U.S. 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 ended June 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: 0-25284
BIG SKY BANCORP, INC.
---------------------
(Exact name of registrant as specified in its charter)
State of Delaware 81-0494188
- ----------------- ----------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
711 South First Street Hamilton, Mt 59840
- ------------------------------------ -------
(Address of principal executive office) (Zip Code)
Registrant's telephone number, including area code: (406) 363-4400
--------------
Not applicable
- --------------
(Former name, former address and former fiscal year, if changed since last
report)
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Sections 13 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 .
--- ---
Indicate the number of shares outstanding of the issuer's classes of common
stock, as of the latest practicable date.
Class Outstanding July 31, 1998
------- -------------------------
Common Stock, par value $.01 323,721
per share
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FORM 10-QSB
FOR THE QUARTER ENDED JUNE 30, 1998
INDEX
PART I - Financial Information Page Number
Consolidated Statements of Financial Condition 1
Consolidated Statements of Income 2
Consolidated Statements of Cash Flows 3-4
Notes to Financial Statements 5
Management's Discussion and Analysis of Consolidated
Financial Statements 6-11
PART II - Other Information 12
SIGNATURES 13
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PART I - FINANCIAL INFORMATION
BIG SKY BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
ASSETS JUNE 30, 1998 MARCH 31, 1998
- ------ ------------- --------------
( Unaudited )
Cash ( including interest-bearing accounts
of $ 7,656,000 and $ 5,820,000 ) $ 9,066,000 $ 7,029,000
Investment securities available for sale, at
fair value ( cost $ 142,000 and $ 141,000 ) 546,000 547,000
Mortgage-backed securities available for sale,
at fair value (cost $7,436,000 and $7,402,000) 7,585,000 7,651,000
Investment securities held to maturity, at
amortized cost (fair value $8,305,000
and $7,810,000) 8,324,000 7,825,000
Mortgage-backed securities held to maturity,
at amortized cost (fair value $437,000 and
$484,000) 414,000 458,000
Loans receivable, net 34,288,000 35,042,000
Accrued interest receivable 390,000 320,000
Real estate owned --- ---
Investment in Federal Home Loan Bank Stock 2,051,000 2,012,000
Premises and equipment 1,235,000 1,255,000
Prepaid expenses and other assets 124,000 129,000
------------- -------------
TOTAL ASSETS $ 64,023,000 $ 62,268,000
============= =============
LIABILITIES AND STOCKHOLDERS' EQUITY
- ------------------------------------
LIABILITIES
Deposits $ 49,214,000 $ 47,770,000
Advances from Federal Home Loan Bank of Seattle 5,000,000 5,000,000
Advances from borrowers for taxes and insurance 413,000 497,000
Accrued expenses and other liabilities 585,000 314,000
Deferred taxes 749,000 740,000
------------- -------------
TOTAL LIABILITIES 55,961,000 54,321,000
------------- -------------
STOCKHOLDERS' EQUITY
Common stock, ($0.01 par value per share;
Authorized 1,500,000 shares; Issued 323,721
and 308,721 shares; outstanding, 308,721 shares 3,000 3,000
Additional paid - in capital 922,000 922,000
Unrealized appreciation on securities
available for sale, net of tax 339,000 325,000
Retained earnings 7,070,000 6,984,000
Unearned compensation - MRDP (272,000) (287,000)
------------- -------------
TOTAL STOCKHOLDERS' EQUITY 8,062,000 7,947,000
------------- -------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 64,023,000 $ 62,268,000
============= =============
1
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BIG SKY BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME
THREE MONTHS ENDED THREE MONTHS ENDED
JUNE 30, 1998 JUNE 30, 1997
------------- -------------
( Unaudited )
INTEREST INCOME:
Loans receivable $ 801,000 $ 805,000
Investments securities 129,000 211,000
Mortgage-backed securities 136,000 139,000
FHLB stock dividends and other 120,000 57,000
----------- -------------
Total interest income 1,186,000 1,212,000
