<PAGE> 1
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 1999
Commission file # 0-28388
CNB CORPORATION
(Exact name of registrant as specified in its charter)
Michigan 38-2662386
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
303 North Main Street, Cheboygan, MI 49721
(Address of principal executive offices, including Zip Code)
(616) 627-7111
(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 ( )
As of May 7, 1999 there were 1,079,580 shares of the issuer's common stock
outstanding.
<PAGE> 2
PART I - FINANCIAL INFORMATION
ITEM 1- FINANCIAL STATEMENTS
CONSOLIDATED BALANCE SHEETS (in thousands)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
March December
31, 1999 31, 1998
ASSETS (unaudited)
<S> <C> <C>
Cash and due from banks $ 5,081 $ 6,580
Federal funds sold 8,600 12,700
-------- ---------
Total cash and cash equivalents 13,681 19,280
Securities available for sale 39,260 24,157
Securities held to maturity(market value of
$ 30,724 in 1999 and $ 36,849 in 1998) 30,401 36,367
Other securities 752 752
Loans, net 108,077 108,987
Premises and equipment, net 3,177 3,196
Other assets 3,954 3,771
-------- ---------
Total assets $199,302 $ 196,510
======== =========
LIABILITIES
Deposits
Non-interest bearing $ 22,572 $ 26,044
Interest-bearing 154,841 148,417
-------- ---------
Total deposits 177,413 174,461
Other liabilities 2,093 2,555
-------- ---------
Total liabilities 179,506 177,016
-------- ---------
SHAREHOLDERS' EQUITY
Common stock, $2.50 par value, 2,000,000
shares authorized, shares outstanding
3/31/99-1,079,580; 12/31/98-1,027,701 2,699 2,569
Additional paid-in capital 11,686 8,597
Retained earnings 5,299 8,099
Unrealized gains on securities
available for sale, net of tax 112 229
-------- ---------
Total shareholders' equity 19,796 19,494
-------- ---------
Total liabilities and shareholders' equity $199,302 $ 196,510
======== =========
</TABLE>
See accompanying notes to consolidated financial statements.
<PAGE> 3
CONSOLIDATED STATEMENTS OF INCOME (in thousands)
- -------------------------------------------------------------------
<TABLE>
<CAPTION>
Year to Date
March 31,
1999 1998
INTEREST INCOME (unaudited)
<S> <C> <C>
Loans, including fees $ 2,395 $ 2,412
Securities
Taxable 736 814
Tax-exempt 150 108
Federal funds sold 169 178
------- -------
Total interest income 3,450 3,512
------- -------
INTEREST EXPENSE ON DEPOSITS 1,506 1,620
------- -------
NET INTEREST INCOME 1,944 1,892
Provision for loan losses 30 25
------- -------
NET INTEREST INCOME AFTER PROVISION
FOR LOAN LOSSES 1,914 1,867
------- -------
NON-INTEREST INCOME
Service charges and fees 191 196
Net realized gains from sale of loans 23 25
Loan servicing fees, net of amortization 43 22
Other income 38 55
------- -------
Total non-interest income 295 298
------- -------
NON-INTEREST EXPENSES
Salary and employee benefits 732 711
Occupancy 156 153
Supplies 51 51
Other expenses 204 162
------- -------
Total non-interest expenses 1,143 1,077
------- -------
INCOME BEFORE INCOME TAXES 1,066 1,088
Income tax expense 277 298
------- -------
NET INCOME $ 789 $ 790
======= =======
Other comprehensive income(loss)
Change in unrealized gains (losses) on
securities available for sale (178) 12
Tax effects 61 (4)
------- -------
Total other comprehensive income(loss) $ 672 $ 798
======= =======
Return on average assets (annualized) 1.59% 1.66%
Return on average equity (annualized) 15.98% 17.05%
Basic earnings per share 0.73 0.73
Diluted earnings per share 0.72 0.73
</TABLE>
All per share statistics have been retroactively adjusted to reflect the 5%
stock dividends on February 20, 1998 and March 1, 1999. See accompanying notes
to consolidated financial statements.
