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 JUNE 30, 1999
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 0-18261
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 $.01 per share, outstanding at the
close of business on August 2, 1999: 2,572,146.
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 June 30, 1999 (unaudited)
and March 31, 1999.............................................1
Consolidated Statements of Income for the
Three Months Ended June 30, 1999 and 1998 (unaudited)..........2
Consolidated Statements of Cash Flows for the
Three Months Ended June 30, 1999 and
1998 (unaudited)...............................................3
Notes to Unaudited Interim Consolidated
Financial Statements...........................................4
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations............................5
PART II. OTHER INFORMATION..............................................8
<PAGE>
COMMUNITY FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
<TABLE>
<CAPTION>
June 30, March 31,
1999 1999
------------ -------------
(Unaudited)
<S> <C> <C>
ASSETS
Cash (including interest bearing
deposits of approximately
$1,214,000 and $6,407,000) $ 7,019,843 $ 10,131,157
Securities
Held to maturity 11,076,515 5,561,314
Available for sale 3,056,328 3,543,092
Investment in Federal Home Loan
Bank stock, at cost 1,350,000 1,508,200
Loans receivable, net 173,049,042 171,413,721
Real estate owned 237,907 351,733
Property and equipment, net 6,359,567 6,050,785
Accrued interest receivable
Loans 1,058,639 1,056,833
Investments 171,580 107,912
Prepaid expenses and other assets 1,297,476 1,085,272
Total Assets $204,676,897 $200,810,019
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Deposits $149,033,019 $153,015,076
Advances from Federal Home Loan
Bank 27,000,000 19,000,000
Advance payments by borrowers for
taxes and insurance 101,738 190,421
Other liabilities 2,065,107 2,220,794
------------ ------------
Total Liabilities 178,199,864 174,426,291
------------ ------------
Stockholders' Equity
Preferred stock $.01 par value,
authorized 3,000,000 shares,
none outstanding
Common stock, $.01 par value,
authorized 10,000,000 shares,
2,572,146 shares outstanding 25,721 25,721
Additional paid in capital 4,897,207 4,897,207
Retained earnings 19,700,914 19,395,509
Net unrealized gain on securities
available for sale 1,853,191 2,065,291
Total Stockholders' Equity 26,477,033 26,383,728
------------ ------------
Total Liabilities and
Shareholders' Equity $204,676,897 $200,810,019
============ ============
</TABLE>
See accompanying notes to consolidated financial statements.
<PAGE>
COMMUNITY FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
<TABLE>
<CAPTION>
Three Months Ended
June 30,
------------------------------------
1999 1998
------------ ------------
(Unaudited)
<S> <C> <C>
INTEREST INCOME
Loans $3,464,189 $3,434,030
Investment securities 126,587 66,967
Other 40,567 50,360
---------- ----------
Total interest income 3,631,343 3,551,357
---------- ----------
INTEREST EXPENSE
Deposits 1,573,295 1,538,624
Borrowed money 286,443 276,405
Total interest expense 1,859,738 1,815,029
---------- ----------
NET INTEREST INCOME 1,771,605 1,736,328
PROVISION FOR LOAN LOSSES 69,000 75,000
---------- ----------
NET INTEREST INCOME AFTER
PROVISION FOR LOAN LOSSES 1,702,605 1,661,328
---------- ----------
NONINTEREST INCOME
Service charges, fees
and commissions 537,961 295,264
Gain on sale of securities 550,206 99,174
Miscellaneous 10 810
---------- ----------
Total noninterest
income 1,088,177 395,248
---------- ----------
NONINTEREST EXPENSE
Compensation & benefits 1,085,472 616,784
Occupancy 268,334 149,970
Data processing 112,314 113,469
Federal insurance premium 21,299 20,359
Miscellaneous 436,691 276,226
---------- ----------
Total noninterest
expense 1,924,110 1,173,808
---------- ----------
INCOME BEFORE TAXES 866,672 882,768
INCOME TAXES 355,496 376,408
---------- ----------
NET INCOME $ 511,176 $ 506,360
========== ==========
BASIC EARNINGS PER SHARE $ 0.20 $ 0.20
DILUTED EARNINGS PER SHARE 0.20 $ 0.19
DIVIDENDS PER SHARE $ 0.08 $ 0.07
</TABLE>
See accompanying notes to consolidated financial statements.
