<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 March 31, 1997
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 April 30, 1997.
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>
March 31,
1997 December 31,
(Unaudited) 1996
------------ ------------
<S> <C> <C>
ASSETS
Cash and due from banks $ 1,663,312 $ 1,975,527
Federal funds sold and securities purchased under
agreements to resell 3,166,193 5,752,272
Investment securities - available for sale 9,754,965 9,213,248
Investment securities - held to maturity (market value of
$2,545,230 and $2,562,844 at March 31, 1997 and
Decemebr 31, 1996, respectively) 2,600,011 2,600,076
Loans 19,763,161 15,915,004
Less, allowance for loan losses 231,433 200,860
------------ ------------
Net loans 19,531,728 15,714,144
Property, furniture and equipment - net 2,690,711 2,544,140
Other assets 314,298 329,834
------------ ------------
Total assets $ 39,721,218 $ 38,129,241
============ ============
LIABILITIES
Deposits:
Non-interest bearing demand $ 5,728,541 $ 6,043,599
NOW and money market accounts 5,646,174 5,963,086
Savings 6,400,863 7,154,307
Time deposits less than $100,000 8,488,714 6,731,697
Time deposits $100,000 and over 6,197,224 5,008,135
------------ ------------
Total deposits 32,461,516 30,900,824
Securities sold under agreements to repurchase 1,173,700 923,400
Other borrowed money - demand note to US Treasury 123,051 299,559
Other liabilities 208,400 223,352
------------ ------------
Total liabilities 33,966,667 32,347,135
------------ ------------
SHAREHOLDERS' EQUITY
Common stock, par value $1.00 per share;
10,000,000 shares authorized; issued and outstanding
688,077 at March 31, 1997 and December 31, 1996 688,077 688,077
Additional paid in capital 6,140,837 6,140,837
Accumulated deficit (968,421) (984,080)
Unrealized loss on securities available-for-sale (105,942) (62,728)
------------ ------------
Total shareholders' equity 5,754,551 5,782,106
------------ ------------
Total liabilities and shareholders' equity $ 39,721,218 $ 38,129,241
============ ============
</TABLE>
<PAGE> 4
FIRST COMMUNITY CORPORATION
STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
Three Three
Months Ended Months Ended
March 31, March 31,
1997 1996
(Unaudited) (Unaudited)
------------ ------------
<S> <C> <C>
Interest income:
Loans, including fees $ 411,224 $ 141,762
Investment securities - taxable 193,794 151,674
Federal funds sold and securities purchased
under resale agreements 48,239 31,842
--------- ---------
Total interest income 653,257 325,278
--------- ---------
Interest expense:
Deposits 266,873 128,114
Federal funds sold and securities sold under agreement
to repurchase 11,407 12,349
Other borrowed money 1,090 80
--------- ---------
Total interest expense 279,370 140,543
--------- ---------
Net interest income 373,887 184,735
Provision for loan losses 37,000 36,000
--------- ---------
Net interest income after provision for loan losses 336,887 148,735
--------- ---------
Non-interest income:
Deposit service charges 33,923 10,289
Mortgage origination fees 2,696 5,230
Other 9,153 3,442
--------- ---------
Total non-interest income 45,772 18,961
--------- ---------
Non-interest expense:
Salaries and employee benefits 199,851 171,644
Occupancy 28,889 40,971
Equipment 31,957 23,497
Marketing and public relations 16,470 9,260
Other 89,833 71,021
--------- ---------
Total non-interest expense 367,000 316,393
--------- ---------
Net income (loss) $ 15,659 $(148,697)
========= =========
Net income (loss) per share $ 0.02 $ (0.22)
========= =========
</TABLE>
<PAGE> 5
FIRST COMMUNITY CORPORATION
STATEMENT OF CHANGES IN SHAREHOLDER'S EQUITY
THREE MONTHS ENDED MARCH 31, 1997
(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, 1996 $688,077 $6,140,837 $(984,080) $ (62,728) $5,782,106
Net income 15,659 15,659
Unrealized loss on securities
avialable-for-sale (43,214) (43,214)
-------- ---------- --------- --------- ----------
Balance March 31, 1997 $688,077 $6,140,837 $(968,421) $(105,942) $5,754,551
======== ========== ========= ========= ==========
</TABLE>
<PAGE> 6
FIRST COMMUNITY CORPORATION
STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
Three months ended March 31,
--------------------------
1997 1996
----------- -----------
<S> <C> <C>
Cash flows from operating activities:
Net income (loss) $ 15,659 $ (148,697)
Adjustments to reconcile net income (loss) to
net cash used in operating activities:
Depreciation 35,314 47,050
Premium amortization (Discount accretion) (2,365) (140)
Provision for loan losses 37,000 36,000
(Increase) decrease in other assets 15,536 (25,411)
Increase (decrease) in accounts payable (14,952) 41,350
----------- -----------
Net cash used in operating activities 86,192 (49,848)
----------- -----------
Cash flows form investing activities:
Purchase of investment securities available-for-sale (3,080,302) (5,654,146)
Maturity of investment securities available-for-sale 2,497,801 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 (3,854,584) (3,913,966)
Purchase of property and equipment (181,885) (151,143)
----------- -----------
Net cash used in investing activities (4,618,970) (5,592,188)
----------- -----------
