<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC
______
FORM 10-Q
QUARTERLY REPORT UNDER SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For Quarter Ended December 31, 1998 Commission File Number 0-27098
FIRST SAVINGS BANCORP, INC.
(Exact name of registrant as specified in its charter)
North Carolina 56-1842701
-------------- ----------
(State of jurisdiction of (I.R.S. Employer
incorporation or organization) Identification number)
205 SE Broad Street, Southern Pines, North Carolina 28387
- --------------------------------------------------- -----
(Address of principal executive offices) (Zip Code)
(910) 692-6222
--------------
(Registrant's telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 12 or 15 (d) of the Securities Exchange Act of 1934
during the preceding 12 months (or for such shorter period that the registrant
was required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
Yes [X] No [ ]
As of January 31, 1999 there were 3,635,109 shares of the issuer's common stock
issued and outstanding.
<PAGE>
FIRST SAVINGS BANCORP, INC.
TABLE OF CONTENTS
PART I FINANCIAL INFORMATION Page Number
---------------------
Item 1. Financial Statements
Consolidated Statements of Financial Condition 3
Consolidated Statements of Income 4
Consolidated Statements of Cash Flow 5
Notes to Consolidate Financial Statements 6
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations 7-9
PART II OTHER INFORMATION
-----------------
Item 5. Other Information 9-10
SIGNATURES 11
<PAGE>
FIRST SAVINGS BANCORP, INC.
- ------------------------------------------------------------------------------
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (unaudited)
<TABLE>
<CAPTION>
December 31, June 30,
-----------------------
1998 1998
-----------------------
<S> <C> <C>
($ in thousands)
ASSETS
Cash and due from banks $ 5,201 $ 3,825
Interest earning deposits with banks 7,081 3,991
Investment securities available
for sale at fair value 47,672 72,732
Investment securities held to maturity
at amortized cost (fair values - $14,477
at December 31, 1998;
$9,821 at June 30, 1998) 13,748 9,737
Loans receivable (net of allowance for loan
losses of $596 at December 31,
and June 30, 1998) 208,294 208,094
Accrued interest receivable 1,509 1,749
Premises and equipment 2,159 1,936
Stock in the Federal Home Loan Bank of Atlanta,
at cost 1,930 1,930
Prepaid expenses and other assets 207 174
-------- --------
TOTAL $287,801 304,168
======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES:
Deposits 215,882 211,925
Borrowed funds 20,000
Accrued expenses and other liabilities 2,424 2,722
-------- --------
Total liabilities 218,306 234,647
-------- --------
SHAREHOLDERS' EQUITY:
Preferred stock, no par value, 5,000,000
shares, authorized, none issued and
outstanding
Common stock, no par value, 20,000,000 shares
authorized, 3,707,185 shares issued
and outstanding at December 31, 1998;
3,710,820 at June 30, 1998 34,675 35,536
Unearned compensation related to ESOP note
payable (87) (158)
Net unrealized gain on securities available
for sale 382 375
Retained earnings 34,525 33,768
-------- --------
Total shareholders' equity 69,495 69,521
-------- --------
TOTAL $287,801 $304,168
======== ========
</TABLE>
See notes to consolidated financial statements
<PAGE>
FIRST SAVINGS BANCORP, INC.
