SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 1998
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: 0-18782
ES&L BANCORP, INC.
(Exact name of registrant as specified in its charter)
Delaware 16-1387158
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
300 W. Water St., Elmira, New York 14901
(Address of principal executive offices) (Zip Code)
Registrant's telephone no., including area code: (607) 733-5533
Former name, former address and former fiscal year, if
changed since last report.
Indicate by check X 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 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
APPLICABLE ONLY TO CORPORATE ISSUERS: Indicate the number
of shares outstanding of each of the issuer's classes of common
stock, as of the latest practicable date. 831,874
<PAGE>
ES&L BANCORP, INC. AND SUBSIDIARIES
September 30, 1998
Index Page
Part I - Financial Information
Item 1 - Financial Statements:
Consolidated Statements of Financial 1
Condition as of September 30, 1998
(Unaudited) and June 30, 1998
Consolidated Statements of Income 2
(Unaudited) for the three months ended
September 30, 1998 and 1997
Consolidated Statements of Cash Flows 3
(Unaudited) for the three months ended
September 30, 1998 and 1997
Notes to Consolidated Financial Statements
Item 2 - Management's Discussion and Analysis of
Financial Condition and Results of Operations
Year 2000 Information
Non-Performing Loans at Sept. 30, 1998 and
June 30, 1998
Risk-Based Capital Information at Sept. 30,
1998 and June 30, 1998
Part II - Other Information
Signatures 16
<PAGE>
<TABLE>
E S & L BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
SEPT. 30, JUNE 30,
1998 1998
(Unaudited) (1)
<S> <C> <C>
ASSETS --------------------------
- ------
Cash and Cash Equivalents $1,621,739 $7,367,355
Investment Securities Held for Sale $72,151 $81,915
Investment Securities, Approximate market value of $23,655 $1,025,244
$23,620 & $1,026,199 at 09/30/98 and 06/30/98
respectively.
Mortgage-Backed Securities Held for Sale $1,129,005 $1,212,122
Mortgage-Backed Securities, Approximate market value of $135,631 $136,478
$135,631 at 09/30/98 and $136,478 at 06/30/98,
respectively
Mortgage Loans Held For Sale $6,047,395 $8,231,474
Loans Recievable, Net $125,693,064 $126,181,335
Federal Home Loan Bank Stock, at cost $1,313,100 $1,313,100
Foreclosed Real Estate-Real Estate Owned $47,296 $485,226
Investment In Joint Venture:
Acquisition, Development & Construction Project $539,775 $765,952
Mortgage Banking Partnership $193,046 $197,646
Property and Equipment, Net $2,864,041 $2,901,870
Accured Interest Recievable $743,885 $775,316
Other Assets $1,590,478 $1,485,171
--------------------------
Total Assets $142,014,261 $152,160,204
==========================
LIABILITIES & STOCKHOLDERS' EQUITY
- ----------------------------------
Liabilities:
Deposits $109,409,905 $112,179,831
Advances - Federal Home Loan Bank of N. Y. $13,744,615 $21,897,091
Other Borrowings $365,224 $0
Accrued Interest Payable:
Deposits $6,055 $7,607
Borrowings $81,778 $84,614
Advances From Borrowers For
Taxes and Insurance $2,923,544 $2,982,958
Other Liabilities $710,616 $507,433
--------------------------
Total Liabilities $127,241,737 $137,659,534
--------------------------
Stockholders' Equity:
Serial Preferred Stock, 500,000
Shares Authorized; None Issued 0 0
Common Stock, $.01 Par Value;
3,000,000 Shares Authorized,
855,967 and 855,967 Shares Issued $8,628 $8,560
Additional Paid-In-Capital $2,671,155 $2,599,654
Retained Earnings - Substantially
Restricted $12,556,064 $12,219,481
Net Unrealized Gain/(Loss) on
