Notes to Consolidated Financial Statements
for the Three Years in the Period Ended June 30, 1999

13. EMPLOYEE BENEFIT PLANS

The Bank participates in a noncontributory multi-employer pension plan covering all qualified employees. The plan is administered by the trustees of the Financial Institutions Retirement Fund. There is no separate valuation of the plan benefits nor segregation of plan assets specifically for the Bank, because the plan is a multi-employer plan and separate actuarial valuations are not made with respect to each employer. However, as of June 30, 1998, the latest actuarial valuation, the total plan assets exceeded the actuarially determined value of accrued benefits.

Supplemental Retirement Program

The Bank has entered into supplemental retirement agreements for certain officers and directors. Benefits under these agreements are generally paid over a 15 year period. The present value of the benefit to be paid is accrued over the active period of employment of individual participants. The amount of benefit expense for fiscal years 1999, 1998 and 1997, was $155,000, $153,000 and $350,000, respectively.

401(k) Plan

The Bank has an employee thrift plan established for substantially all full-time employees. The Bank has elected to make matching contributions equal to 50% of the employee contributions up to a maximum of 1.5% of an individual's total eligible salary. The Bank contributed $88,000, $85,000 and $75,000 during fiscal years 1999, 1998 and 1997, respectively.