Exhibit 99.1
PRESS RELEASE
Contact: Donald Fleming
July 17, 2002 Contact No. (718) 556-6517
ANNOUNCEMENT: STATEN ISLAND BANCORP, INC. REPORTS 52% INCREASE IN CORE
DILUTED EARNINGS PER SHARE IN SECOND QUARTER 2002.
STATEN ISLAND, NEW YORK -Staten Island Bancorp, Inc. (NYSE: SIB) (the
"Company"), the holding company for SI Bank & Trust (the "Bank"), reported net
income of $17.6 million or $0.31 per diluted share for the quarter ended June
30, 2002 compared to net income of $15.2 million or $0.25 per diluted share for
the quarter ended June 30, 2001. This represents an increase of 24.0% in diluted
earnings per share for the quarter. For the six months ended June 30, 2002, the
Company reported net income of $39.6 million or $0.69 per diluted share compared
to $29.2 million or $0.47 per diluted share for the six months ended June 30,
2001, representing an increase of 46.8% on a diluted share basis. Cash earnings
per diluted share were $0.35 and $0.76, respectively, for the quarter and six
months ended June 30, 2002 representing an increase of 16.7% and 33.3%,
respectively, when compared to cash earnings per diluted share of $0.30 and
$0.57, respectively, for the quarter and six months ended June 30, 2001. The
Company's cash earnings per diluted share are determined by adding back to
reported net income the non-cash expenses related to the allocation of the
Company's Common Stock under its Employee Stock Ownership Plan ("ESOP") and the
earned portion of the Company's Recognition and Retention Plan ("RRP") stock,
net of respective tax benefits.
Core earnings per diluted share were $0.38 and $0.76, respectively, for the
quarter and six months ended June 30, 2002. This represents increases of 52.0%
and 61.7%, respectively, when compared to core earnings per diluted share of
$0.25 and $0.47, respectively, for the quarter and six months ended June 30,
2001. Core earnings exclude net securities losses of $6.8 million and $7.2
million, respectively, for the quarter and six months ended June 30, 2002,
comprised primarily of impairment charges taken in the quarter ended June 30,
2002 on certain collateral bond obligations. Core earnings for the quarter and
six months ended June 30, 2001 exclude security gains of $9,000 and $3,000,
respectively.
Commenting on the second quarter results Chairman and Chief Executive
Officer, Harry P. Doherty, stated "We are pleased to report another quarter of
strong core operating results. The Company continues to benefit from the
strength of a favorable mortgage market and interest rate environment that has
enabled us to capitalize on our core retail banking and mortgage banking
business strategies. We have continued to enjoy strong loan origination volume
at Ivy Mortgage and the Bank, as well as impressive growth in our deposits.
Overall deposit growth and particularly core deposit growth has certainly been
impressive as we continue to expand our retail franchise with the opening of two
additional New Jersey branches during the quarter. In addition, we continue to
seek branching opportunities in new markets. The quarter's results were
particularly gratifying in light of our increase in the provision for loan
losses and the write-downs we previously announced. We continue to believe our
overall credit quality remains strong. We remain confident that the continuing
development of our core business strengths will be the basis for enhanced
shareholder value."
Financial Highlights
- --------------------
o Net interest income increased $14.3 million or 37.0% to $52.9 million for
the quarter ended June 30, 2002 compared to $38.6 million for the similar
prior-year period. This increase in net interest income is reflective of
the current favorable interest rate environment and was driven primarily by
continued lower funding costs and growth of the Company's earning asset
base. The Company's net interest rate spreads and margins continued to
improve on both a prior year comparative and linked quarter basis. The
Company's net interest rate spread and margin were 3.19% and 3.59%,
respectively, for the second quarter of 2002 compared to 2.38% and 2.99%,
respectively, for the second quarter of 2001 and 2.96% and 3.42%,
respectively, for the first quarter of 2002.
