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
DECEMBER 31, 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: 0-21108
MARION CAPITAL HOLDINGS, INC.
(Exact name of registrant specified in its charter)
Indiana 35-1872393
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
100 West Third Street
P.O. Box 367
Marion, Indiana 46952
(Address of principal executive offices,
including Zip Code)
(317) 664-0556
(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 report), and (2) has been subject to such filing
requirements for the past 90 days. Yes [X] No [ ]
The number of shares of the Registrant's common stock, without par value,
outstanding as of February 7, 1997 was 1,844,142.
Marion Capital Holdings, Inc.
Form 10-Q
Index
Page No.
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements 3
Consolidated Condensed Statement of Financial
Condition as of December 31, 1996 and June 30, 1996 3
Consolidated Condensed Statement of Income for
the three-month periods ended December 31, 1996 and 1995 4
Consolidated Condensed Statement of Changes in
Shareholders' Equity for the three months ended
December 31, 1996 5
Consolidated Condensed Statement of Cash Flows
for the three months ended December 31, 1996 and 1995 6-7
Notes to Consolidated Condensed Financial Statements 8
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 8
PART II. OTHER INFORMATION
Item 1. Legal Proceedings 14
Item 6. Exhibits and Reports on Form 8-K 14
SIGNATURES 15
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MARION CAPITAL HOLDINGS, INC.
AND WHOLLY-OWNED SUBSIDIARY
FIRST FEDERAL SAVINGS BANK OF MARION
CONSOLIDATED CONDENSED STATEMENT OF FINANCIAL CONDITION
December 31, June 30,
1996 1996
------------- -------------
ASSETS
Cash $ 2,211,874 $ 2,365,805
Short-term interest bearing deposits 2,754,738 5,154,518
------------- -------------
Total cash and cash equivalents 4,966,612 7,520,323
Investment securities available for sale 1,007,500 999,750
Investment securities held to maturity
(market value $8,578,213 and $11,496,535) 8,615,029 11,566,476
Mortgage-backed securities (market value $623,755
and $1,389,232) 629,684 1,491,246
Loans receivable, net 146,804,984 143,164,641
Real estate owned, net 23,936 182,959
Premises and equipment 1,492,121 1,446,025
Stock in Federal Home Loan Bank (at cost which
approximates market) 988,400 988,400
Other assets 11,277,454 10,406,755
------------- -------------
Total assets $ 175,805,720 $ 177,766,575
============= =============
LIABILITIES
Deposits $ 123,911,566 $ 126,260,010
Advances from FHLB 8,233,390 6,241,474
Advances by borrowers for taxes and
insurance 199,703 392,278
Other liabilities 3,490,377 3,361,739
------------- -------------
Total liabilities 135,835,036 136,255,501
SHAREHOLDERS' EQUITY
Preferred Stock:
Authorized and unissued--2,000,000 shares 0 0
Common stock, without par value:
Authorized--5,000,000 shares
Issued and outstanding--1,843,942 and
1,933,613 shares 12,053,034 13,814,937
Retained earnings 28,182,049 28,128,458
Unrealized (gain) on securities available for sale 545 (119)
Unearned compensation (264,944) (432,202)
------------- -------------
Total shareholders' equity 39,970,684 41,511,074
------------- -------------
Total liabilities and shareholders' equity $ 175,805,720 $ 177,766,575
============= =============
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MARION CAPITAL HOLDINGS, INC.
