UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
(Mark One) FORM 10-QSB
[ X ] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934.
For the quarterly period ended June 30, 1996
-------------------------
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT
For the transition period from to
Commission file number 33-70184
C&F Financial Corporation
(Exact name of small business issuer as
specified in its charter)
Virginia 54-1680165
State of other jurisdiction of I.R.S. Employer
incorporation of organization) Identification No.)
Eighth and Main Streets West Point VA 23181
(Address of principal executive offices) (Zip Code)
(Issuer's telephone number) (804) 843-2360
(Former name, former address and former fiscal year,
if changed since last report)
Check whether the issuer (1) filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such
shorter period that the registrant was required to file such reports), and (2)
has been subject to such filing requirements for the past 90 days.
[x] Yes [ ] No
APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDINGS DURING THE PRECEDING FIVE YEARS
Check whether the registrant filed all documents and reports required to be
filed by Section 12, 13 or 15(d) of the Exchange Act after the distribution of
securities under a plan confirmed by a court.
[ ] Yes [ ] No
APPLICABLE ONLY TO CORPORATE ISSUERS
State the number of shares outstanding of each on the issuer's classes of
common equity, as of the latest practicable
date: 2,232,844 as of July 31, 1996
---------------------------------------------------------
Transitional Small Business Disclosure Format (Check one): [ ] Yes [x] No
<PAGE>
TABLE OF CONTENTS
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Part I - Financial Information Page
<S> <C>
Item 1. Financial Statements
Consolidated Balance Sheet -
June 30, 1996 and December 31, 1995...........................................1
Consolidated Statement of Income -
Three months ended June 30, 1996 and 1995.....................................2
Consolidated Statement of Income -
Six months ended June 30, 1996 and 1995.......................................3
Consolidated Statement of Cash Flows -
Six months ended June 30, 1996 and 1995.......................................4
Notes to Consolidated Financial Statements........................................5
Item 2. Management's Discussion and Analysis .............................................6
Part II - Other Information
Item 1. Legal Proceedings................................................................12
Item 6. Exhibits and Reports on Form 8-K.................................................12
Signatures .................................................................................13
</TABLE>
<PAGE>
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(Amounts in thousands of dollars)
<TABLE>
<CAPTION>
ASSETS 6-30-96 12-31-95
<S> <C>
Cash and due from banks $ 8,397 $ 9,789
Interest -bearing deposits in other banks 2,128 3,031
Federal funds sold 630
--------- ---------
Total cash and cash equivalents 10,525 13,450
Investment securities
Available for sale securities at fair value,
amortized cost of $17,321,000 and $23,623,000,
respectively 16,997 23,742
Held to maturity at amortized cost,
fair value of $71,038,000 and $78,606,000,
respectively 71,253 76,896
Loans held for sale 15,200 1,885
Loans (gross) 126,335 111,935
Less: unearned income (7) (9)
Less: allowance for loan losses (1,905) (1,914)
---------- ----------
Net loans 124,423 110,012
Federal Home Loan Bank stock 857 805
Bank premises and equipment 6,160 5,921
Accrued interest receivable 2,352 2,439
Other assets 4,973 4,010
--------- ---------
Total assets $ 252,740 $ 239,160
========= =========
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits
Non-interest-bearing demand deposits $ 30,779 $ 28,898
Savings and interest-bearing demand deposits 81,324 84,313
Time deposits 94,874 90,801
--------- ---------
Total deposits 206,977 204,012
Other Borrowings 7,500
Accrued interest payable 560 570
Other liabilities 4,988 2,760
--------- ---------
Total liabilities 220,025 207,342
Shareholders' Equity
Common stock 2,233 2,231
Additional paid-in capital 1,301 1,290
Retained earnings 29,001 27,805
Net unrealized gain on securities
available for sale , net of tax 180 492
--------- ---------
Total shareholders' equity 32,715 31,818
--------- ---------
Total liabilities and
shareholders' equity $ 252,740 $ 239,160
========= =========
</TABLE>
The Company's notes are an integral part of the consolidated financial
statements.
