UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
450 5TH STREET, N.W.
WASHINGTON, D. C. 20549
FORM 10-QSB
(Mark One)
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
--------------
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. 0-23571
PROGRESSIVE BANCORP, INC.
-------------------------
(Exact name of registrant as specified in its charter)
Delaware 36-4178818
-------- ---------------------
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
601-617 Court Street, Pekin, Illinois 61554
- --------------------------------------- ------------
(Address of principal executive office) (Zip Code)
Registrant's telephone number, including area code (309)-347-5101
--------------
Not applicable
- ------------------------------------------------------------------
(Former name, former address and former fiscal year, if changed since last
report)
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Sections 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 .
--- ---
Indicate the number of shares outstanding of the issuer's classes of common
stock, as of the latest practicable date.
Class Outstanding March 31, 1999
- ------------------------------------- --------------------------
Common Stock, par value $.01per share 174,473
<PAGE>
PROGRESSIVE BANCORP, INC. AND SUBSIDIARIES
<TABLE>
<CAPTION>
INDEX
Page
PART I. FINANCIAL INFORMATION
<S> <C>
Item 1. Financial Statements
Condensed Consolidated Balance Sheets as of March 31, 1999
(Unaudited) and September 30, 1998....................................................1
Condensed Consolidated Statements of Income (Unaudited)
for the three months ended March 31, 1999 and 1998
and the six months ended March 31, 1999 and 1998......................................2
Condensed Consolidated Statements of Cash Flows
(Unaudited) for the three months ended March 31, 1999
and 1998 and the six months ended March 31, 1999 and 1998.............................4
Notes to Condensed Consolidated Financial Statements.......................................5
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations...................................................7
</TABLE>
PART II. OTHER INFORMATION
<PAGE>
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
PROGRESSIVE BANCORP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In Thousands, Except Share Data)
<TABLE>
<CAPTION>
March 31,
1999 September 30,
(Unaudited) 1998
ASSETS
<S> <C> <C>
Cash and amounts due from banks $ 1,572 $ 1,639
Interest-bearing deposits 5,666 2,308
Money market investments and investment securities:
Held-to-maturity, at amortized cost (estimated fair
value of $1,553 and $4,299, respectively) 1,505 4,235
Available-for-sale, at fair value 9,875 6,827
Mortgage-backed securities:
Held-to-maturity, at amortized cost (estimated fair
value of $1,761 and $3,215, respectively) 1,747 3,183
Available-for-sale, at fair value 5,799 4,484
Loans receivable, net of allowance for loan loss of
$236 and $228, respectively 62,217 61,999
Other assets 2,830 2,577
---------- ----------
Total assets $ 91,211 $ 87,252
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits $ 73,258 $ 69,791
Borrowed funds 9,500 9,500
Accrued expenses and other liabilities 1,762 1,308
---------- ----------
Total liabilities 84,520 80,599
---------- ----------
Stockholders' equity:
Serial preferred stock, $.10 par value, 50,000 shares
authorized, no shares issued and outstanding - -
Common stock, $.01 par value, 250,000 shares
authorized, 174,473 shares issued 2 2
Paid-in surplus 1,430 1,430
Retained earnings, substantially restricted 6,589 6,452
Net unrealized gain (loss) on available-for-sale
securities, net of taxes (30) 69
---------- ----------
7,991 7,953
Treasury stock, 25,000 shares at cost (1,300) (1,300)
---------- ----------
Total stockholders' equity 6,691 6,653
---------- ----------
Total liabilities and stockholders' equity $ 91,211 $ 87,252
========== ==========
</TABLE>
See accompanying notes to condensed consolidated financialstatements.
