17
FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For Quarter Ended September 30, 1995
Commission File No. 0-14995
YORK FINANCIAL CORP.
(Exact name of Registrant as specified in its charter)
Pennsylvania
(State or other jurisdiction of incorporation or organization)
23-2427539
(I.R.S. employer identification number)
101 South George Street, York, Pa. 17401
(Address of principal executive offices)
(Zip code)
(717) 846-8777
Registrant's telephone number, including area code
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,
and (2) has been subject to such filing requirements for the past
90 days.
Yes [ X ]
No [ ]
Indicate the number of shares outstanding of each of the issuer's
classes of common stock, as of the latest practicable date.
Common stock, par value $1.00 per share 5,989,002 shares
outstanding as of September 30, 1995.
YORK FINANCIAL CORP.
INDEX
Part I. FINANCIAL INFORMATION Page Number
Item 1. Financial Statements
Consolidated balance sheets
September 30, 1995 and June 30, 1995 (unaudited) 3
Consolidated statements of income,
three months ended September 30, 1995
and 1994 (unaudited) 4
Consolidated statements of cash flows,
three months ended September 30, 1995
and 1994 (unaudited) 5
Notes to consolidated financial statements 6
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations 7
Part II. OTHER INFORMATION
Item 1. Legal Proceedings 14
Item 2. Changes in Securities 14
Item 3. Defaults upon Senior Securities 14
Item 4. Submission of Matters to a Vote of
Security Holders 14
Item 5. Other Information 14
Item 6. Exhibits and Reports on Form 8-K 14
SIGNATURES 15
<TABLE>
YORK FINANCIAL CORP. AND
SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands, unaudited) September June
30 30
1995 1995
ASSETS
<S> <C> <C>
Cash and due from banks:
Noninterest-earning $19,473 $19,468
Interest-earning 6,750 19,861
26,223 39,329
Loans held for sale, net 15,322 6,450
Securities held for trading ---
4,451
Securities available for sale 29,797 31,569
Securities held to maturity
(fair value at Sept. 30,
1995 -
$ 28,275 and June 30, 1995 - 28,674 29,293
$28,902)
Loans receivable, net 888,502 845,205
Real estate, net 17,402 17,656
Premises and equipment 12,398 12,536
Federal Home Loan Bank stock, at 5,177 5,177
cost
Accrued interest receivable 7,058 6,460
Other assets 9,294 8,091
Investments in joint ventures 3,679 3,701
Total Assets
$1,043,526 $1,009,918
LIABILITIES AND
STOCKHOLDERS' EQUITY
Liabilities:
Deposits $854,825 $832,056
Federal Home Loan Bank
advances
and other borrowings 76,521 65,759
Advances from borrowers for
taxes and insurance 2,526 5,098
Other liabilities 22,718 21,675
Total Liabilities 956,590 924,588
Stockholders' Equity:
Preferred Stock: 10,000,000 --- ---
shares
authorized and unissued
Common Stock, $1.00 par value:
Authorized 10,000,000
shares; issued
Sept. 30, 1995 - 5,989 5,422
5,989,002;
June 30, 1995 -
5,421,949
Additional capital 66,468 55,911
Retained earnings 15,550 24,946
Unrealized gains 122 244
Unearned ESOP shares (1,193) (1,193)
Total Stockholders' Equity 86,936 85,330
Total Liabilities and
Stockholders' Equity $1,043,526 $1,009,918
See notes to consolidated
financial statements
</TABLE>
<TABLE>
YORK FINANCIAL CORP. AND
SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(In thousands except per share data, unaudited) Months
Three Months Ended
September 30
1995 1994
<S> <C> <C>
Interest income:
Interest and fees on loans $18,379 $13,736
Interest on securities held for 91 40
trading
Interest on securities available 577 873
for sale
Interest and dividends on
securities
held to maturity 532 506
Other interest income 234 439
Total interest income 19,813 15,594
Interest expense:
Interest on deposits 10,268 7,793
Interest on borrowings 1,048 2
Total interest expense 11,316 7,795
Net interest income 8,497 7,799
Provision for loan losses 600 670
Net interest income after provision 7,897 7,129
for loan losses
Other income:
Mortgage banking 689 579
Loss on sales of real estate (265) (36)
Fees and service charges 585 515
Other operating income 300 342
Total other income 1,309 1,400
Other expenses:
Salaries and employee benefits 2,753 2,636
Occupancy 655 652
Federal deposit insurance 465 458
Real estate 179 23
Data processing 244 184
Other 1,283 1,223
Total other expenses 5,579 5,176
Income before income taxes 3,627 3,353
Provision for income taxes 1,456 1,302
Net income $2,171 $2,051
Per share data:
Net income $0.35 $0.34
