SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
X QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 1997
Commission file number 33-83116
ASSOCIATED BUSINESS & COMMERCE
INSURANCE CORPORATION
(Exact name of Registrant as specified in its charter)
FLORIDA 65-0496132
(State or other jurisdiction of (IRS Employer Identification No.)
incorporation of organization)
4700 NW BOCA RATON BOULEVARD, SUITE 400, BOCA RATON, FL 33431
(Address of principal executive offices) (Zip Code)
Registrant's telephone number,
including area code (561) 997-0708
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(b) 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 [ ]
The number of the outstanding Preferred Stock held by nonaffiliates of the
Registrant on May 12, 1997, was 229,912 shares.
<PAGE>
ASSOCIATED BUSINESS & COMMERCE
INSURANCE CORPORATION
TABLE OF CONTENTS
<TABLE>
<S> <C>
Part I. Financial Information
Statement of Operations (unaudited), three months ended March 31, 1997 and 1996.......................3
Balance Sheets, March 31, 1997 (unaudited) and December 31, 1996......................................4
Statements of Changes in Stockholders' Equity, three months ended
March 31, 1997 (unaudited) and the year ended December 31, 1996....................................6
Statement of Cash Flows (unaudited), three months ended March 31, 1997 and 1996.......................7
Notes to Financial Statements (unaudited) ............................................................8
Management's Discussion and Analysis of Financial Condition and Results of Operations................11
Part II Other Information
Item 1. Legal Proceedings.........................................................................13
Item 2. Changes in Securities.....................................................................13
Item 3. Defaults Upon Senior Securities...........................................................13
Item 4. Submission of Matters to a Vote of Security Holders.......................................13
Item 5. Other Information.........................................................................13
Item 6. Exhibits and Reports on Form 8-K..........................................................13
Signatures..............................................................................................14
Exhibits..................................................................................................
</TABLE>
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<TABLE>
<CAPTION>
ASSOCIATED BUSINESS & COMMERCE INSURANCE CORPORATION
STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED MARCH 31, 1997 AND 1996
UNAUDITED
MARCH 31, MARCH 31,
1997 1996
-------------- ---------------
Revenues:
<S> <C> <C>
Standard premium earned, net of discounts $ 6,786,693 $ 7,079,786
Less premium ceded for reinsurance 4,894,874 4,979,331
-------------- ---------------
Net premium earned 1,891,819 2,100,455
-------------- ---------------
Less loss and loss adjustment expenses 1,159,025 1,382,313
-------------- ---------------
Premiums available for operations 732,794 718,142
Interest earnings 117,680 248,041
-------------- ---------------
850,474 966,183
Policy acquisition and other underwriting expenses 1,025,229 848,359
-------------- ---------------
Income before income taxes (174,755) 117,824
Income tax expense (credits) (59,000) 40,000
-------------- ---------------
Net income $ (115,755)$ 77,824
============== ===============
Earnings per common share and
common share equivalent $ (1.13)$ 0.76
============== ===============
</TABLE>
The accompanying notes are an integral part of these financial statements.
- 3 -
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<TABLE>
<CAPTION>
ASSOCIATED BUSINESS & COMMERCE INSURANCE CORPORATION
BALANCE SHEETS
MARCH 31, 1997 (UNAUDITED) AND DECEMBER 31, 1996
ASSETS
MARCH 31, DECEMBER 31,
1997 1996
-------------- ---------------
(UNAUDITED)
<S> <C> <C>
Investments with fixed maturities $ 7,255,700 $ 8,708,519
Cash and cash equivalents 2,979,299 2,155,583
Premiums receivable, less allowance for
doubtful accounts 1997 $1,390,982; 1996 $1,247,602 5,361,686 4,078,520
Reinsurance and related recoverables:
Loss and loss adjustment expenses 22,262,250 21,516,000
Prepaid reinsurance premiums 113,262 49,782
Accrued investment income 74,071 122,318
Prepaid expenses 3,555,362 3,200,485
Deferred and refundable income taxes 774,000 1,474,093
Deferred policy acquisition costs 240,708 260,004
Equipment, less accumulated depreciation
1997 $147,216; 1996 $102,709 633,587 640,202
Other assets, net 75,435 76,948
-------------- ---------------
$ 43,325,360 $ 42,282,454
============== ===============
</TABLE>
The accompanying notes are an integral part of these financial statements.
