EXHIBIT 99.1
PORTIONS OF ANALYST PRESENTATION
Balance Sheet
($ in thousands)
Sept. 30, 1999 Dec. 31, 1998 Dec. 31, 1997 Dec. 31, 1996
Assets
Cash and equivalents $ 56,165 44,808 40,306 35,717
Securities available for sale 992,768 889,251 499,380 370,105
Loans held for sale 53,976 54,188 - -
Debt securities held to maturity - - 66,404 97,307
Mortgage-backed securities held
to maturity - - 163,057 197,940
Loans receivable, net 1,721,002 1,296,702 1,138,253 836,882
Premises and equipment 36,290 39,209 27,062 8,820
Other assets 81,639 71,365 40,428 36,774
--------- --------- --------- ---------
Total assets $2,941,840 2,395,523 1,974,890 1,583,545
========= ========= ========= =========
Liabilities & Equity
Deposits $2,015,509 1,722,710 1,365,012 1,137,788
Borrowed funds 726,686 415,362 441,810 326,433
Other liabilities 38,397 112,600 30,219 19,940
--------- --------- --------- ---------
2,780,592 2,250,672 1,837,041 1,484,161
Capital securities 50,284 24,984 24,984 -
--------- --------- --------- ---------
Total liabilities 2,830,876 2,275,656 1,862,025 1,484,161
Total equity 110,964 119,867 112,865 99,384
--------- --------- --------- ---------
Total Liabilities and Equity $2,941,840 2,395,523 1,974,890 1,583,545
========= ========= ========= =========
INCOME STATEMENT
($ in thousands)
Three Months Ended Three Months Ended Three Months Ended
Sept. 30, 1999 June 30, 1999 March 31, 1999
---------------- ----------------- ----------------
Interest income $ 48,478 44,236 40,480
Interest expense 29,926 26,316 24,274
------ ------ ------
Net interest income before provision 18,552 17,920 16,206
Provision for loan losses 1,035 880 675
------ ------ ------
Net interest income after provision 17,517 17,040 15,531
------ ------ ------
Non interest income
Mortgage banking income 97 677 2,268
Savings/checking fees 4,327 3,839 3,125
Insurance, annuity and mutual fund fees 2,231 2,168 1,975
Other 1,460 2,344 1,430
------ ------ ------
Total non interest income 8,115 9,028 8,798
------ ------ ------
Non interest expense
Compensation and benefits 10,917 10,927 11,040
Occupancy and equipment 3,482 3,439 3,344
Other 6,393 6,363 5,742
------ ------ ------
Total non interest expense 20,792 20,729 20,126
------ ------ ------
Income before taxes 4,840 5,339 4,203
Income tax expense 1,890 2,011 1,603
------ ------ ------
Net income $2,950 $3,328 $2,600
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EPS: Basic $ 0.34 $ 0.38 $ 0.30
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Diluted $ 0.32 $ 0.37 $ 0.29
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CFS MORTGAGE
Purchased Intercounty Mortgage on May 1, 1998.
Offices in New York, New Jersey, Connecticut and Pennsylvania.
Originates residential held for sale and portfolio mortgages.
CFS MORTGAGE ORIGINATIONS
($ in Millions)
12/98 Q 3/99 Q 6/99 Q 9/99 Q
------ ------- ------ ------
Held for sale $204.9 $160.7 $148.4 $153.3
Portfolio 119.7 132.1 146.1 203.3
CFS MORTGAGE
P&L impact of approximately $5.5 million pre-tax loss through
9/30/99
Market factors
Investment in building processing system & front end system
30% drop in held for sale volume
Accounting issues - FASB 91
Evaluating options
Portfolio production of $481.5 million YTD 1999 has future value
NON-INTEREST INCOME
($ in Millions)
1996 1997 1998 9/98* 9/99*
Non-Interest Income $ 9 $14 $20 $14 $21
Percent of Total Revenue 16% 21% 26% 26% 30%
* 9 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/INSURANCE
Annuities, mutual funds and a wide array of insurance products.
Provides a competitive product line, convenient location,
accommodating hours and knowledgeable sales people.
Licensed securities representative at each location.
Leader in the industry.
Significant cross-selling potential.
