<PAGE> 1
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, 1995
[ ] 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 0-15404
FINANCIAL INSTITUTIONS INSURANCE GROUP, LTD.
(Exact Name of Registrant as Specified in its Charter)
DELAWARE 36-3468795
(State or other jurisdiction of (I.R.S. Employer
Incorporation or Organization) Identification No.)
300 DELAWARE AVENUE, SUITE 1704
WILMINGTON, DE
(Address of Principal Executive Offices) 19801
Registrant's telephone number, including Zip Code
area code (302) 427-5800
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 [ ]
Number of shares of common stock outstanding:
<TABLE>
<S> <C>
NUMBER OUTSTANDING
CLASS AS OF MARCH 31,1995
----- -------------------
$1.00 par value common 2,186,704
</TABLE>
<PAGE> 2
FINANCIAL INSTITUTIONS INSURANCE GROUP, LTD.
CONDENSED CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
AS OF AS OF
MARCH 31, DECEMBER 31,
1995 1994
--------- -----------
ASSETS (unaudited)
INVESTMENTS
<S> <C> <C>
Fixed maturities held for sale at market (Amortized cost: 1995 - $55,980,022;
1994 - $53,909,188)............................................................................. $ 55,170,971 $ 52,283,318
Non-redeemable preferred equities at market (Amortized cost: 1995 - $5,580,118;
1994 - $6,189,589).............................................................................. 5,381,132 5,785,356
Common Stock at market (Cost: 1995 - $3,570,283; 1994 - $2,578,971)............................... 3,668,938 2,493,450
Short-term investments............................................................................ 4,782,426 4,673,778
------------ ------------
Total investments............................................................................. 69,003,467 65,235,902
OTHER ASSETS
Cash and equivalents.............................................................................. 2,327,987 3,251,227
Restricted cash................................................................................... 2,855,822 2,831,922
Premiums receivable............................................................................... 2,813,832 2,934,056
Reinsurance recoverable on paid losses............................................................ 141,404 160,587
Reinsurance recoverable on unpaid losses.......................................................... 6,228,220 6,424,110
Accrued investment income......................................................................... 737,480 594,748
Deferred federal income taxes..................................................................... 1,998,870 2,330,000
Other assets...................................................................................... 1,208,275 1,185,357
------------ ------------
Total other assets............................................................................ 18,311,890 19,712,007
------------ ------------
Total assets.................................................................................. $ 87,315,357 $ 84,947,909
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES
Reserves for unpaid losses and loss adjustment expenses........................................... $ 33,048,655 $ 32,967,809
Unearned premium reserves......................................................................... 4,434,057 4,233,747
Accrued liabilities............................................................................... 4,670,648 4,516,220
Funds withheld from reinsurers.................................................................... 2,855,822 2,831,922
Excess of acquired net assets over cost........................................................... 1,500,590 1,614,555
------------ ------------
Total liabilities............................................................................. 46,509,772 46,164,253
STOCKHOLDERS' EQUITY
Preferred stock, $1,000 par value, 75,000 shares authorized; no shares issued
and outstanding................................................................................. $ - $ -
Common stock, $1 par value, 6,000,000 shares authorized; 2,923,404 shares issued.................. 2,923,404 2,923,404
Additional paid-in capital........................................................................ 29,515,662 29,534,302
Treasury stock, at cost (1995 - 736,700; shares; 1994 - 746,700 shares)........................... (6,909,663) (7,016,554)
Unrealized investment losses net of taxes......................................................... (634,259) (1,562,822)
Retained earnings................................................................................. 15,910,441 14,905,326
------------ ------------
Total stockholders' equity.................................................................... 40,805,585 38,783,656
------------ ------------
Total liabilities and stockholders' equity.................................................... $ 87,315,357 $ 84,947,909
============ ============
</TABLE>
See the accompanying notes to the condensed consolidated financial statements.
