<PAGE>
<PAGE>
U.S. 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 June 30, 1998
Commission File Number: 333-20489
Rocky Ford Financial, Inc.
- ----------------------------------------------------------------
(Exact Name of Small business Issuer as Specified in Its Charter)
Delaware 84-1413346
- ------------------------------- -----------------
(State or Other Jurisdiction of (I.R.S. Employer
Incorporation or Organization) Identification Number)
801 Swink Avenue, Rocky Ford, Colorado 81067
- -----------------------------------------------------------------
(Address of Principal Executive Offices)
719-254-7642
- -----------------------------------------------------------------
(Issuer's Telephone Number, Including Area Code)
Check whether the issuer's: (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
---- ----
State the number of shares outstanding of each of the
issuer's classes of common equity, as of the latest practicable
date:
Shares of common stock outstanding as of June 30, 1998
423,200
<PAGE>
<PAGE>
ROCKY FORD FINANCIAL, INC.
CONTENTS
PART I - FINANCIAL INFORMATION
Item 1: Financial Statements
Consolidated Statement of Condition at
June 30, 1998 and September 30, 1997 3
Statements of Consolidated Income for the
Three Months and Nine Months Ended
June 30, 1998 and 1997 4
Statements of Consolidated Cash Flows for the
Nine Months Ended June 30, 1998 and 1997 5
Notes to Financial Statements 6 - 7
Item 2: Management's Discussion and Analysis of
Financial Condition and Results of
Operations 8 - 10
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 Security Holders 11
Item 5: Other Information 11
Item 6: Exhibits and Reports on Form 8-K 11
Signature 11
2
<PAGE>
<PAGE>
ROCKY FORD FINANCIAL, INC.
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(UNAUDITED)
<TABLE>
<CAPTION>
June 30, September 30,
1998 1997
---------- ------------
ASSETS
<S> <C> <C>
Cash and cash equivalents
Interest - bearing $ 3,000,000 $ 2,900,000
Non-interest bearing 233,286 305,382
Certificates of deposit 1,602,277 1,999,312
Securities available for sale
Equity securities (amortized cost
of $11,327) 544,419 409,218
Securities held to maturity
Mortgage-backed securities (estimated
market value of $2,044,700 and
$2,629,000) 1,953,388 2,421,308
U.S. agencies (estimated market value
of $753,650 and $743,000) 749,141 748,965
Loans receivable - net 13,959,706 13,529,566
Federal Home Loan Bank stock, at cost 342,400 323,500
Retirement trust assets 251,687 251,687
Accrued interest receivable 137,451 146,769
Premises and equipment 79,067 83,270
Prepaids 26,244 45,910
----------- -----------
TOTAL ASSETS $22,879,066 $23,164,887
=========== ===========
LIABILITIES AND EQUITY
Deposits $15,574,065 $16,139,404
Advances from borrowers for taxes and
insurance 21,527 35,562
Accounts payable and accrued expenses 342,125 372,700
Current income taxes 50,020 -
Deferred income taxes 221,895 169,400
----------- -----------
TOTAL LIABILITIES 16,209,632 16,717,066
----------- -----------
Commitments and contingencies
Preferred stock - $.01 par value;
authorized 1,000,000 shares; no
shares issued or outstanding - -
Common stock-$.01 par value;
authorized 3,000,000 shares;
issued and outstanding 423,200 4,232 4,232
Paid-in capital 3,841,628 3,830,582
Retained earnings - substantially
restricted 2,787,886 2,700,923
Net unrealized gain on securities
available for sale, net of tax of
$197,270 and $147,240 335,821 250,644
Note receivable from ESOP Trust (300,133) (338,560)
----------- -----------
TOTAL EQUITY 6,669,434 6,447,821
----------- -----------
TOTAL LIABILITIES AND EQUITY $22,879,066 $23,164,887
=========== ===========
</TABLE>
SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
3
<PAGE>
<PAGE>
ROCKY FORD FINANCIAL, INC.
