<PAGE> 1
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 10-Q
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 1997
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from ________________ to ________________
Commission File Number 33-16366
SUMMIT BANK CORPORATION
(Exact name of Registrant as specified in its charter)
GEORGIA 58-1722476
(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification No.)
4360 Chamblee-Dunwoody Road
Atlanta, Georgia 30341
(Address of principal executive offices, including Zip Code)
(770) 454-0400
(Registrant's telephone number, including area code)
Indicate by check mark whether the Registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter 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
--- ---
APPLICABLE ONLY TO CORPORATE ISSUERS:
Indicate the number of shares outstanding of each of the issuer's
classes of capital stock, as of the latest practicable date.
Class Outstanding at May 1, 1997
----- --------------------------
Common Stock. $.0l par value 1,407,688
The Exhibit Index Appears on Page 12
PAGE 1 OF 14
<PAGE> 2
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
SUMMIT BANK CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
<TABLE>
<CAPTION>
March 31, December 31,
(In thousands) 1997 1996
- ---------------------------------------------------------------------------------------------
<S> <C> <C>
ASSETS:
Cash and due from banks $ 7,465 $ 7,443
Federal funds sold 6,100 15,900
Interest-bearing deposits in other banks 26 74
Investment securities available for sale, at fair value 51,819 37,903
Other investments 758 681
Loans, net of unearned income 89,273 82,778
Loans held for sale -- 3,030
Less: allowance for loan losses (1,878) (1,931)
- ---------------------------------------------------------------------------------------------
Net loans 87,395 83,877
- ---------------------------------------------------------------------------------------------
Premises and equipment, net 4,526 4,574
Customers' acceptance liability 725 1,184
Other real estate -- --
Deferred income taxes 511 392
Other assets 2,379 2,220
- ---------------------------------------------------------------------------------------------
Total assets $ 161,704 $ 154,248
=============================================================================================
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES:
Deposits:
Noninterest-bearing demand $ 27,475 $ 27,381
Interest-bearing:
Demand 41,213 39,487
Savings 5,919 6,288
Time, $100,000 and over 23,109 23,109
Other time 42,887 36,634
- ---------------------------------------------------------------------------------------------
Total deposits 140,603 132,899
- ---------------------------------------------------------------------------------------------
Obligation under capital lease 109 118
Other borrowed funds 1,757 1,657
Acceptances outstanding 725 1,184
Other liabilities 1,471 1,454
- ---------------------------------------------------------------------------------------------
Total liabilities 144,665 137,312
- ---------------------------------------------------------------------------------------------
STOCKHOLDERS' EQUITY:
Common stock 14 14
Additional paid-in capital 12,123 12,123
Retained earnings 5,009 4,710
Net unrealized holding (losses)/gains on investment securities
available for sale, net of income taxes (107) 89
- ---------------------------------------------------------------------------------------------
Total stockholders' equity 17,039 16,936
- ---------------------------------------------------------------------------------------------
Total liabilities and stockholders' equity $ 161,704 $ 154,248
=============================================================================================
</TABLE>
See Accompanying Notes to Condensed Consolidated Financial Statements.
