FORM 10-QSB
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20552
(Mark One)
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 1998
-----------------------------------------
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from ____________ to _______________
Commission File No. 0-23433
WAYNE SAVINGS BANCSHARES, INC.
(Exact name of registrant as specified in its charter)
United States 31-1557791
State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
151 North Market Street
Wooster, Ohio 44691
(Address of principal (Zip Code)
executive office)
Registrant's telephone number, including area code: (330) 264-5767
Check whether the issuer: (1) has filed all reports required to be filed by
Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding
12 months (or for such shorter period that the registrant was required to file
such reports) and (2) has been subject to such filing requirements for the past
90 days.
Yes X No
As of August 5, 1998, the latest practicable date, 2,486,653 shares of the
registrant's common stock, $1.00 par value, were issued and outstanding.
Page 1 of 14 pages
<PAGE>
Wayne Savings Bancshares, Inc.
INDEX
Page
PART I - FINANCIAL INFORMATION
Consolidated Statements of Financial Condition 3
Consolidated Statements of Earnings 4
Consolidated Statements of Cash Flows 5
Notes to Consolidated Financial Statements 7
Management's Discussion and Analysis of
Financial Condition and Results of
Operations 10
PART II - OTHER INFORMATION 13
SIGNATURES 14
<PAGE>
<TABLE>
Wayne Savings Bancshares, Inc.
<CAPTION>
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(In thousands, except share data)
June 30, March 31,
ASSETS 1998 1998
<S> <C> <C>
Cash and due from banks $ 1,437 $ 1,422
Federal funds sold 3,331 4,100
Interest-bearing deposits in other financial institutions 10,578 7,647
------- -------
Cash and cash equivalents 15,346 13,169
Certificates of deposit in other financial institutions 1,500 8,500
Investment securities - at amortized cost, approximate
market value of $15,732 and $13,335 as of June 30, 1998
and March 31, 1998 15,938 13,401
Mortgage-backed securities available for sale - at market 6,931 4,032
Mortgage-backed securities - at cost, approximate
market value of $173 and $245 as of June 30, 1998
and March 31, 1998 171 243
Loans receivable - net 205,745 206,685
Loans held for sale - at lower of cost or market 785 1,194
Real estate acquired through foreclosure 883 946
Office premises and equipment - at depreciated cost 6,454 6,461
Federal Home Loan Bank stock - at cost 2,768 2,719
Accrued interest receivable on loans 1,155 1,152
Accrued interest receivable on mortgage-backed securities 35 23
Accrued interest receivable on investments and
interest-bearing deposits 287 180
Prepaid expenses and other assets 1,404 1,047
------- -------
Total assets $259,402 $259,752
======= =======
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits $217,415 $217,621
Advances from the Federal Home Loan Bank 16,000 16,000
Advances by borrowers for taxes and insurance 162 783
Accrued interest payable 190 197
Accounts payable on mortgage loans serviced for others 151 199
Other liabilities 373 291
Accrued federal income taxes 165 1
Deferred federal income taxes 231 234
------- -------
Total liabilities 234,687 235,326
Stockholders' equity
Common stock (20,000,000 shares of $1.00 par value authorized; 2,486,188 and
2,258,007 shares issued at June 30, 1998
and March 31, 1998) 2,486 2,258
Additional paid-in capital 12,399 5,963
Retained earnings - substantially restricted 9,828 16,198
Less 357 shares of treasury stock (10) (10)
Unrealized gains on securities available for sale, net of related tax effects 12 17
------- -------
Total stockholders' equity 24,715 24,426
------- -------
Total liabilities and stockholders' equity $259,402 $259,752
======= =======
</TABLE>
3
<PAGE>
<TABLE>
Wayne Savings Bancshares, Inc.
