<PAGE>
1
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
[X] QUARTERLY REPORT UNDER SECTION 13 OF 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 1998
OR
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT
For the transition period from to
--------------- -----------
Commission file Number 33-58936
Dimeco, Inc.
--------------------------------
(Exact name of registrant as specified in its charter)
Pennsylvania 23-2250152
--------------------------------------------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
820 Church Street
-----------------
Honesdale, PA 18431
-------------------
(Address of principal executive offices)
(717) 253-1970
--------------
(Issuer's Telephone Number)
Not Applicable
-------------------------------
(Former name, former address and former fiscal year, if changed since last
report)
Check whether the issuer (1) filed all reports required to be filed by
Sections 13 or 15(d) of the Exchange Act during the past 12 months (or for
such shorter period that the Registrant was required to file such reports),
and (2) has been subject to such filing requirements for the past 90 days.
Yes X No
--- ---
As of August 5, 1998, there were 672,164 shares outstanding of the issuer's
common stock with an aggregate market value of approximately $32,936,018.
<PAGE>
Dimeco, Inc.
INDEX
Page
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
Consolidated Balance Sheet (unaudited) as of June 30,
1998 and December 31, 1997 3
Consolidated Statement of Income (unaudited) for the
three months and the six months ended
June 30, 1998 and 1997 4
Consolidated Statement of Cash Flows (unaudited) for
the six months ended June 30, 1998 and 1997 5
Consolidated Statement of Changes in Stockholders' Equity 6
Notes to Consolidated Financial Statements (unaudited) 7
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operation 8-12
PART II - OTHER INFORMATION
Item 1. Legal Proceedings 13
Item 2. Changes in Securities 13
Item 3. Default Upon Senior Securities 13
Item 4. Submissions of Matters to a Vote of Security Holders 13
Item 5. Other Information 13
Item 6. Exhibits and Reports on Form 8-K 13
SIGNATURES 14
2
<PAGE>
Dimeco, Inc.
CONSOLIDATED BALANCE SHEET (Unaudited)
June 30, December 31,
1998 1997
-------- ------------
Assets
Cash and due from banks $ 1,662,715 $ 1,358,842
Interest-bearing deposits in
other banks 4,762,027 3,121,708
Federal funds sold 2,830,000 -
------------- -------------
Total cash and cash equivalents 9,254,742 4,480,550
------------- -------------
Mortgage loans held for sale 923,729 156,871
Investment securities held to
maturity (market value $4,529,498
and $4,602,088) 4,475,698 4,542,486
Investment securities available
for sale 30,748,567 30,702,190
Loans (net of unearned income
of $1,098,806 and $1,078,581) 112,402,187 108,814,535
Less allowance for loan losses 1,597,119 1,511,123
------------- -------------
Net loans 110,805,068 107,303,412
------------- -------------
Premises and equipment, net 2,946,027 2,945,303
Other real estate 782,000 625,619
Accrued interest receivable 848,458 859,177
Other assets 1,865,872 1,805,495
------------- -------------
TOTAL ASSETS $ 162,650,161 $ 153,421,103
============= =============
Liabilities
Deposits:
Noninterest-bearing $ 13,795,121 $ 12,965,190
Interest-bearing 129,147,139 122,136,196
------------- -------------
Total deposits 142,942,260 135,101,386
------------- -------------
Securities sold under agreements
to resell 3,117,778 2,390,044
Accrued interest payable 680,108 701,099
Other liabilities 598,188 707,929
------------- -------------
TOTAL LIABILITIES 147,338,334 138,900,458
------------- -------------
Stockholders' Equity
Common stock, $.50 par value;
3,000,000 shares authorized,
728,842 and 726,216 shares issued
and outstanding 364,420 363,108
Capital surplus 2,746,482 2,662,333
Retained earnings 12,204,825 11,547,197
Less: Treasury stock; (1,525 shares
at cost) - (40,407)
Net unrealized loss on securities
available for sale (3,900) (11,586)
------------- -------------
TOTAL STOCKHOLDERS' EQUITY 15,311,827 14,520,645
------------- -------------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $ 162,650,161 $ 153,421,103
============ =============
See accompanying notes to the consolidated financial statements.
3
<PAGE>
Dimeco, Inc.
