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: March 31, 1995
______________
Commission File Number 1-11684
______________
NEW YORK BANCORP INC.
________________________________________________________________________________
(Exact name of registrant as specified in its charter)
Delaware 11-2869250
________________________________________________________________________________
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
241-02 Northern Boulevard, Douglaston, N. Y. 11362
________________________________________________________________________________
(Address of principal executive offices) (Zip Code)
(718) 631-8100
________________________________________________________________________________
(Registrant's telephone number, including area code)
Not Applicable
________________________________________________________________________________
(Former name, former address and former fiscal year,
if changed since last report)
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 (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.
Yes X No
______ ______
Number of shares of common stock, par value $.01 per share, outstanding as
of May 4, 1995: 13,416,775.
<PAGE>
NEW YORK BANCORP INC.
FORM 10-Q
INDEX
PART I - FINANCIAL INFORMATION Page
______________________________ ____
Item 1. Financial Statements:
Consolidated Statements of Financial Condition as
of March 31, 1995 and September 30, 1994 4
Consolidated Statements of Operations for the Three
and Six Months ended March 31, 1995 and 1994 5
Consolidated Statement of Changes in Shareholders'
Equity for the Six Months ended March 31, 1995 6
Consolidated Statements of Cash Flows for the
Six Months ended March 31, 1995 and 1994 7 - 8
Notes to Consolidated Financial Statements 9 - 13
Independent Auditors' Review Report 3
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 14 - 28
PART II - OTHER INFORMATION
___________________________
Item 1. Legal Proceedings 29
Item 2. Changes in Securities 29
Item 3. Defaults Upon Senior Securities 29
Item 4. Submission of Matters to a Vote of Security Holder 29
Item 5. Other Information 29
Item 6. Exhibits and Reports on Form 8-K 30 - 31
Signature Page 32
2
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KPMG Peat Marwick LLP
345 Park Avenue
New York, NY 10154
Independent Auditors' Review Report
___________________________________
To the Board of Directors of New York Bancorp Inc.:
We have reviewed the condensed consolidated financial statements of New York
Bancorp Inc. and Subsidiary as of March 31, 1995, and for the three-and
six-month periods ended March 31, 1995 and 1994 as listed in the accompanying
index. These condensed consolidated financial statements are the responsibility
of the Company's management.
We conducted our review in accordance with standards established by the American
Institute of Certified Public Accountants. A review of interim financial
information consists principally of applying analytical procedures to financial
data and making inquiries of personnel responsible for financial and accounting
matters. It is substantially less in scope than an audit conducted in accordance
with generally accepted auditing standards, the objective of which is the
expression of an opinion regarding the financial statements taken as a whole.
Accordingly, we do not express such an opinion.
Based on our review, we are not aware of any material modifications that should
be made to the condensed consolidated financial statements referred to above for
them to be in conformity with generally accepted accounting principles.
KPMG Peat Marwick LLP
April 25, 1995
3
<PAGE>
<TABLE>
<CAPTION>
NEW YORK BANCORP INC. AND SUBSIDIARY
----- CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION -----
(Dollars in Thousands, Except Per Share Data)
(Unaudited)
March 31, September 30,
1995 1994(1)
ASSETS ----------- --------------
<S> <C> <C>
Cash and due from banks ........................................................... $ 21,556 $ 22,231
Money market investments .......................................................... 16,221 21,844
Trading account securities ........................................................ 13,294 12,939
Investment securities held to maturity (estimated market
value of $44,183 and $51,390 at March 31, 1995
and September 30, 1994, respectively) ............................................ 45,445 52,984
Investment securities available for sale .......................................... 1,910 180
Federal Home Loan Bank stock ...................................................... 17,950 17,409
Mortgage-backed securities held to maturity (estimated
market value of $637,156 and $730,500 at March 31,
1995 and September 30, 1994, respectively) ....................................... 693,094 785,593
Mortgage-backed securities available for sale ..................................... 214,441 171,983
Loans receivable, net:
First mortgage loans ........................................................... 1,262,114 1,158,494
Other loans .................................................................... 305,942 299,565
------------ ------------
1,568,056 1,458,059
Less allowance for possible loan losses ........................................ (25,579) (25,705)
------------ ------------
Total loans receivable, net .................................................. 1,542,477 1,432,354
Accrued interest receivable ....................................................... 20,014 19,104
Premises and equipment, net ....................................................... 14,294 14,804
Other assets ...................................................................... 39,359 34,767
------------ ------------
Total assets ................................................................. $ 2,640,055 $ 2,586,192
============ ============
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Deposits ....................................................................... $ 1,744,409 $ 1,791,492
Borrowed funds ................................................................. 672,593 581,106
Mortgagors' escrow payments .................................................... 16,711 15,247
Accrued expenses and other liabilities ......................................... 36,012 27,056
------------ ------------
Total liabilities ............................................................ 2,469,725 2,414,901
------------ ------------
Commitments, contingencies and contracts (note 3)
Shareholders' equity (notes 2 and 3):
Preferred stock, $.01 par value, 2,000,000 shares
authorized; none issued ....................................................... -- --
Common stock, $.01 par value, 30,000,000 shares authorized;
14,746,876 and 14,756,005 shares issued; 13,523,935 and
13,223,698 shares outstanding at March 31, 1995
and September 30, 1994, respectively .......................................... 147 147
Additional paid-in capital ..................................................... 62,450 61,802
Retained earnings, substantially restricted .................................... 117,262 126,538
Treasury stock, at cost, 1,222,941 and 1,532,307 shares at
March 31, 1995 and September 30, 1994, respectively ........................... (6,282) (9,995)
Employee stock ownership plan .................................................. -- (2,174)
Recognition and retention plan ................................................. -- (1,130)
Unrealized depreciation on securities
available for sale, net of tax effect ......................................... (3,247) (3,897)
------------ ------------
Total shareholders' equity ................................................... 170,330 171,291
------------ ------------
Total liabilities and shareholders' equity ................................... $ 2,640,055 $ 2,586,192
============ ============
______________
(1) Restated to reflect the merger with Hamilton Bancorp, which was accounted for as a pooling of interests.
See accompanying notes to consolidated financial statements.
</TABLE>
4
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<TABLE>
<CAPTION>
NEW YORK BANCORP INC. AND SUBSIDIARY
----- CONSOLIDATED STATEMENTS OF OPERATIONS -----
(Unaudited)
Three Months Ended Six Months Ended
March 31, March 31,
------------------ ---------
1995 1994(1) 1995 1994(1)
------- ------- ------- -------
(In Thousands, except per share amounts)
Interest income:
<S> <C> <C> <C> <C>
Interest and fees on loans:
First mortgage loans .................................... $ 25,525 $ 22,170 $ 49,471 $ 44,889
Other loans ............................................. 6,393 5,919 12,639 12,083
-------- -------- -------- --------
Total interest and fees on loans ........................ 31,918 28,089 62,110 56,972
Money market investments ................................. 302 651 560 1,427
Trading account securities ............................... 193 96 355 187
Investment securities - taxable .......................... 1,188 452 2,403 999
Mortgage-backed securities ............................... 15,389 12,721 30,987 22,512
-------- -------- -------- --------
Total interest income ................................... 48,990 42,009 96,415 82,097
-------- -------- -------- --------
Interest expense:
Deposits ................................................. 15,395 14,045 30,384 27,763
Borrowed funds ........................................... 9,465 5,486 17,286 10,284
-------- -------- -------- --------
Total interest expense .................................. 24,860 19,531 47,670 38,047
-------- -------- -------- --------
Net interest income ..................................... 24,130 22,478 48,745 44,050
Provision for possible loan losses ......................... (400) (800) (900) (1,600)
-------- -------- -------- --------
Net interest income after provision
for possible loan losses ............................... 23,730 21,678 47,845 42,450
-------- -------- ------- --------
Other operating income:
Loan fees and service charges ............................ 946 1,079 1,997 2,124
Net gain (loss) on sales of mortgage loans
and securities available for sale ....................... (1,177) 469 (1,516) 637
Real estate operations, net .............................. (345) (77) (719) (100)
Other .................................................... 922 863 1,751 1,767
-------- -------- -------- --------
Total other operating income ............................ 346 2,334 1,513 4,428
-------- -------- -------- --------
Other operating expenses:
Compensation and benefits ................................ 5,905 5,799 12,183 11,773
Occupancy, net ........................................... 2,209 2,141 4,247 4,160
Advertising and promotion ................................ 686 719 1,431 1,262
Federal deposit insurance premiums ....................... 1,208 1,205 2,349 2,392
Restructuring and merger ................................. 19,024 -- 19,024 --
Other .................................................... 2,850 2,728 5,505 5,385
-------- -------- -------- --------
Total other operating expenses .......................... 31,882 12,592 44,739 24,972
-------- -------- -------- --------
Income (loss) before income tax expense
and cumulative effect of change
in accounting principle ................................ (7,806) 11,420 4,619 21,906
-------- -------- -------- --------
Income tax expense:
Federal expense .......................................... 1,454 3,364 5,383 6,206
State and local expense .................................. 544 1,610 2,573 3,195
-------- -------- -------- --------
Total income tax expense ................................ 1,998 4,974 7,956 9,401
-------- -------- -------- --------
Income (loss) before cumulative effect of
change in accounting principle ......................... (9,804) 6,446 (3,337) 12,505
Cumulative effect of change in accounting
for income taxes .......................................... -- -- -- 5,685
-------- -------- -------- --------
Net income (loss) ....................................... $ (9,804) $ 6,446 $ (3,337) $ 18,190
======== ======== ======== ========
Earnings (loss) per common share (2):
Income (loss) before cumulative effect of
change in accounting principle .......................... $ (.73) $ .47 $ (.25) $ .91
Cumulative effect of change in
accounting for income taxes ............................. $ .-- $ .-- $ .-- $ .42
Net income (loss) ........................................ $ (.73) $ .47 $ (.25) $ 1.33
____________
(1) Restated to reflect the merger with Hamilton Bancorp, which was accounted for as a pooling of interests.
