SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
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Quarterly Report Under Section 13 or 15 (d)
of the Securities Exchange Act of 1934
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For Quarter Ended Commission file number
JuneSeptember 30, 1998 0-5534
BALDWIN & LYONS, INC.
(Exact name of registrant as specified in its charter)
INDIANA 35-0160330
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(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
1099 North Meridian Street, Indianapolis, Indiana 46204
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (317) 636-9800
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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, and (2) has been subject to such filing
requirements for the past 90 days.
Yes [ X ] No_[_[ No ]
Indicate the number of shares outstanding of each of the issuer's classes of
common stock as of August 7,November 9, 1998:
TITLE OF CLASS NUMBER OF SHARES OUTSTANDING
Common Stock, No Par Value:
Class A (voting) 2,394,8542,389,854
Class B (nonvoting) 11,346,520
Index to Exhibits located on page 13.11,323,496
PART I - FINANCIAL INFORMATION
ITEM 1 FINANCIAL STATEMENTS
BALDWIN & LYONS, INC. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS, EXCEPT PER SHARE DATA)
JuneSEPTEMBER 30 December 31
1998 1997
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ASSETS
Investments:
Fixed maturities $ 266,174244,630 $ 276,109
Equity securities 168,245134,562 158,614
Short-term and other 17,80719,890 17,902
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452,226399,082 452,625
Cash and cash equivalents 23,42640,053 23,402
Accounts receivable 28,26223,170 21,454
Reinsurance recoverable 46,50748,113 47,276
Other assets 14,05914,935 12,258
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$ 564,480525,353 $ 557,015
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LIABILITIES AND SHAREHOLDERS' EQUITY
Reserves for losses and loss expenses $ 195,122191,499 $ 197,195
Reserves for unearned premiums 27,53524,091 18,806
Accounts payable and accrued expenses 30,01430,701 29,662
Deferred federal income taxes 14,2542,701 16,249
Current federal income taxes 1,35335 1,140
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268,278249,027 263,052
Shareholders' equity:
Common stock-no par value 733 730
Additional paid-in capital 41,41641,445 41,361
Unrealized net gains on investments 40,53817,474 45,614
Retained earnings 213,515216,674 206,258
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296,202276,326 293,963
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$ 564,480525,353 $ 557,015
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Number of common and common
equivalent shares outstanding 13,85013,846 13,845
Book value per outstanding share $21.39$19.96 $21.23
See notes to condensed consolidated financial statements.
BALDWIN & LYONS, INC. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
(IN THOUSANDS, EXCEPT PER SHARE DATA)
Three Months Ended Six Months Ended
JuneTHREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30 JuneSEPTEMBER 30
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1998 1997 1998 1997
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REVENUES
Net premiums earned $ 18,85517,293 $ 14,98716,633 $ 35,84053,133 $ 28,30944,942
Net investment income 4,612 4,664 9,235 9,2754,754 4,534 13,989 13,809
Realized net gains on investments 2,285 3,887 4,624 9,331917 4,493 5,541 13,824
Commissions and other income 454 441 769 819509 480 1,278 1,299
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26,206 23,979 50,468 47,73423,473 26,140 73,941 73,874
EXPENSES
Losses and loss expenses incurred 10,810 9,486 21,532 18,34910,521 10,670 32,053 29,019
Other operating expenses 7,304 5,421 14,098 10,6236,087 6,394 20,185 17,017
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18,114 14,907 35,630 28,97216,608 17,064 52,238 46,036
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INCOME BEFORE FEDERAL INCOME TAXES 8,092 9,072 14,838 18,7626,865 9,076 21,703 27,838
Federal income taxes 2,471 2,833 4,501 5,9502,000 2,849 6,501 8,799
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NET INCOME $ 5,6214,865 $ 6,2396,227 $ 10,33715,202 $ 12,81219,039
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PER SHARE DATA - BASIC AND DILUTED:
Income before realized net gains $ .30.31 $ .26.24 $ .53.84 $ .48.72
Realized net gains on investments .11 .18 .22 .43.04 .21 .26 .64
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NET INCOME $ .41.35 $ .44.45 $ .751.10 $ .911.36
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DIVIDENDSDividends $ .10 $ .10 $ .20.30 $ .20
=========== =========== =========== ===========.30
RECONCILIATION OF SHARES OUTSTANDING:
Average shares outstanding - basic 13,737 13,822 13,716 13,84413,740 13,733 13,724 13,807
Dilutive effect of options outstanding 137 190 159130 191 150 190
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Average shares outstanding - diluted 13,870 13,924 13,874 14,012 13,875 14,03413,997
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See notes to condensed consolidated financial statements.
