SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 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 September 30, 1997
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Commission file number: O-18847
-------
HOME FEDERAL BANCORP
--------------------
(Exact name of registrant as specified in its charter)
Indiana 35-1807839
------- ----------
(State or other Jurisdiction (I.R.S. Employer
of Incorporation or Origination) Identification No.)
222 West Second Street, Seymour, Indiana 47274-0648
---------------------------------------- ----------
(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number including area code: (812) 522-1592
--------------
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
--- ---
Indicate the number of shares outstanding of each of the issuer's
classes of common stock, as of November 10, 1997:
Common Stock, no par value - 5,107,642 shares outstanding
<PAGE>
HOME FEDERAL BANCORP
FORM 10-Q
INDEX
Page No.
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
Consolidated Balance Sheets
(unaudited) ............................................. 3
Consolidated Statements of Income
(unaudited) ............................................. 4
Consolidated Statements of Cash Flows
(unaudited) ............................................. 5
Forward looking statement .................................. 6
Notes to Consolidated Financial
Statements .............................................. 6
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of
Operations .............................................. 8
PART II. OTHER INFORMATION
Item 3. Quantitative and Qualitative Analysis of Financial
Condition and Results of Operations .......................... 12
Item 6. Exhibits and Reports on Form 8-K ................................. 12
Signatures ................................................................ 13
2
<PAGE>
HOME FEDERAL BANCORP
CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited) September 30, June 30,
1997 1997
--------- ---------
ASSETS:
Cash .................................................. $ 15,900 $ 16,274
Interest-bearing deposits ............................. 2,775 3,498
--------- ---------
Total cash and cash equivalents ..................... 18,675 19,772
--------- ---------
Securities available for sale at fair value
(amortized cost $42,267 and $40,208) ................. 42,357 40,119
Securities held to maturity
(fair value $12,468 and $13,012) ..................... 12,501 13,115
Loans held for sale (fair value $5,586 and $4,688) .... 5,516 4,629
Loans receivable, net of allowance for
loan losses of $3,760 and $3,649 ..................... 584,720 575,624
Investments in joint ventures ......................... 3,140 3,084
Federal Home Loan Bank stock .......................... 4,810 4,260
Accrued interest receivable, net ...................... 4,491 4,272
Premises and equipment, net ........................... 8,716 8,171
Real estate owned ..................................... 438 139
Prepaid expenses and other assets ..................... 1,375 2,284
Cash surrender value of life insurance ................ 5,598 5,529
Goodwill .............................................. 1,772 1,798
--------- ---------
TOTAL ASSETS ....................................... $ 694,109 $ 682,796
========= =========
LIABILITIES AND SHAREHOLDERS' EQUITY:
Deposits .............................................. $ 525,349 $ 527,788
Advances from Federal Home Loan Bank .................. 90,945 79,945
Senior debt ........................................... 7,475 7,800
Other borrowings ...................................... 4,448 4,648
Advance payments by borrowers
for taxes and insurance .............................. 665 296
Accrued expenses and other liabilities ................ 5,147 4,402
--------- ---------
Total liabilities .................................. 634,029 624,879
--------- ---------
Shareholders' equity:
No par common stock;
Authorized:9,500,000 shares
Issued and outstanding: ............................. 7,569 7,549
5,101,692 shares at September 30, 1997
5,094,493 shares at June 30, 1997
Retained earnings, restricted ........................ 52,457 50,421
Unrealized gain (loss) on securities available
for sale, net of deferred taxes ..................... 54 (53)
--------- ---------
Total shareholders' equity ......................... 60,080 57,917
--------- ---------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY ......... $ 694,109 $ 682,796
========= =========
See notes to consolidated financial statements
3
<PAGE>
<TABLE>
<CAPTION>
HOME FEDERAL BANCORP
CONSOLIDATED STATEMENTS OF INCOME
(in thousands except per share data)
(unaudited) Three Months Ended
September 30
--------------------------
Interest income: 1997 1996
----------- -----------
<S> <C> <C>
Loans receivable .......................................... $ 12,834 $ 11,638
Securities available for sale and held to maturity ........ 851 779
Other interest income ..................................... 54 74
----------- -----------
Total interest income ...................................... 13,739 12,491
Interest expense:
Deposits .................................................. 6,184 5,699
Advances and borrowings ................................... 1,481 1,329
----------- -----------
Total interest expense ..................................... 7,665 7,028
Net interest income ........................................ 6,074 5,463
Provision for loan losses .................................. 293 167
----------- -----------
Net interest income after provision for loan losses ........ 5,781 5,296
Other income:
Gain on sale of loans ..................................... 371 387
Gain(loss) on sale of securities .......................... (14) 20
Income from joint ventures ................................ 40 97
Insurance, annuity income, other fees ..................... 415 363
