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): May 14, 2003
FIRST FEDERAL FINANCIAL CORPORATION OF KENTUCKY
(Exact Name of Registrant as specified in Charter)
Kentucky 1-18832 61-1168311
(State or other (Commission (IRS Employer
jurisdiction of File Number) Identification No.)
incorporation)
2323 Ring Road, Elizabethtown, Kentucky 42701
(Address of principal executive offices) (Zip code)
Registrant's telephone number,
including area code: (270) 765-2131
N/A
(Former name or former address, if changed since last report.)
INFORMATION TO BE INCLUDED IN THE REPORT
Items 1, 2, 3, 4, 5, 6, 7, 8, and 10, are not applicable and are omitted from this Report.
Item 9 and 12. Regulation FD Disclosure
First Federal Financial
Corporation of Kentucky
2003 Annual Meeting of Shareholders
May 14, 2003
Safe Harbor Statement
This presentation contains forward-looking statements, including statements about management's beliefs and expectations regarding
First Federal Financial Corporation of Kentucky's future financial outlook and the business environment, that are intended to
assist in assessing FFKY's future financial performance. These statements are based on current expectations, estimates and
assumptions, all of which are subject to risks and uncertainties that may cause actual results to differ materially from the
forward-looking statements. Factors that may adversely affect FFKY's future performance are discussed in it's Form 10-K and other
reports filed with the Securities and Exchange Commission.
First Federal Financial Corporation of Kentucky
Management Overview
>> Keith Johnson President & CEO
President since 1997
Joined bank in 1993 as Chief Financial Officer
Formerly a partner in CPA firm
>> Charles Chaney COO / CFO
Joined bank in 1972
Involved in various operational areas
>> Larry Hawkins Chief Lending Officer
Joined bank in 2000
Formerly commercial lender with PNC Bank; 3 years of service.
Formerly held several loan positions with local credit union, including head of collection department.
>> Anne Moran Chief Retail Officer
Joined bank in 1999
Formerly Louisville, KY Market Manager for over 50 Bank One branches; 25 years of service.
First Federal Financial Corporation of Kentucky
Company Overview
>> Founded in 1923
>> Subsidiary - First Federal Savings Bank
o Bank Subsidiaries
- First Heartland Mortgage Company (100%)
- First Service Corporation (100%) / Raymond James, authorized Broker
- First Federal Office Park, LLC (100%)
- First Heartland Title, LLC (48%)
>> IPO - May, 1987
>> "FFKY"
>> 1995 - Acquired $50 million savings bank
>> 1998 - Acquired $72 million in deposits from Bank One (three banking centers)
>> 2003 - Converted to a state chartered Commercial Bank
First Federal Financial Corporation of Kentucky
[Graphic Omitted]
>> 13 Banking Centers
>> Number 1 Market Share in 5 County Central Kentucky region with 21%
*FFKY STOCK PERFORMANCE
[Graphic Omitted]
6/00 9/00 12/00 3/01 6/01 9/01 12/01 3/02 6/02 9/02 12/02 3/03 4/03 5/12/03
- ---- ---- ----- ---- ---- ---- ----- ---- ---- ---- ----- ---- ---- -------
$15.45 $14.54 $13.64 $13.64 $15.00 $15.00 $15.24 $18.64 $21.08 $20.32 $22.25 $28.34 $32.22 $33.40
*Adjusted to reflect the impact of the 10% stock dividend declared April 16, 2003.
First Federal Financial Corporation of Kentucky
*Diluted Earnings Per Share
[Graphic Omitted]
9/00 12/00 3/01 6/01 9/01 12/01 3/02 6/02 9/02 12/02 3/03
---- ----- ---- ---- ---- ----- ---- ---- ---- ----- ----
$0.34 $0.32 $0.34 $0.37 $0.43 $0.48 $0.46 $0.43 $0.54 $0.55 $0.54
*Adjusted to reflect the impact of the 10% stock dividend declared April 16, 2003.
