-----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, TNiR7X0Hr1TU5PgWj/YueSpDmyhiIY3MIdh3agcFc8jEMDsCyLx0GNfA4cwae1ou 8Ozl5rHqnxwGq6AW5Jfz9A== 0000950116-98-002071.txt : 19981027 0000950116-98-002071.hdr.sgml : 19981027 ACCESSION NUMBER: 0000950116-98-002071 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19981020 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 19981026 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: WESTERFED FINANCIAL CORP CENTRAL INDEX KEY: 0000912428 STANDARD INDUSTRIAL CLASSIFICATION: SAVINGS INSTITUTION, FEDERALLY CHARTERED [6035] IRS NUMBER: 810487794 STATE OF INCORPORATION: DE FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 000-22772 FILM NUMBER: 98730537 BUSINESS ADDRESS: STREET 1: PO BOX 5388 STREET 2: 110 EAST BROADWAY CITY: MISSOULA STATE: MT ZIP: 59802 BUSINESS PHONE: 4067215254 8-K 1 FORM 8-K 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) October 20, 1998 WESTERFED FINANCIAL CORPORATION - -------------------------------------------------------------------------------- (Exact name of Registrant as specified in its Charter) Delaware 0-22772 81-0487794 - -------------------------------------------------------------------------------- (State or other (Commission File No.) (IRS Employer jurisdiction of Identification incorporation) Number) 110 East Broadway, Missoula, Montana 59802 - -------------------------------------------------------------------------------- (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (406) 721-5254 - -------------------------------------------------------------------------------- N/A - -------------------------------------------------------------------------------- (Former name or former address, if changed since last report) Item 5. Other Events On October 20, 1998 the Registrant issued the press releases attached as Exhibit 99.6. Item 7. Financial Statements and Exhibits (a) Exhibits 99.6 Press releases, dated October 20, 1998 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. WesterFed Financial Corporation Date: October 21, 1998 By: /s/ Lyle R. Grimes ------------------------------- ----------------------------------- Lyle R. Grimes President/Chief Executive Officer Index to Exhibits Sequentially Numbered Page Where Attached Exhibit Exhibits Number are located ------ ------------ 99.6 Press Releases dated October 20, 1998 5 WESTERFED FINANCIAL CORPORATION ANNOUNCES FIRST QUARTER EARNINGS Missoula, Montana - October 20, 1998 - WesterFed Financial Corporation (the "Company") (NASDAQ - WSTR), the holding company for Western Security Bank (the "Bank"), announced earnings for the first quarter ended September 30, 1998 of $1.8 million, or $0.31 per share diluted, as compared to $1.8 million, or $0.32 per share diluted, for the same period last year. The Company also announced it will pay a regular cash dividend of $0.135 per share for the quarter ended September 30, 1998 payable on November 24, 1998 to stockholders of record on November 10, 1998. The regular quarterly cash dividend of $0.135 was increased 3.8% over the prior quarter's regular cash dividend of $0.13 per share. The Company has increased regular cash dividends every quarter since becoming a public company. President/Chief Executive Officer Lyle R. Grimes stated, "Although the interest rate spread increased to 3.07% at September 30, 1998 from 2.99% at June 30, 1998, net interest income after loan loss provisions decreased $220,000 to $7.6 million for quarter ending September 30, 1998 from $7.8 million at June 30, 1998. The decrease was primarily due to an increase in loan loss provisions of $30,000 in this quarter to $240,000 from $210,000 in quarter ended June 30, 1998 and a decrease in interest earning assets. The current low interest rates encourage homeowners to refinance into longer term fixed rate loans. Because of the interest rate risk incurred with long term lending in the current low rate environment, such originations (generally thirty year) are being sold to the secondary market so that one- to four-family loans decreased by $13.2 million during this quarter. In addition, increased prepayments on mortgage-backed securities and investment securities resulted in an additional decrease of $17.0 million in these securities. Once again, with the current low interest rate environment, management has decided not to reinvest these proceeds at this time and instead used the proceeds to pay down borrowed funds by $29.2 million. Even though the total loan portfolio decreased $4.7 million as a result of the decrease in the one- to four-family loans, we are pleased that higher yielding consumer and commercial loans increased $8.5 million during the quarter, allowing the Bank to maintain it's