INTEREST EXPENSE 656,000 649,000
----------- -------------
Net interest income 530,000 563,000
Provision for loan losses (7,000) (8,000)
----------- -------------
Net interest income after provision
for loan losses 523,000 555,000
----------- -------------
OTHER INCOME:
Rental income 20,000 32,000
Loan fees and service charges 15,000 19,000
Other 4,000 1,000
----------- -------------
Total other income 39,000 52,000
----------- -------------
OTHER EXPENSES:
Salaries and employee benefits 189,000 194,000
Occupancy 44,000 50,000
FDIC insurance 13,000 13,000
Outside services 25,000 26,000
Advertising 12,000 10,000
Other expense 139,000 66,000
----------- -------------
Total other expense 422,000 359,000
----------- -------------
Income before income taxes 140,000 248,000
Income tax expense 54,000 101,000
----------- -------------
NET INCOME $ 86,000 $ 147,000
=========== =============
NET INCOME PER SHARE:
Basic $ .28 $ .48
=========== =============
Diluted $ .25 $ .44
=========== =============
2
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BIG SKY BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS
THREE MONTHS ENDED THREE MONTHS ENDED
JUNE 30, 1998 JUNE 30, 1997
------------- -------------
( Unaudited )
OPERATING ACTIVITIES:
Net income $ 86,000 $ 147,000
ADJUSTMENTS TO RECONCILE NET INCOME TO NET
CASH PROVIDED BY OPERATING ACTIVITIES:
Depreciation and amortization 20,000 21,000
Provision for loan losses 7,000 8,000
Federal Home Loan Bank stock dividend (39,000) (35,000)
Cash provided (used) by changes in
operating assets and liabilities:
Accrued interest receivable (70,000) (154,000)
Prepaid expenses and other assets 5,000 (5,000)
Accrued expenses and other liabilities 271,000 (11,000)
Deferred taxes 9,000 99,000
Deferred loan fees, net (16,000) 3,000
---------- ----------
NET CASH PROVIDED BY OPERATING ACTIVITIES 273,000 73,000
INVESTING ACTIVITIES:
Principal repayments on loans 2,125,000 2,237,000
Loan originations (1,356,000) (2,267,000)
Principal repayments on mortgage-backed
securities available for sale 91,000 75,000
Principal repayments on mortgage-backed
securities held to maturity 46,000 26,000
Proceeds from maturity of investment
securities held to maturity -- 450,000
Purchase of investment securities held
to maturity (500,000) (1,000,000)
Purchase of investment securities
available for sale (2,000) --
---------- ----------
Net cash provided by investing
activities 404,000 (479,000)
---------- ----------
3
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BIG SKY BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued)
THREE MONTHS ENDED THREE MONTHS ENDED
JUNE 30, 1998 JUNE 30, 1997
------------- -------------
( Unaudited )
FINANCING ACTIVITIES:
Net increase (decrease) in deposit
accounts due on demand 438,000 (675,000)
Net increase (decrease) in certificate
accounts 1,006,000 (458,000)
Net decrease in advances from borrowers (84,000) (113,000)
---------- ----------
Net cash used in financing activities 1,360,000 (1,246,000)
---------- ----------
NET INCREASE (DECREASE) IN CASH 2,037,000 (1,652,000)
CASH, BEGINNING OF PERIOD 7,029,000 3,017,000
---------- ----------
CASH, END OF PERIOD $9,066,000 $1,365,000
========== ==========
SUPPLEMENTAL SCHEDULE OF NONCASH
INVESTING AND FINANCING ACTIVITIES:
Fair value adjustment to securities
available for sale 553,000 349,000
Income tax effect related to fair value
adjustment (214,000) (136,000)
Cash paid for:
Interest 661,000 653,000
Income taxes 10,000 44,000
4
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BIG SKY BANCORP, INC. AND SUBSIDIARY
Notes to Consolidated Financial Statements
(Unaudited)
1. Basis of Presentation
The information contained in the financial statements is unaudited. In
the opinion of management, the financial statements contain all
adjustments (none of which were other than recurring entries) necessary
for a fair statement of the results of operations for the interim
period. The results of operations for the three months ended June 30,
1998 are not necessarily indicative of the results which may be expected
for the entire fiscal year.
