UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
 Washington, DC 20549
 FORM 10-Q
 (Mark one)
 þ
    
    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 For the quarterly period ended December 31, 2010
 OR
 o
    
    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 For the transition period from ______________ to _____________
 Commission file number: 0-54238
 EUREKA
FINANCIAL CORP.
  Maryland
    
    26-3671639(State or other jurisdiction of incorporation or 
organization)
    
    (I.R.S. Employer Identification No.)3455 Forbes Avenue, Pittsburgh, Pennsylvania
    
    15213(Address of principal executive offices)
    
    (Zip Code)
 (412) 681-8400
 (Registrants telephone number, including area code)
 Not Applicable
 (Former name, former address and former fiscal year, if changed since last report)
 o þ
 o o
  Large accelerated filer o
    

Accelerated
filer o
    

Non-accelerated filer o
(Do not check if a smaller reporting company)
    

Smaller
reporting company þ
 o þ




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##### 



EXPLANATORY NOTE




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##### 



EUREKA FINANCIAL CORP.
 Table of Contents
 PageNumberPART I  FINANCIAL INFORMATIONItem 1: Financial StatementsConsolidated Balance Sheets as of December 31, 2010 and
September 30, 2010 (unaudited)
    
    1Consolidated Statements of Income for the Three Months Ended
December 31, 2010 and 2009 (unaudited)
    
    2Consolidated Statement of Changes in Stockholders Equity for the
Three Months Ended December 31, 2010 (unaudited)
    
    3Consolidated Statements of Cash Flows for the Three Months Ended
December 31, 2010 and 2009 (unaudited)
    
    4Notes to Consolidated Financial Statements (unaudited)
    
    5Item 2: Managements Discussion and Analysis of
Financial Condition and Results of Operations
    
    19Item 3: Quantitative and Qualitative Disclosures About Market Risk
    
    24Item 4: Controls and Procedures
    
    24PART II  OTHER INFORMATIONItem 1: Legal Proceedings
    
    25Item 1A: Risk Factors
    
    25Item 2: Unregistered Sales of Equity Securities and Use of Proceeds
    
    25Item 3: Defaults Upon Senior Securities
    
    25Item 4: (Removed and Reserved)
    
    25Item 5: Other Information
    
    25Item 6: Exhibits
    
    25SIGNATURES




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##### 



PART I. FINANCIAL INFORMATION
 
 Item 1.
    
    Financial Statements
 EUREKA FINANCIAL CORP. AND SUBSIDIARY
 
 Consolidated Balance Sheets
 (unaudited)
 December 31,
    
    
    September 30,2010
    
    
    2010Assets:Cash and due from banks
    
    $
    944,618
    
    
    $
    886,456Interest-bearing deposits in other banks
    
    
    9,321,668
    
    
    
    10,763,745Cash and cash equivalents
    
    
    10,266,286
    
    
    
    11,650,201Investment securities held to maturity (fair
market value of $14,329,150 and $10,522,353,
respectively)
    
    
    14,727,806
    
    
    
    10,482,550Mortgage-backed securities, available for sale
    
    
    36,591
    
    
    
    38,595Federal Home Loan Bank stock, at cost
    
    
    756,500
    
    
    
    796,400Loans receivable, net of allowance for loan
losses of $922,438 and $905,038, respectively
    
    
    98,946,154
    
    
    
    98,033,540Premises and equipment, net
    
    
    1,322,941
    
    
    
    1,360,233Deferred tax asset, net
    
    
    1,861,298
    
    
    
    2,018,594Accrued interest receivable and other assets
    
    
    3,066,721
    
    
    
    2,929,470Total Assets
    
    $
    130,984,297
    
    
    $
    127,309,583Liabilities and Stockholders EquityDeposit Accounts:Non-interest bearing
    
    $
    2,686,958
    
    
    $
    3,417,157Interest bearing
    
    
    112,532,393
    
    
    
    107,626,407Total Deposits
    
    
    115,219,351
    
    
    
    111,043,564Advances from borrowers for taxes and insurance
    
    
    683,760
    
    
    
    429,816FHLB advances
    
    
    
    
    
    
    1,000,000Accrued interest payable and other liabilities
    
    
    787,098
    
    
    
    706,879Total Liabilities
    
    
    116,690,209
    
    
    
    113,180,259Total Commitments and Contingencies
    
    
    
    
    
    
    Stockholders Equity:Common stock, $0.10 par value; 4,000,000 shares
authorized; 1,377,810 shares issued; 1,261,231
shares outstanding
    
    
    137,781
    
    
    
    137,781Paid-in capital
    
    
    6,348,745
    
    
    
    6,348,745Retained earnings  substantially restricted
    
    
    9,274,312
    
    
    
