Exhibit 99.1
NORTH FORK BANCORP
275 BROADHOLLOW ROAD, MELVILLE, NY 11747 (631) 844-1258 FAX (631) 844-1471
FOR IMMEDIATE RELEASE CONTACT: DANIEL M. HEALY
EXECUTIVE VICE PRESIDENT
CHIEF FINANCIAL OFFICER
(631) 844-1258
NORTH FORK ANNOUNCES 20% INCREASE IN EARNINGS
FOR THE SECOND QUARTER OF 2000
MELVILLE, N.Y. - JULY 13, 2000 - NORTH FORK BANCORPORATION, INC.
(NYSE: NFB) reported net income for the quarter ended June 30, 2000 of $86
million or diluted earnings per share of $.50. This quarter represented the
first full quarter following the February 2000 acquisitions of JSB
Financial, Inc., and Reliance Bancorp, Inc. For the quarter ended June 30,
2000, the Company's return on average assets and equity were 2.35% and
25.10%, respectively. During this quarter, gains from the sale of certain
facilities and securities were offset by expenses incurred in the Company's
attempt to acquire Dime Bancorp, Inc. Core earnings in the current quarter,
eliminating the effects of these gains and Dime acquisition expenses was
$73.5 million or diluted earnings per share of $.43 as compared to
earnings, exclusive of security transactions, of $60.8 million or diluted
earnings per share of $.36 for the quarter ended June 30, 1999, a 20%
increase. Since JSB was accounted for as a pooling-of-interests transaction
for financial reporting purposes, financial data for all prior periods have
been restated to include JSB. The core return on average assets and equity
in the June 2000 quarter were 2.01% and 21.45%, respectively. Commenting on
the most recent quarter, John Adam Kanas, Chairman, President and Chief
Executive Officer said, "The earnings in the quarter are reflective of the
investments we are making in a number of new business initiatives, the
success of the integration of our two most recent acquisitions and the
prudent steps we undertook in the first quarter of this year to restructure
the Company's balance sheet during a period of rising interest rates and
economic uncertainty."
North Fork's core earnings for the six months ended June 30, 2000,
excluding the effects of the JSB merger related restructure charge, Dime
acquisition expenses, net security transactions and other non-recurring
items was $138.1 million, or diluted earnings per share of $.82 as compared
to earnings, exclusive of security transactions of $120.1 million and
diluted earnings per share of $.71 for the comparable period in the prior
year. For the six-month period of 2000, the core return on average assets
and equity were 1.93% and 21.68%, respectively. The Company's core
efficiency ratio, North Fork's perennial hallmark measurement, was 32.96%
and 34.05% in the quarter and six-month period ended June 30, 2000.
Net interest income for the June 30, 2000 quarter was $153 million
resulting in a net interest margin of 4.52%, an improvement of 29 basis
points over the immediately preceding quarter in the current year. Net
interest income for the six-month period of 2000 amounted to $292.3 million
or a net interest margin of 4.39% as compared to $261.1 million and 4.39%
for the comparable prior year period. The improvement in the net interest
margin resulted from a combination of factors, including the first
quarter's balance sheet restructuring, the increasing component of demand
deposit balances, and the growth in interest earning assets at higher
yields. "The de novo branch expansion project in Manhattan continues to
proceed ahead of schedule," said Mr. Kanas. "The opportunities for our
style of banking in the city are limitless." The Company will have eight
locations in Manhattan by year end 2000 compared to three at the end of
1999. Total demand deposits at June 30, 2000, approximated $1,847 million
or 21% of total deposits compared to $1,558 million at December 31, 1999,
an 18.6% increase. A major contributor to the growth in these deposit
balances has been the Manhattan expansion program.
Loans, net of unearned income, were $9.1 billion at June 30, 2000, an
increase of $215.6 million over the immediately preceding quarter or an
annualized growth rate of 9.7%. Loan growth was distributed through all of
the Company's product offerings, with lease finance and consumer loans
having the largest portions. Lease finance receivables originated by All
Points Capital Corp., the Company's wholly owned lease finance subsidiary,
have grown to $135.4 million since its inception in the fourth quarter of
1999. "Although originations in the multi-family and home mortgage
residential portfolios have declined recently, they have been more than
offset by quality loan growth in other areas," said Kanas. Non-performing
assets at June 30, 2000 of $14.8 million remained relatively unchanged from
the previous quarter. The reserve for loan loss coverage to non-performing
loans was 634% at the end of the current quarter. Considering that
approximately $5.9 billion or 65% of total loans are represented by
residential and multi-family loans which have historically experienced
minimal charge-offs, the Company believes that the reserve for loan loss
coverage for all of its other loans is greater than comparable banking
institutions. "The quality of our loan portfolio is outstanding," said Mr.
Kanas. "We are not exposed to the types of loans that have gained recent
notoriety and been the subject of losses at other banks."
Non-interest and fee based income for the second quarter of 2000,
excluding the effect of security transactions and other gains, was $20.8
million compared to $15.6 million in the second quarter of 1999, a 33%
increase. For the six-month period ended June 30, 2000 non-interest and fee
based income was $40 million compared to $30.9 million in 1999, a 28%
increase. The gains are in part a result of the recent acquisitions.
Year-to-Date Special Charges and Non-Recurring Items
The quarter and the year-to-date periods ended June 30, 2000,
included several significant transactions and expense items. These included
the Jamaica merger-related restructure charge, securities transactions,
Dime related expenses and other items.
The following table sets forth the reconciliation from net income, as
reported, to core earnings for the three and six-month periods ended June
30, 2000.
<TABLE>
<CAPTION>
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30, 2000 JUNE 30, 2000
-------------------------------------------
<S> <C> <C> <C> <C>
NET INCOME $ 86,019 $ 87,931
Items Excluded from Core Earnings:
Interest Expense
Gain on Sale of Facilities (10,392) (10,392)
Net Securities (Gains)/Losses (11,148) 8,600
Dime Related Expenses 2,300 8,300
Special Provision for Loan Losses - 6,750
Net Gain on Loan Sales - (2,303)
Merger Related Restructure Charge - 50,499
-------- --------
(19,240) 61,454
Related Tax Effect 6,734 (17,927)
-------- --------
(12,506) 43,527
Jamaica Tax Bad Debt Recapture,
net of Federal Benefit - 6,600
CORE EARNINGS $ 73,513 $138,058
-------- --------
Core Earnings per Share - Basic $0.43 $0.83
Core Earnings per Share - Diluted $0.43 $0.82
Core Cash Earnings per Share - Basic $0.46 $0.88
Core Cash Earnings per Share - Diluted $0.46 $0.87
</TABLE>
* * * * *
Investors and security holders are advised to read North Fork's
registration statement and tender offer statement with respect to its
exchange offer for Dime common stock, North Fork's proxy statement with
respect to North Fork's proposed solicitation of proxies from Dime
stockholders in connection with Dime's 2000 annual meeting of stockholders,
and any amendments or supplements to any of such documents (when they
become available), because each of these documents contains, or will
contain, important information. Investors and security holders may obtain a
free copy of the exchange offer registration statement, the tender offer
statement, the proxy statement, any amendments or supplements to any of
such documents (when they become available), and any other documents filed
by North Fork with the SEC, at the SEC's Internet web site at www.sec.gov.
Each of these documents may also be obtained free of charge by overnight
mail or direct electronic transmission by calling North Fork's information
agent, D.F. King & Co., Inc. toll-free at 1-800-755-7250.
NORTH FORK BANCORPORATION, INC.
