UNITED STATES
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 March 31, 1999
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: 1-12043
FAHNESTOCK VINER HOLDINGS INC.
(Exact name of registrant as specified in its charter)
Ontario, Canada 98-0080034
State or jurisdiction of (I.R.S. Employer
incorporation or organization Identification No.)
P.O. Box 2015, Suite 1110
20 Eglinton Avenue West
Toronto, Ontario, Canada M4R 1K8
(Address of principal executive offices)
(Zip Code)
416-322-1515
(Registrant's telephone number, including area code)
Not applicable
(Former name, address and former fiscal year, if changed since last report)
Indicate by check mark whether 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 [ ]
The number of shares of the Company's Class A non-voting shares
and Class B voting shares (being the only classes of common stock of the
Company), outstanding on April 21, 1999 was 12,241,269 and 99,680
shares, respectively.
FAHNESTOCK VINER HOLDINGS INC.
INDEX
Page No.
PART I FINANCIAL INFORMATION
Item 1. Financial Statements (unaudited)
Consolidated Balance Sheet 2
as of March 31, 1999
and December 31, 1998
Consolidated Statement of Operations 4
for the three months ended
March 31, 1999 and 1998
Consolidated Statement of Cash Flows 5
for the three months ended
March 31, 1999 and 1998
Notes to Consolidated Financial 6
Statements
Item 2. Management's Discussion and Analysis
of Financial Condition and Results
of Operations 7
Item 3. Quantitative and Qualitative Disclosures
About Market Risk 10
PART II OTHER INFORMATION
Item 1. Legal Proceedings 12
Item 2. Changes in Securities and Use of Proceeds 12
Item 3. Defaults Upon Senior Securities 12
Item 4. Submission of Matters to a
Vote of Security-Holders 12
Item 5. Other Information 12
Item 6. Exhibits and Reports on Form 8-K 12
SIGNATURES 13
FAHNESTOCK VINER HOLDINGS INC.
CONSOLIDATED BALANCE SHEET
unaudited
March 31, December 31,
1999 1998
Expressed in thousands of U.S. dollars
ASSETS
Current assets
Cash and short-term deposits $10,270 $11,501
Restricted deposits 2,302 2,312
Securities purchased under agreement to resell 6,191 12,174
Deposits with clearing organizations 4,950 7,072
Receivable from brokers and clearing organizations 227,868 167,018
Receivable from customers 397,781 334,664
Securities owned, at market value 110,549 88,579
Demand notes receivable 30 30
Other 18,716 26,912
778,657 650,262
Other assets
Stock exchange seats (approximate market value
$7,096; $4,798 in 1998) 1,498 1,507
Fixed assets, net of accumulated depreciation of
$9,580; $8,896 in 1998 9,041 9,286
Goodwill, at amortized cost 5,592 5,708
16,131 16,501
$794,788 $666,763
The accompanying notes are an integral part of these condensed
financial statements.
FAHNESTOCK VINER HOLDINGS INC.
CONSOLIDATED BALANCE SHEET
unaudited
March 31, December 31,
1999 1998
Expressed in thousands of U.S. dollars
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Drafts payable $11,824 $22,734
Bank call loans 21,515 42,217
Securities sold under agreement to repurchase 22,400 664
Payable to brokers and clearing organizations 375,987 235,029
Payable to customers 107,154 115,878
Securities sold, but not yet purchased,
at market value 39,526 41,104
Accounts payable and other liabilities 39,802 40,119
Income taxes payable 4,620 2,665
Subordinated loans payable 30 30
622,858 500,440
Shareholders' equity
Share capital
12,398,319 Class A non-voting shares
(1998 - 12,241,269 shares) 36,637 36,392
99,680 Class B voting shares 133 133
36,770 36,525
Contributed capital 3,105 2,196
Retained earnings 132,055 127,602
171,930 166,323
$794,788 $666,763
The accompanying notes are an integral part of these condensed
financial statements.
FAHNESTOCK VINER HOLDINGS INC.
