Announcement: Staten Island Bancorp Announces Quarter and Year End 2003 Results.Business Editors STATEN ISLAND Staten Island (1990 pop. 378,977), 59 sq mi (160 sq km), SE N.Y., in New York Bay, SW of Manhattan, forming Richmond co. of New York state and the borough of Staten Island of New York City. , N.Y.--(BUSINESS WIRE)--Jan. 29, 2004 Staten Island Bancorp, Inc. (NYSE NYSE See: New York Stock Exchange :SIB sib: see clan. ) (the "Company"), the parent holding company for SI Bank & Trust (the "Bank"), today reported fourth quarter and full year results for 2003. As previously announced, the Company and Independence Community Bank Corp. ("Independence") entered into an Agreement and Plan of Merger, dated as of November November: see month. 24, 2003, pursuant to which the Company will merge See mail merge and concatenate. with and into Independence ("the Merger"). In connection with the Merger, the Company has agreed to sell a substantial portion of the assets and operations of SIB Mortgage Corp., the Bank's mortgage banking subsidiary ("SIB Mortgage"), as part of a plan to exit the mortgage banking business. As a result of these plans, under generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting , the Company must report the Bank's results as "continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the " and the results of the mortgage banking business of SIB Mortgage as "discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. ." Accordingly, the Company reported income from continuing operations of $13.6 million or $0.24 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share for the quarter ended December December: see month. 31, 2003, compared to income from continuing operations of $14.3 million or $0.25 per diluted share for the quarter ended December 31, 2002. For the year ended December 31, 2003, the Company's income from continuing operations was $57.1 million or $1.01 per diluted share compared to $66.1 million or $1.13 per diluted share for the year ended December 31, 2002. The Company reported a net loss from discontinued operations of $60.3 million, or $1.06 per diluted share, for the quarter ended December 31, 2003 compared to net income from discontinued operations of $10.3 million or $0.17 per diluted share for the quarter ended December 31, 2002. For the year, the net loss from discontinued operations was $44.3 million or $0.78 per diluted share for 2003 compared to net income from discontinued operations of $29.6 million or $0.51 per diluted share for 2002. Giving effect to both the Company's income from continuing operations and the income (loss) from discontinued operations, the Company reported a net loss of $46.7 million or $0.82 per diluted share for the quarter ended December 31, 2003 compared to net income of $24.6 million or $0.42 per diluted share for the quarter ended December 31, 2002. For the year, the Company reported net income of $12.8 million or $0.23 per diluted share for 2003 compared to $100.4 million or $1.72 per diluted share for 2002. CONTINUING OPERATIONS Net Interest Income The Company's net interest income for the fourth quarter of 2003 amounted to $42.1 million, a decrease of $1.8 million compared to $43.9 million of net interest income in the fourth quarter of 2002. The continuing low interest rate environment reduced the Company's yields on its loans and investment securities which was partially offset by lower costs paid on deposits and borrowings. The Company's interest income declined by $9.8 million in the fourth quarter of 2003 compared to the fourth quarter of 2002. This was due primarily to a 73 basis point reduction in the average yield earned on loans, which was partially offset by a $156.6 million or 3.3% increase in the average balance in the loan portfolio in the fourth quarter of 2003 compared to the fourth quarter of 2002. The average yield earned on securities declined by 221 basis points in the fourth quarter of 2003, compared to the fourth quarter of 2002, which more than offset a $316.1 million or 29.3% increase in the average balance of securities. The reduction in the average yields earned by the Company on its loans and securities primarily reflects the continuing low interest rate environment. Included in the Company's interest income was interest earned on warehouse lines of credit from the Bank to SIB Mortgage which had an average balance of $ 1.4 billion and an average yield of 3.89% for the fourth quarter of 2003. The Company anticipates that, as the balance on such warehouse lines are reduced as a function of the winding down of SIB Mortgage's operations, these funds will be available for reinvestment Reinvestment Using dividends, interest and capital gains earned in an investment or mutual fund to purchase additional shares or units, rather than receiving the distributions in cash. 1. In terms of stocks, it is the reinvestment of dividends to purchase additional shares. in higher yielding assets. The Company's interest expense declined $8.1 million in the fourth quarter of 2003 compared to the fourth quarter of 2002. This was primarily due to a 78 basis point decline in the overall cost of funds Cost of Funds The interest rate paid on an outstanding loan. Notes: Money isn't free! Cost of funds is the cost of borrowing money. See also: Interest