U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
---------------------------
FORM 10-QSB
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 1999
[ ] 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 0-22587
SFB BANCORP, INC.
- --------------------------------------------------------------------------------
(Exact name of Registrant as specified in its Charter)
Tennessee 62-1683732
- --------------------------------------------- -------------------------
(State or other jurisdiction of incorporation (I.R.S. Employer
or organization) Identification Number)
632 East Elk Avenue, Elizabethton, Tennessee 37643
- -------------------------------------------- -------------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (423) 543-1000
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.
X Yes No
---------- --------
As of May 1, 1999, there were 692,217 shares of the Registrant's common stock,
par value $0.10 per share, outstanding. The Registrant has no other classes of
common equity outstanding.
Transitional small business disclosure format:
Yes X No
---------- --------
<PAGE>
SFB BANCORP, INC.
AND SUBSIDIARY
Elizabethton, Tennessee
Index
<TABLE>
<CAPTION>
<S> <C>
PART I. Page(s)
- ------- -------
FINANCIAL INFORMATION
Item 1.
Financial Statements
Consolidated Balance Sheets-(Unaudited) as of December 31, 1998 and March 31, 1999.........3
Consolidated Statements of Income - (Unaudited) for the three month periods
ended March 31, 1998 and 1999............................................................4
Consolidated Statements of Stockholders' Equity - (Unaudited)..............................5
Consolidated Statements of Cash Flows - (Unaudited) for the three months
ended March 31, 1998 and 1999............................................................6
Notes to (Unaudited) Consolidated Financial Statements...................................7-8
Item 2.
Management's Discussion and Analysis of Financial Condition
and Results of Operations.............................................................9-13
PART II.
OTHER INFORMATION
Item 1. Legal Proceedings................................................................14
Item 2. Changes in Securities............................................................14
Item 3. Defaults Upon Senior Securities..................................................14
Item 4. Submission of Matters to a Vote of Security Holders..............................14
Item 5. Other Information................................................................14
Item 6. Exhibits and Reports on Form 8-K.................................................14
Signatures................................................................................15
</TABLE>
2
<PAGE>
SFB BANCORP, INC. AND SUBSIDIARY
Consolidated Balance Sheets
(Unaudited)
(in thousands, except share data)
<TABLE>
<CAPTION>
December 31, March 31,
----------------- --------------------
Assets 1998 1999
------ ---- ----
<S> <C> <C>
Cash on hand $ 467 $ 572
Interest earning deposits 2,372 3,280
Investment securities:
Held to maturity (market value of $1,147
In 1998 and $1,076 in 1999) 1,158 1,131
Available for sale (amortized cost of $2,325
In 1998 and $2,624 in 1999) 2,327 2,620
Loans receivable, net 40,449 40,568
Mortgage-backed securities:
Available for sale (amortized cost of $3,544 in
1998 and $3,106 in 1999) 3,502 3,078
Premises and equipment, net 849 914
Federal Home Loan Bank stock 454 462
Accrued interest receivable 265 270
Prepaid expenses and other assets 23 41
---------- ---------
Total assets $ 51,866 $ 52,936
========== =========
Liabilities and Stockholders' Equity
Deposits $ 40,106 $ 40,827
Advance payments by borrowers for taxes and insurance 188 331
Accrued expenses and other liabilities 221 202
Income taxes payable:
Current - 47
Deferred 81 84
---------- ---------
Total liabilities 40,596 41,491
---------- ---------
Stockholders' equity:
Preferred stock ($.10 par value, 1,000,000 shares
authorized; None outstanding) - -
Common stock ($.10 par value, 4,000,000 shares
authorized; 767,000 shares issued; 694,150
and 692,217 outstanding at December 31, 1998 and
March 31, 1999, respectively ) 77 77
Paid-in capital 7,368 7,373
Retained earnings, substantially restricted 5,732 5,874
Treasury stock at cost (72,850 and 74,783
shares at December 31, 1998 and March 31, 1999,
respectively) (1,034) (1,055)
Accumulated other comprehensive income (24) (19)
Unearned compensation:
Employee stock ownership plan (491) (474)
Restricted stock plan (358) (331)
--------- ----------
Total stockholders' equity 11,270 11,445
-------- ---------
Total liabilities and stockholders' equity $ 51,866 $ 52,936
======== =========
</TABLE>
The accompanying notes are an integral part of these consolidated financial
statements.