CONSOLIDATED STATEMENT OF OPERATIONS
FOR THE THREE MONTHS ENDED MARCH 31,
unaudited
1999 1998
Expressed in thousands of U.S. dollars, except per share amounts
REVENUE:
Commissions $29,273 $29,401
Principal transactions, net 14,803 19,229
Interest 9,196 10,983
Underwriting fees 2,916 2,317
Advisory fees 6,499 5,762
Other 1,264 1,507
63,951 69,199
EXPENSES:
Compensation and related expenses 33,994 36,393
Clearing and exchange fees 2,180 2,118
Communications 5,328 5,264
Occupancy costs 3,007 3,040
Interest 4,635 6,217
Other 4,815 3,978
53,959 57,010
Profit before income taxes 9,992 12,189
Income tax provision 4,647 5,156
NET PROFIT FOR PERIOD $5,345 $7,033
Profit per share (Note 2)
- basic $0.43 $0.56
- diluted $0.42 $0.54
The accompanying notes are an integral part of these condensed
financial statements.
FAHNESTOCK VINER HOLDINGS
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE THREE MONTHS ENDED MARCH 31,
unaudited
1999 1998
Expressed in thousands of U.S. dollars
Cash flows from operating activities:
Net profit for the period $5,345 $7,033
Adjustments to reconcile net profit to net cash
provided by (used in) operating activities:
Non-cash items included in net profit:
Depreciation and amortization 809 658
Decrease (increase) in operating assets,
Restricted deposits 10 (182)
Securities purchased under agreements to resell 5,983 -
Deposits with clearing organizations 2,122 1,431
Receivable from brokers and clearing
organizations (60,850) 10,285
Receivable from customers (63,117) (1,747)
Securities owned (21,970) (18,977)
Other assets 8,196 12,150
Increase (decrease) in operating liabilities,
Drafts payable (10,910) 1,428
Securities sold under agreement to repurchase 21,736 -
Payable to brokers and clearing organizations 140,958 (19,225)
Payable to customers (8,724) (3,733)
Securities sold, but not yet purchased (1,578) 18,976
Accounts payable and other liabilities (317) (872)
Income taxes payable 1,955 (10,661)
Cash provided by (used in) operating activities 19,648 (3,436)
Cash flows from investing activities:
Purchase of fixed assets (439) (629)
Cash (used in) investing activities (439) (629)
Cash flows from financing activities:
Cash dividends paid on Class A non-voting and
Class B shares (892) (889)
Issuance of Class A non-voting shares 3,771 1,516
Repurchase of Class A non-voting shares
for cancellation (3,526) (35)
Tax benefit from employee stock options exercised 909 -
Increase (decrease) in bank call loans (20,702) 8,011
Cash (used in) provided by financing activities (20,440) 8,603
Net (decrease) increase in cash and short-term deposits (1,231) 4,538
Cash and short-term deposits, beginning of period 11,501 10,784
Cash and short-term deposits, end of period $10,270 $15,322
The accompanying notes are an integral part of these condensed
financial statements.
FAHNESTOCK VINER HOLDINGS INC.
Notes to Consolidated Financial Statements (unaudited)
1. Basis of Presentation
The consolidated financial statements include the accounts of
Fahnestock Viner Holdings Inc. ("FVH") and its subsidiaries
(together, the "Company"). The principal subsidiary of FVH is
Fahnestock & Co. Inc. ("Fahnestock"), a registered broker-dealer in
securities. All material intercompany accounts have been eliminated
in consolidation.
The Company's financial statements have been prepared in
accordance with the rules and regulations of the Securities and
Exchange Commission ("SEC") with respect to Form 10-Q and do
not include all of the information and footnotes required under
accounting principles generally accepted in the United States for
complete financial statements. These financial statements should be
read in conjunction with the Company's most recent annual report
on Form 10-K for the year ended December 31, 1998 which should
be consulted for a summary of the significant accounting policies
utilized by the Company.
All adjustments which, in the opinion of management, are
normal and recurring and necessary for a fair presentation of the
results of operations, financial position and cash flows for the
interim periods presented have been made. The nature of the
Company's business is such that the results of operations for the
interim periods are not necessarily indicative of the results to be
expected for a full year.
These consolidated financial statements are presented in U.S.
dollars.
2. Profit per share
Profit per share was computed by dividing net profit by the
weighted average number of Class A non-voting and Class B shares
outstanding. Diluted profit per share includes the weighted average
Class A non-voting and Class B shares outstanding and the effects of
Class A non-voting share options using the treasury stock method.