Cash dividends paid $0.136 $0.124
Weighted average shares 6,244,526 6,080,118
See notes to consolidated financial
statements
</TABLE>
<TABLE>
YORK FINANCIAL CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands, unaudited)
Three Months Ended
September 30
1995 1994
<S> <C> <C>
OPERATING ACTIVITIES
Net income $2,171 $2,051
Adjustments to reconcile net income to
net cash
provided by operating activities:
Amortization and accretion on (649) (103)
securities and loans, net
Provision for loan losses 600 670
Provision for real estate losses 100 ---
Depreciation and amortization 377 355
Loans originated for sale (35,202) (11,121)
Proceeds from sales of trading 23,405 10,493
securities
Realized gains (losses) on (17) 221
trading securities
Increase in other assets (1,455) (551)
Increase (Decrease) in other 1,327 (2,720)
liabilities
Other (210) (164)
Net cash used in operating activities (9,553) (869)
INVESTING ACTIVITIES
Proceeds from sales of securities 7,800 ---
available for sale
Principal repayments on securities 1,772 2,552
Loans originated or acquired, net of
increase in deferred loan fees (83,984) (75,186)
Principal collected on loans 39,255 42,197
Proceeds from sales of loans --- 2,254
Purchases of real estate (47) (98)
Proceeds from sales of real estate 1,280 1,570
Purchases of premises and equipment, (123) (780)
net
Other (2,596) (1,355)
Net cash used in investing activities (36,643) (28,846)
FINANCING ACTIVITIES
Net increase (decrease) in demand
deposits, NOW accounts,
savings accounts, and 31-day 9,884 (25,521)
certificates of deposit
Net increase in certificates of deposit 12,885 20,885
Net increase in short-term borrowings 10,765 ---
Repayments of Federal Home Loan Bank (3) (3)
advances
and other borrowings
Issuance of common stock 372 365
Cash dividends paid (813) (723)
Net cash provided by (used in) financing 33,090 (4,997)
activities
Decrease in cash and cash equivalents (13,106) (34,712)
Cash and cash equivalents at beginning of 39,329 71,669
year
Cash and cash equivalents at end of year $26,223 $36,957
</TABLE>
YORK FINANCIAL CORP. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
September 30, 1995
Note A -- Basis Of Presentation
The accompanying unaudited condensed consolidated financial
statements have been prepared in accordance with generally
accepted accounting principles for interim financial information
and with the instructions to Form 10-Q and Article 10 of
Regulation S-X. Accordingly, they do not include all of the
information and footnotes required by generally accepted
accounting principles for complete financial statements. In the
opinion of management, all adjustments (consisting of normal
recurring accruals) considered necessary for a fair presentation
have been included. Operating results for the three month period
ended September 30, 1995 are not necessarily indicative of the
results that may be expected for the year ended June 30, 1996.
For further information, refer to the consolidated financial
statements and footnotes thereto included in the Company's annual
report on Form 10-K for the year ended June 30, 1995.
Cash Flow Information: For purposes of the statements of cash
flows, cash equivalents include cash and amounts due from banks.
During the three months ended September 30, 1995 and 1994, the
Association exchanged loans for mortgage-backed securities in the
amounts of $26.3 million and $14.0 million respectively. During
the three months ended September 30, 1995 and 1994, the
Association transferred unpaid loan balances from loans to
real estate due to foreclosures of $1.6 million and $1.1 million
respectively. Upon implementation of FASB 114, $200,000 of loans
classified as in-substance foreclosers were reclassified to loans
during the period ended September 30, 1995.
Reclassifications: Certain reclassifications have been made to
the fiscal 1995 consolidated financial statements to conform with
the fiscal 1996 presentation.
Note B -- Earnings Per Share Data
Net income per share is computed based on the weighted average
number of common shares outstanding and dilutive common stock
equivalents, adjusted for stock dividends. Cash dividends paid
per share are based on the number of common shares outstanding at
each declaration date, adjusted for stock dividends. On October
20, 1995, the Corporation declared a 10% stock dividend to
shareholders of record on November 3, 1995, payable November 15,
1995.
