U.S. SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-QSB
X Quarterly Report Under Section 13 or 15(d)
of the Securities Exchange Act of 1934 for
the Quarterly Period Ended September 30, 1995,
or
Transition Report Under Section 13 or
15(d) of the Exchange Act for the
Transition Period from _________________
to _________________.
Commission file number 0-14555
FIRST LEESPORT BANCORP, INC.
(Exact name of Small Business Issuer as specified in its charter)
PENNSYLVANIA
(State or other jurisdiction of
incorporation or organization)
23-2354007
(I.R.S. Employer
Identification No.)
133 North Centre Avenue,
Leesport, Pennsylvania 19533
(Address of principal executive offices) (Zip Code)
(610) 926-2161
(Registrant's telephone number, including area code)
Check whether the Issuer (1) filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act during the past 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 [ ]
State the number of shares outstanding of each of the issuer's classes
of common equity, as of the latest practicable date.
Class Outstanding at November 1, 1995
Common Stock ($5.00 par value) 1,191,171 Shares
<PAGE>
<TABLE>
Part I - FINANCIAL INFORMATION
FIRST LEESPORT BANCORP, INC. AND SUBSIDIARY
UNAUDITED CONSOLIDATED CONDENSED BALANCE SHEETS
(Amounts in thousands, except per share data)
<CAPTION>
Sept.30 Dec. 31
ASSETS 1995 1994
<S> <C> <C>
Cash and due from banks and interest-bearing deposits $ 4,600 $ 5,337
Federal Funds sold 0 0
Securities held to maturity
(Fair value - $21,589 and 1994 - $18,432) 21,480 19,246
Securities available for sale 15,313 14,998
Loans, net of unearned discount 106,270 98,187
Less allowance for loan losses (1,157) (1,124)
_______ ______
Net Loans 105,113 97,063
Bank premises and equipment 3,327 3,477
Other Real Estate Owned 168 182
Other assets 1,599 1,564
_______ _______
Total Assets 151,600 141,867
LIABILITIES
Demand deposits $ 15,395 $ 15,772
NOW+ and Money Market accounts 27,299 28,162
Savings deposits 23,309 26,425
Time deposits 66,456 47,054
_______ _______
Total deposits 132,459 117,413
Federal Funds purchased 1,295 5,493
Other borrowed funds 0 2,000
Long term debt 1,000 1,000
Accrued interest payable 664 581
Other liabilities 561 779
_______ _______
Total Liabilities 135,979 127,266
STOCKHOLDERS' EQUITY
Common stock, $5.00 par value per share; authorized 2,000,000
shares, issued 1,200,000 shares. $ 6,000 $ 6,000
Surplus 3,000 3,000
Retained Earnings 6,576 5,980
Unrealized appreciation (depreciation) on securities
available for sale, net of taxes 166 (258)
Treasury Stock, at cost - 8,829 shares (121) (121)
______ ______
Total Stockholders' Equity 15,621 14,601
_______ _______
Total Liabilities and Stockholders' Equity 151,600 141,867
<FN>
The accompanying notes are an integral part of these condensed financial
statements.
