<PAGE>
U.S. 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.
[_] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
OF 1934 FOR THE TRANSITION PERIOD FROM ____________ TO ______________.
COMMISSION FILE NUMBER 22-25144
FIRST STATE BANCORPORATION
(EXACT NAME OF SMALL BUSINESS ISSUER AS SPECIFIED IN ITS CHARTER)
NEW MEXICO 85-0366665
(STATE OF INCORPORATION) (IRS EMPLOYER
IDENTIFICATION NO.)
111 LOMAS AVENUE N.W.
ALBUQUERQUE, NEW MEXICO 87102
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES) (ZIP CODE)
(505) 241-7500
(ISSUER'S TELEPHONE NUMBER)
Check whether the issuer (1) has 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 XX 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: 2,583,572 shares of common stock, no
par value, outstanding as of November 6, 1997.
TRANSITIONAL SMALL BUSINESS DISCLOSURE FORMAT
(Check One):
Yes ___ No XX
--
<PAGE>
FIRST STATE BANCORPORATION
<TABLE>
<CAPTION>
Page
----
PART I. FINANCIAL INFORMATION
<S> <C>
Item 1. Financial Statements 1
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations 5
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 7
SIGNATURES 7
</TABLE>
<PAGE>
PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
FIRST STATE BANCORPORATION AND SUBSIDIARY
Consolidated Condensed Balance Sheets
(unaudited)
<TABLE>
<CAPTION>
September 30, December 31,
Assets 1997 1996
------ ---- ----
<S> <C> <C>
Cash and due from banks $ 22,394,558 $ 15,711,932
Federal funds sold 8,400,000 -
-----------------------------
Total cash and cash equivalents 30,794,558 15,711,932
Investment securities:
Held to maturity (at amortized cost, market value of $13,333,000 at
September 30, 1997, and $19,597,000 at December 31, 1996) 13,287,794 19,547,433
Available for sale (at market, amortized cost of $33,671,330 at
September 30, 1997, and $20,979,000 at December 31, 1996) 33,742,206 21,048,140
-----------------------------
Total Investments 47,030,000 40,595,573
-----------------------------
Loans and leases net of unearned interest 285,872,436 250,926,023
Less allowance for loan and lease losses 3,024,011 2,510,155
-----------------------------
Net loans and leases 282,848,425 248,415,868
Other assets 22,903,795 20,245,072
-----------------------------
Total assets $383,576,778 $324,968,445
=============================
Liabilities and Stockholders' Equity
------------------------------------
Liabilities:
Deposits:
Non-interest-bearing $ 65,831,597 $ 52,038,847
Interest-bearing 261,225,300 225,314,476
-----------------------------
Total deposits 327,056,897 277,353,323
Other liabilities 29,813,292 26,564,610
-----------------------------
Total liabilities 356,870,189 303,917,933
Stockholders' equity:
Preferred stock, no par value, 1,000,000 shares authorized, none
issued or outstanding
Common stock, no par value, 20,000,000 shares authorized, issued and
outstanding 2,582,206 at September 30, 1997 and 2,172,357 at
December 31, 1996 15,891,186 11,906,581
-----------------------------
Retained earnings 10,768,625 9,097,986
Unrealized gains on investment securities available for sale 46,778 45,945
-----------------------------
Total stockholders' equity 26,706,589 21,050,512
-----------------------------
Total liabilities and stockholders' equity $383,576,778 $324,968,445
=============================
Book value per share $10.34 $9.69
=============================
Tangible book value per share $10.00 $9.26
=============================
</TABLE>
See accompanying notes to consolidated condensed financial statements.