Cash flows from financing activities:
Increase in deposit accounts 1,560,692 4,699,856
Increase (decrease) in securities sold under agreements to repurchase 250,300 (744,000.00)
Decrease in other borrowings (176,508) (110,150.00)
----------- -----------
Net cash provided from financing activities 1,634,484 3,845,706
----------- -----------
Net increase in cash and cash equivalents (2,898,294) (1,796,330)
Cash and cash equivalents at beginning
of period 7,727,799 4,853,213
----------- -----------
Cash and cash equivalents at end of period $ 4,829,505 $ 3,056,883
=========== ===========
Supplemental disclosure:
Cash paid during the period for:
Interest $ 278,017 $ 114,532
Non-cash investing and financing activities:
Unrealized gain (loss) on securities available-for-sale $ (43,214) $ (99,037)
</TABLE>
<PAGE> 7
FIRST COMMUNITY CORPORATION
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 1997
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. All material inter-company transactions are eliminated in
consolidation. 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 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. Cost incurred through March 31,
1997 were approximately, $265,000.
<PAGE> 8
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS
First Community Corporation (the Company) is a one bank holding
company which was incorporated in South Carolina 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. The Company expected to experience losses until
the Bank grew its assets to a point where the assets generated revenue from
operations which exceeded the Bank's fixed cost. The Company experienced its
first quarterly profit in the fourth quarter of 1996 and continued to reflect a
profit in the quarter ending March 31, 1997.
Net Income (Loss)
The Company's net income was $15,659 for the three months ended March
31, 1997 as compared to a loss of $148,697 for the three months ended March 31,
1996. This improvement in earnings reflect the continued growth in the level
of earning assets since the Bank commenced operations. The level of average
earning assets grew from $18,792,759 for the quarter ended March 31, 1996 to
$34,801,434 for the quarter ended March 31, 1997. This reflects an 85.2%
increase in the level average earning assets for the two periods. In addition
net interest margin improved from 3.94% to 4.36% for the quarters ended March
31, 1996 and 1997, respectively. Non-interest income increased 141.4% to
$45,772 for the quarter ended March 31, 1997 as compared to $18,961 for the
quarter ended March 31, 1996. During these same periods non-interest expense
increased 16.0% to $367,000 for the three months ended March 31, 1997 as
compared to $316,393 for the three months ended March 31, 1996.
Net Interest Income
The table on page 12 shows yield and rate data for interest-bearing
balance sheet components during the three month periods ended March 31, 1997
and 1996, along with average balances and the related interest income and
interest expense amounts.
Net interest income was $373,887 during the three months ended March
31, 1997 as compared to $184,735 for the three months ended March 31, 1996.
The net interest margin was 4.36% for the three months ended March 31, 1997 as
compared to 3.94% for the three months ended March 31, 1996. This improvement
of net interest income is a result of the increase of the level of earning
assets as well as the change in the mix of earning assets. For the quarter
ended March 31, 1996 average loans accounted for 31.5% of earning assets
whereas for the quarter ended March 31, 1997 they represented 50.7% of earning
assets. Loans typically provide a higher yield then the Banks alternative uses
of these funds such as securities and short-term overnight investments.
Interest income during the three months ended March 31, 1997 was $653,257 as
compared to $325,278 for the three months ended March 31, 1996. The average
yield on earning assets during
<PAGE> 9
ITEM 2. CONTINUED PAGE 2
the first quarter of 1997 was 7.61% as compared to 6.94% during the same period
of 1996. The largest component of interest income for the three months ended
March 31, 1997 was interest on loans and amounted to $411,224 as compared to
$141,762 for the comparable prior year period. The overall yield on loans was
9.61% for the three months ended March 31, 1996 as compared to 9.45% for the
three months ended March 31, 1997. The investment portfolio income increased
$42,120 or 27.8% to $193,794 for the period ended March 31, 1997 as compared to
$151,674 for the three months ended March 31, 1996. The increase in investment
portfolio income is a result of the average investment portfolio balance being
$2,940,829 greater for the period ended March 31, 1997 as compared to the same
period in the prior year. Interest on overnight federal funds sold and
securities purchased under agreements to resell increased $16,397 or 51.5% to
$48,239 for the period ended March 31, 1997 as compared to $31,842 for the
period ended March 31, 1996. Average short term overnight fund balances were
56.2% greater during the three months ended March 31, 1997 as compared to the
same period in the prior year.
