<PAGE>
<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 10-Q
(X) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended MARCH 31, 2000
------------------------------------------
Commission file number 0-26350
--------------------------------------------------
ALLEGIANT BANCORP, INC.
- ------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
MISSOURI 43-1519382
- ---------------------------- ------------------------------------
(State or other jurisdiction (I.R.S. Employer Identification No.)
of incorporation or
organization)
2122 KRATKY ROAD
ST. LOUIS, MISSOURI 63114
- ------------------------------------------------------------------------
(Address of principal executive offices)
(Zip Code)
(314) 692-8200
- ------------------------------------------------------------------------
(Registrant's telephone number, including area code)
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 such 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.
/x/ Yes / / No
Number of shares
Title of class outstanding as of May 1, 2000
- ---------------------------------------- -------------------------------
Common stock, $0.01 par value 6,072,647
<PAGE>
<PAGE>
ALLEGIANT BANCORP, INC.
FORM 10-Q
<TABLE>
INDEX
<CAPTION>
Page
<S> <C>
PART 1. FINANCIAL INFORMATION 1
ITEM 1. FINANCIAL STATEMENTS 1
CONSOLIDATED BALANCE SHEETS - MARCH 31, 2000 AND 1999 (UNAUDITED)
AND DECEMBER 31, 1999 1
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) - THREE MONTHS ENDED
MARCH 31, 2000 AND 1999 2
CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY (UNAUDITED) - THREE MONTHS
ENDED MARCH 31, 2000 3
CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED) - THREE MONTHS ENDED
MARCH 31, 2000 4
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 5
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS 7
DISTRIBUTION OF AVERAGE ASSETS, LIABILITIES AND SHAREHOLDERS' EQUITY AND
INTEREST RATES - THREE MONTHS ENDED MARCH 31, 2000 AND 1999 10
RATE/VOLUME ANALYSIS - QUARTER ENDED MARCH 31, 2000 11
SECURITIES PORTFOLIO 13
LENDING AND CREDIT MANAGEMENT 14
RISK ELEMENTS - NONACCURAL, PAST DUE AND RESTRUCTURED LOANS 15
SUMMARY OF LOAN LOSS EXPERIENCE AND RELATED INFORMATION 17
DEPOSIT LIABILITY COMPOSITION - MARCH 31, 2000 AND 1999, AND DECEMBER 31, 1999 18
LIQUIDITY MANAGEMENT AND CAPITAL RESOURCES 19
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 21
PART II. OTHER INFORMATION 21
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K 21
SIGNATURES 22
EXHIBIT INDEX 23
</TABLE>
i
<PAGE>
<PAGE>
PART 1. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
<TABLE>
ALLEGIANT BANCORP, INC.
CONSOLIDATED BALANCE SHEETS
<CAPTION>
March 31, December 31, March 31,
2000 1999 1999
(Unaudited) (Unaudited)
----------- ------------ -----------
(Dollars in thousands, except per share amounts)
<S> <C> <C> <C>
ASSETS:
Cash and due from banks $ 16,820 $ 16,842 $ 12,855
Federal funds sold and overnight investments 68 9,927 4,475
Investment securities:
Available-for-sale (at estimated market value) 54,748 49,129 45,075
Held-to-maturity (estimated market value of
$5,934, $11,284 and $10,927, respectively) 6,106 11,668 10,852
Loans, net of allowance for loan losses of
$9,007, $8,315 and $6,767, respectively 656,815 606,876 513,539
Premises and equipment 9,770 9,896 10,866
Accrued interest and other assets 28,120 12,430 10,747
Cost in excess of fair value and net assets acquired 11,486 11,724 12,448
-------- -------- --------
Total assets $783,933 $728,492 $620,857
======== ======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY:
Deposits:
Non-interest bearing $ 63,174 $ 51,845 $ 51,627
Interest bearing 483,682 449,071 396,378
Certificates of deposit of $100,000 or more 57,524 47,550 33,033
-------- -------- --------
Total deposits 604,380 548,466 481,038
-------- -------- --------
Short-term borrowings 84,451 75,861 47,039
Long-term debt 25,860 35,860 40,275
Guaranteed preferred beneficial interest in
subordinated debentures 17,250 17,250 -
Accrued expenses and other liabilities 4,205 3,064 3,446
-------- -------- --------
Total liabilities 736,146 680,501 571,798
-------- -------- --------
Shareholders' equity:
Common Stock, $0.01 par value - authorized
20,000,000 shares; issued 6,072,647 shares,
6,208,102 shares and 6,558,015 shares,
respectively 66 66 65
Capital surplus 42,373 42,373 42,026
Retained earnings 11,806 10,482 7,057
Accumulated other comprehensive loss (843) (754) (89)
Treasury stock, at cost, 554,715 shares,
419,260 shares and 0 shares, respectively (5,615) (4,176) -
-------- -------- --------
Total shareholders' equity 47,787 47,991 49,059
-------- -------- --------
Total liabilities and shareholders' equity $783,933 $728,492 $620,857
======== ======== ========
See Notes to Condensed Consolidated Financial Statements.
</TABLE>
1
<PAGE>
<PAGE>
<TABLE>
ALLEGIANT BANCORP, INC.
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
<CAPTION>
Three Months Ended
March 31,
-------------------------
2000 1999
---------- ----------
(In thousands, except share and per share data)
<S> <C> <C>
Interest income:
Interest and fees on loans $ 14,598 $ 11,073
Investment securities 936 773
Federal funds sold and overnight investments 5 79
---------- ----------
Total interest income 15,569 11,925
---------- ----------
Interest expense:
Interest on deposits 6,444 4,856
Interest on short-term borrowings 1,064 639
Interest on long-term debt 450 593
Interest on guaranteed preferred beneficial
interest in subordinated debentures 443 -
---------- ----------
Total interest expense 8,401 6,088
---------- ----------
Net interest income 7,168 5,837
Provision for loan losses 715 562
---------- ----------
Net interest income after
provision for loan losses 6,453 5,275
---------- ----------
Other income:
Service charges on deposits 707 437
Net gain on sale of securities 36 -
Other income 506 817
---------- ----------
Total other income 1,249 1,254
---------- ----------
Other expenses:
Salaries and employee benefits 2,510 2,445
Occupancy and furniture and equipment 804 764
Other operating expenses 1,617 1,649
---------- ----------
Total other expenses 4,931 4,858
---------- ----------
Income before income taxes 2,771 1,671
Provision for income taxes 1,136 669
---------- ----------
Net income $ 1,635 $ 1,002
========== ==========
Per share data:
Earnings per share:
Basic $ 0.27 $ 0.15
Diluted 0.26 0.15
Weighted average common shares outstanding:
Basic 6,139,750 6,551,835
Diluted 6,181,940 6,680,485
See Notes to Condensed Consolidated Financial Statements.
