<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON D.C. 20549
----------------------------------
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the Quarterly Period Ended June 30, 1997
Commission File Number: 0-19609
-------
FirstFed Bancorp, Inc.
------------------------------------------------------
(Exact name of registrant as specified in its charter)
Delaware 63-1048648
- ---------------------------------------- -------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
1630 Fourth Avenue North
Bessemer, Alabama 35020
- ---------------------------------------- ----------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (205) 428-8472
--------------
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 the latest practicable date.
Class Outstanding at July 25, 1997
- ---------------------------- ----------------------------
Common Stock, $.01 par value 1,150,998 shares
<PAGE>
FIRSTFED BANCORP, INC.
----------------------
FINANCIAL INFORMATION
---------------------
Page
----
FINANCIAL STATEMENTS:
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
AS OF JUNE 30, 1997 AND MARCH 31, 1997..................................... 2
CONDENSED CONSOLIDATED STATEMENTS OF INCOME FOR THE THREE
MONTHS ENDED JUNE 30, 1997 AND 1996........................................ 3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE
THREE MONTHS ENDED JUNE 30, 1997 AND 1996.................................. 4
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS......................... 5
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS.................................................. 7
SIGNATURES .................................................................. 12
THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FURNISHED HAVE NOT BEEN AUDITED
BY INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS, BUT REFLECT, IN THE OPINION OF
MANAGEMENT, ALL ADJUSTMENTS NECESSARY FOR A FAIR PRESENTATION OF FINANCIAL
CONDITION AND THE RESULTS OF OPERATIONS FOR THE PERIODS PRESENTED.
i.
<PAGE>
FIRSTFED BANCORP, INC.
----------------------
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
--------------------------------------------------------
(Dollar amounts in thousands)
<TABLE>
<CAPTION>
ASSETS June 30, March 31,
1997 1997
-------- ---------
<S> <C> <C>
Cash and Cash Equivalents:
Cash on hand and in banks $ 4,772 $ 5,411
Interest-bearing deposits in other banks 2,049 4,354
Federal funds sold 9,275 4,200
-------- --------
16,096 13,965
-------- --------
Securities available for sale, at fair value 10,151 10,330
Assets held for sale, at lower of cost or market 402 331
Securities, at amortized cost, fair value of
$5,420 and $6,395, respectively 5,371 6,373
Mortgage-backed securities, at amortized cost,
fair value of $12,519 and $13,382, respectively 12,552 13,329
Loans receivable, net 124,397 126,849
Land, buildings and equipment, net 2,669 2,642
Goodwill 1,470 1,487
Real estate owned 763 131
Real estate held for development 931 931
Accrued interest receivable 1,418 1,450
Other assets 308 306
-------- --------
$176,528 $178,124
======== ========
</TABLE>
LIABILITIES AND STOCKHOLDERS' EQUITY
<TABLE>
<CAPTION>
Liabilities:
<S> <C> <C>
Deposits $156,122 $157,970
Borrowed funds 1,000 1,000
Accrued interest payable 132 156
Income taxes payable 369 318
Dividends payable 154 123
Other liabilities 2,130 634
-------- --------
159,907 160,201
-------- --------
Stockholders' Equity:
Common stock, $.01 par value 3,000,000 shares
authorized, 1,481,730 shares issued and
1,147,848 shares outstanding 15 14
Paid-in capital 6,621 6,601
Retained earnings 14,412 14,256
Treasury stock (4,320) (2,781)
Unearned compensation (76) (95)
Unrealized loss on securities available
for sale, net (31) (72)
-------- --------
16,621 17,923
-------- --------
$176,528 $178,124
======== ========
See accompanying notes to condensed consolidated financial statements.
</TABLE>
2
<PAGE>
FIRSTFED BANCORP, INC.
