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)
April 23, 1999
YONKERS FINANCIAL CORPORATION
(Exact name of Registrant as specified in its Charter)
Delaware 0-277716 13-3870836
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(State or other (Commission File No.) (IRS Employer Identification No.)
jurisdiction of incorporation)
One Manor House Square, Yonkers, New York 10701
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (914) 968-4500
N/A
(Former name or former address, if changed since last report)
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Item 5. Other Events
On April 23, 1999, the Registrant issued the attached press release
announcing its earnings for the quarter and six months ended March 31, 1999 and
the declaration of a quarterly cash dividend of $0.08 per share.
Item 7.
Financial Statements and Exhibits
(a) Exhibits
99. Press release, dated April 23, 1999.
2
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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.
YONKERS FINANCIAL CORPORATION
Date: April 27, 1999 By: /s/ Richard F. Komosinski
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Richard F. Komosinski, President
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DATE: April 23, 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 SIX MONTHS ENDED MARCH 31, 1999 AND
DECLARES QUARTERLY CASH DIVIDEND OF $0.08 PER SHARE
Yonkers, New York - April 23, 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 $667,000, or $0.27
diluted earnings per common share for the second fiscal quarter ended March 31,
1999, compared to net income of $688,000, or $0.25 diluted earnings per common
share for the second fiscal quarter ended March 31, 1998. Net income for the six
months ended March 31, 1999 amounted to $1.3 million or $0.54 diluted earnings
per common share compared to $1.5 million or $0.54 diluted earnings per common
share for the six months ended March 31, 1998.
The Company also announced that the Board of Directors, at its April 20, 1999
meeting, declared a cash dividend of $0.08 per share, payable May 21, 1999 to
holders of record as of May 5, 1999. The dividend represents the Company's
twelfth consecutive quarterly cash dividend since converting to stock form.
Richard F. Komosinski, the Company's President and Chief Executive Officer,
said, "Given the challenges of operating in an intensely competitive marketplace
along with the continued expansion of our franchise, we are pleased with our
financial results for the first half of fiscal 1999.
Total assets at March 31, 1999 amounted to $382.2 million, a decrease of
$829,000 from $383.0 million at September 30, 1998. However, loans and deposits,
representing the foundation of the Company's retail franchise, increased
significantly during this period.
Securities at March 31, 1999 decreased $25.0 million to $143.5 million from
$168.5 million at September 30, 1998, while cash and cash equivalents increased
$5.0 million to $9.2 million at March 31, 1999 from $4.2 million at September
30, 1998. Overall, total loans (loans receivable and mortgage loans held for
sale) increased $19.4 to $216.7 million at
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March 31, 1999 from $197.3 million at September 30, 1998. The loan growth during
the six months ended March 31, 1999 represents loan originations of $69.6
million, offset by principal collections of $20.8 million, loans sold of $29.3
million and loans transferred to real estate owned of $152,000.
Deposit liabilities increased $22.0 million to $253.2 million at March 31, 1999
from $231.2 million at September 30, 1998. Borrowings decreased $21.8 million to
$86.0 million at March 31, 1999 from $107.8 million at September 30, 1998.
Stockholders' equity amounted to $41.8 million at March 31, 1999 a $52,000
decrease from September 30, 1998. The decrease is primarily attributable to net
income retained after dividends of $932,000, a combined increase of $360,000
relating to the employee stock ownership plan and the management recognition
plan, offset by a decrease of $1.3 million in the after-tax net unrealized gain
on available-for-sale securities. The ratio of stockholders' equity to total
assets increased to 10.92% at March 31, 1999 from 10.91% at September 30, 1998.
Book value per share (computed based on total shares issued less treasury
shares) was $15.29 at March 31, 1999, a decrease from $15.33 at September 30,
1998.