1
<PAGE>
FIRST STATE BANCORPORATION AND SUBSIDIARY
Consolidated Condensed Statements of Operations
For the three and nine months ended September 30, 1997 and 1996
(unaudited)
<TABLE>
<CAPTION>
Three months Three months Nine months Nine months
Ended Ended Ended Ended
September 30, September 30, September 30, September 30,
1997 1996 1997 1996
-------------------------------------------------------------
<S> <C> <C> <C> <C>
Interest Income:
Interest and fees on loans and leases $7,384,925 $6,007,080 $20,882,596 $16,911,804
Interest on investment securities:
Taxable 720,140 515,573 2,098,892 1,469,996
Non-taxable 42,727 45,717 129,600 154,248
Federal funds sold 67,194 42,978 143,088 137,540
-------------------------------------------------------------
Total interest income 8,214,986 6,611,348 23,254,176 18,673,588
-------------------------------------------------------------
Interest expense:
Deposits 2,719,857 2,171,577 7,891,355 6,052,841
Short-term borrowings 165,112 270,372 580,061 606,261
Long-term debt and capital leases 259,894 72,001 511,063 290,627
-------------------------------------------------------------
Total interest expense 3,144,863 2,513,950 8,982,479 6,949,729
-------------------------------------------------------------
Net interest income before provision for loan and lease losses 5,070,123 4,097,398 14,271,697 11,723,859
Provision for loan and lease losses 427,500 262,500 1,087,500 896,903
-------------------------------------------------------------
Net interest income after provision for loan and lease losses 4,642,623 3,834,898 13,184,197 10,826,956
-------------------------------------------------------------
Other Income:
Service charges on deposit accounts 367,925 291,886 1,023,947 822,837
Other banking service fees 52,986 40,569 145,262 134,673
Credit card discount income 330,017 236,547 850,728 520,922
Operating lease income 266,649 120,869 759,913 120,869
Gain on sale or call of investment securities - 10,000 - 10,156
Other 172,833 130,094 427,505 356,954
-------------------------------------------------------------
Total other income 1,190,410 829,965 3,207,355 1,966,411
-------------------------------------------------------------
Other expenses:
Salaries and employee benefits 1,926,563 1,642,378 5,452,013 4,639,971
Occupancy 528,886 447,229 1,574,833 1,282,908
Data Processing 160,036 48,542 442,794 539,169
Credit card interchange 196,598 163,538 508,903 397,435
Equipment 322,851 332,928 935,373 862,593
Leased equipment depreciation 172,722 70,942 494,567 70,942
Legal, accounting and consulting 90,268 116,175 286,625 320,939
Marketing 256,000 156,408 657,877 476,059
Other real estate owned 58,862 31,157 182,361 39,024
Amortization of intangibles 46,176 47,235 143,580 141,709
Other 823,365 628,558 2,231,239 1,859,109
-------------------------------------------------------------
Total other expenses 4,582,327 3,685,090 12,910,165 10,629,858
-------------------------------------------------------------
Income before income taxes 1,250,706 979,773 3,481,387 2,163,509
Income tax expense 384,313 362,886 1,134,894 766,825
-------------------------------------------------------------
Net income $ 866,393 $ 616,887 $ 2,346,493 $ 1,396,684
=============================================================
Earnings per common and common equivalent share $0.32 $0.29 $0.92 $0.67
=============================================================
Earnings per common share assuming full dilution $0.30 $0.26 $0.86 $0.62
=============================================================
Dividends per common share $0.05 $0.05 $0.15 $0.15
=============================================================
</TABLE>
See accompanying notes to consolidated condensed financial statements.
