U.S. SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10Q-SB
(Mark One)
X QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
--- ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 1998
--- TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM _______________
TO ___________
Commission File Number 000-21671
------------
THE NATIONAL BANK OF INDIANAPOLIS CORPORATION
----------------------------------------------
(Name of Small Business Issuer in its charter)
INDIANA 35-1887991
------------------------ ---------------------
(State of incorporation) I.R.S. Employer
Identification Number
107 N. PENNSYLVANIA STREET, SUITE 700, INDIANAPOLIS, INDIANA 46204
------------------------------------------------------------------
(Address of principal executive offices and zip code)
(317) 261-9000
--------------
(Issuer's telephone number)
Check whether the issuer (1) filed all reports required to be filed by Section
13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter
period that the registrant was required to file such reports), and (2) has been
subject to such filing requirements for the past 90 days.
Yes X No
----- -----
As of September 30, 1998, there were 1,908,279 Common Shares outstanding.
Transitional Small Business Disclosure Format (Check one):
Yes No X
----- -----
<PAGE>
TABLE OF CONTENTS
THE NATIONAL BANK OF INDIANAPOLIS CORPORATION
Report on Form 10Q-SB
for Quarter Ended
September 30, 1998
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements (Unaudited)
Consolidated Balance Sheets - September 30, 1998
and December 31, 1997.................................. 1
Consolidated Statements of Operations - Three months
ended September 30, 1998 and 1997...................... 2
Consolidated Statements of Operations - Nine months
ended September 30, 1998 and 1997...................... 3
Consolidated Statements of Cash Flows - Nine months
ended September 30, 1998 and 1997...................... 4
Notes to Consolidated Financial Statements................. 5
Item 2. Management's Discussion and Analysis....................... 6-9
PART II - OTHER INFORMATION
Item 1. Legal Proceedings.......................................... 10
Item 2. Changes in Securities...................................... 10
Item 3. Default 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........................... 10
Signatures ........................................................... 10
<PAGE>
The National Bank of Indianapolis Corporation
Consolidated Balance Sheets
<TABLE>
<CAPTION>
SEPTEMBER 30 DECEMBER 31
1998 1997
(UNAUDITED) (NOTE)
ASSETS --------------------------------
<S> <C> <C>
Cash and due from banks $ 22,368,274 $ 11,446,150
Federal funds sold 29,250,000 15,425,000
Investment securities:
Available-for-sale securities 65,238,877 40,846,522
Held-to-maturity securities 12,672,089 13,466,686
--------------------------------
Total investment securities 77,910,966 54,313,208
Loans 207,350,265 157,905,008
Less: Allowance for loan losses (2,411,306) (1,963,040)
--------------------------------
Net loans 204,938,959 155,941,968
Premises and equipment 3,906,867 3,707,907
Accrued interest receivable 1,697,604 1,685,761
Other assets 1,807,604 546,714
--------------------------------
Total assets $ 341,880,274 $ 243,066,708
================================
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits:
Noninterest-bearing demand deposits $ 49,429,698 $ 33,601,383
Money market and savings deposits 125,476,137 82,651,421
Time deposits over $100,000 40,432,557 33,384,744
Other time deposits 68,811,194 53,596,091
--------------------------------
Total deposits 284,149,586 203,233,639
Security repurchase agreements 29,026,790 19,341,555
FHLB advances 8,000,000 2,000,000
Other liabilities 1,784,185 1,097,267
--------------------------------
Total liabilities 322,960,561 225,672,461
Shareholders' equity:
Common stock, no par value:
Authorized shares - 3,000,000
Issued and outstanding shares; 1998 - 1,908,279;
1997 - 1,901,433 19,747,320 19,661,133
Unearned compensation (523,715) (699,942)
Retained earnings-deficit (286,150) (1,567,392)
Accumulated comprehensive income (loss) (17,742) 448
--------------------------------
Total shareholders' equity 18,919,713 17,394,247
--------------------------------
Total liabilities and shareholders' equity $ 341,880,274 $ 243,066,708
================================
</TABLE>
Note: The balance sheet at December 31, 1997 has been derived from the audited
financial statements at that date but does not include all of the information
and footnotes required by generally accepted accounting principles for complete
financial statements. See notes to condensed consolidated financial statements.
