SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
-----------------------------------------
FORM 10-QSB
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended June 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
--------------------- ----------------------
SEC File Number 0-23194
First Savings Bancorp of Little Falls, Inc.
------------------------------------------------------
(Exact name of registrant as specified in its charter)
New Jersey 22-3360945
- --------------------------------------------------------------------------------
(State or other jurisdiction) (I.R.S. Employer Identification No.)
Registrant's telephone number, including area code (973) 256-2100
--------------
- ---------------------------------------------------------------------
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 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
------- -------
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: 440,100.
<PAGE>
FIRST SAVINGS BANCORP OF LITTLE FALLS, INC.
-------------------------------------------
INDEX
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Page
----
Number
- ------
PART I - CONSOLIDATED FINANCIAL INFORMATION
Consolidated Statements of Financial
Condition at June 30, 1998
and December 31, 1997 (unaudited) 1
Consolidated Statements of Income
and Comprehensive Income
for the Three and Six Months Ended
June 30, 1998 and 1997 (unaudited) 2
Consolidated Statements of Cash Flows
of the Six Months Ended
June 30, 1998 and 1997 (unaudited) 3-4
Notes to Consolidated Financial Statements 5
Management's Discussion and Analysis of
Financial Condition and Results of Operations 6-10
PART II - OTHER INFORMATION 11
SIGNATURES 12
<PAGE>
FIRST SAVINGS BANCORP OF LITTLE FALLS, INC
AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(UNAUDITED)
<TABLE>
<CAPTION>
June 30, 1998 December 31, 1997
---------------- -----------------
<S> <C> <C>
Assets
- ------
Cash and amounts due from
depository institutions $1,895,442 $2,142,413
Interest-bearing demand
deposits in other banks 9,046,017 1,540,810
---------------- -----------------
Total cash and cash equivalents 10,941,459 3,683,223
Securities available for sale, net 28,461,799 31,226,440
Investment securities held to maturity, net:
estimated fair value of $16,426,000(1998) and $19,647,000(1997) 16,413,225 19,643,589
Mortgage-backed securities held to maturity, net:
estimated fair value of $9,988,000(1998) and $10,438,000(1997) 9,921,027 10,414,679
Loans receivable, net of allowance for loan
losses of $591,478 (1998) $596,230 (1997) 108,182,535 105,467,485
Premises and equipment, net 2,811,851 2,775,060
Real estate owned, net 1,485,738 1,640,004
Federal Home Loan Bank of New York stock, at cost 1,154,400 1,106,600
Interest and dividends receivable, net 1,260,402 1,379,628
Other assets 1,508,301 807,631
---------------- -----------------
Total assets $182,140,737 $178,144,339
================= ==================
Liabilities and stockholder's equity
- ------------------------------------
Liabilities
- -----------
Deposits $170,054,340 $166,758,857
Borrowed Money 530,261 551,132
Advance payments by borrowers for
taxes and insurance 824,302 769,354
Other liabilities 378,652 200,537
---------------- -----------------
Total liabilities 171,787,555 168,279,880
================ =================
Stockholders' Equity
- --------------------
Common Stock (par value $1.00 per share)
authorized 5,000,000 shares: issued and
outstanding 440,100 shares 440,100 440,100
Additional paid-in capital 3,670,377 3,670,377
Retained earnings-substantially restricted 5,940,308 5,458,904
Unrealized gain on securities available for sale 302,397 295,078
---------------- -----------------
Total stockholders' equity 10,353,182 9,864,459
---------------- -----------------
Total liabilities and stockholders' equity $182,140,737 $178,144,339
================ =================
</TABLE>
SEE NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
PAGE 1
<PAGE>
FIRST SAVINGS BANCORP OF LITTLE FALLS, INC.