BALDWIN & LYONS, INC. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
(DOLLARS IN THOUSANDS)
Six Months Ended
JuneNINE MONTHS ENDED
SEPTEMBER 30
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1998 1997
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Net cash provided by operating activities $ 8,2089,346 $ 6,8633,527
Investing activities:
Purchases of long-term investments (97,539) (113,595)(136,854) (191,325)
Proceeds from sales or maturities
of long-term investments 93,181 127,556153,305 199,401
Net sales (purchases) of
short-term investments (2) 629(2,903) 3,710
Other investing activities (839) (1,060)(1,719) (1,306)
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Net cash provided by investing activities (5,199) 13,53011,829 10,480
Financing activities:
Dividends paid to shareholders (2,744) (2,768)(4,118) (4,139)
Cost of treasury stock (280) (3,088)(446) (5,116)
Proceeds from sales of common stock 3940 1
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Net cash used in financing activities (2,985) (5,855)(4,524) (9,254)
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Increase in cash and cash equivalents 24 14,53716,651 4,753
Cash and cash equivalents at
beginning of period 23,402 12,117
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Cash and cash equivalents at end of period $ 23,42640,053 $ 26,65516,870
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See notes to condensed consolidated financial statements.
Notes to Condensed Unaudited Consolidated Financial StatementsNOTES TO CONDENSED UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
(1) The accompanying unaudited condensed financial statements have been
prepared in accordance with the instructions to Form 10Q and 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
fair presentation have been included. Operating results for the interim periods
are not necessarily indicative of the results that may be expected for the year
ended December 31, 1998. Interim financial statements should be read in
conjunction with the Company's annual audited financial statements.
(2) Forward-looking statements in this report are made pursuant to the safe
harbor provisions of the Private Securities Litigation Reform Act of 1995.
Investors are cautioned that such forward-looking statements involve inherent
risks and uncertainties. Readers are encouraged to review the Company's annual
report for its full statement regarding forward-looking information.
(3) The following line items from the Statements of Income are presented net of
the reinsurance amounts shown below.
1998 1997
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Quarter ended JuneSeptember 30:
Net premiums earned $ 2,4683,501 $ 1,9142,563
Losses and loss expenses 382 5,2692,315 4,809
Other operating expenses (528) (120)
Six(1,093) (236)
Nine months ended JuneSeptember 30:
Net premiums earned 4,772 3,8698,273 6,432
Losses and loss expenses 511 2,3532,826 7,162
Other operating expenses (770) (329)(1,863) (565)
(4) The net realized and unrealized loss for the quarter ended JuneSeptember 30,
1998 was $1,938$18,373 and compares to total realized and unrealized income of $15,621$13,121
for the quarter ended JuneSeptember 30, 1997. For the sixnine months ended JuneSeptember
30, 1998, totalthe net realized and unrealized incomeloss was $5,159$13,214 and compares to total
realized and unrealized income of $9,772$22,892 for the sixnine months ended JuneSeptember
30, 1997.
(5) If the Company had adopted Financial Accounting Standards Board Statement
No. 123, Accounting for Stock-Based Compensation, net income for the quarter and
sixnine months ended JuneSeptember 30, 1998 would have been approximately $255$254 and $509$763
lower, respectively ($.02 per share and $.04$.06 per share, respectively).
