<PAGE>
8-K
CURRENT REPORT
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): July 10, 1998
GreenPoint Financial Corp.
----------------------------------------------------------------
(Exact name of registrant as specified in its charter)
Delaware 0-22516 06-1379001
-------- ------- ----------
(State or other jurisdiction (Commission File Number) (IRS Employer
of incorporation) Identification Number)
90 Park Avenue, New York, New York 10016
------------------------------------------------------------
(Address of principal executive offices)
(212) 834-1711
-------------------
(Registrant's telephone number, including area code)
<PAGE>
ITEM 5. OTHER EVENTS
On July 10, 1998, GreenPoint Financial Corp. (the "Company")
issued the press release included as Exhibit 99.1 to this report and
incorporated by reference herein, announcing the Company's second quarter
earnings.
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS
(c) Exhibits.
The following exhibit is filed with this report: Exhibit 99.1 - Press Release
dated July 10, 1998.
<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 hereunto duly authorized.
GREENPOINT FINANCIAL CORP.
Date: July 10, 1998 By: /s/ Howard C. Bluver
-------------------------
Name: Howard C. Bluver
Title: Senior Vice President and
General Counsel
<PAGE>
Exhibit 99.1
N E W S R E L E A S E
90 Park Avenue
New York, NY 10016
[LOGO]
For Release:
6:55 a.m., Friday, July 10,1998
Contact:
Investors: Jeffrey Bergman, 212.834.1113
Media: Richard Humphrey, 212.834.1201
GreenPoint Financial Reports Record Earnings
New York, July 10--GreenPoint Financial Corp. (NYSE-GPT) today announced
record net income of $0.54 per diluted share, or $39.4 million, for the
second quarter ended June 30, 1998. The per share earnings represent an
increase of 20% over core net income for the second quarter of 1997 and an
increase of 4% over the core net income for the first quarter of 1998. Core
net income for the six months ended June 30 was $78.2 million, or $1.06 per
share.
Core cash earnings per share for the second quarter were $0.78, up 20% over the
second quarter of 1997, and 3% over the first quarter. Core cash earnings are
net of non-recurring items and non-cash charges which do not impact the
Company's tangible capital. Core cash return on average equity increased to
18.30% for the second quarter of 1998, compared to 15.13% for the second quarter
of 1997 and 17.36% for the first quarter of 1998.
"We have achieved yet another quarter of record core cash earnings per
share," said Thomas S. Johnson, Chairman and Chief Executive Officer. "Our
pricing discipline allows us to maintain our margins; our commitment to
strict underwriting standards allows us to maintain loan quality; and tight
expense control keeps costs in line with growth.
"During the second quarter, the level of mortgage originations improved over the
first quarter, but was slightly less than the same period a year ago. We
continue to believe that there is strong demand for our True No-Doc product,
and that volume will rise over time as our national origination network
matures."
<PAGE>
Mortgage Originations
Originations for the second quarter were $700 million, down 2% from the second
quarter of 1997, but up 21% from the first quarter. Net loan portfolio growth
for the quarter was $101 million. The percentage of new loans originated outside
of New York was 60%, and ARMs as a percentage of total loans were 24%.
Net Interest Income and Net Interest Margin
Net interest income was $118.9 million. Net interest margin for the quarter was
3.95%, up 2 basis points over the first quarter.
Asset Quality
Asset quality continued to improve during the second quarter. Non-performing
loans as a percent of total loans declined to 3.39% at June 30 from 4.35% at
June 30, 1997 and from 3.77% at March 31, 1998. Total non-performing loans
declined to $310 million at the end of the second quarter of 1998 from $360
million at the end of the year ago quarter, and from $341 million at the end of
the first quarter of 1998.
Non-Interest Expense
Expense control continues to be effective. The efficiency ratio was 41.9%.
Operating expense as a percent of average assets was 1.70% for the quarter.
Total non-interest expense for the quarter was 1.9% lower than the second
quarter of 1997 (excluding a restructuring charge), and 1.2% lower than the
first quarter (excluding an $8.3 million non-recurring charge).
Manufactured Housing Finance Acquisition
As announced on April 13, GreenPoint has signed a definitive agreement to
purchase BankAmerica Housing Services (BAHS), a division of Bank of America, FSB
for a cash premium of $603 million.
BankAmerica Housing Services is the second largest originator and servicer of
manufactured housing loans, with annual originations of more than $2.5 billion
and a servicing portfolio of $10.6 billion. BAHS has 1,500 employees, a national
sales and service network of 45 offices and more than 5,000 dealer relationships
in 48 states.
The acquisition is expected to close during the third quarter, and is expected
to be accretive to cash earnings in 1999.
