UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
[ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ending June 30, 1997
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from ____________ to ______________
Commission file number 0-26314
JAMES RIVER BANKSHARES, INC.
(Exact name of registrant as specified in its charter)
VIRGINIA 54-1740210
(State of Incorporation) (I.R.S. Employer Identification No.)
101 EAST WASHINGTON STREET, SUFFOLK, VIRGINIA 23434
(Address of principal executive officers)(Zip Code)
(804) 539-0241
(Registrant's Telephone Number, Including Area Code)
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.
Yes X No
--- ---
Indicate the number of shares outstanding of each of the issuer's
classes of common stock, as of the latest practicable date. At June 30, 1997,
the issuer had 2,440,581 outstanding shares of its $5.00 par value common stock.
<PAGE>
PART 1 - FINANCIAL INFORMATION
JAMES RIVER BANKSHARES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
Note 1. Basis of Presentation
The accompanying unaudited consolidated financial statements have been
prepared in accordance with the instructions to Form 10-Q and, therefore, do not
include all of the disclosures and notes required by generally accepted
accounting principles. In the opinion of management, all adjustments (consisting
of normal recurring accruals) considered necessary for a fair presentation have
been included. The results of operations for the three month and six month
periods ended June 30, 1997 and 1996 are not necessarily indicative of results
that may be expected for the entire year or any interim period. The interim
financial statements should be read in conjunction with the December 31, 1996
Annual Report to Shareholders on Form 10-K, including the 1996 consolidated
financial statements of James River Bankshares, Inc. ("James River").
Note 2. Earnings and Dividends Per Share
Earnings per share for the six months ended June 30, 1997 and 1996 are
determined by dividing income for the periods by 2,480,309 and 2,480,605,
respectively, the weighted average number of shares of common stock and common
stock equivalents outstanding. Stock options and warrants are regarded as common
stock equivalents and are, therefore, considered in earnings per share
calculations, if dilutive. Common stock equivalents are computed using the
treasury stock method. There is no material difference between primary and
fully-diluted earnings per share.
Earnings per share for the three months ended June 30, 1997 and 1996
are determined by dividing income for the periods by 2,476,673 and 2,481,417,
respectively, the weighted average number of shares of common stock and common
stock equivalents outstanding.
Cash dividends paid in the first quarter of 1997 amounted to $.13 per
share. In the second quarter of 1997, cash dividends paid amounted to $.14 per
share. For the same period of 1996, no dividends were declared or paid in the
first quarter, but the second quarter dividend included a $.13 quarterly
dividend plus an additional $.13 in dividends paid, for a total of $.26.
<PAGE>
The Financial Accounting Standards Board recently issued Statement of
Financial Accounting Standards No. 128 entitled "Earnings Per Share," which is
effective for financial statements for both interim and annual periods ending
after December 15, 1997. Early adoption of the statement is not permitted. The
Company has applied this statement to the six month periods ended June 30, 1997
and 1996, and the year ended December 31, 1996, and has determined that the
adoption of this statement would not have a material impact on the earnings per
share calculations for these periods. After adoption, all prior period earnings
per share calculations will be restated to comply with this statement.
Note 3. Mergers and Acquisitions
During the first quarter of 1996, James River and its subsidiaries
consummated several significant transactions. First, in two separate
transactions that both closed February 29, 1996, James River merged with Bank of
Isle of Wight, a Virginia state chartered bank in Smithfield, Virginia ("Bank of
Isle of Wight") and First Colonial Bank, FSB, a federal savings bank in
Hopewell, Virginia ("First Colonial"). The merger of these two financial
institutions was treated as a pooling of interest and the historical financial
information included in the Form 10-Q is presented on that basis. Accordingly,
the consolidated financial statements of James River give effect to this merger,
and the accounts of First Colonial and Bank of Isle of Wight have been combined
with James River for all periods presented. In the aggregate, these two
transactions more than doubled James River's total assets and net loans.
