<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 June 30, 1997
( ) TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT
For the transition period from ____________ to ____________
Commission file Number 0-22062
UWHARRIE CAPITAL CORP
(Exact name of small business issuer as specified in its charter)
NORTH CAROLINA 56-1814206
(State of incorporation) (I.R.S Employer Identification No.)
167 North Second Street
Albemarle, North Carolina 28001
(Address of principal executive offices)
Issuer's telephone number, including area code: (704) 983-6181
Check whether the issuer (1) has filed all reports required to be filed by
Section 13 of 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
State the number of shares outstanding of each of the issuer's classes of common
stock, as of the latest practicable date:
Title of Each Class Outstanding at July 31, 1997
- ------------------- ----------------------------
Common stock, par value $1.25 per share 2,172,579 shares
Transitional Small Business Disclosure Format (check one):
Yes No X
<PAGE>
UWHARRIE CAPITAL CORP AND SUBSIDIARY
FORM 10-QSB
TABLE OF CONTENTS
<TABLE>
<CAPTION>
PAGE
<S> <C> <C>
PART 1 FINANCIAL INFORMATION
Item 1 Financial Statements
Consolidated Balance Sheets, June 30, 1997 and 1996 (Unaudited) 3
Consolidated Statements of Income for the Three Months and the Six
Months Ended June 30, 1997 and 1996 (Unaudited) 4
Consolidated Statements of Changes in Shareholders' Equity for the
Six Months Ended June 30, 1997 and 1996 (Unaudited) 5
Consolidated Statements of Cash Flows for the Six Months
Ended June 30, 1997 and 1996 (Unaudited) 6
Notes to Consolidated Financial Statements (Unaudited) 7
Item 2 Management's Discussion and Analysis of Financial Condition
and Results of Operations 8
PART II OTHER INFORMATION
Item 4 Submission of Matters to Vote of Security Holders 11
Item 6 Exhibits and Reports on Form 8-K 11
SIGNATURES 12
EXHIBIT 27 Financial Data Schedule for the Six Months
Ended June 30, 1997 13
</TABLE>
<PAGE>
PART I
FINANCIAL INFORMATION
<TABLE>
<CAPTION>
ITEM 1 FINANCIAL STATEMENTS
UWHARRIE CAPITAL CORP AND SUBSIDIARY
Consolidated Balance Sheets (Unaudited)
(In Thousands) June 30,
1997 1996
-------------------- --------------------
<S> <C> <C>
ASSETS
Cash and cash equivalents $ 4,675 $ 4,622
Securities available for sale:
U.S. Treasury 4,993 4,937
U.S. Government agencies and corporations 13,594 10,391
State and political subdivisions 5,738 5,747
Other securities 1,579 1,346
-------------------- --------------------
Total securities 25,904 22,421
-------------------- --------------------
Loans 108,731 96,402
Less: Allowance for loan losses 1,100 1,036
-------------------- --------------------
Loans, net 107,631 95,366
--------------------
--------------------
Premises and equipment, net 2,357 2,122
Interest receivable 910 853
Other assets 1,142 1,260
-------------------- --------------------
Total assets $ 142,619 $ 126,644
==================== ====================
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits:
Demand deposits $ 14,162 $ 12,354
Money market and NOW accounts 29,672 21,977
Savings deposits 29,165 27,093
Time deposits $100,000 and over 8,038 6,123
Other time deposits 32,442 33,012
-------------------- --------------------
Total deposits 113,479 100,559
-------------------- --------------------
Federal funds purchased 935 -
Securities sold under repurchase agreements 3,882 6,422
Other short-term borrowed funds 4,239 1,600
Long-term debt 7,700 6,475
Interest payable 190 182
Other liabilities 322 342
-------------------- --------------------
Total liabilities 130,747 115,580
-------------------- --------------------
Shareholders' equity:
Common stock, par value $1.25 per share;
authorized 6,000,000; issued and outstanding:
2,172,506 shares at June 30, 1997
2,121,081 shares at June 30, 1996 2,716 2,651
Surplus 4,572 4,330
Undivided profits 4,364 3,890
Unrealized gain (loss) on securities available for sale, net
of related tax effect 220 193
-------------------- --------------------
Total shareholders' equity 11,872 11,064
-------------------- --------------------
Total liabilities and shareholders' equity $ 142,619 $ 126,644
==================== ====================
</TABLE>
See Notes to Consolidated Financial Statements.