ITEM 2 MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
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OF OPERATIONS
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LIQUIDITY AND CAPITAL RESOURCES
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The Company generally experiences positive cash flow from operations resulting
from the fact that premiums are collected on insurance policies in advance of
the disbursement of funds in payment of claims. Operating costs of the
property/casualty insurance subsidiaries, other than loss and loss expense
payments and commissions paid to related agency companies, generally average
between 25% and 35% of premiums earned and the remaining amount is available for
investment for varying periods of time pending the settlement of claims relating
to the insurance coverage provided. For the sixnine months ended JuneSeptember 30,
1998, positive cash flow from operations totaled $8.2$9.3 million, an increase from
$6.9$3.5 million generated during the first halfnine months of 1997. The increased cash
flows are associated with increased premium volume from the Company's new products,
primarily private passenger automobile coverages. Management expects direct
premium revenues from trucking insurance products to remain level during the
remainder of 1998; however, overall gross insurance revenues are expected to
increase due to continued growth in the Company's private passenger automobile
program. New reinsurance arrangements, effective June 1, 1998, will resulthave resulted in
significant reductions in net premiums earned on the Company's fleet trucking
products starting withduring the third quarter. Management anticipates that losses and
underwriting expenses will also be reduced significantly as the result of these
new arrangements.
For several years, the Company's investment philosophy has emphasized the
purchase of relatively short-term instruments with maximum quality and
liquidity. The average life of the Company's fixed income (bond and short-term
investment) portfolio was approximatelyless than 3 years at JuneSeptember 30, 1998.
The Company's assets at JuneSeptember 30, 1998 included $26.9$40.1 million in investments
classified as short-term or cash equivalents which were readily convertible to
cash without significant market penalty. In addition, fixed maturity
investments totaling $76.3$51.2 million will mature within the twelve month period
following JuneSeptember 30, 1998. The Company believes that these liquid
investments are more than sufficient to provide for projected claim payments and
operating cost demands.
Consolidated shareholders' equity totaled $296.2$276.3 million at JuneSeptember 30, 1998
and includes $278.9$254.6 million representing GAAP shareholder's equity of insurance
subsidiaries, of which $39.4$35.7 million may be transferred by dividend or loan to
the parent company without approval by, or notification to, regulatory
authorities. An additional $213.7$192.4 million of shareholder's equity of such
insurance subsidiaries may be advanced or loaned to the Company with prior
notification to, and approval from, regulatory authorities. Management believes
that these restrictions pose no material liquidity concerns to the Company. The
financial strength and stability of the subsidiaries would permit ready access
by the parent company to short-term and long-term sources of credit, if
necessary. In addition, the parent company had cash and marketable securities
valued at $42.0$34.5 million at JuneSeptember 30, 1998.
The decrease in shareholders' equity from December 31, 1997 included a decrease
in unrealized appreciation on investments of $28.1 million. Approximately one-
half of the decrease in unrealized gains from December 31, 1997 is due to a
significant decline in the value of a single equity position with the balance
reflecting the effect of a general equities market decline during the third
quarter.
RESULTS OF OPERATIONS
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COMPARISONS OF SECONDTHIRD QUARTER, 1998 TO SECONDTHIRD QUARTER, 1997
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Net premiums earned increased $3.9$.7 million during the secondthird quarter of 1998 as
compared to the same period of 1997. The increased premium volume is primarily
attributable to the continued growth of the Company's private passenger
automobile program, premiums from which totaled $8.1 million for the quarter, an
increase of $4.1$3.4 million (103%(72%) from the prior year. Premiums earned for this
program have increased each quarter since its inception in 1995. DeclinesThe increase
in private passenger automobile premium was largely offset by decreases in
premium earned from the Company's fleet trucking products and voluntary
assumptions from property catastrophe pools of $.2$2.2 million and $.3$.6 million,
respectively,respectively. Lower net premiums on trucking products resulted from new treaty
reinsurance arrangements effective June 1, 1998, whereby the Company retains
less risk exposure than under previous treaties. Direct premiums from trucking
products were largely offset by growth inessentially flat with the Company's small fleet
trucking and small business workers' compensation programs.prior year.
Net investment income during the secondthird quarter of 1998 was level with5% higher than the
secondthird quarter of 1997. Overall pre-tax and after tax yields were consistent
with the secondthird quarter of 1997.
The secondthird quarter 1998 net realized gain of $2.3$.9 million consists of net gains on
equity securities and fixed maturities investments of $2.6$1.0 million and $.1
million, respectively, and net losses of $.3$.2 million on other securities.
