- --------------------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-Q
Quarterly Report Pursuant to Section 13 or 15 (d) of
The Securities Exchanges Act of 1934
For the quarter ended Commission File No. 0-22058
June 30, 1996
MERCHANTS NEW YORK BANCORP, INC.
(Exact name of registrant as specified in its charter)
Delaware 13-3650812
(State or other jurisdiction of (I.R.S. employer
incorporation or organization) identification no.)
275 Madison Avenue, New York, N.Y. 10016-0001
(Address or principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (212)973-6600
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 ______
As of June 30, 1996, there were 4,984,386 shares of common stock
outstanding, the Registrant's only class of stock.
- --------------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
Merchants New York Bancorp
Consolidated Balance Sheets
Part I Item 1
<TABLE>
<CAPTION>
June 30, December 31,
1996 1995
-------------- -------------
<S> <C> <C>
Assets
Cash and due from banks $ 44,062,565 50,919,219
Federal funds sold 9,000,000 52,000,000
Securities available for sale, at market value 562,081,943 584,377,564
Investment securities 153,021,458 45,434,596
Loans, net of unearned discounts 266,614,429 270,904,241
Less allowance for loan losses 6,482,983 6,483,935
-------------- -------------
Net loans 260,131,446 264,420,306
Bank premises and equipment 6,971,592 6,645,543
Customers' liability on acceptances 12,107,506 10,591,829
Intangible asset 742,857 800,000
Other assets 13,577,200 12,002,366
-------------- -------------
Total Assets $1,061,696,567 1,027,191,423
-------------- -------------
Liabilities and Stockholders' Equity
Liabilities
Deposits:
Demand $ 203,256,587 228,471,451
NOW 36,264,120 39,473,117
Savings 25,335,937 27,249,627
Money market 130,563,939 116,305,147
Time 377,402,188 380,898,346
-------------- -------------
Total deposits 772,822,771 792,397,688
Securities sold under agreements to repurchase 147,000,000 105,065,000
Demand Notes to U.S. Treasury 16,142,684 0
Acceptances outstanding 12,107,506 10,591,829
Other liabilities 14,521,090 18,982,303
-------------- -------------
Total Liabilities 962,594,051 927,036,820
Stockholders' Equity
Capital stock-$.001 par value per share;
Authorized 10,000,000 shares;
4,984,386 and 4,981,338 issued & outstanding
in 1996 and 1995, respectively 4,984 4,982
Surplus 23,686,927 23,626,181
Undivided profits 70,043,444 66,719,678
Net unrealized appreciation on investments available
for sale, net of tax effect 5,367,161 9,803,762
-------------- -------------
Total Stockholders' Equity 99,102,516 100,154,603
-------------- -------------
-------------- -------------
Total Liabilities and Stockholders' Equity $1,061,696,567 1,027,191,423
-------------- -------------
</TABLE>
- --------------------------------------------------------------------------------
See accompanying notes to consolidated financial statements.
<PAGE>
- --------------------------------------------------------------------------------
Merchants New York Bancorp
(Consolidated)
Statements of Income
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
June 30, June 30, June 30, June 30,
1996 1995 1996 1995
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Interest Income
Interest on loans $ 5,825,766 $ 6,309,745 $11,444,810 $12,319,098
Interest and dividends on investment securities:
Taxable 10,548,319 9,627,003 20,666,470 19,043,806
Non-taxable 1,085,230 1,181,584 2,183,831 2,376,751
Interest on federal funds 60,884 0 161,327 56,154
----------- ----------- ----------- -----------
Total interest income $17,520,199 $17,118,332 $34,456,438 $33,795,809
----------- ----------- ----------- -----------
Interest Expense
Interest on deposits 6,330,280 6,878,683 12,749,446 13,519,876
Interest on federal funds purchased 115,014 254,102 227,995 382,169
Interest on securities sold under repurchase agreements 1,429,082 928,464 2,420,395 1,339,124
Interest on demand notes to U.S. Treasury 52,945 0 52,945 0
----------- ----------- ----------- -----------
Total interest expense $ 7,927,321 $ 8,061,249 $15,450,781 $15,241,169
----------- ----------- ----------- -----------
Net Interest Income $ 9,592,878 $ 9,057,083 $19,005,657 $18,554,640
Provision for possible loan losses 100,000 250,000 200,000 500,000
----------- ----------- ----------- -----------
Net interest income after provision for loan losses $ 9,492,878 $ 8,807,083 $18,805,657 $18,054,640
----------- ----------- ----------- -----------
Other Income
Service fee and other charges 336,411 346,904 642,045 679,242
