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MLF BANCORP SAVINGS PLAN
FINANCIAL STATEMENTS AND SUPPLEMENTAL SCHEDULES
MARCH 31, 1996
(WITH INDEPENDENT AUDITORS' REPORT THEREON)
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MLF BANCORP SAVINGS PLAN
TABLE OF CONTENTS
MARCH 31, 1996
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Page
Independent Auditors' Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Financial Statements:
Statement of Net Assets Available for Plan Benefits,
March 31, 1996 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Statement of Changes in Net Assets Available for Plan Benefits, Year ended
March 31, 1996 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Notes to Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
SCHEDULE:
1 Item 27(a) - Assets Held for Investment Purposes . . . . . . . . . . . . . . 6
March 31, 1996
2 Item 27(d) - Reportable Transactions . . . . . . . . . . . . . . . . . . . . 7
Year ended March 31, 1996
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[KPMG PEAT MARWICK LLP LETTERHEAD]
INDEPENDENT AUDITOR'S REPORT
The Human Resources and Compensation Committee
of the MLF Bancorp Savings Plan:
We were engaged to audit the financial statements and supplemental schedules of
the MLF Bancorp Savings Plan (the Plan) as of March 31, 1996, and for the year
then ended as listed in the accompanying table of contents. These financial
statements and supplemental schedules are the responsibility of the Plan's
management.
As permitted by 29 CFR 2520.103-8 of the Department of Labor's Rules and
Regulations for Reporting and Disclosure under the Employee Retirement Income
Security Act of 1974, the plan administrator instructed us not to perform, and
we did not perform, any auditing procedures with respect to the investment
information, which was certified by CIGNA Retirement and Investment Services,
the trustee of the Plan, except for comparing such information with the related
information included in the financial statements and supplemental schedules.
We have been informed by the plan administrator that the trustee holds the
Plan's investment assets and executes investment transactions. The plan
administrator has obtained a certification from the trustee as of and for the
year ended March 31, 1996, that the information provided to the plan
administrator by the trustee is complete and accurate.
Because of the significance of the information that we did not audit, we are
unable to, and do not, express a opinion on the accompanying financial
statements and supplemental schedules taken as a whole. The form and content of
the information included in the financial statements and supplemental
schedules, other than that derived from the information certified by the
trustee, have been audited by us in accordance with generally accepted auditing
standards and, in our opinion, are presented in compliance with the Department
of Labor's Rules and Regulations for Reporting and Disclosure under the
Employee Retirement Income Security Act of 1974.
/s/ KPMG PEAT MARWICK LLP
December 20, 1996
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MLF BANCORP SAVINGS PLAN
Statement of Net Assets Available for Plan Benefits
March 31, 1996
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1996
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Guaranteed Fidelity Advisor Fidelity Advisor MLF Bancorp,
Long Term Income & Equity Inc. Common Participant
Fund Growth Fund Growth Fund Stock Loans Total
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Assets:
Investments, at fair value:
Unallocated insurance account $ 1,249,370 - - - - 1,249,370
Pooled separate account 343,296 340,361 - - 683,657
Common stock - - - 121,866 - 121,866
Participant loans - - - - 109,524 109,524
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Total investments 1,249,370 343,296 340,361 121,866 109,524 2,164,417
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Net assets available for plan
benefits $ 1,249,370 343,296 340,361 121,866 109,524 2,164,417
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See accompanying notes to financial statements.
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MLF BANCORP SAVINGS PLAN
Statement of Changes in Net Assets Available for Plan Benefits
Year ended March 31, 1996
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1996
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Guaranteed Fidelity Advisor Fidelity Advisor MLF Bancorp,
Long Term Income & Equity Inc. Common Participant
Fund Growth Fund Growth Fund Stock Loans Total
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Additions:
Participant contributions $ 168,569 74,216 93,160 28,767 - 364,712
Transfer from Pentegra 1,136,427 282,088 260,601 - 118,193 1,797,309
Interest and dividend income 65,514 6 370 1,523 - 67,413
Participant loan initiations - - - - 23,600 23,600
Participant loan repayments 28,082 33 1,449 1,873 - 31,437
Net realized and unrealized
gains on investments - 7,128 25,608 4,929 - 37,665
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Total additions 1,398,592 363,471 381,188 37,092 141,793 2,322,136
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Deductions:
Benefit distributions 62,549 16,933 21,779 - 832 102,093
Participant loan initiations 10,272 858 12,470 - - 23,600
Participant loan repayments - - - - 31,437 31,437
Other deductions 159 14 52 364 - 589
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Total deductions 72,980 17,805 34,301 364 32,269 157,719
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Transfers among funds (76,242) (2,370) (6,526) 85,138 - -
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Increase in net assets
available for plan benefits 1,249,370 343,296 340,361 121,866 109,524 2,164,417
Net assets available for plan
benefits:
Beginning of year - - - - - -
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End of year $ 1,249,370 343,296 340,361 121,866 109,524 2,164,417
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See accompanying notes to financial statements.