(NYSE: NFB)
(IN THOUSANDS, EXCEPT RATIOS AND PER SHARE AMOUNTS)
THREE MONTHS ENDED SIX MONTHS ENDED
CORE EARNINGS HIGHLIGHTS JUNE 30, 2000 JUNE 30, 2000
------------------------ -------------------------------------
Interest Income $ 271,142 $ 525,310
Interest Expense 118,176 233,014
-------------------------------------
Net Interest Income 152,966 292,296
Provision for Loan Losses 2,250 4,500
-------------------------------------
Net Interest Income after Provision
for Loan Losses 150,716 287,796
-------------------------------------
Non-Interest Income:
-------------------
Fees and Service Charges on Deposit
Accounts 9,601 18,056
Investment Management, Commissions
and Trust Fees 4,623 9,356
Mortgage Banking Operations 942 1,797
Other Operating Income 5,584 10,808
-------------------------------------
Total Non-Interest Income 20,750 40,017
-------------------------------------
Non-Interest Expense:
--------------------
Other Operating Expenses 47,558 96,653
Capital Securities Costs 5,140 9,774
Amortization of Intangible Assets 5,671 8,989
-------------------------------------
Total Non-Interest Expense 58,369 115,416
-------------------------------------
Income Before Income Taxes 113,097 212,397
Provision for Income Taxes 39,584 74,339
-------------------------------------
Net Income $ 73,513 $ 138,058
=====================================
Earnings Per Share - Basic $0.43 $0.83
Earnings Per Share - Diluted $0.43 $0.82
Cash Earnings Per Share - Diluted(1) $0.46 $0.87
Average Shares Outstanding - Basic 171,672 166,994
Average Shares Outstanding - Diluted 172,847 168,144
Cash Dividends per Share $0.180 $0.360
Return on Average Total Assets 2.01% 1.93%
Return on Average Stockholders'
Equity(2) 21.45% 21.68%
Yield on Interest Earning Assets 7.93% 7.81%
Cost of Funds 4.24% 4.23%
Net Interest Margin(3) 4.52% 4.39%
Core Efficiency Ratio(4) 32.96% 34.05%
<TABLE>
<CAPTION>
NORTH FORK BANCORPORATION, INC.
(NYSE: NFB)
(IN THOUSANDS, EXCEPT RATIOS AND PER SHARE AMOUNTS)
THREE MONTHS ENDED SIX MONTHS ENDED
INCOME STATEMENT HIGHLIGHTS - ACTUAL JUNE 30, 2000 JUNE 30, 1999 JUNE 30, 2000 JUNE 30, 1999
------------------------------------ ----------------------------- -----------------------------
<S> <C> <C> <C> <C>
Interest Income $ 271,142 $ 230,007 $ 525,310 $ 452,548
Interest Expense 118,176 98,299 233,014 191,476
----------------------------- -----------------------------
Net Interest Income 152,966 131,708 292,296 261,072
Provision for Loan Losses 2,250 1,255 11,250 2,512
----------------------------- -----------------------------
Net Interest Income after Provision
for Loan Losses 150,716 130,453 281,046 258,560
----------------------------- -----------------------------
Non-Interest Income:
-------------------
Fees and Service Charges on Deposit
Accounts 9,601 7,058 18,056 13,756
Investment Mgmt., Commissions and
Trust Fees 4,623 4,203 9,356 8,572
Mortgage Banking Operations 942 957 1,797 1,898
Other Operating Income 5,584 3,384 13,111 6,654
Gain on Sale of Facilities 10,392 - 10,392 -
Net Securities Gains/(Losses) 11,148 7,017 (8,600) 9,720
----------------------------- -----------------------------
Total Non-Interest Income 42,290 22,619 44,112 40,600
----------------------------- -----------------------------
Non-Interest Expense:
--------------------
Other Operating Expenses 47,558 44,845 96,653 89,219
Dime Related Expenses 2,300 - 8,300 -
Capital Securities Costs 5,140 4,211 9,774 8,422
Amortization of Intangible Assets 5,671 2,084 8,989 4,159
Merger Related Restructure Charge - - 50,499 -
----------------------------- -----------------------------
Total Non-Interest Expense 60,669 51,140 174,215 101,800
----------------------------- -----------------------------
Income Before Income Taxes 132,337 101,932 150,943 197,360
Provision for Incomes Taxes 46,318 36,679 63,012 71,060
----------------------------- -----------------------------
Net Income $ 86,019 $ 65,253 $ 87,931 $126,300
============================= =============================
Earnings Per Share - Basic $0.50 $0.39 $0.53 $0.76
Earnings Per Share - Diluted $0.50 $0.39 $0.52 $0.75
Cash Earnings Per Share - Diluted(1) $0.53 $0.40 $0.58 $0.78
Average Shares Outstanding - Basic 171,672 166,169 166,994 166,804
Average Shares Outstanding - Diluted 172,847 167,594 168,144 168,311
Cash Dividends per Share $0.180 $0.150 $0.360 $0.300
Return on Average Total Assets 2.35% 2.01% 1.23% 2.00%
Return on Average Stockholders'
Equity(2) 25.10% 21.82% 13.81% 21.43%
Yield on Interest Earning Assets 7.93% 7.49% 7.81% 7.57%
Cost of Funds 4.24% 3.95% 4.23% 3.95%
Net Interest Margin(3) 4.52% 4.31% 4.39% 4.39%
Core Efficiency Ratio(4) 32.96% 34.62% 34.05% 34.64%
</TABLE>
<TABLE>
<CAPTION>
NORTH FORK BANCORPORATION, INC.
