<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-Q
QUARTERLY REPORT UNDER SECTION 13 OR 15 (d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the Nine Months Ended Sept. 30, 1995. COMMISSION FILE NUMBER 0-8597
-----------------------------
THE REPUBLIC CORPORATION
------------------------
TEXAS 74-0911766
- ----- ----------
(State of other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
5340 WESLAYAN - P.O. BOX 270462, HOUSTON, TX 77277
- ----------------------------------------------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: 713-622-9727
-----------
NONE
- ----
Former name, former address and former fiscal year, if changed since last
report.
Indicate by check mark whether the registrant (1) has filed all reports required
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 report(s), 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
COMMON STOCK, $1.00 PAR VALUE Shares 356,844
- ----------------------------- -------
Outstanding at Sept. 30,
1995, (excluding 23,119
shares held as treasury
shares)
<PAGE>
THE REPUBLIC CORPORATION
Index to Quarterly Report on Form 10-Q
PAGE
Part I. Financial Information
Item 1. Financial Statements (unaudited)
Consolidated Balance Sheets
December 31, 1994, and Sept. 30, 1995. 1
Consolidated Statements of Income for
the three months and nine months
ended Sept. 30, 1994 and 1995. 2
Consolidated Statements of Cash Flows
for the nine months ended Sept. 30,
1994 and 1995. 3
Notes to Financial Statements 4
Item 2. Management's Discussion and Analysis 5-9
Part II. Other Information 10
Signatures 11
<PAGE>
REPUBLIC CORPORATION AND SUBSIDIARY
Balance Sheet
<TABLE>
<CAPTION>
Sept. 30, December 31
1995 1994
- --------------------------------------------------------------------------------
<S> <C> <C>
Assets
Cash and due from banks (demand). . . . . . $ 2,773,397 $ 3,073,573
Investment securities:
Held-to-maturity
Market value at 9-30-95 9,987,500
---------
Market value at 12-31-94 6,952,200 9,961,081 7,002,058
---------
Available-for-sale
Market value at 9-30-95 24,000
---------
Market value at 12-31-94 24,000 24,000 24,000
--------- -------------- -------------
$ 12,758,478 $ 10,099,631
Loans . . . . . . . . . . . . . . . . . . . 59,984,266 49,138,466
Plus: Uncollected earned interest. . . 652,439 383,884
Less: Allowance for losses . . . . . . (894,244) (925,572)
------------- -------------
Net loans and other receivables . . 59,742,461 48,596,778
------------- -------------
Federal funds sold. . . . . . . . . . . . . 32,900,000 36,450,000
Property, equipment and vehicles (net). . . 1,703,228 1,541,059
Other real estate . . . . . . . . . . . . . -0- -0-
Goodwill. . . . . . . . . . . . . . . . . . 436,079 436,079
Other assets. . . . . . . . . . . . . . . . 657,142 492,121
------------- -------------
Total assets. . . . . . . . . . . . . . $108,197,388 $ 97,615,668
------------- -------------
Liabilities and Stockholders' Equity
Deposits (Domestic):
Demand (Non-interest bearing) . . . . . $ 12,453,367 $ 11,809,963
Savings, time and demand (Interest
bearing). . . . . . . . . . . . . . 85,236,830 76,406,333
------------- -------------
$ 97,690,197 $ 88,216,296
------------- -------------
Accounts payable and accrued interest payable 1,047,178 598,704
Accrued taxes payable . . . . . . . . . . . 386,164 325,275
------------- -------------
Total liabilities . . . . . . . . . . . $ 99,123,539 $ 89,140,275
------------- -------------
Minority Interest in Consolidated Subsidiary 192,633 178,711
------------- -------------
Stockholders' Equity
Common stock (par value $1; 750,000
shares authorized, 356,844 shares
issued including stock held
in treasury). . . . . . . . . . . . 356,844 356,844
Additional paid-in capital. . . . . . . . . 234,931 234,931
Less cost of treasury stock (23,119 shares
at 9-30-95 and 23,119 at 12-31-94). . . (91,303) (91,303)
------------- -------------
Total contributed capital . . . . . 500,472 500,472
------------- -------------
Retained earnings . . . . . . . . . . . . . 8,380,744 7,796,210
------------- -------------
Net Unrealized Gain (Loss) on Securities
Available-for-Sale (Net of Taxes) . . . -0- -0-
Stockholders' equity. . . . . . . . 8,881,216 8,296,682
------------- -------------
Total liabilities and stockholders equity $108,197,388 $ 97,615,668
------------- -------------
</TABLE>
The accompanying note is an integral part of these financial statements.