Service fees on NOW accounts .............................. 446 405
Net gain (loss) on real estate owned and repossessed assets 5 3
Loan servicing income ..................................... 250 264
Miscellaneous ............................................. 432 366
----------- -----------
Total other income ......................................... 1,945 1,905
Other expenses:
Compensation and employee benefits ........................ 1,959 1,794
Occupancy and equipment ................................... 573 488
Service bureau expense .................................... 194 190
Federal insurance premium ................................. 81 3,274
Marketing ................................................. 176 129
Goodwill amortization ..................................... 25 25
Miscellaneous ............................................. 612 630
----------- -----------
Total other expenses ....................................... 3,620 6,530
Income before income taxes ................................. 4,106 671
Income tax provision ....................................... 1,645 240
----------- -----------
Net Income ................................................. $ 2,461 $ 431
Net income per common and common share equivalents ......... $ 0.46 $ 0.08
Equivalent number of shares ................................ 5,375,955 5,158,568
Dividends per share ........................................ $ 0.083 $ 0.056
</TABLE>
See notes to consolidated financial statements
4
<PAGE>
HOME FEDERAL BANCORP
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands) Three Months Ended
(unaudited) September 30,
--------------------
1997 1996
--------------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income ............................................. $ 2,461 $ 431
Adjustments to reconcile net income to net cash
provided by (used in) operating activities:
Accretion of discounts, amortization and depreciation 249 307
Provision for loan losses ........................... 293 167
Net gain from sale of loans ......................... (371) (387)
Net (gain)/loss from sale of investment securities .. 14 (20)
Net gain from joint ventures; real estate owned ..... (45) (100)
Loan fees deferred (recognized), net ................ (41) (209)
Proceeds from sale of loans held for sale ........... 28,814 21,632
Origination of loans held for sale .................. (29,330) (20,029)
Decrease in accrued interest and other assets ...... 1,102 3,355
Increase in other liabilities ....................... 1,114 2,390
-------- --------
Net cash provided by operating activities .............. 4,260 7,537
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Net principal disbursed on loans ....................... (9,168) (14,379)
Proceeds from:
Maturities/Repayments of:
Securities held to maturity ..................... 613 77
Securities available for sale ................... 1,659 3,675
Sales of:
Securities available for sale ................... 4,326 4,592
Real estate owned and other asset sales ......... 99 49
Purchases of:
Loans ............................................... (989) (236)
Securities available for sale ....................... (8,057) (5,931)
Securities held to maturity ......................... -- (3,633)
Federal Home Loan Bank stock ........................ (550) (150)
Increase in cash surrender value of life insurance ..... (69) (66)
Acquisition of property and equipment, net ............. (852) (170)
-------- --------
Net cash used in investing activities .................. (12,988) (16,172)
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Increase (decrease) in deposits, net ................... (2,439) (675)
Proceeds from borrowings ............................... 32,900 16,500
Repayment of borrowings ................................ (22,225) (13,825)
Net repayment of overnight borrowings .................. (200) (1,149)
Common stock options exercised ......................... 20 --
Payment of dividends on common stock ................... (425) (280)
-------- --------
Net cash provided by (used in) financing activities .... 7,631 571
-------- --------
NET DECREASE IN CASH AND CASH EQUIVALENTS .............. (1,097) (8,064)
Cash and cash equivalents, beginning of period ......... 19,772 25,628
-------- --------
Cash and cash equivalents, end of period ............... $ 18,675 $ 17,564
======== ========
Supplemental information:
Cash paid for interest ................................. $ 7,607 $ 6,950
Cash paid for income taxes ............................. $ 300 $ 205
Assets acquired through foreclosure .................... $ 287 $ --
See notes to consolidated financial statements
5
<PAGE>
Forward Looking Statements
This Quarterly Report on Form 10-Q ("Form 10-Q") contains statements
which constitute forward looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. These statements appear in a number of
places in this Form 10-Q and include statements regarding the intent, belief,
outlook, estimate or expectations of the Company (as defined below), its
directors or its officers primarily with respect to future events and the future
financial performance of the Company. Readers of this Form 10-Q are cautioned
that any such forward looking statements are not guarantees of future events or
performance and involve risks and uncertainties, and that actual results may
differ materially from those in the forward looking statements as a result of
various factors. The accompanying information contained in this Form 10-Q
identifies important factors that could cause such differences. These factors
include changes in interest rates, loss of deposits and loan demand to other
savings and financial institutions, substantial changes in financial markets;
changes in real estate values and the real estate market; regulatory changes, or
unanticipated results in pending legal proceedings.
