<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
/X/ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED JUNE 30, 1995
/ / TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE AT OF 1934 FOR THE TRANSITION PERIOD FROM _________________ TO
_____________________
Commission file number 2-63708
METROPOLITAN MORTGAGE & SECURITIES CO., INC.
(Exact name of registrant as specified in its charter)
WASHINGTON 91-0609840
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
West 929 Sprague Ave., Spokane, WA 99204
(Address of principal executive offices) (Zip Code)
(509)838-3111
(Registrant's telephone number, including area code)
__________________________________________________________
(Former name, former address and former fiscal
year, if changed since last report)
Indicate by check mark whether the registrant (1) has filed all reports
required to be fined 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 / /
APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE
PRECEDING FIVE YEARS: (Not Applicable)
Indicate by check mark whether the registrant has filed all documents and
reports required to be filed by Sections 12, 13 or 15(d) of the Securities
Exchange Act of 1934 subsequent to the distribution of securities under a plan
confirmed by a court.
Yes / / No / /
Applicable only to corporate issuers:
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date.
130 SHARES - Common "A" at July 31, 1995
0 SHARES - Common "B" at July 31, 1995
<PAGE>
METROPOLITAN MORTGAGE & SECURITIES CO., INC.
INDEX
Part I - Financial Information: Page No.
Consolidated Condensed Balance Sheets --
June 30, 1995 (Unaudited) and
September 30, 1994
Consolidated Condensed Statements of Income
Three and Nine Months Ended June 30, 1995
and 1994 (Unaudited)
Consolidated Condensed Statements of Cash Flows
Nine Months Ended June 30, 1995 and 1994
(Unaudited)
Notes to Consolidated Condensed Financial Statements
Management's Discussion and Analysis of Financial
Condition and Results of Operations.
Part II - Other Information
<PAGE>
Part I - Financial Information
METROPOLITAN MORTGAGE & SECURITIES CO., INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
<TABLE>
<CAPTION>
June 30, September 30,
1995 1994
(Unaudited)
<S <C> <C>
ASSETS
Cash and Cash Equivalents $ 11,418,509 $ 29,275,716
Investments:
Trading Securities, at market 13,882,817
Available-for-Sale Securities,
at market 31,966,613 89,070,866
Held-to-Maturity Securities,
at amortized cost (market value
$184,272,225 and $184,740,248) 190,823,328 200,179,999
Accrued Interest on Investments 3,696,958 3,311,822
-------------- ------------
Total Cash and Investments 251,788,225 321,838,403
-------------- ------------
Real Estate Contracts and Mortgage
Notes and Other Receivables 614,245,472 567,256,298
Real Estate for Sale and
Development - Including
Foreclosed Real Estate 84,704,198 76,765,465
-------------- ------------
Total Receivables and Real
Estate Assets 698,949,670 644,021,763
Less Allowance for Losses (7,736,806) (9,108,383)
-------------- ------------
Net Receivables and Real
Estate Assets 691,212,864 634,913,380
-------------- ------------
Deferred Acquisition Costs 74,421,515 74,107,517
Land, Building and Equipment - net
of accumulated depreciation 8,165,837 9,586,595
Other Assets, net of allowance 24,994,658 22,844,008
-------------- --------------
TOTAL ASSETS $1,050,583,099 $1,063,289,903
============== ==============
</TABLE>
The accompanying notes are an integral part of the consolidated financial
statements.
