-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, FDEx5asSb82b8FMafh+8cpy+xOPrWQqbaGVfxwTAYw9Bg/wB2JrQ1+MSAUu/fssA S5c1lJoSUHwrXA/UGq3ACw== 0000892569-97-002221.txt : 19970814 0000892569-97-002221.hdr.sgml : 19970814 ACCESSION NUMBER: 0000892569-97-002221 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19970630 FILED AS OF DATE: 19970813 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: HARBOR BANCORP / CENTRAL INDEX KEY: 0000708193 STANDARD INDUSTRIAL CLASSIFICATION: STATE COMMERCIAL BANKS [6022] IRS NUMBER: 953764395 STATE OF INCORPORATION: CA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10QSB SEC ACT: 1934 Act SEC FILE NUMBER: 000-22733 FILM NUMBER: 97658720 BUSINESS ADDRESS: STREET 1: 11 GOLDEN SHORE CITY: LONG BEACH STATE: CA ZIP: 90802 BUSINESS PHONE: 3104911111 MAIL ADDRESS: STREET 1: 11 GOLDEN SHORE STREET 2: P O BOX 2040 CITY: LONG BEACH STATE: CA ZIP: 90802 FORMER COMPANY: FORMER CONFORMED NAME: HARBOR BANCORP / DATE OF NAME CHANGE: 19940520 FORMER COMPANY: FORMER CONFORMED NAME: HARBOR BANCORP DATE OF NAME CHANGE: 19920703 10QSB 1 FORM 10QSB FOR THE QUARTER ENDED JUNE 30, 1997 1 U.S. SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-QSB [X] QUARTERLY REPORT PURSUANT SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For quarter ended June 30, 1997 ------------------------------- [ ] TRANSITION REPORT PURSUANT SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transitions period from_________to______________ Commission file number 2-79912 ------------------------------ HARBOR BANCORP - -------------------------------------------------------------------------------- (Exact name of small business issuer as specified in its charter) California 95-3764395 - ------------------------------- ---------------- (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 11 Golden Shore Long Beach, CA 90802 - -------------------------------------------------------------------------------- (Address of principal executive offices) (562) 491-1111 - -------------------------------------------------------------------------------- (Issuer's telephone number) Not applicable - -------------------------------------------------------------------------------- (Former name, former address and former fiscal year, if changed since last report.) Check whether the issuer (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the past 12 months (or for such shorter periods 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 ------- ------- Check whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Securities Exchange Act of 1934 after the distribution of securities under a plan confirmed by a court. Yes No Other N/A ------ ------ -------- State the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practical date. Common stock, no par value - 1,415,214 shares as of June 30, 1997 - -------------------------------------------------------------------------------- 2 HARBOR BANCORP AND SUBSIDIARIES INDEX PART I. FINANCIAL INFORMATION ITEM 1. Financial Statements (Unaudited) Condensed consolidated balance sheets - June 30, 1997 and December 31, 1996 Condensed consolidated statements of income - three months ended June 30, 1997 and 1996; and six months ended June 30, 1997 and 1996 Condensed consolidated statements of cash flows six months ended June 30, 1997 and 1996 Notes to condensed consolidated financial statements - June 30, 1997 ITEM 2. Management's Discussion and Analysis of Financial Condition and Results of Operations PART II. OTHER INFORMATION ITEM 1. Legal Proceedings ITEM 2. Changes in Securities ITEM 3. Defaults Upon Service Securities ITEM 4. Submission of Matter to a Vote of Security Holders ITEM 5. Other Information ITEM 6. Exhibits and Reports on Form 8-K PART III. SIGNATURES 1 3 ITEM I: FINANCIAL INFORMATION HARBOR BANCORP AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS
June 30, December 31, 1997 1996 -------- -------- (Unaudited) (000's omitted) ASSETS ------ Cash and due from banks $ 20,083 $ 20,143 Federal funds sold and securities purchased under resale agreements 30,500 8,400 -------- -------- Cash and cash equivalents 50,583 28,543 Time certificates of deposit 495 495 Investment securities: Held to maturity(market value of $5,466,784 in 1997 and $6,094,994 in 1996) 5,428 6,065 Available for sale 5,791 18,788 Loans 148,671 143,988 Less allowance for loan losses 2,829 2,738 -------- -------- Net loans 145,842 141,250 Bank premises and equipment: Land 159 159 Buildings and improvements 4,271 4,249 Furniture, fixtures and equipment 3,664 3,572 -------- -------- 8,094 7,980 Less accumulated depreciation and amortization 6,311 6,132 -------- -------- 1,783 1,848 Other real estate 549 329 Accrued interest receivable 864 856 Other assets 1,518 1,929 -------- -------- Total assets $212,853 $200,103 ======== ========
