<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 September 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 No. 33-84132
COMMUNITY INVESTORS BANCORP, INC.
- -------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
Ohio 34-1779309
- ------------------------------- ----------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
119 South Sandusky Avenue
Bucyrus, Ohio 44820
- ------------------------------- ----------------------
(Address of principal (Zip Code)
executive office)
Registrant's telephone number, including area code: (419) 562-7055
--------
Check whether the issuer (1) has 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 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 November 8, 1996, the latest practicable date, 666,246 shares of the
registrant's common stock, without par value, were issued and outstanding.
Page 1 of 14 pages
<PAGE>
INDEX
PAGE
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PART I - FINANCIAL INFORMATION
Consolidated Statements of Financial Condition 3
Consolidated Statements of Operations 4
Consolidated Statements of Cash Flows 5
Notes to Consolidated Financial Statements 7
Management's Discussion and Analysis of
Financial Condition and Results of
Operations 9
PART II - OTHER INFORMATION 13
SIGNATURES 14
2
<PAGE>
COMMUNITY INVESTORS BANCORP, INC.
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(In thousands, except share data)
<TABLE>
<CAPTION>
SEPTEMBER 30, JUNE 30,
1996 1996
<S> <C> <C>
$99,999 $99,999
ASSETS
Cash and due from banks $ 1,406 $ 1,094
Federal funds sold - 21
Interest-bearing deposits in other financial institutions 467 794
-------- -------
Cash and cash equivalents 1,873 1,909
Investment securities available for sale - at market 7,231 6,201
Investment securities - at amortized cost, approximate market value of
$11,767 and $12,728 as of September 30, 1996 and June 30, 1996 11,970 12,891
Mortgage-backed securities - at amortized cost, approximate market value
of $2,163 and $2,794 as of September 30, 1996 and June 30, 1996 2,184 2,783
Loans receivable - net 69,554 66,255
Property acquired in settlement of loans 101 81
Office premises and equipment - at depreciated cost 568 525
Federal Home Loan Bank stock - at cost 625 575
Accrued interest receivable on loans 80 66
Accrued interest receivable on mortgage-backed securities 17 19
Accrued interest receivable on investments and interest-bearing deposits 375 251
Prepaid expenses and other assets 60 109
Prepaid federal income taxes 30 -
Deferred federal income taxes 131 122
-------- -------
Total assets $94,799 $91,787
-------- -------
-------- -------
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits $70,168 $69,911
Advances from the Federal Home Loan Bank 12,370 9,884
Advances by borrowers for taxes and insurance 11 6
Accrued interest payable 310 290
Other liabilities 621 156
Accrued federal income taxes - 54
-------- -------
Total liabilities 83,480 80,301
Stockholders' equity
Preferred stock, 1,000,000 shares authorized, no par value; no shares issued - -
Common stock, 4,000,000 shares authorized, $.01 par value; 738,146 shares issued 7 7
Additional paid-in capital 6,800 6,800
Retained earnings, restricted 6,629 6,796
Shares acquired by stock benefit plans (995) (995)
Less 71,900 shares of treasury stock - at cost (1,117) (1,117)
Unrealized loss on securities designated as available for sale, net of related
tax effects (5) (5)
-------- -------
Total stockholders' equity 11,319 11,486
-------- -------
Total liabilities and stockholders' equity $94,799 $91,787
-------- -------
-------- -------
</TABLE>
3
<PAGE>
COMMUNITY INVESTORS BANCORP, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
For the three months ended September 30,
(In thousands, except share data)
<TABLE>
<CAPTION>
1996 1995
---- ----
<S> <C> <C>
Interest income
Loans $1,429 $1,275
Mortgage-backed securities 39 57
Investment securities 299 283
Interest-bearing deposits and other 9 11
------ ------
Total interest income 1,776 1,626
Interest expense
Deposits 811 897
Borrowings 163 25
------ ------
Total interest expense 974 922
------ ------
Net interest income 802 704
Provision for losses on loans 46 51
------ ------
Net interest income after provision
for losses on loans 756 653
Other income
Gain (loss) on sale of other repossessed assets 1 (3)
Other operating 25 30
------ ------
Total other income 26 27
General, administrative and other expense
Employee compensation and benefits 161 163
Occupancy and equipment 30 25
Federal deposit insurance premiums 502 40
Franchise taxes 33 19
Expenses of property acquired in settlement of loans 19 9
Data processing 42 34
Other operating 123 111
------ ------
Total general, administrative and other expense 910 401
