SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
[X] Quarterly Report Pursuant to Section 13 or 15 (d) of the Securities
Exchange Act of 1934
FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 1997
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 0-11026
SOUTHWEST NATIONAL CORPORATION
(Exact name of registrant as specified in its charter)
PENNSYLVANIA 25-1409649
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
111 SOUTH MAIN STREET
GREENSBURG, PENNSYLVANIA 15601
(Address of principal executive offices)
(Zip Code)
Registrant's telephone number, including area code: (412) 834-2310
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 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.
Indicate the number of shares outstanding of each of the issuer's common
stock, as of the latest practicable date.
Class Outstanding at November 12, 1997
Common Stock, $2.50 Par Value 3,064,910
<PAGE>
<TABLE>
SOUTHWEST NATIONAL CORPORATION
FORM 10-Q INDEX
FOR QUARTER ENDED SEPTEMBER 30, 1997
<CAPTION>
PAGE
<S> <C> <C>
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements (Unaudited)
Southwest National Corporation and Subsidiary
Consolidated Statement of Income 1
Consolidated Balance Sheet 2
Consolidated Statement of Changes in Shareholders' Equity 3
Consolidated Statement of Cash Flows 4
Notes to Consolidated Financial Statements 5
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations 6-8
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K 8
SIGNATURES 9
<PAGE>
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements (Unaudited)
</TABLE>
<TABLE>
SOUTHWEST NATIONAL CORPORATION AND SUBSIDIARY
CONSOLIDATED STATEMENT OF INCOME
(in thousands, except per share amounts)
<CAPTION>
THREE MONTHS NINE MONTHS
ENDED SEPTEMBER 30, ENDED SEPTEMBER 30,
1997 1996 1997 1996
- ---- ---- ---- ----
<S> <C> <C> <C> <C>
INTEREST INCOME
$10,813 $9,821 Interest and fees on loans $31,712 $28,712
Interest on money market investments:
1 0 Interest bearing deposits with banks 5 2
248 292 Federal funds sold 609 949
Interest and dividends on investment
securities: U.S. Treasury securities
and obligations of U.S. government
1,730 1,905 agencies and corporations 5,307 5,594
Obligations of states and political
270 301 subdivisions 845 861
817 1,006 Collateralized mortgage obligations 2,585 3,154
46 43 Other securities 129 123
- --------------- ---------------
13,925 13,368 Total interest income 41,192 39,395
INTEREST EXPENSE
5,395 5,099 Interest on deposits 15,770 15,307
Interest on Federal funds purchased
and securities sold under agreements
56 70 to repurchase 223 160
Interest on Federal Home Loan Bank
75 35 advances 196 112
- --------------- ---------------
5,526 5,204 Total interest expense 16,189 15,579
- --------------- ---------------
8,399 8164 Net interest income 25,003 23,816
668 450 Provision for possible loan losses 1,763 1,350
- --------------- ---------------
Net interest income after
provision for possible loan
7,731 7,714 losses 23,240 22,466
NONINTEREST INCOME
445 400 Trust income 1,272 1,163
700 584 Service charges on deposit accounts 1,939 1,677
Other service charges, commissions
142 174 and fees 470 500
155 86 Other income 393 466
- --------------- ---------------
1,442 1,244 Total noninterest income 4,074 3,806
NONINTEREST EXPENSE
2,780 2,707 Salaries and employee benefits 8,405 8,140
468 475 Net occupancy expense 1,452 1,482
Equipment expenses and data
874 786 processing fees 2,583 2,402
177 165 Pennsylvania shares tax 532 494
24 179 FDIC insurance expense 72 215
1,442 1,173 Other expenses 4,003 3,599
- --------------- ---------------
5,765 5,485 Total noninterest expense 17,047 16,332
- --------------- ---------------
3,408 3,473 Income before income taxes 10,267 9,940
1,022 1,045 Income taxes 3,077 2,975
- --------------- ---------------
$2,386 $2,428 NET INCOME $7,190 $6,965
=============== ===============
Per share
$0.77 $0.76 Net income $2.32 $2.19
0.32 0.30 Cash dividends 0.96 0.90
3,072 3,180 Average common shares outstanding 3,096 3,181
<FN>
See accompanying notes to consolidated financial statements
</FN>
</TABLE>
<PAGE> 1
<TABLE>
SOUTHWEST NATIONAL CORPORATION AND SUBSIDIARY
CONSOLIDATED BALANCE SHEET
(in thousands)
<CAPTION>
