FORM 10-QSB
U. S. Securities and Exchange Commission
Washington, D.C. 20549
(Mark One)
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934.
For the quarterly period ended March 31, 1998
--------------
[ ] TRANSITIONS REPORT UNDER SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE
ACT OF 1943.
For the transition period from ___________ to _________
Commission file number 0-16657
FIRST GEORGIA HOLDING, INC.
Georgia 58-1781773
- ----------------------------- ---------------------------------
(State or other jurisdiction or (IRS Employer Identification No.)
of incorporation or organization)
1703 Gloucester Street
Brunswick, Georgia 31520
------------------------
(Issuer's Address)
(912) 267-7283
--------------
(Issuer's telephone number)
Check whether the issuer (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
------- -------
Number of shares of Common Stock outstanding as of March 31, 1998.
3,199,352
<PAGE>
PART I
FINANCIAL INFORMATION
The consolidated financial statements of First Georgia
Holding, Inc. filed as a part of this report are as
follows:
Page
Consolidated Balance Sheets as of
March 31, 1998 and September 30, 1997. 3
Consolidated Income Statements for the
Three Months Ended March 31, 1998 & 1997. 4
Consolidated Cash Flow Statements for
the Three Months ended March 31, 1998 & 1997 and
the Six Months ended March 31, 1998 & 1997. 5
Notes to Consolidated Financial Statements 6
Management's Discussion and Analysis of
Consolidated Statements of Financial
Condition and Results of Operations 7
PART II
Item 4. Submission of Matters to a Vote of
Security Holders 13
Item 6. Exhibits and Reports on Form 8-K 13
2
<PAGE>
FIRST GEORGIA HOLDING, INC.
CONSOLIDATED BALANCE SHEETS
Assets: 3/31/98 9/30/97
----------- -----------
Cash and cash equivalents $ 4,459,738 2,985,350
Interest bearing deposits in other banks 321,831 1,523,777
Investment securities to be held to maturity,
fair value approximately $10,545,000 at
March 31, 1998 and $9,692,000 at September 30, 1997 10,399,367 9,634,453
Loans receivable, net 152,284,108 137,864,633
Real Estate Owned 240,008 423,000
Federal Home Loan Bank stock, at cost 1,160,300 1,160,300
Premises and equipment, net 3,629,017 3,181,618
Accrued interest receivable 1,036,830 960,160
Intangible assets, net 973,855 1,029,715
Other assets 1,009,758 938,491
------------ ------------
$ 175,514,812 159,701,497
============ ============
Liabilities and Stockholders' Equity
Liabilities:
Deposits $ 145,326,029 129,889,936
Federal Home Loan Bank advances 13,450,000 14,350,000
Other borrowed money 190,000 -
Accrued interest payable 533,943 496,305
Accrued expenses and other liabilities 1,805,595 1,617,986
------------ ------------
161,305,567 146,354,227
------------ ------------
Stockholders' Equity
Common stock, $1.00 par value. 10,000,000
shares authorized; 3,199,352 and 3,052,319
shares issued and outstanding at
March 31, 1998 and September 30, 1997,
respectively. 3,199,352 3,052,319
Additional paid-in capital 4,315,827 4,223,197
Retained earnings 6,694,066 6,071,754
------------ ------------
14,209,245 13,347,270
------------ ------------
$ 175,514,812 159,701,497
============ ============
See accompanying notes to consolidated financial statements.
3
<PAGE>
FIRST GEORGIA HOLDING, INC.