3
<PAGE>
UWHARRIE CAPITAL CORP AND SUBSIDIARY
Consolidated Statements of Income (Unaudited)
<TABLE>
<CAPTION>
(In Thousands) Three Months Ended Six Months Ended
June 30, June 30,
1997 1996 1997 1996
-------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
INTEREST INCOME:
Interest on loans $ 2,334 $ 2,090 $ 4,537 $ 4,109
Interest on securities:
U.S. Treasury 74 98 139 200
U.S. Government agencies and corporations 247 182 478 350
State and political subdivisions 85 87 171 177
Other 16 12 36 23
Other interest income 9 6 16 32
-------------- ------------- ------------- -------------
Total interest income 2,765 2,475 5,377 4,891
INTEREST EXPENSE:
Interest on deposits and borrowed funds 1,218 1,116 2,384 2,224
-------------- ------------- ------------- -------------
NET INTEREST INCOME 1,547 1,359 2,993 2,667
Provision for loan losses 47 52 85 87
-------------- ------------- ------------- -------------
NET INTEREST INCOME AFTER PROVISION
FOR LOAN LOSSES 1,500 1,307 2,908 2,580
-------------- ------------- ------------- -------------
NONINTEREST INCOME:
Service charges on deposit accounts 233 223 449 447
Other service fees and commissions 122 105 249 204
Gain (loss) on sale of securities - (1) - 18
Other income 17 10 29 21
-------------- ------------- ------------- -------------
Total noninterest income 372 337 727 690
-------------- ------------- ------------- -------------
NONINTEREST EXPENSE:
Salaries, wages and employee benefits 708 628 1,370 1,219
Occupancy expenses 62 53 117 107
Equipment expense 100 97 200 191
Data processing 121 124 243 251
Other expenses 412 385 796 737
-------------- ------------- ------------- -------------
Total noninterest expense 1,403 1,287 2,726 2,505
-------------- ------------- ------------- -------------
INCOME BEFORE INCOME TAXES 469 357 909 765
Provision for Income Taxes 151 119 283 243
-------------- ------------- ------------- -------------
NET INCOME $ 318 $ 238 $ 626 $ 522
============== ============= ============= =============
Earnings Per Share $ .15 $ .11 $ .29 $ .24
Shares used in computing net income per share 2,172,506 2,121,081 2,172,506 2,121,081
</TABLE>
See Notes to Consolidated Financial Statements.
4
<PAGE>
UWHARRIE CAPITAL CORP AND SUBSIDIARY
Consolidated Statements of Changes in Shareholders' Equity
For The Six Months Ended June 30, 1997 and 1996 (Unaudited)
<TABLE>
<CAPTION>
Net
Unrealized Gain
(In Thousands) Common Undivided (Loss) on Securities
Stock Surplus Profits Available for Sale
--------------- --------------- ---------------- -------------------
<S> <C> <C> <C> <C>
Balance, December 31, 1995 $ 2,654 $ 4,376 $ 3,368 $ 513
Repurchase of common stock (20) (77) - -
Stock options exercised 17 31 -
Net income - - 522 -
Net decrease in market value of
securities available for sale - - - (320)
--------------- --------------- ----------------- ---------------
Balance, June 30, 1996 $ 2,651 $ 4,330 $ 3,890 $ 193
=============== =============== ================= ===============
- ----------------------------------------------------------------------------------------------------------------------------
Balance, December 31, 1996 $ 2,719 $ 4,594 $ 3,738 $ 253
Repurchase of common stock (6) (25) - -
Stock options exercised 3 3 - -
Net income - - 626 -
Net decrease in market value of
securities available for sale - - - (33)
--------------- --------------- ----------------- ---------------
Balance, June 30, 1997 $ 2,716 $ 4,572 $ 4,364 $ 220
=============== =============== ================= ===============
</TABLE>
See Notes to Consolidated Financial Statements.
