LONG ISLAND BANCORP. 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 21, 1997 - Long Island Bancorp, Inc.
(NASDAQ: LISB), the holding company for The Long Island Savings Bank, FSB today
reported net income of $49.4 million for the year ended September 30, 1997
compared with $32.3 million earned in 1996. Excluding the effect of a one-time
SAIF insurance assessment and charge for retirement costs, 1996 net income would
have been $44.3 million. On a per share basis, primary earnings per share
amounted to $2.09 and $1.33 for the year ended September 30, 1997 and 1996,
respectively. Fully diluted earnings per share amounted to $2.08 and $1.33 for
the year ended September 30, 1997 and 1996, respectively. Excluding the effect
of the one time charges, primary and fully diluted earnings per share for 1996
would have been $1.83.
For the quarter ended September 30, 1997, the Company reported net
income of $12.9 million compared with a net loss of $1.9 million reported during
the comparable 1996 quarter. Excluding the effect of the special charges, net
income for the fourth quarter of 1996 would have been $10.1 million. Primary and
fully diluted earnings (loss) per share amounted to $0.55 and $(0.08) for the
quarter ended September 30, 1997 and 1996, respectively. Excluding the effect of
the special charges, primary and fully diluted earnings per share for 1996 would
have been $0.43.
Commenting on the financial performance this quarter, John J. Conefry,
Jr., Chairman of the Board and Chief Executive Officer stated, "The Company is
pleased to report record annual earnings and the fourth consecutive quarter of
higher net income. The positive trend in earnings reflects the implementation of
the Company's strategic objectives of controlling costs, delivering attractive
loan and deposit products and continuing to retain a focus on the core customer
base. During the quarter, the Company also began to implement our strategy of
entering the small business and professional banking market, which will become
an integral part of our operations over the next several years."
Earnings Summary for the Year Ended September 30, 1997
- ------------------------------------------------------
The Company's net interest income increased by $5.2 million to $159.6
million for the year ended September 30, 1997 as compared with the year ended
September 30, 1996. The increase in net interest income is primarily
attributable to an increase of $1.0 billion in the average real estate loan
portfolio to $3.3 billion during 1997. This growth was funded by a $644.5
million increase in average borrowed funds, a $70.1 million increase in average
deposits and the redeployment of funds from MBSs which declined on average by
$226.4 million.
The combination of the incremental loan growth and redeployment of
funds enabled the Company to continue to increase net interest income and
overcome the impact of a 30 basis point decline in the average yield on real
estate loans. The decline in the average yield on real estate loans, the
flattening of the yield curve, and the inherent interest margin compression from
leveraging caused a decline in the net interest margin to 2.91% for 1997 from
3.24% in 1996.
The net interest margin and the sensitivity to interest rates is
managed by the Company through the use of many techniques. One such technique
employed during 1997 was the issuance of a five year fixed rate medium-term note
in the amount of $300.0 million and the simultaneous execution of an interest
rate swap agreement for a similar notional amount. The swap agreement converted
the fixed rate interest obligation of 7% into a variable rate of LIBOR minus 3
basis points. The Bank has the ability to borrow up to a total of $1.0 billion
under this note program.
The provision for possible loan losses was reduced by $0.2 million to
$6.0 million for the year ended September 30, 1997, from $6.2 million for 1996.
This reduction reflects the stable level of non-performing loans which at
September 30, 1997 was $47.1 million and the improvement in the ratio of
non-performing loans to gross loans at September 30, 1997 to 1.28% down from
1.70% in 1996. The allowance for possible loan losses to non-performing loans
increased to 71.97% at September 30, 1997, from 63.79% at September 30, 1996.
Total non-interest income decreased $1.0 million, or 2.6%, to $37.7
million for the year ended September 30, 1997 compared with 1996. This decrease
is attributable to declines of $0.8 million in total fees and other income and
$3.2 million in gains on investment in real estate and premises. These decreases
were offset by increased gains of $3.1 million on the sale of loans and MBSs
reflecting management's investment and loan strategy of periodically recognizing
profits during favorable market conditions. The decline in total fees and other
income reflects a $1.8 million decrease in loan servicing fees due to the
declining balance of home equity loans previously securitized. Offsetting the
decline was an increase of $0.9 million in income from insurance and securities
commissions resulting from the Company's efforts to provide a broad range of
diversified financial products and services to its customers. Gains on
investments in real estate and premises decreased by $3.2 million from the sale
of investment properties that occurred in 1996 and the resultant decline in
rental income.
