UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-QSB
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended December 31, 2001
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Commission File No. 0-20956
HFB FINANCIAL CORPORATION
A Tennessee Corporation I.R.S. Employer
Identification
No. 61-1228266
Address Telephone Number
------- ----------------
1602 Cumberland Avenue (606) 248-1095
Middlesboro, Kentucky 40965
Indicate by check mark whether the registrant (1) has filed all reports required
by Section 13 or 15(d) of the Securities and Exchange Act of 1934 during the
preceding twelve 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 .
The number of shares of the registrant's $1 par value common stock outstanding
at February 13, 2002 was 1,296,854.
There are a total of 14 pages filed in this document.
HFB FINANCIAL CORPORATION
I N D E X
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PAGE NO
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PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
Consolidated Balance Sheet 3
Consolidated Statement of Income 4
Consolidated Statement of Stockholders' Equity 5
Consolidated Statement of Cash Flows 6
Notes to Consolidated Financial Statements 7
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS 8-12
PART II - OTHER INFORMATION 13
SIGNATURES 14
2
HFB FINANCIAL CORPORATION AND SUBSIDIARY
CONSOLIDATED BALANCE SHEET
(UNAUDITED)
DECEMBER 31, JUNE 30,
2001 2001
ASSETS
Cash and cash equivalents $ 13,594,073 $ 13,887,788
Trading securities -- 1,049,327
Investment securities, available for sale 62,255,664 57,109,780
Loans 141,628,404 137,581,692
Allowance for loan losses (779,543) (718,267)
------------- -------------
Net loans 140,848,861 136,863,425
Premises and equipment 4,542,876 4,642,655
Federal Home Loan Bank stock 1,582,400 1,527,400
Interest Receivable 1,660,392 1,790,607
Other assets 553,780 533,607
------------- -------------
Total assets $ 225,038,046 $ 217,404,589
============= =============
LIABILITIES
Deposits
Interest bearing $ 186,540,007 $ 177,316,986
Non-interest bearing 2,565,697 4,631,492
------------- -------------
Totals 189,105,704 181,948,478
Long term debt 12,412,844 12,452,796
Interest payable 919,833 962,143
Other liabilities 1,622,278 1,572,344
------------- -------------
Total liabilities 204,060,659 196,935,761
------------- -------------
STOCKHOLDERS' EQUITY
Issued and outstanding - 1,579,582 shares, respectively 1,579,582 1,579,582
Additional paid-in-capital 8,729,990 8,729,990
Less: Common stock acquired by Rabbi trusts for deferred
compensation plans (488,102) (488,102)
Treasury stock, at cost, 282,728 shares, respectively (2,484,267) (2,484,267)
Retained earnings 13,335,998 12,839,997
Accumulated other comprehensive loss 304,186 291,628
------------- -------------
Total stockholders' equity 20,977,387 20,468,828
------------- -------------
Total liabilities and stockholders' equity $ 225,038,046 $ 217,404,589
============= =============
See notes to consolidated financial statements.
3
HFB FINANCIAL CORPORATION AND SUBSIDIARY
CONSOLIDATED STATEMENT OF INCOME
(Unaudited)
THREE-MONTHS ENDED SIX-MONTHS ENDED
DECEMBER 31, DECEMBER 31,
------------------------- -------------------------
2001 2000 2001 2000
INTEREST INCOME
Loans receivable $ 2,957,886 $ 3,022,776 $ 5,884,567 $ 5,780,987
Investment securities 837,076 961,053 1,693,935 1,981,056
Other dividend income 41,749 35,450 84,336 70,522
Deposits with financial institutions 40,423 25,584 126,018 39,613
----------- ----------- ----------- -----------
Total interest income 3,877,134 4,044,863 7,788,856 7,872,178
----------- ----------- ----------- -----------
INTEREST EXPENSE
Deposits 1,938,881 2,214,452 4,118,448 4,377,771
Short term borrowings -- -- -- --
Long term debt 171,007 175,109 342,418 349,151
----------- ----------- ----------- -----------
Total interest expense 2,109,888 2,389,561 4,460,866 4,726,922
----------- ----------- ----------- -----------
NET INTEREST INCOME 1,767,246 1,655,302 3,327,990 3,145,256
Provision for loan losses 47,500 22,480 85,000 44,980
----------- ----------- ----------- -----------
NET INTEREST INCOME AFTER
PROVISION FOR LOAN LOSSES 1,719,746 1,632,822 3,242,990 3,100,276
----------- ----------- ----------- -----------
OTHER INCOME
