<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
---------------
FORM 10-Q
QUARTERLY REPORT UNDER SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 1998
Commission File Number: 0-21385
-------
WESTWOOD HOMESTEAD FINANCIAL CORPORATION
-------------------------------
(Exact name of small business issuer as specified in its charter)
INDIANA 31-1463057
- ----------------------- -----------------
(State of Incorporation) (I.R.S. Employer
Identification No.)
3002 HARRISON AVENUE, CINCINNATI, OHIO 45211-5789
- --------------------------------------- ----------
(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code: (513) 661-5735
--------------
Indicate by checkmark whether the registrant (1) filed all reports
required to be filed by Section 13 or 15(d) of the Exchange Act during the
preceding 12 months (or for such shorter period that the registrant was required
to file such reports), and (2) has been subject to such filing requirements for
the past 90 days: Yes X No .
--- ---
Indicate the number of shares outstanding of each of the issuer's
classes of common stock, as of the latest practical date. Shares outstanding at
September 30, 1998 common stock, $.01 par value: 2,435,618.
<PAGE> 2
CONTENTS
<TABLE>
<CAPTION>
PAGE
----
PART I. FINANCIAL INFORMATION
<S> <C> <C>
Item 1. Financial Statements
Consolidated Statements of Financial Condition as of
September 30, 1998 (Unaudited) and December 31, 1997 ............................................. 1
Consolidated Statements of Income for the Three Months and Nine Months
Ended September 30, 1998 and 1997 (Unaudited) .................................................... 2
Consolidated Statements of Cash Flows for the Nine Months Ended
September 30, 1998 and 1997 (Unaudited) 3
Notes to Consolidated Financial Statements (Unaudited) ........................................... 4
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 6
Item 3. Quantitative and Qualitative Disclosures About Market Risk ..................................... 9
PART II. OTHER INFORMATION
Item 1. Legal Proceedings ............................................................................. 10
Item 2. Changes in Securities ......................................................................... 10
Item 3. Defaults Upon Senior Securities ............................................................... 10
Item 4. Submission of Matters to a Vote of Security-Holders ........................................... 10
Item 5. Other Information ............................................................................. 10
Item 6. Exhibits and Reports on Form 8-K .............................................................. 10
</TABLE>
SIGNATURES
<PAGE> 3
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
WESTWOOD HOMESTEAD FINANCIAL CORPORATION
Consolidated Statements of Financial Condition
<TABLE>
<CAPTION>
(Unaudited)
September 30, 1998 December 31, 1997
------------------ -----------------
<S> <C> <C>
ASSETS
Cash and cash equivalents $ 6,787,971 10,368,279
Securities available for sale -- 999,690
Mortgage backed securities available for sale 1,693,602 2,150,618
Loans receivable, net 114,641,784 117,648,013
Stock in Federal Home Loan Bank 1,121,700 1,023,800
Accrued interest receivable 721,974 712,797
Premises and equipment, net 1,998,137 1,082,978
Income taxes 24,910 177,416
Prepaid expenses and other assets 480,814 95,190
------------- ------------
Total assets $ 127,470,892 134,258,781
============= ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits $ 84,939,519 88,234,007
Federal Home Loan Bank advances 16,756,913 14,764,818
Advances from borrowers for taxes and insurance 519,980 865,808
Income taxes 260,894 162,975
Accrued expenses and other liabilities 128,140 85,461
------------- ------------
Total liabilities 102,605,446 104,113,069
Contingencies (Note 4 )
Stockholders' equity:
Common stock, $.01 par value, 15,000,000 shares 28,434 28,434
authorized, 2,435,618 and 2,843,375 shares
outstanding at September 30, 1998
and December 31, 1997, respectively
Additional paid in capital 18,923,534 18,789,500
Retained income 15,286,175 14,962,966
Employee Stock Ownership Plan (2,486,158) (2,686,661)
Management Recognition Plan (1,388,299) (975,484)
Treasury Stock, at cost 407,757 shares (5,517,822) --
Accumulated other comprehensive income 19,582 26,957
------------- ------------
Total stockholders' equity 24,865,446 30,145,712
============= ============
Total liabilities and stockholders' equity $ 127,470,892 134,258,781
============= ============
</TABLE>
See accompanying notes to consolidated financial statements.
