UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
--------------------------------
FORM 10-QSB
--------------------------------
(Mark One)
(X) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ending September 30, 1998
--------------------------------
or
( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from ___________________ to ____________________
------------------- --------------------
Commission File Number 0-22842
-------------------------------------------
First Bancshares, Inc.
-----------------------
(Exact name of registrant as specified in its charter)
Missouri 43-1654695
-------------------- --------------
(State or other jurisdiction of (I.R.S. Employer
Incorporation or organization) Identification No.)
142 East First St., Mountain Grove, MO 65711
------------------------------------------- ----------
(Address of principal executive offices) (Zip Code)
(417) 926-5151
- - -------------------------
(Registrant's telephone number)
Indicate by check mark whether the Registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the Securities
Exchange Act of 1934 during the preceding twelve months (or for such
shorter period that the registrant was required to file such reports),
and (2) has been subject to such filing requirements for the past 90
days.
Yes X No
------- --------
As of November 12, 1998, there were 2,162,458 shares of the
Registrant's Common Stock, $.01 par value per share, outstanding.
</page>
FIRST BANCSHARES, INC. AND SUBSIDIARIES
FORM 10-QSB
September 30, 1998
INDEX PAGE
PART I-FINANCIAL INFORMATION
ITEM 1 - FINANCIAL STATEMENTS
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (unaudited) 1
CONSOLIDATED STATEMENTS OF INCOME (unaudited) 2
CONSOLIDATED STATEMENTS OF CASH FLOWS(unaudited) 3-4
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS(unaudited) 5
ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS 6-9
PART II - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS 10
ITEM 2. CHANGES IN SECURITIES 10
ITEM 3. DEFAULTS UPON SENIOR SECURITIES 10
ITEM 4. SUBMISSION OF MATTERS TO VOTE OF SECURITIES HOLDERS 10
ITEM 5. OTHER INFORMATION 10
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K 10
SIGNATURES
</page>
<TABLE>
<CAPTION>
FIRST BANCSHARES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
- - - - - - - - - - - - - - - - - - - - - - - -
(Unaudited)
September 30, June 30,
1998 1998
------------- ----------
ASSETS (Dollars in thousands)
(s) <C> <C>
Cash and cash equivalents, including interest-
bearing accounts of $7,392 at September 30
and $5,898 at June 30 $ 9,380 $ 11,863
Federal funds sold 235 -
Certificates of deposit 2,209 2,205
Investment securities available-for-sale, at fair
value 2,375 2,701
Investment securities held-to-maturity (estimated
fair value $820 at September 30 and $1,126 at
June 30) 813 1,114
Investment in Federal Home Loan Bank stock, at cost 1,058 1,058
Mortgage backed certificates available-for-sale,
at fair value 664 703
Loans receivable held-for-investment, net
(includes reserves for loan losses of $540 at
September 30 and $528 at June 30) 150,193 46,406
Accrued interest receivable 789 664
Prepaid expenses 118 126
Property and equipment, less accumulated depreciation
and valuation reserves 4,346 4,298
Intangible assets, less accumulated amortization 986 1,003
Real estate owned - -
Other assets 8 32
----------- -----------
Total assets $ 173,174 $ 172,173
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Customer deposits $ 142,202 $ 141,059
Advances from Federal Home Loan Bank 5,700 5,700
Income taxes payable - current 126 75
Accrued expenses and accounts payable 685 705
Deferred income taxes 284 269
---------- -----------
Total liabilities 148,997 147,808
---------- -----------
Commitments and contingencies - -
Preferred stock, $.01 par value; 2,000,000
shares authorized, none issued - -
Common stock, $.01 par value; 8,000,000 shares
authorized, 2,694,376 issued, 2,163,478 and
2,213,600 outstanding at September 30 and
June 30, respectively 27 27
Paid-in capital 15,917 15,838
Retained earnings - substantially restricted 17,207 16,823
Treasury stock - at cost; 530,898 and 479,976
shares at September 30 and June 30, respectively (8,329) (7,664)
Unearned compensation (688) (734)
Unrealized gain (loss) on securities available-
for-sale, net of applicable deferred income taxes 43 75
--------- ---------
Total stockholders' equity 24,177 24,365
--------- ---------
Total liabilities and stockholders' equity $ 173,174 $172,173
========= =========
</TABLE>
See accompanying notes to Consolidated Financial Statements.
