U.S. SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
Form 10 - QSB
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For quarterly period ended March 31,1999
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from --------- to ---------
Commission File No. 0-11184
NORTH EAST INSURANCE COMPANY
(Name of small business issuer as specified in its charter)
Maine 01-0278387
(State or other jurisdiction of (I.R.S employer
incorporation or organization) identification number)
482 Payne Road, Scarborough, Maine 04074
( Address of principal executive offices )
(207) 883-2232
(Issuer's telephone number)
Check whether the issuer (1) filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act during the past 12 months (or for
such shorter period that the issuer was required to file such reports), and
(2) has been subject to such filing requirements for the past 90 days.
Yes [X] No [ ]
As of May 7, 1999 there were 3,049,089 outstanding shares of Common Stock,
$1.00 par value, the only authorized class of the issuer.
Transitional Small Business Disclosure Format: Yes [ ] No [X]
NORTH EAST INSURANCE COMPANY
AND SUBSIDIARIES
INDEX
-----
Part I. - Financial Information
Item 1 - Financial Statements
Consolidated Balance Sheet
As of March 31,1999 3
Consolidated Statements of Operations and
Comprehensive Income for the
Three Months Ended March 31,1999 and 1998 4
Consolidated Statements of Cash Flows for the
Three Months Ended March 31,1999 and 1998 5
Notes to Consolidated Financial Statements 7
Management's Discussion and Analysis of
the Financial Condition and Results of Operations 9
Part II - Other Information
Item 5 - Other Information 13
Item 6 - Exhibits and Reports on Form 8-K 15
Item 1. FINANCIAL INFORMATION
- -----------------------------
North East Insurance Company and Subsidiaries
Consolidated Balance Sheet
As of March 31, 1999
<TABLE>
<CAPTION>
1999
----
<S> <C>
ASSETS
Investments:
Fixed maturities available for sale, at
fair value (amortized cost $13,841,644) $14,142,430
Equity securities available for sale,
at fair value (cost $616,374) 626,667
Short-term investments 1,965,480
-----------
Total investments 16,734,577
Reinsurance (loss and loss adjustment expense
reserves and paid recoverables) 2,709,001
Premium balances receivable 6,363,691
Reinsurance balances receivable 1,593,392
Deferred policy acquisition costs 1,892,979
Cash 280,952
Prepaid reinsurance premiums (ceded unearned premium) 775,581
Investment income due and accrued 235,792
Property and equipment, net of accumulated depreciation 242,758
Deferred tax asset 1,949,150
Prepaid federal income tax 9,242
Other assets 104,832
-----------
Total Assets $32,891,947
===========
LIABILITIES
Losses and loss adjustment expenses $12,650,123
Unearned premiums 8,527,875
Reinsurance balances payable 893,549
Reserve for unpaid expenses 644,451
Book overdraft 372,654
Other liabilities 82,984
----------
Total Liabilities 23,171,636
SHAREHOLDERS' EQUITY
Common stock $1.00 par value, authorized
12,000,000 shares, issued 3,049,089
and outstanding shares 3,049,089
Additional paid-in capital 6,407,132
Accumulated other comprehensive income 205,312
Accumulated retained earnings 58,778
------------
Total Shareholders' Equity 9,720,311
------------
Total Liabilities and Shareholders' Equity $32,891,947
============
</TABLE>
The accompanying notes are an integral part of the consolidated financial
statements.
