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 18, 2000
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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 18, 2000, 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 January 18, 2000.
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SIGNATURES
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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 19, 2000 By: /s/ Jeffrey L. Francis
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Jeffrey L. Francis,
President and CEO
For Immediate Release For Further Information:
Tuesday, January 18, 2000 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, Regular Dividend
and Share Repurchase Program
Youngstown, Ohio, January 18, 2000 - FFY Financial Corp. (NASDAQ: FFYF)
announced net income for its second fiscal quarter ended December 31, 1999
of $2.0 million, or $.30 per diluted share. Net income for the current
quarter compared to net income for the same prior year quarter of $2.0
million, or $.27 per diluted share. Current quarter performance represents
an 11% increase in earnings per diluted share over the quarter ended
December 31, 1998. Current quarter return on equity was 12.07%, the
Company's highest ever reported and a 23% increase over the same prior year
quarter.
Assets totaled $665.6 million at December 31, 1999, a decline of $10.1
million, or 1% from $675.7 million at June 30, 1999. The decline in assets
was the result of cash used to fund stock repurchases and the decline in
deposit balances during the six month period.
Loans receivable increased $16.8 million, or 4% during the six months ended
December 31, 1999 and totaled $471.1 million, including $57,000 in loans
available for sale at December 31, 1999. The securities portfolio, which
totaled $163.1 million at December 31, 1999, declined $27.3 million, or 14%
during the six month period as a result of maturities, sales proceeds and a
decline in market value related to the current rising interest rate
environment. Deposits declined $14.3 million, or 3% primarily due to a
decline in certificate accounts, and totaled $443.0 million at December 31,
1999. Borrowed funds increased $10.7 million and totaled $93.5 million at
December 31, 1999.
At its meeting on January 18, 2000 the Company's board of directors declared
its regular quarterly dividend of 12.5 cents per share to be paid on
February 10, 2000 to stockholders of record on January 31, 2000. The board
of directors also approved a stock repurchase program to buyback up to $3.0
million of the Company's common stock in open market transactions over a
twelve month period beginning January 25, 2000. The Company believes that
the repurchase of its shares represents an attractive investment opportunity
that will benefit the Company and its stockholders. The board approved this
repurchase program based on current market and economic factors, alternate
investment strategies and the strong capital position of the Company and its
subsidiary, FFY Bank. The repurchased shares will become treasury shares
available for general corporate purposes. 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 $12.11 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
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 and Form 10-Q for the quarter ended September 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>
Three months ended Six months ended
December 31, December 31,
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Selected Financial Ratios and Other Data: 1999 1998 1999 1998
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<S> <C> <C> <C> <C>
Performance Ratios:
Return on average assets (1) 1.18% (7) 1.22% (7) 1.14% (7) 1.19% (7)
Return on average equity (2) 12.07% (7) 9.82% (7) 11.46% (7) 9.46% (7)
Interest rate spread information:
Average during period (3) 3.01% (7) 3.01% (7) 3.04% (7) 3.00% (7)
End of period (3) 2.95% 2.93% 2.95% 2.93%
Net interest margin (3) (4) 3.49% (7) 3.60% (7) 3.51% (7) 3.59% (7)
Operating expense to average assets 1.87% (7) 1.88% (7) 1.92% (7) 1.90% (7)
Efficiency ratio (5) 51.74% 49.52% 53.29% 50.75%
Dividend payout ratio (6) 41.67% 41.67% 43.86% 43.27%
Quality Ratios (end of period):
Non-performing assets to total assets 0.42% 0.54% 0.42% 0.54%
Allowance for loan losses to non-performing assets 96.05% 74.09% 96.05% 74.09%
Allowance for loan losses to gross loans outstanding 0.56% 0.56% 0.56% 0.56%
Capital Ratios:
Equity to total assets at end of period 9.74% 12.25% 9.74% 12.25%
Average equity to average assets 9.75% 12.41% 9.91% 12.59%
Book value per share $ 9.44 $10.64 $ 9.44 $10.64
Tangible book value per share $ 9.41 $10.63 $ 9.41 $10.63
Change in book value and tangible book value
per share due to SFAS No. 115 ($ 0.87) $ 0.15 ($ 0.87) $ 0.15
Ratio of average interest-earning assets to
average interest-bearing liabilities 1.10 x 1.15 x 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.
</FN>
</TABLE>
FFY FINANCIAL CORP. AND SUBSIDIARIES
(unaudited)
<TABLE>
<CAPTION>
Selected Consolidated Financial Condition Data: December 31, June 30, %
($ in thousands) 1999 1999 Change
-----------------------------------
<S> <C> <C> <C>
Total assets $665,627 $675,691 -1%
Loans receivable, net 471,047 453,839 4%
Loans available for sale 57 442 NM
Allowance for loan losses 2,674 2,645 1%
Non-performing assets 2,784 2,356 18%
Securities available for sale 163,057 190,326 -14%
Deposits 442,997 457,343 -3%
Short-term repurchase agreements(1) 6,615 6,618 0%
Long-term repurchase agreements(1) 51,300 51,300 0%
Short-term borrowed funds 43,540 22,800 91%
Long-term borrowed funds 50,000 60,000 -17%
Stockholders' equity 64,828 70,117 -8%
</TABLE>
<TABLE>
<CAPTION>
Three months ended Six months ended
December 31, December 31,
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Selected Consolidated Operations Data: % %
($ in thousands except per share amounts) 1999 1998 Change 1999 1998 Change
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<S> <C> <C> <C> <C> <C> <C>
Total interest income $12,279 $12,384 -1% $24,684 $24,545 1%
Total interest expense 6,835 6,742 1% 13,648 13,453 1%
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Net interest income 5,444 5,642 -4% 11,036 11,092 -1%
Provision for loan losses 105 124 -15% 206 250 -18%
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Net interest income after
provision for loan losses 5,339 5,518 -3% 10,830 10,842 0%
Service charges 288 218 32% 544 417 30%
Gain (loss) on sale of securities 28 (7) NM 29 58 -50%
Gain on sale of loans 59 277 -79% 118 389 -70%
Other non-interest income 173 194 -11% 324 437 -26%
Total non-interest expense (3,099) (3,138) -1% (6,434) (6,265) 3%
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Income before income taxes and
minority interest 2,788 3,062 -9% 5,411 5,878 -8%
Income tax expense 836 1,029 -19% 1,617 1,960 -18%
Minority interest in loss of consolidated subsidiaries (2) 0 NM (3) 0 NM
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Net income $ 1,954 $ 2,033 -4% $ 3,797 $ 3,918 -3%
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Basic earnings per share $ 0.31 $ 0.28 11% $ 0.59 $ 0.54 9%
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Diluted earnings per share $ 0.30 $ 0.27 11% $ 0.57 $ 0.52 10%
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Cash dividends declared per share $ 0.125 $0.1125 11% $ 0.25 $ 0.225 11%
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<FN>
<F1> - Securities sold under agreements to repurchase.
<FNM>- Not a meaningful measure of performance.
</FN>
</TABLE>