2
<PAGE>
FIRST STATE BANCORPORATION AND SUBSIDIARY
Consolidated Condensed Statements of Cash Flows
For the three and nine months ended September 30, 1997 and 1996
(unaudited)
<TABLE>
<CAPTION>
Three months Three months Nine months Nine months
Ended Ended Ended Ended
September 30, September 30, September 30, September 30,
1997 1996 1997 1996
---------------------------------------------------------------
<S> <C> <C> <C> <C>
Operating activities:
Net Income $ 866,393 $ 616,887 $ 2,346,493 $ 1,396,684
---------------------------------------------------------------
Adjustments to reconcile net income to cash provided by operations:
Provisions for loan and lease losses 427,500 262,500 1,087,500 896,903
Provision for decline in value of other real estate owned 33,693 12,500 75,000 12,500
Depreciation and amortization 706,409 266,141 1,634,155 953,092
Gain on call or sale of investment securities - (10,000) - (10,156)
(Increase) decrease in accrued interest receivable 75,159 (86,396) (359,099) (877,402)
Increase in other assets, net (97,269) (372,312) (1,573,895) (198,839)
Increase in other liabilities, net 336,148 483,410 570,767 418,305
---------------------------------------------------------------
Total adjustments 1,481,640 555,843 1,434,428 1,194,403
---------------------------------------------------------------
Net cash provided by operating activities 2,348,033 1,172,730 3,780,921 2,591,087
---------------------------------------------------------------
Cash flows from investing activities:
Net increase in loans (12,357,361) (14,104,536) (36,027,114) (52,868,435)
Purchases of investment securities available for sale (9,542,600) (4,252,056) (24,360,968) (7,858,056)
Maturities of investment securities available for sale 10,200,000 2,500,000 11,650,000 8,500,000
Purchases of investment securities held to maturity (1,000,000) - (1,000,000) (6,243,339)
Maturities of investment securities held to maturity 3,550,000 630,000 7,270,000 6,765,000
Sale of investment securities available for sale - - - 500,156
Purchases of premises and equipment (480,231) (1,420,653) (1,593,333) (2,573,335)
Sales of premises and equipment - 1,328,166 - 2,537,649
Sales of other real estate owned - - 622,863 67,917
Additions to other real estate owned, net - (50,156) - (194,354)
---------------------------------------------------------------
Net cash used in investing activities (9,630,192) (15,369,235) (43,438,552) (51,366,797)
---------------------------------------------------------------
Cash flows from financing activities:
Net increase in interest bearing deposits 13,434,487 17,553,985 35,910,824 30,258,359
Net increase in non-interest bearing deposits 1,396,886 776,563 13,792,750 7,689,682
Net increase (decrease) in securities sold under
repurchase agreements 731,317 1,312,726 (1,854,384) 4,045,724
Federal Home Loan Bank borrowings, net - (4,000,000) (4,970,000) 4,000,000
Issuance of subordinated debentures - - 13,800,000 -
Payments on long-term debt (13,900) (8,516) (36,223) (25,121)
Federal funds purchased, net - 300,000 (1,500,000) 4,270,000
Common stock issued 28,979 7,438 273,145 142,747
Dividends paid (129,080) (102,749) (367,855) (301,083)
Exercise of put warrants - - (308,000) -
---------------------------------------------------------------
Net Cash provided by financing activities: 15,448,689 15,839,447 54,740,257 50,080,308
---------------------------------------------------------------
Increase in cash and cash equivalents 8,166,530 1,642,942 15,082,626 1,304,598
Cash and cash equivalents at beginning of period 22,628,028 14,448,922 15,711,932 14,787,266
---------------------------------------------------------------
Cash and cash equivalents at end of period $ 30,794,558 $ 16,091,864 $ 30,794,558 $ 16,091,864
===============================================================
Supplemental disclosure of noncash investing and financing
activities:
Additions to other real estate owned in settlement of loans $ 413,479 $ 227,978 $ 507,057 $ 499,613
===============================================================
Issuance of common stock upon conversion of subordinated
debentures - - $ 3,711,460 -
===============================================================
Issuance of long term debt for purchase of premises and
equipment - - $ 1,050,000 -
===============================================================
</TABLE>
See accompanying notes to consolidated condensed financial statements.
3
<PAGE>
FIRST STATE BANCORPORATION AND SUBSIDIARY
Notes to Consolidated Condensed Financial Statements
(Unaudited)
1. CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
The accompanying consolidated condensed financial statements are unaudited and
include the accounts of First State Bancorporation and its subsidiary, First
State Bank of Taos (100% owned), collectively the "Company."
All significant intercompany accounts and transactions have been eliminated.
Information contained in the consolidated condensed financial statements and
notes thereto of the Company should be read in conjunction with the Company's
consolidated financial statements and notes thereto contained in the Company's
Annual Report on Form 10-KSB for the year ended December 31, 1996.
