<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 Six Months Ended June 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 June 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 June 30, 1996. 1
Consolidated Statements of Income for the three months
and six months ended June 30, 1995 and 1996. 2
Consolidated Statements of Cash Flows for the six months
ended June 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
<TABLE>
<CAPTION>
June 30 December 31
1996 1995
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Assets
Cash and due from banks (demand) . . . . . . . . . . . . . . . . . . $ 2,587,002 $ 2,362,761
Investment securities:
Held-to-maturity
Market value at 6-30-96 9,965,625
----------
Market value at 12-31-95 10,009,375 . . . . . 10,011,144 9,977,841
----------
Available-for-sale
Market value at 6-30-96 24,000
------
Market value at 12-31-95 24,000 . . . . . 24,000 24,000
------ ------------ ------------
$ 12,622,146 $ 12,364,602
Loans. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69,021,540 63,425,397
Plus: Uncollected earned interest . . . . . . . . . . . . . 635,408 537,718
Less: Allowance for losses. . . . . . . . . . . . . . . . . (928,000) (868,026)
Net loans and other receivables . . . . . . . . . . . . . . 68,728,948 63,095,089
------------ ------------
Federal funds sold . . . . . . . . . . . . . . . . . . . . . . . . . 28,575,000 30,650,000
Property, equipment and vehicles (net) . . . . . . . . . . . . . . . 1,737,463 1,801,814
Other real estate. . . . . . . . . . . . . . . . . . . . . . . . . . -0- -0-
Goodwill . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 436,079 436,079
Other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . 668,141 670,495
------------ ------------
Total assets . . . . . . . . . . . . . . . . . . . . . . . $112,767,777 $109,018,079
------------ ------------
Liabilities and Stockholders' Equity
Deposits (Domestic):
Demand (non-interest bearing) . . . . . . . . . . . . . . . $ 15,381,152 $ 10,768,809
Savings, time and demand (Interest-bearing) . . . . . . . . 86,206,807 87,503.951
------------ ------------
$101,587,959 $ 98,272,760
Accounts payable and accrued interest payable. . . . . . . . . . . . 1,029,021 1,008,148
Accrued taxes payable . . . . . . . . . . . . . . . . . . . . . . . 343,717 425,902
------------ ------------
Total liabilities . . . . . . . . . . . . . . . . . . . . . $102,960,697 $ 99,706,810
------------ ------------
Minority Interest in Consolidated Subsidiary . . . . . . . . . . . . 255,273 197,478
------------ ------------
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 6-30-96 and
23,119 at 12-31-95) . . . . . . . . . . . . . . . . . . . . (91,303) (91,303)
------------ ------------
Total contributed capital . . . . . . . . . . . . 500,472 500,472
------------ ------------
Retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . 9,051,335 8,613,319
------------ ------------
Net Unrealized Gain (Loss) on Securities
Available-for-Sale (Net of Taxes) . . . . . . . . . . . . . -0- -0-
Stockholders'equity . . . . . . . . . . . . . . . 9,551,807 9,113,791
------------ ------------
Total liabilities and stockholders equity . . . . . . . . . $112,767,777 $109,018,079
------------ ------------
</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 Six Months Ended
------------------------- -------------------------
June 30 June 30 June 30 June 30
1996 1995 1996 1995
<S> <C> <C> <C> <C>
Interest Income
Interest and fees on loans $1,501,941 $1,171,096 $2,959,040 $2,294,314
Interest on funds sold and securities
purchased under agreement to resell 337,416 580,448 709,854 1,152,765
Interest and dividends on investments
Securities of U.S. Government and
government agencies 185,927 135,719 371,755 206,100
Obligations of states, political
subdivisions and other obligations
secured by the government -0- -0- -0- -0-
---------- ---------- ---------- ----------
Total interest on investments 523,343 716,167 1,081,609 1,358,865
---------- ---------- ---------- ----------
Total interest income 2,025,284 1,887,263 4,040,649 3,653,179
---------- ---------- ---------- ----------
Interest expense:
Interest on deposits 1,000,891 1,066,771 2,012,316 2,042,994
---------- ---------- ---------- ----------
Total Interest expense 1,000,891 1,066,771 2,012,316 2,042,994
---------- ---------- ---------- ----------
Net interest income 1,024,393 820,492 2,028,333 1,610,185
---------- ---------- ---------- ----------
Provision for loan losses (87,946) -0- (117,526) -0-
---------- ---------- ---------- ----------
Net interest income after provision for
loan losses 936,447 820,492 1,910,807 1,610,185
---------- ---------- ---------- ----------
Other income:
Service charges on deposit accounts 44,798 39,497 85,986 76,167
