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, 1997
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 0-27940
HARRINGTON FINANCIAL GROUP, INC.
- ------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
INDIANA 48-1050267
- --------------------------------- ----------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
722 Promenade
Richmond, Indiana 47374
- --------------------------------------- ----------
(Address of principal executive office) (Zip Code)
(765) 962-8531
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(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 9, 1997, there
were issued and outstanding 3,256,738 shares of the Registrant's Common
Stock, par value $.125 per share.
HARRINGTON FINANCIAL GROUP, INC. AND SUBSIDIARY
TABLE OF CONTENTS
PART I. FINANCIAL INFORMATION PAGE
- --------- ---------------------------------------------------- -----
Item 1. Financial Statements
Consolidated Balance Sheets as of March 31, 1997
(unaudited) and June 30, 1996 1
Consolidated Statements of Income (unaudited) for
the three and nine months ended March 31, 1997 and
1996. 2
Consolidated Statements of Cash Flows (unaudited)
for the nine months ended March 31, 1997 and 1996. 3
Notes to Unaudited Consolidated Financial Statements 4
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 6
Part II. Other Information
Item 1. Legal Proceedings 10
Item 2. Changes in Securities 10
Item 3. Defaults Upon Senior Securities 10
Item 4. Submission of Matters to a Vote of Security-Holders 10
Item 5. Other Information 10
Item 6. Exhibits and Reports on Form 8-K 10
SIGNATURES
HARRINGTON FINANCIAL GROUP, INC. AND SUBSIDIARY
Consolidated Balance Sheets
(Dollars in Thousands)
(Unaudited)
MARCH 31, JUNE 30,
1997 1996
---------- ----------
ASSETS
Cash........................................................................... $ 952 $ 1,036
Interest-bearing deposits...................................................... 13,348 16,107
---------- ----------
Total cash and cash equivalents.............................................. 14,300 17,143
Securities held for trading--at fair value (amortized cost of $384,590 and
$323,936).................................................................... 384,251 324,221
Securities available for sale--at fair value (amortized cost of $1,246 and
$2,062)...................................................................... 1,188 2,050
Due from brokers............................................................... 20,766 --
Loans receivable, net.......................................................... 85,821 65,925
Interest receivable, net....................................................... 1,991 1,807
Premises and equipment, net.................................................... 3,461 3,105
Federal Home Loan Bank of Indianapolis stock................................... 2,645 2,645
Other.......................................................................... 937 1,300
---------- ----------
Total assets................................................................. $ 515,360 $ 418,196
---------- ----------
---------- ----------
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits....................................................................... $ 130,952 $ 135,143
Securities sold under agreements to repurchase................................. 312,865 219,067
Federal Home Loan Bank advances................................................ 26,000 26,000
Interest payable............................................................... 1,705 1,970
Note payable................................................................... 10,729 8,998
Due to brokers................................................................. 5,863 --
Advance payments by borrowers for taxes & insurance............................ 742 392
Deferred income taxes, net..................................................... 187 663
Accrued income taxes payable................................................... 1,230 115
Deferred compensation payable.................................................. 96 119
Accrued expenses payable and other liabilities................................. 344 2,612
---------- ----------
Total liabilities............................................................ 490,713 395,079
---------- ----------
Common stock................................................................... 407 407
Additional paid-in-capital..................................................... 15,623 15,623
Unrealized loss on securities available for sale, net of tax................... (35) (8)
Retained earnings.............................................................. 8,652 7,095
---------- ----------
Total stockholders' equity................................................... 24,647 23,117
---------- ----------
Total liabilities and stockholders' equity................................. $ 515,360 $ 418,196
---------- ----------
---------- ----------
See notes to unaudited consolidated financial statements.