</TABLE>
2
<PAGE>
<PAGE>
<TABLE>
ALLEGIANT BANCORP, INC.
CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY (UNAUDITED)
<CAPTION>
Accumulated
Other Total
Common Capital Retained Comprehensive Treasury Shareholders' Comprehensive
Stock Surplus Earnings Loss Stock Equity Income (Loss)
------ ------- -------- ------------- -------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C> <C>
Balance December 31, 1999 $ 66 $42,373 $10,482 $ (754) $(4,176) $ 47,991
Net income - - 1,635 - - 1,635 $ 1,635
Change in net unrealized losses
on available-for-sale
securities - - - (89) - (89) (89)
--------
Comprehensive income - - - - - - $ 1,546
========
Repurchase of common stock - - - - (1,439)
Dividends - - (311) - - (311)
----- ------- ------- ------- ------- ---------
Balance March 31, 2000 $ 66 $42,373 $11,806 $ (843) $(5,615) $ 47,787
===== ======= ======= ======= ======= =========
Reclassification adjustments:
Unrealized losses on
available-for-sale
securities $ (89)
Less:
Reclassification adjustment
for gains realized included
in net income -
-------
Net unrealized losses on
available-for-sale securities $ (89)
=======
</TABLE>
3
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<PAGE>
<TABLE>
ALLEGIANT BANCORP, INC.
CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED)
<CAPTION>
Three Months Ended
March 31,
-----------------------------
2000 1999
-------- --------
(In thousands)
<S> <C> <C>
OPERATING ACTIVITIES:
Net income $ 1,635 $ 1,002
Adjustments to reconcile net income to
net cash provided by operating activities:
Depreciation and amortization 644 873
Provision for loan losses 715 562
Net realized gains on securities available-for-sale (36) -
Other changes in assets and liabilities:
Accrued interest receivable and other assets (605) 577
Accrued expenses and other liabilities 1,141 (128)
-------- --------
Cash provided by operating activities 3,494 2,886
-------- --------
INVESTING ACTIVITIES:
Proceeds from maturities of securities held-to-maturity 5,562 1,188
Proceeds from maturities of securities available-for-sale 678 9,659
Proceeds from sales of securities available-for-sale 137 -
Purchase of investment securities available-for-sale (6,535) (12,281)
Loans made to customers, net of repayments (50,654) (24,874)
Purchase of bank-owned life insurance (15,037) -
Additions to premises and equipment (280) (266)
-------- --------
Cash used in investing activities (66,129) (26,574)
-------- --------
FINANCING ACTIVITIES:
Net increase in deposits 55,914 30,273
Net decrease in short-term borrowings (1,410) (6,503)
Proceeds from issuance of common stock - 128
Repurchase of common stock (1,439) -
Payment of dividends (311) (3)
-------- --------
Cash provided by financing activities 52,754 23,895
-------- --------
Net (decrease) increase in cash and cash equivalents (9,881) 207
Cash and cash equivalents, beginning of period 26,769 17,123
-------- --------
Cash and cash equivalents, end of period $ 16,888 $ 17,330
======== ========
See Notes to Condensed Consolidated Financial Statements.
</TABLE>
4
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<PAGE>
ALLEGIANT BANCORP, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
Basis of Presentation
The accompanying condensed consolidated financial statements
include the accounts of Allegiant Bancorp, Inc. and our subsidiaries:
Allegiant Bank and Edge Mortgage Services, Inc. ("Edge"). The results
of operations of Edge are included through March 19, 1999, the date Edge
was sold to a former officer of Allegiant. The sale had no material
effect on our consolidated financial statements. The terms "Allegiant,"
"company," "we" and "our" as used in this report refer to Allegiant
Bancorp, Inc. and our subsidiaries as a consolidated entity, except
where it is made clear that it means only the parent holding company.
Also, sometimes we refer to our bank subsidiary as the "bank."
The accompanying unaudited condensed consolidated financial
statements have been prepared in accordance with generally accepted
accounting principles for interim financial information and with the
instructions to Form 10-Q and Article 10 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. In the opinion of management, all adjustments
(consisting of normal recurring accruals) considered necessary for a
fair presentation have been included. Operating results for the three-
month period ended March 31, 2000 are not necessarily indicative of the
results that may be expected for the year ending December 31, 2000.
The balance sheet at December 31, 1999 has been derived from the
audited financial statements at that date but does not include all of
the information and footnotes required by generally accepted accounting
principles for complete financial statements.
For further information, refer to the consolidated financial
statements and footnotes thereto included in our Annual Report on Form
10-K for the year ended December 31, 1999.
Comprehensive Income
During the first quarter of 2000 and 1999, total comprehensive
income amounted to $1.55 million and $830,000, respectively.
Trust Preferred Securities
In August 1999, we completed a public offering of 1,500,000 9.875%
Cumulative Trust Preferred Securities. The Trust Preferred Securities
were issued by our subsidiary, Allegiant Capital Trust I, a Delaware
statutory business trust. The Trust Preferred Securities have a
liquidation amount of $10 per security and represent preferred undivided
interests in the assets of the Trust which consist solely of the
debentures described below, and payments in respect thereof.