September 30, December 31, September 30,
1997 1996 1996
--------- ------------ --------
<S> <C> <C> <C>
ASSETS
Cash and due from banks $21,859 $26,521 $26,712
Money market investments:
Int. bearing deposits with banks 21 82 87
Federal funds sold 6,100 28,800 9,200
-----------------------------------
Total money market investments: 6,121 28,882 9,287
Investment securities:
Securities available for sale 134,632 135,183 146,084
Securities held to maturity
(market values: $53,268;
$61,609 and $64,133) 53,541 62,067 64,916
-----------------------------------
Total investment securities 188,173 197,250 211,000
Loans, net of unearned income of
$34; $138 and $201 509,133 489,188 471,564
Less: reserve for possible
loan losses (5,851) (5,910) (5,947)
-----------------------------------
Loans, net 503,282 483,278 465,617
Bank premises and equipment 8,594 8,089 8,151
Other assets 14,878 11,338 11,242
-----------------------------------
Total assets $742,907 $755,358 $732,009
===================================
LIABILITIES
Deposits
Noninterest bearing demand $110,326 $105,202 $104,346
NOW accounts 33,512 55,232 54,577
Savings 242,112 239,794 238,816
Time 259,785 251,100 242,685
-----------------------------------
Total deposits 645,735 651,328 640,424
Securities sold under agreements
to repurchase 5,237 6,811 5,542
Federal Home Loan Bank borrowings 5,000 11,907 1,870
Other liabilities 5,119 5,148 4,554
-----------------------------------
Total liabilities 661,091 675,194 652,390
SHAREHOLDERS EQUITY
Common stock 7,952 7,952 7,952
Surplus 31,760 31,760 31,760
Retained earnings 46,350 42,132 40,494
Treasury stock, at cost (4,745) (1,800) (135)
Net unrealized gain (loss) on
securities available for sale 499 120 (452)
----------------------------------
Total shareholders' equity 81,816 80,164 79,619
----------------------------------
Total liabilities and
shareholders' equity $742,907 $755,358 $732.009
===================================
<FN>
See accompanying notes to consolidated financial statements.
</FN>
</TABLE>
<PAGE 2>
<TABLE>
SOUTHWEST NATIONAL CORPORATION AND SUBSIDIARY
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
(in thousands)
<CAPTION>
Unrealized
gain (loss)
on securities Total
Common Retained Treasury available shareholders'
stock Surplus earnings stock for sale equity
------ ------- ------- --------- ------------ -------------
<S> <C> <C> <C> <C> <C> <C>
Balance at January 1, 1996 $7,952 $31,760 $36,392 -- $1,106 $77,210
Net income -- -- 6,965 -- -- 6,965
Cash dividends -- -- (2,863) -- -- (2,863)
Purchase of treasury stock -- -- -- (135) -- (135)
Net unrealized loss on
securities available for sale -- -- -- -- (1,558) (1,558)
----------------------------------------------------------------------------
Balance at September 30, 1996 $7,952 $31,760 $40,494 ($135) ($452) $79,619
============================================================================
Balance at January 1, 1997 $7,952 $31,760 $42,132 ($1,800) $120 80,164
Net income -- -- 7,190 -- -- 7,190
Cash dividends -- -- (2,972) -- -- (2,972)
Purchase of treasury stock -- -- -- (2,945) -- (2,945)
Net unrealized loss on
securities available for sale -- -- -- -- 379 379
----------------------------------------------------------------------------
Balance at September 30, 1997 $7,952 $31,760 $46,350 ($4,745) $499 $81,816
============================================================================
<FN>
See accompanying notes to consolidated financial statements
</FN>
</TABLE>
<PAGE 3>
<TABLE>
SOUTHWEST NATIONAL CORPORATION AND SUBSIDIARY
CONSOLIDATED STATEMENT OF CASH FLOWS
(in thousands)
<CAPTION>
Nine months
ended September 30,
1997 1996
---- ----
<S> <C> <C>
Cash flows from operating activities:
Net income $7,190 $6,965
Adjustments to reconcile net income to net
cash from operating activities:
Depreciation 946 915
Provision for loan losses 1,763 1,350
Decrease from net interest receivable/payable 333 30
Increase (decrease) in other assets (3,300) 26
Net loan charge-offs (1,822) (1,054)
Net increase from other operating activities 1,004 909
-------- -------
Net cash from operating activities 6,114 9,141
Cash flows from investing activities:
Proceeds from sales and maturities of inv.
