<PAGE>
U. S. SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 10-QSB
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the Quarterly Period Ended . . . June 30, 1995
OR
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d)
OF THE EXCHANGE ACT
Commission file number . . . . 33-14610
TARA BANKSHARES CORPORATION
GEORGIA 58-1736696
6375 Highway 85, P.O. Box 775
Riverdale, Georgia 30274
Issuer's telephone number, including area code: (770) 996-8272
--------------
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.
YES [X] NO [ ]
At August 10, 1995, there were 448,003 shares of the registrant's Common
Stock, $10.00 par value, outstanding.
1 of 12
<PAGE>
TARA BANKSHARES CORPORATION
AND SUBSIDIARY
FORM 10-QSB
Index
PART I. FINANCIAL INFORMATION
<TABLE>
<CAPTION>
PAGE NO.
--------
<S> <C>
Item 1. Consolidated balance sheets................. 3
Consolidated statements of operations....... 4
Consolidated statements of cash flows....... 5
Notes to consolidated financial statements.. 6
Item 2. Management's discussion and analysis or
plan of operation........................... 7
PART II. OTHER INFORMATION
Item 4. Submission of Matters to a Vote of Security
Holders..................................... 11
Item 6. Exhibits and Reports on Form 8-K............ 11
Signatures............................................ 12
</TABLE>
2 of 12
<PAGE>
PART I. FINANCIAL INFORMATION
ITEM 1. TARA BANKSHARES CORPORATION AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
June 30, 1995 and December 31, 1994
(unaudited)
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1995 1994
----------- ----------
<S> <C> <C>
ASSETS
Cash and due from banks $ 2,482,988 1,811,144
Federal funds sold 2,610,000 2,720,000
Securities available-for-sale, at fair value 9,919,768 10,404,340
Securities held-to-maturity, at
cost (approximate fair value of $8,726,869
and $3,060,262, respectively) 8,689,072 3,183,693
Loans 32,246,056 34,075,994
Less allowance for loan losses 1,297,515 1,281,947
----------- ----------
Loans, net 30,948,541 32,794,047
----------- ----------
Premises and equipment, net 2,102,995 2,157,333
Other assets 999,876 1,276,569
----------- ----------
Total assets $57,753,240 54,347,126
=========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Demand deposits:
Noninterest-bearing $11,609,898 10,614,675
Interest-bearing 11,669,449 13,082,705
Savings deposits 2,665,504 2,749,428
Certificates of deposit, $100,000 and over 7,460,070 4,704,893
Certificates of deposit, other 19,039,559 18,427,579
----------- ----------
Total deposits 52,444,480 49,579,280
Subordinated convertible debentures 1,500,000 1,500,000
Other liabilities 322,004 281,722
----------- ----------
Total liabilities 54,266,484 51,361,002
----------- ----------
Stockholders' equity:
Common stock, $10 par value, authorized
2,000,000 shares; issued and outstanding
448,003 shares 4,480,030 4,480,030
Additional paid-in capital 2,663,598 2,663,598
Accumulated deficit (3,404,595) (3,743,932)
Net unrealized losses on
securities available-for-sale (252,277) (413,572)
----------- ----------
Total stockholders' equity 3,486,756 2,986,124
----------- ----------
Total liabilities and
stockholders' equity $57,753,240 54,347,126
=========== ==========
</TABLE>
See accompanying notes to consolidated financial statements.