<PAGE> 4
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY(in thousands)
- --------------------------------------------------------------------------------
(unaudited)
<TABLE>
<CAPTION>
Unrealized
Gains(Losses)
On Securities
Available for
Common Capital Retained Sale, Net of
Stock Surplus Earnings Tax Total
----- ------- -------- --- -----
<S> <C> <C> <C> <C> <C>
Balance-January 1, 1998 $ 2,443 $ 6,583 $ 9,066 $ 53 $ 18,145
Net Income, 1998 3,136 3,136
Cash dividends $ 1.86 per share(a) (2,002) (2,002)
5% stock dividend 121 1,968 (2,101) (12)
Shares issued under stock
plan,net 5 51 56
Purchase and retirement of
common stock (5) (5)
Net change in unrealized
gains (losses) on securities
available for sale, net of tax 176 176
----------------------------------------------------------------------
Balance-December 31, 1998 2,569 8,597 8,099 229 19,494
Net Income YTD 1999 789 789
Cash dividends $ .35 per share (378) (378)
5% stock dividend 128 3,064 (3,211) (19)
Shares issued under stock
plan 2 28 30
Purchase and retirement of
common stock (3) (3)
Net change in unrealized
gain (loss) on securities
available for sale (117) (117)
----------------------------------------------------------------------
Balance-March 31, 1999 $ 2,699 $ 11,686 $ 5,299 $ 112 $ 19,796
======================================================================
</TABLE>
(a) All per share statistics have been retroactively adjusted to reflect the 5%
stock dividends on February 20, 1998 and March 1, 1999.
See accompanying notes to consolidated financial statements.
<PAGE> 5
CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Three months ended March 31,
1999 1998
(unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES
<S> <C> <C>
Net Income $ 789 $ 790
Adjustments to reconcile net income to net cash
from operating activities
Depreciation 73 65
Accretion and amortization of investment securities, net 54 7
Provision for loan losses 30 25
Loans originated for sale (4,702) (3,295)
Proceeds from sales of loans originated for sale 4,703 3,296
Gain on sales of loans (23) (25)
(Increase)decrease in other assets (100) (53)
Increase (decrease) in other liabilities 87 134
-------- --------
Total adjustments 122 154
-------- --------
Net cash from operating activities 911 944
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from maturities of securities available for sale 3,164 1,139
Purchase of securities available for sale (18,459) (6,999)
Proceeds from maturites of securities held to maturity 5,926 5,164
Purchase of securities held to maturity - (3,214)
Net (increase)decrease in portfolio loans 880 (1,346)
Premises and equipment expenditures (54) (6)
-------- --------
Net cash from investing activities (8,543) (5,262)
CASH FLOWS FROM FINANCING ACTIVITIES
Net increase in deposits 2,952 663
Dividends paid (946) (831)
Proceeds from exercise of stock options 30 3
Purchases of common stock (3) -
-------- --------
Net cash from financing activities 2,033 (165)
Net change in cash and cash equivalents (5,599) (4,483)
Cash and cash equivalents at beginning of year 19,280 19,304
-------- --------
Cash and cash equivalents at end of period $ 13,681 $ 14,821
======== ========
Cash paid during the period for
Interest $ 1,480 $ 1,593
Income taxes $ 539 $ 597
</TABLE>
See accompanying notes to consolidated financial statements.
<PAGE> 6
NOTES TO FINANCIAL STATEMENTS
Note 1-Basis of Presentation
The consolidated financial statements include the accounts of CNB Corporation
and its wholly-owned subsidiary, Citizens National Bank of Cheboygan, after
elimination of significant inter-company transactions and accounts. The
statements have been prepared by management without audit by independent
certified public accountants. However, these statements reflect all adjustments
(consisting of normal recurring accruals) and disclosures which are, in the
opinion of management, necessary for a fair presentation of the results for the
interim periods presented and should be read in conjuction with the notes to the
financial statements included in the CNB Corporation's Form 10-K for the year
ended December 31, 1998.
