-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, WzZ4aR0DXECcvS+91AumGSCxCBGX3E4NWgh1u9x6RUtKz4h57YY2+uK1dzO3hgsD 1GdqPB+lD6wRtB9uqw8wVw== 0000950134-03-013674.txt : 20031020 0000950134-03-013674.hdr.sgml : 20031020 20031020152249 ACCESSION NUMBER: 0000950134-03-013674 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20031017 ITEM INFORMATION: ITEM INFORMATION: Financial statements and exhibits ITEM INFORMATION: Regulation FD Disclosure FILED AS OF DATE: 20031020 FILER: COMPANY DATA: COMPANY CONFORMED NAME: LOCAL FINANCIAL CORP /NV CENTRAL INDEX KEY: 0001047125 STANDARD INDUSTRIAL CLASSIFICATION: NATIONAL COMMERCIAL BANKS [6021] IRS NUMBER: 650424192 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-13949 FILM NUMBER: 03947756 BUSINESS ADDRESS: STREET 1: 3601 NW 63RD ST CITY: OKLAHOMA CITY STATE: OK ZIP: 73116-2087 BUSINESS PHONE: 4058412298 MAIL ADDRESS: STREET 1: 3601 NW 63RD ST CITY: OKLAHOMA CITY STATE: OK ZIP: 73116 8-K 1 d09784e8vk.txt FORM 8-K 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 October 17, 2003 - -------------------------------------------------------------------------------- (Date of earliest event reported) LOCAL FINANCIAL CORPORATION - -------------------------------------------------------------------------------- (Exact name of registrant as specified in its charter) Delaware 001-13949 65-0424192 - -------------------------------------------------------------------------------- (State or other jurisdiction (Commission File Number) (IRS Employer of incorporation) Identification No.) 3601 N.W. 63rd Street, Oklahoma City, Oklahoma 73116 - -------------------------------------------------------------------------------- (Address of principal executive offices) (Zip Code) (405) 841-2298 - -------------------------------------------------------------------------------- (Registrant's telephone number, including area code) Not Applicable - -------------------------------------------------------------------------------- (Former name, former address and former fiscal year, if changed since last report) ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS (a) Not applicable. (b) Not applicable. (c) The following exhibit is included with this Report: Exhibit 99.1 Press Release dated October 17, 2003. ITEM 9. REGULATION FD DISCLOSURE On October 17, 2003, Local Financial Corporation announced by press release its earnings for the quarter ended September 30, 2003. A copy of the press release is attached hereto as Exhibit 99.1. The information contained in this Report on Form 8-K is furnished pursuant to Item 12. SIGNATURE 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. LOCAL FINANCIAL CORPORATION By: /s/ Richard L. Park --------------------------------- Richard L. Park Chief Financial Officer Date: October 20, 2003 EX-99.1 3 d09784exv99w1.txt PRESS RELEASE EXHIBIT 99.1 FOR FURTHER INFORMATION CONTACT OCTOBER 17, 2003 RICHARD L. PARK LOCAL FINANCIAL CORPORATION 405-841-2298 LOCAL FINANCIAL CORPORATION REPORTS RESULTS FOR THIRD QUARTER 2003 Oklahoma City - Local Financial Corporation (NASDAQ:LFIN). Local Financial Corporation (the "Company") today announced third quarter 2003 diluted earnings per share of $.40, up 3 cents or 8.1 percent from the same quarter in the prior year. Diluted earnings per share for the nine months ended September 30, 2003, were $1.18, up 7.3 percent from the same period last year. Diluted earnings per share include the effect of the Company's share repurchase program under which the Company repurchased 400,000 and 1,379,100 shares, respectively, in both the three and nine months ended September 30, 2003, at an average share price of $16.00 and $15.25, respectively. Net income for the three and nine months ended September 30, 2003 was $7.0 million and $21.1 million, respectively, versus $7.4 million and $21.9 million for the same periods last year. "Interest rate spreads were further compressed during the quarter and will continue under pressure as long as rates remain at these historically low levels," stated Chairman and Chief Executive Officer Edward A. Townsend. "During the quarter, the Company continued its emphasis on generating noninterest income and managing noninterest expense, which