FORM 10-Q
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934.
For the quarterly period ended: March 31, 1997
--------------
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934.
For the transition period from _______ to ________
Commission File Number 0-18832
-------
First Federal Financial Corporation of Kentucky
-----------------------------------------------
(Exact Name of Registrant as specified in its charter)
Kentucky 61-1168311
-------- ----------
(State or other jurisdiction (IRS Employer Identification No.)
of incorporation or organization)
2323 Ring Road
Elizabethtown, Kentucky 42701
-----------------------------
(Address of principal executive offices)
(Zip Code)
(502)765-2131
-------------
(Registrants'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.
Yes X No
---
APPLICABLE ONLY TO CORPORATE ISSUERS:
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date.
Class Outstanding as of April 30, 1997
----------- ----------------------------------
Common Stock 4,160,353 shares
This document is comprised of 12 pages.
<PAGE>
FIRST FEDERAL FINANCIAL CORPORATION OF KENTUCKY
INDEX
PART I - Financial Information Page Number
Item 1 - Financial Statements
Consolidated Statements of Financial Condition as
of March 31, 1997 (Unaudited) and June 30, 1996. 3
Consolidated Statements of Income for the Three Months
and Nine Months Ended March 31, 1997 and 1996
(Unaudited). 4
Consolidated Statements of Cash Flows for the Nine
Months Ended March 31, 1997 and 1996 (Unaudited) 5
Notes to Consolidated Financial Statements. 6
Item 2 - Management's Discussion and Analysis of the
Consolidated Statements of Financial Condition
and Results of Operations. 7
PART II - Other Information 11
SIGNATURES 12
<PAGE>
<TABLE>
<CAPTION>
FIRST FEDERAL FINANCIAL CORPORATION OF KENTUCKY
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
March 31,
June 30,
ASSETS 1997
1996
------ ----
----
(unaudited)
<S> <C> <C>
Cash ..................................................... $ 7,378,637 $
8,407,735
Interest bearing deposits ................................ 3,043,979
7,752,537
Securities:
Securities held-to-maturity ......................... 17,731,927
11,993,796
Securities available-for-sale ....................... 4,858,628
4,748,417
(Total securities fair value: $22,832,982 at
March 31, 1997: $17,086,603 at June 30, 1996)
Loans receivable, net .................................... 321,834,790
302,363,297
Real estate owned:
Acquired through foreclosure ......................... 421,560
375,392
Held for development ................................. 687,261
505,261
Investment in Federal Home Loan Bank Stock ............... 2,727,900
2,589,900
Premises and equipment ................................... 9,996,636
9,684,167
Other assets ............................................. 533,794
986,260
Excess of cost over net assets of affiliate purchased .... 3,084,499
3,264,553
------------
- ------------
Total Assets ....................................... $372,299,611
$352,671,315
============
============
LIABILITIES & STOCKHOLDERS' EQUITY
Liabilities:
Savings deposits ........................................ $277,194,945
$264,945,744
Advances from Federal Home Loan Bank .................... 41,698,468
34,979,079
Accrued interest payable ................................ 682,885
218,284
Accounts payable and other liabilities .................. 1,133,805
1,099,293
Deferred income taxes ................................... 949,805
1,482,470
------------
- ------------
Total Liabilities .................................. 321,659,908
302,724,870
------------
- ------------
Stockholders' Equity:
Serial preferred stock 5,000,000 shares authorized
and unissued ..................................... --
--
Common stock, $1 par value per share; authorized
10,000,000 shares; issued and outstanding 4,165,353
shares on March 31, 1997 and 4,208,490 shares
on June 30, 1996 .................................. 4,165,353
4,208,490
Additional paid-in capital .............................. 4,527,735
5,466,700
Retained earnings - substantially restricted ............ 41,214,404
39,509,189
Net unrealized holding gain on securities available-
for-sale, net of tax ................................. 732,211
762,066
------------
- ------------
Total Stockholders' Equity ........................ 50,639,703
49,946,445
------------
- ------------
Total Liabilities & Stockholders' Equity .......... $372,299,611
$352,671,315
============
============
See notes to consolidated financial statements.
