SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K/A
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
----------------
DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED) MARCH 3, 2000
----------------
NORTH FORK BANCORPORATION, INC.
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(EXACT NAME OF REGISTRANT AS SPECIFIED IN CHARTER)
DELAWARE 1-10458 36-3154608
- -------------------------- ------------------------ -----------------------
(STATE OR OTHER JURISDICTION (COMMISSION FILE NUMBER) (I.R.S. EMPLOYER
OF INCORPORATION) IDENTIFICATION NO.)
275 BROAD HOLLOW ROAD MELVILLE, NEW YORK 11747
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(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES) (ZIP CODE)
(REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE) (631) 844-1004
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This Current Report on Form 8-K/A amends the Current Report on Form
8-K of North Fork Bancorporation, Inc. (the "Registrant") filed with the
Securities and Exchange Commission on March 3, 2000.
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS
(c) Exhibits
99.1 Unaudited Financial Statements of Reliance Bancorp, Inc. as
of December 31, 1999.
SIGNATURE
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.
NORTH FORK
BANCORPORATION, INC.
By: /s/ Daniel M. Healy
----------------------------------
Name: Daniel M. Healy
Title: Executive Vice President
and Chief Financial Officer
Date: March 28, 2000
EXHIBIT INDEX
Exhibit
Number Description
- ------- ------------
99.1 Unaudited Financial Statements of Reliance Bancorp, Inc. as of
December 31, 1999.
EXHIBIT 99.1
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<CAPTION>
RELIANCE BANCORP, INC. and SUBSIDIARY
Consolidated Statements of Condition
(Unaudited)
(Dollars in thousands, except share and per share data)
December 31, June 30,
1999 1999
---- ----
Assets
<S> <C> <C>
Cash and due from banks........................................................... $ 40,904 $ 33,255
Money market investments.......................................................... 31,499 --
Debt and equity securities available-for-sale..................................... 125,707 122,168
Debt and equity securities held-to-maturity (with estimated
market values of $49,578 and $28,840, respectively)............................ 49,980 28,835
Mortgage-backed securities available-for-sale..................................... 839,335 935,038
Mortgage-backed securities held-to-maturity (with estimated
market values of $250,138 and $252,233, respectively).......................... 257,685 255,917
Loans receivable:
Mortgage loans............................................................... 814,948 810,894
Commercial loans............................................................. 50,727 44,949
Consumer and other loans..................................................... 133,334 127,350
Less allowance for loan losses............................................. (9,045) (9,120)
--------- ---------
Loans receivable, net................................................ 989,964 974,073
Accrued interest receivable, net.................................................. 13,032 13,095
Office properties and equipment, net.............................................. 17,417 16,368
Prepaid expenses and other assets................................................. 59,113 16,960
Mortgage servicing rights......................................................... 1,290 1,514
Excess of cost over fair value of net assets acquired............................. 52,092 54,373
Real estate owned, net............................................................ 95 177
---------- --------
Total assets......................................................... $2,478,113 $ 2,451,773
========= =========
Liabilities and Stockholders' Equity
Deposits.......................................................................... $1,540,470 $ 1,549,419
Borrowed Funds.................................................................... 735,978 702,434
Advance payments by borrowers for taxes and insurance............................. 6,963 6,399
Accrued expenses and other liabilities............................................ 18,326 21,854
-------- --------
Total liabilities.................................................... 2,301,737 2,280,106
--------- ---------
Commitments Stockholders' Equity
Preferred Stock, $.01 par value, 4,000,000 shares
authorized; none issued......................................................... -- --
Common stock, $.01 par value, 20,000,000 shares
authorized; 10,750,820 shares issued; 8,882,411 and 8,586,210
outstanding, respectively..................................................... 108 108
Additional paid-in capital........................................................ 119,494 121,037
Retained earnings, substantially restricted....................................... 123,195 115,976
Accumulated other comprehensive income:
Net unrealized depreciation on securities
available-for-sale, net of taxes.............................................. (18,741) (10,546)
Less:
Unallocated common stock held by ESOP............................................. (3,312) (3,726)
Unearned common stock held by RRP................................................. -- (66)
Common stock held by SERP (at cost)............................................... (550) (550)
Treasury stock, at cost (1,868,409 and 2,164,610 shares, respectively)............ (43,818) (50,566)
-------- --------