1
<PAGE> 4
WESTWOOD HOMESTEAD FINANCIAL CORPORATION
Consolidated Statements of Income
(Unaudited)
<TABLE>
<CAPTION>
Three months ended Nine months ended
September 30, September 30,
------------------------ ------------------------
1998 1997 1998 1997
<S> <C> <C> <C> <C>
Interest income:
Loans receivable $2,378,123 2,244,217 7,278,046 6,080,853
Mortgage-backed securities 31,625 233,295 98,480 716,613
Investment securities -- 44,605 10,254 150,105
Interest-bearing deposits with banks 116,821 172,491 307,205 539,064
------------------------ ------------------------
Total interest income 2,526,569 2,694,608 7,693,985 7,486,635
------------------------ ------------------------
Interest expense:
Deposits 1,127,707 1,272,597 3,430,582 3,587,812
Borrowings 251,402 222,877 732,788 439,849
------------------------ ------------------------
Total interest expense 1,379,109 1,495,474 4,163,370 4,027,661
------------------------ ------------------------
Net interest income 1,147,460 1,199,134 3,530,615 3,458,974
Provision for loan losses 22,160 30,700 35,871 84,693
------------------------ ------------------------
Net interest income after provision for loan losses 1,125,300 1,168,434 3,494,744 3,374,281
------------------------ ------------------------
Non-interest income:
Gain on loan sales 34,285 5,354 368,280 5,354
Service charges and fees 41,651 37,571 113,172 100,138
------------------------ ------------------------
Total non-interest income 75,936 42,925 481,452 105,492
------------------------ ------------------------
Non-interest expenses:
Compensation and benefits 423,548 577,219 1,347,892 1,140,510
Occupancy costs 65,049 44,569 179,397 125,880
Franchise tax 113,390 102,251 340,970 342,293
Federal deposit insurance premiums 12,652 12,369 39,750 37,899
Data processing 17,129 72,365 71,198 127,451
Legal, accounting and examination fees 49,614 36,997 128,269 137,076
Consulting fees 5,505 11,040 33,776 27,832
Advertising 14,211 7,998 37,656 27,136
Other 73,467 54,949 237,892 179,653
------------------------ ------------------------
Total non-interest expenses 774,565 919,757 2,416,800 2,145,730
------------------------ ------------------------
Income before income tax expense 426,671 291,602 1,559,396 1,334,043
Income tax expense 147,000 98,000 557,000 454,000
------------------------ ------------------------
Net income $ 279,671 193,602 $1,002,396 880,043
======================== ========================
Earnings per share, basic and diluted $ 0.13 $ 0.08 $ 0.43 $ 0.35
======================== ========================
</TABLE>
See accompanying notes to consolidated financial statements.
2
<PAGE> 5
WESTWOOD HOMESTEAD FINANCIAL CORPORATION
Consolidated Statements of Cash Flows
(Unaudited)
<TABLE>
<CAPTION>
Nine months ended September 30,
1998 1997
---- ----
<S> <C> <C>
Cash flows from operating activities:
Net income $ 1,002,396 880,043
Adjustments to reconcile net income to net cash provided by
operating activities:
Net amortization of premiums and discounts 8,039 (21,030)
Depreciation of premises and equipment 126,023 81,244
Federal Home Loan Bank stock dividend (57,800) (51,900)
Deferred income taxes 51,668 (34,731)
Accretion of net loan fees deferred 15,542 70,022
Provision for loan loss 35,871 84,693
Gain on loan sales (368,280) (5,354)
Employee Stock Ownership Plan amortization 229,925 199,390
Management Recognition Plan amortization 194,807 259,742
Change in:
Accrued interest receivable (9,177) (192,471)
Prepaid expenses and other assets (385,624) (218,536)
Accrued expenses 42,679 (31,343)
Income taxes 202,571 105,220
------------ -----------
Net cash provided by operating activities 1,088,640 1,124,989
------------ -----------
Cash flows from investing activities:
Proceeds from maturity of investment securities 1,000,000 --
Purchase of FHLB stock (40,100) --
Principal payments on mortgage backed securities 437,478 1,797,996
Net increase in loans receivable (14,544,519) (26,790,826)
Proceeds from sale of loans 17,867,615 128,948
Additions to premises and equipment (1,041,182) (107,689)
------------ -----------
Net cash used in investing activities 3,679,292 (24,971,571)
------------ -----------
Cash flows from financing activities
Net (decrease) increase in deposits (3,294,488) 6,954,571
Purchase of common stock for treasury (5,517,822) --
Cash dividends paid (574,575) (597,108)
Purchase of common stock for MRP (607,622) (1,051,356)
Short term Federal Home Loan Bank advances 2,000,000 8,650,000
Long term Federal Home Loan Bank advance repayments (7,905) (8,726)
Long term Federal Home Loan Bank advances -- 8,000,000
Net decrease in advances from borrowers for taxes and insurance (345,828) (168,591)
------------ -----------
Net cash provided (used) by financing activities (8,348,240) 21,778,790
------------ -----------
Net decrease in cash and cash equivalents (3,580,308) (2,067,792)
Beginning cash and cash equivalents 10,368,279 13,420,389
------------ -----------
Ending cash and cash equivalents $ 6,787,971 11,352,597
============ ===========
</TABLE>
See accompanying notes to consolidated financial statements.
3
<PAGE> 6
WESTWOOD HOMESTEAD FINANCIAL CORPORATION
Notes to Consolidated Financial Statements
(Unaudited)
September 30, 1998 and December 31, 1997
(1) Basis of Presentation
The accompanying unaudited consolidated financial statements were
prepared in accordance with instructions for Form 10-Q and therefore,
do not include all disclosures necessary for a complete presentation of
the consolidated statements of financial condition, income and cash
flows in conformity with generally accepted accounting principles, and
should be read in conjunction with the consolidated financial
statements and notes thereto for the fiscal year ended December 31,
1997. All adjustments which are, in the opinion of management,
necessary for the fair presentation of the interim financial statements
have been included. The consolidated statements of income for the
quarter and nine months ended September 30, 1998 are not necessarily
indicative of the results which may be expected for the entire year.
(2) Comprehensive Income
The Company adopted FASB Statement No. 130, "Reporting Comprehensive
Income", during the first quarter of 1998. The statement establishes
standards for reporting and display of comprehensive income and its
components. Comprehensive income includes net income and other
comprehensive income, which for the Company includes unrealized gains
and losses on securities available for sale.
<TABLE>
<CAPTION>
Three months ended September 30
------------------------------------
1998 1997
---- ----
<S> <C> <C>
Net Income 279,671 193,602
Other comprehensive income, net of tax:
Unrealized holding losses arising during the period (847) (3,472)
-------- --------
Comprehensive income 278,824 190,130
========= ========
</TABLE>
(3) Earnings Per Share
The following table presents the numerators (net income) and
denominators (average shares outstanding) for the basic and diluted net
income per share computations for the three months ended September 30:
<TABLE>
<CAPTION>
1998 1997
---- ----
<S> <C> <C>
Net income, basic and diluted $279,671 $193,602
Average shares outstanding 2,221,199 2,573,547
Effect of dilutive securities -- 8,901
---------- ----------
Average shares outstanding including dilutive shares 2,221,199 2,617,251
========== ==========
</TABLE>
4
<PAGE> 7
<TABLE>
<S> <C> <C>
Net income per share, basic $0.13 $0.08
========== ==========
Net income per share, diluted $0.13 $0.08
========== ==========
</TABLE>
(4) Contingencies
Although the Bank, from time to time, is involved in various legal
proceedings in the normal course of business, there are no material
legal proceedings to which the Bank is a party or to which any of its
property is subject.
(5) Allowance for loan losses
Activity in the allowance for loan losses as follows:
<TABLE>
<CAPTION>
September 30, 1998 December 31, 1997
<S> <C> <C>
Balance, January 1 266,263 165,513
Loan charge-offs -- --
Recoveries -- --
Provision for loan losses 35,871 100,750
------- -------
Balance, end of period 302,134 266,263
======= =======
</TABLE>
(6) Consolidated Statement of Changes in Stockholders' Equity (Unaudited)
<TABLE>
<CAPTION>
Nine months ended
----------------------------
September 30,
----------------------------
1998 1997
----------------------------
<S> <C> <C>
Balance, January 1 30,145,712 39,982,418
Net Income 1,002,396 880,043
Dividends on common stock (574,575) (597,110)
Purchase of shares by management recognition plan (607,622) (1,051,356)
Amortization of management recognition plan 194,807 259,741
Amortization of employee stock ownership plan 229,925 199,392
Purchase of treasury stock (5,517,822) --
Changes in accumulated other comprehensive income (7,375) (159,852)
--------------- ----------------
Balance, end of period 24,865,446 39,513,276
=============== ================
</TABLE>
5
<PAGE> 8
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
COMPARISON OF FINANCIAL CONDITION AT SEPTEMBER 30, 1998 AND DECEMBER 31, 1997
Westwood Homestead Savings Bank (the "Bank") converted from a state
chartered mutual savings bank to a state chartered stock savings bank on
September 27, 1996. In the conversion, 2,843,375 shares of common stock of
Westwood Homestead Financial Corporation (the "Company") were sold, generating
net proceeds after conversion expenses of $27.7 million. Of this amount, $13.9
million was used to purchase 100% of the common stock of the Bank, $2.4 million
to fund the stock purchase made by the Employee Stock Ownership Plan and the
balance was used to purchase investments and for other corporate purposes.
Total assets decreased $6.8 million, or 5.1% from $134.3 million at
December 31, 1997 to $127.5 million at September 30, 1998. Loans receivable
decreased $3.0 million from $117.6 million at December 31, 1997 to $114.6
million at September 30, 1998. In managing the Company's interest rate risk and
liquidity, $9.1 million of fixed rate loans were sold with servicing retained in
the second quarter.
Additions to fixed assets during the period of $1 million will
facilitate the bank in increasing both the checking account base and loan
portfolio. The two lane drive thru completed earlier in the year has improved
customer accessability for an increased number transaction accounts. Increased
lending activity is planned as the building expansion just completed has
provided the necessary space for additional staffing. The Bank's focus on
technology will add to the efficient delivery of existing and new products and
services.
Total liabilities decreased $1.5 million from $104.1 million at
December 31, 1997 to $102.6 million at September 30, 1998. Deposits decreased
$3.3 million during the period primarily due to withdrawals of the $6.3 million
in maturing high rate long term C.Ds. At September 30, 1998, the Bank had $2.7
million remaining in ten year C.Ds with interest rates between 9.0% and 10.0%
that will mature by December 31, 1999. Federal Home Loan Bank ("FHLB") advances
continue to be utilized as alternate funding sources due to attractive pricing
opportunities over higher cost C.Ds.
Stockholders' equity decreased $5.3 million as a result of the stock
repurchase programs announced during the year. A total of 407,757 shares were
purchased by the Company for a total cost of $5.5 million and will be held as
treasury shares. These repurchase programs combined with the special dividend
paid on December 22, 1997 and the quarterly dividends reflect management's
commitment to increasing shareholder value. The Company's equity to asset ratio
has been reduced from 33.3% at September 30, 1996 to 19.5% at September 30,
1998.
