FORM 1O-QSB
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
(Mark One)
[X] QUARTERLY REPORT UNDER SECTION 13 or 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended December 31, 1998
-----------------
OR
[ ] 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 0-20907
KENWOOD BANCORP, INC.
- --------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
Delaware 31-1457996
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(State or other jurisdiction or (IRS Employer
incorporation or organization) Identification Number)
7711 Montgomery Road
Cincinnati, Ohio 45236
- --------------------------------------------------------------------------------
(Address of principal (Zip Code)
executive office)
Registrant's telephone number, including area code: (513) 791-2834
Check 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 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 [ ]
As of February 12, 1999, the latest practicable date, 295,133 shares of the
registrant's common stock, $.01 par value, were issued and outstanding.
Page 1 of 13 pages
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KENWOOD BANCORP, INC.
Index
Page
----
PART I FINANCIAL INFORMATION
Consolidated Statements of Financial Condition 3
Consolidated Statements of Income 4
Consolidated Statements of Cash Flows 5
Notes to Consolidated Financial Statements 6
Management's Discussion and Analysis of
Financial Condition and Results of
Operations 8
PART II OTHER INFORMATION 12
SIGNATURES 13
- 2 -
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<TABLE>
<CAPTION>
KENWOOD BANCORP INC.
STATEMENTS OF FINANCIAL CONDITION
(in Thousands)
ASSETS
December 31 September 30,
1998 1998
(unaudited)
<S> <C> <C>
Cash and due from banks ................................................ $ 1,709 $ 745
Interest bearing deposits in other financial institutions .............. 5,361 2,374
-------- --------
Cash and cash equivalents ............................... 7,070 3,119
Investment securities at amortized cost, approximate market
value of $498 and $1,502 as of December 31, 1998
and September 30, 1998 ............................................ 500 1,499
Investment securities - available for sale, amortized cost
of $500 as of September 30, 1998 ................................. -- 502
Mortgage-backed securities at cost, approximate market
value of $171 and $191 as of December 31, 1998
and September 30, 1998 ............................................ 163 181
Mortgage-backed securities available for sale, amortized cost
of $4,591 and $3,947 as of December 31, 1998
and September 30, 1998 ............................................ 4,603 3,972
Loans receivable ....................................................... 34,151 36,211
Loans held for sale - at lower of cost or market ....................... 2,325 2,189
Property and equipment, net ............................................ 689 354
Federal Home Loan bank stock - at cost ................................. 504 495
Accrued interest receivable:
Loans ............................................................. 182 204
Mortgage-backed securities ........................................ 27 25
Investment securities ............................................. -- 18
Prepaid expenses and other assets ...................................... 33 80
Prepaid federal income taxes ........................................... -- 22
-------- --------
$ 50,247 $ 48,871
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits ............................................................... $ 42,236 41,383
Advances from the Federal Home Loan Bank ............................... 2,405 2,429
Accounts payable on mortgage loans services for others ................. 384 28
Advances by borrowers for taxes and insurance .......................... 309 220
Other liabilities ...................................................... 159 96
Accrued federal income taxes ........................................... 10 --
Deferred federal income taxes .......................................... 147 151
-------- --------
Total liabilities ....................................... 45,650 44,307
-------- --------
Commitments ............................................................ -- --
</TABLE>
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<TABLE>
<CAPTION>
KENWOOD BANCORP INC.
STATEMENTS OF FINANCIAL CONDITION
(in Thousands)
(continued)
December 31 September 30,
1998 1998
(unaudited)
<S> <C> <C>
Stockholders' equity
Preferred stock - authorized 1,000,000 shares of $.01 par
value, none issued ............................................ -- --
Common stock - authorized 4,000,000 shares of $.01 par
value; 295,133 shares issued and outstanding .................. 3 3
Additional paid in capital ........................................ 1,774 1,774
Retained earnings - substantially restricted ...................... 2,933 2,891
Shares acquired by Management Recognition Plan .................... (17) (17)
Less unearned ESOP shares ......................................... (104) (106)
Unrealized gain on available for sale securities, net of income tax 8 19
-------- --------
Total stockholders' equity .............................. 4,597 4,564
-------- --------
$ 50,247 48,871
======== ========
</TABLE>
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<TABLE>
<CAPTION>
KENWOOD BANCORP INC.
