<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC
______
FORM 10-Q
QUARTERLY REPORT UNDER SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For Quarter Ended March 31, 1999 Commission File Number 0-27098
FIRST SAVINGS BANCORP, INC.
(Exact name of registrant as specified in its charter)
North Carolina 56-1842701
-------------- ----------
(State of jurisdiction of (I.R.S. Employer
incorporation or organization) Identification number)
205 SE Broad Street, Southern Pines, North Carolina 28387
- --------------------------------------------------- -----
(Address of principal executive offices) (Zip Code)
(910) 692-6222
--------------
(Registrant's telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 12 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 April 30, 1999 there were 3,534,369 shares of the issuer's common stock
issued and outstanding.
<PAGE>
FIRST SAVINGS BANCORP, INC.
TABLE OF CONTENTS
<TABLE>
<CAPTION>
PART I FINANCIAL INFORMATION Page Number
---------------------
<S> <C>
Item 1. Financial Statements
Consolidated Statements of Financial Condition 3
Consolidated Statements of Income 4
Consolidated Statements of Cash Flow 5
Notes to Consolidate Financial Statements 6
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations 7-9
PART II OTHER INFORMATION
-----------------
Item 5. Other Information 9-10
SIGNATURES 11
</TABLE>
<PAGE>
FIRST SAVINGS BANCORP, INC.
- ------------------------------------------------------------------------------
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (UNAUDITED)
<TABLE>
<CAPTION>
MARCH 31, June 30,
--------- --------
1998 1998
--------- --------
<S> <C> <C>
($ in thousands)
ASSETS
Cash and due from banks $ 2,667 $ 3,825
Interest earning deposits with banks 18,740 3,991
Investment securities available
for sale at fair value 48,274 72,732
Investment securities held to maturity
at amortized cost (fair values - $13,803
at March 31, 1999;
$9,821 at June 30, 1998) 12,750 9,737
Loans receivable (net of allowance for loan
losses of $596 at March 31, 1999
and June 30, 1998) 206,021 208,094
Accrued interest receivable 1,308 1,749
Premises and equipment 2,295 1,936
Stock in the Federal Home Loan Bank of Atlanta,
at cost 1,930 1,930
Prepaid expenses and other assets 212 174
-------- --------
TOTAL $294,197 304,168
======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES:
Deposits 226,147 211,925
Borrowed funds 20,000
Accrued expenses and other liabilities 2,324 2,722
-------- --------
Total liabilities 228,471 234,647
-------- --------
SHAREHOLDERS' EQUITY:
Preferred stock, no par value, 5,000,000
shares, authorized, none issued and
outstanding
Common stock, no par value, 20,000,000 shares
authorized, 3,569,202 shares issued
and outstanding at March 31, 1999;
3,710,820 at June 30, 1998 30,749 35,536
Unearned compensation related to ESOP note
payable (51) (158)
Net unrealized gain on securities available
for sale 140 375
Retained earnings 34,888 33,768
-------- --------
Total shareholders' equity 65,726 69,521
-------- --------
TOTAL $294,197 $304,168
======== ========
</TABLE>
See notes to consolidated financial statements
<PAGE>
FIRST SAVINGS BANCORP, INC.