interest rate spread." Total assets decreased $22.5 million to $999.6 million at September 30, 1998 as compared to $1.022 billion at June 30, 1998. Total loans decreased $4.7 million to $652.6 million at September 30, 1998 as compared to $657.3 million at June 30, 1998. Mortgage-backed securities decreased $7.6 million to $118.8 at September 30, 1998 from $126.4 million at June 30, 1998 and investment securities, Federal Home Loan Bank stock and all other interest earning assets decreased $9.4 million to $146.0 million at September 30, 1998 from $155.4 million at June 30, 1998. These decreases in assets were partially offset by a decrease in borrowed funds of $29.2 million to $219.8 million at September 30, 1998 as compared to $249.0 million at June 30, 1998. Total stockholders' equity increased $1.7 million to $111.4 million at September 30, 1998, or 11.2% of assets, from $109.7 million at June 30, 1998. Net income was $1.8 million for the quarter ended September 30, 1998, unchanged from the $1.8 million earned during the same period last year. Net interest income before provision for loan losses for the quarter ended September 30, 1998 was $7.9 million, a decrease of $100,000 from the same period last year. This was primarily the result of the net interest margin decreasing to 3.40% during the quarter ended September 30, 1998 from 3.50% during the same period last year. Total non-interest income increased $300,000 to $2.3 million during the quarter ended September 30, 1998 from $2.0 million during the same period last year. Non-interest expenses and income taxes increased $100,000 and $85,000 to $7.0 million and $1.2 million respectively, for the quarter ended September 30, 1998 from $6.9 million and $1.1 million, respectively, during the same period last year. Non-performing assets totaled $5.2 million at September 30, 1998, up $200,000 from $5.0 million at June 30, 1998, due primarily to an increase of $309,000 in non-performing loans secured by savings deposits. Nonperforming assets as a percentage of total assets increased to 0.52% at September 30, 1998 from 0.49% at June 30, 1998 as assets decreased $22.5 million during the quarter. The 0.52% is substantially less than the national composite for thrifts of 0.87% at June 30, 1998, which is the latest available information as reported by the Office of Thrift Supervision. The ratio of allowance for loan losses to non-performing assets decreased to 94.24% at September 30, 1998 as compared to 97.44% at June 30, 1998. The Company had $521,000 of real estate owned at September 30, 1998. WesterFed Financial Corporation's only subsidiary, Western Security Bank, Montana's largest savings bank, operates thirty-four offices in twenty Montana communities. CONTACT: Dale W. Brevik, Vice President/Marketing James A. Salisbury, Treasurer/Chief Financial Officer (406) 721-5254 CONSOLIDATED BALANCE SHEETS WESTERFED FINANCIAL CORPORATION AND SUBSIDIARIES (Dollars in thousands, except per share data)
(Unaudited) September 30, June 30, 1998 1998 ----------- ----------- ASSETS Cash and due from banks $ 18,504 $ 19,440 Interest-bearing due from banks 10,174 9,628 ----------- ----------- Cash and cash equivalents 28,678 29,068 Interest-bearing deposits -- 100 Investment securities available-for-sale 102,957 108,511 Investment securities, at amortized cost (estimated market value of $12,439 at Sept. 30, 1998 and $16,974 at June 30, 1998) 12,254 16,847 Stock in Federal Home Loan Bank of Seattle, at cost 13,817 13,560 Mortgage-backed securities available-for-sale 21,612 24,135 Mortgage-backed securities, at amortized cost (estimated market value of $100,486 at Sept. 30, 1998 and $104,962 at June 30, 1998) 97,161 102,298 Loans available-for-sale 6,250 6,922 Loans receivable, net 646,327 650,371 Accrued interest receivable 8,849 7,778 Premises and equipment, net 29,809 30,089 Core deposit intangible 4,312 4,518 Goodwill 15,596 15,762 Cash surrender value of life insurance policies 6,776 6,705 Other assets 5,197 5,472 ----------- ----------- Total assets $ 999,595 $ 1,022,136 =========== =========== LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities: Deposits $ 636,599 $ 636,441 Repurchase agreements 7,210 6,233 Borrowed funds 219,779 248,953 Advances from borrowers for taxes and insurance 7,260 4,052 Income taxes - current and deferred 3,620 2,289 Accrued interest payable 4,936 4,480 Accrued expenses and other liabilities 8,745 9,988 ----------- ----------- Total liabilities 888,149 912,436 ----------- ----------- Stockholders' Equity: Preferred stock, $.01 par value, 5,000,000 shares authorized; none outstanding -- -- Common stock, $.01 par value, 10,000,000 shares authorized; 5,588,862 shares outstanding at Sept. 30, 1998, and 5,585,303 outstanding at June 30, 1998 56 56 Paid-in capital 69,052 68,923 Common stock acquired by ESOP/RRP (2,391) (2,520) Treasury stock, at cost (3,461) (3,461) Net unrealized gain on securities available-for-sale 484 23 Retained earnings 47,706 46,679 ----------- ----------- Total stockholders' equity 111,446 109,700 ----------- ----------- Total liabilities and stockholders' equity $ 999,595 $ 1,022,136 =========== =========== Book value per share $ 19.94 $ 19.64 =========== =========== Tangible book value per share $ 16.38 $ 16.01 =========== ===========
