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 DECEMBER 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 No. 0-26242
FORT THOMAS FINANCIAL CORPORATION
(Exact name of registrant as specified in its charter)
Ohio 61-1278396
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
25 North Fort Thomas Avenue
Fort Thomas, Kentucky 41075
(Address of principal executive officer) (Zip Code)
(Registrant's telephone number, including area code) (606)441-3302
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 last practicable date. As of February 1,
1999, there were issued and outstanding 1,474,321 shares of the Registrant's
Common Stock, par value $.01 per share.
FORT THOMAS FINANCIAL CORPORATION AND SUBSIDIARY
TABLE OF CONTENTS
Part I. Financial Information Page
Item 1. Consolidated Financial Statements
Consolidated Statements of
Financial Condition(As of December 31, 1998
(unaudited) and September 30, 1998) 3
Consolidated Statements of Income for the three
months ended December 31, 1998 (unaudited)
and December 31, 1997 (unaudited) 4
Consolidated Statements of Cash Flow for the three
months ended December 31, 1998 (unaudited)
and December 31, 1997 (unaudited) 5
Notes to the Unaudited Consolidated Financial Statements 6
Item 2. Management's Discussion and Analysis of Financial Condition
And Results of Operations 7
Item 3. Quantitative and Qualitative Disclosures About Market Risk 11
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
Signatures 13
FORT THOMAS FINANCIAL CORPORATION AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
<TABLE>
<CAPTION>
December 31, September 30,
1998 1998
------------ -------------
(In Thousands Except
Share Amounts)
Assets
<S> <C> <C>
Cash and Due from Banks $ 4,935 $ 3,135
Investment Securities - Held to Maturity - at Amortized Cost 3,000 3,001
- Available for Sale - at Market 747 753
Loans Receivable, Net 92,809 92,795
Office Properties and Equipment - at Depreciated Cost 518 493
Federal Home Loan Bank Stock (FHLB) - at Cost 886 871
Cash Surrender Value of Life Insurance 1,172 1,159
Accrued Interest Receivable 847 856
Prepaid and Other Assets 76 112
Deferred Federal Income Tax Asset 440 436
------------------------
Total Assets $105,430 $103,611
========================
Liabilities and Stockholders' Equity
Deposits $ 78,630 $ 76,851
Borrowed Funds 12,469 12,526
Advances from Borrowers for Taxes and Insurance 6 270
Deferred Compensation 563 552
Accrued Interest Payable 78 72
Accrued Federal Income Tax 145 6
Other Liabilities 554 621
------------------------
Total Liabilities 92,445 90,898
========================
Stockholders' Equity
Common Stock, $.01 Par value; 4,000,000 Shares Authorized;
1,573,775 Shares Issued and 1,474,321 Shares Outstanding 16 16
Additional Paid-In Capital 7,607 7,594
Shares Acquired by Employee Stock Ownership Plan (ESOP) (472) (498)
MRP Trust (520) (550)
Retained Earnings, Substantially Restricted 7,734 7,531
Treasury Stock (99,454 Shares at Cost) (1,380) (1,380)
-------------------------
Total Stockholders' Equity 12,985 12,713
------------------------
Total Liabilities and Stockholders' Equity $105,430 $103,611
========================
</TABLE>
FORT THOMAS FINANCIAL CORPORATION AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME
<TABLE>
<CAPTION>
Three Months Ended
December 31,
--------------------
1998 1997
--------------------
(In Thousands Except
for Share Amounts)
<S> <C> <C>
Interest Income
Interest on Loans $2,028 $1,978
Interest on Investment Securities 53 48
Interest on Mortgage-Backed Securities - 1
Other Interest and Dividends 83 49
-------------------
Total Interest Income 2,164 2,076
-------------------
Interest Expense
Deposits 1,028 970
Long-Term Borrowed Funds 166 138
-------------------
Total Interest Expense 1,194 1,108
-------------------
Net Interest Income 970 968
Provision for Loan Losses 12 12
-------------------
Net Interest Income After Provision for Loan
Losses 958 956
-------------------
Other Income
Fees and Charges 27 39
Other 33 36
-------------------
Total Other Income 60 75
-------------------
General and Administrative
Salaries and Employee Benefits 311 280
Franchise and Other Taxes 36 36
Federal Insurance Premium 11 11
Expenses of Premises and Fixed Assets 49 44
Data Processing and Related Contract Services 34 33
