<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
(Mark One)
X Quarterly Report under Section 13 or 15(d) of the Securities Exchange Act
- ---
of 1934
For the quarterly period ended June 30, 1996.
-------------
or
___ Transition Report under Section 13 or 15(d) of the Securities Exchange Act
of 1934
For the transition period from _______________ to ________________.
Commission File No. 0-23980
-------
Georgia Bank Financial Corporation
----------------------------------
(Exact name of small business issuer as specified in its charter)
Georgia 58-2005097
------- ----------
(State of Incorporation) (I.R.S. Employer Identification No.)
3530 Wheeler Road, Augusta, Georgia 30909
-----------------------------------------
(Address of principal executive offices)
(706) 738-6990
--------------
(Issuer's telephone number, including area code)
Not Applicable
--------------
(Former name, former address and former fiscal year, if changed since last
report)
Check whether the issuer: (1) filed all reports required to be filed
by Section 13 or 15(d) of the Exchange Act during the past 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
----- -----
APPLICABLE ONLY TO CORPORATE ISSUERS
State the number of shares outstanding of each of the issuer's classes
of common equity, as of the latest practicable date:
1,341,479 shares of common stock, $3.00 par value per share, issued
and outstanding as of June 30, 1996.
Transitional Small Business Disclosure Format (check one): Yes
----
No X
-----
<PAGE>
GEORGIA BANK FINANCIAL CORPORATION
FORM 10-QSB
INDEX
<TABLE>
<CAPTION>
Page
<S> <C>
PART I Financial Information
Item 1. Financial Statements (Unaudited)
Condensed Consolidated Balance Sheets as of June 30, 1996,
and December 31, 1995 2
Condensed Consolidated Statements of Income for the quarter
ended June 30, 1996 and June 30, 1995 and the
six months ended June 30, 1996 and June 30, 1995 3
Condensed Consolidated Statement of Cash Flows for the
six months ended June 30, 1996 and June 30, 1995 4
Notes to Consolidated Financial Statements 5
Item 2. Management Discussion and Analysis of
Financial Condition and Results of Operations 6
PART II Other Information
Item 1. Legal Proceedings *
Item 2. Changes in Securities *
Item 3. Defaults Upon Senior Securities *
Item 4. Submission of Matters to a Vote of Security-Holders 11
Item 5. Other Information *
Item 6. Exhibits and Reports on Form 8-K 12
SIGNATURE 13
</TABLE>
* No information submitted under this caption.
1
<PAGE>
PART I
FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
GEORGIA BANK FINANCIAL CORPORATION AND SUBSIDIARY
Consolidated Balance Sheets
<TABLE>
<CAPTION>
ASSETS
June 30,
1996 December 31,
(Unaudited) 1995
---------------- ---------------
<S> <C> <C>
Cash and due from banks $ 10,650,128 $ 12,725,123
Federal funds sold 5,230,000 -
---------------- ---------------
Cash and cash equivalents 15,880,128 12,725,123
---------------- ---------------
Investment Securities
Available-for-sale 43,439,837 33,434,524
Held-to-maturity (market values of
$2,013,777 and $2,024,126, respectively) 2,014,742 2,014,654
Loans 128,780,198 120,427,011
Allowance for loan losses (1,448,430) (1,335,275)
---------------- ---------------
127,331,768 119,091,736
Premises and equipment, net 8,704,814 8,539,172
Accrued interest receivable 1,395,396 1,354,174
Prepaid expenses 295,707 311,026
Intangible assets 1,016,986 1,158,106
Deferred tax asset, net 410,703 76,140
Other assets 635,599 643,013
---------------- ---------------
$ 201,125,680 $ 179,347,668
================ ===============
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits
Non-interest bearing $ 32,219,547 $ 26,900,509
Interest bearing
NOW accounts 18,501,174 18,959,510
Savings 35,115,432 20,045,474
Money management accounts 20,079,407 16,071,501
Time deposits over $100,000 32,413,156 32,515,699
Other time 41,938,094 42,657,047
---------------- ---------------
180,266,810 157,149,740
Federal funds purchased and securities sold
under repurchase agreements 566,844 1,761,527
Accrued interest and other liabilities 1,391,948 1,357,720
Advances from Federal Home Loan Bank 4,000,000 4,000,000
Notes and bonds payable 213,334 640,000
---------------- ---------------
Total liabilities 186,438,936 164,908,987
Stockholders' equity
Common Stock, par value $3.00; 10,000,000 shares
authorized; shares issued and outstanding of
1,341,479 in 1996 and 1995 4,024,437 4,024,437
Additional paid in capital 7,122,998 7,122,998
Retained Earnings 4,247,415 3,435,381
Unrealized loss on securities available-for-sale
net of deferred income taxes of $385,848 in
1996 and $75,222 in 1995 (708,106) (144,135)
---------------- ---------------
Total stockholders' equity 14,686,744 14,438,681
---------------- ---------------
$ 201,125,680 $ 179,347,668
================ ===============
</TABLE>
See notes to consolidated financial statements.
