<PAGE>
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON D.C. 20549
FORM 10-QSB
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 1997
[ ] 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 0-21163
---------------
CBES BANCORP,INC.
-----------------------------------------------------------------
(Exact name of small business issuer as specified in its charter)
DELAWARE 43-1753244
--------------------------------------------------------------
(State or other jurisdiction of incorporation or organization)
(IRS Employer Identification No.)
1001 N. JESSE JAMES ROAD, EXCELSIOR SPRINGS, MO 64024
-----------------------------------------------------
(Address of principal executive offices)
(816 630-6711)
--------------
(Issuer's telephone number)
NOT APPLICABLE
----------------------------------------------------
(Former name, former address and former fiscal year,
if changed since last report)
Check whether the issuer (1) filed all reports required to be filed by Section
13 or 15(d) of the Exchange Act during the past 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 equity, as of the last practicable date:
Class Outstanding at November 10, 1997
- --------------------------------- --------------------------------
Common stock, .01 par value 1,024,958
<PAGE>
CBES BANCORP,INC. AND SUBSIDIARIES
TABLE OF CONTENTS
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements:
Consolidated Statements of Financial Condition at
September 30, 1997 (unaudited) and June 30, 1997........1
Consolidated Statements of Earnings for the three
months ended September 30, 1997 and 1996 (unaudited)....2
Consolidated Statements of Stockholders' Equity for
the three months ended September 30, 1997 (unaudited)...3
Consolidated Statements of Cash Flows for the three
months ended September 30, 1997 and 1996 (unaudited)....4
Notes to Consolidated Financial Statements (unaudited)....5
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations.......................6
PART II - OTHER INFORMATION...........................................11
SIGNATURES............................................................12
<PAGE>
1
CBES BANCORP,INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
SEPTEMBER 30, 1997 AND JUNE 30, 1997
<TABLE>
<CAPTION>
September 30, June 30
Assets 1997 1997
------ --------------- ------------
(unaudited)
<S> <C> <C>
Cash $ 631,689 $ 588,056
Interest-bearing deposits in other financial institutions 3,936,161 3,544,294
Investment securities available-for-sale (amortized cost of
$1,000,375 and $1,000,750 respectively) 998,200 996,320
Investment securities held-to-maturity 100,000 100,000
Mortgage-backed securities held-to-maturity (estimated fair value
of $107,523 and $156,176 respectively) 105,196 154,352
Loans held-for-sale, net 845,672 696,617
Loans receivable, net 95,241,917 90,320,430
Accrued interest receivable:
Loans receivable 726,812 688,408
Investment securities 6,495 20,028
Mortgage-backed securities 1,399 1,697
Real Estate Owned 267,928 168,204
Stock in Federal Home Loan Bank (FHLB), at cost 810,700 810,700
Office property and equipment, net 1,274,501 1,237,823
Deferred income tax benefit - 7,000
Cash surrender value of life insurance and other assets 1,688,576 1,742,557
----------- ------------
Total assets $106,635,246 $101,076,486
============ ============
Liabilities and Stockholders' Equity
------------------------------------
Liabilities:
Deposits $ 76,580,946 70,692,900
FHLB advances and other borrowings 9,750,000 10,750,000
Accrued expenses and other liabilities 807,791 741,009
Accrued interest payable on deposits 97,694 97,966
Advance payments by borrowers for property taxes and insurance 964,487 725,518
Current income taxes payable 380,115 294,604
Deferred income taxes 14,647 -
------------ -----------
Total liabilities 88,595,680 83,301,997
------------ -----------
Stockholders' equity:
Preferred stock, $.01 par, 500,000 shares authorized, none
issued or outstanding - -
Common stock, $.01 par; 3,500,000 shares authorized, 1,024,958
shares issued and outstanding 10,250 10,250
Additional paid-in capital 9,752,028 9,728,357
Retained earnings, substantially restricted 8,988,283 8,777,980
Unrealized losses on available-for-sale securities, net of tax) (1,305) (2,658
Unearned employee benefits) (709,690) (739,440
------------ -----------
Total stockholders' equity 18,039,566 17,774,489
------------ -----------
Total liabilities and stockholders' equity $106,635,246 101,076,486
============ ============
</TABLE>
See accompanying notes to unaudited consolidated financial statements.
