<PAGE>
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OR THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 1997
-------------------------------
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: 0-28700
FIRST HOME BANCORP INC.
------------------------------------------------------
(Exact name of registrant as specified in its charter)
New Jersey 22-3423990
- ------------------------------ ------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
125 South Broadway, Pennsville, New Jersey 08070
- -------------------------------------------------------------------------------
(Address of principal executive offices)
(Zip Code)
(609) 678-4400
- -------------------------------------------------------------------------------
(Registrant's telephone number, including area code)
- -------------------------------------------------------------------------------
(Former name, former address and former fiscal year, if changes since last
report)
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
---- ----
APPLICABLE ONLY TO CORPORATE ISSUERS: Indicate the number of shares outstanding
of each of the issuer's classes of common stock, as of the latest practicable
date:
Common Stock, No par value, 2,708,426 shares as of August 13, 1997.
<PAGE>
FIRST HOME BANCORP INC.
AND SUBSIDIARY
INDEX
Page
Number
------
Part I Financial Information:
Item 1: Financial Statements:
Consolidated Statements of Financial Condition -
June 30, 1997 and December 31, 1996 (unaudited) 1
Consolidated Statements of Income -
Three and Six Months Ended June 30, 1997
and 1996 (unaudited) 2
Consolidated Statements of Cash Flows -
Six Months Ended June 30, 1997
and 1996 (unaudited) 3
Notes to Consolidated Financial Statements
(unaudited) 4
Item 2: Management's Discussion and Analysis of
Financial Condition and Results of Operations 10
Part II. Other Information:
Other Information 17
<PAGE>
Part I
Item 1.
FIRST HOME BANCORP INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
<TABLE>
<CAPTION>
June 30, December 31,
1997 1996
---- ----
(Unaudited)
(in thousands)
<S> <C> <C>
ASSETS
Cash and amounts due from depository institutions $ 5,439 $5,133
Interest-earning deposits and short-term funds 912 1,302
Investment securities held-to-maturity (market value -
1997 - $3,655; 1996 - $2,321) 3,655 2,321
Investment securities held for trading at market value 62 60
Investment securities available-for-sale at market value 23,737 24,975
Mortgage-backed securities held-to-maturity
(market value - 1997 - $112,928; 1996 - $98,418) 111,976 97,391
Mortgage-backed securities available-for-sale at market value 89,925 91,216
Loans receivable - net 269,928 258,234
Loans held for sale at market value 381 676
Accrued interest receivable 3,178 3,013
Real estate owned and other repossessed assets 704 948
Federal Home Loan Bank stock-at cost 7,376 7,376
Office properties and equipment 2,912 2,999
Deposit premium 573 631
Net deferred income taxes 1,138 1,347
Prepaid expenses and other assets 500 777
-------- --------
TOTAL ASSETS $522,396 $498,399
======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Deposits $309,039 $290,298
Borrowings from the Federal Home Loan Bank 131,102 136,622
Other borrowed funds 45,130 36,526
Advances by borrowers for taxes and insurance 609 445
Accrued interest payable on advances 562 588
Excess of fair value over cost --- 66
Accounts payable and accrued expenses 1,152 1,209
-------- --------
Total liabilities 487,594 465,754
-------- --------
Commitments and Contingencies (Note 13)
Shareholders' equity:
Preferred stock - No par value; 1,000,000 shares authorized;
none issued --- ---
Common stock - No par value; 10,000,000 shares authorized;
2,708,426 shares issued and outstanding at June 30, 1997 and
December 31, 1996 --- ---
Paid-in capital in excess of par 8,923 8,923
Retained earnings - partially restricted 26,469 24,592
Unrealized loss on securities available-for-sale (590) (870)
-------- --------
Total shareholders' equity 34,802 32,645
-------- --------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $522,396 $498,399
======== ========
</TABLE>
See notes to consolidated financial statements.
1
<PAGE>
FIRST HOME BANCORP INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
June 30, June 30, June 30, June 30,
1997 1996 1997 1996
---- ---- ---- ----
(Unaudited)
(in thousands)
<S> <C> <C> <C> <C>
INTEREST INCOME:
Interest and fees on loans $5,527 $5,389 $11,001 $10,769
Interest on mortgage-backed securities 3,601 3,071 6,994 5,935
Other interest income and dividends 569 569 1,143 1,158
------ ------ ------- -------
Total interest income 9,697 9,029 19,138 17,862
------ ------ ------- -------
INTEREST EXPENSE:
Interest on deposits 3,309 3,051 6,549 6,010
Interest on borrowed money 2,584 2,204 4,957 4,345
------ ------ ------- -------
Total interest expense 5,893 5,255 11,506 10,355
------ ------ ------- -------
NET INTEREST INCOME 3,804 3,774 7,632 7,507
PROVISION FOR CREDIT LOSSES 100 100 200 200
------ ------ ------- -------
NET INTEREST INCOME AFTER PROVISION FOR
CREDIT LOSSES 3,704 3,674 7,432 7,307
------ ------ ------- -------
OTHER INCOME:
Loan servicing fees 48 54 97 109
Service charges and other fees 137 150 294 289
Profit (loss) relating to:
Loans held for sale 4 (61) 7 (84)
Investment securities held for trading 37 77 91 113
Accretion of excess of fair value over cost 4 62 66 124
Miscellaneous income 98 37 130 77
------ ------ ------- -------
Total other income 328 319 685 628
------ ------ ------- -------
OPERATING EXPENSES:
General and administrative expense:
Salaries and employee benefits 1,064 1,009 2,106 2,045
Occupancy and equipment 333 315 647 626
Federal insurance premium 45 144 87 279
Other expenses 824 685 1,501 1,242
------ ------ ------- -------
Total general and administrative expenses 2,266 2,153 4,341 4,192
Amortization of deposit premium 29 64 57 129
Real estate operations, net 40 70 62 84
------ ------ ------- -------
Total operating expenses 2,335 2,287 4,460 4,405
------ ------ ------- -------
INCOME BEFORE INCOME TAXES 1,697 1,706 3,657 3,530
INCOME TAX EXPENSE 575 596 1,237 1,255
------ ------ ------- -------
NET INCOME $1,122 $1,110 $2,420 $2,275
====== ====== ======= =======
Earnings per share $ .41 $ .41 $ .89 $ .84
====== ====== ======= =======
Dividends per share $ .10 $ .09 $ .20 $ .18
====== ====== ======= =======
Weighted average number of shares outstanding 2,708,426 2,706,679 2,708,426 2,706,679
========= ========= ========= =========
</TABLE>
See notes to consolidated financial statements.