<PAGE>
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(In thousands of dollars, except for per share amounts)
<TABLE>
<CAPTION>
Three Months Ended June 30,
INTEREST INCOME 1996 1995
- --------------- ---- ----
<S> <C>
Interest and fees on loans $ 3,013 $ 2,318
Interest on other market investments 23
Interest on fed funds sold 40
Interest on investment securities
U.S. Treasury and U.S. Government Agencies 880 799
Obligations on states and political sub. 524 425
Other bonds 100 36
-------- -------
Total interest income 4,540 3,618
INTEREST EXPENSE
Interest on deposits 1,869 1,474
Interest on short-term borrowings 63 4
-------- -------
Total interest expense 1,932 1,478
Net interest income 2,608 2,140
Provision for loan losses
OTHER OPERATING INCOME
Service charges on deposit accounts 248 210
Gain on sale of loans 1,104
Other service charges, commissions, and fees 270 61
-------- -------
Total other operating income 1,622 271
Realized gain on securities 4
OTHER OPERATING EXPENSES
Salaries and employee benefits 1,744 676
Occupancy expenses 423 233
Other operating expenses 677 484
-------- -------
Total other operating expenses 2,844 1,393
Income before income taxes 1,390 1,018
Income tax expense 254 304
-------- -------
Net Income $ 1,136 $ 714
======== =======
PER SHARE DATA
Net income .51 $ .32
Cash dividends paid and declared .15 .15
Number of shares outstanding 2,232,844 2,228,744
</TABLE>
The Company's notes are an integral part of the consolidated financial
statements.
<PAGE>
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(In thousands of dollars, except for per share amounts)
<TABLE>
<CAPTION>
Six Months Ended June 30,
INTEREST INCOME 1996 1995
- --------------- ---- ----
<S> <C>
Interest and fees on loans $ 5,771 $ 4,562
Interest on other market investments 64
Interest on fed funds sold 1 60
Interest on investment securities
U.S. Treasury and U.S. Government Agencies 1,854 1,636
Obligations on states and political sub. 1,024 852
Other bonds 201 73
-------- -------
Total interest income 8,915 7,183
INTEREST EXPENSE
Interest on deposits 3,749 2,791
Interest on short-term borrowings 77 12
-------- -------
Total interest expense 3,826 2,803
Net interest income 5,089 4,380
OTHER OPERATING INCOME
Service charges on deposit accounts 458 409
Gain on sale of loans 1,530
Other service charges, commissions,
and fees 507 117
-------- -------
Total other operating income 2,495 526
Realized gain(loss) on securities (13) 7
OTHER OPERATING EXPENSES
Salaries and employee benefits 3,311 1,397
Occupancy expenses 842 447
Other operating expenses 1,161 891
-------- -------
Total other operating expenses 5,314 2,735
Income before income taxes 2,257 2,178
Income tax expense 392 591
-------- -------
Net Income $ 1,865 $ 1,587
======== =======
PER SHARE DATA
Net income $ .84 $ .71
Cash dividends paid and declared .30 .29
Number of shares outstanding 2,232,844 2,228,744
</TABLE>
The Company's notes are an integral part of the consolidated financial
statements.
<PAGE>
CONSOLIDATED STATEMENTS ON CASH FLOWS
(Unaudited)
(Amounts in thousands of dollars)
<TABLE>
<CAPTION>
Six Months Ended June 30,
1996 1995
---- ----
<S> <C>
Cash flows from operating activities:
Net income $ 1,865 $ 1,587
Adjustments to reconcile net income to
net cash provided by (used in) operating activities:
Depreciation 340 250
Amortization of goodwill 122
Accretion of discounts and amortization of
premiums on investment securities, net (49) (101)
Net realized gain(loss) on securities (13) (7)
Proceeds from sale of loans 60,407
Origination of loans held for sale (75,252)
Gain on sale of loans 1,530
Change in other assets and liabilities:
Other real estate owned 59
Accrued interest receivable and other assets (822) (2,613)
Accrued interest payable and
other liabilities 2,218 848
-------- --------
Net cash provided by (used in) operating activities (9,654) 23
--------- --------
Cash flows from investing activities:
Proceeds from maturities of investments
held to maturity 11,156 6,996
Proceeds from sales and maturities of
investments available for sale 8,850
Purchase of investment securities (5,519) (11,531)
Purchase of investments available for sale (2,521)
Net decrease (increase) in customer loans (14,411) 1,224
Purchase of corporate premises and equipment (579) (1,592)
Purchase of Federal Home Loan Bank stock (52) (32)
--------- ---------
Net cash used in investing activities (3,076) (4,935)
--------- ---------
Cash flows from financing activities:
Net increase(decrease) in deposits (4,872) 27,312