</TABLE>
<PAGE>
<TABLE>
FIRST LEESPORT BANCORP, INC. AND SUBSIDIARY
UNAUDITED CONSOLIDATED CONDENSED STATEMENTS OF INCOME
(Amounts in thousands, except per share data)
<CAPTION>
(in thousands) (in thousands)
Three Months Nine Months
Ended Sept.30 Ended Sept.30
1995 1994 1995 1994
<S> <C> <C> <C> <C>
INTEREST INCOME
Interest & Fees on Loans $ 2,356 $ 2,006 $ 6,799 $ 5,923
Interest on Federal
Funds Sold 74 50 124 159
Interest on Securities:
Taxable Securities 353 319 1,008 838
State & Municipal Bonds 165 164 493 478
_____ _____ _____ _____
TOTAL INTEREST INCOME 2,948 2,539 8,424 7,398
INTEREST EXPENSE
Interest on deposits 1,359 954 3,627 2,819
Interest on borrowed funds 40 16 258 40
_____ ___ _____ _____
TOTAL INTEREST EXPENSE 1,399 970 3,885 2,859
_____ _____ _____ _____
NET INTEREST INCOME 1,549 1,569 4,539 4,539
Provision for loan losses 35 24 210 96
Net Interest Income after _____ _____ _____ _____
provision for loan losses 1,514 1,545 4,329 4,443
OTHER INCOME
Service charges on deposits 75 66 208 188
Gains on sales of securities 0 0 1 0
Other operating income 68 40 179 125
___ ___ ___ ___
TOTAL OTHER INCOME 143 106 388 313
OTHER EXPENSES
Salaries, wages, and benefits 485 597 1,613 1,728
Net occupancy expense 108 88 300 228
Furniture and equipment expense 73 58 199 175
Computer processing expense 66 60 197 177
FDIC insurance expense (8) 65 124 189
Other operating expenses 332 282 997 871
_____ _____ _____ _____
TOTAL OTHER EXPENSES 1,056 1,150 3,430 3,368
_____ _____ _____ _____
Income before income taxes 601 501 1,287 1,388
Federal income taxes 161 124 298 330
___ ___ ___ _____
NET INCOME 440 377 989 1,058
PER SHARE DATA
Based on average shares
outstanding 1,191,171 1,191,171 1,191,171 1,191,171
Net Income 0.36 0.32 0.83 0.89
Dividends 0.11 0.11 0.33 0.31
<FN>
The accompanying notes are an integral part of these condensed financial
statements.
</TABLE>
<PAGE>
<TABLE>
FIRST LEESPORT BANCORP, INC. AND SUBSIDIARY
UNAUDITED CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
Amounts in thousands, except per share data)
<CAPTION>
Nine Months Ended
Sept.30
1995 1994
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income $ 989 $ 1,058
Provision for loan losses 210 96
Provision for depreciation and amortization 191 171
Net amortization of security premiums and discounts (49) (55)
Loans originated for sale 9,075 4,038
Proceeds from sales of loans (9,053) (4,012)
(Gain) Loss on sales of loans (22) (26)
(Gain) Loss on sales of securities (1) 0
(Increase) Decrease in accrued interest receivable
and other assets 21 225
Increase (Decrease) in accrued interest payable
and other liabilities 140 (56)
_____ _____
NET CASH PROVIDED BY OPERATING ACTIVITIES 1,479 1,413
CASH FLOWS FROM INVESTING ACTIVITIES
Held-to-maturity securities:
Proceeds from maturities of securities 2,590 4,223
Purchase of securities (4,873) (7,442)
Available-for-sale securities:
Proceeds from maturities of securities 611 1,059
Proceeds from sales of securities 1,175 0
Purchase of securities (2,050) (4,853)
Net (Increase) decrease in federal funds sold 0 5,106
Loans made to customers, net of principal collected (8,083) (5,529)
Purchases of bank premises and equipment (41) (1,110)
_____ _____
NET CASH (USED IN) INVESTING ACTIVITIES (10,671) (8,546)
CASH FLOWS FROM FINANCING ACTIVITIES
Net increase (decrease) in deposits 15,046 4,789
Net increase (decrease) in federal funds purchased (4,198) 0
Net increase (decrease) in other borrowed funds (2,000) 2,000
Proceeds from long-term debt 0 0
Dividends paid (393) (369)
_____ _____
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES 8,455 6,420
_____ _____
Increase (decrease) in cash and cash equivalents (737) (713)
_____ _____
Cash and cash equivalents: Beginning 5,337 4,783
_____ _____
Ending 4,600 4,070
_____ _____
SUPPLEMENTAL DISCLOSURES OF CASH FLOWS:
Interest paid $ 3,544 $ 2,888
Income taxes paid 280 233
<FN>
The accompanying notes are an integral part of these condensed financial
statements.
</TABLE>
<PAGE>
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
(UNAUDITED)
1. The financial information included herein is unaudited, however, such
information reflects all adjustments (consisting solely of normal recurring
adjustments) which are, in the opinion of management, necessary for a fair
statement of the results for the interim periods.
2. The results of operations for the nine-month periods ended September 30,
1995 and 1994 are not necessarily indicative of the results to be expected for
the full year.
