<PAGE>
Securities and Exchange Commission
Washington, D.C. 20549
Form 10-Q
[x] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 1999
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE
EXCHANGE ACT
For the transition period from ...........to...............
Commission file number 0-23090
----------------
Carrollton Bancorp
- --------------------------------------------------------------------------------
(Exact name of issuer as specified in its charter)
Maryland 52-1660951
- --------------------------------------------------------------------------------
(State or other jurisdiction (IRS Employer
of incorporation or organization) Identification No.)
344 North Charles Street, Suite 300, Baltimore, Maryland 21201
- --------------------------------------------------------------------------------
(Address of principal executive offices)
(410) 536-4600
- --------------------------------------------------------------------------------
(Issuer's telephone number)
................................................................................
(Former name, former address and former fiscal year, if changed since last
report)
Check whether the issuer (1) filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act during the past 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 ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDINGS DURING THE PRECEDING FIVE YEARS
Check whether the registrant filed all documents and reports required
to be filed by Section 12, 13 or 15(d) of the Exchange Act after the
distribution of securities under a plan confirmed by court. Yes ..... No .....
APPLICABLE ONLY TO CORPORATE ISSUERS
State the number shares outstanding of each of the issuer's classes of
common equity, as of the latest practicable
date: 2,818,988 common shares outstanding at July 29, 1999
---------------------------------------------------------------------------
<PAGE>
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
CONSOLIDATED BALANCE SHEETS
Carrollton Bancorp
and Subsidiary
<TABLE>
<CAPTION>
June 30, December 31,
1999 1998
------------ ------------
<S> <C> <C>
Assets (Unaudited)
Cash and due from banks $ 25,519,453 $ 32,524,320
Federal funds sold 1,836,062 22,145
Investment securities:
Available for sale 74,947,850 56,745,748
Held to maturity 7,510,715 8,386,910
(approximate market value of $7,691,532 and $8,737,125)
Loans held for sale 3,179,792 3,493,960
Loans, less allowance for loan losses of 219,464,493 204,919,155
$2,675,585 and $2,387,732
Bank premises and equipment 7,695,150 6,894,713
Deferred income taxes 108,642 --
Accrued interest receivable 2,558,055 2,060,746
Other assets 3,531,120 2,806,292
------------ ------------
$346,351,332 $317,853,989
------------ ------------
------------ ------------
Liabilities and Shareholders' Equity
Deposits
Noninterest-bearing $ 38,132,388 $ 37,817,737
Interest-bearing 205,019,810 199,161,288
------------ ------------
Total deposits 243,152,198 236,979,025
Federal funds purchased and securities
sold under agreements to repurchase 16,296,587 12,816,453
Advances from the Federal Home Loan Bank 53,000,000 35,000,000
Notes payable - U. S. Treasury 1,092,334 414,906
Accrued interest payable 272,069 235,696
Deferred income taxes -- 426,947
Other liabilities 2,023,234 1,108,434
------------ ------------
315,836,422 286,981,461
------------ ------------
Shareholders' equity
Common stock, par value $5.00 per share;
authorized 5,000,000 shares; issued
and outstanding 2,818,988 and 2,829,488 shares 14,094,940 14,147,440
Surplus 7,435,840 7,559,137
Accumulated other comprehensive income 350,428 1,201,658
Retained earnings 8,633,702 7,964,293
------------ ------------
30,514,910 30,872,528
------------ ------------
$346,351,332 $317,853,989
------------ ------------
------------ ------------
</TABLE>
Note: Balances at December 31, 1998 are derived from audited financial
statements.
