<PAGE> 1
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
[ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 1996
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from _____________ to ____________
Commission File Number 0-27522
PITTSBURGH HOME FINANCIAL CORP.
- --------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
Pennsylvania 25-1772349
- --------------------------------------------- ----------------------
(State or other jurisdiction of incorporation (I.R.S. Employer
or organization) Identification Number)
438 Wood Street
Pittsburgh, Pennsylvania 15222
- -------------------------------------- ----------
(Address of principal executive office) (Zip Code)
(412) 281-0780
----------------------------------------------------
(Registrant's telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. Yes X No
--- ---
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date: As of August 9, 1996, there
were issued and outstanding 2,182,125 shares of the Registrant's Common Stock,
par value $.01 per share.
<PAGE> 2
PITTSBURGH HOME FINANCIAL CORP.
TABLE OF CONTENTS
<TABLE>
<CAPTION>
PAGE
----
<S> <C>
PART I. FINANCIAL INFORMATION
- ------- ---------------------
Item 1. Financial Statements
Consolidated Statement of Financial Condition (as of June 30, 1996
(unaudited) and September 30, 1995) 1
Consolidated Statements of Income for the three
and nine months ended June 30, 1996 and 1995 (unaudited) 2
Consolidated Statement of Changes in Shareholders' Equity
for the nine months ended June 30, 1996 (unaudited) 3
Consolidated Statements of Cash Flows for the
nine months ended June 30, 1996 and 1995 (unaudited) 4
Notes to Unaudited Consolidated Financial Statements 5
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations 8
PART II. OTHER INFORMATION
- -------- -----------------
Item 1. Legal Proceedings 12
Item 2. Changes in Securities 12
Item 3. Defaults Upon Senior Securities 12
Item 4. Submission of Matters to a Vote of Security-Holders 12
Item 5. Other Information 12
Item 6. Exhibits and Reports on Form 8-K 12
SIGNATURES 13
</TABLE>
<PAGE> 3
PITTSBURGH HOME FINANCIAL CORP. AND SUBSIDIARY
CONSOLIDATED STATEMENT OF FINANCIAL CONDITION
<TABLE>
<CAPTION>
June 30, September 30,
1996 1995
(Unaudited)
------------ --------------
<S> <C> <C>
ASSETS
Cash $ 765,855 $ 1,417,548
Interest-bearing deposits 2,152,303 2,127,055
------------ ------------
2,918,158 3,544,603
Investments and mortgage-backed securities; available for sale 50,409,821 --
Investments and mortgage-backed securities; held to maturity
(fair value - $46,280,873) -- 46,215,620
Loans receivable, net 124,934,406 102,937,733
Accrued interest receivable 1,297,008 1,071,033
Premises and equipment, net 1,935,538 1,919,162
Federal Home Loan Bank - at cost 1,750,000 1,450,000
Deferred income taxes 345,000 178,763
Real estate owned 135,473 --
Other assets 276,779 252,757
------------ ------------
Total assets $184,002,183 $157,569,671
============ ============
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits $114,881,120 $115,497,198
Advances from Federal Home Loan Bank 34,000,000 29,000,000
Advances by borrowers for taxes and insurance 3,546,129 1,687,301
Accrued income taxes payable 332,276 18,555
Other liabilities 836,398 756,781
------------ ------------
Total liabilities 153,595,923 146,959,835
SHAREHOLDERS' EQUITY
Preferred stock, $.01 par value, 5,000,000 shares authorized,
none issued -- --
Common stock, $.01 par value, 10,000,000 shares authorized
(2,182,125 shares issued and outstanding) 21,821 --
Additional paid-in capital 20,959,429 --
Retained earnings (substantially restricted) 11,440,615 10,609,836
Unearned shares of employee stock ownership plan (1,895,605) --
Unrealized loss on securities available for sale (120,000) --
------------ ------------
Total shareholders' equity 30,406,260 10,609,836
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $184,002,183 $157,569,671
============ ============
</TABLE>
See accompanying notes to unaudited consolidated financial statements.
