<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 December 31, 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)
<TABLE>
<S> <C>
- -------------------------------------------------------------- -------------------------
Pennsylvania 25-1772349
(State or other jurisdiction of incorporation or organization) (I.R.S. Employer
Identification Number)
- -------------------------------------------------------------- -------------------------
438 Wood Street
Pittsburgh, Pennsylvania 15222
(Address of principal executive office) (Zip Code)
</TABLE>
(412) 281-0780
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(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 February 7,
1997, there were issued and outstanding 2,073,019 shares of the Registrant's
Common Stock, par value $.01 per share.
<PAGE> 2
PITTSBURGH HOME FINANCIAL CORP. AND SUBSIDIARY
TABLE OF CONTENTS
<TABLE>
<CAPTION>
PAGE
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PART I. FINANCIAL INFORMATION
- ------- ---------------------
<S> <C> <C>
Item 1. Financial Statements
Consolidated Statements of Financial Condition as of December 31, 1996
(unaudited) and September 30, 1996 3
Consolidated Statements of Income for the three
months ended December 31, 1996 (unaudited) and 1995 (unaudited). 4
Consolidated Statement of Changes in Shareholders' Equity
for the three months ended December 31, 1996
(unaudited) 5
Consolidated Statements of Cash Flows for the
three months ended December 31, 1996 (unaudited) and 1995 (unaudited). 6
Notes to Unaudited Consolidated Financial Statements 7
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 11
<CAPTION>
PART II. OTHER INFORMATION
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<S> <C> <C>
Item 1. Legal Proceedings 14
Item 2. Changes in Securities 14
Item 3. Defaults Upon Senior Securities 14
Item 4. Submission of Matters to a Vote of Security-Holders 14
Item 5. Other Information 14
Item 6. Exhibits and Reports on Form 8-K 15
</TABLE>
SIGNATURES
<PAGE> 3
PITTSBURGH HOME FINANCIAL CORP. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
<TABLE>
<CAPTION>
December 31, September 30,
1996 1996
(Unaudited)
--------------------- ------------------
<S> <C> <C>
ASSETS
Cash $ 1,351,039 $ 915,326
Interest-bearing deposits 5,548,125 6,646,384
--------------------- ------------------
6,899,164 7,561,710
Investments and mortgage-backed securities; available for sale 45,732,694 46,305,705
Investments and mortgage-backed securities; held to maturity
(fair value of $9,949,549) 10,023,047 -
Loans receivable, net of allowance of $1,199,991 and
$1,128,279 148,267,736 135,551,534
Accrued interest receivable 1,453,284 1,243,462
Premises and equipment, net 2,437,516 1,900,149
Goodwill 327,393 -
Federal Home Loan Bank - at cost 2,775,000 1,875,000
Deferred income taxes 401,632 523,632
Foreclosed real estate 217,849 133,256
Other assets 157,851 235,317
--------------------- ------------------
Total assets $ 218,693,166 $ 195,329,765
===================== ==================
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits $ 135,992,771 $ 124,341,573
Advances from Federal Home Loan Bank 49,500,000 36,500,000
Advances by borrowers for taxes and insurance 2,699,781 1,847,815
Accrued income taxes payable 406,189 496,029
Other liabilities 1,672,052 1,772,332
--------------------- ------------------
Total liabilities 190,270,793 164,957,749
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 21,821
Additional paid-in capital 20,966,832 20,958,806
Treasury stock - at cost, 109,106 shares at December 31, 1996 (1,429,930) -
Unearned shares of employee stock ownership plan (1,783,539) (1,831,720)
Unearned shares of recognition and retention plan (1,027,730) -
Unrealized gain (loss) on securities available for sale 196,000 (50,000)
Retained earnings (substantially restricted) 11,478,919 11,273,109
--------------------- ------------------
Total shareholders' equity 28,422,373 30,372,016
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 218,693,166 $ 195,329,765
===================== ==================
</TABLE>
See accompanying notes to unaudited consolidated financial statements.
