U.S. 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 Quarterly Period Ended September 30, 1998
Commission File Number 00-22246
COMMERCIAL BANKSHARES, INC.
(Exact name of Registrant as specified in its charter)
FLORIDA 65-0050176
(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification No.)
1550 S.W. 57th Avenue, Miami, Florida 33144
(Address of principal executive offices) (Zip Code)
(305) 267-1200
(Registrant's Telephone Number, including area
code)
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 .
CLASS OUTSTANDING AT November 13, 1998
COMMON STOCK, $.08 PAR VALUE 3,528,771 SHARES
T A B L E O F C O N T E N T S
PART I Item 1. Financial Statements 1
Item 2. Management's Discussion and Analysis
of Financial Condition and Results of
Operations 7
PART II Item 6. Exhibits and Reports on Form 8-K 9
<PAGE>
PART I - FINANCIAL INFORMATION
ITEM 1 - FINANCIAL STATEMENTS
<TABLE>
COMMERCIAL BANKSHARES, INC. AND SUBSIDIARY
CONDENSED CONSOLIDATED BALANCE SHEETS
September 30, 1998, and December 31, 1997
(Dollars in thousands except share data)
(Unaudited)
<CAPTION>
September 30, December 31,
<S> <C> <C>
1998 1997
Assets:
Cash and due from banks $ 14,366 $ 17,222
Federal funds sold 8,399 10,339
Total cash and cash equivalents 22,765 27,561
Investment securities available for sale, at
fair value (cost of $108,130 in 1998
and $91,381 in 1997) 112,343 95,054
Investment securities held to maturity
(aggregate fair value of $70,695
in 1998 and $85,174 in 1997) 68,853 83,012
Loans, net 189,070 170,401
Premises and equipment, net 14,075 13,230
Accrued interest receivable 3,875 2,755
Goodwill, net 837 972
Other assets 3,911 3,214
Total assets $415,729 $396,199
Liabilities and stockholders' equity:
Deposits:
Demand $ 70,912 $ 65,646
Savings 22,003 21,416
Interest-bearing checking 49,942 52,303
Money market accounts 41,805 44,014
Time 149,840 136,465
Total deposits 334,502 319,844
Securities sold under agreements to repurchase 32,234 31,285
Accounts payable and accrued liabilities 3,184 2,493
Accrued interest payable 598 648
Total liabilities 370,518 354,270
Stockholders' equity:
Common stock, $.08 par value, 6,250,000
authorized shares, 3,528,771 issued and
outstanding (3,523,095 in 1997) 282 282
Additional paid-in capital 35,214 35,013
Retained earnings 6,696 4,148
Accumulated other comprehensive income 3,163 2,553
Treasury stock, 9,612 shares, at cost in 1998, (144) (67)
and 5,512 shares in 1997
Total stockholders' equity 45,211 41,929
Total liabilities and stockholders' equity $415,729 $396,199
</TABLE>
<TABLE>
COMMERCIAL BANKSHARES, INC. AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
For the three months ended September 30, 1998 and 1997
(Dollars in thousands except per share data)
(Unaudited)
<CAPTION>
1998 1997
<S> <C> <C>
Interest income:
Interest and fees on loans $4,162 $3,422
Interest on investment securities 2,787 2,823
Interest on federal funds sold 219 119
Total interest income 7,168 6,364
Interest expense:
Interest on deposits 2,571 2,146
Interest on securities sold under
agreements to repurchase 421 389
Total interest expense 2,992 2,535
Net interest income 4,176 3,829
Provision for loan losses 95 10
Net interest income after provision
for loan losses 4,081 3,819
Non-interest income:
Service charges on deposit accounts 488 507
Other fees and service charges 129 104
Gain on sales of premises and equipment - 1
Gain on sales of investment securities 67 88
Total non-interest income 684 700
Non-interest expense:
Salaries and employee benefits 1,747 1,618
Occupancy expense 323 317
Furniture and equipment expense 231 225
Data Processing 202 181
Professional fees 32 90
Stationery and supplies 67 45
Insurance 45 42
Other 404 379
Total non-interest expense 3,051 2,897
Income before income taxes 1,714 1,622
Provision for income taxes 502 491
