**UNITED STATES SECURITIES AND EXCHANGE COMMISSIONWashington,  D.C.  20549 **

**FORM 10-QSB **

** **

 X        QUARTERLY REPORTUNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

                                    Forthe quarterly period ended September 30, 2003

__        TRANSITION REPORTUNDER SECTION 13 OR 15(D) ON THE EXCHANGE ACT

                                    For the transition period from_______________ to _______________       

**Commission file number      0-5559      **

| **FIRST  FINANCIAL CORPORATION** (Exact name of small business issuer as specified in  its charter) |
|----------------------------------------------------------------------------------------------------------|
|                                                                                                          |
|                                                                                                          |
| Texas                                                                                                    |  | 74-1502313 |
| (State  or other jurisdiction of                                                                         |  | (I.R.S.  Employer Identification |
| incorporation  or organization)                                                                          |  | No.) |
|                                                   |
|                                                                                                          |
| 800    Washington Avenue,  Waco,   Texas                                                                 |  | 76701 |
| (Address of principal  executive offices)                                                                |  | (Zip  Code) |
|                                                                                                          |
|                                                                                                          |
|                                                                                                          |
| Issuer's  telephone number       (254) 757-2424                            |

Number of shares of theIssuer's Common stock outstanding on October 31, 2003 was 173,528.

Transitional SmallBusiness Disclosure Format (check one)                    Yes ____         No_X__

            

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FORM 10-QSB

FIRST FINANCIALCORPORATIONSEPTEMBER 30, 2003

INDEX

| Part I Financial  Information                                                                                                                                                                                                                                                                  | Page No. |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |          |
|             Item 1. Financial  Statements                                                                                                                                                                                                                                                                                                                                                                                                                                                         |          |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |          |
|                                      Consolidated  Balance Sheet as of                                                                                                                                                                                                                                                                                                                        | 1        |
|                                     September   30, 2003                                                                                                                                                                                                                                                                                                                  |          |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |          |
|                                      Consolidated  Statements of Income                                                                                                                                                                                                                                                                                                                       | 2        |
|                                     for  the Nine-Months ended                                                                                                                                                                                                                                                                                                                                |          |
|                                     September   30, 2003 and 2002                                                                                                                                                                                                                                                                                                                             |          |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |          |
|                                      Consolidated  Statements of Cash                                                                                                                                                                                                                                                                                                                         |          |
|                                     Flow  for the Nine-Months                                                                                                                                                                                                                                                                                                                                 |          |
|                                     ended  September 30, 2003 and 2002                                                                                                                                                                                                                                                                                                                        | 3        |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |          |
|                                      Notes  to Consolidated Financial                                                                                                                                                                                                                                                                                                                         |          |
|                                     Statements                                                                                                                                                                                                                                                                                                                                                | 4-5      |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |          |
|             Item 2.  Management's  Discussion and Analysis                                                                                                                                                                                                                                                                                                                                                                                                                                                            |          |
|                                     of  Results of Operations and Financial                                                                                                                                                                                                                                                                                                                   | 5-8      |
|                                     Condition                                                         |          |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |          |
|             Item 3.  Controls and Procedures                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | 8        |
|                                                                                                                                                                                                                                                                       |          |
| Part II Other  Information                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |          |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |          |
|             Item 1. Legal  Proceedings                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | 8        |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |          |
|             Item 5.  Other Information                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | 8        |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |          |
|             Item 6. Exhibits  and Reports on Form                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |          |
|                                     8-K                                                                                                                                                                                                                                                                                                                                                       | 8        |

 

