UNITED STATES
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 SEPTEMBER 30, 1997
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 018261
COMMUNITY FINANCIAL CORPORATION
(Exact name of small business issuer as specified in its charter)
VIRGINIA 54-1532044
(State of other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
38 North Central Ave., Staunton, Va. 24401
(Address of principal executive offices zip code)
(540) 886-0796
(Issuer's telephone number, including area code)
Check whether the issuer (1) 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 issuer was required to file such
reports), and (2) has been subject to such filing requirements for the past 90
days.
Yes X No
Number of shares of Common Stock, par value per share, $.01, outstanding at the
close of business on October 31, 1997: 1,277,123.
Transitional Small Business Disclosure Format (Check one)
Yes No X
<PAGE>
COMMUNITY FINANCIAL CORPORATION
INDEX
PART I. FINANCIAL INFORMATION PAGE
Item 1. Financial Statements
Consolidated Statements of Financial
Condition at September 30, 1997 (unaudited)
and March 31, 1997.............................................1
Consolidated Statements of Income for the Three and
Six Months Ended September 30, 1997 and 1996 (unaudited).......2
Consolidated Statements of Cash Flows for the
Six Months Ended September 30, 1997 and 1996 (unaudited).......3
Notes to Unaudited Interim Consolidated
Financial Statements...........................................4
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations............................7
PART II. OTHER INFORMATION - II-1..................................10
Signature Page................................................11
Exhibit Index.................................................12
<PAGE>
PART I
COMMUNITY FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
September 30, March 31,
1997 1997
------------ -------------
(Unaudited)
ASSETS
Cash (including interest bearing
deposits of approximately
$1,556,000 and $1,015,000) ................. $ 6,104,678 $ 4,922,213
Securities
Held to maturity ........................... 6,607,199 5,197,437
Available for sale ......................... 2,901,780 2,243,220
Investment in Federal Home Loan
Bank stock, at cost ........................ 1,600,000 1,400,000
Loans receivable, net ........................ 160,837,701 148,905,485
Real estate owned ............................ 191,123 173,245
Property and equipment, net .................. 3,550,415 3,542,108
Accrued interest receivable
Loans ...................................... 968,934 851,365
Investments ................................ 157,078 138,073
Prepaid expenses and other assets ............ 359,566 334,036
$183,278,474 $167,707,182
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Deposits ..................................... $128,238,136 $116,594,885
Advances from Federal Home Loan
Bank ....................................... 29,000,000 26,000,000
Advance payments by borrowers for
taxes and insurance ........................ 140,495 135,561
Other liabilities ............................ 1,686,762 1,639,740
Total Liabilities .................... 159,065,393 144,370,186
Stockholders' Equity
Preferred stock $.01 par value,
authorized 3,000,000 shares,
none outstanding
Common stock, $.01 par value,
authorized 10,000,000 shares,
1,275,373 and 1,275,348 shares
outstanding .............................. 12,754 12,753
Additional paid in capital ................. 4,717,177 4,716,677
Retained earnings .......................... 17,734,022 17,266,745
Net unrealized gain on securities
available for sale ....................... 1,749,128 1,340,821
Total Stockholders' Equity .............. 24,213,081 23,336,996
$183,278,474 $167,707,182
See accompanying notes to consolidated financial statements.