PAGE 2 OF 14
<PAGE> 3
SUMMIT BANK CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED INCOME STATEMENTS
(Unaudited)
<TABLE>
<CAPTION>
Three months
ended March 31,
-----------------
(Dollars in thousands, except share and per share amounts) 1997 1996
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Interest income
Loans, including fees $ 2,340 $ 2,130
Interest-bearing deposits in other banks 1 1
Federal funds sold 129 57
Investment securities-taxable 226 112
Mortgage-backed securities 504 463
- ----------------------------------------------------------------------------------
Total interest income 3,200 2,763
- ----------------------------------------------------------------------------------
Interest expense
Time deposits, $100,000 and over 296 346
Other deposits 898 725
Short-term borrowings and obligation
under capital lease 21 14
- ----------------------------------------------------------------------------------
Total interest expense 1,215 1,085
- ----------------------------------------------------------------------------------
Net interest income 1,985 1,678
Provision for loan losses 125 141
- ----------------------------------------------------------------------------------
Net interest income after provision
for loan losses 1,860 1,537
- ----------------------------------------------------------------------------------
Non-interest income
Fees for international banking services 247 275
SBA loan servicing fees 111 111
Service charge income 58 52
Overdraft and NSF charges 110 80
Gains on sales of loans -- 167
Net gains on sales of investment securities -- 116
Other 79 92
- ----------------------------------------------------------------------------------
Total non-interest income 605 893
- ----------------------------------------------------------------------------------
Non-interest expenses
Salaries and employee benefits 916 829
Equipment 154 115
Net occupancy 122 97
Other operating expenses 625 415
- ----------------------------------------------------------------------------------
Total non-interest expenses 1,817 1,456
- ----------------------------------------------------------------------------------
Income before income taxes 648 974
- ----------------------------------------------------------------------------------
Income tax expense 237 373
- ----------------------------------------------------------------------------------
Net income $ 411 $ 601
- ----------------------------------------------------------------------------------
Net income per common share and common share equivalents $ .25 $ .38
- ----------------------------------------------------------------------------------
Weighted-average common shares outstanding and
common share equivalents 1,644,793 1,630,610
- ----------------------------------------------------------------------------------
Dividends declared per common share $ .08 $ .07
==================================================================================
</TABLE>
See Accompanying Notes to Condensed Consolidated Financial Statements.
PAGE 3 OF 14
<PAGE> 4
SUMMIT BANK CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
<TABLE>
<CAPTION>
Three months
ended March 31,
----------------
(In thousands) 1997 1996
- -------------------------------------------------------------------------------------------
<S> <C> <C>
Cash flows from operating activities:
Net income $ 411 $ 601
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization of leasehold improvements 82 64
Net amortization of premiums/discounts on
investment securities 18 25
Amortization of negative goodwill (28) (27)
Provision for loan losses 125 141
Gains on sales of loans -- (167)
Proceeds from sales of loans -- 1,014
Net gains on sales of investment securities -- (116)
Changes in other assets and liabilities:
(Increase) decrease in other assets (159) 2,907
Increase (decrease) in other liabilities 45 (45)
- -------------------------------------------------------------------------------------------
Net cash provided by operating activities 494 4,397
- -------------------------------------------------------------------------------------------
Cash flows from investing activities:
Proceeds from maturities of investment securities available for sale 1,000 1,350
Principal collections on investment securities available for sale 1,148 1,061
Proceeds from sales of investment securities available for sale -- 1,920
Purchases of investment securities available for sale (16,474) (8,191)
Loans made to customers, net of principal collected on loans (3,643) (5,346)
Purchases of premises and equipment (34) (626)
- -------------------------------------------------------------------------------------------
Net cash used in investing activities (18,003) (9,832)
- -------------------------------------------------------------------------------------------
Cash flows from financing activities:
Net increase in demand and savings deposits 1,451 2,223
Net increase in time deposits 6,253 4,350
Principal payments for obligation under capital lease (9) (8)
Dividends paid (112) (98)
Net increase in borrowed funds 100 1,000
- -------------------------------------------------------------------------------------------
Net cash provided by financing activities 7,683 7,467
- -------------------------------------------------------------------------------------------
Net (decrease) increase in cash and cash equivalents (9,826) 2,032
Cash and cash equivalents at beginning of period 23,417 10,805
- -------------------------------------------------------------------------------------------
Cash and cash equivalents at end of period $ 13,591 $ 12,837
===========================================================================================
Supplemental disclosures of cash paid during the period:
Interest $ 1,187 $ 1,212
Income taxes $ -- $ --
===========================================================================================
</TABLE>
See Accompanying Notes to Condensed Consolidated Financial Statements.
