<PAGE>
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
____________________________
FORM 10-QSB
(X) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended December 31, 1996
OR
( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
--------- ---------
WEST TOWN BANCORP, INC.
-----------------------
(Exact name of small business issuer as specified in its charter)
United States 36-3785272
------------- ---------------
(State or other jurisdiction I.R.S. Employer
of incorporation or Identification
organization) Number
4852 WEST 30TH STREET, CICERO, ILLINOIS 60650-3699
- --------------------------------------- -----------
(Address of Principal executive offices) (Zip Code)
Issuer's telephone number, including area code: (708) 652-2000
--------------
Check whether the issuer (1) filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such
shorter period that the issuer was required to file such reports), and (2) has
been subject to such filing requirements for the past 90 days.
Yes X No
--------- ---------
Transitional Small Business Disclosure Format
Yes No X
--------- ---------
As of February 7, 1997, the issuer had 231,928 shares of Common stock
issued and outstanding; see accompanying notes.
<PAGE>
WEST TOWN BANCORP, INC.
Part I. FINANCIAL INFORMATION PAGE
----
Item 1. Financial Statements
Consolidated Statements of Financial Condition
December 31, 1996 (unaudited) and
March 31, 1996 3
Consolidated Statements of Income, Three
And Nine Months Ended December 31, 1996 and 1995
(unaudited) 4
Consolidated Statements of Cash Flows, Nine
Months Ended December 31, 1996 and 1995
(unaudited) 5
Notes to Financial Statements 6-8
Item 2. Management's Discussion and Analysis or Plan of
Operation 9-11
Part II. OTHER INFORMATION 12
Signatures 13
Index to Exhibits 14
Earnings Per Share Analysis(Exhibit 11) 15
-2-
<PAGE>
WEST TOWN BANCORP, INC.
AND SUBSIDIARIES
----------------
Consolidated Statements of Financial Condition
<TABLE>
<CAPTION>
December 31, March 31,
1996 1996
------------- -----------
Assets (unaudited)
- ------
<S> <C> <C>
Cash and amounts due from
depository institutions $ 725,873 596,646
Interest-bearing deposits 6,110,491 6,717,247
---------- ----------
Total cash and cash equivalents 6,836,364 7,313,893
U.S. Government and agency obligations
(fair value: December 31, 1996 - $1,088,000;
March 31, 1996 - $1,079,000) 1,100,671 1,101,740
Mortgage-backed securities
(fair value: December 31, 1996 - $2,630,000;
March 31, 1996 - $3,057,000) 2,638,719 3,086,260
Loans receivable (net of allowance for
loan losses: December 31, 1996 - $38,671;
March 31, 1996 - $29,869) 15,327,901 12,933,140
Foreclosed real estate - 211,876
Stock in Federal Home Loan Bank of Chicago 121,000 121,000
Accrued interest receivable 121,391 144,062
Office properties and equipment - net 205,681 218,008
Prepaid expenses and other assets 306,865 145,537
---------- ----------
Total assets 26,658,592 25,275,516
========== ==========
Liabilities and Stockholders' Equity
- ------------------------------------
Liabilities
- -----------
Deposits 22,433,575 21,208,719
Advance payments by borrowers for taxes
and insurance 85,151 48,033
Other liabilities 227,089 176,760
---------- ----------
Total liabilities 22,745,815 21,433,512
---------- ----------
Stockholders' Equity
- --------------------
Preferred stock, $.01 par value; authorized
100,000 shares; none outstanding - -
Common stock, $.01 par value; authorized
400,000 shares; 231,928 shares issued
and outstanding at December 31, 1996;
230,818 shares issued and outstanding
at March 31, 1996 2,319 2,308
Additional paid-in capital 1,986,077 1,974,988
Retained earnings, substantially restricted 2,095,939 2,063,536
Common stock acquired by Employee Stock Ownership Plan (156,209) (165,389)
Common stock acquired by Management Recognition Plan (15,349) (33,439)
---------- ----------
Total stockholders' equity 3,912,777 3,842,004
---------- ----------
Total liabilities and stockholders' equity $26,658,592 25,275,516
========== ==========
</TABLE>
See accompanying notes to consolidated financial statements.
-3-
<PAGE>
WEST TOWN BANCORP, INC.
