<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 September 30, 1997.
------------------
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 registrant 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:
1,542,368 shares of common stock, $3.00 par value per share, issued and
outstanding as of September 30, 1997.
Transitional Small Business Disclosure Format (check one): Yes No X
--- ---
<PAGE>
GEORGIA BANK FINANCIAL CORPORATION
FORM 10-QSB
INDEX
Page
Part I
Item 1. Financial Statements (Unaudited)
Consolidated Balance Sheets as of September 30, 1997 and
December 31, 1996 4
Consolidated Statements of Income for the quarter
ended September 30, 1997 and September 30, 1996 and the
nine months ended September 30, 1997 and September 30, 1996 5
Consolidated Statements of Cash Flows for the
nine months ended September 30, 1997 and September 30, 1996 6
Notes to Consolidated Financial Statements 7
Item 2. Management Discussion and Analysis of
Financial Condition and Results of Operations 8
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 13
Item 5. Other Information *
Item 6. Exhibits and Reports on Form 8-K 14
Signature 15
* No information submitted under this caption
<PAGE>
PART I
FINANCIAL INFORMATION
-3-
<PAGE>
GEORGIA BANK FINANCIAL CORPORATION AND SUBSIDIARY
Consolidated Balance Sheets
Assets
<TABLE>
<CAPTION>
September 30,
1997 December 31,
(Unaudited) 1996
------------- -------------
<S> <C> <C>
Cash and due from banks $ 9,877,908 $ 10,550,857
Federal funds sold 210,000 1,520,000
------------- -------------
Cash and cash equivalents 10,087,908 12,070,857
Investment Securities
Available-for-sale 48,535,356 52,819,926
Held-to-maturity (market values of
$4,060,366 and $4,513,828, respectively) 4,033,830 4,491,145
Loans 165,891,364 135,212,336
Allowance for loan losses (1,869,766) (1,467,702)
------------- -------------
164,021,598 133,744,634
Premises and equipment, net 9,961,006 8,927,402
Accrued interest receivable 1,355,691 1,494,291
Prepaid expenses 449,846 371,385
Intangible assets 810,711 878,089
Other assets 1,309,417 1,209,953
------------- -------------
$240,565,363 $216,007,682
============= =============
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits
Non-interest bearing $ 36,363,438 33,306,103
Interest bearing
NOW accounts 25,879,235 23,942,118
Savings 61,347,899 43,557,783
Money management accounts 16,983,210 21,241,122
Time deposits over $100,000 34,097,142 31,122,021
Other time 39,436,698 42,498,381
------------- -------------
214,107,622 195,667,528
Federal funds purchased and securities sold
under repurchase agreements 1,378,429 1,225,294
Accrued interest and other liabilities 1,754,012 1,580,714
Advances from Federal Home Loan Bank 4,000,000 --
Other borrowed funds 1,146,669 1,186,668
------------- -------------
Total liabilities 222,386,732 199,660,204
------------- -------------
Stockholders' equity
Common Stock, par value $3.00; 10,000,000 shares
authorized; shares issued and outstanding of
1,542,368 in 1997 and 1996 4,627,104 4,627,104
Additional paid in capital 10,337,222 10,337,222
Retained Earnings 3,225,649 1,564,330
Unrealized loss on securities available-for-sale
net of deferred income taxes of $6,108 in
1997 and $97,558 in 1996 (11,344) (181,178)
------------- -------------
Total stockholders' equity 18,178,631 16,347,478
------------- -------------
------------- -------------
$240,565,363 $216,007,682
============= =============
</TABLE>
See notes to consolidated financial statements.
