<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 September 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 November 12, 1997.
<PAGE>
FIRST HOME BANCORP INC.
AND SUBSIDIARY
INDEX
<TABLE>
<CAPTION>
Page
Number
--------
<S> <C> <C>
Part I Financial Information:
Item 1: Financial Statements:
Consolidated Statements of Financial Condition -
September 30, 1997 and December 31, 1996 (unaudited) 1
Consolidated Statements of Income -
Three and Nine Months Ended September 30, 1997
and 1996 (unaudited) 2
Consolidated Statements of Cash Flows -
Nine Months Ended September 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 19
</TABLE>
<PAGE>
Part I
Item 1.
FIRST HOME BANCORP INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
<TABLE>
<CAPTION>
September 30, December 31,
1997 1996
------------- ------------
(Unaudited)
(in thousands)
<S> <C> <C>
ASSETS
Cash and amounts due from depository institutions $ 4,722 $ 5,133
Interest-earning deposits and short-term funds 988 1,302
Investment securities held-to-maturity (market value -
1997 - $3,630; 1996 - $2,321) 3,630 2,321
Investment securities held for trading at market value 592 60
Investment securities available-for-sale at market value 20,037 24,975
Mortgage-backed securities held-to-maturity
(market value - 1997 - $113,030; 1996 - $98,418) 111,400 97,391
Mortgage-backed securities available-for-sale at market value 88,841 91,216
Loans receivable - net 278,240 258,234
Loans held for sale at market value 408 676
Accrued interest receivable 3,084 3,013
Real estate owned and other repossessed assets 880 948
Federal Home Loan Bank stock-at cost 7,376 7,376
Office properties and equipment 2,892 2,999
Deposit premium 545 631
Net deferred income taxes 965 1,347
Prepaid expenses and other assets 492 777
--------- ---------
TOTAL ASSETS $525,092 $498,399
======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Deposits $323,607 $290,298
Borrowings from the Federal Home Loan Bank 128,402 136,622
Other borrowed funds 34,830 36,526
Advances by borrowers for taxes and insurance 378 445
Accrued interest payable on advances 523 588
Excess of fair value over cost --- 66
Accounts payable and accrued expenses 1,313 1,209
--------- ---------
Total liabilities 489,053 465,754
--------- ---------
Commitments and Contingencies (Note 14)
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 September 30, 1997 and
December 31, 1996 --- ---
Paid-in capital in excess of par 8,923 8,923
Retained earnings - partially restricted 27,351 24,592
Unrealized loss on securities available-for-sale (235) (870)
--------- ---------
Total shareholders' equity 36,039 32,645
--------- ---------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $525,092 $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 Nine Months Ended
September 30, September 30, September 30, September 30,
1997 1996 1997 1996
---- ---- ---- ----
(Unaudited)
(in thousands, except per-share data)
<S> <C> <C> <C> <C>
INTEREST INCOME:
Interest and fees on loans $5,719 $5,482 $16,720 $16,251
Interest on mortgage-backed securities 3,533 3,164 10,527 9,099
Other interest income and dividends 565 548 1,708 1,706
--------- --------- --------- ---------
Total interest income 9,817 9,194 28,955 27,056
--------- --------- --------- ---------
INTEREST EXPENSE:
Interest on deposits 3,554 3,000 10,103 9,010
Interest on borrowed money 2,478 2,398 7,435 6,743
--------- --------- --------- ---------
Total interest expense 6,032 5,398 17,538 15,753
--------- --------- --------- ---------
NET INTEREST INCOME 3,785 3,796 11,417 11,303
PROVISION FOR CREDIT LOSSES 100 100 300 300
--------- --------- --------- ---------
NET INTEREST INCOME AFTER
PROVISION FOR CREDIT LOSSES 3,685 3,696 11,117 11,003
--------- --------- --------- ---------
OTHER INCOME:
Loan servicing fees 48 53 145 162
Service charges and other fees 139 133 433 422
Profit (loss) relating to:
Loans held for sale 11 5 18 (79)
Investment securities held for trading 34 71 125 184
Mortgage-backed securities available-for-sale --- 23 --- 23
Accretion of excess of fair value over cost --- 62 66 187
Other income 47 75 177 152
--------- --------- --------- ---------
Total other income 279 422 964 1,051
--------- --------- --------- ---------
OPERATING EXPENSES:
General and administrative expense:
Salaries and employee benefits 1,114 1,120 3,220 3,165
Occupancy and equipment 338 326 985 953
Marketing 130 142 385 300
Federal insurance premium 44 148 131 426
Other expenses 548 501 1,794 1,585
--------- --------- --------- ---------
Total general and administrative expenses 2,174 2,237 6,515 6,429
SAIF recapitalization assessment --- 1,564 --- 1,564
Amortization of deposit premium 29 64 86 193
Real estate operations, net 34 71 96 156
--------- --------- --------- ---------
Total operating expenses 2,237 3,936 6,697 8,342
--------- --------- --------- ---------
INCOME BEFORE INCOME TAXES 1,727 182 5,384 3,712
--------- --------- --------- ---------
INCOME TAX EXPENSE:
Income tax expense 575 50 1,812 1,305
Recovery of valuation allowance
on deferred tax asset --- (732) --- (732)
--------- --------- --------- ---------
Total income tax expense (recovery) 575 (682) 1,812 573
--------- --------- --------- ---------
NET INCOME $1,152 $ 864 $ 3,572 $ 3,139
========= ========= ========= =========
PER-SHARE DATA:
Net income $ .43 $ .32 $ 1.32 $ 1.16
========= ========= ========= =========
Cash dividends $ .10 $ .09 $ .30 $ .27
========= ========= ========= =========
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>
Nine Months Ended
September 30, September 30,
1997 1996
---- ----
(Unaudited)
(in thousands)
<S> <C> <C>
OPERATING ACTIVITIES:
Net Income $ 3,572 $ 3,139
Adjustments to reconcile net income to net
cash provided by operating activities:
Provision for losses 300 300
Depreciation 291 256
Accretion of excess fair value over cost (66) (187)
Amortization of fair market premiums --- 49
Amortization of deposit premium 86 193
Investment security gains (125) (184)
Purchase of investment securities held for trading (6,512) (6,717)
Proceeds from sale of investment securities held for trading 6,105 6,899
Gain from sale of mortgage-backed securities available for sale --- (23)
Loans originated for sale (4,630) (6,718)
Proceeds from loans sold 4,916 6,075
Net (gain) loss on sale of loans (18) 79
Increase in accrued interest receivable (71) (45)
Decrease (increase) in accrued interest payable (64) 60
Decrease (increase) in net deferred tax asset 25 (517)
Net other 388 (31)
-------- --------
Net cash provided by operating activities 4,197 2,628
-------- --------
INVESTMENT ACTIVITIES:
Proceeds from maturities of investment securities 12,933 14,061
Proceeds from sale of mortgage-backed securities available for sale --- 3,635
Purchase of investment securities (9,274) (10,733)
Purchase of mortgage-backed securities (25,019) (42,916)
Repayments on mortgage-backed securities 14,347 7,104
Purchase of FHLB stock --- (1,977)
Purchase of property and equipment (184) (732)
Decrease (increase) in real estate owned 68 (166)
Principal collected on longer term loans 39,413 42,636
Loans originated or acquired (59,719) (47,382)
-------- --------
Net cash used by investing activities (27,435) (36,470)
-------- --------
FINANCING ACTIVITIES:
Net increase in:
Demand deposits, NOW accounts, and savings accounts 15,141 1,425
Certificates of deposit 18,169 3,639
(Repayments) proceeds from other borrowings (1,696) 18,085
Proceeds from FHLB borrowings 9,000 15,100
Cash dividends and cash in lieu of fractional shares (813) (731)
Repayment of FHLB borrowings (17,221) (6,300)
Decrease in advance from borrowers for taxes and insurance (67) (17)
-------- --------
Net cash provided by financing activities 22,513 31,201
-------- --------
DECREASE IN CASH AND CASH EQUIVALENTS (725) (2,641)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 6,435 8,657
-------- --------
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 5,710 $ 6,016
======= =======
</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 September 30, 1997 and
December 31, 1996, the results of operations for the three and nine
months ended September 30, 1997 and 1996 and changes in cash flows for
the nine 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 nine months ended September 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 September 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 September 30, 1997 consisted
of an investment in common stock and a mutual fund. At December 31,
1996 investment securities held for trading consisted only of an
investment in a mutual fund.