1
<PAGE>
The National Bank of Indianapolis Corporation
Consolidated Statements of Income
(Unaudited)
<TABLE>
<CAPTION>
THREE MONTHS ENDED
SEPTEMBER 30
1998 1997
--------------------------------
<S> <C> <C>
Interest income:
Interest and fees on loans $ 4,028,471 $ 2,893,933
Interest on investment securities 1,093,171 861,069
Interest on federal funds sold 402,617 331,054
--------------------------------
Total interest income 5,524,259 4,086,056
Interest expense:
Interest on deposits 2,873,741 2,151,618
Interest on repurchase agreements 342,370 217,568
Interest on FHLB advances 57,238 32,711
--------------------------------
Total interest expense 3,273,349 2,401,897
--------------------------------
Net interest income 2,250,910 1,684,159
Provision for loan losses 156,000 156,000
--------------------------------
Net interest income after provision for loan losses 2,094,910 1,528,159
Other operating income:
Trust fees and commissions 235,009 183,804
Service charges and fees on deposit accounts 81,161 58,976
Net gain on sale of mortgage loans 71,799 22,096
Other 151,705 73,599
--------------------------------
Total other operating income 539,674 338,475
Other operating expenses:
Salaries, wages and employee benefits 1,165,790 880,954
Net occupancy expense 174,586 126,498
Furniture and equipment expense 142,277 113,171
Professional services 108,308 95,245
Data processing 113,318 95,517
Other expenses 346,944 258,597
--------------------------------
Total other operating expenses 2,051,223 1,569,982
--------------------------------
Net income $ 583,361 $ 296,652
================================
Basic earnings per share $ 0.31 $ 0.16
================================
Diluted earnings per share $ 0.29 $ 0.15
================================
</TABLE>
Note: See notes to condensed consolidated financial statements.
2
<PAGE>
The National Bank of Indianapolis Corporation
Consolidated Statements of Income
(Unaudited)
<TABLE>
<CAPTION>
NINE MONTHS ENDED
SEPTEMBER 30
1998 1997
--------------------------------
<S> <C> <C>
Interest income:
Interest and fees on loans $ 11,023,209 $ 8,208,962
Interest on investment securities 3,016,175 2,336,272
Interest on federal funds sold 1,215,430 750,845
--------------------------------
Total interest income 15,254,814 11,296,079
Interest expense:
Interest on deposits 7,885,696 5,958,216
Interest on repurchase agreements 953,271 476,958
Interest on FHLB advances 121,594 97,067
--------------------------------
Total interest expense 8,960,561 6,532,241
--------------------------------
Net interest income 6,294,253 4,763,838
Provision for loan losses 468,000 468,000
--------------------------------
Net interest income after provision for loan losses 5,826,253 4,295,838
Other operating income:
Trust fees and commissions 670,647 492,249
Service charges and fees on deposit accounts 229,917 169,134
Net gain on sale of mortgage loans 143,555 15,464
Other 369,321 195,884
--------------------------------
Total other operating income 1,413,440 872,731
Other operating expenses:
Salaries, wages and employee benefits 3,319,079 2,479,062
Net occupancy expense 474,241 379,133
Furniture and equipment expense 379,763 325,279
Professional services 337,031 268,116
Data processing 329,684 268,193
Other expenses 1,118,653 739,712
--------------------------------
Total other operating expenses 5,958,451 4,459,495
--------------------------------
Net income $ 1,281,242 $ 709,074
================================
Basic earnings per share $ 0.69 $ 0.39
================================
Diluted earnings per share $ 0.64 $ 0.37
================================
</TABLE>
Note: See notes to condensed consolidated financial statements.
