First Federal Posts Record First Quarter Earnings

Apr 19, 2001, 01:00 ET from First Federal Capital Corp

    LA CROSSE, Wis., April 19 /PRNewswire/ --
     First Federal Capital Corp (Nasdaq:   FTFC), the parent company of First
 Federal Savings Bank La Crosse - Madison, today reported record first quarter
 earnings of $5.9 million, up from the $5.3 million reported a year ago.
 Diluted income per share was $0.32, an increase of 10.3% over the $0.29 per
 diluted share in the first quarter of 2000.
     "Our mortgage banking revenues were substantially higher in the first
 quarter due to a lower interest rate environment," Jack C. Rusch, First
 Federal president and chief executive officer, said.  "Also contributing to
 record earnings was strong growth in retail fees from our community banking
 network, fueled by a 17% increase in deposits since March of last year."
     First quarter net interest income totaled $14.6 million, down 1% from a
 year ago.  The bank's average net interest margin was 2.59% during the
 quarter, compared to 2.98% a year earlier. Average interest-earning assets
 increased 13.6% compared to the first quarter of 2000 and totaled
 $2.3 billion.  "Our net interest margin was significantly impacted by last
 year's higher rate environment," reported Mr. Rusch.  "We expect lower rates
 in 2001 to have a favorable effect on our net interest margin the rest of the
 year."
     First quarter 2001 non-interest income was $10.7 million, versus
 $7.5 million in 2000.  Mortgage banking revenues from gains on sale of loans
 were $3.0 million, compared with $0.3 million for the same period in 2000.
 This component of mortgage banking revenue was partly offset by a $0.5 million
 decline in loan servicing fees, due principally to increased loan refinance
 activity.  "We are watching the value of our mortgage servicing asset very
 closely in this rate environment," Mr. Rusch stated.  "Further increases in
 loan prepayment expectations may require us to record additional accounting
 losses due to a lower estimated value for this asset."
     Retail banking fees contributed $5.8 million to non-interest income in the
 most recent three months, a 14% increase over the $5.1 million reported in the
 same quarter last year.
     Non-interest expense for the quarter was $15.7 million, up 13% from the
 $13.9 million recorded for the same three months in 2000.  "We have opened
 eleven new banking facilities since March of last year," noted Mr. Rusch.
 "These new offices, coupled with our annual employee merit increases, have had
 a significant impact on our operating expenses.  We are pleased that we have
 been able to incur the costs of this growth and still maintain the
 profitability of the Company."
     The annualized return on average equity (ROE) was 15.64% for the first
 quarter, compared to 16.07% for the same period a year ago.  Annualized return
 on average assets (ROA) for the quarter just ended was 0.99%, compared to
 1.00% in 2000.
     The company's assets totaled $2.4 billion at March 31, 2001, compared to
 $2.1 billion a year ago.  Deposits totaled $1.8 billion at quarter end, up 17%
 from March 31, 2000.  Asset quality remains strong with the ratio of non-
 performing assets to total assets just 0.21% at March 31, 2001, compared to
 0.11% a year ago.  The bank's loss allowance to total nonperforming assets
 stood at 166%.  Stockholders' equity totaled $151.7 million at March 31, 2001,
 or $8.28 per share.
     First Federal's banking subsidiary, First Federal Savings Bank La Crosse -
 Madison, is headquartered in La Crosse, Wis.  It operates 75 banking
 facilities throughout the state, among which are offices in Madison, Green
 Bay, Eau Claire, Manitowoc, Sheboygan, Oshkosh, Appleton, Kenosha, Racine,
 Beloit, Janesville, Lake Geneva, and Fond du Lac, along with offices in
 Rockford, Ill.
 
     Certain matters discussed in this press release are "forward-looking
 statements" intended to qualify for the safe harbors from liability as
 established by the Private Securities Litigation Reform Act of 1995.  Such
 forward-looking statements include words and phrases such as "will likely
 result," "are expected to," "will continue," "is anticipated," "estimate,"
 "project," "intends to," or similar expressions.  Similarly, statements that
 describe the Company's future plans, objectives or goals are also forward-
 looking statements.  The Company wishes to caution readers not to place undue
 reliance on any such forward-looking statements, which speak only as of the
 date of this press release, and to advise readers that various factors could
 affect the Company's financial performance and could cause actual results for
 future periods to differ materially from those anticipated or projected.  Such
 factors include, but are not limited to: (i) general market interest rates,
 (ii) general economic conditions, (iii) legislative/regulatory changes, (iv)
 monetary and fiscal policies of the U.S. Treasury and Federal Reserve, (v)
 changes in the quality or composition of the Company's loan and investment
 portfolios, (vi) demand for loan products, (vii) deposit flow, (viii)
 competition, (ix) demand for financial services in the Company's markets, and
 (x) changes in accounting principles, policies or guidelines.
 
