<PAGE>
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10 - QSB
(X) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 1996
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from ______________ to ________________
Commission File No. 0-21078
UNION BANKSHARES, LTD.
(Exact name of small business issuer as specified in its charter)
DELAWARE 84-0986148
______________________________ __________________
(State or other jurisdiction of (I.R.S Employer)
incorporation or organization) Identification No.)
1825 LAWRENCE STREET, SUITE 444, DENVER, CO 80202
(Address of principal executive offices)
(Zip Code)
(303) 298-5352
(Issuer's telephone number, including area code)
- ---------------------------------------------------------------------
Not Changed
- ---------------------------------------------------------------------
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 twelve 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 .
----- -----
At May 10, 1996, there were 1,149,982 shares of common stock
outstanding.
<PAGE>
UNION BANKSHARES, LTD.
INDEX
Page
----
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements................. 1
Item 2. Management's Discussion and Analysis or
Plan of Operation.................... 6
PART II - OTHER INFORMATION......................... 12
SIGNATURES.......................................... 13
<PAGE>
PART I - FINANCIAL INFORMATION
ITEM 1 - FINANCIAL STATEMENTS
MARCH 31, 1996
UNION BANKSHARES, LTD. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CONDITION
<TABLE>
<CAPTION>
MARCH 31, DECEMBER 31,
ASSETS 1996 1995
(UNAUDITED)
------------- --------------
<S> <C> <C>
Cash and cash equivalents:
Cash and due from banks $12,032,000 $10,297,000
Federal funds sold 0 0
-------------- --------------
Total cash and cash equivalents 12,032,000 10,297,000
Investment securities:
Investment securities held to maturity 17,628,000 18,416,000
Investment securities available for sale 42,025,000 51,232,000
-------------- --------------
Total investment securities 59,653,000 69,648,000
Loans:
Commercial 57,280,000 54,488,000
Real estate mortgage 7,579,000 7,975,000
Mortgage loans held for sale 886,000 --
Real estate construction 6,335,000 5,064,000
Consumer 14,265,000 13,785,000
-------------- --------------
Total loans 86,345,000 81,312,000
Less: allowance for loan losses (1,513,000) (1,448,000)
-------------- --------------
84,832,000 79,864,000
Excess of investment in subsidiary over net
assets acquired 3,116,000 3,172,000
Furniture, equipment and improvements, net 1,656,000 1,690,000
Accrued interest receivable 1,258,000 1,085,000
Other assets 983,000 1,476,000
-------------- --------------
TOTAL ASSETS $163,530,000 $167,232,000
============== ==============
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Demand (noninterest -bearing) $39,387,000 $42,466,000
NOW 13,144,000 13,512,000
Money Market 57,648,000 52,343,000
Savings 9,050,000 8,818,000
Time 22,004,000 23,036,000
-------------- --------------
Total deposits 141,233,000 140,175,000
Federal funds purchased 2,475,000 4,000,000
Notes payable 4,000,000 6,512,000
Accrued interest payable 89,000 230,000
Other liabilities 819,000 1,403,000
-------------- --------------
Total liabilities 148,616,000 152,320,000
Stockholders' equity
Common stock 1,000 1,000
Common stock surplus 9,410,000 9,384,000
Valuation allowance 703,000 852,000
Retained earnings 4,800,000 4,675,000
-------------- --------------
Total stockholders' equity 14,914,000 14,912,000
-------------- --------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $163,530,000 $167,232,000
============== ==============
</TABLE>
<PAGE>
UNION BANKSHARES, LTD. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF EARNINGS
<TABLE>
<CAPTION>
(UNAUDITED)
MARCH 31,
------------------------------
1996 1995
---- ----
<S> <C> <C>
INTEREST INCOME:
Interest and fees on loans $2,172,000 $1,739,000
Interest on investment securities:
U.S. government agencies and corporations 514,000 514,000
States and other political subdivisions 474,000 440,000
U.S. Treasury 0 135,000
Interest on federal funds sold
and interest bearing deposits at other banks 13,000 16,000
------------- -------------
Total interest income 3,173,000 2,844,000
INTEREST EXPENSE:
Interest on deposits 836,000 728,000
Interest on federal funds purchased 34,000 50,000
Interest on notes payable 135,000 137,000
------------- -------------
Total interest expense 1,005,000 915,000
------------- -------------