AND WHOLLY-OWNED SUBSIDIARY
FIRST FEDERAL SAVINGS BANK OF MARION
CONSOLIDATED CONDENSED STATEMENT OF INCOME
Three Months Ended Six Months Ended
December 31, December 31,
-------------------------- --------------------------
1996 1995 1996 1995
----------- ----------- ----------- -----------
Interest income
Loans $ 3,202,867 $ 3,136,955 $ 6,386,241 $ 6,227,018
Mortgage-backed securities 11,202 29,081 27,889 61,332
Federal funds sold 0 0 0 0
Interest-bearing deposits 69,794 71,364 142,337 112,599
Investment securities 127,295 208,336 266,339 443,405
Other interest and dividend income 19,504 18,331 39,007 36,663
----------- ----------- ----------- -----------
Total interest income 3,430,662 3,464,067 6,861,813 6,881,017
Interest expense
Deposits 1,574,216 1,573,157 3,188,454 3,153,564
Advances from FHLB 109,064 114,892 209,097 234,086
Securities sold under agreement to repurchase 0 32,363 0 45,087
----------- ----------- ----------- -----------
Total interest expense 1,683,280 1,720,412 3,397,551 3,432,737
----------- ----------- ----------- -----------
Net interest income 1,747,382 1,743,655 3,464,262 3,448,280
Provision for losses on loans 5,759 24,243 9,949 24,243
----------- ----------- ----------- -----------
Net interest income after
provision for losses on loans 1,741,623 1,719,412 3,454,313 3,424,037
----------- ----------- ----------- -----------
Other income
Net loan servicing fees 22,886 20,001 45,093 39,179
Annuity and other commissions 45,387 38,189 89,903 82,595
Equity in losses of limited partnerships (60,000) (51,427) (120,000) (95,653)
Gain on sale of other assets 51,376 0 51,376 0
Other income 19,120 18,129 37,712 55,810
----------- ----------- ----------- -----------
Total other income 78,769 24,892 104,084 81,931
----------- ----------- ----------- -----------
Other expenses
Salaries and employee benefits 572,941 585,205 1,258,544 1,175,730
Occupancy expense 36,816 37,020 80,765 76,315
Equipment expense 14,021 14,531 28,322 27,567
Deposit insurance expense 85,129 81,532 946,780 162,290
Real estate operations, net 2,881 (19,800) 10,991 (18,335)
Other expenses 209,370 175,445 426,483 365,157
----------- ----------- ----------- -----------
Total other expenses 921,158 873,933 2,751,885 1,788,724
----------- ----------- ----------- -----------
Income before income taxes 899,234 870,371 806,512 1,717,244
Income tax expense 236,015 232,737 15,805 473,782
----------- ----------- ----------- -----------
Net income $ 663,219 $ 637,634 $ 790,707 $ 1,243,462
=========== =========== =========== ===========
Per Share
Net income $ 0.35 $ 0.31 $ 0.42 $ 0.60
Dividends $ 0.20 $ 0.18 $ 0.40 $ 0.36
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MARION CAPITAL HOLDINGS, INC.
AND WHOLLY-OWNED SUBSIDIARY
FIRST FEDERAL SAVINGS BANK OF MARION
CONSOLIDATED CONDENSED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
Common Stock Unearned Total
------------------------- Retained Unrealized gain Compensation Shareholders'
Shares Amount Earnings on Securities RRP Equity
--------- ----------- ----------- --------------- ------------ -------------
Balances, July 1, 1996 1,933,613 $13,814,937 $28,128,458 ($119) ($432,202) $41,511,074
Stock repurchases (96,680) (1,965,480) (1,965,480)
Exercise of stock options 7,009 70,090 70,090
Amortization of unearned
compensation 167,258 167,258
Net change in unrealized
(gain) on securities
available for sale 664 664
Net income for the
six months ended
December 31, 1996 790,707 790,707
Tax benefit on
compensation plans 133,487 133,487
Cash dividends (737,116) (737,116)
--------- ----------- ----------- ---- --------- -----------
Balances, December 31, 1996 1,843,942 $12,053,034 $28,182,049 $545 ($264,944) $39,970,684
========= =========== =========== ==== ========= ===========
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MARION CAPITAL HOLDINGS, INC.