2. Net Income Per Share
Basic net income per share is based on net income and the weighted
average number of shares outstanding during the period. The dilutive
effect of outstanding stock options is included in diluted earnings per
share.
3. Principles of Consolidation
The accompanying consolidated financial statements include the accounts
of the Corporation and its wholly-owned subsidiary, First Federal Savings
and Loan Association of Montana ("Association"). Significant
intercompany balances and transactions have been eliminated in the
consolidation.
5
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MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL STATEMENTS
Special Note Regarding Forward-Looking Statements
This report contains certain "forward-looking statements." The Company
desires to take advantage of the "safe harbor" provisions of the Private
Securities Litigation Reform Act of 1995 and is including this statement for
the express purpose of availing itself of the protections of such safe harbor
with respect to all of such forward-looking statements, which are included in
Management's Discussion and Analysis, describe future plans or strategies and
include the Company's expectations of future financial results. The words
"believe," "expect," "anticipate," "estimate," "project," and similar
expressions identify forward-looking statements. The Company's ability to
predict results or the effect of future plans or strategies is inherently
uncertain. Factors which could affect actual results include interest rate
trends, the general economic climate in the Company's market area and the
country as a whole, loan delinquency rates, and changes in federal and state
regulation. These factors should be considered in evaluating the
forward-looking statements, and undue reliance should not be placed on such
statements.
Merger Announcement
On April 23, 1998, a definitive agreement to merge was executed between Big
Sky Bancorp, Inc. ("Big Sky"), and Sterling Financial Corporation
("Sterling"), of Spokane, Washington.
Under the terms of the agreement, Sterling will acquire Big Sky and its
subsidiary, First Federal Savings and Loan Association of Montana ("First
Federal"). Big Sky will be merged into Sterling, and First Federal will be
merged into Sterling's subsidiary, Sterling Savings Association.
Sterling will issue, subject to exercise of Big Sky options, up to 497,545
shares of common stock in exchange for all of the issued and outstanding Big
Sky stock. The merger will be structured as a tax-free reorganization and
accounted for as a pooling of interests.
General
Total assets increased by $ 1,755,000, or 2.82%, to $ 64,023,000 at June 30,
1998 as compared to $ 62,268,000 at March 31, 1998.
Deposits increased by $ 1,444,000, or 3.02%, to $ 49,214,000 at June 30, 1998
as compared to $ 47,770,000 at March 31, 1998.
Net loans decreased by $ 754,000, or 2.15%, to $ 34,288,000 at June 30, 1998
as compared to $ 35,042,000 at March 31, 1998.
6
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Investments and mortgage-backed securities increased by $ 338,000, or 2.35%,
to $ 16,869,000 at June 30, 1998, as compared to $ 16,481,000 at March 31,
1998.
Cash increased by $ 2,037,000, or 28.98%, to $ 9,066,000 at June 30, 1998, as
compared to $ 7,029,000 at March 31, 1998. The increase in cash was primarily
the result of the increase in deposits and the decrease in loans.
Capital Position
The Corporation's capital increased by $ 115,000, or 1.45%, to
$ 8,062,000 at June 30, 1998, from $ 7,947,000 at March 31, 1998.
The Association's capital position relative to its minimum capital
requirements under the Financial institution's Reform, Recovery and
Enforcement Act of 1989 (FIRREA) at June 30, 1998 was as follows:
Amount Percentage of
Assets
----------- ------
Tangible capital..................... $ 7,557,000 11.9 %
Minimum tangible capital requirement. 952,000 1.5 %
----------- ----
Excess............................... $ 6,605,000 10.4 %
=========== ====
Core capital......................... $ 7,557,000 11.9 %
Minimum core capital requirement..... 1,904,000 3.0 %
----------- ----
Excess............................... $ 5,653,000 8.9 %
=========== ====
Risk-based capital................... $ 7,890,000 29.9 %
Minimum risk-based capital requirement. 2,113,000 8.0 %
----------- ----
Excess................................. $ 5,777,000 21.9 %
=========== ====
Liquidity
The Company's liquidity ratio increased to 21.57% at June 30, 1998, from
17.98% at March 31, 1998. The Company is required to maintain cash and
certain investment securities in an amount equal to 4% of its deposit accounts
and short-term borrowings.