3. New accounting standards:
On January 1, 1995, the Bank adopted FASB Statement No. 114, Accounting by
Creditors for Impairment of a Loan. Statement No. 114 has been amended by FASB
Statement No. 118, Accounting by Creditors for Impairment of a Loan - Income
Recognition and Disclosures. Statement 114, as amended, requires that the
impairment of loans that have been separately identified for evaluation is to
be measured based on the present value of expected future cash flows or,
alternatively, the observable market price of the loans or the fair value of
expected future cash flows or, alternatively, the observable market price of
the loans or the fair value of the collateral. However, for those loans that
are collateral dependent (that is, if repayment of those loans is expected to
be provided solely by the underlying collateral) and for which management has
determined foreclosure is probable, the measure of impairment of those loans
is to be based on the fair value of the collateral. Statement 114, as amended,
also requires certain disclosures about investments in impaired loans and the
allowance for loan losses and interest income recognized on those loans. There
was no effect on the allowance for loan losses or the related provision for
loan losses upon the adoption of Statement 114.
<PAGE>
MANAGEMENT DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
Financial Condition
The Company's total assets increased by $9,733,000 from December 31, 1994 to
September 30, 1995, an increase of 6.9%, growing from $141,867,000 to
$151,600,000. The majority of the growth was realized in the loan portfolio
with that segment accounting for over 80% of the total increase. Funding for
this growth came from increased levels of deposits, primarily time deposits.
The loan portfolio, net of the allowance for loan losses, grew by $8,050,000,
or 8.3% from $97,063,000 at December 31, 1994 to $105,113,000 at September 30,
1995. Within this portfolio, net commercial loans increased by $2,749,000, or
9.4% between the two dates while net mortgage loans increased by $5,417,000,
an increase of 10.1%. Net installment loans remained relatively stable,
increasing by only $294,000 during the same period. Other loans, which include
credit cards and pre-approved consumer-type lines of credit, actually
decreased by $377,000 from December 31, 1994 to September 30, 1995. The Bank
has experienced a good deal of activity in the mortgage area with the opening
of a mortgage loan production center in August of 1994, and this activity has
lead to the substantial increase in mortgage loans outstanding.
The Bank also originates mortgages for sale into the secondary market, and at
September 30, 1995 serviced a total of $9,076,000 of mortgages sold into the
secondary market. These types of mortgages totalled only $4,073,000 at
December 31, 1994 and the current balance represents an increase of 122.8%.
These serviced loans are not included in the total loan portfolio amounts
highlighted above as they are sold without recourse.
The allowance for loan losses increased by $33,000 between December 31, 1994
and September 30, 1995, and now amounts to $1,157,000 representing 1.09% of
the loan portfolio. This percentage has decreased from the 1.15% ratio at
December 31, 1994. Management and the Bank's Board of Directors review the
allowance on a quarterly basis, and in conjunction with the Bank's Loan Review
Officer, the Collection Manager, and an analysis of current levels of past due
and non-performing loans, assess the need for additional provisions from
earnings. The level of the allowance at September 30, 1995 was deemed to be
adequate.
Cash and balances due from other banks, including federal funds sold,
decreased by 13.8%, or $737,000, from December 31, 1994 to September 30, 1995.
During the third quarter, excess funds were used to purchase investment
securities to improve the Bank's overall yield on earning assets. Federal
funds sold, although zero at December 31, 1994, had grown in excess of
$5,000,000 during the year. At September 30, 1995, these funds had been
completely invested.
Investment securities in the held-to-maturity category increased by $2,234,000
between December 31, 1994 and September 30, 1995, an increase of 11.6%, and
now total $21,480,000. Callable U.S. Government-sponsored agency securities
were purchased during the third quarter in an effort to improve the overall
yield on the portfolio. Held-to-maturity investments now account for 58.4% of
the Bank's total investment securities portfolio.
Total deposits of the Bank increased by 12.8%, or $15,046,000 from
$117,413,000 at December 31, 1994 to $132,459,000 at September 30, 1995. Time
deposits were the only category to increase as each of the demand deposits,
NOW+ and money markets, and savings-type deposits decreased by a combined
$4,356,000 between the two dates.
