<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 September 30, 1996. 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: 713-993-9200
--------------
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,
1996, (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, 1995, and September 30, 1996. 1
Consolidated Statements of Income for the three months
and nine months ended September 30, 1995 and 1996. 2
Consolidated Statements of Cash Flows for the nine months
ended September 30, 1995 and 1996. 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
September 30 December 31
1996 1995
------------- ------------
Assets
Cash and due from banks (demand). . . . . . . . . $ 2,931,179 $ 2,362,761
Investment securities:
Held-to-maturity
Market value at 9-30-96 9,984,375
----------
Market value at 12-31-95 10,009,375 . . 10,008,756 9,977,841
----------
Available-for-sale
Market value at 9-30-96 24,000
----------
Market value at 12-31-95 24,000 . . 24,000 24,000
---------- ------------- -------------
$ 12,963,935 $ 12,364,602
Loans . . . . . . . . . . . . . . . . . . . . . . 71,156,691 63,425,397
Plus: Uncollected earned interest. . . . . . 735,276 537,718
Less: Allowance for losses . . . . . . . . . (1,058,110) (868,026)
Net loans and other receivables. . . . . . . 70,833,857 63,095,089
------------- -------------
Federal funds sold . . . . . . . . . . . . . . . 27,350,000 30,650,000
Property, equipment and vehicles (net). . . . . . 1,698,150 1,801,814
Other real estate . . . . . . . . . . . . . . . . 33,930 -0-
Goodwill. . . . . . . . . . . . . . . . . . . . . 436,079 436,079
Other assets. . . . . . . . . . . . . . . . . . . 589,987 670,495
------------- -------------
Total assets . . . . . . . . . . . . . . . . $ 113,905,938 $109,018,079
------------- -------------
------------- -------------
Liabilities and Stockholders' Equity
Deposits (Domestic):
Demand (non-interest bearing). . . . . . . . $ 14,522,977 $ 10,768,809
Savings, time and demand (Interest-bearing). 87,971,516 87,503.951
------------- -------------
$ 102,494,493 $ 98,272,760
Accounts payable and accrued interest payable . . 960,951 1,008,148
Accrued taxes payable . . . . . . . . . . . . . . 514,628 425,902
------------- -------------
Total liabilities. . . . . . . . . . . . . . $ 103,970,072 $ 99,706,810
------------- -------------
Minority Interest in Consolidated Subsidiary. . . 235,500 197,478
------------- -------------
Stockholders'Equity
Common stock (par value $1; 750,000
shares authorized, 365,844 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 9-30-96 and 23,119 at 12-31-95) . . . . . (91,303) (91,303)
------------- -------------
Total contributed capital . . . . . . . 500,472 500,472
------------- -------------
Retained earnings . . . . . . . . . . . . . . . . 9,199,894 8,613,319
------------- -------------
Net Unrealized Gain (Loss) on Securities
Available-for-Sale (Net of Taxes). . . . . . -0- -0-
Stockholders'equity . . . . . . . . . . 9,700,366 9,113,791
------------- -------------
Total liabilities and stockholders equity. . $ 113,905,938 $ 109,018,079
------------- -------------
------------- -------------
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
1996 1995 1996 1995
<S> <C> <C> <C> <C>
Interest Income
Interest and fees on loans $ 1,608,120 $ 1,315,140 $ 4,567,160 $ 3,609,454
Interest on funds sold and securities
purchased under agreement to resell 386,874 504,677 1,096,728 1,657,442
Interest and dividends on investments
Securities of U.S. Government and
government agencies 139,743 154,259 511,498 360,359
