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, 1999
----------------------------------------------
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 4, 1999, the latest practicable date, 2,603,750 shares of the
registrant's common stock, $1.00 par value,
were issued and outstanding.
Page 1 of 15 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 Comprehensive Income 5
Consolidated Statements of Cash Flows 6
Notes to Consolidated Financial Statements 8
Management's Discussion and Analysis of
Financial Condition and Results of
Operations 10
PART II - OTHER INFORMATION 14
SIGNATURES 15
<PAGE>
<TABLE>
Wayne Savings Bancshares, Inc.
<CAPTION>
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(In thousands, except share data)
June 30, March 31,
ASSETS 1999 1999
<S> <C> <C>
Cash and due from banks $ 2,093 $ 1,540
Federal funds sold 5,025 4,295
Interest-bearing deposits in other financial institutions 9,813 10,410
------- -------
Cash and cash equivalents 16,931 16,245
Certificates of deposit in other financial institutions 6,000 6,000
Investment securities - at amortized cost, approximate
market value of $12,539 and $11,752 as of June 30, 1999
and March 31, 1999 12,780 11,830
Mortgage-backed securities available for sale - at market 10,174 6,411
Mortgage-backed securities - at cost, approximate
market value of $632 and $811 as of June 30, 1999
and March 31, 1999 656 819
Loans receivable - net 223,947 214,094
Loans held for sale - at lower of cost or market - 1,585
Real estate acquired through foreclosure 41 41
Office premises and equipment - at depreciated cost 8,543 7,748
Federal Home Loan Bank stock - at cost 2,998 2,919
Accrued interest receivable on loans 1,154 1,134
Accrued interest receivable on mortgage-backed securities 39 28
Accrued interest receivable on investments and interest-bearing deposits 271 184
Prepaid expenses and other assets 1,358 1,933
Prepaid federal income taxes 99 303
------- -------
Total assets $284,991 $271,274
======= =======
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits $249,442 $235,327
Advances from the Federal Home Loan Bank 9,000 9,000
Advances by borrowers for taxes and insurance 423 821
Accrued interest payable 194 179
Accounts payable on mortgage loans serviced for others 202 108
Other liabilities 371 497
Deferred federal income taxes 364 386
------- -------
Total liabilities 259,996 246,318
Stockholders' equity
Common stock (20,000,000 shares of $1.00 par value authorized;
2,630,033 and 2,505,082 shares issued at June 30, 1999
and March 31, 1999) 2,630 2,505
Additional paid-in capital 14,384 12,480
Retained earnings - substantially restricted 8,543 10,437
Less 25,683 and 22,583 shares, respectively, of treasury stock - at cost (520) (468)
Unrealized gains (losses) on securities available for sale, net of related tax effects (42) 2
------- -------
Total stockholders' equity 24,995 24,956
------- -------
Total liabilities and stockholders' equity $284,991 $271,274
======= =======
</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)
1999 1998
<S> <C> <C>
Interest income
Loans $4,304 $4,294
Mortgage-backed securities 108 71
Investment securities 170 219
Interest-bearing deposits and other 324 281
----- -----
Total interest income 4,906 4,865
Interest expense
Deposits 2,682 2,607
Borrowings 127 194
----- -----
Total interest expense 2,809 2,801
----- -----
Net interest income 2,097 2,064
Provision for losses on loans 21 15
----- -----
Net interest income after provision for
losses on loans 2,076 2,049
Other income
Gain on sale of loans 20 89
Gain on sale of assets 1 1
Service fees, charges and other operating 169 170
----- -----
Total other income 190 260
General, administrative and other expense
Employee compensation and benefits 877 837
Occupancy and equipment 342 272
Federal deposit insurance premiums 50 50
Franchise taxes 88 82
Other operating 392 345
----- -----
Total general, administrative and other expense 1,749 1,586
----- -----
Earnings before income taxes 517 723
Federal income taxes
Current 376 249
Deferred (201) (3)
----- -----
Total federal income taxes 175 246
----- -----
NET EARNINGS $ 342 $ 477
===== =====
EARNINGS PER SHARE
Basic $0.13 $0.18
==== ====
Diluted $0.13 $0.18
==== ====
</TABLE>
4
<PAGE>
<TABLE>
Wayne Savings Bancshares, Inc.