Total G&A expense declined by $2.7 million to $109.2 million for the
year ended September 30, 1997 compared with 1996. This decline contributed to
the improvement of 33 basis points in the operating expense to average asset
ratio and to an improvement of 289 basis points in the efficiency ratio. The
principal component of the decline in G&A expense was the reduction in federal
insurance premiums of $4.8 million from the 1996 enactment of the BIF/SAIF
legislation and a decline in advertising costs of $0.9 million, partially offset
by increases of $2.1 million in other G&A expense and $1.1 million in office
occupancy and equipment expense. Other G&A expense rose due to improved mortgage
loan production volume during 1997 and the outsourcing of computer and check
processing operations. This outsourcing permitted the Company to absorb normal
salary growth and incremental commission costs without increasing its overall
compensation expense. The increase in office occupancy and equipment expense
reflects depreciation costs arising from technological investments in
information and communication systems coupled with greater rental costs from the
acquisitions of mortgage origination offices of Fleet Mortgage Company and First
Home of Virginia, Inc. that occurred in June 1996 and August 1996, respectively.
Income tax expense increased $8.5 million, to $32.2 million due to an
increase of $25.6 million in pre-tax income, partially offset by the decline in
the effective tax rate to 39.5% for the year ended September 30, 1997 from 42.4%
for 1996. The decline in the effective tax rate principally reflects changes in
the New York State and New York City tax bad debt regulations.
Earnings Summary for the Quarter Ended September 30, 1997
- ---------------------------------------------------------
Net interest income increased by $0.4 million, or 1.0%, to $39.1
million during the quarter ended September 30, 1997 compared with the same
period in 1996. The increase in net interest income is attributable to the
growth of the average real estate loan portfolio to $3.5 billion for the quarter
ended September 30, 1997 from $2.9 billion for the same period in 1996. This
growth was funded primarily by a $518.8 million increase in average borrowed
funds, and a $88.0 million increase in average deposits. The net interest margin
declined to 2.77% in the 1997 period from 3.09% in the 1996 period for the
reasons mentioned in the discussion of earnings for the year ended September 30,
1997.
Due to factors previously discussed, total fees and other income
decreased $1.1 million resulting from the decline in loan servicing fee income
of $1.5 million partially offset by an increase of $0.4 million in income from
insurance and securities commissions. Additionally, net gains on asset sales
increased $1.2 million during the 1997 quarter due to higher MBS sales.
Total G&A expense decreased by $4.8 million, or 15.2%, to $26.9 million
for the quarter ended September 30, 1997 compared with the same period in 1996.
Contributing to this decrease were reductions in compensation and benefits
expense of $3.1 million, office occupancy and equipment costs of $0.7 million
and federal insurance premiums of $1.5 million. Compensation expense decreased
partially due to a $1.2 million reduction related to the Company's stock benefit
plans and the one-time charge for retirement costs that occurred in 1996.
Federal insurance premiums decreased due to the BIF/SAIF legislation mentioned
above. The effect of these decreases was partially offset by a $0.6 million
increase in other G&A expense stemming from incremental, volume-driven mortgage
expenses.
Income tax expense increased to $7.9 million for the quarter ended
September 30, 1997 as the result of an increase of $23.8 million in pre-tax
income for the 1997 period as compared to the 1996 period.
Balance Sheet Summary
- ---------------------
Total assets at September 30, 1997 were $5.9 billion, an increase of
$567.0 million since September 30, 1996. The growth in assets is predominantly
attributable to an increase of $543.0 million in total loans receivable held for
investment and for sale. Loan volume for the year ended September 30, 1997 was
$2.6 billion (of which $227.5 million represents bulk purchases of loans), an
increase of $203.4 million over the 1996 period.
The increase in total liabilities from a year ago primarily reflects an
increase in borrowed funds of $523.4 million to $1.5 billion and an increase in
deposit liabilities of $97.5 million to $3.7 billion at September 30, 1997.
Stockholders' equity increased by $27.3 million to $546.4 million since
September 30, 1996. The increase consists of earnings of $49.4 million, an
increase in unrealized gains on securities classified as available-for-sale, net
of tax, of $6.3 million and $6.3 million related to the Company's stock benefit
plans. These increases were offset by the net purchase of treasury stock of
$21.4 million and the declaration of $13.3 million in dividends. At September
30, 1997 book value per share amounted to $22.74.