Invsetments Held for Sale $57,293 $57,069
Treasury Stock (22,194 & 8,933 shared, respectively), ($520,616) ($384,093)
at cost --------------------------
Total Stockholders' Equity $14,772,524 $14,500,670
Total Liabilities & Stockholders' Equity $142,014,261 $152,160,204
==========================
Shares Outstanding 832,717 831,773
==========================
</TABLE>
<PAGE>
<TABLE>
E S & L BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
<CAPTION>
THREE MONTHS ENDING
Sept. 30 Sept. 30
1998 1997
(Unaudited) (Unaudited)
<S> <C> <C>
Interest Income:
Loans $2,842,265 $3,016,408
Investment Securities $24,795 $89,987
Mortgage-Backed Securities $23,294 $29,086
Interest-Earning Deposits &
Other $18,019 $3,243
--------------------------
Total Interest Income $2,908,373 $3,138,724
Interest Expense:
Deposits $1,335,136 $1,396,492
Borrowings $204,254 $326,478
--------------------------
Total Interest Expense $1,539,390 $1,722,970
Net Interest Income $1,368,983 $1,415,754
Provision For Loan Losses $0 $75,000
--------------------------
Net Interest Income
After Provision for Losses $1,368,983 $1,340,754
Other Income:
Service Fees & Other
Charges $42,819 $43,319
Gain on the Sale of
Investments $0 $846
Income From Loan Servicing $45,054 $67,768
Other Operating Income $136,413 $67,123
Income from Joint Venture $10,500 $3,500
Gain on Sale of Mortgages $138,157 $102,980
--------------------------
Total Other Income $372,943 $285,536
Other Expenses:
Employee Compensation &
Benefits $505,187 $476,901
Office Occupancy & Equipment $131,651 $119,195
FDIC Premiums $28,686 $27,976
Other $194,823 $183,555
--------------------------
Total Other Expense $860,347 $807,627
--------------------------
Income Before Taxes $881,579 $818,663
Income Taxes $335,653 $300,168
--------------------------
NET INCOME $545,926 $518,495
==========================
Earnings Per Share: $1 $1
==========================
Dividend Per Common Share $0 $1
==========================
Avg. Common Shares Outstanding 833,866 845,039
==========================
</TABLE>
<PAGE>
<TABLE>
E S & L BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
THREE MONTHS ENDED SEPTEMBER 30,
<CAPTION>
1998 1997
(Unaudited) (Unaudited)
<S> <C> <C>
CASH FLOWS FROM OPERATION ACTIVITIES
Net Income $545,926 $518,495
Adjustments To Reconcile Net Income To Net
Cash Provided from Operating Activities:
Depreciation $37,829 $42,371
Provision For Loan Losses $0 $75,000
Net Amortization of Premiums
& Discounts $94,738 $37,057
Deferred Loan Origination Fees ($9,349) ($5,771)
(Income)/Loss from ADC Joint Ventur ($10,500) ($3,500)
Changes in Certain Assets and Liabilities:
Mortgage Loans Held For Sale $2,184,079 ($1,208,789)
Foreclosed Real Estate $437,930 ($68,972)
Accured Interest Receivable $31,431 $13,572
Other Assets ($105,307) ($194,685)
Accrued Interest Payable ($4,388) $15,435
Advances From Borrowers For
Taxes and Insurance ($59,414) $34,908
$365,224 $103,492
Other Liabilities $203,183 $207,884
--------------------------
Net Cash (Used For) Provided
From Operating Activities $3,711,382 ($433,503)
CASH FLOWS FROM INVESTMENT ACTIVITIES:
Net Other Decrease In Loans Receivable $471,137 ($1,807,377)
Investment In Joint Ventures $230,777 $8,626
Proceeds from Maturities of Investments $1,001,589 $999,729
Change in Mark to Market Adjustment Items ($373) ($10,577)
Principal Reductions On MBS $83,964 $33,358
Purchases Of Property & Equipment, Net $0 ($2,950)
--------------------------
Net Cash Provided From (Used For)
Investing Activities $1,787,094 ($779,191)
CASH FLOWS FROM FINANCING ACTIVITIES:
Interest Credited To Dep. Accts.,