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| First Financial Corporation                                                     |
|---------------------------------------------------------------------------------|
| Consolidated Balance Sheet                                                      |
| September 30, 2003                                                              |
| (Unaudited)                                                                     |
|                                                                                 |  |  |  |  |
|                                                                                 |  |  |  |  |
|                                                                                 | Assets |  |  |  |
|                                                                                 | ------ |  |  |  |
| Cash and cash equivalents                                                       |  |  |  $    3,478,077  |
| Restricted cash                                                                 |  |  |          679,437  |
| Accounts receivable, net  of allowance for doubtful                             |  |  |                    -   |
|  accounts of $99,289                                                       |  |  |  |        1,023,899  |
| Marketable investment  securities                                               |  |  |  |          111,944  |
| Restricted marketable  investment securities                                    |  |  |          600,789  |
| Real estate held for  investment,at cost                                        |  |  |          549,336  |
| Mortgage loans, net of  allowance for loan                                      |  |  |  |
|  losses of $724,320                                                        |  |  |        9,619,081  |
| Property and equipment                                                          |  |  |          635,982  |
| Other assets                                                                    |  |  |        1,122,534  |
|                                                                                 |     Total Assets |  |  |  $  17,821,079  |
|                                                                                 |  |  |  |  ========== |
|    Liabilities and  Stockholders' Equity                              |  |  |  |
|    --------------------------------------                                  |  |  |  |  |
| Notes on line of credit                                                         |  |  |  |        9,395,662  |
| Note payable                                                                    |  |  |  |            50,000  |
| Accounts payable                                                                |  |  |  |          908,359  |
| Estimated reserve for  losses under servicing                                   |  |  |  |  |
|  agreements                                                                |  |  |  |          234,595  |
| Other liabilities                                                               |  |  |        1,249,887  |
|                                                                                 |     Total Liabilities |  |  |      11,838,503  |
|                                                                                 |  |  |  |  |
| Stockholders' equity:                                                           |  |  |  |
|  Common stock - no par  value; authorized                                  |  |  |  |
|     500,000 shares;issued  183,750 shares,                       |  |  |  |
|     of which 10,222 shares  are held in                          |  |  |  |
|     treasury shares                                              |  |  |              1,000  |
|  Additional paid-in  capital                                               |  |  |          518,702  |
|  Retained earnings                                                         |  |  |        5,472,650  |
|  Accumulated other  comprehensive income:                                  |  |  |   |
|     Unrealized gain (loss)  on marketable securities, net of tax |  |  |            25,533  |
|                                                                                 |  |  |        6,017,885  |
|  Less:Treasury stock - at  cost                                            |  |  |           (35,309) |
|                                                                                 |     Total Stockholders'  Equity |  |       5,982,576  |
|                                                                                 |     Total Liabilities and  Stockholders' Equity |  $  17,821,079  |
|                                                                                 |  |  |  |  ========== |
|                                                                                 |  |  |  |  |
| See accompanying notes to  consolidated financial statements.                   |
|                                                                                 |  |  |  |  |  |

 

1

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| First Financial Corporation |  
Consolidated Statements of Income

 
Three months and Nine months ended September 30, 2003  and 2002

 
(Unaudited)

 
 
 
      Three months ended

         Nine months ended

            September 30,

            September 30,

 --------------------------------

   --------------------------------

2003

2002

2003

2002

   ----------

   ----------

   ----------

   ----------

Revenues:

 Loan administration

 $  3,172,964 

 $2,418,155 

 $10,104,240 

 $   5,304,859 

 Interest income

        610,856 

      713,206 

    2,059,353 

     1,590,831 

 Other income

        477,445 

      955,734 

    1,154,134 

     1,562,087 

     Total Revenues

     4,261,265 

   4,087,095 

   13,317,727 

     8,457,777 

Expenses:

 Salaries and related  expenses

     1,723,279 

   1,673,354 

    5,406,924 

     4,392,897 

 Interest expense

        563,459 

      498,946 

    1,752,387 

     1,027,707 

 Other operating expenses

     1,963,694 

   1,137,118 

    5,027,200 

     3,032,162 

     Total Expenses

     4,250,432 

   3,309,418 

   12,186,511 

     8,452,766 

     Income before income  taxes,

      minority interest,  equity in earnings 

      (loss) of affiliates 

         10,833 

      777,677 

    1,131,216 

            5,011 

Federal income taxes

                 -   

               -   

                 -   

                18 

     Income before  minority interest

         10,833 

      777,677 

    1,131,216 

            4,993 

Minority interest in net  loss (income)

                 -   

      (49,942)

                 -   

        370,049 

     Income before equity  in earnings (loss) of

      affiliates 

         10,833 

      727,735 

    1,131,216 

        375,042 

Equity in earnings (loss)  of affiliates

                 -   

               -   

                 -   

             (206)

     Net income (loss)

         10,833 

      727,735 

    1,131,216 

        374,836 

Other comprehensive  income:

 Unrealized holding gains  (losses)

        (14,601)

       53,007 

            (264)

          16,315 

     Comprehensive income  (loss) 

 $       (3,768)

 $   780,742 

 $  1,130,952 

 $     391,151 

 ======= 

 ======= 

 ======= 

 ======= 

Income Per Common Share

($0.02)

$4.50 

$6.52 

$2.25 

 ======= 

 ======= 

======= 

 ======= 

See accompanying notes to  consolidated financial statements.