Net interest income for the three months ended March 31, 1999 remained
relatively stable at $2.9 million, a slight decrease of $60,000 from the prior
year's quarter. Net interest income for the six months ended March 31, 1999
totaled $5.7 million as compared to $6.0 million for the six months ended March
31, 1998. The decreases reflect a decline in net interest-earning assets (total
interest-earning assets less total interest-bearing liabilities), and declines
in the average interest rate spread to 2.61% and 2.58% for the three and six
months ended March 31, 1999, respectively, from 2.88% and 3.03% for the prior
year's respective periods. The decline in the average interest rate spread
primarily reflects lower asset yields from the origination of new mortgage loans
(including refinancings) in the current lower interest rate environment. The
Company's net interest margin decreased to 3.08% and 3.07% for the three and six
months ended March 31, 1999, respectively, from 3.53% and 3.69% for the three
and six months ended March 31, 1998.
The provision for loan losses was $75,000 for each of the quarters ended March
31, 1999 and 1998. For the six months ended March 31, 1999 and 1998 the
provision for loan losses amounted to $150,000 and $250,000, 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 $777,000 at March
31, 1999, up from $753,000 at September 30, 1998 and down from $1.1 million at
March 31, 1998. The ratio of non-performing loans to total loans receivable was
0.36% at March 31, 1999, compared to 0.41% at September 30, 1998 and 0.71% at
March 31, 1998. The allowance for loan losses was $1.5 million or 0.67% of
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total loans receivable at March 31, 1999, compared to $1.3 million or 0.70% of
total loans receivable at September 30, 1998 and $1.2 million or 0.82% at March
31, 1998. The ratio of the allowance for loan losses to non-performing loans was
187.00% at March 31, 1999, compared to 172.91% at September 30, 1998 and 115.52%
at March 31, 1998.
Non-interest income for the three months ended March 31, 1999 increased $278,000
to $526,000, from $248,000 for the comparable period in 1998. For the six months
ended March 31, 1999, non-interest income increased $331,000 to $936,000
compared to $605,000 for the same period in the prior year. The increases are
primarily attributable to increases in the net gain on sales of loans held for
sale, the net gain on sales of securities, other non-interest income, and
service charges and fee income. Mortgage loans sold during the six months ended
March 31, 1999 amounted to $29.3 million (including $9.2 million in the current
quarter) resulting in net gains of $246,000, as compared to loan sales of $35.2
million during the six months ended March 31, 1998 (including $12.3 million in
the three months ended March 31, 1998) which resulted in net gains of $194,000.
Net gain on sales of securities amounted to $73,000 for the six months ended
March 31, 1999 reflecting sales of $17.2 million in available-for-sale
securities during the period, while losses of $52,000 were incurred on sales of
$6.8 million in the prior year's period. The increase in other non-interest
income primarily reflects a $72,000 gain on the sale of loan servicing rights in
the current quarter. The increase in service charges and fee income primarily
reflects increases in transaction volume.
Non-interest expense increased $304,000 to $2.3 million for the three months
ended March 31, 1999, compared to $2.0 million for the three months ended March
31, 1998. For the six months ended March 31, 1999, non-interest expense
increased $536,000 to $4.3 million compared to $3.8 million for the same period
in the prior year. The current year increases are primarily attributable to
increases in compensation and benefits expense and occupancy and equipment
expense. Compensation and benefits expense for the six months ended March 31,
1999 increased $304,000 from the prior year primarily due to increased costs
relating to additional staffing in the loan department and the two in-store
branches, coupled with performance-based increases for certain staff members.
The increase of $116,000 in occupancy and equipment expense for the six months
ended March 31, 1999 primarily reflects increased costs associated with the
establishment of an in-store branch in December 1997 and one in October 1998 and
a lending center in November 1998. Included in non- interest expense for the
three and six months ended March 31, 1999 were expenses of $70,000 relating to
the establishment of a real estate investment trust, Yonkers REIT, Inc. (the
"REIT"), a wholly-owned subsidiary of the Association. On March 31, 1999, $119.3
million in real estate loans was transferred from the Association to 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 $394,000 for the three months ended March
31, 1999 and $459,000 for the comparable 1998 period, reflecting lower pre-tax
income and effective tax rates of 37.1% and 40.0%, 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
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the effect of reducing the Company's New York State income tax expense. For the
six months ended March 31, 1999, income tax expense was approximately $857,000
and $1.0 million for the comparable 1998 period, reflecting lower pre-tax income
and effective tax rates of 39.1% and 40.7%, respectively.