Excl. Escrow Accounts $1,331,963 $1,394,685
Net Other(Decrease)Increase in Deposits ($4,101,889) ($1,631,188)
Payments On Advances From FHLB ($8,152,476)($21,452,326)
Proceeds From Advances From FHLB $0 $24,100,000
Proceeds From Exercise of Stock Options $24,176 $0
Purchase of Treasury Stock ($136,523) ($217,720)
Dividends Paid on Common Stock ($209,343) ($990,927)
--------------------------
Net Cash (Used For) Provided
from Financing ($11,244,092) $1,202,524
Net Increase (Decrease) In Cash
Equivalents ($5,745,616) ($10,170)
Cash & Cash Equivalents At Beg. Of Per. $7,367,355 $722,932
--------------------------
Cash & Cash Equivalents At End of Per. $1,621,739 $712,762
==========================
</TABLE>
<PAGE>
ES&L BANCORP, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. Basis of Presentation:
The consolidated financial statements include the accounts
of the Corporation and its wholly-owned subsidiary, Elmira
Savings and Loan, F.A. (the Bank), as well as the Bank's wholly
owned subsidiaries, Brilie Corporation (d/b/a ES&L Financial
Services) and ES&L Mortgage Corporation (d/b/a Cayuga Mortgage
Company). All significant inter-company accounts have been
eliminated.
The consolidated financial statements for the three months
ending September 30, 1998 and 1997 are unaudited and do not
include information or footnotes necessary for a complete
presentation of financial condition and results of operations and
changes in cash flows in conformity with generally accepted
accounting principles, but reflect, in the opinion of management,
all adjustments, consisting of normal recurring accruals,
necessary to present fairly these consolidated financial
statements. The results for the three months ending September
30, 1998 are not necessarily indicative of the results to be
expected for the entire fiscal year ending June 30, 1999.
2. Net Income Per Common Share:
Net income per common share is based on the weighted average
total shares outstanding during the respective periods. Weighted
average total shares outstanding for the periods included herein
are as follows:
Sept 30, 1998 Sept. 30, 1997
Three Months Ended 833,866 845,039
MANAGEMENT DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
GENERAL:
ES&L Bancorp, Inc., (the "Corporation") is a Delaware Corporation
whose primary asset is the stock of Elmira Savings & Loan, F.A.
(the "Bank"). The Bank, a federally chartered savings association,
founded in 1888, operates through one office located in Elmira, New
York.
The Corporation, through the Bank, is primarily engaged in the
business of accepting deposits from the general public and
originating loans secured by residential real estate. The Bank
also engages in commercial real estate lending in its primary
market area and, to a lesser extent, consumer lending and invests
in government, federal agency obligations, and high grade corporate
debt securities.
The Bank's operations include two wholly-owned subsidiaries,
Brilie Corporation (d/b/a ES&L Financial Services) and ES&L
Mortgage Corporation (d/b/a Cayuga Mortgage Company). Brilie
Corporation is a provider of nontraditional investment and
insurance products to the Bank's customers and the general public.
The investment products, which include life insurance and annuity
contracts, health insurance and mutual funds, are offered under an
agency relationship with major insurance companies and third party
mutual funds providers. ES&L Mortgage Corporation is engaged in
mortgage banking activities through the origination of mortgage
loans for sale to investors, one of whom is the Bank.