</TABLE>
3
<PAGE>
<TABLE>
<CAPTION>
FIRST FEDERAL FINANCIAL CORPORATION OF KENTUCKY
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
Three Months Ended
Nine Months Ended
March 31,
March 31,
1997 1996
1997 1996
---- ----
- ---- ----
<S> <C> <C> <C>
<C>
Interest income:
Interest on loans ....................... $ 6,787,507 $ 6,384,776
$19,979,343 $18,746,271
Interest and dividends on
investments and deposits ............. 462,123 438,896
1,355,919 1,331,316
----------- -----------
- ----------- -----------
Total interest income ................ 7,249,629 6,823,672
21,335,262 20,077,586
----------- -----------
- ----------- -----------
Interest expense:
Savings deposits ........................ 2,981,606 2,960,758
8,945,270 8,952,216
Federal Home Loan Bank advances ......... 613,145 490,107
1,714,977 1,311,777
----------- -----------
- ----------- -----------
Total interest expense ............... 3,594,751 3,450,865
10,660,247 10,263,993
----------- -----------
- ----------- -----------
Net interest income ..................... 3,654,878 3,372,807
10,675,015 9,813,593
Provision for loan losses ............... 0 0
200,000 0
----------- -----------
- ----------- -----------
Net interest income after
provision for loan losses ........ 3,654,878 3,372,807
10,475,015 9,813 593
----------- -----------
- ----------- -----------
Other income:
Customer service fees on deposit accounts 315,657 249,902
926,733 767,958
Other income ............................ 250,194 181,564
680,358 610,291
Gain on sale of investment .............. 0 211,355
316,927 754,409
----------- -----------
- ----------- -----------
Total other income .................. 565,851 642,821
1,924,018 2,132,658
----------- -----------
- ----------- -----------
Other expense:
Employee compensation and benefits ...... 898,713 835,041
2,642,839 2,419,435
Office occupancy and equipment expense .. 241,089 197,800
683,374 615,261
Federal insurance premiums (Note 2) ..... 43,144 146,548
1,970,572 439,529
Marketing and advertising ............... 71,316 102,866
273,020 274,269
Outside services and data processing .... 143,065 167,284
454,572 456,519
State franchise tax ..................... 74,039 70,794
218,826 209,120
Other expense ........................... 401,239 372,314
1,270,622 1,155,494
----------- -----------
- ----------- -----------
Total other expense ................. 1,872,605 1,892,647
7,513,825 5,569,627
----------- -----------
- ----------- -----------
Income before taxes ........................ 2,348,124 2,122,981
4,885,208 6,376,624
Income taxes ............................... 819,261 728,685
1,684,378 2,171,024
----------- -----------
- ----------- -----------
Net Income ................................. $ 1,528,863 $ 1,394,296 $
3,200,829 $ 4,205,600
=========== ===========
=========== ===========
Net income per share of common stock ....... $ 0.37 $ 0.33
$ 0.77 $ 0.99
======= =======
======= =======
Dividends per share of common stock ........ $ 0.13 $ 0.12
$ 0.37 $ 0.34
======= =======
======= =======
</TABLE>
See notes to consolidated financial statements.
