<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 December 31, 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 (I.R.S. Employer
incorporation 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
----- -----
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 February 10, 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 (Section 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)
DECEMBER 31, JUNE 30,
1997 1997
--------------- ------------
(UNAUDITED)
ASSETS
<S> <C> <C>
Cash and due from banks ........................... $ 28,694 $ 26,543
Federal funds sold ................................ 7,000 6,000
Securities held to maturity:
Investment securities .......................... 155,630 205,201
Mortgage-backed and mortgage related securities. 129,482 185,122
Securities available for sale:
Investment securities........................... 56,347 19,706
Mortgage-backed and mortgage related securities. 150,077 27,398
Loans receivable:
Real estate loans .............................. 510,292 471,601
Other loans .................................... 35,774 30,127
Less allowance for loan losses.................. (6,138) (5,470)
----------- ----------
Total loans receivable, net ....................... 539,928 496,258
Banking premises and equipment, net ............... 12,151 12,058
Accrued interest receivable ....................... 8,260 8,268
Other real estate owned ........................... 926 662
Net deferred tax assets ........................... 1,768 2,942
Other assets ...................................... 5,777 3,212
---------- ---------
TOTAL ASSETS ...................................... $1,096,040 $ 993,370
========== =========
LIABILITIES AND NET WORTH
Demand deposits ................................... $ 102,481 $ 92,959
Savings, NOW and Money market accounts ............ 491,659 493,506
Certificates of deposit ........................... 318,079 298,066
---------- ---------
Total deposits ................................. 912,219 884,531
Securities sold under agreements to repurchase..... 55,700 --
Borrowings from the Federal Home Loan Bank......... 14,000 --
Accrued expenses and other liabilities............. 6,673 7,974
---------- ---------
Total liabilities............................... 988,592 892,505
Net worth ...................................... 107,448 100,865
---------- ---------
TOTAL LIABILITIES AND NET WORTH ................... $1,096,040 $ 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 SIX MONTHS ENDED
DECEMBER 31, DECEMBER 31,
------------------- -------------------
(Unaudited)
1997 1996 1997 1996
-------- -------- -------- ---------
<S> <C> <C> <C> <C>
INTEREST INCOME:
Loans ............................................. $ 10,789 $ 9,425 $ 21,107 $ 18,433
Debt and equity securities ........................ 2,713 4,509 5,865 9,448
Mortgage-backed and mortgage related securities.... 4,692 1,934 8,540 3,329
Federal funds sold ................................ 139 192 234 487
Other ............................................. 578 80 919 202
-------- ------- -------- --------
Total interest income .......................... 18,911 16,140 36,665 31,899
-------- ------- -------- --------
INTEREST EXPENSE:
Deposits .......................................... 7,642 6,828 15,161 13,525
Borrowed funds .................................... 712 -- 789 --
------- ------- -------- --------
Total interest expense ......................... 8,354 6,828 15,950 13,525
------- ------- -------- --------
NET INTEREST INCOME.................................. 10,557 9,312 20,715 18,374
Provision for loan losses ........................... 450 270 900 540
------- ------- -------- --------
Net interest income after provision for loan losses.. 10,107 9,042 19,815 17,834
------- ------- -------- --------
NON-INTEREST INCOME:
Fee income ........................................ 825 609 1,647 1,337
Net gain (loss) on sale of securities and loans.... 78 50 73 (69)
Other.............................................. -- 25 -- 25
------- ------- -------- --------
Total non-interest income ...................... 903 684 1,720 1,293
------- ------- -------- --------
NON-INTEREST EXPENSE:
Salaries and employee benefits .................... 2,817 2,518 5,277 4,984
Occupancy costs ................................... 802 732 1,593 1,487
Computer service fees ............................. 445 511 1,084 1,050
Advertising ....................................... 439 207 592 323
Amortization of deposit premium ................... 78 78 157 157
FDIC insurance premiums ........................... 39 551 77 607
Other ............................................. 932 448 1,727 1,203
------- ------- -------- --------
Total non-interest expense ..................... 5,552 5,045 10,507 9,811
------- ------- -------- --------
Income before income taxes........................... 5,458 4,681 11,028 9,316
Provision for income taxes .......................... 2,647 2,200 5,364 4,378
------- ------- -------- --------
NET INCOME........................................... $ 2,811 $ 2,481 $ 5,664 $ 4,938
======= ======= ======== ========
</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)
SIX MONTHS ENDED
DECEMBER 31,
--------------------------------
(UNAUDITED)
1997 1996
--------------- --------------
<S> <C> <C>
NET CASH PROVIDED BY OPERATING ACTIVITIES.............. $ 3,996 $ 15,703
CASH FLOWS FROM INVESTING ACTIVITIES:
Increase in loans receivable, net .................... (30,976) (52,829)
Loans purchased ...................................... (12,880) (910)
Investment securities held to maturity:
Maturities and redemptions........................ 49,377 59,435
Purchases......................................... -- (17,611)
Investment securities available for sale:
Sales and redemptions............................. 1,196 15,954
Purchases ........................................ (26,838) (175)
Mortgage-backed and mortgage related securities held
to maturity:
Maturities ........................................ 33,370 2,166
Principal collected ............................... 22,337 11,030
Purchases ......................................... -- (64,113)
Mortgage-backed and mortgage related securities
available for sale:
Calls and redemptions.............................. 2,797 --
Principal collected ............................... 5,877 121
Purchases........................... .............. (140,466) (4,893)
Net addition to banking premises and equipment........ (623) (972)
------------ -----------
Net cash used in investing activities.............. (96,829) (52,797)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net increase in deposits ............................. 26,335 20,464
Net (decrease) increase in escrow accounts............ (51) 191
Increase in securities sold under repurchase agreements 55,700 --
Increase in borrowings from the Federal Home
Loan Bank........................................... 14,000 --
----------- ----------
Net cash provided by financing activities.......... 95,984 20,655
----------- ----------
Net increase (decrease) in cash and cash equivalents.. 3,151 (16,439)
Cash and cash equivalents at beginning of period...... 32,543 49,272
----------- ----------
Cash and cash equivalents at end of period............ $ 35,694 $ 32,833
=========== ==========
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid during the year for:
Interest .......................................... $ 15,950 $ 13,527
Income taxes ...................................... 4,294 4,048
</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 December 31, 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 six months
ended December 31, 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: February 10, 1998 By: /s/ Michael F. Manzulli
------------------- --------------------------------------
Michael F. Manzulli
Chairman of the Board and Chief
Executive Officer
Dated: February 10, 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> 6-MOS
<FISCAL-YEAR-END> Jun-30-1998
<PERIOD-END> Dec-31-1997
<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 December 31, 1997
Richmond County Financial Corp. was a shell corporation with no business
activities or operations and no assets.
</FN>
</TABLE>
