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 21, 1998
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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 April 21, 1998 , the Registrant issued the attached press release.
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Item 7. Financial Statements and Exhibits
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(a) Exhibits
1. Press release, dated April 21, 1998 .
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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 23, 1998 By: /s/ Jeffrey L. Francis
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Jeffrey L. Francis,
President and CEO
FFY FINANCIAL CORP. AND SUBSIDIARIES
(unaudited)
<TABLE>
<CAPTION>
Selected Consolidated Financial Condition Data: March 31, June 30, %
- ----------------------------------------------- 1998 1997 Change
($ in thousands) --------- -------- ------
<S> <C> <C> <C>
Total assets $644,647 $599,249 8%
Loans receivable, net 463,899 460,712 1%
Allowance for loan losses 2,785 2,962 -6%
Non-performing assets 3,432 3,993 -14%
Securities available for sale 134,506 112,036 20%
Deposits 451,507 450,224 0%
Securities sold under agreements to repurchase:
Short-term 30,975 7,307 324%
Long-term 51,300 25,000 105%
Borrowed funds 16,000 27,455 -42%
Stockholders' equity 84,442 82,174 3%
</TABLE>
<TABLE>
<CAPTION>
Three months ended Nine months ended
March 31, March 31,
Selected Consolidated Operations Data: ---------------------------- -----------------------------
- ----------------------------------------- % %
($ in thousands except per share amounts) 1998 1997 Change 1998 1997 Change
---------------------------- -----------------------------
<S> <C> <C> <C> <C> <C> <C>
Total interest income $12,074 $11,418 6% $36,037 $ 34,216 5%
Total interest expense 6,317 6,051 4% 19,143 17,605 9%
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Net interest income 5,757 5,367 7% 16,894 16,611 2%
Provision for loan losses 115 208 -45% 442 561 -21%
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Net interest income after
provision for loan losses 5,642 5,159 9% 16,452 16,050 3%
Service charges 162 135 20% 515 405 27%
Gain (loss) on sale of securities 54 24 125% 153 (346) NM
Other non-interest income 294 97 203% 549 266 106%
Total non-interest expense (3,056) (2,617) 17% (8,737) (11,524) -24%
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Income before federal income taxes 3,096 2,798 11% 8,932 4,851 84%
Federal income tax expense 1,128 887 27% 3,121 1,534 103%
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Net income $ 1,968 $ 1,911 3% $ 5,811 $ 3,317 75%
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Basic earnings per share $ 0.53 $ 0.48 10% $ 1.54 $ 0.74 108%
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Diluted earnings per share $ 0.51 $ 0.47 9% $ 1.49 $ 0.72 107%
================== ===================
Cash dividends declared per share $ 0.20 $ 0.175 14% $ 0.60 $ 0.525 14%
================== ===================
<F1> Note 1 - Certain amounts in the 1997 consolidated operations data have
been reclassified to conform with the 1998 presentation.
<F2> NM - Not a meaningful measure of performance.
