SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
Quarterly Report Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1933
For the Quarter Ended March 31, 1996 Commission File #0-26546
STATEWIDE FINANCIAL CORP.
(Exact name of registrant as specified in its charter)
New Jersey 22 3397900
(State of Incorporation) (I.R.S. Employer Identification
Number)
70 Sip Avenue, Jersey City, New Jersey 07306
(Address of registrant's principal executive offices,
including zip code)
(201) 795-4000
(Registrant's telephone number, including area code)
Indicate by check mark whether the registrant: (1) has filed all
reports required to be filed by Section 13 or 15(d) of the Securities
Exchange Act of 1934 during the preceding 12 months (or for such
shorter period that the registrant was required to file such reports),
and (2) has been subject to such filing requirements for the past 90
days:
Yes X No
The number of shares outstanding of each of the registrant's classes
of common stock, as of April 30, 1996: Common Stock, No Par Value:
5,269,752 shares outstanding.<PAGE>
STATEWIDE FINANCIAL CORP. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(DOLLARS IN THOUSANDS,EXCEPT PER SHARE DATA)
Three Months Ended
March 31,
---------
1996 1995
---- ----
INTEREST INCOME:
Interest and fees on loans $4,258 $3,612
Interest on mortgage-backed securities 5,193 3,641
Interest and dividends on investment
securities 1,289 1,078
Dividends on FHLBNY stock 90 76
------ ------
Total interest and dividend income 10,830 8,407
------ ------
INTEREST EXPENSE:
Deposits 4,250 3,393
Borrowed funds 1,379 746
------ ------
Total interest expense 5,629 4,139
------ ------
NET INTEREST INCOME 5,201 4,268
Provision for loan losses 125 74
------ ------
NET INTEREST INCOME AFTER PROVISION
FOR LOAN LOSSES 5,076 4,194
NON-INTEREST INCOME:
Service charges 239 253
Other income 425 271
------ ------
Total non-interest income 664 524
------ ------
NON-INTEREST EXPENSE:
Salaries and employee benefits 2,090 1,497
Occupancy, net 521 398
Federal deposit insurance premiums 277 292
Professional fees 142 107
Insurance premiums 88 65
Data processing fees 62 85
Foreclosed real estate expense, net 62 151
Other 616 640
------ ------
Total non-interest expense 3,858 3,235
------ ------
Income before income taxes 1,882 1,483
Income taxes 677 560
------ ------
Net Income $1,205 $ 923
====== ======
Net Income Per Share of Common Stock $0.25 n/a
====== ======
See accompanying notes to consolidated financial statements<PAGE>
STATEWIDE FINANCIAL CORP. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(DOLLARS IN THOUSANDS)
March 31, December 31,
1996 1995
---- ----
(Unaudited)
ASSETS
Cash and amounts due from depository
institutions $ 5,247 $ 6,553
Federal funds sold 700 1,650
------- -------
Total cash and cash equivalents 5,947 8,203
Mortgage-backed securities available for
sale 316,679 260,107
Debt and equity securities available
for sale 69,155 80,126
Loans receivable, net 223,184 195,773
Accrued interest receivable, net 4,688 4,410
Real estate owned, net 670 652
Premises and equipment, net 5,059 4,819
Federal Home Loan Bank stock, at cost 6,288 3,627
Excess of cost over fair value of net
assets acquired 203 214
Other assets 2,591 1,118
------- -------
Total assets $634,464 $559,049
======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Deposits $444,819 $438,021
Borrowed funds 114,314 44,703
Advance payments by borrowers for
taxes and insurance 1,327 1,033
Accounts payable and other liabilities 3,583 2,977
------- -------
Total liabilities 564,043 486,734
------- -------
Shareholders' Equity 70,421 72,315
------- -------
Commitments and Contingencies
Total liabilities and shareholders'
equity $634,464 $559,049
======== ========
See accompanying notes to consolidated financial statements<PAGE>
STATEWIDE FINANCIAL CORP. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(DOLLARS IN THOUSANDS)
Three Months Ended
March 31,
---------
1996 1995
---- ----
Cash flows from operating activities:
Net income $ 1,205 $ 923
Adjustments to reconcile net income to net
cash provided by operating activities:
Provision for loan losses 125 74
Depreciation and amortization 155 113
Net amortization of deferred premiums and
unearned discounts 466 38
Net (gain) loss on sale of real estate owned 8 (60)
Changes in assets and liabilities:
(Increase) decrease in accrued interest
