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, 2000 Commission File Number 0-15040
--------------- -------
PennRock Financial Services Corp.
------------------------------------------------------
(Exact name of registrant as specified in its charter)
Pennsylvania 23-2400021
------------------------------- --------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
1060 Main St.
Blue Ball, Pennsylvania 17506
--------------------------------------- ----------
(Address of principal executive offices) (Zip code)
(717) 354-4541
--------------------------------------------------
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 periods 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 [ ]
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practical date.
Class Outstanding at May 8, 2000
------------------------------ --------------------------------
Common Stock ($2.50 par value) 5,964,015 Shares
<PAGE> 2
PENNROCK FINANCIAL SERVICES CORP.
---------------------------------
FORM 10-Q
---------
For the Quarter Ended March 31, 2000
Contents
--------
PART I. FINANCIAL INFORMATION
- -----------------------------
Item 1. Financial Statements
Consolidated balance sheets - March 31, 2000, December 31, 1999 and
March 31, 1999.
Consolidated statements of income - Three months ended March 31, 2000
and 1999.
Consolidated statements of comprehensive income - Three months ended
March 31, 2000 and 1999.
Consolidated statements of cash flows - Three months ended March 31,
2000 and 1999.
Notes to condensed consolidated financial statements - March 31, 2000.
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations
PART II. OTHER INFORMATION
- --------------------------
Item 1. Legal Proceedings
Item 2. Changes in Securities
Item 3. Defaults Upon Senior Securities
Item 4. Submission of Matters to a Vote of Security Holders
Item 6. Exhibits and Reports on Form 8-K
SIGNATURES
- ----------
<PAGE> 3
PART I. FINANCIAL INFORMATION
For the Quarter Ended March 31, 2000
Item 1. Financial Statements
PENNROCK FINANCIAL SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
March 31, December 31, March 31,
(Amounts in thousands) 2000 1999 1999
------------ ----------- -------------
(Unaudited) (Unaudited)
<S> <C> <C> <C>
ASSETS
Cash and due from banks $ 23,782 $ 26,455 $ 18,908
Short-term investments 1,190 2,406 7,263
Mortgages held for sale 207 295 4,422
Securities available for sale 326,466 309,462 271,080
Loans:
Loans, net of unearned income 476,881 460,065 412,750
Allowance for loan losses (5,778) (5,514) (5,045)
--------- --------- ---------
Net loans 471,103 454,551 407,750
Bank premises and equipment 13,639 13,294 13,605
Accrued interest receivable 6,448 5,878 4,589
Bank owned life insurance 15,629 15,435
Other assets 14,237 14,670 8,852
--------- --------- ---------
Total assets $872,701 $842,446 $736,424
========= ========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Deposits:
Non-interest bearing $ 90,099 $ 87,524 $ 82,315
Interest bearing 554,498 543,891 478,379
--------- --------- ---------
Total deposits 644,597 631,415 560,694
Short-term borrowings 92,237 53,207 9,299
Long-term debt 65,000 90,000 90,000
Accrued interest payable 3,727 3,599 3,047
Other liabilities 4,733 4,992 6,203
--------- --------- ---------
Total liabilities 810,294 783,213 669,243
Stockholders' Equity:
Common stock, par value $2.50 per
share; authorized - 20,000,000
shares; issued - 6,077,614 15,194 15,194 15,194
Surplus 11,114 11,114 11,114
Accumulated other comprehensive
income (loss), net of tax (9,559) (10,616) 1,263
Retained earnings 48,217 46,609 41,438
Treasury stock at cost (113,599,
135,847 and 79,639 shares) (2,559) (3,068) (1,828)
--------- --------- ---------
Total stockholders' equity 62,407 59,233 67,181
--------- --------- ---------
Total liabilities and
stockholders' equity $872,701 $842,446 $736,424
========= ========= =========
</TABLE>
<PAGE> 4
PENNROCK FINANCIAL SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
<TABLE>
<CAPTION>
Three Months Ended
(Amounts in thousands) March 31,
------------------
2000 1999
------ ------
<S> <C> <C>
Interest income:
Interest and fees on loans $9,870 $8,530
Securities:
Taxable 3,846 2,459
Tax-exempt 1,457 1,593
Mortgages held for sale 5 68
Other 29 80
------- -------
Total interest income 15,207 12,730
Interest expense:
Deposits 6,201 4,479
Short-term borrowings 910 171
Long-term debt 1,188 1,263
------- -------
Total interest expense 8,299 6,413
------- -------
Net interest income 6,908 6,317
Provision for loan losses 371 222
------- -------
6,537 6,095
Other income:
Service charges on deposit
accounts 390 377
Other service charges and fees 62 59
Fiduciary activities 374 315
Security gains (losses), net 302 493
Mortgage banking 84 193
Other 432 187
------- -------
Total other income 1,644 1,624
------- -------
Net interest and other income 8,181 7,719
------- -------
Other expenses:
Salaries and benefits 3,051 2,646
Occupancy, net 332 295
Equipment depreciation and service 310 318
Other 1,205 976
------- -------
Total other expense 4,898 4,235
------- -------
Income before income taxes 3,283 3,484
Income taxes 535 778
------- -------
Net Income $2,748 $2,706
======= =======
Earnings per common share $ .46 $ .45
======= =======
Weighted average shares outstanding 6,008,404 6,008,404
========= =========
</TABLE>
Basic earnings per share and diluted earnings per share are the same for 2000
and 1999.