(1)
<PAGE>
REPUBLIC CORPORATION AND SUBSIDIARY
Statement of Income
<TABLE>
<CAPTION>
THREE MONTHS ENDED NINE MONTHS ENDED
---------------------------- ---------------------------
Sept. 30 Sept. 30 Sept. 30 Sept. 30
1995 1994 1995 1994
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Interest Income:
Interest and fees on loans $1,315,140 $ 986,549 $3,609,454 $2,713,253
Interest on funds sold and securities
purchased under agreement to resell 504,677 386,815 1,657,442 913,409
Interest and dividends on investments
Securities of U.S. Government and
government agencies 154,259 70,764 360,359 225,512
Obligations of states, political
subdivisions and other obligations
secured by the government -0- 67 -0- 201
----------- ----------- ----------- -----------
Total interest on investments 658,936 457,646 2,017,801 1,139,122
----------- ----------- ----------- -----------
Total interest income $1,974,076 $1,444,195 $5,627,255 $3,852,375
----------- ----------- ----------- -----------
Interest expense:
Interest on deposits 1,067,012 667,684 3,110,006 1,699,366
----------- ----------- ----------- -----------
Total Interest expense 1,067,012 667,684 3,110,006 1,699,366
----------- ----------- ----------- -----------
Net interest income 907,064 776,511 2,517,249 2,153,009
Provision for loan losses -0- -0- -0- -0-
----------- ----------- ----------- -----------
Net interest income after provision for
loan losses 907,064 776,511 2,517,249 2,153,009
----------- ----------- ----------- -----------
Other income:
Service charges on deposit accounts 40,720 35,084 116,887 100,337
Other service charges, commission and fees 40,912 39,852 122,317 108,742
Gain on sale of securities -0- -0- -0- -0-
Net income- other real estate -0- -0- -0- -0-
Other income 11,997 10,149 36,144 52,940
----------- ----------- ----------- -----------
Total other income 93,629 85,085 275,348 262,019
----------- ----------- ----------- -----------
Other expenses:
Salaries and wages 249,417 233,287 728,090 677,201
Employee benefits 60,800 56,014 184,306 169,264
Net occupancy expenses 56,425 51,380 154,120 151,002
Furniture and equipment expenses 18,087 8,610 51,900 45,204
Depreciation other than rental property 22,071 27,096 66,106 72,537
Net cost-other real estate -0- -0- -0- -0-
Computer service center 22,628 19,525 65,960 57,942
FDIC-insurance (3,960) 41,771 92,429 115,045
Professional services 26,237 37,423 78,642 83,188
Advertising 19,902 14,041 56,313 29,467
Other operating expenses 133,849 111,518 366,275 338,064
----------- ----------- ----------- -----------
Total other expenses 605,456 600,665 1,844,141 1,738,914
----------- ----------- ----------- -----------
Income before income taxes 395,237 260,931 948,456 676,114
Less applicable income taxes (Current) (144,000) (96,000) (350,000) (257,724)
----------- ----------- ----------- -----------
Income before reduction for minority interest 251,237 164,931 598,456 418,390
Less minority interest income (5,768) (3,783) (13,922) (10,143)
----------- ----------- ----------- -----------
Net income $ 245,469 $ 161,148 $ 584,534 $ 408,247
----------- ----------- ----------- -----------
Earnings per share $ .74 $ .48 $ 1.75 $ 1.22
----------- ----------- ----------- -----------
</TABLE>
The accompanying note is an integral part of these financial statements.
