<PAGE>
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
FORM 10-Q
QUARTERLY REPORT UNDER SECTION 13 OR 15 (d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 1996
SOUTHERN CRESCENT FINANCIAL CORP
(Exact name of registrant as specified in its charter)
Georgia 58-1845038
------------------------ ----------------------
(State of Incorporation) I.R.S. Employer Id. No.
1585 Southlake Parkway, Morrow, Georgia 30260
- --------------------------------------- ----------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code:
(404)-968-6868
- --------------
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 TWELVE MONTHS 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 JUNE 30, 1996.
CLASS OUTSTANDING
----- -----------
Common Stock $1 par value 838,162
<PAGE>
SOUTHERN CRESCENT FINANCIAL CORP
PART I Financial Information
- ------
Item 1: Financial Statements
- -------
Financial Statements: The following consolidated financial statements have not
- ---------------------
been audited or reported upon by the Company's Independent Certified Public
Accountants nor have such financial statements been reviewed by them. These
financial statements have been prepared pursuant to the rules and regulations of
the Securities and Exchange Commission. Certain information and footnote
disclosures normally included in financial statements prepared in accordance
with generally accepted accounting principles have been condensed or omitted
pursuant to such rules and regulations. The consolidated financial statements
furnished herein reflect all adjustments, consisting only of normal recurring
accruals, which are, in the opinion of management, necessary for a fair
statement of the results of the periods for which they are presented. Such
results, however, are not necessarily indicative of the results to be expected
for the full year.
These consolidated financial statements should be read in conjunction
with the December 31, 1995, consolidated financial statements and notes thereto
and the Report of the Independent Certified Public Accountants included in the
Company's Annual Report on Form 10-K dated December 31, 1995, as filed with the
Securities and Exchange Commission.
2
<PAGE>
Southern Crescent Financial Corp
and its wholly-owned subsidiary,
Southern Crescent Bank
CONSOLIDATED BALANCE SHEETS
ASSETS
(Unaudited)
<TABLE>
<CAPTION>
June 30, December 31,
1996 1995
----------- ------------
<S> <C> <C>
Cash and due from banks $ 7,298,592 $ 7,504,913
Federal funds sold 910,000 6,740,000
Interest-bearing deposits in banks - 99,000
Investment securities available for sale 27,258,330 25,566,236
Loans, less allowance for loan losses of $1,306,744
and $1,273,091, respectively 84,543,668 71,793,982
Premises and equipment 5,037,868 5,215,272
Accrued interest receivable and other assets 4,599,142 2,638,738
----------- -----------
$129,647,600 $119,558,141
============ ============
</TABLE>
3
<PAGE>
LIABILITIES
<TABLE>
<CAPTION>
June 30, December 31,
1996 1995
------------ ------------
<S> <C> <C>
Deposits:
Non-interest bearing demand $ 16,395,409 $ 14,873,708
Interest bearing demand 30,070,938 29,072,134
Savings 4,508,847 4,440,957
Certificates of deposit, $100,000 and over 13,527,314 15,339,696
Other certificates of deposit 50,929,715 43,211,159
------------ ------------
Total deposits 115,432,223 106,937,654
Securities sold under repurchase agreements 1,468,040 1,577,784
Accrued interest payable and other liabilities 3,449,302 1,946,607
------------ ------------
Total liabilities 120,349,565 110,462,045
</TABLE>
STOCKHOLDERS' EQUITY
<TABLE>
<CAPTION>
<S> <C> <C>
Preferred stock, $1 par value; authorized
10,000,000 shares; no shares outstanding - -
Common stock, $1 par value; authorized
10,000,000 shares; 843,482 and 803,867
shares issued, respectively 843,482 803,867
Paid-in capital 7,607,833 7,229,475
Unrealized depreciation on securities available
for sale, net of tax (178,136) 34,647
Retained earnings 1,071,570 1,074,821
------------ ------------
9,344,749 9,142,810
Less treasury stock at cost, 5,320 and 5,128
shares, respectively (46,714) (46,714)
------------ ------------
Total stockholders' equity 9,298,035 9,096,096
------------ ------------
$129,647,600 $119,558,141
============ ============
</TABLE>
The accompanying notes are an integral part of these statements.