Notes to Consolidated Financial Statements
1. Basis of Presentation
- -------------------------
The consolidated financial statements include the accounts of Home Federal
Bancorp (the "Company") and its wholly-owned subsidiary, Home Federal Savings
Bank (the "Bank"). These consolidated interim financial statements at September
30, 1997, and for the three month period ended September 30, 1997, have not been
examined by independent auditors, but reflect, in the opinion of the Company's
management, all adjustments (which include only normal recurring adjustments)
necessary to present fairly the financial position and results of operations for
such periods, including elimination of all significant intercompany balances and
transactions.
These statements should be read in conjunction with the consolidated financial
statements and related notes which are incorporated by reference in the
Company's Annual Report on Form 10-K for the year ended June 30, 1997.
2. Reclassifications
- ---------------------
Some items in the financial statements of previous periods have been
reclassified to conform to the current period presentation.
3. Recent Accounting Pronouncements
- -----------------------------------
In February 1997, the Financial Accounting Standards Board issued Statement of
Financial Accounting Standards 128, "Earnings per Share" (SFAS 128). SFAS 128
establishes new standards for computing and presenting earnings per share
("EPS"). Specifically, SFAS 128 replaces the presentation of primary EPS with a
presentation of basic EPS, requires dual presentation of basic and diluted EPS
on the face of the income statement for all entities with complex capital
structures and requires a reconciliation of the numerator and denominator of the
basic EPS computation to the numerator and denominator of the diluted EPS
computation., SFAS 128 is effective for financial statements issued for periods
ending after December 15, 1997; earlier application is not permitted. Management
has determined that the adoption of SFAS 128 will not have a material effect on
the accompanying consolidated financial statements.
Statement of Financial Accounting Standards No. 130 ("SFAS 130"), "Comprehensive
Income", was issued in June 1997 and becomes effective for fiscal periods
beginning after December 15, 1997. SFAS 130 requires reclassification of earlier
financial statements for comparative purposes. SFAS No. 130 requires that
changes in the amounts of certain items, including foreign currency translation
adjustments and gains and losses on certain securities be shown in the financial
statements. SFAS No. 130 does not require a specific format for the financial
statement in which comprehensive income is reported, but does require that an
amount representing total comprehensive income be reported in that statement.
Management has not yet quantified the effect of the new standard on the
consolidated financial statements.
6
<PAGE>
Statement of Financial Accounting Standards No. 131 ("SFAS 131"), "Disclosures
about Segments of an Enterprise and Related Information," was issued in June
1997 and is effective for fiscal periods beginning after December 15, 1997. This
statement will change the way public companies report information about segments
of their business in their annual financial statements and requires them to
report selected segment information in their quarterly reports issued to
shareholders. It also requires entity-wide disclosures about the products and
services an entity provides, the material countries in which it holds assets and
reports revenues, and its major customers. Management has not yet quantified the
effect of this new standard on the consolidated financial statements.
4. Subsequent event
- -------------------
On October 28, 1997 Home Federal Bancorp declared a three for two stock split,
under which every two shares of its common stock outstanding at the close of
business on November 10, 1997 will be converted into three shares of common
stock. No fractional shares will be issued. Cash in lieu of fractional shares,
based on the market price of a share of Home Federal Bancorp's common stock on
November 10, 1997, will be paid to shareholders. All per share information has
been restated to give effect to the stock split. Concurrently with the stock
split the company increased the number of authorized shares of no par common
stock to 9,500,000.