securities (available for sale) 52,652 37,005
Purchase of investment securities
(available for sale) (51,416) (45,417)
Proceeds from maturities of inv.
securities (held to maturity) 8,528 7,065
Purchase of investment securities (held to maturity) 0 0
Net increase in loans made to customers (21,860) (24,262)
Net property and equipment expenditures (1,451) (800)
-------- -------
Net cash used for investing activities (13,547) (26,409)
Cash flows from financing activities:
Net increase (decrease) in deposits (5,593) 16,639
Net increase (decrease) in federal funds
purchased and securities sold under
agreements to repurchase (1,574) 2,098
Proceeds from Federal Home Loan Bank advances 5,000 0
Repayment of Federal Home Loan Bank advances (11,907) (34)
Dividends paid (2,971) (2,863)
Purchase of treasury stock (2,945) (135)
-------- -------
Net cash from financing activities (19,990) 15,705
-------- -------
Net change in cash and cash equivalents ($27,423) ($1,563)
========= =======
Cash and cash equivalents at beginning of period $55,403 $37,562
Cash and cash equivalents at end of period 27,980 35,999
------- -------
Net change in cash and cash equivalents ($27,423) ($1,563)
========= ========
Cash paid during the period for:
Interest $10,761 $10,776
Income taxes 3,197 3,157
<FN>
<F1>Transfers from loans to other real estate owned and other repossessions totaled $1.579 million and
$903 thousand in 1997 and 1996, respectively.
<F2>The Corporation has defined cash and cash equivalents as cash and due from banks, certain interest
bearing deposits with banks, and federal funds sold with an original maturity of less than three months.
<F3>See accompanying notes to consolidated financial statements.
</FN>
</TABLE>
<PAGE> 4
SOUTHWEST NATIONAL CORPORATION
AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Significant accounting policies have not changed since the last
reporting period.
BASIS OF PRESENTATION
The accompanying unaudited consolidated financial statements of
Southwest National Corporation (the Corporation) include the accounts of
the Corporation and its wholly-owned subsidiary, Southwest National Bank
of Pennsylvania (the Bank). All significant intercompany accounts and
transactions have been eliminated in the consolidated financial
statements. Certain items previously reported have been reclassified to
conform with the current year's classifications. In the opinion of
management, all normal recurring adjustments necessary for fair
presentation of the financial position and results of operations for the
periods have been included.
2. INVESTMENT SECURITIES
Investment securities are classified as follows: debt securities
that the Corporation has the positive intent and ability to hold to
maturity are classified as securities held to maturity and reported at
amortized cost; debt and equity securities bought and held principally
for the purpose of selling them in the near term are classified as
trading securities and reported at fair value, with unrealized gains and
losses included in the current period earnings; or debt and equity
securities not classified as either securities held to maturity or
trading securities are classified as securities available for sale and
reported at fair value, with unrealized gains and losses reported as a
separate component of shareholders' equity. A $499,000, net of tax,
unrealized gain on securities classified as available for sale at
September 30, 1997, was recorded as a separate component of
shareholders' equity.
<PAGE> 5
PART I. FINANCIAL INFORMATION
(continued)
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations.
FIRST NINE MONTHS OF 1997 COMPARED TO FIRST NINE MONTHS OF 1996
Net income for the first nine months of 1997 advanced to $7,190,000
compared to $6,965,000 for the comparable period in 1996, a $225,000
(3.2%) rise. Earnings per share were $2.32 in 1997 compared to $2.19 in
1996, a $0.13 (5.9%) increase. Earnings were fueled by the rise in net
interest income, up $1,187,000 (5.0%) and improved noninterest income up
$268,000 (7.0%). A higher provision for loan losses up $413,000 (30.6%)
and increased noninterest expense up $715,000 (4.4%) partially offset
those advances.
