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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: APRIL 10, 2000
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 April 10, 2000, Oak Hill Financial, Inc., ("Oak Hill") issued a news
release announcing its earnings for the first quarter and three months ended
March 31, 2000. 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
April 10, 2000, announcing the company's earnings
for the first 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: April 12, 2000 By: /s/ H. Tim Bichsel
-------------------------------
H. Tim Bichsel, Secretary
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EXHIBIT INDEX
Exhibit No. Description
99 Press release of Oak Hill Financial, Inc., dated
April 10, 2000, announcing the company's earnings
for the first quarter.
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Exhibit 99
FOR IMMEDIATE RELEASE
Monday, April 10, 2000
Contact: David G. Ratz, Chief Administrative Officer
(740) 286-3283
OAK HILL FINANCIAL REPORTS FIRST QUARTER RESULTS
JACKSON, OHIO -- Oak Hill Financial, Inc. (Nasdaq NMS: OAKF) today reported net
earnings for the three months ended March 31, 2000 of $1,765,000, or $.33 per
diluted share. The first quarter 2000 earnings compare to the $1,815,000, or
$.34 per diluted share, in net earnings that the company recorded for the first
quarter of 1999. All historical financial information has been restated to
reflect Oak Hill Financial's October 1, 1999 merger with Towne Financial Corp.,
which was accounted for as a pooling of interests.
Oak Hill Financial's total assets increased 10.0% over the prior year, ending
the first quarter of 2000 at $612.8 million as compared to $557.0 million at
March 31, 1999. The company's net loans at March 31, 2000 were up 25.5% from
March 31, 1999.
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 healthy
increases. For the three months ended March 31, 2000, net interest income was up
14.2% and non-interest income was up 22.0% as compared to the first quarter of
1999. Those increases were somewhat offset by an 80.3% decrease in gain on sale
of loans.
Kidd explained that the decrease in gain on sale of loans resulted from the
reduced demand for fixed-rate mortgage loans due to higher interest rates.
"Overall, we're happy with the revenue side," said Kidd. "We had strong growth
in all other income categories."
Oak Hill Financial's first quarter net interest margin of 4.29% was an increase
both over the 4.10% recorded at March 31, 1999 and the 4.02% posted for the
fourth quarter of 1999. "Like most banks, we've seen greater pressure on the net
interest margin," said Kidd. "Interest rates have gone up and we've driven our
loan-to-deposit ratio over 105%, both of which have led to higher funding costs.
In light of those factors, we're very pleased to have increased our net interest
margin."
Kidd also provided an update on the recent Towne Financial merger, which added
$118 million in assets and four offices in fast-growing areas of suburban
Cincinnati to the company. "Our focus for 2000 remains on realizing the
potential of the Towne merger. So far, we've made real progress in transforming
Towne from a savings and loan into a commercial bank. We've had growth in
higher-yielding commercial loans, we've improved operating efficiency, and we're
working to leverage the large customer base that Towne brought to us."
Oak Hill Financial is a community bank holding company headquartered in Jackson,
Ohio. Its subsidiaries, Oak Hill Banks, Towne Bank, and Action Finance Company,
operate 22 full-service banking offices, four bank loan production offices, and
four consumer finance offices in 16 counties across southern Ohio.
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<TABLE>
OAK HILL FINANCIAL, INC.
APRIL 10, 2000 PRESS RELEASE
SELECTED CONSOLIDATED FINANCIAL INFORMATION
(in thousands, except per share data),
<CAPTION>
AT OR FOR THE
THREE MONTHS ENDED MARCH 31,
2000 1999
(unaudited)
<S> <C> <C>
SUMMARY OF FINANCIAL CONDITION
Total assets $612,751 $556,969
Interest-bearing deposits
and federal funds sold 2,412 15,325
Investment securities 54,686 94,685
Loans receivable -- net 524,897 418,386
Deposits 497,055 469,342
Federal Home Loan Bank
advances and other borrowings 63,581 35,078
Stockholders' equity 48,984 47,877
SUMMARY OF OPERATIONS
Interest income 12,402 10,818
Interest expense 6,242 5,425
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Net interest income 6,160 5,393
Provision for loan losses 360 310
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Net interest income after
provision for loan losses 5,800 5,083
Gain on sale of loans 61 309
Other non-interest income 560 459
Non-interest expense 3,771 3,150
-------- --------
Earnings before federal income taxes 2,650 2,701
Federal income taxes 885 886
-------- --------
Net earnings $ 1,765 $ 1,815
======== ========
</TABLE>
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<TABLE>
OAK HILL FINANCIAL, INC.
APRIL 10, 2000 PRESS RELEASE
SELECTED CONSOLIDATED FINANCIAL INFORMATION
(in thousands, except per share data),
<CAPTION>
AT OR FOR THE
THREE MONTHS ENDED MARCH 31,
2000 1999
(unaudited)
<S> <C> <C>
PER SHARE INFORMATION
Basic earnings per share (1) $ 0.33 $ 0.34
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Diluted earnings per share (2) $ 0.33 $ 0.34
======= =======
Dividends per share (1) $ 0.10 $ 0.08
======= =======
Book value per share $ 9.18 $ 9.06
======= =======
OTHER STATISTICAL AND OPERATING DATA (3)
Return on average assets 1.19% 1.33%
Return on average equity 14.84% 15.58%
Net interest margin 4.29% 4.10%
Non-interest expense to average assets 2.54% 2.31%
Total allowance for loan losses
to nonperforming loans 159.59% 249.28%
Total allowance for loan losses
to total loans 1.17% 1.10%
Nonperforming loans to total loans 0.73% 0.44%
Nonperforming assets to total assets 0.68% 0.36%
Net charge-offs to average loans 0.07% 0.05%
Equity to assets at period end 8.00% 8.60%
Dividend payout ratio 30.24% 22.83%
</TABLE>
(1) Based on 5,331,888 and 5,250,230 weighted-average shares outstanding for
the three month period ended March 31, 2000 and 1999, respectively.
(2) Based on 5,331,888 and 5,399,973 weighted-average shares outstanding for
the three month period ended March 31, 2000 and 1999, respectively.
(3) Annualized where appropriate.