North East Insurance Company and Subsidiaries
Consolidated Statements of Operations and Comprehensive Income (Loss)
for the Three Months ended March 31,
Consolidated Statements of Operations
-------------------------------------
<TABLE>
<CAPTION>
1999 1998
---- ----
<S> <C> <C>
Revenues:
Premiums earned $3,763,399 $3,021,357
Premiums ceded 673,792 482,400
--------------------------
Net premiums earned 3,089,607 2,538,957
Net investment income 185,039 223,763
Realized capital gains 3,304 33,192
--------------------------
Total revenues 3,277,950 2,795,912
Expenses:
Losses and loss adjustment expenses 2,614,489 2,644,689
Reinsurance recoveries (51,520) (166,513)
--------------------------
Net losses and loss adjustment expenses 2,562,969 2,478,176
Underwriting expenses incurred 1,434,279 1,078,492
--------------------------
Total expenses 3,997,248 3,556,668
--------------------------
Income (loss) before provision for
income taxes (719,298) (760,756)
Provision (credit) for income taxes (245,685) (269,942)
--------------------------
Net income (loss) $ (473,613) $ (490,814)
==========================
Net income (loss) per common share:
Basic $ (0.16) $ (0.16)
==========================
Diluted $ (0.15) $ (0.16)
==========================
</TABLE>
Consolidated Statements of Comprehensive Income (Loss)
<TABLE>
<CAPTION>
1999 1998
---- ----
<S> <C> <C>
Net income (loss) $(473,613) $(490,814)
Other comprehensive income (loss),
net of income tax:
Change in unrealized appreciation
(depreciation) of securities (tax credit
1999 - $32,425; 1998 - $877) (59,639) 31,490
Reclassification adjustment for gains
included in net income (tax expense
(credit) 1999 - $ 0; 1998 - $ 0) (3,304) (33,192)
-------------------------
Comprehensive income (loss) $(536,556) $(492,516)
=========================
</TABLE>
The accompanying notes are an integral part of the consolidated financial
statements.
North East Insurance Company And Subsidiaries
Consolidated Statements of Cash Flows
for the Three Months ended March 31,
<TABLE>
<CAPTION>
1999 1998
---- ----
<S> <C> <C>
Cash flow from operating activities:
Insurance premium received $3,474,978 $3,472,758
Loss and loss adjustment expenses paid (2,866,964) (1,396,176)
Operating expenses paid (1,640,340) (1,122,195)
Investment income received 199,669 213,416
--------------------------
Net cash provided by
(used) in operating activities (832,657) 1,167,803
--------------------------
Cash flows from investing activities:
Fixed maturities available for sale, sold 2,382,898 2,065,995
Fixed maturities available for sale,
purchased (984,100) (1,997,344)
Equity securities available for sale,
purchased (114,746) (41,485)
Purchase of furniture, fixtures and
equipment (22,571) (2,755)
--------------------------
Net cash provided by investing
activities 1,261,481 24,411
--------------------------
Cash flows from financing activities:
Increase (decrease) in book overdraft (20,081) 314,437
--------------------------
Net cash provided by
(used) in financing activities (20,081) 314,437
--------------------------
Net increase in cash, and short-term
investments 408,743 1,506,651
Cash and short-term investments at
beginning of year 1,837,689 3,772,738
--------------------------
Cash and short-term
investments at end of period $2,246,432 $5,279,389
==========================
</TABLE>
The accompanying notes are an integral part of the consolidated financial
statements.
North East Insurance Company And Subsidiaries
Consolidated Reconciliation of Cash Used In
Operating Activities to Net Income (Loss)
for the Three Months ended March 31,
<TABLE>
<CAPTION>
1999 1998
--------------------------
<S> <C> <C>
Net income (loss) $(473,613) $ (490,814)
Decrease in net premium and ceded
reinsurance balances 237,437 535,646
Increase in unearned premium reserve 147,934 398,155
Increase (decrease) in net loss and loss
adjustment expense reserve (303,995) 1,082,000
Decrease (increase) in investment income
due and accrued 14,630 (10,347)
Increase in deferred tax asset (245,685) (269,942)
Increase in deferred policy
acquisition costs (36,749) (69,332)
Decrease in expense accruals (219,325) (36,795)
Amortization of bond premium, net 20,218 15,069
Depreciation and amortization expense 29,795 48,031
Gain on investment activities (3,304) (33,868)
--------------------------
Net cash provided by
(used) in operating activities $(832,657) $1,167,803
==========================
</TABLE>
The accompanying notes are an integral part of the consolidated financial
statements.
North East Insurance Company and Subsidiaries
Notes to Consolidated Financial Statements
March 31, 1999
1. Basis of Presentation
---------------------
The condensed financial statements included herein have been prepared by
the Registrant, without audit, pursuant to the rules and regulations of the
Securities and Exchange Commission. Certain information and footnote
disclosure normally included in financial statements prepared in accordance
with generally accepted accounting principles have been condensed or
omitted pursuant to such rules and regulations, although the Registrant
believes that the disclosures which are made are adequate to make the
information presented not misleading, particularly when read in conjunction
with the financial statements and the notes thereto included in the
Registrant's latest annual report on Form 10-KSB. In Management's opinion,
the attached interim financial statements reflect all adjustments which are
necessary for a fair statement of the results for the periods presented.