is key in maintaining profitability in this rate environment," stated Mr. Townsend. The Company reported an 18.6 percent increase year-to-date in noninterest income as it continued its focus on depository services including commercial cash management. Demand deposits increased by $93.3 million or 11.9% on a sequential quarter basis and $122.7 million or 16.2% since December 31, 2002. Noninterest expenses remained flat in the three-month comparative period. "We must continue to focus on revenue diversification and discretionary expense control to help counter the effects of the low rate environment," stated Mr. Townsend. At September 30, 2003, the Company's level of nonperforming assets of $9.3 million, .41 percent of total loans, continues to compare favorably with its peers. The Company's provision for loan losses was consistent with the third quarter of the prior year at $1.5 million, bringing year-to-date provision to $5.1 million versus net charge-offs of $4.3 million. Local Financial Corporation, with assets of $2.9 billion, is the parent company of Local Oklahoma Bank. It operates 52 branch offices providing personalized banking services to businesses and individuals in 33 communities in the state of Oklahoma, with major concentration in the metropolitan areas of Oklahoma City, Tulsa, and Lawton. ---------- To the extent that statements in this report relate to the plans, objectives or future performance of Local Financial Corporation, these statements are considered to be forward- looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are based on management's current expectations and the current economic environment. Actual events and results in future periods may differ materially from those currently expected due to various risks and uncertainties. Additional discussion of factors affecting Local Financial Corporation's business and prospects is contained in its periodic filings with the Securities and Exchange Commission. LOCAL FINANCIAL CORPORATION AND SUBSIDIARIES FINANCIAL HIGHLIGHTS (Dollars in thousands) (unaudited)
NINE MONTHS ENDED THREE MONTHS ENDED SEPTEMBER 30, SEPTEMBER 30, ------------------------------ PERCENT ------------------------ PERCENT 2003 2002 CHANGE 2003 2002 CHANGE ------------- ------------- ----------- ---------- ---------- ---------- SELECTED FINANCIAL RATIOS: Yield on earning assets 5.69% 6.71% (15.2)% 5.43% 6.69% (18.8)% Cost of funds 2.76 3.51 (21.4) 2.61 3.39 (23.0) Interest rate spread 2.93 3.20 (8.4) 2.82 3.30 (14.5) Net interest margin 3.17 3.50 (9.4) 3.01 3.58 (15.9) Return on average assets 1.00 1.05 (4.8) 0.96 1.05 (8.6) Return on average equity 16.72 17.26 (3.1) 16.44 16.77 (2.0)
NINE MONTHS ENDED THREE MONTHS ENDED SEPTEMBER 30, SEPTEMBER 30, ------------------------------ PERCENT ------------------------ PERCENT 2003 2002 CHANGE 2003 2002 CHANGE ------------- ------------- ----------- ---------- ---------- ---------- STATEMENT OF OPERATIONS DATA: Net interest income $ 63,467 $ 69,922 (9.2)% $ 20,481 $ 23,831 (14.1)% Provision for loan losses (5,100) (5,100) -- (1,500) (1,500) -- Noninterest income 25,429 21,448 18.6 8,786 7,175 22.5 Noninterest expense 52,693 53,036 (0.6) 18,027 18,028 -- Net income 21,111 21,914 (3.7) 6,950 7,370 (5.7)
PERCENT 9/30/03 12/31/02 CHANGE ---------- ---------- -------- FINANCIAL CONDITION DATA: Total assets $2,940,697 $2,839,858 3.6% Loans receivable, net 2,236,015 2,084,144 7.3 Securities available for sale 89,041 163,473 (45.5) Securities held to maturity 254,844 364,832 (30.1) Demand deposits and savings deposits 977,499 839,459 16.4 Total deposits 1,979,316 1,829,439 8.2 Advances from the Federal Home Loan Bank of Topeka 635,020 684,193 (7.2) Senior Notes 21,295 21,295 -- Mandatorily redeemable trust preferred 60,250 60,250 -- securities Stockholders' equity 168,710 167,880 0.5 Allowance for loan losses 30,358 29,532 2.8
REGULATORY RATIOS - HOLDING COMPANY: Core Capital (Tier 1) to Net Risk Weighted 9.37% Assets Total Capital (Tier 1 & 2) to Net Risk Weighted Assets 10.82% Leverage Ratio 7.15%
LOCAL FINANCIAL CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (Dollars in thousands, except share data) (unaudited)
