FORM 10-QSB
U.S. Securities and Exchange Commission
Washington, D.C. 20549
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended December 31, 1996
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT
For the transition period from ______ to ______
Commission File No. 0-20380
FIRST FEDERAL BANCORP, INC.
-----------------------------------------------------------------
(Exact name of small business issuer as specified in its charter)
Ohio 31-1341110
------------------------------- ----------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
505 Market Street
Zanesville, Ohio 43701
----------------- -----
(Address of principal (Zip Code)
executive office)
Registrant's telephone number, including area code: (614) 453-0606
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
----- -----
As of January 31, 1997, the latest practicable date, 1,571,716 shares
of the registrant's common stock, no par value, were issued and outstanding.
Page 1 of 13 Pages
FIRST FEDERAL BANCORP, INC.
INDEX
-----
PART I FINANCIAL INFORMATION PAGE
----
Consolidated Statements of Financial Condition 3
Consolidated Statements of Income 4
Consolidated Statements of Cash Flows 5
Notes to Consolidated Financial Statements 6
Management's Discussion and Analysis of
Financial Condition and Results of Operations 8
PART II OTHER INFORMATION 12
SIGNATURES 13
PART I
------
FINANCIAL INFORMATION
---------------------
First Federal Bancorp, Inc.
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
<TABLE>
<CAPTION>
At Dec. 31 At September 30
1996 1996
---- ----
<S> <C> <C>
ASSETS
Cash and amounts due from depository institutions $ 5,669,276 $ 4,986,988
Overnight deposits 3,350,000 3,175,000
----------------------------
Cash and cash equivalents $ 9,019,276 $ 8,161,988
Investment securities held to maturity (Fair
value - $4,539,000 in 12/96 and $4,546,000 in 9/96) 4,540,684 4,548,069
Mortgage-backed securities held to maturity (Fair
value - $1,603,000 in 12/96 and $1,658,000 in 9/96) 1,590,712 1,661,018
Loans receivable, net 163,148,011 160,297,702
Premises and equipment, net 7,116,276 6,553,874
Accrued interest receivable and other assets 3,649,682 3,244,605
----------------------------
Total Assets $189,064,641 $184,467,256
============================
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Deposits $126,315,404 $130,071,616
Borrowed funds 46,670,000 37,970,000
Advances from borrowers for taxes and insurance 593,013 540,734
Accrued expenses and other liabilities 1,149,418 1,887,057
----------------------------
Total Liabilities $174,727,835 $170,469,407
----------------------------
Stockholders' Equity
Preferred stock, $100 par value, 1,000,000 shares
authorized, no shares issued and outstanding
Common stock, no par value, 4,000,000 shares
authorized, 1,653,300 shares issued $ 3,656,323 $ 3,656,323
Retained earnings 11,205,378 10,876,921
Treasury shares, 81,584 shares (524,895) (535,395)
----------------------------
Total Stockholders' Equity $ 14,336,806 $ 13,997,849
----------------------------
Total Liabilities and Stockholders' Equity $189,064,641 $184,467,256
============================
</TABLE>
See Notes to the Consolidated Financial Statements.
First Federal Bancorp, Inc.
