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)
October 15, 1998
OHSL FINANCIAL CORP.
(Exact name of Registrant as specified in its Charter)
Delaware 0-20886 31-1362390
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File No.) Identification Number)
5889 Bridgetown Road, Cincinnati, Ohio 45348-3199
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (513) 574-3322
N/A
(Former name or former address, if changed since last report)
Item 5. Other Events
On October 15, 1998, the Registrant issued a press release
announcing earnings for the three and nine month periods ended
September 30, 1998.
Item 7. Financial Statements and Exhibits
(a) Exhibits
99.1 Press release of OHSL Financial Corp., dated October 15,
1998.
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 thereunto duly authorized.
OHSL FINANCIAL CORP.
Date: October 20, 1998 By:/s/ Kenneth L. Hanauer
Kenneth L. Hanauer
President and Chief
Executive Officer
Exhibit 99.1
OHSL Financial Announces Third Quarter Earnings
CINCINNATI--Oct. 15, 1998--OHSL Financial Corp.
(Nasdaq:OHSL), the parent company of Oak Hills Savings and Loan
Company F.A., today announced earnings for the three and nine
month periods ended Sept. 30, 1998.
Net income for the three months ended Sept. 30, 1998 totaled
$528,000, an increase of $27,000 or 5.4 percent over the same
period in 1997. Net interest income for the three months ended
Sept. 30, 1998 totaled $1,857,000, an increase of $70,000 or 3.9
percent over the net interest income for the same period in 1997.
Net income for the nine months ended Sept. 30, 1998 totaled
$1,637,000, an increase of $95,000 or 6.2 percent over the same
period in 1997. Net interest income for the nine months ended
Sept. 30, 1998 totaled $5,596,000, an increase of $172,000 or 3.2
percent over the net interest income for the same period in 1997.
Non-interest income totaled $536,000 for the nine months ended
Sept. 30, 1998 compared to $280,000 for the same period in 1997,
an increase of $256,000. Sales of mortgage loans in the secondary
market accounted for approximately 73 percent of the increase in
non-interest income.
Earnings per share for the three months ended Sept. 30, 1998
totaled 21 cents, an increase of 1 cent or 5.0 percent over the
earnings per share of 20 cents reported for the same period in
1997.
Earnings per share for the nine months ended Sept. 30, 1998
totaled 66 cents, an increase of 4 cents or 6.5 percent over the
earnings per share of 62 cents reported for the nine months ended
Sept. 30, 1997.
Kenneth L. Hanauer, president and chief executive officer of
OHSL Financial commented, "The low interest rate environment which
has existed throughout 1998, combined with a very flat yield
curve, has presented our industry with some serious challenges.
Customer demand for fixed-rate mortgage products requires us to
offer our loans at rates which are lower than we have seen in
twenty years. In order to prudently manage our interest rate
risk, it is essential that we sell these loans in the secondary
market, so that the company's net interest income is not penalized
in the event of an upturn in interest rates. In the current
market, however, this presents us with few reinvestment
opportunities, resulting in lower overall yields on our interest
- -earning assets. In addition, in order to meet local and regional
competition, it has been difficult to lower deposit rates in order
to compensate for the lower yield on assets discussed previously.
Despite these strong challenges, however, our net interest income
and our net income remain healthy. We continue to produce income
numbers which exceed 1997, and 1997 was a record year for OHSL.
In addition, our asset size at Sept. 30, 1998 is at an all-time
high and we are poised to add a new location in Sayler Park within
the next 30 days. We continue to believe that a strong market
exists for the products and services of a community-based
financial institution, and we believe that we can profitably meet
the needs of this market as well as the requirements of our
shareholders."
OHSL's subsidiary, Oak Hills Savings and Loan Company F.A.,
offers traditional community bank type services to its individual
and business customers through its five offices located in western
Hamilton County, Ohio, as well as mutual fund and annuity products
through its affiliation with Cox Financial.
OHSL Financial Corp.
(unaudited)
Three months ended Sept. 30:
CONSOLIDATED RESULTS OF OPERATIONS 1998 1997
(000) (000)
Interest income 4676 4506
Interest expense 2819 2719
Net interest income 1857 1787
Provision for loan losses 9 10
Net interest income after provision 1848 1777
Noninterest income 177 95
Noninterest expense 1185 1117
Net income before tax provision 840 755
Provision for income taxes 312 254
Net income 528 501
EARNINGS PER SHARE $ 0.21 $ 0.20
DIVIDENDS PER SHARE $0.125 $ 0.11
BOOK VALUE PER SHARE (END OF PERIOD) $11.12 $10.71
Nine months ended Sept. 30:
CONSOLIDATED RESULTS OF OPERATIONS 1998 1997
(000) (000)
Interest income 13997 13165
Interest expense 8401 7741
Net interest income 5596 5424
Provision for loan losses 26 32
Net interest income after provision 5570 5392
Noninterest income 536 280
Noninterest expense 3493 3331
Net income before tax provision 2613 2341
Provision for income taxes 976 799
Net income 1637 1542
EARNINGS PER SHARE $ 0.66 $ 0.62
DIVIDENDS PER SHARE $ 0.36 $ 0.33
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
Sept. 30 Dec. 31
1998 1997
(000) (000)
Cash and cash equivalents 10796 16224
Investments - held to maturity 56412 33854
Investments - available for sale 9800 10774
Loans receivable 168389 171768
Other assets 6999 6285
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Total assets 252396 238905
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Deposits 186532 184690
Advances from Federal Home Loan Bank 36708 26570
Other liabilities 1984 1613
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Total liabilities 225224 212873
Stockholders' equity 27172 26032
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Total liabilities and equity 252396 238905
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CONTACT: OHSL Financial Corp., Cincinnati
Patrick J. Condren, 513/574-3322