Legal, Audit, and Supervisory Exam 29 53
Other Operating Expense 93 99
-------------------
Total General and Administrative 563 556
-------------------
Income Before Income Tax 455 475
Federal Income Tax Expense 160 169
-------------------
Net Income $ 295 $ 306
===================
Comprehensive Income $ 295 $ 306
===================
Earnings Per Share
Basic EPS $ 0.21 $ 0.22
===================
Fully Diluted EPS $ 0.20 $ 0.21
===================
</TABLE>
FORT THOMAS FINANCIAL CORPORATION AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
Three Months Ended
December 31,
--------------------
1998 1997
--------------------
(In Thousands Except
Share Amounts)
<S> <C> <C>
Cash Flows from Operating Activities
Net Income $ 295 $ 306
Reconciliation of Net Income with Cash Flows
from Operations:
Revision for Loan Losses 12 12
Depreciation 18 17
Deferred Income Taxes (4) (5)
Amortization (62) (63)
FHLB Stock Dividends (15) (14)
ESOP and Stock Compensation 42 48
Changes In:
Accrued Interest Receivable 9 4
Prepaid and Other Assets 36 19
Cash Surrender Value of Life Insurance (12) (11)
Deferred Compensation 11 18
Accrued Interest Payable 6 11
Accrued Income Tax 139 176
Other Liabilities (67) (157)
---------------------
Net Cash Provided by Operating Activities 408 361
---------------------
Cash Flows from Investing Activities
Purchase of Investment Securities (500) -
Maturity of Investment Securities 500 791
Loan Originations and Repayments, Net 3 (2,636)
Principal Received on Debt Security 6 -
Expenses paid for REO - (14)
Proceeds from Sale of REO 35 83
Purchase of Office Properties and Equipment (44) (4)
---------------------
Net Cash Used in Investing Activities - (1,780)
---------------------
Cash Flows from Financing Activities
Net (Decrease) Increase in Deposits 1,779 (272)
Dividends Paid (92) (92)
ESOP Shares Released 26 26
Common Stock Shares Purchased for Treasury - (275)
Advance from Borrowers for Taxes and Insurance (264) (204)
Repayments of Borrowings (4,057) (2,004)
Proceeds of Borrowings 4,000 4,450
---------------------
Net Cash Provided by Financing Activities 1,392 1,629
---------------------
Changes in Cash and Cash Equivalents 1,800 210
Cash and Cash Equivalents, Beginning of Period 3,135 1,185
---------------------
Cash and Cash Equivalents, End of Period $4,935 $2,395
=====================
</TABLE>
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 by 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 months ended December 31, 1998 are
not necessarily indicative of the results to be expected for the year ending
September 30, 1999. 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, 1998 contained
in the Corporation's 1998 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 December 31,
-------------------------------
1998 1997
-------------------------------
<S> <C> <C>
Basic Weighted - 1,424,531 1,406,252
Average Shares
Diluted Weighted - 1,505,439 1,483,690
Average Shares
</TABLE>
Note 3 - Impact of Recent Accounting Standards
-------------------------------------
In June 1997, the FASB issued SFAS No. 130, "Reporting Comprehensive
Income," which establishes standards for reporting and displaying
comprehensive income and its components (revenues, expenses, gains and
losses) in a full set of general-purpose financial statements. SFAS No. 130
requires that all items that are required to be recognized under accounting
standards as components of comprehensive income be reported in a financial
statement that is displayed with the same prominence as other financial
statements and requires that an enterprise (a) classify items of other
comprehensive income by their nature in a financial statement and (b)
display the accumulated balance of other comprehensive income separately
from retained earnings and additional paid-in capital in the equity section
of the statement of financial position. Under existing accounting
standards, other comprehensive income shall be classified separately into
foreign currency items, minimum pension liability adjustments and unrealized
gains and losses on certain investments in debt and equity securities. The
provisions of SFAS No. 130 became effective for fiscal years beginning after
December 15, 1997. The adoption of SFAS No. 130 has not had a material
impact on the disclosure requirements of the Corporation.