CONSOLIDATED STATEMENTS OF INCOME WESTERFED FINANCIAL CORPORATION AND SUBSIDIARIES (Dollars in thousands, except per share data)
(Unaudited) Three Months Ended September 30, 1998 1997 ---------- ---------- Interest income: Loans receivable $ 14,066 $ 13,807 Mortgage-backed securities available-for-sale 355 579 Mortgage-backed securities 1,706 1,990 Investment securities available-for-sale 1,869 1,218 Investment securities 257 515 Interest-bearing deposits 87 143 Other 80 77 ---------- ---------- Total interest income 18,420 18,329 ---------- ---------- Interest expense: NOW and money market demand 881 817 Savings 621 690 Certificates of deposit 5,425 5,391 Advances from FHLB - Seattle and other borrowed funds 3,638 3,434 ---------- ---------- Total interest expense 10,565 10,332 ---------- ---------- Net interest income 7,855 7,997 Provision for loan losses 240 164 ---------- ---------- Net interest income after provision for loan losses 7,615 7,833 ---------- ---------- Non-interest income: Loan origination fees 687 529 Service fees 1,212 1,125 Net gain on sale of loans and securities available-for-sale 256 221 Other 172 88 ---------- ---------- Total non-interest income 2,327 1,963 ---------- ---------- Non-interest expenses: Compensation and employee benefits 3,357 3,469 Net occupancy expense of premises 516 532 Equipment and furnishings expense 553 389 Data processing expense 413 380 Federal insurance premium 88 90 Intangibles amortization 373 331 Marketing and advertising 154 257 Other 1,515 1,405 ---------- ---------- Total non-interest expense 6,969 6,853 ---------- ---------- Income before income taxes 2,973 2,943 Income taxes 1,219 1,134 ---------- ---------- Net income $ 1,754 $ 1,809 ========== ========== Net income per share: Basic $ 0.33 $ 0.34 ========== ========== Diluted $ 0.31 $ 0.32 ========== ========== Dividends per share $ 0.135 $ 0.115 ========== ========== Dividend payout ratio - diluted 43.55% 35.94% ========== ========== Average common and common equivalent shares outstanding: Basic 5,371,863 5,284,967 ========== ========== Diluted 5,676,569 5,593,069 ========== ==========
Selected Financial Ratios and Other Data:
(Unaudited) Three Months Ended September 30, ----------------------------------- 1998 1997 --------------- ---------------- Performance Ratios: Return on assets (ratio of net income to average total assets) (1) 0.70% 0.73 % Return on equity (ratio of net income to average equity) (1) 6.32 6.84 Interest rate spread information: Average during period 3.12 3.23 End of period 3.07 3.15 Net interest margin (1) (2) 3.40 3.50 Ratio of non-interest expense to average total assets (1) 2.77 2.75 Asset Quality Ratios: Non-performing assets to total assets, at end of period 0.52 0.41 Total allowance for loan losses to total non-performing assets (3) 94.24 116.74 Capital Ratios: Stockholders' equity to total assets, at end of period 11.15 10.62 Tangible stockholders' equity to tangible assets, at end of period 9.34 8.75 Ratio of average interest-earning assets to average interest-bearing liabilities 106.07 106.03 - --------------------------------------------------------------------------------------------------------------------
(1) Annualized (2) Net interest income divided by average interest-earning assets (3) Includes non-performing and foreclosed assets WESTERFED FINANCIAL CORPORATION
(Unaudited) ------------------------------------------------------------------ SEPTEMBER 30, 1998 - QTD SEPTEMBER 30, 1997 - QTD ------------------------------ ------------------------------ Average Interest Average Interest Outstanding Earned/ Yield/ Outstanding Earned/ Yield/ Balance (5) Paid Rate Balance (5) Paid Rate ------------------------------ ------------------------------ INTEREST EARNING ASSETS: (Dollars in Thousands) Loans receivable (1) (2) $657,497 $14,066 8.56% $648,412 $13,806 8.52% Mortgage-backed securities (2) 121,277 2,061 6.80% 151,127 2,569 6.80% Investments (2) 132,634 2,126 6.41% 99,786 1,734 6.95% Other interest-earning assets (3) 5,084 87 6.85% 8,876 143 6.44% Cash surrender value of life insurance 6,753 80 4.74% 6,356 77 4.85% ------------------------------ ------------------------------ Total Interest-Earning Assets 923,245 18,420 7.98% 914,557 18,329 8.02% ============================== ============================== INTEREST-BEARING LIABILITIES: Certificates of deposits 378,038 5,425 5.74% 375,705 5,391 5.74% Savings accounts 91,526 621 2.71% 100,734 690 2.74% Demand and NOW accounts 109,213 286 1.05% 103,377 318 1.23% Money market accounts 57,662 595 4.13% 49,925 499 4.00% ------------------------------ ------------------------------ Total deposits 636,439 6,927 4.35% 629,741 6,898 4.38% FHLB advances and other borrowed money 233,968 3,638 6.22% 232,798 3,434 5.90% ------------------------------ ------------------------------ s Total Interest-Bearing Liabilities 870,407 10,565 4.86% 862,539 10,332 4.79% ============================== ============================== Net interest income $7,855 $7,997 ========== =========== Net interest rate spread 3.12% 3.23% ========= ======== Net interest earning assets $52,838 $52,018 =========== =========== Net interest margin (4) 3.40% 3.50% ========= ======== Average interest-earning assets to average interest-bearing liabilities 106.07% 106.03% ========== ===========
(1) Calculated net of deferred loan fees, loan discounts, loans in process and loss reserves (2) Includes held and available for sale categories (3) Includes primarily short term liquid assets (4) Net interest income divided by average interest earning assets (5) Based on average monthly balances WESTERFED FINANCIAL CORPORATION Non-Performing Assets
(Unaudited) September 30, June 30, 1998 1998 - ---------------------------------------------------------------------------------------- (In Thousands) Non-accruing loans: Real Estate: One-to-four family $1,670 $1,967 Multi-family - 89 Nonresidential property (except land) - 35 Construction 227 362 Agriculture - - Commercial - non real estate 103 32 Consumer 1,552 1,504 - ---------------------------------------------------------------------------------------- Total 3,552 3,989 - ---------------------------------------------------------------------------------------- Accruing loans delinquent 90 days or more: Real Estate: One-to-four family 622 442 Multi-family - - Nonresidential property (except land) - - Construction - - Agriculture - - Commercial - non real estate - 10 Consumer 483 174 - ---------------------------------------------------------------------------------------- Total 1,105 626 - ---------------------------------------------------------------------------------------- Foreclosed assets: Real Estate: One-to-four family 302 279 Multi-family - - Commercial - - Land 30 28 Construction - - Consumer 189 114 - ---------------------------------------------------------------------------------------- Total 521 421 - ---------------------------------------------------------------------------------------- Total non-performing assets $5,178 $5,036 ========================================================================================
WESTERFED FINANCIAL CORPORATION Allowance for Loan Losses
(Unaudited) For the Three Month Period Ended September 30, ----------------------------- 1998 1997 ----------------------------- (In Thousands) ------- ------- Balance at beginning of period ............................ $ 4,907 $ 4,651 ------- ------- Charge-Offs: Real Estate: One- to four-family .................................... -- -- Commerical ............................................. -- -- Other: Commerical ............................................. (3) -- Consumer ............................................... (286) (81) ------- ------- Total charge-offs ......................................... (289) (81) ------- ------- Recoveries: Other: Commerical ............................................. -- -- Consumer ............................................... 22 9 ------- ------- Total recoveries .......................................... 22 9 ------- ------- Net charge-offs ........................................... (267) (72) ------- ------- Provisions charged to operations .......................... 240 164 Reserves acquired ......................................... -- -- ------- ------- Balance at end of period .................................. $ 4,880 $ 4,743 ======= ======= Ratio of net charge-offs during the period to average loans outstanding during the period .......................... 0.04% 0.01% ======= ======= Ratio of net charge-offs during the period to average non- performing assets during the period .................... 5.23% 2.22% ======= ======= Ratio of allowance for loan losses to net loans before allowance .............................................. 0.74% 0.72% ======= =======
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