-----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, R4gv0kKs4QT4RXatxiMhFhztvcEw/5evtPKcVR+4uV4Qz3blxoiQ8iBefUnm+v7K wrDPS9FWHsvgUBJWSeltHg== 0000950164-98-000115.txt : 19980814 0000950164-98-000115.hdr.sgml : 19980814 ACCESSION NUMBER: 0000950164-98-000115 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19980630 FILED AS OF DATE: 19980813 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: HARDIN BANCORP INC CENTRAL INDEX KEY: 0000947220 STANDARD INDUSTRIAL CLASSIFICATION: SAVINGS INSTITUTION, FEDERALLY CHARTERED [6035] IRS NUMBER: 431719104 STATE OF INCORPORATION: DE FISCAL YEAR END: 0331 FILING VALUES: FORM TYPE: 10QSB SEC ACT: SEC FILE NUMBER: 000-26560 FILM NUMBER: 98686815 BUSINESS ADDRESS: STREET 1: 2ND & ELM STS STREET 2: P O BOX 608 CITY: HARDIN STATE: MO ZIP: 64035 BUSINESS PHONE: 8163984312 MAIL ADDRESS: STREET 1: 2ND & ELM STS STREET 2: P O BOX 608 CITY: HARDIN STATE: MO ZIP: 64035 10QSB 1 FORM 10-QSB SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-QSB [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OF 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 1998 OR [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OF 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to ___________ Commission File Number 0-26560 HARDIN BANCORP, INC. - -------------------------------------------------------------------------------- (Exact name of Registrant as specified in its Charter) Delaware 43-1719104 - ---------------------------------------- --------------------------------------- State or other jurisdiction of (I.R.S. Employer Identification Number) incorporation or organization 2nd and Elm Street, Hardin, Missouri 64035 - ---------------------------------------- --------------------------------------- (Address of principal executive offices) (Zip code) Registrant's telephone number, including area code: (660) 398-4312 Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 of 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. Yes (X) No ( ) Indicate the number of shares outstanding of each of the issuer's classes of common stock as of the latest practicable date. Class Outstanding at June 30, 1998 --------------------------- ---------------------------- Common stock, .01 par value 816,392 HARDIN BANCORP, INC. AND SUBSIDIARIES CONTENTS Page ---- PART I FINANCIAL INFORMATION Item 1. Unaudited Financial Statements Consolidated Balance Sheets........................................... 1 Consolidated Statements of Earnings................................... 2 Consolidated Statement of Stockholders' Equity........................ 3 Consolidated Statements of Cash Flows................................. 4-5 Notes to Consolidated Financial Statements............................ 6 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations................................................................ 7-9 PART II OTHER INFORMATION......................................................... 10 Signatures................................................................ 11 Hardin Bancorp, Inc. and Subsidiaries Consolidated Balance Sheets (Unaudited) (Audited) June 30, 1998 March 31, 1998 ------------- -------------- Assets ------ Cash ........................................... $ 621,990 $ 556,927 Interest bearing deposits ...................... 3,925,752 3,224,874 Investment securities: Held-to-maturity ............................. 10,000,000 10,000,000 Available-for-sale ........................... 29,754,833 22,656,010 Mortgage-backed securities: Held-to-maturity ............................. 10,395,906 10,995,511 Available-for-sale ........................... 7,888,106 8,019,725 Loans receivable, net .......................... 65,521,803 61,273,984 Accrued interest receivable on: Investment securities ........................ 451,471 359,601 Mortgage-backed securities ................... 127,932 133,459 Loans receivable ............................. 445,588 395,138 Real estate owned .............................. 0 0 Premises and equipment ......................... 1,865,546 1,725,383 Stock in Federal Home Loan Bank (FHLB) of Des Moines, at cost ....................... 1,975,000 1,475,000 Prepaid expenses and other assets .............. 346,378 276,492 ------------ ------------ Total assets ................................... $133,320,305 $121,092,104 ============ ============ Liabilities and Stockholders' Equity ------------------------------------ Liabilities: Deposits ..................................... $ 79,007,027 $ 76,884,462 Advances from borrowers for property taxes and insurance ........................ 426,456 264,317 Advances from FHLB ........................... 39,500,000 29,500,000 Accrued interest payable ..................... 66,400 56,149 Income taxes payable: Current .................................... 191,111 323,520 Deferred ................................... 31,923 15,000 Accrued expenses and other liabilities ....... 