SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
(Mark One)
X QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2000
OR
_ TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE
EXCHANGE ACT
For the transition period from _____________ to ____________
Commission file number 0-18488
FIRST CHEROKEE BANCSHARES, INC.
(Exact name of registrant as specified in its charter)
GEORGIA 58-1807887
(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification No.)
9860 Highway 92, Woodstock, Georgia 30188
(Address of principal executive offices)
770-591-9000
(Issuer's telephone number)
Check whether the issuer (1) filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such
shorter period that the registrant was required to file such reports), and (2)
has been subject to such filing requirements for the past 90 days.
X Yes No
The number of shares outstanding of registrant's common stock par value
$1.00 per share at March 31, 2000 was 774,225 shares.
Traditional Small Business Disclosure Format (check one): ___ Yes X No
<PAGE>
First Cherokee Bancshares, Inc.
Quarterly Report on Form 10-QSB
For the Quarter Ended March 31, 2000
Index
-----
Page No.
Part I. Financial Information --------
Consolidated Financial Statements (unaudited)
Consolidated Balance Sheet at March 31, 2000 2
Consolidated Statements of Earnings (unaudited)
for the three months ended March 31, 2000 and 1999 3
Consolidated Statements of Comprehensive Income (unaudited)
for the three months ended March 31, 2000 and 1999 4
Consolidated Statements of Cash Flows (unaudited)
for the three months ended March 31, 2000 and 1999 5
Notes to Consolidated Financial Statements (unaudited) 6
Item 2. Management's Discussion and Analysis of Financial Condition 7
and Results of Operations
Part II. Other Information
Item 1. Legal Proceedings 13
Item 2. Changes in Securities and Use of Proceeds 13
Item 3. Defaults Upon Senior Securities 13
Item 4. Submission of Matters to a Vote of Security Holders 13
Item 5. Other Information 13
Item 6. Exhibits and Reports on Form 8-K 13
Item 7. Signatures 15
<PAGE>
First Cherokee Bancshares, Inc.
Consolidated Balance Sheet
March 31, 2000
(Unaudited)
Assets
------
Cash & due from banks, including $1,514,589
bearing interest $5,962,660
Federal funds sold 0
-
Total cash & cash equivalents 5,962,660
Investment securities available for sale,
at fair value 513,193
Other investments 1,058,900
Loans, less allowance for loan losses
of $1,487,600 121,943,413
Premises and equipment, net 4,136,417
Accrued interest receivable and other assets 6,550,609
---------
Total Assets $140,165,192
============
Liabilities and Stockholders' Equity
------------------------------------
Liabilities:
Deposits:
Interest-bearing deposits $103,159,175
Noninterest-bearing deposits 19,850,866
----------
Total deposits 123,010,041
Note payable and other borrowings 5,390,000
Accrued interest payable and other liabilities 1,161,847
---------
Total Liabilities 129,561,888
Stockholders' Equity:
Common stock ($1 par value; 10,000,000
shares authorized, 774,225 shares issued) 774,225
Additional paid-in-capital 6,896,897
Retained earnings 3,456,728
Treasury Stock (28,276 shares acquired
at cost) (516,688)
Accumulated other comprehensive
income, net of tax (7,858)
-------
Total Stockholders' Equity 10,603,304
----------
Total Liabilities and Stockholders' Equity $140,165,192
============
See notes to consolidated financial statements
<PAGE>
First Cherokee Bancshares, Inc.
Consolidated Statements of Earnings
For the three months ended March 31,
(Unaudited)
Interest income: 2000 1999
---- ----
Interest and fees on loans $2,975,461 $2,237,192
Interest on federal funds sold/overnight funds 7,483 11,116
Interest and dividends on investments 26,652 121,944
------ -------
Total interest income 3,009,596 2,370,252
Interest expense:
Interest on deposits 1,264,726 1,176,675
Interest on note payable and other borrowings 80,404 0
------ -
Total interest expense 1,345,130 1,176,675
Net interest income 1,664,466 1,193,577
Provision for loan losses 171,590 83,368
Net interest income after provision ------- ------
for loan losses 1,492,876 1,110,209
Other income:
Gain on sales of loans 162,394 251,192
Service charges on deposit accounts
and other income 320,924 285,568
------- -------
Total other income 483,318 536,760
------- -------
Other expense:
Salaries and employee benefits 830,773 764,620
Occupancy 219,908 206,552
Other operating expense 480,666 478,350
------- -------
Total other expense 1,531,347 1,449,522
--------- ---------
Earnings before income taxes 444,847 197,447
Income Tax expense 179,000 79,080
------- ------
Net earnings $265,847 $118,367
======== ========
Basic earnings per share $0.36 $0.21
===== =====
Diluted earnings per share $0.35 $0.18
===== =====
See notes to consolidated financial statements
<PAGE>
First Cherokee Bancshares, Inc.