- ------------------------------------------------------------------------------
CONSOLIDATED STATEMENTS OF INCOME (unaudited)
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
December 31, December 31,
---------------------------------------------
($ in thousands except per share data) 1998 1997 1998 1997
---------------------------------------------
<S> <C> <C> <C> <C>
INTEREST AND DIVIDEND INCOME:
Interest on loans receivable $4,169 $4,058 $ 8,393 $ 8,005
Interest on mortgage-backed securities 215 177 388 307
Interest on investment securities 885 1,270 2,006 2,647
Dividends on investment securities 36 124 73 71
Other 102 35 127 232
------ ------ ------- -------
Total interest income 5,407 5,664 10,987 11,262
------ ------ ------- -------
INTEREST EXPENSE:
Interest on deposits 2,463 2,500 4,983 4,987
Interest on borrowings 67 317 257 622
------ ------ ------- -------
Total interest expense 2,530 2,817 5,240 5,609
------ ------ ------- -------
Net interest income 2,877 2,847 5,747 5,653
Provision for loan losses
Net interest income after provision
for loan losses 2,877 2,847 5,747 5,653
------ ------ ------- -------
NONINTEREST INCOME:
Fees and service charges 198 128 354 245
Income from real estate operations 2 2 4 4
Rent on safe deposit boxes 7 7 9 9
Other, net 2 8 3 9
------ ------ ------- -------
Total noninterest income, net 209 145 370 267
------ ------ ------- -------
GENERAL AND ADMINISTRATIVE EXPENSES:
Compensation and fringe benefits 542 512 1,105 1,033
Occupancy and building 54 56 115 106
Federal insurance premiums 31 33 64 66
Computer services 100 66 189 171
Other 283 268 522 467
---------- ---------- ---------- ----------
Total general and administrative
expenses 1,010 935 1,995 1,843
---------- ---------- ---------- ----------
INCOME BEFORE INCOME TAXES 2,076 2,057 4,122 4,077
INCOME TAX EXPENSE 763 759 1,516 1,503
---------- ---------- ---------- ----------
NET INCOME $ 1,313 $ 1,298 $ 2,606 $ 2,574
========== ========== ========== ==========
NET INCOME PER COMMON SHARE:
Basic: $ 0.35 $ 0.35 $ 0.70 $ 0.70
========== ========== ========== ==========
Diluted: $ 0.33 $ 0.32 $ 0.65 $ 0.64
========== ========== ========== ==========
WEIGHTED AVERAGE SHARES OUTSTANDING:
Basic: 3,711,147 3,674,737 3,717,555 3,666,126
========== ========== ========== ==========
Diluted: 3,998,413 4,016,668 4,013,285 4,004,594
========== ========== ========== ==========
</TABLE>
See notes to consolidated financial statements.
4
<PAGE>
FIRST SAVINGS BANCORP, INC.
- ------------------------------------------------------------------------------
CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)
<TABLE>
<CAPTION>
Six Months Ended
December 31,
-----------------------
($ in thousands) 1998 1997
-----------------------
<S> <C> <C>
OPERATING ACTIVITIES:
Net income $ 2,606 $ 2,574
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation of premises and equipment 51 49
Issuance of ESOP shares 162 148
Net amortization on investments 102 9
Loan origination fees and costs deferred,
net of current amortization 6 (26)
Changes in:
Other assets 207 (53)
Other liabilities (292) (400)
-------- -------
Net cash provided by operating activities 2,842 2,301
-------- -------
INVESTING ACTIVITIES:
Net (increase) decrease in interest-earning deposits
with banks (3,090) 3,964
Proceeds from maturities of investments 37,000 7,500
Purchases of investment securities (17,000) (9,950)
Principal repayments on mortgage-backed securities 958 646
Loan originations net of repayments and net fees (206) (8,148)
Proceeds from sale of property and equipment 9
Gain on sale of property and equipment (7)
Purchases of premises and equipment (274) (49)
-------- -------
Net cash provided by (used in) investing activities 17,388 (6,035)
-------- -------
FINANCING ACTIVITIES:
Net increase in deposits 3,957 5,591
Net decrease in borrowed funds (20,000)
Net proceeds from exercise of stock options 178 92
Repurchases of common stock (1,130)
Cash dividends paid (1,859) (1,552)
-------- -------
Net cash provided by (used in) financing activities (18,854) 4,131
-------- -------
INCREASE IN CASH AND DUE FROM BANKS 1,376 397
CASH AND DUE FROM BANKS, BEGINNING OF PERIOD 3,825 2,801
-------- -------
CASH AND DUE FROM BANKS, END OF PERIOD $ 5,201 $ 3,198
======== =======
SUPPLEMENTAL DISCLOSURES:
- -------------------------
Cash paid for:
Interest on deposits $ 4,979 $ 4,959
Interest on borrowed funds 312,209 622
Income taxes 1,536 1,560
</TABLE>
See notes to consolidated financial statements.
5
<PAGE>
FIRST SAVINGS BANCORP, INC.
- ------------------------------------------------------------------------------
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. Basis of Presentation: The accompanying consolidated financial statements
----------------------
include the accounts of First Savings Bancorp, Inc. and its wholly-owned
subsidiary, First Savings Bank of Moore County, Inc., SSB (the "Bank"),
together referred to as "First Savings". All significant intercompany
balances and transactions have been eliminated in consolidation.