Allowance for Loan Losses
The allowance for loan loss reserves was $ 537,000 at June 30, 1998, as
compared to $ 534,000 at March 31, 1998. The allowance is based upon
management's consideration of current and anticipated economic conditions
which may affect the ability of the borrowers in the loan portfolio to repay
the loans. Management also reviews individual loans for which full
collectibility may not be reasonably assured and considers, among other
matters, the
7
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estimated net realizable value of the underlying collateral. The increase in
the allowance for potential loan losses was implemented by management as a
prudent risk-management strategy. Management does not believe that any
significant changes in portfolio risk have occurred during the three month
period ended June 30, 1998, as compared to March 31, 1998.
Year 2000 Compliance
As with other organizations, the data processing programs and typical office
equipment such as computers, telephone, telecopiers, HVAC controls, alarm
systems and elevators were originally designed to recognize calendar years by
their last two digits. Software and hardware programmed to recognize only two
digit fields may not work properly with dates beyond 1999, and will either
need to be replaced or reprogrammed to function properly after January 1,
2000.
The Company has adopted a Year 2000 ("Y2K") Policy and Action Plan to address
the issue. The plan provides for four phases, (1) Awareness, (2) Assessment,
(3) Validation and (4) Implementation. The Data Processing Review and
Oversight Committee has been designated to work with the Y2K project officer
to successfully complete the project. The President is designated as the Y2K
project officer. The Board of Directors will be kept informed of the status
of the project and of all problems discovered throughout the process. The
Awareness and Assessment phases are virtually complete, and emphasis will now
be placed on the Validation and Implementation phases.
Data processing for the Company is provided by a third party service bureau.
Software provided by the service bureau is used for such applications as
general ledger, deposit, loan, accounts payable and payroll, among others.
The service bureau has stated that it has been preparing for the Y2K since the
early 1980's, and writes all of its code to comply with the requirements of
having the century marker as part of the application routines. The service
bureau has stated that it is actively engaged in finishing its preparations
for Y2K compliance. A committee has been formed and monthly updates have
begun to keep its users informed of its progress. The awareness and
assessment phases are now virtually complete. The renovation phase is well on
its way, and the service bureau emphasis will now be on the validation phase.
The Company believes that the Y2K problem will not pose significant
operational problems and is not anticipated to be material to its financial
position or results of operations in any given year.
8
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COMPARISON OF THE THREE MONTHS ENDED
JUNE 30, 1998 TO THE THREE MONTHS ENDED JUNE 30, 1997
General
Total assets increased by $ 1,398,000, or 2.23%, to $ 64,023,000 at June 30,
1998, from $ 62,625,000 at June 30, 1997.
Cash increased by $ 7,701,000, or 564.18%, to $ 9,066,000 at June 30, 1998, as
compared to $ 1,365,000 at June 30, 1997. The increase in cash was primarily
the result of an increase in deposits and a decrease in loans and securities.
Due to the low interest rate environment and the flat yield curve during the
quarter ended June 30, 1998, the Company elected to temporarily increase its
cash position rather than incur the extension risk inherent in longer term
investments, which would produce only slightly higher yields than otherwise
available in liquid or very short term investments.
Investments and mortgage-backed securities decreased by $ 5,309,000, or
23.94%, to $ 16,869,000 at June 30, 1998, from $ 22,178,000 at June 30, 1997.
Net loans decreased by $ 1,007,000, or 2.85%, to $ 34,288,000 at June 30,
1998, from $ 35,295,000 at June 30, 1997.
Total deposits increased by $ 275,000, or .56%, to $ 49,214,000 at June 30,
1998, from $ 48,939,000 at June 30, 1997.
At June 30, 1998, advances from the Federal Home Loan Bank of Seattle ("FHLB")
totalled $ 5,000,000, unchanged from June 30, 1997.
The Corporation's capital increased by $ 677,000, or 9.17%, to $ 8,062,000 at
June 30, 1998, from $ 7,385,000 at June 30, 1997.
The Company did not have any real estate owned as a result of foreclosure at
June 30, 1998 or June 30, 1997.
Net Income
Net income for the three months ended June 30, 1998 decreased by
$ 61,000, or 41.50%, to $ 86,000, from $ 147,000 for the three months ended
June 30, 1997.
A principal reason for the decrease in net income was the increase in
consulting and legal fees incurred in connection with the Company's proposed
merger with Sterling Financial Corporation.
Basic earnings per share decreased by $ .20, or 41.70%, to $ .28 for the three
months ended June 30, 1998, as compared to $ .48 for the three months ended
June 30, 1997.
9
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Diluted earnings per share decreased by $ .19, or 43.18%, to $ .25 for the
three months ended June 30, 1998, as compared to $ .44 for the three month
period ended June 30, 1997.
Total interest income for the three month period ending June 30, 1998
decreased by $ 26,000, or 2.15%, to $ 1,186,000, as compared to $ 1,212,000
for the three month period ending June 30, 1997.
Interest and fees on loans decreased by $ 4,000, or .50%, to $ 801,000 for the
three month period ending June 30, 1998, as compared to $ 805,000 for the
three month period ending June 30, 1997.
Interest on investments decreased by $ 82,000, or 38.86%, to $ 129,000 for the
three month period ending June 30, 1998, as compared to $ 211,000 for the same
period last year.
Interest on mortgage-backed securities decreased by $ 3,000, or 2.16%, to $
136,000 for the three month period ending June 30, 1998, as compared to $
139,000 for the three month period ending June 30, 1997.
Other interest and dividends increased by $ 63,000, or 110.53%, to
$ 120,000 for the three month period ending June 30, 1998, as compared to $
57,000 for the three month period ending June 30, 1997.
Total other income decreased by $ 13,000, or 25.00%, to $ 39,000 for the three
month period ending June 30, 1998, as compared to $ 52,000 for the three month
period ending June 30, 1997.
Rental income decreased by $ 12,000, or 37.50%, to $ 20,000 for the three
month period ending June 30, 1998, as compared to $ 32,000 for the three month
period ending June 30, 1997.
Loan fees and service charges decreased by $ 4,000, or 21.05%, to $ 15,000 for
the quarter ending June 30, 1998, as compared to $ 19,000 for the quarter
ending June 30, 1997.
Interest expense increased by $ 7,000, or 1.08%, to $ 656,000 for the three
month period ending June 30, 1998, as compared to $ 649,000 for the three
month period ending June 30, 1997.
Total other expense increased by $ 63,000, or 17.55%, to $ 422,000 for the
quarter ending June 30, 1998, from $ 359,000 for the comparable period in
1997.
Salary and employee benefit expense decreased by $ 5,000, or 2.58%, to
$189,000 for the three month period ended June 30, 1998, as compared to
$194,000 for the comparable period last year.
Occupancy expense decreased by $ 6,000, or 12.00%, to $ 44,000 for the three
month period ended June 30, 1998, as compared to $ 50,000 for the three month
period ended June 30, 1997.
10
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FDIC/SAIF insurance expense remained the same at $ 13,000 for each of the
quarters ending June 30, 1998 and June 30, 1997.
Outside services expense decreased by $ 1,000, or 3.85%, to $ 25,000 for the
three month period ending June 30, 1998, as compared to $ 26,000 for the three
month period ending June 30, 1997.
Advertising expense increased by $ 2,000, or 20.00%, to $ 12,000 for the
quarter ending June 30, 1998, as compared to $ 10,000 for the quarter ending
June 30, 1997.
Other expense increased by $ 73,000, or 110.61%, to $ 139,000 during the three
month period ended June 30, 1998, as compared to $ 66,000 for the three month
period ended June 30, 1997. The increase was primarily due to $ 68,000 of
additional expense incurred for consulting and legal fees related to the
proposed merger with Sterling Financial Corporation.
Income tax expense decreased by $ 108,000, or 43.55%, to $ 54,000 for the
three month period ended June 30, 1998, as compared to $ 101,000 for the three
month period ending June 30, 1997.
Net Interest Income
Net interest income decreased by $ 33,000, or 5.86%, to $ 530,000 for the
three month period ending June 30, 1998, from $ 563,000 for the three month
period ending June 30, 1997.
