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)
July 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 July 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: July 22, 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 THIRD QUARTER EARNINGS
Melville, New York, July 22, 1997 - Long Island Bancorp, Inc. (NASDAQ:
LISB), the holding company for The Long Island Savings Bank, FSB today reported
net income of $12.4 million, an increase of $1.1 million, or 10.0%, for the
quarter ended June 30, 1997 compared with $11.3 million for the comparable 1996
quarter. For the nine months ended June 30, 1997, the Company reported net
income of $36.5 million, an increase of $2.3 million, or 6.7%, from the $34.2
million earned in 1996. Earnings per share for the three and nine month periods
in 1997 were $0.53 and $1.54, respectively, compared with $0.47 and $1.40 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, "The Company
continues to report record quarterly earnings and an overall solid financial
performance. During the quarter, we successfully completed a $1.0 billion
medium-term note credit facility which will provide additional funding
availability and flexibility. The Bank obtained an investment grade rating which
will permit borrowing at favorable rates compared with funding alternatives."
EARNINGS SUMMARY FOR THE QUARTER ENDED JUNE 30,1997
- ---------------------------------------------------
The Company's net interest income increased by $0.9 million to $40.0
million for the quarter ended June 30, 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 $3.4 billion for the 1997 quarter from $2.6
billion for the 1996 quarter. This growth was funded by a $693.0 million
increase in average borrowed funds, a $58.8 million increase in average deposits
and a $41.1 million reduction in the average MBS portfolio.
The net interest margin declined to 2.88% in the 1997 quarter from
3.29% in the 1996 quarter. The decline in the net interest margin is due to
additional leveraging of the Company's capital base resulting in higher overall
funding costs. Further contributing to the lower interest margin was a
flattening of the yield curve which resulted in lower yields on average real
estate loans. During the quarter ended June 30, 1997, the Bank issued a five
year fixed rate note in the amount of $300.0 million and simultaneously entered
into an interest rate swap agreement for a similar notional amount. The swap
agreement converted the fixed rate interest obligation of 7% into a variable
rate of LIB0R minus 3 basis points. The Bank has the ability to borrow up to a
total of $1.0 billion under the medium-term debt credit facility.
The provision for possible loan losses was reduced by $0.1 million to
$1.5 million for the quarter ended June 30, 1997, from $1.6 million for the 1996
quarter. Non-performing loans remained stable at approximately $53.3 million at
June 30, 1997 and 1996. The ratio of non-performing loans to gross loans
improved to 1.47% at June 30, 1997, from 1.81% in 1996 and the allowance for
possible loan losses to non-performing loans decreased marginally to 63.10%,
from 64.50% in 1996.
Total non-interest income decreased $0.3 million, or 3.2%, to $9.9
million for the quarter ended June 30, 1997 compared with the 1996 quarter. This
decline is attributable to reductions of $0.7 million in fee income, $0.3
million in other income and $0.3 million in gains on investment in real estate
and premises, offset by an increase in gains of $0.9 million on the sale of
loans and mortgage-backed securities for the quarter ended June 30, 1997. The
$0.6 million decline in loan service fee income resulted from declining balances
of home equity loans previously securitized. Other income declined as a result
of a decrease of $0.3 million in income from secondary marketing and real estate
investments and premises gains decreased by $0.3 million primarily from the
decline in rental income related to investment properties sold during 1996.
Total General and Administrative expense declined by $0.5 million, to
$28.0 million for the quarter ended June 30, 1997 compared with the 1996
quarter. This change was primarily due to the reduction in federal insurance
premiums of $1.5 million resulting from recent BIF/SAIF legislation and a
reduction in advertising expense of $0.6 million. The effect of these decreases
was partially offset by incremental operating costs stemming from the June and
August 1996 acquisitions of mortgage origination offices of Fleet Mortgage
Company and First Home Mortgage of Virginia, Inc., respectively.
Income tax expense remained constant at $7.9 million due to the decline
in the effective tax rate to 38.8% for the quarter ended June 30, 1997 from
41.2% for the 1996 quarter. 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 $1.1 million increase in
pre-tax income.
EARNINGS SUMMARY FOR THE NINE MONTHS ENDED JUNE 30, 1997
- --------------------------------------------------------
Net interest income increased by $4.8 million, or 4.1%, to $120.4
million during the nine months ended June 30, 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 $3.3 billion for the nine months ended
June 30, 1997 from $2.2 billion for the same period in 1996. This growth was
funded primarily by a $692.1 million increase in average borrowed funds, a $77.6
million increase in average deposits and a $307.6 million reduction in the
average MBS portfolio. The net interest margin declined to 2.94% in the 1997
period from 3.30% in the 1996 period for the reasons mentioned in the discussion
of earnings for the quarter ended June 30, 1997.
