UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
- -------------------------------------------------------------------------------
Form 10-Q
X Quarterly Report Under Section 13 or 15(d) of the Securities
---------- Exchange Act of 1934
For the quarterly period ended March 31, 1997
Transition Report Under Section 13 or 15(d) of the Exchange
---------- Act
- -------------------------------------------------------------------------------
EAGLE FINANCIAL SERVICES, INC
(Exact name of registrant as specified in its charter)
Virginia 54-1601306
(State or other jurisdiction of (I.R.S. employer
incorporation or organization) identification no.)
Post Office Box 391, Berryville, Virginia 22611
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: 540-955-2510
Indicate by check mark whether the registrant (1) has filed all documents and
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 Registrant's classes of
common stock as of the latest practicable date:
Class Common Stock Number of shares 1,402,152 Outstanding at May 10, 1997
($2.50 par value)
<PAGE>
EAGLE FINANCIAL SERVICES, INC.
INDEX TO FORM 10-Q
Part I. Financial Information
Item 1. Financial Statements (Unaudited) ........................... 3
Consolidated Balance Sheets as of
March 31, 1997 and December 31, 1996 .................. 3
Consolidated Statements of Income for the
Three Months Ended March 31, 1997 and 1996 ............ 4
Consolidated Statement of Changes in
Stockholder's Equity for the Three Months
Ended March 31, 1997 and 1996 ................... 6
Consolidated Statements of Cash Flows for the
Three Months Ended March 31, 1997 and 1996 ............ 7
Notes to Consolidated Financial Statements ............ 9
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations ........ 12
Part II. Other Information
Item 6. Exhibits and reports on Form 8-K .......................... 14
Signatures ............................................................ 15
Exhibit 27 - Financial Data Schedule ................................. 16
<PAGE>
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
Eagle Financial Services, Inc. and Subsidiary
Consolidated Balance Sheets
As of March 31, 1997 and December 31, 1996
<TABLE>
<CAPTION>
March 31, 1997 December 31, 1996
-------------- -----------------
<S> <C>
Assets
Cash and due from banks $ 5,027,212 $ 4,409,250
Securities held to maturity (fair value:
1997, $26,090,001; 1996, $24,042,342) 26,649,059 24,345,102
Securities available for sale, at fair value 1,480,104 1,744,472
Federal funds sold 3,315,000 1,553,000
Loans, net of unearned discounts 84,329,252 87,870,194
Less allowance for loan losses (828,012) (913,955)
------------- -------------
Net loans 83,501,240 86,956,239
Bank premises and equipment, net 4,095,237 4,251,675
Other real estate owned 46,605 46,605
Intangible assets 641,061 653,624
Other assets 2,256,152 2,281,774
------------- -------------
Total assets $ 127,011,670 $ 126,241,741
============= =============
Liabilities and Stockholders' Equity
Liabilities
Deposits:
Noninterest bearing $ 14,555,826 $ 15,175,041
Interest bearing 96,981,244 95,912,826
------------- -------------
Total deposits $ 111,537,070 $ 111,087,867
Federal funds purchased 0 0
Other liabilities 1,040,610 957,018
------------- -------------
Total liabilities $ 112,577,680 $ 112,044,885
------------- -------------
Stockholders' Equity
Preferred Stock, $10 par value;
authorized 500,000 shares; no
shares outstanding $ 0 $ 0
Common Stock, $2.50 par value;
authorized 1,500,000 shares;
issued 1997, 1,402,152; issued
1996, 1,399,885 shares 3,505,379 3,499,714
Surplus 1,985,444 1,945,891
Retained Earnings 8,949,171 8,756,281
Unrealized loss on securities
available for sale, net (6,004) (5,030)
------------- -------------
Total stockholders' equity $ 14,433,990 $ 14,196,856
------------- -------------