-1-
</page>
<TABLE>
<CAPTION>
FIRST BANCSHARES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
- - - - - - - - - - - - - - - - - - - - -
(Unaudited)
Quarter Ended September 30,
1998 1997
-------- --------
(Dollars in thousands)
<S> <C> <C>
Interest Income:
Loans receivable $ 3,037 $ 2,828
Investment securities 111 280
Mortgage-backed and related securities 17 11
Other interest-earning assets 89 42
-------- ---------
Total interest income 3,254 3,161
-------- --------
Interest Expense:
Customer deposits 1,638 1,453
Borrowed funds 86 340
-------- --------
Total interest expense 1,724 1,793
-------- --------
Net interest income 1,530 1,368
Provision for loan losses 22 19
-------- --------
Net interest income after
provisions for losses 1,508 1,349
-------- --------
Noninterest Income:
Service charges and other fee income 156 107
Loan origination and commitment fees 2 1
Income from real estate operations 24 32
Insurance commissions 33 10
Gain (loss) on investments (12) 88
Gain on sale of property and equipment - -
Total noninterest income 203 238
-------- -------
Noninterest Expense:
Compensation and employee benefits 635 500
Occupancy and equipment 142 106
Deposit insurance premiums 21 18
Advertising and promotional 29 22
Professional fees 22 14
Other 165 108
-------- ------
Total noninterest expense 1,014 768
-------- ------
Income (loss) before taxes 697 819
Income Taxes Expense (Savings) 253 298
------- ------
Net income $ 444 $ 521
======= =======
Basic earnings per share .22 .26
======= =======
Diluted earnings per share .20 .24
======= =======
Dividends per share .03 .025
======= =======
</TABLE>
See accompanying notes to Consolidated Financial Statements.
-2-
</page>
<TABLE>
<CAPTION>
FIRST BANCSHARES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
- - - - - - - - - - - - - - - - - - - -
Three months ended September 30, 1998 and 1997
(Unaudited)
1998 1997
--------- ---------
(Dollars in thousands)
<S> <C> <C>
Cash flows from operating activities:
Net income $ 444 $ 521
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation 63 47
Amortization 17 1
Unrealized loss on investment securities 12 5
Gain on sale of intangibles - (51)
Gain on sale of real estate owned - (7)
Gain on sale of investments securities available-
for-sale - (42)
Premiums and discounts on mortgage-backed
securities and investment securities - (1)
Loss on loans, net of recoveries 22 19
Release of ESOP shares 121 111
Net change in operating accounts:
Accrued interest receivable and other assets (93) (64)
Deferred loan costs (25) (7)
Income taxes payable - current 51 129
Deferred income tax payable 9 (9)
Accrued expenses (20) 10
-------- -------
Net cash from operating activities 601 662
-------- -------
Cash flows from investing activities:
Purchase of investment securities available-for-sale - (198)
Proceeds from sales of investment securities
available-for-sale - 232
Proceeds from maturities of investment securities
available-for-sale 300 2,150
Proceeds from maturities of investment securities
held-to-maturity 289 106
Proceeeds from sale of Federal Home Loan Bank stock - 72
Net change in certificates of deposit (4) 100
Net change in federal funds sold (235) -
Net change in loans receivable (3,784) (2,919)
Proceeds from maturities of mortgage-backed
certificates 39 36
Purchases of property and equipment (111) (27)
Proceeds from sale of property and equipment - 9
Proceeds from sale of intangibles - 81
Proceeds from sale of real estate owned - 121
-------- --------
Net cash used in investing activities (3,506) (237)
-------- --------
See accompanying notes to Consolidated Financial Statements.