Service charges for deposit accounts 197,082 146,879 361,985 273,807
Other customer fees 34,239 19,527 57,080 33,298
Net gain (loss) on trading securities 11,977 70,619 21,426 132,162
Net realized gain (loss) on sales of
available for sale securities -- (670) 6,053 (670)
Other income 19,503 3,479 42,178 15,536
----------- ----------- ----------- -----------
Total other income 262,801 239,834 488,722 454,133
----------- ----------- ----------- -----------
OTHER EXPENSES
Salaries and employee benefits 650,245 531,195 1,264,125 1,048,943
Net occupancy expenses 94,327 81,356 189,718 169,530
Equipment expenses 129,919 98,768 245,374 190,507
Data processing fees 57,984 67,090 117,398 134,659
Deposit insurance expense 8,319 8,712 16,640 17,418
Legal and professional fees 90,096 48,323 149,533 116,054
Advertising 60,514 49,358 120,514 98,527
State franchise and deposit taxes 44,300 42,431 88,176 88,317
Other expenses 222,346 257,434 441,941 493,519
----------- ----------- ----------- -----------
Total other expenses 1,358,050 1,184,667 2,633,419 2,357,474
----------- ----------- ----------- -----------
INCOME BEFORE INCOME TAX 624,497 687,989 1,098,293 1,196,935
Income tax expense 206,225 237,398 355,890 412,634
----------- ----------- ----------- -----------
NET INCOME $ 418,272 $ 450,591 $ 742,403 $ 784,301
=========== =========== =========== ===========
BASIC EARNINGS PER SHARE $ 0.32 $ 0.35 $ 0.57 $ 0.61
DILUTED EARNINGS PER SHARE $ 0.32 $ 0.35 $ 0.57 $ 0.60
See notes to consolidated financial statements.
4
HFB FINANCIAL CORPORATION AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY
SIX-MONTHS ENDED DECEMBER 31, 2001
(UNAUDITED)
ACCUMULATED
ADDITIONAL COMPRE- OTHER TOTAL
COMMON PAID-IN RABBI TREASURY HENSIVE RETAINED COMPREHENSIVE STOCKHOLDERS'
STOCK CAPITAL TRUSTS STOCK INCOME EARNINGS INCOME (LOSS) EQUITY
---------------------------------------------------------------------------------------------------
Balances, June 30, 2001 $1,579,582 $8,729,990 ($488,102) ($2,484,267) $12,839,997 $291,628 $20,468,828
Net income $742,404 742,403 742,403
Other comprehensive
income, net of tax
Unrealized gain on securities 12,558 12,558 12,558
----------
Comprehensive income $754,962
==========
Cash dividend declared
($.19 per share) (246,402) (246,402)
----------------------------------------------- -----------------------------------------
BALANCES, DECEMBER 31, 2001 $1,579,582 $8,729,990 ($488,102) ($2,484,267) $13,335,998 $304,186 $20,977,387
=============================================== =========================================
See notes to consolidated financial statements.
5
HFB FINANCIAL CORPORATION AND SUBSIDIARY
CONSOLIDATED STATEMENT OF CASH FLOWS
SIX-MONTHS ENDED
DECEMBER 31,
----------------------------
2001 2000
---- ----
OPERATING ACTIVITIES
Net cash provided by operating activities $ 2,336,759 $ 1,257,711
------------ ------------
INVESTING ACTIVITIES
Purchases of securities available for sale (40,374,291) (500,000)
Proceeds from maturities of securities available for sale 25,997,383 1,340,949
Proceeds from sales of securities available for sale 9,128,907 3,649,998
Proceeds from maturities of securities held to maturity -- 1,643,580
Net change in loans (4,135,770) (7,269,914)
Purchases of premises and equipment (117,575) (828,595)
------------ ------------
Net cash used by investing activities (9,501,346) (1,963,982)
------------ ------------
FINANCING ACTIVITIES
Net change in
Non interest-bearing, interest-bearing and
savings deposits 1,258,206 223,600
Certificates of deposit 5,899,020 1,926,116
Short term borrowings -- (400,000)
Repayment of long term debt (39,952) (36,872)
Cash dividends (246,402) (246,838)
Proceeds from exercise of options on common stock -- 24,000
Purchase of treasury stock -- (39,964)
------------ ------------
Net cash provided by financing activities 6,870,872 1,450,042
------------ ------------
NET CHANGE IN CASH AND CASH EQUIVALENTS (293,715) 743,771
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 13,887,788 3,171,389
------------ ------------
CASH AND CASH EQUIVALENTS, END OF PERIOD $ 13,594,073 $ 3,915,160
============ ============
ADDITIONAL CASH FLOWS INFORMATION
Interest paid $ 4,160,758 $ 4,735,390
Income tax paid 307,432 261,812
See notes to consolidated financial statements.
