UNITED STATES
SECURITY 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 June 30, 1999
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: 0-24896
Home Building Bancorp, Inc.
(Exact name of registrant as specified in its charter)
Indiana
(State or other jurisdiction of incorporation or organization)
35-1935840
(I.R.S. Employer identification No.)
200 East VanTrees Street, Washington, Indiana 47501
(Address of principal executive offices) (Zip Code)
(812) 254-2641
(Registrant's telephone number, including area code)
N/A
(Former name, former address and former fiscal year, if changed since last
report)
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 shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing for the
past 90 days. {X}Yes{ } No
As of August 11, 1999 there were 331,660 shares of the Registrant's common
stock issued and outstanding. Indicate the number of shares outstanding of
each of the issuer's classes of common stock as of the latest practicable
date.
Transitional Small Business Disclosure Format:
{ } Yes {X} No
<page
HOME BUILDING BANCORP, INC.
INDEX
Part I. Financial Information Page
Item 1. Financial Statements (Unaudited)
Consolidated Statements of Financial Condition at June 30, 1999 1
and September 30, 1998
Consolidated Statements of Income for the three and nine months 2
ended June 30, 1999 and 1998
Consolidated Statements of Comprehensive Income for the three 3
and nine months ended June 30, 1999 and 1998
Consolidated Statements of Cash Flows for the nine months ended 4
June 30, 1999 and 1998
Notes to Consolidated Financial Statements 5
Item 2. Management's Discussion and Analysis of Financial Condition 8
and Results of Operations
Part II. Other Information 12
Signatures 13
Index of Exhibits 14
<PAGE>
Part I - Financial Information
Item 1. Financial Statements (Unaudited)
<TABLE>
<CAPTION>
Home Building Bancorp, Inc.
Washington, Indiana
Consolidated Statements of Financial Condition
(Unaudited)
June 30, Sept. 30,
1999 1998
ASSETS
<S> <C> <C>
Cash and due from banks $ 944,314 $ 1,366,761
Interest-bearing deposits with banks 5,771,675 4,238,977
Securities available for sale 4,619,997 5,443,539
Securities held to maturity, fair market
value of $153,000 at June 30, and
$230,000 at Sept. 30 152,357 228,059
Loans receivable, net of allowance for loan
losses of $86,000 at June 30, and $92,249
at Sept. 30 36,008,229 32,659,339
Accrued interest receivable 222,638 226,102
Premises and equipment 745,720 759,343
Other assets 318,169 180,465
Total assets $48,783,099 $45,102,585
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Savings and NOW deposits $11,574,769 $10,713,887
Other time deposits 23,915,886 21,452,629
Total deposits 35,490,655 32,166,516
Advances from Federal Home Loan Bank 6,827,415 6,327,415
Accrued expenses and other liabilities 341,905 436,809
Total liabilities 42,659,975 38,930,740
Shareholders' equity:
Common stock, $.01 par value,
1 million shares authorized,
331,660 issued and outstanding 3,317 3,317
Additional paid-in capital 3,098,062 3,088,095
Treasury stock, at cost (605,000) (345,000)
Retained earnings 3,821,783 3,618,107
Net unrealized gain on available for
sale securities, net of deferred tax of
$17,440 at June 30, and $13,827 at Sept. 30 (26,160) 20,741
Unearned ESOP & recognition and retention shares (168,878) (213,415)
Total shareholders' equity 6,123,124 6,171,845
Total liabilities and shareholders' equity $48,783,099 $45,102,585
<FN>
The accompanying notes are an integral part of these consolidated financial statements.
</TABLE>
- -1-
<PAGE>
<TABLE>
<CAPTION>
Home Building Bancorp, Inc.
