<PAGE>
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
FORM 10-Q
(Mark One)
X QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE
---
SECURITIES EXCHANGE ACT OF 1934
For Quarter Ended March 31, 1998
----------------
OR
___ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from ___________ to ____________
Commission File Number 0-18301
-------
IROQUOIS BANCORP, INC.
----------------------
(Exact name of Registrant as specified in its charter)
NEW YORK 16-1351101
-------- ----------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
115 Genesee Street, Auburn, New York 13021
------------------------------------ -----
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (315) 252-9521
--------------
____________________________________________________________________
Former name, former address and former fiscal year, if changed since
last report.
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days. Yes X No
--- ---
APPLICABLE ONLY TO CORPORATE ISSUERS:
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date: 2,392,580 shares of common
---------
stock on March 31, 1998.
<PAGE>
INDEX
Page No.
--------
PART I FINANCIAL INFORMATION
Item 1. Financial Statements
Condensed Consolidated Balance Sheets -
March 31, 1998 and December 31, 1997.................. 3
Condensed Consolidated Statements of Income -
Three Months Ended March 31, 1998 and 1997............ 4
Condensed Consolidated Statements of Cash Flows -
Three Months Ended March 31, 1998 and 1997............ 5-6
Notes to Condensed Consolidated Financial
Statements............................................ 7-9
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations........10-12
Item 3. Quantative and Qualitative Disclosures About
Market Risk........................................... 13
PART II OTHER INFORMATION..................................... 14
Item 1. Legal Proceedings..................................... 14
Item 2. Changes in Securities................................. 14
Item 3. Defaults upon Senior Securities....................... 14
Item 4. Submission of Matters to a Vote of Security Holders... 14
Item 5. Other Information..................................... 14
Item 6. Exhibits and Reports on Form 8-K...................... 14
SIGNATURES..................................................... 15
(2)
<PAGE>
ITEM 1. FINANCIAL INFORMATION
IROQUOIS BANCORP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
<TABLE>
<CAPTION>
March 31, December 31,
1998 1997
---------- -------------
<S> <C> <C>
ASSETS
Cash and due from banks $ 11,385 $ 12,778
Federal funds sold and interest-bearing
deposits with other financial institutions 2,405 705
Securities available for sale 55,432 51,944
Securities held to maturity 49,344 51,676
Loans receivable 379,782 373,269
Less allowance for loan losses 3,343 3,285
-------- --------
Loans receivable, net 376,439 369,984
Premises and equipment, net 8,240 8,170
Federal Home Loan Bank stock, at cost 4,004 3,629
Accrued interest receivable 3,875 3,855
Other assets 7,058 7,037
- ------------------------------------------------ -------- --------
Total Assets 518,182 509,778
================================================ ======== ========
LIABILITIES
Savings and time deposits $399,721 $389,448
Demand deposits 27,288 27,563
Borrowings 47,760 50,164
Accrued expenses and other liabilities 3,455 3,574
- ------------------------------------------------ -------- --------
Total Liabilities $478,224 $470,749
- ------------------------------------------------ -------- --------
SHAREHOLDERS' EQUITY
Preferred Stock, $1.00 par value,
3,000,000 shares authorized:
Series A - 29,959 and 29,999 shares
issued and outstanding in March 1998
and December 1997 respectively,
liquidation value $2,996 30 30
Series B - 18,527 and 18,632 shares
issued and outstanding in March 1998
and December 1997 respectively,
liquidation value $1,853 18 19
Common Stock $1.00 par value; 6,000,000 shares
authorized; 2,392,580 and 2,388,936 shares
issued and outstanding at March 31, 1998
and December 31, 1997, respectively 2,393 2,389
Additional paid-in capital 13,830 13,793
Retained earnings 23,738 22,868
Accumulated other comprehensive income 232 213
Unallocated shares of Stock Ownership Plans (283) (283)
- ------------------------------------------------ -------- --------
Total Shareholders' Equity 39,958 39,029
- ------------------------------------------------ -------- --------
Total Liabilities and Shareholders' Equity $518,182 $509,778
================================================ ======== ========
</TABLE>
See accompanying notes to condensed consolidated financial statements.