2
<PAGE>
FIRST HOME BANCORP INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CHANGES IN CASH FLOWS
<TABLE>
<CAPTION>
Six Months Ended
June 30, June 30,
1997 1996
---- ----
(Unaudited)
(in thousands)
<S> <C> <C>
OPERATING ACTIVITIES:
Net Income $ 2,420 $ 2,275
Adjustments to reconcile net income to net
cash provided by operating activities:
Provision for losses 200 200
Depreciation 192 162
Accretion of excess fair value over cost (66) (124)
Amortization of fair market premiums --- 42
Amortization of deposit premium 57 129
Investment security gains (91) (113)
Purchase of investment securities held for trading (3,751) (4,002)
Proceeds from sale of investment securities held for trading 3,840 3,259
Loans originated for sale (3,072) (4,211)
Proceeds from loans sold 3,373 3,075
Net (gain) loss on sale of loans (7) 84
Increase in accrued interest receivable (165) (80)
(Decrease) increase in accrued interest payable (26) 27
Decrease in net deferred tax asset 52 318
Net other 221 (1,244)
------- -------
Net cash (used in) provided by operating activities 3,177 (203)
------- -------
INVESTMENT ACTIVITIES:
Proceeds from maturities of investment securities 3,746 13,000
Purchase of investment securities (3,841) (10,040)
Purchase of mortgage-backed securities (21,027) (34,524)
Repayments on mortgage-backed securities 8,169 4,701
Purchase of FHLB stock --- (393)
Purchase of property and equipment (104) (520)
Decrease (increase) in real estate owned 244 (687)
Principal collected on longer term loans 23,902 29,704
Loans originated or acquired (35,796) (28,971)
------- -------
Net cash used by investing activities (24,707) (27,730)
------- -------
FINANCING ACTIVITIES:
Net increase in:
Demand deposits, NOW accounts, and savings accounts 9,190 2,058
Certificates of deposit 9,552 4,901
Proceeds from short-term borrowings 8,604 10,638
Proceeds from FHLB borrowings 9,000 14,000
Cash dividends and cash in lieu of fractional shares (542) (487)
Repayment of FHLB borrowings (14,521) (5,600)
Decrease in advance from borrowers for taxes and insurance 163 163
------- -------
Net cash provided by financing activities 21,446 25,673
------- -------
DECREASE IN CASH AND CASH EQUIVALENTS (84) (2,260)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 6,435 8,657
------- -------
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 6,351 $ 6,397
======= =======
</TABLE>
See notes to consolidated financial statements
3
<PAGE>
FIRST HOME BANCORP INC. AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - UNAUDITED
1. BASIS OF PRESENTATION
First Home Bancorp Inc. (the Company) is a New Jersey corporation which
is the holding company for First Home Savings Bank, F.S.B. (the Bank).
The Company was organized for the purpose of acquiring all of the
capital stock of the Bank in connection with the reorganization of the
Bank into the holding company form of ownership. Each outstanding share
of common stock of the Bank was converted into one share of common
stock of the Company. The reorganization was consummated on May 31,
1996.
In the opinion of management, the accompanying unaudited consolidated
financial statements contain all adjustments necessary to present
fairly the Company's financial position as of June 30, 1997 and
December 31, 1996, the results of operations for the three and six
months ended June 30, 1997 and 1996 and changes in cash flows for the
six months then ended. The accompanying financial statements do not
include information or footnotes necessary for a complete presentation
of financial condition, statements of income and cash flows in
conformity with generally accepted accounting principles. Certain
reclassifications have been made to the consolidated financial
statements for 1996 to conform to the 1997 presentation. The statements
of income for the three months and six months ended June 30, 1997 and
1996 are not necessarily indicative of the results which may be
expected for the entire year.
2. INVESTMENT SECURITIES HELD-TO-MATURITY
Investment securities held-to-maturity at June 30, 1997 and December
31, 1996 consisted of tax exempt obligations due in less than one year.
3. INVESTMENT SECURITIES HELD FOR TRADING
Investment securities held for trading at June 30, 1997 and December
31, 1996 consisted of an investment in a mutual fund.
The Company buys and sells equity securities that are classified as
trading securities. At each reporting period, the Company adjusts the
value of these securities to market value.
