FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
QUARTERLY REPORT UNDER SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
December 31, 1998 Commission
File Number 000-18991
PEOPLES BANCORP
212 WEST SEVENTH STREET
AUBURN, IN 46706
Indiana 35-1811284
(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification Number)
Registrant's telephone number, including area code: (219)925-2500
Indicate by a 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 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 the latest practicable date:
Common stock, par value $1 per share 3,261,534 shares
- ------------------------------------ ----------------
(Title of class) (Outstanding at January 19, 1998)
<PAGE>
PEOPLES BANCORP
AND SUBSIDIARY
Page
Number
Part I Financial Information:
Item 1. Consolidated Financial Statements
Consolidated Statement of Financial Condition
as of December 301 1998 and September 30, 1998.........................3
Consolidated Statement of Income for the three
months ended December 13, 1998 and 1997................................4
Consolidated Statement of Changes in Stockholders'
Equity for the three months ended December 31, 1998....................5
Consolidated Statement of Cash Flows for the
three months ended December 31, 1998 and 1997..........................6
Notes to Consolidated Financial Statements...........................7-8
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations.................................9-14
Part II. Other Information
Item 6. Exhibits and Reports on Form 8-K.................................15
Signatures....................................................................16
<PAGE>
PART I. FINANCIAL INFORMATION
PEOPLES BANCORP
AND SUBSIDIARY
CONSOLIDATED STATEMENT OF FINANCIAL CONDITION
ASSETS
December 31, September 30,
1998 1998
------------ ------------
Cash $ 5,491,361 $ 3,567,625
Short-term interest-bearing deposits 3,925,360 -
------------ ------------
Total cash and cash equivalents 9,416,721 3,567,625
Interest-bearing deposits 5,318,000 718,000
Securities available for sale 20,631,532 21,877,758
Securities held to maturity
(approximate market value $714,634 and $4,716,777) 699,416 4,695,993
Mortgage-backed securities 345,387 372,282
Loans:
Loans 274,205,753 267,605,591
Less: Allowance for loan losses 974,898 947,008
------------ ------------
Net loans 273,230,855 266,658,583
Premises and equipment 2,354,056 2,396,878
Federal Home Loan Bank of Indianapolis stock,at cost 2,217,700 2,217,700
Other assets 1,754,972 2,431,962
------------ ------------
Total assets $315,968,639 $304,936,781
============ ============
LIABILITIES
Bank overdraft $ - $ 1,171,306
NOW and savings deposits 83,047,060 75,428,503
Certificates of deposit 178,794,103 173,116,777
Reverse Repurchase Agreements 3,363,034 4,202,653
Federal Home Loan Bank advances 4,000,000 5,000,000
Advances by borrowers for taxes and insurance 2,005 998
Other liabilities 1,819,423 1,345,917
------------ ------------
Total liabilities 271,025,625 260,266,154
------------ ------------
STOCKHOLDERS' EQUITY
Preferred stock, par value $1;
Authorized and unissued -- 5,000,000 shares - -
Common stock, par value $1;
Authorized--7,000,000 shares:
Issued and outstanding--3,261,534 and
3,280,684 shares 3,261,534 3,280,684
Additional paid-in capital 2,655,507 3,020,798
Retained earnings--substantially restricted 38,965,327 38,272,422
Accumulated other comprehensive income 60,646 96,723
------------ -------------
Total stockholders' equity 44,943,014 44,670,627
------------ ------------
Total liabilities and stockholders' equity $315,968,639 $304,936,781
============ ============
See notes to consolidated financial statement
<PAGE>
PEOPLES BANCORP
AND SUBSIDIARY
CONSOLIDATED STATEMENT OF INCOME
(Unaudited)
Three months ended
December 31,
--------------------------------------
1998 1997
----------- -----------
Interest Income:
Loans $5,359,236 $4,914,655
Securities 344,885 498,034
Mortgage-backed securities 9,062 11,501
Other interest and dividend income 132,499 219,673
----------- -----------
5,845,682 5,643,863
----------- -----------
Interest Expense:
Now and savings deposits 552,657 516,787
Certificates of deposit 2,387,545 2,445,742
Short-term borrowings 40,892 42,225
Federal Home Loan Bank Advances 63,206 -
----------- -----------
3,044,300 3,004,754
----------- -----------
Net Interest Income 2,801,382 2,639,109
Provision for losses on loans 30,942 5,121