CONSOLIDATED STATEMENT OF INCOME (Unaudited)
<TABLE>
<CAPTION>
Three Months Six Months
Ended June 30, Ended June 30,
-------------- --------------
1998 1997 1998 1997
<S> <C> <C> <C> <C>
INTEREST AND DIVIDEND INCOME
Interest and fees on loans $ 2,501,989 $2,367,310 $4,928,754 $4,589,517
Interest-bearing deposits in other banks 62,299 6,271 123,430 12,008
Federal funds sold and securities
purchased under agreement to resell 140,720 30,479 269,497 47,128
Investment securities:
Taxable 293,719 290,823 568,568 600,126
Exempt from federal income tax 48,126 62,644 99,637 128,496
----------- ---------- ---------- ----------
Total interest income 3,046,853 2,757,527 5,989,886 5,377,275
----------- ---------- ---------- ----------
INTEREST EXPENSE
Deposits 1,345,010 1,159,588 2,657,603 2,283,364
Borrowed funds - 670 - 5,582
Securities sold under agreements to repurchase 17,942 - 28,717 -
----------- ---------- ----------- ---------
Total interest expense 1,362,952 1,160,258 2,686,320 2,288,946
----------- ---------- ----------- ---------
NET INTEREST INCOME 1,683,901 1,597,269 3,303,566 3,088,329
Provision for loan losses 91,500 136,500 181,000 271,500
----------- ---------- ----------- ---------
NET INTEREST INCOME AFTER PROVISION
FOR LOAN LOSSES 1,592,401 1,460,769 3,122,566 2,816,829
----------- ---------- ----------- ---------
OTHER INCOME
Service charges on deposit accounts 56,339 56,062 104,067 106,748
Gain on loans available for sale 12,717 6,037 85,409 20,031
Other operating income 124,824 97,228 241,903 199,384
----------- ---------- ----------- ---------
Total other income 193,880 159,327 431,379 326,163
----------- ---------- ----------- ---------
OTHER EXPENSES
Salaries and employee benefits 490,024 494,286 1,001,949 1,027,730
Occupancy expense, net 82,617 84,011 170,147 169,713
Furniture and equipment expense 88,082 82,468 170,999 152,651
Operations of other real estate 14,111 3,107 46,808 11,891
Other operating expense 390,884 337,050 722,272 632,787
---------- ---------- --------- ---------
Total other expenses 1,065,718 1,000,922 2,112,175 1,994,772
---------- ---------- --------- ---------
Income before income taxes 720,563 619,174 1,441,770 1,148,220
Income tax expense 222,400 189,400 456,535 351,100
---------- ---------- --------- ---------
NET INCOME $ 498,163 $ 429,774 $ 985,235 $ 797,120
========== ========== ========== ==========
NET EARNINGS PER SHARE $ 0.68 $ 0.59 $ 1.35 $ 1.10
========== ========== ========== ==========
</TABLE>
See accompanying notes to consolidated financial statements.
4
<PAGE>
Dimeco, Inc.
STATEMENT OF CASH FLOWS (Unaudited)
Six Months
Ended June 30,
1998 1997
------ ------
OPERATING ACTIVITIES
Net income $ 985,235 $ 797,120
Adjustments to reconcile net income to
net cash provided by operating activities:
Provision for loan losses 181,000 271,500
Depreciation 167,805 166,279
Amortization of investments, net (283,861) (2,902)
Decrease (increase) in accrued
interest receivable 10,719 28,028
Net (increase) decrease in loans
available for sale (766,858) 1,979
Amortization of net deferred loan
origination fees (18,388) (38,446)
Other, net (157,147) (206,673)
--------- ----------
Net cash provided by operating
activities 118,505 1,016,885
--------- ----------
INVESTING ACTIVITIES
Investment securities available for sale:
Proceeds from maturities or paydowns
of investment securities 48,297,286 13,247,217
Purchase of investment securities (48,050,000) (11,250,265)
Investment securities:
Proceeds from maturities or paydowns
of investment securities 2,940,000 7,461,001
Purchase of investment securities (2,871,368) (500,000)
Net increase in loans (3,835,649) (7,181,790)
Purchase of premises and equipment (168,529) (98,680)
Proceeds from sale of other real estate 14,350 -
---------- ----------
Net cash provided by (used for)
investing activities (3,673,910) 1,677,483
---------- ----------
FINANCING ACTIVITIES
Increase (decrease) in deposits, net 7,840,874 3,937,693
Increase in securities sold under
agreements to repurchase 1,512,734 -
Decrease in short term borrowings (785,000) -
Proceeds from dividend reinvestment plan 125,868 103,532
Dividends paid (364,879) (260,038)
Purchase Treasury Stock - (148,400)
---------- ----------
Net cash provided by financing activities 8,329,597 3,632,787
---------- ----------
Increase (decrease) in cash
and cash equivalents 4,774,192 6,327,155
Cash and cash equivalents at beginning
of period 4,480,550 6,513,692
---------- -----------
Cash and cash equivalents at end of period $9,254,742 $12,840,847
========== ===========
See accompanying notes to consolidated financial statements.