Washington, Indiana
Consolidated Statements of Income
(Unaudited)
Three months ended Nine months ended
June 30, June 30,
1999 1998 1999 1998
Interest income:
<S> <C> <C> <C> <C>
Loans receivable $ 681,355 $ 644,989 $2,020,169 $ 1,880,978
Investments 34,484 40,605 89,100 144,483
Mortgage-backed securities 47,829 75,341 161,207 229,456
Deposits with other banks 82,595 53,940 217,546 183,082
Total interest income 846,263 814,875 2,488,022 2,437,999
Interest expense:
Deposits 369,695 378,178 1,106,410 1,131,503
Other borrowed funds 85,329 87,769 258,047 211,992
Total interest expense 455,024 465,917 1,364,457 1,343,495
Net interest income 391,239 348,958 1,123,565 1,094,504
Provision for loan losses - 10,000 15,000 17,000
Net interest income after provision
for loan losses 391,239 338,958 1,108,565 1,077,504
Noninterest income:
Gain on sale of assets 12 126 10,396 17,238
Customer service fees 46,156 65,298 135,539 135,810
Total other income 46,168 65,424 145,935 153,048
Noninterest expenses:
Salaries and employee benefits 159,279 163,643 469,715 460,446
Occupancy and equipment 34,948 36,432 107,382 107,062
Deposit insurance premium 5,188 5,526 14,967 16,233
Computer expense 9,961 13,059 44,337 40,953
Service fees 14,794 12,870 46,295 40,578
Advertising expense 16,223 13,938 44,207 43,220
Professional fees 9,996 17,714 43,504 56,079
Other expense 30,644 36,966 91,708 118,862
Total other expenses 281,033 300,148 862,115 883,433
Income before income taxes 156,374 104,234 392,385 347,119
Income tax expense 47,073 27,254 121,962 116,984
Net income $ 109,301 $ 76,980 $ 270,423 $ 230,135
Basic earnings per share of common stock $ 0.39 $ 0.26 $ 0.96 $ 0.79
Weighted average shares outstanding 281,056 291,367 283,157 290,173
Diluted earnings per share of
common stock $ 0.39 $ 0.26 $ 0.96 $ 0.78
Diluted weighted average shares
outstanding 281,056 296,381 283,157 295,187
<FN>
The accompanying notes are an integral part of these consolidated financial statements.
</TABLE>
- -2-
<PAGE>
<TABLE>
<CAPTION>
Home Building Bancorp, Inc.
Washington, Indiana
Consolidated Statements of Comprehensive Income
(Unaudited)
Three months ended Nine months ended
June 30, June 30,
1999 1998 1999 1998
<S> <C> <C> <C> <C>
Net income $ 109,301 $ 76,980 $ 270,423 $ 230,135
Other comprehensive income,
net of income tax:
Unrealized holding gains and (losses) (35,429) 3,903 (46,901) 12,903
Comprehensive income $ 73,872 $ 80,883 $ 223,522 $ 243,038
<FN>
The accompanying notes are an integral part of these consolidated financial statements.
</TABLE>
3
<PAGE>
<TABLE>
<CAPTION>
Home Building Bancorp, Inc.
Washington, Indiana
Consolidated Statements of Cash Flows
(Unaudited)
Nine months ended June 30,
1999 1998
Cash flows from operating activities:
<S> <C> <C>
Net income $ 270,423 $ 230,135
Adjustments to reconcile net income to net cash
provided by (used by) operating activities:
Depreciation and amortization 29,040 29,594
Non cash compensation 54,504 78,890
Other gains and losses, net (10,396) (9,929)
Net realized gains on available-
for-sale securities - (7,309)
Decrease in insurance receivable - 1,950
Increase in accrued interest receivable 3,464 (12,980)
Increase (decrease) in accrued expenses
and other liabilities (70,977) 26,092
(Increase) decrease in other assets (109,867) (24,217)
Provision for loan loss 15,000 17,000
Total adjustments (89,232) 99,091
Net cash provided by operating activities 181,191 329,226
Cash flows from investing activities:
Net increase (decrease) in interest-bearing
deposits with banks (1,532,698) 177,947
Purchases of available-for-sale securities (1,300,127) (957,647)
Proceeds from maturities of available-
for-sale securities 2,035,400 1,897,224
Proceeds from sales of available-
for-sale securities - 258,653
Proceed from maturities of held-to-
maturity securities 75,702 82,263
Net increase in loans (3,363,890) (4,583,790)
Net purchases of premises and equipment (15,417) (10,560)
Net cash used in investing activities (4,101,030) (3,135,910)
Cash flows from financing activities:
Net increase in savings and NOW deposit accounts 860,882 243,859
Net increase (decrease) in time deposits 2,463,257 (117,848)
Net decrease in securities sold under
agreements to repurchase (260,000) -
Proceeds from Federal Home Loan Bank advances 500,000 2,500,000
Dividends paid (66,747) (70,124)
Net cash provided by financing activities 3,497,392 2,555,887
Net decrease in cash and due from banks (422,447) (250,797)
Cash and due from banks at beginning of period 1,366,761 1,494,118
Cash and due from banks at end of period $ 944,314 $ 1,243,321
Cash paid for:
Interest $ 1,370,849 $ 1,330,072
Income taxes $ 220,234 $ 180,831
<FN>
The accompanying notes are an integral part of these consolidated financial statements.
