FORM 10 - Q
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
QUARTERLY REPORT UNDER SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For quarter ended September 30, 2001 Commission file number: 33-18888
------------------ --------
ORRSTOWN FINANCIAL SERVICES, INC.
---------------------------------
(Exact name of registrant as specified in its charter)
Commonwealth of Pennsylvania 23-2530374
---------------------------- ----------
(State or other jurisdiction of incorporation (I.R.S. Employer
or organization) Identification No.)
77 East King Street
P.O. Box 250, Shippensburg, Pennsylvania 17257
- ---------------------------------------- -----
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (717) 532-6114
--------------
Indicate by check mark whether the registrant (1) has filed all reports required
to be filled by Section 13 or 15 (d) of the Securities Exchange Act
of 1934 during the preceding 12 months (or for 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
-----
Class Outstanding at November 1, 2001
----- -------------------------------
(Common Stock, no par value) 2,377,340
ORRSTOWN FINANCIAL SERVICES, INC.
INDEX
Page
Part I - FINANCIAL INFORMATION
Item 1. Financial statements ( unaudited )
Condensed consolidated balance sheets - September 30, 2001
and December 31, 2000 3
Condensed consolidated statements of income - Three months
ended September 30, 2001 and 2000 4
Condensed consolidated statements of income - Nine months
ended September 30, 2001 and 2000 5
Condensed consolidated statements of comprehensive income -
Three months & Nine months ended September 30, 2001 and 2000 6
Condensed consolidated statements of cash flows - Nine months
ended September 30, 2001 and 2000 7
Notes to condensed consolidated financial statements 8-9
Item 2. Management's discussion and analysis of financial condition
and results of operations 10-14
PART II - OTHER INFORMATION
Other Information 16
Signatures 17
Exhibits 18
PART I - FINANCIAL INFORMATION
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
ORRSTOWN FINANCIAL SERVICES, INC.
AND ITS WHOLLY - OWNED SUBSIDIARY, ORRSTOWN BANK
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
September 30, 2001 December 31, 2000*
(Unaudited)
ASSETS (000 Omitted)
Cash and due from banks $ 9,128 $ 11,021
Interest - bearing deposits with banks 739 172
Federal funds sold 26,817 3,049
Securities available for sale 66,714 69,919
Federal Home Loan Bank, Federal Reserve and
Atlantic Central Bankers Bank Stock, at cost
which approximates market value 1,703 2,134
Loans 247,889 209,181
Allowance for loan losses (2,900) (2,691)
--------- ---------
Net Loans 244,989 206,490
Bank premises and equipment, net 8,995 9,269
Accrued Interest receivable 1,773 2,016
Cash value-life insurance 5,813 5,636
Other assets 2,273 2,197
--------- ---------
Total assets $ 368,944 $ 311,903
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES
Deposits:
Noninterest bearing $ 33,590 $ 31,716
Interest bearing 236,016 210,292
--------- ---------
Total deposits 269,606 242,008
Federal funds purchased and other short term
borrowed funds 35,804 18,426
Long term borrowed funds 29,200 21,515
Accrued interest payable 399 614
Other liabilities 2,878 2,666
--------- ---------
Total liabilities 337,887 285,229
--------- ---------
STOCKHOLDERS' EQUITY
Common stock, no par value - $ .1041 stated
value per share at September 30, 2001 and
December 31, 2000, 10,000,000 shares authorized
with 2,370,713 shares issued at September 30,
2001 and 2,240,744 issued at December 31, 2000 247 233
Additional paid - in capital 24,787 19,360
Retained earnings 4,644 6,619
Accumulated other comprehensive income 1,379 462
--------- ---------
Total stockholders' equity 31,057 26,674
--------- ---------
Total liabilities and stockholders'
equity $ 368,944 $ 311,903
========== =========
* Condensed from audited financial statements
The accompanying notes are an integral part of these condensed financial
statements.
Page 3
ORRSTOWN FINANCIAL SERVICES, INC.
