[Haven Bancorp Logo] Filed by Haven Bancorp, Inc. pusuant to
Rule 425 promulgated under the
Securities Act of 1933, as amended,
and deemed filed pursuant to Rule 14a-
12 of the Securities Exchange Act of
1934, as amended
Subject Company: Queens County
Bancorp, Inc.
Registration No. 333-42980
FOR IMMEDIATE RELEASE: October 19, 2000
CONTACTS: Catherine Califano, S.V.P. /C.F.O., Haven Bancorp
Tel. (516) 683-4483
Annette Esposito, F.V.P./Communications Director, Haven Bancorp
Tel. (516) 683-4231
HAVEN BANCORP REPORTS THIRD QUARTER RESULTS
Westbury, NY--Haven Bancorp, Inc. (Nasdaq: HAVN), the holding company
for CFS Bank, today reported net income of $7.0 million, or $0.77 per basic
common share ($0.73 per share, diluted) for the third quarter of 2000, compared
to $3.0 million, or $0.34 per basic common share ($0.32 per share, diluted) in
the third quarter of 1999. Net income for the nine months ended September 30,
2000, was $14.2 million, or $1.58 per basic common share ($1.51 per share,
diluted), compared to $8.9 million, or $1.02 per basic common share ($0.97 per
share, diluted) for the first nine months of 1999. Net income for the nine
months ended September 30, 2000, excluding pre-tax restructuring charges, net of
recoveries, totaling $6.9 million taken in the first quarter of 2000, would have
been $18.5 million, or $2.07 per basic common share ($1.97 per share, diluted).
Philip S. Messina, Chairman and Chief Executive Officer, stated, "We
are pleased to report a 138% increase in net income from the third quarter of
1999. This outcome was due to the continued growth in the revenues from our
supermarket branches and the savings realized from the restructuring of our
mortgage operations, the reduction of our workforce and the elimination of
certain other discretionary expenses which began in the first quarter of 2000.
We have experienced two solid and consistent quarters since we restructured
certain of our operations in the first quarter of this year."
"Earnings per share were $0.73 per share, diluted, in the third quarter
of 2000 compared to $0.76 per share, diluted, in the second quarter of 2000. The
third quarter was impacted by an increase in our ESOP compensation expense due
to a 47% increase in Haven's average stock price during the quarter. In
addition, weighted average shares outstanding increased by approximately 225,000
shares due to option exercises during the quarter."
"We look forward to our strategic partnership with Queens County
Bancorp, Inc. A special meeting of Haven stockholders will be held on November
20, 2000 to approve and adopt the Agreement and Plan of Merger with Queens
County. We are confident that the merger of Haven Bancorp with Queens County
offers the greatest value to our shareholders," concluded Messina.
<PAGE>
As of September 30, 2000, the Bank had 62 supermarket branches with
total deposits of $929.3 million, an increase of $21.0 million, or 2.3%, from
$908.3 million at June 30, 2000. Core deposits equaled 46.0% of total
supermarket branch deposits, compared to a ratio of 44.2% in traditional
branches. The total number of core deposit accounts in the supermarket branches
was approximately 193,000 as of September 30, 2000, compared to 182,000 as of
September 30, 1999. Non-interest income from supermarket branches totaled $5.7
million in the third quarter of 2000 compared to $5.4 million in the second
quarter of 2000. Non-interest expense from supermarket branches, including
allocated overhead, has remained stable at $9.1 million in the third and second
quarters of 2000. For the first nine months of 2000, non-interest income from
supermarket branches totaled $15.8 million and non-interest expense from
supermarket branches, including allocated overhead, totaled $27.4 million for
the period.
Net interest income for the third quarter of 2000 was $19.0 million, a
2.5% increase over net interest income of $18.6 million in the third quarter of
1999. The net interest margin in the third quarter of 2000 remained at 2.68%
compared to the third quarter of 1999. For the first nine months of 2000, net
interest income totaled $58.4 million, a 10.9% increase over the $52.7 million
recorded in the first nine months of 1999. The net interest margin for the first
nine months of 2000 was 2.74% compared to 2.78% for the first nine months of
1999.