 
     FIRST FEDERAL CAPITAL CORP
     STATEMENT OF FINANCIAL CONDITION
 
                                      March 31     December 31        March 31
                                          2001            2000            2000
     ASSETS
     Cash and due from banks       $45,299,318     $25,445,819     $41,704,333
     Interest-bearing deposits
      with banks                    76,435,568      13,054,493      12,630,934
     Investment securities
      available for sale,
      at fair value                    729,063         817,141         781,156
     Mortgage-backed and
      related securities:
       Available for sale, at
        fair value                 307,225,075     331,236,909     239,516,482
       Held for investment, at
        cost                        72,031,790      77,298,853      96,319,532
     Loans held for sale            56,569,096      22,973,887       5,286,944
     Loans held for investment,
      net                        1,739,663,673   1,772,476,651   1,641,969,634
     Federal Home Loan Bank stock   26,009,400      25,568,100      24,157,400
     Accrued interest
      receivable, net               19,015,198      19,701,004      16,772,017
     Office properties and
      equipment                     27,240,388      26,781,010      24,775,538
     Mortgage servicing rights, net 25,659,691      23,280,472      21,187,182
     Intangible assets              11,235,272      11,490,392      12,209,003
     Other assets                    3,031,267       2,600,835       1,710,808
         Total assets           $2,410,144,797  $2,352,725,566  $2,139,020,963
 
     LIABILITIES AND
      STOCKHOLDERS' EQUITY
     Deposit liabilities        $1,778,024,141  $1,699,252,162  $1,515,107,781
     Federal funds purchased                --      20,000,000      20,000,000
     Securities sold under
      agreements to repurchase     100,000,000     100,000,000      75,000,000
     Federal Home Loan Bank
      advances                     348,660,000     368,205,000     372,285,000
     Other borrowings                1,937,397       2,641,370       8,699,478
     Advance payments by borrowers
      for taxes and insurance        4,628,408       1,023,712       4,510,299
     Accrued interest payable        3,929,594       4,047,875       2,873,642
     Other liabilities              21,227,513      11,005,952      11,344,786
         Total liabilities       2,258,407,053   2,206,176,071   2,009,820,986
     Common stock, $.10 par value    1,994,163       1,994,163       1,994,163
     Additional paid-in capital     34,540,064      34,540,064      34,540,064
     Retained earnings             126,595,175     122,921,606     110,578,540
     Treasury stock, at cost       (15,377,352)    (15,127,142)    (15,936,683)
     Unearned restricted stock        (128,333)       (142,083)       (360,537)
     Accumulated non-owner
      adjustments to equity, net     4,114,027       2,362,887      (1,615,570)
         Total stockholders'
          equity                   151,737,743     146,549,495     129,199,977
          Total liabilities and
           stockholders' equity $2,410,144,797  $2,352,725,566  $2,139,020,963
 
     Actual number of shares
      outstanding at end of
      period, net of treasury stock 18,329,998      18,345,298      18,271,091
     Average shares outstanding
      used to compute:
        Diluted earnings per share  18,504,497      18,472,085      18,425,353
        Basic earnings per share    18,359,513      18,318,197      18,329,986
 
 
     FIRST FEDERAL CAPITAL CORP
     RESULTS OF OPERATIONS
     (Dollar amounts in thousands, except per share amounts)
 
                                                          Three Months
                                                     Mar               Mar
                                                     2001              2000
 