-4-
<PAGE>
GEORGIA BANK FINANCIAL CORPORATION AND SUBSIDIARY
Consolidated Statements of Income
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
September 30, September 30,
1997 1996 1997 1996
---------------- --------------- ----------------- -------------------
<S> <C> <C> <C> <C>
Interest Income
Loans $3,859,601 $3,194,978 $10,820,351 $ 9,382,997
Investment securities 891,423 797,644 2,789,149 1,993,323
Federal funds sold 33,239 75,446 154,865 286,883
---------------- --------------- ----------------- -------------------
4,784,263 4,068,068 13,764,365 11,663,203
---------------- --------------- ----------------- -------------------
Interest Expense
Deposits 2,095,638 1,833,005 6,122,065 5,231,523
Federal funds purchased and securities sold
under repurchase agreements 38,062 8,083 78,392 28,756
Loans and borrowings 59,113 46,005 122,586 174,205
---------------- --------------- ----------------- -------------------
2,192,813 1,887,093 6,323,043 5,434,484
---------------- --------------- ----------------- -------------------
Net Interest Income 2,591,450 2,180,975 7,441,322 6,228,719
Provision for loan losses 88,750 60,000 552,762 280,000
---------------- --------------- ----------------- -------------------
Net interest income after provision for
loan losses 2,502,700 2,120,975 6,888,560 5,948,719
---------------- --------------- ----------------- -------------------
Non-interest Income
Service charges and fees 771,782 536,081 1,900,905 1,439,500
Miscellaneous income 6,200 125 20,124 600
Investment securities gains (losses) (4,858) (1,696) (23,198) 27,962
---------------- --------------- ----------------- -------------------
773,124 534,510 1,897,831 1,468,062
---------------- --------------- ----------------- -------------------
Non-interest expense
Salaries 1,011,944 802,424 2,719,634 2,224,965
Employee benefits 226,194 146,947 652,468 475,211
Occupancy 438,610 383,086 1,233,285 1,082,529
Other operating expenses 586,896 541,171 1,813,197 1,556,491
---------------- --------------- ----------------- -------------------
2,263,644 1,873,628 6,418,584 5,339,196
---------------- --------------- ----------------- -------------------
Income before taxes 1,012,180 781,857 2,367,807 2,077,585
Provision for income taxes 374,000 294,875 706,488 778,569
---------------- --------------- ----------------- -------------------
Net Income $ 638,180 $ 486,982 $ 1,661,319 $ 1,299,016
================ =============== ================= ===================
Earnings per common share:
Weighted average number of common
shares outstanding 1,542,368 1,542,368 1,542,368 1,542,368
Net income per share $ 0.41 $ 0.32 $ 1.08 $ 0.84
================ =============== ================= ===================
</TABLE>
See notes to consolidated financial statements.
-5-
<PAGE>
GEORGIA BANK FINANCIAL CORPORATION AND SUBSIDIARY
Consolidated Statements of Cash Flows
(Unaudited)
<TABLE>
<CAPTION>
Nine Months Ended September 30,
1997 1996
------------- -------------
<S> <C> <C>
Cash flows from operating activities
Net Income 1,658,654 1,299,016
Adjustments to reconcile net income to net cash
provided by operating activities
Depreciation and amortization 783,505 745,332
Provision for loan losses 552,762 280,000
Loss (gain) on sale of investment securities 23,198 (27,962)
Loss on disposal of land 11,065 --
Accretion of discount on investment securities (28,445) (22,606)
Loss on sale of other real estate 39,886 --
Real estate loans originated for sale (15,431,000) (18,342,645)
Proceeds from sale of real estate loans 15,578,957 18,639,539
Net increase in accrued interest receivable 138,600 (42,664)
Net decrease in prepaid expense (78,461) (50,526)
Net increase in other assets (594,903) (135,327)
Net (decrease) increase in accrued interest and other liabilities 577,200 102,767
------------- -------------
Net cash provided by operating activities 3,231,018 2,444,924
------------- -------------
Cash flows from investing activities
Proceeds from sales and maturities of investment securities 27,736,158 12,485,913
Purchase of investment securities (22,727,742) (31,810,030)
Purchase of Georgia Union Mortgage, net of
cash and cash equivalents (145,000) --
Net increase in loans (31,110,570) (10,956,459)
Proceeds from sale of other real estate 164,317 --
Net purchase of premises and equipment (1,615,796) (843,138)
------------- -------------
Net cash used in investing activities (27,698,633) (31,123,714)
------------- -------------
Cash flows from financing activities
Net increase in deposits 18,371,530 35,482,966
Net increase (decrease) in federal funds purchased and securities
sold under repurchase agreements 153,135 (598,453)
Cash paid for fractional shares -- (6,298)
Payments on notes and bonds payable (39,999) (440,000)
Payment on FHLB advances -- (4,000,000)
Proceeds from FHLB advances 4,000,000 --
------------- -------------
Net cash provided by financing activities 22,484,666 30,438,215
------------- -------------
Net increase (decrease) in cash and cash equivalents (1,982,949) 1,759,425
Cash and cash equivalents at beginning of period 12,070,857 12,725,123
------------- -------------
Cash and cash equivalents at end of period 10,087,908 14,484,548
============= =============
</TABLE>
See notes to consolidated financial statements.