PAGE 4 OF 14
<PAGE> 5
SUMMIT BANK CORPORATION AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
1. BASIS OF PRESENTATION
The consolidated financial statements included herein have been
prepared by Summit Bank Corporation and Subsidiaries (the "Company"),
without audit, pursuant to the rules and regulations of the Securities
and Exchange Commission. Certain information and footnote disclosures
normally included in consolidated financial statements prepared in
accordance with generally accepted accounting principles have been
omitted, although the Company believes that the disclosures are
adequate to make the information presented not misleading. In the
opinion of management, the information furnished in the condensed
consolidated financial statements reflects all adjustments necessary to
present fairly the Company's financial position, results of operations
and cash flows for such interim periods. Management believes that all
interim period adjustments are of a normal recurring nature. These
consolidated financial statements should be read in conjunction with
the Company's audited financial statements and the notes thereto as of
December 31, 1996, included in the Company's Annual Report on Form 10-K
for the fiscal year ended December 31, 1996.
The consolidated financial statements include the accounts of the
Company and its wholly owned subsidiaries, The Summit National Bank
(the "Bank") and The Summit Merchant Banking Corporation. All
intercompany accounts and transactions have been eliminated in
consolidation.
2. ACCOUNTING POLICIES
Reference is made to the accounting policies of the Company described
in the notes to consolidated financial statements contained in the
Company's Annual Report on Form 10-K for the year ended December 31,
1996.
3. RECLASSIFICATIONS
Certain 1996 amounts have been reclassified for comparative purposes in
order to conform the prior period to the 1997 presentation.
PAGE 5 OF 14
<PAGE> 6
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
For the three-month period ended March 31, 1997
Performance Overview
Summit Bank Corporation and Subsidiaries (the "Company") reported net income of
$411,200 for the first quarter of 1997, representing a 32% decrease compared to
earnings for the same period last year. The earnings decrease is attributed to
gains recognized in first quarter 1996 on sales of investment securities and
gains on sales of government guaranteed Small Business Administration ("SBA")
loans. Deposit growth from branch expansion has been strong, producing over $15
million of new deposits from the two new branches which opened in May and
November 1996. As a result of this increase we are now positioned to retain the
government guaranteed portion of new SBA loans in our loan portfolio, rather
than selling such guaranteed portions for short-term gains. Management believes
that while this strategy will result in a decline in short-term non-interest
income, the offset will be considerably higher levels of net interest income
from a larger loan portfolio. Therefore, the Company did not sell any interest
earning assets this quarter. Net earnings per share for first quarter 1997 were
$.25 as compared to $.38 for first quarter 1996. The annualized return on
average stockholders' equity for 1997 was 9.7% versus 15.5% for the 1996
three-month period, while the return on average assets was 1.06% compared to
1.80% in 1996. Book value per share increased to $12.10 at March 31 1997, from
$12.03 at December 31, 1996 and $11.15 at March 31, 1996. In first quarter 1997,
the Company approved a dividend increase to $.09 per share per quarter beginning
in the second quarter. This follows a trend of consistent annual increases since
the Company began paying dividends to shareholders in 1995.
Total assets at March 31, 1997 were $162 million, an increase of 17% during the
last twelve months and 5% since year end 1996. Total deposits have grown $24
million, or 21%, during the last twelve months and $8 million, or 6%, since
December 31, 1996. Much of the deposit growth has come from the Company's branch
expansion in Cobb and Gwinnett counties. Net loans increased $3.5 million, or
4%, to $87.4 million, since December 31, 1996. During the last twelve months net
loans grew 9%, or $7 million.
Investment in premises and equipment increased to $4.5 million at March 31, 1997
as compared to $3.5 million at March 31, 1996. This increase represents the
purchase of the Peachtree Corners branch site acquired by the Bank in 1996, as
well as applicable furniture, fixtures and equipment. This branch is located in
the rapidly growing Gwinnett county market and has shown promise in its growth
of deposits, particularly demand deposits, indicating the establishment of new
small business relationships.
