SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-QSB
- ----------------------------------
QUARTERLY REPORT UNDER SECTION 13 OR 15 (d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 1997.
Commission File No. 0-27448
GOLDEN ISLES FINANCIAL HOLDINGS, INC.
(Exact name of small business issuer as specified in its charter)
Georgia 58-1756713
(State of Incorporation) (I.R.S. Employer Identification No.)
3811 Frederica Road,
St. Simons Island, Georgia 31522
(Address of Principal Executive Offices)
(912) 638-0667
(Issuer's Telephone Number, Including Area Code)
200 Plantation Chase, St. Simons Island., Georgia 31522
(Former Name, Former Address and Former Fiscal Year, if Changed
Since Last Report)
Check whether the issuer (1) 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 issuer 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 common equity as
of the latest practicable date.
Common Stock, no par value per share: 2,344,303 shares issued and
outstanding as of July 18, 1996.
Transitional Small Business Disclosure Format:
Yes No X
<PART>
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
Golden Isles Financial Holdings, Inc.
St. Simons Island, Georgia
Consolidated Balance Sheets
June 30, December 31,
1997 1996
ASSETS (Unaudited) (Audited)
Cash and due from banks $ 2,763,445 $ 4,250,836
Federal funds sold 4,760,000 8,640,000
------------ ----------
Total cash and cash equivalents $ 7,523,445 $ 12,890,836
Investment securities:
Securities available-for-sale,
at estimated market values 14,978,625 8,025,653
Securities held-to-maturity
(approximate estimated market
value of $1,673,029 (06-30-97)
and $2,031,272 (12-31-96) 1,694,637 2,053,844
Loans, net 82,268,693 76,524,126
Loans held-for-sale 166,081 6,323,719
Property and equipment, net 3,924,438 4,135,683
Other assets 2,110,645 2,693,703
---------- ----------
Total Assets $112,666,564 $112,647,564
----------- -----------
----------- -----------
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Deposits
Non-interest bearing deposits $ 8,169,144 $ 7,153,576
Interest bearing deposits 80,801,083 75,654,592
----------- -----------
Total deposits $ 88,970,227 $82,808,168
----------- -----------
Notes payable 9,368,204 14,135,473
Federal Home Loan Bank borrowings 3,387,007 4,444,643
Other liabilities 976,461 1,510,105
----------- -----------
Total Liabilities $102,701,899 $102,898,389
----------- -----------
Commitments and contingencies
Shareholders' Equity:
Common stock, no par value
15 million shares authorized,
2,344,302 shares (06-30-97)
2,344,302 (12-31-96) shares
issued and outstanding $ 1,094,338 $ 1,094,338
Paid-in-capital 10,006,471 9,972,568
Retained (deficit) (1,156,372) (1,348,848)
Unrealized gain on fair value
of securities available-for-sale 20,228 31,117
---------- -----------
Total Shareholders' Equity $ 9,964,665 $ 9,749,175
----------- -----------
Total Liabilities and
Shareholders' Equity $112,666,564 $112,647,564
----------- -----------
----------- -----------
Refer to notes to the financial statements.
<PAGE>
Golden Isles Financial Holdings, Inc.
St. Simons Island, Georgia
Consolidated Income Statements
(Unaudited)
Three Months Ended
June 30,
1997 1996
Interest income $ 2,634,599 $2,371,417
Interest expense 1,337,446 1,207,838
---------- ---------
Net interest income 1,297,153 1,163,579
Provision for possible loan losses 129,500 168,051
---------- ---------
Net interest income after provision
for possible loan losses 1,167,653 995,528
---------- ---------
Other income:
Fee income from mortgage subsidiary -- 485,820
Other income 470,605 293,349
---------- ---------
Total other income 470,605 779,169
---------- ---------
Salaries and benefits 623,698 1,134,575
Depreciation and amortization 122,284 95,513
Regulatory fees and assessments 29,102 4,581
Supplies and printing 31,117 59,669
Legal & professional 140,090 44,606
Advertising 29,618 92,742
Other operating expenses 491,945 429,882
---------- ---------
Total operating expenses 1,467,854 1,861,568
---------- ---------
Net income/(loss) before taxes $ 170,404 $ (86,871)
Income taxes/(benefit) 36,129 (17,126)
--------- ---------
Net income/(loss) $ 134,275 $ (69,745)
--------- ---------
--------- ---------
Income/(loss) per share $ .06 $ (.03)
--------- ---------
--------- ---------
Refer to notes to the financial statements.
