EXHIBIT 99.1
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PRESS RELEASE DATED OCTOBER 30, 2000
NEW EARNINGS RECORDS SET FOR 3rd-Q & 9-MONTH PERIODS;
21% EPS GAIN PACES 32nd CONSECUTIVE QUARTERLY ADVANCE
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New York, N.Y., October 30, 2000 -- A 16% increase in net income and a 21% rise
in earnings per share, diluted, in the three months ended September 30th, 2000,
highlighted the 32nd consecutive quarter-to-comparable-quarter of record
earnings for the bank. Mr. Spencer B. Witty, Chairman, Merchants New York
Bancorp, Inc. (NASDAQ: NMS: MBNY), attributed the gains to quality loan growth,
greater investment income, a contribution by the bank's asset-based lending
subsidiary, and effective cost controls.
For the 3rd quarter, net earnings rose to $6.4 million or $0.34 per share,
diluted, up from the then-record $5.5 million or $0.28 per share, diluted, in
the 1999 3rd quarter. Over the first nine months, net earnings climbed 18.5% to
$17.4 million or $0.93 per share, diluted, compared to a then-record $14.7
million or $0.76 per share, diluted, in the 1999 period. On a per-share basis
the gain was 22%.
Mr. Witty said "We are quite pleased with the performances of our lending
operation, especially in a very competitive marketplace and in light of concerns
over the economy, the market, and on interest rates." Merchants paid its 269th
consecutive quarterly cash dividend on September 27th. The dividend has never
been skipped or cut since inception in 1932, a record that is unmatched,
unrivaled, and ongoing.
Merchants Bank has increased its payout 47 times since 1950, also a unique
distinction. Mr. Witty also cited the bank's debt-free Balance Sheet and Blue
Ribbon bank rating, and, said that "Our capital ratios are more than double
those regulators require, to assure depositors of our safety and soundness."
On September 5th, 2000 Merchants announced it had entered into a definitive
merger agreement with Valley National Bancorp (NYSE: VLY), Wayne, New Jersey.
The merger is expected to close in the first quarter of 2001. Mr. Witty said "if
the merger is concluded there will be no changes at Merchants Bank. We will keep
the name Merchants Bank of New York and will operate as a Division of Valley
National Bank. Our clients will receive the same attention from the same people
they are accustomed to dealing with."
Mr. Witty concluded, "The "Good Old Bank" continues and its motto remains: "The
Safety of the Depositors comes first -- earnings will inevitably follow."
<PAGE>
The foregoing contains forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. Such statements are not
historical facts and include expressions about management's confidence and
strategies and management's expectations about new and existing programs and
products, relationships, opportunities, technology and market conditions. These
statements may be identified by such forward-looking terminology as "expect",
"look", "believe", "anticipate", "may", "will", or similar statements or
variations of such terms. Such forward-looking statements involve certain risks
and uncertainties. These include, but are not limited to, the direction of
interest rates, continued levels of loan quality and origination volume,
continued relationships with major customers including sources for loans, as
well as the effects of economic conditions and legal and regulatory barriers and
structure. Actual results may differ materially from such forward-looking
statements. Merchants New York Bancorp assumes no obligation for updating any
such forward-looking statements at any time.
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<PAGE>
MERCHANTS NEW YORK BANCORP
Consolidated Financial Summary Highlights
For the Three- and Nine-Months Ended September 30,
<TABLE>
<CAPTION>
Third Quarter 2000 1999 %
------------- ---- ---- ---
<S> <C> <C> <C>
Total Interest Income $27,396,006 $23,095,579 18.62
Total Interest Expense 13,225,556 10,031,339 31.84
Provision for Loan Losses 850,000 615,000 38.21
Non-Interest Income 1,891,075 1,734,780 9.01
Non-Interest Expense 5,993,454 6,219,919 (3.64)
Net Income 6,384,583 5,500,571 16.07
Earnings Per Share:
Basic $0.34 $0.29 17.2
Diluted $0.34 $0.28 21.4
Avg. Common Shares Outstanding (ACSO): *
Basic 18,646,173 19,248,304
Diluted 18,701,131 19,355,734
<CAPTION>
Nine Months
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Total Interest Income $79,088,659 $65,776,375 20.24
Total Interest Expense 36,253,725 28,395,111 27.68
Provision for Loan Losses 2,475,000 1,215,000 103.70
Non-Interest Income 5,492,399 4,767,932 15.2
Non-Interest Expense 19,641,677 19,083,486 2.93
Net Income 17,391,784 14,673,689 18.52
Dividends Paid 7,034,301 6,278,808 12.03
Earnings Per Share:
Basic $0.93 $0.76 22.4
Diluted $0.93 $0.76 22.4
ACSO: *Basic 18,740,627 19,310,356
Diluted 18,800,664 19,403,948
<CAPTION>
Selected Data at Sept. 30, 2000 1999 %
-------------------------- ---- ---- ---
Total Assets $1,439,849,141 $ 1,349,862,138 6.6%
Total Earning Assets 1,372,437,865 1,280,570,691 7.2%
Allowance for Loan Losses
to Total Loans 1.88% 1.84%
Return on Avg. Assets 1.68% 1.53%
Return on Avg. Equity:
w/o Security Valuation 21.91% 18.67%
w/ Security Valuation 23.92% 17.71%
Leverage 7.55% 8.24%
Risk-Based Capital: Tier 1 13.76% 16.0%
Total 15.01% 17.25%
</TABLE>
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* All Per-Share figures reflect 2:1 stock split implemented Oct. 1, 1999.
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