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
(UNAUDITED)
<TABLE>
<CAPTION>
THREE MONTHS ENDED SIX MONTHS ENDED
------------------ ----------------
JUNE 30 JUNE 30
------- -------
1 9 9 8 1 9 9 7 1 9 9 8 1 9 9 7
------- ------- ------- -------
<S> <C> <C> <C> <C>
Interest income
Loans $2,206,225 $2,107,027 $4,423,478 $4,084,674
Mortgage-backed securities 384,470 485,314 792,006 967,726
Investments 517,459 484,842 1,066,551 888,572
Other interest-earning assets 146,599 82,232 251,536 199,270
----------- ----------- ------------ ------------
Total interest income 3,254,753 3,159,415 6,533,571 6,140,242
----------- ----------- ------------ ------------
Interest expense
Deposits 2,141,098 2,005,801 4,234,489 3,963,085
Borrowed Money 8,941 1,586 18,057 1,586
----------- ----------- ------------ ------------
Total Interest expense 2,150,039 2,007,387 4,252,546 3,964,671
----------- ----------- ------------ ------------
Net interest income 1,104,714 1,152,028 2,281,025 2,175,571
Provision for loan losses 25,000 25,000 50,000 50,000
Net interest income after ----------- ----------- ------------ ------------
provision of loan losses 1,079,714 1,127,028 2,231,025 2,125,571
----------- ----------- ------------ ------------
Non-interest income
Service charges 24,529 24,821 52,313 46,589
Miscellaneous 12,308 18,748 27,459 28,507
Gain on sale of securities available for sale -- 8,236 -- 8,236
----------- ----------- ------------ ------------
Total non-interest income 36,837 51,805 79,772 83,332
----------- ----------- ------------ ------------
Non-interest expense
Salaries and employee benefits 365,558 362,131 730,476 726,147
Net occupancy expense 59,193 63,548 120,291 124,992
Equipment 95,319 92,813 185,100 181,193
Loss on foreclosed real estate 26,292 55,182 57,510 72,987
Federal insurance premium 25,768 25,314 51,570 47,703
Advertising and promotion 12,581 23,879 24,169 52,178
Legal fees 47,694 50,512 101,115 95,180
Miscellaneous 246,538 180,100 411,846 349,519
----------- ----------- ------------ ------------
Total non-interest expenses 878,943 853,479 1,682,077 1,649,899
----------- ----------- ------------ ------------
Income before income taxes(benefit) 237,608 325,354 628,720 559,004
Income taxes(benefit) 84,619 114,563 (292,784) 199,485
----------- ----------- ------------ ------------
Net income 152,989 210,791 921,504 359,519
----------- ----------- ------------ ------------
Other comprehensive income:
Unrealized holding gains on securities available for sale,
net of income taxes of $2,527, $3,785,
$3,157 and $17,973, respectively. 4,693 6,798 7,319 33,147
Reclassification adjustments for realized gains on
securities available for sale, net of income taxes of
$2,963 and $2,293, respectively -- (5,273) -- (5,273)
----------- ----------- ------------ ------------
Other comprehensive income: 4,693 1,525 7,319 27,874
----------- ----------- ------------ ------------
Comprehensive income $157,682 $212,316 $928,823 $387,393
=========== =========== ============ ============
Net income per common share- basic and diluted $0.35 $0.48 $2.09 $0.82
=========== =========== ============ ============
Weighted average number of common
shares outstanding- basic and diluted 440,100 440,100 440,100 440,100
=========== =========== ============ ============
</TABLE>
See notes to unaudited consolidated financial statements
Page 2
<PAGE>
FIRST SAVINGS BANCORP OF LITTLE FALLS INC.