Net income $1,212 $1,131
Earnings per common and common equivalent share
Basic $.34 $.32
Diluted $.33 $.31
Weighted average number of shares and common
equivalent shares:
Basic 3,533,220 3,517,583
Diluted 3,643,407 3,609,577
</TABLE>
<TABLE>
COMMERCIAL BANKSHARES, INC. AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
For the nine months ended September 30, 1998 and 1997
(Dollars in thousands except per share data)
(Unaudited)
<CAPTION>
1998 1997
<S> <C> <C>
Interest income:
Interest and fees on loans $11,974 $9,661
Interest on investment securities 8,523 8,810
Interest on federal funds sold 522 380
Total interest income 21,019 18,851
Interest expense:
Interest on deposits 7,394 6,351
Interest on securities sold under
agreements to repurchase 1,220 1,108
Total interest expense 8,614 7,459
Net interest income 12,405 11,392
Provision for loan losses 160 140
Net interest income after provision
for loan losses 12,245 11,252
Non-interest income:
Service charges on deposit accounts 1,449 1,471
Other fees and service charges 373 301
Gain on sales of premises and equipment - 106
Gain on sales of investment securities 68 88
Total non-interest income 1,890 1,966
Non-interest expense:
Salaries and employee benefits 5,161 4,764
Occupancy 902 894
Furniture and equipment 696 662
Data processing 585 543
Professional 132 215
Stationery and supplies 191 169
Insurance 140 142
Other 1,140 1,070
Total non-interest expense 8,947 8,459
Income before income taxes 5,188 4,759
Provision for income taxes 1,546 1,431
Net income $3,642 $3,328
Earnings per common and common equivalent share:
Basic $1.03 $.95
Diluted $1.00 $.93
Weighted average number of shares and common
equivalent shares:
Basic 3,527,917 3,516,762
Diluted 3,646,692 3,582,780
</TABLE>
<TABLE>
COMMERCIAL BANKSHARES, INC. AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
For the three months and nine months ended September 30, 1998
(In thousands)
(Unaudited)
<CAPTION>
Three Months Ended
September 30,
1998 1997
<S> <C> <C>
Net Income $1,212 $1,131
Unrealized holding gains arising
during the period 500 409
Comprehensive income $1,712 $1,540
Nine Months Ended
September 30,
1998 1997
Net Income $3,642 $3,328
Unrealized holding gains arising
during the period 610 579
Comprehensive income $4,252 $3,907
</TABLE>
<TABLE>
COMMERCIAL BANKSHARES, INC. AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
For the nine months ended September 30, 1998 and 1997
(In thousands) (Unaudited)
<CAPTION>
1998 1997
<S> <C> <C>
Cash flows from operating activities:
Net income (loss) $ 3,642 $3,328
Adjustments to reconcile net income
to net cash provided by operating activities:
Provision for loan losses 160 140
Depreciation, amortization, and accretion, net 934 713
Gain on sale of investment securities (68) (88)
Gain on sale of premises and equipment - (106)
Change in accrued interest receivable (1,528) (211)
Change in other assets (276) (167)
Change in net income tax liability (54) (134)
Change in accounts payable and accrued liabilities 407 326
Change in accrued interest payable (50) (96)
Net cash provided by operating activities 3,167 3,705
Cash flows from investing activities:
Proceeds from maturities of investment securities
held to maturity 19,752 15,161
Proceeds from maturities of investment securities
available for sale 55,482 5
Proceeds from sales of investment securities
held to maturity - 4,624
Proceeds from sales of investment securities
available for sale 4,111 27,000
Purchases of investment securities held to maturity - (726)
Purchases of investment secs available for sale (81,618) (20,952)
Net change in loans (18,862) (28,403)
Purchases of premises and equipment (1,514) (2,555)
Sales of premises and equipment 49 917
Net cash used in investing activities (22,600) (4,929)
Cash flows from financing activities:
Net change in demand, savings, interest-bearing
checking, money market, and time deposit accounts 14,658 1,184
Net change in securities sold under agreements
to repurchase 949 3,464
Dividends paid (1,094) (804)
Proceeds from issuance of stock 201 20
Purchase of treasury stock (77) -
Net cash provided by financing activities 14,637 1,496
Increase (decrease) in cash and cash equivalents (4,796) 272
Cash and cash equivalents at beginning of period 27,561 29,896
Cash and cash equivalents at end of period $ 22,765 $ 30,168
Supplemental disclosures:
Interest paid $1,417 $ 1,249
Income taxes paid $ 1,541 $ 1,565
</TABLE>
COMMERCIAL BANKSHARES, INC. AND SUBSIDIARY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
1. INTERIM FINANCIAL STATEMENTS
The accompanying unaudited condensed consolidated financial statements, which
are for interim periods, do not include all disclosures provided in the annual
consolidated financial statements. These financial statements and the footnotes
thereto should be read in conjunction with the annual consolidated financial
statements for the years ended December 31, 1997, 1996, and 1995, for
Commercial Bankshares, Inc. (the "Company").
All material intercompany balances and transactions have been eliminated.
In the opinion of management, the accompanying unaudited condensed consolidated
financial statements contain all adjustments necessary for a fair presentation
of the financial statements. Those adjustments are of a normal recurring
nature. The results of operations for the nine-month period ended September
30, 1998, are not necessarily indicative of the results to be expected for
the full year.
2. PER SHARE DATA
Earnings per share have been computed in accordance with Statement of Financial
Accounting Standard No. 128, "Earnings per Share" (SFAS 128) by dividing net
income by the weighted average number of common shares (basic earnings per
share) and by the weighted average number of common shares plus dilutive
common share equivalents outstanding (diluted earnings per share). Common
stock equivalents include the effect of all outstanding stock options, using
the treasury stock method. The weighted average numbers of shares and
equivalent shares for 1998 and 1997 include the effects of the one-for-twenty
(five per cent) stock dividends effective on January 2, 1998 and January 3,
1997.
The following table reconciles the weighted average shares (Denominator) used to
calculate basic and diluted earnings per share (in thousands, except per share
amounts):
<TABLE>
Three Months Ended Three Months Ended
September 30, 1998 September 30, 1997
<CAPTION>
Income Shares Per-Share Income Shares Per-Share
(Numerator) (Denominator) Amount (Numerator) (Denominator) Amount
<S> <C> <C> <C> <C> <C> <C>
Basic EPS $1,212 $3,533 $.34 $1,131 $3,518 $.32
Effect of Dilutive
Options - 110 (.01) - 92 (.01)
Diluted EPS $1,212 $3,643 .33 $1,131 $3,610 $.31
Nine Months Ended Nine Months Ended
September 30, 1998 September 30, 1997
Income Shares Per-Share Income Shares Per-Share
(Numerator) (Denominator) Amount (Numerator) (Denominator) Amount
Basic EPS $3,642 $3,528 $1.03 $3,328 $3,517 $.95
Effect of Dilutive
Options - 119 (.03) - 66 (.02)
Diluted EPS $3,642 $3,647 $1.00 $3,328 $3,583 $.93
</TABLE>
3. COMPREHENSIVE INCOME
As of January 1, 1998, the Company adopted Statement of Financial Accounting
Standards No. 130 (SFAS 130), "Reporting Comprehensive Income." SFAS 130
establishes new rules for the reporting and display of comprehensive income
and its components; however, the adoption of this Statement had no impact on
the Company's net income or stockholders' equity. SFAS 130 requires
unrealized gains or losses on the Company's available-for-sale securities,
which prior to adoption were reported separately in stockholders' equity, to
be included in other comprehensive income.