AND SUBSIDIARIES
----------------
Consolidated Statements of Income
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
December 31, December 31,
------------------ ---------------------
1996 1995 1996 1995
--------- ------- ---------- ---------
(unaudited) (unaudited)
<S> <C> <C> <C> <C>
Interest income:
Loans $277,908 194,271 788,882 586,219
Mortgage-backed securities 40,060 50,332 129,694 158,198
Investment securities 14,672 17,344 44,223 51,363
Interest-bearing deposits 93,459 111,757 283,758 344,385
Dividends on FHLB stock 2,010 2,352 6,105 6,779
-------- ------- --------- ---------
Total interest income 428,109 376,056 1,252,662 1,146,944
-------- ------- --------- ---------
Interest expense:
Deposits 238,581 191,502 688,714 571,621
-------- ------- --------- ---------
Net interest income before
provision for loan losses 189,528 184,554 563,948 575,323
Provision for loan losses 1,500 3,651 8,802 10,953
-------- ------- --------- ---------
Net interest income after
provision for loan losses 188,028 180,903 555,146 564,370
-------- ------- --------- ---------
Non-interest income:
Loan fees and service charges 3,578 5,929 5,322 15,874
Loss on sale of real estate owned - - (5,282) -
Commission income 20 116 188 568
Deposit related fees and other income 5,891 5,342 17,167 17,878
-------- ------- --------- ---------
Total non-interest income 9,489 11,387 17,395 34,320
-------- ------- --------- ---------
Non-interest expense:
Staffing costs 72,991 81,301 215,802 250,767
Advertising 3,627 2,835 9,773 7,989
Occupancy and equipment expense 21,979 19,404 66,698 53,235
Data processing 8,053 8,738 24,658 25,609
Federal deposit insurance premiums - 11,014 150,622 34,474
Legal, audit and examination
services 11,244 6,212 29,697 25,983
Other 9,313 14,923 34,213 46,995
-------- ------- --------- ---------
Total non-interest expense 127,207 144,427 531,463 445,052
-------- ------- --------- ---------
Income before income taxes 70,310 47,863 41,078 153,638
Provision for income taxes 21,420 15,945 8,675 52,977
-------- ------- --------- ---------
Net income $ 48,890 31,918 32,403 100,661
======== ======= ========= =========
Earnings per share - primary $ .23 .15 .15 .48
-------- ------- --------- ---------
Earnings per share - fully diluted $ .23 .15 .15 .48
-------- ------- --------- ---------
Dividends declared per common share $ - - - -
-------- ------- --------- ---------
</TABLE>
See accompanying notes to consolidated financial statements.
-4-
<PAGE>
WEST TOWN BANCORP, INC.
AND SUBSIDIARIES
----------------
Consolidated Statement of Cash Flows
Cash flows from operating activities:
<TABLE>
<CAPTION>
Nine Months Ended
December 31,
-------------------------
1996 1995
---- ----
(unaudited)
<S> <C> <C>
Net income $ 32,403 100,661
Adjustments to reconcile net income to net cash
from operating activities:
Depreciation 18,164 17,276
Amortization of cost of stock benefit plans 27,270 58,907
Loss on sale real estate owned 5,282 -
Amortization of investment premiums and discounts 1,069 1,069
Provision for loan losses 8,802 10,953
Increase (decrease) in deferred income 27,510 (11,853)
Increase (decrease) in current and deferred income tax (42,344) 35,181
(Increase) decrease in accrued interest receivable 22,671 (44,088)
Increase (decrease) in accrued interest payable 75,536 (7,907)
Change in prepaid and accrued items, net (144,191) (101,994)
----------- ----------
Net cash provided by operating activities 32,172 58,205
----------- ----------
Cash flows from investing activities:
Proceeds from repayments of mortgage-backed
securities 447,541 410,122
Disbursements for loans originated or purchased (3,822,823) (1,445,522)
Loan repayments 1,391,750 1,587,506
Proceeds from sale of real estate owned 207,504 -
Property and equipment expenditures (5,837) (6,124)
Real estate owned expenditures (910) (2,876)
----------- ----------
Net cash provided by (for) investing activities (1,782,775) 543,106
----------- ----------
Cash flows from financing activities:
Deposit account receipts 7,143,597 5,879,969
Deposit account withdrawals (6,334,344) (6,512,201)
Interest credited to deposit accounts 415,603 441,242
Increase in advance payments by borrowers
for taxes and insurance 37,118 21,096
Proceeds from exercise of stock options 11,100 -
----------- ----------
Net cash provided by (for) financing activities 1,273,074 (169,894)
----------- ----------
Increase (decrease) in cash and cash equivalents (477,529) 431,417
Cash and cash equivalents at beginning of period 7,313,893 8,368,148
----------- ----------
Cash and cash equivalents at end of period $ 6,836,364 8,799,565
=========== ==========
Cash paid during the period for:
Interest $ 613,178 579,528
Income taxes 51,019 17,796
=========== ==========
</TABLE>
See accompanying notes to consolidated financial statements.
