SECURITIES AND EXCHANGE COMMISSION
Washington, DC 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)
July 28, 1997
CLASSIC BANCSHARES, INC.
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(Exact name of Registrant as specified in its Charter)
Delaware 0-27170 61-1289391
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(State or other jurisdiction (Commission File No.)(IRS Employer Identification
of incorporation) No.)
344 17th Street, Ashland, Kentucky 41101
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (606) 325-4789
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N/A
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(Former name or former address, if changed since last report)
Item 5. Other Events
On July 28, 1997, the Registrant issued the press release attached hereto
as Exhibit 99 announcing its earnings for the quarter ended June 30, 1997 and
the declaration of a cash dividend.
Item 7. Financial Statements and Exhibits
(a) Exhibits
99 Press release dated July 28, 1997.
PAGE
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.
CLASSIC BANCSHARES, INC.
Date: August 21, 1997 By: /s/David B. Barbour
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David B. Barbour, President and
Chief Executive Officer
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EXHIBIT 99
PAGE
CLASSIC BANCSHARES, INC.
FOR IMMEDIATE RELEASE
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For Additional Information Contact:
David B. Barbour, President and Chief Executive Officer
Lisah Frazier, Vice President, Treasurer and Chief Financial Officer
(606) 325-4789
Fax (606) 324-1307
CLASSIC BANCSHARES, INC. ANNOUNCES FIRST QUARTER EARNINGS
AND DECLARES A CASH DIVIDEND
Ashland, Kentucky, -- July 28, 1997 -- Classic Bancshares, Inc. (Nasdaq
- - CLAS) had net income for the first quarter ended June 30, 1997 of $237,000
compared to net income in the same quarter of 1996 of $161,000. Return on
average assets was .7% for the quarter ended June 30, 1997 compared to .9% for
the same period in 1996. Earnings per share was $.20 for the quarter ended
June 30, 1997 and $.13 for the quarter ended June 30, 1996.
Classic Bancshares' assets decreased $1.1 million from $131.6 million at
March 31, 1997 to $130.5 million at June 30, 1997. The decrease resulted from
a decrease in cash and cash equivalents of approximately $6.2 million and a
decrease in investment securities offset by an increase in loans and an
increase in mortgage-backed securities. Loans increased $4.4 million from
$81.7 million at March 31, 1997 to $86.1 million at June 30, 1997. The
increase in loans is primarily the result of aggressive origination efforts.
The decrease in cash and cash equivalents was also used to fund the outflow of
deposits and repurchase agreements. Deposits decreased $1.4 million from
$100.5 million at March 31, 1997 to $99.1 million at June 30, 1997.
Repurchase agreements decreased $1.3 million from $4.9 million at March 31,
1997 to $3.6 million at June 30, 1997. Repurchase agreements decreased $1.3
million from $4.9 million at March 31, 1997 to $3.6 million at June 30, 1997.
non-performing assets were .9% of total assets at June 30, 1997 compared to
.6% at June 30, 1996.
President and Chief Executive Officer, David B. Barbour, stated that,
"the current quarter results are indicative of the accretive effect on
earnings resulting from our September 30, 1996 acquisition of First
Paintsville Bancshares. Our First National Bank of Paintsville subsidiary
continues to perform at a solid pace which allows us the flexibility to
continue our strategy of converting our thrift subsidiary (Classic Bank) to a
commercial banking environment. The expansion of our deposit and loan product
line and extended banking hours at our Classic Bank subsidiary, while costly
in the short term, positions us for higher levels of profitability in future
periods. Our addition of two new banking offices during the latter part of
1997 will allow for the acquisition of lower costs deposits in the future."
"Earnings per share of $.20 for the current quarter represents a 54%
increase over the $.13 per share recorded in the same period in 1996. We
remain focused on improving net interest margins at both subsidiaries while
upgrading our operating efficiency."
Net interest income was $1.2 million for the quarter ended June 30, 1997
as compared to $538,000 for the quarter ended June 30, 1996. The increase in
net interest income resulted primarily from the acquisition of the First
National Bank of Paintsville on September 30, 1996, as well as the origination
of higher yielding loans. Net interest income also increased due to a
decrease in the average cost of deposits as a result of the increase in non-
certificate accounts, including transaction accounts, also as a result of the
acquisition. The net interest margin was 3.9% for the quarter ended June 30,
1997 as compared to 3.3% for the quarter ended June 30, 1996.