Profit per share has been calculated as follows:
Three months ended March 31,
1999 1998
Basic weighted average number of
shares outstanding 12,511,282 12,670,362
Net effect, treasury stock method 140,134 377,068
Diluted common shares 12,651,416 13,047,430
Net profit for the period $5,345,000 $7,033,000
Basic profit per share $0.43 $0.56
Diluted profit per share $0.42 $0.54
3. Net Capital Requirements
The Company's principal broker-dealer subsidiary,
Fahnestock, is subject to the Uniform Net Capital Rule (the "Rule")
of the SEC and the net capital rule of the New York Stock Exchange
(the "NYSE"). Fahnestock has elected to use the alternative method
permitted by the Rule which requires that it maintains minimum net
capital equal to 2% of aggregate debit items arising from customer
transactions, as defined. The NYSE may prohibit a member firm
from expanding its business or paying dividends if resulting net
capital would be less than 5% of aggregate debit items.
At March 31, 1999, the net capital of Fahnestock as
calculated under the Rule was $110,479,000 or 23% of Fahnestock's
aggregate debit items. This was $101,007,000 in excess of the
minimum required net capital.
ITEM 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations
The securities industry is directly affected by general
economic and market conditions, including fluctuations in volume
and price levels of securities and changes in interest rates, all of
which have an impact on commissions and firm trading and
investment income as well as on liquidity. Substantial fluctuations
can occur in revenues and net income due to these and other factors.
Results of Operations
Unaudited net profit of U.S.$5,345,000 or $0.43 per share for
the first quarter of 1999 compared to U.S.$7,033,000 or $0.56 per
share for the first quarter of 1998, a decrease of 24% in net profit.
Revenue for the first quarter of 1999 was U.S.$63,951,000 compared
to U.S.$69,199,000 in the first quarter of 1998, a decrease of 8%.
Market conditions remained strong in the first quarter of
1999 with the Dow Jones industrial average reaching the 10,000
mark for the first time due to low interest rates, expectations of a
strong economy, and substantial cash inflows. Revenue for the first
quarter of 1999 trailed the previous year due to reduced revenue
from trading activities. Revenue from retail activities remained
strong and revenue from investment banking and advisory fees grew
by 17% due to increased activity in the quarter, however, this was not
sufficient to offset the reduced trading revenue. Over-the-counter trading
was profitable for the first quarter of 1999, but at a significantly reduced
level compared to the same quarter of 1998. As the quarter progressed,
trading revenues strengthened as the Company adjusted to the more volatile
markets. Reduced inventories were carried throughout the quarter.
Commission income and to a large extent, income from
principal transactions, depend on market volume levels. Commission
revenue remained stable compared to the first quarter of 1998. Net
revenue from principal transactions declined 23% compared to the
first quarter of 1998. Investment banking revenues and advisory fees
both showed significant improvement in the first quarter of 1999
compared to the same quarter of 1998 due to increased underwriting
and private placement activity and an increase in assets under
management. Net interest revenue (interest revenue less interest
expense) decreased slightly in the first quarter of 1999 compared to
the same period in 1998 as a result of lower customer balances.
Expenses, other than interest, decreased by 3% in the first quarter of
1999 compared to the same quarter of 1998. First of Michigan
Corporation ("First of Michigan"), which was acquired in July 1997,
has been operated as a division of Fahnestock since the beginning of
1999. Expenses in the first quarter of 1999 were lower than in the
comparable quarter of 1998 because the first two quarters of 1998
included unexpected costs relating to the First of Michigan
operations.
During the first quarter of 1999, the Company purchased six
branch offices from Fifth Third/ The Ohio Company. All of these
branches are located in the State of Michigan and will operate as part
of the First of Michigan division. The First of Michigan division
continues to regain market share as it continues to add to its sales
force. As previously reported, the operations of First of Michigan
Corporation were reorganized as the First of Michigan division of
Fahnestock & Co. Inc. in the beginning of 1999.
