SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
----------------------------------
FORM 10-Q
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 1996
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from to .
---------- ----------
Commission File Number: 0-26184
FIRST MUTUAL BANCORP, INC.
--------------------------
(Exact name of registrant as specified in its charter)
Delaware 37-1339075
-------- ----------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
135 East Main Street, Decatur, Illinois 62523
---------------------------------------------
(Address of principle executive offices)
Registrant's telephone number, including area code:
(217) 429-2306
--------------------------------------------------------------
Former name, former address and former fiscal year, if changed
since last report
Indicate by check [X] whether the Registrant (1) has filed
all reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months
(or for such shorter period that the Registrant was required to
file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
Yes [X] No [ ]
Yes [X] No [ ]
Indicate the number of shares outstanding of each of the
issuer's classes of common stock, as of the latest practicable
date: There were 4,700,000 shares of the Registrant's common
stock outstanding as of June 30, 1996. Included were 338,400
unearned ESOP shares.
<PAGE>
<PAGE>
FIRST MUTUAL BANCORP, INC.
INDEX
<TABLE>
<CAPTION>
Page
<S> <C>
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements 1
Consolidated Statements of Financial Condition
as of June 30, 1996, and December 31, 1995 2
Consolidated Statements of Income for the Three
and Six Months Ended June 30, 1996 and 1995 3
Consolidated Statements of Changes in
Stockholders' Equity for the Six Months Ended
June 30, 1996 4
Consolidated Statements of Cash Flows for the
Six Months Ended June 30, 1996 and 1995 5
Notes to Consolidated Financial Statements 7
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations 9
PART II. OTHER INFORMATION 13
</TABLE>
<PAGE>
<PAGE>
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
PAGE
<PAGE>
FIRST MUTUAL BANCORP, INC.
Consolidated Statements of Financial Condition
(Dollars in Thousands)
(Unaudited)
<TABLE>
<CAPTION>
June 30, December 31,
1996 1995
------------ -------------
<S> <C> <C>
ASSETS
Cash and cash equivalents $ 2,481 $ 3,005
Interest-bearing deposits with financial
institutions 11,457 13,735
Securities held-to-maturity
(Estimated fair value: June 30, 1996 $20,977) 20,997 --
(Estimated fair value: December 31, 1995 $20,075) -- 19,953
Securities available for sale 7,940 9,038
Loans held for sale 1,110 1,447
Loans receivable, net 245,697 218,179
Federal Home Loan Bank stock 2,033 1,920
Accrued interest receivable 2,173 1,944
Foreclosed real estate, net of allowance for losses 67 51
Premises and equipment 3,305 2,955
Cash surrender value of life insurance 3,139 3,070
Other assets 1,291 379
-------- --------
TOTAL ASSETS $301,690 $275,676
-------- --------
-------- --------
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES:
Deposits $201,335 $192,468
Advances from borrowers for taxes and insurance 1,354 1,411
Advances from Federal Home Loan Bank 27,300 4,100
Accrued expenses and other liabilities 2,256 6,169
-------- --------
TOTAL LIABILITIES 232,245 204,148
STOCKHOLDERS' EQUITY:
Common stock $.10 par value;
8,000,000 shares authorized;
issued 4,700,000 shares 470 470
Additional paid in capital 45,032 44,980
Unearned ESOP shares (3,384) (3,572)
Retained earnings, substantially restricted 30,340 29,604
Treasury stock at cost - 235,000 shares (2,988) --
Unrealized gain (loss) on securities available
for sale, net of tax (25) 46
-------- --------
TOTAL STOCKHOLDERS' EQUITY 69,445 71,528
-------- --------
-------- --------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $301,690 $275,676
-------- --------
-------- --------
Number of Shares Outstanding, Net of Unearned
ESOP Shares 4,126,600 4,342,800
Book Value Per Share $16.83 $16.47
</TABLE>
PAGE
<PAGE>
FIRST MUTUAL BANCORP, INC.