<PAGE>
The increase in time deposits of $19,402,000, or 41.2%, can be attributed to
deposit promotions earlier in the year coinciding with a grand opening
celebration at the Rockland Plaza Office and an anniversary celebration at the
Wyomissing Hills Office. Along with these celebrations, special promotional
rates of interest were paid on certificates.
Federal funds purchased, which totalled $5,493,000 at December 31, 1994,
decreased to $1,295,000 at September 30, 1995. The deposit activity noted
above, in conjunction with the investment and loan activity, provided excess
funds which were used to reduce the purchased funds outstanding.
Other borrowed funds, including long-term debt, were reduced by $2,000,000
between December 31, 1994 and September 30, 1995. These funds, borrowed from
the Federal Home Loan Bank of Pittsburgh, carry fixed rates and specific
maturities. The $1,000,000 still outstanding matures in February of 1996.
Stockholders' Equity increased by 7.0%, or $1,020,000 from $14,601,000 at
December 31, 1994 to $15,621,000 at September 30, 1995. Retained net income
contributed $601,000 to this increase, while an improvement in the market
value of investment securities available for sale, net of the tax effect,
contributed $424,000. The Bank's Capital to Assets ratio, or leverage ratio,
decreased from 10.6% at December 31, 1994 to 10.1% at September 30, 1995 as a
result of the asset growth exceeding the capital growth noted above. This
percentage is well in excess of the regulatory minimum of 3.0%.
Results of Operations
Nine Month Periods Ended September 30, 1995 and 1994
Total interest income for the nine months ended September 30, 1995 was
$8,424,000 compared to $7,398,000 for the same period in 1994. Of this
$1,026,000 increase, $876,000 came from increased interest and fees on loans.
Increases in total investment interest contributed $185,000, but were
partially offset by a decrease of $35,000 in interest on federal funds sold.
The average yield on the entire loan portfolio for the nine month period ended
September 30, 1995 was 8.95% which matched that of the same period in 1994.
The average balance outstanding increased from $88,242,000 at September 30,
1994 to $101,258,000 at September 30, 1995, while interest income increased
from $5,923,000 to $6,799,000 for the comparable, nine-month periods. Although
the yield on commercial loans increased, both the yield on mortgages and the
yield on installment loans decreased.
The average yield on investment securities improved to 5.75% for the nine
month period ended September 30, 1995 from 5.23% for the same period in 1994.
This improvement, while average balances remained relatively stable, actually
resulted in an increase of $150,000 in total income. This analysis includes
interest on federal funds sold. Active management of the Bank's liquid funds
contributed to this improvement.
The overall yield on the Bank's earning assets improved from 7.84% for the
nine month period ended September 30, 1994 to 8.09% for the same period in
1995. During this time, earning assets increased from $125,817,000 to
$138,922,000. Earning assets accounted for 93.6% of all assets at September
30, 1995 compared with only 92.6% of all assets at September 30, 1994.
Total interest expense increased by 35.9%, or $1,026,000 between the two nine
month periods ended September 30, 1994 and 1995. The overall cost of funds for
the Bank increased from 3.70% at September 30, 1994 to 4.48% at September 30,
1995.
Average balances for both time deposits and borrowed funds contributed
significantly to this increased cost of funds with these averages increasing
by a combined $15,957,000 between the two nine month periods ending September
30, 1994 and 1995. The average cost of these time deposits also increased,
growing from 4.37% at September 30, 1994 to 5.44% at September 30, 1995. This
increase can be directly tied to bank-wide promotions earlier in the year.
The cost of borrowed funds also increased dramatically, with the average cost
of 4.99% at September 30, 1994 growing to 6.05% at September 30, 1995.
Partially offsetting these balances were decreases in money market accounts,
personal investment accounts, and statement savings balances, although not as
dramatic.
The interest margin remained stable, in spite of these changes, at $4,539,000
for the first nine months of both years. Expressed as a percentage of the
increased earning assets level, though, the yield decreased from 4.81% for the
first nine months of 1994 to 4.36% for the same period in 1995.
The provision for loan losses totalled $210,000 through September 30, 1995
compared with only $96,000 through September 30, 1994, an increase of 118.8%.