5
<PAGE>
<PAGE>
The Trust utilized the proceeds from the sale of the trust
preferred securities to purchase at par approximately $15.0 million
aggregate principal amount of 9.875% junior subordinated debentures
issued by us. The junior subordinated debentures bear interest at the
rate of 9.875% per annum, payable quarterly, and mature in August 2029,
subject to earlier repayment at our option at a date no earlier than
August 2004. In addition, we may redeem the junior subordinated
debentures prior to such date within 90 days after: the occurrence of
certain tax events; the Trust being deemed to be an investment company;
or there being an adverse change in the treatment of the trust preferred
securities as Tier 1 capital for bank regulatory purposes. We have the
right to defer payments of interest on the junior subordinated
debentures for up to 20 consecutive quarters, but not beyond their
stated maturity date. During any period of interest deferral, we may not
declare or pay cash dividends on, or redeem our capital stock or repay
any debt securities which rank junior to the junior subordinated
debentures.
We used the proceeds from the sale of the junior subordinated
debentures, after payment of expenses of approximately $1.0 million, to
infuse approximately $8.0 million of capital into the bank and to repay
approximately $2.5 million of corporate indebtedness, including $2.0
million which was used to repurchase shares of our common stock. The
balance of the proceeds are being used for general corporate purchases,
including possible future repurchases of our common stock.
Common Stock Repurchase
In July 1999, we repurchased 233,219 shares of our common stock in
a privately negotiated transaction. The aggregate purchase price was
$2.3 million, which was funded by a $2.0 million borrowing under our
revolving line of credit and by cash on hand. We repaid the revolving
line of credit in August 1999 with the proceeds of our trust preferred
securities offering and we also prepaid $500,000 of our term loan with
such proceeds.
On September 15, 1999, we announced a share repurchase program of
up to 5% of our outstanding common stock, or approximately 319,000
shares. We intend to utilize shares repurchased under the program to
meet obligations under our stock option plans and other stock based
plans while minimizing dilution of shareholders. By March 31, 2000, we
had purchased all 319,000 shares authorized under the repurchase
program.
6
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<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
This report contains certain forward-looking statements with
respect to the financial condition, results of operations and business
of Allegiant and our subsidiaries. These forward-looking statements
involve certain risks and uncertainties. For example, by accepting
deposits at fixed rates, at different times and for different terms, and
lending funds at fixed rates for fixed periods, we accept the risk that
the cost of funds may rise and interest on loans and investment
securities may be at a fixed rate. Similarly, the cost of funds may
fall, but we may have committed by virtue of the term of a deposit to
pay what becomes an above-market rate. Investments may decline in value
in a rising interest rate environment. Loans have the risk that the
borrower will not repay all funds in a timely manner, as well as the
risk of total loss. Collateral may or may not have the value attributed
to it. The loan loss reserve, while believed adequate, may prove
inadequate if one or more large borrowers, or numerous smaller
borrowers, or a combination of both, experience financial difficulty for
individual, national or international reasons. Because the business of
banking is highly regulated, decisions of governmental authorities, such
as the rate of deposit insurance, can have a major effect on operating
results. All of these uncertainties, as well as others, are present in
a banking operation and shareholders are cautioned that management's
view of the future on which it prices our products, evaluates
collateral, sets loan reserves and estimates costs of operation and
regulation may prove to be other than anticipated.
OVERVIEW
The profitability of our operations depends on our net interest
income, provision for loan losses, non-interest income and non-interest
expense. Net interest income is the difference between the income we
receive on our loan and investment portfolios and our cost of funds,
which consists of interest paid on deposits and borrowings. The
provision for loan losses reflects the cost of credit risk in our loan
portfolio. Non-interest income consists primarily of service charges on
deposit accounts and fees for ancillary banking services and, to a
lesser extent, revenues generated from our mortgage banking, securities
brokerage, insurance brokerage and trust operations. Non-interest
expense includes salaries and employee benefits as well as occupancy,
data processing, marketing, professional fees, insurance and other
expenses.
Net interest income is dependent on the amounts and yields of
interest earning assets compared to the amounts and rates on interest
bearing liabilities. Net interest income is sensitive to changes in
market rates of interest and our asset/liability management procedures
in managing those changes. The provision for loan losses is dependent on
increases in the loan portfolio, management's assessment of the
collectibility of the loan portfolio and loss experience, as well as
economic and market factors.
Since the beginning of 1998, we have focused primarily upon
improving the profitability of our banking operations. As a result we
have reduced the amount of one- to four-family mortgages we hold in our
loan portfolio, while increasing the amount of higher yielding
commercial loans. We also have hired several experienced banking
professionals with experience in the St. Louis metropolitan area. We
have refined our market focus to concentrate exclusively on
opportunities in the higher-growth St. Louis metropolitan area and,
accordingly, we sold three retail banking offices in northeastern
Missouri in December 1998. We also have implemented company-wide cost-
control efforts to enhance efficiencies at our entire operations.
7
<PAGE>
<PAGE>
Our primary financial objectives are to continue to grow our loan
portfolio while maintaining high asset quality, expand our core deposit
base to provide a cost-effective and stable source of funding our loan
portfolio and increase non-interest income while maintaining strong
expense controls. We believe we have maintained high asset quality while
managing growth both internally and by acquisition. We also believe our
history of strong credit quality has resulted from sound credit
practices.
RESULTS OF OPERATIONS
Net income for the three months ended March 31, 2000 was $1.6
million, a 64% increase over the $1.0 million earned for the first
quarter of 1999. Basic earnings per share were $0.27 for the first
quarter of 2000 compared to $0.15 for the first quarter of 1999.
Diluted earnings per share increased 73% to $0.26 for the first quarter
of 2000 compared to $0.15 for the first quarter of 1999. The annualized
return on average assets for the first quarter of 2000 was 0.87% and
represented a 32% improvement over the 0.66% annualized return on
average assets reported for the first quarter of 1999. The return on
average equity on an annualized basis was 14% for the first quarter of
2000 compared to 8% for the first quarter of 1999.
We have utilized the purchase method of accounting to reflect our
business combinations. The purchase method results in the recording of
goodwill that is amortized as a non-cash charge to operating expenses.
Goodwill amortization included as an operating expense totaled $237,000
for the three months ended March 31, 2000 and $250,000 for the first
quarter of 1999. Cash net income, which adjusts earnings to exclude
goodwill amortization, was $1.87 million and $1.25 million for the
quarters ended March 31, 2000 and 1999, respectively. Basic cash
earnings per share increased 63% to $0.31 in the first quarter of 2000
compared to $0.19 in the first quarter of 1999. Diluted cash earnings
per share increased 58% to $0.30 in the recently completed quarter
compared to $0.19 in the 1999 period.