4
<PAGE>
Southern Crescent Financial Corp
and its wholly-owned subsidiary,
Southern Crescent Bank
CONSOLIDATED STATEMENTS OF EARNINGS
(Unaudited)
<TABLE>
<CAPTION>
Quarter ended Six-month period ended
-------------------------------------------------------------
June 30, June 30, June 30, June 30,
1996 1995 1996 1995
------------ ------------ ------------- ------------
<S> <C> <C> <C> <C>
Interest income
Interest and fees on loans $ 2,158,963 $ 1,694,185 $4,150,401 $3,197,155
Interest and dividends
on investments 353,009 379,165 711,538 817,076
Interest on federal funds sold 89,789 109,114 179,329 162,039
---------- ---------- ---------- ----------
2,601,761 2,182,464 5,041,268 4,176,270
Interest expense:
Interest on certificates of deposit
of $100,000 or more 199,920 149,984 398,014 274,106
Interest on other deposits 952,223 822,487 1,882,883 1,552,965
---------- ---------- ---------- ----------
1,152,143 972,471 2,280,897 1,827,071
---------- ---------- ---------- ----------
Net interest income before
provision for loan losses 1,449,618 1,209,993 2,760,371 2,349,199
Provision for loan losses - - - -
---------- ---------- ---------- ----------
Net interest income 1,449,618 1,209,993 2,760,371 2,349,199
Other income:
Service charges on deposit
accounts 179,266 191,483 362,241 385,036
Other income 72,356 46,345 153,833 118,298
---------- ---------- ---------- ----------
251,622 237,828 516,074 503,334
</TABLE>
(Continued)
5
<PAGE>
Southern Crescent Financial Corp
and its wholly-owned subsidiary,
Southern Crescent Bank
CONSOLIDATED STATEMENTS OF EARNINGS - CONTINUED
(Unaudited)
<TABLE>
<CAPTION>
Quarter ended Six-month period ended
------------------------- --------------------------
June 30, June 30, June 30, June 30,
1996 1995 1996 1995
------------- ---------- ------------ ------------
<S> <C> <C> <C> <C>
Operating expenses:
Salaries and employee benefits 640,270 554,311 1,274,849 1,120,436
Occupancy expenses 180,370 200,225 380,083 405,653
Other operating expenses 329,409 383,080 676,179 756,112
---------- ---------- ---------- ----------
1,150,049 1,137,616 2,331,111 2,282,201
---------- ----------- ---------- ----------
Earnings before
income taxes 551,191 310,205 945,334 570,332
Income taxes:
Current 170,633 65,145 292,702 119,604
Deferred 22,283 43,430 38,224 79,736
---------- ---------- ---------- ----------
192,916 108,575 330,926 199,340
----------- ---------- ---------- ----------
NET EARNINGS $ 358,275 $ 201,630 $ 614,408 $ 370,992
========== ========== ========== ==========
Earnings per common share
Primary .43 .25 .74 .46
Fully diluted .43 .24 .74 .45
Weighted average common
shares outstanding:
Primary 824,911 803,867 827,893 803,867
Fully diluted 824,911 832,935 827,893 832,935
</TABLE>
The accompanying notes are an integral part of these statements.
