share
Basic earnings per share $0.42 $0.41
Diluted earnings per share $0.40 $0.40
Cash dividends declared per share $0.08 $0.06
Weighted average number of shares
outstanding 2,477,530 2,467,603
Page 6
<PAGE>
FIRST NATIONAL LINCOLN CORPORATION AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the nine months ended September 30,
1998 1997
(000 OMITTED) (Unaudited) (Unaudited)
Cash flows from operating activities:
Net income $3,023 2,922
Adjustments to reconcile net earnings to
net cash provided by operating activities:
Depreciation 407 437
Provision for loan losses 275 20
Loans originated for resale (11,719) (1,657)
Proceeds from sales and transfers of loans 11,819 1,959
Net (gain) loss on sale of investments 21 0
Provision for losses on other real estate owned 0 0
Losses related to other real estate owned 0 26
Net change in other assets (983) (906)
Net change in other liabilities 145 350
Net amortization of premium on investments 235 85
Net cash provided by operating activities 3,223 3,236
Cash flows from investing activities:
Proceeds from sales of investments 5,474 0
Proceeds from maturities of investments 25,134 11,975
Maturities of interest-bearing deposits 0 0
Purchase of interest-bearing deposits 0 (325)
Proceeds from sales of other real estate 0 444
Additional investment in other real estate owned 0 (1)
Purchase of investments (22,701) (22,199)
Net decrease (increase) in loans (26,159) (16,523)
Capital expenditures (405) (123)
Net cash used in investing activities (18,657) (26,752)
Cash flows from financing activities:
Net increase (decrease) in demand deposits,
savings, money market and club accounts 11,801 (495)
Net increase (decrease) in certificates of deposit 14,693 6,536
Net increase (decrease) in other borrowings (6,041) 17,341
Payment to repurchase common stock (191) 48
Proceeds from sale of Treasury stock 76 (48)
Net proceeds from stock issuance 95 98
Dividends paid (591) (511)
Net cash provided by financing activities 19,842 22,969
Page 7
<PAGE>
STATEMENTS OF CASH FLOWS CONT.
1998 1997
(Unaudited) (Unaudited)
Net increase (decrease) in cash and
cash equivalents 4.408 (547)
Cash and cash equivalents at beginning
of period 5,683 6,023
Cash and cash equivalents at end of
period $10,091 $5,476
Interest paid $7,868 $6,852
Income taxes paid 1,341 1,307
Non-cash transactions:
Loans transferred to other real estate
owned (net) 155 50
Net change in unrealized gain (loss) on
available for sale securities 16 44
Page 8
<PAGE>
FOOTNOTES TO FINANCIAL STATEMENTS
1. The quarterly financial statements in the opinion of Management fairly
represent all adjustments made to reflect the current financial condition of
the Company for this interim period just ended. All such adjustments were of a
normal recurring nature.
Page 9
<PAGE>
Item 2 - MANAGEMENT'S DISCUSSION OF FINANCIAL CONDITION & RESULTS OF OPERATIONS
EARNINGS SUMMARY
Net income for the nine months ended September 30, 1998 was $3,023,000, an
increase of 3.5% over 1997's net income of $2,922,000. Net income for the
quarter ended September 30, 1998 was $1,031,000. This is a 1.5% increase over
1997's net income of $1,016,000.
Earnings growth for the first nine months of 1998 has been at a lower rate
than in the past three years due to several factors. The Bank's operating
expenses have increased as a result of opening two new branches in Rockport,
Maine and Camden, Maine. At the same time, the Bank's operating margins have
been compressed as a result of increased competition and the current interest
rate environment with a yield curve that has been extremely flat or inverted.
It is Management's opinion that neither of these factors will have a
significant negative impact on the long-term operating results of the Company.
NET INTEREST INCOME
Net interest income for the nine months ended September 30, 1998 was
$8,111,000, a 5.4% increase over 1997's net interest income of $7,693,000.
Total interest income of $15,979,000 is a 9.0% increase over 1997's total
interest income of $14,653,000. Total interest expense of $7,868,000 is a
13.0% increase over 1997's total interest expense of $6,960,000.
Net interest income for the quarter ended September 30, 1998 was
$2,775,000. This is a 3.5% increase over 1997's net interest income of
$2,680,000. Total interest income was $5,452,000, a 6.7% increase over 1997's
total interest income of $5,111,000. Total interest expense of $2,677,000 is a
10.1% increase over 1997's total interest expense of $2,431,000.
