<PAGE> 1
United States
Securities and Exchange Commission
Washington, D.C. 20549
----------
Form 10-Q
Quarterly Report Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
For the Quarterly Period Ended September 30, 1997
Commission File No.: 0-17703
----------
First American Bancorp
----------------------
(Exact name of registrant as specified in its charter)
Alabama 63-0879472
------- ----------
(State of Alabama) (I.R.S. Employer Identification No.)
251 Johnston Street, S.E.
Decatur, Alabama 35601
----------------------
(Address of principal executive offices)
(205) 340-7000
--------------
(Registrant's telephone number)
----------
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 the registrant's class of
common stock, as of the last practicable date.
Class Outstanding at September 30, 1997
----- ---------------------------------
Common Stock, $.01 Par Value 2,878,684
<PAGE> 2
First American Bancorp and Subsidiary
Form 10-Q
Index
<TABLE>
<CAPTION>
Part I Financial Information Page No.
- ------ --------------------- --------
<S> <C> <C>
Item 1 Consolidated Statements of Condition as of
September 30, 1997, September 30, 1996, and
December 31, 1996 3
Consolidated Statements of Income for the
Three Month and Nine Month Periods Ended
September 30, 1997 and September 30, 1996 4
Consolidated Statements of Cash Flows for
the Nine Month Periods Ended September 30, 1997
and September 30, 1996 5
Notes to Consolidated Financial Statements 6
Item 2 Management's Discussion and Analysis of
Financial Condition and Results of Operations 7
Part II Other Information
Item 1 Legal Proceedings 10
Item 2 Changes in Securities 10
Item 3 Defaults upon Senior Securities 10
Item 4 Submission of Matters to a Vote of Security Holders 10
Item 5 Other Information 10
Item 6 Exhibits and Reports on Form 8-K 11
Signatures 11
</TABLE>
<PAGE> 3
First American Bancorp and Subsidiary
Unaudited Consolidated Statements of Condition
As of September 30, 1997, and 1996 and December 31, 1996
<TABLE>
<CAPTION>
September 30, December 31,
1997 1996 1996
-------------------------------------------------
<S> <C> <C> <C>
ASSETS
Cash and due from banks $ 9,413,389 $ 9,275,349 $ 8,270,560
Interest bearing deposits in other banks 31,661 124,045 49,270
Federal funds sold 7,825,000
U.S. Treasury securities and obligations of other U.S.
Government agencies and corporations 5,684,338 6,437,221 6,845,355
Obligations of states and political subdivisions 10,493,756 11,105,349 10,536,228
Mortgage backed securities 9,960,432 11,411,427 10,241,965
Other securities 1,624,575 1,614,574 1,624,512
-------------------------------------------------
Total securities available for sale 27,763,101 30,568,571 29,248,060
Mortgage loans held for sale, net of discount 1,710,662 976,835 866,700
Loans, net of unearned income 178,451,784 168,266,712 172,973,942
Less: Allowance for loan losses (2,648,867) (1,619,144) (1,688,940)
-------------------------------------------------
Net loans 175,802,917 166,647,568 171,285,002
Premises and equipment, net 7,757,718 7,997,684 7,832,296
Other real estate 557,444 80,199
Accrued interest receivable 1,511,758 1,023,924 1,383,178
Deferred Tax Benefit 983,538 1,066,825 759,300
Other assets 2,487,587 1,831,730 3,243,142
-------------------------------------------------
TOTAL ASSETS $ 235,844,775 $ 219,512,531 $ 223,017,707
=================================================
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits:
Noninterest-bearing demand $ 24,816,253 $ 24,563,203 $ 22,043,303
Interest-bearing demand 60,506,172 63,369,250 66,050,592
Certificates of Deposit $100,000 and over 32,576,609 24,725,347 25,525,456
Other time and savings 77,832,435 66,573,942 69,803,186
-------------------------------------------------
Total deposits 195,731,469 179,231,742 183,422,537
Federal funds purchased 4,775,000 1,325,000
Current portion long term debt 13,523,004 105,000 1,105,000
Long term debt 12,500,000 12,500,000
Capital lease obligation 119,497 145,114 138,900
Accrued expenses and other liabilities 2,310,881 981,507 1,843,908
-------------------------------------------------
Total Liabilities 211,684,851 197,738,363 200,335,345
Shareholders' equity:
Preferred stock, par value $.01 per share Authorized -
400,000 shares; none issued
Common stock, par value $.01 per share
Authorized - 10,000,000 shares at
September 30, 1997 and September 30, 1996 and
December 31, 1996; issued and outstanding 2,878,684 shares,
2,263,295 shares and 2,263,884 shares, respectively 28,787 22,633 22,639
Additional paid in capital 15,346,050 10,914,658 15,166,195
Retained earnings 8,950,120 11,441,780 7,836,899
Unrealized loss on securities, available for sale, net of tax (165,033) (604,903) (343,371)
-------------------------------------------------
Total Shareholders' Equity 24,159,924 21,774,168 22,682,362
-------------------------------------------------
Total Liabilities and Shareholders' Equity $ 235,844,775 $ 219,512,531 $ 223,017,707
=================================================
</TABLE>
See notes to consolidated financial statements.