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.
Because the results of operations are so closely related to and responsive to
changes in economic conditions, the results for any interim period are not
necessarily indicative of the results that can be expected for the entire year.
Note-2 Earnings Per Share
Basic earnings per share is calculated solely on weighted-average common shares
outstanding. Diluted earnings per share will reflect the potential dilution of
stock options and other common stock equivalents. All prior calculations will be
restated to be comparable to the new methods. The weighted average shares
outstanding in calculating the basic earnings per share was 1,078,999 while the
weighted average dilutive potential shares for the diluted earnings per share
was 1,092,956.
<PAGE> 7
ITEM 2-MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
This discussion provides information about the consolidated financial condition
and results of operations of CNB Corporation and its subsidiary, Citizens
National Bank of Cheboygan ("Bank") for the three month period ending March 31,
1999.
FINANCIAL CONDITION
CNB Corporation's 1999 first quarter earnings were $ 789,000, a slight decrease
over 1998 first quarter results. Earnings per share remained unchanged from 1998
at $ 0.73. The return on assets was 1.59% for the quarter versus 1.66% for the
same period in 1998. The return on equity was 15.98% compared to 17.05% for the
same period last year.
First quarter net interest income for 1999 and 1998 was $ 1.9 million. The net
interest margin decreased to 4.16% in 1999 compared to 4.22% in 1998. This
decrease can be attributable to a lower yield on an increasing volume on
interest-earning assets.
Non-interest income decreased to $ 295,000 from $ 298,000 for 1998, while
non-interest expense remained unchanged at $ 1.1 million for both periods
reported. There was no significant change in the income tax position of the
Company during the first quarter of 1999.
SECURITIES
Securities increased $ 9.1 million or 15.1% since December 31, 1998. The
available for sale portfolio increased to 56.4% up from 39.9% at year-end.
The amortized cost and fair values of securities at March 31, were as follows:
<TABLE>
<CAPTION>
Gross Gross
Amortized Unrealized Unrealized Fair
Available for sale Cost Gains Losses Value
------------------------------------------------------------
<S> <C> <C> <C> <C>
1999
U.S. Government and agency $ 34,894 $ 130 $ (44) $ 34,980
State and municipal 4,197 89 (6) 4,280
-----------------------------------------------------------
$ 39,091 $ 219 $ (50) $ 39,260
===========================================================
1998
U.S. Government and agency $ 22,072 $ 58 $ (9) $ 22,121
State and municipal 2,856 45 2,901
-----------------------------------------------------------
$ 24,928 $ 103 $ (9) $ 25,022
===========================================================
</TABLE>
<PAGE> 8
<TABLE>
<CAPTION>
Gross Gross
Amortized Unrealized Unrealized Fair
Held to maturity Cost Gains Losses Value
------------------------------------------------------------
<S> <C> <C> <C> <C>
1999
U.S. Government and agency $ 9,016 $ 46 $ - $ 9,062
State and municipal 21,385 277 - 21,662
------------------------------------------------------------
$ 30,401 $ 323 $ - $ 30,724
============================================================
1998
U.S. Government and agency $ 24,537 $ 133 $ (13) $ 24,657
State and municipal 16,002 162 (6) 16,158
------------------------------------------------------------
$ 40,539 $ 295 $ (19) $ 40,815
============================================================
</TABLE>
The amortized cost and fair value of securities by contractual maturity at March
31, 1999 are shown below, in thousands of dollars.