Interest expense during the three months ended March 31, 1997, was $279,370
with an average rate paid on interest- bearing liabilities of 4.25% as compared
to $140,543 and 4.37% during the three months ended March 31, 1996. The
primary reason for the increase in interest expense was that average
interest-bearing liabilities were $13,737,795 greater for the three months
ended March 31, 1997 as compared to the three months ended March 31, 1996.
Provision and Allowance for Loan Losses
The provision for loan losses was $37,000 and $36,000 for three months
ending March 31, 1997 and 1996, respectively and reflects 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 1.17% at March 31, 1997. The Company had no nonperforming
loans at March 31, 1997. Charge-offs during three months ended March 31, 1997,
amounted to $6,427. Loans past due greater than 30 days amounted to $3,000 and
there were no loans greater than 60 days past due at March 31, 1997.
Noninterest Income and Expense
Noninterest income during the three months ended March 31, 1997, was
$45,772 as compared to $18,961 for the three months ended March 31, 1996. This
increase was primarily a result of increased income from deposit service
charges of $23,634 (229.7%) due to the increase deposit balances during the
comparable periods.
Noninterest expense amounted to $367,000 as compared to $316,393
during the three months March 31, 1997 and 1996, respectively. Salary and
employee benefits increased $28,207 or 16.4 % in the first quarter of 1997 as
compared to the first quarter 1996. This increase results
<PAGE> 10
ITEM 2. CONTINUED PAGE 3
from normal merit increases as well as the addition of one full time
equivalent employee during the first quarter of 1997 as compared to the first
quarter of 1996. Occupancy expense decreased from $40,971 for the quarter
ended March 31, 1996 to $28,889 for the first quarter of 1997. This decrease
is a result of reduced cost related to the move in the Lexington office to the
permanent facility. During the first quarter of 1996 the cost of the temporary
facility were being depreciated over a short time period and resulted in higher
depreciation expense during that period. Equipment expense increased from
$23,497 for the three months ended March 31, 1996 to $31,957 for the three
months ended March 31, 1997. This increase is primarily due to increased
maintenance contract expense of approximately $7,500 on computer hardware and
software equipment which was initially under warranty for the first twelve
months after being purchased. Marketing and public relations expense increased
by $7,210 or 77.9% in the quarter ended March 31, 1997 as compared to the
comparable quarter in the prior year. This increase is a result of planned
increases in advertising and marketing during the Bank's second full year of
operations. Other non-interest expense increased $18,812 or 26.5 % in the
quarter ended March 31, 1997 compared to the same period in the prior year. An
increase in computer service bureau expense of $13,695 and correspondent bank
charges of $2,301 account for the majority of the increase in other
non-interest expense. Both of these expense categories are directly related to
the numbers of accounts and the volume of activity, and have increased due to
the growth of the Bank for the three months ended March 31, 1997 as compared to
the same period in the prior year.
Financial Position
Assets totaled $39,721,218 at March 31, 1997 as compared to $38,129,241
at December 31, 1996 an increase of $1,591,977 (4.2%). Loans grew by $3,848,157
during the three months ended March 31, 1997 from $15,714,144 to $19,531,728.
This loan growth was funded by growth in deposits of $1,560,692 (5.1%) from
$30,900,824 at December 31, 1996 to $32,461,516 at March 31, 1997. The balance
of the loan growth was funded by a decrease in federal funds sold and
securities purchased under agreements to resell of $2,586,079 from December 31,
1996 to March 31, 1997. The loan to deposit ratio at March 31, 1997 was 60.2%
as compared to 50.9% at December 31, 1996. 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 $541,652
during the three months ended March 31, 1997.
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 32.5% of total assets at March 31, 1997.
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
<PAGE> 11
ITEM 2. CONTINUED PAGE 4
and short term liquidity needs successfully. These needs include the ability
to respond to short-term demand for funds caused by the withdrawal of deposits,
maturity of repurchase agreements, extensions of credit and for the payment of
operating expenses. Sources of liquidity in addition to deposit gathering
activities include maturing loans and investments, purchase of federal funds
from other financial institutions and selling securities under agreements to
repurchase. The Company monitors closely the level of large certificates of
deposits in amounts of $100,000 or more as they tend to be extremely sensitive
to interest rate levels, and thus less reliable sources of funding for
liquidity purposes. At March 31, 1997 the amount of certificates of deposits
of $100,000 or more represented 19.1% of total deposits. These deposits are
issued to local customers many of which have other product relationships with
the Bank and none are brokered deposits. Management is not aware of any
trends, events or uncertainties that may result in a significant adverse effect
on the Company's liquidity position.