NET INTEREST INCOME BEFORE PROVISION FOR
LOAN LOSS 2,168,000 1,929,000
PROVISION FOR LOAN LOSS 45,000 60,000
------------- -------------
NET INTEREST INCOME AFTER PROVISION FOR
LOAN LOSS 2,123,000 1,869,000
NONINTEREST INCOME:
Service charges 92,000 80,000
Gain (loss) on sale of securities available for sale 111,000 (35,000)
Other 98,000 85,000
------------- -------------
Total non interest income 301,000 130,000
------------- -------------
NONINTEREST EXPENSE:
Salaries and employee benefits 966,000 727,000
Amortization of investment in subsidiary
over net assets acquired 57,000 56,000
Occupancy and equipment 313,000 229,000
Other 1,041,000 607,000
------------- -------------
Total non interest expense 2,377,000 1,619,000
------------- -------------
INCOME BEFORE INCOME TAX EXPENSE 47,000 380,000
INCOME TAX EXPENSE (Note 3) (78,000) 42,000
------------- -------------
NET INCOME $125,000 $338,000
============= =============
EARNINGS PER COMMON SHARE: (Note 4)
Net income available for common stockholders $125,000 $338,000
============= =============
Net income per share available for common stockholders $0.106 $0.291
============= =============
Weighted average number of common shares outstanding 1,176,162 1,159,919
============= =============
</TABLE>
<PAGE>
UNION BANKSHARES, LTD. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED MARCH 31, 1996
<TABLE>
<CAPTION>
(UNAUDITED) THREE MONTHS ENDED
MARCH 31,
--------------------------------
1996 1995
-------------- -------------
<S> <C> <C>
Net cash provided (used) by operating activities $6,967,000 $1,108,000
-------------- -------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of securities held to maturity $0 (900,000)
Proceeds from sale of securities available for sale $13,322,000 8,713,000
Purchase of securities available for sale ($6,599,000) (2,178,000)
Loan origination fees received $144,000 56,000
Loan originations net of repayments ($4,144,000) (3,500,000)
Proceeds from the sale of mortgage loans $1,933,000 0
Purchase of mortgage loans ($2,818,000) (77,000)
Proceeds from maturities of securities available for sale $2,912,000 479,000
Proceeds from maturities of investment securities $747,000 955,000
Proceeds from sale of other real estate owned $0 83,000
Purchase of premises and equipment ($62,000) (63,000)
-------------- -------------
Net cash used in investing activities 5,435,000 3,568,000
-------------- -------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Net increase in deposits 1,058,000 (2,652,000)
New borrowings long-term debt 4,000,000 0
Repayments of long-term debt (6,512,000) (100,000)
Purchase of common stock 26,000 (50,000)
-------------- -------------
Net cash provided by financing activities (1,428,000) (2,802,000)
-------------- -------------
Net increase in cash and cash equivalents 10,974,000 1,874,000
Cash and cash equivalents, beginning of year 1,058,000 6,329,000
-------------- -------------
Cash and cash equivalents, end of quarter $12,032,000 $8,203,000
============== =============
</TABLE>
<PAGE>
UNION BANKSHARES, LTD. AND SUBSIDIARY
NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
MARCH 31, 1996
NOTE 1. BASIS OF PRESENTATION
The accompanying unaudited consolidated financial statements have been
prepared in accordance with the instructions to Form 10-QSB and do not
include all the information and note disclosures required by generally
accepted accounting principles for complete financial statements. For
further information, refer to the consolidated financial statements
and related footnotes included in the Company's annual report on form
10-KSB for the year ended December 31, 1995. In the opinion of
Management, the consolidated financial statements presented herein
include all adjustments (consisting of normal recurring accruals)
necessary to present fairly, in all material respects, the
consolidated financial position of Union Bankshares, Ltd. (the
"Company") as of March 31, 1996 and the Company's results of
operations for the three months ended March 31, 1996 and 1995, and
statements of cash flows for the three months ended March 31, 1996 and
1995.
Certain reclassifications have been made to the March 31, 1995
Consolidated Financial Statements to conform to the March 31, 1996
Consolidated Financial Statements.
NOTE 2. RESULTS OF OPERATIONS
The results of operations for the three months ended March 31, 1996
are not indicative of the results to be expected for the full year.