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
June 30, June 30,
--------------------- --------------------
1998 1997 1998 1997
---------- --------- -------- --------
<S> <C> <C> <C> <C>
INTEREST INCOME
Loans receivable $298,989 $291,880 $ 883,195 $ 838,550
Securities held 58,341 80,725 187,092 202,725
Other interest-bearing assets 68,154 63,785 207,283 180,860
-------- -------- ---------- ----------
TOTAL INTEREST INCOME 425,484 436,390 1,277,570 1,222,135
INTEREST ON DEPOSITS 189,766 214,530 576,122 627,806
-------- -------- ---------- ----------
NET INTEREST INCOME 235,718 221,860 701,448 594,329
(PROVISION FOR) RECOVERY OF LOAN
LOSSES - - - -
-------- -------- ---------- ----------
NET INTEREST INCOME AFTER
PROVISION FOR LOAN LOSSES 235,718 221,860 701,448 594,329
-------- -------- ---------- ----------
NON-INTEREST INCOME
Other charges 3,855 4,181 8,722 11,702
-------- -------- ---------- ----------
NON-INTEREST EXPENSE
GENERAL AND ADMINISTRATIVE
Compensation and benefits 77,274 96,641 233,682 449,297
Occupancy and equipment 7,795 11,500 22,957 27,559
Computer services 12,622 8,524 32,057 24,986
SAIF deposit insurance 4,296 4,561 13,145 18,471
Other 52,951 22,519 167,344 69,208
-------- -------- ---------- ----------
TOTAL NON-INTEREST EXPENSE 154,938 143,745 469,185 589,521
-------- -------- ---------- ----------
INCOME BEFORE TAXES 84,635 82,296 240,985 16,510
INCOME TAX (EXPENSE) BENEFIT (30,887) (28,574) (95,620) 635
-------- -------- ---------- ----------
NET INCOME $ 53,748 $ 53,722 $ 145,365 $ 17,145
======== ======== ========== ==========
BASIC EARNINGS PER COMMON SHARE $ 0.14 $ 0.06 $ 0.37 $ 0.06
======== ======== ========== ==========
DILUTED EARNINGS PER COMMON SHARE $ 0.14 $ 0.06 $ 0.37 $ 0.06
======== ======== ========== ==========
WEIGHTED AVERAGE COMMON SHARES
OUTSTANDING BASIC 396,116 392,730 396,116 392,730
DILUTED 396,116 392,730 396,116 392,730
DIVIDENDS PER SHARE $ 0.15
</TABLE>
SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
4<PAGE>
<PAGE>
ROCKY FORD FINANCIAL, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
<TABLE>
<CAPTION>
Nine Months Ended
June 30,
--------------------------
1998 1997
---------- ---------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 145,365 $ 17,145
----------- -----------
Adjustments to reconcile net income to
net cash provided by operating activities:
Amortization of:
Deferred loan origination fees (7,276) (12,450)
Discounts on investments (845) (755)
Stock dividend received from FHLB (18,900) (15,300)
ESOP market value expense 15,617 3,100
Depreciation 12,568 15,024
Change in assets and liabilities
Accrued interest receivable 9,318 (20,742)
Prepaids 19,666 5,769
Accounts payable and accrued expenses 3,281 55,298
Current income taxes 50,020 -
Deferred income taxes 2,471 (14,109)
----------- -----------
TOTAL ADJUSTMENTS 85,920 15,835
----------- -----------
NET CASH PROVIDED (USED) BY OPERATING
ACTIVITIES 231,285 32,980
----------- -----------
CASH FLOWS FROM INVESTING ACTIVITIES
Net change in certificates of deposit 397,035 199,000
Loan originations and principal payments
on loans (422,864) (835,687)
Purchase of investment securities held
to maturity - (248,906)
Principal payments on mortgage-backed
securities 468,589 84,666
Capital purchases (8,365) (4,630)
Establishing retirement plan trust - (216,482)
----------- -----------
NET CASH PROVIDED (USED) BY INVESTING
ACTIVITIES 434,395 (1,022,039)
----------- -----------
CASH FLOWS FROM FINANCING ACTIVITIES
Issuance of common stock - 3,542,440
Net change in deposits (565,339) (389,936)
Net change in mortgage escrow funds (14,035) (16,829)
Dividends paid (58,402) -
----------- -----------
NET CASH PROVIDED (USED) BY FINANCING
ACTIVITIES (637,776) 3,135,675
----------- -----------
NET INCREASE IN CASH AND CASH EQUIVALENTS 27,904 2,146,616
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 3,205,382 2,221,416
----------- -----------
CASH AND CASH EQUIVALENTS AT END OF YEAR $ 3,233,286 $ 4,368,032
=========== ===========
SUPPLEMENTAL DISCLOSURE OF CASH FLOWS
Cash paid for:
Taxes $ 23,969 $ 43,205
Interest 584,722 297,264
</TABLE>
SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
5<PAGE>
<PAGE>
ROCKY FORD FINANCIAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
June 30, 1998
Note 1. Nature of Business
Rocky Ford Financial, Inc. (the "Company") was incorporated under
the laws of the State of Delaware for the purpose of becoming the
holding company of Rocky Ford Federal Savings and Loan
Association (the "Association") in connection with the
Association's conversion from a federally chartered mutual
savings and loan association to a federally chartered stock
savings and loan association, pursuant to its Plan of
Conversion. The Company was organized in January 1997 to
acquire all of the common stock of Rocky Ford Federal Savings
and Loan Association upon its conversion to stock form. The
subscription and community offering of the Company's shares was
completed on May 21, 1997.