International department services 618,205 706,425 1,178,610 1,378,402
Fee income 266,204 244,525 492,723 494,485
Other income 16,371 19,822 66,312 33,168
Investment sales - net gains 0 6,461 364,084 6,461
----------- ----------- ----------- -----------
Total other income $ 1,237,191 $ 1,324,137 $ 2,743,774 $ 2,591,758
----------- ----------- ----------- -----------
Other Expenses
Salaries and employee benefits 2,857,150 2,781,124 6,222,624 6,022,032
Net occupancy 645,337 494,834 1,258,831 972,818
Equipment 172,210 119,831 329,347 230,477
Other expenses 1,465,416 1,829,896 2,911,352 3,548,298
----------- ----------- ----------- -----------
Total other expenses $ 5,140,113 $ 5,225,685 $10,722,154 $10,773,625
----------- ----------- ----------- -----------
Income before income taxes $ 5,589,956 $ 4,905,535 $10,827,277 $ 9,872,773
Provision for income taxes 2,365,772 1,933,064 4,513,498 3,858,277
----------- ----------- ----------- -----------
Net Income $ 3,224,184 $ 2,972,471 $ 6,313,779 $ 6,014,496
----------- ----------- ----------- -----------
Average number of common shares outstanding 5,035,275 5,002,496 5,035,275 5,002,496
----------- ----------- ----------- -----------
Net income per average share $ 0.64 $ 0.60 $ 1.25 $ 1.20
----------- ----------- ----------- -----------
Dividends per share of common stock $ 0.30 $ 0.25 $ 0.60 $ 0.50
----------- ----------- ----------- -----------
</TABLE>
- --------------------------------------------------------------------------------
See accompanying notes to consolidated financial statements.
<PAGE>
- --------------------------------------------------------------------------------
Merchants New York Bancorp
Consolidated Statements of Cash Flows
Periods ended June 30, 1996 and 1995
<TABLE>
<CAPTION>
1996 1995
------------- ------------
<S> <C> <C>
Cash flows from operating activities:
Net income $ 6,313,779 $ 6,014,496
------------- ------------
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation 455,735 319,296
Amortization of premium, net of discounts 2,352,226 2,514,460
Provision for loan losses 200,000 500,000
Gains on sales (364,084) (6,461)
Discounted rental on leases (20,718) 0
Decrease in unearned discounts (17,557) (19,586)
Increase in taxes payable 57,098 435,939
Increase in interest receivable (356,548) (314,452)
Decrease in interest payable (531,388) (225,315)
Decrease in accrued expenses (608,493) (532,394)
Increase in other assets (1,218,286) (968,044)
Increase (decrease) in other liabilities 421,615 (1,752,670)
Total adjustments 369,600 (49,227)
------------- ------------
Net cash provided by operating activities 6,683,379 5,965,269
------------- ------------
Cash flows from investing activities:
Net decrease in federal funds sold 43,000,000 47,000,000
Proceeds from redemptions of securities available for sale 65,996,653 33,062,138
Proceeds from sales of securities available for sale 49,605,756 7,518,438
Purchase of securities available for sale (102,852,364) (48,864,405)
Proceeds from redemptions of investment securities 10,510,326 4,885,675
Purchase of investment securities (118,755,681) (3,226,130)
Net decrease (increase) in customer loans 4,106,416 (6,895,791)
Net increase in bank premises and equipment (724,642) (247,316)
------------- ------------
Net cash (used in) provided by investing activitities (49,113,536) (33,232,609)
------------- ------------
Cash flows from financing activities:
Net decrease in demand deposits, NOW, savings
and money market accounts (16,078,759) (46,859,280)
Net decrease in certificates of deposits (3,496,158) (37,474,515)
Net increase in federal funds purchased 0 44,000,000
Net increase in securities sold under repurchase agreements 41,935,000 5,000,000
Net increase in demand notes to U.S. Treasury 16,142,684 0
Proceeds from issuance of common stock 60,748 36,536
Dividends paid (2,990,012) (2,484,476)
------------- ------------
Net cash provided by (used in) financing activities 35,573,503 (37,781,735)
------------- ------------
Net (decrease) increase in cash and cash equivalents (6,856,654) (1,416,143)
Cash and cash equivalents at beginning of the period 50,919,219 50,721,430
------------- ------------
Cash and cash equivalents at end of the period $ 44,062,565 $ 52,137,573
============= ============
Supplemental disclosure of cash flow information:
Interest paid 15,982,169 15,466,484
Taxes paid 4,456,400 3,607,148
</TABLE>
- --------------------------------------------------------------------
See accompanying notes to consolidated financial statements.