<PAGE>
METROPOLITAN MORTGAGE & SECURITIES CO., INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
<TABLE>
<CAPTION>
June 30, September 30,
1995 1994
(Unaudited)
<S> <C> <C>
LIABILITIES
Life Insurance and Annuity Reserves $ 758,190,980 $ 744,644,625
Debenture Bonds 202,712,931 199,376,783
Other Debt Payable 15,429,217 62,123,139
Securities Sold, Not Yet Purchased 11,180,208
Accounts Payable and Accrued
Expenses 13,849,957 12,756,072
Deferred Income Taxes Payable 10,548,299 10,304,980
Minority Interest in Consolidated
Subsidiaries 1,504,876 1,458,980
-------------- --------------
TOTAL LIABILITIES 1,013,416,468 1,030,664,579
-------------- --------------
STOCKHOLDERS' EQUITY
Preferred Stock, Series A, B, C, D,
E Cumulative with Variable Rate,
$10 Par Value, Authorized 8,325,000
Issued 2,167,361 Shares and
2,143,691 Shares (Liquidation
Preference $47,145,006 and
$43,331,750, respectively) 21,673,613 21,436,910
Class A Common Stock - Voting,
$2,250 Par Value, Authorized
222 Shares, Issued 130 Shares,
respectively 293,417 292,121
Class B Common Stock - Non Voting,
$2,250 Par Value, Authorized 222 Shares,
Issued 0 and 2 Shares, respectively 4,500
Additional Paid-In Capital 14,354,854 10,981,492
Retained Earnings 1,756,836 2,745,678
Net Unrealized Gains (Losses) on
Investments (912,089) (2,835,377)
-------------- --------------
TOTAL STOCKHOLDERS' EQUITY 37,166,631 32,625,324
-------------- --------------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $1,050,583,099 $1,063,289,903
============== =============
</TABLE>
The accompanying notes are an integral part of the consolidated financial
statements.
<PAGE>
<TABLE>
<CAPTION>
METROPOLITAN MORTGAGE & SECURITIES CO., INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF INCOME
(UNAUDITED)
Three Months Ended Nine Months Ended
June 30, June 30,
1995 1994 1995 1994
<S> <C> <C> <C> <C>
REVENUES:
Insurance Premiums Earned $ 725,000 $ 625,000 $ 2,225,000 $ 1,875,000
Interest and Earned Discounts 21,632,908 21,749,211 64,859,056 65,048,733
Real Estate Sales 10,102,055 11,318,122 29,064,369 27,048,129
Fees, Commissions, Service
and Other Income 1,431,697 1,055,095 2,964,196 3,422,723
Gain on Insurance Settlement 203,691 203,691
Realized Investment Gains (Losses) 307,515 432,046 (12,965) 941,034
Realized Gains on Sales of
Receivables 600,689 1,068,702 1,169,657
---------- ---------- ---------- ----------
TOTAL REVENUES 34,799,864 35,383,165 100,168,358 99,708,967
---------- ---------- ---------- ----------
EXPENSES:
Insurance Policy and Annuity
Benefits 11,649,869 10,071,680 33,872,181 30,911,278
Interest Expense 3,869,359 4,573,753 12,704,980 14,551,487
Cost of Real Estate Sold 9,578,780 10,788,410 27,927,865 26,315,761
Provision for Losses on Real
Estate Assets 822,094 1,635,274 2,885,227 4,871,203
Salaries and Employee
Benefits 2,466,458 2,253,343 7,289,653 6,542,036
Commissions to Agents 3,668,471 2,397,980 9,870,934 5,878,906
Other Operating and
Underwriting Expenses 1,308,502 1,860,397 4,233,185 6,304,633
Less Increase in Deferred
Acquisition Costs (854,895) 250,361 (2,447,035) 214,573
---------- ----------- ---------- -----------
TOTAL EXPENSES 32,508,638 33,831,198 96,336,990 95,589,877
---------- ---------- ---------- ----------
Income Before Income Taxes and
Minority Interest 2,291,226 1,551,967 3,831,368 4,119,090
Provision For Income Taxes (659,396) (541,406) (1,184,944) (1,442,120)
---------- ---------- ---------- ----------
Income Before Minority
Interest 1,631,830 1,010,561 2,646,424 2,676,970
Income of Consolidated
Subsidiaries Allocated to
Minority Stockholders (41,257) (70,346) (48,178) (199,154)
---------- ---------- ---------- ----------
NET INCOME $ 1,590,573 $ 940,215 $ 2,598,246 $ 2,477,816
========== ========== ========== ==========
The accompanying notes are an integral part of the consolidated financial statements.
