UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
FORM 10-Q
Mark One
/X/ QUARTERLY REPORT PERSUANT TO SECTION 13 OR 15 (d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarter period ended March 31, 2000
// TRANSITION REPORT PERSUANT TO SECTION 13 OR 15 (d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from _______ to _______
Commission File Number: 33-81890
Community Bankshares, Inc.
__________________________________
(Exact name of registrant as specified in its charter)
Georgia 58-1415887
(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification No.)
448 North Main Street,
Cornelia, Georgia 30531
(Address of principal executive offices)
(Zip Code)
(706) 778-2265
(Registrant's telephone number, including area code)
N/A
(Former name, former address and former fiscal
year, if changed since last report)
Indicate by check mark whether the registrant has (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. Yes X No
APPLICABLE ONLY TO CORPORATE ISSUERS
Indicate the number of shares outstanding of each of the
issuer's classes of common stock, as of
May 1, 2000: 2,178,830
COMMUNITY BANKSHARES, INC.
AND SUBSIDIARIES
INDEX
Page No.
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
Condensed Balance Sheet -
March 31, 2000 and December 31, 1999 2
Condensed Statements of Operations
and Comprehensive Income for Three
Months Ended March 31, 2000 and 1999 3
Condensed Statements of Cash Flows -
Three Months Ended March 31, 2000 and 1999 4
Note to Condensed Financial Statements 5
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations 6
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8 - K 7
Signatures 8
<PAGE>
PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
<TABLE>
<CAPTION>
COMMUNITY BANKSHARES, INC.
AND SUBSIDIARIES
CONDENSED BALANCE SHEETS
MARCH 31, 2000 AND DECEMBER 31, 1999
(Dollars in thousands)
(Unaudited)
=========================================================================
Assets 2000 1999
---------- ----------
<S> <C> <C>
Cash and due from banks $ 30,681 $ 31,834
Interest-bearing deposits in banks 37 161
Federal funds sold 23,505 2,940
Securities available-for-sale 52,650 49,143
Securities held-to-maturity (fair value
$31,140 and $31,349) 31,640 31,939
Loans held for sale 170 1,275
Loans 387,909 375,593
Less allowance for loan losses 5,890 5,682
---------- ----------
Loans, net 382,019 369,911
---------- ----------
Premises and equipment 13,567 13,444
Other assets 17,757 15,502
---------- ----------
Total assets $ 552,026 $ 516,149
---------- ----------
Liabilities and Shareholders' Equity
Deposits
Noninterest-bearing demand $ 72,030 $ 65,815
Interest-bearing demand 108,489 99,185
Savings 22,622 20,863
Time, $100,000 and over 89,727 79,925
Other time 186,302 178,268
---------- ----------
Total deposits 479,170 444,056
Federal Home Loan Advances 15,000 15,000
Other borrowings 1,016 1,054
Other liabilities 10,482 11,237
---------- ----------
Total liabilities 505,668 471,347
---------- ----------
Commitments and contingent liabilities
Redeemable common stock held by ESOP, 380,990
and 380,780 shares outstanding at March 31,
2000and December 31, 1999, respectively 13,990 13,982
-------- --------
Shareholders' equity
Common stock, par value $1; 5,000,000
shares authorized; 2,178,830
shares issued and outstanding 2,179 2,179
Capital surplus 6,115 6,115
Retained earnings 25,352 23,853
Accumulated other comprehensive loss,
net of tax (1,278) (1,327)
---------- ----------
Total shareholders' equity 32,368 30,820
---------- ----------
Total liabilities and shareholders' equity $ 552,026 $ 516,149
---------- ----------
<FN>
See Notes to Condensed Financial Statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
COMMUNITY BANKSHARES, INC.
AND SUBSIDIARIES
CONDENSED STATEMENTS OF INCOME
AND COMPREHESIVE INCOME
THREE MONTHS ENDED MARCH 31, 2000 AND 1999
(Dollars in thousands, except per share amounts)
(Unaudited)
==========================================================================
Three Months Ended
March 31,
2000 1999
----------- -----------
<S> <C> <C>
Interest income
Loans $ 9,500 $ 8,136
Taxable securities 647 553
Nontaxable securities 509 484
Deposits in banks 15 5
Federal funds sold 256 262
----------- -----------
Total interest income 10,927 9,440
----------- -----------
Interest expense on deposits
Deposits 4,842 4,124
Other borrowings 224 79
----------- -----------
Total interest expense 5,066 4,203
----------- -----------
Net interest income 5,861 5,237
Provision for loan losses 342 270
----------- -----------
Net interest income after
provision for loan losses 5,519 4,967
----------- -----------
Other income
Service charges on deposit accounts 749 661
Other service charges and fees 195 141
Gains on sale of loans 124 57
Trust Department fees 28 46
Nonbank subsidiary non-interest income 2,073 1,434
Other operating income 121 178
----------- -----------
Total other income 3,290 2,517
----------- -----------
Other expenses
Salaries and employee benefits 3,487 2,952
Occupancy expense 364 323
Equipment expense 617 606
Other operating expenses 2,018 1,804
----------- -----------
Total other expenses 6,486 5,685
----------- -----------
Income before income taxes 2,323 1,799
Income tax expense 722 467
----------- -----------
Net income $ 1,601 $ 1,332
----------- -----------
Other comprehensive income (loss):
Unrealized gains (losses) on securities
available-for-sale arising during
the period 49 (272)
Less: reclassification adjustment
for gains included in net
income - -
----------- -----------
Total other comprehensive income (loss) 49 (272)
----------- -----------
Comprehensive income $ 1,650 $ 1,060
=========== ===========
Basic earnings per common share $ 0.73 $ 0.61
----------- -----------
Diluted earnings per common share 0.73 0.61
----------- -----------
Cash dividends per share of common stock $ 0.0435 $ 0.0395
----------- -----------
<FN>
See Notes to Condensed Financial Statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
COMMUNITY BANKSHARES, INC.
AND SUBSIDIARIES
CONDENSED STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED MARCH 31, 2000 AND 1999
(Dollars in thousands)
(Unaudited)
2000 1999
-------- --------
<S> <C> <C>
OPERATING ACTIVITIES
Net income $ 1,601 $ 1,332
Adjustments to reconcile net income to
net cash provided by (used in) operating
activities:
Depreciation and amortization 641 549
Provision for loan losses 342 270
Provision for other real estate 5 -
Deferred income taxes (107) (125)
(Increase) decrease in loans held for sale 1,105 (551)
Net losses on sale of other real estate 8 -
Increase in interest receivable (246) (604)
Increase (decrease) in interest payable 717 (893)
Increase in taxes payable 775 592
(Increase) decrease in accounts
receivable of nonbank subsidiary (289) 251
(Increase) decrease in work in
process of nonbank subsidiary (1,007) 293
Decrease in accruals and (1,561) (1,461)
payables of nonbank subsidiary
Other operating activities (1,053) (40)
---------- ----------
Net cash provided by
(used in) operating activities 931 (387)
---------- ----------
INVESTING ACTIVITIES
Purchases of securities available-for-sale (3,985) (9,313)
Proceeds from maturities of securities
available-for-sale 560 4,305
Purchases of securities held-to-maturity (695) (448)
Proceeds from maturities of securities
held-to-maturity 994 480
Net (increase) decrease in Federal funds sold (20,565) 4,215
Net increase (decrease) in interest-bearing
deposits in banks 124 (15)
Net increase in loans (12,881) (14,966)
Purchase of premises and equipment (665) (871)
Proceeds from sales of other real estate 48 22
---------- ----------
Net cash used in
Investing activities (37,065) (16,591)
---------- ----------
FINANCING ACTIVITIES
Net increase in deposits 35,114 15,533
Repayment of other borrowings (38) (362)
Dividends paid (95) (86)
---------- ----------
Net cash provided by
financing activities 34,981 15,809
Net decrease in cash and
due from banks $ (1,153) $ (1,169)
Cash and due from banks at beginning of the period 31,834 26,796
---------- ----------
Cash and due from banks at end of the period $ 30,681 $ 25,627
---------- ----------
SUPPLEMENTAL DISCLOSURES
Cash paid for:
Interest $ 4,349 $ 5,096
Income taxes $ 54 $ -
NONCASH TRANSACTIONS
Unrealized (gains) losses on
securities available-for sale $ 82 $ 453
Principal balances on loans
transferred to other
real estate $ 431 $ 51
<FN>
See Notes to Condensed Financial Statements
</FN>
</TABLE>
<PAGE>
COMMUNITY BANKSHARES, INC.