<PAGE>
MERCHANTS NEW YORK BANCORP
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. The consolidated financial statements include the accounts of Merchants New
York Bancorp (Bancorp) and its wholly owned subsidiary, The Merchants Bank of
New York (the Bank). All material intercompany accounts and transactions have
been eliminated in consolidation. The consolidated financial statements as of
and for the interim periods of June 30, 1996 and 1995 are unaudited. However, in
management's opinion, all adjustments, which consist of normal accruals,
necessary for the fair presentation of such periods have been made. Certain
reclassifications have been made to the 1995 financial statements to conform to
current presentation. The interim financial statements should be read in
conjunction with Bancorp's Annual Report on Form 10-K, for the year ended
December 31, 1995.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
Part I - Item 2
THREE MONTHS ENDED JUNE 30, 1996 COMPARED WITH THREE MONTHS ENDED
JUNE 30, 1995
Interest on investments increased by $825,000 to $11.6 million for the second
quarter of 1996, as compared to $10.8 million in 1995. $938 million was
contributed by higher volume, with a reduction of $113 million from lower rates.
The major factors contributing to the increase were the reinvesting of funds
from pay downs on mortgage backed securities and maturities at higher rates as
well as the higher portfolio balances. The investment portfolio average
increased $53.3 million to $673 million in 1996, from $619.7 million in 1995.
Loan interest income decreased in the second quarter of 1996 by $484,000 to $5.8
million from $6.3 million for the same period in 1995, as lower rates resulted
in a drop of $556,000, while $72,000 was due to a slightly higher loan volume.
The lower rates reflect a prime rate decrease to 8.25% in the second quarter of
1996, from an average of 9% for the same time period in 1995. Average loan
outstandings increased $3 million to $261 million in 1996 from $258 million in
1995.
1
<PAGE>
MERCHANTS NEW YORK BANCORP
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS(Continued)
THREE MONTHS ENDED JUNE 30, 1996 COMPARED WITH THREE MONTHS ENDED
JUNE 30, 1995(Continued)
Interest expense on interest bearing deposits decreased by $549,000, to $6.3
million as compared to $6.9 million, for the second quarter of 1996 and 1995,
respectively. This was principally due to the affect of generally lower rates of
$450,000, as well as lower deposits of $99,000. Average interest bearing
deposits decreased by just under $1 million to $569.7 million in 1996, from
$570.6 million in 1995.
Interest expense on repurchase agreements increased $501,000 as of the quarter
ending June 30, 1996 to $1.4 million as compared to $928,000 for the same period
in 1995. $627,000 of the increase is primarily attributable to a greater volume,
which was offset by $126,000 in rate reductions. There was an increase in
average repurchase agreements to $106.2 million in 1996 from $60.5 million in
1995, to equalize cash flows due to lower deposits and an increased investment
portfolio. Interest expense on Federal funds purchased decreased by $139,000, to
$115,000 from $254,000 due to the use of short term funding from demand notes of
the U. S. Treasury Tax and Loan program. The interest expense of the demand
notes increased by $53,000, as this was the first quarter that the Bank became a
member of this program.
Noninterest income went down by $87,000 to $1.2 million from $1.3 million, due
principally to less International Department fees, caused by lower volume.
Noninterest expense decreased to $5.1 million or $86,000 less than the 1995
results of $5.2 million, stemming principally from a lowering of the cost of our
FDIC insurance by $447,000. This was offset by increases of $63,000 in pension
benefits contributions, $151,000 in net occupancy due to the rent on the Madison
Avenue branch and $52,000 in equipment.
2
<PAGE>
MERCHANTS NEW YORK BANCORP
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS(Continued)
THREE MONTHS ENDED JUNE 30, 1996 COMPARED WITH THREE MONTHS ENDED
JUNE 30, 1995(Continued)
An addition of $100,000 was made to the provision for loan losses for the second
quarter of 1996, versus $250,000 in 1995. The total provision is now almost $6.5
million, versus $6.7 million as of June 30, 1995.
