SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
--------------------
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
October 27, 1997
NEW YORK BANCORP INC.
- --------------------------------------------------------------------------------
(Exact Name of Registrant as Specified in its Charter)
Delaware 1-11684 11-2869250
- ---------------------------- ----------- ----------------
(State or Other Jurisdiction (Commission (I.R.S. Employer
of Incorporation) File Number) Identification No.)
241-02 Northern Boulevard, Douglaston, New York 11362
- --------------------------------------------------------------------------------
(Address of Principal Executive Offices) (Zip Code)
(718) 631-8100
- --------------------------------------------------------------------------------
(Registrant's Telephone Number, Including Area Code)
Not Applicable
- --------------------------------------------------------------------------------
(Former Name or Former Address, if Changed Since Last Report)
<PAGE>
Item 5 - Other Events.
On October 27, 1997 New York Bancorp Inc. and its wholly owned
subsidiary, Home Federal Savings Bank issued a press release
announcing earnings for the fourth quarter ended September 30,
1997. A copy of the press release is attached hereto as Exhibit 99.
Item 7 - Financial Statements and Exhibits.
(c) Exhibits.
99 - Press Release, dated October 27, 1997
2
<PAGE>
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
Date: October 29, 1997 NEW YORK BANCORP INC.
By: /s/ Michael A. McManus, Jr.
-------------------------------
Michael A. McManus, Jr.
President and
Chief Executive Officer
3
<PAGE>
EXHIBIT INDEX
Exhibit No. Description
- ----------- -----------
99 Press Release, dated October 27, 1997
Exhibit 99
[NEW YORK BANCORP INC. LETTERHEAD]
News Release
For Immediate Release
NEW YORK BANCORP INC.
ANNOUNCES RECORD EARNINGS PER SHARE
WITH A RETURN ON EQUITY OF OVER 30%
Douglaston, New York (October 27, 1997) (NYSE-NYB), New York Bancorp Inc.
(the holding company for Home Federal Savings Bank), today reported net income
for the fourth quarter ended September 30, 1997 of $13.9 million which
represents a record level of earnings per share of $.62. Net income for the
fourth quarter ended September 30, 1996 amounted to $5.4 million, or $.23 per
share, and included a one-time charge of $9.4 million, or $.24 per share on an
after-tax basis, representing the Bank's assessment to recapitalize the Savings
Association Insurance Fund of the FDIC (the "SAIF"). Without the effect of this
one-time charge, net income for the quarter ended September 30, 1996 would have
amounted to $10.8 million, or $.47 per share.
Commenting on the quarterly results, Michael A. McManus, Jr., President
and Chief Executive Officer of the Company stated: "It is extremely gratifying
to once again report earnings per share at record levels and to continue to
report one of the best returns on equity in the country at 32.6%. Importantly,
during the current quarter we were able to reduce our non-accrual loans to the
lowest level in over five years, with a loan loss reserve coverage ratio of
107%."
(Continued)
FOR INFORMATION CONTACT:
Michael A. McManus, Jr.
President & Chief Executive Officer
(718) 631-8100
<PAGE>
MERGER AGREEMENT
As previously announced on October 7, 1997, New York Bancorp signed a
definitive merger agreement with North Fork Bancorporation, Inc. ("North Fork")
whereby the Company will be merged with and into North Fork.
Under the terms of the merger agreement, each share of the Company will
be converted into 1.19 shares of North Fork. The transaction, which is expected
to close in March 1998, is subject to approval by the shareholders and the
appropriate regulatory authorities of both the Company and North Fork, as well
as the satisfaction of certain other conditions.
RECORD RESULTS FOR THE YEAR
Net income for the year ended September 30, 1997 represented record
levels at $51.2 million, or $2.25 per share. Excluding the SAIF recapitalization
charge, net income for the year ended September 30, 1996 would have amounted to
$37.4 million, or $1.57 per share. Return on equity for the current fiscal year
was 31.5% compared to 23.7% for the prior year, excluding the SAIF
recapitalization charge.
RESULTS FOR THE QUARTER
CORE EARNINGS
The Company's net interest income, "core earnings," for the quarter ended
September 30, 1997 amounted to $29.2 million, representing an increase of $2.4
million from the quarter ended September 30, 1996. This increase resulted from a
$321.2 million increase in average interest-earning assets, partially offset by
a 7 basis point decrease in the Company's net interest margin to 3.70% for the
quarter ended September 30, 1997. The decline in the net interest margin
primarily reflects the increased use of borrowed funds to fund asset growth.
ASSET QUALITY AND LOAN LOSS ALLOWANCE
Non-accrual loans at September 30, 1997 declined by 31.4% to $17.5
million, or .86% of total loans, as compared with $25.6 million, or 1.36% of
total loans, at September 30, 1996. At September 30, 1997 the Bank had $1.4
million in real estate owned compared to $3.2 million at September 30, 1996.