Note C -- Accounting for Mortgage Servicing Rights
In May 1995 the Financial Accounting Standard Board (FASB) issued
Statement of Financial Accounting Standards No. 122 (SFAS 122).
"Accounting for Mortgage Servicing Rights an amendment of FASB
Statement No. 65." This statement requires a mortgage banking
enterprise to capitalize retained mortgage servicing rights on
loans sold or securitized by allocating the total cost of the
mortgage loans between the mortgage servicing rights and the
loans (without the servicing rights) based on their respective
fair values. The new statement also specifies new procedures for
assessing impairment of capitalized mortgage servicing rights,
whenever capitalized, and requires that impairment shall be
recognized through a valuation allowance for individual portfolio
stratifications based on the fair value of those rights.
The Corporation adopted SFAS 122 effective July 1, 1995 which
resulted in an increase in mortgage banking income of $300,000 in
the first quarter. In accordance with SFAS 122, prior period
financial statements have not been restated. The total book
value of the capitalized mortgage servicing rights at September
30, 1995 was $1.0 million and the aggregate fair market value
totaled $1.1 million. A valuation model that calculates the
present value of future cash flows was used to estimate fair
value. In using this valuation method, the Company incorporated
assumptions that market participants would use in estimating
future net servicing income, which included estimates of the cost
of servicing per loan, the discount rate, float value and
prepayment speeds.
For purposes of measuring impairment, the following risk
characteristics were used to stratify the post implementation
originated mortgage servicing rights: product type, term of
loan, and interest rates. Based on these measurement factors a
valuation allowance was not required at September 30, 1995.
Note D -- Accounting for Creditors for Impairment of a Loan
In May 1993, the FASB issued Statement No. 114, "Accounting by
Creditors for Impairment of a Loan" as amended by Statement No.
118, "Accounting by Creditors for Impairment of a Loan - Income
Recognition and Disclosures." As a result of applying the new
rules, certain loans which are deemed to be impaired will be
reported at the present value of expected future cash flows using
the loan's effective interest rate, or as a practical expedient,
at the loans observable market price or the fair value of the
collateral if the loan is collateral dependent. The Corporation
adopted these statements July 1, 1995.
At September 30, 1995, the recorded investment in loans that are
considered to be impaired under Statement 114 was $1.6 million
(which were on a nonaccrual basis). The related allowance for
credit losses was $292,000. The average recorded investment in
impaired loans for the period ended September 30, 1995 was
approximately $1.6 million. During this period the Corporation
did not recognize interest income on loans considered impaired.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
CONSOLIDATED FINANCIAL CONDITION AND RESULTS OF OPERATIONS OF
YORK FINANCIAL CORP.
General
York Financial Corp. ("York Financial" or "Corporation") is
a unitary savings and loan holding company with it's principal
offices located in York, Pennsylvania. York Federal Savings and
Loan Association ("York Federal" or "Association"), a federally
chartered savings and loan association, is the primary operating
unit of the Corporation.
The Corporation's net income is highly dependent on the
interest rate spread between the average rate earned on loans and
securities and the average rate paid on deposits and borrowings
as well as the amount of the respective assets and liabilities
outstanding. Other operating income is a supplement to
interest income and is primarily the result of effective
mortgage banking activities including gains (losses) on sales of
loans and mortgage-backed securities created from loan
originations and the resulting service fee income derived from
the portfolio of loans serviced for others. Other operating
income also includes fees and service charges assessed on loan
and deposit transactions.
Asset/Liability Management
In an effort to maintain control over net interest
income, management of York Federal focuses its attention on
managing the interest rate sensitivity of assets and liabilities
and controlling the volume of lending, investment and borrowing
activity. By managing the ratio of interest sensitive assets to
interest sensitive liabilities repricing in the same periods, the
Corporation seeks to minimize the negative effect of interest
rate fluctuations.
The asset sensitivity gap at the one year time period
decreased $23.1 million in the three months ended September 30,
1995 to $81.2 million. This decrease was primarily attributable
to retention of fixed rate loans and mortgage backed securities
funded by a decrease in liquid assets and a changing composition
within the liability portfolio including growth in short term
borrowings and variable rate deposit products.