<PAGE>
Equity Offering
On June 10, GreenPoint filed a registration statement with the Securities
and Exchange Commission relating to the offering of 15 million shares of
its common stock to finance a portion of its acquisition of the manufactured
housing lending business of BankAmerica Housing Services.
GreenPoint Financial Corp.
GreenPoint Financial Corp., a specialty home finance company traded on the NYSE
under the ticker symbol GPT, is the leading national lender in no-documentation
residential mortgages. Its principal subsidiaries are GreenPoint Mortgage, a
national mortgage banking company headquartered in Charlotte, NC, and GreenPoint
Bank, a New York State chartered savings bank with $10.8 billion in deposits in
73 branches serving more than 400,000 households in the Greater New York City
area.
This release may contain certain forward-looking statements, which are based on
management's current expectations. Factors that could cause future results to
vary materially from these 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.
###
<PAGE>
GREENPOINT FINANCIAL CORP. AND SUBSIDIARIES
TABLE 1--CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Unaudited)
<TABLE>
<CAPTION>
June 30, March 31, December 31,
1998 1998 1997
------------ ------------ ------------
(In thousands)
<S> <C> <C> <C>
ASSETS
Cash and due from banks ................................ $ 110,586 $ 127,268 $ 93,173
Money market investments ............................... 778,119 813,725 1,060,007
Loans held for sale .................................... 3,845 4,512 5,532
Securities available for sale .......................... 1,885,860 2,353,541 2,007,707
Securities held to maturity ............................ 3,774 3,902 4,009
Trading assets ......................................... 74 -- 24,951
Loans held for investment, net ......................... 9,018,616 8,916,897 8,795,627
Other interest-earning assets .......................... 118,698 117,445 116,951
Deferred income taxes, net ............................. 64,420 64,155 71,359
Other real estate owned, net ........................... 16,482 20,436 24,036
Goodwill ............................................... 554,018 565,579 577,141
Other assets ........................................... 299,410 240,779 303,025
------------ ------------ ------------
Total assets ................................ $ 12,853,902 $ 13,228,239 $ 13,083,518
------------ ------------ ------------
------------ ------------ ------------
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Deposits:
Savings and checking accounts due on demand ....... $ 4,309,045 $ 4,359,915 $ 4,453,826
Term certificates of deposit ...................... 6,506,364 6,507,741 6,519,152
------------ ------------ ------------
Total deposits .................................... 10,815,409 10,867,656 10,972,978
Mortgagors' escrow ..................................... 138,571 149,487 117,806
Securities sold under agreements to repurchase ......... -- 160,022 106,149
Trading liabilities .................................... -- -- 10,592
Senior bank notes ...................................... 199,850 199,840 199,831
Long term debt ......................................... 199,726 199,724 199,721
Other liabilities ...................................... 224,701 372,213 206,838
------------ ------------ ------------
Total liabilities ................................. 11,578,257 11,948,942 11,813,915
Stockholders' equity:
Common stock ...................................... 1,103 1,103 1,103
Additional paid-in capital (A) .................... 738,532 716,262 708,483
Retained earnings ................................. 1,187,616 1,162,241 1,142,407
Accumulated other comprehensive income, net ....... 55 (2,483) (3,555)
Treasury stock, at cost (B) ....................... (651,661) (597,826) (578,835)
------------ ------------ ------------
Total stockholders' equity .................... 1,275,645 1,279,297 1,269,603
------------ ------------ ------------
Total liabilities and stockholders' equity .... $ 12,853,902 $ 13,228,239 $ 13,083,518
------------ ------------ ------------
------------ ------------ ------------
</TABLE>
NOTES: (A) Net of ESOP and stock plans unallocated/unearned shares.
(B) Cost of shares repurchased, net of proceeds of share issuances
from employee stock option exercises.