     Interest on loans                              $35,880           $30,656
     Interest on mortgage-backed and
      related securities                              6,602             5,848
     Interest and dividends on investments              738               576
     Total interest income                           43,221            37,079
     Interest on deposit liabilities                 21,440            15,656
     Interest on FHLB advances and other
      borrowings                                      7,219             6,685
     Total interest expense                          28,659            22,341
     Net interest income                             14,562            14,738
     Provision for loan losses                          394               192
     Net interest income after provision
      for loan losses                                14,167            14,546
     Retail banking fees and service charges          5,764             5,055
     Premiums and commissions                           747               701
     Loan servicing fees, net                           548             1,002
     Gain on sales of loans                           3,005               290
     Other income                                       626               498
     Total non-interest income                       10,690             7,545
     Compensation and employee benefits               9,536             8,411
     Occupancy and equipment                          2,231             1,887
     Communications, postage, and office supplies     1,225             1,053
     ATM and debit card transaction costs               740               707
     Advertising and marketing                          476               543
     Amortization of intangible assets                  258               257
     Other expenses                                   1,249             1,072
     Total non-interest expense                      15,714            13,930
     Income before income taxes                       9,144             8,161
     Income tax expense                               3,247             2,898
     Net income                                      $5,897            $5,262
 
 
     Per share information
     Diluted earnings per share                       $0.32             $0.29
     Basic earnings per share                          0.32              0.29
     Dividends paid per share                          0.11              0.09
 
 
     FIRST FEDERAL CAPITAL CORP
     SELECTED FINANCIAL DATA
 
                                                      Mar               Mar
                                                      2001              2000
 
     Stock price at end of period                    $14.00            $11.69
     High stock price during period                  $16.63            $14.63
     Low stock price during period                   $12.75            $10.44
     Book value per share at end of period            $8.28             $7.07
     Tangible book value per share at end
      of period                                       $7.67             $6.40
 
 
     Return on average assets                         0.99%             1.00%
     Return on average equity                        15.64%            16.07%
     Equity capital as % of total assets
      at end of period                                6.30%             6.04%
 
 
     Interest rate spread during period               2.05%             2.55%
     Net interest income as a percent of
      average earning assets during period            2.59%             2.98%
     Average interest-earning assets to average
      interest-bearing liabilities during period    110.54%           109.54%
 
 
     Yields on interest-earning assets
      during period:
     Single-family mortgage loans                     7.53%             7.18%
     Commercial real estate loans                     8.10%             7.86%
     Consumer loans                                   8.61%             8.33%
     Education loans                                  7.96%             8.17%
        Total loans                                   7.94%             7.67%
     Mortgage-backed and related securities           6.68%             6.76%
     Investment securities                            4.79%             5.14%
     Interest-bearing deposits with banks             5.36%             4.84%
     Other earning assets                             6.91%             6.95%
        Total interest-earning assets                 7.68%             7.49%
 
     Cost of interest-bearing liabilities
      during period:
     Regular savings accounts                         1.47%             1.48%
     Checking accounts                                0.82%             0.74%
     Money market accounts                            4.16%             3.81%
     Certificates of deposits                         6.35%             5.47%
        Total interest-bearing deposits               5.54%             4.67%
     FHLB advances                                    5.81%             5.66%
     Other borrowings                                 6.21%             6.02%
        Total interest-bearing liabilities            5.63%             4.94%
 
 
     Ratio of non-interest expense to
      average assets during period                    2.65%             2.66%
     Efficiency ratio during period *                61.21%            61.36%
     Banking facilities at end of period                75                64
 
     * Excludes amortization of intangible assets and gains on sales on
       investment securities and real estate investments, if any.
 
 
     FIRST FEDERAL CAPITAL CORP
     SELECTED FINANCIAL DATA
     (Dollar amounts in thousands)
 
                                                      Mar               Mar
                                                      2001              2000
 
     Activity in the allowance for loan
      losses during period:
     Balance at beginning of period                  $8,028            $7,624
     Provision for losses                               394               192
     Charge-offs:
       Single-family mortgage loans                      --                --
       Consumer loans                                  (197)             (130)
       Education loans                                  (17)              (12)
          Total loans charged-off                      (214)             (142)
        Recoveries (principally consumer loans)          15                18
          Charge-offs net of recoveries                (199)             (124)
     Balance at end of period                        $8,223            $7,692
 
     Net annualized charge-offs as a
      percentage of average loans outstanding          0.04%             0.03%
     Ratio of allowance to total loans
      held for investment at end of period             0.47%             0.47%
 
 
     Summary of non-performing assets at
      end of period:
     Non-accrual loans:
       Single-family mortgage loans                  $2,003              $217
       Commercial real estate loans                     227                --
         Total real estate loans                      2,230               217
       Consumer loans                                 1,215               710
         Total non-accrual loans                      3,445               927
     Real estate owned and in judgement               1,621             1,434
         Total non-performing assets                 $5,066            $2,361
 
