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SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported)
August 6, 1996
CLASSIC BANCSHARES, INC.
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(Exact name of Registrant as specified in its Charter)
Delaware 0-27170 61-1289391
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State or other (Commission File No.) (IRS Employer
jurisdiction of Identification
incorporation) Number)
344 Seventeenth Street, Ashland, Kentucky 41101
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code:(606) 325-4789
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N/A
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(Former name or former address, if changed since last report)
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Item 5. Other Events
On August 6, 1996, the Registrant issued the attached press release
announcing the results of June 30, 1996 quarter.
Item 7. Financial Statements and Exhibits
(a) Exhibits
99. Press release dated August 6, 1996.
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this Report to be signed on its behalf by the
undersigned thereunto duly authorized.
CLASSIC BANCSHARES, INC.
Date: August 11, 1996 By: /s/ David B. Barbour
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David B. Barbour, President
and Chief Executive Officer)
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Index to Exhibits
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Exhibit
Number
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99 Press release dated July 29, 1996
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FOR IMMEDIATE RELEASE
For Additional Information Contact:
David B. Barbour, President and Chief Executive Officer
Lisah Frazier, Vice President, Treasurer and Chief Financial
Officer
(606) 325-4789
Fax (606) 324-1307
FIRST QUARTER ENDING JUNE 30, 1996
EARNINGS RELEASE - CLASSIC BANCSHARES, INC.
Ashland, Kentucky, -- August 6, 1996 -- Classic Bancshares, Inc. (NASDAQ -
CLAS) had net income for the three months ended June 30, 1996 of $161,000
compared to a net loss for the same period ended June 30, 1995 of $17,000.
The Company's return on average assets was .9% for the three months ended June
30, 1996, compared to (.1%) for the three months ended June 30, 1995.
Earnings per share for the three months ended June 30, 1996 was $.13.
Classic Bancshares' assets increased 4.0% to $68.8 million at June 30,
1996 from $66.1 million at March 31, 1996. The primary factor in this growth
was an increase in loans of 7.8%, from $43.7 million at March 31, 1996 to
$47.1 million at June 30, 1996. Loans increased as a result of increased
marketing efforts and the Bank's new strategy to originate commercial real
estate, consumer and commercial loans. Deposits increased $200,00, from $46.2
million at March 31, 1996 to $46.4 million at June 30, 1996. Non-performing
assets decreased from .9% of total assets at March 31, 1996 to .6% at June 30,
1996.
President and Chief Executive Officer, David B. Barbour, stated that
"the first quarter results represent the fruits of our new strategic plan and
more closely represents the true earnings capabilities of the Company and its
commercial banking focus. Our net interest margin of 3.3% represents a
significant improvement over the 2.2% net interest margin recorded in the
corresponding period in 1995, and is more in line with our commercial banking
counterparts. We remain confident that full implementation of our new
strategy which includes a commercial banking product line during the remainder
of 1996, should, subject to market conditions, result in continued
improvements in our net interest margin, non-interest income and net income in
future periods."
Net interest income was $538,000 for the three months ended June 30,
1996 as compared to $332,000 for the same period of 1995. The increase in net
interest income resulted from an increase in loan volume and higher yielding
loans and a decrease in higher costing brokered deposits. The net interest
margin was 3.3% for the three months June 30, 1996 as compared to 2.2% for the
three months ended June 30, 1995.
Non-interest income was $12,000 for the three months ended June 30, 1996
compared to a loss of $52,000 for the three months ended June 30, 1995. The
loss for the period in 1995 resulted from the loss on the sale of mortgage-
backed securities.
Total non-interest expense for the three months ended June 30, 1996 was
$320,000 compared to $226,000 for the same period in 1995, or an increase of
41.6%. The increase resulted from costs associated with the introduction of
new product offerings, increased costs relative to operation as a public
company and additional staffing and increased personnel costs from employee
benefit plans. Non-interest expenses to average total assets were 1.9% for
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the three months ended June 30, 1996 compared to 1.5% for the three months
ended June 30, 1995.