6
HFB FINANCIAL CORPORATION
Notes to Consolidated Financial Statements (Unaudited)
1. BASIS OF PRESENTATION
The unaudited consolidated financial information for the three and
six-month periods ended December 31, 2001 and 2000 includes the results of
operations of HFB Financial Corporation (the "Company") and its wholly
owned subsidiary Home Federal Bank Corporation ("Home Federal" or the
"Bank"). The accompanying unaudited financial statements have been prepared
in accordance with accounting principles accepted in the United States for
interim financial statements and with the instructions to Form 10-QSB. It
is suggested that these statements and notes be read in conjunction with
the financial statements and notes thereto included in the Company's annual
report for the year ended June 30, 2001 on Form 10-KSB filed with the
Securities and Exchange Commission.
In the opinion of management, the financial information reflects all
adjustments (consisting only of normal recurring adjustments), which are
necessary for a fair presentation of the results of operations for such
periods but should not be considered as indicative of results for a full
year.
2. NON-PERFORMING LOANS AND PROBLEM ASSETS
The following sets forth the activity in the Company's allowance for loan
losses for the six-months ended December 31, 2001 and 2000:
(Dollars in thousands)
2001 2000
---- - ----
Balance July 1 $718 $645
Charge offs (23) (10)
Recoveries - 1
Provision for loan losses 85 45
-- --
Balance December 31 $780 $681
============ ============
Information on impaired loans is summarized below
AT DECEMBER 31 2001
----
Impaired loans with an allowance $2,198
Allowance for impaired loans (included in the Company's
allowance for loan losses) $224
SIX-MONTHS ENDED DECEMBER 31 2001
----
Average balance of impaired loans $1,826
Interest income recognized on impaired loans $0
Cash-basis interest received $0
3. RECLASSIFICATIONS
Reclassifications of certain amounts in the December 31, 2000 consolidated
statement have been made to conform to the December 31, 2001 presentation.
7
ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS
Certain matters discussed in this Quarterly Report on Form 10-QSB are
"forward-looking statements" intended to qualify for the safe harbors from
liability established by the Private Securities Litigation Reform Act of 1995.
These forward-looking statements can generally be identified as such because the
context of the statement will include words such as the Company "believes",
"anticipates", "expects", "estimates" or words of similar import. Similarly,
statements that describe the Company's future plans, objectives or goals are
also forward-looking statements. Such forward-looking statements are subject to
certain risks and uncertainties, which are described in, close proximity to such
statements and which could cause actual results to differ materially from those
anticipated as of the date of this report. Shareholders, potential investors and
other readers are urged to consider these factors in evaluating the
forward-looking statements and are cautioned not to place undue reliance on such
forward-looking statements. The forward-looking statements included herein are
only made as of the date of this report and the Company undertakes no obligation
to publicly update such forward-looking statements to reflect subsequent events
or circumstances.
GENERAL:
HFB Financial Corporation, a Tennessee Corporation, was formed in September 1992
at the direction of Home Federal Bank, Federal Savings Bank for the purpose of
becoming a holding company for the Bank as part of its conversion from mutual to
stock form. The Company's primary operation is its investment in the common
stock of the Bank.
The Bank is principally engaged in the business of accepting deposits from the
general public and originating permanent loans, which are secured by one-to-four
family residential properties located in its market area. The Bank also
originates consumer loans and commercial real estate loans, and maintains a
substantial investment portfolio of mortgage-backed and other investment
securities. During the quarter ended December 31, 2001, the Bank converted from
a federal thrift charter to a state chartered commercial bank as a means for
management to focus more on commercial lending and other activities permissible
for commercial banks.