and dividends receivable (279) 355
Increase in accrued interest payable 444 64
Decrease (Increase) in other assets 268 (75)
Increase in accounts payable and other
liabilities 162 385
------ ------
Net cash provided by operating
activities 2,554 1,817
------ ------
Cash flows from investing activities:
Principal collections and repayments of
loans 10,134 5,746
Purchase of loans (26,830) -
Origination of loans (10,978) (4,239)
Principal repayments from mortgage-backed
securities - 4,624
Principal repayments from mortgage-backed
securities available for sale 17,233 206
Purchase of mortgage-backed securities (78,162) -
Purchase of debt and equity securities - (10,000)
Proceeds from maturities of debt securities 10,000 1,000
Purchase of FHLBNY stock (2,661) -
Proceeds from sale of real estate owned 133 468
Purchases of premises and equipment (383) (295)
------ ------
Net cash (used in) investing activities (81,514) (2,490)
------ ------
Cash flows from financing activities:
Net increase in deposits 6,798 3,170
Repayment of FHLBNY borrowings (57,091) (28,725)
Borrowings from FHLBNY 126,702 25,350
Increase in advance payments by
borrowers for taxes and insurance 295 4
------ ------
Net cash provided by (used in)
financing activities 76,704 (201)
------ ------
Net (decrease) in cash and cash
equivalents (2,256) (874)
Cash and cash equivalents at beginning of
period 8,203 8,059
------ ------
Cash and cash equivalents at end of period $ 5,947 $ 7,185
======= =======
Supplemental disclosures of cash flow
information:
Cash paid during the period for:
Income taxes $ 97 $ -
======= =======
Interest $ 5,185 $ 4,063
======= =======
Unrealized gain (loss), net of income tax,
on securities available for sale $(3,099) $ 60
======= =======
See accompanying notes to consolidated financial statements<PAGE>
STATEWIDE FINANCIAL CORP. AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. Basis of Presentation
The consolidated financial statements include the accounts of
Statewide Financial Corp. (the "Company") and its wholly owned
subsidiary, Statewide Savings Bank, S.L.A. (the "Bank"), and the
Bank's wholly owned subsidiaries, Seventy Sip Corporation, Statewide
Atlantic Corporation and Statewide Financial Services, Inc. All
significant intercompany balances and transactions have been
eliminated in consolidation. The Bank and Statewide Financial
Services, Inc. are the only active subsidiaries at March 31, 1996.
The Bank operates sixteen banking offices in Hudson, Union, Bergen and
Passaic counties; and through its wholly owned subsidiary, Statewide
Financial Services, Inc., the Bank also engages in the sale of annuity
products. Both the Company and the Bank are subject to supervision
and regulation by various agencies including the New Jersey Department
of Banking, the Office of Thrift Supervision and the Federal Deposit
Insurance Corporation.
The consolidated financial statements contained herein have been
prepared without audit in accordance with the rules and regulations of
the Securities and Exchange Commission and reflect all adjustments
which, in the opinion of management, are necessary for a fair
statement of the results for interim periods. All adjustments made
were of a normal recurring nature. These Consolidated Financial
Statements should be read in conjunction with the Consolidated
Financial Statements and the notes thereto that are included in the
Company's Transition Report on Form 10-K for the fiscal period ended
December 31, 1995.
2. Shareholders' Equity
The components of shareholders' equity were as follows:
March 31, December 31,
1996 1995
---- ----
(Dollars in thousands)
Preferred stock, no par value, 2,000,000
shares authorized; no shares issued or
outstanding $ - $ -
Common Stock, no par value, 12,000,000 shares
authorized; 5,269,752 shares issued - -
Additional paid in capital 50,770 50,770
Unallocated ESOP shares (4,232) (4,232)
Retained earnings - substantially restricted 24,742 23,537
Net unrealized gain (loss) net of income tax
on securities available for sale (859) 2,240
------ -------
Total shareholders' equity $70,421 $72,315
======= =======
3. Net Income Per Share
On September 29, 1995, the Company completed an initial public
offering of its common stock. Accordingly, net income per share
calculations for any period prior to September 30, 1995 did not exist.