5
<PAGE>
<TABLE>
<CAPTION>
Dimeco, Inc.
CONSOLIDATED STATEMENT OF CHANGES IN STOCK HOLDERS' EQUITY
Common Capital Retained Treasury Net Unrealized Total Comprehensive
Stock Surplus Earnings Stock Gain (Loss) Stockholders' Income
on Securities Equity
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Balance, December 31, 1997 $ 363,108 $ 2,662,333 $11,547,197 $ (40,407) $ (11,586) $14,520,645
Net Income 985,235 985,235 $ 985,235
Net unrealized loss on
securities available
for sale 7,686 7,686 7,686
Dividend reinvestment plan 1,312 84,149 40,407 125,868
Cash dividends (.45 per
share) (327,607) (327,607)
----------- ----------- ----------- ------------ ----------- ----------- -----------
Balance, June 30, 1998 $ 364,420 $ 2,746,482 $12,204,825 $ - $ (3,900) $15,311,827 $ 992,921
----------- ----------- ----------- ------------ ----------- ----------- -----------
</TABLE>
See accompanying notes to the consolidated financial statements.
6
<PAGE>
Dimeco, Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
NOTE - BASIS OF PRESENTATION
The consolidated financial statements include the accounts of Dimeco, Inc.
(the "Company") and its wholly-owned subsidiary The Dime Bank (the "Bank").
All significant intercompany balances and transactions have been eliminated in
the consolidation.
The accompanying unaudited consolidated financial statements have been
prepared in accordance with the instructions to Form 10-QSB and, therefore, do
not necessarily include all information that would be included in audited
financial statements. The information furnished reflects all adjustments
which are, in the opinion of management, necessary for a fair statement of the
results of operations. All such adjustments are of a normal recurring nature.
The results of operations for the interim periods are not necessarily
indicative of the results to be expected for the full year.
Certain comparative amounts for 1997 have been reclassified to conform to 1998
classifications.
NOTE 2 - COMPREHENSIVE INCOME
On January 1, 1998, the Company adopted the Statement of Financial Standard
No. 130, "Reporting Comprehensive Income." In adopting Statement No. 130, the
Company is required to present comprehensive income and its components in a
full set of general purpose financial statements. The Company has elected to
report the effects of Statement No. 130 as part of the Statement of Changes in
Stockholders' Equity.
7
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS
Financial Condition
Total assets at June 30, 1998 increased $9,229,000 or 6.0% to $162,650,000
from the $153,421,000 reported at December 31, 1997. Management believes that
this is the result of heightened marketing efforts combined with more complete
utilization of the branches which were opened in 1995 and 1996.
Cash and cash equivalents increased $4,774,000 or 106.6% mainly due to
increased amounts in federal funds sold and interest-bearing deposits in other
banks. Management has chosen to invest cash receipts in short-term investments
such as these. In addition to these liquid investments, in light of the
flattened yield curve, management has used a greater number of investments in
corporate commercial paper. This type of investment offers a spread to
interest income earned on federal funds sold while maintaining liquidity due
to the shorter term on commercial paper (less than or equal to 270 days). Due to
these short term investments , the available for sale category of investments
shows significant turnover.
The loan portfolio increased $3,588,000 or 3.3% from December 31, 1997 to June
30, 1998. Sales of residential mortgages of $2,723,000 in the first quarter
were replaced with new residential mortgages during the second quarter,
therefore showing no change in this category year to date. A variety of
different type loans account for the remaining increase with the largest being
a growth in commercial real estate loans of $3,159,000. Loan activity in this
category was diversified among various types of businesses including
children's camps, manufacturing concerns, retail stores and nonprofit
agencies.
