<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(X) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the Quarterly Period Ended September 30, 1995
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 2-27985
------------------------------
1st Franklin Financial Corporation
A Georgia Corporation I.R.S. Employer No. 58-0521233
213 East Tugalo Street
Post Office Box 880
Toccoa, Georgia 30577
(706) 886-7571
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 of each of the issuer's classes of
common stock, as of the latest practicable date.
Class Outstanding at October 31, 1995
- -------------------------------------- -------------------------------
Common Stock, par value $100 per share 1,700 Shares
<PAGE>
PART I. FINANCIAL INFORMATION
ITEM 1. Financial Statements:
The following financial statements required hereunder are
incorporated by reference from the Company's Quarterly Report to
Investors for the Nine Months Ended September 30, 1995.
See Exhibit 19
Consolidated Statements of Financial Position:
September 30, 1995 and December 31, 1994
Consolidated Statements of Income:
Quarters and Nine Months ended September 30, 1995 and
September 30, 1994
Consolidated Statements of Cash Flows:
Nine Months Ended September 30, 1995 and September 30, 1994
Notes to Consolidated Financial Statements
ITEM 2. Managements' Discussion and Analysis of Financial Condition and
Results of Operations.
The information required hereunder is set forth under "Management's
Letter" of the Company's Quarterly Report to Investors for the Nine
Months Ended September 30, 1995. See Exhibit 19
<PAGE>
PART II. OTHER INFORMATION
ITEM 1. Legal Proceedings
The Company has been named as defendant in the following legal
proceedings in the state of Alabama:
Timothy Anthony and Sandrea M. Anthony vs 1st Franklin Financial
Corporation,et al.; Filed March 15, 1995 in the United States
District Court for the Middle District of Alabama, Northern
Division, Civil Action No. CV-95-D-479-N.
The plaintiff alleges fraud in connection with the sale of
credit insurance and in connection with the refinancing of
loans. At the present, it is too early to reach any type
of informed assessment of the liability of the case. The
case is being vigorously defended.
Dorothy McCurdy vs American General Finance, Inc.; et al. Filed
October 6, 1995 in the U.S. District Court for the Middle
District of Alabama, Northern Division, Civil Action No. 95-D-
1291-N.
This is a class action, of which 1st Franklin Financial
Corporation is a named defendant, alleging certain
violations under the federal Racketeer Influenced and
Corrupt Organizations Act in connection with the sale of
credit insurance. At the present, it is too early to
reach any type of informed assessment of the liability of
the case. The case is being vigorously defended.
Melissa Murray vs 1st Franklin Financial Corporation, a
corporation; Ross Barrett, an individual; Fictitious Parties "A"
through "D", being those persons or entities whose identities
are not known, who extended insurance credit coverage relating
to the transaction, the subject of this lawsuit. Filed October
17, 1995 in the Circuit Court of Jefferson County, Alabama,
Civil Action No. CV-9507428.
The plaintiff alleges fraud in connection with the sale of
credit insurance and in connection with the refinancing of
loans. At the present, it is too early to reach any type
of informed assessment of the liability of the case. The
case is being vigorously defended.
The aforementioned actions are in addition to previously disclosed
complaints. Each of the complaints seek compensatory and punitive
damages. All of these actions are in their early stages and their
outcome currently is not determinable. Management believes that the
Company's Alabama operations are in compliance with applicable
regulations and the actions are without merit. The Company is
diligently contesting them.
<PAGE>
During July and October, the Company entered into settlement
agreements with certain borrowers who had previously asserted claims
or had stated their intention to file claims against the Company.
Although the Company and its employees deny that they are guilty of
any wrongdoing or any breach of any legal obligation or duty to the
Claimants, in recognition of the expense and uncertainty of
liitigation, Management felt it was in the best interest of the
Company to dispose of these cases. The following claims were
disposed of:
Robbie Martin, et al. vs 1st Franklin Financial Corporation, et
al.; Filed November, 1994 in the United States District Court
for the Middle District of Alabama, Southern Division; Civil
Action No. 94-T-1431-S; previously disclosed in the Company's
Form 10-K for the period ended December 31, 1994.
