SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities and Exchange Act of 1934
Date of Report (Date of earliest event reported)
April 22, 1997
Long Island Bancorp, Inc.
(Exact Name of Registrant as Specified in its Charter)
Delaware 0-23526 11-3198508
(State or Other Jurisdiction (Commission File (I.R.S. Employer
of Incorporation) Number) Identification No.)
201 Old Country Road
Melville, New York 11747-2724
(Address of Principal (Zip Code)
Executive Offices)
Registrant's telephone number, including area code (516) 547-2000
Not Applicable
(Former Name of Former Address, if Changed Since Last Report)
Item 1. Changes in Control Registrant
Not Applicable
Item 2. Acquisition or Disposition of Assets
Not Applicable
Item 3. Bankruptcy or Receivership
Not Applicable
Item 4. Changes in Registrant's Certifying Accountant
Not Applicable
Item 5. Other Events
Press Release of Long Island Bancorp, Inc.
dated April 22, 1997
Item 6. Resignations of Registrant's Directors
Not Applicable
Item 7. Financial Statements and Exhibits
(a) Not Applicable
SIGNATURE
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 hereunto duly authorized.
LONG ISLAND BANCORP, INC.
By:/s/ Mark Fuster
------------------
Name: Mark Fuster
Title: Chief Financial Officer
(principal financial and
accounting officer)
Date: April 23, 1997
LONG ISLAND BANCORP, INC. NEWS RELEASE
201 Old Country Road
Melville, New York 11747
Contact:
Mary M. Feder
Vice President, Investor Relations
516-547-2607
LONG ISLAND BANCORP, INC. REPORTS SECOND QUARTER EARNINGS
Melville, New York, April 22, 1997 - Long Island Bancorp, Inc. (NASDAQ:
LISB), the holding company for The Long Island Savings Bank, FSB today reported
net income of $12.1 million, an increase of $0.8 million, or 7.6%, for the
second quarter ended March 31, 1997 compared with $11.3 million for the second
quarter of 1996. For the six months ended March 31, 1997, net income totaled
$24.1 million, an increase of $1.2 million, or 5.1%, from the $22.9 million
earned in 1996. Earnings per share for the three and six month periods in 1997
were $0.51 and $1.01, respectively, compared with $0.46 and $0.93 for the same
periods in 1996.
Commenting on the financial performance this quarter, John J. Conefry,
Jr., Chairman of the Board and Chief Executive Officer stated, "For the three
months ended March 31, 1997 we reported our highest quarterly net income and
earnings per share since our conversion to a publicly held company. In an
environment of continued interest rate compression we further leveraged our
strong equity position resulting in an increase in net interest income over the
prior year. Our general and administrative expenses benefited from the
reductions in our deposit insurance costs and retirement plan expenses. These
savings were partially offset during the quarter by higher costs associated with
the expansion of our mortgage business and the continuing cost of upgrading our
systems technology which we believe will position us favorably for continued
future earnings growth."
EARNINGS SUMMARY FOR THE QUARTER ENDED MARCH 31, 1997
The Company's net interest income increased by $2.0 million to $40.1
million for the quarter ended March 31, 1997 compared with the 1996 quarter. The
increase in net interest income is attributable to the growth of the average
real estate loan portfolio to $3.3 billion for the 1997 quarter from $2.1
billion for the 1996 quarter. This growth was funded primarily by a $838.3
million increase in average borrowed funds and a $357.5 million reduction in the
average MBS portfolio. The net interest margin declined to 2.90% in the 1997
quarter from 3.29% in the 1996 quarter primarily due to higher funding costs
related to borrowed funds and a flattening of the yield curve which resulted in
lower yields on average real estate loans.
The provision for possible loan losses remained constant at $1.5
million for the quarters ended March 31, 1997 and 1996. Non-performing loans
decreased by $3.9 million to $51.4 million at March 31, 1997. This decline,
coupled with the growth in the gross loan portfolio, resulted in improvements in
the Company's asset quality ratios. Non-performing loans to gross loans was
1.44% at March 31, 1997, down from 2.33% in 1996 and the allowance for possible
loan losses to non-performing loans was 66.07% up from 62.13% in 1996.
Total non-interest income decreased by $0.2 million, or 2.7%, to $8.7
million for the quarter ended March 31, 1997 compared with the 1996 quarter.
This decline is attributable to reductions of $0.2 million in the net gains on
sale activity and $0.2 million in the net gain on investment in real estate and
premises, offset by greater loan fees and service charges and income from
insurance and securities commissions in the 1997 quarter.
Total G&A expense declined by $0.4 million from the quarter ended
December 31, 1996, however, these expenses increased by $1.0 million to $26.9
million for the quarter ended March 31, 1997 compared with the quarter ended
March 31, 1996. Contributing to the increase are additional compensation and
benefit costs, office occupancy and equipment costs and other G&A expenses.
Compensation and benefit costs increased by $1.2 million due to greater sales
commission expense resulting from increased mortgage volume and the June 1996
acquisition of two mortgage origination offices of Fleet Mortgage Company and
the August 1996 acquisition of First Home Mortgage of Virginia, Inc. Office
occupancy and equipment costs increased $0.8 million primarily reflecting the
Company's continued technological investments to improve its information and
communication systems and occupancy costs for the additional loan offices opened
in the last year. Other G&A expenses increased $0.6 million due to additional
expenditures related to the increase in mortgage origination volume and the
ongoing legal costs associated with the goodwill litigation. The effect of these
increases on total G&A expense was partially mitigated by the reduction in
federal insurance premiums of $1.5 million resulting from recent BIF/SAIF
legislation and reductions in our retirement plan costs of $0.8 million.
Income tax expense decreased to $8.2 million due to the decline in the
effective tax rate to 40.2% for the quarter ended March 31, 1997 from 42.3% for
the quarter ended March 31, 1996. The decline in the effective tax rate
principally reflects changes in the New York State and New York City tax bad
debt regulations the effect of which more than offset the increase in pre-tax
income.
EARNINGS SUMMARY FOR THE SIX MONTHS ENDED MARCH 31, 1997
Net interest income increased by $3.9 million, or 5.0%, to $80.4
million during the six months ended March 31, 1997 compared with the same period
in 1996. The increase in net interest income is attributable to the growth of
the average real estate loan portfolio to $3.2 billion for the six months ended
March 31, 1997 from $2.0 billion for the same period in 1996. This growth was
funded primarily by a $691.5 million increase in average borrowed funds and a
$440.1 million reduction in the average MBS portfolio. The net interest margin
declined to 2.98% in the 1997 period from 3.30% in the 1996 period for the
reasons mentioned in the discussion of the quarter ended March 31, 1997.
The provision for possible loan losses declined by $0.1 million, or
3.2%, reflecting management's assessment of the stable level of non-performing
assets.
Total non-interest income declined by $0.7 million, or 3.6%, for the
six months ended March 31, 1997 compared with the 1996 period. This change is
primarily due to a reduction in the net gain (loss) on investment in real estate
and premises which was partially offset by increases in total fees and other
income and total net gains on sale activity. Net gain (loss) on investment in
real estate and premises declined to a loss of $1.1 million for the 1997 period
from a gain of $1.8 million for the 1996 period primarily reflecting the sale of
investment properties that occurred during 1996. Total fees and other income
increased by $1.2 million to $14.3 million for the 1997 period compared with the
1996 period. This increase was generated by greater loan fees and service
charges of $0.5 million, loan servicing fees of $0.3 million and income from
insurance and securities commissions of $0.3 million.
Total G&A expense increased by $2.5 million, or 4.8%, to $54.2 million
for the six months ended March 31, 1997 compared with the same period in 1996.
Contributing to this increase were additional expenditures for compensation and
benefit costs of $2.1 million, office occupancy and equipment costs of $1.2
million and other G&A expenses of $1.1 million. These expense increases
primarily stem from the growth in mortgage origination volume which has nearly
doubled in the 1997 period compared with the 1996 period coupled with the
technological improvements discussed earlier. Compensation and benefit costs
also increased due to the appreciation of the Company's common stock and its
direct impact on stock-based compensation expense. The effect of these increases
was partially offset by the $1.8 million reduction in federal insurance premiums
due to the legislation discussed earlier and the reduction in our retirement
plan costs.
Income tax expense decreased to $16.4 million for the six months ended
March 31, 1997 due to a 18 basis point decline in the effective tax rate to
40.6% for the 1997 period principally as a result of changes in the New York
State and New York City tax bad debt regulations the effect of which more than
offset the increase in pre-tax income.
BALANCE SHEET SUMMARY
Total assets at March 31, 1997 were $5.8 billion, an increase of $450.5
million from the amount reported at September 30, 1996. The growth in assets is
predominantly attributable to an increase of $420.4 million in total loans
receivable held for investment. Loan volume for the six months ended March 31,
1997 was $1.3 billion (of which $193.7 million represents bulk purchases of
loans), an improvement of $529.3 million over the 1996 period.
The increase in total liabilities primarily reflects an increase in
borrowed funds of $467.2 million to $1.4 billion and a marginal increase in
deposit liabilities of $34.2 million to $3.7 billion at March 31, 1997.
Stockholders' equity increased by $4.8 million to $523.9 million during
the six months ended March 31, 1997. The increase consists of earnings of $24.1
million and $4.0 million related to the Company's stock benefit plans. These
increases were partially offset by the net purchase of treasury stock of $14.8
million, the declaration of $6.7 million in dividends and a decline of $1.8
million, net of tax, in unrealized gains on securities classified as
available-for-sale. At March 31, 1997 book value per share amounted to $21.62.
Certain reclassifications have been made to prior year amounts to
conform to the current year presentation.
Long Island Bancorp, Inc. is the holding company for The Long Island
Savings Bank, FSB. The Long Island Savings Bank, FSB is a federally chartered
FDIC-insured institution which serves its customers through 36 full service
branch offices throughout Queens, Nassau and Suffolk counties. The Bank also
operates mortgage loan offices across Long Island and in Connecticut, Delaware,
Georgia, Maryland, New Jersey, North Carolina, Pennsylvania and Virginia,
and maintains an Internet home page at the address: http: //www.lisb.com.
(Financial tables attached)
This document may contain 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, changes in interest rates, deposit flows, the cost
of funds, cost of federal deposit insurance premiums, cost of stock-based
benefit plans, 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, regulatory and technological
factors affecting the Company's operations, products, services and prices.
Additional factors are described in the Company's public reports filed with the
Securities and Exchange Commission.
LONG ISLAND BANCORP, INC.
AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(In thousands, except share data)
MARCH 31, SEPTEMBER
30,
1997 1996
--------------- ---------------
ASSETS
Cash and cash equivalents (including interest-earning assets of
$93,841 and $37,357, respectively) $ 129,700 $ 76,348
Investment in debt and equity securities, net:
Available-for-sale 162,998 180,650
Mortgage-backed securities, net:
Held-to-maturity (estimated fair value of
$20,706 and $21,120, respectively) 22,818 23,096
Available-for-sale 1,669,924 1,717,106
Stock in Federal Home Loan Bank of New York, at cost 48,724 40,754
Loans held for sale, net 93,516 57,969
Loans receivable held for investment, net:
Real estate loans, net 3,334,448 2,921,285
Commercial loans, net 7,854 7,810
Other loans, net 152,919 145,654
--------------- ---------------
Loans, net 3,495,221 3,074,749
Less allowance for possible loan losses (33,954) (33,912)
--------------- ---------------
Total loans receivable held for investment, net 3,461,267 3,040,837
Mortgage servicing rights, 37,499 29,687
net
Office properties and equipment, net 89,903 89,279
Accrued interest receivable, net 34,300 32,962
Investment in real estate, net 11,620 10,680
Deferred taxes 20,560 31,207
Excess of cost over fair value of assets acquired 5,046 5,265
Prepaid expenses and other assets 26,421 27,951
--------------- ---------------
Total assets $ 5,814,296 $ 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 $ 3,667,184 $ 3,633,010
Official checks outstanding 24,350 49,860
Borrowed funds 1,445,233 978,023
Mortgagors' escrow liabilities 77,218 64,232
Accrued expenses and other liabilities 76,458 119,572
--------------- ---------------
Total liabilities 5,290,443 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, 24,228,267 and 24,644,157
outstanding, respectively) . 268 268
Additional paid-in capital 306,581 304,027
Unallocated Employee Stock Ownership Plan (18,465) (19,230)
Unearned Management Recognition & Retention Plan (4,537) (5,551)
Unrealized gain on securities available-for-sale, net of tax 4,811 6,633
Retained income-partially restricted 301,838 285,311
Treasury stock, at cost (2,588,197 and 2,172,307 shares, (66,643) (52,364)
respectively)
--------------- ---------------
Total stockholders' equity 523,853 519,094
--------------- ---------------
Total liabilities and stockholders' equity $ 5,814,296 $ 5,363,791
=============== ===============
LONG ISLAND BANCORP, INC.
AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
FOR THE THREE MONTHS ENDED FOR THE SIX MONTHS ENDED
MARCH 31, MARCH 31,
----------------------------------------------------------
1997 1996 1997 1996
------------- ------------- ------------- -------------
Interest income:
Real estate loans $ 61,906 $ 41,349 $ 121,064 $ 81,021
Commercial loans 152 181 330 390
Other loans 3,758 3,632 7,663 7,280
Mortgage-backed securities 29,509 36,555 58,508 75,251
Debt and equity securities 3,942 3,845 7,672 8,347
------------- ------------- ------------- -------------
Total interest income 99,267 85,562 195,237 172,289
------------- ------------- ------------- -------------
Interest expense:
Deposits 38,839 38,937 78,276 78,358
Borrowed funds 20,298 8,506 36,575 17,401
------------- ------------- ------------- -------------
Total interest expense 59,137 47,443 114,851 95,759
------------- ------------- ------------- -------------
Net interest income 40,130 38,119 80,386 76,530
Provision for possible loan losses 1,500 1,500 3,000 3,100
------------- ------------- ------------- -------------
Net interest income after provision for possible 38,630 36,619 77,386 73,430
loan losses
Non-interest income:
Fees and other income
Loan fees and service charges 890 736 1,895 1,436
Loan servicing fees 3,108 3,100 6,490 6,157
Income from insurance and securities commissions 590 471 1,098 798
Deposit service fees 1,413 1,496 2,941 2,956
------------- ------------- ------------- -------------
Total fee income 6,001 5,803 12,424 11,347
Other income 997 1,039 1,859 1,700
------------- ------------- ------------- -------------
Total fees and other income 6,998 6,842 14,283 13,047
Net gains on sale activity:
Net gains on loans and mortgage-backed securities 2,263 2,497 4,238 3,122
Net gains on investment in debt and equity securities --- --- 98 259
------------- ------------- ------------- -------------
Total net gains on sale activity 2,263 2,497 4,336 3,381
Net (loss) gain on investment in real estate and premises (570) (403) (1,085) 1,764
------------- ------------- ------------- -------------
Total non-interest income 8,691 8,936 17,534 18,192
Non-interest expense:
General and administrative expense:
Compensation, payroll taxes and fringe benefits 14,832 13,625 28,960 26,902
Advertising 1,089 1,216 2,344 2,431
Office occupancy and equipment 5,567 4,795 10,963 9,729
Federal insurance premiums 777 2,259 2,682 4,476
Other general and administrative expense 4,671 4,064 9,295 8,206
------------- ------------- ------------- -------------
Total general and administrative expense 26,936 25,959 54,244 51,744
Amortization of excess of cost over fair value of assets 109 63 218 127
acquired.....................
------------- ------------- ------------- -------------
Total non-interest expense 27,045 26,022 54,462 51,871
------------- ------------- ------------- -------------
(Loss) income before income taxes 20,276 19,533 40,458 39,751
Provision for income tax (benefit) expense 8,159 8,271 16,407 16,868
------------- ------------- ------------- -------------
Net (loss) income $ 12,117 $ 11,262 $ 24,051 $ 22,883
============= ============= ============= =============
Primary (loss) earnings per common share $ 0.51 $ 0.46 $ 1.01 $ 0.93
============= ============= ============= =============
Fully diluted (loss) earnings per common share $ 0.51 $ 0.46 $ 1.01 $ 0.93
============= ============= ============= =============
LONG ISLAND BANCORP, INC.
AND SUBSIDIARY
AVERAGE BALANCE SHEET
FOR THE THREE MONTHS ENDED MARCH 31,
----------------------------------------------------------------------------------
1997 1996
---------------------------------------- ----------------------------------------
AVERAGE AVERAGE
AVERAGE YIELD\ AVERAGE YIELD\
BALANCE INTEREST COST BALANCE INTEREST COST
------------- ------------ ----------- -------------- ------------ -----------
(DOLLARS IN THOUSANDS)
INTEREST-EARNING ASSETS
Interest-earning cash
equivalents $ 73,877 $ 954 5.24 % $ 25,473 $ 340 5.37 %
Debt and equity securities
and FHLB-NY stock, net (1) 211,536 2,988 5.65 255,346 3,505 5.49
Mortgage-backed securities, 1,768,605 29,509 6.67 2,126,070 36,555 6.88
net (1)
Real estate loans, net (2) 3,337,036 61,906 7.42 2,101,856 41,349 7.87
Commercial and other loans, 145,675 3,910 10.74 122,971 3,813 12.40
net (2)
------------- ------------ -------- -------------- ------------ ---------
Total interest-earning assets 5,536,729 99,267 7.17 4,631,716 85,562 7.39
Other non-interest-earning 264,862 266,569
assets
------------- ------------ -------------- ------------
Total assets $ 5,801,591 $ 99,267 $ 4,898,285 $ 85,562
============= ============ ============== ============
INTEREST BEARING LIABILITIES
Deposits, net $ 3,707,237 $ 38,839 4.25 % $ 3,642,558 $ 38,937 4.30 %
Borrowed funds 1,443,332 20,298 5.70 605,028 8,506 5.65
------------- ------------ -------- -------------- ------------ ---------
Total interest-bearing 5,150,569 59,137 4.66 4,247,586 47,443 4.49
liabilities
Non-interest-bearing 125,265 117,979
liabilities
------------- --------------
Total liabilities 5,275,834 4,365,565
Total stockholders' equity 525,757 532,720
------------- ------------ -------- -------------- ------------ ---------
Total liabilities and
stockholders'
equity $ 5,801,591 $ 59,137 $ 4,898,285 $ 47,443
============= ------------ ============== ------------
Net interest income/spread $ 40,130 2.51 % $ 38,119 2.90 %
(3)
============ ======== ============ =========
Net interest margin as %
of interest-earning 2.90 % 3.29 %
assets (4)
======== =========
Ratio of interest-earning
assets to
interest-bearing 107.50 % 109.04 %
liabilities
======== =========
(1) Debt and equity and mortgage-backed securities are shown including the
average market value appreciation of $15.0 million and $26.4 million for the
three months ended March 31, 1997 and 1996, 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.
LONG ISLAND BANCORP, INC.
AND SUBSIDIARY
AVERAGE BALANCE SHEET
FOR THE SIX MONTHS ENDED MARCH 31,
----------------------------------------------------------------------------------
1997 1996
---------------------------------------- ----------------------------------------
AVERAGE AVERAGE
AVERAGE YIELD\ AVERAGE YIELD\
BALANCE INTEREST COST BALANCE INTEREST COST
------------- ------------ ----------- -------------- ------------ -----------
(DOLLARS IN THOUSANDS)
INTEREST-EARNING ASSETS
Interest-earning cash
equivalents $ 66,453 $ 1,720 5.19 % $ 31,348 $ 859 5.48 %
Debt and equity securities
and FHLB-NY stock, net (1) 213,439 5,952 5.58 269,061 7,488 5.57
Mortgage-backed securities, 1,740,582 58,508 6.72 2,180,640 75,251 6.90
net (1)
Real estate loans, net (2) 3,238,351 121,064 7.48 2,031,683 81,021 7.98
Commercial and other loans, 143,715 7,993 11.12 118,657 7,670 12.93
net (2)
------------- ------------ -------- -------------- ------------ ---------
Total interest-earning assets 5,402,540 195,237 7.23 4,631,389 172,289 7.44
Other non-interest-earning 284,191 260,792
assets
------------- ------------ -------------- ------------
Total assets $ 5,686,731 $ 195,237 $ 4,892,181 $ 172,289
============= ============ ============== ============
INTEREST BEARING LIABILITIES
Deposits, net $ 3,728,301 $ 78,276 4.21 % $ 3,641,281 $ 78,358 4.30 %
Borrowed funds 1,294,647 36,575 5.67 603,145 17,401 5.77
------------- ------------ -------- -------------- ------------ ---------
Total interest-bearing 5,022,948 114,851 4.59 4,244,426 95,759 4.51
liabilities
Non-interest-bearing 135,770 118,905
liabilities
------------- --------------
Total liabilities 5,158,718 4,363,331
Total stockholders' equity 528,013
------------- ------------ -------- -------------- ------------ ---------
Total liabilities and
stockholders'
equity $ 5,686,731 $ 114,851 $ 4,892,181 $ 95,759
============= ------------ ============== ------------
Net interest income/spread $ 80,386 2.64 % $ 76,530 2.93 %
(3)
============ ======== ============ =========
Net interest margin as %
of interest-earning 2.98 % 3.30 %
assets (4)
======== =========
Ratio of interest-earning
assets to
interest-bearing 107.56 % 109.12 %
liabilities
======== =========
(1) Debt and equity and mortgage-backed securities are shown including the
average market value appreciation of $15.5 million and $19.9 million for the
six months ended March 31, 1997 and 1996, 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.
LONG ISLAND BANCORP, INC.
