UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
------------------------
FORM 10-QSB
QUARTERLY REPORT UNDER SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
------------------------
Homestead Bancorp, Inc.
-----------------------
(Exact Name of Registrant as specified in its charter)
(504) 386-3379
Louisiana 72-1416514
----------- ---------------
(State of incorporation or organization) (IRS Employer Identification No.)
195 North Sixth Street
Ponchatoula, Louisiana 70454
------------------------ --------------------
(Address of principal executive office) (including zip code)
Securities to be registered pursuant to Section 12(b) of the Act:
NONE
Securities to be registered pursuant to Section 12(g) of the Act:
Common Stock, par value $.01 per share
--------------------------------------
(Title of Class)
<PAGE>
INDEX
------
PART I - FINANCIAL INFORMATION
Consolidated Financial Statements:
Page
Consolidated Statements of Financial Condition -
March 31, 2000 and December 31, 1999 1 - 2
Consolidated Statements of Income -
for the three month period ended
March 31, 2000 and 1999 3
Consolidated Statements of Stockholders' Equity
for the three months ended March 31, 2000
and 1999 4
Consolidated Statements of Cash Flows -
for the three months ended March 31, 2000
and 1999 5 - 6
Notes to Consolidated Financial Statements 7 - 8
Management's Discussion and Analysis of Financial
Condition and Results of Operations 9 - 14
Part II - OTHER INFORMATION
Legal Proceedings 15
Changes in Securities 15
Defaults Upon Senior Securities 15
Submission of Matters to a Vote of Security
Holders 15
Other Information 15
Exhibits and Reports on Form 8-K 15
Signatures 16
<PAGE>
<TABLE>
Homestead Bancorp, Inc. and Subsidiary
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
As of March 31, 2000 and December 31, 1999
ASSETS
--------
<CAPTION>
(UNAUDITED) (AUDITED)
March 31, December 31,
2000 1999
(In Thousands)
<S> <C> <C>
Cash and Cash Equivalents $ 392 $ 633
Interest-bearing Deposits in Other Institutions 2,578 256
Securities:
Investment Securities Available
for Sale (Amortized Cost of
$2.5 million and $2.2 million) 2,469 2,180
Mortgage-Backed Securities
Available for Sale (Amortized
Cost of $23.8 million and $24.1 million) 23,607 23,871
FPB Financial Corp. Stock 105 103
Federal Home Loan Bank Stock, at Cost 2,771 2,649
---------- ----------
Total Securities 28,952 28,803
Loans Held for Sale -- 133
Loans Receivable 75,157 71,594
Leases Receivable 204 208
---------- ----------
Total Loans and Leases Receivable 75,361 71,802
Less: Allowance for Loan and Lease Losses (297) (295)
---------- ----------
Net Loans and Leases Receivable 75,064 71,507
Real Estate Owned 15 --
Premises and Equipment, Net 784 517
Accrued Interest Receivable 576 567
Other Assets 71 34
---------- ----------
Total Assets $ 108,432 $ 102,450
========= ==========
</TABLE>
<PAGE>
<TABLE>
LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------
<CAPTION>
(UNAUDITED) (AUDITED)
March 31, December 31,
1999 1999
----- -----
(In Thousands)
<S> <C> <C>
Deposits $ 40,430 $ 38,039
Advances from Borrowers for Taxes and
Insurance 58 61
Advances from Federal Home
Loan Bank 54,454 51,097
Income Taxes Payable 202 145
Other Liabilities 218 77
----------- ------------
Total Liabilities 95,362 89,419
Stockholders' Equity as Restated:
Common Stock - $.01 Par Value;
10,000,000 Shares Authorized, 1,477,870
Shares Issued and Outstanding in 2000
1,477,870 in 1999 15 15
Paid-in Capital in Excess of Par 12,921 12,929
Retained Earnings - Substantially Restricted 4,256 4,175
Accumulated Other Comprehensive Income (166) (156)
----------- ------------
17,026 16,963
Treasury Stock - 347,544 shares at cost in
2000 and 321,183 shares at cost in 1999 (2,841) (2,795)
Unearned ESOP Shares (739) (761)