3 of 12
<PAGE>
TARA BANKSHARES CORPORATION AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
<TABLE>
<CAPTION>
SIX MONTHS ENDED THREE MONTHS ENDED
JUNE 30 JUNE 30
1995 1994 1995 1994
----------- --------- --------- -------
<S> <C> <C> <C> <C>
Interest income:
Loans, including fees $ 1,691,921 1,495,130 828,064 774,599
Federal funds sold 75,022 43,972 53,706 22,250
Interest-bearing deposits in other
financial institutions - 1,798 - 808
Securities - taxable 477,461 377,387 247,455 188,940
----------- --------- --------- -------
Total interest income 2,244,404 1,918,287 1,129,225 986,597
----------- --------- --------- -------
Interest expense:
Deposits 854,216 687,478 461,633 331,935
Federal funds purchased 482 - - -
Securities sold under agreements
to repurchase - 24,575 - 12,332
Subordinated convertible debentures 81,796 62,259 42,049 31,765
----------- --------- --------- -------
Total interest expense 936,494 774,312 503,682 376,032
----------- --------- --------- -------
Net interest income 1,307,910 1,143,975 625,543 610,565
----------- --------- --------- -------
Provision for loan losses - - - -
----------- --------- --------- -------
Net interest income after provision
for loan losses 1,307,910 1,143,975 625,543 610,565
----------- --------- --------- -------
Other Income:
Service charges on deposit accounts 205,155 264,531 99,915 142,033
Insurance commissions 1,858 1,820 341 -
Net gains on sales of securities - 31,140 - (182)
Other operating income 39,931 56,888 18,133 24,130
----------- --------- --------- -------
Total other income 246,944 354,379 118,389 165,981
----------- --------- --------- -------
Other expenses:
Salaries and employee benefits 521,426 655,428 253,596 324,118
Net occupancy 94,726 99,740 46,860 52,347
Furniture and equipment 79,148 81,676 41,675 32,767
Other operating expenses 520,217 575,921 248,887 281,595
----------- --------- --------- -------
Total other expenses 1,215,517 1,412,765 591,018 690,827
----------- --------- --------- -------
Net income $ 339,337 85,589 152,914 85,719
=========== ========= ========= =======
Net income per share based on average
outstanding shares of 448,003 and $0.76 0.19 0.34 0.19
=========== ========= ========= =======
diluted shares of 698,003 $0.60 0.21 0.28 0.17
</TABLE>
See accompanying notes to consolidated financial statements.
4 of 12
<PAGE>
TARA BANKSHARES CORPORATION AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS
Six months ended June 30, 1995 and 1994
(unaudited)
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1995 1994
----------- ----------
<S> <C> <C>
Cash flows from operating activities:
Net income $ 339,337 85,589
Adjustments to reconcile net
income to net cash provided by
operating activities:
Depreciation 75,813 84,217
Amortization and (accretion), net - 4,116
Deferred income tax benefit - (1,904)
Securities transactions, net - (31,140)
Provision for other real estate losses 55,000 139,500
Changes in other assets and liabilities:
Increase in other assets (61,307) (32,700)
Increase in other liabilities 40,282 109,500
----------- ----------
Total adjustments 109,788 271,589
----------- ----------
Net cash provided by operating activities 449,125 357,178
----------- ----------
Cash flows from investing activities:
Purchases of securities available-for-sale - (8,737,174)
Proceeds from sales of securities
available-for-sale - 8,270,732
Proceeds from maturities of
securities available-for-sale 645,897 2,127,720
Purchases of securities held-to-maturity (6,126,563) (1,801,890)
Proceeds from maturities of
securities held-to-maturity 621,153 -
Net decrease in loans 1,785,507 261,076
Purchases of premises and equipment (21,475) (59,335)
Proceeds from sales of other real estate 343,000 187,659
----------- ----------
Net cash provided by (used
in) investing activities (2,752,481) 248,788
----------- ----------
Cash flows from financing activities:
Net increase (decrease) in demand
deposits and savings accounts (501,957) 555,199
Net increase (decrease) in
certificates of deposit 3,367,157 (1,897,523)
Net increase in securities sold
under agreements to repurchase - 10,000
Proceeds from subordinated
convertible debentures - 5,388
----------- ----------
Net cash used in financing activities 2,865,200 (1,326,936)
----------- ----------
Net increase (decrease) in
cash and cash equivalents 561,844 (720,970)
Cash and cash equivalents at beginning
of period 4,531,144 5,367,439
----------- ----------
Cash and cash equivalents at end of period $ 5,092,988 4,646,469
=========== ==========
Supplemental disclosures of cash
paid during the period for:
Interest, net of amounts capitalized $ 893,059 767,243
=========== ==========
Income taxes $ - -
=========== ==========
Supplemental information on non
cash investing activities:
Unrealized (gains) losses on securities
available-for-sale $ 161,295 (326,563)
=========== ==========
Other real estate obtained through
foreclosure $ 60,000 115,000
=========== ==========
</TABLE>
See accompanying notes to consolidated financial statements.
