UNITED STATES
SECURITY AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB/A
{X} QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the quarterly period ended DECEMBER 31, 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
The Registrant had 331,660 shares of common stock, par value $.01, outstanding
at the close of business, on February 10, 2000.
Transitional Small Business Disclosure Format:
{ } Yes {X} No
<PAGE>
HOME BUILDING BANCORP, INC.
INDEX
Part I. Financial Information Page
Item 1. Financial Statements
Consolidated Statements of Financial Condition at December 31, 1999 1
and September 30, 1999
Consolidated Statements of Income for the quarters ended
December 31, 1999 and 1998 2
Consolidated Statements of Comprehensive Income for the quarters
ended December 31, 1999 and 1998 3
Consolidated Statements of Cash Flows for the quarters ended
December 31, 1999 and 1998 4
Notes to Consolidated Financial Statements 5
Item 2. Management's Discussion and Analysis of Financial Condition 7
and results of Operations
Part II. Other Information
Signatures
Index of Exhibits
Exhibits
<PAGE>
<TABLE>
<CAPTION>
Home Building Bancorp, Inc.
Washington, Indiana
Consolidated Statements of Financial Condition
(Unaudited)
Dec. 31, Sept. 30,
1999 1999
----------- ---------
<S> <C> <C>
ASSETS
Cash and due from banks $ 1,673,204 $ 1,247,958
Interest-bearing deposits with banks 1,364,189 4,760,057
Securities available for sale 4,481,928 4,634,094
Securities held to maturity, fair market
value of $111,308 at Dec. 31, 1999 and
$129,697 at Sept. 30, 1999 111,855 129,362
Loans receivable, net of allowance for loan losses of
$89,826 at Dec. 31, 1999 and $86,288
at Sept. 30, 1999 36,713,644 36,842,618
Accrued interest receivable 247,266 251,030
Insurance receivable 340,130 --
Premises and equipment 741,923 744,516
Other assets 93,884 277,436
------------ ------------
Total assets $ 45,768,023 $ 48,887,071
============ ============
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Savings and NOW deposits $ 10,600,241 $ 11,190,073
Other time deposits 23,044,960 24,398,525
------------ ------------
Total deposits 33,645,201 35,588,598
------------ ------------
Advances from Federal Home Loan Bank 5,677,863 6,677,863
Accrued expenses and other liabilities 234,018 459,888
------------ ------------
Total liabilities 39,557,082 42,726,349
------------ ------------
Shareholders' equity:
Common stock, $.01 par value, 1 million shares authorized,
331,660 issued and outstanding 3,317 3,317
Additional paid-in capital 3,099,814 3,098,774
Treasury stock, at cost (605,000) (605,000)
Retained earnings 3,905,242 3,855,608
Net unrealized gain on available for sale securities,
net of deferred tax of $11,572 at Dec. 31, and
$13,827 at Sept. 30 (52,882) (37,946)
Unearned ESOP & recognition and retention shares (139,550) (154,031)
Total shareholders' equity 6,210,941 6,160,722
------------ ------------
Total liabilities and shareholders' equity $ 45,768,023 $ 48,887,071
============ ============
</TABLE>
The accompanying notes are an integral part of these consolidated financial
statements.
1
<PAGE>
<TABLE>
<CAPTION>
Home Building Bancorp, Inc.
Washington, Indiana
Consolidated Statements of Income
Three months ended Dec. 31,
1999 1998
---- ----
(Unaudited)
<S> <C> <C>
Interest income:
Loans receivable $ 728,466 $ 657,539
Investments 33,330 27,425
Mortgage-backed securities 44,017 58,783
Deposits with other banks 70,910 65,134
--------- ---------
Total interest income 876,723 808,881
--------- ---------
Interest expense:
Deposits 380,846 365,659
Other borrowed funds 86,933 87,245
--------- ---------
Total interest expense 467,779 452,904
--------- ---------
Net interest income 408,944 355,977
Provision for loan losses (3,500) (5,000)
--------- ---------
Net interest income after provision for loan losses 405,444 350,977
--------- ---------
Noninterest income:
Gain on sale of assets 18 5,727
Customer service fees 26,102 48,241
--------- ---------
Total other income 26,120 53,968
--------- ---------
Noninterest expenses:
Salaries and employee benefits 168,832 155,945
Occupancy and equipment 38,577 35,895
Deposit insurance premium 5,307 4,723
Computer expense 16,617 14,549
Service fees 15,511 14,813
Advertising expense 13,703 13,328
Professional fees 16,772 18,634
Other expense 39,485 27,000
--------- ---------
Total other expenses 314,804 284,887
--------- ---------
Income before income taxes 116,760 120,058
Income tax expense 44,876 40,849
--------- ---------
Net income $ 71,884 $ 79,209
========= =========
Basic earnings per share of common stock $ 0.25 $ 0.28
========= =========
Weighted average shares outstanding 283,354 286,258
========= =========
Diluted earnings per share of common stock $ 0.25 $ 0.28
========= =========
Diluted weighted average share outstanding 283,354 286,985
========= =========
</TABLE>
The accompanying notes are an integral part of these consolidated financial
statements.