    9,111,556Accumulated other comprehensive income
    
    
    2,105
    
    
    
    9715,762,943
    
    
    
    15,598,179Treasury stock, 116,579 shares at cost
    
    
    (1,468,855
    )
    
    
    (1,468,855
    )Total Stockholders Equity
    
    
    14,294,088
    
    
    
    14,129,324Total Liabilities and Stockholders Equity
    
    $
    130,984,297
    
    
    $
    127,309,583
 The accompanying notes are an integral part of these consolidated financial statements.
 1




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##### 



EUREKA FINANCIAL CORP. AND SUBSIDIARY
 
 Consolidated Statements of Income
 (unaudited)
 Three Months EndedDecember 31,2010
    
    
    2009Interest IncomeLoans
    
    $
    1,499,175
    
    
    $
    1,488,603Investment securities and other interest-earning assets:Taxable
    
    
    101,105
    
    
    
    25,451Tax exempt
    
    
    7,302
    
    
    
    11,991Mortgage-backed securities
    
    
    669
    
    
    
    1,019Total Interest Income
    
    
    1,608,251
    
    
    
    1,527,064Interest ExpenseDeposits
    
    
    478,850
    
    
    
    529,612FHLB advances
    
    
    7,259
    
    
    
    15,022Total Interest Expense
    
    
    486,109
    
    
    
    544,634Net Interest Income
    
    
    1,122,142
    
    
    
    982,430Provision for Loan Losses
    
    
    17,400
    
    
    
    5,000Net Interest Income after Provision for Loan Losses
    
    
    1,104,742
    
    
    
    977,430Non-Interest IncomeFees on NOW accounts
    
    
    8,462
    
    
    
    10,598Other income
    
    
    10,172
    
    
    
    7,265Total Non-Interest Income
    
    
    18,634
    
    
    
    17,863Non-Interest ExpensesSalaries and benefits
    
    
    434,195
    
    
    
    373,981Occupancy
    
    
    90,381
    
    
    
    84,461Computer
    
    
    46,545
    
    
    
    42,181Legal and accounting
    
    
    52,708
    
    
    
    52,034Donations
    
    
    1,300
    
    
    
    1,225FDIC insurance premiums
    
    
    37,353
    
    
    
    15,938Other
    
    
    48,934
    
    
    
    46,738Total Non-Interest Expenses
    
    
    711,416
    
    
    
    616,558Income before Income Tax Provision
    
    
    411,960
    
    
    
    378,735Income Tax Provision
    
    
    169,555
    
    
    
    144,400Net Income
    
    $
    242,405
    
    
    $
    234,335Earnings per Common Share  Basic and Diluted
    
    $
    0.19
    
    
    $
    0.19
 The accompanying notes are an integral part of these consolidated financial statements.
 2




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##### 



EUREKA FINANCIAL CORP. AND SUBSIDIARY



Consolidated Statement of Changes in Stockholders Equity
(unaudited)
 AccumulatedOtherCommon
    
    
    Paid-In
    
    
    Retained
    
    
    Comprehensive
    
    
    TreasuryStock
    
    
    Capital
    
    
    Earnings
    
    
    Income
    
    
    Stock
    
    
    TotalBalance at September 30, 2010
    
    $
    137,781
    
    
    $
    6,348,745
    
    
    $
    9,111,556
    
    
    $
    97
    
    
    $
    (1,468,855
    )
    
    $
    14,129,324Comprehensive income:Net income
    
    
    
    
    
    
    
    
    
    
    242,205
    
    
    
    
    
    
    
    
    
    
    
    242,205Other comprehensive income:Change in net unrealized
gains on available for
sale securities, net of
deferred income tax of
$1,231
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2,008
    
    
    
    
    
    
    
    2,008Total Comprehensive Income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    244,413Dividends on common stock
($.15 per share)
    
    
    
    
    
    
    
    
    
    
    (79,649
    )
    
    
    
    
    
    
    
    
    
    
    (79,649
    )Balance at December 31, 2010
    
    $
    137,781
    
    
    $
    6,348,745
    
    
    $
    9,274,312
    
    
    $
    2,105
    
    
    $
    (1,468,855
    )
    
    $
    14,294,088
 The accompanying notes are an integral part of these consolidated financial statements.
 3




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##### 



EUREKA FINANCIAL CORP. AND SUBSIDIARY


Consolidated Statements of Cash Flows
(unaudited)
 Three Months EndedDecember 31,2010
    
    
    2009Cash Flows from Operating ActivitiesNet income
    
    $
    242,405
    
    
    $
    234,335Adjustments to reconcile net income to net cash provided
by operating activities:Depreciation of premises and equipment
    
    
    41,793
    
    
    
    43,576Provision for loan losses
    
    
    17,400
    
    
    