CONSOLIDATED STATEMENTS OF INCOME
(In thousands)
(Unaudited)
Three Months ended
December 31
1998 1997
---- ----
<S> <C> <C>
Interest income
Loans .......................................... $738 741
Mortgage-backed securities ..................... 68 59
Investment securities .......................... 20 45
Interest bearing deposits and other ............ 47 31
---- ----
Total interest income ....................... 873 876
Interest expense
Deposits ....................................... 569 579
Borrowings ..................................... 33 27
---- ----
Total interest expense ...................... 602 606
---- ----
Net interest income ......................... 271 270
Provision for losses on loans ........................ -- --
---- ----
Net interest income after provision
for losses on loans ..................... 271 270
---- ----
Other income
Gain on sale of mortgage loans ................. 190 104
Gain on sale of investments .................... -- --
Other operating ................................ 8 6
---- ----
198 110
---- ----
</TABLE>
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<TABLE>
<CAPTION>
KENWOOD BANCORP INC.
CONSOLIDATED STATEMENTS OF INCOME
(In thousands)
(Unaudited)
(continued)
Three Months ended
December 31
1998 1997
---- ----
<S> <C> <C>
General, administrative and other expenses
Employee compensation and benefits ............. 237 144
Occupancy and equipment ........................ 36 32
Federal deposit insurance premiums ............. 9 10
Franchise taxes ................................ 14 13
Other .......................................... 78 74
---- ----
Total general, administrative and
other expenses .......................... 374 273
---- ----
Income before income taxes .................. 95 107
Federal income taxes
Current ........................................ 32 33
Deferred ....................................... -- --
---- ----
32 33
---- ----
Net income .................................. $ 63 74
==== ====
Earnings per share
Basic ................................... $0.22 0.26
==== ====
Diluted ................................. $0.22 0.25
==== ====
</TABLE>
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<TABLE>
<CAPTION>
KENWOOD BANCORP INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the three months ended December 31,
(In thousands)
(Unaudited)
1998 1997
---- ----
<S> <C> <C>
Cash flows from operating activities:
Net income for the period ........................................... $ 63 74
Adjustments to reconcile net income to net cash provided by (used in)
operating activities:
Depreciation and amortization ................................ 8 8
Amortization of ESOP ......................................... 2 2
Amortization of premiums and discounts on investments
and mortgage-backed securities ............................ 4 --
Loans disbursed for sale in the secondary market ............. (16,507) (7,214)
Proceeds from sale of loans in the secondary market .......... 16,562 7,773
Gain on sale mortgage loans .................................. (190) (104)
Federal Home Loan Bank dividends ............................. (9) (8)
Increase (decrease) in cash due to changes in:
Deferred loan costs ....................................... 29 (7)
Accrued interest receivable ............................... 38 (18)
Prepaid expenses and other assets ......................... 34 30
Accounts payable on mortgage loans serviced for others .... 356 48
Other liabilities ......................................... 63 10
Accrued federal income taxes .............................. 32 32
-------- --------
Net cash provided by (used in) operating activities .... 485 626
-------- --------
Cash flows provided by (used in) investing activities:
Principal payments on loans and mortgage-backed securities .......... 5,636 1,187
Loan disbursements .................................................. (3,043) (2,721)
Purchase of investment securities - held to maturity ................ (500) --
Maturity of investment securities ................................... 2,000 --
Purchase of mortgage-backed securities - available for sale ......... (1,194) --
Purchase of office premises and equipment ........................... (330) --
Decrease in certificates of deposit in other financial institutions . -- 285
-------- --------
Net cash provided by (used in) investing activities .... 2,569 (1,249)
-------- --------
</TABLE>
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<TABLE>
<CAPTION>
KENWOOD BANCORP INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the three months ended December 31,
(In thousands)
(Unaudited)
(continued)
1998 1997
---- ----
<S> <C> <C>
Cash flows provided by (used in) financing activities:
Net increase in deposits ............................................ 853 258
Borrowings from FHLB ................................................ -- 3,000
Repayment of FHLB advances .......................................... (24) (2,014)
Advances by borrowers for taxes and insurance ....................... 89 108
Dividends paid on common stock ...................................... (21) (20)
-------- --------
Net cash provided by (used in) financing activities .... 897 1,332
-------- --------
Net decrease in cash and cash equivalents ................................ 3,951 709
Cash and cash equivalents - beginning of period .......................... 3,119 1,382
-------- --------
Cash and cash equivalents - end of period ................................ $ 7,070 2,091
======== ========
Supplemental disclosure of cash flow information
Cash paid during the period for:
Federal income taxes ............................................. $ -- --
======== ========
Interest on deposits and borrowings .............................. $ 620 604
======== ========
</TABLE>
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<PAGE>
KENWOOD BANCORP, INC.
