<PAGE> 1
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 1997
or
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
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Commission File Number 0-23271
RICHMOND COUNTY FINANCIAL CORP.
- --------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
DELAWARE 06-1498455
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(State or other jurisdiction of incorporation (I.R.S.Employer
or organization) Identification No.)
1214 Castleton Avenue, Staten Island, New York 10310
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(Address of principal executive offices) (Zip Code)
(718) 448-2800
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(Registrant's telephone number, including area code)
Not Applicable
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(Former name, former address and former fiscal year, if changes
since last report)
Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the Securities Exchange
Act of 1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.
Yes No X
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APPLICABLE ONLY TO CORPORATE ISSUERS.
Indicate the number of shares outstanding of each of the issuer's
classes of common stock, as of the latest practicable date: No shares were
outstanding as of January 28, 1998.
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PART I. FINANCIAL INFORMATION
Item 1. Financial Statements.
--------------------
Richmond County Financial Corp. is a newly formed holding company formed
for the purpose of acquiring all of the common stock of Richmond County Savings
Bank concurrent with its conversion from mutual to stock form of organization.
At this time and until the conversion is complete, Richmond County Financial
Corp. is a noncapitalized shell corporation with no business activities. For a
further discussion of Richmond County Financial Corp.'s formation and intended
operations see the Form S-1 Registration Statement as amended, initially filed
on October 2, 1997 and declared effective on December 15, 1997. The description
of Richmond County Financial Corp. in these filings is incorporated herein by
reference.
Item 2. Management's Discussion and Analysis of Financial Condition and
---------------------------------------------------------------
Results of Operations.
----------------------
See Item 1.
PART II. OTHER INFORMATION
Item 1. Legal Proceedings.
-----------------
None.
Item 2. Changes in Securities and Use of Proceeds.
-----------------------------------------
None.
Item 3. Defaults Upon Senior Securities.
-------------------------------
None.
Item 4. Submission of Matters to a Vote of Security Holders.
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None.
Item 5. Other Information.
-----------------
None.
Item 6. Exhibits and Reports on Form 8-K (ss.249.308 of this Chapter).
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None.
2
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<TABLE>
<CAPTION>
RICHMOND COUNTY SAVINGS BANK
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(IN THOUSANDS)
SEPTEMBER 30, JUNE 30,
1997 1997
------------------- ------------------
(Unaudited)
ASSETS
<S> <C> <C>
Cash and due from banks .................................... $ 24,497 $ 26,543
Federal funds sold ......................................... 4,000 6,000
Securities held to maturity:
Investment securities ................................ 187,469 205,201
Mortgage-backed and mortgage related securities ...... 147,737 185,122
Securities available for sale:
Investment securities................................. 40,764 19,706
Mortgage-backed and mortgage related securities....... 76,286 27,398
Loans receivable:
Real estate loans .................................... 487,380 471,601
Other loans .......................................... 34,050 30,127
Less allowance for loan losses........................ (5,914) (5,470)
---------- ----------
Total loans receivable, net ................................ 515,516 496,258
Banking premises and equipment, net ........................ 12,087 12,058
Accrued interest receivable ................................ 8,361 8,268
Other real estate owned .................................... 786 662
Net deferred tax assets .................................... 2,579 2,942
Other assets ............................................... 3,698 3,212
---------- ----------
TOTAL ASSETS ............................................... $1,023,780 $ 993,370
========== =========
LIABILITIES AND NET WORTH
Demand deposits ............................................ $ 91,135 $ 92,959
Savings, NOW and Money market accounts ..................... 487,949 493,506
Certificates of deposit .................................... 307,487 298,066
---------- ---------
Total deposits ....................................... 886,571 884,531
Securities sold under agreements to repurchase 25,639 --
Accrued expenses and other liabilities ..................... 7,317 7,974
---------- ---------
Total liabilities 919,527 892,505
Net worth ............................................ 104,253 100,865
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TOTAL LIABILITIES AND NET WORTH ............................ $1,023,780 $ 993,370
========== =========
</TABLE>
See accompanying notes to unaudited consolidated financial statements.