<PAGE>
Golden Isles Financial Holdings, Inc.
St. Simons Island, Georgia
Consolidated Income Statements
(Unaudited)
Six Months Ended
June 30,
1997 1996
Interest income $ 5,183,905 $4,631,957
Interest expense 2,691,707 2,316,587
--------- ---------
Net interest income 2,492,198 2,315,370
Provision for possible loan losses 193,100 331,752
--------- ---------
Net interest income after provision
for possible loan losses $ 2,299,098 $1,983,618
--------- ---------
Other income:
Fee income from mortgage subsidiary $ - - $ 848,239
Other income 1,012,117 500,581
--------- ---------
Total other income $ 1,012,117 $1,348,820
--------- ---------
Salaries and benefits $ 1,435,843 $2,042,685
Depreciation and amortization 194,142 175,594
Regulatory fees and assessments 43,335 9,997
Supplies and printing 71,470 106,250
Legal & professional 289,304 80,981
Advertising 54,231 154,248
Other operating expenses 906,538 872,296
--------- ----------
Total operating expenses 2,994,863 3,442,051
--------- ----------
Net income\(loss) before taxes 316,352 (109,613)
Income taxes 123,876 36,710
--------- ----------
Net income\(loss) $ 192,476 $ (146,323)
--------- ----------
--------- ----------
Income\(loss) per share $ .08 $ (.06)
--------- ----------
--------- ----------
Refer to notes to the financial statements.
<PAGE>
Golden Isles Financial Holdings, Inc.
St. Simons Island, Georgia
Consolidated Statements of Cash Flows
(Unaudited)
Six Months Ended
June 30,
1997 1996
Cash flows from operating activities: $ 603,014 $ 660,682
---------- -----------
Cash flows from Investing Activities:
(Incr)/decr in loans held-for-sale $ 6,157,638 $ (4,676,931)
(Purch)/Sale of fixed assets 43,221 (1,209,045)
(Increase) in loans (5,937,667) (15,165,620)
Securities - available-for-sale
Maturity and paydowns 540,807 1,724,521
Sale of securities 500,000 - -
Purchase of securities (8,004,668) (2,506,480)
Securities - held-to-maturity
Purchase of securities - - - -
Maturity and paydowns 359,207 94,431
--------- ------------
Net cash used in investing activities $( 6,341,462) $(21,739,124)
--------- ------------
Cash flows from Financing Activities:
Increase in federal funds purchased $ - - $ - -
Incr/(decr) in various borrowings (5,824,905) 18,648,755
Sale of stock/option amortization 33,903 86,894
Increase in deposits 6,162,059 3,661,574
--------- ----------
Cash provided from financing
activities $ 371,057 $ 22,397,223
--------- ----------
Net decrease in cash and cash
equivalents $ (5,367,391) $ 1,318,781
Cash and cash equivalents,
beginning of period 12,890,836 8,577,228
---------- ----------
Cash and cash equivalents, end of
period $ 7,523,445 $ 9,896,009
--------- ----------
--------- ----------
Refer to notes to the financial statements.
<PAGE>
Golden Isles Financial Holdings, Inc.
St. Simons Island, Georgia
Notes to Financial Statements (Unaudited)
June 30, 1997
Note 1 - Basis of Presentation
The accompanying financial statements have been prepared in
accordance with generally accepted accounting principles for
interim financial information and with the instructions to Form
10-QSB. Accordingly, they do not include all the information and
footnotes required by generally accepted accounting principles for
complete financial statements. In the opinion of management, all
adjustments (consisting of normal recurring accruals) considered
necessary for a fair presentation have been included. Operating
results for the six-month period ended June 30, 1997 are not
necessarily indicative of the results that may be expected for the
year ending December 31, 1997. For further information, refer to
the financial statements and footnotes thereto included in Form
10-KSB for the year ended December 31, 1996.
Note 2 - Summary of Significant Accounting Policies
Basis of Presentation and Reclassification. The consolidated
financial statements include the accounts of the parent company
and the Subsidiaries. All significant intercompany accounts and
transactions have been eliminated in consolidation. Certain prior
year amounts have been reclassified to conform to the current year
presentation.