<PAGE>
2
CBES BANCORP,INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
(UNAUDITED)
<TABLE>
<CAPTION>
Three Months Ended
September 30
---------------------
1997 1996
---------- ---------
<S> <C> <C>
Interest income:
Loans receivable $2,100,811 1,747,374
Mortgage-backed securities 1,938 5,945
Investment securities 11,398 26,767
Loans held-for-sale 15,943 13,680
Other 37,876 20,401
---------- ---------
Total interest income 2,167,966 1,814,167
---------- ---------
Interest expense:
Deposits 882,891 761,056
FHLB advances 135,494 179,434
---------- ---------
Total interest expense 1,018,385 940,490
---------- ---------
Net interest income 1,149,581 873,677
Provision for loan losses 79,978 18,338
---------- ---------
Net interest income after
provision for loan losses 1,069,603 855,339
---------- ---------
Noninterest income:
Gain on sale of loans, net 56,735 48,377
Customer service charges 61,816 51,861
Loan servicing fees 17,780 20,793
Other 34,547 32,218
---------- ---------
Total noninterest income 170,878 153,249
---------- ---------
Noninterest expense:
Compensation and benefits 418,007 307,067
Office property and equipment 79,494 71,145
Data processing 38,673 45,501
Federal insurance premiums 11,413 492,269
Advertising 10,967 9,611
Real estate owned and repossessed
assets 27,931 6,878
Other 157,878 112,840
---------- ---------
Total noninterest expense 744,363 1,045,311
---------- ---------
Earnings before income
taxes 496,118 (36,723)
Income tax expense 191,256 (18,921)
---------- ---------
Net earnings $ 304,862 (17,802)
========== =========
Earnings per share $.32 (.02)
========== =========
Average common shares outstanding 952,357 942,962
========== =========
</TABLE>
See accompanying notes to unaudited consolidated financial statements.
<PAGE>
3
CBES BANCORP,INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
Net
Additional unrealized Unearned Total
Outstanding Common paid-in Retained gain (loss) employee stockholders'
shares stock capital earnings on securities benefits equity
----------- ------ ---------- --------- ------------- -------- ------------
<S> <C> <C> <C> <C> <C> <C> <C>
Balance at June 30, 1997 1,024,958 $10,250 9,728,357 8,777,980 (2,658) (739,440) 17,774,489
Net earnings - - - 304,862 - - 304,862
Dividends declared - - - (94,559) - - (94,559)
($.10 per share payable
October 21, 1997)
Change in unrealized loss
on securities available-
for-sale, net of tax - - - - 1,353 - 1,353
Allocation of ESOP shares - - 23,671 - - 29,750 53,421
--------- ------- --------- --------- ------ -------- ----------
Balance at
September 30, 1997 1,024,958 $10,250 9,752,028 8,988,283 (1,305) (709,690) 18,039,566
========= ======= ========= ========= ====== ======== ==========
</TABLE>
See accompanying notes to unaudited consolidated financial statements.
<PAGE>
4
CBES BANCORP,INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 1997 AND 1996
(UNAUDITED)
<TABLE>
<CAPTION>
1997 1996
------------- ------------
<S> <C> <C>
Cash flows from operating activities:
Net earnings $ 304,862 (17,802)
Adjustments to reconcile net earnings to net cash provided by
operating activities:
Provision for loan losses 79,978 18,338
Depreciation 41,050 35,493
Allocation of ESOP shares 53,421 -
Proceeds from sale of loans held for sale 3,098,557 3,634,378
Originations of loans held for sale (3,190,877) (3,312,000)
Gain on sale of loans, net (56,735) (48,378)
Premium amortization and accretion of discounts and
deferred loan fees (108,706) (80,970)
Deferred income taxes 20,745 24,061
Changes in assets and liabilities:
Accrued interest receivable (24,573) (14,961)
Other assets 53,981 (299,552)
Accrued expenses and other liabilities 66,782 361,676
Accrued interest payable on deposits (272) 4,780
Current income taxes payable 85,511 (106,803)
----------- -----------
Net cash provided by operating activities 423,724 198,260
----------- -----------
Cash flows from investing activities:
Net increase in loans receivable (4,992,108) (2,272,381)
Mortgage-backed securities principal repayments 49,156 12,412
Purchase of office property and equipment (77,728) (39,260)
----------- -----------
Net cash used in by investing activities $(5,020,680) (2,299,229)
----------- -----------
Cash flows from financing activities:
Increase (decrease) in deposits $ 5,888,046 (2,525,989)
Proceeds from FHLB advances 2,500,000 11,000,000
Repayments of FHLB advances (3,500,000) (11,000,000)
Increase in advance payments by borrowers for property taxes
and insurance 238,969 232,821
Issuance of common stock, net of issuance costs of $512,500 - 8,917,120
Dividends paid (94,559) -
----------- -----------
Net cash provided by financing activities 5,032,456 6,623,952
----------- -----------
Net increase in cash and cash equivalents 435,500 4,522,983
Cash and cash equivalents at the beginning of the period 4,132,350 3,459,359
----------- -----------
Cash and cash equivalents at the end of the period $ 4,567,850 7,982,342
=========== ===========
Supplemental disclosure of cash flow information:
Cash paid during the period for income taxes $ 85,000 63,821
=========== ===========
Cash paid during the period for interest $ 1,018,113 935,710
=========== ===========
Supplemental schedule of noncash investing and financing activities:
Conversion of loans to real estate owned $ 99,724 -
=========== ===========
Dividends declared and payable October 21, 1997 $ 94,559 -
=========== ===========
</TABLE>
See accompanying notes to unaudited consolidated financial statements.
<PAGE>
5
CBES BANCORP,INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
SEPTEMBER 30, 1997
(1) CBES BANCORP,INC. AND SUBSIDIARIES
----------------------------------
CBES Bancorp, Inc. (the Company) was incorporated under the laws of the state of
Delaware for the purpose of becoming the savings and loan holding company of
Community Bank of Excelsior Springs, a Savings Bank (the Bank) in connection
with the Bank's conversion from a federally chartered mutual savings bank to a
federally chartered stock savings bank, pursuant to its Plan of Conversion. On
August 12, 1996, the Company commenced a Subscription and Community Offering of
its shares in connection with the conversion of the Bank (the Offering). The
Offering was consummated and the Company acquired the Bank on September 27,
1996. The Company had no assets prior to the conversion and acquisition on
September 27, 1996.
(2) BASIS OF PREPARATION
--------------------
The accompanying unaudited consolidated financial statements were prepared
in accordance with instructions for Form 10-QSB. To the extent that
information and footnotes required by generally accepted accounting principles
for complete financial statements are contained in or consistent with the
audited financial statements incorporated by reference in the Company's Annual
Report on Form 10-KSB for the year ended June 30, 1997, such information and
footnotes have not been duplicated herein. In the opinion of management, all
adjustments, consisting only of normal recurring accruals, which are necessary
for the fair presentation of the interim financial statements have been
included. The statement of earnings for the three month period ended September
30, 1997 is not necessarily indicative of the results which may be expected for
the entire year. The June 30, 1997 consolidated balance sheet has been derived
from the audited consolidated financial statements as of that date.
(3) PRO FORMA EARNINGS PER SHARE
----------------------------
On September 27, 1996, 1,024,958 shares of the Company's stock were issued,
including 81,996 shares issued to the ESOP. Earnings per share of common stock
have been determined by dividing net earnings for the period by the weighted
average number of shares of common stock outstanding, less unallocated ESOP
shares.
(4) EMPLOYEE STOCK OWNERSHIP PLAN
-----------------------------
All employees meeting age and service requirements are eligible to participate
in an ESOP established on September 27, 1996. Contributions made by the Bank to
the ESOP are allocated to participants by a formula based on compensation.
Participant benefits become 100% vested after five years. The ESOP purchased
81,996 shares in the Bank's conversion. The ESOP expense for the three months
ended September 30, 1997 was $53,421.
<PAGE>
6
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following discussion compares the financial condition of CBES Bancorp,Inc.
and its wholly-owned subsidiary, Community Bank of Excelsior Springs, a Savings
Bank, (collectively the Bank) at September 30, 1997 to the financial condition
at June 30, 1997, its fiscal year-end, and the results of operations for the
three months ended September 30, 1997, with the same periods in 1996. This
discussion should be read in conjunction with the interim financial statements
and notes which are included herein.
GENERAL
- -------
CBES Bancorp,Inc. was organized as a Delaware corporation in June 1996 to
acquire all of the capital stock issued by Community Bank of Excelsior Springs,
a Savings Bank upon its conversion from the mutual to stock form of ownership.
Community Bank of Excelsior Springs, a Savings Bank was founded in 1931 as a
Missouri chartered savings and loan association located in Excelsior Springs,
Missouri. In 1995, its members voted to convert to a federal charter. The
business of the holding company consists primarily of the business of the Bank.
The Bank conducts its business through its main office in Excelsior Springs,
Clay County, Missouri and its full service branch office located in Kearney,
Clay County, Missouri. The Bank plans to open a full service branch office in
Liberty, Missouri in early 1998. The Bank has been, and intends to continue to
be, a community oriented financial institution offering selected financial
services to meet the needs of the community it serves. The Bank attracts
deposits from the general public and historically has used such deposits,
together with other funds, primarily to originate one-to-four family residential
mortgage loans, construction and land loans for single-family residential
properties, and consumer loans consisting primarily of loans secured by
automobiles. While the Bank's primary business has been that of a traditional
thrift institution, originating loans in its primary market area for retention
in its portfolio, the Bank also has been an active participant in the secondary
market, originating residential mortgage loans for sale.
The most significant outside factors influencing the operations of the Bank and
other financial institutions include general economic conditions, competition in
the local market place and the related monetary and fiscal policies of agencies
that regulate financial institutions. More specifically, the cost of funds
primarily consisting of insured deposits is influenced by interest rates on
competing investments and general market rates of interest, while lending
activities are influenced by the demand for real estate financing and other
types of loans, which in turn is affected by the interest rates at which such
loans may be offered and other factors affecting loan demand and funds
availability.
The deposits of the Bank are presently insured by the Savings Association
Insurance Fund ("SAIF"), which together with the Bank Insurance Fund ("BIF") are
the two insurance funds administered by the FDIC. In the third calendar quarter
of 1995, the FDIC lowered the premium schedule for BIF-insured institutions in
anticipation of the BIF achieving its
<PAGE>
7
statutory reserve ratio. The reduced premium created a significant
disparity in deposit insurance expense causing a competitive advantage for BIF
members. Legislation enacted on September 30, 1996 provided for a one-time
special assessment of .657% of the Bank's SAIF insured deposits at March 31,
1995. The purpose of the assessment was to bring the SAIF to its statutory
reserve ratio. Based on the above formula, the Bank charged $441,000 against
earnings for the quarter ended September 30, 1996. Although the special one-
time assessment significantly increased noninterest expense for that quarter,
the anticipated reduction in the premium schedule will reduce the Bank's federal
insurance premiums for the future periods.
Congress may consider legislation requiring all federal thrift institutions,
such as the Bank, to either convert to a national bank or a state depository
institution by January 1, 1999. In addition, the Company might no longer be
regulated as a thrift holding company, but rather as a bank holding company.
The Office of Thrift Supervision (OTS) also might be abolished and its functions
transferred among the federal banking regulators.
Certain aspects of the legislation remain to be resolved and, therefore, no
assurance can be given as to whether or in what form the legislation will be
enacted or its effect on the Company and the Bank.
FINANCIAL CONDITION
- -------------------
Total assets increased $5.6 million, or 5.5%, to $106.6 at September 30, 1997
from $101.1 million at June 30, 1997. This was primarily due to an increase in
loans receivable, net of $5.1 million, which were funded with deposits.
Loans receivable, net increased by $5.1 million, or 5.6%, to $96.1 million at
September 30, 1997 from $91.0 million at June 30, 1997 primarily due to an
increase in one-to-four family portfolio loans of $2.3 million, an increase in
one-to-four family construction loans of $1.9 million, and an increase in five-
or-more dwelling portfolio loans of $1.0 million.
Deposits increased $5.9 million, or 8.3%, to $76.6 million at September 30, 1997
from $70.7 million at June 30, 1997. The increase in deposits is due to $5.9
million in new certificates of deposit.
FHLB advances decreased $1.0 million, or 9.3%, to $9.8 million at September 30,
1997 from $10.8 million at June 30, 1997. The decrease is primarily due to $1.0
million in new certificates of deposit being used to pay down FHLB advances.
Total equity increased $0.3 million, or 1.5%, to $18.0 million at September 30,
1997 primarily due to earnings for the quarter ended September 30, 1997 of $0.3
million.
<PAGE>
8
COMPARISON OF OPERATING RESULTS FOR THE THREE MONTHS ENDED MARCH 31, 1997 AND
- -----------------------------------------------------------------------------
1996
- ----
Performance Summary. For the three months ended September 30, 1997, the Company
had net earnings of $305,000 compared to a net loss of $18,000 for the quarter
ended September 30, 1996. The increase in earnings was primarily due to an
increase in interest income of $354,000, and a decrease in non-interest expense
of $301,000, offset by an increase in interest expense of $78,000, an increase
in the provision for loan losses of $62,000, and an increase in income taxes of
$210,000.
Net Interest Income. For the three months ended September 30, 1997, net
interest income increased by $276,000, or 31.6%, to $1,150,000 from $874,000 for
the three months ended September 30, 1996. The increase reflected an increase
of $354,000 in interest income, to $2,168,000 from $1,814,000, and an increase
of $78,000 in interest expense to $1,018,000 from $940,000.
Provision for Loan Losses. During the three months ended September 30, 1997,
the Bank charged $80,000 against earnings as a provision for loan losses
compared to a provision of $18,000 for the three months ended September 30,
1996. The increase in provision for loan losses is a result of an overall
increase in the loan portfolio, and in particular one-to-four family
construction loans, one-to-four family portfolio loans, and five-or-more
dwelling loans. This charge resulted in an allowance for loan losses of
$511,000 or .54% of loans receivable, net at September 30, 1997 compared to
$436,000, or .48% of loans receivable, net at June 30, 1997. The allowance for
loan losses is based on a detailed review of nonperforming and other problem
loans, prevailing economic conditions, actual loss experience and other factors
which, in management's view, recognize the changing composition of the Bank's
loan portfolio and the inherent risk associated with different types of loans.
Management will continue to monitor its allowance for loan losses and make
future additions to the allowance through the provision for loan losses as
economic conditions dictate. Although the Bank maintains its allowance for loan
losses at a level which it considers to be adequate to provide for potential
losses, there can be no assurance that future losses will not exceed estimated
amounts or that additional provisions for loan losses will not be required in
future periods.
Non-Interest Income. For the three months ended September 30, 1997, non-
interest income increased $18,000 to $171,000 from $153,000 for the prior year
period primarily due to an increase in the gain on sale of loans, net,of $8,000,
and an increase in customer service charges of $10,000 during the three months
ended September 30, 1997.
Non-Interest Expense. Non-interest expense decreased by $301,000 to $744,000
for the three months ended September 30, 1997 from $1,045,000 for the three
months ended September 30, 1996. During the quarter ended September 30, 1996,
the company paid a $441,000 one-time special SAIF assessment. Personnel costs
increased $111,000 in 1997 compared to 1996, primarily due to expense associated
with the ESOP plan and new employees.
<PAGE>
9
NONPERFOMING ASSETS
- -------------------
On September 30, 1997, nonperforming assets were $630,000 compared to $1,157,000
on June 30, 1997. The balance of the Bank's allowance for loan losses was
$511,000 or 81.1% of nonperforming assets. Loans are considered nonperforming
when the collection of principal and/or interest is not probable, or in the
event payments are more than ninety days delinquent.
CAPITAL RESOURCES
- -----------------
The Bank is subject to three capital to asset requirements in accordance with
Office of Thrift Supervision regulations. The following table is a summary of
the Bank's regulatory capital requirements versus actual capital as of September
30, 1997:
Actual Required Excess
amount/percent amount/percent amount/percent
-------------- -------------- --------------
(Dollars in thousands)
Tangible $12,883 12.09% $1,599 1.50% $11,284 10.59%
Core leverage capital 12,883 12.09% 3,199 3.00% 9,684 9.09%
Risk-based capital 13,243 15.10% 7,017 8.00% 6,226 7.10%
LIQUIDITY
- ---------
The Bank's principal sources of funds are deposits, principal and interest
payments on loans, deposits in other insured institutions and investment
securities classified as available-for-sale. While scheduled loan repayments
and maturing investments are relatively predictable, deposit flows and early
loan prepayments are more influenced by interest rates, general economic
conditions and competition. Additional sources of funds may be obtained from
the Federal Home Loan Bank of Des Moines by utilizing numerous available
products to meet funding needs.
The Bank is required to maintain levels of liquid assets as defined by
regulations. The required percentage is currently 5% of net withdrawable
savings deposits and borrowings payable on demand or in one year or less. The
eligible liquidity ratios at September 30, 1997 and June 30, 1997 were 6.38% and
6.37%, respectively.
In light of the competition for deposits, the Bank may utilize the funding
sources of the Federal Home Loan Bank to meet demand in accordance with the
Bank's growth plans. The wholesale funding sources may allow the Bank to obtain
a lower cost of funding and create a more efficient liability match to the
respective assets being funded. Given the current strong loan demand, it may be
necessary for the Bank to continue to use advances.
For purposes of the cash flow statements, all short-term investments with a
maturity of three months or less at date of purchase are considered cash
equivalents. Cash and cash equivalents at September 30, 1997 and 1996 were $4.6
million and $8.0 million respectively.
<PAGE>
10
Cash flows from operating activities. Net cash provided by operating activities
increased to $424,000 for the three months ended September 30, 1997 from
$198,000 for the three months ended September 30, 1996. The increase was
primarily due to an increase in net earnings of $323,000, an increase in the
change in other assets of $354,000, an increase in the change in current income
taxes payable of $192,000, and a decrease in originations of loans held-for-sale
of $121,000, offset by a decrease in the proceeds from the sale of loans held-
for-sale of $536,000, and a decrease in the change in accrued expenses and other
liabiities of $295,000.
Cash flows from investing activities. Net cash used in investing activities
was $5.0 million during the three months ended September 30, 1997 compared to
$2.3 million provided by investing activities during the same period in 1996.
The change was primarily due to an increase in loans receivable of $5.0 million
during the three months ended September 30, 1997 from a $2.3 million increase
during the same period in 1996.
Cash flows from financing activities. Net cash provided by financing activities
was $5.0 million for the three months ended September 30, 1997 compared to $6.6
million during the same period in 1996. The decrease in cash flows from
financing activities is primarily due to an increase in deposits of $8.4
million.
IMPACT OF RECENTLY ISSUED ACCOUNTING STANDARDS
- ----------------------------------------------
In February 1997, the Financial Accounting Standards Board issued Statement No.
128, "Earnings Per Share" which revises the calculation and presentation
provisions of Accounting Principles Board Opinion 15 and related
interpretations. Statement No. 128 is effective for financial statements for
both interim and annual periods ending after December 15, 1997. Retroactive
application will be required. The Company believes the adoption of Statement
No. 128 will not have a significant effect on its reported earnings per share.
<PAGE>
11
PART II - OTHER INFORMATION
Item 1. Legal Proceedings
The holding company and the Bank are not involved in any pending
legal proceedings incident to the business of the holding company
and the Bank, which involve amounts in the aggregate which management
believes are material to the financial condition and results of
operation.
Item 2. Changes in Securities
---------------------
Not applicable.
Item 3. Defaults Upon Senior Securities
-------------------------------
Not applicable.
Item 4. Submission of Matters to a Vote of Security Holders
---------------------------------------------------
Not applicable.
Item 5. Other Information
-----------------
None.
Item 6. Exhibits and Reports on Form 8-K
--------------------------------
Exhibits
27-Financial Data Schedule
<PAGE>
12
SIGNATURES
----------
Pursuant to the requirement 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.
CBES Bancorp, Inc. and Subsidiaries
-----------------------------------
(Registrant)
Date: 11-10-97
-----------------------------------------------
By: /s/ Larry E. Hermreck
-----------------------------------------------
Larry E. Hermreck, Chief Executive
Officer and Secretary (Duly Authorized Officer)
Date: November 10, 1997
-----------------------------------------------
By: /s/ Dennis D. Hartman
-----------------------------------------------
Dennis D. Hartman, Controller and
Chief Financial Officer (Principal
Financial Officer)
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 9
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> JUN-30-1998
<PERIOD-END> SEP-30-1997
<CASH> 631,689
<INT-BEARING-DEPOSITS> 3,936,161
<FED-FUNDS-SOLD> 0
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 998,200
<INVESTMENTS-CARRYING> 205,196
<INVESTMENTS-MARKET> 207,523
<LOANS> 96,087,589
<ALLOWANCE> 511,000
<TOTAL-ASSETS> 106,635,246
<DEPOSITS> 76,580,946
<SHORT-TERM> 9,750,000
<LIABILITIES-OTHER> 807,791
<LONG-TERM> 0
0
0
<COMMON> 10,250
<OTHER-SE> 18,039,566
<TOTAL-LIABILITIES-AND-EQUITY> 106,635,246
<INTEREST-LOAN> 2,116,754
<INTEREST-INVEST> 13,336
<INTEREST-OTHER> 37,876
<INTEREST-TOTAL> 2,167,966
<INTEREST-DEPOSIT> 882,891
<INTEREST-EXPENSE> 1,018,385
<INTEREST-INCOME-NET> 1,149,581
<LOAN-LOSSES> 79,978
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<EXPENSE-OTHER> 157,878
<INCOME-PRETAX> 496,118
<INCOME-PRE-EXTRAORDINARY> 304,862
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<CHANGES> 0
<NET-INCOME> 304,862
<EPS-PRIMARY> 0.32
<EPS-DILUTED> 0.32
<YIELD-ACTUAL> 8.74
<LOANS-NON> 630,000
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<ALLOWANCE-OPEN> 436,000
<CHARGE-OFFS> 12,581
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<ALLOWANCE-CLOSE> 511,000
<ALLOWANCE-DOMESTIC> 511,000
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