<PAGE>
MANAGEMENT DISCUSSION AND ANALYSIS
FINANCIAL CONDITION AND RESULTS OF OPERATION
FINANCIAL CONDITION:
At September 30, 1998 total assets of the Corporation were $142,014,261,
a reduction of $10,145,943, or 6.67% from the July 1, 1998 start of the
1999 fiscal year when total assets equaled $152,160,204. The majority
of the decline is related to cash and cash equivalents, which has
decreased $5,745,616, and the Corporation's net loan portfolio,
including mortgage loans held for sale, which has decreased by
$2,672,350. The decrease is a result of the continuation of a
relatively flat interest rate yield curve, during which long term
interest rates have remained low for an extended period of time and
has prompted an increased in mortgage origination, and refinance
activity, for the Corporation. Unlike many institutions, the
Corporation sells substantially all of its fixed rate mortgage
originations in the national secondary mortgage market while keeping
adjustable rate mortgages and short term consumer loans in its loan
portfolio. Given the current interest rate environment the Corporation
has experienced a reduction in both total assets and its' loan portfolio.
The Corporation believes that utilizing the national secondary market
is an appropriate tool for managing interest rate risk, and that the
short term benefits of assuming long term interest rate risk does not
out weigh the potential negative long term implications. As a result,
the Corporation's loan portfolio has decreased while at the same time
it's portfolio of loans serviced for others increased by
$9.1 million, during the first quarter of the 1999 fiscal year, and
totaled $160.2 million at September 30, 1998.
The funds generated by the reduction in the Corporation's total assets
have been used to reduce borrowings, which are primarily represented
by Advances from the Federal Home Loan Bank (FHLB Advances), and to
fund deposits outflows as certain depositors search for higher yielding
investment products outside of traditional bank insured deposit accounts.
Since the beginning of the 1999 fiscal year FHLB Advances have been
reduced by $8,152,476, or 37.23%, to $13,744,615, while deposits have
decreased by $2,769,926, or 2.47%, to $109,409,905.
The Corporation's stockholders' equity increased by $271,854, or 1.87%,
to $14,772,524 at September 30, 1998, largely as a result of net income
earned during the recently concluded quarter.
RESULTS OF OPERATION: QUARTER ENDING SEPTEMBER 30, 1998 AND
SEPTEMBER 30, 1997:
Net interest income for the quarter ending September 30, 1998 was
$1,368,983, $46,771, or 3.30% less than net interest income of
$1,415,754 recorded during the quarter ending September 30, 1997.
As was previously mentioned, long term interest rates have fallen
substantially and at the end of the quarter were not significantly
greater than short term rates, thus the existence of a relatively
flat interest rate yield curved has contributed to shrinking net
interest margins.
Interest income earned by the Corporation decreased by $230,351, or 7.34%
from $3,138,724 for the quarter ending September 30, 1997 to $2,908,373
for the quarter ending September 30, 1998. The majority of the interest
income earned by the Corporation is generated from its' loan portfolio.
A combination of a decreased average balance and a reduced average yield
<PAGE>
prompted a $174,143, or 5.77% decrease in interest income recorded from
the loan portfolio. Loan interest income totaled $2,842,265 and
$3,016,408 for the quarters ending September 30, 1998 and 1997,
respectively. As has been previously mentioned, the current low interest
rate environment has prompted a flurry of mortgage refinance activity
and in the case of the Corporation it has represented the shifting
of adjustable rate loans, and in some cases short term consumer debt,
into loans serviced by the Corporation for national secondary mortgage
market investors. For the quarter ending September 30, 1998 the average
balance of loans outstanding equaled $134.8 million, yielding 8.43%,
compared to average loans totaling $139.9 million, yielding 8.63% for
the quarter ending September 30, 1997. A reduction in the average balance
and average yield of the Corporation's investment security portfolio has
prompted a $65,192 decrease in interest earned from this asset. For
the quarter ending September 30, 1998 interest earned on investments
totaled $24,795, compared to $89,987 earned during the comparable 1997
quarter. The majority of the volume decrease is related to the fact
that, during the previous fiscal year, several individual investments
within the portfolio contained callable features and were redeemed by
their issuers. The Corporation reported earnings totaling $18,019
from interest earning deposits during the September 1998 quarter,
an increase of $14,776 over the September 1997 quarter. As a result
of the restructuring and reduction of total assets during the 1998
period, the Corporation has recognized an increase in cash and cash
equivalents and has invested these funds on a short term basis,
typically through federal funds sold, in an attempt to enhance
interest income.