Net interest income increased 18.3% to $2 million during first quarter 1997
compared to the same period in 1996, primarily due to a higher volume of
interest earning assets. The Company's net interest margin through March 31,
1997 increased to 5.65% from 5.55% for the comparable period in 1996 due, also,
to the higher level of average earning assets.
Provision for loan losses decreased to $125,000 from $141,000 for the respective
first quarters of 1997 and 1996. Gross charged off loans for the quarter ended
March 31, 1997 were $234,000 offset by recoveries of $56,000, resulting in an
annualized net charge-off rate of .80% of total loans. Although this is an
increase from first quarter 1996 results of .02% of total loans, management
believes this remains an acceptable rate. Net loan charge-offs were .19% for the
year ended December 31, 1996. The government guaranteed portion of some of the
charge-offs are expected to be recovered later in 1997. Non-interest income
decreased 32% to $605,000 for first quarter 1997 from $893,000 for the same
period in 1996. Non-interest income during first quarter 1996 included $116,000
of gains on sales of investment securities and $167,000 of net gains from sales
of SBA loans. As previously discussed, no interest earning assets were sold in
first quarter 1997 because of strong deposit growth which has enabled the
Company to hold SBA loans. Service charges on deposit accounts, coupled with
overdraft and insufficient funds charges, increased $36,000 to $168,000 in first
quarter 1997 from $132,000 in the comparable quarter 1996.
Non-interest expenses increased 25% in the first quarter of 1997 as compared to
the same period last year. This increase was largely attributed to the Bank's
addition of two new branch locations after first quarter 1996. Personnel
expenses increased $86,000, or 10%, comparing first quarters 1997 and 1996, to
accommodate the branch
PAGE 6 OF 14
<PAGE> 7
staffing. Moreover, occupancy and equipment costs increased $25,000 and $39,000,
respectively, in the first quarter 1997, from same period in 1996. Of these
increases, $13,500 and $31,500, respectively, are directly related to the two
new branches. Other operating expenses increased 51% to $625,000 for the year to
date 1997 compared to the same quarter last year. The largest portion of the
increase, $94,000, was a result of three separate operating losses realized in
March 1997 from fraudulent accounts and/or checks. Marketing expenses also
increased $29,000 as compared to the three-month period last year. This increase
was the continued result of a heightened advertising campaign and costs
associated with branch expansion. The Company's efficiency ratio for three-month
period of 1997 was 70% as compared to 57% for the same period last year due to
the high operating expenses as previously discussed. The efficiency rate is
expected to improve as the new branches mature and become more profitable.
Asset Quality
Non-performing assets decreased to $767,000 at March 31, 1997 compared to
$922,000 at year end 1996. Non-performing assets represented .86% of total loans
as of March 31, 1997 compared to 1.07% at December 31, 1996. The total of
non-performing loans at March 31, 1997 represents only one credit for which the
Bank believes it is well secured. The Company had no loans 90 days or more past
due and still accruing at March 31, 1997.
NON-PERFORMING ASSETS
<TABLE>
<CAPTION>
March 31, December 31,
(Dollars in thousands) 1997 1996
- -----------------------------------------------------------------------------------------
<S> <C> <C>
Loans on nonaccrual $767 $922
Other real estate -- --
Restructured loans -- --
- -----------------------------------------------------------------------------------------
Total non-performing assets $767 $922
=========================================================================================
Loans 90 days past due and still accruing interest $ -- --
Total non-performing assets as a
percentage of total loans and ORE .86% 1.07%
Loans ninety days past due and still accruing
interest as a percentage of total loans --% --%
</TABLE>
The allowance for loan losses decreased to $1,878,000 at March 31, 1997 from
$1,931,000 at year end 1996, an decrease of 3%. Loan losses have increased
slightly this year with gross charge-offs of $234,000 offset by recoveries of
$56,000, resulting in a net annualized charge-off rate of .80% of average total
loans compared to .19% for the entire year of 1996. However, some of the loans
charged off were fully guaranteed SBA loans for which the Company is expected to
receive reimbursement from the SBA and subsequently record such as recoveries.