</TABLE>
<PAGE>
- -4-
Home Building Bancorp, Inc.
Washington, Indiana
Notes to Consolidated Financial Statements
June 30, 1999 and 1998
Note 1: Basis of Presentation
The unaudited information for the three and nine months ended June 30, 1999
and June 30, 1998, includes the results of operations of Home Building Bancorp,
Inc. (the "Company") and its wholly owned subsidiary, Home Building Savings
Bank, FSB (the "Bank"). In the opinion of management of the Company, the
financial statements reflect all adjustments (consisting only of normal
recurring adjustments) necessary to present fairly the consolidated financial
statements. These interim financial statements should be read in conjunction
with the Company's most recent annual financial statements and footnotes
included in the annual report of Home Building Bancorp, Inc. dated September 30,
1998. The results of the period presented are not necessarily representative of
the results of operations and cash flows which may be expected for the entire
year.
Note 2: Principles of Consolidation
The consolidated financial statements include the accounts of Home Building
Bancorp, Inc., the Bank, and the Bank's subsidiary, White River Service
Corporation. All significant inter-company balances and transactions have been
eliminated in consolidation.
Note 3: Stock Conversion
On February 7, 1995, Home Building Bancorp, Inc. began trading as a public
company on the Nasdaq SmallCap Market. The Company issued 322,000 shares,
$.01 par value common stock, for proceeds of $2,858,862 net expenses of
approximately $361,000. The Bank converted to a federal stock savings bank
following the formation of the holding company and received proceeds of
$1,432,853 in exchange for all its common stock. This transaction was
accounted for using historical cost in a manner similar to that in a pooling of
interests. In February 1998, the Company's stock listing was moved from the
NASDAQ SmallCap Market to NASDAQ's OTC Electronic Bulletin Board under the
symbol "HBBI".
Note 4: Earnings Per Common Share
Basic earnings of $0.39 per common share for the three-month period and $0.96
for the nine-month period ended June 30, 1999, were computed by dividing net
income by the weighted average number of shares outstanding during the
quarter, less Employee Stock Ownership Plan ("ESOP") shares and Recognition
and Retention Plan ("RRP") shares not committed to be released. The weighted
average number of shares outstanding for the periods was 281,056 and 283,157,
respectively. Diluted earnings per share are consistent with that of basic
earnings per share while giving effect to all dilutive potential common
shares that were outstanding during the period. Earnings, assuming dilution,
for the most recent three-month period were $0.39 per share and $0.96 for the
nine-month period ended June 30, 1999. A reconciliation of both numerators and
denominators of the per share calculations follows:
- -5-
<PAGE>
<TABLE>
<CAPTION>
Home Building Bancorp, Inc
Washington, Indiana
Notes to Consolidated Financial Statements
June 30, 1999 and 1998
(continued)
Note 4: Earnings Per Common Share, continued
Income Shares Per-Share
(Numerator) (Denominator) Amount
For the Three Months Ended June 30, 1999
Basic EPS,
<S> <C> <C> <C>
Income available to common shareholders $109,301 281,056 $0.39
Effect of dilutive securities:
Incentive stock option plan shares -
Diluted EPS
Income available to common shareholders+
assumed conversions $109,301 281,056 $0.39
For the Nine Months Ended June 30, 1999
Basic EPS,
Income available to common shareholders $270,423 283,157 $0.96
Effect of dilutive securities:
Incentive stock option plan shares -
Diluted EPS
Income available to common shareholders+
assumed conversions $270,423 283,157 $0.96
For the Three Months Ended June 30, 1998
Basic EPS,
Income available to common shareholders $76,980 291,367 $0.26
Effect of dilutive securities:
Incentive stock option plan shares 5,014
Diluted EPS
Income available to common shareholders+
assumed conversions $76,980 296,381 $0.26
For the Nine Months Ended June 30, 1998
Basic EPS,
Income available to common shareholders $230,135 290,173 $0.79
Effect of dilutive securities:
Incentive stock option plan shares 5,014
Diluted EPS
Income available to common shareholders+
assumed conversions $230,135 295,187 $0.78
</TABLE>
- -6-
<PAGE>
Home Building Bancorp, Inc
Washington, Indiana
Notes to Consolidated Financial Statements