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Financial Condition
At December 31, 1998, the Corporation's total assets amounted to $105.4
million as compared to $103.6 million at September 30, 1998. The $1.8
million or 1.7% increase was primarily due to an increase in cash and due
from banks. Such increase was funded primarily by an increase in deposits.
Stockholders' equity amounted to $12.9 million or 12.2% of total assets at
December 31, 1998 compared to $12.7 million or 12.3% at September 30, 1998.
The increase in stockholders' equity was primarily due to continued
profitable operations partially offset by cash dividends.
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 payments are brought
current and, in the opinion of management, collection of the remaining
balance can be reasonably expected.
The following is a breakdown of loans receivable as of the periods
indicated:
<TABLE>
<CAPTION>
December 31, 1998 September 30, 1998
----------------- ------------------
Amount Percent Amount Percent
----------------------------------------
<S> <C> <C> <C> <C>
Real Estate Loans
One-to-Four Family Residential $76,064 78.96% $78,969 81.68%
Multi-Family and Non-Residential 10,554 10.96 11,070 11.45
Land and Construction:
Residential 6,985 7.25 5,531 5.72
Commercial 1,414 1.47 - -
--------------------------------------
Total Real Estate Loans 95,017 98.64 95,570 98.85
--------------------------------------
Consumer Loans
Savings Accounts 696 0.72 665 0.69
Other Consumer Loans 619 0.64 449 0.46
--------------------------------------
Total Consumer Loans 1,315 1.36 1,114 1.15
--------------------------------------
Total Loans 96,332 100.00% 96,684 100.00%
======================================
Less
Loans in Process 2,227 2,572
Deferred Loan Fees 597 613
Allowance for Loan Losses 699 704
------- -------
Loans Receivable, Net $92,809 $92,795
======= =======
</TABLE>
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 December 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 $2,716 $2,843 $5,559 3.57% 3.74% 7.31%
Multi-family and
nonresidential 341 343 684 3.23% 3.25% 6.48%
Construction and land 36 273 309 0.43% 3.25% 3.68%
Consumer 31 6 37 2.36% 0.46% 2.81%
------ ------ ------
Total delinquent loans $3,124 $3,465 $6,589
====== ====== ======
</TABLE>
The following table sets forth the amounts and categories of the Bank's non-
performing assets at the dates indicated.
<TABLE>
<CAPTION>
December 31, September 30,
---------------- -------------
1998 1997 1998
---------------------------------
(Dollars in Thousands)
<S> <C> <C> <C>
Non-accruing loans:
One-to-four family residential (1) $2,843 $1,470 $2,905
Multi-family and non-residential
real estate 343 436 343
Construction and land 273 111 335
Consumer 6 - -
Accruing consumer loans greater
than 90 days delinquent: - 18 -
------ ------ ------
Total non-performing loans 3,465 2,035 3,583
Real estate acquired through
foreclosure - - -
------ ------ ------
Total non-performing assets $3,465 $2,035 $3,583
====== ====== ======
Total non-performing assets as a
percentage of total loans 3.60% 2.43% 3.86%
====== ===== ====
Total non-performing assets as a
percentage of total assets 3.29% 2.04% 3.46%
====== ===== =====
<F1> Includes second mortgage loans.
</TABLE>
The $3.5 million of nonaccruing loans at December 31, 1998 consisted of 63
loans with an average balance of approximately $55,000. Interest that would
have been earned on these loans, if they had been accounted for on an
accruing basis during the quarter ended December 31, 1998 would have been
approximately $69,000. Substantially, all of the loans are extended to
separate borrowers.
The increase between December 31, 1997 and December 31, 1998, is primarily
due to the nonaccrual status of 14 loans which have been extended to three
separate borrowers. Such loans, aggregating $902,000 at December 31, 1998,
are secured by non-owner occupied single-family homes. The $902,000
consists of four loans to one borrower aggregating $411,000, seven loans to
a second borrower aggregating $258,000 and three loans to a third borrower
totalling $211,000. The borrower with four loans aggregating $411,000 is in
the process of selling all single-family properties securing such loans. In
addition, the Bank is presently working with the other two borrowers in an
attempt to favorably resolve the delinquent status of such loans.
