Announcement: Staten Island Bancorp Inc. Reports First Quarter 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)--April 16, 2003 Staten Island Bancorp, Inc. (NYSE NYSE See: New York Stock Exchange : SIB sib: see clan. ), (the "Company"), reported today that net income for the quarter ended March 31, 2003 was $25.4 million or $0.45 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. This compares to net income of $10.0 million or $0.16 per diluted share as restated for the quarter ended March 31, 2002. Commenting on the results, Harry P. Doherty
Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. basis. On April 14th, we opened our third branch in 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. , New York New York, state, United StatesNew 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 and we look forward to opening a fourth Brooklyn branch office later this year. We also plan to open an additional branch in Edison, New Jersey Edison Township (usually known as Edison) is a township in Middlesex County, New Jersey, United States. As of the United States 2000 Census, the township had a total population of 97,687, making it at the time the fifth largest municipality in New Jersey. As of the U.S. this year, increasing the number of our New Jersey locations to 16 offices. We are also pleased to note the continuing record volume in the quarter for our mortgage banking company, SIB Mortgage Corp. Application levels remain strong and we anticipate loan sales of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $4.0 billion in the second quarter." Financial Highlights: -- Net interest income increased $5.9 million or 12.4% to $53.8 million for the first quarter of 2003 compared to $47.9 million for the first quarter of 2002. The improvement in net interest income on a comparative quarter basis continued to be driven by the lower interest rate environment, growth in the Bank's core deposit base and growth of the earning asset Earning asset An asset that generates income, e.g., income from rental property. base. Average interest earning assets Earning Assets Any income-earning asset owned by a company. Notes: These assets are generally interest-bearing accounts, bonds, and securities available for sale. See also: Asset, Asset Valuation, Earnings, Net Interest Margin for the quarter ended March 31, 2003 were $6.5 billion compared to $5.7 billion for the quarter ended March 31, 2002, representing an increase of $794.3 million or 14.0%. On a linked quarter comparison basis, the interest rate spread and net interest margins decreased to 3.03% and 3.37%, respectively, for the current quarter compared to 3.15% and 3.47%, respectively, for the quarter ended December December: see month. 31, 2002. However, excluding an annual capital gain dividend from a mutual fund investment of $696 thousand received in the fourth quarter of 2002, the net spread and margin for the fourth quarter would have been 3.11% and 3.43%, respectively. -- During the first quarter of 2003, the volume of loans sold by the Company's mortgage banking subsidiary, SIB Mortgage Corp., remained strong and amounted to $3.7 billion compared to $3.6 billion in the fourth quarter of 2002 and $1.5 billion in the first quarter of 2002. The Company's net gain on loan sales amounted to $87.8 million for the quarter ended March 31, 2003 compared to $78.9 million for the quarter ended December 31, 2002. The Company's net realized gross margins on loans sold decreased slightly to 2.30% for the first quarter of 2003 compared to 2.33% for the fourth quarter of 2002. -- The overall interest rate environment continues to remain favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. to the Company's mortgage banking segment. SIB Mortgage continued to experience record loan application volume of $6.8 billion for the quarter ended March 31, 2003 compared to $6.2 billion for the quarter ended December 31, 2002. Based upon current application levels, it is anticipated that loan sales will be approximately $4.0 billion in the second quarter of 2003. The Company reported 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 of $4.4 million in the first quarter of 2003 due to an increase in the fair market value of locked loan commitments, net of forward sales forward sales npl → ventas fpl a término commitments, of $2.5 million at SIB Mortgage and $1.8 million at the Bank. For the fourth quarter of 2002, the Company reported an unrealized net loss of $426,000 on derivative transactions. The change in unrealized gain/loss on derivative transactions was primarily due to an increase in the amount of locked loan commitments held as of the end of the respective quarters as well as a decline in market rates of interest at the respective measurement dates. While loan origination 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. volume at SIB Mortgage continues to be positively impacted by the current low interest rate environment, volume at SIB Mortgage in the future, particularly with respect to mortgage loan re-financings (which currently constitute approximately 71% of SIB Mortgage originations), as well as the unrealized gain/loss on the SIB Mortgage's derivative instruments Derivative instruments Contracts such as options and futures whose price is derived from the price of an underlying financial asset. , may be adversely affected by increases in interest rates. The mortgage company continues to look for market expansion opportunities and to review its current operations and product mix to maintain a profitable level of originations in all interest rate environments. -- Deposit growth remained strong in the first quarter of 2003. Total deposits increased $98.6 million or 2.8% (representing 11.4% on an annualized basis) during the three months ended March 31, 2003. 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 $114.l million or 4.8% (19.2% on an annualized basis) in the first quarter and now represent 69.4% of total deposits at March 31, 2003. The increase in the retail deposit base continues to be driven by our continuing expansion while maintaining our leading market share in Staten Island. The expansion of the Bank's retail deposit base, which has increased the volume of fee-related transactions, also contributed to a $678 thousand or 21.0% increase in service and fee income for the quarter ended March 31, 2003 compared to the quarter ended March 31, 2002. -- The Company's return on average equity increased to 16.53% for the quarter ended March 31, 2003 compared to 16.00% for the quarter ended December 31, 2002. The Company's 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. book value per share increased to $9.50 at March 31, 2003 compared to $9.23 at December 31, 2002. -- The Company continued to manage its capital position through the use of stock repurchases Stock repurchase A firm's repurchase of outstanding shares of its common stock. . During the first quarter of 2003, as part of its previously announced ninth share repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. program, the Company repurchased 655,100 shares at an average price of $15.83 per share. There are approximately 1.7 million shares remaining to be purchased in the current program. -- Total other expenses for the first quarter of 2003 were $119.3 million compared to $106.1 million for the quarter ended December 31, 2002. On a linked quarter basis, total other expenses for the community-banking segment were $22.7 million for the first quarter of 2003, compared to $21.2 million for the fourth quarter of 2002. The increase of $1.5 million was due primarily to an increase in professional fees, consulting fees, advertising costs and 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 costs. Also, on a linked quarter basis, total other expenses for the mortgage-banking segment were $96.6 million (net of inter-company eliminations) for the current quarter compared to $84.9 million for the previous quarter. The increase of $11.7 million was primarily due to an $8.2 million increase in commission expense, a $1.4 million increase in personnel expense, and a $1.5 million increase in other expense. The increases in commission and personnel expense reflect the increased loan origination volumes at SIB Mortgage. The increase in other expenses was primarily the result of $1.3 million in write-downs of the carrying value Carrying Value Also know as "book value," it is a company's total assets minus intangible assets and liabilities, such as debt. Notes: This is different than market value, as it can be higher or lower depending on the circumstances. of certain other real estate owned Real Estate Owned Property owned by a lender - usually a bank - after an unsuccessful sale at a foreclosure auction. This is common because most of the properties up for sale at these auctions are worth less than the total amount owed to the bank: the minimum bid in most . Asset Quality Overall asset quality continued to be strong at March 31, 2003 as non-accruing assets totaled $27.1 million, representing minimal change compared to total non-accrual assets of $27.0 million at December 31, 2002. Non-accruing assets at March 31, 2003 consisted of $18.7 million in non-accruing loans and $8.4 million of other real estate owned ("OREO"). This compares to $17.3 million in non-accruing loans and $9.7 million of OREO at December 31, 2002. Non-accruing loans at March 31, 2003 consisted of $15.8 million in single-family sin·gle-fam·i·ly adj. Relating to or being a dwelling designed for one family only: a single-family home; single-family occupancy. residential mortgage loans, $0.8 million of commercial real estate loans, $0.3 million of construction and land loans and $1.8 million of other loans. Net loan charge-offs were $766 thousand in the current quarter. The Company has a contract in place to sell one of its OREO properties with a carrying value of $4.2 million at no additional loss. This sale is currently scheduled for the second quarter of 2003. Based upon its quarterly review, management deemed it appropriate to make an $850 thousand provision for loan losses in the first quarter of 2003. The allowance for loan losses was $22.9 million or 122.3% of total non-accruing loans at March 31, 2003, compared to $22.8 million or 131.2% of non-accruing loans at December 31, 2002 and $21.2 million or 77.7% of non-accruing loans at March 31, 2002. "Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " Statement under 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: Statements in this press release relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc plans, strategies, economic performance and trends, projections of results of specific activities or investments and other statements that are not descriptions of historical facts may be 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. within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. 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 is inherently subject to risks and uncertainties, and actual results could differ materially from those currently anticipated due to a number of factors, which include, but are not limited to, factors discussed in the Company's Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. and in other documents filed by the Company with the Securities and Exchange Commission from time to time. Forward-looking statements may be identified by terms such are "may," "will," "should," "could," "expects," "plans," "intends," "anticipates," "believes," "estimates," "predicts", "forecasts," "potential" or "continue" or similar terms or the negative of these terms. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. The Company has no obligation to update these forward-looking statements. 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, three full service branches in Brooklyn, New York and 15 full service branches in New Jersey. SI Bank & Trust also operates SIB Mortgage Corp., a wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. of SI Bank & Trust, which conducts business under the name of Ivy Mortgage in 42 states. On March 31, 2003, Staten Island Bancorp had $6.9 billion in total assets and $625.0 million of 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. .
CONSOLIDATED STATEMENTS OF INCOME (unaudited)
For the Three Months Ended March 31,
------------------------------------------------
2002 Increase
2003 (Restated) (Decrease)
------------------------------------------------
(000's omitted, except per share and share data)
Interest Income:
Loans $83,854 $69,883 $13,971
Securities available for
sale 12,865 23,825 (10,960)
Federal funds sold 553 509 44
----------- ----------- -----------
Total interest income 97,272 94,217 3,055
----------- ----------- -----------
Interest Expense:
Savings and escrow accounts 3,131 4,483 (1,352)
Certificates of deposit 7,858 10,346 (2,488)
Money market and NOW
accounts 4,003 3,357 646
Borrowed funds 28,473 28,140 333
----------- ----------- -----------
Total interest expense 43,465 46,326 (2,861)
----------- ----------- -----------
Net interest income 53,807 47,891 5,916
Provision for Loan Losses 850 1,500 (650)
----------- ----------- -----------
Net interest income after
provision for loan losses 52,957 46,391 6,566
Other Income (Loss):
Service and fee income 3,900 3,222 678
Net gains on loan sales 87,838 37,130 50,708
Unrealized gain(loss) on
derivative transactions 4,357 (860) 5,217
Loan fees 11,460 6,780 4,680
Other Income 1,899 1,830 69
Securities transactions 315 167 148
----------- ----------- -----------
109,769 48,269 61,500
Other Expenses:
Personnel 26,067 39,501 (13,434)
Commissions 62,003 20,639 41,364
Occupancy and equipment 5,180 3,621 1,559
Amortization of intangible assets 145 145 -
Data processing 1,830 1,706 124
Marketing 1,740 1,110 630
Professional fees 5,274 2,660 2,614
Other 17,047 8,398 8,649
----------- ----------- -----------
Total other expenses 119,286 77,780 41,506
----------- ----------- -----------
Income before provision for income
taxes 43,440 16,880 26,560
Provision for Income Taxes 17,997 6,856 11,141
----------- ----------- -----------
Net Income $25,443 $10,024 $15,419
=========== =========== ===========
Earnings Per Share:
Basic $0.46 $0.18
Fully Diluted $0.45 $0.16
Dividends Declared Per Share $0.13 $0.11
Weighted Average: Fully Diluted
Common Shares 90,260,624 90,260,624
Less: Unallocated ESOP/RRP Shares 4,968,700 5,390,001
Less: Treasury Shares 28,243,146 25,686,409
----------- -----------
57,048,778 59,184,214
=========== ===========
CONSOLIDATED STATEMENTS OF CONDITION
(unaudited)
March 31, Dec. 31, Increase
2003 2002 (Decrease)
----------- ----------- -----------
(000's
omitted)
ASSETS:
Cash and due from banks $107,731 $137,085 $(29,354)
Federal funds sold 307,000 237,000 70,000
Securities available for
sale 1,024,708 911,432 113,276
Federal Home Loan Bank of
NY capital stock 99,900 112,150 (12,250)
Loans, net of allowance for
loan losses of $22,856 in 2003
and $22,773 in 2002 3,321,045 3,422,492 (101,447)
Loans held for sale 1,630,874 1,729,890 (99,016)
Accrued interest receivable 24,228 23,976 252
Bank premises and
equipment, net 48,892 47,545 1,347
Intangible assets, net 57,347 57,881 (534)
Other assets 279,890 255,644 24,246
----------- ----------- -----------
Total assets $6,901,615 $6,935,095 $(33,480)
=========== =========== ===========
LIABILITIES AND STOCKHOLDERS'
EQUITY
LIABILITIES:
Due Depositors-
Savings $1,089,014 $1,045,767 $43,247
Certificates of deposit 1,089,850 1,105,370 (15,520)
Money market 690,955 639,037 51,918
NOW accounts 142,586 134,450 8,136
Demand deposits 550,322 539,510 10,812
----------- ----------- -----------
Total deposits 3,562,727 3,464,134 98,593
Borrowed funds 2,506,920 2,756,927 (250,007)
Advances from borrowers for
taxes and insurance 25,729 23,537 2,192
Accrued interest and other
