UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
[ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 1995
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
------------- -------------
Commission file number 0-17515
COLLECTIVE BANCORP, INC.
(Exact name of registrant as specified in its charter)
Delaware 22-2942769
(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification No.)
716 West White Horse Pike
Cologne , New Jersey 08213
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (609) 625-1110
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 [ ]
APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDINGS DURING THE PRECEDING FIVE YEARS
Indicate by check mark whether the registrant has filed all documents and
reports required to be filed by Sections 12, 13 or 15(d) of the Securities
Exchange Act of 1934 subsequent to the distribution of securities under a plan
confirmed by a court.
Yes [ ] No [ ]
APPLICABLE ONLY TO CORPORATE ISSUERS
Indicate the number of shares outstanding of each of the issuer's classes
of common stock, as of the latest practicable date.
Common stock, par value $.01 per share, 20,361,668 shares outstanding as of
September 30, 1995.
<PAGE>
PART I
Item I
COLLECTIVE BANCORP, INC. AND SUBSIDIARY
STATEMENTS OF CONSOLIDATED FINANCIAL CONDITION
<TABLE>
<CAPTION>
September 30 June 30
1995 1995
-------------- ---------------
<S> <C> <C>
ASSETS (Dollar amounts in thousands)
Cash $ $ 66,256
54,686
Federal funds sold 3,770 3,717
-------------- ---------------
Total cash and cash equivalents 58,456 69,973
Trading securities, at market value - 13,328
Loans held for sale, at amortized cost (market
value of $11,120 and $5,836) 11,036 5,815
Securities available for sale, at market value 110,451 113,635
Investment securities, at amortized cost (market
value of $251,043 and $317,221) 250,164 315,879
Loans receivable, net 2,409,273 2,373,706
Mortgage-backed securities, at amortized cost
(market value of $1,989,166 and $2,027,783) 2,058,187 2,100,344
Real estate acquired in settlement of loans, net 5,215 6,476
Land, office buildings and equipment, net 39,688 39,313
Other assets 56,004 43,072
Core deposit premium 10,166 10,873
Goodwill 17,606 18,103
-------------- ---------------
Total assets $5,026,246 $5,110,517
============== ===============
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Demand deposits, non-interest bearing $ $ 76,705
75,703
Demand deposits, interest bearing 453,848 451,350
Savings and investment accounts 819,498 833,041
Savings certificates 1,836,533 1,916,727
-------------- ---------------
Total deposits 3,185,582 3,277,823
Federal Home Loan Bank advances - 395,000
Other borrowed funds 1,450,577 1,052,920
Payable to brokers for securities purchased - 7,600
Advance payments by borrowers for taxes and insurance 26,768 29,462
Other liabilities 25,814 19,920
-------------- ---------------
Total liabilities 4,688,741 4,782,725
-------------- ---------------
Stockholders' Equity:
Common stock, par value $.01 per share; authorized 37,000,000 shares;
issued and outstanding 20,361,668 shares in September 1995 and
20,356,768 shares in June 1995 204 204
Preferred stock, par value $.01 per share;
authorized-2,500,000 shares; none outstanding - -
Additional paid-in capital 59,361 59,299
ESOP debt (6,623) (6,892)
Securities valuation 2,394 2,136
Retained earnings, substantially restricted 282,169 273,045
-------------- ---------------
Total stockholders' equity 337,505 327,792
-------------- ---------------
Total liabilities and stockholders' equity $5,026,246 $5,110,517
============== ===============
</TABLE>
2
<PAGE>
COLLECTIVE BANCORP, INC. AND SUBSIDIARY
STATEMENTS OF CONSOLIDATED OPERATIONS
<TABLE>
<CAPTION>
Three Months Ended
September 30
1995 1994
------------- --------------
<S> <C> <C>
(Dollar amounts in thousands except per share data)
INTEREST AND DIVIDEND INCOME:
Interest on mortgage loans $42,873 $32,547
Interest on other loans 4,143 4,314
Interest on mortgage-backed securities 36,165 37,630
Interest and dividends on investments 5,687 5,397
------------- --------------
Total interest and dividend income 88,868 79,888
------------- --------------
INTEREST EXPENSE:
Interest on deposits 33,279 25,626
Interest on Federal Home Loan Bank
advances and other borrowed funds 21,884 16,063
------------- --------------
Total interest expense 55,163 41,689
------------- --------------
Net interest income before provision for loan losses 33,705 38,199
Provision for loan losses 286 235
------------- --------------
Net interest income after provision for loan losses 33,419 37,964