4. INVESTMENT SECURITIES AVAILABLE-FOR-SALE
Investment securities available-for-sale at June 30, 1997 and December
31, 1996 consisted of the following:
<TABLE>
<CAPTION>
June 30, 1997
-------------
Gross Gross Estimated
Amortized Unrealized Unrealized Market
Cost Gains Losses Value
---- ----- ------ -----
(in thousands)
<S> <C> <C> <C> <C>
U.S. Government Agencies
Due after one year through five years $17,449 $ 48 $(26) $17,471
Corporate Notes
Due in one year or less 636 10 --- 646
Due after one year through five years 2,984 23 --- 3,007
Preferred stock 2,552 61 --- 2,613
------- ---- ---- -------
Total $23,621 $142 $(26) $23,737
======= ==== ==== =======
</TABLE>
4
<PAGE>
<TABLE>
<CAPTION>
December 31, 1996
-----------------
Gross Gross Estimated
Amortized Unrealized Unrealized Market
Cost Gains Losses Value
---- ----- ------ -----
(in thousands)
<S> <C> <C> <C> <C>
U.S. Government Agencies
Due in one year through five years $17,976 $ 73 $(17) $18,032
Corporate Notes
Due in one year or less 725 2 --- 727
Due after one year through five years 2,972 37 --- 3,009
Due after five years through ten years 639 11 --- 650
Preferred stock 2,548 9 --- 2,557
------- ---- ---- -------
Total $24,860 $132 $(17) $24,975
======= ==== ==== =======
</TABLE>
5. MORTGAGE-BACKED SECURITIES
A summary of mortgage-backed securities at June 30, 1997 and December
31, 1996 consisted of the following:
<TABLE>
<CAPTION>
June 30, 1997
-------------
Gross Gross Estimated
Amortized Unrealized Unrealized Market
Cost Gains Losses Value
---- ----- ------ -----
(in thousands)
<S> <C> <C> <C> <C>
Mortgage-Backed Securities
Available-for-sale
FNMA pass-through certificates $ 1,732 $ 29 $ (5) $ 1,756
FHLMC pass-through certificates 3,305 215 --- 3,520
GNMA pass-through certificates 5,546 450 --- 5,996
Real estate mortgage investment
conduit obligations 80,381 347 (2,075) 78,653
------- ------ ------- -------
Total mortgage-backed securities
available-for-sale $90,964 $1,041 $(2,080) $89,925
======= ====== ======= =======
Mortgage-Backed Securities
Held to Maturity
Non-agency pass through certificates $ 5,813 $ 42 $ (4) $ 5,851
FNMA pass-through certificates 10,035 2 (32) 10,005
FHLMC pass-through certificates 9,552 25 (34) 9,543
Real estate mortgage investment
conduit obligations 86,576 1,074 (121) 87,529
------- ------ ------- -------
Total mortgage-backed securities
held to maturity $111,976 $1,143 $(191) $112,928
======== ====== ===== ========
</TABLE>
5
<PAGE>
<TABLE>
<CAPTION>
December 31,1996
----------------
Gross Gross Gross Estimated
Amortized Unrealized Unrealized Market
Cost Gains Losses Value
---- ----- ------ -----
(in thousands)
<S> <C> <C> <C> <C>
Mortgage-Backed Securities
Available-for-sale
FNMA pass-through certificates $ 1,863 $ 34 $ (2) $ 1,895
FHLMC pass-through certificates 4,342 237 --- 4,579
GNMA pass-through certificates 6,070 390 --- 6,460
Real estate mortgage investment
conduit obligations 80,416 277 (2,411) 78,282
------- ---- ------- -------
Total mortgage-backed securities
available-for-sale $92,691 $938 $(2,413) $91,216
======= ==== ======= =======
Mortgage-Backed Securities
Held to Maturity
Non-agency pass through certificates $ 6,143 $ 48 $ (7) $ 6,184
Real estate mortgage investment
conduit obligations 91,248 1,203 (217) 92,234
------- ---- ------- -------
Total mortgage-backed securities
held to maturity $97,391 $1,251 $(224) $98,418
======= ====== ===== =======
</TABLE>
Mortgage-backed securities with amortized costs of $75,613,000 and
$66,690,000 and market values of approximately $74,625,000 and
$66,990,000 were pledged as collateral for securities sold under
agreements to repurchase at June 30, 1997 and December 31, 1996,
respectively.
6. LOANS RECEIVABLE
Loans receivable at June 30, 1997 and December 31, 1996 consisted of
the following:
<TABLE>
<CAPTION>
June 30, December 31,
1997 1996
---- ----
(in thousands)
<S> <C> <C>
Residential mortgages on existing property $211,572 $203,574
Residential construction mortgages 3,108 3,824
Commercial real estate loans 18,305 17,214
Commercial business loans 2,033 1,948
Consumer loans:
Home equity loans 22,825 19,479
Mobile home loans 6,177 6,606
Equity lines of credit 4,092 3,993
Automobile loans 4,830 4,631
Other loans 3,795 3,747
-------- --------
Total 276,737 265,016
Undisbursed portion of loans in process (1,184) (1,222)
Net deferred loan fees, discounts and premiums (1,828) (1,800)
Allowance for possible credit losses (3,797) (3,760)
-------- --------
Total $269,928 $258,234
======== ========
</TABLE>
The total amount of loans serviced for the benefit of others was approximately
$65,400,000 and $64,900,000 at June 30, 1997 and December 31, 1996,
respectively.
6
<PAGE>
Following is a summary of changes in allowance for possible credit
losses:
<TABLE>
<CAPTION>
Six Months Twelve Months
Ended Ended
June 30, December 31,
1997 1996
---- ----
(in thousands)
<S> <C> <C>
Balance, beginning of period $3,760 $3,562
Provision for credit losses 200 400
Charge-offs (232) (358)
Recoveries 69 156
------ ------
Total $3,797 $3,760
====== ======
</TABLE>
7. LOANS HELD FOR SALE
Loans held for sale consist of 30 year fixed-rate residential mortgage
loans which qualify for sale in the secondary market. These loans are
recorded at the lower of cost or market value determined on an
aggregate basis.
8. REAL ESTATE OWNED AND OTHER REPOSSESSED ASSETS
Real estate owned and other repossessed assets at June 30, 1997 and
December 31, 1996 consisted of the following:
<TABLE>
<CAPTION>
June 30, December 31,
1997 1996
---- ----
(in thousands)
<S> <C> <C>
Real estate owned $704 $941
Other repossessed assets --- 7
----- -----
Total $704 $948
==== ====
</TABLE>
9. OFFICE PROPERTIES AND EQUIPMENT
Office properties and equipment at June 30, 1997 and December 31, 1996
are summarized by major classifications as follows:
<TABLE>
<CAPTION>
June 30, December 31,
1997 1996
---- ----
(in thousands)
<S> <C> <C>
Land, buildings and improvements $3,698 $3,689
Furniture and equipment 1,532 1,437
------ ------
Total 5,230 5,126
Less accumulated depreciation (2,318) (2,127)
------ ------
Total $2,912 $2,999
====== ======
</TABLE>
<PAGE>
10. DEPOSITS
Deposits at June 30, 1997 and December 31, 1996 consisted of the
following:
<TABLE>
<CAPTION>
June 30, December 31,
1997 1996
---- ----
(in thousands)
<S> <C> <C>
NOW accounts $27,100 $26,477
Non-interest bearing accounts 7,762 7,594
Money market and other accounts 60,036 51,408
Savings and club accounts 34,300 34,541
Time deposits 179,516 169,899
-------- -------
Total 308,714 289,919
Accrued interest payable 325 379
-------- -------
Total $309,039 $290,298
======== ========
</TABLE>
7
<PAGE>
The Bank pledged mortgage loans and mortgage-backed securities
aggregating approximately $6,211,000 for public fund deposits as
required by the New Jersey Department of Banking's Governmental Unit
Deposit Protection Act.