Leo Upshaw asserted claims against 1st Franklin Financial
Corporation and its employees in the Circuit Court for Barbour
County, Alabama, Civil Action No. CV-95-081, which case had been
removed to United States District Court for the Middle District
of Alabama, Case No CV-95-T-737-N; previously disclosed in the
Company's Form 10-Q dated for the quarter ended June 30, 1995.
Edna P. Robinson asserted claims against 1st Franklin Financial
Corporation and its employees in a case filed in the Circuit
Court for Barbour County, Alabama, Civil Action No. CV-95-098,
which case had been removed to the United States District Court
for the Middle District of Alabama, Case No. CV-95-A-738-N;
previously disclosed in the Company's Form 10-Q for the quarter
ended June 30, 1995.
James Russaw asserted claims against 1st Franklin Financial
Corporation in the Circuit Court for Barbour County, Alabama,
Clayton Division; Civil Action No. CV-95-023; previously
disclosed in the Company's Form 10-K for the year ended December
31, 1994.
James Harris, Mary Henderson, Bobbie Hicks, Louis Hill, William
Hollins, Mary Jackson, Billy Jones, Delores King, Willie
Skipper, Earlene Smith, Thelma Thornton, James Wilburn, Curtis
Williams, Houston Wynn, all of whom are residents of Barbour
County, Alabama; and Betty Perdue, who is a resident of Pike
County, Alabama. All were borrowers of 1st Franklin Financial
Financial Corporation for which no suits are presently pending
but which had been threatened.
ITEM 6. Exhibits and Reports on Form 8-K
(a) Exhibits:
19 Quarterly Report to Investors for the Nine Months
Ended September 30, 1995.
(b) Reports on Form 8-K:
No reports on Form 8-K were filed during the quarter ended
September 30,1995.
<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.
1st FRANKLIN FINANCIAL CORPORATION
-----------------------------------
Registrant
Ben F. Cheek, III
-----------------
Chairman of Board
A. Roger Guimond
--------------------------
Vice President and
Chief Financial Officer
Date: November 14, 1995
<PAGE>
<PAGE>
1st FRANKLIN FINANCIAL CORPORATION
INDEX TO EXHIBITS
Exhibit No. Page No.
19 Quarterly Report to Investors for the
Nine Months Ended September 30, 1995. . . . 5
27 Financial Data Schedule . . . . . . . . . . . 14
<PAGE>
<PAGE>
Exhibit 19
1st
FRANKLIN
FINANCIAL
CORPORATION
QUARTERLY
REPORT TO INVESTORS
FOR THE
NINE MONTHS ENDED
SEPTEMBER 30, 1995
<PAGE>
MANAGEMENT'S LETTER
Financial Condition:
Total assets of the Company grew $36.2 million during the nine months ended
September 30, 1995 predominately in the Company's cash position. Cash
generated from increases in sales of the Company's debt securities and
increases in loan payments created $22.9 million (343% increase) in surplus
cash reserves during the period. Other major asset categories which
experienced growth were the Company's loan and investment portfolios.
Increases in funds invested by the Company's insurance subsidiaries and
improved bond market values resulted in a $6.2 million (47%) increase in
the investment portfolio. Net receivables (gross receivables less unearned
finance charges) in the Company's loan portfolio increased $6.9 million (6%)
as a result of increases in consumer loan demand. The aforementioned
increase in sales of the Company's public debt securities caused senior debt
and subordinated debt to increase $30.6 million (35%) during the nine months
just ended.
Results of Operations:
Gross Revenues during the nine months just ended were $40.8 million as
compared to $36.6 million during the same period a year ago primarily due to
increases in interest income. Net earnings on these revenues were $1.8
million and $2.1 million during the quarters ended September 30, 1995 and
1994 and $5.6 million and $5.9 million during the nine month comparable
periods, respectively. Current year net earnings are slightly less than
1994 mainly due to significant increases in interest expense and the
Company's loan loss provision.