<PAGE>
COMMUNITY FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
Three Months Ended
June 30,
---------------------------
1999 1998
----------- -----------
(Unaudited)
<S> <C> <C>
OPERATING ACTIVITIES
Net income $511,176 $506,360
Adjustments to reconcile net income to
net cash provided by operating activities
Provision for loan losses 69,000 75,000
Depreciation 135,218 68,576
Amortization of premium and accretion
of discount on securities, net (126) (580)
(Decrease)increase in net deferred
loan fees 8,416 (17,475)
Increase in deferred income taxes 27,911 5,718
Decrease (increase) in other assets (277,678) (99,305)
Increase (decrease) in other liabilities 81,269 44,544
(Gain)loss on sale of loans (233,563) (11,164)
Proceeds from sale of loans 15,645,582 7,148,350
Loans originated for resale (16,154,104) (7,187,850)
Gain on sale of available for sale
securities (550,206) (99,174)
------------ -----------
Net cash provided(absorbed) by operating
activities (737,105) 433,000
------------ ----------
INVESTING ACTIVITIES
Proceeds from maturities of held to
maturity securities 250,000 250,000
Proceeds from sale of available for
sale securities 560,003 101,187
Purchases of investment securities (5,750,000) ---
Net decrease (increase) in loans (1,074,409) 73,063
Purchases of property and equipment (444,000) (296,289)
Redemption (purchase) of FHLB stock 158,200 ---
(Increase) decrease in Real Estate Owned 113,826 (123,852)
---------- ---------
Net cash provided (absorbed) by
investing activities (6,186,380) 4,109
----------- --------
FINANCING ACTIVITIES
Dividends paid (205,772) (179,231)
Net (decrease) in deposits (3,982,057) (1,005,513)
Proceeds from advances and other
borrowed money 25,000,000 4,000,000
Repayments of advances and other
borrowed money (17,000,000) (4,000,000)
Proceeds from issuance of common stock --- 91,500
Net cash provided (absorbed) by
financing activities 3,812,171 (1,093,244)
---------- -----------
INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS (3,111,314) (656,135)
CASH AND CASH EQUIVALENTS-beginning of period 10,131,157 7,266,145
CASH AND CASH EQUIVALENTS-end of period $7,019,843 $6,610,010
</TABLE>
See accompanying notes to consolidated financial statements.
<PAGE>
COMMUNITY FINANCIAL CORPORATION
NOTES TO UNAUDITED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
JUNE 30, 1999
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 ("Community" or the "Company"), its wholly-owned
subsidiary, Community Bank (the "Bank") and Community First Mortgage
Corporation, a wholly-owned subsidiary of the Bank ("First Mortgage"). 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 months ended June 30, 1999, are not
necessarily indicative of the results that may be expected for the year ending
March 31, 2000.
NOTE 2. - EARNINGS PER SHARE
Basic earnings per share is based on net income divided by the weighted
average number of common shares outstanding during the period. Diluted earnings
per share shows the dilutive effect of additional common shares issuable under
stock option plans. Basic earnings per share for the three months ended June 30,
1999 and 1998 have been determined by dividing net income by the weighted
average number of shares of common stock outstanding during these periods
(2,572,146 and 2,564,495, respectively). The number of shares used to determine
diluted earnings per share for the same three-month periods was 2,572,146 and
2,610,156, respectively.
<PAGE>
NOTE 3. - STOCKHOLDERS' EQUITY
The following table presents the Bank's capital levels at June 30, 1999
relative to the requirements applicable under the Financial Institutions Reform,
Recovery and Enforcement Act of 1989 ('FIRREA'):
<TABLE>
Amount Percent Actual Actual Excess
Required Required Amount Percent Amount
---------- --------- --------- ------- -----------
<S> <C> <C> <C> <C> <C>
Tangible Capital $ 3,066,000 1.50% $24,026,000 11.75% $20,960,000
Core Capital 8,177,000 4.00 24,026,000 11.75 15,849,000
Risk-based Capital 12,768,000 8.00 25,267,000 15.83 12,499,000
</TABLE>
<PAGE>
Capital distributions by the Bank are limited by federal regulations.