5
<PAGE>
UWHARRIE CAPITAL CORP AND SUBSIDIARY
Consolidated Statements of Cash Flows
For the Six Months Ended June 30, 1997 and 1996
<TABLE>
<CAPTION>
(In Thousands)
1997 1996
------------------- ------------------
CASH FLOWS FROM OPERATING ACTIVITIES:
<S> <C> <C>
Net income $ 626 $ 522
Adjustments to reconcile net income to net cash provided by
operating activities
Depreciation 126 116
Amortization (accretion) of security premiums and discounts, net (12) (18)
Provision for loan losses 85 87
Deferred income taxes (7) -
Gain on sale of securities - (18)
Changes in assets and liabilities:
Interest receivable (52) 13
Other assets (78) (30)
Interest payable 14 17
Other liabilities (46) 21
------------------
-------------------
Net cash provided by operating activities 656 710
------------------- ------------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from sales and maturities of securities available for sale 3,588 4,701
Purchase of securities available for sale (4,315) (4,499)
Additions to foreclosed properties (42) (51)
Net increase in loans (7,913) (5,480)
Capital expenditures (365) (141)
------------------- ------------------
Net cash used in investing activities (9,047) (5,470)
------------------- ------------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Net increase in demand deposits, NOW and savings accounts 8,328 3,474
Net increase in time deposits 553 1,291
Net increase (decrease) in securities sold under repurchase agreements (4,274) 1,960
Net increase (decrease) in federal funds 935 (2,850)
Net increase in other borrowings/notes payable 2,666 2,102
Proceeds from issuance of common stock 6 48
Repurchases of common stock (31) (97)
------------------- ------------------
Net cash provided by financing activities 8,183 5,928
------------------- ------------------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (208) 1,168
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 4,883 3,454
------------------- ------------------
CASH AND CASH EQUIVALENTS, END OF PERIOD $ 4,675 $ 4,622
=================== ==================
Supplemental disclosures of cash flow information:
Interest paid $ 2,370 $ 2,206
Income taxes paid $ 307 $ 274
Transfers from loans to OREO $ 42 $ 51
</TABLE>
See Notes to Consolidated Financial Statements.
6
<PAGE>
UWHARRIE CAPITAL CORP AND SUBSIDIARY
Notes to Consolidated Financial Statements (Unaudited)
NOTE 1 - ACCOUNTING POLICIES
The financial statements and accompanying notes are presented on a consolidated
basis including Uwharrie Capital Corp (the "Company"), it's Subsidiary, Bank of
Stanly ("the Bank") and the Bank's subsidiaries. Bank of Stanly consolidates the
Strategic Alliance Corporation and BOS Agency, Inc. each of which are
wholly-owned by the Bank.
The information contained in the consolidated financial statements is unaudited.
In the opinion of management, the consolidated financial statements have been
prepared in conformity with generally accepted accounting principles and all
material adjustments necessary for a fair presentation of results of interim
periods have been made. The results of operations for the interim periods are
not necessarily indicative of the results which may be expected for an entire
year. Management is not aware of economic events, outside influences or changes
in concentrations of business that would require additional clarification or
disclosure in the consolidated financial statements. Certain prior period
amounts have been reclassified to conform to current period classifications.
NOTE 2 - LOANS
Loans outstanding at period end:
<TABLE>
<CAPTION>
June 30,
(In Thousands) 1997 1996
---------------- ---------------
<S> <C> <C>
Real estate loans $ 82,414 $ 72,734
Commercial and industrial 15,699 13,604
Loans to individuals for household, family and other
consumer expenditures 10,564 10,024
All other loans 54 40
---------------- ---------------
Total $ 108,731 $ 96,402
================ ===============
</TABLE>
Summary of transactions in the allowance for loan losses for the six-month
periods ended:
<TABLE>
<CAPTION>
June 30,
(In Thousands) 1997 1996
-------------- --------------
<S> <C> <C>
Beginning balance $ 1,050 $ 975
Charge-offs:
Commercial loans 12 -
Consumer loans 27 33
Real estate loans 5 -
-------------- --------------
Gross charge-offs 44 33
-------------- --------------
Recoveries:
Commercial loans - -
Consumer loans 9 7
Real estate loans - -
-------------- --------------
Gross recoveries 9 7
-------------- --------------
Net charge-offs 35 26
Provision for loan losses 85 87
-------------- --------------
Ending balance $ 1,100 $ 1,036
============== ==============
Percentage of gross loans 1.01% 1.07%
Ratio of net charge-offs to average loans during the period .03% .03%
</TABLE>
7
<PAGE>
NOTE 3 - STANDBY LETTERS OF CREDIT
At June 30, 1997 and 1996 the Company had outstanding letters of credit totaling
$263 thousand and $439 thousand, respectively.