5 of 12
<PAGE>
TARA BANKSHARES CORPORATION AND SUBSIDIARY
Notes to Consolidated Financial Statements
June 30, 1995 and 1994
(Unaudited)
(1) MANAGEMENT'S OPINION
The accompanying consolidated financial statements reflect the accounts of
Tara Bankshares Corporation ("Company") and its wholly-owned subsidiary, Tara
State Bank ("Bank"). The financial statements for June 30, 1995 and 1994 are
unaudited; however, in the opinion of management, all adjustments, consisting of
normal accruals, necessary for a fair presentation of the financial position,
results of operations, and cash flows for the three- and six-month periods then
ended have been included.
(2) ADOPTION OF NEW ACCOUNTING PRINCIPLES
On January 1, 1995, the Company adopted Statements of Financial Accounting
Standard ("SFAS) No.114, "Accounting by Creditors for Impairement of a Loan" and
No.118, "Accounting by Creditors for Impairment of a Loan - Income Recognition
and Disclosures." SFAS No.114 generally requires impaired loans to be measured
on the present value of expected future cash flows discounted at the loan's
effective interest rate, at the loan's observable market price or at the fair
value of the collateral if the loan is collateral dependent. A loan is impaired
when it is probable the creditor will be unable to collect all contractual
principal and interest payments due in accordance with terms of the loan
agreement. The adoption of these statements did not have a material effect on
the Company's consolidated financial statements.
6 of 12
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN
OF OPERATION FOR THE THREE AND SIX-MONTH PERIODS ENDED
JUNE 30, 1995 AND 1994
--------------------------------------------------------
The following is a discussion of the Company's financial condition at June
30, 1995 compared to December 31, 1994, and the results of its operations for
the three- and six-month periods ended June 30, 1995 compared to the three-and
six-month periods ended June 30, 1994. These comments should be read in
conjunction with the financial statements and related notes appearing
elsewhere in this report.
FINANCIAL CONDITION
During the first six months of 1995, total assets increased $3,406,114 or
6.27% as compared to amounts at December 31, 1994. The majority of this increase
was in securities held-to-maturity. Deposits increased and loan demand decreased
causing more securities to be purchased.
During the first six months of 1995, other assets decreased $276,693 or
21.67% as compared to amounts at December 31, 1994. The majority of this
decrease was in other real estate which decreased $338,000 which was offset by
an increase in interest earned but not collected on loans and current prepaid
items of FDIC Assessment and insurance.
As of June 30, 1995, deposits increased $2,865,200 or 5.78% as compared to
December 31, 1994. Noninterest-bearing deposits increased $995,223 and
interest-bearing deposits increased $1,869,977. The increase was due to the
planned introduction of image statements and bonus banking and a special rate
certificate of deposit. Included in the interest-bearing deposits were
certificates of deposit of $100,000 or more totaling $7,460,070.
LIQUIDITY
Liquidity, as defined by net cash, short-term investments and other
marketable assets as a percent of deposits was 43.63% at June 30, 1995. The
federal funds sold position, investment securities portfolio, federal funds
lines with correspondent banks, and loan repayments should provide liquidity
as deposits mature. Management believes the ratio is adequate in the event of
a deposit decline. Management knows of no demands, commitments, or events that
will result in or that are reasonably likely to result in the Company's
liquidity increasing or decreasing in any material way.
The following summarizes the interest sensitivity position of the Company
at June 30, 1995:
<TABLE>
<CAPTION>
TIME HORIZON
--------------------------------------------------------------------
3 MONTHS 12 MONTHS 24 MONTHS 36 MONTHS
-------- --------- --------- ---------
(AMOUNTS IN THOUSANDS)
----------------------
<S> <C> <C> <C> <C>
Interest sensitive assets $25,569 36,154 42,958 46,087
Interest sensitive liabilities 19,071 36,296 38,421 39,143
------- ------ ------ ------
Assets less liabilities $ 6,498 (142) 4,537 6,944
======= ====== ====== ======
Ratio 1.34 1.00 1.12 1.18
==== ==== ==== ====
</TABLE>
7 of 12
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN
OF OPERATION, CONTINUED
If interest rates rise, the ratios indicate that profits may be positively
impacted. If interest rates were to fall sharply, the ratios indicate that
profits may be negatively impacted. Management is monitoring this position and
is making more fixed-rate loans for periods up to one year rather than
variable-rate loans to further reduce the asset sensitivity so that earnings
fluctuations are less susceptible to increases or decreases in interest rates.