Capital distributions are defined to include, in part, dividends, stock
repurchases and cash-out mergers. The federal regulation permits a "Tier 1"
institution 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 the OTS to object to the distribution. A Tier 1
institution is defined as an institution 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 Federal regulations require that
institutions 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 June 30, 1999 and 1998 was
$1,865,810 and $1,822,582, respectively. Income taxes paid for the three months
ended June 30, 1999 and 1998 were $425,971 and none, respectively.
NOTE 5. - COMPREHENSIVE INCOME
FASB Statement No. 130, " Reporting Comprehensive Income", effective for
fiscal years beginning on or after January 1, 1998, establishes standards for
reporting and displaying comprehensive income and its components. Comprehensive
income is defined as "the change in equity (net assets) of a business enterprise
during a period from transactions and other events and circumstances from
non-owner sources. It includes all changes in equity during a period except
those resulting from investments by owners and distributions to owners."
Comprehensive income for the Bank includes net income and unrealized gains and
losses on securities available for sale. The following tables set forth the
components of comprehensive income for the three-months ended June 30, 1999 and
1998:
<PAGE>
Three Months Ended June 30
--------------------------------
1999 1998
--------- ---------
(Amounts in thousands)
Net income $ 511,176 $ 506,360
Other comprehensive income,
net of tax
Unrealized gains on securities:
Unrealized holding gains(losses)
arising during the period 13,932 (17,512)
Less: Reclassification
adjustment for gains(losses)
included in net income (341,128) (57,521)
--------- ---------
$ 183,980 $ 431,327
========= =========
<PAGE>
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS.
FINANCIAL CONDITION
The Company's total assets increased $3.9 million to $204.7 million at June
30, 1999, due primarily to an increase in securities held to maturity of $5.5
million which was funded with cash and cash equivalents and additional advances
from the FHLB of Atlanta. Deposits decreased $4.0 million to $149.0 million at
June 30, 1999, from $153.0 million at March 31, 1999. The decrease in deposits
was due primarily to increased rate competition on certificates of deposit by
other financial institutions. Stockholders' equity increased to $26.5 million at
June 30, 1999, from $26.4 million at March 31, 1999, due primarily to earnings
for the three month period ended June 30, 1999, which was partially offset by a
payment of $0.08 per share in cash dividends and a decrease in the net
unrealized gain on securities available for sale.
At June 30, 1999, non-performing assets totaled approximately $2.0 million
or 1.00% of assets compared to $1.5 million or .76% of assets at March 31, 1999.
At June 30, 1999 our non-performing assets were comprised of seven single family
rental properties, eight single family residential properties, one multi-unit
apartment building and one construction loan. Real estate acquired through
foreclosure included in nonperforming assets totaled $213,000 and was comprised
of three single-family residential properties. In addition to the nonperforming
loans, at June 30, 1999, we had other loans of concern that totaled
approximately $5.3 million. Included in these loans was one real estate loan
with a balance of $1.3 million, secured primarily by commercial and rental
property and a second commercial real estate loan with a balance of $900,000,
both of which were current at June 30, 1999, but are being monitored due to
prior delinquencies. The remaining loans of concern were two commercial loans
and various residential real estate loans. At June 30, 1999, our allowance for
loan losses to non-performing assets was 63% and to total assets was .63%.
We maintain an allowance for loan losses to provide for estimated potential
losses in our loan portfolio. Management determines the level of reserves based
on loan performance, the value of the collateral, economic and market
conditions, and previous experience. Management reviews the adequacy of the
allowance at least quarterly, utilizing its internal loan classifications
system. Management believes that the loan loss reserve is adequate at June 30,
1999. Although management believes it uses the best information available,
future adjustments to reserves may be necessary.
<PAGE>
LIQUIDITY
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 June 30, 1999, the
Bank's liquidity ratio (liquid assets as a percentage of net withdrawable
savings and current borrowings) was 13.13%, which exceeds the regulatory
requirement.
RESULTS OF OPERATIONS
Three Months Ended June 30, 1999 and 1998.