    5,000Net accretion/amortization of discounts and premiums on
securities and unamortized loan fees and costs
    
    
    4,734
    
    
    
    131Deferred tax expense
    
    
    156,065
    
    
    
    (Increase) decrease in accrued interest receivable
    
    
    (35,775
    )
    
    
    31,045(Increase) in other assets
    
    
    (101,476
    )
    
    
    (638,826
    )Decrease in accrued interest payable
    
    
    (17,221
    )
    
    
    (11,123
    )Increase in other liabilities
    
    
    97,440
    
    
    
    141,231Net Cash Provided by (Used in) Operating Activities
    
    
    405,365
    
    
    
    (194,631
    )Cash Flows from Investing ActivitiesProceeds from maturities and redemptions of investment securities
held to maturity
    
    
    1,250,000
    
    
    
    Purchase of investment securities held to maturity
    
    
    (5,500,000
    )
    
    
    (500,000
    )Redemption of FHLB stock
    
    
    39,900
    
    
    
    Net loans made to customers
    
    
    (1,065,195
    )
    
    
    (1,392,850
    )Net decrease in commercial leases
    
    
    135,181
    
    
    
    570,071Net paydowns in mortgage-backed securities
    
    
    5,252
    
    
    
    5,089Premises and equipment expenditures
    
    
    (4,500
    )
    
    
    (5,331
    )Net Cash Used in Investing Activities
    
    
    (5,139,362
    )
    
    
    (1,323,021
    )Cash Flows from Financing ActivitiesNet increase in deposit accounts
    
    
    4,175,787
    
    
    
    7,977,230Net increase in advances from borrowers for taxes and insurance
    
    
    253,944
    
    
    
    220,644Payment of long term FHLB advances
    
    
    (1,000,000
    )
    
    
    (1,000,000
    )Payment of dividends
    
    
    (79,649
    )
    
    
    (79,657
    )Reissuance of treasury stock
    
    
    
    
    
    
    12,634Purchase of treasury stock
    
    
    
    
    
    
    (2,384
    )Net Cash Provided by Financing Activities
    
    
    3,350,082
    
    
    
    7,128,467Net (Decrease) Increase In Cash and Cash Equivalents
    
    
    (1,383,915
    )
    
    
    5,610,815Cash and Cash Equivalents  Beginning
    
    
    11,650,201
    
    
    
    5,417,845Cash and Cash Equivalents  Ending
    
    $
    10,266,286
    
    
    $
    11,028,660Supplementary Cash Flows InformationIncome taxes paid
    
    $
    
    
    
    $
    35,200Interest paid
    
    $
    503,330
    
    
    $
    534,768
 The accompanying notes are an integral part of these consolidated financial statements.
 4




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##### 



EUREKA FINANCIAL CORP. AND SUBSIDIARY


Notes to Consolidated Financial Statements
 Note 1  Nature of Operations and Significant Accounting Policies
  Unaudited Interim Financial Statements
   Principles of Consolidation
  Earnings Per Share
   Three Months Ended December 31, 2010Income
    
    
    Shares
    
    

Per
Share AmountBasic earnings per share
    
    $
    242,405
    
    
    
    1,261,231
    
    
    $
    0.19Effect of dilutive securities
    
    
    
    
    
    
    
    
    
    
    Diluted earnings per share
    
    $
    242,405
    
    
    
    1,261,231
    
    
    $
    0.19
 5




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##### 



Three Months Ended December 31, 2009Income
    
    
    Shares
    
    
    Per Share AmountBasic earnings per share
    
    $
    234,335
    
    
    
    1,261,287
    
    
    $
    0.19Effect of dilutive securities
    
    
    
    
    
    
    
    
    
    
    Diluted earnings per share
    
    $
    234,335
    
    
    
    1,261,287
    
    
    $
    0.19
 Subsequent Events
  Reclassifications
  Note 2  Plan of Conversion and Reorganization
     6




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##### 



Note 3  Investment Securities
   December 31,2010Gross
    
    
    GrossAmortized
    
    
    Unrealized
    
    
    UnrealizedCost
    
    
    Gains
    
    
    Losses
    
    
    Fair Value(Unaudited)Obligations of states and political subdivisions
    
    $
    497,517
    
    
    $
    
    
    
    $
    (36,867
    )
    
    $
    460,650Government agency debentures
    
    
    14,230,289
    
    
    
    29,744
    
    
    
    (391,533
    )
    
    
    13,868,500$
    14,727,806
    
    
    $
    29,744
    
    
    $
    (428,400
    )
    
    $
    14,329,150
 September 30, 2010Gross
    
    
    GrossAmortized
    
    
    Unrealized
    
    
    UnrealizedCost
    
    
    Gains
    
    
    Losses
    
    
    Fair Value(Unaudited)Obligations of states and political subdivisions
    
    $
    497,465
    
    
    $
    
    
    
