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 September 30, 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 East Main
Richmond, Indiana 47374
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(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 November 7,
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
Page
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Part I. Financial Information
Item 1. Financial Statements
Consolidated Balance Sheets as of September 30, 1997
(unaudited) and June 30, 1997 1
Consolidated Statements of Income (unaudited) for the three
months ended September 30, 1997 and 1996. 2
Consolidated Statements of Cash Flows (unaudited) for the three
months ended September 30, 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
Item 3. Quantitative and Qualitative Disclosures About Market Risk 10
Part II. Other Information
Item 1. Legal Proceedings 11
Item 2. Changes in Securities 11
Item 3. Defaults Upon Senior Securities 11
Item 4. Submission of Matters to a Vote of Security-Holders 11
Item 5. Other Information 11
Item 6. Exhibits and Reports on Form 8-K 11
Signatures
HARRINGTON FINANCIAL GROUP, INC. AND SUBSIDIARY
Consolidated Balance Sheets
(Dollars in Thousands)
(Unaudited)
September 30, June 30,
1997 1997
--------- ---------
ASSETS
Cash $ 1,271 $ 1,207
Interest-bearing deposits 10,624 8,309
--------- ---------
Total cash and cash equivalents 11,895 9,516
Securities held for trading - at fair value
(amortized cost of $392,094 and $314,953) 394,819 317,355
Securities available for sale - at fair value
(amortized cost of $1,080 and $1,183) 1,036 1,125
Due from brokers -- 11,308
Loans receivable, net 99,597 93,958
Interest receivable, net 2,245 2,080
Premises and equipment, net 4,526 4,424
Federal Home Loan Bank of Indianapolis stock 4,852 4,852
Other 2,073 2,179
--------- ---------
Total assets $ 521,043 $ 446,797
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits $ 138,921 $ 136,175
Securities sold under agreements to repurchase 316,245 245,571
Federal Home Loan Bank advances 26,000 26,000
Interest payable on securities sold under agreements to
repurchase 250 300
Other interest payable 1,579 787
Note payable 9,995 9,995
Advance payments by borrowers for taxes & insurance 795 585
Deferred income taxes, net 1,218 1,249
Accrued income taxes payable 236 --
Deferred compensation payable 82 89
Accrued expenses payable and other liabilities 500 1,052
--------- ---------
Total liabilities 495,821 421,803
--------- ---------
Common stock 407 407
Additional paid-in-capital 15,623 15,623
Unrealized loss on securities available for sale, net of tax (27) (35)
Retained earnings 9,219 8,999
--------- ---------
Total stockholders' equity 25,222 24,994
--------- ---------
Total liabilities and stockholders' equity $ 521,043 $ 446,797
========= =========
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
September 30,
---------------------
1997 1996
------- -------
INTEREST INCOME
Securities held for trading $ 6,077 $ 6,986
Securities available for sale 25 41
Loans receivable 1,824 1,306
Dividends on Federal Home Loan Bank stock 101 52
Deposits 309 259
Net interest expense on interest rate contracts
maintained in the trading portfolio (199) (70)
------- -------
Interest income 8,137 8,574
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INTEREST EXPENSE
Deposits 1,908 1,840
Federal Home Loan Bank advances 422 411
Short-term borrowings 4,004 4,032
Long-term borrowings 218 211
------- -------
Interest expense 6,552 6,494
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NET INTEREST INCOME 1,585 2,080
PROVISION FOR LOAN LOSSES -- --
------- -------
NET INTEREST INCOME AFTER PROVISION
FOR LOAN LOSSES 1,585 2,080
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OTHER INCOME
Loss on sale of securities held for trading (198) (1,835)
Unrealized gain on securities held for trading 323 1,885
Other 68 58
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Total other income 193 108
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OTHER EXPENSE
Salaries and employee benefits 649 516
Premises and equipment expense 152 121
FDIC insurance premiums 21 74
Special SAIF assessment -- 830
Marketing 24 20
Computer services 47 38
Consulting fees 70 70
Other 294 329
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Total other expenses 1,257 1,998
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INCOME BEFORE INCOME TAX PROVISION 521 190
INCOME TAX PROVISION 204 69
------- -------
NET INCOME $ 317 $ 121
======= =======
NET INCOME PER SHARE $ 0.10 $ 0.04
======= =======
See notes to unaudited consolidated financial statements.