Second, James River Bank, a wholly-owned subsidiary of James River,
consummated the acquisition of two branch banking offices from First Union
National Bank of Virginia on March 23, 1996, one of which is located in the City
of Franklin, Virginia, and the other of which is located in Courtland,
Southampton County, Virginia. The transaction was accounted for by the purchase
method of accounting. James River Bank assumed aggregate deposit liabilities of
approximately $34 million in connection with the two branch acquisitions. In
addition, equipment valued at $210,000 and land and buildings valued at $825,000
were purchased. In connection with the acquisition, intangible assets of
$2,816,914 were capitalized including goodwill, an inseparable component of core
deposit intangible, and other costs incurred directly related to the
acquisition. These costs are being amortized on an accelerated method over
fifteen years.
Note 4. Reclassifications
Certain amounts in the consolidated Statements of Income for 1996 have
been reclassified to conform with classifications used for 1997. These changes
in classification had no effect on net income or retained earnings.
<PAGE>
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
JAMES RIVER BANKSHARES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
<TABLE>
<CAPTION>
June 30, December 31,
1997 1996
--------- --------
(unaudited)
<S> <C>
ASSETS
Cash and due from banks $ 13,487 $ 16,675
Interest bearing deposits with banks 737 444
Federal funds sold 3,404 3,327
Securities available-for-sale, at fair value (amortized cost
$79,171 on June 30, 1997 and $91,032 on
December 31, 1996) 79,296 91,269
Securities held-to-maturity, at amortized cost (fair value
$11,524 on June 30, 1997 and $12,243 on December 31, 1996)
11,544 12,217
Loans, net of allowance for loan losses 259,454 239,721
Loans held for sale, net 427 1,192
Premises and equipment, net 8,197 8,324
Accrued interest receivable 3,040 3,124
Intangible assets, net 2,656 2,750
Deferred income taxes 628 590
Other assets 2,182 1,975
-------- --------
Total Assets $385,052 $381,608
======== ========
LIABILITIES
Non-interest bearing deposits 39,931 42,799
Interest bearing deposits 304,705 299,533
-------- --------
Total deposits 344,636 342,332
Accrued interest payable 744 612
Accounts payable and other liabilities 1,373 1,061
-------- --------
Total Liabilities 346,753 344,005
-------- --------
SHAREHOLDERS' EQUITY
Common stock, $5 par, 10,000,000 shares authorized, 2,440,581 issued and
outstanding in 1997 and 2,457,950
in 1996 12,203 12,290
Additional paid-in capital 3,536 3,521
Retained earnings 22,470 21,629
Net unrealized gain (loss) on securities available-for-sale 90 163
-------- --------
Total Shareholders' Equity 38,299 37,603
-------- --------
Total Liabilities and Shareholders' Equity $385,052 $381,608
======== ========
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
JAMES RIVER BANKSHARES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
(Dollars in thousands, except per share data)
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
-------------------------------- -----------------------------
June 30, June 30, June 30, June 30,
1997 1996 1997 1996
------------ ------------ ------------ ------------
<S> <C>
INTEREST INCOME
Loans $ 5,892 $ 4,900 $ 11,411 $ 9,721
Investment securities:
Taxable 1,109 1,387 2,352 2,357
Exempt from federal income taxes 291 330 608 661
Federal funds sold and other 137 149 212 302
----------- ----------- ----------- -----------
Total Interest Income 7,429 6,766 14,583 13,041
----------- ----------- ----------- -----------
INTEREST EXPENSE
Deposits 3,526 3,426 6,993 6,543
Federal funds purchased 13 14 32 14
----------- ----------- ----------- -----------
Total Interest Expense 3,539 3,440 7,025 6,557
----------- ----------- ----------- -----------
Net Interest Income 3,890 3,326 7,558 6,484
Provision for loan losses 116 78 216 205
----------- ----------- ----------- -----------
Net Interest Income after provision for loan losses 3,774 3,248 7,342 6,279
----------- ----------- ----------- -----------
NON-INTEREST INCOME
Service charges on deposit accounts 238 265 528 525
Other fees and commissions 65 53 131 95
Net realized gains (losses) on disposition of securities (1) 12 66 17
Other income 71 69 152 112
----------- ----------- ----------- -----------
Total Non-Interest Income 373 399 877 749
----------- ----------- ----------- -----------
NON-INTEREST EXPENSE
Salaries and employee benefits 1,573 1,285 3,173 2,476
Occupancy 179 170 371 333
Equipment 224 164 450 291
Merger -- -- -- 530
Directors' Fees 94 91 178 173
