<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 25049
FORM 10-Q
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(D) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 1997
-----------------------------------------
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
--------------------- ------------------
Commission File Number 0-22734
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KS BANCORP, INC.
------------------------------------------------------
(Exact name of registrant as specified in its charter)
North Carolina 56-1842707
- ------------------------------- ------------------------------------
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
207 West Second Street
P. O. Box 219
Kenly, North Carolina 27542
--------------------------------------------------
(Address of principal executive office) (Zip code)
(919)-284-4157
-------------------------------
(Registrant's telephone number)
N/A
---------------------------------------------------------------------------
(Former name, former address and former fiscal year, if changed since last
report)
Indicate by check X whether the registrant (1) has filed all reports required to
be filed by Section 13 or 15(d) of the Securities and 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
------ -----
As of November 4, 1997 there were issued and outstanding 885,356 shares of the
Registrant's common stock, no par value.
<PAGE>
KS BANCORP, INC. AND SUBSIDIARY
CONTENTS
PART I - FINANCIAL INFORMATION Pages
-----
Item 1. Condensed Consolidated Financial Statements
Statements of financial condition at September 30, 1997
(Unaudited) and December 31, 1996 1-2
Statements of income for the three months ended
September 30, 1997 and September 30, 1996 (Unaudited) 3
Statements of income for the nine months ended
September 30, 1997 and September 30, 1996 (Unaudited) 4
Statements of cash flows for the nine months ended
September 30, 1997 and September 30, 1996 (Unaudited) 5-6
Notes to condensed consolidated financial statements 7
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 8-10
PART II - OTHER INFORMATION
Item 1. Legal Proceedings 11
Item 2. Changes in Securities 11
Item 3. Defaults upon Senior Securities 11
Item 4. Submission of Matters to a Vote of Security Holders 11
Item 5. Other Information 11
Item 6. Exhibits and Reports on Form 8-K 11
Signatures 12
<PAGE>
KS BANCORP, INC. and subsidiary
Condensed Consolidated Statements of Financial Condition
September 30, 1997 and December 31, 1996
<TABLE>
<CAPTION>
September 30, December 31,
ASSETS 1997 1996
- ------------------------------------------------------------------------------------------
(Unaudited)
<S> <C> <C>
Cash and short-term cash investments:
Interest-bearing $ 3,546,616 $ 5,680,182
Noninterest-bearing 442,458 480,054
Investment securities:
Held to maturity, at cost 2,000,000 2,501,080
Available for sale, at fair value 6,216,681 5,751,745
FHLB stock and other nonmarketable equity securities 790,300 724,700
Mortgage-backed securities, held to maturity, at cost 1,350,409 1,392,585
Loans receivable, net 92,627,268 81,510,872
Accrued interest receivable 700,212 559,305
Property and equipment, net 2,008,390 1,925,973
Real estate acquired in settlement of loans 63,291 65,714
Prepaid expenses and other assets 180,948 98,268
Refundable income taxes 10,625 149,558
-------------- --------------
TOTAL ASSETS $ 109,937,198 $ 100,840,036
============== ==============
</TABLE>
1
<PAGE>
<TABLE>
<CAPTION>
September 30, December 31,
LIABILITIES AND STOCKHOLDERS' EQUITY 1997 1996
- ----------------------------------------------------------------------------------------------------
(Unaudited)
<S> <C> <C>
Liabilities:
Deposits $ 8,6461,984 $ 82,345,925
Advances from Federal Home Loan Bank 8,000,000 4,000,000
Accounts payable and accrued expenses 205,173 189,145
Advance payments by borrowers for taxes and insurance 90,708 45,609
Deferred income taxes 62,543 538,318
-------------- --------------
TOTAL LIABILITIES 9,538,330 87,118,997
-------------- --------------
Stockholders' equity:
Preferred stock, no par value, authorized 5,000,000 shares;
none issued
Common stock, no par value, authorized 20,000,000 shares;
issued 885,356 in 1997 and 884,351 in 1996, respectively
Additional paid-in capital 5,203,550 5,161,212
Note receivable, ESOP (273,000) (273,000)
Unrealized gain on securities available 595,307 454,113
for sale, net of tax effect
Retained earnings, substantially restricted 9,028,040 8,378,714
-------------- --------------
TOTAL STOCKHOLDERS' EQUITY 14,553,897 13,721,039
-------------- --------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 109,937,198 $ 100,840,036
-------------- --------------
</TABLE>
See Notes to Condensed Consolidated Financial Statements.