- 4 -
<PAGE>
<TABLE>
<CAPTION>
ASSOCIATED BUSINESS & COMMERCE INSURANCE CORPORATION
BALANCE SHEETS - CONTINUED
MARCH 31, 1997 (UNAUDITED) AND DECEMBER 31, 1996
RESERVES, LIABILITIES AND STOCKHOLDERS' EQUITY
MARCH 31, DECEMBER 31,
1997 1996
-------------- ---------------
(UNAUDITED)
<S> <C> <C>
Reserves for losses and loss adjustment expenses $ 31,154,606 $ 31,982,392
Liabilities:
Accounts payable and accrued expenses 1,819,572 2,099,679
Unearned and return premium payable 2,744,699 2,411,708
Advances from parent 396,485 0
Income taxes payable 90,907 0
Deferred gain on loss portfolio transfer 594,209 644,209
-------------- ---------------
5,645,872 5,155,596
Commitments and contingencies
Total reserves and liabilities 36,800,478 37,137,988
Stockholders' equity:
Convertible preferred stock series A, 6% cumulative,
$1 par value, authorized shares 1,900,000; 252,891 shares
outstanding at March 31, 1997; 248,885 shares issued
and outstanding at December 31, 1996 aggregate liquidation
preference of $2,528,910 at March 31, 1997 and
$2,488,850 at December 31, 1996 252,891 248,885
Additional paid - in capital, preferred series A 2,243,981 2,251,816
Convertible preferred stock series B, $1 par value,
authorized, issued and outstanding 5,100,000 shares at
March 31, 1997 and 3,600,000 shares at December 31, 1996 5,100,000 3,600,000
Common stock, $1 par value, authorized 15,000,000
shares; 102,501 shares issued and outstanding
at March 31, 1997 and December 31, 1996 102,501 102,501
Accumulated (deficit) (1,174,491) (1,058,736)
-------------- ---------------
6,524,882 5,144,466
-------------- ---------------
$ 43,325,360 $ 42,282,454
============== ===============
</TABLE>
The accompanying notes are an integral part of these financial statements.
- 5 -
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<TABLE>
<CAPTION>
ASSOCIATED BUSINESS & COMMERCE INSURANCE CORPORATION
STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
FOR THE THREE MONTHS ENDED MARCH 31, 1997 (UNAUDITED) AND
THE YEAR ENDED DECEMBER 31, 1996
ADDITIONAL
PAID-IN
PREFERRED STOCK CAPITAL RETAINED
--------------------------- PREFERRED COMMON EARNINGS
SERIES A SERIES B SERIES A STOCK (DEFICIT)
----------- --------------- ------------- -------------- ---------------
<S> <C> <C> <C> <C> <C>
Balance, January $ 221,805 $ 3,200,000 $ 1,996,845 $ 102,501 $ (21,880)
Preferred stock issued 55,972 400,000 503,748
Preferred stock canceled (28,892) (248,177)
Preferred dividends
paid at $.60 per share (114,227)
Net (loss) (922,629)
----------- --------------- ------------- -------------- ---------------
Balance, December 31, 1996 248,885 3,600,000 2,252,416 102,501 (1,058,736)
Preferred stock issued
(Unaudited) 4,006 1,500,000 36,054
Preferred stock canceled
(Unaudited) (44,489)
Net income (Unaudited) (115,755)
----------- --------------- ------------- -------------- ---------------
Balance March 31,
1997 (Unaudited) $ 252,891 $ 5,100,000 $ 2,243,981 $ 102,501 $ (1,174,491)
=========== =============== ============= ============== ===============
</TABLE>
The accompanying notes are an integral part of these financial statements.
