Printer Friendly

QUEENS COUNTY SAVINGS BANK ANNOUNCES THIRD QUARTER AND NINE-MONTH EARNINGS

 FLUSHING, N.Y., Nov. 18 /PRNewswire/ -- Queens County Bancorp, Inc. (NASDAQ: QCSB), recently formed to become the holding company for Queens County Savings Bank ("the Bank"), and the Bank today reported the financial results for the Banks' third quarter and the nine-month period ending Sept. 30, 1993.
 Queens County Bancorp, Inc., was organized for the purpose of acquiring all of the capital stock of the Bank to be issued in the conversion of the Bank from a New York State chartered mutual savings bank to a New York State chartered stock savings bank. The registration statement for the holding company's common stock offered for sale in connection with the Bank's conversion, initially filed Aug. 3, 1993, was declared effective Oct. 1, 1993. On Nov. 12, 1993, the depositors approved the conversion of the Bank to a stock charter.
 Joseph R. Ficalora, chairman, president and chief executive officer of Queens County Bancorp, Inc., stated, "The conversion process will be completed shortly, at which time, trading in Queens County Bancorp, Inc., stock will be on the NASDAQ National Market."
 Financial Condition
 Total assets increased $16.3 million, or 1.7 percent, from $951.4 million at Dec. 31, 1992, to $967.7 million at Sept. 30, 1993. Loans, net increased $21.0 million, or 3.1 percent, from $685.3 million at Dec. 31, 1992, to $706.3 million at Sept. 30, 1993. Investment securities experienced a decline of $14.4 million, or 13.8 percent, from $104.1 million at Dec. 31, 1992, to $89.7 million at Sept. 30, 1993. This decline is attributed to the funds from matured investment securities being placed in money market investments. This reflects management's response to declining interest rates and maintenance of excess liquidity in the form of short-term money market investments as depositors continued to shift funds into shorter term liquid savings products. Mortgage-backed securities increased minimally by $389,000 from $105.1 million at Dec. 31, 1992, to $105.5 million at Sept. 30, 1993.
 Deposits experienced an increase of $11.9 million, or 1.4 percent, from $824.4 million at Dec. 31, 1992, to $836.3 million at Sept. 30, 1993. Net worth at Dec. 31, 1992, was $92.4 million and increased to $101.1 million at Sept. 30, 1993, an increase of $8.7 million, or 9.4 percent, which represented the net income for the nine months ended Sept. 30, 1993. Net worth to total assets at Sept. 30, 1993 was 10.45 percent, which far exceeded all regulatory requirements in effect.
 Comparison of Operating Results for the Three Months and Nine Months Ended Sept. 30, 1992 and 1993.
 Interest income was $18.5 million for the quarter and $56.1 million for the nine months ended Sept. 30, 1993, compared to $19.0 million and $57.7 million for the comparable periods in 1992. The decrease of $500,000 for the 1993 quarter when compared to the prior year's period was primarily due to a decrease in the yield on interest-earning assets to 7.96 percent for the quarter ended Sept. 30, 1993, from 8.19 percent for the quarter ended Sept. 30, 1992, offset in part, by a minimal increase of $3.1 million in the average balance of interest-earning assets to $929.1 million for the quarter ended Sept. 30, 1993, from $926.0 million for the comparable period in 1992. The decrease of $1.6 million for the nine months ended Sept. 30, 1993, was primarily due to a decrease in the yield on interest-earning assets to 8.09 percent for this period as compared to 8.53 percent for the comparable period of 1992, offset partially, by an increase of $22.2 million in the average balance of interest-earning assets to $923.8 million for the nine months ended Sept. 30, 1993, from $901.6 million for the same period in 1992. The decrease in yields on interest-earning assets between the respective periods was primarily due to the lower interest rate environment.