1
<PAGE>
PROGRESSIVE BANCORP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In Thousands, Except Income Per Share Data)
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
March 31, March 31,
---------------------------- ---------------------------
1999 1998 1999 1998
---- ---- ---- ----
<S> <C> <C> <C> <C>
Interest income
Loans receivable:
First mortgage loans $ 956 $ 896 $ 1,883 $ 1,792
Other loans 287 283 571 566
Mortgage-backed securities 109 126 219 254
Interest-bearing deposits 61 39 110 91
Money market investments and
investment securities 170 211 344 403
------------ ------------ ------------ ------------
Total interest income 1,583 1,555 3,127 3,106
------------ ------------ ------------ ------------
Interest on deposits 873 849 1,757 1,728
Interest on borrowed funds 131 124 269 240
------------ ------------ ------------ ------------
Total interest expense 1,004 973 2,026 1,968
------------ ------------ ------------ ------------
Net interest income 579 582 1,101 1,138
Provision for loan losses 5 3 9 6
------------ ------------ ------------ ------------
Net interest income after provision
for loan losses 574 579 1,092 1,132
------------ ------------ ------------ ------------
Noninterest income
Travel agency fees 894 1,081 1,581 1,774
Net gain on sales of securities available-
for-sale - 32 - 32
Net gain on sales of loans held-for-sale - 38 - 59
Loan origination fees 26 39 61 65
Other 87 91 156 162
------------ ------------ ------------ ------------
Total noninterest income 1,007 1,281 1,798 2,092
------------ ------------ ------------ ------------
Noninterest expense
Travel agency cost of sales 846 1,022 1,509 1,689
Compensation and benefits 278 227 525 464
Other operating expenses 285 233 592 446
------------ ------------ ------------ ------------
Total noninterest expense 1,409 1,482 2,626 2,599
------------ ------------ ------------ ------------
</TABLE>
<PAGE>
PROGRESSIVE BANCORP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In Thousands, Except Income Per Share Data)
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
March 31, March 31,
---------------------------- ---------------------------
1999 1998 1999 1998
---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
Income before income taxes and
cumulative effect of change
in accounting principle $ 172 $ 378 $ 264 $ 625
Income taxes 60 145 94 234
------------ ------------ ------------ -----------
Income before cumulative effect
of change in accounting
principle 112 233 170 391
CUMULATIVE EFFECT ON PRIOR
YEARS (TO SEPTEMBER 30, 1998)
OF EXPENSING ORGANIZATIONAL
COSTS AS INCURRED, NET OF
INCOME TAXES OF $21 - - 33 -
------------ ------------ ------------ ------------
Net income $ 112 $ 233 $ 137 $ 391
============ ============ ============ ===========
BASIC INCOME Per share
Before cumulative effect of accounting
change $ .75 $ 1.38 $ 1.14 $ 2.32
Accounting change - - .22 -
------------ ------------ ------------ ------------
Basic income per share $ .75 $ 1.38 $ .92 $ 2.32
============ ============ ============ ============
DILUTED INCOME Per share
Before cumulative effect of accounting
change $ .73 $ 1.30 $ 1.10 $ 2.19
Accounting change - - .21 -
------------ ------------ ------------ ------------
Diluted income per share $ .73 $ 1.30 $ .89 $ 2.19
============ ============ ============ ============
Weighted average number of
common shares outstanding
Basic 149,473 168,181 149,473 168,176
============ ============ ============ ============
Diluted 154,105 178,776 154,467 178,776
============ ============ ============ ============
</TABLE>
See accompanying notes to condensed consolidated financial statements.