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<PAGE>
<TABLE>
<CAPTION>
ASSOCIATED BUSINESS & COMMERCE INSURANCE CORPORATION
STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED MARCH 31, 1997 AND 1996
(UNAUDITED)
MARCH 31, MARCH 31,
OPERATING ACTIVITIES 1997 1996
-------------- ---------------
<S> <C> <C>
Net income (loss) $ (115,755)$ 77,824
Adjustments:
Change in net insurance reserves (1,574,036) (1,727,643)
Change in premiums receivable (1,283,166) 967,701
Accrued income taxes 90,907 (1,065,300)
Deferred and refundable income taxes 687,520 0
Other (282,201) 345,806
-------------- ---------------
Net cash and cash equivalents
(used in) operating activities (2,476,731) (1,401,612)
-------------- ---------------
INVESTING ACTIVITIES
Proceeds from investment maturities 2,636,464 1,875,806
Purchase of investments (1,190,781) 0
Payments for other assets 0 (112,251)
Purchase of equipment (37,892) (39,392)
Payments of advances, net 0 (143,750)
-------------- ---------------
Net cash and cash equivalents
provided by investing activities 1,407,791 1,580,413
-------------- ---------------
FINANCING ACTIVITIES
Net advances received from parent 396,485 0
Net proceeds from issuance of preferred stock 1,496,171 297,310
-------------- ---------------
Net cash and cash equivalents provided
by financing activities 1,892,656 297,310
-------------- ---------------
Net increase in cash and cash equivalents 823,716 476,111
Cash and cash equivalents, beginning of period 2,155,583 2,242,245
-------------- ---------------
Cash and cash equivalents, end of period $ 2,979,299 $ 2,718,356
============== ===============
</TABLE>
The accompanying notes are an integral part of these financial statements.
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ASSOCIATED BUSINESS & COMMERCE INSURAQQ
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 1997 AND 1996
UNAUDITED
NOTE 1 - BASIS OF PRESENTATION
The accompanying financial statements have been prepared in conformity with
generally accepted accounting principles.
These financial statements rely, in part, on estimates. In the opinion of
management, all necessary adjustments have been reflected for a fair
presentation of the results of operations, financial position and cash flows
in the accompanying unaudited financial statements. The results for the period
are not necessarily indicative of the results to be expected for the entire
year.
Reference should be made to the "Notes to Financial Statements" on pages F-8
through F-27 of the registrant's Form 10-K for the year ended December 31,
1996. The amounts in those notes have not changed except as a result of
transactions in the ordinary course of business or as otherwise disclosed in
these notes.
Some figures in the 1996 financial statements have been reclassified to
conform with the 1997 presentation. These reclassifications have no effect on
net income or stockholders' equity, as previously reported.
NOTE 2 - EARNINGS PER SHARE
Earnings per common share were calculated by dividing net income by the
adjusted average number of common shares outstanding. There was no adjustment
of net income required because there were no preferred stock dividends
declared during the period. There was no change in the average number of
outstanding common shares for the periods ending March 31, 1997 and 1996, and
there was no dilution of common stock because the preferred stock is not
convertible to common stock before January 1, 2000.
NOTE 3 - INVESTMENTS
Investment activity for the period ending March 31, 1997 consisted of the
collection of maturities fixed maturity securities and proceeds from the sale
of securities to comply with regulatory portfolio requirements. Investment
activity for the period ending March 31, 1996 consisted entirely of the
collection of maturities and early call proceeds of fixed maturity securities.
-8-
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ASSOCIATED BUSINESS & COMMERCE INSURAQQ
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 1997 AND 1996
UNAUDITED
NOTE 4 - INCOME TAXES
The provision for income taxes for the periods ended March 31, 1997 and 1996
are as follows:
MARCH 31, MARCH 31,
1997 1996
---------- ---------
Federal income taxes
currently payable (refundable) $ (850,000) $ (15,300)
Deferred federal income taxes 791,000 55,300
---------- ---------
$ (59,000) $ 40,000
========== =========
NOTE 5 - REINSURANCE
The Company's financial statements reflect the effects of ceded reinsurance
transactions. The Company does not assume reinsurance in the ordinary course
of business. However, effective November 30, 1995, the Company, in a
transaction approved by the Florida Department of Insurance, assumed the
insurance assets and liabilities of Associated Business & Commerce Workers'
Compensation Self - Insurance Fund by virtue of a loss portfolio transaction.
