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, 1999
-------------------------------
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, 1999, there were 2,012,211 shares of the
Registrant's Common Stock, $.01 par value per share, outstanding.
</page>
FIRST BANCSHARES, INC. AND SUBSIDIARIES
FORM 10-QSB
September 30, 1999
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
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited) 5
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS(unaudited) 6-7
ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS 8-11
PART II - OTHER INFORMATION
- ----------------------------
ITEM 1. LEGAL PROCEEDINGS 12
ITEM 2. CHANGES IN SECURITIES 12
ITEM 3. DEFAULTS UPON SENIOR SECURITIES 12
ITEM 4. SUBMISSION OF MATTERS TO VOTE OF SECURITIES HOLDERS 12
ITEM 5. OTHER INFORMATION 12
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K 12
SIGNATURES
</page>
<TABLE>
<CAPTION>
FIRST BANCSHARES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
- - - - - - - - - - - - - - - - - - - - - - - -
(Unaudited)
September 30, June 30,
1999 1999
---------- ----------
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 $ 7,799 $ 10,722
Federal funds sold 245 245
Certificates of deposit 1,286 1,209
Investment securities available-for-sale, at fair value 3,661 3,217
Investment securities held-to-maturity (estimated
fair value $1,530 at September 30 and $1,530 at June 30) 1,541 1,544
Investment in Federal Home Loan Bank stock, at cost 1,058 1,058
Mortgage backed certificates available-for-sale, at fair value 527 550
Loans receivable held-for-investment, net (includes reserves for
loan losses of $561 at September 30 and $540 at June 30) 158,050 153,616
Accrued interest receivable 894 772
Prepaid expenses 107 91
Property and equipment, less accumulated depreciation
and valuation reserves 4,851 4,652
Intangible assets, less accumulated amortization 868 885
Real estate owned - -
Other assets 8 160
--------- ---------
Total assets $ 180,895 $ 178,721
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
-------------------------------------
Customer deposits $ 153,214 $ 151,210
Advances from Federal Home Loan Bank 2,200 2,200
Income taxes payable - current 204 196
Accrued expenses and accounts payable 659 672
Deferred income taxes 209 194
--------- ---------
Total liabilities 156,486 154,472
--------- ---------
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,
2,725,796 issued, 2,038,021 and 2,063,902 outstanding at
September 30 and June 30, respectively 27 27
Paid-in capital 16,328 16,245
Retained earnings - substantially restricted 18,788 18,362
Treasury stock - at cost; 687,775 and 654,894 shares at
September 30 and June 30, respectively (10,240) (9,873)
Unearned compensation (451) (491)
Unrealized gain (loss) on securities available-for-sale, net of
applicable deferred income taxes (43) (21)
---------- --------
Total stockholders' equity 24,409 24,249
---------- --------
Total liabilities and stockholders' equity $ 180,895 $ 178,721
========== ==========
</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,
1999 1998
----------- ----------
Dollars in thousands)
<S> <C> <C>
Interest Income:
Loans receivable $ 3,135 $ 3,037
Investment securities 100 111
Mortgage-backed and related securities 9 17
Other interest-earning assets 88 89
-------- --------
Total interest income 3,332 3,254
-------- --------
Interest Expense:
Customer deposits 1,642 1,638
Borrowed funds 33 86
-------- --------
Total interest expense 1,675 1,724
-------- --------
Net interest income 1,657 1,530
Provision for loan losses 17 22
-------- --------
Net interest income after
provisions for losses 1,640 1,508
-------- --------
Noninterest Income:
Service charges and other fee income 153 156
Loan origination and commitment fees 2 2
Income from real estate operations 27 24
Insurance commissions 50 33
Gain (loss) on investments (1) (12)
Gain on sale of property and equipment - -
--------- ---------
Total noninterest income 231 203
--------- ---------
Noninterest Expense:
Compensation and employee benefits 663 635
Occupancy and equipment 149 142
Deposit insurance premiums 22 21
Advertising and promotional 16 29
Professional fees 24 22
Other 218 165
--------- --------
Total noninterest expense 1,092 1,014
--------- --------
Income (loss) before taxes 779 697
Income Taxes Expense (Savings) 267 253
---------- --------
Net income $ 512 $ 444
========== ========
Basic earnings per share $ .26 $ .22
========== =========
Diluted earnings per share $ .25 $ .20
========== =========
Dividends per share $ .04 $ .03
========== =========
</table
See accompanying notes to Consolidated Financial Statements.
