<PAGE>
FORM 10-QSB
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 June 30, 1996
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
- --- EXCHANGE ACT OF 1934
For the transition period from to .
--------------- ---------------
Commission File Number: 0-24194
-------
HARBOR FEDERAL BANCORP INC.
- --------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
MARYLAND 52-1860591
- --------------------------------------------------------------------------------
(State or other jurisdiction of incorporation (I.R.S. Employer
or organization) Identification No.)
705 York Road, Baltimore, Maryland 21204-2562
- --------------------------------------------- -------------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code : (401) 321-7041
-------------
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past ninety days. Yes X No
--- ---
As of June 30, 1996, 1,754,420 shares of the registrant's Common Stock, par
value $0.01 per share, were issued and outstanding.
Transitional small business disclosure format (check one):
YES NO X
--- ---
<PAGE>
HARBOR FEDERAL BANCORP, INC.
----------------------------
Baltimore, Maryland
-------------------
INDEX
-----
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
--------------------
Consolidated Statements of Financial Condition
-- As of June 30, 1996 (Unaudited) and March 31, 1996
Consolidated Statements of Operations -- (Unaudited)
for the three month period ended June 30, 1996 and 1995
Consolidated Statements of Cash Flows -- (Unaudited)
for the three months ended June 30, 1996 and 1995
Notes to (Unaudited) Consolidated Financial Statements
Item 2. Management's Discussion and Analysis of Financial
-------------------------------------------------
Condition and Results of Operations
-----------------------------------
PART II. OTHER INFORMATION
Item 1. Legal Proceedings
-----------------
Item 2. Changes in Securities
---------------------
Item 3. Defaults Upon Senior Securities
-------------------------------
Item 4. Submission of Matters to a Vote of Security Holders
---------------------------------------------------
Item 5. Other Information
-----------------
Item 6. Exhibits and Reports on Form 8-K
--------------------------------
2
<PAGE>
PART I. FINANCIAL INFORMATION
3
<PAGE>
HARBOR FEDERAL BANCORP, INC.
AND SUBSIDIARIES
Consolidated Statements of Financial Condition
<TABLE>
<CAPTION>
June 30, March 31.
------------- ------------
Assets 1996 1996
------ ---- ----
(Unaudited)
<S> <C> <C>
Cash:
On hand and due from banks $ 1,581,278 1,814,498
Interest-bearing deposits ---- 992,754
Short-term investments ---- 3,441,969
Investment securities, fair value
of $49,136,063 and $48,286,914,
respectively 49,828,272 48,738,919
Mortgage-backed securities, fair value
of $17,934,621 and $18,122,990
respectively 17,869,605 17,937,421
Loans receivable, net 124,483,937 116,891,985
Investment in Federal Home Loan Bank
stock, at cost 1,269,600 1,269,600
Investment in real estate, net 51,523 43,848
Investment in and advances to
affiliated corporation 2,825,000 2,825,000
Property and equipment, net 2,017,850 1,978,542
Prepaid expenses and other assets 737,302 621,663
Federal and state income taxes
receivable 365,825 205,564
------------ -----------
Total assets $201,030,192 196,761,763
============ ===========
Liabilities and Stockholders' Equity
------------------------------------
Liabilities:
Savings accounts $161,258,580 161,643,312
Borrowed funds 8,500,000 4,500,000
Advance payments by borrowers for
taxes, insurance and ground
rents 2,573,328 1,929,535
Accrued expenses and other
liabilities 915,754 799,822
------------ -----------
Total liabilities 173,247,662 168,872,669
------------ -----------
Stockholders' Equity:
Preferred stock $0.01 par value;
authorized 5,000,000 shares;
none issued and outstanding ------- ------
Common stock $0.01 par value;
authorized 20,000,000 shares;
1,754,420 and 1,754,420
shares issued 17,544 17,544
Additional paid-in capital 13,366,504 13,316,038
Contra equity - ESOP (1,363,250) (1,363,250)
Retained income, substantially
restricted 16,185,712 16,041,999
Net unrealized holding loss on
securities available for sale (423,980) (123,237)
------------ -----------
Total stockholders' equity 27,782,530 27,889,094
------------ -----------
Total liabilities and
stockholders' equity $201,030,192 196,761,763
============ ===========
See accompanying notes to consolidated financial statements.
