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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): July 22, 1996
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WFS BANCORP, INC.
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(Exact name of registrant as specified in its charter)
Delaware 0-23824 36-3943114
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(State or other (Commission (IRS Employer
jurisdiction of File Number) Identification No.)
incorporation)
340 South Broadway, Wichita, Kansas 67202
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(Address, including zip code, of principal executive office)
(316) 383-8404
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(Registrant's telephone number, including area code)
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ITEM 5. OTHER EVENTS.
On July 22, 1996, WFS Bancorp, Inc., a corporation organized and existing
under the laws of the State of Delaware ("WFS"), released its third quarter
operating results for the nine month period ended June 30, 1996. WFS is the
holding company of its wholly owned subsidiary, Wichita Federal Savings and
Loan Association, which is the primary source of WFS' consolidated net income.
For additional information, please refer to the press release attached
hereto as Exhibit 99.1.
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SIGNATURE
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 hereunto duly authorized.
WFS BANCORP, INC.
(Registrant)
By: /s/ Burton G. Dunlap
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Burton G. Dunlap
President and Chief Executive
Officer
Date: July 30, 1996
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INDEX TO EXHIBITS
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Sequential
Exhibit Page No.
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99.1 Text of press release, dated July 22, 1996, issued by
WFS Bancorp, Inc.........................................
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EXHIBIT 99.1
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PRESS RELEASE FOR IMMEDIATE RELEASE
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Contact: Burton G. Dunlap
Telephone: (316) 383-8404
WFS BANCORP, INC.
THIRD QUARTER OPERATING RESULTS
Wichita, Kansas (July 22, 1996) Burton G. Dunlap, CEO of WFS Bancorp, Inc.
("Company"), announced today the Third Quarter Consolidated Operating results
of 1996. The Company is the holding company of its wholly owned subsidiary,
Wichita Federal Savings and Loan Association. The savings and loan association
is the primary source of consolidated net income, providing financial services
through its four offices in the Wichita, Kansas market.
Net income was $671,000 and $1.5 million for the quarter and nine months
ended June 30, 1996. This compares to net income of $50,000 and $944,000 for
the same periods last year, respectively. Consolidated earnings per share
(EPS) for the quarter and nine-months ended June 30, 1996 were $0.43 and $0.96,
respectively, as compared to $0.03 and $0.63 for the same periods in 1995.
The $621,000 third quarter increase in earnings resulted primarily from a
$568,000 increase in noninterest income and a $162,000 decrease in noninterest
expense, when compared with the same quarter in 1995. In the third quarter
1996, the Company recognized a $118,000 recovery on a previously charged-off
commercial property, as compared to a $552,000 loss recognized in the same 1995
quarter that resulted from the sale and permanent write-down of securities.
The 10% increase in Net Interest Income before loan loss provision resulted as
net interest earning assets increased $1.9 million between the quarters ended
June 30, 1995 and 1996 and the average interest rate spread increased 0.50%.
Of this period increase in interest rate spread, 0.12% of the increase resulted
from an adjustment to purchase loan discount. A 14% decrease in compensation
expense resulted largely from the cost of the management recognition and
retention plan (MRRP).
The 59% increase in earnings for the nine months 1996, when compared to
1995, is largely the result of a 9% increase in net interest income before loan
loss provision and a 9% decrease in noninterest expense. The increase in net
interest income primarily reflects $1.2 million and 0.16% increases in net
earning assets and interest rate spread, respectively. A previously recognized
$377,000 loss on sale of FHA Title I Participation Certificates in 1996 and a
$265,000 recovery in fiscal 1995 more than offset the third quarter 1996
increase in noninterest income. The decrease in noninterest expense for the
nine months in fiscal 1996, as compared to the same period in 1995, included
$185,000 and $120,000 decreases in compensation and advertising expenses,
respectively, and a $121,000 improvement in earnings from real estate owned
activities.
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At June 30, 1996, the Company reported assets of $267.8 million, deposits
of $193.1 million and equity capital of $34.4 million. Since September 30,
1995, loans receivable have decreased only $2.1 million after portfolio loan
sales of $13.0 million. The Company also sold $9.6 million FHA Title I
Participation Certificates in 1996. The Company has securities totaling $35.7
million available for sale at June 30, 1996, with a reported fair value less
than the amortized cost by $386,000, net of related income tax effect.