------ ------
Earnings (loss) before income taxes (credits) (128) 279
Federal income taxes (credits)
Current (16) 91
Deferred (9) 4
------ ------
Total federal income taxes (credits) (25) 95
------ ------
NET EARNINGS (LOSS) $ (103) $ 184
------ ------
------ ------
EARNINGS (LOSS) PER SHARE $(.17) $ .27
------ ------
------ ------
</TABLE>
4
<PAGE>
COMMUNITY INVESTORS BANCORP, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the three months ended September 30,
(In thousands)
<TABLE>
<CAPTION>
1996 1995
---- ----
<S> <C> <C>
Cash flows from operating activities:
Net earnings (loss) for the period $ (103) $ 184
Adjustments to reconcile net earnings (loss) to net cash
provided by (used in) operating activities:
Amortization of discounts and premiums on loans,
investments and mortgage-backed securities - net (5) 2
Amortization of deferred loan origination fees (25) (39)
Depreciation and amortization 7 7
Provision for losses on loans 46 51
(Gain) loss on sale of other repossessed assets (1) 3
Federal Home Loan Bank stock dividends - (8)
Increase (decrease) in cash due to changes in:
Accrued interest receivable on loans (14) (18)
Accrued interest receivable on mortgage-backed securities 2 2
Accrued interest receivable on investments and
interest-bearing deposits (124) 74
Prepaid expenses and other assets 49 (73)
Accrued interest payable 20 9
Other liabilities 465 15
Federal income taxes
Current (84) 49
Deferred (9) 4
------- -------
Net cash provided by operating activities 224 262
Cash flows provided by (used in) investing activities:
Proceeds from maturity of investment securities 1,426 2,694
Proceeds from sale of securities designated as available for sale - 297
Purchase of investment securities designated as available for sale (1,030) -
Purchase of investment securities designated as held to maturity (500) (1,050)
Principal repayments on mortgage-backed securities 599 842
Loan principal repayments 4,630 2,868
Loan disbursements (7,999) (4,429)
Purchase of office premises and equipment (50) (70)
Proceeds from sale of other repossessed assets 30 52
Purchase of Federal Home Loan Bank stock (50) -
------- -------
Net cash provided by (used in) investing activities (2,944) 1,204
------- -------
Net cash provided by (used in) operating and investing
activities (subtotal carried forward) (2,720) 1,466
------- -------
</TABLE>
5
<PAGE>
COMMUNITY INVESTORS BANCORP, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)
For the three months ended September 30,
<TABLE>
<CAPTION>
1996 1995
---- ----
<S> <C> <C>
Net cash provided by (used in) operating and investing
activities (subtotal brought forward) $(2,720) $ 1,466
Cash flows provided by (used in) financing activities:
Net increase in deposit accounts 257 392
Proceeds from Federal Home Loan Bank advances 2,500 -
Repayment of Federal Home Loan Bank advances (14) (19)
Advances by borrowers for taxes and insurance 5 1
Dividends on common stock (64) (29)
------- -------
Net cash provided by financing activities 2,684 345
------- -------
Net increase (decrease) in cash and cash equivalents (36) 1,811
Cash and cash equivalents at beginning of year 1,909 1,077
------- -------
Cash and cash equivalents at end of year $ 1,873 $2,888
------- -------
------- -------
Supplemental disclosure of cash flow information:
Cash paid during the year for:
Federal income taxes $ 100 $ 35
------- -------
------- -------
Interest on deposits and borrowings $ 954 $ 913
------- -------
------- -------
Supplemental disclosure of noncash investing activities:
Transfers from loans to other repossessed assets $ 62 $ 30
------- -------
------- -------
Unrealized gain on securities designated as available
for sale, net of related tax effects $ - $ 8
------- -------
------- -------
</TABLE>
6
<PAGE>
COMMUNITY INVESTORS BANCORP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
For the three months ended September 30, 1996 and 1995
1. 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
consolidated financial position, results of operations and cash flows in
conformity with generally accepted accounting principles. Accordingly, these
financial statements should be read in conjunction with the consolidated
financial statements and notes thereto of the Corporation included in the
Annual Report on Form 10-KSB for the year ended June 30, 1996. However, in
the opinion of management, all adjustments (consisting of only normal
recurring accruals) which are necessary for a fair presentation of the
financial statements have been included. The results of operations for the
three month periods ended September 30, 1996 and 1995 are not necessarily
indicative of the results which may be expected for an entire fiscal year.