3
<PAGE> 4
PITTSBURGH HOME FINANCIAL CORP. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME
<TABLE>
<CAPTION>
THREE MONTHS ENDED
DECEMBER 31,
(UNAUDITED)
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1996 1995
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<S> <C> <C>
Interest income:
Loans receivable $ 2,897,742 $ 2,254,706
Mortgage-backed securities 392,926 440,346
Investment securities
Taxable 429,228 200,914
Tax exempt 79,923 35,158
Interest-bearing deposits 94,480 55,191
------------------ -----------------
Total interest income 3,894,299 2,986,315
Interest expense:
Deposits 1,515,019 1,363,967
Interest on advances and other borrowings 733,362 521,971
------------------ -----------------
Total interest expense 2,248,381 1,885,938
------------------ -----------------
Net interest income before provision for losses on loans 1,645,918 1,100,377
Provision for losses on loans 75,000 60,000
------------------ -----------------
Net interest income after provision for losses on loans 1,570,918 1,040,377
Noninterest income:
Service charges and other fees 17,115 29,425
Other income 93,072 63,134
------------------ -----------------
Total noninterest income 110,187 92,559
Noninterest expenses:
Salaries and employee benefits 556,372 426,475
Net occupancy expense 130,780 63,271
Amortization of goodwill 2,751 -
Federal insurance premium - 77,348
Advertising 54,099 47,277
Data processing costs 56,569 40,661
Other operating expense 195,074 124,175
------------------ -----------------
Total noninterest expense 995,645 779,207
------------------ -----------------
Income before income taxes 685,460 353,729
Income taxes 242,454 134,000
------------------ -----------------
Net income $ 443,006 $ 219,729
================== =================
Earnings per share $ 0.22 N/A
================== =================
</TABLE>
See accompanying notes to unaudited consolidated financial statements.
4
<PAGE> 5
PITTSBURGH HOME FINANCIAL CORP. AND SUBSIDIARY
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
FOR THE QUARTER ENDED DECEMBER 31, 1996
<TABLE>
<CAPTION>
Additional
Common Paid In Retained Treasury
Stock Capital Earnings Stock
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<S> <C> <C> <C> <C>
Balance as of September 30, 1996 $ 21,821 $ 20,958,806 $ 11,273,109 $ -
Acquisition of Treasury stock - - - (1,429,930)
Stock acquired for Management Recognition
and Retention Plan - - - -
Amortization of Employee Stock Ownership
Plan - - - -
Amortization of the Recognition
and Retention Plan - - - -
Commitment for release of ESOP shares - 8,026 - -
Change in allowance for unrealized
loss on assets available for sale - - - -
Net income for period - - 443,006 -
Cash dividends declared - - (237,196) -
------------------------------------------------------------------------------------
Balance as of December 31, 1996 (Unaudited) $ 21,821 $ 20,966,832 $ 11,478,919 $ (1,429,930)
====================================================================================
</TABLE>
<TABLE>
<CAPTION>
Unrealized loss
Unearned shares of on assets Total
Employee Stock Unearned shares of available for Shareholders'
Ownership Plan RRP sale Equity
------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Balance as of September 30, 1996 $ (1,831,720) $ - $ (50,000) $ 30,372,016
Acquisition of Treasury stock - - - (1,429,930)
Stock acquired for Management Recognition
and Retention Plan - (1,063,170) - (1,063,170)
Amortization of Employee Stock Ownership
Plan 48,181 - - 48,181
Amortization of the Recognition
and Retention Plan - 35,440 - 35,440
Commitment for release of ESOP shares - - - 8,026
Change in allowance for unrealized
loss on assets available for sale - - 246,000 246,000
Net income for period - - - 443,006
Cash dividends declared - - - (237,196)
------------------------------------------------------------------------------------
Balance as of December 31, 1996 (Unaudited) $ (1,783,539) $ (1,027,730) $ 196,000 $ 28,422,373
====================================================================================
</TABLE>
See accompanying notes to unaudited financial statements.
