FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
(Mark One)
[x] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934.
For the quarterly period ended December 31, 1996.
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934.
For the transition period from to
Commission file number 0-23526
LONG ISLAND BANCORP, INC.
(Exact name of registrant as specified in its charter)
DELAWARE 11-3198508
(State or other jurisdiction of (IRS Employer Identification
incorporation or organization) Number)
201 OLD COUNTRY ROAD, MELVILLE, NEW YORK 11747-2724
(Address of principal executive offices) (Zip Code)
(516) 547-2000
(Registrant's telephone number, including area code)
(Former name, former address and former fiscal year,
if changed since last report)
Indicate by check mark whether the registrant (1) has filed all the
reports required to be filed by Section 13 or 15(d) of the Securities Exchange
Act of 1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.
YES X NO ___
Indicate the number of shares outstanding of each of the issuer's
classes of common stock, as of the latest practicable date.
24,458,346 SHARES WERE OUTSTANDING AS OF DECEMBER 31, 1996
LONG ISLAND BANCORP, INC.
FORM 10-Q
INDEX
PART I - FINANCIAL INFORMATION Page
- ------------------------------ ----
ITEM 1. Financial Statements
Consolidated Statements of Financial Condition at
December 31, 1996 and September 30, 1996 3
Consolidated Statements of Operations for the three months ended
December 31, 1996 and 1995 4
Consolidated Statement of Changes in Stockholders' Equity for the
three months ended December 31, 1996 5
Consolidated Statements of Cash Flows for the three months
ended December 31, 1996 and 1995 6
Notes to the Consolidated Financial Statements 7 - 8
ITEM 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 8 - 18
PART II - OTHER INFORMATION
- ---------------------------
ITEM 1. Legal Proceedings 19
ITEM 2. Changes in Securities 19
ITEM 3. Defaults Upon Senior Securities 19
ITEM 4. Submission of Matters to a Vote of Security Holders 19
ITEM 5. Other Information 19
ITEM 6. Exhibits and Reports on Form 8-K 19
Signature Page 20
LONG ISLAND BANCORP, INC.
AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(IN THOUSANDS, EXCEPT SHARE DATA)
DECEMBER 31, SEPTEMBER 30,
1996 1996
--------------- ---------------
A S S E T S
Cash and cash equivalents (including interest-earning assets of
$110,429 and $37,357, respectively) $ 166,822 $ 76,348
Investment in debt and equity securities, net:
Available-for-sale 164,307 180,650
Mortgage-backed securities, net:
Held-to-maturity (estimated fair value of
$19,521 and $21,120, respectively) 22,934 23,096
Available-for-sale 1,718,607 1,717,106
Stock in Federal Home Loan Bank of New York, at cost 40,754 40,754
Loans held for sale, net 51,104 57,969
Loans receivable held for investment, net:
Real estate loans, net 3,247,624 2,921,285
Commercial loans, net 7,788 7,810
Other loans, net 149,741 145,654
--------------- ---------------
Loans, net 3,405,153 3,074,749
Less allowance for possible loan losses (33,488) (33,912)
--------------- ---------------
Total loans receivable held for investment, net 3,371,665 3,040,837
Mortgage servicing rights, net 35,597 29,687
Office properties and equipment, net 89,722 89,279
Accrued interest receivable, net 33,047 32,962
Investment in real estate, net 11,865 10,680
Deferred taxes 24,983 31,207
Excess of cost over fair value of assets acquired 5,156 5,265
Prepaid expenses and other assets 22,777 27,951
--------------- ---------------
Total assets $ 5,759,340 $ 5,363,791
=============== ===============
L I A B I L I T I E S A N D S T O C K H O L D E R S ' E Q U I T Y
Liabilities:
Deposits $ 3,661,125 $ 3,633,010
Official checks outstanding 55,957 49,860
Borrowed funds 1,400,950 978,023
Mortgagors' escrow liabilities 44,416 64,232
Accrued expenses and other liabilities 71,205 119,572
--------------- ---------------
Total liabilities 5,233,653 4,844,697
Stockholders' equity:
Preferred stock ($0.01 par value, 5,000,000 shares authorized;
none issued) --- ---
Common stock ($0.01 par value, 45,000,000 shares authorized;
26,816,464 shares issued, 24,458,346 and 24,644,157
outstanding, respectively) 268 268
Additional paid-in capital 305,419 304,027
Unallocated Employee Stock Ownership Plan (18,658) (19,230)
Unearned Management Recognition & Retention Plan (5,088) (5,551)
Unrealized gain on securities available-for-sale, net of tax 8,870 6,633
Retained income-partially restricted 293,339 285,311
Treasury stock, at cost (2,358,118 and 2,172,307 shares,
respectively) (58,463) (52,364)
--------------- ---------------
Total stockholders' equity 525,687 519,094
--------------- ---------------
Total liabilities and stockholders' equity $ 5,759,340 $ 5,363,791
=============== ===============
See accompanying notes to unaudited consolidated financial statements.
LONG ISLAND BANCORP, INC.
AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT FOR PER SHARE DATA)
FOR THE THREE MONTHS ENDED
DECEMBER 31,
------------------------------
1996 1995
------------- ----------------
Interest income:
Real estate loans $ 59,159 $ 39,672
Commercial loans 178 209
Other loans 3,904 3,648
Mortgage-backed securities 28,999 38,695
Debt and equity securities 3,730 4,503
------------- -------------
Total interest income 95,970 86,727
------------- -------------
Interest expense:
Deposits 39,438 39,421
Borrowed funds 16,276 8,895
------------- -------------
Total interest expense 55,714 48,316
------------- -------------
Net interest income 40,256 38,411
Provision for possible loan losses 1,500 1,600
------------- -------------
Net interest income after provision for possible 38,756 36,811
loan losses
Non-interest income:
Fees and other income:
Loan fees and service charges 1,005 700
Loan servicing fees 3,382 3,057
Income from insurance and securities commissions 508 327
Deposit service fees 1,528 1,460
------------- -------------
Total fee income 6,423 5,544
Other income 862 661
------------- -------------
Total fees and other income 7,285 6,205
Net gains on sale activity:
Net gains on loans and mortgage-backed securities 1,975 625
Net gains on investment in debt and equity
securities 98 259
------------- -------------
Total net gains on sale activity 2,073 884
Net (loss) gain on investment in real estate and premises (515) 2,168
------------- -------------
Total non-interest income 8,843 9,257
Non-interest expense:
General and administrative expense:
Compensation, payroll taxes and fringe benefits 14,128 13,277
Advertising 1,255 1,215
Office occupancy and equipment 5,396 4,934
Federal insurance premiums 1,905 2,217
Other general and administrative expense 4,624 4,144
------------- -------------
Total general and administrative expense 27,308 25,787
Amortization of excess of cost over fair value of assets
acquired 109 63
------------- -------------
Total non-interest expense 27,417 25,850
------------- -------------
Income before income taxes 20,182 20,218
Provision for income tax (benefit) expense 8,248 8,597
------------- -------------
Net income $ 11,934 $ 11,621
============= =============
Primary earnings per common share $ 0.50 $ 0.47
============= =============
Fully diluted earnings per common share $ 0.50 $ 0.47
============= =============
See accompanying notes to unaudited consolidated financial statements.
