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 28, 1998
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 28, 1998
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 28, 1998
[OBJECT OMITTED] 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 RECORD THIRD QUARTER EARNINGS
Melville, New York, July 28, 1998 - Long Island Bancorp, Inc. (NASDAQ:
LISB), the holding company for The Long Island Savings Bank, FSB, today reported
record earnings of $15.9 million, or diluted earnings per share of $0.68 for the
quarter ended June 30, 1998, representing the ninth consecutive quarter of
increased earnings (excluding one-time charges). Net income for the same period
in 1997 was $12.4 million, or $0.54 per diluted share. For the nine months ended
June 30, 1998, net income totaled $43.0 million, an increase of $6.5 million, or
17.8%, from $36.5 million earned in fiscal 1997. Diluted earnings per share for
the nine month periods in 1998 and 1997 were $1.85 and $1.56, respectively.
Basic earnings per share for the three and nine month periods in 1998 were $0.71
and $1.92, respectively, compared with $0.56 and $1.62 for the same periods in
1997.
Commenting on the third quarter earnings, John J. Conefry, Jr.,
Chairman of the Board and Chief Executive Officer stated, "We are proud to
report our ninth consecutive quarter of increased earnings. Our return on equity
for the quarter reached 11.1%, which reflects an operating efficiency level of
51%. We also experienced a record level of retail loan originations for the nine
months ended June 30, 1998 of $2.2 billion, reflecting the strong demand for our
mortgage products."
Earnings Summary for the Quarter Ended June 30, 1998
- - ----------------------------------------------------
Net interest income declined marginally to $39.8 million during the
quarter ended June 30, 1998 from $40.0 million in the same quarter of 1997. The
decline in net interest income is attributable to the continued flattening of
the yield curve, coupled with a higher level of average borrowed funds. These
factors contributed to a decline in the net interest margin to 2.58% for the
quarter ended June 30, 1998 as compared with 2.88% for the quarter ended June
30, 1997.
Total non-interest income increased by $3.1 million, or 31.8%, to $13.0
million for the quarter ended June 30, 1998 compared with the same period in
1997. This increase is attributable to increases in other income of $1.5
million, an increase of $0.7 million in net gains on investments in real estate
and premises, an increase of $0.6 million in net gains on asset sales, an
increase of $0.6 million in deposit service fee income, and an increase of $0.3
million in income from insurance and securities commissions. These improvements
were partially offset by a decrease of $0.7 million in loan servicing fee
income. The increase in other income was primarily due to the settlement of a
real estate dispute in the amount of $1.6 million. Net gains on investments in
real estate and premises were principally comprised of greater income from joint
venture operations in the 1998 quarter as compared with the 1997 quarter. Net
gains from asset sales reflects increases of $0.3 million in the Company's
mortgage banking activities and $0.4 million from the sale of MBS's classified
as available-for-sale. Deposit service fee income increased from recently
implemented deposit pricing initiatives. The decline in loan service fee income
is due to a $1.6 million increase in the amortization of mortgage servicing
rights which resulted from increased mortgage refinancing activity. Partially
offsetting the rise in amortization was greater fee income stemming from a net
increase of $440.7 million in the mortgage servicing portfolio.
Total G&A expense decreased by $3.5 million, or 12.6%, to $24.3 million
for the quarter ended June 30, 1998 compared with the same period in fiscal
1997. This decrease represents the fourth consecutive quarter of declining G&A
expense. Contributing to this decrease were reductions in compensation and
benefit costs of $2.1 million, office occupancy and equipment expense of $0.8
million, advertising expense of $0.4 million, and other G&A expense of $0.2
million Compensation and benefit costs decreased due to greater net deferred
loan costs resulting from increased loan production and a decline in the number
of employees. Office occupancy and equipment expense decreased due to reduced
machine maintenance costs of $0.4 million, and real estate tax certiorari
refunds of $0.2 million. Advertising costs decreased due to fewer marketing
initiatives.
Income tax expense increased to $10.5 million for the quarter ended
June 30, 1998 from $7.9 million for the 1997 quarter. This increase is
principally attributable to greater pre-tax income.