CAPITAL RESOURCES
With operating profits and unrealized losses on investment securities, the
Company's capital ratios have improved, as measured by its average stockholders'
equity to average assets ratio which was 5.77% and 5.60% for the quarters ended
June 30, 1995 and 1994, respectively, and its ratio of stockholders' equity to
assets which was 6.04% and 5.50% at June 30, 1995 and December 31, 1994,
respectively.
At June 30, 1995, the Bank's regulatory capital and the required minimum
amounts under existing regulations and the (as later defined) MOU are as
follows:
<TABLE>
<CAPTION>
REQUIRED
REGULATORY MINIMUM
CAPITAL AMOUNT EXCESS
% AMOUNT % AMOUNT % AMOUNT
----- ---------- ---- ------ ----- ------
<S> <C> <C> <C> <C> <C> <C>
CAPITAL
Tier 1 leverage 8.8% 4,967 6.0% 3,394 2.78% 1,573
Tier 1 risk-based 13.9% 4,967 4.0% 1,429 9.90% 3,538
Total risk-based 15.2% 5,424 8.0% 2,859 7.18% 2,565
</TABLE>
Regulatory authorities have proposed an interest rate risk component to
minimum required regulatory capital which has not yet been finalized. Such
requirement, if implemented, will likely increase the level of minimum required
regulatory capital in the future. The effects to the Company for such an
increase are not presently determinable.
On March 27, 1992, the Bank entered into the terms of a Memorandum of
Understanding (the "MOU") with the Federal Deposit Insurance Corporation to take
certain corrective actions, which if not performed could result in further
regulatory sanctions. The MOU was modified on December 1, 1993. The MOU as
modified requires the maintenance of a Tier 1 capital to average quarterly
assets ratio of at least 6%; restriction of dividend payments by the Bank to the
Company without prior regulatory approval; the establishment and maintenance of
certain liquidity guidelines; revised requirements to reduce classified assets;
the establishment and maintenance of an allowance for loan losses based on
certain minimum guidelines; and restrictions on lending to borrowers with
classified loans. These actions relate to the review, evaluation, and
designation of certain lending, management, and operational functions.
At June 30, 1995, the Company believes it was in compliance with the
requirements as defined in the MOU and its subsidiary, the Bank, meets the
minimum Tier 1 capital requirement as defined in the MOU. The Bank's leverage
ratio was 8.8%, Tier 1 risk-based ratio was 13.9%, total risk-based ratio was
15.2%, based on leverage capital of $4,967,000, Tier 1 capital of $4,967,000,
total risk-based capital of $5,424,000, as defined.
8 of 12
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN
OF OPERATION, CONTINUED
At this time, the financial impact, if any, of regulatory actions that may
result from any future noncompliance with the requirements of the MOU cannot be
determined. Accordingly, the accompanying consolidated financial statements do
not include any adjustments that might result from these uncertainties.
All capital expenditures planned for 1995 should be only for renovation and
equipment purchases for the conversion to out source data processing.
RESULTS OF OPERATIONS
The following highlights some of the more significant fluctuations during
the three- and six-month periods ended June 30, 1995 as compared to the
comparable period in 1994.
INTEREST INCOME
Total interest income for the three- and six-month periods ended June 30,
1995 increased $142,628 or 14.46% and $326,117 or 17.00% from the comparable
periods in 1994. Decreased volume of average interest-earning assets accounted
for $13,446 of the change in interest income in the three-month period and
$68,679 in the six-month period, while increased rates on these assets accounted
for $156,074 of the change in interest income in the three-month period and
$394,796 in the six-month period.
INTEREST EXPENSE
Total interest expense for the three- and six-month periods ended June 30,
1995 increased $127,650 or 33.95% and $162,182 or 20.95% respectively from the
comparable periods in 1995. Decreased volume of average interest-bearing
liabilities accounted for $3,730 of the change in interest expense in the three-
month period and $47,848 in the six-month period, while increased rates paid on
these average interest-bearing liabilities accounted for $131,380 of the change
in the three-month period and $190,493 in the six-month period.