<PAGE> 5
PENNROCK FINANCIAL SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)
<TABLE>
<CAPTION>
Three Months Ended
(Amounts in thousands) March 31,
------------------
2000 1999
------ ------
<S> <C> <C>
Net income $2,748 $2,706
Other comprehensive income, net of tax:
Unrealized gains (losses) on
securities available for sale:
Gains (losses) arising during the
year, net of (tax) tax benefit
of ($647,000) and $522,000 1,256 (1,014)
Reclassification adjustment for
gains included in net income,
net of tax of $103,000 and
$168,000 (199) (325)
------- -------
Other comprehensive income (loss) 1,057 (1,339)
------- -------
Comprehensive income $3,805 $1,367
======= =======
</TABLE>
<PAGE> 6
PENNROCK FINANCIAL SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
<TABLE>
<CAPTION>
Three Months Ended
March 31,
(Amounts in thousands) -----------------------
2000 1999
--------- ---------
<S> <C> <C>
Net cash provided by operations $ 1,924 $ 5,107
Investing activities:
Proceeds from sales of securities available
for sale 9,196 29,614
Purchases of securities available for sale (25,678) (52,033)
Maturities of securities available for sale 1,643 23,760
Net increase in loans (16,923) (5,036)
Purchases of premises and equipment (632) (525)
-------- --------
Net cash used in investing activities (32,394) (4,220)
Financing activities:
Net increase (decrease) in non-interest
bearing deposits 2,575 (5,746)
Net increase in interest bearing deposits 10,607 16,394
Increase (decrease) in short-term borrowings 39,030 (4,481)
Decrease in long-term debt (25,000) (700)
Issuance of treasury stock 383 451
Acquisition of treasury stock 0 (647)
Cash dividends (1,014) (900)
-------- --------
Net cash provided by financing activities 26,581 4,371
-------- --------
Increase (decrease) in cash and
cash equivalents (3,889) 5,258
Cash and cash equivalents,
beginning of year 28,861 20,913
-------- --------
Cash and cash equivalents, end of period $24,972 $26,171
======== ========
</TABLE>
<PAGE> 7
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
March 31, 2000
NOTE 1. ACCOUNTING POLICIES
The accompanying consolidated financial statements include the accounts of
PennRock Financial Services Corp. and its subsidiaries. All material
intercompany balances and transactions have been eliminated in
consolidation. PennRock Financial Services Corp. (PennRock or the Company)
is a bank holding company incorporated under the laws of Pennsylvania in
1986. Blue Ball National Bank (the Bank) is a wholly owned subsidiary of
PennRock which provides a broad range of banking, trust and other financial
services to consumers, small businesses and corporations in south-central
and southeastern Pennsylvania. PennRock Insurance Group Inc., a wholly
owned subsidiary of the Bank, began operations in the first quarter of 1999
to offer and sell annuity products.