Note 2. Basis of Presentation
The accompanying unaudited consolidated financial
statements,(except for the statement of financial condition at
September 30, 1997, which is audited) have been prepared in
accordance with generally accepted accounting principles for
interim financial information and with the instructions to Form
10-QSB 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 adjustments necessary for a fair
presentation of the financial position and results of operations
for the periods presented have been included. The financial
statements of the Company are presented on a consolidated basis
with those of Rocky Ford Federal Saving and Loan Association.
The account balances include only the accounts and operations of
Rocky Ford Federal Savings and Loan Association prior to May 21,
1997. The results of operations for the three and nine months
ended June 30, 1998 are not necessarily indicative of the
results of operations that may be expected for the year ended
September 30, 1998.
The accounting policies followed are as set forth in Note 1 of
the Notes to Financial Statements in the 1997 Rocky Ford
Financial Inc., financial statements, included as item 7 to the
Company's annual report on Form 10-KSB for the year ended
September 30, 1997, and incorporated herein by reference.
Note 3. Regulatory Capital Requirements
At June 30, 1998, the Association met each of the three current
minimum regulatory capital requirements. The following table
summarizes the Association's regulatory capital position at June
30, 1998:
Tangible Capital:
Actual $4,712,000 22.50%
Required 314,000 1.50
Excess $4,398,000 20.00%
Tier 1 (Core) Capital:
Actual $4,712,000 22.50%
Required 838,000 4.00
Excess $3,874,000 18.50%
Total Risk-Based Capital:
Actual $4,772,000 55.15%
Required 692,000 8.00
Excess $4,080,000 47.15%
6
<PAGE>
<PAGE>
ROCKY FORD FINANCIAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
JUNE 30, 1998
Note 3. Regulatory Capital Requirements (Continued)
Tangible and core capital levels are shown as a percentage of
total adjusted assets; risk-based capital levels are shown as
a percentage of risk-weighted assets.
Note 4. Mutual to Stock Conversion
On January 14, 1997, The Board of Directors of the Association
adopted a Plan of Conversion (the Plan) under which the
Association would convert from a federally charted mutual
savings and loan association to a federally chartered stock
savings and loan association and become a wholly-owned
subsidiary of the Company formed in connection with the
Conversion. The Plan was approved by the Office of Thrift
Supervision (OTS) and included the filing of a registration
statement with Securities and Exchange Commission. The Plan was
approved by the members of the Association at a special meeting
held May 6, 1997. In accordance with the Plan, the Company
issued common stock which was sold in the Conversion. The
closing of the offering occurred on May 21, 1997 and resulted
in a stock offering of $4,232,000 (including $331,560 in shares
subscribed by the ESOP). The Company transferred fifty percent
of the net proceeds for the purchase of all of the capital stock
of the Association.
The costs of issuing the common stock were deferred and was
deducted from the proceeds of the stock sale and amounted to
$410,186.
For the purpose of granting eligible members of the Association
a priority in the event of future liquidation, the Association,
at the time of conversion, established a liquidation account
equal to its regulatory capital as of the date of the latest
balance sheet used in the final conversion offering circular.
In the event (and only in such event) of future liquidation of
the converted Association, an eligible savings account holder
who continues to maintain a savings account shall be entitled
to receive a distribution from the liquidation account, in the
proportionate amount of the then-current adjusted balance of the
savings deposits then held, before any distributions may be made
with respect to capital stock.
The Association may not declare or pay a cash dividend on its
common stock if its net worth would thereby be reduced below
either the aggregate amount then required for the liquidation
account or the minimum regulatory capital requirements imposed
by federal regulations
The ESOP stock purchases were financed by issuing a note to the
Company for the entire purchase.
Note 5. Earnings Per Share
The Company adopted Financial Accounting Standards Board
Statement No. 128 relating to earnings per share, effective for
the quarter ended December 31, 1997. The statement requires
dual presentations of basic and diluted earnings per share on
the face of the income statement. Basic EPS excludes dilution
and is computed by dividing income available to common
stockholders by the weighted-average number of common shares
outstanding for the period. Diltuted EPS reflects the potential
dilution that could occur if securities or other contracts to
issue common stock were exercised or converted into common stock
or resulted in the issuance of common stock that then shares in
the earnings of the entity. Earnings per share amounts for the
periods ended June 30, 1997, have been restated to conform to
the requirements of this statement.
Note 6 Dividends Paid
On January 12, 1998, the Board of Directors declared a cash
dividend of $0.15 per share to stockholders of record as of
February 16, 1998 and paid on February 25, 1998.
7<PAGE>
<PAGE>
ROCKY FORD FINANCIAL, INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
COMPARISON OF FINANCIAL CONDITION AT JUNE 30, 1998 AND SEPTEMBER
30, 1997
The Company's total assets decreased by $300,000 or 1.29% from
$23.2 million at September 30, 1997 to $22.9 million at June 30,
1998. The decrease is attributed to assets used to fund the
reduction in deposits.
The Company's loan portfolio had a net increase of approximately
$430,000 during the nine months ended June 30, 1998. Net loans
totaled $14.0 million at June 30, 1998 and $13.5 million at
September 30, 1997. During the nine months ended June 30, 1998,
the Company wrote loans in the amount of $2.2 million and
received payments in the amount of $1.7 million. As of June 30,
1998, the outstanding loan commitments for real estate loans was
$300,000.
The allowance for loan losses totaled $60,000 at June 30, 1998
and September 30, 1997. As of those dates the Company did not
have any non-performing loans in its portfolio. There were no
loans charged off or recoveries of previous loan losses during
the nine months ended June 30, 1998. The determination of the
allowance for loan losses is based on management's analysis,
performed on a quarterly basis, of various factors, including the
market value of the underlying collateral, growth and composition
of the loan portfolio, the relationship of the allowance for loan
losses to outstanding loans, historical loss experience,
delinquency trends and prevailing economic conditions. Although
management believes its allowance for loan losses is adequate,
there can be no assurance that additional allowances will not be
required or that losses on loans will not be incurred. The
Company has had minimal losses on loans in prior years. At June
30, 1998, the ratio of the allowance for loan losses to net loans
was .43%. as compared to .44% at September 30, 1997.
The Company's interest earning assets, excluding loans, decreased
$600,000 from $8.8 million at September 30, 1997 to $8.2 million
at June 30, 1998. The Company's investment portfolio, at June
30, 1998, included mortgage-backed and related securities
classified as "held to maturity" carried at amortized cost of
$2.7 million and an estimated fair value of $2.8 million, equity
securities classified as "available for sale" with an estimated
fair value of $544,000 and interest bearing deposits with various
financial institutions totaling $4.6 million.
At June 30, 1998 deposits decreased to $15.6 million from $16.1
million at September 30, 1997 or a net decrease of 3.11%. The
decrease is attributed to normal seasonal withdrawals.
Management is continually evaluating the investment alternatives
available to the Company's customers, and adjusts the pricing on
its savings products to maintain its existing deposits.
COMPARISON OF OPERATING RESULTS FOR THE NINE MONTHS ENDED JUNE
30, 1998 AND 1997
Net Income. The Company's net income for the nine months ended
June 30, 1998 was $145,000 compared to net income of $17,000 for
the nine months ended June 30, 1997. The decrease in net
earnings for the nine months ended June 30, 1997 resulted
primarily from the recognition of past service retirement
expense of approximately $142,000, net of deferred income tax
effect, in accordance with the retirement plan adopted by the
board of directors effective March 31, 1997.
