Page 1 of 16
Form 10-QSB
U. S. Securities and Exchange Commission
Washington, DC 20549
[X] Quarterly Report Under Section 13 or 15(d) of the Securities Exchange Act
of 1934
For the 6-month period ended June 30, 1998.
[ ] Transition Report Under Section 13 or 15(d) of the Securities Exchange Act
of 1934
For the transition period from ______________ to ______________
Commission File No. 000-18445
Benchmark Bankshares, Inc.
(Name of Small Business Issuer in its Charter)
Virginia 54-1380808
(State or Other Jurisdiction of (IRS Employer ID No.)
Incorporation or Organization)
100 South Broad Street
Kenbridge, Virginia 23944
(Address of Principal Executive Offices)
Issuer's Telephone Number: (804)676-8444
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.
(1) Yes [X] No [ ] (2) Yes [X] No [ ]
State the number of shares outstanding of each of the issuer's classes
of common equity, as of the latest applicable date:
2,972,902.537
<PAGE>
Page 2 of 16
Form 10-QSB
Benchmark Bankshares, Inc.
Part I - Table of Contents
June 30, 1998
Part I Financial Information
Item 1 Consolidated Balance Sheet
Consolidated Statement of Income
Condensed Consolidated Statement of Cash Flows
Notes to Consolidated Financial Statements
Item 2 Management's Discussion and Analysis of Financial Condition
and Results of Operations
Part II Other Information
<PAGE>
Page 3 of 16
Form 10-QSB
Benchmark Bankshares, Inc.
Consolidated Balance Sheet
(Unaudited) (Audited)
June 30, December 31,
1998 1997
---- ----
Assets
Cash and due from banks $ 5,119,971 $ 4,595,094
Securities
Federal Agency obligations 10,720,147 9,007,268
State and municipal obligations 9,272,541 8,915,548
Other securities 137,000 137,000
Federal funds sold 14,374,000 5,353,000
Loans 128,920,812 127,110,962
Less
Unearned interest and fees (285,201) (297,097)
Loan loss reserve (1,494,341) (1,391,424)
------------- -------------
Net Loans 127,141,270 125,422,441
Premises and equipment - net 3,164,195 2,997,866
Accrued interest receivable 1,398,803 1,236,384
Deferred income taxes 314,026 266,401
Other real estate 531,234 533,234
Other assets 701,452 270,659
------------- -------------
Total Assets $172,874,639 $158,734,895
============= =============
<PAGE>
Page 4 of 16
Form 10-QSB
Benchmark Bankshares, Inc.
Consolidated Balance Sheet
(Unaudited) (Audited)
June 30, December 31,
1998 1997
---- ----
Liabilities and Stockholders' Equity
Deposits
Demand (noninterest-bearing) $ 16,073,354 $ 13,859,115
NOW accounts 18,814,975 15,707,189
Money market accounts 6,909,693 6,564,365
Savings 9,370,741 8,320,696
Time, $100,000 and over 14,052,703 12,370,092
Other time 88,346,350 83,920,648
------------- -------------
Total Deposits 153,567,816 140,742,105
Accrued interest payable 730,706 708,315
Accrued income tax payable - 49,867
Dividends payable 447,630 440,824
Other liabilities 183,155 141,512
------------- -------------
Total Liabilities 154,929,307 142,082,623
Stockholders' Equity
Common stock, par value $.21 per share,
authorized 4,000,000 shares; issued and
outstanding 06-30-98, 2,972,902.537, issued
and outstanding 12-31-97, 2,942,811.048 626,682 617,990
Capital surplus 4,099,190 3,667,557
Retained earnings 13,057,131 12,189,180
Accumulated other comprehensive income,
net of tax 162,329 177,545
------------- -------------
Total Stockholders' Equity 17,945,332 16,652,272
------------- -------------
Total Liabilities and
Stockholders' Equity $172,874,639 $158,734,895
============= ============
Note: The balance sheet at December 31, 1997 has been derived from the
audited financial statements at that date.
See notes to consolidated financial statements.
<PAGE>
Page 5 of 16
Form 10-QSB
Benchmark Bankshares, Inc.
