<PAGE>
UNITED STATES
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: MARCH 31, 2000
Commission file number 0-17539
----------------
MADISON BANCSHARES GROUP, LTD.
- --------------------------------------------------------------------------------
(Exact Name of Small Business Issue as Specified In Its Charter)
PENNSYLVANIA 23-2512079
- --------------------------------------- ------------------------------------
(State or other jurisdiction of (IRS Employer Identification Number)
incorporation or organization)
1767 SENTRY PARKWAY WEST, BLUE BELL, PA 19422
- --------------------------------------- ------------------------------------
(Address of principal executive offices) (Zip Code)
(215) 641-1111
- --------------------------------------------------------------------------------
(Registrant's telephone number, including area code)
N/A
- --------------------------------------------------------------------------------
(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 past 12 months (or for such shorter periods 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.
1,756,320 shares of Issuer's Common Stock, par value $1 per share, issued
and outstanding as of April 7, 2000.
<PAGE>
PART 1
ITEM 1 - FINANCIAL STATEMENTS
SEE ANNEX A
<PAGE>
ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
This report contains "forward-looking" statements. Madison
Bancshares Group, Ltd. (the "Company") is including this statement
for the express purpose of availing itself of the protections of
the safe harbor provided by the Private Securities Litigation
Reform Act of 1995 with respect to all such forward-looking
statements. Examples of forward-looking statements include, but
are not limited to (a) projections of changes in capital-to-assets
ratio, (b) statements of plans and objectives of the Company or
its management or Board of Directors, (c) statements of future
economic performance and (d) statements of assumptions underlying
other statements and statements about the Company or its business.
Presented herein are the results of operations of Madison
Bancshares Group, Ltd. (the "Company") and its wholly owned
subsidiary, The Madison Bank (the "Bank"), for the quarters ended
March 31, 2000 and 1999. The Bank commenced operations in August,
1989.
CAPITAL RESOURCES
The total shares of common stock outstanding at March 31, 2000
were 1,756,320 as compared to 1,562,018 at March 31, 1999. On
September 15, 1999, 156,767 shares of common stock were issued
pursuant to a 10% stock dividend declared on August 17, 1999.
During 1999 and the first quarter 2000, a total of 37,535 share of
common stock were issued in conjunction with the exercise of
warrants by certain Directors. The book value of the Company's
common stock at December 31, 1999 was $5.68 per share and at March
31, 2000 was $5.88 per share.
The chart below depicts certain capital ratios applicable to state
chartered Federal Reserve member banks and bank holding companies.
The Company's actual capital ratios at March 31, 2000 and December
31, 1999, respectively, each of which exceeded the levels required
to be classified "adequately capitalized" under applicable
regulatory guidelines.
<TABLE>
<CAPTION>
Regulatory Actual Actual
Ratio Minimum Mar. 31, 2000 Dec. 31, 1999
----- ------- ------------- -------------
<S> <C> <C> <C>
Qualifying Total Capital to
Risk Weighted Assets 8.0% 14.59% 14.57%
Tier 1 Capital, net of intangibles
to Risk Weighted Assets 4.0% 12.15% 12.16%
Tier 1 Leverage Ratio of Capital to
Total Adjusted Average Assets 4.0% 8.79% 8.96%
</TABLE>
<PAGE>
The Company's capital-to-assets ratio was 6.60% as of December 31,
1999 as compared to 6.30% at of March 31, 2000. Management
anticipates that the capital-to-assets ratio will decline in
future periods as the Company's assets continue to grow. For the
quarter ended March 31, 2000, the Company's average return on
equity was 1.13% and its return on average assets was .07%. The
Company's average return on equity as of December 31, 1999 was
9.39%; and its return on average assets was .61%.
LIQUIDITY
The Bank's Asset/Liability Management Committee, comprised of the
members of the Bank's Executive Committee and its Treasurer, are
responsible for managing the liquidity position and interest rate
sensitivity of the Bank. The Committee's function is to balance
the Bank's interest-sensitive assets and liabilities, while
providing adequate liquidity for projected needs. The primary
objective of the Asset/Liability Management Committee is to
optimize net interest margin in an ever changing rate environment.
Due to the nature of the Company's business, some degree of
interest rate risk is inherent and appropriate. Management
attempts to manage the level of earnings exposure arising from
interest rate movements.