<PAGE> 4
First American Bancorp and Subsidiary
Unaudited Consolidated Statements of Income
For the three month periods and the nine month periods ended September 30, 1997,
and September 30, 1996
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
September 30, September 30,
1997 1996 1997 1996
----------------------------------------------------------
<S> <C> <C> <C> <C>
Interest and fees on loans $ 4,875,888 $ 4,343,390 $ 13,878,571 $ 11,502,213
Interest on investment securities:
Taxable 256,355 347,589 826,077 1,205,614
Exempt from Federal income tax 130,288 149,010 401,546 437,707
Interest on Federal funds sold and
interest-bearing deposits in other banks 41,927 2,030 63,051 39,920
----------------------------------------------------------
Total interest income 5,304,458 4,842,019 15,169,245 13,185,454
Interest expense:
Interest on deposits 2,022,816 1,767,657 5,782,845 5,431,568
Interest on debt and Federal funds purchased 201,556 291,746 623,066 366,565
Interest on obligations under Capitalized leases 2,478 2,983 7,823 9,309
----------------------------------------------------------
Total interest expense 2,226,850 2,062,386 6,413,734 5,807,442
Provision for loan losses 309,396 215,312 1,961,453 441,525
----------------------------------------------------------
Net interest income after provision
for loan losses 2,768,212 2,564,321 6,794,058 6,936,487
----------------------------------------------------------
Noninterest revenues:
Service charges on deposits 297,979 266,524 873,178 796,275
Other operating revenues 213,871 159,318 532,695 452,024
Net securities gains (losses) 6,497 (28,166) 14,391 (41,918)
----------------------------------------------------------
Total noninterest revenues 518,347 397,676 1,420,264 1,206,381
Noninterest expenses:
Salaries and employee benefits 1,139,522 1,118,148 3,369,886 3,084,920
Occupancy, furniture and equipment 314,804 346,504 867,508 1,047,311
Other operating expenses 844,068 517,577 2,240,372 1,418,403
----------------------------------------------------------
Total noninterest expenses 2,298,394 1,982,229 6,477,766 5,550,634
Income before income taxes 988,165 979,768 1,736,556 2,592,234
Provision for income taxes 476,746 325,062 611,726 822,901
----------------------------------------------------------
Net income $ 511,419 $ 654,706 $ 1,124,830 $ 1,769,333
==========================================================
Earnings per Common Share $ 0.18 $ 0.23 $ 0.39 $ 0.63
Earnings per Common Share assuming dilution $ 0.17 $ 0.23 $ 0.38 $ 0.61
</TABLE>
See notes to consolidated financial statements.