AND ITS WHOLLY - OWNED SUBSIDIARY, ORRSTOWN BANK
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
Three Months Ended September 30, 2001 and 2000
(UNAUDITED)
2001 2000
(Unaudited) (Unaudited)
(000 Omitted)
Interest Income
Interest and fees on loans $ 5,047 $ 4,352
Interest on federal funds sold 129 131
Interest and dividends on investment securities 1,026 1,091
Interest income on deposits with banks 6 3
----------- -----------
Total interest income 6,207 5,577
Interest Expense
Interest on deposits 2,096 2,025
Interest on borrowed money 585 690
----------- -----------
Total interest expense 2,681 2,715
----------- -----------
Net interest income 3,526 2,862
Provision for loan losses 170 75
----------- -----------
Net interest income after provision for loan
losses 3,356 2,787
----------- -----------
Other Income
Service charges on deposits 478 291
Other service charges 54 146
Trust department income 310 263
Brokerage Income 75 86
Other income 85 80
Net gains on available for sale securities (9) 36
----------- -----------
Total Other income 992 902
Other Expenses
Salaries and employee benefits 1,351 1,220
Net occupancy and equipment expenses 416 423
Other operating expenses 696 677
----------- -----------
Total other expense 2,464 2,320
Income before income tax 1,884 1,369
Income tax expenses 501 342
----------- -----------
Net income $ 1,383 $ 1,027
=========== ===========
Weighted average number of shares outstanding 2,369,508 2,232,240
Net income per share $ 0.58 $ 0.44
Cash dividends declared per share $ 0.15 $ 0.13
The accompanying notes are an integral part of these condensed financial
statements.
Page 4
ORRSTOWN FINANCIAL SERVICES, INC.
AND ITS WHOLLY - OWNED SUBSIDIARY, ORRSTOWN BANK
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
Nine Months Ended September 30, 2001 and 2000
(UNAUDITED)
2001 2000
(Unaudited) (Unaudited)
(000 Omitted)
Interest Income
Interest and fees on loans $ 14,517 $ 12,433
Interest on federal funds sold 316 192
Interest and dividends on investment securities 3,177 3,249
Interest income on deposits with banks 12 14
---------- ----------
Total interest income 18,020 15,888
Interest Expense
Interest on deposits 6,444 5,538
Interest on borrowed money 1,766 1,941
---------- ----------
Total interest expense 8,210 7,479
---------- ----------
Net interest income 9,810 8,409
Provision for loan losses 290 225
---------- ----------
Net interest income after provision for loan
losses 9,520 8,184
---------- ----------
Other Income
Service charges on deposits 1,390 848
Other service charges 508 410
Trust department income 918 793
Brokerage Income 205 271
Other income 249 246
Net gains on available for sale securities 22 33
---------- ----------
Total Other income 3,292 2,601
Other Expenses
Salaries and employee benefits 3,849 3,537
Net occupancy and equipment expenses 1,255 1,133
Other operating expenses 2,472 1,983
---------- ----------
Total other expense 7,576 6,653
Income before income tax 5,236 4,132
Income tax expenses 1,437 1,082
---------- ----------
Net income $ 3,799 $ 3,050
========== ==========
Weighted average number of shares outstanding 2,363,530 2,226,209
Net income per share $ 1.61 $ 1.30
Cash dividends declared per share $ 0.44 $ 0.40
The accompanying notes are an integral part of these condensed financial
statements.
Page 5
ORRSTOWN FINANCIAL SERVICES, INC.
AND ITS WHOLLY - OWNED SUBSIDIARY, ORRSTOWN BANK
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Three Months Ended September 30, 2001 and 2000
(UNAUDITED)
2001 2000
(000 Omitted)
Net Income $ 1,383 $ 1,027
Other comprehensive income, net of tax
Unrealized gain (loss) on investment securities
available for sale 722 463
--------- --------
Comprehensive Income $ 2,105 $ 1,490
========= =========
The accompanying notes are integral part of these condensed financial
statements.
*******************************************************************************
ORRSTOWN FINANCIAL SERVICES, INC.
AND ITS WHOLLY - OWNED SUBSIDIARY, ORRSTOWN BANK
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Nine Months Ended September 30, 2001 and 2000
(UNAUDITED)
2001 2000
(000 Omitted)
Net Income $ 3,799 $ 3,050
Other comprehensive income, net of tax
Unrealized gain (loss) on investment securities
available for sale 917 352
--------- ---------
Comprehensive Income $ 4,716 $ 3,402
========= =========
The accompanying notes are integral part of these condensed financial
statements.
Page 6
ORRSTOWN FINANCIAL SERVICES, INC.
