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 June 30, 1999
Commission file Number 01-16934
BOL BANCSHARES, INC.
(Exact name of registrant as specified in its charter.)
Louisiana 72-1121561
(State of incorporation) (I. R. S. Employee Identification No.)
300 St. Charles Avenue, New Orleans, La. 70130
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (504) 889-9400
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 [ ]
Indicate the number of shares outstanding of each of the issuer's
classes of common stock, as of the latest practical date:
Common Stock, $1 Par Value - 179,145 shares as of July 31, 1999.
<PAGE>
BANCSHARES, INC.
INDEX
Page No.
PART 1. Financial Information
Item 1: Financial Statements
Consolidated Statement of Condition 3
Consolidated Statements of Income 5
Consolidated Statements of Comprehensive Income (Loss) 6
Consolidated Statements of Changes in
Stockholder's Equity 7
Consolidated Statement of Cash Flow 8
Notes to Consolidated Financial Statements 9
Item 2: Management's Discussion and Analysis of
Financial Condition and Results of
Operation 14
PART II. Other Information
Item 6. Exhibits and Reports on Form 8-K
A. Exhibits
Exhibit 27. Financial Data Schedule 25
B. Reports on Form 8-K
No reports have been filed on Form 8-K
during this quarter.
<PAGE>
Part I. - Financial Information
BOL BANCSHARES, INC.
CONSOLIDATED STATEMENT OF CONDITION
(Unaudited)
[CAPTION]
<TABLE>
June 30 Dec. 31, June 30
(Amounts in Thousands) 1999 1998 1998
<S> <C> <C> <C>
ASSETS
Cash and Due from Banks
Non-Interest Bearing Balances and Cash 7,460 6,693 7,790
Interest Bearing Balances - - -
Investment Securities
Securities Held to Maturity (Fair Values at
6/30/99, 12/31/98, & 6/30/98 respectively 4,014 4,498 8,491
were
$4,008,000, $4,514,000, and $8,513,000)
Securities Available for Sale 350 291 90
Federal Funds Sold 32,355 26,950 19,000
Loans, net of Unearned Discount 56,763 61,757 59,509
Allowance for Loan Losses (1,800) (1,800) (1,800)
Property, Equipment and Leasehold Improvements
(Net of Depreciation and Amortization) 2,778 2,506 2,596
Other Real Estate 1,340 1,357 1,473
Deferred Taxes 267 287 618
Letters of Credit 76 84 114
Other Assets 1,168 1,312 1,939
TOTAL ASSETS $104,771 $103,935 $99,820
See accompanying notes to Financial Statements
</TABLE>
<PAGE>
BOL BANCSHARES, INC.
CONSOLIDATED STATEMENT OF CONDITION (Continued)
[CAPTION]
<TABLE>
June 30 Dec. 31, June 30
(Amounts in Thousands) 1999 1998 1998
<S> <C> <C> <C>
LIABILITIES
Deposits:
Non-Interest Bearing 35,132 36,826 33,936
Interest Bearing 60,748 57,757 56,817
TOTAL DEPOSITS 95,880 94,583 90,753
Notes Payable 2,246 2,272 2,281
Letters of Credit Outstanding 76 84 114
Accrued Litigation Settlement 200 200 150
Accrued Interest 483 526 531
Other Liabilities 451 350 552
TOTAL LIABILITIES 99,336 98,015 94,381
STOCKHOLDERS' EQUITY
Preferred Stock - Par Value $1
2,302,811 Shares Issued and Outstanding at
6/30/99, 12/31/98, and 6/30/98 2,303 2,303 2,303
Common Stock - Par Value $1
179,145 Shares Issued and Outstanding at
6/30/99, 12/31/98, and 6/30/98 179 179 179
Accumulated Other Comprehensive Income 171 133 -
Capital in Excess of Par - Retired Stock 15 15 15
Undivided Profits 3,290 2,784 2,783
Current Earnings (523) 506 159
TOTAL STOCKHOLDERS' EQUITY 5,435 5,920 5,439
TOTAL LIABILITIES AND STOCKHOLDERS' 104,771 $103,935 $99,820
EQUITY
See accompanying notes to Financial Statements
</TABLE>
<PAGE>
BOL BANCSHARES, INC.
CONSOLIDATED STATEMENT OF INCOME (Unaudited)
[CAPTION]
<TABLE>
Three Six months ended
months
ended
June 30 June 30
(Amounts in Thousands) 1999 1998 1999 1998
<S> <C> <C> <C> <C>
INTEREST INCOME
Interest and Fees on Loans 1,900 2,058 3,842 4,073
Interest on Time Deposits - - - -
Interest on Securities Held to 51 136 111 276
Maturity
Interest & Dividends on Securities - - 2 6
Available for Sale
Interest on Federal Funds Sold 385 295 724 570
Other Interest Income - - - -
Total Interest Income 2,336 2,489 4,679 4,925
INTEREST EXPENSE
Interest on Deposits 431 450 848 908
Interest on Federal Funds Purchased - - - -
Other Interest Expense 10 10 20 20
Interest Expense on Notes Payable 2 2 5 5
Interest Expense on Debentures 40 41 80 80
Total Interest Expense 483 503 953 1,013
NET INTEREST INCOME 1,853 1,986 3,726 3,912
Provision for Loan Losses 327 189 425 489
NET INTEREST INCOME AFTER PROVISION
FOR LOAN LOSSES 1,526 1,797 3,301 3,423
OTHER INCOME
Service Charges on Deposit Accounts 295 313 576 644
Cardholder & Other Credit Card Income 174 175 329 324
ORE Income 12 4 15 7
Other Operating Income 49 59 144 151
Gain on Sale of Securities - - - -
Total Other Income 530 551 1,064 1,126
OTHER EXPENSE
Salaries and Employee Benefits 998 940 1,993 1,767
Occupancy Expense 506 467 992 947
Loan & Credit Card Expense 277 257 530 487
ORE Expense 22 39 55 80
Other Operating Expense 678 565 1,318 1,109
Total Other Expenses 2,481 2,268 4,888 4,390
Income Before Tax Provision (425) 80 (523) 159
Provision (Benefit) For Income Taxes - - - -
NET INCOME (425) 80 (523) 159
Earnings Per Share of Common Stock ($2.38) $0.45 ($2.92) $0.89
See accompanying notes to Financial Statements
</TABLE>
<PAGE>
BOL BANCSHARES, INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
[CAPTION]
<TABLE>
June 30 June 30
(Amounts in thousands) 1999 1998
<S> <C> <C>
NET INCOME (LOSS) (523) 159
OTHER COMPREHENSIVE INCOME, NET
OF TAX
Unrealized Holding Gains
(Losses) on
Investment Securities Available- 38 1
for-
Sale, Arising During the Period
Less: Reclassification
Adjustment for
Gains Included in Net Income
OTHER COMPREHENSIVE INCOME
COMPREHENSIVE INCOME (LOSS) ($485) $160
See accompanying notes to Financial Statements
</TABLE>
<PAGE>
BOL BANCSHARES, INC.
