FORM 8-K
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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 17, 2001
Oregon Trail Financial Corp.
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(Exact name of registrant as specified in its charter)
Oregon 0-22953 91-1829481
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State or other jurisdiction Commission (I.R.S. Employer
of incorporation File Number Identification No.)
2055 First Street, Baker City, Oregon 97814
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number (including area code): (541) 523-6327
Not Applicable
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(Former name or former address, if changed since last report)
Item 5. Other Events
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On May 17, 2001, the Registrant announced its quarterly and yearly
earnings. For further information, reference is made to the Registrant's
press release dated May 17, 2001, which is attached hereto as Exhibit 99 and
incorporated herein by reference.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits
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Exhibit
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99 Press Release dated May 17, 2001
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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, hereunto duly authorized.
OREGON TRAIL FINANCIAL CORP.
DATE: May 17, 2001 By: /s/ Berniel L. Maughan
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Berniel L. Maughan
President and Chief Executive Officer
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Exhibit 99
Press Release Dated May 17, 2001
Press Release
OREGON TRAIL FINANCIAL CORP. ANNOUNCES 53% INCREASE IN FOURTH QUARTER EARNINGS
AND YEAR END RESULTS
BAKER CITY, Ore., May 15 / -- Oregon Trail Financial Corp. (Nasdaq: OTFC -
news) the holding company for Pioneer Bank, a Federal Savings Bank, announced
quarterly earnings increased 53% to $.26 per share compared to $.17 per share
for the March 31 quarter a year ago. ``The increased earnings reflect the
positive changes we have made throughout the year,'' noted President and CEO
Berniel Maughan. ``We are very pleased with the results of our restructuring.
Excluding non-recurring legal expenses related to an activist shareholder, we
achieved earnings per share of $.29, a 71% increase compared to the quarter a
year earlier, which was $.05 per share in excess of our January 19, 2001,
earnings guidance.'' Earnings for the fiscal year ended March 31, 2001,
however, decreased 31% to $.51 per share due to restructuring charges taken in
the second and third quarters.
Quarterly earnings were increased by successful execution of the business plan
which included balance sheet restructuring with an increased focus on business
and consumer lending, a de-emphasis of investment securities and a reduction
of interest rate risk. For the year business loans increased 42% to $39.0
million and consumer loans grew 19% to $53.0 million while securities
decreased 21% to $96.9 million.
Reflecting the growth in business and commercial loans, OTFC increased loan
loss reserves $702,000 to $2.1 million, or .84% of net loans, for the year
ended March 31, 2001. OTFC, however, continues to emphasize high credit
standards as evidenced by its ratio of reserves to non-performing loans. As of
the balance sheet date, reserves were 3,815% of non-performing loans compared
to 901% as of March 31, 2000.
Other emphasis in the business plan included non-interest income growth as
well as non-interest expense control. For the year, non-interest income
increased 35% to $2.2 million compared to $1.6 million for the year ended
March 31, 2000. The bulk of the increase in fee income was attributable to new
deposit products and services. The Bank expects fee income to increase further
in the upcoming year as a result of a conforming mortgage brokerage and sales
program begun in April, 2001. Despite the substantial growth in revenue and
loans, non-interest expense did not increase for the quarter when compared to
the period a year earlier, and decreased by 6% excluding non-recurring legal
fees.
During the past year, OTFC's revenues (net interest income before provision
for loan losses plus non-interest income) increased 5% to $15.0 million. The
earnings benefit from new fee-generating deposit products accelerated
throughout the year. For the quarter ended March 31, 2001, non-interest income
increased to $574,000, a 73% increase when compared to the quarter a year ago.
Non-interest expense increased, primarily due to restructuring charges, 18% to
$11.9 million for the year compared to $10.1 million a year earlier. However,
quarter over quarter non-interest expense decreased (excluding non-recurring
legal fees), as noted above.
Net income decreased to $.51 per share or $1.7 million for the year ended
March 31, 2001. However, net of restructuring charges and non-recurring legal
fees, net income increased 71% for the quarter and 10% for the year to
$953,000 and $2.91 million respectively.
The Company had total assets of $388.9 million at March 31, 2001, an increase
of $18.3 million from $370.6 million at March 31, 2000. For the year, net
loans increased 14%, or $30.3 million, to $250.9 million from $220.6 million
at March 31, 2000. Offsetting the increase in loans, was a 21%, or $25.1
million, decrease in securities to $96.9 million. Funding the loan growth, was
a 7%, or $16.0 million, increase in deposits offset by a 5%, or $3.6 million,
reduction in other borrowings.
During the year, OTFC's book value per share increased 9% to $17.38 per share.
On January 19, 2001, OTFC announced the completion of the March 2, 2000,
repurchase program and a new 10% stock repurchase program. Since the
announcement, 10,700 shares have been repurchased and OTFC remains committed
to increase earnings per share through stock repurchases while shares trade at
significant discounts to book value and purchases are anticipated to be
accretive.