The information contained in the financial statements is unaudited. In the
opinion of management, all adjustments (consisting of normal recurring
accruals) considered necessary for a fair presentation of the results of
interim periods have been made. Accordingly, they do not include all of the
information and footnotes required by generally accepted accounting
principles for complete financial statements. Operating results for the
three months ended March 31, 2000 are not necessarily indicative of the
results that may be expected for the year ended December 31, 2000.
The accounting policies of PennRock Financial Services Corp. and
Subsidiaries, as applied in the consolidated interim financial statements
presented, are substantially the same as those followed on an annual basis
as presented in the 1999 Annual Report to shareholders.
NOTE 2. COMMITMENTS AND CONTINGENT LIABILITIES
The financial statements do not reflect various commitments and contingent
liabilities, such as commitments to extend credit, letters of credit,
guarantees, and liability for assets held in Trust, which arise in the
normal course of business. Commitments under outstanding letters of credit
amounted to $22.5 million and commitments to extend credit totaled $117.3
million at March 31, 2000. Management does not anticipate any significant
loss as a result of these transactions.
<PAGE> 8
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations
This section presents management's discussion and analysis of the financial
condition and results of operations of PennRock Financial Services Corp. and
subsidiary, Blue Ball National Bank. This discussion should be read in
conjunction with the financial statements which appear elsewhere in this
report.
FORWARD LOOKING STATEMENTS
In this report, we may have included certain forward looking statements
relating to such matters as anticipated financial performance, business
prospects, technological developments, new products and similar matters.
The Private Securities Litigation Reform Act of 1995 provides a safe harbor
for forward looking statements. In order to comply with the terms of the
safe harbor, we must inform you that a variety of factors could cause the
Company's actual results and experiences to differ materially from the
anticipated results or other expectations expressed in these forward looking
statements. Our ability to predict the results or the effect of future
plans and strategies is inherently uncertain. Factors that could affect
future results include changes in market interest rates, local and national
economic trends and conditions, competition for products and services,
changes in customer preferences, legislative and regulatory changes,
delinquency rates on loans, changes in accounting principles, policies or
guidelines, or the failure of major customers, vendors or suppliers. You
should consider these factors in evaluating any forward looking statements
and not place undue reliance on such statements. We are not obligated to
publicly update any forward looking statements we may make in this report
to reflect the impact of subsequent events.
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Total assets of PennRock increased $30.3 million or 3.6% since the end of
1999 and by $136.3 million or 18.5% over March 31, 1999. Securities
available for sale (before adjustment for unrealized gains or losses)
increased $15.4 million from year-end 1999 and $57.3 million from March 31,
1999 while loans outstanding grew $16.8 million from year-end 1999 and $47.3
million from last year. This growth has been funded by deposits which
increased $13.2 million from year end 1999 and by $70.7 million from the
first quarter of last year and by borrowed funds which increased $14.0
million from year-end and by $57.9 million from last year.
Net income for the quarter was $2.75 million or $.46 per share compared with
$2.71 million or $.45 per share for the first quarter of 1999, an increase
of $42,000 or 1.6%. Net interest income increased $591,000 from the first
quarter of 1999 due primarily to volume increases, while other income
excluding security gains increased $211,000 and other expenses increased
$663,000.
Dividends declared for the quarter totaled $1.0 million or $.17 per share.
This represented 36.9% of net income. Dividends declared during the first
quarter of last year were $900,000 or $.15 per share.
<PAGE> 9
NET INTEREST INCOME
Net interest income is the product of the volume of average earning assets
and the average rates earned on them, less the volume of average interest
bearing liabilities and the average rates paid on them. The amount of net
interest income is affected by changes in interest rates, volumes and the
mix of earning assets and paying liabilities. For analytical purposes, net
interest income is adjusted to a taxable equivalent basis. This adjustment
allows for a more accurate comparison among taxable and tax-exempt assets by
increasing tax-exempt income by an amount equivalent to the federal income
tax which would have been paid if this income were taxable at the statutory
rate of 34%.
Table 1 presents net interest income on a fully taxable equivalent basis for
the first quarters 2000 and 1999. For the first quarter of 2000, net
interest income on a fully taxable equivalent basis totaled $7.6 million, an
increase of $531,000 or 7.5% from $7.1 million earned for the same period of
1999.