liabilities 181,274 76,229 105,045
----------- ----------- -----------
Total liabilities 6,276,650 6,320,827 (44,177)
----------- ----------- -----------
STOCKHOLDERS' EQUITY:
Common stock, par value $.01 per
share, 100,000,000 shares
authorized, 90,260,624 issued and
59,752,432 outstanding at March 31,
2003 and 90,260,624 issued and
60,269,397 outstanding at
December 31, 2002 903 903 -
Additional paid-in-capital 587,720 586,405 1,315
Retained earnings 409,932 391,739 18,193
Unallocated common stock held by
ESOP (26,782) (27,468) 686
Unearned common stock held by RRP (8,784) (8,894) 110
Treasury stock (30,508,192 shares
at March 31, 2003 and 29,991,227
at December 31, 2002), at
cost (348,789) (339,982) (8,807)
----------- ----------- -----------
614,200 602,703 11,497
Accumulated other comprehensive
income, net of taxes 10,765 11,565 (800)
----------- ----------- -----------
Total stockholders' equity 624,965 614,268 10,697
----------- ----------- -----------
Total liabilities and stockholders'
equity $6,901,615 $6,935,095 $(33,480)
=========== =========== ===========
SELECTED DATA (unaudited)
At or For the Three
Months
Ended March 31,
--------------------
2002
2003 (Restated)
--------------------
Earnings per share/Tangible book value per share
Earnings per share - Fully diluted $0.45 $0.16
Tangible book value per share $9.50 $8.22
Performance Ratios: (1)
-----------------------
Return on average assets 1.46% 0.66%
Return on average equity 16.53% 7.18%
Average interest-earning assets to
average interest-bearing liabilities 112.35% 113.76%
Interest rate spread 3.03% 2.96%
Net interest margin 3.37% 3.42%
Noninterest expenses, exclusive of
amortization of intangible assets, to
average assets 6.83% 5.15%
Efficiency ratio 72.96% 80.80%
Capital Ratios:
---------------
Average equity to average assets 8.82% 9.25%
Tangible equity to assets at end of
period 8.14% 8.20%
Total capital to risk-weighted assets 15.44% 14.99%
Asset Quality:
--------------
Non-accruing loans and real estate owned
to total assets at end of the period 0.39% 0.47%
Allowance for loan losses to
non-accruing loans at end of period 122.29% 77.69%
Allowance for loan losses to total loans
at end of period 0.46% 0.53%
Non-accruing loans $18,690 $27,248
Non-accruing loans and real estate owned $27,051 $28,965
Allowance for loan losses $22,856 $21,168
CONSOLIDATED STATEMENTS OF INCOME (unaudited)
QUARTER ENDED
March 31, Dec. 31, Sept. 30, June 30, March 31,
2003 2002 2002 2002 2002
-------------------------------------------------------
(000's omitted, except per share and share data)
(Restated) (Restated)
Interest
Income:
Loans $83,854 $86,445 $79,552 $75,755 $69,883
Securities,
available
for sale 12,865 15,457 20,761 24,016 23,825
Federal funds
sold 553 418 322 189 509
-------------------------------------------------------
Total
interest
income 97,272 102,320 100,635 99,960 94,217
-------------------------------------------------------
Interest
Expense:
Savings and
escrow
accounts 3,131 3,751 4,285 4,918 4,483
Certificates
of deposit 7,858 9,014 9,837 9,811 10,346
Money market
and NOW
accounts 4,003 4,515 4,423 3,985 3,357
Borrowed
funds 28,473 29,549 29,821 28,379 28,140
-------------------------------------------------------
Total
interest
expense 43,465 46,829 48,366 47,093 46,326
-------------------------------------------------------
Net
interest
income 53,807 55,491 52,269 52,867 47,891
Provision for
Loan Losses 850 (985) 3,349 4,990 1,500
-------------------------------------------------------
Net
interest
income after
provision
for loan
losses 52,957 56,476 48,920 47,877 46,391