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 two in-store branches, located in Wappingers
Falls, New York and Yorktown Heights, New York.
The Company's stock trades on The Nasdaq Stock Market under the symbol "YFCB".
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YONKERS FINANCIAL CORPORATIOSN AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(In thousands, except per share data)
<TABLE>
<CAPTION>
For the Three Months For the Six Months
Ended March 31, Ended March 31,
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1999 1998 1999 1998
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<S> <C> <C> <C> <C>
Interest and dividend income:
Loans $3,785 $3,137 $7,544 $6,218
Securities 2,503 3,008 5,182 5,872
Other earning assets 184 101 367 210
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Total interest and dividend income 6,472 6,246 13,093 12,300
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Interest expense:
Deposits 2,340 2,214 4,721 4,400
Securities repurchase agreements 1,068 1,036 2,443 1,837
FHLB advances 171 43 180 87
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Total interest expense 3,579 3,293 7,344 6,324
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Net interest income 2,893 2,953 5,749 5,976
Provision for loan losses 75 75 150 250
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Net interest income after provision
for loan losses 2,818 2,878 5,599 5,726
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Non-interest income:
Service charges and fees 265 212 526 433
Net gain (loss) on sales of real estate
mortgage loans held for sale 181 58 318 194
Net gain (loss) on sales of securities 70 (37) 73 (52)
Other 10 15 19 30
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Total non-interest income 526 248 936 605
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Non-interest expense:
Compensation and benefits 1,115 975 2,271 1,967
Occupancy and equipment 323 223 551 435
Federal deposit insurance costs 35 32 68 64
Data processing service fees 169 128 319 259
Other 641 621 1,135 1,083
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Total non-interest expense 2,283 1,979 4,344 3,808
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Income before income tax expense 1,061 1,147 2,191 2,523
Income tax expense 394 459 857 1,027
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Net income $ 667 $688 $1,334 $1,496
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Earnings per common share (note 3):
Basic $ 0.27 $ 0.26 $ 0.54 $ 0.56
Diluted 0.27 0.25 0.54 0.54
</TABLE>
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<TABLE>
<CAPTION>
March 31, September 30,
1999 1998
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<S> <C> <C>
ASSETS
Cash and cash equivalents:
Cash and due from banks $ 5,177 $ 3,195
Short-term investments 4,031 1,000
Total cash and cash equivalents 9,208 4,195
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Securities:
Available for sale, at fair value (amortized cost of $116,590
at March 31,1999 and $123,317 at September 30, 1998) 116,258 125,225
Held to maturity, at amortized cost (fair value of $27,517
at March 31,1999 and $43,948 at September 30, 1998) 27,286 43,303
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Total securities 143,544 168,528
Real estate mortgage loans held for sale, at lower
of cost or market value 8,513 13,334
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Loans receivable, net:
Real estate mortgage loans 202,014 177,783
Consumer and commercial business loans 7,623 7,544
Allowance for loan losses (1,453) (1,302)
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Total loans receivable, net 208,184 184,025
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Accrued interest receivable 2,288 2,791
Federal Home Loan Bank ("FHLB") stock 6,426 6,426
Office properties and equipment, net 1,747 1,258
Other assets 2,285 2,467
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Total assets $ 382,195 $ 383,024
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LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Deposits $ 253,225 $ 231,181
Securities repurchase agreements 71,012 107,790
FHLB advances 15,000 0
Deferred income taxes 0 726
Other liabilities 1,208 1,525
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Total liabilities 340,445 341,222
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Commitments and contigencies
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 35,119 35,044
Unallocated common stock held by employee stock
ownership plan ("ESOP") (2,000) (2,142)
Unamortized awards of common stock under management
recognition plan ("MRP") (767) (846)
Treasury stock, at cost (839,511 shares at
March 31, 1999 and 844,511 shares at
September 30, 1998) (13,125) (13,189)
Retained income, substantially restricted 22,686 21,754
Net unrealized gain on available-for-sale
securities, net of taxes (199) 1,145
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Total stockholders' equity 41,750 41,802
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Total liabilities and stockholders' equity $ 382,195 $ 383,024
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