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
SEPTEMBER 30, 1997.
Commission file number: 0-23790
-------
MetroBanCorp
- ----------------------------------------------------------------------
(Exact name of small business issuer as specified in its charter)
Indiana
- ----------------------------------------------------------------------
(State or other jurisdiction of incorporation or organization)
35-1712167
- ----------------------------------------------------------------------
(I.R.S. Employer Identification No.)
10333 N. Meridian Street, Suite 111, Indianapolis, Indiana
- ----------------------------------------------------------------------
(Address of principal executive offices)
46290 (317) 573-2400
- --------------------------- ----------------------------------
(Zip Code) (Issuer's telephone number)
http://www.metb.com
- ----------------------------------------------------------------------
(Issuer's Internet Website Address)
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___
State the number of shares outstanding of each of the issuer's
classes of common equity, as of the latest practicable date:
1,681,291 Shares of Common Stock
- --------------------------------
Transitional Small Business Disclosure Format: Yes___ No X
<PAGE>
MetroBanCorp
FORM 10-QSB
Index
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
Consolidated Statement of Condition
September 30, 1997 and December 31, 1996 3
Consolidated Statement of Operations
Three Months Ended September 30, 1997 and 1996 4
Consolidated Statement of Operations
Nine Months Ended September 30, 1997 and 1996 5
Consolidated Statement of Cash Flows
Nine Months Ended September 30, 1997 and 1996 6
Notes to Consolidated Financial Statements 7
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations 8
PART II. OTHER INFORMATION 13
Item 6. Exhibits and Reports on Form 8-K 13
SIGNATURES 15
EXHIBITS 16
page 2
<PAGE>
<TABLE>
MetroBanCorp
Part I - Financial Information
Item 1. Financial Statements
Consolidated Statement of Condition
(Unaudited)
(dollars in thousands)
<CAPTION>
09/30/97 09/30/96
---------- ----------
<S> <C> <C>
Assets
Cash and Due from Banks $ 7,573 $ 7,475
Federal Funds Sold 4,800 6,300
---------- ----------
Total Cash and Cash Equivalents 12,373 13,775
Investment Securities HTM - at Cost 10,017 10,056
Investment Securities AFS - at Market 18,839 21,160
---------- ----------
Total Investment Securities 28,856 31,216
Loans:
Gross Loans 76,024 65,385
Less: Allowance for Loan Losses (929) (866)
---------- ----------
Loans, Net 75,095 64,519
Premises and Equipment, Net 1,545 1,821
Accrued Interest Receivable 867 871
Core Deposit Intangible, Net 217 322
Deferred Tax Asset 262 360
Other Assets 415 499
---------- ----------
Total Assets $ 119,630 $ 113,383
========== ==========
Liabilities
Deposits:
Non-Interest Bearing Demand $ 21,493 $ 23,141
Interest Bearing:
Savings and NOW Accounts 40,505 35,507
Time Deposits of $100,000 and over 14,280 10,800
Other Time Deposits 29,952 29,836
---------- ----------
Total Deposits 106,230 99,284
Securities Sold Under Agreements to Repurchase - 1,500
Accrued Interest Payable 571 419
Other Liabilities 941 679
---------- ----------
Total Liabilities 107,742 101,882
---------- ----------
Commitments and Contingencies - -
Shareholders' Equity
Preferred Stock: 1,000,000 Shares Authorized;
None Outstanding - -
Common Stock: 3,000,000 Shares Authorized;
1,681,291 Shares Issued and Outstanding 11,210 11,210
Accumulated Earnings 688 407
Net Unrealized Loss on Investment Securities AFS (10) (116)
---------- ----------
Total Shareholders' Equity 11,888 11,501
---------- ----------
Total Liabilities and Shareholders' Equity $ 119,630 $ 113,383
========== ==========
See "Notes to Consolidated Financial Statements"
</TABLE>
page 3
<PAGE>
<TABLE>
MetroBanCorp
Part I - Financial Statements
Consolidated Statement of Operations
(unaudited)
(dollars in thousands, except share data)
<CAPTION>
Three Months Ended
-------------------------
09/30/97 09/30/96
---------- ----------
<S> <C> <C>
Interest Income
Interest and Fees on Loans $ 1,850 $ 1,600
Interest on Investment Securities 392 413
Interest on Federal Funds Sold 29 4
---------- ----------
Total Interest Income 2,271 2,017
Interest Expense
Interest on Deposits 971 882
Other Interest Expense 4 8
---------- ----------
Total Interest Expense 975 890