 

2

First Financial Corporation

Consolidated Statement of Cash Flows

            (Unaudited)

Nine Months Ended September 30,

----------------------------

2003          

2002         

-----------       

-----------      

Cash flows from operating  activities:

   Net income (loss)

$       1,131,215 

$             374,837 

   Adjustments to  reconcile net income(loss) to

    net cash used by  operating activities:

   Depreciation

236,769 

39,292 

   Provision for loan  losses

1,062,354 

-   

   Loss on loans charged  off to loan loss reserve

 (440,223)

   Equity in (income) loss  of affiliates

-   

206 

   Realized (gains) losses  on marketable investment securities

 (12,318)

45,569 

   Net (increase) decrease  in accounts receivable

241,316 

102,087 

   Net (increase) decrease  in other assets

785,449 

 (593,619)

   Net increase (decrease)  in accounts payable

 (289,362)

588,711 

   Net increase (decrease)  in other liabilities

 (199,756)

774,992 

   Increase in minority  interest

-   

 (1,571,344)

   (Increase) decrease in  restricted cash used 

     in operating  activities - net

      26,237 

344,044 

   Mortgage loans funded

 (606,676,176)

 (472,792,185)

   Mortgage loans sold

638,385,932 

465,879,155 

   Increase (decrease) in  mortgage loans participations sold

849,923 

9,998,521 

   Other

              (51,494)

              (21,097)

        Net cash provided  (used) for operating activities

        35,049,866 

           3,169,169 

Cash flows from investing  activities:

   Proceeds from sale of  marketable investment securities

41,332 

207,415 

   Purchases of marketable  investment securities

 (81,581)

 (19,521)

   Purchases of restricted  marketable investment securities

-   

 (593,193)

   Unrealized holding gain  (loss)

 (264)

16,314 

   Proceeds from sale of  property and equipment

-   

767,637 

   Purchase of property  and equipment

 (208,435)

 (368,020)

   Principal collections  on mortgage loans

32,064 

38,285 

   (Increase) decrease in  deferred gain on sale of property & equipment

131,339 

 (496,168)

   (Advances to)  repayments from affiliates

                         -   

              415,514 

        Net cash provided  (used) for investing activities

               (85,545)

              (31,737)

Cash flows from financing  activities:

   Net change in  short-term borrowings

 (32,872,767)

 (3,012,552)

   (Increase) decrease in  notes payable

                        -   

             (225,000)

        Net cash used for  financing activities

       (32,872,767)

          (3,237,552)

Net increase (decrease) in  cash and cash equivalents

2,091,554 

 (100,120)

Cash and cash equivalents  at beginning of year

          1,386,523 

          1,060,879 

Cash and cash equivalents  at end of period

$        3,478,077 

$           960,759 

 =========

 =========

Supplemental Disclosure of  Cash Flow Information

   Interest Paid

$        1,825,434 

$           978,697 

 =========

 =========

See accompanying notes to  consolidated financial statements.

 

3

FIRST FINANCIALCORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATEDFINANCIAL STATEMENTS(Unaudited)

PART I - FINANCIAL INFORMATION

1 - Basis of Presentation

The financial informationincluded herein for First Financial Corporation, and all of its wholly ownedsubsidiaries (the "Company") is unaudited; however, such unauditedinformation reflects all adjustments which are, in management's opinion,necessary for a fair presentation of the financial position, results ofoperations and statement of cash flows for the interim periods. In preparingthese financial statements, management is required to make estimates andassumptions that affect the reported amounts of assets and liabilities as ofthe date of the balance sheet and revenue and expense for the period. Actualresults could differ significantly from those estimates. 