2
<PAGE>
GEORGIA BANK FINANCIAL CORPORATION AND SUBSIDIARY
Consolidated Statements of Income
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
June 30, June 30,
--------------------------------- -----------------------------------
1996 1995 1996 1995
--------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C>
Interest Income
Loans $ 3,138,095 $ 2,852,282 $ 5,976,582 $ 5,555,931
Investment securities 761,631 546,169 1,407,116 974,596
Federal funds sold 103,054 128,819 211,437 260,821
--------------- --------------- --------------- ---------------
4,002,780 3,527,270 7,595,135 6,791,348
--------------- --------------- --------------- ---------------
Interest Expense
Deposits 1,739,434 1,699,704 3,398,518 3,113,592
Federal funds purchased and securities sold
under repurchase agreements 14,325 7,250 20,673 10,499
Loans and borrowings 72,707 28,453 128,200 117,976
--------------- --------------- --------------- ---------------
1,826,466 1,735,407 3,547,391 3,242,067
--------------- --------------- --------------- ---------------
Net Interest Income 2,176,314 1,791,863 4,047,744 3,549,281
Provision for loan losses 155,000 70,000 220,000 140,000
--------------- --------------- --------------- ---------------
Net interest income after provision for loan losses 2,021,314 1,721,863 3,827,744 3,409,281
--------------- --------------- --------------- ---------------
Non-interest Income
Service charges and fees 485,972 345,005 903,419 675,989
Miscellaneous income 5,480 6,449 11,281 13,847
Investment securities gains (losses) - (3,681) 29,658 (21,317)
--------------- --------------- --------------- ---------------
491,452 347,773 944,358 668,519
--------------- --------------- --------------- ---------------
Non-interest expense
Salaries 735,005 625,002 1,422,541 1,237,009
Employee benefits 173,178 144,170 328,264 289,598
Occupancy 306,078 301,504 617,596 611,474
Other operating expenses 565,643 489,806 1,107,973 966,440
--------------- --------------- --------------- ---------------
1,779,904 1,560,482 3,476,374 3,104,521
--------------- --------------- --------------- ---------------
Income before taxes 732,862 509,154 1,295,728 973,279
Provision for income taxes 274,652 183,438 483,694 359,118
--------------- --------------- --------------- ---------------
Net Income $ 458,210 $ 325,716 $ 812,034 $ 614,161
=============== =============== =============== ===============
Earnings per common share:
Weighted average number of common
shares outstanding 1,341,479 1,341,619 1,341,479 1,333,332
Net income per share $ 0.35 $ 0.24 $ 0.61 $ 0.46
=============== =============== =============== ===============
</TABLE>
See notes to consolidated financial statements.
