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 15, 1997
FFY FINANCIAL CORP.
(Exact name of registrant as specified in its charter)
Delaware 0-21638 34-1735753
(State or other (Commission File Number) (IRS Employer
jurisdiction of Identification
incorporation) Number)
724 Boardman-Poland Road, Youngstown, Ohio 44512
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: 330-726-3396
N/A
(Former name or former address, if changed since last report)
Item 5. Other Events
On April 15, 1997, the Registrant issued the attached press release.
Item 7. Financial Statements and Exhibits
FFY FINANCIAL CORP. AND SUBSIDIARY
(unaudited)
<TABLE>
<CAPTION>
Selected Consolidated Financial Condition Data: March 31, June 30, %
($ in thousands) 1997 1996 Change
--------- -------- ------
<S> <C> <C> <C>
Total assets $598,667 $575,602 4%
Loans receivable, net 454,730 438,790 4%
Allowance for loan losses 3,160 3,439 -8%
Non-performing assets 4,319 4,673 -8%
Securities available for sale 115,291 109,836 5%
Deposits 447,789 456,541 -2%
Securities sold under agreements to repurchase 34,576 6,640 NM
Borrowed funds 21,500 1,200 NM
Stockholders' equity 84,390 101,921 -17%
</TABLE>
<TABLE>
<CAPTION>
Three months ended Nine months ended
March 31, March 31,
-------------------------------- --------------------------------
Selected Consolidated Operations Data: % %
($ in thousands except per share amounts) 1997 1996 Change 1997 1996 Change
---- ---- ------ ---- ---- ------
<S> <C> <C> <C> <C> <C> <C>
Total interest income $ 11,418 $ 10,944 4% $ 34,216 $ 32,674 5%
Total interest expense 6,021 5,508 9% 17,515 16,664 5%
--------------------- ---------------------
Net interest income 5,397 5,436 -1% 16,701 16,010 4%
Provision for loan losses 208 77 170% 561 226 148%
--------------------- ---------------------
Net interest income after
provision for loan losses 5,189 5,359 -3% 16,140 15,784 2%
Non-interest income 232 268 -13% 671 801 -16%
Gain (loss) on sale of securities 24 4 NM (346) 21 NM
Total non-interest expense (2,647) (3,263) -19% (11,614) (9,063) 28%
--------------------- ---------------------
Income before federal income taxes 2,798 2,368 18% 4,851 7,543 -36%
Federal income tax expense 887 790 12% 1,534 2,538 -40%
--------------------- ---------------------
Net income $ 1,911 $ 1,578 21% $ 3,317 $ 5,005 -34%
===================== =====================
Earnings per share $ 0.47 $ 0.32 47% $ 0.72 $ 0.98 -27%
===================== =====================
Cash dividends declared per share $ 0.175 $ 0.15 17% $ 0.525 $ 0.45 17%
===================== =====================
</TABLE>
FFY FINANCIAL CORP. AND SUBSIDIARY
(unaudited)
<TABLE>
<CAPTION>
Three months ended Nine months ended
March 31, March 31,
------------------- -----------------
Selected Financial Ratios and Other Data: 1997 1996 1997 1996
---- ---- ---- ----
<S> <C> <C> <C> <C>
Performance Ratios:
Return on assets (ratio of net income to
average total assets) 1.30%(2) 1.10%(2) 0.75%(2) 1.16%(2)
Interest rate spread information:
Average during period (3) 3.18%(2) 3.08%(2) 3.20%(2) 2.99%(2)
End of period (3) 3.06% 2.81% 3.06% 2.81%
Net interest margin (1) (3) 3.81%(2) 3.92%(2) 3.93%(2) 3.84%(2)
Ratio of operating expense to average
total assets 1.79%(2) 2.28%(2) 2.63%(2) 2.11%(2)
Return on equity (ratio of net income
to average equity) 9.15%(2) 6.03%(2) 4.59%(2) 6.30%(2)
Dividend payout ratio 37.23% 46.88% 72.92% 45.92%
Liquidity Ratio (Bank only) 6.93% 11.48% 6.93% 11.48%
Quality Ratios:
Non-performing assets to total assets at end
of period 0.72% 0.88% 0.72% 0.88%
Allowance for loan losses to non-performing
assets 73.17% 66.89% 73.17% 66.89%