- 1 -
<PAGE>
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
Carrollton Bancorp
and Subsidiary
<TABLE>
<CAPTION>
Quarter Ended June 30, Six Months Ended June 30,
1999 1998 1999 1998
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Interest income
Interest and Fees on Loans $ 4,260,270 $ 4,085,770 $ 8,285,182 $ 7,834,618
Interest and Dividends on Securities:
Taxable interest income 620,861 681,710 1,068,256 1,544,939
Nontaxable interest income 317,943 293,251 636,219 576,228
Dividends 59,891 18,308 77,337 32,630
Interest on Federal funds sold and
other interest income 53,816 50,778 107,020 101,362
----------- ----------- ----------- -----------
Total interest income 5,312,781 5,129,817 10,174,014 10,089,777
----------- ----------- ----------- -----------
Interest expense
Deposits 1,890,632 2,029,622 3,720,296 4,042,606
Other 554,891 435,643 983,405 753,255
----------- ----------- ----------- -----------
Total interest expense 2,445,523 2,465,265 4,703,701 4,795,861
----------- ----------- ----------- -----------
Net interest income 2,867,258 2,664,552 5,470,313 5,293,916
Provision for loan losses 144,900 90,000 289,800 165,000
----------- ----------- ----------- -----------
Net interest income after provision for loan losses 2,722,358 2,574,552 5,180,513 5,128,916
----------- ----------- ----------- -----------
Other operating income
Service charges on deposit accounts 328,106 320,638 670,799 646,148
Brokerage commissions 272,624 275,312 512,040 484,032
Other fees and commissions 1,767,802 1,071,979 3,242,223 1,997,043
Gains on sales of loans 0 376 249,940 2,872
Gains (losses) on security sales 35,950 195,995 77,729 284,509
----------- ----------- ----------- -----------
Total other income 2,404,482 1,864,300 4,752,731 3,414,604
----------- ----------- ----------- -----------
Other expenses
Salaries 1,296,737 1,306,549 2,743,793 2,565,705
Employee benefits 316,725 296,008 650,056 603,455
Occupancy 405,503 398,473 851,247 787,230
Furniture and equipment 369,541 304,540 719,712 569,836
Other operating expenses 2,059,337 1,559,101 3,657,983 2,848,030
----------- ----------- ----------- -----------
Total other expenses 4,447,843 3,864,671 8,622,791 7,374,256
----------- ----------- ----------- -----------
Income before income taxes 678,997 574,181 1,310,453 1,169,264
Income taxes 108,107 110,691 232,146 226,267
----------- ----------- ----------- -----------
Net income $ 570,890 $ 463,490 $ 1,078,307 $ 942,997
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
Net income per share: basic and diluted $ 0.20 $ 0.16 $ 0.38 $ 0.32
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
</TABLE>
-2-
<PAGE>
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
Carrollton Bancorp
and Subsidiary
<TABLE>
<CAPTION>
Six Months Ended June 30,
1999 1998
------------ ------------
<S> <C> <C>
Cash flows from operating activities:
Interest received $ 9,704,242 $ 10,050,585
Fees and commissions received 4,475,489 2,650,776
Interest paid (4,667,328) (4,786,901)
Origination of loans held for sale (18,730,042)
Sale of loans held for sale 19,229,922
Gain on sale of loans held for sale (249,940)
Cash paid to suppliers and employees (8,005,336) (5,575,766)
Income taxes paid (42,288) (229,153)
------------ ------------
1,714,719 2,109,541
------------ ------------
Cash Flows from investing activities:
Proceeds from maturities of securities held to maturity 870,000 3,408,368
Proceeds from sales of securities available for sale 1,794,528 8,870,037
Proceeds from maturities of securities available for sale 10,004,025 17,240,991
Purchases of securities available for sale (31,081,148) (11,259,975)
Loans made, net of principal collected (14,759,978) (26,540,823)
Purchase of loans (10,932) (4,463,087)
Purchases of premises and equipment (1,529,794) (1,433,770)
------------ ------------
(34,713,299) (14,178,259)
------------ ------------
Cash flows from financing activities
Net (decrease) increase in time deposits 5,587,546 (3,869,255)
Net (decrease) increase in other deposits 585,627 1,159,241
Net increase (decrease) in other borrowed funds 22,219,152 18,956,184
Dividends paid (408,898) (406,785)
Common stock repurchased (175,797) (162,239)
------------ ------------
27,807,630 15,677,146