CONSOLIDATED STATEMENTS OF INCOME
<TABLE>
<CAPTION>
Three Months Ended
December 31
------------------------
1996 1995
---- ----
<S> <C> <C>
INTEREST INCOME
Interest and fees on loans $3,432,804 $3,217,021
Interest on mortgage-backed securities 30,199 32,321
Interest on investment securities 63,942 70,622
Interest on other interest earning investments 42,542 33,501
------------------------
Total Interest Income 3,569,487 3,353,465
------------------------
INTEREST EXPENSE
Interest on deposits 1,297,536 1,374,310
Interest on borrowed money 599,884 421,398
------------------------
Total Interest Expense 1,897,420 1,795,708
------------------------
Net Interest Income 1,672,067 1,557,757
------------------------
Provision for Loan Losses 147,663 43,898
Net Interest Income After Provision for Loan Losses 1,524,404 1,513,859
------------------------
NONINTEREST INCOME
Service charges on deposit accounts 75,848 78,746
Gain on sale of loans 15,360 14,131
Dividends on FHLB stock 37,624 28,842
Other operating income 103,131 99,578
------------------------
Total Noninterest Income 231,963 221,297
------------------------
NONINTEREST EXPENSE
Salaries and employee benefits 457,092 484,704
Occupancy and equipment expense 172,676 118,007
Deposit insurance expense 87,602 83,928
Data processing expense 79,092 69,730
Advertising 57,614 40,403
Ohio franchise taxes 44,938 41,828
Other operating expenses 224,460 202,434
------------------------
Total Noninterest Expenses 1,123,474 1,041,034
------------------------
Income Before Income Taxes 632,893 694,122
------------------------
Provision for Income Taxes 208,935 228,794
------------------------
Net Income $ 423,958 $ 465,328
========================
EARNINGS PER COMMON & COMMON
EQUIVALENT SHARES
Primary $ .25 $ .28
------------------------
Fully diluted $ .25 $ .28
------------------------
WEIGHTED AVERAGE COMMON AND
COMMON EQUIVALENT SHARES
Primary 1,705,616 1,678,090
------------------------
Fully diluted 1,713,068 1,686,907
------------------------
DIVIDENDS DECLARED PER SHARE $ .06 $ .05
------------------------
</TABLE>
First Federal Bancorp, Inc.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
<TABLE>
<CAPTION>
Three Months Ended
December 31
--------------------------
1996 1995
CASH FLOWS FROM OPERATING ACTIVITIES: ---- ----
<S> <C> <C>
Net Income $ 423,958 $ 465,328
Adjustments to reconcile net income to net cash
provided by operating activities:
Provision for loan losses 147,663 43,898
Depreciation 92,983 50,835
Federal Home Loan Bank stock dividends (37,600) (28,800)
Amortization of net premiums (discounts) on investment securities (32,124) 8,694
Mortgage loans originated for sale (1,234,585) (803,450)
Proceeds from sale of mortgage loans 1,241,977 803,450
Change in other assets and other liabilities (663,916) 124,445
--------------------------
Net Cash Provided by Operating Activities (61,644) 664,400
--------------------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from maturities of investment securities 1,499,956 254,675
Purchases of investment securities/FHLB stock (1,901,647) -
Loans originated, net of principal repayments (3,013,309) (411,022)
Principal collected on mortgage-backed securities 70,306 46,479
Purchases of premises and equipment (655,386) (794,462)
--------------------------
Net Cash Used for Investing Activities (4,000,080) (904,330)
--------------------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Net change in deposit accounts (3,756,212) 553,106
Net change in advance payments by borrowers for taxes and insurance 52,280 354,177
Net change in borrowed funds with original maturities of less
than three months 8,700,000 835,000
Dividends paid (86,356) (78,456)
Proceeds from exercise of options 9,300 -
--------------------------
Net Cash Provided by Financing Activities 4,919,012 1,663,827
--------------------------
NET CHANGE IN CASH AND CASH EQUIVALENTS 857,288 1,423,897
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 8,161,988 6,335,583
--------------------------
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 9,019,276 $ 7,759,480
==========================
</TABLE>
FIRST FEDERAL BANCORP, INC.
Notes to Consolidated Financial Statements
1. Basis of Presentation
---------------------
The accompanying unaudited Consolidated Financial Statements have been
prepared in accordance with generally accepted accounting principles for
interim financial information and the instructions to Form 10-QSB. The Form
10-QSB does not include all the information and footnotes required by
generally accepted accounting principles for complete financial statements.
Only material changes in financial condition and results of operations are
discussed in Management's Discussion and Analysis of Financial Condition and
Results of Operations.
In the opinion of management, the condensed Consolidated Financial
Statements contain all adjustments necessary to present fairly the financial
condition of First Federal Bancorp, Inc. ("Bancorp"), as of December 31,
1996, and September 30, 1996, and the results of its operations for the
three months ended December 31, 1996, and 1995, and its cash flow for the
three months ended December, 1996 and 1995. The results of operations for
the interim periods reported herein are not necessarily indicative of
results of operations to be expected for the entire year.
2. Commitments
-----------
Outstanding commitments to originate mortgage loans and to sell mortgage
loans were $1,298,555 and $133,109 respectively, at December 31, 1996.
3. Earnings and Dividends Per Common Share
---------------------------------------
Earnings per share (EPS) is based upon the weighted average number of shares
of common stock and common stock equivalents outstanding during the period.
The common stock equivalents that result from the outstanding stock options
granted are based on the average market price of the Company's stock for
primary EPS and on the ending market price for the fully diluted EPS. On
November 6, 1996, and on October 26, 1994, the Board of Directors declared
two-for-one stock splits in the form of 100% stock dividends. All earnings
and dividends per share disclosures have been restated to reflect these
stock splits.