3
<PAGE>
SFB BANCORP, INC. AND SUBSIDIARY
Consolidated Statements of Income
(Unaudited)
(in thousands, except per share data)
For Three Months Ended
March 31,
-------------------------
1998 1999
---- ----
Interest income:
Loans $ 834 $ 820
Mortgage-backed securities 69 43
Investments 31 55
Interest earning deposits 53 37
---------- ---------
Total interest income 987 955
---------- ---------
Interest expense:
Deposits 481 466
---------- --------
Net interest income 506 489
Provision for loan losses 8 9
---------- ---------
Net interest income after
provision for loan losses 498 480
---------- ---------
Non-interest income:
Loan fees and service charges 37 42
Other 3 3
---------- ---------
Total non-interest income 40 45
---------- ---------
Non-interest expenses:
Compensation 117 140
Employee benefits 32 32
Net occupancy expense 19 23
Deposit insurance premiums 6 6
Data processing 20 25
Other 90 71
---------- ---------
Total non-interest expenses 284 297
---------- ---------
Income before income taxes 254 228
Income tax expense 94 86
---------- ---------
Net income $ 160 $ 142
========== =========
Earnings per share
Basic $.22 $.22
Diluted $.22 $.22
The accompanying notes are an integral part of these consolidated financial
statements.
4
<PAGE>
SFB BANCORP, INC. AND SUBSIDIARY
Consolidated Statements of Stockholders' Equity
(Unaudited)
(in thousands, except share data)
<TABLE>
<CAPTION>
Accumulated
Other Unearned Compensation
Common Paid-In Retained Treasury Comprehensive ---------------------
Stock Capital Income Stock Income For ESOP For RSP Total
----- ------- ------ ----- ------ -------- ------- -----
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Balance at December 31, 1997 77 7,336 5,373 - (53) (552) - 12,181
Comprehensive income:
Net income - - 497 - - - - 497
Unrealized gain on securities available for sale,
net of income tax expense - - - - 29 - - 29
Common stock purchased for RSP (30,680 shares) - - - - - - (524) (524)
Cash dividends declared ($.20 share) - - (138) - - - - (138)
Treasury stock purchased (72,850 shares) - - - (1,034) - - - (1,034)
Compensation earned - 32 - - - 61 166 259
----- ------ ------ ------- ----- ----- ---- -------
Balance at December 31, 1998 77 7,368 5,732 (1,034) (24) (491) (358) 11,270
Comprehensive income:
Net income - - 142 - - - - 142
Other Comprehensive income - - - - 5 - - 5
Treasury stock purchased (1,933 shares) - - - (21) - - - (21)
Compensation earned - 5 - - - 17 27 49
----- ------ ------ ------- ----- ----- ----- -------
Balance at March 31, 1998 $ 77 $ 7,373 $ 5,874 $(1,055) $ (19) $ (474) $(331) $11,445
===== ====== ====== ======= ===== ===== ===== =======
</TABLE>
The accompanying notes are an integral part of these consolidated financial
statements.
5
<PAGE>
SFB BANCORP, INC. AND SUBSIDIARY
Consolidated Statements of Cash Flows
(Unaudited)
(in thousands)
<TABLE>
<CAPTION>
Three Months Ended
March 31,
--------------------
1998 1999
---- ----
<S> <C> <C>
Operating activities:
Net income $ 160 $ 142
Adjustments to reconcile net income
to net cash provided (used) by
operating activities:
Depreciation 13 17
Provision for loan losses 8 9
Increase (decrease) in reserve for uncollected interest 7 -
Deferred income taxes (benefit) (13) -
Net increase (decrease) in deferred loan fees 2 (10)
Accretion of discounts on investment securities, net (6) (7)
Amortization of premiums on mortgage-backed securities 3 2
Amortization of unearned compensation 24 49
FHLB stock dividends (8) (8)
(Increase) decrease in other assets (32) (18)
(Increase) decrease in accrued interest receivable 1 (5)
Increase in accrued expenses and other liabilities 20 (19)
Increase (decrease) in current income taxes (62) 47
-------- --------
Net cash provided (used) by operating activities 117 199
------- --------
Investing activities:
Maturities of investment securities held to maturity - 33
Purchase of investment securities available for sale (1,050) (1,298)
Maturities of investment securities available for sale 900 1,000
Principal payments on mortgage-backed securities
available for sale 237 436
Net (increase) decrease in loans 556 (118)
Purchase of premises and equipment (5) (82)
------- --------
Net cash provided (used) by investing activities 638 (29)
------- --------
Financing activities:
Net increase (decrease) in deposits $ (518) $ 721
Increase (decrease) in advance payments by borrowers
for taxes and insurance 142 143
Treasury stock purchased - (21)
------- --------
Net cash provided (used) by financing activities (376) 843
------- --------
Increase (decrease) in cash and cash equivalents 379 1,013
Cash and cash equivalents at beginning of period 4,592 2,839
------- --------
Cash and cash equivalents at end of period $ 4,971 $ 3,852
====== ======
Supplemental disclosures of cash flow information:
Cash paid during the year for:
Interest $ 478 $ 449
Income taxes 168 31
======= ========
Noncash transactions:
Unrealized gains on securities and mortgage-backed
securities available for sale, net of deferred taxes $ 8 $ 5
</TABLE>
The accompanying notes are an integral part of these consolidated financial
statements.