AND ITS WHOLLY - OWNED SUBSIDIARY, ORRSTOWN BANK
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
Nine Months Ended September 30, 2001 and 2000
(UNAUDITED)
2001 2000
(Unaudited) (Unaudited)
(000 Omitted)
Cash flows from operating activities:
Net income $ 3,799 $ 3,050
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization 569 516
Provision for loan losses 290 225
Other, net (485) 986
-------- --------
Net cash provided by operating activities 4,173 4,777
Cash flows from investing activities:
Net increase in interest bearing
deposits with banks (567) (135)
Purchase of available for sale securities (29,374) (15,520)
Sale of Federal Home Loan Bank Stock 431 (625)
Sales and maturities of available for sale securities 33,968 9,740
Net (increase) in loans (38,789) (17,046)
Purchases of bank premises and equipment (295) (2,961)
-------- --------
Net cash (used) by investing activities (34,626) (26,547)
-------- --------
Cash flows from financing activities:
Net increase in deposits 27,598 26,217
Cash dividends paid (1,031) (935)
Proceeds from sale of stock 718 595
Cash paid in lieu of fractional shares (20) 0
Net increase in short term purchased funds 17,378 5,884
Proceeds in long term debt 8,000 0
Payments on long term debt (316) (6)
-------- --------
Net cash provided by financing activities 52,328 31,755
-------- --------
Net increase (decrease) in cash and cash equivalents 21,875 9,985
Cash and cash equivalents at beginning of period 14,070 8,585
-------- --------
Cash and cash equivalents at end of period $ 35,945 $ 18,570
======== ========
Supplemental disclosure of cash flows information:
Cash paid during the period for:
Interest $ 8,412 $ 7,403
Income Taxes 1,500 1,166
Supplemental schedule of noncash investing and financing activities:
Unrealized gain (loss) on investments available for
sale (net of deferred taxes of $470 and $181 at
September 30, 2001 and 2000, respectively) 917 352
The accompanying notes are an integral part of these condensed financial
statements.
Page 7
ORRSTOWN FINANCIAL SERVICES, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
September 30, 2001
(UNAUDITED)
Review of Interim Financial Statements
The condensed consolidated financial statements as of and for the three
and nine months ended September 30, 2001 and 2000 have been reviewed by
independent certified public accountants. Their report on their review
is attached as Exhibit 99 to this 10-Q.
NOTE 1. Basis of Presentation
The financial information presented at and for the three months ended
and nine months ended September 30, 2001 and 2000 is unaudited.
Information presented at December 31, 2000 is condensed from audited
year-end financial statements. However, unaudited information reflects
all adjustments (consisting solely of normal recurring adjustments)
that are, in the opinion of management, necessary for a fair
presentation of the financial position, results of operations and cash
flows for the interim period.
NOTE 2. Principles of Consolidation
The consolidated financial statements include the accounts of the
corporation and its wholly-owned subsidiary, Orrstown Bank. All
significant intercompany transactions and accounts have been
eliminated.
NOTE 3. Cash Flows
For purposes of the statements of cash flows, the corporation has
defined cash and cash equivalents as those amounts included in the
balance sheet captions " cash and due from banks " and " federal funds
sold ". As permitted by Statement of Financial Accounting Standards No.
104, the corporation has elected to present the net increase or
decrease in deposits in banks, loans and time deposits in the statement
of cash flows.
NOTE 4. Federal Income Taxes
For financial reporting purposes the provision for loan losses charged
to operating expense is based on management's judgment, whereas for
federal income tax purposes, the amount allowable under present tax law
is deducted. Additionally, certain expenses are charged to operating
expense in the period the liability is incurred for financial reporting
purposes, whereas for federal income tax purposes, these expenses are
deducted when paid. As a result of these timing differences, deferred
income taxes are provided in the financial statements. Income tax
expense is less than the amount calculated using the statutory tax rate
primarily as a result of tax exempt income earned from state and
political subdivision obligations.
NOTE 5. Other Commitments
In the normal course of business, the bank makes various commitments
and incurs certain contingent liabilities which are not reflected in
the accompanying financial statements. These commitments include
various guarantees and commitments to extend credit and the bank does
not anticipate any losses as a result of these transactions.
Page 8
NOTE 6. Changes in Common Stock
During July 2001 the Board of Directors of Orrstown Financial Services,
Inc. approved a 5 % stock dividend payable September 15, 2001 to
shareholders of record August 1, 2001. All per share amounts have been
adjusted to give retroactive recognition to the 5% stock dividend paid
September 15, 2001.
