<PAGE> 1
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
SCHEDULE 13D
UNDER THE EXCHANGE ACT OF 1934
(AMENDMENT NO. ___)
FINANCIAL SECURITY CORP.
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(Name of Issuer)
COMMON STOCK
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(Title of Class of Securities)
317660108
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(CUSIP Number)
RICHARD J. PERRY JR., ESQUIRE
LEVI PERRY SIMMONS & LOOTS, P.C.
805 FIFTEENTH STREET, N.W., SUITE 1101
WASHINGTON, D.C. 20005
TEL: (202) 326-8602
- --------------------------------------------------------------------------------
(Name, Address and Telephone Number of Person
Authorized to Receive Notices and Communications)
SEPTEMBER 10, 1996
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(Date of Event which Requires Filing of this Statement)
If the filing person has previously filed a statement on Schedule 13G to report
the acquisition which is the subject if this Schedule 13D, and is filing this
schedule because of Rule 13d-1(b)(3) or (4), check the following box ___ .
Check the following box if a fee is being paid with this statement. _____X___ A
fee is not required only if the reporting person (1) has a previous statement
on file reporting beneficial ownership of more than five percent of the class
of securities described in Item (1); and (2) has filed no amendment subsequent
thereto reporting beneficial ownership of five percent or less of such class.
<PAGE> 2
<TABLE>
<CAPTION>
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CUSIP NUMBER 317660108 PAGE 2 OF 12 PAGES
---------- --------- ------
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<S> <C>
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1. NAME OF REPORTING PERSON/ S.S. OR I.R.S. IDENTIFICATION OF ABOVE PERSON
Financial Institution Partners, L.P. / 52-1899611
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2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) ____
(b) ____
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3. SOURCE OF FUNDS
WC/ OO
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4. IS DISCLOSURE OF LEGAL PROCEEDING REQUIRED PURSUANT TO ITEMS 2(d) & 2(e)
NO
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5. CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
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6. SOLE VOTING POWER
NUMBER OF SHARES
OWNED BY --------------------------------------------------------------------------------------
EACH REPORTING 7. SHARED VOTING POWER
PERSON WITH 121,138 SHARES
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8. SOLE DISPOSITIVE POWER
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9. SHARED DISPOSITIVE POWER
121,138 SHARES
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10. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
121,138 SHARES
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11. DOES THE AGGREGATE AMOUNT IN BOX 10 EXCLUDE CERTAIN SHARES?
No
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12. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (10)
7.81%
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13. TYPE OF REPORTING PERSON
PN
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</TABLE>
<PAGE> 3
<TABLE>
<CAPTION>
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CUSIP NUMBER 317660108 PAGE 3 OF 12 PAGES
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<S> <C>
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1. NAME OF REPORTING PERSON/ S.S. OR I.R.S. IDENTIFICATION OF ABOVE PERSON
Hovde Capital, Inc./ 52-1891904
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2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) ____
(b) ____
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3. SOURCE OF FUNDS
AF
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4. IS DISCLOSURE OF LEGAL PROCEEDING REQUIRED PURSUANT TO ITEMS 2(d) & 2(e)
NO
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5. CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
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6. SOLE VOTING POWER
NUMBER OF SHARES
OWNED BY --------------------------------------------------------------------------------------
EACH REPORTING 7. SHARED VOTING POWER
PERSON WITH
121,138 SHARES
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8. SOLE DISPOSITIVE POWER
--------------------------------------------------------------------------------------
9. SHARED DISPOSITIVE POWER
121,138 SHARES
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10. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
121,138 SHARES
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11. DOES THE AGGREGATE AMOUNT IN BOX 10 EXCLUDE CERTAIN SHARES?
NO
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12. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (10)
7.81%
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13. TYPE OF REPORTING PERSON
CO
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</TABLE>
<PAGE> 4
ITEM 1. SECURITY AND ISSUER
The class of security to which this statement relates is the
common stock, par value $.01 per share (the "Shares"), of Financial Security
Corp. (the "Issuer"). The address of the principal executive offices of the
Issuer is 1209 North Milwaukee Avenue, Chicago, Illinois, 60622-2294.
ITEM 2. IDENTITY AND BACKGROUND
The persons filing this statement are Financial Institution
Partners, L.P. (the "Limited Partnership") and Hovde Capital, Inc., who are
collectively referred to herein as the "Reporting Persons." The Limited
Partnership is a Delaware limited partnership formed for the purpose of
investing in, among other things, the equity securities of various financial
institutions. Hovde Capital, Inc., a Delaware general business corporation, is
the general partner (the "General Partner") of the Limited Partnership.
Attached as Schedule 1 hereto and incorporated by reference
herein is a list containing the principal business and the address of its
principal business and office for the Limited Partnership and the General
Partner as well as information required by (a) through (f) of this Item as to
each executive officer, director and/or controlling person of the General
Partner. The General Partner controls the Limited Partnership.
None of the Reporting Persons or executive officers, directors
or controlling persons of the General Partner has, during the last five years,
been convicted in a criminal proceeding (excluding traffic violations or
similar misdemeanors) or been a party to a civil proceeding of a judicial or
administrative body of competent jurisdiction and as a result of such
proceeding was or is subject to a judgment, decree or final order enjoining
future violations of, or prohibiting or mandating activities subject to,
federal or state securities laws or finding any violation with respect to such
laws.
The Reporting Persons do not believe that they constitute a
"group" within the meaning of Section 13(d)(3) of the Securities Exchange Act
of 1934. Nevertheless, the Reporting Persons are making this filing because of
the possibility that they may be deemed a group, although each of the Reporting
Persons disclaims any membership in, and the existence of, such a group.
Neither the making of this filing nor any statement contained herein shall be
deemed to be an admission by any of the Reporting Persons that a group exists.
ITEM 3. SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATION
Information regarding the source and amount of funds used by
the Reporting Persons in acquiring beneficial ownership of their Shares is set
forth in Schedule 2 attached hereto and incorporated herein by reference.
<PAGE> 5
ITEM 4. PURPOSE OF TRANSACTION
The Reporting Persons have acquired the Shares for investment
purposes and as set forth below:
(a) Each of the Reporting Persons may independently acquire
additional Shares or dispose of some or all of its Shares.
(b) None.
(c) None.
(d) None.
(e) None.
(f) None.
(g) None.
(h) None.
(i) None.
(j) None.
ITEM 5. INTEREST IN SECURITIES OF THE ISSUER
(a), (b) Schedule 3 hereto, which is incorporated by
reference herein, sets forth, as of September 20, 1996 information relating to
the aggregate number of Shares of the Issuer and the percentage of the
outstanding Shares of the Issuer as of such date (based upon information
provided by the Issuer, there are 1,550,846 Shares outstanding as of that date)
as to each of the Reporting Persons.
(c) Schedule 4 hereto, which is incorporated by reference
herein, describes, as of September 20, 1996, transactions in the Shares
effected during the past sixty (60) days by the Reporting Persons.
(d) None.
(e) Not applicable.
Each of the Reporting Persons disclaims beneficial ownership
of Shares beneficially owned by any of the other Reporting Persons.
<PAGE> 6
ITEM 6. CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS OR RELATIONSHIPS WITH RESPECT
TO SECURITIES OF THE ISSUER
See response to Item 4 hereof.
Item 7. MATERIALS TO BE FILED AS EXHIBITS
Exhibit A - Consent Agreement pursuant to 17 C.F.R.Section
13d-1(f)(1).
<PAGE> 7
SCHEDULE 1
INFORMATION RELATING TO REPORTING PERSONS
<TABLE>
<CAPTION>
PRINCIPAL BUSINESS AND
ADDRESS OF PRINCIPAL BUSINESS
NAME OR PRINCIPAL OFFICE
---- -----------------------------
<S> <C>
Financial Institution Partners, L.P. Limited partnership formed to make investments primarily in
equity securities of financial institutions
1629 Colonial Parkway
Inverness, IL 60067
Organized: State of Delaware
Hovde Capital, Inc. General business corporation formed to serve as the general
partner of the Limited Partnership
1629 Colonial Parkway
Inverness, IL 60067
Incorporated: State of Delaware
</TABLE>
<PAGE> 8
INFORMATION RELATING TO EXECUTIVE OFFICERS, DIRECTORS AND/OR CONTROLLING
PERSONS
<TABLE>
<CAPTION>
NAME PRINCIPAL OCCUPATION
ADDRESS BUSINESS ADDRESS CITIZENSHIP
------------ ----------------------- ---------------------
<S> <C> <C>
Steven D. Hovde Investment banker U.S.
