UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
FORM 10-Q
Quarterly Report Under Section 13 or 15(d) of the
Securities Exchange Act of 1934
For the Quarter ended MARCH 31, 1998
Commission file number 0-18676
COMMERCIAL NATIONAL FINANCIAL CORPORATION
(Exact name of registrant as specified in its charter)
PENNSYLVANIA 25-1623213
(State or other jurisdiction (I.R.S. Employer Identification No.)
of incorporation or organization)
900 LIGONIER STREET LATROBE, PA 15650
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (724) 539-3501
Indicate by checkmark 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 [ ]
Indicate the number of shares outstanding of each of the issuer's
classes of common stock.
CLASS OUTSTANDING AT APRIL 30, 1998
Common Stock, $2 Par Value 1,800,000 Shares
<PAGE>
INDEX
PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
Included in Part I of this report:
Page
Commercial National Financial Corporation
Consolidated Balance Sheets 3
Consolidated Statements of Income 4
Consolidated Statements of Changes in
Shareholders' Equity 5
Consolidated Statements of Cash Flows 6
Notes to Consolidated Financial Statements 7
ITEM 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations 8
PART II - OTHER INFORMATION
Other Information 14
Signatures 15
<PAGE>
<TABLE>
COMMERCIAL NATIONAL FINANCIAL CORPORATION
CONSOLIDATED BALANCE SHEETS
<CAPTION>
March 31 December 31
1998 1997
<S> <C> <C>
ASSETS
Cash and due from banks $ 7,095,862 $ 9,711,026
Interest bearing deposits with
other banks 142,159 130,937
-----------------------------
Total cash and due from banks 7,238,021 9,841,963
Federal funds sold - -
Investment securities available for sale 56,370,989 54,267,314
Investment securities held to maturity
(Market value $61,780,045 in 1998 and
$65,691,241 in 1997) 60,082,430 64,114,775
Loans (all domestic) 185,106,344 183,639,085
Less unearned income (148,348) (157,928)
Less allowance for loan losses (1,862,256) (1,882,251)
-----------------------------
Net loans 183,095,740 181,598,906
Premises and equipment 6,132,952 5,990,786
Other assets 4,079,416 3,928,212
-----------------------------
Total Assets $316,999,548 $319,741,956
=============================
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits (all domestic):
Non-interest bearing $ 35,688,572 $ 35,968,693
Interest bearing 220,903,706 224,721,064
-----------------------------
Total deposits 256,592,278 260,689,757
Short-term borrowings 13,850,000 17,850,000
Long-term borrowings 5,000,000 -
Other liabilities 2,193,481 2,757,188
-----------------------------
Total Liabilities 277,635,759 281,296,945
-----------------------------
Shareholders' equity:
Common stock, par value $2; 10,000,000
shares authorized; 1,800,000 issued
and outstanding 3,600,000 3,600,000
Retained earnings 35,424,448 34,604,120
Unrealized gain/(loss) on
available for sale - net of deferred
taxes of $174,812 in March 1998 and
$124,096 in December 1997 339,341 240,891
-----------------------------
Total Shareholders' Equity 39,363,789 38,445,011
-----------------------------
Total Liabilities and
Shareholders' Equity $316,999,548 $319,741,956
=============================
</TABLE>
The accompanying notes are an integral part of these consolidated financial
statements.