2
<PAGE> 3
FINANCIAL INSTITUTIONS INSURANCE GROUP, LTD.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
<TABLE>
<CAPTION>
THREE MONTHS THREE MONTHS
ENDED ENDED
MARCH 31, MARCH 31,
1995 1994
------------ ------------
<S> <C> <C>
REVENUE
Premiums earned................................................................... $ 2,305,776 $ 1,851,688
Net investment income............................................................. 1,170,565 773,015
Net realized gains on investments................................................. 83,962 331,346
Other income...................................................................... 175,142 174,279
------------ ------------
Total revenue................................................................... 3,735,445 3,130,328
LOSSES AND EXPENSES
Losses and loss adjustment expenses............................................... 822,186 1,063,998
Commissions expenses.............................................................. 588,228 357,138
Other operating and management expenses........................................... 850,955 739,878
------------ ------------
Total losses and expenses....................................................... 2,261,370 2,161,014
------------ ------------
Income before income taxes........................................................ 1,474,075 969,314
Provision for income taxes........................................................ 304,656 159,538
------------ ------------
Net income........................................................................ $ 1,169,419 $ 809,776
============ ============
Net income per common share....................................................... $ 0.50 $ 0.35
============ ============
Weighted average number of shares outstanding for the entire period............. 2,334,418 2,282,910
============ ============
</TABLE>
See the accompanying notes to the condensed consolidated financial statements
3
<PAGE> 4
FINANCIAL INSTITUTIONS INSURANCE GROUP, LTD.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
<TABLE>
<CAPTION>
THREE MONTHS THREE MONTHS
ENDED ENDED
MARCH 31, MARCH 31,
1995 1994
------------ -------------
<S> <C> <C>
CASH PROVIDED BY OPERATING ACTIVITIES............................................. $ 1,744,062 $ 3,243,561
INVESTING ACTIVITIES
Net purchases of short term investments....................................... (108,648) (500,158)
Purchases of fixed maturities................................................. (4,814,230) (10,150,663)
Dispositions of fixed maturities.............................................. 2,926,157 14,821,942
Net (purchases) dispositions of preferred equities............................ 459,484 (954,293)
Net purchases of common stock................................................. (991,312) (2,255,075)
------------ -------------
NET CASH (USED) PROVIDED BY INVESTING ACTIVITIES (2,528,549) 961,753
FINANCING ACTIVITIES
Stock options exercised....................................................... 25,250 -
Payments of cash dividends.................................................... (164,003) (140,927)
------------ -------------
NET CASH USED BY FINANCING ACTIVITIES (138,753) (140,927)
------------ -------------
INCREASE (DECREASE) IN CASH....................................................... $ (923,240) $ 4,064,387
============ =============
</TABLE>
See the accompanying notes to the condensed consolidated financial statements
4
<PAGE> 5
FINANCIAL INSTITUTIONS INSURANCE GROUP, LTD.
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
MARCH 31,1995
(unaudited)
A. BASIS OF PRESENTATION
The condensed consolidated financial statements included herein have
been prepared by the Registrant without audit, pursuant to the rules
and regulations of the Securities and Exchange Commission and reflect
all adjustments, consisting of normal recurring accruals, which are,
in the opinion of management, necessary for a fair presentation of the
results of operations for the periods shown. These statements are
condensed and do not include all information required by generally
accepted accounting principles to be included in a full set of
financial statements. It is suggested that these financial statements
be read in conjunction with the consolidated financial statements at,
and for the year ended, December 31, 1994 and notes thereto, included
in the Registrant's annual report as of that date. Certain prior year
amounts have been reclassified to conform with the 1995 presentation.
B. DIVIDENDS PAID
The Registrant has paid the following common share dividends in 1995
to outstanding stockholders of record:
<TABLE>
<CAPTION>
Payment Stockholder Dividend Paid
Date Record Date Per Common Share
-------------------------------------------------------------------
<S> <C> <C>
February 23, 1995 January 26, 1995 $0.075
</TABLE>
In addition, the Registrant has declared the following common share
dividend in 1995 to outstanding stockholders of record:
<TABLE>
<CAPTION>
Payment Stockholder Dividend Paid
Date Record Date Per Common Share
-------------------------------------------------------------------
<S> <C> <C>
May 25, 1995 April 20, 1995 $0.075
</TABLE>
5
<PAGE> 6
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATION
LIQUIDITY AND CAPITAL RESOURCES
GENERAL BUSINESS
Financial Institutions Insurance Group, Ltd. (the "Registrant") is an insurance
holding company which, through its subsidiaries, underwrites insurance and
reinsurance. The principal lines of business include professional liability,
directors' and officers' liability, fidelity, property catastrophe reinsurance
and other lines of property and casualty reinsurance.