The excess of premium received over losses assumed was treated as deferred LPT
premium on the balance sheet.
The deferred LPT premium is earned in the ratio of assumed losses paid to
total assumed losses. Deferred LPT premium earned for the periods ended March
31, 1997 and 1996 totalled $50,000 and $162,757, respectively.
Reinsurance contracts do nor relieve the Company from its obligation to pay
claims. Reinsurance does involves transferring certain risks the Company has
underwritten to other insurance companies who agree to share these risks. The
primary purpose of ceded reinsurance is to protect the company from potential
losses in excess of the amount it is prepared to accept. Effective January 1,
1997, the Company has modified its quota share reinsurance arrangements. The
Company now cedes 50% of written premium to TIG Reinsurance Company("TIG") and
20% to Underwriters Reinsurance Company ("Underwriters") with the
corresponding assumption by TIG and Underwriters of the Company's loss and
loss adjustment expenses.
The Company expects those with whom it has ceded reinsurance to honor their
obligations. In the event these companies are unable to honor their
obligations, the Company will pay the shortfall.
-9-
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ASSOCIATED BUSINESS & COMMERCE INSURAQQ
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 1997 AND 1996
UNAUDITED
NOTE 5 - REINSURANCE (CONTINUED)
The following table summarizes the effect of reinsurance on premiums earned
and insurance losses and loss adjustment expenses for the periods ended March
31, 1997 and 1996:
MARCH 31, MARCH 31,
1997 1996
----------- -----------
Premiums earned:
Direct $ 6,736,693 $ 6,917,029
Recognized from LPT
deferred gain 50,000 162,757
Ceded (4,894,874) (4,979,331)
----------- -----------
Net premiums earned $ 1,891,819 $ 2,100,455
=========== ===========
Insurance losses and
loss adjustment expenses:
Direct $ 3,839,915 $ 4,190,627
Ceded (2,680,890) (2,808,314)
----------- -----------
Net insurance losses $ 1,159,025 $ 1,382,313
=========== ===========
NOTE 6 - LEGAL PROCEEDINGS
From time to time, the Company may be involved in workers' compensation
proceedings relating to claims arising out of its operations in the normal
course of business. As of the date of the accountants' report, the Company is
not a party to any legal proceedings outside of its ordinary workers
compensation settlement business or proceedings instituted by the Company for
premium collection which management believes would materially affect the
financial position or operations of the Company with the exception of the
matter described below.
In July, 1992, the Fund filed a lawsuit in the State Circuit Court of Palm
Beach County, Florida, for breach of contract against Advanced Risk Management
Incorporated ("ARMI") claiming damages for excess fees and advances collected
by ARMI, the former service company of the Fund. A counterclaim was filed by
ARMI alleging breach of contract, breach of fiduciary duty and fraud. On
January 2, 1994, the court granted summary judgment in favor of the Fund with
respect to all of the counterclaims made by ARMI. The summary judgment was
appealed by ARMI and reversed by the Fourth District Court of Appeal, which
remanded the matter back to the trial court to resolve specific issues. On
December 15, 1995 the trial court granted the Fund's renewed motion for
summary judgment. ARMI has filed an appeal as to this judgment as well. On or
about April 10, 1997, the Fourth District Court of Appeal rendered its
decision affirming the final judgment of the trial court. The appellate
decision became final when the time period (15 days) elapsed for filing
motions to rehear expired and ARMI did not avail itself of the rehearing
privilege.