<PAGE>
<TABLE>
COMMERCIAL NATIONAL FINANCIAL CORPORATION
CONSOLIDATED STATEMENT OF INCOME
<CAPTION>
March 31 March 31
1998 1997
<S> <C> <C>
INTEREST INCOME:
Interest and fees on loans $4,196,989 $3,563,367
Interest and dividends on investments:
Taxable interest 1,256,973 1,188,984
Interest exempt from federal
income tax 470,000 372,765
Interest on federal funds sold 940 14,766
Interest on bank deposits 1,431 2,125
-----------------------
Total interest income 5,926,333 5,142,007
INTEREST EXPENSE
Interest on deposits 2,379,222 2,195,868
Interest on short-term borrowings 215,592 27,350
Interest on long-term borrowings 47,630 -
-----------------------
Total interest expense 2,642,444 2,223,218
NET INTEREST INCOME 3,283,889 2,918,789
Provision for loan losses 90,000 45,000
-----------------------
NET INTEREST INCOME AFTER
PROVISION FOR LOAN LOSSES 3,193,889 2,873,789
OTHER INCOME
Asset management and trust income 75,807 25,922
Service charges on deposit accounts 133,041 135,373
Other service charges and fees 154,080 102,411
Net Securities gains 11,271 -
Other income 84,312 78,594
-----------------------
Total other income 458,511 342,300
OTHER EXPENSES
Salaries and employee benefits 1,206,906 1,182,498
Net occupancy expense 150,888 142,471
Furniture and equipment expense 142,115 159,236
Pennsylvania shares tax 72,814 67,419
Other expense 517,349 489,358
-----------------------
Total other expenses 2,090,072 2,040,982
INCOME BEFORE TAXES 1,562,328 1,175,107
Applicable income taxes 382,000 284,000
-----------------------
NET INCOME $1,180,328 $ 891,107
=======================
Average Shares Outstanding 1,800,000 1,800,000
=======================
EARNINGS PER SHARE $ .66 $ .50
=======================
CASH DIVIDENDS DECLARED PER SHARE $ .20 $ .16
=======================
</TABLE>
The accompanying notes are an integral part of these consolidated
financial statements.
<PAGE>
COMMERCIAL NATIONAL FINANCIAL CORPORATION
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
<TABLE>
<CAPTION>
March 31 March 31
1998 1997
--------------------------------
<S> <C> <C>
Net Income $ 1,180,328 $ 891,107
Other comprehensive income, net of tax:
unrealized gain/(loss) on securities
available for sale - net of deferred
taxes of $50,716 in March 1998 and
$(86,232) in March 1997. 98,450 (167,393)
--------------------------------
$ 1,278,778 $ 723,714
================================
</TABLE>
The corporation has adopted Statement of Financial Accounting
Standards No. 130, "Reporting Comprehensive Income." This
statement establishes standards for reporting and displaying
comprehensive income and it's components in a full set of
financial statements.
<PAGE>
<TABLE>
COMMERCIAL NATIONAL FINANCIAL CORPORATION
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
<CAPTION>
Unrealized
Gain/(Loss)
on Investment
Additional Securities Total
Common Paid-in Retained Available Shareholders'
Stock Capital Earnings for Sale Equity
<S> <C> <C> <C> <C> <C>
Balance at December 31, 1996 $3,600,000 $ - $ 31,777,511 $ 10,743 $35,388,254
Net income - - 891,107 - 891,107
Cash dividends declared
($.16 per share) - - (288,000) - (288,000)
Net change in unrealized
gain/(loss) on investment
securities AFS net of taxes - - - (167,393) (167,393)
----------------------------------------------------------------------------
Balance at March 31, 1997 $3,600,000 $ - $ 32,380,618 $(156,650) $35,823,968
============================================================================
Balance at December 31, 1997 $3,600,000 $ - $ 34,604,120 $ 240,891 $38,445,011
Net income - - 1,180,328 - 1,180,328
Cash dividends declared
($.20 per share) - - (360,000) - (360,000)
Net change in unrealized
gain/(loss) on investment
securities AFS net of taxes - - - 98,450 98,450
----------------------------------------------------------------------------
Balance at March 31, 1998 $3,600,000 $ - $35,424,448 $ 339,341 $39,363,789
============================================================================
</TABLE>
The accompanying notes are an integral part of these consolidated
financial statements.
