EXHIBIT 99.1
PORTIONS OF ANALYST PRESENTATION
Balance Sheet
($ in thousands)
June 30, 1999 Dec. 31, 1998 Dec. 31, 1997 Dec. 31, 1996
Assets
Cash and equivalents $ 64,034 44,808 40,306 35,717
Securities available for sale 1,000,636 889,251 499,380 370,105
Loans held for sale 84,924 54,188 - -
Debt securities held to maturity - - 66,404 97,307
Mortgage-backed securities held
to maturity - - 163,057 197,940
Loans receivable, net 1,534,293 1,296,702 1,138,253 836,882
Premises and equipment 36,746 39,209 27,062 8,820
Other assets 75,807 71,365 40,428 36,774
--------- --------- --------- ---------
Total assets $2,796,440 2,395,523 1,974,890 1,583,545
========= ========= ========= =========
Liabilities & Equity
Deposits $1,944,791 1,722,710 1,365,012 1,137,788
Borrowed funds 645,969 415,362 441,810 326,433
Other liabilities 41,487 112,600 30,219 19,940
--------- --------- --------- ---------
2,632,247 2,250,672 1,837,041 1,484,161
Capital securities 50,284 24,984 24,984 -
--------- --------- --------- ---------
Total liabilities 2,682,531 2,275,656 1,862,025 1,484,161
Total equity 113,909 119,867 112,865 99,384
--------- --------- --------- ---------
Total Liabilities and Equity $2,796,440 2,395,523 1,974,890 1,583,545
========= ========= ========= =========
INCOME STATEMENT
($ in thousands)
Six Months Ended Six Months Ended Six Months Ended
June 30, 1999 December 31, 1998 June 30, 1998
---------------- ----------------- ----------------
Interest income $ 84,716 79,990 71,695
Interest expense 50,590 49,725 44,051
------ ------ ------
Net interest income before provision 34,126 30,265 27,644
Provision for loan losses 1,555 1,345 1,320
------ ------ ------
Net interest income after provision 32,571 28,920 26,324
------ ------ ------
Non interest income
Mortgage banking income (loss) 2,945 3,270 (270)
Savings/checking fees 6,964 5,692 4,130
Insurance, annuity and mutual fund fees 4,143 3,373 2,501
Other 3,774 4,645 2,504
------ ------ ------
Total non interest income 17,826 16,980 8,865
------ ------ ------
Non interest expense
Compensation and benefits 21,967 20,001 16,934
Occupancy and equipment 6,783 6,405 4,600
Other 12,105 13,336 8,737
------ ------ ------
Total non interest expense 40,855 39,742 30,271
------ ------ ------
Income before taxes 9,542 6,158 4,918
Income tax expense 3,614 1,388 1,538
------ ------ ------
Net income $5,928 $4,770 $3,380
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Net income per common share: Basic $ 0.68 $ 0.55 $ 0.40
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Diluted $ 0.66 $ 0.52 $ 0.37
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CFS MORTGAGE
Purchased Intercounty Mortgage on May 1, 1998.
Offices in New York, New Jersey, Connecticut and Pennsylvania.
Originates residential mortgage loans that are held for sale or for
portfolio.
CFS MORTGAGE ORIGINATIONS
($ in Millions)
9/98 Q 12/98 Q 3/99 Q 6/99 Q
------ ------- ------ ------
Held for sale $213.0 $204.9 $160.7 $167.9
Portfolio 141.0 119.7 132.1 126.6
CFS MORTGAGE
Through June 1999 reported P&L impact of approximately $3.0 million
loss pre-tax
Market factors
Investment in building processing system & front end system
30% drop in held for sale volume
Accounting issues - FASB 91
Action steps
Management restructuring
Improved secondary market execution
Focus on technology enhancement and operating efficiencies
Portfolio production has value - $258.7 million YTD 1999
NON-INTEREST INCOME
($ in Millions)
1996 1997 1998 6/98* 6/99*
Non-Interest Income $ 9 $14 $20 $ 9 $13
Percent of Total Revenue 16% 21% 26% 24% 28%
* 6 months
% = Total non-interest income divided by (non-interest income + net
interest income)
Non-interest income = Banking fees, investments and insurance
sales. Excludes mortgage banking income and gains on sales.
CFS INVESTMENTS
Annuities, mutual funds and insurance for life, health, disability
and long-term health care.
Provides a competitive product line, convenient locations,
accommodating hours and knowledgeable sales people.
Licensed securities represntative at each location.
Standing within the industry.
Significant cross-selling potential.
CFS INSURANCE AGENCY
Acquired in November 1998.
Provides automobile, homeowners, casualty insurance, and various
lines of commercial insurance.
Natural cross sales opportunities with CFS Bank and CFS Mortgage
customers.
$6 million existing premiums per year and generated $3.2 million in
new premiums through 6/99.
<PAGAE>
TRADITIONAL BRANCHES
8 Branches
June 30, 1999
Number % of Total
of Accounts Balance Deposits
Deposits 172,128 $1,227.5 billion
Checking 69,038 $155.7 million 12.7%
Savings & Money Market 60,453 $403.7 million 32.9%
Certificates 42,637 $668.1 million 54.4%
Cost of deposits 3.79%
Fee income contribution $4.2 million*
*YTD 6/99
SUPERMARKET BANKING
One stop shopping for investment, mortgage, and insurance.
Provides the opportunity to interact with 30,000 customers per
week, per location.
