HAWKEYE &lt;HWKB> 1986 ANNUAL REPORT QUALIFIED
  Hawkeye Bancorp's 1986 annual
  financial results were qualified by its auditors, according to
  the annual report.
      "...there are conditions which may indicate that the
  company will be unable to continue as a going concern,"
  auditors Deloitte Haskins and Sells said in Hawkeye's annual
  report to shareholders.
      Hawkeye reported a 1986 loss of almost 59 mln dlrs, citing
  an increase in its loan loss provision to 34.7 mln dlrs and
  restructuring costs of 27 mln dlrs.
      However, Hawkeye, with assets of 1.09 billion dlrs at 1986
  year end, said it expects "to have sufficient cash to meet its
  obligations for the next 12-month period."
      Last July the bank holding company reached a debt
  restructuring agreement which identifed 17 bank subsidiaries
  and five non-bank operations for disposition.
      "The restructuring has improved Hawkeye's financial
  condition, but it does not assure that Hawkeye will be able to
  survive as a going concern," the report said.
      Hawkeye's survival will depend on its ability to comply
  with provisions of the debt restructuring and regulatory
  agreements and on its ability to return to profitable
  operations, it said.
      There can be no assurance that Hawkeye will be able to meet
  these requirements. However, the company "believes it will be
  able to do so," Hawkeye said.
  

