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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
----------------------
FORM 10-Q
----------------------
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarter ended March 31, 1996
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
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For the transition period ______ to ______ Commission File Number 001-12746
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SECURITY-CONNECTICUT CORPORATION
(Exact Name of Registrant as Specified in its Charter)
Delaware 06-1383088
(State of incorporation) (I.R.S. Employer Identification Number)
20 Security Drive, Avon, Connecticut 06001
(Address of principal executive offices)
(860) 677-8621
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 [ ]
There were 8,552,818 shares outstanding of the Registrant's Common Stock, $.01
par value, as of May 7, 1996.
The exhibit index to this report is located on page 9.
Page 1 of 11
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<PAGE>
TABLE OF CONTENTS
Page
----
PART I - FINANCIAL INFORMATION
- - ------------------------------
Item 1 Financial Statements (Unaudited)
Consolidated Balance Sheets -
March 31, 1996 and December 31, 1995.............................. 3
Consolidated Statements of Income -
Three Months Ended March 31, 1996 and 1995........................ 4
Consolidated Statements of Cash Flows -
Three Months Ended March 31, 1996 and 1995........................ 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 6 Exhibits and Reports on Form 8-K................................... 9
Signatures......................................................... 10
-2-
<PAGE>
SECURITY-CONNECTICUT CORPORATION
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands, except per share data)
(Unaudited)
March 31, December 31,
----------- -----------
ASSETS 1996 1995
----------- -----------
Investments:
Securities available-for-sale at fair value:
Fixed maturities (cost: 1996-$1,516,529;
1995-$1,469,970)............................. $ 1,550,945 $ 1,564,576
Equities (cost: 1996-$826; 1995-$3,435)........ 1,930 6,331
Mortgage loans on real estate...................... 144,098 145,080
Policy loans....................................... 73,781 73,916
Other invested assets.............................. 6,298 6,221
----------- -----------
Total investments................................ 1,777,052 1,796,124
Cash and invested cash............................. 20,099 29,753
Deferred policy acquisition costs.................. 371,868 335,821
Premiums and fees receivable....................... 7,857 5,871
Accrued investment income.......................... 28,233 28,710
Goodwill........................................... 21,331 21,557
Property and equipment............................. 9,145 9,455
Acquired insurance in-force........................ 8,795 8,966
Amounts recoverable from reinsurers................ 38,599 34,974
Other assets....................................... 29,380 10,188
------------ -----------
Total assets..................................... $ 2,312,359 $ 2,281,419
============ ===========
LIABILITIES
Future policy benefits and claims.................. $ 1,701,935 $ 1,682,364
Contractholder funds............................... 55,385 49,978
Long-term debt..................................... 75,000 65,000
Federal income taxes payable....................... 30,287 38,178
Dividends payable.................................. 1,027 1,066
Accrued expenses and other liabilities............. 105,614 87,470
Deferred gain on sale/leasebacks................... 1,309 1,334
Participating department equity.................... 7,865 7,667
------------ -----------
Total liabilities................................ 1,978,422 1,933,057
SHAREHOLDERS' EQUITY
Preferred stock, par value $0.01 per share; Authorized-
10,000,000 shares; issued and outstanding - none
Common stock, par value $0.01 per share; Authorized-
50,000,000 shares; issued and outstanding-
1996- 8,552,818 shares; 1995-8,555,994 shares.... 86 86
Paid-in capital.................................... 82,402 82,405
Deferred compensation.............................. (379)
Net unrealized gains on securities available-for-sale 12,786 35,748
Retained earnings.................................. 238,663 230,502
------------ -----------
Total shareholders' equity....................... 333,937 348,362
------------ -----------
Total liabilities and shareholders' equity....... $ 2,312,359 $ 2,281,419
============ ===========
See notes to consolidated financial statements.