Commercial and multi-family real estate loan originations for our
portfolio totaled $110.2 million in the third quarter of 2000, compared to $59.2
million originated in the third quarter of 1999. Commercial and multi-family
real estate loan originations for our portfolio totaled $193.1 million in the
first nine months of 2000, compared to $142.6 million originated in the first
nine months of 1999. During the third quarter of 2000, the Bank purchased $77.1
million in multi-family loans from Queens County Savings Bank. Commercial and
multi-family real estate loan originations include $41.1 million of construction
and land loans originated in the first nine months of 2000, compared to $2.1
million for the first nine months of 1999.
Residential real estate loan originations and purchases for our
portfolio totaled $13.1 million in the third quarter of 2000, compared to $203.3
million originated and purchased for portfolio in the third quarter of 1999. In
addition, $1.1 million of residential loans were originated or purchased for
sale in the secondary market during the third quarter of 2000 compared to $153.3
million in the third quarter of 1999. The decrease in loan originations and
purchases for portfolio and for sale in the secondary market was due to the wind
down of the residential mortgage origination operations which began in the
second quarter of 2000. Residential real estate originations and purchases for
our portfolio totaled $72.3 million in the first nine months of 2000 compared to
$481.5 million for the comparable period in 1999. In addition, $131.9 million of
residential loans were originated or purchased for sale in the secondary market
during the first nine months of 2000 compared to $462.3 million in the
comparable period in 1999.
The provision for loan losses in the third quarter of 2000 was $0.6
million compared to $1.0 million in third quarter of 1999. The decrease in the
provision was due to the decrease in the growth of the residential loan
portfolio and the decrease in non-performing loans. The allowance for loan
losses was $17.6 million, or 0.93% of loans, at September 30, 2000 compared to
$16.7 million, or 0.92% of loans, at December 31, 1999. For the first nine
months of 2000, the provision for loan losses totaled $1.7 million compared to
$2.6 million for the first nine months of 1999. Non-performing assets at
September 30, 2000 totaled $7.4 million, or 0.25% of
-2-
<PAGE>
total assets. Non-performing loans, comprised of non-accrual and restructured
loans, were $6.8 million and real estate owned, net, was $0.6 million at
September 30, 2000. At September 30, 1999, non-performing assets totaled $8.7
million, or 0.30% of total assets; non-performing loans totaled $8.2 million and
real estate owned, net, equaled $0.5 million.
In the third quarter of 2000, non-interest income, excluding net gains
on sales of interest-earning assets, increased to $8.8 million, or 17.9%, from
$7.5 million in the third quarter of 1999. The growth in non-interest income
reflects the impact of the continued maturation of our supermarket banking
program. Retail banking fees increased 32.2% in the 2000 third quarter to $5.9
million from $4.5 million in the 1999 third quarter. Insurance, annuity and
mutual fund fees for the third quarter of 2000 increased 6.9% to $2.4 million
from $2.2 million in the 1999 third quarter. Mortgage banking income was $0.1
million in the third quarters of 2000 and 1999, respectively. For the first nine
months of 2000, non-interest income, excluding net gains on sales of
interest-earning assets was $26.0 million, an increase of 14.3% over $22.8
million in the first nine months of 1999. The growth in non-interest income
reflects the impact of the continued maturation of our supermarket banking
program, which was offset by a decrease in mortgage banking income.
Non-interest expense decreased by $4.5 million, or 22.0% to $15.8
million in the third quarter of 2000 compared to $20.3 million for the 1999
third quarter and $17.2 million for the second quarter of 2000. The decrease was
due to the restructuring of the residential mortgage division, the reduction of
the Company's workforce and the elimination of certain discretionary expenses.
