<PAGE>
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-QSB
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES
EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED JUNE 30, 1996
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES
EXCHANGE ACT OF 1934
COMMISSION FILE NUMBER 0-19030
COMMUNITY TRUST FINANCIAL SERVICES CORPORATION
(Exact name of Registrant as specified in its charter)
------------------------------------------------------
Georgia 58-1856582
(State of incorporation) (I.R.S.Employer Identification No.)
1784 ATLANTA HIGHWAY, HIRAM, GEORGIA 30141
------------------------------------------
(Address of principal executive offices)
(770) 445-1014
(Registrant's telephone number including area code)
--------------------------
Securities registered pursuant to Section 12(b) of the Act:
None
Securities registered pursuant to Section 12(g) of the Act:
Common Stock, $2.50 par value
(Title of Class)
---------------------------
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 and (2) has been subject to such filing requirements for
the past 90 days. YES X NO
--- ----
Outstanding at June 30, 1996
------------------------------
835,569 shares
<PAGE>
COMMUNITY TRUST FINANCIAL SERVICES CORPORATION
QUARTERLY REPORT ON FORM 10-QSB
FOR THE QUARTER ENDED JUNE 30, 1996
TABLE OF CONTENTS
-----------------
ITEM PAGE
NUMBER NUMBER
- ------ ------
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
1. Consolidated Balance Sheets at June 30, 1996 (unaudited)
and December 31, 1995 (audited)............................. 1
2. Consolidated Statements of Earnings for the three months
ended June 30, 1996 and June 30, 1995, and the six months
ended June 30, 1996 and June 30, 1995 (unaudited)........... 2
3. Consolidated Statements of Cash Flows for the six months
ended June 30, 1996 and June 30, 1995 (unaudited)........... 3
4. Notes to Consolidated Financial Statements.................. 5
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations................... 6
PART II - OTHER INFORMATION........................................ 9
Item 1. Legal Proceedings.......................................... 9
Item 2. Changes in Securities...................................... 9
Item 3. Defaults upon Senior Securities............................ 9
Item 4. Submission of Matters to a Vote of Security Holders........ 9
Item 5. Other Information.......................................... 9
Item 6. Exhibits and Reports on Form 8-K........................... 9
Signatures................................................. 10
<PAGE>
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
COMMUNITY TRUST FINANCIAL SERVICES CORPORATION
Consolidated Balance Sheets
June 30, 1996 and December 31, 1995
<TABLE>
<CAPTION>
Assets June 30, December 31,
1996 1995
--------------- --------------
<S> <C> <C>
(Unaudited) (Audited)
Cash and due from banks 4,121,489 4,227,523
Federal funds sold 1,360,000 1,680,000
------------- -------------
Cash and cash equivalents 5,481,489 5,907,523
Securities available for sale 20,262,796 20,591,060
Other investments 255,000 50,000
Loans 48,613,728 38,898,163
Less: Allowance for loan losses (670,227) (583,306)
------------- -------------
Loans, net 47,943,501 38,314,857
Premises and equipment 2,211,241 2,225,916
Accrued interest receivable 745,742 717,722
Other real estate and repossessions 1,400 98,182
Other assets 886,234 325,360
------------- -------------
77,787,403 68,230,620
============= =============
Liabilities and Stockholders' Equity
Deposits:
Demand 9,749,345 9,139,735
Interest-bearing demand 16,701,557 14,073,537
Savings 11,953,783 10,915,179
Time 19,733,802 18,317,443
Time, in excess of $100,000 12,065,644 8,789,395
------------- -------------
Total deposits 70,204,131 61,235,289
Accrued interest payable 630,343 589,089
Accrued expenses and other liabilities 840,834 377,946
------------- -------------
Total liabilities 71,675,308 62,202,324
Minority interest 3,230 (3,610)
Stockholders' equity:
Common stock, $2.50 par value; 5,000,000 shares 2,088,922 2,091,247
authorized; 835,569 and 836,499 issued and outstanding
Additional paid-in capital 2,089,169 2,091,293
Retained earnings 2,105,935 1,836,240
Net unrealized holding (loss) gain on
securities available for sale (175,161) 13,126
------------- -------------
Total stockholders' equity 6,108,865 6,031,906
------------- -------------
77,787,403 68,230,620
============= =============
The consolidated balance sheet at December 31, 1995 has been taken from the audited financial statements.