Total stockholders' equity................................................... 176,376 171,667
------- -------
Total liabilities and stockholders' equity............................ $ 2,478,113 $ 2,451,773
========== =========
</TABLE>
<TABLE>
<CAPTION>
RELIANCE BANCORP, INC. and SUBSIDIARY
Consolidated Statements of Income
(Unaudited)
(In thousands, except per share data)
Three Months Ended Six Months Ended
December 31, December 31,
------------ ------------
1999 1998 1999 1998
---- ---- ---- ----
Interest income:
<S> <C> <C> <C> <C>
First mortgage loans......................................... $ 15,696 $ 15,880 $ 31,510 $ 31,598
Commercial loans............................................. 1,239 1,298 2,362 2,690
Consumer and other loans..................................... 2,744 2,746 5,388 5,671
Mortgage-backed securities................................... 18,376 19,840 37,179 39,564
Money market investments..................................... 236 58 271 221
Debt and equity securities................................... 3,150 2,552 6,053 5,498
----- ------ ----- ------
Total interest income..................................... 41,441 42,374 82,763 85,242
------ ------ ------ ------
Interest expense:
Deposits..................................................... 13,838 15,987 27,718 32,622
Borrowed funds............................................... 10,295 8,787 20,288 17,817
------ ------ ------ ------
Total interest expense.................................... 24,133 24,774 48,006 50,439
------ ------ ------ ------
Net interest income before provision for loan losses...... 17,308 17,600 34,757 34,803
Provision for loan losses.................................... -- 350 -- 500
------ ------- ------ ------
Net interest income after provision for loan losses....... 17,308 17,250 34,757 34,303
------ ------ ------ ------
Non-interest income:
Loan fees and service charges................................ 348 265 791 425
Other operating income....................................... 1,341 1,061 2,613 2,074
Income from Money Centers.................................... 759 670 1,482 1,302
Net (loss) gain on securities................................ -- (59) -- 7
----- ------- ----- -----
Total non-interest income................................. 2,448 1,937 4,886 3,808
----- ----- ----- -----
Non-interest expense:
Compensation and benefits.................................... 5,330 5,011 10,597 10,297
Occupancy and equipment...................................... 1,703 1,643 3,400 3,418
Federal deposit insurance premiums........................... 230 225 460 453
Advertising.................................................. 101 225 318 493
Other operating expenses..................................... 1,869 1,686 3,737 3,256
----- ----- ----- ------
Total general and administrative expenses................. 9,233 8,790 18,512 17,917
Real estate operations, net.................................. 13 (14) 68 73
Amortization of excess of cost over fair value
of net assets acquired................................ 1,141 1,141 2,282 2,281
----- ----- ----- ------
Total non-interest expense................................... 10,387 9,917 20,862 20,271
------ ----- ------ ------
Income before income taxes...................................... 9,369 9,270 18,781 17,840
Income tax expense ............................................. 4,016 4,051 8,046 7,850
------ ----- ----- ------
Net income...................................................... $5,353 $ 5,219 $10,735 $ 9,990
===== ===== ====== ======
Net income per common share:
Basic.......................................... $0.65 $ 0.63 $1.30 $ 1.16
==== ==== ==== ====
Diluted........................................ $0.62 $ 0.60 $1.25 $ 1.10
==== ==== ==== ====
</TABLE>
<TABLE>
<CAPTION>
RELIANCE BANCORP, INC. and SUBSIDIARY
Consolidated Statements of Cash Flows
(Unaudited)
(Dollars in thousands)
Six months ended
December 31,
------------
Cash flows from operating activities: 1999 1998
------- ------
<S> <C> <C>
Net income............................................................................. $ 10,735 $ 9,990
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Provision for loan losses.............................................................. -- 500
Provision for losses on real estate owned.............................................. 29 35
Amortization of (discounts) premiums, net.............................................. (25) 1,430
Amortization relating to allocation and earned portion of stock plans.................. 1,517 1,669
Amortization of excess of cost over fair value of net assets acquired.................. 2,282 2,281
Amortization of mortgage servicing rights.............................................. 224 414
Depreciation and amortization.......................................................... 775 911
Net gain on securities................................................................. -- (7)
Net gain on loans sold................................................................. (8) (62)
Proceeds from loans sold............................................................... 5,955 14,216
Net loss (gain) on sale of real estate owned........................................... 6 (64)
Increase in accrued interest receivable, net........................................... 63 935
(Increase) decrease in prepaid expenses and other assets............................... (35,158) 4,962
(Decrease) Increase in accrued expenses and other liabilities.......................... (3,303) 23,482
