<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 June 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 July 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>
June 30
1996 December 31,
(Unaudited) 1995
------------ ------------
ASSETS
<S> <C> <C>
Cash and due from banks $ 1,685,373 $ 548,945
Federal funds sold and securities purchased under
agreements to resell 3,710,732 4,304,268
Investment securities - available for sale 7,818,201 6,819,265
Investment securities - held to maturity (market value of
$2,534,400 and $2,201,370 at June 30, 1996 and
Decemebr 31, 1995, respectively) 2,600,201 2,200,000
Loans 10,458,847 3,833,142
Less, allowance for loan losses 132,045 76,750
----------- -----------
Net loans 10,326,802 3,756,392
Property, furniture and equipment - net 1,941,395 1,563,859
Other assets 277,387 186,869
----------- -----------
Total assets $28,360,091 $19,379,598
=========== ===========
LIABILITIES
Deposits:
Non-interest bearing demand $ 5,357,132 $ 1,254,338
NOW and money market accounts 3,735,954 2,777,214
Savings 3,693,754 1,779,226
Time deposits less than $100,000 5,157,762 2,905,218
Time deposits $100,000 and over 3,281,101 2,617,944
----------- -----------
Total deposits 21,225,703 11,333,940
Securities sold under agreements to repurchase 1,032,300 1,631,500
Other borrowed money - demand note to US Treasury 119,500 169,361
Other liabilities 215,731 109,292
----------- -----------
Total liabilities 22,593,234 13,244,093
----------- -----------
SHAREHOLDERS' EQUITY
Common stock, par value $1.00 per share;
10,000,000 shares authorized; issued and outstanding
688,077 at June 30, 1996 and December
31, 1995 $ 688,077 $ 688,077
Additional paid in capital 6,140,837 6,140,837
Accumulated deficit (942,175) (702,449)
Unrealized loss on securities available-for-sale (119,882) 9,040
----------- -----------
Total shareholders' equity 5,766,857 6,135,505
----------- -----------
Total liabilities and shareholders' equity $28,360,091 $19,379,598
=========== ===========
</TABLE>
<PAGE> 4
FIRST COMMUNITY CORPORATION
Statements of Operations
<TABLE>
<CAPTION>
Six Six
Months Ended Months Ended
June 30 June 30
1996 1995
(Unaudited) (Unaudited)
----------- -----------
<S> <C> <C>
Interest income:
Loans, including fees $352,208 $ -
Investment securities - taxable 303,240 -
Federal funds sold and securities purchased
under resale agreements 62,278 -
Other, Preopening - 50,413
-------- --------
Total interest income 717,726 50,413
-------- --------
Interest expense:
Deposits 281,063 -
Federal funds sold and securities sold under agreement
to repurchase 23,343 -
Other borrowed money 582 -
-------- --------
Total interest expense 304,988 -
-------- --------
Net interest income 412,738 50,413
Provision for loan losses 65,000 -
-------- --------
Net interest income after provision for loan losses 347,738 50,413
-------- --------
Non-interest income:
Deposit service charges 28,020 -
Mortgage origination fees 10,457 -
Other 6,911 -
-------- --------
Total non-interest income 45,388 -
-------- --------
Non-interest expense:
Salaries and employee benefits 340,498 -
Occupancy 79,188 -
Equipment 48,870 -
Marketing and public relations 18,707 -
Other 145,589 -
Preopening expense - 300,327
-------- --------
Total non-interest expense 632,852 300,327
-------- --------
Net loss $(239,726) $(249,914)
========= =========
Net loss per share $ 0.35)
=========
</TABLE>
<PAGE> 5
FIRST COMMUNITY CORPORATION
Statements of Operations
<TABLE>
<CAPTION>
Three Three
Months Ended Months Ended
June 30 June 30
1996 1995
(Unaudited) (Unaudited)
----------- -----------
<S> <C> <C>
Interest income:
Loans, including fees $210,446 $ -
Investment securities - taxable 151,566 -
Federal funds sold and securities purchased
under resale agreements 30,436 -
Other, Preopening - 50,413
-------- --------
Total interest income 392,448 50,413
-------- --------
Interest expense:
Deposits 152,949 -
Federal funds sold and securities sold under agreement
to repurchase 10,994 -
Other borrowed money 502 -
-------- --------
Total interest expense 164,445 -
-------- --------
Net interest income 228,003 50,413
Provision for loan losses 29,000 -
-------- --------
Net interest income after provision for loan losses 199,003 50,413