-5-
<PAGE>
WEST TOWN BANCORP, INC.
AND SUBSIDIARIES
Notes to Financial Statements
Note A - BASIS OF PRESENTATION
---------------------
The accompanying unaudited consolidated financial statements have been
prepared in accordance with instructions to Form 10-QSB and,
therefore, do not include information or footnotes necessary for fair
presentation of financial condition, results of operations and changes
in financial position in conformity with generally accepted accounting
principles. However, in the opinion of management, all adjustments
(which are normal and recurring in nature) necessary for a fair
presentation have been included. The preparation of financial
statements in conformity with generally accepted accounting principles
requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities and disclosures of
contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during
the reporting period. Actual results could differ from those
estimates. The results of operations for the three and nine month
periods ended December 31, 1996, are not necessarily indicative of the
results which may be expected for the entire year.
Note B - PRINCIPLES OF CONSOLIDATION
---------------------------
The accompanying unaudited consolidated financial statements include
the accounts of West Town Bancorp, Inc. (the "Company") and its wholly
owned subsidiary West Town Savings Bank (the "Bank") and the Bank's
wholly owned subsidiary West Town Insurance Agency, Inc. All
significant intercompany accounts and transactions have been
eliminated in consolidation.
Note C - PLAN OF CONVERSION
------------------
In April 1995, the Bank's Board of Directors approved a Plan of
Conversion, providing for the Bank's conversion from a state chartered
mutual savings bank to a state chartered stock savings bank with the
concurrent formation of a holding company. The Company issued 221,940
shares of $.01 par value common stock at $10.00 per share, for an
aggregate purchase price of $2,219,400. The Conversion and sale of
221,940 shares of common stock of the Company was completed on March
1, 1995. Net proceeds to the Company, after conversion expenses,
totaled approximately $1,889,000.
Note D - EARNINGS PER SHARE
------------------
Earnings per share for the periods ended December 31, 1996 and 1995
was determined by dividing net income for the period by the weighted
average number of both primary and fully diluted shares of common
stock and common stock equivalents outstanding. Stock options are
regarded as common stock equivalents and are therefore considered in
both primary and fully diluted earnings per share calculations. Common
stock equivalents are computed using the treasury stock method.
-6-
<PAGE>
Notes to Financial Statements (continued)
- -----------------------------------------
Note E - EFFECT OF NEW ACCOUNTING STANDARDS
----------------------------------
ACCOUNTING FOR THE IMPAIRMENT OF LONG-LIVED ASSETS. Statement of
Financial Accounting Standards No. 121 ("SFAS 121"), "Accounting for
the Impairment of Long-Lived Assets and Long-Lived Assets to be
Disposed of," is effective for fiscal years beginning after December
15, 1995. The statement requires that long-lived assets and certain
identifiable intangibles to be held and used by an entity be reviewed
for impairment whenever events or changes in circumstances indicate
that the carrying amount of an asset may not be recoverable. An
impairment loss is recognized if the sum of the expected future cash
flows is less than the carrying amount of the asset. The Company
adopted SFAS 121 effective April 1, 1996, resulting in no material
impact on the Company's consolidated financial condition or results of
operations.
ACCOUNTING FOR MORTGAGE SERVICING RIGHTS. In May 1995, the FASB issued
Statement of Financial Accounting Standards No. 122 ("SFAS 122"),
"Accounting for Mortgage Servicing Rights." This statement amends
Statement of Financial Accounting Standards No. 65 ("SFAS 65"),
"Accounting for Certain Mortgage Banking Activities", to require that
a mortgage banking enterprise recognize as separate assets rights to
service mortgage loans for others, however those servicing rights are
acquired. SFAS 122 requires that a mortgage banking enterprise assess
its capitalized mortgage servicing rights for impairment based on the
fair value of those rights. SFAS 122 is effective for fiscal years
beginning after December 15, 1995. The Bank adopted SFAS 122 effective
April 1, 1996, resulting in no material effect on the Company's
consolidated financial condition or results of operations.
