Hemlock Federal Financial, Inc.
Ticker:HMLK
Exchange:NASDAQ-National Market Oak Forest, IL
Industry:Financial (SIC Code 6035)

Offering Information
Type of Shares:Common Shares Filing Date:12/27/96
U.S. Shares:2,077,000 Offer Date:4/1/97
Non-U.S. Shares:0 Filing Price:$10.00
Primary Shares:2,077,000 Offer Price:$10.00
Secondary Shares:0 Gross Spread:$0.36
Offering Amount: $20,770,000 Selling:
Expenses: - Reallowance:
Shares Out After: -

Primary Underwriting Group
ManagerTierPhone
Charles Webb & CompanyLead Manager (614) 766-8400

Business Description
The Holding Company, Hemlock Federal Financial Corporation was recently formed by Hemlock Federal under the laws of Delaware for the purpose of becoming a savings and loan holding company which will own all of the outstanding capital stock. Hemlock Federal is a federally chartered mutual savings bank headquartered in Oak Forest, Illinois. Hemlock Federal was originally chartered in 1904. In 1959, Hemlock Federal converted to a federal charter. Hemlock Federal currently serves the financial needs of communities in its market area. Hemlock Federal has been, and intends to continue to be, an independent, community oriented, financial institution. Hemlock Federal's business involves attracting deposits from the general public and using such deposits, together with other funds, to originate primarily one- to four-family residential mortgages and, to a much lesser extent, multi-family, consumer and other loans primarily in the market area. At September 30, 1996, $47.7 million, or 88.7%, of the Bank's total loan portfolio consisted of one- to four-family residential mortgage loans. The Bank also invests in mortgage-backed and other securities and other permissible investments.

Competition
Hemlock Federal faces strong competition both in originating real estate loans and in attracting deposits. Competition in originating loans comes primarily from commercial banks, credit unions, mortgage bankers and other savings institutions, which also make loans secured by real estate located in the Bank's market area. Hemlock Federal competes for loans principally on the basis of the interest rates and loan fees it charges, the types of loans it originates and the quality of services it provides to borrowers. Competition for those deposits is principally from commercial banks, credit unions, mutual funds, securities firms and other savings institutions located in the same communities. The ability of the Bank to attract and retain deposits depends on its ability to provide an investment opportunity that satisfies the requirements of investors as to rate of return, liquidity, risk, convenient locations and other factors. The Bank competes for these deposits by offering competitive rates, convenient business hours and a customer oriented staff.

Use of Proceeds
The proceeds from the proposed offering will be used for general corporate purposes.

©1997 IPO Data Systems, Inc. - All rights reserved.