Common Stock Acquired by Recognition Plans (376) (376)
----------- ------------
Total Stockholders' Equity 13,070 13,031
----------- ------------
Total Liabilities and Stockholders'
Equity $ 108,432 $ 102,450
=========== ====================
</TABLE>
<PAGE>
<TABLE>
Homestead Bancorp, Inc. and Subsidiary
CONSOLIDATED STATEMENTS OF INCOME
----------------------------------
for the three months ended March 31, 2000 and 1999
<CAPTION>
(Unaudited)
Three Months Ended
March 31,
2000 1999
(In Thousands)
<S> <C> <C>
Interest Income:
Loans and Leases $ 1,425 $ 1,074
Mortgage-Backed Securities 370 378
Investment Securities 81 65
Other 31 65
-------- --------
Total Interest Income 1,907 1,582
Interest Expense:
Deposits 450 426
Borrowings 759 507
-------- --------
Total Interest Expense 1,209 933
-------- --------
Net Interest Income 698 649
Provision for (Recovery of) Loan and Lease
Losses 5 0
-------- --------
Net Interest Income After Provision for
(Recovery of) Loan and Lease Losses 693 649
-------- --------
Noninterest Income:
Gain on Sale of Loans 5 6
Loan Fees and Service Charges 62 80
Other Income 3 2
-------- --------
Total Noninterest Income 70 88
Noninterest Expense:
Compensation and Benefits 276 250
Occupancy and Equipment Expense 41 64
Federal Insurance Premium 2 7
Net Real Estate Owned Expense 3 0
Loss on Sale of Securities 0 8
Other 212 205
-------- --------
Total Noninterest Expense 534 534
-------- --------
Income Before Provision for Income
Taxes 229 203
Income Taxes 85 70
-------- --------
Net Income $ 144 $ 133
Per Share:
Earnings Per Common Share 0.13 0.09
======== ========
Earnings Per Common Share - Assuming 0.12 0.09
Dilution ======== ========
Cash Dividends Declared 0.06 0.05
======== ========
</TABLE>
<PAGE>
<TABLE>
Homestead Bancorp, Inc. and Subsidiary
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
------------------------------------------------
for the Three Months Ended March 31, 2000 and 1999
<CAPTION>
(UNAUDITED) (UNAUDITED)
March 31, March 31,
2000 1999
(In Thousands)
<S> <C> <C>
Common Stock:
Balance - Beginning of Period $ 15 $ 15
----------- ----------
Balance - End of Period $ 15 $ 15
=========== ==========
Paid-in Capital in Excess of Par:
Balance - Beginning of Period $ 12,929 $ 12,942
ESOP Compensation Expense (8) --
----------- ----------
Balance - End of Period $ 12,921 $ 12,942
=========== ==========
Retained Earnings:
Balance - Beginning of Period $ 4,175 $ 3,875
Net Income 144 133
Cash Dividends Declared and Paid (68) (75)
Dividends on ESOP Shares 5
----------- ----------
Balance - End of Period $ 4,256 $ 3,933
=========== ==========
Treasury Stock
Balance - Beginning of Period $ (2,795) $ --
Repurchase of Stock (46) (1,272)
----------- ----------
Balance - End of Period $ (2,841) $ (1,272)
=========== ==========
Accumulated Other Comprehensive Income:
Balance - Beginning of Period $ (156) $ (6)
Net Change in Unrealized Gain (Loss) (10) (13)
----------- ----------
Balance - End of Period $ (166) $ (19)
=========== ==========
Unearned Employee Stock Ownership
Plan Shares:
Balance - Beginning of Period $ (761) $ (851)
Shares Released for Allocation 22 23
----------- ----------
Balance - End of Period $ (739) $ (828)
=========== ==========
Director & Management Recognition Plans:
Balance - Beginning of Period $ (376) (33)
----------- ----------
Balance - End of Period $ (376) $ (33)
=========== ==========
Comprehensive Income:
Net Income $ 144 $ 133
Other Comprehensive Income, Net of Tax:
Reclassification Adjustments -- 8
Unrealizied Gains (Losses) on Securities
Available for Sale (166) (13)
----------- ----------
Total Comprehensive Income $ (22) $ 128
=========== ==========
</TABLE>
<PAGE>
<TABLE>
Homestead Bancorp, Inc. and Subsidiary
CONSOLIDATED STATEMENTS OF CASH FLOWS
--------------------------------------