NOTE 7. Investment Securities
Management determines the appropriate classification of securities at
the time of purchase. If management has the intent and the corporation
has the ability at the time of purchase to hold securities until
maturity or on a long - term basis, they are classified as securities
held to maturity and carried at amortized historical cost. Securities
to be held for indefinite periods of time and not intended to be held
to maturity or on a long-term basis are classified as available for
sale and carried at fair value. Securities held for indefinite periods
of time include securities that management intends to use as part of
its asset and liability management strategy and that may be sold in
response to changes in interest rates, resultant prepayment risk and
other factors related to interest rate and resultant prepayment risk
changes.
Realized gains and losses on dispositions are based on the net proceeds
and the adjusted book value of the securities sold, using the specific
identification method. Unrealized gains and losses on investment
securities available for sale are based on the difference between book
value and fair value of each security. These gains and losses are
credited or charged to shareholders' equity, whereas realized gains and
losses flow through the corporation's operations.
Management has classified all investments securities as "available for
sale". At September 30, 2001 fair value exceeded amortized cost by
$2,089,000. This resulted in an increase in stockholders' equity of
$1,379,000 after recognizing the tax effects of the unrealized losses.
At December 31, 2000, fair value exceeded amortized cost by $700,000
resulting in a increase in stockholders' equity of $462,000 after
recognizing the tax effects of the unrealized gains.
Page 9
ORRSTOWN FINANCIAL SERVICES, INC.
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS
Summary
-------
Orrstown Financial Services, Inc. recorded net income of $1,383,000 for
the third quarter of 2001 compared to $ 1,027,000 for the same period
in 2000, representing an increase of $356,000 or 34.7%. Net income per
share was $ .58 during 2001's third quarter up $ .14 from the $ .44
earned during 2000's third quarter.
Net income for the first nine months of 2001 was $3,799,000 compared to
$3,050,000 for the same period in 2000, representing an increase of
$749,000 or 24.6%. Net income per share for the first nine months of
2001 was $1.61 up $0.31 from the $1.30 per share realized during the
nine months ended September 30, 2000.
The following statistics compare 2001's year to date performance to
that of 2000:
Third Quarter Nine Months Year to Date
2001 2000 2001 2000
---- ---- ---- ----
Return on average assets 1.57% 1.40% 1.54% 1.45%
Return on average equity 18.34% 16.85% 17.60% 17.45%
Average equity/Average assets 8.54% 8.32% 8.75% 8.32%
A more detailed discussion of the elements having the greatest impact
on net income follows.
Net Interest Income
-------------------
Third Quarter 2001 vs. Third Quarter 2000
Net interest income for the third quarter of 2001 was $ 3,356,000
representing a growth of $ 569,000, or 20.4%, over the $ 2,787,000
realized during 2000's third quarter. The growth in net interest income
is driven by volume factors since spreads have tightened during 2001.
Nine Months 2001 vs. Nine Months 2000
Net interest income for the first nine months of 2001 was $9,520,000
representing an increase of $1,336,000 or 16.3%, over the $ 8,184,000
generated during the first nine months of 2000. Volume factors,
particularly the growth in core deposits and continued commercial loan
demand, have generated the gains since rate factors have tightened.
Growth in the Carlisle, Mechanicsburg, and Chambersburg markets has
been extremely good in both core deposits and commercial loans.
Page 10
The table that follows states rates on a fully taxable equivalent
basis, (F.T.E.) and demonstrates the aforementioned effects:
Third Quarter Nine Months Year To Date
------------- ------------------------
2001 2000 2001 2000
---- ---- ---- ----
(in thousands) Avg. Balances Rates Avg. Balances Rates Avg. Balances Rates Avg. Balances Rates
------------- ----- ------------- ----- ------------- ----- ------------- -----
Interest earning assets $ 325,863 7.71% $ 267,557 8.54% $ 305,679 8.01% $ 258,499 8.45%
Interest bearing liabilities 281,561 3.78% 236,040 4.56% 266,156 4.12% 227,412 4.39%
--------- ---- ---------- ---- ---------- ----- --------- ----
Free Funds $ 44,302 $ 31,517 $ 39,523 $ 31,087
========= ========== ========== =========
Net interest income $ 3,527 $ 2,862 $ 9,809 $ 8,409
========= ========== ========== =========
Net interest spread (F.T.E.) 3.93% 3.98% 3.89% 4.06%
==== ==== ===== ====
Free funds ratio 13.60% 11.78% 12.93% 12.03%
========= ========== ===== =========
Net interest margin (F.T.E.) 4.45% 4.53% 4.42% 4.60%
==== ==== ===== ====
Page 11
Other Income and Other Expenses
-------------------------------
Third Quarter 2001 vs. Third Quarter 2000
Other income increased $90,000, or 9.9%, from $902,000 during the third
quarter of 2000 to $992,000 during the third quarter of 2001.
