U.S. SECURITIES AND EXCHANGE COMMISSION PRIVATE
Washington, D.C. 20549
Form 10-QSB
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR (15)d OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 1997
------------------
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period to
------------- ------------
Commission file number: 0-12199
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SOURCE CAPITAL CORPORATION
------------------------------------------------------
(Exact name of registrant as specified in its charter)
Washington 91-0853890
------------------------------- ---------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
1825 N. Hutchinson Road, Spokane, Washington 99212
------------------------------------------------------
(Address of principal executive office)
(509) 928-0908
------------------------------------------------------
(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 registrant 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 September 30, 1997, there were 1,360,818 shares of the
Registrant's common stock outstanding.
<PAGE>
SOURCE CAPITAL CORPORATION
Form 10-QSB
For the Quarter Ended September 30, 1997
Index
Part I - Financial Information
Item 1 - Financial Statements:
- Consolidated Balance Sheets September 30, 1997
and December 31, 1996
- Consolidated Statements of Income and Retained
Earnings - Three and Nine Months Ended
September 30, 1997 and 1996
- Consolidated Statements of Cash Flows - Nine
Months Ended September 30, 1997 and 1996
- Notes to Consolidated Financial Statements
Item 2 - Management's Discussion and Analysis of
Financial Condition and Results of Operations
PART II - Other Information
<PAGE>
Part I - Financial Information
Item 1. Financial Statements
SOURCE CAPITAL CORPORATION
CONSOLIDATED BALANCE SHEETS (Unaudited)
September 30, December 31,
1997 1996
------------- ------------
ASSETS
Loans and leases receivable, net $34,589,978 $26,059,031
Accrued interest receivable 303,970 295,047
Cash and cash equivalents 388,333 21,506
Deferred compensation trust 910,606 840,881
Investment securities (at market) 256,941 740,004
Other real estate owned 556,342 916,196
Other assets 241,597 360,839
Deferred income tax 1,599,160 1,685,535
----------- -----------
Total assets $38,846,927 $30,919,039
=========== ===========
LIABILITIES
Note payable to bank $22,169,954 $14,000,000
Mortgage contracts payable 3,195,882 3,222,379
Accounts payable and accrued expenses 383,155 543,083
Deferred compensation payable 910,606 840,881
----------- -----------
Total liabilities 26,659,597 18,606,343
----------- -----------
STOCKHOLDERS' EQUITY
Preferred stock, no par value, 10,000,000
shares authorized, none outstanding
Common stock, no stated par value
Authorized 10,000,000 shares; issued
and outstanding, 1,360,818 and
1,417,220 shares 7,073,805 7,462,827
Additional paid in capital 2,049,047 2,049,047
Unrealized loss on investment securities (20,926) (10,480)
Retained earnings 3,085,404 2,811,302
----------- -----------
Total stockholders' equity 12,187,330 12,312,696
----------- -----------
Total liabilities and stockholders'
equity $38,846,927 $30,919,039
=========== ===========
The accompanying notes are an integral part of the consolidated
financial statements.