Total assets at March 31, 2000 increased to $783.9 million from
$728.5 million at December 31, 1999. Asset growth during the period was
primarily in loans which before allowance for loan losses, increased
$50.6 million, or 8.2%. Deposit balances increased $55.9 million, or
10.2%, during the first quarter of 2000. Certificates of deposit
increased $49.0 million representing the majority of the net deposit
growth during the quarter. This growth was a result of certificate of
deposit promotions during the first quarter of 2000. Non-interest
bearing deposits also increased $11.3 million during the first three
months of 2000, while NOW accounts decreased $4.0 million.
Net Interest Income. Net interest income for the three months
ended March 31, 2000 was $7.2 million, a 22.8% increase compared to the
$5.8 million reported for the first quarter of 1999. This $1.3 million
increase was attributable to a 34 basis point increase in the yield on
earning assets and an increase of $138.6 million in average earning
assets. The $3.6 million increase in interest income was partially
offset by a $2.3 million increase in interest expense. The increase in
interest expense was the result of a $132.0 million increase in average
interest bearing liabilities and an increase of 42 basis points in the
average interest rate paid between the periods.
Net interest margin for the first quarter of 2000 decreased 9
basis points compared to the first quarter of 1999. The earning assets
yield increased 34 basis points while the overall interest rate paid on
interest bearing deposits increased 42 basis points. The net interest
spread decreased 8 basis points comparing the first quarter 2000 to the
first quarter 1999.
8
<PAGE>
<PAGE>
Interest expense on deposits increased $1.6 million due to a $97.0
million increase in average interest bearing deposits and due to an
increase in the rate paid on deposits from 4.75% in the first quarter of
1999 to 5.06% for the comparable period in 2000. The increase in
interest expense on deposits consisted primarily of a $1.2 million
increase in interest expense on certificates of deposit and a $365,000
increase in interest expense on money market and NOW accounts. The
average balance in certificates of deposit increased by $79.3 million
from the first quarter of 1999 compared to the first quarter of 2000 and
average money market and NOW accounts increased $19.5 million. We
continue to build our deposit base while maintaining our focus on
personal service.
Interest expense on other interest bearing liabilities increased
$725,000 in the first quarter of 2000 compared to the first quarter of
1999. We issued $17.2 million of trust preferred securities in August
1999 and the interest expense in the first quarter of 2000 on these
securities totaled $443,000 which accounted for the majority of the
increase in interest expense on other liabilities. Average short- and
long-term borrowings also increased $17.7 million in the first three
months of 2000 compared to the year earlier quarter. The average rate
on short-term borrowings increased 3 basis points while the rate paid on
long-term borrowings increased 22 basis points in the first quarter of
2000 compared to the first quarter of 1999.
9
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<PAGE>
The following table sets forth the condensed average balance
sheets for the periods reported. Also shown is the average yield on
each category of interest earning assets and the average rate paid on
interest bearing liabilities for each of the periods reported.
<TABLE>
DISTRIBUTION OF AVERAGE ASSETS, LIABILITIES AND SHAREHOLDERS' EQUITY AND INTEREST RATES
<CAPTION>
Three Months Ended March 31,
------------------------------------------------------------------------------------
2000 1999
--------------------------------------- ---------------------------------------
Average Int.Earned/ Yield/ Average Int.Earned/ Yield/
Balance Paid Rate Balance Paid Rate
-------- ----------- ------ -------- ----------- ------
(Dollars in thousands)
<S> <C> <C> <C> <C> <C> <C>
Assets:
Interest earning assets:
Loans<F1> $642,405 $14,598 9.14% $507,830 $11,074 8.84%
Taxable investment securities 58,656 908 6.22 51,217 755 5.90
Non-taxable investment securities<F2> 2,290 28 4.91 1,416 17 4.87
Federal funds sold and overnight
investments 2,481 35 5.70 6,807 79 4.71
-------- ------- -------- -------
Total interest earning assets 705,832 15,569 8.87 567,270 11,925 8.53
-------- ------- -------- -------
Non-interest earning assets:
Cash and due from banks 14,004 15,476
Premises and equipment 9,841 10,967
Other assets 27,909 23,667
Allowance for loan losses (8,535) (6,325)
-------- --------
Total assets $749,051 $611,055
======== ========
Liabilities and shareholders' equity:
Interest bearing liabilities:
Money market/NOW accounts $174,514 $ 1,895 4.37% $155,055 $ 1,530 4.00%
Savings deposits 13,081 68 2.09 14,877 79 2.15
Certificates of deposit 247,249 3,437 5.59 192,664 2,575 5.42
Certificates of deposit over $100,000 55,510 727 5.27 33,474 399 4.83
IRA certificates 21,376 317 5.96 18,669 273 5.93
-------- ------- -------- -------
Total interest bearing deposits 511,730 6,444 5.06 414,739 4,856 4.75
-------- ------- -------- -------
Federal funds purchased, repurchase
agreements and other short-term
borrowings 80,703 1,064 5.30 51,936 639 4.99
Other borrowings 29,267 450 6.19 40,275 593 5.97
Guaranteed preferred beneficial
interest in subordinated debentures 17,250 443 10.32 - - -
-------- ------- -------- -------
Total interest bearing liabilities 638,950 8,401 5.29 506,950 6,088 4.87
-------- ------- -------- -------
Non-interest bearing liabilities and
equity:
Demand deposits 57,389 51,796
Other liabilities 4,434 3,996
Shareholders' equity 48,278 48,313
-------- --------
Total liabilities and shareholders'
equity $749,051 $611,055
======== ========
Net interest income $ 7,168 $ 5,837
======= =======
Net interest spread 3.58% 3.66%
Net interest margin 4.08% 4.17%
<FN>
- -------------
<F1> Average balances include non-accrual loans.
<F2> Presented at actual yield rather than tax-equivalent yield.