---------- ----------
Net Interest Income 1,296 1,127
---------- ----------
Provision for Loan Losses 45 16
---------- ----------
Net Interest Income after
Provision for Loan Losses 1,251 1,111
---------- ----------
Non-Interest Income
Service Charges on Deposit Accounts 79 77
Gain on Sale of Investment Securities 1 -
Other Service Charges, Commissions and Fees 136 84
---------- ----------
Total Non-Interest Income 216 161
Non-Interest Expense
Salaries and Employee Benefits 466 403
Occupancy Expense 88 63
Equipment Expense 91 80
Advertising and Public Relations 59 46
Legal, Professional and Audit Services 41 36
Data Processing 69 49
Student Loan Servicing Fees 13 28
FDIC Insurance Assessment 8 105
Amortization of Core Deposit Intangible 35 35
Other 230 190
---------- ----------
Total Non-Interest Expense 1,100 1,035
Income before Income Taxes 367 237
Applicable Income Taxes 150 106
---------- ----------
Net Income $ 217 $ 131
========== ==========
Net Income per Weighted Average Share $ .13 $ .08
Cash Dividend per Share $ .05 $ -
Weighted Average Shares Outstanding 1,681,291 1,681,291
See "Notes to Consolidated Financial Statements"
</TABLE>
page 4
<PAGE>
<TABLE>
MetroBanCorp
Part I - Financial Information
Item 1. Financial Statements
Consolidated Statement of Operations
(unaudited)
(dollars in thousands, except share data)
<CAPTION>
Nine Months Ended
-------------------------
09/30/97 09/30/96
---------- ----------
<S> <C> <C>
Interest Income
Interest and Fees on Loans $ 5,233 $ 4,553
Interest on Investment Securities 1,211 1,193
Interest on Federal Funds Sold 40 102
---------- ----------
Total Interest Income 6,484 5,848
Interest Expense
Interest on Deposits 2,754 2,601
Other Interest Expense 32 18
---------- ----------
Total Interest Expense 2,786 2,619
---------- ----------
Net Interest Income 3,698 3,229
---------- ----------
Provision for Loan Losses 112 49
---------- ----------
Net Interest Income after
Provision for Loan Losses 3,586 3,180
---------- ----------
Non-Interest Income
Service Charges on Deposit Accounts 234 225
Loss on Sale of Investment Securities (15) -
Other Service Charges, Commissions and Fees 432 277
---------- ----------
Total Non-Interest Income 651 502
Non-Interest Expense
Salaries and Employee Benefits 1,388 1,218
Occupancy Expense 247 173
Equipment Expense 272 239
Advertising and Public Relations 178 139
Legal, Professional and Audit Services 135 103
Data Processing 213 169
Student Loan Servicing Fees 56 85
FDIC Insurance Assessment 48 188
Amortization of Core Deposit Intangible 105 105
Other 695 533
---------- ----------
Total Non-Interest Expense 3,337 2,952
Income before Income Taxes 900 730
Applicable Income Taxes 366 326
---------- ----------
Net Income $ 534 $ 404
========== ==========
Net Income per Weighted Average Share $ 0.32 $ 0.24
Cash Dividend per Share $ 0.15 $ 0.10
Weighted Average Shares Outstanding 1,681,291 1,681,291
See "Notes to Consolidated Financial Statements"
</TABLE>
page 5
<PAGE>
<TABLE>
MetroBanCorp
Part I - Financial Information
Item 1. Financial Statements
Consolidated Statement of Cash Flows
(unaudited)
(dollars in thousands)
<CAPTION>
Nine Months Ended
-------------------------
09/30/97 09/30/96
---------- ----------
<S> <C> <C>
Cash Flows from Operating Activities:
Net Income $ 534 404
Adjustments to Reconcile Net Income to Cash
Provided by Operating Activities:
Provision for Loan Losses 112 49
Deferred Income Tax Provision - 2
Depreciation and Amortization 326 292
Gain on Sale of Real Estate (56) (35)
Net Loss on Sale of Securities 15 12
Decrease in Accrued Interest Receivable 4 14
Decrease in Other Assets 84 120
Increase/(Decrease) in Accrued Interest Payable 152 (9)
Increase in Other Liabilities 262 115
---------- ----------
Total Adjustments 899 560
---------- ----------
Net Cash Flows Provided by Operating Activities 1,433 964
---------- ----------
Cash Flows from Investing Activities:
Proceeds from Maturities of Investment
Securities HTM 57 211
Proceeds from Sales of Investment Securities AFS 9,342 3,526
Purchases of Investment Securities AFS (6,861) (4,767)
Proceeds from the Repayment of Student Loans 1,334 1,664
Proceeds from the Sale of Student Loans 3,194 829
Net Loans made to Customers (15,216) (9,385)
Purchases of Premises and Equipment (340) (473)
Proceeds from the Sale of Real Estate 461 409