<PAGE>
SOURCE CAPITAL CORPORATION
CONSOLIDATED STATEMENTS OF INCOME AND RETAINED EARNINGS
For the Three and Nine Months Ended September 30, 1997 and 1996
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
September 30, September 30,
----------------------- -----------------------
1997 1996 1997 1996
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Revenues:
Interest and lease income $1,301,958 $ 887,933 $3,549,926 $2,367,605
Interest expense (554,108) (290,937) (1,387,434) (700,440)
---------- ---------- ----------- ----------
Net interest and lease
revenue 747,850 596,996 2,162,492 1,667,165
---------- ---------- ---------- ----------
Non-interest income and
provision for loan losses:
Gain on sales of invest-
ments, loans and real
estate 48,379 48,557 29,502
Provision for loan losses (13,000) (15,000) (13,000) (45,000)
---------- ---------- ---------- ----------
783,229 581,996 2,198,049 1,651,667
---------- ---------- ---------- ----------
Non-interest expenses:
Employee compensation and
benefits 301,462 207,703 871,567 631,177
Other operating expenses 173,486 114,343 517,281 365,469
---------- ---------- ---------- ----------
Total non interest
expenses 474,948 322,046 1,388,848 996,646
---------- ---------- ---------- ----------
Income before income taxes 308,281 259,950 809,201 655,021
---------- ---------- ---------- ----------
Income tax provision:
Current (79,700) (58,500) (193,625) (132,675)
Deferred and other (27,300) (30,000) (86,375) (89,825)
---------- ---------- ---------- ----------
Total income tax provision (107,000) (88,500) (280,000) (222,500)
Net income 201,281 171,450 529,201 432,521
Retained earnings, beginning
of period 2,884,123 2,225,418 2,811,302 2,177,804
Dividends paid (255,099) (213,457)
---------- ---------- ---------- ----------
Retained earnings, end of
period $3,085,404 $2,396,868 $3,085,404 $2,396,868
========== ========== ========== ==========
Net income per common share $ .15 $ .12 $ .38 $ .30
========== ========== ========== ==========
Weighted average number of
common shares and common
shares equivalents
outstanding 1,368,418 1,434,632 1,378,749 1,435,135
========== ========== ========== ==========
Cash dividends per share None None $ .18 $ .15
========== ========== ========== ==========
</TABLE>
The accompanying notes are an integral part of the consolidated
financial statements.
<PAGE>
SOURCE CAPITAL CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Nine Months Ended September 30, 1997 and 1996 (Unaudited)
<TABLE>
<CAPTION>
1997 1996
------------ ------------
<S> <C> <C>
Cash flows from operating activities:
Net income $ 529,201 $ 432,521
Adjustments to reconcile net income to
net cash provided by operating
activities:
Depreciation 20,152 15,742
Provision for loan losses 13,000 45,000
Deferred income taxes 86,375 89,825
Gain on sale of investment securities (4,559) (16,745)
Gain on sale of real estate, furniture
& equipment (43,998) (12,756)
Compensation associated with stock
options granted 8,800
Change in:
Accrued interest receivable (14,934) (110,805)
Other assets 163,705 (59,926)
Deferred compensation trust (69,725) (70,291)
Accounts payable and accrued
expenses (159,928) 190,562
Deferred compensation payable 69,725 70,291
------------ ------------
Net cash provided by operating
activities 597,814 573,418
------------ ------------
Cash flows from investing activities:
Purchases of investment securities (299,877)
Sale of investment securities 477,176 94,122
Loan and lease originations (14,764,474) (14,923,424)
Loan and lease repayments 6,497,121 6,875,693
Capitalization of costs related to
other real estate owned (5,929) (84,094)
Proceeds from sale of other real estate 139,198 462,844
Purchase of office equipment and vehicle (65,190) (88,848)
Proceeds from sale of office equipment 575 52,897
------------ ------------
Net cash used by investing
activities (7,721,523) (7,910,687)
------------ ------------
Cash flows from financing activities:
Proceeds from line of credit 12,856,586 12,595,500
Payments on line of credit (4,686,632) (5,270,500)
Payments of mortgage contracts payable (26,497)
Payments for redemption of common stock (397,822) (8,252)
Cash dividends paid (255,099) (213,457)
------------ ------------
Net cash provided by financing
activities 7,490,536 7,103,291
------------ ------------
</TABLE>
<PAGE>
SOURCE CAPITAL CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS, CONTINUED
For the Nine Months Ended September 30, 1997 and 1996 (Unaudited)
<TABLE>
<CAPTION>
1997 1996
------------ ------------
<S> <C> <C>
Net increase (decrease) in cash and cash
equivalents 366,827 (233,978)
Cash and cash equivalents, beginning of
period 21,506 393,374
------------ ------------
Cash and cash equivalents, end of period $ 388,333 $ 159,396
============ ============
Supplemental disclosure of cash flow
information:
Cash paid during the period for interest $ 1,319,380 $ 700,440
Cash paid during the period for income
taxes 398,825 115,760
Non-cash financing and investing
transactions:
Loan and interest converted to
other real estate 106,611 293,845
Financing sales of real estate owned 377,194
</TABLE>
The accompanying notes are an integral part of the consolidated
financial statements.