------------- --------------
OTHER INCOME:
Loan servicing 950 1,025
Gain (loss) on sale of loans and securities 634 (243)
Financial service fees and other income 2,465 1,669
------------- --------------
Total other income 4,049 2,451
------------- --------------
Total income before other expense 37,468 40,415
------------- --------------
OTHER EXPENSE:
Compensation and employee benefits 6,979 6,607
Occupancy expense 2,679 2,374
Advertising 255 269
Deposit insurance 1,424 1,645
Computer services 1,242 1,084
Loan expense 715 591
Real estate operations (24) (461)
Amortization of intangibles 1,205 1,035
Other expenses 2,477 2,428
------------- --------------
Total other expense 16,952 15,572
------------- --------------
INCOME BEFORE INCOME TAXES 20,516 24,843
INCOME TAXES 7,319 8,854
------------- --------------
NET INCOME $13,197 $15,989
============= ==============
PER SHARE DATA:
Primary and fully diluted net income per share $0.65 $0.78
Dividends per common share $0.20 $0.15
Average primary shares outstanding 20,430,540 20,565,859
Average fully diluted shares outstanding 20,444,438 20,577,296
</TABLE>
3
<PAGE>
COLLECTIVE BANCORP, INC. AND SUBSIDIARY
STATEMENTS OF CONSOLIDATED STOCKHOLDERS' EQUITY
<TABLE>
<CAPTION>
Additonal
Common Paid-In ESOP Securities Retained
Stock Capital Debt Valuation Earnings Total
-----------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
(Dollar amounts in thousands)
BALANCE JUNE 30, 1994 $203 $58,618 $(7,800) - $228,707 $279,728
Net income for the year - - - - 57,542 57,542
Stock options exercised 1 681 - - - 682
Dividends on common
stock - $.65 per share - - - - (13,204) (13,204)
ESOP debt repayment - - 908 - - 908
Securities valuation - - - $2,136 - 2,136
-----------------------------------------------------------------------------------
BALANCE JUNE 30, 1995 204 59,299 (6,892) 2,136 273,045 327,792
Net income fiscal year to date - - - - 13,197 13,197
Stock options exercised - 62 - - - 62
Dividends on common
stock - $.20 per share - - - - (4,073) (4,073)
ESOP debt repayment - - 269 - - 269
Securities valuation - - - 258 - 258
-----------------------------------------------------------------------------------
BALANCE SEPTEMBER 30, 1995 $204 $59,361 $(6,623) $2,394 $282,169 $337,505
===================================================================================
</TABLE>
4
<PAGE>
COLLECTIVE BANCORP, INC. AND SUBSIDIARY
STATEMENTS OF CONSOLIDATED CASH FLOWS
<TABLE>
<CAPTION>
Three Months Ended
September 30
------------------------------
1995 1994
------------ ------------
<S> <C> <C>
OPERATING ACTIVITIES: (Dollar amounts in
thousands)
Interest received $86,222 $73,837
Interest paid (54,846) (40,956)
Operating expenses (15,004) (16,888)
Sales of trading securities 43,121 12,305
Loan fees 1,457 1,269
Loans originated for sale (39,088) (14,880)
Sales of loans held for sale 33,866 16,046
Securitization of loans held for sale (30,333) (12,305)
Repayment of principal on trading securities 541 -
Other income received 4,049 2,451
Income taxes paid - (5,344)
----------- ------------
Net cash provided by operating activities 29,985 15,535
------------ -------------
INVESTING ACTIVITIES:
Loan originations (94,167) (173,841)
Purchases of loans (13,874) (5,780)
Purchases of mortgage-backed securities - 68
Repayment of loan principal 72,460 74,752
Repayment of mortgage-backed security principal 42,834 78,126
Purchases of investment securities (22,030) (70,345)
Sales of investment securities available for sale - 9,355
Repayment of principal on mortgage-backed securities available for sale 3,356 8,358
Maturities of investment securities 80,149 4,664
Net decrease in real estate owned 1,261 298
Other investing, net (12,882) (2,685)
------------ ------------
Net cash provided by (used for) investing activities 57,107 (77,030)
------------ ------------
FINANCING ACTIVITIES:
Net change in deposits (92,242) (10,036)
Net change in Federal Home Loan Bank advances (395,000) 183,000
Net change in other borrowed funds 397,657 (117,692)
Net decrease in advance payments by borrowers
for taxes and insurance (2,694) (200)
Dividends paid (4,073) (3,040)
Other financing, net (2,257) 369
------------ ------------
Net cash (used for) provided by financing activities (98,609) 52,401
------------ ------------
NET DECREASE IN CASH AND CASH EQUIVALENTS (11,517) (9,094)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 69,973 70,950
------------ ------------
CASH AND CASH EQUIVALENTS, END OF PERIOD $58,456 $61,856
============ ============
RECONCILIATION OF NET INCOME TO NET CASH PROVIDED
BY OPERATING ACTIVITIES:
Net income $ 13,197 $15,989
Net change in trading securities 13,328 -
Net change in loans held for sale (5,221) 1,166
Amortization and accretion of deferred charges and credits, net (511) (614)
Amortization of intangibles 1,205 1,035
Accrued income and expense 8,343 1,855
Deferred income and expense (2,054) (5,367)
Provision for loan and real estate owned losses 271 251
Depreciation and amortization 1,158 1,007
ESOP debt repayment 269 213
------------ ------------
Net cash provided by operations $29,985 $15,535
============ ============
</TABLE>
5
<PAGE>
COLLECTIVE BANCORP, INC. AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. The unaudited interim consolidated financial statements of Collective
Bancorp, Inc. and subsidiary ("Collective") included herein should be read
in conjunction with the audited financial statements for the year ended
June 30, 1995 included in Collective's 1995 Annual Report and incorporated
by reference in the Form 10-K for the year then ended. The unaudited
interim financial statements reflect all adjustments which are, in the
opinion of management, necessary for a fair presentation of the results for
the periods presented. Such adjustments consist only of normal recurring
accruals. The results of operations for the three-month period ended
September 30, 1995 are not necessarily indicative of the results to be
expected for the fiscal year ending June 30, 1996.
2. Legislation pending in Congress would impose a one-time assessment of
between 85 and 90 basis points on the amount of deposits held by
SAIF-member institutions, including Collective Bank, a wholly-owned
subsidiary of Collective, to recapitalize the SAIF fund to the required
level of 1.25% of insured deposits and is expected to be payable in the
fourth quarter of 1995 or the first quarter of 1996. If the assessment is
made at the 85 basis point proposed rate, the effect on Collective Bank
would be a pre-tax charge of approximately $22 million or $14 million after
tax (36% assumed tax rate).
6
<PAGE>
Item 2
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
General Financial Institution Legislation and Regulation
Collective's primary subsidiary, Collective Bank (the "Bank"),
is subject to extensive regulation, supervision and examination by the Office of
Thrift Supervision ("OTS"), as its chartering authority and primary federal
regulator, and by the Federal Deposit Insurance Corporation ("FDIC"), which
insures its deposits up to applicable limits. Such regulation and supervision
establish a comprehensive framework of activities in which an institution can
engage and are intended primarily for the protection of the insurance fund and
depositors. The regulatory structure also gives the regulatory authorities
extensive discretion in connection with their supervisory and enforcement
activities. Any change in such regulation, whether by the OTS, FDIC or the
Congress, could have a material impact on the Bank and its operations.
Assets
Total assets decreased $84 million during the three months ended
September 30, 1995. The decline, primarily in interest-earning assets, resulted
from accelerated repayments of certain investment securities. The repayment
proceeds were used to pay maturing certificates of deposit.
Cash and cash equivalents decreased $12 million from June 30, 1995 as
cash used for financing activities exceeded cash provided by operating and
investing activities. Trading securities decreased $13 million during the period
as the fiscal 1995 year-end inventory of originated, securitized loans was sold.
Investment securities decreased $66 million from June 30, 1995. The
decrease resulted from maturities and repayments of U.S. agency securities of
$80 million, partially offset by other investment purchases. Many of these
securities were redeemed as the issuing agencies exercised call options during
the current period. Loans receivable, net increased $36 million as loan
originations and purchases exceeded loan repayments. Mortgage-backed securities
decreased $43 million from principal repayments. No mortgage-backed securities
were purchased during the current quarter.
Collective has the positive intent and ability to hold its investment
and mortgage-backed securities portfolios to maturity under all foreseeable
economic conditions. Therefore, it is not expected that any gains or losses will
be realized. In recent years, since authoritative guidance and/or accounting
standards have been developed for the definitive classification of securities,
Collective has not sold securities from its held-to-maturity portfolios.