NOTE 3. INCOME TAXES
Income taxes are provided for on the liability method, in accordance
with Financial Accounting Standards Board (FASB) Statement No. 109,
whereby deferred assets are recognized for deductible temporary
differences and operating loss and tax credit carryforwards and
deferred tax liabilities are recognized for taxable temporary
differences. Temporary differences are defined as the differences
between the reported amounts of assets and liabilities and their tax
basis. Deferred tax assets are reduced by a valuation allowance when,
in the opinion of management, it is more likely than not that some
portion or all of the deferred tax assets will not be realized.
Deferred tax assets and liabilities are adjusted for the effects of
changes in the tax laws and rates on the date of enactment.
<PAGE>
NOTE 4. EARNINGS PER COMMON SHARE
Earnings per common share are computed by dividing net income
available for common stockholders by the weighted average number of
shares of common stock outstanding during the period plus the
equivalent number of shares purchasable under common stock options, if
dilutive. Earnings per common share were affected by 28,514 shares
purchasable pursuant to exercisable options during the three months
ended March 31, 1996. Earnings per common share were not affected by
exercisable options during the three months ended March 31, 1995.
NOTE 5. ACCOUNTING FOR INVESTMENTS
The Company was required to adopt Financial Accounting Standards Board
Statement No. 115, Accounting for Certain Investments in Debt and
Equity Securities, which requires the Company to classify investment
securities as trading, available for sale or held to maturity.
Investments classified as trading and available for sale are to be
valued at their fair market value while investment securities
classified as held to maturity are valued at cost. At March 31, 1996,
the Company classified $42,025,000 of its investment portfolio as
available for sale and $17,628,000 as held to maturity. No amounts
were classified as trading. The adoption of this statement increased
the equity of the Company by approximately $703,000, net of deferred
taxes of approximately $246,000.
<PAGE>
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following commentary presents management's discussion and analysis
of the Company's financial performance and financial condition for the
first quarter ended March 31, 1996. The discussion is a supplement to
the Consolidated Financial Statements and should be read in
conjunction with those statements and footnotes.
RESULTS OF OPERATIONS
- ---------------------
OVERVIEW: Union Bankshares, Ltd. (the "Company") reported net income
- ---------
of $125,000 for the quarter ended March 31, 1996, a decrease of 63.0%
from net income of $338,000 for the first quarter of 1995. 1996 first
quarter earnings were positively impacted by a $239,000 increase in
net interest income and a $146,000 increase in gain on sale of
securities available for sale compared to the same period in 1995.
These improvements were offset by a $758,000 increase in noninterest
expense for the quarter ended March 31, 1996. $538,000 of the
increase in noninterest expense relates to the Company's redemption of
its outstanding convertible subordinated notes (the "Notes") as it was
required to write off the balance of the public offering costs
relating to the Notes and the one percent premium paid at redemption
of the Notes. The remainder of the increase in noninterest expense
relates primarily to branch opening and start-up expenses. Net income
per share was $.11 for the three months ended March 31, 1996 compared
to the $.29 per share for the same period in 1995. Return on average
assets and average equity were .31% and 3.33%, respectively, for the
first quarter of 1996 compared to .90% and 10.93%, respectively, for
the first quarter of 1995. Net income and return on average assets
and equity were similarly affected by the write-offs in connection
with the redemption of the Notes.
During the first quarter of 1996, the Bank's loan portfolio increased
$5.0 million and its deposits increased $1.0 million. In addition,
the Company's long term debt decreased $2.5 million as a result of the
redemption of the $6.5 million of the Notes and the subsequent funding
of the $4.0 million loan from Boatmen's First National Bank of Kansas
City ("Boatmen's"). In order to fund the loan growth and the balance
of the Note redemption, the Bank decreased its investment securities
portfolio by $7.0 million and the Company reduced its investment
securities portfolio by $2.5 million.
INTEREST INCOME: Interest income increased $329,000, or 11.6%, to
- ------------------
$3,173,000 for the first quarter of 1996 from $2,844,000 for the
comparable 1995 period. The Company's net yield on interest earning
assets on a fully tax equivalent basis was 8.98% for the first quarter
of 1996, which reflects an increase of 1 basis point (each basis point
equals 1/100 of 1%) from the comparable 1995 period. The average
yield
6<PAGE>
on loans decreased from 10.55% in the 1995 period to 10.42% in the
1996 period, and the average yield on securities held by the Company
decreased from 7.43% in the 1995 period to 7.29% in the 1996 period.