------------------------------------------
AND SUBSIDIARY
--------------
CONSOLIDATED STATEMENTS OF CASH FLOWS
-------------------------------------
(unaudited)
<TABLE>
<CAPTION>
Six Months Ended June 30,
-------------------------
1998 1997
---- ----
<S> <C> <C>
Cash flows from operating activities:
- -------------------------------------
Net income $ 921,504 $ 359,519
Adjustments to reconcile net income to
--------------------------------------
net cash provided by operating activities:
-------------------------------------------
Depreciation 131,799 140,064
Amortization of premiums, discounts and fees, net 89,774 113,637
Provision for losses on loans and real estate owned 88,000 50,000
Net (gain)loss on sales of real estate owned (17,600) 6,133
Net gain on sales of securities available for sale -- (7,836)
Decrease(increase) in interest and dividends receivable, net 119,226 (231,187)
Increase in other assets (720,493) (318,286)
Increase in accrued interest payable 26,007 92,454
(Decrease)increase in other liabilities (41,935) 169,716
Amortization of branch premium 16,666 16,666
- ---------------------------------------------------- ------------ ------------
Net cash provided by operating activities 612,948 390,880
- ---------------------------------------------------- ------------ ------------
Cash flows from investing activities:
Purchase of securities available for sale (2,120,003) (1,920,484)
Proceeds from Investment securities held to maturity matured or called 10,154,079 2,000,000
Proceeds from sale of securities available for sale -- 3,340,763
Purchase of investment securities held to maturity (6,923,715) (8,998,371)
Purchase of Mortgage-backed securities held to maturity (1,021,875) --
Securities available for sale repayments 4,743,228 2,026,268
Mortgage-backed securities held to maturity repayments 1,513,838 1,933,064
Recovery of loan losses 1,157 --
Net increase in loans receivable (2,928,662) (9,192,472)
Additions to premises and equipment (168,590) (71,365)
Payments received on real estate owned -- 5,000
Proceeds from sales of real estate owned 360,128 338,285
Purchase of Federal Home Loan Bank of NY stock (47,800) (181,000)
- ----------------------------------------------------- ------------ ------------
Net cash provided by(used in) investment activities 3,561,785 (10,720,312)
- ----------------------------------------------------- ------------ ------------
Cash flows from financing activities:
Net increase in deposits 3,269,476 5,403,854
Increase in Federal Home Loan Bank Advances -- 568,000
Repayment of Federal Home Loan Bank Advances (20,871) --
Increase in advance payments by
borrowers for taxes and insurance 54,948 125,991
Preferred stock dividends paid -- (42,500)
Common stock dividends paid (220,050) (177,550)
- ---------------------------------------------------- ------------ ------------
Net cash provided by financing activities 3,083,503 5,877,795
- ---------------------------------------------------- ------------ ------------
Net increase(decrease) in cash and cash equivalents 7,258,236 (4,451,637)
Cash and cash equivalents -- beginning 3,683,223 10,673,339
------------ ------------
Cash and cash equivalents -- end $ 10,941,459 $ 6,221,702
============ ============
</TABLE>
See notes to unaudited consolidated financial statements
Page 3
<PAGE>
FIRST SAVINGS BANCORP OF LITTLE FALLS INC.
------------------------------------------
AND SUBSIDIARY
--------------
CONSOLIDATED STATEMENTS OF CASH FLOWS
-------------------------------------
(unaudited)
<TABLE>
<CAPTION>
Six Months Ended June 30,
-------------------------
1998 1997
---- ----
<S> <C> <C>
Supplemental disclosures of cash flows information:
- ---------------------------------------------------
Cash paid during the period for:
---------------------------------
Interest $ 4,226,539 $3,872,217
============ ==========
Income taxes $ 239,515 $ 31,669
============ ==========
Supplemental disclosure of noncash activities:
- ----------------------------------------------
Increase(decrease) in unrealized gain on securities,
net of deferred income taxes $ 7,319 $ 27,874
============ ==========
Loans transferred to real estate owned $ 226,262 $ --
============ ==========
Loans originated to facilitate the sale of
real estate owned $ -- $ 251,000
============ ==========
Common stock dividend declared but not yet paid $ 220,050 $ 42,500
============ ==========
</TABLE>
See notes to unaudited consolidated financial statements
Page 4
<PAGE>
First Savings Bancorp of Little Falls, Inc.
