FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
X QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended SEPTEMBER 30, 1996
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from to
Commission file number 0-5907
1st SOURCE CORPORATION
(Exact name of registrant as specified in its charter)
INDIANA 35-1068133
(State of other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
100 North Michigan Street South Bend, Indiana 46601
(Address of principal executive offices) (Zip Code)
(219) 235-2702
(Registrant's telephone number, including area code)
Not Applicable
(Former name, former address and former fiscal year, if changed since last
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
Number of shares of common stock outstanding as of September 30, 1996 -
12,481,700 shares.
PART I. FINANCIAL INFORMATION
ITEM 1. Financial Statements
Page
Consolidated statements of financial condition -- 3
September 30, 1996, and December 31, 1995
Consolidated statements of income -- 4
three months and nine months ended September 30, 1996
and 1995
Consolidated statements of cash flows -- 5
nine months ended September 30, 1996 and 1995
Notes to the Consolidated Financial Statement 6
-2-
<TABLE>
<CAPTION>
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
1st Source Corporation and Subsidiaries
(Dollars in thousands)
September 30, December 31,
1996 1995
<S> <C> <C>
ASSETS
Cash and due from banks $98,911 $94,517
Interest bearing deposits with other banks 6,046 2,946
Investment securities:
Securities available-for-sale, at fair value
(amortized cost of $283,362 and $270,621
at September 30, 1996 and December 31, 1995) 281,309 270,290
Securities held-to-maturity, at amortized cost
(fair value of $126,426 and $132,383 at
September 30, 1996 and December 31, 1995) 122,198 126,085
Total Investment Securities 403,507 396,375
Loans - net of unearned discount 1,407,391 1,259,415
Reserve for loan losses (29,540) (27,470)
Net Loans 1,377,851 1,231,945
Premises and equipment 26,114 23,383
Other assets 64,455 50,091
Total Assets $1,976,884 $1,799,257
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits:
Noninterest bearing $190,835 $190,045
Interest bearing 1,357,409 1,251,704
Total Deposits 1,548,244 1,441,749
Federal funds purchased and securities
sold under agreements to repurchase 129,335 101,166
Other short-term borrowings 78,333 51,813
Other liabilities 35,302 30,109
Long-term debt 19,613 21,819
Total Liabilities 1,810,827 1,646,656
Shareholders' equity:
Common stock-no par value 5,700 5,429
Capital surplus 69,947 56,337
Retained earnings 97,491 96,952
Less cost of common stock in treasury (6,563) (6,497)
Unrealized appreciation (depreciation) of
investment securities, net (518) 380
Total Shareholders' Equity 166,057 152,601
Total Liabilities and Shareholders' Equity $1,976,884 $1,799,257
</TABLE>
-3-
<TABLE>
<CAPTION>
CONSOLIDATED STATEMENTS OF INCOME
1st Source Corporation and Subsidiaries
(Dollars in thousands, except per share amounts)
Three Months Ended September 30 Nine Months Ended September 30
1996 1995 1996 1995
<S> <C> <C> <C> <C>
Interest Income:
Loans, including fees $ 32,080 $ 28,729 $ 92,326 $ 82,081
Investment securities:
Taxable 3,726 3,699 11,294 11,347
Tax-exempt 2,040 1,902 6,064 5,655
Other 195 441 469 910
Total Interest Income 38,041 34,771 110,153 99,993
Interest Expense:
Deposits 16,429 14,654 47,454 41,296
Short-term borrowings 2,005 1,909 5,783 4,874
Long-term debt 347 445 1,032 1,437
Total Interest Expense 18,781 17,008 54,269 47,607
Net Interest Income 19,260 17,763 55,884 52,386
Provision for Loan Losses 1,431 1,059 3,833 2,200
Net Interest Income After
Provision for Loan Losses 17,829 16,704 52,051 50,186
Other Income:
Trust fees 1,574 1,724 5,030 5,098
Service charges on deposit accounts 1,272 1,298 3,626 3,729
Mortgage servicing fees, commission income and other 4,420 2,029 9,838 5,453
Investment securities and other gains (losses) 0 (16) 127 (160)
Total Other Income 7,266 5,035 18,621 14,120
Other Expense:
Salaries and employee benefits 9,406 8,509 26,969 24,844
Net occupancy expense 1,211 947 3,527 2,717
Furniture and equipment expense 1,510 1,359 4,167 4,164
Insurance expense 135 46 380 1,764
Other 3,552 2,516 9,290 7,416
Total Other Expense 15,814 13,377 44,333 40,905
Income Before Income Taxes 9,281 8,362 26,339 23,401
Income taxes 3,258 2,929 9,169 8,002
Net Income $ 6,023 $ 5,433 $ 17,170 $ 15,399
Per Common Share: <F1>
Net Income $ 0.47 $ 0.42 $ 1.34 $ 1.20
Dividends $ 0.080 $ 0.070 $ 0.240 $ 0.210
Weighted Average Common Shares Outstanding 12,778,698 12,860,989 12,788,159 12,827,388
<FN>
<F1>The computation of per share data gives retroactive recognition to a 5
percent stock dividend declared on January 22, 1996.
