For Immediate Release For Further Information:
Wednesday, August 4, 1999 Jeff Francis, President and CEO
Terri Liutkus, Treasurer and CFO
330/726-3396 - phone
330/758-1356 - fax
FFY Financial Corp. Reports FY99 Net Income of $8.1 Million
$1.11 Annual Earnings Per Diluted Share
$.30 4th Quarter Earnings Per Diluted Share
Youngstown, Ohio August 4, 1999 - FFY Financial Corp. (NASDAQ: FFYF)
announced net income of $8.1 million, or $1.11 per diluted share for its
fiscal year ended June 30, 1999. Fiscal year 99 performance represented a
5% increase in net income and 12% increase in earnings per diluted share
over fiscal year 98 net income of $7.7 million, or $.99 per diluted share.
Net income for the 4th quarter ended June 30, 1999 totaled $2.1 million, or
$.30 per diluted share. Fourth quarter 1999 performance represented an 8%
increase in net income and 20% increase in earnings per diluted share over
fourth quarter 1998 net income of $1.9 million, or $.25 per diluted share.
Assets totaled $675.7 million at June 30, 1999, an increase of $24.0
million, or 4% from $651.7 million at June 30, 1998 primarily due to growth
in the securities portfolio, which increased $49.5 million, or 35% from
$140.8 million at June 30, 1998 to $190.3 million at June 30, 1999. Net
loans receivable declined $28.2 million and totaled $454.3 million,
including $442,000 in loans available for sale at June 30, 1999. The
decline in loans was due to loans sold in the secondary market as opposed to
retained for portfolio in the low interest rate environment that existed for
a large part of the current fiscal year, 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 $457.3 million at June 30, 1999, an increase of $13.3
million, or 3% from $444.0 million at June 30, 1998 primarily due to growth
in retail money market accounts. Long-term borrowings, which totaled $60.0
million at June 30, 1999, were used to fund growth in the securities
portfolio and to repay short-term repurchase agreements and short-term
borrowings, which declined $6.5 million and $11.2 million, respectively
during the current fiscal year.
On July 12, 1999, the Company announced that First Federal Savings
Bank of Youngstown, a wholly owned subsidiary of FFY Financial Corp., will
officially become FFY Bank on October 1, 1999. The decision to shorten the
name was primarily made because FFY Financial Corp. has invested in
additional lines of business over the last two years and felt it
advantageous to be known by a single identity. As a result, the Company's
insurance affiliate, Daniel W. Landers Insurance will become known as FFY
Insurance. The Company's real estate affiliate, Coldwell Banker FFY Real
Estate already carries the FFY name. Expenditures related to the name
change are expected to be approximately $200,000 before tax.
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 525,607 shares have been repurchased at an average price
of $18.31 per share, leaving 233,329 shares remaining to be purchased.
Since completing its conversion to a publicly owned stock company on June
28, 1993, the Company has repurchased 6.9 million shares at an average price
of $11.89 per share, returning $82.0 million to shareholders.
At its meeting on July 20, 1999, the Company's Board of Directors
approved its regular quarterly dividend of 11.25 cents per share. The
dividend will be paid on August 12, 1999 to shareholders of record on July
30, 1999.
Except for the historical information contained herein, the matters
discussed in this press release may be deemed to be forward-looking
statements that involve risks and uncertainties, including changes in
economic conditions in the Company's market area, changes in policies by
regulatory agencies, fluctuations in interest rates, demand for loans in the
Company's market area and competition, and other risks detailed from time to
time in the Company's SEC reports, including the report on Form 10-K for the
year ended June 30, 1998 and Form 10-Q for the quarters ended September 30,
1998, December 31, 1998 and March 31, 1999. Actual strategies and results
in future periods may differ materially from those currently expected.
These forward-looking statements represent the Company's judgment as of the
date of this release. The Company disclaims, however, any intent or
obligation to update these forward-looking statements.