4
<PAGE>
<TABLE>
<CAPTION>
FIRST FEDERAL FINANCIAL CORPORATION OF KENTUCKY
CONSOLIDATED STATEMENTS OF CASH FLOW
(Unaudited)
Nine
Months Ended
March
31,
1997
1996
<S> <C>
<C>
----
----
Operating Activities:
Net income ............................................... $ 3,200,829
$ 4,205,600
Adjustments to reconcile net income to
net cash provided by operating activities:
Provision for loan losses .............................. 200,000
--
Provision for depreciation ............................. 406,238
344,088
Net change in deferred loan fees and costs ............. 126,629
120,300
Federal Home Loan Bank stock dividends ................. (138,000)
(129,400)
Amortization of discounts on securities held-to-maturity (115,812)
(93,789)
Amortization of acquired intangible assets ............. 180,054
180,054
Gain on sale of investments available-for-sale ......... (316,927)
(754,409)
Increase (Decrease) in interest payable ................ 464,601
(46,831)
Decrease in other assets ............................... 452,466
259,524
(Decrease) Increase in accounts payable and other
liabilities ......................................... (498,153)
406,184
------------
- ------------
Net cash provided by operating activities ................. 3,961,925
4,055,886
------------
- ------------
Investing Activities:
Sale of securities available-for-sale .................... 335,111
793,308
Purchases of securities available-for-sale ............... (151,567)
(147,202)
Purchases of securities held-to-maturity ................. (6,000,000)
--
Maturity of securities held-to-maturity .................. --
1,000,000
Principal collections on securities held-to-maturity ..... 377,681
317,448
Net increase in loans to customers ....................... (20,267,731)
(19,453,579)
Purchases of premises and equipment ...................... (718,707)
(152,476)
Sales of real estate acquired in settlement of loans ..... 483,063
75,000
Increase in real estate held for development ............. (182,000)
(4,357)
------------
- ------------
Net cash used in investing activities ...................... (26,124,150)
(17,571,858)
------------
- ------------
Financing Activities:
Advances from Federal Home Loan Bank, net of repayments .. 6,719,389
13,768,573
Net increase in customer savings deposits ................ 12,249,201
3,962,076
Dividends paid ........................................... (1,547,234)
(1,437,887)
Proceeds from stock options exercised .................... 60,543
69,426
Common stock repurchased ................................. (1,042,645)
(588,617)
Advance to ESOP .......................................... (14,685)
--
Collection on advance to ESOP ............................ --
163,667
------------
- ------------
Net cash provided by financing activities .................. 16,424,569
15,937,275
------------
- ------------
Increase (Decrease) in cash and cash equivalents ........... (5,737,656)
2,421,303
Cash and cash equivalents, beginning of year ............... 16,160,272
13,864,501
------------
- ------------
Cash and cash equivalents, end of period ................... $ 10,422,616
$ 16,285,804
============
============
See notes to consolidated financial statements.
</TABLE>
5
<PAGE>
FIRST FEDERAL FINANCIAL CORPORATION OF KENTUCKY
Notes to Consolidated Financial Statements
1. Interim Financial Statements
First Federal Financial Corporation of Kentucky ("Corporation") is the
parent to its wholly owned subsidiary, First Federal Savings Bank of
Elizabeth town ("Bank"). The Corporation has no material income, other
than that generated by the Bank.
In the opinion of management, these unaudited consolidated financial
statements include all adjustments necessary for a fair presentation of
its financial position as of March 31, 1997 and the results of its
operations and its cash flows for the three month and nine month
periods then ended. All such adjustments were of a normal recurring
nature.
The results of operations for the three month and nine month periods
ended March 31, 1997 and 1996 are not necessarily indicative of the
results for the full years.
It is suggested that these financial statements be read in conjunction
with the financial statements, accounting policies and financial notes
thereto included in the Appendix to the Company's 1996 Proxy Statement
which has been previously filed with the Commission.
2. Federal Deposit Insurance Corporation (FDIC) legislation was signed
into law on September 30, 1996, to recapitalize the Savings Association
Insurance Fund (SAIF). All SAIF-insured savings institutions were
required to pay a one-time special assessment of $.657 for every $100
of customer deposits. This has resulted in a charge to earnings of
$1,658,000 ($1,094,000, net of tax) during the Bank's first quarter
ended September 30, 1996.
3. Net income per share of common stock is computed by dividing net income
by the weighted average number of shares on common stock issued and
outstanding: 4,171,424 shares and 4,217,393 shares issued and out-
standing for the three month periods ended March 31, 1997 and 1996
respectively, and 4,187,806 shares and 4,229,298 shares issued and
outstanding for the nine month periods ended March 31, 1997 and 1996
respectively. Common stock equivalents have not been used in computing
net income per share because their effect is not material. Net income
and dividends paid per share reflect a 2-for-1 common stock split in
the form of a 100% stock dividend distrubuted on June 10, 1996.
6
<PAGE>
MANAGEMENT DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
First Federal Financial Corporation of Kentucky ("Corporation") is the parent to
its wholly owned subsidiary, First Federal Savings Bank of Elizabethtown
("Bank"). The Bank has operations in the central Kentucky communities of
Elizabethtown, Radcliff, Bardstown, Munfordville, Shepherdsville, and
Mt.Washington.