625,657 571,084 ------------ ------------ Total liabilities .............................. 119,848,574 107,614,532 ------------ ------------ Stockholders' equity: Common stock, $.01 par value; 3,500,000 shares authorized, 1,058,000 shares issued ........ 10,580 10,580 Serial preferred stock, $.01 par value; 500,000 shares authorized, none issued or outstanding ................................ 0 0 Additional paid in capital ................... 10,165,436 10,165,436 Retained earnings ............................ 7,560,919 7,482,320 Unrealized loss on available for sale securities, net ............................ (69,511) (98,326) Unearned employee stock ownership plan ....... (518,280) (518,280) Deferred recognition and retention plan ...... (304,074) (327,011) Treasury stock (241,608 and 234,440, shares at cost, respectively) ........................ (3,373,339) (3,237,147) ------------ ------------ Total stockholders' equity ..................... 13,471,731 13,477,572 ------------ ------------ Total liabilities and stockholders' equity ..... $133,320,305 $121,092,104 ============ ============ See accompanying notes to consolidated financial statements. 1 Hardin Bancorp, Inc. and Subsidiaries Consolidated Statements of Earnings For the Three Months Ended June 30, 1998 and 1997 (Unaudited) 1998 1997 ---------- ---------- Interest income: Loans receivable ............................. $1,307,251 $1,152,107 Mortgage-backed securities ................... 283,477 313,385 Investment securities ........................ 569,461 395,622 Other ........................................ 64,656 93,517 ---------- ---------- Total interest income .......................... 2,224,845 1,954,631 ---------- ---------- Interest expense: Deposits ..................................... 980,205 916,570 FHLB advances ................................ 458,054 291,951 ---------- ---------- Total interest expense ......................... 1,438,259 1,208,521 ---------- ---------- Net interest income ............................ 786,586 746,110 Provision for loan losses ...................... 15,000 39,000 ---------- ---------- Net interest income after provision for loan losses .............................. 771,586 707,110 ---------- ---------- Non-interest income: Service charges .............................. 77,103 24,632 Loan servicing fees .......................... 7,979 8,153 Gain on sale of loans held for sale .......... 14,998 2,484 Gain on sale of real estate owned ............ 0 4,105 Gain on sale of investments and mortgage-backed securities ................. 12,602 44,431 Other ........................................ 17,393 29,998 ---------- ---------- Total non-interest income ...................... 130,075 113,803 ---------- ---------- Non-interest expense: Compensation and benefits .................... 325,723 272,803 Occupancy and equipment ...................... 57,236 29,647 Federal insurance premiums ................... 11,942 11,013 Data processing .............................. 34,996 23,787 Real estate owned ............................ 0 1,043 Other ........................................ 183,533 116,692 ---------- ---------- Total non-interest expense ..................... 613,430 454,985 ---------- ---------- Earnings before income taxes ................... 288,231 365,928 Income tax expense ............................. 102,593 135,212 ---------- ---------- Net earnings ................................... $ 185,638 $ 230,716 ========== ========== Net earnings per share: Basic ........................................ $ 0.24 $ 0.29 Diluted ...................................... 0.23 0.28 ========== ========== See accompanying notes to consolidated financial statements. 2 Hardin Bancorp, Inc. and Subsidiaries Consolidated Statements of Stockholders' Equity For the Three Months Ended June 30, 1998 (Unaudited)
Unearned Unrealized Employee Additional Gain or (loss) Stock Total Common Paid-in Retained on Ownership Deferred Treasury Stockholders' Stock Capital Earnings Securities, net Plan RRP Stock Equity ------ ---------- -------- --------------- --------- -------- -------- ------------- Balance at March 31, 1998 .... $10,580 10,165,436 7,482,320 (98,326) (518,280) (327,011) (3,237,147) 13,477,572 Net earnings ................. 0 0 185,638 0 0 0 0 185,638 Change in net unrealized loss on securities available for sale, net of tax ....... 0 0 0 28,815 0 0 0 28,815 Repurchase of common stock ... 0 0 0 0 0 0 (136,192) (136,192) Amortization of recognition and retention plan ......... 0 0 0 0 0 22,937 0 22,937 Dividends declared ($.14 per share) ........... 0 0 (107,039) 0 0 0 0 (107,039) ------- ---------- --------- ------- -------- -------- ---------- ---------- Balance at June 30, 1998 ..... 10,580 10,165,436 7,560,919 (69,511) (518,280) (304,074) (3,373,339) 13,471,731 ======= ========== ========= ======= ======== ======== ========== ==========