2. Principles of Consolidation
The accompanying consolidated financial statements include the accounts of
Community Investors Bancorp, Inc. (the Corporation) and First Federal Savings
and Loan Association of Bucyrus (the Association). All significant
intercompany items have been eliminated.
3. Earnings Per Share
Earnings per share for the three months ended September 30, 1996 and 1995 is
based upon the weighted-average shares outstanding during the period plus
those stock options that are dilutive, less shares in the ESOP that are
unallocated and not committed to be released. Weighted-average common shares
deemed outstanding, which gives effect to 53,147 unallocated ESOP shares,
totaled 613,099 and 682,045 for the three months ended September 30, 1996 and
1995, respectively. There is no dilutive effect associated with the
Corporation's stock option plan.
4. Effects of Recent Accounting Pronouncements
In October 1995, the Financial Accounting Standards Board (FASB) issued
Statement of Financial Accounting Standards (SFAS) No. 123, "Accounting for
Stock-Based Compensation", establishing financial accounting and reporting
standards for stock-based employee compensation plans. SFAS No. 123
encourages all entities to adopt a new method of accounting to measure
compensation cost of all employee stock compensation plans based on the
estimated fair value of the award at the date it is granted. Companies are,
however, allowed to continue to measure compensation cost for those plans
using the intrinsic value based method of accounting, which generally does
not result in compensation expense recognition for most plans. Companies
that elect to remain with the existing accounting are required to disclose in
a footnote to the financial statements pro forma net earnings and, if
presented, earnings per share, as if SFAS No. 123 had been adopted. The
accounting
7
<PAGE>
COMMUNITY INVESTORS BANCORP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
For the three months ended September 30, 1996 and 1995
4. Effects of Recent Accounting Pronouncements (continued)
requirements of SFAS No. 123 are effective for transactions entered into
during fiscal years that begin after December 15, 1995; however, companies
are required to disclose information for awards granted in their first fiscal
year beginning after December 15, 1994. Management has determined that the
Corporation will continue to account for stock-based compensation pursuant to
Accounting Principles Board Opinion No. 25, and therefore the disclosure
provisions of SFAS No. 123 will have no effect on its consolidated financial
condition or results of operations.
In June 1996, the FASB issued SFAS No. 125, "Accounting for Transfers of
Financial Assets, Servicing Rights, and Extinguishment of Liabilities", that
provides accounting guidance on transfers of financial assets, servicing of
financial assets, and extinguishment of liabilities. SFAS No. 125 introduces
an approach to accounting for transfers of financial assets that provides a
means of dealing with more complex transactions in which the seller disposes
of only a partial interest in the assets, retains rights or obligations,
makes use of special purpose entities in the transaction, or otherwise has
continuing involvement with the transferred assets. The new accounting
method, the financial components approach, provides that the carrying amount
of the financial assets transferred be allocated to components of the
transaction based on their relative fair values. SFAS No. 125 provides
criteria for determining whether control of assets has been relinquished and
whether a sale has occurred. If the transfer does not qualify as a sale, it
is accounted for as a secured borrowing. Transactions subject to the
provisions of SFAS No. 125 include, among others, transfers involving
repurchase agreements, securitizations of financial assets, loan
participations, factoring arrangements, and transfers of receivables with
recourse.
An entity that undertakes an obligation to service financial assets
recognizes either a servicing asset or liability for the servicing contract
(unless related to a securitization of assets, and all the securitized assets
are retained and classified as held-to-maturity). A servicing asset or
liability that is purchased or assumed is initially recognized at its fair
value. Servicing assets and liabilities are amortized in proportion to and
over the period of estimated net servicing income or net servicing loss and
are subject to subsequent assessments for impairment based on fair value.