Securities gains declined by $45,000, from $36,000 during third quarter
2000 to $(9,000). Increases in service charge income were the most
significant with an increase of $187,000, or 64.3%, from $291,000 in
the third quarter of 2000 to $478,000 in 2001. Service charge increases
were across all categories with loan fees and the bounce protection
program generating the largest increases.
Other expenses rose $144,000, or 6.2%, from $2,320,000 for third
quarter 2000 to $2,464,000 for 2001's third quarter. Increases were
across all categories with the largest component being a 10.7% increase
in salaries and benefits. The addition of a new branch in Greencastle,
Pennsylvania in March and overall asset growth of 18.3% since December
31, 2000 have necessitated staff additions.
Nine Months 2001 vs. Nine Months 2000
Other income increased $691,000, or 26.6%, to $3,292,000 from
$2,601,000 a year ago. Service charge increases were the primary source
of growth. Trust income increased while brokerage income declined.
Other expenses rose $923,000, or 13.9%, to $7,576,000 from $6,653,000 a
year earlier with the aforementioned general growth in size; the
opening of a tenth branch, which helped increase staff, and expanded
operating systems and facilities all contributing to the increase.
Income Tax Expense
------------------
Income tax expense increased $159,000, or 46.5%, during 2001's third
quarter versus third quarter 2000. Income tax expense rose $355,000, or
32.8% for the first nine months of 2001 versus the same period a year
ago. The growth in income tax expense is the byproduct of similar
increases in pretax income since effective federal income tax rates has
remained relatively stable, as shown below:
Third Quarter Nine Months Year to Date
2001 2000 2001 2000
---- ---- ---- ----
Effective income tax rate 26.6% 25.0% 27.4% 26.2%
The marginal federal income tax bracket is 34% for all periods presented.
Page 12
PROVISION AND ALLOWANCE FOR LOAN LOSSES
The provision for loan losses and the other changes in the allowance
for loan losses are shown below (in thousands) :
Quarter Ended Nine Months Ended
September 30 September 30
------------ ------------
2001 2000 2001 2000
Balance, beginning of
period $ 2,803 $ 2,554 $ 2,691 $ 2,455
Recoveries 1 0 3 4
Provision for loan loss
charged to income 170 75 290 225
--------- -------- -------- ---------
Total 2,974 2,629 2,984 2,684
Losses 74 69 84 124
--------- -------- --------- ---------
Balance, end of period $ 2,900 $ 2,560 $ 2,900 $ 2,560
========= ======== ======== =========
In the opinion of management, the allowance , when taken as a whole, is
adequate to absorb reasonably estimated loa n losses inherent in the
Bank's loan portfolio. The unallocated portion of the allowance for
loan losses exceeds 50% at September 30, 2001.
Loans 90 days or more past due (still accruing interest) and those on
nonaccrual status were as follows at September 30 (in thousands):
90 Days or More
Past Due Nonaccrual Status
----------------- ------------------
2001 2000 2001 2000
Real estate mortgage $ 504 $ 168 $ 0 $ 0
Installment loans 71 15 9 16
Commercial loans 52 781 30 0
Credit card 5 5 0 0
--------- -------- -------- ---------
Total $ 632 $ 969 $ 39 $ 16
========= ======== ======== =========
There were no restructured loans for any of the time periods set forth
above.
Any loans classified for regulatory purposes as loss, doubtful,
substandard or special mention that have not been disclosed under Item
III of Industry Guide 3 do not represent or result from trends or
uncertainties which management reasonably expects will materially
impact future operating results, liquidity or capital resources.