The consolidated condensed financial statements have been prepared in accordance
with generally accepted accounting principles for interim financial information
and with the instructions to Form 10-QSB. Accordingly, they do not include all
of the information and footnotes required by generally accepted accounting
principles for complete financial statements. In the opinion of management, all
adjustments (consisting only of normally recurring accruals) considered
necessary for a fair presentation have been included. Operating results for the
three and nine month periods ended Septemeber 30, 1997, are not necessarily
indicative of the results that may be expected for the year ending December 31,
1997.
Net income per common share and common equivalent share are computed by dividing
net income applicable to common stock by the total of the weighted average
number of common shares outstanding and any additional dilutive effect of stock
options and warrants outstanding during the respective periods. The dilutive
effect of stock options and warrants is computed using the average market price
of the Company's common stock for the period.
Net income per common share, assuming full dilution, is computed based on the
weighted average number of common shares outstanding during the period, and any
additional dilutive effect of stock options and warrants during the period. The
dilutive effect of outstanding stock options and warrants is computed using the
greater of the closing price or the average market price of the Company's common
stock for the period. Net income per common share, assuming full dilution, also
includes the dilution which would result if the convertible debentures
outstanding during the period had been converted at the beginning of the period.
The number of shares used in the net income per share calculations at September
30, 1997, and 1996, are as follows:
<TABLE>
<CAPTION>
Three months Three months Nine months Nine months
ended ended ended ended
September 30, September 30, September 30, September 30,
1997 1996 1997 1996
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Earnings per common and common equivalent share 2,695,461 2,147,447 2,547,721 2,099,908
Earnings per common share assuming full dilution 3,525,045 2,656,321 3,164,754 2,653,914
</TABLE>
2. ACCOUNTING STANDARD ISSUED NOT YET IMPLEMENTED
EARNINGS PER SHARE
In February 1997, the Financial Accounting Standards Board (FASB) issued
Statement of Financial Accounting Standards (SFAS) No. 128, Earnings Per Share,
which supersedes Accounting Practice Bulletin No. 15, Earnings Per Share. SFAS
No. 128, which specifies the computation, presentation, and disclosures
requirements for earnings per share (EPS), was issued to simplify the
computation of EPS. It replaces the presentation of primary EPS with a
presentation of basic EPS and fully diluted EPS with diluted EPS. Basic EPS,
unlike primary EPS, excludes dilution and is computed by dividing income
available to common stockholders by the weighted-average number of common shares
outstanding for the period. Diluted EPS reflects the potential
4
<PAGE>
dilution that could occur if securities or other contracts to issue common stock
were exercised or converted into common stock. Diluted EPS is computed similarly
to fully diluted EPS under APB 15. SFAS No. 128 is effective for financial
statements for both interim and annual periods ending after December 15, 1997.
The impact of SFAS No. 128 is not expected to be material in relation to the
consolidated financial statements.
REPORTING COMPREHENSIVE INCOME
In June, 1997, the FASB issued SFAS No. 130, Reporting Comprehensive Income.
SFAS No. 130 requires disclosure in the financial statements of comprehensive
income that encompasses earnings and those items currently required to be
reported directly in the equity section of the balance sheet, such as unrealized
gains and losses on available-for-sale securities. SFAS No.130 is effective for
the Company's financial statements beginning in 1998. Earlier application is
permitted.
SEGMENTS
In June, 1997, the FSAB issued SFAS No. 131, Disclosure About Segments of an
Enterprise and Related Information. SFAS No. 131 requires disclosures about
segments of an enterprise and related information about the different types of
business activities in which an enterprise engages and the different economic
environments in which it operates. SFAS No.131 is effective for the Company's
financial statements beginning in 1998.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
CONSOLIDATED CONDENSED BALANCE SHEETS
The Company's total assets increased by $58.6 million from $325.0 million as of
December 31, 1996, to $383.6 million as of September 30, 1997, due to internal
growth. For the first nine months of 1997, loans and leases increased by $35.0
million from $250.9 million to $285.9 million while investment securities
increased by $6.4 million from $40.6 million to $47.0 million. For the first
nine months of 1997, other assets increased $2.7 million from $20.2 million to
$22.9 million.