-------------------------------------------
Notes To Consolidated Financial Statements
------------------------------------------
The consolidated financial statements include the accounts of First
Savings Bancorp of Little Falls, Inc. (the "Company") and its wholly owned
subsidiary, First Savings Bank of Little Falls, FSB (the "Savings Bank") and the
Savings Bank's wholly owned subsidiaries, The First Service Corporation of
Little Falls and Redeem, Inc. All significant intercompany balances and
transactions have been eliminated in consolidation.
These consolidated financial statements were prepared in accordance
with instructions for Form 10-QSB and therefore, do not include all disclosures
necessary for a complete presentation of the statements of financial condition,
statements of income, and statements of cash flows in conformity with generally
accepted accounting principles. However, all adjustments which are, in the
opinion of management, necessary for the fair presentation of the interim
financial statements have been included and all such adjustments are of a normal
recurring nature. The results of operations for the six months ended June 30,
1998 are not necessarily indicative of the results that may be expected for the
fiscal year ending December 31, 1998 or any other interim period.
These statements should be read in conjunction with the consolidated
statements and related notes which are incorporated by reference in the
Company's Annual Report on Form 10-KSB for the year ended December 31, 1997.
Effective January 1, 1998, the Company adopted Financial Accounting
Standards Board Statement of Financial Accounting Standards ("Statement") No.
130, "Reporting Comprehensive Income". Statement No. 130 requires the reporting
of comprehensive income in addition to net income from operations. Comprehensive
income is a more inclusive financial reporting methodology that includes
disclosure of certain financial information that historically has not been
recognized in the calculation of net income. As required, the provisions of
Statement No. 130 have been retroactively applied to previously reported
periods. The application of Statement No. 130 had no effect on the Company's
consolidated financial condition or operations.
In February 1998, the President recognized taxable income based upon
the removal of a restriction on transfer of previously awarded common stock.
Such shares were previously awarded to the President by an investor group. As a
result, the Bank recognized a tax deductible expense of $542,000. Such deduction
created a permanent timing difference in the calculation of income tax expense.
Such tax benefit has been recorded in the quarter ended March 31, 1998, revising
previously reported data as follows:
As Previously
recorded 3/31/98 As revised
-------------------------------
Income before income tax $391,112 $391,112
Income tax(benefit) 164,523 (377,403)
------- --------
Net Income 226,589 768,515
======= ========
Net Income per common
share-basic and diluted $ .51 $1.75
====== ======
Page 5
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
-------------------------------------------------
CONDITION AND RESULTS OF OPERATIONS
-----------------------------------
FINANCIAL CONDITION AT JUNE 30, 1998
- ------------------------------------
Total assets of the Company increased $4.0 million or 2% from $178.1
million at December 31, 1997 to $182.1 million at June 30, 1998 primarily due to
a $7.3 million increase in interest bearing demand deposits in other banks, and
a $2.7 million increase in loans receivable, offset by a $2.8 million decrease
in securities available for sale, and a $3.2 million net decrease in investment
securities held to maturity. In view of the Company's decreased loan demand for
the first half of 1998, the Company increased its interest bearing demand
deposits in other banks. The increase was funded primarily from repayments of
mortgage-backed securities held to maturity, investment securities held to
maturity that were called, repayments from loans receivable and a $3.3 million
increase in deposits. The Bank as of June 30, 1998 had $2.2 million of
outstanding loan commitments that will be funded in the third quarter of 1998
with outstanding balances of interest bearing demand deposits in other banks.
Deposits increased $3.3 million or 2% from $166.8 million at December
31, 1997 to $170.1 million at June 30, 1998. The increase resulted primarily
from the growth of regular savings, Now accounts and the Company's response to
the general increase in rates offered by other bank's in the market area. The
Company did not offer promotional rates on deposits during this quarter.
RESULTS OF OPERATIONS FOR THE THREE MONTHS ENDED JUNE 30, 1998
- --------------------------------------------------------------
Net income for the three months ended June 30, 1998 decreased $58,000
or 27% from $211,000 for the three month period ended June 30, 1997 to $153,000
for three month period ended June 30, 1998. This decrease was primarily due to a
$47,000 decrease in net interest income, a $15,000 decrease in non-interest
income and a $26,000 increase in non-interest expenses, offset by a $30,000
decrease in income taxes.