<PAGE>
SOURCE CAPITAL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1.
The financial information given in the accompanying unaudited
consolidated financial statements reflect all adjustments, which in
the opinion of management, are necessary to a fair statement for the
periods reported. Certain 1996 amounts have been reclassified to
conform with the 1997 presentation. These reclassifications had no
effect on the net income or retained earnings as previously reported.
The results of operations for the nine-month period ended
September 30, 1997, are not necessarily indicative of the results to
be expected for the full year. These unaudited financial statements
should be read in conjunction with the Company's most recent audited
financial statements.
NOTE 2.
The consolidated financial statements include the accounts of the
Company and its wholly owned subsidiary, Source Capital Leasing Co.
All significant intercompany transactions and balances have been
eliminated in consolidation.
NOTE 3.
The Company's provision for federal income taxes for the nine months
ended September 30, 1997 and 1996, is calculated using the statutory
corporate income tax rate of 34%. The actual current income tax
liability to the Company for the year ending December 31, 1997, is
estimated to be significantly less than the statutory corporate tax
rate, after considering the Company's net operating loss carryovers.
Notwithstanding the foregoing statement the Company's actual tax
liability paid for the year ended December 31, 1996 resulted in an
effective tax rate of approximately 31%.
NOTE 4.
During the nine months ended September 30, 1997, the Company's
subsidiary, Source Capital Leasing Co. entered into several direct
financing leases for equipment as lessor.
The following lists the components of the Company's net investment in
leases, which are included in loans and leases receivable on the
consolidated balance sheet at September 30, 1997:
Minimum lease payments receivable $1,891,608
Estimated unguaranteed residual values of
leased property 105,136
Less unearned finance income (546,601)
----------
Net investment in direct financing leases $1,450,142
==========
<PAGE>
NOTE 5.
In June 1997, the Financial Accounting Standards Board (the "FASB")
issued Statement of Financial Accounting Standards ("SFAS") No. 131,
Disclosures about Segments for an Enterprise and Related Information
("SFAS 131"). This Statement will change the way public companies
report information about segments of their business in their annual
financial statements and requires them to report selected segment
information in their quarterly reports issued to shareholders. It
also requires entity-wide disclosures about the products and services
an entity provides, and its major customers. The Statement is
effective for fiscal years beginning after December 15, 1997. The
Company has not yet determined the effect, if any, of SFAS 131 on
its consolidated financial statements.
In June 1997, the FASB issued SFAS No. 130, Reporting Comprehensive
Income. This Statement requires that comprehensive income be reported
in a financial statement that is displayed with the same prominence as
other financial statements. This Statement does not require a
specific format for the financial statement, but requires that an
enterprise display net income as a component of comprehensive income
in the financial statement. Comprehensive income is defined as the
change in equity of a business enterprise arising from non-owner
sources. The classifications of comprehensive income under current
accounting standards include foreign currency items, minimum pension
liability adjustments, and unrealized gains and losses on certain
investments in debt and equity securities. This Statement will affect
the Company's reporting of unrealized gains and losses on investment
securities requiring reporting of this item on the financial statement
that reports comprehensive income. Management has not yet determined
which format it will choose to display comprehensive income. This
Statement is effective for fiscal years beginning after December 15,
1997.
In February 1997, the FASB issued SFAS No. 128, Earnings per Share
("SFAS 128"). SFAS 128 establishes standards for computing and
presenting earnings per share ("EPS") and simplifies the existing
standards. This Standard replaces the presentation of primary EPS
with a presentation of basic EPS. It also requires the dual
presentation of basic and diluted EPS on the face of the income
statement for all entities with complex capital structures and
requires a reconciliation of the numerator and denominator of the
basic EPS computation to the numerator and denominator of the diluted
EPS computation. SFAS 128 is effective for financial statements
issued for periods ending after December 15, 1997, including interim
periods and requires restatement of all prior-period EPS data
presented. The Company does not believe the application of this
standard will have a material effect on the presentation of its basic
and diluted EPS.