Liquidity and Capital Resources
Total assets at March 31, 1999 of $794,788,000 increased
by approximately 19% from $666,763,000 at December 31, 1998
due primarily to higher customer and broker/dealer balances. Liquid
assets accounted for 98% of total assets, consistent with year end
levels. The Company satisfies its need for funds from its own cash
resources, internally-generated funds, subordinated borrowings,
collateralized borrowings consisting primarily of bank loans, and
uncommitted lines of credit. The amount of Fahnestock's bank
borrowings fluctuates in response to changes in the level of the
Company's securities inventories and customer margin debt as well
as changes in stock loan balances. Fahnestock has arrangements with
banks for borrowings on a fully collateralized basis. At March 31,
1999, $21,515,000 of such borrowings were outstanding.
Management believes that funds from operations, combined
with Fahnestock's capital base and available credit facilities, are
sufficient for the Company's liquidity needs in the foreseeable future.
Through March 31, 1999, the Company has purchased and
cancelled a total of 651,200 Class A non-voting shares at an average
cost of $14.61 (252,700 shares at an average price of $13.95 per
share were purchased during the first quarter of 1999) through the
facilities of the New York and the Toronto Stock Exchanges
pursuant to a Normal Course Issuer Bid that is open from July 3,
1998 to July 2, 1999. Under the outstanding Normal Course Issuer
Bid, the Company may purchase up to 790,000 Class A non-voting
shares. The Company believes that the Class A non-voting shares
may be undervalued from time to time and that the repurchase of
such shares is an appropriate use of corporate funds.
On February 26, 1999, the Company paid cash dividends of
U.S.$0.07 per Class A non-voting and Class B share totaling
$892,000 from available cash on hand.
On April 21, 1999, the board of directors declared a regular
quarterly cash dividend of $0.07 per Class A non-voting and Class B
share payable on May 21, 1999 to shareholders of record on May 7,
1999.
Year 2000 Disclosure
The Year 2000 problem ("Year 2000" or "Y2K") is the result
of computer systems having been written using two digits, rather
than four, to define the year. Any computer, computer program,
equipment or product that has date-sensitive software or embedded
chips, not corrected, could produce inaccurate or unpredictable
results commencing on January 1, 2000.
The Company is a broker/dealer in securities and as such
relies heavily on computer technology to conduct its operations. The
Company relies on both internal systems and on third party vendors.
As at the date hereof, all vendors of software and hardware and all
vendors of non-critical systems (elevators, vault, building security,
etc.) have been contacted and inquiries about their Y2K readiness
have been made. Certain non-critical systems have been determined
to be non-Y2K compliant and have been or are being replaced with
available Y2K-compliant systems. Approximately 99% of all
vendors (100% of mission-critical vendors) have responded and have
indicated that they already are or will be compliant. In terms of the
Company's internal systems, all programs have been assessed for
Year 2000 compliance. Substantially all of the compilation work
has been completed and a portion has been internally tested on a
parallel basis with current production, using live files. Full testing
and Year 2000 compliance is expected to be completed by June 30,
1999. The Company is actively participating in a number of industry
committees including the Security Industry Association Year 2000
Committee. The Company validated its connections to various test
sites in July 1998 and has successfully participated in various
industry-wide Year 2000 tests which have taken place in March and
April 1999. Files interfacing with SIAC and DTC have already been
adapted and are compliant. To date there have been no material
exceptions in tests that have been completed.
The cost of readying the Company for Year 2000 has been
estimated to be approximately $200,000 - $250,000 for fiscal 1999.
This includes the costs associated with the personnel dedicated to the
project and the cost of new hardware. A budget of $50,000 has been
approved for fiscal 2000 to cover contingencies. This range of costs
does not include normal ongoing costs for computer hardware or
software revisions that would be required in the normal course of
business. All funding for the Y2K compliance effort is from
available cash on hand.
The Company has adopted a comprehensive contingency
plan with respect to the Y2K problem, and is reviewing this plan on
an ongoing basis to assess its continued applicability.
Despite the Company's planning and preparation for Year
2000, there can be no assurance that partial or total systems
interruptions will not occur and that the costs necessary to update
hardware and software would not have a material adverse impact on
the Company's business, financial condition, statement of operations
and business prospects.
