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, 1998. Commission file #0-15423
SOUTH ALABAMA BANCORPORATION,INC.
(Exact name of registrant as specified in its charter)
Alabama 63-0909434
(State or other jurisdiction of (I.R.S. employer
incorporation or organization) Identification Number)
100 St. Joseph Street, Mobile, Alabama 36602
(Address of principal executive offices) (Zip Code)
(334) 431-7800
(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
for such shorter period that the registrant was required to file
such reports), and (2) has been subject to such filing requirements
for the past 90 days. Yes X . No .
Shares of common stock ($0.01 Par) outstanding at March 31,
1998: 4,247,586
Page 1 of 18
SOUTH ALABAMA BANCORPORATION,INC. AND SUBSIDIARIES
INDEX TO FORM 10 - Q
PART I. Financial Information Page Number
Consolidated Statements of Condition
March 31, 1998 and December 31, 1997 3
Consolidated Statements of Operations
Three Months Ended March 31, 1998 and 1997 4
Consolidated Statements of Cash Flows
Three Months Ended March 31, 1998 and 1997 5
Notes to Consolidated Financial Statements
March 31, 1998 6-10
Management's Discussion and Analysis of
Financial Condition and Results of
Operations 11-17
PART II. Other Information 18
. . PART I. FINANCIAL INFORMATION
<TABLE>
SOUTH ALABAMA BANCORPORATION, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CONDITION (Unaudited)
<CAPTION>
March 31, December 31,
1998 1997
(Unaudited)
(Dollars in thousands)
<S> <C> <C>
A S S E T S
Cash and Due from Banks $ 18,089 $ 16,504
Federal Funds Sold 31,627 25,293
Total Cash and Cash Equivalents 49,716 41,797
Interest Bearing Deposits 100 100
Securities Available for Sale (at Market) 113,884 110,255
Securities Held to Maturity
(Market value of $7,216 and $8,483,
respectively) 7,089 8,345
Loans 191,309 196,644
Less: Unearned Loan Income <113> <127>
Allowance for Loan Losses <2,706> <2,685>
Loans, Net 188,490 193,832
Premises and Equipment 7,534 7,064
Other Real Estate Owned,Net 14
Accrued Income Receivable 3,085 3,447
Intangible assets 3,951 3,993
Other Assets 1,487 762
Total $375,350 $369,595
L I A B I L I T I E S
Non-interest Bearing Demand Deposits $ 57,097 $ 58,904
Interest Bearing Demand Deposits 113,444 110,199
Savings Deposits 23,566 22,849
Large Denomination Time Deposits
(of $100 or more) 45,998 44,494
Time Deposits 82,544 78,731
Total Deposits 322,649 315,177
Short-Term Borrowing 3,538 6,468
Other Liabilities 2,992 2,488
Total Liabilities 329,179 324,133
S H A R E H O L D E R S' E Q U I T Y
Common Stock
Par Value $0.01
Shares Authorized 5,500,000
Shares Outstanding 1998-4,247,586
1997-4,245,586 42 42
Capital Surplus 33,271 33,244
Retained Earnings 11,941 11,361
Net Unrealized Gain (Loss) on Securities
Available for Sale 917 815
Total Shareholders' Equity 46,171 45,462
Total $375,350 $369,595
(See accompanying notes to consolidated financial statements.)