------------ ------------
Net increase (decrease) in cash and cash equivalents (5,190,950) 3,608,428
Cash and cash equivalents at beginning of year 32,546,465 25,063,180
------------ ------------
Cash and cash equivalents at June 30 $ 27,355,515 $ 28,671,608
------------ ------------
------------ ------------
Reconciliation of net income to net cash provided by operating activities:
Net income $ 1,078,307 $ 942,997
Adjustments to reconcile net income to net cash provided by operating
activities:
Provision for loan losses 289,800 165,000
Depreciation and amortization 687,770 555,450
Amortization of premiums and discounts 27,537 28,239
Gain on disposal of securities (77,729) (284,509)
(Increase) decrease in
Accrued interest receivable (497,309) (67,431)
Other assets (744,831) (932,872)
Increase (decrease) in
Accrued interest payable 36,373 8,960
Income taxes payable 189,858 141,378
Other liabilities 724,943 1,552,329
------------ ------------
$ 1,714,719 $ 2,109,541
------------ ------------
------------ ------------
</TABLE>
- 3 -
<PAGE>
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
CARROLLTON BANCORP
Period ended June 30, 1999
The accompanying unaudited consolidated financial statements prepared as of and
for the quarter ended June 30, 1999 reflect all adjustments which are, in the
opinion of management, necessary to a fair statement of the results for the
interim period presented. All such adjustments are of a normal recurring nature.
The results reflected by these statements may not be indicative, however, of the
results for the year ending December 31, 1999.
Note A -- Comprehensive Income
Comprehensive income is defined as net income plus transactions and other
occurrences which are the result of nonowner changes in equity. For the Company,
nonowner equity changes are comprised of unrealized gains or losses on debt
securities that will be accumulated with net income in determining comprehensive
income. Presented below is a reconcilement of net income to comprehensive income
for the interim periods:
<TABLE>
<CAPTION>
For the six month periods ended: June 30, 1999 June 30, 1998
- -------------------------------- ------------- -------------
<S> <C> <C>
Net income $1,078,307 $ 942,997
Other comprehensive income (loss):
Unrealized holding gains during the period (1,309,091) 658,857
Less: Adjustment for security gains (77,729) (284,509)
---------- ----------
Other comprehensive income (loss), before tax (1,386,820) 373,548
Income taxes on items of comprehensive income 535,590 (144,264)
---------- ----------
Other comprehensive income (loss), after tax (851,230) 229,284
---------- ----------
Comprehensive income $ 227,077 $1,172,281
---------- ----------
---------- ----------
</TABLE>
4
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS
OF OPERATING RESULTS AND FINANCIAL CONDITION
Earnings
Summary
Carrollton Bancorp's net income for the first half of 1999 was
$1,078,000, or $.38 per share as compared to $943,000, or $.32 per share, for
the same period of 1998. Net income for the second quarter of 1998 was $571,000,
or $.20 per share, as compared to $463,000, or $.16 per share, for the second
quarter of 1998. The increase in earnings was due principally to increases in
the margin and to growth of fee income.
Net Interest Income
Net interest income increased for the Company by 3% for the first six
months of 1999 as compared to the same period of 1998 because of growth in
average loans outstanding and a reduction in funding costs. Total interest
income increased 1% for the first six months of 1999 and increased 4% for the
second quarter of 1999 as a result of growth in the loan portfolio. Total assets
grew by 6% on average for the first half of 1999 as compared to 1998, driven by
14% growth in the average loan portfolio. Average securities declined by 12% as
the Company worked to redeploy those invested dollars into loans. The tax
equivalent yield on earning assets decreased to 7.64% for the first six months
of 1999 as compared to 8.02% for 1998, and was 7.77% in the second quarter of
1999 compared to 8.05% for the same period of 1998. This decrease principally
resulted from the 75 basis point decline in the prime rate which occurred in
October and November, 1998.