For the first nine months of 2000, non-interest expense was $53.5 million,
excluding net restructuring charges, a decrease of 11.2% from $60.2 million in
the same period of 1999.
At September 30, 2000, Haven had total assets of $2.96 billion.
Stockholders' equity was $123.6 million, or $13.23 book value per share,
compared to $105.6 million, or $11.73 book value per share at December 31, 1999.
This increase was primarily due to net income of $14.2 million for the
nine-month period ended September 30, 2000. CFS Bank's tangible, core and
risk-based capital ratios at September 30, 2000, were 6.30%, 6.30% and 13.17%,
respectively. These ratios exceeded the minimum regulatory requirements of
2.00%, 4.00% and 8.00%, respectively. The Bank is considered "well capitalized"
by regulatory standards.
Headquartered in Westbury, New York, Haven Bancorp, Inc. is the holding
company for CFS Bank, a community-oriented institution offering deposit
products, residential and commercial real estate loans and a full range of
financial services including discount brokerage, mutual funds, annuities and
insurance products through eight full-service banking offices and 62 supermarket
branches located in New York City, Nassau, Suffolk, Rockland and Westchester
Counties, New Jersey and Connecticut. Haven provides auto, homeowners and
business lines of insurance through its subsidiary, CFS Insurance Agency, Inc.
The Bank's deposits are insured by the FDIC.
-3-
<PAGE>
HAVEN BANCORP, INC. AND QUEENS COUNTY BANCORP, INC. FILED A JOINT PROXY
STATEMENT/PROSPECTUS DATED OCTOBER 13, 2000 AND OTHER RELEVANT DOCUMENTS
CONCERNING THE MERGER OF THE TWO COMPANIES WITH THE UNITED STATES SECURITIES AND
EXCHANGE COMMISSION (THE "SEC"). WE URGE INVESTORS TO READ THE JOINT PROXY
STATEMENT/PROSPECTUS AND ANY OTHER RELEVANT DOCUMENTS FILED WITH THE SEC,
BECAUSE THEY CONTAIN IMPORTANT INFORMATION.
INVESTORS ARE ABLE TO OBTAIN THESE DOCUMENTS FREE OF CHARGE AT THE SEC'S WEB
SITE (WWW.SEC.GOV). IN ADDITION, DOCUMENTS FILED WITH THE SEC BY HAVEN BANCORP
ARE AVAILABLE FREE OF CHARGE FROM HAVEN BANCORP, 615 MERRICK AVENUE, WESTBURY,
NEW YORK 11590. DOCUMENTS FILED WITH THE SEC BY QUEENS COUNTY BANCORP ARE
AVAILABLE WITHOUT CHARGE FROM THE VICE PRESIDENT, INVESTOR RELATIONS, QUEENS
COUNTY BANCORP, 38-25 MAIN STREET, FLUSHING, NEW YORK 11354.
THE DIRECTORS, EXECUTIVE OFFICERS, AND CERTAIN OTHER MEMBERS OF MANAGEMENT OF
HAVEN BANCORP AND QUEENS COUNTY BANCORP MAY BE SOLICITING PROXIES IN FAVOR OF
THE MERGER FROM THE COMPANIES' RESPECTIVE SHAREHOLDERS. FOR INFORMATION ABOUT
THESE DIRECTORS, EXECUTIVE OFFICERS, AND MEMBERS OF MANAGEMENT, SHAREHOLDERS ARE
ASKED TO REFER TO THE MOST RECENT PROXY STATEMENTS ISSUED BY THE RESPECTIVE
COMPANIES, WHICH ARE AVAILABLE AT THE ADDRESSES PROVIDED IN THE PRECEDING
PARAGRAPH.