Net Interest Income. Net interest income for the nine months
ended June 30, 1998 was $701,000 compared to $594,000 for the
nine months ended June 30, 1997. The increase in net interest
income for the nine months ended June 30, 1998 was due to an
increase in the interest rate spread from 2.49% in 1997 to 2.78%
in 1998, and a decrease in deposits of $1.2 million, with a
corresponding decrease in interest expense from $627,000 for the
nine months ended June 30, 1997 to $576,000 for the nine months
ended June 30, 1998.
8<PAGE>
<PAGE>
ROCKY FORD FINANCIAL, INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
Interest Income. Interest income increased by $56,000 from $1.2
million to $1.3 million or by 4.58%, during 1998 compared to
1997. This increase resulted from an increase of average
interest-earning assets from $20.3 million as of June 30, 1997 to
$22.3 million as of June 30, 1998. The Company experienced a
decrease in the average yield on the interest-earning assets from
8.02% in 1997 to 7.64% in 1998
Interest Expense. Interest expense decreased $52,000 to $576,000
for the nine months ended June 30, 1998 from $628,000 for the
nine months ended June 30, 1997. The decrease in expense for the
period was caused by the increase of the average rate paid from
4.84% in 1997 to 4.86% in 1998 with a corresponding decrease in
deposits from $16.8 million in 1997 to $15.6 million in 1998.
Provision for Loan Losses. The allowance for loan losses is
established through a provision for loan losses based on
management's evaluation of the risk inherent in its loan
portfolio and the general economy. Such evaluation considers
numerous factors including, general economic conditions, loan
portfolio composition, prior loss experience, the estimated fair
value of the underlying collateral and other factors that warrant
recognition in providing for an adequate loan loss allowance.
The Company determined a provision for loan loss was not required
for the nine months ended June 30, 1998 and 1997.
Non-Interest Expense. The decrease in the non-interest expense
section of $120,000 is attributed to a $214,000 retirement
expense recognized in June 30, 1997, off set by increased
professional fees and employee benefit plans incurred in the
current period of $94,000.
Income Tax Expense. The benefit recognized as of June 30, 1997
was due to tax credits earned by the Company. The expense
recognized as of June 30, 1998 represents the estimated tax due
on taxable income at the effective tax rate of 40%. The rate
exceeds the statutory rate due to nondeductible ESOP expenses
recognized and the effect of state taxes.
COMPARISON OF OPERATING RESULTS FOR THE THREE MONTHS ENDED JUNE
30, 1998 AND 1997
Net Income. The Company's net income for the three months ended
June 30, 1998 and 1997 was $54,000. The results is attributed to
the additional funds available to Company from the stock
offering, less the effects of benefit plans that have been
adopted and professional fees incurred due to additional
reporting requirements.
Net Interest Income. Net interest income for the three months
ended June 30, 1998 was $236,000 compared to $222,000 for the
three months ended June 30, 1997. The increase in net interest
income for the three months ended June 30, 1998 was due to a
decline in the rate spread from 3.11% for the three months ended
June 30, 1998 to 2.78% for the three months ended June 30, 1998.
In addition deposits decreased by $1.7 million resulting in a
corresponding decline in interest expense of $25,000.
Interest Income. Interest income decreased by $11,000, from
$436,000 for the three months ended June 30, 1997 to $425,000 for
the three months ended June 30, 1997. This decrease resulted
from an increase of average interest-earning assets from $21.7
million for the three months ended June 30, 1997 to $22.3 million
for the three months ended June 30, 1998. The Company
experienced a decrease in the average yield on the interest-
earning assets from 8.02% in 1997 to 7.64% in 1998.
9<PAGE>
<PAGE>
ROCKY FORD FINANCIAL, INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
Interest Expense. Interest expense decreased $25,000 for the
three months ended June 30, 1998 as compared to June 30, 1997.
The decrease in expense for the period was caused by the $1.7
million decrease in average deposits from $17.4 million for the
three months ended June 30, 1997 to $15.7 million for the three
months ended June 30, 1998.
Non-Interest Expense. The increase in non-interest expense of
$11,000 from $144,000 for the three months ended June 30, 1997 to
$155,000 for the three months ended June 30, 1998 is attributed
to a $20,000 decrease in benefits recognized in 1997 as part of
benefit plans adopted by the board offset by increased
professional fees of $31,000 due to added reporting and legal
requirements.
