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 September 30, 1999 Commission file number:
33-850626
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 October 25, 1999
(Common stock, .625 par value) 495,000
Page 1 of 19 pages
FULTON BANCSHARES CORPORATION
INDEX
Page
PART I - FINANCIAL INFORMATION
Condensed consolidated balance sheets - September 30, 1999
and December 31, 1998 3
Condensed consolidated statements of income - three months
ended September 30, 1999 and 1998 4
Condensed consolidated statements of comprehensive income -
three months ended September 30, 1999 and 1998 5
Condensed consolidated statements of income - nine months
ended September 30, 1999 and 1998 6
Condensed consolidated statements of comprehensive income -
nine months ended September 30, 1999 and 1998 7
Condensed consolidated statements of cash flows - nine
months ended September 30, 1999 and 1998 8
Notes to condensed consolidated financial statements 9 - 11
Management's discussion and analysis of financial
condition and results of operations 12 - 17
PART II - OTHER INFORMATION 18
Signatures 19
Page 2 of 19 page
PART I - FINANCIAL INFORMATION
FULTON BANCSHARES CORPORATION AND ITS WHOLLY-OWNED SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
September 30, December 31,
1999 1998 *
ASSETS (Unaudited)
(000 Omitted)
Cash and due from banks $ 2,645 $ 3,301
Available-for-sale securities 23,998 28,606
Federal Reserve, Atlantic Central Bankers Bank,
Federal Home Loan Bank, at cost which
approximates market 870 577
Loans, net of allowance for loan losses 89,839 80,214
Bank building, equipment, furniture &
fixtures, net 3,661 2,667
Other real estate owned 230 140
Accrued interest/dividends receivable 852 733
Cash surrender value of life insurance 2,994 3,166
Other assets 608 245
Total assets $ 125,697 $ 119,649
LIABILITIES
Deposits:
Noninterest-bearing deposits $ 11,346 $ 11,553
Interest-bearing deposits:
Savings deposits 29,707 31,488
Time deposits 57,992 56,300
Total deposits 99,045 99,341
Accrued interest payable 444 392
Federal funds borrowed 0 2,100
Other borrowed money 12,850 5,000
Other liabilities 507 337
Total liabilities 112,846 107,170
STOCKHOLDERS' EQUITY
Capital stock, common, par value - $ 0.625;
4,000,000 shares authorized; 495,000
shares issued and outstanding, at
September 30, 1999 and December 31,
1998 309 309
Surplus 2,051 2,051
Retained earnings 10,883 10,036
Accumulated other comprehensive income ( 392) 83
Total stockholders' equity 12,851 12,479
Total liabilities and
stockholders' equity $ 125,697 $ 119,649
* Condensed from audited financial statements
The accompanying notes are an integral part of these condensed
financial statements.
Page 3 of 19 pages
FULTON BANCSHARES CORPORATION AND ITS WHOLLY-OWNED SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
THREE MONTHS ENDED SEPTEMBER 30, 1999 AND 1998
(UNAUDITED)
1999 1998
(000 Omitted)
Interest & Dividend Income
Interest & fees on loans $ 1,887 $ 1,721
Interest & dividends on investment
securities:
U.S. Government securities 201 221
Obligations of state & political
subdivisions 76 73
Interest on federal funds sold 0 10
Other interest & dividend income 86 79
Total interest & dividend income 2,750 2,104
Interest Expense
Interest on deposits 931 993
Interest on federal funds purchased 1 6
Interest on other borrowed money 160 40
Total interest expense 1,092 1,039
Net interest income before
provision for loan losses 1,158 1,065
Provision for loan losses 80 0
Net interest income after provision
for loan losses 1,078 1,065
Other Income
Service charges on deposit accounts 38 33
Other fee income 33 32
Other noninterest income 65 51
Securities gains (losses) 0 0
Total other income 136 116
Other Expense
Salaries and employee benefits 348 329
Fixed asset expenses (including
depreciation) 156 139
FDIC insurance premiums 2 2
Other noninterest expenses 237 239
Total other expenses 743 709
Net income before income taxes 471 472
Applicable income taxes 96 120
Net income $ 375 $ 352
Weighted average number of shares
outstanding 495,000 495,000
Net income per share $ .76 $ .71
Cash dividends declared per share $ .20 $ .19
The accompanying notes are an integral part of these condensed
financial statements.