1
<PAGE>
COMMUNITY FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
Three Months Ended Six Months Ended
September 30, September 30,
------------------ -----------------
1997 1996 1997 1996
---- ---- ---- ----
(Unaudited) (Unaudited)
INTEREST INCOME
Loans ................... $3,341,335 $3,005,534 $6,552,877 $5,990,408
Investment securities ... 138,383 119,681 260,302 246,519
Other ................... 30,650 25,474 60,473 57,690
Total interest income . 3,510,368 3,150,689 6,873,652 6,294,617
INTEREST EXPENSE
Deposits ................ 1,467,783 1,251,220 2,778,580 2,494,925
Borrowed money .......... 406,634 349,117 824,994 738,314
Total interest expense 1,874,417 1,600,337 3,603,574 3,233,239
NET INTEREST INCOME ....... 1,635,951 1,550,352 3,270,078 3,061,378
PROVISION FOR LOAN LOSSES . 367,630 69,647 392,630 102,638
NET INTEREST INCOME AFTER
PROVISION FOR LOAN LOSSES 1,268,321 1,480,705 2,877,448 2,958,740
NONINTEREST INCOME
Service charges, fees
and commissions ....... 173,283 128,668 332,208 244,571
Miscellaneous ........... 1,000 1,126 10,786 2,732
Total noninterest
income .............. 174,283 129,794 342,994 247,303
NONINTEREST EXPENSE
Compensation & benefits . 442,480 298,884 866,697 584,615
Occupancy ............... 111,550 98,921 226,352 198,243
Data processing ......... 105,797 80,719 207,651 174,775
Federal insurance premium 18,017 732,469 36,287 794,100
Miscellaneous ........... 240,899 251,459 567,780 426,542
Total noninterest
expense ............. 918,743 1,462,452 1,904,767 2,178,275
INCOME BEFORE TAXES ....... 523,861 148,047 1,315,675 1,027,768
INCOME TAXES .............. 194,657 53,548 491,298 383,482
NET INCOME ................ $ 329,204 $ 94,499 $ 824,377 $ 644,286
EARNINGS PER SHARE ........ $ 0.26 $ 0.08 $ 0.65 $ 0.51
DIVIDENDS PER SHARE ....... $ 0.14 $ 0.13 $ 0.28 $ 0.26
See accompanying notes to consolidated financial statements.
2
<PAGE>
COMMUNITY FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
Six Months Ended
September 30,
-----------------------------
1997 1996
---- ----
(Unaudited)
OPERATING ACTIVITIES
Net income ................................... $ 824,377 $ 644,286
Adjustments to reconcile net income to
net cash provided by operating activities
Provision for loan losses ................. 392,630 102,638
Depreciation .............................. 112,728 110,838
Amortization of premium and accretion
of discount on securities, net .......... 387 (3,624)
(Decrease) in net deferred loan fees ....... (59,255) (33,542)
Increase in deferred income taxes ......... 11,690 28,596
Decrease (increase) in other assets ....... (179,982) (155,988)
Increase (decrease) in other liabilities .. (98,435) 616,505
(Gain)loss on sale of loans ............... 7,174 (6,391)
Proceeds from sale of loans ............... 1,318,800 338,000
Loans originated for resale ............... (1,764,800) (371,000)
Net cash provided by operating activities ... 565,314 1,270,318
INVESTING ACTIVITIES
Proceeds from maturities of held for
investment securities ...................... 750,000 750,000
Purchases of investment securities ........... (2,149,375) (498,281)
Net decrease (increase) in loans ............. (11,940,842) (1,288,295)
Purchases of property and equipment .......... (129,282) (19,502)
Redemption (purchase) of FHLB stock .......... (200,000) -0-
Net cash provided (absorbed) by
investing activities ..................... (13,669,499) (1,056,078)
FINANCING ACTIVITIES
Dividends paid ............................... (357,101) (330,622)
Net increase (decrease) in deposits .......... 11,643,251 873,936
Proceeds from advances and other
borrowed money .............................. 48,000,000 31,000,000
Repayments of advances and other
borrowed money .............................. (45,000,000) (32,000,000)
Proceeds from issuance of common stock ....... 500 9,400
Net cash provided (absorbed) by
financing activities ......................... 14,286,650 (447,286)
INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS .................................. 1,182,465 (233,046)
CASH AND CASH EQUIVALENT-beginning of period ... 4,922,213 3,673,085
CASH AND CASH EQUIVALENTS-end of period ........ $ 6,104,678 $ 3,440,039
See accompanying notes to consolidated financial statements.
3
<PAGE>
COMMUNITY FINANCIAL CORPORATION
NOTES TO UNAUDITED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
September 30, 1997
NOTE 1. - BASIS OF PRESENTATION
The accompanying unaudited interim consolidated financial statements have been
prepared in accordance with generally accepted accounting principles for interim
financial information and with the instructions to Form 10-QSB and Rule 10-01 of
Regulation S-X. Accordingly, they do not include all of the information and
footnotes required by generally accepted accounting principles for complete
financial statements.