Provision for loan losses to total loans
receivable, net 0.18%(2) 0.07%(2) 0.16%(2) 0.07%(2)
Capital Ratios:
Equity to total assets at end of period 14.10% 18.35% 14.10% 18.35%
Average equity to average assets 14.16% 18.29% 16.35% 18.48%
Book value per share $19.50 $20.25 $19.50 $20.25
Change in book value per share
due to SFAS No. 115 $(0.14) $(0.07) $(0.14) $(0.07)
Ratio of average interest-earning assets to
average interest-bearing liabilities 1.15x 1.21x 1.18x 1.21x
Regulatory capital ratios: (Bank only)
Tangible capital - 1.50% required 9.94% 10.43% 9.94% 10.43%
Core capital - 3.00% required 9.94% 10.43% 9.94% 10.43%
Risk-based capital - 8.00% required 17.67% 19.23% 17.67% 19.23%
<F1> Net interest income divided by average interest earning assets -
calculated without consideration of the unrealized 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%.
</TABLE>
(a) Exhibits
20. Press release, dated April 15, 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: April 18, 1997 By: /s/ Jeffrey L. Francis
Jeffrey L. Francis,
President and CEO
For Immediate Release For Further Information:
Tuesday, April 15, 1997 Jeff Francis, President and CEO
Terri Liutkus, Treasurer and CFO
330/726-3396 - telephone
330/758-1356 - telecopier
FFY Financial Corp. Reports 3rd Quarter Earnings,
Regular Dividend and Stock Repurchase Program
Youngstown, Ohio April 15, 1997 - FFY Financial Corp. (NASDAQ: FFYF)
announced net income of $1.9 million or $.47 per share for its 3rd fiscal
quarter ended March 31, 1997. Earnings for the current quarter compared to
$1.6 million, or $.32 per share for the prior year quarter ended March 31,
1996.
Assets totaled $598.7 million at March 31, 1997, an increase of $16.4
million, or 2.8% from $582.3 million at December 31, 1996. The growth in
assets was largely the result of a $31.8 million increase in the securities
portfolio, which totaled $115.3 million at March 31, 1997, principally due
to the purchase of securities using $25 million in repurchase agreements,
enabling the Company to further leverage its excess capital. Net loans
receivable increased $1.5 million and totaled $454.7 million at March 31,
1997 with growth continuing to be predominantly in 1-4 family mortgages.
Deposits totaled $447.8 million at March 31, 1997, a decline of $12.9
million, or 2.8% from $460.7 million at December 31, 1996 due primarily to
the maturity of brokered certificates of deposit during the quarter.
Nonperforming indirect auto loans totaled $812,000 at March 31, 1997,
a 26% decline from $1.1 million at December 31, 1996. The provision for loan
losses totaled $208,000 for the current quarter, bringing the allowance for
losses on this portfolio to 86% of nonperforming loans at March 31, 1997,
compared to 45% at December 31, 1996. At March 31, 1997, after an analysis
of the returns generated by the existing portfolio and potential returns
from such a line of business, the Bank exited the indirect auto loan
business.
At its meeting of April 15, 1997 the Company's board of directors
approved its regular quarterly dividend of 17.5 cents per share. The
dividend will be paid on May 15, 1997 to shareholders of record on April 30,
1997.
The Company also announced its intention to repurchase 5% of its
outstanding shares, or 215,943 shares, in open market transactions beginning
April 21, 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 2.6 million shares at an average price
of $20.80 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, 1996 and Form 10-Q for the quarters ended September 30,
1996 and December 31, 1996. 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.
