<PAGE> 1
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
___________________________
FORM 10-Q
[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 0-19783
SUBURBFED FINANCIAL CORP.
-------------------------
(Exact name of registrant as specified in its charter)
Delaware 36-3796361
-------- ----------
(State or other jurisdiction I.R.S. Employer
of incorporation or Identification or
organization) Number
3301 W. Vollmer Road, Flossmoor, Illinois 60422
----------------------------------------- -----
(Address of Principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (708) 333-2200
--------------
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. Yes [X] No [ ]
As of May 8, 1997, the Registrant had 1,261,256 shares of common stock
issued and outstanding.
<PAGE> 2
SUBURBFED FINANCIAL CORP.
Contents
PART I FINANCIAL INFORMATION Page
----
Item 1 Financial Statements
Consolidated Statements of Financial Condition,
March 31, 1997 (Unaudited) and
December 31, 1996 1
Consolidated Statements of Income, Three Months
Ended March 31, 1997 and 1996 (Unaudited) 2
Consolidated Statements of Cash Flows, Three
Months Ended March 31, 1997 and 1996
(Unaudited) 3
Notes to Consolidated Financial Statements 4-6
Item 2 Management's Discussion and Analysis of
Financial Condition and Results of Operations 7-12
PART II OTHER INFORMATION 13-14
<PAGE> 3
SUBURBFED FINANCIAL CORP.
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
<TABLE>
<CAPTION>
MARCH 31 DECEMBER 31
1997 1996
(Unaudited)
ASSETS
<S> <C> <C>
Cash and amounts due from depository institutions $2,677,449 $3,545,166
Interest-bearing deposits 5,549,273 5,307,070
----------------------------
Total cash and cash equivalents 8,226,722 8,852,236
----------------------------
Investment securities held to maturity 4,963,386 3,974,167
(Fair value: 1997 - $4,936,719;1996 - $3,918,125)
Investment securities available for sale, at fair value 3,482,508 3,430,277
Investment securities held for trade 1,315,774 1,361,638
Mortgage-backed securities held to maturity 90,510,142 93,562,881
(Fair value: 1997 - $89,846,124;1996 - $93,408,866)
Mortgage-backed securities available for sale, at market 38,360,660 39,923,032
Loans receivable 249,772,510 241,815,183
Real estate owned 0 14,076
Stock in Federal Home Loan Bank of Chicago 3,300,000 3,300,000
Office properties and equipment 4,634,985 4,699,195
Accrued interest receivable 2,448,345 2,319,523
Prepaid expenses and other assets 669,415 713,523
Deposit base intangible 115,647 126,263
----------------------------
Total assets 407,800,094 404,091,994
=============================
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits 325,973,731 309,581,005
Federal Home Loan Bank advances 45,500,000 55,500,000
Other borrowed money 4,211,000 7,438,000
Advance payments by borrowers for taxes
and insurance 2,675,241 2,799,782
Other liabilities 2,671,612 2,519,525
-----------------------------
Total liabilities 381,031,584 377,838,312
-----------------------------
Stockholders' Equity:
Common stock 13,686 13,653
Additional paid-in capital 8,468,443 8,420,472
Treasury stock -1,625,111 -1,681,562
Retained earnings, substantially restricted 20,568,372 20,021,403
Unrealized gain (loss) on securities available for sale -508,631 -340,285
Common stock acquired by ESOP -148,249 -170,530
Common stock acquired by Bank Incentive Plan 0 -9,469
-----------------------------
Total stockholders' equity 26,768,510 26,253,682
-----------------------------
Total liabilities and stockholders'
equity $407,800,094 $404,091,994
=============================
</TABLE>
See notes to consolidated financial statements
1
<PAGE> 4
SUBURBFED FINANCIAL CORP.