The operations of Home Federal, and savings institutions generally, are
significantly influenced by general economic conditions and the monetary and
fiscal policies of government regulatory agencies. Deposit flows and costs of
funds are influenced by interest rates on competing investments and prevailing
market rates of interest. Lending activities are affected by the demand for
financing real estate and other types of loans, which in turn are influenced by
the interest rates at which such financing may be offered and other factors
related to loan demand and the availability of funds.
FINANCIAL CONDITION
The Corporation's assets increased by 3.50% to $225.0 million at December 31,
2001 compared to $217.4 million at June 30, 2001. The majority of this increase
is reflected in increases in loans and investments. These increases were
financed primarily by an increase in deposits and a decrease in trading account
securities.
In the past, the Company has maintained a portfolio of trading account
securities, which was comprised of common stock of other financial institutions.
The portfolio was totally liquidated during the quarter ended December 31, 2001
compared to $1.049 million at June 30, 2001.
Investment securities, available for sale, increased $5.2 million to $62.3
million at December 31, 2001 from $57.1 million at June 30, 2001 primarily as
the result of liquidity from an increase in deposits and the liquidation of
trading account securities.
8
Loans, net, increased by $3.9 million to $140.8 million at December 31, 2001
from $136.9 million at June 30, 2001 as the result of continued mortgage loan
demand and an increase in participation loans. The Company continues to maintain
a high percentage of its loan portfolio in adjustable-rate residential
mortgages.
At December 31, 2001, the allowance for loan losses was $780,000 or .55% of
loans receivable compared to $718,000 or .52 of loans receivable at June 30,
2001.
Total deposits increased by $7.2 million to $189.1 million at December 31, 2001
from $181.9 million at June 30, 2001. During the six-months ended December 31,
2001, certificates of deposit increased $5.9 million and NOW accounts and
savings deposits increased $1.3 million. Competition for deposits in the local
market has eased considerably over last quarter due to decreased loan demand and
increased liquidity in the market.
The Bank's regulatory liquidity ratio was 34.4% at December 31, 2001 as compared
to 36.2% at June 30, 2001. At December 31, 2001 the Bank met all the regulatory
capital requirements to be considered "well capitalized" under bank regulations.
Tangible, core and risk-based capital ratios were 8.5%, 8.5% and 15.7%
respectively at December 31, 2001 as compared to 8.7%, 8.7% and 15.7%
respectively, at June 30, 2001.
RESULTS OF OPERATIONS FOR THE THREE-MONTHS ENDED DECEMBER 31, 2001 AND 2000
Net income decreased by $33,000 to $418,000 for the three-month period ended
December 31, 2001 from $451,000 for the three-month period ended December 31,
2000. The primary reasons for the decrease were a $174,000 increase in other
expense and a $25,000 increase in the provision for loan losses offset by a
$112,000 increase in net interest income, a $23,000 increase in other income and
a $31,000 decrease in income tax expense.
Interest income decreased by $168,000 for the three-month period ended December
31, 2001 as compared to the three-month period ended December 31, 2000,
primarily a result of a lower weighted-average yield on earning assets. The
lower average yields were the result of sharp declines in interest rates over
the past 12 months.
Interest on loans decreased by $65,000 to $2.958 million for the three-month
period ended December 31, 2001 as compared to $3.023 million for the three-month
period ended December 31, 2000. This decrease is mainly attributable to a lower
weighted-average yield on loans during the quarter ended December 31, 2001.
Interest on investment securities and other dividend income decreased by
$118,000 to $879,000 for the three-month period ended December 31, 2001 from
$997,000 million for the three-month period ended December 31, 2000. This
decrease is primarily the result of a lower reinvestment rate on maturing
investments.
Interest on deposits with other financial institutions increased by $15,000 to
$40,000 for the three-month period ended December 31, 2001 from $25,000 for the
three-month period ended December 31, 2000 primarily due to a higher level of
interest-bearing deposits with financial institutions.
Similarly, interest expense on deposits decreased by $275,000 to $1.939 million
for the three-month period ended December 31, 2001 from $2.214 million for the
three-month period ended December 31, 2000 as a result of a significant drop in
rates paid on deposit accounts.