o The mortgage banking business conducted by the Company's subsidiary SIB
Mortgage Corp., d/b/a/ Ivy Mortgage, continued its solid performance as it
originated a record of $1.5 billion in total loans in the second quarter of
2002 compared to $1.0 billion for the same period one year ago. Primarily
as a result of this increase, net gains on loan sales and loan fees were
$40.9 million for the quarter ended June 30, 2002 compared to $21.6 million
for the quarter ended June 30, 2001. For the quarter ended June 30, 2002,
the mortgage banking subsidiary contributed net income of $4.2 million or
$0.07 on a fully diluted share basis. In the current interest rate
environment, origination volume continues to remain strong and it is
anticipated that the mortgage banking subsidiary will originate $1.8
billion in loans during the third quarter of 2002.
o Reflecting the strength of the Bank's retail franchise, total deposits
increased $178.0 million or 5.7% for the quarter ended June 30, 2002. For
the six months ended June 30, 2002, total deposits have increased $372.7
million or 12.8%. The Bank continued its branch expansion plans and opened
two new branches in New Jersey in the current quarter. Core deposits, which
consist of Savings, NOW, DDA and Money Market accounts continued to
increase and comprised 66.1% of the total deposit base at June 30, 2002.
o The Bank's core lending business also showed continued strength with $386.4
million in loan originations for the quarter ended June 30, 2002,
representing an increase of $161.9 million over the $224.5 million in loans
originated in the first quarter of 2002.
o As part of its capital management strategy, the Company repurchased 1.2
million shares of Common Stock and completed its eighth stock repurchase
program.
o Core average returns on equity were 15.6% and 15.8%, respectively, for the
quarter and six months ended June 30, 2002.
o Service and fee income increased by $3.8 million to $8.5 million for the
quarter ended June 30, 2002 when compared to the second quarter of last
year. The increase was primarily the result of the receipt of a $3.0
million liquidating dividend from the investment in the Company's former
data processing provider and higher banking fees reflecting the expansion
of the Bank's retail branching network.
o Total other expenses increased $23.1 million to $61.9 million for the
second quarter of 2002, when compared to the second quarter of 2001. The
increase was primarily due to an increase of $5.6 million in personnel
costs, an $11.3 million increase in commission expense, a $2.2 million
increase in professional fees and a $3.8 million increase in other
expenses. Of the increase in personnel costs, $4.2 million was due to the
continued growth of the mortgage banking subsidiary, $600,000 was due to
the non-cash charge to ESOP expense reflecting the Company's generally
higher stock price compared to last year and $800,000 was due to branch
expansion, incentives and normal merit increases at the Bank. The increase
in commissions and other expenses primarily reflect the growth of the
mortgage banking subsidiary. The increase in professional fees is primarily
due to the hiring of contract workers at the mortgage banking subsidiary in
response to the increased origination volumes.
o As previously reported, the Company recorded a $7.4 million impairment
charge in the quarter ended June 30, 2002 relating to investments in two
asset-backed securities included in the Company's investment portfolio with
an aggregate carrying value of $9.5 million prior to the impairment charge.
Asset Quality
- -------------
Total non-accruing loans and other real estate owned ("OREO") decreased by
$3.8 million to $25.2 million at June 30, 2002, from $29.0 million at March 31,
2002. Of the $25.2 million at June 30, 2002, $16.6 million consisted of
non-accruing loans and $8.6 million consisted of OREO, compared to $27.3 million
of non-accruing loans and $1.7 million of OREO at March 31, 2002. Of this
decrease, $1.4 million was due to charge-offs on loans transferred to OREO at
net realizable value. During the quarter, the Company had $3.2 million in net
loan charge-offs compared to $373,000 in net loan charge-offs in the prior
quarter ended March 31, 2002. The net charge-offs in the current quarter
consisted primarily of the $1.4 million described above and $1.6 million
relating to the sale of $5.3 million of loans by the mortgage banking subsidiary
that did not meet secondary market standards.
Because of this increased level of net charge-offs, current economic
conditions and increased origination volumes at both the Bank and the mortgage
banking subsidiary, management deemed it prudent to make a $5.0 million
provision for loan losses for the second quarter of 2002. The allowance for loan
losses was $22.9 million or 137.7% of non-accruing loans at June 30, 2002
compared to $21.2 million or 77.7% of non-accruing loans at March 31, 2002 and
$14.8 million or 134.6% of non-accruing loans at June 30, 2001. While no
assurance can be given that future charge-offs or additional provisions will not
be necessary, management believes that based on current review and the level of
non-accruing loans and delinquencies, the current allowance for loan losses is
adequate.
