<PAGE> 1
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(Mark One)
[ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 1996
or
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
----------------------- -----------------------
Commission File Number 0-20867
PARK BANCORP, INC.
(Exact name of registrant as specified in its charter)
DELAWARE 36-4082530
- --------------------------------------------------------------------------------
(State or other jurisdiction (I.R.S. Employer
of incorporation or organization) Identification No.)
2740 WEST 55TH STREET, CHICAGO, ILLINOIS 60632
- --------------------------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
(312) 434-6040
- --------------------------------------------------------------------------------
(Registrant's telephone number, including area code)
Not Applicable
- --------------------------------------------------------------------------------
(Former name, former address and former fiscal year,
if changed 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: 2,701,441 shares of common
stock, par value $.01 per share, were outstanding as of August 12, 1996.
<PAGE> 2
PARK BANCORP, INC.
FORM 10-Q
INDEX
PAGE
----
PART I FINANCIAL INFORMATION 3
Item 1 Consolidated Statements of Financial Condition
June 30, 1996 and December 31, 1995 3
Consolidated Statements of Income
Three Months and Six Months Ended
June 30, 1996 and 1995 4
Consolidated Statements of Cash Flows
Six Months Ended June 30, 1996 and 1995 5
Notes to Consolidated Financial Statements 6
Item 2 Management's Discussion and Analysis of
Financial Condition and Results of Operations 8
PART II OTHER INFORMATION 12
Item 1 Legal Proceedings 12
Item 2 Changes in Securities 12
Item 3 Defaults Upon Senior Securities 12
Item 4 Submission of Matters to a Vote of Security Holders 12
Item 5 Other Information 12
Item 6 Reports on Form 8-K 12
SIGNATURES 13
<PAGE> 3
PART I -- FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS.
<TABLE>
<CAPTION>
PARK BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
JUNE 30, DECEMBER 31,
1996 1995
------------- -------------
(UNAUDITED)
ASSETS
<S> <C> <C>
Cash and due from banks...................................................... $ 550,336 $ 1,022,730
Interest-bearing deposit accounts in other financial institutions............ 1,140,396 11,767,256
------------ ------------
Total cash and cash equivalents..................................... 1,690,732 12,789,986
Securities available-for-sale................................................ 49,652,927 37,134,427
Securities held-to-maturity.................................................. 34,713,947 42,493,838
Loans receivable, net ....................................................... 62,801,173 60,538,247
Federal Home Loan Bank stock................................................. 756,000 675,700
Real estate held for development............................................. 1,466,158 1,624,809
Premises and equipment, net.................................................. 2,450,469 2,088,311
Accrued interest receivable.................................................. 1,331,687 1,189,922
Foreclosed real estate....................................................... 49,801 49,801
Other assets................................................................. 302,478 354,298
------------ ------------
TOTAL ASSETS................................................................. $155,215,372 $158,939,339
============ ============
LIABILITIES AND EQUITY
LIABILITIES:
Deposits.................................................................. $132,660,086 $130,502,992
Advances from borrowers for taxes and insurance........................... 1,245,522 1,117,384
Federal Home Loan Bank advances........................................... 3,000,000 9,000,000
Accrued interest payable.................................................. 135,911 183,867
Other liabilities......................................................... 515,760 601,798
----------- -----------
Total liabilities...................................................... 137,557,279 141,406,041
----------- -----------
EQUITY
Preferred stock, $0.01 par value, 1,000,000 shares
authorized and unissued................................................. -- --
Common Stock, $.01 par value, 9,000,000 shares
authorized; 0 shares issued and outstanding............................. -- --
Additional paid-in capital................................................