----------- -----------
Net Interest Income After Provision
for Losses on Loans 2,770,440 2,633,988
----------- -----------
Other Income:
Trust income 8,138 16,858
Fees and service charges 142,381 111,670
Other income 39,093 30,123
----------- -----------
189,612 158,651
----------- -----------
Other Expense:
Salaries and employee benefits 595,402 630,640
Net occupancy expenses 78,925 68,956
Equipment expenses 105,345 59,539
Data processing expense 101,583 77,731
Deposit insurance expense 35,824 37,579
Other expenses 288,882 263,676
----------- -----------
1,205,961 1,138,121
----------- -----------
Income Before Income Tax 1,754,091 1,654,518
Income tax expense 669,800 629,330
----------- -----------
Net Income $1,084,291 $1,025,188
=========== ===========
Basic Income Per Common Share $0.33 $0.30
Diluted Income Per Common Share $0.33 $0.30
Average Common Shares Outstanding 3,270,559 3,391,460
See notes to consolidated financial statements.
<PAGE>
<TABLE>
PEOPLES BANCORP
AND SUBSIDIARY
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
(Unaudited)
Accumulated
Common Stock Retained Other
-------------------- Additional Earnings Comprehensive
Number Paid-in (Substantially Comprehensive Income
of Shares Amount Capital Restricted) Income Net of Tax Total
<S> <C> <C> <C> <C> <C> <C> <C>
--------- ---------- ---------- -------------- ------------- ------------- ------------
Balances, September 30,
1998 3,280,684 $3,280,684 $3,020,798 $38,272,422 $ - $ 96,723 $44,670,627
Unrealized gains (losses) on
securities available for sale - - - - (36,077) (36,077) (36,077)
Cash dividends
($.12per share) - - - (391,386) - (391,386)
Repurchase of stock (19,150) (19,150) (365,291) - - (384,441)
Net income for the
three months ended
December 31, 1998 - - - 1,084,291 1,084,291 - 1,084,291
--------- ---------- ---------- ----------- ---------- -------- -----------
Balances, December 31,
1998 3,261,534 $3,261,534 $2,655,507 $38,965,327 $1,048,214 $ 60,646 $44,943,014
========= ========== ========== =========== ========== ======== ============
See notes to consolidated financial statements.
</TABLE>
<PAGE>
PEOPLES BANCORP
AND SUBSIDIARY
CONSOLIDATED STATEMENT OF CASH FLOWS
Threee months ended
December 31,
----------------------------
1998 1997
------------- -------------
Operating Activities:
Net income $1,084,291 $1,025,188
Adjustments to reconcile net income to net
cash provided by operating activities:
Provision for loan losses 30,942 5,121
Depreciation and amortization 105,322 69,594
Amortization of premiums and discounts on
investment securities (17,686) (74,707)
Amortization of deferred loan fees (116,556) (77,251)
Change in:
Interest receivable 183,136 1,607
Interest payable 49,775 (4,778)
Other adjustments: (762,922) 533,790
------------- -------------
Net cash provided by operating activities 556,302 1,478,564
------------- -------------
Investing Activities:
Net change in interest-bearing deposits (4,600,000) (1,720,000)
Purchases of securities-held to maturity - -
Purchases of investment securities-avilable for sale (187,322) (1,506,462)
Proceeds from maturities of investment
securities-held to maturity 4,027,498 33,544
Proceeds from maturities of securities-available
for sale 2,100,000 2,000,000
Net change in mutual funds (96,785) (545,266)
Net change in loans (6,509,027) (6,409,226)
Purchases of premises and equipment (62,500) (68,960)
Proceeds from sales of real estate owned - -
------------- -------------
Net cash used by investing activities (5,328,136) (8,216,370)
------------- -------------
Financing Activities:
Net change in:
NOW and savings accounts 7,612,784 791,306
Certificates of deposit 5,624,708 954,186
Short-term borrowings (839,619) 991,911
FHLB advances (1,000,000) -
Net change in advances by borrowers for
taxes and insurance 1,007 1,034
Cash dividends (393,509) (361,812)
Repurchase of common stock (384,441) (23,823)
------------- -------------
Net cash provided by financing activities 10,620,930 2,352,802
------------- -------------
Net Change in Cash and Cash Equivalents 5,849,096 (4,385,004)
Cash and Cash Equivalents, Beginning of Period 3,567,625 10,732,144
------------- -------------
Cash and Cash Equivalents, End of Period $9,416,721 $6,347,140
============= =============
Additional Cash Flows and Supplementary Information:
Interest paid $2,994,525 $3,009,532
Income tax paid 257,991 174,414
See notes to consolidated financial statements.