(Continued) 2 4 HARBOR BANCORP AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Continued)
June 30, December 31, 1997 1996 --------- --------- (Unaudited) (000's omitted) LIABILITIES AND STOCKHOLDERS' EQUITY ------------------------------------ Deposits: Interest bearing $ 104,818 $ 90,442 Noninterest bearing 90,585 92,989 --------- --------- Total deposits 195,403 183,431 Accrued expenses and other liabilities 1,151 972 --------- --------- Total liabilities 196,554 184,403 Stockholders' equity: Common stock, no par value; 5,000,000 shares authorized; issued and out- standing, 1,415,214 shares in 1997 and 1996 13,963 13,963 Retained earnings 2,471 1,871 Unrealized losses on securities available for sale, net of tax (135) (134) --------- --------- Total stockholders' equity 16,299 15,700 --------- --------- Total liabilities and stockholders' equity $ 212,853 $ 200,103 ========= =========
See notes to unaudited consolidated financial statements. 3 5 HARBOR BANCORP AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
Six Months Ended Three Months Ended June 30, June 30, ---------------------- ---------------------- 1997 1996 1997 1996 ------ ------ ------ ------ (000's omitted, except per share data) Interest income: Interest and fees on loans $6,901 $6,099 $3,545 $3,074 Interest on U.S. government and agency obligations 315 758 154 354 Interest on obligations of states and political subdivisions 11 7 5 4 Interest on other investments 40 41 20 20 Interest on federal funds sold and securities purchased under agreements to resale 502 387 296 242 ------ ------ ------ ------ Total interest income 7,769 7,292 4,020 3,694 Interest expense: Interest on deposits 1,588 1,409 833 753 Interest on borrowed funds -- 4 -- -- ------ ------ ------ ------ Total interest expense 1,588 1,413 833 753 Net interest income 6,181 5,879 3,187 2,941 Provision for loan losses 435 444 285 248 Net interest income after provision for loan losses 5,746 5,435 2,902 2,693 Other operating income: Service charges on deposit accounts 466 486 245 226 Loan servicing fees and other fees and charges 99 112 48 78 ------ ------ ------ ------ Total other operating income 565 598 293 304
(Continued) 4 6 HARBOR BANCORP AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) (Continued)
Six Months Ended Three Months Ended June 30, June 30, ------------------------- ------------------------- 1997 1996 1997 1996 ---------- ---------- ---------- ---------- (000's omitted, except per share data) Noninterest expense: Salaries, wages and employee benefits 1,912 1,852 925 961 Occupancy expenses 1,069 1,100 531 559 Equipment expenses 160 207 78 101 Data processing expenses 266 300 133 147 Other operating expenses 1,660 1,834 876 841 ---------- ---------- ---------- ---------- Total noninterest expense 5,067 5,293 2,543 2,609 ---------- ---------- ---------- ---------- Income before taxes based on income 1,244 740 652 388 Provision for taxes based on income 467 279 251 154 ---------- ---------- ---------- ---------- Net income $ 777 $ 461 $ 401 $ 234 ========== ========== ========== ========== Weighted average number of common shares and common share equivalents 1,448,725 1,448,725 1,448,725 1,448,725 Earnings per share $ 0.54 $ 0.32 $ 0.28 $ 0.16 ========== ========== ========== ==========
See notes to unaudited consolidated financial statements. 5 7 HARBOR BANCORP AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
Six Months Ended June 30, ------------------------- 1997 1996 -------- -------- (000's omitted) Operating activities: Net income $ 777 $ 461 Adjustments to reconcile net income to net cash provided by operating activities: Provision for depreciation and amortization 219 244 Provision for loan losses 435 444 Increase in interest receivable (8) (157) Increase in interest payable 23 32 Other 528 438 -------- -------- Net cash provided by operating activities $ 1,974 $ 1,462 Investing activities: Proceeds from maturities, sales and calls of investment securities 18,624 16,504 Purchases of investment securities (4,991) (5,000) Net increase in loans (5,027) (3,023) Capital expenditures (114) (226) Other real estate (221) (1,097) -------- -------- Net cash provided by investing activities $ 8,271 $ 7,158
(Continued) 6 8 HARBOR BANCORP AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (Continued)