3
<PAGE>
GEORGIA BANK FINANCIAL CORPORATION AND SUBSIDIARY
Consolidated Statements of Cash Flows
(Unaudited)
<TABLE>
<CAPTION>
Six Months Ended
June 30,
--------
1996 1995
--------------- ---------------
<S> <C> <C>
Cash flows from operating activities
Net Income $ 812,034 $ 614,161
Adjustments to reconcile net income to net cash
provided by operating activities
Depreciation and amortization 487,972 372,299
Provision for loan losses 220,000 140,000
(Gain) loss on sale of investment securities (29,658) 21,317
Amortization (accretion) of premium/discount
on investment securities (12,083) (41,473)
Deferred tax expense 41,418 153,786
Real estate loans originated for sale (12,076,817) (5,241,758)
Proceeds from sale of real estate loans 12,126,367 5,259,650
Net increase in accrued interest receivable (41,222) (124,803)
Net (increase) decrease in prepaid expense 15,319 (41,970)
Net (increase) decrease in other assets (102,142) 294,679
Net increase in accrued interest and other liabilities 34,228 566,267
--------------- ---------------
Net cash provided by operating activities 1,475,416 1,972,155
Cash flows from investing activities
Proceeds from sales and maturities of available-for-sale securities 11,154,142 6,415,697
Proceeds from maturities of held-to-maturity securities - -
Purchase of available-for-sale securities (22,057,754) (14,134,460)
Purchase of held-to-maturity securities - -
Net increase in loans (8,509,582) (6,403,525)
Net purchase of premises and equipment (402,938) 97,589
--------------- ---------------
Net cash used in investing activities (19,816,132) (14,024,699)
--------------- ---------------
Cash flows from financing activities
Net increase in deposits 23,117,070 10,912,189
Net (decrease) increase in federal funds purchased and securities (1,194,683) 51,222
sold under repurchase agreements
Proceeds from issuance of common stock - 237,750
Payments to Federal Home Loan Bank - (2,000,000)
Payments on notes and bonds payable (426,666) (451,667)
Reverse stock split - (1,516)
--------------- ---------------
Net cash provided by financing activities 21,495,721 8,747,978
--------------- ---------------
Net increase (decrease) in cash and cash equivalents 3,155,005 (3,304,566)
Cash and cash equivalents at beginning of period 12,725,123 15,688,610
--------------- ---------------
Cash and cash equivalents at end of period $ 15,880,128 $ 12,384,044
=============== ===============
</TABLE>
See notes to consolidated financial statements.
4
<PAGE>
GEORGIA BANK FINANCIAL CORPORATION AND SUBSIDIARY
Notes to Condensed Consolidated Financial Statements
June 30, 1996 and December 31, 1995
Note 1 - Basis of presentation
The accompanying financial statements include the accounts of Georgia Bank
Financial Corporation and its wholly-owned subsidiary, Georgia Bank & Trust
Company. Significant intercompany transactions and accounts are eliminated in
consolidation.
The financial statements for the six months ended June 30, 1996 and 1995 are
unaudited and have been prepared pursuant to the rules and regulations of the
Securities and Exchange Commission. Certain information and footnote
disclosures normally included in financial statements prepared in accordance
with generally accepted accounting principles have been condensed or omitted
pursuant to such rules and regulations. These consolidated financial statements
should be read in conjunction with the audited consolidated financial statements
and notes thereto included in the Company's annual report for the year ended
December 31, 1995.
The financial information included herein reflects all adjustments (consisting
of normal recurring adjustments) which are, in the opinion of management,
necessary to a fair presentation of the financial position and results for
interim periods.
Note 2 - Stockholders' equity
The Company effected a 1 for 3 reverse stock split on April 21, 1995 that
increased the par value of the common stock to $3.00 per share and reduced the
number of outstanding shares. All weighted average share and per share
information in the accompanying financial statements has been restated to
reflect the effect of the reduced numbers of shares outstanding resulting from
this reverse stock split.
5
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
Net Income
- ----------
The Company's net income for the second quarter of 1996 was $458,000, which was
an increase of $132,000 (40.1%) compared to net income of $326,000 for the
second quarter of 1995. Earnings per share for the quarter were $0.35 in 1996
compared to $0.24 in 1995. Net income for the first six months of 1996 was
$812,000, an increase of $198,000 (32.2%) above net income of $614,000 for the
first six months of 1995. Total assets increased $5 million for the quarter to
$201 million (2.6%) and reflect an increase of $22 million (12.3%) from year end
1995 and $30 million (17.5%) over the comparable period in 1995.
For the second quarter of 1996, as compared to the second quarter of 1995, the
increase in net income resulted from an increase in net interest income of
$384,000 and an increase in non-interest income of $144,000. The total
increases in income were reduced by an increase in non-interest expense of
$219,000 and an increase in the provision for loan losses of $85,000. Income
before taxes increased $224,000 (43.9%) and was partially offset by an increase
in income taxes of $91,000.
The return on average assets for the company was 0.92% for the quarter ended
June 30, 1996, compared to 0.76% for the same period last year. The return on
average stockholder's equity increased to 12.49%, compared to 9.45% for the
comparable period in 1995.
