SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OF 15 (d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 1996
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OF 15 (d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
Commission File Number 0-26560
HARDIN BANCORP, INC.
(Exact name of Registrant as specified in its Charter)
Delaware 43-1719104
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
2nd and Elm Street, Hardin, Missouri 64035
(Address of principal executive offices) (Zip code)
Registrant's telephone number, including area code:(816) 398-4312
Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by section 13 of 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
common stock as of the latest practicable date.
Common stock, .01 par value 1,012,180
Class Outstanding at
June 30, 1996
<PAGE>
<PAGE>
HARDIN BANCORP, INC.
CONTENTS
PART I - FINANCIAL INFORMATION
Item 1: Financial Statements Page
Consolidated Balance Sheets 1
Consolidated Statements of Earnings 2
Consolidated Statements of Stockholders' Equity 3
Consolidated Statements of Cash Flows 4-5
Notes to Consolidated Financial Statements 6-7
Item 2: Management's Discussion and Analysis of
Financial Condition and Results of
Operations 8-11
PART II - OTHER INFORMATION 12
Signatures 13
PAGE
<PAGE>
Hardin Bancorp, Inc. and Subsidiaries
Consolidated Balance Sheets
June 30, 1996, and March 31, 1996
<TABLE>
<CAPTION>
(Unaudited)
June 30, March 31,
Assets 1996 1996
----------- ---------
<S> <C> <C>
Cash $ 277,856 $ 253,557
Interest bearing deposits 2,412,632 5,430,396
Certificates of deposits - -
Investment securities - available for sale 12,110,020 6,362,850
Mortgage backed securities:
Held to maturity 15,231,170 16,298,987
Available for sale 7,554,609 7,906,862
Loans receivable, net 47,175,133 45,031,460
Accrued interest receivable:
Investment securities 188,051 116,562
Mortgage backed securities 176,185 188,532
Loans receivable 311,157 296,775
Premises and equipment 533,482 510,218
Stock in Federal Home Loan Bank (FHLB) of
Des Moines, at cost 742,000 742,000
Prepaid expenses and other assets 237,301 248,623
Total assets $ 86,949,596 $ 83,386,822
Liabilities and Stockholder's Equity
Liabilities
Deposits $ 66,090,856 $66,605,247
Advances from borrowers for
taxes and insurance 343,464 223,752
Advances on FHLB line of credit 5,000,000 -
Accrued interest payable 40,480 30,385
Income taxes payable:
Current 171,393 56,575
Deferred (60,325) 48,000
Accrued expenses and other liabilities 431,248 387,922
---------- ----------
Total liabilities 72,017,116 67,351,881
---------- ----------
Stockholders' equity
Serial preferred stock, $.01 par value;
500,000 shares authorized, none issued
or outstanding - -
Common stock, $.01 par value: 3,500,000 shares
authorized, 1,058,000 shares issued, and
1,012,180 and 1,058,000 outstanding at
June 30, 1996 and March 31, 1996
respectively 10,580 10,580
Additional paid-in capital 10,055,448 10,055,448
Retained earnings 6,979,995 6,885,230
Unrealized gain or (loss) on available for
sale securities, net (338,329) (154,597)
Unearned employee stock ownership plan (761,720) (761,720)
Deferred recognition and retention plan (476,979) -
Treasury stock (45,820 shares, at cost) (536,515) -
---------- ----------
Total stockholders' equity 14,932,480 16,034,941
---------- ----------
Total liabilities and stockholders' equity $ 86,949,596 $ 83,386,822
---------- ----------
---------- ----------
<FN>
See accompanying notes to consolidated financial statements.