</TABLE>
10
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<PAGE>
The following table sets forth for the periods indicated the
changes in interest income and interest expense which were attributable
to change in average volume and changes in average rates. Volume
variances are computed using the change in volume multiplied by the
previous year's rate. Rate variances are computed using the changes in
rate multiplied by the previous year's volume. The change in interest
due to both rate and volume has been allocated between the factors in
proportion to the relationship of the absolute dollar amounts of the
change in each.
<TABLE>
RATE/VOLUME ANALYSIS
<CAPTION>
Quarter Ended March 31, 2000
Compared to the
Quarter Ended March 31, 1999
--------------------------------------
Volume Rate Net Change
------ ------ ----------
(In thousands)
<S> <C> <C> <C>
Interest earned on:
Loans $3,126 $ 399 $3,525
Taxable investment securities 111 41 152
Non-taxable investment securities 11 - 11
Federal funds sold and overnight investments (58) 14 (44)
------ ------ ------
Total interest income 3,190 454 3,644
------ ------ ------
Interest paid on:
Money market/NOW accounts 210 155 365
Savings deposits (8) (3) (11)
Certificates of deposit 777 85 862
Certificates of deposit over $100,000 289 39 328
IRA certificates 43 1 44
Federal funds purchased, repurchase
agreements and other short-term
borrowings 382 43 425
Other borrowings (165) 22 (143)
Guaranteed preferred beneficial interest
in subordinated debentures 443 - 443
------ ------ ------
Total interest expense 1,971 342 2,313
------ ------ ------
Net interest income $1,219 $ 112 $1,331
====== ====== ======
</TABLE>
Note: The change in interest due to the combined rate-volume variance
has been allocated to rate and volume changes in proportion to the
absolute dollar amount of the changes in each.
11
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<PAGE>
Other Income. Other income decreased $5,000 from the first quarter
of 1999 and totaled $1.25 million for the three months ended March 31,
2000.
Service charge income for the three-month period ended March 31, 2000
increased $270,000 or 62%, compared to the first quarter of 1999. This
increase was attributable to an increased deposit base and our focus on
revenue enhancement programs. Operating lease income decreased $277,000
for the quarter ended March 31, 2000 from $295,000 for the comparable
period in 1999. The small decrease was related to management's decision
to decrease production of operating leases during the latter half of
1998.
For the quarter ended March 31, 2000 mortgage banking revenue was
$53,000 compared to $35,300 for the quarter ended March 31, 1999. The
change was the result of a general slow down in mortgage refinancings
and the March 1999 sale of Edge Mortgage, our former subsidiary.
Other Expenses. For the three months ended March 31, 2000 compared
to the first quarter of 1999, other expenses increased $73,000, or 1.5%,
to $4.9 million from $4.9 million. The modest increase in other expenses
was a direct result of our effort to control operating costs and was
accomplished with one additional branch opened during the first quarter
of 2000 compared to the first quarter of 1999.
Salaries and employee benefits increased 2.7% to $2.5 million for the
three months ended March 31, 2000 compared to $2.5 million for the three
months ended March 31, 1999. We had 215 full-time equivalent employees
at March 31, 2000 compared to 228 full-time equivalent employees at
March 31, 1999. Total annualized cost per full-time equivalent employee
was $46,697 for the three months ended March 31, 2000 compared to
$42,895 for the corresponding period of 1999.
Expenses associated with premises and equipment increased slightly
for the three-month period ended March 31, 2000 compared to the first
quarter of 1999, with occupancy expense increasing $20,000 and furniture
and equipment increasing $20,000.
Operating lease depreciation decreased by $10,000 to $205,000 for the
three months ended March 31, 2000 from $215,000 for the three months
ended March 31, 1999. This decrease also was reflective of our decision
to decrease production of operating leases in the latter half of 1998.
Our efficiency ratio was 59% for the quarter ended March 31, 2000
compared to 69% for the first quarter of 1999. This improvement
reflected our commitment to improving our overall efficiency by
continuing to emphasize revenue growth while maintaining control over
our operating costs.
12
<PAGE>
<PAGE>
Securities Portfolio. Our securities portfolio consists of
securities classified as held-to-maturity and available-for-sale. We
designate these securities at the time of purchase into one of these two
categories. At March 31, 2000, held-to-maturity securities amounted to
$6.1 million representing those securities we intended to hold to
maturity. Securities designated as available-for-sale totaled $54.7
million representing securities which we may sell to meet liquidity
needs or in response to significant changes in interest rates or
prepayment patterns.
For purposes of this discussion, held-to-maturity and available-for-sale
securities are described as the securities portfolio. At March 31,
2000, the securities portfolio totaled $60.9 million, an increase of
$57,000 from December 31, 1999. We maintain a conventional short-term
laddered portfolio investment strategy to provide adequate liquidity
while minimizing interest rate risk.
The carrying values of the securities portfolio at the dates
indicated were as follows:
<TABLE>
INVESTMENT SECURITIES PORTFOLIO
<CAPTION>
March 31, December 31, March 31,
2000 1999 1999
--------- ------------ ---------
(In thousands)
<S> <C> <C> <C>
U.S. government and agency securities $38,338 $39,024 $39,424
State and municipal securities 4,741 4,794 1,346
Mortgage-backed securities 9,772 9,397 10,792
Federal Home Loan Bank stock 7,124 7,124 3,574
Other securities 879 458 791
------- ------- -------
Total investment securities $60,854 $60,797 $55,927
======= ======= =======
</TABLE>
13
<PAGE>
<PAGE>
Loans. Loans historically have been the primary component of
earning assets. At March 31, 2000, loans totaled $665.8 million, an
increase of 8.2% from year-end 1999. Substantially all of these loans
were originated in our market area. At March 31, 2000, we had no
foreign loans and only a minimal amount of participations purchased.
Multi-family and commercial real estate mortgage loans showed the
largest increase of $28.3 million, or 12.0% during the first quarter of
2000. The increase in these loans reflected our efforts to grow our
commercial loan portfolio, including loans originated by our expanded
commercial lending staff. The second largest increase in loans involved
real estate construction loans, which increased $10.0 million, or 15.4%.