Deposit insurance premiums 27 79 52 157
Other 801 679 1,532 1,235
----------- ----------- ----------- -----------
Total Non-Interest Expense 2,898 2,468 5,756 5,195
----------- ----------- ----------- -----------
Income before income taxes 1,249 1,179 2,463 1,833
Provision for income taxes 341 347 679 543
----------- ----------- ----------- -----------
Net Income $ 908 $ 832 $ 1,784 $ 1,290
=========== =========== =========== ===========
Earnings Per Common and Common Equivalent Share $ 0.37 $ 0.33 $ 0.72 $ 0.52
=========== =========== =========== ===========
Cash Dividends Paid per Common Share $ 0.14 $ 0.26 $ 0.27 $ 0.26
=========== =========== =========== ===========
Weighted Average Number of Shares Outstanding 2,476,673 2,481,417 2,480,309 2,480,605
=========== =========== =========== ===========
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
JAMES RIVER BANKSHARES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
(Dollars in thousands)
<TABLE>
<CAPTION>
Six Months Ended
-----------------------
June 30, June 30,
1997 1996
--------- --------
<S> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net income $ 1,784 $ 1,290
Adjustments to reconcile to net cash provided
by operating activities:
Provision for loan and other real estate losses 216 235
Depreciation and amortization 608 231
Amortization of bond (discounts) and premiums 25 (40)
Gain on disposition of securities (66) (17)
Changes in:
Loans held for sale 765 722
Interest receivable 84 (240)
Other assets 125 (1,415)
Interest payable 132 266
Other liabilities 312 (175)
-------- --------
Net cash provided by operating activities 3,985 857
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from dispositions of securities - available-for-sale 8,925 7,811
Proceeds from maturities of securities - available-for-sale 5,547 8,981
Proceeds from maturities of securities - held-to-maturity 669 1,793
Purchase of securities - available-for-sale (2,566) (44,511)
Purchases of premises and equipment (282) (1,240)
Net increase in loans (20,385) (23,880)
Net cash and cash equivalents received in acquisition
of branches -- 30,484
-------- --------
Net cash used by investing activities (8,092) (20,562)
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES
Net increase (decrease) in non-interest bearing deposits (2,868) 1,077
Net increase in interest bearing deposits 5,172 9,313
Issuance of stock 20 16
Cash dividends paid (661) (637)
Cancellation of shares (374) --
Purchase of fractional shares -- (5)
-------- --------
Net cash provided by financing activities 1,289 9,764
-------- --------
Net decrease in cash and cash equivalents $ (2,818) $ (9,941)
CASH AND CASH EQUIVALENTS
Beginning 20,446 24,096
-------- --------
Ending $ 17,628 $ 14,155
======== ========
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Cash payments for:
Interest paid $ 6,893 $ 6,291
======== ========
Income taxes $ 591 $ 664
======== ========
SUPPLEMENTAL SCHEDULE OF NONCASH TRANSACTIONS
Real estate acquired in settlement of loans $ 436 $ --
======== ========
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
JAMES RIVER BANKSHARES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY
(UNAUDITED)
(Dollars in thousands)
For The Six Months Ended June 30, 1997
<TABLE>
<CAPTION>
Unrealized
Gain (Loss) on
Shares of Additional Securities
Common Common Paid-in Retained Available-
Stock Stock Capital Earnings For-Sale Total
---------- ---------- ---------- ---------- ---------- ----------
<S> <C>
Balance - December 31, 1996 2,457,950 $ 12,290 $ 3,521 $ 21,629 $ 163 $ 37,603
Net Income -- -- -- 1,784 -- 1,784
Common stock issued 983 5 15 -- -- 20
ESOP Termination (18,352) (92) (282) (374)
Cash dividends declared ($0.27 per share) -- -- -- (661) -- (661)
Change in unrealized gain (loss) on
securities available-for-sale, net of taxes -- -- -- -- (73) (73)
---------- ---------- ---------- ---------- ---------- ----------
Balance - June 30, 1997 2,440,581 $ 12,203 $ 3,536 $ 22,470 $ 90 $ 38,299
========== ========== ========== ========== ========== ==========
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
Item 2. Management's Discussion and Analysis
of Financial Condition and Results of Operations
This Form 10-Q contains forward looking statements that involve risks
and uncertainties. James River's actual results could differ materially from
those anticipated in these forward looking statements as a result of certain
factors, many of which are beyond management's control. The following discussion
should be read in conjunction with the unaudited consolidated financial
statements included in Item 1. of this Form 10-Q.