During the quarter ended September 30, 1997, the Company's provision for
possible loan losses amounted to $.3 million, the same as the comparable
prior-year period. The Company's quarterly provision for possible loan losses is
based on management's periodic review and evaluation of the loan portfolio. The
Bank's allowance for possible loan losses at September 30, 1997 was $18.7
million, which represented 106.6% of non-accrual loans and .92% of total loans,
as compared to $19.4 million at September 30, 1996, which represented 75.9% of
non-accrual loans and 1.04% of total loans.
(Continued)
2
<PAGE>
NON-INTEREST INCOME
Non-interest income amounted to $4.9 million for the quarter ended
September 30, 1997, compared to $4.5 million for the prior year comparable
quarter, primarily reflecting a $.4 million or 25.8% increase in banking related
fee income.
NON-INTEREST EXPENSE
The general and administrative expense component of non-interest expense
totaled $12.8 million, or 1.57% of average assets, for the quarter ended
September 30, 1997, compared to $12.3 million, or 1.68% of average assets, for
the quarter ended September 30, 1996.
ASSETS
Total assets at September 30, 1997 amounted to $3.2 billion, reflecting a
$303.3 million increase from the amount reported at September 30, 1996. The
increase in total assets primarily reflects an increase of $166.6 million in
total loans and $147.6 million in mortgage-backed securities. These increases
were primarily funded through a $245.1 million increase in borrowed funds.
During the fiscal year, the Bank originated $544.4 million in loans, reflecting
a record level.
At September 30, 1997, the Company's cumulative one year gap as a percent
of total interest-earning assets was within the Company's guidelines at a
negative 8.2% compared to a negative 2.9% at September 30, 1996. The Company's
policy is to continually monitor and manage the one year gap within
predetermined guidelines.
TREASURY STOCK TRANSACTIONS
During the quarter ended September 30, 1997, the Company repurchased
310,297 shares of its common stock under its stock repurchase plan. In
connection with the aforementioned merger agreement providing for the merger of
the Company with North Fork, which is intended to be accounted for as a pooling
of interests, the Company's Board of Directors terminated its stock repurchase
plan.
CAPITAL REQUIREMENTS
As of September 30, 1997, Home Federal Savings Bank is considered a "well
capitalized" institution under the prompt corrective action regulations and
continues to exceed all regulatory capital requirements. Regulatory capital,
which is comprised of "tangible capital," "core capital" and "risk-based
capital," amounted to approximately $165.9 million, $165.9 million and $184.1
million, respectively, which exceeded the respective regulatory requirements by
$117.2 million, $68.5 million and $59.6 million.
(Continued)
3
<PAGE>
DIVIDEND DECLARATION
During the quarter, the Board of Directors declared a regular $.15 per
share dividend payable on October 23, 1997 to shareholders of record as of
October 9, 1997.
New York Bancorp Inc. with assets of approximately $3.2 billion and
deposits of $1.7 billion as of September 30, 1997, provides retail and
commercial banking and mortgage and consumer loan services through the
thirty-four offices of its subsidiary, Home Federal Savings Bank, which are
located in Kings, Queens, Nassau, Richmond, Suffolk and Westchester counties.
This release may contain certain forward-looking statements which are based on
management's current expectations regarding economic, legislative, and
regulatory issues that may impact the Company's earnings in future periods.
Factors that could cause future results to vary materially from current
management expectations include, but are not limited to, general economic
conditions, changes in interest rates, deposit flows, real estate values, and
competition; changes in accounting principles, policies, or guidelines; changes
in legislation or regulation; and other economic, competitive, governmental,
regulatory and technological factors affecting the Company's operations,
pricing, products, and services.
