SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D)
OF THE SECURITIES EXCHANGE ACTIVITIES OF 1934
For the quarterly period ended June 30, 1998
PARK BANCORP, INC.
(Exact name of registrant as specified in its charter)
DELAWARE
(State of incorporation)
36-4082530
(IRS Employer Identification No.)
5400 SOUTH PULASKI ROAD, CHICAGO, ILLINOIS
(Address of Principal Executive Offices)
60632
(ZIP Code)
(773) 582-8616
(Registrant's telephone number, including area code)
Indicate by check mark whether the Registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the Registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
Yes X No _______
Indicate the number of shares outstanding of each of the issuer's classes of
common stock as of the latest practicable date.
As of June 30, 1998, the Registrant had outstanding 2,332,649 shares of common
stock.
THE FORMATTING OF THIS REPORT SHOULD STAY AS IS
<PAGE>
PARK BANCORP, INC.
Form 10-Q Quarterly Report
Index
<TABLE>
<S> <C>
PAGE
PART I - Financial Information
Item 1 Financial Statements 1
Item 2 Management's Discussion and Analysis of
Financial Condition and Results of Operations 7
Item 3 Quantitative and Qualitative Disclosures About Market Risks 9
PART II - Other Information
Item 1 Legal Proceedings 11
Item 2 Changes in Securities 11
Item 3 Defaults Upon Senior Securities 11
Item 4 Submission of Matters to a Vote of Securities Holders 11
Item 5 Other Information 11
Item 6 Exhibits and Reports on Form 8-K 11
SIGNATURES 12
</TABLE>
<PAGE>
PARK BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(IN THOUSANDS)
<TABLE>
<S> <C> <C>
JUNE 30, DECEMBER 31,
1998 1997
---- ----
ASSETS
Cash and due from banks $ 829 $ 1,119
Interest-bearing deposit accounts in other financial institutions 10,491 6,693
------------ ------------
Total cash and cash equivalents 11,320 7,812
Securities available-for-sale 28,646 37,101
Securities held-to-maturity (fair value: 1998 - $73,267; 1997 - $55,684) 73,155 55,736
Loans receivable, net 74,363 68,327
Federal Home Loan Bank stock 804 841
Real estate held for development 3,257 2,270
Premises and equipment, net 2,526 2,489
Other real estate - 60
Accrued interest receivable 2,025 1,542
Other assets 717 494
------------ ------------
TOTAL ASSETS $ 196,813 $ 176,672
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES
Deposits $ 138,419 $ 131,865
Securities sold under repurchase agreements 6,034 4,250
Advances from borrowers for taxes and insurance 1,448 1,387
Federal Home Loan Bank advances 10,000 -
Accrued interest payable 191 175
Other liabilities 696 394
------------ ------------
Total liabilities 156,788 138,071
STOCKHOLDERS' EQUITY
Preferred stock, $.01 par value, 1,000,000 shares authorized
and unissued - -
Common stock, $.01 par value, 9,000,000 shares authorized;
2,701,441 shares issued 27 27
Additional paid-in capital 26,297 26,222
Retained earnings 21,160 20,060
Unearned ESOP shares (1,718) (1,807)
Unearned MRP shares (1,080) (1,226)
Treasury stock at cost - 283,652 shares (4,693) (4,693)
Unrealized gain on securities available-for-sale, net of taxes 32 18
------------ ------------
Total stockholders' equity 40,025 38,601
------------ ------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 196,813 $ 176,672
============ ============
<PAGE>
PARK BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED INCOME STATEMENT
(IN THOUSANDS)
<S> <C> <C> <C> <C>
THREE MONTHS SIX MONTHS
ENDED JUNE 30, ENDED JUNE 30,
1998 1997 1998 1997
Interest income:
Loans receivable $ 1,557 $ 1,396 $ 3,052 $ 2,800
Securities 1,933 1,734 3,881 3,480
---------- ---------- ---------- ----------
Total 3,490 3,130 6,933 6,280
Interest expense:
Deposits 1,699 1,493 3,368 2,991
Federal Home Loan Bank advances 119 50 231 121
Other borrowings - 59 - 59
---------- ---------- ---------- ----------
Total 1,818 1,602 3,599 3,171
---------- ---------- ---------- ----------
Net interest income 1,672 1,528 3,334 3,109
Provision for loan losses - - - -
---------- ---------- ---------- ----------
Net interest income after provision for
loan losses 1,672 1,528 3,334 3,109
Noninterest income:
Gain on sale of real estate held for development 231 80 455 125
Gain on sale of securities available-for-sale 1 - 4 -
Service fee income 54 23 94 59
Other operating income 2 113 16 120
---------- ---------- ---------- ----------
Total noninterest income 288 216 569 304
Noninterest expense:
Compensation and benefits 719 645 1,402 1,236
Occupancy and equipment expense 130 114 264 234
Advertising 61 46 111 69
Other operating expense 213 245 425 436
---------- ---------- ---------- ----------
Total noninterest expense 1,123 1,050 2,202 1,975
---------- ---------- ---------- ----------
Income before income taxes 837 694 1,701 1,438
Income tax expense 306 234 601 487
