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 19, 1999
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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 January 19, 1999, the Registrant issued the attached press
release.
Item 7. Financial Statements and Exhibits
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(a) Exhibits
1. Press release, dated January 19, 1999.
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 21, 1999 By: /s/ Jeffrey L. Francis
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Jeffrey L. Francis,
President and CEO
For Immediate Release For Further Information:
Tuesday, January 19, 1999 Jeff Francis, President and CEO
Terri Liutkus, Treasurer and CFO
330/726-3396 - phone
330/758-1356 - fax
FFY Financial Corp. Reports 2nd Quarter
Net Income, 100% Stock Dividend and Regular Dividend
Youngstown, Ohio, January 19, 1999 - FFY Financial Corp. (NASDAQ:
FFYF) announced net income for the its second fiscal quarter ended December
31, 1998 of $2.0 million, or $.27 per diluted share after restatement for a
100% stock dividend which was declared today. Net income for the current
quarter compared to net income for the prior period quarter of $1.9 million,
or $.25 per diluted share after restatement for the stock dividend. Diluted
earnings per share without the restatement would have been $.54 for the
quarter ended December 31, 1998 and $.50 for the quarter ended December 31,
1997. Current quarter performance represents a 5% increase in net income
and an 8% increase in earnings per diluted share over the quarter ended
December 31, 1997.
Assets totaled $672.7 million at December 31, 1998, an increase of
$21.0 million, or 3% from $651.7 million at June 30, 1998. The increase in
assets was primarily the result of growth in the securities portfolio, which
increased $29.4 million during the period and totaled $170.2 million at
December 31, 1998.
Net loans receivable declined $12.5 million, or 3% during the six
months ended December 31, 1998 and totaled $469.9 million, including
$849,000 in loans available for sale at December 31, 1998. The decline in
loans was principally due to repayments on 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 $456.7 million at
December 31, 1998, an increase of $12.7 million, or 3% from $444.0 million
at June 30, 1998. Long-term borrowings, which increased $35.0 million
during the six-month period ended December 31, 1998, were used to fund
growth in the securities portfolio and to repay short-term repurchase
agreements and short-term borrowings.
On January 15, 1999, the Company announced the formation of a new real
estate affiliate combining the operations of its existing real estate
affiliate, First Real Estate, Ltd., dba David B. Roberts Co., with Coldwell
Banker United Group Realtors to form Coldwell Banker FFY Real Estate
(Coldwell Banker/FFY). Both full service real estate firms currently
operate in the Mahoning Valley with a combined staff of eighty agents and
five offices. Once completed, with operations to take effect February 1,
1999, Coldwell Banker/FFY will have more than 20% of the Youngstown area
real estate market with sales expected to exceed $70.0 million. The former
Moonraker restaurant will serve as the new headquarters for Coldwell
Banker/FFY and branch locations will continue to operate in Canfield and
Liberty. The three office sites are strategically located to provide broad
coverage of the Mahoning Valley market.
At its meeting on January 19, 1999 the Company's board of directors
declared its regular quarterly dividend of 22.5 cents per share to be paid
on February 11, 1999 to shareholders of record on January 29, 1999. Also at
its meeting on January 19, 1999, the board of directors declared a 100%
stock dividend, which is equivalent to a two for one stock split, to be paid
on March 5, 1999 to shareholders of record on February 19, 1999.
On October 7, 1998 the Company announced its intention to repurchase
5%, or 198,026 of its then outstanding shares of common stock in open market
transactions over a twelve-month period which began on October 13, 1998. To
date and before adjustment for the stock split, 107,575 shares have been
repurchased at an average price of $31.52 per share. The number of shares
remaining in the current repurchase program will be adjusted to reflect the
100% stock dividend mentioned above.
Except for the historical information contained herein, the matters
discussed in this press release may be deemed to be forward-looking
statements that involve risks and uncertainties, including changes in
economic conditions in the Company's market area, changes in policies by
regulatory agencies, fluctuations in interest rates, demand for loans in the
Company's market area and competition, and other risks detailed from time to
time in the Company's SEC reports, including the report on Form 10-K for
the year ended June 30, 1998 and Form 10-Q for the quarter ended September
30, 1998. Actual strategies and results in future periods may differ
materially from those currently expected. These forward-looking statements
represent the Company's judgment as of the date of this release. The
Company disclaims, however, any intent or obligation to update these
forward-looking statements.