-3-
</page>
FIRST BANCSHARES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued)
- - - - - - - - - - - - - - - - - - - - - - - - -
Three months ended September 30, 1998 and 1997
(Unaudited)
1998 1997
--------- ----------
(Dollars in thousands)
Cash flows from financing activities:
Net change in demand deposits, savings accounts,
and certificates of deposit $ 1,143 $ 2,432
Proceeds from borrowed funds - -
Payments on borrowed funds - (4,200)
Proceeds from sale of common stock 4 101
Purchase of treasury stock (665) (179)
Cash dividends paid (60) (51)
--------- ---------
Net cash from financing activities 422 (1,897)
--------- ---------
Net increase/(decrease) in cash and cash equivalents (2,483) (1,472)
Cash and cash equivalents -
beginning of period 11,863 5,809
--------- --------
Cash and cash equivalents -
end of period $ 9,380 $ 4,337
========= =========
</TABLE>
See accompanying notes to Consolidated Financial Statements.
-4-
<PAGE>
FIRST BANCSHARES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)
NOTE A - Basis of Presentation
The consolidated interim financial statements as of September 30,
1998 included in this report have been prepared by the Registrant
without audit. In the opinion of management, all adjustments
(consisting only of normal recurring accruals) necessary for a fair
presentation are reflected in the September 30, 1998 interim financial
statements. The results of operations for the periods ended
September 30, 1998 and 1997 are not necessarily indicative of the
operating results for the full year. The June 30, 1998 Consolidated
Statement of Financial Condition presented with the interim financial
statements was audited and received an unqualified opinion.
NOTE B - Earnings per Share
Basic earnings per share excludes dilution and is computed by
dividing net income available to common stockholders by the weighted
average number of shares outstanding during the period. Diluted
earnings per share reflects the potential dilution that could occur if
securities or other contracts to issue common stock were exercised or
resulted in the issuance of common stock that would share in the
earnings of the Company. Dilutive potential common shares are added
to weighted average shares used to compute basic earnings per share.
The number of shares that would be issued from the exercise of stock
options has been reduced by the number of shares that could have been
purchased from the proceeds at the average market price of the
Company's stock. For the periods presented, unreleased ESOP shares
are not considered outstanding for purposes of calculating earnings
per share.
Dilutive
Weighted Average Number Shares
of Common Shares Issuable
----------------------- --------
1998 2,057,092 124,326
1997 2,006,404 132,652
NOTE C - Treasury Stock
First Bancshares, Inc. has completed six separate stock repurchase
programs between March 9, 1994 and June 30, 1997. During those six
programs, a total of 471,361 shares of stock have been acquired at a
combined cost of $7,368,000. On June 30, 1997, a seventh repurchase
program of 218,932 shares was initiated. As of November 12, 1998,
41,942 shares had been repurchased at a cost of $548,000.Treasury
stock is shown at cost for financial statement presentation.
NOTE G - Accounting Changes
None.
-5-
</page>
FIRST BANCSHARES, INC. MANAGEMENT'S DISCUSSION AND
ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The discussion and analysis included herein covers those
material changes in liquidity and capital resources that have
occurred since June 30, 1998, as well as certain material changes
in results of operations during the three month periods ended
September 30, 1998 and 1997.
The following narrative is written with the presumption that
the users have read or have access to the Company's 1998 Form 10-KSB,
which contains the latest audited financial statements and notes
thereto, together with Management's Discussion and Analysis of
Financial Condition and Results of Operations as of June 30, 1998,
and for the year then ended. Therefore, only material changes in
financial condition and results of operations are discussed herein.
Comparison of the Three Months ended September 30, 1998 to the Three
Months Ended September 30, 1997
Financial Condition. Total assets increased $1.0 million during
the quarter to $173.2 million at September 30, 1998. Net loans
increased $3.8 million to $150.2 million at September 30, 1998. Cash
and cash equivalents decreased $2.5 million during the quarter and
investment securities available-for-sale decreased $2.2 million.
Customer deposits increased by $1.1 million.
