<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
X QUARTERLY REPORT UNDER SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the Quarterly Period ended March 31, 1996
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934 [NO FEE REQUIRED]
For the Transition Period from _________to_________
Commission File Number O-18460
COMMUNITY CAPITAL CORPORATION
(Exact name of registrant as specified in its charter)
South Carolina 57-0866395
(State or other jurisdiction (I.R.S. Employer
of incorporation) Identification No.)
109 Montague Avenue
Greenwood, SC 29646
(Address of principal executive
offices, including zip code)
(864) 941-8200
(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
Indicate the number of shares outstanding of each of the issuer's classes
of common stock as of the date of this filing.
1,160,227 shares of common stock, $1.00 par value
PAGE 1 OF 15
EXHIBIT INDEX ON PAGE 2
<PAGE>
COMMUNITY CAPITAL CORPORATION
INDEX
PART I. Financial Information Page No.
Item 1. Financial Statements (Unaudited)
Condensed Consolidated Balance Sheets - March 31, 1996 and
December 31, 1995............................................ 3
Condensed Consolidated Statements of Income - Three months ended
March 31, 1996 and 1995...................................... 4
Condensed Consolidated Statement of Stockholders' Equity..... 5
Condensed Consolidated Statements of Cash Flows - Three months
ended March 31, 1996 and 1995................................ 6
Notes to Consolidated Financial Statements .................. 7
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations................................ 8-13
PART II. Other Information
Item 6. Exhibits and Reports on Form 8-K......................... 14
(a) Exhibits............................................. 15
(b) Reports on Form 8-K.................................. 14
2
<PAGE>
COMMUNITY CAPITAL CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
March 31, December 31,
1996 1995
ASSETS:
Cash and cash equivalents:
Cash and due from banks $ 3,921,133 $ 2,949,289
Federal funds sold 1,060,000 2,330,000
4,981,133 5,279,289
Securities available-for-sale 23,496,044 22,445,925
Loans receivable 67,206,368 63,203,789
Less allowance for loan losses (717,566) (671,338)
Loans, net 66,488,802 62,532,451
Premises, furniture & equipment, net 3,041,037 2,530,820
Other assets 3,280,762 3,311,492
Total assets $101,287,778 $96,099,977
LIABILITIES AND STOCKHOLDERS' EQUITY:
LIABILITIES:
Deposits:
Non-interest bearing $ 10,368,264 $ 9,447,005
Interest bearing 70,052,970 63,690,569
80,421,234 73,137,574
Federal funds purchased 1,541,000 3,034,000
Advances from Federal Home Loan Bank 5,592,262 6,243,561
Accrued interest and other liabilities 779,585 753,272
Total liabilities 88,334,081 83,168,407
STOCKHOLDERS' EQUITY:
Common stock, $1 par value, 10,000,000 shares
authorized, 1,160,227 and 1,153,060 shares
issued and outstanding at March 31, 1996 and
December 31, 1995, respectively 1,160,227 1,153,060
Surplus 11,302,830 11,254,039
Unrealized gain (loss) on securities
available-for-sale, net of deferred taxes (42,265) 177,297
Retained earnings 532,905 347,174
Total stockholders' equity 12,953,697 12,931,570
Total liabilities and stockholders' equity $101,287,778 $96,099,977
See notes to condensed consolidated financial statements
3
<PAGE>
COMMUNITY CAPITAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
Three Months Ended
March 31,
1996 1995
Interest income:
Loans, including fees $1,499,932 $1,135,335
Securities 339,441 114,265
Other interest income 39,279 1,487
1,878,652 1,251,087
Interest expense:
Deposit accounts 838,174 434,556
FHLB advances 80,478 90,295
Other interest expense 24,898 21,815
943,550 546,666
Net interest income 935,102 704,421
Provision for loan losses 50,000 6,000
Net interest income after provision for loan losses 885,102 698,421
Other operating income:
Service charges 119,405 93,813
Residential mortgage origination fees 60,080 20,048
Gain (loss) on sales of securities 5,182 (21,638)
Other income 131,633 91,033
316,300 183,256
Other operating expenses:
Salaries and benefits 451,772 343,622
Net occupancy expense 140,197 97,306
Other operating expenses 314,566 264,220
906,535 705,148