6
<PAGE>
SFB BANCORP, INC.
AND SUBSIDIARY
Notes to Consolidated Financial Statements
(Unaudited)
(Tabular amounts in thousands)
1. Basis of Preparation
--------------------
The accompanying unaudited consolidated financial statements were prepared
in accordance with instructions for Form 10-QSB and therefore, do not
include all disclosures necessary for a complete presentation of the
consolidated balance sheets, consolidated statements of income,
consolidated statements of stockholders' equity, and consolidated
statements of cash flows in conformity with generally accepted accounting
principles. However, all adjustments which are, in the opinion of
management, necessary for the fair presentation of the interim financial
statements have been included. All such adjustments are of a normal
recurring nature. The statement of income for the three month period ended
March 31, 1999 is not necessarily indicative of the results which may be
expected for the entire year.
It is suggested that these consolidated financial statements be read in
conjunction with the audited consolidated financial statements and notes
thereto for the Company for the year ended December 31, 1998 which are
included in the Form 10-KSB by reference (file no. 0-22587).
2. Earnings Per Share
------------------
Basic earnings per common share for all periods presented is computed by
dividing net income by the weighted average number of common share
outstanding. Diluted earnings per common share is computed by dividing net
income available to common stockholders by the weighted average number of
common shares outstanding and dilutive potential common shares, which
include stock options. Dilutive potential common shares are calculated
using the treasury stock method. Options to purchase 73,630 shares of the
Company's common stock were outstanding during the March 1999 quarter, but
were not included in the computation of diluted EPS because their effect
would be anti-dilutive.
March 31, 1998 March 31, 1999
---------------- ----------------
Income Shares Income Shares
Net Income $160 $142
BASIC EPS
Income available to common stockholders $160 713 $142 645
Per share amount $.22 $.22
Effect of Dilutive Securities $.00 $.00
DILUTIVE EPS
Income available to common stockholders $160 713 $142 645
Per share amount $.22 $.22
7
<PAGE>
3. Asset Quality
-------------
The following table sets forth information regarding the Bank's
nonperforming loans (i.e., loans which are contractually past due 90 days
or more) at December 31, 1998 and March 31, 1999, respectively. As of the
dates indicated, the Bank had no loans categorized as troubled debt
restructuring within the meaning of SFAS 15.
December 31, March 31,
1998 1999
------------ -----------
Nonaccrual loans $ 437 $ 343
Repossessed real estate - -
--------- ---------
Total nonperforming assets $ 437 $ 343
========= =========
Nonperforming loans to net loans 1.08% .85%
Nonperforming assets to total assets .84% .65%
8
<PAGE>
Item 2.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
General
The Private Securities Litigation Reform Act to 1995 contains safe harbor
provisions regarding forward-looking statements. When used in this discussion,
the words "believes", "anticipates", "contemplates" "expects", and similar
expressions are intended to identify forward-looking statements. Such statements
are subject to certain risks and uncertainties which could cause actual results
to differ materially from those projected. Those risks and uncertainties include
changes in interest rates, risk associated with the effect of opening a new
branch, the ability to control costs and expenses, and general economic
conditions. The Company undertakes no obligation to publicly release the results
of any revisions to those forward looking statements which may be made to
reflect events or circumstances after the date hereof or to reflect the
occurrence of unanticipated events.
The following discussion and analysis is intended to assist in understanding the
financial condition and the results of operations of the Company. References to
the "Company" include SFB Bancorp, Inc. and/or Security Federal Bank as
appropriate.