FINANCIAL CONDITION
Assets
Total assets of James River at June 30, 1997 were $385.1 million
compared to $381.6 million at December 31, 1996, an increase of $3.4 million or
0.9%. With an increase in net loans of $19.0 million during the first six months
of 1997, securities investments decreased $12.6 million, from $103.5 million at
December 31, 1996 to $90.8 million at June 30, 1997. Earning assets increased
$6.6 million, or 1.9%, during the same period.
Liabilities
Deposits of James River at June 30, 1997 were $344.6 million compared
to $342.3 million at December 31, 1996, an increase of 0.7% or $2.3 million.
Non-performing Assets
Non-performing assets of James River comprise delinquent loans on which
the accrual of income has ceased, or is being fully reserved, and property
acquired through foreclosure or repossession. Non-performing assets totaled $1.2
million on June 30, 1997, compared to $462,000 on December 31, 1996. On June 30,
1997, non-accrual loans totaled $669,000, with $373,000 secured by real estate.
Non-accrual loans totaled $291,000 on December 31, 1996, of which $203,000 was
secured by real estate. Foreclosed real estate accounted for $578,000 of
non-performing assets as of June 30, 1997 compared to $171,000 as of December
31, 1996. Management does not anticipate any material loss relating to
non-performing assets.
Loans past due 90 days or more and still accruing were $482,000 and
$857,000 for June 30, 1997 and December 31, 1996, respectively. Of these loans,
loans secured by real estate totaled $225,000 on June 30, 1997 and $675,000 on
December 31, 1996.
<PAGE>
The recorded investment in impaired loans requiring an allowance for
loan losses as determined in accordance with Statement of Financial Accounting
Standards ("SFAS") No. 114, "Accounting by Creditors for Impairment of a Loan,"
as amended by SFAS No. 118, "Accounting by Creditors for Impairment of a
Loan-Income Recognition and Disclosures," was $1.7 million and $3.1 million at
June 30, 1997, and December 31, 1996, respectively. The portion of the allowance
for loan losses allocated to to the impaired loan balance was $249,000 and
$558,000 at June 30, 1997, and December 31, 1996, respectively.
No additional provisions, other than ordinary provisions, are being
made to the allowance for loan losses.
The allowances for possible losses on loans are maintained by James
River at what management considers to be a realistic level consistent with the
level and type of loans, and taking into consideration the non-accrual and past
due loans detailed above.
James River's allowance for loan losses of $3.3 million was 1.26% of
total loans on June 30, 1997. On December 31, 1996, the allowance for loan
losses of $3.2 million was 1.30% of total loans. During the first six months of
1997, total loans increased $19.1 million or 7.8%.
<PAGE>
RESULTS OF OPERATIONS
Net Operating Results
For the quarter ended June 30, 1997, James River earned net income of
$908,000, or $0.37 per share, compared to $832,000, or $0.33 per share, for the
same period of 1996, a 9.1% increase. Return on average assets and return on
average equity were .94% and 9.58%, respectively, in the second quarter of 1997
compared to .91% and 9.16% in the comparable period in 1996.
