<PAGE> 1
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 1998
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 0-26242
FORT THOMAS FINANCIAL CORPORATION
- -------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
<TABLE>
<S> <C>
Ohio 61-1278396
--------------------------------------------------------------- ----------------------
(State or other jurisdiction of incorporation or organization) (I.R.S. Employer
Identification Number)
</TABLE>
<TABLE>
<S> <C>
25 North Fort Thomas Avenue
Fort Thomas, Kentucky 41075
------------------------------------------------------- ----------------
(Address of principal executive office) (Zip Code)
</TABLE>
(606) 441-3302
----------------------------------------------------
(Registrant's telephone number, including area code)
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 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
---- ----
Indicate the number of shares outstanding of each of the issuer's
classes of common stock, as of the latest practicable date: As of May 11,
1998, there were issued and outstanding 1,474,321 shares of the Registrant's
Common Stock, par value $.01 per share.
<PAGE> 2
FORT THOMAS FINANCIAL CORPORATION AND SUBSIDIARY
TABLE OF CONTENTS
<TABLE>
<CAPTION>
PAGE
----
PART I. FINANCIAL INFORMATION
- ------- ---------------------
<S> <C>
Item 1. Consolidated Financial Statements
Consolidated Statement of Financial Condition
(As of September 30, 1997 and March 31, 1998 (unaudited)) 1
Consolidated Statements of Income for the three and six months
ended March 31, 1998 (unaudited) and 1997 (unaudited) 2
Consolidated Statements of Cash Flows for the six
months ended March 31, 1998 (unaudited) and 1997 (unaudited) 3
Notes to Unaudited Consolidated Financial Statements 4
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations 5
PART II. OTHER INFORMATION
- -------- -----------------
Item 1. Legal Proceedings 12
Item 2. Changes in Securities and Use of Proceeds 12
Item 3. Defaults Upon Senior Securities 12
Item 4. Submission of Matters to a Vote of Security Holders 12
Item 5. Other Information 12
Item 6. Exhibits and Reports on Form 8-K 12
</TABLE>
SIGNATURES
<PAGE> 3
FORT THOMAS FINANCIAL CORPORATION AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
<TABLE>
<CAPTION>
March 31, September 30,
1998 1997
--------------------- ----------------------
(In Thousands)
<S> <C> <C>
ASSETS
Cash and Due From Banks $4,106 $ 2,186
Investment Securities at Amortized Cost 2,499 2,990
Mortgage-Backed Securities Available for Sale -
At Market Value -- 798
Loans Receivable, Net 91,381 88,452
Office Properties and Equipment - At
Depreciated Cost 544 570
Federal Home Loan Bank Stock
(FHLB) - At Cost 814 785
Cash Surrender Value of Life Insurance 1,137 1,114
Accrued Interest Receivable 816 771
Prepaid and Other Assets 116 93
Deferred Federal Income Tax Asset 187 86
-------- ---------
TOTAL ASSETS $101,600 $97,847
======= ======
LIABILITIES
Deposits $74,793 $71,858
Borrowed funds 9,637 8,846
Advances from Borrowers for Taxes and
Insurance 104 229
Deferred Compensation 532 504
Accrued Interest Payable 70 59
Accrued Federal Income Taxes (7) (29)
Other Liabilities 450 592
-------- --------
TOTAL LIABILITIES $85,579 $82,059
------ ------
STOCKHOLDERS' EQUITY
Common Stock, $.01 Par Value;
4,000,000 Shares Authorized; 1,474,321
Shares and 1,495,086 Shares
Outstanding, respectively 16 16
Additional Paid-in Capital 9,466 9,436
Unearned ESOP Shares (692) (744)
MRP Trust (611) (672)
Retained Earnings -- Substantially
Restricted 9,222 8,852
Treasury Stock (1,380) (1,103)
Unrealized Gain on Investment
Security -- 1
---------- -------
TOTAL STOCKHOLDERS' EQUITY 16,021 15,786
------- -------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $101,600 $ 97,845
======= =======
</TABLE>
1
<PAGE> 4
FORT THOMAS FINANCIAL CORPORATION AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
March 31, March 31,
------------------------------ --------------------------------
1998 1997 1998 1997
---------- ------------ ------------- --------------
(Dollars in thousands except earnings per share)
<S> <C> <C> <C> <C>
Interest Income
