U.S. SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 __________________________ FORM 10-QSB [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 1998 [ ] 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 0-24935 _______ SERVICE BANCORP, INC. ____________________ (Exact name of Registrant as specified in its Charter) Massachusetts 04-3430806 ________________________________ ______________________________ (State or other jurisdiction of incorporation (I.R.S. Employer Identification or organization) Number) 81 Main Street, Medway, Massachusetts 02053 _____________________________________ _______ (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (508) 533-3100 _______________ 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 _____ _____ As of September 30, 1998, there were no shares of the Registrant's common stock, par value $0.01 per share, outstanding. Part I. _______ FINANCIAL INFORMATION Service Bancorp, Inc. (the "Registrant") was formed to serve as the stock holding company for Summit Bank (the "Bank") pursuant to the Bank's two-tier mutual holding company reorganization. As of September 30, 1998, the Bank had not completed its Reorganization, and, accordingly, the Registrant had no assets or liabilities. However, attached as Exhibit 99.1 is selected consolidated financial data for the Bank. 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 ________________________________ 27 Financial Data Schedule 99.1 Selected Financial Data of Summit Bank No reports on Form 8-K were filed during the quarter ended September 30, 1998. 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. SERVICE BANCORP, INC. Date: November 9, 1998 \s\ Eugene G. Stone ____________________________________ Eugene G. Stone (President and Chief Executive Officer) Date: November 9, 1998 \s\ Warren W. Chase, Jr. ____________________________________ Warren W. Chase, Jr. (Vice President and Treasurer) EXHIBIT 99.1 SUMMIT BANK AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In thousands) (Unaudited) ASSETS September 30, June 30, 1998 1998 ____________ ________ Cash and due from banks $ 4,251 $ 4,452 Short-term investments 17,852 11,931 Total cash and cash equivalents 22,103 16,383 Certificates of deposit 1,500 1,500 Securities available for sale 45,357 40,171 Loans 75,039 77,312 Less allowance for loan losses (598) (577) ____________ __________ Loans, net 74,441 76,735 ============ ========== Banking premises and equipment, net 1,498 1,455 Federal Home Loan Bank Stock, at cost 731 731 Accrued interest receivable 1,078 1,173 Other assets 736 804 ___________ ____________ Total Assets $ 147,444 $ 138,952 =========== ============ LIABILITIES AND RETAINED EARNINGS Deposits $ 121,601 $ 112,247 Federal Home Loan Bank advances 14,419 14,562 Due to broker 1,053 Other Liabilities 857 967 __________ ___________ Total Liabilities 136,877 128,829 ========== =========== Retained earnings 9,924 9,700 Net unrealized gain on securities for sale, net of tax effects 643 423 __________ ___________ Total Retained Earnings 10,567 10,123 __________ ___________ Total Liabilities and Retained Earnings $ 147,444 $ 138,952 ========== =========== SUMMIT BANK AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (In thousands) (Unaudited) Three Months Ended September 30, 1998 1997 ________ _______ Interest and dividend income: Interest and fees on loans $ 1,637 $ 1,486 Interest and dividends on securities available for sale and Federal Home Loan Bank stock 653 435 Interest on short-term investments and certificates of deposit 143 99 _______ _______ Total interest and dividend income 2,433 2,020 _______ _______ Interest expense: Interest on deposits 1,015 887 Interest on borrowings 194 41 ______ ______ Total interest expense 1,209 928 ______ ______ Net interest income 1,224 1,092 Provision for loan losses 25 -- ______ ______ Net interest income, after provision for loan losses 1,199 1,092 ______ ______ Other income: Customer service fees 123 88 Gain on sales of securities available for sale, net 73 283 Gain on sales of loan 17 12 Miscellaneous 9 13 ______ _______ Total other income 222 396 ______ _______ Operating expenses: Salaries and employee benefits 562 436 Occupancy and equipment expenses 242 199 Data processing expenses 76 72 Professional fees 41 18 Advertising expenses 33 22 Other general and administrative expenses 125 85 ______ _______ Total operating expenses 1,079 832 ______ _______ Income before income taxes 342 656 Provision for income taxes 118 225 ______ _______ Net income $ 224 $ 431 ====== ======= SUMMIT BANK AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In thousands) CONSOLIDATED STATEMENTS OF CHANGES IN RETAINED EARNINGS For the three months ended September 30, 1998 (In thousands) (Unaudited) Accumulated Other Comprehensive Retained Comprehensive Income Earnings Income Total ___________ ________ ___________ _________ Balance at June 30, 1998 $ 0 $ 9,700 $ 423 $ 10,123 Comprehensive income: Net income 224 224 -- 224 Change in net unrealized gain on securities available for sale, after tax effects and reclassification adjustment 220 -- 220 220 ___________ _________ ___________ _________ Comprehensive Income $ 444 Balance at September 30, 1998 $ 9,924 $ 643 $ 10,567 ========= =========== ========= Balance at June 30, 1997 $ -- $ 8,499 $ 196 $ 8,695 Comprehensive Income: Net income 431 431 -- 431 Change in net unrealized gain on securities available for sale, after tax effects and reclassification adjustment 62 -- 62 220 ___________ _________ ___________ _________ Comprehensive Income $ 493 Balance at September 30, 1998 $ 8,930 $ 258 $ 9,188 ========= =========== =========