FFY FINANCIAL CORP. AND SUBSIDIARIES
(unaudited)
<TABLE>
<CAPTION>
December 31, June 30, %
Selected Consolidated Financial Condition Data: 1998 1998 Change
- ----------------------------------------------- ------------ ------- ------
($ in thousands)
<S> <C> <C> <C>
Total assets $672,755 $651,746 3%
Loans receivable, net 469,066 482,463 -3%
Loans available for sale 849 0 NM
Allowance for loan losses 2,679 2,740 -2%
Non-performing assets 3,616 3,324 9%
Securities available for sale 170,160 140,793 21%
Deposits 456,665 444,017 3%
Short-term repurchase agreements (1) 9,478 13,088 -28%
Long-term repurchase agreements (1) 51,300 51,300 0%
Short-term borrowed funds 29,500 33,985 -13%
Long-term borrowed funds 35,000 0 NM
Stockholders' equity 82,399 84,216 -2%
</TABLE>
<TABLE>
<CAPTION>
Three months ended Six months ended
December 31, December 31,
---------------------------------- -----------------------------------
% %
Selected Consolidated Operations Data: 1998 1997 Change 1998 1997 Change
- -------------------------------------- ------- ------- ------ ------- ------- ------
($ in thousands except per share amounts)
<S> <C> <C> <C> <C> <C> <C>
Total interest income $12,384 $12,004 3% $24,545 $23,963 2%
Total interest expense 6,742 6,351 6% 13,453 12,826 5%
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Net interest income 5,642 5,653 0% 11,092 11,137 0%
Provision for loan losses 124 184 -33% 250 326 -23%
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Net interest income after
provision for loan losses 5,518 5,469 1% 10,842 10,811 0%
Service charges 218 183 19% 417 352 18%
Gain (loss) on sale of securities (7) 51 -114% 58 100 -42%
Gain on sale of loans 277 2 NM 389 2 NM
Other non-interest income 194 143 36% 437 252 73%
Total non-interest expense (3,138) (2,920) 7% (6,265) (5,681) 10%
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Income before income taxes 3,062 2,928 5% 5,878 5,836 1%
Income tax expense:
Federal 1,007 988 2% 1,919 1,993 -4%
State 22 0 NM 41 0 NM
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Net income $ 2,033 $ 1,940 5% $ 3,918 $ 3,843 2%
===================== =====================
Basic earnings per share $ 0.28 (2) $ 0.26 (2) 8% $ 0.54 (2) $ 0.51 (2) 6%
===================== =====================
Diluted earnings per share $ 0.27 (2) $ 0.25 (2) 8% $ 0.52 (2) $ 0.49 (2) 6%
===================== =====================
<FN>
<F1> - Securities sold under agreements to repurchase.
<F2> - Earnings per share figures have been restated in accordance with
Statement of Financial Accounting Standards No. 128 - Earnings per
Share, to reflect a 100% stock dividend declared on January 19, 1999.
Without this restatement, basic and diluted earnings per share would
have been $0.56 and $0.54, respectively, for the three months ended
December 31, 1998, compared to $0.51 and $0.50, respectively, for the
three months ended December 31, 1997. Basic and diluted earnings per
share would have been $1.07 and $1.04, respectively, for the six
months ended December 31, 1998, compared to $1.02 and $0.98,
respectively, for the six months ended December 31, 1997.
<FNM> - Not a meaningful measure of performance.
Note: Certain amounts in the 1997 consolidated operations data have been
reclassified to conform with the 1998 presentation.
</FN>
</TABLE>
FFY FINANCIAL CORP. AND SUBSIDIARIES
(unaudited)
<TABLE>
<CAPTION>
Three months ended Six months ended
December 31, December 31,
-------------------------- --------------------------
Selected Financial Ratios and Other Data: 1998 1997 1998 1997
- ----------------------------------------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Performance Ratios:
Return on average assets (1) 1.22% (8) 1.27% (8) 1.19% (8) 1.26% (8)
Return on average equity (2) 9.82% (8) 9.30% (8) 9.46% (8) 9.27% (8)
Interest rate spread information:
Average during period (3) 3.01% (8) 3.29% (8) 3.00% (8) 3.22% (8)
End of period (3) 2.93% 3.04% 2.93% 3.04%
Net interest margin (3) (4) 3.60% (8) 3.90% (8) 3.59% (8) 3.83% (8)
Operating expense to average assets 1.88% (8) 1.91% (8) 1.90% (8) 1.86% (8)
Efficiency ratio (5) 49.52% 48.77% 50.75% 48.35%
Performance Ratios Excluding Affiliates (7):
Return on average assets (1) 1.24% (8) 1.29% (8) 1.21% (8) 1.27% (8)
Return on average equity (2) 9.96% (8) 9.47% (8) 9.63% (8) 9.35% (8)
Operating expense to average assets 1.80% (8) 1.82% (8) 1.81% (8) 1.82% (8)
Efficiency ratio (5) 48.20% 47.24% 49.20% 47.57%
Quality Ratios (end of period):
Non-performing assets to total assets 0.54% 0.62% 0.54% 0.62%
Allowance for loan losses to non-performing assets 74.09% 74.80% 74.09% 74.80%
Allowance for loan losses to gross loans outstanding 0.56% 0.61% 0.56% 0.61%
Capital Ratios:
Equity to total assets at end of period 12.25% 13.56% 12.25% 13.56%
Average equity to average assets 12.41% 13.67% 12.59% 13.58%
Book value per share $10.64 (9) $10.27 (9) $10.64 (9) $10.27 (9)
Tangible book value per share $10.63 (9) $10.26 (9) $10.63 (9) $10.26 (9)
Change in book value and tangible book value
per share due to SFAS No. 115 $ 0.15 (9) $ 0.12 (9) $ 0.15 (9) $ 0.12 (9)
Ratio of average interest-earning assets to
average interest-bearing liabilities 1.15 x 1.15 x 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 withot 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.
<F9> - Book value per share figures have been restated in accordance with
Statement of Financial Accounting Standards No. 128 - Earnings per
Share, to reflect a 100% stock dividend declared on January 19, 1999.
Without this restatement, the book value per share figures would have
been twice the amount shown above.
</FN>
</TABLE>