ITEM 2: MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
OVERVIEW
Uwharrie Capital Corp, (the Company) was incorporated as Stanly Capital Corp
under the laws of the State of North Carolina as a one bank holding company for
Bank of Stanly (the Bank) in July 1993. The Company changed its name to Uwharrie
Capital Corp in April 1997 to broaden its community perspective and expand its
vision to look beyond its current service area in Stanly County to the Uwharrie
Lakes region, consisting of a contiguous seven county area in our state.
The Bank was incorporated in 1983 and since commencement of its operations in
January 1984, has engaged in the retail and commercial banking business through
its five offices located in Stanly County, North Carolina. Bank of Stanly
competes with five other commercial banks, a savings bank and a credit union in
its service area, primarily for lending activities and deposit customers. The
Bank enjoys a good reputation as a community focused financial institution, and
has been successful in achieving substantial growth in a market that has not
displayed a significant amount of growth potential.
Results of operations and the Company's financial condition are presented in the
following narrative and incorporated tables. References to changes in assets and
liabilities represent end of period balances unless otherwise noted.
EARNINGS
Uwharrie Capital Corp reported a quarter of continued growth and good operating
results. Net income of $318 thousand for the second quarter of 1997, represents
earnings per share of $.15 and reflects a 33.6% increase over earnings for the
same period of 1996, which totaled $238 thousand or $.11 per share. Key factors
affecting the improved earnings experienced this period were increases in net
interest income due primarily to growth in the loan portfolio and a relatively
stable net interest margin.
NET INTEREST INCOME
The largest contributor to earnings, net interest income, increased by $188
thousand or 13.8% for the three months ended June 30, 1997 compared to the same
period a year earlier, due primarily to the growth in the loan portfolio. The
major components of net interest income are income earned on investments and
loans less interest expense on deposits and borrowings.
Income on loans of $2.3 million for the three month period, reflected an
improvement of 11.7% over the earnings of $2.1 million during the same period in
1996. Investment securities provided an additional $43 thousand in earnings in
1997 compared to 1996.
Interest expense on deposits, securities sold under repurchase agreements,
federal funds purchased and borrowed funds increased by $102 thousand or 9.1%
comparing these periods due to the higher levels of interest-bearing liabilities
needed to fund asset growth.
8
<PAGE>
The following chart reflects average interest-earning assets and
interest-bearing liabilities, associated income or expense, related rates and
the net interest spread for the six month periods ended June 30, 1997 and 1996.
<TABLE>
<CAPTION>
Rate/Yield Spread Table on Tax Equivalent Basis *
Average Level Income/Expense Rate/Yield
($ in thousands) 1997 1996 1997 1996 1997 1996
----------- ------------ ----------- ----------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
Interest-earning assets:
Loans $ 105,082 $ 93,426 $ 4,537 $ 4,109 8.71% 8.84%
Securities * 25,992 24,294 916 845 7.11% 6.99%
Other 544 1,162 16 32 5.93% 5.54%
----------- ------------ ----------- ----------- ---------- ----------
Total interest-earning assets 131,618 118,882 5,469 4,986 8.38% 8.43%
----------- ------------ ----------- ----------- ---------- ----------
Interest-bearing liabilities:
Interest-bearing deposits 96,917 88,772 1,925 1,834 4.01% 4.15%
Short-term borrowings 9,288 7,077 226 164 4.91% 4.66%
Long-term borrowings 7,457 7,053 233 226 6.30% 6.44%
----------- ------------ ----------- ----------- ---------- ----------
Total interest-bearing
liabilities 113,662 102,902 2,384 2,224 4.23% 4.35%
----------- ------------ ----------- ----------- ---------- ----------
Net interest spread $ 17,956 $ 15,980 $ 3,085 $ 2,762 4.15% 4.08%
=========== ============ =========== =========== ========== ==========
</TABLE>
* An effective tax rate of 35% for 1997 and 1996 was used to adjust to a fully
tax-equivalent basis.