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 35 full
service branch offices throughout Queens,Nassau and Suffolk counties. The Bank
also operates mortgage loan offices across Long Island and in New Jersey,
Pennsylvania, Maryland, Virginia, North Carolina, South Carolina and Georgia
and has an Internet home page at the address: http://www.lisb.com.
(Financial tables attached)
This document may contain 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 Company'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
Securities and Exchange Commission.
<PAGE>
<TABLE>
<CAPTION>
LONG ISLAND BANCORP, INC
AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(In thousands, except share data)
SEPTEMBER 30,
1997 1996
<S> ------------ ------------
ASSETS <C> <C>
- -------
Cash and cash equivalents (including interest-earning assets of $9,735 and
$37,357, respectively) ..................................................... $ 43,705 $ 76,348
Investment in debt and equity securities, net:
Available-for-sale ....................................................... 138,578 180,650
Mortgage-backed securities, net:
Held-to-maturity (estimated fair value of
$20,188 and $21,120, respectively) .................................... 22,223 23,096
Available-for-sale ....................................................... 1,808,471 1,717,106
Stock in Federal Home Loan Bank of New York, at cost ........................... 48,724 40,754
Loans held for sale, net ....................................................... 157,617 57,969
Loans receivable held for investment, net:
Real estate loans, net ................................................... 3,333,185 2,921,285
Commercial loans, net .................................................... 6,465 7,810
Other loans, net ......................................................... 178,325 145,654
------------ ------------
Loans, net ............................................................... 3,517,975 3,074,749
Less allowance for possible loan losses .................................. (33,881) (33,912)
------------ ------------
Total loans receivable held for investment, net .......................... 3,484,094 3,040,837
Mortgage servicing rights, net ................................................. 41,789 29,687
Office properties and equipment, net ........................................... 88,466 89,279
Accrued interest receivable, net ............................................... 35,334 32,962
Investment in real estate, net ................................................. 9,103 10,680
Deferred taxes ................................................................. 16,547 31,207
Excess of cost over fair value of assets acquired .............................. 5,069 5,265
Prepaid expenses and other assets .............................................. 31,064 27,951
------------ ------------
Total assets ................................................................... $ 5,930,784 $ 5,363,791
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
- ------------------------------------
Liabilities:
Deposits ................................................................. $ 3,730,503 $ 3,633,010
Official checks outstanding .............................................. 26,840 49,860
Borrowed funds ........................................................... 1,501,456 978,023
Mortgagors' escrow liabilities ........................................... 69,353 64,232
Accrued expenses and other liabilities ................................... 56,257 119,572
------------ ------------
Total liabilities .............................................................. 5,384,409 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, 24,022,924 and 24,644,157 outstanding,respectively) 268 268
Additional paid-in capital ............................................... 309,372 304,027
Unallocated Employee Stock Ownership Plan ................................ (18,079) (19,230)
Unearned Management Recognition & Retention Plan ......................... (3,816) (5,551)
Unrealized gain on securities available-for-sale, net of tax ............. 12,947 6,633
Retained income-partially restricted ..................................... 319,756 285,311
Treasury stock, at cost (2,793,540 and 2,172,307 shares, respectively) ... (74,073) (52,364)
------------ ------------
Total stockholders' equity .................................................... 546,375 519,094
------------ ------------
Total liabilities and stockholders' equity ..................................... $ 5,930,784 $ 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 FOR THE YEAR ENDED