The allowance for loan losses represented 2.10% and 2.25%, respectively, of
total loans outstanding at March 31, 1997 and December 31, 1996.
PAGE 7 OF 14
<PAGE> 8
ANALYSIS OF ALLOWANCE FOR LOAN LOSSES AT MARCH 31, 1997
<TABLE>
(In thousands)
-----------------------------------------------------------------------
<S> <C>
Allowance for loan losses at December 31, 1996 $1,931
-----------------------------------------------------------------------
Charge-offs:
Commercial, financial, and agricultural 217
Real estate --
Installment loans to individuals 17
-----------------------------------------------------------------------
Total 234
-----------------------------------------------------------------------
Recoveries:
Commercial, financial, and agricultural 50
Real estate --
Installment loans to individuals 6
-----------------------------------------------------------------------
Total 56
-----------------------------------------------------------------------
Net charge-offs 178
-----------------------------------------------------------------------
Provision for loan losses charged to income 125
-----------------------------------------------------------------------
Allowance for loan losses at March 31, 1997 $1,878
-----------------------------------------------------------------------
</TABLE>
The loan portfolio is periodically reviewed to evaluate the outstanding loans
and to measure both the performance of the portfolio and the adequacy of the
allowance for loan losses. This analysis includes a review of delinquency
trends, actual losses and internal credit ratings. Based on this analysis,
management considers the allowance for loan losses at March 31, 1997 to be
adequate to cover possible loan losses in the portfolio as of that date.
However, because of the inherent uncertainty of assumptions made during the
evaluation process, there can be no assurance that loan losses in future periods
will not exceed the allowance for loan losses or that additional allocations to
the allowance will not be required.
Liquidity and Capital Adequacy
Liquidity has continued to improve during 1997 as a result of the strong growth
in deposits. At March 31, 1997, the Company's net loan to deposit ratio was
62.2%, down from 63.1% at year end. Management also analyzes the level of
off-balance sheet assets such as unfunded loan commitments and outstanding
letters of credit as they relate to the levels of cash, cash equivalents, liquid
investments, and available federal funds lines to ensure that no potential
shortfall exists. Additionally, the Bank has $16 million of borrowing capacity
under a secured line of credit available from the Federal Home Loan Bank of
Atlanta. Based on this analysis, management believes that the Company has
adequate liquidity to meet short-term operational requirements.
Stockholders' equity of the Company increased $103,000 to $17 million at March
31, 1997, an increase of 1% from December 31, 1996, and 9% from March 31, 1996.
The capital level of the Bank exceeds all prescribed regulatory capital
guidelines. Regulations require that most highly rated national banks maintain a
minimum Tier 1 leverage ratio of 3%, and require other banks to maintain a
minimum Tier 1 leverage ratio of 3% plus an additional cushion of at least 1 to
2 percentage points. Tier 1 capital consists of stockholders' equity less
certain intangible assets. The Bank's Tier 1 leverage ratio declined to 9.3% at
March 31, 1997 compared to 10.2% at year end 1996 primarily as a result of asset
growth. Regulations require that the Bank maintain a minimum total risk weighted
capital ratio of 8% with 50%, or 4%, of this amount made up of Tier 1 capital.
Risk-weighted assets consist of balance sheet assets adjusted by risk category
and off-balance sheet asset equivalents similarly adjusted. At March 31, 1997,
the Bank had a risk-weighted total capital ratio of 16.4% and a Tier 1
risk-weighted capital ratio of 15.1% which compares favorably to year end 1996
ratios of 15.6% and 14.2%, respectively.
PAGE 8 OF 14
<PAGE> 9
PART II. - OTHER INFORMATION
ITEM 1. Legal Proceedings - Not Applicable
ITEM 2. Changes in Securities - Not Applicable
ITEM 3. Defaults Upon Senior Securities - Not Applicable
ITEM 4. Submission of Matters to a Vote of Security Holders - Not Applicable
ITEM 5. Other Information - Not Applicable
PAGE 9 OF 14
<PAGE> 10
ITEM 6. Exhibits and Reports on Form 8-K
a) Exhibits
Exhibit 11. 1
Statement Regarding Computation of Per Share Earnings
Exhibit 27.1
Financial Data Schedule (for SEC use only)
b) Reports on Form 8-K - none
PAGE 10 OF 14
<PAGE> 11
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this Report to be signed by the undersigned,
thereunto duly authorized.