CONSOLIDATED STATEMENTS OF INCOME
(DOLLARS IN THOUSANDS)
(UNAUDITED)
<TABLE>
<CAPTION>
Six Months Ended June 30, Three Months Ended June 30,
------------------------- ---------------------------
1996 1995 1996 1995
--------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Interest income
Loans receivable
First mortgage loans $ 8,198 $ 7,552 $ 4,145 $ 3,849
Consumer and other loans 606 221 394 112
Commercial loans 220 21 115 20
Investment securities 878 614 428 316
Other interest-earning assets 391 206 195 153
--------- --------- --------- ---------
Total interest income 10,293 8,614 5,277 4,450
Interest expense
Deposits 4,685 4,496 2,348 2,369
Federal Home Loan Bank advances 380 234 261 123
Other 18 -- 18 --
--------- --------- --------- ---------
Total interest expense 5,083 4,730 2,627 2,492
--------- --------- --------- ---------
Net interest income 5,210 3,884 2,650 1,958
Provision for loan losses 50 -- 25 --
--------- --------- --------- ---------
Net interest income after provision
for loan losses 5,160 3,884 2,625 1,958
Noninterest income
Gain (loss) on sales of loans 116 31 47 26
Deposit service fee income 166 139 87 70
Loan servicing fees 61 56 31 28
Investment sales commissions 63 36 36 16
Other 128 133 64 71
--------- --------- --------- ---------
Total noninterest income 534 395 265 211
Noninterest expense
Compensation and benefits 1,853 1,464 965 735
Occupancy and equipment 378 304 203 154
SAIF deposit insurance premium 225 231 113 116
Advertising and promotion 219 120 143 67
Data processing 198 180 110 91
Printing, postage, stationery,
and supplies 131 104 73 42
Net expense on foreclosed
real estate operations 3 6 2 3
Net (gain) loss on sale of
real estate owned including
provisions for losses - 13 - 10
Other 491 304 280 163
--------- -------- --------- --------
Total noninterest expense 3,500 2,726 1,889 1,381
--------- -------- --------- --------
Income before income taxes 2,194 1,553 1,001 788
Income taxes 865 545 430 275
--------- -------- --------- --------
Net income 1,329 1,008 571 513
--------- -------- --------- --------
--------- -------- --------- --------
Average Number of Shares Outstanding,
Net of Unearned ESOP Shares 4,315,530 N/A 4,287,949 N/A
Earnings per Common Share 0.31 N/A 0.14 N/A
Dividends per Common Share
based on 4,700,000
Gross Outstanding Shares 0.14 N/A 0.07 N/A
</TABLE>
PAGE
<PAGE>
FIRST MUTUAL BANCORP, INC.
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
(DOLLARS IN THOUSANDS)
(UNAUDITED)
<TABLE>
<CAPTION>
Unrealized
Retained Gains (Losses)
Additional Unearned Earnings- on Securities
Common Paid-in ESOP Substantially Treasury Available
Stock Capital Shares Restricted Stock For Sale Total
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Balance at December 31, 1992 $ -- $ -- $ -- $23,421 $ -- $ -- $23,421
Net income -- -- -- 2,658 -- -- 2,658
Balance at December 31, 1993 -- -- -- 26,079 -- -- 26,079
Net income -- -- -- 1,732 -- -- 1,732
------- ------- ------- ------- ------- ------- -------
Balance at December 31, 1994 -- -- -- 27,811 -- -- 27,811
June 30, 1995 stock offering 470 44,930 (3,760) -- -- -- 41,640
ESOP shares earned
(7/1/95 - 12/31/95) -- 50 188 -- -- -- 238
Net income (1/1/95 - 12/31/95) -- -- -- 2,398 -- -- 2,398
Unrealized gain on securities
available for sale, net of tax -- -- -- -- -- 46 46
Cash dividends declared -- -- -- (605) -- -- (605)
------- ------- ------- ------- ------- ------- -------
------- ------- ------- ------- ------- ------- -------
Balance at December 31, 1995 470 44,980 (3,572) 29,604 -- 46 71,528
ESOP Shares Earned
(1/1/96 - 3/31/96) -- 5229 188 -- -- -- 240
Net Income
(1/1/96 - 3/31/96) -- -- -- 1,329 -- -- 1,329
Common stock purchased -- -- -- -- (2,988) -- (2,988)
Unrealized gain (loss) on
Securities net of tax -- -- -- -- -- (71) (71)
Cash dividends declared -- -- -- (593) -- -- (593)
------- ------- ------- ------- ------- ------- -------
Balance at June 30, 1996 $ 470 $45,009 ($3,384) $30,340 $(2,988) $ (25) $69,445
------- ------- ------- ------- ------- ------- -------
------- ------- ------- ------- ------- ------- -------
</TABLE>
PAGE
<PAGE>
FIRST MUTUAL BANCORP, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in Thousands)
(Unaudited)
<TABLE>
<CAPTION>
Six Months Ended June 30,
