FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
QUARTERLY REPORT UNDER SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarter ended June 30, 1996
Commission file number: 33-85626
FULTON BANCSHARES CORPORATION
(Exact name of registrant as specified in its charter)
Commonwealth of Pennsylvania 25-1598464
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
100 Lincoln Way East
McConnellsburg, Pennsylvania 17233
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including
area code: (717) 485-3144
Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the Securities
Exchange Act of 1934 during the preceding 12 months (or for shorter
period that the registrant was required to file such reports), and (2)
has been subject to such filing requirements for the past 90 days.
Yes X No
Indicate the number of shares outstanding of each of the issuer's
classes of common stock, as of the latest practicable date.
Class Outstanding at July 26, 1996
(Common stock, .625 par value) 495,000
Page 1 of 15 pages
FULTON BANCSHARES CORPORATION
INDEX
Page
PART I - FINANCIAL INFORMATION
Condensed consolidated balance sheets - June 30, 1996
and December 31, 1995 3
Condensed consolidated statements of income - three months
ended June 30, 1996 and 1995 4
Condensed consolidated statements of income - six months
ended June 30, 1996 and 1995 5
Condensed consolidated statements of cash flows - six
months ended June 30, 1996 and 1995 6
Notes to condensed consolidated financial statements 7
and 8
Management's discussion and analysis of financial
condition and results of operations 9 -
13
PART II - OTHER INFORMATION 14
Signatures 15
Page 2 of 15 pages
PART I - FINANCIAL INFORMATION
FULTON BANCSHARES CORPORATION AND ITS WHOLLY-OWNED SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
June 30, December 31,
1996 1995 *
ASSETS (Unaudited)
(000 Omitted)
Cash and due from banks $ 3,024 $
2,856
Held-to-maturity debt securities 0 600
Available-for-sale debt securities 28,915
28,864
Federal Reserve, Atlantic Central Bankers Bank,
Federal Home Loan Bank and FNMA Preferred
Stocks, at cost which approximates market 722 501
Loans, net of allowance for loan losses 62,676
59,871
Bank building, equipment, furniture &
fixtures, net 2,056 2,059
Other real estate owned 426 424
Accrued interest receivable 641 606
Other assets 2,620
668
Total assets $ 101,080 $
96,449
LIABILITIES
Deposits:
Noninterest-bearing deposits $ 8,777 $
7,959
Interest-bearing deposits:
Savings deposits 29,986
29,285
Time deposits 49,635
49,115
Total deposits 88,398
86,359
Other borrowed money 2,700 0
Accrued interest payable 358 369
Other liabilities 115
276
Total liabilities 91,571
87,004
STOCKHOLDERS' EQUITY
Capital stock, common, par value - $ 0.625;
4,000,000 shares authorized; 495,000
shares issued and outstanding, at June 30,
1996 and December 31, 1995, respectively 309 309
Surplus 2,051 2,051
Retained earnings 7,562 7,102
Net unrealized gains/(losses) available-
for-sale securities ( 413) (
17)
Total stockholders' equity 9,509
9,445
Total liabilities and
stockholders' equity $ 101,080 $
96,449
* Condensed from audited financial statements
The accompanying notes are an integral part of these condensed
financial statements.
Page 3 of 15 pages
FULTON BANCSHARES CORPORATION AND ITS WHOLLY-OWNED SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
THREE MONTHS ENDED JUNE 30, 1996 AND 1995
(UNAUDITED)
1996 1995
(000 Omitted)
Interest & Dividend Income
Interest & fees on loans $ 1,407 $
1,466
Interest & dividends on investment
securities:
U.S. Government securities 415 330
Obligations of state & political
subdivisions 33 20
Interest on federal funds sold 13 6
Other interest & dividend income 0
8
Total interest & dividend income 1,868
1,830
Interest Expense
Interest on deposits 915 919
Interest on federal funds purchased 13 3
Interest on other borrowed money 1
9
Total interest expense 929
931
Net interest income before
provision for loan losses 939 899
Provision for loan losses 0
20
Net interest income after provision
for loan losses 939
879
Other Income
Service charges on deposit accounts 30 25
Other fee income 24 26
Other noninterest income 34 29
Securities gains (losses) ( 2)
1
Total other income 86
81
Other Expense
Salaries and employee benefits 294 283
Fixed asset expenses (including
depreciation) 100 107
FDIC insurance premiums 0 47
Other noninterest expenses 221
201
Total other expenses 615
638
Net income before income taxes 410 322
Applicable income taxes 103
88
Net income $ 307 $
234
Weighted average number of shares
outstanding 495,000
484,820
Net income per share $ .62 $
.48
Cash dividends declared per share .15 .25
The accompanying notes are an integral part of these condensed
financial statements.