SUMMIT BANK CORPORATION
BY: /s/ David Yu
--------------------------------------
David Yu
President and Chief Executive Officer
BY: /s/ Gary K. McClung
--------------------------------------
Gary K. McClung
Executive Vice President
(Principal Financial Officer
and Principal Accounting Officer)
DATE: May 13, 1997
-------------------------------------
PAGE 11 OF 14
<PAGE> 12
INDEX TO EXHIBITS
<TABLE>
<CAPTION>
Exhibit Page
- ------- ----
<S> <C> <C>
11.1 Statement Regarding Computation of Per Share Earnings 13
27.1 Financial Data Schedule (for SEC use only) 14
</TABLE>
PAGE 12 OF 14
<PAGE> 1
Exhibit 11.1
STATEMENT REGARDING COMPUTATION
OF PER SHARE EARNINGS
<TABLE>
<CAPTION>
Statement Regarding Computation of Year to Date
Per Share Earnings ended March 31,
----------------------------
1997 1996
---- ----
<S> <C> <C>
Earnings per share:
Weighted average shares outstanding 1,407,688 1,407,688
Net income per share $ .29 $ .43
Primary earnings per share:
Weighted average shares outstanding 1,407,688 1,407,688
Dilutive warrants 463,235 463,235
Dilutive stock options 41,225 41,225
Repurchased under treasury stock
method(1) (267,355) (281,538)
----------- -----------
Weighted average common shares
outstanding and common share
equivalents 1,644,793 1,630,610
----------- -----------
Net income $ 411,000 $ 601,000
Imputed interest income under the
treasury stock method (net of tax) -- 17,248
----------- -----------
Imputed net income 411,000 618,248
=========== ===========
Net income per share $ .25 $ .38
=========== ===========
</TABLE>
(1) Dilutive warrants and options calculated up to 20% of total shares
outstanding in the applicable periods.
PAGE 13 OF 14
<TABLE> <S> <C>
<ARTICLE> 9
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE MARCH
31, 1997 10-Q FINANCIAL STATEMENTS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE
TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> MAR-31-1997
<CASH> 7,465
<INT-BEARING-DEPOSITS> 26
<FED-FUNDS-SOLD> 6,100
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 51,819
<INVESTMENTS-CARRYING> 758
<INVESTMENTS-MARKET> 758
<LOANS> 89,273
<ALLOWANCE> 1,878
<TOTAL-ASSETS> 161,704
<DEPOSITS> 140,603
<SHORT-TERM> 1,757
<LIABILITIES-OTHER> 2,305
<LONG-TERM> 0
0
0
<COMMON> 14
<OTHER-SE> 17,025
<TOTAL-LIABILITIES-AND-EQUITY> 161,704
<INTEREST-LOAN> 2,340
<INTEREST-INVEST> 730
<INTEREST-OTHER> 130
<INTEREST-TOTAL> 3,200
<INTEREST-DEPOSIT> 1,194
<INTEREST-EXPENSE> 1,215
<INTEREST-INCOME-NET> 1,985
<LOAN-LOSSES> 125
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 1,817
<INCOME-PRETAX> 648
<INCOME-PRE-EXTRAORDINARY> 648
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 411
<EPS-PRIMARY> .25
<EPS-DILUTED> .25
<YIELD-ACTUAL> 5.65
<LOANS-NON> 767
<LOANS-PAST> 0
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 1,931
<CHARGE-OFFS> 234
<RECOVERIES> 56
<ALLOWANCE-CLOSE> 1,878
<ALLOWANCE-DOMESTIC> 1,878
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