 Interest expense was $7.1 million for the quarter and $22.0 million for the nine months ended Sept. 30, 1993, compared to $9.1 million and $29.3 million for the comparable periods in 1992. The decrease of $2.0 million for the 1993 quarter when compared to the prior year's period was primarily due to a decrease in the average cost of interest-bearing liabilities to 3.43 percent for the quarter ended Sept. 30, 1993, from 4.36 percent for the quarter ended Sept. 30, 1992, coupled with a decrease of $6.8 million in the average balance of interest-bearing liabilities to $828.5 million for the quarter ended Sept. 30, 1993, from $835.3 million for the comparable period of 1992. The nine-month decrease in interest expense of $7.3 million is attributed to a decline in the average cost of interest-bearing liabilities to 3.52 percent for the nine months ended Sept. 30, 1993, from 4.79 percent for the comparable period of 1992, offset partially by an increase of $14.5 million in the average balance of interest-bearing liabilities to $831.0 million for the nine months ended Sept. 30, 1993, as compared to $816.5 million for the corresponding period in 1992. The decrease in the cost of interestbearing liabilities between the respective periods was primarily due to the lower interest rate environment.
 Net interest income was $11.4 million for the quarter and $34.1 million for the nine months ended Sept. 30, 1993, compared to $9.8 million and $28.4 million for the comparable periods in 1992. The net interest spread was 4.52 percent for the quarter ended 1993 compared to 3.82 percent for the 1992 quarter, while the net interest spread for the nine months ended Sept. 30, 1993, was 4.57 percent compared to 3.74 percent for the same period in 1992.
 The provision for loan losses was $600,000 for the quarter and $4.1 million for the nine months ended Sept. 30, 1993, compared to $700,000 and $2.7 million for the comparable periods in 1992. The allowance for loan losses was 92.8 percent of non-performing loans and 67.7 percent of non-performing assets as of Sept. 30, 1993, as compared to 36.8 percent of non-performing loans and 29.9 percent of non-performing assets as of Sept. 30, 1992. The increase in the allowance reflects management's assessment of the risks associated with the Bank's increased emphasis on multi-family and underlying cooperative mortgage loans which are considered to be at greater risk of default than one- to four-family mortgage loans. The Bank also considered the greater risks associated with its sizeable portfolio of limited documentation loans, coupled with the decline in the regional and national economies and the deterioration of real estate values experienced in the Bank's primary lending area. Management believes that the addition to the provision for loan losses was appropriate given the current regional and economic and regulatory environment. In its opinion, the Bank has made adequate loss provisions based upon available and relevant information, affecting the loan portfolio.
 Oter operating income was $556,000 for the three months and $1.3 million for the nine months ended Sept. 30, 1993, compared to $910,000 and $1.7 million for the respective periods in 1992. The decrease experienced in the 1993 periods was primarily attributable to a non-recurring gain on the sale of a Bank branch during the third quarter of 1992 in the amount of $560,000.
 Other operating expenses totalled $5.1 million for the quarter and $14.7 million for the nine months ended Sept. 30, 1993, compared to $4.7 million and $13.4 million for the respective periods in 1992. Compensation and benefits increased $231,000, or 8.7 percent, to $2.9 million for the quarter ended Sept. 30, 1993, compared with the similar period of 1992. The nine-months period ended Sept. 30, 1993, was $8.2 million, reflecting an increase of $755,000 or, 10.1 percent, from the corresponding 1992 period. The increases reflected herein were primarily attributable to normal salary increases, increases in staff levels, and increases in benefits expense, including the current period expense of post-retirement benefits other than pensions in accordance with Statement of Financial Accounting Standards Board Number 106, "Employer's Accounting for Post-retirement Benefits Other Than Pensions." This statement concludes that an entity should accrue for post-retirement benefits of employees over the period of the employee's service to the company, rather than on a cash basis after retirement. Occupancy and equipment expense decreased minimally by $19,000 from $700,000 for the quarter ended Sept. 30, 1992, to $681,000 for the similar period of 1993. Occupancy and equipment expense for the nine month period ended Sept. 30, 1993, was $1.9 million, reflecting an increase of $92,000 from the corresponding period of 1992.