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS EQUITY
(Unaudited)
[CAPTION]
<TABLE>
(Amounts in ACCUMULATED CAPITAL IN
Thousands)
OTHER EXCESS OF
COMPREHEN- PAR
PREFERRED COMMON SIVE RETIRED RETAINED
STOCK STOCK INCOME STOCK EARNINGS TOTAL
<S> <C> <C> <C> <C> <C> <C>
Balance December 31, 2,303 179 (1) 15 2,783 5,279
1997
Other Comprehensive
Income, net of
applicable deferred
income taxes 1 1
Net Income 159 159
Balance - June 30, 2,303 179 - 15 2,942 $5,439
1998
Balance December 31, 2,303 179 133 15 3,290 5,920
1998
Other Comprehensive
Income, net of
applicable deferred
income taxes 38 38
Net Income (Loss)
(523) (523)
Balance - June 30, 2,303 179 171 15 2,767 $5,435
1999
</TABLE>
<PAGE>
BOL BANCSHARES, INC.
STATEMENTS OF CASH FLOWS
(Unaudited)
[CAPTION]
<TABLE>
For The Six Months Ended June 30
(Amounts in Thousands) 1999 1998
<S> <C> <C>
OPERATING ACTIVITIES
Net Income (Loss) (523) 159
Adjustments to Reconcile Net Income (Loss) to Net
Cash
Provided by (Used in) Operating Activities:
Provision for Loan Losses 425 780
Depreciation and Amortization Expense 254 219
Amortization of Investment Security Premiums 7 1
Accretion of Investment Security Discounts (2) (8)
Decrease(Increase)in Deferred Income Taxes 20 -
(Gain) Loss on Sale of Property and Equipment - -
(Gain) Loss on Sale of Other Real Estate (10) -
(Decrease)Increase in Other Assets & Prepaid Taxes 89 595
(Decrease)Increase in Other Liabilities, Accrued 98 143
Interest and Accrued Loss Contingency
Net Decrease(Increase) in Mortgage Loans Held for - -
Resale
Net Cash Provided by (Used in) Operating Activities 358 1,889
INVESTING ACTIVITIES
Proceeds from Sale of Available-for-Sale - -
Securities
Purchases of Available-for-Sale Securities - -
Proceeds from Available-for-Sale Securities
Released at Maturity - 1,000
Proceeds from Held-to-Maturity Investment
Securities
Released at Maturity 3,500 1,495
Purchases of Held-to-Maturity Investment (3,022) (501)
Securities
Proceeds from Sale of Property and Equipment 0 1
Purchases of Property and Equipment (527) (119)
Proceeds from Sale of Other Real Estate 85 -
Purchases of Other Real Estate (63) -
Net Decrease (Increase) in Loans 4,571 (2,669)
Net Cash Provided by (Used in) Investing Activities 4,544 (793)
FINANCING ACTIVITIES
Net Increase (Decrease) in Non-Interest Bearing and
Interest Bearing Deposits 1,296 (3,188)
Proceeds from Issuance of Long-Term Debt - -
Retirement of Stock - -
Principal Payments on Long Term Debt (27) (2)
Net Cash Provided by (Used in) Financing Activities 1,269 (3,190)
Net Increase (Decrease) in Cash and Cash 6,171 (2,094)
Equivalents
Cash and Cash Equivalents - Beginning of Year 33,643 28,884
Cash and Cash Equivalents - End of Period $39,814 $26,790
See accompanying notes to Financial Statements
</TABLE>
<PAGE>
BOL BANCSHARES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
June 30, 1999
Note 1. BASIS OF PRESENTATION
The accompanying unaudited consolidated financial statements have been
prepared in accordance with generally accepted accounting principles for
interim financial information and with the instructions to Form 10-Q and
Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the
information and footnotes required by generally accepted accounting
principles. In the opinion of management, all adjustments (consisting of
normal recurring accruals) considered necessary for a fair presentation
have been included. Operating results for the six-month period ended June
30, 1999, are not necessarily indicative of the results that may be
expected for the year ending December 31, 1999. For further information,
refer to the audited consolidated financial statements and notes included
in the Registrant's annual report on Form 10-K for the year ended December
31, 1998.
Note 2. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
The regular annual meeting of shareholders of BOL BANCSHARES, INC.,
was held on April 13, 1999. All incumbent directors were re-elected.
There were no other matters voted upon at the meeting.
Below are the names of the nominees who were elected to continue their
term as directors and the number of shares cast. The total shares voting
were 133,815.
[CAPTION]
<TABLE>
Number of Shares
Nominee For Against Abstain
<S> <C> <C> <C>
Gordon A. Burgess 133,255 100 460
James A. Comiskey 133,255 100 460
Lionel J. Favret 133,355 0 460
Louis G. Grush DECEASED - -
Gerry E. Hinton 133,355 0 460
Leland L. Landry 133,355 0 460
Douglas A. Schonacher 133,255 100 460
G. Harrison Scott 133,255 100 460
Edward J. Soniat 133,355 0 460
</TABLE>
Note 3 PER SHARE DATA
Income per common share data are based on the weighted average number
of shares outstanding of 179,145 at June 30, 1999 and 1998 respectively.