2. Accounting Pronouncements Adopted
---------------------------------
On January 1, 1999, the Company adopted Statement of Position ("SOP") 97-3,
" Accounting by Insurance and Other Enterprises for Insurance-Related
Assessments" which provides guidance on accounting for insurance-related
assessments. The adoption of SOP 97-3 did not have a material impact on North
East's results of operation, liquidity or financial position.
On January 1, 1999, the Company adopted SOP 98-7, "Deposit Accounting:
Accounting for Insurance and Reinsurance Contracts That Do Not Transfer
Insurance Risk", which provides guidance on applying the deposit method of
accounting to insurance and reinsurance contracts that do not transfer
insurance risk. The adoption of SOP 98-7 did not have a material impact on
North East's results of operation, liquidity or financial position.
3. Earnings per Share
------------------
Earnings per share are computed in accordance with the provisions of FAS
No. 128 "Earnings Per Share" ("EPS") which requires the dual presentation
of basic and diluted earnings per share. Basic EPS is computed by dividing
net income available to common stockholders by the weighted average number
of common shares outstanding. The weighted average number of shares
outstanding used to calculate basic EPS was 3,049,089 and 3,046,842 in 1999
and 1998, respectively. The weighted average number of shares outstanding
used to calculate diluted EPS was 3,146,011 and 3,134,211 in 1999 and 1998,
respectively. Diluted EPS is computed by dividing net income available to
common stockholders by the weighted average number of common shares
outstanding while giving effect to all dilutive potential common shares
outstanding. The difference between basic and diluted shares used to
calculate EPS is the dilutive effect of stock options. Net income used to
calculate basic and diluted EPS was identical.
4. Reinsurance
-----------
During the first quarter of 1999, the Company endorsed the aggregate
coverage provided under its first layer excess of loss treaty for the 1999
calendar. The revision encompased premium rate, coverage period and
attachment point for the experience rated premium adjustment. Effective for
the coverage period January1, 1999 to March 31, 1999, the Company incurred
$312,500 in reinsurance premium cost for coverage in the event that the
Company's ratio of net losses and allocated loss adjustment expenses
incurred to net premiums earned, before giving effect to this reinsurance
arrangement, exceeded 75%. This contract did not meet the requirements of
Statement of Financial Accounting Standards No. 113, "Accounting and
Reporting for Reinsurance of Short-Duration and Long-Duration Contracts",
and is being accounted for following the guidance of SOP 98-7. At March 31,
1999, the Company's deposit liability recorded in its Consolidated Balance
Sheet was $ 62,500.
5. Litigation
----------
A former executive (Mr. Koren) has asserted employment-related claims against
the Company under an Employment Continuity Agreement and for alleged
discrimination on the basis of age, religion, and disability. The Employment
Continuity claim is for special severance compensation of approximately
$170,000 plus continuation of certain benefits; no amount of damages has been
specified on the discrimination claims. The Company has denied liability,
and management has stated an intention to defend vigorously against any claims
that Mr. Koren may bring.
6. Merger Agreement
----------------
The Company has entered into an Agreement and Plan of Merger, dated as of
March 16, 1999, with Motor Club of America. The agreement provides for a
merger by which NEIC would become a wholly-owned subsidiary of Motor Club.
Consummation of the merger is subject to various conditions, including
approval of the transaction by shareholders of both NEIC and Motor Club and
receipt of insurance regulatory approvals in Maine and New York. In its
Maine regulatory filing, Motor Club has stated an intention to contribute at
least $2 million of additional capital to NEIC upon consummation of the merger.
North East Insurance Company and Subsidiaries
Item 2 - Management's Discussion and Analysis of Financial Condition
and Results of Operations
Three Months Ended March 31, 1999
- ---------------------------------
Gross (direct plus assumed) premiums earned for the three months ended
March 31,1999 amounted to $3,763,399 representing a growth of 24.6% over
the $3,021,357 recorded in the first three months of 1998. This increase
reflects substantial increased premium volume in the third and fourth
quarters of 1998 from our new personal automobile insurance program
("AutoMatic"), introduced late in the second quarter of 1998. Net premiums
written amounted to $3,237,541 for the three months ended March 31, 1999
compared with $2,937,112 for the three months ended March 31, 1998.