Total liabilities and stockholders'
equity $ 127,011,670 $ 126,241,741
============= =============
</TABLE>
- 3 -
<PAGE>
Eagle Financial Services, Inc. and Subsidiary
Consolidated Statements of Income
For the Three Months Ended March 31, 1997 and 1996
<TABLE>
<CAPTION>
Three Months Ended
March 31,
1997 1996
------------ -------------
<S> <C>
Interest Income
Interest and fees on loans $ 1,863,241 $ 1,910,514
Interest on securities held to
maturity:
Taxable interest income 349,010 308,424
Interest income exempt from
federal income taxes 35,748 41,425
Interest and dividends on securities
available for sale, taxable 20,486 41,739
Interest on federal funds sold 28,651 3,507
----------- -----------
Total interest income $ 2,297,136 $ 2,305,609
----------- -----------
Interest Expense
Interest on deposits $ 923,743 $ 957,938
Interest on federal funds purchased 0 47,260
----------- -----------
Total interest expense $ 923,743 $ 1,005,198
----------- -----------
Net interest income $ 1,373,393 $ 1,300,411
Provision For Loan Losses 75,000 60,000
----------- -----------
Net interest income after
provision for loan losses $ 1,298,393 $ 1,240,411
----------- -----------
Other Income
Trust Department income $ 48,662 $ 48,353
Service charges on deposits 122,764 118,396
Other service charges and fees 46,363 43,633
Gain (loss) on equity investment (2,150) (1,306)
Other operating income 38,150 12,677
----------- -----------
$ 253,789 $ 221,753
----------- -----------
</TABLE>
- 4 -
<PAGE>
Eagle Financial Services, Inc. and Subsidiary
Consolidated Statements of Income
For the Three Months Ended March 31, 1997 and 1996
<TABLE>
<CAPTION>
Three Months Ended
March 31,
1997 1996
----------- ------------
<S> <C>
Other Expenses
Salaries and wages $ 454,596 $ 407,092
Pension and other employee benefits 128,306 105,554
Occupancy expenses 96,811 76,341
Equipment expenses 107,659 60,969
FDIC assessment 3,832 1,000
Stationary and supplies 43,524 44,290
Postage 23,951 39,020
Credit card expense 32,264 22,915
Bank franchise tax 24,048 27,213
ATM network fees 32,553 25,851
Intangible amortization 12,563 2,199
Other operating expenses 206,510 224,892
---------- ----------
$1,166,617 $1,037,336
---------- ----------
Income before income taxes $ 385,565 $ 424,828
Income Tax Expense 80,685 114,729
---------- ----------
Net Income $ 304,880 $ 310,099
========== ==========
Earnings Per Share $ 0.22 $ 0.23
========== ==========
</TABLE>
- 5 -
<PAGE>
Eagle Financial Services, Inc. and Subsidiary
Consolidated Statements of Changes in Stockholders' Equity
For the Three Months Ended March 31, 1997 and 1996
<TABLE>
<CAPTION>
Unrealized
Gain (Loss)
on Securities
Common Retained Available for
Stock Surplus Earnings Sale, Net Total
------------- ------------ ------------- ------------- ------------
<S> <C>
Balance, Dec 31, 1995 $ 1,738,212 $ 1,782,186 $ 9,612,627 ($ 12,606) $13,120,419
Net income 310,099 310,099
Net change in
unrealized (loss)
on securities avail-
able for sale 3,652 3,652
Fractional shares
purchased (5) (71) (76)
----------- ----------- ----------- ----------- -----------
Balance, Mar 31, 1996 $ 1,738,207 $ 1,782,115 $ 9,922,726 ($ 8,954) $13,434,094
=========== =========== =========== =========== ===========
Balance, Dec 31, 1996 $ 3,499,714 $ 1,945,891 $ 8,756,281 ($ 5,030) $14,196,856
Net income 304,880 304,880
Issuance of common
stock, dividend
investment plan
(2,268 shares) 5,669 39,585 45,254
Dividend declared
($.08 per share) (111,990) (111,990)
Net change in
unrealized (loss)
on securities avail-
able for sale (974) (974)
Fractional shares
purchased (4) (32) (36)
----------- ----------- ----------- ----------- -----------
Balance, Mar 31, 1997 $ 3,505,379 $ 1,985,444 $ 8,949,171 ($ 6,004) $14,433,990
=========== =========== =========== =========== ===========
</TABLE>
- 6 -
