SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities and Exchange Act of 1934
Date of Report (Date of earliest event reported)
October 22, 1996
Long Island Bancorp, Inc.
(Exact Name of Registrant as Specified in its Charter)
Delaware 0-23526 11-3198508
(State or Other Jurisdiction (Commission File (I.R.S. Employer
of Incorporation) Number) Identification No.)
201 Old Country Road
Melville, New York 11747-2724
(Address of Principal (Zip Code)
Executive Offices)
Registrant's telephone number, including area code (516) 547-2000
Not Applicable
(Former Name of Former Address, if Changed Since Last Report)
<PAGE>
Item 1. Changes in Control Registrant
Not Applicable
Item 2. Acquisition or Disposition of Assets
Not Applicable
Item 3. Bankruptcy or Receivership
Not Applicable
Item 4. Changes in Registrant's Certifying Accountant
Not Applicable
Item 5. Other Events
Press Release of Long Island Bancorp, Inc.
dated October 22, 1996
Item 6. Resignations of Registrant's Directors
Not Applicable
Item 7. Financial Statements and Exhibits
(a) Not Applicable
<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 hereunto duly authorized.
LONG ISLAND BANCORP, INC.
By: /S/ Mark Fuster
---------------------------
Name: Mark Fuster
Title: Chief Financial Officer
(principal financial and
accounting officer)
Date: October 23, 1996
<PAGE>
LONG ISLAND BANCORP, INC. NEWS RELEASE
201 Old Country Road
Melville, New York 11747
Contact:
Mary M. Feder
Vice President, Investor Relations
516-547-2607
LONG ISLAND BANCORP, INC. REPORTS FOURTH QUARTER AND YEAR END EARNINGS
Melville, New York, October 22, 1996 - Long Island Bancorp, Inc.
(NASDAQ: LISB), the holding company for The Long Island Savings Bank, FSB today
reported net income of $32.3 million and primary and fully diluted earnings per
share of $1.33 for the year ended September 30, 1996. Excluding the effect of a
one-time SAIF insurance assessment of $18.7 million and the one-time costs
related to our President's retirement of $0.05 per share, net income would have
been $44.3 million and primary and fully diluted earnings per share would have
been $1.83. For the year ended September 30, 1995 net income amounted to $43.5
million and primary and fully diluted earnings per share were $1.73 and $1.71,
respectively.
Excluding the effect of the special charges described above, net income
for the fourth quarter of 1996 would have been $10.1 million and primary and
fully diluted earnings per share would have been $0.43. However, the Company
reported a net loss of $1.9 million and primary and fully diluted loss per share
of $0.08. For the 1995 fourth quarter, net income amounted to $11.9 million and
primary and fully diluted earnings per share amounted to $0.47.
Commenting on the financial performance this quarter, John J. Conefry,
Jr., Chairman of the Board and Chief Executive Officer stated, "We are very
pleased that Congress has passed legislation that significantly reduces the FDIC
premium disparity that existed between SAIF-insured institutions and BIF-insured
institutions. For community banks, such as The Long Island Savings Bank, the
premium disparity was particularly onerous. We look upon the one-time pre-tax
special assessment of $0.45 per share as a positive investment for the future
since the Bank's annual assessment rate is expected to be reduced from the
current rate of 23 basis points to approximately 6.4 basis points, resulting in
a significant annual savings."
<PAGE>
EARNINGS SUMMARY FOR THE YEAR ENDED SEPTEMBER 30, 1996
- ------------------------------------------------------
The Company's net interest income increased by $1.1 million to $154.4
million for the year ended September 30, 1996. The increase is primarily
attributable to the redeployment of funds from mortgage-backed securities and
debt and equity securities into real estate loans at a positive interest rate
spread. The utilization of additional borrowed funds, however, contributed to a
20 basis point decline in the net interest margin to 3.24% in 1996 from 3.44% in
1995.