3
<PAGE> 4
<TABLE>
<CAPTION>
RICHMOND COUNTY SAVINGS BANK
CONSOLIDATED STATEMENTS OF INCOME
(IN THOUSANDS)
THREE MONTHS ENDED
SEPTEMBER 30,
-------------------------------------
(Unaudited)
1997 1996
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<S> <C> <C>
INTEREST INCOME:
Loans ................................................ $ 10,319 $ 9,006
Debt and equity securities ........................... 3,153 4,939
Mortgage-backed and mortgage related securities ...... 3,848 1,395
Federal funds sold ................................... 94 295
Other ................................................ 340 122
-------- -------
Total interest income .......................... 17,754 15,757
-------- -------
INTEREST EXPENSE:
Deposits ............................................. 7,519 6,697
Securities sold under repurchase agreements .......... 77 --
-------- -------
Total interest expense ......................... 7,596 6,697
-------- -------
NET INTEREST INCOME....................................... 10,158 9,060
Provision for loan losses ................................ 450 400
-------- -------
Net interest income after provision for loan losses ...... 9,708 8,660
-------- -------
NON-INTEREST INCOME:
Fee income ........................................... 818 728
Net loss on sale of securities and loans ............. (5) (117)
-------- -------
Total non-interest income ...................... 813 611
-------- -------
NON-INTEREST EXPENSE:
Salaries and employee benefits ....................... 2,459 2,466
Occupancy costs ...................................... 791 754
Computer service fees ................................ 639 540
Advertising .......................................... 153 116
Amortization of deposit premium ...................... 78 78
FDIC insurance premiums .............................. 38 57
Other ................................................ 794 755
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Total non-interest expense ..................... 4,952 4,766
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Income before income taxes................................ 5,569 4,505
Provision for income taxes ............................... 2,716 2,117
-------- -------
NET INCOME................................................ $ 2,853 $ 2,388
======== =======
</TABLE>
See accompanying notes to unaudited consolidated financial statements.
4
<PAGE> 5
<TABLE>
<CAPTION>
RICHMOND COUNTY SAVINGS BANK
CONSOLIDATED STATEMENTS OF CASH FLOWS
(IN THOUSANDS)
THREE MONTHS ENDED
SEPTEMBER 30,
-----------------------------------------
(Unaudited)
1997 1996
---------------- ----------------
<S> <C> <C>
NET CASH PROVIDED BY OPERATING ACTIVITIES ...................... $ 2,718 $ 8,631
CASH FLOWS FROM INVESTING ACTIVITIES:
Increase in loans receivable, net .......................... (19,545) (29,466)
Loans purchased ............................................ -- (944)
Investment securities held to maturity:
Maturities and redemptions 17,632 24,126
Purchases -- (13,013)
Investment securities available for sale:
Sales and redemptions -- 4,000
Purchases ............................................ (10,497) (116)
Mortgage-backed and mortgage related securities held
to maturity:
Maturities ........................................... 28,147 --
Principal collected .................................. 9,251 5,841
Purchases ............................................ -- (14,900)
Mortgage-backed and mortgage related securities
available for sale:
Principal collected .................................. 1,233 74
Purchases (59,607) --
Net addition to banking premises and equipment ............. (276) (296)
--------- ---------
Net cash used in investing activities (33,662) (24,694)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net increase in deposits ................................... 966 3,288
Increase in escrow accounts ................................ 293 502
Increase in securities sold under repurchase agreements..... 25,639 --
--------- ---------
Net cash provided by financing activities ............ 26,898 3,790
--------- ---------
Net decrease in cash and cash equivalents (4,046) (12,273)
Cash and cash equivalents at beginning of period ........... 32,543 49,272
--------- ---------
Cash and cash equivalents at end of period ................. $ 28,497 $ 36,999
========= =========
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid during the year for:
Interest ............................................... $ 7,596 $ 6,702
Income taxes ......................................... 1,584 2,118
</TABLE>
See accompanying notes to unaudited consolidated financial statements.
5
<PAGE> 6
RICHMOND COUNTY SAVINGS BANK
NOTES TO UNAUDITED FINANCIAL STATEMENTS
1. General
-------
Richmond County Financial Corp. is a newly formed holding company formed
for the purpose of acquiring all of the common stock of Richmond County Savings
Bank concurrent with its conversion from mutual to stock form of organization.
