UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-QSB
X QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
- ---- EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 1998
TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE
ACT
- ----
For the transition period from ________ to ________.
Commission file number: 333-17227
Vermilion Bancorp, Inc.
- -----------------------------------------------------------------
- -----
(Exact name of small business issuer as specified in its
charter)
Delaware 37-1363755
- --------------------------------- -----------------------------
(State or other jurisdiction of (IRS Employer Identification
incorporation or organization) Number)
714 North Vermilion Street, Danville, Illinois 61832
- -----------------------------------------------------------------
(Address of principal executive offices)
(217) 442-0270
- -----------------------------------------------------------------
(Issuer's telephone number)
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 __
---
369,595 shares of the registrant's common stock, par value
$0.01 per share, were outstanding at April 2, 1998.
Transitional Small Business Disclosure Format (check one)
Yes ___ NO X
___
<PAGE>
VERMILION BANCORP, INC.
TABLE OF CONTENTS
Part 1. Financial Information
Item 1. Financial Statements
Item 2. Management's Discussion and Analysis of
Financial
Condition and Results of Operations
Part 2. Other Information
Item 1. Legal Proceedings
Item 2. Changes in Securities and Use of Proceeds
Item 3. Defaults Upon Senior Securities
Item 4. Submission of Matters to a Vote of Security
Holders
Item 5. Other Information
Item 6. Exhibits and Reports on Form 8-K
Signatures
<PAGE>
Part 1. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
VERMILION BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEET
(UNAUDITED)
MAR. 31 SEP. 30
1998 1997
_______ _______
Assets
Cash and due from banks $ 43,426 $ 55,354
Interest-bearing demand deposits 1,924,646 1,082,543
Cash and cash equivalents 1,968,072 1,137,897
Interest-bearing time deposits 119,000 99,000
Investment securities:
Available for sale 3,105,691 3,115,652
Held to maturity 2,694,994 3,000,155
Total investment securities 5,800,685 6,115,807
Loans 31,530,503 29,563,296
Allowance for loan losses (150,765) (151,868)
Net loans 31,379,738 29,411,428
Premises and equipment 564,676 460,617
Federal Home Loan Bank stock 283,200 283,200
Other Assets 382,850 308,126
Other real estate owned 0 0
Total assets $40,498,221 $37,816,075
Liabilities
Deposits:
Noninterest-bearing $ 313,668 $ 285,753
Interest-bearing 28,825,511 28,811,931
Total deposits 29,139,179 29,097,684
Federal Home Loan Bank borrowings 5,000,000 2,600,000
Other liabilities 225,276 163,259
Total liabilities 34,364,455 31,860,943
Stockholders' Equity
Preferred stock, $0.01 par value
Authorized and unissued-400,000 shares 0 0
Common stock, $0.01par value
Authorized- 1,600,000 shares
Issued- 396,750
Outstanding- 368,537 and 367,479 shares 3,968 3,968
Paid-in-capital 3,622,479 3,614,922
Retained earnings 2,770,166 2,622,516
Less:
Net unrealized gain on securities
available for sale 11,348 6,437
Unearned employee stock ownership plan shares (274,195) (292,711)
Total stockholders' equity 6,133,766 5,955,132
Total liabilities and
stockholders' equity $40,498,221 $37,816,075
See notes to unaudited consolidated financial statements
<PAGE>
VERMILION BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENT OF INCOME
(UNAUDITED)
Six Months Ended
March 31,
------------------
1998 1997
____ ____
Interest Income
Loans receivable $1,253,546 $1,147,574
Investment securities 194,740 204,590
Deposits with financial Institutions 29,241 25,888
Total interest income 1,477,527 1,378,052
Interest Expense
Deposits 776,043 836,237
Federal Home Loan Bank Borrowings 90,503 58,948
Total interest expense 866,546 895,185
Net Interest Income 610,981 482,867
Provision for losses on loans 25,000 2,000
Net Interest Income After Provision for Losses on Loans 585,981 480,867
Noninterest Income
Loan Fees 15,498 10,035
Other Income 12,085 10,419
Total noninterest income 27,583 20,454
Noninterst Expense
Salaries and employee benefits 174,520 229,433
Net occupancy expenses 48,607 55,227
Data processing fees 29,481 21,644
Deposit Insurance Expense 9,140 4,936
Printing and office supplies 6,519 8,059
Legal and professional fees 60,413 25,263
Advertising and promotion 5,624 7,715
Director and committee fees 18,250 18,900
Other expenses 54,860 52,142