See accompanying notes to consolidated financial statements. 3 Hardin Bancorp, Inc. and Subsidiaries Consolidated Statements of Cash Flows Three Months Ended June 30, 1998 and 1997 (Unaudited) 1998 1997 ------------ ----------- Operating Activities: Net Earnings ...................................... $ 185,638 230,716 Adjustments to reconcile net earnings to net cash provided by operating activities: Provision for losses on loans ................. 15,000 39,000 Depreciation .................................. 32,813 16,327 Premium accretion and amortization of discounts and deferred loan fees, net .... (162,154) 15,586 Net (gain)/loss on sale of loans and investment and mortgage-backed securities .............. (27,600) 0 Gain on real estate owned ..................... 0 (4,105) Proceeds from sale of loans ................... 393,580 0 Origination of loans held for sale ............ (842,830) 0 Amortization of deferred Recognition and Retention Plan (RRP) .................... 22,937 21,172 Changes in asset and liabilities: Interest receivable ......................... (136,793) 94,669 Other assets ................................ (69,886) 10,334 Accrued interest payable .................... 10,251 24,258 Accrued expense and other liabilities ....... 54,597 61,859 Income taxes payable ........................ (132,409) 87,668 ------------ ----------- Net cash (used in) provided by operating activities (656,856) 597,484 ------------ ----------- Investing Activities: Net increase in loans receivable ................ (4,270,943) (1,196,332) Proceeds from sales of loans .................... 468,870 0 Principal payments on mortgage-backed and related securities: Available-for-sale .......................... 393,686 254,883 Held-to-maturity ............................ 588,226 382,436 Purchase of investment securities available-for-sale ............................ (13,942,348) (3,148,453) Proceeds from maturities of investment securities Available-for-sale ............................ 6,000,000 4,000,000 Proceeds from sales of investment securities .. 816,833 98,537 Purchase of stock in FHLB of Des Moines ....... (500,000) (250,000) Proceeds from sales of real estate owned ...... 0 107,515 Purchase of office properties and equipment ... (172,976) (29,367) ------------ ----------- Net cash (used in) provided by investing activities $(10,618,652) 219,219 ------------ ----------- 4 Hardin Bancorp, Inc. and Subsidiaries Consolidated Statements of Cash Flows Three Months Ended June 30, 1998 and 1997 (Unaudited) 1998 1997 ------------ ----------- Financing Activities: Net increase in savings deposits ................ 2,122,565 3,965,127 Proceeds from FHLB advances ..................... 10,000,000 10,000,000 Repayments of FHLB advances ..................... 0 (10,000,000) Net increase in advances from borrowers for taxes and insurance ........................... 162,139 118,187 Payment of dividends ............................ (107,063) (85,936) Purchase of treasury stock ...................... (136,192) 0 ------------ ----------- Net cash provided by financing activities ......... 12,041,449 3,997,378 ------------ ----------- Increase in cash .................................. 765,941 4,814,081 Cash at beginning of period ....................... 3,781,801 4,265,909 ------------ ----------- Cash at end of period ............................. 4,547,742 9,079,990 ------------ ----------- Supplemental disclosure of cash flow information: Cash paid for: Interest ...................................... $ 1,428,008 1,184,263 Income taxes, net of refunds .................. $ 235,002 47,544 Noncash investing and financing: Dividends declared and payable .................. $ 114,295 95,483 See accompanying notes to consolidated financial statements. 5 HARDIN BANCORP, INC. AND SUBSIDIARIES Notes to Consolidated Financial Statements (Unaudited) (1) Basis of Presentation The accompanying unaudited consolidated financial statements of Hardin Bancorp, Inc. and subsidiaries have been prepared in accordance with instructions for Form 10-QSB. To the extent that information and footnotes required by generally accepted accounting principles for complete financial statements are contained in the audited financial statements included in the Holding Company's Annual Report for the year ended March 31, 1998, such information and footnotes have not been duplicated herein. In the opinion of management, all adjustments, consisting only of normal recurring accruals, which are necessary for the fair presentation of the interim financial statements have been included. The statement of earnings for the three month period ended June 30, 1998 are not necessarily indicative of the results which may be expected for the entire year. The March 31, 1998 consolidated balance sheet has been derived from the audited consolidated financial statements as of that date. (2) Earnings Per Share Basic earnings per share excludes dilution and is computed by dividing income