Losses and loss expenses incurred during the secondthird quarter of 1998 increased
$1.3 million from that experienced duringwere level
with the secondthird quarter of 1997. The
increase isIncreased losses and loss expenses incurred for
the private passenger automobile and small fleet trucking programs were offset
by decreases in losses and loss expenses for the fleet trucking and voluntary
reinsurance assumed programs. Fleet trucking losses are lower for the quarter
due primarily to the continued growthnew reinsurance agreements. Losses from the Company's private
passenger automobile business.voluntary
assumptions are lower due to decreased participation in certain catastrophe
pools. Loss and loss expense ratios for the comparative secondthird quarters were as
follows:
1998 1997
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Large and medium fleet trucking 65.6% 52.5%55.9% 67.2%
Voluntary reinsurance assumed 6.1 79.856.4 57.1
Private passenger automobile 70.0 76.560.3 66.5
Small fleet trucking 45.7 35.4100.2 69.6
All lines 57.3 63.360.8 64.2
Approximately 5.5 points of the 1998 loss ratio for fleet trucking results from
less favorable development on 1997 and prior claims with the remainder coming
from current year accidents. Voluntary reinsurance assumed loss ratios were
lower as the result of favorable experience on all inforce treaties. In
addition, the 1997 quarter included $1.0 million in adverse development on
losses from a former wholly-owned subsidiary under a reinsurance treaty which is
no longer inforce. The fluctuations in the loss ratios for the other lines are
not considered unusual.
Other operating expenses for the secondthird quarter of 1998 increased $1.9decreased $.3 million
from the secondthird quarter of 1997. The consolidated expense ratio of the Company's
insurance subsidiaries was 34.1%28.3% for the secondthird quarter of 1998 compared to 32.2%34.5%
for the secondthird quarter of 1997. The increasedecrease in the consolidated expense ratio
reflects the effect of promotional and system
development costs associated with the Company'sceding commission income generated from new product lines which, for
GAAP purposes, can not be deferred and amortized over the lifereinsurance
treaties effective in June of policies
written.this year. The ratio of consolidated other
operating expenses to total revenue (adjusted for realized gains) was 30.5%27.0%
during the secondthird quarter of 1998 compared to 27.0%29.5% for the 1997 secondthird quarter.
The effective federal tax rate for consolidated operations for the secondthird quarter
of 1998 was 30.5%29.1% and is less than the statutory rate primarily because of tax
exempt investment income.
As a result of the factors mentioned above, principally lower realized capital
gains, net income decreased $.6$1.4 million (9.9%(21.9%) during the secondthird quarter of
1998 as compared with the 1997 secondthird quarter.
COMPARISONS OF SIXNINE MONTHS ENDED JUNESEPTEMBER 30, 1998 TO
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SIX------------------------------------------------------
NINE MONTHS ENDED JUNESEPTEMBER 30, 1997
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Net premiums earned increased $7.5$8.2 million (25.8%(18.2%) during the first sixnine months
of 1998 as compared to the same period of 1997. The increased premium volume is
primarily attributable to the continued growth of the Company's private
passenger automobile program. Premium earned from this program totaled $14.3$22.4
million for the year to date, an increase of $7.1$10.5 million (98%(88%) from the prior
year period. The Company also experienced modest growth in itsPremiums from the Company's small fleet trucking and small
business workers' compensation programs whilealso increased marginally. These
increases were partially offset by decreases in premiums from the Company's
fleet trucking products and voluntary reinsurance assumed of $2.4 million and
$.6 million, respectively. Fleet trucking premiums were level with 1997.lower due to new
reinsurance treaties effective June 1, 1998 whereby the Company's risk exposure
has been significantly reduced.
Net investment income during the first half of 1998 period was level with the 1997 period.
Overall pre-tax and after tax yields were also consistent with 1997 yields.
The net realized gain on investments of $4.6$5.6 million for the first sixnine months
of 1998 consists nearly entirely of net gains on equity securities.