<PAGE> 5
First American Bancorp and Subsidiary
Unaudited Consolidated Statements of Cash Flows
For the nine month periods ended September 30, 1997 and September 30, 1996
<TABLE>
<CAPTION>
1997 1996
-------------------------------
<S> <C> <C>
Cash flows from operating activities $ 3,591,262 $ 1,205,420
Cash flows from investing activities:
Proceeds from sale of securities available for sale 4,390,023 13,989,412
Proceeds from the maturity of securities
available for sale 771,871 3,182,401
Purchase of securities available for sale (3,484,206) (6,218,019)
Net loans made to customers (7,118,626) (41,641,521)
Capital expenditures (231,477) (1,153,557)
Proceeds from sale of bank premises and equipment 932
Proceeds from sale of other real estate 46,240 33,767
--------------------------------
Cash flows used by investing activities (5,625,243) (31,807,517)
Cash flows from financing activities:
Net (decrease) increase in demand deposit accounts (2,771,470) 288,357
Net increase in certificates of deposit and other
time and savings deposits 15,080,402 13,580,668
Net (decrease) increase in Federal funds purchased (1,325,000) 3,950,000
Payment of capital lease obligation (19,403) (17,916)
Proceeds from issuance of debt 12,500,000
Repayment of debt (81,996)
Proceeds from issuance of common stock 105,000 145,867
Distribution for fractional shares (3,332) (3,326)
-------------------------------
Cash flows provided by financing activities 10,984,201 30,443,650
Net increase (decrease) in cash and cash equivalents 8,950,220 (158,447)
Cash and cash equivalents at beginning of period 8,319,830 9,557,841
-------------------------------
Cash and cash equivalents at end of period $ 17,270,050 $ 9,399,394
===============================
</TABLE>
See notes to consolidated financial statements.
<PAGE> 6
First American Bancorp and Subsidiary
Notes to Consolidated Financial Statements
September 30, 1997 and 1996
Note 1 - Basis of Presentation
The accounting policies followed by the Company are set forth in Note 1
of the Company's financial statements contained in the Annual Report to
Shareholders for the year ended December 31, 1996.
The condensed consolidated financial statements and notes are presented
as permitted by Form 10-Q, and do not contain certain information included in
the Company's audited financial statements and notes for the year ended December
31, 1996. In the opinion of management, the accompanying unaudited consolidated
financial statements contain all adjustments (consisting of only normal
recurring accruals) necessary for a fair presentation.
The results of operations for the nine months ended September 30, 1997
and 1996 are not necessarily indicative of the results to be expected for the
full year.
Note 2 - Stock Split
Earnings per weighted average number of shares outstanding in 1997 reflect
a 5 for 4 stock split effected in the form of a stock dividend paid to
shareholders of record on April 11, 1997. Earnings per weighted average number
of shares outstanding in 1996 reflect an 11 for 10 stock split effected in the
form of a stock dividend paid to shareholders on April 2, 1996 and a 5 for 4
stock split effected in the form of a stock dividend to shareholders on April
11, 1997.
Note 3 - Adoption of Statement of Financial Accounting Standards
The Company will adopt Statement of Financial Accounting Standards
(SFAS) Number 128, Earnings Per Share, which establishes standards of computing
and presenting earnings per share (EPS) and applies to entities with publicly
held common stock or potential common stock. This statement replaces the
presentation of primary EPS with a presentation of basic EPS and requires dual
presentation of basic and diluted EPS on the face of the income statement for
all entities with complex capital structures and requires a reconciliation of
the numerator and denominator of the basic EPS computation to the numerator and
denominator of the diluted EPS computation.
This statement is effective for financial statements issued for periods
ending after December 31, 1997, including interim periods; earlier application
is not permitted.