For the first six months of 1997, James River earned net income of $1.8
million compared to $1.3 million for the same period of 1996, a 38.3% increase.
The increase was primarily due to the non-recurring, non-deductible merger
expenses in the first quarter of 1996 of $530,000, which were incurred in
connection with James River's acquisition of Bank of Isle of Wight and First
Colonial Bank. Return on average assets and return on average equity were .93%
and 9.42%, respectively, in the first six months of 1997 compared to .75% and
7.07% in the comparable period in 1996.
Net Interest Income
Net interest income during the quarter ended June 30, 1997 increased
$564,000 to $3.9 million, up 17.0% from the $3.3 million for the quarter ended
June 30, 1996. The increase in net interest income was largely due to an
increase in loans of $30.7 million from June 30, 1996 to June 30, 1997. With
rate changes and increased volume, interest and fee income on loans increased
20.2% for the second quarter of 1997 to $5.9 million, $992,000 more than the
$4.9 million earned in the same period of 1996. During the second quarter of
1997, income on investment securities decreased $316,000, or 18.4%, to $1.4
million, compared to the second quarter of 1996. Interest expense on deposits
increased for the second quarter from $3.4 million in 1996 to $3.5 million for
the same period in 1997, a 2.9% increase in the cost of deposits.
For the first six months of 1997, net interest income increased $1.1
million, or 16.6%, over the same period in 1996. This increase was primarily due
to the increased volume of loans, with interest and fees on loans increasing to
$11.4 million in 1997, up $1.7 million, or 17.4%, from the $9.7 million for the
same period in 1996. For the same time period in 1997, interest expense on
deposits increased $450,000, or 6.9%, over that of 1996.
Non-Interest Income
Non-interest income during the quarter ended June 30, 1997 decreased by
$27,000, or 6.7%, compared to the same period during 1996. This decrease was
attributable to a $27,000 decrease in income from service charges on deposit
accounts at June 30, 1997 compared to the same period in 1996.
<PAGE>
For the six months ending June 30, 1997, non-interest income was
$877,000, up $128,000, or 17.0%, compared to the respective period in 1996. The
increase was predominately attributable to a $49,000 increase in gains on the
sale of investments.
Non-Interest Expense
Non-interest expenses during the second quarter of 1997 increased by
$430,000 compared to 1996, an increase of 17.4%. Personnel expense for the
second quarter of 1997 increased $288,000, primarily due to the staffing of five
additional branch banking offices and a new electronic data processing center.
Non-interest expenses during the six months ended June 30, 1997
increased $561,000, or 10.8%, compared to 1996. While James River incurred a
$530,000 non-recurring, non-deductible merger expense in the first quarter of
1996, personnel expense for the first six months of 1997 increased $697,000, or
28.2%, as previously discussed. In addition, occupancy expense and equipment
expense increased $38,000 and $159,000, respectively, due to the addition of new
branch offices and the data processing center.
LIQUIDITY AND CAPITAL RESOURCES
Liquidity and interest sensitivity
Liquidity represents an institution's ability to meet present and
future financial obligations through either the sale or maturity of existing
assets or the acquisition of additional funds through liability management.
Liquid assets include cash, interest bearing deposits with banks, federal funds
sold, investments, and loans maturing within one year. As a result of James
River's management of liquid assets and the ability to generate liquidity
through liability funding, management believes that James River maintains
overall liquidity sufficient to satisfy its depositors' requirements and meet
its customers' credit needs.
At June 30, 1997, James River had $29.0 million in undisbursed loan
commitments and expects to have sufficient funds available to meet current loan
origination commitments. Funding is expected to be in the normal course of
business primarily through loan repayments, prepayments, and deposit growth. As
additional funding, James River holds $90.8 million in investment securities. Of
this amount, only $11.5 million is classified as held-to-maturity and is not
readily available for sale. Of the $79.3 million in available-for-sale, $6.9
million matures in less than one year, and an additional $38.6 million matures
between 1 and 5 years.