The Company buys and sells certain equity securities that are
classified as held for trading. 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 September 30, 1997 and
December 31, 1996 consisted of the following:
<TABLE>
<CAPTION>
September 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 $12,455 $ 63 $ (7) $12,511
Corporate Notes
Due in one year or less 2,990 20 --- 3,010
Due after one year through five years 1,636 22 --- 1,658
Preferred stock 2,548 35 --- 2,583
Common stock 262 13 --- 275
------- ----- ----- --------
Total $19,891 $153 $ (7) $20,037
======= ==== ====== =======
</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
Preferred stock 639 11 --- 650
Common 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 September 30, 1997 and
December 31, 1996 consisted of the following:
<TABLE>
<CAPTION>
September 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 $ 1,615 $ 18 $ (6) $ 1,627
FHLMC pass-through certificates 3,147 216 --- 3,363
GNMA pass-through certificates 5,208 407 --- 5,615
Real estate mortgage investment
conduit obligations 79,384 530 (1,678) 78,236
-------- ------- -------- --------
Total mortgage-backed securities
available-for-sale $89,354 $1,171 $(1,684) $88,841
======= ====== ======= =======
Mortgage-Backed Securities
Held to Maturity
Non-agency pass through certificates $ 5,655 $ 43 $ (5) $ 5,693
FNMA pass-through certificates 9,842 141 --- 9,983
FHLMC pass-through certificates 9,101 106 --- 9,207
Real estate mortgage investment
conduit obligations 86,802 1,465 (120) 88,147
-------- ------- -------- --------
Total mortgage-backed securities
held to maturity $111,400 $1,755 $(125) $113,030
======== ====== ===== ========
</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 $63,593,000 and
$66,690,000 and market values of approximately $63,972,000 and
$66,990,000 were pledged as collateral for securities sold under
agreements to repurchase at September 30, 1997 and December 31, 1996,
respectively.
6. LOANS RECEIVABLE
Loans receivable at September 30, 1997 and December 31, 1996 consisted
of the following:
<TABLE>
<CAPTION>
September 30, December 31,
1997 1996
------- -------
(in thousands)
<S> <C> <C>
Residential mortgages on existing property $212,985 $203,574
Residential construction mortgages 3,663 3,824
Commercial real estate loans 18,505 17,214
Commercial business loans 2,282 1,948
Consumer loans:
Home equity loans 28,845 19,479
Mobile home loans 6,012 6,606
Equity lines of credit 4,197 3,993
Automobile loans 4,881 4,631
Other loans 4,152 3,747
-------- --------
Total 285,522 265,016
Undisbursed portion of loans in process (1,688) (1,222)
Net deferred loan fees, discounts and premiums (1,746) (1,800)
Allowance for possible credit losses (3,848) (3,760)
-------- --------
Total $278,240 $258,234
======== ========
</TABLE>
The total amount of loans serviced for the benefit of others was
approximately $64,900,000 at September 30, 1997 and December 31, 1996.
6
<PAGE>
Following is a summary of changes in allowance for possible credit
losses:
<TABLE>
<CAPTION>
Nine Months Twelve Months
Ended Ended
September 30, December 31,
1997 1996
----- -----
(in thousands)
<S> <C> <C>
Balance, beginning of period $3,760 $3,562
Provision for credit losses 300 400
Charge-offs (306) (358)
Recoveries 94 156
------ -------
Total $3,848 $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 September 30, 1997
and December 31, 1996 consisted of the following:
<TABLE>
<CAPTION>
September 30, December 31,
1997 1996
----- -----
(in thousands)
<S> <C> <C>
Real estate owned $880 $941
Other repossessed assets -- 7
---- ----
Total $880 $948
==== ====
</TABLE>
9. OFFICE PROPERTIES AND EQUIPMENT
Office properties and equipment at September 30, 1997 and December 31,
1996 are summarized by major classifications as follows:
<TABLE>
<CAPTION>
September 30, December 31,
1997 1996
----- -----
(in thousands)
<S> <C> <C>
Land, buildings and improvements $3,713 $3,689
Furniture and equipment 1,568 1,437
------ ------
Total 5,281 5,126
Less accumulated depreciation (2,389) (2,127)
------ ------
Total $2,892 $2,999
====== ======
</TABLE>
7
<PAGE>
10. DEPOSITS
Deposits at September 30, 1997 and December 31, 1996 consisted of the
following:
<TABLE>
<CAPTION>
September 30, December 31,
1997 1996
----- -----
(in thousands)
<S> <C> <C>
NOW accounts $ 26,651 $ 26,477
Non-interest bearing accounts 7,607 7,594
Money market, municipal deposits, and other accounts 67,224 51,408
Savings and club accounts 33,648 34,541
Time deposits 188,102 169,899
-------- ---------
Total 323,232 289,919
Accrued interest payable 375 379
-------- --------
Total $323,607 $290,298
======== ========
</TABLE>
The Bank pledged mortgage loans and mortgage-backed securities
aggregating approximately $6,183,000 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
totaled $128,402,000 and $136,622,000 at September 30, 1997 and
December 31, 1996, respectively. The range of interest rates on these
borrowings was 5.08% to 7.52% for both periods. 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 September 30, 1997 and
December 31, 1996 included securities sold under agreements to
repurchase of $26,268,000 and $27,297,000 respectively. At September
30, 1997, $14,268,000 was due within sixty days and $12,000,000 was due
June 1999 and could be extended by one year at the option of the
lender. The agreements at December 31, 1996 were all due within thirty
days. The weighted average interest rates at September 30, 1997 and
December 31, 1996 were 5.91% and 5.61%, respectively. Securities sold
under agreement to repurchase were collateralized by mortgage-backed
securities with amortized costs of $28,611,000 and $28,935,000 and
market values of approximately $28,713,000 and $28,816,000 at September
30, 1997 and December 31, 1996, respectively.