The following discussion and analysis covers any material changes in the
financial condition since June 30, 1996 and any material changes in the results
of operations for the three month and nine month periods ending, March 31, 1997.
This discussion and analysis should be read in conjunction with "Managements
Discussion and Analysis of Financial Condition and Results of Operations"
included in the 1996 Annual Report to Shareholders.
Results of Operations
Three Month Period Ended March 31, 1997 vs. 1996 - Net income was $1,528,863 or
$.37 per share for the three month period ended March 31, 1997 as compared to
$1,394,296 or $.33 per share for the same period in 1996. In addition to the
higher net income, the 12% increase in net income per share was also
attributable to the Corporation's stock repurchase plans which have reduced the
weighted average number of shares outstanding from 4,217,393 for the 1996 period
to 4,171,424 for the 1997 period. The following discussion outlines the material
differences in income and expenses for the three month period ended March 31,
1997, as compared to 1996.
Net interest income increased by $282,071 in 1997 as compared to 1996. This
increase was due to the strong growth of the Bank's loan portfolio and a 12
basis point improvement in the net interest margin. The Bank's net interest
margin for the 1997 period increased to 4.14% as compared to 4.02% for the 1996
quarter. The Corporation's cost of funds decreased by 9 basis points in 1997
compared to 1996, due to customer's transferring deposits from long-term
maturities to short-term.
Average interest-earning assets increased by $21 million from $327 million for
the 1996 period to $348 million for the 1997 period. Average loans were $20
million higher and averaged $320 million during 1997, while the average yield on
loans increased by 6 basis points to 8.60%.
Average interest-bearing liabilities increased by $22 million to an average
balance of $316 million for the 1997 period. Customer deposits averaged $272
million during 1997, an increase of $12 million compared to the 1996 quarter.
The remaining $10 million increase in interest-bearing liabilities was due to
borrowings from Federal Home Loan Bank to help finance the Bank's loan growth.
Total other income was $565,851 for the three months ended March 31, 1997, as
compared to $642,821 for the 1996 period, a decrease of $76,970. The decrease in
income is attributable to the fact that no sales of available-for-sale
securities took place during the 1997 period compared to the 1996 period which
reported gains of $211,355. Customer service fees on deposit accounts increased
by $65,755 due to a growth in customer checking accounts and an increase in
customer service fees.
Total other expense was $1,872,605 for the three month period ended March 31,
1997, as compared to $1,892,647 for the 1996 period, a decrease of $20,042. The
decrease in expense is due to the resolution of the FDIC insurance fund
disparity on September 30, 1996, resulting in a $103,404 lower premium for this
quarter versus the 1996 quarter. Costs attributable to the new branch office in
the Elizabethtown Wal-Mart Supercenter which became operational in July 1996,
were approximately $80,000 for the 1997 quarter. Marketing expense was $31,550
lower this quarter versus the 1996 period due to the reduction in promotional
items and radio advertisements.
Nine Month Period Ended March 31, 1997 vs. 1996 - Net income was $3,200,829 or
$0.77 per share for the nine month period ended March 31, 1997, as compared to
$4,205,600 or $0.66 per share for the same period in 1996. Earnings were
affected by a one-time FDIC special assessment of $1.7 million ($1.1 million,
7
<PAGE>
(net of tax) to recapitalize the Savings Association Insurance Fund ("SAIF") and
a $200,000 addition to provision for loan losses. See further discussion under
"Regulatory Matters".
Net interest income increased by $861,422 in 1997 as compared to 1996 due to the
Bank's strong loan growth and a 8 basis point improvement in the net interest
margin. Average interest-earning assets increased by $20 million during the nine
months ended March 31, 1997 compared to the 1996 period as average loans grew by
$22 million. Average interest-bearing liabilities increased by $21 million to an
average balance of $309 million for the 1997 period, while the average cost of
funds decreased by 13 basis points during the comparative periods due to
customer's transferring deposits from long-term maturities to short-term.
