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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: JULY 7, 1999
OAK HILL FINANCIAL, INC.
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
Ohio 0-26876 31-1010517
---- ------- ----------
(STATE OR OTHER (COMMISSION FILE NO.) (IRS EMPLOYER
JURISDICTION OF IDENTIFICATION
INCORPORATION OR NUMBER)
ORGANIZATION)
14621 State Route 93
Jackson, Ohio 44640
(740) 286-3283
(ADDRESS, INCLUDING ZIP CODE, AND TELEPHONE NUMBER
INCLUDING AREA CODE OF REGISTRANT'S
PRINCIPAL EXECUTIVE OFFICES)
Not Applicable
(FORMER NAME OR FORMER ADDRESS, IF CHANGED SINCE LAST REPORT)
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ITEM 5. OTHER EVENTS.
On July 7, 1999, Oak Hill Financial, Inc., ("Oak Hill") issued a news
release announcing its earnings for the second quarter and three months ended
June 30, 1999. The information contained in the news release, which is attached
as Exhibit 99 to this Form 8-K, is incorporated herein by this reference.
The information contained or incorporated by reference in this Current
Report on Form 8-K may contain forward-looking statements, including certain
plans, expectations, goals, and projections, which are subject to numerous
assumptions, risks, and uncertainties. Actual results could differ materially
from those contained or implied by such statements for a variety of factors,
including: changes in economic conditions; movements in interest rates;
competitive pressures on product pricing and services; success and timing of
business strategies; the nature and extent of legislative and regulatory actions
and reforms; and extended disruption of vital infrastructure.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
(c) Exhibits.
Exhibit No. Description
99 Press release of Oak Hill Financial, Inc.,
dated July 7, announcing the company's earnings
for the second quarter.
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 hereunto duly authorized.
OAK HILL FINANCIAL, INC.
Date: July 8, 1999 By: /s/ H. TIM BICHSEL
------------------------
H. Tim Bichsel, Secretary
EXHIBIT INDEX
Exhibit No. Description
99 Press release of Oak Hill Financial, Inc., dated
July 7, 1999, announcing the company's earnings
for the second quarter.
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Exhibit 99
FOR IMMEDIATE RELEASE
Wednesday, July 7, 1999
Contact: David G. Ratz, Vice President
(740) 286-3283
OAK HILL FINANCIAL REPORTS SECOND QUARTER RESULTS
JACKSON, OHIO -- Oak Hill Financial, Inc. (Nasdaq NMS: OAKF) today reported net
earnings for the three months ended June 30, 1999 of $1,580,000, or $.36 per
diluted share. The second quarter earnings represented an increase of 1.9% over
the $1,550,000, or $.34 per diluted share, in net earnings that the company
recorded for the second quarter of 1998.
Oak Hill Financial's total assets increased 13.7% over the prior year, ending
the second quarter of 1999 at $440.8 million as compared to $387.6 million at
June 30, 1998. The company's net loans and deposits at June 30, 1999 were up
17.5% and 9.1%, respectively, from their levels at June 30, 1998.
Reviewing the company's performance, Oak Hill Financial President and CEO John
D. Kidd noted that both net interest income and non-interest income (excluding
gain on sale of loans) posted strong increases. For the three months ended June
30, 1999, net interest income was up 15.1% and non-interest income was up 18.1%
as compared to the prior year. Offsetting those increases were a 69.2% decrease
in gain on sale of loans and a 28.5% increase in loan loss provision over the
same period.
Kidd explained that the decrease in gain on sale of loans resulted from a
combination of the reduced demand for mortgage refinancing coupled with the
company's increased focus on making portfolio loans. "We're not originating as
many loans for the secondary market, but we had tremendous growth in our loan
portfolio," he stated. "That's also the reason the provision for loan losses
increased. Our loan quality remains very good, but we have take the provision
expense as we make the loans. Since most of our loan growth came in the last
month of the second quarter, we have to carry that expense before we've earned
any significant interest income on the new loans. Because of the timing, we
should really see the benefit of the second quarter loan growth in the third
quarter."
Oak Hill Financial is a bank holding company headquartered in Jackson, Ohio. Its
subsidiary, Oak Hill Banks, operates 17 full-service banking offices in nine
counties across southern Ohio. The company also operates Action Finance Company,
which has two offices in the same region.