See accompanying notes to consolidated financial statements.
1
</TABLE>
<PAGE>
COMMUNITY TRUST FINANCIAL SERVICES CORPORATION
Consolidated Statements of Earnings
(Unaudited)
<TABLE>
<CAPTION>
Three months ended Six months ended
June 30, June 30,
1996 1995 1996 1995
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Interest income:
Interest and fees on loans $1,382,065 $1,057,237 $2,574,420 $2,037,187
Interest on federal funds sold 26,621 30,284 60,751 80,015
Interest on investment securities:
U.S. Treasury and U.S. Government agencies 269,487 244,685 544,428 471,082
Other 29,968 20,038 54,246 44,516
----------- ----------- ----------- -----------
Total interest income $1,708,141 $1,352,244 $3,233,845 $2,632,800
Interest expense:
Interest on deposits
Demand $ 97,380 $ 100,604 $ 189,662 $ 195,883
Savings 87,267 111,559 176,526 227,192
Time 280,349 222,324 556,705 386,840
Time, in excess of $100,000 159,816 89,775 294,148 179,239
Interest on federal funds purchased 1,301 338 1,334 338
Interest expense - other 11,870 11,870
----------- ----------- ----------- -----------
Total interest expense $ 637,983 $ 524,600 $1,230,245 $ 989,492
----------- ----------- ----------- -----------
Net interest income $1,070,158 $ 827,644 $2,003,600 $1,643,308
Provision for loan losses 50,691 50,000 93,678 133,300
----------- ----------- ----------- -----------
Net interest income after
provision for loan losses $1,019,467 $ 777,644 $1,909,922 $1,510,008
----------- ----------- ----------- -----------
Other income:
Service charges and fees $ 199,311 $ 177,787 $ 396,684 $ 357,942
Insurance commissions 42,756 10,246 62,518 17,596
Gain (loss) on sales of investment securities (9,437) (492) (8,233) (492)
Appraisal fees 23,600 19,423 47,455 32,868
Miscellaneous 14,184 4,194 30,834 7,794
----------- ----------- ----------- -----------
Total other income $ 270,414 $ 211,158 $ 529,258 $ 415,708
Other expenses:
Salaries and employee benefits $ 461,336 $ 327,549 $ 871,437 $ 662,097
Occupancy 133,747 102,700 261,273 207,353
Other operating 310,024 252,754 567,039 494,055
----------- ----------- ----------- -----------
Total other expenses $ 905,107 $ 683,003 $1,699,749 $1,363,505
----------- ----------- ----------- -----------
Earnings before income taxes $ 384,774 $ 305,799 $ 739,431 $ 562,211
Income taxes 121,279 90,541 251,772 169,641
Minority interest in earnings of subsidiary 8,743 6,839
----------- ----------- ----------- -----------
Net earnings $ 254,752 $ 215,258 $ 480,820 $ 392,570
=========== =========== =========== ===========
Net earnings per common share $ 0.30 $ 0.26 $ 0.58 $ 0.47
=========== =========== =========== ===========
Weighted average common shares outstanding $ 835,569 $ 834,999 $ 836,020 $ 834,999
=========== =========== =========== ===========
</TABLE>
See accompanying notes to consolidated financial statements.