<PAGE>
<TABLE>
COMMERCIAL NATIONAL FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
<CAPTION>
For Three Months
Ended March 31
1998 1997
<S> <C> <C>
OPERATING ACTIVITIES
Net income $ 1,180,328 $ 891,107
Adjustments to reconcile net income to net
cash from operating activities:
Depreciation and amortization 144,986 156,717
Provision for loan losses 90,000 45,000
Net accretion/(amortization) of securities
and loan fees 27,176 30,682
Increase in interest receivable (126,784) (327,236)
Decrease in interest payable (197,617) (105,576)
Increase in taxes payable 147,812 72,975
Decrease in other liabilities (513,901) (497,777)
(Increase)Decrease in other assets (75,136) 29,566
Net security gains (11,271) -
--------------------------
Net cash provided by operating activities 665,593 295,458
--------------------------
INVESTING ACTIVITIES
Net(increase)decrease in deposits
with other banks (11,222) 24,622
Net decrease in fed funds sold - -
Purchase of securities AFS (2,735,950) (7,106,069)
Purchase of securities HTM (1,966,778) (3,511,793)
Maturities and calls of securities AFS 757,215 4,000,000
Maturities and calls of securities HTM 6,000,000 860,000
Net increase in loans (1,579,391) (2,415,744)
Purchase of premises and equipment (287,152) (173,703)
---------------------------
Net cash used in investing activities 176,722 (8,325,687)
---------------------------
FINANCING ACTIVITIES
Net increase(decrease)in deposits (4,097,479) 7,016,698
Net increase(decrease)in other
short-term borrowings (4,000,000) 1,100,000
Net increase in long-term borrowings 5,000,000 -
Dividends paid (360,000) (288,000)
----------------------------
Net cash provided by financing activities (3,457,479) 7,828,698
----------------------------
(2,615,164) (201,531)
Cash and cash equivalents at beginning of year 9,711,026 8,839,707
----------------------------
Cash and cash equivalents at end of quarter $ 7,095,862 $ 8,638,176
============================
Supplemental disclosures of cash flow information:
Cash paid during the year for:
Interest $ 2,840,061 $ 2,328,794
============================
Income Taxes $ 319,000 $ 200,000
============================
</TABLE>
The accompanying notes are an integral part of these consolidated
financial statements.
<PAGE>
COMMERCIAL NATIONAL FINANCIAL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
March 31, 1998
Note 1 Management Representation
------ -------------------------
The accompanying unaudited consolidated interim financial
statements have been prepared in accordance with generally
accepted accounting principles for interim financial information.
However, they do not include all information and footnotes
required by generally accepted accounting principles for complete
financial statements and should be read in conjunction with the
annual financial statements of Commercial National Financial
Corporation for the year ending December 31, 1997, including the
notes thereto. In the opinion of management, the unaudited
interim consolidated financial statements include all adjustments
(consisting of only normal recurring adjustments) necessary for a
fair statement of financial position as of March 31, 1998 and the
results of operations for the three month periods ended March 31,
1998 and 1997, and the statements of cash flows and changes in
shareholders' equity for the three month periods ended March 31,
1998 and 1997. The results of the three months ended March 31,
1998 are not necessarily indicative of the results to be expected
for the entire year.
Note 2 Allowance for Loan Losses
------ ----------------------------------
Description of changes:
1998 1997
Allowance balance January 1 $1,882,251 $2,035,818
Additions:
Provision charged to operating expenses 90,000 45,000
Recoveries on previously charged off
loans 1,968 3,242
Deductions:
Loans charged off (111,963) (65,848)
---------------------------
Allowance balance March 31 $1,862,256 $2,018,212
===========================
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS
---------------------
First Three Months of 1998 as compared to the First Three Months
of 1997
-----------------------------------------------------------------
Pre-tax net income for the first three months of 1998 was
$1,562,328 compared to $1,175,107 during the same period of 1997,
representing a 32.95% increase.
Interest income was $5,926,333, an increase of 15.25%. The loan
return rate increased twenty-two (22) basis points to 9.07% and
the securities return rate increased one (1) basis point to
5.96%. As a result, the return rate on total average earning
assets increased seventeen (17) basis points to 7.87%. Average
earning asset volume rose $34,529,095, a 12.92% increase.
Interest expense was $2,642,444, an increase of 18.86%. The cost
rate on average interest-bearing liabilities was 4.40%, a
seventeen (17) basis point increase from a year ago. Average
interest-bearing liabilities volume rose $29,639,893, an increase
of 14.09%.
Net interest income rose 12.51% to $3,283,889, and represented
4.15% of average total assets compared to 4.17% during the first
three months of 1997.
The average allowance for loan losses declined 8.06% to $1,870,335.
By comparison, total average loans grew 14.92% during the same
period. The 1998 first three months provision for loan losses
was $90,000, compared to $45,000 for the first three months of
1997, a 100% increase.
Net interest income after the application of the provision for
loan losses grew $320,100 to $3,193,889, representing a 4.04%
return on total average assets compared to 4.10% for the first
three months of 1997.
Non-interest income increased 33.95% to $458,511. Asset
management and trust fees totaled $75,807. Service charges on
deposit accounts declined 1.72% to $133,041. Other service
charges and fees rose 50.45% reaching $154,080. Other income
declined 7.28% to $84,312. Securities gains of 11,271 were
realized on called investments.
Non-interest expense reached $2,090,072, an increase of 2.41%, or
$49,090, while total average assets grew 12.93%. Personnel costs
rose 2.06%, a $24,408 increase. Net occupancy expense rose
5.91%, or $8,417. Furniture and equipment expense declined
10.75%, representing a cost decrease of $17,121. Pennsylvania
shares tax expense was $72,814, an increase of 8.00%. Other
expense rose 5.72%, an increase of $27,991.
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS (continued)
---------------------------------
First Three Months of 1998 as compared to the First Three Months
of 1997 continued
-----------------------------------------------------------------
Federal income tax on total first three months earnings was
$382,000 compared to $284,000 a year ago. Net income after taxes
increased $289,221 to $1,180,328, an increase of 32.46%. The
annualized return on average assets was 1.49% for the first three
months of 1998 compared to 1.27% for the three months ended March
31, 1997. The annualized return on average equity through March
31, 1998 was 12.14% and had been 10.01% through the first three
months of 1997.
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS (Continued)
RESULTS OF OPERATIONS (Continued)
---------------------------------
LIQUIDITY
---------
Liquidity, the measure of the corporation's ability to meet the
normal cash flow needs of depositors and borrowers in an
efficient manner, is generated primarily from the acquisition of
deposit funds and the maturity of loans and securities.
Additional liquidity can be provided by the sale of investment
securities available for sale which amounted to $53,804,337 with
net unrealized gains of $514,513 on March 31, 1998.
During the first three months of 1998, average interest-bearing
liabilities increased $29,639,893 over the same period in 1997.
Investments maturing within one year were 7.40% of total assets
on March 31, 1998 and 6.53% on March 31, 1997.
Average loans grew by $24,037,052 and the average securities
portfolio (including federal funds sold) increased $10,492,043.
INTEREST SENSITIVITY
--------------------
Interest rate management seeks to maintain a balance between
consistent income growth and the risk that is created by
variations in ability to reprice deposit and investment
categories. The effort to determine the effect of potential
interest rate changes normally involves measuring the so called
"gap" between assets (loans and securities) subject to rate
fluctuation and liabilities (interest bearing deposits) subject
to rate fluctuation as related to earning assets over different
time periods and calculating the ratio of interest sensitive
assets to interest sensitive liabilities.
Repricing periods for the loans, securities, interest bearing
deposits, non-interest bearing assets and non-interest bearing
liabilities are based on contractual maturities, were applicable,
as well as the corporation's historical experience regarding the
impact of interest rate fluctuations on the prepayment and
withdrawal patterns of certain assets and liabilities. Regular
savings, NOW and other similar interest bearing demand deposit
accounts are subject to immediate withdrawal without penalty and
therefore are presented as beginning to reprice in the earliest
period presented in the "gap" table.