Total interest expense paid by the Corporation totaled
$1,539,390 for the quarter ending September 30, 1998, a decrease of
$183,580, or 10.65%, compared to total interest expense of $1,722,970
for the quarter ending September 30, 1997. The majority of the decrease
is the result of a reduction in interest expense paid on the Corporation's
FHLB Advances, which decreased by $122,224, or 37.44% to $204,254 for
the recently concluded quarter. The decline is attributable to a
reduction in the average balance and cost of the Advances. For the
three months ending September 30, 1998 the average balance of FHLB
Advances was $16.0 million, costing 5.10%, compared to $22.2 million,
costing 5.89% for the comparable 1997 quarter. Additionally, a $1.4 million
reduction in the average balance and a 15 basis point reduction in
the average cost of deposits prompted a $61,356, or 4.39%, decrease
in interest paid to depositors. For the quarter ending September 30,
1998 total deposit interest expense equaled $1,335,136, compared to
$1,396,492 for the comparable 1997 period. The average balance of
deposits was $113.9 million, costing 4.69%, and $115.3 million, costing
4.84%, for the quarters ending September 30, 1998 and 1997, respectively.
Provisions for loan losses are charged to earnings to bring the total
allowance to a level considered appropriate based on historical experience,
the volume and type of lending conducted by the Corporation, industry
standards, the status of past due principal and interest payments,
general economic conditions - particularly as they relate to the
Corporation's market area - and other factors related to the collectibility
of the Corporation's loan portfolio. During the quarter
ending September 30, 1997 the Corporation's provision for loan loss
totaled $75,000. No provision was charged to earnings during the quarter
ending September 30, 1998. At September 30, 1998 the Corporation's total
allowance for loan loss was $1,476,797, compared to $1,426,003
at September 30, 1997.
<PAGE>
Total other income earned by the Corporation equaled $372,943 for
the quarter ending September 30, 1998, an increase of $87,407, or 30.61%,
over the comparable quarter. The majority of the other income earned
by the Corporation was from the gain on the sale of mortgages. As
was previous mentioned, the Corporation sells substantially all of
its' fixed rate mortgages in the national secondary mortgage market,
and the low interest rate environment has increased the demand for
fixed rate mortgages. During the quarter ending September 30, 1998
the Corporation recorded gains of $138,157 from the sale of mortgages,
an increase of $35,177, or 34.16%, compared to $102,980 recorded during
the quarter ending September 30, 1997. The organization also recognized
a substantial increase in other operating income during the September 1998
quarter, which totaled $136,413, compared to $67,123 during the September
1997 quarter. Of the $69,290 increase, approximately $51,000 is directly
related to gains recorded on the sale of foreclosed real estate. No
similar gains were generated during the comparable 1997 quarter.
During the September 1998 quarter, the Corporation's financial services
subsidiary recorded a $ 23,000 increase in commission revenue,from the
sale of non traditional, uninsured, investment products. Despite a
significant increase in the balance of mortgages serviced by the Corporation
in the national secondary mortgage market, income from loan servicing
decreased by $22,714, or 33.52%, to $45,054 for the quarter ending
September 30, 1998. The actual income generated from servicing loans
totaled $ 124,513, an increase of $ 27,904, but was offset by the
amortization of the value of mortgage servicing as required by
Financial Accounting Standards No. 122 (SFAS 122) entitled "Accounting
for Mortgage Servicing Rights," which has increased from $ 28,841,
for the quarter ending September 30, 1997, to $ 79,459 for the quarter
ending September 30, 1998.