11. BORROWINGS FROM FEDERAL HOME LOAN BANK
Federal Home Loan Bank borrowings due at various dates through 2002
with interest rates from 5.08% to 7.52% at June 30, 1997 totaled
$131,102,000 and from 5.08% to 7.52% at December 31, 1996 totaled
$136,622,000. The borrowings from the Federal Home Loan Bank are
collateralized by Federal Home Loan Bank stock and substantially all
first mortgage loans.
Borrowings from the Federal Home Loan Bank at June 30, 1997 and
December 31, 1996 include securities sold under agreements to
repurchase of $26,268,000 and $27,297,000, respectively. At June 30,
1997, $14,268,000 are due within thirty days and $12,000,000 is due in
two years. The agreements at December 31, 1996 were all due within
thirty days. The weighted average interest rates at June 30, 1997 and
December 31, 1996 were 5.92% and 5.61%, respectively. Securities sold
under agreement to repurchase were collateralized by mortgage-backed
securities with amortized costs of $28,745,000 and $28,935,000 and
market values of approximately $28,530,000 and $28,816,000 at June 30,
1997 and December 31, 1996, respectively.
12. OTHER BORROWED FUNDS
Other borrowed funds at June 30, 1997 and December 31, 1996 consisted
of securities sold under agreements to repurchase. At June 30, 1997 and
December 31, 1996, $25,130,000 and $16,526,000 of these agreements were
due within thirty days and $20,000,000 was due November 1998 for both
periods. The weighted average interest rate was 5.79% and 5.73% at June
30, 1997 and December 31, 1996, respectively. Such agreements are
treated as financings and the obligations to repurchase securities sold
are reflected as a liability in the statements of financial condition.
Securities sold under agreement to repurchase were collateralized by
mortgage-backed securities and U.S. Government Agencies with amortized
costs of $46,868,000 and $37,755,000 and market values of approximately
$46,095,000 and $38,174,000 at June 30, 1997 and December 31, 1996,
respectively. The securities underlying the agreements were delivered
to, and are held by, the dealers who arranged the transactions.
13. COMMITMENTS AND CONTINGENCIES
Commitments at June 30, 1997 and December 31, 1996 consisted of the
following:
<TABLE>
<CAPTION>
June 30, December 31,
1997 1996
---- ----
(in thousands)
<S> <C> <C>
Fixed rate mortgage loans (current market rates) $ 1,863 $ 2,310
Adjustable rate mortgage loans 990 1,107
Purchase of fixed rate mortgage loans --- 7,189
Unused lines of credit 5,608 5,421
Letters of credit 584 574
Consumer loans 2,046 564
Loans in process 1,184 1,222
------- -------
Total $12,275 $18,387
======= =======
</TABLE>
At June 30, 1997 all commitments are expected to be funded within one
year.
14. DERIVATIVES DISCLOSURE
The Security and Exchange Commission issued release 33-7386 dated
January 31, 1997 governing disclosure requirements for financial
instruments, including derivatives. The rule requires; (1) a detailed
description of the accounting policies used for derivatives (when
material) and (2) qualitative and
8
<PAGE>
quantitative disclosures that can be used to assess the magnitude of
market risk. The accounting policies disclosure is effective for
reports filed for quarters ending on or after June 15, 1997. The
qualitative and quantitative disclosures are effective for filings that
include annual financial statements for fiscal year ends ending on or
after June 15, 1997 if the registrant is a bank or thrift.
The use of derivatives was immaterial at June 30, 1997 and the six
month period then ended.
9
<PAGE>
FIRST HOME BANCORP INC.
Item 2.
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
General
The Company is the sole stockholder of the Bank. Substantially all of
the Company's consolidated revenues are derived from the operations of the Bank,
and the Bank represented substantially all of the Company's consolidated assets
and liabilities at June 30 1997. The Bank's business is that of a financial
intermediary and consists primarily of attracting deposits from the general
public and using such deposits, together with borrowings and other funds, to
make mortgage loans secured by residential real estate primarily located in New
Jersey and Delaware. The Bank provides consumer banking services through eight
retail banking offices in New Jersey and two retail banking offices in Delaware.
The Bank is subject to significant competition from other financial
institutions, and is also subject to regulation by the Office of Thrift
Supervision (OTS) and the Federal Deposit Insurance Corporation and undergoes
periodic examinations by these regulatory agencies.
Net Income
The Company earned $1,122,000 and $2,420,000 or $.41 and $.89 per share
for the three and six month periods ended June 30, 1997 compared to $1,110,000
and $2,275,000 or $.41 and $.84 per share for the three and six month periods
ended June 30, 1996, respectively. Net income increased $12,000, or 1.1%, for
the three month period and increased $145,000, or 6.4%, for the six month period
ended June 30, 1997 as compared to the same periods in 1996.
Net Interest Income
Net interest income for the three and six month periods ended June 30,
1997 totaled $3,804,000 and $7,632,000 compared to $3,774,000 and $7,507,000 for
the three and six month periods ended June 30, 1996, a $30,000 and $125,000, or
.8% and 1.7% increase for the three and six month periods, respectively. The
increases in net interest income for the three and six month periods ended June
30, 1997 were attributable to growth in net interest-earning assets but were
offset by declines in net interest margin. Net interest-earning assets increased
$2,702,000 for the three month period but net interest margin declined to 3.06%
from 3.30%. Net interest-earning assets increased $1,864,000 for the six month
period but net interest margin declined to 3.11% from 3.34%. Average
interest-earning assets increased by $40,437,000 and $42,191,000 for the three
and six month periods ended June 30, 1997, respectively, as compared to the
prior year. Average interest-bearing liabilities increased by $37,735,000 and
$40,327,000 for the three and six month periods ended June 30, 1997,
respectively, as compared to the prior year. The increase in interest-earning
assets was primarily attributable to the purchase of mortgaged-backed securities
which increased by $32,780,000 and $34,008,000 for the three and six month
periods ended June 30, 1997, respectively, as compared to the prior year. The
increases in interest-bearing liabilities were attributable to increases in
deposits of $18,576,000 and $21,832,000 and borrowings of $19,159,000 and
$18,495,000 for the three and six month periods ended June 30, 1997,
respectively, as compared to the prior year.