<PAGE>
PEOPLES BANCORP
AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Information with respect to the three months ended December 31, 1998
and 1997, and at December 31, 1998 and 1997, is unaudited.)
1. BASIS OF PRESENTATION
The significant accounting policies followed by Peoples Bancorp (the Company)
and its wholly-owned subsidiary, Peoples Federal Savings Bank of DeKalb County,
(the Bank), for interim financial reporting are consistent with the accounting
policies followed for annual financial reporting. All adjustments which are, in
the opinion of management, necessary for a fair presentation of the results for
the periods reported, consisting only of normal recurring adjustments, have been
included in the accompanying unaudited consolidated condensed financial
statements. The results of operations for the three months ended December 31,
1998, are not necessarily indicative of those expected for the remainder of the
year.
2. CONSOLIDATED STATEMENT OF FINANCIAL CONDITION
The Consolidated Statement of Financial Condition at September 30, 1998, has
been taken from the audited consolidated financial statements at that date.
3. CASH DIVIDEND
A cash dividend of $.12 per common share was declared on December 15, 1998,
payable on January 21, 1999, to stockholders of record as of January 4, 1999.
4. EARNINGS PER COMMON SHARE
Basic earnings per share have been computed based on the average common shares
outstanding during, and the earnings for, the periods presented. Diluted
earnings per share were calculated as if outstanding stock options at December
31, 1997 had been exercised, and the exercise price used to repurchase stock at
the then current market price. The resulting number of shares was used to
calculate the diluted earnings per share, which did not differ from the basic
earnings per share number. There are no outstanding potentially dilutive stock
equivalents at December 31, 1998.
PEOPLES BANCORP
AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Information with respect to the three months ended December 31, 1998
and 1997, and at December 31, 1998 and 1997, is unaudited.)
5. COMMITMENTS TO FUND LOANS
Commitments to fund mortgage loans are as follows:
December 31, 1998 September 30, 1998
----------------------- ----------------------
Amount Rate Amount Rate
------------- ------- ------------- -------
Adjustable rate $3,940,950 $2,776,050
Fixed rate 3,519,050 7.10% 3,970,570 7.22%
------------- ======= ------------- =======
$7,460,000 $6,746,620
============== =============
6. STOCK REPURCHASE PLAN
On May 17, 1997, the Company's board of directors authorized the repurchase of
up to 240,000 of the Company's outstanding shares of common stock . Such
purchases will be made subject to market conditions in the open market or
privately negotiated transactions. At December 31, 1998, the Company has
repurchased 156,108 shares of its outstanding stock under this plan.
7. RECLASSIFICATIONS
Certain amounts in the 1998 consolidated financial statements have been
reclassified to conform to the 1999 presentation.