As more fully discussed inthe Annual Report Form 10-KSB for the year ended December 31, 2002,effective July 31, 2002, the Company acquired allof the outstanding common stock of First Preference Mortgage Corp. ("FPMC") sothat the Company directly owns 100% of the capital stock of FPMC. FPMC was athird-tier subsidiary of Key Group, Ltd. ("Key Group"), a Texas LimitedPartnership, which the Company owned an approximately 53% interest. TheCompany's consolidated statements of income for the nine months ended September 30, 2002, include the revenue and expense of Key Group for theperiod January 1, 2002 to July 31, 2002 and the revenue and expense of FPMC for the period August 1, 2002 to September 30, 2002.The minority interest in net loss for the nine months ended September 30, 2002 represents the ownership of other entities in the netloss of Key Group.

The results of operationsand changes in cash flow for the nine-month period ended September 30, 2003 are not necessarily indicative of the results to beexpected for the full year or any future period.

Certain reclassificationswere made to prior periods to ensure comparability with the current period.

2 - Earnings Per Share

Earnings per common sharewere computed by dividing net income by the weighted average number of sharesoutstanding during the period. 

3 - Income Taxes

Income taxes are providedfor the tax effects of transactions reported in the financial statements andconsist of taxes currently due plus deferred taxes related primarily todifferences between the basis of the loan loss reserve for financial and incometax reporting.  The deferred tax assets and liabilities represent the futuretax return consequences of those differences, which will either be taxable ordeductible when the assets and liabilities are recovered or settled.  Deferredtaxes also are recognized for operating losses that are available to offsetfuture taxable income and tax credits that are available to offset futurefederal income taxes.  The Company has approximately $6,000,000 in availablenet operating loss carryforward benefits for financial statement purposes tooffset future income, if any. A valuation allowance has been provided for alltax benefits.

 

4

4 - Contingencies

Substantially all of theconventional pools of manufactured home loans serviced by the Company,approximately $307,000 at September 30, 2003,were sold to investors with recourse.  The recourse provisions typically requirethe Company to repurchase delinquent loans at the unpaid balances plus accruedinterest, or replace delinquent loans with another loan which is current. Further, several of the agreements require the Company to establish andmaintain cash reserve accounts.  Deposits are periodically made to the accountsequal to a specified percent of the outstanding loans. The accounts may be usedto cover deficiencies from foreclosure and liquidation of delinquent pooledmortgage loans.  Such cash reserve accounts totaled $4,495 and are included inrestricted cash at September 30, 2003.

Item 2. Management'sDiscussion and Analysis of Results of Operations and Financial Condition 

Results of Operations

The Company had net incomeof $1,131,216 for the nine months ended September 30, 2003 compared to net income of $374,836 for the same periodin 2002.  Loan administration revenues were $10,104,240 for the first ninemonths for 2003 compared to $5,304,859 for the same period of 2002.  Theincrease in loan administration revenues is the result of increased loanorigination fees from the Company's residential mortgage loan operations.During the nine months ended September 30, 2003,FPMC funded approximately $606.0 million in new residential mortgage loanscompared to approximately $472.8 million during the same period in 2002. Inaddition, the revenues from the sale of the mortgage loans to governmental andprivate investors increased by approximately $3.7 million for the nine monthsended September 30, 2003 compared to the sameperiod in 2002. This increase is due to a significant improvement in the netmargins realized on the sale of these mortgage loans and a $170.3 millionincrease in the amount of mortgage loans sold during the period. The netmargins realized during the first quarter of 2002 were decreased due to theunstable market conditions that prevailed during the period.

For the seven months endedJuly 31, 2002, Key Group had a net loss of ($786,352). The Company'sshare of the net loss of Key Group was ($416,303) for the seven months ended July 31, 2002. The minority interest in the net loss of Key Groupamounted to $370,049 for the seven months ended July 31, 2002.The minority interest represents the ownership of other entities in the KeyGroup net loss. As a result of transactions previously discussed that tookplace in July 2002, Key Group was dissolved and FPMC is now 100% directly ownedby the Company.

 

5

For the two months ended September 30, 2002, FPMC had net income of $744,522. Approximately$636,000 of this net income was attributable to other income from therecoupment of an asset valuation reserve that was required to be recorded byFPMC in connection with its acquisition by the Company as discussed above. 

Interest income for thenine months ended September 30, 2003 amounted to $2,059,353compared to $1,590,831 for the same period in 2002.  This increase is primarilydue to the approximate $133.2 million increase in loan originations from 2003to 2002, as discussed above. FPMC earns interest from the date the mortgageloan is closed until the date the mortgage loan is sold to investors.