(2)
<PAGE>
REPUBLIC CORPORATION AND SUBSIDIARY
Statement of Cash Flows
<TABLE>
<CAPTION>
Nine Months Ended
Sept. 30 Sept. 30
1995 1994
- ----------------------------------------------------------------------------------------------------
<S> <C> <C>
Cash flows and operating activities:
Net income (loss). . . . . . . . . . . . $ 584,534 $ 408,247
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation . . . . . . . . . . 122,351 134,259
Provision for loan losses. . . . -0- -0-
Amortization (accretion) of
discounts and premium. . . . (31,992) 8,949
Other real estate gains/net. . . -0- -0-
Investment securities gains/net. -0- -0-
Re-appraisal - other real estate -0- -0-
(Decrease) increase in interest
payable. . . . . . . . . . . 448,474 283,560
(Increase) decrease in interest
receivable . . . . . . . . . (268,555) (155,830)
(Increase) decrease in other
assets . . . . . . . . . . . (165,021) 16,296
Increase (decrease) in other
liabilities. . . . . . . . . 74,811 43,742
------------- -------------
Total adjustments. . . . . . . . . . . . . . 180,068 330,976
------------- -------------
Net cash provided by (used in) operating
activities . . . . . . . . . . . . . . . 764,602 739,223
------------- -------------
Cash flows from investing activities
Proceeds from sales of investment securities -0- -0-
Proceeds from maturities of
investment securities. . . . . . . . 7,005,000 7,000,000
Purchase of investment securities. . . . (9,932,031) (6,989,063)
Loans made to customers net cash activity (10,877,128) (9,716,683)
Capital expenditure. . . . . . . . . . . (284,520) (109,818)
Proceeds from sale of other real estate. -0- -0-
------------- -------------
Net cash provided by (used in) investing
activities . . . . . . . . . . . . . . . (14,088,679) (9,815,564)
------------- -------------
Cash flows from financing activities
Net increase (decrease) in demand deposits,
NOW accounts, savings accounts and
certificates of deposit. . . . . . . 9,473,901 16,449,812
Purchase of treasury stock . . . . . . . -0- -0-
------------- -------------
Net cash provided by (used in) financing
activities . . . . . . . . . . . . . . . 9,473,901 16,449,812
------------- -------------
Net increase (decrease) in cash and cash
equivalents. . . . . . . . . . . . . . . (3,850,176) 7,373,471
Cash and cash equivalents at beginning of year:
Cash and due from banks. . . . . . . . . 3,073,573 2,525,487
Federal funds sold . . . . . . . . . . . 36,450,000 27,675,000
------------- -------------
Cash and cash equivalents at beginning of year 39,523,573 30,200,487
------------- -------------
Cash and cash equivalents at September 30:
Cash and due from banks. . . . . . . . . 2,773,397 2,773,958
Federal funds sold . . . . . . . . . . . 32,900,000 34,800,000
------------- -------------
Cash and cash equivalents at September 30: 35,673,397 37,573,958
------------- -------------
------------- -------------
Supplemental disclosures of cash flow
information:
Cash paid for interest . . . . . . . 2,661,532 1,415,805
Cash paid for income tax . . . . . . 138,718 210,443
</TABLE>
The accompanying note is an integral part of these financial statements.
(3)
<PAGE>
REPUBLIC CORPORATION AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
SEPTEMBER 30, 1995
NOTE 1 -- BASIS OF PREPARATION AND PRESENTATION
The consolidated financial statements included herein have been prepared by
The Republic Corporation, without audit, pursuant to the rules and regulations
of the Securities and Exchange Commission and include all adjustments which are,
in the opinion of management, necessary for a fair presentation. The condensed
consolidated financial statements include the accounts of the company and its
subsidiaries. Certain information and footnote disclosures normally included in
financial statements prepared in accordance with generally accepted accounting
principles have been condensed or omitted pursuant to such rules and
regulations. The Republic Corporation believes that the disclosures are adequate
to make the information presented not misleading; however, it is suggested that
these financial statements be read in conjunction with the financial statements
and the notes thereto which are on Form 10-K for the fiscal year ended December
31, 1994. The financial data for the interim periods may not necessarily be
indicative of results to be expected for the year.