3
<PAGE>
The National Bank of Indianapolis Corporation
Consolidated Statements of Cash Flows
(Unaudited)
<TABLE>
<CAPTION>
NINE MONTHS ENDED
SEPTEMBER 30
1998 1997
----------------------------------
<S> <C> <C>
OPERATING ACTIVITIES
Net income $ 1,281,242 $ 709,074
Adjustments to reconcile net income to net cash provided
(used) by operating activities:
Provision for loan losses 468,000 468,000
Depreciation and amortization 433,507 380,176
Net accretion of investments (1,036,808) (320,297)
(Increase) decrease in:
Interest receivable (11,843) (273,468)
Other assets (1,247,777) 117,302
Increase in:
Other liabilities 686,918 148,076
----------------------------------
Net cash provided by operating activities 573,239 1,228,863
INVESTING ACTIVITIES
Net change in federal funds sold (13,825,000) (2,350,000)
Proceeds from maturities of investment securities held to
maturity 1,958,850 4,212,943
Proceeds from maturities of investment securities
available for sale 64,269,865 41,031,489
Purchases of investment securities held to maturity (1,117,056) (5,431,425)
Purchases of investment securities available for sale (87,703,912) (56,820,221)
Net increase in loans (49,464,991) (25,187,948)
Purchases of premises and equipment (632,467) (591,041)
----------------------------------
Net cash used by investing activities (86,514,711) (45,136,203)
FINANCING ACTIVITIES
Net increase in deposits 80,915,947 28,479,716
Increase in security repurchase agreements 9,685,235 7,357,461
Increase in FHLB borrowings 6,000,000 -
Proceeds from issuance of stock 262,414 249,002
----------------------------------
Net cash provided by financing activities 96,863,596 36,086,179
----------------------------------
Increase (decrease) in cash and cash equivalents 10,922,124 (7,821,161)
Cash and cash equivalents at beginning of year 11,446,150 14,776,994
----------------------------------
Cash and cash equivalents at end of period $ 22,368,274 $ 6,955,833
==================================
Interest paid $ 9,217,701 $ 2,207,168
==================================
</TABLE>
Note: See notes to condensed consolidated financial statements.
4
<PAGE>
THE NATIONAL BANK OF INDIANAPOLIS
CORPORATION
Notes to Consolidated Financial Statements
September 30, 1998
NOTE 1: BASIS OF PRESENTATION
The accompanying unaudited condensed consolidated financial statements have been
prepared in accordance with generally accepted accounting principles for interim
financial information and with the instructions to Form 10-QSB and Article 10 of
Regulation S-X. Accordingly, they do not include all of the information and
footnotes required by generally accepted accounting principles for complete
financial statements. 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 nine month period ended September 30,
1998 is not necessarily indicative of the results that may be expected for the
year ended December 31, 1998. For further information, refer to the consolidated
financial statements and footnotes thereto included in The National Bank of
Indianapolis Corporation's ("Corporation") Form 10-KSB for the year ended
December 31, 1997.
NOTE 2: NEW ACCOUNTING PRONOUNCEMENTS
As of January 1, 1998, the Corporation adopted Statement 130, "Reporting
Comprehensive Income". Statement 130 establishes new rules for the reporting and
display of comprehensive income and its components; however, the adoption of
this Statement had no impact on the Corporation's net income. Statement 130
requires unrealized gains or losses on the Corporation's available-for-sale
securities, which prior to adoption were reported separately in shareholders'
equity, to be included in other comprehensive income. Prior year financial
statements have been reclassified to conform to the requirements of Statement
130.
For the three months ended September 30, 1998 and 1997, total comprehensive
income amounted to $536,340 and $326,840. For the nine months ended September
30, 1998 and 1997, total comprehensive income amounted to $1,263,052 and
$778,980.