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
<TABLE>
<CAPTION>
THREE MONTHS
ENDED MARCH 31,
1997 1996
<S> <C> <C>
Interest income:
Interest on loans $4,748,011 $3,028,141
Interest on mortgage-backed securities 2,238,191 2,981,802
Interest on investment securities 126,994 128,469
Interest on other financial assets 32,903 46,158
Dividends on FHLB stock 54,925 37,627
--------------------------
Total interest income 7,201,024 6,222,197
--------------------------
Interest expense:
Interest on deposits 3,608,399 3,257,143
Interest on borrowed money 775,734 511,329
--------------------------
Total interest expense 4,384,133 3,768,472
--------------------------
Net interest income before
provision for loan losses 2,816,891 2,453,725
Provision for loan losses 45,000 45,680
--------------------------
Net interest income after
provision for loan losses 2,771,891 2,408,045
--------------------------
Non-interest income:
Loan fees and service charges 155,338 183,461
Commission income 130,144 124,587
Gain on sale of loans and securities - net 82,257 90,749
Unrealized gain (loss) on securities held
for trade - net 24,448 -138
Loss on sale of real estate owned -6,282 0
Deposit-related fees and other income 375,009 372,771
--------------------------
Total non-interest income 760,914 771,430
--------------------------
Non-interest expense:
General and administrative:
Staffing costs 1,459,089 1,334,019
Advertising 48,410 57,931
Occupancy and equipment expenses 477,678 471,437
Data processing 79,902 73,703
Federal deposit insurance premiums 48,045 160,782
Other 405,522 408,594
Total general and administrative --------------------------
expenses 2,518,646 2,506,466
Amortization of deposit base intangible 10,615 12,895
--------------------------
Total non-interest expense 2,529,261 2,519,361
--------------------------
Income before income taxes 1,003,544 660,114
Provision for income taxes 355,700 242,500
--------------------------
Net income $647,844 $417,614
==========================
Earnings per share - primary $.49 $.32
- fully diluted $.49 $.32
Dividends declared per common share $.08 $.08
</TABLE>
See notes to consolidated financial statements
2
<PAGE> 5
SUBURBFED FINANCIAL CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED) THREE MONTHS ENDED
MARCH 31,
1997 1996
Cash flows from operating activities:
Net income $647,844 $417,614
Adjustments to reconcile net income
to net cash from operating activities:
Depreciation 164,200 166,400
Amortization of intangible 10,616 12,895
Amortization of cost of stock benefit plans 31,750 36,486
Amortization of discount on investment securities -5,000 -5,000
Provision for loan losses 45,000 45,680
Net gain on sale of loans and securities -82,257 -90,749
Net (gain) loss on sale of real estate owned 6,282 -13,106
Unrealized (gain) loss on investment securities -24,448 138
Proceeds from sales of trading account securities 395,240 0
Purchase of trading account securities -159,225 -29,625
Net change in:
Accrued interest receivable -128,822 -33,278
Accrued interest payable 8,668 -70,421
Deferred income -10,862 -15,341
Deferred and accrued income taxes -723,810 241,296
Other liabilities 986,695 253,375
Prepaid expenses and other assets 54,334 -498,301
----------- ----------
Net cash flows provided by operating activities 1,216,205 418,063
----------- ----------
Investing activities:
Proceeds from sale of investment securities 25,755 0
Purchases of investment securities -1,075,000 -779,625
Proceeds from sale of mortgage-backed securities 0 21,401,973
Proceeds from repayments of mortgage-backed securities 4,259,255 5,697,034
Purchases of mortgage-backed securities 0 -13,890,580
Purchase of Federal Home Loan Bank stock 0 -245,000
Proceeds from sale of loans 1,703,016 2,627,516
Disbursements for loans -22,178,408 -31,586,055
Loan repayments 12,482,381 16,536,256
Proceeds from sale of real estate owned 12,794 26,703
Property and equipment expenditures -99,990 -44,038
----------- ----------
Net cash flows used in investing activities -4,870,197 -255,816
----------- ----------
Financing activities:
Proceeds from sale of investment securities 31,717 0
Dividends paid on common stock -100,875 -100,862
Proceeds from sale (purchase) of treasury stock 56,451 -326,625
Deposit receipts 236,235,303 230,965,229
Deposit withdrawals -223,051,496 -224,555,280
Interest credited to deposit accounts 3,208,919 2,878,032
Proceeds from borrowed money 35,402,000 37,352,000
Repayment of borrowed money -48,629,000 -47,141,000
Net decrease in advance payments
by borrowers for taxes and insurance -124,541 -255,995
----------- ----------
Net cash flows provided by financing activities 3,028,478 -1,184,501
----------- ----------
Increase (Decrease) in Cash and Cash Equivalents -625,514 -1,022,254
Cash and Cash Equivalents at beginning of period 8,852,236 10,519,464
----------- ----------
Cash and Cash Equivalents at end of period $8,226,722 $9,497,210
=========== ==========
Cash paid during the period for:
Interest $3,600,173 $3,838,893
Income taxes 0 1,204
Non cash investing activities:
Loans securitized into mortgage-backed securities $0 $0
=========== ==========
See notes to consolidated financial statements.