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<PAGE>
ASSOCIATED BUSINESS & COMMERCE
INSURANCE CORPORATION
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
MARCH 31, 1997
RESULTS OF OPERATIONS
The Company is reporting a loss before taxes for the first quarter of 1997 of
$175,000 based on premium volume of approximately $6.8 million compared to
income before taxes for the first quarter of 1996 of $118,000 based upon premium
volume of $7.1 million. Annualized premium as of March 31, 1997 amounts to
approximately $28 million or approximately equal to the amount reported for
calendar year 1996 as reported in the Company's Form 10-K. The Company's loss
ratio decreased from 65.8% for the quarter ended March 31, 1996 to 61.3% for the
quarter ended March 31, 1997.
The operating expense ratio increased from 40.4% for the first quarter of 1996
to 54.2% for the first quarter of 1997 due primarily to increases in marketing
and underwriting personnel and costs associated with the programming and
implementation of the Company's new policy administration software. These
additions to personnel and other increased costs were anticipated by the Company
in order to stimulate growth in premium writings which is the Company's primary
emphasis. Increases in operating costs while premium is remaining flat
necessarily results in a deterioration of the operating expense ratio.
The combined ratio, which is the sum of the loss ratio and expense ratio,
increased from 106.2% for the first quarter of 1996 to 115.5% for the first
quarter of 1997. The investment ratio (investment incomes divided by net earned
premium) decreased from 11.8% for the first quarter of 1996 to 6.2% for the
first quarter of 1997 resulting in operating ratios of 94.4% for the first
quarter of 1996 and 109.3% for the first quarter of 1997.
As reported in the Company's Form 10-K, premium ceded to reinsurers includes
proportional quota-share reinsurance at a 70% cession level, which is comparable
to the first quarter of 1996. As a result of the refinancing undertaken by the
Company's parent, Associated Business and Commerce Holdings, Inc. ("Holdings")
with TIG Reinsurance Company as discussed below, the quota-share reinsurance
provisions for 1997 differ from those in effect for 1996 through an increase in
the effective ceding commission from 27% in 1996 to approximately 28.3% for
1997. As a result, the ceding commission for the first quarter of 1997 is
approximately $10,000 higher than that for 1996 even though premium volumes
decreased by approximately $300,000.
As suggested above, the Company's primary emphasis is being directed toward the
development of new agency relationships and enhancements of product offerings to
existing insureds in an effort to increase premium volume in order to offset the
effects of the increases in fixed overhead. Without an increase in premium
volume, the Company may be forced to undertake reductions in overhead and/or
re-negotiate quota-share arrangements or take such other actions which could
adversely impact the Company's long term growth plan.
For statutory purposes, the Company reported a net loss of $3,745 for the first
quarter of 1997 compared to statutory income of $22,000 for the first quarter of
1996. The primary differences in these reportings compared to GAAP relate to the
provision for income taxes at the statutory level which expense is decreasing
given the decrease in the Company's net reserve as a result of the full
absorption of the 70% quota-share arrangements.
-11-
<PAGE>
ASSOCIATED BUSINESS & COMMERCE
INSURANCE CORPORATION
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
MARCH 31, 1997
LIQUIDITY AND CAPITAL RESOURCES
As anticipated, cash flows from operating activities for the first quarter of
1997 were a negative $2.5 million compared to negative cash flows of $1.4
million for 1996. This continuing negative cash flows from operations has been
anticipated because of the Company's quota-share arrangements with its
reinsurers.
The Company's quota-share arrangements were originally installed effective
October 1, 1995 and it is anticipated that payments to the reinsurers pursuant
to the quota-share treaties will exceed the amount of claim recoveries due from
the reinsurers through the end of 1997. Depending upon premium growth, it is
then anticipated that amounts due from reinsurers for claim recoveries will
offset amounts otherwise due for ceded premium with no further adverse impact
upon cash flows. However, if the Company's operating expenses, net of
quota-share reimbursements, exceed net operating revenues, then cash flows may
continue negative requiring further liquidations of fixed-maturity investments.