(NYSE: NFB)
(IN THOUSANDS, EXCEPT RATIOS AND PER SHARE AMOUNTS)
BALANCE SHEET HIGHLIGHTS JUNE 30, 2000 MARCH 31, 2000 DECEMBER 31, 1999 JUNE 30, 1999
------------------------ ------------------------------------------------------------------
<S> <C> <C> <C> <C>
Total Assets $ 14,682,748 $ 15,024,882 $ 13,676,156 $ 13,142,306
Loans, net 9,083,782 8,868,148 7,897,688 7,253,742
Allowance for Loan Losses 88,010 87,491 74,525 75,333
Securities Available-for-Sale 3,449,273 3,899,591 3,682,210 3,612,810
Securities Held-to-Maturity 1,219,444 1,279,489 1,351,504 1,562,017
Intangible Assets 352,549 358,220 79,151 82,109
Demand Deposits 1,846,973 1,718,987 1,558,044 1,503,254
Interest Bearing Deposits 7,074,447 7,315,058 6,083,519 6,138,876
Borrowings 3,944,992 4,256,781 4,559,200 3,899,796
Capital Securities 244,326 244,320 199,314 199,301
Stockholders' Equity 1,342,503 1,293,029 999,098 1,179,193
Book Value Per Share $7.72 $7.45 $6.38 $7.08
Actual Shares Outstanding 173,855 173,582 156,585 166,644
SELECTED FINANCIAL HIGHLIGHTS
-----------------------------
CAPITAL RATIOS:
-----------------------------
Risk Based Capital
Tier 1 14.71% 13.98% 13.70% 16.43%
Total 15.77% 15.07% 14.95% 17.83%
Leverage Ratio 8.87% 8.79% 8.57% 10.02%
ASSET QUALITY:
-----------------------------
Non-Performing Loans $ 13,881 $ 13,112 $ 15,128 $ 14,361
Other Real Estate 913 1,081 787 835
------------------------------------------------------------------
Total Non-Performing Assets $ 14,794 $ 14,193 $ 15,915 $ 15,196
==================================================================
Restructured, Accruing Loans $ -- $ -- $ -- $ 557
Allowance for Loan Losses to
Non-Performing Loans 634% 667% 493% 525%
Allowance for Loan Losses to
Total Loans, net 0.97% 0.99% 0.94% 1.04%
Non-Performing Loans to Total
Loans, net 0.15% 0.15% 0.19% 0.20%
</TABLE>
Notes to June 30, 2000 Earnings Release
(1) Cash earnings per share reflect the amortization of intangible assets
as an addition to net income.
(2) Excludes the effect of the SFAS No. 115 adjustment.
(3) Presented on a tax equivalent basis.
(4) The core efficiency ratio is defined as the ratio of non-interest
expense, net of other real estate expenses and other non-recurring
charges, to net interest income on a tax equivalent basis and other
non-interest income, net of securities (losses)/gains and other
non-recurring items.