<PAGE> 4
PITTSBURGH HOME FINANCIAL CORP. AND SUBSIDIARY
CONSOLIDATED STATEMENT OF INCOME
<TABLE>
<CAPTION>
Three months ended Nine months ended
June 30, June 30,
(Unaudited) (Unaudited)
----------------------- -----------------------
1996 1995 1996 1995
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Interest income:
Loans receivable $2,389,944 $1,793,373 $6,924,588 $4,771,635
Mortgage-backed securities 422,156 471,681 1,286,486 1,337,238
Investment securities
Taxable 318,046 295,759 708,836 861,169
Exempt from federal income taxes 46,736 -- 113,958
Interest-bearing deposits 78,001 43,928 297,529 214,454
---------- ---------- ---------- ----------
Total interest income 3,254,883 2,604,741 9,331,397 7,184,496
Interest expense:
Deposits 1,269,206 1,292,261 3,939,763 3,451,663
Interest on advances and other borrowings 511,554 290,532 1,589,671 660,688
---------- ---------- ---------- ----------
Total interest expense 1,780,760 1,582,793 5,529,434 4,112,351
---------- ---------- ---------- ----------
Net interest income before provision for loan losses 1,474,123 1,021,948 3,801,963 3,072,145
Provision for losses on loans 90,000 29,000 210,000 77,000
---------- ---------- ---------- ----------
Net interest income after provision for losses on loans 1,384,123 992,948 3,591,963 2,995,145
Noninterest income:
Service charges and other fees 19,654 29,568 70,663 85,461
Other income 70,846 51,091 199,784 153,805
---------- ---------- ---------- ----------
Total noninterest income 90,500 80,659 270,447 239,266
Noninterest expenses:
Salaries and employee benefits 499,739 380,530 1,388,863 1,106,846
Net occupancy expense 112,694 97,112 361,073 313,103
Federal insurance premium 66,810 63,654 200,324 192,710
Advertising 30,342 28,348 113,453 129,415
Data processing costs 40,487 31,856 121,334 99,183
Other operating expense 158,206 104,091 372,009 336,252
---------- ---------- ---------- ----------
Total noninterest expense 908,278 705,591 2,557,056 2,177,509
---------- ---------- ---------- ----------
Income before income taxes 566,345 368,016 1,305,354 1,056,902
Income taxes 197,175 138,000 474,575 394,000
---------- ---------- ---------- ----------
Net income $ 369,170 $ 230,016 $ 830,779 $ 662,902
========== ========== ========== ==========
Earnings per share $ 0.18 N/A N/A N/A
========== ========== ========== ==========
</TABLE>
See accompanying notes to unaudited consolidated financial statements.
<PAGE> 5
PITTSBURGH HOME FINANCIAL CORP. AND SUBSIDIARY
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
NINE MONTHS ENDED JUNE 30, 1996
<TABLE>
<CAPTION>
Unrealized loss
Additional Unearned shares of on assets Total
Common Paid In Employee Stock Retained available for Shareholders'
Stock Capital Ownership Plan earnings sale Equity
----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Balance as of September 30, 1995 $ - $ - $ - $10,609,836 $ - $10,609,836
Issuance of stock April 1, 1996 21,821 20,959,429 - - - 20,981,250
Purchase of Employee Stock Ownerhip
Plan (ESOP) shares - - (1,928,082) - - (1,928,082)
Amortization of Employee Stock Ownership
Plan - - 32,477 - - 32,477
Change in allowance for unrealized
loss on assets available for sale - - - - (120,000) (120,000)
Net income for period - - - 830,779 - 830,779
---------------------------------------------------------------------------------------
Balance as of June 30, 1996 $21,821 $20,959,429 $(1,895,605) $11,440,615 $(120,000) $30,406,260
---------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to unaudited financial statements.