Presently, the Bank does not believe that it will incur any material losses
on such loans.
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 uncollectable
and of such little value that continuance as an asset of the institution is
not warranted. At December 31, 1998, the Bank had $4.3 million of loans
that were classified as substandard, no loans classified as doubtful and
$15,000 of loans classified as loss. The difference between the $4.3
million of assets classified for regulatory purposes and the delinquent
loans of $3.5 million was approximately $800,000. This amount represents
loans that were required to be classified for regulatory purposes due to
certain quantitative factors regarding collateral, delinquency periods, and
loan terms.
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 collectability
of the loan portfolio. Provisions for loan losses that are charged against
income increase the allowance.
Although management uses the best information available to make
determinations with respect to the provisions of 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 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.
The following table summarizes the activity in the allowance for loan losses
and other selected statistics for the periods presented.
<TABLE>
<CAPTION>
Three Months Ended Year Ended
December 31, September 30,
------------------ -------------
1998 1997 1998
-----------------------------------
(Dollars in Thousands)
<S> <C> <C> <C>
Average Loans Receivable, Net $92,732 $89,835 $91,487
================================
Allowance for Loan Losses
Balance at Beginning of Period $ 704 $ 476 $ 476
Net (Charge-Offs) (17) (15) (57)
Provision for Loan Losses 12 12 285
--------------------------------
Balance at End of Period $ 699 $ 473 $ 704
================================
Net Loans (Charged-Off) Recovered to Average
Loans -0.02% -0.02% -0.06%
================================
Allowance for Loan Losses to Total Loans 0.73% 0.51% 0.73%
================================
Allowance for Loan Losses to Total Non-Performing
Loans 20.17% 24.67% 19.65%
================================
Net Loans (Charged-Off) Recovered to Allowance for
Loan Losses -2.43% -3.17% -8.10%
================================
</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 dates indicated.
<TABLE>
<CAPTION>
December 31, 1998
-------------------------------------
Percent of Loans
In Each Category
Amount To Total Loans
-------------------------------------
(Dollars in Thousands)
<S> <C> <C>
One-to-Four Family Residential $502 78.96%
Multi-Family Residential 101 10.96%
Land and Construction 68 8.72%
Consumer Loans 28 1.37%
-----------------------------
Total $699 100.00%
=============================
</TABLE>
Results of Operations for the Three Months Ended December 31, 1998 and 1997
General. The Corporation reported net income of $295,000 during the
three months ended December 31, 1998 compared to $306,000 during the three
months ended December 31, 1997. The decrease in net income during the three
months ended December 31, 1998 compared to the same period in 1997 was due
primarily to a decrease in revenues from fees, charges and other income of
$15,000, and increases in non-interest expense of $7,000 which were
partially offset by a decrease in federal income tax expense.
Interest Income. Interest income increased $88,000 or 4.2% to $2.2
million for the three months ended December 31, 1998 compared to the same
period in 1997. The increase during the 1998 period was primarily due to an
increase in the average outstanding balance of the Corporation's loan
portfolio. Such increase was primarily due to increased loan demand.
Yields on interest-earning assets remained relatively constant.
Interest Expense. Interest expense increased $86,000 or 7.8% to $1.2
million for the three months ended December 31, 1998, compared to the same
period in 1997. Such increase was primarily due to an increase in the
average outstanding balance of the Corporation's time deposits. Costs of
funds remained relatively constant.
Net Interest Income. Net interest income amounted to $970,000 for the
three months ended December 31, 1998, an increase of $2,000 over the
comparable period in 1997. The interest rate spread amounted to 3.13% for
the three months ended December 31, 1998 compared to 3.16% for the same
period in 1997. The ratio of average interest-earning assets to average
interest-bearing liabilities was 114.2% and 118.6% for the same respective
periods.
Provision for Losses on Loans. The provision for losses on loans
amounted to $12,000 for both the three months ended December 31, 1998 and
1997.
Other Income. Other income decreased $15,000 or 20.0% during the
three months ended December 31, 1998, compared to the same period in 1997
due primarily to a decrease in fees and charges relating to loans.
