<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, 1998. 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,
1998, (excluding 23,119
shares held as treasury
shares)
<PAGE>
THE REPUBLIC CORPORATION
Index to Quarterly Report on Form 10-Q
<TABLE>
<CAPTION>
Page
----
<S> <C>
Part I. Financial Information
Item 1. Financial Statements (unaudited)
Consolidated Balance Sheets
December 31, 1997, and September 30, 1998. 1
Consolidated Statements of Income for the three months
and nine months ended September 30, 1997 and 1998. 2
Consolidated Statements of Cash Flows for the nine months
ended September 30, 1997 and 1998. 3
Notes to Financial Statements 4
Item 2. Management's Discussion and Analysis 5-9
Part II. Other Information 10
Signatures 11
</TABLE>
<PAGE>
REPUBLIC CORPORATION AND SUBSIDIARY
Balance Sheet
<TABLE>
<CAPTION>
September 30 December 31
1998 1997
------------- -------------
<S> <C> <C>
Assets
Cash and due from banks (demand) . . . . . . . . . . . . . . $ 4,379,327 $ 3,467,302
Investment securities:
Held-to-maturity
Market value at 9-30-98 23,692,630. . . . . . . . . . .
----------
Market value at 12-31-97 27,985,306. . . . . . . . . . . 23,692,630 27,988,290
----------
Available-for-sale
Market value at 9-30-98 24,000
----------
Market value at 12-31-97 24,000. . . . . . . . . . . 24,000 24,000
---------- ------------- -------------
$ 28,095,957 $ 31,479,592
Loans . . .. . . . . . . . . . . . . . . . . . . . . . . . . 91,650,009 79,608,471
Plus: Uncollected earned interest. . . . . . . . . . . . . 853,313 653,441
Less: Allowance for losses . . . . . . . . . . . . . . . . (1,179,000) (1,070,000)
Net loans and other receivables. . . . . . . . . . . . . . 91,324,322 79,191,912
------------- -------------
Federal funds sold . . . . . . . . . . . . . . . . . . . . . 18,000,000 11,150,000
Property, equipment and vehicles (net) . . . . . . . . . . . 2,592,168 1,842,555
Other real estate. . . . . . . . . . . . . . . . . . . . . . 32,659 9,000
Goodwill . . . . . . . . . . . . . . . . . . . . . . . . . . 436,079 436,079
Other assets . . . . . . . . . . . . . . . . . . . . . . . . 643,404 1,080,644
------------- -------------
Total assets . . . . . . . . . . . . . . . . . . . . . . . $ 141,124,589 $ 125,189,782
------------- -------------
Liabilities and Stockholders' Equity
Deposits (Domestic):
Demand (non-interest bearing). . . . . . . . . . . . . . . $ 18,867,553 $ 14,999,271
Savings, time and demand (Interest-bearing). . . . . . . . 108,438,181 96,958,122
------------- -------------
$ 127,305,734 $ 111,957,393
Accounts payable and accrued interest payable. . . . . . . . 1,102,128 1,153,610
Accrued taxes payable. . . . . . . . . . . . . . . . . . . . 555,653 747,184
------------- -------------
Total liabilities. . . . . . . . . . . . . . . . . . . . . $ 128,963,515 $ 113,858,187
------------- -------------
Minority Interest in Consolidated Subsidiary . . . . . . . . 262,153 242,912
------------- -------------
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 9-30-98 and
23,119 at 12-31-97). . . . . . . . . . . . . . . . . . . . (91,303) (91,303)
------------- -------------
Total contributed capital . . . . . . . . . . . . . . . 500,472 500,472
------------- -------------
Retained earnings. . . . . . . . . . . . . . . . . . . . . . 11,398,449 10,588,211
------------- -------------
Net Unrealized Gain (Loss) on Securities
Available-for-Sale (Net of Taxes). . . . . . . . . . . . . -0- -0-
Stockholders'equity . . . . . . . . . . . . . . . . . . 11,898,921 11,088,683
