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)
July 21, 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 July 21, 2000, Yonkers Financial Corporation issued the press release
attached as Exhibit 99.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(a) Exhibits
99 Press release dated July 21, 2000
2
<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: July 25, 2000 By: /s/ Richard F. Komosinski
---------------- ------------------------------------
Richard F. Komosinski, President and
Chief Executive Officer
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EXHIBIT 99
<PAGE>
DATE: July 21, 2000
CONTACTS: Richard F. Komosinski, President and CEO
Joseph D. Roberto, Senior Vice President, Treasurer and CFO
PHONE: 914-965-2500
FOR IMMEDIATE RELEASE
---------------------
YONKERS FINANCIAL CORPORATION REPORTS INCREASES OF
31.7% IN NET INCOME AND 55.6% IN DILUTED EARNINGS
PER SHARE FOR THE QUARTER ENDED JUNE 30, 2000 AND
DECLARES QUARTERLY CASH DIVIDEND OF $0.09 PER SHARE
Yonkers, New York - July 21, 2000 Yonkers Financial Corporation (NASDAQ:
YFCB) (the "Company"), the holding company for The Yonkers Savings and Loan
Association, FA, reported diluted earnings per common share of $0.42 for the
quarter ended June 30, 2000, an increase of 55.6% compared to $0.27 reported for
the quarter ended June 30, 1999. Net income increased by 31.7%, or $208,000, to
$865,000. For the nine months ended June 30, 2000 diluted earnings per common
share was $1.15, an increase of 42.0% compared to $0.81 in the prior year
period. Net income for the nine months ended June 30, 2000 amounted to $2.4
million, an increase of 18.7% from last year.
The Company also announced that the Board of Directors, at its July 18,
2000 meeting, declared a cash dividend of $0.09 per share, payable August 14,
2000 to holders of record as of July 31, 2000. The dividend represents the
Company's twentieth consecutive quarterly cash dividend since converting to
stock form.
Commenting on the Company's results Richard F. Komosinski, the Company's
President and Chief Executive Officer, said, "We are pleased with our solid
financial performance and are particularly proud of the double digit increases
in net income and earnings per share. The dramatic growth in our loan portfolio,
particularly higher-yielding multi-family and mixed-use commercial real estate
loans, and deposits is consistent with our commitment to enhancing shareholder
value. "
Total assets at June 30, 2000 amounted to $523.1 million, an increase of
$65.4 million, or 14.3%, from $457.7 million at September 30, 1999. Asset growth
during the period was funded primarily through growth in the Company's deposit
base relating to the expansion of its retail franchise, as well as proceeds from
borrowings under Federal Home Loan Bank ("FHLB") advances and securities
repurchase agreements. Deposits increased $46.7 million to $319.7 million at
June 30, 2000 from $273.0 million at September 30, 1999. Total borrowings
increased by $17.5 million to $165.4 million at June 30, 2000 from $147.9
million at September 30, 1999.
Funds provided by deposit growth and borrowings, 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 $66.8 million or 22.3%, to $366.0 million at June 30, 2000 from $299.2
million at September 30, 1999. Loan quality remains high with non-performing
loans totaling $285,000 or 0.08% of total loans receivable compared to $755,000
or 0.25% at September 30, 1999.
<PAGE>
Stockholders' equity increased to $33.3 million at June 30, 2000 from $32.0
million at September 30, 1999, while the ratio of stockholders' equity to total
assets decreased to 6.4% from 7.0% at September 30, 1999. Book value per share
increased to $14.94 at June 30, 2000 from $14.30 at September 30, 1999.
Net interest income for the three months ended June 30, 2000 was $3.5
million, an increase of $454,000, or 14.8%, from $3.1 million for the same
period in 1999. Net interest income for the nine months ended June 30, 2000 was
$10.5 million, an increase of $1.7 million or 19.1% over the same period in the
prior year. These increases reflect the positive effect on net interest income
of higher average interest-earning assets, primarily attributable to the
investment of proceeds from deposit growth and borrowings. The increase for the
three months ended June 30, 2000 was partially offset by a decline in the
average interest rate spread to 2.52% from 2.82% at June 30, 1999. For the nine
months ended June 30, 2000 the average interest rate spread decreased to 2.58%
from 2.65% for the same period a year earlier. The net interest margin for the
three and nine months ended June 30, 2000 was 2.77% and 2.82%, respectively,
compared to 3.23% and 3.12% for the respective 1999 periods.