2
<PAGE>
<TABLE>
<CAPTION>
Home Building Bancorp, Inc.
Washington, Indiana
Consolidated Statements of Comprehensive Income
Three months ended Dec. 31,
1999 1998
---- ----
(Unaudited)
<S> <C> <C>
Net income $ 71,884 $ 79,209
Other comprehensive income, net of income tax:
Unrealized holding gains and (losses) (14,936) (3,383)
-------- --------
Comprehensive income $ 56,948 $ 75,826
======== ========
</TABLE>
The accompanying notes are an integral part of these consolidated financial
statements.
3
<PAGE>
<TABLE>
<CAPTION>
Home Building Bancorp, Inc.
Washington, Indiana
Consolidated Statements of Cash Flows
Three months ended Dec. 31,
1999 1998
---- ----
(Unaudited)
<S> <C> <C>
Cash flows from operating activities:
Net income $ 71,884 $ 79,209
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 8,736 9,714
Non cash compensation 15,521 20,653
Provision for loan losses 3,500 5,000
Net realized gains on available for sale securities -- --
Decrease in insurance receivable -- --
Decrease in accrued interest receivable 3,764 12,993
Increase (decrease) in accrued expenses
and other liabilities (225,871) (171,673)
(Increase) decrease in other assets 194,710 127,643
----------- -----------
Total adjustments 360 4,330
----------- -----------
Net cash provided by operating activities 72,244 83,539
----------- -----------
Cash flows from investing activities:
Net (increase) decrease in interest-
bearing deposits with banks 3,395,868 (393,116)
Purchases of available for sale securities -- --
Proceeds from maturities of available for sale securities 126,072 932,072
Proceeds from sales of available for sale securities -- --
Proceeds from maturities of held to maturity securities 17,507 26,259
Net increase in loans (214,656) (1,778,741)
Net purchases of premises and equipment (6,142) (4,529)
----------- -----------
Net cash (used) provided by investing activities 3,318,649 (1,218,055)
----------- -----------
Cash flows from financing activities:
Net increase in savings and
NOW deposit accounts (589,832) 749,665
Net increase in time deposits (1,353,565) 1,548,590
Purchase of 15,000 shares treasury stock -- (260,000)
Paydowns on Federal Home Loan Bank Advances (1,000,000) --
Dividends paid (22,250) (22,250)
----------- -----------
Net cash provided by financing activities (2,965,647) 2,016,005
----------- -----------
Net increase in cash and due from banks 425,246 881,489
Cash and due from banks at beginning of period 1,247,958 1,366,761
----------- -----------
Cash and due from banks at end of period $ 1,673,204 $ 2,248,250
=========== ===========
Interest paid $ 467,779 $ 467,492
=========== ===========
Income taxes paid $ 17,227 $ 80,144
=========== ===========
</TABLE>
The accompanying notes are an integral part of these consolidated financial
statements.
4
<PAGE>
Home Building Bancorp, Inc.
Notes to Consolidated Financial Statements
December 31, 1999 and 1998
Note 1: Basis of Presentation
The unaudited information for the quarters ended December 31, 1999 and December
31, 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, 1999. 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., Home Building Savings Bank, FSB, 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 1999,
the Company's stock listing was moved from the NASDAQ SmallCap Market to the
"pink sheets" published by the National Quotations Bureau, Inc.
Note 4: Earnings Per Common Share
Basic earnings of $0.25 per common share for the most recent quarter was
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 for
release. The weighted average number of shares outstanding for the period was
283,354. Dilutive earnings per share is 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
quarter were $0.25 per share. A reconciliation of both numerators and
denominators of the per share calculations follows:
5
<PAGE>
Home Building Bancorp, Inc.