Retained earnings, substantially restricted............................... 17,951,264 17,456,619
Unearned shares held by employee stock ownership plan..................... -- --
Unrealized gain (loss) on securities available-for-sale, net of
taxes................................................................... (293,171) 76,679
----------- -----------
Total equity........................................................... 17,658,093 17,533,298
----------- -----------
TOTAL LIABILITIES AND EQUITY................................................. $155,215,372 $158,939,339
=========== ===========
</TABLE>
<PAGE> 4
<TABLE>
<CAPTION>
PARK BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME
FOR THE THREE MONTHS FOR THE SIX MONTHS
ENDED ENDED
JUNE 30, JUNE 30,
--------------------------- ----------------------------
1996 1995 1996 1995
------------- ------------ ------------- -------------
<S> <C> <C> <C> <C>
Interest income:
Loans receivable................................... $1,277,183 $1,281,384 $2,651,738 $2,502,449
Securities......................................... 1,334,500 1,148,435 2,603,551 2,293,892
---------- ---------- ---------- ----------
Total........................................... 2,611,683 2,429,819 5,255,289 4,796,341
---------- ---------- ---------- ----------
Interest expense:
Deposits........................................... 1,556,373 1,382,949 3,108,512 2,615,584
Federal Home Loan Bank advances.................... 3,913 1,825 5,241 98,358
---------- ---------- ---------- ----------
Total........................................... 1,560,286 1,384,774 3,113,753 2,713,942
---------- ---------- ---------- ----------
Net interest income ................................. 1,051,397 1,045,045 2,141,536 2,082,399
Provision for loan losses............................ -- 10,000 -- 25,000
---------- ---------- ---------- ----------
Net interest income after provision for
loan losses....................................... 1,051,397 1,035,045 2,141,536 2,057,399
---------- ---------- --------- ----------
Noninterest income:
Gain on sale of securities......................... -- -- -- 14,264
Income on sale of real estate held for
development...................................... 17,804 56,286 42,754 311,186
Service fee income................................. 49,620 27,649 87,384 56,886
Other operating income............................. 12,620 11,416 26,733 21,123
---------- ---------- ---------- ----------
Total noninterest income........................ 80,044 95,351 156,871 403,459
---------- ---------- ---------- ----------
Noninterest expense:
Compensation and benefits.......................... 432,040 416,062 868,301 837,439
Occupancy and equipment expense.................... 99,810 117,533 225,842 234,508
Federal deposit insurance premiums................. 83,500 78,000 166,172 158,471
Data processing services........................... 34,778 27,116 67,597 57,333
Advertising........................................ 6,848 34,331 24,651 55,633
Stationery, printing and supplies.................. 31,657 25,046 42,703 42,718
(Gain) loss on sale of foreclosed real estate...... -- -- 3,572 --
Other operating expense............................ 71,850 72,123 144,929 138,180
---------- ---------- ---------- ----------
Total noninterest income........................ 760,483 770,211 1,543,767 1,524,282
---------- ---------- ---------- ----------
Income before income taxes......................... 370,958 360,185 754,640 936,576
Income tax expense................................. 129,785 106,158 259,995 306,631
---------- ---------- ---------- ----------
Net income....................................... $ 241,173 $ 254,027 $ 494,645 $ 629,945
========== ========== ========== ==========
</TABLE>
<PAGE> 5
<TABLE>
<CAPTION>
PARK BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS
(DOLLARS IN THOUSANDS)
SIX MONTHS ENDED
JUNE 30,
--------------------------------------
1996 1995
----------------- -----------------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 494,645 $ 629,945
Adjustments to reconcile net income to net cash
from operating activities:
Net premium (discount) amortization 148,692 193,449
(Gain) loss on sale of real estate (42,754) (311,186)
Depreciation 84,000 66,000
Provision for loan losses -- 25,000
Gain on sale of securities -- (14,264)
Increase (decrease) in other assets and accrued interest receivable (89,945) 87,592
Increase (decrease) in other liabilities and accrued interest payable 99,894 315,303
----------- ----------
Net cash from operating activities 694,532 991,839
CASH FLOWS FROM INVESTING ACTIVITIES:
Net (increase) decrease in loans (2,262,926) (1,876,790)
Proceeds from sales/calls/maturities/
prepayment of available-for-sale securities 12,355,781 11,069,713
Proceeds from calls/maturities of held-to-maturity securities 19,580,231 3,414,502
Purchase of available-for-sale securities (25,432,051) (4,990,000)
Purchase of held-to-maturity securities (11,995,000) --
(Purchase) redemption of FHLB stock (80,300) (10,200)
Net (increase) decrease in real estate held for development 201,405 1,437,778
Expenditures for premises and equipment (446,158) (29,999)
----------- ----------
Net cash from (used in) investing activities (8,079,018) 9,015,004
CASH FLOWS FROM FINANCING ACTIVITIES:
Net increase (decrease) in deposits 2,157,094 4,383,506
Net decrease in T&I advances from borrowers 128,138 10,530
Net increase (decrease) in FHLB advances (6,000,000) (8,000,000)
----------- ----------
Net cash from (used in) financing activities (3,714,768) (3,605,964)
----------- ----------
Increase (decrease) in cash and cash equivalents (11,099,254) 6,400,879
Cash and cash equivalents at beginning of year 12,789,986 2,573,232
----------- ----------
Cash and cash equivalents at end of year $ 1,690,732 $8,974,111
=========== ==========
</TABLE>
<PAGE> 6
PARK BANCORP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accompanying consolidated financial statements include the accounts of Park
Bancorp, Inc. (the Company) and its wholly-owned subsidiary, Park Federal
Savings Bank. All significant intercompany accounts and transactions have been
eliminated in consolidation.
These interim financial statements are prepared without audit and reflect all
adjustments which, in the opinion of management, are necessary to present fairly
the consolidated financial position of the Company at June 30, 1996, and its
results of operations and statement of cash flows for the periods presented. All
such adjustments are normal and recurring in nature. The accompanying
consolidated financial statements do not purport to contain all the necessary
financial disclosures required by generally accepted accounting principles that
might otherwise be necessary in the circumstances and should be read in
conjunction with the consolidated financial statements and notes thereto of Park
Federal Savings Bank included in the June 26, 1996 Subscription and Community
Offering Prospectus.
The provision for income taxes is based upon the effective tax rate expected to
be applicable for the entire year.
NOTE 2 - ADOPTION OF PLAN OF CONVERSION
On March 21, 1996, the Board of Directors of the Bank adopted a Plan of
Conversion to convert from a federal mutual savings bank to a federal stock
savings bank with the concurrent formation of a holding company. The conversion
completed on August 9, 1996 through the amendment of the Bank's charter and the
sale of the holding company's common stock in an amount equal to the
consolidated pro forma market value of the holding company and the Bank after
giving effect to the conversion.
The Board of Directors of the Bank or the holding company intend to adopt an
Employee Stock Ownership Plan and various stock option and incentive plans,
subject to ratification by the stockholders of the holding company after
conversion, if such stockholder approval is required by any regulatory body
having jurisdiction to require such approval. In addition, the Board of
Directors is authorized to enter into employment contracts with key employees.
At the time of conversion, the Bank established a liquidation account in an
amount equal to its total net worth as of the latest statement of financial
condition appearing in the final
<PAGE> 7
PARK BANCORP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
NOTE 2 - ADOPTION OF PLAN OF CONVERSION (Continued)
prospectus. The liquidation account is maintained for the benefit of eligible
depositors who continue to maintain their accounts at the Bank after the
conversion. The liquidation account will be reduced annually to the extent that
eligible depositors have reduced their qualifying deposits. Subsequent increases
will not restore an eligible account holder's interest in the liquidation
account. In the event of a complete liquidation, each eligible depositor will be
entitled to receive a distribution from the liquidation account in an amount
proportionate to the current adjusted qualifying balances for accounts then
held. The liquidation account balance is not available for payment of dividends.
Subsequent to the conversion, the Bank may not declare or pay cash dividends on
or repurchase any of its shares of common stock, if the effect would cause
stockholder's equity to be reduced below applicable regulatory capital
maintenance requirements or if such declaration and payment would otherwise
violate regulatory requirements.
Conversion costs have been deferred and deducted from the proceeds of the shares
sold in the conversion.
NOTE 3 - RECAPITALIZATION OF SAIF
The deposits of savings associations, such as the Bank, are presently insured by
the Savings Association Insurance Fund (SAIF), which, along with the Bank
Insurance Fund (BIF), is one of the two insurance funds administered by the
Federal Deposit Insurance Corporation (FDIC). It is not anticipated that the
SAIF will be adequately recapitalized until 2002, absent a substantial increase
in premium rates or the imposition of special assessments or other significant
developments, such as a merger of the SAIF and the BIF. A recapitalization plan
under consideration by the Treasury Department, the FDIC, the Office of Thrift
Supervision (OTS) and the Congress provides for a special assessment of .85% to
.90% to be imposed on all SAIF insured deposits. No assurance can be given,
however, as to whether the recapitalization plan will be implemented.
<PAGE> 8
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS.
PARK BANCORP, INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS
The following discussion compares the financial condition of Park Bancorp, Inc.
and its wholly-owned subsidiary, Park Federal Savings Bank, at December 31, 1995
to June 30, 1996 and the results of operations for the three months ended June
30, 1996 and the six months ended June 30, 1996, with the same periods in 1995.
This discussion should be read in conjunction with the interim financial
statements and footnotes included herein.
FINANCIAL CONDITION
Total assets at June 30, 1996 were $155.2 million compared to $158.9 million at
December 31, 1995, a decrease of $3.7 million. The Bank increased the amount of
net loans receivable by $2.3 million from $60.5 million at December 31, 1995 to
$62.8 million at June 30, 1996 and decreased cash and cash equivalents by $11.1
million from $12.8 million at December 31, 1996 to $1.7 million at June 30,
1996. In addition, securities available-for-sale increased by $12.5 million to
$49.7 million at June 30, 1996, while securities held-to-maturity decreased by
$7.8 million during the same period.
Total liabilities at June 30, 1996 were $137.6 million compared to $141.4
million at December 31, 1995, a decrease of $3.8 million. Total deposits
increased by $2.2 million from $130.5 million at December 31, 1995 to $132.7
million at June 30, 1996 due principally to an increase in certificate and
savings accounts.
Equity at June 30, 1996 was $17.7 million compared to $17.5 million at December
31, 1996, an increase of $125,000, due to primarily to earnings of $495,000 for
the six months ended June 30, 1996, offset by a $370,000 increase in the
unrealized loss on securities available-for-sale.
RESULTS OF OPERATIONS
Net income decreased 5.1% from $254,000 for the quarter ended June 30, 1995 to
$241,000 for the quarter ended June 30, 1996. The net income for the six month
period was down 21.4% from $630,000 through June 30, 1995 to $495,000 through
June 30, 1996.
Net interest income remained relatively stable for the three month period ended
June 30, 1996 compared to the same period in 1995 and for the six month period
ended June 30, 1996 compared to the same period in 1995.
The provision for loan losses decreased $10,000 for the three month period ended
June 30, 1996 compared to the same period in 1995 and decreased $25,000 for the
six month period ended June 30, 1996 compared to the same period in 1995. This
decrease was based on management's assessment of risk factors, which affects the
allowance for loan losses. As of June 30, 1996, the allowance for loan losses
was approximately .79% of net loans receivable.
<PAGE> 9
Non-interest income for the Bank decreased from $95,000 for the three month
period ended June 30, 1995 to $80,000 for the same three month period in 1996.
This decrease was the result primarily of a decline in income from the sale of
real estate held for development as the Bank completed the Rose Hill project in
1995 and began its development activities in the Prairie Ridge project in 1996.
Non-interest income decreased from $403,000 for the six month period ended June
30, 1995 to $157,000 for the six month period ended June 30, 1996, also due
primarily to the decline in income from the sale of real estate held for
development.
Non-interest expense decreased from $770,000 for the three month period ended
June 30, 1995 to $760,000 for the three month period ended June 30, 1996. The
Bank's non-interest expense remained relatively stable for the six month period
ended June 30, 1995 compared to the six month period ended June 30, 1996.
The Bank's federal income tax expense increased from $106,000 for the three
month period ended June 30, 1995 to $130,000 for the three month period ended
June 30, 1996. The federal income tax expense for the six month period ended
June 30, 1995 of $307,000 decreased to $260,000 for the six month period ended
June 30, 1996. The changes in income tax for both periods was the result of
changes in net income before federal income tax expense.
LIQUIDITY
The Bank is required to maintain minimum levels of liquid assets as defined by
Bank regulators. The Bank's general objective for liquidity is to be above 8%;
however, the Bank's liquidity ratio does fluctuate, but has been in excess of
the required and targeted levels. The Bank's regulatory liquidity at June 30,
1996 was 48.8%.
At June 30, 1996, the Bank had $1.8 million in commitments to originate loans,
including standby letters of credit of $936,000.
The Bank is positioned to invest a portion of the funds acquired from the
proceeds of the conversion into lending opportunities as they become available.
Initially, it is expected the Bank's liquidity will rise after the conversion
until such lending opportunities occur. In the interim, the Bank will also
invest a portion of these funds in high grade, minimal risk, short-term
securities.
CAPITAL RESOURCES
The Bank is subject to three capital to asset requirements in accordance with
Bank regulations. The following table summarizes the Bank's regulatory capital
requirements versus actual capital as of June 30, 1996:
<TABLE>
<CAPTION>
ACTUAL REQUIRED EXCESS
------ -------- ------
AMOUNT % AMOUNT % AMOUNT %
------ - ------ - ------ -
(IN THOUSANDS)
--------------
<S> <C> <C> <C> <C> <C> <C>
Capital requirements:
Tangible.......... $16,485 10.7% $2,313 1.5% $14,172 9.2%
Core leverage capital 16,485 10.7 4,625 3.0 11,860 7.7
Risk-based capital 16,985 37.7 3,607 8.0 13,378 29.7
</TABLE>
<PAGE> 10
NEW ACCOUNTING STANDARDS
In May 1993, the Financial Accounting Standards Board ("FASB") issued SFAS No.
114, "Accounting by Creditors for Impairment of a Loan" ("SFAS No. 114"), which
was amended by SFAS No. 118. Under the provision of SFAS No. 114, as amended, a
loan is considered impaired when, based on current information and events, it is
probable that a creditor will be unable to collect all amounts due according to
the contractual terms of the loan agreement. SFAS No. 114 requires creditors to
measure impairment of a loan based on the present value of expected future cash
flows discounted at the loan's effective interest rate or, as a practical
expedient, at the loan's observable market price or the fair value of the
collateral if the loan is collateral dependent. If the measure of the impaired
loan is less than the recorded investment in the loan, a creditor shall
recognize an impairment by recording a valuation allowance with a corresponding
charge to the provision for loan losses. The Bank adopted the provisions of SFAS
No. 114 effective in 1995. The adoption of SFAS No. 114 did not have a material
impact on the results of operations or financial condition of the Bank.
In March 1995, the FASB issued Statement of Financial Accounting Standards No.
121 ("SFAS No. 121"), "Accounting for the Impairment of Long Lived Assets and
for Long Lived Assets to be Disposed Of." SFAS No. 121 requires that long lived
assets and certain identifiable intangibles be reviewed for impairment whenever
events or circumstances indicate that the carrying amount of an asset may not be
recoverable. However, SFAS No. 121 does not apply to financial instruments, core
deposit intangibles, mortgage and other servicing rights or deferred tax assets.