------------- -------------
Total liabilities and stockholders equity. . . . . . . . . $ 141,124,589 $ 125,189,782
------------- -------------
</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
1998 1997 1998 1997
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Interest Income
Interest and fees on loans $1,968,034 $1,733,788 $5,652,721 $4,998,301
Interest on funds sold and securities
purchased under agreement to resell 227,182 223,129 520,234 913,677
Interest and dividends on investments
Securities of U.S. Government and
government agencies 268,858 348,390 1,010,636 739,732
Obligations of states, political
subdivisions and other obligations
secured by the government -0- -0- -0- -0-
---------- ---------- ---------- ----------
Total interest on investments 496,040 571,519 1,530,870 1,653,409
---------- ---------- ---------- ----------
Total interest income 2,464,074 2,305,307 7,183,591 6,651,710
---------- ---------- ---------- ----------
Interest expense:
Interest on deposits 1,177,833 1,182,879 3,423,241 3,297,423
---------- ---------- ---------- ----------
Total Interest expense 1,177,833 1,182,879 3,423,241 3,297,423
---------- ---------- ---------- ----------
Net interest income 1,286,241 1,122,428 3,760,350 3,354,287
Provision for loan losses (67,808) (42,457) (185,989) (185,246)
---------- ---------- ---------- ----------
Net interest income after provision for
loan losses 1,218,433 1,079,971 3,574,361 3,169,041
---------- ---------- ---------- ----------
Other income:
Service charges on deposit accounts 53,096 49,251 153,061 142,353
Other service charges, commission and fees 66,409 58,294 186,314 176,307
Gain on sale of securities -0- -0- -0- -0-
Net income- other real estate 5,583 42,295 38,860 72,465
Other income 20,326 13,227 51,735 60,815
---------- ---------- ---------- ----------
Total other income 145,414 163,067 429,970 451,940
---------- ---------- ---------- ----------
Other expenses:
Salaries and wages 394,434 310,464 1,079,542 891,150
Employee benefits 92,154 84,154 252,523 217,485
Net occupancy expenses 59,981 48,136 193,018 146,993
Furniture and equipment expenses 42,774 29,056 95,907 61,822
Depreciation other than rental property 74,208 35,775 162,621 106,149
Net cost-other real estate -0- -0- -0- -0-
Computer service center 43,472 44,635 146,240 123,777
FDIC-insurance 3,268 -0- 16,692 6,021
Professional services 43,305 37,002 111,111 119,658
Advertising 45,363 14,248 88,597 40,822
Other operating expenses 192,792 163,966 509,601 463,822
---------- ---------- ---------- ----------
Total other expenses 991,750 767,436 2,655,852 2,177,699
---------- ---------- ---------- ----------
Income before income taxes 372,097 475,602 1,348,479 1,443,282
Less applicable income taxes (Current) 154,000 ( 176,000) 519,000 (552,000)
---------- ---------- ---------- ----------
Income before reduction for minority interest 218,097 299,602 829,479 891,282
Less minority interest income (loss) (5,062) (6,901) (19,241) (20,566)
---------- ---------- ---------- ----------
Net income $ 213,035 $ 292,701 $ 810,238 $ 870,716
---------- ---------- ---------- ----------
Earnings per share $ .64 $ .88 $ 2.43 $ 2.61
---------- ---------- ---------- ----------
</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
1998 1997
------------ ------------
<S> <C> <C>
Cash flows and operating activities:
Net income (loss) . . . . . . . . . . . . . . . . . . . . . $ 810,238 $ 870,716