The Registrant conducts its business by operating an insurance company and
managing insurance and reinsurance assumptions through two underwriting
agencies.
The First Reinsurance Company of Hartford ("First Re") is the largest
subsidiary. Through affiliated non-insurance subsidiaries, First Re provides
insurance coverage and has entered into reinsurance treaties whereby companies
cede a portion of their premiums, commissions and related incurred losses to
First Re.
The principal underwriting activity of the group is managed by a wholly-owned
subsidiary, Oakley Underwriting Agency, Inc. ("Oakley"). Formed in 1993,
Oakley underwrites directors' and officers' liability insurance and
professional liability insurance principally on behalf of First Re and Virginia
Surety Company, Inc. ("VSC"). VSC is an unaffiliated insurance company that
maintains an underwriting contract with Oakley.
The profitability of the property-casualty business is dependent on competitive
influences, the efficiency and costs of operations, investment results between
the time premiums are collected and losses are paid, the level of ultimate
losses paid, and the ability to estimate each of those factors in setting
premium rates. Investment results are dependent on the selection of investment
vehicles, the ability to project ultimate loss payments, and the timing of
those loss payments. Ultimate loss payments are dependent on the types of
coverages provided, results of litigation, the geographic areas of the country
covered and the quality of underwriting.
LIQUIDITY
General convention in the insurance industry has established an informal
guideline ratio of premiums written to capital that is deemed appropriate.
Typically this ratio provides that premiums be no greater than three times the
capital and surplus of the Registrant. The Registrant has maintained a ratio
of less than $.40 of premium written for each $1.00 of its capital and surplus
since its inception. Additionally, the Registrant must file certain reports
with various regulatory agencies. These reports measure the liquidity, capital
resources and profitability of the Registrant to insurance industry standards.
Based on these reports, for the 1994 year, the liquidity and capital resources
of the Registrant exceed the operating standards.
6
<PAGE> 7
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATION (CONT.)
LIQUIDITY AND CAPITAL RESOURCES (CONTINUED)
The Registrant's fixed investment portfolio has been structured such that the
average maturity of the portfolio does not exceed three years. The length of
time needed to settle claims from reinsured policies is influenced by the type
of coverage involved and the complexity of the individual loss occurrence.
Management believes that it has positioned its investment portfolio to ensure
that it can meet its obligations without adverse deviation from its current
investment objectives. It is also believed that the Registrant's current
investment policies permit it to continue to take advantage of favorable
changes that might occur in the investment marketplace.
On December 30, 1993, the Registrant adopted SFAS 115 and classified all of its
fixed maturity investments as held for sale and carries them at market value,
because the Registrant will likely sell such investments prior to maturity.
Non-redeemable preferred equity securities and common stocks are also carried
at market value. Short-term investments are carried at the lower of amortized
cost or market value.
The net tax effected unrealized loss of $1,562,822 at December 31,1994 was
reduced to a net tax effected unrealized loss of $634,259 as of March 31, 1995,
due to an improvement in the stock and bond market. Management does not plan
to liquidate investments to fund operations or pursue financing activities but
will continue to manage the portfolio seeking the maximum total return while
keeping the duration and credit profile at approximately the same historical
levels.
Following this policy, the Registrant realized approximately $84,000 of capital
gains from the held for sale portfolio in the first three months of 1995 by
selling securities and reinvesting the proceeds.
The Registrant and its investment advisors believe that, given the current
uncertainties in the fixed income market, it was appropriate to realize these
gains. This activity did not affect the liquidity or quality of the portfolio.