2
<PAGE>
KS BANCORP, INC. and subsidiary
Condensed Consolidated Statements of Income (Unaudited)
Three Months Ended September 30, 1997 and 1996
<TABLE>
<CAPTION>
1997 1996
- --------------------------------------------------------------------
<S> <C> <C>
Interest and dividend income:
Loans $ 2,050,736 $ 1,721,568
Investment securities 130,515 131,862
Mortgage-backed securities 24,524 23,423
Interest-bearing deposits 26,478 21,566
------------ -----------
TOTAL INTEREST INCOME 2,232,253 1,898,419
Interest expense:
Deposits 1,085,572 965,852
Borrowings 120,925 52,478
------------ -----------
TOTAL INTEREST EXPENSE 1,206,497 1,018,330
------------ -----------
NET INTEREST INCOME 1,025,756 880,089
Provision for loan losses 19,000 20,500
------------ -----------
NET INTEREST INCOME AFTER PROVISION
FOR LOAN LOSSES 1,006,756 859,589
Other income 41,354 40,794
------------ -----------
1,048,110 900,383
------------ -----------
Noninterest expense:
Compensation and employee benefits 347,604 274,794
Occupancy 26,938 18,988
Equipment maintenance and expense 16,826 14,839
Data processing and outside service fees 40,912 38,361
Insurance 23,865 43,319
Special SAIF assessment 436,548
Other 89,796 56,333
------------ -----------
545,941 883,182
------------ -----------
INCOME BEFORE INCOME TAXES 502,169 17,201
------------ -----------
Income taxes (benefit):
Current 209,451 (19,455)
Deferred (3,641) 25,300
------------ -----------
205,810 5,845
------------ -----------
NET INCOME $ 296,359 $ 11,356
------------ -----------
Earnings per share $ 0.31 $ 0.02
------------ -----------
Weighted average common and common
equivalent shares 943,986 923,449
------------ -----------
Dividends paid per share $ 0.15 $ 0.15
------------ -----------
</TABLE>
See Notes to Condensed Consolidated Financial Statements.
3
<PAGE>
KS BANCORP, INC. and subsidiary
Condensed Consolidated Statements of Income (Unaudited)
Nine Months Ended September 30, 1997 and 1996
<TABLE>
<CAPTION>
1997 1996
- -------------------------------------------------------------------
<S> <C> <C>
Interest and dividend income:
Loans $ 5,899,115 $ 4,969,223
Investment securities 382,163 423,465
Mortgage-backed securities 74,138 77,151
Interest-bearing deposits 77,452 69,370
------------ -----------
TOTAL INTEREST INCOME 6,432,868 5,539,209
Interest expense:
Deposits 3,155,019 2,800,031
Borrowings 255,086 146,263
------------ -----------
TOTAL INTEREST EXPENSE 3,410,105 2,946,294
------------ -----------
NET INTEREST INCOME 3,022,763 2,592,915
Provision for loan losses 19,000 62,500
------------ -----------
NET INTEREST INCOME AFTER PROVISION
FOR LOAN LOSSES 3,003,763 2,530,415
Other income 119,258 107,764
------------ -----------
3,123,021 2,638,179
------------ -----------
Noninterest expense:
Compensation and employee benefits 914,765 783,182
Occupancy 79,959 58,001
Equipment maintenance and expense 44,972 45,415
Data processing and outside service fees 125,701 114,628
Insurance 61,366 130,602
Special SAIF assessment 436,548
Other 296,216 218,753
------------ -----------
1,522,979 1,787,129
------------ -----------
INCOME BEFORE INCOME TAXES 1,600,042 851,050
------------ -----------
Income taxes:
Current 629,176 272,241
Deferred 2,254 27,020
------------ -----------
631,430 299,261
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NET INCOME $ 968,612 $ 551,789
------------ -----------
Earnings per share $ 1.03 $ 0.60
------------ -----------
Weighted average common and common
equivalent shares 939,384 924,400
------------ -----------
Dividends paid per share $ 0.37 $ 0.34
------------ -----------
</TABLE>
See Notes to Condensed Consolidated Financial Statements.