The accompanying consolidated financial statements include the accounts of
Community Financial Corporation(the "Company") and its wholly-owned subsidiary,
Community Bank(the "Bank"). All significant intercompany balances and
transactions have been eliminated in consolidation.
In the opinion of management, all adjustments (consisting of normal recurring
accruals) considered necessary for fair presentation have been included.
Operating results for the three and six months ended September 30, 1997, are not
necessarily indicative of the results that may be expected for the year ending
March 31, 1998.
NOTE 2. - EARNINGS PER SHARE
Earnings per share is computed based on the weighed average number of shares of
common stock outstanding during each period including the assumed exercise of
dilutive stock options, and is retroactively adjusted for stock dividends and
stock splits. Earnings per share for the three months ended September 30, 1997
and 1996 have been determined by dividing net income by the weighted average
number of shares of common stock outstanding during these periods (1,275,373 and
1,272,048, respectively). Earnings per share for the six months ended September
30, 1997 and 1996 have been determined by dividing net income by the weighted
average number of shares of common stock outstanding during these periods
(1,275,364 and 1,271,404, respectively).
NOTE 3. - REGULATORY CAPITAL AND DIVIDENDS DISCUSSION
The following table presents the Bank's capital levels at September 30, 1997,
relative to the Office of Thrift Supervision (the "OTS")requirements applicable
at that date:
Amount Percent Actual Actual Excess
Required Required Amount Percent Amount
---------- --------- --------- ------- -----------
Tangible Capital $ 2,730,000 1.50% $20,638,000 11.34% $17,908,000
Core Capital 5,460,000 3.00 20,638,000 11.34 15,178,000
Risk-based Capital 10,047,000 8.00 21,633,000 17.23 11,586,000
4
<PAGE>
NOTE 3. - REGULATORY CAPITAL AND DIVIDEND DISCUSSION (cont.)
Capital distributions by the Bank are limited by federal regulations ("Capital
Distribution Regulation"). Capital distributions are defined to include, in
part, dividends, stock repurchases and cash-out mergers. The Capital
Distribution Regulation permits a "Tier 1" association to make capital
distributions during a calendar year up to 100% of its net income to date plus
the amount that would reduce by one-half its surplus capital ratio at the
beginning of the calendar year. Any distributions in excess of that amount
require prior notice to the Office of Thrift Supervision ("OTS") with the
opportunity for OTS to object to the distribution. A Tier 1 association is
defined as an association that has, on a pro forma basis after the proposed
distribution, capital equal to or greater than the OTS fully phased-in capital
requirement and has not been deemed by the OTS to be "in need of more than
normal supervision". The Bank is currently classified as a Tier 1 institution
for these purposes. The Capital Distribution Regulation requires that
associations provide the applicable OTS District Director with a 30-day advance
written notice of all proposed capital distributions whether or not advance
approval is required by the regulation.
NOTE 4. - SUPPLEMENTAL INFORMATION - STATEMENT OF CASH FLOWS
Total interest paid for the three months ended September 30, 1997 and 1996 was
$1,933,092 and $1,564,454, respectively. Total interest paid for the six months
ended September 30, 1997 and 1996 was $3,656,985 and $3,097,528. Total income
taxes paid for the three months ended September 30, 1997 and 1996 was $566,392
and $548,660. Total income taxes paid for the six months ended September 30,
1997 and 1996 was $669,392 and $548,660.
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS.
FINANCIAL CONDITION
The Company's total assets increased $15.5 million to $183.3 million at
September 30, 1997, due primarily to a increase in loans of $11.9 million. The
increase in loans receivable was due primarily to the origination of variable
rate mortgage loans and consumer loans. Deposits increased $11.6 million to
$128.2 million at September 30, 1997, from $116.6 million at March 31, l997
while Federal Home Loan Bank advances increased during the same period from
$26.0 million to $29.0 million. The increase in deposits and advances was used
primarily to fund the increase in loans. Stockholders' equity increased to $24.2
million at September 30, 1997, from $23.3 million at March 31, 1997, due
primarily to earnings for the six month period ended September 30, 1997 and an
adjustment in the market value of Federal Home Loan Mortgage Corporation stock,
which was partially offset by two payments of $0.14 per share in cash dividends.