<PAGE>
GREENPOINT FINANCIAL CORP. AND SUBSIDIARIES
TABLE 2--CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
<TABLE>
<CAPTION>
Quarter Ended Six Months Ended
------------------------------------ ------------------------
June 30, March 31, June 30, June 30, June 30,
1998 1998 1997 1998 1997
--------- --------- --------- --------- ---------
(In thousands, except per share amounts)
<S> <C> <C> <C> <C> <C>
Interest income ..................................... $ 244,717 $ 245,085 $ 241,347 $ 489,802 $ 479,692
Interest expense .................................... 125,810 125,735 121,013 251,545 238,922
--------- --------- --------- --------- ---------
Net interest income ............................ 118,907 119,350 120,334 238,257 240,770
Provision for possible loan losses .................. (3,170) (4,012) (4,444) (7,182) (9,461)
--------- --------- --------- --------- ---------
Net interest income after provision
for possible loan losses ............................ 115,737 115,338 115,890 231,075 231,309
Non-interest income:
Fees and commissions ........................... 12,432 11,368 11,273 23,800 21,889
Other income ................................... 137 85 126 222 230
Net gain on securities ......................... 287 1,135 211 1,422 472
Net gain (loss) on sales of loans .............. 38 194 (160) 232 (197)
Gain on sale of assets ......................... -- -- -- -- 2,416
Gain on sale of branches ....................... -- -- -- -- 5,850
--------- --------- --------- --------- ---------
Total non-interest income .................. 12,894 12,782 11,450 25,676 30,660
--------- --------- --------- --------- ---------
Non-interest expense:
Salaries and benefits ............................... 22,646 23,104 22,621 45,750 45,314
Employee Stock Ownership and stock plans expense .... 6,098 5,563 4,711 11,661 9,521
Net expense of premises and equipment ............... 11,793 11,949 12,297 23,742 24,397
Advertising ......................................... 1,686 1,682 2,238 3,368 4,478
Federal deposit insurance premiums .................. 669 681 726 1,350 1,500
Charitable foundation expense ....................... 1,875 1,875 2,373 3,750 4,358
Other administrative expenses ....................... 10,509 10,766 10,416 21,275 22,867
Other real estate owned income ...................... (2,035) (1,569) (955) (3,604) (1,417)
Goodwill amortization ............................... 11,561 11,562 11,620 23,123 23,263
Restructuring charge ................................ -- -- 2,500 -- 2,500
Non-recurring personnel expense ..................... -- 8,335 -- 8,335 --
--------- --------- --------- --------- ---------
Total non-interest expense ..................... 64,802 73,948 68,547 138,750 136,781
--------- --------- --------- --------- ---------
Income before income taxes .......................... 63,829 54,172 58,793 118,001 125,188
Income taxes ........................................ 24,414 20,586 23,664 45,000 50,388
--------- --------- --------- --------- ---------
Net income .......................................... $ 39,415 $ 33,586 $ 35,129 $ 73,001 $ 74,800
--------- --------- --------- --------- ---------
--------- --------- --------- --------- ---------
Basic earnings per share ............................ $ 0.56 $ 0.47 $ 0.45 $ 1.03 $ 0.95
--------- --------- --------- --------- ---------
--------- --------- --------- --------- ---------
Diluted earnings per share .......................... $ 0.54 $ 0.45 $ 0.43 $ 0.99 $ 0.90
--------- --------- --------- --------- ---------
--------- --------- --------- --------- ---------
Net income (excluding non-
recurring items) (1) ................................ $ 39,415 $ 38,754 $ 36,622 $ 78,169 $ 71,354
--------- --------- --------- --------- ---------
--------- --------- --------- --------- ---------
Diluted net income per
share (excluding non-
recurring items) (1) ............................... $ 0.54 $ 0.52 $ 0.45 $ 1.06 $ 0.86
--------- --------- --------- --------- ---------
--------- --------- --------- --------- ---------
</TABLE>
(1) Non-recurring items include branch sales, asset sales, restructuring charge,
and non-recurring personnel expense.
<PAGE>
TABLE 3--CORE CASH EARNINGS
GreenPoint's operating results include significant amortization of goodwill
and employee stock compensation plans expense. These non-cash items, unlike
all other expenses reported by the Company, do not decrease tangible capital
and result in increased related cash earnings. Additional cash earnings are
available to support growth of earning assets, increases in cash dividends,
and additional repurchases of the Company's stock.
<TABLE>
<CAPTION>
Quarter Ended Six Months Ended
------------------------------- --------------------
June 30, March 31, June 30, June 30, June 30,
1998 1998 1997 1998 1997
-------- -------- -------- -------- --------
(Dollars in thousands, except per share amounts)
<S> <C> <C> <C> <C> <C>
Net income (excluding non-recurring items) (1).... $ 39,415 $ 38,754 $ 36,622 $ 78,169 $ 71,354
Add back:
Goodwill amortization ............................. 11,561 11,562 11,620 23,123 23,263
Employee stock plans expense ...................... 6,098 5,563 4,711 11,661 9,521
-------- -------- -------- -------- --------
Core cash earnings ................................ $ 57,074 $ 55,879 $ 52,953 $112,953 $104,138
-------- -------- -------- -------- --------
-------- -------- -------- -------- --------
Core cash earnings per share (2) .................. $ 0.78 $ 0.76 $ 0.65 $ 1.54 $ 1.25
-------- -------- -------- -------- --------
-------- -------- -------- -------- --------
</TABLE>
(1) Non-recurring items include branch sales, asset sales, restructuring charge
and non-recurring personnel expense.
