<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, 1999. 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
<TABLE>
<CAPTION>
Common Stock, $1.00 par value Shares 356,844
- ----------------------------- -------
<S> <C>
Outstanding at Sept. 30,
1999, (excluding 23,119
shares held as treasury
shares)
</TABLE>
<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, 1998, and September 30, 1999. 1
Consolidated Statements of Income for the three months
and nine months ended September 30, 1998 and 1999. 2
Consolidated Statements of Cash Flows for the nine
months ended September 30, 1998 and 1999. 3
Notes to Financial Statements 4
Item 2. Management's Discussion and Analysis 5-10
Part II. Other Information 11
Signatures 12
</TABLE>
<PAGE>
REPUBLIC CORPORATION AND SUBSIDIARY
Balance Sheet
<TABLE>
<CAPTION>
September 30 December 31
1999 1998
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Assets
Cash and due from banks (demand) .............................. $ 6,004,793 $ 3,682,131
Investment securities:
Held-to-maturity
Market value at 9-30-99 37,784,703 ............
Market value at 12-31-98 23,869,050 ............ 37,784,703 23,864,557
Available-for-sale
Market value at 9-30-99 24,000 ............
Market value at 12-31-98 24,000 ............ 24,000 24,000
------------- -------------
$ 43,813,496 $ 27,570,688
Loans ......................................................... 96,073,394 94,569,025
Plus: Uncollected earned interest ..................... 839,750 847,969
Less: Allowance for losses ............................ (1,325,000) (1,233,000)
Net loans and other receivables ....................... 95,588,144 94,183,994
------------- -------------
Federal funds sold ............................................ 10,300,000 5,650,000
Property, equipment and vehicles (net) ....................... 2,602,941 2,610,729
Other real estate ............................................. 221,779 47,658
Goodwill ...................................................... 436,079 436,079
Other assets .................................................. 468,415 776,201
------------- -------------
Total assets .......................................... $153,430,854 $ 131,275,349
------------- -------------
Liabilities and Stockholders' Equity
Deposits (Domestic):
Demand (non-interest bearing) ......................... $ 18,227,878 $ 16,718,279
Savings, time and demand (Interest-bearing) .......... 120,836,077 100,632,666
------------- -------------
$139,063,955 $ 117,350,945
Accounts payable and accrued interest payable ................. 1,108,639 985,528
Accrued taxes payable ......................................... 397,452 641,266
------------- -------------
Total liabilities ..................................... $140,570,046 $ 118,977,739
------------- -------------
Minority Interest in Consolidated Subsidiary .................. 277,755 264,371
------------- -------------
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 9-30-99 and
23,119 at 12-31-98) .................................. (91,303) (91,303)
------------- -------------
Total contributed capital ...................... 500,472 500,472
------------- -------------
Retained earnings ............................................. 12,082,581 11,532,767
------------- -------------
Net Unrealized Gain (Loss) on Securities
Available-for-Sale (Net of Taxes) .................... -0- -0-
Stockholders'equity ............................ 12,583,053 12,033,239
------------- -------------
Total liabilities and stockholders equity ............. $153,430,854 $ 131,275,349
------------- -------------
</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
1999 1998 1999 1998
<S> <C> <C> <C> <C>
Interest Income
Interest and fees on loans $ 2,089,483 $ 1,968,034 $ 6,136,693 $ 5,652,721
Interest on funds sold and securities
purchased under agreement to resell 156,546 227,182 353,178 520,234
Interest and dividends on investments
Securities of U.S. Government and
government agencies 419,930 268,858 1,050,792 1,010,636
Obligations of states, political
subdivisions and other obligations