Total other income was $1,824,018 for the nine months ended March 31, 1997, as
compared to $2,132,658 for the 1996 period, a decrease of $308,640. Gains from
investment sales were $316,927 for the nine months ended March 31, 1997 as
compared to $754,409 reported in the 1996 nine month period. Customer service
fees on deposit accounts increased by $158,775 during the 1997 period due to a
growth in customer checking accounts and an increase in customer service fees.
Total other expense was $7,513,825 for the nine months ended March 31, 1997, as
compared to $5,569,627 for the 1996 period, an increase of $1,944,198. The
increase is a result of the SAIF special assessment recorded in the first
quarter of 1997, resulting in a $1,685,000 charge against earnings. Costs
attributable to the new branch in the Elizabethtown Wal-mart Supercenter were
approximately $200,000 during the nine month period ended March 31, 1997. All
other expenses increased approximately 5% for the 1997 period as compared to the
same period in 1996, primarily from expanded services and products offered to
customers and to accommodate loan growth.
Non-Performing Assets
Management periodically evaluates the adequacy of the allowance for loan losses
based on the Bank's past loan loss experience, known and inherent risks in the
portfolio, adverse situations that may effect the borrower's ability to repay
and other factors. During the nine month period ended March 31, 1997, management
chose to add $200,000 to the reserve for loan loss. Although current loan
charge-offs and delinquencies are consistent with previous years, the reserve
was increased to compensate for the Bank's continued strong loan growth. The
Bank experienced an insignificant amount of uncollectible loans during the
periods indicated in the table below. Approximately 55% of the Bank's delinquent
loans are secured by one-to-four family residences at March 31, 1997.
Three Months Ended Nine Months Ended
March 31, March 31,
---------- ----------
1997 1996 1997 1996
------ ------ ------ ------
(Dollars in thousands)
Allowance for loan losses:
Balance, beginning of period $ 1,772 $ 1,642 $ 1,613 $ 1,662
Provision for loan losses -- -- 200 --
Charge-offs (43) (23) (86) (44)
Recoveries 1 1 3 2
--- --- --- ---
Balance, end of period $ 1,730 $ 1,620 $ 1,730 $ 1,620
======= ======= ======= =======
8
<PAGE>
Net loans outstanding at quarter end $321,835 $302,155
Non-performing loans at quarter end:
Collaterized by one-to-four family
homes $878 $625
Other non-performing loans $294 $441
Ratios:
Non performing loans to total loans .36% .35%
Allowance for loan losses to non-
performing loans 148% 152%
Allowance for loan losses to net loans .54% .54%
Non-performing assets to total assets .43% .38%
LIQUIDITY & CAPITAL RESOURCES
- -----------------------------
Loan demand continued to be strong during the nine months ended March 31, 1997,
as net loans grew by $19.4 million to $321.8 million, an 8.5% annualized growth
rate. Deposits increased by $12.3 million, or 4.6% during the nine month period,
primarily in customer accounts with maturity terms under two years. The loan
growth was funded by additional borrowings of $6.7 million from the Federal Home
Loan Bank.
Current regulations require the Corporation's subsidiary, First Federal Savings
Bank, to maintain minimum specific levels of liquid assets, (currently 5%) of
cash and eligible investments to the savings deposits and short-term borrowings.
At March 31, 1997, the Bank's liquid assets were 8.01% of its liquidity base.
The Bank intends to continue to fund loan growth (outstanding loan commitments
were $5.0 million at March 31, 1997) and any declines in customer deposits
through additional advances from the FHLB. At March 31, 1997, the Bank has an
unused approved line of credit in the amount of $8.6 million, and the potential
to significantly increase its indebtedness with the FHLB, if necessary, due to
the Bank's strong financial condition.
The Office of Thrift Supervision's capital regulations require the Bank to meet
three capital standards. As indicated below, the Bank substantially exceeded the
regulatory requirements for each category at March 31, 1997.
(Dollars in thousands)
Tangible Core Risk-weighted
-------- ---- -------------
Actual capital $ 44,363 $ 44,363 $ 46,094
Regulatory requirement 5,516 11,032 18,780
-------- --------- ---------
Excess $ 38,847 $ 33,331 $ 27,314
======== ========= =========
REGULATORY MATTERS
- ------------------
The Bank insures its customers' deposits through the Savings Association
Insurance Fund ("SAIF"). On September 30, 1996, Federal Deposit Insurance
Corporation ("FDIC") legislation was signed into law to recapitalize the SAIF.