June 30, 1999 and 1998
(concluded)
Note 5: Allowance for Loan Losses and Loan Loss Provision
Activity in the allowance for loan losses was as follows:
For the nine months ended June 30,
1999 1998
Beginning $ 92,249 $ 77,039
Provision 15,000 -
Charge-offs (24,277) -
Recoveries 3,133 -
Ending $ 86,105 $ 77,039
- -7-
<PAGE>
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations
General
Home Building Bancorp, Inc. (the "Company") was formed at the direction of
Home Building Savings Bank, FSB (the "Bank"), for the purpose of owning all
the stock outstanding in the Bank. The Company incorporated under the laws of
the State of Indiana and is generally authorized to engage in any activity
permitted under Indiana law. On February 7, 1995, the Company acquired all the
stock of the Bank in accordance with the approved plan of conversion. The
Company had not engaged in any material operations at June 30, 1999, and had
no significant assets other than its equity investment in the Bank's stock,
cash, investments, and a loan to the Bank's Employee Stock Ownership Plan
("ESOP").
Established in 1908, Home Building Savings Bank, FSB is a community
oriented financial institution offering a variety of financial services to meet
the needs of the communities it serves. The Bank's primary market area covers
Daviess and Pike counties in southwestern Indiana. The Bank attracts deposits
from the general public and uses such deposits, together with borrowings and
other funds, to originate one-to-four family residential mortgage loans,
automobile and other consumer loans, and to a lesser extent commercial,
multifamily and construction real estate loans. The Bank also invests in United
States government and agency obligations and may invest in other permissible
investments.
The Bank's results of operations are primarily dependent upon its interest
income, which is the difference between interest earned on loans and investments
and interest paid on deposits and borrowed funds. Net interest income is
directly affected by the relative amounts of interest-earning assets and
interest-bearing liabilities and the interest rates earned or paid on such
amounts. The Bank's results of operations are also affected by the provision
for loan losses and the level of noninterest income and expenses. General
economic conditions, the monetary and fiscal policies of federal agencies, and
the policies of agencies that regulate financial institutions also affect the
operating results of the Bank. Interest rates on competing investments and
general market rates of interest influence the Bank's cost of funds. The demand
for real estate loans and other types of loans influence lending activities,
which in turn is affected by the rates of interest at which loans are
offered, general economic conditions affecting loan demand, and the
availability of funds for lending activities.
Changes in Financial Condition from June 30, 1999 to September 30, 1998
For the nine months June 30, 1999, total assets increased approximately $3.7
million to $48.8 million from $45.1 million at September 30, 1998. This
increase in total assets was the result of a $3.3 million increase in net loans
receivable to $36.0 million at June 30, 1999 from $32.7 million at September
30, 1998. Net loans receivable increased as a result of strong demand in the
Bank's primary market area for mortgages to purchase homes and for the
refinancing of existing home mortgages. The increase in net lending was funded
by a reduction in cash balances, the use of funds from payments received from
the Bank's securities portfolio, retail deposit growth, and an increase in
advances from the Federal Home Loan Bank ("FHLB") of Indianapolis.
Interest-bearing deposits with banks also increased as the Bank invested
short-term, public funds deposits.
Liabilities increased by approximately $3.7 million, to $42.7 million at June
30, 1999 from $39.0 million at September 30, 1998. Savings and NOW deposits
increased approximately $800,000 net; time deposits increased approximately
$2.4 million; and FHLB advances increased $500,000. The Bank has maintained
steady, competitive market rates on deposits during the nine-month period ended
June 30, 1999. The Bank regularly bids on deposits from local governmental
entities as a source of short-term funds. However, no assurances can be made
that the Bank will be successful in increasing or retaining its deposits in the
future.