---------- ----------
Net Cash Flows Used in Investing Activities (8,029) (7,986)
---------- ----------
Cash Flows from Financing Activities:
Net Increase/(Decrease) in DDA, NOW and
Savings Accounts 3,350 (7,065)
Net Increase in Time Deposits 3,596 2,388
Net Increase in Federal Funds Purchased - 1,600
Net Securities Sold Under
Agreements to Repurchase (1,500) (2,400)
Payment of Dividends (252) (168)
---------- ----------
Net Cash Provided by/(Used In)
Financing Activities 5,194 (5,645)
---------- ----------
Net Decrease in Cash and Cash Equivalents (1,402) (12,667)
Cash and Cash Equivalents at Beginning of Period 13,775 18,082
---------- ----------
Cash and Cash Equivalents at End of Period $ 12,373 $ 5,415
========== ==========
See "Notes to Consolidated Financial Statements"
</TABLE>
page 6
<PAGE>
MetroBanCorp
Notes to Consolidated Financial Statements
1. Basis of Presentation
---------------------
The consolidated financial statements include the accounts of
MetroBanCorp and its wholly-owned affiliate, MetroBank (together,
"Metro"). All significant intercompany transactions and balances have
been eliminated.
In the opinion of management of Metro, the consolidated financial
statements contain all the normal and recurring adjustments necessary
to present fairly the consolidated financial condition of Metro as of
September 30, 1997 and December 31, 1996, and the results of its
operations for the three and nine month periods ended September 30,
1997 and 1996 and its statement of cash flows for the nine month
periods ended September 30, 1997 and 1996.
These financial statements should be read in conjunction with Metro's
latest Annual Report on Form 10-KSB for the year ending December 31,
1996.
2. Investments
-----------
The market value and amortized cost of investment securities of Metro
as of September 30, 1997 are set forth below:
<TABLE>
<CAPTION>
Market Value Amortized Cost
-------------- --------------
<S> <C> <C>
Held to Maturity $ 9,758,000 $ 10,017,000
Available for Sale 18,839,000 18,814,000
-------------- --------------
Total Investments $ 28,597,000 $ 28,831,000
============== ==============
</TABLE>
3. Allowance for Loan and Lease Losses
-----------------------------------
Metro adopted the provisions of Statement of Financial Accounting
Standard No. 114,"Accounting by Creditors for Impairment of a Loan",
as amended by Statement of Financial Accounting Standard No. 118, on
January 1, 1995. As of September 30, 1997, Metro had impaired loans
in the total amount of $51,663 in accordance with SFAS Nos. 114 and
118. Of this amount, $41,663 had no related specific allowance. The
remaining impaired loans had a specific allowance of $10,000.
Metro's policy for recognizing income on impaired loans is to accrue
earnings until a loan is classified non-accrual. For loans which
receive the classification of non-accrual during the current period,
interest accrued to date is charged against current earnings. All
payments received on a loan which is classified as non-accrual are
utilized to reduce the principal outstanding balance of the loan.
For the nine months ended September 30, 1997, the average balance of
Metro's impaired loans was $46,133.
page 7
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
------------------------------------------------
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
---------------------------------------------
The following management discussion is presented to provide
information concerning the consolidated financial condition of Metro
as of September 30, 1997 as compared to December 31, 1996, and the
results of operations for the three and nine month periods ending
September 30, 1997 and 1996.
FINANCIAL CONDITION
- -------------------
At September 30, 1997, Metro had total assets of $119.6 million, an
increase of $6.2 million or 5.5 percent from December 31, 1996.
Consolidated earning assets totaled $109.7 million or 91.7 percent of
total assets at September 30, 1997. The principal components of
earning assets were gross loans of $76.0 million, constituting 69.3
percent of total earning assets, investment securities of $28.9
million, constituting 26.3 percent of total earning assets, and
federal funds sold of $4.8 million or 4.4 percent of total earning
assets. Earning assets at December 31, 1996 were $102.9 million or
90.7 percent of total assets.