2
<PAGE>
COMMUNITY TRUST FINANCIAL SERVICES CORPORATION
Consolidated Statements of Cash Flows
(Unaudited)
<TABLE>
<CAPTION>
Six Months Ended
June 30, June 30,
1996 1995
------------- -------------
<S> <C> <C>
Cash flows from operating activities:
Net earnings $ 480,820 $ 392,570
Adjustments to reconcile net earnings to net
cash provided by operating activities:
Depreciation, amortization, and accretion 114,738 74,294
Provision for loan losses 93,678 133,300
Net (gain) loss on sale of investment securities 8,233 492
Net (gain) loss on sale of other real estate (2,330) 4,212
Net (gain) loss on sale of fixed asset 628 (1,498)
Net change in:
Interest receivable (28,020) (133,636)
Interest payable 41,254 91,843
Other assets (463,345) (43,181)
Accrued expenses and other liabilities 469,728 (72,150)
------------- -------------
Net cash provided by operating activities $ 715,384 $ 446,246
------------- -------------
Cash flows from investing activities:
Purchase of investment securities (6,656,712) (4,406,473)
Proceeds from maturities of investment securities 2,800,000 1,500,000
Proceeds from sales, calls, and paydowns
of investment securities 3,900,239 1,130,802
Purchase of equity securities (205,000) 0
Net increase in loans (9,722,322) (1,919,501)
Purchase of bank premises and equipment (112,480) (113,071)
Purchase of real estate 0 (43,500)
Proceeds from sale of other real estate 102,841 26,898
Improvements to other real estate (3,053) 0
Proceeds from sale of fixed asset 1,800 4,000
------------- -------------
Net cash used in investing activities $ (9,894,687) $ (3,820,845)
------------- -------------
Cash flows from financing activities:
Net change in demand and savings deposits 4,276,234 (2,414,067)
Net change in time deposits 4,692,608 3,119,046
Dividends paid (209,125) (208,750)
Retirement of stock (7,000) 0
Exercise of stock options 552 0
------------- -------------
Net cash provided (used) by financing activities $ 8,753,269 $ 496,229
------------- -------------
Net increase (decrease) in cash and cash equivalents (426,034) (2,878,370)
Cash and cash equivalents at beginning of period 5,907,523 7,859,152
------------- -------------
Cash and cash equivalents at end of period $ 5,481,489 $ 4,980,782
============= =============
</TABLE>
See accompanying notes to consolidated financial statements.
3
<PAGE>
COMMUNITY TRUST FINANCIAL SERVICES CORPORATION
Consolidated Statement of Cash Flows, continued
(Unaudited)
<TABLE>
<CAPTION>
Six Months Ended
June 30, June 30,
1996 1995
------------- -------------
<S> <C> <C>
Supplemental disclosures of cash flow information:
Cash paid during the period for:
Interest 1,188,991 897,649
Noncash investing activities:
Transfers of loans to other real estate 0 21,000
Financed sales of other real estate 0 24,975
Change in unrealized gain/(loss) on securities available
for sale, net of tax of $107,176 and $72,292 (188,287) 251,093
</TABLE>
See accompanying notes to consolidated financial statements.
4
<PAGE>
COMMUNITY TRUST FINANCIAL SERVICES CORPORATION
----------------------------------------------
Notes to Consolidated Financial Statements
1. Basis of Presentation
---------------------
The consolidated financial statements include the accounts of Community
Trust Financial Services Corporation (the Company), its wholly-owned
subsidiaries, Community Trust Bank (the Bank) and Metroplex Appraisals, Inc.
(Metroplex), and its majority-owned subsidiary Community Loan Company (CLC).
All significant intercompany accounts and transactions have been eliminated in
consolidation.
Effective September 1, 1995, the Company established CLC as
a non-bank subsidiary engaged in the consumer finance business in Woodstock,
Georgia. Effective April 1, 1996, CLC acquired two additional consumer finance
offices located in Rockmart, Georgia, and Rossville, Georgia. The Company owns
75% of CLC's outstanding capital stock. The remaining 25% of CLC's outstanding
capital stock is owned by an individual who is employed as President of CLC.
The Company has helped finance the operations of CLC through a revolving line of
credit with a maximum availability of $1,000,000.
The consolidated financial information furnished herein reflects all
adjustments which are, in the opinion of management, necessary to present a fair
statement of the Company's financial position as of June 30, 1996 and the
results of its operations and cash flows for the periods covered herein. All
such adjustments are of a normal recurring nature.
2. Accounting for Impairment of a Loan
-----------------------------------
As of January 1, 1995, the Company adopted SFAS 114, "Accounting by
Creditors for Impairment of a Loan." SFAS 114 requires that impaired loans be
measured based on the present value of expected future cash flows discounted at
the loan's effective interest rate, which is the contractual interest rate
adjusted for any deferred loan fees or cost, premium or discount existing at the
inception or acquisition of the loan, or at the loan's observable market price,
or at the fair value of the collateral of the loan if the loan is collateral
dependent. As of January 1, 1995, the Company adopted SFAS No. 118, "Accounting
by Creditors for Impairment of a Loan-Income Recognition and Disclosures" which
amends SFAS 114 to require information about the recorded investment in certain
impaired loans and eliminates its provisions regarding how a creditor should
report income on an impaired loan. SFAS 118 allows creditors to use existing
methods for recognizing income on impaired loans, including methods used by
certain industry regulators. As of the date of adoption, and as of June 30,
1996, the impact of SFAS 114 and SFAS 118 is not material to the Company's
consolidated financial statements.