<TABLE>
<CAPTION>
Available for Sale Held to Maturity
------------------ ----------------
Amortized Fair Amortized Fair
Cost Value Cost Value
---- ----- ---- -----
<S> <C> <C> <C> <C>
Due in one year or less $ 9,509 $ 9,559 $ 20,208 $ 20,279
Due after one year through five years 28,766 28,831 7,094 7,204
Due after five years through ten years 816 870 1,889 1,994
Due after ten years 1,210 1,247
------------------------------------------------------------
Total $ 39,091 $ 39,260 $ 30,401 $ 30,724
============================================================
</TABLE>
LOANS
Loans at March 31, 1999 decreased $ 910,000 from December 31, 1998. The table
below shows total loans outstanding by type, in thousands of dollars, at March
31, 1999 and December 31, 1998, and their percentage of the total loan
portfolio. All loans are domestic. A quarterly review of loan concentrations at
March 31, 1998 indicates the pattern of loans in the portfolio has not changed.
There is no individual industry with more than a 10% concentration. However, all
tourism related businesses, when combined, total 9.6% of total loans.
<TABLE>
<CAPTION>
March 31, 1999 December 31, 1998
Portfolio loans: Balance % of total Balance % of total
------- ---------- ------- ----------
<S> <C> <C> <C> <C>
Residential real estate $ 68,649 62.58% $ 69,319 62.68%
Consumer 10,240 9.34% 10,229 9.25%
Commercial real estate 19,836 18.08% 20,202 18.27%
Commercial 10,968 10.00% 10,836 9.80%
------------------------------------------------------------
109,693 100.00% 110,586 100.00%
Deferred loan origination fees, net (70) (81)
Allowance for loan losses (1,546) (1,518)
-------------- -------------
$ 108,077 $108,987
============== =============
</TABLE>
<PAGE> 9
ALLOWANCE FOR LOAN LOSSES
An analysis of the allowance for loan losses, in thousands of dollars, for the
three months ended March 31, follows:
<TABLE>
<CAPTION>
1999 1998
---- ----
<S> <C> <C>
Beginning balance $ 1,518 $ 1,442
Provision for loan losses 30 25
Charge-offs (6) (13)
Recoveries 4 4
-------------- -------------
Ending balance $ 1,546 $ 1,458
============== =============
</TABLE>
The Company had no impaired loans for 1999 and 1998.
CREDIT QUALITY
The Company maintains a high level of asset quality as a result of actively
managing delinquencies, nonperforming assets and potential problem loans. The
Company performs an ongoing review of all large credits to watch for any
deterioration in quality. Nonperforming loans are comprised of: (1) loans
accounted for on a nonaccrual basis; (2) loans contractually past due 90 days or
more as to interest or principal payments (but not included in nonaccrual loans
in (1) above); and (3) other loans whose terms have been renegotiated to provide
a reduction or deferral of interest or principal because of a deterioration in
the financial position of the borrower (exclusive of loans in (1) or (2) above).
The aggregate of nonperforming loans is shown in the table below.
<TABLE>
<CAPTION>
March 31, December 31,
1999 1998
---- ----
(In thousands)
<S> <C> <C>
Nonaccrual $ - $ -
Loans past due 90 days or more 291 62
Troubled debt restructurings
--------------- --------------
Total nonperforming loans $ 291 $ 62
=============== ==============
Percent of total loans 0.27% 0.06%
</TABLE>
DEPOSITS
Typically the Company's deposit activity is slow in the first quarter of the
year because seasonal businesses are closed. Deposits at March 31, 1999
increased $ 3.0 million compared to December 31, 1998.
<PAGE> 10
LIQUIDITY AND FUNDS MANAGEMENT
For the first quarter of 1999, the Company's net income combined with net cash
from operating activities provided $ 911,000 in liquidity. Deposits increased
$3.0 million for the first quarter while loans decreased $ 910,000. The Company
maintains a steady schedule of investment securities maturing each month to help
meet with the anticipated liquidity needs. The Company does not anticipate any
significant changes in its seasonal pattern.