FFY FINANCIAL CORP. AND SUBSIDIARIES
Selected Consolidated Financial June 30, June 30, %
Condition Data: 1999 1998 Change
- ---------------------------------------------------------------------------
($ in thousands)
Total assets $675,691 $651,746 4%
Loans receivable, net 453,839 482,463 -6%
Loans available for sale 442 0 NM
Allowance for loan losses 2,645 2,740 -3%
Non-performing assets 2,356 3,324 -29%
Securities available for sale 190,326 140,793 35%
Deposits 457,343 444,017 3%
Short-term repurchase agreements (1) 6,618 13,088 -49%
Long-term repurchase agreements (1) 51,300 51,300 0%
Short-term borrowed funds 22,800 33,985 -33%
Long-term borrowed funds 60,000 0 NM
Stockholders' equity 70,117 84,216 -17%
Three months ended Year ended
June 30, June 30,
------------------------------------------------------------------
% %
Selected Consolidated Operations Data: 1999 1998 Change 1999 1998 Change
- -------------------------------------- ---- ---- ------ ---- ---- ------
($ in thousands except per share amounts)
Total interest income $12,297 $11,969 3% $49,084 $48,006 2%
Total interest expense 6,539 6,416 2% 26,515 25,559 4%
-------------------- --------------------
Net interest income 5,758 5,553 4% 22,569 22,447 1%
ovision for loan losses 114 124 -8% 494 565 -13%
-------------------- --------------------
Net interest income after
provision for loan losses 5,644 5,429 4% 22,075 21,882 1%
Service charges 264 186 42% 897 700 28%
Gain on sale of securities 91 93 -2% 203 247 -18%
Gain on sale of loans 129 101 28% 720 134 NM
Other non-interest income 179 168 7% 730 684 7%
Total non-interest expense (3,182) (3,033) 5% (12,495) (11,771) 6%
-------------------- ---------------------
Income before income taxes
and minority interest 3,125 2,944 6% 12,130 11,876 2%
Income tax expense:
Federal 1,039 1,026 1% 4,040 4,147 -3%
State (2) 0 NM 43 0 NM
Minority interest in income (loss)
of consolidated subsidiaries 12 0 NM (93) 0 NM
-------------------- --------------------
Net income $2,076 $1,918 8% $8,140 $7,729 5%
==================== ====================
Basic earnings per share $0.31 $0.26 (2) 19% $1.15 $1.03 (2) 2%
==================== ===================
Diluted earnings per share $0.30 $0.25 (2) 20% $1.11 $0.99 (2) 12%
==================== ===================
Cash dividends declared per share $0.1125 $0.10 (2) 13% $0.45 $0.40 (2) 13%
==================== ===================
<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
<F>
Note: Certain amounts in the 1998 consolidated operations data have been
reclassified to conform with the 1999 presentation
</FN>
Three months ended Year ended
June 30, June 30,
----------------------------------------------
Selected Financial Ratios and Other Data: 1999 1998 1999 1998
- ----------------------------------------- ----------------------------------------------
Performance Ratios:
Return on average assets (1) 1.24% 1.21% 1.23% 1.25%
Return on average equity (2) 11.46% 9.12% 10.26% 9.28%
Interest rate spread information:
Average during period (3) 3.16% 3.09% 3.08% 3.19%
End of period (3) 2.99% 2.94% 2.99% 2.94%
Net interest margin (3) (4) 3.64% 3.72% 3.62% 3.81%
Operating expense to average assets 1.90% 1.92% 1.88% 1.90%
Efficiency ratio (5) 49.98% 50.45% 49.84% 49.08%
Dividend payout ratio (6) 37.50% 40.00% 40.54% 40.40%
Performance Ratios Excluding Affiliates (7):
Return on average assets (1) 1.23% 1.26% 1.24% 1.27%
Return on average equity (2) 11.33% 9.45% 10.35% 9.41%
Operating expense to average assets 1.87% 1.81% 1.82% 1.84%
Efficiency ratio (5) 49.93% 48.23% 48.80% 47.89%
Quality Ratios (end of period):
Non-performing assets to total assets 0.35% 0.51% 0.35% 0.51%
Allowance for loan losses to
non-performing assets 112.27% 82.43% 112.27% 82.43%
Allowance for loan losses to
gross loans outstanding 0.58% 0.56% 0.58% 0.56%
Capital Ratios:
Equity to total assets at end of period 10.38% 12.92% 10.38% 12.92%
Average equity to average assets 10.82% 13.30% 11.96% 13.47%
Book value per share $9.85 $10.50 (8) $9.85 $10.50 (8)
Tangible book value per share $9.81 $10.49 (8) $9.81 $10.49 (8)
Change in book value and tangible book
value per share due to SFAS No. 115 ($0.40) $0.10 (8) ($0.40) $0.10 (8)
Ratio of average interest-earning
assets to average interest-bearing
liabilities 1.12 x 1.15 x 1.13 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 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>- 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>