Page 4 of 15 pages
FULTON BANCSHARES CORPORATION AND ITS WHOLLY-OWNED SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
SIX MONTHS ENDED JUNE 30, 1996 AND 1995
(UNAUDITED)
1996 1995
(000 Omitted)
Interest & Dividend Income
Interest & fees on loans $ 2,795 $
2,820
Interest & dividends on investment
securities:
U.S. Government securities 818 692
Obligations of state & political
subdivisions 55 39
Interest on federal funds sold 21 7
Other interest & dividend income 20
14
Total interest & dividend income 3,709
3,572
Interest Expense
Interest on deposits 1,858 1,789
Interest on federal funds purchased 13 20
Interest on other borrowed money 1
11
Total interest expense 1,872
1,820
Net interest income before
provision for loan losses 1,837 1,752
Provision for loan losses 0
30
Net interest income after provision
for loan losses 1,837
1,722
Other Income
Service charges on deposit accounts 59 50
Other fee income 55 53
Other noninterest income 51 43
Securities gains (losses) 0
1
Total other income 165
147
Other Expense
Salaries and employee benefits 560 533
Fixed asset expenses (including
depreciation) 202 198
FDIC insurance premiums 1 95
Other noninterest expenses 415
386
Total other expenses 1,178
1,212
Net income before income taxes 824 657
Applicable income taxes 217
186
Net income $ 607 $
471
Weighted average number of shares
outstanding 495,000
461,746
Net income per share $ 1.23 $
1.02
Cash dividends declared per share .30 .25
The accompanying notes are an integral part of these condensed
financial statements.
Page 5 of 15 pages
FULTON BANCSHARES, CORPORATION AND ITS WHOLLY-OWNED SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
Six Months Ended June 30, 1996 and 1995
(UNAUDITED)
1996 1995
(000 Omitted)
Cash flows from operating activities:
Net income $ 607 $
471
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization 73 85
Provision for loan losses 0 30
Other - Net ( 315) (
110)
Net cash provided by operating activities 365
476
Cash flows from investing activities:
Sale of OREO property 0 201
Purchase of investment securities
- Available-for-sale ( 7,737) (
6,203)
- Held-to-maturity 0 (
1,245)
(Purchase) redemption of Federal Home
Loan Bank stock ( 72) (
64)
(Purchase) FNMA Preferred Stock ( 150) 0
Sales of available-for-sale securities 5,259 3,601
Maturities of available-for-sale securities 1,827 641
Net (increase) decrease in loans ( 2,805) (
1,051)
Purchases of bank premises and equipment -
Net ( 70) (
58)
Purchases of officers/directors life
insurance policies ( 1,641) 0
Improvements of OREO property ( 2)
0
Net cash provided (used) by investing
activities ( 5,391) (
4,178)
Cash flows from financing activities:
Net increase in deposits 2,042
163
Cash dividends paid ( 148) (
124)
Net proceeds - Sale of common stock 0 1,310
Net increase (decrease) in federal funds
purchased 0
( 220)
Net increase (decrease) in other
borrowed money 2,700
2,270
Net cash provided by financing activities 4,594
3,399
Net (decrease) in cash and cash equivalents ( 432) (
303)
Cash and cash equivalents, beginning balance 3,456
2,633
Cash and cash equivalents, ending balance $ 3,024 $
2,330
Supplemental disclosure of cash flows information:
Cash paid during the period for:
Interest $ 1,860 $
1,778
Income taxes 245 227
Supplemental schedule of noncash investing
and financing activities:
Net unrealized (loss) on investments
available for sale (net of deferred taxes) ( 413) (
335)
The accompanying notes are an integral part of these condensed
financial statements.