Total comprehensive income amounted to approximately $1.71 million and $1.54
million, respectively, for the third quarters of 1998 and 1997, and $4.25
million and $3.91 million, respectively, for the nine months ended September
30, 1998 and 1997.
4. NEW ACCOUNTING PRONOUNCEMENT
In October, 1998, the Financial Accounting Standards Board (FASB), issued
Statement of Financial Accounting Standards (SFAS) No. 134 Accounting for
Mortgage-Backed Securities Retained after the Securitization of Mortgage
Loans Held for Sale by a Mortgage Banking Enterprise. This statement amends
FASB Statement 65 Accounting for Certain Mortgage Banking Activities, to
require that after the securitization of mortgage loans held for sale, an
entity engaged in mortgage banking activities classify the resulting
mortgage-backed securities or other retained interests based on its ability
and intent to sell or hold those investments. SFAS No. 134 is effective for
the first fiscal quarter beginning after December 15, 1998. The impact
of this standard is not expected to be material in relation to the
consolidated financial statements.
In June, 1998, FASB issued SFAS No. 133, Accounting for Derivative Instruments
and Hedging Activities. SFAS No. 133 establishes accounting and reporting
standards for derivatives and hedging activities. It requires that all
derivatives be included as assets or liabilities in the balance sheet and
that such instruments be carried at fair market value through
adjustments to either other comprehensive income or current earnings or both, as
appropriate. SFAS No. 133 is effective for financial statements issued for all
fiscal quarters of fiscal years beginning after June 15, 1999. The impact of
this standard is not expected to be material in relation to the consolidated
Financial Statements.
Statement of Financial Accounting Standards No. 132, Employers Disclosures
about Pensions and Other Postretirement Benefits, does not change the
recognition or measurement associated with pension or postretirement plans.
It standardizes certain disclosures, requires additional information about
changes in the benefit obligations and about changes in the fair value of plan
assets to facilitate analysis, and eliminates certain disclosures that were
not deemed useful. This Standard is effective for financial statements
issued for periods beginning after December 15,1997.
In June, 1997, FASB issued SFAS 131, Disclosures about Segments of an
Enterprise and Related Information. SFAS No. 131 establishes standards and
disclosure requirements for the way companies report information about operating
segments both in annual and interim reports issued to stockholders. SFAS No.
131 is effective for financial statements issued for periods beginning after
December 15, 1997. The impact of this standard is not expected to be material
in relation to the consolidated financial statements.
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS
The Company's net income reported for the quarter ended September 30, 1998, was
approximately $1.21 million. Basic and diluted earnings per share were $.34 and
$.33 respectively, for the third quarter of 1998, as compared to $.32 and $.31
respectively, for the third quarter of 1997.
For the nine months ended September 30, 1998 the Company's net income was $3.64
million, a 9% increase over the nine months ended September 30, 1997, of $3.33
million. Basic and diluted earnings per share were $1.03 and $1.00
respectively, for the nine months ended September 30, 1998, as compared to
$.95 and $.93 respectively, for the nine months ended September 30, 1997.
The Company's third quarter 1998 net interest income increased by $347,000, or
9.1%, from the corresponding quarter in 1997. Net interest income for the nine
months ended September 30, 1998 also increased by $1,013,000, or 8.9%, from the
corresponding period in 1997. The increase in net interest income is
attributable to an increase in average earning assets of $47 million, or 14%,
for the quarter and $39.0 million, or 11%, for the nine months ended
September 30, 1998.
The annualized net interest margins for the quarter and nine months ended
September 30, 1998 were 4.51% and 4.63%, respectively. This compares to 4.71%
and 4.73%, respectively, for the quarter and nine months ended September 30,
1997. The decrease of 20 basis points for the quarter and 10 basis points
for nine months is the result of a declining interest rate environment
and a relatively flat yield curve during most of 1998. This type of interest
rate environment has had an unfavorable impact on the Company's interest rate
spread because the Company's rate sensitive assets reprice more quickly than
its rate sensitive liabilities. The net interest margin has been calculated
on a tax-equivalent basis, which includes an adjustment for interest on
tax-exempt securities.