----------------------
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
-------------------------------------------
(Dollar amounts in thousands, except per share amounts)
<TABLE>
<CAPTION>
Three Months
Ended
June 30
------------------------
1997 1996
------------ ----------
<S> <C> <C>
INTEREST INCOME:
Interest and fees on loans $ 2,852 $ 2,774
Interest on mortgage-backed
securities 207 84
Interest and dividends on
securities 261 220
Other interest income 94 105
---------- ----------
Total interest income 3,414 3,183
---------- ----------
INTEREST EXPENSE:
Interest on deposits 1,806 1,693
Interest on other borrowings 18 31
---------- ----------
Total interest expense 1,824 1,724
---------- ----------
Net interest income 1,590 1,459
Provision for loan losses 51 30
---------- ----------
Net interest income after
provision for loan losses 1,539 1,429
---------- ----------
NONINTEREST INCOME:
Fees for customer service 179 142
Miscellaneous operating and
non-operating income, net 50 52
---------- ----------
Total noninterest income 229 194
---------- ----------
NONINTEREST EXPENSES:
Salaries and employee benefits 598 533
Office building and equipment
expenses 134 130
Deposit insurance expense 23 80
Amortization of goodwill 27 28
Other operating expenses 325 297
---------- ----------
Total noninterest expenses 1,107 1,068
---------- ----------
Income before income taxes 661 555
PROVISION FOR INCOME TAXES 227 195
---------- ----------
Net Income $ 434 $ 360
========== ==========
EARNINGS PER SHARE (Note 2) $ .34 $ .29
========== ==========
AVERAGE NUMBER OF SHARES
OUTSTANDING 1,278,900 1,242,572
========== ==========
DIVIDENDS DECLARED PER SHARE $ .225 $ .18
========== ==========
(Note 2)
</TABLE>
See accompanying notes to condensed consolidated financial statements.
3
<PAGE>
FIRSTFED BANCORP, INC.
----------------------
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
-----------------------------------------------
(Dollar amounts in thousands)
<TABLE>
<CAPTION>
Three Months Ended
June 30
------------------
CASH FLOWS FROM OPERATING ACTIVITIES: 1997 1996
-------- --------
<S> <C> <C>
Net income $ 434 $ 360
Adjustments to reconcile net income
to net cash provided by operating activities:
Depreciation 63 67
Amortization of unearned compensation 19 58
Amortization of premiums, net 18 20
Accretion of deferred income (12) (29)
Loan fees (cost) deferred, net (30) 121
Provision for loan losses 51 30
Net loans originated for sale (71) (839)
Amortization of goodwill 17 28
Change in assets and liabilities:
(Increase) decrease in accrued interest receivable 32 (50)
(Increase) decrease in other assets (2) 44
Decrease in accrued interest payable (24) (28)
Increase in income taxes payable 19 95
Increase (decrease) in other liabilities 1,496 (31)
------- -------
Net cash provided by (used in) operating
activities 2,010 (154)
------- -------
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from maturities of securities
available for sale 250 400
Purchase of securities available for sale - (1,080)
Proceeds from maturities of securities 1,002 1,060
Purchase of securities - (1,995)
Principal payments received on mortgage-backed
securities 761 172
Purchase of mortgage-backed securities - (2,796)
Proceeds from sale of repossessed assets - 5
Net loan repayments (originations) 1,825 (97)
Capital expenditures (104) (33)
------- -------
Net cash provided by (used in) investing
activities 3,734 (4,364)
------- -------
CASH FLOWS FROM FINANCING ACTIVITIES:
Increase (decrease) in deposits, net (1,848) 10,105
Payment of FHLB Advances - (176)
Proceeds from exercise of stock options 21 35
Dividends paid (247) (195)
Purchase of treasury stock (1,539) -
------- -------
Net cash provided by (used in)
financing activities (3,613) 9,769
------- -------
NET INCREASE IN CASH & CASH EQUIVALENTS 2,131 5,251
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 13,965 12,114
------- -------
CASH AND CASH EQUIVALENTS AT END OF PERIOD $16,096 $17,365
======= =======
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid during the period for-
Income taxes $ 208 $ 152
======= =======
Interest $ 1,848 $ 1,752
======= =======
Noncash transactions-
Transfer of loans receivable to real estate
owned $ 618 $ 27
Declaration of cash dividends 154 122
Decrease (increase) in unrealized loss on securities
available for sale, net of deferred tax 41 (55)
======= =======
</TABLE>
See accompanying notes to condensed consolidated financial statements.