3
<PAGE> 6
SUBURBFED FINANCIAL CORP. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Note A - Statement of Information Furnished
The accompanying unaudited consolidated financial statements have been
prepared in accordance with Form 10-Q instructions and Article 10 of Regulation
S-X, and in the opinion of management contains all adjustments (all of which
are normal and recurring in nature) necessary to present fairly the financial
position as of March 31, 1997, the results of operations for the three months
ended March 31, 1997 and 1996 and cash flows for the three months ended March
31, 1997 and 1996. These results have been determined on the basis of
generally accepted accounting principles. The preparation of financial
statements in conformity with generally accepted accounting principles requires
management to make estimates and assumptions that affect the reported amounts
of assets and liabilities and disclosures of contingent assets and liabilities
at the date of the financial statements and the reported amounts of revenues
and expenses during the reporting period. Actual results could differ from
those estimates. The attached consolidated statements are those of SuburbFed
Financial Corp. (the "Company") and its consolidated subsidiaries Suburban
Federal Savings, a Federal Savings Bank (the "Bank"); the Bank's wholly owned
subsidiaries, Suburban Mortgage Services, Inc. and South Suburban Securities
Corporation; and the wholly owned subsidiary of South Suburban Securities
Corporation, Suburban Insurance Resources Agency, Inc. The results of
operations for the three month period ended March 31, 1997 is not necessarily
indicative of the results to be expected for the full year.
Note B - Stock Conversion
On September 12, 1991 the Board of Directors of Suburban Federal approved
a plan to convert from a federally chartered mutual association to a federally
chartered stock savings bank. The stock conversion plan included, as part of
the conversion, the concurrent formation of a holding company. The stock
offering of the Bank's parent, SuburbFed Financial Corp. (the "Company") was
closed on March 3, 1992 with the sale of 891,250 shares at $10.00 per share.
The Company purchased all the shares of stock of the Bank for $4,023,750 upon
completion of its stock offering.
Note C - Earnings Per Share
Earnings per share of common stock for the three month periods ended March
31, 1997 and 1996 have been determined by dividing net income for the period by
the weighted average number of shares of common stock and common stock
equivalents outstanding. Stock options are regarded as common stock
equivalents
4
<PAGE> 7
and are therefore considered in both the primary and fully diluted earnings per
share calculations. Common stock equivalents are computed using the treasury
stock method.
Note D - Dividend Declaration
The Company declared a dividend of $.08 per share, representing its
twentieth consecutive quarterly dividend payable April 15, 1997 to shareholders
of record April 1, 1997. The dividend, totaling $100,875, has been recorded as
of March 31, 1997 as a reduction of retained earnings in the accompanying
consolidated statements of financial condition.
5
<PAGE> 8
SUBURBFED FINANCIAL CORP.
AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
FINANCIAL CONDITION
During the three month period ended March 31, 1997, total assets
of the Company increased by $3.7 million. This increase in assets
was primarily funded by $16.4 million of deposit growth offset by
$13.2 million of repayment of borrowed money. Mortgage-backed
securities declined by $4.6 million while loans receivable grew
$8.0 million. The strategy of increasing loan originations, which
began in 1995, continued during the first quarter of 1997 and
will be pursued for the remainder of the year.