In July 2002, the Company entered into an agreement for the sale of a
previously reported non-performing loan with a carrying value of $2.5 million
and secured by a land development and construction project for single family
homes in the state of Florida. The Company expects to close on this transaction
in the third quarter of 2002 with no material loss.
* * *
"Safe Harbor" Statement under the Private Securities Litigation Reform Act
of 1995: Statements in this Press Release relating to plans, strategies,
economic performance and trends, projections of results of specific activities
or investments and other statements that are not descriptions of historical
facts may be forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of
1933 and Section 21E of The Securities Exchange Act of 1934. Forward-looking
information is inherently subject to risks and uncertainties, and actual results
could differ materially from those currently anticipated due to a number of
factors, which include, but are not limited to, factors discussed in the
Company's Annual Report on Form 10-K and in other documents filed by the Company
with The Securities and Exchange Commission from time to time. Forward-looking
statements may be identified by terms such are "may", "will", "should", "could",
"expects", "plans", "intends", "anticipates", "believes", "estimates",
"predicts", "forecasts", "potential", or "continue" or similar terms or the
negative of these terms. Although we believe that the expectations reflected in
the forward-looking statements are reasonable, we cannot guarantee future
results, levels of activity, performance or achievements. The Company has no
obligation to update these forward-looking statements.
* * *
Staten Island Bancorp, Inc. is the holding company for SI Bank & Trust. SI
Bank & Trust was chartered in 1864 and currently operates 17 full service
branches and three limited service branches on Staten Island, New York, and two
full service branches in Brooklyn, New York; and 15 full service branches in New
Jersey. SI Bank & Trust also operates SIB Mortgage Corp., a wholly owned
subsidiary of SI Bank & Trust, which conducts business under the name of Ivy
Mortgage and has offices in 42 states. On June 30, 2002, Staten Island Bancorp
had $6.4 billion in total assets and $557.3 million of total stockholders'
equity.
CONSOLIDATED STATEMENTS OF INCOME (unaudited)
For the Three Months Ended June 30, For the Six Months Ended June 30,
------------------------------------------- -------------------------------------------
Increase Increase
2002 2001 (Decrease) 2002 2001 (Decrease)
------------------------------------------- -------------------------------------------
(000's omitted, except per share and share data)
Interest Income:
Loans ..................................... $ 75,755 $ 64,382 $ 11,373 $ 145,638 $ 123,831 $ 21,807
Securities, available for sale ............ 24,016 28,068 (4,052) 47,841 58,918 (11,077)
Federal funds sold ........................ 189 254 (65) 698 633 65
------------ ------------ ------------ ------------ ------------ ------------
Total interest income .................. 99,960 92,704 7,256 194,177 183,382 10,795
------------ ------------ ------------ ------------ ------------ ------------
Interest Expense:
Savings and escrow ........................ 4,918 4,516 402 9,401 8,877 524
Certificates of deposits .................. 9,811 14,206 (4,395) 20,157 28,136 (7,979)
Money market and NOW ...................... 3,985 2,381 1,604 7,342 4,128 3,214
Borrowed funds ............................ 28,379 33,021 (4,642) 56,519 67,822 (11,303)
------------ ------------ ------------ ------------ ------------ ------------
Total interest expense ................. 47,093 54,124 (7,031) 93,419 108,963 (15,544)
------------ ------------ ------------ ------------ ------------ ------------
Net interest income .................... 52,867 38,580 14,287 100,758 74,419 26,339
Provision for Loan Losses ................. 4,990 600 4,390 6,490 1,200 5,290
------------ ------------ ------------ ------------ ------------ ------------
