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)
January 28, 1997
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 January 28, 1997
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: January 28, 1997
<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 FIRST QUARTER EARNINGS
Melville, New York, January 28, 1997 - Long Island Bancorp, Inc.
(NASDAQ: LISB), the holding company for The Long Island Savings Bank, FSB today
reported net income of $11.9 million for the quarter ended December 31, 1996 as
compared with $11.6 million for the quarter ended December 31, 1995. Earnings
per share were $0.50 for the quarter ended December 31, 1996 compared with $0.47
for the same quarter in 1995.
Commenting on the first quarter earnings, John J. Conefry, Jr.,
Chairman of the Board, President and Chief Executive Officer stated, "During the
quarter, we grew net interest income to $40.3 million, the highest quarterly
level within the past 3 years. We reduced our General and Administrative
expenses from the quarter ended September 30, 1996 reflecting our focus on
current and future cost containment efforts. We look forward to additional G&A
reductions resulting from changes made to the Company's stock based benefit
plans which were effective January 1, 1997 and lower federal insurance premiums
resulting from the enactment of The Deposit Insurance Funds Act of 1996."
Commenting on other events this quarter, Mr. Conefry stated "our continued
strong financial performance has enabled us to increase our dividend rate by 50%
allowing shareholders to participate in our earnings growth."
EARNINGS SUMMARY FOR THE QUARTER ENDED DECEMBER 31, 1996
- --------------------------------------------------------
The Company's net interest income increased by $1.8 million to $40.3
million in the quarter ended December 31, 1996 compared with December 31, 1995.
The increase in net interest income is attributable to the growth of the average
real estate loan portfolio to $3.1 billion for the quarter ended December 31,
1996 from $2.0 billion for the quarter ended December 31, 1995. This growth was
funded by a $540.7 million reduction in the average MBS portfolio and a $532.2
million increase in average borrowed funds. The net interest margin declined to
3.09% in the 1996 quarter from 3.32% in the 1995 quarter. On a trailing quarter
basis, net interest income increased by $1.5 million over the September 30, 1996
quarter and the net interest margin remained constant at 3.09%.
Total non-interest income decreased by $0.4 million, or 4.5%, to $8.8
million in the quarter ended December 31, 1996 from the quarter ended December
31, 1995. The decline is principally due to a decrease in the net gain on
investment in real estate and premises of $2.7 million partially offset by
increases in net gains on sale activity of $1.2 million and fee income of $0.9
million. The decline in the net gain on investment in real estate reflects a
$2.0 million profit from the sale of three rental office properties that
occurred in the December 31, 1995 quarter coupled with the resultant loss of
rental income of $0.8 million from the sale of these and seven other real estate
investment properties by the Company in fiscal 1996. The $1.2 million increase
in net gains on sale activity reflects the execution of management's strategy of
periodically realizing profits in the available-for-sale loan, investment and
funding portfolios to enhance liquidity and to take advantage of higher yielding
investments as they become available. The $0.9 million growth in total fee
income is primarily attributable to increases in loan fees and service charges
and loan servicing income.
Total non-interest expense increased by $1.6 million, or 6.1%, to $27.4
million in the quarter ended December 31, 1996 compared with December 31, 1995.
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 $0.9 million due to the increase in the value of the
Company's common stock and its direct impact on stock-based compensation
expense. Office occupancy and equipment costs increased $0.5 million primarily
reflecting the Company's continued technological investments to improve its
information and communication systems. Other G&A expenses increased $0.5 million
due to additional expenditures related to the increase in mortgage origination
volume. The effect of these increases on non-interest expense was partially
mitigated by the reduction in federal insurance premiums due to a $0.5 million
credit from SAIF in accordance with legislation enacted on September 30, 1996 to
reduce the FDIC premium disparity between SAIF and BIF insured institutions.
Beginning on January 1, 1997, deposit insurance premiums are anticipated to
decline further as the Company's deposit assessment rate was reduced to 6.48
basis points from 23 basis points.
Income tax expense decreased by $0.3 million to $8.2 million for the
quarter ended December 31, 1996 as compared with the December 31, 1995 quarter.
This decrease is attributable to the decline in the effective tax rate to 40.9%
in 1996 from 42.5% in 1995. The decline in the effective tax rate principally
reflects changes in the New York State tax bad debt deduction legislation.
BALANCE SHEET SUMMARY
- ---------------------
Total assets at December 31, 1996 were $5.8 billion, an increase of
$395.5 million from the amount reported at September 30, 1996. The growth in
assets is attributable to increases of $330.7 million in total loans receivable
held for investment and $90.5 million in cash and cash equivalents. Loan volume
for the quarter ended December 31, 1996 was $767.6 million of which $187.1
million represents bulk purchases of loans.
The increase in total liabilities primarily reflects an increase in
borrowed funds of $422.9 million to $1.4 billion and a marginal increase in
deposit liabilities of $28.1 million to $3.7 billion at December 31, 1996.
Stockholders' equity increased by $6.6 million to $525.7 million during
the quarter ended December 31, 1996. The increase consists of earnings of $11.9
million, an improvement of $2.2 million, net of tax, in unrealized gain on
securities classified as available-for-sale and $2.4 million related to the
Company's stock benefit plans. These increases were partially offset by the
declaration of $3.4 million in dividends and the net purchase of treasury stock
of $6.5 million. At December 31, 1996 book value per share amounted to $21.49.
Certain reclassifications have been made to prior year amounts to
conform to the current year presentation.
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.
(Financial tables attached)
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, cost of stock-based
benefit plans, 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.
<PAGE>
<TABLE>
<CAPTION>
LONG ISLAND BANCORP, INC.
AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(IN THOUSANDS, EXCEPT SHARE DATA)
DECEMBER 31, SEPTEMBER
30,
1996 1996
--------------- ---------------
<S> <C> <C>
A S S E T S
Cash and cash equivalents (including interest-earning assets of
$110,429 and
$37,357, respectively) $ 166,822 $ 76,348
Investment in debt and equity securities, net:
Available-for-sale 164,307 180,650
Mortgage-backed securities, net:
Held-to-maturity (estimated fair value of
$19,521 and $21,120, respectively) 22,934 23,096
Available-for-sale 1,718,607 1,717,106
Stock in Federal Home Loan Bank of New York, at cost 40,754 40,754
Loans held for sale, net 51,104 57,969
Loans receivable held for investment, net:
Real estate loans, net 3,247,624 2,921,285
Commercial loans, net 7,788 7,810
Other loans, net 149,741 145,654
--------------- ---------------
Loans, net 3,405,153 3,074,749
Less allowance for possible loan losses (33,488) (33,912)
--------------- ---------------
Total loans receivable held for investment, net 3,371,665 3,040,837
Mortgage servicing rights, net 35,597 29,687
Office properties and equipment, net 89,722 89,279
Accrued interest receivable, net 33,047 32,962
Investment in real estate, net 11,865 10,680
Deferred taxes 24,983 31,207
Excess of cost over fair value of assets acquired 5,156 5,265
Prepaid expenses and other assets 22,777 27,951
--------------- ---------------
Total assets $ 5,759,340 $ 5,363,791
=============== ===============
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 $ 3,661,125 $ 3,633,010
Official checks outstanding 55,957 49,860
Borrowed funds 1,400,950 978,023
Mortgagors' escrow liabilities 44,416 64,232
Accrued expenses and other liabilities 71,205 119,572
--------------- ---------------
Total liabilities 5,233,653 4,844,697
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, 24,458,346 and 24,644,157
outstanding, respectively) 268 268
Additional paid-in capital 305,419 304,027
Unallocated Employee Stock Ownership Plan (18,658) (19,230)
Unearned Management Recognition & Retention Plan (5,088) (5,551)
Unrealized gain on securities available-for-sale, net of tax 8,870 6,633
Retained income-partially restricted 293,339 285,311
Treasury stock, at cost (2,358,118 and 2,172,307 shares, (58,463) (52,364)
respectively)
--------------- ---------------
Total stockholders' equity 525,687 519,094
--------------- ---------------
Total liabilities and stockholders' equity $ 5,759,340 $ 5,363,791
=============== ===============
</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
DECEMBER 31,
-------------------------------
1996 1995
------------- ----------------
Interest income:
<S> <C> <C>
Real estate loans $ 59,159 $ 39,672
Commercial loans 178 209
Other loans 3,904 3,648
Mortgage-backed securities 28,999 38,695
Debt and equity securities 3,730 4,503
------------- -------------
Total interest income 95,970 86,727
------------- -------------
Interest expense:
Deposits 39,438 39,421
Borrowed funds 16,276 8,895
------------- -------------
Total interest expense 55,714 48,316
------------- -------------
Net interest income 40,256 38,411
Provision for possible loan losses 1,500 1,600
------------- -------------
Net interest income after provision for possible 38,756 36,811
loan losses
Non-interest income:
Fees and other income:
Loan fees and service charges 1,005 700
Loan servicing fees 3,382 3,057
Income from insurance and securities commissions 508 327
Deposit service fees 1,528 1,460
------------- -------------
Total fee income 6,423 5,544
Other income 862 661
------------- -------------
Total fees and other income 7,285 6,205
Net gains on sale activity:
Net gains on loans and mortgage-backed securities 1,975 625
Net gains on investment in debt and equity 98 259
securities
------------- -------------
Total net gains on sale activity 2,073 884
Net (loss) gain on investment in real estate and premises (515) 2,168
------------- -------------
Total non-interest income 8,843 9,257
Non-interest expense:
General and administrative expense:
Compensation, payroll taxes and fringe benefits 14,128 13,277
Advertising 1,255 1,215
Office occupancy and equipment 5,396 4,934
Federal insurance premiums 1,905 2,217
Other general and administrative expense 4,624 4,144
------------- -------------
Total general and administrative expense 27,308 25,787
Amortization of excess of cost over fair value of assets
acquired 109 63
------------- -------------
Total non-interest expense 27,417 25,850
------------- -------------
Income before income taxes 20,182 20,218
Provision for income taxes 8,248 8,597
------------- -------------
Net income $ 11,934 $ 11,621
============= =============
Primary earnings per common share $ 0.50 $ 0.47
============= =============
Fully diluted earnings per common share $ 0.50 $ 0.47
============= =============
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
LONG ISLAND BANCORP, INC.
AND SUBSIDIARY
AVERAGE BALANCE SHEET
FOR THE THREE MONTHS ENDED DECEMBER 31,
--------------------------------------------------------------------------------------
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 $ 58,388 $ 766 5.20 % $ 37,161 $ 519 5.56 %
Debt and equity securities
and FHLB-NY stock, net (1) 213,001 2,964 5.57 282,627 3,984 5.64
Mortgage-backed securities, net 1,693,945 28,999 6.85 2,234,617 38,695 6.93
(1)
Real estate loans, net (2) 3,105,539 59,159 7.62 1,962,272 39,672 8.09
Commercial and other loans, net 140,214 4,082 11.65 114,391 3,857 13.49
(2)
-------------- ------------- -------- -------------- ------------ --------
Total interest-earning assets 5,211,087 95,970 7.37 4,631,068 86,727 7.49
Other non-interest-earning 300,439 255,077
assets
-------------- ------------- -------------- ------------
Total assets $ 5,511,526 $ 95,970 $ 4,886,145 $ 86,727
============== ============= ============== ============
INTEREST BEARING LIABILITIES:
Deposits, net $ 3,708,611 $ 39,438 4.22 % $ 3,640,018 $ 39,421 4.31 %
Borrowed funds 1,133,506 16,276 5.70 601,284 8,895 5.89
-------------- ------------- -------- -------------- ------------ --------
Total interest-bearing 4,842,117 55,714 4.57 4,241,302 48,316 4.53
liabilities
Non-interest-bearing 144,903 119,822
liabilities
-------------- --------------
Total liabilities 4,987,020 4,361,124