Net interest income on a fully taxable equivalent basis increased
to $25,637,000 in 1997 from $24,472,000 a $1,165,000 (4.8%) rise
compared to 1996. Excluding the taxable equivalent adjustment, net
interest income climbed $1,187,000 (5.0%) from $23,816,000 in 1996 to
$25,003,000 in 1997. The net interest margin grew eight basis points to
4.82% in 1997 compared to the 4.74% achieved in 1996. The improvement
in the margin is due principally to the continued shifting in earning
asset mix towards loans (up $45,503,000 or 10.1%) from other earning
asset categories. Average assets in total also grew for the period
reaching $709,140,000 up $19,881,000 (2.9%).
The provision for loan losses increased $413,000 (30.6%) compared
to last year. The rise was primarily the result of increased charge-offs
in the indirect auto portfolio. This provision in no way reflects the credit
quality or performance of the remainder of the loan portfolio which continues
to perform satisfactorily.
Noninterest income climbed $268,000 (7.0%) compared to the first
nine months of 1996. Trust income rose $109,000 (9.4%) due to an
increased level of fees generated in the personal trust sector. Service
charges on deposit accounts jumped $262,000 (15.6%) period to period
due to changes in the fee structure and enhanced collection efforts in
the retail sector. Only partially offsetting these increases were
declines of $30,000 (6.0%) and $73,000 (15.7%) in other service charges,
commissions and fees and other income, respectively.
Noninterest expense rose $715,000 (4.4%) to $17,047,000 for the
first nine months of 1997. Salaries and employee benefits increased
$265,000 (3.3%) due to normal merit increases. Equipment expenses and
data processing fees rose $181,000 (7.5%) due primarily to costs
associated with the Bank's new debit card product (Mastermoney). FDIC
insurance expense dropped $143,000 (66.5%) as a result of the one-time
assessment paid in September 1996 to recapitalize the Savings
Association Insurance Fund (SAIF). Other expenses rose $404,000
(11.2%) for the period. Increases in several categories contributed to
this rise and included: office temporaries ($66,000), consulting fees
($172,000), telephone and telegraph ($42,000), bank shares tax ($38,000)
and core deposit amortization ($64,000). The rise in consulting fees
relates to expenditures for organizational restructuring which should
generate improved operating revenues and enhance the ability to sustain
quality service and community commitment.
At September 30, 1997 assets totaled $742,907,000 up $10,898,000
(1.5%) compared to $732,009,000 at September 30, 1996. During the same
period, loans rose $37,569,000 (8.0%) while investment securities
declined $22,827,000 (10.8%). Deposits remained sluggish growing
$5,311,000 or less than one percent as Federal Home Loan Bank borrowings
rose $3,130,000 over the period which helped to fund asset growth.
Shareholders' equity at September 30, 1997 reached $81,816,000 up
$2,197,000 (2.8%) over September 30, 1996. Shareholders' equity
includes unrealized gains on securities net of tax of $499,000 at
September 30, 1997 and unrealized losses on securities net of tax of
$452,000 at September 30, 1996. Total capital as a percentage of risk-weighted
assets was 17.20%, down from the 18.34% at September 30, 1996.
The Corporation's leverage capital ratio declined slightly to 10.87% at
September 30, 1997.
The reserve for loan losses totaled $5,851,000 at September 30,
1997, down $96,000 (1.6%) from September 30, 1996. The reserve for
possible loan losses to nonperforming loans ratio was 279.55% at
September 30, 1997, down the 304.19% reported at September 30, 1996, but
<PAGE> 6
still represents coverage of almost three dollars for every one dollar
of nonperforming loans. The remaining asset quality ratios remained
comparable at both end period ends. Nonperforming assets increased $219,000
(10.3%) from September 30, 1996. All nonperforming assets are secured and
losses have been considered, as appropriate, in establishing the reserve for
possible loan losses. Nonaccrual loans increased $138,000 over the period.