8. COMPREHENSIVE INCOME
The Company adopted Statement of Financial Accounting Standards No. 130,
Reporting Comprehensive Income for the fiscal year starting October 1, 1998. The
only comprehensive income item affecting the company is the net unrealized gain
on available for sale securities. This item is presented, net of tax as part of
the Consolidated Statement of Changes in Stockholders' Equity.
<PAGE>
PEOPLES BANCORP
AND SUBSIDIARY
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
FINANCIAL CONDITION
Total assets at December 31, 1998 were $315,968,639, an increase of $11,031,858
from September 30, 1998. The increase is attributable primarily to loans which
increased $6,572,272 to $273,230,855, cash and cash equivalents which increased
$5,849,096 to $9,416,721, and interest-bearing time deposits which increased
$4,600,000 to $5,318,000. These increases were partially offset by decreases in
investment securities.
Total deposits were $261,841,163 at December 31, 1998, an increase of
$13,295,883 since September 30, 1998.
LIQUIDITY
As calculated for regulatory purposes, liquidity was 5.21% at December 31, 1998
as compared to 9.42% at September 30, 1998. Liquidity and loan repayments may
need to be supplemented with borrowings from the Federal Home Loan Bank to meet
loan fundings and other obligations and expenditures.
CAPITAL RESOURCES
The following table presents Peoples Federal Savings Bank's current estimates of
its regulatory capital position as a dollar amount and as a percentage of assets
as of December 31, 1998.
At December 31, 1998
-------------------------------------------------
Required for To Be Well
Actual Adequate Capital(1) Capitalized (1)
-------- ----- ------------------- --------------
Amount % Amount % Amount %
-------- ----- -------- ---------- -------- -----
Total risk-based capital (1)
(to risk-weighted assets) $36,980 22.6% $13,104 8.0% $16,380 10.0%
Tier 1 Capital (1)
(to adjusted tangible assets) $36,038 11.6% $12,400 4.0% $18,603 6.0%
Tier 1 Capital (1)
(to adjusted total assets) $36,038 11.6% $12,400 4.0% $15,502 5.0%
(1) as defined by regulatory agencies
<PAGE>
PEOPLES BANCORP AND SUBSIDIARY
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
(Continued)
SUMMARY OF RESULTS OF OPERATIONS
Peoples Bancorp and subsidiary had net income of $1,084,291 or $0.33 per share
for the three months ended December 31, 1998 as compared to $1,025,188 or $0.30
per share for the same period ended 1997. The increase was primarily due to
higher net interest income partially offset by higher operating expenses.
NET INTEREST INCOME
Net interest income was $2,770,440 for the three months ended December 31, 1998
as compared to $2,633,988 for the same period ended 1997. Interest income
increased $201,819 to $5,845,682 for the three months primarily due to higher
volumes of loans. Interest expense increased $39,546 to $3,044,300 primarily due
to higher deposit and borrowing volumes. Provision for loan loss increased
$25,821 to $30,942 for the three months ended December 31, 1998, reflecting
management's continued review of the loan portfolio.