Factors Affecting "Forward-Looking Statements"
This report on Form 10-Q contains "forward-looking statements"
within the meaning of Section 27A of the Securities Act of 1933, as
amended ( the "Act"), and Section 21E of the
Exchange Act. These forward-looking statements relate to
anticipated financial performance, future revenues or earnings,
business prospects and anticipated market performance of the
Company, including statements related to its acquisition of First of
Michigan. The Private Securities Litigation Reform Act of 1995
provides a safe harbor for forward-looking statements. In order to
comply with the terms of the safe harbor, the Company cautions
readers that a variety of factors could cause the Company's actual
results to differ materially from the anticipated results or other
expectations expressed in the Company's forward-looking
statements. These risks and uncertainties, many of which are beyond
the Company's control, include, but are not limited to: (i) transaction
volume in the securities markets, (ii) the volatility of the securities
markets, (iii) fluctuations in interest rates, (iv) changes in regulatory
requirements which could affect the cost and manner of doing
business, (v) fluctuations in currency rates, (vi) general economic
conditions, both domestic and international, (vii) changes in the rate
of inflation and the related impact on the securities markets, (viii)
competition from existing financial institutions and other new
participants in the securities markets, (ix) legal developments
affecting the litigation experience of the securities industry, and (x)
changes in federal and state tax laws which could affect the
popularity of products sold by the Company. There can be no
assurance that the Company has correctly or completely identified
and assessed all of the factors affecting the Company's business. The
Company does not undertake any obligation to publicly update or
revise any forward-looking statements.
ITEM 3. Quantitative and Qualitative Disclosures About Market
Risk
Risk Management
The Company's principal business activities by their nature
involve significant market and credit risks. The Company's
effectiveness in managing these risks is critical to its
success and stability.
As part of its normal business operations, the Company
engages in the trading of both fixed income and equity securities in
both a proprietary and market-making capacity. The Company
makes markets in over-the-counter equities in order to facilitate
order flow and accommodate its institutional and retail customers.
The Company also makes markets in municipal bonds, mortgage-
backed securities, government bonds and high yield bonds.
Market Risk
Market risk generally means the risk of loss that may result
from the potential change in the value of a financial instrument as a
result of fluctuations in interest and currency exchange rates and in
equity and commodity prices. Market risk is inherent in all types of
financial instruments, including both derivatives and non-
derivatives. The Company's exposure to market risk arises from its
role as a financial intermediary for its customers' transactions and
from its proprietary trading and arbitrage activities.
In addition, the Company's activities expose it to operational
risk, legal risk and funding risk. Operational risk generally means the
risk of loss resulting from improper processing of transactions or
deficiencies in the Company's operating systems or internal controls.
With respect to its trading activities, the Company has procedures
designed to ensure that all transactions are accurately recorded and
properly reflected on the Company's books on a timely basis. With
respect to client activities, the Company operates a system of internal
controls designed to ensure that transactions and other account
activity (new account solicitation, transaction authorization,
transaction processing, billing and collection) are properly approved,
processed, recorded and reconciled. Legal risk generally includes the
risk of non-compliance with legal and regulatory requirements and
the risk that a counterparty's obligations are unenforceable. The
Company is subject to extensive regulation in the various
jurisdictions in which it conducts its business. Through its legal
advisors and its compliance department, the Company has
established routines to ensure compliance with regulatory capital
requirements, sales and trading practices, new products, use and
safekeeping of customer securities and funds, granting of credit,
collection activities, and record keeping. The Company has
procedures designed to assess and monitor counterparty risk.
Value-at-Risk
Value-at-risk is a statistical measure of the potential loss in
the fair value of a portfolio due to adverse movements in underlying
risk factors. In response to the SEC's market risk disclosure
requirements, the Company has performed a value-at-risk analysis
of its trading financial instruments and derivatives. The value -at-risk
calculation uses standard statistical techniques to measure the
potential loss in fair value based upon a one-day holding period and
a 95% confidence level. The calculation is based upon a variance-
covariance methodology, which assumes a normal distribution of
changes in portfolio value. The forecasts of variances and co-
variances used to construct the model, for the market factors relevant
to the portfolio, were generated from historical data. Although value-
at-risk models are sophisticated tools, their use can be limited as
historical data is not always an accurate predictor of future
conditions. The Company attempts to manage its market exposure
using other methods, including trading authorization limits and
concentration limits.