LONG ISLAND BANCORP, INC.
AND SUBSIDIARY
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
THREE MONTHS ENDED DECEMBER 31, 1996
(IN THOUSANDS, EXCEPT SHARE DATA)
UNALLOCATED UNEARNED UNREALIZED
EMPLOYEE MANAGEMENT GAIN ON RETAINED
ADDITIONAL STOCK RECOGNITION SECURITIES INCOME -
COMMON PAID-IN OWNERSHIP & RETENTION AVAILABLE PARTIALLY TREASURY
STOCK CAPITAL PLAN PLAN FOR SALE RESTRICTED STOCK TOTAL
------ --------- --------- ---------- ---------- --------- ------ ----------
Balance at September 30, 1996 $ 268 $304,027 $(19,230) $ (5,551) $ 6,633 $ 285,311 $(52,364) $519,094
Net income 11,934 11,934
Allocation/amortization of ESOP
and MRP stock and related
tax benefits 1,283 572 463 2,318
Change in unrealized gains on
securities available-for-sale,
net of taxes 2,237 2,237
Dividends (3,373) (3,373)
Repurchase of common stock
(250,000 shares) net of
exercise of stock options
(19,189 shares) and
related tax benefits 109 (533) (6,099) (6,523)
-------- -------- -------- ---------- -------- -------- -------- ---------
Balance at December 31, 1996 $ 268 $305,419 $(18,658) $ (5,088) $ 8,870 $ 293,339 $(58,463) $525,687
======== ======== ========= ========== ========= ======== ======== =========
See accompanying notes to unaudited consolidated financial statements.
LONG ISLAND BANCORP, INC.
AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS
(IN THOUSANDS)
FOR THE THREE MONTHS ENDED
DECEMBER 31,
---------------------------------
1996 1995
------------- --------------
Operating activities:
Net income $ 11,934 $ 11,621
Adjustments to reconcile net income to net cash provided (used) by operating
activities:
Provision for possible loan losses 1,500 1,600
Write-off of real estate owned and investment in real estate 141 128
Gains on sale of real estate owned, net (42) (49)
Depreciation and amortization 3,550 2,382
Capitalized mortgage servicing rights, net (1,526) (555)
Amortization of premiums, net of accretion of discounts-debt, equity and
mortgage-backed securities 7 370
Amortization of premiums, net of accretion of discounts-purchase accounting 219 (436)
Employee Stock Ownership Plan/Management Recognition & Retention Plan expense 2,318 1,423
Gains on sales of loans and mortgage-backed securities, net (1,975) (625)
Originations of loans held-for-sale, net of proceeds from sales 31,759 (8,920)
Gains on sales of debt and equity securities, net (98) (259)
(Increase) decrease in accrued interest receivable (85) 759
Decrease in accrued and other liabilities (49,571) (5,834)
Increase in official checks outstanding 6,097 48,550
(Increase) decrease in deferred taxes, prepaid expenses and other assets 9,246 (4,368)
Net decrease in unearned income (4,546) (383)
------------- --------------
Net cash (used) provided by operating activities (54,590) 45,404
------------- --------------
Investing activities:
Proceeds from sales of debt and equity securities, available-for-sale 15,000 48,335
Proceeds from sales of mortgage-backed securities, available-for-sale 173,521 ---
Proceeds from maturities of and principal payments on debt and equity securities 36,263 143,372
Principal payments on mortgage-backed securities 70,186 164,656
Purchases of debt and equity securities, available-for-sale (33,921) (103,382)
Purchases of mortgage-backed securities, available-for-sale (50,015) (78,198)
Principal payments on loans held-for-investment, net of originations and (484,280) (158,027)
purchases
Proceeds from sale of real estate owned, office properties and equipment 1,871 4,555
Purchases of office properties and equipment (2,544) (3,485)
Purchase of mortgage servicing rights (4,045) ---
------------- --------------
Net cash (used) provided by investing activities (277,964) 17,826
------------- --------------
Financing activities:
Net increase (decrease) in demand deposits, NOW accounts and savings accounts 3,752 (4,683)
Net decrease in mortgagors' escrow accounts (19,816) (28,804)
Net increase in certificates of deposit 24,363 49,488
Costs to repurchase common stock (5,992) (13,066)
Proceeds from the exercise of stock options 221 357
Cash dividends paid on common stock (2,427) (2,571)
Net decrease in short-term borrowings (10,994) (135,000)
Net increase in long-term borrowings 433,921 102,346
------------- --------------
Net cash provided (used) by financing activities 423,028 (31,933)
------------- --------------
Increase in cash and cash equivalents 90,474 31,297
Cash and cash equivalents at the beginning of the quarter 76,348 67,410
------------- --------------
Cash and cash equivalents at the end of the quarter $ 166,822 $ 98,707
============= ==============
Supplemental disclosures of cash flow information:
Cash paid during the quarter for:
Interest on deposits and borrowed funds $ 54,058 $ 50,994
============= ==============
Income taxes $ 3,845 $ 11,202
============= ==============
Non-cash investing activity:
Additions to real estate owned, net $ 3,013 $ 2,160
============= ==============
Securitization of loans $ 191,306 $ 46,658
============= ==============
See accompanying notes to unaudited consolidated financial statements.
LONG ISLAND BANCORP, INC.
AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. BASIS OF PRESENTATION
The accompanying unaudited consolidated financial statements include
the accounts of Long Island Bancorp, Inc. ("Company") and its
wholly-owned subsidiary The Long Island Savings Bank, FSB ("Bank").
The unaudited consolidated financial statements included herein reflect
all adjustments which are, in the opinion of management, necessary for
the fair presentation of the Company's interim financial condition as
of the dates indicated and the results of operations for the periods
shown. In preparing the accompanying consolidated financial statements,
management is required to make estimates and assumptions that affect
the reported amounts of assets and liabilities as of the date of the
consolidated statements of financial condition and statements of
operations for the periods presented. The results of operations for the
three months ended December 31, 1996 are not necessarily indicative of
the results of operations to be expected for the remainder of the year.
Certain information and note disclosures normally included in financial
statements prepared in accordance with generally accepted accounting
principles have been condensed or omitted pursuant to the rules and
regulations of the Securities and Exchange Commission ("SEC").
These unaudited consolidated financial statements should be read in
conjunction with the audited consolidated financial statements and
notes thereto included in the Company's Annual Report to Shareholders
and Form 10-K for the fiscal year ended September 30, 1996.
Certain reclassifications have been made to conform the prior period's
consolidated financial statements to the current presentation.
2. EARNINGS PER SHARE OF COMMON STOCK
Earnings per share ("EPS") is determined by dividing net income for the
period by the weighted average number of common shares outstanding
during the same period. Primary EPS includes in the calculation of
common shares outstanding the common stock equivalents related to
shares issuable under the Company's stock benefit plans that have a
dilutive effect while fully diluted EPS includes the common stock
equivalents that have the maximum dilutive effect. The weighted average
number of shares outstanding for primary and fully diluted EPS
calculations for the three months ended December 31, 1996 and 1995 are
presented on page 15 herein.
3. CASH AND CASH EQUIVALENTS
For purposes of reporting cash flows, cash and cash equivalents include
cash on hand, amounts due from banks and short-term loans to commercial
banks with original terms to maturity of less than three months.
4. ACCOUNTING CHANGES
Effective October 1, 1996, the Company adopted Financial Accounting
Standards No. 121 ("SFAS 121"), "Accounting for the Impairment of
Long-Lived Assets and for Long-Lived Assets to Be Disposed Of." SFAS
121 establishes accounting standards for the impairment of long-lived
assets, certain identifiable intangibles, and goodwill related to those
assets to be held and used and for long-lived assets and certain
identifiable intangibles to be disposed of. This statement requires
that long-lived assets and certain identifiable intangibles to be held
and used by an entity be reviewed for impairment whenever events or
changes in circumstances indicate that the carrying amount of an asset
may not be recoverable. In performing the review for recoverability,
the entity should estimate the future cash flows expected to result
from the use of the asset and its eventual disposition. If the sum of
the expected future cash flows is less than the carrying amount of the
asset, an impairment loss should be recognized. This statement requires
that long-lived assets and certain identifiable intangibles to be
disposed of be reported at the lower of carrying amount or fair value
less cost to sell, except for assets that are covered by Accounting
Principle Board Opinion ("APB") No. 3, "Reporting the Results of
Operations - Reporting the Effects of Disposal of a Segment of a
Business, and Extraordinary, Unusual and Infrequently Occurring Events
and Transactions." The adoption of SFAS 121 did not have a material
effect on the Company's financial condition and results of operations.
5. RECENT DEVELOPMENTS
On December 19, 1996, the Company announced the declaration of a
quarterly dividend of fifteen cents ($0.15) per common share. This is
the Company's ninth consecutive dividend and represents a 50% increase
from the previous quarterly dividend of $0.10. The dividend is payable
on February 14, 1997 to shareholders of record at the close of business
on January 15, 1997.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS
- ------- ------------------------------------
GENERAL
The Company was incorporated in the State of Delaware in December 1993 at the
direction of the Board of Directors of the Bank for the purpose of becoming a
holding company to own all of the outstanding capital stock of the Bank upon its
conversion from a mutual to a stock form of organization. The mutual-to-stock
conversion was completed on April 14, 1994.
FINANCIAL CONDITION
Total assets at December 31, 1996 were $5.8 billion, an increase of $395.5
million, or 7.4%, from September 30, 1996. The increase in assets is principally
due to an increase in net loans receivable held for investment of $330.8
million, or 10.9%, to $3.4 billion at December 31, 1996 from $3.0 billion at
September 30, 1996. Further contributing to the growth in assets was the
increase in cash and cash equivalents of $90.5 million, or 118.5%, to $166.8
million at December 31, 1996 from $76.3 million at September 30, 1996. Partially
offsetting these increases was a reduction of $16.4 million, or 9.0%, in
investment in debt and equity securities to $164.3 million at December 31, 1996
from $180.7 million at September 30, 1996.
Non-performing assets increased by $0.7 million, or 1.0%, to $62.0 million at
December 31, 1996 from $61.3 million at September 30, 1996 reflecting a $1.2
million increase in real estate owned partially offset by a $0.5 million
decrease in non-performing loans. Despite the marginal increase in
non-performing assets, the ratio of non-performing assets to total assets and
non-performing loans to total gross loans improved by 6 basis points and 17
basis points at December 31, 1996, respectively, when compared with September
30, 1996. This improvement reflects in part the growth in total assets and total
gross loans.
Total deposits at December 31, 1996 were $3.7 billion, an increase of $28.1
million, or 0.8%, from September 30, 1996. Borrowed funds increased by $422.9
million, or 43.2%, to $1.4 billion at December 31, 1996 from $978.0 million at
September 30, 1996.
Stockholders' equity increased by $6.6 million, or 1.3%, to $525.7 million at
December 31, 1996 from $519.1 million at September 30, 1996. The increase
primarily reflects earnings of $11.9 million, an improvement of $2.2 million,
net of tax, in unrealized gain on securities classified as available-for-sale
and $2.4 million related to the Company's stock benefit plans. These increases
were partially offset by the declaration of $3.4 million in dividends and the
purchase of treasury stock, net of shares issued for the exercise of stock
options, of $6.5 million. At December 31, 1996, the Company's ratio of
stockholders' equity to total assets was 9.13% and book value per share was
$21.49.
