SECURITIES AND EXCHANGE COMMISSION
Washington, DC 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 26, 1999
YONKERS FINANCIAL CORPORATION
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(Exact name of Registrant as specified in its Charter)
Delaware 0-277716 13-3870836
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(State or other jurisdiction (Commission File No.) (IRS Employer
of incorporation) Identification No.)
6 Executive Plaza, Yonkers, New York 10701
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (914) 965-2500
N/A
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(Former name or former address, if changed since last report)
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Item 5. Other Events
On October 26, 1999, the Registrant issued the attached press release
announcing its earnings for the quarter and the fiscal year ended September 30,
1999 and announced an increase in the quarterly cash dividend to $0.09 per
share.
Item 7. Financial Statements and Exhibits
(a) Exhibits
99 Press Release, October 26, 1999
<PAGE>
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.
YONKERS FINANCIAL CORPORATION
Date: October 27, 1999 By: /S/ RICHARD F. KOMOSINSKI
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Richard F. Komosinski, President
EXHIBIT 99
DATE: October 26, 1999
CONTACTS: Richard F. Komosinski, President and CEO
Joseph D. Roberto, Vice President, Treasurer and CFO
PHONE: 914-965-2500
FOR IMMEDIATE RELEASE
YONKERS FINANCIAL CORPORATION REPORTS EARNINGS
FOR THE QUARTER AND FISCAL YEAR ENDED SEPTEMBER 30, 1999 AND
ANNOUNCES AN INCREASE IN THE QUARTERLY CASH DIVIDEND TO
$0.09 PER SHARE
Yonkers, New York - October 26, 1999, Yonkers Financial Corporation (NASDAQ:
YFCB) (the "Company"), the holding company for The Yonkers Savings and Loan
Association, FA (the "Association"), reported net income of $2.7 million or
$1.11 diluted earnings per common share for the fiscal year ended September 30,
1999, compared to net income of $2.9 million or $1.08 diluted earnings per
common share for the fiscal year ended September 30, 1998. Basic earnings per
common share were $1.13 for the fiscal year ended September 30, 1999, compared
to $1.12 for fiscal 1998. Net income for the quarter ended Se ptember 30, 1999
amounted to $673,000 or $0.30 diluted earnings per common share compared to
$678,000 or $0.27 diluted earnings per common share for the quarter ended
September 30, 1998. Basic earnings per common share were $0.31 for the quarter
ended September 30, 1999 compared to $0.28 for the same period in 1998.
The Company also announced that the Board of Directors, at its October 19, 1999
meeting, increased the quarterly cash dividend from $0.08 per share to $0.09 per
share, payable November 19, 1999 to holders of record as of November 5, 1999.
The dividend represents the Company's fourteenth consecutive quarterly cash
dividend since converting to stock form. Richard F. Komosinski, the Company's
President and Chief Executive Officer, said, "We are pleased with the Company's
performance for fiscal 1999 and are proud of the progress we have made in the
growth of the institution."
Total assets at September 30, 1999 amounted to $457.7 million, an increase of
$74.7 million, or 19.5%, from $383.0 million at September 30, 1998. Asset growth
during the period was funded primarily through proceeds from borrowings under
Federal Home Loan Bank ("FHLB") advances and growth in the Company's deposit
base relating to the expansion of its retail franchise. Total borrowings
increased by $40.1 million to $147.9 million at September 30, 1999 from $107.8
million at September 30, 1998. Deposit liabilities increased $41.8 million to
$273.0 million at September 30, 1999 from $231.2 million at September 30, 1998.
<PAGE>
Funds provided by borrowings and deposit growth, as well as proceeds from the
sales of mortgages held for sale, were primarily invested in new loans. Overall,
total loans (loans receivable and mortgage loans held for sale) increased $101.8
million or 51.6%, to $299.2 million at September 30, 1999 from $197.4 million at
September 30, 1998. The loan growth during fiscal 1999 primarily reflects
originations (net of repayments) of $139.6 million, less $37.4 million in loans
sold. Total securities decreased $29.9 million to $138.6 million at September
30, 1999 million from $168.5 million at September 30, 1998.
Stockholders' equity amounted to $32.0 million at September 30, 1999, a $9.8
million decrease from September 30, 1998. The decrease is primarily attributable
to common share repurchases of $8.7 million for the treasury, and a $3.7 million
decrease in the after-tax net unrealized gain on available-for-sale securities,
partially offset by net income retained after dividends of $1.9 million, and a
combined increase of $755,000 relating to the employee stock ownership plan
("ESOP") and the management recognition plan ("MRP"). The ratio of stockholders'
equity to total assets decreased to 7.0% at September 30, 1999 from 10.91% at
September 30, 1998 reflecting the substantial asset growth coupled with the net
decrease in stockholders' equity. Book value per share (computed based on total
shares issued less treasury shares) was $14.30 at September 30, 1999, a decrease
from $15.33 at September 30, 1998.