Interest expense on long-term debt decreased by $4,000 to $171,000 for the
three-month period ended December 31, 2001 from $175,000 for the three-month
period ended December 31, 2000, primarily due to a slightly lower level of
long-term debt.
The provision for loan losses increased $25,000 for the three-month period ended
December 31, 2001 as compared to the same period in 2000. The provision was the
result of management's evaluation of the adequacy of the allowance for loan
losses including consideration of recoveries of loans previously charged off,
the perceived risk exposure among loan types, actual loss experience,
delinquency rates, and current economic conditions. The Bank's allowance for
loan losses as a percent of total loans at December 31, 2001 was 0.55%.
9
Non-interest income increased by $23,000 to $263,000 for the three-month period
ended December 31, 2001 as compared to $240,000 for the same period in 2000. The
increase was primarily attributable to an increase of $50,000 in service charges
on deposits and an increase of $31,000 in other customer fees and other income
offset by a net decrease of $58,000 in gains on trading account securities and
realized gains and losses on available for sale securities.
Non-interest expense increased by $173,000 to $1.358 million for the three-month
period ended December 31, 2001 as compared to $1.185 million for the same period
in 2000.
Compensation and benefits increased by $119,000 to $650,000 for the three-month
period ended December 31, 2001 as compared to $531,000 for the three-months
ended December 31, 2000 primarily as the result of a $75,000 increase in
salaries, wages and commissions and an increase of $44,000 in the cost of
funding the Banks retirement plan.
Occupancy expense increased by $13,000 to $94,000 for the three-months ended
December 31, 2001 compared to $81,000 for the same period in 2000. This was
primarily due to an increase of $10,000 in depreciation expense attributable to
the addition of fixed assets over the past 12 months.
Equipment expense increased by $31,000 to $130,000 for the three-months ended
December 31, 2001 from $99,000 for the three months-ended December 31, 2000
primarily due to an increase in depreciation expense of $15,000 and an increase
of $17,000 in maintenance and repairs.
Data processing fees decreased by $9,000 to $58,000 for the three- months ended
December 31, 2001 from $67,000 for the same period in 2000 as the result a more
favorable contract negotiated with the Banks data processor.
Legal and professional fees increased by $42,000 to $90,000 for the three-month
period ended December 31, 2001 from $48,000 for the three-month period ended
December 31, 2000 primarily due to a higher level of consulting and legal
services utilized in the three-months ended December 31, 2001.
Advertising expense increased by $12000 to $61,000 for the quarter ended
December 31, 2001 compared to $49,000 for the quarter ended December 31, 2000
primarily due to a higher level of advertising activity in the current period.
State deposit and franchise taxes increased by $2,000 to $44,000 for the quarter
ended December 31, 2001 compared to $42,000 for the quarter ended December 31,
2000 primarily due to a higher level of deposits in the current period
Other expenses decreased by $35,000 to $222,000 for the three-month period ended
December 31, 2001 from $257,000 for the three-month period ended December 31,
2000, primarily due to decreases in telephone, postage, intangible amortization
and other miscellaneous expenses.
Income tax expense decreased by $31,000 to $206,000 for the three-month period
ended December 31, 2001 compared to $237,000 for the three-months ended December
31, 2000 due a lower level of taxable income.
RESULTS OF OPERATIONS FOR THE SIX-MONTHS ENDED DECEMBER 31, 2001 AND 2000
Net income decreased by $42,000 to $742,000 for the six-month period ended
December 31, 2001 from $784,000 for the six-month period ended December 31,
2000. The primary reasons for the decrease were a $40,000 increase in provision
for loan losses and a $276,000 increase in non-interest expense offset by a
$183,000 increase in net interest income, a $35,000 increase in non-interest
income and a $57,000 decrease in income tax expense.
Net interest income increased by $183,000 for the six-month period ended
December 31, 2001 as compared to the six-month period ended December 31, 2000,
primarily as the result of a higher volumes in the period ended December 31,
2001.
10
Interest on loans increased by $104,000 to $5.885 million for the six-month
period ended December 31, 2001 as compared to $5.781 million for the six-month
period ended December 31, 2000. This increase is mainly attributable to higher
volume.
