HAWKEYE <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.