CONSOLIDATED INCOME STATEMENTS
Three Months Ended Six Months Ended
-------------------------- ---------------------
3/31/98 3/31/97 3/31/98 3/31/97
-------------------------- ---------------------
Interest Income:
Loans $ 3,474,943 2,894,976 6,831,706 5,773,797
Investment securities 174,276 143,662 357,103 304,054
Other 7,788 58,912 20,354 138,297
------------ ------------ ----------- ---------
Total interest income 3,657,007 3,097,550 7,209,163 6,216,148
------------ ------------ ----------- ---------
Interest Expense:
Deposits 1,666,320 1,513,670 3,325,807 3,069,127
Advances and other borrowings 226,651 174,450 451,694 353,575
------------ ----------- ---------- ---------
Total interest expense 1,892,971 1,688,120 3,777,501 3,422,702
------------ ----------- ---------- ---------
Net interest income 1,764,036 1,409,430 3,431,662 2,793,446
Provision for Loan Losses 2,180 295,524 3,307 305,932
------------ ---------- ---------- ---------
Net interest income after
provision for loan losses 1,761,856 1,113,906 3,428,355 2,487,514
------------ ---------- ---------- ---------
Other Income:
Loan servicing fees 207,968 125,721 395,727 226,264
Deposit service charges 211,802 148,712 446,211 305,590
Gain on sale of
foreclosed property 5,539 11,594 5,539 11,594
Gain on sale of branch - 433,946 - 433,946
Other operating income 5,467 3,421 16,274 11,366
------------ ---------- ---------- ---------
Total other income 430,776 723,394 863,751 988,760
------------ ---------- ---------- ---------
Other Expenses:
Salaries and employee benefits 729,465 583,412 1,401,788 1,147,699
Premises and occupancy costs 290,252 262,831 575,424 519,895
Amortization of intangibles 27,930 30,831 55,860 63,765
Federal insurance premiums 20,236 4,601 40,178 72,187
Other operating expenses 366,386 300,286 714,343 538,348
------------ ---------- ---------- ---------
Total other expenses 1,434,269 1,181,961 2,787,593 2,341,894
------------ ---------- ---------- ---------
Income before income taxes 758,363 655,339 1,504,513 1,134,380
Income taxes 280,908 244,810 562,265 420,345
------------ ---------- ---------- ---------
Net Income $ 477,455 410,529 942,248 714,035
============ ========== ========== =========
Income per share
of common stock $ 0.14 0.13 0.41 0.22
============ ========== ========== =========
Weighted average number
of shares outstanding 3,196,085 3,052,319 3,123,412 3,052,319
See accompanying notes to consolidated financial statements
4
<PAGE>
FIRST GEORGIA HOLDING, INC.
CONSOLIDATED CASH FLOW STATEMENTS
SIX MONTHS ENDED MARCH 31,
1998 1997
------------------------------
OPERATING ACTIVITIES:
Net income $ 942,248 714,035
Adjustments to reconcile net income
to net cash provided by operations:
Provision for loan losses 3,307 305,932
Depreciation and amortization 216,129 182,763
Amortization of intangibles (55,860) 190,957
Amortization of deferred loan fees (57,051) (58,912)
FHLB Stock Redemption - 415,400
(Gain)/Loss on sale of REO (5,539) (11,594)
(Increase) Decrease in accrued
interest receivable (76,670) 499
Increase (decrease) in other assets (71,267) 207,340
Increase (decrease) in accrued expenses and
liabilities 225,247 (487,005)
-------------------------------
Net Cash Provided By Operating Activities 1,120,544 1,459,415
-------------------------------
INVESTING ACTIVITIES:
Principal payments received on
mortgage-backed securities 466,732 527,091
Maturities of investment securities 1,100,000 2,589,063
Purchase of investment securities (2,328,671) -
Loan originations, net of principal repayments (14,365,731) (4,185,215)
Purchase of Premises and equipment (666,503) (154,406)
Proceeds from the sale of premises and equipment - 235,283
Proceeds from the sale of real estate 300,251 148,254
--------------------------------
Net Cash Used By Investing Activities (15,493,922) (839,930)
--------------------------------
FINANCING ACTIVITIES:
Net increase (decrease) in deposits 15,436,093 (1,136,400)
(Repayments of) Proceeds from other borrowings 190,000 -
Proceeds from FHLB Advances 14,350,000 1,750,000
Repayments of FHLB Advances (15,250,000) (500,000)
Net Proceeds from stock options 239,663 -
Cash Dividends paid (319,936) (162,793)
--------------------------------
Net Cash Provided by Financing Activities 14,645,820 (49,193)
--------------------------------
Increase In Cash And Cash Equivalents 272,442 570,292
Cash and Cash equivalents at beginning of year 4,509,127 5,910,678
--------------------------------
Cash and cash equivalents at end of quarter $ 4,781,569 6,480,970
================================
See accompanying notes to consolidated financial statements
5
<PAGE>
FIRST GEORGIA HOLDING, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(1) BASIS OF PRESENTATION
In the opinion of Management, the accompanying unaudited
consolidated financial statements contain all adjustments
necessary to present fairly the financial position of First
Georgia Holding, Inc. as of March 31, 1998 and September
30, 1997. Also included are the results of its operations
and changes in financial position for the three months
ended March 31, 1998 and 1997, and also the six months
ended March 31, 1998 and 1997. The results of operations
for the interim periods presented are not necessarily
indicative of the results to be expected for the full year.