Total noninterest expense 407,414 423,319
Income Before Income Tax 206,150 78,002
Income tax expense 58,500 10,000
Net Income $147,650 $ 68,002
Per Share data:
Basic and diluted $0.40 N/A
Weighted average shares outstanding 369,049 N/A
See notes to unaudited consolidated financial statements
<PAGE>
VERMILION BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENT OF INCOME
(UNAUDITED)
Three Months Ended
March 31,
------------------
1998 1997
____ ____
Interest Income
Loans receivable $ 636,863 $ 529,310
Investment securities 96,860 164,277
Deposits with financial Institutions 18,886 11,154
Total interest income 752,609 704,741
Interest Expense
Deposits 383,318 414,503
Federal Home Loan Bank Borrowings 52,726 29,150
Total interest expense 436,044 443,653
Net Interest Income 316,565 261,088
Provision for losses on loans 15,000 2,000
Net Interest Income After Provision for Losses on Loans 301,565 259,088
Noninterest Income
Loan Fees 7,714 6,957
Other Income 7,920 4,971
Total noninterest income 15,634 11,928
Noninterst Expense
Salaries and employee benefits 85,868 142,319
Net occupancy expenses 23,097 23,735
Data processing fees 15,283 12,795
Deposit Insurance Expense 4,536 4,936
Printing and office supplies 4,267 5,232
Legal and professional fees 18,189 4,203
Advertising and promotion 2,737 2,846
Director and committee fees 9,500 8,850
Other expenses 31,278 32,088
Total noninterest expense 194,755 237,004
Income Before Income Tax 122,444 34,012
Income tax expense 42,000 4,000
Net Income $80,444 $ 30,012
Per Share data:
Basic and diluted $0.22 N/A
Weighted average shares outstanding 368,638 N/A
See notes to unaudited consolidated financial statements
<PAGE>
VERMILION BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENT OF CASH FLOWS
(UNAUDITED)
Six Months Ended
March 31,
------------------
1998 1997
---- ----
Operating Activities
Net Income $147,650 $ 68,002
Adjustments to reconcile net income to net
cash provided by operating activities:
Provision for loan losses 25,000 2,000
Investment securities amortization (accretion), net (3,668) (8,376)
Depreciation 18,474 18,474
Allocation of ESOP shares 26,072 0
Net change in:
Other asset (74,724) 34,553
Other liabilities 62,017 (195,929)
Net cash used by operating activities 200,821 (81,276)
Investing Activities
Purchases of securities available for sale 0 (450,000)
Purchase of Deposits with Financial Institutions (20,000) 0
Proceeds from maturities and principal payments of
securities available for sale 14,996 1,069,534
Proceeds from maturities and principal payments of
securities held to maturity 308,706 781,599
Net change in loans (1,993,310) (471,911)
Purchase of premises and equipment (122,533) (3,664)
Purchase of Federal Home Loan Bank stock 0 0
Net cash provided by investing activities (1,812,141) 925,558
Financing Activities
Net change in deposits 41,495 258,402
Proceeds of Federal Home Loan Bank borrowings 2,400,000 0
Issuance of common stock 0 3,318,649
Net cash provided by financing activities 2,441,495 3,577,051
Net Change in Cash and Cash Equivalents 830,175 4,421,333
Cash and Cash Equivalents, Beginning of Period 1,137,897 789,198
Cash and Cash Equivalents, End of Period $1,968,072 $5,210,531
Additional Cash Flows Information
Interest paid $776,481 $895,663
Income tax paid $30,000 $27,000
See notes to unaudited consolidated financial statements
<PAGE>
VERMILION BANCORP, INC. AND SUBSIDIARY
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
1. BACKGROUND INFORMATION
Vermilion Bancorp, Inc. (the "Company") was incorporated on November 13,
1996 and on March 25, 1997 acquired all of the outstanding shares ofcommon stock
of American Savings Bank of Danville (the "Bank") upon the Bank's conversion
from a state chartered mutual savings bank to a state chartered stock savings
bank. The Company purchased 100% of the outstanding capital stock of the Bank
using 75% of the net proceeds from the Company's initial stock offering, which
was completed on March 25, 1997. Accordingly, the data relating to the period
prior to March 25, 1997 represents the consolidated data of the Bank and its
subsidiary. The data subsequent to March 25, 1997 represents the consolidated
data of the Company and the Bank. The Company sold 396,750 shares of common
stock in the initial offering at $10 per share, including 31,740 shares
purchased by the Bank's Employee Stock Ownership Plan ("ESOP"). The ESOP shares
were acquired by the Bank with proceeds from a Company loan totaling $317,400.