PROVISION FOR LOAN LOSSES
A $275,000 provision to the allowance for loan losses was made during the
first nine months of 1998. The allowance for loan losses is deemed adequate as
calculated in accordance with Banking Circular #201 and with respect to SFAS
114/118. Loans considered to be impaired according to SFAS 114/118 totalled
$308,000 at September 30, 1998. The portion of the allowance for loan losses
allocated to impaired loans at September 30, 1998 was $142,000.
NON-INTEREST INCOME
Non-interest income of $1,643,000 for the nine months ended September 30,
1998. This is an increase of 44.1% from 1997's non-interest income of
$1,140,000, due to strong mortgage origination and merchant credit card income,
as well as a non-recurring gain of $125,000. Non-interest income for the
quarter ended September 30, 1998 was $763,000, a 69.9% increase over the same
period a year ago.
NON-INTEREST EXPENSE
Non-interest expense of $5,163,000 for the nine months ended September 30,
1998 is an increase of 13.7% from 1997's non-interest expense of $4,542,000.
Non-interest expense for the quarter ended September 30, 1998 was $1,900,000,
an 17.3% increase over the same period a year ago.
Page 10
<PAGE>
MANAGEMENT'S DISCUSSION CONT.
INCOME TAXES
Income taxes on operating earnings decreased to $1,293,000 for the first
nine months of 1998 from $1,349,000 for the same period a year ago. The level
of income taxes declined slightly as a result of the Company's increased
holdings of tax-exempt securities.
DEPOSITS AND BORROWED FUNDS
Deposits as of September 30, 1998 increased by 21.4% or $34,659,000 from
September 30, 1997. Demand deposits increased by 29.6% or $4,103,000, NOW
deposits increased by 11.6% or $3,283,000, savings deposits increased by 8.3%
or $2,936,000, money market deposits increased by 83.1% or $3,501,000 and
certificates of deposit increased by 26.0% or $20,836,000. This is the most
substantial deposit growth that the Bank has seen in several years and is a
direct result of the opening of two new branches as well as the acquisition of
approximately $9 million in CDs in the national wholesale market.
Deposits were supplemented by borrowings from the Federal Home Loan Bank
and repurchase agreements. Due to strong deposit growth, however, total
borrowed funds decreased by 8.0% or $5,493,000 from the same period a year ago.
STOCKHOLDERS' INVESTMENT AND CAPITAL RESOURCES
Stockholders' investment as of September 30, 1998 was $28,303,000 compared
to $25,133,000 for the same period in 1997. The reason for this increase was
the strong earnings performance in the year 1997 and the first nine months of
1998.
During 1997, the Company increased its dividend each quarter to end the
year at a quarterly dividend rate of 6 cents per share. In addition, a special
cash dividend of 6 cents per share was declared in the fourth quarter of 1997.
In 1998, dividends have been increased by one cent per share each quarter,
ending with 9 cents per share in the third quarter. (Dividend information for
prior periods has been restated to reflect the 300% stock dividend issued on
December 1, 1997.)
Leverage capital ratios for the Company were 9.78% and 9.78%,
respectively, at September 30, 1998 and September 30, 1997. The Bank had a
tier one risk-based capital ratio of 14.47% and tier two risk-based capital
ratio of 15.44% at September 30, 1998, compared to 15.62% and 16.80%,
respectively, at September 30, 1997. These were comfortably above the
standards to be rated "well-capitalized" by the regulatory authorities.
LIQUIDITY MANAGEMENT
As of September 30, 1998 the Bank had primary sources of liquidity of
$57,110,000, or 19.8% of its assets. It is Management's opinion that this is
adequate. In its Asset/Liability policy, the Bank has adopted guidelines for
liquidity.
We are not aware of any current recommendations by the regulatory
authorities which, if they were to be implemented, would have a material effect
on the Corporation's liquidity, capital resources or results of operations.
Page 11
<PAGE>
MANAGEMENT'S DISCUSSION CONT.
LOAN POLICIES
Real estate values:
A. Residential properties We loan up to 80% of the appraised value of
properties without mortgage insurance and up to 95% of the appraised value of
properties with mortgage insurance. No further appraisals are done as long as
the payment history remains satisfactory. If a loan becomes delinquent, a
review might be done of the loan. When a loan becomes 90 or more days past due,
an in-depth review is made of the loan and a determination made as to whether
or not a reappraisal is required.