(2) Earnings (loss) per common share have been calculated to fully reflect the ten percent stock dividend effective
February 14, 1994.
See accompanying notes to consolidated financial statements.
</TABLE>
5
<PAGE>
<TABLE>
<CAPTION>
NEW YORK BANCORP INC. AND SUBSIDIARY
----- CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY -----
Six Months Ended March 31, 1995
(Unaudited)
Unrealized
Common Common Depreciation
Additional Stock Stock on Securities
Common Paid-in Retained Treasury Acquired Acquired Available
Stock Capital Earnings Stock by ESOP by RRP for Sale Total
-------- ---------- ---------- --------- --------- --------- ------------- ---------
(Dollars in Thousands, Except Per Share Data)
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Balance at September 30, 1994 (1)......... $ 147 $ 61,802 $ 126,538 $ (9,995) $ (2,174) $ (1,130) $ (3,897) $ 171,291
Net income for the six months
ended March 31, 1995..................... -- -- (3,337) -- -- -- -- (3,337)
Dividends declared on common stock........ -- -- (4,159) -- -- -- -- (4,159)
Exercise of 338,256 shares of stock
options.................................. 3 (116) -- 612 -- -- -- 499
Purchase of 20,873 shares of treasury
stock.................................... -- -- -- (394) -- -- -- (394)
Net proceeds from sale of 298,375
shares of treasury stock................. -- 1,035 -- 3,495 -- -- -- 4,530
Sale of ESOP shares to repay plan
borrowings............................... -- 1,360 -- -- 827 -- -- 2,187
Allocation of ESOP shares to plan
participants............................. -- 2,666 -- -- 1,347 -- -- 4,013
Retirement of 16,212 unallocated
RRP shares............................... -- (67) -- -- -- 67 -- --
Allocation of 258,284 RRP shares to
plan participants........................ -- -- -- -- -- 1,063 -- 1,063
Withheld and retired 299,179 shares for
stock options and RRP participants'
taxes due upon issuance.................. (3) (5,644) -- -- -- -- -- (5,647)
Cash paid in lieu of shares, attributed
to RRP................................... -- (2) -- -- -- -- -- (2)
Hamilton Bancorp's net income for the
three months ended December 31, 1994..... -- -- (1,780) -- -- -- -- (1,780)
Tax benefit of appreciation of
RRP shares allocated..................... -- 1,416 -- -- -- -- -- 1,416
Change in unrealized depreciation
on securities available for sale......... -- -- -- -- --- -- 650 650
------ --------- ---------- -------- -------- --------- -------- -----------
Balance at March 31, 1995................. $ 147 $ 62,450 $ 117,262 $ (6,282) $ -- $ -- $ (3,247) $ 170,330
====== ========= ========== ======== ======== ========= ======== ===========
______________
(1) Restated to reflect the merger with Hamilton Bancorp, which was accounted for as a pooling of interests.
See accompanying notes to consolidated financial statements.
</TABLE>
6
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<TABLE>
<CAPTION>
NEW YORK BANCORP INC. AND SUBSIDIARY
----- CONSOLIDATED STATEMENTS OF CASH FLOWS -----
(UNAUDITED)
Six Months Ended
March 31,
---------------------------
1995 1994(1)
------------ ------------
(In Thousands)
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Interest received .............................................................. $ 96,384 $ 84,707
Fees and other income received ................................................. 3,301 4,592
Interest paid .................................................................. (46,118) (37,917)
General and administrative expenses ............................................ (34,240) (20,599)
Income taxes paid .............................................................. (9,008) (10,009)
----------- -----------
Net cash provided by operating activities .................................... 10,319 20,774
----------- -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Principal payments on first mortgage loans ..................................... 64,120 87,715
Principal payments on other loans .............................................. 27,496 32,861
Principal payments on mortgage-backed
securities held to maturity ................................................... 27,876 103,199
Principal payments on mortgage-backed
securities available for sale ................................................. 11,237 71,229
Proceeds on sales of first mortgage loans ...................................... 19,014 76,117
Proceeds on sales of mortgage-backed securities
available for sale ............................................................ 65,779 26,016
Proceeds on redemptions of investment
securities available for sale ................................................. 6,500 7,690
Proceeds on sales of investment securities
available for sale ............................................................ 9,943 1,502
Proceeds on sales of real estate owned ......................................... 3,313 2,475
Investment in first mortgage loans ............................................. (197,845) (173,779)
Investment in other loans ...................................................... (39,314) (19,396)
Investment in mortgage-backed securities held to maturity ...................... -- (426,750)
Investment in mortgage-backed securities
available for sale ............................................................ (45,789) (31,159)
Purchase of investment securities held to maturity ............................. -- (15,985)
Purchase of investment securities available for sale ........................... (11,322) --
Other, net ..................................................................... (2,655) 1,301
----------- -----------
Net cash used by investing activities ........................................ (61,647) (256,964)
----------- -----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from increase in deposit accounts ..................................... 1,499,053 1,263,535
Payments for withdrawal of deposit accounts .................................... (1,538,522) (1,218,954)
Proceeds from borrowed funds ................................................... 3,895,747 423,409
Repayment of borrowed funds .................................................... (3,799,159) (245,100)
Proceeds from sale of treasury stock ........................................... 4,530 --
Cash in lieu of fractional shares .............................................. (2) --
Purchases of treasury stock .................................................... (6,041) (6,227)
Payment of common stock dividends .............................................. (4,159) (2,796)
Exercise of stock options ...................................................... 499 21
----------- -----------
Net cash provided (used) by financing activities ............................. 51,946 213,888
----------- -----------
Net increase (decrease) in cash and cash equivalents .............................. 618 (22,302)
Cash and cash equivalents at beginning of period .................................. 44,075 100,218
Hamilton Bancorp activity for the three months
ended December 31, 1994 .......................................................... (6,916) --
----------- -----------
Cash and cash equivalents at end of period ........................................ $ 37,777 $ 77,916
=========== ===========
</TABLE>
(Continued)
7
<PAGE>
<TABLE>
<CAPTION>
NEW YORK BANCORP INC. AND SUBSIDIARY
----- CONSOLIDATED STATEMENTS OF CASH FLOWS -----
(Continued)
Six Months Ended
March 31,
---------------------
1995 1994(1)
---------- ---------
(In Thousands)
<S> <C> <C>
RECONCILIATION OF NET INCOME (LOSS) TO NET CASH
PROVIDED BY OPERATING ACTIVITIES:
Income (loss) before cumulative effect of change
in accounting principle .......................................................... $ (3,337) $ 12,505
Cumulative effect of change in accounting for income taxes ........................ -- 5,685
--------- ---------
Net income (loss) ................................................................. (3,337) 18,190
--------- ---------
ADJUSTMENTS TO RECONCILE NET INCOME TO NET CASH
PROVIDED BY OPERATING ACTIVITIES:
Increase in accrued interest receivable ........................................ (870) (187)
Decrease in accrued fees and
other income receivable ....................................................... 1,214 4,205
(Increase) decrease in prepaid expenses ........................................ 149 (69)
Increase in accrued interest payable ........................................... 1,552 315
Increase in accrued income taxes payable ....................................... 1,281 4,510
Increase in deferred income tax assets ......................................... (1,804) (10,955)
Increase in accrued expenses ................................................... 6,531 2,096
Provision for possible loan losses ............................................. 900 1,600
Net (gain) loss on the sale of mortgage loans and
securities available for sale ................................................. 1,516 (637)
Termination of ESOP and RRP .................................................... 5,089 --
Other, net ..................................................................... (1,902) 1,706
--------- ---------
Total adjustments ............................................................ 13,656 2,584
--------- ---------
Net cash provided by operating activities .................................... $ 10,319 $ 20,774
========= =========
SUPPLEMENTAL SCHEDULE OF NONCASH INVESTING
AND FINANCING ACTIVITIES:
Transfer of loans to real estate owned ......................................... $ 2,309 $ 2,236
========= =========
Transfer of mortgage-backed securities held to maturity
to mortgage-backed securities available for sale (note 2) ..................... $ 69,817 $ 149,559
========= =========
Transfer of investment securities held to maturity
to investment securities available for sale ................................... $ 7,465 $ 9,848
========= =========
Securitization and transfer of loans to
mortgage-backed securities available for sale ................................. $ -- $ 18,817
========= =========
______________
(1) Restated to reflect the merger with Hamilton Bancorp, which was accounted for as a pooling of interests.
See accompanying notes to consolidated financial statements.
</TABLE>
8
<PAGE>
NEW YORK BANCORP INC. AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
NOTE 1: BASIS OF PRESENTATION
The accompanying unaudited consolidated financial statements
include the accounts of New York Bancorp Inc. ("New York Bancorp"
or the "Company") and its wholly-owned subsidiary, Home Federal
Savings Bank ("Home Federal" or the "Savings Bank") and
Subsidiaries, as of March 31, 1995 and September 30, 1994 and for
the three and six month periods ended March 31, 1995 and 1994.
On January 27, 1995, Hamilton Bancorp, Inc. ("Hamilton Bancorp")
was merged with and into New York Bancorp (the "Merger") (see note
2). The Merger was accounted for as a pooling of interests, and, as
a result, the Company's consolidated financial statements have been
retroactively restated for all reporting periods to include the
consolidated amounts of Hamilton Bancorp. In connection with the
Merger Hamilton Bancorp's principal subsidiary, Hamilton Federal
Savings Bank, was merged with Home Federal.