Page 13
CAPITAL RESOURCES AND BALANCE SHEET FLUCTUATIONS
A comparison of Orrstown Financial Services' capital ratios to
regulatory minimum requirements at September 30, 2001 is as follows:
Orrstown Financial Regulatory Minimum
Services Requirements
Leverage ratio 8.37% 4%
Risk based capital ratios:
Tier I (core capital) 11.96% 4%
Combined tier I and tier II
(core capital plus allowance
for loan losses) 13.15% 8%
The growth experienced during 2001 has been supported by capital growth
in the form of retained earnings and the popularity of the dividend
reinvestment plan which has added $718,000 to equity. Equity
represented 8.42% of assets at September 30, 2001 which is down
slightly from 8.55% at December 31, 2000.
All balance sheet fluctuations exceeding 5% have been created by either
the growth that has been experienced during 2001 or single day
fluctuations.
Management is not aware of any current recommendations by regulatory
authorities which, if implemented, would have a material effect on the
corporation's liquidity, capital resources or operations.
Page 14
PART II - OTHER INFORMATION
OTHER INFORMATION
Item 1 - Legal Proceedings
- --------------------------
None
Item 2 - Changes in Securities
- ------------------------------
None
Item 3 - Defaults Upon Senior Securities
- ----------------------------------------
Not applicable
Item 4 - Submission of Matters to a Vote of Security Holders
- ------------------------------------------------------------
The annual meeting of shareholders of Orrstown Financial Services, Inc.
was held on May 1, 2001 and shareholders approved the one matter upon
which they were asked to vote. The election of three directors to Class
B for three year terms expiring in 2004.
Item 5 - Other Information
- --------------------------
None
Item 6 - Exhibits and Reports on Form 8 - K
- -------------------------------------------
(a) Exhibits:
Exhibit Number Referred to
Item 601 of Regulation S-K: Description of Exhibit:
Exhibit 27 Financial Data Schedule
Exhibit 99 Report of Independent
Accountant's on Interim
Financial Statements
(b) Reports on Form 8-K - None
Page 16
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.
/s/ Kenneth R. Shoemaker
------------------------------------------
(Kenneth R. Shoemaker, President)
(Duly Authorized Officer)
/s/ Bradley S. Everly
------------------------------------------
Date November 8, 2001 (Bradley S. Everly, Senior Vice President)
---------------- (Chief Financial Officer)
/s/ Robert B. Russell
------------------------------------------
(Robert B. Russell, Controller)
(Chief Accounting Officer)
Page 17
DATA FINANCIAL SCHEDULE
FOR 10-Q AT SEPTEMBER 30, 2001
FISCAL YEAR END DEC-31-2001
PERIOD END SEPT-30-2001
CASH 9,128
INT-BEARING-DEPOSITS 739
FED-FUNDS-SOLD 26,817
TRADING-ASSETS 0
INVESTMENTS-HELD-FOR-SALE 0
INVESTMENTS-CARRYING 66,714
INVESTMENTS-MARKET 66,714
LOANS 247,889
ALLOWANCE 2,900
TOTAL-ASSETS 368,944
DEPOSITS 269,606
SHORT-TERM 35,804
LIABILITIES-OTHER 3,277
LONG-TERM 29,200
COMMON 247
PREFERRED-MANDATORY 0
PREFERRED 0
OTHER-SE 30,810
TOTAL-LIABILITIES-AND-EQUITY 368,944
INTEREST-LOAN 14,517
INTEREST-INVEST 3,177
INTEREST-OTHER 328
INTEREST-TOTAL 18,020
INTEREST-DEPOSIT 6,444
INTEREST-EXPENSE 8,210
INTEREST-INCOME-NET 9,810
LOAN-LOSSES 290
SECURITIES-GAINS 22
EXPENSE-OTHER 7,576
INCOME-PRETAX 5,236
INCOME-PRE-EXTRAORDINARY 3,799
EXTRAORDINARY 0
CHANGES 0
NET-INCOME 3,799
EPS-PRIMARY 1.61
EPS-DILUTED 1.61
YIELD-ACTUAL 4.42
LOANS-NON 39
LOANS-PAST 632
LOANS-TROUBLED 0
LOANS-PROBLEM 0
ALLOWANCE-OPEN 2,691
CHARGE-OFFS 84
RECOVERIES 3
ALLOWANCE-CLOSE 2,900
ALLOWANCE-DOMESTIC 2,900
ALLOWANCE-FOREIGN 0
ALLOWANCE-UNALLOCATED 1,489