</TABLE>
4
<PAGE>
HARBOR FEDERAL BANCORP, INC.
AND SUBSIDIARIES
Consolidated Statements of Income
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended
June 30,
---------------------------
1996 1995
---- ----
<S> <C> <C>
Interest income:
Loans receivable $2,337,434 2,040,828
Mortgage-backed securities 323,133 251,720
Investment securities 854,074 466,054
Interest-earning deposits and other
short-term investments 77,075 79,051
---------- ---------
Total interest income 3,591,716 2,837,653
---------- ---------
Interest expense:
Savings accounts:
Certificates 1,552,668 944,358
NOW and money market deposit accounts 266,960 196,543
Passbook and statement savings 269,824 192,738
---------- ---------
2,089,452 1,333,639
Interest on borrowings 80,988 25,625
---------- ---------
Total interest expense 2,170,440 1,359,264
---------- ---------
Net interest income 1,421,276 1,478,389
Provisions for loan losses ------ ------
---------- ---------
Net interest income after provision 1,421,276 1,478,389
for losses ---------- ---------
Noninterest income:
Loan fees and service charges 15,998 13,741
Other 58,779 21,975
---------- ---------
Total noninterest income 74,777 35,716
---------- ---------
Noninterest expense:
Compensation and benefits 580,430 572,542
Occupancy and equipment 104,303 74,198
SAIF deposit insurance premiums 72,274 69,133
Advertising 50,661 27,710
Other 168,429 173,396
---------- ---------
Total noninterest expense 976,098 916,979
---------- ---------
Income before income taxes 519,955 597,126
Income taxes 200,800 230,700
---------- ---------
Net income $ 319,155 366,426
========== =========
Net income per share of common stock:
Primary $.20 .19
---- ---
Fully-diluted $.20 .17
---- ---
See accompanying notes to consolidated financial statements.
</TABLE>
5
<PAGE>
HARBOR FEDERAL BANCORP, INC.
AND SUBSIDIARIES
Consolidated Statements of Cash Flows
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended
June 30,
----------------------------
1996 1995
---- ----
<S> <C> <C>
Cash flows from operating activities
Net income $ 319,155 366,426
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation 36,331 36,192
Amortization of premium on
savings deposits 95,346 ------
Non-cash compensation under
stock-based benefit plans (547) 151,563
Amortization of loan fees,
premiums and discounts, (34,388) (458)
Increase in prepaid
expenses and other assets (318,954) (90,399)
Increase in accrued
expenses and other
liabilities 193,337 45,985
Increase in federal and
state income taxes payable 230,051 160,395
Decrease (increase) in
accrued interest receivable (430,761) 15,380
Increase (decrease) in
accrued interest payable (17,405) 8,164
Net cash provided ----------- -----------
by operating
activities 72,165 693,248
----------- -----------
Cash flows from investing activities:
Maturities of investment securities
held to maturity ------ 1,000,000
Purchase of investment securities
available for sale (1,000,000) ------
Purchase of mortgage-backed
securities available for sale (4,996,875) (10,484,123)
Sale of mortgage-backed securities
available for sale 3,538,099 ------
Mortgage-backed securities
principal repayments held to
maturity 914,174 375,737
Mortgage-backed securities
principal repayments available for
sale 471,851 ------
Increase in investment in real
estate (7,675) ------
Loan principal disbursements, net
of repayments (4,592,449) 753,259
Loan purchases (2,970,880) (122,682)
Purchases of property and
equipment, net (75,639) (19,698)
Increase in investments in and advances
to affiliated corporation, net ------ (50,000)
----------- -----------
Net cash used in
investing activities $(8,719,394) (8,547,507)
----------- -----------
</TABLE>
(Continued)
6
<PAGE>
HARBOR FEDERAL BANCORP, INC.