The accompanying unaudited 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
necessary adjustments consisting only of normal recurring accruals
necessary for a fair presentation have been included. The results
of operations for the three and six month periods ended March 31,
1995 are not necessarily indicative of the results that may be
expected for the entire fiscal year.
NOTE 2: MERGER WITH HAMILTON BANCORP, INC.
On January 27, 1995, New York Bancorp completed its Merger
with Hamilton Bancorp in a transaction accounted for under the
pooling of interests method of accounting. Pursuant to the Merger,
New York Bancorp issued 1.705 shares of common stock for each
outstanding share of Hamilton Bancorp common stock and reserved for
issuance 182,824 shares of common stock for Hamilton Bancorp's
stock options outstanding as of the Merger consummation date. In
addition, 109,749 shares of common stock were issued to holders of
Hamilton Bancorp stock options who received stock for options in
accordance with the merger agreement. As a result of the above,
6,224,921 shares of common stock were issued in connection with the
Merger.
9
<PAGE>
The Company reports its financial results on a fiscal year basis
ending September 30, whereas Hamilton Bancorp had reported its
financial results on a calendar year basis. The consolidated
financial statements for the current year have been adjusted to
conform Hamilton Bancorp's year-end with that of the Company. In
addition, the accompanying Consolidated Statement of Financial
Condition as of September 30, 1994 has been restated to include the
financial position of Hamilton Bancorp as of December 31, 1994 and
the accompanying Consolidated Statements of Operations and Cash
Flows for the three and six months ended March 31, 1994 have been
restated to include the operations of Hamilton Bancorp for the
three and six months ended June 30, 1994, respectively. Total
interest income of $14.6 million and total other operating income
of $.3 million relating to the three month period ended December
31, 1994 have been included in the results of operations for the
three and six month periods ended March 31, 1995 and are also
included in the results of operations for fiscal year 1994. The
effect on the accompanying consolidated financial statements
arising from the inclusion of the $1,780,000 of net income of
Hamilton Bancorp for the three months ended December 31, 1994 in
the Company's results of operations for both fiscal year 1994 and
the six month period ended March 31, 1995 is presented in the
accompanying Consolidated Statement of Shareholders' Equity as an
adjustment for change in fiscal year of Hamilton Bancorp.
In accordance with the pooling of interests method of accounting,
the Company's financial statements have been restated for all
periods presented to include the reported results of Hamilton
Bancorp. Operating results for the Company and Hamilton Bancorp for
the three months ended December 31, 1994, the three months ended
March 31, 1994, and the six months ended March 31, 1994, prior to
restatement, are presented below:
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
-------------------------------
Dec. 31, 1994 Mar. 31, 1994 Mar. 31, 1994
-------------- ------------- -------------
(In Thousands)
<S> <C> <C>
Net interest income after provision
for loan losses:
New York Bancorp........................ $ 16,210 $ 13,985 $ 27,279
Hamilton Bancorp........................ 7,905 7,693 15,171
----------- ------------ ------------
$ 24,115 $ 21,678 $ 42,450
=========== ============ ============
Net income before cumulative effect
of a change in accounting principle:
New York Bancorp........................ $ 4,687 $ 3,832 $ 7,440
Hamilton Bancorp........................ 1,780 2,614 5,065
----------- ------------ ------------
$ 6,467 $ 6,446 $ 12,505
=========== ============ ============
Cumulative effect of a change
in accounting principle:
New York Bancorp........................ $ -- $ -- $ 5,685
Hamilton Bancorp........................ -- -- --
-- -- --
$ -- $ -- $ 5,685
=========== ============= ============
Net income:
New York Bancorp........................ $ 4,687 $ 3,832 $ 13,125
Hamilton Bancorp........................ 1,780 2,614 5,065
----------- ------------- ------------
$ 6,467 $ 6,446 $ 18,190
=========== ============= ============
</TABLE>
10
<PAGE>
New York Bancorp's investment in Hamilton Bancorp was eliminated in
the accompanying Consolidated Statement of Financial Condition as
of September 30, 1994, which resulted in a $4.2 million reduction
of the combined shareholders' equity. The following provides the
effect of combining New York Bancorp's shareholders' equity as of
September 30, 1994 with that of Hamilton Bancorp as of December 31,
1994:
<TABLE>
<CAPTION>
Shareholders'
Equity
--------------
(In Thousands)
<S> <C>
New York Bancorp............................................................ $ 91,376
Hamilton Bancorp............................................................ 84,129
Elimination of intercorporate investment.................................... (4,214)
------------
$ 171,291
============
</TABLE>
The following is a summary of Hamilton Bancorp's cash flows for the three months
ended December 31, 1994 (in thousands):
<TABLE>
<CAPTION>
<S> <C>
Net cash provided by operating activities................................... $ 704
Net cash used by investing activities....................................... (4,412)
Net cash provided by financing activities................................... 10,624
------------
Net increase in cash and cash equivalents................................... $ 6,916
============
</TABLE>
In connection with the Merger, the Company recorded certain
non-recurring merger- related and restructuring expenses of
approximately $16.1 million, on an after-tax basis, and a net loss
resulting from the restructuring and subsequent sale of a portion
of Hamilton Bancorp's securities portfolio which amounted to $.7
million, on an after-tax basis. The non-recurring merger-related
and restructuring charges reflected $4.3 million in investment
banking, legal and accounting fees, $5.1 million in severance
costs, $4.7 million related to the termination of Hamilton
Bancorp's ESOP and the accelerated vesting of shares of the RRP
pursuant to the requirements of such plans upon a change in
control, and $2.0 million in certain back-office and facilities
consolidation costs and signage costs. The restructuring and
subsequent sale of a portion of Hamilton Bancorp's securities
portfolio primarily reflects the effect of management's decision to
reclassify $77.3 million of the acquired investment securities and
mortgage-backed securities from the held to maturity portfolios to
the available for sale portfolios, whereby $66.8 million of these
securities were sold in February 1995.
11
<PAGE>
The following table summarizes the activity with respect to the
merger-related and restructuring expenses, on a pre-tax basis, for
the current fiscal year.
<TABLE>
<CAPTION>
Restructuring
Accrual
(In Thousands)
<S> <C>
Balance at December 31, 1994................................................ $ --
Provision charged against operations........................................ 19,024
Cash outlays................................................................ (10,745)
Noncash items............................................................... (5,143)
------------
Balance at March 31, 1995................................................... $ 3,136
============
</TABLE>
The noncash items relate to the termination of Hamilton Bancorp's
ESOP and the accelerated vesting of shares of the RRP. There was no
merger-related and restructuring expenses recorded in the prior
year period.
NOTE 3: COMMITMENTS, CONTINGENCIES AND CONTRACTS
At March 31, 1995, Home Federal had commitments of $62.7 million to
originate first mortgage and cooperative residential loans. Of this
amount, adjustable rate mortgage loans represented $58.8 million
and fixed rate mortgage loans with interest rates ranging from
7.625% to 11.00%, represented $3.9 million.
The Savings Bank is a party to interest rate swap arrangements to
extend the repricing or maturity of its liabilities in order to
create a more consistent and predictable interest rate spread. At
March 31, 1995, outstanding notional amounts of interest rate swap
arrangements totaled $205.0 million.
Additionally, in accordance with its asset/liability management
strategy, Home Federal is a party to $1.0 billion of interest rate
floor agreements which expire on February 22, 1998. Under $500
million of these agreements, the Savings Bank will be paid if three
month libor falls below 5.50%, and for the remaining $500 million
of these agreements, the Savings Bank will be paid if three month
libor falls below 6.00%. At March 31, 1995, three month libor was
6.25%.
At March 31, 1995, the Savings Bank was servicing first mortgage
loans of approximately $518.1 million, which are either partially
or wholly-owned by others.
NOTE 4: STOCK REPURCHASE PLAN
During the quarter ended March 31, 1995, New York Bancorp did not
repurchase any additional shares under its present stock repurchase
plan. At March 31, 1995, the total number of Treasury shares
amounted to 1,222,941. The Company has regulatory authority to
repurchase up to an additional 335,856 shares. Repurchases may be
made from time to time in open market transactions, subject to
availability of shares at prices deemed appropriate by New York
Bancorp.
12
<PAGE>
NOTE 5: RECENT ACCOUNTING PRONOUNCEMENTS
In May 1993, the FASB issued Statement of Financial Accounting
Standards No. 114, "Accounting by Creditors for Impairment of a
Loan" ("SFAS No. 114"). In October 1994, the FASB issued Statement
of Financial Accounting Standards No. 118 "Accounting by Creditors
for Impairment of a Loan -- Income Recognition and Disclosures"
("SFAS No. 118") which amended SFAS No. 114 (collectively the
"Statements"). Both Statements are effective for financial
statements issued for fiscal years beginning after December 15,
1994. These Statements address the accounting by creditors for
impairment of certain loans which, among other things, include all
loans that are restructured in a troubled debt restructuring
involving a modification of terms. They require that impaired loans
that are within the scope of these Statements be measured based on
the present value of expected future cash flows discounted at the
loan's effective interest rate or, as a practical expedient, at the
loan's observable market price or the fair value of the collateral
if the loan is collateral dependent. Based upon a preliminary
review of these Statements, management does not believe that the
adoption of SFAS No. 114 and SFAS No. 118 on a prospective basis
will have a materially adverse effect on the Company.
In March 1995, the FASB issued Statement of Financial Accounting
Standards No. 121, "Accounting for the Impairment of Long-Lived
Assets and for Long-Lived Assets To Be Disposed Of"" (SFAS No.