SAFE HARBOR PROVISIONS OF THE PRIVATE LITIGATION REFORM ACT OF 1995
STATEMENTS MADE HEREIN THAT ARE FORWARD-LOOKING IN NATURE WITHIN THE MEANING OF
THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995, ARE SUBJECT TO RISKS AND
UNCERTAINTIES THAT COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY. SUCH RISKS
AND UNCERTAINTIES INCLUDE, BUT ARE NOT LIMITED TO, THOSE RELATED TO OVERALL
BUSINESS CONDITIONS, PARTICULARLY IN THE CONSUMER FINANCIAL SERVICES, MORTGAGE
AND INSURANCE MARKETS IN WHICH HAVEN OPERATES, FISCAL AND MONETARY POLICY,
COMPETITIVE PRODUCTS AND PRICING, CREDIT RISK MANAGEMENT, CHANGES IN REGULATIONS
AFFECTING FINANCIAL INSTITUTIONS AND OTHER RISKS AND UNCERTAINTIES DISCUSSED IN
HAVEN'S SEC FILINGS, INCLUDING ITS 1999 FORM 10-K, AS AMENDED. HAVEN DISCLAIMS
ANY OBLIGATION TO PUBLICLY ANNOUNCE FUTURE EVENTS OR DEVELOPMENTS, WHICH MAY
AFFECT THE FORWARD-LOOKING STATEMENTS CONTAINED HEREIN.
-4-
<PAGE>
HAVEN BANCORP, INC.
SELECTED FINANCIAL RATIOS AND SELECTED FINANCIAL DATA
SELECTED FINANCIAL RATIOS
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
September 30, September 30,
---------------------------------- -------------------------------
2000 1999 2000 1999
---------------- ------------- ------------- -------------
(annualized) (annualized)
<S> <C> <C> <C> <C>
Return on average assets 0.94% 0.41% 0.64% 0.44%
Return on average assets
excluding restructuring charges 0.94 0.41 0.83 0.44
Return on average equity 23.89 10.59 17.42 10.19
Return on average equity
excluding restructuring charges 23.89 10.59 22.73 10.19
Net interest spread 2.66 2.62 2.70 2.73
Net interest margin 2.68 2.68 2.74 2.78
Operating expenses to average assets(1) 2.12 2.73 2.39 2.95
</TABLE>
(1) For the purpose of this calculation, operating expenses equal non-interest
expense excluding amortization of goodwill, real estate owned operations, net
and non-performing loan expenses totaling $38,000 and $477,000 for the three
months ended September 30, 2000 and 1999, respectively, and $231,000 and $1.0
million for the nine months ended September 30, 2000 and 1999, respectively.
Also excluded from operating expenses are net restructuring charges of $6.9
million for the nine months ended September 30, 2000.
<TABLE>
<CAPTION>
SEPTEMBER 30, DECEMBER 31,
2000 1999
--------------------- -------------------
<S> <C> <C>
Stockholders' equity to total assets 4.18% 3.56%
Stockholders' equity per share $13.23 $11.73
Non-performing loans to total loans 0.36% 0.42%
Non-performing assets to total assets 0.25 0.27
Allowance for loan losses to non-performing loans 257.23 216.56
Allowance for loan losses to total loans 0.93 0.92
</TABLE>
SELECTED FINANCIAL DATA - RETAIL BRANCHES(1)
TRADITIONAL BRANCHES
8 Branches
<TABLE>
<CAPTION>
September 30, 2000 NUMBER % OF TRADITIONAL
OF ACCOUNTS BALANCE BRANCH DEPOSITS
----------- ------- ---------------
<S> <C> <C> <C>
Total Deposits 168,420 $1,227.0 billion
------- ----------------
Checking 67,346 $ 165.0 million 13.5%
Savings & Money Market 59,842 $ 376.8 million 30.7%
Certificates 41,232 $ 685.2 million 55.8%
Cost of deposits 4.04%
Fee income contribution(2) $2.9 million
</TABLE>
SUPERMARKET BRANCHES
62 Branches
<TABLE>
<CAPTION>
September 30, 2000 NUMBER % OF SUPERMARKET
OF ACCOUNTS BALANCE BRANCH DEPOSITS
----------- ------- ---------------
Total Deposits 221,472 $929.3 million
------- --------------
<S> <C> <C> <C>
Checking 122,871 $115.4 million 12.4%
Savings & Money Market 70,103 $312.5 million 33.6%
Certificates 28,498 $501.4 million 54.0%
Cost of deposits 4.83%
Fee income contribution(2) $5.7 million
</TABLE>
(1) Excludes approximately $3.2 million of deposits held in the administrative
branch.