<PAGE>
Eagle Financial Services, Inc. and Subsidiary
Consolidated Statements of Cash Flows
For the Three Months Ended March 31, 1997 and 1996
<TABLE>
<CAPTION>
1997 1996
---------- ------------
<S> <C>
Cash Flows from Operating Activities
Net income $ 304,880 $ 310,099
Adjustments to reconcile net income to
net cash provided by operating activities:
Depreciation 103,511 77,243
Amortization of intangible assets 12,563 3,150
Loss on equity investment 2,150 1,306
Provision for loan losses 75,000 60,000
Premium amortization on securities, net 8,940 11,638
Deferred tax 0 7,873
(Increase) decrease in other assets 103,654 (96,969)
Increase in other liabilities 83,592 99,333
----------- -----------
Net cash provided by operating activities $ 694,290 $ 473,673
----------- -----------
Cash Flows from Investing Activities
Proceeds from maturities and principal
payments on securities held to maturity $ 920,129 $ 793,045
Proceeds from maturities and principal
payments on securities available for sale 308,000 998,844
Purchases of securities held to maturity (3,233,032) (2,573,513)
Purchases of securities available for sale (45,100) (140,377)
Purchases of bank premises and equipment (26,755) (868,165)
Acquisition of intangible assets 0 (737,348)
Net decrease in loans 3,379,999 1,109,589
----------- -----------
Net cash provided by (used in) investing
activities $ 1,303,241 ($1,417,925)
----------- -----------
Cash Flows from Financing Activities
Net increase (decrease) in demand deposits,
money market, and savings accounts ($ 115,303) $ 2,538,395
Net increase (decrease) in certificates of deposit 564,506 (174,048)
Net (decrease) in federal funds purchased 0 (966,000)
Cash dividends paid (66,736) 0
Fractional shares purchased (36) (76)
----------- -----------
Net cash provided by financing activities $ 382,431 $ 1,398,271
----------- -----------
Increase in cash and cash equivalents $ 2,379,962 $ 454,019
Cash and Cash Equivalents
Beginning 5,962,250 4,106,467
----------- -----------
Ending $ 8,342,212 $ 4,560,486
=========== ===========
</TABLE>
- 7 -
<PAGE>
Eagle Financial Services, Inc. and Subsidiary
Consolidated Statements of Cash Flows
For the Three Months Ended March 31, 1997 and 1996
<TABLE>
<CAPTION>
1997 1996
----------- ----------
<S> <C>
Supplemental Disclosures of Cash Flow Information
Cash payments for:
Interest $ 976,620 $1,019,297
========== ==========
Income taxes $ 0 $ 6,480
========== ==========
Supplemental Schedule of Non-Cash Financing
Activities:
Issuance of common stock,
dividend investment plan $ 45,254 $ 0
========== ==========
Unrealized gain (loss) on securities
available for sale ($ 1,474) $ 5,534
========== ==========
</TABLE>
- 8 -
<PAGE>
EAGLE FINANCIAL SERVICES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
March 31, 1997
(1) The accompanying unaudited financial statements have been prepared in
accordance with generally accepted accounting principals for interim
financial information and with the instructions to Form 10-Q and
Article 10 of Regulation S-X. Accordingly, they do not include all of
the information and footnotes required by generally accepted accounting
principles.
(2) In the opinion of management, the accompanying unaudited financial
statements contain all adjustments (consisting of only normal recurring
accruals) necessary to present fairly the financial position as of
March 31, 1997 and December 31, 1996, and the result of operations and
cash flows for the three months ended March 31, 1997 and 1996. The
statements should be read in conjunction with the Notes to Financial
Statements included in the Company's Annual Report for the year ended
December 31, 1996.
(3) The results of operations for the three month period ended March 31,
1997 and 1996, are not necessarily indicative of the results to be
expected for the full year.