-------- --------
Non-interest income:
Deposit service charges 17,731 -
Mortgage origination fees 5,227 -
Other 3,469 -
-------- --------
Total non-interest income 26,427 -
-------- --------
Non-interest expense:
Salaries and employee benefits 168,854 -
Occupancy 38,217 -
Equipment 25,373 -
Marketing and public relations 9,447 -
Other 74,568 -
Preopening expense - 236,227
-------- --------
Total non-interest expense 316,459 236,227
-------- --------
Net loss $(91,029) $(185,814)
======== ========
Net loss per share $ (0.13)
</TABLE> ========
<PAGE> 6
FIRST COMMUNITY CORPORATION
Statement of Changes in Shareholders' Equity (Deficit)
Six Months ended June 30, 1996
(Unaudited)
<TABLE>
<CAPTION>
Unrealized loss
Additional on Securities
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 (239,726) (239,726)
Unrealized loss on securities
available-for-sale (128,922) (128,922)
-------- ---------- --------- --------- ----------
Balance June 30, 1996 $688,077 $6,140,837 $(942,175) $(119,882) $5,766,857
======== ========== ========= ========= ==========
</TABLE>
<PAGE> 7
FIRST COMMUNITY CORPORATION
Statements of Cash Flows
<TABLE>
<CAPTION>
Six months ended June 30,
-------------------------
1996 1995
------------ -----------
<S> <C> <C>
Cash flows from operating activities:
Net loss $ (239,726) $ (105,299)
Adjustments to reconcile net loss to
net cash used in operating activities:
Depreciation 94,652 812
Premium amortization (Discount accretion) (980) -
Provision for loan losses 65,000 -
Increase in other assets (90,518) (4,889)
Increase (decrease) in accounts payable 106,439 (144,685)
---------- ---------
Net cash used in operating activities (65,133) (254,061)
---------- ---------
Cash flows form investing activities:
Purchase of investment securities available-for-sale (5,654,146) (2,485,870)
Maturity of investment securities available-for-sale 4,527,379 -
Purchase of investment securities held-to-maturity (1,400,312) -
Maturity of investment securities held-to-maturity 1,000,000 -
Increase in loans (6,635,410) -
Purchase of property and equipment (472,188) (1,025,982)
---------- ----------
Net cash used in investing activities (8,634,677) (3,511,852)
---------- ----------
Cash flows from financing activities:
Increase in deposit accounts 9,891,763 -
Decrease in securities sold under agreements to repurchase (599,200) -
Increase in other borrowings (49,861) -
Proceeds from sale of common stock - 6,188,275
---------- ----------
Net cash provided from financing activities 9,242,702 6,188,275
---------- ----------
Net increase in cash and cash equivalents 542,892 2,422,362
Cash and cash equivalents at beginning
of period 4,853,213 100
---------- ----------
Cash and cash equivalents at end of period $5,396,105 $2,422,462
========== ==========
Supplemental disclosure:
Cash paid during the period for:
Interest $ 250,049 -
Non-cash investing and financing activities:
Unrealized gain (loss) on securities available-for-sale $ (128,922) -
</TABLE>
<PAGE> 8
FIRST COMMUNITY CORPORATION
Notes to Financial Statements
June 30 1996
Note 1 Basis of Presentation
---------------------
The consolidated financial statements include the accounts of First
Community Corporation 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 six and three months ended June 30, 1996, is
based on the weighted average outstanding shares for the period. Net
loss per share for the three and six months ended June 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 six months ended June 30, 1996.
Note 3 Commitments
-----------
The Company has entered into an agreement to construct a permanent
banking facility of approximately 8,500 square feet on the 2.29 acre
site where the Lexington office facility is currently located. The
contract cost, including the building, paving and landscaping is
approximately $962,000.
<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 six months ended June 30, 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 six and three month periods ended June 30, 1996 and June 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 $239,726 for the six months ended June 30,
1996 as compared to a loss of $249,914 for the six months ended June 30, 1995.