- ------------------------------------------------------------------------------
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
<TABLE>
<CAPTION>
THREE MONTHS ENDED NINE MONTHS ENDED
MARCH 31, MARCH 31,
-----------------------------------------------------------
($ in thousands except per share data) 1999 1998 1999 1998
-----------------------------------------------------------
<S> <C> <C> <C> <C>
INTEREST AND DIVIDEND INCOME:
Interest on loans receivable $ 4,117 $ 4,092 $ 12,511 $ 12,096
Interest on mortgage-backed securities 211 185 599 492
Interest on investment securities 716 1,248 2,721 3,897
Dividends on investment securities 39 37 211 107
Other 173 99 300 318
-----------------------------------------------------------
Total interest income 5,256 5,661 16,243 16,910
-----------------------------------------------------------
INTEREST EXPENSE:
Interest on deposits 2,414 2,479 7,397 7,466
Interest on borrowings 273 257 895
-----------------------------------------------------------
Total interest expense 2,414 2,752 7,654 8,361
-----------------------------------------------------------
Net interest income 2,842 2,909 8,589 8,549
Provision for loan losses
Net interest income after provision
for loan losses 2,842 2,909 8,589 8,549
-----------------------------------------------------------
NONINTEREST INCOME:
Fees and service charges 168 148 522 393
Income from real estate operations 2 2 6 6
Rent on safe deposit boxes 14 10 23 19
Other, net 2 22 5 44
-----------------------------------------------------------
Total noninterest income, net 186 182 556 462
-----------------------------------------------------------
GENERAL AND ADMINISTRATIVE EXPENSES:
Compensation and fringe benefits 540 531 1,645 1,565
Occupancy and building 68 53 183 159
Federal insurance premiums 33 33 97 99
Computer services 152 82 341 252
Other 240 240 763 707
-----------------------------------------------------------
Total general and administrative
expenses 1,033 939 3,029 2,782
-----------------------------------------------------------
INCOME BEFORE INCOME TAXES 1,995 2,152 6,116 6,229
INCOME TAX EXPENSE 734 798 2,250 2,301
-----------------------------------------------------------
NET INCOME $ 1,261 $ 1,354 $ 3,866 $ 3,928
===========================================================
NET INCOME PER COMMON SHARE:
Basic: $ 0.35 $ 0.37 $ 1.05 $ 1.06
===========================================================
Diluted: $ 0.33 $ 0.34 $ 0.97 $ 0.98
===========================================================
WEIGHTED AVERAGE SHARES OUTSTANDING:
Basic: 3,613,559 3,704,823 3,678,848 3,694,114
===========================================================
Diluted: 3,879,896 4,035,403 3,967,173 4,015,417
===========================================================
</TABLE>
See notes to consolidated financial statements.
4
<PAGE>
FIRST SAVINGS BANCORP, INC.
- ------------------------------------------------------------------------------
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
<TABLE>
<CAPTION>
NINE MONTHS ENDED
MARCH 31,
---------------------
($ in thousands) 1999 1998
---------------------
<S> <C> <C>
OPERATING ACTIVITIES:
Net income $ 3,866 $ 3,928
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation of premises and equipment 84 75
Issuance of ESOP shares 240 227
Net amortization on investments 152 73
Loan origination fees and costs deferred,
net of current amortization (25) (8)
Changes in:
Other assets 403 152
Other liabilities (254) (354)
---------------------
Net cash provided by operating activities 4,466 4,093
---------------------
INVESTING ACTIVITIES:
Net (increase) decrease in interest-earning
deposits with banks (14,749) (1,814)
Proceeds from maturities of investments 51,000 27,500
Purchases of investment securities (32,000) (20,950)
Principal repayments on mortgage-backed securities 1,938 1,335
Loan originations net of repayments and net fees 2,098 (11,123)
Proceeds from sale of property and equipment 9
Gain on sale of property and equipment (7)
Purchases of premises and equipment (443) (63)
Proceeds from sale of real estate 188
Gain on sale of real estate (21)
---------------------
Net cash provided by (used in) investing activities 7,844 (4,946)
---------------------
FINANCING ACTIVITIES:
Net increase in deposits 14,222 8,855
Net decrease in borrowed funds (20,000) (5,000)
Net proceeds from exercise of stock options 324 110
Repurchases of common stock (5,244)
Cash dividends paid (2,770) (2,366)
---------------------
Net cash provided by (used in) financing activities (13,468) 1,599
---------------------
INCREASE IN CASH AND DUE FROM BANKS (1,158) 746
CASH AND DUE FROM BANKS, BEGINNING OF PERIOD 3,825 2,801
---------------------
CASH AND DUE FROM BANKS, END OF PERIOD $ 2,667 $ 3,547
=====================
SUPPLEMENTAL DISCLOSURES:
- ------------------------
Cash paid for:
Interest on deposits $ 7,374 $ 7,417
Interest on borrowed funds 332 916
Income taxes 2,246 2,495
</TABLE>
See notes to consolidated financial statements.
5
<PAGE>
FIRST SAVINGS BANCORP, INC.
- ------------------------------------------------------------------------------
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. Basis of Presentation: The accompanying consolidated financial statements
----------------------
include the accounts of First Savings Bancorp, Inc. and its wholly-owned
subsidiary, First Savings Bank of Moore County, Inc., SSB (the "Bank"),
together referred to as "First Savings". All significant intercompany
balances and transactions have been eliminated in consolidation.
2. Accounting Policies: The significant accounting policies followed by First
--------------------
Savings for interim financial reporting are consistent with the accounting
policies followed for annual financial reporting. The accompanying unaudited
consolidated financial statements have been prepared in accordance with
generally accepted accounting principles for interim financial information
and with the instructions to Form 10-Q and Article 10 or Regulation S-X.