     Ratio of non-accrual loans to loans
      held for investment at end of period             0.20%             0.06%
     Ratio of total non-performing assets
      to total assets at end of period                 0.21%             0.11%
     Ratio of total allowances for loan and real
      estate losses to total non-performing assets
      at end of period                                  166%              333%
 
 
     Portfolio of loans held for
      investment at end of period:
     First mortgage loans:
        Single-family real estate                  $662,527          $704,492
        Multi-family real estate                    241,154           215,503
        Non-residential real estate                 213,969           176,900
        Construction                                 75,902            69,198
     Second mortgage and home equity loans          253,388           218,114
     Education loans                                204,387           199,305
     Credit card loans                                5,722             4,606
     Automobile and other consumer loans             88,458            60,057
     Commercial business loans                          139               265
          Subtotal                                1,745,646         1,648,440
     Unearned discount, premiums, and net
      deferred loan fees and costs                    2,241             1,222
     Allowance for loan losses                       (8,223)           (7,692)
          Total loans held for investment        $1,739,664        $1,641,970
 
 
     FIRST FEDERAL CAPITAL CORP
     SELECTED FINANCIAL DATA
     (Dollar amounts in thousands)
 
                                                     Mar               Mar
                                                     2001              2000
 
     Deposit liabilities at end of period:
     Checking accounts:
        Non-interest bearing                       $201,781          $160,848
        Interest bearing                             75,910            75,582
     Money market accounts                          162,317           172,927
     Regular savings accounts                       111,187           113,387
     Time deposits                                1,226,829           992,364
          Total deposit liabilities              $1,778,024        $1,515,108
 
                                                   Mar 2001          Weighted
                                                   Balance         Average Rate
     Time deposits maturing within
        Three months                               $223,654             6.18%
        Four to six months                          111,398             6.32%
        Seven to twelve months                      794,913             6.58%
        More than twelve months                      96,864             5.72%
          Total time deposits                    $1,226,829             6.42%
 
     FHLB advances and all other
      borrowings maturing within
        Three months                               $126,900             6.03%
        Four to six months                           34,245             5.09%
        Seven to twelve months                       22,000             5.74%
        More than twelve months                     267,452             5.81%
          Total FHLB advances and all
           other borrowings                        $450,597             5.81%
 
 

SOURCE First Federal Capital Corp
    LA CROSSE, Wis., April 19 /PRNewswire/ --
     First Federal Capital Corp (Nasdaq:   FTFC), the parent company of First
 Federal Savings Bank La Crosse - Madison, today reported record first quarter
 earnings of $5.9 million, up from the $5.3 million reported a year ago.
 Diluted income per share was $0.32, an increase of 10.3% over the $0.29 per
 diluted share in the first quarter of 2000.
     "Our mortgage banking revenues were substantially higher in the first
 quarter due to a lower interest rate environment," Jack C. Rusch, First
 Federal president and chief executive officer, said.  "Also contributing to
 record earnings was strong growth in retail fees from our community banking
 network, fueled by a 17% increase in deposits since March of last year."
     First quarter net interest income totaled $14.6 million, down 1% from a
 year ago.  The bank's average net interest margin was 2.59% during the
 quarter, compared to 2.98% a year earlier. Average interest-earning assets
 increased 13.6% compared to the first quarter of 2000 and totaled
 $2.3 billion.  "Our net interest margin was significantly impacted by last
 year's higher rate environment," reported Mr. Rusch.  "We expect lower rates
 in 2001 to have a favorable effect on our net interest margin the rest of the
 year."
     First quarter 2001 non-interest income was $10.7 million, versus
 $7.5 million in 2000.  Mortgage banking revenues from gains on sale of loans
 were $3.0 million, compared with $0.3 million for the same period in 2000.
 This component of mortgage banking revenue was partly offset by a $0.5 million
 decline in loan servicing fees, due principally to increased loan refinance
 activity.  "We are watching the value of our mortgage servicing asset very
 closely in this rate environment," Mr. Rusch stated.  "Further increases in
 loan prepayment expectations may require us to record additional accounting
 losses due to a lower estimated value for this asset."
     Retail banking fees contributed $5.8 million to non-interest income in the
 most recent three months, a 14% increase over the $5.1 million reported in the
 same quarter last year.
     Non-interest expense for the quarter was $15.7 million, up 13% from the
 $13.9 million recorded for the same three months in 2000.  "We have opened
 eleven new banking facilities since March of last year," noted Mr. Rusch.
 "These new offices, coupled with our annual employee merit increases, have had
 a significant impact on our operating expenses.  We are pleased that we have
 been able to incur the costs of this growth and still maintain the
 profitability of the Company."
     The annualized return on average equity (ROE) was 15.64% for the first
 quarter, compared to 16.07% for the same period a year ago.  Annualized return
 on average assets (ROA) for the quarter just ended was 0.99%, compared to
 1.00% in 2000.
     The company's assets totaled $2.4 billion at March 31, 2001, compared to
 $2.1 billion a year ago.  Deposits totaled $1.8 billion at quarter end, up 17%
 from March 31, 2000.  Asset quality remains strong with the ratio of non-
 performing assets to total assets just 0.21% at March 31, 2001, compared to
 0.11% a year ago.  The bank's loss allowance to total nonperforming assets
 stood at 166%.  Stockholders' equity totaled $151.7 million at March 31, 2001,
 or $8.28 per share.
     First Federal's banking subsidiary, First Federal Savings Bank La Crosse -
 Madison, is headquartered in La Crosse, Wis.  It operates 75 banking
 facilities throughout the state, among which are offices in Madison, Green
 Bay, Eau Claire, Manitowoc, Sheboygan, Oshkosh, Appleton, Kenosha, Racine,
 Beloit, Janesville, Lake Geneva, and Fond du Lac, along with offices in
 Rockford, Ill.
 