- -8-
<PAGE>
Home Building Bancorp, Inc.
Management's Discussion and Analysis of
Financial Condition and Results of Operations
(continued)
Results of Operations for the three and nine months ended June 30, 1999
and 1998.
General. The Company experienced a net profit of $109,000 for the three
months and $270,000 for the nine months ended June 30, 1999, respectively,
compared to net profits of $77,000 and $230,000 for the same periods in 1998.
Interest Income. Total interest income increased $31,000, or 3.9%, to
$846,000 for the three months ended June 30, 1999 compared to the same
period last year. Interest income earned by the Company's loan portfolio
increased $36,000 for the three months ended June 30, 1999 compared to a year
ago due to a higher loan volume. Lower average balances of mortgage-backed
securities and other investments resulted in a decline in interest income from
these assets by $34,000 for the quarter ended June 30, 1999 compared to the
same quarter a year ago. Due to increases in deposits with other banks,
interest income from this source increased $29,000 for the quarter ended
June 30, 1999 compared to the same quarter in 1998. The Bank continues to
profit from positive spreads earned on large public funds deposits. For the
nine-month period ending June 30, 1999, total interest income increased
$50,000, or 2.1%, to $2,488,000, compared to $2,438,000 for the nine month
period ended June 30, 1998.
Interest Expense. Total interest expense decreased $11,000, or 2.4%, to
$455,000 during the quarter ended June 30, 1999, compared to the same quarter
a year ago. During the quarter FHLB advances increased $500,000. The
weighted average cost of deposits at June 30, 1999 was 4.03%, compared to
4.27% at March 31, 1999. The overall cost of funds, including FHLB advances,
was 4.34% at June 30, 1999 compared to 4.45% at March 31, 1999. These
numbers reflect the ability of the Bank to maintain steady deposit interest
rates, and even lower the rates paid on some types of checking accounts
without losing market share. The Bank is able to compete aggressively for
deposits when spreads on loans or investments are adequate, and FHLB advances
have been an effective liability management tool.
Net Interest Income. Net interest income, before provision for loan losses,
increased $42,000, or 12.1%, to $391,000 for the quarter ended June 30, 1999
compared to the same quarter a year ago. As of June 30, 1999, interest-earning
assets were 109.5% of interest-bearing liabilities.
Local demand for mortgage loans remained very strong during the nine-month
period ended June 30, 1999. Net loan receivable increased $3.3 million to $36.0
million at June 30, 1999, compared to $32.7 million at September 30, 1998. Of
the $3.3 million growth in loans, $2.8 million was in mortgage loans, and the
remainder in automobile, consumer and commercial loans.
Total deposits increased during the nine-month period ended June 30, 1999 by
approximately $3.3 million to $35.5 at June 30, 1999 million from $32.2
million at September 30, 1998. The Company regularly bids on short-term
public deposits, and at June 30, 1999, these funds had increased $2.8 million
compared to September 30, 1998. At any time the Company could decline to
bid on such funds, and allow them to be withdrawn if acceptable spreads are not
available. The Company's liabilities are generally shorter in term and subject
to repricing more frequently than assets. The Bank's advances from the FHLB
increased $500,000 during the nine-month period ended June 30, 1999.
The Company continues to stress consumer and installment lending, shorter (15
years and under) fixed rate mortgage loans, and commercial loans. During the
quarter ended June 30, 1999, the Bank hired an experienced commercial bank
loan officer to increase the Bank's ability to make small commercial loans to
small businesses and self-employed persons. The Company, as a thrift
institution, continues to have exposure
- -9-
<PAGE>
Home Building Bancorp, Inc.
Management's Discussion and Analysis of
Financial Condition and Results of Operations
(continued)
to interest rate risk comparable to its peers. Based on the latest available
Office of Thrift Supervision ("OTS") Interest Rate Risk Exposure Report, the
net present value of the Bank, as a percent of assets in the +200bp scenario,
would be 9.81%.