THREE MONTHS ENDED --------------------------------------------------------------------------------- 9/30/03 6/30/03 3/31/03 12/31/02 9/30/02 ------------- ------------- ------------- ------------- ------------- INTEREST INCOME: Loans $ 32,639 $ 32,979 $ 33,049 $ 33,651 $ 34,745 Securities available for sale and held to maturity 3,827 3,947 6,262 7,735 9,196 Federal Home Loan Bank of Topeka and Federal Reserve Bank stock 375 370 361 371 430 Other investments 87 17 22 31 171 ------------- ------------- ------------- ------------- ------------- Total interest income 36,928 37,313 39,694 41,788 44,542 INTEREST EXPENSE: Deposit accounts 8,079 8,370 8,960 10,659 12,573 Advances from the Federal Home Loan Bank of Topeka 6,507 6,422 6,479 6,476 6,353 Securities sold under agreements to 65 76 107 155 129 repurchase Senior Notes 629 629 629 632 636 Trust preferred securities 1,167 1,171 1,178 1,157 1,020 ------------- ------------- ------------- ------------- ------------- Total interest expense 16,447 16,668 17,353 19,079 20,711 Net interest income 20,481 20,645 22,341 22,709 23,831 Provision for loan losses (1,500) (1,800) (1,800) (1,500) (1,500) ------------- ------------- ------------- ------------- ------------- Net interest income after provision for loan 18,981 18,845 20,541 21,209 22,331 losses NONINTEREST INCOME: Deposit related income 5,984 6,182 5,476 4,996 4,996 Loan fees and loan service charges 548 609 653 386 489 Net gains on sale of assets 474 252 136 52 97 Other 1,780 1,775 1,560 1,607 1,593 ------------- ------------- ------------- ------------- ------------- Total noninterest income 8,786 8,818 7,825 7,041 7,175 NONINTEREST EXPENSE: Compensation and employee benefits 12,077 9,847 10,566 10,803 10,906 Equipment and data processing 1,570 1,575 1,700 1,467 1,516 Occupancy 1,236 1,124 1,338 1,197 1,242 Advertising 178 152 127 182 182 Professional fees 441 415 263 288 339 Other 2,525 3,818 3,741 3,558 3,843 ------------- ------------- ------------- ------------- ------------- Total noninterest expense 18,027 16,931 17,735 17,495 18,028 ------------- ------------- ------------- ------------- ------------- Income before provision for income taxes 9,740 10,732 10,631 10,755 11,478 Provision for income taxes 2,790 3,641 3,561 3,654 4,108 ------------- ------------- ------------- ------------- ------------- Net income $ 6,950 $ 7,091 $ 7,070 $ 7,101 $ 7,370 ============= ============= ============= ============= ============= Earnings per share: Net income: Basic $ 0.41 $ 0.41 $ 0.40 $ 0.39 $ 0.39 ============= ============= ============= ============= ============= Diluted $ 0.40 $ 0.40 $ 0.38 $ 0.38 $ 0.37 ============= ============= ============= ============= ============= Average shares outstanding: Basic 16,755,495 17,143,219 17,797,691 18,321,649 18,991,744 ============= ============= ============= ============= ============= Diluted 17,447,092 17,724,125 18,408,968 18,898,955 19,681,824 ============= ============= ============= ============= =============
LOCAL FINANCIAL CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Dollars in thousands, except share data)
9/30/03 12/31/02 % CHANGE ------------ ------------ ------------- (unaudited) ASSETS Cash and due from banks $ 49,601 $ 51,166 (3.1) Interest bearing deposits with other banks 126,000 7,200 -- Securities available for sale 89,041 163,473 (45.5) Securities held to maturity 254,844 364,832 (30.1) Loans receivable, net of allowance for loan losses of $30,358 at September 30, 2003 and $29,532 at December 31, 2002 2,236,015 2,084,144 7.3 Federal Home Loan Bank of Topeka and Federal Reserve Bank stock, at cost 39,499 38,187 3.4 Premises and equipment, net 43,325 42,415 2.1 Assets acquired through foreclosure and repossession, net 928 1,693 (45.2) Intangible assets, net 19,441 19,695 (1.3) Current and deferred taxes, net 10,723 9,428 13.7 Other assets 71,280 57,625 23.7 ------------ ------------ Total assets $ 2,940,697 $ 2,839,858 3.6 ============ ============ ============ LIABILITIES AND STOCKHOLDERS' EQUITY Deposits: Demand $ 879,160 $ 756,476 16.2 Savings 98,339 82,983 18.5 Time 1,001,817 989,980 1.2 ------------ ------------ Total deposits 1,979,316 1,829,439 8.2 Advances from the Federal Home Loan Bank of Topeka 635,020 