The net proceeds of the offering totaled $3,632,522: $3,967,500 less $334,978 in
underwriting commissions and other expenses.
The acquisition of the Bank by the Company is being accounted for as a
"pooling-of-interests" under generally accepted accounting principles. The
application of the pooling-of-interests method records the assets and
liabilities of the merged companies on a historical cost basis with no goodwill
or other intangible assets being recorded.
2. STATEMENT OF INFORMATION FURNISHED
The accompanying unaudited consolidated financial statements have been
prepared in accordance with Form 10-QSB instructions and Item 310(b) of
Regulation S-B, and in the opinion of management contain all adjustments
necessary to present fairly the financial position as of March 31, 1998 and
September 30, 1997, the results of operations for the six months ended
March 31, 1998 and 1997, the results of operations for the three months ended
March 31, 1998 and 1997, and the cash flows for the six months ended
March 31, 1998 and 1997. All adjustments to the financial statements were
normal and recurring in nature. These results have been determined on the
basis of generally accepted accounting principles. The results of operations
for the six months ended March 31, 1998 are not necessarily indicative of
the results to be expected for the entire fiscal year.
The consolidated financial statements are those of the Company and the
Bank. These consolidated financial statements should be read in conjunction
with the audited financial statements and notes thereto dated October 17, 1997
included in the Company's 1997 Annual Report to Shareholders.
3. EARNINGS PER SHARE
During the fiscal quarter ended March 31, 1998, the Company adopted SFAS
No. 128, "Earnings Per Share", issued by the Financial Accounting Standard
Board. SFAS No. 128 establishes standards for computing and presenting earnings
per share (EPS) and applies to entities with publicly held common stock or
potential common stock. SFAS No. 128 simplifies previous standards for computing
EPS. SFAS No. 128 is effective for financial statements issued for periods
ending after December 15, 1997, including interim periods; earlier application
is not permitted. SFAS No. 128 requires restatement of all prior period EPS data
presented. Management does not anticipate that this will have a material impact
on its EPS disclosures.
Net earnings per share are computed based upon the weighted average common
and common equivalent shares outstanding for periods subsequent to the Bank's
conversion to a stock savings bank on March 25, 1997, less unreleased shares
of the Company's ESOP. The number of shares used to calculate earnings per
share were 369,049.
PART 1. FINANCIAL INFORMATION
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Vermilion Bancorp, Inc. (the "Company") is the holding company for American
Savings Bank of Danville (the "Bank"). The Bank operates a wholly owned
subsidiary, GBW Service Corporation, which services contract sales of real
estate. Prior to the Company's acquisition of the Bank on March 25, 1997, the
Company had no material assets or operations. Accordingly, the following
information reflects management's discussion and analysis of the financial
condition and results of operations for the Bank at and for the period prior to
March 25, 1997.
FINANCIAL CONDITION
Total assets increased $2.7 million from September 30, 1997 to March 31,
1998 or 7.1% reflecting an increase in net loans of $2.0 million and an increase
in interest bearing demand deposits of $842,000 offset by a $305,000 reduction
in held to maturity investment securities.
Cash and cash equivalents increased $830,000 from September 30, 1997 to
March 31, 1998 or 73.0%. This reflects the balance of the monies borrowed from
the FHLB that will be used to fund future loan growth.
The $315,000 or 5.2% decline in total investment securities from
September 30, 1997 to March 31, 1998 was the result of management's continued
emphasis on reinvesting proceeds from investment security pay-downs and
maturities into the Bank's loan portfolio. Interest-bearing time
deposits increased $20,000 or 20.2% for the same period.
The $2.0 million increase in net loans from September 30, 1997 to
March 31, 1998 was the result of an increase of $1.4 million or 5.6% in
one-to-four family residential mortgage loans, an increase of $6,000
or 1.3% in commercial loans and an increase of $158,000 or 10.1% in
consumer loans and a increase of $559,000 or 55.5% in nonfarm-nonresidential
real estate loans somewhat offset by a decrease of $121,000 or 11.2% in
multi-family real estate loans. This is the result of management's emphasis
on the Bank's loan portfolio as previously mentioned.