5
<PAGE> 6
PITTSBURGH HOME FINANCIAL CORP. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
For the three months ended December 31,
1996 1995
------------------- -------------------
(Unaudited)
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net income $ 443,006 $ 219,729
Adjustments to reconcile net income to net cash provided by
operating activities:
Depreciation 44,456 31,866
Amortization and accretion of premiums and discounts on
assets and deferred loan fees 1,493 (16,893)
Provision for loan losses 75,000 60,000
Deferred tax benefit 122,000 -
Amortization of employee ESOP plan 48,181 -
Amortization of recognition and retention plan 35,440 -
Commitment for release of ESOP shares 8,026 -
Other, net (322,476) 96,110
------------------- -------------------
Net cash provided by operating activities 455,126 390,812
CASH FLOWS FROM INVESTING ACTIVITIES
Loan orginations (21,599,154) (15,104,485)
Loan and Mortgage-backed securities principal repayments 8,741,724 7,980,194
Proceeds from loan sales 617,700 648,500
Purchases of:
Investment securities and mortgage-backed securities (12,225,000) (850,000)
Sales and maturities of:
Investment securities and mortgage-backed securities 1,325,000 3,000,000
Purchases of premises and equipment (909,217) (109,648)
Disposal of premises and equipment - -
Other 158,407 -
------------------- -------------------
Net cash (used) provided by investing activities (23,890,540) (4,435,439)
CASH FLOWS FROM FINANCING ACTIVITIES
Net increase in checking, passbook, and money market
deposit accounts 3,545,298 173,358
Net increase (decrease) in certificates of deposit 8,105,900 (1,053,000)
Increase in advances by borrowers for taxes and insurance 851,966 1,269,012
Increase in advances from the Federal Home Loan Bank 13,000,000 3,000,000
Cash dividends paid to shareholders (237,196) -
Purchase of recognition and retention plan shares (1,063,170) -
Purchase of treasury stock (1,429,930) -
------------------- -------------------
Net cash provided by financing activities 22,772,868 3,389,370
Net decrease in cash and cash equivalents (662,546) (655,257)
Cash and cash equivalents at beginning of year 7,561,710 3,544,603
------------------- -------------------
Cash and cash equivalents at end of year $ 6,899,164 $ 2,889,346
=================== ===================
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash paid during the year for:
Interest (includes interest credited on deposits of $1,515,019 and $1,374,351
in 1996, and 1995 respectively) $ 2,284,132 $ 1,896,322
=================== ===================
Income taxes paid (refund) $ 251,300 $ (228,734)
=================== ===================
SUPPLEMENTAL SCHEDULE OF NONCASH INVESTING AND FINANCING ACTIVITIES
Foreclosed mortgage loans transferred to real estate owned (84,593) -
Unrealized loss on investment securities and mortgage-backed securities 298,000 (499,323)
Deferred income taxes (102,000) 169,323
------------------- -------------------
Net unrealized loss on investment and mortgage-backed securities $ 196,000 (330,000)
=================== ===================
</TABLE>
See accompanying notes to unaudited consolidated financial statements.
6
<PAGE> 7
PITTSBURGH HOME FINANCIAL CORP. AND SUBSIDIARY
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
Note 1 - Basis of Presentation
The accompanying unaudited consolidated financial statements of
Pittsburgh Home Financial Corp. (the "Company") have been prepared in
accordance with instructions to Form 10-Q. Accordingly, they do not
include all of the information and footnotes required by generally
accepted accounting principles for complete financial statements.
However, such information reflects all adjustments (consisting solely of
normal recurring adjustments) which are, in the opinion of management,
necessary for a fair statement of results for the interim periods.