The provision for possible loan losses was reduced by $0.2 million, or
4.3%, reflecting management's assessment of the stable level of non-performing
assets.
Total non-interest income declined by $1.0 million, or 3.4%, for the
nine months ended June 30, 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 gains on the sale of loans and mortgage-backed securities. Net gain
(loss) on investment in real estate and premises declined to a loss of $0.3
million for the 1997 period from a gain of $2.9 million for the 1996 period
primarily reflecting the sale of investment properties that occurred during
1996. Total fees and other income increased by $0.3 million to $20.1 million for
the 1997 period compared with $19.8 million in the 1996 period. This increase
was generated by greater loan fees and service charges of $0.4 million and
income from insurance and securities commissions of $0.5 million, partially
offset by lower loan servicing fees and deposit service fees.
Total General and Administrative expense increased by $2.1 million, or
2.6%, to $82.3 million for the nine months ended June 30, 1997 compared with the
same period in 1996. Contributing to this increase were additional expenditures
of $2.8 million for compensation and benefits, office occupancy and equipment
costs of $1.8 million and other G&A expense of $1.5 million. Compensation
expense increased $3.2 million primarily due to the acquisitions discussed
earlier, coupled with higher commission costs stemming from increased loan
volume, which was partially offset by a $0.5 million reduction in expenses
related to the Company's stock benefit plans. The increase in office occupancy
and equipment and other G&A costs reflects the 1996 acquisitions coupled with
Company's investments in technological improvements. The effect of these
increases was partially offset by a $3.3 million reduction in federal insurance
premiums and a $0.7 million reduction in advertising costs.
Income tax expense decreased to $24.3 million for the nine months
ended June 30, 1997 due to a 200 basis point decline in the effective tax rate
to 40.0% 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 June 30, 1997 were $5.9 billion, an increase of $544.3
million since September 30, 1996. The growth in assets is predominantly
attributable to an increase of $482.4 million in total loans receivable held for
investment. Loan volume for the nine months ended June 30, 1997 was $2.1 billion
(of which $221.9 million represents bulk purchases of loans), an increase of
$335.0 million over the 1996 period.
The increase in total liabilities primarily reflects an increase in
borrowed funds of $536.7 million to $1.5 billion and an increase in deposit
liabilities of $73.3 million to $3.7 billion at June 30, 1997.
Stockholders' equity increased by $12.3 million to $531.4 million
during the nine months ended June 30, 1997. The increase consists of earnings of
$36.5 million, an increase in unrealized gains on securities classified as
available-for-sale, net of tax, of $3.2 million and $5.2 million related to the
Company's stock benefit plans. These increases were partially offset by the net
purchase of treasury stock of $22.6 million and the declaration of $10.0 million
in dividends. At June 30, 1997 book value per share amounted to $22.17.
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 35 full
service branch offices throughout Queens, Nassau and Suffolk counties. The
Bank also operates mortgage loan offices across Long Island and Westchester and
in Delaware, Georgia, Maryland, New Jersey, North Carolina, South 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 Company'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)
JUNE 30, SEPTEMBER 30,
1997 1996
--------------- ---------------
ASSETS
------
Cash and cash equivalents (including interest-earning assets of $129,513
and 37,357, respectively) $ 163,470 $ 76,348
Investment in debt and equity securities, net:
Available-for-sale 144,180 180,650
Mortgage-backed securities, net:
Held-to-maturity (estimated fair value of
$20,465 and $21,120, respectively) 22,472 23,096
Available-for-sale 1,698,338 1,717,106
Stock in Federal Home Loan Bank of New York, at cost 48,724 40,754
Loans held for sale, net 87,639 57,969
Loans receivable held for investment, net:
Real estate loans, net 3,381,738 2,921,285
Commercial loans, net 6,381 7,810
Other loans, net 168,725 145,654
--------------- ---------------
Loans, net 3,556,844 3,074,749
Less allowance for possible loan losses (33,623) (33,912)
--------------- ---------------
Total loans receivable held for investment, net 3,523,221 3,040,837
Mortgage servicing rights, net 39,646 29,687
Office properties and equipment, net 89,098 89,279
Accrued interest receivable, net 34,580 32,962