Interest on loans $2,007 $1,824 $3,984 $3,591
Interest on investment securities 47 64 95 129
Interest on mortgage-backed
securities -- 13 1 23
Other interest and dividends 64 44 112 90
------ ----- ----- -----
Total interest income 2,118 1,945 4,192 3,833
----- ----- ----- -----
Interest Expense
Deposits 974 880 1,945 1,728
Borrowed funds 157 132 295 248
----- ----- ----- -----
Total interest expense 1,131 1,012 2,240 1,976
----- ----- ----- -----
Net interest income 987 933 1,952 1,856
-----
Provision for loan losses 12 101 24 113
----- ----- ----- -----
Net interest income after
provision for loan losses 975 832 1,928 1,743
----- ----- ----- -----
Other Income 62 44 137 93
----- ----- ----- ------
Other Expenses
Salaries and employee
benefits 305 262 585 566
Franchise and other taxes 36 30 72 60
Federal insurance premium 11 11 22 48
Expenses of premises and
fixed assets 41 42 84 86
Data processing and related
contract services 46 41 79 71
Other operating expense 204 150 356 295
----- ----- ----- -----
Total other expenses 643 536 1,198 1,126
----- ----- ----- -----
Income before income tax 394 340 867 711
Federal income tax expense 144 116 313 227
----- ----- ----- -----
Net income $ 250 $ 224 $ 554 $ 483
===== ===== ===== =====
Earnings per share:
Basic $ 0.18 $ 0.15 $ 0.39 $ 0.33
====== ====== ===== ======
Fully diluted $ 0.17 $ 0.15 $ 0.37 $ 0.31
====== ====== ===== ======
</TABLE>
2
<PAGE> 5
FORT THOMAS FINANCIAL CORPORATION AND SUBSIDIARY
STATEMENTS OF CASH FLOWS
(UNAUDITED)
<TABLE>
<CAPTION>
Six Months Ended
March 31,
----------------------------
1998 1997
---------- -----------
(In Thousands)
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net income 554 484
Reconciliation of net income with cash flows from
operations:
Allowance for losses on loans 24 113
Depreciation 33 40
Deferred income taxes (100) (13)
Amortization (125) (137)
FHLB stock dividends (29) (24)
ESOP and stock compensation 77 93
(Gain) loss on REO -- --
Changes in
Accrued interest receivable (47) (87)
Prepaid and other assets (24) 18
Cash surrender value of life insurance (23) (23)
Deferred compensation 28 63
Accrued interest payable 11 (1)
Accrued income tax 22 75
Other liabilities (142) (426)
----- -----
NET CASH PROVIDED BY OPERATING ACTIVITIES 259 175
----- -----
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of investment securities (1,000) (1,491)
Maturity of investment securities 791 1,000
Sale of investment securities 1,499 --
Loan originations and repayments, net (2,994) (6,222)
Principal received on mortgage-backed security (5) 19
REO expenses (19) --
Proceeds from sale of REO 203 --
Purchase of office properties and equipment (7) (2)
------- --------
NET CASH USED BY INVESTING ACTIVITIES (1,532) (6,696)
------- -------
CASH FLOWS FROM FINANCING ACTIVITIES
Net increase in deposits 2,936 4,784
Dividends paid (184) (190)
ESOP Shares released 51 52
Common Stock shares purchased for treasury (277) (1,102)
Advance from borrowers for taxes and insurance (124) (89)
Repayments of borrowings (9,908) (603)
Proceeds from borrowings 10,700 3,550
------ -----
NET CASH PROVIDED BY FINANCING ACTIVITIES 3,194 6,402
------ -----
CHANGES IN CASH AND CASH EQUIVALENTS 1,920 (119)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 2,186 1,785
------ -----
CASH AND CASH EQUIVALENTS, END OF PERIOD $4,106 $ 1,666
===== =====
</TABLE>
3
<PAGE> 6
FORT THOMAS FINANCIAL CORPORATION
AND SUBSIDIARY
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
Note 1 - Basis of Presentation
Fort Thomas Financial Corporation (the "Corporation") was incorporated
under Ohio law in March 1995 by Fort Thomas Federal Savings and Loan
Association (the "Association") in connection with the conversion of
the Association from a federally chartered mutual savings and loan
association to a federally chartered stock savings bank, known as Fort
Thomas Savings Bank, F.S.B. (the "Bank"), the issuance of the Bank's
stock to the Corporation and the offer and sale of the Corporation's
common stock by the Corporation (the "Conversion"). Upon consummation
of the Conversion on June 27, 1995, the Corporation became the unitary
holding company for the Bank.
