PEOPLES BANCORP INC. - P.O. BOX 738 - MARIETTA, OHIO - 45750
www.peoplesbancorp.com
NEWS RELEASE
FOR IMMEDIATE RELEASE Contact:Jack Conlon
- --------------------- Chief Financial Officer
January 21, 2003 (740) 373-3155
PEOPLES BANCORP ANNOUNCES 29th CONSECUTIVE
YEAR OF INCREASED EARNINGS
---------------------------------------------------------------------
Earnings per share up 49% to $2.30
MARIETTA, Ohio - Peoples Bancorp Inc. (Nasdaq: PEBO) announced its
29th consecutive year of increased earnings, as net income reached record
levels in 2002 due in large part to strong net interest income and enhanced
non-interest revenues.
Earnings per diluted share were $2.30 in 2002, up 49% from $1.54 a year
ago, as net income totaled $18,752,000 in 2002 compared to $12,335,000 in 2001,
a 52% increase. For the fourth quarter of 2002, net income grew to $4,500,000,
or $0.54 per diluted share, from $3,537,000, or $0.45 per diluted share, for
2001's fourth quarter. Return on average equity improved to 17.69% for the year
ended December 31, 2002, and 15.25% for the fourth quarter of 2002, compared to
13.60% and 14.76% for the same periods in 2001, respectively.
Reported net income for the year and quarter ended December 31, 2002,
reflects the adoption of FASB Statement 142, "Goodwill and Other Intangible
Assets", on January 1, 2002, and FASB Statement 147, "Acquisitions of Certain
Financial Institutions", which is effective retroactive to January 1, 2002,
whereby goodwill is no longer amortized but will be subject to annual impairment
tests. Earnings per diluted share for the year ended and quarter ended December
31, 2001 would have been $1.72 and $0.49 per diluted share excluding goodwill
amortization of $1,846,000 and $492,000, respectively. On a comparative basis
without goodwill amortization, the current year net income per diluted share
increased 34% compared to 2001.
"We are pleased to report another year of record earnings," said
Robert E. Evans, Peoples' President and CEO. "Although challenging economic
conditions persisted throughout the year, our results in 2002 reflect a period
of continued expansion and improved performance, including double-digit earnings
growth and enhanced return on stockholder equity."
Evans continued, "The successful completion of our recent stock
offering strengthened Peoples' capital ratios, especially tangible capital,
which affords us additional opportunities to build upon our already strong
franchise through acquisitions, such as the planned acquisition of Kentucky
Bancshares." In mid-December 2002, Peoples completed the sale of 1,440,000
common shares, generating new capital of $32.1 million after offering expenses.
In early 2003, Peoples sold an additional 216,000 common shares in conjunction
with the option granted to the underwriters to cover over-allotments, generating
$4.8 million of capital.
In 2002, net interest income grew 16%, totaling $49,998,000 compared to
$43,133,000 in 2001, while net interest margin improved to 4.37%, from 4.11% a
year ago. The higher level of net interest income and improved net interest
margin is largely the result of very low interest rates throughout 2002, while a
modest increase in earnings assets, due in part to acquisitions, provided the
additional improvement. For the quarter ended December 31, 2002, net interest
income totaled $12,190,000 in 2002, up 8% from $11,244,000 in fourth quarter of
2001. Net interest margin was 4.05% in the fourth quarter of 2002 compared to
4.30% a year ago, as management continues to shift to longer-term funding and
the demand for lower rates on loans persists. Net interest income and margin in
the fourth quarter of 2002 were also adversely impacted by additional net
premium amortization of approximately $120,000 on mortgage-backed securities due
to increased prepayment speeds; an interest reversal of approximately $105,000
due to an incorrect accrual on a business loan; and net premium amortization of
approximately $80,000 on loans acquired in the First Colony acquisition.
"The recent interest rate environment has afforded us opportunities to
lower Peoples' costs of funds but also applied downward pressure on asset yields
due to loan repricings and refinancings," said Jack Conlon, Peoples' Chief
Financial Officer. "In addition, our focus in the second half of 2002 was to
secure longer-term funding to lock in current low rates, which resulted in some
compression of net interest margin. Since net interest income remains Peoples'
largest source of revenue, we will continue to execute strategies and manage our
asset-liability position to protect net income from future changes in interest
rates."