4
<PAGE>
FIRSTFED BANCORP, INC.
----------------------
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
----------------------------------------------------
1. BASIS OF PRESENTATION:
----------------------
FirstFed Bancorp, Inc. (the "Company") is the holding company and sole
shareholder of First Federal Savings Bank ("First Federal") and First State
Corporation ("FSC"). FSC was acquired by the Company on January 2, 1996, and is
the sole shareholder of First State Bank of Bibb County ("First State"). First
Federal and First State are referred to herein collectively as the "Banks".
The accompanying condensed consolidated financial statements as of June 30, 1997
(unaudited) and March 31, 1997, and for the three months ended June 30, 1997 and
1996 (unaudited), include the accounts of the Company and the Banks. All
significant intercompany transactions and accounts have been eliminated in
consolidation.
In the opinion of management, all adjustments (none of which are other than
normal recurring accruals) necessary for a fair presentation of the results of
such interim periods have been included. The results of operations for the
three months ended June 30, 1997, are not necessarily indicative of the results
of operations which may be expected for the entire year.
These unaudited condensed financial statements should be read in conjunction
with the Consolidated Financial Statements and the notes thereto included in the
Company's Annual Report on Form 10-K for the year ended March 31, 1997. The
accounting policies followed by the Company are set forth in the summary of
Significant Accounting Policies in the Company's March 31, 1997 Consolidated
Financial Statements.
2. EARNINGS AND DIVIDENDS PER SHARE:
---------------------------------
In February 1997, the FASB issued SFAS No. 128, "Earnings per Share." This
Statement established standards for computing and presenting earnings per share
("EPS"). This Statement will simplify the standards for computing EPS
previously found in APB Opinion No. 15, "Earnings per Share," and will make them
comparable to international EPS standards. It will replace the presentation of
primary EPS with a presentation of basic EPS and will require dual presentation
of basic and diluted EPS on the face of the income statement and disclosure of a
reconciliation of the numerator and denominator of the basic EPS computation to
the numerator and denominator of the diluted EPS computation. This Statement is
effective for financial statements issued for periods ending after December 15,
1997, including interim periods, and requires restatement of all prior-period
EPS data presented. The Company will adopt the Statement at fiscal year-end
1998. Had the Company implemented SFAS No. 128 on April 1, 1996, the pro forma
EPS results would have been as follows:
5
<PAGE>
<TABLE>
<CAPTION>
Three Months Three Months
Ended June 30, 1997 Ended June 30, 1996
------------------------------------- ----------------------------------
Dilutive Dilutive
Effect of Effect of
Options Options
Basic Issued Diluted Basic Issued Diluted
---------- ---------- ---------- ---------- --------- ----------
<S> <C> <C> <C> <C> <C> <C>
Net Income $ 434,000 --- $ 434,000 $ 360,000 --- $ 360,000
Shares available to
common shareholders 1,229,167 49,733 1,278,900 1,216,496 26,076 1,242,572
---------- ---------- ---------- ---------- --------- ----------
Earnings per share $ 0.35 --- $ 0.34 $ 0.30 --- $ 0.29
========== ========== ========== ========== ========= ==========
</TABLE>
Dividends declared for the quarter ended June 30, 1997, consisted of a $.125 per
share quarterly dividend and $.10 per share special dividend.
6
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS
------------------------------------
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
------------------------------------------------
Comparison of Financial Condition as of June 30, 1997, and March 31, 1997
- -------------------------------------------------------------------------
All dollar amounts, except per share amounts, included hereafter in Management's
Discussion and Analysis are in thousands.
Primarily due to a decrease in mortgage-backed securities and overnight
investments, the Company's total assets at June 30, 1997, decreased to $176,528,
a decrease of $1,596 or 0.9%, from total assets of $178,124 at March 31, 1997.