Net increase in other borrowings 7,500
Assumption of deposit liabilities in
branch acquisition, net of premium paid 7,837
Proceeds from exercise of stock options 13 1
Cash dividends (670) (646)
--------- ---------
Net cash provided by (used in) financing activities 9,808 26,667
-------- --------
Net increase (decrease) in cash and cash equivalents (2,925) 21,755
Cash and cash equivalents at beginning of period 13,450 6,995
-------- --------
Cash and cash equivalents at end of period $ 10,525 $ 28,750
======== ========
Supplemental disclosure
Interest paid $ 3,827 $ 2,755
Income taxes paid $ 129 $ 521
</TABLE>
The Company's notes are an integral part of the consolidated financial
statements.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Note 1
In the opinion of C&F Financial Corporation's management, the accompanying
unaudited consolidated financial statements contain all adjustments, consisting
only of normal recurring accruals, necessary to present fairly the financial
position as of June 30, 1996, the results of operations for the three-month and
six-month periods ended June 30, 1996 and 1995, and cash flows for the six-month
periods ended June 30, 1996 and 1995.
These consolidated financial statements should be read in conjunction with
the consolidated financial statements and notes thereto included in the C&F
Financial Annual Report on Form 10-KSB for the year ended December 31, 1995.
The results of operations for the interim periods are not necessarily
indicative of the results to be expected for the full year.
The consolidated financial statements include the accounts of the Company
and its subsidiaries, with all significant intercompany transactions and
accounts being eliminated in consolidation.
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent liabilities at the date of the financial statements and
the reported amounts of revenues and expenses during the reporting period.
Actual results could differ from those estimates.
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATION
The following discussion supplements and provides information about the
major components of the results of operations and financial condition, liquidity
and capital resources of C&F Financial Corporation (the "Company"). This
discussion and analysis should be read in conjunction with the Consolidated
Financial Statements, and supplemental financial data.
Overview
Net income totaled $1.9 million for the first six months ended June 30,
1996, an increase of 17.5% over the same period of 1995. Earnings per share were
$.84 and $.71 for June 30, 1996 and 1995, respectively. Net income increase
59.1% for the second quarter of 1996 compared to the second quarter of 1995. Net
income for the second quarter of 1996 was $1.1 million compared to $714,000 for
the same period of 1995. Earnings per share were $.51 for the second quarter, up
59.4% from $.32 per share for June 30, 1995.
Profitability as measured by the Company's return on average assets
(ROA) was 1.52% for the six month period ended June 30, 1996, down from 1.66%
for the same period of 1995. Another key indicator of performance, the return on
average equity (ROE) for June 30, 1996 was 11.48%, compared to 10.73% for the
six month period ended June 30, 1995
RESULTS OF OPERATIONS
Net Interest Income
Net interest income represents the principal source of earnings
for the Company. Net interest income equals the amount by which interest income
exceeds interest expense. Changes in the volume and mix of earning assets and
interest-bearing liabilities, as well as their respective yields and rates, have
a significant impact on the level of net interest income.
Net interest income for the six month period ended June 30, 1996 was
$5.1 million, up $709,000, or 16.2% from $4.4 million for the six month period
ended June 30, 1995. Interest income increased $1.7 million, or 24.1%, while
interest expense increased $1.0 million, or 36.5%, in comparing the six months
ended June 30, 1996 to the same period of 1995.
Net interest income for the three months ended June 30, 1996 was $2.6
million, or 21.9% from $2.1 million for the same three months of 1995. Interest
income increased $922,000, or 25.5%, while interest expense increased $454,000,
or 30.7% in comparing the second quarter of 1996 to the same period of 1995.
The net interest increase shown when comparing June 30, 1996 to the same
period of 1996 is a result of a greater increase in earning assets than
interest-bearing liabilities during 1996.