The accompanying unaudited consolidated financial statements of the
Corporation have been prepared in accordance with instructions to Form
10-Q. Accordingly, they do not include all of the information and
footnotes required by generally accepted accounting principles for
complete financial statements. However, such information reflects all
adjustments (consisting solely of normal recurring adjustments) which
are, in the opinion of management, necessary for a fair statement of
results for the interim periods.
The results of operations for the three and six months ended March 31,
1998 are not necessarily indicative of the results to be expected for
the year ending September 30, 1998. The unaudited consolidated
financial statements and notes thereto should be read in conjunction
with the audited financial statements and notes thereto for the year
ended September 30, 1997 contained in the Corporation's 1997 Annual
Report.
Note 2 - Earnings Per Share
The average number of common shares used to calculate earnings per
share were as follows:
<TABLE>
<CAPTION>
Three Months Ended March 31, Six Months Ended March 31,
------------------------------ --------------------------------
1998 1997 1998 1997
---------- ---------- --------------- ------------
<S> <C> <C> <C> <C>
Basic weighted -
average shares 1,402,661 1,457,161 1,404,445 1,465,222
Diluted weighted -
average shares 1,482,116 1,539,292 1,482,903 1,548,675
</TABLE>
4
<PAGE> 7
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
FINANCIAL CONDITION
At March 31, 1998, the Corporation's assets amounted to $101.6 million
as compared to $97.8 million at September 30, 1997. The $3.8 million or 1.0%
increase was primarily due to an increase in loans receivable, net. Such
increase was funded primarily by an increase in deposits and borrowed funds.
Stockholders' equity increased $235,000 to $16.0 million or 15.8% of total
assets at March 31, 1998 compared to $15.8 million or 16.1% at September 30,
1997. The increase in stockholders' equity was primarily due to continued
profitable operations partially offset by cash dividends and repurchases of
common stock.
ASSET QUALITY
Loans are placed on nonaccrual status when, in the judgment of
management, the probability of collection of interest is deemed to be
insufficient to warrant further accrual. When a loan is placed on nonaccrual
status, previously accrued but unpaid interest is deducted from interest
income. The Bank does not accrue interest on real estate loans past due 90
days or more. Loans may be reinstated to accrual status when all payments are
brought current and, in the opinion of management, collection of the remaining
balance can be reasonably expected.
DELINQUENT LOANS
The following table sets forth information concerning delinquent loans
in dollar amounts and as a percentage of each category of the Bank's loan
portfolio at March 31, 1998. The amounts presented represent the total
outstanding principal balances of the related loans, rather than the actual
payment amounts that are past due.
<TABLE>
<CAPTION>
Percent of Corresponding
Loans Delinquent For Loan Categories
--------------------------------- ----------------------------------
30-89 90 Days 30-89 90 Days
Days and Over Total Days and Over Total
-------- ----------- ------- --------- ----------- ---------
(Dollars in Thousands)
<S> <C> <C> <C> <C> <C> <C>
One- to four-family residential $2,867 $1,366 $4,233 4.19% 2.00% 6.19%
Multi-family and non-
residential 157 776 933 1.34 6.63 7.97
Construction and land 314 100 414 5.66 1.80 7.46
Consumer -- 9 9 -- 0.74 0.74
------ ------ ------
Total delinquent loans $3,338 $2,251 $5,589
===== ===== =====
</TABLE>
5
<PAGE> 8
The following table sets forth the amounts and categories of the
Bank's non-performing assets at the dates indicated.
<TABLE>
<CAPTION>
March 31, September 30,
--------------------------------- ------------------
1998 1997 1997
--------------- ------------- ------------------
(Dollars in Thousands)
<S> <C> <C> <C>
Non-accruing loans:
One- to four-family
residential (1) $1,273 $1,562 $1,266
Multi-family and non-
residential real estate 776 54 360
Construction and land 100 207 309
Consumer -- -- --
Accruing consumer loans
greater than 90 days
delinquent: 102 93 2
----- ------ -------
Total non-performing loans 2,251 1,916 1,937
----- ----- -----
Real estate acquired through
foreclosure -- -- --
------- ------- -------
Total non-performing assets $2,251 $1,916 $1,937
===== ===== =====
Total non-performing
assets as a percentage of
total loans 2.59% 2.20% 2.19%
==== ==== ====
Total non-performing
assets as a percentage of
total assets 2.25% 2.02% 1.98%
==== ==== ====
</TABLE>
- ------------------------------
(1) Includes second mortgage loans.
The $2.3 million of nonaccruing loans at March 31, 1998 consisted of
40 loans with an average balance of approximately $59,000. Interest that would
have been earned on these loans, if they had been accounted for on an accruing
basis during the six month period would have been approximately $45,000.
Substantially all of the loans are extended to separate borrowers.
6
<PAGE> 9
CLASSIFIED ASSETS
Federal regulations require that each insured savings association
classify its assets on a regular basis. In addition, in connection with
examinations of insured institutions, federal examiners have authority to
identify problem assets and, if appropriate, classify them. There are three
classifications for problem assets: "substandard", "doubtful" and "loss."
Substandard assets have one or more defined weaknesses and are characterized by
the distinct possibility that the insured institution will sustain some loss if
the deficiencies are not corrected. Doubtful assets have the weaknesses of
substandard assets with the additional characteristic that the weaknesses make
collection or liquidation in full on the basis of currently existing facts,
conditions and values questionable, and there is a high possibility of loss.
An asset classified loss is considered uncollectible and of such little value
that continuance as an asset of the institution is not warranted. At March 31,
1998, the Bank had $2.3 million of loans which were classified as substandard
$20,000 of loans classified as doubtful and $9,000 of loans classified as loss.
ALLOWANCE FOR LOAN LOSSES
It is management's policy to maintain an allowance for estimated
losses based on the perceived risk of loss in the loan portfolio. In assessing
risk, management considers historical loss experience, the volume and type of
lending conducted by the Bank, industry standards, past due loans, general
economic conditions and other factors related to the collectibility of the loan
portfolio. The allowance is increased by provisions for loan losses which are
charged against income.
Although management uses the best information available to make
determinations with respect to the provisions for loan losses, additional
provisions for loan losses may be required to be established in the future
should economic or other conditions change substantially. In addition, the OTS
and the FDIC, as an integral part of their examination process, periodically
review the Bank's allowance for possible loan losses. Such agencies may
require the Bank to recognize additions to such allowance based on their
judgments about information available to them at the time of their examination.
7
<PAGE> 10
The following table summarizes changes in the allowance for loan
losses and other selected statistics for the periods presented.
<TABLE>
<CAPTION>
Six Months Ended Year Ended
March 31, September 30,
------------------------------- ----------------------
1998 1997 1997
-------------- ------------ ----------------------
(Dollars in Thousands)
<S> <C> <C> <C>
Average loans receivable, net $90,633 $82,482 $83,912
------ ------ ------
Allowance for loan losses
Balance at beginning of period $ 476 $ 366 $ 366
Net (charge-offs) recoveries (41) -- (27)
Provision for loan losses 12 113 (137)
------ ------ --------
Balance at end of period $ 447 $ 479 $ 476
====== ====== ======
Net loans (charged-off)
recovered to average loans (0.05)% -- (0.03)%
====== ====== ======
Allowance for loan losses to
total loans 0.51% 0.55% 0.32%
==== ===== =====
Allowance for loan losses to
total non-performing loans 19.86% 25.00% 19.20%
===== ===== =====
Net loans (charged-off)
recovered to allowance for
loan losses (9.17)% -- 7.95%
======= ===== =====
</TABLE>
The following table presents the allocation of the allowance for loan
losses to the total amount of loans in each category listed at the date
indicated.
<TABLE>
<CAPTION>
March 31, 1998
---------------------------------------------------
Percent of Loans
in Each Category
Amount to Total Loans
-------------------- --------------------------
(Dollars in Thousands)
<S> <C> <C>
One- to four-family residential $262 79.34%
Multi-family residential 100 12.32
Land and construction 75 7.11
Consumer loans 10 1.23
---- ------
Total $447 100.00%
=== ======
</TABLE>
8
<PAGE> 11
RESULTS OF OPERATIONS FOR THE THREE MONTHS ENDED MARCH 31, 1998 AND 1997
GENERAL. The Corporation reported net income of $250,000 during the
three months ended March 31, 1998 compared to $224,000 during the three months
ended March 31, 1997. Such increase was due to increases in net interest
income and other income, as well as a decrease in the provision for loan
losses, partially offset by an increase in other expenses.