4. Allowance for Losses on Loans
-----------------------------
Because some loans may not be repaid in full, an allowance for loan losses
is recorded. Increases to the allowance are recorded by a provision for
loan losses charged to expense. Estimating the risk of loss and the amount
of loss on any loan is necessarily subjective. Accordingly, the allowance
is maintained by management at a level considered adequate to cover possible
losses that are currently anticipated based on past loss experience, general
economic conditions, information about specific borrower situations,
including their financial position and collateral values, and other factors
and estimates which are subject to change over time. While management may
periodically allocate portions of the allowance for specific problem loan
situations, the whole allowance is available for any loan charge-offs that
occur. A loan is charged-off by management as a loss when deemed
uncollectible, although collection efforts continue and future recoveries
may occur.
Statement of Financial Accounting Standards ("SFAS") No. 114, "Accounting by
Creditors for Impairment of a Loan," as amended by SFAS No. 118, became
effective October 1, 1995, and requires recognition of loan impairment.
Loans are considered impaired if full principal or interest payments are not
anticipated. Impaired loans are carried at the present value of expected
cash flows discounted at the loan's effective interest rate or at the fair
value of the collateral if the loan is collateral dependent. A portion of
the allowance for loan losses is allocated to impaired loans.
Smaller-balance, homogeneous loans are evaluated for impairment in total.
Such loans include residential first mortgage loans secured by one- to four-
family residences, residential construction loans, and automobile, home
equity and second mortgage loans. Mortgage loans secured by other
properties are evaluated individually for impairment. When analysis of
borrower operating results and financial condition indicates that underlying
cash flows of the borrower's business are not adequate to meet its debt
service requirements, the loan is evaluated for impairment. Loans are
generally moved to nonaccrual status when 90 days or more past due. These
loans are often also considered impaired. Impaired loans, or portions
thereof, are charged off when deemed uncollectible. The nature of
disclosures for impaired loans is considered generally comparable to prior
nonaccrual and renegotiated loans and nonperforming and past-due asset
disclosures. The Savings Bank had no loans meeting the definition of
impaired during the quarter ended December 31, 1996.
5. Interest Income on Loans
------------------------
Interest on loans is accrued over the term of the loans based upon the
principal outstanding. Management reviews loans delinquent 90 days or more
to determine if the interest accrual should be discontinued. The carrying
value of impaired loans reflects cash payments, revised estimates of future
cash flows, and increases in the present value of expected cash flows due to
the passage of time. Cash payments representing interest income are
reported as such and other cash payments are reported as reductions in
carrying value. Increases or decreases in carrying value due to changes in
estimates of future payments or the passage of time are reported as
reductions or increases in bad debt expense.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
General
- -------
First Federal Bancorp, Inc. ("Bancorp"), is a savings and loan holding
company that wholly owns First Federal Savings Bank of Eastern Ohio (the
"Savings Bank"). The Savings Bank is engaged in the savings and loan
business primarily in Central and Eastern Ohio. The Savings Bank is a
member of the Federal Home Loan Bank ("FHLB") of Cincinnati, and the
accounts in the Savings Bank are insured up to the applicable limits by the
Federal Deposit Insurance Corporation in the Savings Association Insurance
Fund ("SAIF").
Note Regarding Forward-Looking Statements
- -----------------------------------------
In addition to historical information contained herein, the following
discussion contains forward-looking statements that involve risks and
uncertainties. Economic circumstances, First Federal's operations and First
Federal's actual results could differ significantly from those discussed in
the forward-looking statements. Some of the factors that could cause or
contribute to such differences are discussed herein but also include changes
in the economy and interest rates in the nation and First Federal's market
area generally. See Exhibit 99 hereto, which is incorporated herein by
reference.
Some of the forward-looking statements included herein are the statements
regarding the following:
1. Management's determination of the amount of loan loss allowance;
2. Management's belief that deposits will grow slightly during fiscal year
1997;
3. Management's anticipation that loan demand will remain steady;
4. Management's anticipation that adjustable-rate loans will reprice higher
in fiscal year 1997;
5. Changes in deposit insurance assessments; and
6. Legislative changes with respect to the federal thrift charter.
Changes in Financial Condition from September 30, 1996, to December 31, 1996
- ----------------------------------------------------------------------------
Total consolidated assets of Bancorp increased by $4.6 million, or 2.49%,
from $184.5 million at September 30, 1996, to $189.1 million at December 31,
1996. The increase is due primarily to an increase in loans receivable of
$2.9 million, a $500,000 increase in FHLB stock, and a $600,000 increase in
premises and equipment due to the $4.0 million renovation and construction
project at the Main Office, which was completed in November 1996.
