SECURITIES AND EXCHANGE COMMISSION
WASHINGTON D.C. 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 15, 1998
NORTH FORK BANCORPORATION, INC.
(Exact name of Registrant as specified in its charter)
Delaware 1-10458 36-3154608
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
275 Broad Hollow Road
Melville, New York 11747
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (516) 844-1004
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ITEM 5. OTHER EVENTS
North Fork Bancorporation, Inc. issued a press release
announcing its earnings for the quarter and year ended December
31, 1997. The press release issued by the Registrant described
herein is attached hereto as Exhibit 99.1 and is hereby
incorporated herein by reference in its entirety.
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION
AND EXHIBITS
(a) Financial Statements of the Business Acquired.
Not Applicable
(b) Pro Forma Financial Information
Not Applicable
(c) Exhibits
99.1 Press Release dated January 15, 1998
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SIGNATURE
Pursuant to the requirements of the Securities and Exchange Act
of 1934, the Registrant has duly caused this report to be signed
on its behalf by the undersigned hereunto duly authorized.
Date: January 16, 1998
NORTH FORK BANCORPORATION, INC.
By: /s/ Daniel M. Healy
Daniel M. Healy
Executive Vice President and
Chief Financial Officer
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Exhibit 99.1
NORTH FORK BANCORP
275 Broad Hollow Rd., Melville, NY 11747 (516) 844-1004
FAX (516) 694-1536
FOR IMMEDIATE RELEASE Contact: Daniel M. Healy
Executive Vice President &
Chief Financial Officer
NORTH FORK BANCORP ANNOUNCES RECORD
NET INCOME FOR FULL-YEAR AND FOURTH QUARTER 1997
Melville, N.Y. - January 15, 1998 - North Fork Bancorporation,
Inc. (NYSE: NFB) reported today substantial achievements in all
key measures of operating performance for 1997. The Company
recorded net income of $119.3 million or diluted earnings per
share of $1.80 for the year ended December 31, 1997, as compared
with net income of $62.4 million, or $.97 per share for 1996.
Net income for 1996 included non-recurring charges for merger
and restructuring costs associated with the acquisition of North
Side Savings Bank and the SAIF recapitalization. Excluding
those charges, 1996 earnings would have been $85.6 million or
$1.33 per share. Fourth quarter earnings and diluted earnings
per share for 1997 were $34.0 million or $.51 per share compared
to $21.6 million or $.34 per share in 1996 (exclusive of the
non-recurring charges). The Company's return on average equity
and assets for 1997 approximated 24% and 1.9%, respectively,
compared to 14% and 1.1% for 1996. In the final quarter record
returns of approximately 25% on average equity and 2% on average
assets were achieved.
Net interest income was $70.9 million and $278.4 million for
the three month period and year ended December 31, 1997,
respectively. Such amounts were $61.5 million and $230.9
million for the comparable periods in the preceding year. The
net interest margin was 4.57% in the three month period ended
December 31, 1997 and 4.69% for the 1997 full year. Demand
deposits, a principal source of funding, exceeded $900 million,
a 23% increase over year end 1996.
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Loans, net of unearned income and fees, measured $3.7 billion
at December 31, 1997, a 17% increase over year end 1996. Loan
growth in the final quarter of 1997 kept pace with the Company's
experience for the full year and includes approximately $114
million in loans from the acquisition of Branford Savings Bank.
Branford, which was acquired in December 1997, had no effect on
operating results for the year. The allowance for loan losses
of approximately $55.7 million represents 362% of non-performing
loans and 1.51% of net loans outstanding at year end.
Non interest income, exclusive of security gains, rose by 27%
in the current quarter and 21% for the full year. The growth in
this important segment reflects, in part, the success of
offering new and diverse products to the customer base from
North Side Savings Bank. This trend is expected to accelerate
in the coming year. "We substantially exceeded all of our
expectations from this acquisition and have developed good
momentum from these new customers as we move into 1998," stated
John Adam Kanas, Chairman, President and Chief Executive Officer.
The Company's core efficiency ratio for the year declined to
38.14% in 1997 from 42.53% for 1996 and represents another
measure of the successful integration of North Side.
The Company's pending acquisition of New York Bancorp, the
parent company of Home Federal Savings Bank, is expected to
close during the first quarter of this year. Concurrent
shareholder meetings seeking approvals for the merger are
scheduled for January 30, 1998. All regulatory applications
have been filed. Home, with $3.3 billion in assets, operates
from branch locations throughout the New York Metropolitan area
and introduces North Fork to new markets including Kings County,
where Home has a sizable presence. The acquisition will be
treated as a pooling-of-interests for financial reporting
purposes. "We expect to realize tangible results immediately
following the acquisition," stated Mr. Kanas. "Many of the
tasks necessary to accomplish these goals have already been
completed," he added.
In December 1997, the Company successfully completed the sale
of $100 million, 8% Capital Securities, that qualifies as Tier I
capital, through a public offering.
North Fork Bancorporation, Inc., with total assets of $6.8
billion, deposits of $4.6 billion and shareholders' equity of
$601.8 million is the holding company of North Fork Bank and
Branford Savings Bank, which operate 85 branches in the states
of New York and Connecticut. On a pro forma basis with New York
Bancorp, the Company will have 110 branches and approximately
$10.1 billion in total assets. With approximately 100 million
common shares outstanding, it is anticipated that the Company's
market capitalization will exceed $3 billion.