Basis of Accounting. The accounting and reporting policies of
GIFH conform to generally accepted accounting principles and to
general practices in the banking industry. GIFH uses the accrual
basis of accounting by recognizing revenues when earned and
expenses in the period incurred, without regard to the time of
receipt or payment of cash.
Investment Securities. GIFH adopted Statement of Financial
Accounting Standards No. 115, Accounting for Certain Investment in
Debt and Equity Securities (SFAS 115) on January 1, 1994. SFAS
115 requires investments in equity and debt securities to be
classified into three categories:
1. Held-to-maturity securities: These are securities which
GIFH has the ability and intent to hold until maturity.
These securities are stated at cost, adjusted for
amortization of premiums and the accretion of discounts.
2. Trading securities: These are securities which are bought
and held principally for the purpose of selling in the near
future. Trading securities are reported at fair market
value, and related unrealized gains and losses are
recognized in the income statement.
<PAGE>
Golden Isles Financial Holdings, Inc.
St. Simons Island, Georgia
Notes to Financial Statements (Unaudited)
June 30, 1997
3. Available-for-sale securities: These are securities which
are not classified as either held-to-maturity or as trading
securities. These securities are reported at fair market
value. Unrealized gains and losses are reported, net of
tax, as separate components of shareholders' equity.
Unrealized gains and losses are excluded from the income
statement.
Loans, Interest and Fee Income on Loans. Loans are stated at the
principal balance outstanding. Unearned discount, unamortized
loan fees and the allowance for possible loan losses are deducted
from total loans in the statement of condition. Interest income
is recognized over the term of the loan based on the principal
amount outstanding. Points on real estate loans are taken into
income to the extent they represent the direct cost of initiating
a loan. The amounts in excess of direct costs are deferred and
amortized over the expected life of the loan.
Loans are generally placed on non-accrual status when principal or
interest becomes ninety days past due, or when payment in full is
not anticipated. When a loan is placed on non-accrual status,
interest accrued but not received is generally reversed against
interest income. If collectibility is in doubt, cash receipts on
non-accrual loans are not recorded as interest income, but are
used to reduce principal.
Allowance for Possible Loan Losses. The provisions for loan
losses charged to operating expense reflect the amount deemed
appropriate by management to establish an adequate reserve to meet
the present and foreseeable risk characteristics of the current
loan portfolio. Management's judgement is based on periodic and
regular evaluation of individual loans, the overall risk
characteristics of the various portfolio segments, past experience
with losses and prevailing and anticipated economic conditions.
Loans which are determined to be uncollectible are charged against
the allowance. Provisions for loan losses and recoveries on loans
previously charged-off are added to the allowance.
GIFH adopted Statement of Financial Accounting Standards No.114,
Accounting by Creditors for Impairment of a Loan, (SFAS 114) on
January 1, 1995. Under the new standard, a loan is considered
impaired, based on current information and events, if it is
probable that GIFH will be unable to collect the scheduled
payments of principal or interest when due according to the
contractual terms of the loan agreement. The measurement of
impaired loans is generally on the present value of expected
future cash flows discounted at the historical effective interest
rate. All collateral-dependent loans, however, are measured for
impairment based on the fair value of the
<PAGE>
Golden Isles Financial Holdings, Inc.
St. Simons Island, Georgia
Notes to Financial Statements (Unaudited)
June 30, 1997
collateral. The adoption of SFAS 114 resulted in no change to the
allowance for credit losses at January 1, 1995.
In October, 1994, FASB issued Statement of Financial Accounting
Standards No. 118, Accounting by Creditors for Impairment of a
Loan - Income Recognition and Disclosure (SFAS 118). SFAS 118
amends SFAS 114 to allow a creditor to use existing methods for
recognizing interest income on an impaired loan, rather than the
methods prescribed in SFAS 114.
In May 1995, FASB issued Statement of Financial Accounting
Standards No. 122, Accounting for Mortgage Servicing Rights, (SFAS
122). SFAS 122 amends SFAS 65, Accounting for Certain Mortgage
Banking Activities, to require that a mortgage banking enterprise
recognize as an asset rights to service mortgage loans for others
regardless of the manner in which those servicing rights are
acquired. It also requires an enterprise to assess its
capitalized mortgage servicing rights for impairment based on the
fair value of those rights. In assessing impairment, Management
believes that the adoption of SFAS 122 will not have a material
impact on the financial position of GIFH.