ACCOUNTING FOR STOCK-BASED COMPENSATION. In October 1995 the FASB
issued Statement of Financial Accounting Standards No. 123 ("SFAS
123"), "Accounting for Stock-Based Compensation." This statement
establishes a value-based method of accounting for stock options which
encourages employers to account for stock compensation awards based on
their fair value at the date the awards are granted. The resulting
compensation award would be shown as an expense on the income
statement.
SFAS 123 also permits entities to continue to use the intrinsic value
method contained in Accounting Principles Board Opinion No. 25,
"Accounting for Stock Issued to Employees," (the "APB Opinion No. 25
Method"), allowing them to continue to apply current accounting
requirements, which generally result in no compensation cost for most
fixed stock-option plans. If the intrinsic value method is retained,
SFAS 123 requires significantly expanded disclosures, including
disclosure of the pro forma amount of net income and earnings per
share as if the fair value-based method were used to account for stock
based compensation. SFAS 123 is effective for fiscal years beginning
after December 15, 1995, however, employers will be required to
include in that year's financial statements, information about options
granted in 1995. The Company has determined that it will continue to
apply the APB Opinion No. 25 method in preparing its consolidated
financial statements.
-7-
<PAGE>
Notes to Financial Statements (continued)
- -----------------------------------------
Note E - EFFECT OF NEW ACCOUNTING STANDARDS (CONTINUED)
----------------------------------------------
ACCOUNTING FOR TRANSFERS AND SERVICING OF FINANCIAL ASSETS AND
EXTINGUISHMENTS OF LIABILITIES. In June 1996, the FASB issued SFAS No.
125 ("SFAS 125"), "Accounting for Transfers and Servicing of Financial
Assets and Extinguishments of Liabilities." This statement, among
other things, applies a "financial-components approach" that focuses
on control, whereby an entity recognizes the financial and servicing
assets it controls and the liabilities it has incurred, derecognizes
assets when control has been surrendered, and derecognizes liabilities
when extinguished. SFAS 125 provides consistent standards for
distinguishing transfers of financial assets that are sales from
transfers that are secured borrowings. SFAS 125 is effective for
transfers and servicing of financial assets and extinguishments of
liabilities occurring after December 31, 1996. The Company does not
anticipate that this pronouncement will have a significant impact on
its consolidated financial condition or results of operations.
The foregoing does not constitute a comprehensive summary of all
material changes or developments affecting the manner in which the
Company keeps its books and records and performs its financial
accounting responsibilities. It is intended only as a summary of some
of the recent pronouncements made by the FASB which are of particular
interest to financial institutions.
Note F - SAIF SPECIAL ASSESSMENT AND ITS IMPACT ON SAIF INSURANCE PREMIUMS
-----------------------------------------------------------------
The deposits of savings associations, such as West Town Savings, are
presently insured by the Savings Association Insurance Fund ("SAIF"),
which together with the Bank Insurance Fund ("BIF"), are the two
insurance funds administered by the Federal Deposit Insurance
Corporation ("FDIC"). Financial institutions which are members of the
BIF are experiencing substantially lower deposit insurance premiums
because the BIF has achieved its required level of reserves while the
SAIF has not yet achieved its required reserves. In order to help
eliminate this disparity and any competitive disadvantage due to
disparate deposit insurance premium schedules, legislation to
recapitalize the SAIF was enacted in September 1996.
The legislation required a special one-time assessment of 65.7 cents
per $100 of SAIF insured deposits held by the Bank at March 31, 1995.
The one-time special assessment resulted in a charge to earnings of
approximately $128,000 during the nine month period ended December 31,
1996. The after-tax effect of this one time charge to earnings totaled
approximately $81,000. The legislation is intended to fully
recapitalize the SAIF fund so that commercial bank and thrift deposits
will be charged the same FDIC premiums beginning January 1, 1997. As
of such date, deposit insurance premiums for highly rated
institutions, such as the Bank, have been substantially reduced.
The Bank, however, will continue to be subject to an assessment to
fund repayment of the Financing Corporation's ("FICO") obligations.
The FICO assessment for SAIF insured institutions will be 6.48 cents
per $100 of deposits while BIF insured institutions will pay 1.30
cents per $100 of deposits until the year 2000 when the assessment
will be imposed at the same rate on all FDIC insured institutions.
Accordingly, as a result of the reduction of the SAIF assessment and
the resulting FICO assessment, the annual after-tax decrease in
assessment costs is expected to be approximately $22,000 based upon a
December 31, 1996 assessment base.
-8-
<PAGE>
WEST TOWN BANCORP, INC.
AND SUBSIDIARIES
MANAGEMENT'S DISCUSSIONS AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Financial Condition
- -------------------
The assets of West Town Bancorp, Inc. (the "Company") increased
approximately $1.4 million, or 5.47%, for the nine month period ended December
31, 1996. This increase was primarily the result of an increase in mortgage
loans receivable held by West Town Savings Bank (the "Bank"), which was
primarily funded by excess cash liquidity resulting from increased deposits for
the nine month period ended December 31, 1996.
Net loans receivable increased $2.4 million, or 18.52%, for the nine months
ended December 31, 1996. During that period, the Bank originated or purchased
approximately $3.8 million in loans which exceeded repayments of $1.4 million
during the same period.
The Bank experienced an increase in savings deposits for the nine month
period of approximately $1.2 million, or 5.78%. It is management's belief that
part of the deposit activity for the nine months ended December 31, 1996 can be
attributed to new deposit products.
Stockholders' equity increased approximately $71,000, or 1.84%, for the
nine month period ended December 31, 1996. This increase was primarily the
result of proceeds from the exercise of stock options of $11,000, and
amortization of the cost of the Company's stock benefit plans of $27,000, and
net income for the nine months of $32,000. As of December 31, 1996, the book
value per common share outstanding was $16.87.
Analysis of Operations
- ----------------------
A net profit of $49,000 was recognized for the three months ended December
31, 1996 as compared to net income of $32,000 for the same period in 1995. This
$17,000 increase in net income was due primarily to an increase in net interest
income of $5,000, a $2,000 decrease in the provision for loan losses, and a
decrease in non-interest expense of $17,000, partially offset by a decrease in
non-interest income of $2,000, and an increase in income taxes of $5,000. The
Company's net income for the nine months ended December 31, 1996 was $32,000 as
compared to net income of $101,000 for the nine months ended December 31, 1995.
This $69,000 decrease in net income was due primarily to an $11,000 decrease in
net interest income, a $17,000 decrease in non-interest income, and an $86,000
increase in non-interest expense (primarily due to SAIF special assessment),
partially offset by a $2,000 decrease in the provision for loan losses, and a
$44,000 decrease in income taxes.
Interest income increased by $52,000 and $106,000 for the three and nine
months ended December 31, 1996, respectively, as compared to the three and nine
months ended December 31, 1995. This was primarily a result of an increase in
the average balances of interest-earning assets partially offset by declines in
the average yield on average interest-earning assets. The average balances of
those assets grew from approximately $21.8 million to $25.1 million for the
three months ended December 31, 1995 and 1996, respectively, and from $21.8
million to $24.6 million for the nine months ended December 31, 1995 and 1996,
respectively. The average yield on average interest-earning assets declined from
6.92% for the three months ended December 31, 1995 to 6.82% for the three months
ended December 31, 1996. The average yield on average interest earning assets
declined to 6.80% for the nine months ended December 31, 1996 from 7.02% for the
nine months ended December 31, 1995.
Interest expense increased from $192,000 to $239,000 for the three months
ended December 31, 1995 compared to the same period in 1996. For the nine months
ended December 31, 1995 interest expense was $572,000 as compared to $689,000
for the same nine months in 1996. These increases were attributable to increases
in the average balances of interest-bearing liabilities and increases in the
average yield on those liabilities. The average balances increased approximately
$2.7 million and $2.3 million for the three and nine months ended December 31,
1996 as compared to the average balances at December 31, 1995, respectively. The
average yield on average interest-bearing liabilities increased from 4.01% and
3.97% for the three and nine months ended December 31, 1995 to 4.27% and 4.38%
for the three and nine months ended December 31, 1996.
