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)
January 31, 2000
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)
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Item 5. Other Events
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On January 31, 2000, the Registrant issued the attached press release
announcing its second quarter results.
Item 7. Financial Statements and Exhibits
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(a) Exhibits
99 Press release, dated January 31, 2000.
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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: January 31, 2000 By: /s/ Eldorus Maynard
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Eldorus Maynard, Chairman and
Chief Executive Officer
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EXHIBIT 99
DATE: January 31, 2000
CONTACT: Eldorus Maynard, Chairman & CEO
PHONE: 914-737-2777
FOR IMMEDIATE RELEASE
PEEKSKILL FINANCIAL CORPORATION ANNOUNCES 50% INCREASE
IN DILUTED EARNINGS PER SHARE FOR THE SECOND
QUARTER AND ANNOUNCES DIVIDEND
Peekskill, New York - Peekskill Financial Corporation ("Company"), the
holding company for First Federal Savings Bank ("Bank"), today announced net
income of $399,000, or $0.27 per diluted share, for the quarter ended December
31, 1999, compared to net income of $444,000, or $0.18 per diluted share, for
the same period last year. Basic earnings per share amounts were $0.27 and $0.18
for the quarters ended December 31, 1999 and 1998, respectively. For the six
months ended December 31, 1999 net income totaled $796,000, or $0.52 per diluted
share, compared to $900,000, or $0.35 per diluted share, for the six months
ended December 31, 1998. Basic EPS amounts were $0.53 and $0.36 for the six
months ended December 31, 1999 and 1998, respectively. The higher per-share
earnings in both the three- and six-month periods reflect the substantially
lower number of shares outstanding due to the stock repurchases made over the
past year.
The Company also announced that the Board of Directors has declared a
quarterly cash dividend of $0.09 per share, payable March 3, 2000 to holders of
record as of February 18, 2000.
Net interest income decreased $130,000 in the current quarter compared to the
quarter ended December 31, 1998, reflecting a 29 basis point decline in the net
yield on average interest-earning assets to 2.93 in the current quarter.
Interest and dividend income remained constant at $3.4 million for the quarters
ended December 31, 1999 and 1998. Average interest-earning assets increased $2.4
million and the average yield increased 4 basis points. Interest expense
increased $188,000 to $1.9 million for the quarter ended December 31, 1999
compared to the same quarter last year. This increase was due primarily to a
$19.4 million increase in average interest-bearing liabilities partially offset
by a 4 basis point decrease in the average cost. Net interest income decreased
$307,000 for the six months ended December 31, 1999 compared to the six months
ended December 31, 1998, reflecting a 37 basis point decline in the net yield on
average interest-earning assets to 2.91% in the six months ended December 31,
1999. Interest and dividend income increased $58,000 to $6.8 million for the six
months ended December 31, 1999 compared to the six months ended December 31,
1998. Average interest-earning assets increased $4.0 million, partially offset
by an 8 basis point decrease in the average yield. Interest expense increased
$365,000 to $3.8 million for the six months ended December 31, 1999 compared to
the same period last year. The decrease was caused primarily by a $20.9 million
increase in interest-bearing liabilities, partially offset by a 10 basis point
decrease in the average rate.
The Company had loans on non-accrual status with principal balances
totaling $563,000 and $698,000 at December 31, 1999 and June 30, 1999,
respectively. One-to-four family mortgage loans past due more than 90 days but
still accruing interest totaled $372,000 at December 31, 1999 and $432,000 at
June 30, 1999. The Company had no real estate owned at December 31, 1999 and
June 30, 1999.
The provision for loan losses was $15,000 for the quarters ended
December 31, 1999 and 1998, and $30,000 for the six month periods ended December
31, 1999 and 1998. The allowance for loan losses was $772,000 or 82.6% of
non-performing loans at December 31, 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 six month periods ended December 31, 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.