6
<PAGE>
Southern Crescent Financial Corp
and its wholly-owned subsidiary,
Southern Crescent Bank
CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY
For the six-month period ended June 30, 1996
(Unaudited)
<TABLE>
<CAPTION>
Unrealized
Common Paid-in loss on Retained Treasury
stock capital securities earnings stock Total
-------------- ----------- ----------- ----------- ---------- -----------
<S> <C> <C> <C> <C> <C> <C>
Balance at December 31, 1995 $803,867 $7,229,475 $ 34,647 $1,074,821 $ (46,714) $9,096,096
Net earnings for the quarter - - - 256,133 - 256,133
Change in unrealized loss
on securities available
for sale - - (58,971) - - (58,971)
-------- ----------- ----------- ----------- ---------- -----------
Balance at March 31, 1996 803,867 7,229,475 (24,324) 1,330,954 (46,714) 9,293,258
Net earnings for the quarter - - - 358,275 - 358,275
Stock dividend - shares 39,615 378,358 - (417,973) - -
Cash dividend - - - (199,686) - (199,686)
Change in unrealized loss
on securities available
for sale - - (153,812) - - (153,812)
-------- ----------- ---------- ----------- ---------- -----------
Balance at June 30, 1995 $ 843,482 $7,607,833 $ (178,136) $1,071,570 $ (46,714) $9,298,035
============ =========== ========== =========== ========== ===========
</TABLE>
The accompanying notes are an integral part of this statement.
7
<PAGE>
Southern Crescent Financial Corp
and its wholly-owned subsidiary,
Southern Crescent Bank
CONSOLIDATED STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
Six-month period ended
-------------------------
June 30, June 30,
1996 1995
----------- ------------
<S> <C> <C>
Cash flows from operating activities:
Net earnings $ 614,408 $ 370,992
Adjustments to reconcile net earnings to
net cash provided by operating activities:
Depreciation and amortization 203,760 245,906
Deferred income tax expense 38,224 79,736
Gain on sale of investment securities (5,686) (863)
Gain on sale of SBA loans - (26,790)
Gain on sale of real estate owned (3,817) (2,410)
Changes in assets and liabilities:
Accrued interest receivable and other assets (2,244,678) 71,720
Accrued interest payable and other liabilities 1,464,471 172,972
------------ -----------
Net cash provided by operating activities 66,682 911,263
Cash flows from investing activities:
Maturity of interest-bearing deposits in banks 99,000 393,000
Purchase of investment securities (13,513,721) (2,290,000)
Proceeds from sales of investment securities 4,772,336 1,404,062
Proceeds from maturities of investment securities 6,842,194 4,050,149
Net investment from issuance and
collection of loans made to customers (12,749,686) (7,889,681)
Proceeds from sale of real estate owned 267,753 10,130
Capital expenditures (6,018) (518,354)
Decrease in federal funds sold 5,830,000 2,390,000
------------ -----------
Net cash used in investing activities (8,458,142) (2,450,694)
Cash flows from financing activities:
Net increase in deposits 8,494,569 2,660,481
Net increase (decrease) in securities
sold under repurchase agreements (109,744) 589,968
Cash dividends paid (199,686) -
---------- ------------
Net cash provided by financing activities 8,185,139 3,250,449
Net increase (decrease) in cash and due from banks (206,321) 1,711,018
Cash and due from banks at beginning of period 7,504,913 5,433,371
------------ -----------
Cash and due from banks at end of period $7,298,592 $7,144,389
========== ===========
</TABLE>
The accompanying notes are an integral part of these statements.
8
<PAGE>
Southern Crescent Financial Corp
and its wholly-owned subsidiary,
Southern Crescent Bank
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
For the quarter ended June 30, 1996
(Unaudited)
NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A summary of the significant accounting policies consistently applied, except
as otherwise disclosed, in the preparation of the accompanying consolidated
financial statements follows.
1. Nature of Operations
--------------------
The Company's operations are conducted by its wholly-owned subsidiary, Southern
Crescent Bank (the "Bank"). The Bank is engaged in the commercial banking
business in the southern metropolitan Atlanta area. The Bank's business
consists primarily of attracting deposits from the general public and, with
these and other funds, making real estate loans, consumer loans, business
loans, residential and commercial construction loans and other investments.
Investments of the Bank include obligations of federal, state and local
governments as well as mortgage backed securities.
2. Principles of Consolidation
---------------------------
The consolidated financial statements include the accounts of Southern Crescent
Financial Corp (the "Company") and its wholly-owned subsidiary, Southern
Crescent Bank. All significant intercompany transactions and accounts have
been eliminated.