Stockholders' equity stood at $19.5 million and tangible book value was
$15.96 per share at June 30, 1996.
As previously announced, Classic Bancshares has entered into a
definitive agreement to merge with First Paintsville Bancshares, Inc., the
bank holding company for The First National Bank of Paintsville, Paintsville,
Kentucky. Under the agreement, Classic Bancshares will acquire all
outstanding shares of First Paintsville Bancshares common stock in a cash
transaction valued at $9.3 million.
Classic Bancshares, Inc. only subsidiary, Ashland Federal Savings Bank
operates at 344 Seventeenth Street, Ashland, Kentucky.
When used in this press release, the words or phrases "should result,"
"will likely result", "are expected to", "will continue", "is anticipated",
"estimate", "project" or similar expressions are intended to identify
"forward-looking statements" within the meaning of the Private Securities
Litigation Reform Act of 1995. Such statements are subject to certain risks
and uncertainties, including changes in economic condition in the Company's
market area, changes in policies by regulatory agencies, fluctuations in
interest rates, demand for loans in the Company's market area and competition,
that could cause actual results to differ materially from historical earnings
and those presently anticipated or projected. The Company wishes to caution
readers not to place undue reliance on such forward-looking statements, which
speak only as of the date made. The Company wishes to advise readers that the
factors listed could affect the Company's financial performance and could
cause the Company's actual results for future periods to differ materially
from any opinions or statements expressed with respect to future periods in
any current statements.
The Company does not undertake and specifically declines any obligation
to publicly release the result of any revisions which may be made to any
forward-looking statements to reflect events or circumstances after the date
of such statements or to reflect the occurrence of anticipated or
unanticipated events.
SEE FOLLOWING PAGES FOR
SELECTED FINANCIAL DATA
INCLUDED AS A PART OF THIS RELEASE
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SELECTED FINANCIAL DATA
The following table sets forth selected financial data of Classic
Bancshares, Inc. as of June 30, 1996 and March 31, 1996 and for the three
months ended June 30, 1996 and 1995.
June 30, March 31,
1996 1996
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(In Thousands)
Selected Financial Condition Data:
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[S] [C] [C]
Total Assets $ 68,754 $ 66,083
Cash and other interest bearing deposits
with other financial institutions 6,391 7,106
Loans receivable, net 47,121 43,722
Investment securities:
Available for sale 10,242 10,438
Mortgage-backed securities:
Available for sale 2,762 2,840
Deposits 46,419 46,201
FHLB advances 2,500 ---
Stockholders' Equity, subject to
certain restrictions 19,505 19,500
Three Months Ended June 30,
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1996 1995
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(In Thousands)
Selected Operations Data:
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[S] [C] [C]
Total interest income $1,159 $1,053
Total interest expense 621 721
Net interest income 538 332
Provision for losses on loans 15 110
Net interest income after provision
for losses on loans 523 222
Fees and service charges 9 8
Loss on sale of mortgage-backed securities --- (62)
Other non-interest income 3 2
Total non-interest income 12 (52)
Total non-interest expense 320 226
Income before income taxes 215 (56)
Income tax expense (benefit) 54 (39)
Net income $ 161 $ (17)
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At or for the Three Months Ended
June 30,
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1996 1995
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Other Data:
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[S] [C] [C]
Return on average assets (ratio of net
income to total average assets)* .9% (.1%)
Net interest margin** 3.3 2.2
Non-performing assets to total assets .6 1.4
Allowance for loan losses to non-
performing loans 67.4 60.5
Equity to total assets at end of period 28.4 12.0
Efficiency ratio*** 64.9 98.3
Number of full service offices 1 1
* Annualized
** Net interest income annualized divided by average-earning assets.
*** Non-interest expenses divided by the total of net interest income and
non-interest income.
