SECURITIES AND EXCHANGE COMMISSION
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, 1997 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 number 0-17099
HOME PORT BANCORP, INC.
(EXACT NAME OF SMALL BUSINESS ISSUER AS SPECIFIED IN ITS CHARTER)
Delaware 04-3016821
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
104 Pleasant Street
Nantucket, Massachusetts 02554
(Address of principal executive office) (Zip Code)
(508) 228-0580
(Issuer's telephone number, including area code)
Not applicable.
- --------------------------------------------------------------------------------
(Former name, former address and former fiscal year, if changed since last
report)
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 [ ]
The number of shares outstanding of each of the registrant's classes of common
stock as of March 31, 1997:
Common Stock $.01 par value 1,841,890
(Title of Class) (Shares Outstanding)
Transitional Small Business Disclosure Format (check one)
Yes [ ] No [ X ]
<PAGE>
Home Port Bancorp, Inc.
INDEX
PART I - FINANCIAL INFORMATION
Consolidated Balance Sheet at March 31, 1997 and December
31, 1996
Consolidated Statement of Earnings for the three months
ended March 31, 1997 and 1996.
Consolidated Statement of Changes in Stockholders' Equity
at March 31, 1997
Consolidated Statements of Cash Flows for the three months
ended March 31, 1997 and 1996
Notes to Consolidated Financial Statements
Management's Discussion and Analysis of Financial Condition
and Results of Operation
PART II - OTHER INFORMATION
Signatures
<PAGE>
<TABLE>
<CAPTION>
Home Port Bancorp, Inc.
Consolidated Balance Sheet (Unaudited)
(In Thousands, Except Per Share Data)
March 31, December 31,
1997 1996
--------- ---------
<S> <C> <C>
Assets
Cash and due from banks ............................ $ 4,996 $ 5,073
Interest bearing deposits in banks ................. 37 46
Federal funds sold ................................. -- 4,700
--------- ---------
Total cash and cash equivalents .................... 5,033 9,819
Securities held to maturity (market value
$13,824 and $14,526) (note 2) ................. 14,049 14,663
Securities available for sale (amortized cost
of $8,857 and $8,104) (note 2) ................ 8,761 8,082
Loans, net of allowance for possible loan
losses of $2,417 and $2,365 (note 3) .......... 147,630 142,425
Loans held for sale ................................ 7,659 8,866
Other real estate owned ............................ 61 61
Land, buildings and equipment, net ................. 1,429 1,422
Accrued income receivable .......................... 1,057 1,093
Net deferred tax asset ............................. 385 347
Stock in FHLB-Boston, at cost ...................... 2,321 2,321
Prepaid expenses and other assets .................. 819 832
--------- ---------
Total assets ....................................... $ 189,204 $ 189,931
========= =========
<PAGE>
<CAPTION>
Home Port Bancorp, Inc.
Consolidated Balance Sheet (Unaudited) (continued)
(In Thousands, Except Per Share Data)
March 31, December 31,
1997 1996
--------- ---------
<S> <C> <C>
Liabilities and Stockholders' Equity
Liabilities:
Deposits (Note 4) .................................. $ 127,212 $ 135,082
Borrowed funds ..................................... 39,237 32,335
Accrued expenses ................................... 1,513 1,346
Other liabilities .................................. 769 1,065
--------- ---------
Total liabilities .................................. 168,731 169,828
--------- ---------
Commitments and contingencies (notes 3 and 5)
Stockholders' equity
Preferred stock, $.01 par value, 2,000,000
shares authorized, none issued ............... -- --
Common stock, $.01 par value, 10,000,000 shares
authorized, 2,325,494 shares issued ........ 23 23
Additional paid-in capital ......................... 17,473 17,473
Retained earnings .................................. 7,431 7,017
Unrealized (loss) on securities available for sale,
net of taxes (note 2) ....................... (57) (13)
Less: Treasury stock, at cost (483,604 shares) ..... (4,397) (4,397)
---------
Total stockholders' equity ................... 20,473 20,103
--------- ---------
Total liabilities and stockholders' equity ......... $ 189,204 $ 189,931
========= =========
See accompanying notes to unaudited consolidated financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Home Port Bancorp, Inc.