1996 1995
- ---------------------------------------------------------------------------------------------------
<S> <C> <C>
Cash flows from operating activities
Net income $ 1,329 $ 1,008
Adjustments to reconcile net income to
net cash from operating activities
Depreciation and amortization 165 134
Amortization of premiums and
discounts on mortgaged-backed
and investment securities, net 53 49
ESOP Compensation 240 --
Origination of loans held for sale (7,927) (5,245)
Proceeds from sale of loans 8,380 3,988
Change in net deferred loan
origination costs (84) (17)
Change in deferred income taxes 14 18
Provision for loan losses 50 --
Provision for losses on foreclosed real estate -- 8
Net (gain) loss on sales of loans (116) (31)
Federal Home Loan Bank stock dividends -- (29)
Net (gain) loss on sale of foreclosed
real estate -- 5
Change in
Accrued interest receivable (229) (98)
Cash surrender value of
life insurance (69) (71)
Other assets (893) 143
Accrued expenses and other
liabilities (4,200) 445
------- -------
Net cash provided by
operating activities (3,287) 307
Cash flows from investing activities
Net (increase) decrease in loans receivable (19,445) (416)
Proceeds from maturity of investment
securities - Held to Maturity 12,465 13,500
Proceeds from maturity of investment securities
Available for Sale 4,003 --
Purchase of investment securities - Held to Maturity (13,561) (9,040)
Purchase of investment securities - Available for Sale (3,022) --
Investments in
Loans purchased (8,051) (7,799)
Federal Home Loan Bank stock (113) --
Premises and equipment (503) (74)
Foreclosed real estate (5) (16)
Cash flows from investing activities (Continued)
Net (increase) decrease in interest-bearing
deposits with financial institutions 2,278 (27,826)
Proceeds from sales of foreclosed
real estate -- 147
------- -------
Net cash provided by (used in)
investing activities (25,954) (31,524)
Cash flows from financing activities
Net increase (decrease) in deposits 8,867 (4,156)
Net change in advances from
Federal Home Loan Bank 23,200 (19,600)
Net increase (decrease) in advances from
borrowers for taxes and insurance (57) 54
Proceeds from stock offering -- 41,640
Refunds due stock subscribers and accrued
stock offering expenses -- 11,390
Purchase of Treasury Stock (2,988) --
Dividends Paid (305) --
------- -------
Net cash provided by (used in)
financing activities 28,717 29,328
------- -------
Net increase (decrease) in cash and
cash equivalents (524) (1,889)
Cash and cash equivalents at beginning of period 3,005 2,180
------- -------
Cash and cash equivalents at end of period 2,481 291
------- -------
------- -------
Supplemental disclosures of cash flow
information
Cash paid for
Interest 5,077 4,524
Income taxes 974 462
Transfers from loans to real estate
acquired through foreclosure 49 94
Real estate owned sales financed
through loan origination -- 16
</TABLE>
<PAGE>
<PAGE>
Notes to Consolidated Financial Statements
(Unaudited)
(1) Basis of Presentation
The financial information of First Mutual Bancorp, Inc. (the
"Company") included herein is unaudited; however, such
information reflects all adjustments (consisting of normal
recurring adjustments) which are, in the opinion of management,
necessary for a fair statement of results for the interim
periods.
The financial information has been prepared in accordance with
generally accepted accounting principles for interim financial
information and with the instructions to Form 10-Q and Regulation
S-X. Accordingly, they do not include all the information and
footnotes required by generally accepted accounting principles
for complete financial statements.
The results of the interim periods ended June 30, 1996 are not
necessarily indicative of the results expected for the year
ending December 31, 1996.
(2) Conversion
On June 30, 1995, First Mutual Bank, S.B. (the "Bank") converted
from a state chartered mutual savings bank to a state charted
stock savings bank. The Bank issued all of its common stock to
the Company and at the same time the Company issued 4,700,000
shares of common stock at $10.00 per share to the ESOP, certain
depositors of the Bank, and certain members of the general
public, all pursuant to a plan of conversion (the "Conversion").