121"). The Statement is effective for financial statements issued
for fiscal years beginning after December 15, 1995. The Statement
establishes accounting standards for, among other things, the
impairment of long-lived assets. The Statement requires that
long-lived assets be reviewed for impairment whenever events or
changes in circumstances indicate that the carrying amount of an
asset may not be recoverable. Based upon a preliminary review of
the Statement, management does not believe that the adoption of
SFAS No. 121 would have a materially adverse effect on the Company.
13
<PAGE>
NEW YORK BANCORP INC. AND SUBSIDIARY
MANAGEMENT'S DISCUSSION AND
ANALYSIS OF FINANCIAL POSITION
AND RESULTS OF OPERATIONS
A. GENERAL
New York Bancorp Inc. ("New York Bancorp" or the "Company") is the
holding company for Home Federal Savings Bank ("Home Federal" or the
"Savings Bank"), a federally chartered stock savings bank. New York
Bancorp's business currently consists of the business of the Savings Bank.
The Savings Bank's principal business consists of attracting deposits from
the general public and investing these deposits, together with funds from
ongoing operations and borrowings, in the origination and purchase of
residential and commercial mortgage loans, cooperative residential loans and
consumer loans. The Savings Bank maintains a portion of its assets in
investment securities, including obligations of the U. S. Government and
federal agencies, money market investments, corporate notes and other
securities.
B. MERGER WITH HAMILTON BANCORP, INC.
On January 27, 1995, New York Bancorp completed its merger (the
"Merger") with Hamilton Bancorp, Inc. ("Hamilton Bancorp"). Pursuant to the
Merger, each outstanding share of Hamilton Bancorp Common Stock was
converted into the right to receive 1.705 shares of New York Bancorp Common
Stock. This transaction has been accounted for as a pooling of interests,
and, as a result, the financial results for the current and prior periods
reported in the accompanying management's discussion and analysis include
the results of Hamilton Bancorp. The Company reports its financial results
on a fiscal year ending September 30, whereas Hamilton Bancorp had reported
its financial results on a calendar year basis. The consolidated financial
statements for the current year have been adjusted to conform Hamilton
Bancorp's year-end with that of the Company. (See note 2 to Consolidated
Financial Statements - Merger with Hamilton Bancorp, Inc.)
At March 31, 1995, the acquisition of Hamilton Bancorp had the
effect of increasing the Company's asset size to $2.6 billion and
shareholders' equity to $170.3 million with the issuance of 6.2 million
shares of common stock in connection with the transaction and the combined
operating results. The discussion that follows describes the consolidated
results of operations and financial condition of the Company, which includes
Hamilton Bancorp for all periods.
14
<PAGE>
C. FINANCIAL POSITION
Total assets at March 31, 1995 amounted to $2.6 billion, an
increase of $53.9 million from that reported at September 30, 1994. Total
assets include a $110.0 million increase in loans receivable, partially
offset by a $50.0 million decrease in mortgage-backed securities held to
maturity and mortgage-backed securities available for sale. The decrease in
mortgage-backed securities primarily reflects the effect of management's
decision to reclassify $77.3 million of the acquired investment securities
and mortgage-backed securities from the held to maturity portfolios to the
available for sale portfolios, whereby $66.8 million of these securities
were sold in February 1995, resulting in a loss of $.7 million, on an
after-tax basis. Such securities were reclassified in order to make the
acquired portfolio's risk profile more consistent with the Company's.
Total deposits at March 31, 1995 amounted to $1.7 billion, a
decrease of $47.1 million, or 2.6%, reflecting competitive pressures in the
marketplace as a result of a comparatively higher interest rate environment.
The increase in total assets and decrease in deposits were primarily funded
through the Savings Bank's $91.5 million increase in borrowed funds.
D. ASSET/LIABILITY MANAGEMENT
Home Federal is subject to interest rate risk to the extent that
its interest-bearing liabilities reprice or mature more or less frequently,
or on a different basis, than its interest-earning assets. Home Federal's
primary approach to controlling interest rate risk and maximizing net
interest margin emphasizes gap management. The Savings Bank does not have a
mandated targeted one year gap, but historically has managed the gap so that
it will range from a modest positive to a modest negative position, which
would generally result in upper-end ranges of positive to negative positions
of 15%. The size and direction of the gap is determined by management,
reflecting its views on the direction of interest rates and general market
conditions. The Savings Bank's cumulative one year gap as a percent of total
interest-earning assets amounted to a negative 8.8% at March 31, 1995.
A negative gap denotes liability sensitivity which in a given
period will result in more liabilities than assets being subject to
repricing. Generally, liability sensitive gaps would result in a net
positive effect on net interest margin in a declining interest rate
environment. Alternatively, liability sensitive gaps would generally result
in a net negative effect on net interest margin in an increasing interest
rate environment. Assets and liabilities with similar repricing
characteristics, however, may not reprice to the same degree. As a result,
the Company's gap position does not necessarily predict the impact of
changes in general levels of interest rates on net interest margin. With
respect to the Company, the net interest margin increased to 3.74% in the
second quarter of fiscal year 1995 when compared to 3.70% for the comparable
period in 1994. However, net interest margin for the second quarter of
fiscal year 1995 declined when compared to 3.91% earned in the first fiscal
quarter of 1995.
15
<PAGE>
At March 31, 1995, the Savings Bank's interest-earning assets
principally consisted of adjustable rate mortgage and other loans and
securities, multi-tranched fixed rate REMIC securities and an assortment of
fixed rate mortgage and other loans. At March 31, 1995, 47.2% of such
interest-earning assets were adjustable rate assets. Within the framework of
the targeted one year gap, the Savings Bank may choose to extend the
maturity of its funding source and/or reduce the repricing mismatches by
using interest rate swaps and financial futures arrangements. Additionally,
the Savings Bank uses interest rate caps and interest rate floor
arrangements to assist in further insulating the Savings Bank from volatile
interest rate changes.
In connection with its asset/liability management strategy, at
March 31, 1995, included in the Company's interest-bearing liabilities were
$50.0 million of borrowed funds consisting of capped variable rate
repurchase agreements. Such agreements have imbedded interest rate caps
ranging from 3.92% to 4.18% and mature between April 1995 and May 1995.
Additionally, in connection with its asset/liability management strategy, at
March 31, 1995 Home Federal maintained interest rate swap arrangements with
a notional amount of $205.0 million. For $140.0 million of the $205.0
million of interest rate swap arrangements, the Savings Bank receives a
variable rate (which is matched against the related variable rate borrowing)
and pays a fixed rate, thus locking in a spread on fixed rate mortgage loans
or fixed rate mortgage-backed securities during the term of the swap. Such
swaps have maturities ranging from January 1996 to May 1996. For the
remaining $65.0 million of interest rate swaps, the Savings Bank is
receiving a fixed rate of 5.80% and pays a variable rate based on Federal
Funds (6.30% on March 31, 1995). This interest rate swap effectively unwound
$65.0 million (of the aforementioned $140.0 million in interest rate swaps)
where the Savings Bank was receiving a variable rate based on Federal funds
(6.30% at March 31, 1995) and paying a fixed rate of 4.04%.
The term of such swaps extends through January 1996.
Additionally, in an effort to further protect the Savings Bank
against interest rate risk associated with the repricing of its
interest-bearing deposit liabilities, Home Federal is a party to $1.0
billion of interest rate floor agreements which expire on February 22, 1998.
Under $500 million of these agreements, the Savings Bank will be paid if
three month libor falls below 5.50%, and for the remaining $500 million of
these agreements, the Savings Bank will be paid if three month libor falls
below 6.00%. At March 31, 1995, three month libor was 6.25%.
At March 31, 1995 the Company had approximately $2.6 million in
contracts for purposes of hedging the "Standard & Poor's 500" index. The
call options maturities range from March 1999 through October 1999. The
Savings Bank uses stock indexed call options for purposes of hedging its
MarketSmart CD's and MarketSmart I.R.A. CD's.
16
<PAGE>
E. LIQUIDITY AND CAPITAL RESOURCES
Home Federal is required to maintain minimum levels of liquid
assets as defined by the OTS regulations. This requirement, which may be
varied by the OTS, is based upon a percentage of withdrawable deposits and
short-term borrowings. The required ratio is currently 5%. The Savings
Bank's ratio was 5.02% during March 1995 and 5.40% during September 1994.
The Savings Bank's liquidity levels will vary depending upon
savings flows, future loan fundings, operating needs and general prevailing
economic conditions. Because of the multitude of available funding sources,
the Savings Bank does not foresee any problems in generating liquidity to
meet its operational and regulatory requirements.
The Savings Bank's lending and investment activities are
predominately funded by deposits, Federal Home Loan Bank of New York
advances, reverse repurchase agreements with primary government securities
dealers, subordinated capital notes, scheduled amortization and prepayments,
and funds provided by operations.
During the quarter ended March 31, 1995, New York Bancorp did not
repurchase any additional shares under its present stock repurchase plan. At
March 31, 1995, the total number of Treasury shares amounted to 1,222,941.
The Company has regulatory authority to repurchase up to an additional
335,856 shares. Repurchases may be made from time to time in open market
transactions, subject to availability of shares at prices deemed appropriate
by New York Bancorp.