Other Income
(Loss):
Service and
fee income 3,900 3,955 3,948 3,649 3,222
Net gains on
loan sales 87,838 78,923 55,293 35,054 37,130
Unrealized
gain (loss)
on derivative
transactions 4,357 (426) 14,033 (160) (860)
Loan fees 11,460 10,092 7,252 5,063 6,780
Other Income 1,899 1,928 1,917 4,879 1,830
Securities
transactions 315 (2,506) 1,512 432 167
-------------------------------------------------------
109,769 91,966 83,955 48,917 48,269
Other Expenses:
Personnel 26,067 25,126 9,905 21,728 39,501
Commissions 62,003 53,848 33,735 21,105 20,639
Occupancy and
equipment 5,180 4,942 4,085 3,814 3,621
Amortization
of intangible
assets 145 145 138 153 145
FDIC Insurance 145 136 131 125 120
Data processing 1,830 1,674 1,643 1,667 1,706
Marketing 1,740 1,683 1,322 1,382 1,110
Professional
fees 5,274 3,823 2,978 3,059 2,660
Other 16,902 14,740 10,232 9,249 8,278
-------------------------------------------------------
Total other
expenses 119,286 106,117 64,169 62,282 77,780
-------------------------------------------------------
Income before
provision
for income
taxes 43,440 42,325 68,706 34,512 16,880
Provision for
Income Taxes 17,997 17,763 28,230 13,927 6,856
-------------------------------------------------------
Income before
cumulative
effect of
accounting
change 25,443 24,562 40,476 20,585 10,024
Cumulative
effect of
change in
accounting
principle,
net of tax - - 4,731 - -
-------------------------------------------------------
Net Income $25,443 $24,562 $45,207 $20,585 $10,024
=======================================================
Earnings Per
Share:
Basic $0.46 $0.45 $0.81 $0.36 $0.18
Fully Diluted $0.45 $0.43 $0.78 $0.35 $0.16
Dividends
Declared Per
Share $0.13 $0.13 $0.13 $0.12 $0.11
Stock Closing
Price 14.920 20.140 17.400 19.200 19.680
Weighted
Average -
Fully Diluted
Shares
Common Shares 90,260,624 90,260,624 90,260,624 90,260,624 90,260,624
Less:
Unallocated
ESOP/RRP
Shares 4,968,700 5,073,993 5,181,972 5,296,410 5,390,001
Less:
Treasury
Shares 28,243,146 27,721,717 27,504,031 26,105,952 25,686,409
-------------------------------------------------------
57,048,778 57,464,914 57,574,621 58,858,262 59,184,214
=======================================================
Segment Reporting Table
For The Three Months Ended March 31, 2003 and 2002
Quarter Ended
March 31, 2003
(000's omitted)
unaudited
--------------------------------------
Mortgage Community Elimination Total
Banking Banking of
Intersegment
Items
--------------------------------------
Interest income $30,196 $82,387 $(15,311) $97,272
--------------------------------------
Interest expense 17,885 40,891 (15,311) 43,465
--------------------------------------
Net Interest income 12,311 41,496 - 53,807
Provision for loan losses - 850 - 850
Other income (loss):
Service and fee income - 6,605 (2,705) 3,900
Net gains (losses) on loan
sales 88,300 27 (489) 87,838
Unrealized gain on derivative
transactions 2,532 1,825 - 4,357
Loan fees 11,433 27 - 11,460
Other income - 1,899 - 1,899
Securities transactions - 315 - 315
--------------------------------------
Total other income (loss) 102,265 10,698 (3,194) 109,769
Other expenses 99,261 22,730 (2,705) 119,286
--------------------------------------
Income before provision for
income taxes 15,315 28,614 (489) 43,440
Provision for income taxes 6,278 11,900 (181) 17,997
--------------------------------------
Net income $9,037 $16,714 $(308) $25,443
======================================
Quarter Ended
March 31, 2002
(000's omitted)
unaudited and restated
--------------------------------------
Mortgage Community Elimination Total