Collective has always been able to satisfy its liquidity needs from the cash
flows from operating and financing activities, and there is no present
indication that Collective will not be able to do so in the future. Unrealized
gains or losses in Collective's held-to-maturity securities portfolios are
primarily a function of the interest-rate environment at any given point in time
and, therefore, are only temporary in nature. If presently unforeseen economic
conditions should result in the sale of these securities at some future date,
any realized gain or loss will be determined by their market value when sold.
Other assets increased $13 million from June 30, 1995, primarily as the
result of a receivable from brokers for trading securities sold in September
1995. This receivable was collected in October 1995.
Liabilities
Deposits decreased $92 million during the three months ended September
30, 1995. The decrease was comprised of an increase in demand deposits of $1
million and decreases in savings and investment accounts and savings
certificates of $14 million and $79 million, respectively. The decrease in
savings and investment accounts occurred as depositors sought alternative
investment vehicles with higher yields.
7
<PAGE>
During the three months ended September 30, 1995, Collective continued
its effort to retain maturing deposits through the use of special products, such
as 9, 15, 18 and 21-month savings certificates at attractive rates. During this
period, deposits in those categories increased by $59 million. Offsetting those
increases were reductions in other retail certificates of deposit of $66 million
as customers transferred funds to the special product offerings. The three-month
period also reflected reductions in certificates in excess of $100,000 of $72
million. Collective had offered attractive rates in this category during the
quarter ended June 30, 1995 as a less expensive source of funds compared to
short-term borrowings to fund asset additions. Those rates were not continued in
the current quarter.
Federal Home Loan Bank advances decreased $395 million and other
borrowed funds increased $398 million during the three months ended September
30, 1995. The shift in the source of borrowed funds occurred because reverse
repurchase agreements became a more attractive borrowing vehicle to Collective
than FHLB advances. Advance payments by borrowers for taxes and insurance
decreased $3 million during the three months ended September 30, 1995 primarily
from annual tax payments in July 1995 on certain out-of-state mortgage loans.
The increase in other liabilities of $6 million from June 30, 1995 to September
30, 1995 is attributable to a change in the estimated payment date for federal
income taxes as a result of a change in Collective's tax year from a calendar
year to a June 30 fiscal year. Unlike other quarters, the estimated tax payment
for the September 1995 quarter was not required until October 16, 1995.
Stockholders' Equity
Retained earnings increased $9 million during the period primarily as a
result of net earnings of $13 million, less dividends on common stock of $4
million.
Liquidity and Capital Resources
The Bank is required by regulation to maintain certain levels of
liquidity. Regulations currently in effect require the Bank to maintain liquid
assets of not less than 5% of its net withdrawable deposits and short-term
borrowings, of which at least 1% must be short-term liquid assets. Throughout
the three months ended September 30, 1995, the Bank was in compliance with that
regulation and at that date had an overall liquidity ratio of 5.43% and a
short-term ratio of 2.33%.
At September 30, 1995, capital resources were sufficient to meet
outstanding loan origination commitments of $128 million and commitments on
unused lines of credit of $85 million. Loans originated or purchased during the
three months ended September 30, 1995 were funded from normal sources including
the amortization of the existing loan and mortgage-backed securities portfolios
and borrowings.
The Bank is subject to capital requirements mandated by the Financial
Institutions Reform, Recovery and Enforcement Act ("FIRREA"). Under FIRREA,
thrift institutions must have tangible capital equal to 1.5% of tangible assets,
core capital equal to 3% of adjusted tangible assets and risk-based capital
equal to 8% of risk-weighted assets. At September 30, 1995, the Bank exceeded
those requirements as follows:
<TABLE>
<CAPTION>
<S> <C> <C>
Tangible Capital: (In Thousands) Percent
------------- -------
Actual $ 313,501 6.27%
Required 74,964 1.50%
------------- -------
Excess $ 238,537 4.77%
------------- -------
Core Capital:
Actual $ 313,501 6.27%
Required 149,928 3.00%
------------- -------
Excess $ 163,573 3.27%
------------- -------
Risk-based capital:
Actual $ 321,139 16.88%
Required 152,191 8.00%
------------- -------
Excess $ 168,948 8.88%
------------- -------
</TABLE>
8
<PAGE>
Three Months Ended September 30, 1995 Compared to
Three Months Ended September 30, 1994
Collective's net income is determined primarily by the margin between
the earnings on its investment, loan and mortgage-backed securities portfolios
and the interest paid on its deposits and borrowings. Other primary factors in
determining Collective's profitability are its levels of other income and
operating expenses.
Net income for the three months ended September 30, 1995 decreased by
17% compared to net income for the three months ended September 30, 1994. The
decrease in net income was comprised of a 12% decrease in net interest income
after provision for loan losses, a 65% increase in other income, a 9% increase
in other expense and a 17% decrease in income taxes.
The reduction in net interest income resulted from a decrease in net
interest margin from 3.35% for the 1994 period to 2.82% for the 1995 period,
partially offset by a $325 million increase in average interest-earning assets.
The decrease in net interest margin was comprised of a 29 basis point
improvement in the yield on interest-earning assets and an 82 basis point
increase in cost of funds. The increase in the yield on interest-earning assets
was the result of an increase in the yield on adjustable-rate mortgage loans,
approximating 59 basis points, because of higher short-term interest rates
during the 1995 period. Although long-term interest rates were lower in the 1995
quarter, the yield on Collective's fixed-rate earning asset portfolio did not
decrease proportionately to the rise in yield on the adjustable rate asset
portfolio because of their different repricing characteristics. Higher
short-term interest rates during the current period, although partially offset
by an increase in the amount of lower-cost core deposits, resulted in the
increase in the cost of funds. The increase in interest-earning assets partially
offset the effect on net interest income of the declining net interest margin.
The growth in average interest-earning assets was comprised of a $415 million
increase in loans receivable offset by decreases in mortgage-backed securities
and investment securities of $80 million and $10 million, respectively.
Collective's net interest income tends to increase in periods of
declining interest rates because its interest-bearing liabilities generally
reprice faster than its interest-earning assets. (See the "Maturity and Rate
Sensitivity Analysis", page 10.) Conversely, Collective's net interest income
tends to decrease in periods of rising interest rates. The higher short-term
interest rates discussed above, combined with a flatter yield curve, when
compared to the three months ended September 30, 1994, caused the reduced net
interest margin mentioned above.
The increase in other income resulted primarily from increased fee
income from the growth in demand deposit balances and a more aggressive strategy
in charging and collecting fees related to deposit accounts. The recent decline
in longer-term interest rates and the increase in trading account activity as
Collective securitized and sold a higher percentage of loans originated
contributed to the increase in gains recorded on the sale of loans and
securities. Sales of trading securities totaled $43 million during the three
months ended September 30, 1995 compared to $12 million in the three months
ended September 30, 1994. During the three months ended September 30, 1995, the
amount of current loan originations that met the criteria for long-term
investment declined to 71% compared to 92% of originations for the three months
ended September 30, 1994.
The increase in other expense is attributable to the operation of
additional deposit offices acquired from Sovereign Bancorp, Inc. in 1995.
Despite that increase, operating expenses as a percentage of average assets
declined from 1.26% for the three months ended September 30, 1994 to 1.24% for
the three months ended September 30, 1995, largely because of the increased
asset base in 1995.
The decrease in income taxes resulted from reduced pre-tax income. The
effective income tax rate was 35.7% for the three months ended September 30,
1995 compared to 35.6% for the three months ended September 30, 1994.
9
<PAGE>
COLLECTIVE BANCORP, INC. AND SUBSIDIARY
MATURITY AND RATE SENSITIVITY ANALYSIS (1)
<TABLE>
<CAPTION>
September 30, 1995
--------------- --------------- ---------------- ----------------
1 Year 1 Year Over
or Less to 5 Years 5 Years Total
--------------- --------------- ---------------- ----------------
<S> <C> <C> <C> <C>
Assets: (Dollar amounts in thousands)
Mortgage loans:
Balloon and adjustable rate first
mortgages $ 767,559 $ 290,384 $ 272,636 $ 1,330,579
Fixed rate mortgages 209,978 (2) 322,545 373,052 905,575
Mortgage-backed securities 371,584 (3) 1,205,996 554,824 2,132,404
Consumer and commercial loans 148,895 33,769 1,491 184,155
Federal funds sold 3,770 - - 3,770
Investment securities 285,935 (4) - 463 286,398
--------------- --------------- ---------------- ----------------
Total rate sensitive assets $ 1,787,721 $ 1,852,694 $ 1,202,466 $ 4,842,881
=============== =============== ================ ================
Liabilities:
Fixed maturity deposits $ 1,364,894 $ 453,885 $ 17,754 $ 1,836,533
NOW accounts - 453,848 - 453,848
Money market demand accounts 267,325 - - 267,325
Passbook accounts 102,536 231,075 218,562 552,173
Other borrowings 1,450,577 - - 1,450,577
--------------- --------------- ---------------- ----------------
Total rate sensitive liabilities $ 3,185,332 $ 1,138,808 $ 236,316 $ 4,560,456
=============== =============== ================ ================
Dollar gap (5) $ (1,397,611) $ 713,886 $ 966,150 $ 282,425
=============== =============== ================ ================
<FN>
(1) As presented in this table, Collective calculates interest rate sensitivity
information employing techniques developed by the Office of Thrift
Supervision.
