Exhibit 99.1
INCOME STATEMENT
Three Months Ended Three Months Ended Three Months Ended Three Months Ended Three Months Ended
($ IN THOUSANDS) March 31, 2000 December 31, 1999 September 30, 1999 June 30, 1999 March 31, 1999
Interest income $51,737 50,669 48,478 44,236 40,480
Interest expense 32,145 32,390 29,926 26,316 24,274
Net interest income before provision 19,592 18,279 18,552 17,920 16,206
Provision for loan losses 565 1,035 1,035 880 675
Net interest income after provision 19,027 17,244 17,517 17,040 15,531
Non interest income
Mortgage banking income 1,084 692 97 677 2,268
Retail banking fees 4,866 4,634 4,472 3,865 3,079
Insurance, annuity and mutual fund fees 2,169 1,885 2,231 2,168 1,975
Other 484 566 809 1,838 975
Total non interest income 8,603 7,777 7,609 8,548 8,297
Non interest expense
Compensation and benefits 11,037 11,803 10,917 10,927 11,040
Occupancy and equipment 3,609 2,723 3,482 3,439 3,344
Restructuring charge 7,057 - - - -
Other 5,772 5,407 5,887 5,883 5,241
Total non interest expense 27,475 19,933 20,286 20,249 19,625
Income before taxes 155 5,088 4,840 5,339 4,203
Income tax expense 54 1,359 1,890 2,011 1,603
Net income $ 101 3,729 2,950 3,328 2,600
EPS: Basic $0.01 0.42 0.34 0.38 0.30
Diluted $0.01 0.40 0.32 0.37 0.29
EPS without restructuring charges:
Basic $0.53
Diluted $0.51
Note: Certain reclassifications have been made to prior period
amounts to conform to the current period.
BALANCE SHEET
(In thousands) March 31, 2000 December 31, 1999 December 31, 1998 December 31, 1997
Assets
Cash and equivalents $ 57,844 42,717 44,808 40,306
Securities available for sale 943,435 937,299 889,251 499,380
Loans held for sale 49,384 82,709 54,188 -
Debt securities held to maturity - - - 66,404
Mortgage-backed securities
held to maturity - - - 163,057
Loans receivable, net 1,805,182 1,790,126 1,296,702 1,138,253
Premises and equipment 35,002 35,928 39,209 27,062
Other assets 75,065 77,071 71,365 40,428
Total assets $2,965,912 2,965,850 2,395,523 1,974,890
Liabilities and Equity
Deposits $2,150,944 2,080,613 1,722,710 1,365,012
Borrowed funds 630,703 698,948 415,362 441,810
Other liabilities 31,240 30,422 112,600 30,219
2,812,887 2,809,983 2,250,672 1,837,041
Capital securities 50,284 50,284 24,984 24,984
Total liabilities 2,863,171 2,860,267 2,275,656 1,862,025
Total equity 102,741 105,583 119,867 112,865
Total Liabilities and Equity $2,965,912 2,965,850 2,395,523 1,974,890
SIGNIFICANT EVENTS
- - Residential Mortgage Division
Sale of parts
M&T Mortgage Corp. - All but Fishkill, NY
Proposed sale of Fishkill, NY - Target closing: May 1, 2000
- - Reduce operating expenses through reduction in workforce and
elimination of other discretionary expenses.
- - Board expansion ! Richard Lashley/Garrett Goodbody
MORTGAGE BANKING
Return to Profitability
- - Continue to service customers with private label mortgage
product.
- - Purchase agreement with M&T Mortgage Corp. gives Haven option to
buy mortgage product for portfolio.
- - Portfolio consists primarily of the following:
MBS Fixed and Adjustable 56%
Residential 1-4 family Mortgage Loans 22%
Multifamily* 10%
Commercial* 12%
100%
* Projected 2000 commercial/multi-family originations $175
million.
MORTGAGE BANKING
1999 direct expenses, net of capitalized
origination costs $11.1 million
2000 projected direct expenses, net of
capitalized origination costs 3.7 million*
----
2000 expected cost savings 7.4 million
====
* Direct expenses in 1Q 2000, net of capitalized origination costs
were $2.2 million.
MORTGAGE BANKING
Financial Impact
Pre-Restructuring Post-Restructuring*
Pre-tax Net Income:
1st Quarter 2000 ($1,100,000) ($150,000)
Incremental Profitability $950,000
Profitability 86%
Improvement
After tax annual value $2,500,000
$0.27/share
* Represents quarterly run rate after restructuring is complete.
Operating Expenses Reduction
Operating Salary
Expense and Employee
Reductions Benefits Change
FY 2000 $1,500,000 $5,000,000 -140
After tax annual value $4,225,000
$0.46/share
- - Elimination of 70 FTEs on 3/31/00
- - Remainder through attrition and hiring freeze
- - Headcount at 12/31/99 985
Headcount at 3/31/00 765
---
Reduction 220
===
RETAIL BANKING STRATEGY
- - Liability Management
- - Customer penetration
- - Cost Control
In-Store Performance Analysis ($ in Thousands)
3Q ' 99 4Q '99 1Q '00
Net interest income $4,990 $5,277 $5,539
Fee income 4,614 4,434 4,659
Operating expenses
(including allocated overhead) 9,001 9,036 9,184
Pre-tax income $ 603 $ 675 $1,014
# of branches 61 63 62
Liability balance $778,144 $842,333 $898,532
Cost of deposits 4.41% 4.49% 4.45%
# of checking accounts 116,588 123,154 128,972
# of savings accounts 65,824 67,892 72,158
In-Store Performance Analysis ($ in Thousands)
2Q '00 3Q '00 4Q '00
Projected Projected Projected
Fee income $5,750 6,450 6,900
# of checking accounts 140,500 151,000 161,500
# of savings accounts 71,050 72,940 74,830
Many CEO's of other leading thrifts also believe that supermarket
banking enhances the value of their franchise
TCF Financial ! William A. Cooper, Chairman & CEO
"Our emerging (supermarket banking business has) started to make
significant contributions and will be an engine of growth in future
years. These branches produced 76% of the checking account growth
in 1999. Consumer loans originated in supermarket branches now
total $192.9 million, a growth rate of 78% this year."
People's Bank ! John A. Klein, President & CEO
"The supermarket offices saw substantial growth, with deposits up
24% since year-end 1998 ... (and) is designed to capitalize on the
continuing shifts in the competitive landscape in Connecticut."
Bank United ! Barry Burkholder, Chairman, President & CEO
"The new in-store, 'seven-day' banking centers have given the
Company the opportunity to significantly increase our presence in
these growing markets faster and for much less cost than building
traditional de novo branches. Additionally, these branches benefit
from high consumer traffic ..."
Charter One ! Charles J. Koch, Chairman & CEO
"Our supermarket strategy is a natural complement to the
alternative delivery channels for banking that we have already
established for our growing customer base ! namely ATM, debit card
and home banking access.