Page 6 of 15 pages
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
JUNE 30, 1996
(UNAUDITED)
Note 1. Basis of Presentation
The financial information presented at and for the six months
ended June 30, 1996 and 1995 is unaudited. Information
presented at December 31, 1995 is condensed from audited
year-end financial statements. However, unaudited
information reflects all adjustments (consisting solely of
normal recurring adjustments) that are, in the opinion of
management, necessary for a fair presentation of the
financial position, results of operations and cash flows for
the interim period.
Note 2. Principles of Consolidation
The consolidated financial statements include the accounts of
the corporation and its wholly-owned subsidiaries, the Fulton
County National Bank & Trust Company and the Fulton County
Community Development Corporation. All significant
intercompany transactions and accounts have been eliminated.
Note 3. Cash Flows
For purposes of the statements of cash flows, the corporation
has defined cash and cash equivalents as those amounts
included in the balance sheet captions "cash and due from
banks" and "federal funds sold". As permitted by Statement
of Financial Accounting Standards No. 104, the corporation
has elected to present the net increase or decrease in
deposits in banks, loans and time deposits in the statement
of cash flows.
Note 4. Federal Income Taxes
For financial reporting purposes the provision for loan
losses charged to operating expense is based on management's
judgment, whereas for federal income tax purposes, the amount
allowable under present tax law is deducted. Additionally,
certain expenses are charged to operating expense in the
period the liability is incurred for financial reporting
purposes, whereas for federal income tax purposes, these
expenses are deducted when paid. As a result of these timing
differences, deferred income taxes are provided in the
financial statements. Federal income taxes were computed
after reducing pretax accounting income for nontaxable
municipal and loan income.
Page 7 of 15 pages
Note 5. Other Commitments
In the normal course of business, the bank makes various
commitments and incurs certain contingent liabilities which
are not reflected in the accompanying financial statements.
These commitments include various guarantees and commitments
to extend credit and the bank does not anticipate any losses
as a result of these transactions.
Note 6. Earnings Per Share of Common Stock
Earnings per share of common stock were computed based on an
average of 495,000 and 484,820 shares for the quarters ended
June 30, 1996 and 1995, respectively.
Note 7. Investment Securities
The carrying amounts of investment securities and their
approximate fair values at June 30, 1996 were as follows:
Gross Gross
Amortized Unrealized Unrealized Fair
Cost Gains (Losses) Value
Debt securities available for sale:
U.S. Government
treasuries $ 401,246 $ 1,378 $
0 $ 402,624
State & municipal
securities 3,303,604 35,774 ( 32,724)
3,306,654
U.S. Government
agencies 7,508,686 0 ( 172,906)
7,335,780
Mortgage-backed
securities 18,326,949 7,487 (
465,208) 17,869,228
$ 29,540,485 $ 44,639 ($
670,838)$ 28,914,286
There were no securities categorized "Held-to-maturity" or
"Trading" at June 30, 1996.
Note 8. Formation of Fulton County Community Development Corporation
On March 13, 1996, Fulton Bancshares Corporation received
approval to engage de novo in community development
activities. The Fulton County Community Development
Corporation (the "CDC") was incorporated under the laws of
the Pennsylvania Business Corporation Law of 1988 on June 7,
1996. On June 10, 1996, the Fulton County National Bank &
Trust Company authorized, declared and upstreamed a $ 50,000
cash dividend to Fulton Bancshares Corporation, which used
the funding to invest in the CDC. The CDC's first project
will be to support efforts of the local downtown business
revitalization project to lend low interest funds to eligible
small businesses for the purpose of facade improvement.
Future projects will include small business marketing, new
business creation, and small business education. In
addition, the CDC will renovate existing buildings and/or
construct new buildings to house low-to-moderate income
individuals.