---------- ---------- ---------- ----------
Net income $ 531 $ 460 $ 1,100 $ 951
========== ========== ========== ==========
Basic earnings per share $ .25 $ .20 $ .51 $ .40
========= ========== ========== ==========
Diluted earnings per share $ .24 $ .20 $ .50 $ .40
========= ========== ========== ==========
</TABLE>
<PAGE>
PARK BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(IN THOUSANDS)
<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS ENDED
JUNE 30,
1998 1997
---- ----
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 1,100 $ 951
Adjustments to reconcile net income to net cash from
operating activities:
Net discount accretion on securities (31) (1)
Gain on sale of securities available-for-sale (4) -
Loss on sale of real estate owned 6 -
Gain on sale of real estate held for development (455) (125)
Depreciation 162 90
ESOP compensation expense 164 148
MRP compensation expense 146 267
Net change in:
Accrued interest receivable (483) 114
Accrued interest payable 16 20
Other assets (223) (291)
Other liabilities 295 842
----------- -----------
Net cash from operating activities 693 2,015
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of securities available-for-sale (8,964) (3,972)
Purchase of securities held-to-maturity (40,238) (7,000)
Proceeds from sales, calls, and maturities of securities available- for-sale 15,946 6,731
Proceeds from maturities and calls of securities held-to-maturity 21,000 5,443
Principal repayments on mortgage-backed securities 3,348 -
Net change in loans (6,036) (1,797)
Net change in FHLB stock 37 (85)
Net change in real estate held for development (532) 357
Proceeds from sale of real estate owned 54 -
Purchase of premises and equipment (199) (332)
----------- -----------
Net cash from investing activities (15,584) (655)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net change in deposits 6,554 (1,638)
Net change in repurchase agreements 1,784 -
Net change in advances from borrowers for taxes and insurance 61 81
Net change in Federal Home Loan Bank advances 10,000 (3,000)
Net change in other borrowings - 4,000
Purchase of treasury stock - (4,219)
----------- -----------
Net cash from financing activities 18,399 (4,776)
----------- -----------
Net change in cash and cash equivalents 3,508 (3,416)
Cash and cash equivalents at beginning of period 7,812 6,213
----------- -----------
Cash and cash equivalents at end of period $ 11,320 $ 2,797
=========== ===========
Cash paid during the period for
Interest $ 3,352 $ 3,130
Income taxes 445 540
</TABLE>
<PAGE>
PARK BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
(IN THOUSANDS)
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Unrealized
Gain (Loss)
Additional Unearned Unearned on Securities Stock-
Common Paid-in Retained ESOP MRP Treasury Available- holders'
STOCK CAPITAL EARNINGS SHARES AWARDS STOCK FOR-SALE EQUITY
Balance at January 1, 1997 $ 27 $ 26,088 $ 18,518 (1,994) $ - $ - $(182) $ 42,457
Net income - - 951 - - - - 951
Change in fair value of
securities classified as
available-for-sale, net of income tax - - - - - - (51) (51)
-----------
Comprehensive income 900
Purchase of treasury stock - - - - - (4,219) - (4,219)
Grant of stock awards under Management
Recognition Plan (MRP) 1,701 - - (1,701) - - -
ESOP shares earned - 54 - 94 - - - 148
MRP shares earned - - - - 267 - - 267
----------- ----------- ---------- --------- -------- --------- --------- -----------
Balance at June 30, 1997 $ 27 $ 27,843 $ 19,469 $ (1,900)$ (1,434) $ (4,219) $ (233) $ 39,553
=========== =========== =========== ========= ======== ======== ========== ===========
Balance at January 1, 1998 $ 27 $ 26,222 $ 20,060 $ (1,807)$ (1,226) $ (4,693) $ 18 $ 38,601
Net income - - 1,100 - - - - 1,100
Change in fair value of
securities classified
as available-for-sale,
net of income tax - - - - - - 14 14
-----------
Comprehensive income 1,114
ESOP shares earned - 75 - 89 - - - 164
MRP shares earned - - - - 146 - - 146
----------- ----------- ----------- --------- -------- --------- --------- -----------
Balance at June 30, 1998 $ 27 $ 26,297 $ 21,160 $ (1,718)$ (1,080)$ (4,693) $ 32 $ 40,025
=========== =========== =========== ========= ======== ========= ========= ===========
</TABLE>
<PAGE>
PARK BANCORP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
JUNE 30, 1998
Note 1 - Basis of Presentation
The accompanying unaudited consolidated financial statements include the
accounts of Park Bancorp, Inc. (Corporation) and its wholly-owned subsidiaries,
Park Federal Savings Bank (Bank) and PFI Development Corporation, and the Bank's
subsidiaries, as of June 30, 1998 and December 31, 1997 and for the six-month
periods ended June 30, 1998 and 1997, respectively. Material intercompany
accounts and transactions have been eliminated in consolidation.