Earnings Summary for the Nine Months Ended June 30, 1998
--------------------------------------------------------
Net interest income decreased by $1.3 million, or 1.1%, to $119.1
million during the nine months ended June 30, 1998 compared with the same period
in 1997. This decrease is attributable to a continuing flattening of the yield
curve coupled with an increase in average borrowed funds. These factors
contributed to a decline in the net interest margin to 2.66% in the 1998 period
from 2.95% in the 1997 period.
Total non-interest income increased by $5.2 million, or 18.8%, to $32.6
million for the nine months ended June 30, 1998 compared with $27.4 million for
the 1997 period. This increase is primarily due to increases in net gains on
asset sales of $4.4 million, an increase of $1.5 million in other income, an
increase of $1.0 million in net gains on investment in real estate and premises,
an increase of $0.6 million in income from insurance and securities commissions,
and an increase of $0.5 million in deposit service fee income. These
improvements were partially offset by a decline in loan servicing fees of $2.9
million. The increased gains on asset sales is primarily due to an improvement
of $1.7 million in the Company's mortgage banking activities and greater profits
of $2.1 million from the sale of MBS's classified as available-for-sale. The
increases in other income, net gains on investment in real estate and premises
and deposit service fee income increased due to the factors described earlier.
The decline in loan service fee income is due to additional mortgage servicing
rights amortization of $4.7 million, as a result of increased mortgage refinance
activity, which was partially offset by the expansion of the mortgage servicing
portfolio.
Total G&A expense decreased by $6.4 million, or 7.9%, to $75.0 million
for the nine months ended June 30, 1998 compared with the same period in fiscal
1997. Contributing to this decrease were reductions in compensation and benefits
costs of $3.6 million, a decrease in federal insurance premiums of $1.1 million,
a decrease in office occupancy and equipment costs of $0.9 million and a decline
in advertising expense of $1.5 million. Compensation and benefits costs, office
occupancy and equipment costs and advertising costs declined due to the reasons
described earlier. Federal insurance premiums decreased as a result of the 1996
enactment of the BIF/SAIF legislation. The effect of these decreases was
partially offset by a $0.7 million increase in other G & A expense reflecting
the outsourcing of computer processing operations and an increase in legal
costs.
Income tax expense increased $3.4 million to $27.7 million for the
nine months ended June 30, 1998 from $24.3 million for the 1997 period.
This increase primarily reflects greater pre-tax income.
Balance Sheet Summary
- - ---------------------
Total assets at June 30, 1998 were $6.5 billion, an increase of $553.1
million since September 30, 1997. The growth in assets is attributable to
increases of $251.8 million in investment in debt and equity securities, $123.7
million in cash and cash equivalents, $94.0 million in total net loans held for
investment and sale, and $79.4 million in MBS's. Loan volume for the nine months
ended June 30, 1998 was $2.2 billion, of which $8.1 million represents bulk
purchases of loans as compared with $2.1 billion and $221.9 million,
respectively, for the nine months ended June 30, 1997.
Total liabilities at June 30, 1998 were $5.9 billion, an increase of
$522.0 million since September 30, 1997. The increase in total liabilities
primarily reflects an increase in borrowed funds of $541.1 million to $2.0
billion, offset by a decrease in deposit liabilities of $52.3 million to $3.7
billion at June 30, 1998.
Stockholders' equity increased by $31.1 million to $577.5 million from
September 30, 1997. The increase consists of earnings of $43.0 million and $6.4
million related to the Company's stock benefit plans. These increases were
offset by a decline of $3.8 million in unrealized gains on securities classified
as available-for-sale, net of tax, the net purchase (prior to April 2, 1998) of
treasury stock of $3.3 million, and the declaration of $11.2 million in
dividends. At June 30, 1998 book value per share amounted to $23.88.
Certain reclassifications have been made to prior year amounts to
conform to the current year presentation.
Long Island Bancorp's Pending Merger with Astoria Financial Corporation;
- - -------------------------------------------------------------------------
Termination of Fourth Stock Repurchase Program
- - ----------------------------------------------
The Company announced on April 3, 1998, that it had entered into a
definitive agreement pursuant to which Long Island Bancorp, Inc. will merge with
and into Astoria Financial Corporation. The transaction, which is subject to
regulatory and shareholder approvals and will be accounted for as a pooling of
interests, is anticipated to close during the third calendar quarter. In
connection with the merger, both the Company and Astoria announced that their
respective stock repurchase programs have been terminated.