For further information, refer to the consolidated
financial statements and footnotes thereto included in the
Bank's Annual Report to Shareholders, incorporated by
reference into the Company's Form 10-KSB for the year ended
September 30, 1998.
(2) EARNINGS PER SHARE
Earnings per common share were computed using the weighted
average number of shares outstanding during the period as
shown on the face of the Consolidated Income Statements.
6
<PAGE>
FIRST GEORGIA HOLDING, INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF CONSOLIDATED
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
LIQUIDITY
First Georgia Bank (the Bank) has traditionally maintained
levels of liquidity above levels required by regulatory
authorities. As a member of the Federal Home Loan Bank
System, the Bank is required to maintain a daily average
balance of cash and eligible liquidity investments equal to
a monthly average of 4% of withdrawable savings and short-
term borrowings. The Bank's liquidity level was 4.80% and
4.38% at March 31, 1998 and September 30, 1998,
respectively.
The Bank's operational needs, demand for loan
disbursements, and savings withdrawals can be met by loan
principal, interest payments received, new deposits, and
excess liquid assets. Significant loan demand, deposit
withdrawal, increased delinquencies, and increased real
estate acquired in settlement of loans (REO) could alter
this condition. Management does not foresee any
liquidity problems for 1998.
CAPITAL RESOURCES
The following is a reconciliation at March 31, 1998 of the
Bank's equity capital to regulatory capital, under
generally accepted accounting principles:
First Georgia Bank
Stockholders' Equity 14,104,000
Less:
Intangible Assets 974,000
------------
Tangible Capital 13,130,000
Plus:
Qualifying intangible assets 974,000
------------
Core Capital 14,104,000
Plus:
Supplemental Capital 1,112,000
------------
Risk-based Capital 15,216,000
============
Current regulations require institutions to keep minimum
regulatory tangible capital equal to 1.5% of adjusted
assets, minimum core capital to adjusted assets of 3% (the
leverage ratio), and risk-based capital to risk-adjusted
assets of 8%. The Office of Thrift Supervision (the OTS)
may increase the minimum core capital, or leverage ratio,
based on its assessment of the institution's risk
management systems and the level of total risk in the
individual institution. At March 31, 1998, the Bank met
all three capital requirements.
The Bank's regulatory capital and the required minimum
amounts at March 31, 1998 are summarized as follows:
7
<PAGE>
Required Minimum
Bank Capital Amount Excess (Deficiency)
- --------------------------------------------------------------------------------
% $ % $ % $
- --------------------------------------------------------------------------------
Tangible Capital 7.53% 13,130,000 1.50% 2,617,000 6.05% 10,513,000
Core Capital 8.04% 14,104,000 4.00% 7,018,000 4.04% 7,086,000
Risk-based
Capital 10.02% 15,216,000 8.00% 12,149,000 2.02% 3,067,000
The Federal Deposit Insurance Corporation Improvement Act
(FDICIA) required the Federal banking agencies to take
"prompt corrective action" in respect to institutions that
do not meet minimum capital requirements. Along with the
ratios described above, FDICIA also introduced an
additional capital measurement, the Tier 1 risk-based
capital ratio. The Tier 1 ratio is the ratio of Tier 1 or
core capital to total risk-adjusted assets. FDICIA
establishes five capital tiers: "well capitalized,"
"adequately capitalized," "undercapitalized,"
"significantly undercapitalized," and "critically
undercapitalized." The regulators summarize their minimum
requirements for the five capital tiers established by the
FDICIA as follows:
Tier 1 Risk-Based Risk-based
Capital Ratio Capital Ratio Leverage Ratio
----------------- ------------- ---------------
Well Capitalized 10% or above 6% or above 5% or above
Adequately
Capitalized 8% or above 4% or above 4% or above
Undercapitalized Less than 8% Less than 4% Less than 3%
Significantly
Undercapitalized Less than 8% Less than 4% Less than 3%
Critically Undercapitalized ------------- ---------- 2% or less
An unsatisfactory examination rating may cause an
institution's capitalization category to be lower than
suggested by its actual capital position.
At March 31, 1998, the Bank's Tier 1 risk-based capital
ratio was 9.29%. If a depository institution should fail
to meet its regulatory capital requirements, regulatory
agencies can require submission and funding of a capital
restoration plan by the institution, place limits on its
activities, require the raising of additional capital, and
ultimately require the appointments of a conservator or
receiver for the institution.
The Bank's capital position changed during the quarter
ended March 31, 1998. Total capital as well as tangible
capital, core capital, and risk-based capital continued to
increase during the quarter. The mix of risk-based assets
and additional earnings are the primary factors for this
increase.
