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 14, 1997
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FFY FINANCIAL CORP.
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(Exact name of registrant as specified in its charter)
Delaware 0-21638 34-1735753
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(State or other (Commission File Number) (IRS Employer
jurisdiction of Identification
incorporation) Number)
724 Boardman-Poland Road, Youngstown, Ohio 44512
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: 330-726-3396
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N/A
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(Former name or former address, if changed since last report)
Item 5. Other Events
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On October 14, 1997, the Registrant issued the attached press release.
Item 7. Financial Statements and Exhibits
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FFY FINANCIAL CORP. AND SUBSIDIARY
<TABLE>
<CAPTION>
Selected Consolidated Financial Condition Data: September 30, June 30, %
($ in thousands) 1997 1997 Change
------------- -------- ------
<S> <C> <C> <C>
Total assets $610,974 $599,249 2%
Loans receivable, net 463,114 460,712 1%
Allowance for loan losses 2,928 2,962 -1%
Non-performing assets 4,053 3,993 2%
Securities available for sale 123,816 112,036 11%
Deposits 449,043 450,224 0%
Securities sold under agreements to repurchase:
Short-term 19,966 7,307 173%
Long-term 25,000 25,000 0%
Borrowed funds 21,200 27,455 -23%
Stockholders' equity 83,662 82,174 2%
</TABLE>
<TABLE>
<CAPTION>
Three months ended
September 30,
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Selected Consolidated Operations Data: %
($ in thousands except per share amounts) 1997 1996 Change
------- ------- ------
<S> <C> <C> <C>
Total interest income $11,958 $11,209 7%
Total interest expense 6,475 5,566 16%
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Net interest income 5,483 5,643 -3%
Provision for loan losses 142 155 -8%
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Net interest income after
provision for loan losses 5,341 5,488 -3%
Service charges 170 129 32%
Gain (loss) on sale of securities 48 (543) NM
Other non-interest income 110 90 22%
Total non-interest expense (2,761) (5,953) -54%
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Income (loss) before federal income taxes 2,908 (789) NM
Federal income tax expense (benefit) 1,005 (293) NM
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Net income (loss) $ 1,903 $ (496) NM
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Earnings (loss) per share $ 0.49 $ (0.10) NM
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Cash dividends declared per share $ 0.20 $ 0.175 14%
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<F-NM> Not a meaningful measure of performance.
</TABLE>
FFY FINANCIAL CORP. AND SUBSIDIARY
<TABLE>
<CAPTION>
Three months ended
September 30,
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Selected Financial Ratios and Other Data: 1997 1996
---- ----
<S> <C> <C>
Performance Ratios:
Return on assets (ratio of net income to
average total assets) 1.25%(2) -0.34%(2)(4)
Interest rate spread information:
Average during period (3) 3.16%(2) 3.28%(2)
End of period (3) 2.96% 2.93%
Net interest margin (1) (3) 3.76%(2) 4.08%(2)
Ratio of operating expense to average
total assets 1.81%(2) 4.13%(2)(4)
Return on equity (ratio of net income
to average equity) 9.24%(2) -1.94%(2)(4)
Efficiency ratio (5) 47.91% NM
Dividend payout ratio 40.82% NM
Liquidity ratio (Bank only) 7.15% 10.32%
Quality Ratios:
Non-performing assets to total assets at end
of period 0.66% 0.84%
Allowance for loan losses to non-performing
assets 72.24% 69.96%
Provision for loan losses to total loans
receivable, net 0.12%(2) 0.14%(2)
Capital Ratios:
Equity to total assets at end of period 13.69% 16.97%
Average equity to average assets 13.49% 17.76%
Book value per share $20.30 $19.98
Change in book value per share
due to SFAS No. 115 $ 0.19 $(0.07)
Ratio of average interest-earning assets to
average interest-bearing liabilities 1.14x 1.20x
Regulatory capital ratios: (Bank only)
Tangible capital - 1.50% required 9.67% 9.40%
Core capital - 3.00% required 9.67% 9.40%
Risk-based capital - 8.00% required 17.27% 16.97%
<F1> Net interest income divided by average interest earning assets -
calculated without consideration of the unrealized gain (loss) on
securities available for sale.
<F2> Annualized.
<F3> Ratio is presented on a fully taxable equivalent basis using the
company's federal statutory tax rate of 34%.