Interest income rose $1.2 million (14%) and $3.2 million (13%) during the
quarter and nine-month period just ended as compared to the same periods a
year ago, respectively, primarily due to a higher level of average net
outstanding receivables. Average net receivables were $124.5 million during
the nine months ended September 30, 1995 as compared to $112.3 million during
the same nine-month period ended September 30, 1994. Income earned from the
investment of surplus cash and additional income earned from the increase in
investment securities also contributed to the increase in interest income.
Interest expense increased $.8 million (55%) and $1.8 million (44%) during
the comparable periods due to the aforementioned increase in the Company's
senior and subordinated debt securities issued and an increase in overall
borrowing cost. Higher interest rates caused average borrowing costs to
increase to 7.06% during the nine-month period ended September 30, 1995 as
compared to 6.30% during the same period ended September 30, 1994.
The higher levels of average net receivables outstanding and increases in
bankruptcy filings caused net charge-offs to increase $.5 million (71%) and
$.9 million (52%) during the quarter and nine month periods ended September
30, 1995 and 1994, respectively. This increase in net charge-offs caused the
Company's provision for loan losses to increase $.5 million (78%) and $.9
million (50%) during the comparable periods.
Other operating expenses increased $.8 million (13%) during the quarter
ended September 30, 1995 as compared to the quarter ended September 30, 1994
and $2.1 million (10%) during the nine-month period ended September 30, 1995
as compared to the same nine-month period a year ago. Higher payroll and
employee benefit costs, increases in advertising expenditures, credit bureau
dues, computer expenses, legal and audit expenses, postage, rent expense and
taxes and licenses were the main causes of the increases.
<PAGE>
Effective income tax rates were 28.5% and 31.8% for the quarters ended
September 30, 1995 and 1994 and 29.6% and 31.5% for the nine months then
ended as compared to the same period a year ago, respectively. Certain tax
benefits provided by law to life insurance companies substantially reduce the
life insurance subsidiary's effective tax rate and thus decrease the
Company's consolidated tax rate below statutory rates.
Liquidity:
Liquidity requirements of the Company are financed through the collection of
receivables and through the issuance of public debt securities. Net cash flows
from financing activities, excluding bank borrowings, increased $16.4 million
during the nine months just ended as compared to the same period a year ago
and collections on loans increased $3.8 million over the same period. In
addition to the securities program, the Company has two external sources of
funds through the use of two Credit Agreements. One agreement provides for
available borrowings of $21 million. Available borrowings were $21 million
and $20.6 million at September 30, 1995 and December 31, 1994, respectively,
relating to this agreement. Another agreement provides for an additional
$2 million for general operating purposes, all of which was available
September 30, 1995 and December 31, 1994.
Liquidity was not adversely affected by delinquent accounts although the
percentage of outstanding receivables 60 days or more past due increased to
4.8% of receivables at June 30, 1995 from 4.0% of receivables at December 31,
1994.
The Company has various legal proceedings pending against it in the State of
Alabama alleging different violations of Alabama consumer lending laws and
violations in connection with the sale of credit insurance and loan
refinancing. During July and October, the Company reached settlement
agreements with certain borrowers who had previously asserted claims or had
stated their intention to file claims against the Company. Although the
Company and its employees deny that they are guilty of any wrongdoing or any
breach of any legal obligation or duty to the claimants, in recognition of
the expense and uncertainty of litigation, Management felt it was in the best
interest of the Company to dispose of these cases. All remaining actions are
still in their early stages and their outcome currently is not determinable.
The financial condition and operating results of the Company could be
materially affected in the event of an unfavorable outcome. However,
Management believes that the Company's Alabama operations are in compliance
with applicable regulations and that the actions are without merit. The
Company is diligently contesting the remaining complaints.
Other:
Management continues to explore and evaluate potential new market areas as
part of its expansion plans. Eight new branch offices were opened during the
quarter just ended and currently three additional branch offices are
scheduled to open during the fourth quarter.