(3)
<PAGE>
IROQUOIS BANCORP, INC.
AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
<TABLE>
<CAPTION>
Three months ended
March 31,
1998 1997
---------- -------
<S> <C> <C>
Interest Income:
Loans $7,927 7,447
Securities 1,610 1,609
Other 110 56
- ------------------------------------------ ------ -----
9,647 9,112
- ------------------------------------------ ------ -----
Interest Expense:
Deposits 3,879 3,701
Borrowings 712 345
- ------------------------------------------ ------ -----
4,591 4,046
- ------------------------------------------ ------ -----
Net Interest Income 5,056 5,066
Provision for loan losses 360 373
- ------------------------------------------ ------ -----
Net Interest Income after Provision
for Loan Losses 4,696 4,693
- ------------------------------------------ ------ -----
Non-Interest Income:
Service charges, commissions and fees 802 658
Net gain on sales of securities
and loans -- 30
Other 13 36
- ------------------------------------------ ------ -----
Total Non-Interest Income 815 724
- ------------------------------------------ ------ -----
Non-Interest Expense:
Salaries and employee benefits 1,874 1,813
Occupancy and equipment expenses 394 444
Computer and product service fees 401 317
Promotion and marketing expenses 82 74
Deposit insurance 23 24
Other 822 757
- ------------------------------------------ ------ -----
Total Non-Interest Expenses 3,596 3,429
- ------------------------------------------ ------ -----
Income Before Income Taxes 1,915 1,988
Income taxes 697 759
- ------------------------------------------ ------ -----
Net Income $1,218 1,229
Preferred stock dividend 111 108
- ------------------------------------------ ------ -----
Net income attributable to common stock $1,107 1,121
========================================== ====== =====
Net income per common share:
Basic $.47 .48
====== =====
Diluted $.45 .47
====== =====
Cash dividends declared $.10 .08
</TABLE>
See accompanying notes to condensed consolidated financial statements.
(4)
<PAGE>
IROQUOIS BANCORP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Three months ended
March 31,
1998 1997
---------- --------
<S> <C> <C>
Cash flows from operating activities:
Net income $ 1,218 1,229
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization expense,
provision for loan losses, deferred
taxes and other 681 587
Net (gain) loss on sale of securities
and loans -- (30)
Increase in accrued interest receivable
and other assets (166) (489)
Increase in accrued expenses
and other liabilities 155 169
- --------------------------------------------- ------- ------
Net cash provided by operating activities 1,888 1,466
- --------------------------------------------- ------- ------
Cash flows from investing activities:
Proceeds from sales of securities available
for sale -- 891
Proceeds from maturities and redemptions
of securities available for sale 3,033 914
Proceeds from maturities and redemptions
of securities held to maturity 4,940 4,567
Purchases of securities available for sale (6,521) (5,450)
Purchases of securities held to maturity (2,611) (5,106)
Loans made to customers net of principal
payments received (7,009) (649)
Proceeds from sales of loans 496 375
Capital expenditures (243) (156)
Purchase of FHLB stock (375) (156)
Other - net (576) (231)
- --------------------------------------------- ------- ------
Net cash used by investing
activities (8,866) (5,001)
- --------------------------------------------- ------- ------
Cash flows from financing activities:
Net increase (decrease) in savings
accounts and demand deposits 3,217 9,452
Net increase in time deposits 6,781 3,159
Net (decrease) in borrowings and other
liabilities (2,404) (5,203)
Proceeds from issuance of Common stock 54 89
Dividends paid (348) (296)
Redemption of Preferred stock (15) (123)
- --------------------------------------------- ------- ------
Net cash provided used by financing
activities 7,285 7,076
- --------------------------------------------- ------- ------
</TABLE>
(5)
<PAGE>
IROQUOIS BANCORP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Three months ended
March 31,
1998 1997
--------- -------
<S> <C> <C>
Net increase (decrease) in cash and
cash equivalents $ 307 3,541
Cash and cash equivalents at beginning of
period 13,483 10,675
- --------------------------------------------- ------- ------
Cash and cash equivalents at end of period $13,790 14,216
- --------------------------------------------- ------- ------
Supplemental disclosures of cash flow
information:
Cash paid during the period for:
Interest 4,461 4,076
Income taxes 725 343
Supplemental schedule of non-cash investing
activities:
Loans to facilitate the sale of ORE -- 29
Additions to other real estate 387 94
</TABLE>
See accompanying notes to condensed consolidated financial
statements.