Non-interest income was $14,935,000 in 2002 versus $10,728,000 a year
ago, a 39% increase. For the three months ended December 31, 2002, non-interest
income totaled $3,975,000, up 6% from $3,743,000 for the fourth quarter of 2001.
Enhanced non-interest income in 2002 is primarily the result of higher levels of
deposit service charge income, while non-interest income in the fourth quarter
of 2001 was also enhanced by non-recurring income of $877,000 relating to a
demutualization.
Deposit account service charges totaled $1,977,000 in the fourth
quarter of 2002 compared to $1,049,000 for the final quarter of 2001, and
totaled $6,976,000 for the year ended December 31, 2002, up 93% from $3,608,000
the prior year. The introduction of the Overdraft Privilege program, coupled
with other changes to the assessment of cost recovery fees on deposit accounts
in late 2001, generated higher volumes of overdraft and non-sufficient funds
fees in 2002 and accounted for the increased deposit account service charge
income.
"The growth of non-interest revenues, and in particular deposit account
service charges, is a reflection of our commitment to grow top-line revenues
through the introduction of new products and services," commented Mark Bradley,
President and Chief Operating Officer of Peoples Bank. "In addition, our
needs-based approach to selling has allowed us to satisfy client needs and
enhance Peoples' other major sources of revenue. Ultimately, if we help make our
customers more successful, we will improve Peoples' long-term value and generate
additional benefits for every stakeholder."
Income from Peoples' business owned life insurance ("BOLI") increased
62% in the fourth quarter of 2002 compared to the same period last year, and
more than tripled for the year ended December 31. The fourth quarter increase is
the result of an adjustment in the mix of investment funds in early 2002, while
the timing of Peoples' BOLI purchase in mid-2001 accounted for the majority of
the increase compared to 2001. Insurance and investment commissions grew 31% in
2002 versus the prior year, a result of strong fixed annuity sales and continued
property and casualty commission growth. E-banking services grew revenues by 22%
in 2002, primarily due to clients utilizing Peoples' ATM and debit cards to
complete more of their transactions.
Peoples recognized a gain on sale of loans of $135,000 and $157,000 for
the quarter and year ended December 31, 2002, respectively, as a result of
selling a limited number fixed rate real estate loans into the secondary market.
In prior periods, Peoples either has acted as an agent with a national firm for
long-term, fixed rate real estate loans or retained the loans and thus did not
recognize any gains. Peoples also recognized net gains on securities
transactions of $114,000 and $216,000 for the quarter and year ended December
31, 2002, respectively, compared to net gains of $2,000 and $29,000 for the same
periods in 2001, respectively.
For the year-end December 31, 2002, non-interest expense totaled
$35,967,000 compared to $33,412,000 in 2001, as increased operating expenses
were partially offset by reduced intangible amortization expense due to new
accounting rules that resulted in Peoples ceasing amortization of all goodwill.
Non-interest expense of $9,261,000 for the fourth quarter of 2002 was up
slightly from 2001's fourth quarter total of $9,176,000.
Salaries and benefits remain Peoples' largest non-interest expense,
totaling $18,100,000 in 2002, up $2,510,000 from a year ago. This increase is
attributable to higher incentive plan expenses that correspond with Peoples'
improved earnings, as well as the addition of new associates and salary
increases necessary to retain and recruit key personnel. Professional fees and
marketing costs were up in 2002 due in large part to costs associated with
Peoples' implementation of "Free Checking" and "Overdraft Privilege" and other
strategic initiatives to attract new clients and grow revenues. Recent
acquisitions and investments in technology resulted in additional occupancy and
equipment costs in 2002, in particular depreciation expense. Peoples' adoption
of FASB Statements 142 and 147 resulted in no amortization of goodwill in 2002
compared to amortization expense of $1,846,000 in 2001; however, Peoples
continued to amortize other intangible assets, primarily core deposit
intangibles, which increased by 29%, or $145,000, as a result of acquisitions
which occurred in 2002.
"Operating expenses rose in 2002 due to continued investment in our
associates and technology, as well as from other strategies that have produced
numerous benefits, including new revenues and improved convenience, flexibility,
and speed of product delivery for our customers," said Bradley. "We recognize
the need to deliver products and services to our clients efficiently, and we
continue to make investments that enhance our ability to satisfy customer needs
and strengthen our business for the long-term."