</TABLE>
FFY FINANCIAL CORP. AND SUBSIDIARIES
(unaudited)
<TABLE>
<CAPTION>
Three months ended Nine months ended
March 31, March 31,
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Selected Financial Ratios and Other Data: 1998 1997 1998 1997
------------------------ ------------------------
<S> <C> <C> <C> <C>
Performance Ratios:
Return on assets (ratio of net income to
average total assets) 1.27%(5) 1.30%(5) 1.26%(5) 0.75%(5)
Interest rate spread information:
Average during period(1) 3.28%(5) 3.15%(5) 3.20%(5) 3.17%(5)
End of period(1) 2.85% 3.06% 2.85% 3.06%
Net interest margin(1)(2) 3.89%(5) 3.79%(5) 3.84%(5) 3.91%(5)
Ratio of operating expense to average
total assets 1.97%(5) 1.77%(5) 1.90%(5) 2.61%(5)
Return on equity (ratio of net income
to average equity) 9.45%(5) 9.15%(5) 9.33%(5) 4.59%(5)
Efficiency ratio(3) 49.19% 46.74% 48.65% 66.68%
Dividend payout ratio(4) 39.22% 37.23% 40.27% 72.92%
Quality Ratios:
Non-performing assets to total assets at end
of period 0.53% 0.72% 0.53% 0.72%
Allowance for loan losses to non-performing
assets 81.15% 73.17% 81.15% 73.17%
Provision for loan losses to total loans
receivable, net 0.10%(5) 0.18%(5) 0.13%(5) 0.16%(5)
Capital Ratios:
Equity to total assets at end of period 13.10% 14.10% 13.10% 14.10%
Average equity to average assets 13.41% 14.16% 13.52% 16.35%
Book value per share $20.83 $19.50 $20.83 $19.50
Change in book value per share
due to SFAS No. 115 $ 0.22 ($0.14) $ 0.22 ($0.14)
Ratio of average interest-earning assets to
average interest-bearing liabilities 1.15x 1.15x 1.15x 1.18x
Regulatory capital ratios: (Bank only)
Tangible capital - 1.50% required 9.00% 9.94% 9.00% 9.94%
Core capital - 3.00% required 9.00% 9.94% 9.00% 9.94%
Risk-based capital - 8.00% required 16.23% 17.67% 16.23% 17.67%
<F1> - Ratio is presented on a fully taxable equivalent basis using the
company's federal statutory tax rate of 34%.
<F2> - Net interest income divided by average interest earning assets -
calculated without consideration of the unrealized gain (loss) on
securities available for sale.
<F3> - Ratio is calculated without regard to gain (loss) on sale of
securities.
<F4> - Cash dividends declared per share divided by diluted earnings per
share.
<F5> - Annualized.
</TABLE>
For Immediate Release For Further Information:
Tuesday, April 21, 1998 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 and Regular Dividend
Youngstown, Ohio, April 21, 1998 - FFY Financial Corp. (NASDAQ: FFYF)
announced net income of $2.0 million, or $.51 per share for its third fiscal
quarter ended March 31, 1998. The net income for the current quarter
compared to earnings of $1.9 million, or $.47 per share for the quarter
ended March 31, 1997.
Assets totaled $644.6 million at March 31, 1998, an increase of $45.4
million, or 7.6% from $599.2 million at June 30, 1997. The increase in
assets was primarily due to growth in securities and cash and cash
equivalents of $22.5 million and $18.9 million, respectively, during the
nine months ended March 31, 1998. Short-term securities sold under
agreements to repurchase, which increased $23.7 million during the period
were used primarily to fund the increase in cash and cash equivalents. The
$26.3 million increase in long-term securities sold under agreements to
repurchase was used to fund growth in the securities portfolio and to
refinance other borrowings, which declined $11.5 million during the nine
months ended March 31, 1998.
Net loans receivable totaled $463.9 million at March 31, 1998, an
increase of $3.2 million from June 30, 1997. The growth in loans was
principally 1-4 family mortgages. Deposits totaled $451.5 million at March
31, 1998, an increase of $1.3 million from June 30, 1997.
In October 1997, the Company announced its plans to offer expanded
financial services to consumers, including real estate services and property
and casualty insurance. Real estate services, which began in September
1997, and insurance sales, which began operations on April 1, 1998 are
offered through investments of FFY Holdings, Inc., a wholly owned subsidiary
of FFY Financial Corp. The operations of FFY Holdings, Inc. for the three
and nine months ended March 31, 1998 were net losses of $23,000 and $59,000,
respectively.
At its meeting on April 21, 1998, the Company's board of directors
approved its regular quarterly dividend of 20 cents per share. The dividend
will be paid on May 14, 1998 to shareholders of record on April 30, 1998.
On October 20, 1997, the Company announced its intention to repurchase
5%, or 206,020 of its then outstanding shares of common stock in open market
transactions over a twelve month period beginning on that date. To date,
81,800 shares have been repurchased at an average cost of $31.76 per share
and 124,220 shares remain to be repurchased. Since completing its
conversion to a publicly owned stock company on June 28, 1993, the Company
has repurchased 2.9 million shares at an average price of $21.50 per share.
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
Bank'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 and Form 10-Q for the quarters ended September 30,
1997 and December 31, 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.