AND WHOLLY-OWNED SUBSIDIARY
FIRST FEDERAL SAVINGS BANK OF MARION
CONSOLIDATED CONDENSED STATEMENT OF CASH FLOWS
Six Months Ended
December 31,
--------------------------
1996 1995
----------- -----------
CASH FLOWS FROM OPERATING ACTIVITIES
Net income $ 790,707 $ 1,243,462
Adjustments to reconcile net income to
net cash provided by operating activities:
Provision for loan losses 9,949 24,243
Provision for real estate owned losses 0 (20,070)
Equity in loss of limited partnerships 120,000 95,653
Amortization of net loan origination fees (131,683) (103,687)
Net amortization (accretion) of investment
securities' premiums and discounts 10,317 10,705
Net amortization (accretion) of mortgage-
backed securities and CMO premiums 750 4,421
Amortization of unearned compensation 167,258 172,192
Depreciation 39,021 38,493
Deferred income tax (147,260) (108,221)
Origination of loans for sale (3,696,650) (2,637,808)
Proceeds from sale of loans 3,696,650 2,637,808
Change in:
Interest receivable (50,796) (99,324)
Interest payable and other liabilities 128,638 135,290
Cash value of insurance (214,762) (55,000)
Prepaid expense and other assets 61,942 (59,278)
Net cash provided by operating
activities 784,081 1,278,879
----------- -----------
INVESTING ACTIVITIES
Purchase of investment securities
available for sale (1,007,031) (1,984,528)
Proceeds from maturity of investment
securities available for sale 1,000,000 1,000,000
Purchase of investment securities
held to maturity (3,000,000) 0
Proceeds from maturity of investment
securities held to maturity 5,937,161 1,000,000
Payments on mortgage-backed securities 860,812 240,267
Net changes in loans (3,385,417) (2,400,352)
Proceeds from real estate owned sales 30,722 24,000
Purchases of premises and equipment (85,117) (17,987)
Premiums paid on Life Insurance (860,000) 0
Death benefits received on life insurance 352,687 0
----------- -----------
Net cash used by investing
activities (156,183) (2,138,600)
----------- -----------
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CONSOLIDATED CONDENSED STATEMENT OF CASH FLOWS (continued)
Six Months Ended
December 31,
--------------------------
1996 1995
----------- -----------
FINANCING ACTIVITIES Net change in:
Noninterest-bearing deposits, NOW
passbook and money market savings
accounts (473,687) 530,784
Certificates of deposit (1,874,757) 718,549
Proceeds from FHLB advances 5,000,000 3,000,000
Repayment of FHLB advances (3,008,084) (3,221,678)
Proceeds from securities sold under
agreement to repurchase 0 2,520,389
Repayment of securities sold under
agreement to repurchase 0 (1,000,000)
Net change in advances by borrowers for
taxes and insurance (192,575) (8,881)
Proceeds from exercise of stock options 70,090 151,990
Stock repurchases (1,965,480) 0
Dividends paid (737,116) (718,678)
----------- -----------
Net cash provided (used) by
financing activities (3,181,609) 1,972,475
----------- -----------
NET CHANGE IN CASH AND CASH EQUIVALENTS (2,553,711) 1,112,754
CASH AND CASH EQUIVALENTS,
BEGINNING OF PERIOD 7,520,323 3,483,184
----------- -----------
CASH AND CASH EQUIVALENTS,
END OF PERIOD $ 4,966,612 $ 4,595,938
=========== ===========
ADDITIONAL CASH FLOWS AND SUPPLEMENTARY
INFORMATION
Interest paid $ 3,392,443 $ 3,436,148
Income tax paid 305,879 444,958
Loan balances transferred to real
estate owned 96,896 148,029
Loans to finance the sale of real
estate owned 210,000 359,500
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MARION CAPITAL HOLDINGS, INC.
AND WHOLLY-OWNED SUBSIDIARY
FIRST FEDERAL SAVINGS BANK OF MARION
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
NOTE A: Basis of Presentation
The unaudited interim consolidated condensed financial statements include the
accounts of Marion Capital Holdings, Inc. (the "Company") and its subsidiary
First Federal Savings Bank of Marion (the "Bank").
The unaudited interim consolidated condensed financial statements have been
prepared in accordance with the instructions to Form 10-Q and, therefore, do not
include all information and disclosures required by generally accepted
accounting principles for complete financial statements. In the opinion of
management, the financial statements reflect all adjustments, comprising only
normal recurring accruals, necessary to present fairly the Company's financial
position as of December 31, 1996, results of operations for the three month and
six month periods ended December 31, 1996 and 1995, and cash flows for the six
month periods ended December 31, 1996 and 1995.
NOTE B: Dividends and Earnings Per Share
On November 18, 1996, the Board of Directors declared a quarterly cash dividend
of $.20 per share. This dividend was paid on December 13, 1996 to shareholders
of record as of November 29, 1996.
The per share amounts were computed based on average common and common
equivalent shares outstanding for the three month and six month periods ended
December 31, 1996 of 1,899,692 and 1,906,115, respectively. For the three month
and six month periods ended December 31, 1995 average common and common
equivalent shares outstanding amounted to 2,073,567 and 2,072,067, respectively.
