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)
January 14, 2000
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 January 14, 2000, Yonkers Financial Corporation issued the press release
attached as Exhibit 99.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(a) Exhibits
99 Press release dated January 14, 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.
YONKERS FINANCIAL CORPORATION
Date: January 27, 2000 By: /s/ Richard F. Komosinski
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Richard F. Komosinski, President and
Chief Executive Officer
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EXHIBIT 99
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DATE: January 14, 2000
CONTACTS: Richard F. Komosinski, President and CEO
Joseph D. Roberto, Vice President, Treasurer and CFO
PHONE: 914-965-2500
FOR IMMEDIATE RELEASE
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YONKERS FINANCIAL CORPORATION REPORTS A 25.9% INCREASE IN DILUTED
EARNINGS PER SHARE FOR THE QUARTER ENDED DECEMBER 31, 1999
AND DECLARES QUARTERLY CASH DIVIDEND OF $0.09 PER SHARE
SUBSTANTIAL INCREASE IN ASSETS ALSO NOTED
Yonkers, New York - January 14, 2000, Yonkers Financial Corporation
(NASDAQ: YFCB) (the "Company"), the holding company for The Yonkers Savings and
Loan Association, FA (the "Association"), reported net income of $704,000 or
diluted earnings per common share of $0.34 for the quarter ended December 31,
1999, compared to net income of $667,000 or diluted earnings per common share of
$0.27 for the quarter ended December 31, 1998, representing a 25.9% increase in
diluted earnings per share. Basic earnings per common share were $0.35 for the
quarter ended December 31, 1999, a 29.6% increase, from $0.27 for the 1998
quarter.
The Company also announced that the Board of Directors, at its January 12,
2000 meeting, declared a cash dividend of $0.09 per share, payable February 18,
2000 to holders of record as of February 7, 2000. The dividend represents the
Company's fifteenth consecutive quarterly cash dividend since converting to
stock form. Richard F. Komosinski, the Company's President and Chief Executive
Officer, said, "We have started fiscal 2000 on a very positive note, with
dramatically increased earnings per share and impressive growth of our company.
We remain committed to enhancing shareholder value and the Board believes that
the substantial increase in earnings per share represents a significant increase
in value for our shareholders."
Total assets at December 31, 1999 amounted to $506.2 million, an increase
of $48.5 million, or 10.6%, from $457.7 million at September 30, 1999. Asset
growth during the period was funded primarily through proceeds from borrowings
under Federal Home Loan Bank ("FHLB") advances and securities repurchase
agreements, as well as growth in the Company's deposit base relating to the
expansion of its retail franchise. Total borrowings increased by $38.1 million
to $186.0 million at December 31, 1999 from $147.9 million at September 30,
1999. Deposits increased $12.7 million to $285.7 million at December 31, 1999
from $273.0 million at September 30, 1999.
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 $49.5 million or 16.6%, to $348.7 million at December 31, 1999 from
$299.2 million at September 30, 1999. The loan growth during the quarter ended
December
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31, 1999 primarily reflects originations (net of repayments) of $52.5 million,
less $3.0 million in loans sold. Total securities decreased $5.1 million to
$133.5 million at December 31, 1999 million from $138.6 million at September 30,
1999.
Stockholders' equity amounted to $31.6 million at December 31, 1999 a
$403,000 decrease from September 30, 1999. The decrease is primarily
attributable to a $1.2 million decrease in the after-tax net unrealized loss on
available-for-sale securities, partially offset by net income retained after
dividends of $509,000, and a combined increase of $239,000 relating to the
employee stock ownership plan and the management recognition plan. The ratio of
stockholders' equity to total assets decreased to 6.2% at December 31, 1999 from
7.0% at September 30, 1999 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 $14.12 at December 31, 1999, a
slight decrease from $14.30 at September 30, 1999.
Net interest income for the three months ended December 31, 1999 was $3.5
million, an increase of $596,000 from $2.9 million for the prior year's period.
The increase primarily reflects 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
in the average interest rate spread is primarily a result of a higher yield on
the securities portfolio, as well as a slight decrease in the cost of funds. The
Company's average interest rate spread for the three months ended December 31,
1999 increased to 2.65% from 2.51% for the comparable 1998 period, while the net
interest margin decreased to 2.88% for the 1999 three-month period from 3.04% a
year earlier.
The provision for loan losses was $35,000 and $75,000 for the three months
ended December 31, 1999 and 1998, respectively. The provision in each period
reflects management's evaluation of the adequacy of the allowance for loan
losses. Non-performing loans totaled $766,000 at December 31, 1999, compared to
$755,000 at September 30, 1999 and $720,000 at December 31, 1998. The ratio of
non-performing loans to total loans receivable was 0.22% at December 31, 1999,
compared to 0.25% at September 30, 1999 and 0.37% at December 31, 1998. The
allowance for loan losses was $1.6 million or 0.44% of total loans receivable at
December 31, 1999, compared to $1.5 million or 0.50% of total loans receivable
at September 30, 1999 and $1.4 million or 0.70% at December 31, 1998. The ratio
of the allowance for loan losses to non-performing loans was 203.26% at December
31, 1999, compared to 199.07% at September 30, 1999 and 191.11% at December 31,
1998.
Non-interest income for the three months ended December 31, 1999 increased
$20,000 to $310,000, from $290,000 for the comparable period in 1998. The
increase is primarily attributable to a $128,000 increase in service charges and
fee income, substantially offset by a $114,000 decrease in the net gain on sales
of real estate mortgage loans held for sale. The increase in service charges and
fee income primarily results from increases in transaction volume, in addition
to $15,000 in income from Yonkers Financial Services, Inc, a wholly-owned
subsidiary of the Association that began its operations to sell annuities and
mutual funds in the quarter ended December 31, 1999. In the three months ended
December 31, 1999, mortgage loan sales totaled $3.0 million resulting in net
gains of $23,000 (including the recognition of mortgage servicing assets), as
compared to loan sales of $20.1 million in the 1998 quarter, which resulted in
gains of $137,000.
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Non-interest expense increased $662,000 to $2.6 million for the three
months ended December 31, 1999, compared to $1.9 million for the three months
ended December 31, 1998. Compensation and benefits expense increased $311,000
from the prior year primarily due to increased costs relating to additional
staffing in three new in-store branches and the loan department coupled with
performance-based increases for certain staff members. The increases of $110,000
in occupancy and equipment expense and $29,000 in data processing service fees
primarily reflects increased costs associated with the establishment of in-store
branches in May 1999, September 1999, and October 1999. The $207,000 increase in
other non-interest expense is primarily attributable to increased costs relating
to: the three additional in-store branches; increased production in the loan
department and the establishment of a real estate investment trust, Yonkers
REIT, Inc. (the "REIT"), a wholly-owned subsidiary of the Association, in March
1999.
Income tax expense was approximately $420,000 for the three months ended
December 31, 1999 and $463,000 for the comparable 1998 period, reflecting
effective tax rates of 37.4% and 41.0%, 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 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 five in-store branches, located in
Wappingers Falls, Yorktown Heights, Mt. Vernon, Cortlandt Manor and
Poughkeepsie, New York.
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 (i) the effect that an adverse movement in
interest rates could have on net interest income, (ii) customer preferences,
(iii) national and local economic and market conditions, (iv) higher than
anticipated operating expenses and (v) a lower level of or higher cost for
deposits than anticipated. 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 SHEET
(Unaudited)
(In thousands, except share data)
December 31, September 30,
<S> <C> <C>
1999 1999
ASSETS
Cash and cash equivalents:
Cash and due from banks $ 5,666 $ 4,651
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Total cash and cash equivalents 5,666 4,651
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Securities:
Available for sale, at fair value (amortized cost of $119,093 at
December 31, 1999 and $120,996 at September 30, 1999) 112,920 116,712
Held to maturity, at amortized cost (fair value of $20,470 at
December 31, 1999 and $21,959 at September 30, 1999) 20,573 21,936
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Total securities 133,493 138,648
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Real estate mortgage loans held for sale, at lower of cost or market value 2,108 1,226
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Loans receivable, net:
Real estate mortgage loans 339,393 291,199
Consumer and commercial business loans 8,770 8,254
Allowance for loan losses (1,557) (1,503)
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Total loans receivable, net 346,606 297,950
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Accrued interest receivable 3,007 2,750
Federal Home Loan Bank stock 9,298 7,397
Office properties and equipment, net 2,083 1,984
Other assets 3,912 3,089
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Total assets $506,173 $ 457,695
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LIABILITIES AND STOCKHOLDER'S EQUITY
Liabilities:
Deposits $285,700 $ 272,974
Securities repurchase agreements 108,771 99,987
FHLB advances 77,194 47,948
Other liabilities 2,894 4,769
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Total liabilities 474,559 425,678
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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 35,320 35,225
Unallocated common stock held by employee stock ownership plan (1,785) (1,857)
Unamortized awards of common stock under management recognition plan (548) (621)
Treasury stock, at cost (1,332,011) shares (21,866) (21,866)
Retained income, substantially restricted 24,161 23,652
Accumulated other comprehensive loss (3,704) (2,552)
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Total stockholders' equity 31,614 32,017
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Total liabilities and stockholders' equity $506,173 $457,695
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YONKERS FINANCIAL CORPORATION AND SUBSIDIARY
CONSOLIDATE STATEMENTS OF INCOME
(Unaudited)
(In Thousands, except per share data)
<CAPTION>
For the Three Months
Ended December 31
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1999 1998
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Interest and dividend income:
Loans 6,042 3,759
Securities 2,387 2,679
Other earning assets 159 183
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Total interest and dividend income 8,588 6,621
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Interest expense:
Deposits 2,675 2,381
Securities repurchase agreements 1,614 1,248
FHLB advances 847 136
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Total interest expense 5,136 3,765
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Net interest income 3,452 2,856
Provision for loan losses 35 75
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Net interest income after provision for loan losses 3,417 2,781
Non-interest income:
Service charges and fees 269 141
Net gain on sales of real estate mortgage loans held for sale 23 137
Net gain on sales of securities 4 3
Other 14 9
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Total non-interest income 310 290
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Non-interest expense:
Compensation and benefits 1,467 1,156
Occupancy and equipment 338 228
Data processing service fees 179 150
Federal deposit insurance costs 38 33
Other 581 374
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Total non-interest expense 2,603 1,941
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Income before income tax expense 1,124 1,130
Income tax expense 420 463
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Net income 704 667
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Earnings per common share:
Basic 0.35 0.27
Diluted 0.34 0.27
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