</TABLE>
<PAGE>
<PAGE>
Hardin Bancorp, Inc. and Subsidiaries
Consolidated Statements of Earnings
for the three months ended
June 30, 1996 and 1995
(Unaudited)
<TABLE>
<CAPTION>
1996 1995
----------- -----------
<S> <C> <C>
Interest income
Loans receivable $ 947,561 $ 704,238
Mortgage backed securities 367,865 403,950
Investment securities 197,029 83,400
Other 60,065 75,485
----------- -----------
Total interest income 1,572,520 1,267,073
----------- -----------
Interest expense
Deposits 829,107 851,958
FHLB advances 68,288 8,588
----------- -----------
Total interest expense 897,395 860,546
----------- -----------
Net interest income 675,125 406,527
Provision for loan loss 7,500 -
----------- -----------
Net interest income after provision
for loan losses 667,625 406,527
Non-interest income
Service charges 20,565 26,913
Loan servicing fees 9,613 -
Gain/(loss) on sale of investments and
mortgage backed securities - (2,886)
Other income 62,327 25,781
----------- -----------
Total non-interest income 92,505 49,808
----------- -----------
Non-interest expense
Compensation and benefits 231,026 164,952
Occupancy and equipment 25,886 22,287
Federal insurance premiums 37,771 38,660
Data processing 22,332 22,150
Other 133,021 80,408
----------- -----------
Total non-interest expense 450,036 328,457
----------- -----------
Earnings before income taxes 310,094 127,878
Income tax expense 114,818 43,415
----------- -----------
Net earnings $ 195,276 $ 84,463
----------- -----------
----------- -----------
Net earnings per common share:
Primary and fully diluted $ 0.20 $ N/A
Weighted average number of
shares outstanding:
Primary and fully diluted 972,301 N/A
<FN>
N/A not applicable because no stock was outstanding.
See accompanying notes to consolidated financial statements.
</TABLE>
PAGE
<PAGE>
Hardin Bancorp, Inc. and Subsidiaries
Consolidated Statements of Stockholders' Equity
Year ended March 31, 1996 and
Three months ended June 30, 1996
(Unaudited)
<TABLE>
<CAPTION>
Unrealized Unearned
Additional Gain or (Loss) Employee Total
Common Paid-in Retained on Stock Deferred Treasury Stockholders'
Stock Capital Earnings Securities,net Ownership Plan RRP Stock Equity
------- ---------- ---------- --------- --------- --------- ---------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Balance at March 31, 1996 $10,580 10,055,448 6,885,230 (154,597) (761,720) - - 16,034,941
Net earnings - - 195,276 - - - - 195,276
Change in unrealized loss on
available-for-sale securities,
net of tax - - - (183,732) - - - (183,732)
Repurchase of common stock - - - - - - (1,034,665) (1,034,665)
Adoption of RRP - - - - - (498,150) 498,150 -
Amortization of RRP - - - - - 21,171 - 21,171
Dividend declared ($.10 per share) - - (100,511) - - - - (100,511)
------- ---------- ---------- --------- --------- --------- ---------- -----------
Balance at June 30, 1996 $10,580 10,055,448 6,979,995 (338,329) (761,720) (476,979) (536,515) 14,932,480
------- ---------- ---------- --------- --------- --------- ---------- -----------
------- ---------- ---------- --------- --------- --------- ---------- -----------
<FN>
See accompanying notes to consolidated financial statements.