Income before taxes 294,867 176,529
Income tax provision 109,136 63,278
Net income $185,731 $113,251
Earnings per share:
Primary .14 .16
Fully diluted .14 .16
WEIGHTED AVERAGE COMMON SHARES
AND EQUIVALENTS
Primary 1,318,015 821,104
Fully diluted 1,318,015 821,104
See notes to condensed consolidated financial statements
4
<PAGE>
COMMUNITY CAPITAL CORPORATION
CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY
for the three months ended March 31, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
Unrealized
Gain (loss)
on Securities Total
Common Stock Capital Available-For Retained Stockholders'
Shares Amount Surplus Sale, Net Earnings Equity
<S> <C> <C> <C> <C> <C> <C>
Balance,
December 31, 1995 1,153,060 $1,153,060 $11,254,039 $177,297 $347,174 $12,931,570
Proceeds from
exercise of
stock options 7,167 7,167 48,791 55,958
Change in fair
value for the
period (219,562) (219,562)
Net income
for the period 185,731 185,731
Balance, March
31, 1996 1,160,227 $1,160,227 $11,302,830 $ (42,265) $532,905 $12,953,697
</TABLE>
See notes to condensed consolidated financial statements
5
<PAGE>
COMMUNITY CAPITAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Three Months Ended
March 31,
1996 1995
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 185,731 $ 113,251
Adjustments to reconcile net income to
net cash provided by operating activities:
Depreciation 96,178 68,129
Provision for possible loan losses 50,000 6,000
Amortization of organizational costs 3,406 9,514
Amortization less accretion on investments 17,518 10,201
Amortization of deferred loan costs 31,996 18,272
(Gain) loss on sale of securities (5,182) 21,638
Disbursements for mortgages held for sale (2,662,175) (470,000)
Proceeds of sales of residential mortgages 2,350,675 606,000
Increase in interest receivable 34,584 (21,876)
Increase (decrease) in interest payable 60,693 6,128
Decrease in other assets 119,268 111,174
Decrease in other liabilities (34,380) (64,130)
Net cash provided by operating activities 248,312 414,301
CASH FLOWS FROM INVESTING ACTIVITIES:
Net increase in loans to customers (3,726,847) (1,202,255)
Purchases of securities available-for-sale (6,486,905) (982,689)
Sales of securities available-for-sale 1,251,680 977,890
Maturities of securities available-for-sale 3,826,680 -
Purchases of investments held-to-maturity - (615,118)
Maturities of investments held-to-maturity - 100,000
Purchases of premises and equipment (606,395) (418,286)
Net cash used by investing activities (5,741,787) (2,140,458)
CASH FLOWS FROM FINANCING ACTIVITIES:
Sale of capital stock - 16,450
Stock options exercised 55,958 -
Net increase in deposits accounts 7,283,660 3,093,410
Proceeds from FHLB borrowings 2,700,000 2,250,000
Repayments of FHLB borrowings (3,351,299) (1,556,521)
Proceeds from other borrowings 200,000
Net decrease in Fed Funds purchased (1,493,000) (1,918,000)
Net cash provided by financing activities 5,195,319 2,085,339
NET INCREASE (DECREASE) IN CASH AND EQUIVALENTS (298,156) 359,182
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 5,279,289 3,038,958
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 4,981,133 $ 3,398,140
Cash paid during the period for:
Income taxes $ 17,000 $ 49,222
Interest $ 882,857 $ 540,538
See notes to condensed consolidated financial statements
6
<PAGE>
COMMUNITY CAPITAL CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
Note 1 - Basis of Presentation
The accompanying consolidated financial statements have been prepared in
accordance with the requirements for interim financial statements and,
accordingly, they are condensed and omit disclosures which would
substantially duplicate those contained in the most recent annual report to
stockholders. The financial statements as of March 31, 1996 and for the
interim periods ended March 31, 1996 and 1995 are unaudited and, in the
opinion of management, include all adjustments (consisting of normal
recurring accruals) considered necessary for a fair presentation. The
financial information as of December 31, 1995 has been derived from the
audited financial statements as of that date. For further information, refer
to the financial statements and the notes included in the Company's 1995
Annual Report.