Non-interest income for the third quarter of 1998 decreased by $16,000, or 2.3%,
and decreased by $76,000 or 3.9%, for the first nine months of 1998, from the
corresponding periods of 1997. The decrease for the quarter is primarily
due to a drop in the number of insufficient funds items processed. The
decrease for the nine months is due to the sale of property in May 1997 that
resulted in a gain of $95,000.
Salaries and employee benefits expense increased by $129,000, or 7.9%, for the
third quarter of 1998 and by $397,000, or 8.3%, for the first nine months of
1998, from the corresponding periods of 1997. The increase includes normal
payroll increases and the cost of increasing the Company's staff from 169 to
178 full-time equivalent employees from September 30, 1997, to
September 30, 1998, due to the opening of two new branches.
Company management continually reviews and evaluates the allowance for loan
losses. Based on the nature of the loan portfolio and prevailing economic
factors, the Company believes that the allowance for loan losses at September
30, 1998, was sufficient to absorb potential losses in the loan portfolio.
In evaluating the adequacy of the allowance for loan losses, management
considers the results of its methodology, along with other factors such as
the amount of non-performing loans and the economic conditions affecting the
Company's markets and customers.
The allowance for loan losses was approximately $2.38 million (or 1.24% of total
loans) at September 30, 1998, as compared with $2.25 million (or 1.42% of total
loans) at September 30, 1997. For the nine months ended September 30, 1998, the
allowance for loan losses was increased by the provision for loan losses of
$160,000, partially offset by approximately $28,000 in net charge-offs. For the
corresponding period of 1997, the allowance was increased by the provision for
loan losses of $140,000, as well as approximately $63,000 in net recoveries of
previous loss charge-offs. The Company had no non-accrual loans at September
30, 1998. The Company actively pursues collection of past due loans.
Approximately $119.7 million (or 62.5% of total loans) were secured by
non-residential real estate and $32.6 million (or 17.0% of total loans) were
secured by residential real estate as of September 30, 1998. Virtually all
loans are within the Company's markets in Miami-Dade and Broward counties.
LIQUIDITY AND CAPITAL RESOURCES
The source of the Company's liquidity is funds generated by the operations of
Commercial Bank of Florida ("Bank"), its wholly owned subsidiary. For banks,
liquidity represents the ability to meet loan commitments, withdrawals of
deposited funds, and operating expenses. Funds to meet these needs can be
obtained by converting liquid assets to cash or by attracting new deposits or
other sources of funding. Many factors affect a bank's ability to meet
liquidity needs. The Bank's principal sources of funds are deposits,
repurchase agreements, payments on loans, paydowns and maturities on
investment securities, and capital contributions by the Company.
The Company's liquidity at September 30, 1998, consisted of $22.8 million in
cash and cash equivalents and $112.3 million in available-for-sale investments,
for a total of $135.1 million, compared with a total of $122.6 million at
year-end 1997, an increase of approximately $12.5 million. The total of
deposits and securities sold under agreements to repurchase, $366.7 million
at September 30, 1998, increased by $15.6 million or 4.4% over the year-end
1997 level of $351.1 million. The funds provided by the changes in those
accounts were invested in securities or used to fund loans. Purchases of
securities categorized as "available for sale" exceeded sales and maturities in
the same category by $22.0 million since year-end, partially offset by
maturities of securities categorized as "held to maturity" which exceeded
purchases in the same category by $19.8 million since year-end. Gross loans
at September 30, 1998, of $191.4 million increased by $18.8 million, or 10.4%
over the year-end 1997 level.