Six Months Ended June 30, -------------------------- 1997 1996 -------- -------- (000's omitted) Financing activities: Net increase in commercial and other demand deposits, savings and money market deposits and certificates of deposit $ 11,972 $ 3,400 Cash dividends paid (177) -- -------- -------- Net cash provided by financing activities $ 11,795 $ 3,400 Increase in cash and cash equivalents 22,040 12,020 Cash and cash equivalents at beginning of period 28,543 26,164 -------- -------- Cash and cash equivalents at end of period $ 50,583 $ 38,184 ======== ========
See notes to unaudited consolidated financial statements. 7 9 HARBOR BANCORP AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) June 30, 1997 1. Summary of Significant Accounting Policies: Basis of presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-QSB and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the six month period ended June 30, 1997 are not necessarily indicative of the results that may be expected for the year ending December 31, 1997. Certain reclassifications have been made in the 1996 financial statements to conform to the presentations used in 1997. The balance sheet on December 31, 1996 has been derived from the audited financial statements at that date. The accompanying notes are an integral part of these financial statements. Principles of consolidation Harbor Bancorp (the "Company") was formed on July 23, 1982. The unaudited condensed consolidated financial statements include all the accounts of the Company and its wholly-owned subsidiaries, Harbor Bank and Harbor Bank Properties. All intercompany accounts and transactions have been eliminated. Investment securities The Company adopted Statement of Financial Accounting Standard No. 115 "Accounting for Certain Investments in Debt and Equity Securities" as of January 1, 1994. 8 10 Investment securities held to maturity are securities which the Company has the positive intent and ability to hold until maturity. Accordingly, these securities are carried at amortized cost. Unrealized holding gains and losses are not recognized in the financial statements until realized or until a decline in fair value below cost is deemed to be other than temporary. Investment securities available for sale include debt securities and mutual funds. These securities are stated at fair value with unrealized holding gains and losses reflected as a separate component of stockholders' equity, net of income taxes. Gains and losses are determined on the specific identification method. Any decline in the fair value of the investments which is deemed to be other than temporary is charged against current earnings. Impaired loans The Company adopted SFAS No. 114, "Accounting by Creditors for Impairment of a Loan," as amended, effective January 1, 1995. This statement requires that impaired loans be measured based on the present value of expected future cash flows discounted at the loan's effective interest rates or the fair value of the underlying collateral, and specifies alternative methods for which there are credit concerns. For purposes of applying this standard, impaired loans have been defined as all non-accrual loans. The Company's policy for income recognition was not affected by adoption of the standard. The adoption of SFAS No. 114 did not have any effect on the total reserve for credit losses or related provision. Allowance for loan losses The allowance for loan losses represents management's evaluation of the quality of the loan portfolio. The allowance is maintained at a level considered to be adequate for potential loan losses based on management's assessment of various factors affecting the loan portfolio, which includes a review of problem loans, business conditions and the overall quality of the loan portfolio. The allowance is increased by the provision for loan losses charged to operations and reduced by loans charged off to the allowance, net of recoveries. Other Real Estate Other real estate ("ORE") is stated at the lower of cost or fair market value, net of estimated selling costs. 9 11 Income taxes Income tax expense is the current and deferred tax consequence, of events that have been recognized in the financial statements, as measured by the provisions of enacted tax law. Bank premises and equipment Bank premises and equipment are stated at cost, less accumulated depreciation and amortization. Depreciation and amortization are computed using the straight-line method over the estimated useful lives of the related assets which range from 10 to 30 years for buildings and improvement and 3 to 10 years for furniture, fixtures and equipment. Earnings per share Earnings per share was computed by dividing net income by the weighted average number of common stock and common stock equivalents (stock options) outstanding during each period. The number of shares used in the per share calculations for the periods ended June 30, 1997 and 1996 was 1,448,725. In February 1997, the Financial Accounting Standards Board issued Statement No. 128, "Earnings per Share", which is required to be adopted on December 31, 1997. At that time, the Company will be required to change the method currently used to compute earnings per share and to restate all prior periods. Under the new requirements for calculating primary earnings per share, the dilutive effect of stock options will be excluded. The impact for the second quarter ended June 30, 1997 and June 30, 1996 is $0.01 and $0.01 per share, respectively. 10 12 ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Harbor Bancorp's ("Company") performance during the first six months of 1997 shows improvement which is supported by overall improvement in the local and national economic environment. The purpose of the following discussion is to focus on the above mentioned performance and other information about the Company's financial condition and results of operations which is not otherwise apparent from the consolidated financial statements included in this quarterly report. Reference should be made to those statements and the condensed financial data presented herein for an understanding of the following discussion and analysis. Financial Condition During the first six months of 1997, the Company experienced a net increase in liquid assets. Cash and cash equivalents increased $22,040,000, or 77.22%, from $28,543,000 at December 31, 1996 to $50,583,000 at June 30, 1997. Investment securities declined $13,634,000, or 54.86%, from $24,853,000 at December 31, 1996 to $11,219,000 at June 30, 1997. This net increase in liquid assets is primarily a result of maintaining liquidity in the form of short term and overnight investments in anticipation of growth in loan volume in the remainder of 1997. During the second quarter of 1997, loan volume increased with loans at $148,671,000 at June 30, 1997 compared to loans at $143,988,000 at December 31, 1996. Loans increased $4,683,000, or 3.25%, as a result of the Company's decision to maintain a conservative posture with respect to lending in view of the current economic condition. Total assets of the Company increased from $200,103,000 at December 31, 1996 to $212,853,000 at June 30, 1997. This increase of $12,750,000, or 6.37%, in total assets occurred primarily in cash and cash equivalents. Effective January 1, 1994, the Company adopted the provisions of Statement of Financial Accounting Standards No. 115, "Accounting for Certain Investments in Debt and Equity Securities". As of June 30, 1997, the bank had $5,428,000 in securities classified as held to maturity and $5,791,000 in securities classified as available for sale. Substantially all of the Company's deposits are local, core deposits. The Company does not have any out-of-area brokered deposits included in the deposit base. Total deposits increased $11,972,000, or 6.52%, for the first six months of 1997. This is a result of an increase in interest bearing deposits which increased $14,376,000, or 15.9%, from $90,442,000 at December 31, 1996 to $104,818,000 at June 30, 1997. This increase in interest bearing deposits is primarily the result of an increase of 11 13 approximately $8,900,000 in short-term certificate of deposit for a single customer relationship. In addition, there was a decrease of noninterest bearing deposits of $2,404,000, or 2.59%, from $92,989,000 at December 31, 1996 to $90,585,000 at June 30, 1997. As a result of the Federal Deposit Insurance Corporation ("the FDIC") examination at December 31, 1993, the Bank and the Federal Deposit Insurance Corporation executed a Memorandum of Understanding ("FDIC Memorandum") dated August 3, 1994. As a result of an examination conducted by the FDIC as of January 8, 1996, the FDIC determined the Bank was in compliance with the terms of the FDIC Memorandum, and the FDIC removed the FDIC Memorandum on May 22, 1996. On January 3, 1995, the Bank and the Superintendent executed a Memorandum of Understanding ("Superintendent's Memorandum) as a result of an examination at December 31, 1993. As a result of a request made by the Board of Directors of Harbor Bank on May 28, 1996, the Superintendent determined that the Bank was in compliance with the terms of the Superintendent's Memorandum, and the Superintendent removed the Superintendent's Memorandum on June 12, 1996. As a result of an examination conducted by the Federal Reserve Bank of San Francisco ("FRB") as of March 31, 1994, the