2. Accounting Policies: The significant accounting policies followed by First
--------------------
Savings for interim financial reporting are consistent with the accounting
policies followed for annual financial reporting. The accompanying
unaudited consolidated financial statements have been prepared in accordance
with generally accepted accounting principles for interim financial
information and with the instructions to Form 10-Q and Article 10 or
Regulation S-X. 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 (none
of which were other than normal accruals) necessary for a fair presentation
of the financial position and results of operations for the periods
presented have been included. The results of operations for the three and
six month periods ended December 31, 1998 are not necessarily indicative of
the results of operations that may be expected for the year ending June 30,
1999. For further information, refer to the consolidated financial
statements and footnotes thereto included in the annual report on Form 10-K
for the year ended June 30, 1998.
3. Earnings Per Common Share: Effective July 1,1997, First Savings Bank has
--------------------------
implemented Statement of Financial Accounting Standards ("SFAS") No. 128,
"Earnings per Share". This Statement simplifies the standards for computing
earnings per share previously found in Accounting Principles Board ("APB")
Opinion No. 15, Earnings per Share ("EPS"), and makes them comparable to
international EPS standards. It replaces the presentation of primary EPS
with the presentation of basic EPS. It also requires dual presentation of
basic and diluted EPS on the face of the income statement for all entities
with complex capital structures and requires a reconciliation of the
numerator and the denominator of the basic EPS computation to the numerator
and denominator of the diluted EPS computation. Basic EPS excludes dilution
and is computed by dividing income available to common shareholders by the
weighted-average number of common shares outstanding for the period.
Diluted EPS reflects the potential dilution that could occur if securities
or other contracts to issue common stock or resulted in the issuance of
common stock that then shared in the earnings of the entity. Diluted EPS is
computed similarly to fully diluted EPS pursuant to APB Opinion No. 15.
Basic and diluted earnings per share have been computed based upon net
income as presented in the accompanying statements of operation divided by
the weighted average number of common shares outstanding or assumed to be
outstanding as summarized below.
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
December 31, December 31,
-------------------- --------------------
1998 1997 1998 1997
--------- --------- --------- ---------
<S> <C> <C> <C> <C>
Weighted average number of common
shares used in basic EPS 3,711,147 3,674,737 3,717,555 3,666,126
Effect of dilutive stock options 287,266 341,931 295,730 338,468
--------- --------- --------- ---------
Weighted average number of common
shares and dilutive potential common
shares used in diluted EPS 3,998,413 4,016,668 4,013,285 4,004,594
========= ========= ========= =========
</TABLE>
4. Stock Repurchase Plan: On September 12, 1996 First Savings' Board of
----------------------
Directors adopted the First Savings Bancorp, Inc. Stock Repurchase Plan.
Pursuant to the Plan, First Savings may repurchase shares of its outstanding
common stock in the open market or in privately negotiated transactions in
accordance with regulatory requirements. On September 27, 1996 First
Savings initiated a plan to repurchase 10% of its stock. As of December 31,
1998, 126,740 shares have been repurchased.
6
<PAGE>
FIRST SAVINGS BANCORP, INC.
- ------------------------------------------------------------------------------
MANAGEMENT'S DISCUSSION AND ANALYSIS
General
First Savings Bancorp, Inc., a North Carolina holding company ("First Savings"),
was formed on November 1, 1995 to become the parent holding company of First
Savings Bank of Moore County, Inc., SSB (the "Bank"), a North Carolina chartered
stock savings bank. First Savings engages in no substantial business activities
other than the activities related to ownership of the Bank.
The Bank is primarily engaged in the business of attracting deposits from the
general public and using those funds to originate mortgage loans for the
purchase or construction of one-to-four family homes. To a lesser extent, the
Bank also originates multi-family residential mortgage loans, nonresidential
real estate loans, loans secured by deposits, home equity lines of credit,
installment loans and credit card loans. As a savings bank, the Bank's deposit
accounts are insured up to applicable limits by the Savings Association
Insurance Fund ("SAIF") of the Federal Deposit Insurance Corporation ("FDIC").
The Bank conducts its operations through its main office in Southern Pines,
North Carolina and 4 branch offices located in Moore County.
Financial Condition
First Savings had total assets of $287.8 million at December 31, 1998 compared
to $304.2 million at June 30, 1998. The decrease was primarily attributable to
maturing investment securities and the repayment of $20.0 million in borrowed
funds. Net loans remained relatively unchanged with $208.1 million at June 30,
1998 and $208.3 million at December 31, 1998. This was partially due to a slow
down in new loan originations and an increase in the percentage of loans
originated for sale in the secondary market.