Quarter ending
---------------
ALLOWANCE FOR LOAN LOSSES 6/30/96 6/30/95
- ---------------------------------------------------------------
(In thousands)
Balance at beginning of quarter $ 6,649 6,550
Provision for loan losses... 100 250
Charge offs................. (923) (300)
Recoveries
Commercial................ 656 214
Installment............... 1 0
-----------------------------
Total....................... $ 6,483 6,714
=============================
3
<PAGE>
MERCHANTS NEW YORK BANCORP
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS(Continued)
SIX MONTHS ENDED JUNE 30, 1996 COMPARED WITH SIX MONTHS ENDED
JUNE 30, 1995
Interest on investments increased by $1.4 million to $22.8 million for the
period ending June 30, 1996, as compared to $21.4 million in the same period in
1995. $1.3 million was contributed by higher volume and over $100,000 from
higher rates. The rise is the result of reinvesting funds from pay downs on
mortgage backed securities and maturities at higher rates and from additional
purchases. The investment portfolio average increased $36.5 million to $655.2
million in 1996, from $618.7 million in 1995.
Loan interest income decreased by just under $1 million to $11.4 million from
$12.3 million, with substantially all due to lower rates. The lower rates are
reflective of a prime rate decrease to 8.30% in 1996, from an average of 8.91%
in 1995. Average loan outstandings remained substantially unchanged at $254.7
million in 1996 and $254.9 million in 1995.
Interest expense on interest bearing deposits decreased by almost $800,000, to
$12.7 million as compared to $13.5 million, for the first half of 1996 versus
1995. $600,000 of the expense is attributable to lower volume of deposits,
centered primarily on certificates of deposits. There also was a decrease of
$200,000 attributable to lower rates. Average interest bearing deposits
decreased by $18.7 million to $565.6 million in 1996, from $584.3 million in
1995. The lower average deposits are due to the cyclical nature of both the
loans and deposits, as well as customers who sought non-bank interest returns.
Interest expense on repurchase agreements increased as of June 30, 1996 to $2.4
million as compared to $1.3 million for the same period in 1995. Attributable to
volume is $1.2 million, which was offset by $100,000 in rate reductions. There
was an increase in average repurchase agreements to $89 million in 1996 from $44
million in 1995, to compensate for lower deposits and a larger investment
portfolio. Interest expense on Federal funds purchased decreased by $154,000,
due to a volume reduction of $114,000, and a rate reduction of $40,000. The
reduction in purchases of Federal Funds is due to the Bank availing itself of
the purchase of Demand notes, through the Treasury Tax and Loan program, which
account for $53,000 in interest expense.
4
<PAGE>
MERCHANTS NEW YORK BANCORP
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS(Continued)
Noninterest income went up by $152,000 to $2.7 million, as a result of gains on
sales of securities of $364,000. The sales were made so as to reinvest the funds
at higher interest rates. This increase was reduced $200,000, by the
International Department's lower fee income.
Although noninterest expense remained virtually unchanged at $10.7 million for
both 1996 and 1995, there was a shift in the components of the expenses. This
was primarily stemming from a lowering by $895,000 of the cost of the FDIC
insurance, due to their reduction of the rates. This reduction was offset by
increases of $384,000 directly related to the relocation of our headquarters to
Madison Avenue and $123,000 in pension benefits.
Loan Losses and Non-Performing Assets
Loans are generally placed on non-accrual status when principal or interest
becomes 90 days or more past due. Those loans past due 90 days or more and that
are still accruing are either well secured or are in the process of collection.
Loans remain on non-accrual status until principal and interest payments are
current or are charged off.
The following table sets forth certain information with respect to the loan loss
experience for the year to date June 30, 1996 and 1995.
Year To Date
------------
ALLOWANCE FOR LOAN LOSSES 6/30/96 6/30/95
- --------------------------------------------------------------
(In thousands)
Balance at beginning of period $ 6,484 6,188
Provision for loan losses... 200 500
Charge offs................. (923) (300)
Recoveries
Commercial................ 721 326
Installment............... 1 0
----------------------------
Total....................... $ 6,483 6,714
=============================
5
<PAGE>
MERCHANTS NEW YORK BANCORP
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS(Continued)
Our loan loss provision is based on maintaining a loan loss reserve to cover all
non-accrual and higher risk loans. At June 30, 1996, our level of reserves
follows industry standards, as demonstrated in other commercial banks, with the
provision rising and falling to reflect the status of our loan portfolio risk.