<PAGE>
SOURCE CAPITAL CORPORATION
PART I - FINANCIAL INFORMATION
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations
GENERAL
-------
The discussions contain some forward-looking statements. A forward-
looking statement may contain words such as "will continue to be,"
"will be," "continue to," "anticipates that," "to be," or "can
impact." Management cautions that forward-looking statements are
subject to risks and uncertainties that could cause the Company's
actual results to differ materially from those projected in forward-
looking statements.
Nine Months Ended September 30, 1997 Compared to Nine Months ended
September 30, 1996
------------------------------------------------------------------
For the nine months ended September 30, 1997, the Company reported a
net income of $529,201 or $.38 per share. These results compare to a
net income of $432,521 or $.30 per share, for the comparable period in
1996. Net interest and lease income (interest and lease income less
interest expense) increased by approximately $495,000 as compared to
the nine months ended September 30, 1996. Interest and lease income
of approximately $3,550,000 and $2,368,000 in the nine months ended
September 30, 1997 and 1996, respectively, represents an approximate
average interest yield of 16.1% and 16.7%, respectively, on the
company's average earning assets.
Total non-interest expenses increased approximately 39% over the first
nine months of 1996 primarily from a 38% increase in salaries and
benefits due to the addition of six new personnel. Additionally other
operating expenses increased by approximately $152,000 or 42% over the
prior year. Of the increase in other expense the most significant was
a $59,000 increase in occupancy due to the Company's larger facilities
in Seattle, the opening of an office in Portland, Oregon and the
expansion of its Spokane facilities. In addition the Company incurred
additional expenses of approximately $21,000 for appraisal fees on
various properties held as collateral on its loan portfolio. The
purpose of the appraisals was to allow the Company to increase its
borrowing capacity on specific loans in its portfolio. There were
other increases and decreases in its operating expenses none of which
is material when considered individually.
The Company's average earning asset portfolio grew from $18.9 million
for the nine months ended September 30, 1996 to approximately $29.4
million at September 30, 1997. The growth in the portfolio is
directly attributable to the increase in production personnel and to a
slight increase in the average term of the loan and lease portfolio.
At September 30, 1997 the Company had approximately $455,000 of non-
performing loans in its portfolio. These loans are well
collateralized and management does not expect to incur a significant
loss. There were no non-performing leases at September 30, 1997. The
Company's reserve for loan and lease losses of approximately $212,000
is considered adequate as of September 30, 1997.
<PAGE>
The recorded provision for income taxes of approximately $280,000 and
$223,000 for the nine months ended September 30, 1997 and 1996,
respectively, is based on the statutory income tax rate of 34%. The
Company expects to pay current income taxes significantly less than
the estimated tax provision for the year ended December 31, 1997, due
to the utilization of net operating loss carryovers. The Company's
effective tax rate for taxes paid in 1996 was approximately 31%.
Three Months Ended September 30, 1997 Compared to Three Months Ended
September 30, 1996
--------------------------------------------------------------------
For the three months ended September 30, 1997, the Company reported a
net income of $201,281 or $.15 per share. This compares to a net
income of $171,450 or $.12 per share, for the comparable period in
1996. Net interest and lease income (interest and lease income less
interest expense) increased from approximately $597,000 during the
three months ended September 30, 1996 to approximately $748,000 for
the comparable period in 1997, a 25% increase. Interest and lease
income of approximately $1,302,000 and $888,000 in 1997 and 1996,
respectively, represents an approximate average interest yield of
15.5% and 16.5%, respectively, on the Company's average earning
assets. The decrease in yield on the Company's loan and investment
portfolio was primarily the result of repayment of several loans prior
to maturity in the third quarter of 1996, which resulted in the
recognition of a larger portion of deferred loan fees in that quarter
as compared to 1997. Additionally the Company sold a shopping center
in the fourth quarter of 1996, which resulted in the replacement of
rent income on the center with interest income on the loan, which the
Company carries on the center. The interest received on the loan in
the third quarter of 1997 is significantly less than rent received on
the center in the comparable period in 1996.