SFAS No. 125 provides that a liability is removed from the balance sheet only
if the debtor either pays the creditor and is relieved of its obligation for
the liability or is legally released from being the primary obligor.
SFAS No. 125 is effective for transfers and servicing of financial assets and
extinguishment of liabilities occurring after December 31, 1996, and is to be
applied prospectively. Earlier or retroactive application is not permitted.
Management does not believe that adoption of SFAS No. 125 will have a
material adverse effect on the Corporation's consolidated financial position
or results of operations.
8
<PAGE>
COMMUNITY INVESTORS BANCORP, INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
Discussion of Financial Condition Changes from June 30, 1996 to September 30,
1996
At September 30, 1996, the Corporation's assets totaled $94.8 million, an
increase of $3.0 million, or 3.3%, over the $91.8 million of total assets at
June 30, 1996. The increase in assets was funded through growth in the
deposit portfolio of $257,000 coupled with an increase in advances from the
Federal Home Loan Bank of $2.5 million.
Liquid assets (i.e. cash, interest-bearing deposits and investment
securities) increased by $73,000 over the three month period, to a total of
$21.1 million at September 30, 1996, as investment securities purchases of
$1.5 million were partially offset by maturities totaling $1.4 million.
Regulatory liquidity amounted to 15.4%, at September 30, 1996.
Loans receivable increased by $3.3 million, or 5.0%, during the three month
period, to a total of $69.6 million at September 30, 1996. Loan
disbursements amounted to $8.0 million and were partially offset by principal
repayments of $4.6 million. The allowance for loan losses totaled $448,000
at September 30, 1996, as compared to $459,000 at June 30, 1996.
Nonperforming loans totaled $729,000 at September 30, 1996, as compared to
$636,000 at June 30, 1996. The allowance for loan losses represented 61.5%
of nonperforming loans as of September 30, 1996 and 72.2% at June 30, 1996.
Although management believes that its allowance for loan losses at September
30, 1996 is adequate based upon facts and circumstances available to it,
there can be no assurances that additions to such allowance will not be
necessary in future periods, which could adversely affect the Corporation's
results of operations.
Deposits totaled $70.2 million at September 30, 1996, an increase of
$257,000, or .4%, over June 30, 1996 levels. Management continued its
conservative pricing strategy with respect to deposit accounts during the
current interest rate environment.
The Association is required to meet each of three minimum capital standards
promulgated by the Office of Thrift Supervision (OTS), hereinafter described
as the tangible capital requirement, the core capital requirement and the
risk-based capital requirement. The tangible capital requirement mandates
maintenance of stockholders' equity less all intangible assets equal to 1.5%
of adjusted total assets. The core capital requirement provides for the
maintenance of tangible capital plus certain forms of supervisory goodwill
equal to 3% of adjusted total assets, while the risk-based capital
requirement mandates maintenance of core capital plus general loan loss
allowances equal to 8% of risk-weighted assets as defined by OTS regulations.
At September 30, 1996, the Association's tangible and core capital totaled
$9.6 million, or 10.3% of adjusted total assets, which exceeded the minimum
requirements of $1.4 million and $2.8 million by $8.2 million and $6.8
million, respectively. The Association's risk-based capital of $10.0
million, or 21.5% of risk-weighted assets, exceeded the current 8%
requirement by $6.3 million.
9
<PAGE>
COMMUNITY INVESTORS BANCORP, INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS (CONTINUED)
Comparison of Operating Results for the Three Month Periods Ended September
30, 1996 and 1995
General
The Corporation reported a net loss totaling $103,000 for the three months
ended September 30, 1996, a decrease of $287,000, or 156.0%, from the
$184,000 of net earnings reported for the same period in 1995. The decline
in earnings resulted primarily from a $461,000 charge recorded in the current
quarter reflecting the assessment to recapitalize the Savings Association
Insurance Fund (SAIF), coupled with a $48,000 increase in general,
administrative and other expense, which were partially offset by a $98,000
increase in net interest income and a $120,000 decrease in the provision for
federal income taxes.