RESULTS OF OPERATIONS
INTEREST INCOME
Interest income on loans increased $579,967, or 20.03%, for
the three month period ended March 31, 1998 and $1,057,909,
or 18.32% for the six month month period ended March 31,
1998 as compared to the same period in 1997. The Company
has been aggressive in attracting new loan business while
8
<PAGE>
competition for loans remains strong and loan demand is
still steady in the marketplace. However, the Bank
continues to be selective in the loans that it makes, as
evident by its low real estate foreclosed balances.
Management expects loan demand to maintain healthy levels.
Interest on investments increased $30,614, or 21.31% for
the quarter and $53,049, or 17.45% for the six month period
ended March 31, 1998 compared to March 31, 1997. The Bank
had some low interest investments mature and used the
proceeds to purchase some investments which would generate
more income. Other interest income for the quarter ended
March 31, 1998 decreased $51,124, or 86.78% as compared to
the same quarter ended March 31, 1997. For the six month
period ended March 31, 1998, other income decreased
$117,943, or 85.28% as compared to the same period ended
March 31, 1997. In planning for the sale of the Hinesville
office, which closed March 7, 1997, the Bank maintained
high cash balances. With the completion of that sale, the
Bank has used its cash reserves to fund increasing loan
growth.
INTEREST EXPENSE
Interest Expense increased $206,864 (12.27%) for the
quarter ended March 31, 1998 and $358,846 (10.50) for the
six month period ended March 31, 1998 as compared to the
same period in 1997. Interest on deposits increased
$152,650 (10.08%) for the three month period ended March
31, 1998 and $256,680 (8.36) for the six month period ended
March 31, 1998 compared to the same periods ended March 31,
1997. Average deposit balances increased approximately
$10,750,000 in the six month period from September 30, 1997
to December 31, 1997, and this growth rate is expected to
increase as the year goes on. The market place in which
the Bank operates is extremely conducive to deposit growth,
as evidenced by the Bank's increase in deposits. Despite
the increases in deposits, the Bank had to purchase fed
funds throughout the quarter and six month period to help
fund the high loan demand. This increase is the reason
interest on borrowings increased $54,214, or 31.44% for the
quarter and $102,166, or 29.23% for the six month period.
NET INTEREST INCOME
Net Interest Income increased $352,593, or 24.98% for the
quarter and $634,169, or 22.67% for the six month period
ended March 31, 1998 as compared to the same periods last
year. Increases in loan balances and interest earning
deposits offset the increases in deposit balances enough to
produce a favorable net interest margin. Management
believes this growth will continue throughout fiscal 1998.
PROVISION FOR LOAN LOSSES
The provision for loan losses expense decreased $293,344
for the quarter and $302,625 for the six months ended March
31, 1998 as compared to the same periods ended March 31,
1997. Following the sale of the Hinesville office,
Management decided to allocate over $285,000 of the gain to
the loan loss provision. This charge was not present in the
current reporting periods. The loan loss provision at
March 31, 1998 was over $1,000,000, which is well over the
necessary regulatory requirements. Management feels the
reserve is at adequate levels and does not warrant any
transfers from earnings at this time. Net Interest Income
after Provision for Loan Losses for the quarter ended March
31, 1998 increased $645,937, or 57.88% from the same period
last year and $936,794, or 37.60% for the six month period
ended March 31, 1998 over March 31, 1997.
OTHER INCOME
Other Income for the quarter decreased $292,618, or 40.45%
from the same quarter the previous year and $125,009, or
12.64%, for the six month period ended March 31, 1998 as
compared to March 31, 1997. The Bank realized a gain on
the sale of the Hinesville office of $433,946 in March of
1997. Since this gain was not present in 1998, the numbers
are somewhat deflated. Loan servicing fees increased
$82,247 (65.42%) for the quarter and $169,463 (74.90) for
the six month period ended March 31, 1998. Deposit service
charges increased $63,090 (42.42%) for the quarter and
$140,621 (46.02%) for the six month period ended March 31,
9
<PAGE>
1998. As the Bank's loan and deposit balances increase
steadily, these particular areas increase also.