At September 30, 1997, Richmond County Financial Corp. was a shell corporation
with no business activities and no assets. The unaudited consolidated financial
statements included herein reflect all normal recurring adjustments which are,
in the opinion of management, necessary for a fair presentation of the results
for the interim periods presented. The results of operations for the three
months ended September 30, 1997 are not necessarily indicative of the results of
operations that may be expected for the entire fiscal year. Certain information
and note disclosures normally included in financial statements prepared in
accordance with generally accepted accounting principles have been condensed or
omitted pursuant to the rules and regulations of the Securities and Exchange
Commission. These unaudited consolidated financial statements should be read in
conjunction with audited consolidated financial statements and notes thereto,
included in the Registration Statement on Form S-1 for Richmond County Financial
Corp.
6
<PAGE> 7
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 hereunto duly authorized.
RICHMOND COUNTY FINANCIAL CORP.
Dated: January 29, 1998 By: /s/ Michael F. Manzulli
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Michael F. Manzulli
Chairman of the Board and Chief
Executive Officer
Dated: January 29, 1998 By: /s/ Thomas R. Cangemi
--------------------- -------------------------------
Thomas R. Cangemi
Senior Vice President, Chief Financial
Officer and Secretary
7
<TABLE> <S> <C>
<ARTICLE> 9
<LEGEND>
This schedule contains summary financial information extracted from the Form
10-Q and is qualified in its entirety by reference to such financial statements.
</LEGEND>
<CIK> 0001046685
<NAME> Richmond County Financial Corp.
<CURRENCY> U.S. Dollars
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> Jun-30-1998
<PERIOD-END> Sep-30-1997
<EXCHANGE-RATE> 1
<CASH> 0<F1>
<INT-BEARING-DEPOSITS> 0<F1>
<FED-FUNDS-SOLD> 0<F1>
<TRADING-ASSETS> 0<F1>
<INVESTMENTS-HELD-FOR-SALE> 0<F1>
<INVESTMENTS-CARRYING> 0<F1>
<INVESTMENTS-MARKET> 0<F1>
<LOANS> 0<F1>
<ALLOWANCE> 0<F1>
<TOTAL-ASSETS> 0<F1>
<DEPOSITS> 0<F1>
<SHORT-TERM> 0<F1>
<LIABILITIES-OTHER> 0<F1>
<LONG-TERM> 0<F1>
0<F1>
0<F1>
<COMMON> 0<F1>
<OTHER-SE> 0<F1>
<TOTAL-LIABILITIES-AND-EQUITY> 0<F1>
<INTEREST-LOAN> 0<F1>
<INTEREST-INVEST> 0<F1>
<INTEREST-OTHER> 0<F1>
<INTEREST-TOTAL> 0<F1>
<INTEREST-DEPOSIT> 0<F1>
<INTEREST-EXPENSE> 0<F1>
<INTEREST-INCOME-NET> 0<F1>
<LOAN-LOSSES> 0<F1>
<SECURITIES-GAINS> 0<F1>
<EXPENSE-OTHER> 0<F1>
<INCOME-PRETAX> 0<F1>
<INCOME-PRE-EXTRAORDINARY> 0<F1>
<EXTRAORDINARY> 0<F1>
<CHANGES> 0<F1>
<NET-INCOME> 0<F1>
<EPS-PRIMARY> 0<F1>
<EPS-DILUTED> 0<F1>
<YIELD-ACTUAL> 0<F1>
<LOANS-NON> 0<F1>
<LOANS-PAST> 0<F1>
<LOANS-TROUBLED> 0<F1>
<LOANS-PROBLEM> 0<F1>
<ALLOWANCE-OPEN> 0<F1>
<CHARGE-OFFS> 0<F1>
<RECOVERIES> 0<F1>
<ALLOWANCE-CLOSE> 0<F1>
<ALLOWANCE-DOMESTIC> 0<F1>
<ALLOWANCE-FOREIGN> 0<F1>
<ALLOWANCE-UNALLOCATED> 0<F1>
<FN>
<F1>Richmond County Financial Corp. is a newly formed savings and loan holding
company formed for the purpose of acquiring all of the common stock of Richmond
County Savings Bank, Staten Island, New York, concurrent with the Bank's
conversion from mutual to stock form of organization. At September 30, 1997
Richmond County Financial Corp. was a shell corporation with no business
activities or operations and no assets.
</FN>
</TABLE>