The net interest margin after the provision, accordingly, decreased by
$114,000, falling from $4,443,000 for the nine month period ended September
30, 1994 to $4,329,000 for the nine month period ended September 30, 1995, a
decrease of 2.6%.
Other income increased from $313,000 for the first nine months of 1994 to
$388,000 for the same period in 1995, an increase of $75,000, or 24.0%.
Included within this total, $23,000 in income was recognized on the sales of
mortgage loans into the secondary market. In addition, service charges on
deposits increased by $20,000, or 10.6% as part of the overall increase.
Other expenses increased by $62,000, or 1.8% between the two nine month
periods ended September 30, 1994 and 1995, growing from $3,368,000 to
$3,430,000. Within this major category, salaries, wages and benefits actually
decreased by $115,000 or 6.7%, as incentive programs were reviewed and
adjusted based on current year's performance to date. Net occupancy expense
and furniture and equipment expenses increased by a combined $96,000 as the
costs of the Bank's newest offices were recognized. The Loan Center opened in
August of 1994 and the Rockland Plaza office opened in December of 1994. There
were no major improvement projects throughout the first nine months of 1995.
FDIC insurance expense decreased from $189,000 for the first nine months of
1994 to $124,000 for the same period in 1995, a decrease of $65,000 or 34.4%.
This decrease is directly attributed to the reduction in rates of FDIC
insurance and the accompanying rebated premium from the FDIC. The Bank
projects that total FDIC insurance costs for 1995 will be $137,000, a decrease
of $117,000, or 46.1% from the 1994 total of $254,000.
Other operating expenses increased $126,000 or 14.5% from $871,000 for the
period ended September 30, 1994 to $997,000 for the period ended September 30,
1995. Included within this category, the costs of maintaining the Bank's other
real estate owned increased from $17,000 to $44,000, and advertising expenses
increased from $114,000 to $133,000 over the two periods. These two increases
account for 36.5% of the total increase in this category.
Income before income taxes decreased from $1,388,000 for the first nine months
of 1994 to $1,287,000 for the same period in 1995, a decrease of $101,000 or
7.3%. This decrease had a positive effect on the income tax provision which
decreased from $330,000 for the period in 1994 to $298,000 for the period in
1995, a decrease of $32,000 or 9.7%.
Net income decreased by $69,000 or 6.5% from $1,058,000 for the nine months
ended September 30, 1994 to $989,000 for the nine months ended September 30,
1995. On a per share basis, net income for the first nine months of 1995 was
$0.83 per share compared with $0.89 per share for the first nine months of
1994. Dividends increased between the periods, growing from $0.31 per share
for the period in 1994 to $0.33 per share for the period in 1995.
Three Month Periods Ended September 30, 1995 and 1994
Total interest income increased by 16.1%, or $409,000 between the three month
periods ended September 30, 1994 and September 30, 1995, growing from
$2,539,000 to $2,948,000. Within this total, all three categories of interest
income increased.
Interest and fees on loans increased by $350,000, or 17.5%, from $2,006,000 to
$2,356,000. Increased volume contributed to this increase. Interest on federal
funds sold increased by 48.0% between the two periods, growing from $50,000
for the quarter ended September 30, 1994 to $74,000 for the quarter ended
September 30, 1995. Although the current level of federal funds sold is zero,
there were significant balances early in the third quarter which contributed
to this increase. In addition, yields on federal funds sold were higher during
the third quarter of 1995 than they were during the third quarter of 1994.
Interest on investment securities also increased between the two periods,
growing to $518,000 for the quarter ended September 30, 1995 from $483,000 for
the quarter ended September 30, 1994, an increase of $35,000 or 0.6%.
Investment activity during the quarter contributed to the higher yield within
the overall investment securities portfolio.
Interest expense increased by $429,000, or 44.2% from the third quarter of
1994 to the third quarter of 1995. During this time, interest expense
increased from $970,000 to $1,399,000. Included within this total were
increases in both interest on deposits and interest on borrowed funds. The
increased volume and cost of deposits and borrowed funds, particularly time
deposits, contributed to the interest expense increase during the periods.