Consolidated Statement of Income
(Unaudited)
Six Months Ended June 30,
1998 1997
---- ----
Interest Income
Interest and fees on loans $6,179,302 $6,009,540
Interest on U. S. Government obligations 337,173 262,275
Interest on State and municipal obligations 231,809 258,041
Interest on Federal funds sold 240,092 169,021
Interest on other securities 2,610 2,610
----------- -----------
Total Interest Income 6,990,986 6,701,487
Interest Expense
Interest on deposits 3,357,053 3,207,044
----------- -----------
Net Interest Income 3,633,933 3,494,443
Provision for Loan Losses 147,950 146,195
----------- -----------
Net Interest Income after
Provision 3,485,983 3,348,248
Noninterest Income
Service charges, commissions, and fees
on deposits 209,338 192,894
Other operating income 67,481 85,903
(Losses) on sale of securities (436) (1,234)
----------- -----------
Total Noninterest Income 276,383 277,563
Noninterest Expense
Salaries and wages 993,618 948,228
Employee benefits 221,379 178,426
Occupancy expenses 99,947 103,606
Furniture and equipment expense 74,019 72,633
Other operating expenses 447,557 441,139
----------- ------------
Total Noninterest Expense 1,836,520 1,744,032
----------- ------------
Net Income before Taxes 1,925,846 1,881,779
Income Taxes 609,386 579,836
----------- -----------
Net Income 1,316,460 1,301,943
Other Comprehensive Income, Net of Tax
Unrealized holding gains arising during
period 162,329 62,172
----------- -----------
Comprehensive Income $1,478,789 $1,364,115
=========== ===========
Net Income per Share $ 0.44 $ 0.45 (1)
=========== ===========
(1) Adjusted for a 2 for 1 stock split on October 2, 1997.
See notes to consolidated financial statements.
<PAGE>
Page 6 of 16
Form 10-QSB
Benchmark Bankshares, Inc.
Consolidated Statement of Income
(Unaudited)
Three Months Ended June 30,
1998 1997
---- ----
Interest Income
Interest and fees on loans $3,091,056 $3,031,502
Interest on U. S. Government obligations 172,874 130,896
Interest on State and municipal obligations 114,648 122,757
Interest on Federal funds sold 155,766 109,952
Interest on other securities 2,610 2,610
----------- -----------
Total Interest Income 3,536,954 3,397,717
Interest Expense
Interest on deposits 1,709,439 1,628,074
----------- -----------
Net Interest Income 1,827,515 1,769,643
Provision for Loan Losses 70,492 87,389
----------- -----------
Net Interest Income after
Provision 1,757,023 1,682,254
Noninterest Income
Service charges, commissions, and fees on
Deposits 108,655 98,172
Other operating income 30,709 37,082
(Losses) on sale of securities (222) (662)
----------- -----------
Total Noninterest Income 139,142 134,592
Noninterest Expense
Salaries and wages 489,972 480,135
Employee benefits 99,397 69,862
Occupancy expenses 50,650 49,157
Furniture and equipment expense 42,812 37,312
Other operating expenses 245,436 235,875
----------- -----------
Total Noninterest Expense 928,267 872,341
----------- -----------
Net Income before Taxes 967,898 944,505
Income Taxes 305,541 292,529
----------- -----------
Net Income 662,357 651,976
Other Comprehensive Income, Net of Tax
Unrealized holding gains arising during
period 14,034 101,512
----------- -----------
Comprehensive Income $ 676,391 $ 753,488
=========== ===========
Net Income per Share $ 0.22 $ 0.23 (1)
=========== ===========
(1) Adjusted for a 2 for 1 stock split on October 2, 1997.
See notes to consolidated financial statements.
<PAGE>
Page 7 of 16
Form 10-QSB
Benchmark Bankshares, Inc.