Securities available for sale and held to maturity decreased in the aggregate
$1,181, or 7.1%, to $15,522 at June 30, 1997, primarily due to government agency
notes totaling $1,252 maturing or being called prior to maturity.
Loans receivable, net, at June 30, 1997, were $124,397, a decrease of $2,452, or
1.9%, from $126,849 at March 31, 1997. The decrease in loans receivable, net,
was primarily due to repayments and the origination of loans for sale in the
secondary market rather than for retention in the Banks' portfolios
The Company's consolidated allowance for loan losses increased slightly to $736
at June 30, 1997, from $733 at March 31, 1997. This increase was primarily due
to a provision of $51 offset by the net of charge-offs over recoveries of $48.
Nonperforming loans at June 30, 1997, decreased to $728, or 0.59%, of loans
receivable from $1,900, or 1.50%, of loans receivable at March 31, 1997. A
portion of the nonperforming loans at March 31, 1997, were foreclosed prior to
June 30, 1997, resulting in an increase in real estate owned at June 30, 1997.
In addition, several of the nonperforming loans at March 31, 1997, were paid
current by June 30, 1997. At June 30, 1997, there were no material loans not
included in nonperforming loans which represent material credits about which
management was aware of any information which caused management to have serious
doubts as to the ability of such borrowers to comply with the loan repayment
terms.
Real estate owned was $763 at June 30, 1997, an increase of $632 from March 31,
1997, as a result of foreclosures on loans that had been nonperforming at March
31, 1997. The increase in real estate owned from the unusually low level at
March 31, 1997, is primarily the result of three real estate properties. Based
on an evaluation of the properties, management does not believe that the Company
will suffer any loss upon their disposition.
Deposits decreased $1,848, or 1.2% to $156,122 at June 30, 1997, from $157,970
at March 31, 1997. The slight decrease in deposits is primarily the result of
variations in the balances of commercial accounts.
7
<PAGE>
The increase in other liabilities of $1,496, to $2,130, at June 30, 1997, was
the result of recording a payable for the purchase of 87,934 shares of the
Company's stock to be held as treasury stock. The stock traded prior to June
30, 1997, and settled on July 10, 1997.
The Company had stockholders' equity of $16,621 as of June 30, 1997, a decrease
of $1,302, or 7.3%, from $17,923 as of March 31, 1997. The net decrease was
primarily attributable to the purchase of treasury stock totaling $1,539, and
dividends of $.225 per share that included a special dividend of $.10 per share,
declared during the first quarter, totaling $277, net of net income for the
three months ended June 30, 1997, of $434.
Liquidity and Capital Resources
- -------------------------------
Traditionally, the Banks' principal sources of funds have been deposits,
principal and interest payments on loans and mortgage-backed securities, and
proceeds from interest on and maturities of investments. In addition, First
Federal has borrowing ability from the Federal Home Loan Bank of Atlanta if the
need for additional funds arises. At June 30, 1997, the Banks had commitments to
originate and fund loans of $5.7 million. The Banks anticipate that they will
have sufficient funds available to meet their current commitments.
First Federal is required by regulation to maintain minimum levels of liquid
assets. The liquidity of First Federal at June 30, 1997, was 13.0%, which
exceeded the applicable 5.0% liquidity requirement.
Under applicable regulations, First Federal, First State and the Company are
each required to maintain minimum capital ratios. Set forth below are actual
capital ratios and the minimum regulatory capital requirements as of June 30,
1997.