TABLE 1 - NET INTEREST INCOME
<TABLE>
<CAPTION>
Three Months Ended
(Amounts in thousands) March 31,
-------------------
2000 1999
------- -------
<S> <C> <C>
Total interest income $15,207 $12,730
Total interest expense 8,299 6,413
------- -------
Net interest income 6,908 6,317
Tax equivalent adjustment 732 792
------- -------
Net interest income
(fully taxable equivalent) $ 7,640 $ 7,109
======= =======
</TABLE>
Table 2 presents the average balances, taxable equivalent interest income
and expense and rates for PennRock's assets and liabilities for the three
months ended March 31, 2000 and 1999. For the first quarter of 2000
compared with the first quarter of 1999, interest income increased as a
result of volume increases and from the yield on earning assets which
increased 23 basis points. Interest expense increased both due to volume
increases and the cost of funds which increased 31 basis points. Both the
net interest margin and spread declined during the first quarter of 2000
compared with last year because funding costs increased faster than earning
asset yields.
<PAGE> 10
TABLE 2 - AVERAGE BALANCES, RATES, AND INTEREST INCOME AND EXPENSE
<TABLE>
<CAPTION>
Three Months Ended March 31,
(Amounts in thousands) -----------------------------------------------------
2000 1999
-------------------------- --------------------------
Average Yield/ Average Yield/
Balance Interest Rate Balance Interest Rate
-------- -------- ------ -------- -------- ------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Interest earning assets:
Short-term investments $ 2,271 $ 29 5.14% $ 6,365 $ 80 5.10%
Mortgages held for sale 231 5 8.71% 3,748 68 7.36%
Securities available for sale 314,055 5,973 7.65% 271,120 4,785 7.16%
Loans:
Mortgage 271,082 5,534 8.21% 234,703 4,806 8.30%
Commercial 118,021 2,649 9.03% 102,573 2,161 8.54%
Consumer 79,589 1,749 8.84% 73,165 1,622 8.99%
-------- ------- -------- -------
Total loans 468,692 9,932 8.52% 410,441 8,589 8.49%
-------- ------- -------- -------
Total earning assets 785,249 15,939 8.16% 691,674 13,522 7.93%
Other assets 61,387 ------- 42,554 -------
-------- --------
Total assets $846,636 $734,228
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Interest bearing deposits:
Demand $150,288 1,402 3.75% $127,299 1,045 3.33%
Savings 57,244 281 1.97% 57,753 316 2.22%
Time 339,690 4,518 5.35% 287,054 3,618 5.11%
-------- ------- -------- -------
Total interest bearing deposits 547,222 6,201 4.56% 472,106 4,979 4.28%
Short-term borrowings 64,223 910 5.70% 15,330 171 4.52%
Long-term debt 82,857 1,188 5.77% 90,148 1,263 5.68%
-------- ------- -------- -------
Total interest bearing liabilities 694,302 8,299 4.81% 577,584 6,413 4.50%
Non-interest bearing deposits 83,911 ------- 79,561 -------
Other liabilities 8,022 9,209
Stockholders' equity 60,401 67,874
-------- -------
Total liabilities and stockholders'
equity $846,636 $734,228
======== ========
Net interest income $ 7,640 $ 7,109
======= =======
Interest rate spread 3.36% 3.43%
====== ======
Net interest margin 3.91% 4.17%
====== ======
</TABLE>
<PAGE> 11
PROVISION AND ALLOWANCE FOR LOAN LOSSES
The provision for loan losses charged to earnings was $371,000 for the first
quarter of 2000 compared with $222,000 for the first quarter of last year.
The provision is based on management's estimate of the amount needed to
maintain an adequate allowance for loan losses. The adequacy of the
allowance will continue to be examined in light of past loan loss
experience, current economic conditions, volume of non-performing and
delinquent loans and other relevant factors. The allowance is established
at a level considered by management to be adequate to absorb potential
future losses contained in the portfolio and is monitored on a continuous
basis with independent formal reviews conducted semiannually. The
allowance is increased by provisions charged to expense and decreased by
net charge-offs. Table 3 reflects an analysis of the allowance for loan
losses for the first quarters of 2000 and 1999.