The accompanying unaudited consolidated financial statements have been prepared
in accordance with generally accepted accounting principles for interim
financial information and with the instructions to Form 10-Q and Article 10 of
Regulation S-X. Accordingly, they do not include all of the information and
footnotes required by generally accepted accounting principles for complete
financial statements. In the opinion of management, all necessary adjustments,
consisting only of normal recurring accruals necessary for a fair presentation,
have been included. The results of operations for the six-month period ended
June 30, 1998 are not necessarily indicative of the results that may be expected
for the entire calendar year. These unaudited consolidated financial statements
should be read in conjunction with the consolidated financial statements for the
year ended December 31, 1997 and the notes thereto.
Note 2 - Summary of Significant Accounting Policies
SECURITIES: Securities are classified as held to maturity and carried at
amortized cost when management has the positive intent and ability to hold them
to maturity. Securities are classified as available for sale when they might be
sold before maturity. Securities available for sale are carried at fair value,
with unrealized holding gains and losses reported separately in shareholders'
equity, net of tax. Realized gains are based on specific identification of
amortized cost Interest income includes amortization of purchase premium or
discount.
LOANS: Loans are reported at the principal balance outstanding, net of unearned
interest, deferred loan fees and costs, and an allowance for loan losses.
Interest income is reported on the interest method and includes amortization of
net deferred loan fees and costs over the loan term.
ALLOWANCE FOR LOAN LOSSES: The allowance for loan losses is a valuation
allowance for probable credit losses, increased by the provision for loan losses
and decreased by charge-offs less recoveries. Management estimates the allowance
balance required based on past loan loss experience, known and inherent risks in
the portfolio, information about specific borrower situations and estimated
collateral values, economic conditions, and other factors. Allocations of the
allowance may be made for specific loans, but the entire allowance is available
for any loan that, in management's judgment, should be charged-off.
EARNINGS PER SHARE: Basic and diluted earnings per share are computed under a
new accounting standard which became effective during the quarter ended December
31, 1997. All prior amounts have been restated to be comparable. Basic earnings
per share is based on net income divided by weighted average number of shares
outstanding during the period. Diluted earnings per share shows the dilutive
effect of additional common shares issuable under stock options and unearned
Management Recognition Plan (MRP) shares.
<PAGE>
Note 3 - Earnings Per Share
The following table presents a reconciliation of the components used to compute
basic and diluted earnings per share for the three and six-month periods ended
June 30, 1998 and 1997.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
1998 1997
---- ----
Three Months Six Months Three Months Six Months
ENDED JUNE 30 ENDED JUNE 30 ENDED JUNE 30 ENDED JUNE 30
------------- ------------- ------------- -------------
Net income as reported $ 531 $ 1,100 $ 460 $ 951
Weighted average common
shares outstanding 2,158,650 2,156,418 2,239,125 2,363,598
----------- ----------- ----------- -----------
Basic earnings per share $ .25 $ .51 $ .20 $ .40
=========== ========== =========== ===========
Net income available to
common shareholders $ 531 $ 1,100 $ 460 $ 951
Weighted average common
shares outstanding 2,158,650 2,156,418 2,239,125 2,363,598
Dilutive effect of MRP 7,539 7,447 - -
Dilutive effect of stock options 34,128 34,497 - -
----------- ----------- ----------- -----------
2,200,317 2,198,362 2,239,125 2,363,598
----------- ----------- ----------- -----------
Diluted earnings per share $ .24 $ .50 $ .20 $ .40
=========== ========== =========== ===========
</TABLE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
The following discussion compares the financial condition of Park Bancorp, Inc.
and its wholly-owned subsidiary, Park Federal Savings Bank, at June 30, 1998 to
its financial condition at December 31, 1997 and the results of operations for
the three and six-month periods ended June 30, 1998 to the same period in 1997.
This discussion should be read in conjunction with the interim financial
statements and footnotes included herein.
FINANCIAL CONDITION
Total assets at June 30, 1998 were $196.8 million compared to $176.7 million at
December 31, 1997, an increase of $20.1 million. During the six months ended
June 30, 1998, loans increased $6.0 million while securities increased $9.0
million. This was funded by $10.0 million of advances from the Federal Home Loan
Bank of Chicago (FHLB) and deposit growth of $6.6 million.
Total liabilities at June 30, 1998 were $156.8 million compared to $138.1
million at December 31, 1997, an increase of $18.7 million. Borrowings increased
$11.8 million at June 30, 1998, due to a $10 million increase in FHLB advances
and a $1.8 million increase in repurchase agreements. Total deposits increased
approximately $6.6 million during the period. Management attributes the growth
to the new deposit products offered.
Stockholders' equity at June 30, 1998 was $40.0 million compared to $38.6
million at December 31, 1997, an increase of $1.4 million. This increase
was primarily attributable to the year-to-date net income of $1.1 million.
RESULTS OF OPERATIONS
Net income increased $71,000, or 15.4%, to $531,000 for the quarter ended June
30, 1998 compared to the same period in 1997. Net income also increased
$149,000, or 15.7%, to $1.1 million for the six months ended June 30, 1998
compared to the six months ended June 30, 1997.
Net interest income increased $144,000, or 9.4%, for the quarter ended June 30,
1998 compared to the same period in 1997. Net interest income also increased
$225,000, or 7.2%, for the six-month period ended June 30, 1998 compared to the
same period in 1997. Both increases are attributable primarily to growth in the
average balance of loans and securities.
Noninterest income increased $72,000 and $265,000 to $288,000 and $569,000 for
the three and six-month periods ended June 30, 1998 compared to the same periods
in 1997. These increases were primarily due to gains from the sale of real
estate held for development from the Bank's project in Naperville, Illinois.
Noninterest expense increased to $1.1 million for the quarter ended June 30,
1998 from $1.0 million for the quarter ended June 30, 1997. Noninterest expense
increased to $2.2 million for the six-month period ended June 30, 1998 from $2.0
million for the comparable period in 1997. Both increases are primarily a result
of increased compensation expense as a result of staff increases and MRP
expenses, advertising, and other costs associated with operating as a public
company.
The Corporation's federal income tax expense increased $72,000, or 30.8%, to
$306,000 for the quarter ended June 30, 1998 compared to the same period in 1997
while income tax expense increased $114,000, or 23.4% to $601,000 for the
six-month period ended June 30, 1998 compared to the same period in 1997. Both
increases are attributable to the increase in income before income taxes.
LIQUIDITY
The Bank is required to maintain minimum levels of liquid assets as defined by
Bank regulators. 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, 1998 was 52.0%.
At June 30, 1998, the Bank had $2.1 million in commitments to originate loans
and $399,000 in standby letters of credit.
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, 1998:
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
ACTUAL REQUIRED EXCESS
AMOUNT % AMOUNT % AMOUNT %
Core leverage capital $ 23,172 12.8% $ 7,240 4.0% $ 15,932 8.8%
Risk-based capital 23,672 35.6 5,322 8.0 18,350 27.6
</TABLE>
NEW ACCOUNTING STANDARDS
Statement of Financial Accounting Standards (SFAS) No. 130, Reporting
Comprehensive Income, became effective during the first quarter of 1998 and
requires that all components of comprehensive income be presented in a separate
statement. Disclosures of the components of comprehensive income are included in
the Consolidated Statements of Stockholder's Equity.
SFAS No. 131, Disclosures about Segments of an Enterprise and Related
Information, will also become effective during 1998. SFAS No. 131 establishes
standards for the way public companies report information about its operating
segments and requires that these standards be adhered to for interim reporting
as well. SFAS No. 131 requires companies to provide more descriptive disclosures
about its operating segments including the way in which the segment was
determined, the products and services provided by the segment, and the profit or
loss generated by the segment. Management does not anticipate that SFAS No. 131
will have a significant impact on the Corporation's results of operations or
capital.
SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION
REFORM ACT OF 1995
This report contains certain forward-looking statements within the meaning of
Section 27a of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. The Corporation intends such
forward-looking statements to be covered by the safe harbor provisions for
forward-looking statements contained in the Private Securities Reform Act of
1995, and is including this statement for purposes of these safe harbor
provisions. Forward-looking statements, which are based on certain assumptions
and describe future plans, strategies and expectations of the Corporation, are
generally identifiable by use of the words "believe", "expect", "intend",
"anticipate", "estimate", "project", or similar expressions. The Corporation's
ability to predict results or the actual effect of future plans or strategies is
inherently uncertain. Factors which could have a material adverse affect on the
operations and future prospects of the Corporation and its wholly-owned
subsidiary include, but are not limited to, changes in: interest rates; general
economic conditions; legislative/regulatory provisions; monetary and fiscal
policies of the U.S. Government, including policies of the U.S. Treasury and the
Federal Reserve Board; the quality or composition of the loan or investment
portfolios; demand for loan products; deposit flows; competition; demand for
financial services in the Corporation's market area; and accounting principles,
policies, and guidelines. These risks and uncertainties should be considered in
evaluating forward-looking statements and undue reliance should not be placed on
such statements. Further information concerning the Corporation and its
business, including additional factors that could materially affect the
Corporation's financial results, is included in the Corporation's filings with
the SEC.
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
The principal objective of the Bank's interest rate risk management function is
to evaluate the interest rate risk included in certain balance sheet accounts;
determine the level of risk appropriate given the Bank's business focus,
operating environment, capital and liquidity requirements, and performance
objectives; and manage the risk consistent with Board approved guidelines.
Through such management, the Bank seeks to reduce the vulnerability of its
operations to changes in interest rates. The Bank monitors its interest rate
risk as such risk relates to its operating strategies. The Bank's executive
committee meets regularly and reviews the Bank's interest rate risk position and
makes recommendations for adjusting such position. In addition, the Bank's Board
of Directors reviews on a quarterly basis the Bank's asset/liability position,
including simulations of the effect on the Bank's capital of various interest
rate scenarios.
The Bank's interest rate sensitivity is monitored by management through the use
of a model which estimates the change in net portfolio value ("NPV") over a
range of interest rate scenarios. NPV is the present value of expected cash
flows from assets, liabilities, and off-balance-sheet contracts. An NPV Ratio,
in any interest rate scenario, is defined as the NPV in that scenario divided by
the market value of assets in the same scenario. The Sensitivity Measure is the
decline in the NPV Ratio, in basis points, caused by a 2% increase or decrease
in rates, whichever produces a larger decline. The higher an institution's
Sensitivity Measure is, the greater its exposure to interest rate risk is
considered to be. The Bank utilizes a market value model prepared by the OTS
(the "OTS NPV model"), which is prepared quarterly, based on the Bank's
quarterly Thrift Financial Reports filed with the OTS. The OTS NPV model
measures the Bank's interest rate risk by approximating the Bank's NPV, which is
the net present value of expected cash flows from assets, liabilities, and any
off-balance-sheet contracts, under various market interest rate scenarios which
range from a 400 basis point increase to a 400 basis point decrease in market
interest rates. The interest rate risk policy of the Bank provides that the
maximum permissible change at a 400 basis point increase or decrease in market
interest rates is a 90% change in the net portfolio value. The OTS has
incorporated an interest rate risk component into its regulatory capital rule.
Under the rule, an institution whose sensitivity measure exceeds 2% would be
required to deduct an interest rate risk component in calculating its total
capital for purpose of the risk-based capital requirement. As of December 31,
1997, the Bank's sensitivity measure, as measured by the OTS, resulting from a
200 basis point increase in interest rates was (0.92)% and would result in a
$2.2 million reduction in the NPV of the Bank. Accordingly, increases in
interest rates would be expected to have a negative impact on the Bank's
operating results. The NPV Ratio sensitivity measure is below the threshold at
which the Bank could be required to hold additional risk-based capital under OTS
regulations.
Certain shortcomings are inherent in the methodology used in the above interest
rate risk measurements. Modeling changes in NPV requires the making of certain
assumptions that may tend to oversimplify the manner in which actual yields and
costs respond to changes in market interest rates. First, the models assume that
the composition of the Bank's interest sensitive assets and liabilities existing
at the beginning of a period remains constant over the period being measured.