At December 31, 2002, loans totaled $850.9 million, up $78.0 million
since year-end 2001. A significant portion of the loan growth is attributable to
Peoples acquiring loans of approximately $68 million as part of acquisitions in
2002. Peoples also experienced organic commercial loan growth of $38 million
throughout 2002, which was largely offset by declines in consumer loans. In the
fourth quarter, loan balances declined $16.7 million, from $867.6 million at
September 30, as commercial loan growth was offset by decreased balances in real
estate and consumer loans.
At December 31, 2002, nonperforming assets totaled $7,611,000, or 0.55%
of total assets, versus $7,653,000, or 0.56% of total assets, at September 30,
2002. The allowance for loan losses increased to $13.1 million at December 31,
2002, from $12.4 million at year-end 2001, due in part to an allowance of $0.3
million for loan losses acquired in the First Colony acquisition. As a percent
of nonperforming loans, the allowance was 175% at year-end 2002 versus 225% the
prior year-end, largely the result of an increase in nonperforming loans.
Peoples' provision for loan losses was $4,067,000 in 2002, up from $2,659,000 a
year ago, with $877,000 of the increase attributable to the Overdraft Privilege
program. The remaining increase in the provision is a result of management's
ongoing evaluation of the adequacy for loan losses, loan growth and other
factors affecting probable loan losses.
Net loan chargeoffs were $3,642,000 in 2002 compared to $2,199,000 in
2001, and totaled $843,000 and $562,000 for the fourth quarters of 2002 and
2001, respectively. Commercial and consumer loans were the majority of net
chargeoffs in 2002, comprising 52% and 18%, respectively. In 2001, commercial
and consumer loans comprised 42% and 41% of total net chargeoffs, respectively.
Net chargeoffs relating to Overdraft Privilege totaled $705,000 in 2002,
representing 19% of the total and nearly half of the total increase from the
prior year. Net chargeoffs in 2002 were also impacted by Peoples charging down a
group of troubled commercial loans in the first half of 2002 to amounts deemed
collectible. In the fourth quarter of 2002, commercial and consumer loans
comprised 44% and 27% of total net chargeoffs, while Overdraft Privilege
represented 23%, or $196,000. In the fourth quarter of 2001, commercial and
consumer loans comprised 37% and 42% of total net chargeoffs, respectively.
"In the first half of 2002, our asset quality was impacted by a few
troubled loan relationships, which resulted in a higher level of nonperforming
assets and chargeoffs compared to last year," stated Conlon. "Based on our most
recent loan review, we do not anticipate these relationships resulting in any
additional losses. We realize future success in the financial services industry
is contingent, in part, on the ability to maintain solid asset quality and
believe the current allowance for loan losses is adequate for the overall
quality, inherit risk and loan volume concentrations in the loan portfolio."
At December 31, 2002, Peoples' effective tax rate was 27.4% on a
year-to-date basis compared to 30.4% in 2001. The decrease in Peoples' effective
tax rate is largely attributable to the adoption of new accounting rules for
goodwill and growth in average balance of tax-advantaged investments, which
accounted for 42% and 41% of the decrease, respectively.
"Overall, we are pleased with our 2002 results," summarized Evans.
"Our earnings momentum remained strong throughout the year and we look forward
to the new opportunities we will have in 2003 to further improve Peoples'
long-term shareholder value."
Peoples Bancorp Inc., a diversified financial products and services
company with $1.4 billion in assets, offers a complete line of banking,
investment, insurance, and trust solutions through Peoples Bank's 45 sales
offices and 30 ATMs in Ohio, West Virginia, and Kentucky. Peoples' common shares
are traded on the NASDAQ national market under the symbol "PEBO" and a member of
the Russell 3000 index of US publicly traded companies. Learn more about Peoples
or enroll in Peoples' award winning Internet banking product, at
www.peoplesbancorp.com.
Conference Call to Discuss Earnings:
- ------------------------------------
Peoples will conduct a facilitated conference call to discuss the 2002
results of operations on January 22, 2003, at 3:00 p.m., local time, with
members of Peoples' executive management participating. The conference call,
consisting of brief opening remarks followed by a question and answer period, is
open to the public; however, management asks that questions be limited to
investment analysts, interested members of the media and shareholders. To
participate in the call, please dial (877) 735-0939 approximately five minutes
before the scheduled start of the conference call. A complete transcript of the
conference call will be placed on peoplesbancorp.com, in the "Investor
Relations" section under "Conference Call Transcripts".