 General and administrative expense was $861,000 for the quarter ended Sept. 30, 1993, increasing minimally from $815,000 for the comparable 1992 period. General and administrative expense for the nine-month period ended Sept. 30, 1993, was $2.6 million reflecting an increase of $127,000, or 5.2 percent, as compared to the corresponding 1992 period. Federal deposit insurance premium expense remained relatively unchanged at $481,000 for the quarter ended Sept. 30, 1993. Such expense for the nine-month period ended Sept. 30, 1993, totaled $1.4 million increasing $40,000, or 2.9 percent, from the comparable period in 1992. Other operating expenses were $159,000 for the quarter ended Sept. 30, 1993, and $543,000 for the nine months ended Sept. 30, 1993, compared to $27,000 and $297,000 for the respective periods in 1992.
 Income tax expense, which includes federal, state, and local income taxes was $3.0 million for the quarter and $7.9 million for the nine months ended Sept. 30, 1993, compared to $2.2 million and $5.9 million for the corresponding 1992 periods. The increases primarily resulted from the increase in taxable income and also reflects the provision for loan losses, which is not fully deductible for income tax purposes.
 In the nine month period ended Sept. 30, 1992, two recently issued accounting pronouncements were adopted by the bank and are described as follows:
 In December 1990, the Financial Accounting Standards Board ("FASB") issued Statement of Financial Accounting Standards ("SFAS") No. 106, "Employers' Accounting for Post-retirement Benefits Other Than Pensions." The new method of accounting for post-retirement benefits other than pensions requires accrual, during the years an active employee renders the necessary service, of the expected cost of providing those benefits to an employee and the employee's beneficiaries and covered dependents. The Bank adopted SFAS No. 106, effective Jan. 1, 1992, and has reported the cumulative effect of that change in the method of accounting for post-retirement health care benefits in the 1992 consolidated statement of operations as a charge to net income of $1.6 million net of tax.
 In February 1992, the FASB issued SFAS No. 109, "Accounting for Income Taxes." SFAS No. 109 requires a change from the deferred method to the asset and liability method of accounting for income taxes. Under the asset and liability method, deferred income taxes are recognized for the tax consequences of "temporary differences" by applying enacted statutory tax rates applicable to future years to differences between the financial statement carrying amounts and the tax basis of existing assets and liabilities. Under SFAS No. 109, the effect on deferred taxes of a change in tax rates is recognized in income in the period that includes the enactment date, whereas under the deferred method, deferred taxes are not adjusted for subsequent changes in tax rates. The Bank adopted SFAS No. 109 in the first quarter of 1992 on a prospective basis, with the cumulative effect of this accounting change amounting to an increase of the financial statement net deferred tax asset of $607,000, with a corresponding credit to income.
 The following tables set forth selected condensed consolidated financial data of Queens County Savings Bank at and for the periods indicated. Consolidated financial and operating data, financial ratios and other data at and for the three and nine months ended Sept. 30, 1992 and 1993, were derived from unaudited financial statements. In the opinion of management, all adjustments necessary for a fair presentation of results of the unaudited periods presented have been included.