(2) Includes $11,036 of loans classified as held for sale.
(3) Includes $74,217 of mortgage-backed securities classified as available for sale.
(4) Includes $36,234 of securities classified as available for sale.
(5) Rate sensitive assets less rate sensitive liabilities.
</FN>
</TABLE>
PART II
Item 6. Exhibits and Reports on Form 8-K
(a) (11) Statement Re Computation of Per Share Earnings
(27) Financial Data Schedule
(b) On August 21, 1995, Collective Bancorp, Inc. filed a Form 8-K reporting
a change in certifying accountant. Such Form 8-K was amended on August
31, 1995 and September 7, 1995.
10
<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.
COLLECTIVE BANCORP, INC.
EDWARD J. MCCOLGAN
Date November 13, 1995 -------------------------------
Edward J. McColgan
Vice Chairman & Chief Financial Officer
BERNARD H.BERKMAN
Date November 13, 1995 -------------------------------
Bernard H.Berkman
Executive Vice President & Chief Accounting Officer
11
COLLECTIVE BANCORP, INC.
COMPUTATION OF EARNINGS PER SHARE OF COMMON STOCK
<TABLE>
<CAPTION>
Three Months Ended
September 30
PRIMARY 1995 1994
----------------------------------------------
<S> <C> <C>
EARNINGS:
Net Income.............................................. $13,197,324 $15,988,558
==============================================
SHARES:
Weighted average number of
common shares outstanding............................. 20,143,166 20,266,000
Assuming exercise of options reduced by the number of shares which could have
been purchased with the proceeds from exercise
of such options (1)................................... 287,374 299,859
----------------------------------------------
Weighted average number of common
shares outstanding as adjusted........................ 20,430,540 20,565,859
==============================================
Primary earnings per share of
common stock.......................................... $0.65 $0.78
==============================================
ASSUMING FULL DILUTION
EARNINGS:
Net Income.............................................. $13,197,324 $15,988,558
==============================================
SHARES:
Weighted average number of
common shares outstanding............................. 20,143,166 20,266,000
Assuming exercise of options reduced by the number of shares which could have
been purchased with the proceeds from exercise
of such options (2)................................... 301,272 311,296
----------------------------------------------
Weighted average number of common
shares outstanding as adjusted........................ 20,444,438 20,577,296
==============================================
Fully diluted earnings per share of
common stock.......................................... $0.65 $0.78
==============================================
<FN>
(1) Assumes the proceeds obtained from the exercise of options were used to
purchase common shares at the average market price during the quarter.
(2) Assumes the proceeds obtained from the exercise of stock options were used
to purchase common shares at the market price at the close of the quarter if
such price was higher than the average price during the quarter.
</FN>
12
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 9
<LEGEND>
This schedule contains summary financial information extracted from the Statements
of Consolidated Financial Condition as of September 30, 1995 (Unaudited) and the
Statements of Consolidated Operations for the three months ended September 30, 1995
(Unaudited) and is qualified in its entirety by reference to such financial
statements.
</LEGEND>
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 3-mos
<FISCAL-YEAR-END> JUN-30-1996
<PERIOD-START> JUL-01-1995
<PERIOD-END> SEP-30-1995
<CASH> 54686
<INT-BEARING-DEPOSITS> 0
<FED-FUNDS-SOLD> 3770
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 121487
<INVESTMENTS-CARRYING> 2308351
<INVESTMENTS-MARKET> 2240209
<LOANS> 2409273
<ALLOWANCE> 0
<TOTAL-ASSETS> 5026246
<DEPOSITS> 3185582
<SHORT-TERM> 1450576
<LIABILITIES-OTHER> 52583
<LONG-TERM> 0
<COMMON> 204
0
0
<OTHER-SE> 337301
<TOTAL-LIABILITIES-AND-EQUITY>5026246
<INTEREST-LOAN> 47016
<INTEREST-INVEST> 41852
<INTEREST-OTHER> 0
<INTEREST-TOTAL> 88868
<INTEREST-DEPOSIT> 33279
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</TABLE>