The following table presents average balances and associated rates earned and
paid for all interest earning assets and interest bearing liabilities for the
three months ended December 31, 1998 and 1997. (dollars in thousands)
1998 1997
----------------------------- -----------------------------
Average Interest Effective Average Interest Effective
Balance Yield Rate Balance Yield Rate
---------- -------- --------- ---------- -------- ---------
Loans $274,406 $5,359 7.81% $238,282 $4,915 8.25%
Securities 19,376 345 7.12% 37,923 543 5.73%
Mortgage-backed
securities 362 9 9.94% 481 11 9.15%
Other 9,732 133 5.47% 9,722 175 7.20%
---------- -------- ---------- --------
Combined 303,876 5,846 7.70% 286,408 5,644 7.88%
---------- -------- ---------- --------
NOW and savings
deposits 78,543 553 2.82% 71,934 517 2.87%
Certificates of
deposit 173,976 2,388 5.49% 171,936 2,446 5.69%
Borrowings 8,314 104 5.00% 3,491 42 4.81%
---------- -------- ---------- --------
Combined $260,833 3,045 4.67% $247,361 3,005 4.86%
---------- -------- ---------- --------
Net interest income/
interest rate spread $2,801 3.03% $2,639 3.02%
======== ======== ======== =======
<PAGE>
PEOPLES BANCORP AND SUBSIDIARY
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
(Continued)
The following table illustrates the change in net interest income due to changes
in rates and average volumes. (dollars in thousands)
Three months ended December 31, 1998 vs. 1997
Rate Volume Total
-------- --------- --------
Loans $(272) $ 717 $ 445
Securities 122 (275) (153)
Mortgage-backed
securities - (3) (3)
Other (87) - (87)
------- --------- --------
Total (237) 439 202
------- --------- --------
NOW and savings deposits (9) 45 36
Certificates of deposit (87) 29 (58)
Short-term borrowings - (1) (1)
FHLB advances - 63 63
------- --------- --------
Total (96) 136 40
------- --------- --------
Net interest income $(141) $ 303 $ 162
======= ========= ========
NON-PERFORMING ASSETS AND SUMMARY OF LOAN LOSS EXPERIENCE
Non-performing assets at December 31, 1998 and September 30, 1998 are as
follows: (dollars in thousands)
December 31,1998 September 30, 1998
---------------- ------------------
Non-accruing loans $486 $729
Loans contractually past due 90 days
or more other than nonaccruing 61 23
Real estate owned 22 -
------ ------
$569 $752
====== ======
<PAGE>
PEOPLES BANCORP AND SUBSIDIARY
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
(Continued)
NON-PERFORMING ASSETS AND SUMMARY OF LOAN LOSS EXPERIENCE (CONT'D)
The following table analyzes the allowance for loan and REO losses for the three
months ended December 31, 1998 and 1997. (dollars in thousands)
Loans REO
------------------ --------------------
1998 1997 1998 1997
-------- -------- --------- --------
Balance at 9/30 $947 $887 $ - $ -
Provision adjustment charged
(credited) to expense 30 5 - -
Chargeoffs (6) (5) - -
Recoveries 3 13 - -
-------- -------- --------- --------
Balance at 12/31 $974 $900 $ - $ -
======== ======== ========= ========
It is the Bank's policy to carry REO at net realizable value. After
repossession, appraised value is reduced for estimated repair and selling costs,
and the net amount is the carrying value of the property. Any changes in
estimated realizable value after the initial repossession, are charged to a
specific loss reserve account for REO. At present, all REO is carried at the
Bank's estimated realizable value.
Management continually reviews the mix and delinquency status of its loan
portfolio and classifies those loans which it deems appropriate. As of December
31, 1998, asset balances and the corresponding allocation of the provision for
loan losses were as follows: (dollars in thousands)
Asset Allocation of
Balance Reserve
------------ -------------
Loss $ 33 $ 33
Doubtful - -
Substandard 572 114
Unclassified 315,364 827
----------- ---------
$315,969 $974
=========== =========
<PAGE>
PEOPLES BANCORP AND SUBSIDIARY
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
(Continued)
NON-PERFORMING ASSETS AND SUMMARY OF LOAN LOSS EXPERIENCE (CONT'D)
The allowances for loan and real estate owned losses represent amounts available
to absorb future losses. Such allowances are based on management's continuing
review of the portfolios, historical charge-offs, current economic conditions,
and such other factors, which in management's judgment deserve recognition in
estimating possible losses. In addition, various regulatory agencies, as an
integral part of their examination process, periodically review the allowance
for loan losses. Such agencies may require additions to the allowances based on
their judgment about the information available to them at the time of their
examination. Provisions for losses are charged to earnings to bring the
allowances to levels considered necessary by management. Losses are charged to
the allowances when considered probable, or in the case of REO, at the time of
repossession. Management believes that the allowances are adequate to absorb
known and inherent losses in the portfolio. No assurance can be given, however,
that economic conditions which may adversely affect the Bank's markets or other
circumstances will not result in future losses in the portfolio.