for the three months ended March 31, 2000 and 1999
<CAPTION>
(UNAUDITED)
March 31,
-------------------------
2000 1999
---------- ---------
<S> <C> <C>
Cash Flows From Operating Activities:
Net Income $ 144 $ 133
Adjustments to Reconcile Net Income
to Net Cash Provided by (Used in) Operating
Activities:
Depreciation 11 10
Provision for (Recovery of)
Loan and Lease Losses 5 0
Net Amortization of Premiums on Securities 10 41
Realized Loss on Sale of Securities -- 8
Stock Dividends on Federal Home
Loan Bank Stock (41) (26)
Net (Increase) Decrease in Loans
Held for Sale 133 (207)
Change in Assets and Liabilities
(Increase) Decrease in Accrued
Interest Receivable (9) (19)
(Increase) Decrease in Other
Assets (37) 5
Increase (Decrease) in Income
Taxes Payable 57 13
Increase (Decrease) in Other
Liabilities 141 29
--------- ----------
Net Cash Provided by (Used in) Operating Activities 414 (13)
Cash Flows From Investing Activities:
Purchases of Property and Equipment (278) --
Purchases of Real Estate Owned (18) --
Maturities of Investment Securities 300 400
Purchases of Investment Securities (591) (700)
Maturities of Mortgage-Backed Securities 817 2,023
Purchases of Mortgage-Backed
Securities (577) (946)
Proceeds from Sale of securities available for sale -- 955
Net (Increase) Decrease in Loans and Leases
Receivable (3,496) (6,321)
--------- ----------
Net Cash Provided by (Used in) Investing Activities (3,843) (4,589)
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
(UNAUDITED)
March 31,
-------------------------------
2000 1999
------------- ---------------
<S> <C> <C>
Cash Flows From Financing Activities:
Acquisition of Treasury Stock (46) (1,272)
Net Increase (Decrease) in Money Market Accounts,
NOW Accounts and Savings Accounts (404) 569
Net Increase (Decrease) in Certificates
of Deposit 2,795 112
Proceeds from (Repayment of) Federal Home
Loan Bank Advances 3,357 6,524
Increase (Decrease) in Advances from
Borrowers for Taxes and Insurance (3) (3)
Dividends Paid on Common Stock (68) (75)
Purchase of Federal Home Loan Bank Stock (122) (383)
------------ -------------
Net Cash Provided by (Used In)
Financing Activities 5,509 5,472
------------ -------------
Net Increase (Decrease) in Cash and
Cash Equivalents 2,081 870
Cash and Cash Equivalents -
Beginning of Period 889 3,703
------------ -------------
Cash and Cash Equivalents -
End of Period $ 2,970 $ 4,573
============ ============
Supplemental Disclosures of Cash flow
Information:
Cash Payments for:
Interest Paid to Depositors $ 450 $ 426
============ ============
Interest Paid on Borrowings $ 759 $ 507
============ ============
Income Taxes $ 28 $ 63
============ ============
Supplemental Schedules of Noncash
Investing and Financing Activities:
Real Estate Acquired in Settle-
ment of Loans and Leases $ 15 $ --
============ =============
Increase (Decrease) in Unrealized Gain (Loss)
on Securities Available for Sale $ (16) $ (13)
============= =============
(Increase) Decrease in Deferred Tax
Effect on Unrealized Gain (Loss) on Securities
Available for Sale $ (5) $ (4)
============= =============
</TABLE>
<PAGE>
Homestead Bancorp, Inc. and Subsidiary
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
March 31, 2000
Note 1 - Basis of Presentation -
The accompanying consolidated financial statements for the
period ended March 31, 2000 include the accounts of Homestead
Bancorp, Inc. (the "Company") and its wholly owned subsidiary,
Homestead Bank (the "Bank"). Ponchatoula Homestead Savings, F.A.
changed it's name to Homestead Bank on July 1, 1999. Currently,
the business and management of Homestead Bancorp, Inc. is
primarily the business and management of the Bank. All
significant intercompany transactions and balances have been
eliminated in the consolidation.