available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted earnings per share includes the effect of potential dilutive common shares (stock options) outstanding during the period. All per share data has been restated to reflect the adoption of SFAS No. 128. For the three months ended June 30, 1998 the only difference between basic and diluted earnings per share lies in the computation of the weighted average shares outstanding. The diluted weighted average shares includes 36,350 shares as a result of the assumption that stock options granted by the Company had been exercised. (3) Comprehensive Income On April 1, 1998 the Company adopted SFAS No. 130, "Reporting Comprehensive Income" which requires the reporting of comprehensive income and its components. Comprehensive income is defined as the change in equity from transactions and other events and circumstances from non-owner sources and excludes investments by and distributions to owners. Comprehensive income includes net income and other items of comprehensive income meeting the above criteria. The Company's only component of other comprehensive income is the unrealized holding gains and losses on available for sale securities. For the three months ended June 30, -------------------------- 1998 1997 -------- -------- Net income ................................... $186,000 $231,000 Change in unrealized security loss, net ...... 32,000 110,000 -------- -------- Comprehensive ................................ $218,000 $341,000 -------- -------- 6 HARDIN BANCORP, INC. AND SUBSIDIARIES MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS GENERAL - ------- Hardin Bancorp, Inc. (the "Company") was incorporated under the laws of the state of Delaware to become a savings bank holding company with Hardin Federal Savings Bank (the "Bank") of Hardin, Missouri, as its subsidiary. The holding company was incorporated at the direction of the Board of Directors of the Bank, and on September 28, 1995, acquired all of the capital stock of the Bank upon its conversion from mutual to stock form (the "conversion"). Prior to the conversion, the holding company did not engage in any material operations. Hardin Federal Savings Bank was originally founded in 1888 as a Missouri chartered savings and loan association located in Hardin, Missouri. On March 21, 1995, the Bank's members voted to convert the Bank to a Federal mutual charter. The Bank conducts its business through its main office in Hardin, Ray County, and two full service branch offices located in Richmond, Ray County, and Excelsior Springs, Clay County, Missouri. Deposits are insured by the Federal Deposit Insurance Corporation (FDIC) to the maximum allowable. The Bank is principally engaged in the business of attracting retail savings deposits from the general public and investing those funds in first mortgage loans on owner occupied, single-family residential loans, commercial real estate loans, mortgage-backed securities, U.S. Government and agency securities, and insured interest bearing deposits. The Bank also originates consumer loans for the purchase of automobiles, home improvement, and home equity lines of credit. The most significant outside factors influencing the operations of the Bank and other financial institutions include general economic conditions, competition in the local market place and the related monetary and fiscal policies of agencies that regulate financial institutions. More specifically, the cost of funds primarily consisting of insured deposits is influenced by interest rates on competing investments and general market rates of interest, while lending activities are influenced by the demand for real estate financing and other types of loans, which in turn is affected by the interest rates at which such loans may be offered and other factors affecting loan demand and funds availability. The deposits of the Bank are insured by the Savings Association Insurance Fund (SAIF), which together with the Bank Insurance Fund (BIF), are the two insurance funds administered by the FDIC. FINANCIAL CONDITION - ------------------- Consolidated assets of Hardin Bancorp, Inc. were $133,320,305 as of June 30, 1998, as compared to $121,092,104 on March 31, 1998, an increase of $12,228,201. The increase was primarily funded by an increase in deposits of $2,122,565 and an increase in advances from the Federal Home Loan Bank of Des Moines in the amount of $10,000,000. The 10.1% growth rate of assets for the quarter is ahead of the Company's growth objectives. The funds were used to purchase investment securities, interest bearing deposits and to fund loan growth. Loans receivable, net, increased to $65,521,803 on June 30, 1998 from $61,273,984 on March 31, 1998, an increase of $4,247,819. Mortgage-backed securities decreased $731,224 to $18,284,012 on June 30, 1998, from $19,015,236 on March 31, 1998. The decrease in mortgage-backed securities and the increase in loans reflect the Bank's plan to increase