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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) January 26, 1999
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NORTHEAST PENNSYLVANIA FINANCIAL CORP.
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(Exact name of registrant as specified in its charter)
Delaware 1-13793 06-1504091
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(State or other Jurisdiction of (Commission (IRS Employer
incorporation or organization) File Number) Identification No.)
12 E. Broad Street, Hazleton, Pennsylvania 18201
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(Address of principal executive offices)
(570) 459-3700
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(Registrant's telephone number, including area code)
Not Applicable
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(Former name or former address, if changed since last report.)
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ITEM 5. OTHER EVENTS.
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On January 26, 1999, Northeast Pennsylvania Financial Corp. (the
"Company"), issued a press release which reported earnings and the declaration
of a cash dividend for the fiscal quarter ended December 31, 1998.
A press release announcing the Company's first quarter earnings and the
declaration of a cash dividend is attached as Exhibit 99.1.
ITEM 7. FINANCIAL STATEMENTS AND OTHER EXHIBITS.
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Exhibit 99.1 Press Release dated January 26, 1999.
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 hereunto duly authorized.
Dated: January 26, 1999 By: /s/ E. Lee Beard
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E. Lee Beard
President and Chief Executive Officer
Dated: January 26, 1999 By: /s/ Patrick J. Owens, Jr.
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Patrick J. Owens, Jr.
Senior Vice President and
Chief Financial Officer
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EXHIBIT 99.1 PRESS RELEASE
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NEWS RELEASE
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FOR IMMEDIATE RELEASE
DATE: January 26, 1999
CONTACT: Patrick J. Owens, Jr.
Treasurer
PHONE: (570) 459-3722 office
FAX: (570) 450-6110
NORTHEAST PENNSYLVANIA FINANCIAL CORP. REPORTS FIRST QUARTER
1999 EARNINGS AND ANNOUNCES CASH DIVIDEND.
Hazleton, Pa........ E. Lee Beard, President and Chief Executive Officer for
Northeast Pennsylvania Financial Corp. (the "Company") (Amex; NEP), the holding
company for First Federal Bank (the "Bank") reported a net profit for the
quarter ended December 31, 1998 of $1.2 million, or $.19 diluted earnings per
share compared to a $557,000 net profit for the respective prior year period.
Due to the Company's recent initial public offering, earnings per share figures
for prior year periods are not applicable.
The Board of Directors of Northeast Pennsylvania Financial Corp. today announced
a cash dividend for the three months ended December 31, 1998, of $.05 per share
to shareholders of record on February 8, 1999. Payment of the cash dividend will
be made on or about February 19, 1999.
Net interest income for the quarter ended December 31, 1998 rose $1.1 million,
or 35.2%, over the prior year's quarter. This increase was primarily
attributable to the interest income from higher outstanding loan and investment
balances funded by new capital raised during the initial public offering, offset
in part by higher interest expense on outstanding Federal Home Loan Bank
("FHLB") advances. The provision for loan losses decreased $220,000 or 82.4% for
the quarter ended December 31, 1998, over the prior year quarter. This is due to
the provision in the prior year quarter including the effect of a change to the
Company's loan loss reserve methodology. Non-performing assets have remained
relatively stable with balances of $1.4 million and $1.0 million at December 31,
1998 and December 31, 1997, respectively.
Non-interest income for the quarter ended December 31, 1998, increased $224,000
over the prior year's quarter. This increase was primarily due to increases in
service charges and fee income, as well as gains resulting from the sale of
securities and premium income received through Abstractors, Inc. Non-interest
expense increased $838,000, or 37.0%, for the quarter ended December 31, 1998
over the prior year's quarter primarily due to increases in salaries and
employee benefits, resulting primarily from additions to staff, as well as
accruals for the Bank's employee stock ownership plan and the Company's
stock-based incentive plans. Also contributing to the increase in non-interest
expense were additional professional fees associated with being a public
company.
(continued)
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NORTHEAST PENNSYLVANIA FINANCIAL CORP.
The Company had total assets of $523.0 million as of December 31, 1998,
representing an increase of $788,000, over the balance of $522.2 million as of
September 30, 1998. The increases were in cash and loans.
Northeast Pennsylvania Financial Corp. is the holding company of Abstractors
Inc., a wholly-owned title insurance agency, and First Federal Bank, which
serves the greater Hazleton area, Mountaintop, Bloomsburg, Lehighton, and all of
Schuylkill County, through ten office locations.
(continued)
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NORTHEAST PENNSYLVANIA FINANCIAL CORP.
SELECTED FINANCIAL INFORMATION
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA AND RATIOS)
<TABLE>
<CAPTION>
Three months ended
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December 31,
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1998 1997
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OPERATING DATA:
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<S> <C> <C>
Total interest income $ 8,968 $ 6,914
Total interest expense 4,636 3,709
Provision for loan losses 47 267
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Net interest income after provision loan losses 4,285 2,938
Non-interest income 384 160
Non-interest expense 3,104 2,266
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Income before income taxes 1,565 832
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Net income $ 1,178 $ 557
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Earnings per share - basic $0.20 N/A
Earnings per share - diluted $0.19 N/A
BALANCE SHEET DATA: 12/31/98 9/30/98
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Total assets $523,056 $522,268
Total securities 214,107 220,864
Loans, net 284,264 282,706
Deposits 321,178 324,005
FHLB Advances 111,994 106,498
Total equity 85,199 87,434
Book value per share $ 15.06 $ 14.80
THREE MONTHS ENDED
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DECEMBER 31,
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SELECTED RATIOS: 1998 1997
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Return on average assets(1) .90% .59%
Return on average equity(1) 5.79% 8.00%
Net interest margin(1) 3.72% 3.59%
Allowance for loan losses to loans, net .80% .57%
</TABLE>
(1) ANNUALIZED