Deposits increased by $4.0 million to $215.9 million at December 31, 1998 from
$211.9 million at June 30, 1998, and shareholders' equity remained unchanged at
$69.5 million.
Liquidity
Maintaining adequate liquidity while managing interest rate risk is the primary
goal of First Savings' asset and liability management strategy. Liquidity is
the ability to fund the needs of the Bank's borrowers and depositors, pay
operating expenses, and meet regulatory liquidity requirements. Maturing
investments, loan and mortgage-backed security principal repayments, deposits
and income from operations are the main sources of liquidity. The Bank's
primary uses of liquidity are to fund loans and to make investments.
As of December 31, 1998, liquid assets (cash and cash equivalents, and
marketable investment securities, less pledged investments) were approximately
$67.7 million, which represents 31.4% of deposits. As a North Carolina
chartered savings bank, First Savings is required to maintain liquid assets
equal to at least 10.0% of its total assets. At December 31, 1998, this
liquidity ratio, based on North Carolina regulations, was 23.5% Management
considers current liquidity levels to be adequate to meet First Savings'
foreseeable needs.
At December 31, 1998, outstanding mortgage loan commitments and available home
equity line of credit balances were $18.4 million, available credit card line of
credit balances were $3.8 million and the undisbursed portion of construction
loans was $9.3 million. Funding for these commitments is expected to be
provided from deposits, loan and mortgage-backed securities principal
repayments, maturing investments and income generated from operations.
7
<PAGE>
FIRST SAVINGS BANCORP, INC.
- ------------------------------------------------------------------------------
MANAGEMENT'S DISCUSSION AND ANALYSIS
Regulatory Capital Requirements
Federal banking regulations require that bank holding companies and their bank
subsidiaries meet various regulatory capital requirements administered by the
federal banking agencies. Failure to meet minimum capital requirements can
initiate certain mandatory, and possibly additional discretionary actions by
regulators that, if undertaken, could have a direct material effect on First
Savings' financial statements. Under capital adequacy guidelines and the
regulatory framework for prompt corrective action, First Savings must meet
specific capital guidelines that involve quantitative measures of First Savings
assets, liabilities, and certain off-balance-sheet items as calculated under
regulatory accounting practices. First Savings' capital amounts and
classification are also subject to qualitative judgements by the regulators
about components, risk weightings, and other factors.
Quantitative measures established by regulation to ensure capital adequacy
require First Savings to maintain minimum amounts and ratios of total and Tier 1
capital to risk-weighted assets, and of Tier 1 capital to average assets.
As of December 31, 1997, the most recent notification from the FDIC categorized
the Bank as well capitalized under the regulatory framework for prompt
corrective action. To be categorized as well capitalized, the Bank must
maintain minimum total risk-based, Tier 1 risk-based, and Tier 1 leverage ratios
as set forth in the table. There are no conditions or events since that
notification that management believes have changed the category.
Actual capital amounts and ratios for First Savings and the Bank
are presented in the table below:
<TABLE>
<CAPTION>
To Be Well
Capitalized Under
For Capital Prompt Corrective
Actual Adequacy Purposes Action Provisions
Amount Ratio Amount Ratio Amount Ratio
---------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
As of December 31, 1998
Total Capital (to Risk Weighted Assets:
Consolidated $69,709 47.78% $11,671 >8.0% n/a n/a
-
First Savings Bank of Moore Co., Inc., SSB $57,532 39.51% $11,650 >8.0% $14,563 >10.0%
- -
Tier 1 Capital (to Risk Weighted Assets):
Consolidated $69,113 47.37% $ 5,825 >4.0% n/a n/a
-
First Savings Bank of Moore Co., Inc., SSB $56,936 39.10% $ 5,825 >4.0% $ 8,738 >6.0%
- -
Tier 1 Capital (to Average Assets):
Consolidated $69,113 23.75% $11,641 >4.0% n/a n/a
-
First Savings Bank of Moore Co., Inc., SSB $56,936 20.28% $11,229 >4.0% $13,870 >5.0%
- -
</TABLE>
In addition to federal regulatory requirements, the Bank is subject to a North
Carolina savings bank capital requirement of at least 5% of total assets. At
December 31, 1998, the Bank's capital ratio under the North Carolina
requirements was 20.78%.
At December 31, 1998, First Savings and the Bank exceeded all capital
requirements.
8
<PAGE>
FIRST SAVINGS BANCORP, INC.