Obligations of states, political
subdivisions and other obligations
secured by the government -0- -0- -0- -0-
----------- ----------- ----------- -----------
Total interest on investments 526,617 658,936 1,608,226 2,017,801
----------- ----------- ----------- -----------
Total interest income 2,134,737 1,974,076 6,175,386 5,627,255
----------- ----------- ----------- -----------
Interest expense:
Interest on deposits 1,043,848 1,067,012 3,056,164 3,110,006
----------- ----------- ----------- -----------
Total Interest expense 1,043,848 1,067,012 3,056,164 3,110,006
----------- ----------- ----------- -----------
Net interest income 1,090,889 907,064 3,119,222 2,517,249
Provision for loan losses 221,068 -0- 338,594 -0-
----------- ----------- ----------- -----------
Net interest income after provision for
loan losses 869,821 907,064 2,780,628 2,517,249
----------- ----------- ----------- -----------
Other income:
Service charges on deposit accounts 44,091 40,720 130,077 116,887
Other service charges, commission and fees 55,633 40,912 150,076 122,317
Gain on sale of securities -0- -0- -0- -0-
Net income- other real estate -0- -0- -0- -0-
Other income 13,002 11,997 38,971 36,144
----------- ----------- ----------- -----------
Total other income 112,726 93,629 319,124 275,348
----------- ----------- ----------- -----------
Other expenses:
Salaries and wages 286,169 249,417 827,238 728,090
Employee benefits 61,940 60,800 188,343 184,306
Net occupancy expenses 57,050 56,425 173,624 154,120
Furniture and equipment expenses 26,205 18,087 65,735 51,900
Depreciation other than rental property 30,366 22,071 90,045 66,106
Net cost-other real estate -0- -0- -0- -0-
Computer service center 31,093 22,628 86,770 65,960
FDIC-insurance 500 (3,960) 1,500 92,429
Professional services 38,752 26,237 104,652 78,642
Advertising 18,911 19,902 46,883 56,313
Other operating expenses 130,832 133,849 444,306 366,275
----------- ----------- ----------- -----------
Total other expenses 681,818 605,456 2,029,096 1,844,141
----------- ----------- ----------- -----------
Income before income taxes 300,729 395,237 1,070,656 948,456
Less applicable income taxes (Current) (150,000) (144,000) (468,000) (350,000)
----------- ----------- ----------- -----------
Income before reduction for minority interest 150,729 251,237 602,656 598,456
Less minority interest income (loss) (2,170) (5,768) (16,081) (13,922)
----------- ----------- ----------- -----------
Net income $ 148,559 $ 245,469 $ 586,575 $ 584,534
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
Earnings per share $ .45 $ .74 $ 1.76 $ 1.75
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
</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
1996 1995
- --------------------------------------------------------------------------------------------------
<S> <C> <C>
Cash flows and operating activities:
Net income (loss). . . . . . . . . . . . . . . . . . . . . . . . $ 586,575 $ 584,534
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation . . . . . . . . . . . . . . . . . . . . . 166,680 122,351
Provision for loan losses. . . . . . . . . . . . . . . 338,594 -0-
Amortization (accretion) of discounts and
Premium . . . . . . . . . . . . . . . . . . . . . (16,852) (31,992)
Other real estate gains/net . . . . . . . . . . . . . -0- -0-
Investment securities gains/net . . . . . . . . . . . -0- -0-
Loss on sale of subsidiary stock . . . . . . . . . . . 16,942 -0-
Re-appraisal - other real estate . . . . . . . . . . . 9,692 -0-
(Decrease) increase in interest payable . . . . . . . (37,505) 448,474