NET INTEREST INCOME
Net interest income for the three and six-month periods ended June 30, 1995
increased $14,978 or 2.45% and $163,935 or 14.33% from the comparable periods in
1994. Decreased volume accounted for $9,716 of the change in net interest income
for the three-month period and $20,831 for the six-month period, while increased
rates accounted for $24,694 of the change in net interest income for the three-
month period and $204,303 for the six-month period. The interest margin of 5.38%
and rate spread relationship of 4.50% for 1995 have increased. The change in net
interest margin was due in large part to the increase in the interest rates on
interest-bearing assets during the first six months of 1995.
ASSET QUALITY
The provision for loan losses is the charge to operating earnings that
management feels is necessary to maintain an adequate allowance for loan losses.
It is based on the growth of the loan portfolio, the amount of net loan losses
incurred, and management's estimate of potential future loan losses based on an
evaluation of loan portfolio risks and certain economic factors. No provision
for loan losses was recorded for the three-and six-month periods ended June 30,
1995 and 1994. No provision was necessary due to decreases in the loan portfolio
in 1995 and reduced loan charge offs. Net charge-offs of loans for the three-
month and six-month periods ended June 30, 1995 amounted to $3,655 and ($19,225)
compared to $144,304 and $205,401 for the comparable periods in 1994.
9 of 12
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION, CONTINUED
The following table summarizes nonperforming loans and allowance for loan losses
data as of June 30, 1995 and December 31, 1994:
<TABLE>
<CAPTION>
JUNE, 1995 DECEMBER, 1994
---------- --------------
<S> <C> <C>
Nonaccrual loans $ 706,844 $374,448
Past-due loans greater than 90 days - 7,433
Restructured loans 726,000 448,000
---------- --------
Total nonperforming loans $1,432,844 $829,881
========== ========
Potential problem loans $ 315,110 $ 81,809
========== ========
Nonperforming loans/total loans 4.44% 2.44%
Nonperforming loans/allowance
for loan losses 110.43% 64.74%
Allowance for loan losses/total
loans 4.02% 3.76%
</TABLE>
The increase in nonaccrual loans is primarily due to management's
continuing efforts to identify, monitor, and work out problem loans before they
become a loss. The nonaccrual loans should be restructured in the third quarter.
Restructured loans increased due to the workout of certain credits.
The potential problem loans represent loans that are presently performing;
however, management has serious doubts concerning the ability of the respective
borrowers to meet contractual repayment terms. The increase in the potential
problem loans was a result of one large credit becoming delinquent.
OTHER INCOME
Other income decreased $47,592 or 28.67% and $107,435 or 30.32% for the
three and six-month periods ended June 30, 1995 from the comparable periods in
1994. Service charges as a result of a reduction in deposits, a reduction of
overdrafts, and fewer insufficient funds charges accounted for the majority of
the change in other income for the three-and six-month periods, respectively,
from the comparable periods in 1994. The gain in securities in 1994 was the
result of management's repositioning the portfolio in light of rising rates.
OTHER EXPENSES
Other expenses for the three- and six-month periods ended June 30, 1995
decreased $99,809 or 14.45% and $197,248 or 13.96% from the comparable periods
in 1994. Lower salaries and employee benefits as a result of a reduction in
personnel accounted for a decrease of $70,522 and $134,002 for the three- and
six-month periods.
NET INCOME
Net income for the three- and six-month periods ended June 30, 1995
increased $67,195 and $253,748 from the comparable periods in 1994. The increase
is the result of a decrease in salaries and employee benefits and an increase in
net interest income.
10 of 12
<PAGE>
PART II. OTHER INFORMATION
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
The Company's annual stockholders' meeting was held on May 17, 1995. Notice
of the meeting was mailed on March 31, 1995 to each stockholder of record as of
March 31, 1995. A motion was approved to elect eight Board of Directors to serve
one-year terms until the annual meeting of shareholders in 1996 consisting of
James L. Askew, James W. Babb, Jr., Charles M. Barnes, Jimmy W. Benefield, C.
Wallace Carrouth, George E. Glaze, Sanford E. Gruskin, and A. Gene Lee. The
motion was approved by 296,488 shares voted by proxy and 22,788 shares voted in
person. There were 280 shares voted negative in person. No other matters were
voted upon at the meeting.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K.