Page 4 of 19 pages
FULTON BANCSHARES, CORPORATION AND ITS WHOLLY-OWNED SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
THREE MONTHS ENDED SEPTEMBER 30, 1999 and 1998
(UNAUDITED)
1999 1998
(000 Omitted)
Net income $ 375 $ 352
Other comprehensive income, net of tax
Unrealized gain (loss) on investments
available for sale ( 218) 102
Reclassification adjustment for (gains)
losses included in net income 0 0
Comprehensive income $ 157 $ 454
The accompanying notes are an integral part of these condensed
financial statements.
Page 5 of 19 pages
FULTON BANCSHARES CORPORATION AND ITS WHOLLY-OWNED SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
NINE MONTHS ENDED SEPTEMBER 30, 1999 AND 1998
(UNAUDITED)
1999 1998
(000 Omitted)
Interest & Dividend Income
Interest & fees on loans $ 5,443 $ 5,049
Interest & dividends on investment
securities:
U.S. Government securities 631 623
Obligations of state & political
subdivisions 226 214
Interest on federal funds sold 1 15
Other interest & dividend income 257 236
Total interest & dividend income 6,558 6,137
Interest Expense
Interest on deposits 2,774 2,915
Interest on federal funds purchased 4 24
Interest on other borrowed money 420 142
Total interest expense 3,198 3,081
Net interest income before
provision for loan losses 3,360 3,056
Provision for loan losses 180 185
Net interest income after provision
for loan losses 3,180 2,871
Other Income
Service charges on deposit accounts 111 103
Other fee income 93 120
Other noninterest income 237 335
Securities gains (losses) 2 4
Total other income 443 562
Other Expense
Salaries and employee benefits 985 963
Fixed asset expenses (including
depreciation) 448 417
FDIC insurance premiums 8 8
Other noninterest expenses 765 728
Total other expenses 2,206 2,116
Net income before income taxes 1,417 1,317
Applicable income taxes 302 300
Net income $ 1,115 $ 1,017
Weighted average number of shares
outstanding 495,000 495,000
Net income per share $ 2.25 $ 2.05
Cash dividends declared per share $ .54 $ .52
The accompanying notes are an integral part of these condensed
financial statements.
Page 6 of 19 pages
FULTON BANCSHARES, CORPORATION AND ITS WHOLLY-OWNED SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
NINE MONTHS ENDED SEPTEMBER 30, 1999 AND 1998
(UNAUDITED)
1999 1998
(000 Omitted)
Net income $ 1,115 $ 1,017
Other comprehensive income, net of tax
Unrealized gain (loss) on investments
available for sale ( 473) 62
Reclassification adjustment for (gains)
losses included in net income ( 2) ( 3)
Comprehensive income $ 640 $ 1,076
The accompanying notes are an integral part of these condensed
financial statements.
Page 7 of 19 pages
FULTON BANCSHARES, CORPORATION AND ITS WHOLLY-OWNED SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
Nine Months Ended September 30, 1999 and 1998
(UNAUDITED)
1999 1998
(000 Omitted)
Cash flows from operating activities:
Net income $ 1,115 $ 1,017
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization 223 204
Provision for loan losses 180 185
Gain on sale - OREO 0 ( 178)
Other - Net ( 228) ( 164)
Net cash provided by operating activities 1,290 1,064
Cash flows from investing activities:
Sale of OREO 0 309
Purchase of investment securities -
available-for-sale ( 939) ( 11,389)
Purchase of Federal Home Loan Bank Stock ( 293) 0
Sales of available-for-sale securities 1,843 5,376
Maturities of available-for-sale securities 2,986 3,806
Net (increase) in loans ( 9,805) ( 5,737)
Proceeds of director's life insurance 383 0
Deposits/improvements on OREO property ( 90) ( 2)
Purchases of & deposits on bank premises
and equipment - net ( 1,217) ( 378)
Net cash (used) by investing activities ( 7,132) ( 8,015)
Cash flows from financing activities:
Net increase (decrease) in deposits ( 296) 6,627
Dividends paid ( 268) ( 257)
Net increase (decrease)in federal funds
borrowed ( 2,100) 0
Net increase (decrease) in other
borrowed money 7,850 3,880
Net cash provided by financing activities 5,186 10,250
Net increase (decrease) in cash and cash
equivalents ( 656) 3,299
Cash and cash equivalents, beginning balance 3,301 2,744
Cash and cash equivalents, ending balance $ 2,645 $ 6,043
Supplemental disclosure of cash flows information:
Cash paid during the period for:
Interest $ 3,146 $ 3,009
Income taxes 371 317
Supplemental schedule of noncash investing
and financing activities:
Change in net unrealized gain on investments
available for sale (net of deferred taxes) ( 475) 59
The accompanying notes are an integral part of these condensed
financial statements.
