<PAGE>
FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
QUARTERLY REPORT UNDER SECTION 13 or 15 (d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For Quarter Ended March 31, 1997 Commission File Number 1-8052
TORCHMARK CORPORATION
(Exact name of registrant as specified in its charter)
DELAWARE 63-0780404
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
2001 3rd Avenue South, Birmingham, Alabama 35233
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (205) 325-4200
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
to be filed 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 reports), and (2) has been subject to such filing
requirements for the past 90 days. Yes X No
Indicate the number of shares outstanding for each of the issuer's classes of
common stock, as of the latest practicable date.
CLASS OUTSTANDING AT APRIL 30, 1997
Common Stock, 69,275,222
$1.00 Par Value
Index of Exhibits (Page 10)
Total number of pages included are 11.
<PAGE>
TORCHMARK CORPORATION
INDEX
<TABLE>
<CAPTION>
Page
----
<S> <C>
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements:
Consolidated Balance Sheet 1
Consolidated Statement of Operations 2
Consolidated Statement of Cash Flow 3
Notes to Consolidated Financial Statements 4
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 5
PART II. OTHER INFORMATION
Item 1. Legal Proceedings 9
Item 6. Exhibits and Reports on Form 8-K 10
</TABLE>
<PAGE>
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
TORCHMARK CORPORATION
CONSOLIDATED BALANCE SHEET
(Amounts in thousands)
<TABLE>
<CAPTION>
March 31, December 31,
Assets: 1997 1996
------------------ ---------------------
<S> <C> <C>
Investments:
Fixed maturities, available for sale, at fair value
(amortized cost: 1997 - $5,317,182;
1996 - $5,265,499) $5,272,812 $5,328,276
Equity securities, at fair value
(cost: 1997 - $3,340; 1996 - $3,799) 9,075 8,858
Mortgage loans, at cost (estimated fair value:
1997 - $70,165; 1996 - $61,970) 73,978 64,353
Investment real estate, at depreciated cost 152,164 150,490
Policy loans 209,811 206,959
Other long-term investments ( at fair value) 96,895 95,485
Short-term investments 226,225 85,099
------------------ ---------------------
Total investments 6,040,960 5,939,520
Cash 4,223 18,272
Investment in unconsolidated subsidiaries 91,341 88,051
Accrued investment income 92,892 91,837
Other receivables 121,644 112,291
Deferred acquisition costs 1,291,847 1,253,727
Value of insurance purchased 237,156 244,368
Property and equipment 52,039 50,323
Goodwill 536,796 540,540
Other assets 32,755 41,846
Separate account assets 1,491,522 1,420,025
------------------ ---------------------
Total assets $9,993,175 $9,800,800
================== =====================
Liabilities and Shareholders' Equity:
Liabilities:
Future policy benefits $4,850,665 $4,797,738
Unearned and advance premiums 84,737 83,670
Policy claims and other benefits payable 216,812 220,121
Other policyholders' funds 80,864 80,812
------------------ ---------------------
Total policy liabilities 5,233,078 5,182,341
Accrued income taxes 343,421 340,287
Short-term debt 87,369 40,910
Long-term debt (estimated fair value:
1997 - $795,657 ; 1996 - $814,082) 792,071 791,880
Other liabilities 214,574 202,869
Separate account liabilities 1,491,522 1,420,025
------------------ ---------------------
Total liabilities 8,162,035 7,978,312
Monthly income preferred securities (estimated
fair value: 1997 - $210,000 ; 1996 - $210,000 ) 193,159 193,145
Shareholders' equity:
Preferred stock 0 0
Common stock 73,784 73,784
Additional paid-in capital 144,422 141,701
Unrealized investment gains, net of tax (14,055) 46,581
Retained earnings 1,602,646 1,549,391
Treasury stock, at cost (168,816) (182,114)
------------------ ---------------------
Total shareholders' equity 1,637,981 1,629,343
------------------ ---------------------
Total liabilities and shareholders' equity $9,993,175 $9,800,800
================== =====================
</TABLE>
See accompanying Notes to Consolidated Financial Statements.