Note 4. CONTINGENCIES
Because of the nature of the banking industry in general, the Company
and the Bank are each parties from time to time to litigation and other
proceedings in the ordinary course of business, none of which (other than
those described below), either individually or in the aggregate, have a
material effect on the Company's and/or the Bank's financial condition.
Other than the lawsuits described below, the Company has either (i)
posted reserves adequate to pay any judgments that may be rendered against
<PAGE>
the Company and such posting is reflected in the Company's consolidated
financial statements for the period ending March 31, 1999, or (ii) believes
the lawsuit is without sufficient merit or monetary exposure to require the
posting of a reserve. The Company has not provided a judicial interest
that may be awarded on a judgment pending the conclusion of the appeals
procedure. Indeed, should the Company be successful in any of those
lawsuits in which it has posted reserves, recoveries would be realized and
the Company's consolidated net income would be positively impacted.
The following actions, however, have been brought against the Company
and, if the claimants were wholly successful on the merits, could result in
significant exposure to the Bank:
1. The Company is a defendant in a lawsuit filed by a proprietary
merchant alleging that the Company mishandled the Plaintiff's proprietary
credit card portfolio. The Plaintiff seeks to recover in excess of
$1,800,000. The Bankruptcy Court has established an escrow account, in
which $270,404 was on deposit as of October 31, 1996, for the protection of
the Company. This amount would significantly reduce any losses incurred by
the Company in the event the Plaintiff is wholly successful on the merits.
During 1997, a judgment was rendered against the Bank, and accordingly, a
provision for loss of $150,000 has been charged to operation. The Bank has
countersued and is presently appealing the judgment. The appeal has been
pending since June, 1998.
Expected Results: Outside counsel advises that the Plaintiff will not
prevail at all against the Company and that the Company will be able to
fully recover all of its losses in this matter.
2. The Company is a defendant in a lawsuit filed by another bank
alleging the Company improperly dishonored checks totaling $979,000. The
Company claims that such checks were properly returned "nonsufficient
funds". When these checks were returned to the Plaintiff, of the $979,000,
one check for $110,000 was misplaced by the FRB and therefore returned late
to the Plaintiff. The Company was forced to cover the amount of the check.
The Company filed a countersuit against the Plaintiffs for contribution on
the $110,000 loss and for tortious interference. The Plaintiff filed
exceptions to the countersuit. These exceptions were heard in the district
court and the Company's right to contribution was maintained, however the
Company's suit for tortious interference was dismissed. On appeal, the
appellate court sustained the Company's right to contribution and overruled
the lower court's decision on tortious interference, finding that the
Company could maintain such a cause of action. The Louisiana Supreme Court
denied writs filed by the Plaintiff. The case is currently awaiting trial.
The Company is vigorously defending all claims asserted in this suit.
Expected Results: Outside counsel advises that the Company will not
pay any damages in this matter and the likelihood is reasonably high that
the Company will obtain some recovery from the Plaintiff.
3a. Another proprietor filed a separate lawsuit on the same day that
the Company initiated proceedings against this proprietor in Louisiana.
The proprietor's suit was filed in the Southern District of New York and
alleges that the Company mismanaged the proprietary credit card portfolio.
It is known that the principal of the proprietor mentioned in 1. above has
assisted in the preparation of this lawsuit and this litigation parrots the
lawsuit mentioned in 1. above. The Company has filed a motion to dismiss
the suit on the grounds that the parties agreed to litigate in Louisiana
and on the further grounds that the Company is not subject to that Court's
jurisdiction. The Company also moved to have the matter transferred by the
judicial panel on multidistrict litigation.
These rights were granted and consolidated.
3b. The new owners of the company mentioned in 3a. above filed a
lawsuit in New York, claiming that it had security interest which primed
the Company. The present principals came into existence on July 31, 1996
for the sole purposes of taking over the failing company and managing the
operations. The new owners filed UCC-1 Statement to protect a consignment
agreement it had with the failing company in August, 1996. The Company, on
the other hand, filed UCC-1 Statements to protect its credit card portfolio
in November and December of 1995. Just prior to the new principals filing
in New York, the Company filed suit for declaratory judgment regarding the
ranking of the liens in the Eastern District of Louisiana.
<PAGE>
3c. The Company's suit centers around the proprietor sequestering
payments which they received from the Company's credit card holders, but
never forwarded to the Company. That amount exceeds $423,000.
On October 1, 1997 the matters were transferred by the judicial panel
on multidistrict litigation to the Eastern District of Louisiana and
consolidated with the other cases. Hence 3a, 3b, and 3c have become one
case.
The Company sought injunction relief, requiring the proprietor to
disclose where the payments were held and to either pay the funds to the
Company or deposit the money in the Registry of the Court. On October 2,
1997 in order to avoid a hearing on the preliminary injunction which would
have required the proprietor to disclose the location of the sequestered
funds, the proprietor agreed to post bond with the Louisiana Federal Court,
while drafts were being prepared. On October 15, 1997 the proprietor filed
for Chapter 11. The Company requested that the stay be lifted in order to
allow its claim against the proprietor to be liquidated and to recoup all
of its losses and damages suffered from the proprietor. Trial has been set
for June, 1999.
Expected Results: The Company filed its UCC-1 Statements first.
There is little doubt that the Company primes the proprietor. The Company
anticipates significant recoveries.
4. The Bank is a defendant in a lawsuit filed by an individual for
damages because a settlement draft for $58,685 was forged by an attorney
who maintained his trust account with the Bank. The attorney has been
disbarred for prior defalcations and is judgment-proof. A provision for
loss of $50,000 was charged to operations in 1998. This matter is still
pending.
Expected Results: Since the Bank has a provision for this lawsuit,
any further losses would be minimal.
Note 5. DISCLOSURE ABOUT FAIR VALUE OF FINANCIAL INSTRUMENTS
The following methods and assumptions were used to estimate the fair
value of each class of financial instruments for which it is practicable to
estimate the value:
CASH AND SHORT-TERM INVESTMENTS
For cash, the carrying amount approximates fair value. For short-term
investments, fair values are calculated based upon general investment
market interest rates for similar maturity investments.
INVESTMENT SECURITIES
For securities and marketable equity securities held-for-investment
purposes, fair values are based on quoted market prices.