AND SUBSIDIARIES
NOTE TO CONDENSED FINANCIAL STATEMENTS
NOTE 1. BASIS OF PRESENTATION
The consolidated financial information included herein is unaudited; however,
such information reflects all adjustments (consisting solely of normal
recurring adjustments) which are, in opinion of management, necessary for a
fair statement of results for the interim periods.
The results of operations for the three month period ending March 31, 2000
are not necessarily indicative of the results to be expected for the full
year.
NOTE 2. CURRENT ACCOUNTING DEVELOPMENTS
In June 1998, the Financial Accounting Standards Board issued SFAS No. 133,
"Accounting for Derivative Instruments and Hedging Activities". The
effective date of this statement has been deferred by SFAS No. 137 until
fiscal years beginning after June 15, 2000. However, the statement permits
early adoption as of the beginning of any fiscal quarter after its issuance.
The Company expects to adopt this statement effective January 1, 2001. SFAS
No. 133 requires the Company to recognize all derivatives as either assets or
liabilities in the balance sheet at fair value. For derivatives that are not
designated as hedges, the gain or loss must be recognized in earnings in the
period of change. For derivatives that are designated as hedges, changes in
the fair value of the hedged assets, liabilities, or firm commitments must be
recognized in earnings or recognized in other comprehensive income until the
hedged item is recognized in earnings, depending on the nature of the hedge.
The ineffective portion of a derivative's change in fair value must be
recognized in earnings immediately. Management has not yet determined what
effect the adoption of SFAS No. 133 will have on the Company's earnings or
financial position.
There are no other recent accounting pronouncements that have had, or are
expected to have, a material effect on the Company's financial statements.
NOTE 3 EARNINGS PER COMMON SHARE
The following is a reconciliation of net income (the numerator) and
weighted-average shares outstanding (the denominator) used in determining
basic and diluted earnings per common share (EPS).
<TABLE>
<CAPTION>
Three Months Ended March 31, 2000
(Dollars and shares in Thousands,
except per share amounts)
Net Weighted-Average
Income Shares Per Share
(Numerator) (Denominator) Amount
<S> <C> <C> <C>
Basic EPS $1,601 2,179 $.073
Effect of Dilutive
Securities - 20
Stock options
---------- ---------- ----------
Diluted EPS $1,601 2,199 $.073
========== ========== ==========
</TABLE>
<TABLE>
<CAPTION>
Three Months Ended March 31, 1999
(Dollars and shares in Thousands,
except per share amounts)
Net Weighted-Average
Income Shares Per Share
(Numerator) (Denominator) Amount
<S> <C> <C> <C>
Basic EPS $1,332 2,170 $0.61
Effect of Dilutive
Securities - 26
Stock options
---------- ---------- ----------
Diluted EPS $1,332 2,196 $0.61
========== ========== ==========
</TABLE>
<PAGE>
NOTE 4 SEGMENT INFORMATION
Selected segment information by industry segment for the periods ended March
31, 2000 and 1999 is as follows:
<TABLE>
<CAPTION>
Reportable Segments
(Dollars in thousands)
---------------------------------------
All
For the Period Ended March Banking Financial Other Total
31, 2000 Supermarkets
----------------------------- --------- ------------ -------- ---------
<S> <C> <C> <C> <C>
Revenue from external
customers $ 12,270 2,089 37 $ 14,396
Intersegment revenues
(expenses) (175) 316 582 723
Segment profit (loss) 1,258 703 (268) 1,693
Segment assets $561,411 17,634 3,450 $582,495
</TABLE>
<TABLE>
<CAPTION>
Reportable Segments
(Dollars in thousands)
---------------------------------------
All
For the Period Ended March Banking Financial Other Total
31, 1999 Supermarkets
----------------------------- --------- ------------ -------- ---------
<S> <C> <C> <C> <C>
Revenue from external $ 10,648 1,494 42 $12,184
customers
Intersegment revenues
(expenses) (122) 153 395 426
Segment profit (loss) $ 1,170 460 (247) $ 1,383
</TABLE>
<TABLE>
<CAPTION>
2000 1999
--------- ----------
Net Income
<S> <C> <C>
Total profit for reportable segments $ 1,961 $ 1,630
Non-reportable segment loss (268) (247)
Elimination of intersegment (92) (51)
(gains) losses
--------- ----------
Total consolidated other income $ 1,601 $ 1,332
========= ==========
</TABLE>
COMMUNITY BANKSHARES, INC.