Other service charges, commission and fees 46,326 41,886 94,443 81,405
Gain on sale of securities -0- -0- -0- -0-
Net income- other real estate -0- -0- -0- -0-
Other income 13,974 10,458 25,969 24,147
---------- ---------- ---------- ----------
Total other income 105,098 91,841 206,398 181,719
---------- ---------- ---------- ----------
Other expenses:
Salaries and wages 271,127 236,402 541,069 478,673
Employee benefits 62,954 62,190 126,403 123,506
Net occupancy expenses 56,224 43,666 116,574 97,695
Furniture and equipment expenses 15,935 15,155 39,530 33,813
Depreciation other than rental property 30,366 22,072 59,679 44,035
Net cost-other real estate -0- -0- -0- -0-
Computer service center 29,112 20,645 55,677 43,332
FDIC-insurance 500 48,194 1,000 96,389
Professional services 16,132 10,395 65,900 52,405
Advertising 14,688 17,852 27,972 36,411
Other operating expenses 136,475 117,482 313,474 232,426
---------- ---------- ---------- ----------
Total other expenses 633,513 594,053 1,347,278 1,238,685
---------- ---------- ---------- ----------
Income before income taxes 408,032 318,280 769,927 553,219
Less applicable income taxes (Current) (165,000) (118,000) (318,000) (206,000)
---------- ---------- ---------- ----------
Income before reduction for minority interest 243,032 200,280 451,927 347,219
Less minority interest income (loss) (6,928) (4,673) (13,911) (8,154)
---------- ---------- ---------- ----------
Net income $ 236,104 $ 195,607 $ 438,016 $ 339,065
---------- ---------- ---------- ----------
Earnings per share $ .71 $ .59 $ 1.31 $ 1.02
---------- ---------- ---------- ----------
</TABLE>
The accompanying note is an integral part of these financial statements.
(2)
<PAGE>
REPUBLIC CORPORATION AND SUBSIDIARY
Statement of Cash Flows
<TABLE>
<CAPTION>
Six Months Ended
June 30 June 30
1996 1995
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C>
Cash flows and operating activities:
Net income (loss) . . . . . . . . . . . . . . . . . . . . . . $ 438,016 $ 339,065
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation . . . . . . . . . . . . . . . . . . . 110,470 81,500
Provision for loan losses . . . . . . . . . . . . . 117,526 -0-
Amortization (accretion) of discounts and
Premium . . . . . . . . . . . . . . . . . . . (19,240) (15,232)
Other real estate gains/net . . . . . . . . . . . . -0- -0-
Investment securities gains/net . . . . . . . . . . -0- -0-
Loss on sale of subsidiary stock . . . . . . . . . 33,884 -0-
Re-appraisal - other real estate . . . . . . . . . -0- -0-
(Decrease) increase in interest payable . . . . . . 20,873 340,241
(Increase) decrease in interest receivable . . . . (97,690) (147,848)
(Increase) decrease in other assets . . . . . . . . 2,354 201,199
Increase (decrease) in other liabilities . . . . . (68,274) (90,222)
------------ ------------
Total adjustments . . . . . . . . . . . . . . . . . . . . . . . . 99,903 229,318
------------ ------------
Net cash provided by (used in) operating activities . . . . . . . 537,919 568,383
------------ ------------
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 . . . . . . . . . . . . . . (10,014,063) (9,932,031)
Loans made to customers net cash activity . . . . . . . . . . (5,653,695) (7,616,173)
Capital expenditure . . . . . . . . . . . . . . . . . . . . . (46,119) (136,955)
Proceeds from sale of other real estate . . . . . . . . . . . -0- -0-
------------ ------------
Net cash provided by (used in) investing activities . . . . . . . (5,703,877) (10,680,159)
------------ ------------
Cash flows from financing activities
Net increase (descrease) in demand deposits, NOW
account, savings accounts and certificates of deposit . . . . 3,315,199 9,931,501
Purchase of treasury stock. . . . . . . . . . . . . . . . . . . . -0- -0-
------------ ------------
Net cash provided by (used in) financing . . . . . . . . . . . . 3,315,199 9,931,501
------------ ------------
Net increase (descrease) in cash and cash equivalents . . . . . . (1,850,759) (180,275)
------------ ------------
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 June 30, 1996
Cash and due from banks . . . . . . . . . . . . . . . . . . . 2,587,002 2,693,298
Federal funds sold. . . . . . . . . . . . . . . . . . . . . . 28,575,000 36,650,000
------------ ------------
Cash and cash equivalents at June 30, 1996 . . . . . . . . . . . $ 31,162,002 $ 39,343,298
------------ ------------
------------ ------------
Supplemental disclosures of cash flow information:
Cash paid for interest . . . . . . . . . . . . . . . . . . . 1,991,443 1,763,864
Cash paid for income tax . . . . . . . . . . . . . . . . . . 234,289 138,718
</TABLE>
The accompanying note is an integral part of these financial statements.