Page 8 of 15 pages
FULTON BANCSHARES CORPORATION
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
OVERVIEW
Net after tax income for the first six months of 1996 was
$607,000 compared to $471,000 for the same period in 1995,
representing an increase of $ 136,000 or 28.9%. Net income on an
adjusted per share basis for the first six months of 1996 was $ 1.23,
an increase of $ .21 from the $ 1.02 per share realized during the six
months ended June 30, 1995.
RESULTS OF OPERATIONS
Second Quarter 1996 vs. Second Quarter 1995
Interest income for the second quarter of 1996 was $ 1,868,000
compared to $ 1,830,000 as of June 30, 1995, for an increase of
$ 38,000, or 2.1%. The increase was due primarily to higher interest
earned on debt securities.
Interest expense for the current quarter was $ 929,000, a
decrease of $ 2,000 over the $ 931,000 for the same period of the
prior year. Even though interest-earning deposits, primarily time
deposits, at June 30, 1996 increased $ 2,714,000, or 3.5% from
June 30, 1995, interest expense decreased slightly since average rates
paid on those deposits have decreased significantly over those paid in
the same period in 1995. Management expects average rates for the
remainder of 1996 to be lower than comparable periods of the previous
year.
Net interest margins for the third quarter of 1996 totaled
$ 939,000, up $ 40,000 from the second quarter of 1995.
Six Months 1996 vs. Six Months 1995
Interest income for the first six months of 1996 was
$ 3,709,000 compared to $ 3,572,000 as of June 30, 1995, for an
increase of $ 137,000, or 3.8%. This increase was primarily due to
the repricing of adjustable-rate debt securities at higher market
interest rates. Management expects average rates earned for the rest
of 1996 to be slightly less than comparable periods of the previous
year since interest rates have begun to decline.
Interest expense for the six months ended June 30, 1996 was
$ 1,872,000, an increase of $ 52,000, or 2.9% over the first six
months of 1995. Increases in time deposits of 4.6% resulted in higher
interest expense for the first six months of 1996 compared to the
first six months of 1995. Management expects average rates paid for
the rest of 1996 to be slightly less than comparable periods of the
previous year since interest rates have begun to decline.
Page 9 of 15 pages
Net interest margins for the first six months of 1996 were
$ 1,837,000 compared to $ 1,752,000 as of June 30, 1995, an increase
of 4.9%. Liquidity and interest rate risk are continuously monitored
through asset-liability committee reports. Management plans to
protect its net interest margin by competitively pricing loans and
deposits and by structuring interest-earning assets and liabilities in
such a way that they can be repriced in response to changes in market
interest rates.
OTHER INCOME
Second Quarter 1996 vs. Second Quarter 1995
Noninterest income rose from $ 81,000 in 1995 to $ 86,000 in
1996. Service charges on deposit accounts increased $ 5,000 over the
prior period primarily due to increases in the Bank's fee schedule.
Earnings on cash surrender value of directors/officers life insurance
policies of $ 33,000 were reported during the second quarter of 1996,
while $ 30,000 gains on sales of other real estate owned were reported
in the same period of the prior year.
Six Months 1996 vs. Six Months 1995
Noninterest income for first six months 1996 and the same
period in 1995 was $ 165,000 and $ 147,000, respectively. Service
charges on deposit accounts were up $ 9,000 primarily due to increases
in the Bank's fee schedule. Earnings on cash surrender value of
directors/officers life insurance policies of $ 49,000 were reported
for the first six months of 1996 while $ 42,000 gains on sales of
other real estate owned were reported for the first six months of
1995. Management anticipates further increases in noninterest expense
because of increases in the Bank's fee schedule and additional
earnings on cash surrender value of life insurance policies.
Additional gains on sales of other real estate owned are also expected
to be reported in 1996.
OTHER EXPENSES
Second Quarter 1996 vs. Second Quarter 1995
Noninterest expenses totaled $ 615,000 as of June 30, 1996, a
decrease of $ 23,000 over the $ 638,000 recorded for June 30, 1995.