-6-
<PAGE>
GEORGIA BANK FINANCIAL CORPORATION AND SUBSIDIARY
Notes to Condensed Financial Statements
September 30, 1997 and December 31, 1996
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
the consolidation.
The financial statements for the nine months ended September 30, 1997 and 1996
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, 1996.
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
On August 21, 1996, the Company's Board of Directors approved a 15% stock
dividend payable on September 25, 1996 to shareholders of record on September 4,
1996. All weighted average share and per share information in the accompanying
financial statements has been restated to reflect the effect of the additional
shares outstanding resulting from the stock dividend.
-7-
<PAGE>
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations
Net Income
- ----------
The Company's net income for the third quarter of 1997 was $638,000, which was
an increase of $151,000 (31.0%) compared to net income of $487,000 for the third
quarter of 1996. Earnings per share for the quarter were $0.41 in 1997 compared
to $0.32 in 1996. Net income for the first nine months of 1997 was $1,661,000,
an increase of $362,000 (27.9%) above net income of $1,299,000 for the first
nine months of 1996. Total assets increased $5.5 million for the quarter to
$241 million (2.3%) and reflect an increase of $24.1 million (11.16%) from year
end 1996 and $29.6 million (14.0%) over the comparable period in 1996.
For the third quarter of 1997, as compared to the third quarter of 1996, the
increase in net income resulted from an increase in net interest income of
$409,000 and an increase in non-interest income of $238,000. The total of these
increases in income were reduced by an increase in non-interest expense of
$390,000 and an increase in the provision for loan losses of $29,000. The
increase in the provision for loan losses reflects the growth in the loan
portfolio and the maintenance of the allowance for loan losses at desired
levels. The net impact of these changes was an increase in income before taxes
of $230,000.
The return on average assets for the company was 0.96% for the nine months ended
September 30, 1997, compared to 0.88% for the same period last year. The return
on average stockholders' equity was 12.95%, compared to 11.71% for the
comparable period in 1996.
Net Interest Income
- -------------------
Net interest income increased $108,000 (4.3%) over the second quarter of 1997
and $1.2 million (19.5%) during the first nine months to $7.4 million over the
comparable period in 1996, primarily due to increases in earning asset balances.
Interest earning assets of $218.7 million at September 30, 1997, reflected an
increase of $4.8 million (2.3%) over the second quarter of 1997, $21.6 million
(11.1%) over December 31, 1996 and $30.5 million (16.5%) over September 30, 1996
Loans, the highest yielding component of interest earning assets, increased
$10.5 million (6.8%) to $165.9 million during the quarter, $30.7 million (22.7%)
over year end and $35.0 million (26.7%) over the comparable period in 1996.