Premises and equipment increased $104,000 or 22.6% from September 30,
1997 to March 31, 1998 which was a result of energy saving expenditures and
remodeling of the bank building which are reflected in the $6,000 decrease
in office occupancy expense.
FHLB borrowings increased $2.4 million or 92.3% from $2.6 million at
September 30, 1997 to $5.0 million at March 31, 1998. Additional FHLB
borrowings were used to feed loan portfolio growth. Borrowings increased
because of favorable rates relative to deposit rates.
Other liabilities increased $62,000 or 38.0% fromSeptember 30, 1997
to March 31, 1998 primarily as a result of taxes payable.
Total stockholders' equity increased $179,000 from September 30,
1997 to March 31, 1998, the increase summarized as follows:
Stockholders' equity, September 30, 1997..........................$5,955,132
Net income........................................................ 147,650
Change in unrealized gain/(loss) on securities Available for sale. 4,911
ESOP shares allocated............................................. 26,073
----------
Stockholders' equity, March 31,1998............................ $6,133,766
----------
----------
RESULTS OF OPERATIONS
SIX MONTH COMPARISON
Net income was $147,650 for the six months ended March 31, 1998
compared to $68,002 for the six months ended March 31, 1997. The
increase in earnings is primarily attributable to higher net interest income.
Net interest income after the provision for losses on loans increased
$105,000 in the six months ended March 31, 1998 compared to the same
period in 1997. Total interest income increased $99,000 or 7.2% from $1.4
million for the six months ended March 31, 1997 to $1.5 million for the
same period in 1998. The increase was primarily attributable to a $106,000
or 9.2% increase in interest income from loan receivables which increased
from $1.1 million for the six months ended March 31, 1997 to $1.3 million for
the same period in 1998. Total interest expense declined $29,000 or 3.2% from
$895,000 to $867,000 for the comparable period in 1998. This decline was
attributable to a $60,000 decrease in interest expense on deposits from the
quarter ended March 31, 1997 compared to the same quarter in 1998 which was
attributable to lower average cost of deposits. The decrease in interest
expense on deposits was offset by a $32,000 increase in interest
expense related to the increase in FHLB borrowings used to fund loan
portfolio growth.
The provision for loan losses was $25,000 for the six months
ended March 31, 1998 compared to $2,000 for the same period in 1997. The
provision corresponds with the growth in the loan portfolio. While
management of the Bank believes that the allowance for loan losses is sufficient
based on information currently available, no assurances can be made that future
events or conditions or regulatory directives will not result in increased
provisions for loan losses or additions to the Bank's allowance for loan losses
which may adversely affect net income.
Non-interest income increased $7,000 or 34.9% for the six month period
ended March 31, 1998 compared to the same period of 1997, due primarily to
a $5,000 increase in loan fees.
Total non-interest expense declined $16,000 or 3.8% for the six months
ended March 31, 1998 compared to the same period of 1997, due primarily to a
decline in salaries and employee benefits of $55,000 or 23.9% which reflects
a severance payment to a former employee in January 1997. This was offset by
an increase of $35,000 or 139.1% in legal and professional fees related to the
additional reporting required for publicly traded companies.
Total income tax expense was $59,000 for the six months ended
March 31, 1998 compared to $10,000 for the same period in 1997, reflecting
the increase in earnings. The effective tax rate was 28.4% for the 1998
quarter as compared to 12.8% for the 1997 quarter.
THREE MONTH COMPARISON
Net income increased $50,000 or 168.0% from $30,012 for the three months
ended March 31, 1997 compared to $80,444 for the three months ended March 31,
1998.
Net interest income after the provision for losses on loans increased
$42,000 or 16.4% in the three months ended March 31, 1998 compared to the same
period in 1997. The increase in net interest income was primarily the result
of an increase in total interest income of $48,000 or 6.8%. The increase in
total interest income reflects an increase in interest income from loan
receivables of $108,000 or 20.3% and an increase in interest on deposits at
financial institutions of $8,000 or 69.3%. These increases were offset by a
decline in investment security interest of $67,000 or 41.0%. The increase in
loan receivables and decline in investment securities interest is a direct
result of management's emphasis of increasing loans outstanding and funding
them with proceeds from investment security proceeds and FHLB borrowings.
Total interest expense declined $8,000 or 1.7% from $444,000 for the
three months ended March 31, 1997 to $436,000 for the same period in 1998.