4
<PAGE>
KS BANCORP, INC. and subsidiary
Condensed Consolidated Statements of Cash Flows (Unaudited)
Nine Months Ended September 30, 1997 and 1996
<TABLE>
<CAPTION>
1997 1996
---------------------------
<S> <C> <C>
Cash Flows From Operating Activities
Net income $ 968,612 $ 551,789
Adjustments to reconcile net income to
net
Cash provided by operating activities:
Depreciation and amortization 77,064 50,621
Deferred income taxes 2,254 (27,020)
Loss on sale of investment securities 5,905 7,169
Provision for loan losses 19,000 62,500
ESOP compensation expense credited to
paid-in capital 36,238 26,208
Changes in assets and liabilities:
(Increase) decrease in:
Accrued interest receivable (140,907) (74,738)
Prepaid expenses and other assets (82,680) (82,453)
Refundable income taxes 138,933 (111,114)
Increase (decrease) in:
Accrued expenses and other liabilities 16,028 518,151
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NET CASH PROVIDED BY OPERATING
ACTIVITIES 1,040,447 921,113
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Cash Flows From Investing Activities
Proceeds from maturities of investments 1,500,000 (2,300,000)
Proceeds from sale of investments
available for sale 2,076,559 (497,500)
Purchase of investments (3,311,616) (1,482,154)
Principal repayments of mortgage backed
securities 35,777 (458,871)
Mortgage loans, net (11,135,396) (9,022,544)
Purchase of property and equipment (224,905) (431,642)
------------- -----------
NET CASH USED IN INVESTING ACTIVITIES (1,1059,581) (7,679,969)
------------- -----------
</TABLE>
5
<PAGE>
KS BANCORP, INC. and subsidiary
Condensed Consolidated Statements of Cash Flows (Unaudited)
Nine Months Ended September 30, 1997 and 1996
<TABLE>
<CAPTION>
1997 1996
- -------------------------------------------------------------------------
<S> <C> <C>
Cash Flows From Financing Activities
Net increase in deposits $ 4,116,059 $ 6,385,345
Advance from Federal Home Loan Bank 4,000,000 1,000,000
Increase in advance payments by borrowers
for taxes and insurance 45,099 28,423
Cash dividends paid (319,286) (289,183)
Issuance of common stock 8,740
Redemption of common stock (2,640) (370,000)
-------------- -------------
NET CASH PROVIDED BY FINANCING 7,847,972 6,754,585
ACTIVITIES
-------------- -------------
NET DECREASE IN CASH AND CASH
EQUIVALENTS (2,171,162) (4,271)
Cash and cash equivalents:
Beginning 6,160,236 4,083,414
-------------- -------------
Ending $ 3,989,074 $ 4,079,143
-------------- -------------
Supplemental Disclosures of Cash Flow
Information
Cash payments for:
Interest $ 3,423,965 $ 2,938,462
-------------- -------------
Income taxes $ 689,176 $ 444,368
-------------- -------------
Cash and cash equivalents:
Cash and short-term investments:
Interest-bearing $ 3,546,616 $ 3,596,132
Noninterest-bearing 442,458 483,011
-------------- -------------
$ 3,989,074 $ 4,079,143
-------------- -------------
</TABLE>
See Notes to Condensed Consolidated Financial Statements.
6
<PAGE>
KS BANCORP, INC. AND SUBSIDIARY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
BASIS OF PRESENTATION
The accompanying unaudited consolidated financial statements (except for the
statement of financial condition at December 31, 1996, which is audited) have
been prepared in accordance with generally accepted accounting principles for
interim financial information and with 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 necessary for a fair presentation of the financial
position and results of operations for the periods presented have been included.
Except for an adjustment during the nine month period ended September 30, 1996
recorded as a result of federal legislation to recapitalize the Savings
Association Insurance Fund (SAIF), there were no other adjustments which were
recorded other than normal recurring accruals. The results of operations for the
three and nine month periods ended September 30, 1997 are not necessarily
indicative of the results of operations that may be expected for the year ended
December 31, 1997.
The accounting policies followed are as set forth in Note 1 of the Notes to
Consolidated Financial Statements in the 1996 KS Bancorp, Inc. annual report.
ALLOWANCE FOR LOAN LOSSES
The Bank's allowance for loan losses increased by the related provision charged
to operations of $19,000 during the three and nine month periods ended September
30, 1997 and $20,500 and $62,500 during the three and nine month periods ended
September 30, 1996, respectively. The Bank did not incur any loan charge-offs
or recoveries during these periods. The allowance at September 30, 1997 was
$320,867. The Bank's ratio of nonperforming assets to total assets at September
30, 1997 was .06%.
STOCK DIVIDEND
On June 25, 1997, the Bank effected a four for three stock dividend for
shareholders of record on June 10, 1997. As a result of the stock dividend, the
Bank issued 221,219 shares of common stock. As a result of this, all prior
period share information included in the interim financial statements has been
restated.
SUBSEQUENT EVENT
On October 17, 1997, the Board approved a special cash dividend of $.30 per
share to all stockholders on record as of October 28, 1997 with payment to be
made on November 7, 1997.