For the three months ended June 30, 1998, net interest income decreased
$47,000 from $1.15 million for the same period in 1997 to $1.10 million in 1998.
The primary reason for the decrease was during the three months ended June 30,
1998, the Company's interest rate spread and net interest margin decreased to
2.57% and 2.56%, respectively, compared to 2.75% and 2.74%, respectively for the
same period of 1997. The lower spread and margin are primarily due to a lower
yield on earning assets and the higher cost of funds in the second quarter of
1998. Average balances of the securities and loan portfolio increased $7.0
million due to asset growth from the origination of whole loans and the purchase
of securities.
Page 6
<PAGE>
Non-interest income decreased $15,000 or 29% from $52,000 for the three
month period ended June 30, 1997 to $37,000 for the three month period ended
June 30, 1998. The decrease was primarily the result of a gain on sale of
investment securities available for sale totaling $8,000 during the three month
period ended June 30, 1997 compared to no sales during the same period this
year. The decrease was also the result of decreases in the collection of
mortgage late charges and DDA fees.
Non-interest expense increased to $879,000 for the three month period ended
June 30, 1998 from $853,000 for the three month period ended June 30, 1997. Loss
on foreclosed real estate decreased $29,000 due to the lower holding costs and
settlement expenses on disposition of properties during the three month period
ended June 30, 1998. Miscellaneous expenses increased $66,000 due to $60,000
increase in consulting expenses that were paid during the three month period
ended June 30, 1998 compared to no additional consulting expenses for the same
period last year. Non-interest expenses other than loss on foreclosed real
estate and miscellaneous expense in aggregate, decreased $12,000 or 2%.
Income taxes were $85,000 and $115,000 for the three months ended June
30, 1998 and 1997, respectively. The effective tax rate for the three month
periods ended June 30, 1998 and 1997, was 36% and 35% respectively.
RESULTS OF OPERATIONS FOR THE SIX MONTHS ENDED JUNE 30, 1998
- ------------------------------------------------------------
Net income for the six months ended June 30, 1998 increased $562,000 or 156%
from $360,000 for the six month period ended June 30, 1997 to $922,000 for the
six month period ended June 30, 1998. The increase was primarily due to a
$293,000 income tax benefit during the six month period ended June 30, 1998
compared to a $199,000 income tax expense for the same period last year, and a
$105,000 increase in net interest income, offset by a $3,000 decrease in
non-interest income and a $32,000 increase in non-interest expense.
For the six months ended June 30, 1998, net interest income increased $105,000
from $2.18 million for the same period in 1997 to $2.28 million in 1998. The
main reason for the increase was that the average balances of the securities and
loan portfolio increased $10.0 million due to asset growth from the origination
of whole loans and the purchase of investment securities held to maturity during
the six month period ended June 30, 1998 compared to the same period last year.
Declining interest rates partially offset the increase in average balances. The
interest rate spread and net interest margin declined to 2.60% and 2.59%,
respectively, during the six months ended June 30, 1998 compared to 2.73% and
2.72%, respectively for the same period of 1997. The lower spread and margin are
primarily due to a lower yield on earning assets and higher cost of funds in the
first half of 1998.
Page 7
<PAGE>
Non-interest income decreased $3,000 or 4% from $83,000 for the six month
period ended June 30, 1997 to $80,000 for the six month period ended June 30,
1998. The decrease was primarily the result of a gain on sale of investment
securities available for sale totaling $8,000 during the six month period ended
June 30, 1997 compared to no sales during the same period this year, partially
offset by increases in collection of DDA fees.