Interest rate sensitivity is measured by the difference between
interest-earning assets and interest-bearing liabilities which
mature or reprice within a specific time interval ("Gap"). A
positive gap indicates that interest-earning assets exceed
interest-bearing liabilities within a given interval. A positive
gap position results in increased net interest income when rates
increase and the opposite when rates decline.
At March 31, 2000, the risk management review included an
"earnings at risk" analysis as well as a "risk sensitivity"
analysis. Potential monthly net revenue change indicated that in a
static rate environment, increased earnings would be approximately
$24,200. The Company is in a negative gap position. Accordingly,
if rates fell 200 basis points, monthly revenues a year from now
would increase approximately $16,500 and a rise in rates by 200
basis points would represent a monthly loss in revenues of
approximately $9,000, due to the current negative gap position of
the Company.
Management attempts to structure the Balance Sheet to provide for
the repricing of assets and liabilities in approximately equal
amounts.
<PAGE>
ANALYSIS OF FINANCIAL CONDITION
As of March 31, 2000, the Company held deposits aggregating
$139,311,476, which reflects an increase over deposits of
$130,338,463 held at December 31, 1999. Of the $139,311,476
deposits held at March 31, 2000, $22,313,033, or approximately
16%, were non-interest bearing deposits. Total deposit accounts
numbered 10,964 at March 31, 2000. As of the same date,
outstanding loans receivable in connection with loans made to
1,582 loan accounts totaled approximately $130,838,384 (excluding
loan loss reserve and deferred loan fees). The following tables
and graphs set forth a comparative breakdown of the Company's
deposits and loans outstanding for the periods ended March 31,
2000 and December 31, 1999, respectively.
DEPOSIT LIABILITIES
<TABLE>
<CAPTION>
March 31, 2000 December 31, 1999
% of % of
Type of Account Balance Portfolio Balance Portfolio
--------------- ------------- ------- ------------- -------
<S> <C> <C> <C> <C>
Non-Interest bearing (1) 22,313,033 16% 20,540,071 16%
Interest bearing (2) 13,684,621 10 12,704,649 10
Money Market (3) 15,969,038 11 15,205,159 12
Savings (4) 9,261,009 7 8,150,269 6
CD's Under 100M (5) 41,448,449 30 40,498,507 31
CD's Over 100M (6) 36,635,326 26 33,239,808 25
------------- ------- ------------- -------
Totals $139,311,476 100% $130,338,463 100%
============ ==== ============ ====
</TABLE>
[GRAPHIC] [GRAPHIC]
<PAGE>
LOANS OUTSTANDING
<TABLE>
<CAPTION>
March 31, 2000 December 31, 1999
% of % of
Type of Account Balance Portfolio Balance Portfolio
--------------- ------- --------------- ------
<S> <C> <C> <C> <C>
Real Estate Loans, Mortgages(1) $ 24,292,042 19% $ 24,652,775 19%
Commercial Loans (2) 91,413,361 70 89,988,247 69
Consumer Loans (3) 11,512705 8 9,592,584 8
Residential Loans Held for
Sale (4) 3,620,276 3 5,418,972 4
--------------- ------- --------------- ------
Totals $ 130,838,384 100% $ 129,652,578 100%
============ ==== =============== ====
</TABLE>
[GRAPHIC] [GRAPHIC]
RESULTS OF OPERATIONS
For the three months ended March 31, 2000, the Company's net
income was $29,116 or $.02 per share (diluted), as compared to net
income of $146,748 or $.09 per share (diluted) during the three
month period ended March 31, 1999. The decrease was attributable
to expenses associated with two additional branches. The Company
anticipates that the per share price and net income will be
significantly lower for year 2000 due to the increased expenses
associated with its strategy to expand by branching.
<PAGE>
ANALYSIS OF NET INTEREST INCOME
Net interest income, the difference between the interest earned on
loans and other investments and the interest paid on deposits and
other borrowings, is the primary source of the Bank's and the
Company's earnings.
The graph below sets forth the Company's interest income and
interest expense growth for the period from March 31, 1999 through
March 31, 2000:
[GRAPHIC]
The Company's net interest income, after provision for loan
losses, for the quarters ended March 31, 2000 and March 31, 1999
was $1,963,780 and $1,689,217, respectively. Total interest income
was $3,563,274 for the quarter ended March 31, 2000, as compared
to $3,080,806 for the quarter ended March 31, 1999. Interest
expense on deposits and borrowings increased to $1,499,494 from
$1,271,589 for the corresponding quarter of 1999.