SEPTEMBER 30, SEPTEMBER 30,
----------------------------------------------------------
1997 1996 1997 1996
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
Interest income:
Real estate loans $ 65,692 $ 54,541 $ 249,843 $ 185,241
Commercial loans 131 152 604 705
Other loans 4,168 3,851 15,817 14,845
Mortgage-backed securities 29,069 28,842 117,110 134,064
Debt and equity securities 4,336 4,034 15,675 16,716
------------- ------------- ------------- -------------
Total interest income 103,396 91,420 399,049 351,571
------------- ------------- ------------- -------------
Interest expense:
Deposits 41,589 39,044 159,807 155,830
Borrowed funds 22,681 13,650 79,681 41,346
------------- ------------- ------------- -------------
Total interest expense 64,270 52,694 239,488 197,176
------------- ------------- ------------- -------------
Net interest income 39,126 38,726 159,561 154,395
Provision for possible loan losses 1,500 1,500 6,000 6,200
------------- ------------- ------------- -------------
Net interest income after provision for possible 37,626 37,226 153,561 148,195
loan losses
------------- ------------- ------------- -------------
Non-interest income:
Fees and other income:
Loan fees and service charges 1,061 944 3,721 3,217
Loan servicing fees 3,124 4,648 12,031 13,863
Income from insurance and securities commissions 747 368 2,499 1,608
Deposit service fees 1,343 1,518 5,559 5,937
------------- ------------- ------------- -------------
Total fee income 6,275 7,478 23,810 24,625
Other income 1,153 1,050 3,710 3,718
------------- ------------- ------------- -------------
Total fees and other income 7,428 8,528 27,520 28,343
------------- ------------- ------------- -------------
Net gains on sale activity:
Net gains on loans and mortgage-backed securities 3,739 2,676 11,064 7,993
Net(loss) gain on investment in debt and equity
securities ----- (88) 335 340
------------- ------------- ------------- -------------
Total net gains on sale activity 3,739 2,588 11,399 8,333
Net (loss) gain on investment in real estate and premises (913) (835) (1,205) 2,028
------------- ------------- ------------- -------------
Total non-interest income 10,254 10,281 37,714 38,704
Non-interest expense:
General and administrative expense:
Compensation, payroll taxes and fringe benefits 13,741 16,812 57,728 57,969
Advertising 1,465 1,673 5,027 5,940
Office occupancy and equipment 5,021 5,679 21,746 20,631
Federal insurance premiums 783 2,287 4,256 9,055
Other general and administrative expense 5,872 5,233 20,428 18,328
------------- ------------- ------------- -------------
Total general and administrative expense 26,882 31,684 109,185 111,923
SAIF special assessment --- 18,657 --- 18,657
Amortization of excess of cost over fair value of assets
acquired 114 94 458 284
------------- ------------- ------------- -------------
Total non-interest expense 26,996 50,435 109,643 130,864
------------- ------------- ------------- -------------
Income (loss) before income taxes 20,884 (2,928) 81,632 56,035
Provision for income tax expense (benefit) 7,941 (1,026) 32,212 23,760
------------- ------------- ------------- -------------
Net income (loss) $ 12,943 $ (1,902) $ 49,420 $ 32,275
============= ============= ============= =============
Primary earnings (loss) per common share $ 0.55 $ (0.08) $ 2.09 $ 1.33
============= ============= ============= =============
Fully diluted earnings (loss) per common share $ 0.55 $ (0.08) $ 2.08 $ 1.33
============= ============= ============= =============
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
LONG ISLAND BANCORP, INC.
AND SUBSIDIARY
AVERAGE BALANCE SHEET
FOR THE THREE MONTHS ENDED SEPTEMBER 30,
---------------------------------------------------------------------------------------------
1997 1996
-------------------------------------------- ----------------------------------------------
AVERAGE AVERAGE
AVERAGE YIELD\ AVERAGE YIELD\
BALANCE INTEREST COST BALANCE INTEREST COST
-------------- ------------ -------------- -------------- ------------- ---------------
(DOLLARS IN THOUSANDS)
<S> <C> <C> <C> <C> <C> <C>
INTEREST-EARNING ASSETS:
Interest-earning cash
equivalents $ 98,935 $ 1,455 5.83 % $ 29,641 $ 378 5.07 %
Debt and equity securities
and FHLB-NY stock, net (1) 188,839 2,881 6.10 263,101 3,656 5.56
Mortgage-backed securities,net(1) 1,716,907 29,069 6.77 1,681,810 28,842 6.86
Real estate loans, net (2) 3,488,010 65,692 7.53 2,899,104 54,541 7.53