<PAGE> 6
PITTSBURGH HOME FINANCIAL CORP. AND SUBSIDIARY
CONSOLIDATED STATEMENT OF CASH FLOWS
<TABLE>
<CAPTION>
For the nine months ended June 30,
1996 1995
(Unaudited)
<S> <C> <C>
Net income $ 830,779 $ 662,902
Adjustments to reconcile net income to net cash provided by
operating activities:
Depreciation 115,678 110,130
Loss on sale of securities and other assets, net -
Amortization and accretion of premiums and discounts on
assets and deferred loan fees (15,969) 2,256
Provision for loan losses 210,000 77,000
Deferred tax benefit (104,237) (91,524)
Other, net 81,339 299,164
------------ ------------
Net cash provided by operating activities 1,117,590 1,059,928
CASH FLOWS FROM INVESTING ACTIVITIES
Loan orginations (46,749,137) (43,604,088)
Loan and Mortgage-backed securities principal repayments 28,164,601 19,851,757
Proceeds from loan sales 1,675,300 1,863,850
Purchases of:
Investment securities (17,497,384) (3,905,000)
Mortgage-backed securities (2,531,714) (6,342,241)
Sales and maturities of:
Investment securities 10,071,429 3,614,500
Mortgage-backed securities - -
Purchases of premises and equipment (273,219) (40,191)
Disposal of premises and equipment 2,025 -
Other 65,669 (124,821)
------------ ------------
Net cash (used) provided by investing activities 27,072,430) (28,686,234)
CASH FLOWS FROM FINANCING ACTIVITIES
Net (decrease) increase in checking, passbook, and money market
deposit accounts (1,205,252) (12,515,188)
Net increase (decrease) in certificates of deposit 589,174 16,689,081
Increase in advances on escrow 1,858,828 1,742,700
Increase in advances from the Federal Home Loan Bank 5,000,000 10,500,000
Proceeds from issuance of stock 19,085,645 -
------------ ------------
Net cash provided by financing activities 25,328,395 16,416,593
Net decrease in cash and cash equivalents (626,445) (11,209,713)
Cash and cash equivalents at beginning of year 3,544,603 13,347,475
------------ ------------
Cash and cash equivalents at end of year $ 2,918,158 $ 2,137,762
============ ============
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION Cash paid during the year for:
Interest (includes interest credited on deposits of $3,795,198 and $2,578,041
in 1996 and 1995 respectively) $ 4,339,265 $ 3,238,729
============ ============
Income taxes paid $ 211,266 $ 479,250
============ ============
SUPPLEMENTAL SCHEDULE OF NONCASH INVESTING AND FINANCING ACTIVITIES
Unrealized loss on investment securities 198,000 N/A
Unrealized loss on mortgage-backed securities (16,000) N/A
Deferred income taxes (62,000) N/A
------------ ------------
Net unrealized loss on investment and mortgage-backed securities $ 120,000 N/A
============ ============
</TABLE>
See accompanying notes to unaudited consolidated financial statements.
<PAGE> 7
PITTSBURGH HOME FINANCIAL CORP.
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
Note 1 - Basis of Presentation
---------------------
The audited and unaudited consolidated financial statements contained herein
for the period prior to April 1, 1996 are those of Pittsburgh Home Savings
Bank ("Bank"), as a predecessor entity to Pittsburgh Home Financial Corp.
("Company"). The accompanying consolidated financial statements were
prepared in accordance with instructions to Form 10-Q, and therefore, do not
include information or footnotes necessary for a complete presentation of
financial position, results of operations, and cash flows in conformity with
generally accepted accounting principles. However, all normal, recurring
adjustments which, in the opinion of management, are necessary for a fair
presentation of the financial statements, have been included. These
financial statements should be read in conjunction with the audited financial
statements and the notes thereto for the period ended September 30, 1995.
The results for the three and nine month periods ended June 30, 1996 are not
necessarily indicative of the results that may be expected for the year ended
September 30, 1996.
Note 2 - Business
--------
The Company's subsidiary, Pittsburgh Home Savings Bank, is a state chartered
stock savings bank primarily engaged in attracting retail deposits from the
general public and using such deposits to originate loans (primarily
single-family residential loans.) The Bank conducts business from six
offices in Allegheny and Butler counties of western Pennsylvania and
primarily lends in this geographic area. The Bank is subject to competition
from other financial institutions and other companies which provide financial
services. The Bank is subject to the regulations of certain federal and
state agencies and undergoes periodic examinations by those regulatory
authorities.
