FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
For Quarter Ended June 30, 1995
Commission file number 0-16706
Allegiance Banc Corporation
(Exact name of registrant as specified in its charter)
Delaware 52-1494123
(State or other jurisdiction of (IRS employer identification)
Incorporation or organization)
4719 Hampden Lane, Bethesda, MD 20814
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (301) 656-5300
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
Indicate the number of shares outstanding of each of the issuer's classes
of common stock:
Common Stock, $1.00 par value 1,695,863 shares
Class Outstanding at June 30, 1995
<TABLE>
<CAPTION>
ALLEGIANCE BANC CORPORATION
INDEX
<S> <C>
Page
Number
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
Consolidated Balance Sheets
June 30, 1995 and December 31, 1994
(Unaudited) . . . . . . . . . . . . . . . 3
Consolidated Statements of Income
Three and six months ended June 30, 1995,
and 1994 (Unaudited) . . . . . . . . . 4
Consolidated Statement of Cash Flows
Six months ended June 30, 1995 and 1994
(Unaudited) . . . . . . . . . . . . . . . . 5
Notes to Financial Statements . .. . . . . 6
Item 2. Management's Discussion and Analysis
of financial Condition and
Results of Operations . . . . 7
PART II. OTHER INFORMATION. . . . . . . . . . 15
Exhibits: Financia Data Schedule.. . . . . . . . N/A
SIGNATURES . . . . . . . . . . . . . . . . . . 16
</TABLE>
<TABLE>
<CAPTION>
ALLEGIANCE BANC CORPORATION
CONSOLIDATED BALANCE SHEETS
(Unaudited) (In thousands)
June 30, December 31,
1995 1994
ASSETS
<S> <C> <C>
Cash and due from banks $ 5,159 $ 5,339
Federal funds sold 0 3,000
Investment securities:
Available for sale-at fair value 7,383 9,445
Held to maturity-at amortized cost
fair value of $17,897 at 6/30/95
and $16,739 at 12/31/94 18,559 18,565
Loans 83,598 66,300
Less: Allowance for loan losses (945) (1 ,031)
Loans, net 82,653 65,269
Premises and equipment, net 1,599 1,530
Other real estate owned, net 989 1,307
Accrued interest receivable and other assets 1,968 1,871
TOTAL ASSETS $118,310 $ 106,326
LIABILITIES
Deposits:
Noninterest bearing $ 19,612 $ 18,855
Interest bearing 81,912 74,253
Total deposits 101,524 93,108
Short-term borrowing 4,206 1,394
Long-term borrowing 1,000 1,000
Other liabilities 435 246
Total liabilities 95,748 107,165
SHAREHOLDERS' EQUITY
Common Stock-$1.00 par value 1,696 1,696
6-30-95 12-31-94
Authorized 10,000,000 10,000,000
Issued 1,695,863 1,695,750
Surplus 10,640 10,640
Accumulated deficit (1,102) (1,418)
Net unrealized holding losses on
Securities available for sale (89) (340)
Total shareholders' equity 11,145 10,578
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY $118,310 $106,326
/TABLE
<PAGE>
<TABLE>
<CAPTION>
ALLEGIANCE BANC CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited) (In thousands, except per share data)
Three Months Six Months
ended June 30, ended June 30,
1995 1994 1995 1994
<S> <C> <C> <C> <C>
Interest Income
Interest and fees on loans $ 1,919 $ 1,190 $ 3,569 $ 2,425
Interest and dividends on investments 392 604 830 1,244
Interest on federal funds sold 34 52 63 82
Total interest income 2,345 1,846 4,462 3,751
Interest Expense
Interest on deposits 913 648 1,717 1,309
Interest on short-term borrowing 46 1 65 1
Interest on long-term borrowing 19 0 36 0
Total interest expense 978 649 1,818 1,310
Net Interest Income 1,367 1,197 2,644 2,441
(Benefit) Provision for loan losses 0 10 (100) 70
Net Interest Income After (Benefit)
Provision for Loan Losses 1,367 1,187 2,744 2,371
Other Operating Income
Service charges on deposit accounts 126 162 246 300
Gains on sales of securities 51 13 51 68
Other income 56 24 80 46
Total other operating income 233 199 377 414
Other Operating Expense
Salaries and employee benefits 613 572 1,254 1,110
Net occupancy and equipment expense 284 211 525 423
Other real estate owned expense 14 4 129 8
Other expense 335 349 731 674
Total other operating expense 1,246 1,136 2,639 2,215
Income Before Income Taxes 354 250 482 570
Applicable income tax expense 122 0 166 0
Net Income $ 232 $ 250 $ 316 $ 570
Per share information:
Net Income $ 0.14 $ 0.15 $ 0.19 $ 0.34
Dividends -0- -0- -0- -0-
</TABLE>
<TABLE>