</TABLE>
PAGE
<PAGE>
Hardin Bancorp, Inc. and Subsidiaries
Consolidated Statements of Cash Flows
Three Months Ended June 30, 1996 and 1995
(Unaudited)
<TABLE>
<CAPTION>
1996 1995
----------- ------------
<S> <C> <C>
Operating Activities:
Net Earnings $ 195,276 $ 84,463
Adjustments to reconcile net earnings
to net cash provided by operating
activities:
Provision for losses on loans 7,500 -
Depreciation 12,263 10,654
Premium accretion and amortization
of discounts and deferred loan
fees, net 23,863 22,828
Net gain (Loss) on sale of loans and
investment securities available for sale - 2,886
Gain on sale of premises and equipment - (4,877)
Amortization of deferred Recognition
and Retention Plan (RRP) 21,171 -
Changes in assets and liabilities:
Interest receivable (73,524) 34,199
Other assets 11,322 (75,929)
Accrued interest payable 10,095 (2,214)
Accrued expense and other liabilities 48,615 (40,305)
Income taxes payable 114,818 43,316
----------- ------------
Net cash provided by operating activities 371,399 75,021
----------- ------------
Investing Activities:
Net increase in loans receivable (1,753,741) (320,775)
Proceeds from maturities of certificate
of deposits in other institutions - 100,000
Purchase of loans receivable (396,238) (1,761,669)
Principal payments on mortgage backed
securities:
Available for sale 305,910 -
Held to maturity 1,049,407 1,184,877
Purchase of investments securities
Available for sale (7,499,531) (1,267,655)
Proceeds from maturities of investment
securities:
Available for sale 1,500,000 -
Held to maturity - -
Proceeds from sales of investment
securities available for sale - 2,993,438
Proceeds from sale of real estate owned - -
Purchase of office premises and equipment (35,527) (2,776)
Proceeds from sale of office premises and
equipment - 13,500
----------- ------------
Net cash used in investing activities (6,829,720) 938,940
----------- ------------
</TABLE>
<PAGE>
Hardin Bancorp, Inc. and Subsidiaries
Consolidated Statements of Cash Flows, Continued
Three Months Ended June 30, 1996 and 1995
(Unaudited)
<TABLE>
<CAPTION>
1996 1995
---------- ----------
<S> <C> <C>
Financing Activities:
Net (decrease) increase in savings
deposits (514,391) 369,833
Proceeds from FHLB advances 5,000,000 -
Repayments of FHLB advances - (1,500,000)
Net increase in advances from borrowers
for taxes and insurance 119,712 96,799
Payment of dividends (105,800) -
Purchase of treasury stock (1,034,665) -
---------- ----------
Net cash provided by financing activities 3,464,856 (1,033,368)
---------- ----------
Increase in cash (2,993,465) (19,407)
Cash at beginning of period 5,683,953 4,442,116
---------- ----------
Cash at end of period $ 2,690,488 $ 4,422,709
---------- ----------
---------- ----------
Supplemental disclosure of cash flow
information:
Cash paid for:
Interest $ 887,300 $ 862,760
Income taxes, net of refunds $ - $ 99
Noncash investing and financing:
Allocation of treasury stock to RRP $ 498,150 $ -
Dividends declared and payable $ 100,511 $ -
<FN>
See accompanying notes to consolidated financial statements.
</TABLE>
PAGE
<PAGE>
HARDIN BANCORP, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(Unaudited)
(1) Hardin Bancorp, Inc.
Hardin Bancorp, Inc. (the "Holding company") was incorporated
under the laws of the State of Delaware for the purpose of
becoming the savings and loan holding company of Hardin
Federal Savings Bank, (the "Bank") in connection with the
Bank's conversion from a federally chartered mutual savings
bank to a federally chartered stock savings bank, pursuant to
its Plan of Conversion. On August 21, 1995, the Holding
Company commenced a Subscription and Community Offering of its
shares in connection with the conversion of the Bank (the
"Offering"). The Offering was consummated and the Holding
Company acquired the Bank on September 28, 1995. It should be
noted that the Holding Company had no assets prior to the
conversion and acquisition on September 28, 1995.
The accompanying consolidated financial statements as of and
for the three months ended June 30, 1996 include the
accounts of the Holding Company and the Bank.
(2) Basis of Preparation
The accompanying unaudited consolidated financial statements
were prepared in accordance with instructions for Form 10-QSB.