Comparison of Results of Operations for the Three Months Ended March 31, 1998
and 1999
Net Income. Net income decreased $18,000 or 11.3% for the three months ended
March 31, 1999 to $142,000, compared to $160,000 for the three months ended
March 31, 1998. The decrease was primarily the result of an decrease in net
interest income of $17,000. The return on average equity was 4.42% for the three
months ended March 31, 1999, compared to 4.81% for the three months ended March
31, 1998. The return on average assets was 1.07% for the three months ended
March 31, 1999, compared to 1.21% for the three months ended March 31, 1998.
Net Interest Income. Net interest income decreased approximately $17,000 or 3.4%
from $506,000 for the three months ended March 31, 1998 to $489,000 for the
three months ended March 31, 1999. The decrease in net interest income primarily
reflects a decrease in average interest-earning assets of approximately
$465,000, combined with an approximately $891,000 increase in average
interest-bearing liabilities. The interest rate spread, however, increased from
2.85% for three months ending March 31, 1998 to 2.91% for the three months
ending March 31, 1999, while the net interest margin decreased 10 basis points
to 3.83% for the three months ended March 31, 1999.
Interest Income. Total interest income decreased $32,000 from $987,000 for the
three months ended March 31, 1998 to $955,000 for the three months ended March
31, 1999. The decrease was attributable to a decrease in average
interest-earning assets of approximately $465,000 from $51.5 million at March
31, 1998 to $51.0 million at March 31, 1999, and a 18 basis point decrease in
the average yield on average interest-earning assets. Interest on loans
decreased $14,000 and interest on interest-earning deposits decreased $16,000,
while interest on investments increased $24,000.
9
<PAGE>
The increase in interest on investments primarily reflects an increase of
approximately $2.0 in the average investment balance for 1999, compared to 1998.
Average interest-earning deposits decreased $600,000 as funds were used to
purchase investment securities. Interest on mortgage-backed securities decreased
$26,000 as the portfolio continues to mature and principal payments are
received. The Company has utilized the principal payment to fund loan demand, to
purchase investment securities and to fund deposit withdrawals.
Interest Expense. Interest expense decreased $15,000 from $481,000 for the three
months ended March 31, 1998 to $466,000 for the three months ended March 31,
1999. The decrease for the three months ended March 31, 1999 was primarily the
result of a decrease of 24 basis points in the average cost of funds, offset by
an increase of approximately $891,000 in the average balance of deposits
outstanding for the three month period in 1999, compared to the same period in
1998.
Provision for Loan Losses. The provision for loan losses for three month period
ended March 31, 1999 was $9,000 and $8,000 for the period ended March 31, 1998.
Management regularly performs an analysis to quantify the inherent risk of loss
in its portfolio. At March 31, 1999 the ratio of the allowance for loan loss was
at a level deemed adequate by management to provide for losses in the loan
portfolio. The ratio of allowance for loan loss to non-performing loans at March
31, 1999 was .98% and nonperforming loans represented only .65% of total
consolidated assets.
Non-Interest Income. Non-interest income remains an insignificant source of
income for the Company. The income is produced by fees on new loan production
and service fees on other products and services. Total non-interest income was
$45,000 for the three months ended March 31, 1999, compared to $40,000 for the
three months ended March 31, 1998.
Non-Interest Expense. Non-interest expense increased by $13,000 from
approximately $284,000 for the three month period ended March 31, 1998 to
approximately $297,000 for the three month period in 1999. The increase was
primarily the result of increased compensation expense of $23,000, a combined
$9,000 increase in net occupancy and data processing expenses, offset by a
$19,000 reduction in other expenses incurred during the period. The increase in
compensation expense for the three months ended March 31, 1999, was primarily
attributable to the recognition of $34,000 in additional compensation expense
associated with the stockholder approved Restricted Stock Plan (RSP). No
compensation expense was recognized in the first quarter of 1998, since it was
prior to the plan approval, which occurred on June 1, 1998. The increase in data
processing expense was mainly attributable to increased costs of ATM service.
The decrease in other non-interest expense was mainly attributable to
management's attempt to control general operating expenses and those expenses
associated with being a public company.
As previously discussed, the Bank plans to open an additional branch office in
nearby Mountain City, Tennessee, during the first half of 1999. The Company
expects that non-interest expense will increase during 1999 due to the costs
associated with opening and maintaining this additional branch office. It is
anticipated that ultimately the new branch will produce sufficient income to
cover these additional operating expense. See "Liquidity and Capital Resources".
10
<PAGE>
Income Taxes. Income tax expense for the three months ended March 31, 1999,
decreased $8,000 to $86,000, compared to the same period in 1998. The decrease
was primarily the result of lower pre-tax income. The effective tax rate for the
three months ended March 31, 1999 and 1998, was approximately 37%.