The decline is the result of a $31,000 or 7.5% decline in interest expense on
deposits that reflect lower average cost of funds. This decline is offset by an
increase in interest on FHLB borrowings of $24,000 or 80.9% which reflects the
increase in borrowed money.
The provision for loan losses was $15,000 for the three months
ended March 31, 1998 compared to $2,000 for the same period in 1997. The
provision corresponds with the growth in the loan portfolio. While
management of the Bank believes that the allowance for loan losses is sufficient
based on information currently available, no assurances can be made that future
events or conditions or regulatory directives will not result in increased
provisions for loan losses or additions to the Bank's allowance for loan losses
which may adversely affect net income.
Non-interest income increased $4,000 or 31.1% for the three month period
ended March 31, 1998 compared to the same period of 1997, due primarily to
a $3,000 increase in other income.
Total non-interest expense declined $42,000 or 17.8% for the
three months ended March 31, 1998 compared to the same period of 1997, due
primarily to a decline in salaries and employee benefits of $56,000 or 39.7%
which reflects a severance payment to a former employee in January 1997. This
was offset by an increase of $14,000 or 332.8% in legal and professional fees
related to the additional reporting required for publicly traded companies.
Total income tax expense was $42,000 for the three months ended
March 31, 1998 compared to $4,000 for the same period in 1997, reflecting
the increase in earnings. The effective tax rate was 34.3% for the 1998
quarter as compared to 11.8% for the 1997 quarter.
LIQUIDITY AND CAPITAL RESOURCES
The Bank's primary sources of funds are deposits, principal and interest
payments on loans and FHLB advances. While maturities and scheduled amortization
of loans are predictable sources of funds, deposit flows and mortgage
prepayments are greatly influenced by general interest rates, economic
conditions, and competition. The Company's initial stock offering, which was
completed on March 25, 1997, contributed substantially to the Company's overall
liquidity levels. The Federal Deposit Insurance Corporation ("FDIC"), the
Bank's primary Federal regulator, requires the Bank to maintain adequate levels
of liquid assets. The Bank's liquidity ratios were 20.3% and 20.4% at
March 31, 1998 and September 30, 1997, respectively.
A review of the Consolidated Statements of Cash Flows included in the
accompanying financial statements shows that the Company's cash and cash
equivalents ("cash") increased $830,000 from September 30, 1997 to March 31,
1998. During the first six months of fiscal 1998, cash was primarily provided
by FHLB advances. Cash was primarily used in fiscal 1998 to fund loans. Cash
increased $4.4 million from September 30, 1996 to March 31, 1997. The increase
in cash during the first six months of fiscal 1997 resulted from the sale of
common stock, offset by cash used to fund loans and pay the special assessment
levied to recapitalize the Savings Association Insurance Fund ("SAIF").
As, of March 31, 1998, the Bank had outstanding commitments
(including undisbursed loan proceeds) of $475,000. The Bank anticipates
that it will have sufficient funds available to meet its current loan
origination commitments. Certificates of deposit which are scheduled to mature
in one year or less from March 31, 1998 totaled $14.5 million. Based upon
the Bank's experience, management believes that a significant portion of such
deposits will remain with the Bank.
The FDIC capital regulations require savings institutions to meet three
capital standards: a tier 1 leveraged capital requiremnet, a tier one
risk-based capital requirement, and a total risked based capital requirement.
As of March 31, 1998, the Bank's capital percentages for tier 1 leveraged
capital of 13.09%, tier 1 risked based capital of 25.35%, and total risk-
based capital of 26.08% which significantly exceeded the regulatory requirement
for each category.
"Safe Harbor" Statement under the Private Securities
Litigation Reform Act of 1995
In addition to historical information, forward-looking statements are
contained herein that are subject to risks and uncertainties that could cause
actual results to differ materially from those reflected in the forward-looking
statements. Factors that could cause future results to vary from current
expectations, include, but are not limited to, the impact of economic conditions
(both generally and more specifically in the markets in which the Company
operates), the impact of competition for the Company's customers from other
providers of financial services, the impact of government legislation and
regulation (which changes from time to time and over which the Company has no
control), and other risks detailed in this Form 10-Q and in the Company's other
Securities and Exchange Commission ("SEC") filings. Readers are cautioned not
to place undue reliance on these forward-looking statements, which reflect
management's analysis only as of the date hereof. The Company undertakes no
obligation to publicly revise these forward-looking statements, to reflect
events or circumstances that arise after the date hereof. Readers should
carefully review the risk factors described in other documents the Company
files from time to time with the SEC.