B. Land only properties We do not have many of these but we do loan up to 65%
of the appraised value of the property. They are handled the same way as above
from booking date on.
C. Commercial properties We loan up to 75% of the appraised value and, once
the loan is closed, the decision to re-appraise a property is subjective and
depends on a variety of factors, such as: the payment status of the loan, the
risk rating of the loan, the amount of time that has passed since the last
appraisal, changes in the real estate market, availability of financing,
inventory of competing properties, and changes in condition of the property
i.e. zoning changes, environmental contamination, etc. A certified or licensed
appraiser is used for all appraisals.
At September 30, 1998 and 1997, loans on a non-accrual status totaled
$721,000 and $537,000, respectively. In addition to loans on a non-accrual
status at September 30, 1998 and 1997, loans past due greater than 90 days
totaled $370,000 and $674,000 respectively. The Company continues to accrue
interest on these loans because it believes collection of the interest is
reasonably assured.
INVESTMENTS
As of September 30, 1998 stockholders' equity was increased by $99,000 due to a
net unrealized gain in the available-for-sale portfolio.
OFF-BALANCE SHEET FINANCIAL INSTRUMENTS
No material off-balance sheet risk exists that requires a separate
liability presentation.
SALE OF LOANS
No recourse obligations have been incurred in connection with the sale of
loans.
Page 12
<PAGE>
MANAGEMENT'S DISCUSSION CONT.
RISK ELEMENTS
Any loans classified for regulatory purposes as loss, doubtful,
substandard, or special mention that have not been disclosed under Item III of
Industry Guide 3 do not represent or result from trends or uncertainties which
Management reasonably expects will materially impact future operating results,
liquidity or capital resources.
There are no known potential problem loans which are not now disclosed
pursuant to Item III. C. 1. of Industry Guide 3. Item III. C. 2. is not
applicable.
REGULATORY MATTERS
Procedures for monitoring Bank Loan Administration:
A. Loan reviews are done on a regular basis.
B. An action plan is prepared quarterly on all classified commercial loans
greater than $100,000, and semi-annually on all criticized loans greater than
$100,000.
C. Delinquent loans are reviewed weekly by the Bank's Collections Officer and
Senior Loan Officer.
D. A tickler system is utilized to insure timely receipt of current information
(such as financial statements, appraisals and/or credit memos to the credit
file).
Note: Most of the above applies only to commercial loans, but retail loans are
reviewed periodically, usually around a delinquency.
Procedures for monitoring Bank Other Real Estate Owned:
The O.R.E.O. portfolio is handled by the Collections Officer, with backup
by the Senior Loan Officer. Most properties are listed with real estate
brokers for sale. All properties are appraised periodically for market value,
and provision is made to the allowance for O.R.E.O. losses if the estimated
market value after selling costs is lower than the carrying value of the
property.
ACCOUNTING PRONOUNCEMENTS
SFAS No. 130, "Reporting Comprehensive Income", was adopted on January 1,
1998. This standard requires that financial statements report comprehensive
income in addition to net income. Comprehensive income is all changes in
equity except investments by owners and distributions by owners. For the
Company, this includes unrealized appreciation or depreciation on securities
available for sale.
Page 13
<PAGE>
MANAGEMENT'S DISCUSSION CONT.
YEAR 2000 READINESS
With the year 2000 approaching, all businesses and governments are facing the
challenge of assessing and preparing their computer systems to handle dates
beyond 1999. First National Lincoln Corporation and its subsidiary, The First
National Bank of Damariscotta, are taking steps to address the many issues
related to the transition to the next century. The Bank's actions with regard
to Year 2000 compliance are reviewed by the Board of Directors, its internal
audit department, and its Federal Regulators. These include the following:
* The Bank has formulated a Year 2000 Plan to direct and coordinate
activities related to Year 2000 preparedness. All systems and business
relationships have been assessed to determine the scope of the project and
target dates have been set for any necessary systems changes. A test plan is
also in place to test all critical systems.
* A Year 2000 Task Force, overseen by the Board of Directors, has been
created and includes top management and staff from each division. It has been
working since the Summer of 1997 towards full Year 2000 compliance.
* A new core banking system has been purchased and became operational in
the third quarter of 1998. The system has been certified by the vendor as Year
2000 compliant and offers many features which will enhance customer service.
* The Bank is seeking to verify that all vendors, suppliers and other
business partners will be ready for Year 2000, and has created a team to work
with bank customers to assess their Year 2000 awareness and readiness.
