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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 25, 2000
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 25, 2000, the Registrant issued the press release attached hereto
as Exhibit 99 announcing its earnings for the quarter ended June 30, 2000 and
the declaration of a cash dividned.
(a) Exhibits
99 Press release dated July 25, 2000.
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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: July 25,2000 By: /s/Lisah M. Frazier
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Lisah M. Frazier, Senior Vice President,
Treasurer and Chief Financial
Officer
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EXHIBIT 99
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FOR IMMEDIATE RELEASE
For Additional Information Contact:
David B. Barbour, President and Chief Executive Officer
Lisah M. Frazier, Senior Vice President, Treasurer and Chief Financial Officer
(606) 325-4789
Fax (606) 324-1307
www.bank-anywhere.com
CLASSIC BANCSHARES, INC. REPORTS AN 18% INCREASE IN YEAR-TO-DATE EARNINGS PER
SHARE AND DECLARES A CASH DIVIDEND
Ashland, Kentucky, -- July 25, 2000 -- Classic Bancshares, Inc. (NASDAQ
- CLAS) reported adjusted cash net income (which excludes amortization of
goodwill) of $346,000 for the first quarter ended June 30, 2000 compared to
adjusted cash net income of $315,000 for the same period in 1999. Adjusted cash
earnings per share were $.32 for the three months ended June 30, 2000 compared
to $.27 for the same period in 1999.
Net income for the first quarter ended June 30, 2000 was $283,000, or
$.26 per diluted share compared to $252,000, or $.22 per diluted share for the
same period in 1999.
Classic Bancshares' assets increased $4.0 million from $175.3 million
at March 31, 2000 to $179.3 million at June 30, 2000. Loans increased $4.7
million from $127.8 million at March 31, 2000 to $132.5 million at June 30,
2000. Consistent with the company's strategic plan, the growth in loans
continues to be primarily in the areas of commercial mortgage, commercial
business, and consumer loans. Deposits decreased approximately $800,000 from
$134.9 million at March 31, 2000 to $134.1 million at June 30, 2000. The
decrease in deposits was due to the Company utilizing lower cost funding in
order to control the Company's cost of funds.
The Company continued to maintain strong asset quality as total
non-performing assets was .6% of total assets at June 30, 2000 and March 31,
2000. The Company recorded a provision for loan losses of $69,000 for the
three-month period, had net charge-offs of $22,000 for the three-month period
resulting in an allowance for loan losses of $1.3 million at June 30, 2000. The
allowance at June 30, 2000 was equal to 182% of total non-performing loans, 132%
of non-performing assets and 1.0% of total loans receivable.
Net interest income increased approximately $207,000 to $1.6 million
for the first quarter ended June 30, 2000 compared to $1.4 million for the first
quarter ended June 30, 1999. The net interest margin decreased to 4.2% for the
quarter ended June 30, 2000 compared to 4.4% for the same period in 1999 due to
a rising interest rate environment. The Company experienced an increase in net
interest income due to a more diversified loan portfolio and volume increases.
Non-interest income was $255,000 for the quarter ended June 30, 2000
compared to $191,000 for the quarter ended June 30, 1999. Non-interest income
increased for the quarter primarily due to an increase in fees and service
charges on deposit accounts. The increase in fees and service charges on
deposits is the result of an increased deposit base.
Non-interest expense for the quarter ended June 30, 2000 was $1.4
million compared to $1.2 million for the quarter ended June 30, 1999.
Non-interest expenses increased due to an aggressive marketing program and the
continued building of a technological infrastructure that will serve the Company
well into the future.
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Stockholders' equity was $19.0 million at June 30, 2000 and March 31,
2000.
Classic Bancshares, Inc. also announced that the Company will pay a
quarterly cash dividend of $.08 per share. The dividend will be payable on
August 22, 2000 to shareholders of record on August 8, 2000.
The Company also previously announced the charter conversion of its
Classic Bank subsidiary from a federal savings bank to a Kentucky-chartered
commercial bank. The charter conversion was effective June 30, 2000.
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 three branch
offices located in Boyd, Greenup and Carter 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
SELECTED FINANCIAL DATA
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, 2000 and March 31, 2000 and for the three months
ended June 30, 2000 and 1999.
<TABLE>
June 30, March 31,
2000 2000
(In Thousands)
<S> <C> <C>
Selected Financial Condition Data:
Total Assets $179,335 $175,254
Cash and other interest bearing deposits with other financial institutions 5,134 5,354
Loans receivable, net 132,491 127,808
Investment securities:
Available for sale 25,206 23,135
Mortgage-backed securities:
Available for sale 3,162 3,230
Goodwill 5,745 5,809
Deposits 134,089 134,897
Federal funds purchased and securities sold under Agreement to repurchase 2,760 2,688
FHLB advances 21,551 17,075
Stockholder's Equity, subject to certain restrictions 18,956 18,999
</TABLE>
<TABLE>
Three Months Ended
June 30,
2000 1999
(In Thousands)
<S> <C> <C>
Selected Operation Data:
Total interest income $3,310 $2,699
Total interest expense 1,700 1,296
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Net interest income 1,610 1,403
Provision for losses on loans 69 35
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Net interest income after provision for losses on loans 1,541 1,368
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Fees and service charges 217 149
Other non-interest income 38 42
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Total non-interest income 255 191
Total non-interest expense 1,423 1,239
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Income before income taxes 373 320
Income tax expense 90 68
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Net Income $ 283 $ 252
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Amortization of goodwill 63 63
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Adjusted cash net income $ 346 $ 315
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Available for sale 25,206 23,135
</TABLE>
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<TABLE>
<S> <C> <C>
Basic earnings per share $0.26 $0.22
Adjusted cash basic earnings per share* $0.32 $0.28
Fully diluted earnings per share $0.26 $0.22
Adjusted cash fully diluted earnings per share* $0.32 $0.27
* Adjusted to exclude amortization of goodwill
</TABLE>
<TABLE>
At or for the Three Months Ended
June 30,
2,000 1,999
<S> <C> <C>
Other Data:
Return on average assets (ratio of annualized Adjusted net income to total
average assets)** .8% .8%
Return on average equity (ratio of annualized Adjusted net income to total
average equity)** 7.3 6.4
Net interest margin***(FTE) 4.2 4.4
Non-performing assets to total assets 0.6 0.7
Allowance for loan losses to non-performing loans 182.4 141.3
Allowance for loan losses to loan receivable, net 1.0 1.1
Equity to total assets at end of period 10.6 11.8
Adjusted non-interest expenses/Total revenues **** 69.5 69.7
Book value per share $16.11 $15.75
Tangible book value per share $11.23 $10.98
Total shares outstanding 1,176,356 1,232,545
Number of full service offices 6 6
Number of ATM locations 14 14
</TABLE>
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** Net income is adjusted to exclude the amortization of goodwill
*** Netinterest income (FTE) annualized divided by average earnings assets
**** Adjusted non-interest expense excludes amortization of goodwill
Total revenues = Net interest income (FTE) + non-interest income
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