Securities that will be held for indefinite periods of time, including
securities that will be used as part of the Company's asset/liability management
strategy and that may be sold in response to changes in interest rates,
prepayments, and similar factors, are classified as Available-for-Sale and
accounted for at fair value.
(4)
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS
FINANCIAL CONDITION
ASSET QUALITY
Problem loans continue at low levels as a result of continuing, favorable
economic conditions in the bank's geographic lending area. The declining problem
loan percentages depicted in Table 1 are the result of the brisk loan growth
which has occurred, year to date. (Please see Table 2, P-5) In view of these
circumstances, the low level of loss exposure in the loan portfolio and the
minimal charge-off activity, the bank's loan loss reserve is considered by
management to be adequate.
TABLE 1 PROBLEM ASSETS
<TABLE>
<CAPTION>
(dollars in thousand) Sept. 30 DECEMBER 31
------------------------------
1995 1994 1993 1992
<S> <C> <C> <C> <C>
Nonaccrual loans $ 215 $ 217 $ 313 $ 499
Past-due loans (over 90 days) -0- -0- -0- -0-
Restructured loans 587 668 546 569
------ ------ ------ ------
Total problem loans $ 802 $ 885 $ 859 $1,068
Foreclosed assets
Real estate -0- -0- -0- 91
In-substance foreclosures -0- -0- -0- 105
Other -0- -0- -0- -0-
------ ------ ------ ------
Total Problem Assets $ 802 $ 885 $ 859 $1,264
Total problem loans as
a percentage of total loans 1.3% 1.8% 2.4% 3.5%
Total problem assets as a
percentage of total loans
and foreclosed assets 1.3% 1.8% 2.4% 4.1%
</TABLE>
TABLE 2 LOAN CONCENTRATIONS
<TABLE>
<CAPTION>
(dollars in thousands) Sept. 30 DECEMBER 31
--------------------
1995 1994 1993
<S> <C> <C> <C>
Commercial $ 4,576 $ 3,470 $ 2,222
Agricultural 3,813 3,277 2,776
Real Estate-Construction 2,117 639 220
Real Estate-Mortgage 41,169 34,248 25,277
Installment loans to Individuals 8,309 7,504 5,987
------- ------- -------
Totals $59,984 $49,138 $36,482
</TABLE>
(5)
<PAGE>
SOURCES AND USES OF FUNDS
Cash sources for $10,877,128 in loan growth and a $2,927,031 increase in
investment securities during the first nine months of 1995 included $9,473,901
in increased deposits, a $3,850,176 decrease in cash equivalents and $764,602
from operating activities. (Please see Statement of Cash Flows, P-3)
LIQUIDITY
Further loan growth in excess of deposit growth can be accommodated through
liquidation of current holdings in the form of cash, federal funds sold, and
readily marketable, U.S. Treasury Notes. These liquid asset holdings stood at
46% of liabilities at the end of the current period. (Please see Balance Sheet,
P-1)
INTEREST RATE SENSITIVITY MANAGEMENT
As presently configured, the bank stands to benefit slightly from a
significant decline in market interest rates. This is primarily a result of the
large accumulation of deposits which reprice in the near term coupled with the
less frequent and smaller adjustment of loan rates in the same portion of the
maturity spectrum. For the same reasons, bank earnings would be slightly lower
if market rates increase significantly. (Please see Table 3, P-7)
(6)
<PAGE>
INTEREST RATE SENSITIVITY MANAGEMENT
Table 3 - REPRICING SCHEDULE
9-30-95
<TABLE>
<CAPTION>
3 MO. 3-12 1-5 OVER
OR LESS MONTHS YEARS 5 YEARS