1
HARRINGTON FINANCIAL GROUP, INC. AND SUBSIDIARY
Consolidated Statements of Income
(Dollars in Thousands Except Share Data)
(Unaudited)
THREE MONTHS ENDED NINE MONTHS ENDED
MARCH 31, MARCH 31,
-------------------- --------------------
1997 1996 1997 1996
---------- ---------- --------- ---------
INTEREST INCOME
Securities held for trading............................................. $ 6,733 $ 4,244 $ 21,438 $ 13,386
Securities available for sale........................................... 30 56 104 158
Loans receivable........................................................ 1,591 1,109 4,345 3,043
Dividends on Federal Home Loan Bank stock............................... 51 50 155 151
Deposits................................................................ 316 187 894 575
Net interest expense on interest rate contracts maintained in the
trading portfolio..................................................... (335) (30) (517) (144)
--------- --------- --------- ---------
Interest income......................................................... 8,386 5,616 26,419 17,169
--------- --------- --------- ---------
INTEREST EXPENSE
Deposits................................................................ 1,779 1,793 5,508 5,311
Federal Home Loan Bank advances......................................... 401 365 1,226 1,241
Short-term borrowings................................................... 4,009 1,961 12,718 6,088
Long-term borrowings.................................................... 231 219 681 694
--------- --------- --------- ---------
Interest expense........................................................ 6,420 4,338 20,133 13,334
--------- --------- --------- ---------
NET INTEREST INCOME...................................................... 1,966 1,278 6,286 3,835
PROVISION FOR LOAN LOSSES................................................ 93 -- 93 (1)
--------- --------- --------- ---------
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES...................... 1,873 1,278 6,193 3,836
--------- --------- --------- ---------
OTHER INCOME
Gain on sale of securities held for trading............................. 6,006 5,088 995 2,467
Unrealized loss on securities held for trading.......................... (5,408) (4,498) (624) (2,046)
Other................................................................... 59 76 175 190
--------- --------- --------- ---------
Total other income...................................................... 657 666 546 611
--------- --------- --------- ---------
OTHER EXPENSE
Salaries and employee benefits.......................................... 577 525 1,571 1,310
Premises and equipment expense.......................................... 141 126 387 340
FDIC insurance premiums................................................. 22 69 159 209
Special SAIF assessment................................................. -- -- 830 --
Marketing............................................................... 17 69 54 164
Computer services....................................................... 44 40 119 105
Consulting fees......................................................... 72 58 211 172
Other................................................................... 288 157 863 455
--------- --------- --------- ---------
Total other expenses.................................................... 1,161 1,044 4,194 2,755
--------- --------- --------- ---------
INCOME BEFORE INCOME TAX PROVISION...................................... 1,369 900 2,545 1,692
INCOME TAX PROVISION.................................................... 534 293 988 542
--------- --------- --------- ---------
NET INCOME.............................................................. $ 835 $ 607 $ 1,557 $ 1,150
--------- --------- --------- ---------
--------- --------- --------- ---------
NET INCOME PER SHARE.................................................... $ 0.26 $ 0.30 $ 0.48 $ 0.58
--------- --------- --------- ---------
--------- --------- --------- ---------
See notes to unaudited consolidated financial statements.