This decrease in the net loss is a result of the Bank being in operation during
1996, whereas in the comparable prior year period the Company and Bank were in
the development stage. Net interest income increased $362,325 and $177,590
during the six and three month periods ended June 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 six and three month periods ended June 30,
1996, along with average balances and the related interest income and interest
expense amounts.
Net interest income was $412,738 during the six months ended June 30,
1996. The net interest margin for this period was 4.08% on average earning
assets of $20,266,134. Interest income during this period was $717,726
consisting of interest on loans in the amount of $352,208, interest income on
the investment portfolio of $303,240 and interest income on federal funds sold
and securities purchased under agreements to resell of $62,278. The average
yield on earning assets during this period was 7.10%. 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 six months ended June 30, 1996, amounted to $304,988 which
consisted of $281,063 on deposits and $23,925 on short term borrowings. The
average rate paid during this period for all interest-bearing liabilities was
4.30%.
During the three months ended June 30, 1996, interest income amounted
to $392,448 consisting of $210,446 of interest on loans, $151,566 of interest
income on the investment portfolio and $30,436 of interest on federal funds sold
and securities purchased under agreements to resell. The average yield on
interest earning assets was 7.24%. Interest expense during this period was
$164,445 consisting of interest on deposits of $152,949 and $11,496 on short
term borrowings. The average rate paid during this quarter was 4.25%. The
quarter ended June 30, 1995, was the first quarter that the Company had any
source of revenue. Interest income in the amount of $50,413 was earned on stock
offering subscription proceeds, that were placed in short term investments.
Provision and Allowance for Loan Losses
- ---------------------------------------
The provision for loan losses was $65,000 and $29,000 for the six and
three month period ending June 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 1.26% at June 30, 1996. The Company had no nonperforming
loans at June 30, 1996. Charge-offs during the three months ended June 30,
1996, amounted to $9,705. Loans past due greater than 30 days amounted to
$10,070 and there were no loans greater than 60 days past due at June 30, 1996.
Noninterest Income and Expense
- ------------------------------
Noninterest income during the six months ended June 30, 1996, was
$45,388 resulting primarily from service charges on deposit accounts in the
amount of $28,020 and fees received from the origination of mortgage loans in
the amount of $10,457. Noninterest income during the three months ended June
30, 1996, amounted to $26,427 consisting primarily of $17,731 of charges on
deposit accounts and $5,227 of fees received from the origination of mortgage
loans. There were no sources of noninterest income during the comparable six
and three month periods of 1995.
Noninterest expense amounted to $632,852 in the six months ended June
30, 1996, which was an increase of $332,525 (110%) over comparable period of
1995. Noninterest expense for the three months ended June 30, 1996, amounted to
$316,459 an increase of $80,232 (33.9%) over the comparable period during
1995. Noninterest expenses during the six and three month
<PAGE> 11
ITEM 2. CONTINUED PAGE 3
period ended June 30 ,1995 were 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 $28,360,091 at June 30, 1996 as compared to $19,379,598
at December 31, 1995 an increase of $8,980,493 (46.3%). Loan growth accounted
for the majority of this growth, increasing $6,625,705 from $3,833,142 at
December 31, 1995 to $10,458,847 at June 30, 1996. The loan to deposit ratio at
June 30, 1996 was 49.2% 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 $1,399,137 during the six months of 1996.
The growth in assets was funded through growth in deposits of $9,891,763
(87.3%) from December 31, 1995 to June 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 40.6% 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 20.3% of total assets at June 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 32.7%, 33.6% and 16.8%, respectively at June 30, 1996.