The Company's average earning asset portfolio grew from approximately
$21.6 million in the third quarter of 1996 to approximately $33.6
million in the quarter ended September 30, 1997. This growth was
accomplished due to significant growth in the loan portfolio in the
second half of 1996 and a near doubling of net loan production (new
loan production less loan repayments) in the second quarter of 1997 as
compared to 1996.
The increase in interest and lease income for the quarter of
approximately $414,000 was primarily due to the approximate $12
million increase in average earning assets over the third quarter of
1996. The increase in revenue was partially offset by an increase in
interest expense of approximately $263,000 due to increased borrowings
to fund the increase in the loan portfolio. The Company's cost of
funds on average borrowings remained level at approximately 9.4% for
the quarters ended September 30, 1997 and 1996. The Company was able
to mitigate a general increase in interest rates by funding a portion
of its loan portfolio using a "LIBOR" based rate, which is currently
more attractive than a prime based rate. The Company's borrowing rates
are variable based on prime and/or "LIBOR". As a result of increased
leverage (more borrowing related to funding increased lending
activity), the decrease in yield and level cost of funds, net interest
margin on earning assets (annualized interest and lease income, minus
interest expense, divided by average earning assets for the quarter)
decreased from 11.1% in 1996 to 8.9% for the quarter ended
September 30, 1997.
<PAGE>
At September 30, 1997 there were approximately $455,000 of loans in
the Company's portfolio, which were considered non-performing. This
compares to approximately $1.1 million of non-performing loans at
September 30, 1996. These non-performing loans and approximately
$556,000 of other real estate did not contribute to third quarter
earnings.
Non-interest operating expenses increased approximately $153,000 for
the three months ended September 30, 1997 as compared to the third
quarter of 1996. The increase was primarily due to an increase of
approximately $94,000 in salaries and benefits related to the addition
of five personnel in the second quarter of 1997 and one additional
person in the third quarter. Three of the new employees are employed
by the Company's wholly owned subsidiary, Source Capital Leasing Co.
and two are employed by Source Capital Finance Inc., the Company's
second wholly owned subsidiary. Both subsidiaries are virtually start
up operations. The leasing subsidiary lost a total of approximately
$17,000 in the third quarter of 1997 (its second full quarter of
operation) which is significantly less than had been expected. Source
Capital Finance began its actual operations in October 1997, prior to
that time, during the organization phase, the employees were carried
on the parent company's payroll.
FINANCIAL CONDITION AND LIQUIDITY
---------------------------------
At September 30, 1997, the Company had approximately $388,000 of cash
and cash equivalents and $257,000 of investment securities. Cash and
cash equivalents increased by approximately $367,000 since December
31, 1996. The Company's primary sources of cash during the first nine
months of 1997 were approximately $12,857,000 from short-term
borrowings, $6,497,000 loan repayments, $598,000 from operations and
$477,000 from the sale of marketable securities. The primary uses of
cash during the first nine months of 1997 were approximately
$14,764,000 of loan originations, $4,687,000 of repayment on short
term borrowings, $398,000 open market repurchase and retirement, of
common stock of the Company and $255,000 payment of dividends.
The Company's line of credit, which matures annually, was renewed and
increased to $25,000,000 on May 1, 1997. The line matures April 30,
1998. At September 30, 1997, the Company had $21,150,000 outstanding
under the line of credit. In addition to the Company's line of
credit, its wholly owned subsidiary, Source Capital Leasing Co., has a
$4,000,000 line of credit to fund its lease portfolio. The leasing
Company had approximately $1,020,000 outstanding under its line. The
Company's line of credit cash provided from loan repayments, existing
cash, and cash equivalents and investment securities will provide
sufficient cash flows for the operating needs of the Company.