<PAGE>
1st FRANKLIN FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
September 30, December 31,
------------ -----------
1995 1994
(Unaudited) (Audited)
ASSETS
CASH AND CASH EQUIVALENTS. . . . . . . . . . . $ 29,609,660 $ 6,689,544
------------ ------------
LOANS, net . . . . . . . . . . . . . . . . . . 115,585,251 108,667,175
------------ ------------
INVESTMENT SECURITIES:
Available for Sale, at fair market value . 14,559,986 12,651,527
Held to Maturity, at amortized cost. . . . 5,433,129 697,144
------------ ------------
19,993,115 13,348,671
------------ ------------
OTHER ASSETS . . . . . . . . . . . . . . . . . 7,515,757 7,762,867
------------ ------------
TOTAL ASSETS. . . . . . . . . . . . $172,703,783 $136,468,257
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
SENIOR DEBT. . . . . . . . . . . . . . . . . . $ 89,465,718 $ 66,677,289
OTHER LIABILITIES. . . . . . . . . . . . . . . 7,067,553 7,582,833
SUBORDINATED DEBT. . . . . . . . . . . . . . . 29,390,467 21,602,656
------------ ------------
Total Liabilities . . . . . . . . . . . 125,923,738 95,862,778
------------ ------------
STOCKHOLDERS' EQUITY:
Common Stock . . . . . . . . . . . . . . . 170,000 170,000
Net Unrealized Gain (Loss) on
Investment Securities Available
for Sale. . . . . . . . . . . . . . . . 46,293 (693,457)
Retained Earnings. . . . . . . . . . . . . 46,563,752 41,128,936
------------ ------------
Total Stockholders' Equity. . . . . . . 46,780,045 40,605,479
------------ ------------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY. . . . . . $172,703,783 $136,468,257
============ ============
The accompanying Notes to Consolidated Financial Statements are
an integral part of these statements.
<PAGE>
1st FRANKLIN FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
Quarter Ended Nine Months Ended
September 30 September 30
---------------------- -----------------------
(Unaudited) (Unaudited)
1995 1994 1995 1994
----------- ----------- ----------- -----------
INTEREST INCOME. . . . . . . $ 9,709,198 $ 8,521,169 $28,319,534 $25,072,870
INTEREST EXPENSE . . . . . . 2,153,487 1,392,011 5,864,043 4,062,180
----------- ----------- ----------- -----------
NET INTEREST INCOME. . . . . 7,555,711 7,129,158 22,455,491 21,010,690
Provision for
Loan Losses. . . . . . 1,196,934 670,816 2,840,339 1,899,001
----------- ----------- ----------- -----------
NET INTEREST INCOME
AFTER PROVISION
FOR LOAN LOSSES. . . . . . 6,358,777 6,458,342 19,615,152 19,111,689
----------- ----------- ----------- -----------
NET INSURANCE INCOME . . . . 3,248,524 2,885,753 9,567,486 8,677,432
----------- ----------- ----------- -----------
OTHER REVENUE. . . . . . . . 107,638 110,513 291,804 272,219
----------- ----------- ----------- -----------
OTHER OPERATING EXPENSES:
Personnel Expense. . . . 4,215,632 3,879,937 13,166,824 11,838,369
Occupancy. . . . . . . . 1,033,911 935,533 2,922,056 2,758,945
Other. . . . . . . . . . 1,915,505 1,536,655 5,449,260 4,840,916
----------- ----------- ----------- -----------
Total . . . . . . . . 7,165,048 6,352,125 21,538,140 19,438,230
----------- ----------- ----------- -----------
INCOME BEFORE INCOME TAXES . 2,549,891 3,102,483 7,936,302 8,623,110
Provision for
Income Taxes . . . . . 727,948 986,885 2,346,592 2,716,569
----------- ----------- ----------- -----------
NET INCOME . . . . . . . . . 1,821,943 2,115,598 5,589,710 5,906,541
RETAINED EARNINGS,
beginning of period. . . . 44,819,256 37,947,674 41,128,936 34,220,868
Dividends on
Common Stock . . . . . 77,447 128,275 154,894 192,412
----------- ----------- ----------- -----------
RETAINED EARNINGS,
end of period. . . . . . . $46,563,752 $39,934,997 $46,563,752 $39,934,997
=========== =========== =========== ===========
EARNINGS PER SHARE (1,700
shares outstanding
all periods) . . . . . . . $1,071.73 $1,244.47 $3,288.06 $3,474.44
========= ========= ========= =========
The accompanying Notes to Consolidated Financial Statements are
an integral part of these statements.