3
<PAGE>
PROGRESSIVE BANCORP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Thousands)
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
March 31, March 31,
1999 1998 1999 1998
<S> <C> <C> <C> <C>
Cash flows from operating activities
Net cash provided by operating activities $ 63 $ 441 $ 43 $ 576
--------- --------- --------- --------
Cash flows from investing activities
Principal received on mortgage-backed securities 1,324 403 2,140 1,131
Proceeds from the maturity of investment securities 4,500 1,000 6,500 1,500
Proceeds from sale of investment securities available-
for-sale - 1,025 - 1,025
Purchase of investment securities (4,939) (3,010) (6,936) (4,134)
Purchase of mortgage-backed securities (1,530) - (2,022) (502)
Net increase in loans receivable (365) (666) (318) (1,212)
Other (4) (12) (4) (17)
--------- --------- --------- --------
Net cash used in investing activities (1,014) (1,260) (640) (2,209)
--------- --------- --------- --------
Cash flows from financing activities
Net increase (decrease) in deposits 1,388 (874) 3,467 (1,022)
Proceeds from FHLB advances - 1,500 - 1,500
Other 223 171 421 347
--------- --------- --------- --------
Net cash provided by financing activities 1,611 797 3,888 825
--------- --------- --------- --------
Net increase (decrease) in cash and cash
equivalents 660 (22) 3,291 (808)
Cash and cash equivalents at beginning
of period 6,578 4,182 3,947 4,968
--------- --------- --------- --------
Cash and cash equivalents at end of
period $ 7,238 $ 4,160 $ 7,238 $ 4,160
========= ========= ========= =========
Supplemental disclosures of cash flow information
Cash paid during the periods for:
Interest on deposits and borrowed funds $ 1,005 $ 966 $ 2,027 $ 1,962
========= ========= ========= ========
Income taxes, net of refunds $ 134 $ 89 $ 328 $ 89
========= ========= ========= ========
Supplemental disclosures of noncash
investing activities
Transfers from loans to real estate acquired
through foreclosure $ 34 $ - $ 91 $ 241
========= ========= ========= ========
</TABLE>
See accompanying notes to condensed consolidated financial statements.
4
<PAGE>
PROGRESSIVE BANCORP, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
NOTE 1 - BASIS OF PRESENTATION
The Company's unaudited consolidated financial statements were prepared in
accordance with the 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. In the opinion of management of the Company,
however, the consolidated financial statements reflect all adjustments
(consisting of only normal recurring accruals) which are necessary to present
fairly the consolidated financial position and the consolidated results of
operations of the Company. The consolidated results of operations for the six
month periods ended March 31, 1999 and 1998 are not necessarily indicative of
the results which may be expected for an entire year.
NOTE 2 - EARNINGS PER COMMON SHARE
Basic earnings per share is computed based upon the weighted average number of
common shares outstanding during the period. Diluted income per share is
computed based upon the weighted average number of shares outstanding during the
period plus the shares that would be outstanding assuming the exercise of the
dilutive stock options.
NOTE 3 - YEAR 2000 COMPLIANCE
The Company presently believes that with modifications to existing software and
conversion to new software, the year 2000 issue will not pose significant
operational problems for the Company's business operations. To date, management
believes the systems conversion finalized in November 1998 brought its major
operating system into year 2000 compliance status. In addition, the Company
outsources its computer systems to a third party supplier, who has informed the
Company that it expects to be year 2000 compliant in mid-1999. Implementation of
the Company's plan to test in-house and out-sourced software has been underway
since the first quarter of 1998. Total compliance for all systems, including the
Company's outsourced computer systems, is expected by management to be completed
by the third quarter of 1999; management currently estimates that such
compliance will cost $50,000. The plan implementation team is responsible for
progress and will continue to provide a status report to the board of directors
on a monthly basis through December 31, 1999. However, if such modifications and
conversions are not made, or are not completed timely, the year 2000 issue could
have a material adverse impact on the operations of the Company. The Company has
in place a contingency plan in the event its outsourced computer systems are not
year 2000 compliant on a timely basis. In addition, there can be no assurance
that unforeseen problems in the Company's outsourced computer systems will not
have an adverse effect on the Company's systems or operations. The Company does
not have sufficient information accumulated from customers to enable the Company
to assess the degree to which customers' operations are susceptible to potential
problems relating to the year 2000 issue.
5
<PAGE>
PROGRESSIVE BANCORP, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
NOTE 4 - COMPREHENSIVE INCOME
Effective October 1, 1998, the Company adopted SFAS No. 130, Reporting
Comprehensive Income. Statement 130 establishes new rules for the reporting and
display of comprehensive income and its components. The adoption of this
Statement had no impact on the Company's net income or shareholders' equity.
Statement 130 requires the Company's net change in unrealized gain (loss) on
available-for-sale securities, which prior to adoption were reported separately
in shareholders' equity, to be included in other comprehensive income. Total
comprehensive income, which was comprised of net income and net change in
unrealized gain (loss) on available-for-sale securities, was approximately
$55,000 and $213,000 for the three months ended March 31, 1999 and 1998,
respectively, and $38,000 and $388,000 for the six months ended March 31, 1999
and 1998, respectively.