Notes to Consolidated Financial Statements
1. Organizational Summary:
Kenwood Bancorp, Inc. (the "Company" or "Bancorp") is a holding company
formed in March 1996, in conjunction with the second step conversion of
Kenwood Savings and Loan Association from a mutual holding company format
to a stock holding company format. The second step conversion was
completed on June 28, 1996, with all the stock of the Association canceled
and converted into stock of Bancorp. Bancorp's financial statements
include the accounts of its wholly owned subsidiary, Kenwood Savings Bank
(formerly Kenwood Savings and Loan Association).
2. Basis of Presentation:
The accompanying unaudited financial statements were prepared in
accordance with instructions for Form 10-QSB and, therefore, do not
include information or footnotes necessary for a complete presentation of
financial position, results of operations and cash flows in conformity
with generally accepted accounting principles. However, all adjustments
(consisting only of normal recurring accruals) which, in the opinion of
management, are necessary for a fair presentation of the financial
statements have been included. The results of operations for the three
month period ended December 31, 1998, are not necessarily indicative of
the results which may be expected for the entire fiscal year.
3. Earnings Per Share:
Basic earnings per share for the three month periods ended December 31,
1998 and 1997, is computed based on 281,591 and 280,771 weighted average
shares outstanding for Bancorp, respectively. Diluted earnings per share
for the three month periods ended December 31, 1998 and 1997, is computed
based on 283,053 and 294,661 weighted average shares outstanding as
adjusted for the stock compensation plan and for the employee stock
ownership plan.
4. Effects of Recent Accounting Pronouncements:
In March 1997, the FASB issued SFAS No. 128, "Earnings per Share" to
replace the presentation on "primary" and "full diluted" earnings per
share with newly defined "basic" and "diluted" earnings per share. "Basic"
earnings per share will not include the dilutive effect of certain common
stock equivalents on earnings. Diluted earnings per share reflects the
potential dilution of securities that could share in an enterprise's
earnings. The statements require dual presentation of basic and diluted
earnings per share on the income statements for all entities having
complex capital structures and is effective for financial statements
issued for periods ending after December 15, 1997. SFAS No. 128 was
adopted for the period ending December 31, 1997. Prior year earnings per
share information was restated to conform with the new pronouncement.
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<PAGE>
In June 1997, the FASB issued SFAS No. 130, "Reporting Comprehensive
Income" which establishes standards for reporting and display of
comprehensive income and its components (revenues, expenses, gains and
losses) in financial statements. This statement requires that all items
that are required to be recognized under accounting standards as
components of comprehensive income be reported in a financial statement
that is displayed with the same prominence as other financial statements.
This statement requires that (a) items of other comprehensive income be
classified by their nature in a financial statement and (b) the
accumulated balance of other comprehensive income be displayed separately
from retained earnings and additional paid in capital in the equity
section of the statement of condition. SFAS No. 130 is effective for
fiscal years beginning after December 15, 1997. The Company adopted SFAS
No. 130 beginning October 1, 1998.
Comprehensive income for the three months ended December 31, 1998 and 1997
was $52 and $81, respectively. The difference between net income and
comprehensive income consists solely of the effect of the unrealized gains
and losses, net of tax, on available for sale securities.