2
HARRINGTON FINANCIAL GROUP, INC. AND SUBSIDIARY
Consolidated Statements of Cash Flows
(Dollars in Thousands)
(Unaudited)
NINE MONTHS ENDED
MARCH 31,
----------------------
1997 1996
---------- ----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income............................................................ $ 1,557 $ 1,150
Adjustments to reconcile net income to net cash used in operating
activities:
Provision (credit) for loan losses.................................... 93 (1)
Depreciation.......................................................... 175 147
Premium and discount amortization of securities, net.................. 1,568 1,452
Amortization of premiums and discounts on loans....................... 9 (118)
Gain on sale of securities held for trading........................... (995) (2,467)
Unrealized loss on securities held for trading........................ 624 2,046
Deferred income tax provision......................................... (476) (714)
Decrease in interest receivable....................................... (184) (194)
Increase (decrease) in interest payable............................... (265) 758
Increase in accrued income taxes...................................... 1,115 72
Purchases of securities held for trading.............................. (715,396) (216,531)
Increase in amounts due to brokers.................................... 5,863 --
Increase in amounts due from brokers.................................. (20,766) --
Proceeds from maturities of securities held for trading............... 20,277 18,117
Proceeds from sales of securities held for trading.................... 633,892 200,488
Decrease in other assets.............................................. 363 1,207
Increase (decrease) in accrued expenses and other liabilities......... (1,941) 530
---------- ----------
Net cash provided by (used in) operating activities.................. (74,487) 5,942
---------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from maturities of securities available for sale............. 835 473
Change in loans receivable, net....................................... (19,998) (21,772)
Purchases of premises and equipment................................... (531) (829)
---------- ----------
Net cash used in investing activities................................. (19,694) (22,128)
---------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Net increase (decrease) in deposits................................... (4,191) 11,705
Increase in securities sold under agreements to repurchase............ 93,798 12,913
Proceeds from stock options exercised................................. -- 165
Proceeds from Federal Home Loan Bank advances......................... 3,300 10,000
Proceeds from note payable............................................ 2,300 800
Principal repayments on Federal Home Loan Bank advances............... (3,300) (15,000)
Principal repayments on note payable.................................. (569) (737)
---------- ----------
Net cash provided by financing activities............................. 91,338 19,846
---------- ----------
NET INCREASE (DECREASE) IN CASH AND EQUIVALENTS....................... (2,843) 3,660
CASH AND CASH EQUIVALENTS
Beginning of period................................................... 17,143 5,705
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CASH AND CASH EQUIVALENTS
End of period......................................................... $ 14,300 $ 9,365
---------- ----------
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Cash paid for interest................................................ $ 19,804 $ 7,500
Cash paid for income taxes............................................ 100 728
See notes to unaudited consolidated financial statements.
3
HARRINGTON FINANCIAL GROUP, INC. AND SUBSIDIARY
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1--BUSINESS OF THE COMPANY
Harrington Financial Group, Inc. (the "Company") is a savings and loan
holding company incorporated in 1988 to acquire and hold all of the
outstanding common stock of Harrington Bank, FSB (the "Bank"), a federally
chartered savings bank with principal offices in Richmond, Indiana and two
branch locations in Hamilton County, Indiana.
NOTE 2--BASIS OF PRESENTATION
The accompanying unaudited consolidated financial statements of the
Company 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 presentation of results for the interim
periods.
The results of operations for the three and nine months ended March 31,
1997 are not necessarily indicative of the results to be expected for the
year ending June 30, 1997. 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 June 30, 1996.
Reclassifications of certain prior period amounts have been made to conform
with the March 31, 1997 presentation.
NOTE 3--RECENT ACCOUNTING PRONOUNCEMENTS
The Company adopted Statement of Financial Accounting Standards (FAS)
121, "Accounting for the Impairment of Long-Lived Assets or for Long-Lived
Assets to be Disposed of," effective July 1, 1996. The adoption of FAS 121
had no effect on the financial position or results of operations of the
Company.
The Company adopted FAS 122, "Accounting for Mortgage Servicing Rights,"
effective July 1, 1996. Due to the fact that the Company currently does not
originate loans for sale, the adoption of FAS 122 has not had an effect on
the financial position or results of operations of the Company.
The Company adopted FAS 123, "Accounting for Stock-Based Compensation,"
effective July 1, 1996. The Company has elected to continue to account for
stock-based transactions under Accounting Principles Board Opinion No. 25
"Accounting for Stock Issued to Employees" but will disclose in the notes to
the financial statements the pro forma effects of the new method of
accounting under FAS 123.
4
FAS 128, "Earnings per Share," applies to financial statements for public
companies for fiscal years beginning after December 15, 1997. This statement
establishes new accounting standards for the calculation of basic earnings
per share as well as diluted earnings per share. Management does not believe
the adoption of this statement will have a material effect on the Company's
calculation of earnings per share.