Employee related expenses were up $ 11,000, or 3.9%, over the second
quarter of 1996 while net occupancy expenses decreased $ 7,000. Other
noninterest expenses were down 11% primarily due to a $ 47,000
decrease in FDIC insurance premiums.
Six Months 1996 vs. Six Months 1995
Noninterest expenses for the first six months of 1996 were
$ 1,178,000, a decrease of $ 34,000, or 2.8%, from $ 1,212,000
reported for the same period in 1995. Salaries and related expenses
were up 5.1% over the first six months of 1995 due to merit pay
increases and additions to staff. Net occupancy expenses increased 2%
over the first six months of 1995. Other noninterest expenses
decreased 13.5% compared to the first six months of 1995 primarily due
to the $ 94,000 decrease in FDIC premiums.
Page 10 of 15 pages
INCOME TAXES
The income tax provision for the second quarter of 1996 was
$ 103,000 compared to $ 88,000 for the second quarter of 1995. The
effective income tax rate for the first six months of 1996 was 26.3%
compared to 28.3% for the six month period ended June 30, 1995.
PROVISION FOR LOAN LOSSES
No addition was made to the provision for loan losses for the
first six months of 1996, compared to a $ 30,000 provision for the
same period of 1995. The provisions were based on management's
evaluation of the reserve for possible loan losses.
A summary of the allowance for loan losses is as follows:
ANALYSIS OF ALLOWANCE FOR LOAN LOSSES
(In 000's)
June 30, 1996 June 30, 1995
Allowance for loan losses
Beginning of period $ 345 $ 358
Loans charged-off during the period:
Real estate loans 0 0
Installment loans 4 11
Commercial and all other loans 0 11
Total charge-offs 4 22
Recoveries of loans previously
charged-off:
Real estate loans 0 0
Installment loans 8 4
Commercial and all other loans 26 1
Total recoveries 34 5
Net loans charged-off 30 17
Provision for loan losses charged to
operations 0 30
Allowance for loan losses - end of
period $ 375
$ 371
The loan loss reserve at June 30, 1996 was $ 375,000 compared
to $ 345,000 at December 31, 1995 and is considered adequate, in
management's judgment, to absorb reasonably estimated loan losses
inherent in the Bank's loan portfolio.
Loans 90 days or more past due (still accruing interest) and
those on nonaccrual status were as follows at June 30:
Page 11 of 15 pages
NONPERFORMING LOANS
(In 000's)
90 Days or More
Past Due Nonaccrual Status
1996 1995 1996 1995
Real estate loans $ 357 $ 76 $ 310 $
324
Installment loans 0 0 0 0
Demand and time loans 82 2 0
19
Total loans $ 439 $ 78 $ 310 $
343
There were no restructured loans for any of the time periods
set forth above.
ASSETS
Total assets at June 30, 1996 were $ 101,080,000, a 4.8%
increase from $ 96,449,000 at December 31, 1995. Net loans at
June 30, 1996 totaled $ 62,676,000, an increase of $ 2,805,000 from
$ 59,871,000 at December 31, 1995. Management intends to contain
growth and concentrate on maintaining adequate profit margins.
LIABILITIES
Total deposits increased 2.4% to $ 88,398,000 at June 30, 1996
compared to $ 86,359,000 at December 31, 1995. Noninterest-bearing
deposits increased 10.3% and interest-bearing deposits increased 1.6%.
CAPITAL
Total equity at June 30, 1996 was $ 9,509,000 representing 9.4%
of total assets. Accumulated earnings for the first six months of
1996 were largely offset by a $ 396,000 increase in net unrealized
holding losses (net of deferred tax) on available for sale securities.