<CAPTION>
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
For the three months ended June 30,
(In thousands, except share data)
1999 1998
<S> <C> <C>
Net earnings $342 $477
Other comprehensive income (loss) net of tax:
Unrealized holding losses on securities during the period, net of tax (44) (5)
--- ---
Comprehensive income $298 $472
=== ===
Accumulated comprehensive income (loss) $(42) $ 2
=== ===
</TABLE>
5
<PAGE>
<TABLE>
Wayne Savings Bancshares, Inc.
<CAPTION>
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the three months ended June 30,
(In thousands)
1999 1998
<S> <C> <C>
Cash flows from operating activities:
Net earnings for the period $ 342 $ 477
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 4 6
Amortization of deferred loan origination fees (116) (159)
Depreciation and amortization 168 116
Loans originated for sale in the secondary market (1,750) (3,580)
Proceeds from sale of loans 3,321 3,840
(Gain) loss on sale of loans 14 (51)
Provision for losses on loans 21 15
Federal Home Loan Bank stock dividends (51) (49)
Increase (decrease) in cash due to changes in:
Accrued interest receivable on loans (20) (3)
Accrued interest receivable on mortgage-backed securities (11) (12)
Accrued interest receivable on investments and interest-bearing deposits (86) (107)
Prepaid expenses and other assets 574 (357)
Accrued interest payable 15 (7)
Accounts payable on mortgage loans serviced for others 94 (48)
Other liabilities (126) 82
Federal income taxes
Current 25 164
Deferred (201) (3)
------ ------
Net cash provided by operating activities 2,217 324
Cash flows provided by (used in) investing activities:
Purchase of investment securities (2,000) (4,070)
Proceeds from maturity of investment securities 1,062 1,537
Purchase of mortgaged-backed securities (4,835) (3,331)
Principal repayments on mortgage-backed securities 1,164 481
Loan principal repayments 12,225 19,109
Loan disbursements (21,669) (17,846)
Purchase of office premises and equipment - net (952) (109)
Proceeds from sale of real estate acquired through foreclosure - 63
Decrease in certificates of deposit in other financial institutions - 7,000
------ ------
Net cash provided by (used in) investing activities (15,005) 2,834
------ ------
Net cash provided by (used in) operating and investing activities
(balance carried forward) (12,788) 3,158
------ ------
</TABLE>
6
<PAGE>
<TABLE>
Wayne Savings Bancshares, Inc.
<CAPTION>
CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)
For the three months ended June 30,
(In thousands)
1999 1998
<S> <C> <C>
Net cash provided by (used in) operating and investing activities
(balance brought forward) $(12,788) $ 3,158
Cash flows provided by (used in) financing activities:
Net increase (decrease) in deposit accounts 14,115 (206)
Proceeds from Federal Home Loan Bank advances - 7,000
Repayment of Federal Home Loan Bank advances - (7,000)
Advances by borrowers for taxes and insurance (398) (621)
Proceeds from exercise of stock options 1 15
Dividends paid on common stock (192) (169)
Purchase of treasury shares (52) -
------- ------
Net cash provided by (used in) financing activities 13,474 (981)
------- ------
Net increase in cash and cash equivalents 686 2,177
Cash and cash equivalents at beginning of period 16,245 13,169
------- ------
Cash and cash equivalents at end of period $ 16,931 $15,346
======= ======
Supplemental disclosure of cash flow information:
Cash paid during the period for:
Federal income taxes $ - $ 85
======= ======
Interest on deposits and borrowings $ 2,794 $ 2,808
======= ======
Supplemental disclosure of noncash investing activities:
Unrealized losses on securities designated as
available for sale, net of related tax effects $ (44) $ (5)
======= ======
Recognition of mortgage servicing rights in accordance
with SFAS No. 125 $ 34 $ 38
======= ======
</TABLE>
7
<PAGE>
Wayne Savings Bancshares, Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
For the three months ended June 30, 1999
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, 1999.
The accompanying consolidated financial statements include Wayne
Savings Bancshares, Inc. (the "Company") and its wholly-owned
subsidiary. In fiscal 1999, Wayne Savings Community Bank ("Wayne
Savings" or the "Bank") formed a new federal savings bank subsidiary in
North Canton, Ohio named Village Savings Bank, F.S.B. ("Village"),
together referred to as "the Banks".
During the quarter ended June 30, 1999, Wayne Savings opened the new
Madison South office at the southern perimeter of Wooster, as planned.
Additionally, Wayne Savings also opened its Northside office on July
12, 1999. The new office is in leased office space formerly occupied by
a local commercial bank. These two openings increases the number of
Wayne Savings full-service offices from six to eight, with four located
in Wooster.