</TABLE>
<TABLE>
SOUTH ALABAMA BANCORPORATION, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS(Unaudited)
<CAPTION>
Three Months Ended March 31,
1998 1997
(Dollars in thousands except
per share amounts)
<S> <C> <C>
Interest Revenue:
Loans $ 4,475 $ 4,415
Investments:Taxable 1,313 1,405
Non-Taxable 447 378
Other 367 105
Total Interest Revenue 6,602 6,303
Interest Expense:
Deposits 2,895 2,476
Other 67 65
Total Interest Expense 2,962 2,541
Net Interest Revenue 3,640 3,762
Provision for Loan Losses 77 61
Net Interest Revenue After Provision
for Loan Losses 3,563 3,701
Non-Interest Revenue:
Trust Income 324 280
Service Charges on Deposit Accounts 321 316
Securities Gains and Losses,net (2) 9
Other Income, Charges and Fees 94 91
Total Non-Interest Revenue 737 696
Non-Interest Expense:
Salaries 1,298 1,199
Pensions and Employee Benefits 340 311
Net Occupancy Expense 208 206
Furniture and Equipment Expense 223 222
Intangible Amortization 42 42
Other Expense 735 763
Total Non-Interest Expense 2,846 2,743
Income Before Income Taxes 1,454 1,654
Income Tax Expense 407 483
Net Income $1,047 $ 1,171
Basic Earnings Per Common Share $ 0.25 $ .28
Diluted Earnings Per Share $ 0.24 $ .28
(See accompanying notes to consolidated financial statements.)
</TABLE>
<TABLE>
SOUTH ALABAMA BANCORPORATION, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
<CAPTION>
Three Months Ended March 31,
1998 1997
(Dollars in thousands)
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income $ 1,047 $ 1,171
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation and amortization 316 370
Provision for loan losses 77 61
Securities gains and losses,net 2 <9>
Deferred income tax provision (benefit) 2 82
(Increase) decrease in:
Income receivable 362 232
Other assets <725> 75
Increase (decrease) in other liabilities 444 73
Net cash provided by operating activities 1,525 2,055
CASH FLOWS FROM INVESTING ACTIVITIES
Net decrease in interest bearing
deposits 0 0
Net (increase) decrease in loans 5,251 <2,147>
Purchase of premises and equipment <669> <87>
Net decrease in other real estate owned 0 0
Proceeds from sale of securities
available for sale 0 9
Proceeds from maturities of investments 15,314 4,680
Purchase of investments <17,604> <3,484>
Net cash provided by (used in) investing
activities 2,292 <1,029>
CASH FLOWS FROM FINANCING ACTIVITIES
Net increase (decrease) in deposits 7,472 <1,472>
Net increase (decrease) in short-
term borrowing (2,930) <267>
Proceeds from issuance of stock 27 0
Dividends paid <467> <423>
Net cash provided by (used in) financing
activities 4,102 <2,162>
NET INCREASE <DECREASE> IN CASH
AND CASH EQUIVALENTS 7,919 <1,136>
Cash and cash equivalents at beginning
of period 41,797 29,913
Cash and cash equivalents at end of
period $49,716 $28,777
Supplemental disclosures of cash flow
information:
Interest paid in cash $ 2,933 $ 2,622
Income taxes paid in cash 0 175
(See accompanying notes to consolidated financial statements.)
</TABLE>
SOUTH ALABAMA BANCORPORATION, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
NOTE A: The accompanying unaudited consolidated financial statements
have been prepared in accordance with generally accepted
accounting principles for interim financial information and
with the instructions to Form 10-Q and Rule 10-01 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. The
information furnished reflects all adjustments, consisting of
normal and recurring accruals, which in the opinion of
management are necessary for a fair presentation of the
results of the interim periods. Results for interim periods
may not necessarily be indicative of results to be expected
for the year.
For further information, refer to the consolidated financial
statements and footnotes thereto included in the Company's
report on Form 10-K for the year ended December 31, 1997.
NOTE B: The allowance for losses on loans for the three month periods
ended March 31, 1998 and 1997 are summarized as follows (in
thousands):
<TABLE>
<CAPTION>
1998 1997
Allowance for loan losses:
<S> <C> <C>
Balance at beginning of period $ 2,685 $ 2,600
Provision charged to
operating expense 77 61
Losses charged off <136> <103>
Recoveries 80 22
Balance at end of period $ 2,706 $ 2,580
</TABLE>
NOTE C: Basic earnings per share were computed by dividing net income
by the weighted average number of shares of common stock
outstanding during the three month periods ended March 31,
1998 and 1997.
Diluted earnings per share for the three month periods ended
March 31, 1998 and 1997, were computed by dividing net income
by the weighted average number of shares of common stock and
the dilutive effects of the shares awarded under the Stock
Option plans, based on the treasury stock method using an
average fair market value of the stock during the respective
periods.