As was anticipated, all SAIF-insured savings institutions were required to pay a
one-time special assessment of $.657 for every $100 of customer deposits. This
has resulted in a charge to earnings of $1,095,000, net of tax during the
quarter ended September 30, 1996. On January 1, 1997, the Bank began paying
insurance premiums of $.064 per $100 of deposits as compared to a previous
premium of $.23 per $100 of deposits. The reduced premium will contribute
9
<PAGE>
approximately $285,000, net of tax to future annual earnings.
Recent legislation will require the Bank to change its method of computing bad
debt deductions for income tax purposes, effective July 1, 1996. Formerly, the
Bank was permitted a bad debt deduction in the amount of 8% pre-tax income. The
annual deductions created a bad debt reserve for income tax purposes. Conversion
from a thrift charter to a commercial bank charter would have triggered the
recapture of the reserve, resulting in approximately $4 million of income taxes.
The new law has eliminated this income tax cost upon conversion to a commercial
bank charter. Although recapture of the post-1987 reserve will occur, the Bank
has previously deferred the related tax consequences and therefore will have no
material effect on future earnings of the Bank.
10
<PAGE>
FIRST FEDERAL FINANCIAL CORPORATION OF KENTUCKY
Part II. Other Information
Item 1. Legal Proceedings
Not Applicable
Item 2. Changes in Securities
Not Applicable
Item 3. Defaults Upon Senior Securities
Not Applicable
Item 4. Submission of Matters to a Vote of
Security Holders
Not Applicable
Item 5. Other Information
Not Applicable
Item 6. Exhibits: Not Applicable
Reports on Form 8-K:
Not Applicable
11
<PAGE>
FIRST FEDERAL FINANCIAL CORPORATION OF KENTUCKY
Pursuant to the requirements of Section 13 or 15(d) 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.
DATE: May 13, 1997 BY: (S) B. Keith Johnson
----------------------
B. Keith Johnson
Executive Vice President
DATE: May 13, 1997 BY: (S) Richard L. Muse
---------------------
Richard L. Muse
Assistant Vice President,
Comptroller
12
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 9
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> JUN-30-1997
<PERIOD-START> JUL-01-1996
<PERIOD-END> MAR-31-1997
<CASH> 7,378,637
<INT-BEARING-DEPOSITS> 3,043,979
<FED-FUNDS-SOLD> 0
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 4,858,628
<INVESTMENTS-CARRYING> 17,731,927
<INVESTMENTS-MARKET> 22,832,982
<LOANS> 321,834,790
<ALLOWANCE> 1,730,000
<TOTAL-ASSETS> 372,299,611
<DEPOSITS> 277,194,945
<SHORT-TERM> 41,698,468
<LIABILITIES-OTHER> 2,766,495
<LONG-TERM> 0
0
0
<COMMON> 4,165,353
<OTHER-SE> 46,474,350
<TOTAL-LIABILITIES-AND-EQUITY> 372,299,611
<INTEREST-LOAN> 19,979,343
<INTEREST-INVEST> 1,355,919
<INTEREST-OTHER> 0
<INTEREST-TOTAL> 21,335,262
<INTEREST-DEPOSIT> 8,945,270
<INTEREST-EXPENSE> 10,660,247
<INTEREST-INCOME-NET> 10,675,015
<LOAN-LOSSES> 200,000
<SECURITIES-GAINS> 316,927
<EXPENSE-OTHER> 7,513,825
<INCOME-PRETAX> 4,885,208
<INCOME-PRE-EXTRAORDINARY> 4,885,208
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 3,200,829
<EPS-PRIMARY> 0.77
<EPS-DILUTED> 0.77
<YIELD-ACTUAL> 4.14
<LOANS-NON> 0
<LOANS-PAST> 1,172,000
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 1,690,000
<ALLOWANCE-OPEN> 1,613,000
<CHARGE-OFFS> 86,000
<RECOVERIES> 3,000
<ALLOWANCE-CLOSE> 1,730,000
<ALLOWANCE-DOMESTIC> 0
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 1,730,000
</TABLE>