Total other expenses increased by $52,720, or 6.53%, to $860,347 for
the quarter ending September 30, 1998, compared to $807,627 for the
quarter ending September 30, 1997. Employee compensation and benefit
expenses equaled $505,187 during the 1998 quarter, an increase of
$28,286, or 5.93%, compared to the September 1997 quarter. The increase
is directly related to annual salary adjustments for employee wages
and directors' fees, as well as an increase in the cost of some
employee benefits. Office occupancy and equipment expense increased
by $12,456, or 10.45%, to $131,651 for the quarter ending September 30,
1998. During the 1997 quarter expenses from service providers were
lower as a result of certain offsets which did not occur during the
1998 period. Other operating expenses equaled $194,823 for the three
months ending September 30, 1998, an increase of $11,268, or 6.14%,
compared to $183,555 for the comparable quarter. The increase is
largely attributable to the expenses related to the increase in
mortgage originations, as well as from the utilization of outside
service providers. The Corporation's income tax provision totaled
$335,653 for the quarter ending September 30, 1998 and $300,168 for
the quarter ending September 30, 1997. The increase is directly related
to the increase in pre-tax net income.
<PAGE>
YEAR 2000 CONSIDERATIONS:
A great deal of information has been disseminated about the
global computer crash that may occur in the year 2000. Many
computer programs that can only distinguish the final two digits
of the year entered (a common programming practice in earlier
years) are expected to read entries for the year 2000 as 1900 and
compute payment, interest or delinquency based on the wrong date
or are expected to be unable to compute payment, interest or
delinquency. Rapid and accurate data processing is essential to
the operations of the Corporation.
During 1997, the Corporation developed a Year 2000
preparedness plan which was submitted and approved by the
Corporation's Board of Directors on July 10, 1997 and was
subsequently submitted to the Office of Thrift Supervision (OTS).
The plan established procedures to contact and monitor the
Year 2000 preparedness of all third party servicers, including
NCR Corporation - the company responsible for the Bank's customer
account processing. NCR has a plan in place which has been
reviewed by external audit organizations, as well as Federal Bank
examiners. NCR is currently in the process of testing their
plan.
All other service providers have been contacted and have
responded identifying the plan they have developed and have
provided testing dates to verify the resolution of any potential
problems.
The Corporation has a plan in place to complete testing of all
critical internal systems and to date all milestones in the plan
have been successfully met. Additionally, the Corporation has
surveyed its commercial loan customer base asking for information
on how those companies are addressing any potential problems.
At the present time, the Corporation anticipates no
significant financial expenditure will be necessary with regard
to year 2000 compliance.
<PAGE>
ELMIRA SAVINGS & LOAN, F.A.
NON-PERFORMING LOANS
Loans are reviewed on a monthly basis and are placed on
non-accrual status when the opinion of management, the collection
of additional interest is doubtful. Residential and commercial
mortgage loans are generally placed on non-accrual when
either principal or interest is more than 90 days past due.
Interest accrued and unpaid at the time a loan is placed on
non-accrual status is charged again interest income. Subsequent
payments are either applied to the outstanding principal balance
or recorded as interest income, depending on the assessment
ultimate collectibility of the loan. Consumer loans are
generally charged off or before the loan becomes 120 days
delinquent, although collection efforts continue.
The following table sets forth information with respect to
the Association's non-performing assets at September 30, 1998 and
June 30, 1998, respectively:
<TABLE>
<CAPTION>
9-30-98 06-30-98
<S> <C> <C>
Loans accounted for on a
non-accrual basis:
Real Estate:
Residential $ 130,312.57 $ 183,402.11
Commercial 341,955.13 29,393.54
Commercial/Line of Credit 88,474.93 50,824.75
Consumer/Home Equity 33,103.43 32,306.68
Commercial(Non-Mortgage) 72,157.30 0.00
Education 0.00 0.00
Consumer 17,059.74 17,059.74
Other 0.00 0.00
Total $ 683,063.10 $ 312,986.82
Accruing loans which are contractually past due 90 days or more:
Real Estate:
Residential $ 124,949.06 $ 0.00
Commercial 104,989.61 0.00
Commercial/Line of Credit 24,638.45 0.00
Consumer/Home Equity 0.00 0.00
Commercial(Non-Mortgage) 110,900.00 0.00
Education 0.00 0.00
Consumer 0.00 0.00
Other 0.00 0.00
Total $ 365,477.12 $ 0.00
Total of non-accrual &
90 days past due loans $1,048,540.22 $ 312,986.82
Percentage of total loans 0.80% .23%
Other non-performing
assets $ 47,295.77 $ 485,226.45
</TABLE>
<PAGE>
ELMIRA SAVINGS & LOAN, F.A.