</FN>
</TABLE>
-4-
<TABLE>
<CAPTION>
CONSOLIDATED STATEMENTS OF CASH FLOWS
1st Source Corporation and Subsidiaries
(Dollars in thousands)
Nine Months Ended September 30
1996 1995
<S> <C> <C>
Operating Activities:
Net income $ 17,170 $ 15,399
Adjustments to reconcile net income to net cash
provided by operating activities:
Provision for loan losses 3,833 2,200
Depreciation of premises and equipment 2,902 1,818
Amortization of investment security premiums
and accretion of discounts, net 552 703
Deferred income taxes (26) (1,017)
Realized investment securities (gains) losses (127) 160
Increase in interest receivable (574) (1,625)
Increase in interest payable 5,869 8,198
Other (14,122) (903)
Net Cash Provided by Operating Activities 15,477 24,933
Investing Activities:
Proceeds from sales and maturities of investment securities 76,432 56,833
Purchases of investment securities (85,710) (79,047)
Net increase in short-term investments (3,100) (5,135)
Loans sold or participated to others 109,141 48,385
Net increase in loans made to customers
and principal collections on loans (257,177) (139,989)
Principal payments received under leases 4,759 1,488
Purchase of assets to be leased (6,250) (6,069)
Purchases of premises and equipment (4,494) (3,056)
Other 699 (195)
Net Cash Used in Investing Activities (165,700) (126,785)
Financing Activities:
Net increase (decrease) in demand deposits, NOW
accounts and savings accounts 657 (44,171)
Net increase in certificates of deposit 105,838 110,560
Net increase in short-term borrowings 54,690 38,467
New Long-Term Debt 140 -
Payments on long-term debt (2,346) (6,237)
Acquisition of treasury stock (1,349) (1,184)
Cash dividends (3,000) 2,638
Other (13) (12)
Net Cash Provided by Financing Activities 154,617 94,785
Increase in Cash and Cash Equivalents 4,394 (7,067)
Cash and Cash Equivalents, Beginning of Year 94,517 79,226
Cash and Cash Equivalents, End of Period $ 98,911 $ 72,159
</TABLE>
-5-
Notes to the Consolidated Financial Statements
1. The unaudited consolidated condensed financial statements have been
prepared in accordance with the insturctions for Form 10-Q and therefore
do not include all information and footnotes necessary for a fair
presentation of financial position, results of operations and cash flows
in conformity with generally accepted accounting principles. The
information furnished herein reflects all adjustments which are, in
the opinion of management, necessary for a fair presentation of the
results for the interim periods for which this report is submitted.
2. 1st Source adopted Statement of Financial Accounting Standards No. 122,
"Accounting for Mortgage Servicing Rights" (SFAS No. 122) on January
1, 1996. The new standard requires mortgage banking enterprises to
recognize as separate assets the rights to service mortgage loans for
others, however those mortgage servicing rights are acquired. SFAS 122
also requires that mortgage banking enterprises assess capitalized
mortgage servicing rights based on the fair value of those rights on a
disaggregated basis. As of September 30, 1996, 1st Source has capital-
ized $1,119,000 of originated mortgage servicing rights. The adoption
of SFAS No. 122 has had no material impact on the financial statements.