Non-Interest Income
Non-interest income increase $2.0 million , or 374.3% for the six month
period ended June 30, 1996 over the same period of 1995. Non-interest income
increased $1.4 million, or 498.5% when comparing three months ended June 30,
1996 to the same period of 1995. The majority of this increase is attributed to
income generated from the sale of mortgage loans by C&F Mortgage Corporation, a
subsidiary of the Company. C&F Mortgage Corporation began originating and
selling residential mortgages on December 1, 1995. Income from the sale of loans
was $1.5 million for the first six months of 1996. Other service charges,
commissions, and fees increased $390,000, or 333.3% comparing June 30, 1996
year-to-date to the same period of 1995. This increase shows steady growth in
other sources of non-interest income, including title insurance fees from C&F
Title Agency, Inc. and income generated from C&F Investment Services, Inc.
Non-Interest Expense
Non-interest expense increased $2.6 million, or 94.3%, for the six month
period ended June 30, 1996 over the same period of 1995. A similar increase of
104.2% is reflected when comparing the three month period ended June 30, 1996 to
the same period of 1995. The increase in non-interest expense when comparing the
two periods is attributed to overall growth of the Company. In April, 1995 the
subsidiary C&F Investment Services, Inc. was organized to offer full-service
brokerage services, and the Company opened Citizens and Farmers Bank branch in
Varina, Virginia. In June, 1995 the Bank acquired two additional branches in
Middlesex and Tappahannock, Virginia. C&F Mortgage Corporation, a subsidiary of
Bank, was organized in September, and opened for business on December 1, 1995,
to originate and sell residential mortgages. In February, 1996 the deposit
liabilities of a West Point, Virginia branch were acquired. The growth of the
Company increased salaries and employee benefits by $1.9 million, or 137% when
comparing the first six months of 1996 to the same period of 1995. Also, related
to the recent growth occupancy expenses increased $395,000, or 88.4% when
comparing June 30, 1996 year-to-date to June 30, 1995.
Income Taxes
Income tax expense for the period ended June 30, 1996 amounted to $392,000,
compared to $591,000 for June 30, 1995.
Asset Quality-Allowance /Provision For Loan Losses
The allowance is to provide for potential losses inherent in the loan
portfolio. Among other factors, management considers the Company's historical
loss experience, the size and composition of the loan portfolio, the value and
adequacy of collateral and guarantors, non-performing credits, and current and
anticipated economic conditions. There are additional risks of future loan
losses which cannot be precisely quantified or attributed to particular loans or
classes of loans. Since those risk include general economic trends as well as
conditions affecting individual borrowers, the allowance for loan losses is an
estimate. The allowance is also subject to regulatory examinations and
determination as to adequacy, which may take into account such factors as the
methodology used to calculate the allowance and the size of the allowance in
comparison to peer banks identified by regulatory agencies.
The Company had no provision expense for the first six months of 1996 or 1995.
Loans charged off amounted to $10,000 for June 30, 1996 and $3,000 for the same
period of 1995. Recoveries amounted to $1,000 and $24,000 for June 31, 1996 and
1995, respectively. The ratio of net charge-offs to average outstanding loans
was .007% compared to .003% for the periods. Management felt that the reserve
was adequate to absorb any losses on existing loans which may become
uncollectible.
Non-performing Assets
Total non-performing assets, which consist of the Company's non-accrual
loans was $450,000 at June 30, 1996, a decrease of $457,000 from December 31,
1995. Despite the fact that the Company has more non-performing loans than
desired, management believes that losses will be minimal. It is expected that
non-accruing loans will continue to be reduced in 1996.
The Company places a loan on non-accrual status when management
believes, after considering economic and business conditions and collection
efforts, that the borrower's financial condition is such that collection of both
principal and interact is doubtful. Corporate policy is to place loans on
non-accrual status if principal or interest is past due for 90 days or more
unless the debt is both well secured and in the process of being collected.
FINANCIAL CONDITION
Summary
A financial institution's primary sources of revenue are generated by
its earning assets, while its major expenses are produced by the funding of
those assets with interest-bearing liabilities. Effective management of these
sources and uses of funds is essential in attaining a financial institution's
maximum profitability while maintaining a minimum amount of risk.
At June 30, 1996, the Company had total assets of $252.7 million, up
5.7% from $239.1 million over year-end 1995. The asset growth is attributed to
the continuous expansion and growth of the Company.
