South Carolina (State or other jurisdiction of incorporation)

57-1019001 (I.R.S. Employer Identification No.)

				Page No.
PART I.    FINANCIAL INFORMATION
Item 1.		Financial Statements (Unaudited)
		Condensed Consolidated Balance Sheets—June 30, 2002 and December 31, 2001		3
		Condensed Consolidated Statements of Income—Six months ended June 30, 2002 and 2001 and three months ended June 30, 2002 and 2001		4
		Condensed Consolidated Statements of Shareholders’ Equity and Comprehensive Income—Six months ended June 30, 2002 and 2001		5
		Condensed Consolidated Statements of Cash Flows—Six months ended June 30, 2002 and 2001		6
		Notes to Condensed Consolidated Financial Statements		7-8
Item 2.		Management’s Discussion and Analysis of Financial Condition and Results of Operations		9-13
PART II.    OTHER INFORMATION
Item 4.		Submission of Matters to a Vote of Security Holders		14
Item 6.		Exhibits and Reports on Form 8-K		14
		(a)   Exhibits		14
		(b)   Reports on Form 8-K		14

		June 30, 2002				December 31, 2001
ASSETS:
Cash and cash equivalents:
Cash and due from banks		$	2,866,963			$	3,841,132
Federal funds sold and securities purchased under agreements to resell			18,096,000				18,062,000
Total cash and cash equivalents			20,962,963				21,903,132
Time deposits with other banks			299,000				299,000
Investment securities:
Securities available-for-sale			14,544,921				11,343,473
Nonmarketable equity securities			332,375				332,375
Securities held-to-maturity (estimated market value of $3,254,904 and $3,530,683 at June 30, 2002 and December 31, 2001, respectively)			3,172,658				3,499,225
Total investment securities			18,049,954				15,175,073
Loans receivable			73,181,463				71,358,930
Less allowance for loan losses			(1,295,887	)			(1,231,051	)
Loans, net			71,885,576				70,127,879
Accrued interest receivable			934,313				911,811
Premises, furniture & equipment, net			2,129,483				2,013,147
Other assets			556,829				420,126
Total assets		$	114,818,118			$	110,850,168
LIABILITIES AND SHAREHOLDERS’ EQUITY:
Liabilities:
Deposits:
Noninterest-bearing		$	10,704,231			$	9,230,016
Interest-bearing			91,508,073				89,190,295
			102,212,304				98,420,311
Short-term borrowings			470,000				560,000
Accrued interest payable			503,849				717,570
Other liabilities			96,756				150,176
Total liabilities			103,282,909				99,848,057
Shareholders’ Equity:
Preferred stock, $5 par value, 3,000,000 shares authorized and unissued			—				—
Common stock, $5 par value, 3,000,000 shares authorized, 300,000 shares issued and outstanding			1,500,000				1,500,000
Capital surplus			1,731,708				1,731,708
Accumulated other comprehensive income			110,291				51,132
Retained earnings			9,202,816				8,648,977
Treasury stock (23,324 shares in 2002 and 21,594 shares in 2001)			(1,009,606	)			(929,706	)
Total shareholders’ equity			11,535,209				11,002,111
Total liabilities and shareholders’ equity		$	114,818,118			$	110,850,168

		Six Months Ended June 30,						Three Months Ended June 30,
		2002			2001			2002			2001
Interest income:
Loans, including fees		$	2,934,769		$	3,206,320		$	1,472,218		$	1,613,886
Securities			363,432			456,445			190,806			180,914
Other interest income			165,504			479,212			81,649			220,983
Total			3,463,705			4,141,977			1,744,673			2,015,783
Interest expense:
Deposit accounts			1,411,218			2,187,654			680,020			1,048,276
Other interest expense			2,279			12,475			1,122			5,735
Total			1,413,497			2,200,129			681,142			1,054,011
Net interest income			2,050,208			1,941,848			1,063,531			961,772
Provision for loan losses			150,000			142,000			75,000			80,000
Net interest income after provision for loan losses			1,900,208			1,799,848			988,531			881,772
Other operating income:
Service charges			175,126			155,064			86,880			76,662
Other income			58,049			67,200			27,111			30,408
Total			233,175			222,264			113,990			107,070
Other operating expenses:
Salaries and benefits			561,646			538,979			287,056			266,922
Net occupancy expense			75,584			74,116			38,508			36,749
Equipment expense			130,418			127,930			59,608			67,208
Other operating expenses			313,951			372,069			154,834			181,344
Total			1,081,599			1,113,094			540,006			552,223
Income before taxes			1,051,784			909,018			562,516			436,619
Income tax provision			334,099			281,901			182,000			137,000
Net income		$	717,685		$	627,117		$	380,516		$	299,619
Earnings per share:
Weighted average common shares outstanding			277,577			281,212			277,176			280,737
Net income per common share		$	2.59		$	2.23		$	1.37		$	1.07

		Common Stock					Capital Surplus			Accumulated Other Comprehensive Income				Retained Earning				Treasury Stock				Total
		Shares		Amount
Balance, December 31, 2000		300,000		$	1,500,000		$	1,731,708		$	(71,480	)		$	7,500,834			$	(781,206	)		$	9,879,856
Cash dividends declared—$.55 per share															(154,938	)							(154,938	)
Net income for the period															627,117								627,117
Other comprehensive income, net of taxes											122,425												122,425