    $
    (25
    )
    
    $
    497,440Government agency debentures
    
    
    9,985,085
    
    
    
    51,803
    
    
    
    (11,975
    )
    
    
    10,024,913$
    10,482,550
    
    
    $
    51,803
    
    
    $
    (12,000
    )
    
    $
    10,522,353
   December 31, 2010Amortized Cost
    
    
    Fair ValueDue after five years through ten years
    
    $
    3,000,000
    
    
    $
    2,960,850Due after ten years
    
    
    11,727,806
    
    
    
    11,368,300$
    14,727,806
    
    
    $
    14,329,150
  December 31, 2010Less than 12 Months
    
    
    More than 12 Months
    
    
    TotalFair
    
    
    Unrealized
    
    
    Fair
    
    
    Unrealized
    
    
    Fair
    
    
    UnrealizedValue
    
    
    Losses
    
    
    Value
    
    
    Losses
    
    
    Value
    
    
    LossesObligations of states and political subdivisions
    
    $
    
    
    
    $
    
    
    
    $
    460,650
    
    
    $
    (36,867
    )
    
    $
    460,650
    
    
    $
    (36,867
    )Government agency debentures
    
    
    11,851,950
    
    
    
    (391,533
    )
    
    
    
    
    
    
    
    
    
    
    11,851,950
    
    
    
    (391,533
    )$
    11,851,950
    
    
    $
    (391,533
    )
    
    $
    460,650
    
    
    $
    (36,867
    )
    
    $
    12,312,600
    
    
    $
    (428,400
    )
 September 30, 2010Less than 12 Months
    
    
    More than 12 Months
    
    
    TotalFair
    
    
    Unrealized
    
    
    Fair
    
    
    Unrealized
    
    
    Fair
    
    
    UnrealizedValue
    
    
    Losses
    
    
    Value
    
    
    Losses
    
    
    Value
    
    
    LossesObligations of states and political subdivisions
    
    $
    497,440
    
    
    $
    (25
    )
    
    $
    
    
    
    $
    
    
    
    $
    497,440
    
    
    $
    (25
    )Government agency debentures
    
    
    2,989,575
    
    
    
    (10,425
    )
    
    
    498,450
    
    
    
    (1,550
    )
    
    
    3,488,025
    
    
    
    (11,975
    )$
    3,487,015
    
    
    $
    (10.450
    )
    
    $
    498,450
    
    
    $
    (1,550
    )
    
    $
    3,985,465
    
    
    $
    (12,000
    )
 7




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##### 



Note 4  Mortgage-Backed Securities
  December 31, 2010Gross
    
    
    GrossAmortized
    
    
    Unrealized
    
    
    Unrealized
    
    
    FairCost
    
    
    Gains
    
    
    Losses
    
    
    ValueFreddie Mac certificates
    
    $
    8,260
    
    
    $
    620
    
    
    $
    
    
    
    $
    8,880Fannie Mae certificates
    
    
    24,945
    
    
    
    2,766
    
    
    
    
    
    
    
    27,711$
    33,205
    
    
    $
    3,386
    
    
    $
    
    
    
    $
    36,591
 September 30, 2010Gross
    
    
    GrossAmortized
    
    
    Unrealized
    
    
    Unrealized
    
    
    FairCost
    
    
    Gains
    
    
    Losses
    
    
    ValueFreddie Mac certificates
    
    $
    8,945
    
    
    $
    109
    
    
    $
    (30
    )
    
    $
    9,024Fannie Mae certificates
    
    
    29,503
    
    
    
    180
    
    
    
    (112
    )
    
    
    29,571$
    38,448
    
    
    $
    289
    
    
    $
    (142
    )
    
    $
    38,595
  December 31, 2010Amortized Cost
    
    
    Fair ValueDue after one year through five years
    
    $
    3,992
    
    
    $
    4,163Due after five years through ten years
    
    
    19,711
    
    
    
    21,900Due after ten years
    
    
    9,502
    
    
    
    10,528$
    33,205
    
    
    $
    36,591
  8




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##### 



September 30, 2010Less than 12 Months
    
    
    More than 12 Months
    
    
    TotalFair
    
    
    Unrealized
    
    
    Fair
    
    
    Unrealized
    
    
    Fair
    
    
    UnrealizedValue
    
    
    Losses
    
    
    Value
    
    
    Losses
    
    
    Value
    
    
    LossesFreddie Mac certificates
    
    $
    
    
    
    $
    
    
    
    $
    5,219
    
    
    $
    (30
    )
    
    $
    5,219
    
    
    $
    (30
    )Fannie Mae certificates
    
    
    
    
    
    
    
    
    
    
    20,147
    
    
    
    (112
    )
    
    
    20,147
    
    
    
    (112
    )$
    
    
    
    $
    
    
    
    $
    25,366
    
    
    $
    (142
    )
    
    $
    25,366
    
    
    $
    (142
    )
  Note 5  Loans
  December 31,
    
    
    September 30,2010
    
    
    2010One- to four-family real estate
    
    $
    42,558,498
    
    
    $
    41,341,759Construction
    
    
    1,565,212
    
    
    
    1,392,781Multi-family real estate
    
    
    14,610,442
    
    
    
    14,529,362Commercial real estate
    
    
    19,356,518
    
    
    
    19,363,550Home equity and second mortgages
    
    
    1,375,781
    
    
    
    1,586,407Secured loans
    
    
    496,220
    
    
    
    579,092Unsecured improvement loans
    
    
    241,749
    
    
    
    169,854Commercial leases
    
    
    16,025,352
    
    
    
    16,160,533Commercial lines of credit
    
    
    3,802,081
    
    
    
    3,966,326100,031,853
    
    
    
    99,089,664Plus:Unamortized loan premiums
    
    
    18,771
    
    
    
    26,493Less:Unamortized loan fees and costs, net
    
    
    (182,032
    )
    
    
    (177,579
    )Allowance for loan losses
    
    
    (922,438
    )
    
    
    (905,038
    )$
    98,946,154
    
    
    $
    98,033,540
 Loan Portfolio Composition
    9




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##### 



Credit Quality
  Rating 1  Pass
  Rating 2  Special Mention
  10




---



##### 



Rating 3  Substandard
  Rating 4  Doubtful
  Rating 5  Loss
   SpecialPass
    
    
    Mention
    
    
    Substandard
    
    
    Doubtful
    
    
    TotalOne- to four-family real estate
    
    $
    42,024,905
    
    
    $
    465,652
    
    
    $
    67,941
    
    
    $
    
    
    
    $
    42,558,498Construction
    
    
    1,565,212
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,565,212Multi-family
    
    
    14,610,442
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    14,610,442Commercial real estate
    
    
    19,356,518
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    19,356,518Home equity and second mortgages
    
    
    1,374,167
    
    
    
    1,614
    
    
    
    
    
    
    
    
    
    
    
    1,375,781Secured loans
    
    
    496,220
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    496,220Unsecured improvement loans
    
    
    241,749
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    241,749Commercial leases
    
    
    16,025,352
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    16,025,352Commercial lines of credit
    
    
    3,148,387
    
    
    
    653,694
    
    
    
    
    
    
    
    
    
    
    
    3,802,081$
    98,842,952
    
    
    $
    1,120,960
    
    
    $
    67,941
    
    
    $
    
    
    
    $
    100,031,853
  11




---



##### 



:
 Greater
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Non-30-59 Days
    
    
    60-89 Days
    
    
    than 90
    
    
    Total Past
    
    
    
    
    
    
    Total Loans
    
    
    accrualPast Due
    
    
    Past Due
    
    
    Days
    
    
    Due
    
    
    Current
    
    
    Receivables
    
    
    LoansOne- to four-family real estate
    
    $
    418,147
    
    
    $
    22,828
    
    
    $
    42,663
    
    
    $
    483,638
    
    
    $
    42,074,860
    
    
    $
    42,558,498
    
    
    $
    42,663Construction
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,565,212
    
    
    $
    1,565,212
    
    
    
    Multi-family real estate
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    14,610,442
    
    
    $
    14,610,442
    
    
    
    Commercial real estate
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    19,356,518
    
    
    $
    19,356,518
    
    
    
    Home equity and second mortgages
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,375,781
    
    
    $
    1,375,781
    
    
    
    Secured loans
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    496,220
    
    
    $
    496,220
    
    
    
    Unsecured improvement loans
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    241,749
    
    
    $
    241,749
    
    
    
    Commercial leases
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    16,025,352
    
    
    $
    16,025,352
    
    
    
    Commercial lines of credit
    
    
    229,778
    
    
    
    
    
    
    
    12,000
    
    
    
    12,000
    
    
    
    3,790,081
    
    
    $
    3,802,081
    
    
    $
    12,000$
    647,925
    
    
    $
    22,828
    
    
    $
    54,663
    
    
    $
    495,638
    
    
    $
    99,536,215
    
    
    $
    100,031,853
    
    
    $
    54,663
   12




---



##### 



HomeOne- to four
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    equity and
    
    
    
    
    
    
    Unsecured
    
    
    
    
    
    
    Commercialfamily real
    
    
    
    
    