Net Interest Income
Net interest income increased by $98,000, or 13.9%, for the three months
ended September 30, 1996, compared to the 1995 period. Interest income on
loans and mortgage-backed securities increased by $136,000, or 10.2%, due
primarily to a $6.5 million increase in the average balance of loans
outstanding year-to-year. Interest income on investment securities and
interest-bearing deposits increased by $14,000, or 4.8%, due primarily to a
$1.4 million increase in the average portfolio balance outstanding.
Interest expense on deposits decreased by $86,000, or 9.6%, due primarily to
a decline in the cost of deposits year-to-year. Interest expense on
borrowings increased by $138,000 during the current quarter, due primarily to
a $9.6 million increase in advances from the Federal Home Loan Bank.
As a result of the foregoing changes in interest income and interest expense,
net interest income increased by $98,000, or 13.9%, to a total of $802,000
for the three months ended September 30, 1996. The interest rate spread
increased to approximately 2.94% from 2.75% during the respective 1996 and
1995 quarters, while the net interest margin increased to approximately 3.50%
in 1996, as compared to 3.40% in 1995.
Provision for Losses on Loans
A provision for losses on loans is charged to earnings to bring the total
allowance for loan losses to a level considered appropriate by management
based on historical experience, the volume and type of lending conducted by
the Association, the status of past due principal and interest payments,
general economic conditions, particularly as such conditions relate to the
Association's market area, and other factors related to the collectibility of
the Association's loan portfolio. As a result of such analysis, management
recorded a $46,000 provision for losses on loans during the three month
period ended September 30, 1996. There can be no assurance that the loan
loss allowance of the Association will be adequate to absorb losses on known
nonperforming assets or that the allowance will be adequate to cover losses
on nonperforming assets in the future.
10
<PAGE>
COMMUNITY INVESTORS BANCORP, INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS (CONTINUED)
Comparison of Operating Results for the Three Month Periods Ended September
30, 1996 and 1995 (continued)
Other Income
Other income decreased by $1,000, or 3.7%, for the three months ended
September 30, 1996, compared to the same period in 1995, due primarily a
decline in service charges and fees on loans and deposits.
General, Administrative and Other Expense
General, administrative and other expense increased by $509,000, or 126.9%,
during the three months ended September 30, 1996, compared to the same period
in 1995. This increase resulted primarily from the $461,000 charge recorded
in 1996 attendant to the aforementioned SAIF recapitalization. The deposit
accounts of the Association and of other savings associations are insured by
the FDIC in the SAIF. The reserves of the SAIF are below the level required
by law, because a significant portion of the assessments paid into the fund
are used to pay the cost of prior thrift failures. The deposit accounts of
commercial banks are insured by the FDIC in the Bank Insurance Fund ("BIF"),
except to the extent such banks have acquired SAIF deposits. The reserves of
the BIF met the level required by law in May 1995. As a result of the
respective reserve levels of the funds, deposit insurance assessments paid by
healthy savings associations exceeded those paid by healthy commercial banks
by approximately $.19 per $100 in deposits in 1995. In 1996, no BIF
assessments are required for healthy commercial banks except for a $2,000
minimum fee.
Congress enacted legislation to recapitalize the SAIF and eliminate the
significant premium disparity. The recapitalization plan provides for a
special assessment of $.657 per $100 of SAIF deposits held at March 31, 1995,
in order to increase SAIF reserves to the level required by law. In
addition, there will be a partial sharing of the Financing Corporation bond
obligations among SAIF and BIF members beginning on January 1, 1997. This
would likely increase BIF assessments by $.02 to $.025 per $100 in deposits.
SAIF assessments would initially be set at the same level as BIF assessments
and could never be reduced below the level for BIF assessments.
The Association had $70.2 million in deposits at March 31, 1995. The special
assessment level was finalized at $.657 per $100 in deposits, resulting in an
assessment totaling $461,000, or $304,000 after-tax.