7
<PAGE>
Part I, Item 2: Management's Discussion and Analysis of Financial Condition and
Results of Operations
Home Federal Bancorp (the "Company") is organized as a unitary savings and loan
holding company and owns all the outstanding capital stock of Home Federal
Savings Bank (the "Bank"). The business of the Bank and therefore, the Company,
is to provide consumer and business banking services to certain markets in the
south-central portions of the State of Indiana. The Bank does business through
16 full service banking branches.
RESULTS OF OPERATIONS:
Quarter Ended September 30, 1997 Compared to Quarter Ended September 30, 1996
- -----------------------------------------------------------------------------
General
The Company reported net income of $2.5 million for the quarter ended September
30, 1997, compared to $431,000 for the quarter ended September 30, 1996, an
increase of $2.0 million. Earnings per share for the current quarter were $0.69
compared to $0.13 for the quarter ended September 30, 1996. The three month
period ended September 30, 1996 included an after tax charge of $1.7 million to
help recapitalize the Federal Deposit Insurance Corporation's Savings
Association Insurance Fund (SAIF). Comparing the current first quarter to last
year's first quarter, without the SAIF charge, net income increased $330,000 or
15.5%.
Net Interest Income
Net interest income before provision for loan losses increased by $611,000 for
the quarter ended September 30, 1997, compared to the quarter ended September
30, 1996. The increase is due to the total interest sensitive assets growing
faster than interest bearing liabilities. The return on interest bearing assets,
as well as the cost of interest bearing liabilities remained relatively constant
for the two quarters ended September 30, 1997 and September 30 1996.
Net interest income after provision for loan losses increased by $485,000 or
9.2% for the quarter ended September 30, 1997, compared to the quarter ended
September 30, 1996. The provision for loan losses increased $126,000 due to
several factors. These factors include higher loans outstanding, increased
activity in commercial loans, as well as $45,000 to increase the ratio of the
loan loss allowance to total loans outstanding in the quarter ended September
30, 1997. At September 30, 1997, the loan loss allowance covered 113% of
non-performing loans, real estate owned and other repossessed assets. To the
best of management's knowledge, and in its opinion, classified assets do not
represent material credits which would cause management to have serious doubts
as to the ability of such borrowers to comply with their loan repayment terms.
Based on management's analysis of classified assets, loss histories and current
future projections, the allowance balance appears adequate at September 30,
1997.
Quarter ending September 30: (in thousands) 1997 1996
------------------------------------------- ---- ----
Allowance beginning balance ..................... $ 3,649 $ 3,061
Provision for loan losses ....................... 293 167
Charge-offs ..................................... (202) (126)
Recoveries ...................................... 20 20
- ------------------------------------------------- ------- -------
Loan Loss Allowance ............................. $ 3,760 $ 3,122
Allowance to Total Loans ........................ .63% .58%
Allowance to Nonperforming Assets ............... 113% 108%
8
<PAGE>
Interest Income
Total interest income for the three-month period ended September 30, 1997,
increased $1,248,000, or 10.0%, over the same period of the prior year. The
increase is due primarily to increased loans outstanding.
Interest Expense
Total interest expense for the three-month period ended September 30, 1997
increased $637,000, or 9.1%, as compared to the same period a year ago. The
increase in interest expense for the three month period ended September 30,
1997, compared to the same period ended September 30, 1996, was due to increased
deposit and borrowing balances outstanding.
Other Income
Total other income for the three-month period ended September 30, 1997,
increased $40,000 or 2.1% over the same period a year ago. Insurance, annuity
income and other fees increased $52,000 reflecting an increase in annuity
commissions of $63,000, which was offset by insurance commission decrease of
$23,000 for the quarter ended September 30, 1997, versus the quarter ended
September 30, 1996. Miscellaneous income increased $66,000 due primarily from
the sale of a Salem branch building which was relocated.
Joint venture income declined $57,000 for the three month period ended September
30, 1997, as compared to the three month period ended September 30, 1996. Joint
venture income comes primarily from the sale of lots in several projects the
Company is involved in and is difficult to project for future periods.
Other Expenses
Total other expenses for the three-month period ended September 30, 1997,
decreased $2.9 million over the same period ended September 30, 1996. This
decrease reflects the previously mentioned SAIF insurance charge of $3.0 million
assessed in the quarter ended September 30, 1996, as well as a lower deposit
assessment rate in the quarter ended September 30, 1997. Without the SAIF
assessment in 1996 other expenses would have increased $91,000 or 2.6%.
