Form 10-QSB
U. S. Securities and Exchange Commission
Washington, DC 20549
[X] Quarterly Report Under Section 13 or 15(d) of the Securities Exchange
Act of 1934
For the 9-month period ended September 30, 1996.
[ ] Transition Report Under Section 13 or 15(d) of the Securities Exchange
Act of 1934
For the transition period from ______________ to ______________
Commission File No. 000-18445
Benchmark Bankshares, Inc.
(Name of Small Business Issuer in its Charter)
Virginia 54-1460991
(State or Other Jurisdiction of (I.R.S. Employer ID No.)
Incorporation or Organization)
100-102 South Broad Street
Kenbridge, Virginia 23944
(Address of Principal Executive Offices)
Issuer's Telephone Number: (804)676-8444
Check whether the issuer (1) filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act during the past 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.
(1) Yes [X] No [ ] (2) Yes [X] No [ ]
State the number of shares outstanding of each of the issuer's classes
of common equity, as of the latest applicable date:
1,449,849.901
Form 10-QSB
Benchmark Bankshares, Inc.
Index
September 30, 1996
Part I Financial Information
Item 1 Consolidated Balance Sheet
Consolidated Statement of Income
Condensed Consolidated Statement of Cash Flows
Notes to Consolidated Financial Statements
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 5 Other Information
Item 6 Report on Form 8K
<TABLE>
Form 10-QSB
Benchmark Bankshares, Inc.
Consolidated Balance Sheet
<CAPTION>
(Unaudited) (Audited)
September 30, December 31,
1996 1995
---- ----
Assets
<S> <C> <C>
Cash and due from banks ..................................... $ 5,134,027 $ 4,397,058
Securities
Federal Agency obligations ............................... 7,632,363 7,870,567
State and municipal obligations .......................... 10,148,304 11,112,356
Other securities ......................................... 137,000 137,000
Federal funds sold ....................................... 5,358,000 5,862,000
Loans ....................................................... 116,777,242 103,723,930
Less
Unearned interest and fees ............................ (303,149) (275,998)
Loan loss reserve ..................................... (1,170,984) (1,037,344)
------------- -------------
Net Loans ....................................... 115,303,109 102,410,588
Premises and equipment - net ................................ 3,002,294 2,000,241
Accrued interest receivable ................................. 1,495,477 1,267,967
Deferred income taxes ....................................... 319,421 151,931
Other assets ................................................ 317,380 153,807
------------- -------------
Total Assets .................................... $ 148,847,375 $ 135,363,515
============================================================= ============= =============
</TABLE>
<TABLE>
Form 10-QSB
Benchmark Bankshares, Inc.
Consolidated Balance Sheet
<CAPTION>
(Unaudited) (Audited)
September 30, December 31,
1996 1995
---- ----
Liabilities and Shareholders' Equity
Deposits
<S> <C> <C>
Demand (non-interest bearing) ............................ $ 13,261,503 $ 12,392,332
NOW accounts ............................................. 13,373,856 11,589,895
Money market accounts .................................... 6,480,620 5,542,293
Savings .................................................. 8,196,107 7,679,313
Time, $100,000 and over .................................. 14,305,896 12,734,404
Other time ............................................... 78,189,233 71,684,402
- ---------------------------------------------------------------- ------------- -------------
Total Deposits .................................. 133,807,215 121,622,639
Accrued interest payable .................................... 680,579 650,822
Accrued income tax payable .................................. -- 97,302
Dividends payable ........................................... -- 286,709
Other liabilities ........................................... 294,923 205,473
------------- -------------
Total Liabilities ............................... 134,782,717 122,862,945
Shareholders' Equity
Common stock, par value $.21 per share, authorized
4,000,000 shares; issued and outstanding
1,447,854.692 shares as of 9-30-96;
and authorized a4,000,000 shares, issued and
outstanding 1,433,544.679 shares as of 12-31-95 .......... 304,468 301,044
Capital surplus ............................................. 3,261,627 3,007,305
Undivided profits ........................................... 10,532,016 8,987,406
Unrealized security gains (losses) net of tax effect ........ (33,453) 204,815
------------- -------------
Total Shareholders' Equity ...................... 14,064,658 12,500,570
- ---------------------------------------------------------------- ------------- -------------
Total Liabilities and Shareholders' Equity ...... $ 148,847,375 $ 135,363,515
================================================================ ============= =============
</TABLE>
Note: The balance sheet at December 31, 1995 has been derived from the audited
financial statements at that date.