<PAGE>
1st FRANKLIN FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
Increase (Decrease) in Cash and Cash Equivalents
Nine Months Ended
September 30
------------------------
(Unaudited)
1995 1994
----------- -----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income. . . . . . . . . . . . . . . . . . . $ 5,589,710 $ 5,906,541
Adjustments to reconcile net income
to net cash provided by operating activities:
Provision for Loan Losses . . . . . . . . . 2,840,339 1,899,001
Depreciation and Amortization . . . . . . . 791,157 735,299
Other, net. . . . . . . . . . . . . . . . . (115,260) (24,225)
Decrease in Miscellaneous assets. . . . . . 35,519 554,697
(Decrease) in Accounts Payable and
Accrued Expenses . . . . . . . . . . . . (515,280) (449,690)
Net Cash Provided by ----------- -----------
Operating Activities . . . . . . . . 8,626,185 8,621,623
----------- -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Loans Originated or purchased . . . . . . . . . (75,797,595) (70,060,897)
Loan Payments . . . . . . . . . . . . . . . . . 66,039,180 62,193,273
Purchases of marketable debt securities . . . . (6,615,279) (1,465,543)
Sales of marketable securities. . . . . . . . . 510,000 103,897
Redemptions of securities . . . . . . . . . . . 475,000 300,000
Other, net. . . . . . . . . . . . . . . . . . . (738,723) (712,927)
Net Cash Provided by ----------- -----------
Operating Activities . . . . . . . . (16,127,417) (9,642,197)
----------- -----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Increase in Senior Debt . . . . . . . . . . . . 22,788,429 1,921,669
Subordinated Debt Issued. . . . . . . . . . . . 10,584,108 3,701,101
Subordinated Debt redeemed. . . . . . . . . . . (2,796,295) (3,360,624)
Dividends Paid. . . . . . . . . . . . . . . . . (154,894) (192,412)
Net Cash Provided by ----------- -----------
Financing Activities . . . . . . . . 30,421,348 2,069,734
----------- -----------
NET INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS. . . . . . . . . . . . . . 22,920,116 1,049,160
CASH AND CASH EQUIVALENTS, beginning . . . . . . . 6,689,544 5,827,748
----------- -----------
CASH AND CASH EQUIVALENTS, ending. . . . . . . . . $29,609,660 $ 6,876,908
=========== ===========
Cash Paid during the period for: Interest. . . . $ 5,700,418 $ 4,008,156
Income Taxes. . 2,363,221 2,492,500
The accompanying Notes to Consolidated Financial Statements are
an integral part of these statements.
<PAGE>
-NOTES-
1. The accompanying interim financial information of 1st Franklin Financial
Corporation and subsidiaries (the Company) should be read in conjunction
with the annual financial statements and notes thereto as of December 31,
1994 and for the years then ended included in the Company's December 31,
1994 Annual Report.
2. Effective December 31, 1994, 1st Franklin Corporation (formerly the Parent
of the Company) was merged into the Company, with the Company being the
surviving corporation. All financial data for prior years have been
restated to reflect results of the merger.
3. In the opinion of Management of the Company, the accompanying consolidated
financial statements contain all adjustments (consisting of only normal
recurring accruals) necessary to present fairly the Company's financial
position as of September 30, 1995, and December 31, 1994, and the results
of its operations and its cash flows for the nine months ended September
30, 1995 and 1994. While certain information and footnote disclosures
normally included in financial statements prepared in accordance with
generally accepted accounting principles have been condensed or omitted
pursuant to the rules and regulations of the Securities and Exchange
Commission, the Company believes that the disclosures herein are adequate
to make the information presented not misleading.
4. The results of operations for the nine months ended September 30, 1995,
are not necessarily indicative of the results to be expected for the full
fiscal year.
5. The computation of Earnings per Share is self-evident from the
Consolidated Statement of Income and Retained Earnings.
