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<PAGE> 1
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): April 27, 2000
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
<PAGE> 2
ITEM 5. OTHER EVENTS.
On April 27, 2000, Local Financial Corporation issued a press release
announcing its first quarter earnings. The press release issued in connection
with this announcement is filed as an exhibit to this report and incorporated
herein by reference.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
(c) Exhibit:
See Exhibit Index following the signature page of this report, which is
incorporated herein by reference.
SIGNATURE
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: April 28, 2000 By: /s/Richard L. Park
-------------------------------------
Richard L. Park, Chief Financial Officer
<PAGE> 3
EXHIBIT INDEX
TO
FORM 8-K CURRENT REPORT
DATE OF REPORT: APRIL 27, 2000
<TABLE>
<CAPTION>
CONSECUTIVE
EXHIBIT NO. DESCRIPTION PAGE NO.
----------- ----------- --------
<S> <C> <C>
Exhibit 99 Press Release dated April 27, 2000 4
</TABLE>
<PAGE> 1
EXHIBIT 99
FOR IMMEDIATE RELEASE April 27, 2000
For further information contact
Richard L. Park, CFO
Local Financial Corporation
405-841-2298
LOCAL FINANCIAL CORPORATION
REPORTS FIRST QUARTER RESULTS
OKLAHOMA CITY--Local Financial Corporation announced strong results for
its first quarter of 2000 which ended March 31. Income before extraordinary item
for the quarter equaled $6.0 million or $0.29 basic earnings per share compared
to earnings per share of $0.25 for the same period last year, an increase of
16%. During this quarter, the Company purchased $32.1 million of Senior Notes
which had been issued in connection with the Company's recapitalization in 1997.
Although this action, reported as an extraordinary item, reduced net income for
the quarter by 4 cents per share, it will have a positive impact going forward.
The Company remains in excellent financial condition and is taking
other proactive measures to counter further interest rate increases and the
margin compression that could result for such increases. The investment
portfolio was reduced, shedding lower yielding investments, and noninterest
expenses are being carefully managed.
Local's asset quality remained high, with nonperforming loans
representing just 0.27% of total loans, a level well below that of its peers.
The Company's efficiency ratio of 56.6% also compares favorably with its peers.
Transaction accounts continued as a high priority, increasing at an annual rate
of 19.6% during the quarter.
Edward A. Townsend, Chairman and CEO, said, "We are very pleased to
announce positive results for the first quarter. Much of the credit for this
growth goes to our constantly expanding, enthusiastic team of banking
professionals. We are confident that Local Financial Corporation is in an
excellent position to consistently and prudently grow its statewide banking
franchise and to increase shareholder value during the remainder of 2000."
Local Oklahoma is the third largest commercial bank headquartered in
the state with assets of $2.3 billion and deposits in excess of $1.85 billion.
Local Oklahoma operates 51 branches across the state with significant presence
in Oklahoma City, Tulsa and Lawton. Its parent company, Local Financial
Corporation, trades on the NASDAQ national market under the symbol "LFIN".
<PAGE> 2
LOCAL FINANCIAL CORPORATION AND SUBSIDIARY
SUMMARY STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
For Three Months Ended
March 31,
----------------------------------------------------
2000 1999 Percent Change
---------- ---------- --------------
(Dollars in Thousands)
<S> <C> <C> <C>
Interest Income $ 45,800 $ 39,200 16.8
Interest Expense 26,762 22,171 20.7
---------- ----------
NET INTEREST INCOME 19,038 17,029 11.8
Provision for Loan Losses (500) (500) --
Other Operating Income 4,265 4,381 (2.6)
Other Operating Expense 13,442 12,841 4.7
---------- ----------
INCOME BEFORE TAXES AND
EXTRAORDINARY ITEM 9,361 8,069 16.0
Tax Provision 3,381 2,930 15.4
---------- ----------
INCOME BEFORE EXTRAORDINARY ITEM 5,980 5,139 16.4
Extraordinary Item--Purchase and Retirement of
Senior Notes, net of tax (871) -- --
---------- ----------
NET INCOME $ 5,109 $ 5,139 (0.6)