Interest Sensitivity Gap Analysis
Subject to Repricing
(Dollars in thousands) September June
30 30
1995 1995
Earning assets maturing or repricing $673,752 $682,228
within one year
Interest bearing liabilities
maturing or
repricing within one year 592,600 578,004
Interest sensitivity gap within one $81,152 $104,224
year
Cumulative interest sensitivity gap
within one year
as a percent of total assets 7.78% 10.32%
The Corporation also monitors its interest rate risk in
accordance with regulatory direction. Fluctuations in net
interest income and the market value of portfolio equity are
determined in various interest rate scenarios and monitored
against acceptable limitations established by management and
approved by the Board of Directors. Interest rate risk as
indicated through balance sheet simulations at September 30,
1995 is considered to be within acceptable limits. The
management of York Federal is committed to managing the asset
portfolio in order to maximize the yield and maintain an interest
rate sensitivity of York Federal's earning assets that insulates
it from the potential negative effect of interest rate
fluctuations.
Asset Quality
Management is aware of the risks inherent in lending
and continually monitors risk characteristics of the loan
portfolio. The Association's policy is to maintain the allowance
for loan losses at a level believed adequate by management to
absorb potential loan losses within the portfolio. Management's
determination of the adequacy of the allowance is performed by an
internal loan review committee and is based on risk
characteristics of loans, past loss experience, loan portfolio
growth trends, economic conditions and such other factors that
deserve recognition. Additions to the allowance are charged to
operations.
An analysis of the allowance for loan losses, for the periods
indicated is as follows:
<TABLE>
(Dollars in Thousands) Three Fiscal
Months Year
Ended Ended
September 30 June 30
1995 1995
<S> <C> <C>
Total allowance for loan losses at $5,840 $4,492
beginning of period
Loans charged-off:
Real Estate - mortgage:
Residential 111 1,138
Commercial 35 6
Consumer 10 127
Total loans charged-off 156 1,270
Recoveries:
Real Estate - mortgage: --- 185
Commercial 23 92
Consumer --- 1
Total recoveries 23 278
Net loans charged-off 133 992
Provision for loan losses 600 2,340
Total allowance for loan losses at end $6,307 $5,840
of period
Percentage of net charge-offs to
average loans
outstanding during the period 0.02% 0.13%
Percentage of allowance for loan
losses to adjusted total loans 0.70% 0.69%
</TABLE>
The allowance for loan losses totaled $6.3 million or .70%
of adjusted total loans of $894.8 million at September 30, 1995.
Such amount is considered adequate relative to management's
assessment of risk characteristics inherent in the loan
portfolio. While management uses available information to
recognize losses on loans, future additions to the allowance may
be necessary based on specific circumstances related to problem
loans as well as changes in economic conditions.
An analysis of nonperforming assets for the periods
indicated is summarized as follows:
<TABLE>
(Dollars in thousands) September June
30 30
1995 1995
<S> <C> <C>
Loans accounted for on a
nonaccrual basis:
Real estate-mortgage:
Commercial $3,821 $3,498
Accruing loans which are
contractually
past due 90 days or more:
Real estate-mortgage:
Residential 9,764 9,133
Consumer 524 433
Total of 90 days past due 10,288 9,566
loans
Total of nonaccrual and 90 days $14,109 $13,064
past due loans
As a percent of total loans 1.56% 1.53%
Real estate owned:
Real estate acquired through
foreclosure
or repossession by loan type:
Residential $5,968 $5,981
Commercial 2,509 2,278
Land 5,049 5,107
Loans classified as in- --- 200
substance foreclosures
Allowance for real estate (719) (630)
losses
Total real estate owned $12,807 $12,936
As a percent of total assets 1.23% 1.28%
Total nonperforming assets $26,916 $26,000
As a percent of total assets 2.58% 2.57%
</TABLE>
Management recognizes the risk of potential diminution of
value of real estate owned during the holding period and provides
for such risk by maintaining a general allowance for real estate
losses (such reserve is separate from and in addition to the
allowance for loan losses). Management continually monitors the
risk profile of real estate owned and maintains an allowance for
real estate losses at a level believed adequate to absorb
potential losses within the real estate portfolio. For the
first three months of fiscal 1996, additions to the allowance
in the amount of $100,000 which was offset by charge offs net of
recoveries to the allowance of $11,000 resulted in an increase in
the allowance for Real Estate Owned losses of $89,000 to $719,000
at September 30, 1995.
Results of Operations
Three months Ended September 30, 1995 Compared to September 30,
1994
Net Interest Income
York Financial's earnings are significantly affected by the
level of York Federal's net interest income, the difference
between the income it receives on its loan portfolio and other
investments and its cost of money, consisting primarily of
interest paid on deposits and borrowings. Net interest income
is affected by the average yield on interest-earning asset, the
average rate on interest-bearing liabilities, and the ratio of
interest-earning assets to interest-bearing liabilities.