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 in New Jersey,
Pennsylvania, Maryland, Virginia, North Carolina, and Georgia and has
Internet home pages at the addresses: http: //www.lisb.com. and
www. entrustmortgage.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,
1998 1997
---------------- -----------------
ASSETS
- - ------
Cash and cash equivalents (including interest-earning assets of $119,058
and $9,735, respectively) $ 167,406 $ 43,705
Investment in debt and equity securities, net:
Available-for-sale 390,388 138,578
Mortgage-backed securities, net:
Held-to-maturity (estimated fair value of
$19,164 and $20,188, respectively) 21,052 22,223
Available-for-sale 1,889,014 1,808,471
Stock in Federal Home Loan Bank of New York, at cost 50,548 48,724
Loans held for sale 363,453 157,617
Loans receivable held for investment, net:
Real estate loans, net 3,211,964 3,333,185
Commercial loans, net 9,478 6,465
Other loans, net 185,110 178,325
--------------------------------------
Loans, net 3,406,552 3,517,975
Less allowance for possible loan losses (34,277) (33,881)
--------------------------------------
Total loans receivable held for investment, net 3,372,275 3,484,094
Mortgage servicing rights, net 47,694 41,789
Office properties and equipment, net 84,416 88,466
Accrued interest receivable, net 37,094 35,334
Investment in real estate, net 7,712 9,103
Deferred taxes 15,406 16,547
Excess of cost over fair value of assets acquired 4,767 5,069
Prepaid expenses and other assets 32,662 31,064
--------------------------------------
Total assets $ 6,483,887 $ 5,930,784
======================================
LIABILITIES AND STOCKHOLDERS' EQUITY
- - ------------------------------------
Liabilities:
Deposits $ 3,678,195 $ 3,730,503
Official checks outstanding 29,983 26,840
Borrowed funds,net 2,042,534 1,501,456
Mortgagors' escrow payments 67,673 69,353
Accrued expenses and other liabilities 88,006 56,257
--------------------------------------
Total liabilities 5,906,391 5,384,409
Stockholders' equity:
Preferred stock ($0.01 par value, 5,000,000 shares authorized;
none issued) --- ---
Common stock ($0.01 par value, 130,000,000 and 45,000,000 shares
authorized, respectively; 26,816,464 shares issued, 24,182,823 and
24,022,924 shares outstanding, respectively) 268 268
Additional paid-in capital 314,196 309,372
Unallocated Employee Stock Ownership Plan (17,575) (18,079)
Unearned Management Recognition & Retention Plan (2,681) (3,816)
Unrealized gain on securities available-for-sale, net of tax 9,178 12,947
Retained income-partially restricted 346,866 319,756
Treasury stock, at cost (2,633,641 and 2,793,540 shares, (72,756) (74,073)
respectively)
--------------------------------------
Total stockholders' equity 577,496 546,375
--------------------------------------
Total liabilities and stockholders' equity $ 6,483,887 $ 5,930,784
======================================
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,
----------------------- ---------------------------
1998 1997 1998 1997
---------- ---------- --------- -----------
Interest income:
Real estate loans $ 64,478 $ 63,086 $ 193,815 $ 184,151
Commercial loans 192 143 535 472
Other loans 4,336 3,987 12,954 11,650
Mortgage-backed securities 30,047 29,533 88,711 88,041
Debt and equity securities 8,343 3,667 20,894 11,339
---------- ---------- ----------------------
Total interest income 107,396 100,416 316,909 295,653
---------- ---------- ----------------------
Interest expense:
Deposits 39,013 39,941 119,994 118,217
Borrowed funds 28,617 20,426 77,791 57,001
---------- ---------- ----------------------
Total interest expense 67,630 60,367 197,785 175,218
---------- ---------- ----------------------
Net interest income 39,766 40,049 119,124 120,435
Provision for possible loan losses 1,500 1,500 4,500 4,500
---------- ---------- ----------------------
Net interest income after provision 38,266 38,549 114,624 115,935
for possible loan losses
---------- ---------- ----------------------
Non-interest income:
Fees and other income:
Loan fees and service charges 967 764 2,663 2,659