12. OTHER BORROWED FUNDS
Other borrowed funds at September 30, 1997 and December 31, 1996
consisted of securities sold under agreements to repurchase. At
September 30, 1997 and December 31, 1996, $14,830,000 and $16,526,000
was due within thirty days, respectively. At the end of each period,
$20,000,000 was due November 1998 and could be extended by one year at
the option of the lender. The weighted average interest rate was 5.79%
and 5.73% at September 30, 1997 and December 31, 1996, respectively.
Such agreements are treated as financings and the obligations to
repurchase securities sold are reflected as liabilities in the
statements of financial condition. Securities sold under agreement to
repurchase were collateralized by mortgage-backed securities with
amortized costs of $34,982,000 and $37,755,000 and market values of
approximately $35,259,000 and $38,174,000 at September 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.
8
<PAGE>
13. INTEREST RATE SWAP
The Company has entered into an interest rate swap as a component of
managing interest rate risk. The swap agreement is held for purposes
other than trading. Periodic net cash settlements under the swap
agreement are accrued as an adjustment to interest expense over the
life of the agreement. The Company pays a fixed rate of 6.10% for two
years on a notional amount of $20,000,000 and receives three month
London Interbank Offered Rates (LIBOR) adjusted every three months
(currently 5.72%). The swap was entered into to hedge the Company's
short-term borrowings.
14. COMMITMENTS AND CONTINGENCIES
Commitments at September 30, 1997 and December 31, 1996 consisted of
the following:
<TABLE>
<CAPTION>
September 30, December 31,
1997 1996
----- -----
(in thousands)
<S> <C> <C>
Fixed rate mortgage loans (current market rates) $ 2,780 $ 2,310
Adjustable rate mortgage loans 766 1,107
Purchase of fixed rate mortgage loans --- 7,189
Unused lines of credit 5,604 5,421
Letters of credit 483 574
Consumer loans 639 564
Loans in process 1,688 1,222
------- -------
Total $11,960 $18,387
======= =======
</TABLE>
At September 30, 1997 all commitments are expected to be funded within
one year.
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 September 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 loans 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.
Forward-looking Statements
The information contained in the Quarterly Report on Form 10-Q for the
three and nine month periods ended September 30, 1997 contains forward-looking
statements (as such term is defined under Section 21E of the Securities Exchange
Act of 1934 and the regulations thereunder), including without limitation,
statements as to trends, management's beliefs, expectations or opinions, which
are based upon a number of assumptions concerning future conditions that
ultimately may provide to be inaccurate.
Such forward-looking statements are subject to risks and uncertainties
and may be affected by various factors which may cause actual results to differ
materially from those in the forward-looking statements. Certain of these risks,
uncertainties and other factors, are discussed in the Company's Annual Report on
Form 10-K for the year ended December 31, 1996.
Net Income
The Company earned $1,152,000 and $3,572,000 or $.43 per share and $1.32
per share for the three and nine month periods ended September 30, 1997. The
Company earned $1,133,000 and $3,408,000 or $.41 and $1.25 per share for the
three and nine month periods ended September 30, 1996, respectively, before the
effect of an imposition of a special assessment to recapitalize the Savings
Association Insurance Fund ("SAIF") and a recovery of a valuation allowance
related to deferred income taxes. After considering the $1,001,000 after-tax
effect of the special assessment and the $732,000 effect of the recovery of the
valuation allowance, net income totaled $864,000 and $3,139,000 or $.32 and
$1.16 per share for the three and nine month periods ended September 30, 1996,
respectively.