    
    Multi-family
    
    
    Commercial
    
    
    second
    
    
    Secured
    
    
    improvement
    
    
    Commercial
    
    
    lines ofestate
    
    
    Construction
    
    
    real estate
    
    
    real estate
    
    
    mortgages
    
    
    loans
    
    
    loans
    
    
    leases
    
    
    credit
    
    
    Unallocated
    
    
    TotalAllowance for credit losses:Balance at December 31, 2010
    
    $
    125,286
    
    
    $
    10,723
    
    
    $
    109,578
    
    
    $
    296,313
    
    
    $
    14,150
    
    
    $
    
    
    
    $
    
    
    
    $
    280,976
    
    
    $
    42,629
    
    
    $
    42,783
    
    
    $
    922,438Ending balance: individually evaluated for impairment
    
    $
    15,531
    
    
    $
    
    
    
    $
    
    
    
    $
    26,148
    
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    25,438
    
    
    $
    
    
    
    $
    
    
    
    $
    67,117Ending balance: collectively evaluated for impairment
    
    $
    109,755
    
    
    $
    10,723
    
    
    $
    109,578
    
    
    $
    270,165
    
    
    $
    14,150
    
    
    $
    
    
    
    $
    
    
    
    $
    255,538
    
    
    $
    42,629
    
    
    $
    42,783
    
    
    $
    855,321Loans receivables:Ending balance
    
    $
    42,558,498
    
    
    $
    1,565,212
    
    
    $
    14,610,442
    
    
    $
    19,356,518
    
    
    $
    1,375,781
    
    
    $
    496,220
    
    
    $
    241,749
    
    
    $
    16,025,352
    
    
    $
    3,802,081
    
    
    
    
    
    
    $
    100,031,853Ending balance: individually evaluated for impairment
    
    $
    583,453
    
    
    $
    
    
    
    $
    
    
    
    $
    653,694
    
    
    $
    1,614
    
    
    $
    
    
    
    $
    
    
    
    $
    847,932
    
    
    $
    
    
    
    
    
    
    
    $
    2,086,693Ending balance: collectively evaluated for impairment
    
    $
    41,975,045
    
    
    $
    1,565,212
    
    
    $
    14,610,442
    
    
    $
    18,702,824
    
    
    $
    1,374,167
    
    
    $
    496,220
    
    
    $
    241,749
    
    
    $
    15,177,420
    
    
    $
    3,802,081
    
    
    
    
    
    
    $
    97,945,160
  13




---



##### 



Three MonthsEnded December 31,2010
    
    
    2009Balance  beginning of period
    
    $
    905,038
    
    
    $
    831,987Provision charged to operations
    
    
    17,400
    
    
    
    5,000Recoveries
    
    
    
    
    
    
    Net charge-offs
    
    
    
    
    
    
    Balance  end of period
    
    $
    922,438
    
    
    $
    836,987
 Note 6  Commitments
    Note 7  Fair Value Measurements and Fair Values of Financial Instruments
   Level 1:
 Level 2:
 Level 3:
 14




---



##### 



(Level 1)Quoted Prices
    
    
    (Level 2)in Active
    
    
    Significant
    
    
    (Level 3)Markets for
    
    
    Other
    
    
    SignificantDecember 31,
    
    
    Identical
    
    
    Observable
    
    
    UnobservableDescription
    
    2010
    
    
    Assets
    
    
    Inputs
    
    
    InputsMortgage-backed securities available for sale
    
    $
    36,591
    
    
    $
    
    
    
    $
    36,591
    
    
    $
    
 (Level 1)Quoted Prices
    
    
    (Level 2)in Active
    
    
    Significant
    
    
    (Level 3)Markets for
    
    
    Other
    
    
    SignificantSeptember 30,
    
    
    Identical
    
    
    Observable
    
    
    UnobservableDescription
    
    2010
    
    
    Assets
    
    
    Inputs
    
    
    InputsMortgage-backed securities available for sale
    
    $
    38,595
    
    
    $
    
    
    
    $
    38,595
    
    
    $
    
   15




---



##### 



December 31,
    
    
    September 30,2010
    
    
    2010Carrying
    
    
    Fair Market
    
    
    Carrying
    
    
    Fair MarketAmount
    
    
    Value
    
    
    Amount
    
    
    ValueFinancial assets:Cash and cash equivalents
    
    $
    10,266,286
    
    
    $
    10,266,286
    
    
    $
    11,650,201
    
    
    $
    11,650,201Mortgage-backed securities
    
    
    36,591
    
    
    
    36,591
    
    
    
    38,595
    
    
    
    38,595Held to maturity securities
    
    
    14,727,806
    
    
    
    14,329,150
    
    
    
    10,482,550
    
    
    
    10,522,353Federal Home Loan Bank stock
    
    
    756,500
    
    
    
    756,500
    
    
    
    796,400
    
    
    
    796,400Loans receivable, net
    
    
    98,946,154
    
    
    
    102,375,000
    
    
    