the loan portfolio and decrease mortgage-backed securities. Cash, interest bearing deposits, and investment securities increased $7,864,764 from $36,437,811 on March 31, 1998, to $44,302,575 on June 30, 1998. The increase was primarily funded by an increase in savings deposits and FHLB advances. Deposits totaled $79,007,027 on June 30, 1998, an increase of $2,122,565 from $76,884,462 on March 31, 1998. The increase in deposits is primarily due to a successful special certificate of deposit promotion and the Bank's high performance checking account program. Stockholders' equity was $13,471,731 on June 30, 1998, compared to $13,477,572 on March 31, 1998. The small change in stockholders' equity was the result of an increase in retained earnings, which was offset by the acquisition of 7,168 shares of treasury stock at an aggregate purchase price of $136,192 or $19.00 per share. 7 RESULTS OF OPERATIONS - --------------------- Net earnings for the Company's first fiscal quarter ended June 30, 1998 were $185,638 compared to $230,716 for the comparable quarter in 1997. The decrease was due to an increase in non-interest expense associated primarily with the addition of employees to staff the new Richmond branch office and other additional expenses related to the opening of the facility on March 31, 1998. Basic earnings per share for the quarter ended June 30, 1998 were $0.24 per share while diluted earnings per share were $0.23. Basic earnings per share were calculated based on 763,500 average shares outstanding and diluted earnings per share were calculated based on 800,222 average shares outstanding. Basic earnings per share for the comparable quarter ended June 30, 1997 were $0.29 per share while diluted earnings per share were $0.28. Basic earnings per share were calculated based on 795,680 average shares outstanding and diluted earnings per share were calculated based on 812,574 average shares outstanding. Net interest income after provision for loan losses for the quarter ended June 30, 1998 was $771,586 compared to $707,110 for the quarter ended June 30, 1997, an increase of $64,476. This increase was a result of interest income increasing $270,214 from $1,954,631 in 1997 to $2,224,845 in 1998 while interest expense increased $229,738 from $1,208,521 in 1997 to $1,438,259 in 1998. The increases in interest income and interest expense are both due to increases in the average balance of interest-earning assets and interest-bearing liabilities. Non-interest income increased from $113,803 for the quarter ended June 30, 1997 to $130,075 for the quarter ended June 30, 1998. The increase was due to higher service charge income and gains realized on the sale of loans partially offset by lower gains on the sale of real estate owned, investments and mortgage-backed securities. Other non-interest income declined due to reduced income generated by the Bank's service corporation. The Company's non-interest expense for the three months ended June 30, 1998 was $613,430 compared to $454,985 for the comparable quarter in 1997. The increase was due to higher compensation and benefits expense, higher data processing expense, higher occupancy and equipment expense, and other non-interest expense primarily a result of the new branch office in Richmond and costs related to the Bank's high performance checking program. PROVISION FOR LOAN LOSSES - ------------------------- The provision for loan losses is based on the periodic analysis of the loan portfolio by management. In establishing the provision, management considers numerous factors including general economic conditions, loan portfolio condition, prior loss experience, and independent analysis. The provision for loan losses for the three months ended June 30, 1998, was $15,000. Based upon the analysis of the addition to established allowances and the composition of the loan portfolio, management concluded that the allowance is adequate. While current economic conditions in the Bank's market are stable, future conditions will dictate the level of future allowances for losses on loans. NONPERFORMING ASSETS - -------------------- On June 30, 1998, non-performing assets were $180,754 compared to $231,577 on March 31, 1998. On June 30, 1998, the Bank's allowance for loan losses was $262,710, or 145% of non-performing assets compared to $247,710, or 107% on March 31, 1998. Loans are considered non-performing when the collection of principal and/or interest is not probable, or in the event payments are more than 90 days delinquent. The allowance for loan losses was .40% of total loans as of June 30, 1998 and at March 31, 1998. 