Major principal losses are not anticipated due to the underlying collateral
values. Loans past due 90 days or more declined by $252,000 (11.6%) at
September 30, 1997. Net charge offs climbed to $1,822,000 from $1,054,000
last year reflecting the continued trend of charge-offs in the indirect auto
portfolio. However, credit quality and performance of the remainder of the
loan portfolio remains satisfactory.
The Corporation is aware of the issues associated with the programming
code in existing computer systems as the millennium, "Year 2000", approaches.
A team has been designated to conduct a comprehensive review of the
Corporation's computer systems to identify the systems that could be affected
by the Year 2000 issues and is developing an implementation plan to address
the issues. The Corporation relies on external processing vendors for the
majority of it's data processing requirements. To date, confirmations have
been received from these vendors that plans are being developed to address
processing of transactions in the year 2000. The team has not uncovered any
issue that is not being addressed that would have a material impact on the
operations of the Corporation. However, if these modifications and conversions
are not completed on a timely basis, it is understood that the Year 2000
problem could have a material impact on the operations of the Corporation.
The Bank has identified several internal sources available for
liquidity management. First and foremost is the Bank's core deposit
base, consisting of deposits from customers who have long-standing
relationships with the Bank. Substantial internal funding can also be
derived from the Bank's investment portfolio. The portfolio provides
liquidity through the sale of available for sale securities and cash
flows derived from maturities. In addition to internal funding sources,
the Bank has numerous external funding sources. These sources provide
ample funding to meet short and long-term needs.
The Corporation is subject to a number of asserted and unasserted
potential claims encountered in the normal course of business. In the
opinion of management and legal counsel, the resolution of these claims
is not expected to have a material effect on the Corporation's financial
position, liquidity or results of operations.
THIRD QUARTER 1997 COMPARED TO THIRD QUARTER 1996
Net income for the third quarter slipped 1.7% to $2,386,000 from
the $2,428,000 reported for the same period in 1996. On a per share
basis net income rose to $0.77 from the $0.76 attained in the prior
period. The decline in earnings period-to-period was primarily the
result of the higher provision for loan losses up $218,000 (48.4%) and
increased noninterest expense up $280,000 (5.1%). Offsetting those
items was improved net interest income up $239,000 (2.9%) and increased
noninterest income up $198,000 (15.9%).
Net interest income on a fully taxable equivalent basis grew to
$8,609,000 from $8,384,000, a rise of $225,000 (2.7%). Excluding the
taxable equivalent adjustment net interest income rose to $8,399,000
from $8,164,000. The net interest margin grew five basis points to
4.85% for the quarter compared to 4.80% for the third quarter of 1996.
The rise in the margin has resulted primarily from the continued shift
in earning asset composition due to strong loan growth, principally in
the commercial sector compared to the third quarter of last year.
Average earning assets rose to $710,732,000 for the period, an increase
of $12,919,000 (1.9%) in comparison to the same period last year which
also helped to spark the rise in net interest income.
The provision for loan losses rose $218,000 (48.4%) compared to the
same period last year. The period-to-period increase was primarily the
result of the rising trend of charge-offs in the indirect auto
portfolio.
Noninterest income climbed $198 thousand 15.9% for the quarter.
Trust income rose $45,000 (11.2%) due to increased fees realized in the
personal trust sector. Service charges on deposit accounts rose
$116,000 (19.9%) due to changes to the fee structure and enhanced
collection efforts. Also, other income increased $69,000 as the result
of a $86,000 gain recorded on the sale of available for sale investment
securities.
Noninterest expense increased $280,000 (5.1%), reaching $5,765,000
for the third quarter of 1997. Salaries and employee benefits rose
$73,000 (2.7%). Equipment expenses and data processing fees rose
$88,000 (11.2%) due principally to costs associated with the Bank's new
debit card product. FDIC insurance expense dropped $155,000 due to the
one-time assessment of $162,000 to recapitalize the SAIF fund paid in
September of 1996. Other expenses rose $269,000 due primarily to the
higher level of professional fees (related to the organizational
restructuring) recognized for the period.
THIRD QUARTER 1997 COMPARED TO SECOND QUARTER 1997
Net income for the third quarter of 1997 was $2,386,000 compared to
$2,464,000 for the second quarter of the year, a $78,000 (3.2%) decline.