(4) Securities held to maturity and available for sale as of March 31, 1997
and December 31, 1996, are:
<TABLE>
<CAPTION>
March 31, 1997 December 31, 1996
Held to Maturity Amortized Cost Amortized Cost
------------------- ------------------ -----------------
<S> <C>
U.S. Treasury securities $ 622,676 $ 821,632
Obligations of U.S. government
corporations and agencies 5,469,285 5,467,491
Mortgage-backed securities 17,238,058 14,960,458
Obligations of states and political
subdivisions 3,269,040 2,995,521
Other securities 50,000 100,000
----------- -----------
$26,649,059 $24,345,102
=========== ===========
March 31, 1997 December 31, 1996
Fair Value Fair Value
----------- -----------
U.S. Treasury securities $ 620,239 $ 823,361
Obligations of U.S. government
corporations and agencies 5,333,061 5,396,463
Mortgage-backed securities 16,825,107 14,730,775
Obligations of states and political
subdivisions 3,261,606 2,991,733
Other securities 49,988 100,010
----------- -----------
$26,090,001 $24,042,342
=========== ===========
</TABLE>
- 9 -
<PAGE>
<TABLE>
<CAPTION>
March 31, 1997 December 31, 1996
Available for Sale Amortized Cost Amortized Cost
- ----------------------- --------------- -----------------
<S><C>
Obligations of U.S. government
corporations and agencies 750,000 999,994
Other securities 739,200 752,100
---------- ----------
$1,489,200 $1,752,094
========== ==========
March 31, 1997 December 31, 1996
Fair Value Fair Value
-------------- -----------------
Obligations of U.S. government
corporations and agencies 740,904 992,372
Other securities 739,200 752,100
---------- ----------
$1,480,104 $1,744,472
========== ==========
</TABLE>
(5) Net loans at March 31, 1997 and December 31, 1996 are summarized
as follows:
<TABLE>
<CAPTION>
March 31, 1997 December 31, 1996
--------------- -----------------
<S><C>
Loans secured by real estate:
Construction and land development $ 1,563,328 $ 1,434,277
Secured by farmland 3,724,178 4,013,322
Secured by 1-4 family residential 44,865,729 45,156,222
Nonfarm, nonresidential loans 9,365,280 9,517,839
Loans to finance agricultural production 1,242,628 1,446,108
Commercial and industrial loans 5,513,386 6,145,077
Loans to individuals 17,516,049 19,632,667
Loans to U.S. state and political
subdivisions 1,435,111 1,517,111
All other loans 111,910 214,483
------------ ------------
Gross loans $ 85,337,599 $ 89,077,106
Less:
Unearned income (1,008,347) (1,206,912)
Allowance for loan losses (828,012) (913,955)
------------ ------------
Loans, net $ 83,501,240 $ 86,956,239
============ ============
</TABLE>
- 10 -
<PAGE>
(6) Allowance for Loan Losses
<TABLE>
<CAPTION>
March 31, 1997 December 31, 1996
-------------- -----------------
<S><C>
Balance, beginning $ 913,955 $ 828,104
Provision charged to operating expense 75,000 290,000
Recoveries added to the allowance 4,438 63,561
Loan losses charged to the allowance (165,381) (267,710)
--------- ---------
Balance, ending $ 828,012 $ 913,955
========= =========
</TABLE>
(7) New Accounting Pronouncements
FASB Statement No. 125, "Accounting for Transfers and Servicing of Financial
Assets and Extinguishments of Liabilities," was issued in June 1996 and
establishes, among other things, new criteria for determining whether a transfer
of financial assets in exchange for cash or other consideration should be
accounted for as a sale or as a pledge of collateral in a secured borrowing.
Statement 125 also establishes new accounting requirements for pledged
collateral. As issued, Statement 125 is effective for all transfers and
servicing of financial assets and extinguishments of liabilities occurring after
December 1996.
FASB Statement No. 127, "Deferral of the Effective Date of Certain Provisions of
FASB Statement No. 125," defers for one year the effective date (a) of para-
graph 15 of Statement 125 and (b) for repurchase agreement, dollar-roll, secur-
ities lending, or similar transactions, of paragraph 9-12 and 237(b) of
Statement 125.
The effects of these Statements on the Bank's financial statements are not
expected to be material.
- 11 -
<PAGE>
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations
Performance Summary
Net income of the company for the first three months of 1997 and 1996 was $304,
880 and $310,099, respectively. This is a slight decrease of $5,219 or 1.68%.