========== ========== ==========
Basic Earnings per Share Before Extraordinary Item $ 0.29 $ 0.25 16.0%
Diluted Earnings per Share Before Extraordinary Item $ 0.29 $ 0.25 16.0%
Net Income Basic Earnings per Share $ 0.25 $ 0.25 16.0%
Net Income Diluted Earnings per Share $ 0.25 $ 0.25 16.0%
</TABLE>
<PAGE> 3
LOCAL FINANCIAL CORPORATION AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands)
(unaudited)
<TABLE>
<CAPTION>
Three Months Ended March 31,
------------------------------------------------
2000 1999 % Change
---------- ---------- ----------
<S> <C> <C> <C>
INTEREST AND DIVIDEND INCOME:
Loans $ 36,239 $ 29,748 21.8
Securities available for sale 8,848 8,492 4.2
Federal Home Loan Bank of Topeka stock and Federal Reserve 423 665 (36.4)
Bank stock
Other investments 290 295 (1.7)
---------- ---------- ----------
Total interest and dividend income 45,800 39,200 16.8
---------- ---------- ----------
INTEREST EXPENSE:
Deposit accounts 20,400 17,184 18.7
Advances from the Federal Home Loan Bank of Topeka 4,109 2,624 56.6
Notes payable 2,253 2,363 (4.7)
---------- ---------- ----------
Total interest expense 26,762 22,171 20.7
---------- ---------- ----------
Net interest and dividend income 19,038 17,029 11.8
Provision for loan losses (500) (500) --
---------- ---------- ----------
Net interest and dividend income after provision for loan losses 18,538 16,529 12.2
---------- ---------- ----------
NONINTEREST INCOME:
Deposit related income 3,209 3,124 2.7
Loan fees and loan service charges 458 673 (31.9)
Net gains on sale of assets 164 327 (49.8)
Other 434 257 68.9
---------- ---------- ----------
Total noninterest income 4,265 4,381 (2.6)
---------- ---------- ----------
NONINTEREST EXPENSE:
Compensation and employee benefits 7,758 6,847 13.3
Deposit insurance premiums 92 238 (61.3)
Equipment and data processing 1,478 1,243 18.9
Occupancy 884 826 7.0
Advertising 156 344 (54.7)
Professional fees 351 501 (29.9)
Other 2,723 2,842 (4.2)
---------- ---------- ----------
Total noninterest expense 13,442 12,841 4.7
---------- ---------- ----------
Income before income taxes and extraordinary item 9,361 8,069 16.0
Provision for income taxes 3,381 2,930 15.4
---------- ---------- ----------
Income before extraordinary item 5,980 5,139 16.4
---------- ---------- ----------
Extraordinary item - purchase and retirement of 11% Senior
Notes, net of tax (871) -- --
---------- ---------- ----------
Net income $ 5,109 $ 5,139 (0.6)
========== ========== ==========
</TABLE>
<PAGE> 4
LOCAL FINANCIAL CORPORATION AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Dollars in thousands)
(unaudited)
<TABLE>
<CAPTION>
March 31, December 31,
2000 1999 % Change
----------- ------------ --------
<S> <C> <C> <C>
ASSETS
Cash and due from banks $ 41,208 $ 48,122 (14.4)
Interest bearing deposits with other banks 80,900 7,700 950.6
Securities available for sale 378,238 529,230 (28.5)
Loans receivable, net of allowance for loan losses of $28,727
at March 31, 2000 and $28,297 at December 31, 1999 1,709,885 1,685,550 1.4
Federal Home Loan Bank of Topeka stock and Federal
Reserve Bank stock, at cost 24,820 24,820 --
Premises and equipment, net 36,954 31,805 16.2
Assets acquired through foreclosure and repossession, net 564 723 (22.0)
Intangible assets, net 17,892 18,227 (1.8)
Deferred tax asset 14,113 14,217 (0.7)
Other assets 20,143 21,213 (5.0)
----------- ----------- --------
Total assets $ 2,324,717 $ 2,381,607 (2.4)
=========== =========== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Deposits:
Demand $ 483,965 $ 458,824 5.5
Savings 74,487 73,546 1.3
Time 1,300,319 1,315,970 (1.2)
----------- ----------- --------
Total deposits 1,858,771 1,848,340 0.6
Advances from the Federal Home Loan Bank of Topeka 235,030 302,035 (22.2)
Senior notes 43,160 75,250 (42.6)
Other liabilities 56,526 27,688 104.2
----------- ----------- --------
Total liabilities 2,193,487 2,253,313 (2.7)
----------- ----------- --------
Commitments and contingencies
Stockholders' Equity:
Common stock, $0.01 par value, 25,000,000 shares authorized; 20,537,269
shares issued and 20,537,269 shares outstanding at
March 31, 2000 and December 31, 1999 205 205 --
Preferred stock, $0.01 par value, 5,000,000 shares authorized;