3. Earnings Per Share
------------------
Earnings per share amounts are based on the weighted average number of
shares outstanding during the period.
5
<PAGE>
Item 2.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
For the Six Month Period Ended June 30, 1996
Management's discussion and analysis of financial condition and results of
operations analyzes the material changes in the consolidated balance sheets and
statements of earnings presented herein for Community Trust Financial Services
Corporation (the Company). Unless otherwise indicated, the term Company
includes Community Trust Bank (the Bank), Metroplex Appraisals, Inc.
(Metroplex), and Community Loan Company (CLC). Metroplex, located in Hiram,
Georgia, is a wholly-owned non-bank subsidiary of the Company which performs
appraisals of real and personal property. CLC is a majority-owned subsidiary
which is engaged in the consumer finance business with offices in Woodstock,
Georgia, Rockmart, Georgia, and Rossville, Georgia. The financial data analyzed
herein is not significantly affected by the operations of Metroplex or CLC.
Management anticipates that neither Metroplex nor CLC will have a significant
impact on the Company's earnings and performance during 1996.
Financial Condition
- -------------------
Gross loans during the first six months of 1996 increased approximately
$9,715,565 or 24.98% over the total gross loans at December 31, 1995, as
compared to an increase of $1,891,122, or 5.42%, for the same six month period
ended June 30, 1995. Management believes that the increase in loan growth was
due primarily to an increase in lending personnel, thereby allowing the Bank to
better serve the growing Paulding County market, and the markets of surrounding
counties. With the increase in lending personnel, the Bank has also increased
its emphasis on lending to small businesses. The Bank opened a third branch in
January 1996 that is located in a segment of Paulding County which is
experiencing rapid growth in residential population. Additionally, the Bank has
a new loan product which was introduced in the third quarter of 1995, targeting
consumer customers by offering credit card services with no annual fee at
reasonable rates. Additionally, automobile loans were promoted in the first and
second quarter of 1996 with a competitive rate. Since CLC only began operations
on September 1, 1995, and since it operates from three relatively small offices,
its gross loans, totaling approximately $914,822, or 1.88% of the Company's
gross loans, do not significantly affect the financial data analyzed. Although
Management anticipates growth in CLC's total loans , the subsidiary will have
only a minimal impact on the Company's balance sheet. Management anticipates
some continued increase in the Bank's loan growth for 1996 primarily due to its
increased marketing efforts which are designed to attract new borrowers in its
primary lending area and to provide additional loan products to its existing
borrowers. Management continues to strive for consistent loan volume while
meeting the conservative criteria set by its loan policy.
The Bank's increase in gross loans for the first six months of 1996 was
funded primarily through an increase in deposits. Total deposits during the
first six months of 1996 increased approximately $8,968,842, or 14.65%, from
$61,235,289 at December 31, 1995 to $70,204,131 at June 30, 1996. This
relatively swift growth in total deposits was due primarily to significant
changes in deposit balances maintained by some of the Bank's large depositors.
Management is monitoring core deposits and customer relationships in an effort
to maintain overall deposit growth.
Results of Operations
- ---------------------
Interest Income
- ---------------
Interest income for the first six months of 1996 was $3,233,845,
representing an increase of $601,045, or 22.83% over the same period in 1995.
This increase was primarily attributable to the increase in the Company's total
interest earning assets to $70,491,524 for the period ended June 30, 1996 as
compared to $58,419,764 for the same period in 1995. The yield on interest-
earning assets was 9.29% for the period ended June 30, 1996, as compared to
9.22% for the same period in 1995. Investment securities during the first six
months of 1996 decreased by approximately $123,264, or .60% compared to total
investment securities held at December 31, 1995.
6
<PAGE>
Additionally, the Company holds approximately $3,068,857 or 15.15% of its
investment portfolio in mortgage-backed securities. These mortgage-backed
securities are subject to being prepaid in part or in whole. Because a premium
was paid for the purchase of some of these mortgage-backed securities, an
accelerated payback can decrease earnings through faster amortization of the
premium. Mortgage-backed securities also may be subject to a slowdown in
repayments, especially in a rising rate environment. This type of risk, called
extension risk, is not significant since the majority of the mortgage-backed
securities owned by the Company are variable rate securities or have a final
maturity of less than five years. Management monitors the pre-payment risk and
extension risk associated with the Company's investments in mortgage-backed
securities in an effort to maintain an overall acceptable level of risk.