 At 12/31/92 At 9/30/93
 (Unaudited)
 (In thousands)
 Financial Condition Data:
 Total assets $ 951,374 $ 967,661
 Loans, net 685,261 706,263
 Investment securities 104,059 89,648
 Mortgage-backed securities 105,127 105,516
 Deposits 824,349 836,259
 Net worth 92,371 101,128
 Period ended Three months Nine months
 Sept. 30, 1992 1993 1992 1993
 (In thousands)
 Operating Data: (unaudited)
 Interest income: $ 18,959 $ 18,484 $ 57,694 $ 56,060
 Interest expense: 9,115 7,114 29,317 21,967
 Net interest income: 9,844 11,370 28,377 34,093
 Less provision for
 loan losses: 700 600 2,700 4,100
 Net interest income
 after provision for
 loan losses: 9,144 10,770 25,677 29,993
 Other operating income
 Fee income 306 493 1,015 1,240
 Gain on sale of branch 560 0 560 0
 Other income 44 63 77 103
 Total other operating
 income 910 556 1,652 1,343
 Other operating expenses
 Compensation and
 benefits 2,646 2,877 7,459 8,214
 Occupancy and equipment 700 681 1,805 1,897
 General and
 administrative 815 861 2,440 2,567
 FDIC insurance premium 478 481 1,387 1,427
 Other 27 159 297 543
 Total other operating
 expenses 4,666 5,059 13,388 14,648
 Income before income
 taxes and cumulative
 effect of accounting
 changes 5,388 6,267 13,941 16,688
 Income tax expense 2,226 3,042 5,865 7,931
 Income before cumulative
 effect of accounting
 changes 3,162 3,225 8,076 8,757
 Cumulative effect on prior
 years of changing to different
 methods of accounting for post-
 retirement benefits other than
 pensions and income taxes 0 0 (956) 0
 Net income $ 3,162 $ 3,225 $ 7,120 $ 8,757
 The following tables set forth selected condensed consolidated financial data of Queens County Savings Bank at and for the periods indicated. Consolidated financial and operating data, financial ratios and other data at and for the three and nine months ended Sept. 30, 1992 and 1993, were derived from unaudited financial statements. In the opinion of management, all adjustments necessary for a fair presentation of results of the unaudited periods presented have been included.
 At or For Periods Ended Three months Nine months
 Sept. 30, 1992 1993 1992 1993
 (Unaudited)
 Selected Financial Ratios
 and Other Data:
 Return on average assets 1.33 pct 1.34 pct 1.02 pct 1.21 pct
 Return on average net worth 13.87 13.04 10.76 11.67
 Average net worth to
 average assets 9.59 10.27 9.48 10.36
 Net worth to total assets 9.48 10.45 9.48 10.45
 Interest rate spread 3.82 4.52 3.74 4.57
 Net interest margin (A) 4.25 4.90 4.20 4.92
 Other operating expenses
 to average assets 1.96 2.10 1.92 2.02
 Ratio of net interest income
 to operating expenses 2.11 x 2.25 x 2.12 x 2.33 x
 Non-performing loans to
 loans, net 2.33 1.49 2.33 1.49
 Non-performing assets to
 total assets (B) 2.03 1.49 2.03 1.49
 Allowance for loan losses
 to non-performing loans 36.76 92.85 36.76 92.85
 Allowance for loan losses
 to non-performing assets 29.95 67.74 29.95 67.74
 Allowance for loan losses
 to loans, net 0.85 1.38 0.85 1.38
 Average interest-earning
 assets to average interest-
 bearing liabilities 110.86 112.12 110.43 111.17
 Facilities: Full service
 offices (C) 7 7 7 7
 (A) Calculation is based upon net interest income before provision for loan losses divided by interest-earning assets.
 (B) Non-performing assets consists of non-performing loans, real estate owned and commercial real estate loans pending foreclosure.
 (C) The Bank also operates a limited service branch and mortgage origination and processing center.
 -0- 11/18/93
 /CONTACT: Michael J. Lincks of Queens County Bancorp, 718-359-6400/
 (QCSB)


CO: Queens County Bancorp, Inc. ST: New York IN: FIN SU: ERN

TW -- NY036 -- 6131 11/18/93 14:50 EST
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Nov 18, 1993
Words:2765
Previous Article:ARCA ANNOUNCES OPENING OF LOS ANGELES RECYCLING CENTER
Next Article:J.A. INDUSTRIES ANNOUNCES LETTER OF INTENT WITH CAPITAL CITY PLASTICS
Topics:

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters