IROQUOIS BANCORP, INC.
401(K) SAVINGS PLAN
Financial Statements and Schedules
December 31, 1997 and 1996
(With Independent Auditors' Report Thereon)
IROQUOIS BANCORP, INC.
401(K) SAVINGS PLAN
Table of Contents
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Page
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Independent Auditors' Report 1
Financial statements for the years ended December 31, 1997 and 1996:
Statements of Net Assets Available for Plan Benefits at
December 31, 1997 and 1996, with Fund Information 2-3
Statements of Changes in Net Assets Available for Plan
Benefits for the Years Ended December 31, 1997 and 1996,
with Fund Information 4-5
Notes to financial statements 6-11
Supplemental schedules as of and for the year ended December 31, 1997:
Item 27a Schedule of Assets Held for Investment Purposes - Income Fund 12
Item 27a Schedule of Assets Held for Investment Purposes - Equity Fund 13
Item 27a Schedule of Assets Held for Investment Purposes - Balanced Fund 14
Item 27a Schedule of Assets Held for Investment Purposes - Common
Stock Fund 15
Item 27a Schedule of Assets Held for Investment Purposes - Employee
Loan Fund 16
Item 27d Schedule of Reportable (5%) Transactions 17
INDEPENDENT AUDITORS' REPORT
----------------------------
The Pension Plan Trustees of Iroquois Bancorp, Inc.
401(k) Savings Plan:
We have audited the accompanying statements of net assets available for plan
benefits, with Fund information of Iroquois Bancorp, Inc. 401(k) Savings Plan as
of December 31, 1997 and 1996, and the related statements of changes in net
assets available for plan benefits, with fund information for the years then
ended. These financial statements are the responsibility of the Plan's
management. Our responsibility is to express an opinion on these financial
statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the net assets available for plan benefits of Iroquois
Bancorp, Inc. 401(k) Savings Plan as of December 31, 1997 and 1996, and the
changes in net assets available for plan benefits for the years then ended in
conformity with generally accepted accounting principles.
Our audits were made for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental schedules, as listed in
the accompanying index, are presented for the purpose of additional analysis and
are not a required part of the basic financial statements but are supplementary
information required by the Department of Labor's Rules and Regulations for
Reporting and Disclosure under the Employee Retirement Income Security Act of
1974. The fund information in the statements of net assets available for
benefits and the statements of changes in net assets available for benefits is
presented for purposes of additional analysis rather than to present the net
assets available for plan benefits and changes in net assets available for plan
benefits of each fund. The supplemental schedules and fund information have
been subjected to the auditing procedures applied in the audit of the basic
financial statements and, in our opinion, are fairly stated in all material
respects in relation to the basic financial statements taken as a whole.
KPMG PEAT MARWICK LLP
Syracuse, New York
March 3, 1998
IROQUOIS BANCORP, INC.
401(K) SAVINGS PLAN
Statement of Net Assets Available for Plan Benefits, with Fund Information
December 31, 1997
Common Employee
Income Equity Balanced Stock Loan
Assets Fund Fund Fund Fund Fund Total
------ -------- ------ -------- ----- -------- -----
Investments, at fair value:
Cash $ -- -- 300 -- -- 300
Money market funds -- 53,448 38,730 17 -- 92,195
U.S. Government securities -- -- 120,881 -- -- 120,881
Corporate bonds 350,206 -- 80,874 -- -- 431,080
Common stocks -- 1,172,424 214,155 2,949,044 -- 4,335,623
Preferred stock 10,600 -- -- -- -- 10,600
Employees' loans -- -- -- -- 186,187 186,187
------- --------- ------- --------- ------- ---------
360,806 1,225,872 454,940 2,949,061 186,187 5,176,866
------- --------- ------- --------- ------- ---------
Receivables:
Accrued interest and
dividends -- 1,955 4,383 19 -- 6,357
Due from employees 5,598 18,538 9,569 4,062 -- 37,767
Due from employer -- -- -- 10,340 -- 10,340
------- --------- ------- --------- ------- ---------
5,598 20,493 13,952 14,421 -- 54,464
------- --------- ------- --------- ------- ---------
Net assets available for plan benefits $366,404 1,246,365 468,892 2,963,482 186,187 5,231,330
======= ========= ======= ========= ======= =========
See accompanying notes to financial statements.
-2-
IROQUOIS BANCORP, INC.
401(K) SAVINGS PLAN
Statement of Net Assets Available for Plan Benefits, with Fund Information
December 31, 1996
Common Employee
Income Equity Balanced Stock Loan
Assets Fund Fund Fund Fund Fund Total
------ -------- ------- -------- --------- -------- -------
Investments, at fair value:
Cash $ -- -- 300 -- -- 300
Money market funds 17,863 87,563 55,104 23,428 -- 183,958
U.S. Government securities -- -- 108,836 -- -- 108,836
Corporate bonds 324,457 -- 44,362 -- -- 368,819
Contracts with insurance companies 19,441 -- -- -- -- 19,441
Common stocks -- 841,613 176,856 1,979,140 -- 2,997,609
Preferred stock 10,600 -- -- -- -- 10,600
Employees' loans -- -- -- -- 204,552 204,552
------- ------- ------- --------- ------- ---------
372,361 929,176 385,458 2,002,568 204,552 3,894,115
------- ------- ------- --------- ------- ---------
Receivables:
Accrued interest and
dividends 268 2,098 3,431 55 -- 5,852
Net assets available for plan benefits $372,629 931,274 388,889 2,002,623 204,552 3,899,967
======= ======= ======= ========= ======= =========
See accompanying notes to financial statements.
-3-
IROQUOIS BANCORP, INC.
401(K) SAVINGS PLAN
Statement of Changes in Net Assets Available for Plan Benefits, with
Fund Information
Year ended December 31, 1997
Common Employee
Income Equity Balanced Stock Loan
Fund Fund Fund Fund Fund Total
--------- -------- ---------- -------- --------- ------
Investment income:
Dividends on Iroquois
Bancorp, Inc. common
stock $ -- -- -- 41,122 -- 41,122
Interest and dividends 1,000 24,576 19,434 420 14,499 59,929
Net appreciation in fair
value of investments 22,868 206,904 43,832 974,819 -- 1,248,423
------- ------- ------- --------- ------- ---------
23,868 231,480 63,266 1,016,361 14,499 1,349,474
------- ------- ------- --------- ------- ---------
Contributions:
Employees 38,018 149,766 69,876 42,490 -- 300,150
Employer -- -- -- 109,444 -- 109,444
------- ------- ------- --------- ------- ---------
38,018 149,766 69,876 151,934 -- 409,594
------- ------- ------- --------- ------- ---------
Total additions 61,886 381,246 133,142 1,168,295 14,499 1,759,068
------- ------- ------- --------- ------- ---------
Benefits paid to participants 56,560 107,126 40,535 195,134 -- 399,355
Administrative expenses 1,808 13,325 5,791 7,426 -- 28,350
------- ------- ------- --------- ------- ---------
Total deductions 58,368 120,451 46,326 202,560 -- 427,705
------- ------- ------- --------- ------- ---------
Transfers among funds (9,743) 54,296 (6,813) (4,876) (32,864) --
------- ------- ------- --------- ------- -------
Net increase(decrease) (6,225) 315,091 80,003 960,859 (18,365) 1,331,363
Net assets available for plan benefits:
Beginning of year 372,629 931,274 388,889 2,002,623 204,552 3,899,967
------- ------- ------- --------- ------- ---------
End of year $366,404 1,246,365 468,892 2,963,482 186,187 5,231,330
======= ========= ======= ========= ======= =========
See accompanying notes to financial statements.
-4-
IROQUOIS BANCORP, INC.
401(K) SAVINGS PLAN
Statement of Changes in Net Assets Available for Plan Benefits, with
Fund Information
Year ended December 31, 1996
Common Employee
Income Equity Balanced Stock Loan
Fund Fund Fund Fund Fund Total
--------- -------- ---------- ------- ---------- -------
Investment income:
Dividends on Iroquois
Bancorp, Inc. common
stock $ -- -- -- 37,765 -- 37,765
Interest and dividends 2,911 21,144 16,383 271 17,713 58,422
Net appreciation in fair
value of investments 23,853 155,362 30,446 459,858 -- 669,519
------- ------- ------- ------- ------ -------
26,764 176,506 46,829 497,894 17,713 765,706
------- ------- ------- ------- ------ -------
Contributions:
Employees 50,543 154,145 64,187 57,020 -- 325,895
Employer -- -- -- 126,309 -- 126,309
------- ------- ------- ------- ------ -------
50,543 154,145 64,187 183,329 -- 452,204
------- ------- ------- ------- ------ -------
Total additions 77,307 330,651 111,016 681,223 17,713 1,217,910
------- ------- ------- ------- ------ ---------
Benefits paid to participants 142,677 158,524 40,900 180,414 -- 522,515
Administrative expenses 2,828 11,353 5,543 7,020 -- 26,744
------- ------- ------- ------- ------ ---------
Total deductions 145,505 169,877 46,443 187,434 -- 549,259
------- ------- ------- ------- ------ ---------
Transfers among funds 4,649 33,453 6,847 (2,677) (42,272) --
------- ------- ------- ------- ------ -------
Net increase(decrease) (63,549) 194,227 71,420 491,112 (24,559) 668,651
Net assets available for plan benefits:
Beginning of year 436,178 737,047 317,469 1,511,511 229,111 3,231,316
------- ------- ------- --------- ------- ---------
End of year $372,629 931,274 388,889 2,002,623 204,552 3,899,967
======= ======= ======= ========= ======= =========
See accompanying notes to financial statements.
-5-
IROQUOIS BANCORP, INC.
401(K) SAVINGS PLAN
Notes to Financial Statements
December 31, 1997
(1) Description of the Plan
The following description of the Iroquois Bancorp, Inc. 401(K) Savings
Plan (Plan) is provided for general informational purposes only.
Participants should refer to the Plan agreement for more complete
information.
General
The Plan is a defined contribution plan sponsored by Iroquois Bancorp,
Inc. (the "Company") for the benefit of its employees and the employees
of its wholly owned subsidiaries, Cayuga Bank and The Homestead Savings
(FA). Employees may elect to participate in the Plan after completion
of 1,000 hours of service in a Plan year and attainment of age 21.
Participants may not be subject to the terms of a collective bargaining
agreement with the Company, or its subsidiaries.
Description of Funds
Participants elect to have their contributions allocated to any
combination of the Plan's funds. The following is a description of the
investment of each fund:
Income Fund - Contracts issued by insurance companies, Series
B preferred stock of the Company, money market and other fixed
income funds, interest- bearing savings accounts, term
accounts and certificates of deposit.
Equity Fund - Common stock, securities convertible into common
stock and money market funds.
Balanced Fund - Common stock, securities convertible into
common stock, bonds, notes, debentures, and money market
funds.
Common Stock Fund - Common stock of the Company and money
market funds or interest-bearing savings accounts.
Contributions
Contributions to the Plan are determined as follows:
(1) Employee contributions are 1% to 10% of the participant's
compensation, as defined, and are subject to IRS limitations
for any Plan year.
(2) Employer matching contributions are equal to 50% of employee
contributions for any Plan year up to 6% of compensation, as
defined. The Company may also contribute to the Plan a
discretionary amount as determined by the Board of Directors.
The Company's contributions to the Plan must be allocated to
the common stock fund, the purpose of which is to acquire
common stock of the Company.
-6-
2
IROQUOIS BANCORP, INC.
401(K) SAVINGS PLAN
Notes to Financial Statements
(1) Description of the Plan (continued)
Participants' Accounts
An account is maintained for each participant. The fair value of each
participant's account is determined as of each valuation date. The
change in the fair value of each participant's account includes the
effect of employer and employee contributions, income collected or
accrued, realized and unrealized appreciation or depreciation of
assets, distributions, withdrawals, expenses, and all other
transactions affecting the assets.
Participants may elect to transfer their interest between funds in
multiples of 10% of either account balance or annual contributions.
Net investment income by fund is allocated to each participant's
account based on the proportion in which the value of each
participant's account bears to the total value of all participants'
accounts.
Participants who have attained age 59 1/2 may withdraw the portion of
their account attributed to employee contributions prior to normal
retirement (age 65).