LOANS
- -----
Total gross loans outstanding increased $10.6 million, or 16.3
percent, from December 31, 1996 to September 30, 1997, due to an
increase in short-term and intermediate-term commercial and
installment loans. The demand for credit financing has been
relatively strong throughout the first three quarters of 1997.
Metro's loan growth is also attributable to the continued business
development efforts of the lending staff and the expanded indirect
lending relationships with home improvement and automobile
dealerships. Growth in Metro's loan portfolio is diversified among
several industry classifications. The following table summarizes the
change in Metro's loan portfolio for the first nine months of 1997:
page 8
<PAGE>
<TABLE>
Loan Portfolio at Period End
(dollars in thousands)
<CAPTION>
Dollar Percent
09/30/97 12/31/96 Change Change
-------- -------- -------- --------
<S> <C> <C> <C> <C>
Commercial $ 47,083 $ 35,064 $ 12,019 34.3%
Real Estate - Construction 3,632 3,970 (338) (8.5%)
Mortgage 652 787 (135) (17.2%)
Installment 19,555 15,933 3,622 22.7%
Student Loans 5,102 9,631 (4,529) (47.0%)
-------- -------- -------- --------
Gross Loans $ 76,024 $ 65,385 $ 10,639 16.3%
-------- -------- -------- --------
Less: Allowance for Loan Losses (929) (866) (63) 7.3%
-------- -------- -------- --------
Net Loans $ 75,095 $ 64,519 $ 10,576 16.4%
======== ======== ======== ========
</TABLE>
Since December 31, 1996, Metro sold $3.2 million, or 33.2 percent, of
its guaranteed student loan portfolio. These student loans were sold
to fund higher yielding commercial and installment loans and to meet
Metro's liquidity needs.
At September 30, 1997, net loans totaled 62.8 percent of total assets,
as compared to 56.9 percent at December 31, 1996. Metro's loan to
deposit ratio, which is one measure of liquidity, was 70.7 percent at
September 30, 1997, as compared to 65.0 percent at December 31, 1996.
Delinquent loans at September 30, 1997 were $769,000, representing
1.01 percent of gross loans. At December 31, 1996, delinquent loans
amounted to $1.3 million or 2.0 percent of gross loans outstanding.
Delinquent loans as of both dates consisted primarily of student loans
guaranteed by USA Funds, Inc., a subsidiary of USA Group, Inc. Non-
accruing loans at September 30, 1997 amounted to $51,663, as compared
to $157,443 at December 31, 1996. Net charged-off loans amounted to
$48,521 for the nine months ending September 30, 1997.
At September 30, 1997 and December 31, 1996, Metro had an allowance
for loan losses of $929,000 and $866,000, respectively. The
percentage of allowance for loan losses to gross loans amounted to
1.22 percent and 1.32 percent at September 30, 1997 and December 31,
1996, respectively. Metro provides for possible loan losses through
regular provisions to the allowance for loan losses. The provisions
are made at a level which is considered necessary by management to
absorb estimated losses in the loan portfolio and is based upon an
assessment of the adequacy of Metro's loan loss reserve account.
page 9
<PAGE>
<TABLE>
Allowance for Loan Losses
Nine Months ended September 30, 1997 and 1996
(dollars in thousands)
<CAPTION>
1997 1996
-------- --------
<S> <C> <C>
Allowance for Loan Losses, January 1 $ 866 $ 910
Loans Charged-Off:
Commercial - (46)
Real Estate - Construction - -
Mortgage - -
Installment (56) (10)
Student Loans - -
-------- --------
Total Charged-Off Loans (56) (56)
-------- --------
Recoveries on Charged-Off Loans:
Commercial 5 5
Real Estate - Construction - -
Mortgage - -
Installment 2 2
Student Loans - -
-------- --------
Total Recoveries 7 7
-------- --------
Net Charged-Off Loans (49) (49)
-------- --------
Provision for Loan Losses 112 49
-------- --------
Allowance for Loan Losses, September 30 $ 929 $ 910
======== ========
Average Loans Outstanding $ 71,748 $ 63,629
======== ========
Net Charged-Off Loans to Average Loans .07% .08%
======== ========
</TABLE>
INVESTMENT SECURITIES
- ---------------------
Total investments at September 30, 1997 were $28.9 million, decreasing
by $2.4 million or 7.6 percent from the total at December 31, 1996.
This decrease is primarily due to principal payments received on
mortgage-backed securities.
page 10
<PAGE>
DEPOSITS
- --------
Total deposits at September 30, 1997 amounted to $106.2 million, in
comparison to $99.3 million at December 31, 1996, representing a
increase of $6.9 million or 7.0 percent. Since December 31, 1996, non-
interest bearing demand deposits decreased by $1.6 million or 7.1
percent. This decrease in demand deposits relates to timing
differences between deposits and withdrawals. Metro historically
experiences a build up of deposits during the fourth quarter of the
year, followed by a decline during the following three quarters. In
the first nine months of 1997, interest bearing deposits increased by
$8.5 million or 11.3 percent.
OTHER LIABILITIES
- -----------------
At September 30, 1997, Metro had a zero balance in securities sold
under agreements to repurchase. This represented a decrease of $1.5
million in short term borrowings since December 31, 1996. Other
liabilities increased by $262,000 to $941,000 at September 30, 1997.
Total liabilities increased by $5.9 million or 5.8 percent to $107.7
million since December 31, 1996.
CAPITAL
- -------
Metro's total capital increased by a net amount of $387,000 or 3.4
percent during the first nine months of 1997. Metro's net income in
the first nine months of 1997 totaled $534,000.
The net unrealized loss on investment securities available for sale
amounted to $10,000 at September 30, 1997, decreasing by $106,000 or
91.4 percent since December 31, 1996. This decrease in the net
unrealized loss is due principally to an increase in the market value
of Metro's investment portfolio.
During 1997, Metro's Board of Directors declared three quarterly cash
dividends of $.05 per common share each. Metro's total cash dividend
payout for the nine month period amounted to $252,000 and were made in
equal quarterly disbursements in the months of March, June and
September of 1997.
Metro is subject to various capital requirements imposed by the
federal banking agencies. Quantitative measures established by
regulation to ensure capital adequacy require Metro to maintain
minimum amounts and ratios of total and Tier 1 capital (as defined in
the regulations) to risk-weighted assets, and Tier 1 capital to
average assets. At September 30, 1997, Metro meets all capital
adequacy requirements to which it is subject. The following table
sets forth the actual and minimum capital amounts and ratios of Metro
and MetroBank as of September 30, 1997 (dollars in thousands):
page 11
<PAGE>
<TABLE>
<CAPTION>
To Be Well Capitalized
Under Prompt Corrective
Actual Action Provisions
------------------- -----------------------
Amount Ratio Amount Ratio
-------- -------- -------- --------
<S> <C> <C> <C> <C>
Total Capital
(to Risk Weighted Assets)
Consolidated $12,687 15.67% > $8,089 > 10.00%
MetroBank $ 9,323 11.60% > $8,026 > 10.00%
Tier 1 Capital
(to Risk Weighted Assets)
Consolidated $11,675 14.43% > $4,853 > 6.00%
MetroBank $ 8,320 10.37% > $4,816 > 6.00%
Tier 1 Capital
(to Average Assets)
Consolidated $11,675 10.56% > $5,527 > 5.00%
MetroBank $ 8,320 7.74% > $5,374 > 5.00%
</TABLE>
At December 31, 1996, the most recent notification from the FDIC
categorized MetroBank as "well capitalized" under its regulatory
framework for prompt corrective action. To be categorized as "well
capitalized", MetroBank must maintain minimum total risk-weighted
capital, Tier 1 capital and leverage ratios as set forth in the table
above. There are no conditions or events since this most recent FDIC
notification that management believes have changed either Metro's or
MetroBank's capital category.
page 12
<PAGE>
RESULTS OF OPERATIONS
NET INTEREST INCOME
- -------------------
Net interest income after provision for loan losses amounted to $3.6
million for the nine months ending September 30, 1997, compared to
$3.2 million for the comparable period of 1996, an increase of 12.8
percent. Net interest income increased principally due to growth in
Metro's loan portfolio for the first nine months of 1997. Metro's
provision for loan loss expense amounted to $112,000 for the nine
month period ending September 30, 1997, compared to $49,000 for the
same period in 1996. The increase in the provision for loan losses
resulted from growth in the installment and commercial loan
categories. Provisions in 1997 are at levels considered necessary by
management to absorb estimated losses in the loan portfolio and is
based upon an assessment of the adequacy of Metro's loan loss reserve
account.
