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 20, 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
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On January 20, 1998, the Registrant issued the attached press release.
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Item 7. Financial Statements and Exhibits
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(a) Exhibits
20. Press release, dated January 20, 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: January 22, 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:
- ----------------------------------------------- December 31, June 30, %
($ in thousands) 1997 1997 Change
------------ -------- ------
<S> <C> <C> <C>
Total assets $616,326 $599,249 3%
Loans receivable, net 462,683 460,712 0%
Allowance for loan losses 2,856 2,962 -4%
Non-performing assets 3,818 3,993 -4%
Securities available for sale 125,949 112,036 12%
Deposits 453,859 450,224 1%
Securities sold under agreements to repurchase:
Short-term 13,043 7,307 79%
Long-term 25,000 25,000 0%
Borrowed funds 32,000 27,455 17%
Stockholders' equity 83,572 82,174 2%
</TABLE>
<TABLE>
<CAPTION>
Three months ended Six months ended
December 31, December 31,
Selected Consolidated Operations Data: ----------------------------- ----------------------------
- -------------------------------------- % %
($ in thousands except per share amounts) 1997 1996 Change 1997 1996 Change
---- ---- ------ ---- ---- ------
<S> <C> <C> <C> <C> <C> <C>
Total interest income $12,004 $11,588 4% $23,963 $22,797 5%
Total interest expense 6,351 5,957 7% 12,826 11,553 11%
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Net interest income 5,653 5,631 0% 11,137 11,244 -1%
Provision for loan losses 184 198 -7% 326 353 -8%
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Net interest income after
provision for loan losses 5,469 5,433 1% 10,811 10,891 -1%
Service charges 183 133 38% 352 263 34%
Gain (loss) on sale of securities 51 173 -71% 100 (370) NM
Other non-interest income 49 86 -43% 158 176 -10%
Total non-interest expense (2,824) (2,984) -5% (5,585) (8,907) -37%
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Income before federal income taxes 2,928 2,841 3% 5,836 2,053 184%
Federal income tax expense 988 940 5% 1,993 647 208%
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Net income $ 1,940 $ 1,901 2% $ 3,843 $ 1,406 173%
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Basic earnings per share $ 0.51 $ 0.40 28% $ 1.02 $ 0.30 240%
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Diluted earnings per share $ 0.50 $ 0.39 28% $ 0.98 $ 0.29 238%
================== ==================
Cash dividends declared per share $ 0.20 $ 0.175 14% $ 0.40 $ 0.35 14%
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<F1> Note 1 - Certain amounts in the 1996 consolidated operations data have
been reclassified to conform with the 1997 presentation.
<F2> NM - Not a meaningful measure of performance.
</TABLE>
FFY FINANCIAL CORP. AND SUBSIDIARIES
(unaudited)
<TABLE>
<CAPTION>
Three months ended Six months ended
December 31, December 31,
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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) 1.27% (5) 1.27% (5) 1.26% (5) 0.48% (5)
Interest rate spread information:
Average during period (1) 3.29% (5) 3.12% (5) 3.22% (5) 3.20% (5)
End of period (1) 3.04% 3.02% 3.04% 3.02%
Net interest margin (1)(2) 3.90% (5) 3.92% (5) 3.83% (5) 4.00% (5)
Ratio of operating expense to average
total assets 1.85% (5) 1.99% (5) 1.83% (5) 3.03% (5)
Return on equity (ratio of net income
to average equity) 9.30% (5) 7.38% (5) 9.27% (5) 2.74% (5)
Efficiency ratio (3) 47.99% 51.01% 47.95% 76.24%
Dividend payout ratio (4) 40.00% 44.87% 40.82% 120.69%
Quality Ratios:
Non-performing assets to total assets at end
of period 0.62% 0.86% 0.62% 0.86%
Allowance for loan losses to non-performing
assets 74.80% 70.35% 74.80% 70.35%
Provision for loan losses to total loans
receivable, net 0.16% (5) 0.17% (5) 0.14% (5) 0.16% (5)
Capital Ratios:
Equity to total assets at end of period 13.56% 14.31% 13.56% 14.31%
Average equity to average assets 13.67% 17.16% 13.58% 17.45%
Book value per share $20.53 $19.30 $20.53 $ 19.30
Change in book value per share
due to SFAS No. 115 $ 0.24 $ 0.04 $ 0.24 $ 0.04
Ratio of average interest-earning assets to
average interest-bearing liabilities 1.15 x 1.20 x 1.14 x 1.20 x
Regulatory capital ratios: (Bank only)
Tangible capital - 1.50% required 9.16% 9.92% 9.16% 9.92%
Core capital - 3.00% required 9.16% 9.92% 9.16% 9.92%
Risk-based capital - 8.00% required 16.26% 17.48% 16.26% 17.48%
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<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>
Exhibit 20
For Immediate Release For Further Information:
Tuesday, January 20, 1998 Jeff Francis, President and CEO
Terri Liutkus, Treasurer and CFO
330/726-3396 - telephone
330/758-1356 - telecopier
FFY Financial Corp. Reports 2nd Quarter Earnings and Regular Dividend
Youngstown, Ohio, January 20, 1998 - FFY Financial Corp. (NASDAQ:
FFYF) announced net income of $1.9 million, or $.50 per share for its second
fiscal quarter ended December 31, 1997. The net income for the current
quarter compared to earnings of $1.9 million, or $.39 per share for the
quarter ended December 31, 1996.
Assets totaled $616.3 million at December 31, 1997, an increase of
$17.1 million, or 2.8% from $599.2 million at June 30, 1997. The increase
in assets was primarily the result of the use of short-term repurchase
agreements and borrowings to fund security purchases. The securities
portfolio increased $13.9 million during the six-month period and totaled
$125.9 million at December 31, 1997. Short-term securities sold under
agreements to repurchase and borrowed funds increased $5.7 million and $4.5
million, respectively during the six-month period and totaled $13.0 million
and $32.0 million, respectively at December 31, 1997.
Net loans receivable totaled $462.7 million at December 31, 1997, an
increase of $2.0 million from June 30, 1997. The growth in loans is
principally 1-4 family mortgages. Deposits totaled $453.9 million at
December 31, 1997, an increase of $3.6 million, or .8% from June 30, 1997.
At its meeting on January 20, 1998, the Company's board of directors
approved its regular quarterly dividend of 20 cents per share. The dividend
will be paid on February 12, 1998 to shareholders of record on January 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,
72,000 shares have been repurchased at an average cost of $31.52 per share.
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 $21.46 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
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 quarter ended September 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.