Forfeitures are applied to the Company's matching and discretionary
contributions as a reduction of those contributions.
As of any valuation date, a participant with a hardship, as defined in
the Internal Revenue Code, may withdraw funds available for hardship
withdrawal.
Participants have the right to borrow from their accounts, amounts not
exceeding 50% of the participant's vested balance and not less than
$1,000. The interest rate charged on employee loans is based on the
prime rate at the time a loan is granted. Loans shall be for a period
of not less than one year and not more than five years. These loans are
subject to terms and conditions as set forth by the plan administrator.
Participant loans are treated as a transfer from the participant
directed accounts into the Loan Fund. Principal and interest payments
on the loans are allocated to the Loan Fund and transferred to the
participant directed accounts based on their current investment
allocations.
Vesting
Cumulative employer contributions and related income become vested at
the rate of 20% per year during the first five years of employment.
After five years of employment, employer contributions vest immediately
to the benefit of the employee. Upon attaining age 65, retirement,
death, full or partial Plan termination, or a change in control of the
Company, as defined, a participant becomes 100% vested in the portion
of their accounts attributable to employer contributions.
Payment of Benefits
Vested benefits are payable in a lump-sum payment.
Participants' Claims Upon Plan Termination
Although it has not expressed any intent to do so, the Company may
terminate the Plan, subject to the provisions of ERISA, at any time. In
the event the Plan is terminated, participants will become fully vested
in their asset accounts and their accounts will be paid to them as
provided by the Plan document.
-7-
3
IROQUOIS BANCORP, INC.
401(K) SAVINGS PLAN
Notes to Financial Statements
(2) Summary of Significant Accounting Policies
Basis of Presentation
The accompanying financial statements have been prepared on the accrual
basis of accounting, adjusted for fair value changes of assets.
Management of the Plan has made estimates and assumptions relating to
the reporting of net assets available for plan benefits to prepare the
financial statements.
Actual results could differ from those estimates.
Investment Valuation and Income Recognition
Marine Midland Bank, N.A. is Custodian and Trustee for the Plan. Clover
Capital Management, Inc. manages the equity and balanced funds and
Marine Midland Bank, N.A. manages the income, common stock and employee
loan funds.
The Plan's investments are stated at fair value. The fair values are
determined as follows:
Stocks and corporate bonds are valued at the closing prices on national
exchanges.
Investments in certificates of deposit, money market funds, savings
accounts and employee loans are stated at cost which approximates fair
value.
Investments in U.S. Government and U.S. Government Agency obligations
are stated at fair value based on quoted market prices.
Investment contracts with insurance companies are stated at the cost of
the underlying contract plus interest earned to date as reported to the
Plan, which approximates fair value.
Security transactions are accounted for on a trade date basis. Realized
gains and losses on securities are derived using the specific
identification method for determining the cost of securities.
Administrative Expenses
All normal expenses of operating and administering the Plan are paid by
the Plan except to the extent paid by the Company.
Federal Income Taxes
The Internal Revenue Service issued its latest determination letter on
November 3, 1993 which stated that the Plan and its underlying trust,
as designed, qualify under the applicable provisions of the Internal
Revenue Code. In the opinion of the plan administrator, the Plan and
its underlying trust have operated within the terms of the Plan and
remain qualified under the applicable provisions of the Internal
Revenue Code.
As long as the Plan continues to be qualified under present federal
income tax laws and regulations, participants will not be taxed on
Company contributions or on investment earnings on such contributions
at the time such contributions and investment earnings are received by
the Trustee, but may be subject to tax thereon at such time as they
receive distributions under the Plan.
-8-
4
IROQUOIS BANCORP, INC.
401(K) SAVINGS PLAN
Notes to Financial Statements
(3) Investments
The following table presents the fair value of investments. Investments
that represent 5 percent or more of the Plan's net assets available for
plan benefits are separately identified.