TRADITIONAL BRANCHES
8 Branches
September 30, 1999
Number % of Total
of Accounts Balance Deposits
Deposits 171,754 $1,219.8 billion
Checking 69,485 $151.0 million 12.4%
Savings & Money Market 59,809 $394.9 million 32.4%
Certificates 42,460 $673.9 million 55.2%
Cost of deposits 3.86%
Fee income contribution $6.6 million*
*YTD 9/99
SUPERMARKET BANKING
Convenient one stop shopping for banking, investment, mortgage, and
insurance products.
Provides the opportunity to interact with up to 30,000 customers
per week, per location.
Creating a sales culture in supermarket banking.
Developing strong customer relationships.
SUPERMARKET BRANCHES
61 Branches
September 30, 1999
% of Total
Number Supermarket
of Accounts Balance Deposits
Deposits 205,039 $778.1 million
Checking 116,588 $ 86.2 million 11.1%
Savings & Money Market 65,824 $299.8 million 38.5%
Certificates 22,627 $392.2 million 50.4%
Cost of deposits 4.41%
Fee income contribution $11.9 million*
*YTD 9/99
SUPERMARKET BRANCHES - PROFITABILITY
Approximately $600,000 pre-tax income third 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 $49,000 per month.
FUTURE POTENTIAL
61 Supermarket Branches
($ in Millions)
Monthly Pre-Tax Income
At the end of the period 9/99 12/99 6/00 12/00 12/01
---- ----- ---- ----- -----
$10 million per month
deposit growth, $10,000
per month growth in
fee income $0.25 $0.3 $0.4 $0.6 $0.9
$20 million per month
deposit growth, $25,000
per month growth in
fee income 0.25 0.5 0.7 1.2 2.0
$25 million per month
deposit growth, $40,000
per month growth in
fee income 0.25 0.6 0.9 1.6 2.7
SUPERMARKET DEPOSIT POTENTIAL
($ in Billions)
Dollars of Deposits
At the end of the period 9/99 12/99 6/00 12/00 12/01
---- ----- ---- ----- -----
$10 million per month
deposit growth $0.8 $0.81 $0.87 $0.93 $1.05
$20 million per month
deposit growth 0.8 0.84 0.96 1.10 1.33
$25 million per month
deposit growth 0.8 0.85 1.00 1.18 1.48
TOTAL ASSETS
($ in Millions)
12/96 12/97 12/98 9/99
Total Assets $1,584 $1,975 $2,396 $2,942
COMPOSITION OF ASSETS
September 30, 1999 December 31, 1998 December 31, 1997
Loans, net 60.3% 56.4% 57.6%
Other 4.1 4.7 2.8
Cash and equivalents 1.9 1.8 2.0
Securities available for sale 33.7 37.1 25.3
Securities, held to maturity - - 11.6
TOTAL LOANS, NET
($ in Millions)
12/96 12/97 12/98* 9/99*
Total loans, net $ 837 $1,138 $1,351 $1,775
* Includes loans held for sale
LOAN PORTFOLIO
September 30, 1999 December 31, 1998 December 31, 1997
------------------ ----------------- -----------------
One to Four Family 73.8% 67.9% 69.9%
Multi-Family 14.6 16.5 12.5
Commercial 10.1 12.5 12.9
Other 1.5 3.1 4.7
Other includes: Cooperative, Construction and Land, HELOCs, Home
Improvement and Other
ASSET QUALITY
12/96 12/97 12/98 9/99
% NPA + Lns 90/Assets 1.17% 0.66% 0.36% 0.30%
% Reserves/NPA+Lns 90 0.71% 0.96% 1.62% 1.81%
DEPOSITS
($ in Millions)
12/96 12/97 12/98 9/99
Deposits $1,138 $1,365 $1,723 $2,016
TOTALS DEPOSITS
September 30, 1999 December 31, 1998 December 31, 1997
------------------ ----------------- -----------------
CDs 51.1% 52.3% 57.3%
Checking 15.4 12.5 11.3
Savings 31.6 31.8 27.7
Money Market 1.9 3.4 3.7
EQUITY CAPITAL
($ in Millions)
12/96 12/97 12/98 9/99
Total Equity $99.4 $113.0 $120.0 $111.0
% Core Capital to Assets 6.14% 6.42% 5.66% 5.54%
INCOME STATEMENT
($ 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
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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
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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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