Nonperforming assets were $1,925,000, or 1.11% of total assets
at September 30, 1998 compared to $1,764,000, or 1.02% of total
assets, at June 30, 1998. Nonaccrual loans of $56,000 at September
30, 1998 remained the same as at June 30, 1998.
Net Income. Net income decreased $77,000 from $521,000 for the
quarter ended September 30, 1997 to $444,000 for the quarter ended
September 30, 1998. Net interest income after provision for loan
losses increased $159,000. This increase was offset with a $35,000
decrease in noninterest income and a $246,000 increase in noninterest
expense. Income tax expense decreased $45,000 due to the decrease in
income before income tax expense.
Net Interest Income. Net interest income was $1,530,000 for the
quarter ended September 30, 1998, an increase of $162,000 from
$1,368,000 for the quarter ended September 30, 1997. Interest income
increased $93,000 while interest expense decreased $69,000.
Interest Income. Interest income increased $93,000, or 2.9%,
from $3,161,000 for the quarter ended September 30, 1997 to
$3,254,000 for the quarter ended September 30, 1998. The
majority of the change was a $209,000 increase in interest income
from loans receivable from $2,828,000 for the quarter ended
September 30, 1997 to $3,037,000 for the quarter ended September
30, 1998. The increase was attributable to the increase in average
loans outstanding offset by a slight decrease in the average yield.
Interest income from investment securities was $111,000 for the
quarter ended September 30, 1998, a decrease of $169,000 from
$280,000 for the quarter ended September 30, 1997. Less outstanding
securities combined with a lower average interest rate caused the
decrease. Income from other interest-earning assets increased by
$47,000 as funds from the call of investment securities were held
in the FHLB daily-time savings account.
-6-
</page>
FIRST BANCSHARES, INC. MANAGEMENT'S DISCUSSION AND
ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
(continued)
Interest Expense. Interest expense was $1,724,000 for the
quarter ended September 30, 1998. This was a $69,000 decrease from
$1,793,000 for the quarter ended September 30, 1997. Interest
expense on customer deposits increased $185,000, or 12.7%, as
outstanding balances increased offset slightly by a decrease in the
rate paid on those deposits. An decrease in the outstanding balance
of FHLB advances caused the interest expense to decrease by $254,000,
or 74.7%.
Provision for Loan Losses. Loan loss provisions increased by
$3,000 from $19,000 for the quarter ended September 30, 1997 to
$22,000 for the quarter ended September 30, 1998. Actual loan
losses, net of recoveries, was $10,000 for the quarter ended
September 30, 1998 and $9,000 for the quarter ended
September 30, 1997.
Noninterest Income. Noninterest income decreased by $35,000
from $238,000 for the quarter ended September 30, 1997 to $203,000
for the quarter ended September 30, 1998. Service charges and other
fee income increased by $49,000, or 45.7%, from $107,000 for the
quarter ended September 30, 1997 to $156,000 for the quarter ended
September 30, 1998. Insurance commissions increased by $23,000 with
the inclusion of South Central Missouri Title, Inc.
During the quarter ended September 31, 1997, the sale of Lawson
and Lawson Insurance Agency resulted in a $51,000 pre-tax gain and
the sale of common stock at a pre-tax gain of $43,000 occurred
creating the gain on investments. That gain was offset by $6,000
write-down in an auto loan pool security. The write-down on that
same security during the quarter ended September 30, 1998 was
$12,000.
Noninterest Expense. Noninterest expense was $1,014,000 for
the quarter ended September 30, 1998, an increase of $246,000 from
$768,000 for the quarter ended September 30, 1997. The addition of
Crane and Galena branches and South Central Missouri Title, Inc.
added $58,000 to employee compensation and benefits. The increase
in the fair market value of FBSI stock caused the ESOP expense to
increase by $10,000. Normal salary increases and the cost of
additional of personnel at existing locations were $54,000. Group
health insurance premiums and self-insurance costs increased
$29,000. An additional $16,000 of employee costs was capitalized
as loan costs during the quarter ended September 30, 1998.