Total deposits increased $7,841,000 or 5.8% due in part to the increased
effects of additional branches along with normal cyclical commercial customer
balance growth. This is shown by an increase in noninterest-bearing deposits
of $830,000 or 6.4%. Interest-bearing accounts increased $7,011,000 or 5.7%
with the greatest change being an increase of $3,741,000 in statement savings
accounts. Time deposits of less than $100,000 showed growth of $2,047,000
during the same period. Management believes this increase is due to the
competitive rates offered on these products.
The Company has been attracting liabilities in the form of securities sold
under agreements to repurchase in conjunction with a sweep arrangement for
commercial customers. This product offering has increased balances of this
type $1,513,000 since December 31, 1997.
Equity capital increased $791,000 or 5.5% since December 31, 1997, primarily
the result of net earnings for the period of $985,000. Dividends of $328,000
were declared during the first half of 1998 with the reinvestment of dividends
through the plan contributing back $126,000.
Management monitors risk-based capital and leverage capital ratios in order to
assess compliance with regulatory guidelines. At June 30, 1998, the bank had
total risk-based capital of 12.8%, exceeding the 8.0% minimum risk-based
capital requirement. Core equity capital, which must be at least fifty
percent of the total risk-based capital, was 11.6% of this requirement at June
30, 1998. Additionally, the Company must maintain a minimum leverage capital
ratio of 3%. As of June 30, 1997 the Company's leverage capital ratio was
9.4%.
8
<PAGE>
Results of Operation
Comparison of the Six Months Ended June 30, 1998 and 1997.
The Company earned $985,000 for the six months ended June 30, 1998, an
increase of $188,000 or 23.6% from the $797,000 reported for the first half of
1997.
Interest and fees earned on loans increased $339,000 or 7.4% due to an
increase of $7,153,000 in balances of the average loan portfolio. The average
rate earned on loans increased slightly from 8.65% in 1997 to 8.72% in 1998.
Interest earned on interest-bearing balances and federal funds sold increased
significantly from $59,000 in 1997 to $393,000 in 1998 due to larger balances
in these types of accounts coupled with an average rate increase of 0.8% from
1997 to 1998.
The net interest margin increased $215,000 or 7.0% from 1997 to 1998 as a
result of the net effect of volume increases of $18,015,000 in average earning
assets and $15,944,000 in average costing liabilities which were offset by
rate decreases in earning assets of .13% and increases of .15% in costing
liabilities.
The provision for loan losses decreased $91,000 or 33.3% from 1997 to 1998.
Our internal evaluation of the allowance for loan loss indicates that the
current allowance is adequate and that the provision expense is sufficient.
Management had previously taken an aggressive stand in charging off any loans
that qualified under more stringent charge-off guidelines and feels that this
policy has strengthened the quality of the remaining loan portfolio. The
level of the allowance for loan loss as a percentage of total loans at June
30, 1998 was 1.42% compared with 1.25% at June 30, 1997.
Gains (losses) on loans held for sale increased $65,000 in 1998 from 1997.
The Company sold loans with balances of $5,660,000 in 1998 as compared to
$2,015,000 in 1997. The larger volume of loans coupled with quicker
turnaround time to sell, which has the affect of limiting risk of market loss
on the sales, is the main reason for this increase.
Other operating income increased $43,000 or 21.3% from 1997 to 1998. A
variety of different categories accounted for this, including $13,000 increase
in participation service fees (servicing of loans which have been sold in the
secondary market), $9,000 fees on ATM usage fees which were not charged in
1997, $9,000 in additional fees received by participation in the MasterCard
network and $13,000 greater fees earned on mutual fund sales.
Other operating expense increased $89,000 or 14.1% from 1997 to 1998. Legal
fees increased $14,000 due to consulting services in connection with loan
collection and product review. ATM fees paid for inclusion in the network
increased $10,000 from 1997 to 1998 with the addition of three ATM machines in
the past year. Postage expenses increased $10,000 with a greater number of
statements mailed due to the greater number of accounts. Travel expenses
connected with education for new software systems increased with a one-time
addition of $12,000 caused by the need for extensive off-site training on the
new mortgage platform system. Changes in various other categories account for
the remaining increase, with no one category being a significant dollar
amount.