5
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
FINANCIAL CONDITION
At March 31, 1997, the Company's total assets amounted to $515.4 million,
as compared to $418.2 million at June 30, 1996. The $97.2 million or 23.2%
increase in total assets during the nine months ended March 31, 1997 was
primarily the result of a $60.0 million increase in securities held for
trading, a $20.8 million increase in receivables from brokers and a $19.9
million increase in net loans receivable which was partially offset by an
$2.8 million decrease in cash and cash equivalents. The increase in
securities held for trading was a result of further utilization of the
capital raised in the Company's May 1996 initial public offering (IPO). The
increase in receivables from brokers is a result of recording unsettled sales
of specific securities in the held for trading classification on a trade date
basis as of March 31, 1997. The increase in loans receivable reflected the
Company's continuing efforts to increase its retail banking operations,
particularly the origination (both directly and through correspondent
mortgage banking companies) of single-family residential loans. The increase
in the Company's assets from June 30, 1996 to March 31, 1997 was funded
primarily by a $93.8 million or 42.8% increase in securities sold under
agreements to repurchase.
At March 31, 1997, the Company's stockholders' equity amounted to $24.6
million, as compared to $23.1 million at June 30, 1996. The 6.6% increase in
stockholders' equity was due to the $1.6 million of net income recognized
during the nine month period. At March 31, 1997, the Bank's tangible and core
capital amounted to $34.4 million or 6.7% of adjusted total assets, which
exceeded the minimum 1.5% and 3.0% requirements by $26.7 million and $19.0
million, respectively. Additionally, as of such date, the Bank's risk-based
capital totalled $34.6 million or 31.7% of total risk-adjusted assets, which
exceeded the minimum 8.0% requirement by $25.9 million.
RESULTS OF OPERATIONS
GENERAL. The Company reported earnings of $835,000 or $0.26 per share and
$1.6 million or $0.48 per share during the three and nine months ended March
31, 1997, as compared to $607,000 or $0.30 per share and $1.2 million or
$0.58 per share during the prior comparable periods. The $228,000 or 37.6%
increase in earnings during the three months ended March 31, 1997, as
compared to the same period in the prior year, was primarily due to a
$688,000 increase in net interest income which was partially offset by a
$93,000 increase in the provision for loan losses, a $117,000 increase in
operating expenses and a $241,000 increase in the Company's income tax
provision. The $407,000 or 35.4% increase in earnings during the nine months
ended March 31, 1997, as compared to the same period in the prior year, was
primarily due to a $2.5 million increase in net interest income which was
partially offset by a $93,000 increase in the provision for loan losses, a
$50,000 decrease in realized and unrealized net gains on securities held for
trading, a $1.4 million increase in operating expenses
6
(of which $830,000 related to the special assessment to recapitalize the
Savings Association Insurance Fund (SAIF)) and a $446,000 increase in the
Company's income tax provision.
The Bank's deposits are insured by the SAIF, which is statutorily
required to be recapitalized to a ratio of 1.25% of insured deposits. The
Bank Insurance Fund (BIF) met its required capitalization levels in 1995 and,
as a result, most BIF insured banks have been paying significantly lower
premiums than SAIF insured institutions. The legislation enacted by the U.S.
Congress, which was signed by the President on September 30, 1996, has
recapitalized the SAIF by a one-time charge of $0.657 for each $100 of
assessable deposits held at March 31, 1995. Although this resulted in expense
of $830,000 recognized in the Company's earnings for the nine months ended
March 31, 1997, future earnings will be enhanced due to lower insurance
premiums. The Bank's insurance premiums, which had amounted to $0.23 for
every $100 of assessable deposits, were reduced to $0.065 for every $100 of
assessable deposits beginning on January 1, 1997. Given this reduction, the
Bank expects to save approximately $136,000 per year on SAIF assessments, net
of taxes.
SELECTED FINANCIAL RATIOS. The following schedule shows selected
financial ratios for the three and nine months ended March 31, 1997 and 1996.