FUNDS MANAGEMENT
The following chart shows the Company's interest rate sensitivity as of March
31, 1999 in thousands:
<TABLE>
<CAPTION>
Up to 4 to 12 1 to 5 Over
3 Months Months Years 5 Years Total
-------- ------ ----- ------- -----
<S> <C> <C> <C> <C> <C>
Federal funds sold $ 8,600 $ - $ - $ - $ 8,600
Taxable investment
securities 9,331 16,285 30,721 - 56,337
Non-taxable investment
securities 1,876 4,557 4,352 2,539 13,324
Loans 26,620 23,185 35,137 24,681 109,623
-----------------------------------------------------------------------------
Total rate sensitive
assets $ 46,427 $ 44,027 $ 70,210 $ 27,220 $ 187,884
=================
Interest-bearing demand
deposits $ 1,542 $ 4,166 $ 9,720 $ - $ 15,428
Savings 5,760 5,185 12,100 - 23,045
Money market savings 24,265 7,936 18,517 - 50,718
Time deposits 21,826 25,211 18,613 - 65,650
-----------------------------------------------------------------------------
Total rate sensitive
liabilities 53,393 42,498 58,950 - $ 154,841
=================
Gap $ (6,966) $ 1,529 $ 11,260 $ 27,220
------------------------------------------------------------
Cumulative gap $ (6,966) $ (5,437) $ 5,823 $ 33,043
============================================================
Cumulative ratio 86.95% 103.60%
=============================
</TABLE>
Management reviews the rate and term of any callable securities in the
portfolio. The probability of call is used as the basis for determining a
repricing date. Management believes that the difference between rate sensitive
assets and rate sensitive liabilities ("Gap") overstates true interest
sensitivity. Interest exposure is not as significant as expressed in the above
schedule. Even though the Company has the contractual right to make a change in
certain deposit rates, given its competitive position, management believes that
liabilities do not need to be repriced as soon as rates begin to move.
<PAGE> 11
CAPITAL RESOURCES
The capital ratios of the Company and Bank exceed the regulatory guidelines for
well capitalized institutions. The following table shows the Company's capital
ratios and ratio calculations for the three months ended March 31. Dollars are
shown in millions.
<TABLE>
<CAPTION>
Minimum Required
To Be Well
Minimum Required Capitalized Under
For Capital Prompt Corrective
Actual Adequacy Purposes Action Regulations
------------------------------------------------------------------------------------------
Amount Ratio Amount Ratio Amount Ratio
<S> <C> <C> <C> <C> <C> <C>
1999
Total capital (to risk weighted assets)
Consolidated $ 21.0 19.4% $ 8.6 8.0% $ 10.8 10.0%
Bank 21.0 19.4% 8.6 8.0% 10.8 10.0%
Tier 1 capital (to risk weighted assets)
Consolidated 19.7 18.2% 4.3 4.0% 6.5 6.0%
Bank 19.6 18.2% 4.3 4.0% 6.5 6.0%
Tier 1 capital (to average assets)
Consolidated 19.7 9.9% 7.9 4.0% 9.9 5.0%
Bank 19.6 9.9% 7.9 4.0% 9.9 5.0%
1998
Total capital (to risk weighted assets)
Consolidated $ 19.8 18.8% $ 8.4 8.0% $ 10.5 10.0%
Bank 19.9 18.3% 8.7 8.0% 10.8 10.0%
Tier 1 capital (to risk weighted assets)
Consolidated 18.5 17.6% 4.2 4.0% 6.3 6.0%
Bank 18.5 17.1% 4.3 4.0% 6.5 6.0%
Tier 1 capital (to average assets)
Consolidated 18.5 9.8% 7.6 4.0% 9.5 5.0%
Bank 18.5 9.7% 7.6 4.0% 9.5 5.0%
</TABLE>
YEAR 2000 ISSUE
This global issue poses a threat to businesses everywhere. The problems, which
will evidence themselves in the year 2000, derive from a two digit limitation in
source programming for calendar years. The Company has assembled an internal
technology committee to thoroughly identify and correct any potential problems
in this area well ahead of the year 2000. Our mission is to continue to offer
continuous quality financial services, which meet the needs of the customers and
communities we serve, into the next millennium. We are committed to allocating
sufficient resources, capital and personnel to accomplish our mission. We will
identify Y2K risks to the bank and holding company, develop plans and programs
to lower risk to acceptable levels, develop
<PAGE> 12
backup plans for failure and adhere to regulatory requirements.