<CAPTION>
CONSOLIDATED STATEMENTS OF EARNINGS
For the three months ended June 30,
(In thousands, except share data)
1998 1997
<S> <C> <C>
Interest income
Loans $4,294 $4,280
Mortgage-backed securities 71 15
Investment securities 219 260
Interest-bearing deposits and other 281 237
----- -----
Total interest income 4,865 4,792
Interest expense
Deposits 2,607 2,518
Borrowings 194 236
----- -----
Total interest expense 2,801 2,754
----- -----
Net interest income 2,064 2,038
Provision for losses on loans 15 15
----- -----
Net interest income after provision for
losses on loans 2,049 2,023
Other income
Gain on sale of loans 89 57
Gain on sale of assets 1 -
Service fees, charges and other operating 170 151
----- -----
Total other income 260 208
General, administrative and other expense
Employee compensation and benefits 837 778
Occupancy and equipment 272 233
Federal deposit insurance premiums 50 51
Franchise taxes 82 76
Other operating 345 328
----- -----
Total general, administrative and other expense 1,586 1,466
----- -----
Earnings before income taxes 723 765
Federal income taxes
Current 246 216
Deferred - 45
----- -----
Total federal income taxes 246 261
----- -----
NET EARNINGS $ 477 $ 504
===== =====
EARNINGS PER SHARE
Basic $0.19 $0.20
==== ====
Diluted $0.19 $0.20
==== ====
</TABLE>
4
<PAGE>
<TABLE>
Wayne Savings Bancshares, Inc.
<CAPTION>
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the three months ended June 30,
(In thousands)
1998 1997
<S> <C> <C>
Cash flows from operating activities:
Net earnings for the period $ 477 $ 504
Adjustments to reconcile net earnings to net cash
provided by (used in) operating activities:
Amortization of discounts and premiums on loans,
investments and mortgage-backed securities - net 6 18
Amortization of deferred loan origination fees (159) (87)
Amortization expense of stock benefit plans -- 14
Depreciation and amortization 116 96
Loans originated for sale in the secondary market (3,580) (2,484)
Proceeds from sale of loans 3,840 1,829
Gain on sale of loans (51) (30)
Provision for losses on loans 15 15
Federal Home Loan Bank stock dividends (49) (46)
Increase (decrease) in cash due to changes in:
Accrued interest receivable on loans (3) (16)
Accrued interest receivable on mortgage-backed securities (12) 2
Accrued interest receivable on investments and interest-bearing deposits (107) (157)
Prepaid expenses and other assets (357) (111)
Accrued interest payable (7) (54)
Accounts payable on mortgage loans serviced for others (48) 131
Other liabilities 82 18
Federal income taxes
Current 164 224
Deferred (3) 45
------ ------
Net cash provided by (used in) operating activities 324 (89)
Cash flows provided by (used in) investing activities:
Purchase of investment securities (4,070) (500)
Proceeds from maturity of investment securities 1,537 4
Purchase of mortgaged-backed securities (3,331) -
Principal repayments on mortgage-backed securities 481 131
Loan principal repayments 19,109 12,964
Loan disbursements (17,846) (11,389)
Purchase of office premises and equipment - net (109) (682)
Proceeds from sale of real estate acquired through foreclosure 63 -
Additions to real estate acquired through foreclosure - (11)
Decrease in certificates of deposit in other financial institutions 7,000 2,000
------ ------
Net cash provided by investing activities 2,834 2,517
------ ------
Net cash provided by operating and investing activities
(balance carried forward) 3,158 2,428
------ ------
</TABLE>
5
<PAGE>
<TABLE>
Wayne Savings Bancshares, Inc.
<CAPTION>
CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)
For the three months ended June 30,
(In thousands)
1998 1997
<S> <C> <C>
Net cash provided by operating and investing activities
(balance brought forward) $ 3,158 $ 2,428
Cash flows provided by (used in) financing activities:
Net increase (decrease) in deposit accounts (206) 1,366
Proceeds from Federal Home Loan Bank advances 7,000 1,000
Repayment of Federal Home Loan Bank advances (7,000) (1,000)
Advances by borrowers for taxes and insurance (621) 183
Proceeds from exercise of stock options 15 15
Dividends paid on common stock (169) (168)
------ ------
Net cash provided by (used in) financing activities (981) 1,396
------ ------
Net increase in cash and cash equivalents 2,177 3,824
Cash and cash equivalents at beginning of period 13,169 7,606
------ ------
Cash and cash equivalents at end of period $15,346 $11,430
====== ======
Supplemental disclosure of cash flow information:
Cash paid during the period for:
Federal income taxes $ 85 $ -
====== =====
Interest on deposits and borrowings $ 2,808 $ 2,808
====== ======
Supplemental disclosure of noncash investing activities:
Unrealized gains (losses) on securities designated as
available for sale, net of related tax effects $ (5) $ 1
======= ======
Recognition of mortgage servicing rights in accordance
with SFAS No. 125 $ 38 $ 27
======= ======
</TABLE>
6
<PAGE>
Wayne Savings Bancshares, Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
For the three months ended June 30, 1998
1. Basis of Presentation
The accompanying unaudited consolidated financial statements were
prepared in accordance with instructions for Form 10-QSB and,
therefore, do not include information or footnotes necessary for a
complete presentation of financial position, results of operations and
cash flows in conformity with generally accepted accounting principles.