Net interest income after provision for
loan losses .......................... 47,877 37,980 9,897 94,268 73,219 21,049
Other Income (Loss):
Service and fee income .................... 8,528 4,701 3,827 13,580 9,591 3,989
Net gains on loan sales ................... 35,793 16,846 18,947 70,648 26,401 44,247
Loan fees ................................. 5,063 4,107 956 11,843 6,194 5,649
Securities transactions ................... (6,818) 9 (6,827) (7,151) 3 (7,154)
------------ ------------ ------------ ------------ ------------ ------------
42,566 25,663 16,903 88,920 42,189 46,731
Other Expenses:
Personnel ................................. 21,336 15,716 5,620 40,644 28,463 12,181
Commissions ............................... 21,105 9,835 11,270 41,744 14,733 27,011
Occupancy and equipment ................... 3,814 3,068 746 7,435 6,256 1,179
Amortization of intangible assets ......... 153 1,431 (1,278) 298 2,818 (2,520)
Data processing ........................... 1,667 1,451 216 3,373 2,990 383
Marketing ................................. 1,382 788 594 2,492 1,461 1,031
Professional fees ......................... 3,059 838 2,221 5,719 1,446 4,273
Other ..................................... 9,374 5,618 3,756 17,772 10,138 7,634
------------ ------------ ------------ ------------ ------------ ------------
Total other expenses ................... 61,890 38,745 23,145 119,477 68,305 51,172
------------ ------------ ------------ ------------ ------------ ------------
Income before provision for income taxes 28,553 24,898 3,655 63,711 47,103 16,608
Provision for Income Taxes ................ 10,973 9,735 1,238 24,148 17,944 6,204
------------ ------------ ------------ ------------ ------------ ------------
Net Income ................................ $ 17,580 $ 15,163 $ 2,417 $ 39,563 $ 29,159 $ 10,404
============ ============ ============ ============ ============ ============
Earnings Per Share:(1)
Basic ..................................... $ 0.31 $ 0.25 $ 0.70 $ 0.47
Fully Diluted ............................. $ 0.31 $ 0.25 $ 0.69 $ 0.47
Weighted Average: Fully Diluted (1)
Common Shares ............................. 90,260,624 90,260,624 90,260,624 90,260,624
Less: Unallocated ESOP/RRP Shares ......... 5,296,410 5,747,418 5,342,947 5,802,181
Less: Treasury Shares ..................... 27,593,635 23,253,739 27,336,649 22,497,490
------------ ------------ ------------ ------------
57,370,579 61,259,467 57,581,028 61,960,953
============ ============ ============ ============
(1) Prior period amounts have been adjusted to reflect the 2-for-1 stock split
on November 19, 2001.
CONSOLIDATED STATEMENTS OF CONDITION (unaudited)
June 30, 2002 December 31, 2001 Increase (Decrease)
----------- ----------- -----------
(000's omitted)
ASSETS
ASSETS:
Cash and due from banks ..................................... $ 102,190 $ 116,846 $ (14,656)
Federal funds sold .......................................... 64,000 38,000 26,000
Securities available for sale ............................... 1,573,612 1,528,639 44,973
Loans, net .................................................. 3,299,227 2,806,619 492,608
Loans held for sale, net .................................... 1,079,906 1,187,373 (107,467)
Accrued interest receivable ................................. 30,454 28,601 1,853
Bank premises and equipment, net ............................ 43,348 38,939 4,409
Intangible assets, net ...................................... 58,080 58,871 (791)
Other assets ................................................ 194,493 189,558 4,935
----------- ----------- -----------
Total assets ............................................. $ 6,445,310 $ 5,993,446 $ 451,864
=========== =========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES:
Due Depositors-
Savings ................................................... $ 1,001,060 $ 868,028 $ 133,032
Certificates of deposit ................................... 1,111,285 1,083,900 27,385
Money market .............................................. 520,752 350,558 170,194