Rate Cost of funds Interest rate associated with borrowing money. from 3.30% in the fourth quarter of 2002 to 2.52% in the fourth quarter of 2003. The impact of this decline in the cost of funds was partially offset by the increase in the average balance of deposits, which increased $366.3 million or 12.49%. For the year, net interest income decreased by $11.2 million to $164.0 million compared to $175.2 million for 2002. A decrease of $40.0 million in interest income was partially offset by $28.8 million reduction in interest expense. Again, lower market rates of interest reduced the average yields on the Company's loans and securities and the average cost of deposits and borrowings. Provision for Loan Losses The Company's provision for loan losses decreased by $554,000 from $2.0 million in the fourth quarter of 2002 to $1.4 million during the fourth quarter of 2003. For the year the provision increased $2.8 million from $4.1 million in 2002 to $7.0 million in 2003. Net charge-offs increased $3.5 million during 2003 compared to 2002 of which $2.6 million related to the Bank's mobile home portfolio. Other Income Total other income increased $2.6 million from $3.8 million during the fourth quarter of 2002 to $6.4 million during the fourth quarter of 2003. A $2.9 million increase in service and fee income, $2.6 million of which relates to the Bank's guaranty As a verb, to agree to be responsible for the payment of another's debt or the performance of another's duty, liability, or obligation if that person does not perform as he or she is legally obligated to do; to assume the responsibility of a guarantor; to warrant. on certain lines of credit of SIB Mortgage, a $2.1 million increase in the unrealized gain Unrealized Gain A profit that results from holding on to an asset rather than cashing it in and using the funds. Notes: Let's say you own a stock that has doubled, but you haven't sold it yet. This is said to be an unrealized gain. on derivative derivative: see calculus. derivative In mathematics, a fundamental concept of differential calculus representing the instantaneous rate of change of a function. transactions and a $2.8 million increase in gains on securities transactions were partially offset by a $5.0 million increase in the loss on loan sales in the fourth quarter of 2003. For the year, total other income increased $6.3 million from $26.4 million for 2002 to $32.7 million for 2003. This was primarily the result of a $13.3 million increase in service and fee income primarily related to $11.9 million in fees earned by the Bank as a result of its guarantee of certain third party lines of credit for SIB Mortgage and a $1.0 million increase in gains on securities transactions, which were partially offset by $4.3 million loss on loan sales in 2003 compared to a $700,000 gain in 2002, as well as a $2.9 million reduction in other income. The reduction in other income was due to the receipt in the first quarter of 2002 of a $3.0 million one time liquidating dividend Liquidating Dividend Payment by a firm to its owners from capital rather than from earnings. Notes: This isn't really a good thing. It would be preferable to have dividends come from earnings. from the Company's former data processing data processing or information processing, operations (e.g., handling, merging, sorting, and computing) performed upon data in accordance with strictly defined procedures, such as recording and summarizing the financial transactions of a provider. Other Expense Total other expenses increased $1.9 million from $21.2 million to $23.1 million from the fourth quarter of 2002 compared to the fourth quarter of 2003. Reductions in personnel and marketing expense of $292,000 and $207,000, respectively, were more than offset by a $1.7 million increase in professional fees relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the Merger with Independence and a $420,000 increase in data processing fees. For the year, other expenses increased $3.3 million to $89.8 million for 2003 compared to $86.5 million for 2002. Increases in professional fees of $5.0 million, occupancy Gaining or having physical possession of real property subject to, or in the absence of, legal right or title. In a fire insurance policy, for example, the term occupancy and equipment expenses of $1.9 million, as well as, data processing fees and other expenses of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $1.0 million each were partially offset by a $5.3 million reduction in personnel expense. The increase in professional fees includes merger related fees and expenses of $1.7 million. The reduction in personnel expense reflects a $6.2 million reduction in stock option expense due to the discontinuance Cessation; ending; giving up. The discontinuance of a lawsuit, also known as a dismissal or a non-suit, is the voluntary or involuntary termination of an action. DISCONTINUANCE, pleading. A chasm or interruption in the pleading. 2. in September September: see month. 2002 of variable plan accounting on the Company's stock option plan, an increase in the deferral deferral - Waiting for quiet on the Ethernet. of staff expenses relating to loan originations The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. , as well as reductions in bonus and incentive payments. These personnel expense reductions were partially offset by increases in staff expenses relating to branch expansion and other operational staffing increases plus normal pay increases. DISCONTINUED OPERATIONS As previously indicated the Company reported net losses from discontinued operations of $60.3 million and $44.3 million, respectively, for the quarter and year ended December 31, 2003. In the prior year, net income from discontinued operations was $10.3 million and $29.6 million, respectively, for the quarter and year ended December 31, 2002. The loss from discontinued operations in the 2003 quarter and year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. results primarily reflect costs and fees associated with the arrangements to transfer a substantial portion of the operations of SIB Mortgage, recognition of loan origination costs and expenses due to lower origination Origination The process through which a mortgage lender creates a mortgage secured by some amount of the mortgagor's real property. Notes: Also known as loan origination, everyone must go through the origination process when securing a mortgage for a piece of real volume and increased losses on loan sales and derivative transactions. The Company anticipates that a substantial portion of the operations of the SIB Mortgage will be sold to Lehman Brothers Lehman Brothers Holdings Inc. (NYSE: LEH), founded in 1850, is a diversified, global financial services firm. It is a participant in investment banking, equity and fixed income sales, research and trading, investment management, private equity, and private banking. (or an affiliate Affiliate Relationship between two companies when one company owns substantial interest, but less than a majority of the voting stock of another company, or when two companies are both subsidiaries of a third company. See: Subsidiaries, parent company. thereof) by the end of February February: see month. 2004 and that the remaining operations of SIB Mortgage will be sold or discontinued dis·con·tin·ue v. dis·con·tin·ued, dis·con·tin·u·ing, dis·con·tin·ues v.tr. 1. To stop doing or providing (something); end or abandon: prior to the Merger. FINANCIAL CONDITION Total assets were $7.5 billion at December 31, 2003, an increase of $551.1 million or 8.0% when compared to total assets of $6.9 billion at December 31, 2002. Retail deposit growth was a significant factor in generating asset growth and reflects deposit growth in the Bank's primary market of Staten Island, as well as the expansion efforts in New Jersey and Brooklyn Brooklyn (br  k`lĭn), borough of New York City (1990 pop. 2,300,664), 71 sq mi (184 sq km), coextensive with Kings co., SE N.Y. . Core deposits, which consist of savings, NOW, DDA DDA Disability Discrimination Act (1995, UK)DDA Downtown Development Authority DDA Doha Development Agenda DDA Delhi Development Authority DDA Department for Disarmament Affairs DDA Demand Deposit Account DDA Domain Defined Attribute and money market accounts increased $273.5 million or 11.6% for the current year. The Company's total stockholders' equity Stockholders' Equity The portion of the balance sheet that includes capital received from investors in exchange for stock (paid-in capital), donated capital, and retained earnings. This is equal to total assets minus liabilities, preferred stock and intangible assets. was $605.0 million and its tangible Possessing a physical form that can be touched or felt. Tangible refers to that which can be seen, weighed, measured, or apprehended by the senses. A tangible object is something that is real and substantial. An automobile is an example of tangible Personal Property. equity to assets ratio was 7.30%, at December 31, 2003. Tangible book value per share was $9.13 at December 31, 2003. Staten Island Bancorp, Inc. is the holding company for SI Bank & Trust. SI Bank & Trust was chartered in 1864 and currently operates 17 full service branches and three limited service branches on Staten Island, New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , three full service branches in Brooklyn, New York and 15 full service branches in New Jersey. On September 30, 2003, Staten Island Bancorp had $7.5 billion in total assets and $605.0 million of stockholders' equity. For additional information on our Company including the Company's filings with the Securities and Exchange Commission, please visit our website at www.sibk.com. Statements contained in this release which are not historical facts are forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. as that term is defined in the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Such forward-looking statements are subject to risks and uncertainties which could cause actual results to differ materially from those currently anticipated due to a number of factors. Included in such forward-looking statements are statements regarding the proposed merger of the Company and Independence Community Bank Corp. ("Independence"). Words such as "expect," "feel," "believe," "will," "may," "anticipate," "plan," "estimate," "intend," "should," and similar expressions are intended to identify forward-looking statements. These statements include, but are not limited to, financial projections and estimates and their underlying assumptions; statements regarding plans, objectives and expectations with respect to future operations, products and services; and statements regarding future performance. Such statements are subject to certain risks and uncertainties, many of which are difficult to predict and generally beyond the control of the Company and Independence, that could cause actual results to differ materially from those expressed in, or implied Inferred from circumstances; known indirectly. In its legal application, the term implied is used in contrast with express, where the intention regarding the subject matter is explicitly and directly indicated. or projected by, the forward-looking for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. information and statements. The following factors, among others, could cause actual results to differ materially from the anticipated results or other expectations expressed in the forward-looking statements: (1) the businesses of the Company and Independence may not be combined successfully, or such combination may take longer to accomplish than expected; (2) the growth opportunities and cost savings from the merger of the Company and Independence may not be fully realized or may take longer to realize than expected; (3) operating costs operating costs npl → gastos mpl operacionales and business disruption disruption /dis·rup·tion/ (dis-rup´shun) a morphologic defect resulting from the extrinsic breakdown of, or interference with, a developmental process. following the completion of the merger, including adverse effects on relationships with employees, may be greater than expected; (4) governmental approvals of the merger may not be obtained, or adverse regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. conditions may be imposed in connection with governmental approvals of the merger; (5) the stockholders of either the Company or Independence may fail to approve the merger; (6) competitive factors which could affect net interest income and non-interest income, general economic conditions which could affect the volume of loan originations, deposit flows and real estate values; (7) the levels of non-interest income and the amount of loan losses as well as other factors discussed in the documents filed by the Company and Independence with the Securities and Exchange Commission (the "SEC") from time to time. Neither the Company nor Independence undertakes any obligation to update these forward-looking statements to reflect events or circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or that occur after the date on which such statements were made. This filing may be deemed to be solicitation solicitation In criminal law, the act of asking, inducing, or directing someone to commit a crime. The person soliciting another becomes an accomplice to the crime. The term also refers to the act of obtaining bribes, as well as to the crime of a prostitute who offers sexual material in respect of the proposed merger of the Company and Independence. In connection with the proposed transaction, a registration statement on Form S-4 has been filed with the SEC. STOCKHOLDERS OF THE COMPANY AND STOCKHOLDERS OF INDEPENDENCE ARE ENCOURAGED TO READ THE REGISTRATION STATEMENT AND ANY OTHER RELEVANT DOCUMENTS FILED WITH THE SEC, INCLUDING THE JOINT PROXY See proxy server. (networking) proxy - A process that accepts requests for some service and passes them on to the real server. A proxy may run on dedicated hardware or may be purely software. STATEMENT/PROSPECTUS THAT IS A PART OF THE REGISTRATION STATEMENT, BECAUSE THEY CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED MERGER. The final joint proxy statement/prospectus will be mailed to stockholders of the Company and stockholders of Independence. Investors and security holders will be able to obtain the documents free of charge at the SEC's website, www.sec.gov See .gov and GovNet. (networking) gov - The top-level domain for US government bodies. , from Independence Community Bank Corp., 195 Montague The name Montague can refer to the following: People Surnames
The process by which the corporation communicates with its investors. or from Staten Island Bancorp, Inc., 1535 Richmond Avenue Richmond Avenue is an integral north-south thoroughfare on Staten Island. Measuring approximately 7.0 miles (11.27 kilometres), the road runs from the community of Graniteville to the south shore community of Eltingville. , Staten Island, New York 10314, Attention: Investor Relations. The Company and its directors and executive officers and other members of management and employees may be deemed to participate in the solicitation of proxies in respect of the proposed transaction. Information regarding the Company's directors and executive officers is available in the Company's proxy statement Proxy Statement A document containing the information that a company is required by the SEC to provide to shareholders so they can make informed decisions about matters that will be brought up at an annual stockholder meeting. for its 2003 annual meeting of stockholders, which was filed with the SEC on April 7, 2003. Additional information regarding the interests of such potential participants will be included in the joint proxy statement/prospectus and the other relevant documents filed with the SEC when they become available.