(Increase) decrease in interest receivable . . . . . . (197,558) (268,555)
(Increase) decrease in other assets. . . . . . . . . . 36,886 (165,021)
Increase (decrease) in other liabilities . . . . . . . 95,114 74,811
------------ ------------
Total adjustments . . . . . . . . . . . . . . . . . . . . . . . . . . 411,993 180,068
------------ ------------
Net cash provided by (used in) operating activities . . . . . . . . . 998,568 764,602
------------ ------------
Cash flows from investing activities
Proceeds from sale of subsidiary stock . . . . . . . . . . . . . 10,000 -0-
Proceeds from sales of investment securities . . . . . . . . . . -0- -0-
Proceeds from maturities of investment securities . . . . . . . 10,000,000 7,005,000
Purchase of investment securities . . . . . . . . . . . . . . . (10,019,063) (9,932,031)
Loans made to customers net cash activity. . . . . . . . . . . . (7,879,804) (10,877,128)
Capital expenditure. . . . . . . . . . . . . . . . . . . . . . . (63,016) (284,520)
Proceeds from sale of other real estate. . . . . . . . . . . . . -0- -0-
------------ ------------
Net cash provided by (used in) investing activities . . . . . . . . . (7,951,883) (14,088,679)
------------ ------------
Cash flows from financing activities
Net increase (descrease) in demand deposits, NOW
account, savings accounts and certificates of deposit. . . . . . 4,221,733 9,473,901
Purchase of treasury stock. . . . . . . . . . . . . . . . . . . . . . -0- -0-
------------ ------------
Net cash provided by (used in) financing . . . . . . . . . . . . . . 4,221,733 9,473,901
------------ ------------
Net increase (descrease) in cash and cash equivalents . . . . . . . . (2,731,582) (3,850,176)
------------ ------------
Cash and cash equivalents at beginning of year:
Cash and due from banks. . . . . . . . . . . . . . . . . . . . . 2,362,761 3,073,573
Federal funds sold . . . . . . . . . . . . . . . . . . . . . . . 30,650,000 36,450,000
------------ ------------
Cash and cash equivalents at beginning of year. . . . . . . . . . . . 33,012,761 39,523,573
------------ ------------
------------ ------------
Cash and cash equivalents at Sept. 30, 1996
Cash and due from banks . . . . . . . . . . . . . . . . . . . . 2,931,179 2,773,397
Federal funds sold . . . . . . . . . . . . . . . . . . . . . . . 27,350,000 32,900,000
------------ ------------
Cash and cash equivalents at Sept. 30, 1996 . . . . . . . . . . . . . $30,281,179 $35,673,397
------------ ------------
------------ ------------
Supplemental disclosures of cash flow information:
Cash paid for interest . . . . . . . . . . . . . . . . . . . . . 3,103,361 2,661,532
Cash paid for income tax . . . . . . . . . . . . . . . . . . . . 368,289 138,718
</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, 1996
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, 1995. 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
The increase in loans placed on non-accrual is largely a result of
non-performance by borrowers on loans secured by single-family mortgages. Of
the increase experienced since December 31, 1995, 79% falls in this category.
Approximately 74% of the latter consists of a concentration of loans made to two
borrowers, all of which are presently in foreclosure.
In recognition of the significantly lower livestock prices compared with
the year-ago period, the bank has lowered interest rates on approximately $1.2mm
in loans to at-risk livestock borrowers. This accounts for most of the increase
in restructured loan totals since December 31, 1995.