As of March 31, 1995, Home Federal continued to exceed all
regulatory capital requirements as detailed in the following table:
<TABLE>
<CAPTION>
TANGIBLE CAPITAL CORE CAPITAL(1) RISK-BASED CAPITAL(2)
Amount Percentage Amount Percentage Amount Percentage
--------- ---------- ----------- ---------- --------- ----------
(Dollars in Thousands)
<S> <C> <C> <C> <C> <C> <C>
Capital for regulatory
purposes..................... $ 145,586 5.53% $ 145,872 5.54% $ 159,699 12.81%
Minimum regulatory
requirement.................. 39,483 1.50 78,975 3.00 99,743 8.00
--------- ----- ---------- ---- --------- -----
Excess........................ $ 106,103 4.03% $ 66,897 2.54% $ 59,956 4.81%
========= ===== ========== ==== ========= ====
_____________
(1) Beginning December 19, 1992, the core capital requirement was effectively increased to 4.00% since OTS
regulations stipulate that as of that date an institution with less than 4.00% core capital will be
deemed to be classified as "undercapitalized."
(2) In August 1993, the OTS adopted a final regulation which incorporates an interest rate risk component
into its existing risk-based capital standard. The regulation requires certain institutions with more
than a "normal level" of interest rate risk to maintain capital in addition to the 8.0% risk-based
capital requirement. The Savings Bank does not anticipate that its risk-based capital requirement will
be materially affected as a result of the new regulation.
(3) For purposes of determining capital for regulatory purposes, unrealized appreciation (depreciation) on
securities available for sale, net of tax effect, is excluded.
(4) For tangible and core capital, the ratio is to adjusted total assets. For risk-based capital, the
ratio is to total risk-weighted assets.
</TABLE>
17
<PAGE>
F. ANALYSIS OF CORE EARNINGS
The Company's profitability is primarily dependent upon net
interest income, which represents the difference between interest and fees
earned on loans, mortgage-backed securities and investments, and the cost of
deposits and borrowings. Net interest income is dependent on the difference
between the average balances and rates earned on interest-earning assets
versus the average balances and rates paid on interest-bearing deposits and
borrowings. Net income is further affected by other operating income, other
operating expenses, taxes, and, in the prior year, the cumulative effect of
a change in accounting principle.
The following tables set forth certain information relating to the
Company's average consolidated statements of financial condition and reflect
the average yield on assets and average cost of liabilities for the periods
indicated. Such yields and costs are derived by dividing income or expense
by the average balance of assets (which include nonaccrual loans) or
liabilities, respectively, for the periods shown.
<TABLE>
<CAPTION>
Quarter Ended March 31,
---------------------------------------------------------------------------
1995 1994(1)
------------------------------------- -----------------------------------
Average Yield/ Average Yield/
Balance Interest Cost Balance Interest Cost
------------- ---------- ------ ------------ ---------- --------
(Dollars in Thousands)
<S> <C> <C> <C> <C> <C> <C>
Assets:
Interest-earning assets:
First mortgage loans.............. $ 1,210,453 $ 25,525 8.44% $ 1,086,862 $ 22,170 8.17%
Other loans....................... 305,825 6,393 8.40 302,894 5,919 7.85
Mortgage-backed securities........ 934,796 15,389 6.58 912,608 12,721 5.58
Money market investments.......... 21,116 302 5.80 71,245 651 3.70
Trading account securities........ 13,198 193 5.95 12,625 96 3.08
Investment securities............. 72,591 1,188 6.57 24,840 452 7.31
------------- --------- ------------- ---------
Total interest-earning assets....... 2,557,979 48,990 7.67 2,411,074 42,009 6.98
--------- ---------
Non-interest-earning assets......... 43,496 53,635
------------- -------------
Total assets...................... $ 2,611,475 $ 2,464,709
============= =============
Liabilities and Shareholders' Equity:
Interest-bearing liabilities:
Deposits.......................... $ 1,755,573 15,395 3.56 $ 1,787,288 14,045 3.19
Borrowed funds.................... 655,497 9,465 5.83 473,167 5,486 4.69
------------- ------ ------------- ------
Total interest-bearing liabilities.. 2,411,070 24,860 4.17 2,260,455 19,531 3.50
------ ------
Other liabilities................... 28,790 39,757
------------- -------------
Total liabilities................. 2,639,860 2,300,212
Shareholders' equity................ 171,615 164,497
------------- -------------
Total liabilities and
shareholders' equity............. $ 2,611,475 $ 2,464,709
============= =============
Net interest income/interest rate
spread............................... $ 24,130 3.50% $ 22,478 3.48%
========= ==== ========= ====
Net earning assets/net
interest margin...................... $ 146,909 3.74% $ 150,619 3.70%
============= ==== ============= ====
Percentage of interest-earning assets
to interest-bearing liabilities...... 106.09% 106.66%
====== ======
____________
(1) Restated to reflect the merger with Hamilton Bancorp, which was accounted for as a pooling of interests.
</TABLE>
18
<PAGE>
<TABLE>
<CAPTION>
Six Months Ended March 31,
--------------------------------------------------------------------------
1995 1994(1)
----------------------------------- -----------------------------------
Average Yield/ Average Yield/
Balance Interest Cost Balance Interest Cost
------------- --------- ------ ------------- ----------- ------
(Dollars in Thousands)
<S> <C> <C> <C> <C> <C> <C>
ASSETS:
Interest-earning assets:
First mortgage loans.............. $ 1,193,367 $ 49,471 8.29% $ 1,087,486 $ 44,889 8.26%
Other loans....................... 303,118 12,639 8.35 306,570 12,083 7.89
Mortgage-backed securities........ 945,766 30,987 6.55 833,232 22,512 5.40
Money market investments.......... 20,258 560 5.54 82,062 1,427 4.19
Trading account securities........ 13,108 355 5.44 12,578 187 2.98
Investment securities............. 73,570 2,403 6.54 24,720 999 8.09
------------- --------- ------------- ---------
Total interest-earning assets....... 2,549,187 96,415 7.57 2,346,648 82,097 7.02
--------- ---------
Non-interest-earning assets......... 41,391 52,688
------------- -------------
Total assets...................... $ 2,590,578 $ 2,399,336
============= =============
LIABILITIES AND SHAREHOLDERS' EQUITY:
Interest-bearing liabilities:
Deposits.......................... $ 1,765,856 30,384 3.45 $ 1,778,229 27,763 3.13
Borrowed funds.................... 620,930 17,286 5.58 418,947 10,284 4.92
------------- ------ ------------- ------
Total interest-bearing liabilities.. 2,386,786 47,670 4.00 2,197,176 38,047 3.47
------ ------
Other liabilities................... 29,715 38,400
------------- -------------
Total liabilities................. 2,416,501 2,235,576
Shareholders' equity................ 174,077 163,760
------------- -------------
Total liabilities and
shareholders' equity............. $ 2,590,578 $ 2,399,336
============= =============
NET INTEREST INCOME/INTEREST RATE
SPREAD............................... $ 48,745 3.57% $ 44,050 3.55%
========= ==== ========= ====
NET EARNING ASSETS/NET
INTEREST MARGIN...................... $ 162,401 3.82% $ 149,472 3.77%
============= ==== ============= ====
PERCENTAGE OF INTEREST-EARNING ASSETS
TO INTEREST-BEARING LIABILITIES...... 106.80% 106.80%
====== ======
______________
(1) Restated to reflect the merger with Hamilton Bancorp, which was accounted for as a pooling of interests.
</TABLE>
19
<PAGE>
G. COMPARISON OF THREE MONTHS ENDED MARCH 31, 1995 AND 1994
General
-------
New York Bancorp incurred a net loss of $9.8 million, or $.73 per
share, for the quarter ended March 31, 1995, compared to net income of $6.4
million, or $.47 per share, for the comparable prior year period. Included
in the results of operations for the quarter ended March 31, 1995 are
certain non-recurring restructuring and merger-related costs which amounted
to approximately $16.1 million, on an after-tax basis, and a net loss
resulting from the restructuring and subsequent sale of a portion of
Hamilton Bancorp's securities portfolio which amounted to $.7 million, on an
after-tax basis. Such sale was transacted in order to reduce the risk
profile of the securities portfolio acquired. Of the $16.1 million in
non-recurring costs, $5.1 million of the expenses relating to the Hamilton
Employee Stock Ownership Plan ("ESOP") and the Recognition and Retention
Plan ("RRP") had no impact on shareholders' equity. Other comments regarding
the components of net income are detailed in the following paragraphs.
Interest Income
---------------
Interest income on interest-earning assets for the quarter ended
March 31, 1995 increased by $7.0 million, or 16.6%, to $49.0 million
compared to $42.0 million for the quarter ended March 31, 1994. The increase
in interest income is primarily attributable to a 69 basis point increase in
yield, coupled with a $146.9 million increase in interest-earning assets.
Interest and fee income on loans for the quarter ended March 31,
1995 increased by $3.8 million, or 13.6%, to $31.9 million compared to $28.1
million for the same quarter in 1994. The increase in loan income reflects a
27 basis point increase in yield on first mortgage loans and a 55 basis
point increase in yield on other loans, coupled with a $126.5 million
increase in the average loan balance to $1,516.3 million. Interest on
mortgage-backed securities held to maturity and mortgage-backed securities
available for sale for the quarter ended March 31, 1995 increased by $2.7
million to $15.4 million as compared to the same quarter in 1994. The
increase in income on mortgage-backed securities held to maturity and
mortgage-backed securities available for sale primarily reflects a $22.2
million increase in the average balance to $934.8 million, coupled with a
100 basis point increase in yield. Money market investment income for the
quarter ended March 31, 1995 decreased by $.3 million to $.3 million. This
decrease reflects a $50.1 million decrease in the average balance of the
portfolio which, however, was partially offset by a 210 basis point increase
in the yield. Interest on trading account securities for the quarter ended
March 31, 1995 increased $.1 million to $.2 million. The increase primarily
reflects a 287 basis point increase in yield on trading account securities
to 5.95%. Interest and dividends on investment securities increased by $.7
million to $1.2 million as compared to $.5 million earned in the prior year.