AND SUBSIDIARIES
MANAGEMENT DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
Forward Looking Statements
- --------------------------------------------
The following appears in accordance with the Securities Litigation Reform
Act. These financial statements and discussion and analysis include forward
looking statements that involve inherent risks and uncertainties. A number
of important factors could cause actual results to differ materially from
those in the forward looking statements. Those factors include fluctuations
in interest rates, inflation, government regulations, economic conditions,
Year 2000 issues and competition in the geographic business areas in which
the Company conducts its operations.
Management's Discussion and Analysis
- --------------------------------------------
The following is management's discussion and analysis of certain significant
factors which have affected the Company's financial position and operating
results during the periods included in the accompanying consolidated
financial statements.
Financial Condition
As of March 31, 2000, the Company continues to experience growth in total
assets, total loans and total deposits as compared to December 31, 1999.
Total assets, loans, and deposits increased by 6.95%, 2.97% and 7.91%
respectively. The growth in loans, although less than prior year, is not an
unexpected growth trend. The growth in deposits is higher than prior year,
but consistent with management's expectations. The growth in assets is
attributable to growth in deposits and retention of earnings. Management
expects the growth to continue in the future.
Liquidity
As of March 31, 2000, the Liquidity Ratio was 24.37% which is within the
Company's target range of 20 - 25%. The banks have available lines of credit
to meet liquidity needs. Liquidity is measured by the ratio of net cash,
short term and marketable securities to net deposits and short term
Liabilities.
Interest Rate Risk
The Company's overall interest rate risk was less than 5% of net interest
income subjected to rising and falling rates of 200 basis points. The
company has positioned itself to be protected against any perceivable change
in rates in either direction.
Capital
Banking regulation requires the Company and the Banks to maintain capital
levels in relation to Company assets. At March 31, 2000, the Company's and
the Bank's capital ratios were considered satisfactory based on regulatory
minimum capital requirements. The minimum capital requirements and the
actual capital ratios for the Company at March 31, 2000 were as follows:
<TABLE>
<CAPTION>
Actual Regulatory
Minimum
<S> <C> <C>
Leverage 8.41% 4.00%
Risked Based
Capital ratios:
Core Capital 10.79% 4.00%
Total Capital 12.04% 8.00%
</TABLE>
Results of Operation
Net interest income for the three month period ended March 31, 2000 increased
11.92% to $5,861,000 over $5,237,000 for the same period for 1999. Interest
income for the three month period was up by 15.75% from $9,440,000 to
$10,927,000. This increase in interest income is due to an increase in
earning assets of 16.27% or $69,390,000 at March 31, 2000, compared to March
31, 1999. The largest increase in earning assets since March 31, 1999 was
the increase in loans of $58,639,000 or 17.80%. Investment securities
increased by $6,327,000 while Federal Funds sold increased by $4,830,000.
For the first three months of 2000, earning assets increased by $34,860,000
or 7.56%. Interest expense on interest bearing deposits was up by $718,000
or 17.41% for the first three months of 2000 over the same period for 1999.
This increase in interest expense is due to an increase in interest bearing
deposits of 13.11% or $47,179,000 at March 31, 2000, compared to March 31,
1999. For the first three months of 2000, interest bearing deposits
increased by $28,899,000 or 7.64%. The increase in interest income, interest
expense, and net interest income were all consistent with budget projections
made by management and is on target to be consistent with annual
projections.
The loan loss reserve for the company is evaluated monthly and adjusted to
reflect the risk in the portfolio in the following manner. We use four
different methods of measuring risk in the portfolio: (a) Risk in our watch
list of loans and past due ratios; (b) Historical charge offs; ( c) Peer
group comparisons; and (d) Percentage of classified loans. We then compare
results to reserve balances to assure any and all identified risk are covered.
The provision for loan losses was $342,000 and $270,000 for the first three
months of 2000 and 1999, respectively. This provision can fluctuate
depending on Small Business Administration (SBA) loans closed, as we have a
policy of reserving 5% of the un-guaranteed portion of any SBA loans. The
Company currently has reserves totaling $1,052,000 for its un-guaranteed
portion of SBA loans.