Note 2 - Adoption of Accounting Principle
In October 1995, the Financial Accounting Standards Board issued FASB
Statement No. 123, "Accounting for Stock-Based Compensation," effective for
transactions entered into in fiscal years that begin after December 15,
1995. FASB 123 recommends that companies account for stock compensation on
a fair value based method which requires compensation cost to be measured at
the grant date based on the value of the award and to be recognized over the
service period. As an alternative, companies may continue to record
compensation cost based on the excess, if any, of the quoted market price of
the stock at the grant date (or other measurement date) over the amount an
employee must pay to acquire the stock (APB Opinion No. 25). However, if a
company elects this method, it must include in the financial statements
certain disclosures which reflect pro forma amounts as if the fair value
method had been used.
Management expects to continue accounting for future grants under the
Company's stock option plans based on the provisions of APB Opinion No. 25
with pro forma disclosures in the financial statements as if the fair value
method had been used. A final determination will be made when options are
granted. As permitted by FASB 123, the Company will not apply the
disclosure requirements to complete interim financial statements.
Note 3 - Stockholders' Equity
On April 15, 1996, the Company declared a 5% stock dividend to stockholders
of record as of May 1, 1996, and to be distributed on or before June 30,
1996. In recording the stock dividend, the Company will decrease retained
earnings by an amount equal to the fair value of the additional shares
issued with a corresponding increase to common stock and surplus. Cash will
be paid for fractional shares. Earnings per share information for 1996 and
1995 has been given retroactive recognition for the stock dividend.
The Company has announced plans for a new community bank in Belton,
South Carolina with an expected initial capitalization of $3,500,000.
Management expects the bank to open in the fourth quarter of 1996.
The bank will be 100% owned by the parent Company. The Company
expects to make an offering for the purpose of capitalizing the Belton
Bank and future expansions. The opening of the proposed bank is
contingent upon regulatory approval.
7
<PAGE>
COMMUNITY CAPITAL CORPORATION
Item 2. Management's Discussion and Analysis of Financial Condition
The following is a discussion of the Company's financial condition as of
March 31, 1996 compared to December 31, 1995, and the results of operations
for the three months ended March 31, 1996 compared to the three months ended
March 31 1995. These results reflect the net results of the Clemson Bank
which commenced business on June 22, 1995. These comments should be read in
conjunction with the Company's condensed consolidated financial statements
and accompanying footnotes appearing in this report.
Results of Operations
Net Interest Income
For the three months ended March 31, 1996, net interest income increased
$230,681, or 32.7%, over the quarter ended March 31, 1995. The improvement
is related to an increase in the volume of interest earning assets and is
partially offset by the increase in the rates paid on deposit accounts and a
decline in the rates earned on assets largely due to a decrease in the
percentage of loans to total earning assets. The increase in the volume of
both assets and liabilities was attributable to growth in the branch opened
during February of 1995, the opening of the Clemson Bank in June 1995, as
well as management's ability to strengthen its influence in the Greenwood
market. During the first quarter of 1996, interest income from loans
increased $364,597, or 32.1%, when compared to the same period of 1995.
This corresponds with the 28.8% increase in average loans for the first
quarter of 1996 compared to the first quarter of 1995 due to the continued
demand for loans, particularly in the Greenwood market place. Interest
income on investment securities also increased $225,176, or 197.1%, over the
comparable period of 1995 due to the 192.0% increase in average investment
securities.
Interest expense on liability accounts increased 72.6% due mainly to an
increase in the volume of interest bearing deposits which were used to fund
the growth in loans and investment securities. Interest expense was also
affected by the 84 basis point increase in the rates paid on deposits due to
the general influence of prime rate changes, a competitive pricing program
to compete with other community banks and regional banks, and strategies
implemented by management during 1995 to decrease the loans-to-funds and
loans-to-assets ratios.