(a) Exhibits filed in accordance with Item 601 of Regulation S-B.
10.1 Memorandum of Understanding dated March 27, 1992, incorporated by
reference to same exhibit in Registrant's Form 10-KSB for period
ended December 31, 1992, as filed with the Commission.
10.2 Revised Memorandum of Understanding dated December 1, 1993,
incorporated by reference to the same exhibit in Registrant's Form 10-
KSB for period ended December 31, 1993, as filed with the Commission.
27 Financial Data Schedule.
(b) The Company has not filed any reports on Form 8-K with the Securities and
Exchange Commission during the three months ended June 30, 1995.
11 of 12
<PAGE>
SIGNATURES
In accordance with the requirements of the Exchange Act, the registrant caused
this report to be signed on its behalf by the undersigned, thereunto duly
authorized.
TARA BANKSHARES CORPORATION
Date: 8/10/95 /s/ Chuck M. Barnes
---------- ---------------------------------------
Chuck M. Barnes, President
(Chief Executive Officer)
Date: 8/10/95 /s/ Steve T. Warren
---------- ---------------------------------------
Steve T. Warren, Senior Vice President
(Chief Financial and Accounting Officer)
12 of 12
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 9
<S> <C> <C>
<PERIOD-TYPE> 6-MOS 6-MOS
<FISCAL-YEAR-END> DEC-31-1995 DEC-31-1994
<PERIOD-START> JAN-01-1995 JAN-01-1994
<PERIOD-END> JUN-30-1995 JUN-30-1994
<CASH> 2,482,988 1,906,469
<INT-BEARING-DEPOSITS> 0 0
<FED-FUNDS-SOLD> 2,610,000 2,740,000
<TRADING-ASSETS> 0 0
<INVESTMENTS-HELD-FOR-SALE> 9,919,768 12,015,033
<INVESTMENTS-CARRYING> 8,689,072 1,742,627
<INVESTMENTS-MARKET> 8,726,869 1,735,134
<LOANS> 32,246,056 35,007,952
<ALLOWANCE> 1,297,515 1,282,943
<TOTAL-ASSETS> 57,753,240 55,764,176
<DEPOSITS> 52,444,480 49,999,387
<SHORT-TERM> 0 0
<LIABILITIES-OTHER> 322,004 1,219,437
<LONG-TERM> 1,500,000 1,500,000
<COMMON> 4,480,030 4,480,030
0 0
0 0
<OTHER-SE> (993,274) (1,434,678)
<TOTAL-LIABILITIES-AND-EQUITY> 57,753,240 55,764,176
<INTEREST-LOAN> 1,691,921 1,495,130
<INTEREST-INVEST> 552,483 423,157
<INTEREST-OTHER> 0 0
<INTEREST-TOTAL> 2,244,404 1,918,287
<INTEREST-DEPOSIT> 854,216 687,478
<INTEREST-EXPENSE> 936,494 774,312
<INTEREST-INCOME-NET> 1,307,910 1,413,975
<LOAN-LOSSES> 0 0
<SECURITIES-GAINS> 0 31,140
<EXPENSE-OTHER> 1,215,517 1,412,765
<INCOME-PRETAX> 339,337 85,589
<INCOME-PRE-EXTRAORDINARY> 0 0
<EXTRAORDINARY> 0 0
<CHANGES> 0 0
<NET-INCOME> 339,337 85,589
<EPS-PRIMARY> .76 .19
<EPS-DILUTED> .60 .21
<YIELD-ACTUAL> 5.35 4.66
<LOANS-NON> 706,844 703,637
<LOANS-PAST> 0 135,442
<LOANS-TROUBLED> 726,000 808,000
<LOANS-PROBLEM> 315,110 960,204
<ALLOWANCE-OPEN> 1,282,000 1,488,000
<CHARGE-OFFS> 230,000 345,000
<RECOVERIES> 245,000 140,000
<ALLOWANCE-CLOSE> 1,297,000 1,283,000
<ALLOWANCE-DOMESTIC> 0 0
<ALLOWANCE-FOREIGN> 0 0
<ALLOWANCE-UNALLOCATED> 0 0
</TABLE>