LOAN RECEIVABLES
For certain homogeneous categories of loans, such as residential
mortgages, credit card receivables and other consumer loans, fair value is
estimated using the current U.S. Treasury interest rate curve, a factor for
cost of processing and a factor for historical credit risk to determine the
discount rate.
DEPOSIT LIABILITIES
The fair value of demand deposits, savings deposits and certain money
market deposits are calculated based upon general investment market
interest rates for investments with similar maturities. The value of fixed
maturity certificates deposit is estimated using the U.S. Treasury interest
rate curve currently offered for deposits of similar remaining maturities.
COMMITMENTS TO EXTEND CREDIT
The fair value of commitments is estimated using the fees currently
charged to enter into similar agreements, taking into account the remaining
terms of the agreements and the present creditworthiness of the
counterparties.
<PAGE>
The estimated fair values of the Bank's financial instruments are as follows:
[CAPTION]
<TABLE>
JUNE 30, 1999
Carrying Fair
(Amounts in Thousands) Amount Value
<S> <C> <C>
Financial Assets:
Cash and Short-Term Investments $39,815 $39,815
Investment Securities 4,364 4,358
Loans 56,763 56,476
Less: Allowance for Loan Losses 1,800 1,800
$99,142 $98,849
Financial Liabilities:
Deposits $95,880 $95,963
Unrecognized Financial Instruments:
Commitments to Extend Credit $2,019 $2,019
Commercial Lines of Credit 76 76
Credit Card Arrangements 55,837 55,837
$57,932 $57,932
</TABLE>
<PAGE>
QUARTERLY CONSOLIDATED SUMMARY OF INCOME AND SELECTED FINANCIAL DATA
[CAPTION]
<TABLE>
Three Six Months Ended
Months Ended
(Amounts in Thousands, June 30 March 31, June 30 June 30 June 30
Except
Per Share Data) 1999 1999 1998 1999 1998
<S> <C> <C> <C> <C> <C>
Interest Income 2,336 $2,343 $2,489 4,679 $4,925
Interest Expense 483 470 503 953 1,013
Net Interest Income 1,853 1,873 1,986 3,726 3,912
Provision for Loan 327 98 189 425 489
Losses
Net Interest Income 1,526 1,775 1,797 3,301 3,423
after Provision
Noninterest Income:
Noninterest Income 530 534 551 1,064 1,126
Securities Gains - - - - -
Noninterest Income 530 534 551 1,064 1,126
Noninterest Expense 2,481 2,407 2,268 4,888 4,390
Income before Taxes (425) (98) 80 (523) 159
Income Tax Expense - - - - -
(Benefit)
Net Income (Loss) ($425) ($98) $80 ($523) $159
Income per Common Share ($2.38) ($0.55) $0.45 ($2.92) $0.89
Average Common Shares 179 179 179 179 179
Outstanding
Selected Quarter-End Balances
Loans $56,763 $57,237 $59,509
Deposits 95,880 95,673 90,753
Long-Term Debt 2,246 2,271 2,281
Stockholders' Equity 5,435 5,822 5,439
Total Assets 104,771 105,153 99,820
Selected Average Balances
Loans $56,855 $58,592 $58,392 $57,719 $58,475
Deposits 94,694 92,366 91,070 93,830 91,175
Long-Term Debt 2,255 2,271 2,281 2,263 2,282
Stockholders' Equity 5,531 5,965 5,379 5,739 5,161
Total Assets 103,591 102,249 100,007 102,916 99,957
Selected Ratios
Return on Average Assets -0.41% -0.10% 0.08% -0.51% 0.16%
Return on Average Equity -7.69% -1.64% 1.49% -9.12% 3.08%
Tier 1 Risk-Based 11.41% 11.93% 11.18%
Capital
Risk-Based Capital 12.68% 13.20% 12.46%
Tier 1 Leverage 6.96% 7.42% 7.06%
</TABLE>
<PAGE>
BOL BANCSHARES, INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
June 30, 1999
Management's Discussion presents a review of the major factors and
trends affecting the performance of BOL BANCSHARES, INC. (the "Company")
and its bank subsidiary (the Bank) and should be read in conjunction with
the accompanying consolidated financial statements, notes and tables.
ACCOUNTING FOR YEAR 2000 COSTS
The Company's Board of Directors has formulated a policy and has
dedicated sufficient funds for the modification and replacement of software
and hardware to ensure Year 2000 compliance.
The Company began its replacement and modification of its software and
hardware in late 1995, to ensure that operations would not be impaired by
the date change. The related costs are capitalized and depreciated over
the useful life of the asset.
Certification has been received from the Company's vendors to confirm
compliance on the respective equipment and software. All critical
applications have already been modified and replaced, with one application
presently in the migration process. This final replacement was implemented
in March, 1999 and will be fully tested by June, 1999.
FINANCIAL CONDITION:
EARNING ASSETS
Interest earning assets averaged $92,999,000 in the second quarter of
1999, a $3,925,000 increase from the second quarter of 1998 average of
$89,074,000. Compared to the second quarter of 1998, average loans
decreased $756,000 (1.29%) and average investment securities decreased
$5,120,000 (53.41%), while average federal funds sold increased $9,801,000
(46.64%).
Table 1 presents the Company's loan portfolio by major
classifications. Total loans decreased $2,746,000 (4.61%)over the second
quarter of 1998. This decrease is mainly attributable to the decline in
the credit card portfolio. Visa / MasterCard loans decreased $3,072,000
(13.71%) and Proprietary loans decreased $1,073,000 (31.23%) due to the
loss of several proprietary accounts.