(3)
<PAGE>
REPUBLIC CORPORATION AND SUBSIDIARY
Notes to Consolidated Financial Statements
June 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 due to default and ongoing
foreclosures on three single-family residential mortgages. It is the opinion of
mangement that the prospects are good that the bank will recoup the majority of
the amounts owing following the eventual sale of the properties. The apparent
resons for defaults on these loans are unrelated to each other or to economic
conditions in this community.
The increase in restructured loans is largely due to recent drought
conditions, depressed livestock prices, and the resulting effect of same on
the bank's more highly leveraged livestock borrowers. Interest rates were
recently lowered by 1% on approximately $1.2 mm in loans to borrowers of this
type.
<TABLE>
<CAPTION>
Table 1 PROBLEM ASSETS
(dollars in thousands) June 30 December 31
------- -------------------------------------
1996 1995 1994 1993
<S> <C> <C> <C> <C>
Nonaccrual loans $ 497 $ 183 $ 217 $ 313
Past-due loans (over 90 days) -0- -0- -0- -0-
Restructured loans 1,881 593 668 546
------- ------- ------- -------
Total problem loans $ 2,378 $ 776 $ 885 $ 859
Foreclosed assets
Real estate -0- -0- -0- -0-
In-substance foreclosures -0- -0- -0- -0-
Other -0- -0- -0- -0-
------- ------- ------- -------
Total Problem Assets $ 2,378 $ 776 $ 885 $ 859
Total problem loans as
a percentage of total loans 3.4% 1.2% 1.8% 2.4%
Total problem assets as a
percentage of total loans
and foreclosed assets 3.4% 1.2% 1.8% 2.4%
</TABLE>
<TABLE>
<CAPTION>
Table 2 LOAN CONCENTRATIONS
(dollars in thousands) June 30 December 31
------- ----------------------
1996 1995 1994
<S> <C> <C> <C>
Commercial $ 5,348 $ 4,892 $ 3,470
Agricultural 3,909 3,676 3,277
Real Estate-Construction 2,841 1,584 639
Real Estate-Mortgage 47,918 44,594 34,248
Installment loans to Individuals 9,006 8,679 7,504
------- ------- -------
Totals $69,022 $63,425 $49,138
</TABLE>
(5)
<PAGE>
SOURCES AND USES OF FUNDS
Approximately $3.3mm in deposit growth, $1.9mm in liquidated cash
equivalents and $5m provided by operating activities was deployed into the
bank's loan portfolio during the first half of 1996. (Please see Statement of
Cash Flows, P-3)
LIQUIDITY
Loan growth exceeded deposit growth by $2.3mm in the first six months of
1996, which further reduced the percentage of liabilities fully covered by
liquid assets. The level of cash and due from banks, federal funds sold and
U.S. Treasury Notes stood at approximately 40% of total liabilities at the end
of the second quarter of 1996, compared with 43% at year-end, 1995. (Please see
Balance Sheet, P-1)
INTEREST RATE SENSITIVITY MANAGEMENT
The bank is poised to survive a significant increase in market interest
rates, although not without some decline in net interest income. The necessity
for an upward adjustment to loan rates would intensify should market rates
increase by 100 basis points or more. (Please see Table 3, P-7)
(6)
<PAGE>
INTEREST RATE SENSITIVITY MANAGEMENT
Table 3 - REPRICING SCHEDULE
6-30-96
<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 * 13,265 45,944 8,942 366
Federal Funds Sold 28,575 -0- -0- -0-
Taxable Securities ** -0- -0- 10,011 -0-
Municipal Bonds -0- -0- -0- -0-
TOTAL 41,820 45,944 18,953 366
RATE SENSITIVE LIABILITIES
(Liabilities that can be
repriced within X days)
Time Certificates of Deposit 17,879 27,911 3,843 -0-
NOW Accounts 1,705 -0- -0- -0-
Super NOW Accounts 20,073 -0- -0- -0-
Savings Accounts 9,677 -0- -0- -0-
MMDA Accounts 5,119 -0- -0- -0-