Consolidated Statements of Earnings (Unaudited)
(In Thousands, Except Share and Per Share Data)
Three Months Ended
March 31,
-------------------
1997 1996
------- -------
<S> <C> <C>
Interest and dividend income:
Interest on loans .................................. $ 3,418 $ 2,977
Interest on securities ............................. 322 352
Dividends .......................................... 36 38
Federal funds sold and interest bearing deposits ... 12 12
------- -------
Total interest and dividend income .......... 3,788 3,379
------- -------
Interest expense:
Interest on depositors' accounts ................... 1,092 984
Interest on borrowed funds ......................... 552 517
------- -------
Total interest expense ...................... 1,644 1,501
------- -------
Net interest and dividend income ........................ 2,144 1,878
Provision for loan losses ............................... 37 -
------- -------
Net interest and dividend income after
provision for loan losses ....................... 2,107 1,878
------- -------
Non-interest income:
Deposit servicing fees ............................. 91 77
Loan servicing fees ................................ 66 82
Other fees and income .............................. 49 62
Net gain (loss) from sale of mortgage loans ........ 13 (5)
Net gain (loss) from securities .................... 4 -
------- -------
Total non-interest income ................... 223 216
------- -------
<PAGE>
<CAPTION>
Home Port Bancorp, Inc.
Consolidated Statements of Earnings (Unaudited) (continued)
(In Thousands, Except Share and Per Share Data)
Three Months Ended
March 31,
-------------------
1997 1996
------- -------
<S> <C> <C>
Non-interest expense:
Salaries and employee benefits ..................... 619 533
Building and equipment expenses .................... 125 105
Deposit insurance fees ............................. 10 3
Professional fees .................................. 67 77
Other .............................................. 220 222
------- -------
Total non-interest expense .................. 1,041 940
------- -------
Income before income taxes .............................. 1,289 1,154
Provision for income taxes (Note 5) ..................... 507 448
------- -------
Net income .............................................. $ 782 $ 706
======= =======
Earnings per common share ............................... $ 0.42 $ 0.38
======= =======
Weighted number of common shares outstanding ............ 1,842 1,842
======= =======
See accompanying notes to unaudited consolidated financial statements
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Home Port Bancorp, Inc.
Consolidated Statements of Changes in Stockholders' Equity (Unaudited)
(In Thousands)
Net
Unrealized
Gain
(loss) on
Additional Securities Total
Common Paid-in Retained Treasury Available Stockholders'
Stock Capital Earnings Stock For Sale Equity
----------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Balance at December 31, 1995 $23 $17,473 $5,271 $(4,397) $ 9 $18,379
Change in unrealized loss on securities
available for sale - - - - (22) (22)
Cash dividends paid at $.70 per share - - (1,289) - - (1,289)
Net income - - 3,035 - - 3,035
----------------------------------------------------------------------
Balance at December 31, 1996 23 17,473 7,017 (4,397) (13) 20,103
Change in unrealized loss on securities
available for sale - - - - (44) (44)
Cash dividends paid at $.20 per share - - (368) - - (368)
Net income - - 782 - - 782
----------------------------------------------------------------------
Balance at March 31, 1997 $23 $17,473 $7,431 $(4,397) $(57) $20,473
======================================================================
See accompanying notes to unaudited consolidated financial statements
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Home Port Bancorp, Inc.
