<PAGE> 1
U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 10-QSB
(Mark One)
X Quarterly report under Section 13 or 15(d) of the Securities Exchange
- ---- Act of 1934 for the quarterly period ended September 30, 1996.
Transition report under Section 13 or 15(d) of the Exchange Act for
- ---- the transition period from to
-------------- ----------------------
Commission File No. 33-86258
FIRST COMMUNITY CORPORATION
---------------------------
(Exact Name of Small Business Issuer as Specified in its Charter)
South Carolina 57-1010751
-------------- -------------------
(State of Incorporation) (I.R.S. Employer Identification)
5455 Sunset Boulevard, Lexington, South Carolina 29072
------------------------------------------------------
(Address of Principal Executive Offices)
(803) 951-2265
--------------
(Issuer's Telephone Number, Including Area Code)
--------------------------------------------------------------------------
(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.
Yes X No
---- ----
State the number of shares outstanding of each of the issuer's classes
of common equity, as of the latest practicable date:
688,077 shares of common stock, par value $1.00 per share, were issued
and outstanding as of October 31, 1996.
Transitional Small Business Disclosure Format (check one):
Yes No X
---- ----
<PAGE> 2
PART I
FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS.
The financial statements of First Community Corporation (the
"Company") are set forth in the following pages.
<PAGE> 3
FIRST COMMUNITY CORPORATION
BALANCE SHEETS
<TABLE>
<CAPTION>
September 30,
1996 December 31,
(Unaudited) 1995
------------- ------------
ASSETS
<S> <C> <C>
Cash and due from banks $ 1,430,464 $ 548,945
Federal funds sold and securities purchased under
agreements to resell 2,628,855 4,304,268
Investment securities - available for sale 9,194,727 6,819,265
Investment securities - held to maturity (market value of
$2,546,606 and $2,201,370 at September 30, 1996 and
Decemebr 31, 1995, respectively) 2,600,160 2,200,000
Loans 13,569,190 3,833,142
Less, allowance for loan losses 163,545 76,750
------------ -----------
Net loans 13,405,645 3,756,392
Property, furniture and equipment - net 2,340,715 1,563,859
Other assets 280,942 186,869
------------ -----------
Total assets $ 31,881,508 $19,379,598
============ ===========
LIABILITIES
Deposits:
Non-interest bearing demand $ 4,364,839 $ 1,254,338
NOW and money market accounts 4,886,818 2,777,214
Savings 5,654,788 1,779,226
Time deposits less than $100,000 6,133,399 2,905,218
Time deposits $100,000 and over 3,590,620 2,617,944
------------ -----------
Total deposits 24,630,464 11,333,940
Securities sold under agreements to repurchase 1,159,300 1,631,500
Other borrowed money - demand note to US Treasury 111,919 169,361
Other liabilities 228,031 109,292
------------ -----------
Total liabilities 26,129,714 13,244,093
------------ -----------
SHAREHOLDERS' EQUITY
Common stock, par value $1.00 per share;
10,000,000 shares authorized; issued and outstanding
688,077 at September 30, 1996 and December
31, 1995 $ 688,077 $ 688,077
Additional paid in capital 6,140,837 6,140,837
Accumulated deficit (987,977) (702,449)
Unrealized gain (loss) on securities available-for-sale (89,143) 9,040
------------ -----------
Total shareholders' equity 5,751,794 6,135,505
------------ ------------
Total liabilities and shareholders' equity $ 31,881,508 $ 19,379,598
============ ============
</TABLE>
<PAGE> 4
FIRST COMMUNITY CORPORATION
STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
Nine Nine
Months Ended Months Ended
September 30 September 30
1996 1995
(Unaudited) (Unaudited)
----------- -----------
<S> <C> <C>
Interest income:
Loans, including fees $ 630,878 $ 2,305
Investment securities - taxable 467,428 29,421
Federal funds sold and securities purchased
under resale agreements 92,667 16,428
Other, Preopening - 86,754
----------- ----------
Total interest income 1,190,973 134,908
----------- ----------
Interest expense:
Deposits 472,433 9,285
Federal funds sold and securities sold under agreement
to repurchase 35,525 -
Other borrowed money 1,431 -
----------- ----------
Total interest expense 509,389 9,285
----------- ----------
Net interest income 681,584 125,623
Provision for loan losses 98,000 15,750
----------- ----------
Net interest income after provision for loan losses 583,584 109,873
----------- ----------
Non-interest income:
Deposit service charges 50,976 405
Mortgage origination fees 18,459 -
Other 12,480 492
----------- ----------
Total non-interest income 81,915 897