Nonperforming Assets and Provision for Loan Losses. The provision for
loan losses is a result of management's periodic analysis of the adequacy of
the Company's allowance for loan losses. During the three-month period ending
June 30, 1999 no additional provision was made against earnings. The Company
adjusts its allowance in accordance with its Classified Assets Policy. The
Company believes it has taken an appropriate approach toward reserve levels,
consistent with the Company's loan portfolio, its current level of reserves,
the economy, real estate values and interest rates. The Company has had an
extremely low level of loan losses during its history and therefore also
considers the loss experience of similar portfolios in comparable
institutions. Federal regulators may require additional reserves as the
result of their examinations of the Company, but have not done so.
Accordingly, the calculation of the adequacy of the allowance is not solely
based directly on the level of nonperforming assets at any one time. No
assurance can be made that future losses will not exceed the estimated
amounts, thereby adversely affecting future results of operations. As of June
30, 1999 the Company's allowance for loan losses was $86,000 compared to
$92,000 at September 30, 1998. Over the nine-month period ended June 30,
1999, $21,000 in losses, net of recoveries, were recognized and $15,000 in
additions were made to the loan loss reserve.
As of June 30, 1999, the Company's nonperforming assets totaled $38,000, or
.08% of total assets. At the same date, the Company's ratio of allowance for
loan losses to nonperforming assets was 226.3%.
Noninterest Income. Noninterest income decreased $19,000, or 29.2%, to
$46,000 for the quarter ended June 30, 1999 compared to the same quarter a
year ago. The reduction was due to lower fee income from the Bank's service
corporation subsidiary. For the nine-month period ending June 30, 1999,
noninterest income decreased $7,000, or 4.6%, to $146,000. During the nine-
month period ended June 30, 1999, gains from the sale of assets were $10,000
compared to $17,000 for the same period a year ago. Customer service fees were
unchanged.
Noninterest Expense. Total noninterest expense decreased $19,000, or 6.3%, to
$281,000 for the latest quarter ended June 30, 1999 compared to $300,000 for
the same quarter a year ago. For the nine months ended June 30, 1999
noninterest expense decreased $21,000, or 2.4%, to $862,000 compared to
$883,000 for the same period a year ago. The reductions for both the latest
quarter and the fiscal year to date came from lower computer expense,
professional fees, and miscellaneous expense.
Income Tax Expense. Income tax expense was $47,000 for the quarter ended
June 30, 1999 compared to $27,000 for the same quarter a year ago. For the nine
months ended June 30, 1999, tax expense was $122,000 compared to $117,000.
Tax expense reflects the level of profitability for the respective periods.
Liquidity and Capital Requirements. The Company's main sources of funds
are deposits, loan and investment repayments, fees and service charges, and
FHLB advances. Federal regulations require the Bank to maintain cash and
eligible investments at levels that assure its ability to meet demands for
withdrawals and repayments of short-term borrowings. As of June 30, 1999, the
Bank had cash and due from banks, deposits, and securities available for sale
equal to 26.8% of total deposits and FHLB advances.
The Bank uses its capital resources to meet ongoing commitments, to fund
maturing certificates of deposit and deposit withdrawals, to invest, to fund
existing and future loan commitments, to maintain liquidity, and to meet
operating expenses. The Bank anticipates it will have sufficient funds to meet
current loan commitments.
- -10-
<PAGE>
Home Building Bancorp, Inc.
Management's Discussion and Analysis of
Financial Condition and Results of Operations
(continued)
At June 30, 1999 the Bank had outstanding commitments to extend credit
totaling $1,867,000. Management believes loan repayments, deposits, and other
sources of funds will be adequate to meet the Bank's foreseeable liquidity
needs. FHLB advances may be used to take advantage of investment and lending
opportunities, or as an alternative source of liquid funds.
The Bank is required to maintain specific amounts of regulatory capital
pursuant to federal regulations. The table below presents the capital position
at June 30, 1999, relative to the regulatory capital requirements.