Note 3 - Principles of consolidation
---------------------------
The consolidated financial statements include the accounts of Pittsburgh Home
Financial Corp. and its wholly owned subsidiary, Pittsburgh Home Savings
Bank. All significant intercompany balances and transactions have been
eliminated in consolidation.
Note 4 - Conversion and reorganization
-----------------------------
The Company is a Pennsylvania corporation which is the holding company for
the Bank. The Company was organized by the Bank for the purpose of acquiring
all of the capital
<PAGE> 8
stock of the Bank in connection with its conversion from a mutual stock
organization to the stock holding company form which was completed on April
1, 1996 (the "Conversion").
In the Conversion, 2,182,125 shares of common stock were sold at a
subscription price of $10.00 per share, resulting in net proceeds of
approximately $21.0 million. In exchange for 50% of the net conversion
proceeds ($10.5 million), the Company acquired 100% of the stock of the Bank
and retained the remaining $10.5 million at the holding company level.
Note 5 - Earnings per share
------------------
Earnings for the three months ended June 30, 1996 were $.18 per share.
Earnings per share information is not applicable for any periods prior to
April 1, 1996, which was the date the Company completed the Conversion.
Earnings per share were computed by dividing net income for the three months
ended June 30, 1996 by the average number of common shares outstanding.
Shares outstanding for June 30, 1996 do not include ESOP shares that have not
been committed to be released in accordance with Statement of Position (SOP)
93-6 "Employers' Accounting for Employee Stock Ownership Plans." Reported
earnings per share are based on 2,007,555 common shares.
Note 6 - Employee Stock Ownership Plan (ESOP)
------------------------------------
In connection with the Conversion, the Company established an ESOP for the
benefit of eligible employees. The ESOP Trust borrowed $1.9 million from the
Company and purchased 174,570 shares, equal to 8% of the total number of
shares issued in the offering. The Company accounts for its ESOP in
accordance with SOP 93-6, "Employers Accounting for Employee Stock Ownership
Plans" which requires the Company to recognize compensation expense equal to
the fair value of the ESOP shares during the periods in which they become
committed to be released. To the extent that the fair value of ESOP shares
differs from the cost of such shares, this differential will be charged or
credited to equity. Management expects the recorded amount of expense to
fluctuate as continuing adjustments are made to reflect changes in the fair
value of the ESOP shares. Employers with internally leveraged ESOPs, such as
the Company, will not report the loan receivable from the ESOP as an asset
and will not report the ESOP debt from the employer as a liability.
Note 7 - Contingencies
-------------
The undercapitalized status of the Federal Deposit Insurance Corporation's
("FDIC") Savings Association Insurance Fund ("SAIF") has resulted in the
introduction of federal legislation to recapitalize the SAIF which, if
enacted would require thrifts like the Bank to pay a one-time charge of
approximately $.80 to $.85 for every $100 of assessable deposits. Based on
total deposits of $114.6 million at June 30, 1995, the Bank's share would
amount to approximately $917,000 to $974,000 on a pre-tax basis.
<PAGE> 9
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
FINANCIAL CONDITION
At June 30, 1996, the Company's total assets amounted to $184.0 million
compared with $157.6 million at September 30, 1995, an increase of 16.6%.