6
<PAGE>
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations
FINANCIAL CONDITION
Total assets increased $4.0 million or 4.5 percent from September 30, 1998 to
March 31, 1999. Interest-bearing deposits increased $3.4 million or 145.5
percent from September 30, 1998 to March 31, 1999. Money market investments and
investment securities increased $318,000 or 2.9 percent from September 30, 1998
to March 31, 1999. Loans receivable, net, increased $218,000 or 0.4 percent for
this period. Deposits increased $3.5 million or 5.0 percent from September 30,
1998 to March 31, 1999. The Company, faced with a flat yield curve and
uncertainty in the direction of interest rates, chose a conservative approach
and left most of the Company's deposit increase in liquid interest-bearing
deposits.
CAPITAL
Total equity decreased $38,000 or 0.6 percent to $6.7 million during the six
months ended March 31, 1999. The FDIC requires that the Company meet minimum
amounts and ratios of total and Tier I Capital (as defined in the regulations)
to risk-weighted assets (as defined), and Tier I Capital (as defined) to average
assets (as defined). As of March 31, 1999, the Company had total capital of $7.0
million or 16.02 percent of risk-weighted assets, Tier I Capital of $6.9 million
or 15.40 percent of risk-weighted assets, and Tier I Capital of $6.9 million or
7.85 percent of average assets. As of March 31, 1999, the Company was in full
compliance with all three minimum capital requirements.
LIQUIDITY
FDIC regulations require that savings banks maintain an average daily balance of
liquid assets (cash, certain time deposits, bankers' acceptances, and specified
United States Government, state, or federal agency obligations) equal to a
monthly average of not less than 5 percent of its net withdrawable deposits plus
short-term borrowing. At March 31, 1999, the Company's average liquidity
position was $15.7 million or 20.24 percent compared to $12.5 million or 16.6
percent at September 30, 1998. The Company adjusts its liquidity levels in order
to meet funding needs for deposit outflows, payment of real estate taxes
escrowed on mortgage loans, repayment of borrowings, when applicable, and loan
commitments. The Company also adjusts liquidity as appropriate to meet its
asset, liability, and management objectives.
7
<PAGE>
RESULTS OF OPERATIONS
INTEREST INCOME
Interest income increased 1.8 percent or $28,000 for the three months ended
March 31, 1999, compared to the three months ended March 31, 1998. Interest
income increased by 0.7 percent or $21,000 for the six months ended March 31,
1999, compared to the six months ended March 31, 1998. The increase in interest
income for the three months ended March 31, 1999 reflected an increase in
average interest-earning assets to $86.2 million from $83.2 million for a 3.6
percent increase of $3.0 million for the three months ended March 31, 1999,
compared to the three months ended March 31, 1998. Average interest-earning
assets of $85.3 million for the six months ended March 31, 1999 increased $3.1
million or 3.8 percent compared to the average interest-earning assets of $82.2
million for the six months ended March 31, 1998. The increase in interest income
for the three months ended March 31, 1999, compared to the same period in 1998,
was partially offset by a decrease in the average yield on interest-earning
assets to 7.56 percent from 7.90 percent for these respective periods. The
average yield on interest-earning assets for the six months ended March 31, 1999
was 7.57 percent, compared to 7.85 percent for the six months ended March 31,
1998.
INTEREST EXPENSE
Interest expense increased 3.2 percent or $31,000 for the three months ended
March 31, 1999, compared to the three months ended March 31, 1998. Interest
expense also increased 2.9 percent or $58,000 for the six months ended March 31,
1999, compared to the six months ended March 31, 1998.
The increase for the three months ended March 31, 1999, compared to the three
months ended March 31, 1998 was due to an increase in average deposits of $4.3
million from $68.2 million to $72.5 million. The average borrowed funds remained
at $9.5 million for the respective three month periods ended March 31, 1999 and
1998. The increase for the six month period ended March 31, 1999, compared to
the six month period ended March 31, 1998, was due to an increase in average
deposits of $3.1 million from $68.5 million to $71.6 million. Average borrowed
funds remained unchanged at $9.5 million for the six month periods ended March
31, 1999 and 1998. Helping to offset this increase, the average cost of the
deposits and borrowed funds decreased to 4.89 percent from 5.06 percent for the
three months ended March 31, 1999, compared to the three months ended March 31,
1998. The average cost of deposits and borrowed funds for the six months ended
March 31, 1999 was 5.00 percent, compared to the 5.12 percent for the six months
ended March 31, 1998.