Total interest expense decreased by 2% in the first half of 1999 as
compared to 1998 as a result of a lower interest rate environment. Average
interest bearing deposits increased 1% in 1999 compared to 1998, but the cost of
those funds decreased from 4.06% to 3.70%. Average borrowed funds increased by
45%, but again the cost of those funds declined from 5.30% for 1998 to 4.77% in
1999. The Company is using borrowings to fund asset growth. The rate of interest
expense to interest-bearing liabilities in total decreased to 3.88% in the first
half of 1999 as compared to 4.22% for 1998. The rate of interest expense to
interest-bearing liabilities for the second quarter of 1999 also decreased to
3.94% compared to 4.24% for the same period in 1998.
Due to compression of the interest margin, the net yield on average
earning assets decreased to 4.25% in the first half of 1999 as compared to 4.34%
for the comparable period of 1998.
Provision for Loan Losses
During the first half of 1999, the provision for loan losses was
$290,000 compared to $165,000 for the first half of 1998. The provision was made
based on a thorough evaluation of the allowance for loan losses. Nonaccrual,
restructured, and delinquent loans
5
<PAGE>
over 90 days to total loans increased to .75% at June 30, 1999 from .62% a year
earlier. This ratio increased slightly because of increased delinquencies. In
addition, growth of the loan portfolio since June, 1998 necessitated an
increased provision to maintain a ratio of allowance for loan losses to loans
that was prudent.
Non-Interest Income
For the first six months of 1999, non-interest income, excluding
securities and loan sale gains, increased 42% over the same period of 1998.
Other fees and commissions increased $1,245,000 principally due to increases in
ATM fees and merchant discount income. The growth in the number of ATMs combined
with an increase in the pricing of transactions helped boost ATM fee income.
Merchant discount income grew as a result of an increase in the number of
merchants. Service charges on deposit accounts grew modestly as the number of
accounts grew, and the Company's brokerage subsidiary increased commission
income as a result of the continued growth in the investment markets.
Security gains decreased in 1999 from 1998. During 1998, a fund manager
restructured an equity portfolio. The fund manager was hired in late 1997.
Gains on loan sales amounted to $250,000 in the first half of 1999 as
the Company continued to build a loan servicing portfolio to provide future
servicing income. The Company services loans for others totalling $12,400,000.
Non-Interest Expenses
Non-interest expenses increased 17% for the first half of 1999 over the
same period of 1998. Salaries increased by 7% over 1998 as a result of merit
increases, and includes a severance accrual for a reduction in staff. Employee
benefits costs increased principally from increases in pension and health
benefit costs. Occupancy increased principally due to the cost of leasing space
for the increased number of ATM machines deployed. Furniture and equipment costs
also increased primarily from growth in the ATM network. Other operating
expenses increased from transaction volume growth in the Electronic Banking
area, principally ATM and merchant services transactions.
Income Tax Provision
For the first six months of 1999, the effective tax rate was 17.7% as
compared to 19.3% for the same period in 1998. The effective tax rate has
declined primarily as a result of the growth of tax free income to total income
before taxes. The Company derives federal tax free income from the municipal
bond portfolio, and state tax free income from certain agency securities.
6
<PAGE>
Financial Condition
Summary
Total assets for the Company were $346.4 million at June 30, 1999 as
compared to $317.9 million at the end of 1998. Loans increased by 7% while
investment securities increased by 27%. In addition, deposits increased by 3%
and borrowed funds grew by 46% since December 31, 1998.
Investment Securities
Investment securities increased $17.3 million or 27% from December 31,
1998 to June 30, 1999. The increase resulted from a decision to accelerate
security purchases to replace a shortfall in loan production during the first
quarter. Most of the security growth came in the second quarter. In addition,
securities were purchased to help provide for liquidity needs for the Year 2000
Change as the end of the year approaches.