TABLE 1. MAJOR CLASSIFICATION OF LOAN PORTFOLIO
[CAPTION]
<TABLE>
June 30, March 31, 1999 June 30, 1998
1999
(Amounts in Loans % Loans % Loans %
Thousands)
<S> <C> <C> <C> <C> <C> <C>
Commercial, 4,073 7.18% 4,834 8.45% 5,332 8.96%
Financial, &
Agricultural
Real Estate Mortgage 27,720 48.83% 26,494 46.29% 24,892 41.83%
Mortgage Loan Held - 0.00% - 0.00% - 0.00%
for Resale
Personal Loans 3,179 5.60% 2,904 5.07% 3,316 5.57%
Credit Cards-Visa, 19,331 34.06% 20,278 35.43% 22,403 37.65%
MasterCard
Credit Cards- 2,363 4.16% 2,592 4.53% 3,436 5.77%
Proprietary
Overdrafts 97 0.17% 135 0.24% 130 0.22%
Loans $56,763 100.00% $57,237 100.00% $59,509 100.00%
</TABLE>
<PAGE>
Securities Held to Maturity. Average securities held to maturity
decreased $5,145,000 (55.20%) from the second quarter of 1998. Securities
held to maturity are carried as cost, adjusted for amortization of premium
and accretion of discounts using methods approximating the interest method.
Securities Available for Sale. Average securities available for sale
increased $25,000 (9.55%) from the second quarter of 1998. Securities
available for sale are carried at fair value.
Short Term Investments. Average federal funds sold increased
$9,801,000 (46.64%) up from the second quarter of 1998. This increase is
mainly due to the decrease in the aforementioned credit card portfolio.
ASSET QUALITY
Table 2 presents a summary of nonperforming assets for the past five
quarters.
Nonperforming assets consist of nonaccrual and restructured loans and
ORE. Nonaccrual loans are loans on which the interest accruals have been
discontinued when it appears that future collection of principal or
interest according to the contractual terms may be doubtful. Interest on
these loans is reported on the cash basis as received when the full
recovery of principal is anticipated or after full principal has been
recovered when collection of interest is in question. The loan process
ensures that all loans which meet the criteria for nonaccrual status are
placed on nonaccrual. Restructured loans are those loans whose terms have
been modified, because of economic or legal reasons related to the debtors'
financial difficulties, to provide for a reduction in principal, change in
terms, or fixing of interest rates at below market levels. ORE is real
property acquired by foreclosure or directly by title or deed transfer in
settlement of debt.
Nonperforming assets, totaled $2,175,000 at June 30, 1999 as compared
to $2,132,000 at June 30, 1998. Other real estate totaled $1,340,000 at
June 30, 1999 as compared to $1,473,000 at June 30, 1998.
Table 2. NONPERFORMING ASSETS
[CAPTION]
<TABLE>
(Amounts in 06/30/99 03/31/99 12/31/98 09/31/98 06/31/98
Thousands)
<S> <C> <C> <C> <C> <C>
Nonaccrual Loans 835 802 81 31 94
Restructured Loans - - - 455 565
Other Real Estate 1,340 1,415 1,357 1,357 1,473
Owned
Total Nonperforming $2,175 $2,217 $1,438 $1,843 $2,132
Assets
Loans Past Due 90 539 821 852 1,183 1,039
Days or More
Ratio of Past Due 0.95% 1.43% 1.42% 2.00% 1.75%
loans to Loans
Ratio of Nonperforming Assets
to Loans
and Other Real 3.74% 3.78% 2.34% 3.04% 3.50%
Estate Owned
</TABLE>
IMPAIRED LOANS
As of June 30, 1999, the recorded investment in loans that are
considered impaired under SFAS 114 and 118 was $0. The related allowance
for credit losses for the impaired loans is not specifically identified,
but is included in the percentages allocated to the portfolio.
WATCH LIST
The Bank's watch list includes loans which, for management purposes,
have been identified as requiring a higher level of monitoring due to risk.
The Bank's watch list includes both performing and nonperforming loans.
The majority of watch list loans are classified as performing, because they
<PAGE>
do not have characteristics resulting in uncertainty about the borrower's
ability to repay principal and interest in accordance with the original
terms of the loans.
The watch list consists of classifications, identified as Type 1
through Type 4. Types 1, 2 and 3 generally parallel the regulatory
classifications of loss, doubtful and substandard, respectively. Type 4
generally parallels the regulatory classification of Other Assets
Especially Mentioned(OAEM). These loans require monitoring due to
conditions which, if not corrected, could increase credit risk. Total
watch list loans decreased 21.79% to $2,975,000 at June 30, 1999 from
$3,804,000 at June 30, 1998.
Management is not aware of any potential problem loans other than
those disclosed above,which includes all loans recommended for classification
by regulators, which would have a material impact on asset quality.
ALLOWANCE AND PROVISION FOR POSSIBLE LOAN LOSSES
Table 3 presents an analysis of the activity in the allowance for loan
losses for the three month and six month period ending June 30, 1999 and
1998. The allowance for loan losses as a percentage of loans increased
from 3.02% at June 30, 1998 to 3.17% at June 30, 1999. The net charge-off
(recoveries) as a percentage of average loans increased from .32% at June
30, 1998 to .58% at June 30, 1999.
The allowance for loan losses is established through a provision for
loan losses charged to expenses. Management's policy is to maintain the
allowance for possible loan losses at a level sufficient to absorb losses
inherent in the loan portfolio. The allowance is increased by the
provision for loan losses and decreased by charge-offs, net of recoveries.
Management's evaluation process to determine potential losses includes
consideration of the industry, specific conditions of individual borrowers,
historical loan loss experience and the general economic environment. As
these factors change, the level of loan loss provision changes. Loans are
charged against the allowance for loan losses when management believes that
the collectibility of the principal is unlikely. Accrual of interest is
discontinued and accrued interest is charged off on a loan when management
believes, after considering economic and business conditions and collection
efforts, that the borrower's financial condition is such that collection of
interest is doubtful. Ultimate losses may vary from the current estimates.
These estimates are reviewed periodically and, as adjustments become
necessary, they are reflected in current operations.