The 1997 increase in loans receivable was the result of loan
disbursements of $22.2 million offset by repayments of $12.5
million and the sale of $1.7 million of one to four family, fixed
rate loans to the Federal National Mortgage Association.
Comparable origination and repayment data for the three month
period ended March 31,1996 shows disbursements of $31.6 million
and repayments of $16.1 million.
Mortgage-backed securities ("MBS") held to maturity decreased $3.0
million during the most recent three month period due to
repayments. Pursuant to the Company's asset/liability management
strategy, the Company's portfolio contains MBS with adjustable
interest rates or short effective terms (2 to 5 year average
lives).
Mortgage-backed securities available for sale decreased $1.6
million during the most recent quarter due to repayments of $1.2
million and a market value adjustment of $356,000.
The level of savings deposits is affected primarily by interest
rates, the total amount of funds consumers elect to save, and
competition for savings from alternative investments in the
marketplace. Total savings deposit accounts increased $16.4
million from $309.6 million on December 31, 1996 to $326.0 million
on March 31, 1997. The Company experienced a net deposit inflow of
$13.2 million for the three month period ended March 31, 1997
(before interest credited), primarily in certificates of deposit
due to a promotion. The comparable data for the three month
period ended March 31,1996 was an inflow of $6.4 million (before
interest credited). Interest credited was $3.2 million and $2.9
million for the three months ended March 31, 1997 and 1996,
respectively.
6
<PAGE> 9
During 1997, the Company decreased Federal Home Loan Bank advances
by $10.0 million and other borrowed money by $3.2 million as
funding needs were met with deposit growth.
Stockholders' equity increased $515,000 during the three month
period ended March 31, 1997 due in part to earnings of $648,000
and $56,000 of proceeds from the sale of treasury stock to fund
shares purchased by employees under the Company's 401(K)
retirement plan offset by the increase in unrealized losses on
securities available for sale of $168,000 and dividends paid of
$101,000.
LIQUIDITY AND CAPITAL RESOURCES
The Company's principal sources of funds are deposits from
customers into interest bearing accounts, scheduled monthly
repayments and prepayments of principal and interest on loans and
mortgage-backed securities, and borrowings. Other potential
sources of funds available to the Company include borrowings from
the Federal Home Loan Bank of Chicago. While scheduled loan and
mortgage-backed security payments are relatively predictable
sources of funds, the actual mix and amounts of funds from these
sources are directly affected by general interest rates, economic
conditions and competition. The primary business activity of the
Company, that of making conventional mortgage loans on residential
housing, is likewise affected by economic conditions.
Current Office of Thrift Supervision regulations require the Bank
to maintain cash and eligible investments in an amount equal to at
least 5% of customer accounts and short-term borrowings to assure
its ability to meet demands for withdrawals and repayment of
short-term borrowings. The Bank's average daily liquidity ratio
for the three monthly periods ending March 31, 1997 ranged from
5.2% to 5.6%, and it was 5.9% at March 31, 1997. The Bank's
daily liquidity ratio at December 31, 1996 was 5.7%. Liquid assets
have been maintained at a level above regulatory minimums.
The Company uses its capital resources principally to meet its
ongoing commitments to fund maturing certificates of deposits and
deposit withdrawals, repay borrowings, fund existing and
continuing loan commitments, maintain its liquidity and meet
operating expenses. As of March 31, 1997, the Company had
approximately $14.8 million in outstanding commitments to
originate mortgage loans. The Company considers it liquidity and
capital resources to be adequate to meet its foreseeable short and
long-term needs. The Company expects to be able to fund or
refinance, on a timely basis, its material commitments and
long-term liabilities.
7
<PAGE> 10
On December 7, 1989, new capital standards were imposed on the thrift industry
as a result of the Financial Institutions Reform, Recovery and Enforcement Act
( "FIRREA"). Regulatory standards impose the following capital requirements:
a risk-based capital standard expressed as a percent of risk-adjusted assets, a
leverage ratio of core capital to total adjusted assets, and a tangible capital
ratio expressed as a percent of total adjusted assets. As of March 31, 1997,
the Bank exceeded all regulatory capital standards.