The increase was primarily due to loans made to home builders. As a
result of this emphasis, real estate construction loans comprised 11.3%
of the loan portfolio at March 31, 2000 compared to 10.6% at December
31, 1999. Multi-family and commercial real estate mortgage loans
comprised 39.6% of the portfolio at March 31, 2000 versus 38.2% at year-
end 1999.
The following table summarizes the composition of our loan
portfolio at the dates indicated:
<TABLE>
LENDING AND CREDIT MANAGEMENT
<CAPTION>
March 31, December 31, March 31,
2000 1999 1999
------------------------- ------------------------- ------------------------
Percent Percent Percent
Amount of Total Amount of Total Amount of Total
-------- -------- -------- -------- -------- --------
(Dollars in thousands)
<S> <C> <C> <C> <C> <C> <C>
Commercial, financial,
agricultural, municipal and
industrial development $149,326 22.43% $150,259 24.42% $129,523 24.89%
Real estate - construction 75,315 11.31 65,310 10.62 46,717 8.98
Real estate - mortgage
One- to four-family residential 154,149 23.15 161,264 22.96 117,894 22.66
Multi-family and commercial 263,459 39.57 235,158 38.22 205,192 39.44
Consumer and other 24,550 3.69 24,152 3.93 21,749 4.18
Less unearned income (977) (0.15) (952) (0.15) (769) (0.15)
-------- ------ -------- ------ -------- ------
Total loans<F1> $665,822 100.00% $615,191 100.00% $520,306 100.00%
======== ====== ======== ====== ======== ======
<FN>
- ------------
<F1> We had no outstanding foreign loans at the dates reported.
</TABLE>
Asset Quality. Non-performing assets consist of the following:
nonaccrual loans on which the ultimate collectibility of the full amount
of interest is uncertain; loans which have been renegotiated to provide
for a reduction or deferral of interest or principal because of a
deterioration in the financial condition of the borrower; and loans past
due 90 days or more as to principal or interest and other real estate
owned. Non-performing assets increased to $1.4 million at March 31,
2000 compared to $1.0 million at December 31, 1999. At March 31, 2000,
non-performing assets represented 0.18% of total assets compared to
0.14% at December 31, 1999. Non-accrual loans totaled $688,000 at March
31, 2000 compared to $606,000 at December 31, 1999.
14
<PAGE>
<PAGE>
We continually analyze our loan portfolio to identify potential
risk elements. The loan portfolio is reviewed by lending management and
the bank's internal loan review staff. As an integral part of their
examination process, the various regulatory agencies periodically review
our allowance for loan losses.
The following table summarizes, at the date presented, non-
performing assets by category:
<TABLE>
RISK ELEMENTS - NON-ACCURAL, PAST DUE AND RESTRUCTURED LOANS
<CAPTION>
March 31, December 31, March 31,
2000 1999 1999
--------- ------------ ---------
(Dollars in thousands)
<S> <C> <C> <C>
Commercial, financial, agricultural,
municipal and industrial development:
Past due 90 days or more $ 110 $ - $ -
Non-accrual 441 379 394
Restructured terms - - -
Real estate - construction
Past due 90 days or more - - -
Non-accrual - - -
Restructured terms - - -
Real estate - mortgage
One- to four-family residential
Past due 90 days or more 16 22 396
Non-accrual 189 178 849
Restructured terms - - -
Multi-family and commercial
Past due 90 days or more 210 - -
Non-accrual - - 241
Restructured terms - - -
Consumer and other, net of unearned
income:
Past due 90 days or more 3 - -
Non-accrual 59 49 30
Restructured terms - - -
------- --------- -------
Total non-performing loans 1,028 628 1,910
Other real estate 418 402 -
------- --------- -------
Total non-performing assets $ 1,446 $ 1,030 $ 1,910
======= ========= =======
Ratios:
Non-performing loans to total loans outstanding 0.22% 0.10% 0.37%
Non-performing assets to total assets 0.18 0.14 0.31
Non-performing loans to shareholders' equity 2.15 1.31 3.89
Allowance for loan losses to total loans 1.35 1.35 1.30
Allowance for loan losses to non-performing loans 622.89 1,324.20 354.24
</TABLE>
15
<PAGE>
<PAGE>
Allowance for Loan Losses. The provision for loan losses was
$715,000 during the first three months of 2000 compared to $562,000 for
the first quarter of 1999. Net charge-offs were $24,000 for the three
months ended March 31, 2000 compared to $238,000 for the first quarter
of 1999. Net charge-offs for the first three months of 2000 represented
less than 0.01% of average loans, compared to 0.05% of average loans for
the first three months of 1999.
The allowance for loan losses increased to $9.0 million at March
31, 2000 compared to $6.8 million at March 31, 1999. As a percentage of
loans outstanding, the allowance represented 1.35% of loans at March 31,
2000, 1.35% at December 31, 1999 and 1.30% at March 31, 1999.
The higher expense provision and the higher allowance percentage
were the result of the change in the composition of the loan portfolio
and the shift in our lending focus to higher yielding commercial
relationships. This shift, while providing higher earnings potential,
does entail greater risk than traditional residential mortgage loans.
Additional weight has been given to the increased risks associated with
the commercial real estate portfolio. Specific allowances have been
increased on certain commercial real estate loans based on individual
revenues of these borrowers and an estimate of the borrower's ability to
repay the loan given the availability of collateral, other sources of
cash flow and collection options available to us. The specific review
of these commercial real estate loans resulted in the increase in the
percentage of allowances allocated to this loan category.
The allowance for loan losses is provided at a level considered
adequate to provide for potential losses and, among other things, is
based on management's evaluation of the anticipated impact on the loan
portfolio of current economic conditions, changes in the character and
size of the loan portfolio and evaluation of potential problem loans
identified based on existing circumstances known to management. We
continually monitor the quality of the loan portfolio to ensure the
timely charge-off of problem loans and to determine the adequacy of the
level of the allowance for loan losses. We presently believe that our
asset quality, as measured by the statistics in the following table,
continues to be very high and that our allowance is adequate to absorb
potential losses inherent in the portfolio at March 31, 2000.
16
<PAGE>
<PAGE>
The following table summarizes, for the periods indicated,
activity in the allowance for loan losses, including amounts of loans
charged off, amounts of recoveries and additions to the allowance
charged to operating expense.