------- ------- ----- -------
<S> <C> <C> <C> <C>
RATE SENSITIVE ASSETS
(Assets that can be
repriced within X days)
Loans * 10,021 42,499 6,796 437
Federal Funds Sold 32,900 -0- -0- -0-
Taxable Securities ** -0- 9,961 -0- -0-
Municipal Bonds -0- -0- -0- -0-
TOTAL 42,921 52,460 6,796 437
RATE SENSITIVE LIABILITIES
(Liabilities that can be
repriced within X days)
Time Certificates of Deposit 18,128 25,463 5,437 -0-
NOW Accounts 1,623 -0- -0- -0-
Super NOW Accounts 20,272 -0- -0- -0-
Savings Accounts 9,977 -0- -0- -0-
MMDA Accounts 4,338 -0- -0- -0-
TOTAL 54,338 25,463 5,437 -0-
Interest Rate Sensitivity Gap (11,417) 26,997 1,359 437
Cumulative Interest Rate
Sensitivity Gap (11,417) 15,580 16,939 17,376
</TABLE>
* Does not include $215,000 in nonaccruing loans or overdrawn demand
deposits of $16,000
** Does not include $24,000 in Federal Reserve Bank stock
(7)
<PAGE>
INVESTMENT SECURITIES
<TABLE>
<CAPTION>
TABLE 4
--------
CARRYING UNREALIZED UNREALIZED MARKET
VALUE GAINS LOSSES VALUE
--------- --------- ---------- ----------
<S> <C> <C> <C> <C>
SEPTEMBER 30, 1995
- ------------------
(1) Held-to-Maturity:
U.S. Treasury Securities 9,961,081 26,419 -- 9,987,500
Other -- -- -- --
(2) Available-for-Sale
Securities Carried at
Fair Value:
U.S. Treasury Securities -- -- -- --
Other 24,000 -- -- 24,000
--------- --------- ---------- ----------
9,985,081 26,419 -- 10,011,500
--------- --------- ---------- ----------
DECEMBER 31, 1994
- -----------------
(1) Held-to-Maturity:
U.S. Treasury Securities 6,997,049 -- 49,549 6,947,500
Other 5,009 -- 309 4,700
(2) Available-for-Sale
Securities Carried
at Fair Value:
U.S. Treasury Securities -- -- -- --
Other 24,000 -- -- 24,000
--------- --------- ---------- ----------
7,026,058 -- 49,858 6,976,200
--------- --------- ---------- ----------
DECEMBER 31, 1993
- -----------------
(1) Held-to-Maturity:
U.S. Treasury Securities 7,014,700 9,363 -- 7,024,063
Other 5,012 -- 27 4,985
(3) Held-for-Sale Securities
Carried at Lower of
Aggregate Cost or Market:
U.S. Treasury Securities -- -- -- --
Other 24,000 -- -- 24,000
--------- --------- ---------- ----------
7,043,712 9,363 27 7,053,048
--------- --------- ---------- ----------
</TABLE>
(1) Securities which the Bank has the ability and intent to hold to maturity.
These securities are stated at cost, adjusted for amortization of premiums and
accretion of discounts, computed by the interest method. Because securities are
purchased for investment purposes and quoted market values fluctuate during the
investment period, gains and losses are recognized upon disposition or at such
time as management determines that a permanent impairment of value has occurred.
Cost of securities sold is determined on the specific identification method.
(2) Securities that the bank may sell in response to changes in market
conditions or in the balance sheet objectives of the bank. Securities in this
category will be reported at fair market value. Unrealized gains or losses (net
of tax) will be reported as a separate item in the shareholder's equity section
of the balance sheet. Adjustments will be recorded at lease quarterly.
(3) Securities which the bank had determined would be held for indefinite
periods (no stated intent to hold until maturity). These securities were
accounted for at the lower of their cost or market value.