The increase in loans and leases is due largely to the Company's efforts to
increase its market share and increased economic activity and demand for loans
and leases in the Company's market areas. Total commercial loans increased by
approximately $8.1 million, real estate loans increased by approximately $13.3
million and leases increased by approximately $10.6 million.
Investment securities increased by $6.4 million as a result of an increase in
deposits and proceeds from the 7.5% convertible subordinated debenture offering
in the second quarter of 1997.
Deposits, which are the Company's main source of funds for loans, investments,
and federal funds sold, increased by $49.7 million from $277.4 million as of
December 31, 1996, to $327.1 million as of September 30, 1997. Non-interest-
bearing deposits increased by $13.8 million and interest-bearing deposits
increased by $35.9 million. For the first nine months of 1997, other
liabilities increased by $3.2 million due to the issuance of $13.8 million in
7.5% convertible subordinated debentures offset by the conversion into common
stock of $3.8 million in 7% convertible subordinated debentures, the repayment
of $5.0 million in Fedearl Home Loan Bank advances and a $1.8 million decrease
in securities sold under repurchase agreements and a $1.5 million decrease in
federal funds purchased.
CONSOLIDATED RESULTS OF OPERATIONS FOR THE THREE MONTHS ENDED SEPTEMBER 30, 1997
Net income for the Company for the three months ended September 30, 1997, was
$866,000, an increase of $249,000 or 40% from $617,000 for the same period of
1996. The Company's annualized return on average assets was 0.93% for the
third quarter of 1997, compared to 0.83% for the same period of 1996.
The provision for loan and lease losses increased by $165,000 from $262,500 for
the three months ended September 30, 1996, to $427,500 for the three months
ended September 30, 1997. This increase is due to loan and lease growth and an
increase in non-performing assets.
5
<PAGE>
Net interest income before provision for loan and lease losses increased $1.0
million to $5.1 million for the three months ended September 30, 1997, from $4.1
million for the three months ended September 30, 1996, primarily due to
increased loan, lease, and investment security volume. The Company's net
interest margin decreased to 6.13% for the period ended September 30, 1997, from
6.17% for the period ended September 30, 1996.
Total non-interest income increased by $400,000 to $1.2 million for the three
months ended September 30, 1997, compared to $0.8 million for the same period of
1996, primarily due to an increase in credit card discount income of $93,000,
an increase in income from operating leases of $146,000 and increased service
charge income of $76,000.
Total non-interest expense increased by $900,000 to $4.6 million for the third
quarter of 1997, compared to $3.7 million for the same period of 1996. The
increase was the result of increased staffing, pay raises and related benefits
$285,000, leased equipment depreciation $102,000, data processing $111,000, and
marketing $100,000. These increases are primarily related to asset and deposit
growth. The increased marketing expense results from advertising campaigns to
target customers of a recently acquired institution.
CONSOLIDATED RESULTS OF OPERATIONS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1997
Net income for the Company for the nine months ended September 30, 1997, was
$2.3 million, an increase of $900,000 or 64% from $1.4 million for the same
period of 1996. The Company's annualized return on average assets was 0.89% for
the nine months period of 1997, compared to 0.67% for the same period of 1996.
The provision for loan and lease losses increased by $203,000 from $897,000 for
the nine months ended September 30, 1996, to $1.1 million for the nine months
ended September 30, 1997. This increase is due to loan and lease growth and an
increase in non-performing assets.
Net interest income before provision for loan and lease losses increased $2.6
million to $14.3 million for the nine months ended September 30, 1997, from
$11.7 million for the nine months ended September 30, 1996, primarily due to
increased loan, lease, and investment securities volume. The Company's net
interest margin decreased to 6.02% for the period ended September 30, 1997, from
6.33% for the period ended September 30, 1996. This decrease was the result of
lower yields on loans and leases due to increased competition.