In 1997, the Company adopted SFAS 128, "Earnings Per Share,"
effective December 15, 1997. As a result, the Company's
previously reported earnings per share amounts were restated.
The following table represents the earnings per share
calculations for the three months ended March 31, 1998 and
1997,(in thousands except per share amounts):
<TABLE>
<CAPTION>
Income Shares Earnings per share
March 31, 1998
<S> <C> <C> <C>
Net income $1,047
Basic earnings per share:
Income available to common
shareholders $1,047 4,247 $0.25
Dilutive securities
Stock option plan shares 78
Dilutive earnings per share:
Income available to common
shareholders plus assumed
conversions $1,047 4,325 $0.24
Income Shares Earnings per share
March 31, 1997
Net income $1,171
Basic earnings per share:
Income available to common
shareholders $1,171 4,227 $0.28
Dilutive securities
Stock option plan shares 16
Dilutive earnings per share:
Income available to common
shareholders plus assumed
conversions $1,171 4,243 $0.28
</TABLE>
NOTE D: The American Institute of Certified Public Accountants has
issued Statements of Position 98-1, "Accounting for the Costs
of Computer Software Developed or Obtained for Internal Use."
This statement requires capitalization of external direct
costs of materials and services; payroll and payroll-related
costs for employees directly associated; and interests costs
during development of computer software for internal use
(planning and preliminary costs should be expensed.) Also,
capitalized costs of computer software developed or obtained
for internal use should be amortized on a straight-line basis
unless another systematic and rational basis is more
representative of the software's use.
This statement is effective for financial statements for
fiscal years beginning after December 31, 1998 (prospectively)
and is not expected to have a material effect on the
consolidated financial statements.
NOTE E: The Company adopted SFAS No. 130 January 1, 1998. SFAS No. 130
established standards for reporting and display of
comprehensive income and its components.
The Company has classified the majority of its securities as
available for sale in accordance with FASB Statement No. 115.
For the quarter ended March 31, 1998, the net unrealized gain
on these securities increased by $160 thousand. For the
quarter ended March 31, 1997, the net unrealized gain (loss) on
these securities decreased by $670 thousand. Pursuant to
Statement No. 115, any unrealized gain or loss activity of
available for sale securities is to be recorded as an
adjustment to a separate component of shareholders' equity, net
of income tax effect. Accordingly, for the quarters ended
March 31, 1998 and 1997, the Company recognized a $102 thousand
increase and a $442 thousand decrease in the net unrealized
gain (loss) component of equity, respectively.
Since comprehensive income is a measure of all changes in
equity of an enterprise that result from transactions and other
economic events of the period, this change in unrealized gain
(loss) serves to increase or decrease comprehensive income.
The following table represents comprehensive income for the
quarter ended March 31, 1998 and 1997 (in thousands):
<TABLE>
<CAPTION>
1998 1997
<S> <C> <C>
Net Income $1,047 $1,171
Other comprehensive income (loss),
net of tax
Unrealized gain (loss) on securities 102 (442)
Comprehensive income $1,149 $ 729
</TABLE>
NOTE F: There have been no material changes in reported market risk
since year-end.
Management's Discussion and Analysis
of Financial Condition and Results of Operations
Presented below is an analysis of the consolidated financial
condition and results of operations of South Alabama Bancorporation,
Inc. (the "Company") and its wholly owned subsidiaries, South Alabama
Bank, First National Bank, Brewton, the Monroe County Bank, and South
Alabama Trust Company. This analysis focuses upon significant changes
in financial condition between December 31, 1997 and March 31, 1998, and
significant changes for the three month periods ended March 31, 1998
and 1997.
In January 1998, the trust departments of South Alabama Bank and
First National Bank, Brewton were merged to form South Alabama Trust
Company, a wholly owned subsidiary. This combination will allow the
Company to realize certain economies of scale from operational
expenses.