-3-
<PAGE>
SECURITY-CONNECTICUT CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(Dollars in thousands, except per share data)
(Unaudited)
Three Months ended March 31,
1996 1995
----------- -----------
REVENUE
Premiums........................................... $ 14,042 $ 18,144
Insurance fees..................................... 33,900 30,667
Net investment income.............................. 33,533 31,630
Realized gains (losses) on investments............. 4,135 (1,369)
Other.............................................. 159 725
------------ -----------
Total revenues................................... 85,769 79,797
BENEFITS AND EXPENSES
Benefits and reserves.............................. 49,425 54,197
Insurance and other expenses....................... 22,118 20,322
Participating department gain...................... 198 64
------------ -----------
Total benefits and expenses...................... 71,741 74,583
------------ -----------
Income before federal income taxes................... 14,028 5,214
Federal income taxes................................. 4,815 1,705
------------ -----------
NET INCOME........................................... $ 9,213 $ 3,509
============ ===========
EARNINGS PER COMMON SHARE............................ $ 1.07 $ 0.41
============ ===========
DIVIDENDS DECLARED PER COMMON SHARE.................. $ 0.12 $ 0.12
============ ===========
Common stock and equivalents......................... 8,598,410 8,579,979
============ ===========
See notes to consolidated financial statements.
-4-
<PAGE>
SECURITY-CONNECTICUT CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in thousands)
(Unaudited)
Three Months ended March 31,
----------------------------
1996 1995
----------- -----------
OPERATING ACTIVITIES
Net income........................................... $ 9,213 $ 3,509
Adjustments to reconcile net income to net cash used:
Deferred policy acquisition costs:
Amortization..................................... 11,111 9,325
Deferral......................................... (17,624) (17,262)
Decrease (increase) in accrued investment income... 477 (2,833)
Increase in policy liabilities and contractholder
funds............................................ (16,272) (19,339)
Increase (decrease) in federal income taxes........ 4,465 (395)
Net amortization of acquired insurance in-force
and goodwill..................................... 396 407
Increase in participating department equity........ 198 64
Decrease (increase) in amounts recoverable from
reinsurers....................................... (3,625) 4,437
Decrease (increase) in premiums and fees receivable (1,986) 187
Realized (gain) loss on investments................ (4,135) 1,369
Other.............................................. 5,675 (194)
----------- -----------
Net cash used in operating activities................ (12,107) (20,725)
INVESTING ACTIVITIES
Fixed maturity securities available-for-sale:
Purchases.......................................... (161,045) (85,950)
Sales.............................................. 85,844 23,007
Maturities......................................... 31,834 9,805
Purchases of other investments....................... (571) (5)
Sale or maturity of other investments................ 6,252 8,568
Other................................................ (6,607) (3,854)
----------- -----------
Net cash used in investing activities................ (44,293) (48,429)
FINANCING ACTIVITIES
Universal life and investment contract deposits...... 64,180 68,593
Universal life and investment contract withdrawals... (26,277) (17,347)
Issuance of long-term debt........................... 75,000
Repayment of long-term debt.......................... (65,000)
Dividends to shareholders............................ (1,028) (1,026)
Acquisition of treasury stock........................ (129)
----------- -----------
Net cash provided by financing activities............ 46,746 50,220
----------- -----------
Net decrease in cash and invested cash............... (9,654) (18,934)
Cash and invested cash at beginning of period........ 29,753 26,338
----------- -----------
Cash and invested cash at end of period.............. $ 20,099 $ 7,404
=========== ===========
See notes to consolidated financial statements.
-5-
<PAGE>
SECURITY-CONNECTICUT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)
1. Accounting Policies and Principles
Basis of Financial Statements
The accompanying unaudited consolidated financial statements have been
prepared in conformity with generally accepted accounting principles for interim
financial information and with the instructions to Form 10-Q 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
only of normal recurring accruals considered necessary for a fair presentation,
have been included. Operating results for the three month period ended March 31,
1996 are not necessarily indicative of the results that may be expected for the
year ending December 31, 1996. For further information, refer to the
consolidated financial statements and notes thereto included in the Company's
annual report on Form 10-K for the year ended December 31, 1995. The
accompanying financial information relates to the consolidated financial
statements of Security-Connecticut Corporation (the "Company") and its wholly
owned subsidiaries, Arrowhead Ltd. (a Bermuda insurance corporation) and
Security-Connecticut Life Insurance Company ("SCL") and SCL's wholly owned
subsidiary, Lincoln Security Life Insurance Company ("LSL"). Significant
intercompany transactions and balances have been eliminated.