8
<PAGE>
NET INTEREST INCOME
Net interest income decreased 0.5 percent or $3,000 and 3.3 percent or $37,000
for the respective three and six month periods ended March 31, 1999, as compared
to these same periods ended March 31, 1998. Contributing to the decrease in net
interest income for both the three and six month periods ended March 31, 1999
was the decrease in loan originations of first mortgage and other loans. Also,
first mortgage refinances increased with these refinanced loans carrying lower
interest rates than the original loans. Adding continued pressure on net
interest income, the Company continued to offer competitive interest rates on
savings deposits in order to compete with other local credit unions, mutual fund
offerings, and other investment sources. To help offset some of this pressure,
the Company offered selected specific term certificates at slightly higher rates
to avoid offering the higher rates to all savings deposit products. Because of
the above mentioned factors, the Company's net interest spread declined to 2.67
percent from 2.84 percent for the three months ended March 31, 1999, compared to
the same period ended March 31, 1998. For the respective six month periods ended
March 31, 1999 and March 31, 1998, the net interest spread decreased to 2.57
percent from 2.73 percent.
PROVISION FOR LOAN LOSSES
The provision for loan losses was $5,000 and $9,000 for the three and six month
periods ended March 31, 1999, respectively, compared to $3,000 and $6,000 for
the same periods ended March 31, 1998, respectively. The Company increased its
loss provisions in both periods to offset specific consumer loan charge offs.
The Company's overall delinquency rate remains low; however, continued
monitoring of the Company's loan portfolio for potential loan problems is a
priority.
NONINTEREST INCOME
Noninterest income decreased by 21.4 percent or $274,000 for the three months
ended March 31, 1999 and decreased 14.1 percent or $294,000 for the six months
ended March 31, 1999, as compared to the three and six months ended March 31,
1998. Travel agency fees from the Company's wholly owned subsidiary decreased
$187,000 or 17.3 percent for the three months ended March 31, 1999, compared to
the three months ended March 31, 1998. A decrease in these agency fees of
$193,000 or 10.9 percent was experienced for the six months ended March 31,
1999, compared to the six months ended March 31, 1998. Also contributing to the
decrease, there were no realized gains on the Company's securities
available-for-sale portfolio for the three and six month periods ended March 31,
1999, compared to the net realized gains of $32,000 for both the three month and
six month periods ended March 31, 1998. The same held for net gain on sales of
loans held-for-sale as no gains were realized for either the three and six month
periods ended March 31, 1999. For the respective three and six month periods
ended March 31, 1998, net gain on sales of loans held-for-sale were $38,000 and
$59,000, respectively.
9
<PAGE>
NONINTEREST EXPENSE
Noninterest expense decreased 4.9 percent or $73,000 for the three months ended
March 31, 1999, compared to the three months ended March 31, 1998. For the six
months ended March 31, 1999, compared to the same period ended March 31, 1998,
noninterest expense increased $27,000. Travel agency cost of sales decreased,
along with the decrease in travel agency fees, $176,000 or 17.2 percent for the
three months ended March 31, 1999, compared to the same period ended March 31,
1998. The travel agency cost of sales decreased $180,000 or 10.7 percent for the
six months ended March 31, 1999, compared to the six months ended March 31,
1998. Compensation and benefits costs increased $51,000 or 22.5 percent for the
three months ended March 31, 1999, compared to the three months ended March 31,
1998. These same costs increased $61,000 or 13.1 percent for the six months
ended March 31, 1999, compared to the six months ended March 31, 1998. Benefit
costs accounted for the majority of these increases. For the three months ended
March 31, 1999, benefit costs increased $38,000 or 97.4 percent, compared to the
three months ended March 31, 1998. Benefit costs increased $39,000 or 45.9
percent for the six months ended March 31, 1999, compared to the six months
ended March 31, 1998. Other operating expenses increased $52,000 or 22.3 percent
for the three months ended March 31, 1999, compared to the three months ended
March 31, 1998. Other operating expenses increased $146,000 or 32.7 percent for
the six months ended March 31, 1999, compared to the six months ended March 31,
1998. Costs related to the Company's recent on-line conversion totaling $107,000
accounted for the majority of this increase over the six month period.