Compensation and employee benefits increased $165,000. Increases in compensation
were due to normal salary increases as well as an increases in employee benefit
and retirement plan expense.
FINANCIAL CONDITION:
Total assets increased by $11.3 million from June 30, 1997, to September 30,
1997. Net loans receivable increased by $9.1 million with loans held for sale
increasing $887,000. Cash and cash equivalents decreased $1.1 million and
securities available for sale and held to maturity (including mortgage-backed
securities) increased $1.6 million.
Total liabilities increased $9.2 million from June 30, 1997, to September 30,
1997. Deposits from customers and senior debt decreased $2.4 million and
$325,000 respectively, while advances from the Federal Home Loan Bank increased
$11.0 million.
Shareholders' equity increased $2.2 million during the same period. Retained
earnings increased $2.5 million from net income and decreased $425,000 for
dividends paid. Common stock increased $20,000 for stock options exercised
during the period. In accordance with Statement of Accounting Standards 115,
"Accounting for Certain Investments in Debt and Equity Securities", the Company
had unrealized gains in its available for sale portfolio of $54,000, or a
$107,000 increase in shareholders' equity from the June 30, 1997 loss position
of $53,000.
9
<PAGE>
At September 30, 1997, the Bank exceeded all current OTS regulatory capital
requirements as follows (in thousands):
<TABLE>
<CAPTION>
To Be Categorized
as "Well Capitalized"
Under Prompt
For Capital Corrective Action
(dollars in thousands) Actual Adequacy Purposes Provisions
- ---------------------------------------------------------------------------------------------------
Amount Ratio Amount Ratio Amount Ratio
- ---------------------------------------------------------------------------------------------------
As of September 30, 1997
<S> <C> <C> <C> <C> <C> <C>
Tangible capital (to total assets) $56,185 8.16% $10,325 1.50% $ N/A $ N/A
Core capital (to total assets) ... $56,185 8.16% $20,649 3.00% $ N/A $ N/A
Total risk-based capital
(to risk-weighted assets) .... $59,588 12.06% $39,518 8.00% $49,397 10.00%
Tier 1 risk-based capital
(to risk-weighted assets) .... $56,185 11.37% $ N/A $ N/A $29,638 6.00%
Tier 1 leverage capital
(to average assets) .......... $56,185 8.13% $ N/A $ N/A $34,540 5.00%
</TABLE>
Liquidity and Capital Resources
The standard measure of liquidity for the thrift industry is the ratio of cash
and eligible investments to a certain percentage of borrowings due within one
year and net withdrawable deposit accounts. The minimum required level is
currently set by OTS regulation at 5%. At September 30, 1997, the Bank's average
liquidity ratio was 11.10%. Historically, the Bank has maintained its liquid
assets which qualify for purposes of the OTS liquidity regulations above the
minimum requirements imposed by such regulations and at a level believed
adequate to meet requirements of normal daily activities, repayment of maturing
debt and potential deposit outflows. Cash flow projections are regularly
reviewed and updated to assure that adequate liquidity is maintained. Cash for
these purposes is generated through the sale or maturity of investment
securities and loan sales and repayments, and may be generated through increases
in deposits. Loan payments are a relatively stable source of funds, while
deposit flows are influenced significantly by the level of interest rates and
general money market conditions. Borrowings may be used to compensate for
reductions in other sources of funds such as deposits. As a member of the FHLB
system, the Bank may borrow from the FHLB of Indianapolis. At September 30,
1997, the Bank had $90.9 million in such borrowings. As of that date, the Bank
had commitments to fund loan originations and purchases of approximately $27.1
million and commitments to sell loans of $15.3 million. In the opinion of
management, the Bank has sufficient cash flow and borrowing capacity to meet
current and anticipated funding commitments.