(6)
<PAGE>
IROQUOIS BANCORP, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
1) Financial Statements
--------------------
The interim financial statements contained herein are unaudited, but in
the opinion of management of the Company, include all adjustments
(consisting only of normal recurring adjustments) necessary for a fair
presentation of the results of operations for these periods. The results
of operations for the interim periods are not necessarily indicative of the
results of operations for the full year.
2) Earnings Per Share
------------------
December 31, 1997 the Company adopted the provisions of Statement of
Financial Accounting Standards (SFAS) No. 128 "Earnings Per Share." SFAS
No. 128 supersedes Accounting Principles Board Opinion No. 15, "Earnings
Per Share" and specifies the computation, presentation, and disclosure
requirements for earnings per share (EPS) for entities with publicly held
common stock. All prior period EPS amounts included in the consolidated
financial statements and in the related notes thereto have been restated to
conform with the computational provisions of this statement.
Basic earnings per share is calculated by dividing net income available to
common shareholders by the weighted average number of shares outstanding
during the year. Diluted earnings per share includes the maximum dilutive
effect of stock issuable upon conversion of stock options.
(7)
<PAGE>
Calculation of Basic Earnings Per Share (Basic EPS) and Diluted Earnings Per
Share (Diluted EPS) were as follows:
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------
For Three Months Ended March 31, 1998
- ----------------------------------------------------------------------------------------------------
Income Average Shares Amounts
- ----------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Basic EPS
Net Income $1,218
Less: Preferred stock dividends (111)
- ----------------------------------------------------------------------------------------------------
Income available to common
shareholders $1,107 2,371,083 $.47
Effect of Dilutive Securities
Stock Options 65,394
- ----------------------------------------------------------------------------------------------------
Diluted EPS
Income available to common
shareholders plus assumed
conversions $1,107 2,436,477 $.45
- ---------------------------------------------------------------------------------------------------
For Three Months Ended March 31, 1997
- ----------------------------------------------------------------------------------------------------
Income Average Shares Amounts
- ----------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Basic EPS
Net Income $1,229
Less: Preferred stock dividends (108)
- ----------------------------------------------------------------------------------------------------
Income available to common
shareholders $1,121 2,346,096 $.48
Effect of Dilutive Securities
Stock Options 56,666
- ----------------------------------------------------------------------------------------------------
Diluted EPS
Income available to common
shareholders plus assumed
conversions $1,121 2,402,762 $.47
- ---------------------------------------------------------------------------------------------------
</TABLE>
3) Other Accounting Issues
----------------------
In June 1997, the FASB issued SFAS 131, "Disclosures about Segments of an
Enterprise and Related Information." SFAS 131 is effecive for financial
statements for periods beginning after December 15, 1997. The statement is
effective for the Company in 1998. In the intitial year of application,
comparative information for earlier years is to be restated. SFAS 131 requires
that a public business enterprise report financial and descriptive informatiion
about its reportable operating segments. Adoption of this statement will have no
effect on the Company's financial position or results of operations.
(8)
<PAGE>
Effective January 1, 1998 the Company adopted the remaining provisions of
SFAS No. 125 "Accounting for Transfers and Servicing of Financial Assets
and Extinguishments of Liabilities", which relate to the accounting for
securities lending, repurchase agreements, and other secured financing
activities. These provisions, which were delayed for implementation by SFAS
No. 127, are not expected to have a material impact on the Company.