Investment in real estate, net 10,340 10,680
Deferred taxes 17,833 31,207
Excess of cost over fair value of assets acquired 5,183 5,265
Prepaid expenses and other assets 24,013 27,951
--------------- ---------------
Total assets $ 5,908,737 $ 5,363,791
=============== ===============
LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------
Liabilities:
Deposits $ 3,706,260 $ 3,633,010
Official checks outstanding 29,684 49,860
Borrowed funds 1,514,762 978,023
Mortgagors' escrow liabilities 59,685 64,232
Accrued expenses and other liabilities 66,965 119,572
--------------- ---------------
Total liabilities 5,377,356 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, 23,968,303 and 24,644,157 outstanding, respectively) 268 268
Additional paid-in capital 308,479 304,027
Unallocated Employee Stock Ownership Plan (18,249) (19,230)
Unearned Management Recognition & Retention Plan (4,174) (5,551)
Unrealized gain on securities available-for-sale, net of tax 9,890 6,633
Retained income-partially restricted 310,688 285,311
Treasury stock, at cost (2,848,161 and 2,172,307 shares,repectively) (75,521) (52,364)
--------------- ---------------
Total stockholders' equity 531,381 519,094
--------------- ---------------
Total liabilities and stockholders' equity $ 5,908,737 $ 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 NINE MONTHS ENDED
JUNE 30, JUNE 30,
----------------------------------------------------------
1997 1996 1997 1996
------------- ------------- ------------- -------------
Interest income:
Real estate loans $ 63,751 $ 49,680 $ 184,815 $ 130,701
Commercial loans 142 163 472 553
Other loans 3,987 3,714 11,650 10,994
Mortgage-backed securities 28,869 29,970 87,377 105,221
Debt and equity securities 3,667 4,335 11,339 12,682
------------- ------------- ------------- -------------
Total interest income 100,416 87,862 295,653 260,151
------------- ------------- ------------- -------------
Interest expense:
Deposits 39,941 38,427 118,217 116,785
Borrowed funds 20,426 10,296 57,001 27,697
------------- ------------- ------------- -------------
Total interest expense 60,367 48,723 175,218 144,482
------------- ------------- ------------- -------------
Net interest income 40,049 39,139 120,435 115,669
Provision for possible loan losses 1,500 1,600 4,500 4,700
------------- ------------- ------------- -------------
Net interest income after provision for possible
loan losses 38,549 37,539 115,935 110,969
------------- ------------- ------------- -------------
Non-interest income:
Fees and other income:
Loan fees and service charges 764 837 2,659 2,273
Loan servicing fees 2,417 3,058 8,907 9,215
Income from insurance and securities commissions 655 442 1,753 1,240
Deposit service fees 1,275 1,463 4,216 4,419
------------- ------------- ------------- -------------
Total fee income 5,111 5,800 17,535 17,147
Other income 699 968 2,558 2,668
------------- ------------- ------------- -------------
Total fees and other income 5,810 6,768 20,093 19,815
------------- ------------- ------------- -------------
Net gains on sale activity:
Net gains on loans and mortgage-backed securities 3,087 2,195 7,325 5,317
Net gains on investment in debt and equity securities 236 169 334 428
------------- ------------- ------------- -------------
Total net gains on sale activity 3,323 2,364 7,659 5,745
Net gain (loss) on investment in real estate and premises 765 1,098 (293) 2,862
------------- ------------- ------------- -------------
Total non-interest income 9,898 10,230 27,459 28,422
Non-interest expense:
General and administrative expense:
Compensation, payroll taxes and fringe benefits 15,000 14,255 43,988 41,157
Advertising 1,218 1,836 3,562 4,267
Office occupancy and equipment 5,761 5,223 16,724 14,952
Federal insurance premiums 792 2,292 3,474 6,768
Other general and administrative expense 5,261 4,888 14,556 13,094
------------- ------------- ------------- -------------
Total general and administrative expense 28,032 28,494 82,304 80,238
Amortization of excess of cost over fair value of assets
acquired 125 63 343 190
------------- ------------- ------------- -------------
Total non-interest expense 28,157 28,557 82,647 80,428
------------- ------------- ------------- -------------
Income before income taxes 20,290 19,212 60,747 58,963
Provision for income taxes 7,864 7,918 24,271 24,786
------------- ------------- ------------- -------------
Net income $ 12,426 $ 11,294 $ 36,476 $ 34,177
============= ============= ============= =============
Primary earnings per common share $ 0.53 $ 0.47 $ 1.54 $ 1.40
============= ============= ============= =============
Fully diluted earnings per common share $ 0.53 $ 0.47 $ 1.54 $ 1.40
============= ============= ============= =============
LONG ISLAND BANCORP, INC.