------- -------
Net cash (used in) provided by operating activities................................ (16,908) 60,692
-------- ------
Cash flows from investing activities:
(Originated and purchased loans) net of principal repayments........................... (22,154) (7,175)
Purchases of mortgage-backed securities available-for-sale............................. (17,225) (331,826)
Proceeds from sales of mortgage-backed securities available-for-sale................... -- 115,705
Purchases of mortgage-backed securities held-to-maturity............................... (32,350) (85,189)
Principal repayments from mortgage-backed securities................................... 130,340 249,783
Purchases of debt securities available-for-sale........................................ (4,995) (2,000)
Purchases of debt securities held-to-maturity.......................................... (21,145) (1,000)
Proceeds from calls and maturities of debt securities.................................. -- 18,545
Proceeds from sales of debt securities available-for-sale.............................. -- 14,157
Purchases of office properties and equipment........................................... (1,855) (905)
Proceeds from sales of real estate owned............................................... 461 442
------ ------
Net cash provided by (used in) investing activities................................ 31,077 (29,463)
------ -------
Cash flows from financing activities:
(Decrease) Increase in deposits........................................................ (8,751) 18,947
Increase (Decrease) in advance payments by borrowers for taxes and insurance........... 564 (2,553)
Proceeds from FHLB advances............................................................ 498,335 424,381
Repayment of FHLB advances........................................................... (422,956) (245,388)
Proceeds from reverse repurchase agreements............................................ 433,880 285,218
Repayment of reverse repurchase agreements............................................. (490,815) (496,101)
Proceeds from other borrowings......................................................... 15,100 --
Purchases of treasury stock............................................................ (828) (23,809)
Net proceeds from issuance of common stock upon exercise of stock options.............. 3,953 460
Dividends paid......................................................................... (3,503) (3,168)
------- -------
Net cash provided by (used in) financing activities................................ 24,979 (42,013)
------ --------
Net increase (decrease) in cash and cash equivalents................................... 39,148 (10,784)
Cash and cash equivalents at beginning of period....................................... 33,255 47,096
------ -------
Cash and cash equivalents at end of period............................................. $ 72,403 $ 36,312
====== ======
See accompanying notes to unaudited consolidated financial statements.
</TABLE>
<TABLE>
<CAPTION>
RELIANCE BANCORP, INC. and SUBSIDIARY
Consolidated Statements of Cash Flows, Continued
(Unaudited)
(Dollars in thousands)
Six months ended
December 31,
------------
1999 1998
---- ----
<S> <C> <C>
Supplemental disclosures of cash flow information
Cash paid during the six months ended for:
Interest............................................................................... $ 45,912 $ 50,166
====== ======
Income taxes........................................................................... $ 13,050 $ --
====== ===
Non-cash investing activities:
Transfers from loans to real estate owned.............................................. $ 415 $ 337
=== ===
See accompanying notes to unaudited consolidated financial statements.
</TABLE>
RELIANCE BANCORP, INC. and SUBSIDIARY
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
1. BASIS OF PRESENTATION
The accompanying unaudited consolidated financial statements
include the accounts of Reliance Bancorp, Inc. (the "Company"),
its direct wholly-owned subsidiary, Reliance Federal Savings Bank
(the "Bank") and the subsidiaries of the Bank.
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, 1999 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 Company's 1999 Annual Report on Form 10-K.
2. ACQUISITION OF RELIANCE BANCORP, INC. BY NORTH FORK
BANCORPORATION, INC.
On August 30, 1999, the Company announced that it had signed a
definitive Agreement and Plan of Merger, dated as of August 30,
1999, with North Fork Bancorporation, Inc. NFB is the bank holding
company parent of North Fork Bank, a New York State chartered
stock commercial bank. The Merger Agreement provides, among other
things, that Reliance will merge with and into NFB, with NFB being
the surviving corporation.
Pursuant to the Merger Agreement, each share of Reliance common
stock, par value $0.01 per share, issued and outstanding
immediately prior to the Effective Time will be converted into and
become the right to receive 2.0 shares of NFB common stock, par
value $2.50 per share.
The Merger will be structured as a tax-free reorganization and
will be accounted under the purchase method of accounting.
Consummation of the Merger is subject to the satisfaction of
certain customary conditions, including approval of the Merger
Agreement by the stockholders of Reliance and approval of the
appropriate regulatory agencies. Following consummation of the
Merger, the Bank will be merged with and into North Fork Bank and
Trust Company.