Loans
At June 30, 1999, total loans increased $15.5 million or 7% to $225.3
million from the end of 1998. This growth occurred on top of loan sales of $19.2
million. The Company's loan growth in 1999, before the impact of the loan sales,
has been approximately 33% in commercial portfolio loans and 67% in retail
loans. Virtually all of the growth has been real estate related, principally in
either commercial mortgages or residential mortgages. The mortgage subsidiary,
started in late 1997, is the reason for the growth in residential mortgages. The
Company has been successful in growing the commercial mortgage portfolio in a
very competitive market. The Company has not reduced its underwriting standards
in an attempt to originate commercial loans.
Allowance for Loan Losses
The allowance for loan losses increased $288,000 from December 31, 1998
and amounted to $2.7 million at June 30, 1999. The increase was the result of
provisions for loan losses in excess of net charge-offs, and is commensurate
with growth in the loan portfolio. The ratio of the allowance to total loans was
1.13% at December 31, 1998 and 1.19% at June 30, 1999. Part of the increase in
this ratio relates to the fact the Company experienced net recoveries for the
six months ended June, 1999 rather than net charge-offs. The loan portfolio
continues to hold a significant percentage of real estate collateralized loans,
amounting to 82% at June 30, 1999. The ratio of net loan losses to average loans
outstanding decreased to 0% for the first half of 1999 compared to .28% for the
year ended December 31, 1998. Charge-offs in 1998 were primarily related to
commercial loans. The ratio of nonaccrual loans, restructured loans, plus loans
delinquent more than 90 days to total loans decreased to .75% at June 30, 1999
from 1.02% at December 31, 1998. The improvement in this ratio came from a
decrease in delinquencies.
7
<PAGE>
Funding Sources
Total deposits increased by $6.2 million or 3% from the end of 1998 to
$243.2 million at June 30, 1999. Interest-bearing accounts increased by $5.9
million while non-interest bearing accounts increased by $0.3 million. The
growth in the deposit base over the last few years has caused greater
variability in deposit balances which affects comparisons between periods,
however, management does not consider this variability to be a negative trend.
Deposits for the Company continue to provide a stable source of funds to support
assets.
Other borrowings increased by $22.2 million to $70.4 million at June
30, 1999 from $48.2 million at December 31, 1998. Borrowings for federal funds
purchased and securities sold under agreements to repurchase increased to $16.3
million at June 30, 1999 from $12.8 million at the end of 1998. Borrowings from
the FHLB increased from $35.0 million at December 31, 1998 to $53.0 million at
June 30, 1999. As previously noted, the Company used more wholesale funds to
support asset growth than in past years as the growth rate of deposits has
slowed.
Capital
Shareholders' equity decreased by $358,000 or 1% for the first six
months of 1999 compared to the end of 1998. This was primarily due to the
decrease of $851,000 in accumulated other comprehensive income for the six month
period as interest rate increases caused a drop in the market value of
investment securities classified as available for sale. Net income for the first
half of 1999 was $1,078,000, and dividends paid were $409,000. The Company also
reacquired shares on the open market totalling $176,000. Shareholders' equity
amounted to 8.8% of total assets at June 30, 1999 compared to 9.7% at December
31, 1998. Tier 1 (Core) and Tier 2 (Total) capital to risk-adjusted assets
ratios were 13.5% and 14.9%, respectively. Although the risked-based capital
ratios were below levels at December 31, 1998 because of asset growth, they
still far exceeded regulatory minimums. The Company's leverage ratio was 8.9% at
June 30, 1999 and 9.4% at year end 1998.
Liquidity
As of June 30, 1999, outstanding loan commitments and unused lines of
credit for the Company totalled $91.8 million. Management places a high
probability for required funding within 1 year on approximately $24.0 million of
this total. The remaining amount is mainly unused home equity lines and credit
card lines on which management places a low probability for required funding. At
June 30, 1999, the Company's liquidity position continues to be adequate. The
Company also had additional borrowing capacity of approximately $30 million at
June 30, 1999.