The cost of funds increased by 16 basis points, to 4.94% at June 30, 1998,
from 4.78% at June 30, 1997. The yield on earning assets decreased by 18
basis points, to 7.51% at June 30, 1998, from 7.69% at June 30, 1997. As a
result, interest spread decreased by 34 basis points, to 2.57% at June 30,
1998, from 2.91% at June 30, 1997.
Average net interest margin decreased by 28 basis points, to 3.17% for the
three month period ending June 30, 1998, from 3.45% for the three month period
ending June 30, 1997.
Provision for Loan Losses
Provision for loan losses was $ 7,000 for the three month period ending June
30, 1998, as compared to $ 8,000 for the three month period ending June 30,
1997.
11
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PART II - Other Information
Item 1 - Legal Proceedings
Periodically, there have been various claims and lawsuits involving the
Association, such as claims to enforce liens, condemnation proceedings on
properties in which the Association holds security interests, claims involving
the making and servicing of real property loans and other issues incident to
the Association's business. In the opinion of management and the
Association's legal counsel, no significant loss is expected from any of such
pending claims or lawsuits. Aside from such pending claims and lawsuits which
are incident to the conduct of the Association's ordinary business, the
Association is not a party to any material pending legal proceedings.
Item 2 - Changes in Securities
None.
Item 3 - Default Upon Senior Securities
None.
Item 4 - Submission of Matters to a Vote of Security Holders
None.
Item 5 - Other Information
None.
Item 6 - Exhibits and Reports on Form 8-K.
(a) Exhibits: none
(b) Reports on Form 8-K: A report on Form 8-K was filed on May 1, 1998,
announcing the execution of a definitive merger agreement between Big Sky
Bancorp, Inc., and Sterling Financial Corporation pursuant, to which Big
Sky will be merged into Sterling and Big Sky's wholly-owned subsidiary,
First Federal Savings and Loan Association of Montana, will be merged
into Sterling's wholly-owned subsidiary, Sterling Savings Association.
12
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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.
Big Sky Bancorp, Inc.
---------------------
(Registrant)
DATE: August 10, 1998 BY: /s/Michael E. McKee
----------------------------------
Michael E. McKee
President
(Duly Authorized Officer)
BY: /s/Ernest M. Kwiatkowski
----------------------------------
Ernest M. Kwiatkowski
Vice President - Treasurer
(Principal Financial Officer)
13
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<TABLE> <S> <C>
<ARTICLE> 9
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> MAR-31-1998
<PERIOD-END> JUN-30-1998
<CASH> 9066000
<INT-BEARING-DEPOSITS> 7656000
<FED-FUNDS-SOLD> 0
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 8131000
<INVESTMENTS-CARRYING> 8738000
<INVESTMENTS-MARKET> 8742000
<LOANS> 34288000
<ALLOWANCE> 537000
<TOTAL-ASSETS> 64023000
<DEPOSITS> 49214000
<SHORT-TERM> 0
<LIABILITIES-OTHER> 1747000
<LONG-TERM> 5000000
0
0
<COMMON> 3000
<OTHER-SE> 8059000
<TOTAL-LIABILITIES-AND-EQUITY> 64023000
<INTEREST-LOAN> 801000
<INTEREST-INVEST> 265000
<INTEREST-OTHER> 120000
<INTEREST-TOTAL> 1186000
<INTEREST-DEPOSIT> 588000
<INTEREST-EXPENSE> 656000
<INTEREST-INCOME-NET> 530000
<LOAN-LOSSES> 7000
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 422000
<INCOME-PRETAX> 140000
<INCOME-PRE-EXTRAORDINARY> 140000
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 86000
<EPS-PRIMARY> 0.28
<EPS-DILUTED> 0.25
<YIELD-ACTUAL> 7.51
<LOANS-NON> 0
<LOANS-PAST> 0
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 534000
<CHARGE-OFFS> 5000
<RECOVERIES> 1000
<ALLOWANCE-CLOSE> 537000
<ALLOWANCE-DOMESTIC> 537000
<ALLOWANCE-FOREIGN> 0
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</TABLE>