Net interest income for the year ended September 30, 1999 was $12.0 million, an
increase of $595,000 from $11.4 million for the prior year. Net interest income
for the quarter ended September 30, 1999 was $3.2 million compared to $2.8
million for the quarter ended September 30, 1998. The increases primarily
reflect a rise in the average interest rate spread, partially offset by a
decline in net interest-earning assets (total interest-earning assets less total
interest-bearing liabilities). The increase i the average interest rate spread
is primarily a result of a decrease in the cost of funds as well as increases in
the proportion of assets consisting of commercial real estate and multi-family
loans. The Company's average interest rate spread increased to 2.71% for fiscal
1999 from 2.67% for fiscal 1998, while the net interest margin decreased to
3.13% for fiscal 1999, from 3.28% for fiscal 1998. The average interest rate
spread for the three months ended September 30, 1999 increased to 2.89% from
2.36% for the comparable 1998 period, while the net interest margin increased to
3.16% for the 1999 three-month period from 2.89% a year earlier.
The provision for loan losses was $235,000 and $375,000 the years ended
September 30, 1999 and 1998, respectively. The provision in each period reflects
management's evaluation of the adequacy of the allowance for loan losses.
Factors considered include the volume and type of lending conducted, the
Company's previous loan loss experience, the known and inherent risks in the
loan portfolio, adverse situations that may affect the borrowers' ability to
repay, the estimated value of any underlying collateral and current economic
conditions. Non-performing loans totaled $755,000 at September 30, 1999, a
slight increase from $753,000 at September 30, 1998. The ratio of non-performing
loans to total loans receivable decreased to 0.25% at September 30, 1999
compared to 0.41% at September 30, 1998. The allowance for loan losses was $1.5
million or 0.50% of total loans receivable at September 30, 1999 compared to
$1.3 million or 0.70% of total loans receivable at September 30, 1998. The ratio
of the allowance for loan losses to non-performing loans was 199.07% at
September 30, 1999, compared to 172.91% at September 30, 1998.
<PAGE>
Non-interest income increased $102,000 to $1.5 million for the year ended
September 30, 1999 compared to $1.4 million for the prior year. The increase is
primarily attributable to increases in service charges and fee income and other
non-interest income, partially offset by decreases in the net gain on sales of
real estate mortgages held for sale and available-for-sale securities. The $
239,000 increase in service charges and fee income primarily reflects increases
in transaction volume. In fiscal 1999 mortgage loan sales totaled $37.4 million
resulting in net gains of $197,000 (including the recognition of mortgage
servicing assets), as compared to loan sales of $69.8 million in fiscal 1998,
which resulted in gains of $371,000. In addition, a provision for losses on
loans held for sale of $97,000 was charged to net gain on sales of loans for
fiscal 1999, no such provisions were made in fiscal 1998. Net gains on sale of
securities for year ended 1999 was $111,000 on sales of $17.6 million in
availabl for-sale securities compared to $117,000 in 1998 on sales of $28.2
million in available-for-sale securities. Other non-interest income for fiscal
1999 increased $43,000 from the prior year, reflecting a gain of $72,000 from
the sale of loan servicing rights in fiscal 1999.
Non-interest expense increased $1.5 million to $9.1 million for the year ended
September 30, 1999 compared to $7.6 million for the prior year. The current year
increase is primarily attributable to increases in compensation and benefits
expense, occupancy and equipment expense, and other non-interest expense.
Compensation and benefits expense increased $818,000 from the prior year
primarily due to increased costs related to additional staffing for the three
new in-store branches and the expansion of lending operations. The $311,000
increase in occupancy and equipment expense primarily reflects increased costs
associated with the establishment of three new branches and a lending center
during fiscal 1999. The $279,000 increase in other non-interest expense
primarily reflects expenses of $140,000 relating to the establishment of a real
estate investment trust, Yonkers REIT, Inc. (the "REIT"), a wholly owned
subsidiary of the Association. On September 30, 1999 $120.3 million in real
estate loans, wer held by the REIT. The assets transferred to the REIT are
viewed by regulators as part of the Association's assets in consolidation.
Income tax expense was approximately $1.6 million for fiscal 1999, a decrease
from $2.0 million for fiscal 1998, reflecting lower pre-tax income and effective
tax rates of 37.1% and 40.9% respectively. The decrease in the effective tax
rate reflects the ancillary benefits from the aforementioned REIT. Under current
law, all income earned by the REIT distributed to the Association in the form of
a dividend has the effect of reducing the Company's New York State income tax
expense.
The Company was organized in 1995, as the holding company for the Association.
The Association currently serves the financial needs of communities in its
market area through four traditional retail offices and one lending center
located in Yonkers, New York and four in-store branches, located in Wappingers
Falls, New York, Yorktown Heights, New York, Mt. Vernon, New York and
Poughkeepsie, New York.