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation. . . . . . . . . . . . . . . . . . . 216,037 140,916
Provision for loan losses . . . . . . . . . . . . 185,989 185,246
Amortization (accretion) of discounts and
Premium . . . . . . . . . . . . . . . . . . . . (522,623) (286,753)
Other real estate gains/net . . . . . . . . . . . (38,760) (72,465)
Investment securities gains/net . . . . . . . . . -0- -0-
Re-appraisal - other real estate. . . . . . . . . -0- 12,500
(Decrease) increase in interest payable . . . . . (51,482) 334,328
(Increase) decrease in interest receivable. . . . (199,872) (107,576)
(Increase) decrease in other assets . . . . . . . 437,240 179,212
Increase (decrease) in other liabilities. . . . . (172,290) 48,231
------------ ------------
Total adjustments. . . . . . . . . . . . . . . . . . . . . . . . (145,761) 433,639
------------ ------------
Net cash provided by (used in) operating activities. . . . . . . 664,477 1,304,355
------------ ------------
Cash flows from investing activities
Proceeds from sales of investment securities. . . . . . . . -0- -0-
Proceeds from maturities of investment securities . . . . . 58,000,000 45,000,000
Purchase of investment securities . . . . . . . . . . . . . (53,181,717) (62,671,689)
Loans made to customers net cash activity . . . . . . . . . (12,117,375) (6,977,735)
Capital expenditure . . . . . . . . . . . . . . . . . . . . (965,650) (107,798)
Proceeds from sale of other real estate . . . . . . . . . . 13,949 222,424
------------ ------------
Net cash provided by (used in) investing activities. . . . . . . (8,250,793) (24,534,798)
------------ ------------
Cash flows from financing activities
Net increase (decrease) in demand deposits, NOW
account, savings accounts and certificates of deposit . . . 15,348,341 9,194,841
Purchase of treasury stock . . . . . . . . . . . . . . . . . . . -0- -0-
------------ ------------
Net cash provided by (used in) financing activities. . . . . . . 15,348,341 4,221,733
------------ ------------
Net increase (decrease) in cash and cash equivalents . . . . . . 7,762,025 (14,035,602)
------------ ------------
Cash and cash equivalents at beginning of year:
Cash and due from banks . . . . . . . . . . . . . . . . . . 3,467,302 3,273,580
Federal funds sold. . . . . . . . . . . . . . . . . . . . . 11,150,000 27,125,000
------------ ------------
Cash and cash equivalents at beginning of year.. . . . . . . . . 14,617,302 30,398,580
------------ ------------
------------ ------------
Cash and cash equivalents at Sept. 30, 1998
Cash and due from banks.. . . . . . . . . . . . . . . . . . 4,379,327 3,637,978
Federal funds sold... . . . . . . . . . . . . . . . . . . . 18,000,000 12,725,000
------------ ------------
Cash and cash equivalents at Sept. 30, 1998. . . . . . . . . . . $ 22,379,327 $ 16,362,978
------------ ------------
------------ ------------
Supplemental disclosures of cash flow information:
Cash paid for interest... . . . . . . . . . . . . . . . . . 3,068,297 3,103,361
Cash paid for income tax. . . . . . . . . . . . . . . . . . 515,414 368,289
</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, 1998
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, 1997. 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
Loans placed on non-accrual and restructured loans declined from
year-end, 1997 levels by virtue of reclassification and liquidation. The
loans presently classified as restructured will be repriced to prevailing
interest rates once the respective maturity dates are reached.