Banking Banking of
Intersegment
Items
--------------------------------------
Interest income $22,315 $86,363 $(14,461) $94,217
--------------------------------------
Interest expense 15,102 45,685 (14,461) 46,326
--------------------------------------
Net Interest income 7,213 40,678 - 47,891
Provision for loan losses 700 800 - 1,500
Other income (loss):
Service and fee income - 3,222 - 3,222
Net gains (losses) on
loan sales 41,880 126 (4,876) 37,130
Unrealized gain (loss) on
derivative transactions (860) - (860)
Loan fees 6,015 765 - 6,780
Other income - 1,830 1,830
Securities transactions - 167 - 167
--------------------------------------
Total other income (loss) 47,035 6,110 (4,876) 48,269
Other expenses 38,909 38,871 - 77,780
--------------------------------------
Income before provision for
income taxes 14,639 7,117 (4,876) 16,880
Provision for income taxes 6,075 2,585 (1,804) 6,856
--------------------------------------
Net income $8,564 $4,532 $(3,072)$10,024
======================================
The Mortgage Company sells various types of loans in the secondary
market
The following table summarizes loans sold and gross margins
realized by the types of loan.
The table does not reflect the unrealized gains or losses on
derivative transactions (SFAS no.133), nor the effect of the
recognition of deferred loan costs or fees in accordance with SFAS
no.91.
------------------------------------
Quarter Ended March 31, 2003
------------------------------------
Net Realized Net Realized
Type Volume Gross Gain Gross Margin
----------------------------------------------
Agency Eligible $2,360,063,396 $50,311,820 2.13%
Government 347,567,863 11,835,158 3.41%
Jumbo 151,911,337 2,150,712 1.42%
Alt-A 731,064,605 17,339,661 2.37%
Sub Prime 137,505,222 4,202,226 3.06%
-----------------------------------------------
Total $3,728,112,423 $85,839,577 2.30%
===============================================
------------------------------------
Quarter Ended Dec. 31, 2002
------------------------------------
Net Realized Net Realized
Type Volume Gross Gain Gross Margin
----------------------------------------------
Agency Eligible $1,852,958,968 $41,382,562 2.23%
Government 584,203,613 15,606,522 2.67%
Jumbo 324,581,505 4,869,021 1.50%
Alt-A 737,708,054 18,837,475 2.55%
Sub Prime 90,773,971 2,826,324 3.11%
----------------------------------------------
Total $3,590,226,111 $83,521,905 2.33%
==============================================
AVERAGE BALANCES, NET INTEREST INCOME, YIELDS EARNED AND RATES PAID
(unaudited)
Three Months Ended March 31,
---------------------------------------
2003
---------------------------------------
Average
Average Yield/
Balance Interest Cost
-------------- ---------- -----------
Interest-earning assets: (000's omitted)
Loans receivable (1):
Real estate loans $ 5,156,099 $ 81,865 6.44%
Other loans 106,449 1,989 7.58%
-------------- ----------
Total loans 5,262,548 83,854 6.46%
Securities 1,011,951 12,865 5.16%
Other interest-earning
assets (2) 198,826 553 1.13%
-------------- ----------
Total interest-earning
assets 6,473,325 97,272 6.09%
----------
Noninterest-earning assets 602,837
--------------
Total assets $ 7,076,162
==============
Interest-bearing liabilities:
Deposits:
NOW and money market
deposits $ 806,018 4,003 2.01%
Savings and escrow
accounts 1,088,050 3,131 1.17%
Certificates of deposit 1,088,885 7,858 2.93%
-------------- ----------
Total deposits 2,982,953 14,992 2.04%
Total Other Borrowings 2,778,918 28,473 4.16%
-------------- ----------
Total interest-bearing
liabilities 5,761,871 43,465 3.06%
----------