INTEREST INCOME. Interest income increased $173,000 to $2.1 million
for the three months ended March 31, 1998 compared to the same period in 1997.
The increase during the 1998 period was due to an increase in the average
outstanding balance of the Corporation's loan portfolio. Such increase was due
to continued loan demand and portfolio growth. The average yield earned on the
Corporation's interest-earning assets was 8.52% for the three months ended
March 31, 1998 compared to an 8.60% yield for the same period in 1997.
INTEREST EXPENSE. Interest expense increased $119,000 or 8.9% to $1.1
million for the three months ended March 31, 1998 compared to the same period
in 1997. Such increase was primarily due to an increase in the average
outstanding balance of deposits and borrowed funds. The increase in the
average balance of deposits reflects the increase in certificate of deposit
accounts. The increase in the average balance of borrowed funds was due to
increased funding needs. The average rate paid on the Corporation's
interest-bearing liabilities increased to 5.38% for the three months ended
March 31, 1998 compared to 5.35% for the same period in 1997.
PROVISION FOR LOSSES ON LOANS. The provision for losses on loans
amounted to $12,000 and $101,000 for the three months ended March 31, 1998 and
1997, respectively. The decrease in the provision for losses on loans was due
to the perceived adequacy of the allowance for loan losses.
OTHER INCOME. Other income increased $18,000 or 7.1% during the three
months ended March 31, 1998 compared to the same period in 1997 due primarily
to an increase in fees and charges relating to loans.
OTHER EXPENSES. Operating expenses increased $107,000 or 8.3% for the
three months ended March 31, 1998 compared to the same period in 1996. Such
increase was primarily due to an increase in salaries and employee benefits and
an increase in miscellaneous other expenses.
RESULTS OF OPERATIONS FOR THE SIX MONTHS ENDED MARCH 31, 1998 AND 1997
GENERAL. The Corporation reported net income of $554,000 for the six
months ended March 31, 1998 compared to $484,000 during the six months ended
March 31, 1997. Such
9
<PAGE> 12
increase was primarily due to increases in net interest income and other
income, as well as a decrease in the provision for loan losses, partially
offset by an increase in other expenses.
INTEREST INCOME. Interest income increased $359,000 or 9.1% to $4.2
million for the six months ended March 31, 1998 compared to the same period in
fiscal 1997. The increase during the fiscal 1998 period was due to an increase
in the average outstanding balance of the Corporation's loan portfolio. The
increase in the average balance of the loan portfolio was due to continued loan
demand and portfolio growth. The average yield on the Corporation's
interest-earning assets was 8.56% for the six months ended March 31, 1998
compared to 8.60% for the same period in 1997.
INTEREST EXPENSE. Interest expense increased $264,000 or 8.8% to $2.2
million for the six months ended March 31, 1998 compared to $2.0 million for
the six months ended March 31, 1997. Such increase was primarily due to an
increase in the average outstanding balance of time deposits. The increase in
the average balance of deposits reflects the increase in certificate of deposit
accounts. The average rate paid on the Corporation's interest-bearing
liabilities increased to 5.42% for the six months ended March 31, 1998 compared
to 5.33% for the same period in 1997.
PROVISION FOR LOSSES ON LOANS. The provision for losses on loans
amounted to $24,000 and $113,000 for the six months ended March 31, 1998 and
1997, respectively. The decrease in the provision for losses on loans was due
to the perceived adequacy of the allowance for loan losses.
OTHER INCOME. Other income increased $44,000 or 6.8% to $137,000
during the six months ended March 31, 1998 compared to the six months ended
March 31, 1997 due to an increase in fees and charges relating to loans.
OTHER EXPENSES. Operating expenses increased $72,000 or 9.4% to $1.2
million for the six months ended March 31, 1998 compared to the same period in
fiscal 1997. Such increase was primarily due to increases in salaries and
employee benefits and other miscellaneous expenses. The increase in salaries
and employee benefits was due to normal merit increases.