Creating a sales culture in supermarket banking.
Developing strong customer relationships.
SUPERMARKET BRANCHES
60 Branches
June 30, 1999
% of Total
Number Supermarket
of Accounts Balance Deposits
Deposits 186,012 $700.4 million
Checking 104,444 $ 80.4 million 11.5%
Savings & Money Market 62,741 $303.2 million 43.3%
Certificates 18,827 $316.1 million 45.2%
Cost of deposits 4.35%
Fee income contribution $7.3 million*
*YTD 6/99
SUPERMARKET BRANCHES - PROFITABILITY
Achieved profitability in the second quarter 1999.
Approximately $500,000 pre-tax income second quarter 1999.
In 1999 deposits have grown by approximately $30 million per month.
In 1999 fee income has grown by approximately $50,000 per month.
Branch operating costs average approximately $40,000 per month.
MATURATION PROCESS
20 locations open over 24 months (all profitable) with average
$38,000 income per month.
19 locations open between 15 - 24 months (9 profitable)
49% of total branch locations profitable.
DISCUSSION OF MATURATION OF REMAINING BRANCHES
FUTURE POTENTIAL
61 Supermarket Branches
($ in Millions)
Monthly Pre-Tax Income
6/99 12/99 6/00 12/00 12/01
---- ----- ---- ----- -----
$10 million per month
deposit growth, $10,000
per month growth in
fee income $0.5 $0.7 $0.9 $1.1 $1.5
$20 million per month
deposit growth, $25,000
per month growth in
fee income 0.5 0.9 1.3 1.7 2.6
$25 million per month
deposit growth, $40,000
per month growth in
fee income 0.5 1.0 1.6 2.2 3.3
SUPERMARKET DEPOSIT POTENTIAL
($ in Billions)
Dollars of Deposits
6/99 12/99 6/00 12/00 12/01
---- ----- ---- ----- -----
$10 million per month
deposit growth $0.7 $0.76 $0.82 $0.88 $1.00
$20 million per month
deposit growth 0.7 0.82 0.94 1.06 1.30
$25 million per month
deposit growth 0.7 0.85 1.00 1.15 1.45
TOTAL ASSETS
($ in Millions)
12/96 12/97 12/98 6/99
Total Assets $1,584 $1,975 $2,396 $2,796
COMPOSITION OF ASSETS
June 30, 1999 December 31, 1998 December 31, 1997
Loans, net 57.9% 56.4% 57.6%
Other 4.0 4.7 2.8
Cash and equivalents 2.3 1.8 2.0
Securities available for sale 35.8 37.1 25.3
Securities, held to maturity - - 11.6
TOTAL LOANS, NET
($ in Millions)
12/96 12/97 12/98* 6/99*
Total loans, net $ 837 $1,138 $1,351 $1,619
* Includes loans held for sale
LOAN PORTFOLIO
June 30, 1999 December 31, 1998 December 31, 1997
------------- ----------------- -----------------
One to Four Family 71.7% 67.9% 69.9%
Multi-Family 15.8 16.5 12.5
Commercial 10.3 12.5 12.9
Other 2.2 3.1 4.7
Other includes: Cooperative, Construction and Land, HELOCs, Home
Improvement and Other
ASSET QUALITY
12/96 12/97 12/98 6/99
% NPA + Lns 90/Assets 1.17% 0.66% 0.36% 0.30%
% Reserves/NPA+Lns 90 0.71% 0.96% 1.62% 1.56%
DEPOSITS
($ in Millions)
12/96 12/97 12/98 6/99
Deposits $1,138 $1,365 $1,723 $1,945
TOTALS DEPOSITS
June 30, 1999 December 31, 1998 December 31, 1997
------------- ----------------- -----------------
CDs 50.7% 52.3% 57.3%
Checking 12.8 12.5 11.3
Savings 33.6 31.8 27.7
Money Market 2.9 3.4 3.7
EQUITY CAPITAL
($ in Millions)
12/96 12/97 12/98 6/99
Total Equity $99.4 $113.0 $120.0 $114.0
% Core Capital to Assets 6.14% 6.42% 5.66% 5.71%
INCOME STATEMENT
($ in Thousands)
December 31, 1998 December 31, 1997 December 31, 1996
----------------- ----------------- -----------------
Interest income $ 151,685 126,306 109,253
Interest expense 93,776 74,400 61,368
------ ------ ------
Net interest income before provision 57,909 51,906 47,885
Provision for loan losses 2,665 2,750 3,125
------ ------ ------
Net interest income after provision 55,244 49,156 44,760
------ ------ ------
Non interest income
Mortgage banking income 3,000 - -
Savings/checking fees 9,822 5,478 3,378
Insurance, annuity and mutual fund fees 5,874 3,758 3,114
Other 7,149 4,676 3,062
------ ------ ------
Total non interest income 25,845 13,912 9,554
------ ------ ------
Non interest expense
Compensation and benefits 36,935 24,251 15,737
Occupancy and equipment 11,005 6,334 3,478
Other 22,073 15,262 19,240
------ ------ ------
Total non interest expense 70,013 45,847 38,455
------ ------ ------
Income before taxes 11,076 17,221 15,859
Income tax expense 2,926 6,138 6,434
------ ------ ------
Net income $8,150 $11,083 $9,425
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Net income per common share: Basic $ 0.95 $ 1.32 $ 1.13
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Diluted $ 0.89 $ 1.24 $ 1.08
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