NOW accounts .............................................. 133,018 115,349 17,669
Demand deposits ........................................... 507,891 483,493 24,398
----------- ----------- -----------
Total deposits ........................................... 3,274,006 2,901,328 372,678
Borrowed funds ............................................ 2,551,604 2,451,762 99,842
Advances from borrowers for taxes and insurance ........... 21,378 17,495 3,883
Accrued interest and other liabilities .................... 40,986 70,665 (29,679)
----------- ----------- -----------
Total liabilities ........................................ 5,887,974 5,441,250 446,724
----------- ----------- -----------
STOCKHOLDERS' EQUITY: (1)
Common stock, par value $ 01 per share, 100,000,000
shares authorized, 90,260,624 issued and 60,908,166
outstanding at June 30, 2002 and 90,260,624 issued and
62,487,286 outstanding at December 31, 2001 ............... 903 903 --
Additional paid-in-capital ................................ 546,779 543,123 3,656
Retained earnings ......................................... 369,478 340,270 29,208
Unallocated common stock held by ESOP ..................... (28,842) (30,215) 1,373
Unearned common stock held by RRP ......................... (14,176) (14,333) 157
Treasury stock (29,352,458 shares at June 30, 2002
and 27,773,338 at December 31, 2001), at cost ............ (326,891) (289,469) (37,422)
----------- ----------- -----------
547,251 550,279 (3,028)
Accumulated other comprehensive income, net of taxes ........ 10,085 1,917 8,168
----------- ----------- -----------
Total stockholders' equity ............................... 557,336 552,196 5,140
----------- ----------- -----------
Total liabilities and stockholders' equity ............... $ 6,445,310 $ 5,993,446 $ 451,864
=========== =========== ===========
(1) Prior period share and related amounts have been adjusted to reflect the
2-for-1 stock split on November 19, 2001
SELECTED DATA (unaudited)
At or For the Three Months At or For the Six Months
Ended June 30, Ended June 30,
--------------------------------- -----------------------------
2002 2001 2002 2001
--------------------------------- -----------------------------
Dollars in thousands, except per share data)
Performance Ratios:
Return on average assets 1.11% 1.09% 1.28% 1.08%
Return on average equity 12.63% 10.73% 14.33% 10.24%
Earnings per share - Fully diluted (1) $ 0.31 $ 0.25 $ 0.69 $ 0.47
Cash earnings per share - Fully diluted (1) $ 0.35 $ 0.30 $ 0.76 $ 0.57
Core earnings per share - Fully diluted (1) $ 0.38 $ 0.25 $ 0.76 $ 0.47
Core cash earnings per share - Fully diluted (1) $ 0.41 $ 0.30 $ 0.83 $ 0.57
Average interest + earning assets to
average interest-bearing liabilities 112.60% 114.64% 113.16% 115.54%
Interest rate spread 3.19% 2.38% 3.08% 2.28%
Net interest margin 3.59% 2.99% 3.51% 2.95%
Noninterest expenses, exclusive of
amortization of intangible assets, to
average assets 3.90% 2.68% 3.86% 2.42%
Efficiency ratio 60.38% 58.09% 60.51% 56.06%
Capital and Other Ratios:
Average equity to average assets 8.78% 10.17% 8.93% 10.51%
Tangible equity to assets at end of
period 7.62% 9.09% 7.62% 9.09%
Total capital to risk-weighted assets 13.94% 16.38% 13.94% 16.38%
Tangible book value per share (1) $ 8.20 $ 8.37 $ 8.20 $ 8.37%
Asset Quality:
Non-accruing loans and real estate owned
to total assets at end of the period 0.39% 0.21% 0.39% 0.21%
Non-accruing securities to total assets
at end of the period 0.03% 0.00% 0.03% 0.00%
Allowance for loan losses to
non-accruing loans at end of period 137.74% 132.78% 137.74% 132.78%
Allowance for loan losses to total loans
at end of period 0.52% 0.42% 0.52% 0.42%
Non-accruing loans $ 16,644 $ 10,988 $ 16,644 $ 10,988
Non-accruing loans and real estate owned $ 25,236 $ 11,823 $ 25,236 $ 11,823
Non-accruing securities $ 2,150 $ -- $ 2,150 $ --
Allowance for loan losses $ 22,925 $ 14,795 $ 22,925 $ 14,795
(1) Prior period amounts have been adjusted to reflect the 2-for-1 stock split
on November 19, 2001.