secured by the government -0- -0- -0- -0-
----------- ----------- ----------- -----------
Total interest on investments 576,476 496,040 1,403,970 1,530,870
----------- ----------- ----------- -----------
Total interest income 2,665,959 2,464,074 7,540,663 7,183,591
----------- ----------- ----------- -----------
Interest expense:
Interest on deposits 1,358,252 1,177,833 3,670,117 3,423,241
----------- ----------- ----------- -----------
Total Interest expense 1,358,252 1,177,833 3,670,117 3,423,241
----------- ----------- ----------- -----------
Net interest income 1,307,707 1,286,241 3,870,546 3,760,350
Provision for loan losses (46,658) (67,808) (154,392) (185,989)
----------- ----------- ----------- -----------
Net interest income after provision for
loan losses 1,261,049 1,218,433 3,716,154 3,574,361
----------- ----------- ----------- -----------
Other income:
Service charges on deposit accounts 55,215 53,096 160,221 153,061
Other service charges, commission and fees 81,077 66,409 213,193 186,314
Gain on sale of securities - - - -0-
Net income- other real estate 100 5,583 15,939 38,860
Other income 18,297 20,326 52,308 51,735
----------- ----------- ----------- -----------
Total other income 154,689 145,414 441,661 429,970
----------- ----------- ----------- -----------
Other expenses:
Salaries and wages 479,080 394,434 1,395,165 1,079,542
Employee benefits 126,201 92,154 346,700 252,523
Net occupancy expenses 88,268 59,981 229,192 193,018
Furniture and equipment expenses 24,104 42,774 89,624 95,907
Depreciation other than rental property 67,218 74,208 185,522 162,621
Net cost-other real estate - - - -0-
Computer service center 46,502 43,472 160,145 146,240
FDIC-insurance 3,785 3,268 14,351 16,692
Professional services 41,756 43,305 119,863 111,111
Advertising 39,222 45,363 101,564 88,597
Other operating expenses 224,106 192,792 598,491 509,601
----------- ----------- ----------- -----------
Total other expenses 1,140,242 991,751 3,240,617 2,655,852
----------- ----------- ----------- -----------
Income before income taxes 275,496 372,096 917,198 1,348,479
Less applicable income taxes (Current) 113,000 154,000 354,000 519,000
----------- ----------- ----------- -----------
Income before reduction for minority interest 162,496 218,096 563,198 829,479
Less minority interest income (loss) 3,901 5,062 13,384 19,241
----------- ----------- ----------- -----------
Net income $ 158,595 $ 213,034 $ 549,814 $ 810,238
----------- ----------- ----------- -----------
Earnings per share $ .48 $ .64 $ 1.65 $ 2.43
----------- ----------- ----------- -----------
</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
1999 1998
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Cash flows and operating activities:
Net income (loss) $ 549,814 $ 810,238
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation .......................................... 247,363 216,037
Provision for loan losses ............................. 154,392 185,989
Amortization (accretion) of discounts and
Premium .......................................... (1,050,072) (522,623)
Other real estate gains/net ........................... (15,839) (38,760)
Investment securities gains/net ....................... (100) -0-
Re-appraisal - other real estate ...................... -0- -0-
(Decrease) increase in interest payable ............... (123,111) (51,482)
(Increase) decrease in interest receivable ............ (8,219) (199,872)
(Increase) decrease in other assets ................... (219,409) 437,240
Increase (decrease) in other liabilities .............. 230,430 (172,290)
------------ ------------
Total adjustments ........................................................... (784,565) (145,761)
------------ ------------
Net cash provided by (used in) operating activities ......................... (234,751) 664,477
------------ ------------
Cash flows from investing activities
Proceeds from maturities of investment securities ................... 80,000,000 58,000,000
Purchase of investment securities.................................... (92,870,073) (53,181,717)