The following table sets forth information for the three and six month
periods ended June 30, 1997 and June 30, 1996 regarding the Company's (1)
average balance of interest-earning assets and the resultant interest income and
average yields; (2) average balance of interest-bearing liabilities and the
resultant interest expense and average costs; (3) net interest income; (4)
interest rate spread; (5) and net yield earned on weighted average
interest-earning assets. The table is not presented on a tax equivalent basis
because the Company's investment in tax-free obligations is insignificant.
10
<PAGE>
<TABLE>
<CAPTION>
Three Months Ended
June 30, 1997 June 30, 1996
------------- -------------
(dollars in thousands)
Average Average
Average Yield/ Average Yield/
Balance Interest Rate Balance Interest Rate
------- -------- ---- ------- -------- ----
<S> <C> <C> <C> <C> <C> <C>
Interest-earning assets:
Loans $263,335 $5,527 8.40% $254,963 $5,389 8.45%
Mortgage-backed securities 201,068 3,601 7.16 168,288 3,071 7.30
Other (1) 33,186 569 6.86 33,901 569 6.71
-------- ------ ---- -------- ------ ----
Total interest-earning assets 497,589 9,697 7.80 457,152 9,029 7.90
-------- ------ ---- -------- ------ ----
Non-interest earning assets 13,192 12,819
-------- --------
Total assets $510,781 $469,971
======== ========
Interest bearing liabilities:
Deposits $299,195 3,309 4.42 $280,619 3,051 4.35
Borrowings 176,143 2,584 5.87 156,984 2,204 5.62
-------- ------ ---- -------- ------ ----
Total interest-bearing liabilities 475,338 5,893 4.96 437,603 5,255 4.80
-------- ------ ---- -------- ------ ----
Non-interest-bearing liabilities 1,503 1,448
------ ------
Total liabilities 476,841 439,051
-------- --------
Shareholders' equity 33,940 30,920
-------- --------
Total liabilities and shareholders' equity $510,781 $469,971
======== ========
Net interest income $3,804 $3,774
====== ======
Interest rate spread 2.84% 3.10%
==== ====
Net yield on weighted average
interest-earning assets 3.06% 3.30%
==== ====
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Six Months Ended
June 30, 1997 June 30, 1996
------------- -------------
(dollars in thousands)
Average Average
Average Yield/ Average Yield/
Balance Interest Rate Balance Interest Rate
------- -------- ---- ------- -------- ----
<S> <C> <C> <C> <C> <C> <C>
Interest-earning assets:
Loans $262,602 $11,001 8.38% $254,374 $10,769 8.47%
Mortgage-backed securities 194,780 6,994 7.18 160,772 5,935 7.38
Other (1) 33,753 1,143 6.77 33,798 1,158 6.85
-------- ------ ---- -------- ------ ----
Total interest-earning assets 491,135 19,138 7.79 448,944 17,862 7.96
-------- ------ ---- -------- ------ ----
Non-interest earning assets 13,415 12,514
-------- --------
Total assets $504,550 $461,458
======== ========
Interest bearing liabilities:
Deposits $297,548 6,549 4.40 $275,716 6,010 4.36
Borrowings 171,753 4,957 5.77 153,258 4,345 5.67
-------- ------ ---- -------- ------ ----
Total interest-bearing liabilities 469,301 11,506 4.90 428,974 10,355 4.83
-------- ------ ---- -------- ------ ----
Non-interest-bearing liabilities 1,704 1,770
-------- --------
Total liabilities 471,005 430,744
-------- --------
Shareholders' equity 33,545 30,714
-------- --------
Total liabilities and shareholders' equity $504,550 $461,458
======== ========
Net interest income $7,632 $7,507
====== ======
Interest rate spread 2.89% 3.13%
==== ====
Net yield on weighted average
interest-earning assets 3.11% 3.34%
==== ====
</TABLE>
(1) Consists of interest-earning deposits, short-term funds, investment
securities, and Federal Home Loan Bank stock.
11
<PAGE>
Provision for Credit Losses
The provision for credit losses were $100,000 and $200,000 for the three
and six month periods ended June, 1997 and 1996, respectively. As of June 30,
1997, the allowance for credit losses totaled $3,797,000 or 1.39% of total
loans, including loans held for sale, compared to $3,664,000 or 1.41% of total
loans, including loans held-for-sale at June 30, 1996.
Other Income
Other income increased by $9,000 and $57,000 for the three and six
months ended June 30, 1997 from the comparable periods of 1996. The increase for
the three and six month periods ended June 30, 1997 were attributable to
increases in miscellaneous income of $61,000 and $53,000 for the three and six
month periods ended June 30, 1997, respectively, compared to the comparable
periods in the prior year. In addition, net profits relating to the sale of
investment securities held for trading and loans held for sale increased to
$41,000 and $98,000 for the three and six months ended June 30, 1997,
respectively, from $16,000 and $29,000 during the comparable period in the prior
year. These increases for the three and six month periods were offset by
decreases in the accretion of excess of fair value over cost of $58,000 for both
periods of 1997 compared to the same periods of 1996.
Operating Expenses
General and Administrative Expense - General and administrative expense
increased $113,000 and $149,000 or 5.2% and 3.6% for the three and six month
periods ended June 30, 1997, respectively, from the comparable periods of 1996.
The increase in general and administrative expense for the six month period
ended June 30, 1997 was attributable to increases of $208,000 for the three
month period ended June 30, 1997 and $315,000 for the six month period ended
June 30, 1997 associated with branch operations (marketing, training and
improvements in technology) and additional costs of operating the holding
company. These increases were offset by decreases of $99,000 and $192,000 in the
federal insurance premium for the three and six month periods ended June 30,
1997, respectively, compared to the three and six month periods ended June 30,
1996.
Amortization of Deposit Premium - In January 1995, the Bank acquired two branch
offices with deposits of approximately $15,900,000. The premium paid for these
deposits is amortized over a period not exceeding the estimated average
remaining life of the customer base acquired.