Safe Harbor Statement:
- ----------------------
Except for the historical and present factual information contained in
this press release, the matters discussed in this press release, and other
statements identified by words such as "expects," "believes," "plans," and
similar expressions are forward-looking statements within the meaning of the
"safe harbor" provisions of the Private Securities Litigation Reform Act of
1995. These forward-looking statements are subject to risks and uncertainties
that may cause actual results to differ materially, including, but not limited
to, the interest rate environment, the effect of federal and state banking and
tax regulations, the effect of technological changes, the effect of economic
conditions, the impact of competitive products and pricing, and other risk
factors relating to the banking industry or Peoples as detailed from time to
time in Peoples' reports filed with the SEC. Although management believes that
the expectations in these forward-looking statements are based on reasonable
assumptions within the bounds of management's knowledge of Peoples' business and
operations, it is possible that actual results may differ materially from these
projections. Peoples disclaims any responsibility to update these
forward-looking statements.
PEOPLES BANCORP INC. (Nasdaq: PEBO)
Financial Highlights (Unaudited)
--------------------------------- ---------------------------------
Three Months Ended Year Ended
(in $000's, except share data) December 31, December 31,
2002 2001 2002 2001
--------------------------------- ---------------------------------
PER SHARE DATA (a) Basic earnings per share:
Income before extraordinary gains $ 0.55 $ 0.45 $ 2.31 $ 1.56
Net income $ 0.55 $ 0.45 $ 2.36 $ 1.56
Diluted earnings per share:
Income before extraordinary gains $ 0.54 $ 0.45 $ 2.25 $ 1.54
Net income $ 0.54 $ 0.45 $ 2.30 $ 1.54
Dividends declared per share $ 0.15 $ 0.14 $ 0.59 $ 0.51
Book value per share $ 15.72 $ 12.00 $ 15.72 $ 12.00
Tangible book value per share (b) $ 12.44 $ 9.82 $ 12.44 $ 9.82
Dividend payout as a percentage of net income 26.60% 30.36% 24.91% 33.08%
Actual shares outstanding (net of treasury shares) 9,361,871 7,822,014 9,361,871 7,822,014
Weighted average shares outstanding:
Basic 8,116,691 7,824,590 7,932,485 7,882,890
Diluted 8,344,996 7,944,450 8,150,087 8,003,593
PERFORMANCE RATIOS
Return on average equity 15.25% 14.76% 17.69% 13.60%
Return on average assets 1.32% 1.21% 1.46% 1.06%
Non-interest income leverage ratio (c) 45.43% 43.73% 42.73% 34.53%
Efficiency ratio (d) 54.13% 56.00% 52.95% 56.53%
Net interest margin (fully tax equivalent) 4.05% 4.30% 4.37% 4.11%
Net loan chargeoffs as a percentage of average loans 0.10% 0.07% 0.44% 0.29%
NET CHARGEOFFS
Gross chargeoffs $ 1,005 $ 653 $ 4,328 $ 2,638
Recoveries $ 162 $ 91 $ 686 $ 439
--------------- --------------- --------------- --------------
Net chargeoffs $ 843 $ 562 $ 3,642 $ 2,199
--------------- --------------- --------------- --------------
<FN>
(a)Adjusted for 10% stock dividends issued June 28, 2002 and September 12, 2001.
(b)Excludes balance sheet impact of intangible assets acquired through use of
purchase accounting for acquisitions.
(c)Non-interest income (less securities and asset disposal gains) plus gain on
sale of loans as a percentage of non-interest expense (less intangible
amortization).
(d)Non-interest expense (less intangible amortization) as a percentage of
fully tax equivalent net interest income plus non-interest income and gain
on sale of loans.