On March 11, 1999, Oak Hill Financial announced the signing of a definitive
agreement to acquire Towne Financial Corp. of Blue Ash, Ohio. Subject to
regulatory and shareholder approval, that transaction is expected to be
completed in October.
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OAK HILL FINANCIAL, INC.
JULY 7, 1999 PRESS RELEASE
SELECTED CONSOLIDATED FINANCIAL INFORMATION
(in thousands, except per share data),
<TABLE>
<CAPTION>
FOR THE AT OR FOR THE
THREE MONTHS ENDED JUNE 30, SIX MONTHS ENDED JUNE 30,
1999 1998 1999 1998
(unaudited) (unaudited)
<S> <C> <C> <C> <C>
SUMMARY OF FINANCIAL CONDITION
Total assets $ 440,789 $ 387,581
Interest bearing deposits
and federal funds sold 171 3,281
Investment securities 51,616 53,102
Loans receivable -- net 366,156 311,672
Deposits 364,215 333,891
Federal Home Loan Bank
advances and other borrowings 35,903 16,064
Stockholders' equity 38,698 35,630
SUMMARY OF OPERATIONS
Interest income 8,756 7,978 17,504 15,612
Interest expense 3,943 3,796 8,001 7,450
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Net interest income 4,813 4,182 9,503 8,162
Provision for loan losses 401 312 704 589
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Net interest income after
provision for loan losses 4,412 3,870 8,799 7,573
Gain on sale of loans 77 250 236 394
Other non-interest income 502 425 929 797
Non-interest expense 2,624 2,244 5,222 4,542
------- ------- ------- -------
Earnings before federal income taxes 2,367 2,301 4,742 4,222
Federal income taxes 787 751 1,590 1,366
------- ------- ------- -------
Net earnings $ 1,580 $ 1,550 $ 3,152 $ 2,856
======= ======= ======= =======
</TABLE>
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OAK HILL FINANCIAL, INC.
JULY 7, 1999 PRESS RELEASE
SELECTED CONSOLIDATED FINANCIAL INFORMATION
(in thousands, except per share data),
<TABLE>
<CAPTION>
FOR THE AT OR FOR THE
THREE MONTHS ENDED JUNE 30, SIX MONTHS ENDED JUNE 30,
1999 1998 1999 1998
(unaudited) (unaudited)
<S> <C> <C> <C> <C>
PER SHARE INFORMATION (1)
Basic earnings per share (2) $ 0.36 $ 0.35 $ 0.72 $ 0.65
====== ====== ====== ======
Diluted earnings per share (3) $ 0.36 $ 0.34 $ 0.71 $ 0.64
====== ====== ====== ======
Dividends per share (2) $ 0.09 $ 0.07 $ 0.18 $ 0.13
====== ====== ====== ======
Book value per share $ 8.85 $ 8.09
====== ======
OTHER STATISTICAL AND OPERATING DATA (4)
Return on average assets 1.47% 1.63% 1.47% 1.54%
Return on average equity 16.38% 17.74% 16.58% 16.68%
Net interest margin 4.62% 4.55% 4.59% 4.56%
Non-interest expense to average assets 2.43% 2.37% 2.44% 2.46%
Total allowance for loan losses
to nonperforming loans 358.10% 313.79%
Total allowance for loan losses
to total loans 1.24% 1.29%
Nonperforming loans to total loans 0.35% 0.41%
Nonperforming assets to total assets 0.29% 0.34%
Net charge-offs to average loans 0.04% 0.04% 0.11% 0.08%
Equity to assets at period end 8.78% 9.19%
Dividend payout ratio 24.87% 19.88% 24.94% 20.03%
</TABLE>
(1) Per share information gives retroactive effect to the 25% stock
dividend effected June 1, 1998.
(2) Based on 4,370,666, 4,369,224, 4,401,736, and 4,400,050
weighted-average shares outstanding for the three and six month periods
ended June 30, 1999, and June 30, 1998, respectively.
(3) Based on 4,442,332, 4,443,620, 4,513,046, and 4,501,001
weighted-average shares outstanding for the three and six month periods
ended June 30, 1999, and June 30, 1998, respectively.
(4) Annualized where appropriate.
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