<PAGE>
The increase in interest income primarily was due to growth in
loans as the graph below depicts.
[GRAPHIC]
PROVISION FOR LOAN LOSSES
As of December 31, 1999 the Company had $1,262,256 in its
allowance for loan losses representing 1.02% of outstanding loans
receivable, excluding residential loans held for sale. During the
first quarter of 2000, the Company added $100,000 to the reserve.
The allowance for loan loss reserve was $1,344,957 or 1.07% of
total loans receivable as of March 31, 2000. The principal amount
of non-accrual loans at March 31, 2000 totaled $1,291,818 as
compared to $1,564,494 as of December 31, 1999. A substantial
portion of the non-accrual loans are partially or fully secured
and in the process of collection. Management believes that the
allowance for loan losses is reasonable and adequate to cover any
known losses or any losses reasonably expected in the portfolio.
Other real estate owned at March 31, 2000 totaled $273,868. This
consists of one property in Drexel Hill, Pennsylvania. The
property is currently listed for sale with a realtor and
management continues to monitor and evaluate the Bank's exposure
on this property.
INTEREST EXPENSE
Interest expense of $1,499,494 represented 42% of gross interest
income for the three months ended March 31, 2000. Interest expense
increased slightly
<PAGE>
over the same period in 1999. The average cost of funds increased
from 4.42% at March 31, 1999 to 4.61% at March 31, 2000, due to
increased interest bearing funds and a rise in interest rates.
NON-INTEREST EXPENSE
For the quarter ended March 31, 2000, non-interest expenses were
$2,445,834 as compared to $2,230,527 during the first quarter of
1999, a 10% increase. Of this amount, $1,390,647, or approximately
57%, was attributable to salary and related employee benefits as
compared to $1,286,460, or 58%, during the first quarter of 1999.
The increase was primarily due to increased staffing to
accommodate the Company's growth of two additional branches.
Occupancy expenses of $300,395 accounted for 12% of total
non-interest expenses in the first quarter of 2000. This was an
increase over the same period in 1999 of 18%. The increased
occupancy expenses is directly attributable to the additional
space the Bank leased to accommodate the branch expansion as well
as additional space to support the internal growth of the Bank.
Occupancy expense at March 31, 1999 was $253,902 or 11% of total
non-interest expenses.
Equipment expenses of $117,736 for the quarter ended March 31,
2000 represented an increase of 23% from $95,537 for the first
quarter of 1999. The increase was a result of additional
maintenance contracts on certain of the Bank's equipment and
additional equipment leases for branch expansion and upgrades to
the Bank's existing equipment.
Professional fees for the quarter ended March 31, 2000 were
$15,975 as compared to $27,514 for the quarter ended March 31,
1999, a 42% decrease. The decrease is attributable to a decrease
in Year 2000 expenses.
Business development expenses for the quarter ended March 31, 2000
were $83,350 as compared to $71,873 for the quarter ended March
31, 1999, a 16% increase. The increase is attributable to the
additional staff added to the mortgage and branch divisions
marketing the Bank's products.
Other operating expenses comprised primarily of advertising,
accounting, auto and travel, insurance and examinations, postage
and freight, data processing fees, printing and supplies and
Pennsylvania Shares Tax payments, during the quarter ended March
31, 2000 were $537,731, or approximately 27% of total non-interest
expenses. During the first quarter of 1999 other operating
expenses were $495,241 or approximately 22% of total expenses. The
9% increase from March 1999 to March 2000 in operating expenses is
attributable to additional branch expansion and asset growth.
Income tax expense of $34,264 was provided for the quarter ended
March 31, 2000. Income tax expense for the quarter ended March 31,
1999 was $128,900. This decrease in income tax expense is due to
the decrease in income before income taxes.
<PAGE>
INTEREST INCOME
Interest income on investment securities relates primarily to
interest on U.S. Government Obligations. Interest income of
$281,516 for the quarter ended March 31, 2000 increased from
$22,887 for the quarter ended March 31, 1999. The increase
is a direct result of an increase in the Bank's investment
portfolio.
Interest income on other securities is comprised primarily of
dividends from investments of Federal Home Loan Stock. First
quarter 2000 was $64,938 as compared to $11,097 first quarter
1999. The increase was due to increased investment in Federal
Home Loan Bank Stock.