Net Interest Income
Net interest income for the three and nine month periods ended September
30, 1997 totaled $3,785,000 and $11,417,000 compared to $3,796,000 and
$11,303,000 for the three and nine month periods ended September 30, 1996, a
decrease of $11,000 or .3% for the three month period and an increase of
$114,000 or 1.0% for the nine month period, respectively. The decrease in net
interest income for the three month period ended September 30, 1997 was
attributable to a decline in net interest margin to 2.99% from 3.27% partially
offset by an increase in net interest-earning assets for the comparable period
last year. The increase in net interest income for the nine month period ended
September 30, 1997 was attributable to growth in net interest-earning assets
partially offset by a decline in net interest margin to 3.07% from 3.32% for the
comparable period last year. Average interest-earning assets increased by
$41,515,000 and $41,966,000 for the three and nine month periods ended September
30, 1997, respectively, as compared to the prior year. Average interest-bearing
liabilities increased by $37,503,000 and $39,376,000 for the three and nine
month periods ended September 30, 1997, respectively, as
10
<PAGE>
compared to the prior year. The increases in interest-earning assets was
attributable to increases in mortgage-backed securities of $24,288,000 and
$30,769,000 and loans receivable of $16,095,000 and $10,850,000 for the three
and nine month periods ended September 30, 1997, respectively, as compared to
the prior year. The increases in interest-bearing liabilities were primarily
attributable to an increase in deposits of $38,992,000 and $27,552,000 for the
three and nine month periods ended September 30, 1997, respectively, as compared
to the prior year.
The following table sets forth information for the three and nine month periods
ended September 30, 1997 and September 30, 1996, respectively, 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; and (5) 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.
<TABLE>
<CAPTION>
Three Months Ended
September 30, 1997 September 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 $273,654 $5,719 8.36% $257,559 $5,482 8.51%
Mortgage-backed securities 199,410 3,533 7.09 175,122 3,164 7.23
Other (1) 32,786 565 6.90 31,654 548 6.92
--------- ------- ------ -------- ------- ------
Total interest-earning assets 505,850 9,817 7.76 464,335 9,194 7.92
--------- ------- ------ -------- ------- ------
Non-interest earning assets 13,492 15,860
--------- --------
Total assets $519,342 $480,195
======== ========
Interest bearing liabilities:
Deposits $315,784 3,554 4.50 $276,792 3,000 4.34
Borrowings 166,439 2,478 5.96 167,928 2,398 5.71
--------- ------- ------ -------- ------- ------
Total interest-bearing liabilities 482,223 6,032 5.00 444,720 5,398 4.86
--------- ------- ------ -------- ------- ------
Non-interest-bearing liabilities 2,213 4,483
--------- --------
Total liabilities 484,436 449,203
--------- --------
Shareholders' equity 34,906 30,992
--------- --------
Total liabilities and shareholders' equity $519,342 $480,195
======== ========
Net interest income $3,785 $3,796
====== ======
Interest rate spread 2.76% 3.06%
==== ====
Net yield on weighted average
interest-earning assets 2.99% 3.27%
==== ====
</TABLE>
11
<PAGE>
<TABLE>
<CAPTION>
Nine Months Ended
September 30, 1997 September 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 $266,286 $16,720 8.37% $255,436 $16,251 8.48%
Mortgage-backed securities 196,324 10,527 7.15 165,555 9,099 7.33
Other (1) 33,430 1,708 6.81 33,083 1,706 6.88
--------- -------- ----- -------- ------- -----
Total interest-earning assets 496,040 28,955 7.78 454,074 27,056 7.94
--------- -------- ----- -------- ------- -----
Non-interest earning assets 13,441 13,629
--------- --------
Total assets $509,481 $467,703
======== ========
Interest bearing liabilities:
Deposits $303,627 10,103 4.44 $276,075 9,010 4.35
Borrowings 169,982 7,435 5.83 158,148 6,743 5.68
--------- -------- ----- -------- ------- -----
Total interest-bearing liabilities 473,609 17,538 4.94 434,233 15,753 4.84
--------- -------- ----- -------- ------- -----
Non-interest-bearing liabilities 1,874 2,673
--------- --------
Total liabilities 475,483 436,896
--------- --------
Shareholders' equity 33,998 30,807
--------- --------
Total liabilities and shareholders' equity $509,481 $467,703
======== ========
Net interest income $11,417 $11,303
======= =======
Interest rate spread 2.84% 3.10%
==== ====
Net yield on weighted average
interest-earning assets 3.07% 3.32%
==== ====
</TABLE>
(1) Consists of interest-earning deposits, short-term funds, investment
securities, and Federal Home Loan Bank stock.