<CAPTION>
ALLEGIANCE BANC CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)(In thousands)
Six months ended June 30, 1995 1994
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income $ 316 $ 570
Noncash items included in net income:
(Benefit) Provision for loan losses (100) 70
Depreciation and amortization 129 109
Gains on sales of securities (51) (68)
(Increase) in accrued interest
receivable and other assets (96) (323)
Increase in other liabilities 188 94
Other-net (160) (160)
Net cash provided (used) by operating activities 226 292
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of investment securities 0 (2,333)
Proceeds from sales of investment securities 2,264 6,610
Proceeds from maturities and principal payments
of investment securities 256 2,053
Net (increase) decrease in loans (17,297) 310
Bank premises and equipment purchased (193) (34)
Proceeds from sale of Other Real Estate Owned 335 0
Net cash (used) provided by investing activities (14,635) 6,606
CASH FLOWS FROM FINANCING ACTIVITIES:
Net increase (decrease) in deposits 8,417 (638)
Net increase in short-term borrowing 2,812 1,819
Sale of common stock 0 8
Net cash provided by financing activities 11,229 1,189
NET INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS (3,180) 8,087
CASH AND CASH EQUIV. , BEG. OF PERIOD 8,339 6,910
CASH AND CASH EQUIV. , END OF PERIOD $ 5,159 $ 14,997
</TABLE>
ALLEGIANCE BANC CORPORATION
NOTES TO FINANCIAL STATEMENTS
Notes
1. In the opinion of management, the accompanying unaudited consolidated
financial statements for June 30, 1995, and December 31, 1994 contain
all adjustments (consisting of normal recurring adjustments) in conformity
with generally accepted accounting principles necessary to present fairly the
financial position as of June 30, 1995, and December 31, 1994, the results of
operation for the six months and three months ended June 30, 1995 and 1994,
and cash flows for the six months ended June 30, 1995 and 1994.
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The accompanying consolidated financial statements present the
financial condition of the Company, Allegiance Banc Corporation, and its
wholly owned subsidiary, Allegiance Bank, N.A., as of June 30, 1995 and
December 31, 1994, and the results of operations for the second quarters of
1995 and 1994, and the six month periods ending June 30, 1995 and 1994.
FINANCIAL CONDITION
During the first six months of 1995, total assets increased by 11.3%,
from $106.3 million to $118.3 million.. Loans increased during the period by
$17.3 million, or 26.1% and now stand at $83.6 million. The loan growth was
funded by deposit increases of $8.4 million, as well as short-term borrowing
increases of $2.8 million and decreasing federal funds sold by $3.0 million.
Additionally, $2.2 million in securities were sold from the available-for-sale
investment portfolio.
Cash balances and federal funds sold decreased by $3.2 million in the
period as funds were used to fund loan growth. Cash, federal funds sold, and
short-term investment securities represent liquidity available for the Bank's
use.
As of June 30, 1995, outstanding loan balances were $83.6 million
compared to $66.3 million at December 31, 1994, which was an increase
of 26.1%. At the end of June, 1995, the Bank had approximately $6 million of
loan commitments expected to fund in the near future.
The investment portfolio decreased by almost $2.1 million during the
first six months of 1995. This change was reflected in the available-for-sale
portfolio dropping from $9.44 million to $7.38 million. The held-to-maturity
portfolio remained unchanged in the period. However, the market value of the
securities in the portfolio increased by $1.1 million from 12/31/94, as a
result of the drop
in market yields for similar securities so far this year. The unrealized loss
in the
held-to-maturity portfolio now stands at $660 thousand down from $1.83 million
at 12/31/94. The net unrealized holding losses represent a reduction in the
market
value ofthe securities and is not a reflection of credit risk. Securities
investments continue to be in U.S. Treasury and U.S. Government Agency
obligations which do not represent a credit risk.