YEAR 2000 COMPLIANCE
The Company is in the final stages of identifying those computer applications
where program changes will be required in order for the applications to process
information accurately subsequent to 1999. Since the Company currently uses
an outside service bureau for a majority of its date processing, the Company is
dependent on the service bureau to be YEAR 2000 compliant. The serivce bureau
has not yet informed the Company that it is or will be YEAR 2000 compliant.
The Company also uses purchased software programs for a variety of functions,
such as for payroll and check processing. The majority of the companies
providing these software programs have already assured the Company that the
programs are YEAR 2000 comliant. The Company is also in the process of
surveying certain loan customers, primarily commercial loan customers, to ensure
that these customers' computer systems and operations are or will be YEAR 2000
compliant. The total cost that the Company may incur for YEAR 2000 compliance
is unknown, however, the cost is not expected to be material since the Company
does not use any proprietary software.
PART 2. OTHER INFORMATION
Item 1. Legal Proceedings
Not applicable.
Item 2. Changes in Securities and Use of Preceeds
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
Not applicable.
Item 6. Exhibits and Reports on Form 8-K
a. Exhibits
The following exhibits are filed as part of this
report:
3.1 Certificate of Incorporation of Vermilion
Bancorp, Inc.*
3.2 By-laws of Vermilion Bancorp, Inc.*
11.0 Computation of earnings per share
27.0 Financial Data Sheet
_____________________________
* Incorporated herein by reference into this document from Form SB-2.
* Registration Statement, as amended, filed on March 28, 1997
Registration No. 333-17227.
b. Reports on Form 8-K
None
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act
of 1934, the registrant had duly caused this report to be signed
on its behalf by the undersigned thereunto duly authorized.
Dated: May 07, 1998 /s/ Merrill G. Norton
Merrill G. Norton
President and Chief
Executive Officer
Dated: May 07, 1998 /s/ Terry L. Stal
Terry L. Stal
Chief Financial Officer
11.0 COMPUTATION OF EARNINGS PER SHARE
Statement Regarding Computation of Earnings Per Share for
the Six Months Ended March 31, 1998
(unaudited)
1998
Basic: ----
Net income $ 147,650
Weighted average
number of shares 369,049
Basic earnings
per share $ 0.40
Diluted:
Net income $ 147,650
Weighted average
number of shares 369,049
Basic earnings
per share $ 0.40
Note: Net earnings per share are computed based upon the
weighted average common equivalent shares outstanding for
periods subsequent to the Bank's conversion to a stock
savings bank on March 25, 1997. Net earnings per share for
the six months ended March 31, 1997, are not meaningful.
<TABLE> <S> <C>
<ARTICLE> 9
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> SEP-30-1998
<PERIOD-END> MAR-31-1998
<CASH> 43,426
<INT-BEARING-DEPOSITS> 2,043,646
<FED-FUNDS-SOLD> 0
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 3,105,691
<INVESTMENTS-CARRYING> 2,694,994
<INVESTMENTS-MARKET> 2,747,639
<LOANS> 31,530,503
<ALLOWANCE> 150,765
<TOTAL-ASSETS> 40,498,221
<DEPOSITS> 29,139,179
<SHORT-TERM> 5,000,000
<LIABILITIES-OTHER> 225,276
<LONG-TERM> 0
0
0
<COMMON> 3,968
<OTHER-SE> 3,622,479
<TOTAL-LIABILITIES-AND-EQUITY> 40,498,221
<INTEREST-LOAN> 1,253,546
<INTEREST-INVEST> 194,740
<INTEREST-OTHER> 29,241
<INTEREST-TOTAL> 1,477,527
<INTEREST-DEPOSIT> 776,043
<INTEREST-EXPENSE> 866,546
<INTEREST-INCOME-NET> 610,981
<LOAN-LOSSES> 25,000
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 407,414
<INCOME-PRETAX> 206,150
<INCOME-PRE-EXTRAORDINARY> 206,150
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 147,650
<EPS-PRIMARY> 0.40
<EPS-DILUTED> 0.40
<YIELD-ACTUAL> .077
<LOANS-NON> 0
<LOANS-PAST> 538,000
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 151,868
<CHARGE-OFFS> 27,685
<RECOVERIES> 1,582
<ALLOWANCE-CLOSE> 150,765
<ALLOWANCE-DOMESTIC> 0
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 150,765
</TABLE>