Loan servicing fees 1,671 2,417 6,040 8,907
Income from insurance and securities 933 655 2,320 1,753
commissions
Deposit service fees 1,915 1,275 4,763 4,216
---------- ---------- ----------------------
Total fee income 5,486 5,111 15,786 17,535
Other income 2,204 699 4,021 2,558
---------- ---------- ----------------------
Total fees and other income 7,690 5,810 19,807 20,093
---------- ---------- ----------------------
Net gains on sale activity:
Net gains on loans and mortgage-backed 3,782 3,087 11,054 7,325
securities
Net gains (loss) on investment in debt 101 236 1,027 334
and equity securities
---------- ---------- ----------------------
Total net gains on sale activity 3,883 3,323 12,081 7,659
Net gain (loss) on investment in real 1,469 765 745 (293)
estate and premises
---------- ---------- ----------------------
Total non-interest income 13,042 9,898 32,633 27,459
Non-interest expense:
General and administrative expense:
Compensation, payroll taxes and fringe 12,918 15,000 40,385 43,988
benefits
Advertising 826 1,218 2,070 3,562
Office occupancy and equipment 4,940 5,761 15,806 16,724
Federal insurance premiums 796 792 2,392 3,474
Other general and administrative 4,818 5,027 14,345 13,688
expense
---------- ---------- ----------------------
Total general and administrative 24,298 27,798 74,998 81,436
expense
Litigation expense - goodwill lawsuit 583 234 1,293 868
Amortization of excess of cost over fair 97 125 302 343
value of assets acquired
---------- ---------- ----------------------
Total non-interest expense 24,978 28,157 76,593 82,647
---------- ---------- ----------------------
Income before income taxes 26,330 20,290 70,664 60,747
Provision for income taxes 10,474 7,864 27,689 24,271
---------- ---------- ----------------------
Net income $ 15,856 $ 12,426 $ 42,975 $ 36,476
========== ========== ======================
Basic earnings per common share $ 0.71 $ 0.56 $ 1.92 $ 1.62
========== ========== ======================
Diluted earnings per common share $ 0.68 $ 0.54 $ 1.85 $ 1.56
========== ========== ======================
(a) The Company adopted Statement of Financial Accounting Standards ("SFAS")
No. 128, "Earning per Share" as of December 31, 1997. SFAS No.128
replaces primary earnings per share ("EPS") with basic EPS and
fully diluted EPS with diluted EPS. Basic EPS is computed by dividing
income available to common stockholders by the weighted average number
of common shares outstanding for the period. Diluted EPS reflects the
potential dilution of options, warrants and convertible securities.
Net income per common share amounts for the 1997 periods have been restated
to reflect the adoption of SFAS No. 128.
LONG ISLAND BANCORP, INC.
AND SUBSIDIARY
AVERAGE BALANCE SHEET
FOR THE THREE MONTHS ENDED JUNE 30,
----------------------------------------------------------------------------------------------
1998 1997
-------------------------------------------- -----------------------------------------------
AVERAGE AVERAGE
AVERAGE YIELD\ AVERAGE YIELD\
BALANCE INTEREST COST BALANCE INTEREST COST
-------------- ------------ -------------- -------------- -------------- ---------------
(DOLLARS IN THOUSANDS)
INTEREST-EARNING ASSETS
Interest-earning cash
equivalents $ 120,938 $ 1,899 6.30 % $ 57,452 $ 789 5.50 %
Debt and equity securities
and FHLB-NY stock, net (1) 390,651 6,444 6.60 199,213 2,878 5.78
Mortgage-backed securities, 1,917,060 30,047 6.27 1,725,124 29,533 6.85
net (1)
Real estate loans, net (2) 3,567,338 64,478 7.23 3,428,548 63,086 7.36
Commercial and other loans, 181,012 4,528 10.01 150,068 4,130 11.01
net (2)
-------------- ------------ ------------ -------------- -------------- -------------
Total interest-earning assets 6,176,999 107,396 6.95 5,560,405 100,416 7.22
Other non-interest-earning 276,125 210,194
assets
-------------- ------------ -------------- --------------
Total assets $ 6,453,124 $ 107,396 $ 5,770,599 $ 100,416
============== ============ ============== ==============
INTEREST BEARING LIABILITIES
Deposits, net $ 3,771,750 $ 39,013 4.15 % $ 3,723,610 $ 39,941 4.30 %
Borrowed funds 1,959,276 28,617 5.86 1,420,092 20,426 5.77