Accordingly, these financial statements should be read in conjunction
with the financial statements and notes thereto of Wayne Savings
Bancshares, Inc. included in the Annual Report on Form 10-KSB for the
year ended March 31, 1998.
Effective November 25, 1997, Wayne Savings Community Bank (the
"Company"), formerly named The Wayne Savings and Loan Company,
completed its reorganization into a two-tier mutual holding company
structure with the establishment of a stock holding company as parent
of the Company. In the reorganization, each share of Wayne Savings
Community Bank's common stock was automatically converted into one
share of Wayne Savings Bancshares, Inc. common stock. The
reorganization of the Company was structured as a tax-free
reorganization and was accounted for in the same manner as a
pooling-of-interests. Wayne Savings Community Bank is now the
wholly-owned subsidiary of Wayne Savings Bancshares, Inc., the stock
holding company ("Wayne").
In the opinion of management, all adjustments (consisting only of
normal recurring accruals) which are necessary for a fair presentation
of the financial statements have been included. The results of
operations for the three month periods ended June 30, 1998 and 1997 are
not necessarily indicative of the results which may be expected for an
entire fiscal year.
2. Principles of Consolidation
The accompanying consolidated financial statements include the accounts
of Wayne and the Company. All significant intercompany items have been
eliminated.
3. Earnings Per Share
Basic earnings per share is computed based upon the weighted-average
shares outstanding during the period, less shares in the ESOP that are
unallocated and not committed to be released. The Company had no
unallocated ESOP shares during the three months ended June, 30, 1998.
Weighted-average common shares outstanding totaled 2,483,571 for the
three month period ended June 30, 1998. Weighted average common shares
outstanding, which gives effect to 5,517 unallocated ESOP shares,
totaled 2,467,824 for the three month period ended June 30, 1997.
Diluted earnings per share is computed taking into consideration common
shares outstanding and dilutive potential common shares to be issued
under Wayne's stock option plan. Weighted-average common shares deemed
outstanding for purposes of computing diluted earnings per share
totaled 2,520,277 and 2,511,706 for the three month periods ended June
30, 1998 and 1997, respectively.
7
<PAGE>
Wayne Savings Bancshares, Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
For the three months ended June 30, 1998
4. Effects of Recent Accounting Pronouncements
In June 1996, the Financial Accounting Standards Board (the "FASB")
issued Statement of Financial Accounting Standards ("SFAS") No. 125,
"Accounting for Transfers and Servicing of Financial Assets and
Extinguishments of Liabilities", that provides accounting guidance on
transfers of financial assets, servicing of financial assets, and
extinguishment of liabilities. SFAS No. 125 introduces an approach to
accounting for transfers of financial assets that provides a means of
dealing with more complex transactions in which the seller disposes of
only a partial interest in the assets, retains rights or obligations,
makes use of special purpose entities in the transaction, or otherwise
has continuing involvement with the transferred assets.
The new accounting method, the financial components approach, provides
that the carrying amount of the financial assets transferred be
allocated to components of the transaction based on their relative fair
values. SFAS No. 125 provides criteria for determining whether control
of assets has been relinquished and whether a sale has occurred. If the
transfer does not qualify as a sale, it is accounted for as a secured
borrowing. Transactions subject to the provisions of SFAS No. 125
include, among others, transfers involving repurchase agreements,
securitizations of financial assets, loan participations, factoring
arrangements, and transfers of receivables with recourse. An entity
that undertakes an obligation to service financial assets recognizes
either a servicing asset or liability for the servicing contract
(unless related to a securitization of assets, and all the securitized
assets are retained and classified as held-to-maturity). A servicing
asset or liability that is purchased or assumed is initially recognized
at its fair value. Servicing assets and liabilities are amortized in
proportion to and over the period of estimated net servicing income or
net servicing loss and are subject to subsequent assessments for
impairment based on fair value.