See notes to consolidated financial statements.
<TABLE>
Form 10-QSB
Benchmark Bankshares, Inc.
Consolidated Statement of Income
(Unaudited)
<CAPTION>
Nine Months Ended September 30,
1996 1995
---- ----
Interest Income
<S> <C> <C>
Interest and fees on loans .................... $ 8,404,562 $ 7,139,702
Interest on U. S. Government obligations ...... 406,524 278,121
Interest on State and municipal obligations ... 425,039 430,449
Interest on Federal funds sold ................ 172,258 351,468
Interest on other securities .................. 2,610 2,642
Total Interest Income ............. 9,410,993 8,202,382
Interest Expense
Interest on deposits .......................... 4,564,718 3,926,645
Net Interest Income ............... 4,846,275 4,275,737
Provision for Loan Losses ........................ 220,628 100,419
Net Interest Income after Provision 4,625,647 4,175,318
Non-Interest Income
Service charges, commissions, and fees on
deposits ................................... 258,419 256,701
Other operating income ........................ 168,983 190,876
(Losses) on sale of securities ................ (8,725) (1,855)
Rental income ................................. 5,400 5,400
Total Non-Interest Income ......... 424,077 451,122
Non-Interest Expense
Salaries and wages ............................ 1,322,776 1,137,299
Employee benefits ............................. 285,402 270,950
Occupancy expense ............................. 119,232 109,657
Furniture and equipment expense ............... 97,472 114,089
Other operating expense ....................... 602,160 672,589
Total Non-Interest Expense ........ 2,427,042 2,304,584
Net Income before Taxes ........... 2,622,682 2,321,856
Income Taxes ..................................... 789,640 690,277
Net Income ....................................... $ 1,833,042 $ 1,631,579
================================================== =========== ===========
Net Income per Share ............................. $ 1.27 $ 1.14
=========== ===========
See notes to consolidated financial statements.
</TABLE>
<TABLE>
Form 10-QSB
Benchmark Bankshares, Inc.
Consolidated Statement of Income
(Unaudited)
<CAPTION>
Three Months Ended September 30,
1996 1995
---- ----
Interest Income
<S> <C> <C>
Interest and fees on loans .................... $ 2,907,501 $ 2,481,881
Interest on U. S. Government obligations ...... 133,612 112,725
Interest on State and municipal obligations ... 135,440 147,690
Interest on Federal funds sold ................ 47,397 150,185
Total Interest Income ............. 3,223,950 2,892,481
Interest Expense
Interest on deposits .......................... 1,563,822 1,442,662
Net Interest Income ............... 1,660,128 1,449,819
Provision for Loan Losses ........................ 63,898 10,010
Net Interest Income after Provision 1,596,230 1,439,809
Non-Interest Income
Service charges, commissions, and fees on
deposits ................................... 89,961 90,401
Other operating income ........................ 59,105 70,354
Rental income ................................. 1,800 1,800
(Losses) on sale of securities ................ (624) (878)
Total Non-Interest Income ......... 150,242 161,677
Non-Interest Expense
Salaries and wages ............................ 450,620 393,005
Employee benefits ............................. 100,032 89,938
Occupancy expense ............................. 45,321 38,468
Furniture and equipment expense ............... 34,840 42,423
Other operating expense ....................... 200,640 184,123
Total Non-Interest Expense ........ 831,453 747,957
Net Income before Taxes ........... 915,019 853,529
Income Taxes ..................................... 278,930 248,289
Net Income ....................................... $ 636,089 $ 605,240
Net Income per Share ............................. $ 0.44 $ 0.42
See notes to consolidated financial statements.
</TABLE>
<TABLE>
Form 10-QSB
Benchmark Bankshares, Inc.