To the extent that information and footnotes required
by generally accepted accounting principles for complete
financial statements are contained in the audited financial
statements included in the Holding Company's Annual Report
for the year ended March 31, 1996, such information and
footnotes have not been duplicated herein. In the opinion
of management, all adjustments, consisting only of normal
recurring accruals, which are necessary for the fair
presentation of the interim financial statements have been
included. The statements of earnings for the three month
period ended June 30, 1996 are not necessarily indicative of
the results which may be expected for the entire year.
(3) Earnings Per Share
On September 28, 1995, 1,058,000 shares of the Holding
Company's stock were issued, including 84,640 shares issued
to the ESOP. Earnings per share amounts for the three month
period ended June 30, 1996 are based upon an average of
972,301 shares. The shares issued to the Employee Stock
Ownership Plan (ESOP) are not included in this computation
until they are allocated to plan participants.
(4) Stockholders' Equity and Stock Conversion
The Bank converted from a federally chartered mutual savings
bank to a federally chartered stock savings bank pursuant to
its Plan of Conversion which was approved by the Bank's
members on September 21, 1995. The conversion was effective
on September 28, 1995 and resulted in the issuance of
1,058,000 shares of common stock (par value $0.01) at $10.00
per share for a gross sales price of $10,580,000. Costs
related to conversion (primarily underwriters' commissions,
printing, and professional fees) aggregated $532,600 and
were deducted to arrive at the net proceeds of $10,047,400.
The Holding Company established an employee stock ownership
trust which purchased 84,640 shares of common stock of the
Holding Company at the issuance price of $10.00 per share
with funds borrowed from the holding company.
(5) Employee Stock Ownership Plan (ESOP)
All employees meeting age and service requirements are
eligible to participate in an ESOP established on September
28, 1995. Contributions made by the Bank to the ESOP are
allocated to participants by a formula based on compensation.
Participant benefits become 100 percent vested after five
years. The ESOP purchased 84,640 shares in the Bank's
conversion. ESOP expense for the three month period ended
June 30, 1996 was $29,742.
(6) Recognition and Retention Plan (RRP)
On April 16, 1996, the shareholders approved adoption of a RRP
whereby 42,320 shares of common stock were authorized to be
purchased by the plan. At June 30, 1996, 35,972 shares have been
awarded to plan participants. The cost of these shares will be
amortized as compensation expense over a
five year vesting period.
<PAGE>
<PAGE>
HARDIN BANCORP, INC. AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
GENERAL
Hardin Bancorp, Inc. (the "Company") was incorporated under the
laws of the state of Delaware to become a savings bank holding
company with Hardin Federal Savings Bank (the "Bank") of Hardin,
Missouri, as its subsidiary. The Holding Company was incorporated
at the direction of the Board of Directors of the Bank, and on
September 28, 1995, acquired all of the capital stock of the Bank
upon its conversion from mutual to stock form (the "conversion").
Prior to the conversion, the holding company did not engage in any
material operations and at June 30, 1996, had no significant assets
other than the investment in the capital stock of the Bank, cash,
investment securities, and Hardin Bancorp loan to the employee
stock ownership plan (ESOP), representing a portion of the net
proceeds from the conversion retained at the holding company level.
Hardin Federal Savings Bank was originally founded in 1888 as a
Missouri chartered savings and loan association located in Hardin,
Missouri. On March 21, 1995, the Bank members voted to convert the
Bank to a Federal mutual charter. The Bank conducts its business
through its main office in Hardin, Ray County, and two full service
branch offices located in Richmond, Ray County, and Excelsior
Springs, Clay County, Missouri. Deposits are insured by the
Federal Deposit Insurance Corporation (FDIC) to the maximum
allowable.
The Bank is principally engaged in the business of attracting
retail savings deposits from the general public and investing those
funds in first mortgage loans on owner occupied, single-family
residential loans, mortgage backed securities, U.S. Government
securities, and insured interest bearing deposits. The Bank also
originated consumer loans, including loans for the purchase of
automobiles and home improvement loans.