Losses and loss expenses incurred during the first sixnine months of 1998 increased
$3.2$3.0 million from the first six months of 1997 forperiod due primarily to the same reasons provided forgrowth in the quarterly comparison above.private
passenger automobile program. Loss and loss expense ratios for the comparative
sixnine month periods were as follows:
1998 1997
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Fleet trucking 56.5% 60.1%56.3% 62.6%
Voluntary reinsurance assumed 40.0 62.944.7 60.9
Private passenger automobile 76.2 75.570.4 71.9
Small fleet trucking 56.4 46.074.1 54.3
All lines 60.1 64.860.3 64.6
Other operating expenses increased $3.5$3.2 million (32.7%(18.6%) during the first sixnine
months of 1998 compared to the same period of 1997. The consolidated expense
ratio of the Company's insurance subsidiaries was 34.1%32.2% for 1998 compared to
31.8%32.8% for 1997 for the same reasons provided above for the quarterly comparison.1997. The ratio of other operating expenses to total revenue
(adjusted for realized gains) was 30.8%29.5% for 1998 compared to 27.7%28.3% for 1997.
The effective federal tax rate for consolidated operations for the first sixnine
months of 1998 was 30.3%30.0% and is less than the statutory rate primarily because
of tax exempt investment income.
As a result of lower realized capital gains, net income for the first sixnine
months of 1998 was $10.3$15.2 million, down 19.3%20.2% from the comparable 1997 period.
FORWARD-LOOKING INFORMATION
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Any forward-looking statements in this report, including without limitation,
statements relating to the Company's plans, strategies, objectives,
expectations, intentions and adequacy of resources, are made pursuant to the
safe harbor provisions of the Private Securities Litigation Reform Act of 1995.
Investors are cautioned that such forward-looking statements involve risks and
uncertainties including without limitation the
following: (i) the Company's plans, strategies, objectives, expectations and
intentions are
subject to change at any time at the discretion of the Company; (ii) the
Company's business is highly competitive and the entrance of new competitors
into or the expansion of the operations by existing competitors in the Company's
markets and other changes in the market for insurance products could adversely
affect the Company's plans and results of operations; (iii) other risks and
uncertainties indicated from time to time in the Company's filings with the
Securities and Exchange Commission; and (iv) other risks and factors which may
be beyond the control or foresight of the Company.
YEAR 2000
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The Year 2000 Issue is the result of computer programs being written using two
digits rather than four to define the applicable year. Any of the Company's
computer programs that have time-sensitive features may recognize a date using
"00" as the year 1900 rather than the year 2000. This could result in a system
failure or miscalculations causing disruptions of operations, including, among
other things, a temporary inability to process transactions, send invoices, or
engage in normal business activities. The insurance industry is especially
aware of the Year 2000 concern given that the majority of its products and
services are time and date sensitive (e.g., policy effective periods and loss
occurrence dates).
The Company has been in the process of developing software for its new and
rapidly expanding products since 1995. All internally developed new product
software is Year 2000 compliant, with minor exceptions, and currently handles
approximately 90% of the Company's processed transactions. The Company is also
engaged in an ongoing analysis of its remaining systems to determine the nature
and extent of existing deficiencies and the appropriate corrective solutions.
The Company believes that with modifications to existing software and
conversions to new software, the Year 2000 Issue will not pose significant
operational problems for its computer systems. However, if such modifications
and conversions are not made, or are not completed on a timely basis, the Year
2000 Issue could have a significant impact on the operations of the Company.
The Company is in communication with its significant suppliers and large
customers to determine the extent to which the Company's interface systems are
vulnerable to third party failures to remediate Year 2000 system deficiencies.
It is believed that the Company's total Year 2000 project costs will not be
significantly impacted by third party Year 2000 Issues based on presently
available information. However, there can be no guarantee that the systems of
other companies on which the Company's systems rely will be converted on a
timely basis and would not have an adverse effect on the Company's systems. The
Company has determined it has no significant exposure to contingencies related
to the Year 2000 Issue for the products it has sold.