This report on Form 10-Q contains certain forward looking
statements with respect to financial condition, liquidity, non-
performing assets and results of operations, including the Notes to
Consolidated Financial Statements and statements in the following
discussion. The Company cautions readers that forward looking
statements are subject to risks and uncertainties that could cause
actual results to differ materially from those indicated in the forward
looking statements. Factors that may cause actual results to differ
materially from those contemplated include, among others, the stability
of interest rates, the rate of growth of the economy in the Company's
market area, the success of the Company's marketing efforts, the ability
to expand into new segments of the market area, competition, changes in
technology, the strength of the consumer and commercial credit sectors,
levels of consumer confidence, the impact of regulation applicable to
the Company and the performance of stock and bond markets.
Financial Condition
Total assets at March 31, 1998 were $375.4 million, an increase of
$5.8 million, or 1.6 percent, from $369.6 million at December 31, 1997.
The decrease in loans of $5.3 million, or 2.7 percent, and the increase
in deposits of $7.5 million, or 2.4 percent, was used in part to fund
the increase in investment securities of $2.4 million, or 2.0 percent,
and the increase in federal funds sold of $6.3 million, or 25.0 percent.
Time deposits, consisting of certificates of deposit, increased
$3.8 million, or 4.8 percent. Large denomination time deposits
increased $1.5 million, or 3.4 percent. The Company does not actively
seek large denomination time deposits as a source of funding. Non-
interest bearing demand deposits decreased $1.8 million, or 3.1 percent,
while interest bearing demand deposits increased $3.2 million, or 2.9
percent. Core deposits, defined as total deposits less time deposits,
increased by $2.2 million. Short-term borrowing decreased $2.9 million,
or 45.3 percent, from year-end 1997.
The Company's equity as a percent of total assets at March 31, 1998
was 12.3 percent, unchanged from December 31, 1997. The primary capital
ratio (defined as the sum of common and preferred stock, capital
surplus, retained earnings, allowance for loan losses and contingency
and capital reserves divided by total assets) was 13.0 percent,
unchanged from year-end 1997.
The Company and its subsidiary banks are required by the various
depository institutions regulatory agencies to maintain certain capital-
to-asset ratios. Risk-based capital guidelines consider risk factors
associated with various components of assets, both on and off the
Statement of Condition. Under these guidelines capital is measured in
two tiers. These capital tiers are used in conjunction with "risk-
weighted" assets in determining "risk-weighted" capital ratios. The
Company's Tier I capital, which is shareholders' equity less goodwill
and unrealized gains and losses on available for sale securities, was
$40.7 million at December 31, 1997 and $41.3 million at March 31, 1998.
Tier II capital, which is Tier I plus the allowable portion of the
allowance for loan losses, was $43.3 million at December 31, 1997 and
$44.0 million at March 31, 1998. The ratios, expressed as a percent of
total risk-weighted assets for Tier I and Tier II, were 17.24 percent
and 18.38 percent, respectively, at December 31, 1997, and 17.59 percent
and 18.75 percent, respectively, at March 31, 1998. Both the December
1997 and the March 1998 ratios exceed the minimum ratios of four percent
and eight percent for Tier I and Tier II, respectively.
The components of the Company's risk-based capital calculations
for March 31, 1998 are shown below (dollars in thousands):
<TABLE>
<CAPTION>
March 31,
1998
<S> <C>
Tier I capital--
Tangible Common shareholders'
equity $41,303
Tier II capital--
Allowable portion of the allowance
for loan losses 2,706
Total capital (Tiers I and II) $44,009
Risk-weighted assets $234,752
Quarterly average assets 363,652
Risk-based capital ratios:
Tier I capital 17.59%
Total capital (Tiers I and II) 18.75%
</TABLE>
During the first quarter of 1998 the Company declared a regular
quarterly dividend of $0.11 per share, payable April 1, 1998, to
shareholders of record March 16, 1998.
Liquidity
Liquidity management involves the ability to meet the day-to-day
cash flow requirements of customers, primarily depositors' withdrawals
and borrowers' requirements for funds. This is achieved by carefully
monitoring the amount of liquid assets available to meet these needs.