(2) Based on the weighted average shares used to calculate diluted earnings per
share.
<PAGE>
TABLE 4--SELECTED FINANCIAL RATIOS AND OTHER DATA:
<TABLE>
<CAPTION>
Quarter Ended Six Months Ended
----------------------------- ------------------
June 30, March 31, June 30, June 30, June 30,
1998 1998 1997 1998 1997
-------- --------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Performance ratios (Annualized):
Core cash earnings return on average assets (2) ... 1.76% 1.71% 1.61% 1.73% 1.58%
Core cash earnings return on average equity (2) ... 18.30% 17.36% 15.13% 17.83% 14.56%
Net interest margin ............................... 3.95% 3.93% 3.99% 3.94% 3.98%
Net interest spread ............................... 3.65% 3.65% 3.67% 3.65% 3.65%
Operating expense to average assets (1) ........... 1.70% 1.70% 1.69% 1.70% 1.71%
Net interest income to operating expense (1) ...... 2.15x 2.15x 2.17x 2.15x 2.14x
Efficiency ratio (1) .............................. 41.9% 42.1% 42.0% 42.0% 42.7%(3)
Average interest-earning assets
to average interest-bearing liabilities ........... 1.07x 1.07x 1.08x 1.07x 1.08x
</TABLE>
(1) Excludes goodwill expense, ORE income, restructuring charge and
non-recurring personnel expense.
(2) Excludes branch sales, asset sales, restructuring charge and non-recurring
personnel expense.
(3) Excludes branch and asset sales.
<PAGE>
TABLE 4 -- SELECTED FINANCIAL RATIOS AND OTHER DATA: (CONTINUED)
<TABLE>
<CAPTION>
Comparative Loan Volumes Quarter Ended Six Months Ended
------------------------------ -------------------
(Dollars in millions) June 30, March 31, June 30, June 30, June 30,
1998 1998 1997 1998 1997
-------- --------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Applications received .............. $1,117 $1,085 $1,157 $2,202 $2,224
Commitments made ................... 870 732 909 1,602 1,809
Loans originated ................... 700 579 713 1,279 1,358
Unexpired open loan commitments .... 447 456 440 N/A N/A
</TABLE>
Note: There is normal time lag between receipt of a loan application,
issuance of a loan commitment, and acceptance and closing on a loan
by the borrower.
<TABLE>
<CAPTION>
Quarter Ended Six Months Ended
------------------------------------------ --------------------
June 30, March 31, June 30, June 30, June 30,
1998 1998 1997 1998 1997
------------ ----------- ----------- -------- --------
<S> <C> <C> <C> <C> <C>
Per Share Data:
Core cash earnings per share* .............. $ 0.78 $ 0.76 $ 0.65 $ 1.54 $ 1.25
Common book value** ........................ $ 17.65 $ 17.43 $ 17.14 N/A N/A
Tangible common book value** ............... $ 9.99 $ 9.72 $ 9.63 N/A N/A
*Average shares used in calculation ........ 73,089,000 73,954,000 81,861,000
**Period-end shares used in calculation .... 72,254,000 73,399,000 80,013,000
Total shares outstanding ................... 83,383,000 84,469,000 90,089,000
Regulatory Capital Ratios
Company (1)
Leverage capital ...................... 7.40% 7.32% 7.95%
Risk-based capital:
Tier 1 ............................ 14.71% 14.78% 16.37%
Total ............................. 15.96% 16.03% 17.62%
Bank:
Leverage capital ...................... 7.32% 7.23% 6.66%
Risk-based capital:
Tier 1 ............................ 14.54% 14.59% 13.92%
Total ............................. 15.79% 15.84% 15.17%
</TABLE>
(1) Includes Trust Preferred of $199.7 million classified as long term debt.
<TABLE>
<S> <C> <C> <C>
Asset Quality Data:
Non-performing loans, net .................. $ 310,164 $ 341,249 $ 360,369
Other real estate owned, net .............. 16,482 20,436 23,968
-------------- ---------- ----------
Total non-performing assets, net ........... $ 326,646 $ 361,685 $ 384,337
-------------- ---------- ----------
-------------- ---------- ----------
Non-performing loans to total loans ........ 3.39% 3.77% 4.35%
Non-performing assets to total assets ...... 2.54% 2.73% 2.89%
Allowance for possible loan losses to:
Non-performing loans .................. 35.79% 32.23% 29.69%
Total loans ........................... 1.21% 1.21% 1.29%
</TABLE>