NON-INTEREST EXPENSE
- --------------------
Non-interest expense amounted to $3.3 million for the nine months
ending September 30, 1997, compared to $3.0 million for the same
period in 1996, an increase of $385,000 or 13.0 percent. This
increase is due principally to the recognition of increased overhead
expense incurred with the opening of MetroBank's fifth branch banking
facility and the deployment of four off-site automated teller machines
during the first quarter of 1997.
NET INCOME
- ----------
Metro recognized net income of $534,000 for the nine month period
ending September 30, 1997, compared to $404,000 for the same period
one year earlier, an increase of $130,000 or 32.2 percent.
PART II-OTHER INFORMATION
- -------------------------
Item 6. Exhibits and Reports on Form 8-K
- -----------------------------------------
(a) Exhibits:
Exhibit 10(a) Sublease dated September 11, 1997 between
Registrant and Wal-Mart Stores, Inc. with
respect to property located at Highway 37
and 32, Noblesville, Indiana.
page 13
<PAGE>
Exhibit 10(b) Amendment One to Lease dated September 30,
1997 between Registrant and Phoenix Home
Life Mutual Insurance Company with respect
to property located at 10333 N. Meridian
St. Suite 111, Indianapolis, Indiana.
Exhibit 27 Financial Data Schedule
(b) No reports on Form 8-K were filed during the quarter ended
September 30, 1997.
page 14
<PAGE>
SIGNATURES
In accordance with the requirements of the Securities Exchange Act of
1934, as amended, the Registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
METROBANCORP
(Registrant)
November 10, 1997 By: /S/ IKE G. BATALIS
--------------------
Ike G. Batalis
Chairman and
President (Principal
Executive Officer)
November 10, 1997 By: /S/ CHARLES V. TUREAN
------------------------
Charles V. Turean
Executive Vice President
(Principal Financial and
Accounting Officer)
page 15
<PAGE>
MetroBank entered into a renewable sublease agreement with Wal-Mart
Stores, Inc., a non-affiliated corporation, for a banking facility. A
summary of the lease terms is provided below.
Lessee: MetroBank
Location: Highway 37 and 32, Noblesville, Indiana
Purpose: Retail Banking Office
Space: Approximately, 525 Square Feet
Commencement Date: Targeted Date of March 15, 1998
Expiration Date: Targeted Date of March 15, 2003
Renewal Options: Two (2) additional terms of five (5)years each
On September 30, 1997, MetroBank and Phoenix Home Life Mutual
Insurance Company entered into the first amendment of a lease dated
October 11, 1993, with respect to leased office space. A summary of
the amendment is provided below.
Lessee: MetroBank
Location: 10333 N. Meridian St., Suite 111, Indianapolis, IN
Purpose: Retail Banking Office
Space: 4,992 Rentable Square Feet
Commencement Date: April 1, 1998
Expiration Date: March 31, 2005
<TABLE> <S> <C>
<ARTICLE> 9
<MULTIPLIER> 1000
<S> <S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> SEP-30-1997
<CASH> 7,573
<INT-BEARING-DEPOSITS> 0
<FED-FUNDS-SOLD> 4,800
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 18,839
<INVESTMENTS-CARRYING> 10,017
<INVESTMENTS-MARKET> 9,758
<LOANS> 76,024
<ALLOWANCE> 929
<TOTAL-ASSETS> 119,630
<DEPOSITS> 106,230
<SHORT-TERM> 0
<LIABILITIES-OTHER> 941
<LONG-TERM> 0
0
0
<COMMON> 11,210
<OTHER-SE> 678
<TOTAL-LIABILITIES-AND-EQUITY> 119,630
<INTEREST-LOAN> 5,233
<INTEREST-INVEST> 1,211
<INTEREST-OTHER> 40
<INTEREST-TOTAL> 6,484
<INTEREST-DEPOSIT> 2,754
<INTEREST-EXPENSE> 32
<INTEREST-INCOME-NET> 3,698
<LOAN-LOSSES> 112
<SECURITIES-GAINS> (15)
<EXPENSE-OTHER> 3,337
<INCOME-PRETAX> 900
<INCOME-PRE-EXTRAORDINARY> 534
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 534
<EPS-PRIMARY> 0.32
<EPS-DILUTED> 0.32
<YIELD-ACTUAL> 4.11
<LOANS-NON> 52
<LOANS-PAST> 142
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 627
<ALLOWANCE-OPEN> 866
<CHARGE-OFFS> 56
<RECOVERIES> 7
<ALLOWANCE-CLOSE> 929
<ALLOWANCE-DOMESTIC> 929
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 899
</TABLE>