The provision for possible loan losses was reduced by $0.3 million to
$6.2 million for the year ended September 30, 1996. This reduction reflects the
stable level of non-performing loans, which at September 30, 1996 was $52.7
million, and the improvement in the ratio of non-performing loans to total loans
to 1.69% in 1996, down from 2.67% in 1995. Net charge-offs for 1996 amounted to
$6.6 million, the lowest level in the past seven years and the ratio of net
charge-offs to average loans outstanding declined for the third consecutive year
to 0.27%.
Total non-interest income increased by $11.7 million, or 40.2%, to
$40.8 million in the year ended September 30, 1996. A portion of the growth in
non-interest income was due to an increase of $6.7 million in net gains on sale
activity. The increase in net gains on sale activity reflects the execution of
management's strategy of periodically realizing profits in the Company's loan,
investment and funding portfolios. As interest rates changed during the year,
the Company realized profits in the available-for-sale portfolios which resulted
in increased liquidity and improved the Company's ability to take advantage of
higher yielding investments as they become available. Total non-interest income
also benefited by an increase of $2.7 million in the net gain on investments in
real estate and premises. During 1996, the Company disposed of ten real estate
investment properties, most of which were the result of various business
acquisitions and were not necessary to support its core businesses. In addition
to the above, loan servicing fees increased by $1.0 million reflecting the
continued expansion of mortgage servicing activities and income from insurance
and securities commissions increased by $0.8 million reflecting expanded
delivery channels.
Total non-interest expense increased by $30.5 million, or 29.7%, to
$133.0 million in the year ended September 30, 1996. The increase was
principally the result of the SAIF insurance special assessment discussed
previously and an increase of $6.5 million in compensation costs. The
incremental compensation costs were the result of the rise in the price of the
Company's common stock and its impact on the Company's stock based benefit
plans, as well as retirement costs and normal annual salary increases. Beginning
on January 1, 1997, the Company anticipates a reduction in its stock based
<PAGE>
benefit costs as a result of plan modifications recently adopted. Occupancy and
equipment costs increased by $2.1 million and other G&A expenses increased by
$1.5 million in 1996 primarily reflecting the Company's continued technological
investments to improve its information and communication systems coupled with
its recent acquisitions of First Home Mortgage of Virginia, Inc. and two of the
mortgage origination offices of Fleet Mortgage Company. Advertising costs
increased by $1.2 million as a result of the Company's television ad campaign.
Income tax expense decreased by $6.1 million, or 20.5%, to $23.8
million in the year ended September 30, 1996. This decrease is attributable to
the decrease in pretax income partially offset by an increase in the effective
tax rate to 42.4% in 1996 from 40.7% in 1995. The increase in the effective tax
rate principally reflects limitations placed on the tax deductibility of ESOP
contributions that arise from increases in the price of the Company's common
stock.
FOURTH QUARTER EARNINGS SUMMARY
- -------------------------------
The Company's net interest income increased by $0.6 million to $38.7
million in the quarter ended September 30, 1996. The increase in net interest
income is attributable to the growth of the average real estate loan portfolio
to $2.9 billion at September 30, 1996 from $1.8 billion at September 30, 1995.
This growth was funded by a $650.1 million reduction in the average MBS
portfolio and a $288.7 million increase in average borrowed funds. The net
interest margin declined to 3.09% in the 1996 quarter from 3.27% in the 1995
quarter partially as a result of the increase in borrowed funds.
Total non-interest income increased by $2.3 million, or 26.9%, to $10.8
million in the quarter ended September 30,1996. The increase is principally due
to an improvement in net gains on sale activity of $2.0 million and additional
loan servicing fees of $0.7 million. The $2.0 million increase in the net gains
on sale activity reflects management's strategy as previously described of
realizing portfolio profits and capitalizing on reinvestment opportunities that
arise as interest rates fluctuate. The increase of $0.7 million in loan
servicing fees reflects the growth of the mortgage servicing portfolio. The
decline in other income is due to the positive impact in the 1995 quarter of the
resolution of an outstanding claim of approximately $0.9 million that had arisen
from a prior acquisition.