Premises and equipment increased by $69 thousand in the first six months of
1995, primarily from telecommunications equipment, Wide Area Network (WAN),
and related computer and software purchases, as well as from the
capitalization of leasehold
improvements for the Bank's Silver Spring branch opened in June, 1995.
Deposits increased by $8.4 million, or 9.0%, in the first six months of
1995, and now stand at
$101.5 million, up from $93.1 million at year-end 1994. A decline in
money market deposits was more than offset by a $12.7 million increase in CD
balances. Demand and NOW accounts increased slightly in the period, rising by
$200 thousand. The Bank successfully introduced telephone banking, a new
sweep product and computer banking in the second quarter. All of these new
products and the opening of the Bank's seventh branch in Silver Spring,
Maryland are anticipated to create further deposit growth and provide our
corporate customers with more sophisticated tools to manage their businesses.
The ability to provide these products is a result of the Bank's conversion
to a new computer system in the fall of 1994.
Short-term borrowing increased by $2.8 million during the period as loan
loan demand outstripped deposit growth. The additional borrowing came
from an increase in customer repurchase agreements of $400 thousand and
by drawing on a new repurchase agreement line with the Federal Home Loan
Mortgage Corp. The Bank also has a short-term borrowing with the Federal
Home Loan Bank of Atlanta for $1.0 million. This amount is unchanged
from 12/31/94.
Long-term borrowing also remained unchanged at $1.0 million.
The funds were borrowed in 1994 to fund a specific loan. This borrowing
is also a secured advance from the Federal Home Loan Bank of Atlanta.
The borrowing matures in August, 1998.
Shareholders' Equity increased in the first six months by $567 thousand,
as a result of $316 thousand in net earnings and a $250 thousand increase
in the market value of the available-for-sale securities portfolio.
RESULTS OF OPERATIONS
The Company recorded net income of $316 thousand, or $.19 per share
for the six months ended June 30, 1995 and $232 thousand, or $.15 per
share, for the three months ended June 30, 1995. These results compare to
net income of $570 thousand, or $.34 per share for the six months ended
June 30, 1994, and $250 thousand, or $.15 per share for the three months
ended June 30, 1994. In 1994, however, no tax expense was recorded since
the company had the benefit of a tax-loss carryforward. The net income for
the first six months of 1995 reflects a tax expense of $166 thousand, $122
thousand of which was recorded in the second quarter. Pre-tax income in
1995's second quarter rose 42% above 1994's second quarter, but due to a
weak first quarter, held down by non-recurring expenses, pre-tax income
for the full six months was down 15%, from $570 thousand in 1994 to
$482 thousand in 1995. Securities gains were $51 thousand in 1995's first
six months, and $68 thousand in the same period in 1994. All of this
this year's gains were taken in the second quarter, compared to
$13 thousand in securities gains take in the second quarter of 1994.
There was no provision for loan losses recorded in the second quarter
of 1995, and $10 thousand recorded in 1994. In the first quarter of 1995,
however, the company recorded a $100 thousand credit to the provision
for loan losses which was offset by a $100 thousand reserve expense for
other real estate owned. There was no effect on net income from the
transaction.
NET INTEREST INCOME
Net interest income for the second quarter of 1995 was $1.37 million,
an increase of 14% over 1994's second quarter net interest income of $1.20
million. Net interest income for the full six months was $2.64 million in 1995,
up from $2.44 million in 1994, and an increase of 8%. Interest income for
the first six months of 1994 included $81 thousand of interest collected that
had been charged-off in prior years, as compared to only $25 thousand in 1995.
The Bank's net interest margin during the first six months of 1995 was 4.43%,
compared to 4.08% in 1994. For the three months it also increased from
4.25% in 1994 to 4.44% in 1995. The net yield, or interest income as a % of
earning assets, increased to 5.29% in the first six months of 1995, compared
to 4.76% in the first six months of 1994. The superior performance in 1995 was
a result of a larger portion of the Bank's earning assets in loans which
yield more than investment securities or federal funds sold. The percentage
of earning assets in loans increased from 54% in 1994 to 71% in 1995. The
Bank also benefited from
a large number of floating rate loans tied to the prime rate which
rose 250 basis points from early 1994 to 1995. Overall, during the first six
months of 1995 the yield on earning assets increased from 7.4% in 1994 to
8.92% in 1995, an increase of 143 basis points, but the rate paid on interest
bearing liabilities increased by only 108 basis points from 3.41% to 4.49%.