Liquidity and Capital Resources. The Company's primary sources of funds are new
deposits, proceeds from principal and interest payments on loans, and repayments
on mortgage-backed securities. While maturities and scheduled amortization of
loans are a predictable source of funds, deposit flows and mortgage prepayments
are greatly influenced by general interest rates, economic conditions and
competition. The Company's primary investing activity is loan originations. The
Company maintains liquidity levels adequate to fund loan commitments, investment
opportunities, deposit withdrawals and other financial commitments. At March 31,
1999 there were no material commitments for capital expenditures. Obligations to
fund outstanding loan commitments at March 31, 1999 were approximately $263,000.
The Bank purchased for $135,000 land and an existing building for the branch
office which is to be located in nearby Mountain City, Tennessee. Management
estimates that costs incidental to renovating and equipping the building to be
approximately $200,000. As of March 31, 1999, the Bank had capitalized
approximately $168,000 of the estimated $200,000 of costs associated with
equipping this branch facility. As of March 31, 1999, the branch had not opened
for business.
At March 31, 1999 management had no knowledge of any trends, events or
uncertainties that will have or are reasonably likely to have material effects
on the liquidity, capital resources or operations of the Company. Further at
March 31, 1999, management was not aware of any current recommendations by the
regulatory authorities which, if implemented, would have such an effect.
The Bank exceeded all of its capital requirements at March 31, 1999. The Bank
had the following capital ratios at March 31, 1999:
11
<PAGE>
<TABLE>
<CAPTION>
For Capital Categorized as "Well
Actual Adequacy Purposes Capitalized"(1)
--------------- ---------------- -----------------
Amount Ratio Amount Ratio Amount Ratio
-------- ------ --------- ------ -------- --------
<S> <C> <C> <C> <C> <C> <C>
As of March 31, 1999:
Total Capital
(To risk weighted assets) $ 9,148 30.9% $ 2,370 8.00% $ 2,963 10.0%
Tier I Capital
(To risk weighted assets) $ 8,813 29.8% $ 1,185 4.00% $ 1,777 6.0%
Tier I Capital
(To total assets) $ 8,813 17.4% $ 889 3.00% $ 1,481 5.0%
Tangible Capital
(To total assets) $ 8,813 17.4% $ 444 1.50% $ 1,481 5.0%
</TABLE>
- -----------------------
(1) As categorized under the Prompt Corrective Action Provisions.
Year 2000 Compliance. A great deal of information has been disseminated about
the Year 2000 as it relates to computer systems. Many computer programs that can
only distinguish the final two digits of the year entered (a common programming
practice in earlier years) are expected to read entries for the Year 2000 as the
Year 1900 and compute payment, interest or delinquency based on the wrong date
or are expected to be unable to compute payment, interest or delinquency. Rapid
and accurate data processing is essential to the Bank's operations. Data
processing is also essential to most other financial institutions and many other
companies. Substantially all of the Bank's material data processing that could
be affected by this problem is provided by a third party service bureau. The
service bureau has informed the Bank that it will not be assessing special
charges for the renovation and testing of its hardware and software in
preparation for Year 2000. However, if the service bureau is unable to resolve
this potential problem in time, the Bank would likely experience significant
data processing delays, mistakes or failures. These delays, mistakes or failures
could have a significant adverse impact on our financial condition and results
of operation.
The Bank has formulated a Year 2000 Compliance Plan and a Year 2000 Contingency
Plan. The Year 2000 Compliance Plan is structured in accordance with the Office
of Thrift Supervision's Year 2000 Examination Checklist, Version 2. It addresses
the identified phases of: Awareness, Assessment, Renovation, Validation and
Implementation. The purpose of the plan is to outline the procedures necessary
for assuring that the Bank is in readiness for the century date change.
Execution of the plan is currently on target. The Bank's Year 2000 Contingency
Plan is designed to prepare the institution for returning to operation in the
event that systems do not perform as planned either before or after the century
date change. The plan addresses vital mission critical applications and states
both the plans in the event of noncompliance and dates for when the plan will be
put into effect.
The Company has contacted other material vendors and supplier regarding their
Year 2000 state of readiness. The Company has obtained written assurance from
these third party vendors indicating that they expect to be Year 2000 compliant
prior to the Year 2000.