3. 1st Source adopted Statement of Financial Accounting Standards No. 123,
"Accounting for Stock-Based Compensation" (SFAS No. 123) on January 1,
1996. This Statement requires the fair value of stock options and other
stock-based compensation issued to employees to either be included as
compensation expense in the statement of income, or the pro forma effect
on net income and earnings per share of such statements. 1st Source
adopted SFAS No. 123 on a disclosure basis only and, accordingly, the
adoption of this Statement will not have a material impact on the
Company's financial position.
4. 1st Source will adopt Financial Accounting Standard No. 125 (SFAS 125),
"Accounting for Transfers and Servicing of Financial Assets and
Extinguishment of Liabilities," as of January 1, 1997. SFAS 125 requires
that after a transfer of financial assets, an entity must recognize the
financial and servicing assets controlled and liabilities incurred and
dereognize financial assets and liabilities in which control is
surrendered or when debt is extinguished. The impact on 1st Source's
financial position and results of operations is not expected to be
material.
-6-
PART I.
ITEM 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations
This discussion and analysis should be read in conjunction with the Company's
consolidated condensed financial statements and the financial and statistical
data appearing elsewhere in this report. The amounts shown in this analysis
have been adjusted to reflect tax-exempt income on a tax equivalent basis
using a 40.525% rate.
1st Source has entered into two off-balance sheet interest rate swaps as
part of its interest rate risk management strategy. The swaps are being used
to hedge against the company's Prime floating rate loans. The notional amount
of the first swap as of September 30, 1996, is $28 million. It has a maturity
date of January, 2002, and has a current fair value of $(774,000). The second
swap also has a notional amount of $28 million as of September 30, 1996. It
has a maturity date of March, 2001, and has a fair value of $(453,000).
The Company pays a variable interest rate (one-month LIBOR) on each swap and
receives a fixed rate. The interest rate swaps are the most efficient means
of protecting the bank net interest rate margin in a declining interest rate
environment. Conversely, if interest rates increase, the increased contri-
bution to net interest income from on-balance sheet assets will substantially
offset any negative impact on net interest income from these swap transactions.
-7-
COMPARISON OF THREE- AND NINE-MONTH PERIODS
ENDED SEPTEMBER 30, 1996 AND 1995
Net income for the three-month and nine-month periods ended September 30,
1996, was $6,023,000 and $17,170,000, respectively, compared to $5,433,000
and $15,399,000 for the equivalent periods in 1995. The primary reasons for
the increase were an increase in net interest income and a strong increase in
other income offset by an increase in the provision for loan losses and only
a modest increase in other expense.
Net income per share increased to $0.47 and $1.34, respectively, for the
three-month and nine-month periods ended September 30, 1996, from $0.42 and
$1.20 in 1995. Return on average equity was 14.45% for the nine months ended
September 30, 1996, compared to 14.70% in 1995. The return on total average
assets was 1.23% for the nine months ended September 30, 1996, compared to
1.24% in 1995.
NET INTEREST INCOME
The taxable equivalent net interest income for the three-month period ended
September 30, 1996, was $20,199,000, an increase of 8.08% over the same period
in 1995, resulting in a net yield of 4.47% compared to 4.62% in 1995. The
fully taxable equivalent net interest income for the nine-month period ended
September 30, 1996, was $58,719,000, an increase of 6.31% over 1995, resulting
in a net yield of 4.50% compared to 4.77% in 1995.
Total average earning assets increased 11.92% and 12.55%, respectively, for
the three-month and nine-month periods ended September 30, 1996, over the
comparative periods in 1995. Total average investment securities increased
6.23% and 7.52%, respectively, for the three-month and nine-month periods due
to an increase in municipal securities, while a 15.52% and 15.34% increase for
the three-month and nine-month periods for average loans occurred primarily in
transportation and equipment loans. The taxable equivalent yields on total
average earning assets were 8.63% and 8.82% for the three-month period ended
September 30, 1996, and 1995, and 8.66% and 8.88% for the nine-month period
ended September 30, 1996, and 1995.