7
<PAGE> 8
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATION (CONT.)
LIQUIDITY AND CAPITAL RESOURCES (CONTINUED)
The following table outlines the respective reserve components and their
balances as of March 31, 1994 and at quarterly intervals through the period to
March 31, 1995.
DIRECT AND ASSUMED
<TABLE>
<CAPTION>
Reserves on
Reported IBNR
Date Reserves % Claims % Reserves %
<S> <C> <C> <C> <C> <C> <C>
3/31/94 $33,736,233 100% $13,939,792 41% $19,796,441 59%
6/30/94 $33,029,457 100% $13,099,987 40% $19,929,470 60%
9/30/94 $33,250,399 100% $13,117,104 40% $20,133,295 60%
12/31/94 $32,967,809 100% $12,814,155 38% $20,153,654 62%
3/31/95 $33,048,655 100% $13,551,763 41% $19,496,892 59%
</TABLE>
CEDED
<TABLE>
<CAPTION>
Reserves on
Reported IBNR
Date Reserves % Claims % Reserves %
<S> <C> <C> <C> <C> <C> <C>
3/31/94 $6,286,636 100% $4,403,636 70% $1,883,000 30%
6/30/94 $6,124,728 100% $4,378,321 71% $1,749,407 29%
9/30/94 $5,983,568 100% $4,367,754 73% $1,615,814 27%
12/31/94 $6,424,110 100% $4,006,925 62% $2,417,185 38%
3/31/95 $6,228,220 100% $4,282,499 69% $1,945,721 31%
</TABLE>
NET
<TABLE>
<CAPTION>
Reserves on
Reported IBNR
Date Reserves % Claims % Reserves %
<S> <C> <C> <C> <C> <C> <C>
3/31/94 $27,449,597 100% $9,536,156 35% $17,913,441 65%
6/30/94 $26,904,729 100% $8,724,666 32% $18,180,063 68%
9/30/94 $27,266,831 100% $8,749,350 32% $18,517,481 68%
12/31/94 $26,543,699 100% $8,807,230 33% $17,736,469 67%
3/31/95 $26,820,435 100% $9,269,264 35% $17,551,171 65%
</TABLE>
The Registrant regularly monitors the relative proportions of its gross
reserves to ensure that they are adequate. In the event such reserves are
deemed to be either excessive or insufficient, adjustments are made at the time
of such determination.
8
<PAGE> 9
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATION (CONT.)
LIQUIDITY AND CAPITAL RESOURCES (CONTINUED)
For income tax purposes, the liability for unpaid losses and loss adjustment
expenses is discounted to values less than those reported for accounting
purposes. The effect of the discounting is to increase the amount of taxable
income and current income tax liability. The tax based adjustments are more
fully explained in Notes A and D to the consolidated financial statements of
the Registrant in the Registrant's Form 10-K for the year ended December 31,
1994.
Management considers the Registrant's current capitalization, investments and
net reserves to be adequate to meet the Registrant's operating needs and to
support the level of reinsurance premiums currently being assumed.
Payments of future cash dividends are reviewed and voted on at regularly
scheduled Board of Directors' meetings of the Registrant and its subsidiaries.
In declaring the most recent dividend, the Registrant considered its current
financial condition, with special attention to current income, retained
earnings and its Stockholder Dividend Policy. These decisions, further, are
based upon the subsidiaries' performances, taking into account regulatory
restrictions on payment of dividends by such subsidiaries.
The Registrant's significant cash flow in the first three months of 1995
reflects an increase in net investments of $2,528,549 as compared to a net
decrease of $961,753 as of March 31, 1994. Operating activities contributed
$1,744,062 of cash balances in 1995 as compared to $3,243,561 in 1994. This
reduction was primarily due to funding of loss payments and federal tax
payments in 1995 that were not required in 1994.
As of April 1, 1995, First Re increased its net participation in the lower
layer of the Oakley treaties and eliminated its participations in the two upper
layers. The net exposure per risk will increase by less than 1% from $495,000
to $500,000 but will be concentrated in the first layer of coverage rather than
spread among the policy limits of up to $5,000,000. The premium writings will
increase from approximately 44% to approximately 70%, due to this change in
participation with a proportional increase in the commissions expenses and
estimated incurred losses.