Income Tax Expense
Income tax expense decreased $21,000 and $18,000 for the three and six
month periods ended June 30, 1997, respectively, as compared to the same periods
in 1996. Pre-tax income decreased $9,000 from the comparable three month period
of 1996 and increased $127,000 from the comparable six month period of 1996. The
tax expense decreased because no valuation allowances on deferred tax assets
were provided during the periods ended June 30, 1997 while there were valuation
allowances provided during the periods ended June 30, 1996.
Financial Condition
Total assets increased to $522,396,000 as of June 30, 1997 from
$498,399,000 on December 31, 1996, an increase of 9.6% on an annualized basis.
This increase was attributable to an increase in mortgage-backed securities and
loans receivable. From December 31, 1996 to June 30, 1997 mortgage-backed
securities and loans receivable increased by $13,294,000 and $11,399,000,
respectively.
Total liabilities increased to $487,594,000 as of June 30, 1997 from
$465,754,000 on December 31, 1996, an increase of 9.4% on an annualized basis.
Deposits increased to $309,039,000 as of June 30, 1997 from $290,298,000 on
December 31, 1996. This increase was primarily due to increases in time deposits
and money market and other accounts. From December 31, 1996 to June 30, 1997,
time deposits increased by $9,617,000 while money market and other accounts
increased by $8,628,000. These increases were used to fund the increase in
mortgage-backed securities and loans receivable.
12
<PAGE>
Shareholders' equity increased to $34,802,000 as of June 30, 1997 from
$32,645,000 on December 31, 1996. This increase was primarily the result of net
income of $2,420,000 for the six months ended June 30, 1997, less $542,000 paid
during the six month period with respect to cash dividends and cash paid in lieu
of fractional shares associated with the four-for-three stock split declared on
January 7, 1997. In addition, investments classified as available-for-sale in
accordance with the Financial Accounting Standards Board (FASB) Statement No.
115 "Accounting for Certain Investments in Debt and Equity Securities" are
required to be marked to market on an after-tax basis and unrealized gains or
losses reflected as an adjustment to shareholders' equity. The Company had
unrealized losses of $870,000 on December 31, 1996 and unrealized losses of
$590,000 on June 30, 1997 or a net decrease in unrealized losses of $280,000.
Asset Quality
The Company's non-performing assets consist of non-accrual loans, real
estate owned and repossessed assets. The following table sets forth information
regarding non-performing assets.
June 30, December 31,
1997 1996
---- ----
(in thousands)
Non-accrual loans
Residential loans $1,785 $2,316
Commercial loans 550 592
Consumer loans 285 305
------ ------
Total non-accrual loans 2,620 3,213
Real estate owned 704 941
Other repossessed assets --- 7
------ ------
Total non-performing assets $3,324 $4,161
====== ======
Total non-performing assets as a percent of total assets .64% .83%
=== ===
The Company's level of non-performing assets is affected by adverse
situations that may affect a borrower's ability to repay and other conditions
beyond the Company's control. The Company's management monitors the quality of
assets on a regular basis.
Liquidity and Committed Resources
Liquidity is maintained at a sufficient level to generate cash to fund
current loan demand and pay operating expenses. Sources of funds are obtained
from increases in loan principal repayments, deposits, sales of loans and
investments, increases in borrowed money and from operations. While loan
principal repayments are a relatively stable source of funds, deposit flows are
greatly influenced by general interest rates, economic conditions and
competition. As a member of the Federal Home Loan Bank (FHLB) system, the
Company may borrow from the FHLB of New York. The Company may also utilize
reverse repurchase agreements collateralized by mortgage-backed securities or
other securities. Management believes that the Company has sufficient borrowing
capacity to compensate for reductions in other sources of funds such as
deposits.
The Company had 6.61% of its assets qualifying for liquidity under
applicable federal regulations as of June 30, 1997. The overall liquidity
percentage requirement is currently 5% on an average monthly basis.
At June 30, 1997, the Company had approximately $12,275,000 in
outstanding commitments. It is anticipated that these commitments will fund
within the next year and funds will be available from normal cash flows.
13
<PAGE>
Interest Rate Risk Management
The Company has a program to control its interest rate risk. The
strategy includes an emphasis on originating adjustable rate mortgage (ARM)
loans, the purchase of adjustable rate and short-term mortgage-backed securities
(MBS) and the origination of short-term consumer loans. The Board of Directors
has instructed management to maintain interest rate risk within prescribed
limits. An internal asset/liability modeling system monitors the effect on
income of changing market interest rates.
The difference between the amount of interest-earning assets maturing or
repricing within a specific time period and the amount of interest-bearing
liabilities maturing or repricing within that time period (gap) is also
monitored. A gap is considered positive when the amount of interest rate
sensitive assets exceeds the amount of interest rate sensitive liabilities. When
interest rate sensitive liabilities exceed interest rate sensitive assets, the
gap is considered negative. However, because all interest rates and yields do
not adjust at the same velocity, the gap is only a general indicator of interest
rate sensitivity.
During a period of rising interest rates, a negative gap tends to
adversely affect net interest income while a positive gap tends to increase net
interest income. During a period of declining interest rates, a negative gap
tends to increase net interest income while a positive gap tends to adversely
affect net interest income.
The Company's net interest income tends to increase in periods of
declining interest rates because its interest-bearing liabilities generally
reprice faster than its interest-earning assets. The Company's net interest
income tends to decrease in periods of rising interest rates. Therefore, rising
interest rates, particularly when combined with a flattening yield curve, could
have a negative impact on net interest income in future periods.
The following table summarizes the amounts of interest-earning assets
and interest-bearing liabilities outstanding as of June 30, 1997 which are
anticipated to mature, prepay or reprice in each of the future time periods
shown. Adjustable and floating rate assets are included in the period in which
interest rates are next scheduled to adjust rather than in the period in which
they are due. Loans and mortgage-backed securities are included in the periods
in which they are anticipated to be repaid, based on internal assumptions.
Non-performing loans have been excluded from interest-earning assets. Money
market deposit accounts (MMDA) and other accounts, NOW and savings accounts
which are subject to immediate withdrawal and repricing are classified at decay
rates based upon assumptions provided by the OTS.