1629 Colonial Parkway Hovde Financial, Inc.
Inverness, IL 60067 1629 Colonial Parkway
Inverness, IL 60067
Investment banking firm
Eric D. Hovde Investment banker
1826 Jefferson Place, N.W. Hovde Financial, Inc. U.S.
Washington, D. C. 20036 1826 Jefferson Place, N.W.
Washington, D. C. 20036
Investment banking firm
Braddock J. LaGrua Investment banker
1826 Jefferson Place, N.W. Hovde Financial, Inc. U.S.
Washington, D. C. 20036 1826 Jefferson Place, N.W.
Washington, D. C. 20036
Investment banking firm
</TABLE>
<PAGE> 9
SCHEDULE 2
The following table sets forth the amount and source of funds
used by each Reporting Person in acquiring the Shares beneficially owned by it.
<TABLE>
<CAPTION>
AMOUNT
TOTAL ORIGINALLY FINANCED/ SOURCE OF
NAME CONSIDERATION CURRENT BALANCE* FUNDS *
- ---- ------------- --------------- ------------
<S> <C> <C> <C>
Financial
Institution $2,673 252.50 $1,713,872.50/ Working Capital/
Partners, L.P. $1,713,872.50 Margin Account
Hovde Capital, Inc. $2,673 252.50 $1,713,872.50/ Working Capital of
$1,713,872.50 Affiliate including Margin
Account
</TABLE>
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* $1,713,872.50 for the purchase of 65,638 Shares was financed by a line of
credit at Harris Trust at federal funds +5/8; a total of 75,900 Shares
(including the 65,638 Shares) are held by Harris Trust as collateral for the
Partnership's line of credit.
<PAGE> 10
SCHEDULE 3
The following table sets forth the number and approximate percentage
of Shares beneficially owned by each of the Reporting Persons. Each of the
Reporting Persons has shared power to vote or to direct the vote and to dispose
or to direct the disposition of the Shares of which each of them, respectively,
possesses beneficial ownership.
<TABLE>
<CAPTION>
APPROXIMATE
NAME NUMBER OF SHARES PERCENTAGE
---- ---------------- --------------
<S> <C> <C>
Financial Institution 121,138 7.81%
Partners, L.P.
Hovde Capital, Inc. 121,138 7.81%
</TABLE>
<PAGE> 11
SCHEDULE 4
DESCRIPTION OF TRANSACTIONS IN SHARES EFFECTED WITHIN 60 DAYS
The reporting persons effected the following transactions in the Shares within
sixty (60) days of September 20, 1996:
<TABLE>
<CAPTION>
TRANSACTION AMOUNT OF TRANSACTION TRANSACTION
DATE SHARES PRICE BROKER TYPE
--------------- -------------- ---------------- --------------- ------------
<S> <C> <C> <C> <C>
08/1/96 4,400 $25.625 Chicago* Buy
08/05/96 2,000 $25.688 Chicago* Buy
08/21/96 14,000 $25.875 Chicago* Buy
09/10/96 45,238 $26.250 Chicago* Buy
</TABLE>
- -----------------------------
* Chicago Capital
<PAGE> 12
EXHIBIT INDEX
Exhibit A - Consent Agreement pursuant to 17 C.F.R.Section 13d-1(f)(1).
<PAGE> 1
EXHIBIT A
Consent Agreement Pursuant to 17 C.F.R. Section 13d-1(f)(1)
Each of the undersigned hereby consents and agrees to the filing on behalf of
each of them of the foregoing joint statement on Schedule 13D pursuant to 17
C.F.R. 13d-1(f)(1) with respect to his/its beneficial ownership of the shares
of the Issuer.
FINANCIAL INSTITUTION PARTNERS, L.P.,
by its General Partner, HOVDE CAPITAL, INC.
By: /s/ Steven D. Hovde
Its: Chairman and Chief Executive Officer
HOVDE CAPITAL, INC.
By: /s/ Steven D. Hovde
Its: Chairman and Chief Executive Officer
