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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 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 21, 1998
LOCAL FINANCIAL CORPORATION
(Exact name of registrant as specified in its charter)
Delaware
(State of Incorporation)
001-13949 65-0424192
(Commission File No.) (I.R.S. Employer Identification No.)
3601 N.W. 63rd Street, Oklahoma City, Oklahoma 73116
(Address of principal executive offices) (zip code)
Registrant's telephone number, including area code: 405-841-2298
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ITEM 5. OTHER EVENTS.
On October 21, 1998, Local Financial Corporation ("Local Financial")
announced third quarter earnings of $4.7 million or $0.23 basic earnings per
share bringing year-to-date earnings to $13.5 million or $0.66 basic earnings
per share. In conjunction with the earnings announcement, the Company reported
the successful completion of its acquisition of BankSouth Corporation, the
Lawton, Oklahoma bank holding company for Citizens Bank. BankSouth had assets,
liabilities and stockholders' equity of $177.5 million, $167.8 million and $9.7
million, respectively, as of September 30, 1998 and was accounted for as a
purchase in Local Financial's balance sheet at that date.
The press release issued in connection with this announcement is filed
as an exhibit to this report.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
(c) Exhibit:
See Exhibit Index following the signature page of this report, which
is incorporated herein by reference.
SIGNATURES
Pursuant to the requirements of the Securities and Exchanges Act of
1934, the registrant has duly caused this report to be signed on its behalf by
the undersigned hereunto duly authorized.
LOCAL FINANCIAL CORPORATION
Date: October 30, 1998 By: /s/ Richard L. Park
---------------------------------------
Richard L. Park, Chief Financial Officer
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EXHIBIT INDEX
TO
FORM 8-K CURRENT REPORT
DATE OF REPORT: OCTOBER 21, 1998
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CONSECUTIVE
EXHIBIT NO. DESCRIPTION PAGE NO.
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<S> <C> <C>
Exhibit 99 Press Release Dated October 21, 1998 4
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EXHIBIT 99
LOCAL FINANCIAL CORPORATION ANNOUNCES
3RD QUARTER EARNINGS
Oklahoma City, Oklahoma, October 21, 1998. Local Financial Corporation,
holding company for Local Federal Bank and Local America Bank, reported net
income for the 3rd calendar quarter ended September 30, 1998 was $4.7 million
or $0.23 basic earnings per share (based on 20.5 million average shares)
bringing year-to-date earnings to $13.5 million or $0.66 basic earnings per
share compared to a net loss per share of ($5.00) and ($6.18) for the same
periods one year ago. It should be noted that last year's third quarter loss
included the effects of restructuring the balance sheet in connection with
Local's acquisition by the Townsend Investment Group.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
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<CAPTION>
For Three Months Ended For Nine Months Ended
September 30 September 30
--------------------------- ---------------------------
1998 1997 1998 1997
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(in 000's)
<S> <C> <C> <C> <C>
Interest Income $ 36,386 $ 47,453 $ 106,902 $ 151,017
Interest Expense 22,351 35,181 68,578 112,380
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NET INTEREST INCOME $ 14,035 $ 12,272 $ 38,324 $ 38,637
Provision for Loan Losses (500) (25,353) (950) (44,047)
Gain/(Loss) on Asset Sales 176 (125,485) 535 (151,644)
Other Operating Income 3,376 2,888 9,624 9,738
Other Operating Expense 9,689 13,568 26,603 33,452
---------- ---------- ---------- ----------
INCOME BEFORE TAXES $ 7,398 (149,246) $ 20,930 (180,768)
Tax Provision (Benefit) 2,673 (50,795) 7,431 (59,082)
NET INCOME $ 4,725 $ (98,451) $ 13,499 $ (121,686)
========== ========== ========== ==========
Basic Earnings per Share $ 0.23 (5.00) $ 0.66 (6.18)
Diluted Earnings per Share $ 0.23 (5.00) $ 0.66 (6.18)
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The Company also announced the successful completion of its acquisition of
BankSouth Corporation, the Lawton, Oklahoma bank holding company for Citizens
Bank. BankSouth had assets, liabilities and stockholders' equity of $177.5
million, $167.8 million and $9.7 million, respectively, as of September 30,
1998 and was accounted for as a purchase in Local's balance sheet at that date.
The acquisition will increase total statewide deposits for Local Financial
Corporation to $1.7 billion and makes it the largest depository institution in
the Lawton market. Chairman and CEO Edward A. Townsend states "we are
extremely pleased to make this announcement only about a year after the change
to in-state control of Local. We believe this acquisition will be accretive to
future earnings and further our goal to better serve our customers statewide."
He further stated that "former Citizens Bank customers will see an increase in
the level of products and services available to them from an Oklahoma-based,
Oklahoma-focused financial institution."
-End of Press Release-
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For any questions please contact Richard L. Park, (405) 841-2298.
To the extent that statements in this report relate to the plans,
objectives or future performance of Local Financial Corporation, these
statements are considered to be forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995. Such statements are
based on management's current expectations and the current economic
environment. Actual events and results in future periods may differ materially
from those currently expected due to various risks and uncertainties.
Additional discussion of factors affecting Local Financial's business and
prospects is contained in its periodic filings with the Securities and Exchange
Commission.