- ------------------------------------------------------------------------------
MANAGEMENT'S DISCUSSION AND ANALYSIS
Comparison of Operating Results for the Three Months Ended Dec. 31, 1998 and
1997.
Net income for the three months ended December 31, 1998 was $1,313,000, compared
to $1,298,000 for the same period in 1997. Basic and diluted earnings per share
for the three months ended December 31, 1998 was $0.35 and $0.33, respectively,
compared to $0.35 and $0.32, respectively, for the same period of the prior
year. The increase in earnings was primarily due to an increase in the net
interest margin and increases in noninterest income.
Net interest income and noninterest income for the quarter ended December 31,
1998 increased $30,000 and $64,000, respectively. Fees and service charges were
the primary factors in the 44% increase in noninterest income.
General and administrative expenses increased from $935,000 for the quarter
ended December 31, 1997 to $1,010,000 for the quarter ended December 31, 1998
due primarily to increases in computer services and compensation and fringe
benefits.
Comparison of Operating Results for the Six Months Ended December 31, 1998 and
1997.
Net income for the six months ended December 31, 1998 was $2,606,000, compared
to $2,574,000 for the same period in 1997. Basic and diluted earnings per share
for the six months ended December 31, 1998 was $0.70 and $0.65, respectively,
compared to $0.70 and $0.64, respectively, for the same period of the prior
year. The increase in earnings was primarily due to an increase in the net
interest margin and increases in noninterest income.
Net interest income increased $94,000 from $5,653,000 for the six months ended
December 31, 1997 to $5,747,000 for the same period of the current year. The
increase was primarily due to higher interest rates spreads.
Led by fees and service charges, noninterest income increased $103,000 or 38.6%
from $267,000 for the six month period ended December 31, 1997 to $370,000 for
the same period of the current year.
General and administrative expenses for the six month period ended December 31,
1998 was $1,995,000 compared to $1,843,000 for the same period of the prior
year. The increase was primarily due to increases in compensation and fringe
benefits and other administrative expenses.
OTHER INFORMATION
Year 2000 Compliance
The "Year 2000" issue confronting First Savings and its suppliers, customers,
customers' suppliers and competitors centers on the inability of computer
systems to recognize the Year 2000. Many existing computer programs and systems
were originally programmed with six digit dates that provided only two digits to
identify the calendar year in the date field, without considering the upcoming
change in the century. With the impending new millennium, these programs and
computers will recognize "00" as the year 1900 rather than the year 2000. Like
most financial service providers, First Savings and its operations may be
significantly affected by the Year 2000 issue due to its dependence on computer
9
<PAGE>
FIRST SAVINGS BANCORP, INC.
- ------------------------------------------------------------------------------
OTHER INFORMATION
generated financial information. Software, hardware, and equipment both within
and outside First Savings' direct control and with whom First Savings
electronically or operationally interfaces (e.g. third party vendors providing
data processing, information system management, maintenance of computer systems,
and credit bureau information) are likely to be affected. Furthermore, if
computer systems are not adequately changed to identify the Year 2000, many
computer applications could fail or create erroneous results. As a result, many
calculations which rely on date field information, such as interest, payment of
due dates and other operating functions, could generate results which are
significantly misstated, and First Savings could experience a temporary
inability to process transactions, prepare statements or engage in similar
normal business activities. In addition, under certain circumstances, failure to
adequately address the Year 2000 issue could adversely affect the viability of
First Savings' suppliers and creditors and the creditworthiness of its
borrowers. Thus, if not adequately addressed, the Year 2000 matter could result
in a significant adverse impact on products, services and the competitive
condition of First Savings.
Financial institution regulators have recently increased their focus upon Year
2000 compliance issues, issuing guidance concerning the responsibilities of
senior management and directors. The Federal Financial Institutions Examination
Council ("FFIEC") has issued several interagency statements on Year 2000 Project
Management Awareness. These statements require financial institutions to, among
other things, examine the Year 2000 implications of reliance on vendors, data
exchange and potential impact on customers, suppliers and borrowers. These
statements also require each federally regulated financial institution to survey
its exposure, measure its risk and prepare a plan in order to solve the Year
2000 issue. In addition, the federal banking regulators have issued safety and
soundness guidelines to be followed by insured depository institutions, such as
the Bank, to assure resolution of any Year 2000 problems. The federal banking
agencies have asserted that Year 2000 testing and certification is a key safety
and soundness issue in conjunction with regulatory exams, and thus an
institution's failure to address appropriately the Year 2000 issue could result
in supervisory action, including such enforcement actions as the reduction of
the institution's supervisory ratings, the denial of applications for approval
of a merger or acquisition, or the imposition of civil money penalties.