<TABLE>
<CAPTION>
First Federal First State The Company
-------------- ------------- ---------------
<S> <C> <C> <C> <C> <C> <C>
RISK-BASED CAPITAL RATIOS
Tier 1 Capital
Stockholders' Equity less goodwill $11,336 8.20% $3,245 8.83% $ 15,182 8.67%
Minimum Required 5,532 4.00% 1,470 4.00% 7,003 4.00%
------- ----- ------ ----- ------- -----
Excess $ 5,804 4.20% $1,775 4.83% $ 8,179 4.67%
======= ===== ====== ===== ======== =====
Total Capital
Tier 1 Capital plus allowances
for loan losses $11,764 14.47% $3,505 16.88% $ 15,918 15.60%
Minimum Required 6,502 8.00% 1,340 8.00% 8,164 8.00%
------- ----- ------ ----- -------- -----
Excess $ 5,262 6.47% $2,165 8.88% $ 7,754 7.60%
======= ===== ====== ===== ======== =====
Total Risk-weighted assets $81,281 $20,770 $102,051
======= ====== ========
LEVERAGE RATIOS
Tier 1 Capital $11,336 8.20% $3,245 8.83% $15,182 8.67%
Minimum Leverage Requirement 4,150 3.00% 1,103 3.00% 5,252 3.00%
------- ----- ------ ----- ------- -----
Excess $ 7,186 5.20% $2,142 5.83% $ 9,930 5.67%
======= ===== ====== ===== ======= =====
</TABLE>
8
<PAGE>
<TABLE>
<CAPTION>
First Federal
-----------------
TANGIBLE CAPITAL RATIO
<S> <C> <C>
Tangible Capital $11,336 8.20%
Tangible Capital Requirement 2,075 1.50%
------- ----
Excess $ 9,261 6.70%
======= ====
</TABLE>
Management is not aware of any trends, events or uncertainties that will have or
are reasonably likely to have a material effect on the Company's or the Banks'
liquidity, capital resources or operations.
Results of Operations - Comparison of the Three Months Ended June 30, 1997 and
- ------------------------------------------------------------------------------
1996
- ----
Net income for the three months ended June 30, 1997, was $434, an increase of
$74, or 20.6%, from net income of $360 for the three months ended June 30, 1996.
The increase was primarily attributable to an increase in the interest rate
spread.
Interest Income
- ---------------
Total interest income increased $231, or 7.3%, to $3,414 for the three months
ended June 30, 1997. This increase was partially the result of a 4.3% increase
in the average balance of interest-earning assets during the three months ended
June 30, 1997, as compared to the three months ended June 30, 1996. This
increase was also due to an increase in the average yield on interest-earning
assets to 8.3% during the three months ended June 30, 1997, from 8.1% for the
corresponding quarter of the previous year.
Interest income on loans increased $78, or 2.8% to $2,852 during the three
months ended June 30, 1997, from $2,774 for the three months ended June 30,
1996. The increase in interest income on loans was primarily attributable to
the increase in the average yield on loans to 9.0% for the three months ended
June 30, 1997, compared to 8.7% for the corresponding quarter of the previous
year. The increase was net of a slight decrease in the average balance of loans
during the first quarter of fiscal 1998 as compared to the first quarter of
fiscal 1997.
Interest earned on mortgage-backed securities increased $123, or 146.4%, to
$207 for the three months ended June 30, 1997, from $84 for the corresponding
three months ended June 30, 1996. The increase was primarily attributable to an
increase in the average balance of mortgage-backed securities during the quarter
ended June 30, 1997, as compared to the quarter ended June 30, 1996, as a result
of purchases net of principal repayments and prepayments.
Interest and dividends on the securities portfolio increased $41, or 18.6%, for
the three months ended June 30, 1997, as compared to the same period in fiscal
1997, reflecting slight increases in the average balance of securities and the
average yield.
9
<PAGE>
Interest Expense
- ----------------
Interest expense for the quarter ended June 30, 1997, increased $100, or 5.8%,
to $1,824 from the quarter ended June 30, 1996. The increase was primarily
attributable to an increase in the average balance of deposits and a slight
increase in average yield to 4.67% at June 30, 1997.
Net Interest Income
- -------------------
Net interest income for the quarter ended June 30, 1997, increased $131, or
9.0%, to $1,590 from the first quarter of fiscal 1997 level of $1,459. This
increase was due in part to an increase in the average net interest spread to
3.6% for the first quarter of fiscal 1998 from 3.4% for the first quarter of
fiscal 1997. The increase was net of a slight decrease in the average balance
of interest-earning assets and interest-bearing liabilities during the first
quarter of fiscal 1998 compared to the first quarter of fiscal 1997. The net
interest margin increased to 3.9% in the first quarter of fiscal 1998 from 3.7%
for the first quarter of fiscal 1997.