Average deposits increased 13.31% and 11.86%, respectively, for the three-
month and nine-month periods over the same periods from 1995. The cost rate
on average interest-bearing funds was 4.84% and 4.93% for the three-month
periods ended September 30, 1996, and 1995, and 4.86% and 4.81% for the nine-
month periods ended September 30, 1996, and 1995. The majority of the growth
in deposits from last year has occurred in time deposits of $100 thousand and
over and time deposits less than one year.
The following table sets forth consolidated information regarding average
balances and rates.
-8-
<TABLE>
<CAPTION>
DISTRIBUTION OF ASSETS, LIABILITIES AND SHAREHOLDERS' EQUITY
INTEREST RATES AND INTEREST DIFFERENTIAL
(Dollars in thousands)
Three months ended September 30,
1996 1995
Interest Interest
Average Income/ Yield/ Average Income/ Yield/
Balance Expense Rate Balance Expense Rate
<S> <C> <C> <C> <C> <C> <C>
ASSETS:
Interest bearing deposits $ 3,032 $ 41 5.38% $ 1,109 $ 8 2.76%
Investment securities:
Taxable 248,113 3,726 5.97% 242,767 3,698 6.04%
Tax exempt <F1> 146,919 2,952 7.99% 130,841 2,797 8.48%
Net loans <F2><F3> 1,387,767 32,106 9.20% 1,201,305 28,761 9.50%
Other investments 11,248 154 5.45% 29,596 433 5.81%
Total Earning Assets 1,797,079 38,980 8.63% 1,605,618 35,697 8.82%
Cash and due from banks 77,921 70,841
Reserve for loan losses (29,089) (26,237)
Other assets 85,396 70,561
Total $1,931,307 $1,720,783
LIABILITIES AND SHAREHOLDERS' EQUITY:
Interest bearing deposits $1,365,301 16,249 4.73% $1,199,022 14,654 4.85%
Short-term borrowings 159,505 2,004 5.00% 147,952 1,909 5.12%
Long-term debt 19,694 347 7.02% 22,035 445 8.02%
Total Interest Bearing Liabilities 1,544,500 18,781 4.84% 1,369,009 17,008 4.93%
Noninterest bearing deposits 189,725 173,366
Other liabilities 34,353 31,978
Shareholders' equity 162,729 146,430
Total $1,931,307 $1,720,783
Net Interest Income $20,199 $18,689
Net Yield on Earning Assets on a Taxable
Equivalent Basis 4.47% 4.62%
Nine months ended September 30,
1996 1995
Interest Interest
Average Income/ Yield/ Average Income/ Yield/
Balance Expense Rate Balance Expense Rate
ASSETS:
Interest bearing deposits $ 2,875 $ 111 5.16% $ 1,004 $ 19 2.58%
Investment securities
Taxable 248,788 11,294 6.06% 242,446 11,347 6.26%
Tax exempt <F1> 145,068 8,798 8.10% 125,518 8,376 8.92%
Net loans <F2><F3> 1,336,250 92,428 9.24% 1,158,569 82,212 9.49%
Other Investments 8,877 358 5.39% 20,128 890 5.91%
Total Earning Assets 1,741,857 112,989 8.66% 1,547,665 102,844 8.88%
Cash and due from banks 74,576 72,724
Reserve for loan losses (28,245) (25,388)
Other assets 78,425 69,377
Total $1,866,613 $1,664,378
LIABILITIES AND SHAREHOLDERS' EQUITY:
Interest bearing deposits $1,318,707 47,454 4.81% $1,171,554 41,296 4.71%
Short-term borrowings 152,067 5,783 5.08% 128,230 4,874 5.08%
Long-term debt 20,180 1,033 6.83% 23,789 1,438 8.08%
Total Interest Bearing Liabilities 1,490,954 54,270 4.86% 1,323,573 47,608 4.81%
Noninterest bearing deposits 184,146 171,968
Other liabilities 32,745 28,808
Shareholders' equity 158,768 140,029
Total $1,866,613 $1,664,378
Net Interest Income $58,719 $55,236
Net Yield on Earning Assets on a Taxable
Equivalent Basis 4.50% 4.77%
<FN>
<F1> Interest income includes the effects of taxable equivalent adjustments,
using a 40.525% rate for 1996 and 1995. Tax equivalent adjustments for
the three-month periods were $912 in 1996 and $895 in 1995, and for the
nine-month periods were $2,733 in 1996 and $2,721 in 1995.