Other income for the ninemonths ended September 30, 2003 amounted to $1,154,134compared to $1,562,087 for the same period in 2002. As discussed above, FPMCrealized approximately $636,000 in other income during the two months ended September 30, 2002. For the nine months ended September 30, 2003,fees earned under fronting and reinsurance agreements increased byapproximately $171,000 compared to the same period in 2002.

Salaries and relatedexpenses increased to $5,406,924 for the nine months ended September 30, 2003, compared to $4,392,897 for the nine months ended September 30, 2002. This increase is primarily due to the overall increasein the volume of new residential mortgage loans originated during the ninemonths ended September 30, 2003 compared to the sameperiod in 2002 as previously discussed.

For the nine months ended September 30, 2003, interest expense amounted to $1,752,387 compared to$1,027,707 for the same period in 2002.  The significant increase in interestexpense for the nine months ended September 30, 2003 is primarily the result of increased utilization of thewarehouse line of credit and loan participation agreements due to thepreviously discussed increase in loan origination volume. During this period,the weighted average interest rate on the Company's financing of its mortgagelending activities increased to approximately 4.61% compared to approximately4.40% for the same period in 2002.

Other operating expensesfor the nine months ended September 30, 2003were $5,027,200 compared to $3,032,162 for the same period in 2002. Thisincrease is primarily due to the overall increase in the volume of newresidential mortgage loans originated during the nine months ended September 30, 2003 compared to the same period in 2002 as previouslydiscussed.

The consolidatedstatements of income for the nine months ended September 30, 2002reflect equity in the net loss of affiliates of ($206). As more fully discussedin the Annual Report Form 10-KSB for the year ended December 31, 2002,the Company exchanged its interest in affiliates in acquiring all of theoutstanding common stock of FPMC effective July 31, 2002.  

Other comprehensive incomeconsists of unrealized holding gains (losses) on marketable investmentsecurities net of income taxes. For the nine months ended September 30, 2003, unrealized holding losses amounted to ($264) comparedto unrealized holding gains of $16,315 for the nine months ended September 30, 2002.

 

6

Financial Condition

On consolidated basis,cash and cash equivalents (including restricted cash) were $4,157,514 at September 30, 2003.  Included therein is cash and cash equivalents of ApexLloyds Insurance Company of $940,174 and First Apex Re of $442,803.  The cashflow of Apex Lloyds Insurance Company and First Apex Re are only available tothe Company as allowed by state insurance regulations.

As more fully discussed inthe Annual Report Form 10-KSB for the year ended December 31, 2002,FPMC has a mortgage warehouse line of credit with a financial institutiontotaling $45,000,000 which expired April 30, 2003. On April 9, 2003,the maturity date was extended to May 31, 2003. On April 30, 2003,the maturity date was extended to July 31, 2003 and the amount of the line of credit increased to$50,000,000. On July 31, 2003, the maturity date wasextended to August 31, 2003. On August 29, 2003, the maturity date was extended to June 30, 2004. This agreement includes certain financial covenantsincluding requirements to maintain FPMC stockholders' equity above $3,600,000and adjusted-tangible-net worth above $3,500,000. Also, FPMC's totalliabilities to adjusted tangible net worth may never exceed 15 to 1. On June 9, 2003, FPMC entered into a loan participation agreement inthe amount of $10,000,000 with this financial institution. Under thisagreement, the financial institution has the option to purchase an undividedinterest in the residential mortgage loans originated by FPMC. When the subjectmortgage is sold in the secondary market, the financial institution recoups itsinvestment plus a specified yield on its investment. At September 30, 2003, no participations were outstanding under thisagreement. 

In addition, FPMC has aloan participation agreement with another financial institution, which is arelated party by common ownership, amounting to $22,500,000. Under thisagreement, the financial institution has the option to purchase an undividedinterest in the residential mortgage loans originated by FPMC. When the subjectmortgage loan is sold in the secondary market, the financial institutionrecoups its investment plus a specified yield on its investment. At September 30, 2003, $14,364,611 in participations were outstanding underthis agreement.