The influence of the factors above had the effect of decreasing the interest
rate spread approximately 80 basis points to 3.38% and decreasing the net
yield on earning assets 75 basis points to 4.15% for the first three months
of 1996.
Provision and Allowance for Loan Losses
The provision for loan losses is the charge to operating earnings that
management feels is necessary to maintain the allowance for possible loan
losses at an adequate level. For the three months ended March 31, 1996 and
1995, the provision was $50,000 and $6,000, respectively. The increase does
not reflect a negative trend in nonperforming or classified assets but is
indicative of management's decision to maintain the target ratio of the
allowance for loan losses to total loans. Based on present information,
management believes the allowance for loan losses is adequate at March 31,
1996 to meet presently known and inherent risks in the loan portfolio.
8
<PAGE>
COMMUNITY CAPITAL CORPORATION
Non-Interest Income
Total non-interest income for the three months ended March 31, 1996 was
$316,300, an increase of $133,044, or 72.60% from the comparable period in
1995. The increase is primarily due to an increase in all categories of
other income due to overall growth in the Company.
Non-Interest Expense
Total non-interest expense for the quarter ended March 31, 1996 was
$906,535, an increase of $201,387 or 28.6%, when compared to the first
three months of 1995. The primary component of non-interest expense
is salaries and benefits which was $451,772 and $343,622 for the three
months ended March 31, 1996 and 1995, respectively. The $108,150
increase is attributable to employee additions for the opening of the
Clemson Bank in June 1995 and the opening of a new branch in February
of 1995. Company growth also contributed to increases in net
occupancy and other operating expenses.
Management has been able to control certain costs by providing data
processing and other services to its subsidiaries. These departments
have been moved to the parent company in order to allocate the costs
and in anticipation of additional subsidiaries.
Income Taxes
For both periods presented the effective income tax rate was
approximately 37%. The income tax provision for the three months ended
March 31, 1996 was $109,136 compared to $63,278 for the comparable
1995 period.
Net Income
The combination of the above factors resulted in net income of
$185,731 for the quarter ended March 31, 1996 compared to $113,251 for
the three months ended March 31, 1995.
The development and organization of the Clemson Bank, including
initial operating expenditures, and the Company's expansion strategies
negatively impacted earnings for 1995. During 1996, the Company's
earnings have benefited from the growth, particularly in net interest
income, and from the reduction of the loss at the Clemson Bank.
On May 8, 1996, the Company announced plans to work with a group of
organizers in the capitalization of a community bank in Belton, South
Carolina. The opening of the proposed bank in Belton is contingent
upon regulatory approval. Management expects the opening of the
proposed Belton Bank to negatively impact earnings with an estimated
loss for 1996 in the range of $250,000 to $300,000.
9
<PAGE>
COMMUNITY CAPITAL CORPORATION
Assets and Liabilities
During the first three months of 1996, total assets grew $5,187,801,
or 5.40% when compared to December 31, 1995. Most of the growth was
attributable to the continued demand for loans funded by the
$7,283,660 increase in deposits resulting from aggressive pricing
strategies by management, customer dissatisfaction with larger
regional banks, and the implementation of an employee award plan. The
growth in deposits has also been used to reduce other forms of
borrowings. Advances from the Federal Home Loan Bank and federal
funds purchased and repurchase agreements as of March 31, 1996 have
decreased $651,229 and $1,493,000, respectively, when compared to
December 31, 1995.
Investment Securities
Investment securities increased $1,050,119 during the period in order
to maintain the percentage of investment securities to total assets.