The results of operations for the three month periods ended March 31, 1997 and
1996 are not necessarily indicative of the results to be expected for the full
year. Net interest income after provision for loan losses for the first three
months of 1997 and 1996 was $1,298,393 and $1,240,411, respectively. This is an
increase of $57,982 or 4.67%. Total other income increased $32,036 or 14.45%
from $221,753 for the first three months of 1996 to $253,789 for the first three
months of 1997. Total other expenses increased $129,281 or 12.46% from
$1,037,336 during the first three months of 1996 to $1,166,617 during the first
three months of 1997.
Earnings per common share outstanding was $0.22 and $0.23 for the three months
ended March 31, 1997 and 1996, respectively. Annualized return on average assets
for the quarter ended March 31, 1997 was 0.97% as compared to 1.03% for quarter
ended March 31, 1996. Annualized return on average equity for 1997 was 8.54% as
compared to 9.34% for 1996.
Provision and Allowance for Loan Losses
The provision for loan losses is based upon management's estimate of the amount
required to maintain an adequate allowance for loan losses reflective of the
risks in the loan portfolio. The Company reviews the adequacy of the allowance
for loan losses monthly and utilizes the results of these evaluations to
establish the provision for loan losses. The allowance is maintained at a level
believed by management to absorb potential losses in the loan portfolio. The
methodology considers specific identifications, specific and estimate pools,
trends in delinquencies, local and regional economic trends, concentrations,
commitments, off balance sheet exposure and other factors. The provision for
loan losses increased $15,000 from $60,000 in 1996 to $75,000 in 1997. The
allowance for loan losses decreased $85,943 or 9.40% during the first three
months of 1997 from $913,955 at December 31, 1996 to $828,012 at March 31, 1997.
The allowance as a percentage of total loans decreased from 1.04% at December
31, 1996 to 0.98% at March 31, 1997. The Company had net charge-offs of $160,943
and $45,491 for the first three months of 1997 and 1996, respectively. The ratio
of net charge-offs to average loans was 0.19% for the first three months of 1997
as compared to 0.05% for the first three months of 1996.
The coverage for the allowance for loan losses over non-performing assets and
loans 90 days past due and still accruing interest has increased from 90.14% at
December 31, 1996 to 122.69% at March 31, 1997. Loans past due greater than 90
days and still accruing interest decreased from $967,319 at December 31, 1996 to
$628,285 at March 31, 1997.
Potential problem loans are included in the loans past due 90 days or more and
still accruing interest. Loans are viewed as potential problem loans when
management questions the ability of the borrower to comply with current
repayment terms. These loans are subject to constant review by management and
their status is reviewed on a regular basis. The amount of problem loans as of
March 31, 1997 was $360,626. Most of these loans are well secured and management
expects to incur only immaterial losses on their disposition.
- 12 -
<PAGE>
Balance Sheet
Total assets increased $0.77 million or 0.61% from $126.24 million at December
31, 1996 to $127.01 million at March 31, 1997. Securities increased $2.04
million or 7.82% during the first three months of 1997 from $26.09 million at
December 31, 1996 to $28.13 million at March 31, 1997. Loans, net of unearned
discounts decreased $3.54 million or 4.03% during the same period from $87.87
million at December 31, 1996 to $84.33 million at March 31, 1997.
Total liabilities increased $0.53 million or 0.48% during the first three months
of 1997 from $112.04 million at December 31, 1996 to $112.58 million at March
31, 1997. Total deposits increased $0.45 million or 0.40% during the same period
from $111.09 at December 31, 1996 to $111.54 million at March 31, 1997. Total
stockholders' equity increased $0.24 million during the first three months of
1997 from $14.20 million at December 31, 1996 to $14.43 million at March 31,
1997.
Stockholders' Equity
The Company continues to be a strongly capitalized financial institution.
Stockholders' equity per share increased $0.15 or 1.48% from $10.14 per share at
December 31, 1996 to $10.29 per share at March 31, 1997. During 1996 the Company
paid $0.30 per share in dividends. During 1997, the Company changed its dividend
policy to begin paying quarterly dividends. The Company's first quarter dividend
was $0.08 per share. The Company has a Dividend Investment Plan that reinvests
the dividends of participating shareholders in Company stock.
Liquidity
Asset and liability management assures liquidity and maintains the balance
between rate sensitive assets and liabilities. Liquidity management involves
meeting the present and future financial obligations of the Company with the
sale or maturity of assets or through the occurrence of additional liabilities.