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 period ended June 30, 1999 are not
necessarily indicative of the results which may be expected for an
entire fiscal year.
2. Principles of Consolidation
All significant intercompany transactions and balances have been
eliminated in the consolidation.
3. Earnings Per Share
Basic earnings per common share is computed based upon the weighted
average number of common shares outstanding during the period, less
shares in the ESOP that are unallocated and not committed to be
released. Diluted earnings per common share include the dilutive effect
of additional potential common shares issuable under the Company's
stock option plan. Earnings and dividends per share have been restated
for the stock split and all stock dividends through the date of
issuance of the financial statements. The computations were as follows:
8
<PAGE>
Wayne Savings Bancshares, Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
For the three months ended June 30, 1999
3. Earnings Per Share (continued)
<TABLE>
<CAPTION>
For the three months ended June 30, 1999 1998
<S> <C> <C>
Weighted average common shares
outstanding (basic) 2,604,350 2,607,750
Dilutive effect of assumed exercise
of stock options 20,807 38,541
--------- ---------
Weighted average common shares
outstanding (diluted) 2,625,157 2,646,291
========= =========
</TABLE>
4. Effects of Recent Accounting Pronouncements
In June 1998, the Financial Accounting Standards Board (the "FASB")
issued Statement of Financial Accounting Standards ("SFAS") No. 133,
"Accounting for Derivative Instruments and Hedging Activities," which
requires entities to recognize all derivatives in their financial
statements as either assets or liabilities measured at fair value. SFAS
No. 133 also specified new methods of accounting for hedging
transactions, prescribes the items and transactions that may be hedged,
and specifies detailed criteria to be met to qualify for hedge
accounting.
The definition of a derivative financial instrument is complex, but in
general, it is an instrument with one or more underlyings, such as an
interest rate or foreign exchange rate that is applied to a notional
amount, such as an amount of currency, to determine the settlement
amount(s). It generally requires no significant initial investment and
can be settled net or by delivery of an asset that is readily
convertible to cash. SFAS No. 133 applies to derivatives embedded in
other contracts, unless the underlyings of the embedded derivative is
clearly and closely related to the host contract.
SFAS No. 133, as amended by SFAS No. 137, is effective for fiscal years
beginning after June 15, 2000. On adoption, entities are permitted to
transfer held-to-maturity debt securities to the available-for-sale or
trading category without calling into question their intent to hold
other debt securities to maturity in the future. SFAS No. 133 is not
expected to have a material impact on the Company'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, 1999 to June 30, 1999
At June 30, 1999, the Company had total assets of $285.0 million, an increase of
$13.7 million, or 5.1%, over March 31, 1999.
Cash and due from banks, federal funds sold, interest-bearing deposits,
certificates of deposit and investment securities totaled approximately $35.7
million, an increase of approximately $1.6 million, over March 31, 1999 levels.
Regulatory liquidity approximated 13.8% at June 30, 1999, compared to 11.0% at
March 31, 1999.
Loans receivable increased by approximately $8.3 million, or 3.8%, over the
March 31, 1999 total. This increase resulted from loan disbursements of $23.4
million, which were partially offset by principal repayments of $12.2 million
and sales of $3.3 million. The allowance for loan losses totaled $706,000 at
June 30, 1999, as compared to $678,000 at March 31, 1999. Nonperforming loans
totaled $275,000 at June 30, 1999 and $280,000 at March 31, 1999. The allowance
for loan losses totaled 256.7% and 242.1% of nonperforming loans at June 30,
1999 and March 31, 1999, respectively. Although management believes that its
allowance for loan losses at June 30, 1999, 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 increased by approximately $14.1 million, or 6.0%, during the quarter,
to a total of $249.4 million at June 30, 1999. The increase in deposits was
primarily attributable to growth achieved at new branch office locations,
coupled with management's continuing efforts to achieve a moderate rate of
growth through marketing and business strategies.
The Banks are subject to capital standards which generally require the
maintenance of regulatory capital sufficient to meet each of three tests, the
tangible capital requirement, the core capital requirement and the risk-based
capital requirement. At June 30, 1999, both Wayne Savings and Village's
regulatory capital exceeded all minimum capital requirements.
Comparison of Operating Results for the Three Month Periods Ended June 30, 1999
and 1998
Net earnings totaled $342,000 for the three months ended June 30, 1999, as
compared to net earnings of $477,000 for the same period in 1998, a decrease of
$135,000, or 28.3%. The decrease in net earnings resulted primarily from an
increase of $163,000, or 10.3%, in general, administrative and other expense and
a decrease in other income of $70,000, or 26.9%, which were partially offset by
an increase of $33,000, or 1.6%, in net interest 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, 1999
and 1998 (continued)
Net Interest Income
Interest on loans and mortgage-backed securities totaled $4.4 million for the
three months ended June 30, 1999, an increase of $47,000, or 1.1%, over the same
period in 1998. The increase can be primarily attributed to a $16.0 million, or
7.5%, increase in the average balance of loans and mortgage-backed securities
outstanding.
Interest on investments and interest-bearing deposits decreased by $6,000, or
1.2%, during the three months ended June 30, 1999, as compared to the same
period in 1998, as a result of a slight decrease in the average balance from
year to year, coupled with a decrease in the average yield.
Interest expense on deposits and borrowings increased by $8,000, or 0.3%, during
the three months ended June 30, 1999, over the same period in 1998. The increase
can be primarily attributed to an $18.0 million, or 7.7%, increase in the
average balance of interest-bearing liabilities year to year.
As a result of the foregoing changes in interest income and interest expense,
net interest income increased by $33,000, or 1.6%, during the three months ended
June 30, 1999, as compared to the same period in 1998.
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 $21,000
provision for losses on loans during the three months ended June 30, 1999,
primarily due to growth in the loan portfolio coupled with management's
assessment of the collateral securing nonperforming loans. The provision for
losses on loans is recorded based upon management's assessment of the risk
inherent in the loan portfolio. 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 $190,000 for the three months ended June 30, 1999, a
decrease of $70,000, or 26.9%, from the comparable 1998 period. This decrease
was due primarily to the $69,000, or 77.5%, decrease in gain on sale of loans.
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, 1999
and 1998 (continued)
General, Administrative and Other Expense
General, administrative and other expense increased by $163,000, or 10.3%,
during the current three month period, due primarily to a $70,000, or 25.7%,
increase in occupancy and equipment, a $40,000, or 4.8%, increase in employee
compensation and benefits and a $47,000, or 13.6%, increase in other operating
expenses. The increases were due primarily to the costs associated with the
addition of Village and new branches as previously discussed.
Federal Income Taxes
The provision for federal income taxes amounted to $175,000 for the three months
ended June 30, 1999, a decrease of $71,000, or 28.9%, as compared to the same
period in 1998. The decrease resulted primarily from a $206,000, or 28.5%,
decrease in pretax earnings year to year. The effective tax rates for the three
months ended June 30, 1999 and 1998 were 33.8% and 34.0%, respectively.
Year 2000 Compliance Matters
The Year 2000 ("Y2K") issue is the result of computer programs using a two-digit
format, as opposed to four digits, to indicate the year. Such computer systems
will be unable to interpret dates beyond the year 1999, which could cause a
system failure or other computer errors, leasing to disruption in operations.
The potential impact is that date sensitive calculations would be based on
erroneous data or could cause a system failure. This affects all forms of
financial accounting including interest computation, due dates,
pensions/personnel benefits, and investments. It can also affect record keeping.
In 1997, the Company developed a five-phase program for Y2K information systems
compliance. Phase I is awareness which consisted of establishing a Y2K project
team and gaining executive-level support for resources necessary to perform
compliance work. Phase II is assessment which consisted of the identification of
all hardware, software, networks, automated teller machines, other various
processing platforms, and customer and vendor interdependencies affected by the
Y2K date change. Phase III is renovation consisting of hardware and software
upgrades, system replacements, vendor certification, and other associated
changes for known non-compliant applications. Phase IV is validation consisting
of testing hardware, software, and systems to assure Y2K compliance. Phase V is
implementation whereby a contingency plan is enacted for any system failing Y2K
testing.
The Company does not perform in-house programming. All systems have been
purchased from third-party vendors. Therefore, the primary thrust of the
Company's Y2K effort has been ongoing discussions and monitoring of vendors'
progress.
12
<PAGE>
Wayne Savings Bancshares, Inc.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS (CONTINUED)
Year 2000 Compliance Matters (continued)
The Company has received confirmation from its vendors that Y2K compliant
versions of their systems are available. The Company either had the compliant
version in place or has replaced a non-compliant version with the compliant one.