AT OR FOR THE THREE AT OR FOR THE NINE
MONTHS ENDED MONTHS ENDED
MARCH 31, MARCH 31,
-------------------- --------------------
1997 1996 1997 1996
--------- --------- --------- ---------
Return on average............................................................... .66% .75% .40% .48%
Return on average assets, excluding special SAIF assessment..................... .66% .75% .54% .48%
Return on average equity........................................................ 13.64% 21.06% 8.75% 13.93%
Return on average equity, excluding special SAIF assessment..................... 13.64% 21.06% 11.69% 13.93%
Interest rate spread(1)......................................................... 1.40% 1.67% 1.47% 1.65%
Net interest margin (2)......................................................... 1.60% 1.68% 1.66% 1.68%
Operating expenses to average assets............................................ .92% 1.29% 1.08% 1.15%
Operating expenses to average assets, excluding special SAIF assessment......... .92% 1.29% .87% 1.15%
Efficiency ratio (3)............................................................ 60.09% 77.10% 65.86% 68.43%
Efficiency ratio (3), excluding special SAIF assessment......................... 60.09% 77.10% 52.81% 68.43%
Non-performing assets to total assets........................................... .23% .43% .23% .43%
Loan loss reserves to non-performing loans...................................... 63.20% 45.98% 63.20% 45.98%
- ------------------------
(1) Interest rate spread is the difference between interest income as a
percentage of interest earning assets and interest expense as a percentage
of interest bearing liabilities.
(2) Net interest margin is net interest income divided by average
interest-earning assets.
(3) The efficiency ratio is total other expense as a percentage of the net
interest income after provision for loan losses plus other income, excluding
gains and losses on securities held for trading.
7
NET INTEREST INCOME. Net interest income increased by $688,000 or 53.8%
during the three months ended March 31, 1997, as compared to the same period
in the prior year. This increase was primarily due to a $187.1 million
increase in the level of average interest-earning assets and was partially
offset by a 27 basis point decline in the Company's interest rate spread. Net
interest income increased by $2.5 million or 63.9% during the nine months
ended March 31, 1997 as compared to the same period in the prior year. The
increase was primarily due to a $201.9 million increase in the level of
average interest-earning assets which was partially offset by an 18 basis
point decline in the Company's interest spread. The decline in the Company's
interest rate spread for the three and nine months ended March 31, 1997 was
primarily due to the Bank investing the capital raised in the Company's May
1996 IPO in mortgage-backed and related securities, which earn somewhat lower
option-adjusted spreads than the mortgage loans in the Company's portfolio.
These purchases were funded primarily through reverse repurchase agreements.
PROVISION FOR LOAN LOSSES. Although delinquencies and loan write-offs
continue to be low and the non-performing assets remain stable, the Company
increased the general allowance for loan losses by $93,000 during the three
months ended March 31, 1997 in order to cover the substantial loan growth
during the last several quarters. Total provision for loan losses amounted to
$93,000 during the three and nine months ended March 31, 1997 as compared to
none during the three months ended March 31, 1996 and a recovery of $1,000
during the nine months ended March 31, 1996.
OTHER INCOME. Total other income amounted to $657,000 and $546,000
during the three months and nine months ended March 31, 1997, as compared to
$666,000 and $611,000 during the respective periods in the prior year. This
income principally represents the net market value gain or loss (realized or
unrealized) on securities held for trading, offset by the net market value
gain or loss (realized or unrealized) on interest rate contracts used for
hedging such securities. Management's goal is to attempt to offset any change
in the market value of its securities portfolio with the change in the market
value of the interest rate risk management contracts and mortgage-backed
derivative securities utilized by the Company to hedge its interest rate
exposure. In addition, management attempts to produce a positive hedged
excess return (i.e. total return, which includes interest income plus
realized and unrealized net gains/losses on investments minus the one month
LIBOR funding cost for the period) on the investment portfolio using
option-adjusted pricing analysis.
During the three and nine months ended March 31, 1997, the Company
recognized $6.0 million and $995,000 of realized net gains on the sale of
securities held for trading which were partially offset by $5.4 million and
$624,000 of unrealized net losses on securities held for trading (which
includes interest rate contracts used for hedging purposes). During the three
and nine months ended March 31, 1996, the Company recognized $5.1 million and
$2.5 million of realized net gains on the sale of securities held for trading
which were partially offset by $4.5 million and $2.0 million of unrealized
net losses on securities held for trading.