Property and Equipment. Building, furniture and equipment are
stated at cost, net of accumulated depreciation. Depreciation is
computed using the straight line method over the estimated useful
lives of the related assets. Maintenance and repairs are charged
to operations, while major improvements are capitalized. Upon
retirement, sale or other disposition of property and equipment,
the cost and accumulated depreciation are eliminated from the
accounts, and gain or loss is included in income from operations.
Income Taxes. The consolidated financial statements have been
prepared on the accrual basis. When income and expenses are
recognized in different periods for financial reporting purposes and
for purposes of computing income taxes currently payable, deferred
taxes are provided on such temporary differences.
Effective January 1, 1993, GIFH adopted Statement of Financial
Accounting Standards No. 109, Accounting for Income Taxes (SFAS
109). Under SFAS 109, deferred tax assets and liabilities are
recognized for the expected future tax consequences of events that
have been recognized in the financial statements or tax return.
Deferred tax assets and liabilities are measured using the enacted
tax rates expected to apply to taxable income in the years in
which those temporary differences are expected to be realized or
settled.
Statement of Cash Flows. For purposes of reporting cash flows,
cash and cash equivalents include cash on hand, amounts due from banks
<PAGE>
Golden Isles Financial Holdings, Inc.
St. Simons Island, Georgia
Notes to Financial Statements (Unaudited)
June 30, 1997
and federal funds sold. Generally, federal funds are purchased or
sold for one day periods.
Net Income/(Loss) Per Share. Net income/(loss) per share was
computed by dividing net income by the weighted average number of
shares outstanding for each period. Common stock equivalents in
the form of outstanding stock options were included in the
determination of the weighted average number of shares outstanding
only if they were dilutive. Income per share of $.08 for the six-month
period ended June 30, 1997 may not be indicative of
projected earnings/(losses) for the year ending December 31, 1997.
ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS.
Liquidity and Sources of Capital
Golden Isles Financial Holdings, Inc., St. Simons Island, Georgia
(GIFH) was incorporated under the laws of the State of Georgia
in 1987 as a holding company for a proposed de novo bank, The
First Bank of Brunswick, Brunswick, Georgia (the Bank). Upon
commencement of the Bank's principal operations on July 2, 1990,
GIFH acquired 100 percent of the Bank's voting stock by injecting
$4.5 million into the Bank's capital accounts. Subsequently, an
additional $1.1 million was injected into the Bank's capital
accounts. Deposits at the Bank are each insured up to $100,000 by
the Federal Deposit Insurance Corporation.
In late 1993, GIFH formed two additional subsidiaries, First
Credit Service Corporation, Brunswick, Georgia (FCC) and First
Bank Mortgage Corporation, Brunswick, Georgia (FBMC). FCC
engages in consumer finance and credit related insurance
activities. FBMC ceased operations as of April 30, 1997. From
inception to June 30, 1997, GIFH injected $1,785,000 and
$2,875,000 into the capital accounts of FCC and FBMC,
respectively. GIFH owns 100 percent of the voting shares of the
Bank, FCC and FBMC.
In the following discussion, unless any information is
specifically identified as reflecting the financial condition of
the Bank, FCC or FBMC, it is intended to reflect the financial
condition of GIFH on a consolidated basis.
Liquidity is the company's ability to meet all deposit withdrawals
immediately, while also providing for the credit needs of
customers. The June 30,1997, financial statements evidence a fair
liquidity position as total cash and cash equivalents amounted to
$7.5 million, representing 6.7% of total assets. Investment
securities amounted to $16.6 million, representing 14.8% of total
assets; these securities provide a secondary source of liquidity
since they can be converted into cash in a timely manner. Note
that the Company's ability to maintain and expand its deposit base
and borrowing capabilities are a source of liquidity. For the
six-month period ended June 30, 1997, total deposits increased
from $82.8 million to $89.0 million, representing an increase of
7.5%. Borrowings, have declined by $5.8 million since December 31,
1996, mainly due to the pay-off of FBMC's warehouse line. GIFH's
management closely monitors and maintains appropriate levels of
interest earning assets and interest bearing liabilities, so that
maturities of assets are such that adequate funds are provided to
meet customer withdrawals and loan demand. There are no trends,
demands, commitments, events or uncertainties that will result in
or are reasonably likely to result in GIFH's liquidity increasing
or decreasing in any material way.