Total non-interest income increased by $1.2 to $3.2 million for the nine months
ended September 30, 1997, compared to $2.0 million for the same period of 1996,
primarily due to an increase in credit card discount income of $330,000, an
increase in income from operating leases of $639,000, and increased service
charge income of $201,000.
Total non-interest expense increased by $2.3 million to $12.9 million for the
first nine months of 1997, compared to $10.6 million for the same period of
1996. The increase was the result of increased staffing, pay raises and related
benefits $812,000, leased equipment depreciation $424,000, credit card
interchange $112,000, other real estate owned $143,000, occupancy $292,000, and
marketing $182,000. These increases are related primarily to asset and deposit
growth.
LIQUIDITY AND CAPITAL EXPENDITURES
The Company's primary sources of funds are customer deposits, loan repayments,
and maturities of investment securities. The Company has additional sources of
liquidity in the form of borrowings. Borrowings include federal funds
purchased, securities sold under repurchase agreements and borrowings from the
Federal Home Loan Bank.
FORWARD LOOKING STATEMENTS
Statements which are forward looking are not historical facts, and involve risks
and uncertainties that could cause the Company's results to differ materially
from those in any forward looking statements. These risks include the possible
loss of key personnel, need for additional capital should the Company experience
faster than anticipated growth, changes in local economic conditions, interest
rate risk, factors which could affect the Company's ability to compete in its
trade areas, changes in regulation and governmental policies, and the risks
described in the Company's Securities and Exchange Commission filings.
6
<PAGE>
ITEM 6.EXHIBIT 27 FINANCIAL DATA SCHEDULE
SIGNATURES
In accordance with the requirements of the Exchange Act, the registrant caused
this report to be signed on its behalf by the undersigned, thereunto duly
authorized.
FIRST STATE BANCORPORATION
Date: November 6, 1997 By: Michael R. Stanford
---------------------------------------
Michael R. Stanford, President & Chief Executive
Officer
Date: November 6, 1997 By: H. Patrick Dee
---------------------------------------
H. Patrick Dee, Executive Vice President & Chief
Operating Officer
Date: November 6, 1997 By: Brian C. Reinhardt
---------------------------------------
Brian C. Reinhardt, Senior Vice President and
Chief Financial Officer
7
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 9
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM CONSOLIDATED
CONDENSED FINANCIAL STATEMENTS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE 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> 22,394,558
<INT-BEARING-DEPOSITS> 0
<FED-FUNDS-SOLD> 8,400,000
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 33,742,206
<INVESTMENTS-CARRYING> 13,287,794
<INVESTMENTS-MARKET> 13,333,000
<LOANS> 285,872,436
<ALLOWANCE> 3,024,011
<TOTAL-ASSETS> 383,576,778
<DEPOSITS> 327,056,897
<SHORT-TERM> 12,074,181
<LIABILITIES-OTHER> 2,655,265
<LONG-TERM> 15,083,895
0
0
<COMMON> 26,659,811
<OTHER-SE> 46,778
<TOTAL-LIABILITIES-AND-EQUITY> 383,576,778
<INTEREST-LOAN> 20,882,596
<INTEREST-INVEST> 2,371,580
<INTEREST-OTHER> 0
<INTEREST-TOTAL> 23,254,176
<INTEREST-DEPOSIT> 7,891,355
<INTEREST-EXPENSE> 8,982,479
<INTEREST-INCOME-NET> 14,271,697
<LOAN-LOSSES> 1,087,500
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 12,910,165
<INCOME-PRETAX> 3,481,387
<INCOME-PRE-EXTRAORDINARY> 2,346,493
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 2,346,493
<EPS-PRIMARY> 0.92
<EPS-DILUTED> 0.86
<YIELD-ACTUAL> 5.58
<LOANS-NON> 3,707,000
<LOANS-PAST> 190,000
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 160,000
<ALLOWANCE-OPEN> 2,510,000
<CHARGE-OFFS> 700,000
<RECOVERIES> 126,000
<ALLOWANCE-CLOSE> 3,024,000
<ALLOWANCE-DOMESTIC> 3,024,000
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