NET INCOME
Net income decreased 51.9 percent or $121,000 for the three months ended March
31, 1999, compared to the three months ended March 31, 1998. Net income
decreased 65.0 percent or $254,000 for the six months ended March 31, 1999,
compared to the six months ended March 31, 1998. The decrease in the three month
period was due primarily to decreases in noninterest income, specifically in net
gain on sales of securities available-for-sale and net gain on sales of loans
held-for-sale totaling $70,000 for the three months ended March 31, 1999,
compared to the same period ended March 31, 1998. Decreases in net gain on sales
of securities available-for-sale and net gain on sales of loans held-for-sale
totaling $91,000 and increases in other noninterest expense of $146,000,
specifically $107,000 costs for the Company's new on-line conversion system,
accounted for the majority of the decrease in net income for the six months
ended March 31, 1999, compared to the same period ended March 31, 1998. Also
contributing to the six month decrease was the expensing of unamortized
organizational costs associated with the formation of the Company as a bank
holding company in October 1997. This amounted to $33,000, net of income taxes.
10
<PAGE>
PROGRESSIVE BANCORP, INC. AND SUBSIDIARIES
PART II. OTHER INFORMATION
Item 1. Legal Proceeding
There are no material legal proceedings to which the Company or the Bank
is a party or of which any of their property is subject. From time to
time, the Bank is a party to various legal proceedings incident to its
business.
Item 2. Changes in Securities
None.
Item 3. Defaults upon Senior Securities
Not applicable.
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) Exhibits: none
(b) Reports on Form 8-K: none
11
<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.
PROGRESSIVE BANCORP, INC.
(Registrant)
DATE: May 17, 1999 BY: /s/ Arthur E. Krile, Jr.
---------------------------------------
Arthur E. Krile, Jr., President and
Chief Executive Officer
12
<TABLE> <S> <C>
<ARTICLE> 9
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-mos
<FISCAL-YEAR-END> Sep-30-1999
<PERIOD-END> Mar-31-1999
<CASH> 1,572
<INT-BEARING-DEPOSITS> 5,666
<FED-FUNDS-SOLD> 0
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 15,674
<INVESTMENTS-CARRYING> 3,252
<INVESTMENTS-MARKET> 3,314
<LOANS> 62,453
<ALLOWANCE> 236
<TOTAL-ASSETS> 91,211
<DEPOSITS> 73,258
<SHORT-TERM> 0
<LIABILITIES-OTHER> 1,762
<LONG-TERM> 9,500
0
0
<COMMON> 2
<OTHER-SE> 6,689
<TOTAL-LIABILITIES-AND-EQUITY> 91,211
<INTEREST-LOAN> 2,454
<INTEREST-INVEST> 563
<INTEREST-OTHER> 110
<INTEREST-TOTAL> 3,127
<INTEREST-DEPOSIT> 1,757
<INTEREST-EXPENSE> 2,026
<INTEREST-INCOME-NET> 1,101
<LOAN-LOSSES> 9
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 2,626
<INCOME-PRETAX> 264
<INCOME-PRE-EXTRAORDINARY> 170
<EXTRAORDINARY> 0
<CHANGES> 33
<NET-INCOME> 137
<EPS-PRIMARY> 0.92
<EPS-DILUTED> 0.89
<YIELD-ACTUAL> 258
<LOANS-NON> 0
<LOANS-PAST> 280
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 601
<ALLOWANCE-OPEN> 228
<CHARGE-OFFS> 0
<RECOVERIES> 1
<ALLOWANCE-CLOSE> 236
<ALLOWANCE-DOMESTIC> 236
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