Condensed Consolidated Statement of Cash Flows
(Unaudited)
<CAPTION>
Nine Months Ended September 30,
1996 1995
---- ----
<S> <C> <C>
Cash Provided by Operations .................... $ 1,170,339 $ 1,274,934
Cash Provided by Financing Activities
Net increase in demand deposits and interest
bearing transaction accounts ............. 2,653,132 3,244,878
Net increase (decrease) in savings and money
market deposits .......................... 1,455,121 (1,512,739)
Net increase in certificates of deposit ..... 8,076,323 12,611,887
Increase (decrease) in dividends payable .... (286,709) (213,035)
Sale (redemption) of stock .................. 257,746 189,691
Notes payable ............................... -- 155,000
Total Cash Provided by Financing
Activities ........................... 12,155,613 14,475,682
Cash Used in Investing Activities
Purchase of securities ...................... (1,640,000) (6,105,000)
Sale of securities .......................... 509,747 849,545
Maturity of securities ...................... 2,035,352 964,493
Net increase in loans ....................... (12,892,521) (6,549,862)
Purchases of premises and equipment ......... (1,105,561) (57,156)
Total Cash Used by Investing Activities (13,092,983) (10,897,980)
Increase (Decrease) in Cash and Cash Equivalents 232,969 4,852,636
Beginning Cash and Cash Equivalents ............ 10,259,058 8,681,483
Ending Cash and Cash Equivalents ............... $ 10,492,027 $ 13,534,119
================================================ ============ ============
Supplemental Data
Interest paid ............................... $ 4,534,961 $ 3,770,265
Capitalized interest ........................ 3,269 --
Taxes paid .................................. 886,942 654,231
See notes to consolidated financial statements.
</TABLE>
<TABLE>
Form 10-QSB
Benchmark Bankshares, Inc.
Condensed Consolidated Statement of Cash Flows
(Unaudited)
<CAPTION>
Three Months Ended September 30,
1996 1995
---- ----
<S> <C> <C>
Cash Provided by Operations .......................... $ 439,944 $ 529,017
Cash Provided by Financing Activities
Net increase in demand deposits
and interest bearing transaction accounts ...... 2,210,921 428,843
Net increase (decrease) in savings and money
market deposits ................................ 384,541 (463,004)
Net increase in certificates of deposit ........... 2,979,252 3,753,738
Decrease in dividends payable ..................... (288,435) (214,003)
Increase in notes payable ......................... -- 155,000
Sale of stock ..................................... 130,456 96,058
------------
Total Cash Provided by Financing
Activities ......................... 5,416,735 3,756,632
Cash Used in Investing Activities
Purchase of securities ............................ -- (3,750,000)
Sale of securities ................................ -- 333,048
Maturity of securities ............................ 316,092 344,435
Net increase in loans ............................. (2,423,064) (286,907)
Purchases of premises and equipment ............... (256,270) (12,431)
------------
Total Cash Used by Investing Activities (2,363,242) (3,371,855)
------------
Increase (Decrease) in Cash and Cash Equivalents ..... 3,493,437 913,794
Beginning Cash and Cash Equivalents .................. 6,998,590 12,620,325
------------ ------------
Ending Cash and Cash Equivalents ..................... $ 10,492,027 $ 13,534,119
====================================================== ============ ============
Supplemental Data
Interest paid ..................................... $ 1,538,051 $ 1,389,952
Taxes paid ........................................ 278,930 234,199
See notes to consolidated financial statements.
</TABLE>
Form 10-QSB
Benchmark Bankshares, Inc.
Notes to Consolidated Financial Statements
September 30, 1996
1. Basis of Presentation
The accompanying consolidated financial statements and related
notes of Benchmark Bankshares, Inc. and its subsidiary, Benchmark
Community Bank, were prepared by management, which has the primary
responsibility for the integrity of the financial information. The
statements have been prepared in conformity with generally accepted
accounting principles appropriate in the circumstances and include
amounts that are based on management's best estimates and judgments.
In meeting its responsibilities for the accuracy of its
financial statements, management relies on the Company's internal
accounting controls. The system provides reasonable assurances that
assets are safeguarded and transactions are recorded to permit the
preparation of appropriate financial information.
The interim period financial information included herein is
unaudited; however, such information reflects all adjustments
(consisting solely of normal recurring adjustments), which are, in the
opinion of management, necessary to a fair presentation of financial
position, results of operation, and changes in financial position for
the interim periods herein reported.
2. Significant Accounting Policies and Practices
The accounting policies and practices of Benchmark Bankshares,
Inc. conform to generally accepted accounting principles and general
practice within the banking industry. Certain of the more significant
policies and practices follow:
(a) The consolidated financial statements of Benchmark Bankshares, Inc. and
its wholly owned subsidiary, Benchmark Community Bank, include the
accounts of both companies. All material inter-company balances and
transactions have been eliminated in consolidation.
(b) Investment Securities. Pursuant to guidelines established in
FAS 115, the Company has elected to classify a portion of its
current portfolio as securities available-for-sale. This
category refers to investments that are not actively traded,
but are not anticipated by management to be held to maturity.
