1
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-QSB
(Mark One)
(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: 0-20331
-----------------------------------------------------
Midwest Federal Financial Corp.
- ----------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
Wisconsin 39-1725856
- ----------------------------------------------------------------------------
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
1159 Eighth Street, Baraboo, Wisconsin 53913
- ----------------------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
(608) 356-7771
- ----------------------------------------------------------------------------
(Registrant's telephone number, including area code)
N/A
- ----------------------------------------------------------------------------
(Former name, former address and former fiscal year, if changed since last
report)
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. X YES NO
------------ -----------
Registrant became subject to the filing requirements of the Act on July 7, 1992.
As of May 2, 1997 there were 2,069,998 shares, $.01 par value, of the
registrant's common stock issued and 1,624,874 shares or common shares
equivalents are outstanding.
2
Midwest Federal Financial Corp.
And Subsidiary
Table of Contents
PART I - Financial Information
Consolidated Statements of Financial Condition (unaudited) 1
Consolidated Statements of Operations (unaudited) 2
Consolidated Statements of Cash Flows (unaudited) 3
Notes to Consolidated Financial Statements (unaudited) 4
Management's Discussion and Analysis of Financial
Condition and Results of Operations 11
PART II - Other Information
Item 1. Legal Proceedings 13
Item 2. Changes in Securities 13
Item 3. Defaults Upon Senior Securities 13
Item 4. Submission of Matters to Vote
of Securities Holders 13
Item 5. Other Information 13
Item 6. Exhibits and Reports on Form 8-K 13
3
MIDWEST FEDERAL FINANCIAL CORP. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
MARCH 31, 1997 AND DECEMBER 31, 1996
MARCH 31, 1997 DEC. 31, 1996
-------------- -------------
(UNAUDITED)
ASSETS
CASH AND CASH EQUIVALENTS $ 7,942,262 $ 6,874,107
OTHER INTEREST-BEARING DEPOSITS 100,000 100,000
SECURITIES HELD TO MATURITY (FAIR VALUE 1997 $1,084,772; 1996 $1,093,240) 1,100,000 1,100,000
SECURITIES AVAILABLE FOR SALE 34,002,694 34,320,832
LOANS HELD FOR SALE 703,900 527,446
LOANS, NET OF ALLOWANCE FOR LOAN LOSSES 1997 $1,514,673; 1996 $1,538,580 147,531,469 144,201,689
ACCRUED INTEREST RECEIVABLE 1,777,915 1,512,342
PREMISES AND EQUIPMENT, NET 4,124,190 4,030,183
OTHER ASSETS 3,787,563 3,633,424
------------ ------------
$201,069,993 $196,300,023
============ ============
LIABILITIES AND STOCKHOLDERS EQUITY
LIABILITIES
DEPOSITS:
NON-INTEREST BEARING $ 12,403,253 $ 13,204,354
INTEREST BEARING 144,367,468 139,287,113
------------- -------------
$156,770,721 $152,491,467
BORROWED FUNDS 24,750,000 24,800,000
ADVANCE PAYMENTS BY BORROWERS -- ESCROW ACCOUNTS 209,113 141,893
ACCRUED INTEREST PAYABLE AND OTHER LIABILITIES 2,022,566 1,962,987
------------- -------------
183,752,401 179,396,347
------------- -------------
COMMITMENTS, CONTINGENCIES AND CREDIT RISK
STOCKHOLDER'S EQUITY
COMMON STOCK, PAR VALUE $.01 PER SHARE, 9,000,000 SHARES AUTHORIZED,
2,069,998 SHARES ISSUED, OUTSTANDING 1,624,874 AND 1,620,379 RESPECTIVELY 20,700 20,700
ADDITIONAL PAID-IN CAPITAL 6,495,310 6,495,310
RETAINED EARNINGS, SUBSTANTIALLY RESTRICTED 15,067,380 14,507,322
UNREALIZED GAIN (LOSS) ON SECURITIES AVAILABLE FOR SALE, NET (292,000) (94,600)
LOAN TO ESOP (335,624) (350,142)
TREASURY STOCK, AT COST 445,124 AND 449,619 SHARES RESPECTIVELY (3,638,174) (3,674,914)
-------------- -------------
17,317,592 16,903,676
-------------- -------------
$201,069,993 $196,300,023
============== =============
SEE ACCOMPANYING NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Page 1
4
Midwest Federal Financial Corp.
And Subsidiary
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Quarter Ended
-------------
03/31/97 03/31/96
-------- ---------
Interest and dividend income:
Mortgage loans $2,371,797 $2,023,293
Other loans 940,163 902,124
Investment securities and interest-bearing deposits 307,034 376,644
Mortgage-backed securities 240,393 201,803
Dividends on stock in Federal Home Loan Bank 23,384 14,860
----------- -----------
TOTAL INTEREST AND DIVIDEND INCOME 3,882,771 3,518,724
----------- -----------
Interest Expense:
Deposits 1,706,008 1,624,421
Borrowed funds 347,666 186,519
----------- -----------
TOTAL INTEREST EXPENSE 2,053,674 1,810,940
----------- -----------
Net interest income 1,829,097 1,707,784
Provision for loan losses 69,000 52,500
----------- -----------
Net interest income after provision for loan losses 1,760,097 1,655,284
----------- -----------
Non-interest income:
Loan fees and service charges 70,858 73,386
Deposit account fees and service charges - Net 213,373 178,590
Net gain on sale of investment and mortgage-backed securities 150,022 118,779
Net gain on sale of loans 75,269 67,802
Other income 120,675 126,742
---------- ------------
TOTAL NON-INTEREST INCOME 630,197 565,299
---------- ------------
Operating Expenses:
Compensation and other employee benefits 753,022 678,553
Occupancy 190,616 203,080
Telephone and postage 55,976 53,627
Data processing 95,152 90,542
Federal deposit insurance premiums 21,892 69,782
Other 236,535 244,511
----------- ------------
TOTAL OPERATING EXPENSES 1,353,193 1,340,095
---------- -----------
Income before provision for income taxes 1,037,101 880,488
Provision for income taxes 338,800 319,500
----------- ------------
NET INCOME 698,301 560,988
=========== ============
Total earning per share $ .40 $.32
=========== ============
See accompanying notes to consolidated financial statements
* Earnings per share for prior periods has been restated to reflect a 2 for 1
stock dividend executed in May 1996.
Page 2
5
MIDWEST FEDERAL FINANCIAL CORP.
AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
THREE MONTHS ENDED
------------------
03/31/97 03/31/96
-------- --------
Cash Flows from operating activities:
Net Income $ 698,301 $ 560,988
Adjustments to reconcile net income to net cash provided by
operating activities:
Depreciation 90,980 92,300
Amortization 21,803 21,803
Net amortization (accretion) of bond premiums and 82,815 36,826
discounts
Provision for loan losses 69,000 52,500
Securities (gains) losses (150,022) (118,779)
Gain on sale of loans (75,629) (67,802)
Origination of loans held for sale (4,317,294) (5,217,233)
Proceeds from sale of loans held for sale 4,216,109 5,284,690
Deferred income taxes 0 0
Increase in accrued interest receivable and other assets (329,515) (220,960)
Increase in accrued interest payable and other liabilities 79,075 65,591
------------ -----------
Net cash provided by operating activities 385,983 489,924
------------ -----------
Cash flows from investing activities
Net (increase) decrease in other interest-bearing deposits 0 299,000
Purchases of securities held to maturity 0 0
Proceeds from maturities of securities held to maturity 0 800,000
Purchases of securities available for sale (6,724,728) (10,461,491)
Proceeds from sales of securities available for sale 6,487,746 8,826,180
Proceeds from maturities of securities available for sale 312,927 2,513,349
Net increase in loans (3,398,780) (2,739,518)
Purchases of premises and equipment (184,987) (90,714)
------------- ------------
Net cash (used in) investing activities (3,507,822) (853,194)
Cash flows from financing activities
Net decrease in deposits 4,279,254 3,901,740
Net increase (decrease) in borrowings (50,000) (3,000,000)
Net increase in advance payments by borrowers for escrow 67,220 81,100
Purchase of treasury stock 0 0
Proceeds from exercise of stock options 15,049 0
Dividends paid (121,529) (61,234)
------------ -----------
Net cash provided by financing activities 4,189,994 921,606
------------ -----------
Increase in cash and cash equivalents 1,068,155 558,336
Cash and cash equivalents:
Beginning 6,874,107 6,479,903
------------ -----------
Ending $ 7,942,262 $ 7,038,239
============ ===========
Supplemental cash flow information
Cash payments for:
Interest $ 2,053,674 $ 1,810,940
Income taxes 338,800 319,500
See Notes to Consolidated Financial Statements
Page 3
6
MIDWEST FEDERAL FINANCIAL CORP.
AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accounting policies of Midwest Federal Financial Corp. and Subsidiary (the
Company) conform to generally accepted accounting principles and prevailing
practices within the thrift industry. A summary of the more significant
accounting policies follows:
PRINCIPLES OF CONSOLIDATION
The accompanying consolidated financial statements include the accounts of
Midwest Federal Financial Corp., its wholly-owned subsidiary, Baraboo Federal
Bank, FSB (the Bank), and the Bank's wholly-owned subsidiary, BF Financial,
Inc. All significant intercompany accounts and transactions have been
eliminated in consolidation. BF Financial, Inc. offers full service brokerage
services and insurance annuity contracts to its customers.
CASH EQUIVALENTS
The Company generally considers all highly liquid debt instruments with
original maturities when purchased of three months or less to be cash
equivalents.
SECURITIES HELD TO MATURITY AND AVAILABLE FOR SALE
Management determines the appropriate classification of debt securities at the
time of purchase. Debt securities are classified as held-to- maturity when the
Company has the positive intent and ability to hold the securities to maturity.
Held to maturity securities are stated at amortized cost.
Debt securities not classified as held to maturity and marketable equity
securities are classified as available for sale. Available for sale securities
are stated at fair value, with the unrealized gains and losses, net of tax,
reported as a separate component of shareholders' equity. Prior to fiscal
1994, investment securities and mortgage-backed and related securities held for
sale were carried at the lower of cost or market value.
The cost of debt securities classified as held to maturity or available for
sale is adjusted for amortization of premiums and accretion of discounts to
maturity, or in the case of mortgage-backed and related securities, over the
estimated life of the security. Such amortization is based on a level-yield
method and is included in interest income from the respective security.
Interest and dividends are included in interest and dividend income from
investments. The cost of securities sold is based on the specific
identification method.
LOANS HELD FOR SALE
Mortgage loans held for sale generally consist of current production of certain
fixed-rate first mortgage loans. Mortgage loans held for sale are carried at
the lower of cost (less principal payments received) or market value.
LOANS RECEIVABLE
Loans receivable are stated as unpaid principal balances, less the allowance
for loan losses and net deferred loan origination fees. Interest income is
recognized using methods which approximate a level yield on principal amounts
outstanding. Accrual of interest is discontinued either when reasonable doubt
exists as to the full, timely collection of interest or principal or when a
loan becomes contractually past due by 90 days or more with respect to interest
or principal. At that time, any accrued but uncollected interest is reversed,
and additional income is recorded only to the extent that payments are received
and the collection of principal is reasonably assured.
LOAN FEES AND RELATED COSTS
Certain loan origination fees, commitment fees and direct loan origination
costs are being deferred and the net amounts amortized as an adjustment of the
related loan's yield. The Bank is amortizing these amounts into interest
income, using the level yield method, over the contractual life of the related
loan.
Other origination and commitment fees not required to be recognized as a yield
adjustment are included in loan fees and service charges.
Page 4
7
MIDWEST FEDERAL FINANCIAL CORP.
AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
FORECLOSED PROPERTIES
Real estate acquired by foreclosure or deed in lieu of foreclosure, is adjusted
to its fair market value upon acquisition and is subsequently carried at the
lower of cost or net realizable value. Costs related to the development and
improvement of property are capitalized; holding costs are charged to expense.
ALLOWANCE FOR LOSSES ON LOANS AND FORECLOSED PROPERTIES
Management periodically reviews loans and foreclosed properties to determine
whether the estimated realizable value of the related asset is less than the
carrying amount. In making such determinations, consideration is given to
estimated sales price, refurbishing costs, and direct holding and selling
costs. When a loss is anticipated, an allowance for the estimated loss is
provided. In addition, general loss allowances are established in excess of
identifiable losses. This allowance is based on the Bank's own loss
experience, that of the financial services industry, and management's ongoing
assessment of the credit risk inherent in the portfolio.
OFFICE PROPERTIES AND EQUIPMENT
Office properties and equipment are recorded at cost. Maintenance and repair
costs are charged to expense as incurred. When property is retired or
otherwise disposed of, the related cost and accumulated depreciation are
removed from the respective accounts and the resulting gain or loss is recorded
in income. The cost of office properties and equipment is being depreciated
principally by accelerated and straight-line methods over the estimated useful
lives of the assets for both financial reporting and tax reporting purposes.
INCOME TAXES
Deferred income taxes have been provided under the liability method. Deferred
tax assets and liabilities are determined based upon the difference between the
financial statement and tax bases of assets and liabilities, as measured by the
enacted tax rates which will be in effect when these differences are expected
to reverse. Deferred tax expense is the result of changes in the deferred tax
asset and liability.
EARNINGS PER SHARE
Earnings per share of common stock for the periods ending March 31, 1997 and
1996 were computed based on consolidated net income and weighted average
outstanding shares. The weighted average outstanding shares for the quarter
ending March 31, 1997 and 1996 were 1,726,924 and 1,737,852 respectively.
Prior periods have been restated to reflect a 2 for 1 stock dividend executed
in May 1996.
Page 5
8
MIDWEST FEDERAL FINANCIAL CORP.
AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
ACCOUNTING CHANGES
In February 1997, the Financial Accounting Standards Board Issued Statement No.
128, "Earnings Per Share" (SFAS No. 128). SFAS 128 simplifies the standards
for computing earnings per share and makes the calculation comparable to
international standards. SFAS 128 replaces primary earnings per share with a
presentation of basic earnings per share. It also requires dual presentation
of basic and diluted earnings per share and a reconciliation of basic to
diluted earnings per share.
Basic earnings per share is computed by dividing income available to common
stockholders by the weighted-average number of common shares outstanding for
the period. Diluted earnings per share reflects the potential dilution that
could occur if securities or other contracts to issue common stock were
exercised or converted into common stock or resulted in the issuance of common
stock that then shared in the earnings of the Company.
SFAS 128 is effective for financial statements issued for periods ending after
December 15, 1997, and requires restatement of all prior period earnings per
share data. That is, SFAS 128 will be implemented in the fourth quarter of
1997 and restated back to January 1, 1997. If SFAS 128 had been in effect
during the first quarter of 1997, basic earnings per share would have been $.43
per share and diluted earnings per share would have been $.40 per share for the
period ended March 31, 1997.
RECLASSIFICATIONS
Certain amounts in these financial statements for prior years have been
reclassified to conform to the March 31, 1997, presentation.
Page 6
9
MIDWEST FEDERAL FINANCIAL CORP.
AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 2 - DEBT AND EQUITY SECURITIES
Debt and equity securities have been classified in the consolidated
statements of financial condition according to management's intent. The
carrying amount of securities and their approximate fair values are shown
below.
Gross Gross Estimated
Amortized Unrealized Unrealized Market
Cost Gains Losses Value
SECURITIES HELD TO MATURITY:
March 31, 1997
U.S. Government and agency securities $ 1,100,000 ---- $ 15,228 $1,084,772
============ ========== ==========
December 31, 1996
U.S. Government and agency securities $ 1,100,000 $ 440 $ 7,200 $1,093,240
============ ========== ========== ==========
SECURITIES AVAILABLE FOR SALE:
March 31, 1997
U.S. Government and agency securities $12,390,622 $ 40,714 $244,345 $12,186,991
State and municipal securities 5,785,015 13,712 66,550 5,732,177
Mortgage-backed and related securities 15,236,129 31,339 298,870 14,968,598
Equity securities 1,049,928 121,375 56,375 1,114,928
------------ ---------- ---------- -------------
$ 34,461,694 $ 207,140 $666,140 $34,002,694
============ ========== ========== =============
December 31, 1996
U. S. Government and agency securities $ 11,907,933 $ 30,599 $129,628 $11,808,904
State and municipal securities 5,576,226 94,514 6,373 5,664,367
Mortgage-backed securities 15,827,399 46,298 270,410 15,603,287
Equity securities 1,158,874 87,975 2,575 1,244,274
------------ ---------- ---------- ------------
$ 34,470,432 $ 259,386 $408,986 $34,320,832
============ ========== ========== =============
Page 7
10
MIDWEST FEDERAL FINANCIAL CORP.
AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 3 - LOANS RECEIVABLE
Details of loans receivable
03/31/97 12/31/96
-------- --------
Commercial real estate $ 35,518,979 $ 35,245,601
Residential real estate 68,399,567 66,615,603
Construction 2,496,601 4,911,600
Consumer installment 16,908,376 16,435,287
Home equity 14,439,062 13,347,187
Commercial 12,004,359 10,643,378
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$ 149,766,944 $147,198,656
Less:
Undisbursed loan proceeds 720,802 1,458,387
Allowance for loan losses 1,514,673 1,538,580
------------- ------------
$ 147,531,469 $144,201,689
============= ============
Page 8
11
MIDWEST FEDERAL FINANCIAL CORP.
AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 4 - DEPOSIT ACCOUNTS
Deposit accounts are summarized as follows:
03/31/97 12/31/96
-------- --------
Amount Percent Amount Percent
------- ------- ------ -------
Demand Deposit accounts (noninterest-bearing) $ 12,403,253 7.91% $ 13,204,352 8.66%
Negotiable Orders of Withdrawal (NOW) accounts
(2.25% at December 31, 1996 and March 31, 1997) 9,905,643 6.32% 10,775,861 7.07%
Savings Accounts
(2.25% at December 31, 1996 and March 31, 1997) 11,106,898 7.08% 11,255,467 7.38%
Money market accounts
(2.40% to 5.15% at December 31, 1996 and March 31, 1997) 36,099,767 23.03% 30,711,114 20.14%
Certificate Accounts:
Less than 3.00% 0 0 0 0
3.00% to 3.99% 1,183,011 0.75% 2,398,461 1.57%
4.00% to 4.99% 2,949,785 1.88% 3,474,756 2.28%
5.00% to 5.99% 51,574,125 32.90% 48,399,408 31.74%
6.00% to 6.99% 29,516,064 18.83% 29,819,655 19.55%
7.00% and over 2,032,175 1.30% 2,452,393 1.61%
-------------- --------- ------------ -------
Totals $ 156,770,721 100.00% $152,491,467 100.00%
============== ========= ============ =======
Weighted Average Savings Interest Rate 5.14% 5.10%
===== =====
Page 9
12
MIDWEST FEDERAL FINANCIAL CORP.
AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 5 - RETAINED EARNINGS - SUBSTANTIALLY RESTRICTED
Under the provisions of FIRREA, the Savings Bank is required to meet
certain tangible, core and risk-based capital requirements. Tangible
capital generally consists of stockholders' equity minus certain intangible
assets. Core capital generally consists of stockholders' equity. The
risk-based capital requirements presently address risk related to both recorded
assets and off-balance-sheet commitments and obligations.
The following table summarizes the Savings Bank's capital ratios and the ratios
required by FIRREA and subsequent regulations at March 31, 1997:
Tangible Core Risk-Based
Capital Capital Capital
------- ------- -------
Savings Bank's regulatory percentage 7.58% 7.58% 11.99%
Required regulatory percentage 1.50% 3.00% 8.00%
----------- ----------- -----------
Excess regulatory percentage 6.08% 4.58% 3.99%
=========== =========== ===========
Savings Bank's regulatory capital $15,089,000 $15,089,000 $16,604,000
Required regulatory capital 2,988,000 5,975,000 11,076,000
----------- ----------- -----------
Excess regulatory capital $12,101,000 $ 9,114,000 $ 5,528,000
=========== =========== ===========
Page 10
13
MIDWEST FEDERAL FINANCIAL CORP.