The net interest margin decreased to $1,549,000 from $1,569,000 between the
two quarters ended September 30, 1995 and 1994, respectively, a decrease of
$20,000, or 1.3%. Combined with an increase in the provision for loan losses
between the two periods of $11,000, the net interest margin after the
provision, decreased by $31,000, or 2.0%. For the third quarters of 1994 and
1995, respectively, the interest margins, after the provision, were
$1,545,000, and $1,514,000.
Other income increased by $37,000 or 34.9% between the third quarter of 1994
and the third quarter of 1995, growing from $106,000 to $143,000,
respectively. Service charges on deposits increased by $9,000, while other
operating income increased by $28,000. Included in this other operating income
increase was a recovery of costs associated with an other real estate owned
property which totalled in excess of $8,000.
Total other expenses decreased by $94,000, or 8.2% between the three month
period ended September 30, 1994 and the three month period ended September 30,
1995. A major contributing factor in this total was a refund of an insurance
premium from the FDIC in excess of $75,000. Salaries, wages, and benefits
decreased by $112,000 between the two periods, as costs associated with an
employee incentive program were adjusted based on current year's performance.
<PAGE>
Income before income taxes increased from $501,000 for the three month period
ended September 30, 1994 to $601,000 for the same period in 1995, an increase
of $100,000 or 20.0%. The associated increase in income taxes of $37,000
resulted in net income for the third quarter improving from $377,000 for the
period in 1994 to $440,000 for the period in 1995, an increase of $63,000, or
16.7%.
Net income per share amounted to $0.32 per share for the third quarter of 1994
compared with $0.36 per share for the third quarter of 1995. Dividends paid
amounted to $0.11 per share for both years.
Liquidity and Interest Rate Sensitivity
The banking industry has been required to adapt to an environment in
which interest rates have been volatile and deposit deregulation has provided
customers with the opportunity to invest in liquid, interest rate-sensitive
deposits. The banking industry has adapted to this environment by utilizing a
process known as asset/liability management.
Adequate liquidity means the ability to obtain sufficient cash to meet
all current and projected needs promptly and at a reasonable cost. These needs
include deposit withdrawal, liability runoff and increased loan demand. The
principal sources of liquidity are cash and due from banks, money market
investments, and all unpledged investment securities maturing within one
year. Maturing loans and loan payments are another source of liquidity. The
Bank can also package and sell residential mortgage loans in the secondary
market. Other sources of liquidity are the federal funds market, term
borrowings from the Federal Home Loan Banking System, and the discount window
of the Federal Reserve Banking System. In view of all factors involved, the
Banks's management believes that liquidity is being maintained at an adequate
level.
Asset/liability management is intended to provide for adequate liquidity
and interest rate sensitivity by matching interest rate-sensitive assets and
liabilities and coordinating maturities on assets and liabilities.
Approximately 30% of the commercial loan portfolio is sensitive to interest
rate changes. Other loans are written for relatively short terms and, except
for the majority of residential mortgage loans, provide for a readjustment of
the interest rate at specified times during the term of the loan. In
addition, interest rates offered for all types of deposit instruments are
reviewed weekly and are established on a basis consistent with funding needs
and maintaining a desirable spread between cost and return. The Bank does not
utilize repurchase agreements, reverse repurchase agreements, interest rate
swaps, or other derivative products in its asset/liability management
practices at this time.