7
<PAGE>
KS BANCORP, INC. AND SUBSIDIARY
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS
The following discussion and analysis is intended to assist readers in
understanding the results of operations and changes in financial position for
the three and nine month periods ended September 30, 1997 of KS Bancorp, Inc.
(the Corporation) and its wholly owned subsidiary, Kenly Savings Bank, SSB (the
Bank). This overview should be read in conjunction with the consolidated
financial statements and supplemental financial data contained herein and with
"Management's Discussion and Analysis of Financial Condition and Results of
Operations" included in the Corporation's 1996 annual report on form 10-K.
OVERVIEW OF 1997 RESULTS:
Total assets increased by $9.1 million during the nine month period ended
September 30, 1997 primarily as result of an increase in the Bank's loan
portfolio which was funded primarily through increased deposits of $4.1 million
and advances received from the FHLB of approximately $4.0 million. Earnings for
the period totaled approximately $969,000.
Mortgage loans increased by $11.1 million during the nine month period ended
September 30, 1997. The increase resulted primarily due to a continued strong
loan demand in the Bank's primary lending areas. The Bank originated these
loans for its portfolio.
Investment securities and short-term interest-bearing deposits, increased by
approximately $2.1 million during the nine month period ended September 30, 1997
and amounted to $12.5 million at September 30, 1997. The market value of the
Corporation's available for sale securities increased by approximately $465,000
during the quarter, primarily as a result of movements in market interest rates.
At September 30, 1997, the Corporation's available for sale portfolio had
securities with unrealized gains of $960,000.
The Corporation's annualized return on assets for the three and nine month
periods ended September 30, 1997 was 1.08% and 1.17%, respectively. For the
same periods in 1996, the annualized return was .05% and .80%, respectively. The
Corporation's return on equity for the three and nine month periods ended
September 30, 1997 was 8.15% and 8.87%, respectively, compared to .33% and 5.32%
for the same periods in 1996. Earnings during the three months and nine months
ended September 30, 1996 were adversely effected by a special SAIF assessment
levied by the FDIC on all SAIF insured institutions which amounted to $436,548.
8
<PAGE>
KS BANCORP, INC AND SUBSIDIARY
MANGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS
During each of the quarters ended March 31, 1997, June 30, 1997, and September
30, 1997 the Corporation paid cash dividends of $ .11, $ .11, and $ .15,
amounting to approximately $96,000, $95,000 and $128,000 respectively. At
September 30, 1997, the Corporation and the Bank's capital was significantly in
excess of regulatory capital requirements.
9
<PAGE>
KS BANCORP, INC. AND SUBSIDIARY
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS
Net income for the three and nine month periods ended September 30, 1997 was
$296,359 or $.31 per share and $968,612 or $.1.03 per share, respectively. Net
income for the comparable periods in 1996 was $11,356 or $.02 per share and
$551,789 or $.60 per share, respectively. Net interest income for the three
month period ended September 30, 1997 was approximately $146,000 higher than the
comparable period of 1996, while the net interest income for the nine month
period ended September 30, 1997 was approximately $430,000 higher than the
comparable period for 1996. The increase in net interest income is primarily
attributable to a small increase in the interest rate spread in effect during
the periods, and a change in the mix of interest-earning assets favoring loans
receivable instead of investment securities. The yield on loans receivable is
typically higher than the yield on investment securities.
Noninterest expense decreased by approximately $337,000 and 264,000 during the
three and nine month periods ended September 30, 1997, respectively, compared to
the same periods in 1996. The primary reason for the overall decrease was due
to large SAIF assessment paid during 1996. This was partially offset by
increased levels of compensation and other expenses associated with the
operations of the new branch office in Kenly, North Carolina opened during the
fourth quarter of 1996, and the operation of the Bank's Goldsboro, North
Carolina facility as a full service branch.
ASSET QUALITY:
Nonperforming assets, which consist of nonaccrual loans and real estate acquired
through foreclosure, amounted to approximately $63,000 and $274,000 at September
30, 1997 and December 31, 1996, respectively. The ratio of nonperforming assets
to total assets at September 30, 1997 and December 31, 1996 was .06% and .34%,
respectively. Based on management's analysis of the adequacy of its allowances
at September 30, 1997, a provision for loan losses was made of $19,000 during
the three and nine months ended September 30, 1997. Provisions which are
charged to operations, and the resulting loan loss allowances are amounts the
Bank's management believes will be adequate to absorb losses on existing loans
that may become uncollectible. Loans are charged off against the allowance when
management believes that collectibility is unlikely. The evaluation to increase
or decrease the provision and resulting allowances is based both on prior loan
loss experience and other factors, such as changes in the nature and volume of
the loan portfolio, overall portfolio quality, and current economic conditions.