     Certain matters discussed in this press release are "forward-looking
 statements" intended to qualify for the safe harbors from liability as
 established by the Private Securities Litigation Reform Act of 1995.  Such
 forward-looking statements include words and phrases such as "will likely
 result," "are expected to," "will continue," "is anticipated," "estimate,"
 "project," "intends to," or similar expressions.  Similarly, statements that
 describe the Company's future plans, objectives or goals are also forward-
 looking statements.  The Company wishes to caution readers not to place undue
 reliance on any such forward-looking statements, which speak only as of the
 date of this press release, and to advise readers that various factors could
 affect the Company's financial performance and could cause actual results for
 future periods to differ materially from those anticipated or projected.  Such
 factors include, but are not limited to: (i) general market interest rates,
 (ii) general economic conditions, (iii) legislative/regulatory changes, (iv)
 monetary and fiscal policies of the U.S. Treasury and Federal Reserve, (v)
 changes in the quality or composition of the Company's loan and investment
 portfolios, (vi) demand for loan products, (vii) deposit flow, (viii)
 competition, (ix) demand for financial services in the Company's markets, and
 (x) changes in accounting principles, policies or guidelines.
 
 
     FIRST FEDERAL CAPITAL CORP
     STATEMENT OF FINANCIAL CONDITION
 
                                      March 31     December 31        March 31
                                          2001            2000            2000
     ASSETS
     Cash and due from banks       $45,299,318     $25,445,819     $41,704,333
     Interest-bearing deposits
      with banks                    76,435,568      13,054,493      12,630,934
     Investment securities
      available for sale,
      at fair value                    729,063         817,141         781,156
     Mortgage-backed and
      related securities:
       Available for sale, at
        fair value                 307,225,075     331,236,909     239,516,482
       Held for investment, at
        cost                        72,031,790      77,298,853      96,319,532
     Loans held for sale            56,569,096      22,973,887       5,286,944
     Loans held for investment,
      net                        1,739,663,673   1,772,476,651   1,641,969,634
     Federal Home Loan Bank stock   26,009,400      25,568,100      24,157,400
     Accrued interest
      receivable, net               19,015,198      19,701,004      16,772,017
     Office properties and
      equipment                     27,240,388      26,781,010      24,775,538
     Mortgage servicing rights, net 25,659,691      23,280,472      21,187,182
     Intangible assets              11,235,272      11,490,392      12,209,003
     Other assets                    3,031,267       2,600,835       1,710,808
         Total assets           $2,410,144,797  $2,352,725,566  $2,139,020,963
 