-9-
<PAGE>
Analysis of Operations (continued)
- ----------------------------------
The Bank calculates any allowance for loan losses based upon its ongoing
evaluation of pertinent factors underlying the types and quality of its loans,
including the risk inherent in its loan portfolio, and other factors such as the
current regulatory and economic environment. Based upon this evaluation, loan
loss provisions are recorded. Provisions of $1,500 and $3,651 were made for the
three month periods ended December 31, 1996 and 1995 respectively, and
provisions of $8,802 and $10,953 were made for the nine month periods ended
December 31, 1996 and 1995 respectively. Management believes that additions to
its provision for loan losses have been appropriate, given the risks inherent in
its loan portfolio, and the current regulatory and economic environment.
Although the Bank believes its allowance for loan losses is at a level which it
considers to be adequate to provide for potential losses, there can be no
assurance that such losses will not exceed the estimated amounts.
Non-interest income decreased by $2,000 for the three months ended December
31, 1996 as compared to the same period in 1995. Non-interest income decreased
by $17,000 for the nine months ended December 31, 1996 as compared to the same
period in 1995. These decreases were primarily attributable to declines in loan
related fee income for both periods and a $5,000 loss recognized on the sale of
foreclosed real estate for the nine month period.
Non-interest expense decreased from $144,000 to $127,000 from the three
months ended December 31, 1995 to the three months ended December 31, 1996. The
decrease was attributable to a reduction in federal deposit premiums due to a
refund of prior assessments, reduced staffing costs and a reduction in other
expenses, partially offset by increases in professional services. Non-interest
expense increased from $445,000 to $531,000 from the nine months ended December
31, 1995 to the nine months ended December 31, 1996. The increase was primarily
the result of a $128,000 charge, reflected in the 1996 period, for the special
insurance assessment charged by FDIC to recapitalize the Savings Association
Insurance Fund. Occupancy and advertising expenses also increased in the 1996
periods as compared to the same periods in 1995. These increases were partially
offset by declines in other expenses, and staffing costs.
The provision for income taxes increased $5,000 for the three months ended
December 31, 1996 as compared to the same period in 1995. The provision
decreased by $44,000 for the nine months ended December 31, 1996 as compared to
the same period in 1995. These changes are the direct result of changes in pre-
tax income between the comparable periods.
-10-
<PAGE>
Liquidity and Capital Resources
- -------------------------------
At December 31, 1996, the Bank continued to comply with its liquidity
requirements, with an overall liquid asset ratio of 26.83% and a short-term
liquid assets ratio of 20.75%. Management's objectives and strategies for the
Bank have consistently maintained liquidity levels in excess of regulatory
requirements. It is management's intent to continue its efforts to deploy excess
liquidity into mortgage loans and mortgage-backed securities; however, the
success of lending efforts is dependent upon the availability of favorable loan
opportunities and the competition therefor. At December 31, 1996, the Bank had
no commitments to purchase mortgage-backed securities or other investment
securities.
The Bank is committed at December 31, 1996, to participate in a revolving
construction loan, with a $2,000,000 maximum participation, for the construction
of single family dwellings. Disbursements made in connection with this
participation will be made at the Prime Interest Rate in effect at the time,
plus 1.0%. The Bank is also committed to sell 57.5% of its' interest in the
above participation.
The Bank was in compliance with regulatory capital requirements at December
31, 1996. Capital requirements, ratios, and balances are as follows:
<TABLE>
<CAPTION>
Percent of
Amount Assets (2) Requirement Excess
------ ---------- ----------- ------
(Dollars in thousands)
<S> <C> <C> <C> <C>
Regulatory Capital
Ratios at
December 31, 1996: (1)
Core..................... $2,879 11.17% $773 $2,106
Risk-based............... 2,918 27.80 840 2,078
- -----------------
</TABLE>
(1) Current capital requirements as of December 31, 1996 consist of a core
capital ratio of 3.00% and a risk-based capital ratio of 8.00%.
(2) Core capital levels are shown as a percentage of total adjusted assets;
risk-based capital levels are shown as a percentage of risk-weighted
assets.
-11-
<PAGE>
PART II - OTHER INFORMATION
WEST TOWN BANCORP INC.
AND SUBSIDIARIES
Item 1. LEGAL PROCEEDINGS
-----------------
From time to time, the Company and Bank are parties to legal
proceedings in the ordinary course of business, wherein they enforce
their security interest. The Company and Bank are not engaged in any
legal proceedings of a material nature at the present time.