Condensed Consolidated Statement of Cash Flows
(Unaudited)
Six Months Ended June 30,
1998 1997
---- ----
Cash Provided by Operations $ 944,958 $1,255,472
Cash Provided by Financing Activities
Net increase in demand deposits and interest-
bearing transaction accounts 5,322,025 2,040,780
Net increase in savings and money market
deposits 1,395,373 850,359
Net increase in certificates of deposit 6,108,313 2,307,388
Net sale of stock 440,325 180,433
Dividends paid (440,824) (391,510)
------------ -----------
Total Cash Provided by Financing
Activities 12,825,212 4,987,450
Cash Used in Investing Activities
Purchase of securities (7,184,085) (161,860)
Sale of securities 91,368 823,870
Maturity of securities 5,000,000 1,415,903
Increase in loans net of collections (1,866,779) (4,291,568)
Purchase of premises and equipment (264,797) (54,328)
------------ -----------
Total Cash (Used) by Investing
Activities (4,224,293) (2,267,983)
------------ -----------
Increase in Cash and Cash Equivalents $ 9,545,877 $3,974,939
============ ===========
See notes to consolidated financial statements.
<PAGE>
Page 8 of 16
Form 10-QSB
Benchmark Bankshares, Inc.
Condensed Consolidated Statement of Cash Flows
(Unaudited)
Three Months Ended June 30,
1998 1997
---- ----
Cash Provided by Operations $ 37,143 $ 192,928
Cash Provided by Financing Activities
Net increase in demand deposits and interest-
bearing transaction accounts 2,642,967 887,315
Net increase (decrease) in savings and money
market deposits 161,969 (365,509)
Net increase in certificates of deposit 2,695,157 251,726
Net sale of stock 136,096 (347)
------------ -----------
Total Cash Provided by Financing
Activities 5,636,189 773,185
Cash Used in Investing Activities
Purchase of securities (3,644,085) (161,860)
Sale of securities 56,199 -
Maturity of securities 2,750,251 1,003,323
Increase in loans net of collections (614,684) (2,059,073)
Purchase of premises and equipment (151,093) (4,488)
------------ -----------
Total Cash (Used) by Investing
Activities (1,603,412) (1,222,098)
------------ -----------
Increase (Decrease) in Cash and Cash
Equivalents $ 4,069,920 $ (255,985)
============ ===========
See notes to consolidated financial statements.
<PAGE>
Page 9 of 16
Form 10-QSB
Benchmark Bankshares, Inc.
Notes to Consolidated Financial Statements
June 30, 1998
1. Basis of Presentation
The accompanying consolidated financial statements and related
notes of Benchmark Bankshares, Inc. and its subsidiary, Benchmark
Community Bank, were prepared by management, which has the primary
responsibility for the integrity of the financial information. The
statements have been prepared in conformity with generally accepted
accounting principles appropriate in the circumstances and include
amounts that are based on management's best estimates and judgments.
In meeting its responsibilities for the accuracy of its
financial statements, management relies on the Company's internal
accounting controls. The system provides reasonable assurances that
assets are safeguarded and transactions are recorded to permit the
preparation of appropriate financial information.
The interim period financial information included herein is
unaudited; however, such information reflects all adjustments
(consisting solely of normal recurring adjustments), which are, in the
opinion of management, necessary to a fair presentation of financial
position, results of operation, and changes in financial position for
the interim periods herein reported.
2. Significant Accounting Policies and Practices
The accounting policies and practices of Benchmark Bankshares,
Inc. conform to generally accepted accounting principles and general
practice within the banking industry. Certain of the more significant
policies and practices follow:
(a) The consolidated financial statements of Benchmark Bankshares,
Inc. and its wholly owned subsidiary, Benchmark Community
Bank, include the accounts of both companies. All material
inter-company balances and transactions have been eliminated
in consolidation.
(b) Investment Securities. Pursuant to guidelines established in
FAS 115, the Company has elected to classify a portion of its
current portfolio as securities available-for-sale. This
category refers to investments that are not actively traded,
but are not anticipated by management to be held-to-maturity.
Typically, these types of investments will be utilized by
management to meet short-term asset/liability management
needs. The remainder of the portfolio is classified as
held-to-maturity. This category refers to investments that are
anticipated by management to be held until they mature.
For purposes of financial statement reporting, securities
classified as available-for-sale are to be reported at fair
market value (net of any tax effect) as of the date of the
statements; however, unrealized holding gains or losses are to
be excluded from earnings and reported as a net amount in a
separate component of shareholders' equity until realized.
Securities classified as held-to-maturity are recorded at
cost. The resulting book value ignores the impact of current
market trends.