(2) For the three months ended September 30, 2000.
-5-
<PAGE>
HAVEN BANCORP, INC.
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data)
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
September 30, September 30,
------------- -------------
2000 1999 2000 1999
---- ---- ---- ----
<S> <C> <C> <C> <C>
INTEREST INCOME
Loans $ 34,798 $ 31,339 $103,328 $85,490
Mortgage-backed securities 12,384 12,952 38,034 38,288
Money market investments 120 53 380 122
Debt and equity securities 5,004 4,134 14,153 9,294
-------- -------- -------- -------
Total Interest Income 52,306 48,478 155,895 133,194
-------- -------- -------- -------
INTEREST EXPENSE
Deposits
Savings accounts 4,203 5,114 13,220 14,798
NOW accounts 192 428 863 1,171
Money market accounts 543 430 1,715 1,289
Certificate accounts 17,725 13,554 49,377 37,378
Borrowed funds 10,633 10,400 32,299 25,880
-------- -------- -------- -------
Total Interest Expense 33,296 29,926 97,474 80,516
-------- -------- -------- -------
Net interest income before provision for loan losses 19,010 18,552 58,421 52,678
Provision for loan losses 596 1,035 1,746 2,590
-------- -------- -------- -------
Net interest income after provision for loan losses 18,414 17,517 56,675 50,088
-------- -------- -------- -------
NON-INTEREST INCOME
Loan fees and servicing income 267 528 874 1,455
Mortgage banking income 86 97 1,341 3,042
Retail banking fees 5,911 4,472 16,587 11,416
Net gain on sales of interest-earning assets 146 111 271 1,680
Insurance, annuity and mutual fund fees 2,384 2,231 6,805 6,374
Other 190 170 426 487
-------- -------- -------- -------
Total Non-Interest Income 8,984 7,609 26,304 24,454
-------- -------- -------- -------
NON-INTEREST EXPENSE
Compensation and benefits 8,375 10,917 27,954 32,884
Occupancy and equipment 3,106 3,482 9,871 10,265
REO operations, net (22) 112 (119) (72)
Federal deposit insurance premiums 105 255 333 763
Restructuring charges - - 6,877 -
Other 4,268 5,520 15,411 16,320
-------- -------- -------- -------
Total Non-Interest Expense 15,832 20,286 60,327 60,160
-------- -------- -------- -------
Income before income tax expense 11,566 4,840 22,652 14,382
Income tax expense 4,555 1,890 8,455 5,504
-------- -------- -------- -------
Net income $ 7,011 $ 2,950 $ 14,197 $ 8,878
======== ======== ======== =======
Net income per common share: Basic $ 0.77 $ 0.34 $ 1.58 $ 1.02
======== ======== ======== =======
Diluted $ 0.73 $ 0.32 $ 1.51 $ 0.97
======== ======== ======== =======
</TABLE>
Note: Certain reclassifications have been made to prior period amounts to
conform to the current period presentation.
-6-
<PAGE>
HAVEN BANCORP, INC.