<F2> Loan income includes fees on loans for the three-month periods of $810
in 1996 and $684 in 1995, and for the nine-month periods of $2,284 in
1996 and $2,096 in 1995. Loan income also includes the effects of taxable
equivalent adjustments, using a 40.525% rate for 1996 and 1995. The tax
equivalent adjustments for the three-month periods were $27 in 1996 and
$31 in 1995, and for the nine-month periods were $102 in 1996 and $130 in
1995.
<F3> For purposes of this computation, nonaccruing loans are included in the
daily average loan amounts outstanding.
</FN>
</TABLE>
-9-
PROVISION FOR LOAN LOSSES
The provision for loan losses for the three-month period ended September 30,
1996, and 1995, was $1,431,000 and $1,059,000, respectively, and was $3,833,000
and $2,200,000 for the nine-month periods ended September 30, 1996, and 1995.
Net Charge-Offs of $431,000 have been recorded for the three-month period ended
September 30, 1996, compared to $941,000 of Net Recoveries for the same period
in 1995. Year-to-date Net Charge-Offs of $1,763,000 have been recorded in
1996, compared to Net Recoveries of $1,664,000 through September 1995. The
reserve for loan losses was $29,540,000 or 2.10% of net loans at September 30,
1996, compared to $27,470,000 or 2.18% of net loans at December 31, 1995.
Nonperforming assets at September 30, 1996, were $8,265,000 compared to
$6,584,000 at December 31, 1995, an increase of 25.53%. At September 30,
1996, nonperforming assets were .59% of net loans compared to .52% at December
31, 1995. It is management's opinion that the reserve for loan losses is
adequate to absorb anticipated losses in the loan portfolio as of September
30, 1996.
OTHER INCOME
Other income for the three-month periods ended September 30, 1996, and 1995
was $7,266,000 and $5,035,000, respectively, and for the nine-month periods
was $18,621,000 in 1996 and $14,120,000 in 1995. Trust fees decreased 1.33%,
service charges on deposit accounts decreased 2.76% and other mortgage
servicing fees, commission income and other income increased 80.41% over the
same period in 1995. The significant increases in the last category were
attributed primarily to increases in mortgage servicing, salable loan fees,
equipment rental and securitization income. Investment Securities and other
gains for the nine-month period ended September 30, 1996, were $127,000
compared to losses of $160,000 in 1995. The net gains in 1996 and the net
losses in 1995 were primarily due to adjustments made to the carrying value of
certain partnership investments.
OTHER EXPENSE
Other expense for the three-month period ended September 30, 1996, was
$15,814,000, an increase of 18.22% over the same period in 1995 and was
$44,333,000 for the nine-month period ended September 30, 1996, an increase of
8.38% over 1995. For the nine-month period ended September 30, 1996, salaries
and employee benefits increased 8.55%, net occupancy expense increased 29.81%,
insurance expense decreased 78.46%, business development and marketing expense
increased 13.45%, and miscellaneous other expenses increased 28.41% over the
same period in 1995. The increase in net occupancy expense is due to the loss
of a major tenant in our corporate headquarters building. The decrease in
insurance expense reflects an FDIC assessment factor of 0% for 1996. Business
development and marketing expense has increased due to new branches being
opened in 1996. The increase in miscellaneous expense is due to depreciation
of leased equipment.
-10-
INCOME TAXES
The provision for income taxes for the three-month and nine-month periods
ended September 30, 1996, was $3,258,000 and $9,169,000, respectively, compared
to $2,929,000 and $8,002,00 for the comparable periods in 1995. The provision
for income taxes for the nine months ended September 30, 1996, and 1995, is at
a rate which management believes approximates the effective rate for the year.