COMPARISON OF OPERATING RESULTS FOR THE QUARTER AND NINE MONTHS ENDED SEPTEMBER
30, 1998 AND 1997
Net Income. Net income for the quarter ended September 30, 1998 was
$280,000, or 13 cents per share, as compared to $194,000, or 8 cents per share
for the quarter ended September 30, 1997. Return on average equity and return on
average assets were 4.30% and 0.89%, respectively, for the quarter ended
September 30, 1998 compared to 1.96% and 0.56%, respectively, for the same
quarter in 1997. Net income for the nine months ended September 30, 1998 was
$1,002,000, or 43 cents per share, as compared with $880,000, or 35 cents per
share for the nine months ended September 30, 1997. Return on average equity and
return on average assets were 4.80% and 1.04%, respectively, for the nine months
ended September 30, 1998 compared to 2.93% and 0.90%, respectively, for the same
period in 1997.
6
<PAGE> 9
Net Interest Income. Net interest income decreased $52,000 to
$1,147,000 for the quarter ended September 30, 1998 from $1,199,000 for the
quarter ended September 30, 1997. This decrease was due to a reduction of $15.4
million in average net interest earning assets as a result of the return of
capital and stock buybacks which have occurred in the last 12 months. Net
interest margin increased to 3.76% for the quarter ended September 30, 1998 from
3.51% for the same quarter in 1997 primarily due to balance sheet realignment in
fourth quarter 1997. Net interest income increased $72,000 to $3,531,000 for the
nine months ended September 30, 1998 from $3,459,000 for the nine months ended
September 30, 1997.
Interest Income. Interest income decreased $168,000, to $2.5 million
for the quarter ended September 30, 1998 from $2.7 million for the quarter ended
September 30, 1997 as the average balance of interest earning assets decreased
$14.5 million. Interest income on loans receivable increased $134,000 to
$2,378,000 for the quarter ended September 30, 1998 from $2,244,000 for the
quarter ended September 30, 1997. The average balance of loans receivable
increased $5.4 million to $112.1 million for the quarter ended September 30,
1998 from the same quarter a year ago while the average yield increased 8 basis
points to 8.48%. The average balance of investments and other earning assets
decreased $19.9 million from the year ago quarter resulting in $302,000 less in
other interest income. Interest income increased $207,000 to $7.7 million for
the nine months ended September 30, 1998 from $7.5 million for the nine months
ended September 30, 1997. As of September 30, 1998 loans receivable represented
90.0% of total assets as compared to 78.1% at September 30, 1997.
Interest Expense. Interest expense decreased $116,000 to $1,379,000 for
the quarter ended September 30, 1998 from $1,495,000 for the quarter ended
September 30, 1997. This decrease is due a decrease in the average cost to 5.56%
for the quarter ended September 30, 1998 from 6.09% for the quarter ended
September 30, 1997 and offset by $925,000 million more in average interest
bearing liabilities. The decrease in cost was primarily the result of maturing
high rate long term C.Ds during the last 12 months. Interest expense increased
$135,000 to $4,163,000 for the nine months ended September 30, 1998 from
$4,028,000 for the nine months ended September 30, 1997 on $8.7 million more in
average interest bearing liabilities.
Provision for Loan Losses. The Bank established provisions for loan
losses of $22,000 and $31,000 during the quarters ended September 30, 1998 and
1997, respectively. The loan portfolio is regularly reviewed by management,
including problem loans, and changes in the relative makeup to determine whether
any loans require classification or the establishment of additional reserves.
Non-Interest Income. Non-interest income increased $33,000 to $76,000
for the quarter ended September 30, 1998 from $43,000 for the quarter ended
September 30, 1997. Loan sales of $2.2 million generated gains of $34,000.
Service charges and fees increased $4,000 to $42,000 for the quarter ended
September 30, 1998 from $38,000 for the quarter ended September 30, 1997. This
increase reflects the Bank's emphasis on attracting new checking accounts in the
last year. Service charges and fees increased $13,000 to $113,000 for the nine
months ended September 30, 1998 from $100,000 for the nine months ended
September 30, 1997.