LIQUIDITY, REGULATORY CAPITAL AND CAPITAL RESOURCES
GENERAL. The Company's primary sources of funds are deposits, principal and
interest payments on loans and mortgage-backed securities, retained income and
borrowings under reverse-repurchase agreements and a funding note issued in June
1996 which is collateralized by a pool of adjustable rate residential mortgage
loans. Payments of principal and interest on the funding note are paid monthly
based on the scheduled payments due on the underlying loans. Proceeds from the
sale of securities and loans are also a source of funding. While maturities and
scheduled amortization of loans and mortgage-backed securities are predictable
sources of funds, deposit flows and mortgage prepayments are greatly influenced
by general interest rates, economic conditions and competition.
The Bank is required to maintain minimum levels of liquid assets as defined by
Office of Thrift Supervision ("OTS") regulations. This requirement, which may be
varied at the direction of the OTS depending upon economic conditions and
deposit flows, is based upon a percentage of deposits and short-term borrowings.
The required ratio is currently 5.00%. The Bank's liquidity ratio increased to
9.90% at December 31, 1996 from 9.34% at September 30, 1996. Currently, the Bank
maintains a liquidity ratio above the regulatory requirements in accordance with
its investment objective of investing in short-term debt securities. Future
levels may vary.
The Company's most liquid assets are cash and short-term investments. The levels
of these assets are dependent on the Company's operating, financing, lending and
investing activities during any given period.
The primary investment activity of the Bank is the origination of real estate
loans and other loans. During the quarter ended December 31, 1996, the Bank
originated or purchased real estate loans in the amount of $747.6 million,
including $187.1 million which represents the bulk purchase of loans, and other
loans in the amount of $20.0 million. The Bank purchases and originates
mortgage-backed securities to maintain its liquidity to meet its funding demand.
Purchases and originations of mortgage-backed securities totaled $50.0 million
and $190.4 million, respectively, for the quarter ended December 31, 1996. These
activities were funded primarily by principal repayments on loans and
mortgage-backed securities, borrowings under reverse-repurchase agreements, and
sales of loans and securities classified as available-for-sale. Other investing
activities may include the acquisition of U.S. government securities, federal
agency obligations and asset-backed securities.
Liquidity management of the Company is both a daily and long-term component of
management's strategy. Excess funds are generally invested in short-term and
intermediate-term securities. In the event that the Bank should require funds
beyond its ability to generate them internally, additional sources of funds are
available through the use of Federal Home Loan Bank ("FHLB") advances and
reverse repurchase agreements. In addition, the Bank may access funds, if
necessary, through various lines of credit totaling $75.0 million at December
31, 1996 from the FHLB.
At the time of conversion, the Bank was required by the OTS to establish a
liquidation account which will be reduced to the extent that eligible account
holders reduce their qualifying deposits. In the unlikely event of a complete
liquidation of the Bank, each eligible account holder will be entitled to
receive a distribution from the liquidation account. The Bank is not permitted
to declare or pay a dividend on or repurchase any of its capital stock if the
effect would be to cause the Bank's regulatory capital to be reduced below the
amount required for the liquidation account. Unlike the Bank, the Company is not
subject to OTS regulatory restrictions on the declaration or payment of
dividends to its stockholders, although the source of such dividends could
depend upon dividend payments from the Bank. The Company is subject, however, to
the requirements of Delaware law, which generally limit dividends to an amount
equal to the excess of its net assets (the amount by which total assets exceed
total liabilities) over its stated capital or, if there is no such excess, to
its net profits for the current and/or immediately preceding fiscal year.
REGULATORY CAPITAL POSITION. Under OTS capital regulations, the Bank is required
to comply with each of three separate capital adequacy standards. At December
31, 1996, the Bank exceeded each of the three OTS capital requirements, as
illustrated on page 15 herein.
COMPARISON OF OPERATING RESULTS FOR THE THREE MONTHS ENDED DECEMBER 31, 1996
AND 1995
GENERAL. The Company had net income of $11.9 million and primary and fully
diluted EPS of $0.50 for the quarter ended December 31, 1996 ("1996 quarter").
For the quarter ended December 31, 1995 ("1995 quarter"), net income was $11.6
million and primary and fully diluted EPS was $0.47.
NET INTEREST INCOME. Net-interest income increased by $1.9 million, or 4.9%, to
$40.3 million in the 1996 quarter from $38.4 million in the 1995 quarter. The
increase in net interest income is primarily attributable to the growth of the
average real estate loan portfolio to $3.1 billion for the 1996 quarter from
$2.0 billion for the 1995 quarter. This growth was funded by the investment of
additional borrowed funds, which on average increased by $532.2 million over the
1995 period, and the redeployment of funds previously invested in
mortgage-backed securities, which declined on average by $540.7 million over the
1995 period.
PROVISION FOR POSSIBLE LOAN LOSSES. The provision for possible loan losses
decreased marginally by $0.1 million, or 6.3%, to $1.5 million in the 1996
quarter from $1.6 million in the 1995 quarter. This decrease reflects
management's assessment of the level of non-performing loans, which at December
31, 1996 was $52.6 million compared with $52.7 million at December 31, 1995. At
December 31, 1996, the ratio of the allowance for possible loan losses to
non-performing loans improved by 149 basis points to 63.64% from 62.15% at
December 31, 1995. Although management considers the allowance for possible loan
losses to be adequate at December 31, 1996, if general economic trends and real
estate values were to decline, the level of non-performing loans may increase.
Such an increase could result in greater provisions for possible loan losses
thereby adversely affecting future operating results.
NON-INTEREST INCOME. Total non-interest income decreased by $0.5 million, or
4.5%, to $8.8 million during the 1996 quarter as compared with $9.3 million for
the 1995 quarter. The decrease in total non-interest income primarily reflects a
decline in net (loss) gain on investment in real estate and premises of $2.7
million to a loss of $0.5 million during the 1996 quarter as compared with a
gain of $2.2 million during the 1995 quarter. The decline in the net (loss) gain
on investment in real estate and premises reflects a $2.0 million profit from
the sale of three rental office properties that occurred in the 1995 quarter
coupled with the resultant loss of rental income of $0.8 million from the sale
of these and seven other real estate investment properties by the Company in
fiscal 1996. Partially offsetting the decline in the net (loss) gain on
investment in real estate and premises were the improvements in net gains on
sale activity and total fee income. Net gain on sales activity increased by $1.2
million, or 134.5%, to $2.1 million in the 1996 quarter from $0.9 million in the
1995 quarter. This improvement reflects the execution of management's strategy
of recognizing profits in the available-for-sale portfolios as interest rates
fluctuate. This strategy allowed the Company to enhance earnings, increase
liquidity and improve its ability to take advantage of higher yielding
investments. Total fee income increased to $6.4 million in the 1996 quarter from
$5.5 million in the 1995 quarter principally from the growth in loan fees and
service charges and loan servicing fees reflecting the increase in the Company's
loan portfolio and mortgage servicing activities.