During the first quarter of 1995, the Registrant made a formal offer to
acquire, in a cash transaction, AmerInst Insurance Group, Inc., a publicly held
reinsurer of accountants professional liability insurance, at a discount to its
book value. The acquisition price is approximately $10.9 million. The
Registrant is currently awaiting a response from the Board of AmerInst.
The Registrant is unaware of any other trends or uncertainties that have had,
or that the Registrant reasonably expects will have, a material effect on its
liquidity, capital resources or operations. Management feels that the
Registrant's liquidity and capital resources are adequate to meet future needs.
9
<PAGE> 10
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATION (CONT.)
RESULTS OF OPERATIONS
Earnings per share in the three months ended March 31, 1995 and 1994, amounted
to $0.50 and $0.35 respectively. This represents an increase of 42.9%.
Earnings per share are calculated on a diluted basis.
Net income for the three months ended March 31, 1995 is 44.4% higher than
for the same period in 1994 ($1,169,419 vs. $809,776). The 1995 three month
income increase is primarily due to increased earned premiums, an
increase in net investment income and favorable reserve developments on certain
prior period claims.
PREMIUMS EARNED
The premiums earned as of March 31, 1995 increased 24.5% ($2,305,776 vs.
$1,851,688) over 1994. This increase is primarily due to the increase in
earnings from business produced by the Registrant's Oakley subsidiary, of
approximately $695,000 ($1,851,000 vs. $1,156,000) for 1994, which is a 60.1%
increase and reflects the final quarter of the second full year of Oakley
operations. The premium growth reflects an increase in retention from
approximately 37.0% to 44.0% of the premium which occurred in the second
quarter of 1994. This increase in retention, coupled with an increase in
insurance premiums written, comprised the premium increase. Oakley has
increased its year-to-year gross insurance premiums earned approximately 25.0%
as it continues to establish itself in the marketplace and as it adds new
insureds to the book of business that was acquired from VSC in April of 1993.
The first quarter of 1994 benefited from $540,000 of premium revenue from the
financial institutions insurance program. The expiring premiums related to
this run-off program were fully earned by the end of 1994, with almost all of
the earnings being reflected in the first quarter.
NET INVESTMENT INCOME AND REALIZED INVESTMENT GAINS
Net investment income in the three months ended March 31, 1995 increased 51.4%
($1,170,565, vs. $773,015). This was due to higher available interest rates
during the first three months of 1995 and a change from tax advantaged into
higher yielding taxable securities during the third and fourth quarters of
1994.
Net realized gains on investments in the three months ended March 31, 1995
decreased 74.7%, from $331,346 to $83,962 for 1994 and 1995 respectively.
In 1994 the Registrant realized capital gains as part of a strategy to capture
a tax benefit that was scheduled to expire at December 31, 1994. This goal was
achieved principally in the first quarter of 1994.
Market conditions did not present an opportunity to realize similar gains
within the Registrant's investment policy guidelines in 1995. Future realized
gains will be dependent on portfolio positions and market conditions.
Consistent with its investment guidelines, the Registrant will continue to
invest for the highest total return possible and maintain its portfolio's
current liquidity and credit characteristics.
10
<PAGE> 11
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATION (CONT.)
LOSSES AND LOSS ADJUSTMENT EXPENSES
The three months ended March 31, 1995 had a decrease of $241,812 or 22.7%.
Favorable re-estimations of ultimate incurred losses on claims related to 1993
and prior financial institution claims totaling approximately $728,000 vs.
$422,000 for 1994 were reflected in the three month results. The 1994 quarter
additionally reflected a loss estimate of approximately $300,000 for the
Northridge, California earthquake. The 1995 quarter did not have a comparable
major catastrophe claim but did reflect a proportional increase in loss
reserves that corresponded to the increased premium revenue.