On a per share basis, income fell to $0.77 from $0.80. Higher
noninterest income was more than offset by a higher provision for loan
losses and increased noninterest expense for the period.
<PAGE> 7
Net interest income calculated on a fully taxable equivalent basis
declined to $8,609,000 from $8,631,000. Excluding the taxable
equivalent adjustment, net interest income was flat period-to-period
settling at $8,399,000 for the third quarter. A decline in the net
interest margin of four basis points from 4.89% to 4.85% was offset by
growth in earning assets of $5,597,000 (less than one percent) from the
second to third quarter of 1997.
The provision for loan losses edged up quarter to quarter
increasing $23,000 (3.6%) due to the continuing trend of consumer
charge-offs in the indirect auto portfolio.
Noninterest income rose $93,000 (6.9%) period-to-period. Service
charges on deposit accounts rose $41,000 (6.2%) and other income rose
$68,000 due to the gain recorded on the sale of available for sale
investment securities.
Noninterest expense rose $164,000 (2.9%) period-to-period. This
increase was primarily the result of increased professional fees
associated with the Bank's ongoing organization restructuring as most
other expense categories were relatively flat quarter to quarter.
BALANCE SHEET COMPARISON SEPTEMBER 30, 1997 TO DECEMBER 31, 1996
Total assets slipped to $742,907,000 at September 30, 1997, a
$12,451,000 (1.6%) decline from the $755,358,000 at December 31, 1996.
Loans advanced $19,945,000 (4.1%) to $509,133,000 at September 30, 1997.
Money market investments and investment securities declined $22,761,000
and $9,077,000, respectively period-to-period. These funds were used
to fund loan growth and reduce borrowings. Deposits supporting these
assets declined to $645,735,000 from $651,328,000, a decrease of less
than one percent. Shareholders' equity rose over the period reaching
$81,816,000 at September 30, 1997.
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K.
Exhibit 27: Financial Data Schedule.
The registrant filed no Form 8-K Current Report during the second
quarter ended September 30, 1997.
<PAGE> 8
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.
Southwest National Corporation
---------------------------------------
(Registrant)
November 12, 1997 /s/ David S. Dahlmann
- ----------------- ---------------------------------------
Date David S. Dahlmann
President and Chief Executive Officer
November 12, 1997 /s/ Donald A. Lawry
- ----------------- ---------------------------------------
Date Donald A. Lawry
Secretary and Treasurer
(Chief Financial Officer)
<PAGE> 9
<TABLE> <S> <C>
<ARTICLE> 9
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> SEP-30-1997
<CASH> 21,859
<INT-BEARING-DEPOSITS> 21
<FED-FUNDS-SOLD> 6,100
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 134,632
<INVESTMENTS-CARRYING> 53,541
<INVESTMENTS-MARKET> 53,268
<LOANS> 509,133
<ALLOWANCE> 5,851
<TOTAL-ASSETS> 742,907
<DEPOSITS> 645,735
<SHORT-TERM> 5,237
<LIABILITIES-OTHER> 5,119
<LONG-TERM> 5,000
0
0
<COMMON> 7,592
<OTHER-SE> 73,864
<TOTAL-LIABILITIES-AND-EQUITY> 742,907
<INTEREST-LOAN> 31,712
<INTEREST-INVEST> 8,866
<INTEREST-OTHER> 614
<INTEREST-TOTAL> 41,192
<INTEREST-DEPOSIT> 15,770
<INTEREST-EXPENSE> 16,189
<INTEREST-INCOME-NET> 25,003
<LOAN-LOSSES> 1,763
<SECURITIES-GAINS> 74
<EXPENSE-OTHER> 17,047
<INCOME-PRETAX> 7,190
<INCOME-PRE-EXTRAORDINARY> 7,190
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 7,190
<EPS-PRIMARY> 2.32
<EPS-DILUTED> 2.32
<YIELD-ACTUAL> 7.86
<LOANS-NON> 2,093
<LOANS-PAST> 1,918
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 5,651
<CHARGE-OFFS> 2,366
<RECOVERIES> 544
<ALLOWANCE-CLOSE> 5,851
<ALLOWANCE-DOMESTIC> 5,851
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