TOTAL 54,453 27,911 3,843 -0-
Interest Rate Sensitivity Gap (12,613) 18,033 15,110 366
Cumulative Interest Rate
Sensitivity Gap (12,613) 10,840 25,950 26,316
* Does not include $497,000 in nonaccruing loans or overdrawn demand deposits of $8,000
** Does not include $24,000 in Federal Reserve Bank stock
</TABLE>
(7)
<PAGE>
<TABLE>
<CAPTION>
INVESTMENT SECURITIES
Table 4
CARRYING UNREALIZED UNREALIZED MARKET
VALUE GAINS LOSSES VALUE
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
JUNE 30, 1996
(1) Held-to-Maturity:
U.S. Treasury Securities 10,011,144 -- 45,519 9,965,625
Other -- -- -- --
(2) Available-for-Sale Securities
Carried at Fair Value:
U.S. Treasury Securities -- -- -- --
Other 24,000 -- -- 24,000
---------- ---------- ---------- ----------
10,035,144 -- 45,519 9,989,625
---------- ---------- ---------- ----------
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:
A rate of retained earnings growth in excess of asset growth has produced
an improved leverage ratio over the past six months. The slightly lower
risked-based capital ratios are the result of migration of low risk weight,
liquid assets to loans, which carry higher risk weights. (Please see Table 5,
P-9 and Balance Sheet, P-1)
Table 5 - CAPITAL
June 30 December
------- --------
1996 1995
Tier 1 risk-based capital
(minimum is 4%) 14.59% 14.73%
Tier 1 + Tier 2 risk based capital
(minimum is 8%) 15.84% 15.99%
Tier 1 leverage (minimum is 3%) 8.27% 8.09%
RESULTS OF OPERATIONS
NET INTEREST INCOME
Loan growth, coupled with lower aggregate deposit costs, has produced
improved net interest income and margin in the three and six month periods
ending June 30, 1996. (Please see Statement of Income, P-2)
OTHER INCOME AND EXPENSE
Increased charge-off, foreclosure and repossession activity and increased
loan restructuring has prompted a significant boost in reserves in the first
half of 1996.
The savings currently being experienced by virtue of the elimination of
FDIC insurance premiums has been offset by increased costs related to employee
compensation. (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: July 19, 1996 /s/ J. ED EISEMANN, IV
--------------------------
Chairman of the Board
Date: July 19, 1996 /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 JUNE 30, 1996 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO
SUCH FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> JUN-30-1996
<CASH> 2,587,002
<INT-BEARING-DEPOSITS> 0
<FED-FUNDS-SOLD> 28,575,000
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 24,000
<INVESTMENTS-CARRYING> 10,011,144
<INVESTMENTS-MARKET> 9,965,625
<LOANS> 69,021,540
<ALLOWANCE> 928,000
<TOTAL-ASSETS> 112,767,777
<DEPOSITS> 101,587,959
<SHORT-TERM> 0
<LIABILITIES-OTHER> 1,372,738
<LONG-TERM> 0
0
0
<COMMON> 356,844
<OTHER-SE> 9,194,963
<TOTAL-LIABILITIES-AND-EQUITY> 112,767,777
<INTEREST-LOAN> 2,959,040
<INTEREST-INVEST> 371,755
<INTEREST-OTHER> 709,854
<INTEREST-TOTAL> 4,040,649
<INTEREST-DEPOSIT> 2,012,316
<INTEREST-EXPENSE> 2,012,316
<INTEREST-INCOME-NET> 2,028,333
<LOAN-LOSSES> 117,526
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 1,347,278
<INCOME-PRETAX> 769,927
<INCOME-PRE-EXTRAORDINARY> 769,927
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 438,016
<EPS-PRIMARY> 1.31
<EPS-DILUTED> 1.31
<YIELD-ACTUAL> .075
<LOANS-NON> 497,000
<LOANS-PAST> 0
<LOANS-TROUBLED> 1,881,000
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 868,000
<CHARGE-OFFS> 62,000
<RECOVERIES> 4,000
<ALLOWANCE-CLOSE> 928,000
<ALLOWANCE-DOMESTIC> 110,000
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 818,000
</TABLE>