On January 1, 1998, the Company adopted the provisions of Statement of
Financial Accounting Standards (SFAS) No. 130, "Reporting Comprehensive
Income" SFAS No. 130 establishes standards for reporting and display of
comprehensive income and its components. Comprehensive income includes the
reported net income of a company adjusted for items that are currently
accounted for as direct entries to equity, such as the mark to market
adjustment on securities available for sale, foreign currency items and
minimum pension liability adjustments. At the Company, comprehensive income
represents net income plus other comprehensive income net of taxes, which
consists of the net change in unrealized gains or losses on securities
available for sale for the period. Accumulated other comprehensive income
represents the net unrealized gains or losses on securities available for
sale as of the balance sheet dates. Comprehensive income for the three-
month periods ended March 31, 1998 and 1997 was $1,237,000 and
$1,007,000, respectively.
The Financial Accounting Standards Board issued Statement of Financial
Accounting Standards (SFAS) No. 132, "Employers' Disclosures about Pensions
and Other Post Retirement Benefits" in February 1998. SFAS No. 132 revises
employers' disclosures about pension and other post retirement benefit
plans, it does not change the measurement or recognition of these plans.
SFAS No. 132 is effective for the Company in 1998 and will not impact the
Company's financial position or results of operations.
(9)
<PAGE>
IROQUOIS BANCORP, INC.
AND CONSOLIDATED SUBSIDIARIES
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS
- ---------------------
THREE MONTHS ENDED MARCH 31, 1998 COMPARED TO MARCH 31, 1997
- ------------------------------------------------------------
Net income for the three months ended March 31, 1998 was $1,218,000, or $.47
basic earnings per share, compared to $1,229,000, or $.48 basic earnings per
share, for the three months ended March 31, 1997. On a fully diluted basis,
earnings per share were $.45 and $.47, respectively, for the quarters ended
March 31, 1998 and 1997.
Net interest income for the three months ended March 31, 1998 was $5,056,000,
compared to $5,066,000 for the three months ended March 31, 1997. Net interest
income was lower during the current quarter primarily as a result of lower
yields on retail loans and investments and higher deposit and borrowing costs.
The resulting decline in net interest spread in 1998 primarily reflects the
general flattening of the yield curve. Net interest margin declined to 4.20% in
the first quarter of 1998, compared to 4.53% for the quarter ended March 31,
1997.
Interest income was $9,647,000 for the first quarter of 1998 compared to
$9,112,000 for the first quarter of 1997. Average earning assets increased to
$481.3 million for the current quarter compared to $447.4 million for the year
earlier. The largest increase was in residential mortgage loans which increased
from $187.9 million to $219.2 million.
Interest expense was $4,591,000 for the quarter ended March 31, 1998 compared to
$4,046,000 for the quarter ended March 31, 1997. Average costing liabilities
increased to $441.1 million for the current quarter compared to $412.1 million
the year earlier. Average deposits including non-interest bearing demand
deposits increased to $418.9 million compared to $412.7 million while average
borrowings increased to $48.3 million compared to $24.1 million. The largest
deposit increase was in public funds, which increased to an average of $29.9
million for the first quarter of 1998 compared to $15.8 million for the first
quarter of 1997.
The loan loss provision for the quarter ended March 31, 1998 was $360,000,
compared to $373,000 for the quarter ended March 31, 1997. The allowance for
loan losses was $3.3 million at March 31, 1998 compared to $3.6 million at March
31, 1997. Net charge-offs were $325,000 for the first quarter of 1998 compared
to $194,000 for the quarter ended March 31, 1997.
(10)
<PAGE>
Results of Operations, Cont.
Total non-interest income increased to $815,000 for the first quarter of 1998
from $694,000 for the first quarter of 1997. The 17.4% increase was primarily a
result of increases in service fee income, particularly trust and investment
services, loan, and deposit fees.
Total non-interest expense increased to $3,596,000 for the first quarter of 1998
from $3,429,000 for the first quarter of 1997. The increase was primarily a
result of higher salary and benefit costs as well as higher computer, product
service and consulting fees.
For the quarter ended March 31, 1998 the provision for income taxes was $697,000
with an effective tax rate of 36.4%, compared to $759,000, or a 38.2% effective
tax rate, for the quarter ended March 31, 1997.