The accompanying unaudited financial statements were
prepared in accordance with instructions for Form 10-QSB and,
therefore, do not include information or footnotes necessary for
complete presentation of financial position, results of
operations and cash flows in conformity with generally accepted
accounting principles. However, all adjustments (consisting only
of normal recurring accruals) which, in the opinion of
management, are necessary for a fair presentation of the
financial statements have been included.
Comprehensive Income
--------------------
Components of Comprehensive Income are revenues, expenses,
gains, and losses that under GAAP are included in comprehensive
income but excluded from net income. The components of
comprehensive income are disclosed in the Statement of Changes in
Stockholders' Equity for all periods presented.
Note 2 - Employee Stock Ownership Plan -
The Company sponsors a leveraged employee stock ownership
plan (ESOP) that covers all employees who have at least six
months of service with the Company, and obtained age 20. The
ESOP shares initially were pledged as collateral for its debt.
The debt is being repaid based on a ten-year amortization and the
shares are being released for allocation to active employees
annually over the ten-year period. The shares pledged as
collateral are deducted from stockholder's equity as unearned
ESOP shares in the accompanying balance sheets. ESOP
compensation expense was $14,800 for the three months ended March
31, 2000 based on the annual release of shares.
<PAGE>
Note 3 - Dividends and Earnings Per Share -
The Company declared a quarterly dividend of $.06 for the
first quarter of 2000. Total dividends paid to stockholders in
the first three months of 2000 was $68,000.
Basic earnings per share is computed by dividing net income
by the weighted average number of shares of common stock
outstanding, which is 1,086,484 for the three month period ended
March 31, 2000. Earnings per common share - assuming dilution,
are computed by dividing net income by the weighted average
number of shares of common stock outstanding plus the effect of
diluted securities, which was 1,219,438 for the three month
period ended March 31, 2000.
<PAGE>
Homestead Bancorp, Inc. and Subsidiary
Managements Discussion and Analysis
-----------------------------------
of Financial Condition and Results of Operations
------------------------------------------------
March 31, 2000
General
-------
The following discussion compares the consolidated financial
condition of Homestead Bancorp, Inc. (the "Company") and
Subsidiary, Homestead Bank (the "Bank")(formly Ponchatoula
Homestead Savings, F.A.), at March 31, 2000 to December 31, 1999
and the results of operations for the three month period ended
March 31, 2000 with the same period in 1999. Currently, the
business and management of Homestead Bancorp, Inc. is primarily
the business and management of the Bank. This discussion should
be read in conjunction with the interim consolidated financial
statements and footnotes included herein.
The Company and Bank's results of operations depends
primarily on its net interest income, which is the difference
between interest income on interest-earning assets and interest
expense on interest bearing liabilities. The Company's principle
interest-earning assets are loans and leases, mortgage-backed
securities and investment securities. The Company's results of
operations also are affected by the provision for losses on loans
and leases; the level of its other income, including loan fees
and service charges, federal insurance premiums, net real estate
owned expense and miscellaneous other expenses; as well as its
income tax expense.
Changes in Financial Condition
-------------------------------
At March 31, 2000, the Company's total assets, deposits and
equity amounted to $108.4 million, $40.4 million, and $13.1
million respectively compared to $102.5 million, $38 million, and
$13 million respectively at December 31, 1999. The increase in
total assets of $5.9 million or 5.8% was due primarily to an
increase of $3.6 million in the net loan and lease portfolio.
The increase of 5% in net loan and lease portfolio was due to new
loan originations exceeding new loan sales and repayment,
combined with the Company retaining a greater number of fixed
rate loans in its loan portfolio. Interest-bearing deposits in
other institutions increased $2.3 million during the first three
months to $2.6 million. The increase in interest-bearing deposit
was due primarily to an increase in deposits combined with an
increase in Federal Home Loan Bank Advances. Investments in
Mortgage-Backed securities decreased in the first three months of
2000 by $264,000 or 1.1%, due to repayment of Mortgage-Backed
securities exceeding new purchases. Investment in Federal Home
Loan Bank stock increased in the first three months of 2000 by
$122,000 or 4.6%, due to the purchase of additional Federal Home
Loan Bank stock to facilitate the long term borrowing from
Federal Home Loan Bank.