</TABLE>
METROPOLITAN MORTGAGE & SECURITIES CO., INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(UNAUDITED)
<TABLE>
<CAPTION>
Nine Months Ended
June 30,
1995 1994
RESTATED
<S> <C> <C>
Net Cash Provided By
Operating Activities $ 27,056,461 $ 37,063,262
----------- ----------
Cash Flows From Investing Activities:
Sale of Subsidiaries, Net of Cash Given (1,406,873)
Principal Payments on Real Estate
Contracts and Mortgage Notes 68,639,822 88,697,732
Proceeds From Real Estate Sales 2,641,454 3,743,593
Proceeds from Insurance Settlements 203,691
Proceeds From Investment Maturities 2,098,271 8,121,293
Proceeds from Sale of Held to
Maturity Securities 28,185
Proceeds from Sale of Available
for Sale Securities 92,723,926 211,519,629
Purchase of Available for Sale
Securities (34,387,059) (279,790,902)
Purchase of Held to Maturity
Investments (1,423,700) (5,259,207)
Proceeds From Sale Real Estate Contracts 27,189,632 12,178,261
Acquisition of Mortgage Notes (157,416,396) (101,474,274)
Additions to Real Estate Held (28,446,593) (18,212,135)
Capital Expenditures (735,003) (96,845)
----------- ------------
Net Cash Used In Investing Activities (30,522,519) (80,340,979)
------------ ------------
Cash Flows From Financing Activities:
Net Change Short Term Borrowings from
Brokers and Banks (46,797,500) 19,651,250
Receipts From Life and Annuity Products 113,843,087 62,671,844
Withdrawals on Life and Annuity Products (87,056,993) (94,558,805)
Repayment to Banks and Others (397,926) (2,445,084)
Issuance of Debenture Bonds 44,257,648 37,623,351
Issuance of Preferred Stock 3,949,300 1,034,971
Repayment of Debenture Bonds (38,206,505) (34,561,613)
Cash Dividends (3,587,088) (2,565,003)
Redemption of Capital Stock (395,172) (663,488)
----------- -----------
Net Cash Used In Financing Activities (14,391,149) (13,812,577)
----------- -----------
Net Increase (Decrease) in Cash and
Cash Equivalents (17,857,207) (57,090,294)
Cash and Cash Equivalents at Beginning
of Period 29,275,716 72,903,375
----------- -----------
Cash and Cash Equivalents at End
of Period $ 11,418,509 $ 15,813,081
=========== ===========
</TABLE>
The accompanying notes are an integral part of the consolidated financial
statements.
METROPOLITAN MORTGAGE & SECURITIES CO., INC.
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENT
1. In the opinion of the Company, the accompanying unaudited consolidated
condensed financial statements contain all adjustments necessary to
present fairly the financial position as of June 30, 1995, and the
results of operations for the three and nine months ended June 30, 1995
and 1994 and changes in cash flows for the nine months ended June 30,
1995 and 1994. The results of operations for the nine month period ended
June 30, 1995 and 1994 are not necessarily indicative of the results to
be expected for the full year.
2. The principal amount of receivables as to which payments were in arrears
more than three months was $17,600,000 at June 30, 1995 and $19,000,000
at September 30, 1994.
3. Metropolitan Mortgage & Securities Co., Inc had no outstanding legal
proceedings other than normal proceedings associated with receivable
foreclosures.
4. Certain amounts in the prior year's consolidated condensed financial
statements have been reclassified to conform with the current year's
presentation. These reclassifications had no effect on net income or
retained earnings as previously reported. Additionally, the consolidated
condensed statement of cash flows for the prior year's month period has
been restated to show short term borrowings from brokers and banks as a
net change item as compared to the previous presentation showing gross
borrowings and gross repayments. The change had no effect on the total
net cash used in financing activities for the period.