Interest income on loans was $433,000 greater in the 1996 period,
while interest income on securities decreased $101,000 in the 1996
period.
INTEREST EXPENSE: Interest expense increased $90,000, or 9.8%, to
- -----------------
$1,005,000 for the quarter ended March 31, 1996 from $915,000 for the
quarter ended March 31, 1995. This increase is primarily due to the
$9.8 million increase in interest bearing deposit accounts in the 1996
period compared to those in the 1995 period. Average rates paid on
interest bearing deposits increased 7 basis points to 3.43% in the
first quarter of 1996 from 3.36% in the first quarter of 1995.
NET INTEREST INCOME: Net interest income before provision for loan
- --------------------
loss was $2,168,000 for the quarter ended March 31, 1996, an increase
of $239,000, or 12.4%, over the first quarter of 1995. Net interest
margin increased 4 basis points from 6.20% in the 1995 period to 6.24%
in the 1996 period. The increase in net interest income is primarily
due to a $433,000 increase in interest income on loans, offset by a
$101,000 decrease in interest income on securities and a $90,000
increase in interest expense. The Company's average cost of funds for
the quarter ended March 31, 1996 was 5 basis points lower than in the
comparable 1995 period. The Company's average yield on interest
earning assets increased 1 basis point in the 1996 period compared to
the year earlier period from 8.97% to 8.98%.
NONINTEREST INCOME: Noninterest income increased $171,000, or 131.5%,
- -------------------
for the quarter ended March 31, 1996 to $301,000 from $130,000 for the
quarter ended March 31, 1995. This increase was primarily due to a
$146,000 increase in the gain on sale of securities available for sale
from a $35,000 loss in the first quarter of 1995 to a $111,000 gain in
the first quarter of 1996.
NONINTEREST EXPENSE: Noninterest expense increased $758,000, or
- ---------------------
46.8%, for the first quarter of 1996 to $2,377,000 compared to
$1,619,000 in the first quarter of 1995. This increase is primarily
the result of increases in (i) salaries and benefits relating
primarily to annual merit increases and staffing expense at the
branches; (ii) marketing, initial start-up costs and overhead expenses
of the branches; and (iii) a one time $538,000 expense for the write
off of the balance of the public offering costs and the one percent
premium paid on the redemption of the Notes.
PROVISION FOR LOAN LOSS
- -----------------------
The Company charged $45,000 to Provision for Loan Loss in the first
quarter of 1996 and $60,000 for the same period in 1995. The ratio of
7<PAGE>
loan loss reserve to total loans was 1.75% at March 31, 1996 and 1.77%
at March 31, 1995. The Company sets its loan loss reserve at a level
considered adequate to provide for anticipated loan losses based on
management's assessment of various factors affecting the loan
portfolio. These factors include a review of problem loans, business
conditions, loan loss experience and an overall evaluation of the
quality of the collateral, holding and disposal costs and costs of
capital. Provision for loan loss is a direct charge against income
and is determined by management based on the adequacy of the loan loss
reserve.
LIQUIDITY AND SOURCES OF FUNDS
- ------------------------------
The Company's total assets decreased 2.2% to $163.5 million at
March 31, 1996 from $167.2 at December 31, 1995. During the quarter
ended March 31, 1996 deposits increased $1.0 million to $141.2 million
at March 31, 1996 from $140.2 million at December 31, 1995. None of
the Company's deposits at March 31, 1996 were brokered deposits.
On April 1, 1996 the Company redeemed $6,486,000 of the $6,512,000
principal amount of Notes outstanding. The Company financed this
redemption by borrowing $4,000,000 from Boatmen's and using $2,551,000
of funds in the investment securities portfolio to fund the balance of
the redemption plus the $65,000 one percent premium paid to
noteholders. The remaining $26,000 of Notes were converted by the
noteholders into 2,042 shares of common stock.
The Loan Agreement with Boatmen's provides for interest on outstanding
amounts to be payable at Boatmen's corporate base rate, which is
currently 8.25%. The Loan Agreement provides for a one-year term
loan which is renewable by the Company unless the Company's credit
standing is unsatisfactory based on the criteria set forth below. The
Loan Agreement contains a twelve-year amortization schedule, with
interest only for the first two years, assuming renewal of the loan in
accordance with its terms.