AND SUBSIDIARY
AVERAGE BALANCE SHEET
FOR THE THREE MONTHS ENDED JUNE 30,
-----------------------------------------------------------------------------------------
1997 1996
------------------------------------------ --------------------------------------------
AVERAGE AVERAGE
AVERAGE YIELD\ AVERAGE YIELD\
BALANCE INTEREST COST BALANCE INTEREST COST
------------- ------------ ------------- -------------- ------------ ---------------
(DOLLARS IN THOUSANDS)
INTEREST-EARNING ASSETS
Interest-earning cash
equivalents $ 57,452 $ 789 5.50 % $ 36,134 $ 471 5.24 %
Debt and equity securities
and FHLB-NY stock, net(1) 199,213 2,878 5.78 272,201 3,864 5.68
Mortgage-backed securities,
net (1) 1,725,124 28,869 6.69 1,766,240 29,970 6.79
Real estate loans, net (2) 3,428,548 63,751 7.44 2,558,200 49,680 7.77
Commercial and other loans,
net (2) 150,068 4,129 11.01 129,150 3,877 12.01
------------- ------------ ----------- -------------- ------------ ------------
Total interest-earning assets 5,560,405 100,416 7.22 4,761,925 87,862 7.38
Other non-interest-earning assets 210,194 269,453
------------- ------------ -------------- ------------
Total assets $ 5,770,599 $ 100,416 $ 5,031,378 $ 87,862
============= ============ ============== ============
INTEREST BEARING LIABILITIES
Deposits, net $ 3,723,610 $ 39,941 4.30 % $ 3,664,799 $ 38,427 4.22 %
Borrowed funds 1,420,092 20,426 5.77 727,132 10,296 5.70
------------- ------------ ----------- -------------- ------------ ------------
Total interest-bearing
liabilities 5,143,702 60,367 4.71 4,391,931 48,723 4.46
Non-interest-bearing
liabilities 99,339 120,721
------------- --------------
Total liabilities 5,243,041 4,512,652
Total stockholders' equity 527,558 518,726
------------- ------------ ----------- -------------- ------------ ------------
Total liabilities and
stockholders' equity $ 5,770,599 $ 60,367 $ 5,031,378 $ 48,723
============= ------------ ============== ------------
Net interest income/spread (3) $ 40,049 2.51 % $ 39,139 2.92 %
============ =========== ============ ============
Net interest margin as %
of interest-earning assets (4) 2.88 % 3.29 %
=========== ============
Ratio of interest-earning
assets to interest-bearing liabilities 108.10 % 108.42 %
=========== ============
(1) Debt and equity and mortgage-backed securities are shown including the
average market value appreciation of $12.1 million and $7.6 million for the
three months ended June 30, 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 NINE MONTHS ENDED JUNE 30,
-------------------------------------------------------------------------------------
1997 1996
----------------------------------------- ------------------------------------------
AVERAGE AVERAGE
AVERAGE YIELD/ AVERAGE YIELD/
BALANCE INTEREST COST BALANCE INTEREST COST
------------- ----------- ------------- -------------- ----------- -------------
(DOLLARS IN THOUSANDS)
INTEREST-EARNING ASSETS
Interest-earning cash
equivalents $ 63,453 $ 2,509 5.28 % $ 32,938 $ 1,330 5.39 %
Debt and equity securities
and FHLB-NY stock, net (1) 208,697 8,830 5.64 270,104 11,352 5.60
Mortgage-backed securities,
net (1) 1,735,430 87,377 6.71 2,043,011 105,221 6.87
Real estate loans, net (2) 3,301,750 184,815 7.46 2,206,548 130,701 7.90
Commercial and other loans,
net (2) 145,833 12,122 11.08 122,142 11,547 12.61
------------- ----------- ---------- -------------- ----------- -----------
Total interest-earning assets 5,455,163 295,653 7.23 4,674,743 260,151 7.42
Other non-interest-earning
assets 259,526 263,668
------------- ----------- -------------- -----------
Total assets $ 5,714,689 $ 295,653 $ 4,938,411 $ 260,151
============= =========== ============== ===========
INTEREST-BEARING LIABILITIES
Deposits, net $ 3,726,737 $ 118,217 4.24 % $ 3,649,092 116,785 4.27 %
Borrowed funds 1,336,462 57,001 5.70 644,324 27,697 5.74
------------- ----------- ---------- -------------- ----------- -----------
Totalinterest-bearing
liabilities 5,063,199 175,218 4.63 4,293,416 144,482 4.50
Non-interest-bearing liabilities 123,628 119,507
------------- --------------
Total liabilities 5,186,827 4,412,923
Total stockholders' equity 527,862 525,488
------------- ----------- ---------- -------------- ----------- -----------
Total liabilities and
stockholders' equity $ 5,714,689 $ 175,218 $ 4,938,411 $ 144,482
============= ----------- ============== -----------
Net interest income/spread (3) $ 120,435 2.60 % $ 115,669 2.92 %
=========== ========== =========== ===========
Net interest margin as %
of interest-earning assets (4) 2.94 % 3.30 %
========== ===========
Ratio of interest-earning
assets to interest-bearing liabilities 107.74 % 108.88 %