Commercial and other loans,net (2) 163,403 4,299 10.52 136,012 4,003 11.77
-------------- ------------ ------------ -------------- ------------- ------------
Total interest-earning assets 5,656,094 103,396 7.31 5,009,668 91,420 7.30
Other non-interest-earning assets 230,832 282,313
-------------- ------------ -------------- -------------
Total assets $ 5,886,926 $ 103,396 $ 5,291,981 $ 91,420
============== ============ ============== =============
INTEREST BEARING LIABILITIES:
Deposits, net $ 3,770,510 $ 41,589 4.38 % $ 3,682,553 $ 39,044 4.22 %
Borrowed funds 1,481,856 22,681 6.07 963,080 13,650 5.64
-------------- ------------ ------------ -------------- ------------- ------------
Total interest-bearing liabilities 5,252,366 64,270 4.85 4,645,633 52,694 4.51
Non-interest-bearing liabilities 94,236 125,372
-------------- --------------
Total liabilities 5,346,602 4,771,005
Total stockholders' equity 540,324 520,976
-------------- ------------ ------------ -------------- ------------- ------------
Total liabilities and
stockholders' equity $ 5,886,926 $ 64,270 $ 5,291,981 $ 52,694
============== ------------ ============== -------------
Net interest income/spread(3) $ 39,126 2.46 % $ 38,726 2.79 %
============ ============ ============= ============
Net interest margin as %
of interest-earning assets(4) 2.77 % 3.09 %
============ ============
Ratio of interest-earning assets
to interest-bearing liabilties 107.69 % 107.84 %
============ ============
</TABLE>
(1) Debt and equity and mortgage-backed securities are shown including the
average market value appreciation of $20.2 million and $3.4 million for the
three months ended September 30, 1997 and 1996, 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,
------------------------------------------------------------------------------------------
1997 1996
------------------------------------------- --------------------------------------------
AVERAGE AVERAGE
AVERAGE YIELD/ AVERAGE YIELD/
BALANCE INTEREST COST BALANCE INTEREST COST
-------------- ------------ ------------- -------------- ------------- --------------
(DOLLARS IN THOUSANDS)
<S> <C> <C> <C> <C> <C> <C>
INTEREST-EARNING ASSETS:
Interest-earning cash
equivalents $ 72,131 $ 3,963 5.49 % $ 32,109 $ 1,708 5.32 %
Debt and equity securities
and FHLB-NY stock, net(1) 203,100 11,712 5.77 268,344 15,008 5.59
Mortgage-backed securities,net(2) 1,725,781 117,110 6.79 1,952,217 134,064 6.87
Real estate loans, net (2) 3,339,541 249,843 7.48 2,380,633 185,241 7.78
Commercial and other loans,net(2) 149,859 16,421 10.96 125,629 15,550 12.38
-------------- ------------ ----------- -------------- ------------- ------------
Total interest-earning assets 5,490,412 399,049 7.27 4,758,932 351,571 7.39
Other non-interest-earning assets 251,584 268,355
-------------- ------------ -------------- -------------
Total assets $ 5,741,996 $ 399,049 $ 5,027,287 $ 351,571
============== ============ ============== =============
INTEREST-BEARING LIABILITIES:
Deposits, net $ 3,727,611 $ 159,807 4.29 % $ 3,657,503 155,830 4.26 %
Borrowed funds 1,368,982 79,681 5.82 724,448 41,346 5.71
-------------- ------------ ----------- -------------- ------------- ------------
Total interest-bearing liabilities 5,096,593 239,488 4.70 4,381,951 197,176 4.50
Non-interest-bearing liabilities 115,842 120,982
-------------- --------------
Total liabilities 5,212,435 4,502,933
Total stockholders' equity 529,561 524,354
-------------- ------------ ----------- -------------- ------------- ------------
Total liabilities and
stockholders'equity $ 5,741,996 $ 239,488 $ 5,027,287 $ 197,176
============== ------------ ============== -------------
Net interest income/spread (3) $ 159,561 2.57 % $ 154,395 2.89 %
============ =========== ============= ============
Net interest margin as %
of interest-earning assets(4) 2.91 % 3.24 %
=========== ============
Ratio of interest-earning assets
assets to interest-bearing liabilities 107.73 % 108.60 %
=========== ============
</TABLE>
(1) Debt and equity and mortgage-backed securities are shown including the
average market value appreciation of $17.4 million and $12.7 million for the
year ended September 30, 1997 and 1996, 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 At or for the Year
Ended September 30, Ended September 30,
---------------------------------- ----------------------------------
1997 1996 1997 1996
-------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C>
Selected Financial Ratios: (a)
Return on average assets (b)................... 0.88% (0.14)% 0.86% 0.64%