NON-INTEREST EXPENSE. Total non-interest expense increased by $1.5 million, or
6.1%, to $27.4 million in the 1996 quarter from $25.9 million in the 1995
quarter. This increase is primarily due to increased expenditures of $0.9
million for compensation and benefit costs related to the increase in the value
of the Company's stock and its direct impact on stock-based compensation
expense, greater depreciation and occupancy costs of $0.5 million resulting from
the Company's technological investments and other general and administrative
expenses of $0.5 million related to the increase in mortgage origination volume.
The effect of these increases on non-interest expense was partially mitigated by
the reduction in federal insurance premiums due to a $0.5 million credit from
the Savings Association Insurance Fund in accordance with The Deposit Insurance
Funds Act of 1996 ("Act"). Beginning on January 1, 1997, the Company anticipates
reductions in compensation and benefit costs due to stock-based benefit plan
modifications and in federal insurance premiums as the Act reduced the Company's
deposit assessment rate to 6.48 basis points from 23 basis points.
PROVISION FOR INCOME TAXES. Income tax expense decreased by $0.4 million, or
4.1%, to $8.2 million in the 1996 quarter from $8.6 million in the 1995 quarter.
This decrease is primarily attributable to a 1.6% reduction in the effective tax
rate to 40.9% in the 1996 quarter from 42.5% in the 1995 quarter. The decline in
the effective tax rate primarily reflects changes to the New York State bad debt
deduction regulations.
IMPACT OF NEW ACCOUNTING STANDARDS
In October 1995, the FASB issued Statement of Financial Accounting Standards No.
123 ("SFAS 123"), "Accounting for Stock-Based Compensation." SFAS 123 applies to
all transactions in which an entity acquires goods or services by issuing equity
instruments or by incurring liabilities where the payment amounts are based on
the entity's common stock price, except for employee stock ownership plans. SFAS
123 covers transactions with employees and non-employees and is applicable to
both public and non-public entities.
SFAS 123 establishes a new method of accounting for stock-based compensation
arrangements with employees. The new method is a fair value based method rather
than the intrinsic value based method that is contained in APB 25. Entities are
not required to adopt the new fair value based method for purposes of preparing
their basic financial statements and may continue to use the APB 25 method. The
SFAS 123 fair value based method is considered by the FASB to be preferable to
the APB 25 method, and thus, once the fair value based method is adopted, an
entity cannot change back to the APB 25 method. Also, the selected method
applies to all of an entity's compensation plans and transactions. For entities
not adopting the SFAS 123 fair value based method, SFAS 123 requires the entity
to display in the footnotes to the financial statements pro forma net income and
earnings per share information as if the fair value based method had been
adopted.
The accounting requirements of SFAS 123 are effective for transactions entered
into in fiscal years that begin after December 15, 1995, though they may be
adopted on issuance. The disclosure requirements are effective for financial
statements for fiscal years beginning after December 15, 1995, or for an earlier
fiscal year for which SFAS 123 is initially adopted for recognizing compensation
cost. Pro forma disclosures required for entities that elect to continue to
measure compensation cost using the APB 25 method must include the effects of
all awards granted in fiscal years that begin after December 15, 1994. Pro forma
disclosures for awards granted in the first fiscal year beginning after December
15, 1994, need not be included in financial statements for that fiscal year but
should be presented subsequently whenever financial statements for that fiscal
year are presented for comparative purposes with financial statements for a
later fiscal year. The Company intends to continue its present method of
accounting for stock-based compensation; accordingly, the adoption of the
Statement will not have an effect on the financial statements with the exception
of expanded disclosures required under the Statement.
In June 1996, the FASB issued Statement of Financial Accounting No. 125 ("SFAS
125"), "Accounting for Transfers and Servicing of Financial Assets and
Extinguishments of Liabilities." SFAS 125 provides accounting and reporting
standards for transfers and servicing of financial assets and extinguishments of
liabilities based on consistent application of a financial-components approach
that focuses on control. Under this approach, after a transfer of financial
assets, an entity recognizes the financial and servicing assets it controls and
the liabilities it has incurred, derecognizes financial assets when control has
been surrendered, and derecognizes liabilities when extinguished. This statement
provides consistent standards for distinguishing transfers of financial assets
that are sales from transfers that are secured borrowings. This statement
supersedes Statement of Financial Accounting Standards No. 76, "Extinguishment
of Debt", and No. 77, "Reporting by Transferors for Transfers of Receivable with
Recourse", and SFAS 122 and amends SFAS 115 and SFAS 65.
The provisions of SFAS 125 are effective prospectively for transfers and
servicing of financial assets and extinguishments of liabilities occurring after
December 31, 1996 except for those transactions that are governed by Statement
of Financial Accounting No. 127 ("SFAS 127"), "Deferral of the Effective Date of
Certain Provisions of FASB Statement No. 125." FASB 127 was issued in December
1996 to extend the effective date of the provisions of SFAS 125 as they relate
to secured borrowings and collateral and repurchase agreements, dollar rolls,
securities lending and similar transactions for one year. The Company is
currently reviewing SFAS 125 and SFAS 127.
SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
This Form 10-Q Report includes forward looking statements based on current
management expectations. The Company's actual results could differ materially
from those management expectations. Factors that could cause future results to
vary from current management expectations include, but are not limited to,
general economic conditions, legislative and regulatory changes, monetary and
fiscal policies of the federal government, changes in interest rates, deposit
flows, the cost of funds, demand for loan products, demand for financial
services, competition, changes in the quality or composition of the Bank's loan
and investment portfolios, changes in accounting principles, policies or
guidelines, and other economic, competitive, governmental and technological
factors affecting the Company's operations, markets, products, services and
prices. Additional factors are described in the Company's other public reports
filed with the SEC.