Total non-interest expense increased by $24.6 million, or 93.2%, to
$51.0 million in the quarter ended September 30, 1996. The increase in
non-interest expense is principally a result of the one-time $18.7 million SAIF
assessment discussed earlier. Further contributing to the increase are
additional compensation and benefit costs, office occupancy and equipment costs,
and other G&A expenses. Compensation and benefit costs increased by $5.3 million
due to greater costs related to stock based benefit plans reflecting the
<PAGE>
appreciation of the Company's common stock, retirement costs and the integration
of our recent mortgage banking acquisitions. Office occupancy and equipment
costs and other G&A expenses increased by $0.4 million and $0.8 million,
respectively, also stemming from the acquisitions. The effect of these increases
was mitigated by a decrease in advertising costs of $0.6 million which were
higher in the 1995 quarter due to the Company's decision to promote its consumer
banking and mortgage lending businesses.
Income tax expense decreased by $7.9 million to a $1.0 million benefit
for the quarter ended September 30, 1996. This decrease is attributable to the
decrease in pretax income partially offset by a decline in the effective tax
rate to 35.0% in 1996 from 36.5% in 1995. The effective tax rates principally
reflect reductions in the Company's deferred tax valuation allowance pursuant to
SFAS No. 109, "Accounting for Income Taxes."
BALANCE SHEET SUMMARY
- ---------------------
Total assets at September 30, 1996 were $5.4 billion, an increase of
$462.2 million from the amount reported at September 30, 1995. The growth in
assets is attributable to an increase of $1.0 billion in total loans receivable
held for investment partially offset by a $536.5 million decrease in
mortgage-backed securities. Loan volume for the fiscal year ended September 30,
1996 was $2.5 billion of which $353.8 million represents bulk purchases of
loans.
The increase in total liabilities primarily reflects an increase in
borrowed funds of $344.3 million and an increase in deposits of $59.5 million.
Stockholders' equity decreased by $7.1 million during the fiscal year
ended September 30, 1996. The decrease reflects the declaration of $9.2 million
in dividends, the net purchase of treasury stock in the amount of $38.0 million
and a $0.3 million decline in unrealized gains on securities classified as
available-for-sale which was partially offset by earnings of $32.3 million and
$8.1 million related to the Company's stock benefit plans. At September 30,
1996, book value per share amounted to $21.06.
Long Island Bancorp, Inc. is the holding company for The Long Island
Savings Bank, FSB. The Long Island Savings Bank, FSB is a federally chartered
FDIC-insured institution which serves its customers through 36 full service
branch offices throughout Queens, Nassau and Suffolk counties. The Bank also
operates mortgage loan offices across Long Island and in Connecticut, Delaware,
Georgia, Maryland, New Jersey, North Carolina, Pennsylvania and Virginia, and
maintains an Internet home page at the address: http: //www.lisb.com.
<PAGE>
This document contains forward looking statements based on current
management expectations. The Company's actual results could differ materially
from those management expectations. Factors that could cause future results to
vary from current management expectations include, but are not limited to,
general economic conditions, changes in interest rates, deposit flows, the cost
of funds, cost of federal deposit insurance premiums, demand for loan products,
demand for financial services, competition, changes in the quality or
composition of the Bank's loan and investment portfolios, changes in accounting
principles, policies or guidelines, and other economic, competitive,
governmental, regulatory and technological factors affecting the Company's
operations, products, services and prices. Additional factors are described in
the Company's public reports filed with the SEC.
(Financial tables attached)
<PAGE>
<TABLE>
<CAPTION>
LONG ISLAND BANCORP, INC.
AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(In thousands, except share data)
SEPTEMBER 30, SEPTEMBER 30,
1996 1995
--------------- ---------------
A S S E T S
<S> <C> <C>
Cash and cash equivalents (including interest-earning assets of
$37,357 and
$10,850, respectively) $ 76,348 $ 67,410
Investment in debt and equity securities, net:
Held-to-maturity, net (estimated fair value of
$0 and $55,871, respectively) 55,839
---
Available-for-sale 180,650 233,408
Mortgage-backed securities, net:
Held-to-maturity (estimated fair value of
$21,120 and $1,339,014, respectively) 23,096 1,337,903
Available-for-sale 1,717,106 938,847
Stock in Federal Home Loan Bank of New York, at cost 40,754 35,132
Loans held for sale, net 57,969 49,372
Loans receivable held for investment, net:
Real estate loans, net 2,921,285 1,900,204
Commercial loans, net 7,810 8,706
Other loans, net 145,654 120,189
--------------- ---------------
Loans, net 3,074,749 2,029,099
Less allowance for possible loan losses (33,912) (34,358)
--------------- ---------------
Total loans receivable held for investment, net 3,040,837 1,994,741
Mortgage servicing rights, net 29,687 11,328
Office properties and equipment, net 89,279 86,239
Accrued interest receivable, net 32,962 31,752
Real estate owned, net 8,155 8,893
Investment in real estate, net 2,525 12,286
Prepaid expenses and other assets 64,423 38,472
--------------- ---------------
Total assets $ 5,363,791 $ 4,901,622
=============== ===============
L I A B I L I T I E S A N D S T O C K H O L D E R S ' E Q U I T Y
Liabilities:
Deposits, net $ 3,633,010 $ 3,573,529
Official checks outstanding 49,860 42,812
Borrowed funds 978,023 633,675
Mortgagors' escrow liabilities 64,232 71,400
Accrued expenses and other liabilities 119,572 54,032
--------------- ---------------
Total liabilities 4,844,697 4,375,448
Stockholders' equity:
Preferred stock ($0.01 par value, 5,000,000 shares authorized;
none issued)
--- ---
Common stock ($0.01 par value, 45,000,000 shares authorized; 26,816,464
shares issued, 24,644,157 and 26,076,486 outstanding,
respectively) 268 268
Additional paid-in capital 304,027 298,518
Unallocated Employee Stock Ownership Plan (19,230) (21,443)
Unearned Management Recognition & Retention Plan (5,551) (7,071)
Unrealized gain on securities available-for-sale, net of tax 6,633 6,947
Retained income-partially restricted 285,311 264,105
Treasury stock, at cost (2,172,307 and 739,978 shares, (52,364) (15,150)
respectively)
--------------- ---------------
Total stockholders' equity 519,094 526,174
--------------- ---------------
Total liabilities and stockholders' equity $ 5,363,791 $ 4,901,622
=============== ===============
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
LONG ISLAND BANCORP, INC.
AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
FOR THE THREE MONTHS ENDED FOR THE YEAR ENDED
SEPTEMBER 30, SEPTEMBER 30,
-----------------------------------------------------------
1996 1995 1996 1995
------------- ----------------------------- -------------
Interest income:
<S> <C> <C> <C> <C>
Real estate loans $ 54,541 $ 37,943 $ 185,241 $ 140,268
Commercial loans 152 116 705 984
Other loans 3,851 3,567 14,845 14,840
Mortgage-backed securities 28,842 39,598 134,064 140,173
Debt and equity securities 4,034 5,538 16,716 24,950
------------- ------------- ------------- -------------
Total interest income 91,420 86,762 351,571 321,215
------------- ------------- ------------- -------------
Interest expense:
Deposits 39,044 38,668 155,830 139,641
Borrowed funds 13,650 9,946 41,346 28,255
------------- ------------- ------------- -------------
Total interest expense 52,694 48,614 197,176 167,896
------------- ------------- ------------- -------------
Net interest income 38,726 38,148 154,395 153,319
Provision for possible loan losses 1,500 1,500 6,200 6,470
------------- ------------- ------------- -------------
Net interest income after provision for possible 37,226 36,648 148,195 146,849
loan losses
Non-interest income:
Fees and other income:
Loan fees and service charges 944 748 3,217 2,494
Loan servicing fees 4,648 3,989 13,863 12,873
Income from insurance and securities commissions 368 215 1,608 805
Deposit service fees 1,518 1,446 5,937 5,917
------------- ------------- ------------- -------------
Total fee income 7,478 6,398 24,625 22,089
Other income 1,050 1,623 3,718 3,903
------------- ------------- ------------- -------------