1
<PAGE>
TORCHMARK CORPORATION
CONSOLIDATED STATEMENT OF OPERATIONS
(Unaudited and in thousands except per share data)
<TABLE>
<CAPTION>
Three Months Ended
March 31,
-------------------------------------
1997 1996
-------------- --------------
<S> <C> <C>
Revenue:
Life premium $ 222,360 $ 209,307
Health premium 187,600 188,168
Other premium 5,730 4,713
-------------- --------------
Total premium 415,690 402,188
Financial services revenue 48,363 44,337
Net investment income 103,634 99,417
Realized investment gains (losses) (10,831) 4,713
Other income 214 168
-------------- --------------
Total revenue 557,070 550,823
Benefits and expenses:
Life policyholder benefits 144,948 136,406
Health policyholder benefits 114,701 115,521
Other policyholder benefits 13,432 12,375
-------------- --------------
Total policyholder benefits 273,081 264,302
Amortization of deferred acquisition costs 56,523 55,457
Commissions and premium taxes 35,982 36,012
Financial services selling expense 12,327 12,286
Other operating expense 37,848 40,082
Amortization of goodwill 3,744 3,744
Interest expense 17,874 19,644
-------------- --------------
Total benefits and expenses 437,379 431,527
Income before income taxes and
equity in earnings of unconsolidated affiliates 119,691 119,296
Income taxes (43,456) (43,643)
Equity in earnings of unconsolidated subsidiaries 3,482 3,040
Monthly income preferred securities dividend (2,389) (2,419)
-------------- --------------
Net income $ 77,328 $ 76,274
============== ==============
Net income per share $ 1.11 $ 1.06
============== ==============
</TABLE>
See accompanying Notes to Consolidated Financial Statements.
2
<PAGE>
TORCHMARK CORPORATION
CONSOLIDATED STATEMENT OF CASH FLOW
(Amounts in thousands)
<TABLE>
<CAPTION>
Three Months Ended
March 31,
-----------------------------------
1997 1996
--------------- --------------
<S> <C> <C>
Cash provided from operations $129,692 $125,866
Cash provided from (used for) investment activities: Investments sold or
matured:
Fixed maturities available for sale - sold 238,219 37,398
Fixed maturities available for sale - matured, called, and repaid 100,604 86,861
Other long-term investments 12,471 6,296
--------------- --------------
Total investments sold or matured 351,294 130,555
Investments acquired:
Fixed maturities (401,871) (168,310)
Other long-term investments (27,235) (14,825)
--------------- --------------
Total investments acquired (429,106) (183,135)
Net decrease (increase) in short-term investments (141,126) (33,182)
Proceeds from sale of discontinued energy operations 25,502 0
Dividend from discontinued affiliate 0 35,625
Disposition of properties 250 27
Additions to properties (1,029) (1,250)
--------------- --------------
Cash used for investment activities (194,215) (51,360)
Cash provided from (used for) financing activities:
Issuance of common stock 9,438 2,192
Additions to debt 46,591 0
Repayments of debt (65) (86,477)
Cash dividends paid to shareholders (22,404) (20,785)
Net receipts from deposit product operations 16,914 23,988
--------------- --------------
Cash used for financing activities 50,474 (81,082)
Net increase (decrease) in cash (14,049) (6,576)
Cash at beginning of year 18,272 13,158
--------------- --------------
Cash at end of period $4,223 $6,582
=============== ==============
</TABLE>
See accompanying Notes to Consolidated Financial Statements.
3
<PAGE>
TORCHMARK CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE A - Accounting Policies
The accompanying unaudited consolidated financial statements have been
prepared in accordance with the instructions to Form 10-Q, and, therefore, do
not include all disclosures required by generally accepted accounting
principles. However, in the opinion of management, these statements include all
adjustments, consisting of normal recurring accruals, which are necessary for a
fair presentation of the consolidated financial position at March 31, 1997, and
the consolidated results of operations for the periods ended March 31, 1997, and
1996.
4
<PAGE>
Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations
Operating Results
For the first quarter of 1997, Torchmark Corporation's ("Torchmark's") net
income was $77 million, compared with $76 million for the same period of 1996.