<PAGE>
BRANCH OPERATIONS
Jarrell Coffee. . . . Vice President
Jack Coker. . . . . . Vice President
Isabel Vickery. . . . Vice President
SUPERVISORS
Richard Asmussen Jack Hobgood Melvin Osley
Robert Canfield Wayne Jones Dale Palmer
Susie Cantrell Judy Landon David Reynolds
Donald Carter Jeff Lee Timothy Schmotz
Mike Culpepper Tommy Lennon Joe Seale
Jimmy Davis Dianne Moore Bob Seawright
Tony Ellison Ronnie Morrow Gaines Snow
Donald Floyd
OFFICES:
Alabama Offices: Georgia Offices: Georgia Offices:
- --------------- --------------- ---------------
Alexander City Cartersville McRae
Andalusia Cedartown Milledgeville
Arab Chatsworth Monroe
Athens Clarkesville Montezuma
Bessemer Claxton Monticello
Birmingham Clayton Moultrie
Clanton Cleveland Nashville
Cullman Cochran Newnan
Decatur Commerce Perry
Dothan Conyers Richmond Hill
Enterprise Cordele Rome
Florence Cornelia Royston
Gadsden Covington Sandersville
Huntsville Cumming Savannah
Jasper Dallas Statesboro
Opp Dalton Swainsboro
Ozark Dawson Sylvania
Prattville Douglas Sylvester
Russellville Douglasville Thomaston
Scottsboro Eastman Thomson
Selma Elberton Tifton
Sylacauga Ellijay Toccoa
Troy Forsyth Valdosta
Tuscaloosa Fort Valley Vidalia
Gainesville Warner Robins
Georgia Offices: Garden City Washington
- --------------- Georgetown Winder
Adel Greensboro
Albany Griffin South Carolina Offices:
Alma Hartwell ----------------------
Americus Hawkinsville Aiken
Athens Hazlehurst Anderson
Barnesville Hinesville Cayce
Baxley Hogansville Clemson
Blakely Jackson Easley
Blue Ridge Jasper Gaffney
Bremen Jefferson Greenwood
Brunswick Jesup Lancaster
Buford Lavonia Laurens
Butler Lawrenceville Orangeburg
Cairo Madison Seneca
Calhoun Manchester Union
Canton McDonough York
Carrollton
<PAGE>
DIRECTORS
W. Richard Acree
President, Acree Oil Company
Ben F. Cheek, III
Chairman and Chief Executive Officer
1st Franklin Financial Corporation
Lorene M. Cheek
Homemaker
Jack D. Stovall
President, Stovall Building Supplies, Inc.
Dr. Robert E. Thompson
Physician, Toccoa Clinic
EXECUTIVE OFFICERS
Ben F. Cheek, III
Chairman and Chief Executive Officer
T. Bruce Childs
President and Chief Operating Officer
A. Roger Guimond
Vice President and Chief Financial Officer
Lynn E. Cox
Secretary
Linda L. Sessa
Treasurer
INVESTMENT CENTER
Lynn E. Cox
Account Executive
Phoebe P. Martin
Account Executive
Sandra N. Oliver
New Accounts
COUNSEL
Jones, Day, Reavis & Pogue
3500 One Peachtree Center
303 Peachtree Street, N.E.
Atlanta, Georgia 30308-3242
AUDITORS
Arthur Andersen LLP
133 Peachtree Street, N.E.
Atlanta, Georgia 30303
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> SEP-30-1995
<CASH> 29,609,660
<SECURITIES> 19,993,115
<RECEIVABLES> 146,517,617
<ALLOWANCES> 4,301,492
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 8,248,357
<DEPRECIATION> 5,453,720
<TOTAL-ASSETS> 172,703,783
<CURRENT-LIABILITIES> 96,533,271
<BONDS> 118,551,923
<COMMON> 170,000
0
0
<OTHER-SE> 46,780,045
<TOTAL-LIABILITY-AND-EQUITY> 172,703,783
<SALES> 0
<TOTAL-REVENUES> 40,836,456
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 24,195,772
<LOSS-PROVISION> 2,840,339
<INTEREST-EXPENSE> 5,864,043
<INCOME-PRETAX> 7,936,302
<INCOME-TAX> 2,346,592
<INCOME-CONTINUING> 5,589,710
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 5,589,710
<EPS-PRIMARY> 3,288.06
<EPS-DILUTED> 0
</TABLE>