Non-interest expense increased $32,000 or 2% from $1.65 million for the six
month period ended June 30, 1997 to $1.68 million for the six month period ended
June 30, 1998. This increase was primarily due to a $62,000 increase in
miscellaneous expense partially offset by a 15,000 decrease in loss on
foreclosed real estate. Loss on foreclosed real estate decreased $15,000 due to
the lower holding costs and settlement expenses on disposition of properties
during the six month period ended June 30, 1998. Miscellaneous expenses
increased $62,000 due to a $60,000 increase in consulting expenses that were
paid during the six month period ended June 30, 1998 compared to the same period
last year. Non-interest expenses other than loss on foreclosed real estate and
miscellaneous expense in aggregate, decreased $15,000 or 1%.
An income tax benefit of $293,000 was recorded for the six month period ended
June 30, 1998 compared to a $199,000 expense for the same period last year. The
current period amount includes a $542,000 benefit related to the release of
certain restrictions on the common stock owned by a member of the control group.
Excluding such amount, the current period would have reflected an income tax
expense of $249,000. The effective tax rate for the six month periods ended June
30, 1998 and 1997, exclusive of the additional tax expense noted above, was
39.6% and 35.7% respectively
Asset Quality
- -------------
The following schedule sets forth certain information regarding the Bank's
non-performing as of June 31, 1998, and as of December 31, 1997.
June 31, December 31,
1998 1997
-------- ---------
Non-accrual loans...................... $ 1,398 $2,601
Renegotiated loans..................... 406 406
------------------
Total non-accural and
renegotiated loans 1,804 3,007
Other real estate owned 1,486 1,640
------------------
Total............................... $3,290 $4,647
==================
At June 30, 1998, non-accrual loans decreased $1.2 million from December 31,
1997. Residential loans totaling $253,000 became nonaccrual, residential loans
formally non-accrual totaling $501,000 became current, a $250,000 payment was
made on a multi-family loan, four loans totaling $479,000 were paid-off and a
loan of $226,000 was transferred to other real estate owned and sold during the
second quarter of 1998. As of June 30, 1998, other real estate owned represented
one non-residential property.
Page 8
<PAGE>
The following table represents an analysis of the allowance for loan losses:
Six months ended June 30, Year ended December 31,
-------------------------------------------------------
1998 1997 1997
------------------------------------------------
Balance - beginning $596,230 $523,715 $523,715
Provision charged 50,000 50,000 101,174
Loans charged off (55,909) (33,908) (37,374)
Recoveries 1,157 ----- 8,715
------------------------------------------------
Balance-ending $591,478 $539,807 $596,230
================================================
Net loans charged off as a
percent of average loans (1) 10% .07% .03%
Allowance as a percent of
Total loans................ 54% .52% .56%
Non performing loans....... 32.79% 25.99% 19.83%
(1)Annualized
LIQUIDITY AND CAPITAL RESOURCES
- -------------------------------
The Savings Bank is required to maintain minimum levels of liquid
assets, as defined by the Office Of Thrift Supervision regulations. This
requirement, which may be varied from time to time depending upon economic
conditions and deposit flows, is based upon a percentage of deposits and
short-term borrowings. The required minimum ratio is 4%. The Savings Bank's
liquidity ratio averaged 39.0% during first half of 1998.
The Savings Bank anticipates that it will have sufficient funds
available to meet its current loan commitments and normal savings withdrawals.
At June 30, 1998, the Savings Bank had outstanding loan commitments of $2.2
million. In addition, it had $93.6 million in certificates of deposits scheduled
to mature within one year of June 30, 1998. Based upon historical experience,
management believes that a substantial portion of such deposits will remain with
the Savings Bank.
As of June 30, 1998, the Company had regulatory capital that was in
excess of applicable limits. The Company is required under certain federal
regulations to maintain tangible capital equal to at least 1.5% of its tangible
assets, core capital equal to at least 3.00% of adjusted tangible assets and
risk-based capital equal to at least 8.00% of risk-weighted assets. At June 30,
1998, the Savings Bank had tangible capital equal to 5.05% of adjusted total
assets, core capital equal to 5.05% of adjusted total assets and total capital
equal to 12.46% of risk-weighted assets.