3. Investment Securities
---------------------
The Company's investments have been classified among the following three
categories and accounted for based on such classifications:
Securities to be held to maturity - debt securities that the Company has the
---------------------------------
positive intent and ability to hold to maturity are reported at amortized
cost.
Trading securities - debt and equity securities that are bought and held
------------------
principally for the purpose of selling them in the near term are reported at
fair value, with unrealized gains and losses included currently in income.
Securities available for sale - debt and equity securities classified as
-----------------------------
neither held to maturity nor trading securities are reported at fair value,
with unrealized gains and losses excluded from income and reported as a
separate component of stockholders' equity.
Declines in the fair value of individual held to maturity and available for
sale securities below their cost that are other than temporary would be
accounted for through a write-down of the individual securities. No securities
required such a write-down during the quarter ended June 30, 1996.
9
<PAGE>
Southern Crescent Financial Corp
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
For the quarter ended June 30, 1996
(Unaudited)
NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
3. Investment Securities - Continued
---------------------------------
Market values of state, county and municipal securities are influenced by their
partial exemption from federal taxation. Accordingly, changes in taxation of
income from these securities could have an effect on their fair value.
Unrealized holding gains and losses, net of income tax, on securities available
for sale are reported as a net amount in a separate component of stockholders'
equity until realized. Gains and losses on the sale of securities available
for sale are determined using the specific identification method.
4. Loans and Allowance for Loan Losses
-----------------------------------
Loans are stated at the amount of unpaid principal, reduced by net unearned
loan origination fees. Fees for loan origination and commitments and related
origination costs are deferred and recognized as an interest income yield
adjustment over the terms of the loans using the interest method. Interest
income on commercial, amortized and consumer loans is primarily recognized
based on the principal amounts outstanding.
The allowance for loan losses is maintained at a level adequate to absorb
probable losses. Provisions for loan losses and recoveries on loans previously
charged off are added to the allowance, while loans deemed to be uncollectible
are charged to the allowance. The balance in the allowance for loan losses is
based on management's analysis of the loan portfolio and loan commitments. It
reflects an estimated amount which, in management's judgment, is adequate to
provide for potential loan losses after giving consideration to the character
of the loan portfolio, current economic conditions, past loan loss experience,
specific problem loans, adequacy of the underlying collateral and other
factors.
Impaired loans are measured based upon the present value of expected future
cash flows discounted at the loan's effective interest rate or, as a practical
expedient, at the loans observable market price or the fair value of the
collateral if the loan is collateral dependent. A loan is defined as impaired
when, based on current information and events, it is probable that a creditor
will be unable to collect all amounts due according to the contractual terms of
the loan agreement. Cash receipts on impaired loans are recognized as interest
income or principal repayment as received.
10
<PAGE>
Southern Crescent Financial Corp
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
For the quarter ended June 30, 1996
(Unaudited)
NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
4. Loans and Allowance for Loan Losses - Continued
-----------------------------------------------
The Company extends credit to customers primarily in the southern portion of
the metropolitan Atlanta, Georgia area. A substantial portion of the Company's
loans are secured by real estate and business assets located in this area.
Accordingly, the collectibility and collateral value of a substantial portion
of the Company's loans are dependent on the economy in this area. Because
management's estimate of the allowance for loan losses is dependent upon the
economy in this area, it is reasonably possible that a change in the allowance
for loan losses and the provision for loan loss expense could occur in the near
term due to changes in local economic conditions.
5. Premises and Equipment
----------------------
Premises and equipment are stated at cost less accumulated depreciation.
Depreciation is provided in amounts sufficient to relate the cost of
depreciable assets to operations over their estimated service lives,
principally on a straight-line basis.
6. Securities Sold Under Agreements to Repurchase
----------------------------------------------
Securities sold under agreements to repurchase generally mature within one to
four days from the transaction date.
7. Income Taxes
------------
Deferred income taxes are provided for the temporary differences between the
financial reporting basis and the income tax basis of the Company's assets and
liabilities at tax rates in effect when the differences become payable.
Deferred tax assets are recorded for future tax effects of temporary
differences subject to a valuation allowance if it is more likely than not that
some of the future benefits will not be recognized.
11
<PAGE>
Southern Crescent Financial Corp
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
For the quarter ended June 30, 1996
(Unaudited)
NOTE B - LOANS
Loans at June 30, 1996 and December 31, 1995 are summarized as follows:
<TABLE>
<CAPTION>
June 30, December 31,
1996 1995
------------ -------------
<S> <C> <C>
Commercial $53,361,287 $50,143,952
Real estate construction 14,885,110 12,526,573
Loans to individuals 17,881,853 10,641,437
----------- -----------
Total loans 86,128,250 73,311,962
Less unearned discount and loan fees (277,838) (244,889)
----------- -----------
85,850,412 73,067,073
Less allowance for loan losses (1,306,744) (1,273,091)
----------- -----------
Net loans $84,543,668 $71,793,982
=========== ===========
</TABLE>
At June 30, 1996 and December 31, 1995, there were $85,217 and $572,763,
respectively, of loans outstanding for which the accrual of interest had been
suspended or reduced.
NOTE C - REGULATORY CAPITAL REQUIREMENTS
As of June 30, 1996, the Bank's risk-based capital ratios exceeded minimum
regulatory requirements.
12
<PAGE>
Item 2: Management's Discussion and Analysis of
Financial Condition and Results of Operations
SOUTHERN CRESCENT FINANCIAL CORP
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS
Southern Crescent Financial Corp (the "Company") was incorporated under the laws
of the State of Georgia on April 27, 1989, for the purpose of becoming a bank
holding company. The Company completed its initial offering in March of 1990
after selling a total of 600,000 shares and raising $6,000,000. The Company's
subsidiary bank, Clayton National Bank (the "Bank") opened for business on March
8, 1990.
The Company acquired all of the outstanding stock of Southside Bank and Trust in
1993. Southside Bank and Trust operated two locations in south Fulton County.
The two offices of Southside operate along with the Morrow office of the Bank as
full service facilities. The Bank changed its name to Southern Crescent Bank,
converted to a State chartered institution and surrendered its National charter
on November 12, 1993.
The Company reported net earnings for the second quarter of $358,275, or $.42
per common share, compared with $201,630 or $.25 per share, for the comparable
quarter in 1995. These increased earnings are attributable principally to the
increased volume of earnings assets in 1996, as compared to 1995. Net interest
income was up by $239,625 (a 24.6% increase) for the second quarter of 1996 over
1995. Net interest income was up $411,172 (a 17.5% increase) for the first six
months of 1996 over 1995. Almost all of this increase over the comparable
period in 1995 was volume related.
The provision for income taxes in the second quarter of 1996 of $192,916, or 35%
of pre-tax income, was similar to the 35% provision in the comparable quarter in
1995.
The allowance for loan losses totaled $1,306,744, or 1.52% of loans, at June 30,
1996, as compared to $1,341,225, or 2.0% of loans, at June 30, 1995. Loans on
nonaccrual were down by 90% at June 30, 1996, from June 30, 1995.
The Company's total stockholders' equity was $9,298,035, or 7.1% of total assets
at June 30, 1996, as compared to $9,096,096, or 7.6% of total assets at December
31, 1995. The Company's ratios of Tier 1 capital to risk based assets, total
capital to risk based assets, and Tier 1 capital to total assets exceeded
regulatory requirements at June 30, 1996.
13
<PAGE>
Item 2: Management's Discussion and Analysis of
Financial Condition and Results of Operations
SOUTHERN CRESCENT FINANCIAL CORP
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS - CONTINUED
During the second quarter of 1996, the Bank received regulatory approval to
establish a Denovo Branch Bank at 285 Jonesboro Road in McDonough, Georgia.
After, receiving this approval, the Bank acquired approximately one acre of land
at this address to be the future site of its first office in Henry County. The
Bank also filed an application for a new branch location in Jonesboro, Georgia
in Clayton County with the intent of establishing a branch office scheduled to
open late third quarter of 1996.