Loans
Demand for quality loans remained stable in the Greenwood and Clemson
marketplaces. Net loans increased $3,956,351 or 6.33% during the
period. Balances within the major loan receivable categories as of
March 31, 1996 and December 31, 1995 are as follows:
March 31, December 31,
1996 1995
Commercial and agricultural $11,766,245 $13,349,226
Real estate 42,989,648 38,295,636
Home equity 7,267,538 6,593,037
Consumer, installment 3,592,979 3,721,774
Consumer, credit card and checking 939,772 868,736
Residential mortgages held for sale 610,500 299,000
Other, net 39,686 76,380
$67,206,368 $63,203,789
Risk Elements in the Loan Portfolio
The following is a summary of risk elements in the loan portfolio:
March 31,
1996 1995
Loans:
Nonaccrual loans $ 121,881 $ 3,076
Accruing loans more than 90
days past due $ 4,913 $ 61,698
Loans identified by the internal
review mechanism:
Criticized $1,034,113 $1,625,465
Classified $1,928,814 $2,169,698
10
<PAGE>
COMMUNITY CAPITAL CORPORATION
Loans - continued
Activity in the Allowance for Loan Losses
is as follows:
1996 1995
Balance, January 1, $ 671,338 $ 580,528
Provision for loan losses for the period 50,000 6,000
Net loans (charged off) recovered for
the period (3,772) (4,219)
Balance, end of period $ 717,566 $ 582,309
Gross loans outstanding, end of period $67,206,368 $51,628,304
Allowance for Loan Losses to loans
outstanding 1.07% 1.13%
Premises and Equipment
The acquisition of a new operations center for approximately $500,000
and renovations to the new facility were the principal contributor to
the $510,217 increase in premises and equipment.
Deposits
Total deposits increased $7,283,660 or 10.0% from December 31, 1995.
Expressed in percentages, non-interest bearing deposits increased 9.8%
and interest bearing deposits increased 10.0%.
Balances within the major deposit categories as of March 31, 1996 and
December 31, 1995 are as follows:
March 31, December 31,
1996 1995
Non-interest bearing demand deposits $10,368,264 $ 9,447,005
Interest bearing demand deposits 7,987,630 8,028,202
Savings deposits 21,564,248 17,419,236
Certificates of deposit 40,501,092 38,243,131
$80,421,234 $73,137,574
11
<PAGE>
COMMUNITY CAPITAL CORPORATION
Liquidity
During 1995, management implemented strategies to decrease the
loans-to-assets and loans-to-funds ratios. The Company continues to
operate within the recommendations of the Board of Directors with a
loans-to-assets ratio of 65.6% and a loans-to-funds ratio of 75.9% as of
March 31, 1996. Although the amount of advances from the FHLB has
decreased $651,229 from the December 31, 1995 balance of $6,243,561,
management expects to continue using these advances as a source of
funding. Additionally, the Company has approximately $9,500,000 of
unused lines of credit for federal funds purchases available to it. Due
to the continued deposit growth, the Company has decreased its purchases
of federal funds by $1,493,000 since December 31, 1995.
Capital Resources
Stockholders' equity was increased by net income of $185,731 during
the quarter ended March 31, 1996. Also, 7,167 stock options were
exercised under the Company's Employee Incentive Stock Option Plan
resulting in an increase to equity of $55,958. Due to changes in the
market rates of interest, the fair value of the Company's securities
available for sale decreased, which had the effect of decreasing
stockholders' equity by $219,562 net of the deferred tax effects.
Bank holding companies, such as the Company, and their bank
subsidiaries are required by banking regulators to meet certain
minimum levels of capital adequacy. These are expressed in the form
of certain ratios. Capital is separated into Tier I capital
(essentially common stockholders' equity less intangible assets) and
Tier II capital (essentially the allowance for loan losses limited to
1.25% of risk-weighted assets). The first two ratios, which are based
on the degree of credit risk in the company's assets, provide the
weighting of assets based on assigned risk factors and include off-balance
sheet items such as loan commitments and stand-by letters of
credit. The ratio of Tier I capital to risk-weighted assets must be
at least 4.0% and the ratio of total capital (Tier I capital plus Tier
2 capital) to risk-weighted assets must be at least 8.0%. The capital
leverage ratio supplements the risk-based capital guidelines. Banks
and bank holding companies are required to maintain a minimum ratio of
Tier I capital to adjusted quarterly average total assets of 3.0%.
The following table summarizes the Company's risk-based capital at
March 31, 1996:
Risk based capital ratios
Tier I 17.75%
Total capital 18.73%
Leverage ratio 12.83%
The Company anticipates the construction of a permanent facility for
The Clemson Bank during 1996. The cost of the premises and equipment
is expected to be in the range of $1,300,000 to $1,500,000.