Company and the FRB executed a memorandum of Understanding (the "FRB Memorandum") dated October 25, 1994. Based on the Company's overall improved financial condition and the adoption of certain resolutions by the Company's Board of Directors, the FRB terminated the FRB Memorandum effective December 3, 1996. Liquidity and Interest Rate Sensitivity Management The primary functions of asset/liability management are to assure adequate liquidity and maintain an appropriate balance between interest sensitive earning assets and interest bearing liabilities. Liquidity management involves the ability to meet the cash flow requirements of customers who may be either depositors wanting to withdraw funds or borrowers who may need assurance that sufficient funds will be available to meet their credit needs. Interest rate sensitivity management seeks to avoid fluctuating interest margins and to enhance consistent growth of net interest income through periods of changing interest rates. 12 14 Historically, the overall liquidity of the Company has been enhanced by a significant aggregate amount of core deposits. As described in the analysis of financial condition, the Bank has not relied on large-denomination time deposits. To meet short-term liquidity needs, the Bank has maintained adequate balances in federal funds sold, certificates of deposits with other financial institutions and investment securities having maturities of five years or less. Liquid assets (cash, federal funds sold and securities purchased under agreements to resale, deposits in other financial institutions and investment securities) as a percent of total deposits, are 31.88% and 29.38% as of June 30, 1997 and December 31, 1996, respectively. The Bank's goal is to maintain federal funds sold at $7 to $10 million dollars on an average with minimum daily investments monitored closely. However, as part of management's liquidity plan for the second quarter of 1997, federal funds sold was maintained at higher than normal levels in anticipation of loan funding and to maximize yield on short-term investments due to the shape of the current yield curve. Deposits with other institutions and securities purchased under agreements to resale will be maintained as alternative short-term investment products. Interest rate sensitivity varies with different types of interest-earning assets and interest-bearing liabilities. Harbor Bank intends to maintain interest-earning assets, comprised primarily of both loans and investments, and interest-bearing liabilities, comprised primarily of deposits, maturing or repricing evenly in order to eliminate any impact from interest rate changes. In this way, both assets and liabilities can be substantially repriced simultaneously with interest rate changes. The impact of inflation on a financial institution differs significantly from that exerted on an industrial concern, primarily because its assets and liabilities consist primarily of monetary items. The relatively low proportion of the Company's fixed assets to total assets reduces both the potential of inflated earnings resulting from understated depreciation charges and the potential of significant understatement of absolute asset values. However, inflation does have a considerable indirect impact on banks, including increased loan demand, as it becomes necessary for producers and consumers to acquire additional funds to maintain the same levels of production, consumption and new investments. Inflation also frequently results in high interest rates which can affect both yields on earning assets and rates paid on deposits and other interest-bearing liabilities. The Company monitors inflation rates to insure that ongoing programs are compatible with 13 15 fluctuations in inflation and resultant changes in interest rates. Results of Operations The Company reported net income of $777,000, or $0.54 per share, for the six months ended June 30, 1997, compared to net income of $461,000, or $0.32 per share, for the same period in 1996. Net interest income is an effective measurement of how well Management has balanced the Company's interest rate sensitive assets and liabilities as well as optimizing the allocation of resources. Net interest income of $6,181,000 for the six months ended June 30, 1997, reflects an increase of $302,000 or 5.14%, from $5,879,000 for the same period of 1996. Rising interest rates and net earning assets, which increased from $177,736,000 at December 31, 1996 to $190,885,000 at June 30, 1997, are the primary reason for the improvement in net interest income. The Company recorded $435,000 in provision for loan losses during the