    98,033,540
    
    
    
    102,239,000Accrued interest receivable
    
    
    503,122
    
    
    
    503,122
    
    
    
    467,347
    
    
    
    467,347Financial Liabilities:Deposits
    
    
    115,219,351
    
    
    
    116,425,000
    
    
    
    111,043,564
    
    
    
    112,630,000Advances from borrowers for taxes and
insurance
    
    
    683,760
    
    
    
    683,760
    
    
    
    429,816
    
    
    
    429,816FHLB advances
    
    
    
    
    
    
    
    
    
    
    1,000,000
    
    
    
    1,013,000Accrued interest payable
    
    
    135,079
    
    
    
    135,079
    
    
    
    152,300
    
    
    
    152,300Off-balance sheet commitments
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
 Cash and Cash Equivalents
  Securities
  Federal Home Loan Bank Stock
  Loans Receivable
  Accrued Interest Receivable
  16




---



##### 



Deposit Liabilities
  Advances from Borrowers for Taxes and Insurance
  Federal Home Loan Bank Advances
  Accrued Interest Payable
  Off-Balance Sheet Commitments
  Note 8  Capital Requirements
     17




---



##### 



To be well Capitalizedunder PromptFor Capital Adequacy
    
    
    Corrective ActionActual
    
    
    Purposes
    
    
    ProvisionsAmount
    
    
    Ratio
    
    
    Amount
    
    
    Ratio
    
    
    Amount
    
    
    RatioAs of December 31, 2010Total capital (to risk-weighted assets)
    
    $
    13,904
    
    
    
    16.59
    %
    
    
    > 6,704
    
    
    
    > 8.00
    %
    
    
    > 8,380
    
    
    
    > 10.00
    %Tier 1 capital (to risk-weighted assets)
    
    
    12,982
    
    
    
    15.49
    
    
    
    > 3,352
    
    
    
    > 4.00
    
    
    
    > 5,028
    
    
    
    > 6.00Core (Tier 1) capital (to adjusted total assets)
    
    
    12,982
    
    
    
    10.00
    
    
    
    > 5,194
    
    
    
    > 4.00
    
    
    
    >6,492
    
    
    
    > 5.00As of September 30, 2010Total capital (to risk-weighted assets)
    
    
    13,644
    
    
    
    16.39
    
    
    
    > 6,662
    
    
    
    > 8.00
    
    
    
    > 8,327
    
    
    
    > 10.00Tier 1 capital (to risk-weighted assets)
    
    
    12,739
    
    
    
    15.30
    
    
    
    > 3,331
    
    
    
    > 4.00
    
    
    
    > 4,996
    
    
    
    > 6.00Core (Tier 1) capital (to adjusted total assets)
    
    
    12,739
    
    
    
    10.10
    
    
    
    > 5,048
    
    
    
    > 4.00
    
    
    
    > 6,309
    
    
    
    > 5.00
  December 31,
    
    
    September 30,2010
    
    
    2010Total equity
    
    $
    14,086
    
    
    $
    13,841Unrealized losses/(gains) on securities available-for-sale
    
    
    (2
    )
    
    
    Deferred tax asset  disallowed portion
    
    
    (1,102
    )
    
    
    (1,102
    )Tier 1 capital
    
    
    12,982
    
    
    
    12,739Other adjustments
    
    
    
    
    
    
    Allowable allowances for loan and lease losses
    
    
    922
    
    
    
    905Total regulatory capital
    
    $
    13,904
    
    
    $
    13,644
 Note 9  Recent Accounting Pronouncements
   18




---



##### 



Item 2.
    
    Managements Discussion and Analysis of Financial Condition and Results of Operation
 Safe Harbor Statement for Forward-Looking Statements
   Critical Accounting Policies
  Allowance for Loan Losses.
 19




---



##### 



Deferred Income Taxes.
 Valuation and Other-Than-Temporary Impairment of Investment Securities.
 Comparison of Financial Condition at December 31, 2010 and September 30, 2010
    20




---



##### 



Results of Operations for the Three Months Ended December 31, 2010 and 2009
 Overview.
 Three Months Ended December 31,2010
    
    
    2009(Dollars in thousands, exceptper share amounts)Net income
    
    $
    242
    
    
    $
    234Basic earnings per share
    
    
    0.19
    
    
    
    0.19Diluted earnings per share
    
    
    0.19
    
    
    
    0.19Average equity to average assets
    
    
    10.91
    %
    
    
    12.28
    %
  Net Interest Income.
 21




---



##### 



Rate/Volume Analysis .
 Three Months EndedDecember 31, 2010Compared toThree Months EndedDecember 31, 2009Increase (Decrease)Due toRate
    
    
    Volume
    
    
    Net(In thousands)Interest income:Loans receivable
    
    $
    (28
    )
    