Consolidated Statements of Comprehensive Income
For the three months ended March 31,
(Unaudited)
2000 1999
---- ----
Net earnings $265,847 $118,367
Other comprehensive income, net of tax:
Unrealized losses on securities available for sale:
Unrealized loss arising during the period, net
of tax of $1,078 and $735, respectively (1,738) (1,185)
Less: Reclassification adjustment for gains
included in net earnings, net of tax 0 0
- -
Other comprehensive income (1,738) (1,185)
------- -------
Comprehensive income $264,109 $117,182
======== ========
See Notes to Consolidated Financial Statements
<PAGE>
First Cherokee Bancshares, Inc.
Consolidated Statements of Cash Flows
For the three months ended March 31,
(Unaudited)
2000 1999
---- ----
Cash flows from operating activities:
Net earnings $265,847 $118,367
Adjustments to reconcile net earnings to net cash
provided (used) in operating activities:
Depreciation, amortization and accretion 94,541 71,930
Provision for loan losses 171,590 83,368
Change in accrued interest payable and
other liabilities 138,051 54,135
Change in accrued interest receivable and
other assets 178,746 (656,261)
------- ---------
Total adjustments 582,928 (446,828)
------- ---------
Net Cash used by operating activities 848,775 (328,461)
Cash flows from investing activities:
Purchases of other investments (207,100) 0
Proceeds from maturities and calls of investment 10,177 13,122
securities available for sale
Net change in loans (12,905,137) (7,332,878)
Purchases of premises and equipment (46,955) (267,967)
-------- ---------
Net Cash used by investing activities (13,149,015) (7,587,723)
Cash flows from financing activities:
Net change in deposits 12,288,627 4,737,664
Proceeds from FHLB advances 2,000,000 0
Repayment of note payable (825,299) 0
Proceeds from Federal funds purchased 240,000 0
------- -
Net Cash provided by financing activities 13,703,328 4,737,664
Net change in cash and cash equivalents 1,403,088 (3,178,520)
Beginning cash and cash equivalents 4,559,572 15,319,736
--------- ----------
Ending cash and cash equivalents $5,962,660 $12,141,216
Noncash investing activities:
Change in accumulated other comprehensive
income, net of tax ($1,738) ($1,185)
Transfer of loans to other real estate $0 $0
Supplemental disclosure of cash flow information:
Interest Paid $1,246,142 $1,184,408
Income Taxes Paid $45,000 $0
See notes to consolidated financial statements
<PAGE>
FIRST CHEROKEE BANCSHARES, INC
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
March 31, 2000
NOTE (1) - BASIS OF PRESENTATION
The consolidated financial statements include the accounts of First Cherokee
Bancshares, Inc. (the "Company") and its wholly-owned subsidiary, First National
Bank of Cherokee (the "Bank"). All significant accounts have been eliminated in
consolidation. Certain prior period amounts have been reclassified to conform
with current year presentation.
The accompanying unaudited interim consolidated financial statements reflect all
adjustments which, in the opinion of management, are necessary to present fairly
the Company's financial position as of March 31, 2000, and the results of its
operations and its cash flows for the three-month period then ended. All such
adjustments are normal and recurring in nature. The financial statements
included herein should be read in conjunction with the consolidated financial
statements and the related notes and the report of independent accountants
included in the Company's 1999 Annual Report on Form 10-KSB.
NOTE (2) - NET EARNINGS PER SHARE
Basic earnings per share is based on the weighted average number of common
shares outstanding during the period while the effects of potential common
shares outstanding during the period are included in diluted earnings per share.