Effective March 29, 1997, the Company entered into a credit
facility with American Banking Company, Moultrie, Georgia. Under
the facility the Company borrowed $3,500,000 as a term loan to be
used for repayment of the line of credit at Southeastern Bank, and
has up to $1,000,000 as a revolving line of credit to be used for
working capital. The interest rate with respect to both loans is
.25% over the Sun Trust Bank, Atlanta prime rate. The term loan
calls for interest only payments over five additional years,
principal being repaid on the basis of a ten year amortization and
semi-annual payments of $175,000. The revolving line of credit
matures after one year at which time the outstanding principal
would be added to the term loan and amortized as part of such
loan. The loans are secured by a pledge of the stock of the Bank
owned by the Company.
On July 7, 1997, the Company sold its headquarters at 200
Plantation Chase, St. Simons Island, and moved its offices to the
second floor of the Bank branch on St. Simons Island. Proceeds
from the sale were used to pay off the note on the property.
The Bank maintains an adequate level of capitalization as measured
by the following capital ratios and the respective minimum capital
requirements by the Bank's primary regulators.
Bank's Minimum required by
June 30, 1997 regulatory authorities
Leverage ratio 7.7% 4.0%
Risk weighted ratio 11.7% 8.0%
Note that with respect to the leverage ratio, the regulators
expect a minimum of 5.0 percent to 6.0 percent ratio for banks
that are not rated CAMEL 1. Although the Bank is not rated CAMEL
1, its leverage ratio of 7.7 percent is well above the required
minimum.
Results of Operations
Net income for the six-month period ended June 30, 1997 amounted
to $192,476, or $.08 per share. For the six-month period ended
June 30, 1996 net loss amounted to $(146,323), or $(.06) per
share. The primary reason for the increase in earnings is
attributed to the closing of FBMC and improved earnings at the
Bank. FCC was also profitable for the second quarter of 1997.
Operating expenses for the first half of 1997 were almost $450,000
less than the same period of 1996. Salaries and benefits were
down 30% from the same time last year. Legal, professional and
other expenses were higher due to the inclusion of costs related
to the March 11, 1997, Special Meeting of Shareholders. Several
other items are of interest when compared to the results of the
same six months of 1996.
a. Net interest income, which represents the difference between
interest received on interest earning assets and interest
paid on interest bearing liabilities, has increased from
$2,315,370 for the six-month period ended June 30, 1996 to
$2,492,198 for the same period one year later, representing
an increase of $176,828, or 7.6%. This increase was
attained because total interest earning assets increased
from $86.8 million at June 30,1996, to $104.4 million at
June 30,1997.
b. The net interest yield, defined as net interest income
divided by interest earning assets, has decreased from 5.3%
for the six-month period ended June 30,1996, to 4.8% for the
six-month period ended June 30, 1997. This decrease is
attributable to the liquidation of the FBMC Prime + 2%
warehouse portfolio at the Bank.
c. Other income for the six-month period ended June 30, 1997
and 1996 amounted to $1,102,117 and $1,348,820 respectively.
The decrease in other income is due primarily to the loss of
fee income and other charges that were earned through FBMC.
d. Operating expenses for the six-month period ended June 30,
1997 and 1996 amounted to $2,994,863 and $3,442,051
respectively, representing a decrease of $447,188, or 13%.
Operating expenses represented an annualized 5.3% and 6.1%
of total assets as of June 30, 1997 and 1996, respectively.
As noted above, the first half of 1997 operating expenses
include one time costs associated with the March 11, 1997,
Special Meeting.
e. The provision for loan losses increased from $1,010,294 for
the six-month period ended June 30, 1996 to $1,476,576 for
the six-month period ended June 30, 1997. The allowance for
loan losses as a percentage of gross loans increased to 1.8%
from 1.4% this same time last year. Management considers
the allowance for loan losses to be adequate and sufficient
to absorb possible future losses; however, there can be no
assurance that charge-offs in future periods will not exceed
the allowance for loan losses or that additional provisions
to the allowance will not be required.
For the three-month period ended June 30, 1997, net income
amounted to $134,275, or $.06 per share. For the same period, one
year earlier, net loss amounted to $(69,745), or $(.03) per share.