<PAGE>
Page 10 of 16
(c) Loans. Interest on loans is computed by methods which
generally result in level rates of return on principal amounts
outstanding (simple interest). Unearned interest on certain
installment loans is recognized as income using the rule of
78's method, which materially approximates the effective
interest method. Loan fees and related costs are recognized as
income and expense in the year the fees are charged and costs
incurred.
(d) Allowance for Loan Losses. The allowance for loan losses is
increased by provisions charged to expense and decreased by
loan losses net of recoveries. The provision for loan losses
is based on the Bank's loan loss experience and management's
detailed review of the loan portfolio which considers economic
conditions, prior loan loss experience, and other factors
affecting the collectivity of loans. Accrual of interest is
discontinued on loans past due 90 days or more when collateral
is inadequate to cover principal and interest or, immediately,
if management believes, after considering economic and
business conditions and collection efforts, that the
borrower's financial condition is such that collection is
doubtful.
(e) Premises and Equipment. Premises and equipment are stated at
cost less accumulated depreciation. Depreciation is computed
generally by the straight line basis over the estimated useful
lives of the assets. Additions to premises and equipment and
major betterments and replacements are added to the accounts
at cost. Maintenance and repairs and minor replacements are
expensed as incurred. Gains and losses on dispositions are
reflected in current earnings.
(f) Depreciation. For financial reporting, property and equipment
are depreciated using the straight line method; for income tax
reporting, depreciation is computed using statutory
accelerated methods. Leasehold improvements are amortized on
the straight line method over the estimated useful lives of
the improvements. Income taxes in the accompanying financial
statements reflect the depreciation method used for financial
reporting and, accordingly, include a provision for the
deferred income tax effect of depreciation which will be
recognized in different periods for income tax reporting.
(g) Earnings Per Share
Earnings per share were computed by using the average shares
outstanding for each period presented. The average shares of
outstanding stock for the first six months of 1998 and 1997
were 2,962,420.814 and 2,920,148.508 shares, respectively.
The Company has a stock option plan for its directors,
officers, and employees. As of June 30, 1998, there were
128,716 share options that had been granted but were
unexercised. Based on current trading values of the stock, the
stock options are not considered materially dilutive;
therefore, the Company's earnings per share are reported as a
simple capital structure.
<PAGE>
Page 11 of 16
(h) The table below reflects the components of the Net Deferred Tax
Asset account as of June 30, 1998:
Deferred tax assets resulting from loan
loss reserves $456,092
Deferred tax liabilities resulting from
Depreciation (93,658)
Unrealized securities losses (83,624)
Deferred compensation 35,216
---------
Net Deferred Tax Asset $314,026
=========
<PAGE>
Page 12 of 16
Item 2 Management's Discussion and Analysis of Financial Condition
and Results of Operations
Six Months Ending June 30: 1998 Versus 1997
Earnings Summary
Net income of $1,316,460 for the first six months of
1998 increased $14,517 or 1.12% as compared to net income of
$1,301,943 earned during the first six months of 1997.
Earnings per share of $.44 as of June 30, 1998 decreased $.01
over the June 30, 1997 level of $.45. The annualized return on
average assets of 1.59% decreased 5.92% while the annualized
return on average equity of 15.22% decreased 12.83% when
comparing first six months 1998 results with those of first
six months 1997.
The increase in earnings resulted from continued
growth in loans; however, the rate of return declined as
deposit growth out paced loan growth resulting in the Bank
holding more highly liquid investments which earn a lesser
rate of income than loans.
Interest Income and Interest Expense
Total interest income of $6,990,986 for the first six
months of 1998 increased $289,499 or 4.32% over interest
income of $6,701,487 recorded during the first six months of
1997. The major area of increase was in interest and fees on
loans, which was a direct result from the growth of the loan
portfolio. In addition, interest from investments was up as
deposit growth exceeded loan growth.
Total interest expense in the first six months of
1998 increased to a level of $3,357,053. This amounted to an
increase of $150,009 or 4.68% over the level reached during
the first six months of 1997. This increase in interest
expense resulted from deposit growth, as well as the payment
of higher interest rates to meet market competition.
Provision for Loan Losses
While the Bank's loan loss experience ratio remains
low, management continues to set aside increasing provisions
to the loan loss reserve. During the first six months of 1998,
the Bank increased the loan loss reserve by $102,917 to a
level of $1,494,341 or 1.16% of the outstanding loan balance.