The most critical phase is validation. Although vendors have certified that
their systems are compliant, the Company plans to test these systems, using
critical future dates. There are numerous testing methodologies to cover the
unique interdependencies between the vendors and the Company. Testing
methodologies used by the Company will include point-to-point (tests verify the
ability of a financial institution to transmit data directly to another entity
of system); end-to-end (tests verify the ability of a financial institution
originating a transaction to transmit test data to a receiving entity or system
through an intermediary); and proxy (the service provider tests with a
representative sample of financial institutions who use a particular service on
the same platform).
The Company's Y2K action plan requires that mission-critical systems testing be
substantially completed by March 31, 1999. A mission-critical system is an
application or system that is vital to the successful continuance of a core
business activity. The Company complied with the March 31, 1999 deadline and all
mission-critical systems have been deemed Y2K compliant. Testing of material non
mission-critical systems began by March 31, 1999 and was completed by June 30,
1999.
The Company had budgeted approximately $50,000 for hard costs related to
renovation and testing. Approximately $30,000 of the budget has been expended.
The Company has developed a business resumption contingency plan for each
mission-critical system in the event that there are system failures at critical
dates. The contingency plan consists of: event timelines, business impact
analysis, alternative options, minimum acceptable levels of output and services,
and core business processes that need to be recovered. The contingency plan is
not static. It will receive constant attention through the remainder of the
year.
The Company expects that customers may desire to withdraw funds in the weeks
preceding the century date change. In order to address that potential
consequence, the Company will need to have sufficient liquid assets towards the
end of the year. The Company is currently significantly in excess of the OTS
liquidity requirements and anticipates remaining significantly in excess
throughout fiscal year 2000.
13
<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
On July 22,1999, the Annual Meeting of the Company's Stockholders was
held. Two directors were elected to terms expiring in 2002 by the
following votes:
Charles F. Finn For: 2,205,390 Withheld: 3,530
Joseph L. Retzler For: 2,205,610 Withheld: 3,310
One other matter was submitted to the stockholders, for which the
following votes were cast:
Ratification of the appointment of Grant Thornton LLP as
independent auditors of the Company for the fiscal year ended
March 31, 2000.
For: 2,197,953 Against: 1,548 Abstain: 9,419
ITEM 5. Other Information
The Board of Directors of Wayne Savings Bancshares, Inc. has
authorized to continue the repurchase of up to approximately 131,000
shares, or 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:
27.1 Financial Data Schedule for the three month
period ended June 30, 1999.
27.2 Restated Financial Data Schedule for the three
month period ended June 30, 1998.
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.
Date: August 10, 1999 By: /s/Charles F. Finn
Charles F. Finn
Chairman and President
Date: August 10, 1999 By: /s/Todd Tappel
Todd Tappel
Chief Financial Officer
15
<TABLE> <S> <C>
<ARTICLE> 9
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> MAR-31-2000
<PERIOD-START> APR-01-1999
<PERIOD-END> JUN-30-1999
<CASH> 2,093
<INT-BEARING-DEPOSITS> 9,813
<FED-FUNDS-SOLD> 5,025
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 10,174
<INVESTMENTS-CARRYING> 19,436
<INVESTMENTS-MARKET> 19,171
<LOANS> 223,947
<ALLOWANCE> 706
<TOTAL-ASSETS> 284,991
<DEPOSITS> 249,442
<SHORT-TERM> 0
<LIABILITIES-OTHER> 1,554
<LONG-TERM> 9,000
0
0
<COMMON> 2,630
<OTHER-SE> 22,365
<TOTAL-LIABILITIES-AND-EQUITY> 284,991
<INTEREST-LOAN> 4,304
<INTEREST-INVEST> 278
<INTEREST-OTHER> 324
<INTEREST-TOTAL> 4,906
<INTEREST-DEPOSIT> 2,682
<INTEREST-EXPENSE> 2,809
<INTEREST-INCOME-NET> 2,097
<LOAN-LOSSES> 21
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 1,749
<INCOME-PRETAX> 517
<INCOME-PRE-EXTRAORDINARY> 342
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 342
<EPS-BASIC> .13
<EPS-DILUTED> .13
<YIELD-ACTUAL> 3.17
<LOANS-NON> 249
<LOANS-PAST> 26
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 678
<CHARGE-OFFS> 1
<RECOVERIES> 8
<ALLOWANCE-CLOSE> 706
<ALLOWANCE-DOMESTIC> 0
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 706
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 9
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> MAR-31-1999
<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
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0
0
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</TABLE>