A component of the recapitalization plan provides for the merger of the SAIF
and BIF on January 1, 1999, if no insured depository institution is a savings
association on that date. If the Association is required to convert to a
bank charter, the Corporation would become a bank holding company which would
subject it to the more restrictive activity limits imposed on bank holding
companies. Under recently enacted legislation, the Association is required
to recapture, as taxable income, approximately $26,000 of
11
<PAGE>
COMMUNITY INVESTORS BANCORP, INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS (CONTINUED)
Comparison of Operating Results for the Three Month Periods Ended September
30, 1996 and 1995 (continued)
General, Administrative and Other Expense (continued)
its percentage of earnings bad debt deduction, which represents post-1987
additions, and would be unable to utilize the percentage of earnings method
to compute its bad debt deduction in the future. The Association has
provided deferred taxes for this amount and is permitted to amortize the
recapture of its percentage of earnings bad debt deduction over six years.
Additionally, the increase in general, administrative and other expense
resulted from a $14,000, or 73.7%, increase in franchise taxes, an $8,000, or
23.5%, increase in data processing and a $12,000, or 10.8%, increase in other
operating expense. Such increases resulted primarily from the Corporation's
growth year-to-year. The special one-time assessment to recapitalize the
SAIF is expected to cause federal deposit insurance premiums to be
significantly reduced in future quarters, beginning January 1, 1997.
Federal Income Taxes
The provision for federal income taxes declined by $120,000, or 126.3%, for
the three months ended September 30, 1996, as compared to the same period in
1995. This decline resulted primarily from the decrease in net earnings
before taxes of $407,000, or 145.9%. The effective tax rates were 19.5% and
34.1% for the three months ended September 30, 1996 and 1995, respectively.
12
<PAGE>
COMMUNITY INVESTORS BANCORP, INC.
PART II
ITEM 1. Legal Proceedings
Not applicable
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
None
ITEM 5. Other Materially Important Events
None
ITEM 6. Exhibits and Reports on Form 8-K
None
13
<PAGE>
COMMUNITY INVESTORS 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.
Date: November 12, 1996 By:
--------------------------- ----------------------------------
John W. Kennedy
President and Chief
Executive Officer
Date: November 12, 1996 By:
--------------------------- ----------------------------------
Robert W. Siegel
Chief Financial Officer
14
<PAGE>
COMMUNITY INVESTORS 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.
Date: November 12, 1996 By: /s/John W. Kennedy
----------------------------- ----------------------------------
John W. Kennedy
President and Chief
Executive Officer
Date: November 12, 1996 By: /s/Robert W. Siegel
----------------------------- ----------------------------------
Robert W. Siegel
Chief Financial Officer
14
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 9
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> JUN-30-1996
<PERIOD-START> JUL-1-1996
<PERIOD-END> SEP-30-1996
<CASH> 1,406
<INT-BEARING-DEPOSITS> 467
<FED-FUNDS-SOLD> 0
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 7,231
<INVESTMENTS-CARRYING> 14,154
<INVESTMENTS-MARKET> 13,930
<LOANS> 69,554
<ALLOWANCE> 448
<TOTAL-ASSETS> 94,799
<DEPOSITS> 70,168
<SHORT-TERM> 0
<LIABILITIES-OTHER> 942
<LONG-TERM> 12,370
0
0
<COMMON> 7
<OTHER-SE> 11,312
<TOTAL-LIABILITIES-AND-EQUITY> 94,799
<INTEREST-LOAN> 1,429
<INTEREST-INVEST> 338
<INTEREST-OTHER> 9
<INTEREST-TOTAL> 1,776
<INTEREST-DEPOSIT> 811
<INTEREST-EXPENSE> 974
<INTEREST-INCOME-NET> 802
<LOAN-LOSSES> 46
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 910
<INCOME-PRETAX> (128)
<INCOME-PRE-EXTRAORDINARY> (103)
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (103)
<EPS-PRIMARY> (.17)
<EPS-DILUTED> (.17)
<YIELD-ACTUAL> 7.83
<LOANS-NON> 0
<LOANS-PAST> 729
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 221
<ALLOWANCE-OPEN> 459
<CHARGE-OFFS> 1
<RECOVERIES> 0
<ALLOWANCE-CLOSE> 448
<ALLOWANCE-DOMESTIC> 35
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 413
</TABLE>