NOTE C: Accounting For Mortgage Servicing Rights
The Company adopted Statement of Accounting Standards ("SFAS") No. 122,
Accounting for Mortgage Servicing Rights, on July 1, 1996. Mortgage servicing
rights on originated loans are capitalized by allocating the total cost of the
mortgage loans between the mortgage servicing rights and the loans based on
their relative fair values. Capitalized servicing rights are amortized in
proportion to and over the period of estimated servicing revenues. The adoption
of SFAS No. 122 did not have a material effect on the Company's financial
statements.
Item 2: Management's Discussion and Analysis of Financial Condition and Results
of Operations.
General:
The Company's total assets were $175.8 million at December 31, 1996 compared to
$177.8 million at June 30, 1996. Cash and cash equivalents decreased $2.6
million or 34.0% and investment securities were decreased $2.9 million or 23.4%
from June 30, 1996 to December 31, 1996. Loans receivable were $146.8 million at
December 31, 1996, an increase of $3.6 million, or 2.5%, from June 30, 1996.
This increase is due primarily to an origination of a $2.5 million loan to
another savings and loan holding company over a seven year period. Real estate
owned decreased to $24,000 at December 31, 1996, compared to $183,000 at June 30
1996.
-8-
Deposits decreased to $123.9 million at December 31, 1996 compared to $126.3
million at June 30, 1996, a 1.9% decrease. This $2.4 million decrease
represented a $474,000 decrease in passbook and transaction accounts and an
approximate $1,875,000 decrease in certificate of deposit accounts. This
decrease in total deposits results primarily from an outflow of existing
accounts to different market alternatives. The Bank continues to pay competitive
rates on its savings products compared to other financial institutions in its
market area.
Other liabilities increased from $3.4 million at June 30, 1996 to $3.5 million
at December 31, 1996 as a result of normal operational increases.
Shareholders' equity was $40.0 million at December 31, 1996, compared to $41.5
million at June 30, 1996. This decrease was the result of completing a 5%
repurchase of common stock on the open market during July, 1996.
Net income for the six months ended December 31, 1996 of $790,707 represents a
36.4% decrease in income reported for the same period in the prior year. This
decrease in earnings is attributable directly to the signing of the omnibus
appropriations bill on September 30, 1996, which imposed a FDIC special
assessment for all institutions with SAIF-insured deposits. This assessment
amounted to $776,717 and is included in deposit insurance expense for the six
months ended December 31, 1996. The assessment was payable November 27, 1996.
The after-tax effect on net income was $469,059 for the six months ended
December 31, 1996. SAIF-insured institutions will likely incur a benefit from
reduction of FDIC premiums beginning January 1, 1997, which should have a
positive effect on earnings in future periods. For the six months ended December
31, 1996, First Federal made a provision of $10,000 for general loan losses
compared to $24,000 in loss provisions for the same period in the prior year.
Management continues to review its current portfolio to ensure that total loss
reserves remain adequate.
Results of Operations Comparison of Three Months Ended December 31, 1996 and
December 31, 1995
Net income for the three months ended December 31, 1996 was $663,219 compared
with $637,634 for the three months ended December 31, 1995, an increase of
$25,585 or 4.0%. During the quarter ended December 31, 1996, a gain of $51,376
was recognized on the sale of other assets. Interest income for the three months
ended December 31, 1996 decreased $33,405 or 1.0% compared to the same period in
the prior year, while interest expense for the three months ended December 31,
1996 decreased $37,132 or 2.2% compared to the same period in the prior year.
As a result, net interest income for the three months ended December 31, 1996
amounted to $1,747,382, an increase of $3,727 or 0.2% compared to the same
period in the prior year.
A provision of $6,000 for losses on loans was made for the three months ended
December 31, 1996, compared to a $24,000 provision in the same period last year.
Total other income increased by $53,877 for the three months ended December 31,
1996, compared to the same period in the prior year. This increase was
attributed to a gain on the sale of other assets of $51,376.