AVERAGE BALANCE SHEET
The following table sets forth certain information relating to the Company's
average unaudited consolidated statements of financial condition and the
consolidated statements of operations for the three months ended December 31,
1996 and 1995, and reflects the annualized average yield on assets and average
cost of liabilities for the periods indicated. Such annualized yields and costs
are derived by dividing income or expense by the average balance of assets or
liabilities, respectively, for the periods shown. Average balances are derived
from the average daily balances. The yields and costs include fees which are
considered adjustments to yields.
FOR THE THREE MONTHS ENDED DECEMBER 31,
--------------------------------------------------------------------------------------
1996 1995
----------------------------------------- -----------------------------------------
AVERAGE AVERAGE
AVERAGE YIELD\ AVERAGE YIELD\
BALANCE INTEREST COST BALANCE INTEREST COST
-------------- ------------ ----------- -------------- ------------ -----------
(DOLLARS IN THOUSANDS)
INTEREST-EARNING ASSETS
Interest-earning cash
equivalents $ 58,388 $ 766 5.20 % $ 37,161 $ 519 5.56 %
Debt and equity securities
and FHLB-NY stock, net (1) 213,001 2,964 5.57 282,627 3,984 5.64
Mortgage-backed securities,
net (1) 1,693,945 28,999 6.85 2,234,617 38,695 6.93
Real estate loans, net (2) 3,105,539 59,159 7.62 1,962,272 39,672 8.09
Commercial and other loans,
net (2) 140,214 4,082 11.65 114,391 3,857 13.49
-------------- ------------ --------- -------------- ------------ --------
Total interest-earning assets 5,211,087 95,970 7.37 4,631,068 86,727 7.49
Other non-interest-earning
assets 300,439 255,077
-------------- ------------ -------------- ------------
Total assets $ 5,511,526 $ 95,970 $ 4,886,145 $ 86,727
============== ============ ============== ============
INTEREST BEARING LIABILITIES
Deposits, net $ 3,708,611 $ 39,438 4.22 % $ 3,640,018 $ 39,421 4.31 %
Borrowed funds 1,133,506 16,276 5.70 601,284 8,895 5.89
-------------- ------------ --------- -------------- ------------ --------
Total interest-bearing
liabilities 4,842,117 55,714 4.57 4,241,302 48,316 4.53
Non-interest-bearing
liabilities 144,903 119,822
-------------- --------------
Total liabilities 4,987,020 4,361,124
Total stockholders' equity 524,506 525,021
-------------- ------------ --------- -------------- ------------ --------
Total liabilities and
stockholders' equity $ 5,511,526 $ 55,714 $ 4,886,145 $ 48,316
============== ------------ ============== ------------
Net interest income/spread (3) $ 40,256 2.80 % $ 38,411 2.96 %
============ ========= ============ ========
Net interest margin as %
of interest-earning assets 3.09 % 3.32 %
(4)
========= ========
Ratio of interest-earning
assets to interest-bearing 107.62 % 109.19 %
liabilities ========= ========
(1) Debt and equity and mortgage-backed securities are shown including the
average market value appreciation of $15.8 million and $13.5 million,
before tax, from SFAS 115 for the three months ended December 31, 1996 and
1995, respectively.
(2) Net of unearned discounts, premiums, deferred loan fees, purchase
accounting discounts and premiums and allowance for possible loan losses,
and including non-performing loans and loans held for sale.
(3) Interest rate spread represents the difference between the average rate on
interest-earning assets and the average cost of interest-bearing
liabilities.
(4) Net interest margin represents net interest income divided by average
interest-earning assets.
RATE/VOLUME ANALYSIS
The following table presents the extent to which changes in interest rates and
changes in the volume of interest-earning assets and interest-bearing
liabilities have affected the Company's interest income and expense during the
periods indicated. Information is provided in each category with respect to (i)
changes attributable to changes in volume (changes in volume multiplied by prior
rate), (ii) changes attributable to changes in rate (changes in rate multiplied
by prior volume), and (iii) the net change. The changes attributable to the
combined impact of volume and rate have been allocated proportionately to the
changes due to volume and the changes due to rate.
THREE MONTHS ENDED DECEMBER 31, 1996
COMPARED TO
THREE MONTHS ENDED DECEMBER 31, 1995
INCREASE/(DECREASE)
----------------------------------------------
DUE TO
----------------------------------------------
VOLUME RATE NET
------------- -------------- --------------
(IN THOUSANDS)
Interest-earning assets:
Interest-earning cash
equivalents(1) $ 282 $ (35) $ 247
Debt and equity securities(2)(3) (970) (50) (1,020)
Mortgage-backed securities(3) (9,261) (435) (9,696)
Real estate loans(4) 21,900 (2,413) 19,487
Commercial and other loans(4) 797 (572) 225
------------- -------------- --------------
Total 12,748 (3,505) 9,243
------------- -------------- --------------
Interest-bearing liabilities:
Deposits 789 (772) 17
Borrowed funds 7,675 (294) 7,381
------------- -------------- -------------
Total 8,464 (1,066) 7,398
------------- -------------- --------------
Net change in interest income $ 4,284 $ (2,439) $ 1,845
============= ============== ==============
(1) Cash equivalents include amounts due from banks and short-term loans to
commercial banks with original terms to maturity of less than three months.
(2) Includes FHLB-NY stock.
(3) Debt and equity and mortgage-backed securities are shown including the
average market value appreciation of $15.8 million and $13.5 million,
before tax, from SFAS 115 for the three months ended December 31, 1996 and
1995, respectively.
(4) In computing the volume and rate components of net interest income for
loans, non-performing loans and loans held for sale have been included.
LONG ISLAND BANCORP, INC.
