EXHIBIT 99
For Immediate Release For Further Information:
Tuesday, October 17, 2000 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
Youngstown, Ohio, October 17, 2000 - FFY Financial Corp. (NASDAQ:
FFYF) announced net income of $1.5 million, or $.23 per diluted share for
its first fiscal quarter ended September 30, 2000. Net income for the
current quarter compared to net income of $1.8 million, or $.27 per diluted
share for last year's quarter ended September 30, 1999. First quarter
performance included $118,000 in pre-tax expenses related to the pending
merger of equals with First Place Financial Corp. and a $95,000 pre-tax
charge representing a valuation allowance on the Company's investment in a
condominium project. Net income for the quarter ended September 30, 2000,
excluding merger expenses and the valuation allowance, totaled $1.7 million,
or $.26 per diluted share.
Assets totaled $684.0 million at September 30, 2000, an increase of
$9.5 million, or 1% from $674.5 million at June 30, 2000. The growth in
assets was primarily the result of growth in the loan portfolio.
Loans receivable increased $8.2 million, or 2% during the current
quarter and totaled $492.9 million at September 30, 2000, including $354,000
in loans available for sale. Deposits declined $6.7 million, or 1% during
the quarter primarily due to a decline in passbook and certificate accounts
partially offset by growth in money market accounts, and totaled $439.4
million at September 30, 2000. The growth in loans and decline in deposits
was primarily funded with borrowings, which increased $10.5 million, or 11%
during the quarter and totaled $107.3 million at September 30, 2000.
At its meeting of October 17, 2000 the Company's board of directors
declared its regular quarterly dividend of 12.5 cents per share. The
dividend will be paid on November 9, 2000 to shareholders of record on
October 31, 2000.
On May 24, 2000, the Company announced that it had entered into a
merger of equals agreement with First Place Financial Corp. (NASDAQ: FPFC)
creating the largest financial institution to be based in the Mahoning
Valley with assets of $1.7 billion. Pending approval by the Office of Thrift
Supervision and shareholders, closing is expected by the end of calendar
year 2000 with integration to be completed shortly afterwards.
When used in this press release, or future press releases or other
public or shareholder communications, in filings by the Company with the
Securities and Exchange Commission, or in oral statements made with the
approval of an authorized executive officer, the words or phrases "will
likely result", "are expected to", "will continue", "is anticipated",
"estimate", "project" or similar expressions are intended to identify
"forward-looking statements" within the meaning of the Private Securities
Litigation Reform Act of 1995. Such statements are subject to certain 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, that could cause actual results to differ materially from
historical earnings and those presently anticipated or projected. The
Company wishes to caution readers not to place undue reliance on any such
forward-looking statements, which speak only as of the date made. The
Company wishes to advise readers that the factors listed above could affect
the Company's financial performance and could cause the Company's actual
results for future periods to differ materially from any opinions or
statements expressed with respect to future periods in any current
statements.
The Company does not undertake, and specifically disclaims any
obligation, to publicly release the result of any revisions which may be
made to any forward-looking statements to reflect events or circumstances
after the date of such statements or to reflect the occurrence of
anticipated or unanticipated events.
FFY FINANCIAL CORP. AND SUBSIDIARIES
(unaudited)
<TABLE>
<CAPTION>
Selected Consolidated Financial Condition Data:
----------------------------------------------- September 30, June 30, %
($ in thousands) 2000 2000 Change
------------- -------- ------
<S> <C> <C> <C>
Total assets $684,037 $674,475 1%
Loans receivable, net 492,510 484,517 2%
Loans available for sale 354 171 107%
Allowance for loan losses 2,788 2,659 5%
Non-performing assets 3,933 3,392 16%
Securities available for sale 158,422 158,136 0%
Deposits 439,366 446,049 -1%
Short-term repurchase agreements(1) 7,907 6,938 14%
Long-term repurchase agreements(1) 51,300 51,300 0%
Short-term borrowed funds 28,002 17,500 60%
Long-term borrowed funds 79,280 79,280 0%
Stockholders' equity 66,746 65,195 2%
<CAPTION>
Three months ended
September 30,
Selected Consolidated Operations Data: ----------------------------
-------------------------------------- %
($ in thousands except per share amounts) 2000 1999 Change
------- ------- ------
<S> <C> <C> <C>
Total interest income $12,927 $12,405 4%
Total interest expense 7,883 6,813 16%
------------------
Net interest income 5,044 5,592 -10%
Provision for loan losses 202 101 100%
------------------
Net interest income after
provision for loan losses 4,842 5,491 -12%
Service charges 325 255 27%
Gain on sale of securities 0 1 NM
Gain on sale of loans 111 60 85%
Other non-interest income 307 150 105%
Total non-interest expense (3,458) (3,335) 4%
------------------
Income before income taxes and
minority interest 2,127 2,622 -19%
Income tax expense 646 781 -17%
Minority interest in loss of consolidated subsidiaries 0 (2) NM
------------------
Net income $ 1,481 $ 1,843 -20%
==================
Basic earnings per share $ 0.24 $ 0.28 -14%
==================
Diluted earnings per share $ 0.23 $ 0.27 -15%
==================
Cash dividends declared per share $ 0.125 $ 0.125 0%
==================
<FN>
<F1> Securities sold under agreements to repurchase.
NM - Not a meaningful measure of performance.
</FN>
</TABLE>
FFY FINANCIAL CORP. AND SUBSIDIARIES
(unaudited)
<TABLE>
<CAPTION>
Three months ended
September 30,
------------------------
Selected Financial Ratios and Other Data: 2000 1999
----------------------------------------- ---------- ----------
<S> <C> <C>
Performance Ratios:
Return on average assets(1) 0.88%(7) 1.10%(7)
Return on average equity(2) 9.03%(7) 10.88%(7)
Interest rate spread information:
Average during period(3) 2.64%(7) 3.07%(7)
End of period(3) 2.59% 3.02%
Net interest margin(3)(4) 3.19%(7) 3.54%(7)
Operating expense to average assets 2.05%(7) 1.98%(7)
Efficiency ratio(5) 59.32% 54.83%
Dividend payout ratio(6) 54.35% 46.30%
Quality Ratios (end of period):
Non-performing assets to total assets 0.57% 0.32%
Allowance for loan losses to non-performing assets 70.89% 126.44%
Allowance for loan losses to gross loans outstanding 0.56% 0.57%
Capital Ratios:
Equity to total assets at end of period 9.76% 10.07%
Average equity to average assets 9.71% 10.06%
Book value per share $10.08 $ 9.58
Tangible book value per share $ 9.94 $ 9.55
Change in book value and tangible book value
per share due to SFAS No. 115 $(0.69) $(0.67)
Ratio of average interest-earning assets to
average interest-bearing liabilities 1.10x 1.10x
<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>