-2-
</page>
</TABLE>
<TABLE>
<CAPTION>
FIRST BANCSHARES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
- - - - - - - - - - - - - - - - - - - -
Three months ended September 30, 1999 and 1998
(Unaudited)
1999 1998
----------- -----------
(Dollars in thousands)
<S> <C> <C>
Cash flows from operating activities:
Net income $ 512 $ 444
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation 73 63
Amortization 17 17
Unrealized loss on investment securities 1 12
Loss on loans, net of recoveries 17 22
Release of ESOP shares 89 121
Net change in operating accounts:
Accrued interest receivable and other assets 14 (93)
Deferred loan costs (14) (25)
Income taxes payable - current 8 51
Deferred income tax payable 28 9
Accrued expenses (13) (20)
-------- -------
Net cash from operating activities 732 601
-------- -------
Cash flows from investing activities:
Purchase of investment securities available-for-sale (500) -
Proceeds from maturities of investment securities
available-for-sale - 300
Proceeds from maturities of investment securities
held-to-maturity 3 289
Net change in certificates of deposit (77) (4)
Net change in federal funds sold - (235)
Net change in loans receivable (4,437) (3,784)
Proceeds from maturities of mortgage-backed
certificates 42 39
Purchases of property and equipment (284) (111)
--------- --------
Net cash used in investing activities (5,253) (3,506)
--------- --------
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, 1999 and 1998
(Unaudited)
1999 1998
--------- ----------
(Dollars in thousands)
Cash flows from financing activities:
Net change in demand deposits, savings accounts,
and certificates of deposit $ 2,004 $ 1,143
Proceeds from sale of common stock 35 4
Purchase of treasury stock (367) (665)
Cash dividends paid (74) (60)
-------- --------
Net cash from financing activities 1,598 422
-------- --------
Net increase/(decrease) in cash and cash equivalents (2,923) (2,483)
Cash and cash equivalents -
beginning of period 10,722 11,863
-------- --------
Cash and cash equivalents -
end of period $ 7,799 $ 9,380
======= ========
</TABLE>
See accompanying notes to Consolidated Financial Statements.
-4-
</page>
<TABLE>
<CAPTION>
FIRST BANCSHARES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
- - - - - - - - - - - - - - - - - - - - - - - -
Three months ended September 30, 1999 and 1998
(Unaudited)
1999 1998
--------- ---------
(Dollars in thousands)
<S> <C> <C>
Net income $ 512 $ 444
------- -------
Other comprehensive income, net of tax
Unrealized gains (losses) on securities (22) (32)
------- -------
Other comprehensive income (22) (32)
------- -------
Comprehensive income $ 490 $ 412
======= =======
</TABLE>
See accompanying notes to Consolidated Financial Statements.
-5-
</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,
1999 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, 1999 interim
financial statements. The results of operations for the periods
ended September 30, 1999 and 1998 are not necessarily indicative of
the operating results for the full year. The June 30, 1999
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
----------------------- --------
1999 2,053,371 92,816
1998 2,057,092 124,326
-6-
</page>
FIRST BANCSHARES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)
(continued)
NOTE C - Treasury Stock
- -----------------------
First Bancshares, Inc. has completed seven separate stock repurchase
programs between March 9, 1994 and September 21, 1999. During those
seven programs, a total of 683,308 shares of stock have been acquired
at a combined cost of $10.2 million. On September 21, 1999, an eighth
repurchase program of 203,239 shares was initiated. As of November
12, 1999, 30,277 shares had been repurchased at a cost of $340,000.
Treasury stock is shown at cost for financial statement presentation.
NOTE D - Accounting Changes
- ---------------------------
In June 1998, the Financial Accounting Standards Board ("FASB")
issued Statement of Financial Accounting Standard ("SFAS") No. 133,
"Accounting for Derivative Instruments and Hedging Activities,"
which established accounting and reporting standards for derivative
instruments, including certain derivative instruments embedded in
other contracts, (collectively referred to as derivatives) and for
hedging activities. It requires that an entity recognize all
derivatives as either assets or liabilities in the statement of
financial position and measure those instruments at fair value.
This Statement is was adopted July 1, 1999 by the Company. The
adoption of this standard has not had a material impact on the
Company to date.