This increase reflects a $47.8 million increase in the average balance of
the portfolio to $72.6 million, which, however, was partially offset by a 74
basis point decrease in the yield on investment securities to 6.57%,
reflecting the decline in dividends received on Federal Home Loan Bank
stock.
20
<PAGE>
Interest Expense
----------------
Interest expense on interest-bearing liabilities for the quarter
ended March 31, 1995 increased by $5.3 million, or 27.3%, to $24.9 million
compared to the quarter ended March 31, 1994. The increase in interest
expense for the quarter primarily reflects a $150.6 million growth in
interest-bearing liabilities to $2,411.1 million coupled with a 67 basis
point increase in cost on interest-bearing liabilities to 4.17%. The impact
of the Savings Bank's use of interest rate swaps and other off-balance sheet
instruments was to increase interest expense by $21,000 for the quarter
ended March 31, 1995 and increase interest expense by $.6 million for the
quarter ended March 31, 1994.
Interest expense on deposits increased by $1.4 million to $15.4
million for the quarter ended March 31, 1995, compared to the quarter ended
March 31, 1994. This increase reflects a 37 basis point increase in the
average cost of deposits from 3.19% in 1994 to 3.56% in 1995. This increase,
however, was partially offset by a $31.7 million decrease in the average
balance of deposits to $1,755.6 million in 1995. Interest expense on
borrowed funds increased $4.0 million to $9.5 million for the quarter ended
March 31, 1995 as compared to the quarter ended March 31, 1994. This
increase reflects a $182.3 million increase in the average balance of
borrowed funds to $655.5 million, and, a 114 basis point increase in the
average cost of borrowed funds from 4.69% in 1994 to 5.83% in 1995. The
increase in the average cost of borrowed funds reflects the higher interest
rate environment in the current fiscal quarter.
Provision for Possible Loan Losses
----------------------------------
Home Federal provided $.4 million and $.8 million for possible
loan losses during the quarters ended March 31, 1995 and 1994, respectively.
The reduction in the provision for possible loan losses reflects the
improvement in management's assessment for anticipated losses inherent in
the loan portfolios. The Savings Bank's ratio of its allowance for possible
loan losses to total nonaccrual loans amounted to 67.0% and 66.2% at March
31, 1995 and 1994, respectively.
As part of the Savings Bank's determination of the adequacy of the
allowance for loan losses, the Savings Bank monitors its loan portfolio
through its Asset Classification Committee. The Committee, which meets no
less than quarterly, consists of employees who are independent of the loan
origination process. This Committee reviews individual loans with the
lending officers and assesses risks relating to the collectibility of these
loans. The Asset Classification Committee determines the adequacy of the
allowance for possible loan losses through ongoing analysis of historical
loss experience, the composition of the loan portfolios, delinquency levels,
underlying collateral values and cash flow values, geographic
concentrations, and current and prospective economic conditions. Utilizing
these procedures, management believes that the allowance at March 31, 1995
is sufficient to cover anticipated losses inherent in the loan portfolios.
21
<PAGE>
Based on recently released statistical data regarding Nassau and
Suffolk Counties, a portion of the Savings Bank's primary lending areas, the
residential housing market has shown a decrease in values of approximately
6.3% over the twelve month period ended March 31, 1995. However, this
decline has recently slowed to 2.5% in Nassau County and in Suffolk County
residential housing values have recently increased by .7%. Furthermore,
sales of existing homes in Nassau and Suffolk Counties have been increasing
steadily at 12.4% over the past twelve months. Additionally, employment has
been rising and unemployment has been declining over the past twelve months.
In Manhattan, another primary lending area for the Savings Bank, commercial
rents have been on the rise while the commercial vacancy rates in most
sections have been declining by approximately 20%. Although in recent months
there have been indications that economic conditions and loan demand in the
region have been improving, there can be no assurance that these improved
conditions will continue.
Nonaccrual loans at March 31, 1995 amounted to $38.2 million, or
2.4% of total loans, as compared to $36.8 million, or 2.5% of total loans,
at September 30, 1994. Of the $38.2 million in nonaccrual loans at March 31,
1995, $11.6 million represents loans restructured to assist borrowers in
meeting their obligations.
The following table sets forth the Savings Bank's nonaccrual loans
at the dates indicated:
<TABLE>
<CAPTION>
March 31, September 30,
1995 1994
----------- -------------
(In Thousands)
<S> <C> <C>
Nonaccrual Loans
First mortgage loans:
One to four family conventional residential..................... $ 14,978 $ 14,885
Commercial real estate.......................................... 21,143 20,359
----------- ----------
36,121 35,244
----------- ----------
Other loans - Cooperative residential loans....................... 2,074 1,509
----------- ----------
Total nonaccrual loans........................................ $ 38,195 $ 36,753
=========== ==========
</TABLE>
The amount of interest income on nonaccrual loans that would have
been recorded had these loans been current in accordance with their original
terms, was $966,000 and $862,000 for the three month periods ended March 31,
1995 and 1994, respectively. The amount of interest income that was recorded
on these loans was $278,000 and $331,000 for the three month periods ended
March 31, 1995 and 1994, respectively.
Additionally, at March 31, 1995, the Savings Bank had $3.2 million
in real estate owned as compared to $6.0 million at September 30, 1994.
Further, at March 31, 1995 the Savings Bank also had twelve restructured
commercial real estate loans amounting to approximately $7.0 million for
which interest is being recorded in accordance with the loans' restructured
terms. The amount of the interest income lost on these restructured loans is
immaterial.
22
<PAGE>
The Savings Bank also has $3.9 million of consumer and other loans
which are past due 90 days and still accruing interest as of March 31, 1995.
Of the $3.9 million, $2.1 million represent loans guaranteed by the United
States Department of Education through the New York State Higher Education
Services Corporation.
The Savings Bank's allowance for possible loan losses at March 31,
1995 was $25.6 million which represented 67.0% of nonaccrual loans or 1.6%
of total loans, compared to $25.7 million at September 30, 1994 which
represented 69.9% of nonaccrual loans or 1.8% of total loans.
The following is a summary of the activity in the Savings Bank's
allowance for possible loan losses for the quarters ended March 31:
<TABLE>
<CAPTION>
Summary of Loan Loss Experience
-------------------------------
As of and for the
Quarter Ended
March 31,
------------------------------
1995 1994
----------- ------------
(In Thousands)
<S> <C> <C>
Allowance for possible loan losses, beginning of quarter..................... $ 25,838 $ 27,048
Charge-offs:
Commercial real estate...................................................... (160) (51)
Real estate - construction.................................................. -- --
Real estate - mortgage...................................................... (134) (799)
Other loans................................................................. (377) (62)
----------- -----------
Total charge-offs......................................................... (671) (912)
----------- -----------
Less: Recoveries
Commercial real estate.................................................... -- --
Real estate - mortgage.................................................... -- --
Other loans............................................................... 12 33
----------- -----------
Total recoveries......................................................... 12 33
----------- -----------
Net charge-offs............................................................. (659) (879)
----------- -----------
Addition to allowance charged to expense.................................... 400 800
----------- -----------
Allowance at end of quarter................................................. $ 25,579 $ 26,969
=========== ===========
</TABLE>
Net Interest Income After Provision for Possible Loan Losses
------------------------------------------------------------
Net interest income after provision for possible loan losses for
the quarter ended March 31, 1995 amounted to $23.7 million, representing an
increase of $2.0 million from the $21.7 million amount during the quarter
ended March 31, 1994. This increase primarily reflects a $146.9 million
increase in average interest-earning assets, coupled with a 4 basis point
increase in the Savings Bank's net interest margin from 3.70% in 1994 to
3.74% in 1995.
23
<PAGE>
Other Operating Income
----------------------
Other operating income amounted to $.3 million for the quarter
ended March 31, 1995, compared with $2.3 million for the quarter ended
March 31, 1994. The $2.0 million decrease in other operating income was
primarily attributable to a $1.2 million net loss on the sales of mortgage
loans and securities available for sale during the quarter ended March 31,
1995 as compared to a $.5 million net gain on the sales of mortgage loans
and securities available for sale during the comparable prior year quarter.
The net loss on the sales of mortgage loans and securities available for
sale for the quarter ended March 31, 1995 was principally incurred in
connection with the restructuring and sale of a portion of the Hamilton
Bancorp mortgage-backed securities portfolio. Such restructuring and sale
were completed in order to make the acquired portfolio's risk profile more
consistent with the Company's.
Other Operating Expenses
------------------------
Other operating expenses totaled $31.9 million for the quarter
ended March 31, 1995, as compared to $12.6 million during the quarter ended
March 31, 1994. The $19.3 million increase in other operating expenses was
primarily attributable to the $19.0 million in merger and restructuring
charges. Such charges included $4.3 million in investment banking, legal
and accounting fees, $6.3 million in severance costs, $5.1 million related
to the termination of Hamilton Bancorp's ESOP and accelerated vesting of
RRP shares, and $3.3 million in certain back-office and facilities
consolidation costs and signage costs. Excluding the merger and
restructuring expenses, other operating expenses totaled $12.9 million, or
1.96% of average assets, during the quarter ended March 31, 1995. This
compares with $12.6 million, or 2.04% of average assets during the quarter
ended March 31, 1994. As a result of the Merger, cost savings and other
consolidation efficiencies could result in annual pre-tax savings of
approximately $9.0 million. Although actions taken to realize cost savings
and other consolidation efficiencies occurred in large part by quarter end,
the favorable impact of the major part of these savings and efficiencies
were not yet reflected in this quarter, but are anticipated to be reflected
in future periods as they are realized.
Income Tax Expense
------------------
Income taxes decreased $3.0 million to $2.0 million for the
quarter ended March 31, 1995. The income tax expense for the current
quarter reflects the non-deductibility of certain merger and restructuring
charges.