CONSOLIDATED STATEMENTS OF CONDITION
December December Increase
31, 2003 31, 2002 (Decrease)
----------- ----------- -----------
(000's omitted)
ASSETS:
Cash and due from banks $ 100,699 $ 137,085 $ (36,386)
Federal funds sold 137,000 237,000 (100,000)
Securities available for sale 2,012,520 911,432 1,101,088
Federal Home Loan Bank of NY
capital stock 118,400 112,150 6,250
Loans, net of allowance for loan
losses of $25,441 in 2003 and
$22,773 in 2002 3,525,918 3,422,492 103,426
Loans held for sale 1,200,031 1,729,890 (529,859)
Accrued interest receivable 26,150 23,976 2,174
Bank premises and equipment, net 51,784 47,545 4,239
Intangible assets, net 54,638 57,881 (3,243)
Other assets 259,016 255,644 3,372
----------- ----------- -----------
Total assets $7,486,156 $6,935,095 $ 551,061
=========== =========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES:
Due Depositors-
Savings $1,127,108 $1,045,767 $ 81,341
Certificates of deposit 1,215,089 1,105,370 109,719
Money market 764,537 639,037 125,500
NOW accounts 158,825 134,450 24,375
Demand deposits 581,789 539,510 42,279
----------- ----------- -----------
Total deposits 3,847,348 3,464,134 383,214
Borrowed funds 2,950,927 2,756,927 194,000
Advances from borrowers for
taxes and insurance 21,931 23,537 (1,606)
Accrued interest and other
liabilities 60,985 76,229 (15,244)
----------- ----------- -----------
Total liabilities 6,881,191 6,320,827 560,364
----------- ----------- -----------
STOCKHOLDERS' EQUITY:
Common stock, par value $.01 per
share, 100,000,000 shares
authorized, 90,260,624 issued
and 60,290,796 outstanding at
December 31, 2003 and 90,260,624
issued and 60,269,397
outstanding at December 31, 2002 903 903 -
Additional paid-in-capital 600,592 586,405 14,187
Retained earnings 374,987 391,739 (16,752)
Unallocated common stock held by
ESOP (24,722) (27,468) 2,746
Unearned common stock held by
RRP (3,854) (8,894) 5,040
Treasury stock (29,969,828 shares
at December 31, 2003 and
29,991,227 at December 31,
2002), at cost (351,222) (339,982) (11,240)
----------- ----------- -----------
596,684 602,703 (6,019)
Accumulated other comprehensive
income, net of taxes 8,281 11,565 (3,284)
----------- ----------- -----------
Total stockholders' equity 604,965 614,268 (9,303)
----------- ----------- -----------
Total liabilities and
stockholders' equity $7,486,156 $6,935,095 $ 551,061
=========== =========== ===========
See accompanying notes to consolidated financial statements.
CONSOLIDATED STATEMENTS OF INCOME
For the Three Months Ended
December 31,
-----------------------------------
Increase
2003 2002 (Decrease)
-----------------------------------
(000's omitted, except per
share and share data)
Continuing Operations:
Interest Income:
Loans $ 65,711 $ 72,442 $ (6,731)
Securities available for sale 12,204 15,457 (3,253)
Federal funds sold 582 418 164
----------- ----------- -----------
Total interest income 78,497 88,317 (9,820)
----------- ----------- -----------
Interest Expense:
Savings and escrow accounts 1,594 3,751 (2,157)
Certificates of deposits 7,418 9,014 (1,596)
Money market and NOW accounts 3,649 4,515 (866)
Borrowed funds 23,711 27,156 (3,445)
----------- ----------- -----------
Total interest expense 36,372 44,436 (8,064)
----------- ----------- -----------
Net interest income 42,125 43,881 (1,756)
Provision for Loan Losses 1,446 2,000 (554)
----------- ----------- -----------
Net interest income after
provision for loan losses 40,679 41,881 (1,202)
Other Income (Loss):
Service and fee income 6,818 3,955 2,863
Net gains (losses) on loan sales (4,687) 330 (5,017)
Unrealized gain (loss) on
derivative transactions 2,091 - 2,091
Loan fees 44 122 (78)
Other Income 1,921 1,928 (7)
Securities transaction gain
(loss) 252 (2,506) 2,758
----------- ----------- -----------
6,439 3,829 2,610
Other Expenses:
Personnel 11,773 12,065 (292)
Occupancy and equipment 3,187 3,040 147
Amortization of intangible assets 121 120 1
Data processing 2,094 1,674 420
Marketing 302 509 (207)
Professional fees 2,957 1,245 1,712
Other 2,620 2,548 72
----------- ----------- -----------
Total other expenses 23,054 21,201 1,853
----------- ----------- -----------
Income before provision for
income taxes 24,064 24,509 (445)
Provision for Income Taxes 10,439 10,245 194
----------- ----------- -----------
Income from continuing
operations 13,625 14,264 (639)