Loan Portfolio
At June 30, 1996, loans held for sale amounted to $15.2 million, an
increase over the $1.9 million held at December 31, 1995. In December of 1995,
C&F Mortgage Corporation was newly formed and had not had time to originate the
loans. At June 30, 1996, the Bank's loans net of unearned income and reserve for
loan losses, totals $124.4 million, an increase of 13.1% over the 1995 year-end
total of $110.0 million.
The Company's lending activities are a principal source of income. All
loans are attributable to domestic operations. Residential real estate loans,
both construction and permanent, represent the major portion of the Company's
loan portfolio.
Investment Securities
The investment securities portfolio plays a primary role in the
management of interest rate sensitivity of the Company and generates substantial
interest income. In addition, the portfolio serves as a source of liquidity and
is used as needed to meet collateral requirements.
The securities portfolio consists of two components, investment
securities held to maturity and securities available for sale. Securities are
classified as investment securities based on management's intent and the
Company's ability, at the time of purchase, to hold such securities to maturity.
These securities are carried at amortized cost. Securities which may be sold in
response to changes in market interest rates, changes in the securities'
prepayment risk, increases in loan demand, general liquidity needs, and other
similar factors are classified as available for sale and are carried at
estimated fair value.
At June 30, 1996, total investment securities were $88.3 million
compared to $100.6 for December 31, 1995. This decrease is a result of
securities not being reinvested as they mature. Securities of U.S. Government
agencies and corporations represent 46.8% of the total securities portfolio,
obligations of state and political subdivisions were 42.4%, U.S. Treasury
securities were 5.6%, investment-grade corporate bonds totaled .3% and preferred
stocks were 4.9% at March 31, 1996.
Deposits
The Company's predominate source of funds is depository accounts. The
Company's deposit base is comprised of demand deposits, savings and money market
accounts, and time deposits. The Company's deposits are provided by individuals
and businesses located within the communities served.
Deposits totaled $207.0 million at June 30, 1996, this reflects an increase
of 1.5% over year-end 1995.
Liquidity
Liquidity represents an institution's ability to meet present and future
financial obligations through either the sale or maturity of existing assets or
the acquisition of additional funds through liability management. Liquid assets
include cash, interest bearing deposits with banks, federal funds sold,
investment and loans maturing within one year. The Company's ability to obtain
deposits and purchase funds at favorable rates determines its liability
liquidity. As a result of the Company's management of liquid assets and the
ability to generate liquidity through liability funding, management believes
that the Company maintains overall liquidity which is sufficient to satisfy its
depositors' requirements and to meet customers' credit needs.
At June 30, 1996, cash, securities classified as available for sale and
federal funds sold were 11.9% of total earning assets compared to 11.6% at
December 31, 1995. Asset liquidity is also provided by managing the investment
maturities.
Addition resources of liquidity available to the Company include its
subsidiary Bank's capacity to borrow additional funds through an established
line of credit with a regional correspondent bank and the Federal Home Loan
Bank.
Capital Resources
The assessment of capital adequacy depends on a number of factors such as
asset quality, liquidity, earnings performance, and changing competitive
conditions and economic forces. The adequacy of the Company's capital is
reviewed by management on an ongoing basis. Management seeks to maintain a
capital structure that will assure an adequate level of capital to support
anticipated asset growth and to absorb potential losses.
The Company's capital position continues to exceed regulatory requirements.
The primary indicators relied on by bank regulators in measuring the capital
position are the Tier I capital, total risk-based capital, and leverage ratios.
Tier I capital consist of common and qualifying preferred shareholders' equity
less goodwill. Total capital consist of Tier I capital, qualifying subordinated
debt, and a portion of the allowance for loan losses. Risk-based capital ratios
are calculated with reference to risk-weighted assets. The Company's Tier I
capital ratio was 22.94 % at June 30, 1996, compared to 23.87% at December 31,
1995. The total capital ratio was 24.19% at June 30, 1996 compared to 25.12% at
December 31, 1995. These ratios are in excess of the mandated minimum
requirement of 4% and 8%, respectively.
Shareholders' equity reached $32.0 million at the end of the first quarter
of 1996 compared to $31.8 million and $29.7 million at December 31, 1995 and
March 31, 1995, respectively. The leverage ratio consists of Tier I capital
divided by quarterly average assets. At March 31, 1996, the Company's leverage
ratio was 11.3% compared to 12.4% at December 31, 1995. Each of these exceeds
the required minimum leverage ratio of 3%. The leverage ratio declined primarily
due to asset growth outpacing shareholders' equity growth.