The ESOP purchased 376,000 shares of common stock representing 8%
of the total issued shares. The ESOP borrowed $3,760,000 from
the Company to purchase the stock using the stock as collateral
for the loan. The loan is to be repaid principally from the
Bank's contributions to the ESOP over a period of up to 10 years.
(3) Earnings Per Share of Common Stock
Primary and fully diluted earnings per share were computed by
dividing net income by 4,287,949, the weighted average number of
net shares of common stock outstanding during the quarter. There
were no outstanding stock options during the quarter.
(4) Accounting Changes
In June 1993, the Federal Accounting Standards Board (FASB)
issued Statement of Financial Accounting Standard (SFAS) No. 114,
"Accounting by Creditors for Impairment of a Loan". SFAS No. 114
<PAGE>
states that impaired loans will be recorded at the present value
of future principal and interest expected to be collected using
the loan's contractual interest rate adjusted for deferred fees
and unamortized premium/discounts. SFAS No. 114 is effective for
the Company in its fiscal year ended December 31, 1995. This
accounting change did not have a material impact on the capital,
financial condition or net income of the Company or the Bank.
Effective January 1, 1996, the Company will adopt Statement of
Financial Accounting Standards NO. 123 (SFAS 123), "Accounting
for Stock Based Compensation." This statement encourages
companies to use a fair value method to account for stock based
compensation plans. If such a method is not used, companies must
disclose the pro forma effect on net income and earnings per
share had this method been adopted. Management does not believe
that this statement will have a material effect on the Company.
In June, 1996, the Financial Accounting Standards Board released
Statement of Financial Accounting Standard No. 125, "Accounting
for Transfers and Extinguishments of Liabilities." SFAS No. 125
provides accounting, and reporting standards for transfers and
servicing of financial assets and extinguishments of liabilities.
SFAS No. 125 applies to transfers and extinguishments occurring
after December 31, 1996 and early or retroactive application is
not permitted. Management anticipates that the adoption of SFAS
No. 125 will not have a material impact on the financial
condition or operations of the Bank.
(5) Use of Estimates in the Preparation of Financial Statements
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 disclosure 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.
<PAGE>
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations
Financial Condition
Total assets increased $26.0 million, or 9.4%, to $301.7 million
at June 30, 1996 from $275.7 million at December 31, 1995.
Loans receivable (excluding loans held for sale) increased $27.5
million, or 12.6%, to $245.7 million at June 30, 1996, from
$218.2 million at December 31, 1995, reflecting the continuing
deployment of capital raised in the conversion and the increase
in loan originations. In addition to a $10.4 million, or 5.0%,
increase in real estate loans, consumer and other loans increased
$14.8 million, or 214.5%, to $21.7 million at June 30, 1996, from
$6.9 million at the end of the earlier period. The increase in
consumer and other loans was primarily due to the origination of
$14.6 million in indirect dealer auto loans during 1996.
Deposits increased $8.8 million, or 4.6% from $192.5 million at
December 31, 1995, to $201.3 million at June 30, 1996. This
increase was primarily due to offering new deposit products and
more competitive rates in order to attract additional depositors
to fund increases in loans receivable.
Advances from the Federal Home Loan Bank increased by $23.2
million from $4.1 million at December 31, 1995, to $27.3 million
at June 30, 1996. This increase was primarily due to fund the
increase in loans receivable.
Accrued expenses and other liabilities decreased $3.9 million
from $6.2 million at December 31, 1995, to $2.3 million at June
30, 1996. This decrease was primarily due to the decrease in
outstanding loan disbursement checks from the earlier period.
Non-performing assets were $1,033,000 as of June 30, 1996, and
$767,000 as of December 31, 1995. The following table sets forth
the amounts and categories of non-performing assets.
<TABLE>
<CAPTION>
June 30, 1996 December 31, 1995
-------------- -----------------
<S> <C> <C>
Non-Performing Loans:
One to four family $ 929 $705
Consumer 37 11
------ ----
Total 966 716
Total Real Estate Owned 67 51
------ ----
Total Non-performing assets $1,033 $767
------ ----
------ ----
Total Non-performing assets
to total assets .34% .28%
<PAGE>
<PAGE>
Liquidity and Capital Resources
- -------------------------------
The Company's primary sources of funds are deposits, funds
received from the sale, amortization, and prepayment of loans,
advances from the Federal Home Loan Bank, and funds provided from
operations. While scheduled loan repayments are a relatively
predictable source of funds, deposit flows and loan prepayments
are greatly influenced by general interest rates, economic
conditions and competition. The Company also borrows funds from
the Federal Home Loan Bank based on need, comparative costs, and
availability at the time. Assets of the Company qualifying for
regulatory liquidity totaled $42.4 million at June 30, 1996.