(8)
<PAGE>
CAPITALIZATION:
- --------------
Increased retained earnings growth, coupled with slowing asset growth
during the second and third quarters of 1995 has slowed the decline in the
banks' risk based capital ratios and has precipitated a modest reversal in the
decline of the banks' Tier 1 leverage ratio. (Please see Table 4, P-9 and
Balance Sheet, P-1)
<TABLE>
<CAPTION>
TABLE 4 - CAPITAL
-----------------
Sept. 30 December
1995 1994
<S> <C> <C>
Tier 1 risk-based capital
(minimum is 4%) 14.91% 16.29%
Tier 1 + Tier 2 risk based capital
(minimum is 8%) 16.17% 17.55%
Tier 1 leverage (minimum is 3%) 7.96% 8.19%
</TABLE>
RESULTS OF OPERATIONS
NET INTEREST INCOME
Volume driven increases in loan interest income and volume and rate driven
increases in interest on fed funds sold outpaced volume and rate driven
increases in deposit interest expense in both the three and nine month periods
depicted in the Statement of Income on page 2.
OTHER INCOME AND EXPENSE
No provision for loan losses was made in the current three or nine month
periods due to favorable economic conditions in the bank's lending area, low
levels of exposure in the bank's loan portfolio and low charge-off activity.
Lower FDIC insurance premiums in the third quarter and going forward will
have a significant impact on the bank's non-interest expense.
Growth related increases in wages and employee benefits were the most
significant cost increases experienced in the current three and nine month
periods. (Please see Statement of Income, P-2)
(9)
<PAGE>
PART II
OTHER INFORMATION
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). Exhibits
none
b). No reports on Form 8-K have been filed during the quarter for
which this report was filed.
(10)
<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.
THE REPUBLIC CORPORATION
Date: September 20, 1995 /S/ J. ED EISEMANN, IV
---------------------------
Chairman of the Board
Date: September 20, 1995 /S/ Catherine G. Eisemann
---------------------------
Director
(11)
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 9
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM REGISTRANTS
FORM 10-Q, DATED SEPTEMBER 30, 1995 AND IS QUALIFIED IN ITS ENTIRETY BY
REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-01-1995
<PERIOD-END> SEP-30-1995
<CASH> 2,773,397
<INT-BEARING-DEPOSITS> 0
<FED-FUNDS-SOLD> 32,900,000
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 24,000
<INVESTMENTS-CARRYING> 9,961,081
<INVESTMENTS-MARKET> 9,987,500
<LOANS> 59,984,266
<ALLOWANCE> 894,244
<TOTAL-ASSETS> 108,197,388
<DEPOSITS> 97,690,197
<SHORT-TERM> 0
<LIABILITIES-OTHER> 1,433,342
<LONG-TERM> 0
<COMMON> 356,844
0
0
<OTHER-SE> 8,524,372
<TOTAL-LIABILITIES-AND-EQUITY> 108,197,388
<INTEREST-LOAN> 3,609,454
<INTEREST-INVEST> 360,359
<INTEREST-OTHER> 1,657,442
<INTEREST-TOTAL> 5,627,255
<INTEREST-DEPOSIT> 3,110,006
<INTEREST-EXPENSE> 3,110,006
<INTEREST-INCOME-NET> 2,517,249
<LOAN-LOSSES> 0
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 1,844,141
<INCOME-PRETAX> 948,456
<INCOME-PRE-EXTRAORDINARY> 948,456
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 584,534
<EPS-PRIMARY> 1.75
<EPS-DILUTED> 1.64
<YIELD-ACTUAL> .071
<LOANS-NON> 215,319
<LOANS-PAST> 0
<LOANS-TROUBLED> 587,000
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 925,572
<CHARGE-OFFS> 41,798
<RECOVERIES> 10,470
<ALLOWANCE-CLOSE> 894,244
<ALLOWANCE-DOMESTIC> 68,297
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 825,947
</TABLE>