AND SUBSIDIARY
FINANCIAL HIGHLIGHTS
AT OR FOR THE THREE MONTHS
ENDED DECEMBER 31,
----------------------------------
1996 1995
-------------- ---------------
Selected Financial Ratios: (a)
Return on average assets 0.87% 0.95%
Return on average stockholders' equity 9.10 8.85
Average stockholders' equity to average assets 9.52 10.75
Stockholders' equity to total assets 9.13 10.81
Interest rate spread during period 2.80 2.96
Net interest margin 3.09 3.32
Operating expenses to average assets 1.98 2.11
Efficiency ratio (b) 57.44 57.80
Average interest-earning assets to average
interest-bearing liabilities 107.62 109.19
Net interest income to operating expenses 1.47x 1.49x
Selected Data:
Primary earnings per share $0.50 $0.47
Weighted average number of shares outstanding
for primary earnings per share computation 23,775,402 24,655,050
Fully diluted earnings per share $0.50 $0.47
Weighted average number of shares outstanding
for fully diluted earnings per share 23,849,372 24,716,796
computation
Book value per share $21.49 $20.87
Number of shares outstanding for book value per
share computation 24,458,346 25,552,573
Cash dividends declared per share $0.15 $0.10
Dividend payout ratio 30.00% 21.28%
AT DECEMBER 31,
----------------------------
1996 1995
------------ -----------
ASSET QUALITY RATIOS:
Non-performing loans to total gross loans 1.53% 2.51%
Non-performing assets to total assets 1.08 1.29
Allowance for possible loan losses to non-performing loans 63.64 62.15
REGULATORY CAPITAL AT DECEMBER 31, 1996 FOR THE LONG ISLAND SAVINGS BANK, FSB:
REGULATORY REGULATORY EXCESS
CAPITAL CAPITAL CAPITAL
REQUIREMENT LEVEL LEVEL
----------- ----- -----
AMOUNT PERCENT (C) AMOUNT PERCENT (C) AMOUNT PERCENT (C)
------ ----------- ------ ----------- ------ -----------
(DOLLARS IN THOUSANDS)
Tangible capital (d) $ 85,520 1.50% $410,387 7.20% $324,867 5.70%
Core capital (d) 171,039 3.00 410,387 7.20 239,348 4.20
Risk-based capital (e) 234,563 8.00 443,875 15.14 209,312 7.14
(a) Ratios for the three months ended December 31, 1996 and 1995 were
calculated on an annualized basis.
(b) Amount is determined by dividing total general and administrative expense
by net interest income (before the provision for possible loan losses) plus
total fee income.
(c) Tangible and core capital levels are shown as a percentage of total
adjusted assets, as computed based on regulatory guidelines. Risk-based
capital levels are shown as a percentage of risk-weighted assets.
(d) This figure represents GAAP capital excluding the effect of SFAS 115,
goodwill and a portion of mortgage servicing rights.
(e) The difference between GAAP capital and regulatory risk-based capital
represents the exclusion of the effect of SFAS 115, goodwill, a portion of
mortgage servicing rights and an addition for the allowance for possible
loan losses.
Allowance for Possible Loan Losses
The following is a summary of the Company's provisions and allowance for
possible loan losses:
Three Months Ended
December 31,
------------------------------
1996 1995
------------ -------------
(In thousands)
Opening allowance............................. $33,912 $34,358
Provision..................................... 1,500 1,600
Net charge-offs.............................. (1,924) (1,658)
------------- ------------
Ending allowance.............................. $33,488 $34,300
============= ============
Non-Performing Assets
Loans are considered non-performing if they are in foreclosure and/or are 90 or
more days delinquent (excluding those restructured loans that have been returned
to performing status after developing a satisfactory payment history, generally
six months). Loans, other than education loans, accrue interest until considered
doubtful of collection by management, but in no case beyond 90 days delinquent.
Consumer loans (other than education loans) are generally written off upon
becoming 120 days delinquent in the case of installment loans and 180 days in
the case of revolving credit lines. Delinquent interest on education loans
continues to accrue, however, since these loans are backed by a government
agency guarantee and all interest and principal is ultimately expected to be
received. Once management reaches a decision to place a loan on non-accrual
status, all delinquent previously accrued interest on such loan is reversed
against previously recorded income.
The level of non-performing residential property loans is also affected by the
Company's loan restructuring activities. Where borrowers have encountered
hardship, but are able to demonstrate to the Company's satisfaction an ability
and willingness to resume regular monthly payments, the Company seeks to provide
them with an opportunity to restructure their loans. Where successful, these
restructurings avoid the cost of completing the foreclosure process, as well as
any losses on acquisition of the properties and the costs of maintaining and
disposing of real estate owned. Once restructured residential loans comply with
the terms of their restructure agreement for a satisfactory period (generally
six months), the Company returns such loans to performing status.
The following table sets forth information regarding the components of
non-performing assets for the periods indicated. Restructured loans that have
not yet demonstrated a sufficient payment history to warrant a return to
performing status are included with non-performing loans.
December 31, September 30,
1996 1996
------------------- ---------------------
(Dollars in thousands)
Non-performing loans (1):
Residential:
One-to-four family.................................................... $40,818 $39,573
Co-operative apartments............................................... 859 602
Home equity........................................................... 2,542 3,489
Second mortgage....................................................... 187 190
Multi-family.......................................................... 617 896
------- -------
Total residential .................................................. 45,023 44,750
Non-residential:
Commercial real estate................................................ 4,040 4,336
Construction.......................................................... 453 453
Land.................................................................. 675 675
------- -------
Total real estate loans (2)................................................ 50,191 50,214
Other loans (3)............................................................ 2,426 2,952
------- -------
Total non-performing loans................................................. 52,617 53,166
Real estate owned net (4).................................................. 9,340 8,155
------- -------
Total non-performing assets................................................ $61,957 $61,321
======= =======
Non-performing loans to total gross loans.................................. 1.53% 1.70%
Non-performing assets to total assets...................................... 1.08 1.14
Non-performing assets to total stockholders' equity and
allowance for possible loan 11.08 11.09
losses...........................................
Allowance for possible loan losses to non-performing loans................. 63.64 63.79
Allowance for possible loan losses to total gross loans............... 0.97 1.08
(1) All non-performing loans are in non-accrual status. There are no loans
90 days or more past due and still accruing interest(other than education
loans which are guaranteed).
(2) Includes loans considered impaired in accordance with SFAS 114 in the
amount of $7.0 million and $7.4 million at December 31, 1996 and September
30, 1996,respectively, for which there is a related allowance for possible
loan losses.
(3) Includes commercial loans considered impaired in accordance with SFAS 114
in the amount of $0.3 million at both December 31, 1996 and September 30,
1996,respectively, for which there is a related allowance for possible loan
losses.
(4) Included in Investment in real estate on the Consolidated Statements of
Financial Condition.