December 31, 1997
Number of
Shares or
Principal
Amount
---------- --------------------------------------------------------------------
Common Employee
Income Equity Balanced Stock Loan
Fund Fund Fund Fund Fund Total
--------------------------------------------------------------------
Investments at Fair Value
as Determined by Quoted
Market Price:
U.S. Government securities 111,721 -- -- 120,881 -- -- 120,881
Corporate bonds:
Marine Midland Collective Trust 16,881 350,206 -- -- -- -- 350,206
Other 80,000 -- -- 80,874 -- -- 80,874
Common stocks:
Iroquois Bancorp, Inc. 114,526 -- -- -- 2,949,044 -- 2,949,044
Other 59,291 -- 1,172,424 214,155 -- -- 1,386,579
Preferred stock 106 10,600 -- -- -- -- 10,600
------------------------------------------------------------------
360,806 1,172,424 415,910 2,949,044 -- 4,898,184
------------------------------------------------------------------
Investments valued at cost,
which approximates fair value:
Employee loans -- -- -- -- 186,187 186,187
Cash -- $ -- -- 300 -- -- 300
Money market funds 92,195 -- 53,448 38,730 17 -- 92,195
------------------------------------------------------------------
-- 53,448 39,030 17 186,187 278,682
$360,806 1,225,872 454,940 2,949,061 186,187 5,176,866
======= ========= ======= ========= ======= =========
-9-
5
IROQUOIS BANCORP, INC.
401(K) SAVINGS PLAN
Notes to Financial Statements
(3) Investments (continued)
December 31, 1996
Number of
Shares or
Principal
Amount
------------ ---------------------------------------------------------------
Common Employee
Income Equity Balanced Stock Loan
Fund Fund Fund Fund Fund Total
---------------------------------------------------------------
Investments at Fair Value
as Determined by Quoted
Market Price:
U.S. Government securities 103,207 -- -- 108,836 -- -- 108,836
Corporate bonds:
Marine Midland Collective Trust 16,684 324,457 -- -- -- -- 324,457
Other 45,000 -- -- 44,362 -- -- 44,362
Common stocks:
Iroquois Bancorp, Inc. 116,420 -- -- -- 1,979,140 -- 1,979,140
Other 46,106 -- 841,613 176,856 -- -- 1,018,469
Preferred stock 106 10,600 -- -- -- -- 10,600
---------------------------------------------------------------
335,057 841,613 330,054 1,979,140 -- 3,485,864
Investments valued at cost
plus interest earned which
approximates fair value:
Fixed rate interest contracts
(6.64% maturing December 31, 1996) 19,441 19,441 -- -- -- -- 19,441
Investments valued at cost,
which approximates fair value:
Employee loans -- -- -- -- 204,552 204,552
Cash -- $ -- -- 300 -- -- 300
Money market funds 183,958 17,863 87,563 55,104 23,428 -- 183,958
---------------------------------------------------------------
17,863 87,563 55,404 23,428 204,552 388,810
$372,361 929,176 385,458 2,002,568 204,552 3,894,115
===============================================================
-10-
6
IROQUOIS BANCORP, INC.
401(K) SAVINGS PLAN
Notes to Financial Statements
(3) Investments (continued)
The Plan's investments (including investments bought, sold, and held during the
year) appreciated in value by $1,248,423 and $669,519 during 1997 and 1996,
respectively, as follows:
Year ended December 31, 1997
Common Employee
Income Equity Balanced Stock Loan
Fund Fund Fund Fund Fund Total
--------- -------- --------- ------- -------- --------
U.S. Government securities $ -- -- 3,215 -- -- 3,215
Corporate bonds 22,868 -- 1,349 -- -- 24,217
Common stock -- 206,904 39,268 974,819 -- 1,220,991
----------------------------------------------------------------
$ 22,868 206,904 43,832 974,819 -- 1,248,423
=================================================================
Year ended December 31, 1996
Common Employee
Income Equity Balanced Stock Loan
Fund Fund Fund Fund Fund Total
--------- -------- --------- ------- -------- --------
U.S. Government securities $ -- -- (2,325) -- -- (2,325)
Corporate bonds 23,853 -- (635) -- -- 23,218
Common stock -- 155,362 33,406 459,858 -- 648,626
---------------------------------------------------------------
$ 23,853 155,362 30,446 459,858 -- 669,519
================================================================
-11-
Schedule 1
IROQUOIS BANCORP, INC.