At September 30, 1997, the Bank's non-performing assets totalled $1.0 million or
0.56% of assets compared to $676,000 or .40% of assets at March 31, 1997. At
September 30, 1997 the Company's non-performing assets were comprised of eight
residential rental properties which were more than ninety days past due and
various consumer loans which includes loans in the amount of $220,000 which are
current as to interest but are considered delinquent due to a lack of current
loan agreements. Also included in non-performing assets is
5
<PAGE>
approximately $191,000 of one-to-four residential rental properties which were
acquired by foreclosure and various repossessed vehicles. Based on current
market values of the collateral securing these loans, management anticipates no
significant losses in excess of the reserves for losses previously recorded. At
September 30, 1997 the Company's allowance for loan losses totalled $1,079,314
or .67% of net loans receivable and 106% of non-performing loans, compared to
$1,039,013 or .70% of net loans receivable and 154% of non- performing loans at
March 31, 1997. See "Results of Operations -Three Months Ended September 30,
1997 and 1996 - Provision for Loan Losses."
Management establishes an allowance for loan losses based on an analysis of risk
factors in the loan portfolio. This analysis includes the evaluation of
concentrations of credit, past loss experience, current economic conditions,
amount and composition of the loan portfolio, estimated fair value of underlying
collateral, loan commitments outstanding, delinquencies, and other factors.
Since the Company has had extremely low loan losses during its history,
management also considers loss experience of similar portfolios in comparable
lending markets. Accordingly, the calculation of the adequacy of the allowance
for loan losses was not based directly on the level of non- performing assets.
Management will continue to monitor the allowance for loan losses through the
provision for loan losses as economic conditions dictate. Although the Company
maintains its allowance for loan losses at a level which it considers to be
adequate to provide for losses, there can be no assurance that future losses
will not exceed estimated amounts or that additional provisions for loan losses
will not be required in future periods. In addition, management's determination
as to the amount of the allowance for loan losses is subject to review by the
OTS and the Federal Deposit Insurance Corporation as part of their examination
process, which may result in the establishment of an additional allowance based
upon their judgement of the information available to them at the time of their
examination.
LIQUIDITY AND CAPITAL RESOURCES
Historically, the Bank has maintained its liquid assets above the minimum
requirements imposed by federal regulations and at a level believed adequate to
meet requirements of normal daily activities, repayment of maturing debt and
potential deposit outflows. Cash flow projections are regularly reviewed and
updated to assure that adequate liquidity is provided. As of September 30, 1997,
the Bank's liquidity ratio (liquid assets as a percentage of net withdrawable
savings and current borrowings) was 8.03%, which exceeds the regulatory
requirement.
The Bank is subject to certain capital to asset requirements in accordance with
Bank regulations. See Note 3 of the Notes to Consolidated Financial Statements
contained in this report.
6
<PAGE>
RESULTS OF OPERATIONS
Three Months Ended September 30, 1997 and 1996.
- -----------------------------------------------
General. Net income for the three months ended September 30, 1997 was $329,204
compared to $94,499 for the three months ended September 30, 1996. The increase
was due primarily to a one-time special assessment of $416,000, net of taxes, to
recapitalize the Savings Association Insurance Fund (the "SAIF") in September,
1996, offset in part by an increase in provision for loan losses. Net Income,
without the SAIF assessment, for the three months ended September 30, 1996, was
$510,499. On a SAIF adjusted basis, income before taxes increased to $523,861
for the three months ended September 30, 1997 from $94,499 for the three months
ended September 30, 1996.
Interest Income. Total interest income increased to $3.5 million for the three
months ended September 30, 1997, from $3.2 million for the three months ended
September 30, 1996, due to an increase in the balances of loans and investments
for the three months ended September 30, 1997 as compared to the period ended
September 30, 1996. The average yield earned on interest-earning assets was
8.22% for the three months ended September 30, 1997 compared to 8.25% for the
three months ended September 30, 1996.