Total fees and other income 8,528 8,021 28,343 25,992
Net gains on sale activity:
Net gains on loans and mortgage-backed securities 2,676 616 7,993 3,562
Net (losses) gains on investment in debt and equity (88) 1 340 (1,924)
securities
------------- ------------- ------------- -------------
Total net gains on sale activity 2,588 617 8,333 1,638
Net (loss) gain on investment in real estate and premises (276) (95) 4,118 1,467
------------- ------------- ------------- -------------
Total non-interest income 10,840 8,543 40,794 29,097
Non-interest expense:
General and administrative expense:
Compensation, payroll taxes and fringe benefits 16,812 11,544 57,969 51,443
Advertising 1,673 2,313 5,940 4,691
Office occupancy and equipment 5,679 5,250 20,631 18,547
Federal insurance premiums 2,287 2,206 9,055 8,961
Other general and administrative expense 5,327 4,562 18,612 17,101
------------- ------------- ------------- -------------
Total general and administrative expense 31,778 25,875 112,207 100,743
SAIF special assessment 18,657 --- 18,657 ---
Net loss on real estate owned 559 522 2,090 1,790
------------- ------------- ------------- -------------
Total non-interest expense 50,994 26,397 132,954 102,533
------------- ------------- ------------- -------------
(Loss) income before income taxes (2,928) 18,794 56,035 73,413
Provision for income tax (benefit) expense (1,026) 6,868 23,760 29,897
------------- ------------- ------------- -------------
Net (loss) income $ (1,902) $ 11,926 $ 32,275 $ 43,516
============= ============= ============= =============
Primary (loss) earnings per common share $ (0.08) $ 0.47 $ 1.33 $ 1.73
============= ============= ============= =============
Fully diluted (loss) earnings per common share $ (0.08) $ 0.47 $ 1.33 $ 1.71
============= ============= ============= =============
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
LONG ISLAND BANCORP, INC.
AND SUBSIDIARY
AVERAGE BALANCE SHEET
FOR THE THREE MONTHS ENDED SEPTEMBER 30,
--------------------------------------------------------------------------------------
1996 1995
------------------------------------------ -----------------------------------------
AVERAGE AVERAGE
AVERAGE YIELD\ AVERAGE YIELD\
BALANCE INTEREST COST BALANCE INTEREST COST
-------------- ------------- ----------- -------------- ------------ -----------
(DOLLARS IN THOUSANDS)
INTEREST-EARNING ASSETS
<S> <C> <C> <C> <C> <C> <C>
Interest-earning cash
equivalents $ 29,641 $ 378 5.07 % $ 31,195 $ 443 5.68 %
Debt and equity securities
and FHLB-NY stock, net (1) 263,101 3,657 5.56 345,964 5,095 5.89
Mortgage-backed securities, 1,681,810 28,843 6.86 2,331,909 39,598 6.79
net (1)
Real estate loans, net (2) 2,899,104 54,540 7.53 1,838,997 37,943 8.25
Commercial and other loans, 136,012 4,002 11.77 111,647 3,683 13.19
net (2)
-------------- ------------- -------- -------------- ------------ --------
Total interest-earning assets 5,009,668 91,420 7.30 4,659,712 86,762 7.45
Other non-interest-earning 282,313 229,151
assets
-------------- ------------- -------------- ------------
Total assets $ 5,291,981 $ 91,420 $ 4,888,863 $ 86,762
============== ============= ============== ============
INTEREST BEARING LIABILITIES
Deposits, net $ 3,682,553 $ 39,044 4.22 % $ 3,598,920 $ 38,668 4.26 %
Borrowed funds 963,080 13,649 5.64 674,350 9,946 5.85
-------------- ------------- -------- -------------- ------------ --------
Total interest-bearing 4,645,633 52,693 4.51 4,273,270 48,614 4.51
liabilities
Non-interest-bearing 125,372 103,097
liabilities
-------------- --------------
Total liabilities 4,771,005 4,376,367
Total stockholders' equity 520,976 519,129
-------------- ------------- -------- -------------- ------------ --------
Total liabilities and
stockholders'
$ 5,291,981 $ 52,693 $ 4,895,496 $ 48,614
equity
============== ------------- ============== ------------
Net interest income/spread (3) $ 38,727 2.79 % $ 38,148 2.93 %
============= ======== ============ ========
Net interest margin as %
of interest-earning assets 3.09 % 3.27 %
(4)
======== ========
Ratio of interest-earning
assets to
interest-bearing 107.84 % 109.04 %
liabilities
======== ========
</TABLE>
(1) Debt and equity and mortgage-backed securities are shown including the
average market value appreciation of $3.4 million and $7.0 million for the
three months ended September 30, 1996 and 1995, respectively.