Item 2. CHANGES IN SECURITIES
---------------------
Not applicable
Item 3. DEFAULTS UPON SENIOR SECURITIES
-------------------------------
Not applicable
Item 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
---------------------------------------------------
Not applicable
Item 5. OTHER INFORMATION
-----------------
Not applicable
Item 6. EXHIBITS AND REPORTS ON FORM 8-K
--------------------------------
(a) Computation of earnings per share (Exhibit 11 filed herewith)
(b) No reports on Form 8-K were filed during the quarter ended
December 31, 1996.
-12-
<PAGE>
SIGNATURES
Pursuant to the requirements of Section 13 or 15 (d) of the Securities and
Exchange Act of 1934, the Registrant has duly caused this report to be signed on
its behalf by the undersigned, thereunto duly authorized.
WEST TOWN BANCORP, INC.
-----------------------
Registrant
DATE: February 7, 1997
BY: /s/ Dennis B. Kosobucki
----------------------------------
Dennis B. Kosobucki
Chairman of the Board,
President and Chief Executive Officer
(Duly Authorized Representative and
Principal Executive Officer)
BY: /s/ Jeffrey P. Kosobucki
----------------------------------
Jeffrey P. Kosobucki
Vice President and Chief Financial Officer
(Principal Financial Officer)
-13-
<PAGE>
INDEX TO EXHIBITS
Exhibit No. PAGE
- ----------- ----
11 Statement regarding Computation of Earnings Per Share 15
-14-
<PAGE>
EXHIBIT 11
STATEMENT REGARDING COMPUTATION OF EARNINGS PER SHARE
<TABLE>
<CAPTION>
Three Months Nine Months
Ended Ended
December 31, 1996 December 31, 1996
----------------- -----------------
<S> <C> <C>
Net Income $ 48,890 32,403
====== ======
Weighted average shares outstanding 231,928 231,250
Reduction for common shares not yet released
by Employee Stock Ownership Plan (15,778) (16,084)
Common stock equivalents due to dilutive
effect of stock options * *
------- -------
Total weighted average common shares and
equivalents outstanding 216,150 215,166
======= =======
Primary earnings per share $ 0.23 0.15
==== ====
Total weighted average common shares and
equivalents outstanding for primary
computation 216,150 215,166
Additional dilutive shares using the end of
period market value versus the average
market value when applying the treasury
stock method ** **
------- -------
Total weighted average common shares and
equivalents outstanding for fully diluted
computation 216,150 215,166
======= =======
Fully diluted earnings per share $ 0.23 0.15
==== ====
</TABLE>
* Note: The market value of the stock at December 31, 1996 was $10.00, the
same as the stock option exercise price; therefore, no common stock
equivalents are computed.
** Note: If average share price is greater than ending price, use average
price for both primary and fully diluted calculation. This
adjustment does not apply because the average price and the ending
price at December 31, 1996 are the same as the option exercise price
of $10.00 per share.
-15-
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 9
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> MAR-31-1997
<PERIOD-START> APR-01-1996
<PERIOD-END> DEC-31-1996
<CASH> 725,873
<INT-BEARING-DEPOSITS> 6,110,491
<FED-FUNDS-SOLD> 0
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 0
<INVESTMENTS-CARRYING> 3,739,390
<INVESTMENTS-MARKET> 3,718,000
<LOANS> 15,327,901
<ALLOWANCE> (38,671)
<TOTAL-ASSETS> 26,658,592
<DEPOSITS> 22,433,575
<SHORT-TERM> 0
<LIABILITIES-OTHER> 227,089
<LONG-TERM> 0
<COMMON> 2,319
0
0
<OTHER-SE> 3,910,458
<TOTAL-LIABILITIES-AND-EQUITY> 26,658,592
<INTEREST-LOAN> 788,882
<INTEREST-INVEST> 180,022
<INTEREST-OTHER> 283,758
<INTEREST-TOTAL> 1,252,662
<INTEREST-DEPOSIT> 688,714
<INTEREST-EXPENSE> 688,714
<INTEREST-INCOME-NET> 563,948
<LOAN-LOSSES> 8,802
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 531,463
<INCOME-PRETAX> 41,078
<INCOME-PRE-EXTRAORDINARY> 32,403
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 32,403
<EPS-PRIMARY> .15
<EPS-DILUTED> .15
<YIELD-ACTUAL> 3.06
<LOANS-NON> 0
<LOANS-PAST> 0
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 29,869
<CHARGE-OFFS> 0
<RECOVERIES> 0
<ALLOWANCE-CLOSE> 38,671
<ALLOWANCE-DOMESTIC> 38,671
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