In accordance with risk-based capital guidelines issued by the Federal Reserve
Board, the Company and the Bank are each required to maintain a minimum ratio
of total capital to weighted risk assets of 8%. Additionally, all bank
holding companies and member banks must maintain "core" or "Tier 1" capital
of at least 3% of total assets ("leverage ratio"). Member banks operating at
or near the 3% capital level are expected to have well diversified risks,
including no undue interest rate risk exposure, excellent control systems,
good earnings, high asset quality, high liquidity, and well managed on- and
off-balance sheet activities, and in general be considered strong banking
organizations with a composite 1 rating under the CAMEL rating system of
banks. For all but the most highly rated banks meeting the above conditions,
the minimum leverage ratio is to be 3% plus an additional 100 to 200
basis points. The Tier 1 Capital, Total Capital, and Leverage Ratios of the
Company were 16.80%, 18.31%, and 9.91%, respectively, as of September 30, 1998.
YEAR 2000 COMPLIANCE
Management's evaluation of Year 2000 issues is ongoing and involves continual
evaluation and monitoring. The Company has established a Year 2000 committee
and Board of Directors' Year 2000 committee to address the necessary
enhancements to computer, communication, and other systems which may be affected
by Year 2000 issues.
The Company has developed a Year 2000 plan which complies with the Federal
Reserve's Year 2000 Supervision Program and its published guidelines, which
include requirements regarding project plans, testing plans and contingency
plans. The Year 2000 plan has identified individual projects, assigned
a priority, and tracks the progress of each. Emphasis has been placed on
those projects considered to be critical to the functioning of the company,
or "mission critical". To date all mission critical projects are expected to
be Year 2000 compliant by December 31, 1998. A project is considered
compliant when the software/hardware has been verified to be Year 2000 compliant
by the vendor, and testing has been completed.
The Company has developed a contingency plan that identifies alternate systems
or other methods of processing in the event that the existing mission critical
systems are not able to operate in part, or in whole, after January 31, 1999.
The Company has identified costs of approximately $400,000 related to the Year
2000 issue, including hardware, software, installation and human resources.
Approximately $78,500 and $40,000 were utilized in the first nine months of
1998 and the year ended December 31, 1997, respectively.
The above reflects management's best estimates, which include numerous
assumptions of future events. The actual results could differ materially
from those shown due to these estimates, assumptions and forward looking
statements. Factors which may be beyond the Company's control include, but
are not limited to, vendor representations, third party modification plans,
technological advances and economic factors.
<PAGE>
PART II - OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
Exhibit 27. Financial Data Schedule.
(b) Reports on Form 8-K. No report on Form 8-K was filed during the quarter
ended September 30, 1998.
<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.
Commercial Bankshares, Inc.
(Registrant)
/s/ Barbara E. Reed
Senior Vice President &
Treasurer
Date: November 16, 1998
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 9
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> SEP-30-1998
<CASH> 14366
<INT-BEARING-DEPOSITS> 350
<FED-FUNDS-SOLD> 8399
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 112343
<INVESTMENTS-CARRYING> 68853
<INVESTMENTS-MARKET> 70345
<LOANS> 191449
<ALLOWANCE> 2379
<TOTAL-ASSETS> 415729
<DEPOSITS> 334502
<SHORT-TERM> 32234
<LIABILITIES-OTHER> 3782
<LONG-TERM> 0
0
0
<COMMON> 282
<OTHER-SE> 44929
<TOTAL-LIABILITIES-AND-EQUITY> 415729
<INTEREST-LOAN> 11974
<INTEREST-INVEST> 8523
<INTEREST-OTHER> 522
<INTEREST-TOTAL> 21019
<INTEREST-DEPOSIT> 7394
<INTEREST-EXPENSE> 8614
<INTEREST-INCOME-NET> 12405
<LOAN-LOSSES> 160
<SECURITIES-GAINS> 68
<EXPENSE-OTHER> 8947
<INCOME-PRETAX> 5188
<INCOME-PRE-EXTRAORDINARY> 5188
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 3642
<EPS-PRIMARY> 1.032
<EPS-DILUTED> .999
<YIELD-ACTUAL> 4.4
<LOANS-NON> 0
<LOANS-PAST> 0
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 2247
<CHARGE-OFFS> 96
<RECOVERIES> 68
<ALLOWANCE-CLOSE> 2379
<ALLOWANCE-DOMESTIC> 2379
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