14
<PAGE>
<TABLE>
<CAPTION>
Twelve
Months 1-3 3-5 5-10 10-20 Over 20
or less Years Years Years Years Years Total
------- ----- ----- ----- ----- ----- -----
(dollars in thousands)
<S> <C> <C> <C> <C> <C> <C> <C>
Interest-earning assets:
Residential mortgage loans
Adjustable rate $54,727 $21,348 $ 514 $ --- $ --- $ --- $ 76,589
Fixed rate 26,993 39,262 26,186 31,267 11,129 210 135,047
Mortgage-backed securities
Adjustable rate 97,492 16,565 --- --- --- --- 114,057
Fixed rate 15,440 23,516 16,264 22,603 12,053 1,083 90,959
Consumer and commercial loans
Adjustable rate 10,045 2,151 338 --- --- --- 12,534
Fixed rate 20,392 17,931 6,387 3,588 465 --- 48,763
Loans held for sale 381 --- --- --- --- --- 381
Investment securities 7,567 2,000 16,105 --- --- 9,928 35,600
Investment securities held-for-trading 62 --- --- --- --- --- 62
------- ------- ------ ------ ------ ------ -------
Total 233,099 122,773 65,794 57,458 23,647 11,221 513,992
------- ------- ------ ------ ------ ------ -------
Interest-bearing liabilities:
Deposits
Savings accounts 4,802 7,681 5,681 8,545 5,911 1,680 34,300
NOW and non-interest
bearing demand accounts 5,927 9,002 6,201 8,323 4,570 839 34,862
Money market accounts 18,611 21,702 10,333 7,921 1,433 36 60,036
Certificates of deposit 127,262 44,388 7,866 --- --- --- 179,516
Borrowings 109,793 61,582 4,857 --- --- --- 176,232
------- ------- ------ ------ ------ ------ -------
Total 266,395 144,355 34,938 24,789 11,914 2,555 484,946
------- ------- ------ ------ ------ ------ -------
Excess int.-earning assets (liabilities) $(33,296) $(21,582) $ 30,856 $32,669 $11,733 $ 8,666 $ 29,046
======== ======== ======== ======= ======= ======= ========
Cumulative excess interest-earning
assets (liabilities) $(33,296) $(54,878) $(24,022) $ 8,647 $20,380 $29,046
======== ======== ======== ======= ======= =======
Ratio of GAP during the period
to total assets (6.37)% (4.14)% 5.91% 6.25% 2.25% 1.66%
===== ====== ==== ==== ==== ====
Ratio of cumulative GAP
to total assets (6.37)% (10.51)% (4.60)% 1.65% 3.90% 5.56%
===== ====== ===== ==== ==== ====
</TABLE>
Capital
The Bank is in full compliance with its capital requirements. Management
believes that, under current regulations, the Bank will continue to meet its
minimum capital requirements in the foreseeable future. The table below presents
the Bank's actual and regulatory required capital amounts for core, tangible,
tier 1 risk-based and total risk-based capital at June 30, 1997.
<TABLE>
<CAPTION>
Required to be
Required for Well Capitalized
Capital Adequacy Under Prompt
Actual Purposes Corrective Action
------------------- --------------------- --------------------
Amount Percentage Amount Percentage Amount Percentage
------------------- --------------------- --------------------
(dollars in thousands)
<S> <C> <C> <C> <C> <C> <C>
Core (Leverage) $33,719 6.46% $15,653 3.0% $26,089 5.0%
Tangible 33,719 6.46 7,827 1.5 N/A N/A
Tier I risk-based 33,719 15.77 8,550 4.0 12,825 6.0
Total risk-based 36,329 17.00 17,101 8.0 21,376 10.0
</TABLE>
15
<PAGE>
Recent Accounting Pronouncements
In February 1997, the FASB issued Statement No. 128, "Earnings Per
Share" effective for fiscal years ending on or after December 15, 1997. This
statement establishes new standards for computing and presenting earnings per
share and makes the earnings per share comparable to international standards.
Early application is not permitted and the Statement requires restatement of all
prior period Earnings Per Share (EPS) data presented after its effective date.
The EPS as currently reported is the same as the Basic EPS required by the
Statement. The newly required Diluted EPS is not expected to be materially
different than the Basic EPS.
Also, in March 1997, the FASB issued Statement No. 129, "Disclosure of
Information about Capital Structure." This statement did not change the
currently reported disclosures.
In June 1997, the FASB issued Statement No. 130, "Reporting
Comprehensive Income." This statement establishes standards for reporting and
displaying of comprehensive income and its components (revenues, expenses, gains
and losses) in a full set of general purpose financial statements. This
statement is effective for fiscal years beginning after December 15, 1997.
Reclassification of financial statements for earlier periods provided for
comparative purposes is required.
<TABLE>
<CAPTION>
Selected Financial and Other Data
- -------------------------------------------------------------------------------------------------------------------
Three Months Ended Six Months Ended
June 30, June 30, June 30, June 30,
1997 1996 1997 1996
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Interest rate spread 2.84% 3.10% 2.89% 3.13%
Net yield on interest-earning assets 3.06% 3.30% 3.11% 3.34%
Return on average assets .88% .94% .96% .99%
Return on average equity 13.22% 14.36% 14.43% 14.81%
General and administrative
expenses to average assets 1.77% 1.83% 1.72% 1.82%
Ratio of interest-earning assets to
interest-bearing liabilities 1.05x 1.04x 1.05x 1.05x
Ratio of non-performing assets
to total assets at end of period --- --- .64% .91%
Dividends per common share $.10 $.09 $.20 $.18
Book value per share
at end of period --- --- $12.85 $11.39
</TABLE>
16
<PAGE>
FIRST HOME BANCORP INC.
AND SUBSIDIARY
Part II: Other Information
Item 4: Submission of matters to a vote of security-holders.
The Company held its Annual Meeting of Shareholders on April 25,
1997. Of the 2,708,426 shares eligible to vote, 2,324,418 shares
or 85.82% were represented in person or by proxy at the meeting.