TABLE 3 - ALLOWANCE FOR LOAN LOSSES
[CAPTION]
<TABLE>
Three Six Months Ended
Months
Ended
June 30, June 30, June 30, June 30,
(Amounts in Thousands) 1999 1998 1999 1998
<S> <C> <C> <C> <C>
Balance at Beginning of $1,800 $1,800 $1,800 $1,800
Period
Loans Charged Off (483) (444) (779) (1,024)
Recoveries 156 255 354 535
Net (Charge Offs) (327) (189) (425) (489)
Recoveries
Provision for Loan 327 189 425 489
Losses
Balance at End of Period $1,800 $1,800 $1,800 $1,800
Allowance for Loan Losses as a
Percentage of Loans 3.17% 3.02% 3.17% 3.02%
Net (Charge Offs) Recoveries as a Percentage
of Average Loans 0.58% 0.32% 0.74% 0.84%
</TABLE>
FUNDING SOURCES:
DEPOSITS
Deposits. Average deposits totaled $94,694,000 in the second quarter
of 1999, a increase of $3,624,000 (3.98%) from $91,070,000 in the second
quarter of 1998. Average core deposits were $92,781,000 for the second
<PAGE>
quarter of 1999 up from $89,709,000 in the second quarter of 1998. Table 4
presents the composition of average deposits for the three quarters ending
June 30, 1999, March 31, 1999 and June 30, 1998.
TABLE 4. DEPOSIT COMPOSITION
[CAPTION]
<TABLE>
For The Three Months Ended
Jun 30, Mar 31, Jun 30,
1999 1999 1998
Average % of Average % of Average % of
(Amounts in Balances Deposits Balances Deposits Balances Deposits
Thousands)
<S> <C> <C> <C> <C> <C> <C>
Demand, Noninterest- $35,477 37.47% $35,543 38.48% $34,168 37.52%
Bearing
NOW Accounts 13,508 14.26% 12,905 13.97% 12,066 13.25%
Money Market Deposit 6,539 6.91% 5,815 6.30% 5,843 6.42%
Accounts
Savings Accounts 27,224 28.75% 26,990 29.22% 26,537 29.14%
Other Time Deposits 10,033 10.59% 9,451 10.23% 11,095 12.18%
Total Core Deposits $92,781 97.98% 90,704 98.20% 89,709 98.51%
Certificates of Deposit of
$100,000 or more 1,913 2.02% 1,662 1.80% 1,361 1.49%
Total deposits $94,694 100.00% $92,366 100.00% $91,070 100.00%
</TABLE>
BORROWINGS
The Company's long-term debt is comprised primarily of debentures
which are secured by 39.72 shares of the Subsidiary Bank's stock. The Bank
has no long-term debt. It is the Bank's policy to manage its liquidity so
that there is no need to make unplanned sales of assets or to borrow funds
under emergency conditions. The Bank maintains a Federal Funds line of
credit in the amount of $600,000 with a correspondent bank and also has a
commitment from an upstream correspondent which will increase our Federal
Funds line of credit over and above the normal amount by pledging unused
securities. In addition, the Bank also maintains a Federal Funds line of
credit in the amount of $1,000,000 with another correspondent bank.
INTEREST RATE SENSITIVITY
The Bank has established, as bank policy, an asset/liability
management system that protects Bank profits from undue exposure to
interest rate risks. The major elements used to manage interest rate risk
include the mix of fixed and variable rate assets and liabilities and the
maturity pattern of assets and liabilities. It is the Company's policy not
to invest in derivatives in the ordinary course of business. The Company
performs a monthly review of assets and liabilities that reprice and the
time bands within which the repricing occurs. Balances are reported in the
time band that corresponds to the instrument's next repricing date or
contractual maturity, whichever occurs first. Through such analysis, the
Company monitors and manages its interest sensitivity gap to minimize the
effects of changing interest rates.
GAP & INTEREST MARGIN SPREAD
By Bank policy we limit the Bank's earnings exposure due to interest
rate risk by setting limits on positive and negative gaps within the next
12 months. These limits are set so that this year's profits will not be
unduly impacted no matter what happens to interest rates during the year.
In addition, we extend the scenarios out five years to monitor the risks
associated on a longer term.
<PAGE>
RESULTS OF OPERATIONS:
NET INTEREST INCOME
Net interest income, the difference between interest income and
interest expense, is a significant component of the performance of a
banking organization. Data used in the analysis of net interest income are
derived from the daily average levels of earnings assets and interest
bearing deposits as well as from the related income and expense. Net
interest income is not developed on a taxable equivalent basis because the
level of tax exempt income is not material. The primary factors that
affect net interest income are the changes in volume and mix of earning
assets and interest-bearing liabilities, along with the change in market
rates.
Net interest income for the second quarter of 1999 decreased $133,000
over the same period last year, and decreased $186,000 from the first six
months of 1998. The net interest income margin decreased to 1.97% for the
second quarter of 1999 from 2.22% for the second quarter of 1998. The
decline of the net interest income is attributable to the decline in the
credit card portfolio.
<PAGE>
CONSOLIDATED AVERAGE BALANCE SHEETS, YIELDS AND RATES
[CAPTION]
<TABLE>
SECOND SECOND QUARTER 1998
QUARTER
1999
Average Average
(Amounts in Thousands) Balance Interest Rate Balance Interest Rate
<S> <C> <C> <C> <C> <C> <C>
ASSETS
INTEREST-EARNING ASSETS:
Loans, Net of Unearned Income(1)(2)
Taxable 56,855 1,900 3.34% 58,392 2,058 3.52%
Tax-Exempt - -
Investment Securities
Taxable 4,309 51 1.18% 9,248 136 1.47%
Tax-Exempt - -
Interest-Bearing Deposits - -
Federal Funds Sold 32,696 385 1.18% 21,762 295 1.36%
Total Interest-Earning 93,860 2,336 2.49% 89,402 2,489 2.78%
Assets
Cash and Due from Banks 5,634 5,588
Allowance for Loan Losses (1,777) (1,817)
Premises and Equipment 2,751 2,629
Other Real Estate 1,408 1,473
Other Assets 1,715 2,732
TOTAL ASSETS $103,591 $100,007
LIABILITIES AND SHAREHOLDERS' EQUITY
INTEREST-BEARING LIABILITIES:
Deposits:
Demand Deposits 20,047 91 0.45% 17,909 97 0.54%
Savings Deposits 27,224 206 0.75% 26,538 217 0.82%
Time Deposits 11,946 134 1.12% 12,455 136 1.09%
Total Interest-Bearing 59,217 431 0.73% 56,902 450 0.79%
Deposits
Federal Funds Purchased
Securities sold under
Agreements to Repurchase
Other Short-Term Borrowings - -
Long-Term Debt 2,255 52 2.31% 2,281 53 2.32%
Total Int-Bearing 61,472 483 0.79% 59,183 503 0.85%
Liabilities
Noninterest-Bearing 35,477 34,168
Deposits
Other Liabilities 1,111 1,277
Shareholders' Equity 5,531 5,379
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY 103,591 $100,007
Net Interest Income/Spread 1.70% 1.93%
Net Interest Margin 1.97% 2.22%
(1) Fee income relating to loans of $159,000 at June 30, 1999, and $147,000
at June 30, 1998 is included in interest income.