SFAS No. 125 provides that a liability is removed from the balance
sheet only if the debtor either pays the creditor and is relieved of
its obligation for the liability or is legally released from being the
primary obligor.
SFAS No. 125 is effective for transfers and servicing of financial
assets and extinguishments of liabilities occurring after December 31,
1997, and is to be applied prospectively. Earlier or retroactive
application is not permitted. Management adopted SFAS No. 125 effective
January 1, 1998, as required, without material effect on the Company's
financial position or results of operations.
8
<PAGE>
Wayne Savings Bancshares, Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
For the three months ended June 30, 1998
4. Effects of Recent Accounting Pronouncements (continued)
In June 1997, the FASB issued SFAS No. 130, "Reporting Comprehensive
Income." SFAS No. 130 establishes standards for reporting and display
of comprehensive income and its components (revenues, expenses, gains
and losses) in a full set of general-purpose financial statements. SFAS
No. 130 requires that all items that are required to be recognized
under accounting standards as components of comprehensive income be
reported in a financial statement that is displayed with the same
prominence as other financial statements. It does not require a
specific format for that financial statement but requires that an
enterprise display an amount representing total comprehensive income
for the period in that financial statement.
SFAS No. 130 requires that an enterprise (a) classify items of other
comprehensive income by their nature in a financial statement and (b)
display the accumulated balance of other comprehensive income
separately from retained earnings and additional paid-in capital in the
equity section of a statement of financial position. SFAS No. 130 is
effective for fiscal years beginning after December 15, 1997.
Reclassification of financial statements for earlier periods provided
for comparative purposes is required. Management adopted SFAS No. 130
effective April 1, 1998, as required, without material impact on the
Corporation's financial statements. Comprehensive income totaled
$472,000 and $505,000 for the three month periods ended June 30, 1998
and 1997, respectively. The components of comprehensive income
consisted solely of unrealized gains and losses on securities
designated as available for sale, net of related tax effects, totaling
a loss of $5,000 and a gain of $1,000 for those respective periods.
In June 1997, the FASB issued SFAS No. 131, "Disclosures about Segments
of an Enterprise and Related Information." SFAS No. 131 significantly
changes the way that public business enterprises report information
about operating segments in annual financial statements and requires
that those enterprises report selected information about reportable
segments in interim financial reports issued to shareholders. It also
establishes standards for related disclosures about products and
services, geographic areas and major customers. SFAS No. 131 uses a
"management approach" to disclose financial and descriptive information
about the way that management organizes the segments within the
enterprise for making operating decisions and assessing performance.
For many enterprises, the management approach will likely result in
more segments being reported. In addition, SFAS No. 131 requires
significantly more information to be disclosed for each reportable
segment than is presently being reported in annual financial statements
and also requires that selected information be reported in interim
financial statements. SFAS No. 131 is effective for fiscal years
beginning after December 15, 1997. SFAS No. 131 is not expected to have
a material impact on the Corporation's financial statements.
9
<PAGE>
Wayne Savings Bancshares, Inc.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
Discussion of Financial Condition Changes from March 31, 1998 to June 30, 1998
At June 30, 1998, Wayne Savings Bancshares, Inc. ("Wayne"), the stock holding
company parent of Wayne Savings Community Bank (the "Company"), had total assets
of $259.4 million, a decrease of $350,000, or 0.1%, from March 31, 1998.
Cash and due from banks, federal funds sold, interest-bearing deposits,
certificates of deposit and investment securities totaled approximately $32.8
million, a decrease of approximately $2.3 million, from March 31, 1998 levels.
Regulatory liquidity approximated 14.8% at June 30, 1998, compared to 16.0% at
March 31, 1998.
Loans receivable decreased by approximately $1.3 million from the March 31, 1998
total. This decrease resulted from principal repayments of $19.1 million and
sales of $3.8 million, which were partially offset by loan disbursements of
$21.4 million. The allowance for loan losses totaled $736,000 at June 30, 1998,
as compared to $721,000 at March 31, 1998. Nonperforming loans totaled $353,000
at June 30, 1998 and $308,000 at March 31, 1998. The allowance for loan losses
totaled 208.5% and 234.1% of nonperforming loans at June 30, 1998 and March 31,
1998, respectively. Although management believes that its allowance for loan
losses at June 30, 1998, is adequate based upon the available facts and
circumstances, there can be no assurance that additions to such allowance will
not be necessary in future periods, which would adversely affect the Company's
results of operations.