OTHER EXPENSES
Other expenses for the quarter ended March 31, 1998
increased $256,062, or 21.73%, over the quarter ended March
31, 1997. Other expenses for the quarter ended March 31,
1998 increased $449,531, or 19.23%, over the six month
period ended March 31, 1997. Personnel expense increased
$146,053, or 25.03% in the three month period ending March
31, 1998 over March 31, 1997, and $254,089, or 22.14 for
the six month period ended March 31, 1998 over the same
period last year. The Bank has added several new employees
to help with the growth the Bank is experiencing. Federal
insurance premiums increased $15,635, or 339.82% for the
three month period ended March 31, 1998 over the same
period in 1997. However, for the six month period ended
March 31, 1998, federal insurance premiums decreased
$32,009 (44.34%) as compared to March 31, 1997. The
special SAIF assessment lowered the insurance rate
beginning January of 1997, so going forward from this
quarter will show more parity between the two years on a
quarterly basis. On a year to date basis, this figure will
be lower because the SAIF assessment was absorbed the first
quarter of fiscal 1997.
The Bank accrued $280,908 in income taxes for the quarter
ended March 31, 1998, an increase of $36,098 (14.75%) over
the same quarter in 1996.
FINANCIAL CONDITION
ASSETS
Cash increased $1,474,388, or 49.39%, over the six month
period ended March 31, 1998. With the increase in
transaction deposit accounts, the Bank has kept higher cash
balances. Interest bearing deposits in other banks
decreased $1,201,946, or 78.88%, over the same period due
to the high loan demand. The Bank is quickly turning over
new deposit balances into new loan disbursements.
Investment securities increased $764,914, or 7.94% from
September 30, 1997 to March 31, 1998. As several bonds
matured, the Bank replaced them with larger bonds carrying
a more favorable interest rate.
Loans receivable increased $14,419,475, or 10.46% as of
ended March 31, 1998 over September 30, 1997. The Bank has
been aggressive, yet selective, in attracting new loan
business. Loan demand is steady, and the bank has been
successful in drawing strong, safe loans to the bank. The
Bank's Loan portfolio is as follows:
10
<PAGE>
LOANS RECEIVABLE
3/31/98 9/30/97
--------------- --------------
Real estate mortgage loans $ 105,063,034 102,419,019
Real estate construction loans 27,295,386 16,996,563
Consumer loans 11,240,217 10,383,515
Commercial and other loans 9,948,590 9,137,932
--------------- --------------
153,547,227 138,937,029
Less:
Deferred loan fees 69,972 (12,921)
Unearned interest income 81,566 72,995
Allowance for loan losses 1,111,581 1,012,322
--------------- --------------
$ 152,284,108 137,864,633
=============== ==============
Management's evaluation of the risk elements in the loan
portfolio is the basis for the allowance for loan losses.
The elements include possible declines in the value of
collateral due to changing economic conditions and
depreciation over time, size and composition of the loan
portfolio, and current economic conditions that might
affect a borrower's ability to pay. Review of specific
problem loans, regulatory examinations, historical charge-
off experience, and levels of nonperforming and past due
loans are other elements considered. Management reviews
these factors frequently and determines if the level of
loan loss allowances is adequate. For the six month period
ending March 31, 1998, Management allocated $3,307 of
earnings to the provision for loan losses. At March 31,
1998, the Bank believes its allowance for loan losses is
adequate to provide for future losses.
The following tables illustrate the Bank's problem loans
and its allowance for loan losses. When a loan has been
past due ninety days or more, Management reevaluates the
loan and its underlying risk elements to determine if it
should be placed on nonaccrual status. These loans are
loans for which unpaid interest is not recognized in
income. Past due loans are loans which are ninety days or
more delinquent and still accruing interest.