FINANCIAL CONDITION, LIQUIDITY AND CAPITAL RESOURCES
- ----------------------------------------------------
The ending balance of consolidated assets was $518.2 million at March 31, 1998,
compared to $509.8 million at December 31, 1997.
Net loans receivable increased to $376.4 million from $370.0 million at year end
1997. The increase was primarily in residential mortgages which increased to
$226.1 million from $215.3 million. Commercial mortgage balances decreased to
$40.1 million from $41.7 million. Consumer loan balances also decreased to
$73.0 million from $74.4 million as did other commercial loans to $40.4 million
from $41.8 million.
The allowance for loan losses remained constant at $3.3 million for the end of
March 1998, as compared to December 31, 1997. The allowance as a percentage of
total loans remained constant at .88%. The allowance as a percentage of non-
performing loans was 53.69% compared to 53.21% at year end. Total non-
performing loans totaled $6.2 million at March 31, 1998 up just slightly from
year end 1997.
Total ending balances in Federal Funds and other investment securities increased
to $107.2 million at March 31, 1998 from $104.3 million at December 31, 1997.
The increase was primarily in investments held as available for sale which
increased from $51.9 million to $55.4 million. Holdings in tax-exempt municipal
securities increased while holdings of mortgage-backed securities decreased.
Total deposits increased to $427.0 million from $417.0 million. Balances in
savings, money market accounts and certificates of deposit increased while
balances in business checking accounts declined. Municipal deposit balances
increased to $33.8 million from $27.1 million at year-end 1997.
(11)
<PAGE>
Financial Condition, Cont.
Borrowings from the Federal Home Loan Bank (FHLB) decreased to $47.8 million
from $50.2 million. Term advances increased $2.0 million while draws against
overnight lines of credit decreased $4.4 million.
The Company had total shareholders' equity of $40.0 million at March 31, 1998
compared to $39.0 million at December 31, 1997. The average equity to assets
ratio increased to 7.65% from 7.39% for the prior year end. Tier I capital to
average assets for the period ending March 31, 1998 was 7.22%. During the first
quarter of 1998, the Company announced the full redemption of its $3.0 million
in outstanding Series A Preferred Stock effective April 1, 1998.
At March 31, 1998, the Company held short-term liquid assets of $27.4 million,
compared to $22.3 million at December 31, 1997. The Company considers its
current level of liquidity coupled with other available sources of funds as both
sufficient and within acceptable ranges.
IMPACT OF THE YEAR 2000
A committee comprised of representatives from each of the subsidiary Banks
continues to direct Iroquois' Year 2000 activities. The committee has contacted
all of the Company's hardware and software vendors regarding their individual
Year 2000 compliance initiatives. The Company is working closely with Fiserv,
Inc., its data services and item processing provider, regarding Year 2000
compliance. Fiserv has set a schedule which anticipates testing to be completed
by December 31, 1998. Testing of critical applications at each of the
subsidiary Banks will start in June 1998. In addition, the Banks have sent
letters to their larger commercial borrowers to determine the extent to which
they may be vulnerable to the Year 2000 issue.
(12)
<PAGE>
IROQUOIS BANCORP, INC.
AND CONSOLIDATED SUBSIDIARIES
ITEM 3. QUANTATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK
Market risk is the risk of loss from adverse changes in market prices and
rates. The Company's market risk arises primarily from interest rate risk
inherent in its lending and deposit activities. Other types of market
risk, such as foreign currency exchange rate risk and commodity price risk,
do not arise in the normal course of the Company's business activities.
Managing interest rate risk is of primary importance to Iroquois. The
Company's asset and liability management program includes a process for
identifying and measuring potential risks to earnings and to the market
value of equity due to changes in interest rates. Interest rate risk is
measured and managed for each bank and monitored from a holding company
perspective. The goal of interest rate risk analysis is to minimize the
potential loss in net interest income and net portfolio value that could
arise from changes in interest rates. Iroquois' asset/liability management
strategies emphasize balancing the mix and repricing characteristics of its
loans, securities, deposits and borrowings to ensure that exposure to
interest rate risk is limited within acceptable levels. Iroquois
determines sensitivity of earnings and capital to changes in interest rates
by utilizing various tools.