The allowance for loan losses amounted to approximately $321,000 at September
30, 1997 and is considered adequate by management to absorb existing losses,
either known or as yet undetected.
10
<PAGE>
KS BANCORP, INC. AND SUBSIDIARY
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS
LIQUIDITY:
The term "liquidity" generally refers to an organization's ability to generate
adequate amounts of funds to meet its needs for cash. More specifically for
financial institutions, liquidity ensures that adequate funds are available to
meet deposit withdrawals, fund loan and capital expenditure commitments,
maintain reserve requirements, pay operating expenses, and provide funds for
debt service and other institutional commitments. Funds are primarily provided
through financial resources from operating activities, expansion of the deposit
base, borrowings, through the sale or maturity of investments, or maintenance of
shorter term interest-bearing deposits.
The Bank is required by regulations to maintain liquid assets, essentially cash,
short-term interest bearing deposits, substantially all investments, and
mortgage-backed securities, of at least 10% of total assets. A substantial
portion of the Bank's investment portfolio is classified as available for sale,
and liquidation of such portfolio, if need be, would not have accounting
implications on the Corporation's equity under SFAS No. 115. The Bank exceeded
its requirements at September 30, 1997 and management believes that the Bank's
liquidity is adequate to fund all outstanding commitments and other anticipated
cash needs.
CAPITAL RESOURCES AND ADEQUACY:
KS Bancorp, Inc.'s stockholders' equity was $14.5 million, or 13.24% of total
assets at September 30, 1997. As a state chartered stock savings bank, the Bank
is required to meet three separate capital standards as established by the
Federal Deposit Insurance Corporation and an additional capital requirement
established by the State Administrator of the Savings Institutions Division.
The Bank was substantially in excess of all such capital requirements at
September 30, 1997.
11
<PAGE>
KS BANCORP, INC AND SUBSIDIARY
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS
Part II. OTHER INFORMATION
Item 1. Legal Proceedings
The Company is not engaged in any legal proceedings at the present
time. From time to time, the Bank is a party to legal proceedings
within the normal course of business wherein it enforces its
security interest in loans made by it, and other matters of a like
kind.
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) 27. Financial Data Schedule
(b) No reports on Form 8-K were filed for the period covered.
12
<PAGE>
KS BANCORP, INC. AND SUBSIDIARY
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS
No reports on Form 8-K were filed for the period covered by this report.
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.
KS BANCORP, INC.
Dated November 4, 1997 By: /s/ Harold T. Keen
------------------ -----------------------
Harold T. Keen
President and CEO
Dated November 4, 1997 By: /s/ Helen B. Pollock
------------------ -----------------------
Helen B. Pollock
Treasurer
13
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 9
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> SEP-30-1997
<CASH> 442,458
<INT-BEARING-DEPOSITS> 3,546,616
<FED-FUNDS-SOLD> 0
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 6,216,681
<INVESTMENTS-CARRYING> 4,140,709
<INVESTMENTS-MARKET> 4,191,341
<LOANS> 92,948,135
<ALLOWANCE> 320,867
<TOTAL-ASSETS> 109,937,198
<DEPOSITS> 86,461,984
<SHORT-TERM> 8,000,000
<LIABILITIES-OTHER> 921,317
<LONG-TERM> 0
0
0
<COMMON> 5,203,550
<OTHER-SE> 9,350,347
<TOTAL-LIABILITIES-AND-EQUITY> 109,937,198
<INTEREST-LOAN> 5,899,115
<INTEREST-INVEST> 382,163
<INTEREST-OTHER> 151,590
<INTEREST-TOTAL> 6,432,868
<INTEREST-DEPOSIT> 3,155,019
<INTEREST-EXPENSE> 3,410,105
<INTEREST-INCOME-NET> 3,022,763
<LOAN-LOSSES> 19,000
<SECURITIES-GAINS> (5,905)
<EXPENSE-OTHER> 1,522,979
<INCOME-PRETAX> 1,600,042
<INCOME-PRE-EXTRAORDINARY> 1,600,042
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 968,612
<EPS-PRIMARY> 1.03
<EPS-DILUTED> 1.03
<YIELD-ACTUAL> 3.76
<LOANS-NON> 0
<LOANS-PAST> 0
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 320,867
<CHARGE-OFFS> 0
<RECOVERIES> 0
<ALLOWANCE-CLOSE> 320,867
<ALLOWANCE-DOMESTIC> 320,867
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