24
<PAGE>
H. COMPARISON OF SIX MONTHS ENDED MARCH 31, 1995 AND 1994
General
-------
New York Bancorp incurred a net loss of $3.3 million, or $.25 per
share, for the six months ended March 31, 1995, compared to net income of
$18.2 million, or $1.33 per share, for the comparable prior year period,
which included $5.7 million in income, or $.42 per share, from the
cumulative effect of a change in accounting for income taxes. Included in
the results of operations for the six months ended March 31, 1995 are
certain non-recurring restructuring and merger-related costs which amounted
to approximately $16.1 million, on an after-tax basis, and a net loss
resulting from the restructuring and subsequent sale of a portion of
Hamilton Bancorp's securities portfolio which amounted to $.7 million, on an
after-tax basis. Such sale was transacted in order to reduce the risk
profile of the securities portfolio acquired.
Interest Income
---------------
Interest income on interest-earning assets for the six months
ended March 31, 1995 increased by $14.3 million, or 17.4%, to $96.4 million
compared to $82.1 million for the six months ended March 31, 1994. The
increase in interest income is primarily attributable to a 55 basis point
increase in yield, coupled with a $202.5 million increase in
interest-earning assets.
Interest and fee income on loans for the six months ended March
31, 1995 increased by $5.1 million, or 9.0%, to $62.1 million compared to
$57.0 million for the same period in 1994. The increase in loan income
reflects a $102.4 million increase in the average loan balance to $1,496.5
million, coupled with a 3 basis point increase in yield on first mortgage
loans and a 46 basis point increase in yield on other loans. Interest on
mortgage-backed securities held to maturity and mortgage-backed securities
available for sale for the six months ended March 31, 1995 increased by $8.5
million to $31.0 million as compared to the same period in 1994. The
increase in income on mortgage-backed securities held to maturity and
mortgage-backed securities available for sale primarily reflects a $112.5
million increase in the average balance to $945.8 million, coupled with a
115 basis point increase in yield. Money market investment income for the
six months ended March 31, 1995 decreased by $.9 million to $.6 million.
This decrease reflects a $61.8 million decrease in the average balance of
the portfolio which, however, was partially offset by a 135 basis point
increase in the yield. Interest on trading account securities for the six
months ended March 31, 1995 increased $.2 million to $.4 million. The
increase primarily reflects a 246 basis point increase in yield on trading
account securities to 5.44%. Interest and dividends on investment securities
increased by $1.4 million to $2.4 million as compared to $1.0 million earned
in the prior year. This increase reflects a $48.9 million increase in the
average balance of the portfolio to $73.6 million, which, however, was
partially offset by a 155 basis point decrease in the yield on investment
securities to 6.54%.
25
<PAGE>
Interest Expense
----------------
Interest expense on interest-bearing liabilities for the six
months ended March 31, 1995 increased by $9.6 million, or 25.3%, to $47.7
million compared to $38.1 million for the six months ended March 31, 1994.
The increase in interest expense for the six months primarily reflects a
$189.6 million growth in interest-bearing liabilities to $2,386.8 million
coupled with a 53 basis point increase in cost on interest-bearing
liabilities to 4.00%. The impact of the Savings Bank's use of interest rate
swaps and other off-balance sheet instruments was to increase interest
expense by $.1 million for the six months ended March 31, 1995 and increase
interest expense by $1.1 million for the six months ended March 31, 1994.
Interest expense on deposits increased by $2.6 million to $30.4
million for the six months ended March 31, 1995, compared to the six months
ended March 31, 1994. This increase reflects a 32 basis point increase in
the average cost of deposits from 3.13% in 1994 to 3.45% in 1995. This
increase, however, was partially offset by a $12.4 million decrease in the
average balance of deposits to $1,765.9 million in 1994. Interest expense on
borrowed funds increased $7.0 million to $17.3 million for the six months
ended March 31, 1995 as compared to the six months ended March 31, 1994.
This increase reflects a $202.0 million increase in the average balance of
borrowed funds to $620.9 million, coupled with a 66 basis point increase in
the average cost of borrowed funds from 4.92% in 1994 to 5.58% in 1994.
Provision for Possible Loan Losses
----------------------------------
Home Federal provided $.9 million and $1.6 million for possible
loan losses during the six months ended March 31, 1995 and 1994,
respectively. The reduction in the provision for possible loan losses
reflects the improvement in management's assessment for anticipated losses
inherent in the loan portfolios. The Savings Bank's ratio of its allowance
for possible loan losses to total nonaccrual loans amounted to 67.0% and
66.2% at March 31, 1995 and 1994, respectively.
Net Interest Income After Provision for Possible Loan Losses
------------------------------------------------------------
Net interest income after provision for possible loan losses for
the six months ended March 31, 1995 amounted to $47.8 million, representing
an increase of $5.3 million from the $42.5 million amount during the quarter
ended March 31, 1994. This increase primarily reflects a $202.5 million
increase in average interest-earning assets, coupled with a 5 basis point
increase in the Savings Bank's net interest margin from 3.77% in 1994 to
3.82% in 1995.
26
<PAGE>
Other Operating Income
----------------------
Other operating income amounted to $1.5 million for the six months
ended March 31, 1995, compared with $4.4 million for the quarter ended March
31, 1994. The $2.9 million decrease in other operating income was primarily
attributable to a $1.5 million net loss on the sales of mortgage loans and
securities available for sale during the six months ended March 31, 1995 as
compared to a $.6 million net gain on the sales of mortgage loans and
securities available for sale during the comparable prior year quarter. The
net loss on the sales of mortgage loans and securities available for sale
for the six months ended March 31, 1995 was principally incurred in
connection with the restructuring and sale of a portion of the Hamilton
Bancorp mortgage-backed securities portfolio. Net loss on real estate
operations also increased $.6 million to $.7 million, primarily representing
disposals of real estate owned during the current six month period.
Other Operating Expenses
------------------------
Other operating expenses totaled $44.7 million for the six months
ended March 31, 1995, as compared to $25.0 million during the six months
ended March 31, 1994. The $19.7 million increase in other operating expenses
was primarily attributable to the $19.0 million in merger and restructuring
charges. Without the merger and restructuring expenses, other operating
expenses would have totaled $25.7 million, or 1.99% of average assets,
during the six months ended March 31, 1995. This compares with $25.0
million, or 2.08% of average assets during the six months ended March 31,
1994.
Income Tax Expense
------------------
Income taxes decreased $1.4 million to $8.0 million for the six
months ended March 31, 1995 reflecting lower operating income for the
period, offset by the non-deductibility of certain merger and restructuring
charges.
Cumulative Effect of Change in Accounting Principle
---------------------------------------------------
During the six months ended March 31, 1994, the Savings Bank
recognized $5.7 million in income from the cumulative effect of a change in
accounting principle related to implementing Statement of Financial
Accounting Standards No. 109 "Accounting for Income Taxes" on a prospective
basis.
27
<PAGE>
H. SELECTED FINANCIAL DATA
The following table sets forth certain selected financial data.
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
March 31, March 31,
----------------------- -----------------------
1995 1994(1) 1995 1994(1)
------- ------- ------- -------
(Dollars in Thousands, except per share amounts)
<S> <C> <C> <C> <C>
FINANCIAL RATIOS (2)
- --------------------
Average Yield:
First mortgage loans......................................... 8.44% 8.17% 8.29% 8.26%
Other loans.................................................. 8.40 7.85 8.35 7.89
Money market investments..................................... 5.80 3.70 5.54 4.19
Trading account securities................................... 5.95 3.08 5.44 2.98
Investment securities........................................ 6.57 7.31 6.54 8.09
Mortgage-backed securities................................... 6.58 5.58 6.55 5.40
All interest-earning assets............................... 7.67 6.98 7.57 7.02
Average cost:
Deposits..................................................... 3.56 3.19 3.45 3.13
Borrowed funds............................................... 5.83 4.69 5.58 4.92
All interest-bearing liabilities.......................... 4.17 3.50 4.00 3.47
Net interest rate spread........................................ 3.50 3.48 3.57 3.55
Net interest margin............................................. 3.74 3.70 3.82 3.77
Average interest-earning assets to
average interest-bearing liabilities.......................... 106.09 106.66 106.80 106.80
Return on average assets........................................ (1.50) 1.05 (.26) 1.52
Return on average common equity................................. (22.85) 15.67 (3.93) 22.22
Operating expense to average assets............................. 4.87 2.04 3.45 2.08
Equity to asset ratio at March 31............................... 6.45 6.52 6.45 6.52
Cumulative one year gap as a percent of total
interest-earning assets at March 31 (3)....................... -8.8% +6.3% -8.8% +6.3%
SHARE INFORMATION(4):
- --------------------
Earnings per common share.................................... $ (.73) $ .47 $ (.25) $ 1.33
Weighted average number of common shares
and equivalents outstanding................................ 13,377,124 13,780,729 13,191,066 13,718,838
Number of shares outstanding at March 31..................... 13,523,935 13,251,964 13,523,935 13,251,964
Book value per share at March 31............................. $ 12.59 $ 12.25 $ 12.59 $ 12.25
NET INTEREST POSITION:
- ---------------------
Excess of average interest-earning assets
over average interest-bearing liabilities.................. $ 146,909 $ 150,619 $ 162,401 $ 149,472
LOAN HIGHLIGHTS:
- ---------------
Loan originations............................................ $ 117,721 $ 93,494 $ 200,798 $ 189,466
Loan purchases............................................... $ 5,584 $ -- $ 13,981 $ 453
Loan sales................................................... $ 4,719 $ 29,604 $ 18,312 $ 59,506
Loans serviced for others at March 31........................ $ 518,102 $ 535,048 $ 518,102 $ 535,048
Loan servicing fees.......................................... $ 499 $ 490 $ 990 $ 1,090
ADJUSTABLE RATE ASSETS AT MARCH 31:
- ----------------------------------
First mortgage loans and mortgage-backed securities.......... $ 926,552 $ 815,626 $ 926,552 $ 815,626
Other loans, money market investments, trading
account securities and investment securities............... $ 286,861 $ 293,028 $ 286,861 $ 293,028
Total adjustable rate assets as a percent
of total interest-earning assets........................... 47.21% 46.58% 47.21% 46.58%
____________
(1) Restated to reflect the merger with Hamilton Bancorp, which was accounted for as a pooling of interests.