Although the Bank loses some interest income due to non-performing assets,
defined as loans placed on non-accrual status, real estate acquired through
foreclosure, and property acquired through repossession, management considers
the Bank's level of non-performing assets to be at an acceptable level. Non-
performing assets totaled approximately $52,927, or 0.07% of total assets as of
June 30, 1996, as compared to $273,696, or 0.41% of total assets as of December
31, 1995.
Interest Expense
- ----------------
Interest expense for the first six months of 1996 increased $240,753, or
24.33% as compared to the same period in 1995. This increase, as compared to
the $8,359,232, or 16.05% increase in interest-bearing deposits for that same
time period, is primarily attributable to the Company's higher cost of funds
during the first six months of 1996 as compared to the same period in 1995,
resulting from higher market interest rates. In response to these increases,
the Company found it necessary to increase rates paid on deposits but continued
to seek opportunities to maintain its net interest margin (net interest income
divided by average interest-earning assets). The Company's net interest margin
as of June 30, 1996 was 5.61%, as compared to 5.76% as of June 30, 1995,
primarily as a result of the Company's efforts to maintain its lower cost of
funds. However, as market rates on interest-bearing deposits have risen during
the first six months of 1996, the Company has continued to raise certain deposit
rates to stay competitive with its peers.
Other Income
- ------------
Other income increased approximately $113,550, or 27.31%, during the first
six months of 1996 as compared to the same period in 1995 primarily due to
increased insurance commissions and service charges and fees. Service charges
and fee income increased approximately $38,742, or 10.82%, during the first six
months of 1996 as compared to the same period in 1995, primarily due to an
increase in the number of deposit accounts. Insurance commissions increased
approximately $44,922, or 255.30%, during the first six months of 1996 as
compared to the same period in 1995 primarily due to income derived from the
subsidiary CLC. Consumer finance companies typically sell credit life and
automobile liability insurance to many of their customers.
Other Expenses
- --------------
Other expenses for the first six months of 1996 increased $336,224, or
24.66%, as compared to the first six months of 1995. This increase is
attributable primarily to an increase in salaries and employee benefits caused
by the (i) Bank's need for additional human resources due to the growing
customer base of the Bank, (ii) salary and benefit costs of CLC, and (iii)
routine salary increases. Occupancy expense increased by approximately $53,920,
or 26.00% for the first six months of 1996 as compared to the same period for
1995, primarily due to the addition of the Bank's Brownsville branch and CLC's
three offices.
Capital
- -------
The Company is subject to regulatory capital requirements imposed by the
Georgia Department of Banking and Finance (the "Department"). The Department
has established a minimum level of capital to total assets of 5%, with certain
adjustments, on a consolidated basis for bank holding companies. At June 30,
1996, the Company's ratio of capital to total average assets was 9.34%, using
the Department's guidelines. Under federal law, the Company and the Bank are
required to maintain a ratio of total capital to risk weighted assets of at
least 8.0%, of which at least one-half must be so-called Tier One capital.
Under applicable federal regulations and interpretations thereof, the Bank's
7
<PAGE>
ratio of total capital to risk weighted assets at June 30, 1996 was 10.02%, and
its ratio of Tier One capital to risk weighted assets was 8.80%. Under
applicable federal regulations and interpretations thereof, the Company's ratio
of total capital to risk weighted assets at June 30, 1996 was 11.90%, and its
Tier One capital to risk weighted assets was 10.69%. Additionally, under
federal law, all but the most highly rated banks and bank holding companies are
required to maintain a minimum ratio of Tier One capital to total average assets
(Tier One leverage ratio) of 4.0% to 5.0%, including the most highly-rated banks
and bank holding companies that are anticipating or experiencing significant
growth. Three percent is the minimum Tier One leverage ratio required for the
most highly-rated banks and bank holding companies with no plans to expand. The
Bank substantially exceeds its Tier One leverage ratio requirement with a Tier
One leverage ratio of 6.51% as of June 30, 1996. The Company also substantially
exceeds its Tier One leverage ratio requirement with a Tier One leverage ratio
of 7.92% as of June 30, 1996. Through its policy of controlled growth, the
Company intends to maintain capital in excess of the required minimum in order
to support future growth.