Provision for Loan Losses
- -------------------------
Management increased the Company's total allowance for loan losses by a
provision of $51 during the quarter ended June 30, 1997. The Banks' allowances
for loan losses were based on management's evaluation of possible losses
inherent in the loan portfolio and consider, among other factors, prior years'
loss experience, economic conditions, distribution of portfolio loans by risk
class and the estimated value of the underlying collateral.
Noninterest Income
- ------------------
Noninterest income during the quarter ended June 30, 1997, increased $35, to
$229, from the fiscal 1997 first quarter level of $194. The increase was
primarily the result of increased service fees.
Noninterest Expenses
- --------------------
Noninterest expenses during the quarter ended June 30, 1997, increased $39 to
$1,107 from the fiscal 1997 first quarter level of $1,068. This reflects no
significant change in expense levels.
Income Taxes
- ------------
The provision for income taxes increased $32, or 16.4%, to $227 for the quarter
ended June 30, 1997, as compared to the corresponding quarter of the prior
fiscal year. The increased tax expense was due primarily to the 19.1% increase
in pretax income from the same period a year ago.
10
<PAGE>
Proposed Legislation
- --------------------
The United States Congress currently is considering several wide-ranging
proposals that would alter the structure, regulation and competitive
relationships of the nation's financial institutions. As consideration of the
proposed legislation is in its early stages, the Company cannot predict whether,
or in what form, any of these proposals will be adopted or the extent to which
the business of the Company or the Banks may be affected thereby.
PART II. OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
From time to time, the Banks are parties to routine legal proceedings occurring
in the ordinary course of business. At June 30, 1997, there were no legal
proceedings to which the Company or the Banks were a party or parties, or to
which any of their property was subject, which were expected by management to
result in a material loss.
ITEM 2. CHANGE 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
None.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits.
None.
(b) Reports on Form 8-K
None.
11
<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.
FIRSTFED BANCORP, INC.
Date: July 28, 1997 /s/ B. K. Goodwin, III
------------- -------------------------
B. K. Goodwin, III,
Chairman of the Board,
Chief Executive Officer
and President
Date: July 28, 1997 /s/ Lynn J. Joyce
------------- -------------------------
Lynn J. Joyce
Vice President, Secretary
and Treasurer
(Principal Financial
Officer)
12
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 9
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> MAR-31-1998
<PERIOD-START> APR-01-1997
<PERIOD-END> JUN-30-1997
<CASH> 4,772
<INT-BEARING-DEPOSITS> 2,049
<FED-FUNDS-SOLD> 9,275
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 10,553
<INVESTMENTS-CARRYING> 17,923
<INVESTMENTS-MARKET> 17,939
<LOANS> 124,397
<ALLOWANCE> 736
<TOTAL-ASSETS> 176,528
<DEPOSITS> 156,122
<SHORT-TERM> 1,000
<LIABILITIES-OTHER> 2,785
<LONG-TERM> 0
0
0
<COMMON> 15
<OTHER-SE> 16,606
<TOTAL-LIABILITIES-AND-EQUITY> 176,528
<INTEREST-LOAN> 2,852
<INTEREST-INVEST> 468
<INTEREST-OTHER> 94
<INTEREST-TOTAL> 3,414
<INTEREST-DEPOSIT> 1,806
<INTEREST-EXPENSE> 1,824
<INTEREST-INCOME-NET> 1,590
<LOAN-LOSSES> 51
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 1,107
<INCOME-PRETAX> 661
<INCOME-PRE-EXTRAORDINARY> 661
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 434
<EPS-PRIMARY> .35
<EPS-DILUTED> .34
<YIELD-ACTUAL> 8.33
<LOANS-NON> 504
<LOANS-PAST> 224
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 733
<CHARGE-OFFS> 68
<RECOVERIES> 20
<ALLOWANCE-CLOSE> 736
<ALLOWANCE-DOMESTIC> 0
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 736
</TABLE>