(2) Net of unearned discounts, premiums, deferred loan fees, purchase accounting
discounts and premiums and allowance for possible loan losses, and
including non-performing loans and loans held for sale.
(3) Interest rate spread represents the difference between the average rate on
interest-earning assets and the average cost of interest-bearing
liabilities.
(4) Net interest margin represents net interest income divided by average
interest-earning assets.
<PAGE>
<TABLE>
<CAPTION>
LONG ISLAND BANCORP, INC.
AND SUBSIDIARY
AVERAGE BALANCE SHEET
FOR THE YEAR ENDED SEPTEMBER 30,
--------------------------------------------------------------------------------------
1996 1995
------------------------------------------ -----------------------------------------
AVERAGE AVERAGE
AVERAGE YIELD/ AVERAGE YIELD/
BALANCE INTEREST COST BALANCE INTEREST COST
-------------- ------------- ----------- -------------- ------------ -----------
(DOLLARS IN THOUSANDS)
INTEREST-EARNING ASSETS
<S> <C> <C> <C> <C> <C> <C>
Interest-earning cash
equivalents $ 32,109 $ 1,708 5.32 % $ 47,153 $ 2,560 5.43 %
Debt and equity securities
and FHLB-NY stock, net (1) 268,344 15,008 5.59 391,556 22,390 5.72
Mortgage-backed securities, 1,952,217 134,064 6.87 2,176,416 140,173 6.44
net (1)
Real estate loans, net (2) 2,380,633 185,241 7.78 1,724,834 140,268 8.13
Commercial and other loans, 125,629 15,550 12.38 117,993 15,824 13.41
net (2)
-------------- ------------- -------- -------------- ------------ --------
Total interest-earning assets 4,758,932 351,571 7.39 4,457,952 321,215 7.21
Other non-interest-earning 268,355 228,981
assets
-------------- ------------- -------------- ------------
Total assets $ 5,027,287 $ 351,571 $ 4,686,933 $ 321,215
============== ============= ============== ============
INTEREST-BEARING LIABILITIES
Deposits, net $ 3,657,503 $ 155,830 4.26 % $ 3,569,571 139,641 3.91 %
Borrowed funds 724,448 41,346 5.71 510,987 28,255 5.53
-------------- ------------- -------- -------------- ------------ --------
Total interest-bearing 4,381,951 197,176 4.50 4,080,558 167,896 4.11
liabilities
Non-interest-bearing 120,982 95,689
liabilities
-------------- --------------
Total liabilities 4,502,933 4,176,247
Total stockholders' equity 524,354 510,686
-------------- ------------- -------- -------------- ------------ --------
Total liabilities and
stockholders'
equity $ 5,027,287 $ 197,176 $ 4,686,933 $ 167,896
============== ------------- ============== ------------
Net interest income/spread (3) $ 154,395 2.89 % $ 153,319 3.10 %
============= ======== ============ ========
Net interest margin as %
of interest-earning assets 3.24 % 3.44 %
(4)
======== ========
Ratio of interest-earning
assets to
interest-bearing 108.60 % 109.25 %
liabilities
======== ========
</TABLE>
(1) Debt and equity and mortgage-backed securities are shown including the
average market value appreciation of $12.7 million and depreciation of $7.0
million for the year ended September 30, 1996 and 1995, respectively.
(2) Net of unearned discounts, premiums, deferred loan fees, purchase accounting
discounts and premiums and allowance for possible loan losses, and including
non-performing loans and loans held for sale.
(3) Interest rate spread represents the difference between the average rate on
interest-earning assets and the average cost of interest-bearing
liabilities.
(4) Net interest margin represents net interest income divided by average
interest-earning assets.
<PAGE>
<TABLE>
<CAPTION>
LONG ISLAND BANCORP, INC.