none outstanding -- -- --
Additional paid-in capital 206,758 206,758 --
Retained earnings 77,298 72,189 7.1
Treasury stock, 60 shares, at cost (151,274) (151,274) --
Accumulated other comprehensive income (1,757) 416 (522.4)
----------- ----------- --------
Total stockholders' equity 131,230 128,294 2.3
----------- ----------- --------
Total liabilities and stockholders' equity $ 2,324,717 $ 2,381,607 (2.4)
=========== =========== ========
</TABLE>
<PAGE> 5
LOCAL FINANCIAL CORPORATION AND SUBSIDIARY
FINANCIAL HIGHLIGHTS
(Dollars in thousands, except share data)
(unaudited)
<TABLE>
<CAPTION>
Three Months Ended March 31,
------------------------------------------------
2000 1999 % Change
---------- ---------- ----------
<S> <C> <C> <C>
SELECTED FINANCIAL RATIOS
Yield on earning assets 8.06% 7.76% 3.9
Cost of funds 5.18 4.92 5.3
Interest rate spread 2.88 2.84 1.4
Net interest margin 3.35 3.37 (0.6)
Return on average assets before extraordinary item 1.02 0.99 3.0
Return on average equity before extraordinary item 18.69 17.23 8.5
Stockholders' equity to total assets 5.64 5.90 (4.4)
PER SHARE DATA
Basic earnings per share before extraordinary item $ 0.29 $ 0.25 16.0
Diluted earnings per share before extraordinary item $ 0.29 $ 0.25 16.0
Book value per share $ 6.39 $ 6.04 5.8
Average shares outstanding (in thousands) 20,537 20,537 --
</TABLE>
<TABLE>
<CAPTION>
March 31, December 31,
2000 1999 % Change
---------- ------------ ----------
<S> <C> <C> <C>
FINANCIAL CONDITION DATA
Total assets $2,324,717 $2,381,607 (2.4)%
Loans receivable, net 1,709,885 1,685,550 1.4
Securities available for sale 378,238 529,230 (28.5)
Deposits 1,858,771 1,848,340 0.6
Advances from the Federal Home Loan Bank of Topeka 235,030 302,035 (22.2)
Senior notes 43,160 75,250 (42.6)
Stockholders' equity 131,230 128,294 2.3
Allowance for loan losses 28,727 28,297 1.5
</TABLE>
<PAGE> 6
LOCAL FINANCIAL CORPORATION AND SUBSIDIARY
NON-PERFORMING ASSETS
(Dollars in Thousands)
(unaudited)
<TABLE>
<CAPTION>
March 31, December 31,
2000 1999 Net Change
---------- ------------ ----------
<S> <C> <C> <C>
Non-accruing loans:
Single-family residential $ 2,116 2,043 73
Commercial 416 3,086 (2,670)
Construction 93 -- 93
Consumer 460 601 (141)
---------- ---------- ----------
Total $ 3,085 5,730 (2,645)
Accruing loans 90 days or more delinquent:
Single-family residential $ 40 10 30
Commercial 1,064 749 315
Construction -- -- --
Consumer 485 324 161
---------- ---------- ----------
Total $ 1,589 1,083 506
Foreclosed Assets:
Single-family residential $ 117 122 (5)
Commercial 246 435 (189)
Construction -- -- --
Consumer 201 166 35
---------- ---------- ----------
Total foreclosures $ 564 723 (159)
---------- ---------- ----------
Total non-performing assets $ 5,238 7,536 (2,298)
========== ========== ==========
Total non-performing assets as a percentage of total assets 0.23% 0.32%
========== ==========
Total non-performing loans as a percentage of total allowance 16.27% 24.08%
========== ==========
Total non-performing assets as a percentage of total loans 0.30% 0.44%
========== ==========
Total non-performing loans as a percentage of total loans 0.27% 0.40%
========== ==========
Total non-performing assets as a percentage of total capital 3.99% 5.87%
========== ==========
</TABLE>
<PAGE> 7
LOCAL FINANCIAL CORPORATION AND SUBSIDIARY
ALLOWANCE FOR LOAN AND LEASE LOSSES
(Dollars in Thousands)
(unaudited)
<TABLE>
<CAPTION>
Three Months Ended Year Ended
March 31, December 31,
----------------------------- ------------
2000 1999 1999
---------- ---------- ----------
<S> <C> <C> <C>
Beginning Balance $ 28,297 $ 27,901 $ 27,901
Provision 500 500 2,000
Allowances Acquired -- -- 340
Charge-Offs
Commercial (265) (157) (2,397)
Consumer (255) (147) (1,142)
Residential (64) -- (314)
---------- ---------- ----------
Total Charge-Offs (584) (304) (3,853)
---------- ---------- ----------
Recoveries 514 213 1,909
---------- ---------- ----------
Net Losses (70) (91) (1,944)
---------- ---------- ----------
---------- ---------- ----------
Ending Balance $ 28,727 $ 28,310 28,297
========== ========== ==========
Net Losses To Average Loans 0.00% 0.01% 0.12%
========== ========== ==========
</TABLE>
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