ITEM 3-QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
The primary source of market risk for the financial instruments held by the
Corporation is interest rate risk. That is, the risk that an adverse change in
market rates will adversely affect the market value of the instruments.
Generally, the longer the maturity, the higher the interest rate risk exposure.
While maturity information does not necessarily present all aspects of exposure,
it may provide an indication of where risks are prevalent.
All financial institutions assume interest rate risk as an integral part of
normal operations. Managing and measuring interest rate risk is a dynamic,
multi-faceted process that ranges from reducing the exposure of the
Corporation's net interest margin to swings in interest rates, to assuring
sufficient capital and liquidity to support future balance sheet growth. The
Corporation manages interest rate risk through the Asset/Liability Committee.
The Asset/Liability Committee is comprised of bank officers from various
disciplines. The Committee establishes policies and rates which lead to prudent
investment of resources, the effective management of risks associated with
changing interest rates, the maintenance of adequate liquidity, and the earning
of an adequate return on shareholders' equity.
Management believes that there has been no significant changes to the interest
rate sensitivity since the presentation in the December 31, 1998 Management
Discussion and Analysis appearing in the December 31, 1998 10K.
PART II- OTHER INFORMATION
ITEM 4-SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
None
ITEM 6- EXHIBITS AND REPORTS OF FORM 8-K
a.) None
b.) None
<PAGE> 13
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.
CNB Corporation
---------------------------
(Registrant)
Date: 5/11/99 /s/ ROBERT E. CHURCHILL
------------- ---------------------------
Robert E. Churchill
President and Chief
Executive Officer
Date: 5/11/99 /s/ SUSAN A. ENO
------------- ---------------------------
Susan A. Eno
Senior Vice President
<PAGE> 14
INDEX TO EXHIBITS
EXHIBIT NO. DESCRIPTION
- ----------- -----------
27 Financial Data Schedule
<TABLE> <S> <C>
<ARTICLE> 9
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-START> JAN-01-1999
<PERIOD-END> MAR-31-1999
<CASH> 5,081
<INT-BEARING-DEPOSITS> 0
<FED-FUNDS-SOLD> 8,600
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 39,260
<INVESTMENTS-CARRYING> 30,401
<INVESTMENTS-MARKET> 30,724
<LOANS> 109,623
<ALLOWANCE> 1,546
<TOTAL-ASSETS> 199,302
<DEPOSITS> 177,413
<SHORT-TERM> 0
<LIABILITIES-OTHER> 2,093
<LONG-TERM> 0
0
0
<COMMON> 2,699
<OTHER-SE> 17,097
<TOTAL-LIABILITIES-AND-EQUITY> 199,302
<INTEREST-LOAN> 2,395
<INTEREST-INVEST> 1,055
<INTEREST-OTHER> 0
<INTEREST-TOTAL> 3,450
<INTEREST-DEPOSIT> 1,506
<INTEREST-EXPENSE> 1,506
<INTEREST-INCOME-NET> 1,944
<LOAN-LOSSES> 30
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 1,143
<INCOME-PRETAX> 1,066
<INCOME-PRE-EXTRAORDINARY> 1,066
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 789
<EPS-PRIMARY> .73
<EPS-DILUTED> .72
<YIELD-ACTUAL> 4.16
<LOANS-NON> 0
<LOANS-PAST> 291
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 1,518
<CHARGE-OFFS> 6
<RECOVERIES> 4
<ALLOWANCE-CLOSE> 1,546
<ALLOWANCE-DOMESTIC> 421
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 1,125
</TABLE>