TABLE 1 PROBLEM ASSETS
<TABLE>
<CAPTION>
(dollars in thousands) September 30 December 31
------------- ------------------------------------
1996 1995 1994 1993
<S> <C> <C> <C> <C>
Nonaccrual loans $ 640 $ 183 $ 217 $ 313
Past-due loans (over 90 days) -0- -0- -0- -0-
Restructured loans 2,137 593 668 546
------- ------ ------ -----
Total problem loans $ 2,777 $ 776 $ 885 $ 859
Foreclosed assets
Real estate 34 -0- -0- -0-
In-substance foreclosures -0- -0- -0- -0-
Other -0- -0- -0- -0-
------- ------ ------ -----
Total Problem Assets $ 2,811 $ 776 $ 885 $ 859
Total problem loans as
a percentage of total loans 3.9% 1.2% 1.8% 2.4%
Total problem assets as a
percentage of total loans
and foreclosed assets 3.9% 1.2% 1.8% 2.4%
</TABLE>
TABLE 2 LOAN CONCENTRATIONS
<TABLE>
<CAPTION>
(dollars in thousands) September 30 December 31
------------- ----------------------
1996 1995 1994
<S> <C> <C> <C>
Commercial $ 5,393 $ 4,892 $ 3,470
Agricultural 3,868 3,676 3,277
Real Estate-Construction 3,106 1,584 639
Real Estate-Mortgage 49,769 44,594 34,248
Installment loans to Individuals 9,021 8,679 7,504
------- ------- -------
Totals $71,157 $63,425 $49,138
</TABLE>
(5)
<PAGE>
SOURCES AND USES OF FUNDS
Approximately $7.9mm in loan growth in the first nine months of 1996 was
largely funded by approximately $4.2mm in deposit growth and an approximate
decline of $2.7mm in cash and cash equivalents. (Please see Statement of
Cash Flows, P-3)
LIQUIDITY
Loan growth outstripped deposit growth by $3.7mm in the first nine months
of 1996. The resulting conversion of cash and cash equivalents into
significantly less liquid loan totals has further reduced liquidity. The
level of cash and due from banks, federal funds sold and U.S. Treasury Notes
stood at approximately 39% of total liabilities at the end of the third
quarter of 1996, compared with 43% at year-end 1995. (Please see Balance
Sheet, P-1)
INTEREST RATE SENSITIVITY MANAGEMENT
The dollar impact on earnings precipitated by a change in market interest
rates is not anticipated to be material so long as the rate shift does not
significantly exceed 100 basis points. To the extent that rates increase
beyond this range, the bank will, of necessity, consider moderate upward
adjustments to commercial loan offering and renewal rates. (Please see
Table 3, P-7)
(6)
<PAGE>
INTEREST RATE SENSITIVITY MANAGEMENT
Table 3 - REPRICING SCHEDULE
9-30-96
<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 * 12,189 47,898 10,101 316
Federal Funds Sold 27,350 -0- -0- -0-
Taxable Securities ** -0- 10,009 -0- -0-
Municipal Bonds -0- -0- -0- -0-
TOTAL 39,539 57,907 10,101 316
RATE SENSITIVE LIABILITIES
(Liabilities that can be
repriced within X days)
Time Certificates of
Deposit 20,801 24,348 6,072 -0-
NOW Accounts 1,768 -0- -0- -0-
Super NOW Accounts 19,678 -0- -0- -0-
Savings Accounts 9,575 -0- -0- -0-
MMDA Accounts 5,729 -0- -0- -0-
TOTAL 57,551 24,348 6,072 -0-
Interest Rate
Sensitivity Gap (18,012) 33,559 4,029 316
Cumulative Interest Rate
Sensitivity Gap (18,012) 15,547 19,576 19,892
</TABLE>
* Does not include $640,000 in nonaccruing loans or overdrawn demand
deposits of $13,000
** Does not include $24,000 in Federal Reserve Bank stock
(7)
<PAGE>
INVESTMENT SECURITIES
Table 4
<TABLE>
<CAPTION>
CARRYING UNREALIZED UNREALIZED MARKET
VALUE GAINS LOSSES VALUE
---------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Sept.ember 30, 1996
- --------------------
(1) Held-to-Maturity:
U.S. Treasury Securities 10,008,756 -- 24,381 9,984,375
Other -- -- -- --
(2) Available-for-Sale Securities
Carried at Fair Value:
U.S. Treasury Securities -- -- -- --
Other 24,000 -- -- 24,000
---------- ---------- ----------- ------------
10,032,756 -- 24,381 10,008,375
---------- ---------- ----------- ------------
---------- ---------- ----------- ------------
December 31, 1995
- -----------------
(1) Held-to-Maturity:
U.S. Treasury Securities 9,977,841 31,534 -- 10,009,375
Other -- -- -- --
(2) Available-for-Sale Securities
Carried at Fair Value:
U.S. Treasury Securities -- -- -- --
Other 24,000 -- -- 24,000
---------- ---------- ----------- ------------
10,001,841 31,534 -- 10,033,375
---------- ---------- ----------- ------------
---------- ---------- ----------- ------------
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
---------- ---------- ----------- ------------
---------- ---------- ----------- ------------
</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.
