Harrington Financial Group, Inc.
Ticker: HFGI 7300 College Boulevard, Suite 430
Exchange: NASDAQ-National Market Overland Park, Kansas
Industry: Financial (913) 451-1566

Type of Shares:Common Shares Filing Date:2/20/96
U.S. Shares:1,100,000 Offer Date:5/6/96
Non-U.S. Shares:0 Filing Range:$9.00 - $11.00
Primary Shares:1,100,000 Offer Price:$10.00
Secondary Shares:0 Gross Spread:$0.70
Offering Amount: $11,000,000 Selling:$0.31
Expenses:$485,000 Reallowance:$0.10
Shares Out After:3,091,738

ManagerTierPhone
Stifel, Nicolaus & Company, IncorporatedLead Manager (314) 342-2000
NatCity Investments, Inc.Co-manager

Auditor: Deloitte & Touche
Audited
Income
Latest
Unaudited
Income
Prior
Unaudited
Income
Balance
Sheet
6/30/95 12/31/95 12/31/94 12/31/95
Revenue:$18.99$11.50$7.96Assets:$307.41
Net Income:$1.85$0.54$0.77Liabilities:$296.40
EPS:$1.20$0.28$0.54Equity:$11.01

Note: Dollar amounts are in U.S. millions; Audited figures expressed as full year,
unaudited figures are partial year

Business Description
The company is an Indiana-chartered, registered thrift holding company for Harrington Bank, FSB. The bank, which was originally organized in 1889, is a federally chartered savings bank which conducts business through three full service offices located in Carmel and Fishers, Indiana, both suburbs of Indianapolis, and Richmond, Indiana. The company's business consists primarily of attracting deposits and utilizing borrowings and other funding sources to originate single family residential loans and acquire mortgage backed and related securities. While the company's focus is to expand its portfolio of originated mortgage loans, over 75% of its assets currently consists of purchased mortgaged backed and related securities. The company was organized in March 1988 by certain principals of Smith Breeden Associates, Inc. for the sole purpose of acquiring the bank. The bank was purchased with the intention of expanding the bank's mortgage and investment operations and improving the bank's return on equity by utilizing Smith Breeden's asset and liability management expertise.

Use of Proceeds
Proceeds from the offering will be used to increase the capital base of the bank, which will allow the company to increase its investment in mortgage-backed and related securities as well as the origination of single-family residential loans, the balance of proceeds will be used for general corporate purposes.

Last updated: 10/28/96

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