Exhibit 10(7)

                                      FIRST
                                    AMENDMENT
                                       TO
                         DEFERRED COMPENSATION AGREEMENT
                                       OF
                                 JAMES GARTLAND

This First  Amendment  to the  Deferred  Compensation  Agreement  between  FIRST
FEDERAL  SAVINGS BANK OF MARION and JAMES  GARTLAND,  dated May 1, 1992, for the
primary  purpose  of  clarifying  certain  aspects  of the death  benefit to Mr.
Gartland's  Beneficiary,  is hereby adopted in accordance with the provisions of
Section 14.1 of the Deferred Compensation Agreement as follows:

         SECTION 5.2 Death  Benefit  After  Commencement  of  Benefits  shall be
replaced with the following:

                  In the event of  Director's  death after the  commencement  of
                  Retirement  Benefits,  but prior to the completion of all such
                  payments due and owing hereunder, the Association shall pay to
                  Director's  Beneficiary  the unpaid  portion of the Retirement
                  Benefit  for the  remainder  of the one hundred  twenty  (120)
                  month  period.  In the event  Director  continues  in  service
                  beyond Normal  Retirement Date, upon Director's death, he will
                  be deemed  to have  commenced  his  Retirement  Benefits  (and
                  therefore  limited to a total of 120 monthly payments) even if
                  Director  has not  elected  to  begin  actual  receipt  of his
                  Deferred Compensation Benefit as specified in Section 4.3.

         IN WITNESS WHEREOF, the parties have caused this Amendment to Agreement
to be executed this 23rd day of May, 1994.

                                            /s/ James Gartland
                                            ------------------------------------
                                            James Gartland

                                            FIRST FEDERAL SAVINGS BANK OF MARION



                                            By:      /s/ Robert D. Burchard
                                                --------------------------------
                                                     Robert D. Burchard
                                            Title:      President