Consolidated Statements of Cash Flows (Unaudited)
(In Thousands)
Three Months Ended
March 31,
-------------------
1997 1996
------- -------
<S> <C> <C>
Net cash flows from operating activities:
Net income ..................................................... $ 782 $ 706
Adjustments to reconcile net income to net cash
provided by operating activities:
Net decrease in accrued income receivable .................. 36 21
Net increase in accrued expenses ........................... 167 54
Net amortization of securities premiums .................... 19 29
Net decrease in loans held for sale ........................ 1,221 5,294
Amortization of deferred loan origination fees ............. (66) (64)
Amortization of deferred premiums on loans sold ............ (12) -
Depreciation of building and equipment ..................... 60 48
Net decrease (increase) in prepaid expenses and other assets 13 (15)
Net (decrease) increase in other liabilities ............... (296) 17
Deferred income taxes ...................................... (9) (5)
Net gain on securities and other assets .................... (4) --
Net (gain) loss on sale of mortgage loans .................. (2) 5
Provision for loan losses .................................. 37 --
------- -------
Net cash provided by operating activities .......................... 1,946 6,090
------- -------
Cash flows from investing activities:
Purchases of securities held to maturity ....................... (1,733) --
Purchases of securities available for sale ..................... (2,002) (996)
Proceeds from sales of securities available for sale............ 752 --
Proceeds from maturities/calls of securities ................... 2,622 2,625
Principal payments on mortgage-backed securities ............... 208 238
Net increase in loans .......................................... (5,176) (7,939)
Purchases of land, buildings and equipment ..................... (67) (89)
------- -------
Net cash provided by investing activities .......................... (5,396) (6,161)
------- -------
<PAGE>
<CAPTION>
Home Port Bancorp, Inc.
Consolidated Statements of Cash Flows (Unaudited)
(In Thousands)
Three Months Ended
March 31,
-------------------
1997 1996
------- -------
<S> <C> <C>
Cash flows from financing activities:
Net increase (decrease) in deposits ............................ (7,870) (718)
Federal Home Bank advances ..................................... 8,000 7,500
Federal Home Loan Bank repayments .............................. (1,350) (4,674)
Net (decrease) increase in short term borrowings ............... 252 (3,000)
Cash dividends paid ............................................ (368) (276)
------- -------
Net cash provided by financing activities .......................... (1,336) (1,168)
------- -------
Net (decrease) increase in cash and cash equivalents ............... (4,786) (1,239)
Cash and cash equivalents at beginning of period ................... 9,819 6,636
------- -------
Cash and cash equivalents at end of period ......................... $ 5,033 $ 5,397
======= =======
Supplemental disclosures of cash flow information:
Cash paid during the period for:
Interest ................................................... 1,599 1,493
Income taxes ............................................... 367 303
Dividends declared ............................................. 368 276
Non-cash gains on sales of loans ............................... 11 --
See accompanying notes to unaudited consolidated financial statements
</TABLE>
<PAGE>
Home Port Bancorp, Inc. and Subsidiaries
Notes to Unaudited Consolidated Financial Statements
1. Consolidated Financial Statements
The unaudited consolidated financial statements of Home Port Bancorp, Inc. ("The
Company") and its wholly owned subsidiaries, Nantucket Bank ("the Bank") and
N.B. Securities, Inc. ("a Massachusetts Securities Corporation") have been
prepared in accordance with regulations of the Securities and Exchange
Commission. Certain information, required by generally accepted accounting
principles, has been condensed or omitted pursuant to such rules and
regulations. Inter-company accounts and transactions have been eliminated.
The financial statements for the periods ended March 31, 1997 and 1996 are
unaudited, but include normal recurring adjustments which management considers
necessary for a fair presentation of results. Interim results are not
necessarily indicative of the results to be expected for the entire year. It is
recommended that these statements be read in conjunction with the audited
financial statements for the year end December 31, 1996.