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS (Continued)
RESULTS OF OPERATIONS (Continued)
---------------------------------
INTEREST SENSITIVITY (In thousands)
-----------------------------------
The following table presents this information as of March 31,
1998 and December 31, 1997:
<TABLE>
<CAPTION>
March 31, 1998
0-30 DAYS 31-90 DAYS 91-180 DAYS 181-365 DAYS 1 - 5 YEARS OVER 5 YRS
<S> <C> <C> <C> <C> <C> <C>
Interest sensitive
assets $ 49,601 $ 6,696 $ 7,385 $ 22,065 $ 122,204 $ 91,152
Interest sensitive
liabilities $ 14,279 $ 23,932 $ 26,794 $ 47,150 $ 110,324 $ 17,275
Interest sensitivity --------------------------------------------------------------------------
gap $ 35,322 $ (17,236) $ (19,409) $ (25,085) $ 11,880 $ 73,877
==========================================================================
Cumulative gap $ 18,086 $ (1,323) $ (26,408) $ (14,528) $ 59,349
Ratio of cumulative gap =============================================================
to earning assets 6.00% (0.44%) (8.75%) (4.82%) 19.67%
=============================================================
</TABLE>
<TABLE>
<CAPTION>
December 31, 1997
0-30 DAYS 31-90 DAYS 91-180 DAYS 181-365 DAYS 1 - 5 YEARS OVER 5 YRS
<S> <C> <C> <C> <C> <C> <C>
Interest sensitive
assets $ 50,363 $ 6,582 $ 11,657 $ 17,290 $ 123,613 $ 90,953
Interest sensitive
liabilities $ 19,944 $ 29,790 $ 26,938 $ 35,667 $ 112,426 $ 17,806
Interest sensitivity --------------------------------------------------------------------------
gap $ 30,419 $ (23,208) $ (15,281) $ (18,377) $ 11,187 $ 73,147
==========================================================================
Cumulative gap $ 7,211 $ (8,070) $ (26,447) $ (15,260) $ 57,887
Ratio of cumulative gap =============================================================
to earning assets 2.39% (2.67%) (8.75%) (5.05%) 19.16%
=============================================================
</TABLE>
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS (Continued)
CREDIT QUALITY RISK
- -------------------
The following table presents a comparison of loan performance as of March
31, 1998 with that of March 31, 1997. Non-accrual loans are those for
which interest income is recorded only when received and past due loans
are those which are contractually past due 90 days or more in respect to
interest or principal payments. As of March 31, 1998 the corporation had
no other real estate owned and no in-substance foreclosures.
At March 31
1998 1997
Non-performing Loans:
Loans on non-accrual basis $ - $ 23,172
Past due loans 371,859 170,468
Renegotiated loans 930,547 1,002,802
Total Non-performing Loans $ 1,302,406 $ 1,196,442
Other real estate owned - 272,919
Total non-performing assets $ 1,302,406 $ 1,469,361
Loans outstanding at end of period $184,957,996 $162,279,648
Average loans outstanding (year-to-date) $185,173,201 $161,136,149
Non-performing loans as percent of total
loans .70% .91%
Provision for loan losses $ 90,000 $ 45,000
Net charge-offs as percent of average
loans .06% .04%
Provision for loan losses as
percent of net charge-offs 81.82% 71.88%
Reserve for losses as
percent of average loans outstanding 1.01% 1.25%
CAPITAL RESOURCES
- -----------------
Shareholders' equity for the first three months of 1998 averaged $38,877,932
which represented an increase of $3,252,179 over the average capital of
$35,625,753 recorded in the same period of 1997. These capital levels
represented a capital ratio of 12.30% in 1998 and 12.71% in 1997. When the
loan loss allowance is included, the 1998 capital ratio becomes 12.90%.
The Federal Reserve Board's risk-based capital guidelines are designed
principally as a measure of credit risk. These guidelines require that:
(1) at least 50% of a banking organization's total capital be common and
certain other "core" equity capital ("Tier I Capital"); (2) assets and off-
balance sheet items must be weighted according to risk; and (3) the total
capital to risk-weighted assets ratio be at least 8.00%; and (4) a minimum
4.00% leverage ratio of Tier I capital to average total assets be
maintained. As of March 31, 1998, the corporation, under these
guidelines, had a Tier I and total equity capital to risk adjusted assets
ratio of 21 22% and 22.23% respectively. The leverage ratio was 12.35%.