Oregon Trail Financial Corp. is headquartered in Baker City, Oregon and is the
parent company of Pioneer Bank, which was founded in 1901. The Company
operates nine full service locations in seven eastern Oregon counties.
Forward-Looking Information
This press release contains statements about the Company's future results and
may constitute forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. These forward-looking statements may
be identified by the use of such words as ``believe,'' ``may,'' ``expect,''
``planned,'' ``anticipated'' and ``potential.'' We have used forward-looking
statements to describe future plans and strategies, including our expectations
of the Company's future financial results. These forward-looking statements
are based on current expectations and the current economic environment.
Management's ability to predict results or the effect of future plans or
strategies is inherently uncertain. Factors which could cause actual results
to differ materially include, but are not limited to, general and local
economic conditions, changes in interest rates, deposit flows, demand for
mortgages and other loans, real estate values, competition, loan delinquency
rates, changes in accounting principles, practices, policies or guidelines,
changes in legislation or regulation, and other economic, competitive,
governmental, regulatory and technological factors effecting operations,
pricing, products and services. Accordingly, these factors should be
considered in evaluating the forward-looking statements, and undue reliance
should not be placed on such statements.
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OREGON TRAIL FINANCIAL CORP
(unaudited) (in thousands except share data)
Year Ended Quarter Ended
FINANCIAL HIGHLIGHTS 31-Mar-01 31-Mar-00 31-Mar-01 31-Mar-00
(ratios annualized)
Interest income $28,279 $24,548 $6,961 $6,541
Interest expense 15,392 11,776 3,749 3,320
Provision for loan losses 794 178 71 60
Net interest income after
provision for loan losses 12,093 12,594 3,141 3,161
Noninterest income 2,155 1,602 574 331
Noninterest expense 11,904 10,115 2,638 2,637
Provision for income taxes 650 1,472 228 298
Net income $1,694 $2,609 $849 $557
Basic Earnings Per Share $0.51 $0.74 $0.26 $0.17
Diluted Earnings Per Share $0.50 $0.70 $0.25 $0.16
Weighted average common
shares outstanding
Basic 3,331,002 3,546,873 3,324,734 3,404,557
Diluted 3,367,210 3,723,600 3,402,795 3,549,604
FINANCIAL STATISTICS
Return on average assets 0.44% 0.76% 0.90% 0.62%
Return on average equity 3.09% 4.60% 6.05% 4.19%
Average equity/average assets 14.28% 16.55% 14.81% 14.66%
Average equity/average
loans 22.59% 27.54% 22.89% 24.32%
Efficiency ratio (noninterest
expense/revenue) 79.14% 70.37% 71.01% 75.52%
Noninterest expense/average
assets 3.10% 2.95% 2.78% 2.92%
Net interest margin 3.51% 3.89% 3.57% 3.73%
Average interest-earning
assets/average interest-
bearing liabilities 112.62% 116.19% 112.72% 113.13%
BALANCE SHEET HIGHLIGHTS 31-Mar-01 31-Mar-00
Total Assets $388,881 $370,612
Loans receivable, net 250,897 220,591
Mortgage backed securities 69,998 84,615
Investment securities 26,926 37,436
Deposits 253,777 237,735
Advances from Federal Home Loan Bank of Seattle 73,125 76,750
Total shareholders' equity $57,806 $53,104
Book value per share $17.38 $16.01
Shares outstanding 3,325,757 3,317,006
Equity/Total Assets 14.86% 14.33%
Spread (yield, less cost of funds) 2.98% 3.10%
Core Capital to Total Assets 12.54% 14.04%
Risk based capital to risk-weighted assets 22.26% 27.75%
Number of full-time equivalent employees 113 135
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At or For At or For
the Year the Year
LOANS (A) Ended Ended
(unaudited) (in thousands except share data) 31-Mar-01 31-Mar-00
Loan Originations $103,783 $101,399
Loan portfolio analysis:
Real estate loans:
Residential $136,348 $127,026
Construction 1,399 3,647
Agricultural 3,548 2,420
Commercial 19,631 16,669
Total real estate loans 160,926 149,762
Other Loans:
Home equity 15,890 12,567
Auto 26,501 21,547
Other Consumer 10,602 10,596
Commercial 23,022 14,240
Agricultural 16,054 13,275
Total Other Loans 92,069 72,225
Total Gross Loans Receivable $252,995 $221,987
(A) Certain prior period amounts were reclassified for comparative
reporting
Allowance for loan losses:
Balance at beginning of period $1,396 $1,228
Provision for loan losses 794 178
Charge offs (net of recoveries) (92) (10)
Balance at end of period $2,098 $1,396
Loan loss allowance/net loans 0.84% 0.63%
Loan loss allowance/non-performing loans 3814.55% 900.65%
Non-performing assets:
Non-accrual loans $55 $155
Real estate owned $41 $0
Other repossessed assets $22 $8
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