<PAGE>
The Company's short term borrowing from the Federal Home
Loan Bank increased during the first three months of 2000 by $3.8
million or 17%. The Bank uses the proceeds from short term
borrowing to finance the purchase of mortgage-backed securities
and fund long term fixed rate mortgages. The Company's long term
borrowing from the Federal Home Loan Bank decreased during the
first three months of 2000 by $443,000. Homestead uses the
proceeds from long term borrowing to fund long term fixed rate
mortgages. Deposits with the Bank have increased by $2.4
million or 6.3% in the first three months of 2000. The equity of
the Company increased $39,000 or .3% in the first three months of
2000, due primarily to net income of $144,000 offset by the
repurchase of the Company's common stock in the stock repurchase
plan of $46,000 and dividends paid out of $68,000. At March 31,
2000 the Company had repurchased $2.8 million of it's common
stock. This amount appears in the equity section of the
Statement of Financial Condition as Treasury Stock.
Capital
-------
The Bank is subject to various regulatory capital
requirements administered by the federal banking agencies.
Failure to meet minimum capital requirements can initiate certain
mandatory---and possible additional discretionary---actions by
regulators that, if undertaken, could have a direct material
effect on the Bank's financial statements. Under capital
adequacy guidelines and the regulatory framework for prompt
corrective action, the Bank must meet specific capital guidelines
that involve quantitative measures of the Bank's assets,
liabilities, and certain off-balance sheet items as calculated
under regulatory accounting practices. The Bank's capital
amounts and classification are also subject to qualitative
judgments by the regulators about components, risk weighing, and
other factors.
Quantitative measures established by regulation to ensure
capital adequacy require the Bank to maintain minimum amounts and
ratios (set forth in the table below) of total and Tier 1 capital
(as defined in the regulations) to risk-weighted assets (as
defined), and of Tier 1 capital (as defined) to average assets
(as defined). Management believes, as of March 31, 2000, that
the Bank meets all capital adequacy requirements to which it is
subject.
As of March 31, 2000, the most recent notification
categorized the Bank as well capitalized under the regulatory
framework for prompt corrective action. To be categorized as
well capitalized the Bank must maintain minimum total risk-based,
Tier I risk based, and Tier I leverage ratios as set forth in the
table. There are no conditions or events since that notification
that management believes have changed the institution's category.
<PAGE>
The Bank's actual capital amounts and ratios are also presented
in the table.
<TABLE>
<CAPTION>
To Be Well
Capitalized Under
For Capital Prompt Corrective
Actual Adequacy Purposes: Action Provisions:
-------------------- ------------------- --------------------
Amount Ratio Amount Ratio Amount Ratio
--------- -------- -------- -------- --------- --------
(Dollars in Thousands)
<S> <C> <C> <C> <C> <C> <C>
As of March 31, 2000:
Total Capital (to Risk
Weighted Assets) $ 11,533 23.27% $ 3,965 >/= 8.0% $ 4,956 >/= 10.0%
Tier I Capital (to Risk
Weighted Assets) $ 11,243 22.68% $ 1,983 >/= 4.0% $ 2,974 >/= 6.0%
Tier I Capital (to Average
Assets) $ 11,243 10.39% $ 4,327 >/= 4.0% $ 5,408 >/= 5.0%
</TABLE>
Liquidity
---------
The Bank is required under applicable federal regulations to
maintain specific levels of "liquid" investments in qualifying
types of United States Government, federal agency and other
investments having maturities of five years or less. Current
regulations require that a Savings institution maintain liquid
assets of not less than 5% of its average daily balance of net
withdrawable shares.
Results of Operations
---------------------
Net income for the first three months of 2000 was $144,000
compared to $133,000 for the same period of 1999. The increase
in net income of $11,000 or 8.2%, was primarily due to an
increase in net interest income after provision for (recovery of)
loan and lease losses of $44,000 or 6.7%, offset by a decrease in
non-interest income of $18,000 or 20.7%, with an increase of
$15,000 or 21.42%, in income tax expense. The decrease in non-
interest income is due to a decrease in loan fees and service
charges of $18,000 or 22.5%. Non-interest expense remained the
same for the first three months of 2000 and 1999 at $534,000.