On a per-share basis, net income was $1.11 in 1997, gaining 5% over 1996 net
income of $1.06. During the first quarter of 1997, a net realized investment
loss of $11 million was taken to offset tax return gains, as compared with a net
realized gain of $5 million for the first quarter of 1996. After exclusion of
realized investment gains or losses and the related adjustment to deferred
acquisition costs, net of taxes, earnings per share were $1.21 in the 1997
period, compared with $1.03 in the same period of 1996, an increase of 17%.
Average shares outstanding declined 3% to 69.8 million in the 1997 period, as a
result of Torchmark's share purchases made in the latter half of 1996.
Revenues rose 1% to $557 million in the 1997 quarter. Excluding realized
investment gains and losses, the revenue increase was 4% over the 1996 period.
Total premium increased 3% to $416 million. Life premium grew 6% to $222
million for the three months of 1997, while health premium was flat at $188
million. Life premium comprised 53% of total premium in the 1997 period,
compared with 52% in the 1996 period and 37% in 1992. The growth in life
premium relative to health premium underscores Torchmark's increased emphasis on
life products. Financial services revenues gained 9% to $48 million, while net
investment income rose 4% to $104 million.
Litigation expense at Torchmark's Alabama-based insurer, Liberty National
Life Insurance Company, declined $4 million in a quarter-over-quarter
comparison, contributing to a decline in Torchmark's operating expense.
Operating expense declined 5% to $42 million for the 1997 three months. As a
percentage of revenue, operating expenses fell from 8.0% in the 1996 period to
7.5%. Interest expense declined $2 million or 9% because of lower average
short-term debt, resulting from debt paydowns since March, 1996. A discussion
of Torchmark's operations follows under the appropriate captions.
Life insurance. Life insurance premium rose 6% to $222 million in the
first quarter of 1997, from $209 million in the same period a year ago.
Annualized life premium in force grew 6% over the prior year and was $961
million at March 31, 1997, compared with $904 million a year earlier.
Annualized life insurance premium in force represented 56% of Torchmark's total
annualized premium in force at March 31, 1997, compared with 54% the same date a
year earlier. Life insurance sales, in terms of annualized premium issued,
were $54 million in both the 1997 and 1996 first quarters. Benefits and
acquisition expenses as a percentage of premium were stable in both periods at
82%.
Health insurance. Premium income for Torchmark's health insurance
products was level at $188 million for the 1997 first quarter. Annualized
health insurance premium in
5
<PAGE>
force rose 1% to $763 million at March 31, 1997. This is Torchmark's first
year-over-year increase in annualized health premium in force since 1993.
Medicare Supplement annualized premium in force gained slightly to $532 million
at March 31, 1997 compared with $531 million a year earlier. The improvement in
Medicare Supplement in force premium resulted primarily from premium rate
increases. Cancer annualized premium in force grew 11% to $127 million, also as
a result of premium rate increases. Comparing the first three months of 1997 to
the same period of 1996, sales of health insurance, as measured by annualized
premium issued, were level at $25 million. Operating margins for health
insurance remained steady compared to the year ago quarter.
Annuities. Torchmark's annuities are sold on both a fixed and a variable
basis. Fixed annuity collections were $20 million in the 1997 period, compared
with $22 million collected in the 1996 period. Collections of variable
annuities were $48 million in the 1997 quarter, declining slightly from variable
collections of $49 million in 1996. Fixed annuities on deposit with Torchmark
were $980 million at March 31, 1997, gaining 5% over the same date a year ago.
The variable annuity balance on deposit rose 27% during the same period. This
balance was $1.4 billion at March 31, 1997, compared with $1.1 billion a year
ago. Growth in the variable account balance was a result of strong financial
markets throughout 1996 and early 1997 as well as the additional collections.
Policy charges for annuities for the 1997 three months were $5.7 million
compared with $4.7 million for the 1996 period, an increase of 22%. Policy
charges are assessed against the annuity account balance periodically for
insurance risk, sales, administration, and cash surrender. The increase in
policy charges resulted primarily from the growth in variable annuities over
the prior-year period.