(2) Nonaccrual loans are included in average balances and income on such
loans, if recognized, is recognized on the cash basis.
(3) Interest income does not include the effects of taxable-equivalent
adjustments using a federal tax rate of 34%.
</TABLE>
<PAGE>
CONSOLIDATED AVERAGE BALANCE SHEETS, YIELDS AND RATES
[CAPTION]
<TABLE>
Six Six Months Ended 6/98
Months Ended6/99
Average Average
(Amounts in Thousands) Balance Interest Rate Balance Interest Rate
<S> <C> <C> <C> <C> <C> <C>
ASSETS
INTEREST-EARNING ASSETS:
Loans, Net of Unearned Income(1)(2)
Taxable 57,719 3,842 3.52% 58,475 4,073 6.97%
Tax-Exempt - -
Investment Securities
Taxable 4,466 113 1.47% 9,586 282 2.94%
Tax-Exempt - -
Interest-Bearing Deposits - -
Federal Funds Sold 30,814 724 1.36% 21,013 570 2.71%
Total Interest-Earning 92,999 4,679 5.03% 89,074 4,925 5.53%
Assets
Cash and Due from Banks 5,853 5,636
Allowance for Loan Losses (1,789) (1,815)
Premises and Equipment 2,677 2,644
Other Real Estate 1,394 1,473
Other Assets 1,782 2,945
TOTAL ASSETS $102,916 $99,957
LIABILITIES AND SHAREHOLDERS' EQUITY
INTEREST-BEARING LIABILITIES:
Deposits:
Demand Deposits 19,739 181 0.54% 18,119 197 1.09%
Savings Deposits 27,108 406 0.82% 26,593 418 1.57%
Time Deposits 11,473 261 1.09% 12,608 293 2.32%
Total Interest-Bearing 58,320 848 1.45% 57,320 908 1.58%
Deposits
Federal Funds Purchased
Securities sold under
Agreements to Repurchase
Other Short-Term Borrowings - -
Long-Term Debt 2,263 105 2.32% 2,282 105 4.60%
Total Int-Bearing 60,583 953 1.57% 59,602 1,013 1.70%
Liabilities
Noninterest-Bearing 35,510 33,855
Deposits
Other Liabilities 1,084 1,339
Shareholders' Equity 5,739 5,161
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY 102,916 $99,957
Net Interest Income/Spread 3.46% 3.83%
Net Interest Margin 4.01% 4.39%
(1) Fee income relating to loans of $298,000 at June 30, 1999, and $215,000
at June 30,1998 is included in interest income.
(2) Nonaccrual loans are included in average balances and income on such
loans, if recognized, is recognized on the cash basis.
(3) Interest income does not include the effects of taxable-equivalent
adjustments using a federal tax rate of 34%.
</TABLE>
<PAGE>
Rate/Volume Analysis
[CAPTION]
<TABLE>
June, 1999 Compared to June, 1998
Variance Attributed to (1)
Net
(Amounts in Thousands) Volume Rate Change
<S> <C> <C> <C>
Net Loans:
Taxable (756) -3.44% (231)
Tax-Exempt(2) - 0.00% -
Investment Securities - 0.00% -
Taxable (5,120) -1.47% (169)
Tax-Exempt(2) - 0.00% -
Interest-Bearing Deposits - 0.00% -
Federal Funds Sold 9,801 -1.36% 154
Total Interest-Earning Assets 3,925 -6.27% (246)
Deposits:
Demand Deposits 1,620 -0.55% (16)
Savings Deposits 515 -0.75% (12)
Time Deposits (1,135) -1.23% (32)
Total Interest-Bearing Deposits 1,000 -0.13% (60)
Federal Funds Purchased - 0.00% -
Securities Sold under Agreements to - 0.00% -
Repurchase
Other Short-Term Borrowings - 0.00% -
Long-Term Debt (19) -2.28% 0
Total Interest-Bearing Liabilities 1,981 -4.94% (120)
(1) The change in interest due to both rate and volume has been allocated
to the components in proportion to the relationship of the dollar
amounts of the change in each.
(2) Reflects fully taxable equivalent adjustments using a federal tax rate
of 34%.
</TABLE>
NONINTEREST INCOME AND EXPENSE
The amount of noninterest income and noninterest expenses of a banking
organization relate closely to the size of the total assets and deposits
and the number of deposit accounts. The amount of noninterest expense
represents the cost of operating the banking organization.
The major components of noninterest income are service charges related
to deposit accounts, cardholder and other credit card fees, Ore income,
gain on sale of ORE and other noninterest income.
Noninterest income for the second quarter of 1998 decreased $62,000 or
5.51% from the same period last year. Table 5 presents noninterest income
for the three months and six months ended June 30, 1999 and 1998.
<PAGE>
TABLE 5. NONINTEREST INCOME
[CAPTION]
<TABLE>
Three Six Months Ended
Months
Ended
June 30, June 30, Increase June 30, June 30, Increase
(Amounts in 1999 1998 (Decrease) 1999 1998 (Decrease)
Thousands)
<S> <C> <C> <C> <C> <C> <C>
Service Charges $137 $151 ($14) $272 $305 ($33)
NSF Charges 158 163 (5) 304 340 (36)
Gain on Sale of - - - - - -
Securities
Cardholder & Other 128 112 16 235 199 36
Credit Card Income
Membership Fees 46 62 (16) 94 125 (31)
Other Comm & Fees 24 26 (2) 47 48 (1)
ORE Income 2 4 (2) 5 7 (2)
Gain on Sale of ORE 10 - 10 10 0 10
Other Income 25 33 (8) 97 102 (5)
Total Non-Interest $530 $551 ($21) $1,064 $1,126 ($62)
Income
</TABLE>
NONINTEREST EXPENSE
The major components of noninterest expense represents the cost of
operating the banking organization.