-------------- ------------ ------------ -------------- -------------- -------------
Total interest-bearing 5,731,026 67,630 4.73 5,143,702 60,367 4.71
liabilities
Non-interest-bearing 150,546 99,339
liabilities
-------------- --------------
Total liabilities 5,881,572 5,243,041
Total stockholders' equity 571,552 527,558
-------------- ------------ ------------ -------------- -------------- -------------
Total liabilities and
stockholders'
equity $ 6,453,124 $ 67,630 $ 5,770,599 $ 60,367
============== ------------ ============== --------------
Net interest income/spread (3) $ 39,766 2.22 % $ 40,049 2.51 %
============ ============ ============== =============
Net interest margin as %
of interest-earning assets (4) 2.58 % 2.88 %
============ =============
Ratio of interest-earning
assets to interest-bearing liabilties 107.78 % 108.10 %
============ =============
(1)Debt and equity and mortgage-backed securities are shown including the
average market value appreciation of $20.4 million and $12.1 million for the
three months ended June 30, 1998 and 1997, 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-bearingliabilities.
(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,
----------------------------------------------------------------------------------------------
1998 1997
-------------------------------------------- -----------------------------------------------
AVERAGE AVERAGE
AVERAGE YIELD\ AVERAGE YIELD\
BALANCE INTEREST COST BALANCE INTEREST COST
-------------- ------------ -------------- -------------- -------------- ---------------
(DOLLARS IN THOUSANDS)
INTEREST-EARNING ASSETS
Interest-earning cash
equivalents $ 87,848 $ 3,721 5.66 % $ 63,098 $ 2,509 5.32 %
Debt and equity securities
and FHLB-NY stock, net (1) 359,090 17,173 6.38 207,906 8,830 5.66
Mortgage-backed securities, 1,825,359 88,711 6.48 1,728,772 88,041 6.79
net (1)
Real estate loans, net (2) 3,523,489 193,815 7.33 3,289,507 184,151 7.46
Commercial and other loans, 176,883 13,489 10.17 145,296 12,122 11.12
net (2)
-------------- ------------ ------------ -------------- -------------- -------------
Total interest-earning assets 5,972,669 316,909 7.07 5,434,579 295,653 7.25
Other non-interest-earning 253,169 258,575
assets
-------------- ------------ -------------- --------------
Total assets $ 6,225,838 $ 316,909 $ 5,693,154 $ 295,653
============== ============ ============== ==============
INTEREST BEARING LIABILITIES
Deposits, net $ 3,785,670 $ 119,994 4.24 % $ 3,713,154 $ 118,217 4.26 %
Borrowed funds 1,760,508 77,791 5.91 1,330,944 57,001 5.73
-------------- ------------ ------------ -------------- -------------- -------------
Total interest-bearing 5,546,178 197,785 4.77 5,044,098 175,218 4.64
liabilities
Non-interest-bearing 118,576 123,122
liabilities
-------------- --------------
Total liabilities 5,664,754 5,167,220
Total stockholders' equity 561,084 525,934
-------------- ------------ ------------ -------------- -------------- -------------
Total liabilities and
stockholders'
equity $ 6,225,838 $ 197,785 $ 5,693,154 $ 175,218
============== ------------ ============== --------------
Net interest income/spread (3) $ 119,124 2.30 % $ 120,435 2.61 %
============ ============ ============== =============
Net interest margin as %
of interest-earning assets (4) 2.66 % 2.95 %
============ =============
Ratio of interest-earning
assets to interest-bearing liabilties 107.69 % 107.74 %
============ =============
(1) Debt and equity and mortgage-backed securities are shown including the
average market value appreciation of $21.3 million and $14.7 million for the
nine months ended June 30, 1998 and 1997, 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,
---------------------------------- ----------------------------------
1998 1997 1998 1997
-------------- --------------- --------------- ---------------
Selected Financial Ratios: (a)
Return on average assets ...................... 0.98% 0.86% 0.92% 0.85%
Return on average stockholders' equity ........ 11.10 9.42 10.21 9.25
Average stockholders' equity to average assets. 8.86 9.14 9.01 9.24