12
<PAGE>
COMMUNITY CAPITAL CORPORATION
Regulatory Matters
The management of the Company is not aware of any current
recommendations by regulatory authorities which, if they were to be
implemented, would have a material effect on liquidity, capital
resources, or operations.
Subsequent Events
As discussed previously, the Company has announced plans for a new
bank in Belton, South Carolina with an initial capitalization of
$3,500,000. Management expects the Bank to open in the fourth quarter
of 1996. The bank will be 100% owned by the parent Company. The
Company expects to make an offering of no less than $10,000,000 of its
common stock for the purpose of capitalizing the Belton Bank and
future expansions.
13
<PAGE>
COMMUNITY CAPITAL CORPORATION
PART II - OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
I. Earnings per share computations
(b) Reports on Form 8-K - No reports on Form 8-K were filed
during the three months ended March 31, 1996
Items 1 through 5 are not applicable.
SIGNATURE
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.
COMMUNITY CAPITAL CORPORATION
By:
William G. Stevens
President & Chief Executive Officer
Date: May 13, 1996 By:
James H. Stark
Chief Financial Officer
14
<PAGE>
EXHIBIT I
COMMUNITY CAPITAL CORPORATION
EARNINGS PER SHARE
Three Months Ended
Primary and Fully Diluted March 31,
Earnings Per Share
1996 1995
Net income $ 185,731 $113,251
Add: Interest revenue
from assumed purchase
of government securities,
net of tax - 14,224
Adjusted net income for
fully diluted shares $ 185,731 $127,475
Weighted average number
of common shares
outstanding (1) 1,217,068 631,752
Dilutive stock
equivalents (1)(2) 100,947 189,352
Total stock and
equivalents 1,318,015 821,104
Earnings per share of
common and equivalent
share $ .14 $ .16
(1) Restated for the effects of the 5% stock dividend in June of 1995
and the 5% stock dividend declared April 15, 1996.
(2) Computed using the Treasury Stock Aggregate Method modified for
the 20% limitation.
15
<TABLE> <S> <C>
<ARTICLE> 9
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> MAR-31-1996
<CASH> 3,921,133
<INT-BEARING-DEPOSITS> 0
<FED-FUNDS-SOLD> 1,060,000
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 23,496,044
<INVESTMENTS-CARRYING> 23,496,044
<INVESTMENTS-MARKET> 23,496,044
<LOANS> 67,206,368
<ALLOWANCE> 717,566
<TOTAL-ASSETS> 101,287,778
<DEPOSITS> 80,421,234
<SHORT-TERM> 7,133,262
<LIABILITIES-OTHER> 779,585
<LONG-TERM> 0
1,160,227
0
<COMMON> 0
<OTHER-SE> 11,793,470
<TOTAL-LIABILITIES-AND-EQUITY> 101,287,778
<INTEREST-LOAN> 1,499,932
<INTEREST-INVEST> 339,441
<INTEREST-OTHER> 39,279
<INTEREST-TOTAL> 1,878,652
<INTEREST-DEPOSIT> 838,174
<INTEREST-EXPENSE> 943,550
<INTEREST-INCOME-NET> 935,102
<LOAN-LOSSES> 50,000
<SECURITIES-GAINS> 5,182
<EXPENSE-OTHER> 906,535
<INCOME-PRETAX> 294,867
<INCOME-PRE-EXTRAORDINARY> 294,867
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 185,731
<EPS-PRIMARY> .14
<EPS-DILUTED> .14
<YIELD-ACTUAL> 4.15
<LOANS-NON> 121,881
<LOANS-PAST> 4,913
<LOANS-TROUBLED> 1,928,814
<LOANS-PROBLEM> 1,034,113
<ALLOWANCE-OPEN> 671,338
<CHARGE-OFFS> 3,772
<RECOVERIES> 0
<ALLOWANCE-CLOSE> 717,566
<ALLOWANCE-DOMESTIC> 717,566
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