(8)
<PAGE>
CAPITALIZATION:
The continued increase in Tier 1 leverage is a result of retained earnings
growth exceeding asset growth. The slight decline in the risk-based capital
ratios is a result of the aforementioned migration of low-risk, cash equivalent
assets into higher risk loan balances. (Please see Table 5, P-9 and Balance
Sheet, P-1)
TABLE 5 - CAPITAL
*September 30 December 31
------------- -----------
1996 1995
Tier 1 risk-based capital
(minimum is 4%) 14.53% 14.67%
Tier 1 + Tier 2 risk based capital
(minimum is 8%) 15.79% 15.92%
Tier 1 leverage (minimum is 3%) 8.31% 8.07%
*Estimate
RESULTS OF OPERATIONS
NET INTEREST INCOME
Net interest income continues to improve in the three and nine month
periods due to loan growth and, to a lesser extent, a reduction in aggregate
funding costs. (Please see Statement of Income, P-2)
OTHER INCOME AND EXPENSE
Provision for loan loss expense was a significant factor in the three and
nine month periods of 1996. This is a by-product of increases in problem loans
and of loan growth over these time frames and the resulting necessity for higher
reserve levels.
Savings from the elimination of FDIC insurance premiums have been
more than offset by increases in all expense categories, with the exception of
advertising expense. Increases in employee compensation, tied to increased
staffing levels, looms as the largest increase in the three and nine month
periods of 1996. (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: October 28, 1996 /S/ J. Ed Eisemann, IV
--------------------------
Chairman of the Board
Date: October 28, 1996 /S/ Catherine G. Eisemann
--------------------------
Director
(11)
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 9
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM REGISTRANT'S
FORM 10-Q, DATED SEP 30, 1996 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO
SUCH FINANCIAL STATMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> SEP-30-1996
<CASH> 2,931,179
<INT-BEARING-DEPOSITS> 0
<FED-FUNDS-SOLD> 27,350,000
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 24,000
<INVESTMENTS-CARRYING> 10,008,756
<INVESTMENTS-MARKET> 9,984,375
<LOANS> 71,156,691
<ALLOWANCE> 1,058,110
<TOTAL-ASSETS> 113,905,938
<DEPOSITS> 102,494,493
<SHORT-TERM> 0
<LIABILITIES-OTHER> 1,475,579
<LONG-TERM> 0
0
0
<COMMON> 356,844
<OTHER-SE> 9,343,522
<TOTAL-LIABILITIES-AND-EQUITY> 113,905,938
<INTEREST-LOAN> 4,567,160
<INTEREST-INVEST> 511,498
<INTEREST-OTHER> 1,096,728
<INTEREST-TOTAL> 6,175,386
<INTEREST-DEPOSIT> 3,056,164
<INTEREST-EXPENSE> 3,056,164
<INTEREST-INCOME-NET> 3,119,222
<LOAN-LOSSES> 338,594
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 2,029,096
<INCOME-PRETAX> 1,070,656
<INCOME-PRE-EXTRAORDINARY> 1,070,656
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 586,575
<EPS-PRIMARY> 1.758
<EPS-DILUTED> 1.758
<YIELD-ACTUAL> 7.586
<LOANS-NON> 639,960
<LOANS-PAST> 0
<LOANS-TROUBLED> 2,137,486
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 868,026
<CHARGE-OFFS> 161,145
<RECOVERIES> 12,635
<ALLOWANCE-CLOSE> 1,058,110
<ALLOWANCE-DOMESTIC> 210,396
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 847,714
</TABLE>