CONSOLIDATED STATEMENTS OF INCOME (unaudited)
**********************************QUARTER ENDED**********************************
June 30, March 31, December 31, September 30, June 30,
---------------------------------------------------------------------------------
2002 2002 2001 2001 2001
---------------------------------------------------------------------------------
(000's omitted, except per share and share data)
Interest Income:
Loans ........................................... $ 75,755 $ 69,883 $ 68,860 $ 66,721 $ 64,382
Securities, available for sale .................. 24,016 23,825 26,514 27,034 28,068
Federal funds sold .............................. 189 509 250 222 254
-------------------------------------------------------------------------------
Total interest income ........................ 99,960 94,217 95,624 93,977 92,704
-------------------------------------------------------------------------------
Interest Expense:
Savings and escrow .............................. 4,918 4,483 4,290 4,644 4,516
Time ............................................ 9,811 10,346 11,834 13,101 14,206
Money market and NOW ............................ 3,985 3,357 3,129 3,052 2,381
Borrowed funds .................................. 28,379 28,140 30,289 31,276 33,021
-------------------------------------------------------------------------------
Total interest expense ....................... 47,093 46,326 49,542 52,073 54,124
-------------------------------------------------------------------------------
Net interest income .......................... 52,867 47,891 46,082 41,904 38,580
Provision for Loan Losses ....................... 4,990 1,500 4,957 2,600 600
-------------------------------------------------------------------------------
Net interest income after provision for
possible loan losses....... 47,877 46,391 41,125 39,304 37,980
Other Income (Loss):
Service and fee income .......................... 8,528 5,052 4,958 4,793 4,701
Net gains on loan sales ......................... 35,793 34,855 40,337 25,851 16,846
Loan fees ....................................... 5,063 6,780 6,155 4,311 4,107
Securities transactions ......................... (6,818) (333) (171) 61 9
-------------------------------------------------------------------------------
42,566 46,354 51,279 35,016 25,663
Other Expenses:
Personnel ....................................... 21,336 19,308 16,917 16,131 15,716
Commissions ..................................... 21,105 20,639 24,152 12,802 9,835
Occupancy and equipment ......................... 3,814 3,621 3,315 3,248 3,068
Amortization of intangible assets ............... 153 145 1,152 1,373 1,431
FDIC Insurance .................................. 125 120 116 115 109
Data processing ................................. 1,667 1,706 1,497 1,528 1,451
Marketing ....................................... 1,382 1,110 443 600 788
Professional fees ............................... 3,059 2,660 1,584 1,225 838
Other ........................................... 9,249 8,278 7,643 6,424 5,509
-------------------------------------------------------------------------------
Total other expenses ......................... 61,890 57,587 56,819 43,446 38,745
-------------------------------------------------------------------------------
Income before provision for income taxes ..... 28,553 35,158 35,585 30,874 24,898
Provision for Income Taxes ...................... 10,973 13,175 13,339 12,200 9,735
-------------------------------------------------------------------------------
Net Income ...................................... $ 17,580 $ 21,983 $ 22,246 $ 18,674 $ 15,163
===============================================================================
Earnings Per Share: (1)
Basic ........................................... $ 0.31 $ 0.39 $ 0.38 $ 0.31 $ 0.25
Fully Diluted ................................... $ 0.31 $ 0.38 $ 0.37 $ 0.31 $ 0.25
Dividends Declared Per Share (1) ................ $ 0.11 $ 0.10 $ 0.09 $ 0.08 $ 0.08
Stock Closing Price ............................ 19.200 19.680 16.310 12.325 13.925
Weighted Average - Fully Diluted (1)
Common Shares ................................... 90,260,624 90,260,624 90,260,624 90,260,624 90,260,624
Less: Unallocated ESOP/RRP Shares ............... 5,296,410 5,390,001 5,501,952 5,632,980 5,747,420
Less: Treasury Shares ........................... 27,593,635 26,979,496 26,438,665 24,117,072 23,253,738
-------------------------------------------------------------------------------
57,370,579 57,891,127 58,320,007 60,510,572 61,259,466
===============================================================================
(1) Prior period amounts have been adjusted to reflect the 2-for-1 stock split
on November 19, 2001
AVERAGE BALANCES, NET INTEREST INCOME, YIELDS EARNED AND RATES PAID (unaudited)
Three Months Ended June 30,
---------------------------------------------------------------------------
2002 2001
----------------------------------- ---------------------------------------
Average Average
Average Yield/ Average Yield/