Discontinued Operations:
Income (loss) before provision
(benefit) for income taxes (103,007) 17,816 (120,823)
Provision (benefit) for income
taxes (42,677) 7,518 (50,195)
----------- ----------- -----------
Income (loss) from discontinued
operations (60,330) 10,298 (70,628)
Income (loss) before cumulative
effect of change in accounting
principle (46,705) 24,562 (71,267)
Cumulative effect of change in
accounting for FAS #133 - - -
----------- ----------- -----------
Net income (loss) $ (46,705) $ 24,562 $ (71,267)
=========== =========== ===========
Earnings per share - Basic
Income from continuing
operations $ 0.26 $ 0.26
Income (loss) from discontinued
operations (1.11) 0.19
Cumulative effect of change in
accounting principle - -
----------- -----------
Net income (loss) $ (0.85) $ 0.45
=========== ===========
Earnings per share - Diluted
Income from continuing
operations $ 0.24 $ 0.25
Income (loss) from discontinued
operations (1.06) 0.17
Cumulative effect of change in
accounting principle - -
----------- -----------
Net income (loss) $ (0.82) $ 0.42
=========== ===========
Dividends declared per share $ 0.14 $ 0.13
=========== ===========
CONSOLIDATED STATEMENTS OF INCOME
For the Year Ended
December 31,
-----------------------------------
Increase
2003 2002 (Decrease)
-----------------------------------
(000's omitted, except per
share and share data)
Continuing Operations:
Interest Income:
Loans $ 268,496 $ 273,014 $ (4,518)
Securities available for sale 48,179 84,059 (35,880)
Federal funds sold 1,841 1,438 403
----------- ----------- -----------
Total interest income 318,516 358,511 (39,995)
----------- ----------- -----------
Interest Expense:
Savings and escrow accounts 10,255 17,437 (7,182)
Certificates of deposits 30,424 39,008 (8,584)
Money market and NOW accounts 14,938 16,280 (1,342)
Borrowed funds 98,902 110,555 (11,653)
----------- ----------- -----------
Total interest expense 154,519 183,280 (28,761)
----------- ----------- -----------
Net interest income 163,997 175,231 (11,234)
Provision for Loan Losses 6,968 4,130 2,838
----------- ----------- -----------
Net interest income after
provision for loan losses 157,029 171,101 (14,072)
Other Income (Loss):
Service and fee income 28,105 14,774 13,331
Net gains (losses) on loan sales (4,270) 677 (4,947)
Unrealized gain (loss) on
derivative transactions 358 - 358
Loan fees 200 751 (551)
Other Income 7,687 10,554 (2,867)
Securities transaction gain (loss) 611 (395) 1,006
----------- ----------- -----------
32,691 26,361 6,330
Other Expenses:
Personnel 47,764 53,088 (5,324)
Occupancy and equipment 12,240 10,295 1,945
Amortization of intangible assets 483 483 -
Data processing 7,637 6,682 955
Marketing 2,371 2,654 (283)
Professional fees 7,994 3,001 4,993
Other 11,323 10,269 1,054
----------- ----------- -----------
Total other expenses 89,812 86,472 3,340
----------- ----------- -----------
Income before provision for
income taxes 99,908 110,990 (11,082)
Provision for Income Taxes 42,791 44,904 (2,113)
----------- ----------- -----------
Income from continuing
operations 57,117 66,086 (8,969)
Discontinued Operations:
Income (loss) before provision
(benefit) for income taxes (75,339) 51,433 (126,772)
Provision (benefit) for income
taxes (31,051) 21,872 (52,923)
----------- ----------- -----------
Income (loss) from discontinued
operations (44,288) 29,561 (73,849)
12,829 95,647 (82,818)
Cumulative effect of change in
accounting for FAS #133 - 4,731 (4,731)
----------- ----------- -----------
Net income (loss) $ 12,829 $ 100,378 $ (87,549)
=========== =========== ===========
Earnings per share - Basic
Income from continuing
operations $ 1.05 $ 1.18
Income (loss) from discontinued
operations (0.81) 0.53
Cumulative effect of change in
accounting principle - 0.09
----------- -----------
Net income (loss) $ 0.24 $ 1.80
=========== ===========
Earnings per share - Diluted
Income from continuing
operations $ 1.01 $ 1.13
Income (loss) from discontinued
operations (0.78) 0.51
Cumulative effect of change in
accounting principle - 0.08
----------- -----------
Net income (loss) $ 0.23 $ 1.72
=========== ===========
Dividends declared per share $ 0.54 $ 0.46
=========== ===========
LOAN PORTFOLIO COMPOSITION - The following table sets forth the
composition of the Company's loans held for investment portfolio at
the dates indicated.