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North Fork Bancorporation, Inc.
(NYSE: NFB)
(In thousands, except ratios and per share amounts)
<TABLE>
Three Months Ended Twelve Months Ended
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INCOME STATEMENT HIGHLIGHTS 12/31/97 12/31/96 12/31/97 12/31/96
Interest Income $125,062 $105,215 $484,521 $405,307
Interest Expense 54,193 43,684 206,170 174,361
Net Interest Income 70,869 61,531 278,351 230,946
Provision for Loan Losses 1,500 1,700 6,000 6,800
Net Interest Income after
Provision for Loan Losses 69,369 59,831 272,351 224,146
Non-Interest Income:
Fees & Service Charges on Deposit Accounts 5,026 4,331 18,943 16,303
Broker Commissions & Trust Fees 2,102 1,392 8,269 5,638
Mortgage Banking Operations 467 527 1,883 2,202
Other Operating Income 1,770 1,118 6,302 5,102
Net Securities Gains/(Losses) 3,954 (1,090) 6,227 1,878
Total Non-Interest Income 13,319 6,278 41,624 31,123
Non-Interest Expense:
Operating Expenses 29,511 28,334 115,204 105,917
Amortization of Intangible Assets 1,810 1,981 7,292 6,364
Other Real Estate 78 (122) 240 753
Merger Related Restructure Charge - 21,613 - 21,613
SAIF Recapitalization Charge - - - 8,350
Total Non-Interest Expense 31,399 51,806 122,736 142,997
Income Before Income Taxes 51,289 14,303 191,239 112,272
Provision for Income Taxes 17,258 10,214 71,929 49,830
Net Income $34,031 $4,089 $119,310 $62,442
Earnings Per Share - Basic $0.51 $0.06 $1.81 $0.98
Earnings Per Share - Diluted $0.51 $0.06 $1.80 $0.97
Cash Dividends per Share (2) $0.15 $0.125 $0.575 $0.425
Average Shares Outstanding - Basic 66,345 63,106 65,914 63,640
Average Shares Outstanding - Diluted 66,960 63,872 66,395 64,277
Return on Average Total Assets 2.03% 0.29% 1.86% 1.13%
Return on Average Stockholders' Equity 24.54% 3.62% 23.65% 14.48%
Yield on Interest Earning Assets (3) 7.98% 7.93% 8.07% 7.84%
Cost of Funds 3.68% 3.95% 3.86% 3.99%
Net Interest Margin (3) 4.57% 4.67% 4.69% 4.50%
Core Efficiency Ratio (4) 38.09% 43.30% 38.14% 42.53%
(1) On May 15, 1997, the Company completed its two-for-one stock
split to shareholders' of record on April 25, 1997.
Accordingly, all per share amounts have been
adjusted to reflect the issuance.
(2) Cash dividends do not reflect dividends declared by North
Side in 1996 prior to the merger.
(3) Presented on a taxable equivalent basis.
(4) The core efficiency ratio is defined as the ratio of
non-interest expense, net of other real estate related costs and
other non-recurring charges, to net interest income on
taxable equivalent basis and other non-interest income net of
securities gains.
</TABLE>
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North Fork Bancorporation, Inc.
(NYSE: NFB)
(In thousands, except ratios and per share amounts)
<TABLE>
<S> <C> <C> <C>
December 31, September 30, December 31,
BALANCE SHEET HIGHLIGHTS 1997 1997 1996
Loans, net of unearned income and fees $3,700,020 $3,509,722 $3,171,525
Allowance for Loan Losses 55,698 54,611 53,894
Securities Available-for-Sale 1,660,714 1,633,737 857,391
Securities Held-to-Maturity 1,118,468 1,166,329 1,300,115
Intangible Assets 96,398 76,692 82,073
Total Assets 6,829,432 6,615,620 5,750,527
Deposits - Demand 905,650 836,020 734,907
Deposits - Other 3,731,541 3,622,629 3,734,603
Federal Funds Purchased & Securities Sold
Under Agreements to Repurchase 1,263,705 1,331,025 621,789
Other Borrowings 36,000 85,000 35,000
Company-Obligated Mandatorily Redeemable
Capital Securities of Subsidiary Trusts 199,264 99,646 99,637
Stockholders' Equity 601,826 538,281 457,531
Book Value Per Share $8.90 $8.16 $7.05
SELECTED FINANCIAL HIGHLIGHTS
CAPITAL:
Risk Based Capital
Tier 1 16.67% 14.34% 15.12%
Total 18.61% 15.59% 16.38%
Leverage Ratio 10.08% 8.38% 8.61%
Actual Shares Outstanding 67,616 65,987 64,892
ASSET QUALITY:
Non-Performing Loans 15,405 12,299 20,341
Other Real Estate 4,580 5,499 1,898
Total Non-Performing Assets $19,985 $17,798 $22,239
Restructured Accruing Loans $9,552 $12,204 $13,734
Allowance for loan losses to
non performing loans 362% 444% 265%
Allowance for loan losses to total
loans, net of unearned income and fees 1.51% 1.56% 1.70%
Non-Performing Loans to total loans, net
of unearned income and fees 0.42% 0.35% 0.64%
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