<PAGE> 7
Note 4 - Reconciliation of Earnings per common share and Earnings per common
share assuming dilution
<TABLE>
<CAPTION>
For the nine months ended September 30, 1997
Income Shares Per-Share
(Numerator) (Denominator) Amount
<S> <C> <C> <C>
Income available to common shareholders $1,124,829
Basic EPS 1,124,829 2,870,334 $ 0.39
==========
Effects of Dilutive Securities Options 99,448
---------
Dilutive EPS $1,124,829 2,969,782 $ 0.38
==========================================
For the quarter ended September 30, 1997
Income Shares Per-Share
(Numerator) (Denominator) Amount
Income available to common shareholders $ 511,418
Basic EPS 511,418 2,878,616 $ 0.18
==========
Effects of Dilutive Securities Options 101,234
---------
Dilutive EPS $ 511,418 2,979,850 $ 0.17
==========================================
For the nine months ended September 30, 1996
Income Shares Per-Share
(Numerator) (Denominator) Amount
Income available to common shareholders $1,769,333
Basic EPS 1,769,333 2,817,798 $ 0.63
==========
Effects of Dilutive Securities Options 78,779
---------
Dilutive EPS $1,769,333 2,896,577 $ 0.61
==========================================
For the quarter ended September 30, 1996
Income Shares Per-Share
(Numerator) (Denominator) Amount
Income available to common shareholders $ 654,706
Basic EPS 654,706 2,822,131 $ 0.23
==========
Effects of Dilutive Securities Options 78,208
---------
Dilutive EPS $ 654,706 2,900,339 $ 0.23
==========================================
</TABLE>
Items 2 - Management's Discussion and Analysis of
Financial Condition and Results of Operations
The following discussion is presented to aid in an understanding of the
Company's financial condition and results of operations for the third quarter of
1997.
The Company reported earnings of $511,000 during the third quarter of
1997 compared with $655,000 during the third quarter of 1996 which is a 22.0%
decrease from 1996 to 1997. Net income per share during the third quarter of
1997 was $0.18 compared to net income per share of $0.23 during the third
quarter of 1996 a decrease of $0.05 per share. The earnings per share in 1996
have been restated to reflect a 5 for 4 stock split effected in the form of a
stock dividend paid in 1997.
Distribution of Assets, Liabilities and Shareholder's Equity
Total assets increased 7.4% to $235.8 million at September 30, 1997 from
$219.5 million at September 30, 1996, and 5.7% from $223.0 million at December
31, 1996. This increase was a result of the 7.5% increase in earning assets
which included increases in federal funds sold , loans, net of unearned income,
and mortgage loans held for sale.
<PAGE> 8
Securities available for sale decreased to $27.8 million at September
30, 1997 from $30.6 million at June 30, 1996, a 9.2% decrease. The decrease in
the portfolio was primarily to fund the Company's loan growth and the departure
of higher cost public deposits as discussed below.
At September 30, 1997, the Bank held the following types of structured
notes and derivatives in its investment portfolio: Step-up bonds, dual index
notes, and collateralized mortgage obligations. Liquidity, interest rate risk,
yield, and extension risk are all considerations in holding these types of
securities. The Bank periodically evaluates these securities to determine the
effect that various interest rate changes have on the market value of these
securities. The Bank understands that changing interest rates impact the market
value of the security and its average life. The duration of these securities are
monitored in relation to the overall portfolio. This evaluation also addresses
the possible impact on the Bank's earnings and capital resulting from rate
changes. The potential carrying amount recoverability is also reviewed on a
regular basis. The Bank holds no securities whose ultimate principal redemption
would be less than par.
Loans, net of unearned income, grew to $178.5 million at September 30,
1997 from $168.3 million at September 30, 1996, or 6.1%. During the third
quarter of 1997, loans, net of unearned income, increased to $178.5 million from
$173.0 million at December 31, 1996, a 3.2% increase.
Reserve for loan losses increased 63.6% to $2.6 million at September 30,
1997 from $1.6 million at September 30, 1996. Loan loss reserve as a percent of
loans, net of unearned income was 1.48% at September 30, 1997, compared to 0.96%
at September 30, 1996 and 0.98% at December 31, 1996. Management believes the
loan loss reserve is adequate at this time, given the Bank's low historical loan
loss ratio. See additional discussion under "Results of Operations".
Bank premises and equipment decreased to $7.8 million at September 30,
1997 from $8.0 million at September 30, 1996, primarily as a result of
depreciation expense during 1997. Bank premises and equipment decreased 1.0%
from December 31, 1996.