The Bank's allowances for loan losses at June 30, 1996 was 2.54% of average
loans, with 2.63% at June 30, 1995. In addition to non-accrual loans, we
consider loans classified by management as having higher than normal credit risk
but where loss is not currently anticipated.
The following table sets forth the aggregate amount of domestic non-accrual and
past due loans which are 90 days or more past due as to principal or interest
payments on the date indicated.
As of
-----
NON-ACCRUAL & PAST DUE LOANS 6/30/96 6/30/95
- ------------------------------------------------------------------
(In thousands)
Non-accrual loans............... $ 3,155 1,791
Loans past due more than 90 days
& still accruing............ 1,700 590
Restructured loans.............. 0 0
-----------------------------
Total.....................$ 4,855 2,381
==============================
Non-accrual loans as a % reserve 48.7% 26.7%
Non-accrual loans as a % total
loans......................... 1.2 .7
Interest income that would have
been earned on nonaccrual loans $ 64 36
Interest income that was earned on nonaccrual (impaired) loans is considered
insignificant.
Liquidity
Liquidity measures the Bank's ability to satisfy current and future obligations
and commitments as they become due. Maintaining an adequate liquidity level
through proper asset liability management insures that these needs will be met
at a reasonable cost. Funds to meet liquidity needs are raised through the
liquidation or maturity of an asset or through increased deposits or borrowing.
At June 30, 1996, average cash and short term investments totaled $51.1 million
and accounted for 5.1% of the Bank's total average assets, as compared with $46
million or 4.9% as of June 30, 1995.
6
<PAGE>
MERCHANTS NEW YORK BANCORP
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS(Continued)
On the liability side, the primary source of funds available to meet liquidity
needs is the Bank's core deposit base. The average balance of deposits was
$773.2 million as of June 30, 1996, with $780.1 million for June 30, 1995. The
Bank continues to retain a substantial proportion of its average total deposits
in the form of non-interest bearing funds, which were 27% and 25% of total
deposits in 1996 and 1995, respectively. Additional liquidity is derived from
scheduled loan payments and payments of principal and interest from the
investment portfolio. There were sales of $49.6 million in securities as of June
30, 1996 with $7.5 million for the same period in 1995. $76.5 million was
received for the first half of 1996 from maturities and principal pay downs.
$37.9 million was recorded during the same period in 1995. In 1996, purchases of
investments were $221.6 million, with $52 million in 1995.
Bancorp's cash needs consist primarily of dividends, which flow up from the
Bank, and cash to cover its expenses, which are minimal. Dividends paid were
$1,495,315 in the second quarter of 1996, with $1,494,697 for the first quarter.
$1,242,263 and $1,242,213 were paid for dividends the second and first quarters
1995, respectively.
Capital
The primary source of capital growth is through retention of earnings. Undivided
profits increased to $70 million at 6/30/96 as compared to $64.2 million for the
prior year. The Bank's Board of Directors declared a dividend of $.30 for the
second quarter of 1996, which was an increase of 20% over the $.25 dividend for
the second quarter of 1995. These dividends and the 1995 financial results have
been restated to fully reflect the effect of the 2 for 1 stock split in October
of 1995.
The capital base of a bank is a significant measure of the strength of a
financial institution. The Bank has seen a steady capital growth over the past
several years, with our risk based ratios, as shown below, in excess of the
required "Well Capitalized" level of 8%. The Bank was also in excess of the
required leverage ratio of 4%, with 9.21% for the second quarter of 1996.
There was an overall increase of $6.2 million in capital from June 30, 1995 to
June 30, 1996. This change is substantially the result of increased retained
earnings after dividends were paid.
7
<PAGE>
MERCHANTS NEW YORK BANCORP
Required 6/30/96 6/30/95
---------------------------------
Tier I Capital Ratio.......... 4.00% 21.73% 20.70%
Total Capital Ratio........... 8.00 22.98 21.95
Leverage Ratio................ 4.00 9.21 9.69
PART II
Item 4 - Submission of Matters to a Vote of Security Holders
The Annual Meeting of Stockholders of Bancorp, was held on April 25, 1996 at
12:00 noon for the following purposes:
1. To elect twelve directors for the ensuing year, as named below. All served
in the prior year.