Page 8 of 19 pages
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
SEPTEMBER 30, 1999
(UNAUDITED)
Note 1. Basis of Presentation
The financial information presented at and for the six months
ended September 30, 1999 and 1998 is unaudited. Information
presented at December 31, 1998 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, 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 statements
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 9 of 19 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 shares for the quarters ended
September 30, 1999 and 1998.
Note 7. Investment Securities
The carrying amounts of investment securities and their
approximate fair values at September 30, 1999 were as
follows:
Gross Gross
Amortized Unrealized Unrealized Fair
Cost Gains (Losses) Value
Debt securities available for sale:
FNMA/FHLMC non-
cumulative
preferred
stocks $ 4,984,344 $ 1,800 ($ 248,329) $ 4,737,815
State & municipal
securities 6,141,438 74,457 ( 164,822) 6,051,073
U.S. Government
agencies 8,251,572 0 ( 158,932) 8,092,640
Mortgage-backed
securities 5,082,978 2,079 ( 100,980) 4,984,077
Equity
securities 132,000 0 0 132,000
$ 24,592,332 $ 78,336 ($ 673,063) $ 23,997,605
There were no securities categorized "Held-to-maturity" or
"Trading" at September 30, 1999.
Note 8. Comprehensive Income
Statement of Financial Accounting Standards (SFAS) No. 130,
"Reporting of Comprehensive Income" defines comprehensive
income as the change in equity from transactions and other
events from nonowner sources. It includes all changes in
equity except those resulting from investments by owners and
distributions to owners.
Page 10 of 19 pages
Note 8. Comprehensive Income (Continued)
Comprehensive income includes net income and certain elements
of "other comprehensive income" such as foreign currency
transactions; accounting for futures contracts; employers
accounting for pensions; and accounting for certain
investments in debt and equity securities. The only element
of "other comprehensive income" that the Bank has is the
unrealized gain or loss on available for sale securities.
Consequently, a "Statement of Comprehensive Income" has been
included in this filing.
Page 11 of 19 pages
FULTON BANCSHARES CORPORATION
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
OVERVIEW
Net after tax income for the first nine months of 1999 was
$ 1,115,000 compared to $ 1,017,000 for the same period in 1998,
representing an increase of $ 98,000, or 9.6%. Net income on an
adjusted per share basis for the first nine months of 1999 was $ 2.25,
an increase of $ .20 from the $ 2.05 per share realized during the nine
months ended September 30, 1998.
RESULTS OF OPERATIONS
Third Quarter 1999 vs. Third Quarter 1998
Interest income for the third quarter of 1999 was $ 2,250,000
compared to $ 2,104,000 for the third quarter of 1998, for an increase
of $ 146,000, or 6.9%. The increase was due primarily to higher
average balances of loans that typically produce higher yields than
investments in 1999 compared with the same period in 1998.
Interest expense for the third quarter of 1999 was
$ 1,092,000, an increase of $ 53,000, or 5.1% over the $ 1,039,000 for
the same period in 1998. The increase was due primarily to higher
average balances of borrowed monies, which were used to fund loan
growth in 1999 compared with the same period in 1998.
Net interest income for the third quarter of 1999 totaled
$ 1,158,000, up $ 93,000, or 8.7%, from the third quarter of 1998.
Nine Months 1999 vs. Nine Months 1998
Interest income for the first nine months of 1999 was
$ 6,558,000 compared to $ 6,137,000 for the first nine months of 1998,
for an increase of $ 421,000, or 6.9%. The increase was due primarily
to higher average balances of loans that typically produce higher
yields than investments in 1999 compared with the same period in 1998.
Management expects average rates earned for the rest of 1999 to be
slightly higher than the previous year since interest rates have risen.