At year end 1997, the reserve level amounted to
$1,391,424 or 1.10% of the outstanding loan balance net of
unearned interest.
Non-Performing Loans
Non-performing loans consist of loans accounted for
on a non-accrual basis and loans which are contractually past
due 90 days or more as to interest and/or principal payments
regardless of the amount of collateral held. As of June 30,
1998, the Bank had $649,221 in non-performing loans or .5% of
the loan portfolio. The amount of non-secured loans in this
category amounted to $9,678.
<PAGE>
Page 13 of 16
Noninterest Income and Noninterest Expense
Noninterest income of $276,383 decreased $1,180 or
.43% for the first six months of 1998 as compared to the level
of $277,563 reached during the first six months of 1997. The
decrease resulted from a decrease in other operating income as
premiums collected on life insurance for loans declined
38.78%.
Noninterest expense of $1,836,520 increased $92,488
or 5.30% for the first six months of 1998 as compared to the
level of $1,744,032 reached during the first six months of
1997. The change resulted from increases in salaries and
benefits due to the expanding staff needs.
Off-Balance-Sheet Instruments/Credit Concentrations
The Company is a party to financial instruments with
off-balance-sheet risk in the normal course of business to
meet the financing needs of its customers. Unless noted
otherwise, the Bank does not require collateral or other
security to support these financial instruments. Standby
letters of credit are conditional commitments issued by the
Bank to guarantee the performance of a customer to a third
party. Those guarantees are primarily issued to facilitate the
transaction of business between these parties where the exact
financial amount of the transaction is unknown, but a limit
can be projected. The credit risk involved in issuing letters
of credit is essentially the same as that involved in
extending loan facilities to customers. There is a fee charged
for this service.
As of June 30, 1998, the Bank had $2,307,102 outstanding
letters of credit. These instruments are based on the
financial strength of the customer and the existing
relationship between the Bank and the customer. Following
are the maturities of these instruments as of June 30:
1999 $ 524,313
2001 1,782,789
Liquidity
As of the end of the first six months of 1998,
$50,073,775 or 38.85% of gross loans will mature or are
subject to repricing within one year. These loans are funded
in part by $14,052,703 in certificates of deposit of $100,000
or more of which $6,242,437 mature in one year or less.
Currently, the Bank has a maturity average ratio for
the next twelve months of 78.04% when comparing current assets
and current liabilities.
At year end 1997, $49,319,432 or 39.58% of gross
loans were scheduled to mature or were subject to repricing
within one year and $12,505,238 in certificates of deposit
were scheduled to mature during 1998.
Capital Adequacy
Total shareholder equity was $17,945,332 or 10.38% of
total assets as of June 30, 1998. This compared to $16,652,272
or 10.49% of total assets as of December 31, 1997.
Primary capital (shareholders' equity plus loan loss
reserves) of $19,439,673 represents 11.24% of total assets as
of June 30, 1998 as compared to $18,043,696 or 11.37% of total
assets as of December 31, 1997.
<PAGE>
Page 14 of 16
The increase in the equity position resulted from an
increase in earnings in the first six months of 1998 versus
the first six months of 1997 and an increase in capital
through the sale of common stock from the dividend
reinvestment program and exercised employee stock options.
Three Months Ending June 30: 1998 Versus 1997
The same operating policies and philosophies discussed in the
six month discussion were prevalent throughout the second quarter and
the operating results were predictably similar.
Earnings Summary
Net income of $662,357 for the second quarter of 1998
increased $10,381 or 1.59% as compared to the $651,976 earned during
the second quarter of 1997. Earnings per share of $.22 for the second
quarter of 1998 decreased $.01 or 4.35% when compared to the
corresponding period in 1997. The annualized return on average assets
was 1.56% and the return on average equity was 14.92% for the second
quarter of 1998. This compares to a return on average assets of 1.70%
and a return on average equity of 17.70% for the same period in 1997.
The increased earnings is an indication of the growth
experienced during the second quarter. The decline in the return on
average equity reflects the growth in equity through the dividend
reinvestment plan and the exercising of stock option grants at a faster
rate than the increase in income.