401(K) SAVINGS PLAN
Item 27a - Schedule of Assets Held for Investment Purposes -
Income Fund
December 31, 1997
Number
of Shares
or Par Value Description Cost Fair Value
- ------------ ----------- ---- ----------
Corporate Bonds
---------------
16,881 * Marine Midland Collective Trust
Managed Guaranteed Investment Contract $296,210 $350,206
------- -------
Preferred Stock
106 * Iroquois Bancorp, Inc. - Series B 10,600 10,600
------ ------
$306,810 $360,806
------- -------
* Party in interest
-12-
Schedule 2
IROQUOIS BANCORP, INC.
401(K) SAVINGS PLAN
Item 27a - Schedule of Assets Held for Investment Purposes -
Equity Fund
December 31, 1997
Number
of Shares
or Par Value Description Cost Fair Value
- ------------ ----------- ---- ----------
Money Market Funds
------------------
53,448 Provident Institutional Funds $ 53,448 $ 53,448
------- -------
Common Stocks
-------------
3,800 Agrium Inc. 43,029 46,314
450 Arco Chem Co. 21,339 20,925
684 Ascent Entmt Group Inc. 5,863 7,097
750 Avnet Inc. 36,458 49,500
750 BCE Inc. 21,789 24,985
700 California Microwave Inc. 18,638 13,562
1,100 Canadian Natl Ry Co. 26,206 51,975
729 Chateau Cmntgs Inc. 15,951 22,964
3,300 Comcast Corp. Cl A 61,087 104,158
2,000 Comcast UK Cable Partners LTD Cl A 20,000 18,876
1,400 Comsat Corp. Ser 1 31,318 33,950
400 Crown Cork & Seal Inc. 22,295 20,050
500 Dow Jones & Co. Inc. 20,577 26,844
1,400 Echlin Inc. 45,565 50,663
3,000 Frontier Corp. 62,108 72,000
800 Harmon Intl Inds Inc. New 32,248 34,200
400 King World Productions Inc. 13,922 23,100
1,600 Komag Inc. 29,454 23,800
2,000 Kroger Co. 25,993 73,500
1,500 Mapics Inc. 12,691 16,313
750 Marcam Solutions Inc. 4,231 5,437
720 Meditrust 13,349 26,370
3,425 Medpartners Inc. New 57,353 76,634
700 Morton Intl Inc. Ind New 21,890 24,063
800 Occidental Pet. Corp. 20,452 23,450
1,300 Pall Corp. 33,228 26,894
600 Policy Mgmt Sys Corp. 18,291 41,738
1,000 RJR Nabisco Holdings Corp. New 33,362 37,500
900 Storage Tr Rlty Sh Ben Int 18,225 23,682
1,400 Sungard Data Sys Inc. 29,423 43,225
700 Ucar Intl Inc. 26,316 27,957
1,800 Union Tex Pete Holdings Inc. 34,065 37,463
6,500 United Biscuits Group 31,882 23,959
1,200 Wheelabrator Technologies Inc. 18,660 19,276
------- -------
927,258 1,172,424
------- ---------
$980,706 $1,225,872
======== ==========
-13-
Schedule 3
IROQUOIS BANCORP, INC.