Deposits declined by approximately $206,000 to a total of $217.4 million at June
30, 1998. The decline in deposits generally reflects the effect of withdrawals
relating to the lower interest rate environment.
The Company is subject to capital standards which generally require the
maintenance of regulatory capital sufficient to meet each of three tests,
hereinafter described as the tangible capital requirement, the core capital
requirement and the risk-based capital requirement. At June 30, 1998, the
Company's tangible and core capital of $24.1 million, or 9.3%, exceeded the
minimum 1.5% and 3.0% requirements of $3.9 million and $7.8 million,
respectively, by $20.2 million and $16.3 million. The Company's risk-based
capital of $24.9 million, or 17.5%, exceeded the 8.0% minimum requirement by
approximately $13.5 million.
Comparison of Operating Results for the Three Month Periods Ended June 30, 1998
and 1997
Net earnings totaled $477,000 for the three months ended June 30, 1998, as
compared to net earnings of $504,000 for the same period in 1997, a decrease of
$27,000. The decrease in net earnings resulted primarily from an increase of
$120,000, or 8.2%, in general, administrative and other expense, which was
partially offset by increases of $26,000, or 1.3%, in net interest income and
$52,000, or 25.0% in other income.
10
<PAGE>
Wayne Savings Bancshares, Inc.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS (CONTINUED)
Comparison of Operating Results for the Three Month Periods Ended June 30, 1998
and 1997 (continued)
Net Interest Income
Interest on loans and mortgage-backed securities increased by $70,000, or 1.6%,
for the three months ended June 30, 1998, from the same period in 1997. The
increase in interest income resulted primarily from a $73,000 increase in loan
fee income. The increase in loan fee income resulted primarily from accelerated
fee income due to refinances and loan sales.
Interest on investments and interest-bearing deposits decreased by $3,000, or
0.6%, during the three months ended June 30, 1998, as compared to the same
period in 1997.
Interest expense on deposits and borrowings increased by $47,000, or 1.7%,
during the three months ended June 30, 1998, over the same period in 1997. The
increase can be primarily attributed to an increase in the average balance of
interest-bearing liabilities, which increased by $5.4 million from $212.1
million, coupled with an increase in the average cost of funds year to year.
As a result of the foregoing changes in interest income and interest expense,
net interest income increased by $26,000, or 1.3%, during the three months ended
June 30, 1998, as compared to the same period in 1997.
Provision for Losses on Loans
A provision for losses on loans is charged to earnings to bring the total
allowance for loan losses to a level considered appropriate by management based
on historical experience, the volume and type of lending conducted by the
Company, the status of past due principal and interest payments, general
economic conditions, particularly as such conditions relate to the Company's
market area, and other factors related to the collectibility of the Company's
loan portfolio. As a result of such analysis, management recorded a $15,000
provision for losses on loans during the three months ended June 30, 1998,
unchanged from the same period in 1997. The provision for losses on loans is
recorded based upon management's assessment of the risk inherent in the loan
portfolio and management's assessment of the collateral securing non-performing
loans. There can be no assurance that the loan loss allowance of the Company
will be adequate to cover losses on nonperforming assets in the future.
Other Income
Other income totaled $260,000 the three months ended June 30, 1998, an increase
of $52,000, or 25.0%, over the comparable 1997 period. This increase was due
primarily to the $32,000, or 56.1%, increase in gain on sale of loans coupled
with a $19,000, or 12.6%, increase in service fees, charges and other operating
income.
11
<PAGE>
Wayne Savings Bancshares, Inc.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS (CONTINUED)
Comparison of Operating Results for the Three Month Periods Ended June 30, 1998
and 1997 (continued)
General, Administrative and Other Expense
General, administrative and other expense increased by $120,000, or 8.2%, during
the current three month period, due primarily to a $59,000, or 7.6%, increase in
employee compensation and benefits, a $39,000, or 16.7%, increase in occupancy
and equipment and a $17,000, or 5.2%, increase in other operating expenses.