684,193 (7.2) Securities sold under agreements to repurchase 57,318 59,696 (4.0) Senior Notes 21,295 21,295 -- Other liabilities 18,788 17,105 9.8 Mandatorily redeemable trust preferred securities 60,250 60,250 -- ------------ ------------ Total liabilities 2,771,987 2,671,978 3.7 Stockholders' equity: Common stock, $0.01 par value, 25,000,000 shares authorized; 20,975,967 shares issued and 16,518,223 shares outstanding at September 30, 2003 and 20,863,967 shares issued and 17,785,323 shares outstanding at December 31, 2002 210 209 0.5 Preferred stock, $0.01 par value, 5,000,000 shares authorized; none -- -- -- outstanding Additional paid-in capital 209,878 208,599 0.6 Retained earnings 172,606 151,495 13.9 Treasury stock, 4,457,744 shares at September 30, 2003 and 3,078,644 shares at December 31, 2002, at cost (214,811) (193,783) 10.9 Accumulated other comprehensive income, net of tax 827 1,360 (39.2) ------------ ------------ Total stockholders' equity 168,710 167,880 0.5 ------------ ------------ Total liabilities and stockholders' equity $ 2,940,697 $ 2,839,858 3.6 ============ ============ ============
LOCAL FINANCIAL CORPORATION AND SUBSIDIARIES NONPERFORMING ASSETS (Dollars in thousands) (unaudited)
9/30/03 6/30/03 NET CHANGE 9/30/02 NET CHANGE ---------- ---------- ---------- ---------- ---------- Non-accruing loans: Commercial $ 5,001 $ 9,215 $ (4,214) $ 7,523 $ (2,522) Residential/Consumer 3,233 2,571 662 2,869 364 ---------- ---------- ---------- ---------- ---------- Total 8,234 11,786 (3,552) 10,392 (2,158) Accruing loans 90 days or more delinquent: Commercial 51 -- 51 231 (180) Residential/Consumer 81 157 (76) -- 81 ---------- ---------- ---------- ---------- ---------- Total 132 157 (25) 231 (99) Foreclosed Assets: Commercial 435 487 (52) 265 170 Residential/Consumer 493 1,138 (645) 617 (124) ---------- ---------- ---------- ---------- ---------- Total 928 1,625 (697) 882 46 ---------- ---------- ---------- ---------- ---------- Total nonperforming assets $ 9,294 $ 13,568 $ (4,274) $ 11,505 $ 2,211 ========== ========== ========== ========== ========== Total nonperforming assets as a percentage of total assets 0.32% 0.48% 0.41% ========== ========== ========== Total nonperforming loans as a percentage of total allowance 27.56% 39.69% 37.31% ========== ========== ========== Total nonperforming assets as a percentage of total loans 0.41% 0.62% 0.58% ========== ========== ========== Total nonperforming loans as a percentage of total loans 0.37% 0.54% 0.53% ========== ========== ========== Total nonperforming loans as a percentage of total capital 4.96% 7.11% 6.03% ========== ========== ==========
LOCAL FINANCIAL CORPORATION AND SUBSIDIARIES ALLOWANCE FOR LOAN LOSSES (Dollars in thousands) (unaudited)
THREE MONTHS ENDED SEPTEMBER 30, ----------------------------- 2003 2002 ------------ ------------ Beginning balance $ 30,087 $ 28,354 Provision 1,500 1,500 Charge-Offs: Commercial (960) (952) Consumer (261) (466) Residential (92) (199) ------------ ------------ Total charge-offs (1,313) (1,617) ------------ ------------ Recoveries 84 237 ------------ ------------ Net losses (1,229) (1,380) ------------ ------------ Ending balance $ 30,358 $ 28,474 ============ ============ Net losses to average loans (annualized) 0.22% 0.28% ============ ============
LOCAL FINANCIAL CORPORATION AND SUBSIDIARIES ALLOWANCE FOR LOAN LOSSES (Dollars in thousands) (unaudited)
NINE MONTHS ENDED YEAR ENDED SEPTEMBER 30, DECEMBER 31, ------------------------- ------------ 2003 2002 2002 ---------- ---------- ------------ Beginning balance $ 29,532 $ 27,621 $ 27,621 Provision 5,100 5,100 6,600 Allowances acquired -- -- 1,003 Charge-Offs: Commercial (3,652) (2,994) (4,121) Consumer (678) (1,167) (1,428) Residential (240) (483) (635) ---------- ---------- ---------- Total charge-offs (4,570) (4,644) (6,184) ---------- ---------- ---------- Recoveries 296 397 492 ---------- ---------- ---------- Net losses (4,274) (4,247) (5,692) ---------- ---------- ---------- Ending balance $ 30,358 $ 28,474 $ 29,532 ========== ========== ========== Net losses to average loans 0.26% 0.28% 0.28% ========== ========== ==========
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