The Company is currently completing its plans for satisfying liquidity
requirements for the Year 2000 millennium change, and these actions may reduce
liquidity temporarily near the end of 1999.
8
<PAGE>
Interest Rate Risk
The level of income of a financial institution can be affected by the
repricing characteristics of its assets and liabilities due to changes in
interest rates. The Company's liability sensitive position at June 30, 1999 as
measured by the level of rate sensitive assets to rate sensitive liabilities was
slightly more liability sensitive than at December 31, 1998 due to growth in
residential mortgages. In theory, a liability sensitive position is favorable in
a falling interest rate environment since more liabilities than assets will
reprice in a given time frame as interest rates fall. Because of interest rate
declines in assets that could not be totally passed through as reductions in
deposit costs, and due to the greater use of wholesale funds to support asset
growth, the margin slipped from previous levels. Management continually seeks
methods to reduce its exposure to interest rate shifts.
The Year 2000 Issue
The following information is provided as a "Year 2000 Readiness
Disclosure" in compliance with the Year 2000 Information and Readiness
Disclosure Act of 1998. It should be read in conjunction with the information
under "The Year 2000 Issue" contained in the 1998 Annual Report to Shareholders.
The Year 2000 issue relates to computer programs which use only two
digits to identify a year in the date field. Unless corrected, these programs
could read the year 2000 as the year 1900, and likely would adversely affect any
number of calculations that are made using that date field. For financial
institutions, this may affect interest calculations on loans and deposits, due
dates for loans and maturity dates for deposits. Additional issues surrounding
the millennium change relate to liquidity, security, and earnings.
As of June 30, 1999, the Company is on target with the timetable as
described in the 1998 Annual Report to Shareholders. All critical systems have
been tested and determined to be Year 2000 compliant. The Company has completed
documentation of the business resumption and contingency plan, and management
has moved to implement its requirements. Complete readiness under the business
resumption and contingency plan is expected by September 30, 1999. The Company
has also continued to promote a customer and associate awareness program to
provide information about the Company's readiness for the millennium change.
The Company continues to expect that the worst possible scenario that
may occur will be imposed by an outside source. In that event, the Company's
business resumption and contingency plan addresses telecommunications and power
issues such that each location would have access to all customer information to
be able to provide customer service after the millennium date change. This is
intended to provide a short term solution to potential operating problems. In
addition, backup processing systems and procedures have been developed as part
of the plan. Plans addressing concerns over liquidity, security and insurance
coverage have also been developed and implemented.
Total cost estimates of addressing all Year 2000 issues and concerns
remain as stated in the 1998 Annual Report to Shareholders.
9
<PAGE>
PART II--OTHER INFORMATION
Item 1. Legal Proceedings
There is no information to be reported under this item for the quarter ended
June 30, 1999.
Item 2. Changes in Securities
There is no information to be reported under this item for the quarter ended
June 30, 1999.
Item 3. Defaults Upon Senior Securities
There is no information to be reported under this item for the quarter ended
June 30, 1999.
Item 4. Submission of Matters to a Vote of Security Holders
There is no information to be reported under this item for the quarter ended
June 30, 1999.
Item 5. Other Information
There is no information to be reported under this item for the quarter ended
June 30, 1999.
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibit 11- Statement re: Computation of per share
earnings
(b) There have been no Reports on Form 8-K filed by the
Company during the quarter for which this report is
filed.
10
<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.
