SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported)
October 18, 1999
PEEKSKILL FINANCIAL CORPORATION
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(Exact name of Registrant as specified in its Charter)
Delaware 0-27178 13-3858258
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(State or other (Commission File No.) (IRS Employer
jurisdiction of Identification
incorporation) Number)
1019 Park Street, Peekskill, New York 10566
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (914) 737-2777
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N/A
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(Former name or former address, if changed since last report)
Item 5. Other Events
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On October 18, 1999, the Registrant issued the attached press release
announcing its first quarter results.
Item 7. Financial Statements and Exhibits
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(a) Exhibits
99.1 Press release, dated October 18, 1999.
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.
PEEKSKILL FINANCIAL CORPORATION
Date: October 18, 1999 By: /s/ Eldorus Maynard
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Eldorus Maynard, Chairman and
Chief Executive Officer
EXHIBIT 99.1
DATE: October 18, 1999
CONTACT: Eldorus Maynard, Chairman & CEO
PHONE: 914-737-2777
FOR IMMEDIATE RELEASE
PEEKSKILL FINANCIAL CORPORATION ANNOUNCES
FIRST QUARTER RESULTS
Peekskill, New York - Peekskill Financial Corporation ("Company"), the holding
company for First Federal Savings Bank ("Bank"), today announced net income of
$397,000, or $0.25 per diluted share, for the quarter ended September 30, 1999,
compared to net income of $456,000, or $0.18 per diluted share, for the same
period last year. Basic earnings per share amounts were $0.26 and $0.18 for the
quarters ended September 30, 1999 and 1998, respectively. The $59,000 decrease
in net income was caused primarily by a $177,000 decrease in net interest
income, partially offset by a $117,000 decrease in income tax expense. The
increase in both diluted and basic earnings per share is due to a decrease in
the number of common shares outstanding.
The Company also announced that the Board of Directors has declared a quarterly
cash dividend of $0.09 per share, payable November 29, 1999 to holders of record
as of November 12, 1999.
Net interest income decreased $177,000 in the current quarter compared to the
quarter ended September 30, 1998. Interest and dividend income remained constant
at $3.4 million for the quarters ended September 30, 1999 and 1998. Average
interest-earning assets increased $6.4 million, offset by a decrease of 21 basis
points in the average yield. Interest expense increased $177,000 to $1.9 million
for the quarter ended September 30, 1999 compared to the same quarter last year.
This increase was due primarily to a $22.1 million increase in average
interest-bearing liabilities partially offset by a 14 basis point decrease in
the average cost.
The Bank had loans on non-accrual status with principal balances totaling
$655,000 and $698,000 at September 30, 1999 and June 30, 1999, respectively.
One-to-four family mortgage loans past due more than 90 days but still accruing
interest totaled $300,000 at September 30, 1999 and $432,000 at June 30, 1999.
The Bank had no real estate owned at September 30, 1999 and June 30, 1999.
The provision for loan losses was $15,000 for the quarters ended September 30,
1999 and 1998. The allowance for loan losses was $757,000 or 79.3% of
non-performing loans at September 30, 1999, compared to $742,000 or 65.7% of
non-performing loans at June 30, 1999. There were no loan charge-offs or
recoveries in the quarters ended September 30, 1999 and 1998. Management's
ongoing evaluation of the adequacy of the allowance for loan losses is based on
an assessment of local economic and real estate market conditions, loan
portfolio growth and the level of non-performing loans.
Non-interest expense increased $7,000 for the quarter ended September 30, 1999
compared to the prior year quarter. The increase was caused primarily by
increases of $10,000 in compensation and benefits, $11,000 in professional fees
and $4,000 in computer service fees, partially offset by an $18,000 decrease in
other non-interest expenses.
Income tax expense for the quarter ended September 30, 1999 decreased $117,000
compared to the same period last year. The decrease is due to a $176,000
decrease in pre-tax income and the establishment of a real estate investment
trust ("REIT") in the fourth quarter of fiscal 1999. The Company's effective tax
rate was 38.6% in the current quarter compared to 44.6% in the quarter ended
September 30, 1998, primarily due to the effect of the REIT. The REIT is
expected to continue to produce substantial tax savings and a lower effective
tax rate for the Company.
Total assets at September 30, 1999 were $207.2 million compared to $206.9
million at June 30, 1999. The increase of $234,000 is primarily comprised of a
$3.8 million increase in net loans, substantially offset by a $1.5 million
decrease in total securities and a $2.1 million decrease in cash and cash
equivalents. Depositor accounts at September 30, 1999 totaled $150.0 million, an
increase of $1.3 million from June 30, 1999. Stockholders' equity decreased
$801,000 from $27.4 million at June 30, 1999 to $26.6 million at September 30,
1999. The decrease in stockholders' equity is due primarily to treasury stock
purchases of $957,000 and dividends paid of $145,000, partially offset by net
income of $397,000. Book value increased from $14.49 at June 30, 1999 to $14.59
at September 30, 1999.
The Company's stock is traded on the NASDAQ National Market System under the
symbol "PEEK".
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Forward-Looking Statements
The Company has made, and may continue to make, various forward-looking
statements with respect to earnings, credit quality and other financial and
business matters for periods subsequent to September 30, 1999. The Company
cautions that these forward-looking statements are subject to numerous
assumptions, risks and uncertainties, and that statements for subsequent periods
are subject to greater uncertainty because of the likelihood of changes in
underlying factors and assumptions. Actual results could differ materially from
forward-looking statements. The Company's forward-looking statements speak only
as of the date on which such statements are made. By making any forward-looking
statements, the Company assumes no duty to update them to reflect new, changing
or unanticipated events or circumstances.
In addition to those factors previously disclosed by the Company and
those factors identified elsewhere herein, the following factors could cause
actual results to differ materially from such forward-looking statements:
pricing pressures on loan and deposit products; actions of competitors; changes
in local and national economic conditions; customer deposit disintermediation;
changes in customers' acceptance of the Company's products and services; the
extent and timing of legislative and regulatory actions and reforms; and Year
2000 related costs and issues substantially different from those now
anticipated.
PEEKSKILL FINANCIAL CORPORATION
SELECTED CONDENSED CONSOLIDATED FINANCIAL INFORMATION
(Dollars in thousands, except per share amounts)
September 30, June 30,
1999 1999
Selected Financial Condition Data:
Total assets $207,166 $206,932
Loans, net 67,249 63,436
Securities:
Held-to-maturity 117,914 119,122
Available-for-sale 15,388 15,673
Cash and cash equivalents 2,011 4,157
Depositor accounts 150,013 148,693
Securities repurchase agreements and
other borrowings 28,000 28,000
Stockholders' equity 26,550 27,351
Non-performing loans $ 955 $ 1,130
Book value per share $14.59 $14.49
Equity as a percent of total assets 12.82% 13.22%
For the three months
ended September 30,
1999 1998
Selected Operating Data:
Interest and dividend income $3,355 $3,355
Interest expense 1,872 1,695
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Net interest income 1,483 1,660
Provision for loan losses 15 15
Non-interest income 71 63
Non-interest expense 892 885
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Income before income tax expense 647 823
Income tax expense 250 367
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Net income $ 397 $ 456
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Earnings per share:
Basic $0.26 $0.18
Diluted $0.25 $0.18
Return on average assets 0.76% 0.91%
Return on average equity 5.78% 4.23%