----------- ----------
Non-interest expense:
Salaries and employee benefits 519,769 82,440
Occupancy 106,300 17,485
Equipment 75,368 8,055
Marketing and public relations 26,115 19,418
Other 223,475 40,758
Preopening expense - 250,833
----------- ----------
Total non-interest expense 951,027 418,989
----------- ----------
Net loss $ (285,528) $ (308,219)
=========== ==========
Net loss per share $ (0.41)
===========
</TABLE>
<PAGE> 5
FIRST COMMUNITY CORPORATION
STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
Three Three
Months Ended Months Ended
September 30 September 30
1996 1995
(Unaudited) (Unaudited)
------------ ------------
<S> <C> <C>
Interest income:
Loans, including fees $ 278,670 $ 2,305
Investment securities - taxable 164,188 29,421
Federal funds sold and securities purchased
under resale agreements 30,389 16,428
Other, Preopening - 36,341
----------- -----------
Total interest income 473,247 84,495
----------- -----------
Interest expense:
Deposits 191,370 9,285
Federal funds sold and securities sold under agreement
to repurchase 12,182 -
Other borrowed money 849 -
----------- -----------
Total interest expense 204,401 9,285
----------- -----------
Net interest income 268,846 75,210
Provision for loan losses 33,000 15,750
----------- -----------
Net interest income after provision for loan losses 235,846 59,460
----------- -----------
Non-interest income:
Deposit service charges 22,956 405
Mortgage origination fees 8,002 -
Other 5,569 492
----------- -----------
Total non-interest income 36,527 897
----------- -----------
Non-interest expense:
Salaries and employee benefits 179,271 82,440
Occupancy 27,112 17,485
Equipment 26,498 8,055
Marketing and public relations 7,408 19,418
Other 77,886 40,758
Preopening expense - 95,121
----------- -----------
Total non-interest expense 318,175 263,277
----------- -----------
Net loss $ (45,802) $ (202,920)
=========== ===========
Net loss per share $ (0.07) $ (0.30)
=========== ===========
</TABLE>
<PAGE> 6
FIRST COMMUNITY CORPORATION
STATEMENT OF CHANGES IN SHAREHOLDER'S EQUITY (DEFICIT)
NINE MONTHS ENDED SEPTEMBER 30, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
Unrealized loss
Additional on Securites
Common Paid-in Accumulated Available for
Stock Capital Deficit Sale Total
---------- ---------- ----------- --------------- ----------
<S> <C> <C> <C> <C> <C>
Balance December 31, 1995 $ 688,077 $6,140,837 $(702,449) $ 9,040 $6,135,505
Net loss (285,528) (285,528)
Unrealized loss on securities
avialable-for-sale (98,183) (98,183)
---------- ---------- --------- --------- ----------
Balance September 30, 1996 $ 688,077 $6,140,837 $(987,977) ($89,143) $5,751,794
========== ========== ========= ========= ==========
</TABLE>
<PAGE> 7
FIRST COMMUNITY CORPORATION
STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
Nine months ended September 30
----------------------------------
1996 1995
-------------- -------------
<S> <C> <C>
Cash flows from operating activities:
Net loss $ (285,528) $ (308,219)
Adjustments to reconcile net loss to
net cash used in operating activities:
Depreciation 134,071 19,030
Premium amortization (Discount accretion) (2,396) -
Provision for loan losses 98,000 15,750
Increase in other assets (94,073) (5,434)
Increase (decrease) in accounts payable 118,739 (162,441)
------------- -------------
Net cash used in operating activities (31,187) (441,314)
------------- -------------
Cash flows form investing activities:
Purchase of investment securities available-for-sale (7,418,434) (11,560,829)
Maturity of investment securities available-for-sale 4,947,337 6,910,946
Purchase of investment securities held-to-maturity (1,400,312) (400,000)
Maturity of investment securities held-to-maturity 1,000,000 -
Increase in loans (9,747,253) (499,933)
Purchase of property and equipment (910,927) (1,578,885)
------------- -------------
Net cash used in investing activities 13,529,589 (7,128,701)
------------- -------------
Cash flows from financing activities:
Increase in deposit accounts 13,296,524 3,314,739
Decrease in securities sold under agreements to repurchase (472,200) -
Increase in other borrowings (57,442) -
Proceeds from sale of common stock - 6,830,444
------------- -------------
Net cash provided from financing activities 12,766,882 10,145,183
------------- -------------
Net increase (decrease) in cash and cash equivalents (793,894) 2,575,168
Cash and cash equivalents at beginning
of period 4,853,213 100
------------- -------------
Cash and cash equivalents at end of period $ 4,059,319 $ 2,575,268
============= =============
Supplemental disclosure:
Cash paid during the period for:
Interest $ 418,295 5,246
Non-cash investing and financing activities:
Unrealized (loss) on securities available-for-sale $ (94,073) (1,734)
</TABLE>
<PAGE> 8
FIRST COMMUNITY CORPORATION
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30 1996
Note 1- Basis of Presentation
The consolidated financial statements include the accounts of First
Community Corp- oration and its wholly owned subsidiary First Community
Bank, N.A. The Company was organized on November 2, 1994 (the
"Inception Date"). From the Inception Date through August 16, 1995,
the Company was a development stage company. The activities during
this period included conducting the initial public offering, the
pursuit of approvals from various agencies to charter its bank
subsidiary, establishing systems, hiring and training personnel to open
the Bank.
In the opinion of management, the unaudited financial statements
reflect all adjustments necessary for a fair presentation of the
balance sheet and results of operations for the periods presented.
Note 2 Net Loss Per Share
Net loss per share for the nine and three months ended September 30,
1996 and 1995, is based on the weighted average outstanding shares for
the period. Net loss per share for the nine month period ended
September 30, 1995 has not been presented because stock was not issued
until June 27, 1995, and the net loss per share for this period is
deemed not to be meaningful. There were 688,077 weighted average
shares outstanding for the three and nine months ended September 30,
1996 and 677,313 weighted average shares outstanding for the three
months ended September 30, 1995.
Note 3 Commitments
The Company has entered into an agreement to construct a permanent
banking facility of approximately 4,000 square feet on the site
adjacent to where the Forest Acres office facility is currently
located. The contract cost, including the building, paving and
landscaping is approximately $545,000.
<PAGE> 9
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS
The Company commenced operations on November 2, 1994 and from that
date through August 16, 1995, the Company was a Development Stage Company.
First Community Bank N.A. (the Bank), the Company's only subsidiary, began
operations on August 17, 1995. During the period from January 1, 1995 through
August 16, 1995, the Company's principal activities related to its
organization, the conducting of its initial public offering, the pursuit of
approvals from the Office of the Comptroller of the Currency for its
application to charter the Bank, the pursuit of approvals from the Federal
Deposit Insurance Corporation for its application for insurance of the deposits
of the Bank, and the pursuit of approvals from the Federal Reserve Bank of
Richmond and the South Carolina State Board of Financial Institutions for its
applications seeking approval to become a bank holding company by acquiring all
of the capital stock issued by the Bank. As a result, comparisons of the
Company's and the Bank's results of operations for the nine and three month
periods ended September 30, 1996 and September 30, 1995, particularly with
respect to their banking operations, should be made with an understanding of
those events.
Net Income (Loss)
The Company's net loss was $285,528 for the nine months ended
September 30, 1996 as compared to a loss of $308,219 for the nine months ended
September 30, 1995. This decrease in the net loss is a result of the Bank
being in operation during all of 1996, whereas in the comparable prior year
period the Company and Bank were in the development stage during the majority
of this period. Net interest income increased $551,961 and $193,636 during the
nine and three month periods ended September 30, 1996, respectively. This
increase is a result of the Bank's development of its deposit and loan base
during 1996. The Company will experience losses until the Bank grows its
assets to a point where the assets generate revenue from operations which
exceed the Bank's fixed cost. These cost, which include salaries, employee
benefits, occupancy expense, furniture and equipment expense and other
non-interest expense can be covered by the Bank's net interest income at the
point when the Bank leverages its capital with a sufficient volume of earning
assets.
Net Interest Income
The table on page 12 shows yield and rate data for interest-bearing
balance sheet components during the nine and three month periods ended
September 30, 1996, along with average balances and the related interest income
and interest expense amounts.