Notes to Consolidated Financial Statements
December 31, 1999 and 1998
(Concluded)
Note 4: Earnings Per Common Share, continued
<TABLE>
<CAPTION>
For the Three Months Ended December 31, 1999
--------------------------------------------
Income Shares Per-Share
(Numerator) (Denominator) Amount
<S> <C> <C> <C>
BASIC EPS
Income available to common shareholders $71,884 283,354 $0.25
Effect of dilutive securities:
Incentive stock option plan shares 727
DILUTED EPS
Income available to common shareholders+
assumed conversions $71,884 283,041 $0.25
For the Three Months Ended December 31, 1998
--------------------------------------------
Income Shares Per-Share
(Numerator) (Denominator) Amount
BASIC EPS
Income available to common shareholders $79,209 286,258 $0.28
Effect of dilutive securities:
Incentive stock option plan shares 727
DILUTED EPS
Income available to common shareholders+
assumed conversions $79,209 286,985 $0.28
</TABLE>
Note 5: Allowance for Loan Losses and Loan Loss Provision
The allowance for loan losses increased $3,538 to $89,826 for the three-month
period ended December 31, 1999 compared to September 30, 1999. This increase was
the net effect of charge-offs and an additional provision of $3,500 for loan
losses made during the period ended December 31, 1999. Activity in the allowance
for loan losses was as follows:
For the three months ended December 31,
1999 1998
---- ----
Beginning $ 86,288 $ 92,249
Provision 3,500 5,000
Charge-offs 38 (3,624)
Recoveries -- --
-------- --------
Ending $ 89,826 $ 93,625
======== ========
Note 6: Insurance Receivable
During the most recent quarter the bank discovered an employee fraud involving
$350,130 in ficticious loans on savings accounts. Of this amount, $340,130 was
reclassified from loans receivable to an insurance receivable, because
management believes the loss is covered by the Company's fidelity bond. The
difference of $10,000, representing the deductible of the Bank's fidelity bond,
was recorded as another, noninterest expense. Management, working with counsel,
is compiling information to submit a claim and has already notified the bond
carrier.
6
<PAGE>
Home Building Bancorp, Inc.
Management's Discussion and Analysis of
Financial Condition and Results of Operation
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 that is 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 no
significant assets at December 31, 1999 other than its equity investment in the
Bank's stock, cash, investments, and a loan to the Bank' Employee Stock
Ownership Plan ("ESOP").
Established in 1908, the Bank 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 mortgages, automobile and consumer loans, and to
a lesser extent commercial, multi-family and construction real estate loans. The
Bank also invests in U.S. government and agency obligations and may invest in
other permissible investments.
The Bank's results of operations are primarily dependent upon its net 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. Noninterest income
consists primarily of service charges and net income from the Bank's wholly
owned service corporation subsidiary, White River Service Corporation.
Noninterest expense includes salaries and employee benefits, occupancy expenses,
federal deposit insurance premiums, data processing expenses, and other
operating expenses. The operating results of the Bank are also affected by
general economic conditions, the monetary and fiscal policies of federal
agencies, and the policies of agencies that regulate financial institutions.
Interest rates on competing investments and general market rates of interest
influence the Bank's cost of funds. Lending activities are influenced by the
demand for real estate loans and other types of loans, 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.
FINANCIAL CONDITION
For the three months ended December 31, 1999, total assets decreased
approximately $3.1 million to $45.8 million from $48.9 million at September 30,
1999. Loans receivable decreased approximately $129,000 to $36.7 million at
December 31, 1999. This net decrease included the reclassification of $340,130
from loans receivable to an insurance receivable as the result of the discovery
of an employee fraud involving fictitious loans. The defalcation took place over
a period of six years, but was not prevented or detected earlier because it did
not result in any cash shortages, accounting imbalances, or from the usurpation
of duties from other personnel. The Bank now uses the same procedures for
origination and accounting of loans on savings accounts as on any other type of
secured installment loan. See Note 6 to Consolidated Financial Statements. Total
cash and cash equivalents increased approximately $425,000, while interest
bearing deposits with banks decreased $3.4 million. The Bank reclassified
$340,000 from loans receivable to an insurance receivable due to an employee
defalcation.
Liabilities decreased by approximately $3.2 million. Deposits decreased $1.9
million with the scheduled withdrawal of some public funds. The Bank maintained
deposit interest rates which are competitive for its marketplace, and often bids
on large public fund deposits. These may cause significant changes in both total
customer deposits and short term investments and deposits by the Bank. The
Bank's advances from the Federal Home Loan Bank ("FHLB") also decreased $1.0
million due to a scheduled maturity.