Total non-interest expense for the quarter ended June 30, 1997 was
$921,000 compared to $320,000 for the same period in 1996. The increase
resulted from one-time expenses associated with the conversion of Classic Bank
to the data processing system owned by First National and costs incurred as a
result of the Company's strategy to consolidate corporate functions. The
increase also resulted from costs associated with the introduction of new
products, an increase in marketing and advertising, a net increase in the
number of employees as a result of the acquisition of First National,
increased personnel costs from employee benefit plans and the inclusion of
First National's expenses for the quarter ended June 30, 1997.
Stockholders' equity was $19.3 million at June 30, 1997 as compared to
$19.4 million at March 31, 1997. The decrease in equity was the result of the
purchase of 15,000 treasury shares during the quarter. The book value per
share was $15.94 at June 30, 1997.
Classic Bancshares, Inc. also announced that the Company will pay a
quarterly cash dividend of $.07 per share. The dividend will be payable on
August 25, 1997 to shareholders of record on August 11, 1997.
Classic Bancshares, Inc. is headquartered in Ashland, Kentucky and has
two subsidiaries, Classic Bank (formerly Ashland Federal Savings Bank) and
First National Bank of Paintsville. Classic Bank operates at 344 Seventeenth
Street, Ashland, Kentucky. First National Bank of Paintsville operates at 240
Main Street, Paintsville, Kentucky.
When use in this press release, the words or phrases "should result,"
"will likely result," "are expected to," "will continue," "is anticipated,"
"estimate," "project" or similar expressions are intended to identify
"forward-looking statements" within the meaning of the Private Securities
Litigation Reform Act of 1995. Such statements are subject to certain risks
and uncertainties, including changes in economic condition in the Company's
market area, changes in policies by regulatory agencies, fluctuations in
interest rates, demand for loans in the Company's market areas and
competition, that could cause actual results to differ materially from
historical earnings and those presently anticipated or projected. The Company
wishes to caution readers not to place undue reliance on such forward-looking
statements, which speak only as of the date made. The Company wishes to
advise readers that the factors listed could affect the Company's financial
performance and could cause the Company's actual results for future periods to
differ materially from any opinions or statements expressed with respect to
future periods in any current statements.
The Company does not undertake-and specifically declines any obligation-
to publicly release the result of any revisions which may be made to any
forward-looking statements to reflect events or circumstances after the date
of such statements or to reflect the occurrence of anticipated or
unanticipated events.
SEE FOLLOWING PAGES FOR
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SELECTED FINANCIAL DATA
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INCLUDED AS PART OF THIS RELEASE
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SELECTED FINANCIAL DATA
The following table sets forth selected financial date of Classic
Bancshares, Inc. as of June 30, 1997 and March 31, 1997 and for the three
months ended June 30, 1997 and 1996.
June 30, March 31,
1997 1997
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(In Thousands)
Selected Financial Condition Data:
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Total Assets $ 130,525 $ 131,554
Cash and other interest bearing deposits
with other financial institutions 2,874 9,127
Loans receivable, net 86,140 81,728
Investment securities:
Available for sale 22,941 23,375
Mortgage-backed securities:
Available for sale 8,849 7,885
Goodwill 2,996 3,026
Deposits 99,108 100,519
Securities sold under agreement to repurchase 3,645 4,956
FHLB advantages 6,310 4,750
Stockholders' Equity, subject to certain
restrictions 19,340 19,370
Three Months Ended
June 30
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1997 1996
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(In Thousands)
Selected Operations Data:
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Total interest income $ 2,369 $ 1,159
Total interest expense 1,180 621
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Net interest income 1,189 538
Provision for losses on loans 48 15
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Net interest income after provision
for losses on loans 1,141 523
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Fees and service charges 74 9
Gain on sale of mortgage-backed & other
securities 1 ---
Other noninterest income 34 3
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Total noninterest income 109 12
Total noninterest expense 921 320
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Income before income taxes 329 215
Income tax expense 92 54
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Net income $ 237 $ 161
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At or for the Three Months Ended
June 30,
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1997 1996
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Other Data:
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Return on average assets (ratio of net
income to total average assets)* .7% .9%
Net interest margin** 3.9 3.3
Non-performing assets to total assets .9 .6
Allowance for loan losses to non-
performing loans 93.6 67.4
Equity to total assets at end of period 14.8 28.4
Efficiency ratio*** 70.9 64.9
Primary earnings per share $0.20 $0.13
Number of full service offices 3 1
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* Annualized
** Net interest income annualized divided by average-earning assets.
*** Non-interest expenses divided by the total of net interest income and
non-interest income.