========== ===========
(1) Debt and equity and mortgage-backed securities are shown including the
average market value appreciation of $14.7 million and $15.8 million for the
nine months ended June 30, 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 Nine Months
Ended June 30, Ended June 30,
---------------------------------- ----------------------------------
1997 1996 1997 1996
-------------- --------------- --------------- ---------------
Selected Financial Ratios: (a)
Return on average assets ...................... 0.86% 0.90% 0.85% 0.92%
Return on average stockholders' equity ........ 9.42 8.71 9.21 8.67
Average stockholders' equity to average assets. 9.14 10.31 9.24 10.64
Stockholders' equity to total assets .......... 8.99 9.99 8.99 9.99
Interest rate spread during period............. 2.51 2.92 2.60 2.92
Net interest margin............................ 2.88 3.29 2.94 3.30
Operating expenses to average assets........... 1.94 2.27 1.92 2.17
Efficiency ratio............................... 61.13 62.21 58.57 59.36
Average interest-earning assets to average
interest- bearing liabilities.................. 108.10 108.42 107.74 108.88
Net interest income to operating expenses ..... 1.43x 1.37x 1.46x 1.44x
Selected Data:
Primary earnings per share..................... $0.53 $0.47 $1.54 $1.40
Weighted average number of shares outstanding
for primary earnings per share computation 23,421,889 23,979,330 23,640,550 24,356,153
Fully diluted earnings per share............... $0.53 $0.47 $1.54 $1.40
Weighted average number of shares outstanding
for fully diluted earnings per share
computation................................. 23,444,963 24,029,679 23,678,479 24,462,925
Book value per share........................... $22.17 $21.03 $22.17 $21.03
Number of shares outstanding for book value per
share computation........................... 23,968,303 24,805,349 23,968,303 24,805,349
Cash dividends declared per share.............. $0.15 $0.10 $0.45 $0.30
Dividend payout ratio.......................... 28.30% 21.28% 29.22% 21.43%
At June 30,
----------------------------
1997 1996
------------ -----------
Asset Quality Ratios:
Non-performing loans to total gross loans.................... 1.47% 1.81%
Non-performing assets to total assets........................ 1.03 1.16
Allowance for possible loan losses to non-performing loans... 63.10 64.50
Regulatory Capital at June 30, 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........................... $ 87,669 1.50% $438,262 7.50% $350,593 6.00%
Core capital............................... 175,338 3.00 438,262 7.50 262,924 4.50
Risk-based capital......................... 242,501 8.00 471,887 15.57 229,386 7.57
(a) Ratios for the three and nine months ended June 30, 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 Nine Months Ended
June 30, June 30,
------------------------------ --------------------------------
1997 1996 1997 1996
-------------- ------------- ------------- --------------
(In thousands, except per share data)
Net income.................................................... $12,426 $11,294 $36,476 $34,177
Add back selected non-cash items:
Amortization of excess of cost over fair value
of assets acquired................................... 125 63 343 190
Management Recognition & Retention Plan and
Employee Stock Ownership Plan expense................ 945 2,075 4,589 5,056
-------------- --------------- -------------- --------------
Cash earnings................................................. $13,496 $13,432 $41,408 $39,423
============== =============== ============== ==============
Cash EPS...................................................... $0.58 $0.56 $1.75 $1.62
============== =============== ============== ==============
At or for the Three Months At or for the Nine Months
Ended June 30, Ended June 30,
--------------------------------- --------------------------------
1997 1996 1997 1996
-------------- -------------- -------------- --------------
Selected Financial Ratios Based Upon Cash Earnings (a):
Cash return on average assets................................. 0.94% 1.07% 0.97% 1.06%
Cash return on average stockholders' equity................... 10.23 10.36 10.46 10.00
Cash return on average tangible stockholders' equity.......... 10.33 10.41 10.56 10.05
Cash operating expenses to average assets..................... 1.87 2.10 1.81 2.03
Cash efficiency ratio......................................... 58.80 57.41 55.06 55.35
Net interest income to cash operating expenses................ 1.49x 1.49x 1.56x 1.54x
(a) Ratios for the three and nine months ended June 30, 1997 and 1996 were
calculated on an annualized basis.