Investment. Torchmark's investment income rose 4% in the first quarter of
1997 to $104 million from $99 million in the same quarter of 1996. Mean
invested assets at amortized cost increased to $6.0 billion for the quarter, a
6%increase over the previous period.
First quarter 1997 yields available for new investments were significantly
higher than yields in the 1996 first quarter. During the 1997 quarter, fixed
maturity investments of $397 million were made at an average yield of 7.3% and
had an estimated average life of 9.4 years, compared with $168 million made
during the same quarter of 1996, with an average yield of 6.5% and an average
maturity of 12.1 years. Sales of fixed maturities in 1997 accounted for the
higher level of funds available for investment. Acquisitions continue to
emphasize call protected, medium maturity obligations.
Sales of municipal and corporate holdings in the amount of $238 million
were completed in the 1997 quarter. These sales were made as a result of the
declining attractiveness of tax-sheltered income, relative strength in the
municipal market, and the desire to offset tax return realized capital gains
with losses.
Fixed maturity investments represented 87% of total invested assets at
March 31,
6
<PAGE>
1997. Although interest rates increased during the quarter, new investments were
made slightly below the average portfolio yield. At quarter end, the fixed
maturity portfolio had a 7.6 year average life and effective duration of 4.8
years, compared with 7.8 years and 4.9 years, respectively, for 1996 year end.
Because of the increase in rates during 1997, the $5.3 billion portfolio had a
$44 million, or 1%, unrealized loss at the end of the quarter.
Financial services. Financial services revenues increased 9% to $48 million
for the first quarter of 1997 over the prior period. Asset management fees, the
largest component of financial services revenues, rose 11% to $27 million. These
fees are based on the amount of assets under management. Average assets under
management rose 4% in the 1997 quarter versus the same 1996 period. Assets under
management were $18.8 billion at March 31, 1997, $18.9 billion at year-end 1996,
and $19.1 billion at March 31, 1996. Growth in fee revenue was greater than the
growth in average assets due to the loss of several large accounts in 1996 with
lower than average fees. Commission revenues from investment product sales
declined 3% to $17.7 million in the 1997 period from $18.2 million for the prior
period. Investment product sales of $362 million in the 1997 period declined 11%
compared with $405 million in the same period of 1996, which was the highest
collection quarter on record. Sales of United Funds were down 3% to $262
million, while sales of Waddell & Reed Funds declined 40% to $47 million.
Variable annuity sales fell 7% to $53 million. Commissions from the sale of
insurance products were $3.4 million in the 1997 quarter, compared with $3.5
million in the 1996 quarter. Service fees increased 27% to $7.5 million. The sum
of all financial services revenue components is greater than total financial
services revenue because the portion of commission related to sales of the
insurance and variable annuity products of United Investors Life Insurance
Company is eliminated in consolidation. Direct expenses for financial services
declined as a percentage of revenues from 27.7% in the 1996 quarter to 25.5% in
the 1997 quarter because most of these expenses are fixed costs. The financial
services pretax profit margin increased from 52% in the 1996 period to 54%.
Financial Condition
Liquidity. Torchmark's liquidity is very strong, as evidenced by its
positive cash flow, its marketable investments, and the availability of a line
of credit facility. Torchmark's insurance and asset-management operations
generate cash flows in excess of immediate requirements. Torchmark's net cash
inflows from operations were $130 million in the first three months of 1997,
compared with $126 million in the same period of 1996, resulting in a 3%
increase. In addition to cash flows from operations, Torchmark received $101
million in investment maturities or repayments during 1997.
At the end of March, 1997, Torchmark had $230 million in cash and short-
term investments, more than double the $103 million at December 31, 1996. Cash
and short-term investments represented 2.3% of total assets at March 31, 1997,
compared with approximately 1% at year-end 1996. In addition, Torchmark's entire
portfolio of fixed-
7
<PAGE>
income and equity securities, in the amount of $5.3 billion at market value on
March 31, 1997, is available for sale should a need arise. The increase in
short-term investments was caused by the previously-mentioned sales of fixed
maturities at 1997 first quarter end to offset taxable realized gains. These
funds were reinvested early in April, 1997.