    $
    38
    
    
    $
    10Investment securities
    
    
    18
    
    
    
    53
    
    
    
    71Total interest-earning assets
    
    
    (10
    )
    
    
    91
    
    
    
    81Interest Expense:NOW money markets accounts
    
    
    (24
    )
    
    
    14
    
    
    
    (10
    )Passbook and club accounts
    
    
    (13
    )
    
    
    2
    
    
    
    (11
    )IRA accounts
    
    
    (16
    )
    
    
    14
    
    
    
    (2
    )Certificates of deposit
    
    
    (16
    )
    
    
    (8
    )
    
    
    (24
    )CDARS
    
    
    (6
    )
    
    
    2
    
    
    
    (4
    )Borrowings
    
    
    8
    
    
    
    (16
    )
    
    
    (8
    )Total interest-bearing liabilities
    
    
    (67
    )
    
    
    8
    
    
    
    (59
    )Net change in net interest income
    
    $
    57
    
    
    $
    83
    
    
    $
    140
 Provision for Loan Losses.
  Non-interest Income.
 Three Months EndedDecember 31,2010
    
    
    2009
    
    
    $ Change
    
    
    % ChangeFees on NOW accounts
    
    $
    8,462
    
    
    $
    10,598
    
    
    $
    (2,136
    )
    
    
    (20.2
    )%Other income
    
    
    10,172
    
    
    
    7,265
    
    
    
    2,907
    
    
    
    40.0
    %Total non-interest income
    
    $
    18,634
    
    
    $
    17,863
    
    
    
    771
    
    
    
    4.3
    %
 22




---



##### 



Non-interest Expense.
 Three Months EndedDecember 31,2010
    
    
    2009
    
    
    $ Change
    
    
    % Change(Dollars in thousands)Salary and benefits
    
    $
    434,195
    
    
    $
    373,981
    
    
    $
    60,214
    
    
    
    16.1
    %Occupancy
    
    
    90,381
    
    
    
    84,461
    
    
    
    5,920
    
    
    
    7.0Computer
    
    
    46,545
    
    
    
    42,181
    
    
    
    4,364
    
    
    
    10.3Legal and accounting
    
    
    52,708
    
    
    
    52,034
    
    
    
    674
    
    
    
    1.3Donations
    
    
    1,300
    
    
    
    1,225
    
    
    
    75
    
    
    
    6.1FDIC insurance premiums
    
    
    37,353
    
    
    
    15,938
    
    
    
    21,415
    
    
    
    134.4Other
    
    
    48,934
    
    
    
    46,738
    
    
    
    2,196
    
    
    
    4.7Total non-interest expense
    
    $
    711,416
    
    
    $
    616,558
    
    
    $
    94,858
    
    
    
    15.4
    %
  Income Taxes.
 Liquidity and Capital Resources
 Liquidity Management.
    Capital Management.
 23




---



##### 



Off-Balance Sheet Arrangements
   
 Item 3.
    
    Quantitative and Qualitative Disclosure About Market Risk
  
 Item 4.
    
    Controls and Procedures
  24




---



##### 



PART II. OTHER INFORMATION
 
 Item 1.
    
    Legal Proceedings
  
 Item 1A.
    
    Risk Factors
  
 Item 2.
    
    Unregistered Sales of Equity Securities and Use of Proceeds
  
 Item 3.
    
    Defaults Upon Senior Securities
  
 Item 4.
    
    (Removed and Reserved)
 
 Item 5.
    
    Other Information.
  
 Item 6.
    
    Exhibits
 2.1
    
    
    Plan of Conversion and Reorganization (1)3.1
    
    
    Articles of Incorporation of Eureka Financial Corp. (1)3.2
    
    
    Bylaws of Eureka Financial Corp. (1)4.0
    
    
    Form of Stock Certificate of Eureka Financial Corp. (1)31.1
    
    
    Rule 13a-14(a)/15d-14(a) Certification of Chief Executive Officer31.2
    
    
    Rule 13a-14(a)/15d-14(a) Certification of Chief Financial Officer32.0
    
    
    Section 1350 Certification
 
 (1)
    
    Incorporated herein by reference to the exhibits to the Companys Registration
Statement on Form S-1 (File No. 333-169767), as amended, initially filed with the
Securities and Exchange Commission on October 5, 2010. 25




---



##### 



SIGNATURES
  EUREKA FINANCIAL CORP.Dated: February 24, 2011
    By:
    /s/ Edward F. SeserkoEdward F. SeserkoPresident and Chief Executive Officer
(principal executive officer)Dated: February 24, 2011
    By:
    /s/ Gary B. PepperGary B. PepperExecutive Vice Preisdent and Chief Financial Officer
(principal accounting and financial officer)