Accordingly, they do not include all of the information and footnotes
required by generally accepted accounting principles for complete financial
statements. In the opinion of management, all adjustments (none of which
were other than normal accruals) necessary for a fair presentation of the
financial position and results of operations for the periods presented have
been included. The results of operations for the three and nine month
periods ended March 31, 1999 are not necessarily indicative of the results
of operations that may be expected for the year ending June 30, 1999. For
further information, refer to the consolidated financial statements and
footnotes thereto included in the annual report on Form 10-K for the year
ended June 30, 1998.
3. Earnings Per Common Share: Effective July 1,1997, First Savings Bank has
--------------------------
implemented Statement of Financial Accounting Standards ("SFAS") No. 128,
"Earnings per Share". This Statement simplifies the standards for computing
earnings per share previously found in Accounting Principles Board ("APB")
Opinion No. 15, Earnings per Share ("EPS"), and makes them comparable to
international EPS standards. It replaces the presentation of primary EPS
with the presentation of basic EPS. It also requires dual presentation of
basic and diluted EPS on the face of the income statement for all entities
with complex capital structures and requires a reconciliation of the
numerator and the denominator of the basic EPS computation to the numerator
and denominator of the diluted EPS computation. Basic EPS excludes dilution
and is computed by dividing income available to common shareholders by the
weighted-average number of common shares outstanding for the period. Diluted
EPS reflects the potential dilution that could occur if securities or other
contracts to issue common stock or resulted in the issuance of common stock
that then shared in the earnings of the entity. Diluted EPS is computed
similarly to fully diluted EPS pursuant to APB Opinion No. 15.
Basic and diluted earnings per share have been computed based upon net
income as presented in the accompanying statements of operation divided by
the weighted average number of common shares outstanding or assumed to be
outstanding as summarized below.
<TABLE>
<CAPTION>
THREE MONTHS ENDED NINE MONTHS ENDED
MARCH 31, MARCH 31,
-------------------- --------------------
1999 1998 1999 1998
-------------------- --------------------
<S> <C> <C> <C> <C>
Weighted average number of common
shares used in basic EPS 3,613,559 3,704,823 3,678,848 3,694,114
Effect of dilutive stock options 266,337 330,580 288,325 321,303
--------- --------- --------- ---------
Weighted average number of common
shares and dilutive potential common
shares used in diluted EPS 3,879,896 4,035,403 3,967,173 4,015,417
========= ========= ========= =========
</TABLE>
4. Stock Repurchase Plan: On September 12, 1996 First Savings' Board of
----------------------
Directors adopted the First Savings Bancorp, Inc. Stock Repurchase Plan.
Pursuant to the Plan, First Savings may repurchase shares of its outstanding
common stock in the open market or in privately negotiated transactions in
accordance with regulatory requirements. On September 27, 1996 First Savings
initiated a plan to repurchase 10% of its stock. As of March 31, 1999,
311,811 shares have been repurchased.
6
<PAGE>
FIRST SAVINGS BANCORP, INC.
- ------------------------------------------------------------------------------
MANAGEMENT'S DISCUSSION AND ANALYSIS
GENERAL
First Savings Bancorp, Inc., a North Carolina holding company ("First Savings"),
was formed on November 1, 1995 to become the parent holding company of First
Savings Bank of Moore County, Inc., SSB (the "Bank"), a North Carolina chartered
stock savings bank. First Savings engages in no substantial business activities
other than the activities related to ownership of the Bank.
The Bank is primarily engaged in the business of attracting deposits from the
general public and using those funds to originate mortgage loans for the
purchase or construction of one-to-four family homes. To a lesser extent, the
Bank also originates multi-family residential mortgage loans, nonresidential
real estate loans, loans secured by deposits, home equity lines of credit,
installment loans and credit card loans. As a savings bank, the Bank's deposit
accounts are insured up to applicable limits by the Savings Association
Insurance Fund ("SAIF") of the Federal Deposit Insurance Corporation ("FDIC").
The Bank conducts its operations through its main office in Southern Pines,
North Carolina and 4 branch offices located in Moore County.
FINANCIAL CONDITION
First Savings had total assets of $294.2 million at March 31, 1999 compared to
$304.2 million at June 30, 1998. The decrease was primarily attributable to
maturing investment securities and the repayment of $20.0 million in borrowed
funds. Net loans decreased from $208.1 million at June 30, 1998 to $206.0
million at March 31, 1999. This was partially due to a slow down in new loan
originations and an increase in the percentage of loans originated for sale in
the secondary market.