Noninterest expense for the second quarter of 1999 increased $498,000
or 11.34% from the same period last year. Table 6 presents the activity
for the three months and six months ended June 30, 1999 and 1998.
TABLE 6. NONINTEREST EXPENSE
[CAPTION]
<TABLE>
Three Six Months Ended
Months
Ended
June 30, June 30, Increase June 30, June 30, Increase
(Amounts in 1999 1998 (Decrease) 1999 1998 (Decrease)
Thousands)
<S> <C> <C> <C> <C> <C> <C>
Salaries & Benefits $998 $940 $58 $1,993 $1,767 $226
Loss on Litigation - - - - - -
Occupancy Expense 506 467 39 992 947 45
Advertising Expense 29 26 3 64 57 7
Communications 54 56 (2) 100 108 (8)
Postage 83 101 (18) 163 187 (24)
Loan & Credit Card 277 258 19 530 487 43
Expense
Professional Fees 119 46 73 204 96 108
Legal Fees 132 140 (8) 311 253 58
Insurance & 25 22 3 54 45 9
Assessments
Stationery, Forms & 91 68 23 172 142 30
Supply
ORE Expenses 22 39 (17) 55 80 (25)
Other Operating 145 105 40 250 221 29
Expense
Total Non-Interest $2,481 $2,268 $213 $4,888 $4,390 $498
Expense
</TABLE>
INCOME TAXES
The Company did not record a provision for income taxes for the second
quarter of 1999 or 1998. The provision for income taxes consists of
provisions for federal taxes only. Louisiana does not have an income tax
for corporations.
<PAGE>
CAPITAL
The Bank is required to maintain minimum amounts of capital to total
"risk weighted" assets, as defined by banking regulators. Table 7 presents
these ratios for the most recent five quarters.
TABLE 7. QUARTERLY SELECTED CAPITAL RATIOS
[CAPTION]
<TABLE>
June 30, March Dec. 31, Sept. 30,June 30,
31,
1999 1999 1998 1998 1998
<S> <C> <C> <C> <C> <C>
Risk-Based Capital
Tier 1 Risk Based 11.41% 11.93% 11.36% 11.02% 11.18%
Capital Ratio
Risk Based Capital 12.68% 13.20% 12.63% 12.29% 12.46%
Ratio
Tier 1 Leverage Ratio 6.96% 7.42% 7.63% 7.21% 7.06%
</TABLE>
LIQUIDITY
The purpose of liquidity management is to ensure that there is
sufficient cash flow to satisfy demands for credit, deposit withdrawals,
and other corporate needs. Traditional sources of liquidity include asset
maturities and growth in core deposits. The Company has maintained
adequate liquidity through cash flow from operating activities and
financing activities to fund loan growth, and anticipates that this will
continue even if the Company expands.
Liquidity and capital resources are discussed weekly by the management
committee, the assets and liability committee and at the monthly executive
committee meeting. Bank of Louisiana maintains adequate capital to meet
its needs in the foreseeable future. The liquidity ratio for the Bank was
44.97% at June 30, 1999, 44.83% at March 31, 1999, and 39.02% at June 30,
1998.
Measuring liquidity and capital on a weekly basis enables management
to constantly monitor loan growth, and shifting customer preferences. The
committee's in-depth reviews of current, projected, and worse case
scenarios through various reports ensures the availability of funds and
capital adequacy.
The Bank intends on increasing capital by implementing an extensive
marketing program and evaluating all pricing fees and investing in
proprietary accounts which will maximize the highest yield possible and
thereby improve earnings.
There are no known trends, events, regulatory authority
recommendations, or uncertainties that the Company is aware of that will
have or that are likely to have a material adverse effect on the Company's
liquidity, capital resources, or operations.
PART II - OTHER INFORMATION
Item #6 Exhibits and Reports on Form 8-K
A. Exhibits
Exhibit 27. Financial Data Schedule
B. Reports on Form 8-K
No reports have been filed on Form 8-K during this quarter.
<PAGE>
BOL BANCSHARES, INC.
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 to sign on behalf of the
registrant.
BOL BANCSHARES, INC.
(Registrant)
/signed/ Peggy L. Schaefer
August 10, 1999 Peggy L. Schaefer
Date Treasurer
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 9
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> Dec-31-1999
<PERIOD-END> Jun-30-1999
<CASH> 7,460
<INT-BEARING-DEPOSITS> 0
<FED-FUNDS-SOLD> 32,355
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 4,364
<INVESTMENTS-CARRYING> 4,364
<INVESTMENTS-MARKET> 4,358
<LOANS> 56,763
<ALLOWANCE> 1,800
<TOTAL-ASSETS> 104,771
<DEPOSITS> 95,880
<SHORT-TERM> 0
<LIABILITIES-OTHER> 1,210
<LONG-TERM> 2,246
0
2,303
<COMMON> 179
<OTHER-SE> 0
<TOTAL-LIABILITIES-AND-EQUITY> 104,771
<INTEREST-LOAN> 3,842
<INTEREST-INVEST> 113
<INTEREST-OTHER> 724
<INTEREST-TOTAL> 4,679
<INTEREST-DEPOSIT> 848
<INTEREST-EXPENSE> 105
<INTEREST-INCOME-NET> 3,726
<LOAN-LOSSES> 425
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 4,888
<INCOME-PRETAX> (523)
<INCOME-PRE-EXTRAORDINARY> (523)
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (523)
<EPS-BASIC> ($2.92)
<EPS-DILUTED> 0
<YIELD-ACTUAL> 3.46
<LOANS-NON> 835
<LOANS-PAST> 539
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 2,975
<ALLOWANCE-OPEN> 1,800
<CHARGE-OFFS> 779
<RECOVERIES> 354
<ALLOWANCE-CLOSE> 1,800
<ALLOWANCE-DOMESTIC> 1,800
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