Amount
(in thousands) Percent of Assets
Tier 1 Core Capital $4,842 10.02%
Core Capital Requirement $1,933 4.00%
Excess $2,909 6.02%
Total Capital $4,928 19.13%
Risk- Based Capital Requirement $2,061 8.00%
Excess $2,867 11.13%
Year 2000
The Company has conducted a comprehensive review of its computer systems to
identify applications that could be affected by the "Year 2000" issue. It
continues to implement a plan which addresses both systems used at the Bank's
subsidiary offices themselves and the status of vendors on whom the Bank relies
for data and transaction processing. A service bureau does most of the Bank's
data processing. To date, representations by these vendors and testing done
with them lead management to believe the Corporation is substantially
compliant for Year 2000. After review, the Bank has not identified any
problems related to customer credits concerning Year 2000. To date, costs
associated with Year 2000 preparations have not varied from the $10,000-
$15,000 anticipated and are not material.
Forward Looking Statements
When used in this Quarterly Report on Form 10-QSB or future filings by the
Company with the Securities and Exchange Commission, in the Company's
press releases or other public or shareholder communications, or in oral
statements made with the approval of an authorized executive officer, the words
or phrases "will likely result", "are expected to", "will continue", "is
anticipated", "estimate", "project', "believe", or similar expressions are
intended to identify "forward-looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995. The Company wishes to
caution readers not to place undue reliance on any such forward-looking
statements, which speak only as of the date made, and to advise readers that
various factors including regional and national economic conditions, changes
in levels of market interest rates, credit risks of lending activities, and
competitive and regulatory factors could affect the Company's financial
performance and could cause the Company's actual results for future periods
to differ materially from those anticipated or projected.
The Company does not undertake and specifically disclaims any obligation to
publicly release the result of any revisions, which may be made to any forward-
looking statements to reflect the occurrence of anticipated or unanticipated
events or circumstances after the date of such statements.
- -11-
<PAGE>
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
Exhibit 27: Financial Data Schedule (electronic filing only)
(b) There were no reports on Form 8-K filed during the
quarter ended June 30, 1999.
- -12-
<PAGE>
SIGNATURES
Pursuant to the requirement 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.
HOME BUILDING BANCORP, INC.
Registrant
Date: 8/11/99 /s/ Bruce A. Beesley
Bruce A. Beesley, President and
Chief Executive Officer (Duly
Authorized Officer)
Date: 8/11/99 /s/ Debra K. Shields
Debra K. Shields, Vice President and
Chief Financial Officer (Principal
Financial and Accounting Officer)
- -13-
INDEX OF EXHIBITS
Exhibit Description
27 Financial Data Schedule (electronic filing only)
- -14-
<TABLE> <S> <C>
<ARTICLE> 9
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM UNAUDITED
FINANCIAL STATEMENTS DATED JUNE 30, 1999 AND IS QUALIFIED IN ITS ENTIRETY BY
REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> SEP-30-1999
<PERIOD-END> JUN-30-1999
<CASH> 944314
<INT-BEARING-DEPOSITS> 5771675
<FED-FUNDS-SOLD> 0
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 4619997
<INVESTMENTS-CARRYING> 152357
<INVESTMENTS-MARKET> 153000
<LOANS> 36008229
<ALLOWANCE> 86105
<TOTAL-ASSETS> 48783099
<DEPOSITS> 35490655
<SHORT-TERM> 0
<LIABILITIES-OTHER> 341905
<LONG-TERM> 6827415
0
0
<COMMON> 3317
<OTHER-SE> 6119807
<TOTAL-LIABILITIES-AND-EQUITY> 48783099
<INTEREST-LOAN> 2020169
<INTEREST-INVEST> 250307
<INTEREST-OTHER> 217546
<INTEREST-TOTAL> 2488022
<INTEREST-DEPOSIT> 1106410
<INTEREST-EXPENSE> 1364457
<INTEREST-INCOME-NET> 1123565
<LOAN-LOSSES> 15000
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 862115
<INCOME-PRETAX> 392385
<INCOME-PRE-EXTRAORDINARY> 270423
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 270423
<EPS-BASIC> .96
<EPS-DILUTED> .96
<YIELD-ACTUAL> .06
<LOANS-NON> 38000
<LOANS-PAST> 0
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 92249
<CHARGE-OFFS> 24277
<RECOVERIES> 3133
<ALLOWANCE-CLOSE> 86105
<ALLOWANCE-DOMESTIC> 0
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 86105
</TABLE>