Assets increased primarily as a result of the April 1996 stock offering which
resulted in $21.0 million of net proceeds. See Note 4 of the Notes to
Unaudited Consolidated Financial Statements included in Item 1. The asset
growth was also funded by $5.0 million or 17.2% increased borrowings from the
Federal Home Loan Bank (FHLB). Investments and mortgage-backed securities
increased $4.2 million or 9.1% from $46.2 million at September 30, 1995 to
$50.4 million at June 30, 1996. This increase was primarily the result of the
reinvestment of a portion of the cash received in the stock offering. Pursuant
to Statement of Financial Accounting Standards No. 115, "Accounting for Certain
Investments in Debt and Equity Securities" ("SFAS 115") at June 30, 1996, the
Company had $50.4 million of investments and mortgage-backed securities
classified as available for sale. The after tax net unrealized loss on these
securities at such date amounted to $120,000, which is reflected as a separate
component of shareholders' equity. The Company's loans receivable increased
$22.0 million or 21.4% to $124.9 million at June 30, 1996 compared to $102.9
million at September 30, 1995. This increase was primarily related to single
family residential mortgage loans. This growth was funded with a portion of
the proceeds of the stock offering, principal repayments, and borrowings from
the FHLB.
Total liabilities increased by $6.6 million or 4.5% to $153.6 million at June
30, 1996 compared to $147.0 at September 30, 1995. Deposits decreased $616,000
or .5% to $114.9 million at June 30, 1996 compared to $115.5 million at
September 30, 1995. Deposits decreased primarily as a result of depositors
using funds on deposit to subscribe for stock in the Conversion. Borrowed
funds increased $5.0 million or 17.2% to $34.0 million at June 30, 1996 from
$29.0 million at September 30, 1995, as the Company increased its short-term
FHLB advances to increase liquidity and used those funds to reinvest in assets
at higher yields.
Total shareholders' equity increased $19.8 million to $30.4 million at June
30, 1996 compared to $10.6 million at September 30, 1995. This increase was a
result of $21.0 million of net proceeds from the stock offering and net income
of $831,000, which was offset by the unrealized loss on assets available for
sale of $120,000, and the unearned common stock held by Company's ESOP of $1.9
million.
<PAGE> 10
RESULTS OF OPERATIONS
GENERAL. Net income was $369,000 or $.18 per share for the three months
ended June 30, 1996 compared to $230,000 for the three month period ended June
30, 1995, an increase of 60.4%. The $139,000 increase in net income for the
three months ended June 30, 1996 as compared to the same period in 1995 was
primarily the result of an increase in net interest income of $452,000 or
44.2%, which was partially offset by an increase in provision for loan losses
of $61,000 or 210.3%, an increase in total noninterest expense of $203,000 or
28.7%, and an increase in provision for income taxes of $59,000 or 42.9%. Net
income was $831,000 for the nine months ended June 30, 1996 compared to
$663,000 for the nine months ended June 30, 1995. The $168,000 or 25.3%
increase in net income for the nine months ended June 30, 1996 compared to the
same period in the prior year was primarily the result of an increase in net
interest income of $730,000 or 23.8% and an increase in noninterest income of
$32,000 or 13.0%, which was partially offset by an increase in the provision
for loan losses of $133,000 or 172.7%, an increase in total noninterest expense
of $380,000 or 17.4%, and an increase in provision for income taxes of $81,000
or 20.5%.
INTEREST INCOME. Interest income totalled $3.3 million and $9.3 million for
the three and nine months periods ended June 30, 1996, respectively, compared
to $2.6 million and $7.1 million during the same periods in 1995, respectively.
The $650,000 or 25.0% increase for the three months ended June 30, 1996
compared to the same period in 1995 was primarily due to an increase in average
interest-earning assets of $35.0 million. The $2.2 million or 29.9% increase
in interest income for the nine month period ended June 30, 1996 compared to
the same period in 1995 was due to an increase in average interest-earning
assets of $32.6 million and an increase of 29 basis points in the weighted
average yield on interest-earning assets. The average balance of investment
and mortgage-backed securities totalled $45.7 million and had a weighted
average yield of 6.1% for the nine months ended June 30, 1996 compared to $51.6
million with a weighted average yield of 5.7% for the nine month period ended
June 30, 1995. The average balance of loans receivable for the nine months
ended June 30, 1996 was $111.5 million with a weighted average yield of 8.3%
compared to $74.4 million with a weighted average yield of 8.6% for the nine
months ended June 30, 1995. This increase was primarily all related to single
family residential mortgage loans. Average other earning assets was $6.5
million with a weighted average yield of 6.1% for the nine months ended June
30, 1996 compared to $5.2 million with a weighted average yield of 5.5% for the
nine months ended June 30, 1995.