New Accounting Pronouncements
SFAS No. 121 was issued in March, 1995, and requires that long-lived assets
and certain identifiable intangibles to be held and used by an entity are to be
reviewed for impairment whenever events or changes in circumstances indicate
that the carrying amount of an asset may not be recoverable. This pronouncement
was effective for fiscal years beginning after December 15, 1995, and its
adoption has had no material effect on the Company's financial statements.
SFAS No. 122, "Accounting for Mortgage Servicing Rights", was effective for
fiscal years beginning after December 15, 1995. This pronouncement specifies how
mortgage banking enterprises are to recognize rights to service mortgage loans
for others, however those servicing rights are acquired. As management intends
to sell substantially all loans originated by its mortgage corporation, the
adoption of this pronouncement has had no material effect on the Company's
financial statements.
In October, 1995, SFAS No. 123, "Accounting for Stock Based Compensation",
was issued and effective for fiscal years beginning after December 15, 1995.
SFAS No. 123 requires expanded disclosures of stock-based compensation
arrangements with employees and encourages (but does not require) compensation
cost to be measured based on the fair value of the equity instrument awarded.
Companies are permitted, however, to continue to apply APB Opinion No. 25, which
recognizes compensation cost based on the intrinsic value of the equity
instrument awarded. Management will continue to apply APB Opinion No. 25 to its
stock based compensation awards to employees.
Effects of Inflation
The effect of changing prices and financial institutions is typically
different from other industries as the Company's assets and liabilities are
monetary in nature. Interest rates are significantly impacted by inflation, but
neither the timing nor the magnitude of the changes are directly related to
price level indices. Impacts of inflation on interest rates, loan demands, and
deposits are reflected in the consolidated financial statements.
<PAGE>
PART II - OTHER INFORMATION
ITEM 1 - LEGAL PROCEEDINGS
There are no material pending legal proceedings to which the Company is
a party or of which the property of the Company is subject.
ITEM 6 - EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
Exhibit 27-Financial Data Schedule
(b) Reports on Form 8-K
The Company filed no report on Form 8-K for the quarter ended June
30, 1996.
<PAGE>
SIGNATURES
In accordance with the requirements of the Exchange Act, the registrant
caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.
C&F FINANCIAL CORPORATION
(Registrant)
Date August 13, 1996 /s/ Larry G. Dillon
------------------------------------- -------------------
Larry G. Dillon, President and
Chief Executive Officer
Date August 13, 1996 /s/ Brad E. Schwartz
------------------------------------- --------------------
Brad E. Schwartz, Treasurer
<TABLE> <S> <C>
<ARTICLE> 9
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> JUN-30-1996
<CASH> 8,397
<INT-BEARING-DEPOSITS> 2,128
<FED-FUNDS-SOLD> 0
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 16,997
<INVESTMENTS-CARRYING> 71,253
<INVESTMENTS-MARKET> 71,038
<LOANS> 124,423
<ALLOWANCE> (1,905)
<TOTAL-ASSETS> 252,740
<DEPOSITS> 206,977
<SHORT-TERM> 7,500
<LIABILITIES-OTHER> 4,988
<LONG-TERM> 0
0
0
<COMMON> 2,233
<OTHER-SE> 1,301
<TOTAL-LIABILITIES-AND-EQUITY> 252,740
<INTEREST-LOAN> 5,771
<INTEREST-INVEST> 1,854
<INTEREST-OTHER> 0
<INTEREST-TOTAL> 8,915
<INTEREST-DEPOSIT> 3,749
<INTEREST-EXPENSE> 3,826
<INTEREST-INCOME-NET> 5,089
<LOAN-LOSSES> 0
<SECURITIES-GAINS> (13)
<EXPENSE-OTHER> 5,314
<INCOME-PRETAX> 2,257
<INCOME-PRE-EXTRAORDINARY> 2,257
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,865
<EPS-PRIMARY> .84
<EPS-DILUTED> .84
<YIELD-ACTUAL> 0
<LOANS-NON> 0
<LOANS-PAST> 0
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 0
<CHARGE-OFFS> 0
<RECOVERIES> 0
<ALLOWANCE-CLOSE> 0
<ALLOWANCE-DOMESTIC> 0
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