first six months of 1997 compared to $444,000 for the six months ended June 30, 1996. The decrease in the provision for possible loan losses, despite an increase in loan volume, is a result of the overall improvement of the quality of the loan portfolio and anticipated decline in other real estate. During the first six months of 1997, the Company maintained a strict focus on controlling noninterest expense. The focus on noninterest expense control began with a corporate commitment in 1989 and, today, continues to be emphasized and enforced. As a result of this continued effort, total noninterest expense categories of salaries, wages and employee benefits, occupancy expense, equipment expense, data processing expense and other operating expense, decreased $226,000 or 4.30%, during the six months ended June 30, 1997 over the same period in 1996. Risk Elements The policy of Harbor Bank is that all loans that are past due for ninety (90) days must be placed on non-accrual status. At June 30, 1997, loans on non-accrual status were $3,210,000, or 2.16% of total loans, compared to $3,783,000, or 2.63%, at December 31, 1996. Accruing loans which are contractually past due ninety (90) days or more were $29,000 at June 30, 1997 compared to $170,000 at December 31, 1996. At June 30, 1997, the Company was not aware of information regarding performing loans which would cause them to have serious 14 16 doubts as to the ability of the borrowers to comply with loan repayment terms, nor are they aware of any trends which might have a material impact on future operating results. Capital Resources Management seeks to maintain a level of capital adequate to support anticipated asset growth and credit risks and to ensure that the Company is within established regulatory guidelines and industry standards. In 1996, stockholders' equity increased $1,143,192 due to retention of the Company's 1996 net income. The Company's capital plan for 1997 contemplates continued growth in stockholders' equity through the retention of net income. Minimum capital ratios required under the final 1994 risk-based capital regulations are 6.0% for Tier 1 Capital and 8.0% for Total Capital. At December 31, 1996 the Company had Tier 1 Capital of 10.33% and Total Capital of 11.58% and at June 30, 1997 the company had Tier 1 Capital of 10.62% and Total Capital of 11.87%. 15 17 HARBOR BANCORP AND SUBSIDIARIES PART II. OTHER INFORMATION ITEM 1. Legal Proceedings Except as noted below, due to the nature of their business, the Company, the Bank, and their subsidiaries are subject to legal actions threatened or filed which arise from the normal course of their business. Management believes that such litigation is incidental to the business of the Company and the Bank and the eventual outcome of all currently pending legal proceedings against the Bank will not be material to the Company's or the Bank's financial position or results of operations. The Bank has been named in a litigation matter between the State of California Department of Insurance and a certified public accounting firm concerning the public accounting firm's audit of a failed insurance company. At December 31, 1996, the Bank believed it had meritorious defenses, that it was covered by comprehensive general liability insurance and had accrued no liability for the matter. During the first quarter of 1997, the Bank was notified by its insurance carrier that it has presently declined insurance for this matter. No estimate can be made of the range of loss that is reasonably possible and no accrual has been made as of the date of this filing. ITEM 2. Changes in Securities None ITEM 3. Defaults Upon Service Securities None ITEM 4. Submission of Matter to a Vote of Security Holders None ITEM 5. Other Information None ITEM 6. Exhibits and Reports on Form 8-k Exhibit 27 - Financial Data Schedule 16 18 PART III. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant duly caused this report to be signed on its behalf by the undersigned thereto duly authorized. HARBOR BANCORP Dated: August 12, 1997 /s/ DALLAS E. HAUN ----------------------- -------------------------- DALLAS E. HAUN Vice President Dated: August 12, 1997 /s/ MELISSA LANFRE' ----------------------- -------------------------- MELISSA LANFRE' Vice President & CFO 17 EX-27 2 FINANCIAL DATA SCHEDULE
9 1,000 6-MOS DEC-31-1997 JAN-01-1997 JUN-30-1997 20,083 495 30,500 0 5,791 5,428 5,467 148,671 2,829 212,853 195,403 0 1,151 0 0 0 13,963 2,471 212,853 6,901 366 502 7,769 1,588 1,588 6,181 435 0 5,067 1,244 1,244 0 0 777 .55 .54 0 3,210 29 0 0 2,737 344 1 2,829 0 0 0
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