Loans made to customers net cash activity ........................... (1,407,708) (12,117,375)
Capital expenditure ................................................. (239,575) (965,650)
Proceeds from sale of other real estate ............................. 11,759 13,949
------------ ------------
Net cash provided by (used in) investing activities ......................... (14,505,597) (8,250,793)
------------ ------------
Cash flows from financing activities
Net increase (decrease) in demand deposits, NOW
account, savings accounts and certificates of deposit ............... 21,713,010 15,348,341
Purchase of treasury stock .......................................... -0- -0-
------------ ------------
Net cash provided by (used in) financing activities ......................... 21,713,010 15,348,341
------------ ------------
Net increase (decrease) in cash and cash equivalents ........................ 6,972,662 7,762,025
------------ ------------
Cash and cash equivalents at beginning of year:
Cash and due from banks ............................................. 3,682,131 3,467,3021
Federal funds sold .................................................. 5,650,000 11,150,000
------------ ------------
Cash and cash equivalents at beginning of year .............................. 9,332,131 14,617,302
============ ============
Cash and cash equivalents at Sept. 30, 1999
Cash and due from banks ............................................. 6,004,793 4,379,327
Federal funds sold .................................................. 10,300,000 18,000,000
------------ ------------
Cash and cash equivalents at Sept. 30, 1999 ................................. $ 16,304,793 $ 22,379,327
============ ============
Supplemental disclosures of cash flow information:
Cash paid for interest .............................................. 3,547,006 3,068,297
Cash paid for income tax ............................................ 330,168 515,414
</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, 1999
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, 1998. 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 are higher than the year-end, 1998 level due
to the pending foreclosures on two residential properties in the Trinidad
market. These properties, as well as the one commercial property already
classified as foreclosed real estate, are expected to sell in the near term for
amounts equivalent to or in excess of current book value. The restructured loan
total continues to represent a troubled commercial construction loan that has
been modified contractually to a lower interest rate.
TABLE 1 PROBLEM ASSETS
<TABLE>
<CAPTION>
(dollars in thousands) September 30 December 31
------------ ------------------------------------
1999 1998 1997 1996
<S> <C> <C> <C> <C>
Nonaccrual loans $ 530 $ 351 $ 809 $ 759
Past-due loans (over 90 days) -0- -0- -0- -0-
Restructured loans 283 741 2,465 2,148
------ ------ ------ ------
Total problem loans $ 813 $1,065 $3,274 $2,907
Foreclosed assets
Real estate 222 48 9 300
In-substance foreclosures -0- -0- -0- -0-
Other 12 28 5 34
------ ------ ------ ------
Total Problem Assets $1,047 $1,141 $3,288 $3,241
Total problem loans as
a percentage of total loans .8% 1.1% 4.1% 4.1%
Total problem assets as a
percentage of total loans
and foreclosed assets 1.1% 1.2% 4.1% 4.5%
</TABLE>
TABLE 2 LOAN CONCENTRATIONS
<TABLE>
<CAPTION>
(dollars in thousands) September 30 December31
------------- -----------------------
1999 1998 1997
<S> <C> <C> <C>
Commercial $ 7,138 $ 7,371 $ 5,762
Agricultural 3,973 4,156 3,459
Real Estate-Construction 5,889 6,423 1,960
Real Estate-Mortgage 68,453 66,652 59,562
Installment loans to Individuals 10,620 9,967 8,865
------- ------- -------
Totals $96,073 $94,569 $79,608
</TABLE>
(5)
<PAGE>
SOURCES AND USES OF FUNDS
Deposit growth for the first three quarters of 1999 came in at
$21,713,010, compared to $15,348,341 for the same period last year. The use
of these funds differed markedly, with the bulk of the 1999 growth being
deployed into short term investments and the bulk of the 1998 growth being
deployed into the loan portfolio. (Please see Statement of Cash Flows, P-3
