<PAGE>
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)
October 27, 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 October 27, 2000, the Registrant issued the press release attached
hereto as Exhibit 99 announcing its earnings for year-to-date October 27, 2000
and the declaration of a cash dividned.
(a) Exhibits
99 Press release dated October 27, 2000.
<PAGE>
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: October 27, 2000 By: /s/Lisah M. Frazier
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Lisah M. Frazier, Senior Vice President,
Treasurer and Chief Financial
Officer
<PAGE>
EXHIBIT 99
<PAGE>
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 A 20% INCREASE IN YEAR-TO-DATE EARNINGS PER
SHARE AND DECLARES A CASH DIVIDEND
Ashland, Kentucky, -- October 27, 2000 -- Classic Bancshares, Inc.
(NASDAQ - CLAS) reported adjusted cash net income (which excludes amortization
of goodwill) of $359,000 for the second quarter ended September 30, 2000
compared to cash adjusted net income of $323,000 for the same period in 1999.
Cash-diluted earnings per share were $.33 for the three months ended September
30, 2000 compared to $.28 for the same period in 1999. Adjusted cash net income
for the six months ended September 30, 2000 was $705,000 compared to $621,000
for the same period in 1999. Cash-diluted earnings per share were $.65 for the
six months ended September 30, 2000 compared to $.54 for the same period in
1999.
Net income for the second quarter ended September 30, 2000 was $295,000
or $.27 per diluted share compared to $261,000, or $.22 per diluted share for
the same period in 1999. Net income for the six months ended September 30, 2000
was $578,000, or $.53 per diluted share compared to $513,000, or $.44 per
diluted share for the same period in 1999.
Classic Bancshares' assets increased $6.4 million from $175.3 million
at March 31, 2000 to $181.7 million at September 30, 2000 primarily due to an
increase in loans. Loans increased $6.7 million from $127.8 million at March 31,
2000 to $134.5 million at September 30, 2000. Deposits increased $5.1 million
from $134.9 million at March 31, 2000 to $140.0 million at September 30, 2000.
The Company experienced strong transactional deposit growth during the period
and was able to deploy these funds primarily into higher yielding consumer,
commercial real estate and commercial business loans and to a lesser extent
residential mortgage loans.
The Company's asset quality remained stable as total non-performing
assets were .7% of total assets at September 30, 2000 compared to .6% at March
31, 2000. The Company recorded a provision for loan losses of $124,000 for the
six-month period and had net charge-offs of $50,000 for the six-month period
resulting in an allowance for loan losses of $1.4 million at September 30, 2000.
The allowance at September 30, 2000 was equal to 155% of total non-performing
loans, 114% of non-performing assets and 1.0% of total loans receivable.
Senior Vice President and Chief Financial Officer, Lisah M. Frazier
stated that, "The Company is on track for the fiscal year ending 2001. We
continue to follow our strategic plan of targeted growth in the areas of
consumer and commercial lending, building a strong base of core transactional
deposits and creating new opportunities for non-interest income. We also
continue to focus on improving overhead costs through continued consolidation of
the Company's operations. "
<PAGE>
Net interest income increased to $1.6 million for the second quarter
ended September 30, 2000 compared to $1.5 million for the second quarter ended
September 30, 1999. The net interest margin decreased to 4.1% for the quarter
ended September 30, 2000 compared to 4.4% for the same period in 1999. Net
interest income increased $247,000 to $3.2 million for the six months ended
September 30, 2000 compared to $2.9 million for the same period in 1999. The net
interest margin decreased to 4.1% for the six months ended September 30, 2000
compared to 4.3% for the same period in 1999. The increase in net interest
income was due to an increase in interest income as a result of an increase in
the average volume of loans and the origination of higher yielding loans offset
by an increase in interest expense due to rising interest rates.
Non-interest income was $256,000 for the quarter ended September 30,
2000 compared to $214,000 for the quarter ended September 30, 1999. Non-interest
income was $511,000 for the six months ended September 30, 2000 compared to
$405,000 for the six months ended September 30, 1999. Non-interest income
increased 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
increased product offerings, an increased deposit base and aggressive pricing
strategies.
Non-interest expense was $1.4 million for the quarter ended September
30, 2000 and 1999. Non-interest expense was $2.8 million for the six months
ended September 30, 2000 compared to $2.6 million for the same period in 1999.