Net Interest Income
- -------------------
Net interest income increased $384,000 (21.5%) during the second quarter and
$498,000 (14.0%) during the first six months over the comparable periods in
1995, primarily due to increases in earning asset balances. Interest earning
assets increased $26.5 million (17.4%) over June 30, 1995 and $23.6 million
(15.1%) over December 31, 1995. Loans, the highest yielding component of
interest earning assets, increased $8.4 million (6.9%) over year end and $14.2
million (12.4%) over the comparable period in 1995. Investment securities
increased $10.0 million (28.2%) over year end and $11.9 million (35.4%) over the
comparable period in 1995. Federal funds sold increased $5.2 million over year
end and $410,000 over June 30, 1995.
Interest Income
- ---------------
Interest income increased $410,000 (11.4%) over the first quarter of 1996 and
$476,000 (13.5%) over the comparable quarter in 1995. Interest income on loans
increased $300,000 (10.6%) over the first quarter of 1996 and $286,000 (10.0%)
over the second quarter in 1995. These increases are the result of
significantly higher volumes that have more than offset the reduction in rates
from the two prior comparable periods. Interest income earned on investment
securities increased $116,000 (18.0%) over the first quarter of 1996 and
$215,000 (39.4%) over the comparable period in 1995. Again, this is the result
of significantly higher volumes. Interest income from Federal funds sold
decreased from both comparable periods as excess funds were utilized to fund
loan growth and purchases of investment securities.
6
<PAGE>
Non-interest Income
- -------------------
Non-interest income (excluding investment securities gains and losses) for the
second quarter was $491,000, an increase of $68,000 (16.0%) above the first
quarter and $140,000 (39.8%) above the second quarter of 1995. The increases
for both periods are the result of significant increases in volumes of deposit
accounts. Total deposits increased $5.9 million (3.3%) during the second
quarter of 1996 and $28.0 million (18.4%) over June 30, 1995.
Non-interest Expense
- --------------------
Non-interest expense totaled $1.8 million for the second quarter, an increase of
$83,000 (4.9%) over the second quarter of 1996 and an increase of $219,000
(14.1%) over the comparable period in 1995. Increases for the respective
periods are attributable to increases in salary and benefits expense of $66,000
(7.2%) and $139,000 (18.0%) respectively, a decrease in occupancy expense of
$5,000 (1.6%) for the quarter and an increase of $5,000 (1.5%) over the
comparable quarter in 1995, and increases in other operating expenses of $23,000
(4.3%) and $76,000 (15.5%), respectively.
The increase are the result of the continued expansion in the Company's local
market that is reflected in additions to staff and the higher occupancy and
operating expense associated with operating six full service offices and the
resulting overall growth of the Company. Also included in the increase are some
pre-opening expenses associated with the Company's seventh office, located in
the Wal-Mart Supercenter at Deans Bridge Road and Interstate 520, which opened
on July 10, 1996. Management continues to focus on expense control and
improving operating efficiencies based upon the significant increases in the
volumes of loans and deposits.
Income Taxes
- ------------
Income taxes in the second quarter of 1996 totaled $275,000, an increase of
$66,000 (31.6%) above the first quarter of 1996 and $91,000 (49.8%) above the
comparable period in 1995. Effective tax rates remained comparable for the
periods.
Asset Quality
- -------------
The table on page 10 shows the current and prior period amounts of non-
performing assets. Non-performing assets were $1.8 million at June 30, 1996,
compared to $1.7 million at March 31, 1996 and $629,000 at June 30, 1995. The
ratio of non-performing loans to total loans and other real estate was 1.41% at
June 30, 1996, compared to 0.71% at December 31, 1995 and 0.55% at June 30,
1995. The increase reflected over the prior periods is the result of the
inclusion in the non-performing category of one additional loan relationship
that, based upon the information available to management, is believed to be
adequately secured by collateral and as to which no material loss is anticipated
but cannot be assured. The control and monitoring of non-performing assets
continues to be management priority.
Loans past due 90 days or more and still accruing decreased to $99,000, down
from $816,000 at March 31, 1996 and $184,000 at June 30, 1995. Based upon the
information available to it, management continues to believe that the value of
the collateral securing each loan is sufficient to cover principal and interest.