Interest on investment securities and other dividend income decreased by
$274,000 to $1.778 million for the six-month period ended December 31, 2001 from
$2.052 million for the six-month period ended December 31, 2000. This decrease
is primarily the result of lower reinvestment rates on maturing securities.
Interest on deposits with other financial institutions increased by $86,000 to
$126,000 for the six-months ended December 31, 2001 compared to $40,000 for the
six-months ended December 31, 2000 primarily due to a higher average balance
during the period ended December 31, 2001.
Interest expense on deposits decreased by $260,000 to $4.118 for the six-month
period ended December 31, 2001 from $4.378 million for the six-month period
ended December 31, 2000 as a result of a significantly lower cost of funds.
Interest expense on short term borrowings and long term debt decreased by $7,000
to an aggregate of $342,000 for the six-month period ended December 31, 2001
from an aggregate of $349,000 for the six-month period ended December 31, 2000
primarily due to lower levels of short-term borrowings.
The provision for loan losses increased by $40,000 to $85,000 for the six-month
period ended December 31, 2001 as compared to $45,000 the same period in 2000.
The provision was the result of management's evaluation of the adequacy of the
allowance for loan losses including consideration of recoveries of loans
previously charged off, the perceived risk exposure among loan types, actual
loss experience, delinquency rates, and current economic conditions. The Bank's
allowance for loan losses as a percent of total loans, net at December 31, 2001
was 0.55%.
The Bank's non-interest income increased by $35,000 to $489,000 for the
six-month period ended December 31, 2001 as compared to $454,000 for the same
period in 2000. The increase was mainly attributable to a decrease in gains on
trading account securities and net gains on the sale of investment securities,
available for sale of $104,000 offset by an $88,000 increase in service charges
for deposit accounts and an increase of $50,000 in other customer fees and other
income.
Non-interest expense increased by $276,000 to $2.633 million for the six-month
period ended December 31, 2001 as compared to $2.357 million for the same period
in 2000. Compensation and benefits increased by $215,000 to $1.264 million for
the six-month period ended December 31, 2001 as compared to $1.049 million for
the same period in 2000. This increase is primarily attributable to annual wage
increases and an increase in the cost of funding the Banks retirement plan.
Occupancy expense increased by $20,000 to $190,000 for the six-month period
ended December 31, 2001 compared to $170,000 for the same period in 2000. This
increase was primarily due to a $17,000 increase in depreciation expense.
Equipment expense increased by $54,000 to $245,000 for the six-month period
ended December 31, 2001 compared to $191,000 for the same period in 2000. This
increase was mainly the result of higher deprecation associated with the
purchase of new furniture and equipment over the past year.
Data processing fees decreased by $18,000 to $117,000 for the six-month period
ended December 31, 2001 from $135,000 for the six-month period ended December
31, 2000 as the result a more favorable contract negotiated with the Banks data
processor.
Legal and professional fees increased by $34,000 to $150,000 for the six-month
period ended December 31, 2001 from $116,000 for the six-month period ended
December 31, 2000 primarily due to a increase in consulting fees.
Advertising expense increased by $22,000 to $121,000 for the six-month period
ended December 31, 2001 compared to $99,000 for the six-month period ended
December 31, 2000 due to a higher level of advertising.
11
Other expenses decreased by $52,000 to $442,000 for the six-month period ended
December 31, 2001 from $494,000 for the six-month period ended December 31, 2000
primarily as the result of decreases in telephone, postage, REO, intangible
amortization and other miscellaneous expenses.
Income tax expense decreased by $57,000 to $356,000 for the six-month period
ended December 31, 2001 compared to $413,000 for the six-months ended December
31, 2000 due to a lower level of taxable income.
12
HFB FINANCIAL CORPORATION
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
No matters were submitted to a vote of Security Holders during the
quarter ended December 31, 2001.
ITEM 5. OTHER INFORMATION
None
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
a. Exhibits
None
b. Reports on Form 8-K
None
13
HFB FINANCIAL CORPORATION
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed in its behalf by the
undersigned, thereunto duly authorized.
HFB FINANCIAL CORPORATION
By: /s/ David B. Cook
-------------------------
David B. Cook
President and
Chief Executive Officer
By: /s/ Stanley Alexander, Jr.
----------------------------
Stanley Alexander, Jr.
Chief Financial Officer
Dated: February 13, 2002
14