Total other expenses increased by $47,225, or 5.4% for the three months ended
December 31, 1996, compared to the same period in the prior year. Salaries and
employee benefits decreased $12,264, or 2.1%. Real estate operation expense
increased by $22,681 for the three months ended December 31, 1996, compared to
the same period in the prior year. Other expense increases were normal
operational increases.
Income tax expense for the three months ended December 31, 1996 amounted to
$236,015, an increase of $3,278 over the three months ended December 31, 1995,
as the result of increased income. The Company's effective tax rate for the
three months ended December 31, 1996 was 26.2% compared to 26.7% for the
comparable period in 1995.
-9-
Results of Operations Comparison of Six Months Ended December 31, 1996 and
December 31, 1995
Net income for the six months ended December 31, 1996 was $790,707 compared with
$1,243,462 for the six months ended December 31, 1995, a decrease of $452,755 or
36.4%. This decrease is the direct result of the FDIC special assessment
previously described. Interest income for the six months ended December 31, 1996
decreased $19,204 or .3% compared to the same period in the prior year, while
interest expense for the six months ended December 31, 1996 decreased $35,186 or
1.0% compared to the same period in the prior year. These decreases reflect the
repricing of assets and liabilities to lower rates and a decrease in deposit
balances outstanding. As a result, net interest income for the six months ended
December 31, 1996 amounted to $3,464,262, an increase of $15,982 or 0.5%
compared to the same period in the prior year.
A $10,000 provision for loss on loans for the six months ended December 31, 1996
was made compared to a $24,000 provision reported in the same period last year.
Total other income increased by $22,153 for the six months ended December 31,
1996, compared to the same period in the prior year, in part as the result of
increased sales of annuity and security products. Annuity and security product
sales commissions were up $7,308, or 8.8% for the six months ended December 31,
1996, compared to the same period in the prior year.
Total other expenses increased by $963,161 or 53.8% for the six months ended
December 31, 1996, compared to the same period in the prior year. The FDIC
special assessment accounts for $776,717 of the increase. Salaries and employee
benefits increased $82,814, or 7.0%. Real estate operation expense increased by
$29,326 for the six months ended December 31, 1996, compared to the same period
in the prior year. Other expense increases were normal operational increases.
Income tax expense for the six months ended December 31, 1996, amounted to
$15,805, a decrease of $457,977 from the six months ended December 31, 1995 as a
result of reduced income due to the FDIC special assessment.
Allowance for loan losses amounted to $2.0 million at December 31, 1996, which
was unchanged from June 30, 1996 after adjusting for charge-offs and recoveries.
Management considered the allowances for loan and real estate losses at December
31, 1996, to be adequate to cover estimated losses inherent in those portfolios
at that date, and its consideration included probable losses that could be
reasonably estimated. Such belief is based upon an analysis of loans currently
outstanding, real estate owned, past loss experience, current economic
conditions and other factors and estimates which are subject to change over
time. The following table illustrates the changes affecting the allowance
accounts for the six months ended December 31, 1996.
Allowance For Allowance For Total
Loan Losses REO Losses Allowances
------------- ------------- -----------
Balances at July 1, 1996.................. $2,009,250 $16,118 $2,025,368
Provision for losses...................... 9,949 0 9,949
Recoveries................................ 0 31,871 31,871
Loans and REO charged off................. (6,523) (19,025) (25,548)
---------- ------- ----------
Balances at December 31, 1996............. $2,012,676 $28,964 $2,041,640
The loan loss reserves to total loans at December 31, 1996 equaled 1.35% of
total loans outstanding, compared to 1.38% of total loans outstanding at June
30, 1996. Total non-performing assets increased during the six months ended
December 31, 1996, from $1.9 million at June 30, 1996 to $2.3 million at
December 31, 1996. Non-
-10-
performing assets at December 31, 1996 consisted of $24,000 in real estate owned
and loans delinquent greater than 90 days of $2.3 million.
Total non-performing loans totaled 1.54% of total loans outstanding at December
31, 1996 compared to 1.18% of total loans at June 30, 1996.
The following table further depicts the amounts and categories of the Bank's
non-performing assets. It is the policy of the Bank that all earned but
uncollected interest on all loans be reviewed monthly to determine if any
portion thereof should be classified as uncollectible for any loan past due in
excess of 90 days.