The holding company, Southern Crescent Financial Corp, declared its first cash
dividend of $.25 per share on May 23, 1996 with a record date of June 7th
payable on June 30. In addition, the Company declared a 5% stock dividend
payable after the calculation of the cash dividend.
The management and Board of Directors continue to focus on the needs of our
communities and strive to develop a bank that can do its share to meet these
needs. Our goal will continue to be the building of shareholder value through
long-term controlled growth and profitability.
14
<PAGE>
Part II: Other Information
Item 6(a) Exhibits
Exhibit 11 - statement regarding computation of per-share
earnings
Signatures
Pursuant to the requirements of Section 13 or 15 (d) of the Securities Exchange
Act of 1934, the registrant has duly caused this report to be signed on its
behalf by the undersigned, whereunto duly authorized.
SOUTHERN CRESCENT FINANCIAL CORP
/s/ Charles M. Buckner
----------------------
August 6, 1996 Charles M. Buckner
(PRINCIPAL FINANCIAL
OFFICER)
/s/ Howard Wilson
---------------------
August 6, 1996 Howard Wilson
(ACCOUNTING OFFICER)
15
<PAGE>
FORM 10-Q PAGE 16
EXHIBIT II
<TABLE>
<CAPTION>
STATEMENTS OF PER SHARE EARNINGS
Quarter ended Six months ended
------------------------- --------------------
June 30, June 30, June 30, June 30,
1996 1995 1996 1995
------------ ----------- -------- -----------
<S> <C> <C> <C> <C>
Earnings per common share
Primary .43 .25 .74 .46
Fully diluted .43 .24 .74 .45
Weighted average common
shares outstanding:
Primary 824,911 803,867 827,893 803,867
Fully diluted 824,911 832,935 827,893 832,935
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 9
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM
SOUTHERN CRESCENT FINANCIAL CORPORATION AND IS QUALIFIED IN ITS ENTIRETY BY
REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<S> <C> <C>
<PERIOD-TYPE> 3-MOS 6-MOS
<FISCAL-YEAR-END> DEC-31-1996 DEC-31-1996
<PERIOD-START> APR-01-1996 JAN-01-1996
<PERIOD-END> JUN-30-1996 JUN-30-1996
<CASH> 7,298,592 7,298,592
<INT-BEARING-DEPOSITS> 0 0
<FED-FUNDS-SOLD> 910,000 910,000
<TRADING-ASSETS> 0 0
<INVESTMENTS-HELD-FOR-SALE> 27,258,330 27,258,330
<INVESTMENTS-CARRYING> 0 0
<INVESTMENTS-MARKET> 0 0
<LOANS> 84,543,668 84,543,668
<ALLOWANCE> 1,306,744 1,306,744
<TOTAL-ASSETS> 129,647,600 129,647,600
<DEPOSITS> 115,432,223 115,432,223
<SHORT-TERM> 0 0
<LIABILITIES-OTHER> 4,917,342 4,917,342
<LONG-TERM> 0 0
0 0
0 0
<COMMON> 843,482 843,482
<OTHER-SE> 8,454,553 8,454,553
<TOTAL-LIABILITIES-AND-EQUITY> 129,647,600 129,647,600
<INTEREST-LOAN> 2,158,963 4,150,401
<INTEREST-INVEST> 353,009 711,538
<INTEREST-OTHER> 89,789 179,329
<INTEREST-TOTAL> 2,601,761 5,041,268
<INTEREST-DEPOSIT> 1,152,143 2,280,897
<INTEREST-EXPENSE> 1,152,143 2,280,897
<INTEREST-INCOME-NET> 1,449,618 2,760,371
<LOAN-LOSSES> 0 0
<SECURITIES-GAINS> 0 0
<EXPENSE-OTHER> 1,150,049 2,331,111
<INCOME-PRETAX> 551,191 945,334
<INCOME-PRE-EXTRAORDINARY> 0 0
<EXTRAORDINARY> 0 0
<CHANGES> 0 0
<NET-INCOME> 358,275 614,408
<EPS-PRIMARY> .43 .74
<EPS-DILUTED> .43 .74
<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>