11
<PAGE>
ANALYSIS OF ALLOWANCE FOR LOAN LOSSES
03/31/98 03/31/97
------------- -------------
Beginning balance $ 1,012,322 955,288
Loans charged-off:
Real estate construction - -
Real estate mortgage 8,664 185,696
Consumer and other 28,482 162,520
------------ ------------
Total charge offs 37,146 348,216
Recoveries:
Real estate construction - -
Real estate mortgage 51,340 32,939
Consumer and other 81,758 62,632
------------ ----------
Total recoveries 133,098 95,571
------------ ----------
Net charge-offs (95,952) 252,645
Provision charged to operations 3,307 309,679
------------ -----------
Balance at end of period $ 1,111,581 1,012,322
============ ===========
Ratio of net charge-offs to
average loans outstanding -0.06% 20.00%
------------ -----------
12
<PAGE>
ANALYSIS OF NON-ACCRUING AND PAST DUE LOANS
03/31/98 09/30/97
--------------- ----------------
Non-accruing Loans
Real estate
Construction $ 203,187 -
Mortgage 2,370,660 1,914,640
Consumer 64,193 44,781
------------- -------------
Total non-accruing loans 2,638,040 1,959,421
------------- -------------
Past Due Loans
Real estate
Construction - -
Mortgage - -
Consumer - -
------------- ------------
Total past due loans - -
------------- ------------
Total non-accruing
and past due loans $ 2,638,040 1,959,421
============= ============
Percentage of total loans 1.73% 1.41%
============= ============
Real estate acquired
through foreclosure $ 240,008 423,000
============= ============
Total non-accruing,past due
loans, and nonperforming assets. $ 2,878,048 2,382,421
------------- ------------
LIABILITIES
Deposits have increased $15,436,093, or 11.88%, for the six
month period ended March 31, 1998. Along with loans, the
Bank has been working hard to increase its market share in
Glynn County's deposit business. As the numbers dictate,
First Georgia has been somewhat successful in soliciting
new deposit business. While the Bank did decrease its
borrowing position with the Federal Home Loan Bank by
$900,000 (6.27%) over the three month period, the Bank
secured a fed funds line with another institution to
provide short term borrowings (or investment of excess
cash). At March 31, 1998, these borrowings stood at
$190,000.
13
<PAGE>
PART II
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY
HOLDERS
First Georgia Holding, Inc. had its Annual Meeting of
Shareholders on January 20, 1998. The principal business
of the meeting was to elect the Company's Class III
Directors. This class of directors consisted of James D.
Moore, D. Lamont Shell, and M. Frank Deloach,III.
The results of the vote were as follows:
For 2,682,983
Withhold Authority 118
-------------
Total votes 2,683,101
ITEM 6. EXHIBITS AND REPORTS ON FORM 80K
The Bank filed no reports on Form 8-K for the quarter ended
March 31, 1998.
14
<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.
DATE: APRIL 30, 1998 BY: /S/ G. FRED COOLIDGE III
---------------- -------------------------
G. Fred Coolidge III
Executive Vice President
Chief Financial Officer
15
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 9
<MULTIPLIER> 1,000
<S> <C> <C>
<PERIOD-TYPE> 3-MOS 6-MOS
<FISCAL-YEAR-END> SEP-30-1998 SEP-30-1998
<PERIOD-END> MAR-31-1998 MAR-31-1998
<CASH> 4,460 4460
<INT-BEARING-DEPOSITS> 322 322
<FED-FUNDS-SOLD> 0 0
<TRADING-ASSETS> 0 0
<INVESTMENTS-HELD-FOR-SALE> 0 0
<INVESTMENTS-CARRYING> 10399 10399
<INVESTMENTS-MARKET> 10545 10545
<LOANS> 152284 152284
<ALLOWANCE> 1112 1112
<TOTAL-ASSETS> 175515 175515
<DEPOSITS> 145326 145326
<SHORT-TERM> 11140 11140
<LIABILITIES-OTHER> 2342 2342
<LONG-TERM> 2500 2500
0 0
0 0
<COMMON> 3199 3199
<OTHER-SE> 11010 11010
<TOTAL-LIABILITIES-AND-EQUITY> 14209 14209
<INTEREST-LOAN> 3475 6832
<INTEREST-INVEST> 174 357
<INTEREST-OTHER> 8 20
<INTEREST-TOTAL> 3657 7209
<INTEREST-DEPOSIT> 1666 3326
<INTEREST-EXPENSE> 1893 3778
<INTEREST-INCOME-NET> 1764 3432
<LOAN-LOSSES> 2 3
<SECURITIES-GAINS> 0 0
<EXPENSE-OTHER> 1434 2788
<INCOME-PRETAX> 758 1505
<INCOME-PRE-EXTRAORDINARY> 758 1505
<EXTRAORDINARY> 0 0
<CHANGES> 0 0
<NET-INCOME> 477 942
<EPS-PRIMARY> 0.14 0.41
<EPS-DILUTED> 0.14 0.41
<YIELD-ACTUAL> 8.97 8.84
<LOANS-NON> 2638 2638
<LOANS-PAST> 0 0
<LOANS-TROUBLED> 0 0
<LOANS-PROBLEM> 0 0
<ALLOWANCE-OPEN> 1026 1012
<CHARGE-OFFS> 20 37
<RECOVERIES> 103 133
<ALLOWANCE-CLOSE> 1112 1112
<ALLOWANCE-DOMESTIC> 0 0
<ALLOWANCE-FOREIGN> 0 0
<ALLOWANCE-UNALLOCATED> 1112 1112
</TABLE>