The most significant outside factors influencing the operations of
the Bank and other financial institutions include general economic
conditions, competition in the local market place and the related
monetary and fiscal policies of agencies that regulate financial
institutions. More specifically, the cost of funds primarily
consisting of insured deposits is influenced by interest rates on
competing investments and general market rates of interest, while
lending activities are influenced by the demand for real estate
financing and other types of loans, which in turn is affected by
the interest rates at which such loans may be offered and other
factors affecting loan demand and funds availability.
The deposits of the Bank are presently insured by the Savings
Association Insurance Fund (the "SAIF"), which together with the
Bank Insurance Fund (the "BIF"), are the two insurance funds
administered by the FDIC. On August 8, 1995, the FDIC revised the
premium schedule for BIF-insured banks to provide a range of .04%
to .31% of deposits (as compared to the former range of .23% to
.31% of deposits for both BIF and SAIF insured institutions) in
anticipation of the BIF achieving its statutory reserve ratio. The
lower premiums for BIF members became effective in the third
quarter of 1995 after FDIC verification that the BIF achieved the
statutory reserve ratio on June 30, 1995. Assessments for BIF
members were subsequently reduced to as low as $2,000. As a
result, BIF members generally will pay lower premiums than the SAIF
members. It is anticipated that the SAIF will not be adequately
recapitalized until 2002, absent a substantial increase in premium
rates or the imposition of special assessments or other significant
developments, such as a merger of the SAIF and BIF. As a result of
the disparity, SAIF members could be placed at a significant
competitive disadvantage to BIF members due to higher costs for
deposit insurance. Proposed legislation under consideration by
Congress provides for a one-time assessment to be imposed on all
deposits assessed at the SAIF rates, as of March 31, 1995, in order
to recapitalize the SAIF and eliminate the disparity. The BIF and
the SAIF would be merged effective January 1, 1998. The special
assessment rate is anticipated to be .85% to .90%. Based upon the
Bank's level of SAIF deposits at March 31, 1995, and assuming a
special assessment of .90%, the Bank's assessment would be
approximately $610,000 on a pre-tax basis. If the legislation is
enacted it is anticipated the assessment would be payable in 1996.
Accordingly, this special assessment would significantly increase
non-interest expense and adversely affect the Bank's results of
operations. Conversely, depending upon the Bank's capital level
and supervisory rating, and assuming, although there can be no
assurance, that the insurance premium levels for BIF and SAIF
members are again equalized, deposit insurance premiums could
decrease significantly to as low as .04% for future periods.
The Congress is also considering requiring all federal thrift
institutions, such as the Bank, to either convert to a national
bank or a state chartered depository institution by January 1,
1998. In addition, the Company would no longer be regulated as a
thrift holding company, but rather as a bank holding company. The
Office of Thrift Supervision (OTS) also would be abolished and its
functions transferred among the federal banking regulators. Other
proposed legislation before Congress might require the recapture in
taxable income of the Bank's bad debt reserve, unless the Bank met
certain conditions. The Bank's bad debt reserve was approximately
$1,600,000 at June 30, 1996.
Certain aspects of the legislation remain to be resolved and
therefore no assurance can be given as to whether or in what form
the legislation will be enacted or its effect on the Company and
the Bank.
Legislation recently passed by Congress contains a provision that
would repeal the tax bad debt reserve currently available to
Thrifts including the percentage of taxable income method for tax
years beginning after December 31, 1995. If signed by the
President, the Bank would have to change to the experience method
of computing it's bad debt reserve. The legislation would require
a Thrift to recapture the portion of it's bad debt reserve that
exceeds the base year reserve, defined as the tax reserve as of the
last taxable year beginning before 1988.