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MLF BANCORP SAVINGS PLAN
Notes to Financial Statements
March 31, 1996
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(1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BASIS OF PRESENTATION
The accompanying financial statements of the MLF Bancorp Savings Plan
(the "Plan") have been prepared on the accrual basis and present the
net assets available for plan benefits and changes in those net
assets. Investments held by the trustee, CIGNA Retirement &
Investment Services ("CIGNA") are stated at fair value as determined
by quoted market prices.
EXPENSES OF THE PLAN
Administrative expenses were partially paid by MLF Bancorp, Inc. (the
"Company"), the Plan's sponsor during the year ended March 31, 1996.
Effective April 1, 1996, administrative expenses will be paid by the
Plan.
(2) GENERAL DESCRIPTION OF THE PLAN
The following brief description of the Plan is provided for general
information purposes only. Participants should refer to the Plan
document for more complete information. The Plan covers substantially
all employees of the Company. Employees become eligible to participate
in the Plan on the first day of the month following one year of
service which is defined as a twelve month period in which the
employee completes 1,000 hours of service.
In July 1995, all investments of the prior multi-employer Financial
Institutions Thrift Plan-Pentegra Group ("Pentegra") plan were
transferred to CIGNA. The Plan currently maintains four funds as
follows (descriptions are based on the fund's prospectus):
Guaranteed Long Term Fund
An allocated insurance account offered by CIGNA, where funds
are invested in longer term money market instuments whereby
the interest rate paid is declared in advance. CIGNA
guarantees principal and credited interest against loss.
Fidelity Advisor Income and Growth Fund
Invested in a diversified portfolio of equity and fixed
income securities with income, growth of income, and capital
appreciation potential.
(Continued)
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MLF BANCORP SAVINGS PLAN
Notes to Financial Statements
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(2) CONTINUED
Fidelity AdvisorEquity Growth Fund
At least 65% of the fund's net assets will be invested in the
common and preferred stock of companies with above average
growth characteristics. Up to 35% of the fund will invested
in debt obligations.
MLF Bancorp, Inc. Common Stock
Invested in common stock of the Company.
Participants may contribute to the Plan by salary reduction up to 15%
of the first $150,000 of gross annual salary. Such contributions defer
the participant's earnings up to a maximum of $9,240 in each plan
year, indexed annually. All contributions to the Plan are immediately
vested. All funds contributed to the Plan are held in a trust fund,
which are invested at the direction of the participant.
Loans against the participants' accounts are available subject to a
maximum loan amount and certain repayment provisions.
Included in net assets available for plan benefits at March 31, 1996
was $26,516 of distributions payable to terminated employees.
(3) FEDERAL INCOME TAXES
The Internal Revenue Service has determined, as of December 28, 1995,
that the Plan qualifies under the provisions of Section 401(a) of the
Internal Revenue Code and is exempt from federal income taxes under
Section 501(a).
(4) RECONCILIATION TO FORM 5500
The Internal Revenue Service requires distributions payable to be
recorded as a liability of the Plan on Form 5500. However, for
financial statement purposes, distributions payable are not recorded
as reductions of net assets available for plan benefits. Accordingly,
distributions payable to terminated employees as described in note 2
are not reflected as reductions in net assets available for plan
benefits.
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MLF BANCORP SAVINGS PLAN SCHEDULE 1
Item 27(a) - Assets Held for Investment Purposes
March 31, 1996
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Current
Description Cost value
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Unallocated insurance account:
Guaranteed Long Term Fund $ 1,249,370 1,249,370
Pooled separate account:
Fidelity Advisor Income and Growth Fund 336,632 343,296
Fidelity Advisor Equity Growth Fund 316,953 340,361
MLF Bancorp, Inc. Common Stock 115,478 121,866
Loans to participants:
Various interest rates due in periodic installments over
one to five years 109,524 109,524
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MLF BANCORP SAVINGS PLAN SCHEDULE 2
Item 27(d) - Reportable Transactions
Year ended March 31, 1996
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Fair value
Of asset Net gain (loss)
Purchase Selling Cost of at date of (historical
Series of securities transactions price price asset transaction cost basis)
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Unallocated insurance account:
Guaranteed Long Term Fund $ 1,414,597 - 1,414,597 1,414,597 -
- 165,227 165,227 165,227 -
Pooled separate accounts:
Fidelity Advisor Income and Growth Fund 375,425 - 375,425 375,425 -
- 39,257 38,793 39,257 464
Fidelity Advisor Equity Growth Fund 397,807 - 397,807 397,807 -
- 83,055 80,854 83,055 2,201
MLF Bancorp, Inc. Common Stock 117,575 - 117,575 117,575 -
- 1,975 2,097 1,975 (122)
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