Total liquidity (consisting of cash and amounts due from depository
institutions, interest-bearing deposits in other banks, and investment
securities) was $5.7 million at December 31, 1996, which is an increase of
$700,000 from September 30, 1996. The regulatory liquidity of the Savings
Bank was 5.99% at December 31, 1996, which was in excess of the minimum
regulatory requirement of 5%. Funds are available through FHLB advances to
meet the Savings Bank's liquidity requirement if necessary.
The loans receivable balance increased $2.9 million for the three-month
period as the anticipated steady mortgage and consumer loan volume in the
Savings Bank's market area continued.
As of December 31, 1996, the Savings Bank had borrowed funds from the FHLB
in the amount of $46.7 million at a weighted average rate of 5.80%. FHLB
advances increased $8.7 million, or 22.89%, from $38 million at September
30, 1996. Deposits decreased by $3.8 million, or 2.88%, from $130.1 million
at September 30, 1996, to $126.3 million at December 31, 1996. Management
believes that the Savings Bank will experience a slight increase in deposits
during the current fiscal year in spite of the decrease during the first
quarter. As the result of the decrease in the SAIF premium cost, the
Savings Bank can afford to pay depositors a slightly higher rate while
managing the cost of funds. FHLB advances have increased in cost compared
to deposits of a similar term. The Savings Bank therefore plans to become
more aggressive in promoting deposit products. No assurance can be
provided, however, that deposits will grow. Deposit levels are affected by
national, as well as local, interest rates and other national and local
economic circumstances.
The Savings Bank is subject to regulatory capital requirements established
by the Office of Thrift Supervision ("OTS"). The Savings Bank's capital
ratios were as follows at December 31, 1996.
<TABLE>
<CAPTION>
Amount Percent of
(In Thousands) Assets
-------------- ----------
<S> <C> <C>
Actual Tangible Capital $12,830 6.81%
Required Tangible Capital 2,826 1.50%
---------------------
Excess Tangible Capital $10,004 5.31%
Actual Core Capital $12,830 6.81%
Required Core Capital 5,652 3.00%
---------------------
Excess Core Capital $ 7,178 3.81%
Actual Risk Based Capital $14,105 11.54%
Required Risk Based Capital 9,775 8.00%
---------------------
Excess Risk Based Capital $ 4,330 3.54%
</TABLE>
Management is not aware of any proposed regulations or recommendations by
the OTS that, if implemented, would have a material effect upon the Savings
Bank's capital.
The deposits of First Federal and other savings associations are insured by
the FDIC in the SAIF. The deposit accounts of commercial banks are insured
by the FDIC in the Bank Insurance Fund (the "BIF"), except to the extent
such banks have acquired SAIF deposits.
Legislation to recapitalize the SAIF and to eliminate the significant
premium disparity between the BIF and the SAIF became effective September
30, 1996. Pursuant to the recapitalization plan, First Federal paid, on
November 27, 1996, an additional pre-tax assessment of $800,100. Such
payment was recorded as an expense and accounted for by First Federal as of
September 30, 1996. Earnings and capital were, therefore, negatively
affected for the quarter ended September 30, 1996, by an after-tax amount of
approximately $528,000.
The recapitalization plan also provides that the cost of prior thrift
failures will be shared by both the SAIF and the BIF, which will increase
BIF assessments for healthy banks to approximately $.013 per $100 of
deposits in 1997. SAIF assessments for healthy savings associations in 1997
will be approximately $.064 per $100 in deposits and may never be reduced
below the level set for healthy BIF institutions.
The recapitalization plan also provides for the merger of the SAIF and the
BIF effective January 1, 1999, assuming there are no savings associations
under federal law. Under separate proposed legislation, Congress is
considering the elimination of the federal thrift charter and the separate
federal regulation of thrifts. As a result, First Federal would have to
convert to a different financial institution charter and would be regulated
under federal law as a bank, including being subject to the more restrictive
activity limitations imposed on national banks.
In addition, Bancorp might become subject to more restrictive holding
company requirements, including activity limits and capital requirements
similar to those imposed on First Federal. Bancorp cannot predict the
impact of the conversion of First Federal to, or regulation of First Federal
as, a bank until the legislation requiring such change is enacted.