Provision for Credit Losses
The provision for credit losses was $100,000 and $300,000 for the three
and nine month periods ended September, 1997 and 1996, respectively. As of
September 30, 1997, the allowance for credit losses totaled $3,848,000 or 1.36%
of total loans, including loans held for sale, compared to $3,760,000 or 1.42%
of total loans, including loans held-for-sale at September 30, 1996.
Other Income
Other income decreased by $143,000 for the three month period ended
September 30, 1997 from the comparable period of 1996. The decrease for the
three month period ended September 30, 1997 was attributable to the elimination
of the accretion of excess of fair value over cost of $62,000, which ended in
the first quarter of 1997, and a decrease in net profits relating to the sale of
assets of $54,0000 compared to the comparable period in the prior year.
Other income decreased by $87,000 for the nine month period ended
September 30, 1997 from the comparable period of 1996. The decrease for the nine
month period ended September 30, 1997 was attributable to the elimination of the
accretion of excess of fair value over cost of $121,000, which ended in the
first quarter of 1997, offset by an increase in net profits relating to the sale
of assets of $15,000 compared to the comparable period in the prior year.
12
<PAGE>
Operating Expenses
General and Administrative Expense - General and administrative expense
decreased $63,000 or 2.8% for the three month period ended September 30, 1997
from the comparable period of 1996. The decrease in general and administrative
expense was primarily attributable to a decrease of $104,000 in federal
insurance premium which was partially offset by an increase of $47,000
attributable to costs associated with operation, expansion and administration of
customer services for the three month period ended September 30, 1997. General
and administrative expense increased $86,000 or 1.3% for the nine month period
ended September 30, 1997 from the comparable period of 1996.
The increase in general and administrative expense for the nine month
period ended September 1997 was attributable to increases of $209,000 in costs
associated with operation, expansion and administration of customer services,
$85,000 in marketing costs, $55,000 in salaries and employee benefits and
$32,000 in occupancy and equipment expenses. These increases were offset by a
decrease of $295,000 in the federal insurance premium for the nine month period
ended September 30, 1997 compared to the nine month period ended September 30,
1996.
SAIF Recapitalization Assessment - On September 30, 1996, the Deposit Insurance
Funds Act of 1996 was enacted. The legislation required financial institutions
with SAIF insured deposits to pay a special assessment based on deposits as of
March 31, 1995 to recapitalize the SAIF. The assessment rate of $.657 per $100
of assessable deposits amounted to a $1,564,000 charge to income before taxes
during the quarter ended September 30, 1996. There was no assessment in 1997.
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 increased $525,000 and $507,000 for the three and
nine month periods ended September 30, 1997, respectively, as compared to the
same periods in 1996. Pre-tax income increased $1,545,000 and $1,672,000 from
the comparable three and nine month periods of 1996.
A recovery of a valuation allowance related to deferred income taxes was
recognized in the amount $732,000 during the quarter ended September 30, 1996.
The recovery was recognized after considering the impact of changes in the
Internal Revenue Code and the estimated timing of temporary differences related
to deferred loan fees for tax purposes. No recovery was recorded in 1997.
Financial Condition
Total assets increased to $525,092,000 as of September 30, 1997 from
$498,399,000 on December 31, 1996, an increase of 7.1% on an annualized basis.
This increase was attributable to an increase in loans receivable and
mortgage-backed securities. From December 31, 1996 to September 30, 1997 loans
receivable and mortgage-backed securities increased by $19,738,000 and
$11,634,000, respectively.
Total liabilities increased to $489,053,000 as of September 30, 1997
from $465,754,000 on December 31, 1996, an increase of 6.7% on an annualized
basis. Deposits increased to $323,607,000 as of September 30, 1997 from
$290,298,000 on December 31, 1996. This increase was primarily due to increases
in time deposits and money market, municipal deposits, and other accounts. From
December 31, 1996 to September 30, 1997, time deposits increased by $18,203,000
while money market, municipal deposits, and other accounts increased by
$15,816,000. These increases were used to fund the increase in loans receivable
and mortgage-backed securities.
Shareholders' equity increased to $36,039,000 as of September 30, 1997
from $32,645,000 on December 31, 1996. This increase was primarily the result of
net income of $3,572,000 for the nine months ended September 30, 1997, less
$813,000 paid during the nine month period with respect to cash dividends and
cash paid
13
<PAGE>
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 adjustments to shareholders' equity.
The Company had unrealized losses of $870,000 on December 31, 1996 and
unrealized losses of $235,000 on September 30, 1997 or a net decrease in
unrealized losses of $635,000.
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.