Occupancy and equipment expense increased $36,000 comprised of
a $12,000 increase in depreciation for the new computer system,
additional computer expenses of $4,500, maintenance expenses of
$7,000 and depreciation and maintenance costs for the Crane and
Galena buildings of $11,000.
Advertising and promotional increased $7,000 in expense for
gifts to customers for opening new checking accounts at the Crane
and Galena branches. Professional fees increased $8,000 in
additional auditing costs.
Other increases in operating expenses were: additional costs
for addition of Crane and Galena branches - $11,000, costs of
checks for customers with selected checking accounts-$4,000,
telephone expense for Telebanker line - $5,000, postage - $16,000,
correspondent bank service charges - $26,000, charitable
contributions - $8,000 and amortization of premium paid for Crane
and Galena branches - $17,000. These increases were offset by a
$34,000 reduction in a loss reserve for items deposited with the
correspondent bank for which First Home had not received credit as
of June 30, 1998. First Home received credit for these items during
the quarter ended September 30, 1998.
Net Interest Margin. Net interest margin increased from 3.48%
for the three months ended September 30, 1997 to 3.73% for the three
months ended September 30, 1998. Income from earning assets
increased by $94,000, or 2%, between the two quarters while interest
expense decreased by $68,000, or 4%. The average earning asset base
increased by $6.7 million, or 4%, which was offset by a $4.6 million,
or 3%, increase in the average interest-bearing liability base.
-7-
</page>
FIRST BANCSHARES, INC. MANAGEMENT'S DISCUSSION AND
ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
(continued)
Liquidity and Capital Resources
First Home's primary sources of funds are deposits, proceeds
from principal and interest payments on loans, mortgage-backed
securities, investment securities and net operating income. While
maturities and scheduled amortization of loans and mortgage-backed
securities are a somewhat predictable source of funds, deposit
flows and mortgage prepayments are greatly influenced by general
interest rates, economic conditions and competition.
First Home must maintain an adequate level of liquidity to
ensure availability of sufficient funds to support loan growth and
deposit withdrawals, satisfy financial commitments and take
advantage of investment opportunities. Funds from a $5 million
Federal Home Loan Bank line of credit can be drawn as an alternative
source of funds. During the period presented, First Home used its
sources of funds primarily to fund loan commitments, pay maturing
savings certificates and deposit withdrawals. At September 30,
1998, First Home had approved loan commitments totaling $1.4 million
and undisbursed loans in process of $2.5 million.
Liquid funds necessary for normal daily operations of First
Home are maintained in three working checking accounts, a daily time
account with the Federal Home Loan Bank of Des Moines and in federal
funds. It is the Savings Bank's current policy to maintain adequate
collected balances in those three checking accounts to meet daily
operating expenses, customer withdrawals, and fund loan demand.
Funds received from daily operating activities are deposited, on a
daily basis, in one of the working checking accounts and
transferred, when appropriate, to daily time or federal funds sold
to enhance income or to reduce any outstanding line-of-credit
advance from the Federal Home Loan Bank.
Normal daily operating expenses are not expected to
significantly change. Noninterest expense as a percentage of
average assets at 2.3% is expected to remain basically constant.
Interest expense is expected to gradually increase as the deposit
base gradually increases. The interest expense increase is
projected to be largely offset as new loans are funded. Customer
deposits are expected to exceed withdrawals.
At September 30, 1998, certificates of deposit amounted to
$89.4 million, or 62% of First Home's total deposits, including
$56.7 million of fixed rate certificates scheduled to mature within
twelve months. Historically, First Home has been able to retain a
significant amount of its deposits as they mature. Management
believes it has adequate resources to fund all loan commitments from
savings deposits, loan payments and the Federal Home Loan Bank line
of credit and adjust the offering rates of savings certificates to
retain deposits in changing interest rate environments.
-8-
</page>
FIRST BANCSHARES, INC. MANAGEMENT'S DISCUSSION AND
ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
(continued)
The Office of Thrift Supervision requires a savings institution
to maintain an average daily balance of liquid assets (cash and
eligible investments) equal to at least 5% of the average daily
balance of its net withdrawable deposits and short-term borrowings.