Item 3. Controls and Procedures

Within the 90 days prior to the filing of this report,the Company evaluated the effectiveness of the design and operation of itsdisclosure controls and procedures. The evaluation was carried out under thesupervision and with the participation of the Company's management, includingthe Company's Chief Executive Officer and Chief Financial Officer. Based on andas of the date of the evaluation, the Chief Executive Officer and the ChiefFinancial Officer concluded that the Company's disclosure controls andprocedures are effective in timely alerting them to material informationrelating to the Company, including it consolidated subsidiaries, required to beincluded in reports the Company files with or submits to the Securities andExchange Commission under the Securities Exchange Act of 1934. There have beenno significant changes in the Company's internal controls or in other factorsthat could significantly affect the Company's internal controls subsequent tothe date of the evaluation.

7

                                    PART II -OTHER INFORMATION

Item 1. Legal Proceedings

The Company is involved inroutine litigation incidental to its business, both as a plaintiff and adefendant. Management of the Company, after consulting with legal counsel,feels that liability resulting from the litigation, if any, will no have amaterial effect on this financial position of the Company.

Item 5. Other Information

This report on Form 10-Q is accompanied by a statement ofthe Chief Executive Officer and the Chief Financial Officer of the registrantmaking certain certifications as to the contents hereof, as required by Section906 of the Sarbanes-Oxley Act of 2002.

Item 6. Exhibits andReports on Form 8-K

No Form 8-K was filedduring the quarter ended September 30, 2003.

 

8

SIGNATURES

Pursuant to therequirements of the Securities and Exchange Act of 1934, the registrant hasduly caused this report to be signed on its behalf by the undersigned thereuntoduly authorized.

First FinancialCorporation____________________________________________________________________________
      Date               November 12, 2003       /s/  David W. Mann
 

David W. MannPresidentDuly Authorized Officer and  Principal Financial Officer
        Date              November 12, 2003      /s/ Robert L. Harris
 

Robert L. HarrisVice President andPrincipal Accounting Officer

(Remainder of pagepurposely left blank.)

 

 

 

9

Annual and Quarterly CertificationsPursuant to Section 302 of theSarbanes-Oxley Act of 2002 

I, David W. Mann, certify that:

1.         I have reviewed this quarterly report on Form 10-QSB ofFirst Financial Corporation;

2.         Based on my knowledge, this quarterlyreport does not contain any untrue statement of a material fact or omit tostate a material fact necessary to make the statements made, in light of thecircumstances under which such statements were made, not misleading withrespect to the period covered by this quarterly report; 

3.         Based on my knowledge, the financialstatements, and other financial information included in this quarterly report,fairly present in all material respects the financial condition, results ofoperations and cash flows of the registrant as of, and for, the periodspresented in this quarterly report; 

4.         The registrant's other certifyingofficers and I are responsible for establishing and maintaining disclosurecontrols and procedures (as defined in Exchange Act Rules 13a-14 and 15d-14)for the registrant and we have:

a)         designed such disclosurecontrols and procedures to ensure that material information relating to theregistrant, including its consolidated subsidiaries, is made known to us byothers within those entities, particularly during the period in which thisquarterly report is being prepared;

b)        evaluated the effectivenessof the registrant's disclosure controls and procedures as of a date within 90 daysprior to the filing date of this quarterly report (the "Evaluation Date"); and

c)        presented in thisquarterly report our conclusions about the effectiveness of the disclosurecontrols and procedures based on our evaluation as of the Evaluation Date;

5.         The registrant's other certifyingofficers and I have disclosed, based on our most recent evaluation, to theregistrant's auditors and the audit committee of registrant's board ofdirectors (or persons performing the equivalent function):

a)        all significantdeficiencies in the design or operation of internal controls which couldadversely affect the registrant's ability to record, process, summarize andreport financial data and have identified for the registrant's auditors anymaterial weaknesses in internal controls; and

b)        any fraud, whether or notmaterial, that involves management or other employees who have a significantrole in the registrant's internal controls; and

6.        The registrant's other certifyingofficers and I have indicated in this quarterly report whether or not therewere significant changes in internal controls or in other factors that couldsignificantly affect internal controls subsequent to the date of our mostrecent evaluation, including any corrective actions with regard to significantdeficiencies and material weaknesses.

Date:November 12, 2003 

 

/s/David W. MannDavidW. MannChiefExecutive Officer and Chief Financial Officer

 

 

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