TABLE 3 - ANALYSIS OF ALLOWANCE FOR LOAN LOSSES
<TABLE>
<CAPTION>
Three Months Ended
(Amounts in thousands) March 31,
--------------------
2000 1999
-------- --------
<S> <C> <C>
Balance, beginning of period $5,514 $4,897
Provision charged to operating expense 371 222
Total loans charged off (115) (104)
Total recoveries 8 30
------- -------
Net (charge-offs) recoveries (107) (74)
------- -------
Balance, end of period $5,778 $5,045
======= =======
Total loans:
Average $468,692 $410,577
Period-end 476,881 412,750
Ratios:
Net charge-offs to
average loans (annualized) .09% .07%
Allowance for loan losses to
period-end loans 1.21% 1.22%
</TABLE>
NON-PERFORMING ASSETS
Table 4 reflects PennRock's non-performing assets at March 31, 2000,
December 31, 1999 and March 31, 1999. PennRock's policy is to discontinue
the accrual of interest on loans for which the principal or interest is
past due 90 days or more unless the loan is well secured and corrective
action has begun or the loan is in the process of collection. When a loan
is placed on non-accrual status, any unpaid interest is charged against
income. Other real estate owned represents property acquired through
foreclosure.
<PAGE> 12
TABLE 4 - NON-PERFORMING ASSETS
<TABLE>
<CAPTION>
March 31, December 31, March 31,
(Amounts in thousands) 2000 1999 1999
---------- ------------ ----------
<S> <C> <C> <C>
Non-accrual loans $1,114 $1,114 $ 948
Loans accruing but 90 days past due
as to principal or interest 1,622 853 512
---------- --------- ----------
Total non-performing loans 2,736 1,967 1,460
Other real estate owned 78 162
--------- --------- ---------
Total non-performing assets $2,814 $2,129 $1,460
========= ========= =========
Ratios:
Non-accrual loans to total loans 0.59% 0.43% 0.35%
Non-accrual loans to total loans and
other real estate owned 0.59% 0.46% 0.35%
Allowance for loan losses to
non-accrual loans 205.33% 280.33% 345.55%
</TABLE>
In April 2000, the Bank transferred loans totaling $4.5 to non-accrual status.
LIQUIDITY
The purpose of liquidity management is to ensure that there are sufficient
cash flows available to meet a variety of needs. These include financial
commitments such as satisfying the credit needs of our borrowers and
withdrawals by our depositors, the ability to capitalize on investment and
business opportunities as they occur, and the funding of PennRock's own
operations. Liquidity is provided by maturities and sales of investment
securities, loan payments and maturities and liquidating money market
investments such as federal funds sold. Liquidity is also provided by
short-term lines of credit with various correspondents and fixed and
variable rate advances from the Federal Home Loan Bank of Pittsburgh and
other correspondent banks. However, PennRock's primary source of liquidity
lies in PennRock's ability to renew, replace and expand its base of core
deposits (consisting of demand, NOW, money market, savings, and time
deposits of less than $100,000).
Total deposits increased $13.2 million or 2.1% since year end and by $70.7
million or 12.6% from last year. Total borrowed funds increased $14.0
million since year end and by $57.9 million from last year. Table 5
reflects the changes in the major classifications of deposits and borrowings
by comparing the balances at the end of the first quarter of 2000 with
year-end and the first quarter of 1999.
<PAGE> 13
TABLE 5 - DEPOSITS AND BORROWINGS BY MAJOR CLASSIFICATION
(Amounts in thousands)
<TABLE>
<CAPTION>
March 31, December 31, March 31,
2000 1999 1999
------------- ------------ -------------
<S> <C> <C> <C>
Non-interest bearing deposits $ 90,099 $ 87,524 $ 82,315
NOW accounts 37,924 38,418 37,036
Money market deposit accounts 110,732 117,603 98,669
Savings accounts 58,051 57,545 58,488
Time deposits under $100,000 306,871 283,309 249,595
--------- --------- ---------
Total core deposits 603,677 584,399 526,103
Time deposits of $100,000 or more 40,920 47,016 34,591
--------- --------- ---------
Total deposits 644,597 631,415 560,694
Short-term borrowings 92,237 53,207 9,299
Long-term debt 65,000 90,000 90,000
--------- --------- ---------
Total deposits and borrowings $801,834 $774,622 $659,993
========= ========= =========
</TABLE>
CAPITAL RESOURCES:
Total stockholders' equity decreased $4.8 million or 7.1% from March 31,
1999 and increased $3.2 million or 5.4% since year-end 1999. Stockholders'
equity is impacted by changes in the unrealized market gains and losses of
the securities available for sale portfolio, net of deferred taxes and is
shown on the consolidated balance sheets as a component of stockholders'
equity as accumulated other comprehensive income, net of tax. This
portfolio had a net unrealized gain as of March 31, 1999 and net unrealized
losses as of December 31, 1999 and March 31, 2000.