Total deposits at September 30, 1997 were $195.7 million compared with
$179.2 million a year earlier, reflecting a 9.2% increase. Total deposits
increased 6.7% from $183.4 million at December 31, 1996. Interest bearing demand
deposits decreased $2.9 million from September 30, 1996. The decrease in
interest bearing demand deposits from September 30, 1996 to September 30, 1997
was offset by increases of $7.9 million in certificates of deposits greater than
$100,000 and $11.3 million in other time deposits during the same period due to
increased efforts to raise deposits. Certificates of deposit greater than
$100,000 increased 27.8% to $32.6 million at September 30, 1997 from $25.5
million as of December 31, 1997. At September 30, 1997, the Company had $12.5
million in borrowings from the Federal Home Loan Bank (FHLB). The $12.5 million
FHLB debt has an interest rate of one month LIBOR (London interbank offered
rate) minus three basis points, equating to 5.626% at September 30, 1997, and
matures June 5, 1998.
Shareholders' equity increased to $24.2 million at September 30, 1997,
an 11.0% increase from $21.8 million at September 30, 1996. Shareholders' equity
increased 6.6% from $22.7 million at December 31, 1996. The increase from
December 31, 1996 was due to the Company's net income of $1.1 million in the
nine months ended September 30, 1997. Also contributing to the increase in
shareholders' equity was the mark-to-market adjustment for specific securities
designated as available for sale of $165,000 at September 30, 1997, a decrease
of $178,000 from $343,000 at December 31, 1996. The mark-to-market adjustment
decreased $440,000 from September 30, 1996.
<PAGE> 9
At September 30, 1997, the equity capital to asset ratio was 10.2%. At
September 30, 1996, this ratio was 9.9%; and at December 31, 1996, it was 10.2%.
The current risk based capital ratios well exceed the risk based capital
guidelines established by banking regulators as illustrated below:
<TABLE>
<CAPTION>
At September 30, Minimum Regulatory
1997 Requirements
---------------- ------------------
<S> <C> <C>
Risk-based capital:
Tier I capital ratio 12.71% 4.00%
Total capital ratio 13.96% 8.00%
Leverage Ratio 10.35% 3.00 to 5.00%
</TABLE>
Asset and Liability Management, Liquidity and Capital Resources
Through its asset liability management plan, management maintains
adequate liquidity to satisfy the Company's day to day cash flow requirements
and has available adequate liquidity sources to satisfy seasonal fluctuations.
Results of Operations
During the third quarter of 1997, earnings were $511,000, compared with
third quarter earnings during 1996 of $655,000, a 22.0% decrease, which resulted
primarily from increased noninterest expenses and provision for loan losses.
For the three month period ending September 30, 1997 gross interest
margin improved $298,000, or 10.7%, to $3,078,000, compared to $2,780,000 at
September 30, 1996. When compared with the three month period ended September
30, 1996, the changes in the volume and mix of earning assets and
interest-bearing liabilities as well as the current rate environment helped
improve the gross interest margin during the third quarter of 1997.
Interest and fees on loans increased $532,000, or 12.3%, due to growth
in loan volume during the third quarter. Interest on investment securities
decreased 22.1%, or $110,000, due to the decrease in the investment portfolio to
fund the Company's loan growth.
Interest expense on deposits increased $255,000, or 14.4%, at September
30, 1997, compared to September 30, 1996, as interest bearing deposits (interest
bearing demand deposits, certificates of deposit, etc.) increased $16.2 million
during the same period. The increase in deposit interest expense was offset by a
decrease of interest expense on other borrowed money of $90,000 when comparing
September 30, 1997 to September 30, 1996. This decrease was a result of improved
liquidity which enabled the Company to purchase less federal funds during the
third quarter of 1997 than in the third quarter of 1996.