LIQUIDITY AND CAPITAL RESOURCES
The Bank's liquidity, represented by cash and cash equivalents, is a
product of its operating, investing and financing activities. The Bank's
primary sources of funds are deposits, borrowings, amortization, prepayments
and maturities of outstanding loans, sales of loans, maturities of investment
securities and other short-term investments and funds provided from operations.
Although scheduled loan amortization and maturing investment securities and
short-term investments are relatively predictable sources of funds, deposit
flows and loan prepayments are greatly influenced by general interest rates,
economic conditions and competition. The Bank manages the pricing of its
deposits to maintain a
10
<PAGE> 13
steady deposit balance. In addition, the Bank invests excess funds in
overnight deposits and other short-term interest-earning assets which provide
liquidity to meet lending requirements. The Bank generally has been able to
generate enough cash through the retail deposit market, its traditional funding
source, to offset the cash utilized in investing activities. As an additional
source of funds, the Bank may borrow from the FHLB of Cincinnati and has access
to the Federal Reserve discount window. At March 31, 1998, the Bank had $9.6
million of outstanding advances from the FHLB of Cincinnati.
As of March 31, 1998, the Bank's regulatory capital was well in excess
of all applicable regulatory requirements. At March 31, 1998, the Bank's
tangible, core and risk-based capital ratios amounted to 15.06%, 15.06% and
24.13%, respectively, compared to regulatory requirements of 1.5%, 3.0% and
8.0%, respectively.
YEAR 2000. The Company outsources its primary data processing
functions. A challenging problem exists as the millennium ("year 2000")
approaches as many computer systems worldwide do not have the capability of
recognizing the year 2000 or years thereafter. To date, the Company has
received confirmations from its primary vendors that plans have been developed
by them to address and correct the issues associated with the year 2000
problem.
11
<PAGE> 14
FORT THOMAS FINANCIAL CORPORATION AND SUBSIDIARY
PART II
Item 1. Legal Proceedings
Neither the Corporation nor the Bank is involved in any pending legal
proceedings other than non-material legal proceedings occurring in the
ordinary course of business.
Item 2. Changes in Securities
Not applicable.
Item 3. Defaults Upon Senior Securities
Not applicable.
Item 4. Submission of Matters to a Vote of Security Holders
Not applicable - previously reported.
Item 5. Other Information
None.
Item 6. Exhibits and Reports on Form 8-K
None.
12
<PAGE> 15
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.
FORT THOMAS FINANCIAL CORPORATION
Date: May 6, 1998 By: /s/Larry N. Hatfield
--------------------------------------
Larry N. Hatfield
President and Chief Executive Officer
Date: May 6, 1998 By: /s/J. Michael Lonnemann
--------------------------------------
J. Michael Lonnemann
Vice President, Secretary and Principal
Financial Officer
<TABLE> <S> <C>
<ARTICLE> 9
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> SEP-30-1998
<PERIOD-END> MAR-31-1998
<CASH> 234
<INT-BEARING-DEPOSITS> 3,872
<FED-FUNDS-SOLD> 0
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 0
<INVESTMENTS-CARRYING> 2,479
<INVESTMENTS-MARKET> 0
<LOANS> 91,828
<ALLOWANCE> 447
<TOTAL-ASSETS> 101,600
<DEPOSITS> 74,793
<SHORT-TERM> 0
<LIABILITIES-OTHER> 450
<LONG-TERM> 9,637
0
0
<COMMON> 16
<OTHER-SE> 16,005
<TOTAL-LIABILITIES-AND-EQUITY> 101,600
<INTEREST-LOAN> 2,007
<INTEREST-INVEST> 47
<INTEREST-OTHER> 64
<INTEREST-TOTAL> 2,118
<INTEREST-DEPOSIT> 974
<INTEREST-EXPENSE> 1,131
<INTEREST-INCOME-NET> 987
<LOAN-LOSSES> 12
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 204
<INCOME-PRETAX> 394
<INCOME-PRE-EXTRAORDINARY> 250
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 250
<EPS-PRIMARY> .18
<EPS-DILUTED> .17
<YIELD-ACTUAL> 8.52
<LOANS-NON> 2,149
<LOANS-PAST> 102
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 476
<CHARGE-OFFS> 41
<RECOVERIES> 0
<ALLOWANCE-CLOSE> 447
<ALLOWANCE-DOMESTIC> 0
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