Reliance has the right to terminate the Merger Agreement if the
closing price of NFB's shares decline beyond a specified price and
index, unless NFB elects to increase the Merger Consideration to
be received by Reliance's stockholders as set forth in the Merger
Agreement.
The Merger Agreement also provides that options to purchase shares
of Reliance Common Stock under Reliance's stock option plans that
are outstanding at the Effective Time shall be converted into
options to purchase shares of NFB Common Stock in accordance with
the procedure set forth in the Merger Agreement. In connection
with the Merger Agreement, Reliance granted to NFB a stock option
pursuant to a Stock Option Agreement, dated as of August 30, 1999,
which, under certain defined circumstances, would enable NFB to
purchase up to 19.9% of Reliance's issued and outstanding shares
of common stock. The Stock Option Agreement provides that the
total profit receivable thereunder may not exceed $17.4 million
plus reasonable out-of-pocket expenses.
On October 29, 1999, the Company amended its definitive Agreement
and Plan of Merger. The amendments reflect modifications and
clarifications to the price-based termination provisions with
regard to the determination of the index group price. The
amendments also reflect the revision of the financial institutions
group index to remove Dime Bancorp, Inc. The Bank and North Fork
Bank also executed the Subsidiary Agreement and Plan of Merger,
pursuant to which the Bank will merge with and into North Fork
Bank.
On February 10, 2000, the stockholders of Reliance Bancorp, Inc
approved the Amended Agreement and Plan of Merger. The Company had
previously received all regulatory agency approvals, therefore,
the consummation of the merger will occur before the end of February
2000.
3. IMPACT OF NEW ACCOUNTING STANDARDS
In June 1998, the FASB issued Statement of Financial Accounting
Standards No. 133, "Accounting for Derivative Instruments and
Hedging Activities" ("SFAS No.133"). SFAS No. 133 establishes
accounting and reporting standards for derivative instruments and
for hedging activities. It requires that an entity recognize all
derivatives as either assets or liabilities in the statement of
financial condition and measure those instruments at fair value.
The accounting for changes in the fair value of a derivative (that
is, unrealized gains and losses) depends on the intended use of
the derivative and the resulting designation. SFAS No. 133 is
effective for fiscal quarters of fiscal years beginning after June
15, 1999 and does not require restatement of prior periods. In
June 1999, the FASB issued SFAS No. 137, "Deferral of Effective
Date of SFAS No. 133", which defers the adoption of SFAS No. 133
by one year. Management of the Company believes the implementation
of SFAS No. 133 will not have a material impact on the Company's
financial condition or results of operations.
4. COMPREHENSIVE INCOME
The Company follows Financial Accounting Standards No. 130,
"Reporting Comprehensive Income" ("SFAS No. 130"). SFAS No. 130
requires that all items that are components of "comprehensive
income" be reported in a financial statement that is displayed
with the same prominence as other financial statements.
Comprehensive income is defined as "the change in equity [net
assets] of a business enterprise during a period from transactions
and other events and circumstances from nonowner sources." It
includes all changes in equity during a period except those
resulting from investments by owners and distributions to owners.
The Company adopted the provisions of SFAS No. 130 during the
first quarter of fiscal 1999 and as such was required to (a)
classify items of other comprehensive income by their nature in a
financial statement; (b) display the accumulated balance of other
comprehensive income separately from retained earnings and
additional paid-in capital in the equity section in the statement
of financial condition and (c) reclassify prior periods presented.
As the requirements of SFAS No. 130 are disclosure-related, its
implementation had no impact on the Company's financial condition
or results of operations.
Comprehensive income for the three and six months ended December
31, 1999 and 1998 is as follows:
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
December 31, December 31,
------------------- ------------------
1999 1998 1999 1998
---- ---- ---- ----
(Unaudited) (Unaudited)
<S> <C> <C> <C> <C>
Net Income ....................................... $ 5,353 $ 5,219 $ 10,735 $ 9,990
Other comprehensive income, net of taxes:
Change in net unrealized depreciation
on securities available-for-sale
net of reclassification adjustment....... (4,087) (5,160) (8,195) (3,956)
------- ------- -------- --------
Comprehensive income.............................. $ 1 ,266 $ 59 $ 2,540 $ 6,034
======== ======= ===== =====
</TABLE>