7
<PAGE>
Home Building Bancorp, Inc.
Management's Discussion and Analysis of
Financial Condition and Results of Operation
RESULTS OF OPERATIONS:
COMPARISON OF THE THREE MONTHS ENDED DECEMBER 31, 1999 AND 1998.
GENERAL. The Bank experienced a net profit of $71,884 for the quarter compared
to a profit of $79,204 for the same period in 1998. A increase in net interest
income was more than offset by increased noninterest expense and lower
noninterest income compared to the same period a year ago.
INTEREST INCOME. Total interest income increased $68,000, or 8.4%, to $877,000
for the period ended December 31, 1999 compared to $809,000 the same period last
year. Interest income earned on the Bank's loan portfolio increased $70,000 to
$728,000 for the quarter compared to $658,000 for the same quarter in 1998. This
increase was due to growth in the loan portfolio, particularly mortgages,
compared to a year ago. Interest income from investment and mortgage-backed
securities decreased approximately $9,000 during the quarter ended December 31,
1999 compared to the same quarter a year ago as these assets continue to pay
down. Income on deposits for the most recent quarter increased $6,000 to
$71,000. The weighted average yield on earning assets was 7.33% for the three
months ended December 31, 1999 compared to 7.23% for the three months ended
December 31, 1998.
INTEREST EXPENSE. Total interest expense increased $15,000, or 3.3% to $468,000
for the quarter ended December 31, 1999, compared to $453,000 the same quarter a
year ago. The increase was due to a higher volume of deposits during most of the
period compared to a year ago. While total deposits had decreased $1.9 million
by the end of the quarter ended December 31, 1999, the Bank was able to reduce
its average cost of deposits and borrowed funds to 4.40% for the most recent
quarter from 4.52% for the same quarter a year ago. Some of the decrease
resulted from the scheduled withdrawal of short-term public funds deposits, on
which a higher than avergage interest rate was being paid. The Bank does not
rely on these funds for regular operations. The Bank is able to compete
aggressively for savings funds in its markets when adequate spreads on loans or
investments become available. FHLB advances also remain a liability management
tool.
NET INTEREST INCOME. Net interest income before provision for loan losses
increased $53,000, or 14.88%, to $409,000 for the quarter ended December 31,
1999, compared to $356,000 for the same quarter in 1998. As of December 31, 1999
interest-earning assets were 110.1% of interest bearing liabilities. On the
asset side, the Bank's fixed rate mortgage and mortgage-backed security
portfolio grew approximately $200,000 during the period. The adjustable rate
loan portfolio remained stable. Installment and commercial loans decreased
approximately $630,000. On the liability side, the Bank's certificate of deposit
and savings/NOW deposits both decreased during the quarter. The Bank's
liabilities are generally shorter in term and subject to repricing more
frequently than assets; accordingly, an increase in interest rates could
adversely affect the Company's net income. The Bank continues to stress consumer
and installment lending. Interest rate risk is monitored to assure compliance
with the Bank's policy. Investments stress shorter-term and adjustable
securities to respond to changing rates. The Bank, as a thrift institution,
continues to have exposure to interest rate risk in compliance with its board's
policy.
8
<PAGE>
Home Building Bancorp, Inc.
Management's Discussion and Analysis of
Financial Condition and Results of Operation
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
Bank's allowance for loan losses. During the three month period ended December
31, 1999, a $3,500 provision was charged against earnings to increase the level
of the allowance for loan losses. The Bank adjusts its allowance in accordance
with its Classified Assets Policy. The Bank believes it has taken an appropriate
approach toward reserve levels, consistent with the Bank's loan portfolio, its
current level of reserves, the economy, real estate values, and interest rates.
The Bank has had a low level of loan losses during its history and therefore
considers the loss experience of similar portfolios in comparable lending
markets and institutions. Federal regulators may require additional reserves as
a result of their examinations of the Bank. 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 December 31, 1999, the Bank's allowance for loan
losses was $90,000 compared to $93,000 one year earlier.
As of December 31, 1999 the Bank's nonperforming assets totaled $228,000, or
0.50% of total assets. At the same date the Bank's ratio of allowance for loan
losses to nonperforming assets was 39.5%. At September 30, 1999 the Bank's
nonperforming assets totaled $129,000, or .26% of total assets and the Bank's
loan loss allowance represented 66.6% of nonperforming assets.
NONINTEREST INCOME. Noninterest income decreased $28,000, or 51.60%, to $26,000
for the most recent quarter compared to $54,000 for the same quarter a year ago.