In August 1996, Congress passed legislation repealing the reserve method of
accounting used by many thrifts to calculate their bad debt reserve for
federal income tax purposes and requiring any bad debt reserves taken after
1987, using the percentage of taxable income method, be included in future
taxable income of the association over a six-year period. A two-year delay
is permitted for institutions meeting a residential mortgage loan
origination test. At September 30, 1996, First Federal had approximately
$1.1 million in bad debt reserves subject to recapture for federal income
tax purposes. The deferred tax liability related to the recapture was
established in prior years, so First Federal's net income will not be
negatively affected by this legislation.
Comparison of Operating Results for the Three-Month
- ---------------------------------------------------
Periods Ended December 31, 1996, and 1995
- -----------------------------------------
Net interest income before provision for loan losses increased $114,000 for
the three-month period. The net increase is a result of the increases in
total interest income exceeding increases in total interest expense. Total
interest income increased by $216,000 for the three-month period ended
December 31, 1996, compared to the same period in 1995. The increases are
primarily due to an increase in the interest rate earned on mortgage loans
and an increase in loans receivable as the result of the stable loan market.
The majority of the loans in the Savings Bank's portfolio are adjustable-
rate mortgage loans whose interest rates fluctuate with market interest
rates.
Interest expense increased by $102,000 for the three-month period ended
December 31, 1996, as the result of increases in interest rates of savings
deposits at First Federal and in the borrowings at the Federal Home Loan
Bank. It is anticipated that interest rates will remain relatively stable
during the remaining fiscal year 1997, and that the adjustable-rate mortgage
loan portfolio will reprice at slightly higher rates because most loans
originated during fiscal year 1996 were not initially priced at the fully-
indexed interest rate and will be repricing upward at their first adjustment
and because the balance of the adjustable-rate mortgage loan portfolio will
not reprice substantially lower during 1997. No assurance can be provided,
however, that interest rates will remain stable. Interest rates are
affected by general local and national economic conditions, the policies of
various regulatory authorities and other factors beyond the control of
Bancorp.
Nonperforming and Delinquent Loans and Allowance for Loan Losses
- ----------------------------------------------------------------
Total nonaccrual loans and accruing loans that are 90 days past due were
$718,000 at December 31, 1996, which represents .44% of total loans. This
was an increase of $226,000 from December 31, 1995.
There were no loans that are not currently classified as nonaccrual, 90 days
past due or restructured but which may be so classified in the near future
because management has concerns as to the ability of the borrowers to comply
with repayment terms.
The Savings Bank maintains an allowance for losses on loans and on real
estate owned. The allowance for losses on loans and on real estate owned
was $1,723,000 at December 31, 1996, compared to $1,545,000 at December 31,
1995. During the three-month period ended December 31, 1996, the Savings
Bank recorded no recoveries, compared to net recoveries of $2,000 during the
same period of 1995. The provisions for loan losses during the three-month
periods ended December 31, 1996, and 1995, were $148,000 and $44,000
respectively.
The Savings Bank classified no loans meeting the definition of impaired
during the quarter ended December 31, 1996.
The Savings Bank reviews on a monthly basis the allowance for loan losses.
The review of loans to determine the appropriate loan loss provision
includes consideration of relevant factors, including, but not limited to,
trends in the level of nonperforming assets and classified loans, current
and anticipated economic conditions in the primary lending area, past loss
experience and possible losses arising from specific problem assets. To a
lesser extent, management also considers loan concentrations to single
borrowers and changes in the composition of the loan portfolio. While
management believes that it uses the best information available to determine
the appropriate allowance for loan losses, unforeseen market conditions
could result in adjustments, and net earnings could be significantly
affected if circumstances differ substantially from the assumptions used in
making the final determination.
Noninterest Income and Expense
- ------------------------------
The federal income tax provision decreased $20,000 for the three-month
period ended December 31, 1996, compared to the same period in 1995, due to
lower net income for the period.
Total noninterest income increased $11,000 for the three-month period ended
December 31, 1996, compared to the same period in 1995. Dividends on FHLB
stock increased $9,000 due to an increase in FHLB stock held.