Charles J. Baum
William J. Cardew
Rudolf H. Hertz
Isadore Karten
James G. Lawrence
Robinson Markel
Paul Meyrowitz
Alan Mirken
Mitchell Nelson
Leonard Schlussel
Charles I. Silberman
Spencer B. Witty
2. To transact such other business as may properly come before the Meeting or
any adjournments thereof.
8
<PAGE>
MERCHANTS NEW YORK BANCORP
Item 6 - Exhibits and Reports on Form 8 - K
(a) Exhibits: Exhibit 27 - Financial Data Schedule
(b) Reports on Form 8 - K: None
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
MERCHANTS NEW YORK BANCORP, INC.
Registrant
Date: August 13, 1996 /s/ James G. Lawrence
-------------------------------
James G. Lawrence
President & Chief Executive Officer
Date: August 13, 1996 /s/ Nancy J. Ostermann
-------------------------------
Nancy J. Ostermann
Vice President and Comptroller
9
<TABLE> <S> <C>
<ARTICLE> 9
<LEGEND>
This schedule is a compilation of information appearing in the financial
statements that are included in the Quarterly Report on Form 10-Q of Merchants
New York Bancorp for the quarter ended June 30, 1996. It is qualified in its
entirety by reference to those financial statements.
</LEGEND>
<S> <C> <C>
<PERIOD-TYPE> 6-MOS 12-MOS
<FISCAL-YEAR-END> DEC-31-1996 DEC-31-1995
<PERIOD-END> JUN-30-1996 DEC-31-1995
<CASH> 44,062,565 50,919,219
<INT-BEARING-DEPOSITS> 0 0
<FED-FUNDS-SOLD> 9,000,000 52,000,000
<TRADING-ASSETS> 0 0
<INVESTMENTS-HELD-FOR-SALE> 562,081,943 584,377,564
<INVESTMENTS-CARRYING> 153,021,458 45,434,596
<INVESTMENTS-MARKET> 153,325,946 47,758,971
<LOANS> 266,614,429 270,904,241
<ALLOWANCE> 6,482,983 6,483,935
<TOTAL-ASSETS> 1,061,696,567 1,027,191,423
<DEPOSITS> 772,822,771 792,397,688
<SHORT-TERM> 163,142,684 105,065,000
<LIABILITIES-OTHER> 26,628,596 29,574,132
<LONG-TERM> 0 0
0 0
0 0
<COMMON> 4,984 4,982
<OTHER-SE> 99,097,532 100,149,621
<TOTAL-LIABILITIES-AND-EQUITY> 1,061,696,567 1,027,191,423
<INTEREST-LOAN> 11,444,810 26,604,396
<INTEREST-INVEST> 22,850,301 42,782,617
<INTEREST-OTHER> 161,327 182,593
<INTEREST-TOTAL> 34,456,438 69,569,606
<INTEREST-DEPOSIT> 12,749,446 27,032,507
<INTEREST-EXPENSE> 15,450,781 31,907,403
<INTEREST-INCOME-NET> 19,005,657 37,662,203
<LOAN-LOSSES> 200,000 2,080,000
<SECURITIES-GAINS> 364,084 127,697
<EXPENSE-OTHER> 10,722,154 22,731,545
<INCOME-PRETAX> 10,827,277 18,004,619
<INCOME-PRE-EXTRAORDINARY> 0 0
<EXTRAORDINARY> 0 0
<CHANGES> 0 0
<NET-INCOME> 6,313,779 11,465,430
<EPS-PRIMARY> 1.25 2.28
<EPS-DILUTED> 1.25 2.28
<YIELD-ACTUAL> 4.45 4.55
<LOANS-NON> 3,155,000 2,169,000
<LOANS-PAST> 1,700,000 281,000
<LOANS-TROUBLED> 0 0
<LOANS-PROBLEM> 0 0
<ALLOWANCE-OPEN> 6,484,000 6,188,000
<CHARGE-OFFS> 923,000 2,348,000
<RECOVERIES> 722,000 564,000
<ALLOWANCE-CLOSE> 6,483,000 6,483,935
<ALLOWANCE-DOMESTIC> 862,000 1,108,000
<ALLOWANCE-FOREIGN> 0 0
<ALLOWANCE-UNALLOCATED> 5,621,000 5,376,000
</TABLE>