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(In thousands, except for share data)
<TABLE>
<CAPTION>
September 30, December 31,
2000 1999
----------------- ----------------
ASSETS
------
<S> <C> <C>
Cash and due from banks $ 52,308 $ 41,479
Money market investments 15,100 1,238
Securities available for sale 903,750 937,299
Loans held for sale 1,425 82,709
Federal Home Loan Bank of NY Stock 27,865 27,865
Loans receivable:
First mortgage loans 1,855,282 1,777,208
Cooperative apartment loans 5,233 3,669
Other loans 21,421 25,948
----------------- ----------------
Total loans receivable 1,881,936 1,806,825
Less allowance for loan losses (17,586) (16,699)
----------------- ----------------
Loans receivable, net 1,864,350 1,790,126
Premises and equipment, net 33,489 35,928
Accrued interest receivable 15,788 15,825
Other assets 44,801 33,381
----------------- ----------------
Total Assets $ 2,958,876 $ 2,965,850
================= ================
LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------
Liabilities
Deposits $ 2,159,499 $ 2,080,613
Borrowed funds 652,228 749,232
Other liabilities 23,561 30,422
----------------- ----------------
Total Liabilities 2,835,288 2,860,267
----------------- ----------------
Stockholders' Equity:
Preferred stock ($.01 par value, 2,000,000
shares authorized, none issued) - -
Common stock ($.01 par value, 30,000,000 shares
authorized, 9,918,750 issued; 9,343,315 and
9,000,237 outstanding at September 30, 2000 and
December 31, 1999, respectively) 100 100
Additional paid-in capital 54,011 52,336
Retained earnings, substantially restricted 101,937 89,083
Accumulated other comprehensive loss:
Unrealized loss on securities available-
for-sale, net of tax effect (24,170) (25,465)
Treasury stock, at cost (575,435 and 1,059,058 shares
at September 30, 2000 and December 31, 1999, respectively) (6,641) (8,934)
Unallocated common stock held by ESOP (726) (934)
Unearned common stock held by Bank's Recognition
Plans and Trusts (206) (231)
Unearned compensation (717) (372)
----------------- ----------------
Total Stockholders' Equity 123,588 105,583
----------------- ----------------
----------------- ----------------
Total Liabilities and Stockholders' Equity $ 2,958,876 $ 2,965,850
================= ================
Book value per share $ 13.23 $ 11.73
================= ================
</TABLE>
-7-
<PAGE>
HAVEN BANCORP, INC.
CONSOLIDATED AVERAGE BALANCE SHEET - YIELD/RATE ANALYSIS
(Dollars in thousands)
<TABLE>
<CAPTION>
For the
Three Months Ended
------------------
September 30, 2000 September 30, 1999
------------------ ------------------
Average Yield/ Average Yield/
Balance Interest Rate(1) Balance Interest Rate(1)
------- -------- ------- ------- -------- -------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
------
Interest-earning assets
Mortgage loans $1,860,302 $ 34,267 7.37% $ 1,688,701 $30,615 7.25%
Other loans 21,959 531 9.67 39,093 724 7.41
Mortgage-backed securities 691,076 12,384 7.17 800,778 12,952 6.47
Money market investments 13,169 120 3.63 2,717 53 7.80
Debt and equity securities 254,169 5,004 7.88 236,259 4,134 7.00
---------- -------- ----------- -------
Total interest-earning assets 2,840,675 52,306 7.37 2,767,548 48,478 7.01
-------- -------
Non-interest-earning assets 135,661 138,167
---------- -----------
Total assets $2,976,336 $ 2,905,715
========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------
Interest-bearing liabilities
Savings accounts $ 637,743 $ 4,203 2.62% $ 654,038 $ 5,114 3.13%
Certificate accounts 1,174,542 17,725 6.00 1,027,514 13,554 5.28
NOW accounts 282,979 192 0.27 243,768 428 0.70
Money market accounts 64,989 543 3.34 55,249 430 3.11
Borrowed funds 666,311 10,633 6.38 743,586 10,400 5.59
---------- -------- ----------- -------
Total interest-bearing liabilities 2,826,564 33,296 4.71 2,724,155 29,926 4.39
-------- -------
Other liabilities 32,387 70,176
---------- -----------
Total liabilities 2,858,951 2,794,331
Stockholders' equity 117,385 111,384
---------- -----------
Total liabilities and
stockholders' equity $2,976,336 $ 2,905,715
========== ===========
Net interest income $ 19,010 $18,552
======== =======
Net interest spread 2.66% 2.62%
======= =======
Net interest margin 2.68% 2.68%
======= =======
</TABLE>
(1) annualized
-8-
<PAGE>
HAVEN BANCORP, INC.