The vote cast produced the following result:
Election of Directors for two Number of Votes
Class A Directors ---------------
for a three year term expiring in 2000 For Withheld
-------------------------------------- --- --------
Rodger D. Shay 2,313,828 10,590
Stephen R. Selverian 2,322,021 2,397
Item 6: Exhibits and Other Reports on Form 8-K
<TABLE>
<CAPTION>
<S> <C>
(a) The following exhibits are filed as part of this Report on Form 10-Q.
Exhibit 3.1 (1) Certificate of Incorporation.
Exhibit 3.2 (1) By-laws.
Exhibit 10.1 (1) Employee Stock Compensation Program.
Exhibit 10.2 (1) 1996 Employee Stock Option Plan.
Exhibit 10.3 (1) 1994 Stock Option Plan for Non-Employee Directors.
Exhibit 10.4 (1) Employment Agreement between First Home Savings Bank, F.S.B. and
Stephen D. Miller, as amended.
Exhibit 10.5 (1) Employment Agreement between First Home Savings Bank, F.S.B. and Robert
A. DiValerio, as amended.
Exhibit 10.6 (1) Employment Agreement between First Home Savings Bank, F.S.B. and Duff
P. O'Connor, as amended.
Exhibit 10.7 (1) Employment Agreement between First Home Savings Bank, F.S.B. and
Stephen R. Selverian, as amended.
Exhibit 11 - Statement regarding computation of earnings per share
Exhibit 27 - Financial Data Schedule
(b) No reports on Form 8-K were filed during the quarter for which
this report is filed.
</TABLE>
(1) Incorporated as an Exhibit to this Report by reference to Annual Report on
Form 10-K for the year ended December 31, 1996.
17
<PAGE>
FIRST HOME BANCORP INC.
AND SUBSIDIARY
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.
FIRST HOME BANCORP INC.
(Registrant)
Date: August 13, 1997 /s/ Stephen D. Miller
-----------------------------------
Stephen D. Miller
President/Chief Executive Officer
Date: August 13, 1997 /s/Robert A. DiValerio
-----------------------------------
Robert A. DiValerio
Senior Executive Vice-President/
Chief Financial Officer
18
<PAGE>
EXHIBIT (11)
FIRST HOME BANCORP INC. AND SUBSIDIARY
COMPUTATION OF EARNINGS PER SHARE OF COMMON STOCK
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
June 30 June 30 June 30 June 30
1997 1996 1997 1996
---- ---- ---- ----
<S> <C> <C> <C> <C>
PRIMARY
EARNINGS:
Net income $1,121,977 $1,109,917 $2,420,019 $2,274,877
========== ========== ========== ==========
SHARES:
Weighted average number of
common shares outstanding 2,708,426 2,706,679 2,708,426 2,706,679
Assuming exercise of options
reduced by the number of shares
which could have been purchased
with the proceeds from exercise
of such options (1) 43,676 17,981 39,993 17,740
---------- ---------- ---------- ----------
Weighted average number of common
shares outstanding as adjusted 2,752,102 2,724,660 2,748,419 2,724,419
========== ========== ========== ==========
Primary earnings per share of
common stock $.41 $.41 $.88 $.83
==== ==== ==== ====
ASSUMING FULL DILUTION
EARNINGS:
Net income $1,121,977 $1,109,917 $2,420,019 $2,274,877
========== ========== ========== ==========
SHARES:
Weighted average number of
common shares outstanding 2,708,426 2,706,679 2,708,426 2,706,679
Assuming exercise of options
reduced by the number of shares
which could have been purchased
with the proceeds from exercise
of such options (2) 46,290 17,981 46,290 17,740
---------- ---------- ---------- ----------
Weighted average number of common
shares outstanding as adjusted 2,754,716 2,724,660 2,754,716 2,724,419
========== ========== ========== ==========
Fully diluted earnings per share of
common stock $.41 $.41 $.88 $.83
==== ==== ==== ====
</TABLE>
(1) Assumes the proceeds obtained from the exercise of options were used to
purchase common shares at the average market price during the quarter.
(2) Assumes the proceeds obtained from the exercise of stock options were used
to purchase common shares at the market price at the close of the quarter
if such price was higher than the average price during the quarter.
<TABLE> <S> <C>
<ARTICLE> 9
<LEGEND>
The schedule contains summary financial information extracted from the
statements of consolidated financial condition as of June 30, 1997 and the
consolidated statements of income for the six months ended June 30, 1997 and is
qualified in its entirety by reference to such financial statements.
</LEGEND>
<CIK> 0001009195
<NAME> FIRST HOME BANCORP, INC.
<MULTIPLIER> 1,000
<CURRENCY> US DOLLARS
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-1-1997
<PERIOD-END> JUN-30-1997
<EXCHANGE-RATE> 1
<CASH> 5,439
<INT-BEARING-DEPOSITS> 912
<FED-FUNDS-SOLD> 0
<TRADING-ASSETS> 62
<INVESTMENTS-HELD-FOR-SALE> 113,662
<INVESTMENTS-CARRYING> 115,631
<INVESTMENTS-MARKET> 116,584
<LOANS> 270,309
<ALLOWANCE> 3,797
<TOTAL-ASSETS> 522,396
<DEPOSITS> 309,039
<SHORT-TERM> 109,793
<LIABILITIES-OTHER> 2,323
<LONG-TERM> 66,439
0
0
<COMMON> 0
<OTHER-SE> 34,802
<TOTAL-LIABILITIES-AND-EQUITY> 522,396
<INTEREST-LOAN> 11,001
<INTEREST-INVEST> 8,137
<INTEREST-OTHER> 0
<INTEREST-TOTAL> 19,138
<INTEREST-DEPOSIT> 6,549
<INTEREST-EXPENSE> 11,506
<INTEREST-INCOME-NET> 7,632
<LOAN-LOSSES> 200
<SECURITIES-GAINS> 98
<EXPENSE-OTHER> 4,460
<INCOME-PRETAX> 3,657
<INCOME-PRE-EXTRAORDINARY> 3,657
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 2,420
<EPS-PRIMARY> .88
<EPS-DILUTED> .88
<YIELD-ACTUAL> 7.79
<LOANS-NON> 2,620
<LOANS-PAST> 0
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 3,760
<CHARGE-OFFS> 232
<RECOVERIES> 69
<ALLOWANCE-CLOSE> 3,797
<ALLOWANCE-DOMESTIC> 3,797
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