As of June 30, 1996, the Company had total equity capital of
$69.4 million. All the minimum levels of regulatory capital
required by the Federal Reserve Board for the Company and the
Federal Deposit Insurance Corporation for the Bank were met.
Results of Operations
- ---------------------
General. Net income for the three months ended June 30, 1996,
was $571,000 compared to $513,000 for the same period in 1995.
The increase was primarily due to the increase in net interest
income of $692,000 to $2,650,000 for the three months ended June
30, 1996, compared to $1,958,000 for the same period in 1995.
This was partially offset by the increase in non-interest expense
of $508,000 to $1,889,000 for the three months ended June 30,
1996 compared to $1,381,000 for the earlier period. The increase
in net interest income was primarily due to the increase in
interest earning assets as a result of the $41.6 million in net
proceeds received from the stock conversion, which closed June
30, 1995. The increase in non-interest expense was primarily due
to the increase in compensation and benefits and other expenses.
Net income for the six months ended June 30, 1996, was $1,329,000
compared to $1,008,000 for the same period in 1995. This
increase was also primarily attributable to the increase in net
interest income of $1,326,000 to $5,210,000 in 1996 from
$3,884,000 during the same period in 1995. This increase was
partially offset by the $774,000 increase in non-interest expense
from the earlier period. The increase in net interest income was
primarily due to the net proceeds received from the stock
conversion. The increase in non-interest expense was primarily
due to the increase in compensation and benefits and other
expenses.
The Bank's deposit liabilities are insured by the SAIF fund of
the FDIC. Separate bills approved by the United States Senate
provide for a one-time surcharge of approximately .80% to .90% on
SAIF-insured deposits to recapitalize the SAIF. If such bills
become law, this one-time surcharge would amount to a charge to
Company earnings of approximately $1.6 million to $1.8 million
<PAGE>
based on the March 31, 1995 assessment base.
Interest Income. Interest income for the three months ended June
30, 1996, increased $827,000, or 18.6%, and $1,679,000, or 19.5%
for the six months ended June 30, 1996, from the earlier periods.
The increases were primarily due to the increase in average
earning assets of $38.3 million, or 15.6%, for the three months
and $41.5 million, or 17.6%, for the six months ended June 30,
1996, as compared to the same periods in 1995, reflecting
primarily the investment of proceeds from the initial stock
offering and the increase in loan originations during 1996. To a
lesser extent, the increase in interest income was also due to
the increased average yield on earning assets, which increased to
7.43% from 7.25% for the three month period and 7.41% from 7.29%
for the six month period.
Interest Expense. Interest expense increased $135,000, or 5.4%,
for the three months ended June 30, 1996, and $353,000, or 7.5%,
for the six months ended June 30, 1996, as compared to the same
periods in 1995, primarily due to the increase in average
interest paying liabilities which increased $15.3 million, or
7.5%, for the three month period and $7.7 million, or 3.8% for
the six month period.
Net Interest Income. Net interest income increased $692,000, or
35.3%, for the three months ended June 30, 1996, and $1,326,000,
or 34.1%, for the six months ended June 30, 1996, as compared to
the same periods in 1995. The increases were primarily due to
the increase in average earning assets of $38.3 million for the
three month period and $41.5 million for the six month period,
reflecting primarily the investment of proceeds from the initial
stock offering.
Provisions for Loan Losses. The Bank maintains an allowance for
loan losses based upon management's periodic evaluation of known
and inherent risks in the loan portfolio including commercial
real estate and commercial business loans, the Bank's past loss
experience, adverse situations that may affect borrowers' ability
to repay loans, estimated value of underlying loan collateral,
current and to a lesser extent, expected future economic
conditions. During the three and six months ended June 30, 1996,
$25,000 and $50,000 provision for loan losses were recorded
primarily as a result of the overall increase in the loan
portfolio, as well as changes in the loan portfolio mix,
especially the increase in commercial and consumer loans. Bank
management did not make any provision to the allowance for loan
losses for the same period in 1995. This lack of provision was
indicative of management's assessment of the adequacy of the
allowance, given the trends in historical loss experience of the
portfolio and the then current economic conditions. The Bank's
ratio of allowance for loan losses to non-performing loans was
129.92% at June 30, 1996, compared to 163.69% at December 31,
1995.