Deposits increased by $14.2 million to $226.1 million at March 31, 1999 from
$211.9 million at June 30, 1998, and shareholders' equity decreased from $69.5
million at June 30, 1998 to $65.7 million at March 31, 1999 as a result of stock
repurchases.
LIQUIDITY
Maintaining adequate liquidity while managing interest rate risk is the primary
goal of First Savings' asset and liability management strategy. Liquidity is the
ability to fund the needs of the Bank's borrowers and depositors, pay operating
expenses, and meet regulatory liquidity requirements. Maturing investments, loan
and mortgage-backed security principal repayments, deposits and income from
operations are the main sources of liquidity. The Bank's primary uses of
liquidity are to fund loans and to make investments.
As of March 31, 1999, liquid assets (cash and cash equivalents, and marketable
investment securities, less pledged investments) were approximately $78.4
million, which represents 34.7% of deposits. As a North Carolina chartered
savings bank, First Savings is required to maintain liquid assets equal to at
least 10.0% of its total assets. At March 31, 1999, this liquidity ratio, based
on North Carolina regulations, was 26.6% Management considers current liquidity
levels to be adequate to meet First Savings' foreseeable needs.
At March 31, 1999, outstanding mortgage loan commitments and available home
equity line of credit balances were $19.4 million, available credit card line of
credit balances were $4.0 million and the undisbursed portion of construction
loans was $9.9 million. Funding for these commitments is expected to be provided
from deposits, loan and mortgage-backed securities principal repayments,
maturing investments and income generated from operations.
7
<PAGE>
FIRST SAVINGS BANCORP, INC.
- ------------------------------------------------------------------------------
MANAGEMENT'S DISCUSSION AND ANALYSIS
REGULATORY CAPITAL REQUIREMENTS
Federal banking regulations require that bank holding companies and their bank
subsidiaries meet various regulatory capital requirements administered by the
federal banking agencies. Failure to meet minimum capital requirements can
initiate certain mandatory, and possibly additional discretionary actions by
regulators that, if undertaken, could have a direct material effect on First
Savings' financial statements. Under capital adequacy guidelines and the
regulatory framework for prompt corrective action, First Savings must meet
specific capital guidelines that involve quantitative measures of First Savings
assets, liabilities, and certain off-balance-sheet items as calculated under
regulatory accounting practices. First Savings' capital amounts and
classification are also subject to qualitative judgements by the regulators
about components, risk weightings, and other factors.
Quantitative measures established by regulation to ensure capital adequacy
require First Savings to maintain minimum amounts and ratios of total and Tier 1
capital to risk-weighted assets, and of Tier 1 capital to average assets.
As of December 31, 1997, the most recent notification from the FDIC categorized
the Bank as well capitalized under the regulatory framework for prompt
corrective action. To be categorized as well capitalized, the Bank must maintain
minimum total risk-based, Tier 1 risk-based, and Tier 1 leverage ratios as set
forth in the table. There are no conditions or events since that notification
that management believes have changed the category.
ACTUAL CAPITAL AMOUNTS AND RATIOS FOR FIRST SAVINGS AND THE BANK
ARE PRESENTED IN THE TABLE BELOW:
<TABLE>
<CAPTION>
TO BE WELL
CAPITALIZED UNDER
FOR CAPITAL PROMPT CORRECTIVE
ACTUAL ADEQUACY PURPOSES ACTION PROVISIONS
AMOUNT RATIO AMOUNT RATIO AMOUNT RATIO
----------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
AS OF MARCH 31, 1999
Total Capital (to Risk Weighted Assets:
Consolidated $66,182 43.93% $12,053 *8.0% n/a n/a
First Savings Bank of Moore Co., Inc., SSB $58,856 39.06% $12,053 **8.0% $15,066 **10.0%
Tier 1 Capital (to Risk Weighted Assets):
Consolidated $65,586 43.53% $ 6,027 **4.0% n/a n/a
First Savings Bank of Moore Co., Inc., SSB $58,260 38.66% $ 6,028 **4.0% $ 9,040 **6.0%
Tier 1 Capital (to Average Assets):
Consolidated $65,586 22.57% $11,624 **4.0% n/a n/a
First Savings Bank of Moore Co., Inc., SSB $58,260 20.41% $11,419 **4.0% $14,530 *5.0%
</TABLE>
* Greater than.
** Greater than or equal.
In addition to federal regulatory requirements, the Bank is subject to a North
Carolina savings bank capital requirement of at least 5% of total assets. At
March 31, 1999, the Bank's capital ratio under the North Carolina requirements
was 20.02%.