Federal Income Taxes
The provision for federal income taxes amounted to $246,000 for the three months
ended June 30, 1998, a decrease of $15,000 as compared to the same period in
1997. The decrease resulted primarily from a decrease in pretax earnings year to
year. The effective tax rates for the three months ended June 30, 1998 and 1997
were 34.0% and 34.1%, respectively.
Other Matters
As with all providers of financial services, the Company's operations are
heavily dependent on information technology systems. The Company is addressing
the potential problems associated with the possibility that the computers that
control or operate the Company's information technology system and
infrastructure may not be programmed to read four-digit date codes and, upon
arrival of the year 2000, may recognize the two-digit code "00" as the year
1900, causing systems to fail to function or to generate erroneous data. The
Company is working with the companies that supply or service its information
technology systems to identify and remedy any year 2000 related problems.
As of the date of this Form 10-QSB, the Company has not identified any specific
expenses that are reasonably likely to be incurred by the Company in connection
with this issue and does not expect to incur significant expense to implement
the necessary corrective measures. No assurance can be given, however, that
significant expense will not be incurred in future periods. In the event that
the Company is ultimately required to purchase replacement computer systems,
programs and equipment, or incur substantial expense to make the Company's
current systems, programs and equipment year 2000 compliant, the Company's net
earnings and financial condition could be adversely affected.
In addition to possible expense related to its own systems, the Company could
incur losses if loan payments are delayed due to year 2000 problems affecting
any major borrowers in the Company's primary market area. Because the Company's
loan portfolio is highly diversified with regard to individual borrowers and
types of businesses and the Company's primary market area is not significantly
dependent upon one employer or industry, the Company does not expect any
significant or prolonged difficulties that will affect net earnings or cash
flow.
12
<PAGE>
Wayne Savings Bancshares, Inc.
PART II
ITEM 1. Legal Proceedings
Not applicable
ITEM 2. Changes in Securities and Use of Proceeds
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
The Board of Directors of Wayne Savings Bancshares, Inc. has
authorized the repurchase of up to 124,322 shares, or approximately 5%
of Wayne's outstanding stock, over the next 12 months. Any repurchased
shares, will be held as treasury stock and will be available for
general corporate purposes.
ITEM 6. Exhibits and Reports on Form 8-K
Exhibits:
27 Financial Data Schedule for the three month
period ended June 30, 1998.
13
<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.
Date: August 10, 1998 By: /s/Charles F. Finn
--------------------------------- ------------------
Charles F. Finn
Chairman and President
DDate: August 10, 1998 By: /s/Anthony Volpe
--------------------------------- ------------------
Anthony Volpe
Vice President/Controller
14
<TABLE> <S> <C>
<ARTICLE> 9
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> MAR-31-1998
<PERIOD-START> APR-01-1998
<PERIOD-END> JUN-30-1998
<CASH> 1,437
<INT-BEARING-DEPOSITS> 10,578
<FED-FUNDS-SOLD> 3,331
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 6,931
<INVESTMENTS-CARRYING> 17,609
<INVESTMENTS-MARKET> 17,405
<LOANS> 206,530
<ALLOWANCE> 736
<TOTAL-ASSETS> 259,402
<DEPOSITS> 217,415
<SHORT-TERM> 0
<LIABILITIES-OTHER> 1,272
<LONG-TERM> 16,000
0
0
<COMMON> 2,486
<OTHER-SE> 22,229
<TOTAL-LIABILITIES-AND-EQUITY> 24,715
<INTEREST-LOAN> 4,294
<INTEREST-INVEST> 290
<INTEREST-OTHER> 281
<INTEREST-TOTAL> 4,865
<INTEREST-DEPOSIT> 2,607
<INTEREST-EXPENSE> 2,801
<INTEREST-INCOME-NET> 2,064
<LOAN-LOSSES> 15
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 1,586
<INCOME-PRETAX> 723
<INCOME-PRE-EXTRAORDINARY> 477
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 477
<EPS-PRIMARY> .19
<EPS-DILUTED> .19
<YIELD-ACTUAL> 3.33
<LOANS-NON> 353
<LOANS-PAST> 29
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 721
<CHARGE-OFFS> 0
<RECOVERIES> 0
<ALLOWANCE-CLOSE> 736
<ALLOWANCE-DOMESTIC> 0
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 736
</TABLE>