The following table presents an allocation of the Bank's allowance for loan
losses at the dates indicated and the percentage of loans in each category to
total loans. (dollars in thousands)
Balance at end of period December 31, December 31,
applicable to: ---------------- -----------------
1998 1997
---------------- -----------------
Residential Mortgage Loans $790 92.1% $699 92.4%
Commercial Real Estate Loans 20 2.2% 18 2.0%
Commercial and Other Loans - - - -
Consumer Loans 65 5.7% 40 5.6%
Unallocated 99 143
------ -------- ------- --------
Total $974 100.0% $900 100.0%
====== ======== ======= ========
<PAGE>
PEOPLES BANCORP AND SUBSIDIARY
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
(Continued)
NON-INTEREST INCOME
The Company's non-interest income increased to $189,612 as compared to $158,651
for the same periods one year ago. The increase was attributable to higher fee
income.
NON-INTEREST EXPENSE
Total non-interest expense for the three months ended December 31, 1998 was
$1,205,961 as compared to $1,138,121 for 1997. The increase was due to increased
equipment expenses due to the addition of new mortgage loan processing software,
ATM machines and other computer upgrades being undertaken in anticipation of the
year 2000, and increases in trust expense and NOW department expense due to
software upgrades which necessitate higher support fees. These increases were
partially offset by lower personnel costs due to the high loan origination
volume. Since the Bank can recognize only the amount of points charged which
cover their cost to originate a loan, and must defer the rest, the high loan
origination volume generates higher fee recognition, which offsets a higher
portion of salary expense.
INCOME TAXES
Income taxes for the three months ended December 31, 1998 were $669,800, as
compared to $629,330 for a year ago. The higher tax figure this year is a result
of higher pretax income.
<PAGE>
PART II. OTHER INFORMATION
PEOPLES BANCORP
AND SUBSIDIARY
Item 6. Reports on Form 8-K
No reports on Form 8-K were filed during the three months ended December 31,
1998.
<PAGE>
PEOPLES BANCORP
AND SUBSIDIARY
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.
PEOPLES BANCORP
(REGISTRANT)
Date: January 19, 1999 Maurice F. Winkler III
President and Chief Operating Officer
Date: January 19, 1999 Deborah K. Stanger
Vice President and Chief Financial Officer
<TABLE> <S> <C>
<ARTICLE> 9
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> SEP-30-1999
<PERIOD-END> DEC-31-1998
<CASH> 5491361
<INT-BEARING-DEPOSITS> 9243360
<FED-FUNDS-SOLD> 0
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 20631532
<INVESTMENTS-CARRYING> 699416
<INVESTMENTS-MARKET> 714634
<LOANS> 274205753
<ALLOWANCE> 974898
<TOTAL-ASSETS> 315968639
<DEPOSITS> 261841163
<SHORT-TERM> 3363034
<LIABILITIES-OTHER> 1821428
<LONG-TERM> 4000000
0
0
<COMMON> 44943014
<OTHER-SE> 0
<TOTAL-LIABILITIES-AND-EQUITY> 315968639
<INTEREST-LOAN> 5359236
<INTEREST-INVEST> 353947
<INTEREST-OTHER> 132499
<INTEREST-TOTAL> 5845682
<INTEREST-DEPOSIT> 2940202
<INTEREST-EXPENSE> 3044300
<INTEREST-INCOME-NET> 2801382
<LOAN-LOSSES> 30942
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 1205961
<INCOME-PRETAX> 1754091
<INCOME-PRE-EXTRAORDINARY> 1084291
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1084291
<EPS-PRIMARY> .33
<EPS-DILUTED> .33
<YIELD-ACTUAL> 3.69
<LOANS-NON> 486000
<LOANS-PAST> 61000
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 947000
<CHARGE-OFFS> 6000
<RECOVERIES> 3000
<ALLOWANCE-CLOSE> 974000
<ALLOWANCE-DOMESTIC> 974000
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