NONPERFORMING ASSETS
Nonperforming assets were $346 thousand at June 30, 1997, reflecting a decrease
of 15.8% compared to 1996. Detail of nonperforming assets is presented below:
<TABLE>
<CAPTION>
(In Thousands) June 30,
1997 1996
-------------------- --------------------
<S> <C> <C>
Nonaccrual loans:
Commercial $ 9 $ -
Real estate 203 269
Consumer installment 7 6
-------------------- --------------------
Total nonaccrual loans 219 275
Other real estate owned, net 127 136
-------------------- --------------------
Total nonperforming assets $ 346 $ 411
==================== ====================
Nonperforming assets as a percentage
Total assets .24% .32%
Total loans .32% .43%
</TABLE>
9
<PAGE>
PROVISION AND ALLOWANCE FOR LOAN LOSSES
The Company uses a rating method to determine an adequate level of provision for
loan losses which additionally provides early detection of problem loans. This
identification process begins with management's assessment of credit reviews,
payment histories of borrowers, loan-to-value ratio, and identified weakness in
the credit. The loans are graded and management establishes a standard
percentage to reserve for each rating. Included in the calculation are loans
previously identified by examiners as loss, doubtful or substandard.
Charge-offs, net of recoveries, for the first six months of 1997 totaled $35
thousand, reflecting a low ratio to average loans of .03%.
During the six month period ended June 30, 1997, a total of $85 thousand in loan
loss provision expense was recognized, compared to $87 thousand for this period
in 1996, attributable primarily to substantial loan growth in both years. The
transactions in the allowance for loan losses are summarized in Note 2 to the
consolidated financial statements.
NONINTEREST INCOME AND EXPENSE
Total noninterest income from service charges and other fees produced earnings
of $372 thousand for this quarter compared to $338 thousand in the prior period,
an increase of 10.1%.
For this same period, noninterest expenses increased by $116 thousand or 9.0%.
Salaries and benefits, the largest component of noninterest expense, increased
by $80 thousand due to the cost of additional personnel, normal salary
adjustments and associated higher benefit costs. All other expenses as a group
increased by $36 thousand when comparing results of the second quarter of 1997
to the same three month period of 1996.
INCOME TAX EXPENSE
Income taxes computed at the statutory rate are reduced primarily by the
eligible amount of interest earned on state and municipal securities. Income tax
expense calculated to date in 1997 totals $283 thousand, an effective tax rate
of 31.1% compared to $243 thousand in 1996, reflecting an effective rate of
31.8% of pretax income.
FINANCIAL CONDITION AND CAPITAL RATIOS
As of June 30, 1997 total assets were $142.6 million an improvement of 12.6%
over June 30, 1996. The Company has experienced outstanding growth of 12.8% in
loans which increased from $96.4 million at June 30, 1996 to $108.7 million on
June 30, 1997. Asset quality remains good as evidenced by current past due loan
percentages, loan loss experience and management rating of the loan portfolio.
The Company continues to maintain strong capital ratios that will support
additional asset growth. As of June 30, 1997, the leverage ratio calculated with
regulatory Tier I capital as a percentage of average for the quarter assets was
8.29%, which compares favorably to the regulatory capital requirement. Total
capital to risk weighted assets was 13.94% at June 30, 1997.
10
<PAGE>
LIQUIDITY
Liquidity, the ability to raise cash when needed without adversely impacting
profits, is managed primarily by the selection of asset mix and the maturity mix
of liabilities. Maturities and the marketability of securities and other funding
sources provide a source of liquidity to meet deposit withdrawals.