and Balance Sheet, P-1)
LIQUIDITY
The total of cash and due from banks, short term securities and Fed
Funds Sold at period end came to 38% of total liabilities, significantly
higher than the 28% which prevailed at year-end, 1998. (Please see Balance
Sheet, P-1)
INTEREST RATE SENSITIVITY MANAGEMENT
The relationship between rate sensitive assets and liabilities
maturing in two years or less has not materially changed year to date in 1999
since substantially all of the growth in rate sensitive deposits has been
offset by similar growth in short term, rate sensitive assets. ( Please see
Table 3, P-7)
(6)
<PAGE>
INTEREST RATE SENSITIVITY MANAGEMENT
Table 3 - REPRICING SCHEDULE
9-30-99
<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 * 14,314 50,187 30,853 189
Federal Funds Sold 10,300 -0- -0- -0-
Taxable Securities ** 38,000 -0- -0- -0-
Municipal Bonds -0- -0- -0- -0-
TOTAL 62,614 50,187 30,853 189
RATE SENSITIVE LIABILITIES
(Liabilities that can be
repriced within X days)
Time Certificates of Deposit 28,738 29,967 5,640 -0-
NOW Accounts 2,160 -0- -0- -0-
Super NOW Accounts 30,755 -0- -0- -0-
Savings Accounts 9,809 -0- -0- -0-
MMDA Accounts 14,086 -0- -0- -0-
TOTAL 85,548 29,967 5,640 -0-
Interest Rate Sensitivity Gap (22,934) 20,220 25,213 189
Cumulative Interest Rate
Sensitivity Gap (22,934) (2,714) 22,499 22,688
</TABLE>
* Does not include $530,000 in nonaccruing loans or overdrawn demand
deposits of $8,000
** 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, 1999
(1) Held-to-Maturity:
U.S. Treasury Securities -- -- -- --
Other 37,784,703 -- -- 37,784,703
(2) Available-for-Sale Securities
Carried at Fair Value:
U.S. Treasury Securities -- -- -- --
Other 24,000 -- -- 24,000
---------- ---------- ---------- ----------
37,808,703 -- -- 37,808,703
---------- ---------- ---------- ----------
DECEMBER 31, 1998
(1) Held-to-Maturity:
U.S. Treasury Securities -- -- -- --
Other 23,864,557 4,493 -- 23,869,050
(2) Available-for-Sale Securities
Carried at Fair Value:
U.S. Treasury Securities -- -- -- --
Other 24,000 -- -- 24,000
---------- ---------- ---------- ----------
23,888,557 4,493 -- 23,893,050
---------- ---------- ---------- ----------
DECEMBER 31, 1997
(1) Held-to-Maturity:
U.S. Treasury Securities 12,036,450 -- 2,700 12,033,750
Other 15,951,840 -- 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
---------- ---------- ---------- ----------
</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 rapid asset growth year to date, coupled with the modest growth
in retained earnings, caused the Tier 1 leverage ratio to decline
significantly from the year-end, 1998 level. Both risk-based capital ratios
increased, however, since practically all of the asset growth during 1999 has
been in low risk investment categories. (Please see Table 5, P-9)
TABLE 5 - CAPITAL
<TABLE>
<CAPTION>
*September 30 December 31
1999 1998
------------- -----------
<S> <C> <C>
Tier 1 risk-based capital
(minimum is 4%) 14.37% 14.16%
Tier 1 + Tier 2 risk based capital
(minimum is 8%) 15.63% 15.41%
Tier 1 leverage (minimum is 3%) 8.07% 8.80%
*Estimate
</TABLE>
RESULTS OF OPERATIONS
NET INTEREST INCOME
Growth in net interest income has slowed significantly due to the
reduced loan demand in 1999 and consequent growth in lower yielding
investments, coupled with the disproportionately greater impact of Fed
tightening on the bank's deposit costs. (Please see Statement of Income, P-2)
OTHER INCOME AND EXPENSE
Loan loss provisions are somewhat lower due to much reduced loan
growth and slightly lower risk exposure in the loan portfolio.
Non-interest income rose due to growth in loan fee income over the
prior year period.
The significant growth in non-interest expense, largely driven by
growth in salaries, is tied to the recent expansion of facilities and
staffing. (Please see Statement of Income, P-2)
(9)
<PAGE>
YEAR 2000 READINESS
The Bank has made substantial progress in implementing its Y2K
preparedness plan. The plan consists of the following five phases:
AWARENESS PHASE - The creation of a basic strategy for project
management.