(2) Selected financial ratios were computed using daily average balances and annualized, where applicable.
(3) The cumulative one year gap as a percent of total interest-earning assets is computed based on
assumptions substantially similar to those used by the OTS.
(4) Share and per share information have been restated in all periods presented to fully reflect the ten
percent stock dividend effective February 14, 1994.
</TABLE>
28
<PAGE>
PART II - OTHER INFORMATION
---------------------------
Item 1. Legal Proceedings
- --------------------------
Not Applicable
Item 2. Changes in Securities
- ------------------------------
Not Applicable
Item 3. Defaults Upon Senior Securities
- ----------------------------------------
Not applicable
Item 4. Submission of Matters to a Vote of Security Holders
- ------------------------------------------------------------
Not applicable
Item 5. Other Information
- --------------------------
Not applicable
29
<PAGE>
Item 6. Exhibits and Reports on Form 8-K
- -----------------------------------------
(a) Exhibits
--------
Exhibit
Number Description
------- -----------
3.1 Certificate of Incorporation of New York Bancorp Inc., as
amended(9)
3.2 Bylaws of New York Bancorp Inc., as amended(7)
10.2 New York Bancorp Inc. Incentive Stock Option Plan(2)
10.3 New York Bancorp Inc. Option Plan for Outside Directors(3)
10.4 Home Federal Savings Bank Management Recognition Plan and
Trust(1)
10.8 Home Federal Savings Bank Employee Stock Purchase Plan(4)
10.9 New York Bancorp Inc. 1990 Incentive Stock Option Plan(5)
10.10 New York Bancorp Inc. 1990 Option Plan for Outside
Directors(6)
10.13 Home Federal Savings Bank Supplemental Executives Benefit
Plan, as amended(9)
10.14 Home Federal Savings Bank Deferred Compensation Plan, as
amended(9)
10.17 New York Bancorp Inc. 1993 Long-Term Incentive Plan(7)
10.18 New York Bancorp Inc. 1993 Stock Option Plan for Outside
Directors(8)
11 Statements re computation of per share earnings
27 Financial Data Schedule
(1) Incorporated by reference to Exhibits filed with Registration Statement on
Form S-1, No. 33-16369
(2) Incorporated by reference to Exhibits filed with Registration Statement
on Form S-8, No. 33-23468
(3) Incorporated by reference to Exhibits filed with Registration Statement
on Form S-8, No. 33-23478
(4) Incorporated by reference to Exhibits filed with New York Bancorp Inc.'s
1989 Form 10-K
(5) Incorporated by reference to Annex A of the Company's Proxy Statement
furnished to shareholders in connection with the Annual Meeting of
Shareholders held on January 23, 1991
(6) Incorporated by reference to Annex B of the Company's Proxy Statement
furnished to shareholders in connection with the Annual Meeting of
Shareholders held on January 23, 1991
(7) Incorporated by reference to Exhibits filed with New York Bancorp Inc.'s
1992 Form 10-K
(8) Incorporated by reference to Exhibit A of the Company's Proxy Statement
furnished to shareholders in connection with the Annual Meeting of
Shareholders held on January 25, 1994
(9) Incorporated by reference to Exhibits filed with New York Bancorp Inc.'s
1994 Form 10-K
30
<PAGE>
(b) Reports on Form 8-K
On February 10, 1995 New York Bancorp filed Form 8-K with the
Securities and Exchange Commission to report that on January 27,
1995, pursuant to the Agreement and Plan of Merger dated as of
June 30, 1994, between New York Bancorp and Hamilton Bancorp,
Hamilton Bancorp merged with and into the Company.
On March 6, 1995 New York Bancorp filed Form 8-K (Item 5) with the
Securities and Exchange Commission relating to the resignation of
Gerald E. Lundgren, as President and Chief Executive Officer of
Home Federal Savings Bank and Executive Vice President of New York
Bancorp, together with related Executive Officer and Board
appointments.
On March 24, 1995 New York Bancorp filed Form 8-K (Item 5) with
the Securities and Exchange Commission relating to a press release
announcing its earnings for the two and five months ended February
28, 1995.
On April 11, 1995 New York Bancorp filed Form 8-K/A with the
Securities and Exchange Commission which provided the required
financial statements and pro forma financial information relating
to the Merger of New York Bancorp and Hamilton Bancorp.
31
<PAGE>
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.
NEW YORK BANCORP INC.
(Registrant)
Date: May 12, 1995 By: /s/ Michael A. McManus, Jr.
--------------------------------
Michael A. McManus, Jr.
President and
Chief Executive Officer
Date: May 12, 1995 By: /s/ Stan I. Cohen
--------------------------------
Stan I. Cohen
Senior Vice President,
Controller and Secretary
32
<PAGE>
NEW YORK BANCORP INC.
241-02 Northern Boulevard
Douglaston, New York 11362
Form 10-Q
March 31, 1995
Exhibit 11. Statement re: Computation of Per Share Earnings
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
March 31, March 31,
--------------------- ---------
1995 1994 1995 1994
------- ------- ------- ----
(In Thousands, except per share amounts)
<S> <C> <C> <C> <C>
Income before cumulative effect of change
in accounting principle................................... $ (9,804) $ 6,446 $ (3,337) $ 12,505
Cumulative effect of change in accounting
for income taxes.......................................... -- -- -- 5,685
---------- --------- ---------- ----------
Net income................................................. $ (9,804) $ 6,446 $ (3,337) $ 18,190
========== ========= ========== ==========
Weighted average common shares outstanding................. 13,377 13,090 13,191 13,104
Common stock equivalents due to dilutive
effect of stock options................................... -- 647 -- 611
---------- --------- ---------- ----------
Total weighted average common shares and
equivalents outstanding................................... 13,377 13,737 13,191 13,715
========== ========= ========== ==========
Primary earnings per share:
Income before cumulative effect of
change in accounting principle.......................... $ (.73) $ .47 $ (.25) $ .91
Cumulative effect of change in
accounting for income taxes............................. .-- .-- .-- .42
------- ------ ------- ------
Net income............................................... $ (.73) $ .47 $ (.25) $ 1.33
======= ====== ======= ======
Total weighted average common shares and
equivalents outstanding................................... 13,377 13,737 13,191 13,715
Additional dilutive shares using ending
period market value versus average market
value for the period when utilizing the
treasury stock method regarding stock options............. -- 44 -- 84
--------- --------- ---------- ---------
Total shares for fully diluted earnings per share.......... 13,377 13,781 13,191 13,799
========= ========= ========== =========
Fully diluted earnings per share:
Income before cumulative effect of
change in accounting principle.......................... $ (.73) $ .47 $ (.25) $ .91
Cumulative effect of change in
accounting for income taxes............................. .-- .-- .-- .41
------ ------ ------- ------
Net income............................................... $ (.73) $ .47 $ (.25) $ 1.32
====== ====== ======= ======
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 9
<LEGEND>
This schedule contains summary information extracted from the Form 10-Q
and is qualified in its entirety by reference to such financial statements.
</LEGEND>
<CIK> 0000820068
<NAME> NEW YORK BANCORP INC.
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> SEP-30-1994
<PERIOD-END> MAR-31-1995
<CASH> 21,556
<INT-BEARING-DEPOSITS> 0
<FED-FUNDS-SOLD> 16,221
<TRADING-ASSETS> 13,294
<INVESTMENTS-HELD-FOR-SALE> 19,860
<INVESTMENTS-CARRYING> 45,445
<INVESTMENTS-MARKET> 44,183
<LOANS> 1,568,056
<ALLOWANCE> (25,579)
<TOTAL-ASSETS> 2,640,055
<DEPOSITS> 1,744,409
<SHORT-TERM> 672,593
<LIABILITIES-OTHER> 52,723
<LONG-TERM> 0
<COMMON> 62,597
0
0
<OTHER-SE> 107,733
<TOTAL-LIABILITIES-AND-EQUITY> 2,640,055
<INTEREST-LOAN> 31,918
<INTEREST-INVEST> 1,683
<INTEREST-OTHER> 15,389
<INTEREST-TOTAL> 48,990
<INTEREST-DEPOSIT> 15,395
<INTEREST-EXPENSE> 24,860
<INTEREST-INCOME-NET> 24,130
<LOAN-LOSSES> 400
<SECURITIES-GAINS> (1,177)
<EXPENSE-OTHER> 31,882
<INCOME-PRETAX> (7,806)
<INCOME-PRE-EXTRAORDINARY> (9,804)
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (9,804)
<EPS-PRIMARY> (.73)
<EPS-DILUTED> (.73)
<YIELD-ACTUAL> 3.74
<LOANS-NON> 38,195
<LOANS-PAST> 3,900
<LOANS-TROUBLED> 7,000
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 25,838
<CHARGE-OFFS> 671
<RECOVERIES> 12
<ALLOWANCE-CLOSE> 25,579
<ALLOWANCE-DOMESTIC> 25,579
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0<F1>
<FN>
<F1>
This information is not contained in the quarterly report.
</FN>
</TABLE>