During the first quarter of 1999, the Company endorsed the aggregate coverage
provided under its first layer excess of loss treaty for the 1999 calendar.
The revision encompassed premium rate, coverage period and attachment point
for the experience rated premium adjustment. Effective for the coverage
period January 1, 1999 to March 31, 1999, the Company incurred $312,500 in
reinsurance premiums for coverage in the event that the Company's ratio of
net losses and allocated loss adjustment expenses incurred to net premiums
earned, before giving effect to this reinsurance arrangement, exceeded 75%.
This contract did not meet the requirements of Statement of Financial
Accounting Standards No. 113, "Accounting and Reporting for Reinsurance of
Short-Duration and Long-Duration Contracts", and is being accounted for
following the guidance of SOP 98-7. At March 31, 1999, the Company's
deposit liability recorded in its Consolidated Balance Sheet was $62,500.
Net premiums earned for the three months ended March 31, 1999 and 1998
amounted to $3,089,607 and $2,538,957, respectively, an increase of 21.6%,
due principally to AutoMatic.
Loss and loss adjustment expense represented 82.9% and 97.6% of net earned
premium for the three months ended March 31, 1999 and 1998, respectively.
Typically the loss and loss adjustment expense ratios in the first quarter
are significantly higher than the second and third quarters; the fourth
quarter normally exhibits a ratio higher than the second and third quarters
but lower than the first quarter. The higher than normal loss and loss
adjustment expense ratio experienced in 1998 was attributable to the ice
storm which paralyzed much of southern Maine for more than 10 days and
several lessor publicized snowstorms.
Underwriting expenses incurred represented 44.3% and 36.7% of net premiums
written for the three months ended March 31, 1999 and 1998, respectively.
Expenses for the first quarter of 1999 include one time expenses associated
with the proposed pending merger of approximately $100,000 or three
percentage points when expressed as a percent of net written premium.
Gross investment income amounted to $230,224 for the three months ended
March 31, 1999 compared with $273,763 for the three months ended March 31,
1998. The return on fixed maturities, based on amortized cost, before
expenses was 6.7% for both three month periods ended March 31, 1999 and
1998. The lower return in 1999 reflects a lower level of total invested
assets and a decline in short term money rates for the periods under
comparison.
Net loss for the three months ended March 31, 1999 amounted to $473,613 or
$0.16 per share compared with a net loss of $490,814 or $0.16 per share for
the three months ended March 31, 1998.
Shareholders' equity at March 31, 1999 amounted to $9,720,311 or $3.19 per
share compared with $10,256,867 or $3.36 per share at December 31, 1998.
Liquidity and Capital Resources
- -------------------------------
Cash used by operating activities amounted to $832,657 for the three months
ended March 31, 1999 compared with cash provided by operating activities of
$1,167,803 for the three months ended March 31, 1998. Cash flow for the
first quarter of 1998 included receipt of approximately $2,450,000 due the
Company under its reinsurance treaties. Cash provided by investing
activities amounted to $1,261,481 and $24,411 for the three months ended
March 31, 1999 and 1998, respectively.
The fair value of the Company's fixed maturities available for sale was
$300,786 more than the amortized cost at March 31,1999 compared with
$425,187 more than amortized cost at December 31,1998. During the first
quarter of 1999 and 1998 the Company used $114,746 and $41,485,
respectively for the purchase of equity securities.
The Company maintains short-term investments to provide a cash resource
should the demands from operations exceed incoming cash flow. Short-term
investments amounted to $1,965,480 at March 31, 1999 compared with
$1,526,752 at December 31, 1998. The Company believes that this level is
sufficient to meet any unanticipated cash demands.
YEAR 2000 ISSUES
North East has substantially completed its review of internal systems
and believes such systems to be Y2K compliant. NEIC is still in the process
of contacting its independent agents and key vendors to ascertain their
status relative to Y2K issues; the Company expects to have completed this
process by July 1, 1999.