The results of operations for the three months ended December 31, 1996
are not necessarily indicative of the results to be expected for the
year ending September 30, 1997. The unaudited consolidated financial
statements and notes thereto should be read in conjunction with the
audited financial statements and notes thereto for the year ended
September 30, 1996.
Note 2 - Business
The Company's subsidiary, Pittsburgh Home Savings Bank (the "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 seven 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.
7
<PAGE> 8
Note 4 - Conversion
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 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 December 31, 1996 were $.22 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 December 31, 1996 by the average number of common
shares outstanding. Shares outstanding for December 31, 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 1,985,903 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 Conversion. 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.
8
<PAGE> 9
Note 7 - Stock Option Plan
On October 15, 1996, the Stock Option Plan was approved by the Company's
stockholders. A total of 218,212 shares of common stock may be issued
pursuant to the Stock Option Plan and 157,737 shares were awarded during
the three months ended December 31, 1996. These options are subject to
vesting provisions as well as other provisions of the Stock Option Plan.
No options have been exercised through December 31, 1996.
Note 8 - Recognition and Retention Plan and Trust (RRP)
On October 15, 1996, the RRP was approved by the Company's stockholders.
A total of 87,285 shares of common stock are available for awards
pursuant to the RRP and 67,960 shares were awarded during the three
months ended December 31, 1996. Awards will vest in equal installments
over a five year period, with the first installment vesting on the first
anniversary date of the grant and each additional installment vesting on
the four subsequent anniversaries of such date, subject to various
requirements as more fully described in the plan documents.
Compensation cost related to RRP shares earned during the three month
period ended December 31, 1996 was $35,440.
The Company purchased on the open market 87,285 shares of common stock
during the three months ended December 31, 1996 to fully fund the RRP.
The cost of unearned RRP shares is recorded as a reduction of
shareholders' equity.
Note 9 - Recent Accounting and Regulatory Developments
The Financial Accounting Standards Board released Statement of Financial
Accounting Standard Number 123, "Accounting for Stock-Based
Compensation" ("SFAS 123") in October 1995. Effective for fiscal years
beginning after December 15, 1995, SFAS 123 outlines preferable
accounting treatment and reporting guidelines for employee stock option
plans. The Company plans to continue to measure compensation cost using
the method of accounting prescribed by Accounting Principles Board
("APB") Opinion Number 25.
The Financial Accounting Standards Board released Statement of Financial
Accounting Standard Number 125, "Accounting for Transfers and Servicing
of Financial Assets and Extinguishments of Liabilities" ("SFAS 123") in
June 1996. SFAS 125 is effective for transfers and servicing of
financial assets and extinguishments of liabilities occurring after
December 31, 1996 and is to be applied prospectively. SFAS 125
establishes standards for resolving issues related to the circumstances
under which the transfer of financial assets should be considered as
sales of all or part of the assets or as secured borrowings and about
when a liability should be considered extinguished. The Company does
not
9
<PAGE> 10
anticipate any material impact on statements of income and financial condition
from the adoption of this statement.
10
<PAGE> 11
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
FINANCIAL CONDITION
At December 31, 1996, the Company's total assets amounted to $218.7
million compared with $195.3 million at September 30, 1996, an increase of
12.0%. Cash and interest-bearing deposits decreased $663,000, or 8.8%, to $6.9
million at December 31, 1996, compared to $7.6 million at September 30, 1996.
The decrease reflects the payment of dividends and the purchase of treasury
stock and RRP shares. Investments and mortgage-backed securities (held to
maturity and available for sale) increased by $9.5 million, or 20.4%, from
$46.3 million at September 30, 1996. The Company purchased $12.2 million in
investments and mortgage-backed securities during the period, which was
partially offset by maturities. Loans receivable, net of allowance, increased
$12.7 million, or 9.4%, to $148.3 million at December 31, 1996 compared to
$135.6 million at September 30, 1996. The growth is primarily attributable to
increases in residential mortgage loans.