Non-interest income for the three months ended June 30, 2000 increased
$248,000 to $413,000 from $165,000 for the three months ended June 30, 1999.
This increase reflects a $172,000 increase in service charges and fee income, a
$98,000 increase in the net gain on sales of real estate mortgage loans held for
sale, partially offset by a $16,000 decrease in the net gain on sales of
securities and a $6,000 decrease in other non-interest income. The increase in
service charges and fee income results from increases in transaction volume as
well as $82,000 in income from our recently launched annuities and mutual funds
sales program. The increase in net gain on sales of real estate mortgage loans
held for sale relates to a $97,000 provision for losses on loans held for sale
charged in the quarter ended June 30, 1999, no such provisions were made in the
recent quarter. For the nine months ended June 30, 2000 non-interest income
increased to $1.1 million from $898,000 for the 1999 period.
Non-interest expense increased $338,000 to $2.5 million for the three
months ended June 30, 2000 compared to $2.2 million for the three months ended
June 30, 1999. For the nine months ended June 30, 2000 non-interest expense
increased $1.4 million to $7.7 million compared to $6.3 million in the prior
year. These increases primarily reflect increased costs associated with (i) the
establishment of three new in-store branches in May 1999, September 1999 and
October 1999, (ii) expansion of the loan department and (iii) costs associated
with the proxy fight that was concluded in January of this year.
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".
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This news release contains various 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. These factors include, but are not limited to, (i) the effect that an
adverse movement in interest rates could have on net interest income, (ii)
changes in customer preferences for our products and services, (iii) changes in
national and local economic and market conditions, (iv) higher than anticipated
operating expenses, (v) a lower level of or higher cost for deposits or a higher
cost for borrowings than anticipated, (vi) changes in accounting principles,
policies or guidelines, and (vii) legislation or regulations adversely affecting
the bank or the company.
-END-
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<TABLE>
YONKERS FINANCIAL CORPORATION AND SUBSIDIARY
CONSOLIDATED BALANCE SHEET
(Unaudited)
(In thousands, except share data)
June 30, September 30,
<S> <C> <C>
2000 1999
---------- -------------
ASSETS
Cash and cash equivalents:
Cash and due from banks $ 6,308 $ 4,651
Short-term Investments 4,500 ---
-------- --------
Total cash and cash equivalents 10,808 4,651
-------- --------
Securities:
Available for sale, at fair value (amortized cost of $116,695 at
June 30, 2000 and $120,996 at September 30, 1999) 110,869 116,712
Held to maturity, at amortized cost (fair value of $17,100 at
June 30, 2000 and $21,959 at September 30, 1999) 17,290 21,936
-------- --------
Total securities 128,159 138,648
-------- --------
Real estate mortgage loans held for sale, at lower of cost or market value 1,565 1,226
-------- --------
Loans receivable, net:
Real estate mortgage loans 355,576 291,199
Consumer and commercial business loans 10,464 8,254
Allowance for loan losses (1,634) (1,503)
-------- --------
Total loans receivable, net 346,406 297,950
-------- --------
Accrued interest receivable 3,343 2,750
Federal Home Loan Bank stock 9,298 7,397
Office properties and equipment, net 1,971 1,984
Other assets 3,505 3,089
-------- --------
Total assets $523,055 $457,695
======== ========
LIABILITIES AND STOCKHOLDER'S EQUITY
Liabilities:
Deposits $319,713 $ 272,974
Securities repurchase agreements 91,012 99,987
FHLB advances 74,400 47,948
Other liabilities 4,631 4,769
-------- --------
Total liabilities 489,756 425,678