FINANCIAL CONDITION
Consolidated assets of Hardin Bancorp, Inc. were $86,949,596 as of
June 30, 1996, an increase of $3,562,774 as compared to March 31,
1996. At June 30, 1996 total stockholder's equity was $14,932,480,
a decrease of $1,102,461 when compared to stockholder's equity at
March 31, 1996. The increase in assets resulted from the Bank
obtaining a Federal Home Loan Bank advance in the amount of
$5,000,000 to fund the purchase of a U.S. Government agency
security. The decrease in stockholder's equity was a result of
42,320 shares of Hardin Bancorp, Inc. common stock acquired by the
Hardin Bancorp, Inc. Recognition and Retention Plan for $498,150,
and 45,820 shares of common stock acquired as Treasury Stock for
$536,515. Additional net unrealized loss on available for sale
securities in the amount of $183,732 and quarterly common stock
cash dividends of $100,510, off-set by quarterly earnings in the
amount of $195,276 also impacted the change in stockholder's
equity.
Cash, interest bearing deposits and investment securities increased
to $14,800,508 at June 30, 1996, from $12,046,803 at March 31,
1996, an increase of $2,753,705. Mortgage backed securities
decreased $1,420,070 to a total of $22,785,779 at June 30, 1996,
from a total of $24,205,849 as of March 31, 1996.
Loans receivable increased to $47,175,133 on June 30, 1996 from
$45,031,460 on March 31, 1996, an increase of $2,143,673. The
decrease in mortgage backed securities and the increase in loans
receivable reflect the Bank's plan to increase the mortgage and
consumer loan portfolios and decrease the level of mortgage related
securities.
Deposits totaled $66,090,856 on June 30, 1996, a decrease from
$66,605,247 on March 31, 1996. The $514,391 decrease is due to
competitive rates offered by other financial institutions and
mutual funds. The Bank offers special terms and rates from time to
time to enable it to retain its depositor base.
Advances from the Federal Home Loan Bank of Des Moines increased
$5,000,000 at June 30, 1996. The Bank obtained an advance in the
amount of $5,000,000 to fund the purchase of a U.S. Government
agency security. These advances are short-term borrowings which
are utilized to invest in loans and investment securities when
funds are needed for arbitrage opportunities and are not available
from current operations.
RESULTS OF OPERATIONS
Net earnings for the Company's first quarter ended June 30, 1996,
were $195,276 compared to $84,463 for the comparable quarter in
1995. The increase was due to an improved net interest margin, and
an increase in interest earning assets as a result of investing the
net proceeds of the Company's stock offering which was completed on
September 28, 1995.
Net interest income after provision for loan losses for the first
quarter ended June 30, 1996, was $667,625 compared to $406,527 for
the similar period in 1995, an increase of $261,098. This increase
was a result of interest income rising from $1,267,073 in 1995 to
$1,572,520 in 1996 while interest expense increased from $860,546
in 1995 to $897,395 in 1996. The net interest margin for the first
quarter ended June 30, 1996, was 3.11% compared to 2.20% for the
first quarter of 1995.
The increase in net interest income reflects the redeployment of
funds from mortgage backed securities to mortgage and consumer
loans, and an increase in interest earning assets due to the
investment of the net proceeds from the Company's stock conversion
which was completed on September 28, 1995.
Non-interest income increased from $49,808 for the three months
ended June 30, 1995, to $92,505 for the three months ended June 30,
1996. The increase was due to improved life insurance sales in the
Bank's service corporation, and loan servicing fees during the
current quarter, and a gain on the sale of the Bank's data
processing center of $24,906.
The Company's non-interest expense for the three months ended June
30, 1996, was $450,036 compared to $328,457 for the comparable
period in 1995, an increase of $121,579. The increase was due to
expenses in the amount of $50,913 related to the Hardin Bancorp,
Inc. Employee Stock Ownership Plan (ESOP) and the Hardin Bancorp,
Inc. Recognition and Retention Plan (RRP), and additional expenses
related to becoming a public company.