Net interest income was $681,584 during the nine months ended
September 30, 1996. The net interest margin for this period was 4.13% on
average earning assets of $21,997,187. Interest income during this period was
$1,190,973 consisting of interest on loans in the amount of $630,878, interest
income on the investment portfolio of $467,428 and interest income on federal
funds sold and securities purchased under agreements to resell of $92,667. The
average yield on earning assets during this period was 7.21%. Management
expects that the yield on earning
<PAGE> 10
ITEM 2. CONTINUED PAGE 2
assets will increase as the loan to deposit ratio increases and a higher
percentage of earning assets are invested in higher rate loan products as
contrasted to lower yielding U.S. Treasury and Agency securities. Interest
expense during the nine months ended September 30, 1996, amounted to $509,389
which consisted of $472,433 on deposits and $36,956 on short term borrowings.
The average rate paid during this period for all interest-bearing liabilities
was 4.29%.
During the three months ended September 30, 1996, interest income
amounted to $473,247 consisting of $278,670 of interest on loans, $164,188 of
interest income on the investment portfolio and $30,389 of interest on federal
funds sold and securities purchased under agreements to resell. The average
yield on interest earning assets was 7.39%. Interest expense during this
period was $204,401 consisting of interest on deposits of $191,370 and $13,031
on short term borrowings. The average rate paid during this quarter was 4.27%.
The quarter ended September 30, 1995, was the first quarter that the Company
had any source of revenue from banking operations. Interest income during this
period amounted to $84,495 of which $36,341 was earned on stock offering
proceeds invested in short term investments prior to the Bank commencing
operations on August 17, 1995. During the period from August 17, 1995, to
Septemebr 30, 1995, interest income consisted of $2,305 of interest on loans,
$29,421 of interest income on the investment portfolio and $16,428 of interest
income on federal funds sold.
Provision and Allowance for Loan Losses
The provision for loan losses was $98,000 and $33,000 for the nine and
three month period ending September 30, 1996, reflecting management's estimate
of the amount necessary to maintain the allowance for loan losses at a level
believed to be adequate in relation to the current size, mix and quality of the
portfolio. The Company's allowance for loan losses as a percentage of its
period-end loans was 1.21% at September 30, 1996. The Company had no
nonperforming loans at September 30, 1996. Charge-offs during the nine and
three months ended September 30, 1996, amounted to $11,205 and $1,500,
respectively. Loans past due greater than 30 days amounted to $8,879 and there
were no loans greater than 60 days past due at September 30, 1996.
Noninterest Income and Expense
Noninterest income during the nine months ended September 30, 1996,
was $81,915 resulting primarily from service charges on deposit accounts in the
amount of $50,976 and fees received from the origination of mortgage loans in
the amount of $18,459. Noninterest income during the three months ended
September 30, 1996, amounted to $36,527 consisting primarily of $22,956 of
charges on deposit accounts and $8,002 of fees received from the origination of
mortgage loans. Sources of noninterest income during the comparable nine and
three month periods of 1995 were insignificant due to the short period of time
the Bank was open for operations.
<PAGE> 11
ITEM 2. CONTINUED PAGE 3
Noninterest expense amounted to $951,027 in the nine months ended
September 30, 1996, which was an increase of $532,038 (127%) over the
comparable period of 1995. Noninterest expense for the three months ended
September 30, 1996, amounted to $318,175 an increase of $54,898 (20.9%) over
the comparable period during 1995. Noninterest expenses during the nine and
three month period ended September 30 ,1995 were primarily related to the
preopening activities noted above. The increase in noninterest expense during
1996 as compared to the comparable periods in 1995 reflect an increase in all
expense categories, as a result, of the Bank subsidiary beginning operations on
August 17, 1995.
Financial Position
Assets totaled $31,881,508 at September 30, 1996 as compared to
$19,379,598 at December 31, 1995 an increase of $12,501,910 (64.5%). Loan
growth accounted for the majority of this growth, increasing $9,736,048 from
$3,833,142 at December 31, 1995 to $13.569,190 at September 30, 1996. The loan
to deposit ratio at September 30, 1996 was 55.1% as compared to 33.8% at
December 31, 1995. It is anticipated that this ratio will continue to increase
as management invest more of its assets in the higher earning loan portfolio as
compared to the investment portfolio. The investment portfolios
(available-for-sale and held-to-maturity) increased by $2,775,622 during the
nine months of 1996.