2. Securities (in thousands)
Securities held to maturity consist of the following:
<TABLE>
<CAPTION>
March 31, 1997 December 31, 1996
------------------- -------------------
Book Market Book Market
Value Value Value Value
<S> <C> <C> <C> <C>
United States Government and agency obligations $ 2,250 $ 2,231 $ 2,341 $ 2,326
Mortgage-backed securities .................... 7,273 7,077 7,486 7,373
State and municipal obligations ............... 384 383 565 564
Other bonds and notes ......................... 4,142 4,133 4,271 4,263
------- ------- ------- -------
Total securities held to maturity .......... $14,049 $13,824 $14,663 $14,526
======= ======= ======= =======
</TABLE>
Securities available for sale consist of the following:
<TABLE>
<CAPTION>
March 31, 1997 December 31, 1996
------------------- -------------------
Book Market Book Market
Value Value Value Value
<S> <C> <C> <C> <C>
United States Government and agency obligations $6,201 $6,105 $5,700 $5,663
State and municipal obligations 796 796 798 804
Other bonds and notes 748 746 1,494 1,501
Marketable equity securities 1,112 1,114 112 114
------ ------ ------- ------
Total securities available for sale $8,857 $8,761 $8,104 $8,082
====== ====== ======= ======
</TABLE>
<PAGE>
Home Port Bancorp, Inc. and Subsidiaries
Notes to Unaudited Consolidated Financial Statements
3. Loans, Net (in thousands)
The composition of the balances of loans is as follows:
<TABLE>
<CAPTION>
March 31, December 31,
1997 1996
--------- ---------
<S> <C> <C>
Mortgage loans:
Residential
Fixed .............................. $ 18,630 $ 18,407
Adjustable ......................... 63,112 61,316
Residential construction ................ 21,235 21,100
Commercial .............................. 32,461 33,891
Commercial construction ................. 6,617 5,960
--------- ---------
Total principal balances ......... 142,055 140,674
Less:
Due borrowers on uncompleted loans
Residential ........................ (6,312) (6,743)
Commercial ........................ (2,422) (3,342)
Deferred loan origination fees .......... (516) (517)
--------- ---------
Total mortgage loans ............... 132,805 130,072
Other loans:
Commercial business ..................... 11,597 8,534
Second mortgage ........................ 1,929 1,987
Home equity ............................ 1,293 1,542
Passbook and stock secured ............. 800 960
Consumer ............................... 1,623 1,695
--------- ---------
Total other loans ................. 17,242 14,718
Less: Allowance for possible loan losses ..... (2,417) (2,365)
========= =========
Loans, net ........................ $ 147,630 $ 142,425
========= =========
</TABLE>
The Federal Home Loan Bank has a blanket lien covering residential mortgage
loans as collateral for the Bank's borrowing from the FHLB.
Effective January 1, 1997 the Bank adopted Statement of Financial Accounting
Standards ("SFAS") No. 125 "Accounting for Transfers and Servicing of Financial
Assets and Extinguishments of Liabilities". The Statement provides accounting
and reporting standards for transfers and servicing of financial assets and
extinguishments of liabilities. Those standards are based on an approach that
focuses on control, whereby after a transfer of financial assets, an entity
recognizes the financial and servicing assets it controls and the liabilities it
has incurred, derecognizes financial assets when control has been surrendered,
and derecognizes liabilities when extinquished. With adoption of this statement
the Bank recognized $13 thousand in deferred gains related to the sale of
participation interests in mortgage loans where the Bank retained servicing
rights.