First Home's liquidity ratio was 8.33% at September 30, 1998%.
First Home consistently maintains liquidity levels in excess of
regulatory requirements, and believes this is an appropriate strategy
for proper asset and liability management.
The Office of Thrift Supervision requires institutions such as
the Savings Bank to meet certain tangible, core, and risk-based
capital requirements. Tangible capital generally consists of
stockholders' equity minus certain intangible assets. Core capital
generally consists of stockholders' equity. The risk-based capital
requirements presently address risk related to both recorded assets
and off-balance sheet commitments and obligations. The following
table summarizes the Savings Bank's capital ratios and the ratios
required by FIRREA and subsequent regulations at September 30, 1998.
Percent of Adjusted
Amount Total Assets
---------- --------------------
(Unaudited)
(Dollars in thousands)
Tangible capital $ 19,353 11.4%
Tangible capital requirement 2,552 1.5
-------- -----
Excess $ 16,801 9.9%
-------- -----
Core capital $ 19,353 11.4%
Core capital requirement 6,806 4.0
-------- -----
Excess $ 12,547 7.4%
-------- -----
Risk-based capital $ 19,572 16.3%
Risk-based capital requirement 9,595 8.0
-------- -----
Excess $ 9,977 8.3%
-------- -----
-9-
FIRST BANCSHARES, INC. AND SUBSIDIARIES
PART II - OTHER INFORMATION
ITEM 1, LEGAL PROCEEDINGS
Neither the Registrant nor the Savings Bank is a party to any
material legal proceedings at this time. From time to time the
Savings Bank is involved in various claims and legal actions
arising in the ordinary course of business.
ITEM 2, CHANGES IN SECURITIES
Not applicable.
ITEM 3, DEFAULTS UPON SENIOR SECURITIES
Not applicable.
ITEM 4, SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
Not applicable.
ITEM 5, OTHER INFORMATION
None
ITEM 6, EXHIBITS AND REPORT ON FORM 8-K
None.
-10-
</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 thereunto duly authorized.
First Bancshares, Inc.
Date: November 16, 1998 By: /s/ Stephen H. Romines
--------------------- -------------------------
Stephen H. Romines
Chairman, President
CEO
By: /s/ Susan J. Uchtman
-----------------------
Susan J. Uchtman
CFO
-11-
</page>
<TABLE> <S> <C>
<ARTICLE> 9
<LEGEND>
dollars in thousands
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> JUN-30-1999
<PERIOD-END> SEP-30-1998
<CASH> 9380
<INT-BEARING-DEPOSITS> 7392
<FED-FUNDS-SOLD> 235
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 3039
<INVESTMENTS-CARRYING> 813
<INVESTMENTS-MARKET> 826
<LOANS> 150193
<ALLOWANCE> 540
<TOTAL-ASSETS> 173174
<DEPOSITS> 142202
<SHORT-TERM> 0
<LIABILITIES-OTHER> 1095
<LONG-TERM> 5700
0
0
<COMMON> 27
<OTHER-SE> 24150
<TOTAL-LIABILITIES-AND-EQUITY> 173174
<INTEREST-LOAN> 3037
<INTEREST-INVEST> 128
<INTEREST-OTHER> 89
<INTEREST-TOTAL> 3254
<INTEREST-DEPOSIT> 1638
<INTEREST-EXPENSE> 1724
<INTEREST-INCOME-NET> 1530
<LOAN-LOSSES> 22
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 1014
<INCOME-PRETAX> 697
<INCOME-PRE-EXTRAORDINARY> 697
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 444
<EPS-PRIMARY> .22
<EPS-DILUTED> .20
<YIELD-ACTUAL> 3.73
<LOANS-NON> 57
<LOANS-PAST> 3070
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 528
<CHARGE-OFFS> 10
<RECOVERIES> 0
<ALLOWANCE-CLOSE> 540
<ALLOWANCE-DOMESTIC> 540
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 253
</TABLE>