Torchmark has in place a line of credit facility, which is also designed as
a backup credit line for a commercial paper program. This program provides
credit up to a maximum amount of $600 million, and permits Torchmark to borrow
from either the credit line or issue commercial paper at any time up to the
combined facility maximum of $600 million. Terms of the facility permit
borrowing up to the maximum amount at variable interest rates. Torchmark is
subject to certain covenants regarding capitalization and earnings, with which
Torchmark was in full compliance at March 31, 1997. At that date, Torchmark had
commercial paper outstanding in the amount of $87 million and no borrowings on
the line of credit. At December 31, 1996, $41 million in commercial paper was
outstanding.
Capital resources. Torchmark's debt outstanding at March 31, 1997 was $879
million, compared with $833 million at December 31, 1996 and $895 million at
March 31, 1996. Debt as a percentage of total capitalization was 32% at March
31, 1997, counting the Monthly Income Preferred Securities as equity and
excluding the effects on equity of an accounting rule requiring market
revaluation of fixed securities and an adjustment to deferred acquisition costs
based on changes in interest rates in the financial markets. The debt to
capitalization ratio was also 32% at year-end 1996 and 34% at March 31, 1996.
Torchmark's 8 5/8% Sinking Fund Debentures due 2017 are subject to a
mandatory $8 million repayment during the twelve months ending March 31, 1998.
In addition to this mandatory repayment, Torchmark may elect to repay an
additional $12 million during this same period at par value. Torchmark currently
intends to make both of these repayments, with accrued interest, on July 15,
1997.
Shareholders' equity was $1.64 billion at March 31, 1996, compared with
$1.63 billion at 1996 year end. Shareholders' equity was $1.55 billion one year
ago. Book value per share was $23.40 at quarter end, compared with $23.38 at
year-end 1996 and $21.55 a year earlier. Shareholders' equity is impacted by the
previously-mentioned accounting rule that requires equity to be adjusted for the
fluctuations in the market values of fixed investments and deferred acquisition
costs based on changes in interest rates. After adjusting shareholders' equity
to remove the effects of rate fluctuations on an after-tax basis, shareholders'
equity was $1.66 billion at March 31, 1997, compared with $1.59 billion at 1996
year end and $1.52 billion a year ago. On a per share basis, book value was
$23.76 at the end of the first quarter of 1997, compared with $22.84 at year-end
1996 and $21.15 at March 31, 1996. Growth in shareholders' equity over the prior
year was attained despite share purchases during the second half of 1996 in the
amount of $107 million. Annualized return on common equity, adjusted to exclude
the effects of the accounting rule and realized investment gains and losses, was
20.7% for the 1997 three-
8
<PAGE>
month period, compared with 19.8% for the same period of 1996.
Torchmark intends to effect a two-for-one stock split in the form of a
stock dividend to be paid on August 1, 1997. This split is conditioned on
shareholder approval of an increase in authorized common stock to a total of 320
million shares.
PART II - OTHER INFORMATION
Item 1. Legal Proceedings.
Torchmark and its subsidiaries continue to be named as parties to pending
or threatened legal proceedings. These lawsuits involve tax matters, alleged
breaches of contract, torts, including bad faith and fraud claims based on
alleged wrongful or fraudulent acts of agents of Torchmark's insurance
subsidiaries, employment discrimination, and miscellaneous other causes of
action. Many of these lawsuits involve claims for punitive damages in the state
courts of Alabama, a jurisdiction particularly recognized for its large punitive
damage verdicts. Some of such actions involving Liberty National Life Insurance
Company ("Liberty") also name Torchmark as a defendant. As a practical matter,
a jury's discretion regarding the amount of a punitive damage award is not
limited by any clear, objective criteria under Alabama law. Accordingly, the
likelihood or extent of a punitive damage verdict in any given case is virtually
impossible to predict. As of March 31, 1996, Liberty was a party to
approximately 290 active lawsuits (including 23 employment related cases and
excluding interpleader and stayed cases), approximately 255 of which were
Alabama proceedings in which punitive damages were sought. Liberty faces trial
settings in these cases on an on-going basis.