AND SUBSIDIARY
FINANCIAL HIGHLIGHTS
AT OR FOR THE AT OR FOR THE
THREE MONTHS YEAR
ENDED SEPTEMBER 30, ENDED SEPTEMBER 30,
---------------------------------- ----------------------------------
1996 1995 1996 1995
-------------- --------------- --------------- ---------------
SELECTED FINANCIAL RATIOS: (a)
<S> <C> <C> <C> <C>
Return on average assets (b) (0.14)% 0.97% 0.64% 0.93%
Return on average stockholders' equity (c) (1.46) 9.10 6.16 8.52
Average stockholders' equity to average assets 9.84 10.68 10.43 10.90
(d)
Stockholders' equity to total assets (e) 9.68 10.73 9.68 10.73
Interest rate spread during period 2.79 2.93 2.89 3.10
Net interest margin 3.09 3.27 3.24 3.44
Operating expenses to average assets 2.40 2.11 2.23 2.15
Efficiency ratio 67.25 56.04 61.40 56.18
Net interest income to operating expenses 1.22x 1.47x 1.38x 1.52x
Average interest-earning assets to average
interest-bearing 107.84 109.04 108.60 109.25
liabilities
SELECTED DATA:
Primary (loss) earnings per share $ (0.08) $0.47 $ 1.33 $1.73
Weighted average number of shares outstanding
for primary 23,810,822 25,120,002 24,220,480 25,088,089
earnings per share computation
Fully diluted (loss) earnings per share $(0.08) $0.47 $1.33 $1.71
Weighted average number of shares outstanding
for fully 23,821,719 25,218,236 24,227,013 25,446,588
diluted earnings per share computation
Book value per share $21.06 $20.18 $21.06 $20.18
Number of shares outstanding for book value per
share 24,644,157 26,076,486 24,644,157 26,076,486
computation
Cash dividends declared per share $0.10 $0.10 $0.40 $0.40
Dividend payout ratio (f) (f) 21.28% 30.08% 23.39%
AT SEPTEMBER 30,
----------------------------
1996 1995
------------ -----------
ASSET QUALITY RATIOS:
<S> <C> <C>
Non-performing loans to total gross loans 1.69% 2.67%
Non-performing assets to total assets 1.14 1.32
Allowance for possible loan losses to non-performing loans 64.29 61.71
REGULATORY CAPITAL AT SEPTEMBER 30, 1996 FOR THE LONG ISLAND SAVINGS BANK, FSB:
REGULATORY REGULATORY EXCESS
CAPITAL CAPITAL CAPITAL
REQUIREMENT LEVEL LEVEL
AMOUNT PERCENT AMOUNT PERCENT AMOUNT PERCENT
(DOLLARS IN THOUSANDS)
<S> <C> <C> <C> <C> <C> <C>
Tangible capital $ 79,679 1.50% $416,802 7.85% $337,123 6.35%
Core capital 159,359 3.00 416,802 7.85 257,443 4.85
Risk-based capital 218,647 8.00 450,714 16.49 232,067 8.49
</TABLE>
(a) Ratios for the three months ended September 30, 1996 and 1995 were
calculated on an annualized basis.
(b) Exclusive of the effect of the one-time SAIF assessment, the return on
average assets would have been 0.67% and 0.86% for the three months and
year ended September 30, 1996, respectively.
(c) Exclusive of the effect of the one-time SAIF assessment, the return on
average stockholders' equity would have been 6.78% and 8.20% for the three
months and year ended September 30, 1996, respectively.
(d) Exclusive of the effect of the one-time SAIF assessment, average
stockholders' equity to average assets would have been 9.88.% and 10.44%
for the three months and year ended September 30, 1996, respectively.
(e) Exclusive of the effect of the one-time SAIF assessment, stockholders'
equity to total assets would have been 9.88% for the three months and year
ended September 30, 1996, respectively.
(f) The dividend payout ratio is not meaningful for the three months ended
September 30, 1996. Exclusive of the one-time SAIF assessment, the dividend
payout ratio would have been 27.03% and 22.5% for the three months and the
year ended September 30, 1996, respectively.