Interest income on temporary investments represents Federal Funds
sold. At March 31, 2000, interest income on Federal Funds sold was
$8,417 as compared to $106,285 at March 31, 1999. The decrease was
a direct result of the change in the Company's liquidity position
through loan growth outpacing deposit growth.
Total interest and fees on loans at March 31, 2000 was $3,201,757
compared to $2,930,324 at March 31, 1999, representing a 9%
increase. The Company experienced a 5% average loan growth while
the yield on the portfolio increased from 9.74% to 10.00%. The
increased rates from March, 1999 to March, 2000 is reflective of a
rise in interest rates.
<PAGE>
PART II - OTHER INFORMATION
ITEMS 1 THROUGH 5
Not Applicable.
ITEM 6 EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits Filed
<TABLE>
<CAPTION>
Page Number in
Exhibit Number Sequential Numbering System
<S> <C> <C>
3 Amended and Restated Articles *
of Incorporation, as amended, and
Amended and Restated Bylaws of
the Issuer
27 Financial Data Schedule ----
</TABLE>
- --------------------
- - Incorporated by reference from the Issuer's Registration Statement on
Form S-1 No. 33-27146
(b) No current reports on Form 8-K were filed during the quarter
ended March 31, 2000.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Issuer
has duly caused this report to be signed on its behalf by the undersigned
thereunto duly authorized.
Madison Bancshares Group, Ltd.
------------------------------
Vito A. DeLisi
President
------------------------------
E. Cheryl Hinkle
Senior Vice President
Date Executed: May 12, 2000
<PAGE>
ANNEX A
<PAGE>
MADISON BANCSHARES GROUP, LTD. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Unaudited)
<TABLE>
<CAPTION>
March 31, 2000 December 31, 1999
------------------------- -------------------------
<S> <C> <C>
ASSETS
CASH AND CASH EQUIVALENTS:
Cash and amounts due from banks $ 6,076,831 $ 2,588,835
Federal funds sold 4,000,000 500,000
------------------------- -------------------------
Total cash and cash equivalents 10,076,831 3,088,835
INVESTMENT SECURITIES:
Held to maturity (fair value- 2000, $2,566,919;
1999, $2,567,857) 2,570,087 2,570,106
Available for sale (amortized cost; 2000, $17,055,284;
1999, $17,055,709) 16,717,580 16,749,747
Federal Home Loan Bank Stock 750,000 750,000
Federal Reserve Bank Stock 323,400 323,400
LOANS (Net of allowance for loan losses - 2000, $1,344,957;
1999, $1,262,256) 125,579,428 122,635,380
MORTGAGE LOANS HELD FOR SALE 3,620,276 5,418,972
REAL ESTATE OWNED 273,868 577,039
FURNITURE, EQUIPMENT AND LEASEHOLD IMPROVEMENTS, NET 1,980,091 1,661,814
ACCRUED INTEREST RECEIVABLE 1,130,343 1,281,928
OTHER ASSETS 885,706 785,189
------------------------- -------------------------
TOTAL $ 163,907,610 $ 155,842,410
========================= =========================
LIABILITIES AND SHAREHOLDERS' EQUITY
DEPOSITS:
Noninterest-bearing demand deposits $ 22,313,033 20,540,071
Interest-bearing demand deposits 13,684,621 12,704,649
Savings deposits 9,261,009 8,150,269
Money market deposits 15,969,038 15,205,159
Time deposits 78,083,775 73,738,315
------------------------- -------------------------
Total deposits 139,311,476 130,338,463
Borrowed funds 8,000,000 9,000,000
GUARANTEED PREFERRED BENEFICIAL INTEREST IN
SUBORDINATED DEBT 5,000,000 5,000,000
ACCRUED INTEREST PAYABLE 1,171,661 960,268
ACCRUED EXPENSES AND OTHER LIABILITIES 101,624 261,148
------------------------- -------------------------
Total Liabilities 153,584,761 145,559,879
------------------------- -------------------------
COMMITMENTS
SHAREHOLDERS' EQUITY:
Preferred stock, $5 par value - authorized 5,000,000 shares; issued and
outstanding, 0 shares
Common stock, $1 par value - authorized 20,000,000 shares;
issued and outstanding, 2000 1,756,320; and 1999 1,747,947 1,756,320 1,747,947
Capital surplus 8,769,336 8,745,557
Accumulated earnings (deficit) 20,078 (9,038)
Accumulated other comprehensive income (loss) (222,885) (201,935)
------------------------- -------------------------
Total shareholders' equity 10,322,849 10,282,531
------------------------- -------------------------