<TABLE>
<CAPTION>
September 30, December 31,
1997 1996
------------ -----------
(dollars in thousands)
<S> <C> <C>
Non-accrual loans
Residential loans $1,826 $2,316
Commercial loans 989 592
Consumer loans 329 305
------ ------
Total non-accrual loans 3,144 3,213
Real estate owned 880 941
Other repossessed assets --- 7
------ ------
Total non-performing assets $4,024 $4,161
====== ======
Total non-performing assets as a percent of total assets .77% .83%
=== ===
</TABLE>
Although the Company's management monitors the quality of assets on a
regular basis, 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.
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 loan principal repayments, increases in 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 5.79% of its assets qualifying for liquidity under
applicable federal regulations as of September 30, 1997. The overall liquidity
percentage requirement is currently 5% on an average monthly basis.
At September 30, 1997, the Company had approximately $11,960,000 in
outstanding commitments. It is anticipated that these commitments will fund
within the next year and funds will be available from normal cash flows.
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
14
<PAGE>
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.
The following table summarizes the amounts of interest-earning assets
and interest-bearing liabilities outstanding as of September 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), municipal deposits, 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.
15
<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 $53,890 $23,618 $ 660 $ --- $ --- $ --- $ 78,168
Fixed rate 27,022 39,368 26,207 31,131 10,960 203 134,891
Mortgage-backed securities
Adjustable rate 97,034 16,020 --- --- --- --- 113,054
Fixed rate 15,233 23,273 16,171 22,266 11,684 1,047 89,674
Consumer and commercial loans
Adjustable rate 12,256 498 --- --- --- --- 12,754
Fixed rate 22,809 20,461 7,298 3,834 475 --- 54,877
Loans held for sale 408 --- --- --- --- --- 408
Investment securities 7,618 2,000 12,105 --- --- 10,186 31,909
Investment securities held-for-trading 592 --- --- --- --- --- 592
------- ------- ------- ------- ------- ------- -------
Total 236,862 125,238 62,441 57,231 23,119 11,436 516,327
------- ------- ------- ------- ------- ------- -------
Interest-bearing liabilities:
Deposits
Savings accounts 4,711 7,535 5,573 8,383 5,798 1,648 33,648
NOW and non-interest
bearing demand accounts 5,824 8,846 6,094 8,179 4,491 824 34,258
Money market accounts 20,839 24,301 11,570 8,870 1,604 40 67,224
Certificates of deposit 130,015 49,007 9,080 --- --- --- 188,102
Borrowings 100,899 57,725 4,608 --- --- --- 163,232
Interest rate swaps
(pay fixed, receive floating) (20,000) 20,000 --- --- --- --- ---
------- ------- ------- ------- ------- ------- -------
Total 242,288 167,414 36,925 25,432 11,893 2,512 486,464
------- ------- ------- ------- ------- ------- -------
Excess int.-earning assets (liabilities) $( 5,426) $(42,176) $ 25,516 $31,799 $11,226 $ 8,924 $ 29,863
======== ======== ======== ======== ======= ======= ========
Cumulative excess interest-earning
assets (liabilities) $( 5,426) $(47,602) $(22,086) $ 9,713 $20,939 $29,863
======== ======== ======== ======= ======= =======
Ratio of GAP during the period
to total assets (1.03)% (8.04)% 4.86% 6.06% 2.14% 1.70%
===== ====== ==== ==== ==== ====
Ratio of cumulative GAP
to total assets (1.03)% (9.07)% (4.21)% 1.85% 3.99% 5.69%
===== ===== ====== ==== ==== ====
</TABLE>
16
<PAGE>
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 September 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>
Core (Leverage) $34,391 6.57% $15,715 3.0% $26,192 5.0%
Tangible 34,391 6.57 7,858 1.5 N/A N/A
Tier I risk-based 34,391 15.83 8,691 4.0 13,036 6.0
Total risk-based 37,046 17.05 17,381 8.0 21,726 10.0
</TABLE>
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 not materially different from the Basic EPS or
Diluted EPS required by the statement.
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.
In June 1997, the FASB issued Statement No. 131, "Disclosure about
Segments of an Enterprise and Related Information." This statement requires that
public business enterprises report certain information about operating segments
in complete sets of financial statements of the enterprise and in condensed
financial statements of interim periods issued to shareholders. It also requires
that public business enterprises report certain information about their products
and services, the geographic areas in which they operate, and their major
customers. This statement is effective for all periods ending after December 15,
1997. This statement will not have a material effect in the way the financial
statements are presented.