Liquidity needs are met with cash on hand, deposits in banks, federal funds
sold, securities classified as available for sale and loans maturing within one
year. Total liquid assets were $32.8 million at March 31, 1997 and $34.5 million
at December 31, 1996. These represent 29.1% and 30.8% of total liabilities as of
March 31, 1997 and December 31, 1996, respectively.
- 13 -
<PAGE>
PART II. OTHER INFORMATION
Item 1. Legal proceedings.
None
Item 2. Changes in securities.
None.
Item 3. Defaults upon senior securities.
None.
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.
Exhibit 2 Not applicable
Exhibit 3 (i) Articles of Incorporation of Registrant
(incorporated herein by reference
as Exhibit 3.1 of Registrant's
Form S-4 Registration Statement,
Registration No. 33-43681.)
(ii) Bylaws of Registrant (incorporated
herein by reference as Exhibit
3.2 of Registrant's Form S-4
Registration Statement,
Registration No. 33-43681).
Exhibit 4 Not applicable
Exhibit 10 Material Contracts
10.1 Description of Executive Supplemental
Income Plan, Incorporated by
reference to Exhibit 10.1 to the
Company's Annual Report on Form
10-K for the year ended December
31, 1996
10.2 Lease Agreement between Bank of Clarke
County (tenant) and Winchester
Development Company (landlord)
dated August 1, 1992 for the
branch office at 625 East Jubal
Early Drive, Winchester,
Virginia, Incorporated herein by
reference to Exhibit 10.2 of the
Company's Annual Report on Form
10-K for the year ended December
31, 1995, File No. 0-20146)
Exhibit 11 Not applicable
Exhibit 15 Not applicable
Exhibit 18 Not applicable
Exhibit 19 Not applicable
Exhibit 22 Not applicable
Exhibit 23 Not applicable
Exhibit 24 Not applicable
Exhibit 27 Financial Data Schedule, Incorporated
herein as Exhibit 27
Exhibit 99 Not applicable
(b) Reports on Form 8-K.
None.
- 14 -
<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.
EAGLE FINANCIAL SERVICES, INC.
Date: May 13, 1997 /s/ LEWIS M. EWING
----------------------------------
Lewis M. Ewing
President and CEO
Date: May 13, 1997 /s/ JOHN R. MILLESON
----------------------------------
John R. Milleson
Vice President, Secretary and
Treasurer
Date: May 13, 1997 /s/ JAMES W. MCCARTY, JR.
----------------------------------
James W. McCarty, Jr.
Controller
- 15 -
<TABLE> <S> <C>
<ARTICLE> 9
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> MAR-31-1997
<CASH> 5,027
<INT-BEARING-DEPOSITS> 0
<FED-FUNDS-SOLD> 3,315
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 1,480
<INVESTMENTS-CARRYING> 26,649
<INVESTMENTS-MARKET> 26,090
<LOANS> 84,329
<ALLOWANCE> 828
<TOTAL-ASSETS> 127,012
<DEPOSITS> 111,537
<SHORT-TERM> 0
<LIABILITIES-OTHER> 1,041
<LONG-TERM> 0
<COMMON> 5,491
0
0
<OTHER-SE> 8,943
<TOTAL-LIABILITIES-AND-EQUITY> 127,012
<INTEREST-LOAN> 1,863
<INTEREST-INVEST> 405
<INTEREST-OTHER> 29
<INTEREST-TOTAL> 2,297
<INTEREST-DEPOSIT> 924
<INTEREST-EXPENSE> 924
<INTEREST-INCOME-NET> 1,373
<LOAN-LOSSES> 75
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 1,167
<INCOME-PRETAX> 386
<INCOME-PRE-EXTRAORDINARY> 386
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 305
<EPS-PRIMARY> 0.22
<EPS-DILUTED> 0.22
<YIELD-ACTUAL> 4.79
<LOANS-NON> 0
<LOANS-PAST> 628
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 361
<ALLOWANCE-OPEN> 914
<CHARGE-OFFS> 165
<RECOVERIES> 4
<ALLOWANCE-CLOSE> 828
<ALLOWANCE-DOMESTIC> 125
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 703
</TABLE>