The Company does not yet have a contingency plan for Y2K-related disruptions
in its systems. It expects to complete such a plan by the fourth quarter of
1999.
The Company estimates that the cost of upgrading its information processing
systems (over and above normal systems maintenance costs) did not exceed
$1,000,000 from 1995 through the date of substantial completion of the
upgrade. This upgrade was motivated primarily by factors other than Y2K
compliance. The Company estimates its additional expenditures for Y2K
compliance will not exceed $100,000.
No assurance can be given that the Company will be fully Y2K compliant by
the dates required. However, based on current information, the Company
believes that the effects of any noncompliance will not be material to the
overall operations of the Company.
Forward-Looking Information
- ---------------------------
From time to time, NEIC publishes information that includes forward-looking
statements, as defined in Section 21E of the Securities Exchange Act of
1934. This "Management's Discussion and Analysis" section of this Form 10-
QSB contains forward-looking statements, such as estimates of future
revenue growth and estimates of costs and implementation dates associated
with Y2K compliance efforts.
The Company cautions readers that numerous factors beyond NEIC's control
could cause projected revenue growth to differ materially from the levels
reflected in these forward-looking statements, including changes in the
changes in the pricing of competing policies, consolidation among insurance
agents, and changes in consumer preferences. Factors that could cause Y2K-
related costs to exceed expectations include the failure of agents and
outside vendors to cooperate with NEIC compliance efforts and unanticipated
problems with systems believed to be Y2K compliant.
North East Insurance Company and Subsidiaries
Part II: OTHER INFORMATION
- --------------------------
Item 1. Legal Proceedings
By letter from his counsel dated March 17, 1999, an executive officer
(Samuel M. Koren) gave notice of termination of his employment, asserting a
claim against NEIC for approximately $170,000 of special severance
compensation under an Employment Continuity Agreement, plus continuation of
certain benefits. Mr. Koren later stated an intention to file claims for
unlawful discrimination against him on the basis of age, religion, and
disability; he has not specified an amount of damages as to these
discrimination claims. The Company has denied liability on all asserted
claims. To date no litigation or arbitration has been commenced. Under an
Agreement and Plan of Merger dated as of March 16, 1999 between NEIC and
Motor Club of America, the Company generally may not settle claims in
excess of $40,000 or pay additional severance compensation without the
consent of Motor Club. Management of NEIC has stated an intention to
defend vigorously against any claims that Mr. Koren may bring.
Item 4. Submission of Matters to a Vote of Security Holders
Item 5. Other Information
As previously reported, NEIC executed an Agreement and Plan of Merger,
dated as of March 16, 1999, with Motor Club of America. Motor Club is an
insurance holding company located in Paramus, New Jersey. Motor Club's
common stock is publicly traded on the NASDAQ Stock Market, under the
symbol "MOTR". The agreement provides for a merger by which NEIC would
become a wholly-owned subsidiary of Motor Club. For each share of NEIC
stock, a NEIC shareholder may elect to receive (a) $3.30 in cash, (b)
0.19048 shares of Motor Club stock, or (c) a combination of cash and stock.
If the NEIC shareholders in the aggregate elect to exchange more than 50%
of their shares for MOTR stock, the elections will be ratably reduced to
50%. Consummation of the merger is subject to various conditions,
including receipt of shareholder approval and insurance regulatory
approvals.
As previously reported, NEIC executed an Agreement and Plan of Merger,
dated as of March 16, 1999, with Motor Club of America. Motor Club is an
insurance holding company located in Paramus, New Jersey. Motor Club's
common stock is publicly traded on the NASDAQ Stock Market, under the
symbol "MOTR". The agreement provides for a merger by which NEIC would
become a wholly-owned subsidiary of Motor Club. For each share of NEIC
stock, a NEIC shareholder may elect to receive (a) $3.30 in cash, (b)
0.19048 shares of Motor Club stock, or (c) a combination of cash and stock.
If the NEIC shareholders in the aggregate elect to exchange more than 50%
of their shares for MOTR stock, the elections will be ratably reduced to
50%. Consummation of the merger is subject to various conditions,
including receipt of shareholder approval and insurance regulatory
approvals.