In June 1997, the FASB issued SFAS No. 131, "Disclosure about Segments of
an Enterprise and Related Information." SFAS No. 131 significantly changes
the way that public business enterprises report information about
operating segments in annual and interim financial statements issued to
shareholders. SFAS No. 131 uses a "management approach" to disclose
financial and descriptive information about an enterprise's reportable
operating segments which is based on management's method for making
operating decisions and assessing performance. SFAS No. 131 is effective
for financial statements for periods beginning after December 15, 1997.
There was no effect from the adoption of this pronouncement.
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<PAGE>
KENWOOD BANCORP INC.
Management's Discussion And Analysis Of Financial
Condition And Results Of Operations
Discussion of Financial Condition Changes from September 30, 1998 to December
31, 1998
At December 31, 1998, the Company had total assets of $50.2 million, an increase
of approximately $1.4 million or 2.8% from September 30, 1998. The increase in
assets was due to an increase in cash and cash equivalents partially offset by a
decrease in loans receivable (including loans held for sale), which was funded
by deposit growth and accounts payable to mortgages serviced for others.
Cash and cash equivalents increased $3.9 million or 126% during the three months
ended December 31, 1998, as the repayments from loans and maturity of investment
securities were invested in interest bearing deposits.
Loans receivable (including loans held for sale) decreased by $1.9 million or
4.8% to $36.5 million at December 31, 1998 as compared to $38.4 million at
September 30, 1998. The Company normally sells all fixed rate one-to-four family
loans originated on the secondary market. The current consumer demand for fixed
rate loans has impacted the Company's adjustable rate portfolio as ARM loans
refinanced to fixed rate products. The Company sold $16.4 million of loans in
the secondary market for the three months ended December 31, 1998.
The Company's investment portfolio consists of investment securities, and
mortgage-backed securities (held to maturity and available for sale). The
investment portfolio decreased $888,000 or 14.4% over the level maintained at
September 30, 1998. The decrease in the investment portfolio was due to the
maturity of investment securities and principal repayments of mortgage-backed
securities partially offset by the net increase in mortgage-backed securities
from new purchases during the quarter ended December 31, 1998. The proceeds from
the maturities were invested in interest bearing deposits.
Deposits totaled $42.2 million at December 31, 1998, an increase of $853,000 or
2.1% from the $41.4 million of deposits at September 30, 1998. The increase in
deposits is exclusively in the demand deposit accounts. The Company continues to
see a reduction in certificates of deposit due to high competition for the funds
and other savings vehicles available to customers. The Company does not offer
special rates or terms to attract deposits unless the terms and rates are
favorable for the Company for the long term. Demand accounts have increased
during the three months ended December 31, 1998 as the Company's new demand
products, and other demand products established in prior periods, continue to
generate deposit growth.
The Company is required to meet two minimum capital standards promulgated by the
Office of Thrift Supervision. The capital standards generally require the
maintenance of regulatory capital sufficient to meet a core and risk-based
capital requirement. At December 31, 1998, the Company's core capital totaled
$4.4 million or 8.7% of adjusted total assets, which exceeded the respective
minimum requirements at that date of 4.0% by $2.4 million. The Company's
risk-based capital totaled $4.5 million at December 31, 1998 or 20.3% of
risk-weighted assets, which exceeded the 8.0% minimum requirement by $2.7
million.
-8-
<PAGE>
Comparison of Operating Results for the Three Months Ended December 31, 1998 and
1997
General
Net income for the three months ended December 31, 1998 totaled $63,000, a
decrease of S11,000 or 14.9% from the $74,000 recorded for the three months
ended December 31, 1997. The decrease in net income resulted primarily from an
increase in compensation and benefits which was partially offset by an increase
in the gain on sale of mortgage loans.
Net Interest Income
Interest income on loans for the three months ended December 31, 1998 decreased
$3,000 or .4% due primarily to a decrease in the average balance of loans
outstanding period-to-period. Interest income on mortgage-backed securities
increased $9,000 or 15.2%, due primarily to a higher average balance outstanding
during the three months ended December 31, 1998 as compared to the three months
ended December 31, 1997. Interest income on investment securities decreased
$25,000 or 55.6% due to the reduction in the average balance outstanding for the
period ended December 31, 1998 as compared to the prior three month period.