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 35,401 35,225
Unallocated common stock held by employee stock ownership plan (1,643) (1,857)
Unamortized awards of common stock under management recognition plan (402) (621)
Treasury stock, at cost (1,322,011) shares in 2000 and
1,332,011 shares in 1999) (22,037) (21,866)
Retained income, substantially restricted 25,440 23,652
Accumulated other comprehensive (loss) (3,496) (2,552)
-------- --------
Total stockholders' equity 33,299 32,017
-------- --------
Total liabilities and stockholders' equity $523,055 $457,695
======== ========
</TABLE>
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<TABLE>
YONKERS FINANCIAL CORPORATION AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(In Thousands, except per share data)
<CAPTION>
For the Three Months For the Nine Months
Ended June 30, Ended June 30,
-------------------- ---------------------
2000 1999 2000 1999
-------- ------- -------- --------
<S> <C> <C> <C> <C>
Interest and dividend income:
Loans $ 6,708 $ 4,190 $ 19,213 $ 11,734
Securities 2,287 2,306 7,001 7,488
Other earning assets 234 153 574 520
-------- -------- -------- --------
Total interest and dividend income 9,229 6,649 26,788 19,742
-------- -------- -------- --------
Interest expense:
Deposits 3,106 2,392 8,584 7,113
Securities repurchase agreements 1,381 1,048 4,560 3,364
FHLB advances 1,224 145 3,152 452
-------- -------- -------- --------
Total interest expense 5,711 3,585 16,296 10,929
-------- -------- -------- --------
Net interest income 3,518 3,064 10,492 8,813
Provision for loan losses 75 50 145 200
-------- -------- -------- --------
Net interest income after provision for loan losses 3,443 3,014 10,347 8,613
-------- -------- -------- --------
Non-interest income:
Service charges and fees 361 189 976 512
Net gain on sales of real estate mortgage loans held for sale 33 (65) 80 181
Net gain (loss) on sales of securities 9 25 10 98
Other 10 16 75 107
-------- -------- -------- --------
Total non-interest income 413 165 1,141 898
-------- -------- -------- --------
Non-interest expense:
Compensation and benefits 1,406 1,194 4,269 3,465
Occupancy and equipment 373 324 1,067 874
Data processing service fees 190 154 578 473
Federal deposit insurance costs 14 36 66 104
Other 508 445 1,760 1,378
-------- -------- -------- --------
Total non-interest expense 2,491 2,153 7,740 6,294
-------- -------- -------- --------
Income before income tax expense 1,365 1,026 3,748 3,217
Income tax expense 500 369 1,385 1,226
-------- -------- -------- --------
Net income $ 865 $ 657 $ 2,363 $ 1,991
======== ======== ======== ========
Earnings per common share:
Basic $ 0.43 $ 0.28 $ 1.18 $ 0.82
Diluted 0.42 0.27 1.15 0.81
======== ======== ======== ========
</TABLE>
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YONKERS FINANCIAL CORPORATION AND SUBSIDIARY
SELECTED FINANCIAL RATIOS AND OTHER DATA
(Unaudited)
(Dollars in Thousands)
At or
For the Three Months
Ended June 30,
--------------------
2000 1999
-------- -------
Performance Ratios:
Return on average assets 0.62% 0.69%
Return on average equity 9.86 6.53
Average interest rate spread 2.58 2.65
Net interest margin 2.82 3.12
Efficiency Ratio 66.60 65.47
Net interest income to non-interest expense 135.56 140.02
Non-interest expense to average assets 2.04 2.18
Average interest-earning assets to average
interest-bearing liabilities 105.65 112.20
Capital Ratios:
Average equity to average assets 6.32% 10.57%
Equity to total assets at end of period 6.37 9.71
Total risk-based capital 14.94 24.53
Asset Quality and Other Data:
Non-performing loans 285 706
Real estate owned, net --- 183
----- -----
Total non-performing assets 285 889
Asset quality ratios:
Non-performing loans to total loans 0.08% 0.32%
Non-performing assets to total assets 0.05 0.23
Allowance for loan losses to:
Non-performing loans to total loans 573.33 210.91
Total loans 0.45 0.67