Non-Interest Expense. Non-interest expense decreased $145,000 to
$775,000 for the quarter ended September 30, 1998 from $920,000 for the quarter
ended September 30, 1997. Compensation and benefits decreased $153,000 primarily
due to $208,000 less in stock benefit plan expenses. Data processing expenses
decreased $55,000 due to expenses relating to the service bureau conversion in
1997. Investments in technology during the last 12 months have increased
equipment depreciation. Non-interest expense increased $271,000 to $2,417,000
for the nine months ended September 30, 1998 from $2,146,000 for the nine months
ended September 30, 1997. Additional staffing and investments in technology have
increased the company's operating expenses for the nine month period.
7
<PAGE> 10
Income Taxes. The Company recorded income tax expense of $557,000 and
$454,000 for the nine months ended September 30, 1998 and 1997, respectively.
LIQUIDITY AND CAPITAL RESOURCES
Cash and cash equivalents totaled $6.8 million at September 30, 1998
which consisted primarily of overnight federal funds and Federal Home Loan Bank
term deposits. In order for the Company to enhance shareholder returns and
generate a competitive return on equity, management plans to expand the Bank's
lending activities and pursue other capital management measures. Due to the
current interest rate environment management has adjusted these lending
activities to emphasize mortgage banking. At September 30, 1998 the Bank's
servicing portfolio totaled $18.5 million.
The Company will also attempt to pursue growth externally through the
selective acquisition of other financial institutions. Due to the highly
competitive market for financial institution acquisitions in the Bank's market
areas, however, the Company has not succeeded to date, and there can be no
assurance that the Company will be successful in the future in identifying
attractive acquisition candidates or in acquiring such candidates on favorable
terms. Management believes that current liquidity levels are adequate to fund
daily operations.
The Bank is subject to various regulatory capital requirements
administered by the federal banking agencies. Failure to meet minimum capital
requirements can initiate certain mandatory - and possibly additional
discretionary - actions by regulators that, if undertaken, could have a direct
material effect on the Company's consolidated financial statements. Quantitative
measures established by regulation to ensure capital adequacy require the Bank
to maintain minimum amounts and ratios ( set forth in the table below ) of
Tangible, Tier I/Core and Risk-based capital (as defined in the regulations).
Management believes, as of September 30, 1998, that the Bank meets all capital
adequacy requirements to which it is subject.
<TABLE>
<CAPTION>
To Be Well Capitalized
For Capital Under Prompt Corrective
Actual Adequacy Purposes Action Provision
----------------------- ---------------------- -----------------------
Amount Ratio Amount Ratio Amount Ratio
------ ----- ------ ----- ------ -----
<S> <C> <C> <C> <C> <C> <C>
Tangible Capital $23,084,202 18.49% 1,872,945 1.50% 6,243,150 5.00%
Tier I/Core Capital 23,084,202 18.49% 3,745,890 3.00% 7,491,780 6.00%
Risk-based Capital 23,386,336 31.62% 5,916,240 8.00% 7,395,300 10.00%
</TABLE>
YEAR 2000 COMPLIANCE
The Company has established a Year 2000 Action Plan to review the
internal information systems as well as the efforts of the outside data
processing service provider. Included in this plan are items relating to Y2K
assessment, testing and business continuity. The progress of the Action Plan has
been and will continue to be reported to the Board of Directors.
The assessment phase of the process has been completed. Processes have
been identified as mission critical, essential and non-essential. Most of the
material data processing that could be affected by this problem is provided by
the third party service bureau, Fiserv. Fiserv has represented to management
that all of the core data processing code has been renovated to address the Year
2000 issue. The first phase of testing has been completed by advancing the date
of the test bank into the next century with minimal
8
<PAGE> 11
problems, none in critical areas. This code renovation is being performed and
final testing will occur in March 1999. The historical and estimated costs of
remediation are not expected to have a material effect on the Company's
consolidated financial statements.