Net interest income for the three months ended
September 30, 1995 was $8.5 million compared to $7.8 million for
the same period last year. The increase in net interest income
was attributable to an increase in average earning assets which
offset the impact of a decrease in the interest rate spread from
period to period. The margin on interest-earning assets
decreased to 3.57% from 3.85% for the three months ended
September 30, 1995 and 1994, respectively. The impact of rising
loan and investment rates resulted in a 60 basis point increase
to the average yield on interest earning assets to 8.24% for the
three months ended September 30, 1995 as compared to 7.64% in the
same period in the prior year. The increasing cost of deposits
and other borrowings during the first three months of fiscal 1996
caused the average rate on interest bearing liabilities to
increase to 4.96% as compared to 3.96% in the same period last
year. The net effect caused the interest rate spread for the
current period to decrease to 3.28% from 3.69% in the same
period last year.
Provision for Loan Losses
Management is aware of the risks inherent in lending and
continually monitors risk characteristics of the loan portfolio.
See "Asset Quality".
Other Income
Other income was $1.3 million for the three months ended
September 30, 1995, a decrease of 6.5% from the three months
ended September 30, 1994. On July 1, 1995, the Corporation
implemented SFAS 122 (see note C), resulting in a favorable
impact to earnings. Mortgage banking income for the three months
ended September 30, 1995 increased $110,000 to $689,000 or 19.0%
as compared to the same period in 1994 and includes the adoption
of SFAS 122, gains on sales of loans and trading securities and
income from servicing fees. The portfolio of loans serviced for
others totaled $578.0 million at September 30, 1995 as compared
to $ 563.4 million at September 30, 1994. The servicing rate
earned on the portfolio of loans serviced for others for the
three months ended September 30, 1995 decreased to .269% from
.280% in the same period in 1994. Fees and service charges for
the three months ended September 30, 1995 remained constant as
compared to the same period in 1994. Other operating income was
$300,000 in the first three months of fiscal 1996 as compared to
$342,000 in the first three months of fiscal 1995. This amount
represents income from operations of subsidiaries, including
commissions earned from discount brokerage activities, appraisal
and construction inspection services provided to independent
third parties and equity in earnings of joint ventures.
Other Expenses
Other expenses of $5.6 million increased $403,000 or 7.8%
for the three months ended September 30, 1995 as compared to the
same period in 1994. Salaries and employee benefits increased
$117,000 or 4.4% over the same period in 1994 representing
primarily merit increases. Real estate expenses increased
$156,000 over September 30, 1994 and is primarily attributable to
an increase in the provision for possible real estate losses (see
asset quality), increased carrying costs of $56,000 related to
maintaining the portfolio of properties and settlement and legal
fees related to disposition of properties. Data processing cost
increased $60,000 or 32.6% and are primarily attributed to the
installation of a teller automation system and increased cost of
services.
Provision for Income Taxes
The provision for income taxes of $1.5 million for the three
months ended September 30, 1995 represents an effective tax rate
of 40.1% as compared to 38.8% for the same period last year.
Liquidity and Capital Resources
Under current regulations, York Federal is required to
maintain liquid assets at 5.0% or more of its net withdrawable
deposits plus short-term borrowings. Throughout the three months
ended September 30, 1995 and fiscal year ended June 30, 1995,
York Federal maintained an average liquidity level which was in
compliance with the regulatory requirements. At September 30,
1995, the Association's liquidity level was 5.09%.
Thrifts must comply with three separate capital standards.
The following table sets forth the capital position of the
Association as of September 30, 1995:
<TABLE>
(Dollars in
thousands)
Requirement Actual
Dollars Percent Dollars Percent Excess
<S> <C> <C> <C> <C> <C>
Tangible Capital $15,529 1.5% $76,845 7.4% $61,316
Core Capital $31,059 3.0% $76,845 7.4% $45,786
Risk-Based Capital $55,888 8.0% $82,032 11.7% $26,144
</TABLE>
At September 30, 1995, York Federal is considered a well
capitalized association for capital distribution purposes and
therefore, its capital distributions may be made up to 100% of
its net income to date during the calendar year plus an amount
that would reduce its surplus capital ratio at the beginning of
the calendar year by one-half. At September 30, 1995, the total
allowable capital distribution was $20.0 million. Transactions
with affiliates are limited to 10% of capital and surplus per
affiliate with an aggregate limit on all such transactions with
affiliates to 20% of capital and surplus. At September 30, 1995,
such transactions are within these regulatory limits.