The growth in assets was funded through growth in deposits of
$13,296,524 (117.3%) from December 31, 1995 to September 30, 1996. All
categories of deposits increased during this period and the relative mix of
average deposit balances did not change significantly.
Liquidity and Capital Resources
The Company's liquidity remains adequate to meet operating and loan
funding requirements. Federal funds sold and investment securities
available-for sale represent 37.1% of total assets. Management believes that
its existing stable base of core deposits along with continued growth in this
deposit base will enable the Company to meet its long term liquidity needs
successfully. The successful completion of the subscription offering in 1995
provided capital sufficient to fund the activities of the Bank during the
initial stages of operations and should allow the Bank to remain a "well
capitalized" institution until such time as sufficient income is generated from
operations to fund its activities on an on-going basis. Shareholders' equity
was 18.0% of total assets at September 30, 1996 as compared to 31.7% at
December 31, 1995. The Bank's risked-based capital ratios of Tier 1, total
capital and leverage ratio were 25.5%, 26.3% and 14.5%, respectively at
September 30, 1996. This compares to required OCC regulatory capital
guidelines for Tier 1capital, total capital and leverage capital ratios of
4.0%, 8.0% and 3.0%, respectively. The Company will be required by the
Federal Reserve to meet the same guidelines once its consolidated total assets
exceed $150 million.
<PAGE> 12
FIRST COMMUNITY CORPORATION
YIELDS ON AVERAGE EARNING ASSETS AND RATES
ON AVERAGE INTEREST-BEARING LIABILITIES
<TABLE>
<CAPTION>
Nine months ended September 30, 1996 Three months ended September 30, 1996
------------------------------------- -------------------------------------
Average Interest Yield/ Average Interest Yield/
Balance Earned/Paid Rate Balance Earned/Paid Rate
------------ ----------- ------ ------------ ------------- --------
<S> <C> <C> <C> <C> <C> <C>
Assets
Earning assets
Loans $ 9,008,025 $ 630,878 9.33% $12,027,143 $278,670 9.19%
Securities:
Taxable 10,683,618 467,428 5.83% 11,113,702 164,188 5.86%
Federal funds sold and securities purchased
under agreements to resell 2,305,544 92,667 5.35% 2,280,817 30,389 5.29%
----------------------------------- -------------------------------
Total earning assets 21,997,187 1,190,973 7.21% 25,421,662 473,247 7.39%
----------------------------------- -------------------------------
Cash and due from banks 807,034 916,272
Premises and equipment 1,863,068 2,176,247
Other assets 247,269 271,447
Allowance for loan losses 117,859 142,186
------------ -----------
Total assets $ 24,796,699 $28,643,442
============ ===========
LIABILITIES
Interest-bearing liabilities
NOW and money market accounts 3,480,652 57,184 2.19% 3,918,148 20,432 2.07%
Savings deposits 3,058,189 91,499 3.99% 4,606,285 48,376 4.17%
Time deposits 8,139,916 323,750 5.30% 9,255,808 122,562 5.25%
Other short term borrowings 1,136,754 36,956 4.33% 1,210,258 13,031 4.27%
----------------------------------- -------------------------------
Total interest-bearing liabilities 15,815,511 509,389 4.29% 18,990,499 204,401 4.27%
----------------------------------- -------------------------------
Demand deposits 2,941,724 3,704,280
Other liabilities 165,717 207,605
Shareholders' equity 5,873,747 5,741,058
------------ -----------
Total liabilities and shareholders' $ 24,796,699 $28,643,442
============ ===========
Net interest spread 2.92% 3.12%
Net interest income/margin $ 681,584 4.13% $268,846 4.20%
========= ========
</TABLE>
<PAGE> 13
ITEM 1. LEGAL PROCEEDINGS.
There are no material pending legal proceedings to which the Company
or any of its subsidiaries is a party or of which any of their property is the
subject.
ITEM 2. CHANGES IN SECURITIES.
(a) Not applicable
(b) Not applicable
ITEM 3. DEFAULTS UPON SENIOR SECURITIES.
Not Applicable
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
There were no matters submitted to security holders for a vote during
the three months ended September 30, 1996.
ITEM 5. OTHER INFORMATION.
None
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K.
(a) The following documents are filed as part of this report:
3.1 Amended and Restated Articles of Incorporation
(incorporated by reference to Exhibit 3.1 to the
Company's Registration Statement No. 33-86258 on Form
S-1).