4. Non-Performing Loans and the Allowance for Loan Losses
Non-performing loans were as follows:
March 31, December 31,
1996 1995
---- ----
(Dollars in thousands)
Loans delinquent 90 days or more and other
non-performing loans $6,378 $5,621
====== ======
Loans delinquent 90 days or more and other
non-performing loans as a percentage of
total loans outstanding 2.86% 2.87%
==== ====
An analysis of the allowance for loan losses for the three month
periods ended March 31, 1996 and 1995 follows:
March 31, March 31,
1996 1995
---- ----
(Dollars in thousands)
Balance at beginning of period $3,241 $3,062
Provision charged to operations 125 74
Charge offs, net (35) (88)
----- -----
Balance at end of period $3,331 $3,048
====== ======<PAGE>
STATEWIDE FINANCIAL CORP. AND SUBSIDIARY
SELECTED FINANCIAL AND REGULATORY RATIOS AND OTHER DATA
At or for the
Three Months Ended
March 31,
---------
1996 1995
---- ----
SELECTED FINANCIAL RATIOS (1):
Return on Average Assets .78% .78%
Return on Average Equity 6.70% 17.28%
Shareholders' Equity to Assets 11.10% 4.63%
Net Interest Rate Spread (2) 2.94% 3.56%
Net Interest Margin (3) 3.44% 3.73%
Non-Interest Income to Average Assets .43% .44%
Non-Interest Expense to Average Assets 2.49% 2.74%
Efficiency Ratio (4) 71.66% 68.57%
Average Interest Earning Assets to
Average Interest Earning Liabilities 113.35% 104.57%
March 31, December 31,
1996 1995
---- ----
REGULATORY CAPITAL RATIOS:
Tangible Capital Ratio 11.12% 10.28%
Core Capital Ratio 11.12% 10.28%
Risk-Based Capital Ratio 36.22% 32.88%
ASSET QUALITY RATIOS:
Non-Performing Loans to Total Net
Loans 2.86% 2.87%
Non-Performing Loans to Total Assets 1.01% 1.01%
Non-Performing Assets to Total
Assets 1.11% 1.12%
Allowance for Loan Losses to
Non-performing Loans 52.23% 57.66%
Allowance for Loan Losses to Total
Net Loans 1.49% 1.66%
OTHER DATA:
Number of Deposit Accounts 50,928 50,062
Number of Offices 16 15
Notes to Selected Financial Ratios
(1) Ratios are annualized where appropriate.
(2) Interest rate spread represents the difference between the
weighted average yield on average interest-earning assets
and the weighted average costs of average interest bearing
liabilities.
(3) Net interest margin represents net interest income as a
percent of average interest earning assets.
(4) Total non-interest expense divided by the sum of net interest
income after provision for loan losses, and recurring
non-interest income.<PAGE>
STATEWIDE FINANCIAL CORP. AND SUBSIDIARY
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
Overview
The following discussion and analysis refers to Statewide Financial
Corp. (the "Company") and its wholly-owned subsidiary, Statewide
Savings Bank, S.L.A. (the "Bank"). The Company was organized on May
31, 1995 for the purpose of acquiring all of the capital stock of the
Bank.
For the quarter ended March 31, 1996, the Company had net income of
$1.2 million, or $0.25 per share, as compared to net income of $0.9
million for the prior year period. The increase primarily reflects
the continued growth in the Company's balance sheet, made possible
through the infusion of new capital into the Company from the
September 1995 initial public offering, offset by the continued
efforts of the Company to position itself for future growth.
The Company completed its initial public offering of its common stock
on September 29, 1995. Accordingly, per share data did not exist for
the prior period.
Financial Condition
At March 31, 1996, shareholders' equity amounted to $70.4 million
compared to $72.3 million at December 31, 1995. The ratio of
shareholders' equity to total assets was 11.1% at March 31, 1996
compared to 12.94% at December 31, 1995. The decrease in
shareholders' equity resulted principally from an unrealized holding
loss of $3.1 million, net of tax, of the Company's available for sale
investment portfolio experienced upon a 100 basis point increase in
interest rates during the end of the current quarter, partially offset
by the addition of $1.2 million from the current quarter's net income.