Page 9
<PAGE>
YEAR 2000
- ---------
A great deal of information has been disseminated about the global computer
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 the year 1900 and compute payment,
interest of 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 operation of the Bank. Data processing is also essential to
most other financial institutions and many other companies. All of the material
data processing of the Bank that could be affected by this problem is provided
by a third party hardware and software providers. The hardware and software
provider of the Bank has advised the Bank that it expects to resolve this
potential problem before the year 2000. However, if the hardware and software
provider is unable to resolve this potential problem in time, the Bank would
likely experience significant data processing delays, mistakes of failures.
These delays, mistakes or failures could have a significant adverse impact on
the financial condition and results of operations of the Bank.
Based on a preliminary study, the Bank expects to spend approximately $50,000
to $60,000 from 1998 through 1999 to modify its computer information systems
enabling proper processing of transactions relative to the year 2000 and beyond.
The Bank continues to evaluated appropriate courses of corrective action,
including replacement of certain systems whose associated costs world be
recorded as assets and amortized. Accordingly, the Bank does not expect the
amounts required to be expensed over the next two years to have a material
effect on its financial position or results of operations.
Page 10
<PAGE>
FIRST SAVINGS BANCORP OF LITTLE FALLS, INC.
-------------------------------------------
PART II
-------
Item 1. Legal Proceedings
The Company and the Savings Bank are not engaged in any legal
proceedings of a material nature at the present time. From time to
time, the Savings Bank is a party to legal proceedings wherein it
enforces its security interest in loans.
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. Not Applicable
Item 6. Exhibits and Reports on Form 8-K
--------------------------------
(a)Exhibits
Exhibit 27 Financial Data Schedule(electronic filing only)
b)Reports on Form 8-K
Not Applicable
Page 11
<PAGE>
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.
FIRST SAVINGS BANCORP OF LITTLE FALLS INC.
(Registrant)
Date: August 12, 1998 /s/Haralambos S. Kostakopoulos
---------------------------------------------
Haralambos S. Kostakopoulos
President
Chief Executive Officer
Date: August 12, 1998 /s/Brian McCourt
---------------------------------------------
Brian McCourt
Vice President
Treasurer
Page 12
<TABLE> <S> <C>
<ARTICLE> 9
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION DERIVED FROM THE
QUARTERLY REPORT ON FORM 10-QSB AND IS QUALIFIED IN ITS ENTIRETY BY
REFERENCE TO SUCH FINANCIAL INFORMATION.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> JUN-30-1998
<CASH> 1,895
<INT-BEARING-DEPOSITS> 9,046
<FED-FUNDS-SOLD> 0
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 28,462
<INVESTMENTS-CARRYING> 26,334
<INVESTMENTS-MARKET> 26,414
<LOANS> 108,183
<ALLOWANCE> 591
<TOTAL-ASSETS> 182,141
<DEPOSITS> 170,054
<SHORT-TERM> 530
<LIABILITIES-OTHER> 1,203
<LONG-TERM> 0
0
0
<COMMON> 440
<OTHER-SE> 3,670
<TOTAL-LIABILITIES-AND-EQUITY> 182,141
<INTEREST-LOAN> 4,423
<INTEREST-INVEST> 1,859
<INTEREST-OTHER> 252
<INTEREST-TOTAL> 6,534
<INTEREST-DEPOSIT> 4,234
<INTEREST-EXPENSE> 18
<INTEREST-INCOME-NET> 2,281
<LOAN-LOSSES> 50
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 1,682
<INCOME-PRETAX> 629
<INCOME-PRE-EXTRAORDINARY> 629
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 922
<EPS-PRIMARY> 2.09
<EPS-DILUTED> 2.09
<YIELD-ACTUAL> 2.56
<LOANS-NON> 1,398
<LOANS-PAST> 15
<LOANS-TROUBLED> 406
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 596
<CHARGE-OFFS> 56
<RECOVERIES> 1
<ALLOWANCE-CLOSE> 591
<ALLOWANCE-DOMESTIC> 591
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 591
</TABLE>