-END-
4
<PAGE>
NEW YORK BANCORP INC. AND SUBSIDIARY
----- CONSOLIDATED STATEMENTS OF INCOME -----
<TABLE>
<CAPTION>
Three Months Ended Year Ended
September 30, September 30,
------------------------ ----------------------
1997 1996 1997 1996
--------- --------- ---------- --------
(In Thousands, except per share amounts)
<S> <C> <C> <C> <C>
INTEREST INCOME:
Interest and fees on loans:
First mortgage loans............................... $ 37,147 $ 31,978 $ 140,248 $ 118,792
Other loans........................................ 5,468 5,936 22,355 24,735
--------- --------- ---------- ----------
Total interest and fees on loans................ 42,615 37,914 162,603 143,527
Mortgage-backed securities........................... 16,766 14,047 63,790 56,921
Debt and equity securities - taxable................. 3,058 2,351 12,435 6,774
Money market investments............................. 8 37 21 256
Trading account securities........................... -- -- -- 13
--------- --------- ---------- ----------
Total interest income........................... 62,447 54,349 238,849 207,491
--------- --------- ---------- ----------
INTEREST EXPENSE:
Deposits............................................. 13,953 14,422 55,522 60,470
Borrowed funds....................................... 19,323 13,106 65,111 46,276
--------- --------- ---------- ----------
Total interest expense.......................... 33,276 27,528 120,633 106,746
--------- --------- ---------- ----------
Net interest income............................. 29,171 26,821 118,216 100,745
Provision for possible loan losses...................... (300) (300) (2,100) (1,200)
--------- --------- ---------- ----------
Net interest income after provision
for possible loan losses....................... 28,871 26,521 116,116 99,545
--------- --------- ---------- ----------
NON-INTEREST INCOME:
Loan fees and service charges........................ 687 676 2,941 2,770
Banking service fees................................. 1,838 1,461 6,564 5,323
Fees from sale of investment products................ 392 307 1,814 1,376
Net gain on the sale of mortgage
loans and securities available for sale............ 1,934 1,972 2,681 4,750
Other................................................ 64 80 4,753 448
--------- --------- ---------- ----------
Total non-interest income....................... 4,915 4,496 18,753 14,667
--------- --------- ---------- ----------
NON-INTEREST EXPENSE:
General and administrative:
Compensation and benefits.......................... 6,561 6,203 25,603 22,741
Occupancy, net..................................... 2,368 2,034 8,842 8,397
Advertising and promotion.......................... 585 355 2,261 2,565
Federal deposit insurance premiums................. 487 931 2,212 3,759
Other.............................................. 2,808 2,757 11,131 10,073
--------- --------- ---------- ----------
Total general and administrative................ 12,809 12,280 50,049 47,535
Real estate operations, net.......................... 25 123 924 463
SAIF recapitalization................................ -- 9,432 -- 9,432
--------- --------- ---------- ----------
Total non-interest expense...................... 12,834 21,835 50,973 57,430
--------- --------- ---------- ----------
Income before income tax expense................ 20,952 9,182 83,896 56,782
--------- --------- ---------- ----------
INCOME TAX EXPENSE:
Federal expense...................................... 6,774 2,291 25,900 16,676
State and local expense.............................. 308 1,519 6,785 8,100
--------- --------- ---------- ----------
Total income tax expense........................ 7,082 3,810 32,685 24,776
--------- --------- ---------- ----------
Net income...................................... $ 13,870 $ 5,372 $ 51,211 $ 32,006
========= ========= ========== ==========
EARNINGS PER COMMON SHARE (1)........................... $ .62 $ .23 $ 2.25 $ 1.34
</TABLE>
(1) Per share amounts have been restated to fully reflect the 3-for-2 stock
split effective January 23, 1997 and the 4-for-3 stock split effective July
24, 1997.
5
<PAGE>
NEW YORK BANCORP INC. AND SUBSIDIARY
----- CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION -----
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)
<TABLE>
<CAPTION>
September 30, September 30,
1997 1996
---- ----
<S> <C> <C>
ASSETS
Cash and due from banks..................................................... $ 26,305 $ 13,045
Money market investments.................................................... -- 10,700
Investment in debt and equity securities, net:
Held to maturity (estimated market value of
$609 and $641 at September 30,
1997 and 1996, respectively)............................................ 593 643
Available for sale....................................................... 107,150 136,133
Mortgage-backed securities, net:
Held to maturity (estimated market value of
$636,142 and $534,602 at September 30,
1997 and 1996, respectively)............................................ 644,247 550,817
Available for sale....................................................... 334,641 280,429
Federal Home Loan Bank stock................................................ 54,119 27,938
Loans receivable, net:
First mortgage loans..................................................... 1,788,031 1,603,769
Other loans.............................................................. 251,080 268,779
--------------- ---------------
2,039,111 1,872,548
Less allowance for possible loan losses.................................. (18,695) (19,386)
--------------- ---------------
Total loans receivable, net............................................ 2,020,416 1,853,162
Accrued interest receivable................................................. 21,590 21,862
Premises and equipment, net................................................. 12,711 12,927
Other assets................................................................ 22,428 33,251
--------------- ---------------
Total assets........................................................... $ 3,244,200 $ 2,940,907
=============== ===============
LIABILITIES & SHAREHOLDERS' EQUITY
LIABILITIES:
Deposits................................................................. $ 1,684,419 $ 1,715,959
Borrowed funds........................................................... 1,253,931 1,008,786
Mortgagors' escrow payments.............................................. 17,247 14,987
Due to brokers........................................................... 60,765 --
Accrued expenses and other liabilities................................... 58,775 49,272
--------------- ---------------
Total liabilities...................................................... 3,075,137 2,789,004
--------------- ---------------
SHAREHOLDERS' EQUITY (1):
Preferred stock, $.01 par value,
2,000,000 shares authorized; none issued................................ -- --
Common stock, $.01 par value, 30,000,000 shares
authorized; 29,493,166 and 29,493,700 shares issued at September 30, 1997
and 1996; respectively; 21,318,644 and 22,197,600 shares outstanding at
September 30, 1997 and 1996, respectively............................... 295 295
Additional paid-in capital............................................... 66,495 65,355
Retained earnings, substantially restricted.............................. 181,851 145,686
Treasury stock, at cost, 8,174,522 and 7,296,100 shares at
September 30, 1997 and 1996, respectively............................... (81,092) (58,871)
Unrealized appreciation (depreciation) on securities
available for sale, net of tax effect................................... 1,514 (562)
--------------- ---------------
Total shareholders' equity............................................. 169,063 151,903
--------------- ---------------
Total liabilities and shareholders' equity............................. $ 3,244,200 $ 2,940,907
=============== ===============
</TABLE>
(1) Share information has been restated to fully reflect the 3-for-2 stock
split effective January 23, 1997 and the 4-for-3 stock split effective July
24, 1997.