</FN>
PEOPLES BANCORP INC. CONSOLIDATED STATEMENTS OF INCOME
------------------------------- -------------------------------
Three Months Ended Year Ended
December 31, December 31,
(in $000's) 2002 2001 2002 2001
------------------------------- -------------------------------
Interest income $ 20,658 $ 20,539 $ 82,968 $ 86,107
Interest expense 8,468 9,295 32,970 42,974
-------------- ------------- -------------- --------------
Net interest income 12,190 11,244 49,998 43,133
Provision for loan losses 1,044 634 4,067 2,659
-------------- ------------- -------------- --------------
Net interest income after provision for loan losses 11,146 10,610 45,931 40,474
Gain on sale of loans 135 - 157 -
Net gain on securities transactions 114 2 216 29
Net (loss) gain on asset disposals (58) 11 (72) 24
Net mark-to-market adjustment on interest rate caps - - - (131)
Non-interest income:
Service charges on deposits 1,977 1,049 6,976 3,608
Fiduciary revenues 597 640 2,479 2,508
Insurance and investment commissions 448 427 1,966 1,504
Electronic banking revenues 483 390 1,729 1,422
Business owned life insurance 386 239 1,471 481
Demutualization income - 877 - 877
Other non-interest income 84 121 314 328
-------------- ------------- -------------- --------------
Total non-interest income 3,975 3,743 14,935 10,728
Non-interest expense:
Salaries and benefits 4,499 4,573 18,100 15,590
Occupancy and equipment 1,061 903 3,915 3,695
Trust preferred 593 645 2,420 2,621
Professional fees 497 240 1,913 996
Data processing and software 340 350 1,208 1,107
Marketing 228 178 1,006 608
Amortization of other intangible assets 215 125 646 501
Amortization of goodwill - 492 - 1,846
Other non-interest expense 1,828 1,670 6,759 6,448
-------------- ------------- -------------- --------------
Total non-interest expense 9,261 9,176 35,967 33,412
-------------- ------------- -------------- --------------
Income before income taxes 6,051 5,190 25,200 17,712
Income taxes 1,551 1,653 6,858 5,377
-------------- ------------- -------------- --------------
Income before extraordinary gains 4,500 3,537 18,342 12,335
Extraordinary gain on early debt extinguishment,
net of tax expense of $221 - - 410 -
-------------- ------------- -------------- --------------
Net income $ 4,500 $ 3,537 $ 18,752 $ 12,335
============== ============= ============== ==============
Fully tax equivalent net interest income $ 12,603 $ 11,542 $ 51,610 $ 44,221
PEOPLES BANCORP INC. SELECTED FINANCIAL INFORMATION
------------------------------- -------------------------------
Three Months Ended Year Ended
December 31, December 31,
(in $000's) 2002 2001 2002 2001
------------------------------- -------------------------------
CONSOLIDATED AVERAGE BALANCES
Average gross loans $ 858,670 $ 765,112 $ 824,733 $ 753,777
Average earning assets 1,243,545 1,074,336 1,180,698 1,076,591
Average intangible assets 30,667 17,323 23,720 17,956
Average total assets 1,360,377 1,169,253 1,288,322 1,162,874
Average non-interest bearing deposits 105,618 90,725 100,740 87,503
Average interest bearing deposits:
Savings 143,022 78,144 116,512 77,543
Interest-bearing demand deposits 279,845 282,153 279,407 275,331
Time deposits 421,035 374,199 393,677 370,704
-------------- ------------- -------------- --------------
Total average interest bearing deposits 843,902 734,496 789,596 723,578
Average stockholders' equity $ 118,021 $ 95,845 $ 106,025 $ 90,689
-------------- ------------- -------------- --------------
PEOPLES BANCORP INC. SELECTED FINANCIAL INFORMATION
----------------- ----------------- -----------------
December 31, September 30, December 31,
2002 2002 2001
----------------- ----------------- -----------------
LOAN PORTFOLIO (in $000's, end of period)
Commercial, financial, and agricultural $ 392,528 $ 386,413 $ 343,800
Real estate, construction 16,231 20,348 14,530
Real estate, mortgage 331,948 341,131 295,944
Consumer 103,635 113,533 111,912
Credit card 6,549 6,202 6,670
--------------------------------------------------------
Total loans $ 850,891 $ 867,627 $ 772,856
ASSET QUALITY