Non-interest expenses increased primarily due to the cost of increased marketing
and advertising efforts of the Company.
Stockholders' equity was $19.6 million at September 30, 2000 compared
to $19.0 million at 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
November 13, 2000 to shareholders of record on October 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.
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SELECTED FINANCIAL DATA
The following table sets forth selected financial data of Classic
Bancshares, Inc. as of September 30, 2000 and March 31, 2000 and for the three
and six months ended September 30, 2000 and 1999.
<TABLE>
Sept. 30, March 31,
2000 2000
(In Thousands)
<S> <C> <C>
Selected Financial Condition Data:
==================================
Total Assets $181,734 $175,254
Cash and other interest bearing deposits
with other financial institutions 5,173 5,354
Loans receivable, net 134,474 127,808
Investment securities:
Available for Sale 25,700 25,135
Mortgage-backed securities:
Available for Sale 3,060 3,230
Goodwill 5,681 5,809
Deposits 139,982 134,897
Federal funds purchased and securities sold under
Agreement to repurchase 3,213 2,688
FHLB advances 17,056 17,075
Stockholders' Equity, subject to certain restrictions 19,552 18,999
</TABLE>
<TABLE>
Three Months Ended Six Months Ended
September 30, September 30,
============ ============
2000 1999 2000 1999
==== ==== ==== ====
(In Thousands)
<S> <C> <C> <C> <C>
Selected Operations Data:
=========================
Total interest income $3,432 $2,995 $6,742 $5,694
Total interest expense 1,852 1,455 3,552 2,751
====== ====== ====== ======
Net interest income 1,580 1,540 3,190 2,943
Provision for loan losses 55 53 124 88
====== ====== ====== ======
Net interest income after provision
for losses on 1,525 1,487 3,066 2,855
====== ====== ====== ======
Fees and service charges 220 170 437 319
(Loss) gain on sale of securities --- (3) --- (3)
Other noninterest income 36 47 74 89
====== ====== ====== ======
Total noninterest income 256 214 511 405
Total noninterest expense 1,401 1,364 2,825 2,603
====== ====== ====== ======
Income before income taxes 380 337 752 657
Income tax expense (benefit) 85 76 174 144
====== ====== ====== ======
Net income $ 295 $ 261 $ 578 $ 513
====== ====== ====== ======
Amortization of goodwill 64 62 127 108
====== ====== ====== ======
Adjusted cash net income $ 359 $ 323 $ 705 $ 62
====== ====== ====== ======
Basic earnings per share $0.27 $0.23 $0.53 $0.45
Adjusted cash basic earnings per share* $0.33 $0.29 $0.65 $0.55
Fully diluted earnings per share $0.27 $0.22 $0.53 $0.44
Adjusted cash fully diluted earnings per share* $0.33 $0.28 $0.65 $0.54
</TABLE>
* - Adjusted to exclude amortization of goodwill
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<TABLE>
At or for the At or for the
Three Months Ended Six Months Ended
September 30, September 30,
============ ============
2000 1999 2000 1999
==== ==== ==== ====
<S> <C> <C> <C> <C>
Other Data:
==========
Return on average assets (ratio of annualized
net income to total average assets) .7% .6% .6% .6%
Return on average equity (ratio of annualized
net income to total average equity) 6.1 5.4 6.0 5.2
Net interest margin** (FTE) 4.1 4.4 4.1 4.3
Non-performing assets to total assets 0.7 0.6 0.7 0.6
Allowance for loan losses to non-performing loans 154.5 168.2 154.5 168.2
Allowance for loan losses to loans receivable, net 1.0 1.0 1.0 1.0
Adjusted non-interest expenses/ Total revenues*** 69.4 69.7 69.5 70.6
Book value per share $16.78 $15.65 $16.78 $15.65
Tangible book value per share $11.90 $10.93 $11.90 $10.93
Total shares outstanding 1,165,256 1,232,500 1,165,256 1,232,500
Number of full service offices 6 6 6 6
Number of ATM locations 14 14 14 14
</TABLE>
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** Net interest income (FTE) annualized divided by average earning assets.
*** Adjusted non-interest expense excludes amortization of goodwill
Total revenues = Net interest income (FTE) + non-interest income
