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 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 October 19, 1999 , 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 October 19, 1999.
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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: October 20, 1999 By: /s/ Jeffrey L. Francis
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Jeffrey L. Francis,
President and CEO
For Immediate Release For Further Information:
Tuesday, October 19, 1999 Jeff Francis, President and CEO
Terri Liutkus, Treasurer and CFO
330/726-3396 - phone
330/758-1356 - fax
FFY Financial Corp. Reports 1st Quarter Net Income and Regular Dividend
Increase
Youngstown, Ohio, October 19, 1999 - FFY Financial Corp. (NASDAQ:
FFYF) announced net income of $1.8 million, or $.27 per diluted share for
its first fiscal quarter ended September 30, 1999. Net income for the
current quarter compared to net income of $1.9 million, or $.25 per diluted
share for last year's quarter ended September 30, 1998.
Assets totaled $662.7 million at September 30, 1999, a decline of
$13.0 million, or 2% from $675.7 million at June 30, 1999. The decline in
assets was primarily the result of the use of securities maturities and
sales proceeds to support loan growth, stock repurchases and a decline in
deposit balances during the quarter.
Net loans receivable increased $6.7 million, or 1% during the current
quarter and totaled $461.0 million at September 30, 1999, including $345,000
in loans available for sale. The securities portfolio declined $19.9
million during the quarter and totaled $170.4 million at September 30, 1999.
Deposits declined $11.5 million primarily due to a decline in certificate
accounts, and totaled $445.9 million at September 30, 1999.
On July 12, 1999, the Company announced a name change for its
affiliates to better reflect a single identity for the banking, insurance
and real estate lines of business the Company operates. As a result, First
Federal Savings Bank of Youngstown, a wholly owned subsidiary of FFY
Financial Corp., became FFY Bank on October 1, 1999. The Company's
insurance affiliate became FFY Insurance and the Company's real estate
affiliate is Coldwell Banker FFY Real Estate. Non-interest expenses related
to the name change totaled $196,000 before tax for the quarter ended
September 30, 1999.
At its meeting of October 19, 1999 the Company's board of directors
increased its regular quarterly dividend from 11.25 cents per share to 12.5
cents per share. The dividend will be paid on November 11, 1999 to
shareholders of record on October 29, 1999.
On February 16, 1999, the Company announced its intention to
repurchase 10%, or 758,936 of its then outstanding shares of common stock in
open market transactions over a twelve-month period which began on February
23, 1999. To date 734,353 shares have been repurchased at an average price
of $18.43 per share, leaving 24,583 shares remaining to be purchased. Since
completing its conversion to a publicly owned stock company on June 28,
1993, the Company has repurchased 7.1 million shares at an average price of
$12.09 per share, returning $85.9 million to shareholders.
Except for the historical information contained herein, the matters
discussed in this press release may be deemed to be forward-looking
statements that involve risks and uncertainties, including changes in
economic conditions in the Company's market area, changes in policies by
regulatory agencies, fluctuations in interest rates, demand for loans in the
Company's market area and competition, and other risks detailed from time to
time in the Company's SEC reports, including the report on Form 10-K for the
year ended June 30, 1999. Actual strategies and results in future periods
may differ materially from those currently expected. These forward-looking
statements represent the Company's judgment as of the date of this release.
The Company disclaims, however, any intent or obligation to update these
forward-looking statements.
FFY FINANCIAL CORP. AND SUBSIDIARIES
(unaudited)
<TABLE>
<CAPTION>
Selected Consolidated Financial Condition Data: September 30, June 30, %
($ in thousands) 1999 1999 Change
------------- -------- ------
<S> <C> <C> <C>
Total assets $662,690 $675,691 - 2%
Loans receivable, net 460,609 453,839 1%
Loans available for sale 345 442 -22%
Allowance for loan losses 2,673 2,645 1%
Non-performing assets 2,114 2,356 -10%
Securities available for sale 170,385 190,326 -10%
Deposits 445,873 457,343 -3%
Short-term repurchase agreements (1) 6,615 6,618 -0%
Long-term repurchase agreements (1) 51,300 51,300 0%
Short-term borrowed funds 24,903 22,800 9%
Long-term borrowed funds 60,000 60,000 0%
Stockholders' equity 66,711 70,117 -5%
</TABLE>
<TABLE>
<CAPTION>
Three months ended
September 30,
---------------------------------
Selected Consolidated Operations Data: %
($ in thousands except per share amounts) 1999 1998 Change
---- ---- ------
<S> <C> <C> <C>
Total interest income $ 12,405 $ 12,161 2%
Total interest expense 6,813 6,711 2%
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Net interest income 5,592 5,450 3%
Provision for loan losses 101 125 -19%
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Net interest income after
provision for loan losses 5,491 5,325 3%
Service Charges 255 198 29%
Gain on sale of securities 1 64 NM
Gain on sale of loans 60 94 -36%
Other non-interest income 150 261 -43%
Total non-interest expense (3,335) (3,127) 7%
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Income before income taxes
and minority interest 2,622 2,815 -7%
Income tax expense 781 930 -16%
Minority interest in loss
of consolidated subsidiaries (2) 0 NM
Net income $1,843 $ 1,885 -2%
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Basic earnings per share $0.28 $ 0.26 (2) 8%
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Diluted earnings per share $0.27 $ 0.25 (2) 8%
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Cash dividends declared per share $0.125 $ 0.1125 (2) 11%
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<FN>
<F1> Securities sold under agreements to repurchase.
<F2> Figures were restated to reflect a 100% stock dividend, effected in
the form of a two-for-one stock split, declared on January 19, 1999.
<FNM> Not a meaningful measure of performance.
</FN>
</TABLE>
FFY FINANCIAL CORP. AND SUBSIDIARIES
(unaudited)
<TABLE>
<CAPTION>
Three months ended
September 30,
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Selected Financial Ratios and Other Data: 1999 1998
---- ----
<S> <C> <C>
Performance Ratios:
Return on average assets (1) 1.10% (7) 1.16% (7)
Return on average equity (2) 10.88% (7) 9.10% (7)
Interest rate spread information:
Average during period (3) 3.07% (7) 3.00% (7)
End of period (3) 3.02% 2.90%
Net interest margin (3) (4) 3.54% (7) 3.58% (7)
Operating expense to average assets 1.98% (7) 1.93% (7)
Efficiency ratio (5) 54.83% 52.89%
Dividend payout ratio (6) 46.30% 45.00%
Quality Ratios (end of period):
Non-performing assets to total assets 0.32% 0.58%
Allowance for loan losses to
non-performing assets 126.44% 70.83%
Allowance for loan losses to
gross loans outstanding 0.57% 0.56%
Capital Ratios:
Equity to total assets at end of period 10.07% 12.77%
Average equity to average assets 10.06% 12.77%
Book value per share $ 9.58 $ 10.62 (8)
Tangible book value per share $ 9.55 $ 10.61 (8)
Change in book value and tangible book
value per share due to SFAS No. 115 ($0.67) $ 0.18 (8)
Ratio of average interest-earning
assets to average interest-bearing
liabilities 1.10 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>- Annualized.
<F8>- Per share figures were restated to reflect a 100% stock dividend
declared on January 19, 1999.
</FN>
</TABLE>