Interest Sensitive Gap Analysis
The following table sets forth the amounts of interest-earning assets and
interest-bearing liabilities outstanding at December 31, 1996, which are
anticipated by the Company, based upon certain assumptions, to reprice or mature
in each of the future time periods shown. Except as stated below, the amounts of
assets and liabilities shown to reprice or mature during a particular period
were determined in accordance with the earlier of term to repricing or the
contractual terms of the asset or liability. Prepayment assumptions ranging from
0% to 15% per year were applied, dependent upon the loan type and coupon.
Run-off rate assumptions for passbook savings, statement savings, NOW and money
market accounts, in the one year or less category, were 51%, 51%, 40% and 100%
respectively, rather than the OTS assumptions which, in the one year or less
period, are 17%, 17%, 37% and 79%, respectively. These withdrawal rates and
prepayment assumptions are based on assumptions and analyses prepared internally
and are used in preparing the Regulatory Thrift Bulletin-13 Report and the
quarterly management reports. These assumptions were used rather than the
assumptions published by the OTS because management believes they are more
indicative of the actual prepayments and withdrawals experienced by the Company.
The assumptions do not reflect any increases or decreases in interest rates paid
on various categories of deposits (whether by the Company or in general) since
December 31, 1996.
INTEREST RATE SENSITIVITY GAP ANALYSIS
AT DECEMBER 31, 1996
------------------------------------------------------------------------------------------------
MORE THAN MORE THAN MORE THAN MORE THAN
3 MONTHS 3 MONTHS 6 MONTHS 1 YEAR 3 YEARS MORE THAN
OR LESS TO 6 MONTHS TO 1 YEAR TO 3 YEARS TO 5 YEARS 5 YEARS TOTAL
----------- ----------- ---------- ------------ ----------- ----------- ---------------
(DOLLARS IN THOUSANDS)
Interest-earning assets(1):
Real estate loans (2) $ 223,481 $ 414,005 $ 740,105 $1,231,434 $ 288,450 $ 351,021 $ 3,248,496
Commercial loans (2) 7,217 --- --- --- 115 --- 7,332
Other loans (2) 65,048 3,222 6,379 22,827 16,212 34,123 147,811
Mortgage-backed 335,680 313,068 528,057 426,359 71,439 49,818 1,724,421
securities (3)
Interest-earning cash 110,429 --- --- --- --- --- 110,429
equivalents
Debt and equity 33,278 5,182 33,006 15,074 1,410 77,779 165,729
securities (3)
Stock in FHLB-NY --- --- --- --- --- 40,754 40,754
---------- ---------- ---------- ---------- --------- ---------- ---------------
Total interest-earning 775,133 735,477 1,307,547 1,695,694 377,626 553,495 5,444,972
assets
Interest-bearing liabilities:
Passbook accounts 121,229 96,660 114,948 105,692 101,288 110,783 650,600
Statement savings 120,508 95,968 114,126 104,928 100,556 109,993 646,079
accounts
NOW accounts 37,611 4,830 9,660 38,640 37,030 1,637 129,408
Checking & demand deposit
accounts 2,813 1,205 2,410 --- --- --- 6,428
Money market accounts 81,932 15,364 30,728 --- --- --- 128,024
Certificate accounts 505,983 424,865 430,801 358,067 240,662 22,776 1,983,154
Borrowings 349,550 150,000 160,400 741,000 --- --- 1,240,550
----------- ---------- ---------- -------- --------- ------------ ---------------
Total interest-bearing 1,219,626 788,892 863,073 1,348,327 479,536 245,189 4,784,243
liabilities
---------- ---------- ---------- --------- --------- ------------ ---------------
Interest sensitivity gap per $ (444,493) $ (53,415) $ 444,474 $ 347,367 $ (101,910) $ 308,306 $ 660,729
period
=========== ========== ========== ========= ========= ============ ===============
Cumulative interest $ (444,493) $ (497,908) $ (53,434) $ 293,933 $ 192,023 $ 500,329
sensitivity gap
=========== ========== ========== ========= ========= ============
Cumulative interest
sensitivity gap as a
percentage of total (7.72) % (8.65) % (0.93) % 5.10 % 3.33 % 8.69 %
assets (4)
Cumulative net interest-
earning assets as a
percentage of net
interest-bearing 63.55 75.21 98.14 106.97 104.09 110.12
liabilities
- ------------------
(1) Excludes non-performing loans, net of unearned discounts and premiums,
deferred loan fees, purchase accounting discounts and premiums.
(2) For purposes of gap analysis, the allowance for possible loan losses is
excluded.
(3) Mortgage-backed and debt and equity securities are shown excluding the
market value appreciation of $15.7 million, before tax, resulting from SFAS
115.
(4) Amounts for fixed rate loans are based on scheduled payment dates and loans
for which there is no amortization schedule are included as three months or
less.
PART II - OTHER INFORMATION
Item 1. Legal Proceedings
None.
Item 2. Changes in Securities.
None.
Item 3. Defaults Upon Senior Securities.
None.
Item 4. Submission of Matters to a Vote of Security Holders.
None.
Item 5. Other Information.
None.
Item 6. Exhibits and Reports on Form 8-K.
(a) Exhibits - The following exhibit is filed as part of this
report:
Regulation S-K Exhibit Reference Number
11. Statement re: Computation of Per Share Earnings
(In thousands, except per share data)
Three Months Ended
December 31,
-------------------------------
1996 1995
--------------- ------------
Net Income $ 11,934 $ 11,621
=============== ============
Total weighted average common shares and
equivalents outstanding 23,775 24,655
=============== ============
Primary earnings per common share $ 0.50 $ 0.47
=============== ============
Total shares for fully dilutive earnings per 23,849 24,717
share
=============== ============
Fully diluted earnings per common share $ 0.50 $ 0.47
=============== ============
(b) Reports on Form 8-K
On October 22, 1996 and December 19, 1996, the Company filed with
the SEC Current Reports on Form 8-K which contained press
releases. The October press release announced the Company's
earnings for the three months ended September 30, 1996. The
December press release announced the declaration of the Company's
ninth consecutive quarterly dividend.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
Long Island Bancorp, Inc.
Dated: By: /s/John J. Conefry, Jr.
---------- ----------------------
John J. Conefry, Jr.
Chairman of the Board and
Chief Executive Officer
Dated: By: /s/Mark Fuster
----------- -------------------
Mark Fuster
Chief Financial Officer