Compensation expense increased by $26,000 or 10.4%, offset by a
decease in occupancy and equipment expense of $23,000 or 35.9%,
for the first three months of 2000.
Net Interest Income
-------------------
The primary source of earnings for the Company is net
interest income; the difference between income generated from
interest-earning assets less interest expense on interest-bearing
<PAGE>
liabilities. The primary factors that affect interest income are
changes in the volume and type of interest-earning assets and
interest-bearing liabilities, along with changes in market rates.
Net interest income for the first three months of 2000 was
$698,000 an increase of $49,000 or 7.6% over the same period of
1999. This increase in net interest income was primarily
attributable to an increase in interest income of $325,000 or
20.5%, offset by an increase in interest expense of $276,000 or
29.6% over the same period of 1999. The increase in interest
income was primarily due to an increase in the volume of the
Company's loan and lease portfolio, combined with an increase in
the volume of investment securities offset by a decrease in the
volume of the Company's mortgage-backed securities. Interest
rate spread is the yield of interest-earning assets minus the
costs of interest-bearing liabilities. The interest rate spread
for the three months ended March 31, 2000 was 2.09% as compared
to 2.13% for the same period in 1999.
The table of Consolidated Average Balance Sheets and
Interest Rate Analysis for the three months ended March 31, 2000
and 1999 on page 13, and the corresponding table of Interest
Differentials on page 14, detail the effect of a change in
average balances and the change in interest yield and interest
cost have on net interest income for the respective periods.
Nonperforming Assets
--------------------
Nonperforming assets include non-accrual loans and leases
and real estate owned. Loans are considered non-accrual when the
principal or interest becomes 90 days past due or when there is
uncertainty about the repayment of the principal and interest in
accordance with the terms of the loans. Non-accrual loans at
March 31, 2000 were $179,000 compared to $337,000 at March 31,
1999. The percentage of non-accrual loans and leases to total
loan and leases at March 31, 2000 is .26% down from .57% at March
31, 1999.
Real estate owned is properties held for sale acquired
through foreclosure or negotiated settlements of debt. At March
31, 2000 the Bank had real estate owned of $15,000 compared to $0
at March 31, 1999. Nonperforming assets at March 31, 2000 were
.18% of total assets compared to .36% at March 31, 1999.
<PAGE>
<TABLE>
Homestead Bancorp, Inc. and Subsidiary
CONSOLIDATED AVERAGE BALANCE SHEETS AND INTEREST RATE ANALYSIS
for the three months ended March 31, 2000 and 1999
<CAPTION>
Three Months Ended Three Months Ended
March 31, 2000 March 31, 1999
AVERAGE YIELD/ AVERAGE YIELD/
BALANCE INTEREST RATE BALANCE INTEREST RATE
----------------------------------------- -------------------------------------
(In Thousands) (In Thousands) (In Thousands) (In Thousands)
<S> <C> <C> <C> <C> <C> <C>
Interest - Earning Assets:
Loans and Leases Receivable $ 73,857 1,425 7.72% $ 56,222 1,074 7.64%
Mortgage - Backed Securities 23,488 370 6.30% 25,966 378 5.83%
Investment Securities 5,171 81 6.26% 4,626 65 5.62%
Other Interest - Earning Assets 2,716 31 4.60% 5,621 65 4.63%
---------- -------- ----- ---------- -------- -----
Total Interest - Earning Assets $ 105,232 1,907 7.25% $ 92,435 1,582 6.85%
Noninterest - Earning Assets 2,102 2,443
---------- ----------
Total Assets $ 107,334 $ 94,878
========== ==========
Interest - Bearing Liabilities:
Deposits $ 40,588 450 4.43% $ 40,323 426 4.23%