For the three month period the yield on earning assets increased from 7.61%
to 9.07%, and the rate paid on interest-bearing liabilities increased from
3.36% to 4.63%. The increase in the rate paid on interest-bearing liabilities
was reflected in the 107 basis point rise in CD yields in the three month
period and 98 basis points for the full six months, compared to 1994. Money
market deposit rates also increased by 86 basis points for the three months
and 74 basis points for the six months, compared to 1994.
PROVISION FOR LOAN LOSSES
The Bank maintains an allowance for loan losses to absorb losses which
could occur in the loan portfolio. The provision for loan losses is a
charge to earnings to maintain the allowance at an adequate level. On
a quarterly basis, management conducts a thorough review of the loan
portfolio, evaluating factors such as historical loss experience,
historical delinquency, portfolio trends in composition, collateral and
industry concentrations, peer bank loss and delinquency experience, credit
commitments, economic trends, effectiveness of loan policies and procedures,
and an individual analysis of loans classified as Substandard and
Doubtful to determine probability of loss based on collateral,
restructuring and alternative repayment sources. Between reviews, events
may occur which dictate immediate adjustments to the allowance, and these
are addressed as required.
During the first quarter of 1995, management recorded a negative
provision to the Allowance for Loan Loss Reserve of $100 thousand. This
was a transfer of reserves from the Allowance for Loan Losses to establish a
reserve against other real estate owned assets of the Bank. Bank accounting
rules recommend the establishment of a reserve against other real estate
owned assets. The transfer from the allowance for loan loss reserve is
possible because internal and external analysis
indicates that the Bank has excess reserves against its loan portfolio. The
Bank also had $24 thousand of recoveries added to the Loan Loss
Reserve in the first six months of 1995 and $11 thousand of charge-offs
reducing the Reserve.
Other real estate owned declined from a 12/31/94 balance of
$1.30 million to $1.0 million at 6/30/95 as a result of the sale of one
of the four properties. At the time of the sale, $15 thousand was charged
against the other real estate reserve reducing it to $85 thousand at
the end of June.
At 6/30/95, the Allowance for Loan Losses was $945 thousand, or 1.1%
of loans, compared to $1.085 million at 6/30/94, representing 2.1% of loans
outstanding. The Allowance at year-end 1994 was $1.031 million, or 1.6%.
Credit quality continues to improve at the Bank reflected in a decline
in past-due credits. At June 30, 1995 the Bank had only $8 thousand of
loans past due for 30-89 days. This is a significant drop from the $413
thousand of similar category loans at June 30, 1994, and a drop from $257
thousand reported at the end of 1994. There were only $4 thousand of loans
past-due 90 days or more at 6/30/95. There were none at 6/30/94 or 12/31/94.
Non-accrual loans totaled $983 thousand at June 30, 1995. This was
a drop from $1.0 million at the end of 1994. It is also a reduction from
the $1.4 million of non-accrual loans reported at 6/30/94. Loans secured
by real estate account for $719 thousand of the total non-accrual loans at
June 30, 1995. The remaining loans are commercial loans of $264
thousand, of which $235 thousand of the total is guaranteed by the Small
Business Administration.
NON-INTEREST INCOME
Non-interest income for the first six months of 1995 was $377 thousand,
a decrease of $37 thousand from 1994. For the three month period, though,
non-interest income was up $24 thousand to $233 thousand from $199
thousand in 1994.Securities gains in the second quarter were $51 thousand
compared to $13 thousand in 1994's second quarter, but for the six months
securities gains were $51 thousand in 1995 and $68 thousand in 1994. Service
charges on deposit accounts were down compared to 1994 in both the three
month and six month periods. This was a result of an increase in the earnings
credit on available balances given to corporate customers. The earnings credit
is used to offset bank deposit charges. The rate is based on the three month
treasury bill rate which has increased substantially between early 1994
and 1995.