Balance Interest Cost Balance Interest Cost
----------- ---------- -------- ---------- ---------- ---------
(000's omitted)
Interest-earning assets:
Loans receivable (1):
Real estate loans ......................... $4,100,486 $ 73,529 7.19% $3,262,392 $ 61,625 7.58%
Other loans ............................... 105,857 2,226 8.43% 118,119 2,757 9.36%
---------- ---------- ---------- ----------
Total loans ............................. 4,206,343 75,755 7.22% 3,380,511 64,382 7.64%
Securities ................................ 1,647,438 24,016 5.85% 1,759,556 28,068 6.40%
Other interest-earning assets (2) ......... 52,307 189 1.45% 32,666 254 3.11%
---------- ---------- ---------- ----------
Total interest-earning assets ............. 5,906,088 99,960 6.79% 5,172,733 92,704 7.19%
---------- ----------
Noninterest-earning assets ................. 449,594 402,759
---------- ----------
Total assets ............................. $6,355,682 $5,575,492
========== ==========
Interest-bearing liabilities:
Deposits:
NOW and money market deposits ............ $ 621,252 3,985 2.57% $ 291,161 2,381 3.28%
Savings and escrow accounts .............. 996,026 4,918 1.98% 808,755 4,516 2.24%
Certificates of deposit .................. 1,101,234 9,811 3.57% 1,020,103 14,206 5.59%
---------- ---------- ---------- ----------
Total deposits .......................... 2,718,512 18,714 2.76% 2,120,019 21,103 3.99%
Total Other Borrowings .................... 2,526,681 28,379 4.51% 2,392,163 33,021 5.54%
---------- ---------- ---------- ----------
Total interest-bearing liabilities ........ 5,245,193 47,093 3.60% 4,512,182 54,124 4.81%
---------- ----------
Noninterest-bearing liabilities (3) ........ 552,338 496,514
---------- ----------
Total liabilities ........................ 5,797,531 5,008,696
Stockholders' equity ....................... 558,151 566,796
---------- ----------
Total liabilities and stockholders' equity $6,355,682 $5,575,492
========== ==========
Net interest-earning assets ................ $ 660,895 $ 660,551
========== ---------- ========== ----------
Net interest income/interest rate spread ... $ 52,867 3.19% $ 38,580 2.38%
========== ==== ========== ====
Net interest margin ........................ 3.59% 2.99%
==== =====
Ratio of average interest-earning assets
to average interest-bearing liabilities 112.60% 114.64%
====== ======
Six Months Ended June 30,
--------------------------------------------------------------------------
2002 2001
----------------------------------- --------------------------------------
Average Average
Average Yield/ Average Yield/
Balance Interest Cost Balance Interest Cost
------------- ----------- --------- ------------- ------------ ---------
(000's omitted)
Interest-earning assets:
Loans receivable (1):
Real estate loans ............... $3,979,497 $ 141,182 7.15% $3,123,188 $ 118,244 7.63%
Other loans ..................... 105,996 4,456 8.48% 118,519 5,587 9.51%
---------- ---------- ---------- ----------
Total loans .................. 4,085,493 145,638 7.19% 3,241,707 123,831 7.70%
Securities ...................... 1,616,029 47,841 5.97% 1,818,560 58,918 6.53%
Other interest-earning assets (2) 91,644 698 1.54% 33,324 633 3.83%
---------- ---------- ---------- ----------
Total interest-earning assets ... 5,793,166 194,177 6.76% 5,093,591 183,382 7.26%
---------- ----------
Noninterest-earning assets ...... 439,232 368,392
---------- ----------
Total assets .................... $6,232,398 $5,461,983
========== ==========
Interest-bearing liabilities:
Deposits:
NOW and money market deposits ............ $ 571,125 7,342 2.59% $ 266,727 4,128 3.12%
Savings and escrow accounts .............. 956,216 9,401 1.98% 796,880 8,877 2.25%
Certificates of deposit .................. 1,090,578 20,157 3.73% 1,000,032 28,136 5.67%
---------- ---------- ---------- ----------
Total deposits ........................ 2,617,919 36,900 2.84% 2,063,639 41,141 4.02%
Total Other Borrowings ................... 2,501,454 56,519 4.56% 2,344,761 67,822 5.83%
---------- ---------- ---------- ----------
Total interest-bearing liabilities ....... 5,119,373 93,419 3.68% 4,408,400 108,963 4.98%
---------- ----------
Noninterest-bearing liabilities (3) ...... 556,346 479,607
---------- ----------
Total liabilities ........................ 5,675,719 4,888,007
Stockholders' equity ..................... 556,679 573,976
---------- ----------
Total liabilities and stockholders' equity $6,232,398 $5,461,983
========== ==========
Net interest-earning assets .............. $ 673,793 $ 685,191
========== ==========
---------- ----------
Net interest income/interest rate spread.. $ 100,758 3.08% $ 74,419 2.28%
========== ==== ========== ====
Net interest margin ...................... 3.51% 2.95%
==== ====
Ratio of average interest-earning assets
to average interest-bearing liabilities 113.16% 115.54%
====== ======
__________________
(1) The average balance of loans receivable includes nonperforming loans,
interest on which is recognized on a cash basis.