Earnings Per Common Share
Fully diluted earnings per common share are not presented as they are not
materially different from primary earnings per common share.
2. Long-Term Debt
On June 8, 1995, the Company registered $100 million of debt securities on
Form S-3 with the Securities and Exchange Commission. The Company sold $75
million of medium term debt securities on March 1, 1996 and used $65 million of
the net proceeds to repay the Term Note to Lincoln National Life Insurance
Company ("LNL"). The remainder of the proceeds have been used for general
corporate purposes. The Fixed Rate Notes ("Notes") have an effective rate of
7.39% and are due March 1, 2003 and may not be redeemed prior to maturity.
Interest on the Notes will be payable semiannually in arrears on March 1 and
September 1 of each year, commencing on September 1, 1996.
3. Litigation
The Company is involved in litigation concerning policy benefits, which
seek both punitive and compensatory damages. Management believes these suits are
substantially without merit, that valid defenses exist, and that the results of
such litigation will not have a material adverse effect on the accompanying
financial statements.
-6-
<PAGE>
In addition, the Company is involved in two class action lawsuits as
follows:
Zipf vs. Security-Connecticut Life Insurance Company, et al., Court of
Common Pleas of Allegheny County, Pennsylvania.
The complaint, seeking actual and punitive damages, alleges that SCL has a
practice of misleading and/or misinforming policyholders on the basis of a
policy rate class designation. Specifically, the plaintiff alleges that the
"special non-smoker" designation leads policyholders to believe that they are
being charged premiums based on a "superior" rate when the actual premiums are
based on an "inferior, substandard or rated class."
In June 1995, the Pennsylvania court ordered the case certified as a class
action. The court later limited the class to Pennsylvania residents "who
purchased life insurance policies from Security-Connecticut Life Insurance
Company designated as 'Premium Rate Class Special Non-Smoker' on or after
November 17, 1986." Seeking to pursue an interlocutory appeal as to the
propriety of class certification, SCL filed a Petition for Review with the
Pennsylvania Supreme Court on December 29, 1995. The petition was denied in
March 1996. Management believes this suit is without merit and will continue to
vigorously defend the action.
Jacobson vs. Security-Connecticut Life Insurance Company, Security-
Connecticut Corporation and Lincoln National Life Insurance Company, Superior
Court, Judicial District of Hartford/New Britain at Hartford, Connecticut.
Plaintiffs filed a class action complaint in November 1995, seeking
contractual damages, attorneys fees and the imposition of a constructive trust.
Plaintiffs allege breach of contract, fraud and violation of Connecticut's
Unfair Trade Practices Act. Plaintiffs claim that SCL improperly charged
additional premiums to pay for the deferred acquisition cost tax incurred by
defendants LNL and the Company. Management believes this suit is without merit
and will vigorously defend the action.
ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
- - ------------------------------------------------------------------------
RESULTS OF OPERATIONS
- - ---------------------
Results of Operations
Three Months Ended March 31, 1996 compared to the Three Months Ended March
31, 1995.
Premiums - Premiums decreased $4.1 million, or 22.6%, from $18.1 million in
1995 to $14.0 million in 1996 due principally to a decrease in single premium
immediate annuity premiums of $3.1 million and an increase in ceded premiums
under various reinsurance agreements of $3.1 million, partially offset by an
increase in assumed reinsurance premiums of $2.4 million.
The Company's first year annualized life premiums on new life insurance
sales for individual life insurance increased 20.9%, from $11.1 million in 1995
to $13.4 million in 1996 primarily as a result of an increase in sales of
recently introduced universal life and term products. Annualized annuity sales
decreased $16.6 million or 56.0% from $29.6 million in 1995 to $13.0 million in
1996.