Table 1 PROBLEM ASSETS
<TABLE>
<CAPTION>
(dollars in thousands) September 30 December 31
------------ ------------------------------
1998 1997 1996 1995
<S> <C> <C> <C> <C>
Nonaccrual loans $ 451 $ 809 $ 759 $ 183
Past-due loans (over 90 days) -0- -0- -0- -0-
Restructured loans 786 2,465 2,148 593
------- ------- ------- ------
Total problem loans $ 1,237 $ 3,274 $ 2,907 $ 776
Foreclosed assets
Real estate 33 9 300 -0-
In-substance foreclosures -0- -0- -0- -0-
Other 13 5 34 -0-
------- ------- ------- ------
Total Problem Assets $ 1,283 $ 3,288 $ 3,241 $ 776
Total problem loans as
a percentage of total loans 1.35% 4.1% 4.1% 1.2%
Total problem assets as a
percentage of total loans
and foreclosed assets 1.40% 4.1% 4.5% 1.2%
</TABLE>
Table 2 LOAN CONCENTRATIONS
<TABLE>
<CAPTION>
(dollars in thousands) September 30 December 31
------------ --------------------
1998 1997 1996
<S> <C> <C> <C>
Commercial $ 7,182 $ 5,762 $ 5,716
Agricultural 4,366 3,459 3,787
Real Estate-Construction 5,527 1,960 3,087
Real Estate-Mortgage 65,083 59,562 50,228
Installment loans to Individuals 9,492 8,865 8,775
-------- -------- --------
Totals $ 91,650 $ 79,608 $ 71,593
</TABLE>
(5)
<PAGE>
SOURCES AND USES OF FUNDS
Deposit growth of $15.3 mm was deployed primarily into loan growth of
$12.1 mm and growth of $7.8 mm in cash equivalent assets, tempered with a
$4.8 mm reduction in investment securities. (Please see Statement of Cash
Flows, P-3)
LIQUIDITY
Liquidity was slightly lower at period end compared with year-end 1997
levels. Cash and due from banks, federal funds sold and short term
securities represented 35.72% of total liabilities on September 30, 1998,
compared with 37.42% on December 31, 1997. Loan growth in excess of liquid
asset growth was the primary reason for the decline. (Please see Balance
Sheet, P-1)
INTEREST RATE SENSITIVITY MANAGEMENT
Bank earnings are most at risk in the event short term interest rates
rise. An increase of 200 basis points in the front end of the money market
would cause an approximate decline of 11% in after tax earnings, based upon
the maturity and repricing data depicted in Table 3 on Page 7.
(6)
<PAGE>
INTEREST RATE SENSITIVITY MANAGEMENT
Table 3 - REPRICING SCHEDULE
9-30-98
<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 * 9,340 38,273 43,046 508
Federal Funds Sold 18,000 -0- -0- -0-
Taxable Securities ** 12,000 12,000 -0- -0-
Municipal Bonds -0- -0- -0- -0-
TOTAL 39,340 50,273 43,046 508
RATE SENSITIVE LIABILITIES
(Liabilities that can be
repriced within X days)
Time Certificates of Deposit 22,190 29,023 4,686 -0-
NOW Accounts 1,721 -0- -0- -0-
Super NOW Accounts 18,951 -0- -0- -0-
Savings Accounts 9,376 -0- -0- -0-
MMDA Accounts 22,504 -0- -0- -0-
TOTAL 74,742 29,023 4,686 -0-
Interest Rate Sensitivity Gap (35,402) 21,250 38,360 508
Cumulative Interest Rate
Sensitivity Gap (35,402) (14,152) 24,208 24,716
</TABLE>
* Does not include $451,000 in nonaccruing loans or overdrawn demand
deposits of $32,000
** 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>
September 30, 1998
- -------------------
(1) Held-to-Maturity:
U.S. Treasury Securities -- -- -- --
Other 23,692,630 -- -- 23,692,630
(2) Available-for-Sale Securities
Carried at Fair Value:
U.S. Treasury Securities -- -- -- --
Other 24,000 -- -- 24,000
---------- ---------- ---------- ----------
23,716,630 -- -- 23,716,630
---------- ---------- ---------- ----------
December 31, 1997
- -----------------
(1) Held-to-Maturity:
U.S. Treasury Securities 12,036,450 -- 2,700 12,033,750
Other 12,951,840 -- 284 15,951,556