9
<PAGE>
Comparison of Three Months Ended June 30, 1998 and 1997
Total interest income increased $289,000 or 10.5% from 1997 to 1998. This
increase is due to increased average volume of $17,297,000 which is offset by
decreased average interest rates received of 0.16% for 1998 as compared to
1997. At the same time interest expense increased $202,694 or 17.5% with the
average deposits in 1998 increasing $17,110,000 or 13.6% from the 1997 average
balances. In addition to larger balances, the average interest rates paid in
1998 were 3.8% as compared to 3.7% in 1997. With increased competition for
deposit dollars, management has been aggressive in pricing deposits and in
addition has introduced securities sold under agreement to repurchase for
commercial customers which was not offered in the second quarter of 1997.
The provision for loan loss decreased $45,000 or 33.0% in 1998 as compared to
1997. As mentioned above, management's evaluation of the allowance for loan
loss shows that this decrease is warranted.
Other operating income increased $28,000 or 28.4% from 1997 to 1998. As
mentioned in the six month discussion, this increase is due to participation
service fee increases of $6,000, MasterCard interchange fees of $6,000 (which
the Company did not offer in 1997), additional fees generated by initiating an
ATM fee for noncustomers of $5,000 and increased income on sales of mutual
fund products of $15,000. Other income items showed smaller increases.
These increases were offset by decreases of $5,000 in insurance sales
commissions and $4,000 in credit card fees from commercial customers.
Other operating expense increased $54,000 or 16.0% with increased expense
attributable to the same line items as discussed in the six month comparison.
Legal expense increased $12,000 due to more aggressive loan collection efforts
and additional inquiry into product review.
ATM network fees increased $6,000 or 38.5% due to the larger number of ATM
machines operated in 1998. Outside professional fees showed a decrease of
$7,000 from 1997 to 1998 with less emphasis on consultants for team building
and marketing. Travel expenses increased $7,000 in 1998 due to off-site
training on the new loan platform system. Various other categories showed
increases in costs from 1997 to 1998 with no one item being of a significant
dollar amount.
10
<PAGE>
Liquidity and Cash Flows
To ensure that the Company can satisfy customer credit needs for current and
future commitments and deposit withdrawal requirements, the Bank manages the
liquidity position by ensuring that there are adequate short-term funding
sources available for those needs. Liquid assets consists of cash and due
from banks, federal funds sold, interest-bearing deposits with other banks and
investment securities maturing in one year or less. The following table shows
these liquidity sources, minus short-term borrowings, as of June 30, 1998
compared to December 31, 1997:
June 30, December 31,
-------- ------------
(dollars in thousands)
Cash and due from banks $ 1,663 $ 1,359
Interest-bearing deposits with
other banks 4,762 3,122
Federal funds sold 2,830 0
Mortgage loans held for sale 924 157
Investment securities maturing in
One year or less 25,914 27,212
-------- --------
36,093 31,850
Less short-term borrowings 3,118 2,390
-------- --------
Net liquidity position $ 32,975 $ 29,460
======== ========
As a percent of total assets 20.3% 19.2%
Management monitors liquidity on a consistent basis and feels that liquidity
levels are adequate. In addition to these liquidity sources, the Bank has
available also a credit line with the Federal Home Loan Bank in the amount of
$3.5 million.
Management is not aware of any known trends, events or uncertainties that will
have or is reasonably likely to have a material effect on the Company's
liquidity, capital resources or operations nor is management aware of any
current recommendations by regulatory authorities, which if implemented, would
have such an effect.
11
<PAGE>
Risk Elements
The table below presents information concerning nonperforming assets including
nonaccrual loans, renegotiated loans, loans 90 days or more past due,
nonaccrual securities, other real estate loans and repossessed assets at June
30, 1998 and December 31, 1997. A loan is classified as nonaccrual when, in
the opinion of management, there are doubts about collectibility of interest
and principal. At the time the accrual of interest is discontinued, future
income is recognized only when cash is received. Renegotiated loans are those
loans which terms have been renegotiated to provide a reduction or deferral of
principal or interest as a result of the deterioration of the borrower.