Investment securities decreased $1.9 million (3.4%) during the quarter to $52.6
million, $4.7 million (8.3%) from year end and $1.7 million (3.1%) from the
comparable period in 1996. Federal funds sold decreased $1.3 million from year
end to $210,000 and $1.9 million from September 30, 1996.
-8-
<PAGE>
Interest Income
- ---------------
Interest income increased $157,000 (3.4%) over the second quarter of 1997 to
$4.8 million and $716,000 (17.6%) over the comparable quarter in 1996. Interest
income on loans increased $223,000 (6.16%) over the second quarter of 1997 to
$3.9 million and $665,000 (20.8%) over the third quarter in 1996. These
increases are the result of significantly higher volumes of loans outstanding.
Interest income earned on investment securities decreased $39,000 (4.2%) from
the second quarter of 1997 and increased $94,000 (11.8%) over the comparable
period in 1996. The volume of investment securities outstanding was lower at
the end of the third quarter of 1997 as compared to the second quarter of 1997
as securities were sold to fund loan growth The amount of investment securities
in the third quarter is also lower than the comparable period in 1996, although
income was greater due to increased rates. Interest income from Federal funds
sold decreased from both comparable periods as excess funds were utilized to
fund loan growth.
Non-interest Income
- -------------------
Non-interest income (excluding investment securities gains and losses) for the
third quarter was $773,000, an increase of $194,000 (33.4%) above the second
quarter and $238,000 (44.6%) above the third quarter of 1996. The increases
over both periods are the result of increases in service charges associated with
deposit accounts and increases in the volumes of deposit accounts. Total
deposits increased $5.2 million (2.5%) during the third quarter of 1997 to
$214.1 million and increased $21.3 million (11.03%) over September 30, 1996.
The Bank continues to supplement deposits with Federal Home Loan Bank borrowings
to support loan growth. Additionally, both periods reflect increased fees
resulting from increased volumes of origination and sale of mortgages in the
secondary market. Mortgages originated and sold during the third quarter of
1997 totaled $9.6 million as compared to $2.2 million in the second quarter of
1997 and $6.5 million during the third quarter of 1996.
Non-interest expense
- --------------------
Non-interest expense totaled $2.3 million for the third quarter, an increase of
$163,000 (7.7%) over the second quarter of 1997 and an increase of $390,000
(20.8%) over the comparable period in 1996. Increases over the respective
periods are attributable to (i) increases in salary and benefits expense of
$149,000 (13.7%) and $289,000 (30.5%) from the levels in the second quarter of
1997 and the third quarter of 1996 respectively, (ii) an increase in occupancy
expense of $50,000 (12.8%) from the second quarter and an increase of $56,000
(14.5%) over the comparable quarter in 1996, and (iii) a decrease in other
operating expenses of $36,000 (5.7%) compared to the second quarter of 1997 and
an increase of $46,000 (8.4%) from the comparable period in 1996.
-9-
<PAGE>
The increases 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 seven full service offices. The
Company continues to add lines of business that will increase profitability in
the future as the Company continues to grow. Lines of business added thus far
in 1997 include investment services, leasing and indirect financing. 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 third quarter of 1997 totaled $374,000, an increase of
$319,000 from the second quarter of 1997 and an increase of $79,000 from the
comparable period in 1996. The increase during the third quarter of 1997 as
compared to the second quarter is primarily due to a tax benefit recorded in the
second quarter of 1997 related to a decrease of $163,000 in the valuation
allowance for deferred taxes. Without the impact of this change, effective tax
rates remained comparable for the periods.
Asset Quality
- -------------
The table on page 11 shows the current and prior period amounts of non-
performing assets. Non-performing assets were $1.4 million at September 30,
1997, compared to $1.9 million at December 31, 1996 and $1.8 million at
September 30, 1996. The ratio of non-performing loans to total loans and other
real estate was 0.87% at September 30, 1997, compared to 1.40% at December 31,
1996 and 1.39% at September 30, 1996. The control and monitoring of non-
performing assets continues to be a significant management priority.