Noninterest-bearing
liabilities (3) 690,133
--------------
Total liabilities 6,452,004
Stockholders' equity 624,158
--------------
Total liabilities and
stockholders' equity $ 7,076,162
==============
Net interest-earning
assets $ 711,454
==============
Net interest
income/interest rate
spread $ 53,807 3.03%
========== ===========
Net interest margin 3.37%
===========
Ratio of average
interest-earning assets
to average
interest-bearing
liabilities 112.35%
===========
Three Months Ended March 31,
---------------------------------------
2002 (Restated)
---------------------------------------
Average
Average Yield/
Balance Interest Cost
-------------- ---------- -----------
Interest-earning assets: (000's omitted)
Loans receivable (1):
Real estate loans $ 3,857,163 $ 67,652 7.11%
Other loans 106,137 2,231 8.52%
-------------- ----------
Total loans 3,963,300 69,883 7.15%
Securities 1,584,271 23,825 6.10%
Other interest-earning
assets (2) 131,419 509 1.57%
-------------- ----------
Total interest-earning
assets 5,678,990 94,217 6.73%
----------
Noninterest-earning assets 439,586
--------------
Total assets $ 6,118,576
==============
Interest-bearing liabilities:
Deposits:
NOW and money market
deposits $ 520,441 3,357 2.62%
Savings and escrow
accounts 915,964 4,483 1.98%
Certificates of deposit 1,079,803 10,346 3.89%
-------------- ----------
Total deposits 2,516,208 18,186 2.93%
Total Other Borrowings 2,475,947 28,140 4.61%
-------------- ----------
Total interest-bearing
liabilities 4,992,155 46,326 3.76%
----------
Noninterest-bearing
liabilities (3) 560,400
--------------
Total liabilities 5,552,555
Stockholders' equity 566,021
--------------
Total liabilities and
stockholders' equity $ 6,118,576
==============
Net interest-earning
assets $ 686,835
==============
Net interest
income/interest rate
spread $ 47,891 2.96%
========== ===========
Net interest margin 3.42%
===========
Ratio of average
interest-earning assets
to average
interest-bearing
liabilities 113.76%
===========
(1) The average balance of loans receivable includes nonperforming
loans, interest on which is recognized on a cash basis.
(2) Includes money market accounts and Federal Funds sold.
(3) Consists primarily of demand deposit accounts.
LOAN PORTFOLIO COMPOSITION - The following table sets forth the
composition of the Company at the dates indicated.
March 31, Dec. 31, Increase
2003 2002 (Decrease)
-------------------------------------
(000's omitted)
(unaudited)
Mortgage loans: (1)
Single-family residential $2,541,066 $2,671,041 $ (129,975)
Multi-family residential 58,334 56,545 1,789
Commercial real estate 444,459 418,708 25,751
Construction and land 160,978 153,144 7,834
Home equity 19,981 19,032 949
----------- ----------- -----------
Total mortgage loans 3,224,818 3,318,470 (93,652)
Other loans:
Student loans 328 228 100
Passbook loans 8,778 8,692 86
Commercial business loans 57,574 62,777 (5,203)
Other consumer loans 34,631 37,362 (2,731)
----------- ----------- -----------
Total other loans 101,311 109,059 (7,748)
----------- ----------- -----------
Total loans receivable 3,326,129 3,427,529 (101,400)
Less:
Premium on loans purchased 3,775 3,941 (166)
Allowance for loan losses (22,856) (22,773) (83)
Deferred loan costs 13,997 13,795 202
----------- ----------- -----------
Loans receivable, net $3,321,045 $3,422,492 $ (101,447)
=========== =========== ===========
(1) Mortgage loans held for sale at March 31, 2003 and December 31,
2002, of $1.6 billion and $1.8 billion, respectively, are not
included in this table.
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