INTEREST EXPENSE. Interest expense increased to $1.8 million and $5.5
million for the three and nine month periods ended June 30, 1996, respectively,
compared to $1.6 million and $4.1 million during the same periods in 1995,
respectively. The $198,000 or 12.5% increase in interest expense for the three
month period ended June 30, 1996 compared to the same time period last year was
due primarily to a $14.7 million increase in average interest-bearing
liabilities. The $1.4 million increase in interest expense for the nine month
period ended June 30, 1996 compared to the same time period in 1995 was due to
an increase in average interest-
<PAGE> 11
bearing liabilities of $25.2 million and an increase of 51 basis points in the
average cost of funds. Average deposits increased $4.5 million for the nine
month period ended June 30, 1996 compared to the same period in 1995
notwithstanding the $5.0 million in subscriptions for the Company's stock in the
Conversion which were funded with deposits. Average borrowed funds increased
$17.7 million for the nine month period ended June 30, 1996 compared to the same
period in 1995. The increase in the average cost of funds occurred in all
respective categories of interest-bearing liabilities.
NET INTEREST INCOME. Net interest income amounted to $1.5 million and $3.8
million for the three and nine month periods ended June 30, 1996, respectively,
compared to $1.0 million and $3.1 million during the same periods in 1995,
respectively. The Company's net interest margin increased to 3.40% for the
three month period ended June 30, 1996, from 2.95% for the same period in 1995,
and decreased to 3.10% for the nine months ended June 30, 1996 from 3.12% for
the same period in 1995. Average net interest-earning assets increased $35.0
million and $32.6 million for the three and nine month periods ended June 30,
1996, primarily as a result of funds received in the Conversion.
PROVISION FOR LOAN LOSSES. During the three and nine months ended June 30,
1996, the Company recorded provisions for losses on loans of $90,000 and
$210,000, respectively, compared to $29,000 and $77,000 for the comparable
periods in fiscal 1995. The Company recorded such provisions to adjust the
allowance for loan losses to a level deemed appropriate by management based
upon an assessment of the volume and type of lending presently being conducted
by the Company, industry standards and economic conditions in the Company's
market area. The increases in the fiscal 1996 periods reflect the increased
amount of lending by the Company.
NONINTEREST INCOME. Noninterest income increased by $10,000 or 12.2% and
$31,000 or 13.0% for the three and nine months ended June 30, 1996,
respectively, compared to the three and nine months ended June 30, 1995. Such
increases were primarily due to miscellaneous sources of other income.
NONINTEREST EXPENSES. Noninterest expenses increased by $203,000 or 28.7%
and $380,000 or 17.4% for the three and nine months ended June 30, 1996,
respectively, compared to the same periods during fiscal 1995. Such increases
were primarily attributable to the expenses related to the opening of the
Savings Bank's sixth branch office in a supermarket located in the Mt. Lebanon
area of Pittsburgh, Pennsylvania, as well as increases in general personnel and
professional expenses.
PROVISION FOR INCOME TAXES. The Company incurred provisions for income taxes
of $197,000 and $475,000 during the three and nine months ended June 30, 1996,
respectively, compared with $230,000 and $663,000 for the comparable periods in
fiscal 1995. The effective tax rates during the three and nine months ended
June 30, 1996 were 34.8% and 36.4%,
<PAGE> 12
respectively, compared to 37.5% and 37.3% for the comparable 1995 periods. The
decreases in the effective rates are primarily due to increased earnings from
bank-qualified tax exempt investments.