Interest Expense. Total interest expense increased to $1.9 million for the three
months ended September 30, 1997, from $1.6 million for the three months ended
September 30, 1996. Interest on deposits increased to $1.5 million for the three
months ended September 30, 1997 from $1.3 million for the three months ended
September 30, 1996 due primarily to an increase in the average outstanding
balance of deposits, which was primarily certificates of deposit, for the three
months ended September 30, 1997. Interest expense on borrowed money increased to
$407,000 for the quarter ended September 30, 1997, from $349,000 for the quarter
ended September 30, 1996, due to an increase in average borrowings. The average
rate paid on interest-bearing liabilities was 4.82% for the three months ended
September 30, 1997 compared to 4.79% to the three months ended September 30,
1996.
Provision for Loan Losses. The provision for loan losses increased to $367,630
for the three months ended September 30, 1997, from $69,647 for the three months
ended September 30, 1996. The increase in provision for loan losses is
attributable primarily to the growth in the loan portfolio and charge-offs and
reserves on one-to-four family loans and foreclosed property. "See Financial
Condition."
Noninterest Income. Noninterest income increased to $174,000 for the three
months ended September 30, 1997, from $130,000 for the three months ended
September 30, 1996 due primarily to both an increase in checking account charges
which is related to an increase in account volume and an increase in the sale of
fixed rate mortgage loans.
Noninterest Expenses. Noninterest expense decreased to $919,000 for the three
months ended September 30, 1997, from $1,463,000 for the three months ended
September 30, 1996. The decrease in noninterest expense is primarily
attributable to the one-time SAIF assessment discussed above, offset in part, by
an increase in compensation and other expenses related to the opening of a
branch location on April 9, 1997 in Virginia Beach, Virginia.
7
<PAGE>
Taxes. Taxes increased to $195,000 for the three months ended September 30,
1997, from $54,000 for the three months ended September 30, 1996, due to the
increase in income before taxes.
Six Months Ended September 30, 1997 and 1996
- --------------------------------------------
General. Net income for the six months ended September 30, 1997 was $824,377
compared to $644,286 for the six months ended September 30, l996 for the same
reasons discussed above, on a SAIF adjusted basis, net income for the six months
ended September 30, 1996 was $1,060,286.
Interest Income. Total interest income increased to $6.9 million for the six
months ended September 30, 1997, from $6.3 million for the six months ended
September 30, 1996, due primarily to an increase in the balances of loans and
investments.
Interest Expense. Total interest expense increased to $3.6 million for the six
months ended September 30, 1997, from $3.3 million for the six months ended
September 30, 1996. Interest on deposits, primarily certificates of deposit,
increased to $2.8 million for the six months ended September 30, 1997, from $2.5
million for the same period last year due primarily to an increase in the
average outstanding deposit balances. Interest expense on borrowed money
increased to $824,994 for the six months ended September 30, 1997 from $738,314
for the six months ended September 30, 1996, due primarily to increased
borrowings from the Federal Home Loan Bank of Atlanta.
Provision for Loan Losses. The provision for loan losses increased to $392,630
for the six months ended September 30, 1997, from $102,638 for the same period
last year due primarily to an increase in the loan portfolio and in chargeoffs
on one-to-four family loans. See "Results of Operations - Three Months Ended
September 30, 1997 and 1996 - Provision for Loan Losses."
Noninterest Income. Noninterest income increased to $342,994 for the six months
ended September 30, 1997, from $247,303 for the six months ended September 30,
1996, due to an increase in the fees and service charges on checking accounts as
the volume of accounts increased and an increase in fixed rate mortgage loans
sold.
Noninterest Expenses. Noninterest expenses decreased to $1.9 million for the six
months ended September 30, 1997, from $2.2 million for the same period last
year. The decrease is related primarily to the one-time SAIF premium discussed
above, offset, in part, by an increase in compensation and other expenses
related to the opening of a branch location on April 9, 1997 in Virginia Beach,
Virginia.
Taxes. Taxes increased to $491,298 for the six months ended September 30, 1997,
from $383,482 for the six months ended September 30, 1996, due to an increase in
income before taxes for the six months ended September 30, 1997.