TOTAL $ 163,907,610 $ 155,842,410
========================= =========================
</TABLE>
See notes to consolidated financial statements
<PAGE>
MADISON BANCSHARES GROUP, LTD. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME
FOR THE PERIODS ENDED MARCH 31, 2000 AND 1999
(Unaudited)
<TABLE>
<CAPTION>
2000 1999
--------------- ---------------
<S> <C> <C>
Interest income:
Interest and fees on loans $ 3,201,757 $ 2,930,324
Interest and dividends on investment securities:
US Government obligations 281,516 22,887
Other securities 71,584 21,310
Interest on temporary investments 8,417 106,285
--------------- ---------------
3,563,274 3,080,806
--------------- ---------------
Interest expense:
Interest on:
Demand deposits 60,418 59,143
Savings and money market deposits 165,160 167,426
Time deposits 1,000,400 932,520
Guaranteed preferred beneficial interest in
subordinated debt 112,500 112,500
Federal funds purchased & other interest 161,016
--------------- ---------------
1,499,494 1,271,589
--------------- ---------------
Net interest income before provision for loan losses 2,063,780 1,809,217
Provision for loan losses 100,000 120,000
--------------- ---------------
Net interest income after provision for loan losses 1,963,780 1,689,217
--------------- ---------------
Other noninterest income:
Gain on sale of mortgage loans 351,778 620,969
Service charges on deposit accounts 150,048 173,683
Other 43,608 22,306
--------------- ---------------
Total noninterest income 545,434 816,958
--------------- ---------------
Other noninterest expenses:
Salary and employee benefits 1,390,647 1,286,460
Occupancy 300,395 253,902
Equipment 117,736 95,537
Computer processing 87,608 84,557
Deposit insurance 3,518 7,944
Legal 31,991 25,923
Professional fees 15,975 27,514
Business development 83,350 71,873
Office and stationary supplies 60,359 53,375
Director fees 29,675 35,300
Advertising 35,992 9,020
Amortization of debt issuance costs 12,630 12,630
Other operating 275,958 266,492
--------------- ---------------
Total noninterest expenses 2,445,834 2,230,527
--------------- ---------------
Income before income taxes 63,380 275,648
Provision for income taxes 34,264 128,900
--------------- ---------------
Net income (loss) $ 29,116 $ 146,748
=============== ===============
Net income per common share - basic $ 0.02 $ 0.09
=============== ===============
Net income per common share - diluted $ 0.02 $ 0.08
=============== ===============
Weighted average number of shares - basic 1,754,139 1,718,220
=============== ===============
Weighted average number of shares - diluted 1,787,008 1,799,570
=============== ===============
</TABLE>
See notes to consolidated financial statements
<PAGE>
MADISON BANCSHARES GROUP, LTD. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED MARCH 31, 2000 AND 1999
(Unaudited)
<TABLE>
<CAPTION>
2000 1999
------------------ -------------
<S> <C> <C>
Operating activities:
Net income $ 29,116 $ 146,748
Adjustments for non-cash items included in net income:
Depreciation and amortization 94,219 89,446
Provision for loan losses 100,000 120,000
Net amortization of bond premium/discount 11,236 1,780
Amortization of deferred fees & costs, net (42,247) 82,317
Gain on sale of mortgages held for sale (351,778) (620,969)
Changes in assets and liabilities which provided
(used) cash:
Mortgage loans held for resale 2,150,474 1,331,362
Accrued interest receivable 151,585 105,516
Other assets (100,517) (95,124)
Accrued interest payable 211,393 21,023
Accrued expenses and other liabilities (159,524) 96,227
------------------ -------------
Net cash provided by (used in) operating activities 2,093,957 1,278,326
------------------ -------------
Investing activities:
Purchase of investment securities held to maturity (2,200,000)
Proceeds from maturity of investment securities 530,000
Net change in loans to customers (3,001,801) 673,581
Purchase of furniture, equipment and leasehold
improvements (412,496) (63,390)
Proceeds on sale of real estate owned 303,171
------------------ -------------
Net cash used in investing activities (3,111,126) (1,059,809)