At March 31, 1997, the Bank's tangible capital was $24.0 million or
5.9% of adjusted total assets, which is in excess of the current 1.5%
requirement by $17.9 million. In addition, at March 31, 1997, the Bank had
core capital of $24.0 million or 5.9% of adjusted total assets, which exceeds
the current 3.0% requirement by $11.9 million. The Bank had risk-based capital
of $24.7 million at March 31, 1997, or 14.0% of risk-adjusted assets which
exceeds the 8.0% risk-based capital requirement by $10.6 million.
ANALYSIS OF OPERATIONS
Net income for the three month periods ended March 31, 1997 and 1996
were $648,000 and $418,000, respectively, representing a $230,000 increase
between the periods. This increase is primarily attributable to an increase
in net interest income of $363,000, or 14.8%, resulting from an increase of
$44.4 million in average earning assets and an increase of .06% in net interest
margin. Net interest margin increased from 2.79% for the three months ended
March 31, 1996 to 2.85% for the three months ended March 31, 1997.
Interest income on loans and mortgage-backed securities for the three month
period ended March 31, 1997 increased $979,000 from the same period in 1996.
This increase resulted primarily from the effect of the increase of $42.7
million in average loans and mortgage-backed securities.
Interest expense on deposits increased by $351,000 for the three month
period ended March 31, 1997 from the prior year level. The additional expense
resulted from the increase in the average cost of deposits from 4.43% for the
three month period ended March 31, 1996 to 4.51% for the 1996 period plus
the increased cost incurred from the increase in average deposit account
balances of $26.1 million for the three month period ended March 31, 1997 from
the prior year level.
Interest expense on borrowed money increased $264,000 for the quarter ended
March 31, 1997 from the same period in 1996.
This increase is primarily attributable to an increase of $17.5 million in the
average outstanding balance of borrowed money for the three month period ended
March 31, 1997 as compared to the same period in 1996.
8
<PAGE> 11
Management establishes specific reserves for estimated losses on loans when it
determines that losses are anticipated on these loans. The Company calculates
any allowance for possible loan losses based upon its ongoing evaluation of
pertinent factors underlying the types and quality of its loans. These factors
include but are not limited to current and anticipated economic conditions,
historical loan loss experience, a detailed analysis of individual loans for
which full collectability may not be assured, a determination of the existence
and realizable value of the underlying collateral, the ability of the borrower
to repay and the guarantees securing such loans. Management, as a result of
this review process, recorded provisions for loan losses in the amount of
$45,000 for the three month period ended March 31, 1997 as compared to $46,000
for the three month period ended March 31, 1996. During the quarter ended March
31,1997, the Company received a final settlement from the bankruptcy trustee
for a development loan that had a balance of $498,000. Settlement of this loan
has resulted in a $182,000 charge-off which the Company had previously
considered in determining the level of loan loss allowance. Recoveries of
$145,000 from the settlement of other related lawsuits in connection with this
loan have been recorded in prior periods as increases to the loan loss
allowance. The Company's remaining nonaccrual loans are mortgages secured by 1
to 4 family properties or consumer loans.
The Company's general loan loss reserve balance as of March 31, 1997 was
$816,000. The December 31, 1996 general loan loss reserve balance was
$967,000. Including the charge-off mentioned above, net charge-offs for the
1997 period were $196,000 as compared to $3,000 in 1996. Total nonperforming
assets as of March 31, 1997 were $1,004,000 or 0.25% of total assets.
Loan fees and service charges decreased $28,000 due to a decrease in loan
disbursements of $9.4 million during the three month period ended March 31,
1997, as compared to the same period in 1996. Deposit-related fees and other
income for the three month period ended March 31, 1997 increased $2,000 from
the 1996 period primarily as a result of the periodic review and adjustment of
deposit fees. Commission income for the three months ended March 31, 1997 from
the sale of insurance products and mutual funds increased $6,000, from the
comparable 1996 period, as sales volumes increased. Gains on sale of loans and
securities were $107,000 for the three month period ended March 31, 1997 as
compared to $91,000 for the comparable 1996 period.