ASSESSMENT PHASE - The identification of mission critical
systems and equipment as well as customer and provider
relationships that may be vulnerable to the year 2000 problem.
RENOVATION PHASE - The upgrading or replacement of systems and
equipment known to be deficient.
VALIDATION PHASE - The comprehensive testing of all systems and
equipment to ensure that they survive each of as many as 13
suspect dates.
IMPLEMENTATION PHASE - The correction of any deficiencies
uncovered in the validation phase along with the continued
assessment and testing of systems and equipment.
The awareness and assessment phases were completed during the first
quarter of 1998. The renovation phase was substantially completed by the end
of 1998 with the exception of credit reporting software at the bank's main
facility. Compliant credit reporting software was installed during the second
quarter of 1999. The validation phase is ongoing and on schedule and
substantially all testing has now been performed at least once. Of primary
importance during this phase is the proxy testing of all applications
currently provided by the bank's third party provider of computing services.
These services are highly critical to bank operations and any significant
interruptions in them could materially impact the bank's results. Finally,
the implementation phase is ongoing and will continue beyond the end of the
millennium.
Management is of the opinion that its readiness plan is more than
adequate to address the year 2000 threat and that all systems and hardware
will function as intended when the time comes, without any material adverse
effect on the company's business. Due to the uniqueness of the year 2000
issue and the direct impact it can have on bank operations, however, it is
not possible to escape risk and uncertainty, particularly that which is tied
to third party service providers. The bank has, as mentioned, an ongoing
process to monitor these critical third parties and has developed business
resumption and contingency plans that address failures from these sources.
Management is not aware of any material expenditures that could be necessary
in order to complete its year 2000 readiness plan or contingency plans.
(10)
<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.
(11)
<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 22, 1999 /s/ J. Ed Eisemann, IV
--------------------------
Chairman of the Board
Date: October 22, 1999 /s/ Catherine G. Eisemann
--------------------------
Director
(12)
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 9
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM REGISTRANT'S
FORM 10-Q, DATED SEPT 30, 1999 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO
SUCH FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-START> JAN-01-1999
<PERIOD-END> SEP-30-1999
<CASH> 6,004,793
<INT-BEARING-DEPOSITS> 0
<FED-FUNDS-SOLD> 10,300,000
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 24,000
<INVESTMENTS-CARRYING> 37,784,703
<INVESTMENTS-MARKET> 37,784,703
<LOANS> 96,073,394
<ALLOWANCE> 1,325,000
<TOTAL-ASSETS> 153,430,854
<DEPOSITS> 139,063,955
<SHORT-TERM> 0
<LIABILITIES-OTHER> 1,506,091
<LONG-TERM> 0
0
0
<COMMON> 356,844
<OTHER-SE> 12,226,209
<TOTAL-LIABILITIES-AND-EQUITY> 153,430,854
<INTEREST-LOAN> 6,136,693
<INTEREST-INVEST> 1,050,792
<INTEREST-OTHER> 353,178
<INTEREST-TOTAL> 7,540,663
<INTEREST-DEPOSIT> 3,670,117
<INTEREST-EXPENSE> 3,670,117
<INTEREST-INCOME-NET> 3,870,546
<LOAN-LOSSES> 154,392
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 3,240,617
<INCOME-PRETAX> 917,198
<INCOME-PRE-EXTRAORDINARY> 917,198
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 549,814
<EPS-BASIC> 1.65
<EPS-DILUTED> 1.65
<YIELD-ACTUAL> 0.70
<LOANS-NON> 530,000
<LOANS-PAST> 0
<LOANS-TROUBLED> 283,000
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 1,233,000
<CHARGE-OFFS> 104,000
<RECOVERIES> 42,000
<ALLOWANCE-CLOSE> 1,325,000
<ALLOWANCE-DOMESTIC> 109,000
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 1,216,000
</TABLE>