------------------ -------------
Financing activities:
Exercise of stock warrants 32,152
Increase in demand, savings and time deposits 8,973,013 2,701,580
Repayment of borrowed funds (1,000,000)
------------------ -------------
Net cash provided by (used in) financing activities 8,005,165 2,701,580
------------------ -------------
Net decrease in cash and cash equivalents 6,987,996 2,920,097
Cash and cash equivalents, beginning of year 3,088,835 15,293,484
------------------ -------------
Cash and cash equivalents, end of period $ 10,076,831 $ 18,213,581
================== =============
Supplemental disclosures of cash flow information:
Cash paid during the period for:
Interest $ 1,288,101 $ 1,250,566
================== =============
Income taxes paid $ 0 $ 50,000
================== =============
</TABLE>
See notes to consolidated financial statements
<PAGE>
MADISON BANCSHARES GROUP, LTD. AND SUBSIDIARY
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
MARCH 31, 2000
1. Basis of presentation:
The accompanying unaudited consolidated financial statements were
prepared in accordance with instructions for quarterly reports on Form
10-Q and, therefore, do not include information or footnotes necessary
for a complete presentation of financial condition, results of
operations, shareholders' equity and cash flows in conformity with
generally accepted accounting principles. However, the financial
statements reflect all adjustments which, in the opinion of management,
are necessary for fair presentation of financial results and that all
adjustments are of a normal recurring nature. The results of operations
for the three month periods ended March 31, 2000 and 1999 is not
necessarily indicative of the results which may be expected for the
entire fiscal year.
2. Principles of consolidation:
The consolidated financial statements include the accounts of Madison
Bancshares Group, Ltd. (the Company) and its wholly owned subsidiary,
The Madison Bank (the Bank). All material intercompany balances and
transactions have been eliminated.
3. Net income per share:
Basic net income per share is based upon the weighted average number of
common shares outstanding, while diluted net income per share is based
upon the weighted average number of common shares outstanding and
common share equivalents that would arise from the exercise of stock
options and stock warrants.
4. Comprehensive Income:
The Company adopted Statement of Financial Accounting Standards No.
130, Reporting Comprehensive Income, effective January 1, 1998. The
statement requires disclosure of amounts from transactions and other
events which are currently excluded from the statement of operations
and are recorded directly to shareholders' equity. Comprehensive income
for the three month period ended March 31, 2000 and 1999 was $8,166 and
$144,486, respectively.
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 9
<MULTIPLIER> 1,000
<CURRENCY> US DOLLARS
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-2000
<PERIOD-START> JAN-01-2000
<PERIOD-END> MAR-31-2000
<EXCHANGE-RATE> 1
<CASH> 6,077
<INT-BEARING-DEPOSITS> 0
<FED-FUNDS-SOLD> 4,000
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 16,718
<INVESTMENTS-CARRYING> 2,570
<INVESTMENTS-MARKET> 2,567
<LOANS> 130,545
<ALLOWANCE> 1,345
<TOTAL-ASSETS> 163,908
<DEPOSITS> 139,311
<SHORT-TERM> 8,000
<LIABILITIES-OTHER> 1,273
<LONG-TERM> 5,000
0
0
<COMMON> 1,756,320
<OTHER-SE> 8,567
<TOTAL-LIABILITIES-AND-EQUITY> 163,908
<INTEREST-LOAN> 3,202
<INTEREST-INVEST> 353
<INTEREST-OTHER> 8
<INTEREST-TOTAL> 3,563
<INTEREST-DEPOSIT> 1,226
<INTEREST-EXPENSE> 1,499
<INTEREST-INCOME-NET> 2,064
<LOAN-LOSSES> 100
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 2,446
<INCOME-PRETAX> 63
<INCOME-PRE-EXTRAORDINARY> 63
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 29
<EPS-BASIC> .02
<EPS-DILUTED> .02
<YIELD-ACTUAL> 979
<LOANS-NON> 1,292
<LOANS-PAST> 1,165
<LOANS-TROUBLED> 262
<LOANS-PROBLEM> 4,597
<ALLOWANCE-OPEN> 1,262
<CHARGE-OFFS> 24
<RECOVERIES> 7
<ALLOWANCE-CLOSE> 100
<ALLOWANCE-DOMESTIC> 0
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 1,345
</TABLE>