In order to address the Year 2000 issue and to minimize its potential adverse
impact, management is engaged in a process to identify areas that will be
affected by the Year 2000, assess their potential impact on operations, monitor
the progress of third party software vendors in addressing the matter, test
changes provided by these vendors, and develop contingency plans for any
critical systems which are not effectively reprogrammed. The plan is divided
into the five phases: (1) awareness, (2) assessment, (3) renovations, (4)
validation, and (5) implementation.
First Savings has substantially completed the first three phases of the plan and
is currently working internally and with external vendors on the final two
phases. First Savings outsources its item processing operations to a service
provider. First Savings' Year 2000 compliance is being closely coordinated with
that of the service provider.
First Savings does not currently expect that the cost of its Year 2000
compliance program will be material to its financial condition or results of
operations, and expects that it will satisfy such compliance program without
material disruption of its operations. In the event that First Savings'
significant suppliers do not successfully and timely achieve Year 2000
compliance, First Savings' business, results of operations or financial
condition could be adversely affected.
10
<PAGE>
FIRST SAVINGS BANCORP, INC.
- ------------------------------------------------------------------------------
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 thereunto duly authorized.
FIRST SAVINGS BANCORP, INC.
2/10/99 /s/ John F. Burns
________________ ________________________________
Date John F. Burns
President
2/10/99 /s/ Timothy S. Maples
________________ ________________________________
Date Timothy S. Maples
Vice President/ Chief Financial Officer
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 9
<MULTIPLIER> 1,000
<S> <C> <C>
<PERIOD-TYPE> 3-MOS 6-MOS
<FISCAL-YEAR-END> JUN-30-1999 JUN-30-1999
<PERIOD-START> OCT-01-1998 JUL-01-1998
<PERIOD-END> DEC-31-1998 DEC-31-1998
<CASH> 5,201 5,201
<INT-BEARING-DEPOSITS> 7,081 7,081
<FED-FUNDS-SOLD> 0 0
<TRADING-ASSETS> 0 0
<INVESTMENTS-HELD-FOR-SALE> 49,602 49,602
<INVESTMENTS-CARRYING> 13,748 13,748
<INVESTMENTS-MARKET> 14,477 14,477
<LOANS> 208,890 208,890
<ALLOWANCE> 596 596
<TOTAL-ASSETS> 287,801 287,801
<DEPOSITS> 215,882 215,882
<SHORT-TERM> 0 0
<LIABILITIES-OTHER> 2,424 2,424
<LONG-TERM> 0 0
0 0
0 0
<COMMON> 34,675 34,675
<OTHER-SE> 34,820 34,820
<TOTAL-LIABILITIES-AND-EQUITY> 287,801 287,801
<INTEREST-LOAN> 4,169 8,393
<INTEREST-INVEST> 1,136 2,467
<INTEREST-OTHER> 102 127
<INTEREST-TOTAL> 5,407 10,987
<INTEREST-DEPOSIT> 2,463 4,983
<INTEREST-EXPENSE> 2,530 5,240
<INTEREST-INCOME-NET> 2,877 5,747
<LOAN-LOSSES> 0 0
<SECURITIES-GAINS> 0 0
<EXPENSE-OTHER> 1,010 1,995
<INCOME-PRETAX> 2,076 4,122
<INCOME-PRE-EXTRAORDINARY> 2,076 4,122
<EXTRAORDINARY> 0 0
<CHANGES> 0 0
<NET-INCOME> 1,313 2,606
<EPS-PRIMARY> 0.35 0.70
<EPS-DILUTED> 0.33 0.65
<YIELD-ACTUAL> 4.03 3.98
<LOANS-NON> 1,097 1,097
<LOANS-PAST> 0 0
<LOANS-TROUBLED> 0 0
<LOANS-PROBLEM> 0 0
<ALLOWANCE-OPEN> 596 596
<CHARGE-OFFS> 0 0
<RECOVERIES> 0 0
<ALLOWANCE-CLOSE> 596 596
<ALLOWANCE-DOMESTIC> 236 236
<ALLOWANCE-FOREIGN> 0 0
<ALLOWANCE-UNALLOCATED> 360 360
</TABLE>