AND SUBSIDIARIES
Consolidated Statements of Cash Flows
(Unaudited)
<TABLE>
<CAPTION>
1996 1995
---- ----
<S> <C> <C>
Cash flows from financing activities:
Net increase (decrease) in savings
deposits $ (480,168) 2,161,934
Repayment of borrowed funds ------ (2,000,000)
Increase in borrowed funds 4,000,000 9,000,000
Increase in advance payments by
borrowers for taxes, insurance
and ground rents 643,793 212,228
Purchase of stock to fund stock
option trust (8,987) ------
Purchase of treasury stock ------ (1,388,535)
Purchase of stock for management
recognition trust ------ (277,447)
Dividends paid (175,442) (109,004)
------------ -----------
Net cash provided by financing
activities 3,979,196 7,599,176
------------ -----------
Net decrease in cash and cash
equivalents (4,667,943) (255,083)
Cash and cash equivalents at beginning
of year 6,249,221 3,813,070
------------ -----------
Cash and cash equivalents at end of year $ 1,581,278 3,557,987
============ ===========
Supplemental information -- noncash
investing activities:
Increase in unrealized holding loss
on securities available for sale,
net of income tax effect $ (300,743) (2,526)
============ ===========
</TABLE>
See accompanying notes to consolidated financial statements.
7
<PAGE>
HARBOR FEDERAL BANCORP, INC.
AND SUBSIDIARIES
Notes to Consolidated Financial Statements
Three Months Ended June 30, 1996
(Unaudited)
Note 1 -- Business. The accompanying unaudited consolidated financial
--------
statements include the accounts of Harbor Federal Bancorp, Inc. (the "Company")
and wholly-owned subsidiaries, including Harbor Federal Savings Bank ("Harbor
Federal"). Harbor Federal provides a full range of banking services to
individual and corporate customers through its subsidiaries and branch banks in
Maryland. Harbor Federal is subject to competition from other financial
institutions. Harbor Federal is subject to the regulations of certain federal
agencies and undergoes periodic examinations by those regulatory authorities.
Note 2 -- Basis of Presentation. The accompanying unaudited consolidated
---------------------
financial statements were prepared in accordance with instructions for Form 10-
QSB and, therefore, do not include information or footnotes necessary for a
complete presentation of financial position, results of operations, retained
earnings, and cash flows in conformity with generally accepted accounting
principles. However, all adjustments, which in the opinion of management, are
necessary for a fair presentation of the consolidated financial statements at
and for the three months ended June 30, 1996 have been recorded.
In preparing the financial statements, management is required to make estimates
and assumptions that affect the reported amounts of assets and liabilities as of
the date of the statement of financial condition and revenues and expenses for
the period. The results of operations for the three months ended June 30, 1996
are not necessarily indicative of the results that may be expected for the
entire year ending March 31, 1997. Actual results could differ significantly
from those estimates.
Note 3 -- Principles of Consolidation. The accompanying unaudited consolidated
---------------------------
financial statements include the accounts of Harbor Federal Savings Bank, and
its wholly owned subsidiary, Harbor Service Corporation. All significant
intercompany items have been eliminated.
Note 4 -- Retained Earnings. Harbor Federal is required to maintain certain
-----------------
levels of regulatory capital. At June 30, 1996, Harbor Federal was in
compliance with all regulatory capital requirements. In addition to these
requirements, since the conversion Harbor Federal must maintain sufficient
capital for the "liquidation account" for the benefit of eligible account
holders. In the event of a complete liquidation of Harbor Federal, eligible
depositors would have an interest in the account.
Note 5 -- Earnings per Common Share. For the three months ended June 30, 1996,
-------------------------
primary and fully-diluted net income per share has been computed based on the
weighted average number of shares of common stock and common stock equivalents
outstanding of 1,630,226 shares and 1,630,226 shares respectively.
Note 6 -- Investment Securities. Investment securities available for sale
---------------------
included in total investment securities have a book and fair market value of
$22,409,636 at June 30, 1996 and $21,787,305 at March 31, 1996 and related
accrued interest of $482,808 at June 30, 1996 and $82,399 at March 31, 1996.
Note 7 -- Mortgage-Backed Securities. Mortgage-backed securities available for
--------------------------
sale included in mortgage-backed securities have a book and fair market value of
$8,801,298 at June 30, 1996 and $7,950,214 at March 31, 1996 and related accrued
interest of $54,267 at June 30, 1996 and $76,833 at March 31, 1996.
8
<PAGE>
HARBOR FEDERAL BANCORP, INC.
AND SUBSIDIARIES
Management's Discussion and Analysis of Financial Condition
and Results of Operations
The following discussion analyzes the financial condition of the Company at
June 30, 1996 and March 31, 1996 and the results of operations of the Company
for the three months ended June 30, 1996 and 1995.
Financial Condition
- -------------------
Harbor Federal's total assets increased by $4.2 million or 2.2% to $201.0
million at June 30, 1996 from $196.8 million at March 31, 1996. The increase in
total assets resulted from an increase in loans receivable of $7.6 million or
6.5% to $124.5 million at June 30, 1996 from $116.9 million at March 31, 1996.
This was partially funded by a $4.0 million or 88.9% increase in borrowed funds
to $8.5 million at June 30, 1996 from $4.5 million at March 31, 1996. Loan
production activity was strong during this period.
Short-term investments decreased by $3.4 million to zero at June 30, 1996
from $3.4 million at March 31, 1996.
Investment securities increased by $1.1 million or 2.2% to $49.8 million at
June 30, 1996 from $48.7 million at March 31, 1996.
Results of Operations
- ---------------------
The earnings of Harbor Federal depend primarily on its level of net
interest income, which is the difference between interest earned on Harbor
Federal's interest-earning assets, consisting primarily of mortgage loans,
mortgage-backed securities, interest-bearing deposits at other institutions,
investment securities and other investments, and the interest paid on interest-
bearing liabilities consisting primarily of savings accounts and borrowed funds.
Net income for the three months ended June 30, 1996 decreased $47,000 or 12.9%
to $319,000 from $366,000 for the three months ended June 30, 1995.
Interest Income. Total interest income increased by $754,000 or 26.6% to
$3.59 million for the three months ended June 30, 1996 from $2.84 million for
the three months ended June 30, 1995. The increase in interest income was
primarily attributable to a large increase in average loan receivables to $120.0
million for the quarter ended June 30, 1996 from $102.0 million for the quarter
ended June 30, 1995, a large increase in average investment securities to $49.6
million for the quarter ended June 30, 1996 from $26.1 million for the quarter
ended June 30, 1995 and an increase in average mortgage-backed securities to
$18.2 million for the quarter ended June 30, 1996 from $14.2 million for the
quarter ended June 30, 1995, partially offset by a decrease in the average yield
on Harbor Federal's average interest-earning assets to 7.43% for the three
months ended June 30, 1996 from 7.63% for the three months ended June 30, 1995.
These large increases in average interest-earning assets were primarily due to
the acquisition of three branches from Sequoia National Bank on February 16,
1996, which proceeds were used to acquire these assets.
Interest Expense. Total interest expense increased by $811,000 or 59.7% to
$2.17 million for the three months ended June 30, 1996 from $1.36 million for
the three months ended June 30, 1995. The increase was attributable to an
increase in average cost of Harbor Federal's deposits and borrowings to 5.19%
for the three months ended June 30, 1996 from 4.69% for the three months ended
June 30, 1995 and by a $51.3 million or 44.2% increase in average deposits and
borrowings to $167.3 million for the three months ended June 30, 1996 from
$116.0 million for the three months ended June 30, 1995. Most of the $48.0
million increase in average deposits came from the acquisition of three branches
from Sequoia National Bank.
Net Interest Income. Net interest income decreased by $57,000 or 3.86% to
$1.42 million for the three months ended June 30, 1996 from $1.48 million for
the three months ended June 30, 1995. The principal reason
9
<PAGE>
for the decrease in net interest income was a decrease in Harbor Federal's net
interest margin to 2.92% for the three months ended June 30, 1996 from 3.97% for
the three months ended June 30, 1995.
Provision for Losses. The Company maintains an allowance for loan losses
based on management's review and classification of the loan portfolio and
analyses of borrowers' ability to pay, past collection experience, risk
characteristics of individual loans or groups of similar loans and underlying
collateral, current and prospective economic conditions, status of non-
performing loans and regulatory reviews conducted in the regulatory examination
process. There was no provision for loan losses during the three months ended
June 30, 1996 or 1995. Based on the results of management's review and
analyses, it was concluded that the level of the allowance for losses on loans
as of March 31, 1996, net of charge offs and recoveries during the three months
ended June 30, 1996, remained adequate at June 30, 1996.
Non-Interest Income. Non-interest income increased by $39,100 or 109.4% to
$74,800 for the three months ended June 30, 1996 from $35,700 for the three
months ended June 30, 1995. The increase was primarily attributable to an
increase in ATM fees and NOW account fees. An ATM location was opened in Ocean
City, Maryland on the boardwalk in late May 1996 which accounts for this
increase in ATM fees. The acquisition of the branches from Sequoia National Bank
accounts for the increase in NOW account fees by 75%.
Non-Interest Expense. Non-interest expense increased by $59,000 or 6.4% to
$976,000 for the three months ended June 30, 1996, from $917,000 for the three
months ended June 30, 1995. The increase in non-interest expense resulted
primarily from increase in occupancy and equipment expense of $30,000 and
advertising expense of $23,000.
Liquidity and Capital Resources
- -------------------------------
Harbor Federal is required to maintain minimum levels of liquid assets as
defined by OTS regulations. This requirement, which varies from time to time
depending upon economic conditions and deposit flows, is based upon a percentage
of deposits and short-term borrowings. The required ratio currently is 5.0%.
Harbor Federal's liquidity ratio averaged 10.61% for the three months ended June
30, 1996. Harbor Federal adjusts its liquidity levels in order to meet funding
needs of deposit outflows, payment of real estate taxes on mortgage loans,
repayment of borrowings and loan commitments. Harbor Federal also adjusts
liquidity as appropriate to meet its asset and liability management objectives.
The Company's primary sources of funds are deposits, amortization and
prepayment of loans and mortgage-backed securities, maturities of investment
securities and other investments and earnings and funds provided from operations
and borrowings. While scheduled principal repayments on loans and mortgage-
backed securities are a relatively predictable source of funds, deposit flows
and loan prepayments are greatly influenced by general interest rates, economic
conditions, and competition. The Company manages the pricing of its deposits to
maintain a desired deposit balance. In addition, the Company invests in short-
term interest-earning assets, which provide liquidity to meet lending
requirements.
During the three months ended June 30, 1996, Harbor Federal's cash and cash
equivalents (cash and short-term investments with maturities less than 90 days)
decreased by $4.7 million.
The Company had $1.8 million in outstanding loan commitments at June 30,
1996. Harbor Federal expects to fund its loan origination's through principal
and interest payments on loans and mortgage-backed securities, proceeds from
investment and other securities as maturities occur, and to the extent
necessary, borrowed funds. Management expects that funds provided from these
sources will be adequate to meet the Company's needs.