The following table furnishes information on the Loan Loss Reserve for the
current three month reporting period and the same period for 1999.
<TABLE>
<CAPTION>
2000 1999
<S> <C> <C>
Beginning Balance $ 5,682 $ 4,863
Less Charge Offs:
Real Estate Loans (0) (23)
Commercial Loans (89) (85)
Consumer Loans (130) (113)
Credit Cards (0) (7)
-------- --------
(219) (228)
-------- --------
Plus Recoveries
Real Estate Loans 0 4
Commercial Loans 39 18
Consumer Loans 46 41
Credit Cards 0 2
-------- --------
85 65
-------- --------
Plus Provision 342 270
-------- --------
Ending Balance $ 5,890 $ 4,970
======== ========
</TABLE>
The Provision for Loan Losses for the three month period ended March 31, 2000
represented 156% of charge offs for the same period, while the provision for
the first three months of 1999 represented 118% of the charge offs recorded
in that period. The reserve at the end of March 31, 2000 represented 269% of
non-accrual loans while the reserve at March 31, 1999 represented 608% of
non-accrual loans. Non accrual loans have increased from $817,000 at March
31, 1999 to $2,190,000 as of March 31, 2000. Past due loans greater than 90
days and accruing interest have decreased from $1,704,000 in 1999 to $523,000
in 2000. This increase is indicative of a slight deterioration in loan
quality. Management is aware of this trend and continues to take steps to
address the issue of loan quality. The Company is currently outside its
policy guideline of maintaining a loan loss reserve of 200% of non-performing
assets. However, $750,000 of non-accrual loans are guarantee by the Small
Business Administration and after taking the effect of these guarantees into
consideration, the Company would have a loan loss reserve of 196%of
non-performing assets. The Loan Loss Reserve balance to total loan ratio at
March 31, 2000 was 1.52% as compared to 1.51% at March 31, 1999. Management
considered the Loan loss Reserve to be adequate to absorb any losses that may
be incurred.
The following table is a summary of Non Accrual, Past due and Restructured
Debt
<TABLE>
<CAPTION>
March 31, 2000
Non-accrual Past Due Restructured
Loans 90 days Debt
Still
accruing
<S> <C> <C> <C>
Real Estate Loans $0 $0 $0
Commercial Loans 1,425 367 778
Consumer Loans 765 156 0
-------- -------- --------
Total $2,190 $523 $778
======== ======== ========
</TABLE>
<TABLE>
<CAPTION>
March 31, 1999
Non-accrual Past Due Restructured
Loans 90 days Debt
Still
accruing
<S> <C> <C> <C>
Real Estate Loans $167 $409 $0
Commercial Loans 262 1,003 762
Consumer Loans 388 292 0
-------- -------- --------
Total $817 $1,704 $762
======== ======== ========
</TABLE>
Loans classified for regulatory purposes as loss, doubtful, substandard, or
special mention that have not been included in the table above do not
represent or result from trends or uncertainties which management reasonably
expects will materially impact future operating results, liquidity or capital
resources. These classified loans do not represent material credits about
which management is aware of any information which causes management to have
serious doubts as to the ability of such borrows to comply with the loan
payment terms.
The bank places loans on non-accrual at such a time it is apparent that the
collection of all principal and interest is questionable and the loan is
either past due 90 days or bankruptcy has been filed.
Other income increased by 30.71% or $773,000 during the three month period
ended March 31, 2000 as compared to the same period for 1999. Nonbank
subsidiary income increased by $639,000 in the first quarter of 2000 compared
to 1999, due to an increase in the number of supermarket bank unit
installations during the first quarter. Service charges on deposit accounts
increased by $88,000 or 13.31% as compared to the same period for 1999. The
major changes were the increase in non-sufficient funds (NSF) charges of
$91,000 and the decrease in stop payment fees of 3,000. NSF charges
increased primarily as a result of the Company's continued growth in accounts
in the totally free checking program. The increase of $54,000 in other
service charges and fees is a result of the overall growth in deposit
customers the banks have experienced during the three months ended March 31,
2000 compared to the same period in 1999. The gains on sale of loans
increased by $67,000 during the three month period ended March 31, 2000 as
compared to the same period for 1999. This increase is due to an increased
number of sales of guaranteed portions of SBA loans during the first quarter.