NOTE E - Year 2000 Issues
- -------------------------
As reported in the June 30, 1999 annual report, management believes
the major areas with respect to Year 2000 have been addressed and the
progress of remedying the related issues have been completed on
schedule. The contingency plan was tested during the quarter ended
September 30, 1999 with succesful results. The plan will continually
be evaluated and additional testing performed during the remainder of
1999. First Home has spent approximately $293,000 and estimates
future costs for Year 2000 compliance to be $7,000 to $12,000.
-7-
</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, 1999, as well as certain material changes
in results of operations during the three month periods ended
September 30, 1999 and 1998.
The following narrative is written with the presumption that
the users have read or have access to the Company's 1999 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,
1999, 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, 1999 to the Three Months
Ended September 30, 1998
Financial Condition. Total assets increased $2.2 million
during the quarter to $180.9 million at September 30, 1999. Net
loans increased $4.4 million to $158.1 million. Cash and cash
equivalents decreased $2.9 million during the quarter while
investment securities available-for-sale in increased $.4 million.
Customer deposits increased by $2.0 million.
Nonperforming assets were $2.3 million, or 1.27% of total
assets at September 30, 1999 compared to $1.9 million, or 1.06% of
total assets, at June 30, 1999.
Net Income. Net income increased $68,000 from $444,000 for the
quarter ended September 30, 1998 to $512,000 for the quarter ended
September 30, 1999. Net interest income after provision for loan
losses increased $132,000. Noninterest income increased by $28,000;
however, noninterest expense increased by $78,000. Income tax
expense increased $14,000 due to the increase in income before income
tax expense.
Net Interest Income. Net interest income was $1,657,000 for the
quarter ended September 30, 1999, an increase of $127,000 from
$1,530,000 for the quarter ended September 30, 1998. Interest income
increased $78,000 while interest expense decreased $49,000.
Interest Income. Interest income increased $78,000, or 2.4%,
from $3,254,000 for the quarter ended September 30, 1998 to
$3,332,000 for the quarter ended September 30, 1999. Interest income
from loans receivable increased by $98,000 from $3,037,000 for the
quarter ended September 30, 1998 to $3,135,000 for the quarter ended
September 30, 1999. The increase was attributable to an increase in
average loans outstanding somewhat offset by a slight decrease in
average yield.
Interest income from investment securities was $100,000 for
the quarter ended September 30, 1999, a decrease of $11,000 from
$111,000 for the quarter ended September 30, 1998. Less outstanding
securities combined with a lower average interest rate caused the
decrease. Income from mortgage-backed securities decreased by
$8,000 as principal payments reduced the outstanding balance of
these securities.
-8-
</page>
FIRST BANCSHARES, INC. MANAGEMENT'S DISCUSSION AND
ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
(continued)
Interest Expense. Interest expense was $1,675,000 for the
quarter ended September 30, 1999, a $49,000 decrease from $1,724,000
for the quarter ended September 30, 1998. Interest expense on
customer deposits increased $4,000 as outstanding balances increased
offset slightly by a decrease in the rate paid on those deposits. A
decrease in the outstanding balance of FHLB advances further reduced
interest expense by $53,000, or 61.6%.
Provision for Loan Losses. Loan loss provisions decreased by
$5,000 from $22,000 for the quarter ended September 30, 1998 to
$17,000 for the quarter ended September 30, 1999. During the quarter
ended September 30, 1999, recoveries exceeded charge-offs by $3,900.
Actual loan losses, net of recoveries, were $10,000 for the quarter
ended September 30, 1998.
Noninterest Income. Noninterest income increased by $28,000
from $203,000 for the quarter ended September 30, 1998 to $231,000
for the quarter ended September 30, 1999. Title insurance
commissions increased $17,000 with increased activity at the
Hartville office and addition of South Central Missouri Title, Inc.
offices in Marshfield and Ava, Missouri.
The write-down in an auto loan pool security during the quarter
ended September 30, 1998 was $12,000 compared to a $1,000 write-down
of a foreign currency cash reserve account during the quarter ended
September 30, 1999.