The capital needs of the Company have been primarily met to date through the
initial common stock offering which raised approximately $6.8 million. This
capital was sufficient to fund the activities of the Bank during the initial
stages of operations and has allowed the Bank to remain a "well capitalized"
institution until sufficient income was generated from operations to fund its
activities on an on-going basis. Shareholders' equity was 14.5% of total
assets at March 31, 1997 as compared to 15.2% at December 31, 1996. The Bank's
risked-based capital ratios of Tier 1, total capital and leverage ratio were
19.9%, 20.8 and 12.9%, respectively at March 31, 1997. 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>
Three months ended March 31, 1997 Three months ended March 31, 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 $17,655,270 411,224 9.45% $ 5,916,120 $141,762 9.61%
Securities:
Taxable 13,454,393 193,794 5.84% 10,513,564 151,674 5.79%
Federal funds sold and securities purchased
under agreements to resell 3,691,771 48,239 5.30% 2,363,075 31,842 5.40%
------------------------------ ------------------------------------
Total earning assets 34,801,434 653,257 7.61% 18,792,759 325,278 6.94%
------------------------------ ------------------------------------
Cash and due from banks 1,249,595 615,986
Premises and equipment 2,619,889 1,612,987
Other assets 309,308 240,703
Allowance for loan losses (212,511) (89,563)
----------- -----------
Total assets $38,767,715 $21,172,872
=========== ===========
LIABILITIES
Interest-bearing liabilities
Interest-bearing transaction accounts 3,258,793 12,041 1.50% 1,368,025 4,738 1.39%
Money market accounts 2,601,660 25,344 3.95% 1,518,846 12,360 3.26%
Savings deposits 6,255,673 59,556 3.86% 1,985,914 17,997 3.63%
Time deposits 13,319,822 169,932 5.17% 6,905,472 93,019 5.40%
Other short term borrowings 1,200,594 12,497 4.22% 1,120,490 12,429 4.45%
------------------------------ ------------------------------------
Total interest-bearing liabilities 26,636,542 279,370 4.25% 12,898,747 140,543 4.37%
------------------------------ ------------------------------------
Demand deposits 6,099,370 2,069,705
Other liabilities 246,198 131,987
Shareholders' equity 5,785,605 6,072,433
----------- -----------
Total liabilities and shareholders' equity $38,767,715 $21,172,872
=========== ===========
Net interest spread 3.36% 2.57%
Net interest income/margin $373,887 4.36% $184,735 3.94%
======== ========
</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.
There were no matters submitted to security holders for a vote during
the three months ended March 31, 1997.
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's Common Stock (incorporated by reference to
Exhibit 4.1 to the Company's Registration Statement
No. 33-86258 on Form S-1).
<PAGE> 14
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).
10.7 Construction Agreement dated November 7, 1996 by and
between the Bank and Summerfield Associates, Inc. To
build a banking facility in Forest Acres, South
Carolina. (Incorporated by reference to the Company's
1996 Annual Report 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 March 31, 1997
<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: May 5, 1997 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 THREE MONTHS ENDED MARCH 31, 1997, CONTAINED IN FORM 10-QSB
AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FORM 10-QSB.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> MAR-31-1997
<CASH> 1,663,312
<INT-BEARING-DEPOSITS> 0
<FED-FUNDS-SOLD> 3,166,193
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 9,754,965
<INVESTMENTS-CARRYING> 2,600,011
<INVESTMENTS-MARKET> 2,545,230
<LOANS> 19,531,728
<ALLOWANCE> 231,433
<TOTAL-ASSETS> 39,721,216
<DEPOSITS> 32,461,516
<SHORT-TERM> 1,296,751
<LIABILITIES-OTHER> 208,400
<LONG-TERM> 0
0
0
<COMMON> 688,077
<OTHER-SE> 5,066,474
<TOTAL-LIABILITIES-AND-EQUITY> 39,721,216
<INTEREST-LOAN> 411,224
<INTEREST-INVEST> 193,794
<INTEREST-OTHER> 48,239
<INTEREST-TOTAL> 653,257
<INTEREST-DEPOSIT> 266,873
<INTEREST-EXPENSE> 279,370
<INTEREST-INCOME-NET> 373,887
<LOAN-LOSSES> 37,000
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 367,000
<INCOME-PRETAX> 15,659
<INCOME-PRE-EXTRAORDINARY> 15,659
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 15,659
<EPS-PRIMARY> .02
<EPS-DILUTED> 0
<YIELD-ACTUAL> 4.36
<LOANS-NON> 0
<LOANS-PAST> 0
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 200,860
<CHARGE-OFFS> 6,427
<RECOVERIES> 0
<ALLOWANCE-CLOSE> 231,433
<ALLOWANCE-DOMESTIC> 231,433
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