NON-INTEREST EXPENSE
Non-interest expense for the first six months of 1995 was $2.64 million,
up 19% from 1994's first six months total of $2.21 million. $100 thousand
of this increase was related to the OREO reserve transfer, offset by a credit
to the loan loss provision for the same amount. Salaries and benefits
increased $144 thousand as
as the bank added lending officers, branch staff, and one senior
retail officer. There were also approximately $30 thousand of non-recurring
expenses due to severance payments occurring in the first quarter of 1995.
Occupancy and Equipment rose 24% from $423 thousand for the first six
months in 1994 to $525 thousand for the first six months of 1995. For the
three month period occupancy and equipment expense increased from
$211 thousand to $284 thousand. These increases were due to opening a
new branch in Gaithersburg, moving our Wheaton branch to a larger site,
and communication and computer equipment purchased in the Bank's
conversion to a new computer system in late 1994.
Other expenses increased by $57 thousand for the six months, but for
the three month period was $14 thousand lower. The increase for the six
month period reflects some non-recurring expenses incurred in the first
quarter of 1995 relating to consulting and ATM expenses incurred as a
result of the computer conversion. Otherwise, increases in advertising,
courier expense, and data processing were offset by decreases in loan
collection expenses and FDIC insurance.
INCOME TAXES
In the first six months of 1995 the Company recorded a tax expense of
$166 thousand compared to zero in 1994. In 1994 the Company benefited
from a net federal operating loss carryforward and did not record any tax
expense. In late 1994, the Company was required by Financial Accounting
Standard(FAS) 109 to record a tax benefit to recognize the future effects of
the Company's deferred tax assets including the tax loss carryforward. This
tax benefit is required if the Company's current and expected earnings will
allow the Company to realize its deferred tax benefits in the future.
FAS 109 requires that all of this future benefit be recognized immediately.
The result of this tax accounting adjustment is that the Company
will record income tax expense at full current corporate federal and
state tax rates going forward.
CAPITAL REQUIREMENTS
Risk based capital requirements require banks and bank holding
companies to maintain minimum ratios of capital to risk-weighted assets
and off-balance sheet credit arrangements. Total capital is classified into
two tiers, referred to as Tier 1 and Tier 2. The Bank's Tier 1 capital is
composed of common stockholders' equity, while Tier 2 capital is composed
of the qualifying portion of the allowance for loan and lease losses. For
bank holding companies with consolidated assets of less than $150 million,
the risk-based capital guidelines generally are applied on a bank-only
basis.
The regulatory minimums for the Bank's Tier 1 risk-based capital
ratio and total risk-based capital ratios are 4.0% and 8.0% respectively.
At June 30, 1995, the Bank was well in excess of regulatory minimums
with the Tier 1 ratio at 12.05% and the total risk-based capital ratio
at 13.30%. At June 30, 1994 the ratios were 16.7% and 17.9%. The
decrease reflects the loan growth that the Bank has experienced during
the last year.
The Bank's capital leverage ratio, another regulatory measure, is
Tier 1 capital divided by average total assets. The regulatory minimum for
certain institutions is 3.0%, with most institutions required to maintain a
ratio of at least 4.0% to 5.0%, depending upon risk profiles and other
factors. At June 30, 1995, the Bank's capital leverage ratio was 9.6%
compared to 9.0% at June 30, 1994. The increase reflects the Bank's
capital accumulating faster than asset growth. Apart from strong earnings,
the Bank's available-for-sale unrealized losses decreased substantially,
therefore increasing the Bank's capital.
LIQUIDITY AND INTEREST RATE SENSITIVITY
Liquidity is a measure of the Bank's ability to generate and maintain
sufficient cash flows to fund operations and to meet financial obligations
to depositors and borrowers promptly and in a cost-effective manner. The
Bank's liquidity is provided by amortizing and maturing loans, maturities
and paydowns of investment securities, securities and loans that can serve
as collateral for borrowing, federal funds sold and readily marketable
investment securities. Deposit growth and earnings also contribute to the
Bank's liquidity. In the event necessary, the Parent Company may sell
securities from its available for sale portfolio to fund its own
liquidity needs.
The Bank's liquidity sources and needs are measured on a monthly basis
and forecast six months. The analysis includes a review of current and
future loan demand, and anticipated deposit growth or contraction. At
June 30, 1995 the Bank's liquidity sources were 1.9 times anticipated
liquidity needs, which is in excess of the established management
guidelines of 1.3 times anticipated liquidity needs.