10
<PAGE>
Impact of New Accounting Standards
- ----------------------------------
Impairment of Long-Lived Assets. In March 1995, the FASB issued SFAS No.
121 "Accounting for the Impairment of Long-Lived Assets and Long-Lived Assets to
Be Disposed Of." The statement is effective for years beginning after December
15, 1995 and requires, among other things, recognition of impairment of long-
lived assets, if any, based upon the difference between the undiscounted
expected future cash flows and the carrying value. Further, the statement
requires that long-lived assets to be disposed of be reported at the lower of
carrying amount or fair value less costs to sell. The Company adopted the
provisions of SFAS No. 121 on April 1, 1996 and management does not believe the
adoption of this statement will have a material effect on the Company's
financial position or result of operations.
Mortgage Servicing Rights. In May 1995, the FASB issued SFAS No. 122,
"Accounting for Mortgage Servicing Rights". SFAS No. 122 is effective for years
beginning after December 15, 1995. Earlier application is permitted. The
Statements will require, among other things, the Company to capitalize the
estimated fair market value of servicing rights on loans originated for sale,
and amortize such amount over the estimated servicing life of the loan. The
Company adopted the provisions of SFAS No. 122 on April 1, 1996 and has
determined that the effect of adoption on the Company's financial condition or
results of operations is immaterial.
Accounting for Stock-Based Compensation. In November 1995, the FASB issued
SFAS No. 123 "Accounting for Awards of Stock-based Compensation to Employees".
SFAS No. 123 is effective for years beginning after December 15, 1995. Earlier
application is permitted. The Statement defines a fair value based method of
accounting for an employee stock option or similar equity instrument and
encourages all entities to adopt that method of accounting for an employee stock
option compensation plans. However, it also allows an entity to continue to
measure compensation cost for those plans using the intrinsic value based method
of accounting prescribed by APB Opinion No. 25. "Accounting for Stock Issued to
Employees" ("Opinion 25"). Under the fair value based method, compensation cost
is measured at the grant date based on the value of the award and is recognized
over the service period, which is usually the vesting period. Under the
intrinsic value based method, compensation cost is the excess, if any, of the
quoted market price of the stock at the grant date or other measurement date
over the amount an employee must pay to acquire the stock. Most fixed stock
option plans - the most common type of stock compensation plan - have no
intrinsic value at grant date, and under Opinion 25 no compensation cost is
recognized for them. Compensation cost is recognized for other types of stock
based compensation plans under Opinion 25, including plans with variable,
usually performance-based, features. This Statement requires that an employer's
financial statements include certain disclosures about stock-based employee
compensation arrangements regardless of the method used to account for them.
The Company intends to continue using the intrinsic value method and will
provide the pro forma disclosures about its stock-based employee compensation
plans in its 1997 financial statements, as required by SFAS No. 123.
Recent Developments
- -------------------
Legislation recently passed by Congress and expected to be signed by the
President would repeal certain bad debt reserve provisions of the Internal
Revenue Code previously applicable to qualifying savings institutions, effective
for tax years beginning after December 31, 1995. Savings institutions that have
previously maintained a bad debt reserve for federal income tax purposes could
be required to recapture into taxable income certain post-1987 reserves over a
period of six years. While the exact amount and timing of any income recapture
that could required to be recognized by the Bank is uncertain at this time,
management does not believe that the net adverse effect on the Bank, if any,
would be in excess of approximately $335,000.
11
<PAGE>
PART II. OTHER INFORMATION
Item 1. Legal Proceedings
-----------------
From time to time Harbor Federal is a party to various
legal proceedings incident to its business. At June 30,
1996, there were no legal proceedings to which the Company,
Harbor Federal or its subsidiary was a party, or to which
any of their property was subject, which were expected by
management to result in a material loss.