AND SUBSIDIARY
MANAGEMENT'S DISCUSSIONS AND ANALYSIS
OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
FINANCIAL DATA SUMMARY
TOTAL ASSETS
Total assets have increased $4.8 million from December 31, 1996, to March 31,
1997, an increase of 2.4%. Deposit growth has funded loan growth.
LOANS
Net loans receivable have increased by $3.3 million from December 31, 1996, to
March 31, 1997. This is an increase of 2.3 %. Adjustable rate mortgage loans,
commercial and consumer loans are put into the portfolio of the Bank. Fixed
rate mortgage originations continue to be sold to FHLMC.
CASH AND INVESTMENTS
Mortgage backed securities and investments have decreased by $.3 million, or
.9%. Proceeds from this decrease in investments were used to fund loan growth.
DEPOSITS
Deposit growth from December 31, 1996, to March 31, 1997, was $4.3 million, or
2.8%. Deposit growth was used to fund loan growth.
BORROWED FUNDS
The borrowed funds of the Bank have decreased by $50,000. Borrowings
stayed flat due to deposit growth.
EQUITY
Equity increased only $.4 million or 2.4% due to unrealized losses on
securities available for sale. The unrealized loss is a result of a
$197,400 decrease in the market value of the investment portfolio as of March
31, 1997.
OPERATING DATA SUMMARY
NET INTEREST INCOME
Net interest income for the first quarter of 1997 is up 7.1% over the first
quarter of 1996. The increase in net interest income is due to growth in
assets of 12.8% from one year ago. The percentage increase in net interest
income is less than the percentage increase in assets due to the net interest
margin shrinking by .22 basis points.
NON-INTEREST INCOME
Non-interest income increased by 11.5% from the quarter ending March 31, 1996,
compared to the quarter ending March 31, 1997. This increase can be attributed
to growth in deposit fees and increases in gains on sale of securities.
NON-INTEREST EXPENSE
Non-interest expenses increased by 1.0% for the quarter ending March 31, 1997,
when compared to the quarter ending March 31, 1996. The small increase is due
primarily to a reduction in FDIC insurance premium.
NET INCOME
Net income for the first quarter of 1997 is 24.5% higher than the first quarter
of 1996 and earnings per share increased from $.32 to $.40, or 25%.
Page 11
14
MIDWEST FEDERAL FINANCIAL CORP.
AND SUBSIDIARY
KEY OPERATING RATIOS
(UNAUDITED)
ENDED MARCH 31
Three Month Period
------------------
1997 1996
---- ----
Return on assets
(Net income divided by average assets) (1) 1.41% 1.28%
Return on average equity
(net income divided by average equity) (1) 16.24% 13.39%
Average equity to average assets 8.66% 9.59%
Interest rate spread
(difference between average yield on interest earning assets and 3.57% 3.71%
average cost of interest bearing liabilities) (1)
Net interest margin
(net interest income as a percentage of average interest earning assets) (1) 4.00% 4.22%
Non-interest expense to average assets 2.72% 3.07%
Average interest earning assets to interest bearing deposits 109.61% 111.52%
Allowance for loan losses to total loans at end of period 1.01% 1.06%
Net charge-offs to average outstanding loans during the period .06% .02%
Ratio of non-performing assets to total assets .14% .26%
Risk-based capital (of the Bank) 11.99% 14.14%
- ---------------
(1) Annualized
Page 12
15
PART II. OTHER INFORMATION
Item 1. Legal Proceedings
Not Applicable
Item 2. Changes in Securities
Not Applicable
Item 3. Defaults upon Senior Securities
Not Applicable
Item 4. Submission of Matters to Vote of Securities Holders
Not Applicable
Item 5. Other information
Not Applicable
Item 6. Exhibits and Reports on Form 8-K
During the quarter ended March 31, 1997, the Registrant was not
required to file any Current Reports on Form 8-K, and no reports on
Form 8-K were filed.
Page 13
16
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.
MIDWEST FEDERAL FINANCIAL CORP.
/s/ Gary E. Wegner, President & CEO
- ---------------------------------------------------
/s/ Dean C. Carter, Chief Financial Officer
- ---------------------------------------------------
Date: May 13, 1997