At March 31, 1999, First Savings and the Bank exceeded all capital requirements.
8
<PAGE>
FIRST SAVINGS BANCORP, INC.
- ------------------------------------------------------------------------------
MANAGEMENT'S DISCUSSION AND ANALYSIS
COMPARISON OF OPERATING RESULTS FOR THE THREE MONTHS ENDED MARCH 31, 1999 AND
1998.
Net income for the three months ended March 31, 1999 was $1,261,000, compared to
$1,354,000 for the same period in 1998. Basic and diluted earnings per share for
the three months ended March 31, 1999 was $0.35 and $0.33, respectively,
compared to $0.37 and $0.34, respectively, for the same period of the prior
year. The decrease in earnings was primarily due to decreases in the net
interest margin and an increase in computer service expenses.
Net interest income for the quarter ended March 31, 1999 decreased $67,000 due
primarily to a decrease in the level of earning assets.
General and administrative expenses increased from $939,000 for the quarter
ended March 31, 1998 to $1,033,000 for the quarter ended March 31, 1999 due
primarily to increases in computer services related to the year 2000.
COMPARISON OF OPERATING RESULTS FOR THE NINE MONTHS ENDED MARCH 31, 1999 AND
1998.
Net income for the nine months ended March 31, 1999 was $3,866,000, compared to
$3,928,000 for the same period in 1998. Basic and diluted earnings per share for
the nine months ended March 31, 1999 was $1.05 and $0.97, respectively, compared
to $1.06 and $0.98, respectively, for the same period of the prior year. The
decrease in earnings was primarily due to increases in general and
administrative expenses.
Net interest income increased $40,000 from $8,549,000 for the nine months ended
March 31, 1998 to $8,589,000 for the same period of the current year. The
increase was primarily due to higher interest rates spreads.
Led by fees and service charges, noninterest income increased $94,000 or 20.3%
from $462,000 for the nine month period ended March 31, 1998 to $556,000 for the
same period of the current year.
General and administrative expenses for the nine month period ended March 31,
1999 was $3,029,000 compared to $2,782,000 for the same period of the prior
year. The increase was primarily due to increases in compensation and fringe
benefits and computer related expense associated with the year 2000.
OTHER INFORMATION
YEAR 2000 COMPLIANCE
The "Year 2000" issue confronting First Savings and its suppliers, customers,
customers' suppliers and competitors centers on the inability of computer
systems to recognize the Year 2000. Many existing computer programs and systems
were originally programmed with six digit dates that provided only two digits to
identify the calendar year in the date field, without considering the upcoming
change in the century. With the impending new millennium, these programs and
computers will recognize "00" as the year 1900 rather than the year 2000. Like
most financial service providers, First Savings and its operations may be
significantly affected by the Year 2000 issue due to its dependence on computer
9
<PAGE>
FIRST SAVINGS BANCORP, INC.
- ------------------------------------------------------------------------------
OTHER INFORMATION
generated financial information. Software, hardware, and equipment both within
and outside First Savings' direct control and with whom First Savings
electronically or operationally interfaces (e.g. third party vendors providing
data processing, information system management, maintenance of computer systems,
and credit bureau information) are likely to be affected. Furthermore, if
computer systems are not adequately changed to identify the Year 2000, many
computer applications could fail or create erroneous results. As a result, many
calculations which rely on date field information, such as interest, payment of
due dates and other operating functions, could generate results which are
significantly misstated, and First Savings could experience a temporary
inability to process transactions, prepare statements or engage in similar
normal business activities. In addition, under certain circumstances, failure to
adequately address the Year 2000 issue could adversely affect the viability of
First Savings' suppliers and creditors and the creditworthiness of its
borrowers. Thus, if not adequately addressed, the Year 2000 matter could result
in a significant adverse impact on products, services and the competitive
condition of First Savings.
Financial institution regulators have recently increased their focus upon Year
2000 compliance issues, issuing guidance concerning the responsibilities of
senior management and directors. The Federal Financial Institutions Examination
Council ("FFIEC") has issued several interagency statements on Year 2000 Project
Management Awareness. These statements require financial institutions to, among
other things, examine the Year 2000 implications of reliance on vendors, data
exchange and potential impact on customers, suppliers and borrowers. These
statements also require each federally regulated financial institution to survey
its exposure, measure its risk and prepare a plan in order to solve the Year
2000 issue. In addition, the federal banking regulators have issued safety and
soundness guidelines to be followed by insured depository institutions, such as
the Bank, to assure resolution of any Year 2000 problems. The federal banking
agencies have asserted that Year 2000 testing and certification is a key safety
and soundness issue in conjunction with regulatory exams, and thus an
institution's failure to address appropriately the Year 2000 issue could result
in supervisory action, including such enforcement actions as the reduction of
the institution's supervisory ratings, the denial of applications for approval
of a merger or acquisition, or the imposition of civil money penalties.