The provision for loan losses increased by $94,000 during the third
quarter of 1997 when compared with the third quarter of 1996. The provision for
loan losses increased by $1,520,000 at September 30, 1997 compared to September
30, 1996. During 1997, the Company's loan loss experience has been greater than
the Company's historical loss experience. For the nine months ended September
30, 1997, the Company had gross loan charge-offs of $1,109,000 compared with
$389,000 for the nine months ended September 30, 1996, an increase of $720,000
or 185.1%. Due to the increased loss experience, management has reevaluated the
loan portfolio utilizing measurement criteria reflecting the increased 1997
charge-offs in an attempt to identify any future potential losses. As a result
of management's evaluation the Company has increased its allowance for loan
losses to $2,649,000 at September 30, 1997 an increase of 63.6% from $1,619,000
at September 30, 1996 and an increase of 56.8% from $1,689,000 at December 31,
1996. With the ratio of the reserve for loan losses to loans net of unearned
income at September 30, 1997 of 1.48%, management believes that this allocation
to loan loss reserve provides an adequate reserve for the risk in the current
loan portfolio.
<PAGE> 10
Total noninterest revenues during the third quarter of 1997 increased
$115,000, or 28.4%, primarily as a result of increased service charges on
deposit accounts.
Total noninterest expenses during the third quarter of 1997 increased
$121,000, or 30.3%, due to increases in salaries and employee benefits, other
operating expenses, and occupancy, furniture and equipment expenses.
Income before income taxes increased $8,000 at September 30, 1997 when
compared to September 30, 1996. Income tax expense for the third quarter of 1997
compared to 1996 increased $152,000, or 46.7%, primarily as a result of
increased income from a subsidiary of the Company which traditionally has a
higher effective tax rate.
Part II
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 - Exhibits and Reports on Form 8-K
(a) Exhibits
Exhibit 27 Financial Data Schedule (for SEC use only)
(b) Reports on Form 8-K
None.
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereto duly authorized.
First American Bancorp
Date: November 14, 1997 by /s/ DAN M. DAVID
----------------------------
Dan M. David
Chairman and Chief
Executive Officer
Date: November 14, 1997 by /s/ ALFRED E. CHEATHAM, JR.
----------------------------
Alfred E. Cheatham, Jr.
Vice President and
Chief Financial Officer
<TABLE> <S> <C>
<ARTICLE> 9
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FINANCIAL STATEMENTS OF FIRST AMERICAN BANCORP FOR THE 9 MONTH PERIOD ENDED
SEPTEMBER 30, 1997 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH
FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-1-1997
<PERIOD-END> SEP-30-1997
<CASH> 9,413,389
<INT-BEARING-DEPOSITS> 31,661
<FED-FUNDS-SOLD> 7,825,000
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 27,763,101
<INVESTMENTS-CARRYING> 0
<INVESTMENTS-MARKET> 0
<LOANS> 178,451,784
<ALLOWANCE> 2,648,867
<TOTAL-ASSETS> 235,844,775
<DEPOSITS> 195,731,469
<SHORT-TERM> 13,523,004
<LIABILITIES-OTHER> 2,430,378
<LONG-TERM> 0
0
0
<COMMON> 28,787
<OTHER-SE> 24,131,137
<TOTAL-LIABILITIES-AND-EQUITY> 235,844,775
<INTEREST-LOAN> 13,878,571
<INTEREST-INVEST> 1,227,623
<INTEREST-OTHER> 63,051
<INTEREST-TOTAL> 15,169,245
<INTEREST-DEPOSIT> 5,782,845
<INTEREST-EXPENSE> 6,413,734
<INTEREST-INCOME-NET> 8,755,511
<LOAN-LOSSES> 1,961,453
<SECURITIES-GAINS> 14,391
<EXPENSE-OTHER> 6,477,766
<INCOME-PRETAX> 1,736,556
<INCOME-PRE-EXTRAORDINARY> 1,124,830
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,124,830
<EPS-PRIMARY> 0.39
<EPS-DILUTED> 0.38
<YIELD-ACTUAL> 9.81
<LOANS-NON> 1,441,000
<LOANS-PAST> 239,000
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 239,000
<ALLOWANCE-OPEN> 1,689,000
<CHARGE-OFFS> 1,108,000
<RECOVERIES> 107,000
<ALLOWANCE-CLOSE> 2,649,000
<ALLOWANCE-DOMESTIC> 2,649,000
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