Other funding sources currently include $9 million in federal funds lines of
credit from correspondent banks and a $21 million line of credit from the
Federal Home Loan Bank, less current advance levels of borrowing from these
sources of $12.4 million. Growth in deposits is typically the primary source of
funding for loans, supported by long-term credit available from the Federal Home
Loan Bank.
INTEREST RATE SENSITIVITY
The major component of income for Uwharrie Capital Corp is net interest income,
the difference between yield earned on assets and interest paid on liabilities.
This differential (or margin) can vary over time as changes in interest rates
occur. The volatility of changes in this differential can be measured by the
timing (or repricing) difference between maturing assets and liabilities.
To identify interest rate sensitivity, a common measure is a gap analysis which
reflects the difference or gap between rate sensitive assets and liabilities
over various time periods. While Management reviews this information, it has
implemented the use of a simulation model which calculates expected net interest
income based on projected interest-earning assets, interest-bearing liabilities
and interest rates and provides a more relevant view of interest rate risk than
traditional gap tables. The simulation allows comparison of flat, rising and
falling rate scenarios to determine sensitivity of earnings to changes in
interest rates. Currently the model reflects that a fluctuation in rates of 100
and 200 basis points over a twelve-month period would have a potential negative
effect on net interest income in a rising rate environment of approximately
1.05%. The effect of a falling rate scenario was positive by approximately .35%.
The Asset Liability Management Committee monitors market changes in interest
rates and assists with pricing loans and deposit products consistent with
funding source needs and asset growth projections.
PART II
OTHER INFORMATION
ITEM 4 SUBMISSION OF MATTERS TO VOTE OF SECURITY HOLDERS
None
ITEM 6 EXHIBITS AND REPORTS ON FORM 8-K
a. Exhibits - Exhibit 27 - Financial Data Schedule
b. Reports on Form 8-K
Form 8-K was filed with the Securities and Exchange Commission
in April 1997 to report approval by the shareholders at its
annual meeting to change the name of the Company from Stanly
Capital Corp to Uwharrie Capital Corp effective April 22, 1997.
11
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned who is thereunto duly authorized.
UWHARRIE CAPITAL CORP
(Registrant)
Date July 31, 1997 By:
Roger L. Dick
President and Chief Executive Officer
Barbara S. Williams
Senior Vice President-Finance
12
<PAGE>
UWHARRIE CAPITAL CORP AND SUBSIDIARY
For the Six Months Ended June 30, 1997
<TABLE> <S> <C>
<ARTICLE> 9
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> JUN-30-1997
<CASH> 4,675
<INT-BEARING-DEPOSITS> 99,317
<FED-FUNDS-SOLD> 0
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 25,904
<INVESTMENTS-CARRYING> 0
<INVESTMENTS-MARKET> 0
<LOANS> 108,731
<ALLOWANCE> 1,100
<TOTAL-ASSETS> 142,619
<DEPOSITS> 113,479
<SHORT-TERM> 9,056
<LIABILITIES-OTHER> 322
<LONG-TERM> 7,700
0
0
<COMMON> 2,716
<OTHER-SE> 9,156
<TOTAL-LIABILITIES-AND-EQUITY> 142,619
<INTEREST-LOAN> 4,537
<INTEREST-INVEST> 824
<INTEREST-OTHER> 16
<INTEREST-TOTAL> 5,377
<INTEREST-DEPOSIT> 1,925
<INTEREST-EXPENSE> 2,384
<INTEREST-INCOME-NET> 2,993
<LOAN-LOSSES> 85
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 2,726
<INCOME-PRETAX> 909
<INCOME-PRE-EXTRAORDINARY> 626
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 626
<EPS-PRIMARY> 0.29
<EPS-DILUTED> 0.29
<YIELD-ACTUAL> 4.73
<LOANS-NON> 219
<LOANS-PAST> 92
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 1,050
<CHARGE-OFFS> 44
<RECOVERIES> 9
<ALLOWANCE-CLOSE> 1,100
<ALLOWANCE-DOMESTIC> 1,100
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