Total noninterest expenses increased $82,000 for the quarter ended December
31, 1996, compared to the same period in 1995. Salaries and benefits
decreased $28,000 due to the absence of a need to establish an increase in
accruals for sick pay earned of $10,000 as was needed in the comparative
three-month period and a decrease of $8,000 in retirement plan costs. The
data processing expense increased $9,000 for the comparative three-month
period due to increased use of the service bureau products. Occupancy
expenses increased $55,000 for the quarter ended December 31, 1996, due to
increased depreciation of $40,000 as a result of the completion of the Main
Office construction project. Utilities also increased $3,400 and repairs
and maintenance to other offices increased $11,500.
Advertising increased $17,000 for the quarter ended December 31, 1996,
compared to the quarter ended December 31, 1995, due to the promotion of the
new Main Office construction.
Impact of New Accounting Standards
- ----------------------------------
In May 1995, the FASB issued its SFAS No. 122, "Accounting for Mortgage
Servicing Rights," which requires companies that engage in mortgage banking
activities to recognize as separate assets rights to service mortgage loans
for others. This Statement was adopted by First Federal on October 1, 1996,
and will be applied prospectively to rights arising from loans sold by First
Federal after adoption of the Statement. The adoption of SFAS No. 122 did
not have a significant impact on First Federal's financial statements.
On October 1, 1996, First Federal adopted SFAS No. 123 "Accounting for
Stock-Based Compensation." SFAS No. 123 encourages but does not require
entities to use a fair value based method to account for stock-based
compensation plans such as the First Federal stock option plans. If the
fair value accounting encouraged by SFAS No. 123 is not adopted, entities
must disclose the pro forma effect on net income and earnings per share had
the accounting been adopted. Fair value of a stock option is to be
estimated using an option-pricing model that considers exercise price,
expected life of the option, current price of the stock, expected price
volatility, expected dividends on the stock, and the risk-free interest
rate. First Federal will disclose the pro forma impact of this
pronouncement in 1997.
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
-----------------
Not applicable
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
--------------------------------
Exhibit 27: Financial Data Schedule
Exhibit 99: Safe Harbor Under the Private Securities Litigation
Reform Act of 1995 (Incorporated by reference to
Exhibit 99.2 to the Annual Report on Form 10-KSB filed
by the Registrant on December 27, 1996.)
No reports on Form 8-K were filed during the quarter for which this
report is filed.
SIGNATURES
----------
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
Date: February 14, 1997 By: /s/ J. William Plummer
J. William Plummer
President
Date: February 14, 1997 By: /s/ Connie Ayres LaPlante
Connie Ayres LaPlante
Chief Financial Officer
<TABLE> <S> <C>
<ARTICLE> 9
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
CONSOLIDATED BALANCE SHEET AND THE CONSOLIDATED STATEMENT OF INCOME FILED AS
PART OF THE QUARTERLY REPORT ON FORM 10-QSB AND IS QUALIFIED IN ITS ENTIRETY BY
REFERENCE TO SUCH QUARTERLY REPORT ON FORM 10-QSB.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> SEP-30-1997
<PERIOD-START> OCT-01-1996
<PERIOD-END> DEC-31-1996
<CASH> 5,669
<INT-BEARING-DEPOSITS> 0
<FED-FUNDS-SOLD> 3,350
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 0
<INVESTMENTS-CARRYING> 6,131
<INVESTMENTS-MARKET> 6,142
<LOANS> 163,148
<ALLOWANCE> 1,723
<TOTAL-ASSETS> 189,065
<DEPOSITS> 126,315
<SHORT-TERM> 33,670
<LIABILITIES-OTHER> 1,742
<LONG-TERM> 13,000
0
0
<COMMON> 3,656
<OTHER-SE> 10,680
<TOTAL-LIABILITIES-AND-EQUITY> 189,065
<INTEREST-LOAN> 3,433
<INTEREST-INVEST> 93
<INTEREST-OTHER> 43
<INTEREST-TOTAL> 3,569
<INTEREST-DEPOSIT> 1,297
<INTEREST-EXPENSE> 600
<INTEREST-INCOME-NET> 1,672
<LOAN-LOSSES> 148
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 1,123
<INCOME-PRETAX> 633
<INCOME-PRE-EXTRAORDINARY> 424
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 424
<EPS-PRIMARY> .25
<EPS-DILUTED> .25
<YIELD-ACTUAL> 3.86
<LOANS-NON> 607
<LOANS-PAST> 111
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 1,611
<CHARGE-OFFS> 36
<RECOVERIES> 0
<ALLOWANCE-CLOSE> 1,723
<ALLOWANCE-DOMESTIC> 1,273
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 450
</TABLE>