5
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATION
RESULTS OF OPERATIONS
Nine months Ended September 30, 1998 Compared to the Nine months Ended September
30, 1997:
The Corporation's results of operations depend primarily on the level of its net
interest income, its non-interest income and its operating expenses. Net
interest income depends on the volume of and rates associated with interest
earning assets and interest bearing liabilities which results in the net
interest spread. The Corporation had net income of $1,281,242 for the nine
months ended September 30, 1998, compared to net income of $709,074 for the nine
months ended September 30, 1997. This change is primarily due to the growth of
The National Bank of Indianapolis ("Bank") allowing for more interest earning
assets and net interest income compared to the same period during 1997, thereby
offsetting more of the operating expenses.
Net Interest Income
- -------------------
Net interest income increased $1,530,415 or 32.1% to $6,294,253 for the nine
months ended September 30, 1998, from $4,763,838 for the nine months ended
September 30, 1997. Total interest income increased $3,958,735 for the nine
months ended September 30, 1998, to $15,254,814 from $11,296,079 for the nine
months ended September 30, 1997. This increase is primarily a result of average
total loans for the nine months ended September 30, 1998, being approximately
$181,000,000 compared to average total loans of approximately $134,000,000 for
the nine months ended September 30, 1997. Of the total $47,000,000 increase,
commercial loans increased approximately $28,000,000 and residential mortgages
increased approximately $16,000,000. The loan portfolio produces the highest
yield of all earning assets.
Investment portfolio income increased $679,903 or 29.1% to $3,016,175 for the
nine months ended September 30, 1998, as compared to $2,336,272 for the nine
months ended September 30, 1997. This increase is primarily a result of the
increase in the average investment securities portfolio from approximately
$52,000,000 for the nine months ended September 30, 1997, to approximately
$68,000,000 for the nine months ended September 30, 1998. Interest on federal
funds sold increased due to an increase in average federal funds sold of
approximately $11,000,000 for the nine months ended September 30, 1998, over the
same period the previous year.
Total interest expense increased $2,428,320 or 37.2% to $8,960,561 for the nine
months ended September 30, 1998, from $6,532,241 for the nine months ended
September 30, 1997. This increase is due to an increase in interest bearing
deposits and advances from the FHLB. Total interest bearing liabilities averaged
approximately $237,000,000 for the nine months ended September 30, 1998, as
compared to approximately $173,000,000 for the nine months ended September 30,
1997. The weighted average cost of interest bearing liabilities at September 30,
1998 and September 30, 1997, was approximately 5.0%.
6
<PAGE>
Provision for Loan Losses
- -------------------------
The amount charged to the provision for loan losses by the Bank is based on
management's evaluation as to the amounts required to maintain an allowance
adequate to provide for potential losses inherent in the loan portfolio. The
level of this allowance is dependent upon the total amount of past due and
non-performing loans, general economic conditions and management's assessment of
potential losses based upon internal credit evaluations of loan portfolios and
particular loans. Loans are entirely to borrowers in central Indiana.
During the nine months ended September 30, 1998 and September 30, 1997, $468,000
was charged to the provision for loan losses. At September 30, 1998, the
allowance was $2,411,306 or 1.16% of total loans. This compares to an allowance
of $1,823,800 or 1.20% as of September 30, 1997.
Other Operating Income
- ----------------------
Other operating income for the nine months ended September 30, 1998, increased
$504,709 or 62.0% to $1,413,440 from $872,731 for the nine months ended
September 30, 1997. The increase is primarily due to an increase in service
charges and fees on deposit accounts of $60,783 or 35.9% from $169,134 for the
nine months ended September 30, 1997, to $229,917 for the nine months ended
September 30, 1998. This increase is attributable to the increase in average
demand deposit accounts of $9,000,000 from approximately $26,000,000 at
September 30, 1997, to approximately $35,000,000 at September 30, 1998. The
increase in other operating income is also attributable to an increase in trust
fees and commissions of $178,398 or 36.2% from $492,249 for the nine months
ended September 30, 1997, to $670,647 for the nine months ended September 30,
1998. The increase in trust income is attributable to the increase in total
assets under trust management of approximately $48,000,000 from approximately
$260,000,000 at September 30, 1997, to approximately $308,000,000 at September
30, 1998. Another contributing factor to increased other operating income is the
gain on the sale of mortgage loans of $143,555 for the nine months ended
September 30, 1998 compared to $15,464 for the nine months ended September 30,
1997.