On June 8, 1999, the Company announced that the Board of Directors had
authorized the purchase of up to 200,000 shares of its outstanding common
stock. The shares are to be used for general corporate purposes including
employee benefit and executive compensation plans or for the dividend
reinvestment plan. As of March 31, 2000, the Company held 113,599 shares as
treasury stock.
Table 6 shows PennRock's capital resources at March 31, 2000 and at December
31 and March 31, 1999. PennRock and its subsidiary bank exceed all minimum
capital guidelines.
<PAGE> 14
TABLE 6 - CAPITAL RESOURCES
<TABLE>
<CAPTION>
March 31, December 31, March 31,
2000 1999 1999
------------- ------------ -------------
<S> <C> <C> <C>
Leverage ratio:
Total capital to total assets 9.17% 9.01% 9.57%
Tier 1 capital to total assets 8.47% 8.33% 8.86%
Risk-based capital ratios:
Tier 1 capital to risk weighted
assets 11.87% 11.84% 13.07%
Total capital to risk weighted
assets 12.85% 12.80% 14.12%
</TABLE>
PART II. OTHER INFORMATION
---------------------------
For the Quarter Ended March 31, 2000
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
27. Financial Data Schedule regarding unaudited interim financial
information of PennRock for the quarter ended March 31, 2000.
(b) Reports on Form 8-K
There were no reports on Form 8-K filed for the three months ended March
31, 2000.
<PAGE> 15
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.
PennRock Financial Services Corp.
---------------------------------
(Registrant)
Date: May 12, 2000 By: /s/ Melvin Pankuch
- ----------------------- -----------------------------------------------
Melvin Pankuch
Executive Vice President and
Chief Executive Officer
Date: May 12, 2000 By: /s/ George B. Crisp
- ------------------------ -----------------------------------------------
George B. Crisp
Vice President and Treasurer
(Principal Financial and Accounting Officer)
<TABLE> <S> <C>
<ARTICLE> 9
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-2000
<PERIOD-START> JAN-01-2000
<PERIOD-END> MAR-31-2000
<CASH> 23,782
<INT-BEARING-DEPOSITS> 0
<FED-FUNDS-SOLD> 1,190
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 326,466
<INVESTMENTS-CARRYING> 0
<INVESTMENTS-MARKET> 0
<LOANS> 476,881
<ALLOWANCE> 5,778
<TOTAL-ASSETS> 872,701
<DEPOSITS> 644,597
<SHORT-TERM> 92,237
<LIABILITIES-OTHER> 8,460
<LONG-TERM> 65,000
0
0
<COMMON> 15,194
<OTHER-SE> 47,213
<TOTAL-LIABILITIES-AND-EQUITY> 872,701
<INTEREST-LOAN> 9,870
<INTEREST-INVEST> 5,303
<INTEREST-OTHER> 34
<INTEREST-TOTAL> 15,207
<INTEREST-DEPOSIT> 6,201
<INTEREST-EXPENSE> 8,299
<INTEREST-INCOME-NET> 6,908
<LOAN-LOSSES> 371
<SECURITIES-GAINS> 302
<EXPENSE-OTHER> 4,898
<INCOME-PRETAX> 3,283
<INCOME-PRE-EXTRAORDINARY> 3,283
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 2,748
<EPS-BASIC> .46
<EPS-DILUTED> .46
<YIELD-ACTUAL> 3.91
<LOANS-NON> 1,114
<LOANS-PAST> 1,622
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 5,514
<CHARGE-OFFS> 115
<RECOVERIES> 8
<ALLOWANCE-CLOSE> 5,778
<ALLOWANCE-DOMESTIC> 5,778
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