Item 2. Changes in Securities
---------------------
None
Item 3. Defaults Upon Senior Securities
-------------------------------
None
Item 4. Submission of Matters to a Vote of Security Holders
---------------------------------------------------
None
Item 5. Other Information
---------------------------------------------------
None
Item 6. Exhibits and Reports on Form 8-K
--------------------------------
<TABLE>
<CAPTION>
(a) List of Exhibits
<S> <C> <C>
* 3.1 Articles of Incorporation of Harbor
Federal Bancorp, Inc.
* 3.2 Bylaws of Harbor Federal Bancorp, Inc.
* 4 Form of Common Stock Certificate of
Harbor Federal Bancorp, Inc.
** 10.1 Employment Agreements between Harbor
Federal Bancorp, Inc. and Harbor Federal
Savings Bank and Robert A. Williams,
as amended
** 10.2 Severance Agreements between Harbor
Federal Bancorp, Inc. and Harbor
Federal Savings Bank and Norbert J.
Luken and Lawrence W. Williams
** 10.3 Harbor Federal Savings Bank Non-Employee
Director Retirement Plan
* 10.4 Harbor Federal Savings Bank Deferred
Compensation Plan
* 10.5 Harbor Federal Savings Bank Supplemental
Executive Retirement Agreement
* 10.6 Harbor Federal Bancorp, Inc. Employee
Stock Ownership Plan, as amended
* 10.7 Harbor Federal Bancorp, Inc. Incentive
Compensation Plan, as amended
27 Financial Data Schedule
</TABLE>
* Incorporated by reference to Registration Statement on
Form S-1, No. 33-75624.
** Incorporated by reference to Quarterly Report on Form
10-QSB for quarterly period ended June 30, 1994.
(b) Form 8-K
An amendment to a report on Form 8-K was filed
during the quarter covered by this report. A Form
8-K/A (Amendment No. 1) dated February 16, 1996
and filed April 19, 1996 reported under Item 7
that the historical and pro forma financial
statement requirements
12
<PAGE>
would not be applicable to branch banking offices
that Harbor Federal had acquired from Sequoia
National Bank, Bethesda, Maryland, in the
Baltimore area with deposits totaling
approximately $44.1 million.
13
<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.
HARBOR FEDERAL BANCORP, INC.
Date: August 6, 1996 /s/ Robert A. Williams
-----------------------------------------
Robert A. Williams
President
(Duly Authorized Representative)
Date: August 6, 1996 /s/ Norbert J. Luken
-----------------------------------------
Norbert J. Luken
Treasurer
(Principal Financial Officer)
14
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 9
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> MAR-31-1996
<PERIOD-END> JUN-30-1996
<CASH> 1,581,278
<INT-BEARING-DEPOSITS> 0
<FED-FUNDS-SOLD> 0
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 31,748,009
<INVESTMENTS-CARRYING> 35,949,868
<INVESTMENTS-MARKET> 0
<LOANS> 124,483,937
<ALLOWANCE> 438,500
<TOTAL-ASSETS> 201,030,192
<DEPOSITS> 161,258,580
<SHORT-TERM> 8,500,000
<LIABILITIES-OTHER> 3,489,082
<LONG-TERM> 0
0
0
<COMMON> 17,544
<OTHER-SE> 27,764,986
<TOTAL-LIABILITIES-AND-EQUITY> 201,030,192
<INTEREST-LOAN> 2,337,434
<INTEREST-INVEST> 1,177,207
<INTEREST-OTHER> 77,075
<INTEREST-TOTAL> 3,591,716
<INTEREST-DEPOSIT> 2,089,452
<INTEREST-EXPENSE> 2,170,440
<INTEREST-INCOME-NET> 1,421,276
<LOAN-LOSSES> 0
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 976,098
<INCOME-PRETAX> 519,955
<INCOME-PRE-EXTRAORDINARY> 319,155
<EXTRAORDINARY> 0
<CHANGES> 0
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