The adoption of SFAS No. 121 in 1996 did not have a material effect on the
Bank's income or financial condition.
In May 1995, the FASB issued Statement of Financial Accounting Standards No. 122
("SFAS No. 122"), "Accounting for Mortgage Servicing Rights." SFAS No. 122
requires an institution that purchases or originates mortgage loans and sells or
securitizes those loans with servicing rights retained to allocate the total
cost of the mortgage loans to the mortgage servicing rights and the loans
(without the mortgage servicing rights) based on their relative fair values. In
addition, institutions are required to assess impairment of the capitalized
mortgage servicing portfolio based on the fair value of those rights. SFAS No.
122 is effective for fiscal years beginning after December 15, 1995. Adoption of
this statement did not have a material impact on the Bank's earnings or
financial condition. SFAS 122 will be superseded by SFAS No. 125 after December
31, 1996.
In November 1995, the FASB issued Statement of Financial Accounting Standards
No. 123, "Accounting for Stock Based Compensation," ("SFAS No. 123"). This
statement establishes financial accounting standards for stock-based employee
compensation plans. SFAS No. 123 permits the Bank to choose either a new fair
value based method or the current APB Opinion 25 intrinsic value based method of
accounting for its stock-based compensation arrangements. SFAS No. 123 requires
pro forma disclosures of net earnings and earnings per share computed as if the
fair value based method had been applied in financial statements of companies
that continue to follow current practice in accounting for such arrangements
under Option 25. The disclosure provisions of SFAS No. 123 are effective for
fiscal years beginning after December 15, 1995. Any effect that this statement
will have on the Bank will be applicable upon the consummation of the
Conversion.
<PAGE> 11
In June 1996, the Financial Accounting Standards Board released Statement of
Financial Accounting Standard No. 125, "Accounting for Transfers and
Extinguishments of Liabilities". SFAS No. 125 provides accounting and reporting
standards for transfers and servicing of financial assets and extinguishments of
liabilities. SFAS No. 125 requires a consistent application of a financial-
components approach that focuses on control. Under that approach, after the
transfer of financial assets, an entity recognizes the financial and servicing
assets its controls and the liabilities it has incurred, and derecognizes
liabilities when extinguished. SFAS 125 also supercedes SFAS 122 and requires
that servicing assets and liabilities be subsequently measured by amortization
in proportion to and over the period of estimated net servicing income or loss
and requires assessment for asset impairment or increases obligation based on
their fair values. SFAS No. 125 applies to transfers and extinguishments
occurring after December 31, 1996 and early or retroactive application is not
permitted. Management anticipates that the adoption of SFAS No. 125 will not
have a material impact on the financial condition or operations of the Bank.
LEGISLATIVE MATTERS
Legislation is pending in Congress to mitigate the effect of the Bank
Insurance Fund ("BIF") Savings Association Insurance Fund ("SAIF") premium
disparity. Under the legislation a special assessment would be imposed on the
amount of deposits held by SAIF- member institutions, including the Bank, as of
a specified date, currently March 31, 1995, to recapitalize the SAIF. The amount
of the special assessment would be left to the discretion of the FDIC but is
generally estimated at between 79 to 85 basis points of insured deposits. The
legislation would also require that the BIF and SAIF be merged, provided that
subsequent legislation is enacted requiring federal savings associations to
become national banks or state chartered banks or thrifts, and that the
Financing Insurance Company ("FICO") payments be spread across all BIF and SAIF
members. The payment of the special assessment would have the effect of
immediately reducing the capital of SAIF-member institutions, net of any tax
effect; however, it would not affect the Bank's compliance with its regulatory
capital requirements. Management cannot predict whether legislation imposing
such an assessment will be enacted, or, if enacted, the specific terms of such
legislation including the amount of any special assessment and when and whether
ongoing SAIF premiums will be reduced to a level equal to that of BIF premiums.