December 31, June 30,
1996 1996
--------- ---------
(Dollars in Thousands)
Accruing loans delinquent
more than 90 days.................... --- $ ---
Non-accruing loans:
Residential.......................... 1,927 1,659
Multi-family......................... --- ---
Commercial........................... 112 47
Consumer............................. 257 11
Troubled debt restructurings............. --- ---
-------- --------
Total non-performing loans........... 2,296 1,717
Real estate owned, net................... 24 183
------- -------
Total non-performing assets.......... $ 2,320 $ 1,900
======= =======
Non-performing loans to
total loans, net..................... 1.54% 1.18%
Non-performing assets to
total assets......................... 1.32% 1.07%
Average Balances and Interest
The following table presents for the periods indicated the monthly average
balances of the Company's interest-earning assets and interest-bearing
liabilities, the interest earned or paid on such amounts, and the average yields
earned and rates paid. Such yields and costs are determined by dividing income
or expense by the average balance of assets or liabilities for the periods
presented.
-11-
Three Months Ended December 31
1996 1995
----------------------------------- ----------------------------------
(Dollars in thousands)
Average Average Average Average
Balance Interest Rate Balance Interest Rate
------- -------- ---- ------- -------- ----
Total interest-
earnings assets............. $163,623 $3,430 8.39% $164,942 $3,464 8.40%
Total interest-
bearing liabilities......... 129,603 1,683 5.19% 129,004 1,720 5.33%
Net interest income/
Interest rate spread........... 1,747 3.20% 1,744 3.07%
===== =====
Six Months Ended December 31
1996 1995
----------------------------------- ----------------------------------
(Dollars in thousands)
Average Average Average Average
Balance Interest Rate Balance Interest Rate
------- -------- ---- ------- -------- ----
Total interest-
earning assets.............. $164,215 $6,862 8.36% $164,034 $6,881 8.39%
Total interest-
bearing liabilities......... 129,242 3,398 5.26% 128,374 3,433 5.35%
Net interest income/
Interest Rate Spread........... 3,464 3.10% 3,448 3.04%
-12-
Financial Condition
Shareholders' equity at December 31, 1996 was $39,970,684, a decrease of
$1,540,390 or 3.7% from June 30, 1996. The Company's equity to asset ratio was
22.74% at December 31, 1996 compared to 23.35% at June 30, 1996. All fully
phased-in capital requirements are currently met. The following table depicts
the amounts and ratios of the Bank's capital as of December 31, 1996, under each
of the three regulatory capital requirements (tangible, core, and fully
phased-in risk based):
Tangible Core Risk-Based
Capital Capital Capital
------- ------- -------
(Dollars in thousands)
Amount.................................... $ 36,507 $ 36,507 $ 37,925
As a percent of assets, as defined........ 21.2% 21.2% 33.6%
Required amount........................... 2,580 5,160 9,029
As a percent of assets, as defined........ 1.5% 3.0% 8.0%
Capital in excess of
required amount........................ $ 33,927 $ 31,347 $ 28,896
Liquidity and Capital Resources
The standard measure of liquidity for savings associations is the ratio of cash
and eligible investments to a certain percentage of net withdrawable savings
accounts and borrowings due within one year. The minimum required ratio is
currently set by the Office of Thrift Supervision regulation at 5%, of which 1%
must be comprised of short-term investments. At December 31, 1996, the Bank's
liquidity ratio was 10.8% of which 4.4% was comprised of short-term investments.
-13-
PART II OTHER INFORMATION
Item 1. Legal Proceedings
Neither the Company nor the Bank were during the three-month period ended
December 31, 1996, or are as of the date hereof involved in any legal proceeding
of a material nature. From time to time, the Bank is a party to legal
proceedings wherein it enforces its security interests in connection with its
mortgage loans.
Item 6. Exhibits and Reports on Form 8-K
a) Exhibit 27 is the Financial Data Schedule
b) The Company filed no reports on Form 8-K during the quarter ended
December 31, 1996.
-14-
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
MARION CAPITAL HOLDINGS, INC.
Date: February 14, 1997 By: /s/ John M. Dalton
-----------------------------------
John M. Dalton,
President
Date: February 14, 1997 By: /s/ Larry G. Phillips
-----------------------------------
Larry G. Phillips, Vice President,
Secretary and Treasurer
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