Total assets at March 31, 1996 were $634.5 million, an increase of
$75.4 million from the December 31, 1995 year end balance of $559.0
million. Investment activities and lending activities were the
principal reasons for this growth. The growth was primarily funded
through additional short term borrowing over amounts outstanding at
December 31, 1995.
Investments increased $45.6 million during the quarter to $385.8
million from $340.2 million at December 31, 1995. This growth
resulted from continuation of the Company's strategy of leveraging its
excess capital. During the quarter, the Company purchased $78.2
million of mortgage-backed securities which had average lives,
considering expected prepayments, consistent with five and ten year
Treasury instruments. These investments have anticipated yields of
6.92% based upon estimated prepayment speeds at quarter end. Also
during the quarter, loans receivable, net, increased $27.4 million to
$223.2 million at March 31, 1996 from $195.8 million at December 31,
1995. The primary increase was in one to four family first mortgage
loans which increased by $24 million, net of amortization, from
December 31, 1995. During the quarter, the Company purchased $26.8
million of loans and originated $11.0 million. These loans have
anticipated yields of 6.81% based upon estimated prepayment speeds at
March 31, 1996.
Asset growth during the quarter has been primarily funded with short
term borrowing, as supplemented by deposit growth. Short term
borrowing increased $69.6 million during the quarter to $114.3 million
at March 31, 1996. The borrowing is comprised of overnight borrowing
with the Federal Home Loan Bank of New York (the "FHLB"), and
securities sold under agreements to repurchase. Costs for these
borrowings approximated 5.25% at March 31, 1996. All of these
borrowings mature before June 30, 1996 and it is the intention of the
Company to keep its borrowing maturities short term, subject to
prevailing market interest rates, at least into the third calendar
quarter of 1996.
Deposits grew $6.8 million from $438.0 million at December 31, 1995 to
$444.8 million at March 31, 1996. Within this growth, core deposits
increased 4.9% or $11.1 million. The change in core deposits was the
result of 1)marketing efforts by the Company as it has opened three
branches since May 1995, and established deposit agreements with
several affinity groups, and 2)transfers of balances from depositors
who preferred the liquidity of lower cost savings accounts to the
lower certificates of deposit ("CD") market interest rates which were
being offered during the current quarter.
Results of Operations
Net Income. For the three months ended March 31, 1996, net income
increased by $282 thousand, or 30.6%, to $1,205,000 from $923 thousand
for the same period last year. The increase in net income was
primarily a result of an increase in net interest income partially
offset by an increase in non-interest expense.
Interest Income. Total interest and dividend income increased $2.4
million, or 28.8%, to $10.8 million for the three months ended March
31, 1996 from $8.4 million for the three months ended March 30, 1995.
This growth in interest income is the result of a $146.8 million, or
32%, increase in the average balance of total interest-earning assets
over the comparable period last year, mitigated by a decrease in the
average yield on total interest-earning assets to 7.17% during the
current quarter, compared to 7.35% during the quarter ended March 31,
1995. The change in the average balances of interest-earning assets
between the prior year quarter and this quarter was principally
affected by: 1)investment of the proceeds from the Company's initial
public offering at the end of September 1995, and 2) investment of
funds borrowed from the FHLB during the period since the Company's
initial public offering, partially offset by 3)mortgage loan and
mortgage-backed securities principal amortization and prepayments, as
accelerated due to low long term interest rates during the period
between March 1995 and March 1996. Interest-earning assets most
affected by this net increase in average balances were mortgage-backed
securities and first mortgage loans. The decline in average yield
reflects reinvestment of mortgage principal repayments and
amortization, as well as securities' maturities, at lower rates than
were previously earned.
The actual balance of interest-earning assets at March 31, 1996
exceeded the average balance for the three months then ended,
reflecting growth in the balance sheet as reviewed under the financial
condition section of this discussion. The average yield of the
interest-earning assets at March 31, 1996 was 7.12% compared to 7.17%
for the three month period ended March 31, 1996. This reflects the
continued redeployment of mortgage principal repayments and
amortization, as well as securities' maturities, at lower rates than
were previously earned.