Interest expense for the nine months ended September 30, 1999
was $ 3,198,000, an increase of $ 117,000, or 3.8% over the $ 3,081,000
for the same period in 1998. The increase was due primarily to higher
average balances of borrowed monies, which were used to fund loan
growth in 1999 compared with the same period in 1998. Management
expects interest expense to be higher for the rest of 1999 because
borrowed monies or more costly time deposits most likely will be used
to fund loan growth.
Page 12 of 19 pages
Net interest income for the first nine months of 1999 totaled
$ 3,360,000, up $ 304,000 or 9.0%, from the first nine months of 1998.
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
Third Quarter 1999 vs. Third Quarter 1998
Third quarter noninterest income increased from $ 116,000 in
1998 to $ 136,000 in 1999. Service charges on deposit accounts
increased $ 5,000 while other fee income increased $ 1,000. Other
noninterest income increased $ 14,000, primarily due to director life
insurance benefit income of $ 23,000.
Nine Months 1999 vs. Nine Months 1998
Noninterest income for the first nine months of 1999 and 1998
was $ 443,000 and $ 562,000, respectively. Service charges on deposit
accounts increased $ 8,000. Other fee income decreased $ 27,000
primarily because of a $ 37,000 decrease in fiduciary fees, since
effective January 4, 1999, the Bank's Trust Department was serviced by
an agent. Other noninterest income decreased $ 98,000 primarily due to
a $ 178,000 gain on sale of OREO reported during the first nine months
of 1998 which was partially offset by $ 114,000 director life insurance
benefit income reported during the first nine months of 1999.
OTHER EXPENSES
Third Quarter 1999 vs. Third Quarter 1998
Noninterest expenses for the third quarter of 1999 totaled
$ 743,000, an increase of $ 34,000, or 4.8%, over the $ 709,000 for the
third quarter of 1998. Salaries and employee related expenses were up
$ 19,000, or 5.8%. Fixed asset expenses were up $ 17,000, or 12.2%,
while other noninterest expenses were down $ 2,000, or 0.8%.
Nine Months 1999 vs. Nine Months 1998
Noninterest expenses for the first nine months of 1999 were
$ 2,206,000, an increase of $ 90,000, or 4.3%, from the $ 2,116,000 for
the first nine months of 1998. Salaries and employee related expenses
were up $ 22,000, or 2.3% due to merit pay increases offset by staff
turnover. Fixed asset expenses increased $ 31,000, or 7.4%, primarily
due to increased equipment and building maintenance costs and
depreciation. Other noninterest expenses increased $ 37,000, or 5.1%
compared with the first nine months of 1998 due to increases in
contributions, printing and supplies, Pennsylvania shares tax and other
overhead expenses.
Page 13 of 19 pages
INCOME TAXES
The income tax provision for the third quarter of 1999 was
$ 96,000 compared to $ 120,000 for the third quarter of 1998. The
effective income tax rate for the first nine months of 1999 was 21.3%
compared to 22.8% for the same period in 1998.
PROVISION FOR LOAN LOSSES
A $ 180,000 provision for loan losses was made for the first
nine months of 1999 compared to $ 185,000 for the first nine months of
1998. The provisions were based on management's evaluation of the
reserve for possible loan losses at September 30, 1999 and 1998.
A summary of the allowance for loan losses is as follows:
ANALYSIS OF ALLOWANCE FOR LOAN LOSSES
(In 000's)
September 30, 1999 September 30, 1998
Allowance for loan losses
Beginning of period $ 580 $ 487
Loans charged-off during the period:
Real estate loans 0 0
Installment loans 25 15
Commercial and all other loans 13 53
Total charge-offs 38 68
Recoveries of loans previously
charged-off:
Real estate loans 0 0
Installment loans 7 6
Commercial and all other
loans 61 8
Total recoveries 68 14
Net loans (charged-off) received 30 ( 54)
Provision for loan losses charged to
operations 180 185
Allowance for loan losses - end of
period $ 790 $ 618
The loan loss reserve at September 30, 1999 was $ 790,000
compared to $ 580,000 at December 31, 1998 and is considered adequate,
in management's judgment, to absorb reasonably estimated loan losses
inherent in the Bank's loan portfolio.