12
<PAGE>
The Bank's third party service bureau during October 1998, converted the Bank to
its new state of the art core account processing platform. This new technology
was built with Year 2000 compatible components. The service bureau during
October 1998, conducted Year 2000 proxy testing on this new platform. The Bank
expects to commence testing in May 1999. In addition, each application of the
system has been renovated to run on the new platform and date fields expanded to
a four digit year. Other service bureau products and services utilized by the
Bank are expected to be brought Year 2000 compliant by June 1999.
The Bank upgraded its teller operating system during the first quarter of 1999.
This upgrade will further ensure Year 2000 readiness by using Year 2000
certified software and hardware. The Company's management estimates costs
incidental to the upgrade to be approximately $100,000. The Company's management
anticipates that substantially all of such costs will be capitalized. These
costs should not be material to the Company in any single year. As of March 31,
1999, the Company had capitalized approximately $35,000 in regard to the upgrade
of its software and hardware for Year 2000 compliance.
The Company's successful and timely completion of the Year 2000 project is based
on estimates derived by management on assumptions of future events, which are
inherently uncertain, including the progress and results of the Company's third
party service provider, testing plans, and all vendors, suppliers and customer
readiness.
13
<PAGE>
Part II. OTHER INFORMATION
Item 1. Legal Proceedings
-----------------
From time to time, the Company and its subsidiaries may be a party
to various legal proceedings incident to its or their business. At
March 31, 1999, there were no legal proceedings to which the Company
or any subsidiary was a party, or to which of any of their property
was subject, which were expected by management to result in a
material loss.
Item 2. Changes in Securities
---------------------
None
Item 3. Defaults Upon Senior Securities
-------------------------------
None
Item 4. Submission of Matters to a Vote of Security Holders
---------------------------------------------------
None
Item 5. Other Information
-----------------
None
Item 6. Exhibits and Reports on Form 8-K
--------------------------------
(a) 3(i) Charter of SFB Bancorp, Inc.*
3(ii) Bylaws of SFB Bancorp, Inc. *
4 Specimen Stock Certificate *
10 Employment Agreement with Peter W. Hampton *
10.1 SFB Bancorp, Inc. 1998 Stock Option Plan * *
10.2 Security Federal Bank Restricted Stock Plan * *
27 Financial Data Schedule ( Electronic filing only)
- -------------------------
* Incorporated by reference to the Registration Statement on Form
SB-2, File No. 333-23505.
** Incorporated by reference to the Company's Proxy Statement for
the 1999 Annual Meeting of Stockholders, filed with the SEC on
March 31, 1999 (File No. 0-22587)
(b) Reports on Form 8-K
None.
14
<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.
SFB Bancorp, Inc.
Date: May 13, 1999 By /s/ Peter W. Hampton
---------------------------------
Peter W. Hampton
(President and Chief Executive
Officer)
Date: May 13, 1999 By /s/ Bobby Hyatt
---------------------------------
Bobby Hyatt
(Principal Accounting Officer)
<TABLE> <S> <C>
<ARTICLE> 9
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
QUARTERLY REPORT ON FORM 10-QSB AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO
SUCH FINANCIAL INFORMATION.
</LEGEND>
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> Dec-31-1999
<PERIOD-END> Mar-31-1999
<CASH> 572
<INT-BEARING-DEPOSITS> 3,280
<FED-FUNDS-SOLD> 0
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 5,698
<INVESTMENTS-CARRYING> 1,131
<INVESTMENTS-MARKET> 1,076
<LOANS> 41,516
<ALLOWANCE> 335
<TOTAL-ASSETS> 52,936
<DEPOSITS> 40,827
<SHORT-TERM> 0
<LIABILITIES-OTHER> 664
<LONG-TERM> 0
0
0
<COMMON> 77
<OTHER-SE> 11,368
<TOTAL-LIABILITIES-AND-EQUITY> 52,936
<INTEREST-LOAN> 820
<INTEREST-INVEST> 98
<INTEREST-OTHER> 37
<INTEREST-TOTAL> 955
<INTEREST-DEPOSIT> 466
<INTEREST-EXPENSE> 466
<INTEREST-INCOME-NET> 489
<LOAN-LOSSES> 9
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 297
<INCOME-PRETAX> 228
<INCOME-PRE-EXTRAORDINARY> 228
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 142
<EPS-PRIMARY> .22
<EPS-DILUTED> .22
<YIELD-ACTUAL> 3.83
<LOANS-NON> 343
<LOANS-PAST> 0
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 326
<CHARGE-OFFS> 0
<RECOVERIES> 0
<ALLOWANCE-CLOSE> 335
<ALLOWANCE-DOMESTIC> 335
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