The Company's common stock is traded on the NASDAQ National Market System
under the symbol "WBCI". As of June 30, 1996, the Company had 1,564,387 common
shares outstanding. Selected consolidated financial statements follow.
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WFS BANCORP, INC.
Consolidated Balance Sheets
June 30, 1996 and September 30, 1995
(in thousands)
<TABLE>
<CAPTION>
<S> <C> <C>
June 30, 1996 September 30,
Assets (Unaudited) 1995
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Cash and cash equivalents $ 16,137 $ 7,472
Investment securities 3,886 4,686
Investment securities available for sale 1,494 8,437
Stock in the FHLB, at cost 3,006 2,866
Mortgage-backed and related securities 30,020 79,622
Mortgage-backed and related securities available for sale 34,223 10,057
Loans receivable, net 173,665 175,722
Mortgage loans available for sale, net 406 274
Real estate owned and in judgment, net 219 566
Premises and equipment, net 2,169 2,304
Accrued interest receivable 1,704 2,015
Income tax receivable -- 83
Other assets 900 865
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Total Assets $267,829 $294,969
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Liabilities & Stockholders' Equity
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Deposits 193,140 199,656
FHLB advances & other borrowings 37,478 57,323
Advances from borrowers for taxes and insurance 1,417 2,845
Deferred income taxes 81 229
Income tax payable 101 --
Other liabilities 1,207 1,694
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Total Liabilities 233,424 261,747
Stockholders' Equity
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Preferred Stock, par value $0.01 per share
Authorized: 1,000,000 shares
Issued: 0 shares -- --
Common Stock, par value 0.01 per share
Authorized: 5,000,000 shares
Issued: 1,661,178 shares as of June 30, 1996 17 17
1,657,871 shares as of September 30, 1995
Additional paid in capital 16,487 16,258
Retained earnings - substantially restricted 19,533 18,505
Unrealized loss on securities available for sale (386) (63)
Unearned ESOP shares, 97,791 shares March 31, 1996;
107,057 shares September 30, 1995 (967) (1,071)
Unearned Compensation (279) (424)
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Total Stockholders' Equity 34,405 33,222
Total Liabilities & Stockholders' Equity $267,829 $294,969
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</TABLE>
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WFS BANCORP, INC.
Consolidated Balance Sheets
June 30, 1996 and September 30, 1995
(In thousands)
(Unaudited)
<TABLE>
<CAPTION>
Nine-Month Period Ended Three-Month Period Ended
June 30, June 30,
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1996 1995 1996 1995
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<S> <C> <C> <C> <C>
Interest income:
Loans receivable $11,079 $ 8,070 $3,655 $3,078
Investment securities 685 825 244 389
Dividends on stock in FHLB 140 98 50 37
Mortgage-backed and related securities 4,206 5,360 1,222 1,837
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Total Interest Income and dividends 16,110 14,353 5,171 5,341
Interest expense:
Deposits 7,681 7,091 2,457 2,717
Other borrowings 2,036 1,887 574 698
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Total interest expense 9,717 8,978 3,031 3,415
Net interest income 6,393 5,875 2,120 1,926
Provision for loan losses 115 189 25 126
(reduction of allowance) charged (credited) to expense ------- ------- ------ ------
Net interest income after provision for loan losses
(reduction of allowance) 6,278 5,686 2,095 1,800
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Other income:
Fees and service charges 410 361 138 126
Gain (loss) on sale of investment securities (433) (38) 0 (38)
Gain (loss) on sale of mortgage-backed related
securities -- (514) 0 (514)
Gain (loss) on sale of loans 35 25 12 27
Other Income 237 491 147 128
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Total other income 249 325 297 (271)
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Other expenses:
Compensation and employee benefits 2,365 2,550 738 855
Occupancy 344 359 104 122
Advertising 77 197 13 44
Federal insurance premiums 349 326 116 109
Loss (gain) on real estate owned activities (net) (92) 29 4 (33)
Other expenses 1,032 1,009 309 349
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Total other expenses 4,075 4,470 1,284 1,446
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Income before income taxes 2,452 1,541 1,108 83
Income tax expense 955 597 437 33
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Net income $ 1,497 $ 944 $ 671 $ 50
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Net income per share $ 0.96 $ 0.63 $ 0.43 $ 0.03
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</TABLE>