Annual renewal of the loan is based on the compliance by the Bank with
the following criteria:
1. Capital Ratio of not less than 6.25%;
2. Return on Average Assets of not below 1.00%;
3. Loan Loss Reserve/Total Loans Ratio of not below 1.00%;
4. Non-Performing Loans/Total Loans Ratio of not greater than
2.00%;.
5. Debt Service Coverage Ratio of not less than 2:1; and
6. Absence of regulatory dividend restrictions.
In the event the Bank does not meet any of these criteria calculated
as of December 31 of each year and based on its financial statements,
the Company will have 90 days from the delivery of the financial
statements to cure the situation.
8<PAGE>
The loan is secured by the pledge of all of the shares of capital
stock of the Bank, and contains standard representations, warranties
and covenants.
The Company is also currently negotiating with Boatmen's for a
revolving line of credit in an amount not to exceed $3,000,000. Any
monies advanced under this line would be used solely for capital needs
of the Company or to purchase the stock of banks or bank holding
companies. This line of credit would be available for one year only,
with renewals to be negotiated each year. If any principal is
advanced on this line, the terms of the repayment would also be
negotiated depending upon the use of proceeds. Interest would be due
quarterly.
Management anticipates that the Company will continue to rely
primarily on customer deposits, sales and maturities of investment
securities, loan sales and loan repayments, as well as retained
earnings to provide liquidity. These funds are used to make loans, to
acquire investment securities and other assets and to fund continuing
operations. The Company believes that its customer deposits will
continue to provide a strong source of liquidity because of the high
percentage of core deposits, many of which are held as compensating
balances under long-standing loan relationships.
ASSET QUALITY
- -------------
The Company's lending activities are guided by its Statement of
Lending Policies and Procedures. These policies are annually reviewed
and approved by the Bank's Board of Directors. The Company
supplements its internal supervision and audits of its lending
operation with independent examinations performed by professional
experienced consultants and auditors. The Company monitors
concentrations of loans by collateral, purpose and industry. The
Company has no significant exposure to highly leveraged transactions
and has no foreign credits in its loan portfolio.
Total nonperforming assets were $18,000 and $192,000 at March 31, 1996
and December 31, 1995, respectively. Other Real Estate Owned (OREO)
was $0 at both March 31, 1996 and December 31, 1995. At March 31,
1996 securities held to maturity were $17.6 million, or 29.5% of the
total portfolio. Securities available for sale totaled $42.0 million,
or 70.5% of the total portfolio. Securities available for sale are
those securities which may be sold in response to changes in interest
rates, changes in the Company's short term liquidity needs or changes
in prepayment risk, and are stated at the lower of cost or estimated
market value. At March 31, 1996, the market value of investments
available for sale exceeded carrying value by approximately $949,000.
Securities held to maturity are considered longer term assets which
are normally held until maturity and are carried at amortized cost.
The carrying value of securities held to maturity exceeded market
value by approximately $11,000 at March 31, 1996. U.S. government
securities make
9<PAGE>
up $26.4 million, or 44.3% of the investment portfolio, and
obligations of states and political subdivisions (municipal
securities), comprise $33.2 million, or 55.7% of the portfolio at
March 31, 1996.
As noted in the Company's Form 10-KSB for the year ended December 31,
1995, management has generally sought to control the exposure of the
Company's securities portfolio to rising interest rates by maintaining
a position within a narrow range around an "earnings neutral position"
(i.e. the mix of assets and liabilities that generate a net interest
margin that is least affected by interest rate changes). The Company
uses a measurement tool known as dollar duration to help maintain an
earnings neutral position. As of March 31, 1996, the dollar duration
of the investment portfolio was 4.09 compared to 3.68 at December 31,
1995. This modest increase in dollar duration resulted from the
partial replacement of securities which were sold, matured or called
during the first quarter of 1996 with securities with the same or
higher yields but with longer maturities. The Company may also engage
in hedging transactions to control interest rate risk. The effect of
these efforts in any given period may be to negatively impact reported
net non-interest income and the interest earned on the securities.
CAPITAL RESOURCES
- -----------------
The Company's capital adequacy is a direct measurement of the overall
financial strength of the Company and its ability to absorb adverse
market conditions. In addition, the capital position of the Company
provides a mechanism to promote public confidence in the Company and
the Bank.