As described in the Company's Form 10-K, and as set forth within the statement
of changes in stockholders equity included in this filing, Holdings has invested
an additional $1,900,000 in the Company's Series B Preferred Stock between
December, 1996 and March 31, 1997 pursuant to Holdings' refinancing of its debt
owing to Underwriters Reinsurance Company. TIG Reinsurance Company has invested
a total of $6,000,000 in Holdings which has effectively increased Holdings'
investment in the Company by $2,400,000, of which $1,900,000 is in the form of
Series B Preferred and an additional $500,000 in the form of a working capital
advance. These new proceeds will further the Company's ability to weather the
current soft market of workers' compensation insurance in Florida and will
provide a cushion to the Company's statutory surplus which, as of March 31,
1997, is at approximately $6.1 million or approximately $2.1 million in excess
of the current required surplus of $4,000,000.
At this current level of statutory surplus, the Company could more than double
its premium writings which, as indicated above, is the Company's current primary
focus.
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ASSOCIATED BUSINESS & COMMERCE
INSURANCE CORPORATION
PART II - OTHER INFORMATION
MARCH 31, 1997
ITEM 1. LEGAL PROCEEDINGS
There have been no significant developments in those matters discussed in Item 3
of the Company's Form 10-K for 1996.
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
Not Applicable.
ITEM 5. OTHER INFORMATION
Not Applicable.
Item 6. Exhibits and Reports on Form 8-K.
a) EXHIBIT INDEX
Exhibit 27 Financial Data Schedule
b) Reports on Form 8-K - The Company filed no reports on Form 8-K during the
quarter ended March 31, 1997.
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<PAGE>
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.
ASSOCIATED BUSINESS & COMMERCE
INSURANCE CORPORATION
Registrant
Date: May 20, 1997 /s/ James R. Nau
-----------------------------
James R. Nau
President
Date: May 20, 1997 /s/ Clifford G. Merritt
-----------------------------
Clifford G. Merritt
Vice President, Finance
(Principal Financial and Accounting Officer)
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<PAGE>
EXHIBIT INDEX
EXHIBIT DESCRIPTION
- ------- -----------
27 Financial Data Schedule
<TABLE> <S> <C>
<ARTICLE> 7
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
STATEMENT OF OPERATIONS FOR THE THREE MONTHS ENDED MARCH 31, 1997 AND THE
BALANCE SHEET AS OF MARCH 31, 1997 AND IS QUALIFIED IN ITS ENTIRETY BY
REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> MAR-31-1997
<DEBT-HELD-FOR-SALE> 0
<DEBT-CARRYING-VALUE> 7,255,700
<DEBT-MARKET-VALUE> 6,935,831
<EQUITIES> 0
<MORTGAGE> 0
<REAL-ESTATE> 0
<TOTAL-INVEST> 7,255,700
<CASH> 2,979,299
<RECOVER-REINSURE> 22,262,250
<DEFERRED-ACQUISITION> 240,708
<TOTAL-ASSETS> 43,325,360
<POLICY-LOSSES> 31,154,606
<UNEARNED-PREMIUMS> 2,744,699
<POLICY-OTHER> 0
<POLICY-HOLDER-FUNDS> 0
<NOTES-PAYABLE> 0
0
7,596,872
<COMMON> 102,501
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 43,325,360
1,891,819
<INVESTMENT-INCOME> 117,680
<INVESTMENT-GAINS> (5,179)
<OTHER-INCOME> 0
<BENEFITS> 1,159,025
<UNDERWRITING-AMORTIZATION> 956,000
<UNDERWRITING-OTHER> 69,229
<INCOME-PRETAX> (174,755)
<INCOME-TAX> (59,000)
<INCOME-CONTINUING> (174,755)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (115,755)
<EPS-PRIMARY> (1.13)
<EPS-DILUTED> (1.13)
<RESERVE-OPEN> 31,982,392
<PROVISION-CURRENT> 1,159,025
<PROVISION-PRIOR> 0
<PAYMENTS-CURRENT> 87,323
<PAYMENTS-PRIOR> 2,547,895
<RESERVE-CLOSE> 31,154,606
<CUMULATIVE-DEFICIENCY> 0
</TABLE>