<PAGE>
James River has no long-term debt. Almost the entire deposit base is
made up of core deposits with only 10.3% of total deposits composed of
certificates of deposit of $100,000 and over.
CAPITAL RESOURCES
Total shareholders' equity amounted to $38.3 million at June 30, 1997
compared to $37.6 million at December 31, 1996. James River's leverage ratio was
9.30%, with tier 1 risk-based capital ratio of 14.36% and a total risk-based
capital ratio of 15.65%.
<PAGE>
PART II - OTHER INFORMATION
Item 1 . Legal Proceedings
None of James River or its subsidiaries is involved in any pending legal
proceedings other than nonmaterial legal proceedings occurring in the
ordinary course of business.
Item 2. Changes in Securities - None
Item 3. Defaults upon Senior Securities - None
Item 4. Submission of Matters to a Vote of Securities Holders - See Insert 1
attached
Item 5. Other Information - None
Item 6. Exhibits and reports on Form 8-K
(a) Exhibits - Financial Data Schedule, Exhibit 27
(b) Reports on Form 8-K - None
<PAGE>
INSERT 1
James River held its 1997 Annual Meeting of Shareholders on April 24, 1997. At
the Annual Meeting, the following matters were acted upon by shareholders.
1. Election of directors. The following persons were elected as directors
of James River to serve a one year term, with the votes For and
Withheld as indicated below.
DIRECTOR FOR WITHHELD
Harold U. Blythe 1,759,092 4,613
James E. Butler, Jr. 1,759,042 4,664
Bruce B. Gray 1,758,872 4,834
Elmon T Gray 1,759,042 4,664
G. P. Jackson 1,759,042 4,664
Ben P. Kanak 1,753,686 10,020
Glenn T. McCall 1,759,072 4,634
John A. Ramsey, Jr. 1,759,028 4,678
Robert E. Spencer, Jr. 1,759,092 4,614
E. V. Stephenson, Jr. 1,759,042 4,664
James C. Stewart 1,759,072 4,634
2. Ratification of Goodman & Company, L.L.P. as independent auditors for
1997.
FOR AGAINST ABSTAIN
1,761,418 2,288
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
JAMES RIVER BANKSHARES, INC.
Date: August 11, 1997 /s/ Glenn T. McCall
--------------- --------------------
Glenn T. McCall, Sr. Vice President
and Chief Financial Officer
<TABLE> <S> <C>
<ARTICLE> 9
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> JUN-30-1997
<CASH> 13,487
<INT-BEARING-DEPOSITS> 737
<FED-FUNDS-SOLD> 3,404
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 79,296
<INVESTMENTS-CARRYING> 11,544
<INVESTMENTS-MARKET> 11,524
<LOANS> 263,200
<ALLOWANCE> 3,319
<TOTAL-ASSETS> 385,052
<DEPOSITS> 344,636
<SHORT-TERM> 0
<LIABILITIES-OTHER> 2,117
<LONG-TERM> 0
0
0
<COMMON> 12,203
<OTHER-SE> 26,096
<TOTAL-LIABILITIES-AND-EQUITY> 385,052
<INTEREST-LOAN> 11,411
<INTEREST-INVEST> 2,960
<INTEREST-OTHER> 212
<INTEREST-TOTAL> 14,583
<INTEREST-DEPOSIT> 6,993
<INTEREST-EXPENSE> 7,025
<INTEREST-INCOME-NET> 7,558
<LOAN-LOSSES> 216
<SECURITIES-GAINS> 66
<EXPENSE-OTHER> 5,756
<INCOME-PRETAX> 2,463
<INCOME-PRE-EXTRAORDINARY> 2,463
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,784
<EPS-PRIMARY> 0.72
<EPS-DILUTED> 0.72
<YIELD-ACTUAL> 9.42
<LOANS-NON> 669
<LOANS-PAST> 482
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 3,176
<CHARGE-OFFS> 135
<RECOVERIES> 62
<ALLOWANCE-CLOSE> 3,319
<ALLOWANCE-DOMESTIC> 0
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 3,319
</TABLE>