The Company's total stockholders' equity remained unchanged at $14.9
million at March 31, 1996 and at December 31, 1995. This condition in
stockholders' equity was due to the retention of earnings in the
current year and the conversion of the $26,000 of convertible
subordinated notes into common stock, less the net effect of FAS 115
which requires financial institutions to mark their available for sale
securities portfolio to market.
The Federal Reserve Board and FDIC guidelines require a minimum of a
4% Tier 1 core capital to risk-weighted assets ratio and an 8% total
qualifying capital to risk-weighted assets ratio. Due to the
Company's high level of capital and the level of risk in its current
asset mix, the Company's risk based capital ratios exceed the
regulatory minimum ratios. The Company's core capital to risk
weighted assets was 9.62% at March 31, 1996 and its total qualifying
capital to risk weighted assets was 10.91%. As of March 31, 1996 the
Bank exceeded the minimum regulatory risk based capital ratios.
10<PAGE>
"SAFE HARBOR" STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM
- ----------------------------------------------------------------------
ACT OF 1995.
- ------------
Statements which are not historical facts contained in this document
are forward looking statements that involve risks and uncertainties
that could cause actual results to differ from projected results.
Factors that could cause actual results to differ materially include,
among others: general economic conditions, economic conditions in the
Denver metropolitan area, the monetary policy of the Federal Reserve
Board, changes in interest rates, inflation, competition in the
banking business, changes in the state and federal regulatory regime
applicable to the Company's and the Bank's operations, the results of
financing efforts and other risk factors detailed in the Company's
Forms 10-KSB, 10-QSB and 8-K filed with the Securities and Exchange
Commission.
11<PAGE>
UNION BANKSHARES, LTD.
PART II - OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
b. The Registrant filed Form 8-K on March 1, 1996 reporting as an
"Other Events" the call for redemption of its convertible
subordinated notes.
12<PAGE>
SIGNATURES
In accordance with the requirements of the Exchange Act, the issuer
caused this report to be signed on its behalf by the undersigned
thereunto duly authorized.
Union Bankshares, Ltd.
----------------------
(Registrant)
May 10, 1996 Bruce E. Hall
---------------------
Bruce E. Hall
Vice President,Treasurer and
Secretary
(Authorized Officer and Principal
Financial Officer of the Registrant)
13
<TABLE> <S> <C>
<ARTICLE> 9
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED
FROM THE COMPANY'S INTERIM UNAUDITED FINANCIAL STATEMENTS FOR THE
THREE MONTHS ENDED MARCH 31, 1996, AND IS QUALIFIED IN ITS
ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> MAR-31-1996
<CASH> 12,032,000
<INT-BEARING-DEPOSITS> 101,846,000
<FED-FUNDS-SOLD> 0
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 42,025,000
<INVESTMENTS-CARRYING> 58,684,000
<INVESTMENTS-MARKET> 59,642,000
<LOANS> 86,345,000
<ALLOWANCE> (1,513,000)
<TOTAL-ASSETS> 163,530,000
<DEPOSITS> 141,233,000
<SHORT-TERM> 2,475,000
<LIABILITIES-OTHER> 908,000
<LONG-TERM> 4,000,000
0
0
<COMMON> 9,411,000
<OTHER-SE> 5,503,000
<TOTAL-LIABILITIES-AND-EQUITY> 163,530,000
<INTEREST-LOAN> 2,172,000
<INTEREST-INVEST> 3,173,000
<INTEREST-OTHER> 0
<INTEREST-TOTAL> 3,173,000
<INTEREST-DEPOSIT> 836,000
<INTEREST-EXPENSE> 1,005,000
<INTEREST-INCOME-NET> 2,168,000
<LOAN-LOSSES> 0
<SECURITIES-GAINS> 111,000
<EXPENSE-OTHER> 2,377,000
<INCOME-PRETAX> 47,000
<INCOME-PRE-EXTRAORDINARY> 47,000
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 125,000
<EPS-PRIMARY> 0.11
<EPS-DILUTED> 0.11
<YIELD-ACTUAL> 8.98
<LOANS-NON> 18,000
<LOANS-PAST> 18,000
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 1,448,000
<CHARGE-OFFS> 0
<RECOVERIES> 20,000
<ALLOWANCE-CLOSE> 1,513,000
<ALLOWANCE-DOMESTIC> 1,513,000
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