<PAGE>
<TABLE>
The following table shows the repricing periods of interest earning
assets and interest bearing liabilities as of September 30, 1995:
INTEREST RATE SENSITIVITY
(Amounts in thousands)
<CAPTION>
Repricing Period
Within One Year to Over
One Year Five Years Five Years Total
<S> <C> <C> <C> <C>
Assets
Securities $ 11,562 $ 20,459 $ 4,772 $ 36,793
Federal Funds Sold 0 0 0 0
Interest-bearing Balances 203 0 0 203
Net Loans 37,835 19,320 49,115 106,270
______ ______ ______ _______
Total $ 49,600 $ 39,779 $ 53,887 $143,266
Liabilities
Total Interest-Bearing
Deposits $ 87,401 $ 29,663 $ 0 $117,064
Other Borrowed Funds 2,295 0 0 2,295
______ ______ _____ _______
Total $ 89,696 $ 29,663 $ 0 $119,359
______ ______ ______ ______
Rate Sensitivity Gap $(40,096) $ 10,116 $53,887 $ 23,907
______ ______ ______ ______
<FN>
</TABLE>
Capital Adequacy
The following table provides information about the capital of the Bank as
it relates to regulatory minimums as of selected Balance Sheet dates:
<TABLE>
<CAPTION>
Regulatory Sept.30, Dec. 31,
Minimum 1995 1994
<S> <C> <C> <C>
Tier I Capital to Risk-Adjusted Assets 4.00% 16.00% 16.47%
Total Capital to Risk-Adjusted Assets 8.00% 17.20% 17.72%
Leverage Ratio 3.00% 10.08% 10.65%
</TABLE>
<PAGE>
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 Vote of Security Holders
None
Item 5. Other Information
The Board of Directors of First Leesport Bancorp, Inc. at its
September 12, 1995 meeting, declared an $.11 per share cash
dividend to be paid October 16, 1995 to holders of record on
September 29, 1995.
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
None
(b) Reports on Form 8-K
None
PAGE
<PAGE>
SIGNATURES
In accordance with the requirements of the Exchange Act, the Registrant
caused this report to be signed on its behalf by the undersigned, thereunto
duly authorized.
FIRST LEESPORT BANCORP, INC.
(Registrant)
Dated: November 8, 1995 By John T. Connelly
John T. Connelly
President and
Chief Executive Officer
Dated: November 8, 1995 By Frederick P. Henrich
Frederick P. Henrich
Treasurer and
Chief Accounting Officer
<PAGE>
[ARTICLE] 9
<TABLE>
<S> <C>
[PERIOD-TYPE] QTR-3
[FISCAL-YEAR-END] DEC-31-1995
[PERIOD-END] SEP-30-1995
[CASH] 4,397,000
[INT-BEARING-DEPOSITS] 203,000
[FED-FUNDS-SOLD] 0
[TRADING-ASSETS] 0
[INVESTMENTS-HELD-FOR-SALE] 21,480,000
[INVESTMENTS-CARRYING] 21,589,000
[INVESTMENTS-MARKET] 15,313,000
[LOANS] 106,270,000
[ALLOWANCE] (1,157,000)
[TOTAL-ASSETS] 151,600,000
[DEPOSITS] 132,459,000
[SHORT-TERM] 1,295,000
[LIABILITIES-OTHER] 1,225,000
[LONG-TERM] 1,000,000
[COMMON] 6,000,000
[PREFERRED-MANDATORY] 0
[PREFERRED] 0
[OTHER-SE] 9,621,000
[TOTAL-LIABILITIES-AND-EQUITY] 151,600,000
[INTEREST-LOAN] 6,799,000
[INTEREST-INVEST] 1,501,000
[INTEREST-OTHER] 124,000
[INTEREST-TOTAL] 8,424,000
[INTEREST-DEPOSIT] 3,627,000
[INTEREST-EXPENSE] 3,885,000
[INTEREST-INCOME-NET] 4,539,000
[LOAN-LOSSES] 210,000
[SECURITIES-GAINS] 1,000
[EXPENSE-OTHER] 3,430,000
[INCOME-PRETAX] 1,287,000
[INCOME-PRE-EXTRAORDINARY] 0
[EXTRAORDINARY] 0
[CHANGES] 0
[NET-INCOME] 989,000
[EPS-PRIMARY] 0.83
[EPS-DILUTED] 0.83
[YIELD-ACTUAL] 4.36
[LOANS-NON] 958,000
[LOANS-PAST] 292,000
[LOANS-TROUBLED] 1,463,000
[LOANS-PROBLEM] 0
[ALLOWANCE-OPEN] 1,124,000
[CHARGE-OFFS] 279,000
[RECOVERIES] 102,000
[ALLOWANCE-CLOSE] 1,157,000
[ALLOWANCE-DOMESTIC] 0
[ALLOWANCE-FOREIGN] 0
[ALLOWANCE-UNALLOCATED] 1,157,000
</TABLE>