Noninterest Expense. Noninterest expense was $1,092,000 for the
quarter ended September 30, 1999, an increase of $78,000 from
$1,014,000 for the quarter ended September 30, 1998. Two new South
Central Missouri Title, Inc. branches added $14,000 to employee
compensation and benefits. Decrease in the fair market value of FBSI
stock caused the ESOP expense to decrease by $32,000. Group health
insurance premiums and self-insurance costs increased $5,000.
Vesting of the MRP shares was completed in December 1998 which
created a decrease of $12,000 in the related compensation expense.
In July 1999, FHSB management initiated an reimbursement plan to
employees who purchased a personal computer for home use. The
expense for the quarter ended September 30, 1999 for this plan was
$52,000.
Occupancy and equipment expense increased $7,000 comprised of
expenses related to computer upgrades and repairs to rental
properties.
Advertising and promotional decreased $13,000 in expense for
gifts to customers for opening new checking accounts at the Crane
and Galena branches. The quarter ended September 30, 1998 included
a promotion of opening new checking accounts at these branches.
Professional fees increased $2,000 in additional auditing costs.
Other increases in operating expenses were: costs of in-house
printing of checks for customers with selected checking accounts-
$9,000, postage - $4,000. Also contributing to the overall increase
was a $35,000 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. The addition of
offices of South Central Missouri Title, Inc. increased related
other expenses by $3,000.
Net Interest Margin. Net interest margin increased from 3.73%
for the three months ended September 30, 1998 to 3.81% for the three
months ended September 30, 1999. Income from earning assets
increased by $77,000, or 2%, between the two quarters while interest
expense decreased by $50,000, or 3%. The average earning asset base
increased by $8.5 million, or 5%, which was offset by a $7.5 million,
or 5%, increase in the average interest-bearing liability base.
-9-
</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 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, 1999, First
Home had approved loan commitments totaling $1.0 million and
undisbursed loans in process of $2.3 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 2.5% 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, 1999, certificates of deposit amounted to
$91.8 million, or 59% of First Home's total deposits, including $58.4
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.
-10-
</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 7.02% at September 30, 1999. 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, 1999.
Percent of Adjusted
Amount Total Assets
---------- ------------
(Unaudited)
(Dollars in thousands)
Tangible capital $20,309 11.4%
Tangible capital requirement 2,673 1.5
------- ------
Excess $17,636 9.9%
======= ======
Core capital $20,309 11.4%
Core capital requirement 7,129 4.0
------- ------
Excess $13,180 7.4%
======= ======
Risk-based capital $20,553 15.7%
Risk-based capital requirement 10,433 8.0
------- ------
Excess $10,120 7.7%
======= ======
-11-
</page>
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.
-12-
</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 15, 1999 By: /s/ Stephen H. Romines
---------------------- ------------------------
Stephen H. Romines
Chairman, President
CEO
By: /s/ Susan J. Uchtman
----------------------
Susan J. Uchtman
CFO
</page>
23
<TABLE> <S> <C>
<ARTICLE> 9
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> JUN-30-2000
<PERIOD-END> SEP-30-1999
<CASH> 7799
<INT-BEARING-DEPOSITS> 7392
<FED-FUNDS-SOLD> 245
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 3661
<INVESTMENTS-CARRYING> 1541
<INVESTMENTS-MARKET> 1530
<LOANS> 158050
<ALLOWANCE> 561
<TOTAL-ASSETS> 180895
<DEPOSITS> 153214
<SHORT-TERM> 2000
<LIABILITIES-OTHER> 1072
<LONG-TERM> 200
0
0
<COMMON> 27
<OTHER-SE> 24382
<TOTAL-LIABILITIES-AND-EQUITY> 180895
<INTEREST-LOAN> 3135
<INTEREST-INVEST> 109
<INTEREST-OTHER> 88
<INTEREST-TOTAL> 3332
<INTEREST-DEPOSIT> 1642
<INTEREST-EXPENSE> 1675
<INTEREST-INCOME-NET> 1657
<LOAN-LOSSES> 17
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 1092
<INCOME-PRETAX> 779
<INCOME-PRE-EXTRAORDINARY> 512
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 512
<EPS-BASIC> .26
<EPS-DILUTED> .25
<YIELD-ACTUAL> 3.81
<LOANS-NON> 55
<LOANS-PAST> 2256
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 540
<CHARGE-OFFS> 0
<RECOVERIES> 4
<ALLOWANCE-CLOSE> 561
<ALLOWANCE-DOMESTIC> 561
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 278
</TABLE>