- ----------------------------------------------
General. Net income for the three months ended June 30, 1999 was $511,000
compared to $506,000 for the three months ended June 30, 1998. Net interest
income increased slightly while non-interest income increased $693,000 during
the three months ended June 30, 1999 compared to the same period in 1998 and
non-interest expense increased $750,000 during the same period. Income before
taxes decreased to $867,000 for the three months ended June 30, 1999 from
$883,000 for the three months ended June 30, 1998.
Interest Income. Total interest income increased to $3.6 million for the
three months ended June 30, 1999, from $3.5 million for the three months ended
June 30, 1998, due to an increase in the average balance of investmentsecurities
for the three months ended June 30, 1999 as compared to the period ended June
30,1998. The average yield earned on interest-earning assets was 7.83% for the
three months ended June 30, 1999 compared to 8.22% for the three months ended
June 30, 1998.
Interest Expense. Total interest expense increased to $1.9 million for the
quarter ended June 30, 1999, from $1.8 million for the quarter ended June 30,
1998. Interest on deposits increased to $1.6 million for the quarter ended June
30, 1999 from $1.5 million for the quarter ended June 30, 1998 due primarily to
an increase in average outstanding deposit balances. Interest expense on
borrowed money increased to $286,000 for the quarter ended June 30, 1999, from
$276,000 for the quarter ended June 30, 1998, due to an increase in average
outstanding borrowings. The average rate paid on interest-bearing liabilities
was 4.37% during the three months ended June 30, 1999 compared to 4.69% for the
three months ended June 30, 1998.
<PAGE>
Provision for Loan Losses. The provision for loan losses decreased to
$69,000 for the three months ended June 30, 1999, from $75,000 for the three
months ended June 30, 1998 due to slower loan growth related to mortgage loan
refinancings and management's assessment of the inherent risk in the loan
portfolio .
Noninterest Income. Noninterest income increased to $1.1 million for the
three months ended June 30, 1999, from $395,000 for the three months ended June
30, 1998 due primarily to gains realized on the sale of securities and an
increase in fees and gains on the sale of mortgage loans in the secondary market
by our subsidiary, Community First Mortgage Corporation. Noninterest Expenses.
Noninterest expense increased to $1.9 million for the three months ended June
30, 1999, from $1.2 million for the three months ended June 30, 1998. The
increase in noninterest expense is primarily attributable to an increase in
compensation related to an increase in the number of employees.
Taxes. Taxes decreased to $355,000 for the three months ended June 30,
1998, from $376,000 for the three months ended June 30, 1998.
YEAR 2000 ISSUES
The approaching millennium is causing organizations of all types to review
their computer systems for the ability to properly accommodate the year 2000.
When computer systems were first developed, two digits were used to designate
the year in date calculations and "19" was assumed for the century. As a result,
there is significant concern about the integrity of date sensitive calculations
when the calendar rolls over to January 1, 2000. An older system could interpret
01/01/00 as January 1, 1900 potentially causing major problems calculating
information related to interest, principal payments, delinquencies or maturity
dates and/or amounts. An internal committee comprised of senior officers and
management has been formed to address the potential risk that the year 2000
poses for Community Bank. This committee reports to the full board of directors
quarterly or more often as warranted.
<PAGE>
Financial institution regulators recently have increased their focus upon
year 2000 compliance issues and have issued guidance concerning the
responsibilities of senior management and directors. The Federal Financial
Institutions Examination Council has issued several interagency statements on
Year 2000 Project Management Awareness. These statements require financial
institutions to, among other things, examine the year 2000 issue with respect to
their customers, suppliers and borrowers. These statements also require each
federally insured financial institution to survey its exposure, measure its risk
and prepare a plan to address the year 2000 issue. In addition, the federal
banking regulators have issued safety and soundness guidelines to be followed by
insured depository institutions to assure resolution of any year 2000 problems.
Accurate data processing is essential to our operations and a lack of
accurate processing by our vendors or us could have a significant adverse impact
on our financial condition and results of operations. We believe that our
in-house data processing operations will function properly on and after January
1, 2000. A contingency plan, however, has been developed by Community Bank in
the unlikely event that our data processing operations do not function properly
on or after January 1, 2000. This plan focuses on conducting operations in a
manual mode, including the recording of transactions on spreadsheets.