8
OTHER EXPENSE. Total other expense amounted to $1.2 million and $4.2
million during the three and nine months ended March 31, 1997, as compared to
$1.0 million and $2.8 million during the respective periods in the prior
year. The increase in total other expense during the three and nine month
periods reflected increases in salaries and other operating expenses, which
were primarily the result of the Company's retail growth (including the
opening of a new branch office in Fishers, Indiana in December 1995). In
addition to increases in expenses primarily related to retail growth, total
other expense for the nine months ended March 31, 1997 included the special
SAIF assessment of $830,000 which accounts for 57.7% of the increase in
expenses from the comparative nine month period in 1996.
INCOME TAX PROVISION. The Company incurred income tax expense of
$534,000 and $988,000 during the three and nine months ended March 31, 1997,
as compared to $293,000 and $542,000 during the respective periods in the
prior year. The Company's effective tax rate amounted to 39.0% and 38.8%
during the three and nine months ended March 31, 1997, as compared to 32.6%
and 32.0% during the respective periods in the prior year.
LIQUIDITY AND CAPITAL RESOURCES
The Bank is required under applicable federal regulations to maintain
specified levels of "liquid" investments in qualifying types of U.S.
Government and government agency obligations and other similar investments
having maturities of five years or less. Such investments are intended to
provide a source of relatively liquid funds upon which the Bank may rely if
necessary to fund deposit withdrawals and for other short-term funding needs.
The required level of such liquid investments is currently 5% of certain
liabilities as defined by the Office of Thrift Supervision ("OTS"). The
regulatory liquidity of the Bank was 5.19% at March 31, 1997, as compared to
5.53% and 5.36% at June 30, 1996 and 1995, respectively. At March 31, 1997,
the Bank's average "liquid" assets totalled approximately $22.7 million,
which was $851,000 in excess of the current OTS minimum requirement.
The Company manages its liquidity so as to maintain a minimum regulatory
ratio of 5%. However, as a result of the Company's active portfolio
management, the Bank's regulatory liquidity can be expected to fluctuate from
a minimum of 5% to approximately 6%, based upon investment alternatives
available and market conditions. In addition, the Company also calculates the
amount of cash which could be raised in one, seven or thirty days, either by
selling unpledged assets or by borrowing against them. The ratio of this
amount of liquidity to total deposits generally ranges from over 50% to 90%
or more for one- and thirty-day time frames, respectively. At March 31, 1997,
the Company's total approved originated loan commitments outstanding amounted
to $292,000 and the unused lines of credit outstanding totalled $1.1 million.
At the same date, commitments outstanding to purchase investment securities
and loans were $94.0 million and $7.1 million respectively, offset by $112.0
million of commitments to sell investment securities. Certificates of deposit
scheduled to mature in one year or less at March 31, 1997 totalled $65.2
million. The Company believes that it has adequate resources to fund ongoing
commitments such as investment security and loan purchases as well as deposit
account withdrawals and loan commitments.
9
HARRINGTON FINANCIAL GROUP, INC. AND SUBSIDIARY
PART II
Item 1. Legal Proceedings
Neither the Company 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
a) Exhibit 11: Statement of Computation of Per Share Earnings.
The copy of this exhibit, filed as Exhibit 11 to the Company's
Annual Report on Form 10-K for the year ended June 30, 1996,
is incorporated herein by reference.
b) Exhibit 27: Financial Data Schedule
c) No Form 8-K reports were filed during the quarter.
10
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.
HARRINGTON FINANCIAL GROUP, INC.
DATE: MAY 9, 1997 BY: /S/ CRAIG J. CERNY
--------------------------------
CRAIG J. CERNY
PRESIDENT
DATE: MAY 9, 1997 BY: /S/ CATHERINE A. HABSCHMIDT
---------------------------------
CATHERINE A. HABSCHMIDT
CHIEF FINANCIAL OFFICER AND TREASURER