<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934.
For the fiscal year ended September 30, 1998
Adirondack Financial Services Bancorp, Inc.
(Exact name of registrant as specified in its charter)
Delaware 333-43697 14-1801465
(State or other jurisdiction of (Commission File No.) (IRS Employer
incorporation or organization) Identification No.)
52 North Main Street, Gloversville, NY 12078
(Address of principal executive offices)
(518) 725-6331
(Registrants telephone number, including area code)
(Former name, former address and former fiscal year,
if changed since last report.)
<PAGE>
Item 1. Changes in Conrol of Registrant.
None
Item 2. Acquisition or Disposition of Assets.
None
Item 3. Bankruptcy or Receivership.
None
Item 4. Changes in registrant's Certifying Accountant.
None
Item 5. Other Events.
On October 30, 1998, the Registrant issued the attached press release.
Item 6. Resignations of Registrant's Directors.
None
Item 7. Financial Statements and Exhibits.
Exhibit 1 - Press Release
Item 8. Change in Fiscal Year.
None
Item 9. Sales of Equity Securities Pursuant to Regulation S.
None
<PAGE>
SIGNATURES
In accordance with the requirements of the Exchange Act, the registrant caused
this report to be signed on its behalf by the undersigned, thereunto duly
authorized.
Adirondack Financial Services Bancorp, Inc.
- -------------------------------------------
(Registrant)
Dated: October 30, 1998 /s/ Lewis E. Kolar
--------------------------
Lewis E. Kolar
President and CEO
Dated: October 30, 1998 /s/ Menzo D. Case
--------------------------
Menzo D. Case
Executive VP and CFO
<PAGE>
Adirondack Financial Services Bancorp, Inc,
Exhibit 1. Press Release
Adirondack Financial Services Bancorp, Inc.
52 North Main Street
Gloversville, NY 12078
NASDAQ Symbol: AFSB
Contact: Menzo D. Case
EVP & CFO
(518) 725-6331
For Immediate Release
Friday, October 30, 1998
Adirondack Financial Announces Fiscal Year Earnings
Gloversville, NY -- Adirondack Financial Services Bancorp, Inc. (Nasdaq OTC:
AFSB) reported that consolidated unaudited net income for the year ended
September 30, 1998 was $234,000. For the year ended September 30, 1997
Gloversville Federal Savings and Loan Association had a net loss of $583,000.
Earnings per share from the conversion date to September 31, 1998 was $.19
based on weighted average shares outstanding of 608,559 and estimated earnings
of $114,000. Per share earnings data for any period prior to April 6, 1998 are
not applicable as the Company converted to stock form on that date.
Total assets were $68.2 million at September 30, 1998 as compared to $61.0
million at September 30, 1997. The increase was primarily attributable to net
proceeds of $5.5 million received from Adirondack Financial's subscription
offering, a $677,000 increase in deposits and a $700,000 increase in
borrowings.
Gross loans increased $523,000 and were $51.8 million at September 30, 1998.
Multi-family and commercial real estate loans and commercial business loans
Increased $1.9 million from $9.4 million at September 30, 1997 to $11.2 million
at September 30, 1998. Residential one-to-four family loans declined from $36.9
million at September 30, 1997 by $1.2 million to $35.7 million at September 30,
1998. Other loan balances did not change significantly during fiscal year 1998.
Nonperforming loans decreased $2.0 million from $3.8 million at September 30,
1997 to $1.8 million at September 30, 1998. The ratio of nonperforming loans to
gross loans decreased to 3.52% at September 30, 1998 from 7.39% at September
30, 1997.
Deposits increased $677,000 from $56.1 million at September 30, 1997 to $56.8
million at September 30, 1998. Demand and NOW account balances increased from
$5.1 million at September 30, 1997 to $5.7 million at September 30, 1998.
Savings and money market accounts were $23.9 million at September 30, 1998 as
compared to $23.0 million September 30, 1997. Time deposits declined $824,000
from $28.0 million at September 30, 1997 to $27.2 million at September 30,
1998. Borrowings increased from $1.3 million at September 30, 1997 to $2.0
million at September 30, 1998. The time deposit decline was due to the maturity
of higher costing time deposits that were not maintained by the Association as
borrowings were a less expensive option available to meet short-term funding
needs.
Net interest income was $2.5 million for the fiscal years ended September 30,
1998 and 1997.
The provision for loan losses was $120,000 and $792,000 for the years ended
September 30, 1998 and 1997, respectively. The allowance for loan losses was
$1.5 million or 81.91% of nonperforming loans at September 30, 1998, compared
to 42.53% at September 30, 1997.
<PAGE>
Non-interest expense decreased $106,000 and was $2.2 million for the year ended
September 30, 1998 as compared to $2.3 million for the year ended September 30,
1997. The decrease was attributable to cost saving measures taken in general
operations, and a reduction in other real estate expenses and other expenses,
offset partially by higher employee benefit costs.
Adirondack Financial Services Bancorp, Inc., a newly formed bank holding
company, began trading its stock upon the completion of its initial stock
offering on April 6, 1998. Simultaneously, Adirondack Financial became the
owner of all of the outstanding shares of Gloversville Federal Savings and Loan
Association. The Company has two retail offices located in Gloversville, NY and
Saratoga Springs, NY.
END
<PAGE>
Adirondack Financial Services Bancorp, Inc.
Selected Consolidated Financial Information
<TABLE>
<CAPTION>
At September 30, 1998 At September 30, 1997
-----------------------------------------------
(In Thousands)
<S> <C> <C>
Total assets $ 68,241 $61,022
Cash and cash equivalents 5,145 1,922
Net loans receivable 50,201 49,526
Mortgage-backed securities available for sale 3,959 3,589
Other securities available for sale 6,813 3,428
------- -------
Total securities available for sale 10,772 7,017
------- -------
Deposits 56,794 56,117
Borrowings 2,000 1,300
Total equity 9,155 3,280
For the Years Ended September 30,
-----------------------------------------------
1998 1997
------- -------
(In Thousands)
Interest income $ 5,006 $ 4,905
Interest expense 2,525 2,447
Net interest income 2,481 2,458
Provision for loan losses 120 792
Net interest income after provision for loan losses 2,361 1,666
Total non-interest income 175 155
Non-interest expense 2,213 2,319
Income (loss) before income tax expense 323 (498)
Income tax expense 89 85
Net income (loss) 234 (583)
Earnings per weighted average common shares outstanding(l) $ 0.19 n/a
Weighted average common shares outstanding (2) 608,559 n/a
</TABLE>
Selected Financial Ratios and Other Data
<TABLE>
<CAPTION>
For the Years Ended
9/30/98 9/30/97
------- -------
<S> <C> <C>
Performance Ratios:
Return (Loss) on average assets 0.36% (0.94%)
Return (Loss) on average equity 5.13% (16.30%)
Average interest rate spread during period 3.86% 3.96%
Net interest margin 4.02% 4.11%
Ratio of operating expenses to average total assets (3) 3.39% 3.63%
Efficiency ratio (4) 82.20% 85.94%
Ratio of average interest-earning assets
to average interest-bearing liabilities 103.87% 103.76%
Average equity to average assets 7.08% 5.78%
(1) Based upon estimated earnings from the conversion date of April 6, 1998 to September 30, 1998.
(2) Weighted average common shares outstanding from the conversion date of April 6, 1998 to
September 30, 1998.
(3) Operating expenses exclude OREO expenses of $30,000 and $73,000 for periods ended
September 30, 1998 and 1997.
(4) The efficiency ratio represents operating expenses (as defined above) divided by the sum of
net interest income and other income.
</TABLE>