Liquid assets (cash and cash items, deposits with other banks, federal
funds sold and securities available for sale excluding pledged
securities) totaled $117.6 million at March 31, 1998. These assets
represented 31.3 percent of total assets at quarter end as compared to
24.7 percent at December 31, 1997. The net change in cash and cash
equivalents for the three month period ended March 31, 1998 was an
increase of $7.9 million. Cash includes currency on hand and demand
deposits with other financial institutions. Cash equivalents are defined
as short-term and highly liquid investments, which are readily
convertible to known amounts of cash and so near maturity that there is
no significant risk of changes in value because of changes in interest
rates. The Company has available, if needed, federal fund lines of
credit, Federal Reserve discount window operations, Federal Home Loan
Bank lines of credit, and an operating line of credit from a
correspondent bank.
Management is not aware of any trends, events or uncertainties that
will have or that are reasonably likely to have a material effect on the
liquidity, capital resources or operations of the Company. Management
is not aware of any current recommendations by regulatory authorities
which, if they were implemented, would have such an effect.
Non-Performing Assets
Non-performing assets include accruing loans 90 days or more past
due, loans on non-accrual, renegotiated loans and other real estate
owned. Commercial, business and installment loans are classified as
non-accrual by Management upon the earlier of: (i) a determination that
collection of interest is doubtful, or (ii) the time at which such loans
become 90 days past due, unless collateral or other circumstances
reasonably assure full collection of principal and interest.
<TABLE>
Summary of Non-Performing Assets
(Dollars in Thousands)
<CAPTION>
March 31, December 31,
1998 1997
<S> <C> <C>
Accruing loans 90 days or more past due $ 216 $ 43
Loans on non-accrual 520 665
Renegotiated loans 0 0
Total non-performing loans 736 708
Other real estate owned 14 0
Total non-performing assets $ 750 $ 708
Accruing Loans 90 days or more past due
as a percent of loans 0.11% 0.02%
Total non-performing loans as a
percent of loans 0.38% 0.36%
Total non-performing assets as a percent
of loans and other real estate owned 0.39% 0.36%
</TABLE>
Non-performing loans increased only slightly from year-end 1997.
The amount of impaired loans determined under SFAS No. 114 and 118
was not material. These credits were considered in determining the
adequacy of the allowance for loan losses and, while current, are
regularly monitored for changes within a particular industry or general
economic trends which could cause the borrowers severe financial
difficulties.
Any loans classified for regulatory purposes as loss, doubtful,
substandard or special mention, and not included above as non-performing
assets, do not (i) represent or result from trends or uncertainties
which management reasonably expects will materially impact future
operating results, or (ii) represent material credits about which
management is aware of any information which causes management to have
serious doubts as to the ability of such borrower to comply with the
loan repayment terms.
Results of Operations
THE FIRST QUARTER
The Company recorded net income of $1.0 million, or $0.25 per share,
during the first quarter of 1998, compared to net income in the first
quarter of 1997 of $1.2 million, or $0.28 per share. The increase in
total interest revenue of $299 thousand, or 4.7 percent, and the
increase in interest expense of $421 thousand, or 16.6 percent, were due
primarily to an increase in average interest earning assets and interest
bearing liabilities. The net interest margin decreased from 4.78
percent in the first quarter of 1997 to 4.36 percent in the first
quarter of 1998, resulting in a decrease in net interest revenue of $122
thousand, or 3.2 percent. Average interest bearing liabilities
increased 8.4 percent in the first quarter of 1998 compared to the first
quarter of 1997. The growth in these funds was used to fund federal
funds sold, the lowest yielding earning asset, as average loans and
investment securities were relatively unchanged. Contributing also to
the narrower net interest margin was the fact that several higher
yielding agency securities have been called over the past year and
replaced with lower yielding securities. Management provided $77
thousand for loan losses during the first quarter of 1998, compared to
a $61 thousand provision for the first quarter of 1997. Net charge offs
during the first three months of 1998 were $56 thousand compared to $81
thousand in the first three months of 1997. The allowance for loan
losses at March 31, 1998 and December 31, 1997 as a percent of loans was
1.41 percent and 1.37 percent respectively. The increase in the
allowance for loan losses as a percentage of loans was due primarily to
the decrease in loans. The allowance for loan losses represented 3.68
times non-performing loans at March 31, 1998 and 3.79 times non-
performing loans at December 31, 1997. Management reviews the adequacy
of the allowance for loan losses on a continuous basis by assessing the
quality of the loan portfolio, including non-performing loans, and
adjusting the allowance when appropriate. The allowance for loan losses
was considered adequate at March 31, 1998.