     LIABILITIES AND
      STOCKHOLDERS' EQUITY
     Deposit liabilities        $1,778,024,141  $1,699,252,162  $1,515,107,781
     Federal funds purchased                --      20,000,000      20,000,000
     Securities sold under
      agreements to repurchase     100,000,000     100,000,000      75,000,000
     Federal Home Loan Bank
      advances                     348,660,000     368,205,000     372,285,000
     Other borrowings                1,937,397       2,641,370       8,699,478
     Advance payments by borrowers
      for taxes and insurance        4,628,408       1,023,712       4,510,299
     Accrued interest payable        3,929,594       4,047,875       2,873,642
     Other liabilities              21,227,513      11,005,952      11,344,786
         Total liabilities       2,258,407,053   2,206,176,071   2,009,820,986
     Common stock, $.10 par value    1,994,163       1,994,163       1,994,163
     Additional paid-in capital     34,540,064      34,540,064      34,540,064
     Retained earnings             126,595,175     122,921,606     110,578,540
     Treasury stock, at cost       (15,377,352)    (15,127,142)    (15,936,683)
     Unearned restricted stock        (128,333)       (142,083)       (360,537)
     Accumulated non-owner
      adjustments to equity, net     4,114,027       2,362,887      (1,615,570)
         Total stockholders'
          equity                   151,737,743     146,549,495     129,199,977
          Total liabilities and
           stockholders' equity $2,410,144,797  $2,352,725,566  $2,139,020,963
 
     Actual number of shares
      outstanding at end of
      period, net of treasury stock 18,329,998      18,345,298      18,271,091
     Average shares outstanding
      used to compute:
        Diluted earnings per share  18,504,497      18,472,085      18,425,353
        Basic earnings per share    18,359,513      18,318,197      18,329,986
 
 
     FIRST FEDERAL CAPITAL CORP
     RESULTS OF OPERATIONS
     (Dollar amounts in thousands, except per share amounts)
 
                                                          Three Months
                                                     Mar               Mar
                                                     2001              2000
 
     Interest on loans                              $35,880           $30,656
     Interest on mortgage-backed and
      related securities                              6,602             5,848
     Interest and dividends on investments              738               576
     Total interest income                           43,221            37,079
     Interest on deposit liabilities                 21,440            15,656
     Interest on FHLB advances and other
      borrowings                                      7,219             6,685
     Total interest expense                          28,659            22,341
     Net interest income                             14,562            14,738
     Provision for loan losses                          394               192
     Net interest income after provision
      for loan losses                                14,167            14,546
     Retail banking fees and service charges          5,764             5,055
     Premiums and commissions                           747               701
     Loan servicing fees, net                           548             1,002
     Gain on sales of loans                           3,005               290
     Other income                                       626               498
     Total non-interest income                       10,690             7,545
     Compensation and employee benefits               9,536             8,411
     Occupancy and equipment                          2,231             1,887
     Communications, postage, and office supplies     1,225             1,053
     ATM and debit card transaction costs               740               707
     Advertising and marketing                          476               543
     Amortization of intangible assets                  258               257
     Other expenses                                   1,249             1,072
     Total non-interest expense                      15,714            13,930
     Income before income taxes                       9,144             8,161
     Income tax expense                               3,247             2,898
     Net income                                      $5,897            $5,262
 
 
     Per share information
     Diluted earnings per share                       $0.32             $0.29
     Basic earnings per share                          0.32              0.29
     Dividends paid per share                          0.11              0.09
 
 
     FIRST FEDERAL CAPITAL CORP
     SELECTED FINANCIAL DATA
 
                                                      Mar               Mar
                                                      2001              2000
 
     Stock price at end of period                    $14.00            $11.69
     High stock price during period                  $16.63            $14.63
     Low stock price during period                   $12.75            $10.44
     Book value per share at end of period            $8.28             $7.07
     Tangible book value per share at end
      of period                                       $7.67             $6.40
 
 
     Return on average assets                         0.99%             1.00%
     Return on average equity                        15.64%            16.07%
     Equity capital as % of total assets
      at end of period                                6.30%             6.04%
 
 
     Interest rate spread during period               2.05%             2.55%
     Net interest income as a percent of
      average earning assets during period            2.59%             2.98%
     Average interest-earning assets to average
      interest-bearing liabilities during period    110.54%           109.54%
 
 
     Yields on interest-earning assets
      during period:
     Single-family mortgage loans                     7.53%             7.18%
     Commercial real estate loans                     8.10%             7.86%
     Consumer loans                                   8.61%             8.33%
     Education loans                                  7.96%             8.17%
        Total loans                                   7.94%             7.67%
     Mortgage-backed and related securities           6.68%             6.76%
     Investment securities                            4.79%             5.14%
     Interest-bearing deposits with banks             5.36%             4.84%
     Other earning assets                             6.91%             6.95%
        Total interest-earning assets                 7.68%             7.49%
 