Carrollton Bancorp
------------------
(Registrant)
Date 8/9/99 /s/ Dallas R. Arthur
----------------------- --------------------
Dallas R. Arthur
President and Chief Executive
Officer
Date 8/9/99 /s/ David L. Costello III
----------------------- -------------------------
David L. Costello III
Treasurer and Chief Financial
Officer
11
<PAGE>
EXHIBIT INDEX
<TABLE>
<CAPTION>
Sequentially
Exhibit Numbered
Number Description Page
- ------ ----------- ----
<S> <C> <C>
11 Statement Re: Computation of
Per Share Earnings 14
27 Financial Data Schedule 15
</TABLE>
12
<PAGE>
EXHIBIT 11- Statement Re: Computation of Per Share Earnings
CARROLLTON BANCORP
<TABLE>
<CAPTION>
Quarter Ended Six Months Ended
June 30 June 30
----------------------- ------------------------
1999 1998 1999 1998
--------- --------- --------- ----------
<S> <C> <C> <C> <C>
Average Shares Outstanding:
Basic 2,818,988 2,903,995 2,822,304 2,905,936
--------- --------- ---------- ----------
--------- --------- ---------- ----------
Diluted 2,820,538 2,903,995 2,823,189 2,905,936
--------- --------- ---------- ----------
--------- --------- ---------- ----------
Net income $ 570,890 $ 463,490 $1,078,307 $ 942,997
Divide by average
shares outstanding
2,818,988 2,903,995 2,822,304 2,905,936
--------- --------- ---------- ---------
Net income per
share: basic $ 0.20 $ 0.16 $ 0.38 $ 0.32
--------- --------- ---------- ---------
--------- --------- ---------- ---------
Net income $ 570,890 $ 463,490 $1,078,307 $ 942,997
Divide by average
shares outstanding
2,820,538 2,903,995 2,823,189 2,905,936
--------- --------- ---------- ---------
Net income per
share: diluted $ 0.20 $ 0.16 $ 0.38 $ 0.32
--------- --------- ---------- ---------
--------- --------- ---------- ---------
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 9
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-START> JAN-01-1999
<PERIOD-END> JUN-30-1999
<CASH> 25,519,453
<INT-BEARING-DEPOSITS> 0
<FED-FUNDS-SOLD> 1,836,062
<TRADING-ASSETS> 3,179,792
<INVESTMENTS-HELD-FOR-SALE> 74,947,850
<INVESTMENTS-CARRYING> 7,510,715
<INVESTMENTS-MARKET> 7,691,532
<LOANS> 222,140,078
<ALLOWANCE> 2,675,585
<TOTAL-ASSETS> 346,351,332
<DEPOSITS> 243,152,198
<SHORT-TERM> 70,388,921
<LIABILITIES-OTHER> 2,295,303
<LONG-TERM> 0
0
0
<COMMON> 14,094,940
<OTHER-SE> 16,419,970
<TOTAL-LIABILITIES-AND-EQUITY> 346,351,332
<INTEREST-LOAN> 8,285,182
<INTEREST-INVEST> 1,781,812
<INTEREST-OTHER> 107,020
<INTEREST-TOTAL> 10,174,014
<INTEREST-DEPOSIT> 3,720,296
<INTEREST-EXPENSE> 4,703,701
<INTEREST-INCOME-NET> 5,470,313
<LOAN-LOSSES> 289,800
<SECURITIES-GAINS> 77,729
<EXPENSE-OTHER> 8,622,791
<INCOME-PRETAX> 1,310,453
<INCOME-PRE-EXTRAORDINARY> 1,310,453
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,078,307
<EPS-BASIC> 0.38
<EPS-DILUTED> 0.38
<YIELD-ACTUAL> 4.25
<LOANS-NON> 68,472
<LOANS-PAST> 1,129,102
<LOANS-TROUBLED> 482,368
<LOANS-PROBLEM> 714,925
<ALLOWANCE-OPEN> 2,387,732
<CHARGE-OFFS> 100,969
<RECOVERIES> 99,021
<ALLOWANCE-CLOSE> 2,675,585
<ALLOWANCE-DOMESTIC> 2,675,585
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 752,645
</TABLE>