The average market price during the year is used to compute equivalent shares.
All net earnings per share amounts have been restated to conform to the
provisions of SFAS No. 128.
<PAGE>
Reconciliation of the amounts used in the computation of both "basic earnings
per share" and "diluted earnings per share" for the periods ended March 31, 2000
and March 31, 1999 are as follows:
<TABLE>
<CAPTION>
For the three months ended March 31, 2000:
Net Earnings Common Shares Per Share
(Numerator) (Denominator) Amount
----------- ------------- ------
<S> <C> <C> <C>
Basic earnings per share $265,847 745,949 $0.36
Effect of dilutive securities
Stock options 0 3,197
- -----
Diluted earnings per share $265,847 749,146 $0.35
======== ======= =====
For the three months ended March 31, 1999:
Net Earnings Common Shares Per Share
(Numerator) (Denominator) Amount
----------- ------------- ------
Basic earnings per share $118,367 553,804 $0.21
Effect of dilutive securities
Stock options 0 83,805
Warrants 0 13,943
- ------
Diluted earnings per share $118,367 651,552 $0.18
======== ======= =====
</TABLE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS FOR THE THREE MONTHS ENDED MARCH 31, 2000
FORWARD LOOKING STATEMENTS
Various statements contained in this Quarterly Report on Form 10-QSB and the
exhibits to this Quarterly Report which are not statements of historical fact
constitute forward-looking statements within the meaning of the Private
Securities Litigation Reform Act (the "Act"). In addition, various statements in
future filings by the Company with the Securities and Exchange Commission, in
press releases, and in oral and written statements made by or with the approval
of the Company which are not statements of historical fact constitute
forward-looking statements within the meaning of the Act. Examples of
forward-looking statements include, but are not limited to:
/o/ projections of revenues, income or loss, earnings or loss per share, the
payment or non-payment of dividends, capital structure and other financial
items;
/o/ statements of plans and objectives of the Company or its management or Board
of Directors, including those relating to products or services;
/o/ statements of future economic performance; and
/o/ statements of assumptions underlying such statements.
<PAGE>
Words such as "believes", "anticipates", "expects", "intends", "targeted", and
similar expressions are intended to identify forward-looking statements but are
not the exclusive means of identifying such statements.
Forward-looking statements involve risks and uncertainties which may cause
actual results to differ materially from those in such statements. Facts that
could cause actual results to differ from those discussed in the forward-looking
statements include, but are not limited to:
/o/ the strength of the U.S. economy in general and the strength of the local
economies in which we conduct operations;
/o/ the effects of and changes in trade, monetary and fiscal policies and laws,
including the interest rate policies of the Board of Governors of the
Federal Reserve System;
/o/ inflation, interest rate, market and monetary fluctuations;
/o/ the timely development of new products and services and the overall value of
these products and services to users;
/o/ changes in consumer spending, borrowing and saving habits;
/o/ technological changes;
/o/ acquisitions;
/o/ the ability to increase market share and control expenses;
/o/ the effect of changes in laws and regulations (including laws and
regulations concerning taxes, banking, securities and insurance) with which
the Company and its subsidiary must comply;
/o/ the effect of changes in accounting policies and practices, as may be
adopted by the regulatory agencies as well as the Financial Accounting
Standards Board;
/o/ changes in the Company's organization, compensation and benefit plans;
/o/ the costs and effects of litigation and of unexpected or adverse outcomes in
such litigation; and
/o/ the success of the Company at managing the risks involved in the foregoing.
Forward-looking statements speak only as of the date on which they are made, and
the Company undertakes no obligation to update any forward-looking statement to
reflect unanticipated events or circumstances after the date on which a
statement is made.
The following narrative should be read in conjunction with the Company's
consolidated financial statements and the notes thereto.
FINANCIAL CONDITION
- -------------------
Total assets as of March 31, 2000 were $140.2 million compared to $126.1 million
as of December 31, 1999. Assets of the Company increased approximately $14.1
million during the first quarter of 2000 as compared to an increase of
approximately $4.9 million during the first quarter of 1999. This growth is due
to normal business transactions.