This compares to required OCC regulatory capital guidelines for Tier 1 capital,
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>
Six months ended June 30, 1996 Three months ended June 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 $ 7,481,877 $352,208 9.44% $ 9,047,634 $210,446 9.33%
Securities:
Taxable 10,466,213 303,240 5.81% 10,418,863 151,566 5.83%
Federal funds sold and securities purchased
under agreements to resell 2,318,044 62,278 5.39% 2,273,012 30,436 5.37%
------------------------------ -------------------------------
Total earning assets 20,266,134 717,726 7.10% 21,739,509 392,448 7.24%
------------------------------ -------------------------------
Cash and due from banks 751,815 887,644
Premises and equipment 1,704,757 1,796,527
Other assets 235,048 229,392
Allowance for loan losses 105,562 121,560
----------- -----------
Total assets $22,852,192 $24,531,512
=========== ===========
Liabilities
Interest-bearing liabilities
NOW and money market accounts 3,259,500 36,752 2.26% 3,632,128 19,654 2.17%
Savings deposits 2,275,635 43,123 3.80% 2,565,356 25,126 3.93%
Time deposits 7,575,838 201,188 5.33% 8,246,204 108,169 5.26%
Other short term borrowings 1,099,598 23,925 4.36% 1,078,707 11,496 4.27%
------------------------------ -------------------------------
Total interest-bearing liabilities 14,210,571 304,988 4.30% 15,522,395 164,445 4.25%
------------------------------ -------------------------------
Demand deposits 2,556,256 3,042,806
Other liabilities 144,544 157,102
Shareholders' equity 5,940,821 5,809,209
----------- -----------
Total liabilities and shareholders' equity $22,852,192 $24,531,512
=========== ===========
Net interest spread 2.80% 2.99%
Net interest income/margin $412,738 4.08% $228,003 4.21%
======== ========
</TABLE>
<PAGE> 13
PART II
OTHER INFORMATION
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.
The Annual Meeting of Shareholders was held on April 16, 1996. The following
six directors were elected at the meeting:
VOTES
-----------------------------------------------
For Against/Withheld
Thomas C. Brown 470,478 4,800
Robert G. Clawson 470,478 4,800
O.A. Ethridge D.M.D. 470,478 4,800
W. James Kitchens, Jr. 470,478 4,800
Broadus Thompson 470,478 4,800
Mitchell M. Willoughby 470,478 4,800
The following eleven Directors term of office continued after the
meeting:
Richard K. Bogan, M.D. Geoge H. Fann, Jr.
William L. Boyd, III William A. Jordan
Chimin J. Chao James C. Leventis
Michael C. Crapps Angelo L. Tsiantis
Hinton G. Davis Loretta R. Whitehead
Anita B. Easter
The approval of the adoption of the Company's 1996 Stock Option Plan
and issuance of options under the plan was voted upon at the meeting. There
were 412,067 votes cast for and 15,610 votes were cast against or withheld for
approval of the plan. There were 55,089 broker non-votes as to this matter.
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).
<PAGE> 14
4.1 Provisions in the Company's Articles of Incorporation
and Bylaws defining the rights of holders of the
Company's Common Stock (incorporated by reference to
Exhibit 4.1 to the Company's Registration Statement
No. 33-86258 on Form S-1).
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)
*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 June 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: July 31, 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 SIX MONTHS ENDED JUNE 30, 1996 CONTAINED IN FORM
10QSB AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH 10QSB
</LEGEND>
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> JUN-30-1996
<CASH> 1,685,373
<INT-BEARING-DEPOSITS> 0
<FED-FUNDS-SOLD> 3,710,732
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 7,818,201
<INVESTMENTS-CARRYING> 2,600,201
<INVESTMENTS-MARKET> 2,534,400
<LOANS> 10,458,847
<ALLOWANCE> 132,045
<TOTAL-ASSETS> 28,360,091
<DEPOSITS> 21,225,703
<SHORT-TERM> 1,151,800
<LIABILITIES-OTHER> 215,731
<LONG-TERM> 0
0
0
<COMMON> 688,077
<OTHER-SE> 5,078,780
<TOTAL-LIABILITIES-AND-EQUITY> 28,360,091
<INTEREST-LOAN> 352,208
<INTEREST-INVEST> 303,240
<INTEREST-OTHER> 62,278
<INTEREST-TOTAL> 717,726
<INTEREST-DEPOSIT> 281,063
<INTEREST-EXPENSE> 304,988
<INTEREST-INCOME-NET> 412,738
<LOAN-LOSSES> 65,000
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 632,852
<INCOME-PRETAX> (239,726)
<INCOME-PRE-EXTRAORDINARY> (239,726)
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (239,726)
<EPS-PRIMARY> (0.35)
<EPS-DILUTED> 0
<YIELD-ACTUAL> 4.08
<LOANS-NON> 0
<LOANS-PAST> 0
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 76,750
<CHARGE-OFFS> 9,705
<RECOVERIES> 0
<ALLOWANCE-CLOSE> 132,045
<ALLOWANCE-DOMESTIC> 132,045
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