December 31, December 31, Increase
2003 2002 (Decrease)
-----------------------------------
(000's omitted)
(unaudited)
Mortgage loans: (1)
Single-family residential $2,660,051 $2,671,041 $ (10,990)
Multi-family residential 71,384 56,545 14,839
Commercial real estate 508,466 418,708 89,758
Construction and land 170,259 153,144 17,115
Home equity 21,986 19,032 2,954
----------- ----------- -----------
Total mortgage loans 3,432,146 3,318,470 113,676
Other loans:
Student loans 151 228 (77)
Passbook loans 8,822 8,692 130
Commercial business loans 58,975 62,777 (3,802)
Other consumer loans 29,338 37,362 (8,024)
----------- ----------- -----------
Total other loans 97,286 109,059 (11,773)
----------- ----------- -----------
Total loans receivable 3,529,432 3,427,529 101,903
Less:
Premium (Discount) on loans
purchased 3,226 3,941 (715)
Allowance for loan losses (25,441) (22,773) (2,668)
Deferred loan costs 18,701 13,795 4,906
----------- ----------- -----------
Loans receivable, net $3,525,918 $3,422,492 $ 103,426
=========== =========== ===========
(1) Mortgage loans held for sale at December 31, 2003 and December 31,
2002, of $1.2 billion and $1.7 billion, respectively, are not
included in this table.
LOANS PAST DUE 90 DAYS OR MORE STILL ACCRUING AND NON-ACCRUING
ASSETS. The following tables set forth information with respect to
non-accruing loans, other real estate owned ("OREO") and repossessed
assets and loans past due 90 days or more and still accruing.
December December
31, 2003 31, 2002
----------- -----------
(000's omitted)
(unaudited)
Non-Accruing Loans
Mortgage loans:
Single-family residential $ 24,034 $ 11,942
Multi-family residential 248 -
Commercial real estate 4,385 2,687
Construction and land 1,598 1,094
Home equity - -
Other loans:
Commercial business loans 778 797
Other consumer loans 284 837
----------- -----------
Total non-accrual loans (1) 31,327 17,357
Other real estate owned and repossessed
assets, net 2,613 9,681
----------- -----------
Total non-accruing loan assets 33,940 27,038
Loans past due 90 days or more and still
accruing 3,766 5,684
Non-accruing loans,OREO and repossessed
assets and loans past due 90 days or more ----------- -----------
and still accruing $ 37,706 $ 32,722
=========== ===========
(1) Included in non-accrual loans are non-accrual loans in the
held for sale portfolio at SIB Mortgage of $8.4 million and
$0.9 million at December 31, 2003 and December 31, 2002,
respectively. The Company maintains a representation and
warranty reserve to provide for losses recognized on the sale
of these loans. The balance in the representation and warranty
reserve at December 31, 2003 and December 31, 2002 was $5.1
million and $3.5 million, respectively.
Non-accruing loans, OREO and repossessed
assets to total (a)HFI & (b)HFS loans 0.72% 0.53%
Non-accruing loans, OREO and repossessed
assets to total assets 0.45% 0.39%
Non-accruing loans to total (a)HFI & (b)HFS
loans 0.66% 0.34%
Non-accruing loans to total assets 0.42% 0.25%
(a) Held for Investment
(b) Held for Sale
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