Total general and administrative expense increased $12,000 during the
three month period ended March 31, 1997, primarily as a result of increased
staffing costs of $125,000
9
<PAGE> 12
consisting primarily of additional employee incentive compensation, offset by
a reduction of $113,000 in federal insurance premiums which was the result of
legislation enacted in September 1996 to recapitalize the Savings Insurance
Fund. The legislation allowed highly rated institutions, such as the Bank, to
pay substantially reduced deposit premiums beginning January 1, 1997. The
annual premium rate dropped from 23 cents to 6.4 cents per $100 of insured
deposits.
The provision for income taxes for the three month period ended March 31,1997
increased from the comparable 1996 period due to increased earnings.
10
<PAGE> 13
IMPACT OF THE NEW ACCOUNTING STANDARDS
ACCOUNTING FOR TRANSFERS AND SERVICING OF FINANCIAL ASSETS AND EXTINGUISHMENTS
OF LIABILITIES. In June 1996, the FASB issued SFAS No. 125 ("SFAS 125"),
"Accounting for Transfers and Servicing of Financial Assets and Extinguishments
of Liabilities." This statement, among other things, applies a
"financial-components approach" that focuses on control, whereby an entity
recognizes the financial and servicing assets it controls and the liabilities
it has incurred, derecognizes assets when control has been surrendered, and
derecognizes liabilities when extinguished. SFAS 125 provides consistent
standards for distinguishing transfers of financial assets that are sales from
transfers that are secured borrowings. SFAS 125 is effective for transfers and
servicing of financial assets and extinguishments of liabilities occurring
after December 31, 1996. The Company has adopted SFAS 125 effective January 1,
1997, resulting in no material impact on its consolidated financial condition
or results of operations.
ACCOUNTING FOR TRANSFERS AND SERVICING OF FINANCIAL ASSETS AND EXTINGUISHMENTS
OF LIABILITIES. In December 1996, the FASB issued Statement of Financial
Accounting Standards No. 127 ("SFAS 127"), "Deferral of the Effective Date of
Certain Provisions of FASB Statement No. 125". The statement delays for one
year the implementation of SFAS 125, as it relates to (1) secured borrowings
and collateral, and (2) for the transfers of financial assets that are part of
repurchase agreement, dollar-roll, securities lending and similar transactions.
The Company has adopted portions of SFAS 125 (those not deferred by SFAS 127)
effective January 1, 1997. Adoption of these portions did not have a
significant effect on the Company's financial condition or results of
operations. Based on its review of SFAS 125, management does not believe that
adoption of the portions of SFAS 125 which have been deferred by SFAS 127 will
have a material effect on the Company.
ACCOUNTING FOR EARNINGS PER SHARE. In February 1997, the FASB issued SFAS No.
128 ("SFAS 128"), "Earnings Per Share". This statement is intended to simplify
the computation of earnings per share ("EPS") by replacing the presentation of
primary EPS with a presentation of basic EPS. Basic EPS does not include
potential dilution and is computed by dividing income available to common
stockholders by an average number of common shares outstanding.
Diluted EPS reflects the potential dilution of securities that could share in
the earnings of a company, similar to the fully diluted EPS currently used.
The statement requires dual presentation of basic and diluted EPS by companies
with
11
<PAGE> 14
complex capital structures. SFAS 128 is effective for financial statements
issued for periods ending after December 15, 1997. The Company does not
anticipate that this statement will have an impact on its consolidated
financial condition or results of operations.
The foregoing does not constitute a comprehensive summary of all
material changes or developments affecting the manner in which the Company
keeps its books and records and performs its financial accounting
responsibilities. It is intended only as a summary of some of the recent
pronouncements made by the FASB which are of particular interest to financial
institutions.
Stock Repurchase Program
On October 24, 1995, the Company announced that its Board of Directors had
authorized a second stock repurchase program which allows the Company to
repurchase up to 4.9% (62,925 shares) of the common stock outstanding in open
market transactions. As of May 8, 1997, the Company had purchased 43,907
shares.
12
<PAGE> 15
SUBURBFED FINANCIAL CORP.