Typically, these types of investments will be utilized by
management to meet short-term asset/liability management
needs. The remainder of the portfolio is classified as held to
maturity. This category refers to investments that are
anticipated by management to be held until they mature.
For purposes of financial statement reporting, securities
classified as available-for-sale are to be reported at fair
market value (net of any tax effect) as of the date of the
statements; however, unrealized holding gains or losses are to
be excluded from earnings and reported as a net amount in a
separate component of shareholders' equity until realized.
Securities classified as held to maturity are recorded at
cost. The resulting book value ignores the impact of current
market trends.
(c) Loans. Interest on loans is computed by methods which
generally result in level rates of return on principal amounts
outstanding (simple interest). Unearned interest on certain
installment loans is recognized as income using the rule of
78's method, which materially approximates the effective
interest method. Loan fees and related costs are recognized as
income and expense in the year the fees are charged and costs
incurred.
(d) Allowance for Loan Losses. The allowance for loan losses is
increased by provisions charged to expense and decreased by
loan losses net of recoveries. The provision for loan losses
is based on the Bank's loan loss experience and management's
detailed review of the loan portfolio which considers economic
conditions, prior loan loss experience, and other factors
affecting the collectivity of loans. Accrual of interest is
discontinued on loans past due 90 days or more when collateral
is inadequate to cover principal and interest or immediately
if management believes, after considering economic and
business conditions and collection efforts, that the
borrower's financial condition is such that collection is
doubtful.
(e) Premises and Equipment. Premises and equipment are stated at
cost less accumulated depreciation. Depreciation is computed
generally by the straight line basis over the estimated useful
lives of the assets. Additions to premises and equipment and
major betterments and replacements are added to the accounts
at cost. Maintenance and repairs and minor replacements are
expensed as incurred. Gains and losses on dispositions are
reflected in current earnings.
(f) Depreciation. For financial reporting, property and equipment
are depreciated using the straight line method; for income tax
reporting, depreciation is computed using statutory
accelerated methods. Leasehold improvements are amortized on
the straight line method over the estimated useful lives of
the improvements. Income taxes in the accompanying financial
statements reflect the depreciation method used for financial
reporting and, accordingly, include a provision for the
deferred income tax effect of depreciation which will be
recognized in different periods for income tax reporting.
(g) Earnings Per Share
Earnings per share were computed by using the average
shares outstanding for each period presented. The 1996 average
shares have been adjusted to reflect the sale of 8,631 shares
of the Company's common stock through the dividend
reinvestment plan on January 25, 1996 and 7,673.88 shares on
July 25, 1996. The 1995 average shares have been adjusted to
reflect the sale of 6,459 shares through the dividend
reinvestment program on January 31, 1995 and 6,859 shares on
July 31, 1995. The average shares of outstanding stock for the
first nine months of 1996 and 1995 were 1,447,854 shares and
1,429,052 shares, respectively.
The Company has granted options to purchase 74,500
shares of Benchmark Bankshares, Inc. stock to employees and
directors under two separate incentive stock plans. Based on
current trading values of the stock, the stock options are not
considered materially dilutive; therefore, the Company's
earnings per share are reported as a simple capital structure.
(h) Cash and Cash Equivalents
The term cash as used in the Condensed Consolidated Statement
of Cash Flows refers to all cash and cash equivalent
investments. For purposes of the statement, Federal Funds
sold, which have a one day maturity, are classified as cash
equivalents.
(i) The table below reflects the components of the Net Deferred Tax
Asset account as of September 30, 1996:
Deferred tax assets resulting from loan
loss reserves $359,544
Deferred tax liabilities resulting from
depreciation (57,356)
Unrealized securities losses 17,233
Net Deferred Tax Asset $319,421
Item 2 Management's Discussion and Analysis of Financial Condition
and Results of Operations
The following is management's discussion and analysis
of certain significant factors which have affected the
Company's financial position and operating results during the
periods included in the accompanying condensed financial
statements.
Nine Months Ending September 30: 1996 Versus 1995
Earnings Summary
Net income of $1,833,042 for the first nine months of
1996 increased $201,463 or 12.3% as compared to net income of
$1,631,579 earned during the first nine months of 1995.