REGULATORY CAPITAL
The company maintains ratios that are well above the minimum
total capital levels required by federal regulatory authorities,
including risk-based capital guidelines. A comparison of Fulton
Bancshares Corporation's capital ratios to regulatory minimum
requirements at June 30, 1996 is as follows:
Fulton Bancshares Regulatory Minimum
Corporation Requirements
Leverage ratio 10.04% 4%
Risk based capital ratios:
Tier I (core capital) 15.65% 4%
Combined tier I and tier
II (core capital plus
allowance for loan losses) 16.24% 8%
Page 12 of 15 pages
BALANCE SHEET ANALYSIS
The following table highlights the changes in the balance
sheet. Since quarter-end balances can be distorted by one-day
fluctuations, an analysis of changes in the quarterly averages is
provided to give a better indication of balance sheet trends.
AVERAGE BALANCE SHEETS
(In 000's)
Second Quarter
1996 1995
ASSETS
Federal funds sold $ 75 $
241
Securities available for sale 28,505
22,720
Securities held to maturity:
Taxable 0 1,245
Exempt from federal income taxes 0
1,159
Total securities held-to-maturity 0 2,404
Other investments 722 435
Loans 61,885
61,463
Total interest-earning assets 91,187
87,263
Cash and due from banks 2,518 2,344
Bank premises and equipment 2,073 2,041
All other assets 3,403 1,273
Allowance for loan losses ( 372) (
358)
Total assets $ 98,809 $
92,563
LIABILITIES
Interest-bearing deposits in domestic
offices $ 79,882 $
76,548
Federal funds purchased 698 669
Other short-term borrowings 213
319
Total interest-bearing liabilities 80,793
77,536
Noninterest-bearing deposits 8,195 7,973
All other liabilities 481
228
Total liabilities 89,469
85,737
STOCKHOLDERS' EQUITY
Common stockholders' equity 9,721 7,552
Net unrealized holding losses, net of tax ( 381) (
726)
Total stockholders' equity 9,340
6,826
Total liabilities and stockholders'
equity $ 98,809 $
92,563
Page 13 of 15 pages
PART II - OTHER INFORMATION
PART II - OTHER INFORMATION
Item 1 - Legal Proceedings
None
Item 2 - Changes in Securities
None
Item 3 - Defaults Upon Senior Securities
Not applicable
Item 4 - Submission of Matters to a Vote of Security Holders
None
Item 5 - Other Information
None
Item 6 - Exhibits and Reports on Form 8-K
(a) Exhibits - None
(b) Reports on Form 8-K - None
Page 14 of 15 pages
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.
/s/
Clyde H. Bookheimer,
President and Chief Executive
Officer
Date /s/
Doriann Hoffman, Vice
President (Principal Financial
Officer)
Page 15 of 15 pages
<TABLE> <S> <C>
<ARTICLE> 9
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> JUN-30-1996
<CASH> 3,024
<INT-BEARING-DEPOSITS> 0
<FED-FUNDS-SOLD> 0
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 0
<INVESTMENTS-CARRYING> 28,915
<INVESTMENTS-MARKET> 28,915
<LOANS> 62,988
<ALLOWANCE> 372
<TOTAL-ASSETS> 101,080
<DEPOSITS> 88,398
<SHORT-TERM> 2,700
<LIABILITIES-OTHER> 473
<LONG-TERM> 0
<COMMON> 309
0
0
<OTHER-SE> 9,200
<TOTAL-LIABILITIES-AND-EQUITY> 101,080
<INTEREST-LOAN> 2,795
<INTEREST-INVEST> 873
<INTEREST-OTHER> 41
<INTEREST-TOTAL> 3,709
<INTEREST-DEPOSIT> 1,858
<INTEREST-EXPENSE> 1,872
<INTEREST-INCOME-NET> 1,837
<LOAN-LOSSES> 0
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 1,178
<INCOME-PRETAX> 824
<INCOME-PRE-EXTRAORDINARY> 607
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 607
<EPS-PRIMARY> 1.23
<EPS-DILUTED> 1.23
<YIELD-ACTUAL> 4.08
<LOANS-NON> 310
<LOANS-PAST> 439
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 345
<CHARGE-OFFS> 4
<RECOVERIES> 34
<ALLOWANCE-CLOSE> 375
<ALLOWANCE-DOMESTIC> 375
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
