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
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
On October 21, 1998, the Registrant issued the attached press
release.
Item 7. Financial Statements and Exhibits
(a) Exhibits
1. Press release, dated October 20, 1998.
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 21, 1998 By: /s/ Jeffrey L. Francis
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Jeffrey L. Francis,
President and CEO
For Immediate Release For Further Information:
Tuesday, October 20, 1998 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 and Regular Dividend Increase
Youngstown, Ohio, October 20, 1998 - FFY Financial Corp. (NASDAQ:
FFYF) announced net income of $1.9 million, or $.50 per diluted share for
its first fiscal quarter ended September 30, 1998. The net income for the
current quarter compared to net income of $1.9 million, or $.49 per diluted
share for the quarter ended September 30, 1997.
Assets totaled $658.6 million at September 30, 1998, an increase of
$6.9 million, or 1% from $651.7 million at June 30, 1998. The increase in
assets was primarily the result of growth in the securities portfolio, which
increased $10.6 million during the quarter and totaled $151.4 million at
September 30, 1998.
Net loans receivable decreased $12.2 million, or 3% during the current
quarter and totaled $470.3 million at September 30, 1998, including $1.7
million in loans available for sale. The decline in loans was principally
due to repayments on $17.1 million in short-term loans made to customers in
June 1998 to fund their stock subscriptions in an initial public offering by
a local financial institution that converted from a mutual to stock form of
ownership. Deposits totaled $448.5 million at September 30, 1998, an
increase of $4.5 million, or 1% from $444.0 million at June 30, 1998.
Borrowed funds increased $20.5 million during the quarter and totaled $54.5
million at September 30, 1998. Proceeds from borrowed funds were used to
fund growth in the securities portfolio and to repay short-term securities
sold under agreements to repurchase.
At its meeting of October 20, 1998 the Company's board of directors
increased its regular quarterly dividend from 20 cents per share to 22.5
cents per share. The dividend will be paid on November 12, 1998 to
shareholders of record on October 30, 1998.
On October 7, 1998 the Company announced its intention to repurchase
5%, or 198,026 of its outstanding shares of common stock in open market
transactions over a twelve month period which began on October 13, 1998.
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 3.0 million shares at an average price of $22.05 per share,
including 19,000 shares repurchased in this most recently announced buyback.
Except for the historical information contained herein, the matters
discussed in this press release may be deemed to be forward-looking
statements that involve risks and uncertainties, including changes in
economic conditions in the Company's market area, changes in policies by
regulatory agencies, fluctuations in interest rates, demand for loans in the
Company's market area and competition, and other risks detailed from time to
time in the Company's SEC reports, including the report on Form 10-K for the
year ended June 30, 1998. Actual strategies and results in future periods
may differ materially from those currently expected. These forward-looking
statements represent the Company's judgment as of the date of this release.
The Company disclaims, however, any intent or obligation to update these
forward-looking statements.
FFY FINANCIAL CORP. AND SUBSIDIARIES
(unaudited)
<TABLE>
<CAPTION>
September 30, June 30, %
Selected Consolidated Financial Condition Data: 1998 1998 Change
- ----------------------------------------------- ------------- -------- ------
($ in thousands)
<S> <C> <C> <C>
Total assets $658,591 $651,746 1%
Loans receivable, net 468,554 482,463 -3%
Loans available for sale 1,725 0 NM
Allowance for loan losses 2,683 2,740 -2%
Non-performing assets 3,788 3,324 14%
Securities available for sale 151,355 140,793 8%
Deposits 448,498 444,017 1%
Securities sold under agreements to repurchase:
Short-term 9,021 13,088 -31%
Long-term 51,300 51,300 0%
Borrowed funds 54,500 33,985 60%
Stockholders' equity 84,127 84,216 0%
</TABLE>
<TABLE>
<CAPTION>
Three months ended
September 30,
----------------------------
%
Selected Consolidated Operations Data: 1998 1997 Change
- -------------------------------------- ------- ------- ------
($ in thousands except per share amounts)
<S> <C> <C> <C>
Total interest income $12,161 $11,958 2%
Total interest expense 6,711 6,475 4%
------------------
Net interest income 5,450 5,483 -1%
Provision for loan losses 125 142 -12%
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Net interest income after
provision for loan losses 5,325 5,341 0%
Service charges 198 170 16%
Gain on sale of securities 64 48 33%
Other non-interest income 355 110 223%
Total non-interest expense (3,145) (2,761) 14%
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Income before federal income taxes 2,797 2,908 -4%
Federal income tax expense 912 1,005 -9%
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Net income $ 1,885 $ 1,903 -1%
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Basic earnings per share $ 0.51 $ 0.50 2%
==================
Diluted earnings per share $ 0.50 $ 0.49 2%
==================
Cash dividends declared per share $ 0.225 $ 0.20 13%
==================
<FN>
<F1> NM - Not a meaningful measure of performance.
</FN>
</TABLE>
FFY FINANCIAL CORP. AND SUBSIDIARIES
(unaudited)
<TABLE>
<CAPTION>
Three months ended
September 30,
--------------------------
Selected Financial Ratios and Other Data: 1998 1997
- ----------------------------------------- ----------- -----------
<S> <C> <C>
Performance Ratios:
Return on average assets (1) 1.16% (8) 1.25% (8)
Return on average equity (2) 9.10% (8) 9.24% (8)
Interest rate spread information:
Average during period (3) 3.00% (8) 3.13% (8)
End of period (3) 2.90% 2.96%
Net interest margin (3)(4) 3.58% (8) 3.76% (8)
Operating expense to average assets 1.94% (8) 1.81% (8)
Efficiency ratio (5) 52.36% 47.91%
Dividend payout ratio (6) 45.00% 40.82%
Performance Ratios Excluding Affiliates (7):
Return on average assets (1) 1.19% (8) 1.25% (8)
Return on average equity (2) 9.30% (8) 9.24% (8)
Operating expense to average assets 1.84% (8) 1.81% (8)
Efficiency ratio (5) 50.58% 47.91%
Quality Ratios (end of period):
Non-performing assets to total assets 0.58% 0.66%
Allowance for loan losses to non-performing assets 70.83% 72.24%
Allowance for loan losses to gross loans outstanding 0.56% 0.60%
Capital Ratios:
Equity to total assets at end of period 12.77% 13.69%
Average equity to average assets 12.77% 13.49%
Book value per share $21.24 $20.30
Tangible book value per share $21.23 $20.28
Change in book value and tangible book value
per share due to SFAS No. 115 $ 0.36 $ 0.19
Ratio of average interest-earning assets to
average interest-bearing liabilities 1.14 x 1.14 x
<FN>
<F1> - Ratio of net income to average total assets.
<F2> - Ratio of net income to average equity.
<F3> - Ratio is presented on a fully taxable equivalent basis using the
company's federal statutory tax rate of 34%.
<F4> - Net interest income divided by average interest earning assets -
calculated without consideration of the unrealized gain on securities
available for sale.
<F5> - Ratio is calculated without consideration to goodwill amortization and
gain on sale of securities.
<F6> - Cash dividends declared per share divided by diluted earnings per
share.
<F7> - Ratios presented are not inclusive of the operations of the company's
real estate and insurance affiliates which began operations in September
1997 and April 1998, respectively.
<F8> - Annualized.
</FN>
</TABLE>