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS (Continued)
CAPITAL RESOURCES (continued)
- -----------------------------
The table below presents the corporation's capital position at March 31,
1998 (Dollar amounts in thousands)
Percent
of Adjusted
Amount Assets
------ -----------
Tier I Capital $ 39,024 21.22
Tier I Capital Requirement 7,356 4.00
Total Equity Capital $ 40,887 22.23
Total Equtiy Capital Requirement 14,713 8.00
- --------------------------------------------------------------------
Leverage Capital $ 39,024 12.35
Leverage Requirement 12,638 4.00
<PAGE>
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 AND REPORTS ON FORM 8-K
Not applicable
<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.
COMMERCIAL NATIONAL FINANCIAL CORPORATION
(Registrant)
Dated: May 11, 1998 [S] Louis T. Steiner
------------------------
Louis T. Steiner
Chief Executive Officer
Dated: May 11, 1998 [S] Wendy S. Schmucker
------------------------
Wendy S. Schmucker
Secretary/Treasurer
<PAGE>
Commercial National Financial Corporation
900 Ligonier Street
Latrobe, Pennsylvania 15650
Telephone (724) 539-3501
Banking Subsidiary:
Commercial National Bank of Westmoreland County
BANKING OFFICES
Latrobe Area
900 Ligonier Street (724) 539-3501
1900 Lincoln Avenue (724) 537-9980
11 Terry Way * (724) 539-9774
Pleasant Unity
Church Street * (724) 423-5222
Ligonier
201 Main Street * (724) 238-9538
West Newton
109 East Main Street * (724) 872-5100
Greensburg Area
Georges Station Road * (724) 836-7698
19 North Main Street (724) 836-7699
Asset Management and (724) 836-7670
Trust Division
19 North Main Street
Drive-up Facility
Latrobe
Lincoln Road at
Josephine Street * (724) 537-9927
Murrysville
4785 Old William Penn Highway* (724) 733-4888
* Automatic Teller Facilities
Automatic Teller Facilities also located at
Latrobe Area Hospital, Westmoreland County Airport,
and Saint Vincent College
Touchtone Teller 24-hour banking service: Website Address:
(724)537-9977 www.cnbthebank.com
Free from Blairsville, Derry,
Greensburg, Kecksburg, Latrobe,
Ligonier and New Alexandria.
1-800-803-BANK
Free from all other locations.
<TABLE> <S> <C>
<ARTICLE> 9
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> MAR-31-1998
<CASH> 7,095,862
<INT-BEARING-DEPOSITS> 142,159
<FED-FUNDS-SOLD> 0
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 56,370,989
<INVESTMENTS-CARRYING> 60,082,430
<INVESTMENTS-MARKET> 61,780,045
<LOANS> 184,957,996
<ALLOWANCE> 1,862,256
<TOTAL-ASSETS> 316,999,548
<DEPOSITS> 256,592,278
<SHORT-TERM> 13,850,000
<LIABILITIES-OTHER> 2,193,481
<LONG-TERM> 5,000,000
0
0
<COMMON> 3,600,000
<OTHER-SE> 35,763,789
<TOTAL-LIABILITIES-AND-EQUITY> 316,999,548
<INTEREST-LOAN> 4,196,989
<INTEREST-INVEST> 1,726,973
<INTEREST-OTHER> 2,371
<INTEREST-TOTAL> 5,926,333
<INTEREST-DEPOSIT> 2,379,222
<INTEREST-EXPENSE> 2,642,444
<INTEREST-INCOME-NET> 3,283,889
<LOAN-LOSSES> 90,000
<SECURITIES-GAINS> 11,271
<EXPENSE-OTHER> 2,090,072
<INCOME-PRETAX> 1,562,328
<INCOME-PRE-EXTRAORDINARY> 1,180,328
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,180,328
<EPS-PRIMARY> $ .66
<EPS-DILUTED> $ .66
<YIELD-ACTUAL> 7.87
<LOANS-NON> 0
<LOANS-PAST> 371,859
<LOANS-TROUBLED> 930,547
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 1,882,251
<CHARGE-OFFS> 111,963
<RECOVERIES> 1,968
<ALLOWANCE-CLOSE> 1,862,256
<ALLOWANCE-DOMESTIC> 1,862,256
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