Interest Expense. Interest expense increased $1.5 million, or 36.0%,
during the current quarter compared to the same quarter a year ago.
Interest expense on deposits increased $857 thousand, or 25.3%, and
interest expense on borrowed funds increased $633 thousand, or 84.9%.
The average balance of deposits increased $34.2 million, or 8.6%, for
the quarter ended March 31, 1996 over the same quarter in the prior
year. In addition, the average cost of the deposits grew to 3.94% for
the quarter ended March 31, 1996 as compared to 3.42% for the same
period in the previous year. This cost increase reflects a change in
the mix of deposits, principally from the Company's lower cost NOW
accounts into higher yielding CD products. This change occurred as
the Company started offering market competitive CD rates, generally
for terms of less than 18 months, in conjunction with advertising
campaigns geared toward reemphasizing the Company's presence in its
markets. Although these rates were not the highest in the Company's
market territory, they were higher than those it traditionally
offered. Subsequently, as the Company opened its three new branches,
it continued with these rate offerings as well as paying bonuses to
statement savings rates, on a limited basis, to customers of those new
branches. Also, during 1995 the Company started to market its
products, including deposits, to affinity groups. Under this program,
the Company offers a higher statement savings rate which is tied to
the three month U.S. Treasury rate. The Company believes that the
higher interest rate is economically feasible since service under this
program is principally electronic, and has limited operational and
incremental costs. This program also has the advantage of soliciting
new customers with profiles to match loan products the Company is
marketing.
The actual balance of interest-bearing deposits at March 31, 1996
exceeded the average balance of interest-bearing deposits for the
three months then ended, by $2.1 million, or 0.4%. The average cost
of period ending deposits was 3.92% compared to 3.94% for the three
months ended March 31, 1996. This reflects lower cost core deposits
obtained during the quarter as a result of the Company's marketing
efforts in its new branches, and because depositors preferred the
liquidity of lower cost savings accounts to the lower CD market
interest rates which were being offered during the current quarter.
The average balance of borrowed funds increased $61.4 million, or 152%
from the same quarter a year ago, while the weighted average borrowing
cost decreased 213 basis points from 7.38% to 5.42%. The increase in
borrowing reflects implementation of the Company's strategy to
leverage its excess capital, and this growth, along with the capital
provided through the Company's initial public offering, funded the
increase in assets which has occurred since March, 1995. The decrease
in the weighted average cost of borrowing reflects lower short term
rates during the period since March, 1995, and the effect of
prepayment of higher cost debt in December 1995. The borrowings
outstanding at March 31, 1996 have a weighted average cost of 5.25% at
that date, and all mature before June 30, 1996. It is the Company's
intention to keep its borrowing maturities short term, subject to
prevailing market interest rates, at least into the third calendar
quarter of 1996.
Net Interest Income. For the quarter ended March 31, 1996, net
interest income increased $933 thousand, or 21.9% over the comparable
period last year. The increase is the result of an increase in
interest income larger than the increase in interest expense. During
the current quarter, net interest margin, which is interest income as
a percentage of average interest-earning assets, decreased to 3.44%
from 3.73% during the quarter ended March 31, 1995. This decrease is
the result of lower yield realized during the current quarter and more
borrowings to leverage the Company's capital during this quarter than
the same quarter a year ago. The Company invested approximately $119
million during this quarter, including reinvestment of mortgage
principal and amortization, and maturities of securities, compared to
approximately $14 million during the quarter ended March 31,1995. The
interest rate environment during the current quarter was lower than
that reflected in the investments and loans which matured and paid
down during the current quarter. In addition, net interest income
includes higher borrowing costs for this quarter over that incurred in
the same period last year.