Earnings per share of $1.27 as of September 30, 1996 increased
$.13 over the September 30, 1995 level of $1.14. The
annualized return on average assets of 1.7% decreased 2.2%
while the annualized return on average equity of 18.3%
decreased 8.0% when comparing first nine months 1996 results
with those of first nine months 1995.
The increase in earnings and return on assets
reflects a continued growth in loans and deposits with a
favorable interest rate spread.
Interest Income and Interest Expense
Total interest income of $9,410,993 for the first
nine months of 1996 increased $1,208,611 or 14.7% over
interest income of $8,202,382 recorded during the first nine
months of 1995. The major area of increase was in interest and
fees on loans, which was a direct result from the growth of
the loan portfolio. Since loan growth exceeded deposit growth
for the period, management had reduced the amount of funds
invested in both short and long-term investments. This
strategy led to higher yields on assets.
Total interest expense in the first nine months of
1996 increased to a level of $4,564,718. This amounted to an
increase of $638,073 or 16.2% over the level reached during
the first nine months of 1995. This increase in interest
expense resulted from deposit growth, as well as the payment
of higher interest rates to meet market competition.
Provision for Loan Losses
While the Company's loan loss experience ratio
remains low, management continues to set aside increasing
provisions to the loan loss reserve. During the first nine
months of 1996, the Bank increased the loan loss reserve by
$133,640 to a level of $1,170,984 or 1.0% of the outstanding
loan balance.
At year end 1995, the reserve level amounted to
$1,037,344 or 1.0% of the outstanding loan balance net of
unearned interest.
Non-Accrual Loans
Non-accrual loans consist of loans accounted for on a
non-accrual basis. These loans are maintained on a non-accrual
status because of deterioration in the financial condition of
the borrower or payment in full of principal or interest is
not expected or principal or interest has been in default for
a period of 90 days or more unless the asset is both well
secured and in the process of collection.
Non-Interest Income and Non-Interest Expense
Non-interest income of $424,077 decreased $27,045 or
6.0% for the first nine months of 1996 as compared to the
level of $451,122 reached during the first nine months of
1995. The decrease primarily resulted from $8,725 in losses
from the sale of securities.
Non-interest expense of $2,427,042 increased $122,458
or 5.3% for the first nine months of 1996 as compared to the
level of $451,122 reached during the first nine months of 1995
as increases in salaries due to staffing the new office were
offset by a decrease in other operating expenses.
Off Balance Sheet Instruments/Credit Concentrations
The Company is a party to financial instruments with
off balance sheet risk in the normal course of business to
meet the financing needs of its customers. Unless noted
otherwise, the Company does not require collateral or other
security to support these financial instruments. Standby
letters of credit are conditional commitments issued by the
Company to guarantee the performance of a customer to a third
party. Those guarantees are primarily issued to facilitate the
transaction of business between these parties where the exact
financial amount of the transaction is unknown, but a limit
can be projected. The credit risk involved in issuing letters
of credit is essentially the same as that involved in
extending loan facilities to customers. There is a fee charged
for this service.
As of September 30, 1996, the Bank had $930,539
outstanding letters of credit all of which will mature within
twelve months. These instruments are based on the financial
strength of the customer and the existing relationship between
the Company and the customer.
Liquidity
As of the end of the first nine months of 1996,
$51,388,029 or 44.0% of gross loans will mature or are subject
to repricing within one year. These loans are funded in part
by $14,305,896 in certificates of deposits of $100,000 or more
of which $3,114,279 mature in one year or less.
Currently, the Bank has a maturity average ratio for
the next twelve months of 72.7% when comparing assets and
deposits.
At year end 1995, $47,402,000 or 45.7% of gross loans
were scheduled to mature or were subject to repricing within
one year and $39,480,000 in certificates of deposit were
scheduled to mature during 1996.
Capital Adequacy
Total shareholder equity was $14,064,658 or 9.4% of
total assets as of September 30, 1996. This compared to
$12,500,570 or 9.2% of total assets as of December 31, 1995.
Primary capital (shareholders' equity plus loan loss
reserves) of $15,235,642 represents 10.2% of total assets as
of September 30, 1996 as compared to $13,537,914 or 10.0% of
total assets as of December 31, 1995.
The increase in the equity position resulted from the
sale of additional stock through the Dividend Reinvestment
Program as well as a significant increase in earnings in the
first nine months of 1996 versus the first nine months of
1995; however, this gain was somewhat offset by a decline in
the market value of securities classified as
available-for-sale.