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Non-interest expense increased $18,000 for the quarter ended December
31, 1999 compared to the prior year quarter. The increase was caused primarily
by increases of $38,000 in compensation and benefits, $11,000 in computer
service fees and $7,000 in professional fees, partially offset by a $45,000
decrease in other non-interest expenses. For the six months ended December 31,
1999 non-interest expense increased $25,000 compared to the same period in 1998.
The increase was caused primarily by increases of $48,000 in compensation and
benefits, $18,000 in professional fees and $15,000 in computer service fees,
partially offset by a $63,000 decrease in other non-interest expenses.
Income tax expense for the quarter ended December 31, 1999 decreased
$100,000 compared to the same period last year. The decrease is due to a
$145,000 decrease in pre-tax income and the effect of the real estate investment
trust ("REIT") established in the quarter ended June 30, 1999. The Company's
effective tax rate was 38.5% in the current quarter compared to 44.1% in the
quarter ended December 31, 1998, primarily due to the effect of the REIT. For
the six months ended December 31, 1999 income tax expense decreased $217,000
compared to the same period a year ago. The decrease is due to a $321,000
decrease in pre-tax income and the effect of the REIT. The Company's effective
tax rate was 38.6% for the six months ended December 31, 1999 compared to 44.3%
for the same period in 1998. The REIT is expected to continue to produce
substantial tax savings and a lower effective tax rate for the Company.
Total assets at December 31, 1999 were $212.7 million compared to
$206.9 million at June 30, 1999. The increase of $5.7 million is primarily
comprised of a $6.3 million increase in cash and cash equivalents and a $4.6
million increase in net loans, partially offset by a $5.4 million decrease in
total securities. Depositor accounts at December 31, 1999 totaled $152.7
million, an increase of $4.0 million from June 30, 1999. Stockholders' equity
decreased $1.4 million from $27.4 million at June 30, 1999 to $26.0 million at
December 31, 1999. The decrease in stockholders' equity is due primarily to
treasury stock purchases of $1.7 million and dividends paid of $283,000,
partially offset by net income of $796,000. Book value per share increased from
$14.49 at June 30, 1999 to $14.74 at December 31, 1999.
The Company's stock is traded on the NASDAQ National Market System
under the symbol "PEEK".
* * * * *
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 December 31, 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; and the
extent and timing of legislative and regulatory actions and reforms.
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PEEKSKILL FINANCIAL CORPORATION
SELECTED CONDENSED CONSOLIDATED FINANCIAL INFORMATION
(Dollars in thousands, except per share amounts)
December 31, June 30,
1999 1999
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Selected Financial Condition Data:
Total assets $212,659 $206,932
Loans, net 68,048 63,436
Securities:
Held-to-maturity 114,290 119,122
Available-for-sale 15,082 15,673
Cash and cash equivalents 10,439 4,157
Depositor accounts 152,651 148,693
Securities repurchase agreements and
other borrowings 31,000 28,000
Stockholders' equity 25,983 27,351
Non-performing loans $ 935 $ 1,130
Book value per share $14.74 $14.49
Equity as a percent of total assets 12.22% 13.22%
For the three months For the six months
ended December 31, ended December 31,
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1999 1998 1999 1998
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Selected Operating Data:
Interest and dividend income $3,428 $3,370 $6,783 $6,725
Interest expense 1,918 1,730 3,790 3,425
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Net interest income 1,510 1,640 2,993 3,300
Provision for loan losses 15 15 30 30
Non-interest income 72 69 143 132
Non-interest expense 918 900 1,810 1,785
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Income before income tax expense 649 794 1,296 1,617
Income tax expense 250 350 500 717
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Net income $399 $444 $796 $900
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Earnings per share:
Basic $0.27 $0.18 $0.53 $0.36
Diluted $0.27 $0.18 $0.52 $0.35
Return on average assets 0.76% 0.86% 0.76% 0.88%
Return on average equity 6.06% 4.14% 5.91% 4.18%