5. On January 31, 1995 the Company concluded an agreement with Summit
Securities, Inc. (Summit), whereby it sold Metropolitan Investment
Securities, Inc. (MIS) to Summit, at a sale price of $288,950, which
approximated the current book value of MIS at date of sale. On May 31,
1995 the Company concluded an agreement with Summit, whereby it sold Old
Standard Life Insurance Company (OSL) to Summit effective May 31, 1995,
at a sale price of $2,722,000, which approximated the current book value
of OSL at date of sale, with future contingency payments based on the
earnings of OSL. The sales price plus estimated future contingency
payments approximates the actuarial appraised valuation of OSL.
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
Completed Transactions:
On January 31, 1995, Metropolitan Mortgage & Securities Co., Inc. (Metro
or the Company) and Summit Securities, Inc. (Summit) consummated a
sale/purchase transaction whereby 100% of the common stock of Metropolitan
Investment Securities, Inc. (MIS) was sold to Summit. The cash sale/purchase
price was $288,950, the approximate net book value of MIS at closing. MIS is a
limited-purpose broker dealer and the exclusive broker/dealer for the
securities sold by Metro and Summit. It is anticipated that this sale will not
materially affect the future business operations of MIS. Additionally, by
agreement, effective January 31, 1995, Metro discontinued its property
development division, which consisted of a group of employees experienced in
real estate development. On the same date, Summit commenced the operation of a
property development subsidiary employing those same individuals who had
previously been employed by Metro. Summit Property Development Corporation, a
100% owned subsidiary of Summit, has negotiated an agreement with Metro to
provide future property development services.
On May 31, 1995, Metro and Summit consummated a sale/purchase transaction
whereby 100% of the common stock of Old Standard Life Insurance Company (OSL)
was sold to Summit. The cash sale/purchase price was $2,722,000, the
approximate net book value of OSL at closing, with future contingency payments
based on the earnings of OSL. The sale/purchase price plus estimated future
contingency payments approximates the actuarial appraised valuation of OSL.
OSL is engaged in the business of acquiring receivables using funds derived
from the sale of annuities and funds derived from receivable cash flows. The
sale of OSL decreased total assets by approximately $46.2 million while total
liabilities also decreased by approximately $46.2 million. Significant assets
removed from the consolidated financial statement included cash and cash
equivalents of $1.4 million, investments of $9.4 million, receivables of $32.1
million, real estate of $.5 million, deferred acquisition costs of $2.6 million
and other assets of $.2 million. Significant liabilities removed included
insurance annuity reserves of $44.5 million and accounts payable and other
liabilities of $1.7 million.
Pending Transactions:
During July 1995, the Company finalized a $1.35 million sale of real
estate for cash, resulting in a gain from the sale of approximately $1.0
million. Additionally in July 1995, the Company completed negotiations and
finalized the sale of approximately $19.3 million of receivables resulting in a
gain of approximately $1.5 million.
Financial Condition and Liquidity:
As of June 30, 1995, the Company had cash and cash equivalents of $11.4
million and liquid investments (trading or available-for-sale securities) of
$45.8 million compared to $9.9 million in cash and cash equivalents and $58.2
million in liquid investments at March 31, 1995, $5.3 million in cash and cash
equivalents and $80.6 million in liquid investments at December 31, 1994 and
$29.3 million in cash and cash equivalents and $89.1 million in liquid
investments at September 30, 1994. Management believes that cash, cash
equivalents and liquidity provided by other investments is adequate to meet any
planned asset additions, debt retirements or other business operational
requirements during the next twelve months.
The receivable portfolio totaled $614.2 million at June 30, 1995 compared
to $617.1 million at March 31, 1995, $585.4 million at December 31, 1994 and
$567.3 million at September 30, 1994. The June 30, 1995 total was affected by
the $32.1 million of receivables which were removed upon the sale of OSL.
During the nine months ended June 30, 1995, the increase resulted primarily
from the acquisition of receivables in the amount of $157.4 million plus an
additional $26.4 million in loans to facilitate the sale of real estate,
partially offset by principal collections on receivables in the amount of $68.6
million, $27.2 million in proceeds from the sale of receivables and a reduction
of $8.9 million associated with foreclosed receivables.