At March 31, 1999 and December 31, 1998, the Company's
value-at-risk for each component of market risk was as follows:
(000's omitted)
1999 1998
Interest rate risk $423 $298
Equity price risk 254 759
Diversification benefit (395) (575)
Total $282 $482
The potential future loss presented by the total value-at-risk
generally falls within predetermined levels of loss that should not be
material to the Company's results of operations, financial condition
or cash flows. The changes in the value-at-risk amounts reported in
1999 from those reported in 1998 reflect changes in the size and
composition of the Company's trading portfolio; more particularly
an increase in the size of the Company's debt portfolio and a
decrease in the Company's equity portfolio at March 31, 1999
compared to December 31, 1998.
The value-at-risk estimate has limitations that should be
considered in evaluating the Company's potential future losses based
on the year-end portfolio positions. Recent market conditions,
including increased volatility, may result in statistical relationships
that result in higher value-at-risk than would be estimated from the
same portfolio under different market conditions, or the converse
may be true. Critical risk management strategy involves the active
management of portfolio levels to reduce market risk. The
Company's market risk exposure is continuously monitored as the
portfolio risks and market conditions change.
PART II
ITEM 1. Legal Proceedings
There are no material legal proceedings to which the
Company or its subsidiaries are parties or to which any of
their respective properties are subject. The Company's
subsidiaries are parties to legal proceedings incidental to
their respective businesses. The materiality of legal matters
on the Company's future operating results depends on the
level of future results of operations as well as the timing and
ultimate outcome of such legal matters.
ITEM 2. Changes in Securities and Use of Proceeds
Not applicable
ITEM 3. Defaults Upon Senior Securities
Not applicable
ITEM 4. Submission of Matters to a Vote of Security-Holders
None
ITEM 5. Other Information
None
ITEM 6. Exhibits and Reports on Form 8-K
(a) Exhibits - Financial Data Schedule included as Exhibit 27
(b) Reports on Form 8-K - None
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 hereunto duly authorized, in the City of Toronto,
Ontario, Canada on the 21st day of April, 1999.
FAHNESTOCK VINER HOLDINGS INC.
By:__/S/ A.G.Lowenthal____
A.G.Lowenthal, Chairman
(Principal Financial Officer)
By:__/S/ E.K.Roberts____
E.K.Roberts, President
(Duly Authorized Officer)
<TABLE> <S> <C>
<ARTICLE> BD
<LEGEND>
EXHIBIT 27
Financial Data Schedule for the first quarter ended March 31, 1999
required pursuant to Item 601(c) of Regulation S-K and Regulation S-B
and Rule 401 of Regulation S-T.
</LEGEND>
<CIK> 0000791963
<NAME> FAHNESTOCK VINER HOLDINGS INC.
<MULTIPLIER> 1
<CURRENCY> 1
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-START> JAN-01-1999
<PERIOD-END> MAR-31-1999
<EXCHANGE-RATE> 1
<CASH> 10,270,000
<RECEIVABLES>429,783,000
<SECURITIES-RESALE> 6,191,000
<SECURITIES-BORROWED> 195,896,000
<INSTRUMENTS-OWNED> 110,549,000
<PP&E> 9,041,000
<TOTAL-ASSETS> 794,788,000
<SHORT-TERM> 21,515,000
<PAYABLES> 169,851,000
<REPOS-SOLD> 22,400,000
<SECURITIES-LOANED> 369,566,000
<INSTRUMENTS-SOLD> 39,526,000
<LONG-TERM> 0
<COMMON> 33,770,000
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0
<OTHER-SE> 135,135,000
<TOTAL-LIABILITY-AND-EQUITY> 794,788,000
<TRADING-REVENUE> 14,803,000
<INTEREST-DIVIDENDS> 9,196,000
<COMMISSIONS> 29,273,000
<INVESTMENT-BANKING-REVENUES> 2,916,000
<FEE-REVENUE> 6,499,000
<INTEREST-EXPENSE> 4,635,000
<COMPENSATION> 33,994,000
<INCOME-PRETAX> 9,992,000
<INCOME-PRE-EXTRAORDINARY> 9,992,000
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 5,345,000
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