<PAGE>
Home Port Bancorp, Inc. and Subsidiaries
Notes to Unaudited Consolidated Financial Statements
A summary of the transactions in the allowance for possible loan losses is as
follows:
<TABLE>
<CAPTION>
Three Months Ended
March 31,
----------------------
1997 1996
------- -------
<S> <C> <C>
Balance at beginning of period .................... 2,365 $ 2,249
Provisions ................................. 37 -
Recoveries ................................. 17 96
Realized losses charged to allowance ....... (2) -
------- -------
Balance at end of period .......................... $ 2,417 $ 2,345
======= =======
</TABLE>
The allowance for possible loan losses is allocated as follows:
<TABLE>
<CAPTION>
Three Months Ended
March 31,
-----------------------
1997 1996
------ ------
<S> <C> <C>
Residential mortgage loans ................... $ 526 $ 532
Commercial real estate loans ................. 1,223 1,207
Commercial loans ............................. 193 165
All other loans .............................. 227 306
Unallocated .................................. 248 135
------ ------
Total ................................... $2,417 $2,345
====== ======
</TABLE>
Non-performing loans are summarized as follows:
<TABLE>
<CAPTION>
March 31, December 31,
1997 1996
---- ----
<S> <C> <C>
Loans accounted for on a non-accrual basis
$ 8 $ 10
Accruing loans 90 days past due ...................... 413 433
Impaired loans ....................................... -- --
</TABLE>
<PAGE>
Home Port Bancorp, Inc. and Subsidiaries
Notes to Unaudited Consolidated Financial Statements
4. Deposits (in thousands)
A summary of deposit balances, by type, is as follows:
<TABLE>
<CAPTION>
March 31, December 31,
1997 1996
-------- --------
<S> <C> <C>
Demand (non-interest bearing) .................. $ 8,717 $ 9,955
Savings:
NOW ....................................... 24,771 31,223
Regular and 90-day notice accounts ........ 12,925 13,779
Money market deposit accounts ............. 22,034 22,672
Advance payments from mortgagors .......... 374 131
-------- --------
Total savings ......................... 60,104 67,805
-------- --------
Time certificates of deposit ................... 58,391 57,322
-------- --------
Total deposits ........................ $127,212 $135,082
======== ========
</TABLE>
5. Commitments
In the normal course of business, there are outstanding commitments that are not
reflected in the balance sheet. Firm commitments to originate mortgage and
commercial loans were $4.2 million at March 31, 1997.
6. Income Taxes
The effective rate for the quarter ended March 31, 1997 is 39%, which is less
than the statutory rate of 42% primarily due to a reduction in the valuation
allowance and the status of N.B. Securities, Inc. as a Massachusetts security
corporation.
<PAGE>
Home Port Bancorp, Inc. and Subsidiaries
Management's Discussion and Analysis of Financial Condition
and Results of Operations
Unaudited Interim Information for March 31, 1997
Consolidated Balance Sheet
Total assets of Home Port Bancorp, Inc. (the "Company") remained stable during
the first quarter of 1997, decreasing only $.7 million to $189.2 million at
March 31, 1997 from $189.9 million at December 31, 1996. For the comparable
three month period in 1996, total assets decreased $.4 million to $166.9 million
from 167.3 million. Major balance sheet categories are discussed in detail
below.
Net loans outstanding (including loans held for sale) were $155.3 million at
March 31, 1997, an increase of $4.0 million, or 2.6%, from the $151.3 million at
December 31, 1996. Loan sales totaled $5.0 million during the first quarter of
1997 as compared to $10.0 million for the corresponding 1996 quarter.
Total deposits decreased by $7.9 million, or 6.2%, to $127.2 million at March
31, 1997 from $135.1 million at December 31, 1996. The Bank usually experiences
a seasonal decrease in deposits during the winter months and deposits decreased
during the first quarter in the previous two years. The seasonal trend is in
line with management's expectations.
Borrowed funds, consisting of Federal Home Loan Bank advances, totaled $39.2
million at March 31, 1997, an increase of $6.9 million from the December 31,
1996 total of $32.3 million. These borrowings were used to fund loan growth
during seasonal periods of deposit decline.
Total stockholders' equity increased by $370 thousand to $20.5 million at March
31, 1997 from $20.1 million at December 31, 1996. This increase reflects net
income of $782 thousand less cash dividends declared of $368 thousand and a $57
thousand unrealized loss on securities available for sale.
Results of Operations
For the quarter ended March 31, 1997, the Company reported net income of $782
thousand or $0.42 per share compared to net income of $706 thousand or $0.38 per
share for the quarter ended March 31, 1996.
The increase in net income is attributable to an increase in net interest and
dividend income, before provision for loan losses, of $266 thousand or 14.2%
compared to the prior year quarter. The net interest margin and net interest
spread were 4.74% and 4.11%, respectively, for the first quarter of 1997
compared to 4.66% and 4.04% for the same period in 1996. This increase was due
to the growth in average loans and deposits combined with lower costs of funds.
Offsetting the increased net interest income were provisions for loan losses and
increases in non-interest expense. A $37 thousand provision for loan losses was
recorded for the quarter ended March 31, 1997; no provision was made in the 1996
quarter. Non-interest expenses increased by $101 thousand compared to the first
quarter 1996 due to increases in both salaries and employee benefits, and
building and equipment expenses. These increases in non-interest expense are
proportional to the Bank's asset growth and the Bank's efficiency ratio has
improved to 44.05% for the quarter ended March 31, 1997 from 44.89% for the same
period 1996.
<PAGE>
Home Port Bancorp, Inc. and Subsidiaries
Management's Discussion and Analysis of Financial Condition
and Results of Operations
Unaudited Interim Information for March 31, 1997
Return on Equity
Return on average equity has increased to an annualized rate of 15.45% for the
first quarter of 1997 from 15.24% for the same period in 1996. This improvement
is attributable to higher earnings offset by a higher capital base.
Provision for Loan Losses
The allowance for loan losses at March 31, 1997 was $2.4 million or 1.53% of
total loans compared to $2.4 million, or 1.54% of total loans, at December 31,
1996. During the quarter ending March 31, 1997 the Bank recorded a provision for
loan losses of $37 thousand. This is consistent with management's strategy
undertaken in 1996 to provide additional reserves in relation to the growing
loan portfolio. The Bank also had recoveries of $17 thousand and charge-offs of
$2 thousand during the first quarter. The Bank believes its current level of
loan loss reserves to be adequate. Any unforeseen future economic problems,
however, could lead to the Bank experiencing additional delinquencies which may
require additional provisions for loan losses.
Non-performing Loans and Other Real Estate Owned
The Bank's non-performing loans totaled $421 thousand at March 31, 1997
consisting of a $413 thousand past due accruing loan and $8 thousand of
non-accruing loans. Non-performing loans at December 31, 1996 totaled $443
thousand, including $433 thousand past due accruing loans and $10 thousand of
non-accruing loans. None of these loans were to affiliated persons. The accruing
non-performing loan is a first mortgage loan on commercial real estate. As of
March 31, 1997, other real estate owned is $61 thousand; unchanged from December
31, 1996. The Bank had no loans which were considered "impaired" within the
meaning of Statement of Financial Accounting Standards ("SFAS" ) No. 114 and 118
at either March 31, 1997 or December 31, 1996.
At March 31, 1997 management has identified $936 thousand of loans that, while
currently performing, may pose potential problems due to some doubts about the
ability of the borrowers to comply with all of their present loan repayment
terms. The resolution of these loans is not yet known. The Bank believes that
its allowance for loan losses is adequate to absorb any losses that may result
from these loans.
Income Taxes
The Company and its subsidiaries, on a consolidated basis, are subject to
Federal income tax. The Company is also subject to a Delaware franchise tax and
a Massachusetts tax as a security corporation. The Bank and its subsidiary are
subject to a Massachusetts income tax. For interim unaudited financial
statements, management calculated the provision for taxes using an estimated
combined Federal and state tax rate of approximately 40% and made an adjustment
decreasing the deferred tax valuation reserve. The expected tax rate is reviewed
and adjusted as necessary on a quarterly basis.