Other Operating Expenses
- ------------------------
Other operating expenses for the nine months ended September 30, 1998, increased
$1,498,956 or 33.6% to $5,958,451 from $4,459,495 for the nine months ended
September 30, 1997. Salaries, wages and employee benefits increased $840,017 or
33.9% to $3,319,079 for the nine months ended September 30, 1998, from
$2,479,062 for the nine months ended September 30, 1997. This increase is
primarily due to the increase in the number of employees from 67 full time
equivalents at September 30, 1997, to 84 full time equivalents at September 30,
1998. Net occupancy expense increased $95,108 and furniture and equipment
expense increased $54,484 for the nine months ended September 30, 1998, over the
same period the previous year primarily due to the opening of a new branch at
49th and Pennsylvania and expansion of leased space at the downtown location.
Professional services expense increased $68,915 or 25.7% from $268,116 for the
nine months ended September 30, 1997, to $337,031 for the nine months ended
September 30, 1998. Data processing expenses increased $61,491 for the nine
months ended September 30, 1998, over the same period the previous year
primarily due to increased service bureau fees relating to increased transaction
activity by the Bank and trust department.
7
<PAGE>
LIQUIDITY AND INTEREST RATE SENSITIVITY
The Corporation must maintain an adequate liquidity position in order to respond
to the short-term demand for funds caused by withdrawals from deposit accounts,
extensions of credit and for the payment of operating expenses. Maintaining this
position of adequate liquidity is accomplished through the management of a
combination of liquid assets - those which can be converted into cash - and
access to additional sources of funds. Primary liquid assets of the Corporation
are cash and due from banks, federal funds sold, investments held as "available
for sale" and maturing loans. Federal funds sold represent the Corporation's
primary source of immediate liquidity and were maintained at a level adequate to
meet immediate needs. Federal funds averaged approximately $29,000,000 and
$18,000,000 for the nine months ended September 30, 1998 and 1997, respectively.
Maturities in the Corporation's loan and investment portfolios are monitored
regularly to avoid matching short-term deposits with long-term loans and
investments. Other assets and liabilities are also monitored to provide the
proper balance between liquidity, safety, and profitability. This monitoring
process must be continuous due to the constant flow of cash which is inherent in
a financial institution.
The Corporation actively manages its interest rate sensitive assets and
liabilities to reduce the impact of interest rate fluctuations. At September 30,
1998, the Corporation's rate sensitive liabilities exceeded rate sensitive
assets due within one year by $21,734,836.
As part of managing liquidity, the Corporation monitors its loan to deposit
ratio (including repurchase agreements) on a daily basis. At September 30, 1998,
the ratio was 66.2 percent which is within the Corporation's acceptable range.
The Corporation experienced an increase in cash and cash equivalents, its
primary source of liquidity, of $10,922,124 during the first nine months of
1998. The primary financing activity of deposit and repurchase agreement growth
provided net cash of $90,601,182. Lending used $49,469,991, investments used
$22,592,253, and increasing federal funds sold used $13,825,000. The
Corporation's management believes its liquidity sources are adequate to meet its
operating needs and does not know of any trends, events or uncertainties that
may result in a significant adverse effect on the Corporation's liquidity
position.