CONSOLIDATED AVERAGE BALANCE SHEET - YIELD/RATE ANALYSIS
(Dollars in thousands)
<TABLE>
<CAPTION>
For the
Nine Months Ended
-----------------
September 30, 2000 September 30, 1999
------------------ ------------------
Average Yield/ Average Yield/
Balance Interest Rate(1) Balance Interest Rate(1)
------- -------- ------- ------- -------- -------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
------
Interest-earning assets
Mortgage loans $ 1,850,670 $101,722 7.33% $1,517,812 $83,130 7.30%
Other loans 23,630 1,606 9.06 36,769 2,360 8.56
Mortgage-backed securities 713,503 38,034 7.11 784,139 38,288 6.51
Money market investments 10,349 380 4.90 2,149 122 7.57
Debt and equity securities 243,896 14,153 7.74 184,446 9,294 6.72
----------- -------- ---------- -------
Total interest-earning assets 2,842,048 155,895 7.31 2,525,315 133,194 7.03
-------- -------
Non-interest-earning assets 124,931 150,900
----------- ----------
Total assets $ 2,966,979 $2,676,215
=========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------
Interest-bearing liabilities
Savings accounts $ 640,679 $13,220 2.76% $ 622,453 $14,798 3.17%
Certificate accounts 1,148,443 49,377 5.74 950,846 37,378 5.24
NOW accounts 277,462 863 0.42 234,998 1,171 0.66
Money market accounts 69,462 1,715 3.30 56,533 1,289 3.04
Borrowed funds 685,069 32,299 6.29 629,823 25,880 5.48
----------- -------- ---------- -------
Total interest-bearing liabilities 2,821,115 97,474 4.61 2,494,653 80,516 4.30
-------- -------
Other liabilities 37,183 65,437
----------- ----------
Total liabilities 2,858,298 2,560,090
Stockholders' equity 108,681 116,125
----------- ----------
Total liabilities and
stockholders' equity $ 2,966,979 $2,676,215
=========== ==========
Net interest income $58,421 $52,678
======== =======
Net interest spread 2.70% 2.73%
======= =======
Net interest margin 2.74% 2.78%
======= =======
</TABLE>
(1) annualized
-9-
<PAGE>
HAVEN BANCORP, INC.
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data)
<TABLE>
<CAPTION>
2000
----
3Q 2Q 1Q
-- -- --
<S> <C> <C> <C>
INTEREST INCOME
---------------
Loans $34,798 $34,123 $ 34,407
Mortgage-backed securities 12,384 12,793 12,857
Money market investments 120 113 147
Debt and equity securities 5,004 4,822 4,326
------- ------- --------
Total Interest Income 52,306 51,851 51,737
------- ------- --------
INTEREST EXPENSE
----------------
Deposits
Savings accounts 4,203 4,501 4,516
NOW accounts 192 289 382
Money market accounts 543 642 529
Certificate accounts 17,725 16,081 15,571
Borrowed funds 10,633 10,519 11,147
------- ------- --------
Total Interest Expense 33,296 32,032 32,145
------- ------- --------
Net interest income before provision for loan losses 19,010 19,819 19,592
Provision for loan losses 596 585 565
------- ------- --------
Net interest income after provision for loan losses 18,414 19,234 19,027
------- ------- --------
NON-INTEREST INCOME
-------------------
Loan fees and servicing income 267 342 264
Mortgage banking income 86 171 1,084
Retail banking fees 5,911 5,811 4,866
Net gain on sales of interest-earning assets 146 - 126
Insurance, annuity and mutual fund fees 2,384 2,252 2,169
Other 190 141 94
------- ------- --------