7
<PAGE>
Additions to the allowance for loan losses are made periodically to maintain the
allowance at an appropriate level based upon management's analysis of potential
risk in the loan portfolio. The amount of the loan loss provision is
determined by an evaluation of the level of loans outstanding, the level of non-
performing loans, historical loan loss experience, delinquency trends, the
amount of actual losses charged to the reserve in a given period, and an
assessment of present and anticipated economic conditions. A provision for
losses in the amount of $155,000 was charged to expense for the period ended
June 30, 1996. This provision for losses exceeded the net charge-off for the
second quarter which totaled $55,000. At June 30, 1996, the ratio of allowance
for loan losses to total loans was 1.12%, an increase from 1.11% at December 31,
1995 and a decrease from 1.18% at June 30, 1995. Management considers the
current allowance for loan losses appropriate based upon its analysis of the
potential risk in the portfolio, although there can be no assurance that the
assumptions underlying such analysis will continue to be correct.
Liquidity and Capital Resources
- -------------------------------
The Company's liquidity remains adequate to meet operating and loan funding
requirements. The loan to deposit ratio at June 30, 1996 was 71.44% compared to
76.63% at December 31, 1995 and 75.2% at June 30, 1995. This reduction in the
loan to deposit ratio and resulting increase in liquidity is due to the increase
in total deposit balances of $23.1 million for this period while loans increased
$8.4 million.
Shareholders equity to total assets was 7.30% at June 30, 1996 compared to 8.05%
at December 31, 1996 which is reflective of the growth experienced during the
first six months of the year. The capital of the Company and the Bank exceeded
all required regulatory guidelines at June 30, 1996. The Company's Tier 1 risk-
based, total risk-based and the leverage capital ratios were 9.90%, 10.89%, and
6.80% respectively at June 30, 1996. The schedule on page 11 reflects the
current regulatory capital levels in more detail, including comparisons to the
regulatory minimums.
8
<PAGE>
GEORGIA BANK FINANCIAL CORPORATION
CONSOLIDATED FINANCIAL DATA
(Dollars in Thousands)
(Unaudited)
<TABLE>
<CAPTION>
Six Months Ended
June 30,
--------
PROFITABILITY 1996 1995
- ------------- ---- ----
<S> <C> <C>
Return on average assets * 0.92% 0.73%
Return on average equity * 12.49% 9.45%
ALLOWANCE FOR LOAN LOSSES
- -------------------------
Beginning balance, January 1 $1,335 $1,275
Provision charged to expense 220 140
Recoveries 13 27
Loans charged off 120 93
Ending balance, June 30 $1,448 $1,349
</TABLE>
<TABLE>
<CAPTION>
NON-PERFORMING ASSETS June 30, 1996 December 31, 1995 June 30, 1995
- --------------------- ------------- ----------------- -------------
<S> <C> <C> <C>
Non-accrual loans $ 585 $786 $629
Other real estate owned 75 75 --
Restructured loans 1,156 -- --
--------- ------------- -------------
Total non-performing assets $1,816 $861 $629
========= ============= =============
LOANS PAST DUE 90 DAYS OR
MORE AND STILL ACCRUING $ 99 $279 $184
========= ============= =============
</TABLE>
* Annualized
9
<PAGE>
GEORGIA BANK FINANCIAL CORPORATION
AND
GEORGIA BANK & TRUST COMPANY
REGULATORY CAPITAL REQUIREMENTS
JUNE 30, 1996
(Dollars in Thousands)
<TABLE>
<CAPTION>
Actual Required Excess
Amount($) Percent(%) Amount($) Percent(%) Amount($) Percent(%)
------------------- ------------------ ------------------
<S> <C> <C> <C>
GEORGIA BANK FINANCIAL CORPORATION
Risk-based capital:
Tier 1 capital 14,377 9.90 5,811 4.00 8,566 5.90
Total capital 15,825 10.89 11,623 8.00 4,202 2.89
Tier 1 leverage ratio 14,377 6.80 10,566 5.00 3,811 1.80
GEORGIA BANK & TRUST COMPANY
Risk-based capital:
Tier 1 capital 13,156 9.14 5,755 4.00 7,401 5.14
Total capital 14,604 10.15 11,509 8.00 3,095 2.15
Tier 1 leverage ratio 13,156 6.27 10,495 5.00 2,661 1.27
</TABLE>
10
<PAGE>
PART II
OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
There are no material pending legal proceedings to which the Company or any
of its subsidiaries is a party or of which any of their property is subject.
ITEM 2. CHANGES IN SECURITIES
(a) Not Applicable.