Federal Home Loan Bank Advances 53,169 759 5.71% 38,792 507 5.23%
---------- -------- ----- ---------- -------- -----
Total Interest-bearing Liabilities $ 93,757 1,209 5.16% $ 79,115 933 4.72%
Noninterest - Bearing Liabilities 493 465
---------- ----------
Total Liabilities $ 94,250 $ 79,580
========== ==========
Stockholders' Equity $ 13,084 $ 15,298
---------- ----------
Total Liabilities and Stockholders' Equity $ 107,334 $ 94,878
========== ==========
Net Interest Income; Interest Rate Spread $ 698 2.09% $ 649 2.13%
======== ===== ========= =====
Net Interest Margin as a % of Total Earning Assets 2.65% 2.81%
===== =====
</TABLE>
<PAGE>
<TABLE>
Homestead Bancorp, Inc. and Subsidiary
INTEREST DIFFERENTIALS
----------------------
for the three months ended March 31, 2000 and 1999
<CAPTION>
March 31, 2000 VS March 31, 1999
---------------------------------------
CHANGE DUE TO TOTAL
VOLUME RATE CHANGE
---------------------------------------
(In Thousands)
<S> <C> <C> <C>
Interest - Earning Assets:
Loans and Lease Receivable $ 340 $ 11 $ 351
Mortgage-Backed Securities (37) 29 (8)
Investment Securities 8 8 16
Other Interest-Earning assets (33) (1) (34)
Total Interest Income $ 278 $ 47 $ 325
Interest - Bearing Liabilities:
Deposits $ 3 $ 21 $ 24
Federal Home Loan Bank Advances 202 50 252
Total Interest Expense $ 205 $ 71 $ 276
Increase (Decrease) in Interest Differential $ 73 $ (24) $ 49
</TABLE>
<PAGE>
Homestead Bancorp, Inc. and Subsidiary
FORM 10-QSB
------------
Three Months Ended March 31, 2000
PART II - OTHER INFORMATION
Item 1 - Legal Proceedings:
There are no matters required to be reported under this item.
Item 2 - Changes in Securities:
There are no matters required to be reported under this item.
Item 3 - Defaults Upon Senior Securities:
There are no matters required to be reported under this item.
Item 4 - Submission of Matters to a Vote of Security Holders.
There are no matters required to be reported under this item.
Item 5 - Other Information:
There are no matters required to be reported under this item.
Item 6 - Exhibits and Reports on Form 8-K:
a.) Exhibits:
No exhibits were filed on Form 8-K by the Registrant
during the quarter ended March 31, 2000.
b.) Reports:
No reports on Form 8-K were filed by the Registrant
during the quarter ended March 31, 2000.
<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.
Homestead Bancorp, Inc
Date: May 12, 2000 BY /s/ Lawrence C. Caldwell, Jr.
------------------------- -------------------------------------
Lawrence C. Caldwell, Jr.
President and Chief Executive Officer
Date: May 12, 2000 BY /s/ Kelly Morse
------------------------- -------------------------
Kelly Morse
Comptroller
<TABLE> <S> <C>
<ARTICLE> 9
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-2000
<PERIOD-END> MAR-31-2000
<CASH> 392
<INT-BEARING-DEPOSITS> 2,578
<FED-FUNDS-SOLD> 0
<TRADING-ASSETS> 105
<INVESTMENTS-HELD-FOR-SALE> 0
<INVESTMENTS-CARRYING> 26,300
<INVESTMENTS-MARKET> 26,076
<LOANS> 75,361
<ALLOWANCE> 297
<TOTAL-ASSETS> 108,432
<DEPOSITS> 40,430
<SHORT-TERM> 27,910
<LIABILITIES-OTHER> 218
<LONG-TERM> 26,544
0
0
<COMMON> 15
<OTHER-SE> 13,055
<TOTAL-LIABILITIES-AND-EQUITY> 108,432
<INTEREST-LOAN> 1,425
<INTEREST-INVEST> 451
<INTEREST-OTHER> 31
<INTEREST-TOTAL> 1,907
<INTEREST-DEPOSIT> 450
<INTEREST-EXPENSE> 759
<INTEREST-INCOME-NET> 698
<LOAN-LOSSES> 5
<SECURITIES-GAINS> 2
<EXPENSE-OTHER> 212
<INCOME-PRETAX> 229
<INCOME-PRE-EXTRAORDINARY> 229
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 144
<EPS-BASIC> .13
<EPS-DILUTED> .12
<YIELD-ACTUAL> 7.25
<LOANS-NON> 179
<LOANS-PAST> 0
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 297
<CHARGE-OFFS> 0
<RECOVERIES> 0
<ALLOWANCE-CLOSE> 297
<ALLOWANCE-DOMESTIC> 297
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