Total Non-Interest Income 8,984 8,717 8,603
------- ------- --------
NON-INTEREST EXPENSE
--------------------
Compensation and benefits 8,375 8,541 11,037
Occupancy and equipment 3,106 3,156 3,609
REO operations, net (22) 79 (176) )
Federal deposit insurance premiums 105 120 108
Restructuring (recoveries) charges - (180) 7,057
Other 4,268 5,304 5,840
------- ------- --------
Total Non-Interest Expense 15,832 17,020 27,475
------- ------- --------
Income before income tax expense 11,566 10,931 155
Income tax expense 4,555 3,845 54
------- ------- --------
Net income $ 7,011 $ 7,086 $ 101
======= ======= ========
Net income per common share:
Basic $ 0.77 $ 0.80 $ 0.01
======= ======= ========
Diluted $ 0.73 $ 0.76 $ 0.01
======= ======= ========
</TABLE>
<TABLE>
<CAPTION>
1999
----
4Q 3Q 2Q 1Q
-- -- -- --
<S> <C> <C> <C> <C>
INTEREST INCOME
---------------
Loans $ 33,923 $ 31,339 $ 28,416 $ 25,735
Mortgage-backed securities 12,566 12,952 12,686 12,650
Money market investments 20 53 39 30
Debt and equity securities 4,160 4,134 3,095 2,065
-------- -------- -------- --------
Total Interest Income 50,669 48,478 44,236 40,480
-------- -------- -------- --------
INTEREST EXPENSE
----------------
Deposits
Savings accounts 4,867 5,114 5,015 4,669
NOW accounts 503 428 419 324
Money market accounts 544 430 440 419
Certificate accounts 14,891 13,554 12,071 11,753
Borrowed funds 11,585 10,400 8,371 7,109
-------- -------- -------- --------
Total Interest Expense 32,390 29,926 26,316 24,274
-------- -------- -------- --------
Net interest income before provision for loan losses 18,279 18,552 17,920 16,206
Provision for loan losses 1,035 1,035 880 675
-------- -------- -------- --------
Net interest income after provision for loan losses 17,244 17,517 17,040 15,531
-------- -------- -------- --------
NON-INTEREST INCOME
-------------------
Loan fees and servicing income 1,285 528 422 505
Mortgage banking income 692 97 677 2,268
Retail banking fees 4,634 4,472 3,865 3,079
Net gain on sales of interest-earning assets (930) 111 1,234 335
Insurance, annuity and mutual fund fees 1,885 2,231 2,168 1,975
Other 211 170 182 135
-------- -------- -------- --------
Total Non-Interest Income 7,777 7,609 8,548 8,297
-------- -------- -------- --------
NON-INTEREST EXPENSE
--------------------
Compensation and benefits 11,803 10,917 10,927 11,040
Occupancy and equipment 2,723 3,482 3,439 3,344
REO operations, net (148) 112 (33) (151
Federal deposit insurance premiums 302 255 254 254
Restructuring (recoveries) charges - - - -
Other 5,253 5,520 5,662 5,138
-------- -------- -------- --------
Total Non-Interest Expense 19,933 20,286 20,249 19,625
-------- -------- -------- --------
Income before income tax expense 5,088 4,840 5,339 4,203
Income tax expense 1,359 1,890 2,011 1,603
-------- -------- -------- --------
Net income $ 3,729 $ 2,950 $ 3,328 $ 2,600
======== ======== ======== ========
Net income per common share:
Basic $ 0.42 $ 0.34 $ 0.38 $ 0.30
======== ======== ======== ========
Diluted $ 0.40 $ 0.32 $ 0.37 $ 0.29
======== ======== ======== ========
</TABLE>
Note: Certain reclassifications have been made to prior period amounts to
conform to the current period presentation.
-10-