Three Months Ending September 30: 1996 Versus 1995
The same operating policies and philosophies discussed in the
nine month discussion were prevalent throughout the third quarter and
the operating results were predictably similar.
Earnings Summary
Net income of $636,089 for the third quarter of 1996 increased
$30,849 or 5.1% as compared to the $605,240 earned during the third
quarter of 1995. Earnings per share of $.44 for the third quarter of
1996 increased $.02 or 4.8% when compared to the corresponding period
in 1995. The annualized return on average assets was 1.7% and the
return on average equity was 18.6% for the third quarter of 1996. This
compares to a return on average assets of 1.9% and a return on average
equity of 20.8% for the same period in 1995.
The increased earnings are an indication of the growth
experienced during the third quarter. The return on average assets and
equity reflect a slightly reduced interest spread, as market rates for
deposits grew more quickly than the market rates for loans in the trade
area, and a lower loan to deposit ratio.
Interest Income and Interest Expense
Total interest income of $3,223,950 for the third quarter of
1996 increased $331,469 or 11.5% from the total interest income of
$2,892,481 for the corresponding quarter in 1995. The increase resulted
from growth in the loan portfolio. Interest and fees on loans amounted
to $2,907,501. This represented an increase of $425,620 or 17.1% over
the corresponding period in 1995.
Interest expense for the third quarter of 1996 increased
$121,160 or 8.4% over the same period in 1995. The increase in interest
expense reflected the current economic trend of increased interest
rates as well as steady deposit growth.
Provisions for Loan Losses
During the third quarter, the demand for loans was strong and
the level of quality loans continued to increase. During the period,
the Bank provided an additional $63,898 to the reserve through its
provision for loan loss.
Loans and Deposits
During the third quarter of 1996, net loans grew $12,892,521.
This growth resulted from the continued strong loan demand experienced
throughout the Company's trade area which has expanded due to the
addition of the Crewe office.
Deposits increased by $12,184,576 or 10.0% for the three month
period ending September 30, 1996. Management feels that the growth in
deposits has resulted from an increase in the size of the trade area as
well as further penetration into existing market areas.
Form 10-QSB
Benchmark Bankshares, Inc.
September 30, 1996
Part II Other Information
Item 1 Legal Proceedings
None
Item 2 Changes in Securities
None
Item 3 Defaults Upon Senior Securities
None
Item 4 Submission of Matters to a Vote of Security Holders
None
Item 5 Other Information
None
Item 6 Report on Form 8-K
No reports on Form 8-K have been filed
during the quarter ended September 30, 1996.
Form 10-QSB
Benchmark Bankshares, Inc.
September 30, 1996
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.
Benchmark Bankshares, Inc.
(Registrant)
Date: 10-28-96 Ben L. Watson, III
President & CEO
Date: 10-28-96 Janice C. Whitlow
Cashier and Treasurer
<TABLE> <S> <C>
<ARTICLE> 9
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> SEP-30-1996
<CASH> 5134
<INT-BEARING-DEPOSITS> 0
<FED-FUNDS-SOLD> 5358
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 15556
<INVESTMENTS-CARRYING> 2237
<INVESTMENTS-MARKET> 2188
<LOANS> 116777
<ALLOWANCE> 1171
<TOTAL-ASSETS> 148847
<DEPOSITS> 133807
<SHORT-TERM> 0
<LIABILITIES-OTHER> 976
<LONG-TERM> 0
0
0
<COMMON> 304
<OTHER-SE> 13760
<TOTAL-LIABILITIES-AND-EQUITY> 148847
<INTEREST-LOAN> 8405
<INTEREST-INVEST> 1006
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<INTEREST-TOTAL> 9411
<INTEREST-DEPOSIT> 4565
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<INTEREST-INCOME-NET> 4846
<LOAN-LOSSES> 221
<SECURITIES-GAINS> (9)
<EXPENSE-OTHER> 2427
<INCOME-PRETAX> 2623
<INCOME-PRE-EXTRAORDINARY> 2623
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1833
<EPS-PRIMARY> 1.27
<EPS-DILUTED> 1.27
<YIELD-ACTUAL> 6.72
<LOANS-NON> 610
<LOANS-PAST> 740
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 6798
<ALLOWANCE-OPEN> 1037
<CHARGE-OFFS> 133
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<ALLOWANCE-CLOSE> 1171
<ALLOWANCE-DOMESTIC> 0
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 1171
</TABLE>