The decrease resulted from lower profit from the Bank's service corporation
subsidiary brokergage operation. Also, profit from the sale of an asset in the
same quarter a year ago did not reoccur during this most recent quarter.
NONINTEREST EXPENSE. Total noninterest expense increased $30,000, or 10.50%, to
$315,000 for the most recent quarter compared to $285,000 for the same quarter a
year ago. During the most recent quarter the Bank discovered and employee
defalcation. The Bank's fidelity bond insurance deductible of $10,000 was
incurred as a nonoperating expense in this quarter. See Note 6 to Consolidated
Financial Statements. Also, salaries and benefits increased with the addition of
one full-time employee compared to the same quarter a year ago.
INCOME TAX EXPENSE. Income tax expense was $45,000 during the most recent
quarter compared to $41,000 the same quarter a year ago. The amount of expense
accrued each quarter for tax expense is based on management's estimate of future
tax liability.
LIQUIDITY AND CAPITAL REQUIREMENTS. The Bank'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 as liquidity to assure the Bank's ability to meet demands for
withdrawals and repayments of short-term borrowings. As of December 31, 1999 the
Bank's liquidity ratio was 16.61%, which is well above regulatory requirement.
9
<PAGE>
Home Building Bancorp, Inc.
Management's Discussion and Analysis of
Financial Condition and Results of Operation
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. At December 31, 1999 the Bank had outstanding
commitments to extend credit totaling $762,000. Management believes loan
repayments 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
investments and meet loan demand, but they are not relied upon in the regular
course of business. At December 31, 1999 certificates of deposit schedule to
mature in one year or less totaled $15.6 million. Management believes, based on
its experience to date, that a significant portion of these funds will remain
with the Bank. The Bank is required to maintain specific amounts of regulatory
capital pursuant to federal regulations. The table below presents the capital
position as of December 31, 1999 relative to the regulatory capital
requirements.
Amount
(in thousands) Percent of Assets
-------------- -----------------
Tangible Capital $ 4,883 10.74%
Tangible Capital Requirement $ 682 1.50%
--------- -----
Excess $ 4,201 9.24%
Core Capital $ 4,883 10.73%
Core Capital Requirement $ 1,819 4.00%
-------- -----
Excess $ 3,064 6.73%
Total Capital (Core & Supple.) $ 4,973 19.30%
Risk-Based Capital Requirement $ 2,062 8.00%
--------- -----
Excess $ 2,911 11.30%
YEAR 2000
Home Building Savings Bank has not experience any data processing or
other operational problems connected with the Year 2000 event. Moreover,
management is not aware of any significant operational problems among the Bank's
correspondent institutions, data processing providers, or others vendors, which
would have an effect on the Bank's operations. The Bank did not experience any
noticeable deposit withdrawals or other activity by Bank's customers that had
any impact on operations. Management does believe, however, that profitability
of the Bank's brokerage operation subsidiary was hurt by lack of activity in the
quarter leading up to the Year 2000 event, and anticipates a return to more
average levels of activity and income in coming quarters.
10
<PAGE>
Home Building Bancorp, Inc.
Management's Discussion and Analysis of
Financial Condition and Results of Operation
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 1. Legal Proceedings
None
Item 2. Changes in Securities and Use of Proceeds
None
Item 3. Defaults Upon Senior Securities
None
Item 4. Submission of Matters to a Vote of Security Holders
None
Item 5. Other Information
None
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
Exhibit 27: Financial Data Schedule (electronic filing only)
(b) Reports on Form 8-K
Date of Report: November 9, 1999
Items Reported: Item 5, Press release announcing the date of its
annual meeting.
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: March 1, 2000 /s/ Bruce A. Beesley
------------------------ --------------------------------------------
Bruce A. Beesley, President and Chief
Executive Officer (Duly Authorized Officer)
Date: March 1, 2000 /s/ Debra K. Shields
------------------------ --------------------------------------------
Debra K. Shields, Vice President and
Chief Financial Officer (Principal Financial
and Accounting Officer)
<PAGE>
INDEX OF EXHIBITS
EXHIBIT DESCRIPTION
27 Financial Data Schedule (electronic filing only)
<TABLE> <S> <C>
<ARTICLE> 9
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> SEP-30-2000
<PERIOD-END> DEC-31-1999
<CASH> 1,673,204
<INT-BEARING-DEPOSITS> 1,364,189
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0
0
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</TABLE>