<TABLE>
SUMMARY OF LOAN LOSS EXPERIENCE AND RELATED INFORMATION
<CAPTION>
Three Months Ended
March 31,
-----------------------
2000 1999
-------- --------
(Dollars in thousands)
<S> <C> <C>
Allowance for loan losses
(beginning of period) $ 8,315 $ 6,442
Loans charged off:
Commercial, financial, agricultural,
municipal and industrial development (19) (132)
Real estate - construction - -
Real estate - mortgage
One- to four-family residential (10) (69)
Multi-family and commercial - -
Consumer and other (6) (39)
-------- --------
Total loans charged off (35) (240)
-------- --------
Recoveries of loans previously charged off:
Commercial, financial, agricultural,
municipal and industrial development 7 -
Real estate - construction - -
Real estate - mortgage
One- to four-family residential - 1
Multi-family and commercial - -
Consumer and other 5 2
-------- --------
Total recoveries 12 3
-------- --------
Net loans charged off (23) (237)
-------- --------
Provision for loan losses 715 562
-------- --------
Allowance for loan losses (end of period) $ 9,007 $ 6,767
======== ========
Loans outstanding:
Average $642,405 $507,830
End of period 665,822 520,305
Ratios:
Net charge-offs to average loans outstanding 0.01% 0.05%
Net charge-offs to provision for loan losses 3.36 42.35
Provision for loan losses to average loans outstanding 0.11 0.11
Allowance for loan loss to total loans outstanding 1.35 1.30
</TABLE>
17
<PAGE>
<PAGE>
Deposits. Total deposits increased $55.9 million, or 10.2%,
during the first quarter of 2000. The increase in deposits consisted
primarily of a $49.0 million increase in certificates of deposit. Much
of this growth was the result of certificate of deposit promotions
during the first quarter of 2000. Non-interest bearing deposits
increased by $11.3 million, or 21.9%, to $63.2 million at March 31,
2000. We have been successful in expanding our deposit base while
maintaining our focus on personal service. Our lending officers have
increased commercial deposits while our retail banking staff continues
efforts to increase our core deposits.
The following table summarizes deposits as of the dates indicated:
<TABLE>
DEPOSIT LIABILITY COMPOSITION
<CAPTION>
March 31, December 31, March 31,
2000 1999 1999
----------------------- ----------------------- -----------------------
Percent Percent Percent
Amount of Total Amount of Total Amount of Total
-------- -------- -------- -------- -------- --------
(Dollars in thousands)
<S> <C> <C> <C> <C> <C> <C>
Demand deposits $ 63,174 10.45% $ 51,845 9.45% $ 51,627 10.73%
NOW accounts 20,477 3.39 24,492 4.47 17,422 3.62
Money market accounts 160,022 26.48 160,701 29.30 153,350 31.88
Savings deposits 13,338 2.20 13,052 2.38 15,031 3.12
Certificates of deposit 266,104 44.03 229,700 41.88 191,740 39.86
Certificates of deposit
over $100,000 57,524 9.52 47,550 8.67 33,033 6.87
IRA certificates 23,741 3.93 21,126 3.85 18,835 3.92
-------- ------ -------- ------ -------- ------
Total deposits $604,380 100.00% $548,466 100.00% $481,038 100.00%
======== ====== ======== ====== ======== ======
</TABLE>
18
<PAGE>
<PAGE>
LIQUIDITY MANAGEMENT AND CAPITAL RESOURCES
Liquidity Management. Long-term liquidity is a function of the
core deposit base and an adequate capital base. We are committed to
growth of our core deposit base and maintenance of our capital base.
The growth of the deposit base is internally generated through product
pricing and product development. During the three months ended March
31, 2000 and the year ended December 31, 1999, both of these elements
contributed to developing and maintaining long-term liquidity. Our
capital position has been maintained through earnings retention and
raising of capital. See "- Capital Resources."
Short-term liquidity needs arise from continuous fluctuations in
the flow of funds on both sides of the balance sheet resulting from
growth and seasonal and cyclical customer demands. The securities
portfolio provides stable long-term earnings, as well as serves as a
primary source of liquidity. The designation of securities as
available-for-sale and held-to-maturity does not impact the portfolio as
a source of liquidity due to the ability to enter into repurchase
agreements using those securities.
We anticipate continued loan demand in our market area as banking
industry consolidation continues. We have utilized, and expect to
continue to utilize, Federal Home Loan Bank borrowings to fund a portion
of future loan growth. We have a $90.4 million secured credit facility
with the Federal Home Loan Bank, of which $79.7 million and $80.2
million were outstanding at March 31, 2000 and December 31, 1999,
respectively.
Average short-term borrowings increased $28.7 million during the
first quarter of 2000 while average long-term borrowings decreased $11.0
million. The net increase in borrowings reflected our strategy of
utilizing Federal Home Loan Bank borrowings to fund loan growth while
continuing to systematically build our deposit base. We anticipate
similar use of the Federal Home Loan Bank facility in the foreseeable
future.
We experienced net growth in assets of 7.6% during the first three
months of 2000, while deposits increased 10.2% during the same period.
We continue to emphasize growth in stable core deposits while utilizing
the Federal Home Loan Bank, federal funds purchased and brokered
certificates of deposit as necessary to balance liquidity and cost
effectiveness. We closely monitor our level of liquidity in view of
expected future needs.
Capital Resources. Total shareholders' equity was $47.8 million at
March 31, 2000, compared to $48.0 million at year-end 1999. The
increase in total equity as the result of earnings retention was offset
by the $1.4 million in treasury stock purchased and dividends paid of
$311,000 during the quarter. By March 31, 2000, we had repurchased a
total of 554,715 shares of our common stock at a cost of $5.6 million.
The shares repurchased included 235,715 shares in a privately negotiated
transaction and all of the 319,000 shares approved in September 1999
under the repurchase program.
Our capital requirements historically have been financed through
offerings of debt and equity securities, retained earnings and
borrowings from a commercial bank. The principal amount of our term loan
was $13.2 million as of March 31, 2000, and matures in November 2001.