PART II OTHER INFORMATION
Item 1. Legal Proceedings
From time to time, the Bank is a party to legal proceedings in
the ordinary course of business, wherein it enforces its
security interest. The Company and the Bank are not engaged in
any legal proceedings of a material nature at the present time.
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
None
Item 5. Other Information
None
Item 6. Exhibits and Reports on Form 8-K
(a)(1) Computation of Earnings Per Share (Exhibit 11
filed herewith.)
(a)(2) Financial Data Schedule (Exhibit 27 filed
herewith.)
(b) Not applicable
13
<PAGE> 16
SIGNATURES
Pursuant to the requirements of Section 13 or 15 (d) of the Securities
and Exchange Act of 1934, The Registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
SUBURBFED FINANCIAL CORP
------------------------
Registrant
DATE: May 8, 1997 BY: (s)______________________________
Daniel P. Ryan
President and
Chief Executive Officer
DATE: May 8, 1997 BY: (s)______________________________
Steven E. Stock
Senior Vice President
Chief Financial and
Accounting Officer
<PAGE> 1
EXHIBIT 11
STATEMENT REGARDING COMPUTATION OF EARNINGS PER SHARE
Three Months
Ended
March 31, 1997
______________
Net Income $647,844
========
Weighted average
shares outstanding 1,256,928
Common stock
equivalents due to dilutive
effect of stock options 66,765
---------
Total weighted average
common shares
and equivalents
outstanding 1,323,693
==========
Primary earnings
per share $.49
====
Total weighted average
common shares and
equivalents outstanding
for primary computation 1,323,693
Additional dilutive
shares using the end of
period market value versus
the average market value
when applying the treasury
stock method 3,500*
---------
Total weighted average
common shares and
equivalents outstanding for
fully diluted
computation 1,327,193
==========
Fully diluted
earnings per share $.49
====
*Note: If the average share price is greater than the ending price, use
average price for both primary and fully diluted calculation.
<TABLE> <S> <C>
<ARTICLE> 9
<LEGEND>
The schedule contains summary financial information extracted
from the Form 10-Q for the quarter ended March 31, 1997 and is
qualified in its entirety by reference to such financial
statements.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> MAR-31-1997
<CASH> 2,677,449
<INT-BEARING-DEPOSITS> 5,549,273
<FED-FUNDS-SOLD> 0
<TRADING-ASSETS> 1,315,774
<INVESTMENTS-HELD-FOR-SALE> 41,843,168
<INVESTMENTS-CARRYING> 95,473,528
<INVESTMENTS-MARKET> 94,782,843
<LOANS> 250,588,925
<ALLOWANCE> 816,415
<TOTAL-ASSETS> 407,800,094
<DEPOSITS> 325,973,731
<SHORT-TERM> 18,711,000
<LIABILITIES-OTHER> 5,346,853
<LONG-TERM> 31,000,000
0
0
<COMMON> 13,686
<OTHER-SE> 26,754,824
<TOTAL-LIABILITIES-AND-EQUITY> 407,800,094
<INTEREST-LOAN> 4,748,011
<INTEREST-INVEST> 2,453,013
<INTEREST-OTHER> 0
<INTEREST-TOTAL> 7,201,024
<INTEREST-DEPOSIT> 3,608,399
<INTEREST-EXPENSE> 4,384,133
<INTEREST-INCOME-NET> 2,816,891
<LOAN-LOSSES> 45,000
<SECURITIES-GAINS> 106,705
<EXPENSE-OTHER> 2,529,261
<INCOME-PRETAX> 1,003,544
<INCOME-PRE-EXTRAORDINARY> 647,844
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 647,844
<EPS-PRIMARY> .49
<EPS-DILUTED> .49
<YIELD-ACTUAL> 2.85
<LOANS-NON> 1,004,000
<LOANS-PAST> 77,000
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 967,360
<CHARGE-OFFS> 199,301
<RECOVERIES> 3,356
<ALLOWANCE-CLOSE> 816,415
<ALLOWANCE-DOMESTIC> 140,385
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 676,030
</TABLE>