3.2 Bylaws (incorporated by reference to Exhibit 3.2 to
the Company's Registration Statement No. 33-86258 on
Form S-1).
4.1 Provisions in the Company's Articles of Incorporation
and Bylaws defining the rights of holders of the
Company' Common Stock (incorporated by reference to
Exhibit 4.1 to the Company's Registration Statement
No. 33-86258 on Form S-1).
<PAGE> 14
<TABLE>
<S> <C>
10.1 Employment Agreement dated June 1, 1994, by and between Michael C. Crapps and the Company (incorporated by
reference to Exhibit 10.1 to the Company's Registration Statement no. 33-86258 on Form S-1).*
10.2 Employment Agreement dated June 1, 1994, by and between James C. Leventis and the Company (incorporated by
reference to Exhibit 10.2 to the Company's Registration Statement No. 33-86258 on Form S-1).*
10.3 Construction agreement dated January 11, 1996 by and between the Bank and Summerfield Associates, Inc. to build
permanent banking facility in Lexington, South Carolina (incorporated by reference to Exhibit 10.3 to the
Company's Annual Report for fiscal year ended December 31, 1995 on Form 10-KSB).
10.4 Contract of sale of real estate dated August 1, 1994 between First Community Bank (In Organization) and Three
Seventy-Eight Company, Inc. (Incorporated by reference to the Company's Registration Statement No. 33-86258 on
Form S-1).
10.5 Contract of sale of real estate dated July 28, 1994, between First Community Bank (In Organization) and the
Crescent Partnership (Incorporated by reference to the Company's Registration Statement No. 33-86258 on Form S-1).
10.6 First Community Corporation 1996 Stock Option Plan (Incorporated by reference to Exhibit 10.6 to the Company's
Annual Report for fiscal year ended December 31, 1995 on Form 10-KSB).
27 Financial Data Schedule (for SEC use only).
</TABLE>
*Denotes executive compensation contract or arrangement.
(b) Reports on Form 8-K.
There were no reports on Form 8-K filed by the Company during the
quarter ended September 30, 1996.
<PAGE> 15
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.
FIRST COMMUNITY CORPORATION
---------------------------
(REGISTRANT)
Date: November 8, 1996 By: /s/ Michael C. Crapps
------------------ ---------------------------------------------
Michael C. Crapps
President and Chief Executive Officer
By: /s/ Joseph G. Sawyer
---------------------------------------------
Joseph G. Sawyer
Senior Vice President, Principal Financial
Officer
<TABLE> <S> <C>
<ARTICLE> 9
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM FINANCIAL
STATEMENTS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1996, CONTAINED IN FORM 10-
QSB AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FORM 10-QSB.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> SEP-30-1996
<CASH> 1,430,464
<INT-BEARING-DEPOSITS> 0
<FED-FUNDS-SOLD> 2,628,855
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 9,194,727
<INVESTMENTS-CARRYING> 2,600,160
<INVESTMENTS-MARKET> 2,546,606
<LOANS> 13,569,190
<ALLOWANCE> 163,545
<TOTAL-ASSETS> 31,881,508
<DEPOSITS> 24,630,464
<SHORT-TERM> 1,271,219
<LIABILITIES-OTHER> 228,031
<LONG-TERM> 0
0
0
<COMMON> 688,077
<OTHER-SE> 5,063,717
<TOTAL-LIABILITIES-AND-EQUITY> 31,881,508
<INTEREST-LOAN> 630,878
<INTEREST-INVEST> 467,428
<INTEREST-OTHER> 92,667
<INTEREST-TOTAL> 1,190,973
<INTEREST-DEPOSIT> 472,433
<INTEREST-EXPENSE> 509,389
<INTEREST-INCOME-NET> 681,584
<LOAN-LOSSES> 98,000
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 951,027
<INCOME-PRETAX> (285,528)
<INCOME-PRE-EXTRAORDINARY> (285,528)
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (285,528)
<EPS-PRIMARY> (0.41)
<EPS-DILUTED> 0
<YIELD-ACTUAL> 4.13
<LOANS-NON> 0
<LOANS-PAST> 0
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 76,750
<CHARGE-OFFS> 11,205
<RECOVERIES> 0
<ALLOWANCE-CLOSE> 163,545
<ALLOWANCE-DOMESTIC> 163,545
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