Real estate held for sale and development increased to $84.7 million at
June 30, 1995 from $80.6 million at March 31, 1995, $78.3 million at December
31, 1994 and $76.8 million at September 30, 1994. The increase was primarily
the result of additional construction at the Company's condominium timeshare
resort in Hawaii along with the development of industrial and commercial
property sites in the Spokane and Tri Cities areas of Washington.
Life insurance and annuity policy reserves increased $13.6 million during
the nine months ended June 30, 1995 to approximately $758.2 million from $744.6
million at September 30, 1994. This increase resulted from credited earnings
of $31.3 million along with $26.7 million of new cash flow as receipts from
sales of new life and annuity products of $113.8 million exceeded withdrawals
of $87.1 million from existing policies. These increases were offset by
approximately $44.5 million of reserves which were removed upon the sale of
OSL. Debenture bonds payable increased by $3.3 million to $202.7 million at
June 30, 1995 from $199.4 million at September 30, 1994. Net cash flow from
the issuance of debenture less maturities was approximately $6.1 million with
an additional reduction of $2.8 million associated with the withdrawal of
previously credited earnings on the outstanding debentures. Additionally, the
Company had cash flow, net of redemptions, of approximately $3.6 million from
the sale of preferred stock during the nine months ended June 30, 1995. During
the nine month period ended June 30, 1995, the Company reduced short term
borrowings by approximately $46.8 million to an outstanding amount of $13.9
million. In addition, the Company had liabilities at June 30, 1995 of
approximately $11.2 million from securities sold, but not yet purchased.
Results of Operations:
The Company recorded net income before preferred dividends for the nine
months ended June 30, 1995 of $2,598,000 compared to $2,478,000 in the prior
year's period. Comparing the current year's nine month period with the prior
year's, decreases from the reduction in the net interest spread, reduced gains
on the sale of investments and increased deferred acquisition cost amortization
were almost completely offset by a reduced provision for losses on receivables
and real estate and a reduction in other operating expenses. Additionally. the
Company incurred substantial increases in salary and commission costs,
associated with the increased insurance product sales, which were capitalized
as deferred acquisition costs.
The general increase in the level of interest rates over the recent
nine month period has reduced the degree of interest spread earnings available
to the Company and competing investment alternatives have become more
attractive to customers thus increasing the level of policy surrenders.
Management has controlled the outflow from policy surrenders by continuing to
adjust the credited interest rates, however, these adjustments have had an
effect on net interest spread as the current year's net interest spread of
$20.5 million is down slightly from last year's total of $21.5 million. The
degree of amortization of insurance and annuity related acquisition costs is a
direct result of the projected rate of these customer surrenders and the future
spread earnings. The projected rate of surrenders and spread income is
significantly influenced by the level of current surrenders and the available
interest spread. These factors have acted in concert to increase the current
year's amortization of deferred acquisition costs to $8.0 million as compared
to $6.1 million in the prior year's period. Additionally, in the current year
the Company has incurred other increased expenses especially commissions
related to increased sales of life and insurance products. These costs
associated with the sales of insurance products have been capitalized as
deferred insurance acquisition costs. In the current year's nine month period
capitalized acquisition expenses were $10.4 million less amortization of $8.0
million, resulting in a net increase in acquisition cost of $2.4 million as
compared to a $.2 million decrease in the prior year as capitalized acquisition
costs of $5.9 million were offset by $6.1 million in amortization.
During the nine months ended June 30, 1995, the Company realized net
losses from the sale of investments of $13,000 compared to net gains of
$941,000 in the prior year. Management made the decision to take losses on
certain investments in order to take advantage of reinvesting in higher
yielding investment opportunities. Additionally, in the current year the
Company realized gains of $1.1 million from the sale of receivable investments
compared to gains of $1.2 million in the prior year. The Company continues to
evaluate opportunities for the sale of selected assets.
