U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
__________________________
FORM 10-QSB
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 1998
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from ____________ to _____________.
Commission File Number 0-24935
_______
SERVICE BANCORP, INC.
____________________
(Exact name of Registrant as specified in its Charter)
Massachusetts 04-3430806
________________________________ ______________________________
(State or other jurisdiction of incorporation (I.R.S. Employer Identification
or organization) Number)
81 Main Street, Medway, Massachusetts 02053
_____________________________________ _______
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (508) 533-3100
_______________
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days.
Yes X No
_____ _____
As of September 30, 1998, there were no shares of the Registrant's
common stock, par value $0.01 per share, outstanding.
<PAGE>
Part I.
_______
FINANCIAL INFORMATION
Service Bancorp, Inc. (the "Registrant") was formed to serve as the
stock holding company for Summit Bank (the "Bank") pursuant to the Bank's
two-tier mutual holding company reorganization. As of September 30, 1998, the
Bank had not completed its Reorganization, and, accordingly, the Registrant
had no assets or liabilities. However, attached as Exhibit 99.1 is selected
consolidated financial data for the Bank.
Part II.
________
OTHER INFORMATION
Item 1. Legal Proceedings
_________________
None
Item 2. Changes in Securities
_____________________
None
Item 3. Defaults Upon Senior Securities
_______________________________
None
Item 4. Submission of Matters to a Vote of Security Holders
___________________________________________________
None
Item 5. Other Information
_________________
None
Item 6. Exhibits and Reports on Form 8-K
________________________________
27 Financial Data Schedule
99.1 Selected Financial Data of Summit Bank
No reports on Form 8-K were filed during the quarter ended
September 30, 1998.
<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.
SERVICE BANCORP, INC.
Date: November 9, 1998 \s\ Eugene G. Stone
____________________________________
Eugene G. Stone
(President and Chief Executive
Officer)
Date: November 9, 1998 \s\ Warren W. Chase, Jr.
____________________________________
Warren W. Chase, Jr.
(Vice President and Treasurer)
<PAGE>
EXHIBIT 99.1
<PAGE>
SUMMIT BANK AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
ASSETS
<TABLE>
September 30, June 30,
1998 1998
____________ ________
<S> <C> <C>
Cash and due from banks $ 4,251 $ 4,452
Short-term investments 17,852 11,931
Total cash and cash equivalents 22,103 16,383
Certificates of deposit 1,500 1,500
Securities available for sale 45,357 40,171
Loans 75,039 77,312
Less allowance for loan losses (598) (577)
____________ __________
Loans, net 74,441 76,735
============ ==========
Banking premises and equipment, net 1,498 1,455
Federal Home Loan Bank Stock, at cost 731 731
Accrued interest receivable 1,078 1,173
Other assets 736 804
___________ ____________
Total Assets $ 147,444 $ 138,952
=========== ============
LIABILITIES AND RETAINED EARNINGS
Deposits $ 121,601 $ 112,247
Federal Home Loan Bank advances 14,419 14,562
Due to broker 1,053
Other Liabilities 857 967
__________ ___________
Total Liabilities 136,877 128,829
========== ===========
Retained earnings 9,924 9,700
Net unrealized gain on securities
for sale, net of tax effects 643 423
__________ ___________
Total Retained Earnings 10,567 10,123
__________ ___________
Total Liabilities and Retained Earnings $ 147,444 $ 138,952
========== ===========
</TABLE>
<PAGE>
SUMMIT BANK AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(In thousands)
(Unaudited)
<TABLE>
Three Months Ended
September 30,
1998 1997
________ _______
<S> <C> <C>
Interest and dividend income:
Interest and fees on loans $ 1,637 $ 1,486
Interest and dividends on securities
available for sale and Federal Home
Loan Bank stock 653 435
Interest on short-term investments
and certificates of deposit 143 99
_______ _______
Total interest and dividend income 2,433 2,020
_______ _______
Interest expense:
Interest on deposits 1,015 887
Interest on borrowings 194 41
______ ______
Total interest expense 1,209 928
______ ______
Net interest income 1,224 1,092
Provision for loan losses 25 --
______ ______
Net interest income, after provision
for loan losses 1,199 1,092
______ ______
Other income:
Customer service fees 123 88
Gain on sales of securities available
for sale, net 73 283
Gain on sales of loan 17 12
Miscellaneous 9 13
______ _______
Total other income 222 396
______ _______
Operating expenses:
Salaries and employee benefits 562 436
Occupancy and equipment expenses 242 199
Data processing expenses 76 72
Professional fees 41 18
Advertising expenses 33 22
Other general and administrative expenses 125 85
______ _______
Total operating expenses 1,079 832
______ _______
Income before income taxes 342 656
Provision for income taxes 118 225
______ _______
Net income $ 224 $ 431
====== =======
</TABLE>
<PAGE>
SUMMIT BANK AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands)
CONSOLIDATED STATEMENTS OF CHANGES IN RETAINED EARNINGS
For the three months ended September 30, 1998
(In thousands)
(Unaudited)
<TABLE>
<CAPTION>
Accumulated
Other
Comprehensive Retained Comprehensive
Income Earnings Income Total
___________ ________ ___________ _________
<S> <C> <C> <C> <C>
Balance at June 30, 1998 $ 0 $ 9,700 $ 423 $ 10,123
Comprehensive income:
Net income 224 224 -- 224
Change in net unrealized gain
on securities available for sale,
after tax effects and
reclassification adjustment 220 -- 220 220
___________ _________ ___________ _________
Comprehensive Income $ 444
Balance at September 30, 1998 $ 9,924 $ 643 $ 10,567
========= =========== =========
Balance at June 30, 1997 $ -- $ 8,499 $ 196 $ 8,695
Comprehensive Income:
Net income 431 431 -- 431
Change in net unrealized gain
on securities available for sale,
after tax effects and
reclassification adjustment 62 -- 62 220
___________ _________ ___________ _________
Comprehensive Income $ 493
Balance at September 30, 1998 $ 8,930 $ 258 $ 9,188
========= =========== =========
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 9
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> JUN-30-1999
<PERIOD-END> SEP-30-1998
<CASH> 4,251
<INT-BEARING-DEPOSITS> 1,500
<FED-FUNDS-SOLD> 11,327
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 34,030
<INVESTMENTS-CARRYING> 0
<INVESTMENTS-MARKET> 0
<LOANS> 75,039
<ALLOWANCE> 598
<TOTAL-ASSETS> 147,444
<DEPOSITS> 121,601
<SHORT-TERM> 0
<LIABILITIES-OTHER> 857
<LONG-TERM> 14,419
<COMMON> 0
0
0
<OTHER-SE> 10,567
<TOTAL-LIABILITIES-AND-EQUITY> 147,444
<INTEREST-LOAN> 1,637
<INTEREST-INVEST> 653
<INTEREST-OTHER> 143
<INTEREST-TOTAL> 2,433
<INTEREST-DEPOSIT> 1,015
<INTEREST-EXPENSE> 1,209
<INTEREST-INCOME-NET> 1,224
<LOAN-LOSSES> 25
<SECURITIES-GAINS> 73
<EXPENSE-OTHER> 1,079
<INCOME-PRETAX> 342
<INCOME-PRE-EXTRAORDINARY> 342
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 224
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
<YIELD-ACTUAL> 3.77
<LOANS-NON> 288
<LOANS-PAST> 475
<LOANS-TROUBLED> 22
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 577
<CHARGE-OFFS> 6
<RECOVERIES> 2
<ALLOWANCE-CLOSE> 598
<ALLOWANCE-DOMESTIC> 495
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 103
</TABLE>