COMMISSIONS EXPENSES
The three months ended March 31, 1995 had a commission expense increase of
approximately $231,000 or 64.7% from the comparable period in 1994. The 1995
increase in commission expenses is proportional to the increased premiums
written.
OTHER OPERATING EXPENSES
For the three months ended March 31, 1995, other operating expenses increased
from $739,878 to $850,955 or 15.0% for the comparable period in 1994. The 1995
first quarter expenses reflected modestly higher levels of expenses principally
in the professional area that were incurred in establishing procedures and
controls for expanding operations.
PROVISION FOR INCOME TAXES
The three months ended March 31, 1995 compared to the previous quarter had an
increase in income taxes from $159,538 to $304,656 or 91.0%. The effective tax
rate increased to 20.66% from 16.45% due to a higher proportion of underwriting
profits being fully taxed and a lower proportion of tax advantaged investment
income. The effective tax rate increase accounted for approximately 41% of the
increased tax, and the balance related to the increased pre-tax income.
REGULATORY ENVIRONMENT
The reinsurance (and insurance) industry is being scrutinized by the Executive
and Legislative branches of government as well as regulatory agencies. Items
presently being given attention are individual state regulatory issues (i.e.
solvency) and federal regulation of the reinsurance and insurance industry. It
is not possible to predict at this time the impact that these initiatives will
have on the Registrant's business.
The Registrant, in association with its reinsured companies, has responded to,
and will continue to respond to these regulatory challenges. Without an
appropriate response, actions of regulatory authorities could adversely affect
the operations of the Registrant.
The Registrant will continue to monitor these developments and respond as
necessary to the changing environment.
11
<PAGE> 12
FINANCIAL INSTITUTIONS INSURANCE GROUP, LTD.
PART II
OTHER INFORMATION
ITEMS 1-3. Have been omitted as they are either not applicable
or result in a negative answer.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
Not Applicable
ITEM 5. OTHER MATTERS
The Registrant continues to seek acquisitions that will
complement its current business. During the first
quarter of 1995, the Registrant increased its cash
offer to acquire AmerInst Insurance Group, Inc.
("AmerInst"), and its wholly-owned subsidiary, AmerInst
Insurance Company from $27 to $32.40 per share. AmerInst
is a publicly-held insurance holding company with
reported assets of approximately $49,000,000. Its
subsidiary, AmerInst Insurance Company, is an Illinois-
chartered reinsurer of accountants' professional
liability insurance. The Registrant has not yet received
a response from the AmerInst Board of Directors, and is
unable at this time to predict whether the acquisition
will proceed.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) The following Exhibits have been included as
part of this report:
None.
(b) The Registrant has filed no current reports
on Form 8-K for the quarter ended 3/31/95.
12
<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.
FINANCIAL INSTITUTIONS INSURANCE GROUP, LTD.
(Registrant)
May 10, 1995 John A. Dore
----------------------------------------------
John A. Dore
(President and Chief Executive Officer, duly
authorized to sign this report in such capacities
and on behalf of the Registrant.)
May 10, 1995 Lonnie L. Steffen
----------------------------------------------
Lonnie L. Steffen
(Chief Financial Officer, Executive Vice
President, Treasurer, duly authorized to sign
this report in such capacities and on behalf of
the Registrant.)
13
<TABLE> <S> <C>
<ARTICLE> 5
<CURRENCY> US DOLLARS
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-01-1995
<PERIOD-END> MAR-31-1995
<EXCHANGE-RATE> 1
<CASH> 5183809
<SECURITIES> 69003467
<RECEIVABLES> 9183456
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 3944625
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 87315357
<CURRENT-LIABILITIES> 46509772
<BONDS> 0
<COMMON> 2923404
0
0
<OTHER-SE> 37882181
<TOTAL-LIABILITY-AND-EQUITY> 87315357
<SALES> 2305776
<TOTAL-REVENUES> 3735445
<CGS> 0
<TOTAL-COSTS> 1410414
<OTHER-EXPENSES> 850955
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 1474075
<INCOME-TAX> 304656
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1169419
<EPS-PRIMARY> 0
<EPS-DILUTED> .50
</TABLE>