Because of the significant impact interest rate fluctuations may have
on the Bank's performance, management continually monitors the interest
rate sensitivity of its assets and liabilities. The common measurement
term is "gap", which refers to the relationship of earning assets to
interest-bearing liabilities within the time period in which they will
mature or reprice. A positive gap, wherein earning assets exceed interest-
bearing liabilities, positions the Bank to respond to rising interest
rates. A negative gap, wherein interest-bearing liabilities exceed earning
assets, positions the Bank to respond to declining interest rates.
Management strives to forecast far enough into the future so they
can fine-tune the earning assets and liabilities to respond to changes
in rates. As a guide, management tries to maintain a gap not greater than
15%, either positive or negative, for the various periods measured.
At June 30, 1995 the Bank had a cumulative negative gap out to one year
of 4.75% of earning assets.
<TABLE>
<CAPTION>
The following table presents the Bank's gap measurements as of
June 30, 1995.
0-3 3-6 6-12
MONTHS MONTHS MONTHS 1-5 YRS. 5 YEARS
RATE SENSITIVE
ASSETS
<S> <C> <C> <C> <C> <C>
Investment Securities 7,315 1,761 1,247 8,724 5,790
Loans 51,236 1,646 1,937 20,904 7,783
Federal Funds Sold 651
------- ------- ------- ------- -------
TOTAL 59,202 3,407 3,184 29,628 13,573
RATE SENSITIVE
LIABILITIES
NOW Accounts 8,453
Money Market Accts 33,211
Certificate of Deposits 6,726 3,639 16,581 13,375 206
Other Borrowing 2,767 1,000
------- ------- ------- ------- -------
51,157 3,689 16,581 14,375 206
----------------------------------------------------------------------------
Cumulative Gap 8,045 7,813 (5,584) 9,669 23,036
=============================================
Ratio of cumulative gap to
earning assets 6.84% 6.64% -4.75% 8.22% 19.58%
</TABLE>
PART II
OTHER INFORMATION
Items 1 through 6(b)
Management notes that no occurrences have taken place during the reporting
period which require disclosure under any of the captioned headings.
<PAGE>
ALLEGIANCE BANC CORPORATION
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.
Allegiance Banc Corporation
(Registrant)
DATE: August 15, 1995 BY: STEPHEH C. JONES
Stephen C. Jones , Controller
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 9
<S> <C>
<FISCAL-YEAR-END> DEC-12-1995
<PERIOD-START> JAN-01-1995
<PERIOD-END> JUN-30-1995
<CASH> 5159000
<INT-BEARING-DEPOSITS> 81912000
<FED-FUNDS-SOLD> 0
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 7383000
<INVESTMENTS-CARRYING> 18559000
<INVESTMENTS-MARKET> 17897000
<LOANS> 83598000
<ALLOWANCE> 945000
<TOTAL-ASSETS> 118310000
<DEPOSITS> 101524000
<SHORT-TERM> 4206000
<LIABILITIES-OTHER> 435000
<LONG-TERM> 1000000
<COMMON> 12336000
0
0
<OTHER-SE> (1191000)
<TOTAL-LIABILITIES-AND-EQUITY> 118310000
<INTEREST-LOAN> 3569000
<INTEREST-INVEST> 830000
<INTEREST-OTHER> 63000
<INTEREST-TOTAL> 4462000
<INTEREST-DEPOSIT> 1717000
<INTEREST-EXPENSE> 1818000
<INTEREST-INCOME-NET> 2644000
<LOAN-LOSSES> (100000)
<SECURITIES-GAINS> 51000
<EXPENSE-OTHER> 2639000
<INCOME-PRETAX> 482000
<INCOME-PRE-EXTRAORDINARY> 482000
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 316000
<EPS-PRIMARY> .19
<EPS-DILUTED> .19
<YIELD-ACTUAL> 5.29
<LOANS-NON> 983000
<LOANS-PAST> 4000
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 1031000
<CHARGE-OFFS> 11000
<RECOVERIES> 24000
<ALLOWANCE-CLOSE> 945000
<ALLOWANCE-DOMESTIC> 945000
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 451000
</TABLE>
