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F.F.O FINANCIAL GROUP, INC. ANNOUNCES AGREEMENT FOR CAPITAL INFUSION AND ADDITIONAL PROVISION FOR LOAN LOSSES

 ST. CLOUD, Fla., Sept. 22 /PRNewswire/ -- F.F.O. Financial Group, Inc. (NASDAQ: FFFG) announced that it has entered into a definitive stock purchase agreement with Florida businessman William R. Hough, providing for Hough to purchase 5 million shares of the company's common stock at a cash purchase price of $1.10 per share, or an aggregate of $5,500,000. The transaction, which is subject to prior approval by the Office of Thrift Supervision (OTS) and certain other conditions to closing, is presently scheduled to be completed on Sept. 27, 1993. The net proceeds of the sale will be invested in the capital of the company's wholly owned savings and loan association subsidiary, First Federal Savings and Loan Association of Osceola County, which will return the Association to compliance with all of its regulatory capital requirements. As a result of this transaction, Hough will beneficially own approximately 68.4 percent of the outstanding shares of common stock of the company on a fully diluted basis.
 The company also announced that it will record a special $1.0 million provision for loan losses during the quarter ending Sept. 30, 1993. The provision, which will be used to increase the Association's general valuation allowances, is being required by the OTS based upon a joint examination of the Association by the OTS and the Federal Deposit Insurance Corporation. In light of this special provision, the company presently expects to report a loss of approximately $925,000 for the quarter ending Sept. 30, 1993, and a loss of approximately $191,000 for the nine months ending on that date.
 The stock purchase agreement with Hough also provides that the company will conduct a rights offering of an additional 1,250,000 shares of the company's common stock to all stockholders of the company, including Hough, at a purchase price of not less than $1.10 per share. This subsequent rights offering is expected to occur in the latter part of 1993 or the first half of 1994, and is subject to stockholder approval of an increase in the number of authorized shares which will be necessary to complete the offering. Hough has agreed to purchase his pro rata interest in the rights offering as well as any unsubscribed shares remaining upon completion of the offering. The net proceeds of the rights offering will also be invested in the capital of the Association.
 Under the terms of the stock purchase agreement, Hough and Alfred T. May will join the board of directors of the company and the Association. Hough is chairman and principal shareholder of William R. Hough & Co., a municipal securities firm headquartered in St. Petersburg, Fla. May is a former thrift executive with over 30 years of experience in the industry.
 The company stated that trading in the company's common stock will be transferred from the NASDAQ National Market System to the NASDAQ "small-cap" market.
 James B. Davis, chairman of the board, president and chief executive officer of the company and the Association stated, "We are very pleased that our efforts to recapitalize the Association have been successful. This transaction will return the Association to compliance with all of its regulatory capital requirements and will permit us to continue to provide quality service to our customers. We are especially delighted to have the expertise and knowledge that Bill Hough and Al May will bring to the company and the Association."
 -0- 9/22/93
 /CONTACT: James B. Davis, chief executive officer of F.F.O. Financial Group, Inc., 407-957-7401/
 (FFFG)


CO: F.F.O. Financial Group, Inc. ST: Florida IN: FIN SU:

AW-PC -- FL011 -- 4911 09/22/93 17:35 EDT
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Publication:PR Newswire
Date:Sep 22, 1993
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