2
HARRINGTON FINANCIAL GROUP, INC. AND SUBSIDIARY
Consolidated Statements of Cash Flows
(Dollars in Thousands)
(Unaudited)
Three Months Ended
September 30,
--------------------------
1997 1996
--------- ---------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 317 $ 121
Adjustments to reconcile net income to net cash used
in operating activities:
Depreciation 69 55
Premium and discount amortization of securities, net 333 420
Amortization of premiums and discounts on loans 15 2
Loss on sale of securities held for trading 198 1,835
Unrealized gain on securities held for trading (323) (1,885)
Deferred income tax provision (31) 64
Increase in interest receivable (165) (399)
Increase (decrease) in interest payable 742 (160)
Increase (decrease) in accrued income taxes 236 (100)
Purchases of securities held for trading (277,950) (275,086)
Decrease in amounts due from brokers 11,308 --
Proceeds from maturities of securities held for trading 6,306 7,838
Proceeds from sales of securities held for trading 193,973 147,786
(Increase) decrease in other assets 106 (76)
Increase (decrease) in accrued expenses and other liabilities (349) 543
--------- ---------
Net cash used in operating activities (65,215) (119,042)
--------- ---------
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from maturities of securities available for sale 97 622
Change in loans receivable, net (5,654) (3,364)
Purchases of premises and equipment (171) (7)
--------- ---------
Net cash used in investing activities (5,728) (2,749)
--------- ---------
CASH FLOWS FROM FINANCING ACTIVITIES:
Net increase (decrease) in deposits 2,746 (3,895)
Increase in securities sold under agreements to repurchase 70,674 118,614
Proceeds from note payable -- 1,500
Principal repayments on note payable -- (299)
Dividends paid on common stock (98) --
--------- ---------
Net cash provided by financing activities 73,322 115,920
--------- ---------
NET INCREASE (DECREASE) IN CASH AND
EQUIVALENTS 2,379 (5,871)
CASH AND CASH EQUIVALENTS
Beginning of period 9,516 17,143
--------- ---------
CASH AND CASH EQUIVALENTS
End of period $ 11,895 $ 11,272
========= =========
SUPPLEMENTAL DISCLOSURES OF CASH FLOW
INFORMATION:
Cash paid for interest $ 7,263 $ 6,305
Cash paid for income taxes -- 100
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 three full-service branch offices located in Carmel, Fishers
and Noblesville, Indiana, suburbs of Indianapolis. In December 1997, a
new full-service branch office is expected to open in Geist, 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 months ended September 30, 1997
are not necessarily indicative of the results to be expected for the
year ending June 30, 1998. 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, 1997. Reclassifications of certain prior period amounts have been
made to conform with the September 30, 1997 presentation.
Note 3 - Recent Accounting Pronouncements
Statement of Financial Accounting Standards (SFAS) No. 125, Accounting
for Transfers and Servicing of Financial Assets and Extinguishments of
Liabilities, was issued in June 1996 and provides accounting and
reporting standards for transfers and servicing of financial assets and
extinguishments of liabilities. SFAS No. 125 was amended by SFAS No.
127, Deferral of the Effective Date of Certain Provisions of SFAS No.
125. SFAS No. 127 defers certain provisions of SFAS No. 125 relating to
repurchase agreements, dollar- roll, securities lending, and similar
transactions and is effective for transactions occurring after December
31, 1997. Management has not quantified the effect, if any, of this new
standard on the consolidated financial statements.
SFAS No. 128, "Earnings per Share," applies to financial statements for
public companies for both interim and annual periods ending after
December 15, 1997. This statement establishes new accounting standards
for the calculation of basic earnings per share as
4
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.
In June 1997, SFAS No. 130, Comprehensive Income, was issued and becomes
effective for fiscal years beginning after December 15, 1997 and
requires reclassification of earlier financial statements for
comparative purposes. SFAS No. 130 requires that changes in the amounts
of certain items, including foreign currency translation adjustments and
gains and losses on certain securities, be shown in the financial
statements. SFAS No. 130 does not require a specific format for the
financial statement in which comprehensive income is reported, but does
require that an amount representing total comprehensive income be
reported in that statement. Management has not yet determined the
effect, if any, of SFAS No. 130 on the consolidated financial
statements.
Also in June 1997, SFAS No. 131, Disclosures about Segments of an
Enterprise and Related Information, was issued. This Statement will
change the way public companies report information about segments of
their business in their annual financial statements and requires them to
report selected segment information in their quarterly reports issued to
shareholders. It also requires entity-wide disclosures about the
products and services an entity provides, the material countries in
which it holds assets and reports revenues, and its major customers.
SFAS No. 131 is effective for fiscal years beginning after December 15,
1997. Management has not yet determined the effect, if any, of SFAS No.
131 on the consolidated financial statements.
The Financial Accounting Standards Board issued Exposure Draft,
Accounting for Derivative and Similar Financial Instruments and for
Hedging Activities, in June 1996. Management has not yet quantified the
effect, if any, of this Exposure Draft on the consolidated financial
statements.