6
<PAGE>
NEW YORK BANCORP INC. AND SUBSIDIARY
----- SELECTED FINANCIAL DATA-----
(UNAUDITED)
<TABLE>
<CAPTION>
Three Months Ended Year Ended
September 30, September 30,
-------------------------- ----------------------
1997 1996 1997 1996
---------- ---------- ---------- -------
(Dollars in Thousands, except per share amounts)
<S> <C> <C> <C> <C>
FINANCIAL RATIOS (1)
Average Yield:
First mortgage loans................................. 8.33% 8.00% 8.25% 8.07%
Other loans.......................................... 8.63 8.69 8.59 8.79
Mortgage-backed securities........................... 6.95 6.64 6.87 6.66
Debt and equity securities - taxable................. 6.73 6.67 6.90 6.44
Money market investments............................. 5.76 5.26 5.41 5.36
Trading account securities........................... N/A N/A N/A 5.70
All interest-earning assets........................ 7.85 7.60 7.78 7.63
Average cost:
Deposits............................................. 3.27 3.31 3.27 3.47
Borrowed funds....................................... 5.81 5.34 5.42 5.62
All interest-bearing liabilities................... 4.38 4.04 4.16 4.16
Net interest rate spread................................ 3.47 3.56 3.62 3.47
Net interest margin..................................... 3.70 3.77 3.85 3.71
Average interest-earning assets to
average interest-bearing liabilities................... 105.69 105.62 105.83 105.86
Return on average assets................................ 1.70 .74 1.64 1.16
Return on average common equity......................... 32.63 13.76 31.48 20.26
Efficiency ratio........................................ 39.84 41.85 38.57 42.96
General and administrative expense to average assets.... 1.57 1.68 1.60 1.72
Equity to asset ratio at September 30................... 5.21 5.17 5.21 5.17
Cumulative one year gap as a percent of total
interest-earning assets at September 30................ -8.2% -2.9% -8.2% -2.9%
SHARE INFORMATION (2):
Earnings per common share............................ $ .62 $ .23 $ 2.25 $ 1.34
Weighted average number of common shares
and equivalents outstanding......................... 22,806,867 23,085,298 22,427,486 23,888,786
Number of shares outstanding at September 30......... 21,318,644 22,197,600 21,318,644 22,197,600
Book value per share at September 30................. $ 7.93 $ 6.84 $ 7.93 $ 6.84
NET INTEREST POSITION:
Excess of average interest-earning assets
over average interest-bearing liabilities........... $ 171,279 $ 152,249 $ 169,096 $ 150,520
LOAN HIGHLIGHTS:
Loan originations.................................... $ 119,115 $ 111,382 $ 544,407 $ 425,095
Loan purchases....................................... $ 3,477 $ 21,442 $ 22,391 $ 205,959
Loan sales........................................... $ 9,860 $ 35,276 $ 46,081 $ 77,472
Loans serviced for others at September 30............ $ 579,812 $ 597,017 $ 579,812 $ 597,017
Loan servicing fees.................................. $ 417 $ 435 $ 1,706 $ 1,722
ADJUSTABLE RATE ASSETS AT SEPTEMBER 30:
First mortgage loans and
mortgage-backed securities.......................... $ 1,602,958 $ 1,415,613 $ 1,602,958 $ 1,415,613
Other loans, money market investments,
and debt and equity securities...................... $ 223,538 $ 239,952 $ 223,538 $ 239,952
Total adjustable rate assets as a percent
of total interest-earning assets.................. 57.44% 57.50% 57.44% 57.50%
</TABLE>
(1) Selected financial ratios were computed using daily average balances and
annualized, where applicable.
(2) Share and per share information have been restated to fully reflect the
3-for-2 stock split effective January 23, 1997 and the 4-for-3 stock split
effective July 24, 1997.
7