A simulation model is the primary tool used to assess the impact of changes
in interest rates on net interest income. The Company also uses a net
portfolio value ("NPV") analysis as another means of measuring and
monitoring its interest rate risk, and in addition also uses a cumulative
gap analysis to receive interest rate sensitivity. The Company establishes
guidelines to monitor the results to ensure interest rate risk is limited
within acceptable levels. At March 31, 1998, an analysis of the Company's
interest rate risk as measured by the above mentioned analysis was within
these guidelines.
The Company does not currently engage in trading activities or use
derivative instruments to control interest rate risk. Even though such
activities may be permitted with the approval of the Board of Directors,
the Company does not intend to engage in such activities in the immediate
future.
(13)
<PAGE>
IROQUOIS BANCORP, INC.
AND SUBSIDIARIES
PART II - OTHER INFORMATION
Item 1. Legal Proceedings - None
Item 2. Changes in Securities - 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 - None
(14)
<PAGE>
IROQUOIS BANCORP, INC.
AND SUBSIDIARIES
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.
Iroquois Bancorp, Inc.
(Registrant)
Date: May 14, 1998 /s/Richard D. Callahan
----------------------------
Richard D. Callahan
President & CEO
Date: May 14, 1998 /s/Marianne R. O'Connor
----------------------------
Marianne R. O'Connor
Treasurer & CFO
(15)
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 9
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM MARCH 31,
1998 10-Q REPORT AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL
STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C> <C>
<PERIOD-TYPE> 3-MOS 3-MOS
<FISCAL-YEAR-END> DEC-31-1998 DEC-31-1997
<PERIOD-START> JAN-01-1998 JAN-01-1997
<PERIOD-END> MAR-31-1998 MAR-31-1997
<CASH> 11385 12216
<INT-BEARING-DEPOSITS> 2405 2000
<FED-FUNDS-SOLD> 0 0
<TRADING-ASSETS> 0 0
<INVESTMENTS-HELD-FOR-SALE> 55432 48050
<INVESTMENTS-CARRYING> 49344 54065
<INVESTMENTS-MARKET> 0 0
<LOANS> 379782 348735
<ALLOWANCE> (3343) 3589
<TOTAL-ASSETS> 518182 481205
<DEPOSITS> 427009 422832
<SHORT-TERM> 47760 20333
<LIABILITIES-OTHER> 3455 2546
<LONG-TERM> 0 0
0 0
48 49
<COMMON> 2393 2373
<OTHER-SE> 37517 33072
<TOTAL-LIABILITIES-AND-EQUITY> 518182 481205
<INTEREST-LOAN> 7927 7447
<INTEREST-INVEST> 1610 1628
<INTEREST-OTHER> 110 37
<INTEREST-TOTAL> 9647 9112
<INTEREST-DEPOSIT> 3879 3701
<INTEREST-EXPENSE> 4591 4046
<INTEREST-INCOME-NET> 5056 5066
<LOAN-LOSSES> 360 373
<SECURITIES-GAINS> 0 30
<EXPENSE-OTHER> 3596 3429
<INCOME-PRETAX> 1915 1988
<INCOME-PRE-EXTRAORDINARY> 0 0
<EXTRAORDINARY> 0 0
<CHANGES> 0 0
<NET-INCOME> 1218 1229
<EPS-PRIMARY> .47 .48
<EPS-DILUTED> .45 .47
<YIELD-ACTUAL> 0 0
<LOANS-NON> 0 0
<LOANS-PAST> 0 0
<LOANS-TROUBLED> 0 0
<LOANS-PROBLEM> 0 0
<ALLOWANCE-OPEN> 0 0
<CHARGE-OFFS> 0 0
<RECOVERIES> 0 0
<ALLOWANCE-CLOSE> 0 0
<ALLOWANCE-DOMESTIC> 0 0
<ALLOWANCE-FOREIGN> 0 0
<ALLOWANCE-UNALLOCATED> 0 0
</TABLE>