Liquidity
- ---------
Liquidity represents the Company's ability to meet both loan commitments
and deposit withdrawals. As of June 30, 1996, the Bank's liquidity ratio
(defined as net cash, short term assets, and marketable assets divided by net
deposits and short term liabilities) was 27.40%, as compared to 34.76% at June
30, 1995. The Bank maintains two lines of credit to borrow fed funds that total
$3,000,000 in order to enhance liquidity. The Bank is a member of the Federal
Home Loan Bank of Atlanta and borrowings are also available through that
relationship. The amount of that credit opportunity fluctuates based on
criteria set by the Federal Home Loan Bank. Additionally, in order to enhance
liquidity at the holding company level, the Company has obtained a $2,500,000
revolving credit facility.
8
<PAGE>
COMMUNITY TRUST FINANCIAL SERVICES CORPORATION
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
The Company held its annual meeting of stockholders on April
17, 1996. Two proposals concerning the election of directors
and the ratification of appointment of independent accountants
were voted on and approved
Item 5. Other Information
In February 1996, the Company filed a notice with both the
Federal Reserve Bank of Atlanta and the Georgia Department of
Banking and Finance (the "Department") of CLC's intention to
purchase the assets of two existing consumer finance companies
located in Rossville, Georgia, and Rockmart, Georgia. The non-
bank subsidiary, CLC, has been engaged in the consumer finance
business in Woodstock, Georgia, an activity which is
permissable for a bank holding company under applicable Federal
Reserve regulations, since September 1995. The Department and
the Federal Reserve approved the acquisitions in March 1996,
and said purchases were consumated effective April 1, 1996.
Item 6.a Exhibits
Exhibit
Number Description
------ -----------
27 Financial Data Schedule, which is submitted
electronically to the Securities and Exchange
Commission for information only and not filed.
Item 6.b Reports on Form 8-K
Not applicable
9
<PAGE>
COMMUNITY TRUST FINANCIAL SERVICES CORPORATION
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.
Community Trust Financial Services Corporation
----------------------------------------------
(Registrant)
DATE: August 9, 1996 /s/ Ronnie L. Austin
------------------------------
Ronnie L. Austin, President
and Chief Executive Officer
(Duly Authorized Officer)
DATE: August 9, 1996 /s/ Angel J. Byrd
------------------------------
Angel J. Byrd
(Principal Accounting Officer)
10
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 9
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> JUN-30-1996
<CASH> 4,121,489
<INT-BEARING-DEPOSITS> 0
<FED-FUNDS-SOLD> 1,360,000
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 20,262,796
<INVESTMENTS-CARRYING> 20,262,796
<INVESTMENTS-MARKET> 20,262,796
<LOANS> 48,613,728
<ALLOWANCE> 670,227
<TOTAL-ASSETS> 77,787,403
<DEPOSITS> 70,204,131
<SHORT-TERM> 0
<LIABILITIES-OTHER> 1,471,177
<LONG-TERM> 0
0
0
<COMMON> 2,088,922
<OTHER-SE> 4,019,943
<TOTAL-LIABILITIES-AND-EQUITY> 77,787,403
<INTEREST-LOAN> 2,574,420
<INTEREST-INVEST> 598,674
<INTEREST-OTHER> 60,751
<INTEREST-TOTAL> 3,233,845
<INTEREST-DEPOSIT> 1,217,041
<INTEREST-EXPENSE> 1,230,245
<INTEREST-INCOME-NET> 2,003,600
<LOAN-LOSSES> 93,678
<SECURITIES-GAINS> (8,233)
<EXPENSE-OTHER> 1,699,749
<INCOME-PRETAX> 739,431
<INCOME-PRE-EXTRAORDINARY> 739,431
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 480,820
<EPS-PRIMARY> .58
<EPS-DILUTED> .56
<YIELD-ACTUAL> 0
<LOANS-NON> 0
<LOANS-PAST> 0
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 0
<CHARGE-OFFS> 0
<RECOVERIES> 0
<ALLOWANCE-CLOSE> 0
<ALLOWANCE-DOMESTIC> 0
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