<PAGE>
NEW ACCOUNTING PRONOUNCEMENTS
-----------------------------
In June 1997, the Financial Accounting Standards Board (the "FASB")
issued Statement of Financial Accounting Standards ("SFAS") no. 131,
Disclosures about Segments for an Enterprise and Related Information
("SFAS 131"). This Statement will change the way public companies
report information about segments of their business in their annual
financial statements and requires them to report selected segment
information in their quarterly reports issued to shareholders. It
also requires entity-wide disclosures about the products and services
an entity provides, and its major customers. The Statement is
effective for fiscal years beginning after December 15, 1997. The
Company has not yet determined the effect, if any, of SFAS 131 on its
consolidated financial statements.
In June 1997, the FASB issued SFAS No. 130, Reporting Comprehensive
Income. This Statement requires that comprehensive income be reported
in a financial statement that is displayed with the same prominence as
other financial statements. This Statement does not require a
specific format for the financial statement, but requires that an
enterprise display net income as a component of comprehensive income
in the financial statement. Comprehensive income is defined as the
change in equity of a business enterprise arising from non-owner
sources. The classifications of comprehensive income under current
accounting standards include foreign currency items, minimum pension
liability adjustments, and unrealized gains and losses on certain
investments in debt and equity securities. This Statement will affect
the Company's reporting of unrealized gains and losses on investment
securities requiring reporting of this item on the financial statement
that reports comprehensive income. Management has not yet determined
which format it will choose to display comprehensive income. This
Statement is effective for fiscal years beginning after December 15,
1997.
In February 1997, the FASB issued SFAS No. 128, Earnings per Share
("SFAS 128"). SFAS 128 establishes standards for computing and
presenting earnings per share ("EPS") and simplifies the existing
standards. This Standard replaces the presentation of primary EPS
with a presentation of basic EPS. It also requires the dual
presentation of basic and diluted EPS on the face of the income
statement for all entities with complex capital structures and
requires a reconciliation of the numerator and denominator of the
basic EPS computation to the numerator and denominator of the diluted
EPS computation. SFAS 128 is effective for financial statements
issued for periods ending after December 15, 1997, including interim
periods and requires restatement of all prior-period EPS data
presented. The Company does not believe the application of this
standard will have a material effect on the presentation of its basic
and diluted EPS.
<PAGE>
EFFECT OF INFLATION AND CHANGING PRICES
---------------------------------------
Interest rates on the Company's loan portfolio are subject to
inflation as inflationary pressures affect prime interest rate. At
September 30, 1997, interest rates on approximately 93% of the
Company's loan portfolio vary based on various indexes. The remaining
loans have fixed interest rates. Loans with fixed rates and
maturities of less than one year at September 30, 1997 are considered
variable.
<PAGE>
SOURCE CAPITAL CORPORATION
PART II - OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
None
(b) Reports on Form 8-K
None
Items 1, 2, 3, 4 and 5 of Part II are omitted from this report as
inapplicable.
<PAGE>
SOURCE CAPITAL CORPORATION
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
this report has been signed below by the following persons on behalf
of the registrant and in the capacities and on the dates indicated.
SOURCE CAPITAL CORPORATION
(Registrant)
Date: November 13, 1997 By: /s/ D. Michael Jones
----------------------- -----------------------------
D. Michael Jones
President and Chief Executive
Officer
Date: November 13, 1997 By: /s/ Lester L. Clark
----------------------- -----------------------------
Lester L. Clark
Vice President-Secretary/
Treasurer
Principal accounting and
finance officer
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> SEP-30-1997
<CASH> 388333
<SECURITIES> 256941
<RECEIVABLES> 34802011
<ALLOWANCES> 212033
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 229503
<DEPRECIATION> (68395)
<TOTAL-ASSETS> 38846927
<CURRENT-LIABILITIES> 0
<BONDS> 0
0
0
<COMMON> 7073805
<OTHER-SE> 2049047
<TOTAL-LIABILITY-AND-EQUITY> 38846927
<SALES> 3549926
<TOTAL-REVENUES> 3598483
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 1388848
<LOSS-PROVISION> 13000
<INTEREST-EXPENSE> 1387434
<INCOME-PRETAX> 809201
<INCOME-TAX> 280000
<INCOME-CONTINUING> 529201
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 529201
<EPS-PRIMARY> .38
<EPS-DILUTED> .38
</TABLE>