8 CAPITAL RESOURCES - ----------------- The Bank is subject to three capital to asset requirements in accordance with Office of Thrift Supervision (OTS) regulations. The following table is a summary of the Bank's regulatory capital requirements versus actual capital as of June 30, 1998. Actual Required Excess Amount/Percent Amount/Percent Amount/Percent -------------- -------------- -------------- Tangible Capital ........... $11,643/08.82% $2,329/2.00% $9,314/06.82% Core Leverage Capital ...... $11,643/08.82% $4,657/4.00% $6,986/04.82% Risk-based Capital ......... $11,906/21.68% $4,392/8.00% $7,514/13.68% LIQUIDITY - --------- The Bank's principal sources of funds are deposits, principal and interest payments on loans, deposits in other insured institutions, and investment securities. While scheduled loan repayments and maturing investments are relatively predictable, deposit flows and early loan payments are more influenced by interest rates, general economic conditions and competition. Additional sources of funds may be obtained from the Federal Home Loan Bank of Des Moines by utilizing numerous available products to meet funding needs. The Bank is required to maintain minimum levels of liquid assets as defined by regulations. The required percentage is currently four percent of net withdrawable savings deposits and borrowings payable on demand or in one year or less. The Bank has maintained its liquidity ratio at levels exceeding the minimum requirement. The eligible liquidity ratio at June 30, 1998 was 48.21%. In light of the competition for deposits, the Bank may utilize the funding sources of the Federal Home Loan Bank of Des Moines (FHLB) to meet loan demand in accordance with the Bank's growth plans. The wholesale funding sources may allow the Bank to obtain a lower cost of funding and create a more efficient liability match to the respective assets being funded. For purposes of the cash flows, all short-term investments with a maturity of three months or less at the date of purchase are considered cash equivalents. Cash and cash equivalents for the periods ended June 30, 1998 and 1997 were $4,547,742 and $9,079,990, respectively. The decrease was primarily due to an increase in net cash used in investing activities. Net cash provided by financing activities increased from $3,997,378 for the three months ended June 30, 1997 compared to $12,041,449 for the three months ended June 30, 1998. RECENT ACCOUNTING DEVELOPMENTS - ------------------------------ The Financial Accounting Standards Board (FASB) issued SFAS No. 133, Accounting for Derivative Instruments and Hedging Activities, in June 1998. SFAS No. 133 establishes accounting and reporting standards for derivative instruments, including certain derivative instruments embedded in other contracts, and for hedging activities. It requires that an entity recognize all derivatives as either assets or liabilities in the statement of financial position and measure those instruments at fair value. This statement is effective for all fiscal quarters of fiscal years beginning after June 15, 1999. Management believes adoption of SFAS No. 133 will not have a material effect on the Company's financial position or results of operations, nor will adoption require additional capital resources YEAR 2000 COMPLIANCE - -------------------- The Company utilizes and is dependent upon data processing systems and software to conduct its business. The data processing systems and software include those developed and maintained by the Company's data processor and purchased software which is run on in-house computer networks. In 1997 the Company initiated a review and assessment of all hardware and software to confirm that it will function properly in the year 2000. The Company's data processor and those vendors, which have been contacted, have indicated that their hardware and/or software will be Year 2000 compliant by the end of 1998. This will allow time for the testing for compliance. While there may be some expenses incurred during the next two years, it is not expected to have a material effect on the Company's consolidated financial condition or results of operations. 9 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 --------------------------------------------------- None. Item 5. Other Information ----------------- None. Item 6. Exhibits and Reports on Form 8-K -------------------------------- Exhibits: 27 -- Financial Data Schedule Reports on Form 8-K: None. 10 SIGNATURES Pursuant to the requirement 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. HARDIN BANCORP, INC. Registrant Date: August 14, 1998 Robert W. King --------------- ----------------------------------- Robert W. King, President and Chief Executive Officer (Duly Authorized Officer) Date: August 14, 1998 Karen K. Blankenship --------------- ----------------------------------- Karen K. Blankenship, Senior Vice President and Secretary (Principal Accounting Officer) 11 EX-27 2 FINANCIAL DATA SCHEDULE
9 1,000 3-MOS MAR-31-1999 JUN-30-1998 622 3,926 0 0 47,649 10,396 10,378 65,785 263 133,326 79,007 39,500 1,344 0 0 0 11 13,464 133,326 1,307 853 65 2,225 980 1,438 787 15 13 613 288 288 0 0 186 .24 .23 7.17 181 0 0 490 248 15 0 263 167 0 96
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