In a letter dated April 23, 1999, the Maine Bureau of Insurance notified
NEIC that its total investments in subsidiaries and common stocks as of
December 31, 1998 exceeded a statutory diversification threshold. Under
Section 1106(2) of the Maine Insurance Code, an insurer "may not invest in
aggregate amount in excess of surplus as to policyholders in [specified
investments, including subsidiaries and common stocks]." The Bureau also
expressed concern over the Company's year-end Risk Based Capital ratio of
271%, which is approaching a regulatory threshold that would require the
filing of a plan to address capital issues. In its response dated April
30, 1999, management stated that NEIC's investment activities during 1998
complied with applicable diversification requirements. The Company listed
three steps that it was taking to address capital issues in 1999: (1)
Motor Club of America has stated its intention to invest at least $2
million of new capital in NEIC upon consummation of the contemplated merger
transaction; (2) NEIC expects to receive an intercompany dividend in 1999
from its principal subsidiary (American Colonial Insurance Company) of just
under $0.5 million, pending approval from the New York Insurance
Department; and (3) the Company has suspended further purchases of common
stock for its investment portfolio. Management expects that statutory
limits on investment policies will not materially affect the Company.
Item 6. Exhibits and Reports on Form 8 - K
a) Exhibits
27 Financial Data Schedules
b) Reports on Form 8-K
The Company filed a Form 8-K report on January 27, 1999, regarding a
non-binding agreement in principle for Motor Club of America to acquire NEIC
through a merger. The Company filed a Form 8-K report on March 19, 1999,
regarding execution of an Agreement and Plan of Merger dated as of
March 16, 1999 with Motor Club.
North East Insurance Company and Subsidiaries
Form 10-QSB
Exhibit Index
Exhibit
Number Description Page
- -------------------------------------------------
27 Financial Data Schedules 17
North East Insurance Company and Subsidiaries
SIGNATURES
In accordance with the requirements of the Exchange Act, the Registrant
caused this report to be signed on its behalf by the undersigned, thereunto
duly authorized.
North East Insurance Company
Date: May 14, 1999 By /S/Robert G. Schatz
Robert G. Schatz
President and Chief Executive Officer
Date: May 14, 1999 By /S/Graham S. Payne
Graham S. Payne
Treasurer and Chief Financial Officer
<TABLE> <S> <C>
<ARTICLE> 7
<CIK> 0000352162
<NAME> NORTHEAST INSURANCE COMPANY
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-START> JAN-01-1999
<PERIOD-END> MAR-31-1999
<DEBT-HELD-FOR-SALE> 14,142,430
<DEBT-CARRYING-VALUE> 0
<DEBT-MARKET-VALUE> 0
<EQUITIES> 626,667
<MORTGAGE> 0
<REAL-ESTATE> 0
<TOTAL-INVEST> 14,769,097
<CASH> 1,965,480
<RECOVER-REINSURE> 2,709,001
<DEFERRED-ACQUISITION> 1,892,979
<TOTAL-ASSETS> 32,891,947
<POLICY-LOSSES> 12,650,123
<UNEARNED-PREMIUMS> 8,527,875
<POLICY-OTHER> 0
<POLICY-HOLDER-FUNDS> 0
<NOTES-PAYABLE> 0
0
0
<COMMON> 3,049,089
<OTHER-SE> 6,671,222
<TOTAL-LIABILITY-AND-EQUITY> 32,891,947
3,089,607
<INVESTMENT-INCOME> 185,039
<INVESTMENT-GAINS> 3,304
<OTHER-INCOME> 0
<BENEFITS> 2,562,969
<UNDERWRITING-AMORTIZATION> 1,434,279
<UNDERWRITING-OTHER> 0
<INCOME-PRETAX> (719,298)
<INCOME-TAX> (245,685)
<INCOME-CONTINUING> (473,613)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (473,613)
<EPS-PRIMARY> (0.16)
<EPS-DILUTED> (0.15)
<RESERVE-OPEN> 0
<PROVISION-CURRENT> 0
<PROVISION-PRIOR> 0
<PAYMENTS-CURRENT> 0
<PAYMENTS-PRIOR> 0
<RESERVE-CLOSE> 0
<CUMULATIVE-DEFICIENCY> 0
</TABLE>