Total stockholders' equity 524,506 525,021
-------------- ------------- -------- -------------- ------------ --------
Total liabilities and
stockholders' equity $ 5,511,526 $ 55,714 $ 4,886,145 $ 48,316
============== ------------- ============== ------------
Net interest income/spread (3) $ 40,256 2.80 % $ 38,411 2.96 %
============= ======== ============ ========
Net interest margin as %
of interest-earning assets 3.09 % 3.32 %
(4)
======== ========
Ratio of interest-earning
assets to interest-bearing 107.62 % 109.19 %
liabilities
======== ========
</TABLE>
(1) Debt and equity and mortgage-backed securities are shown including the
average market value appreciation of $15.8 million and $13.5 million for the
three months ended December 31, 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 THREE MONTHS
ENDED DECEMBER 31,
----------------------------------
1996 1995
-------------- ---------------
SELECTED FINANCIAL RATIOS: (A)
<S> <C> <C>
Return on average assets 0.87% 0.95%
Return on average stockholders' equity 9.10 8.85
Average stockholders' equity to average assets 9.52 10.75
Stockholders' equity to total assets 9.13 10.81
Interest rate spread during period 2.80 2.96
Net interest margin 3.09 3.32
Operating expenses to average assets 1.98 2.11
Efficiency ratio 57.44 57.80
Average interest-earning assets to average
interest-bearing liabilities 107.62 109.19
Net interest income to operating expenses 1.47x 1.49x
SELECTED DATA:
Primary earnings per share $0.50 $0.47
Weighted average number of shares outstanding
for primary earnings per share computation 23,775,402 24,655,050
Fully diluted earnings per share $0.50 $0.47
Weighted average number of shares outstanding
for fully diluted earnings per share
computation 23,849,372 24,716,796
Book value per share $21.49 $20.87
Number of shares outstanding for book value per
share computation 24,458,346 25,552,573
Cash dividends declared per share $0.15 $0.10
Dividend payout ratio 30.00% 21.28%
AT DECEMBER 31,
----------------------------
1996 1995
------------ -----------
ASSET QUALITY RATIOS:
Non-performing loans to total gross loans 1.53% 2.51%
Non-performing assets to total assets 1.08 1.29
Allowance for possible loan losses to non-performing loans 63.64 62.15
REGULATORY CAPITAL AT DECEMBER 31, 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)
Tangible capital $ 85,520 1.50% $410,387 7.20% $324,867 5.70%
Core capital 171,039 3.00 410,387 7.20 239,348 4.20
Risk-based capital 234,563 8.00 443,875 15.14 209,312 7.14
</TABLE>
(a) Ratios for the three months ended December 31, 1996 and 1995 were
calculated on an annualized basis.
<PAGE>
<TABLE>
<CAPTION>
LONG ISLAND BANCORP, INC.
AND SUBSIDIARY
SUPPLEMENTAL INFORMATION
SELECTED FINANCIAL DATA - CASH EARNINGS
THREE MONTHS ENDED DECEMBER 31,
-----------------------------------------------------
1996 1995
------------------------- ------------------------
(In thousands, except per share data)
<S> <C> <C>
Net income $ 11,934 $ 11,621
Add back selected non-cash items:
Amortization of excess of cost over fair value
of assets acquired 109 63
Management Recognition & Retention Plan expense 786 352
Employee Stock Ownership Plan expense 1,354 1,009
------------------------- ------------------------
Cash earnings $ 14,183 $ 13,045
========================= ========================
Cash EPS $ 0.60 $ 0.53
========================= ========================
AT OR FOR THE THREE MONTHS
ENDED DECEMBER 31,
-----------------------------------------------------
1996 1995
------------------------- ------------------------
SELECTED FINANCIAL RATIOS BASED UPON CASH EARNINGS (A):
Cash return on average assets 1.03% 1.07%
Cash return on average stockholders' equity 10.82 9.94
Cash return on average tangible stockholders' equity 10.92 9.99
Cash operating expenses to average assets 1.82 1.99
Cash efficiency ratio 52.71 54.61
Net interest income to cash operating expenses 1.61x 1.58x
</TABLE>
(a) Ratios for the three months ended December 31, 1996 and 1995 were
calculated on an annualized basis.