(2) Includes money market accounts and Federal Funds sold.
(3) Consists primarily of demand deposit accounts.
Loan Portfolio Composition. The following table sets forth the composition of
the Bank's held for investment loans at the dates indicated. (unaudited)
June 30, 2002 December 31, 2001 Increase (Decrease)
----------- ----------- -----------
(000's omitted)
Mortgage loans: (1)
Single-family residential ........... $ 2,532,941 $ 2,062,336 $ 470,605
Multi-family residential ............ 54,259 48,783 5,476
Commercial real estate .............. 391,438 335,821 55,617
Construction and land ............... 205,310 245,515 (40,205)
Home equity ......................... 17,413 12,815 4,598
----------- ----------- -----------
Total mortgage loans ............... 3,201,361 2,705,270 496,091
Other loans:
Student loans ....................... 115 288 (173)
Passbook loans ...................... 8,662 7,477 1,185
Commercial business loans ........... 44,666 42,962 1,704
Other consumer loans ................ 53,525 60,292 (6,767)
----------- ----------- -----------
Total other loans .................. 106,968 111,019 (4,051)
----------- ----------- -----------
Total loans receivable ............. 3,308,329 2,816,289 492,040
Less:
Premium (discount) on loans purchased 4,533 5,135 (602)
Allowance for loan losses ........... (22,925) (20,041) (2,884)
Deferred loan costs (fees) .......... 9,289 5,236 4,053
----------- ----------- -----------
Loans receivable, net ............... $ 3,299,226 $ 2,806,619 $ 492,607
=========== =========== ===========
__________________
(1) Mortgage loans held for sale, net at June 30, 2002 and December 31, 2001,
were $1.1 billion and $1.2 billion, respectively, are not included in this
table.
Delinquent Loans: The following table sets forth information concerning
delinquent loans at the dates indicated. The amounts presented represent the
total outstanding principal balances of the related held in portfolio and held
for sale loans, rather than the actual payment amounts which are past due.
June 30, 2002 December 31, 2001
------ ------
90 Days or More (000's Omitted)
Mortgage loans:
Single-family residential..... $5,942 $5,432
Multi-family residential ..... -- --
Commercial real estate ....... -- --
Construction and land ........ 282 509
Home equity .................. 29 30
------ ------
Total mortgage loans ........ 6,253 5,971
Other loans:
Commercial business loans .... 27 774
Other loans .................. 922 468
------ ------
Total other loans ........... 949 1,242
------ ------
Total ....................... 7,202 7,213
====== ======
June 30, 2002 December 31, 2001
------- -------
60-89 Days
Mortgage loans:
Single-family residential $ 5,873 $ 5,945
Multi-family residential -- 162
Commercial real estate .. 402 1,510
Construction and land ... 68 5,339
Home equity ............. 90 258
------- -------
Total mortgage loans ... 6,433 13,214
Other loans:
Commercial business loans 338 42
Other loans ............. 523 586
------- -------
Total other loans ...... 861 628
------- -------
Total .................. 7,294 13,842
======= =======
June 30, 2002 December 31, 2001
------- -------
30-59 Days
Mortgage loans:
Single-family residential..... $15,371 $15,634
Multi-family residential ..... 196 567
Commercial real estate ....... 3,318 3,848
Construction and land ........ 1,215 9,113
Home equity .................. 236 62
------- -------
Total mortgage loans ........ 20,336 29,224
Other loans:
Commercial business loans .... 1,298 1,257
Other loans .................. 1,802 2,645
------- -------
Total other loans ........... 3,100 3,902
------- -------
Total ....................... 23,436 33,126
======= =======