As previously reported in a Form 8-K dated April 10, 1996, Torchmark's
subsidiary Liberty is a party to Harris v. Liberty National Life Insurance
-----------------------------------------
Company (CV-96-01836), a purported class action filed in the Circuit Court of
- -------
Jefferson County, Alabama in March 1996. In this action, the plaintiffs allege
that a class of persons were insured under Liberty cancer policies when Liberty
knew that such persons were participants in Medicaid, Medicare and/or CHAMPUS
and were not entitled to retain any benefits under these policies. No class has
been certified in Harris. On March 21, 1997, a purported class action with
------
substantially similar allegations was filed in the Circuit Court of St. Clair
County, Alabama (Gentry v. Liberty National Life Insurance Company, CV-97-61 ).
-------------------------------------------------
A class certification hearing in Gentry has been set for May 21, 1997.
------
9
<PAGE>
Item 6. Exhibits and Reports on form 8-K.
(a) Exhibits.
(11) Statement re computation of per share earnings.
(b) Reports on Form 8-K.
A Form 8-K dated March 13, 1997 was filed to report the U.S. Supreme
Court's dismissal of certiorari in Adams v. Robertson and Liberty National Life
--------------------------------------------
Insurance Company. No financial statements were required to be filed.
- -----------------
10
<PAGE>
SIGNATURES
Pursuant to the requirement of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
TORCHMARK CORPORATION
Date: May 9, 1997 /s/ Keith A. Tucker
----------------------------------
Keith A. Tucker, Vice Chairman
Date: May 9, 1997 /s/ Gary L. Coleman
----------------------------------
Gary L. Coleman, Vice President and
Chief Accounting Officer
<PAGE>
Exhibit 11. Statement re computation of per share earnings.
TORCHMARK CORPORATION
COMPUTATION OF EARNINGS PER SHARE
<TABLE>
<CAPTION>
Three months ended March 31,
1997 1996
-------------------- -------------------
<S> <C> <C>
Net income $77,327,581 $76,274,272
Preferred dividends 0 0
-------------------- -------------------
Net income available to common shareholders $77,327,581 $76,274,272
==================== ===================
Weighted average shares and common
stock equivalents outstanding 69,805,861 71,715,019
==================== ===================
Primary earnings per share:
Net income $1.11 $1.06
==================== ===================
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 7
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> MAR-31-1997
<DEBT-HELD-FOR-SALE> 5,272,812
<DEBT-CARRYING-VALUE> 0
<DEBT-MARKET-VALUE> 0
<EQUITIES> 9,075
<MORTGAGE> 73,978
<REAL-ESTATE> 152,164
<TOTAL-INVEST> 6,040,960
<CASH> 4,223
<RECOVER-REINSURE> 0
<DEFERRED-ACQUISITION> 1,529,003
<TOTAL-ASSETS> 9,993,175
<POLICY-LOSSES> 4,850,665
<UNEARNED-PREMIUMS> 84,737
<POLICY-OTHER> 216,812
<POLICY-HOLDER-FUNDS> 80,864
<NOTES-PAYABLE> 879,440
193,159
0
<COMMON> 73,784
<OTHER-SE> 1,564,197
<TOTAL-LIABILITY-AND-EQUITY> 9,993,175
415,690
<INVESTMENT-INCOME> 103,634
<INVESTMENT-GAINS> (10,831)
<OTHER-INCOME> 48,577
<BENEFITS> 273,081
<UNDERWRITING-AMORTIZATION> 56,523
<UNDERWRITING-OTHER> 107,775
<INCOME-PRETAX> 119,691
<INCOME-TAX> 43,456
<INCOME-CONTINUING> 77,328
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 77,328
<EPS-PRIMARY> 1.11
<EPS-DILUTED> 0
<RESERVE-OPEN> 0
<PROVISION-CURRENT> 0
<PROVISION-PRIOR> 0
<PAYMENTS-CURRENT> 0
<PAYMENTS-PRIOR> 0
<RESERVE-CLOSE> 0
<CUMULATIVE-DEFICIENCY> 0
</TABLE>