<PAGE>
Loans increased from $92.4 million at March 31, 1999 to $109.2 million at
December 31, 1999 and $121.9 million at March 31, 2000. Management anticipates
loan production will continue to increase during the remainder of the year. The
following table presents major classifications of loans at March 31, 2000:
% of
Total
Total Loan
Loans Portfolio
----- ---------
Commercial $ 9,995,019 8.10%
SBA - unguaranteed 25,567,231 20.71%
Real estate - mortgage 46,818,434 37.93%
Real estate - construction 31,922,810 25.86%
Installment and other consumer 9,127,519 7.40%
--------- -----
Total loans 123,431,013 100.00%
Less: Allowance for loan losses (1,487,600) =======
-----------
Total net loans $121,943,413
============
Net premises and equipment were $4.1 million at March 31, 2000 compared to $4.2
million at December 31, 1999. Other assets decreased from $6.7 million as of
December 31, 1999 to $6.6 million as of March 31, 2000.
Total deposits were $123.0 million at March 31, 2000 compared to $110.7 million
at December 31, 1999. As of March 31, 2000, interest-bearing deposits and non
interest-bearing deposits were $103.2 million and $19.9 million, respectively.
As of December 31, 1999, interest-bearing deposits and non interest-bearing
deposits were $94.1 million and $16.7 million, respectively.
The Company added $171,590 to the allowance for loan losses during the first
quarter of 2000. The addition is primarily attributable to the increased level
of loans at March 31, 2000. The allowance had a balance of $1,487,600 at March
31, 2000, representing 1.21% of loans. Chargeoffs were $22,981 while recoveries
were $300 resulting in net chargeoffs of $22,681 during the first three months
of 2000. Management believes this allowance is adequate to cover possible loan
losses. The following table presents the activity in the allowance for the first
quarter of 2000. At March 31, 2000, management determined that three loans
required specific reserves totaling $67,887. The allowance is allocated among
loan categories based on the relative percentage of the particular category to
total loans.
<PAGE>
FIRST CHEROKEE BANCSHARES, INC.
ANALYSIS OF THE ALLOWANCE FOR LOAN LOSSES
Balance, December 31, 1999 $1,338,691
Chargeoffs (22,981)
Recoveries 300
Provision for Loan Losses 171,590
-------
Balance, March 31, 2000 $1,487,600
==========
NONACCRUAL, PAST DUE AND RESTRUCTURED LOANS
- -------------------------------------------
At March 31, 2000, the Bank had fourteen loans classified as nonaccrual and
totaling $366,164, all of which are secured by real estate, vehicles, equipment
or inventory. The Bank's impaired loans consist of those nonaccrual loans that
are either greater than 90 days delinquent as of March 31, 2000 or are
classified as nonaccrual by management because the collection of interest from
the borrower is doubtful. Specific reserves totaling $67,887 have been allocated
on the nonaccrual loans considered impaired. Interest income from impaired loans
is recognized using a cash basis method of accounting for the time period during
which the loans were impaired. If interest income on the total nonaccrual loans
had been accrued, the interest income would have been approximately $31,075 as
of March 31, 2000. Actual interest income on such loans, recorded only when
received, was approximately $13,074 for the first three months of 2000. As of
March 31, 2000, the Bank had one property classified as other real estate owned,
totaling $104,500. This property was sold in April 2000 with a gain of
approximately $7,000. The ratio of loans past due 30 days or more to total loans
was 2.31% at March 31, 2000 compared to .95% at December 31, 1999. There were no
loans past due greater than 90 days that were on accrual status as of March 31,
2000 or December 31, 1999. There were no restructured loans as of March 31, 2000
or December 31, 1999.
LIQUIDITY
- ---------
The Company's primary sources of funds are increases in deposits, loan
repayments, and sales and maturities of investments. Liquidity refers to the
ability of the Company to meet its cash flow requirements and fund its
commitments. The Company manages the levels, types, and maturities of earning
assets in relation to the sources available to fund current and future needs to
ensure that adequate funding will be available at all times. The Company
monitors its compliance with regulatory liquidity requirements and anticipates
that funding requirements will be satisfactorily met.