Page 14 of 19 pages
Loans 90 days or more past due (still accruing interest) and
those on nonaccrual status were as follows at September 30:
NONPERFORMING LOANS
(In 000's)
90 Days or More
Past Due Nonaccrual Status
1999 1998 1999 1998
Real estate loans $ 785 $ 459 $ 0 $ 0
Installment loans 7 0 0 0
Demand and time loans 4 0 0 13
Total loans $ 796 $ 459 $ 0 $ 13
There were no restructured loans for any of the time periods set
forth above.
FINANCIAL CONDITION
ASSETS
Total assets at September 30, 1999 were $ 125,697, a 5.1%
increase from $ 119,649,000 at December 31, 1998. Net loans at
September 30, 1999 totaled $ 89,839,000, an increase of $ 9,625,000, or
12.0% over the $ 80,214,000 at December 31, 1998. Management intends
to maintain steady growth and concentrate on maintaining adequate
profit margins.
LIABILITIES
Total deposits decreased 0.3% to $ 99,045,000 at September 30,
1999 compared to $ 99,341,000 at December 31, 1998. Noninterest-
bearing demand deposits decreased 1.8%. Savings deposits decreased
5.7%, while time deposits increased 3.0%.
CAPITAL
Total equity at September 30, 1999 was $ 12,851,000 representing
10.2% of total assets, an increase of $ 372,000 from the $ 12,479,000
at December 31, 1998. Accumulated earnings for the first nine months
of 1999 were partially offset by dividends declared and paid of
$ 268,000 and a $ 475,000 decrease in net unrealized gains on
available-for-sale securities (net of deferred tax). It is the
intention of management and the Board of Directors to continue to pay a
fair return on the stockholders' investment while retaining adequate
earnings to allow for continued growth.
Page 15 of 19 pages
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 September 30, 1999 is as follows:
Fulton Bancshares Regulatory Minimum
Corporation Requirements
Leverage ratio 10.6% 4%
Risk based capital ratios:
Tier I (core capital) 15.0% 4%
Combined tier I and tier
II (core capital plus
allowance for loan losses) 15.9% 8%
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)
Third Quarter
1999 1998
ASSETS
Federal funds sold $ 0 $ 439
Securities available for sale 24,121 26,012
Other investments 863 634
Loans 89,472 75,672
Total interest-earning assets 114,456 102,757
Cash and due from banks 3,197 2,596
Bank premises and equipment 3,187 2,647
All other assets 4,322 4,063
Allowance for loan losses ( 713) ( 623)
Total assets $ 124,449 $ 111,440
LIABILITIES
Interest-bearing deposits in domestic
offices $ 86,887 $ 86,257
Federal funds purchased 39 506
Other short-term borrowings 12,947 2,793
Total interest-bearing liabilities 99,873 89,556
Noninterest-bearing deposits 11,274 9,124
All other liabilities 588 740
Total liabilities 111,735 99,420
Page 16 of 19 pages
STOCKHOLDERS' EQUITY
Common stockholders' equity $ 13,002 $ 11,932
Net unrealized holding gains (losses),
net of tax ( 288) 88
Total stockholders' equity 12,714 12,020
Total liabilities and stockholders'
equity $ 124,449 $ 111,440
Page 17 of 19 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 18 of 19 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 19 of 19 pages
<TABLE> <S> <C>
<ARTICLE> 9
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> SEP-30-1999
<CASH> 2,645
<INT-BEARING-DEPOSITS> 0
<FED-FUNDS-SOLD> 0
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 0
<INVESTMENTS-CARRYING> 23,998
<INVESTMENTS-MARKET> 23,998
<LOANS> 90,629
<ALLOWANCE> 790
<TOTAL-ASSETS> 126,697
<DEPOSITS> 99,045
<SHORT-TERM> 12,850
<LIABILITIES-OTHER> 951
<LONG-TERM> 0
0
0
<COMMON> 309
<OTHER-SE> 12,542
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<INCOME-PRETAX> 1,417
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<EXTRAORDINARY> 0
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<NET-INCOME> 1,115
<EPS-BASIC> 2.25
<EPS-DILUTED> 2.25
<YIELD-ACTUAL> 4.06
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<LOANS-PAST> 796
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<ALLOWANCE-OPEN> 580
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<ALLOWANCE-CLOSE> 790
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