The Company will utilize existing staff and other internal resources to
reprogram and test its internally developed software, and to test its purchased
software, for Year 2000 compliance. Any internally developed software that is
deemed unworthy of Year 2000 conversion will be replaced with new internally
developed or purchased software that is Year 2000 compliant. Any currently
owned purchased software for which Year 2000 upgrades are unavailable will also
be replaced with purchased software that is Year 2000 compliant. The Company
anticipates completing the Year 2000 project by the first quarter of 1999. The
majority of the past and future costs associated with the Year 2000 project can
be attributed to internal staffing requirements associated with the development
of new product software andmuch of which would have largely been incurred regardless of the
Year 2000 Issue. These costs, and the costs associated with the acquisition of
Year 2000 compliant software from outside vendors, are not material with respect
to the Company's operations or financial position.
With regard to computer hardware and other non-information technology systems,
the Company continuously reviews these areas and maintains, as nearly as
possible, the most current hardware available. Again, this effort has been
necessitated more as a result of the rapid growth of the Company's new products
rather than Year 2000 concerns. As such, management does not anticipate
potential problems with hardware and other non-information technology systems to
be significant.
The costs of the project and the date on which the Company believes it will
complete its Year 2000 effort are based on management's best estimates, which
were derived utilizing numerous assumptions of future events, including the
continued availability of certain resources, third party modification plans and
other factors. However, there can be no guarantee that these estimates will be
achieved and actual results could differ materially from those anticipated.
Specific factors that might cause such material differences include, but are not
limited to, the availability and cost of personnel trained in this area, the
ability to locate and correct all relevant computer codes, and similar
uncertainties.
PART II - OTHER INFORMATION
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ITEM 6 (a) EXHIBITS
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Number and caption from Exhibit
Table of Regulation S-K Item 601 Exhibit No.
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(11) Statement regarding computation EXHIBIT 11 --
of per share earnings Computation of Per Share
Earnings
ITEM 6 (b) REPORTS ON FORM 8-K
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No reports on Form 8-K have been filed by the registrant during the three months
ended JuneSeptember 30, 1998.
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.
BALDWIN & LYONS, INC.
Date August 13,November 12, 1998 By /s/ Gary W. Miller
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Gary W. Miller, Chairman and CEO
Date August 13,November 12, 1998 By /s/ G. Patrick Corydon
-------------------------------------- --------------------------------
G. Patrick Corydon,
Vice President - Finance
(Principal Financial and
Accounting Officer)
BALDWIN & LYONS, INC.
Form 10-Q for the fiscal quarter
ended JuneSeptember 30, 1998
INDEX TO EXHIBITS
Begins on sequential
page number of Form
Exhibit Number 10-Q
--------------------------------- ---------------------------------------------------------
EXHIBIT 11 File herewith electronically
Computation of per share earnings
EXHIBIT 27 File herewith electronically
Financial Data Schedule
BALDWIN & LYONS, INC.
FORM 10-Q, EXHIBIT 11
COMPUTATION OF EARNINGS PER SHARE
Three Months Ended Six Months Ended
JuneTHREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30 JuneSEPTEMBER 30
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1998 1997 1998 1997
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BASIC:
Average number of shares
outstanding 13,736,511 13,821,503 13,716,236 13,844,11113,740,369 13,732,625 13,724,368 13,806,541
============ ============ ============ ============
Net Income $ 5,621,301 $ 6,238,679 $10,337,382 $12,811,548$4,864,509 $6,227,896 $15,201,891 $19,039,444
============ ============ ============ ============
Per share amount $ .41.35 $ .44.45 $ .751.10 $ .911.36
============ ============ ============ ============
DILUTED:
Average number of shares
outstanding 13,736,511 13,821,503 13,716,236 13,844,11113,740,369 13,732,625 13,724,368 13,806,541
Dilutive stock options--based on
treasury stock method using
average market price 137,177 190,053 158,527 190,204130,172 190,843 149,986 190,305
------------ ------------ ------------ ------------
Totals 13,873,688 14,011,556 13,874,763 14,034,31513,870,541 13,923,468 13,874,354 13,996,846
============ ============ ============ ============
Net Income $ 5,621,301 $ 6,238,679 $10,337,382 $12,811,548$4,864,509 $6,227,896 $15,201,891 $19,039,444
============ ============ ============ ============
Per share amount $ .41.35 $ .44.45 $ .751.10 $ .911.36
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