<PAGE>
Non-Interest Income. Non-interest income, consisting primarily
of service charges and fees on loans and deposit accounts, net
gain on sale of mortgage loans, investment sales commissions, and
loan servicing fees increased $54,000, or 25.6%, for the three
months ended June 30, 1996, as compared to the same period in
1995. This was primarily due to the $21,000 increase in the net
gain on sale of mortgage loans, $20,000 increase in investment
sales commissions, and the $17,000 increase in deposit service
fee income. Non-interest income increased $139,000, or 35.2%,
for the six months ended June 30, 1996, as compared to the
earlier period. This was primarily due to the $85,000 increase
in net gain on sale of mortgage loans and to a lesser extent, the
$27,000 increase in deposit service fee income. A large part of
the increase in the net gain on sale of mortgage loans was due to
the implementation of FASB 122, which provides for the
capitalization of originated mortgage servicing rights.
Approximately $32,000 of originated mortgage servicing rights was
capitalized during the three months ended June 30, 1996 and
approximately $73,000 was capitalized during the six months ended
June 30, 1996.
Non-Interest Expense. Non interest expense, consisting primarily
of employee compensation and benefits, premises and equipment
expenses, federal deposit insurance premiums, data processing,
advertising and promotion, and other miscellaneous items
increased $508,000, or 36.8% for the three months ended June 30,
1996, as compared to the same period in 1995, primarily due to
the increase in compensation and benefits of $230,000 or 31.3%,
and to a lesser extent to the increase in other expenses of
$117,000, or 71.8%, from the earlier period. The increase in
other expenses is primarily due to the additional expenses
incurred related to being a public company. Non interest expense
increased $774,000, or 28.4%, for the six months ended June 30,
1996, as compared to the earlier period, primarily due to the
increase in compensation and benefits of $389,000, or 26.6%, and
to a lesser extent to the increase in other expenses of $187,000,
or 61.5%, from the earlier period. A large part of the increase
in other expenses was due to the additional expenses incurred
related to being a public company.
Income Tax Expenses. Income tax expenses increased $155,000, or
56.4%, for the three months ended June 30, 1996, and $320,000, or
58.7%, for the six months ended June 30, 1996, as compared to the
same periods in 1995 as a result of the increased earnings before
taxes and the result of an audit by the State of Illinois
Department of Revenue for years prior to 1995.
<PAGE>
<PAGE>
PART II. OTHER INFORMATION
ITEM 1. Legal Proceedings
There are no material pending legal proceedings to
which the Company or any of its subsidiaries is a party
other than ordinary routine litigation incidental to
their respective businesses.
ITEM 2. CHANGES IN SECURITIES
NONE
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
NONE
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
NONE
ITEM 5. OTHER INFORMATION
NONE
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
NONE
PAGE
<PAGE>
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) 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.
FIRST MUTUAL BANCORP, INC.
(Registrant)
Date: 8/13/96 By: (S) Philip Duffy
Philip Duffy
Senior Vice President
Date: 8/13/96 By: (S) G. Lynn Brinkman
G. Lynn Brinkman
Vice President,
Secretary, Treasurer and
Chief Financial Officer
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 9
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> JUN-30-1996
<CASH> 2481
<INT-BEARING-DEPOSITS> 11457
<FED-FUNDS-SOLD> 0
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 7940
<INVESTMENTS-CARRYING> 20997
<INVESTMENTS-MARKET> 20977
<LOANS> 246807
<ALLOWANCE> 1255
<TOTAL-ASSETS> 301690
<DEPOSITS> 201335
<SHORT-TERM> 15800
<LIABILITIES-OTHER> 3610
<LONG-TERM> 11500
<COMMON> 470
0
0
<OTHER-SE> 68975
<TOTAL-LIABILITIES-AND-EQUITY> 301690
<INTEREST-LOAN> 4654
<INTEREST-INVEST> 428
<INTEREST-OTHER> 195
<INTEREST-TOTAL> 5277
<INTEREST-DEPOSIT> 2348
<INTEREST-EXPENSE> 2627
<INTEREST-INCOME-NET> 2650
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<EPS-PRIMARY> 0.14
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<YIELD-ACTUAL> 3.73
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</TABLE>
