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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)
July 27, 1998
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 jurisdiction (Commission File No.)(IRS Employer Identification
of incorporation) No.)
344 17th 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 July 27, 1998, the Registrant issued the press release attached hereto
as Exhibit 99 announcing its earnings for the quarter ended June 30, 1998 and an
increase in the cash dividend.
Item 7. Financial Statements and Exhibits
(a) Exhibits
99 Press release dated July 27, 1998.
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SIGNATURES
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 5, 1998 By: /s/Lisah M. Frazier
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Lisah M. Frazier, Vice President,
Treasurer and Chief Financial
Officer
EXHIBIT 99
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FOR IMMEDIATE RELEASE
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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
CLASSIC BANCSHARES, INC. REPORTS FIRST QUARTER EARNINGS AND AN
INCREASE IN THE CASH DIVIDEND
Ashland, Kentucky, -- July 27, 1998 -- Classic Bancshares, Inc. (NASDAQ
- - CLAS) had net income of $197,000 for the three months ended June 30, 1998
compared to net income of $237,000 for the three months ended June 30, 1997.
Return on average assets was .6% for the quarter ended June 30, 1998 and .7% for
the quarter ended June 30, 1997. Earnings per share were $.17 for the three
months ended June 30, 1998 and $.20 for the three months ended June 30, 1997.
Classic Bancshares' assets increased $7.0 million from $130.9 million
at March 31, 1998 to $137.9 million at June 30, 1998. The increase in assets was
due to an increase in loans of $2.2 million and an increase in investment and
mortgage-backed securities of $4.8 million. Loans increased $2.2 million from
$90.1 million at March 31, 1998 to $92.3 million at June 30, 1998. The increase
in loans is primarily the result of aggressive origination efforts and strong
loan demand within the Company's market areas. Deposits increased $3.8 million
from $104.6 million at March 31, 1998 to $108.4 million at June 30, 1998.
Nonperforming assets decreased from .4% of total assets at March 31, 1998 to .3%
at June 30, 1998.
President and Chief Executive Officer, David B. Barbour, stated that,
"This quarter reflects the impact of increased costs associated with the opening
of two new banking offices. With these banking offices now in place, we are
confident that the Company will continue to experience loan and deposit growth
and build shareholder value. We continue to experience an increase in fees and
service charges on deposit accounts as a result of new product offerings and
aggressive pricing strategies. Asset quality continues to remain strong as
evidenced by a decrease in non-performing assets to total assets while still
experiencing solid loan growth."
Net interest income was $1.2 million for the quarter ended June 30,
1998 and 1997. The net interest margin was 3.8% for the three months ended June
30, 1998 and 3.9% for the three months ended June 30, 1997 as the relationship
between long and short term interest rates remained flat.
Non-interest income was $145,000 for the quarter ended June 30, 1998
compared to $109,000 for the quarter ended June 30, 1997. The increase was due
to an increase in fees and service charges on deposits as a result of new
product offerings and aggressive pricing strategies.
Total non-interest expense for the quarter ended June 30, 1998 was $1.0
million compared to $921,000 for the quarter ended June 30, 1997. The increase
is the result of increased costs associated with the additional banking offices
and an increase in marketing and advertising and other general and
administrative expenses.
Stockholders' equity was $20.4 million at June 30, 1998 and March 31,
1998.
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Classic Bancshares, Inc. also announced that the Company will pay a
quarterly cash dividend of $.08 per share, an increase of $.01 per share, or
14.3% over the previous quarterly dividend. The dividend will be payable on
August 24, 1998 to shareholders of record on August 10, 1998.
Classic Bancshares, Inc. is headquartered in Ashland, Kentucky and has
two subsidiaries, Classic Bank and First National Bank of Paintsville. Classic
Bank operates at 344 Seventeenth Street, Ashland, Kentucky with two branch
offices located in Boyd and Greenup counties. First National Bank of Paintsville
operates at 240 Main Street, Paintsville, Kentucky with one branch office
located in Johnson County.
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
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SELECTED FINANCIAL DATA
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INCLUDED AS 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, 1998 and March 31, 1998 and for the three months
ended June 30, 1998 and 1997.
<TABLE>
<CAPTION>
June 30, March 31,
1998 1998
(In Thousands)
<S> <C> <C>
Selected Financial Condition
Data:
Total Assets $ 137,984 $ 130,933
Cash and other interest bearing deposits
with other financial institutions 3,324 3,625
Loans receivable, net 92,337 90,100
Investment securities:
Available for sale 21,170 18,177
Mortgage-backed securities:
Available for sale 9,638 7,831
Goodwill 2,872 2,903
Deposits 108,400 104,627
Securities sold under agreement to repurchase 2,916 3,522
FHLB advances 2,862 -
Stockholders' Equity, subject to certain restrictions 20,447 20,407
</TABLE>
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<TABLE>
<CAPTION>
Three Months Ended
June 30,
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1998 1997
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(In Thousands)
<S> <C> <C>
Selected Operations Data:
Total interest income $ 2,415 $ 2,369
Total interest expense 1,227 1,180
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Net interest income 1,188 1,189
Provision for losses on loans 25 48
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Net interest income after provision
for losses on loans 1,163 1,141
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Fees and service charges 108 74
Gain on sale of mortgage-backed & other securities 1 1
Other noninterest income 36 34
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Total noninterest income 145 109
Total noninterest expense 1,046 921
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Income before income taxes 262 329
Income tax expense 65 92
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Net income $ 197 $ 237
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</TABLE>
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<TABLE>
<CAPTION>
At or for the Three Months Ended
June 30,
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1998 1997
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<S> <C> <C>
Other
Data:
Return on average assets (ratio of net
income to total average assets)* .6% .7%
Net interest margin** 3.8 3.9
Non-performing assets to total assets .3 .9
Allowance for loan losses to non-
performing loans 687.75 93.6
Equity to total assets at end of period 14.8 14.9
Efficiency ratio*** 80.1 70.9
Basic earnings per share $0.17 $0.20
Diluted earnings per share $0.16 $0.20
Book value per share $15.60 $14.82
Tangible book value per share $13.38 $12.53
Number of full service offices 5 3
<FN>
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* Annualized
** Net interest income annualized divided by average-earning assets.
*** Non-interest expenses divided the total of net interest income and non-interest income.
</FN>
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