Stockholders' equity to total assets .......... 8.91 8.99 8.91 8.99
Interest rate spread during period............. 2.22 2.51 2.30 2.61
Net interest margin............................ 2.58 2.88 2.66 2.95
Operating expenses to average assets........... 1.51 1.93 1.61 1.91
Efficiency ratio............................... 51.20 60.62 53.98 57.95
Average interest-earning assets to average
interest-bearing liabilties.................... 107.78 108.10 107.69 107.74
Net interest income to operating expenses ..... 1.64x 1.44x 1.59x 1.48x
Selected Data:
Basic earnings per share....................... $0.71 $0.56 $1.92 $1.62
Weighted average number of shares outstanding
for basic earnings per share computation (b) 22,393,867 22,280,610 22,326,626 22,503,284
Diluted earnings per share..................... $0.68 $0.54 $1.85 $1.56
Weighted average number of shares outstanding
for diluted earnings per share computation (b) 23,314,565 23,107,961 23,263,786 23,331,000
Book value per share........................... $23.88 $22.17 $23.88 $22.17
Number of shares outstanding for book value per
share computation........................... 24,182,823 23,968,303 24,182,823 23,968,303
Cash dividends declared per share.............. $0.20 $0.15 $0.50 $0.45
Dividend payout ratio.......................... 29.41% 27.78% 27.03% 28.85%
At June 30,
----------------------------
1998 1997
------------ -----------
Asset Quality Ratios:
Non-performing loans to total gross loans.................... 1.35% 1.47%
Non-performing assets to total assets........................ 0.86 1.03
Allowance for possible loan losses to non-performing loans... 67.61 63.10
Regulatory Capital at June 30, 1998 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........................... $96,493 1.50 % $476,007 7.40 % $379,514 5.90%
Core capital............................... 192,986 3.00 476,007 7.40 283,021 4.40
Risk-based capital......................... 270,066 8.00 510,284 15.12 240,218 7.12
(a) Ratios for the three months ended June 30, 1998 and 1997 were calculated on
an annualized basis.
(b) The weighted average common shares outstanding for periods prior to
June 30, 1998, have been restated to reflect the adoption of SFAS No. 128.
LONG ISLAND BANCORP, INC.
AND SUBSIDIARY
SUPPLEMENTAL INFORMATION
SELECTED FINANCIAL DATA - CASH EARNINGS
Three Months Ended Nine Months Ended
June 30, June 30,
------------------------------- ----------------------------------
1998 1997 1998 1997
-------------- --------------- ------------- --------------
(In thousands, except per share data)
Net income $ 15,856 $ 12,426 $ 42,975 $ 36,476
Add back selected non-cash items:
Amortization of excess of cost over fair value
of assets acquired 97 125 302 343
Management Recognition & Retention Plan and
Employee Stock Ownership Plan expense 894 945 3,622 4,590
-------------- --------------- -------------- ---------------
Cash earnings $ 16,847 $ 13,496 $ 46,899 $ 41,409
============== =============== ============== ===============
Cash EPS (a) $ 0.75 $ 0.61 $ 2.10 $ 1.84
============== =============== ============== ===============
At or for the Three Months At or for the Nine Months
Ended June 30, Ended June 30,
--------------------------------- --------------------------------
1998 1997 1998 1997
-------------- -------------- -------------- ---------------
Selected Financial Ratios Based Upon Cash Earnings (b):
Cash return on average assets................................. 1.04% 0.94% 1.00% 0.97%
Cash return on average stockholders' equity................... 11.79 10.23 11.14 10.50
Cash return on average tangible stockholders' equity.......... 11.89 10.32 11.24 10.60
Cash operating expenses to average assets..................... 1.44 1.85 1.52 1.79
Cash efficiency ratio......................................... 49.11 58.28 51.16 54.44
Net interest income to cash operating expenses................ 1.71x 1.50x 1.68x 1.57x
(a) Cash EPS was calculated based on the weighted average number of shares
outstanding for basic EPS computation.
(b) Ratios for the three months ended June 30, 1998 and 1997 were calculated
on an annualized basis.