The Company has developed a business continuity plan related to year
2000 issues, however, this plan is still in development and is scheduled to be
completed by July 1999. This plan deals primarily with issues outside of
Management's control or ability to test, such as power, water or telephone
failures. Included in this plan will be managements intended response to remedy
these problems.
Item 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
The Bank's September 30, 1998 analysis of the impact of changes in
interest rates on net interest income over the next 12 months indicate no
significant changes in the Bank's exposure to interest rate changes since
December 31, 1997. The table below illustrates the simulation analysis of the
impact of a 100 or 200 basis point upward or downward movement in interest
rates. The impact of the rate movement was simulated as if rates changes
immediately from September 30, 1998 levels, and remained constant at those
levels thereafter. Loan prepayment speeds and deposit decay rates published by
the Office of Thrift Supervision were used in the simulation.
<TABLE>
<CAPTION>
Movement in September 30, 1998 interest rates
--------------------------------------------------------
+100 bps +200 bps -100 bps -200 bps
-------- -------- -------- --------
<S> <C> <C> <C> <C>
Net interest income (decrease) increase ($83,000) ($168,000) $83,000 $132,000
Net income per share (decrease) increase ($0.04) ($0.08) $0.04 $0.06
</TABLE>
9
<PAGE> 12
PART I OTHER INFORMATION
Item 1. LEGAL PROCEEDINGS
Although the Bank, from time to time, is involved in various legal
proceedings in the normal course of business, there are no material legal
proceedings to which the Bank is a party or to which any of its property is
subject.
Item 2. CHANGES IN SECURITIES
None
Item 3. DEFAULTS UPON SENIOR SECURITIES
None
Item 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY-HOLDERS
None
Item 5. OTHER INFORMATION
None
Item 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits. The following exhibits are being filed with this report.
Exhibit Description
------- -----------
27 Financial Data Schedule
(b)Reports on Form 8-K. None
10
<PAGE> 13
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.
WESTWOOD HOMESTEAD FINANCIAL CORPORATION
Date: November 13, 1998 By: /s/ Michael P. Breannan
-------------------------------
Michael P. Brennan
(Principal Executive Officer)
Date: November 13, 1998 By: /s/ John E. Essen
-------------------------------
John E. Essen
(Principal Financial Officer)
11
<TABLE> <S> <C>
<ARTICLE> 9
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> SEP-30-1998
<CASH> 657
<INT-BEARING-DEPOSITS> 2,267
<FED-FUNDS-SOLD> 2,173
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 1,694
<INVESTMENTS-CARRYING> 0
<INVESTMENTS-MARKET> 0
<LOANS> 114,642
<ALLOWANCE> 302
<TOTAL-ASSETS> 127,471
<DEPOSITS> 84,939
<SHORT-TERM> 1,000
<LIABILITIES-OTHER> 969
<LONG-TERM> 15,757
0
0
<COMMON> 78
<OTHER-SE> 24,837
<TOTAL-LIABILITIES-AND-EQUITY> 24,865
<INTEREST-LOAN> 7,278
<INTEREST-INVEST> 109
<INTEREST-OTHER> 309
<INTEREST-TOTAL> 7,694
<INTEREST-DEPOSIT> 3,430
<INTEREST-EXPENSE> 4,163
<INTEREST-INCOME-NET> 3,531
<LOAN-LOSSES> 36
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 2,417
<INCOME-PRETAX> 1,559
<INCOME-PRE-EXTRAORDINARY> 1,559
<EXTRAORDINARY> 0
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<NET-INCOME> 1,002
<EPS-PRIMARY> .43
<EPS-DILUTED> .43
<YIELD-ACTUAL> 2.62
<LOANS-NON> 56
<LOANS-PAST> 309
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 0
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<RECOVERIES> 0
<ALLOWANCE-CLOSE> 302
<ALLOWANCE-DOMESTIC> 302
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