June 30, December 31,
1998 1997
------ ------
(dollars in thousands)
Loans on nonaccrual basis $ 976 $ 819
Loans past due 90 days or more 898 755
Renegotiated loans 1,200 1,219
------ ------
Total nonperforming loans 3,074 2,793
Other real estate 782 626
Repossessed assets 22 -
Nonaccrual securities - -
------ ------
Total nonperforming assets $3,878 $3,419
====== ======
Nonperforming loans as a percent
of total loans 2.7% 2.6%
====== ======
Nonperforming assets as a percent
of total assets 2.4% 2.2%
====== ======
Allowance for loan loss as a percent
of loans 1.42% 1.39%
====== ======
Management believes the level of the allowance for loan losses at June 30,
1998 is sufficient. The relationship between the allowance for loan losses
and outstanding loans is a function of the credit quality and known risk
attributed to the loan portfolio. The on-going loan review program and credit
approval process is used to determine the adequacy of the allowance for loan
losses. Included in total loans are loans of $960,000 which management has
classified as impaired under the terms of Financial Accounting Standards Board
Statement No. 114, "Accounting by Creditors for Impairment of a Loan Income
Recognition and Disclosure." The related allowance for loan losses on these
loans amounted to $181,000. There were no impaired loans without a related
allowance for loan losses.
Management does not believe that loans classified as loss, doubtful
substandard or special mention for internal or regulatory purposes (ii)
represent or result from trends or uncertainties which management reasonably
expects will materially impact future operating results, liquidity, or capital
resources, or (ii) represent material loans about which management is aware of
any information which causes management to have serious doubts as to the
ability of such borrowers to comply with the loan repayment terms.
12
<PAGE>
PART II - OTHER INFORMATION
Item 1 - Legal Proceedings
NONE
Item 2 - Changes in the rights of the Company's security holders
NONE
Item 3 - Defaults by the Company on its senior securities
NONE
Item 4 - Submissions of matters to a vote of security holders
The following represents the results of matters submitted to a
vote of the shareholders at the annual meeting held on April 23,
1998:
Election of Directors:
The following directors were elected with terms to expire April,
2000:
For Withhold Authority
--- ------------------
William E. Schwarz 526,679.6766 5,679.9717
Henry M.Skier 525,968.3391 6,391.3092
Gerald J. Weniger 526,679.6766 5,679.9717
S.R. Snodgrass, A.C. was selected as the Company's independent
auditors for the year ending December 31, 1998 by the following
vote:
For: 532,359.6483
Against: 0.0000
Item 5- Other information
NONE
Item 6- Exhibits and Reports on Form 8-K
NONE
13
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused the report to be signed on its behalf by the
undersigned, thereunto duly authorized.
DIMECO, INC.
Date: August 6, 1998 By:\s\ Joseph J. Murray
---------------------------
Joseph J. Murray
President and Chief Executive Officer
Date: August 6, 1998 By:\s\ Maureen H. Beilman
---------------------------
Maureen H. Beilman
Controller/Treasurer
14
<TABLE> <S> <C>
<ARTICLE> 9
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> JUN-30-1998
<CASH> 1,662,715
<INT-BEARING-DEPOSITS> 4,762,027
<FED-FUNDS-SOLD> 2,830,000
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 30,748,567
<INVESTMENTS-CARRYING> 4,475,698
<INVESTMENTS-MARKET> 4,529,498
<LOANS> 112,402,187
<ALLOWANCE> 1,597,119
<TOTAL-ASSETS> 162,650,161
<DEPOSITS> 142,942,260
<SHORT-TERM> 0
<LIABILITIES-OTHER> 4,396,074
<LONG-TERM> 0
0
0
<COMMON> 364,420
<OTHER-SE> 14,947,407
<TOTAL-LIABILITIES-AND-EQUITY> 162,650,161
<INTEREST-LOAN> 4,928,754
<INTEREST-INVEST> 668,205
<INTEREST-OTHER> 392,927
<INTEREST-TOTAL> 5,989,886
<INTEREST-DEPOSIT> 2,657,603
<INTEREST-EXPENSE> 2,686,320
<INTEREST-INCOME-NET> 3,303,566
<LOAN-LOSSES> 181,000
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 2,112,175
<INCOME-PRETAX> 1,441,770
<INCOME-PRE-EXTRAORDINARY> 1,441,770
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 985,235
<EPS-PRIMARY> 1.35
<EPS-DILUTED> 1.35
<YIELD-ACTUAL> 7.75
<LOANS-NON> 975,519
<LOANS-PAST> 897,718
<LOANS-TROUBLED> 1,200,263
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 1,511,123
<CHARGE-OFFS> 108,851
<RECOVERIES> 13,847
<ALLOWANCE-CLOSE> 1,597,119
<ALLOWANCE-DOMESTIC> 1,597,119
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