5
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Financial Condition
At September 30, 1997, the Company's total assets amounted to $521.0
million, as compared to $446.8 million at June 30, 1997. The $74.2 million or
16.6% increase in total assets during the three months ended September 30, 1997
was primarily the result of a $77.5 million increase in securities held for
trading, a $5.6 million increase in net loans receivable and a $2.4 million
increase in cash and cash equivalents which was partially offset by a $11.3
million decrease in receivables from brokers. The increase in securities held
for trading was a result of further utilization of the Company's capital. 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 decrease in receivables from brokers was due to a
decrease in the amount of unsettled sales of investment securities. The increase
in the Company's assets from June 30, 1997 to September 30, 1997 was funded
primarily by a $70.7 million or 28.8% increase in securities sold under
agreements to repurchase.
At September 30, 1997, the Company's stockholders' equity amounted to
$25.2 million, as compared to $25.0 million at June 30, 1997. The 0.9% increase
in stockholders' equity was primarily due to the $317,000 of net income
recognized during the three month period which was partially offset by the $0.03
per share dividend to stockholders paid on August 29, 1997 totalling $98,000. At
September 30, 1997, the Bank's tangible and core capital amounted to $31.5
million or 6.1% of adjusted total assets, which exceeded the minimum 1.5% and
3.0% requirements by $23.7 million and $16.0 million, respectively.
Additionally, as of such date, the Bank's risk-based capital totalled $31.7
million or 31.3% of total risk-adjusted assets, which exceeded the minimum 8.0%
requirement by $23.6 million.
Results of Operations
General. The Company reported earnings of $317,000 or $0.10 per share
during the three months ended September 30, 1997, as compared to $644,000 or
$0.20 per share during the three months ended September 30, 1996 before the
one-time special assessment of $830,000 to recapitalize the Savings Association
Insurance Fund (SAIF) and $121,000 or $0.04 per share after the special SAIF
assessment. The $327,000 or 50.8% decrease in earnings, as compared to the same
period in the prior year before the effect of the SAIF assessment, was primarily
due to a $495,000 decrease in net interest income and an $89,000 increase in
operating expenses, which were partially offset by a $75,000 increase in
realized and unrealized net gains on securities held for trading and a $172,000
decrease in the Company's income tax provision.
The Bank's deposits are insured by the SAIF, which was 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 had been paying
6
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, recapitalized the SAIF by a one-time charge of $0.657 for each $100 of
assessable deposits held at March 31, 1995. This resulted in expense of $830,000
recognized in the Company's earnings for the three months ended September 30,
1996. 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.
Selected Financial Ratios. The following schedule shows selected
financial ratios for the three months ended September 30, 1997 and 1996.
At or for the Three
Months Ended
September 30,
--------------------
1997 1996
---- ----
Return on average assets .26% .10%
Return on average assets, excluding special
SAIF assessment .26 .52
Return on average equity 5.07 2.06
Return on average equity, excluding special
SAIF assessment 5.07 10.99
Interest rate spread (1) 1.13 1.48
Net interest margin (2) 1.32 1.70
Operating expenses to average assets 1.02 1.61
Operating expenses to average assets,
excluding special SAIF assessment 1.02 .94
Efficiency ratio (3) 76.04 93.41
Efficiency ratio (3), excluding special SAIF
assessment 76.04 54.58
Non-performing assets to total assets .20 .23
Loan loss reserves to non-performing loans 60.57 46.15
- ---------------
(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.
Net Interest Income. Net interest income decreased by $495,000 or 23.8%
during the three months ended September 30, 1997, as compared to the same period
in the prior year. This decrease was primarily due to a 35 basis point decline
in the Company's interest rate spread. The decline in the Company's interest
rate spread for the three months ended September 30, 1997 was primarily due to
the shifting of the investment portfolio to GNMA adjustable rate mortgages with
low initial rates and accounting yields but which, in the opinion of management,
had higher option adjusted spreads at purchase than other high credit quality
7
mortgage backed securities. These purchases were funded primarily through
reverse repurchase agreements.
Other Income. Total other income amounted to $193,000 during the three
months ended September 30, 1997, as compared to $108,000 during the respective
period 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 and hedges minus the one
month LIBOR funding cost for the period) on the investment portfolio using
option-adjusted pricing analysis.
During the three months ended September 30, 1997, the Company recognized
$323,000 of unrealized net gains on the sale of securities held for trading
which were partially offset by $198,000 of realized net losses on securities
held for trading (which includes interest rate contracts used for hedging
purposes). During the three months ended September 30, 1996, the Company
recognized $1.9 million of unrealized net gains on the sale of securities held
for trading which were partially offset by $1.8 million of realized net losses
on securities held for trading.