10
<PAGE>
Supplemental Data: Three Months Ended
September 30,
------------------
1997 1996
---- ----
Weighted average interest rate earned
on total interest-earning assets ........... 8.48% 8.50%
Weighted average cost of total
interest-bearing liabilities ............... 4.90% 4.92%
Interest rate spread during period ............. 3.58% 3.59%
Net yield on interest-earning assets
(net interest income divided by average
interest-earning assets on annualized basis) 3.75% 3.72%
Total interest income divided by average
total assets (on annualized basis) ......... 7.96% 7.93%
Total interest expense divided by
average total assets (on annualized basis) . 4.40% 4.42%
Net interest income divided by average
total assets (on annualized basis) ......... 3.52% 3.47%
Return on assets (net income divided by
average total assets on annualized basis) .. 1.42% 0.27%
Return on equity (net income divided by
average total equity on annualized basis) .. 16.70% 3.31%
At September 30,
------------------
1997 1996
---- ----
Book value per share outstanding ............... $17.66 $15.19
Interest rate spread ........................... 3.54% 3.57%
Nonperforming Assets:
Loans: Non-accrual ....................... $2,899 $2,771
Past due 90 days or more .......... 2 29
Restructured ...................... 1 1
------ ------
Total nonperforming loans ................. 2,902 2,801
Real estate owned, net .................... 302 0
Other repossessed assets, net ............. 136 83
------ ------
Total Nonperforming Assets ................ $3,340 $2,884
Nonperforming assets divided by total assets.... 0.48% 0.46%
Nonperforming loans divided by total loans ..... 0.49% 0.52%
Balance in Provision for Loan Losses ........... $3,760 $3,122
11
<PAGE>
PART II. OTHER INFORMATION
Item 3. Quantitative and Qualitative Analysis of Financial Condition
and Results of Operations.
In the opinion of management the results for the quarter ended September 30,
1997 will not be materially different from the results presented on page 11 of
the annual report for fiscal year 1997.
Item 4. Submission of Matters to a Vote of Security Holders.
N/A
Item 5. Other information
N/A
Item 6. Exhibits and Reports on Form 8-K
(a) N/A
(b) Reports on Form 8-K.
Registrant filed no reports on Form 8-K during the fiscal
quarter ended September 30, 1997.
12
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as
amended, the Registrant has duly caused this report to be signed on behalf of
the undersigned thereto duly authorized.
Home Federal Bancorp
DATE: November 11, 1997 /S/ Lawrence E. Welker
------------------- -----------------------
Lawrence E. Welker,
Executive Vice President,
Treasurer, and Chief Financial Officer
13
<TABLE> <S> <C>
<ARTICLE> 9
<LEGEND>
This schedule contains summary financial
information extracted from the registrant's
unaudited consolidated finanacial statements
for the three months ended September 30, 1997
and is qualified in its entirety by reference
to such financial statements.
</LEGEND>
<CIK> 0000867493
<NAME> Home Federal Bancorp
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> JUN-30-1998
<PERIOD-START> JUL-01-1997
<PERIOD-END> SEP-30-1997
<CASH> 15,900
<INT-BEARING-DEPOSITS> 2,775
<FED-FUNDS-SOLD> 0
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 42,357
<INVESTMENTS-CARRYING> 12,501
<INVESTMENTS-MARKET> 12,468
<LOANS> 584,720
<ALLOWANCE> 3,760
<TOTAL-ASSETS> 694,109
<DEPOSITS> 525,349
<SHORT-TERM> 37,048
<LIABILITIES-OTHER> 5,147
<LONG-TERM> 65,820
0
0
<COMMON> 7,569
<OTHER-SE> 52,511
<TOTAL-LIABILITIES-AND-EQUITY> 60,080
<INTEREST-LOAN> 12,834
<INTEREST-INVEST> 851
<INTEREST-OTHER> 54
<INTEREST-TOTAL> 13,739
<INTEREST-DEPOSIT> 6,184
<INTEREST-EXPENSE> 7,665
<INTEREST-INCOME-NET> 6,074
<LOAN-LOSSES> 293
<SECURITIES-GAINS> (14)
<EXPENSE-OTHER> 612
<INCOME-PRETAX> 4,106
<INCOME-PRE-EXTRAORDINARY> 4,106
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 2,461
<EPS-PRIMARY> 0.46
<EPS-DILUTED> 0
<YIELD-ACTUAL> 8.48
<LOANS-NON> 2,899
<LOANS-PAST> 2
<LOANS-TROUBLED> 1
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 3,649
<CHARGE-OFFS> 202
<RECOVERIES> 20
<ALLOWANCE-CLOSE> 3,760
<ALLOWANCE-DOMESTIC> 0
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