<PAGE>
Home Port Bancorp, Inc. and Subsidiaries
Management's Discussion and Analysis of Financial Condition
and Results of Operations
Unaudited Interim Information for March 31, 1997
Liquidity and Capital Resources
Substantially all of the Company's funds are generated through its banking
subsidiary, Nantucket Bank. The Bank's sources are customer deposits,
amortization and payoffs of loans, advances from the Federal Home Loan Bank of
Boston, sale of loans in the secondary market, maturities and sales of
securities and positive cash flows generated from operations. As a member of the
Depositors' Insurance Fund, the Bank also has a right to borrow from the
Depositors Insurance Fund for short-term cash needs by pledging certain assets,
although it has never exercised this right. The Bank's liquidity management
program is designed to assure that sufficient funds are available to meet it's
daily needs.
The Bank believes its capital resources, including deposits, scheduled loan
repayments, revenue generated from the sales of loans and securities, unused
borrowing capacity at the Federal Home Loan Bank of Boston, and revenue from
other sources will be adequate to meet its funding commitments.
At March 31, 1997 and December 31, 1996 the Company's and the Bank's capital
ratios were in excess of regulatory requirements.
<PAGE>
Home Port Bancorp, Inc. and Subsidiaries
PART II. OTHER INFORMATION
Item 1. Legal Proceedings
The Company and its subsidiaries are not involved in any
pending legal proceedings other than those involved in the
ordinary course of their businesses. Management believes that
the resolution of these matters will not materially affect
their businesses or the consolidated financial condition of
the Company and its subsidiary.
Item 2. Changes in Securities.
Not applicable.
Item 3. Defaults Upon Senior Securities.
Not applicable.
Item 4. Submission of Matters to a Vote of Security Holders
Not applicable.
Item 5. Other Information.
A dividend of $.20 per common share was declared on February
4, 1997. The cash dividend was paid on February 28, 1997 to
shareholders of record as of February 14, 1997.
Declaration of dividends by the Board of Directors depends on
a number of factors, including capital requirements,
regulatory limitations, the Company's operating results and
financial condition and general economic conditions.
Item 6. Exhibits and Reports on Form 8-K.
a. Exhibits -- None
b. Reports on Form 8-K - No reports on Form 8-K were filed
during the quarter ended March 31, 1997.
<PAGE>
Home Port Bancorp, Inc. and Subsidiaries
Signatures
In accordance with the requirements of the Securities Exchange Act, the
Registrant caused this report to be signed on its behalf by the undersigned
thereunto duly authorized.
Home Port Bancorp, Inc.
-----------------------
(Registrant)
Date: May 12, 1997 By: /s/ William P. Hourihan, Jr.
----------------------------
William P. Hourihan, Vice President
Date: May 12, 1997 By: /s/ John M. Sweeney
-----------------------
John M. Sweeney, Treasurer
(Chief Financial & Accounting Officer)
<TABLE> <S> <C>
<ARTICLE> 9
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> MAR-31-1997
<CASH> 4,996
<INT-BEARING-DEPOSITS> 37
<FED-FUNDS-SOLD> 0
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 8,761
<INVESTMENTS-CARRYING> 14,049
<INVESTMENTS-MARKET> 13,824
<LOANS> 150,047
<ALLOWANCE> 2,417
<TOTAL-ASSETS> 189,204
<DEPOSITS> 127,212
<SHORT-TERM> 39,237
<LIABILITIES-OTHER> 2,282
<LONG-TERM> 0
0
0
<COMMON> 23
<OTHER-SE> 20,450
<TOTAL-LIABILITIES-AND-EQUITY> 189,204
<INTEREST-LOAN> 3,418
<INTEREST-INVEST> 370
<INTEREST-OTHER> 0
<INTEREST-TOTAL> 3,788
<INTEREST-DEPOSIT> 1,092
<INTEREST-EXPENSE> 1,644
<INTEREST-INCOME-NET> 2,144
<LOAN-LOSSES> 37
<SECURITIES-GAINS> 1
<EXPENSE-OTHER> 1,041
<INCOME-PRETAX> 1,289
<INCOME-PRE-EXTRAORDINARY> 1,289
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<EPS-PRIMARY> .42
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<ALLOWANCE-CLOSE> 2,417
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</TABLE>