Non-Interest Expenses. Non-interest expenses for three months ended
December 31, 1998 increased $7,000 or 1.3% over the same period in 1997 to
$563,000. This increase was primarily due to an increase in salaries and
employee benefits of $31,000 that was partially offset by a decrease in
legal, audit, and supervisory exam 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. While 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 steady deposit balance. In addition,
the Bank invests excess funds in overnight deposits and other short-term
interest-earning assets that provide liquidity to meet lending requirements.
The Bank has generally 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 December 31, 1998, the Bank had $12.5 million of
outstanding advances from the FHLB of Cincinnati. The interest notes on
these advances range from 4.82% to 5.55%. Maturities on these advances
range from March 26, 2008 to October 2, 2008.
As of December 31, 1998, the Bank's regulatory capital was well in excess of
all applicable regulatory requirements. At December 31, 1998, the Bank's
tangible, core and risk-based capital ratios amounted to 18.6%, 11.3% and
11.3%, respectively, compared to regulatory requirements of 8.0%, 1.5% and
3.0%, respectively.
Year 2000. The Corporation 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.
Forward-Looking Statements
This Form 10-Q contains certain forward-looking statements and
information relating to the Corporation that is based on the beliefs of
management as well as assumptions made by and information currently
available to management. In addition, in those and other portions of this
document, the words "anticipate", "believe", "estimate", "except", "intend",
"should" and similar expressions, or the negative thereof, as they relate to
the Corporation or the Corporation's management, are intended to identify
forward-looking statements. Such statements reflect the current views of
the Corporation with respect to future looking events and are subject to
certain risks, uncertainties and assumptions. Should one or more of these
risks or uncertainties materialize or should underlying assumptions prove
incorrect, actual results may vary materially from those described herein as
anticipated, believed, estimated, expected or intended. The Corporation
does not intend to update these forward-looking statements.
QUANTITATIVE AND QUALITATIVE DISCLOSURES
ABOUT MARKET RISK
For a discussion of the Corporation's asset and liability management
policies as well as the potential impact of interest rate changes upon the
market value of the Bank's portfolio equity, see "Management's Discussion
and Analysis of Financial Condition and Results of Operations" in the
Corporation's 1998 Annual Report to the Stockholders. There has been no
material change in the Corporation's asset and liability position or the
market value of the Bank's portfolio equity since September 30, 1998.
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.
Item 5. Other Information
-----------------
None.
Item 6. Exhibits and Reports on Form 8-K
--------------------------------
None
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: By: /s/ Larry N. Hatfield
--------------- ----------------------------
Larry N. Hatfield
President and Chief Executive Officer
Date: By: /s/ J. Michael Lonnemann
--------------- ---------------------------
J. Michael Lonnemann
Vice President, Secretary and Principal
Financial Officer
<TABLE> <S> <C>
<ARTICLE> 9
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> SEP-30-1999
<PERIOD-END> DEC-31-1998
<CASH> 624
<INT-BEARING-DEPOSITS> 4,311
<FED-FUNDS-SOLD> 0
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 0
<INVESTMENTS-CARRYING> 3,000
<INVESTMENTS-MARKET> 747
<LOANS> 93,508
<ALLOWANCE> 699
<TOTAL-ASSETS> 105,430
<DEPOSITS> 78,630
<SHORT-TERM> 4,000
<LIABILITIES-OTHER> 1,346
<LONG-TERM> 8,469
0
0
<COMMON> 16
<OTHER-SE> 12,969
<TOTAL-LIABILITIES-AND-EQUITY> 105,430
<INTEREST-LOAN> 2,028
<INTEREST-INVEST> 53
<INTEREST-OTHER> 83
<INTEREST-TOTAL> 2,164
<INTEREST-DEPOSIT> 1,028
<INTEREST-EXPENSE> 166
<INTEREST-INCOME-NET> 970
<LOAN-LOSSES> 12
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 563
<INCOME-PRETAX> 455
<INCOME-PRE-EXTRAORDINARY> 455
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 455
<EPS-PRIMARY> .21
<EPS-DILUTED> .20
<YIELD-ACTUAL> 3.79
<LOANS-NON> 3,465
<LOANS-PAST> 0
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 704
<CHARGE-OFFS> 18
<RECOVERIES> 1
<ALLOWANCE-CLOSE> 699
<ALLOWANCE-DOMESTIC> 699
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