Insurance Fees - Insurance fees, primarily mortality and expense
assessments on universal life products increased $3.2 million, or 10.5%, from
$30.7 million in 1995 to $33.9 million in 1996. The increase resulted primarily
from the growth of insurance in-force, higher fees and aging of the in-force
block.
-7-
<PAGE>
Net Investment Income - Net investment income increased $1.9 million, or
6.0%, from $31.6 million in 1995 to $33.5 million in 1996. This reflects the
increase in the amount of invested assets, offset slightly by a lower effective
yield on such assets. The effective yield on invested assets was 7.7% for 1996
compared with 7.9% for 1995.
Realized Gains on Investments - Net realized gains on investments were $4.1
million in 1996 compared with realized losses of $1.4 million in 1995. The 1996
gains were the result of net realized capital gains of $4.8 million from the
sale of investments, offset by increases in the reserve for losses of $0.2
million, and deferred policy acquisition costs ("DAC") associated with realized
gains of $0.5 million. The 1995 losses were the result of net realized gains
from the sale of investments of $0.4 million offset by increases in the reserve
for losses of $1.5 million and DAC associated with realized gains of $0.3
million.
Other - Other revenue decreased $0.5 million from $0.7 million in 1995 to
$0.2 million in 1996 due primarily to the reimbursement of legal expenses from
the Company's professional liability insurance policies in 1995.
Benefits and Reserves - Benefits and reserves decreased $4.8 million, or
8.8%, from $54.2 million in 1995 to $49.4 million in 1996. The Company's life
claim experience for 1996 was favorable compared to first quarter 1995 by $2.8
million. However, life claim experience was slightly worse than expected. Total
benefits for 1996 included $1.6 million of assumed claims and higher annuity
benefits compared to first quarter 1995 by $0.7 million. Policy reserves and
other fund deposits decreased $5.1 million from $6.5 million in 1995 to $1.4
million in 1996 due primarily to decreased single premium annuity sales.
Insurance and Other Expenses - Insurance and other expenses increased $1.8
million, or 8.8%, from $20.3 million in 1995 to $22.1 million in 1996.
Commissions, net of deferral and amortization of DAC, increased $1.1 million, or
15.6%, from $7.4 million in 1995 to $8.5 million in 1996. General administrative
and other operating costs, net of DAC, increased $0.6 million, or 5.0%, from
$13.0 million in 1995 to $13.6 million in 1996 primarily due to the recognition
of an additional $0.3 million of deferred compensation expense relating to the
repayment of the Term Note.
Federal Income Taxes - Federal income taxes increased $3.1 million from
$1.7 million in 1995 to $4.8 million in 1996. This was primarily due to higher
pre-tax operating income. The effective tax rate was 34.3% in 1996 compared to
32.7% in 1995.
Liquidity and Capital Resources
Security-Connecticut Corporation is a holding company whose principal
assets are Arrowhead Ltd. and SCL and its wholly owned insurance subsidiary. The
Company is dependent on receiving dividends from SCL and Arrowhead Ltd. to pay
operating expenses, meet debt service payments and make dividend payments to its
shareholders. The dividends from SCL are subject to certain statutory
limitations.
Cash flow from SCL's insurance operations consists primarily of its
contractual obligations to policyholders and annuitants and its payment of
dividends to the Company. The primary source of meeting these contractual
requirements is investment income from its total investment portfolio, scheduled
maturities from its available-for-sale fixed maturity security portfolio, and
principal repayments from its mortgage portfolio, as well as a portion of
premium income.
To provide for additional liquidity to meet normal variations in contract
obligations, the Company maintains cash and short-term investments, a revolving
credit facility and a significant portion (82.5% at March 31, 1996) of its fixed
maturity portfolio in readily marketable public debt securities. The Company
believes that its liquidity needs are adequately met with the aforementioned
investment policies, combined with the contractual terms of its life insurance
and annuity products.
-8-
<PAGE>
The Company has entered into several interest rate cap agreements as a
hedge against rising interest rates in its SPDA investment portfolio. As of
March 31, 1996, these agreements established cap rates ranging from 7.87% to
12.5% on notional principal of $410 million with termination dates through 2001.
