UNITED STATES
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)
April 20, 1999
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FFY FINANCIAL CORP.
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(Exact name of registrant as specified in its charter)
Delaware 0-21638 34-1735753
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(State or other (Commission File Number) (IRS Employer
jurisdiction of Identification
incorporation) Number)
724 Boardman-Poland Road, Youngstown, Ohio 44512
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: 330-726-3396
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N/A
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(Former name or former address, if changed since last report)
Item 5. Other Events
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On April 20, 1999, the Registrant issued the attached press release.
Item 7. Financial Statements and Exhibits
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(a) Exhibits
1. Press release, dated April 20, 1999.
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.
FFY FINANCIAL CORP.
Date: April 21, 1999 By: /s/ Jeffrey L. Francis
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Jeffrey L. Francis,
President and CEO
For Immediate Release For Further Information:
Tuesday, April 20, 1999 Jeff Francis, President and CEO
Terri Liutkus, Treasurer and CFO
330/726-3396 - phone
330/758-1356 - fax
FFY Financial Corp. Reports 3rd Quarter
Net Income and Regular Dividend
Youngstown, Ohio, April 20, 1999 - FFY Financial Corp. (NASDAQ: FFYF)
announced net income for its third fiscal quarter ended March 31, 1999 of
$2.1 million, or $.30 per diluted share. Net income for the current quarter
compared to net income for the same prior year quarter of $2.0 million, or
$.25 per diluted share. Current quarter results represent a 9% increase in
net income and a 20% increase in earnings per diluted share over the quarter
ended March 31, 1998. This quarter's performance of $.30 earnings per
diluted share and 10.86% return on equity are the highest ever reported by
the Company.
Assets totaled $658.3 million at March 31, 1999, an increase of $6.6
million, or 1% from $651.7 million at June 30, 1998. The increase in assets
was primarily the result of growth in the securities portfolio, which
increased $30.9 million during the nine month period and totaled $171.7
million at March 31, 1999. Net loans receivable declined $24.0 million, or
5% during the nine months ended March 31, 1999 and totaled $458.5 million,
including $97,000 in loans available for sale at March 31, 1999. The
decline in loans was principally due to loans sold in the secondary market,
as opposed to retained for portfolio in the current low interest rate
environment, and repayments on short-term loans made to customers in June
1998 to fund their stock subscriptions in an initial public offering by a
local financial institution that converted from a mutual to stock form of
ownership.
Deposits totaled $456.6 million at March 31, 1999, an increase of
$12.6 million, or 3% from $444.0 million at June 30, 1998. Long-term
borrowings, which increased $35.0 million during the nine-month period ended
March 31, 1999, were used to fund growth in the securities portfolio and to
repay short-term repurchase agreements and short-term borrowings.
At its meeting on April 20, 1999 the Company's board of directors
declared its regular quarterly dividend of 11.25 cents per share to be paid
on May 13, 1999 to shareholders of record on April 30, 1999.
On February 16, 1999 the Company announced its intention to repurchase
10%, or 758,936 of its then outstanding shares of common stock in open
market transactions over a twelve-month period which began on February 23,
1999. To date 354,336 shares have been repurchased at an average price of
$18.13 per share, leaving 404,600 shares remaining to be purchased. Since
completing its conversion to a publicly owned stock company on June 28,
1993, the Company has repurchased 6.7 million shares at an average price of
$11.72 per share, returning $78.8 million to shareholders.
Except for the historical information contained herein, the matters
discussed in this press release may be deemed to be forward-looking
statements that involve risks and uncertainties, including changes in
economic conditions in the Company's market area, changes in policies by
regulatory agencies, fluctuations in interest rates, demand for loans in the
Company's market area and competition, and other risks detailed from time to
time in the Company's SEC reports, including the report on Form 10-K for
the year ended June 30, 1998 and Forms 10-Q for the quarters ended September
30, 1998 and December 31, 1998. Actual strategies and results in future
periods may differ materially from those currently expected. These forward-
looking statements represent the Company's judgment as of the date of this
release. The Company disclaims, however, any intent or obligation to update
these forward-looking statements.
FFY FINANCIAL CORP. AND SUBSIDIARIES
(unaudited)
March 31, June 30, %
Selected Consolidated Financial Condition Data: 1999 1998 Change
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($ in thousands)
Total assets $658,262 $651,746 1%
Loans receivable, net 458,397 482,463 -5%
Loans available for sale 97 0 NM
Allowance for loan losses 2,751 2,740 0%
Non-performing assets 3,638 3,324 9%
Securities available for sale 171,668 140,793 22%
Deposits 456,551 444,017 3%
Short-term repurchase agreements (1) 7,349 13,088 -44%
Long-term repurchase agreements (1) 51,300 51,300 0%
Short-term borrowed funds 22,100 33,985 -35%
Long-term borrowed funds 35,000 0 NM
Stockholders' equity 75,447 84,216 -10%
Three months ended Nine months ended
March 31, March 31,
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% %
Selected Consolidated Operations Data: 1999 1998 Change 1999 1998 Change
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($ in thousands except per share amounts)
Total interest income $12,241 $12,074 1% $36,786 $36,037 2%
Total interest expense 6,522 6,317 3% 19,975 19,143 4%
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Net interest income 5,719 5,757 -1% 16,811 16,894 0%
Provision for loan losses 131 115 14% 381 442 -14%
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Net interest income after
provision for loan losses 5,588 5,642 -1% 16,430 16,452 0%
Service charges 217 162 34% 633 515 23%
Gain on sale of securities 54 54 0% 113 153 -26%
Gain on sale of loans 202 31 NM 591 33 NM
Other non-interest income 113 263 -57% 550 516 7%
Total non-interest expense (3,048) (3,056) 0% (9,313) (8,737) 7%
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Income before income taxes
and minority interest 3,126 3,096 1% 9,004 8,932 1%
Income tax expense:
Federal 1,082 1,128 -4% 3,001 3,121 -4%
State 4 0 NM 45 0 NM
Minority interest in loss of
consolidated subsidiaries (106) 0 NM (106) 0 NM
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Net income $ 2,146 $ 1,968 9% $ 6,064 $ 5,811 4%
==================== ====================
Basic earnings per share $ 0.31 $ 0.26 (2) 19% $ 0.84 $ 0.77 (2) 9%
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Diluted earnings per share $ 0.30 $ 0.25 (2) 20% $ 0.81 $ 0.74 (2) 9%
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Cash dividends declared per share $ 0.1125 $ 0.10 (2) 13% $ 0.3375 $ 0.30 (2) 13%
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<FN>
<F1> - Securities sold under agreements to repurchase.
<F2> - Earnings per share figures have been restated in accordance with
Statement of Financial Accounting Standards No. 128 - Earnings per
Share, to reflect a 100% stock dividend declared on January 19,
1999.
<FNM> - Not a meaningful measure of performance.
Note: Certain amounts in the 1998 consolidated operations data have been
reclassified to conform with the 1999 presentation.
</FN>
FFY FINANCIAL CORP. AND SUBSIDIARIES
(unaudited)
Three months ended Nine months ended
March 31, March 31,
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Selected Financial Ratios and Other Data: 1999 1998 1999 1998
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Performance Ratios:
Return on average assets (1) 1.29% (8) 1.27% (8) 1.22% (8) 1.26% (8)
Return on average equity (2) 10.86% (8) 9.45% (8) 9.91% (8) 9.33% (8)
Interest rate spread information:
Average during period (3) 3.16% (8) 3.28% (8) 3.05% (8) 3.20% (8)
End of period (3) 3.04% 2.85% 3.04% 2.85%
Net interest margin (3) (4) 3.67% (8) 3.89% (8) 3.62% (8) 3.84% (8)
Operating expense to average assets 1.83% (8) 1.97% (8) 1.88% (8) 1.90% (8)
Efficiency ratio (5) 47.80% 49.09% 49.76% 48.64%
Dividend payout ratio (6) 37.50% 40.00% 41.67% 40.54%
Performance Ratios Excluding Affiliates (7):
Return on average assets (1) 1.30% (8) 1.27% (8) 1.24% (8) 1.27% (8)
Return on average equity (2) 10.97% (8) 9.48% (8) 10.07% (8) 9.40% (8)
Operating expense to average assets 1.78% (8) 1.90% (8) 1.80% (8) 1.84% (8)
Efficiency ratio (5) 46.89% 48.04% 48.40% 47.75%
Quality Ratios (end of period):
Non-performing assets to total assets 0.55% 0.53% 0.55% 0.53%
Allowance for loan losses to non-performing assets 75.62% 81.15% 75.62% 81.15%
Allowance for loan losses to gross loans outstanding 0.59% 0.59% 0.59% 0.59%
Capital Ratios:
Equity to total assets at end of period 11.46% 13.10% 11.46% 13.10%
Average equity to average assets 11.86% 13.41% 12.34% 13.52%
Book value per share $10.29 $10.41 (9) $10.29 $10.41 (9)
Tangible book value per share $10.26 $10.41 (9) $10.26 $10.41 (9)
Change in book value and tangible book value
per share due to SFAS No. 115 $ 0.04 $0.11 (9) $ 0.04 $ 0.11 (9)
Ratio of average interest-earning assets to
average interest-bearing liabilities 1.13 x 1.15 x 1.14 x 1.15 x
<FN>
<F1> - Ratio of net income to average total assets.
<F2> - Ratio of net income to average equity.
<F3> - Ratio is presented on a fully taxable equivalent basis using the
company's federal statutory tax rate of 35%.
<F4> - Net interest income divided by average interest earning assets -
calculated without consideration of the unrealized gain on securities
available for sale.
<F5> - Ratio is calculated without consideration to goodwill amortization
and gain on sale of securities.
<F6> - Cash dividends declared per share divided by diluted earnings per
share.
<F7> - Ratios presented are not inclusive of the operations of the company's
real estate and insurance affiliates which began operations in
September 1997 and April 1998, respectively.
<F8> - Annualized.
<F9> - Book value per share figures have been restated in accordance with
Statement of Financial Accounting Standards No. 128 - Earnings per
Share, to reflect a 100% stock dividend declared on January 19, 1999.
</FN>