<PAGE>
The Company's stock trades on The Nasdaq Stock Market under the symbol "YFCB".
This press release contains certain forward-looking statements consisting of
estimates with respect to the financial condition, results of operations and
business of the Company and the Bank. These estimates are subject to various
factors that could cause actual results to differ materially from these
estimates. Such factors include, but not limited to, (i) the effect that an
adverse movement in interest rates could have on net interest income, (ii)
customer preferences, (iii) national and local economi and market conditions,
(iv) higher than anticipated operating expenses, (v) a lower level of or higher
cost for deposits than anticipated, (vi) changes in accounting principles,
policies, or guidelines, and (vii) changes in legislation. The Company disclaims
any obligation to publicly announce future events or developments that may
affect the forward-looking statements herein.
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YONKERS FINANCIAL CORPORATION AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS, EXCEPT SHARE DATA)
<TABLE>
<CAPTION>
SEPTEMBER 30,
1999 1998
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<S> <C> <C>
ASSETS
Cash and cash equivalents:
Cash and due from banks $ 4,651 $ 3,195
Short-term investments -- 1,000
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Total cash and cash equivalents 4,651 4,195
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Securities:
Available for sale, at fair value (amortized cost of $120,996 in 1999
and $123,317 in 1998) 116,712 125,225
Held to maturity, at amortized cost (fair value of $21,959 in 1999
and $43,948 in 1998) 21,936 43,303
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Total securities 138,648 168,528
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Real estate mortgage loans held for sale, at lower of cost or market value 1,226 13,334
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Loans receivable, net:
Real estate mortgage loans 291,199 177,783
Consumer and commercial business loans 8,254 7,544
Allowance for loan losses (1,503) (1,302)
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Total loans receivable, net 297,950 184,025
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Accrued interest receivable 2,750 2,791
Federal Home Loan Bank stock 7,397 6,426
Office properties and equipment, net 1,984 1,258
Other assets 3,089 2,467
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Total assets $ 457,695 $ 383,024
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LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Deposits $ 272,974 $ 231,181
Securities repurchase agreements 99,987 107,790
FHLB advances 47,948 --
Other liabilities 4,769 2,251
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Total liabilities 425,678 341,222
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Commitments and contingencies
Stockholders' equity:
Preferred stock (par value $0.01 per share; 100,000
shares authorized; none issued or outstanding) -- --
Common stock (par value $0.01 per share: 4,500,000
shares authorized; 3,570,750 shares issued) 36 36
Additional paid-in capital 35,225 35,044
Unallocated common stock held by employee stock
ownership plan (1,857) (2,142)
Unamortized awards of common stock under management
recognition plan (621) (846)
Treasury stock, at cost (1,332,011 shares in 1999 and
844,511 shares in 1998) (21,866) (13,189)
Retained income, substantially restricted 23,652 21,754
Accumulated other comprehensive (loss) income (2,552) 1,145
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Total stockholders' equity 32,017 41,802
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$ 457,695 $ 383,024
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</TABLE>
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YONKERS FINANCIAL CORPORATION AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS, EXCEPT SHARE DATA)
<TABLE>
<CAPTION>
For the Three Months For the Year
Ended September 30, Ended September 30,
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1999 1998 1999 1998
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<S> <C> <C> <C> <C>
Interest and dividend income:
Loans $4,665 $3,663 $16,399 $13,243
Securities 2,382 2,936 9,869 11,750
Other earning assets 143 147 664 482
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Total interest and dividend income 7,190 6,746 26,932 25,475
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Interest expense:
Deposits 2,430 2,358 9,543 9,056
Securities repurchase agreements 1,166 1,560 4,530 4,718
FHLB advances 359 62 811 248
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Total interest expense 3,955 3,980 14,884 14,022
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Net interest income 3,235 2,766 12,048 11,453
Provision for loan losses 35 50 235 375
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Net interest income after provision for
loan losses 3,200 2,716 11,813 11,078
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Non-interest income:
Service charges and fees 331 221 1,090 851
Net gain (loss) on sales of real estate
mortgage loans held for sale 16 98 197 371
Net gain (loss) on sales of securities 13 (26) 111 117
Other 8 23 114 71
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Total non-interest income 368 316 1,512 1,410
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Non-interest expense:
Compensation and benefits 1,348 1,017 4,813 3,995
Occupancy and equipment 352 224 1,226 915
Federal deposit insurance costs 36 34 140 131
Data processing service fees 172 139 646 554
Other 643 454 2,267 1,988
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Total non-interest expense 2,551 1,868 9,092 7,583
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Income before income tax expense 1,017 1,164 4,233 4,905
Income tax expense 344 486 1,570 2,004
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Net income $ 673 $ 678 $ 2,663 $ 2,901
====== ====== ======= =======
Earnings per common share:
Basic $0.31 $0.28 $1.13 $1.12
Diluted 0.30 0.27 1.11 1.08
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</TABLE>