Interest Income and Interest Expense
Total interest income of $3,536,954 for the second quarter of
1998 increased $139,237 or 4.10% from the total interest income of
$3,397,717 for the corresponding quarter in 1997. The increase resulted
primarily from growth in the investment portfolio. Interest on
investments amounted to $79,683. This represented an increase of
$445,898 or 21.76% over the corresponding period in 1997.
Interest expense for the second quarter of 1998 increased
$81,365 or 5.00% over the same period in 1997. The increase in interest
expense reflected the current economic trend of increased interest
rates as well as steady deposit growth.
Provision for Loan Losses
During the second quarter, the demand for loans was strong and
the level of quality loans continued to increase. During the period,
the Bank provided an additional $45,690 to the reserve through its
provision for loan losses.
Loans and Deposits
During the second quarter of 1998, net loans grew $523,961.
This growth is at a somewhat slower growth rate than previously
experienced. The reduction in growth has resulted from aggressive
competition from lenders in the trade area.
Deposits increased by $5,500,093 for the three month period
ending June 30, 1998. Management feels that the growth in deposits has
resulted from an increase in the size of the trade area as well as
further penetration into existing market areas through the community
bank operating concept.
<PAGE>
Page 15 of 16
Form 10-QSB
Benchmark Bankshares, Inc.
June 30, 1998
Part II Other Information
Item 1 Legal Proceedings
None
Item 2 Changes in Securities
None
Item 3 Defaults Upon Senior Securities
None
Item 4 Submission of Matters to a Vote of Security Holders
None
Item 5 Other Information
None
Item 6 Report on Form 8-K
No reports on Form 8-K have been filed
during the quarter ended June 30, 1998.
<PAGE>
Page 16 of 16
Form 10-QSB
Benchmark Bankshares, Inc.
June 30, 1998
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.
Benchmark Bankshares, Inc.
(Registrant)
Date: July 22, 1998 Ben L. Watson, III
------------------
President and CEO
Date: July 22, 1998 Janice C. Whitlow
-----------------
Cashier and Treasurer
<TABLE> <S> <C>
<ARTICLE> 9
<LEGEND>
(Replace this text with the legend)
</LEGEND>
<MULTIPLIER> 1
<CURRENCY> $
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> JUN-30-1998
<EXCHANGE-RATE> 1
<CASH> 5,119,971
<INT-BEARING-DEPOSITS> 0
<FED-FUNDS-SOLD> 14,374,000
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 15,763,002
<INVESTMENTS-CARRYING> 4,229,686
<INVESTMENTS-MARKET> 4,233,364
<LOANS> 128,920,812
<ALLOWANCE> 1,494,341
<TOTAL-ASSETS> 172,874,639
<DEPOSITS> 153,567,816
<SHORT-TERM> 0
<LIABILITIES-OTHER> 1,361,491
<LONG-TERM> 0
0
0
<COMMON> 626,682
<OTHER-SE> 17,318,650
<TOTAL-LIABILITIES-AND-EQUITY> 172,874,639
<INTEREST-LOAN> 6,179,302
<INTEREST-INVEST> 811,681
<INTEREST-OTHER> 0
<INTEREST-TOTAL> 811,681
<INTEREST-DEPOSIT> 3,357,053
<INTEREST-EXPENSE> 3,357,053
<INTEREST-INCOME-NET> 3,633,933
<LOAN-LOSSES> 147,950
<SECURITIES-GAINS> (436)
<EXPENSE-OTHER> 1,836,520
<INCOME-PRETAX> 1,925,846
<INCOME-PRE-EXTRAORDINARY> 1,925,846
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,316,460
<EPS-PRIMARY> .44
<EPS-DILUTED> .44
<YIELD-ACTUAL> 4.22
<LOANS-NON> 273,399
<LOANS-PAST> 375,822
<LOANS-TROUBLED> 1,053,592
<LOANS-PROBLEM> 9,187,985
<ALLOWANCE-OPEN> 1,391,424
<CHARGE-OFFS> 117,362
<RECOVERIES> 72,329
<ALLOWANCE-CLOSE> 1,494,341
<ALLOWANCE-DOMESTIC> 1,494,341
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 1,404,341
</TABLE>