A year to date tax benefit of $196,850 has been booked through
June 1997. If earnings continue to exceed losses, some or all of
the benefit could be reversed.
GIFH is not aware of any current recommendation by the regulatory
authorities which, if they were to be implemented, would have a
material effect on GIFH's liquidity, capital resources, or results
of operations.
<PAGE>
PART II - OTHER INFORMATION
Item 1. Legal Proceedings. As of June 30, 1997, there are no
material pending legal proceedings to which the Company or any of
its subsidiaries is a party or of which any of their property is
the subject.
Item 2. Changes in Securities.
(a) None.
(b) None.
Item 3. Defaults Upon Senior Securities. None.
Item 4. Submission of Matters to a Vote of Security Holders. An
Annual Meeting of Stockholders was held on June 23, 1997, at which
the election of the Board of Directors was submitted to a vote of
security holders. The results of the election were as follows:
BROKER
WITH ABSTEN- NON-
NOMINEE FOR AGAINST HELD TIONS VOTES
C. Ray Acosta 1,375,226 46,064 492 20,087 -0-
James M. Fiveash 1,375,226 46,064 492 20,087 -0-
L. McRee Harden 1,375,226 46,064 20 20,087 -0-
Michael D. Hodges 1,375,226 46,064 250 20,087 -0-
Russell C.
Jacobs, Jr. 1,375,226 46,064 0 20,087 -0-
C. Kermit Keenum 1,375,226 46,064 250 20,087 -0-
Jimmy D. Veal 1,375,226 46,064 0 20,087 -0-
J. Thomas
Whelchel 1,375,226 46,064 458 20,087 -0-
Item 5. Other Information. - None
Item 6. Exhibits and Reports on Form 8-K.
(a) Exhibits
Exhibit No: Description
27 Financial Data Schedule
(b) Reports on Form 8-K - There were no reports
on Form 8-K filed during the quarter ended June 30,
1997.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its
behalf by the undersigned, thereunto duly authorized.
GOLDEN ISLES FINANCIAL HOLDINGS, INC.
(Registrant)
Date: August 14, 1997
By: /s/ J. Thomas Whelchel
J. Thomas Whelchel
Chairman
<PAGE>
INDEX TO EXHIBITS
Exhibit Sequential
Number Description Page Number
27 Financial Data Schedule 18
<TABLE> <S> <C>
<ARTICLE> 9
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-30-1997
<PERIOD-END> JUN-30-1997
<CASH> 2,763,445
<INT-BEARING-DEPOSITS> 537,262
<FED-FUNDS-SOLD> 4,760,000
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 14,978,625
<INVESTMENTS-CARRYING> 1,694,637
<INVESTMENTS-MARKET> 1,673,029
<LOANS> 0
<ALLOWANCE> 1,476,576
<TOTAL-ASSETS> 112,666,564
<DEPOSITS> 88,970,227
<SHORT-TERM> 469,000
<LIABILITIES-OTHER> 976,461
<LONG-TERM> 12,755,211
0
0
<COMMON> 1,094,338
<OTHER-SE> 8,870,327
<TOTAL-LIABILITIES-AND-EQUITY> 112,666,564
<INTEREST-LOAN> 4,474,067
<INTEREST-INVEST> 541,352
<INTEREST-OTHER> 168,486
<INTEREST-TOTAL> 5,183,905
<INTEREST-DEPOSIT> 2,024,199
<INTEREST-EXPENSE> 2,691,707
<INTEREST-INCOME-NET> 2,492,198
<LOAN-LOSSES> 193,100
<SECURITIES-GAINS> (1,096)
<EXPENSE-OTHER> 2,994,863
<INCOME-PRETAX> 316,352
<INCOME-PRE-EXTRAORDINARY> 316,352
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 192,476
<EPS-PRIMARY> .08
<EPS-DILUTED> .08
<YIELD-ACTUAL> 4.8
<LOANS-NON> 210,420
<LOANS-PAST> 325
<LOANS-TROUBLED> 268,525
<LOANS-PROBLEM> 1,886,402
<ALLOWANCE-OPEN> 1,445,365
<CHARGE-OFFS> 192,387
<RECOVERIES> 30,500
<ALLOWANCE-CLOSE> 1,476,576
<ALLOWANCE-DOMESTIC> 944,311
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 532,265
</TABLE>