Other operating expenses increased by 14.09% or $801,000 for the first three
months of 2000 over the same period in 1999. Salaries and benefits increased
by $535,000 or 18.12% from the first quarter of 1999 to the first quarter of
2000. This increase is primarily resulting from the increase in full time
equivalent employees from 291 at the end of March 1999 to 324 at the end of
March 2000. Equipment and occupancy expenses were up by $52,000 or 5.60% for
the first quarter of 2000 over the first quarter of 1999. The increase in
full time equivalent employees as well as equipment and occupancy expenses
was primarily due to the addition of three supermarket banking centers during
the past twelve months.
The Company incurred income tax expenses of $722,000 which represents an
effective rate of 32% for the three month period ended March 31, 2000 as
compared to $467,000 which represents an effective tax rate of 26% for the
same period in 1999. The increase in the effective tax rate is related to
the increased income of Financial Supermarkets, which does not have a portion
of its income tax-free as do the Community Banking Subsidiaries.
Net income for the three month period was $1,601,000 or an increase of 20.20%
over the same period for 1999. Management anticipates earnings to continue
to meet the budgeted projections and to exceed prior year levels. However,
Management cannot guarantee the overall increase in earnings in 2000 compared
to 1999 due to the variation in the number of supermarket bank installations
from year to year.
The company is not aware of any other known trends, events or uncertainties,
other than the effect of events as described above, that will have or that
are reasonably likely to have a material effect on its liquidity, capital
resources or operations. The Company is also not aware of any current
recommendations by the regulatory authorities which, if they were
implemented, would have such an effect.
YEAR 2000 COMPLIANCE
Based on a review of the Bank's and the Company's business since January 1,
2000, the Company has not experienced any material effects of the Year 2000
problem. Although the Company has not been informed of any material risks
associated with the Year 2000 problem from third parties, there can be no
assurance that the Company will not be impacted in the future. The Company
will continuously monitor its business applications and maintain contact with
its third party vendors and key business partners to resolve any Year 2000
problems that may arise in the future.
<PAGE>
ITEM 6. Exhibits and Reports on Form 8-K
(a) Exhibits
Exhibit 27. Financial Data Schedule
(b) Reports on Form 8-K
None.
<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.
COMMUNITY BANKSHARES, INC.
DATE: May 15, 2000 BY: /s/ Harry L. Stephens
Harry L. Stephens,
Executive Vice President and
Chief Financial Officer
<TABLE> <S> <C>
<ARTICLE> 9
<MULTIPLIER>1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-2000
<PERIOD-START> JAN-01-2000
<PERIOD-END> MAR-31-2000
<CASH> 30,681
<INT-BEARING-DEPOSITS> 37
<FED-FUNDS-SOLD> 23,505
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 52,650
<INVESTMENTS-CARRYING> 31,640
<INVESTMENTS-MARKET> 31,140
<LOANS> 388,079
<ALLOWANCE> 5,890
<TOTAL-ASSETS> 552,026
<DEPOSITS> 479,170
<SHORT-TERM> 16,016
<LIABILITIES-OTHER> 10,482
<LONG-TERM> 0
<COMMON> 2,179
13,990
0
<OTHER-SE> 30,189
<TOTAL-LIABILITIES-AND-EQUITY> 552,026
<INTEREST-LOAN> 9,500
<INTEREST-INVEST> 1,412
<INTEREST-OTHER> 15
<INTEREST-TOTAL> 10,927
<INTEREST-DEPOSIT> 4,842
<INTEREST-EXPENSE> 5,066
<INTEREST-INCOME-NET> 5,861
<LOAN-LOSSES> 342
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 6,486
<INCOME-PRETAX> 2,323
<INCOME-PRE-EXTRAORDINARY> 2,323
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,601
<EPS-BASIC> .73
<EPS-DILUTED> .73
<YIELD-ACTUAL> 1.18
<LOANS-NON> 2,190
<LOANS-PAST> 523
<LOANS-TROUBLED> 778
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 5,682
<CHARGE-OFFS> 219
<RECOVERIES> 85
<ALLOWANCE-CLOSE> 5,890
<ALLOWANCE-DOMESTIC> 0
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 5,890
</TABLE>