<F4> Ratio would be positively affected if calculated without regard to the
one-time SAIF special assessment of $1,987, net of tax.
<F5> Ratio is calculated without regard to gain (loss) on sale of
securities.
<F-NM>Not a meaningful measure of performance.
</TABLE>
(a) Exhibits
20. Press release, dated October 14, 1997.
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.
FFY FINANCIAL CORP.
Date: October 16, 1997 By: /s/ Jeffrey L. Francis
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Jeffrey L. Francis,
President and CEO
For Immediate Release For Further Information:
Tuesday, October 14, 1997 Jeff Francis, President and CEO
Terri Liutkus, Treasurer and CFO
330/726-3396 - telephone
330/758-1356 - telecopier
FFY Financial Corp. Reports 1st Quarter Net Income, Plans to Offer Expanded
Services, Regular Dividend Increase and Stock Repurchase Program
Youngstown, Ohio, October 14, 1997 - FFY Financial Corp. (NASDAQ:
FFYF) announced net income of $1.9 million, or $.49 per share for its first
fiscal quarter ended September 30, 1997. The net income for the current
quarter compared to a net loss of $496,000, or $.10 per share for the
quarter ended September 30, 1996, which included a one-time charge of
approximately $2.0 million after tax, or $.41 per share, from a special
assessment to recapitalize the SAIF.
Assets totaled $611.0 million at September 30, 1997, an increase of
$11.7 million, or 2.0% from $599.2 million at June 30, 1997. The increase
in assets was primarily the result of the use of short-term repurchase
agreements to fund security purchases. The securities portfolio increased
$11.8 million during the quarter and totaled $123.8 million at September 30,
1997. Short-term securities sold under agreements to repurchase increased
$12.7 million during the quarter and totaled $20.0 million at September 30,
1997.
Net loans receivable increased $2.4 million during the current quarter
and totaled $463.1 million at September 30, 1997. The growth in loans is
principally in 1-4 family mortgages. Deposits totaled $449.0 million at
September 30, 1997, a decline of $1.2 million, or .3% from $450.2 million at
June 30, 1997. The decline in deposits is the result of continued
competition for retail customer deposits.
The Company plans to offer expanded financial services to consumers.
FFY Financial Corp. will become a collection of businesses providing real
estate and financial services primarily to the household market under a
common brand name. The first of these expanded services was presented on
September 8, 1997, when the Company announced its affiliation with David B.
Roberts Real Estate, creating a new real estate brokerage company to bring
innovation to the banking and real estate industries and convenience to
consumers. First Federal has a 97 year history of providing banking and
mortgage services and David B. Roberts Co. has a history of over 15 years of
providing residential real estate services to consumers in Mahoning,
Trumbull and Columbiana counties. In addition to providing real estate
services, the Company will invest in a subsidiary that will offer property
and casualty insurance and is currently in the process of filing appropriate
applications with the State of Ohio.
At its meeting of October 14, 1997 the Company's board of directors
increased its regular quarterly dividend from 17.5 cents per share to 20
cents per share. The dividend will be paid on November 13, 1997 to
shareholders of record on October 31, 1997.
The Company also announced its intention to repurchase 5%, or 206,020
of its outstanding shares of common stock in open market transactions over a
twelve month period beginning October 20, 1997. The board of directors
approved the repurchase program in view of current economic and market
factors, alternate investment strategies and the strong capital position of
the Company and its subsidiary, First Federal Savings Bank of Youngstown.
The repurchased shares will become treasury shares available for general
corporate purposes. The Company believes that the repurchase of its shares
represents an attractive investment opportunity which will benefit the
Company and its stockholders. Since completing its conversion to a publicly
owned stock company on June 28, 1993, the Company has repurchased 2.8
million shares at an average price of $21.19 per share, including 808,000
shares at $26.00 per share repurchased in a tender offer which was completed
in December 1996.
Except for the historical information contained herein, the matters
discussed in this press release may be deemed to be forward-looking
statements that involve risks and uncertainties, including changes in
economic conditions 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, and other risks detailed from time to
time in the Company's SEC reports, including the report on Form 10-K for the
year ended June 30, 1997. Actual strategies and results in future periods
may differ materially from those currently expected. These forward-looking
statements represent the Company's judgment as of the date of this release.
The Company disclaims, however, any intent or obligation to update these
forward-looking statements.