York Federal is insured by the FDIC through the Savings
Association Insurance Fund ("SAIF) and pays annual insurance fees
of 23 basis points on insured deposits, the lowest rate currently
permitted. The FDIC insures commercial banks and certain savings
banks through the Bank Insurance Fund ("BIF"), which recently
lowered their insurance rates to 4 basis points as commercial
banks have reached the required capitalization level of $1.25 for
each $100 in deposits. This BIF and SAIF insurance premium
disparity places SAIF insured institutions at a significant
competitive disadvantage since the average SAIF premium currently
remains at 24 basis points.
Proposed legislation to accelerate the recapitalization of
the SAIF by assessing a one time charge of approximately 85 basis
points is under consideration. If enacted, this one time
assessment could result in a pre-tax charge to the Association's
earnings of approximately $6.9 million. Such charge will not
impact York Federal's status as a well-capitalized institution
qualifying for the lowest SAIF insurance premium. Management
expects that the existing annual SAIF premium paid by the
Association will be lowered from 23 basis points to as low as 4
basis points as a result of the proposed one time assessment
resulting in a favorable impact to earnings in future years. It
cannot be determined at this time what the outcome of these
events and proposals will be.
York Federal's primary sources of funds to support lending
and other general business activities are operations, loan
repayments including monthly amortization and prepayments, the
sale of loans and mortgage-backed securities, deposits, short and
long-term advances from FHLB of Pittsburgh and Federal Reserve
Bank of Philadelphia and other short-term borrowings. Deposits
increased $74.0 million or 9.5% over prior year-end levels. In
addition, at September 30, 1995, York Federal has FHLB advances
outstanding in the amount of $75.3 million at a weighted average
interest rate of 5.78 %. In accordance with the stated credit
policy of the FHLB of Pittsburgh, additional borrowings of
approximately $28.2 million are available to York Federal at
September 30, 1995. However, York Federal may increase its
borrowings over amounts currently available by purchasing
additional FHLB stock.
Amortization and prepayments of loans and proceeds from loan
sales within the Association's mortgage banking activity
represent a substantial source of funds to York Federal. These
sources amounted to $72.2 million for the three months ended
September 30, 1995.
The principal use of York Federal funds is the origination
of mortgage and other loans. Loan demand resulted in total
originations of $130.7 million for the period ended September 30,
1995 compared to $88.7 million for the same period in 1994. The
$40.9 million increase in loan originations over the prior fiscal
year is due to an increase in expanded mortgage broker
relationships which were favorably impacted by a loan rate
environment in the first three months of fiscal 1996.
PART II. OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
None
ITEM 2. CHANGES IN SECURITIES
None
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
None
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF
SECURITY HOLDERS
Annual meeting of Stockholders of York Financial
Corp. was held October 25, 1995. Business transacted
at the meeting was as outlined in the Notice of Annual
Meeting and Proxy Statement dated September 30, 1995.
ITEM 5. OTHER INFORMATION
None
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
The following exhibit is included herein:
(11) Statement re: computation of earnings per
share
The company did not file any reports on Form 8-K
during the three months ended September 30, 1995.
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 thereunto duly authorized.
York Financial Corp.
(Registrant)
Date November 10, 1995 /s/Robert W. Pullo
Robert W. Pullo, President -
Chief Executive Officer
Date November 10, 1995 /s/James H. Moss
James H. Moss, Senior Vice President
- Chief Financial Officer/
Treasurer
(11) -- Statement re: Computation of Earnings Per Share
<TABLE>
Three Months Ended
September 30
1995 1994
(Dollars in thousands, except per share data)
<S> <C> <C>
Primary:
Average shares outstanding 5,903,166 5,765,679
Net effect of dilutive stock
options -- based on the
treasury stock method using
average market price 341,360 314,439
Totals 6,244,526 6,080,118
Net Income $2,171 $2,051
Per share amount $0.35 $0.34
Fully diluted:
Average shares outstanding 5,903,166 5,765,679
Net effect of dilutive stock
options -- based on the treasury
stock method using quarter end
market price or average market
price whichever is greater 357,860 314,439
Totals 6,261,026 6,080,118
Net income $2,171 $2,051
Per share amount $0.35 $0.34
</TABLE>