Provision for Loan Losses. The provision for loan losses increased by
$51 thousand to $125 thousand for the three months ended March 31,
1996 from $74 thousand for the same period last year. The provision
for the three months ended March 31, 1996 was determined by management
after review of, among other things, the Company's loan portfolio, the
risks inherent in the Company's lending activities and the economy in
the Company's market areas. Although management believes that both
the provision incurred during the quarter ended March 31, 1996 and the
balance of the allowance for loan losses are adequate, future
additions to the allowance may be necessary based upon changes in
economic condition, or the creditworthiness of borrowers and the value
of collateral underlying loans. As of March 31, 1996,
non-performing loans increased $757 thousand, or 13.5%, to $6.4
million from $5.6 million at December 31, 1995. These non-performing
loans represent 2.86% of total loans outstanding at March 31, 1996
compared to a 2.87% ratio of non-performing loans to total loans at
December 31, 1995. At March 31, 1996, the allowance for loan losses
was $3.3 million, or 52.2% of total non-performing loans, compared to
$3.2 million, or 57.7% of total non-performing loans at December 31,
1995.
Non-Interest Income. Total non-interest income increased $140
thousand to $664 thousand for the three months ended March 31,1996
from $524 thousand for the same period last year. The principal
reasons for this increase were recognition of income from the
collection of unaccrued interest, partially offset by a decrease in
commissions from annuity sales. During 1995, in connection with the
workout of a non-performing loan, the Company received full payment of
the outstanding principal in accord with the terms of a bankruptcy
settlement. Subsequent payments, representing unaccrued interest
totalled $356 thousand during the current quarter. There were no like
amounts received during the same quarter a year ago. Management is
unable to predict whether there will be any future payments under this
plan. In addition, commissions from sales of annuities declined $85
thousand, or 89%, during the current quarter as compared to the same
quarter a year ago because the Company prioritized its resources
toward developing its new branches and marketing its core products
rather than selling annuities.
Non-Interest Expense. Total non-interest expense increased 19.3% or
$.6 million to $3.8 million for the current quarter ended March 31,
1996 from $3.2 million for the same period last year.
Salaries and employee benefits expenses for the three months ended
March 31, 1996, increased $593 thousand, or 39.6% compared to the same
period a year ago. Of this amount, approximately $400 thousand was
related to increased staffing requirements necessary to position the
Company to achieve its marketing and operational objectives, including
increased executive and loan administrative staff, and staffing and
training for the Company's new branches. Other salary and benefits
expenses, incurred for the same reason, include provisions for
additional incentive programs for employees at all levels of the
Company, including $100 thousand associated with the Company's
Employee Stock Ownership Plan established September 29, 1995.
Finally, salary and benefit expenses also reflect normal salary
increases from salary in place in the prior year period.
Occupancy costs increased $123 thousand, or 30.9%, for the current
quarter over the same period last year. The increase was principally
as a result of new lease costs for the three new branches the Company
has opened since the quarter ended March 31, 1995 and the related
amortization of leasehold improvements to these branches, as well as
from branch maintenance required because of frequent snow storms
during this past quarter.
The remaining components of non-interest expense decreased $93
thousand, or 6.9% from $1,340,000 for the three months ended March 31,
1995 to $1,247,000 for the current quarter, with no material change or
trend in any of the individual items.
Income Taxes. The increase in income taxes of $117 thousand, or
20.9%,from the three month period a year ago was a result of the
increase in taxable income from that period.
Liquidity and Capital Resources
The Company's liquidity is a measure of its ability to fund loans and
withdrawals of deposits in a cost effective manner. The Company's
primary financing sources are deposits obtained in its own market
area, advances from the FHLB and recently, securities sold under
repurchase agreements. Other sources of funds include scheduled
amortization and prepayments of loan principal and mortgage-backed
securities, maturities of debt securities, and funds provided by
operations. At March 31, 1996, the Company had total liquid assets
which represented 23.6% of total assets and 33.7% of total deposits.
In addition, at March 31, 1996, the Company also had available to it
$9.8 million under a line of credit with the FHLB, expiring October
30, 1996, and approximately $17.0 million of excess collateral pledged
with the FHLB. The Company also has approximately $235.4 million in
unpledged debt, equity and mortgage-backed securities which could be
used to collateralize additional borrowings. Finally, all of the
Company's securities are available for sale.
At March 31, 1996, capital resources were sufficient to meet
outstanding loan commitments of $50.0 million, a securities purchase
commitment of $19.6 million and commitments on unused lines of credit
of $2.4 million. Certificates of deposit which are scheduled to
mature in one year or less from March 31, 1996 totalled $178.0
million. Management is unable to predict the amount of such deposits
that will renew with the Company. As a result of the Company's
liquidity position, management does not believe the Company's
operations will be materially affected by a failure to renew these
deposits. However, experience indicates that a significant portion of
such deposits should remain with the Company.