Total liabilities increased by $25.3 million or 15.3% to $190.3 million
at December 31, 1996 compared to $165.0 at September 30, 1996. Deposits
increased by $11.7 million or 9.4% to $136.0 million at December 31, 1996
compared to $124.3 million at September 30, 1996. During the period, the Bank
acquired the branch ("Branch Acquisition") of another financial institution
located in Pittsburgh and assumed all the deposits and acquired all equipment
and real estate associated with the branch. Borrowed funds increased $13.0
million or 35.6% to $49.5 million at December 31, 1996 compared to $36.5
million at September 30, 1996, as the Company increased its Federal Home Loan
Bank ("FHLB") advances to increase liquidity and used those funds to reinvest
in assets at higher yields.
Total shareholders' equity decreased $1.9 million or 6.4% to $28.4
million at December 31, 1996 compared to $30.4 million at September 30, 1996.
The decrease was the result of the Company's repurchase of its common stock and
the funding of the RRP, partially offset by net income during the period.
11
<PAGE> 12
RESULTS OF OPERATIONS
GENERAL. The Company reported net income of $443,000 or $.22 per share
for the three months ended December 31, 1996 compared to $220,000 for the three
months ended December 31, 1995, an increase of 101.4%. The $223,000 increase
in net income for the three months ended December 31, 1996 as compared to the
same period in 1995 was primarily the result of an increase in net interest
income after the provision for losses on loans of $531,000 or 51.0%, which was
partially offset by an increase in provision for loan losses of $15,000 or
25.0%, an increase in total noninterest expense of $216,000 or 27.7%, and an
increase in the provision for income taxes of $108,000 or 80.6%.
INTEREST INCOME. Interest income increased $908,000 or 30.4% for the
three months ended December 31, 1996, compared to the same period in 1995. The
increase was primarily due to an increase in investment and loan origination
activity. The average balance of investment and mortgage-backed securities
totaled $52.1 million and had a weighted average yield of 6.3% compared to
$44.1 million with a weighted average yield of 6.1% for the same period in
1995. The average balance on loans receivable increased by $35.9 million,
which was partially offset by a 34 basis point decline in the average yield
earned thereon.
INTEREST EXPENSE. Interest expense increased to $2.2 million for the
three months ended December 31, 1996, compared to $1.9 million during the same
period in 1995. The $362,000 or 19.2% increase in interest expense for the
three month period ended December 31, 1996, compared to the same time period
last year was due primarily to a $29.5 million increase in average
interest-bearing liabilities. Average deposits increased $11.9 million for the
three months ended December 31, 1996 when compared to the same period in 1995.
Average borrowed funds increased $17.5 million for the three month period ended
December 31, 1996 when compared to the same period in 1995. Such increases
were primarily due to the Branch Acquisition, as well as, increased borrowings
from the FHLB of Pittsburgh.
PROVISION FOR LOAN LOSSES. During the three months ended December 31,
1996, the Company recorded provisions for losses on loans of $75,000 compared
to $60,000 for the comparable period in 1995. The Company recorded such
provisions to adjust the Company's allowance for loan losses to a level deemed
appropriate 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 increase in the 1996 period
primarily reflects the increased amount of lending by the Company.
NONINTEREST INCOME. Noninterest income increased by $18,000 or 19.4%
for the three months ended December 31, 1996, compared to the three months
ended December 31, 1995. Such increases were primarily due to miscellaneous
sources of other income.
12
<PAGE> 13
NONINTEREST EXPENSES. Noninterest expenses increased by $216,000 or
27.8% for the three months ended December 31, 1996, compared to the same period
during 1995. The increase was primarily attributable to an $130,000 increase
in salaries and employee benefits, a $68,000 increase in net occupancy expense,
and a $71,000 increase in other operating expenses (consisting primarily of
office supplies, legal and professional fees). The increase in salaries and
employee benefits is due to normal salary increases, the hiring of two new
employees, and the addition of the RRP. The increase in net occupancy expense
is the result of the Branch Acquisition.