The aggregate cost of $2.5 million is being amortized to net investment income
over the effective life of the caps. These investments are reported as fixed
maturity securities and classified as available-for-sale and are carried at fair
value ($1.5 million at March 31, 1996) with unrealized gains and losses reported
in shareholders' equity. The Company is exposed to credit loss in the event of
non-performance by counterparties on the caps. Due to the high quality rating of
the counterparties, the Company does not anticipate non-performance by any of
the counterparties. The amount of such exposure is approximately the unrealized
gain in such contracts as interest rates rise.
The Company does not believe that inflation has had a material effect on
its consolidated results of operations. The Company manages its investment
portfolio in part to reduce its exposure to interest rate fluctuations. In
general, the market value of the Company's fixed maturity portfolio increases or
decreases in inverse relationship with fluctuations in interest rates, and the
Company's net investment income increases or decreases in direct relationship
with interest rate changes. For example, if interest rates decline (as was the
case in 1995), the Company's fixed maturity investments generally will increase
in market value, while net investment income may decrease as fixed maturity
investments mature or are sold and proceeds are reinvested at the declining
rates. If interest rates increase (as was the case in 1994), the Company's fixed
maturity investments generally will decrease in market value, while net
investment income may increase as fixed maturity investments mature or are sold
and proceeds are reinvested at the increased rates.
Interest rate changes may have temporary effects on the sale and
profitability of the universal life and annuity products offered by the Company.
For example, if interest rates rise, competing investments (such as annuities or
life insurance offered by the Company's competitors, certificates of deposit,
mutual funds, and similar instruments) may become more attractive to potential
purchasers of the Company's products until the Company increases the rate
credited to holders of its universal life and annuity products. As part of the
Company's management of interest spreads, the Company constantly monitors
interest rates with respect to a spectrum of durations and sells policies and
annuities that permit flexible responses to interest rate changes.
Part II - Other Information
- - ---------------------------
ITEMS 1, 2, 3, 4, and 5 are either inapplicable or are answered in the negative
and are omitted pursuant to the instructions to Part II.
ITEM 6 - EXHIBITS AND REPORTS ON FORM 8-K
- - -----------------------------------------
a.) Exhibit 12.01 Calculation of ratio of earnings to fixed charges, page 11.
b.) The Company did not file any reports on Form 8-K during the three
months ended March 31, 1996.
-9-
<PAGE>
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) 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.
SECURITY-CONNECTICUT CORPORATION
(Registrant)
Date: May 7, 1996 /s/Ronald D. Jarvis
----------------- ---------------------------------------
Ronald D. Jarvis, Chairman, President
and Chief Executive Officer
(Principal Executive Officer); Director
Date: May 7, 1996 /s/Robert J. Voight
----------------- ---------------------------------------
Robert J. Voight, Senior Vice President,
Financial Management
(Principal Financial Officer)
Date: May 7, 1996 /s/Richard D. Mocarski
----------------- ---------------------------------------
Richard D. Mocarski, Vice President,
Controller and Treasurer
(Principal Accounting Officer)
-10-
<TABLE>
<CAPTION>
Exhibit 12.01
SECURITY-CONNECTICUT CORPORATION
CALCULATION OF RATIO OF EARNINGS TO FIXED CHARGES
Three Months
Ended
March 31, Year Ended December 31,