During the three months ended March 31, 1996, investment and lending
activities were the principal requirements for funding. Purchases of
mortgage-backed securities exceeded principal repayments and
maturities of debt and equity securities by $50.9 million. Purchase
and originations of loans exceeded principal collections by $27.7
million. The principal sources of funding for these investments were
increases in borrowings, net of repayments, from the FHLB of $69.6
million and an increase in deposits of $6.8 million.
During the three months ended March 31, 1995, investment activities
represented the primary funding need. Purchases of debt and equity
securities exceeded maturities and principal repayments and mortgage-
backed securities by $4.2 million. The principal sources of funding
for these purchases were the excess of loan repayments over loan
originations and cash provided by operations.
At March 31, 1996, the Bank exceeded each of the regulatory capital
requirements applicable to it. The table below presents the Bank's
capital ratios at March 31, 1996 as compared to the minimum OTS
requirements:
Required Capital Actual Capital
---------------- --------------
Excess of
Actual Over
% of % of Regulatory
(dollars in thousands) Amount Assets Amount Assets Requirement
Tangible Capital $ 9,558 1.5% $70,861 11.12% $61,303
Core Capital 25,487 4.0% 70,861 11.12% 45,374
Risk Based Capital 16,025 8.0% 72,559 36.22% 56,534<PAGE>
PART II OTHER INFORMATION
Item 1. Legal Proceedings
There are various claims and lawsuits in which the Bank is
periodically involved incidental to the Bank's business. In
the opinion of management, no material loss is expected from
any such pending claims or lawsuits.
Item 2. Changes in Securities.
Not applicable.
Item 3. Defaults upon Senior Securities.
Not applicable.
Item 4. Submission of Matters to a Note of Security Holders.
None.
Item 5. Other Information.
Not applicable.
Item 6. Exhibits and Report of Form 8-K.
(a) Exhibits.
Number Description
------ -----------
27 Financial Data Schedule
(b) Reports on Form 8-K.
The Registrant filed a current report on Form 8-K dated
January 30, 1996 announcing the Registrant's earnings for
the period ended December 31, 1995.<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 thereunto duly authorized.
STATEWIDE FINANCIAL CORP.
Date: May 10, 1996 By: Bernard F. Lenihan
BERNARD F. LENIHAN
Senior Vice President and Chief
Financial Officer<PAGE>
<TABLE> <S> <C>
<ARTICLE> 9
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> MAR-31-1996
<CASH> 5,247
<INT-BEARING-DEPOSITS> 0
<FED-FUNDS-SOLD> 700
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 385,834
<INVESTMENTS-CARRYING> 0
<INVESTMENTS-MARKET> 0
<LOANS> 226,700
<ALLOWANCE> 3,331
<TOTAL-ASSETS> 634,464
<DEPOSITS> 444,819
<SHORT-TERM> 114,314
<LIABILITIES-OTHER> 4,910
<LONG-TERM> 0
0
0
<COMMON> 0
<OTHER-SE> 70,421
<TOTAL-LIABILITIES-AND-EQUITY> 634,464
<INTEREST-LOAN> 4,258
<INTEREST-INVEST> 6,482
<INTEREST-OTHER> 90
<INTEREST-TOTAL> 10,830
<INTEREST-DEPOSIT> 4,250
<INTEREST-EXPENSE> 5,629
<INTEREST-INCOME-NET> 5,201
<LOAN-LOSSES> 125
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 3,858
<INCOME-PRETAX> 1,882
<INCOME-PRE-EXTRAORDINARY> 1,205
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,205
<EPS-PRIMARY> .25
<EPS-DILUTED> .25
<YIELD-ACTUAL> 3.44
<LOANS-NON> 5,746
<LOANS-PAST> 632
<LOANS-TROUBLED> 925
<LOANS-PROBLEM> 3,261
<ALLOWANCE-OPEN> 3,241
<CHARGE-OFFS> 36
<RECOVERIES> 1
<ALLOWANCE-CLOSE> 3,331
<ALLOWANCE-DOMESTIC> 3,331
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