Second, the models assume that a particular change in interest rates is
reflected uniformly across the yield curve regardless of the duration to
maturity or repricing of specific assets and liabilities. Third, the model does
not take into account the impact of the Bank's business or strategic plans on
the structure of interest-earning assets and interest-bearing liabilities.
Accordingly, although the NPV measurement provides an indication of the Bank's
interest rate risk exposure at a particular point in time, such measurement is
not intended to and does not provide a precise forecast of the effect of changes
in market interest rates on the Bank's net interest income and will differ from
actual results. The results of this modeling are monitored by management and
presented to the Board of Directors, quarterly.
The following table shows the NPV and projected change in the NPV of the
Bank at March 31, 1998 assuming an instantaneous and sustained change in
market interest rates of 100, 200, 300, and 400 basis points.
<TABLE>
<CAPTION>
INTEREST RATE SENSITIVITY OF NET PORTFOLIO VALUE (NPV)
<S> <C> <C> <C> <C> <C>
NPV as a % of
--------------NET PORTFOLIO VALUE------------ -----------PV OF ASSETS---------
CHANGE IN RATES $ AMOUNT $ CHANGE % CHANGE NPV RATIO CHANGE
--------------- -------- -------- -------- --------- ------
+ 400 bp $ 24,264 $ (6,360) (21.0)% 13.62% - 264 bp
+ 300 bp 25,994 (4,630) (15.0) 14.38 - 188 bp
+ 200 bp 27,718 (2,906) (9.0) 15.11 - 115 bp
+ 100 bp 29,342 (1,282) (4.0) 15.77 - 49 bp
0 bp 30,624 - - 16.26 -
- 100 bp 31,469 845 3.0 16.54 + 28 bp
- 200 bp 31,702 1,078 4.0 16.55 + 29 bp
- 300 bp 32,905 2,281 7.0 16.62 + 36 bp
- 400 bp 32,970 2,346 8.0 16.89 + 63 bp
</TABLE>
Management has not yet completed the computation of NPV as of June 30,
1998 but estimates that the results would not be materially different than
those presented above.
<PAGE>
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 SECURITIES HOLDERS.
None
ITEM 5. OTHER INFORMATION.
None
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K.
(a) Exhibits - Not applicable.
(b) Reports on Form 8-K. No reports on Form 8-K were filed by
the registrant during the quarter ended June 30, 1998.
<PAGE>
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.
Date: August 7, 1998 /S/ DAVID A. REMIJAS
--------------------
David A. Remijas
President and Chief
Executive Officer
Date: August 7, 1998 /S/ STEVEN J. POKRAK
--------------------
Steven J. Pokrak
Treasurer and Chief
Financial Officer
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 9
<CIK> 0001013554
<NAME> PARK BANCORP, INC.
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JUN-01-1998
<PERIOD-END> JUN-30-1998
<CASH> 829
<INT-BEARING-DEPOSITS> 10,491
<FED-FUNDS-SOLD> 0
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 28,646
<INVESTMENTS-CARRYING> 0
<INVESTMENTS-MARKET> 0
<LOANS> 74,863
<ALLOWANCE> 500
<TOTAL-ASSETS> 196,813
<DEPOSITS> 137,636
<SHORT-TERM> 16,034
<LIABILITIES-OTHER> 3,118
<LONG-TERM> 0
0
0
<COMMON> 27
<OTHER-SE> 39,998
<TOTAL-LIABILITIES-AND-EQUITY> 196,813
<INTEREST-LOAN> 3,052
<INTEREST-INVEST> 3,881
<INTEREST-OTHER> 0
<INTEREST-TOTAL> 6,933
<INTEREST-DEPOSIT> 3,368
<INTEREST-EXPENSE> 3,599
<INTEREST-INCOME-NET> 3,334
<LOAN-LOSSES> 0
<SECURITIES-GAINS> 4
<EXPENSE-OTHER> 2,202
<INCOME-PRETAX> 1,701
<INCOME-PRE-EXTRAORDINARY> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,100
<EPS-PRIMARY> .51
<EPS-DILUTED> .50
<YIELD-ACTUAL> 0
<LOANS-NON> 0
<LOANS-PAST> 0
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 500
<CHARGE-OFFS> 0
<RECOVERIES> 0
<ALLOWANCE-CLOSE> 500
<ALLOWANCE-DOMESTIC> 0
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 500
</TABLE>