The estimated cost to address Year 2000 issues is approximately $1
million. This includes $400,000 for the purchase of hardware and software for
the new core banking system, $250,000 for new PCs and networking hardware,
$50,000 for new telephone equipment, and a human-resources allocation of
$300,000. Most of these expenditures have already been incurred and will be
amortized over a three-to-five year period.
The purchase of new hardware and PCs, although required for operation of
the new core banking system, is part of the Bank's planned upgrade of
computers. The phone system is a more modern system that is being installed
irrespective of Year 2000 issues. Of the $300,000 human resource allocation, it
is estimated that only $25,000 will be an incremental expense to cover summer
college students, overtime for existing personnel, and outside support. The
remaining $275,000 is an allocation of existing human resources to effectively
implement and bring to a successful conclusion the Year 2000 Plan
It is Management's opinion that the Company's major Year 2000 risks are
primarily related to problems experienced by key counterparties which are
beyond the Company's control. The two most significant counterparties are U.S.
Government Agencies: the Federal Reserve Bank and the Federal Home Loan Bank.
The Company has begun and will continue to closely monitor the Year 2000
preparation and readiness of both agencies.
The Company has developed contingency plans with for all mission critical
systems. These plans include identification of alternative resources and/or
vendors as well as specific trigger dates for action and implementation.
Page 14
<PAGE>
MANAGEMENT'S DISCUSSION CONT.
FORWARD-LOOKING STATEMENTS
Certain disclosures in Management's Discussion and Analysis of Financial
Condition and Results of Operations contain certain forward-looking statements
(as defined in the Private Securities Litigation Reform Act of 1995). In
preparing these disclosures, Management must make assumptions, including, but
not limited to, the level of future interest rates, prepayments on loans and
investment securities, required levels of capital, needs for liquidity, and the
adequacy of the allowance for loan losses. These forward-looking statements may
be subject to significant known and unknown risks uncertainties, and other
factors, including, but not limited to, those matters referred to in the
preceding sentence.
Although First National Lincoln Corporation believes that the expectations
reflected in such forward-looking statements are reasonable, actual results may
differ materially from the results discussed in these forward-looking
statements. Readers are cautioned not to place undue reliance on these forward
looking statements, which speak only as of the date hereof. The Company
undertakes no obligation to republish revised forward-looking statements to
reflect events or circumstances after the date hereof or to reflect the
occurrence of unanticipated events. Readers are also urged to carefully review
and consider the various disclosures made by the Company which attempt to
advise interested parties of the facts which affect the Company's business.
Page 15
<PAGE>
PART II
ITEM 1. LEGAL PROCEEDINGS
The Company was not involved in any legal proceedings requiring disclosure
under Item 103 of Regulation S-K during the reporting period.
Page 16
<PAGE>
ITEM 2. CHANGES IN SECURITIES
None
Page 17
<PAGE>
ITEM 3. DEFAULT UPON SENIOR SECURITIES
None.
Page 18
<PAGE>
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
None.
Page 19
<PAGE>
ITEM 5: Other Information
In the third quarter of 1998, the company filed a Form S-8 with the Securities
Exchange Commission to register shares for the Company's Employee Stock
Purchase Plan.
Page 20
<PAGE>
ITEM 6: Exhibits, Financial Statement Schedules, and reports on Form 8-K
A. EXHIBITS
EXHIBIT 27. Financial Data Schedule.
B. REPORTS ON FORM 8-K
During the registrant's first nine months ended September 30, 1998 the
registrant was not required to and did not file any reports on Form 8-K.
Page 21
<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.
FIRST NATIONAL LINCOLN CORPORATION
November 12, 1998 Daniel R. Daigneault
Date Daniel R. Daigneault
President and CEO
November 12, 1998 F. Stephen Ward
Date F. Stephen Ward
Treasurer
Page 22
<PAGE>
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<ARTICLE> 9
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> SEP-30-1998
<CASH> 10091
<INT-BEARING-DEPOSITS> 0
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<TOTAL-ASSETS> 289305
<DEPOSITS> 196374
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<LIABILITIES-OTHER> 1632
<LONG-TERM> 1070
<COMMON> 25
0
0
<OTHER-SE> 28278
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<EXPENSE-OTHER> 5163
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<NET-INCOME> 3023
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<EPS-DILUTED> 1.17
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<LOANS-NON> 721
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