8
<PAGE>
CAPITAL RESOURCES
The Corporation's only source of capital since commencing operations has been
from issuance of common stock and results of operations. It has not issued long
term debt nor does it have any long term debt facility arrangements. The Bank
has incurred indebtedness pursuant to a FHLB advance of $2,000,000 at a rate of
6.40% maturing August 1, 2001 and $6,000,000 at a rate of 5.66% maturing
September 4, 2003. The Bank may add indebtedness of this nature in the future if
determined to be in the best interest of the Bank. Capital for the Corporation
is above regulatory requirements at September 30, 1998. Pertinent capital ratios
for the Corporation as of September 30, 1998 are as follows:
Minimum
Actual Requirements
------ ------------
Tier 1 risk-based capital ratio 8.4% 4.0%
Total risk-based capital ratio 10.0% 8.0%
Leverage ratio 6.0% 4.0%
Dividends from the Bank to the Corporation may not exceed the undivided profits
of the Bank (included in consolidated retained earnings) without prior approval
of a federal regulatory agency. In addition, Federal banking laws limit the
amount of loans the Bank may make to the Corporation, subject to certain
collateral requirements. No dividends were declared, or loans made, during 1998
or 1997 by the Bank to the Corporation.
YEAR 2000
The Corporation has compiled a year 2000 checklist. This checklist includes all
computer equipment and software currently used, with the most critical systems
being listed as top priority.
The assessment of year 2000 compliance has been completed and an action plan is
in place. Many systems are already in compliance and the remaining are scheduled
to be done by December 1998.
Since the Corporation does not have a main frame computer, the cost to become
year 2000 compliant in all operating systems and software is estimated to be
immaterial.
The Corporation's Board of Directors are updated quarterly on progress to date.
9
<PAGE>
OTHER INFORMATION
Item 1. Legal Proceedings
Neither The National Bank of Indianapolis Corporation nor its
subsidiary is a party to any material pending legal
proceedings, other than ordinary routine litigation incidental
to the registrant's business.
Item 2. Changes in Securities - Not applicable.
Item 3. Defaults Upon Senior Securities - Not applicable.
Item 4. Submission of Matters to a Vote of Security Holders - None.
Item 5. Other Information - Not applicable
Item 6. Exhibits and Reports on Form 8-K.
(a) Exhibits - Exhibit 27 - Financial Data Schedule
(b) Reports on Form 8-K - Not applicable
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.
THE NATIONAL BANK OF INDIANAPOLIS CORPORATION
November 10, 1998 /s/ Morris L. Maurer
- -------------------- -------------------------------------------
Date Morris L. Maurer
President & Chief Executive Officer
November 10, 1998 /s/ Debra L. Ross
- -------------------- -------------------------------------------
Date Debra L. Ross
Chief Financial Officer
10
<TABLE> <S> <C>
<ARTICLE> 9
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> SEP-30-1998
<CASH> 9,192,056
<INT-BEARING-DEPOSITS> 13,176,218
<FED-FUNDS-SOLD> 29,250,000
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 65,238,877
<INVESTMENTS-CARRYING> 12,672,089
<INVESTMENTS-MARKET> 12,849,055
<LOANS> 207,350,265
<ALLOWANCE> (2,411,306)
<TOTAL-ASSETS> 341,880,274
<DEPOSITS> 284,149,586
<SHORT-TERM> 29,026,790
<LIABILITIES-OTHER> 1,784,185
<LONG-TERM> 8,000,000
0
0
<COMMON> 19,223,605
<OTHER-SE> (303,892)
<TOTAL-LIABILITIES-AND-EQUITY> 341,880,274
<INTEREST-LOAN> 11,023,209
<INTEREST-INVEST> 3,016,175
<INTEREST-OTHER> 1,215,430
<INTEREST-TOTAL> 15,254,814
<INTEREST-DEPOSIT> 7,885,696
<INTEREST-EXPENSE> 8,960,561
<INTEREST-INCOME-NET> 6,294,253
<LOAN-LOSSES> 468,000
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 5,958,451
<INCOME-PRETAX> 1,281,242
<INCOME-PRE-EXTRAORDINARY> 1,281,242
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,281,242
<EPS-PRIMARY> 0.69
<EPS-DILUTED> 0.64
<YIELD-ACTUAL> 7.32
<LOANS-NON> 0
<LOANS-PAST> 0
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 1,963,040
<CHARGE-OFFS> 29,484
<RECOVERIES> 9,750
<ALLOWANCE-CLOSE> 2,411,306
<ALLOWANCE-DOMESTIC> 0
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 2,411,306
</TABLE>