Management can also not predict whether or when the BIF and SAIF will merge. A
significant increase in SAIF insurance premiums or a significant special
assessment to recapitalize the SAIF would likely have an adverse effect on the
operating expenses of the Company. The assessment of an 79 to 85 basis point fee
to recapitalize the SAIF would result in a $956,000 to $1.0 million payment on
an after-tax basis.
Legislation regarding bad debt recapture has been passed by Congress and
sent to the President for signature. The legislation requires recapture of
reserves accumulated after 1987. The recapture tax on post 1987 reserves must be
paid over a six year period starting in 1996. The payment of the tax can be
deferred in each of 1996 and 1997 if an institution originates at least the same
average annual principal amount of mortgage loans that it originated in the six
years prior to 1996. Management has not assessed the impact of this legislation
on the operations of the Company.
No assurance can be given as to whether legislation as discussed above will
be enacted or, if enacted, what the terms of such legislation would be.
<PAGE> 12
PART II -- OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS.
None
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 - Not applicable.
3.1 Certificate of Incorportion of Park Bancorp, Inc.*
3.2 Bylaws of Park Bancorp, Inc.*
27 Financial Data Schedule
(b) Reports on Form 8-K. No reports on Form 8-K were filed
by the Registrant during the quarter ended June 30, 1996.
---------------------------
* Incorporated herein by reference into this document from
Exhibits to Form S-1, Registration Statement, filed May 2,
1996, as amended, Registation No. 333-4380.
<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.
PARK BANCORP, INC.
/s/ David A. Remijas
--------------------------------------
Date: August 14, 1996 David A. Remijas
President and Chief Executive Officer
/s/ Steven J. Pokrak
-------------------------------------
Date: August 14, 1996 Steven J. Pokrak
Treasurer and Chief Financial Officer
<TABLE> <S> <C>
<ARTICLE> 9
<LEGEND>
This schedule contains summary information extracted from the Form 10-Q and is
qualified in its entirety by reference to such financial statements.
</LEGEND>
<CIK> 0001013554
<NAME> PARK BANCORP INC.
<CURRENCY> U.S. DOLLARS
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> JUN-30-1996
<EXCHANGE-RATE> 1
<CASH> 550,336
<INT-BEARING-DEPOSITS> 1,140,396
<FED-FUNDS-SOLD> 0
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 49,652,927
<INVESTMENTS-CARRYING> 34,713,947
<INVESTMENTS-MARKET> 34,304,120
<LOANS> 62,801,173
<ALLOWANCE> 500,000
<TOTAL-ASSETS> 155,215,372
<DEPOSITS> 132,660,086
<SHORT-TERM> 3,000,000
<LIABILITIES-OTHER> 1,897,193
<LONG-TERM> 0
0
0
<COMMON> 0
<OTHER-SE> 17,658,093
<TOTAL-LIABILITIES-AND-EQUITY> 155,215,372
<INTEREST-LOAN> 2,651,738
<INTEREST-INVEST> 2,603,551
<INTEREST-OTHER> 0
<INTEREST-TOTAL> 5,255,289
<INTEREST-DEPOSIT> 3,108,512
<INTEREST-EXPENSE> 3,113,753
<INTEREST-INCOME-NET> 2,141,536
<LOAN-LOSSES> 0
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<EXPENSE-OTHER> 144,929
<INCOME-PRETAX> 1,543,767
<INCOME-PRE-EXTRAORDINARY> 1,543,767
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 494,645
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
<YIELD-ACTUAL> 2.53
<LOANS-NON> 212,968
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<ALLOWANCE-OPEN> 573,057
<CHARGE-OFFS> 73,057
<RECOVERIES> 0
<ALLOWANCE-CLOSE> 500,000
<ALLOWANCE-DOMESTIC> 0
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 500,000
</TABLE>