Based on trends beginning in fiscal 1994 and continuing during the nine
month period ended June 30, 1995, the Company has reported marked improvement
in the delinquency rates for its receivable portfolio. In conjunction with
these improved delinquency rates and a stable to improving real estate market
the Company has been able to reduce additions to its allowance for losses. In
the nine months ended June 30, 1995 the Company made provisions for losses of
$2.9 million compared to $4.9 million in the prior year, for an improvement of
$2.0 million.
The Company realized net gains of $1.1 million on sales of $29.1 million
of real estate in the current period compared to net gains of $.7 million on
sales of $27.0 million in the prior year. It has been the policy of management
to actively sell its real estate in order to return the investment to an
earning asset. In addition to returning these assets to earning status, the
Company has been able to reduce other operating expenses associated with its
real estate, such as insurance, taxes, maintenance and amenities. These
reductions in costs associated with real estate holdings have been the primary
items supporting the reduction in other operating expenses by $2.1 million when
comparing the current year's period with the prior.
During the nine months ended June 30, 1995, the Company sustained a
reduction in fee, commission, service and other income of approximately
$459,000. This reduction is primarily the result of reduced rents due to real
estate properties being sold, losses generated from the start up of a
restaurant in Hawaii and a non-reoccurring item in the prior year where the
Company was able to negotiate a discounted payoff of a corporate liability.
New Accounting Rules:
In May 1993, Statement of Financial Accounting Standards No.114 (SFAS
No.114) "Accounting by Creditors for Impairment of a Loan" was issued.
Additionally, in October 1994, Statement of Financial Accounting Standards
No.118 (SFAS No.118) "Accounting by Creditors for Impairment of a Loan-Income
Recognition and Disclosures" (an amendment to SFAS No.114) was issued. SFAS
No.114 (as amended by SFAS No.118) requires that certain impaired loans be
measured based on the present value of expected cash flows discounted at the
loans' effective interest rate or the fair value of the collateral. The
Company is required to adopt this new standard by October 1, 1995. This
adoption of SFAS No.114 and SFAS No.118 is expected to have no material effect
on the consolidated financial statements.
In October 1994, Statement of Financial Accounting Standards No.119 (SFAS
No.119) "Disclosure about Derivative Financial Instruments and Fair Value of
Financial Instruments" was issued. SFAS No.119 requires certain disclosure
regarding derivative instruments held by the Company effective for financial
statements issued for their fiscal year ending September 30, 1995. This
statement does not require application for interim financial statements before
this date.
<PAGE>
PART II - OTHER INFORMATION
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.
METROPOLITAN MORTGAGE & SECURITIES CO., INC.
(Registrant)
/s/ C. PAUL SANDIFUR, JR.
Date --------------- -------------------------------------------------
C. Paul Sandifur, Jr., President
/s/ ERNEST JURDANA
Date --------------- -------------------------------------------------
Ernest Jurdana, Chief Financial
Officer
/s/ STEVEN CROOKS
Date --------------- -------------------------------------------------
Steven Crooks, Controller
(Principal Accounting Officer)
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> SEP-30-1995
<PERIOD-END> JUN-30-1995
<CASH> 11,419
<SECURITIES> 240,370
<RECEIVABLES> 614,245
<ALLOWANCES> 7,737
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 16,548
<DEPRECIATION> 8,382
<TOTAL-ASSETS> 1,050,583
<CURRENT-LIABILITIES> 0
<BONDS> 229,322
<COMMON> 293
0
21,674
<OTHER-SE> 15,200
<TOTAL-LIABILITY-AND-EQUITY> 1,050,583
<SALES> 0
<TOTAL-REVENUES> 100,168
<CGS> 0
<TOTAL-COSTS> 80,747
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 2,885
<INTEREST-EXPENSE> 12,705
<INCOME-PRETAX> 3,831
<INCOME-TAX> 1,185
<INCOME-CONTINUING> 2,646
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 2,598
<EPS-PRIMARY> (3,748.00)
<EPS-DILUTED> (3,748.00)
</TABLE>