Interest income on interest bearing deposits increased $16,000 to $47,000 for
the three months ended December 31, 1998 as compared to $475,000 for the three
months ended December 31, 1997. The Company has utilized interest bearing
deposits for excess funds.
Interest expense on deposits decreased $10,000 or 1.7% during the three months
ended December 31, 1998 as compared to the prior three month period. This
decrease was due to a decrease in the average yield on deposits during the three
month period. The decrease in the yield is due to changes in the mix of
deposits, an increase in lower rate demand deposit accounts and the reduction in
higher rate certificates of deposit. Interest expense on borrowings increased
$6,000 as the Company had a higher average balance outstanding during the three
months ended December 31, 1998 as compared to the prior three month period.
As a result of the foregoing changes in interest income and interest expense,
net interest income increased by $1,000 or .4% during the three months ended
December 31, 1998 as compared to the three months ended December 31, 1997.
Provision for Losses on Loans
The Company did not record a provision for losses on loans for the three month
periods ended December 31, 1998 and 1997. The provision for loan losses is based
on the loan portfolio characteristics, the amount of delinquent and classified
loans and management's assessment of the inherent risk in lending.
Other Income
Other income increased by $88,000 during the three months ended December 31,
1998 as compared to the three month period ended December 31, 1997. This
increase was due to the $86,000 increase in gain on sale of mortgage loans. The
Company has seen an increase in loans sold on the secondary market as consumer
demand for fixed rate loans has increased due to the low rate environment.
- 9 -
<PAGE>
General, Administrative and Other Expenses
General, administrative and other expenses increased by $101,000 or 37.0% during
the three months ended December 31, 1998 as compared to the same three month
period in 1997. This increase was due primarily to an increase of $93,000 or
64.5% in compensation and benefits. The increase resulted from additional costs
relating to the Company's mortgage loan origination office due to the higher
level of loan sales for the quarter as compared to the prior quarter.
Federal Income Taxes
The provision for federal income taxes decreased $1,000 during the three months
ended December 31, 1998 as compared to the same period in 1997. The decrease in
the federal income tax was due to the lower level of taxable income during the
current period. The Company's effective tax rates amounted to 33.6% and 30.8%
during the three month periods ended December 31, 1998 and 1997, respectively.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of
1995
In addition to historical information, forward-looking statements are contained
herein that are subject to risks and uncertainties that could cause actual
results to differ materially from those reflected in the forward-looking
statements. Factors that could cause future results to vary from current
expectations, include, but are not limited to, the impact of economic conditions
(both generally and more specifically in the markets in which the Company
operates), the impact of competition for the Company's customers from other
providers of financial services, the impact of governmental legislation and
regulation (which changes from time to time and which the Company has no
control), and other risks detailed in this Form 10-QSB and in the Company's
other Securities and Exchange Commission ("SEC") filings. Readers are cautioned
not to place undue reliance on these forward-looking statements, which reflect
management's analysis only as of the date hereof. The Company undertakes no
obligation to publicly revise these forward-looking statements, to reflect
events or circumstances that arise after the date, thereof. Readers should
carefully review the risk factors described in other documents the Company files
from time to time with the SEC.
Year 2000 Issues
As with all financial institutions, the Company's operations depend almost
entirely on computer systems. The Company has addressed the potential problems
associated with the possibility that the computers which control or operate the
Company's operating systems, facilities and infrastructure may not be programmed
to read four digit date codes and, upon arrival of the year 2000, may recognize
the two digit code "00" as the year 1900, causing systems to fail to function or
to generate erroneous data.
The Company has developed an action plan which assesses the magnitude of the
Year 2000 problem, provides a strategy that neutralizes the impact of these
problems, develops a contingency plan to be implemented if critical systems do
not become Year 2000 compliant and develop testing procedures to insure that the
systems are Year 2000 compliant. The status of this effort is reported to the
Board of Directors on a regular basis.