PROVISION FOR LOAN LOSSES
The provision for loan losses is based on the periodic analysis of
the loan portfolio by management. In establishing the provision,
management considers numerous factors including general economic
conditions, loan portfolio condition, prior loss experience, and
independent analysis. The provision for loan losses for the three
months ended June 30, 1996 was $7,500. Based upon the analysis of
the addition to established allowances and the composition of the
loan portfolio, management concluded that the allowance is
adequate. While current economic conditions in the Bank's market
are stable, future conditions will dictate the level of future
allowances for losses on loans.
NONPERFORMING ASSETS
At June 30, 1996, nonperforming assets were approximately $134,000
compared to $94,000 on March 31, 1996. At June 30, 1996, the
Bank's allowance for loan losses was 104% of nonperforming loans
compared to 140% at March 31, 1996.
Loans are considered nonperforming when the collection of principal
and/or interest is not probable, or in the event payments are more
than 90 days delinquent.
CAPITAL RESOURCES
The Bank is subject to three capital to asset requirements in
accordance with Office of Thrift Supervision (OTS) regulations.
The following table is a summary of the Bank's regulatory capital
requirements versus actual capital as of June 30, 1996:
<TABLE>
<CAPTION>
CAPITAL REQUIREMENTS: Actual Required Excess
Amount/Percent Amount/Percent Amount/Percent
(Dollars in Thousands)
<S> <C> <C> <C>
Tangible $11,109/13.24% $1,258/1.50% $9,851/11.74%
Core Leverage Capital $11,109/13.24% $2,516/3.00% $8,593/10.24%
Risk-Based Capital $11,248/32.99% $2,728/8.00% $8,520/24.99%
</TABLE>
LIQUIDITY
The Bank's principal sources of funds are deposits, principal and
interest payments on loans, deposits in other insured institutions,
and investment securities. While scheduled loan repayments and
maturing investments are relatively predictable, deposit flows and
early loan payments are more influenced by interest rates, general
economic conditions and competition. Additional sources of funds
may be obtained from the Federal Home Loan Bank of Des Moines by
utilizing numerous available products to meet funding needs.
The Bank is required to maintain minimum levels of liquid assets as
defined by regulations. The required percentage is currently five
percent of net withdrawable savings deposits and borrowings payable
on demand or in one year or less. The Bank has maintained its
liquidity ratio at levels exceeding the minimum requirement. The
eligible liquidity ratios at March 31, 1996, and June 30, 1996,
were 7.74% and 6.79% respectively.
In light of the competition for deposits, the Bank may utilize the
funding sources of the Federal Home Loan Bank of Des Moines (FHLB)
to meet loan demand in accordance with the Bank's growth plans.
The wholesale funding sources may allow the Bank to obtain a lower
cost of funding and create a more efficient liability match to the
respective assets being funded.
For purposes of the cash flows, all short-term investments with a
maturity of three months or less at date of purchase are considered
cash equivalents. Cash and cash equivalents for the periods ended
June 30, 1996 and 1995 were $2,690,488 and $4,422,709
respectively. The decrease was primarily due to the net cash used
in investing activities for loan originations, loan purchases, and
the purchase of investment securities off-set by borrowings from
FHLB.
Net cash provided by operating activities increased from $75,021 at
June 30, 1995 to $371,399 at June 30, 1996. The increase was due
to improved net earnings and normal adjustments to accrued income
and expense items.
<PAGE>
<PAGE>
PART II - OTHER INFORMATION
Item 1. Legal Proceedings
None.
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
Exhibits:
27 - Financial Data Schedule
Reports on Form 8-K:
None.
<PAGE>
<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.
HARDIN BANCORP, INC.
Registrant
Date: August 9, 1996 (S) Robert W. King
Robert W. King, President
and Chief
Executive Officer (Duly
Authorized
Officer)
Date: August 9, 1996 (S) Karen K. Blankenship
Karen K. Blankenship,
Senior Vice
President and Secretary
(Principal
Financial Officer)
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