Other Expense. Total other expense amounted to $1.3 million during the
three months ended September 30, 1997, as compared to $1.2 million during the
respective period in the prior year before the one-time SAIF assessment. Total
other expense amounted to $2.0 million during the three months ended September
30, 1996 after the SAIF assessment of $830,000. The increase in other expense
during the 1997 quarter, excluding the special SAIF assessment, was due to
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 Noblesville, Indiana in June 1997).
Income Tax Provision. The Company incurred income tax expense of
$204,000 during the three months ended September 30, 1997, as compared to
$69,000 during the respective period in the prior year. The Company's effective
tax rate amounted to 39.2% during the three months ended September 30, 1997, as
compared to 36.3% during the respective period in the prior year.
8
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 5.10% at September 30, 1997, as compared to 5.25% and 5.53% at June
30, 1997 and 1996, respectively. At September 30, 1997, the Bank's average
"liquid" assets totalled approximately $23.2 million, which was $458,000 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 September 30, 1997, the Company's total approved
originated loan commitments outstanding amounted to $233,000 and the unused
lines of credit outstanding totalled $1.7 million. At the same date, commitments
outstanding to purchase investment securities and loans were $32.2 million and
$7.9 million, respectively, offset by $44.9 million of commitments to sell
investment securities. Certificates of deposit scheduled to mature in one year
or less at September 30, 1997 totalled $74.5 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
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of
1995
In addition to historical information, forward-looking statements are
contained herein that are subject to risks and uncertainties that could cause
actual results to differ materially from those reflected in the forward-looking
statements. Factors that could cause future results to vary from current
expectations, include, but are not limited to, the impact of economic conditions
(both generally and more specifically in the markets in which the Company
operates), the impact of competition for the Company's customers from other
providers of financial services, the impact of government legislation and
regulation (which changes from time to time and over which the Company has no
control), and other risks detailed in this Form 10-Q and in the Company's other
Securities and Exchange Commission (SEC) filings. Readers are cautioned not to
place undue reliance on these forward-looking statements, which reflect
management's analysis only as of the date hereof. The Company undertakes no
obligation to publicly revise these forward-looking statements, to reflect
events or circumstances that arise after the date hereof. Readers should
carefully review the risk factors described in other documents the Company files
from time to time with the SEC.
QUANTITATIVE AND QUALITATIVE DISCLOSURES
ABOUT MARKET RISK
The Office of Thrift Supervision (OTS) requires each thrift institution
to calculate the estimated change in the institution's market value of portfolio
equity (MVPE) assuming an instantaneous, parallel shift in the Treasury yield
curve of 100 to 400 basis points either up or down in 100 basis point
increments. MVPE is defined as the net present value of an institution's
existing assets, liabilities and off-balance sheet instruments. The OTS permits
institutions to perform this MVPE analysis using their own internal model based
upon reasonable assumptions. The Company has contracted with Smith Breeden
Associates, Inc. for the provision of consulting services regarding, among other
things, the management of its investments and borrowings, the pricing of loans
and deposits, the use of various financial instruments to reduce interest rate
risk and assistance in performing the required calculation of the sensitivity of
its market value to changes in interest rates. In estimating the market value of
mortgage loans and mortgage-backed securities, the Company utilizes various
prepayment assumptions which vary, in accordance with historical experience,
based upon the term, interest rate and other factors with respect to the
underlying loans.
Using the internal market value calculations, the Company has determined
that, as of September 30, 1997, there has been no material change in prepayment
assumptions or the estimated sensitivity of the Bank's MVPE to parallel yield
curve shifts in comparison to the disclosures set forth in the Company's 1997
annual report to stockholders.
10
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 3.1: Amended and Restated Articles of
Incorporation of Harrington Financial Group, Inc. This
exhibit is incorporated herein by reference from the
Registration Statement on Form S-1 (Registration No.
333-1556) filed by the Company with the SEC on February
20, 1996, as amended.
b) Exhibit 3.2: Amended and Restated Bylaws of Harrington
Financial Group, Inc. This exhibit is incorporated herein
by reference from the Registration Statement on Form S-1
(Registration No. 333-1556) filed by the Company with the
SEC on February 20, 1996, as amended.
11
c) 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, 1997, is incorporated herein by reference.
d) Exhibit 27: Financial Data Schedule
e) Form 8-K Report
The Company filed a Form 8-K Current Report dated August
7, 1997 (Item 5) which reported the announcement of the
approval to repurchase of up to 162,000 shares, or five
percent, of the Company's issued and outstanding stock.
12
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: November 7, 1997 By: /s/ Craig J. Cerny
------------------
Craig J. Cerny
President
Date: November 7, 1997 By: /s/ Catherine A. Habschmidt
---------------------------
Catherine A. Habschmidt
Chief Financial Officer and
Treasurer