Non-interest revenue was $737 thousand for the first quarter of
1998, compared to $696 thousand for the same period in 1997, an increase
of 5.9 percent, due primarily to the increase in Trust Company revenue
of $44 thousand.
Salary and employee benefit expense increased $128 thousand, or 8.5
percent, caused by an increase in full time equivalent employees from
195 at March 31, 1997 to 198 at March 31, 1998 and by merit increases.
Net occupancy expense increased $2 thousand when compared to the same
period in 1997, while furniture and equipment expense increased $1
thousand.
Other expenses include data processing fees for the trust company,
FDIC insurance, insurance costs, accounting and legal fees, stationery
and supplies, credit card service fees, loan collection fees and
advertising. Other non-interest expense in first quarter 1998 decreased
by $28 thousand, or 3.7 percent.
Income tax expense was $407 thousand for the first quarter of 1998,
compared to $483 thousand for the same period in 1997. The decrease in
income tax expense in 1998 compared to 1997 resulted primarily from a
decrease in taxable income.
Item 4. Submission of Matters to a Vote of Security Holders
There were no matters submitted to a vote of security holders
during the quarter ended March 31, 1998.
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
(b) Reports on Form 8-K
There were no reports filed of Form 8-K for the three month period
ended March 31, 1998.
Pursuant to the requirement of the Securities and Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by
the undersigned thereunto duly authorized.
SOUTH ALABAMA BANCORPORATION
05/14/1998 /s/W. Bibb Lamar, Jr.
Date W. Bibb Lamar, Jr.
President
05/14/1998 /s/F. Michael Johnson
Date F. Michael Johnson
Chief Financial Officer
<TABLE> <S> <C>
<ARTICLE> 9
<LEGEND>
This schedule contains summary financial information extracted from SEC Form
10-Q and is qualified in its entirety by reference to such financial statements.
</LEGEND>
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> MAR-31-1998
<CASH> 18,089
<INT-BEARING-DEPOSITS> 100
<FED-FUNDS-SOLD> 31,627
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 113,884
<INVESTMENTS-CARRYING> 7,089
<INVESTMENTS-MARKET> 7,216
<LOANS> 191,196
<ALLOWANCE> (2,706)
<TOTAL-ASSETS> 375,350
<DEPOSITS> 322,649
<SHORT-TERM> 3,538
<LIABILITIES-OTHER> 2,992
<LONG-TERM> 0
0
0
<COMMON> 45,254
<OTHER-SE> 917
<TOTAL-LIABILITIES-AND-EQUITY> 375,350
<INTEREST-LOAN> 4,475
<INTEREST-INVEST> 1,760
<INTEREST-OTHER> 367
<INTEREST-TOTAL> 6,602
<INTEREST-DEPOSIT> 2,895
<INTEREST-EXPENSE> 2,962
<INTEREST-INCOME-NET> 3,640
<LOAN-LOSSES> 77
<SECURITIES-GAINS> (2)
<EXPENSE-OTHER> 2,846
<INCOME-PRETAX> 1,454
<INCOME-PRE-EXTRAORDINARY> 1,047
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,047
<EPS-PRIMARY> .25
<EPS-DILUTED> .24
<YIELD-ACTUAL> 4.36
<LOANS-NON> 520
<LOANS-PAST> 216
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 2,277
<ALLOWANCE-OPEN> 2,685
<CHARGE-OFFS> 136
<RECOVERIES> 80
<ALLOWANCE-CLOSE> 2,706
<ALLOWANCE-DOMESTIC> 2,174
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 532
</TABLE>