(b) Not Applicable.
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
Not Applicable.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY-HOLDERS.
(a) The Annual Meeting of Shareholders was held on April 12, 1996 at the
Company's office located at 3530 Wheeler Road, Augusta, Georgia.
(b) The following directors were elected for a term of one year and until
a successor is duly qualified and elected:
William J. Badger
Patrick G. Blanchard
R. Daniel Blanton
William P. Copenhaver
Warren A. Daniel
C. Linton DeVaughn III
Edward G. Meybohm
Travers W. Paine III
Robert W. Pollard, Jr.
Randolph R. Smith
Ronald L. Thigpen
John W. Trulock, Jr.
(c) The following matters were voted on at the meeting as was previously
identified in the Proxy materials forwarded to each shareholder:
11
<PAGE>
1. Proposal to elect the ten individuals nominated by management as
Directors.
Votes were cast as follows:
- ---------------------------
<TABLE>
<CAPTION>
Director For Against Abstain
- -------- --------- ------- -------
<S> <C> <C> <C>
William J. Badger 1,033,685 53 2082
Patrick G. Blanchard 1,033,738 2082
R. Daniel Blanton 1,033,738 2082
William P. Copenhaver 1,033,738 2082
Warren A. Daniel 1,033,738 2082
C. Linton DeVaughn, III 1,033,738 2082
Edward G. Meybohm 1,033,685 53 2082
Travers W. Paine, III 1,033,738 2082
Robert W. Pollard, Jr. 1,033,685 53 2082
Randolph R. Smith, M.D. 1,033,738 2082
Ronald L. Thigpen 1,033,738 2082
John W. Trulock, Jr. 1,019,112 14,573 2082
</TABLE>
ITEM 5. OTHER INFORMATION
Not Applicable
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K.
A) EXHIBITS
27 Financial Data Schedule
B) REPORTS ON FORM 8-K
The Company filed a Form 8-K dated April 17, 1996 during the
three months ended June 30, 1996.
12
<PAGE>
GEORGIA BANK FINANCIAL CORPORATION
Form 10-QSB Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized.
GEORGIA BANK FINANCIAL CORPORATION
Date: August 9, 1996 By: /s/ Ronald L. Thigpen
-------------- -------------------------------------------
Ronald L. Thigpen
Senior Vice President, Chief Financial
Officer (Duly Authorized Officer of
Registrant and Principal Financial Officer)
13
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 9
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE JUNE
30, 1996 10-QSB FINANCIAL STATEMENTS AND IS QUALIFIED IN ITS ENTIRETY BY
REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> JUN-30-1996
<CASH> 10,650,128
<INT-BEARING-DEPOSITS> 0
<FED-FUNDS-SOLD> 5,230,000
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 43,439,837
<INVESTMENTS-CARRYING> 2,014,742
<INVESTMENTS-MARKET> 2,014,742
<LOANS> 128,780,198
<ALLOWANCE> 1,448,430
<TOTAL-ASSETS> 201,125,680
<DEPOSITS> 180,266,810
<SHORT-TERM> 566,844
<LIABILITIES-OTHER> 1,391,948
<LONG-TERM> 4,213,334
0
0
<COMMON> 4,024,437
<OTHER-SE> 10,662,307
<TOTAL-LIABILITIES-AND-EQUITY> 201,125,680
<INTEREST-LOAN> 5,976,582
<INTEREST-INVEST> 1,407,116
<INTEREST-OTHER> 211,437
<INTEREST-TOTAL> 7,595,135
<INTEREST-DEPOSIT> 3,398,518
<INTEREST-EXPENSE> 3,547,391
<INTEREST-INCOME-NET> 4,047,744
<LOAN-LOSSES> 220,000
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 3,476,376
<INCOME-PRETAX> 1,295,728
<INCOME-PRE-EXTRAORDINARY> 1,295,728
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 812,034
<EPS-PRIMARY> 0.61
<EPS-DILUTED> 0.61
<YIELD-ACTUAL> 8.91
<LOANS-NON> 585,439
<LOANS-PAST> 99,236
<LOANS-TROUBLED> 1,156,030
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 1,335,275
<CHARGE-OFFS> 120,434
<RECOVERIES> 13,589
<ALLOWANCE-CLOSE> 1,448,430
<ALLOWANCE-DOMESTIC> 1,448,430
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