Loans past due 90 days or more and still accruing decreased to $110,000, down
from $131,000 at December 31, 1996 and $416,000 at September 30, 1996. 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.
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 allowance in a given period, and an assessment of present
and anticipated economic conditions. A provision for loan losses in the amount
of $89,000 was charged to expense for the quarter ended September 30, 1997.
This provision for losses exceeded the net charge-offs for the second quarter
which totaled $64,000. At September 30, 1997, the ratio of allowance for loan
losses to total loans was 1.13%, reflecting increases from 1.09% at December 31,
-10-
<PAGE>
1996 and 1.10% at September 30, 1996. 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 are, or 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 September 30, 1997 was 77.4%
compared to 69.1% at December 31, 1996 and 67.9% at September 30, 1996. This
increase in the loan to deposit ratio and resulting decrease in liquidity is due
to the increase in loans of $30.7 million during the first nine months while
deposits only increased $18.4 million. The Company utilizes Federal Home Loan
Bank borrowings as an additional source of funding. At September 30, 1997, the
Company had Federal Home Loan Bank borrowings outstanding in the amount of $4
million.
Shareholders' equity to total assets was 7.56% at September 30, 1997 compared to
7.57% at December 31, 1996. The capital of the Company and the Bank exceeded
all required regulatory guidelines at September 30, 1997. The Company's Tier 1
risk-based, total risk-based and the leverage capital ratios were 9.72%, 10.76%,
and 7.37% respectively at September 30, 1997. The schedule on page 11 reflects
the current regulatory capital levels in more detail, including comparisons to
the regulatory minimums.
On September 8, 1997, the Company began its offering of 278,000 shares of
Company Common Stock at a per share purchase price of $18.00 ("the Offering").
The initial phase of the Offering, which ended October 15, 1997, consisted of a
preemptive rights offering to Company shareholders as of September 8, 1997. The
second phase of the Offering began on October 15, 1997 and consisted of an
offering to persons or corporations located in the states of Georgia and South
Carolina. The Offering was completed on October 31, 1997.
In the preemptive rights phase, 178,000 shares were sold, and 100,000 shares
were sold in the community offering phase. The Company intends to use the net
proceeds of the Offering for general corporate purposes, including use in
operating activities and the origination of loans.
-11-
<PAGE>
GEORGIA BANK FINANCIAL CORPORATION AND SUBSIDIARY
CONSOLIDATED FINANCIAL DATA
(Dollars in Thousands)
(Unaudited)
<TABLE>
<CAPTION>
Nine Months Ended September 30
------------------------------
1997 1996
------ ------
<S> <C> <C>
PROFITABILITY
- -------------
Return on average assets* 0.96% 0.88%
Return on average equity* 12.95% 11.71%
ALLOWANCE FOR LOAN LOSSES
- -------------------------
Beginning balance, January 1 $1,468 $1,335
Loans charged off:
Commercial, financial and
agricultural 84 71
Real Estate-construction -- --
Real Estate-mortgage 26 39
Consumer 156 85
------ ------
Total charge-offs 266 195
------ ------
Recoveries:
Commercial, financial and
agricultural 58 7
Real estate-construction -- --
Real estate-mortgage 9 --
Consumer 48 19
------ ------
Total recoveries 115 26