Return on average stockholders' equity (c).... 9.58 (1.46) 9.33 6.16
Average stockholders' equity to average assets (d) 9.18 9.84 9.22 10.43
Stockholders' equity to total assets (e)...... 9.21 9.68 9.21 9.68
Interest rate spread during period............. 2.46 2.79 2.57 2.89
Net interest margin............................ 2.77 3.09 2.91 3.24
Operating expenses to average assets........... 1.83 2.40 1.90 2.23
Efficiency ratio............................... 57.74 67.05 58.36 61.25
Average interest-earning assets to average
interest-bearing liabilities 107.69 107.84 107.73 108.60
Net interest income to operating expenses ..... 1.46x 1.22x 1.46x 1.38x
Selected Data:
Primary earnings (loss) per share.............. $0.55 $(0.08) $2.09 $1.33
Weighted average number of shares outstanding
for primary earnings per share 23,449,566 23,810,822 23,595,529 24,220,480
computation
Fully diluted earnings (loss) per share....... $0.55 $(0.08) $2.08 $1.33
Weighted average number of shares outstanding
for fully diluted earnings per share 23,536,101 23,821,719 23,755,249 24,227,013
computation
Book value per share........................... $22.74 $21.06 $22.74 $21.06
Number of shares outstanding for book value per
share computation........................... 24,022,924 24,644,157 24,022,924 24,644,157
Cash dividends declared per share.............. $0.15 $0.10 $0.60 $0.40
Dividend payout ratio.......................... 27.27% (f) 28.71% 30.08%
At September 30,
----------------------------
1997 1996
------------ -----------
Asset Quality Ratios:
Non-performing loans to total gross loans.................... 1.28% 1.70%
Non-performing assets to total assets........................ 0.92 1.14
Allowance for possible loan losses to non-performing loans... 71.97 63.79
Regulatory Capital at September 30, 1997 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........................... $ 87,962 1.50% $454,199 7.75% $366,237 6.25%
Core capital............................... 175,924 3.00 454,199 7.75 278,275 4.75
Risk-based capital......................... 253,100 8.00 488,080 15.43 234,980 7.43
</TABLE>
(a) Ratios for the three months ended September 30, 1997 and 1996 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, average
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 mentioned for the three months ended
September 30, 1996 due to the loss incurred in this period. Exclusive of
the one-time SAIF assessment, the dividend payout ratio would have been
27.03% and 22.5% for the three months and year ended September 30,1996,
respectively.
<PAGE>
<TABLE>
<CAPTION>
LONG ISLAND BANCORP, INC.
AND SUBSIDIARY
SUPPLEMENTAL INFORMATION
SELECTED FINANCIAL DATA - CASH EARNINGS
Three Months Ended Year Ended
September 30, September 30,
------------------------------ --------------------------------
1997 1996 1997 1996
-------------- --------------- ------------- --------------
(In thousands, except per sharedata)
<S> <C> <C> <C> <C>
Net income (loss) $ 12,943 $ (1,902) $ 49,420 $ 32,275
Add back selected non-cash items:
Amortization of excess of cost over fair value
of assets acquired 114 94 458 284
Management Recognition & Retention Plan and
Employee Stock Ownership Plan expense 811 2,009 5,401 7,067
-------------- --------------- -------------- ---------------
Cash earnings $ 13,868 $ 201 $ 55,279 $ 39,626
============== =============== ============== ===============
Cash EPS (a) $ 0.59 $ 0.01 $ 2.34 $ 1.64
============== =============== ============== ===============
At or for the Three Months At or for the Year
Ended September 30, Ended September 30,
--------------------------------- --------------------------------
1997 1996 1997 1996
-------------- -------------- -------------- ---------------
Selected Financial Ratios Based Upon Cash Earnings (b):
Cash return on average assets................................. 0.94% 0.02% 0.96% 0.79%
Cash return on average stockholders' equity................... 10.27 0.15 10.44 7.56
Cash return on average tangible stockholders' equity.......... 10.36 0.16 10.54 7.63
Cash operating expenses to average assets..................... 1.76 2.24 1.80 2.08
Cash efficiency ratio......................................... 55.76 62.60 55.23 57.22
Net interest income to cash operating expenses................ 1.51 1.31 1.54 1.48
</TABLE>
(a) Cash EPS was calculated based on the weighted average number of shares
outstanding for primary EPS computation.
(b) Ratios for the three months ended September 30, 1997 and 1996 were
calculated on an annualized basis.
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