Allegiant Bank also utilizes its borrowing capacity with the Federal
Home Loan Bank.
19
<PAGE>
<PAGE>
During 1999 we purchased brokered certificates of deposit in order
to fund loan growth and meet other liquidity needs. At March 31, 2000,
we had $45.0 million outstanding which matures on various dates through
May 15, 2000. We may use brokered deposits in the future as a source of
liquidity.
In August 1999, our wholly-owned subsidiary, Allegiant Capital
Trust I, a Delaware statutory business trust, issued $17.2 million of
trust preferred securities. Allegiant Capital Trust invested all the
proceeds from the sale of the trust preferred securities in our junior
subordinated debentures. We used a portion of the net proceeds of $16.2
million from the sale of the junior subordinated debentures to infuse
$8.0 million of capital into Allegiant Bank and to repay approximately
$2.5 million of corporate indebtedness consisting of $2.0 million under
a revolving line of credit and a $0.5 million principal repayment on
term debt. We are using the balance of the proceeds for general
corporate purposes, including possible future repurchase of our common
stock.
Dividends paid during the first quarter of 2000 were $0.055 per
share, an increase of 10% compared to the $0.05 per share paid in April
1999 for the first quarter of 1999. Our dividend payout ratio was 19%
in the first quarter of 2000.
We also analyze our capital and the capital position of our bank
in terms of regulatory risked-based capital guidelines. This analysis
of capital is dependent upon a number of factors, including asset
quality, earnings strength, liquidity, economic conditions and
combinations thereof. The Federal Reserve Board has issued standards
for measuring capital adequacy for bank holding companies. These
standards are designed to provide risk-responsive capital guidelines and
to incorporate a consistent framework for use by financial institutions.
Our management believes that, as of March 31, 2000, we and our
subsidiaries met all capital adequacy requirements. We will seek to
maintain a strong equity base while executing our controlled expansion
plans.
As of March 31, 2000, December 31, 1999 and March 31, 1999,
Allegiant's and Allegiant Bank's capital ratios were as follows:
<TABLE>
<CAPTION>
March 31, 2000 December 31, 1999 March 31, 1999
-------------------------- --------------------------- ---------------------------
Allegiant Allegiant Bank Allegiant Allegiant Bank Allegiant Allegiant Bank
--------- -------------- --------- -------------- --------- --------------
<S> <C> <C> <C> <C> <C> <C>
Total capital
(to risk-weighted assets) 9.92% 11.46% 10.23% 11.52% 8.49% 10.63%
Tier 1 capital
(to risk-weighted assets) 8.50 10.20 8.80 10.27 7.24 9.38
Tier 1 capital
(to average assets) 7.22 8.67 7.47 8.89 6.14 7.81
</TABLE>
20
<PAGE>
<PAGE>
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
There have been no material changes from the information provided
in our Annual Report on Form 10-K for the year ended December 31, 1999.
PART II. OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
a) Exhibits: See Exhibit Index attached hereto.
b) Reports on Form 8-K:
No reports on Form 8-K were filed during the quarter
ended March 31, 2000.
21
<PAGE>
<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. The undersigned
signs this report in his dual capacities as a duly authorized officer of
the registrant and also as the registrant's Chief Financial Officer.
ALLEGIANT BANCORP, INC. (Registrant)
May 10, 2000 By: /s/ Thomas A. Daiber
---------------------------------------
Thomas A. Daiber, Senior Vice President
and Chief Financial Officer
22
<PAGE>
<PAGE>
EXHIBIT INDEX
Exhibit No. Description
- ----------- -----------
11.1 Computation of Earnings Per Share
27 Financial Data Schedule for the three months ended March
31, 2000
23
<PAGE>
Exhibit 11.1
<TABLE>
COMPUTATION OF EARNINGS PER SHARE
<CAPTION>
Three Months Ended
March 31,
-------------------------------
2000 1999
---------- ----------
(In thousands, except share and per share data)
<S> <C> <C>
Average common shares outstanding 6,139,750 6,551,835
Average common stock equivalents of
options outstanding - based on the
treasury stock method using market price 42,190 128,650
---------- ----------
Average diluted common shares outstanding 6,181,940 6,680,485
========== ==========
Net income $ 1,635 $ 1,002
Basic earnings per common share 0.27 0.15
Diluted earnings per common share 0.26 0.15
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 9
<LEGEND>
This schedule contains information extracted from Allegiant Bancorp, Inc.'s
quarterly report on Form 10-Q for the quarter ended March 31, 2000 and is
qualified in its entirety by reference to such report.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-2000
<PERIOD-START> JAN-01-2000
<PERIOD-END> MAR-31-2000
<CASH> 16,820
<INT-BEARING-DEPOSITS> 541,206
<FED-FUNDS-SOLD> 0
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 54,748
<INVESTMENTS-CARRYING> 6,106
<INVESTMENTS-MARKET> 5,934
<LOANS> 665,822
<ALLOWANCE> 9,007
<TOTAL-ASSETS> 783,933
<DEPOSITS> 604,380
<SHORT-TERM> 84,451
<LIABILITIES-OTHER> 4,205
<LONG-TERM> 25,860
0
17,250
<COMMON> 66
<OTHER-SE> 47,721
<TOTAL-LIABILITIES-AND-EQUITY> 783,933
<INTEREST-LOAN> 14,598
<INTEREST-INVEST> 936
<INTEREST-OTHER> 35
<INTEREST-TOTAL> 15,569
<INTEREST-DEPOSIT> 6,444
<INTEREST-EXPENSE> 8,401
<INTEREST-INCOME-NET> 7,168
<LOAN-LOSSES> 715
<SECURITIES-GAINS> 36
<EXPENSE-OTHER> 4,931
<INCOME-PRETAX> 2,771
<INCOME-PRE-EXTRAORDINARY> 1,635
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,635
<EPS-BASIC> 0.266
<EPS-DILUTED> 0.264
<YIELD-ACTUAL> 8.87
<LOANS-NON> 621
<LOANS-PAST> 129
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 8,315
<CHARGE-OFFS> 35
<RECOVERIES> 11
<ALLOWANCE-CLOSE> 9,007
<ALLOWANCE-DOMESTIC> 0
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
