SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) July 22, 1997
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MARSHALLTOWN FINANCIAL CORPORATION
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(Exact name of registrant as specified in its charter)
Delaware 0-23352 42-1413971
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(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
303 West Main Street, Marshalltown, Iowa 50158
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (515)754-6000
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(Former name or former address, if changed since last report.)
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Item 5. Other Events
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A press release announcing quarterly results was issued July 22,
1997.
A copy is attached as Exhibit 99.
Item 7. Financial Statements and Exhibits
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(c) Exhibits
99. Press release dated July 22, 1997
Signature
<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.
MARSHALLTOWN FINANCIAL CORPORATION
July 22, 1997 /s/ "William C. Gross"
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Date William C. Gross
Executive Vice President and
Chief Financial Officer
July 22, 1997 /s/ "Judy L. Roberts"
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Date Judy L. Roberts
Vice President and Treasurer
[logo]
MARSHALLTOWN FINANCIAL CORPORATION
For further information contact:
Kathy L. Baker (515)754-6000
MARSHALLTOWN FINANCIAL CORPORATION
ANNOUNCES QUARTERLY RESULTS
For release July 22, 1997
Marshalltown Financial Corporation (NASDAQ:MFCX) is the parent company of
Marshalltown Savings Bank, FSB, which operates three offices in central Iowa.
As previously announced on July 1, 1997, Marshalltown Financial Corporation
entered into a definitive agreement to merge with HMN Financial, Inc.
(NASDAQ:HMNF). Under the agreement, all outstanding shares of Marshalltown
Financial's common stock will be purchased by HMN Financial, Inc. for cash at
$17.51 per share. The agreement is subject to regulatory and shareholder
approval, a process that is expected to be completed by the end of the year.
For the nine-month period ended June 30, 1997, Marshalltown Financial
Corporation reported earnings of $666,580, or $.45 per share, compared to
earnings of $320,645, or $.22 per share, for the nine-month period ending
June 30, 1996. For the three-month period ended June 30, 1997, earnings of
$203,711 or $.14 per share were reported. This compares to earnings of
$201,803 or $.14 per share for the same period in 1996.
For both periods, an increase in net interest income combined with a
decrease in operating expense, the majority due to lower FDIC insurance
premiums, resulted in the increase in net income. For the nine-month period
ending June 30, 1997, there was also a substantial decrease in legal fees and
for the three-month period ending June 30, 1996 there was a nonrecurring gain
on the sale of the Company's interest in a regional service bureau.
Marshalltown Financial Corporation continues to maintain a strong balance
sheet with no nonperforming assets and capital substantially in excess of
regulatory requirements.
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MARSHALLTOWN FINANCIAL CORPORATION
CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
June 30, September 30,
1997 1996
(unaudited)
<S> <C> <C>
ASSETS
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Cash $ 5,896,103 $ 2,286,064
Investment securities held to maturity 10,992,712 9,484,506
Investment securities available for sale 2,407,313 2,314,172
Investment in limited partnerships 447,153 482,283
Mortgage-backed securities held to maturity 42,680,765 47,513,070
Loans receivable, net 63,406,893 60,284,275
Accrued interest receivable 809,295 747,918
Office properties and equipment, net 393,702 435,536
Income tax refund receivable 36,463 57,741
Real estate acquired for investment 396,691 406,187
Other assets 60,699 171,340
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TOTAL ASSETS $127,527,789 $124,183,092
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LIABILITIES
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Deposits $106,405,931 $103,039,698
Advances from borrowers for taxes
and insurance 259,982 22,870
Accrued interest payable 385,754 886,528
Accounts payable and accrued expenses 148,555 847,015
Income taxes:
Current 0 48,972
Deferred 253,855 0
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TOTAL LIABILITIES $107,454,077 $104,845,083
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STOCKHOLDERS' EQUITY
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Common stock $ 14,115 $ 14,115
Additional paid-in capital 10,599,090 10,599,090
Retained earnings, substantially restricted 9,568,694 8,902,114
Less deferred Recognition and
Retention Plan (132,716) (189,694)
Unrealized gain on securities available
for sale, net 24,529 12,384
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TOTAL STOCKHOLDERS' EQUITY $ 20,073,712 $ 19,338,009
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TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $127,527,789 $124,183,092
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</TABLE>
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MARSHALLTOWN FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
Three Months Nine Months
ended June 30, ended June 30,
1997 1996 1997 1996
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(Unaudited) (Unaudited)
<S> <C> <C> <C> <C>
Interest income:
Loans $ 1,224,190 $ 1,099,732 $ 3,620,531 $ 3,230,034
Mortgage-backed
securities 718,260 833,163 2,226,946 2,581,181
Investment securities 214,549 179,036 608,998 512,973
Other 51,601 69,380 157,439 246,750
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TOTAL INTEREST INCOME $ 2,208,600 $ 2,181,311 $ 6,613,914 $ 6,570,938
Interest expense:
Deposits $ 1,361,923 $ 1,380,266 $ 4,094,964 $ 4,200,153
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NET INTEREST INCOME $ 846,677 $ 801,045 $ 2,518,950 $ 2,370,785
Provision for losses on
loans 2,500 2,500 7,500 7,500
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NET INTEREST INCOME
AFTER PROVISION FOR
LOSSES ON LOANS $ 844,177 $ 798,545 $ 2,511,450 $ 2,363,285
Noninterest income:
Fees and service charges 12,515 17,429 41,710 46,805
Other, net 18,584 50,567 130,358 75,696
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TOTAL NONINTEREST
INCOME $ 31,099 $ 67,996 $ 172,068 $ 122,501
Noninterest expense:
Compensation and benefits$ 331,286 $ 328,975 $ 1,025,942 $ 999,668
Occupancy and equipment 46,802 47,776 145,237 148,466
SAIF deposit insurance
premiums 17,130 60,201 74,080 178,713
Data processing services 24,250 24,857 76,190 78,704
Other 125,497 120,776 449,740 533,662
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TOTAL NONINTEREST
EXPENSE $ 544,965 $ 582,585 $ 1,771,189 $ 1,939,213
INCOME BEFORE INCOME
TAXES $ 330,311 $ 283,956 $ 912,329 $ 546,573
Income tax expense 126,600 82,153 245,749 225,928
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NET INCOME $ 203,711 $ 201,803 $ 666,580 $ 320,645
========== ========== ========== ==========
Earnings per common share $ 0.14 $ 0.14 $ 0.45 $ 0.22
</TABLE>