Allowance for loan losses as a percent of total loans 1.54% 1.49% 1.60%
Allowance for loan losses as a percent of
nonperforming loans (a) 175.3% 171.2% 225.0%
Nonperforming loans as a percent of total loans (a) 0.88% 0.87% 0.71%
Nonperforming assets as a percent of total assets (b) 0.55% 0.56% 0.48%
Nonperforming assets as a percent of total loans and
other real estate owned
real estate owned (b) 0.89% 0.88% 0.73%
Nonperforming assets (in $000's, end of period):
Loans 90 days or more past due $ 407 $ 635 $ 686
Renegotiated loans $ 2,439 $ 2,439 $ 425
Nonaccrual loans $ 4,617 $ 4,455 $ 4,380
Other real estate owned $ 148 $ 124 $ 181
----------------- ----------------- -----------------
Total nonperforming assets $ 7,611 $ 7,653 $ 5,672
REGULATORY CAPITAL (in $000's, end of period)
Tier 1 risk-based capital 15.43% 11.55% 12.86%
Total risk-based capital ratio (Tier 1 and Tier 2) 16.79% 12.91% 14.21%
Leverage ratio 10.56% 7.96% 9.18%
Tier 1 capital $ 139,208 $ 104,028 $ 105,065
Total capital (Tier 1 and Tier 2) $ 151,404 $ 116,223 $ 116,114
Total risk-weighted assets $ 901,973 $ 900,363 $ 816,907
SUPPLEMENTAL DATA (in $000's, end of period)
Trust assets under management $ 500,338 $ 485,074 $ 539,487
Employees (full-time equivalent) 462 458 403
Full service offices 39 39 34
Supermarket offices 4 4 4
ATMs 30 29 25
Announced treasury share plans: (c)
Total shares in plan 192,500 192,500 151,250
Shares purchased (d) - - 12,383
Average price (d) $ - $ - $ 16.03
----------------- ----------------- -----------------
<FN>
(a) Nonperforming loans include loans 90 days past due and accruing,
renegotiated loans, and nonaccrual loans.
(b) Nonperforming assets include nonperforming loans, and other real estate
owned.
(c) 2002 data reflects 2002 Stock Repurchase Program of 192,500 shares
(or 2.5% of outstanding shares); 2001 data reflects 2001 Stock Repurchase
Program of 151,250 shares (or 2% of outstanding shares). All share amounts
adjusted for stock dividends. (d) Reflects treasury shares purchased and
average price paid for the three-month period ended on the date indicated.
</FN>
PEOPLES BANCORP INC. CONSOLIDATED BALANCE SHEETS
------------------ ------------------
(in $000's) December 31, December 31,
2002 2001
ASSETS
Cash and cash equivalents $ 55,550 $ 32,838
Available-for-sale investment securities, at estimated fair value
(amortized cost of $402,048 at December 31, 2002, and $329,081 at
December 31, 2001) 412,100 330,364
Loans, net of unearned interest 850,891 772,856
Allowance for loan losses (13,086) (12,357)
------------------ ------------------
Net loans 837,805 760,499
Bank premises and equipment, net of accumulated depreciation 18,058 16,369
Goodwill 25,504 15,388
Other intangible assets 5,234 1,622
Other real estate owned 148 181
Other assets 39,962 36,705
------------------ ------------------
TOTAL ASSETS $ 1,394,361 $ 1,193,966
================== ==================
LIABILITIES
Non-interest bearing deposits $ 115,907 $ 96,533
Interest bearing deposits 839,970 717,835
------------------ ------------------
Total deposits 955,877 814,368
Federal funds purchased, securities sold under repurchase agreements,
and other short term borrowings 48,183 56,052
Long-term borrowings 203,829 192,448
Accrued expenses and other liabilities 10,199 8,188
================== ==================
TOTAL LIABILITIES 1,218,088 1,071,056
Guaranteed preferred beneficial interests in junior subordinated debentures 29,090 29,056
STOCKHOLDERS' EQUITY
Common stock, no par value (12,000,000 shares authorized, 9,421,222 shares
issued at December 31, 2002, and
7,289,266 shares issued at December 31, 2001) 129,173 78,664
Accumulated comprehensive income, net of deferred income taxes 6,446 834
Retained earnings 12,650 17,735
Treasury stock, at cost (59,351 shares at December 31, 2002,
and 178,344 shares at December 31, 2001) (1,086) (3,379)
------------------ ------------------
TOTAL STOCKHOLDERS' EQUITY 147,183 93,854
TOTAL LIABILITIES, BENEFICIAL INTERESTS, AND
------------------ ------------------
STOCKHOLDERS' EQUITY $ 1,394,361 $ 1,193,966
------------------ ------------------
END OF RELEASE