AND SUBSIDIARY
FINANCIAL HIGHLIGHTS
At or for the Three Months At or for the Six Months
Ended March 31, Ended March 31,
---------------------------------- ----------------------------------
1997 1996 1997 1996
-------------- --------------- --------------- ---------------
Selected Financial Ratios: (a)
Return on average assets 0.84% 0.92% 0.85% 0.94%
Return on average stockholders' equity 9.22 8.46 9.11 8.65
Average stockholders' equity to average assets 9.06 10.88 9.29 10.81
Stockholders' equity to total assets 9.01 10.69 9.01 10.69
Interest rate spread during period 2.51 2.90 2.64 2.93
Net interest margin 2.90 3.29 2.98 3.30
Operating expenses to average assets 1.86 2.12 1.91 2.12
Efficiency ratio 57.16 57.74 57.30 57.76
Average interest-earning assets to average
interest-bearing liabilities 107.50 109.04 107.56 109.12
Net interest income to operating expenses 1.49x 1.47x 1.48x 1.48x
Selected Data:
Primary earnings per share $0.51 $0.46 $1.01 $0.93
Weighted average number of shares outstanding
for primary earnings per share computation 23,722,564 24,420,626 23,749,765 24,540,013
Fully diluted earnings per share $0.51 $0.46 $1.01 $0.93
Weighted average number of shares outstanding
for fully diluted earnings per share 23,722,720 24,471,897 23,752,542 24,623,860
computation
Book value per share $21.62 $20.79 $21.62 $20.79
Number of shares outstanding for book value per
share computation 24,228,267 24,858,699 24,228,267 24,858,699
Cash dividends declared per share $0.15 $0.10 $0.30 $0.20
Dividend payout ratio 29.41% 21.74% 29.70% 21.51%
At March 31,
----------------------------
1997 1996
------------ -----------
Asset Quality Ratios:
Non-performing loans to total gross loans 1.44% 2.33%
Non-performing assets to total assets 1.04 1.31
Allowance for possible loan losses to non-performing loans 66.07 62.13
Regulatory Capital at March 31, 1997 for The Long Island Savings Bank, FSB:
Regulatory Regulatory Excess
Capital Capital Capital
Requirement Level Level
Amount Percent Amount Percent Amount Percent
(Dollars in thousands)
Tangible capital $ 86,038 1.50% $424,120 7.39% $338,082 5.90%
Core capital 172,076 3.00 424,120 7.39 252,044 4.40
Risk-based capital 245,251 8.00 458,073 14.94 212,822 6.94
(a) Ratios for the three and six months ended March 31, 1997 and 1996 were
calculated on an annualized basis.
LONG ISLAND BANCORP, INC.
AND SUBSIDIARY
SUPPLEMENTAL INFORMATION
SELECTED FINANCIAL DATA - CASH EARNINGS
Three Months Ended March 31, Six Months Ended
March 31,
------------------------------ --------------------------------
1997 1996 1997 1996
-------------- --------------- ------------- --------------
(In thousands, except per share data)
Net income....................................................$ 12,117 $ 11,262 $ 24,051 $ 22,883
Add back selected non-cash items:
Amortization of excess of cost over fair value
of assets acquired................................... 109 63 219 127
Management Recognition & Retention Plan and
Employee Stock Ownership Plan expense................ 1,506 1,620 3,644 2,981
-------------- --------------- -------------- ---------------
Cash earnings.................................................$ 13,732 $ 12,945 $ 27,914 $ 25,991
============== =============== ============== ===============
Cash EPS......................................................$ 0.58 $ 0.53 $ 1.18 $ 1.06
============== =============== ============== ===============
At or for the Three Months At or for the Six Months
Ended March 31, Ended March 31,
--------------------------------- --------------------------------
1997 1996 1997 1996
-------------- -------------- -------------- ---------------
Selected Financial Ratios Based Upon Cash Earnings (a):
Cash return on average assets................................. 0.95% 1.06% 0.98% 1.06%
Cash return on average stockholders' equity................... 10.45 9.72 10.57 9.83
Cash return on average tangible stockholders' equity.......... 10.55 9.77 10.68 9.88
Cash operating expenses to average assets..................... 1.75 1.98 1.77 1.99
Cash efficiency ratio......................................... 53.73 53.99 53.22 54.30
Net interest income to cash operating expenses................ 1.58x 1.57x 1.60 1.57
(a) Ratios for the three and six months ended March 31, 1997 and 1996 were
calculated on an annualized basis.