First Federal Financial Corporation of Kentucky
Return on Average Equity
[Graphic Omitted]
12/98 12/99 12/00 12/01 12/02 *3/03
----- ----- ----- ----- ----- -----
11.28% 10.81% 10.13% 12.31% 13.75% 14.56%
*Annualized based on results for the quarter ended 3/31/03
First Federal Financial Corporation of Kentucky
Keys to Successful Earnings Growth
1. Improvement in Net Interest Margin
First Federal Financial Corporation of Kentucky
Net Interest Margin
[Graphic Omitted]
9/00 12/00 3/01 6/01 9/01 12/01 3/02 6/02 9/02 12/02 3/03
---- ----- ---- ---- ---- ----- ---- ---- ---- ----- ----
3.12% 2.96% 3.32% 3.45% 3.71% 3.96% 3.96% 3.68% 3.79% 3.85% 3.64%
First Federal Financial Corporation of Kentucky
Keys to Successful Earnings Growth
1. Improvement in Net Interest Margin
2. Improvement in Non-Interest Income
First Federal Financial Corporation of Kentucky
Non-Interest Income
in Millions
[Graphic Omitted]
12/98 12/99 12/00 12/01 12/02 *3/03
----- ----- ----- ----- ----- -----
$3.4 $4.1 $4.7 $5.0 $5.9 $6.9
*Annualized based on results for the quarter ended 3/31/03
First Federal Financial Corporation of Kentucky
Keys to Successful Earnings Growth
1. Improvement in Net Interest Margin
2. Improvement in Non-Interest Income
3. Improvement in Efficiency Ratio
First Federal Financial Corporation of Kentucky
Efficiency Ratio
[Graphic Omitted]
12/98 12/99 12/00 12/01 12/02 3/03
----- ----- ----- ----- ----- ----
50% 57% 60% 56% 52% 54%
First Federal Financial Corporation of Kentucky
Transformation to a "Commercial Bank"
>> 1998 - Acquisition of Three Bank One Branches
- Computer hardware upgrade
- New customer product / service line
>> 1999 - Hiring of Chief Retail Officer
>> 2000 - Hiring of Chief Lending Officer
>> 2003 - Conversion to state chartered non-member bank (FDIC regulated)
First Federal Financial Corporation of Kentucky
Transformation to a "Commercial Bank"
o New Commercial Products o New Retail Products
- - Sweep Account - Check Imaging
- - Checking Analysis account - Simply Free Checking
- - Cash Management - Powerdraft (overdraft privilege program)
- - Internet Banking - Internet Banking
- - Commercial Loan product expansion
First Federal Financial Corporation of Kentucky
Loan Breakdown by % of Total
[Graphic Omitted]
12/98 12/99 12/00 12/01 12/02 3/03
----- ----- ----- ----- ----- ----
Residential 75% 72% 64% 60% 53% 51%
Consumer (1) 12 14 17 16 16 16
Commercial(2) 13 14 19 24 31 33
(1) Consumer loans include Second Mortgage Loans & Home Equity Lines of Credit.
(2) Commercial loans include Commercial Real Estate & Commercial Loans.
First Federal Financial Corporation of Kentucky
Residential Mortgage Loans (in Millions)
[Graphic Omitted]
12/98 12/99 12/00 12/01 12/02 3/03
----- ----- ----- ----- ----- ----
$289 $310 $329 $316 $283 $268
First Federal Financial Corporation of Kentucky
*Commercial Loans (in Millions)
[Graphic Omitted]
12/98 12/99 12/00 12/01 12/02 3/03
----- ----- ----- ----- ----- ----
$51 $60 $98 $124 $164 $174
*Commercial loans include Commercial and Commercial Real Estate Loans
First Federal Financial Corporation of Kentucky
*Consumer Loans (in Millions)
[Graphic Omitted]
12/98 12/99 12/00 12/01 12/02 3/03
----- ----- ----- ----- ----- ----
$46 $63 $86 $83 $82 $82
*Consumer loans include Second Mortgage Loans and Home Equity Lines of Credit
First Federal Financial Corporation of Kentucky
Total Loans (in Millions)
[Graphic Omitted]
12/98 12/99 12/00 12/01 12/02 3/03
----- ----- ----- ----- ----- ----
$386 $433 $513 $523 $529 $524
First Federal Savings Bank
Net Charge Offs to Total Loans
As of December 31,
[Graphic Omitted]
12/31/00 12/31/01 12/31/02
-------- -------- --------
National Banks 0.31% 0.43% 0.48%
KY Banks 0.08 0.30 0.29
All Institutions 0.51 0.68 0.95
FFSB 0.09 0.12 0.14
First Federal Savings Bank
*Non-Current Loans to Total Loans
As of December 31,
[Graphic Omitted]
12/31/00 12/31/01 12/31/02
-------- -------- --------
National Banks 0.70% 0.87% 0.95%
KY Banks 0.40 0.49 1.02
All Institutions 0.93 1.17 1.37
FFSB 0.27 0.34 0.24
*Non-current loans include non-accrual or past due 90 days still on accrual.
First Federal Savings Bank
ALLL to Total Loans
As of December 31,
[Graphic Omitted]
12/31/00 12/31/01 12/31/02
-------- -------- --------
National Banks 1.45% 1.52% 1.54%
KY Banks 1.35 1.37 1.49
All Institutions 1.53 1.55 1.71
FFSB 0.49 0.62 0.86
First Federal Savings Bank
ALLL to *Non-Current Loans
As of December 31,
[Graphic Omitted]
12/31/00 12/31/01 12/31/02
-------- -------- --------
National Banks 207% 176% 163%
KY Banks 334 282 146
All Institutions 172 133 125
FFSB 185 185 363
*Non-current loans include non-accrual or past due 90 days still on accrual.
First Federal Financial Corporation of Kentucky
Recent Developments
>> 10% Stock Dividend payable
- May 14, 2003
>> Groundbreaking for Louisville
Banking Centers
1. May 12, 2003 - Louisville (Southern Jefferson County)
2. May 28, 2003 - Louisville (Eastern Jefferson County)
>> Currently qualifying for Russell 2000 Index.
First Federal Financial Corporation of Kentucky
Why own FFKY?
>> Strong earnings growth and potential
>> Building a strong franchise
> Conversion to a commercial bank charter
> Expanding to Louisville in 2003
> Restructuring the balance sheet
>> Cash Dividends
> 2% Annual Cash Dividend
>> Experienced Management Team
>> Good Credit Quality
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.
FIRST FEDERAL FINANCIAL CORPORATION
OF KENTUCKY
Date: May 19, 2003 By /s/ B. Keith Johnson
------------------------------------
B. Keith Johnson
President and Chief Executive Officer