(2) Available-for-Sale Securities
Carried at Fair Value:
U.S. Treasury Securities -- -- -- --
Other 24,000 -- -- 24,000
---------- ---------- ---------- ----------
28,012,290 -- 2,984 28,009,306
---------- ---------- ---------- ----------
December 31, 1996
- -----------------
(1) Held-to-Maturity:
U.S. Treasury Securities 10,006,368 -- 21,993 9,984,375
Other -- -- -- --
(2) Available-for-Sale Securities
Carried at Fair Value:
U.S. Treasury Securities -- -- -- --
Other 24,000 -- -- 24,000
---------- ---------- ---------- ----------
10,030,368 -- 21,993 10,008,375
---------- ---------- ---------- ----------
</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:
All capital ratios fell in comparison with year-end 1997 levels due to a
short term deposit in excess of $9 mm which was included in the September 30,
1998 deposit totals. Absent this deposit, both risk based capital ratios
would be similar to year-end levels and the leverage ratio would be slightly
higher. (Please see Table 5, P-9)
Table 5 - CAPITAL
<TABLE>
<CAPTION>
*September 30 December 31
------------- -----------
1998 1997
<S> <C> <C>
Tier 1 risk-based capital
(minimum is 4%) 14.11% 15.34%
Tier 1 + Tier 2 risk based capital
(minimum is 8%) 15.37% 16.60%
Tier 1 leverage (minimum is 3%) 8.28% 8.66%
*Estimate
</TABLE>
RESULTS OF OPERATIONS
NET INTEREST INCOME
Net interest income was higher in the three and nine month periods
ending September 30, 1998 when compared with the year-ago period. Loan
growth and a leveling off in deposit interest expense are the primary reasons
for the increase. (Please see Statement of Income, P-2)
OTHER INCOME AND EXPENSE
The loan loss provision was comparable to the year-ago period and
remains high due to brisk loan growth.
Non-interest income, notwithstanding the effect of gains on the sale of
foreclosed real estate, remains at year-ago levels.
Expansion of facilities and staffing, as well as higher operating
levels, has caused the pronounced growth in non-interest expense. (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 19, 1998 /S/ J. Ed Eisemann, IV
--------------------------
Chairman of the Board
Date: October 19, 1998 /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 SEPT. 30, 1998 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO
SUCH FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> SEP-30-1998
<CASH> 4,379,327
<INT-BEARING-DEPOSITS> 0
<FED-FUNDS-SOLD> 18,000,000
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 24,000
<INVESTMENTS-CARRYING> 23,692,630
<INVESTMENTS-MARKET> 23,692,630
<LOANS> 91,650,009
<ALLOWANCE> 1,179,000
<TOTAL-ASSETS> 141,124,589
<DEPOSITS> 127,305,734
<SHORT-TERM> 0
<LIABILITIES-OTHER> 1,657,781
<LONG-TERM> 0
0
0
<COMMON> 356,844
<OTHER-SE> 11,542,077
<TOTAL-LIABILITIES-AND-EQUITY> 141,124,589
<INTEREST-LOAN> 5,652,721
<INTEREST-INVEST> 1,010,636
<INTEREST-OTHER> 520,234
<INTEREST-TOTAL> 7,183,591
<INTEREST-DEPOSIT> 3,423,241
<INTEREST-EXPENSE> 3,423,241
<INTEREST-INCOME-NET> 3,760,350
<LOAN-LOSSES> 185,989
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 2,655,852
<INCOME-PRETAX> 1,348,479
<INCOME-PRE-EXTRAORDINARY> 1,348,479
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 810,238
<EPS-PRIMARY> 2.43
<EPS-DILUTED> 2.43
<YIELD-ACTUAL> .072
<LOANS-NON> 451,000
<LOANS-PAST> 0
<LOANS-TROUBLED> 786,000
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 1,070,000
<CHARGE-OFFS> 122,000
<RECOVERIES> 45,000
<ALLOWANCE-CLOSE> 1,179,000
<ALLOWANCE-DOMESTIC> 257,000
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 922,000
</TABLE>