All third party providers of software have either certified their product as
compliant or have indicated that they will be compliant by the end of the first
quarter of calendar 1999. The major provider of data processing services to the
Company has completed its migration to a Year 2000 ready platform operating
- 10 -
<PAGE>
system and data base. Customer transaction testing was completed during the
fourth quarter of 1998. All computer equipment has been tested for Year 2000
compliance and any necessary replacements have been made.
The Company has not identified any significant expenses which are reasonably
likely to be incurred in future periods in connection with this issue and does
not expect to incur significant expense to implement any necessary corrective
actions. No assurance can be given, at this time, that significant expenses will
not be incurred in future periods. In the unlikely event that the Company is
ultimately required to purchase replacement computer systems, programs and
equipment, or that substantial expense must be incurred to make the Company's
current systems, programs and equipment Year 2000 compliant, the Company's net
income and finical condition could be adversely affected.
In addition to possible expense relating to its own systems, the Company could
incur losses if loan payments are delayed due to Year 2000 problems affecting
any of its significant borrowers or impairing the payroll systems of large
employers in the Company's primary market area. Because the Company's loan
portfolio is highly diversified with regard to individual borrowers and types of
businesses and its primary market area is not significantly dependent upon one
employer or industry, the Company does not expect any significant or prolonged
difficulties that could affect net income or cash flow.
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<PAGE>
KENWOOD BANCORP, INC.
PART II
ITEM 1. Legal Proceedings
-----------------
Not applicable
ITEM 2. Changes in Securities
---------------------
Not applicable
ITEM 3. Defaults Upon Senior securities
-------------------------------
Not applicable
ITEM 4. Submission of Matters to a Vote of Security Holders
---------------------------------------------------
Not applicable
ITEM 5. Other Information
-----------------
Not applicable
ITEM 6. Exhibits and Reports on Form 8-K
--------------------------------
a. Exhibit 27: Financial Data Schedule
b. No Form 8-K reports were filed during the quarter.
- 12 -
<PAGE>
SIGNATURES
In accordance with the requirements of the Securities Exchange Act of 1934, the
registrant has caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized.
Date February 12, 1999 By /s/ THOMAS W. BURNS
------------------ ------------------------
Thomas W. Burns
Executive Vice President and
Chief Executive Officer
Date February 12, 1999 By /s/ MICHAEL W. KELLY
------------------ -------------------------
Michael W. Kelley
Chief Financial Officer
- 13 -
<TABLE> <S> <C>
<ARTICLE> 9
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> SEP-30-1999
<PERIOD-END> DEC-31-1998
<CASH> 1,709
<INT-BEARING-DEPOSITS> 5,361
<FED-FUNDS-SOLD> 0
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 4,603
<INVESTMENTS-CARRYING> 663
<INVESTMENTS-MARKET> 669
<LOANS> 36,476
<ALLOWANCE> 95
<TOTAL-ASSETS> 50,247
<DEPOSITS> 42,236
<SHORT-TERM> 2,405
<LIABILITIES-OTHER> 1,009
<LONG-TERM> 0
0
0
<COMMON> 3
<OTHER-SE> 4,594
<TOTAL-LIABILITIES-AND-EQUITY> 50,247
<INTEREST-LOAN> 738
<INTEREST-INVEST> 88
<INTEREST-OTHER> 47
<INTEREST-TOTAL> 873
<INTEREST-DEPOSIT> 569
<INTEREST-EXPENSE> 602
<INTEREST-INCOME-NET> 271
<LOAN-LOSSES> 0
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 374
<INCOME-PRETAX> 95
<INCOME-PRE-EXTRAORDINARY> 95
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 63
<EPS-PRIMARY> .22
<EPS-DILUTED> .22
<YIELD-ACTUAL> 2.89
<LOANS-NON> 0
<LOANS-PAST> 16
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 16
<ALLOWANCE-OPEN> 95
<CHARGE-OFFS> 0
<RECOVERIES> 0
<ALLOWANCE-CLOSE> 95
<ALLOWANCE-DOMESTIC> 95
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 95
</TABLE>