The increase was due to increased taxable income in 1996.
CAPITAL RESOURCES
The banking regulators have established guidelines for leverage capital
requirements, expressed in terms of Tier 1 or core capital as a percentage of
average assets, to measure the soundness of a financial institution. These
guidelines require all banks to maintain a minimum leverage capital ratio of
4.00% for adequately capitalized banks and 5.00% for well-capitalized banks.
1st Source's leverage capital ratio was 8.75% at September 30, 1996.
The Federal Reserve Board has also approved final risk-based capital
guidelines for U.S. banking organiza-tions. The guidelines established a
conceptual framework calling for risk weights to be assigned to on and off-
balance sheet items in arriving at risk-adjusted total assets, with the
resulting ratio compared to a minimum standard to determine whether a bank has
adequate capital. The minimum standard risk-based capital ratios effective in
1996 are 4.00% for adequately capitalized banks and 6.00% for well-capitalized
banks for Tier 1 risk-based capital and 8.00% and 10.00%, respectively, for
total risk-based capital. 1st Source's Tier 1 risk-based capital ratio on
September 30, 1996, was 11.08% and the total risk-based capital ratio was
12.60%.
LIQUIDITY AND INTEREST RATE SENSITIVITY
Asset and liability management includes the management of interest rate
sensitivity and the maintenance of an adequate liquidity position. The
purpose of liquidity management is to match the sources and uses of funds to
anticipated customers' deposits and withdrawals, to anticipate borrowing
requirements and to provide for cash flow needs of 1st Source. The purpose of
interest rate sensitivity management is to stabilize net interest income during
periods of changing interest rates.
Close attention is given to various interest sensitivity gaps and interest
spreads. Maturities of rate sensitive assets are carefully maintained relative
to the maturities of rate sensitive liabilities and interest rate forecasts.
At September 30, 1996, the consolidated statement of financial condition was
rate sensitive by $92,172,000 more liabilities than assets scheduled to reprice
within one year or 91.12%.
Management adjusts the composition of its assets and liabilities to manage
the interest rate sensitivity gap based upon its expectations of interest rate
fluctuations.
-11-
PART II. OTHER INFORMATION
ITEM 1. Legal Proceedings.
None
ITEM 2. Changes in Securities.
None
ITEM 3. Defaults Upon Senior Securities.
None
ITEM 4. None
ITEM 5. Other Information.
None
ITEM 6. Exhibits and Reports on Form 8-K.
None
-12-
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.
1st Source Corporation
___________________
DATE November 14, 1996 Christopher J. Murhpy III /s/
(Signature)
Christopher J. Murphy III, President
DATE November 14, 1996 Larry E. Lentych /s/
(Signature)
Larry E. Lentych, Treasurer (Chief
Accounting and Financial Officer)
-13-
<TABLE> <S> <C>
<ARTICLE> 9
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> SEP-30-1996
<CASH> 98911
<INT-BEARING-DEPOSITS> 6046
<FED-FUNDS-SOLD> 0
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 281309
<INVESTMENTS-CARRYING> 122198
<INVESTMENTS-MARKET> 126426
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<ALLOWANCE> 29540
<TOTAL-ASSETS> 1976884
<DEPOSITS> 1548244
<SHORT-TERM> 207668
<LIABILITIES-OTHER> 35302
<LONG-TERM> 19613
<COMMON> 5700
0
0
<OTHER-SE> 160357
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<INCOME-PRETAX> 26339
<INCOME-PRE-EXTRAORDINARY> 17170
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 17170
<EPS-PRIMARY> 1.34
<EPS-DILUTED> 1.34
<YIELD-ACTUAL> 4.50
<LOANS-NON> 6078
<LOANS-PAST> 420
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<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 27470
<CHARGE-OFFS> 2775
<RECOVERIES> 1012
<ALLOWANCE-CLOSE> 29540
<ALLOWANCE-DOMESTIC> 10303
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 19237
</TABLE>