In order to address the Year 2000 issue and to minimize its potential adverse
impact, management is engaged in a process to identify areas that will be
affected by the Year 2000, assess their potential impact on operations, monitor
the progress of third party software vendors in addressing the matter, test
changes provided by these vendors, and develop contingency plans for any
critical systems which are not effectively reprogrammed. The plan is divided
into the five phases: (1) awareness, (2) assessment, (3) renovations, (4)
validation, and (5) implementation.
First Savings has substantially completed the first three phases of the plan and
is currently working internally and with external vendors on the final two
phases. First Savings outsources its item processing operations to a service
provider. First Savings' Year 2000 compliance is being closely coordinated with
that of the service provider.
First Savings does not currently expect that the cost of its Year 2000
compliance program will be material to its financial condition or results of
operations, and expects that it will satisfy such compliance program without
material disruption of its operations. In the event that First Savings'
significant suppliers do not successfully and timely achieve Year 2000
compliance, First Savings' business, results of operations or financial
condition could be adversely affected.
10
<PAGE>
FIRST SAVINGS BANCORP, INC.
- ------------------------------------------------------------------------------
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, INC.
/s/ John F. Burns
____________________ -----------------
Date John F. Burns
President
/s/ Timothy S. Maples
____________________ ---------------------
Date Timothy S. Maples
Vice President/ Chief Financial Officer
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 9
<MULTIPLIER> 1,000
<S> <C> <C>
<PERIOD-TYPE> 3-MOS 9-MOS
<FISCAL-YEAR-END> JUN-30-1999 JUN-30-1999
<PERIOD-START> JAN-01-1999 JUL-01-1999
<PERIOD-END> MAR-31-1999 MAR-31-1999
<CASH> 2,667 2,667
<INT-BEARING-DEPOSITS> 18,740 18,740
<FED-FUNDS-SOLD> 0 0
<TRADING-ASSETS> 0 0
<INVESTMENTS-HELD-FOR-SALE> 50,204 50,204
<INVESTMENTS-CARRYING> 12,750 12,750
<INVESTMENTS-MARKET> 13,803 13,803
<LOANS> 206,617 206,617
<ALLOWANCE> 596 596
<TOTAL-ASSETS> 294,197 294,197
<DEPOSITS> 226,147 226,147
<SHORT-TERM> 0 0
<LIABILITIES-OTHER> 2,324 2,324
<LONG-TERM> 0 0
0 0
0 0
<COMMON> 30,749 30,749
<OTHER-SE> 34,977 34,977
<TOTAL-LIABILITIES-AND-EQUITY> 294,197 294,197
<INTEREST-LOAN> 4,117 12,511
<INTEREST-INVEST> 966 3,531
<INTEREST-OTHER> 173 300
<INTEREST-TOTAL> 5,256 16,243
<INTEREST-DEPOSIT> 2,414 7,654
<INTEREST-EXPENSE> 0 257
<INTEREST-INCOME-NET> 2,842 8,589
<LOAN-LOSSES> 0 0
<SECURITIES-GAINS> 0 0
<EXPENSE-OTHER> 1,033 3,029
<INCOME-PRETAX> 1,995 6,116
<INCOME-PRE-EXTRAORDINARY> 1,995 6,116
<EXTRAORDINARY> 0 0
<CHANGES> 0 0
<NET-INCOME> 1,261 3,866
<EPS-PRIMARY> 0.35 1.05
<EPS-DILUTED> 0.33 0.97
<YIELD-ACTUAL> 3.99 4.02
<LOANS-NON> 465 465
<LOANS-PAST> 0 0
<LOANS-TROUBLED> 0 0
<LOANS-PROBLEM> 0 0
<ALLOWANCE-OPEN> 596 596
<CHARGE-OFFS> 0 0
<RECOVERIES> 0 0
<ALLOWANCE-CLOSE> 596 596
<ALLOWANCE-DOMESTIC> 202 202
<ALLOWANCE-FOREIGN> 0 0
<ALLOWANCE-UNALLOCATED> 394 394
</TABLE>