LIQUIDITY AND CAPITAL RESOURCES
The Company's primary sources of funds consists of deposits,
repayment of loans and mortgage-backed securities, maturities of
investments and interest-bearing deposits, and funds provided
form operations. While scheduled repayments of loans and
mortgage-backed securities and maturities of investment
securities are predicable sources of funds, deposit flows and
loan prepayments are greatly influenced by the general level of
interest rates, economic conditions and competition. The Company
uses its liquidity resources principally to fund existing and
future loan commitments, to fund maturing certificates of deposit
and demand deposit withdrawals, to invest in other interest-
earning assets, to maintain liquidity, and to meet operating
expenses. Management believes that proceeds from the stock sale,
loan repayments and other sources of funds will be adequate to
meet the Company's liquidity needs for the immediate future.
The Company is required to maintain minimum levels of liquid
assets as defined by OTS regulations. This requirement, which
may be varied at the direction of the OTS depending upon economic
conditions and deposit flows, is based upon a percentage of
deposits and short-term borrowings. The required minimum ratio
was 5% until November 24, 1997, when it was changed to 4%. The
Company has historically maintained a level of liquid assets in
excess of regulatory requirements. The Company's liquidity
ratios at June 30, 1998 and 1997 were 19% and 23%, respectively.
IMPACT OF INFLATION AND CHANGING PRICES
The financial statements and related data presented herein have
been prepared in accordance with generally accepted accounting
principles, which require the measurement of financial position
and results of operations in terms of historical dollars without
considering changes in the relative purchasing power of money
over time because of inflation. Unlike most industrial
companies, virtually all of the assets and liabilities of the
Company are monetary in nature. As a result, interest rates have
a more significant impact on the Company's performance than the
effects of general levels of inflation. Interest rates do not
necessarily move in same direction or in the same magnitude as
the prices of goods and services.
YEAR 2000 ISSUE
The Company has an ongoing program of evaluating the effect of
the year 2000 on its information processing systems. The
Company's core data processing is performed by an outside vendor.
As of May 15, 1998, all of the vendors clients were running on
Year 2000-ready software, with the validation phase of the change
being implemented. It is management's position that the cost of
modifications will not have a material effect on the Company's
operations. All costs associated with modifications will be
expensed as incurred.
10
<PAGE>
ROCKY FORD FINANCIAL, INC.
PART II - OTHER INFORMATION
ITEM 1: Legal Proceedings
None.
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
Exhibit 27 - Financial Data Schedule
SIGNATURE
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.
Rocky Ford Financial, Inc.
Registrant
Date July 31, 1998 /s/ Keith E. Waggoner
--------------------------------
Keith E. Waggoner, President
11
<TABLE> <S> <C>
<ARTICLE> 9
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> SEP-30-1998
<PERIOD-END> JUN-30-1998
<CASH> 233,286
<INT-BEARING-DEPOSITS> 4,602,277
<FED-FUNDS-SOLD> 0
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 544,419
<INVESTMENTS-CARRYING> 2,702,529
<INVESTMENTS-MARKET> 2,798,350
<LOANS> 13,959,706
<ALLOWANCE> 60,000
<TOTAL-ASSETS> 22,879,066
<DEPOSITS> 15,574,065
<SHORT-TERM> 0
<LIABILITIES-OTHER> 635,567
<LONG-TERM> 0
<COMMON> 4,232
0
0
<OTHER-SE> 6,665,202
<TOTAL-LIABILITIES-AND-EQUITY> 22,879,066
<INTEREST-LOAN> 883,195
<INTEREST-INVEST> 187,092
<INTEREST-OTHER> 207,283
<INTEREST-TOTAL> 1,277,570
<INTEREST-DEPOSIT> 576,122
<INTEREST-EXPENSE> 576,122
<INTEREST-INCOME-NET> 701,448
<LOAN-LOSSES> 0
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 469,185
<INCOME-PRETAX> 240,985
<INCOME-PRE-EXTRAORDINARY> 240,985
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 145,365
<EPS-PRIMARY> 0.37
<EPS-DILUTED> 0.37
<YIELD-ACTUAL> 7.64
<LOANS-NON> 0
<LOANS-PAST> 0
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 0
<CHARGE-OFFS> 0
<RECOVERIES> 0
<ALLOWANCE-CLOSE> 60,000
<ALLOWANCE-DOMESTIC> 60,000
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