PROVISION FOR INCOME TAXES. The Bank incurred provisions for income
taxes of $242,000 during the three months ended December 31, 1996, compared
with $134,000 for the same period in 1995. The effective tax rates during the
three months ended December 31, 1996 and 1995 were 35.4% and 37.9%,
respectively.
LIQUIDITY AND CAPITAL RESOURCES
The Company's primary sources of funds are deposits, 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. 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 December
31, 1996, the Company had $49.5 million of outstanding advances from the FHLB
of Pittsburgh.
As of December 31, 1996, the Bank's regulatory capital was well in
excess of all applicable regulatory requirements. At December 31, 1996, the
Bank's Tier 1 risk-based, total risk-based and Tier 1 leverage capital ratios
amounted to 21.76%, 23.01% and 10.20%, respectively, compared to regulatory
requirements of 4.0%, 8.0% and 4.0%, respectively.
13
<PAGE> 14
PITTSBURGH HOME FINANCIAL CORP. AND SUBSIDIARY
PART II
Item 1. Legal Proceedings
Neither the Company nor the 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
a) A Special Meeting of Stockholders ("Special Meeting") was
held on October 15, 1996.
b) Not applicable.
c) Two matters were voted upon at the Special Meeting. The
matters voted upon together with the applicable voting results
were as follows:
1) Proposal to consider and approve the adoption of the
Company's Stock Option Plan - votes for 1,214,495; votes against
422,730; abstain 19,040; and not voted 525,860.
2) Proposal to consider and approve the Company's RRP -
votes for 1,187,046; votes against 451,409; abstain 17,810, and
not voted 525,860.
d) Not applicable
Item 5. Other Information
None.
14
<PAGE> 15
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits:
27 Financial Data Schedule
(b) No Form 8-K reports were filed during the quarter.
15
<PAGE> 16
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: February 7, 1997 By: /s/ J. Ardie Dillen
---------------------
J. Ardie Dillen
President and Chief
Executive Officer
Date: February 7, 1997 By: /s/ Michael J. Kirk
---------------------
Michael J. Kirk
Senior Vice President and Chief
Financial Officer
<TABLE> <S> <C>
<ARTICLE> 9
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> SEP-30-1997
<PERIOD-START> OCT-01-1996
<PERIOD-END> DEC-31-1996
<CASH> 1,351,039
<INT-BEARING-DEPOSITS> 5,548,125
<FED-FUNDS-SOLD> 0
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 45,732,694
<INVESTMENTS-CARRYING> 10,023,047
<INVESTMENTS-MARKET> 9,949,549
<LOANS> 149,467,727
<ALLOWANCE> 1,199,991
<TOTAL-ASSETS> 218,693,166
<DEPOSITS> 135,992,771
<SHORT-TERM> 6,750,000
<LIABILITIES-OTHER> 1,672,052
<LONG-TERM> 42,750,000
0
0
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<INTEREST-INVEST> 902,077
<INTEREST-OTHER> 94,480
<INTEREST-TOTAL> 3,894,299
<INTEREST-DEPOSIT> 1,515,019
<INTEREST-EXPENSE> 2,248,381
<INTEREST-INCOME-NET> 1,645,918
<LOAN-LOSSES> 75,000
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<EXPENSE-OTHER> 885,458
<INCOME-PRETAX> 685,460
<INCOME-PRE-EXTRAORDINARY> 0
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<CHANGES> 0
<NET-INCOME> 443,006
<EPS-PRIMARY> .22
<EPS-DILUTED> .22
<YIELD-ACTUAL> 7.63
<LOANS-NON> 3,144,000
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<ALLOWANCE-CLOSE> 1,199,991
<ALLOWANCE-DOMESTIC> 0
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</TABLE>