Forward-Looking Statements
- --------------------------
This Quarterly Report on Form 10-QSB contains certain forward-looking statements
with respect to the financial condition, results of operations and business of
the Company. These forward-looking statements involve certain risks and
uncertainties. When used in this Quarterly Report on Form 10-QSB or
8
<PAGE>
future filings by the Company with the Securities and Exchange Commission, in
the Company's press releases or other public or shareholder communications, or
in oral statements made with the approval of an authorized executive officer,
the words or phrases "will likely result", "are expected to", "will continue",
"is anticipated", "estimate", "project", "believe" or similar expressions are
intended to identify "forward-looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995. The Company wishes to caution
readers not to place undue reliance on any such forward-looking statements,
which speak only as of the date made, and to advise readers that various factors
including regional and national economic conditions, changes in levels of market
interest rates, credit risks of lending activities, and competitive and
regulatory factors could affect the Company's financial performance and could
cause the Company's actual results for future periods to differ materially from
those anticipated or projected.
The Company does not undertake and specifically disclaims any obligation to
publicly release the result of any revisions which may be made to any
forward-looking statements to reflect the occurrence of anticipated or
unanticipated events or circumstances after the date of such statements.
9
<PAGE>
PART II. OTHER INFORMATION
Item 1. Legal Proceedings
Not Applicable.
Item 2. Changes in Securities
Not Applicable.
Item 3. Defaults Upon Senior Securities
Not Applicable.
Item 4. Submission of Matters to a Vote of Security Holders
Not Applicable.
Item 5. Other Information
Not Applicable.
Item 6. Exhibits and Reports on Form 8-K
(a) See Exhibit Index
(b) No Reports on Form 8-k were filed during the quarter ended
September 30, 1997.
10
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
COMMUNITY FINANCIAL CORPORATION
Date: November 10, 1997
-----------------
By: /s/ R. Jerry Giles
---------------------------
R. Jerry Giles
Chief Financial Officer
(Duly Authorized Officer)
11
<PAGE>
COMMUNITY FINANCIAL CORPORATION
EXHIBIT INDEX
Exhibit No. Description
- ----------- -----------
27 Financial Data Schedule (Edgar Only).
12
<TABLE> <S> <C>
<ARTICLE> 9
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE QUARTERLY
REPORT ON FORM 10-QSB FOR THE QUARTER ENDED SEPTEMBER 30, 1997 AND IS QUALIFIED
IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> MAR-31-1997
<PERIOD-END> SEP-30-1997
<CASH> 6,104,678
<INT-BEARING-DEPOSITS> 1,556,000
<FED-FUNDS-SOLD> 0
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 2,901,780
<INVESTMENTS-CARRYING> 6,607,199
<INVESTMENTS-MARKET> 0
<LOANS> 160,837,701
<ALLOWANCE> 0
<TOTAL-ASSETS> 183,278,474
<DEPOSITS> 128,238,136
<SHORT-TERM> 29,000,000
<LIABILITIES-OTHER> 1,827,257
<LONG-TERM> 0
0
0
<COMMON> 12,754
<OTHER-SE> 24,200,327
<TOTAL-LIABILITIES-AND-EQUITY> 183,278,474
<INTEREST-LOAN> 3,341,335
<INTEREST-INVEST> 138,383
<INTEREST-OTHER> 30,650
<INTEREST-TOTAL> 3,510,368
<INTEREST-DEPOSIT> 1,467,783
<INTEREST-EXPENSE> 1,874,417
<INTEREST-INCOME-NET> 1,635,951
<LOAN-LOSSES> 367,630
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 918,743
<INCOME-PRETAX> 523,861
<INCOME-PRE-EXTRAORDINARY> 523,861
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 329,204
<EPS-PRIMARY> .26
<EPS-DILUTED> .26
<YIELD-ACTUAL> 0
<LOANS-NON> 1,022,000
<LOANS-PAST> 0
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 0
<CHARGE-OFFS> 0
<RECOVERIES> 0
<ALLOWANCE-CLOSE> 0
<ALLOWANCE-DOMESTIC> 0
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