401(K) SAVINGS PLAN
Item 27a - Schedule of Assets Held for Investment Purposes -
Balanced Fund
December 31, 1997
Number
of Shares
or Par Value Description Cost Fair Value
- ------------ ----------- ---- ----------
-- Cash $ 300 $ 300
---- ------ ------
Money Market Funds
------------------
38,730 Provident Institutional Funds 38,730 38,730
------ ------
U.S. Government Securities
--------------------------
10,000 U.S. Treasury Note 9.25% 8/15/98 10,103 10,217
20,000 U.S. Treasury Note 5.50% 4/15/00 19,954 19,919
10,000 U.S. Treasury Note 7.25% 8/15/04 10,483 10,808
15,000 U.S. Treasury Note 7.50% 2/15/05 15,293 16,486
10,000 U.S. Treasury Note 9.375% 2/15/06 10,557 12,295
25,000 U.S. Treasury Note 7.50% 11/15/16 26,109 29,180
15,000 FNMA Med Term Notes 6.48% 2/18/04 14,833 14,915
6,721 GNMA Gtd Pass thru Ctf Pool #212177 6,967 7,061
------- -------
114,299 120,881
Corporate Bonds
---------------
10,000 Abbott Labs NT 5.60% 10/01/03 9,323 9,754
15,000 Canandaigua Wine Inc. SR NT 8.75% 12/15/03 14,606 15,113
15,000 Meditrust NT 7.00% 8/15/07 14,854 15,214
15,000 Private Export Fdg Corp Secd NT
6.62% 10/01/05 15,578 15,518
15,000 Tenet Healthcare Corp SR NT 8.00% 1/15/05 15,081 15,263
10,000 Zeneca Wilmington Inc. GTD NT 6.30% 6/15/03 9,650 10,012
------- -------
79,092 80,874
Common Stocks
-------------
900 Agrium Inc. 10,191 10,969
195 Ascent Entmt Group Inc. 1,672 2,023
200 Avnet Inc. 9,722 13,200
300 California Microwave Inc. 7,987 5,813
312 Chateau Comntys Inc. 6,602 9,828
700 Comcast Corp. Cl A 13,194 22,094
400 Comsat Corp. Ser 1 8,948 9,700
300 Echlin Inc. 9,380 10,856
700 Frontier Corp. 13,629 16,800
200 Harman Intl Inds Inc. New 8,062 8,550
200 King World Productions Inc. 6,930 11,550
500 Komag Inc. 9,188 7,438
600 Kroger Co. 7,798 22,050
726 Medpartners Inc. New 11,436 16,244
400 Pall Corp. 10,224 8,275
300 RJR Nabisco Hldgs Corp. New 10,009 11,250
300 Storage Tr Rlty Sh Ben Int 6,590 7,894
500 Union Tex Pete Hldgs Inc. 9,461 10,406
2,500 United Biscuits Group 11,307 9,215
------- -------
172,330 214,155
------- -------
$404,751 $454,940
======== ========
-14-
Schedule 4
IROQUOIS BANCORP, INC.
401(K) SAVINGS PLAN
Item 27a - Schedule of Assets Held for Investment Purposes -
Common Stock Fund
December 31, 1997
Number
of Shares Description Cost Fair Value
- --------- ----------- ---- ----------
Money Market Funds
------------------
17 * Marine Midland Collective Trust $ 17 $ 17
Short Term Investment Fund
Common Stocks
-------------
114,526 * Iroquois Bancorp, Inc. 1,239,950 2,949,044
--------- ---------
$1,239,967 $2,949,061
========== ==========
* Party In Interest
-15-
Schedule 5
IROQUOIS BANCORP, INC.
401(K) SAVINGS PLAN
Item 27a - Schedule of Assets Held for Investment Purposes -
Employee Loan Fund
December 31, 1997
Par
Value Description Cost Fair Value
- ------- ----------- ---- ----------
Employees' Loans
----------------
186,187 Loans to Employees at various rates $186,187 $186,187
======== ========
ranging from 6.0% to 9.0% with
maturities ranging from 2 years to
5 years
-16-
Schedule 6
IROQUOIS BANCORP, INC.
401(K) SAVINGS PLAN
Item 27d - Schedule of Reportable (5%) Transactions
Year ended December 31, 1997
Value of
Asset on
Purchase Selling Expenses Transaction
Date Party/Description Price Price Incurred Cost Date Net Gain
- ---- ----------------- -------- ------- -------- ---- ----------- --------
Various Marine Midland Bank
Collective Trust
Short Term Investment Fund
Directed 592,685 -- -- 592,685 592,685 --
Various Marine Midland Bank
Collective Trust
Short Term Investment Fund
Directed -- 633,963 -- 633,963 633,963 --
Various Iroquois Bancorp, Inc.
Common Stock 288,452 -- -- 288,452 288,452 --
Various Iroquois Bancorp, Inc.
Common Stock -- 236,490 -- 112,718 112,718 123,772
Various Marine Midland Bank
Provident Institutional Funds 771,113 -- -- 771,113 771,113 --
Various Marine Midland Bank
Provident Institutional Funds -- 821,601 -- 821,601 821,601 --
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