We have also received year 2000 updates from most of our material,
non-information system providers, including but not limited to security cameras,
credit card and ATM card processors, the vault alarm, check printers, telephone
systems, participation loan servicers, and institutions we invest through or
with. Based on these updates, we do not anticipate any significant year 2000
issues. Our future expense to be year 2000 compliant is immaterial.
In addition to expenses related to our own systems, we could incur losses
if loan payments are delayed due to year 2000 problems affecting any of our
significant borrowers or impairing the payroll systems of large employees in our
market area. We have been communicating with our vendors to assess their
progress in evaluating their systems and implementing any corrective measures
required by them to be prepared for the year 2000. We have been advised by such
parties that they have plans in place to address and correct the issues
associated with the year 2000 problem; however, no assurance can be given as to
the adequacy of these plans or to the timeliness of their implementation. We do
consider the year 2000 issue as part of our underwriting criteria.
<PAGE>
Forward-Looking Statements
This Quarterly Report on Form 10-QSB contains certain forward-looking
statements with respect to our financial condition, results of operations and
business. These forward-looking statements involve certain risks and
uncertainties. When used in this Quarterly Report on Form 10-QSB or future
filings by us with the Securities and Exchange Commission, in our 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. We wish 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 our
financial performance and could cause our actual results for future periods to
differ materially from those anticipated or projected.
We do not undertake and specifically disclaim 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.
<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. Exhibits
See Exhibit Index.
b. Reports on Form 8k
None to be reported.
<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: August 7, 1999
By: /s/ R. Jerry Giles
-------------------------------
R. Jerry Giles
Chief Financial Officer
(Duly Authorized Officer
<PAGE>
EXHIBIT INDEX
Exhibit No. Description
11 Computation of Per Share Data
27 Financial Data Schedule.
<TABLE>
COMMUNITY FINANCIAL CORPORATION
For the Three Months Ended
June 30, 1999 June 30, 1998
Weighted Weighted
Average Per-Share Average Per Share
Income Shares Amount Income Shares Amount
------- ------------ --------- ------ ----------- ---------
<S> <C> <C> <C> <C> <C> <C>
Basic EPS
Income available to
common stockholders $511,176 2,572,146 $0.20 $506,360 2,564,495 $0.20
Effect of Dilutive
Securities
Options -- -- -- 45,236
Diluted EPS
Income available to
common stockholders $511,176 2,572,146 $0.20 $506,360 2,609,731 $0.19
</TABLE>
<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 June 30, 1999 AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> MAR-31-2000
<PERIOD-END> JUN-30-1999
<CASH> 7,019,843
<INT-BEARING-DEPOSITS> 1,214,000
<FED-FUNDS-SOLD> 0
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 3,056,328
<INVESTMENTS-CARRYING> 11,076,515
<INVESTMENTS-MARKET> 0
<LOANS> 173,049,042
<ALLOWANCE> 0
<TOTAL-ASSETS> 204,676,897
<DEPOSITS> 149,033,019
<SHORT-TERM> 12,000,000
<LIABILITIES-OTHER> 2,166,845
<LONG-TERM> 15,000,000
0
0
<COMMON> 25,721
<OTHER-SE> 26,451,312
<TOTAL-LIABILITIES-AND-EQUITY> 204,676,897
<INTEREST-LOAN> 3,464,189
<INTEREST-INVEST> 126,587
<INTEREST-OTHER> 40,567
<INTEREST-TOTAL> 3,631,343
<INTEREST-DEPOSIT> 1,573,295
<INTEREST-EXPENSE> 1,859,738
<INTEREST-INCOME-NET> 1,771,605
<LOAN-LOSSES> 69,000
<SECURITIES-GAINS> 550,206
<EXPENSE-OTHER> 1,924,110
<INCOME-PRETAX> 866,672
<INCOME-PRE-EXTRAORDINARY> 866,672
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 511,176
<EPS-BASIC> .20
<EPS-DILUTED> .20
<YIELD-ACTUAL> 0
<LOANS-NON> 2,038,000
<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>