------ ------
Net charge-offs 151 169
Provision charged to expense 553 280
------ ------
Ending balance, September 30 $1,870 $1,446
====== ======
</TABLE>
<TABLE>
<CAPTION>
NON-PERFORMING ASSETS September 30, 1997 December 31, 1996 September 30, 1996
- ---------------------
<S> <C> <C> <C>
Non-accrual loans $ 282 $1,739 $ 597
Other real estate owned 79 150 74
Restructured loans 1,081 -- 1,156
------ ------ ------
Total non-performing assets $1,442 $1,889 $1,827
====== ====== ======
LOANS PAST DUE 90 DAYS OR
- -------------------------
MORE AND STILL ACCRUING 110 $ 131 $ 416
- ----------------------- ====== ====== ======
Net charge-offs to average loans
outstanding for period 0.10% 0.26% 0.13%
</TABLE>
* Annualized
-12-
<PAGE>
Georgia Bank Financial Corporation
and
Georgia Bank & Trust Company
Regulatory Capital Requirements
September 30, 1997
(Dollars in Thousands)
<TABLE>
<CAPTION>
Actual Required Excess
Amount Percent Amount Percent Amount Percent
---------------------- ---------------------- ----------------------
<S> <C> <C> <C> <C> <C> <C>
Georgia Bank Financial Corporation
Risk-based capital:
Tier 1 capital 17,521 9.72% 7,209 4.00% 10,312 5.72%
Total capital 19,391 10.76% 14,417 8.00% 4,974 2.76%
Tier 1 leverage ratio 17,521 7.37% 11,881 4.00% 5,640 2.37%
Georgia Bank & Trust Company
Risk-based capital:
Tier 1 capital 16,188 9.06% 7,150 4.00% 9,038 5.16%
Total capital 18,058 10.10% 14,299 8.00% 3,759 2.10%
Tier 1 leverage ratio 16,188 6.87% 11,774 4.00% 4,414 1.87%
</TABLE>
-13-
<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.
None
Item 5. Other Information
None
Item 6. Exhibits and Reports on Form 8-K.
a) Exhibits
Financial Data Schedule
b) Reports on Form 8-K
One Report Form 8-K previously filed on October 14,1997.
-14-
<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: November 10, 1997 By: /s/ Ronald L. Thigpen
-------------------------------------------
Ronald L. Thigpen
Executive Vice President, Chief Operating
Officer (Duly Authorized Officer of
Registrant and Principal Financial Officer)
-15-
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 9
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM
SEPTEMBER 30, 1999 10 QSB FINANCIAL STATEMENTS AND IS QUALIFIED IN ITS
ENTIRETY BY REFERNCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> SEP-30-1997
<CASH> 9,877,908
<INT-BEARING-DEPOSITS> 0
<FED-FUNDS-SOLD> 210,000
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 48,535,356
<INVESTMENTS-CARRYING> 4,033,830
<INVESTMENTS-MARKET> 4,060,366
<LOANS> 165,891,364
<ALLOWANCE> 1,869,766
<TOTAL-ASSETS> 240,565,363
<DEPOSITS> 214,107,622
<SHORT-TERM> 6,378,429
<LIABILITIES-OTHER> 1,754,012
<LONG-TERM> 146,669
0
0
<COMMON> 4,627,104
<OTHER-SE> 13,551,527
<TOTAL-LIABILITIES-AND-EQUITY> 18,178,361
<INTEREST-LOAN> 10,820,351
<INTEREST-INVEST> 2,789,149
<INTEREST-OTHER> 154,865
<INTEREST-TOTAL> 13,764,365
<INTEREST-DEPOSIT> 6,122,065
<INTEREST-EXPENSE> 6,323,043
<INTEREST-INCOME-NET> 7,441,322
<LOAN-LOSSES> 552,762
<SECURITIES-GAINS> (23,198)
<EXPENSE-OTHER> 6,418,584
<INCOME-PRETAX> 2,367,807
<INCOME-PRE-EXTRAORDINARY> 2,367,807
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,661,319
<EPS-PRIMARY> 1.08
<EPS-DILUTED> 1.08
<YIELD-ACTUAL> 0
<LOANS-NON> 1,363,234
<LOANS-PAST> 107,178
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 1,467,702
<CHARGE-OFFS> 265,632
<RECOVERIES> 114,934
<ALLOWANCE-CLOSE> 1,869,766
<ALLOWANCE-DOMESTIC> 1,869,766
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