RISK BASED CAPITAL CALCULATION
<TABLE>
The table below presents the Association's capital position
relative to its various minimum statutory and regulatory
requirements at Septyember 30, 1998 and June 30, 1998 respectively:
<CAPTION>
09-30-98 06-30-98
PERCENT PERCENT
OF OF
AMOUNT ASSETS (1) AMOUNT ASSETS (1)
<S> <C> <C> <C> <C>
Tangible Capital 14,064,654.39 9.93% 13,539,631.76 8.94%
Tangible Capital
Requirement 2,123,938.75 1.50% 2,272,853.87 1.50%
Excess 11,940,715.64 8.43% 11,266,777.89 7.44%
Core Capital 14,064,654.39 9.93% 13,539,631.76 8.94%
Core Capital
Requirement 4,247,877.52 3.00% 4,545,707.74 3.00%
Excess 9,816,776.87 6.93% 8,993,924.02 5.94%
Core and
Supplementary
Capital 15,290,881.38 15.62% 14,805,014.30 14.65%
Current
Risk-Based Capital
Requirement. 7.833,247.15 8.00% 8,087,251.21 8.00%
Excess 7,457,634.23 7.62% 6,717,763.09 6.65%
<FN>
(1) Based upon tangible assets for purposes of the tangible
capital and core capital requirements and risk-weighted assets
for purpose of the risk-based capital requirement.
</TABLE>
<TABLE>
<CAPTION>
03-31-98 06-30-97
<S> <C> <C>
Tangible Assets - 148,809,169.68 149,634,675.66
Risk Weighted Assets - 101,218,895.14 98,842,904.78
</TABLE>
<PAGE>
ES&L BANCORP, INC.
PART II
OTHER INFORMATION
Item 1 - Legal Proceedings
Not Applicable
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
On October 20, 1998, the Board of Directors of ES&L Bancorp,
Inc. declared a cash dividend of $0.25 per share. The total of
dividends to be paid will be $207,969. The dividend will be paid
on November 27, 1998 to stockholders of record on November 13,
1998.
Item 6 - Exhibits and Reports on Form 8-K
Not Applicable
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act
of 1934, the egistrant has duly caused this report to be signed on its
behalf by the undersigned thereunto duly authorized.
ES&L BANCORP, INC.
WILLIAM A. McKENZIE
President and Chief Executive Officer
(Duly Authorized Officer)
J. MICHAEL ERVIN
Sr. Vice President and Chief
Financial Officer
(Principal Financial Officer)
Date: November 16, 1998
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> JUN-30-1999
<PERIOD-END> SEP-30-1998
<CASH> 1621739
<SECURITIES> 2673542
<RECEIVABLES> 133961141
<ALLOWANCES> (1476797)
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 2864041
<DEPRECIATION> 0
<TOTAL-ASSETS> 142014261
<CURRENT-LIABILITIES> 127241737
<BONDS> 0
0
0
<COMMON> 8628
<OTHER-SE> 14142191
<TOTAL-LIABILITY-AND-EQUITY> 142014261
<SALES> 0
<TOTAL-REVENUES> 3281316
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 860347
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 1539390
<INCOME-PRETAX> 881579
<INCOME-TAX> 335653
<INCOME-CONTINUING> 545926
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 545926
<EPS-PRIMARY> 0.65
<EPS-DILUTED> 0.65
</TABLE>