<PAGE>
CAPITAL RESOURCES
- -----------------
At March 31, 2000, consolidated stockholders' equity was $10,603,304 or 7.56% of
total assets compared to $10,339,195 or 8.20% of total assets at December 31,
1999. The Company's common stock had a book value of $14.21 per share at March
31, 2000 compared to a book value of $13.86 per share at December 31, 1999. At
the end of the first quarter of 2000, the Company had approximately 500
stockholders of record.
The Bank and the Company are subject to the capital requirements of the Office
of the Comptroller of the Currency ("OCC") and the Federal Reserve Bank (the
"FRB"), respectively. The OCC and FRB have adopted risk-based capital guidelines
for all national banks and bank holding companies, respectively. To be
"adequately capitalized," all national banks are expected to maintain a minimum
ratio of total capital (after deductions) to risk-weighted assets of 8% (of
which at least 4% must consist of Tier 1 Capital, as defined).
The following table sets forth information with respect to the risk-based and
leverage ratios for the Company and Bank at March 31, 2000 and 1999 compared to
minimum ratios required by regulation.
<TABLE>
<CAPTION> To Be Well
Capitalized Under
For Capital Prompt Corrective
Actual Adequacy Purposes Action Provisions
--------------------------------------------------------------------------------------
Amount Ratio Amount Ratio Amount Ratio
------ ----- ------ ----- ------ -----
<S> <C> <C> <C> <C> <C> <C>
As of March 31, 2000:
Total Capital (to Risk-Weighted Assets)
Consolidated $12,030 10.11% 9,523 8.00% 11,903 10.00%
Bank $12,090 10.16% 9,523 8.00% 11,903 10.00%
Tier 1 Capital (to Risk-Weighted Assets)
Consolidated $10,543 8.86% 4,761 4.00% 7,142 6.00%
Bank $10,603 8.91% 4,761 4.00% 7,142 6.00%
Tier 1 Capital (to Average Assets)
Consolidated $10,543 7.94% 5,311 4.00% 6,639 5.00%
Bank $10,603 7.99% 5,311 4.00% 6,639 5.00%
As of March 31, 1999:
Total Capital (to Risk-Weighted Assets)
Consolidated $8,608 9.18% 7,498 8.00% 9,373 10.00%
Bank $9,146 9.76% 7,498 8.00% 9,373 10.00%
Tier 1 Capital (to Risk-Weighted Assets)
Consolidated $7,431 7.93% 3,749 4.00% 5,624 6.00%
Bank $7,969 8.50% 3,749 4.00% 5,624 6.00%
Tier 1 Capital (to Average Assets)
Consolidated $7,431 6.50% 4,570 4.00% 5,712 5.00%
Bank $7,969 6.98% 4,570 4.00% 5,712 5.00%
</TABLE>
<PAGE>
RESULTS OF OPERATIONS
- ---------------------
The Company recognized earnings of $265,847 for the first quarter of 2000. In
comparison, net earnings for the first quarter of 1999 were $118,367.
Net interest income for the first three months of 2000 was $1,664,466 as
compared to $1,193,577 for the first three months of 1999. The average yield on
earning assets for the first quarter of 2000 increased to 9.97% as compared to
9.51% for the first quarter of 1999. The increase is primarily due to the
increase in the prime lending rate. The average cost of funds on
interest-bearing liabilities increased for the first three months of 2000 to
5.34%, as compared to 5.21% for the first three months of 1999. Consequently,
the net interest spread for the first three months of 2000 increased to 4.63%
compared to 4.30% for the first three months of 1999.
Total other income for the first quarter of 2000 was $483,318 compared to
$536,760 for the first quarter of 1999. This decrease is primarily due to
decreased volume in loan sales.
Total other expense for the first quarter of 2000 was $1,531,347 compared to
$1,449,522 for the first quarter of 1999. This increase is primarily due to
increased personnel costs. The annualized ratio of operating expenses to average
assets decreased to 4.58% for the first three months of 2000 from 5.07% for the
first three months of 1999.