-------- ------------------------------------------------
1996 1995 1994 1993(1) 1992(1) 1991(1)
-------- -------- -------- -------- -------- --------
(thousands of dollars, except ratio data)
Earnings:
Income before federal
income tax and
cumulative effects
<S> <C> <C> <C> <C> <C> <C>
of accounting change ............. $ 14,028 $ 36,396 $ 37,967 $ 40,513 $ 32,815 $ 39,782
Fixed charges, excluding
interest on annuities
and financial products ........... 1,639 6,355 5,027 4,434 4,760 6,130
-------- -------- -------- -------- -------- --------
Earnings, excluding interest
on annuities and
financial products .............. 15,667 42,751 42,994 44,947 37,575 45,912
Interest on annuities and
financial products ............... 21,630 87,034 75,747 70,785 67,708 59,339
-------- -------- -------- -------- -------- --------
Earnings ......................... $ 37,297 $129,785 $118,741 $115,732 $105,283 $105,251
======== ======== ======== ======== ======== ========
Fixed Charges:
Interest expense on debt ........... $ 1,169 $ 4,495 $ 3,208 $ 2,641 $ 2,990 $ 4,381
Interest component of
rent expense ..................... 470 1,860 1,819 1,793 1,770 1,749
-------- -------- -------- -------- -------- --------
Fixed charges, excluding
interest on annuities and
financial products .............. 1,639 6,355 5,027 4,434 4,760 6,130
Interest on annuities and
financial products ............... 21,630 87,034 75,747 70,785 67,708 59,339
-------- -------- -------- -------- -------- --------
Fixed charges .................... $ 23,269 $ 93,389 $ 80,774 $ 75,219 $ 72,468 $ 65,469
======== ======== ======== ======== ======== ========
Ratios of Earnings to Fixed Charges:
Excluding interest on annuities
and financial products (2) ....... 9.56 6.73 8.55 10.14 7.89 7.49
Including interest on annuities
and financial products (3) ....... 1.60 1.39 1.47 1.54 1.45 1.61
<FN>
(1) The amounts reported are pro-forma and assume the $65 million Term Note was
outstanding in years 1993-1991, at LIBOR plus .75%, as more fully described
in the Company's financial statements included in its Annual Report on Form
10-K, for the year ended December 31, 1995.
(2) This ratio is comprised of the relationship of "earnings excluding interest
on annuities and financial products" to "fixed charges excluding interest on
annuities and financial products" as disclosed above.
(3) This ratio is comprised of the relationship of "earnings" to "fixed charges"
as disclosed above.
</FN>
</TABLE>
-11-
<TABLE> <S> <C>
<ARTICLE> 7
<LEGEND>
This schedule contains summary financial information extracted from the
financial statements for the three month period ended March 31, 1996 as filed on
Form 10-Q and is qualified in its entirety by reference to such Form 10-Q.
</LEGEND>
<CIK> 0000913601
<NAME> Security-Connecticut Corporation
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> MAR-31-1996
<DEBT-HELD-FOR-SALE> 1,550,945,000
<DEBT-CARRYING-VALUE> 0
<DEBT-MARKET-VALUE> 0
<EQUITIES> 1,930,000
<MORTGAGE> 144,098,000
<REAL-ESTATE> 0
<TOTAL-INVEST> 1,777,052,000
<CASH> 20,099,000
<RECOVER-REINSURE> 38,599,000
<DEFERRED-ACQUISITION> 371,868,000
<TOTAL-ASSETS> 2,312,359,000
<POLICY-LOSSES> 1,701,935,000
<UNEARNED-PREMIUMS> 0
<POLICY-OTHER> 0
<POLICY-HOLDER-FUNDS> 55,385,000
<NOTES-PAYABLE> 75,000,000
0
0
<COMMON> 86,000
<OTHER-SE> 333,851,000
<TOTAL-LIABILITY-AND-EQUITY> 2,312,359,000
47,942,000
<INVESTMENT-INCOME> 33,533,000
<INVESTMENT-GAINS> 4,135,000
<OTHER-INCOME> 159,000
<BENEFITS> 49,425,000
<UNDERWRITING-AMORTIZATION> 11,111,000
<UNDERWRITING-OTHER> 11,007,000
<INCOME-PRETAX> 14,028,000
<INCOME-TAX> 4,815,000
<INCOME-CONTINUING> 9,213,000
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 9,213,000
<EPS-PRIMARY> 1.07
<EPS-DILUTED> 1.07
<RESERVE-OPEN> 0
<PROVISION-CURRENT> 0
<PROVISION-PRIOR> 0
<PAYMENTS-CURRENT> 0
<PAYMENTS-PRIOR> 0
<RESERVE-CLOSE> 0
<CUMULATIVE-DEFICIENCY> 0
</TABLE>