17
<PAGE>
Selected Financial and Other Data
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------
Three Months Ended Nine Months Ended
September 30, September 30, September 30, September 30
1997 1996 1997 1996
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Interest rate spread 2.76% 3.06% 2.84% 3.10%
Net yield on interest-earning assets 2.99% 3.27% 3.07% 3.32%
Return on average assets .89% .72% .93% .89%
Return on average equity 13.21% 11.16% 14.01% 13.59%
General and administrative
expenses to average assets 1.67% 1.86% 1.71% 1.83%
Ratio of interest-earning assets to
interest-bearing liabilities 1.05x 1.04x 1.05x 1.04x
Ratio of non-performing assets
to total assets at end of period --- --- .77% .78%
Dividends per common share $.10 $.09 $.30 $.27
Book value per share
at end of period --- --- $13.31 $11.63
</TABLE>
18
<PAGE>
FIRST HOME BANCORP INC.
AND SUBSIDIARY
Part II: Other Information
Item 6: Exhibits and Other Reports on Form 8-K
(A) Exhibit II - Statement regarding computation of earnings
per share
(B) Exhibit 27 - Financial Data Schedule
(C) No reports on Form 8-K were filed during the quarter for
which this report is filed.
19
<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: November 12, 1997 /s/ Stephen D. Miller
------------------------------------
Stephen D. Miller
President/Chief Executive Officer
Date: November 12, 1997 /s/Robert A. DiValerio
------------------------------------
Robert A. DiValerio
Senior Executive Vice-President/
Chief Financial Officer
20
<PAGE>
EXHIBIT (11)
FIRST HOME BANCORP INC. AND SUBSIDIARY
COMPUTATION OF EARNINGS PER SHARE OF COMMON STOCK
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
September 30 September 30 September 30 September 30
1997 1996 1997 1996
---- ---- ---- ----
PRIMARY
EARNINGS:
<S> <C> <C> <C> <C>
Net income $1,152,472 $864,502 $3,572,491 $3,139,379
========== ======== ========== ==========
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) 48,011 17,665 41,973 17,696
---------- ---------- ---------- ----------
Weighted average number of common
shares outstanding as adjusted 2,756,437 2,724,344 2,750,399 2,724,375
========== ========= ========= ==========
Primary earnings per share of
common stock $.42 $.32 $1.30 $1.15
==== ==== ===== =====
ASSUMING FULL DILUTION
EARNINGS:
Net income $1,152,472 $864,502 $3,572,491 $3,139,379
========== ======== ========== ==========
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) 53,898 17,840 53,898 17,840
---------- ---------- ---------- ----------
Weighted average number of common
shares outstanding as adjusted 2,762,324 2,724,519 2,762,324 2,724,519
=========== =========== =========== ===========
Fully diluted earnings per share of
common stock $.42 $.32 $1.29 $1.15
==== ==== ===== =====
</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 September 30, 1997 and the
consolidated statements of income for the nine months ended September 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> U.S. DOLLARS
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> SEP-30-1997
<EXCHANGE-RATE> 1
<CASH> 4,722
<INT-BEARING-DEPOSITS> 988
<FED-FUNDS-SOLD> 0
<TRADING-ASSETS> 592
<INVESTMENTS-HELD-FOR-SALE> 108,878
<INVESTMENTS-CARRYING> 115,030
<INVESTMENTS-MARKET> 116,660
<LOANS> 278,648
<ALLOWANCE> 3,848
<TOTAL-ASSETS> 525,092
<DEPOSITS> 323,607
<SHORT-TERM> 100,899
<LIABILITIES-OTHER> 2,214
<LONG-TERM> 62,333
0
0
<COMMON> 0
<OTHER-SE> 36,039
<TOTAL-LIABILITIES-AND-EQUITY> 525,092
<INTEREST-LOAN> 16,720
<INTEREST-INVEST> 12,235
<INTEREST-OTHER> 0
<INTEREST-TOTAL> 28,955
<INTEREST-DEPOSIT> 10,103
<INTEREST-EXPENSE> 17,538
<INTEREST-INCOME-NET> 11,417
<LOAN-LOSSES> 300
<SECURITIES-GAINS> 143
<EXPENSE-OTHER> 6,697
<INCOME-PRETAX> 5,384
<INCOME-PRE-EXTRAORDINARY> 5,384
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 3,572
<EPS-PRIMARY> 1.30
<EPS-DILUTED> 1.29
<YIELD-ACTUAL> 7.78
<LOANS-NON> 3,144
<LOANS-PAST> 0
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 3,760
<CHARGE-OFFS> 306
<RECOVERIES> 94
<ALLOWANCE-CLOSE> 3,848
<ALLOWANCE-DOMESTIC> 3,848
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