     Cost of interest-bearing liabilities
      during period:
     Regular savings accounts                         1.47%             1.48%
     Checking accounts                                0.82%             0.74%
     Money market accounts                            4.16%             3.81%
     Certificates of deposits                         6.35%             5.47%
        Total interest-bearing deposits               5.54%             4.67%
     FHLB advances                                    5.81%             5.66%
     Other borrowings                                 6.21%             6.02%
        Total interest-bearing liabilities            5.63%             4.94%
 
 
     Ratio of non-interest expense to
      average assets during period                    2.65%             2.66%
     Efficiency ratio during period *                61.21%            61.36%
     Banking facilities at end of period                75                64
 
     * Excludes amortization of intangible assets and gains on sales on
       investment securities and real estate investments, if any.
 
 
     FIRST FEDERAL CAPITAL CORP
     SELECTED FINANCIAL DATA
     (Dollar amounts in thousands)
 
                                                      Mar               Mar
                                                      2001              2000
 
     Activity in the allowance for loan
      losses during period:
     Balance at beginning of period                  $8,028            $7,624
     Provision for losses                               394               192
     Charge-offs:
       Single-family mortgage loans                      --                --
       Consumer loans                                  (197)             (130)
       Education loans                                  (17)              (12)
          Total loans charged-off                      (214)             (142)
        Recoveries (principally consumer loans)          15                18
          Charge-offs net of recoveries                (199)             (124)
     Balance at end of period                        $8,223            $7,692
 
     Net annualized charge-offs as a
      percentage of average loans outstanding          0.04%             0.03%
     Ratio of allowance to total loans
      held for investment at end of period             0.47%             0.47%
 
 
     Summary of non-performing assets at
      end of period:
     Non-accrual loans:
       Single-family mortgage loans                  $2,003              $217
       Commercial real estate loans                     227                --
         Total real estate loans                      2,230               217
       Consumer loans                                 1,215               710
         Total non-accrual loans                      3,445               927
     Real estate owned and in judgement               1,621             1,434
         Total non-performing assets                 $5,066            $2,361
 
     Ratio of non-accrual loans to loans
      held for investment at end of period             0.20%             0.06%
     Ratio of total non-performing assets
      to total assets at end of period                 0.21%             0.11%
     Ratio of total allowances for loan and real
      estate losses to total non-performing assets
      at end of period                                  166%              333%
 
 
     Portfolio of loans held for
      investment at end of period:
     First mortgage loans:
        Single-family real estate                  $662,527          $704,492
        Multi-family real estate                    241,154           215,503
        Non-residential real estate                 213,969           176,900
        Construction                                 75,902            69,198
     Second mortgage and home equity loans          253,388           218,114
     Education loans                                204,387           199,305
     Credit card loans                                5,722             4,606
     Automobile and other consumer loans             88,458            60,057
     Commercial business loans                          139               265
          Subtotal                                1,745,646         1,648,440
     Unearned discount, premiums, and net
      deferred loan fees and costs                    2,241             1,222
     Allowance for loan losses                       (8,223)           (7,692)
          Total loans held for investment        $1,739,664        $1,641,970
 
 
     FIRST FEDERAL CAPITAL CORP
     SELECTED FINANCIAL DATA
     (Dollar amounts in thousands)
 
                                                     Mar               Mar
                                                     2001              2000
 
     Deposit liabilities at end of period:
     Checking accounts:
        Non-interest bearing                       $201,781          $160,848
        Interest bearing                             75,910            75,582
     Money market accounts                          162,317           172,927
     Regular savings accounts                       111,187           113,387
     Time deposits                                1,226,829           992,364
          Total deposit liabilities              $1,778,024        $1,515,108
 
                                                   Mar 2001          Weighted
                                                   Balance         Average Rate
     Time deposits maturing within
        Three months                               $223,654             6.18%
        Four to six months                          111,398             6.32%
        Seven to twelve months                      794,913             6.58%
        More than twelve months                      96,864             5.72%
          Total time deposits                    $1,226,829             6.42%
 
     FHLB advances and all other
      borrowings maturing within
        Three months                               $126,900             6.03%
        Four to six months                           34,245             5.09%
        Seven to twelve months                       22,000             5.74%
        More than twelve months                     267,452             5.81%
          Total FHLB advances and all
           other borrowings                        $450,597             5.81%
 
 SOURCE  First Federal Capital Corp