<PAGE>
PART II - OTHER INFORMATION
Item 1. Legal Proceedings - None
Item 2. Changes in Securities and Use of Proceeds
(a)None
(b)None
(c)None
(d)None
Item 3. Defaults Upon Senior Securities - None
Item 4. Submission of Matters to a Vote of Security Holders - None
Item 5. Other Information - None
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
--------
Exhibit
Number Description
------ -----------
3.1(1) Articles of Incorporation
3.2(2) Bylaws, as amended through March 29, 1994
10.1(3)(4) Employment Agreement (Carl Hames) dated May 11, 1995
10.2(3)(6) First Cherokee Bancshares, Inc. 1999 Stock Option Plan
10.3(1) Agreement for Lease/Purchase of Real Property for Bank
Premises
10.4(1)(3) Form of Key Employee Stock Option Plan
10.5(3)(5) Form of Incentive Stock Option Certificate to Purchase
Stock of First Cherokee Bancshares, Inc., issued under
the Key Employee Stock Option Plan effective
October 13, 1988
10.6(3)(5) Form of Directors' Non-Qualified Stock Option Agreement
27 Financial Data Schedule (for SEC use only) for quarter
ended March 31, 2000
________________________
(1) Incorporated herein by reference to Exhibit of the same number
in the Company's Registration Statement No. 33-25075-A.
(2) Incorporated herein by reference to Exhibit of the same number
in the Company's Annual Report on Form 10-KSB for the year
ended December 31, 1994.
<PAGE>
(3) The indicated exhibits are management contracts or
compensatory plans or arrangements required to be filed or
incorporated by reference herein.
(4) Incorporated herein by reference to Exhibit of the same number
in the Company's Form 10QSB for the period ended June 30, 1995.
(5) Incorporated herein by reference to Exhibit 10.6 in the
Company's Annual Report on Form 10-KSB for the year ended
December 31, 1999.
(6) Incorporated herein by reference to Appendix A to the Company's
Proxy Statement filed on March 30, 1999.
(b) The Company has not filed any reports on Form 8-K during the three months
ended March 31, 2000.
Item 7. Signatures - attached
<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.
FIRST CHEROKEE BANCSHARES, INC.
-------------------------------
(Registrant)
DATE: May 12, 2000 BY: /s/Carl C. Hames, Jr.
- ------------------ ---------------------
Carl C. Hames, Jr.
President & CEO/Principal
Executive Officer
DATE: May 12, 2000 BY: /s/Kitty A. Kendrick
- ------------------ --------------------
Kitty A. Kendrick
Chief Financial Officer/
Principal Financial and Accounting Officer
<TABLE> <S> <C>
<ARTICLE> 9
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-2000
<PERIOD-START> JAN-01-2000
<PERIOD-END> MAR-31-2000
<CASH> 4,448,071
<INT-BEARING-DEPOSITS> 1,514,589
<FED-FUNDS-SOLD> 0
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 513,193
<INVESTMENTS-CARRYING> 0
<INVESTMENTS-MARKET> 0
<LOANS> 121,943,413
<ALLOWANCE> 1,487,600
<TOTAL-ASSETS> 140,165,192
<DEPOSITS> 123,010,041
<SHORT-TERM> 1,161,847
<LIABILITIES-OTHER> 5,390,000
<LONG-TERM> 0
0
0
<COMMON> 774,225
<OTHER-SE> 9,829,079
<TOTAL-LIABILITIES-AND-EQUITY> 140,165,192
<INTEREST-LOAN> 2,975,461
<INTEREST-INVEST> 7,483
<INTEREST-OTHER> 26,652
<INTEREST-TOTAL> 3,009,596
<INTEREST-DEPOSIT> 1,264,726
<INTEREST-EXPENSE> 1,345,130
<INTEREST-INCOME-NET> 1,664,466
<LOAN-LOSSES> 171,590
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 1,531,347
<INCOME-PRETAX> 444,847
<INCOME-PRE-EXTRAORDINARY> 444,847
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 265,847
<EPS-BASIC> 0
<EPS-DILUTED> 0
<YIELD-ACTUAL> 9.97
<LOANS-NON> 366,164
<LOANS-PAST> 2,850,331
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 1,338,691
<CHARGE-OFFS> 22,981
<RECOVERIES> 300
<ALLOWANCE-CLOSE> 1,487,600
<ALLOWANCE-DOMESTIC> 1,487,600
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 1,419,713
</TABLE>