LIQUIDITY AND CAPITAL RESOURCES
The Company's primary sources of funds are deposits, borrowings, repayments,
prepayments and maturities of outstanding loans, maturities of investment
securities and other short-term investments, and funds provided from
operations. While scheduled loan repayments and maturing investment securities
and short-term investments are relatively predictable sources of funds, deposit
flows and loan prepayments are greatly influenced by the movement of interest
rates in general, economic conditions and competition. The Company manages the
pricing of its deposits to maintain a deposit balance deemed appropriate and
desirable. In addition, the Company invests in short-term investment
securities and interest-earning assets which provide liquidity to meet lending
requirements. At June 30, 1996, the Company had $7.5 million in mortgage loan
commitments outstanding. Deposits scheduled to mature in the 12 months ended
June 30, 1997 total $42.7 million. The Company expects the majority of these
deposits to remain with the Bank. Although the Company's deposits have
historically represented the majority of its total liabilities, the Company
also utilizes other borrowing sources, primarily advances from the FHLB of
Pittsburgh. At June 30, 1996, the Company had $34.0 million of outstanding
advances from the FHLB of Pittsburgh.
As of June 30, 1996, the Savings Bank's regulatory capital was well in excess
of all applicable regulatory requirements. At June 30, 1996, the Savings
Bank's Tier 1 risk-based, total risk-based and Tier 1 leverage capital ratios
amounted to 25.98%, 27.23% and 12.41%, respectively, compared to regulatory
requirements of 4.0%, 8.0% and 4.0%, respectively.
<PAGE> 13
PITTSBURGH HOME FINANCIAL CORP.
PART II
Item 1. Legal Proceedings
-----------------
Neither the Company nor the Savings Bank is involved in any pending
legal proceedings other than non-material legal proceedings occurring
in the ordinary course of business.
Item 2. Changes in Securities
---------------------
Not applicable.
Item 3. Defaults Upon Senior Securities
-------------------------------
Not applicable.
Item 4. Submission of Matters to a Vote of Security-Holders
---------------------------------------------------
Not applicable.
Item 5. Other Information
-----------------
None.
Item 6. Exhibits and Reports on Form 8-K
--------------------------------
None.
<PAGE> 14
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.
PITTSBURGH HOME FINANCIAL CORP.
Date: August 9, 1996 By: /s/ J. ARDIE DILLEN
-----------------------------
J. Ardie Dillen
President and Chief
Executive Officer
Date: August 9, 1996 By: /s/ MICHAEL J. KIRK
-----------------------------
Michael J. Kirk
Senior Vice President and
Chief Financial Officer
<TABLE> <S> <C>
<ARTICLE> 9
<CIK> 0001003936
<NAME> PITTSBURGH HOME FINANCIAL CORP.
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> SEP-30-1996
<PERIOD-START> OCT-01-1995
<PERIOD-END> JUN-30-1996
<CASH> 765,855
<INT-BEARING-DEPOSITS> 2,152,303
<FED-FUNDS-SOLD> 0
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 50,409,821
<INVESTMENTS-CARRYING> 0
<INVESTMENTS-MARKET> 0
<LOANS> 126,072,846
<ALLOWANCE> 1,138,440
<TOTAL-ASSETS> 184,002,183
<DEPOSITS> 114,881,120
<SHORT-TERM> 9,000,000
<LIABILITIES-OTHER> 4,714,803
<LONG-TERM> 25,000,000
0
0
<COMMON> 21,821
<OTHER-SE> 30,384,439
<TOTAL-LIABILITIES-AND-EQUITY> 30,406,260
<INTEREST-LOAN> 6,924,585
<INTEREST-INVEST> 2,109,280
<INTEREST-OTHER> 297,529
<INTEREST-TOTAL> 9,331,397
<INTEREST-DEPOSIT> 3,939,763
<INTEREST-EXPENSE> 5,529,434
<INTEREST-INCOME-NET> 3,801,963
<LOAN-LOSSES> 210,000
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 2,286,609
<INCOME-PRETAX> 1,305,354
<INCOME-PRE-EXTRAORDINARY> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 830,779
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
<YIELD-ACTUAL> 7.60
<LOANS-NON> 2,251,000
<LOANS-PAST> 2,251,000
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 920,685
<CHARGE-OFFS> 12,455
<RECOVERIES> 20,210
<ALLOWANCE-CLOSE> 1,138,440
<ALLOWANCE-DOMESTIC> 210,000
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
