Staten Island Bancorp Issues First Report of Operations
STATEN ISLAND, N.Y.--(BUSINESS WIRE)--Jan. 22, 1998--Staten
Island Bancorp, Inc. (NYSE:SIB), the holding company for the Staten
Island Savings Bank, reported a net loss of $2.4 million for the
quarter ended December 31, 1997.
Net income for the year ended December 31, 1997 was $14.5
million. Results of operations for the current quarter and year-end
reflect a non-recurring contribution to the SISB Community
Foundation. Excluding the effect of this contribution, net income
was $11.3 million and $28.3 million. This compares to net income of
$5.2 million and $21.8 million for the fourth quarter and year end
1996, respectively. Loss per share since the conversion to a public
company on December 19, 1997 was $.29. Exclusive of the
contribution, net income per share was $.02 since the date of
conversion. Per share amounts are not applicable to 1996 results.
This is the Company's first report of operations.
The SISB Community Foundation was established as part of Staten
Island Savings Bank's conversion to a stock savings bank and the
formation of Staten Island Bancorp, Inc. At the close of the stock
offering in December 1997, Staten Island Bancorp, Inc. funded the
foundation with a one-time donation of 2,149,062 shares of common
stock resulting in a one-time, non-recurring charge of $25.8 million
($13.8 million after tax).
Harry P. Doherty, Chairman & CEO, stated "Exclusive of the
contribution to the Foundation we are pleased to report solid core
earnings for our fourth quarter and year ended December 31, 1997.
The establishment of the SISB Community Foundation reflects our
strong ongoing commitment to the communities that we serve. We are
also gratified by the support which our customers demonstrated in our
recent stock conversion and the success of the offering."
Doherty added, "As a public company, we now look forward to
providing value for our shareholders, while at the same time
providing the same high degree of service to our customers."
Financial Condition
Total assets at December 31, 1997 were $2.65 billion, an increase of
$868.8 million or 48.7% from $1.78 billion at December 31, 1996.
The increase was mainly due to an increase in loans, net by $114.9
million or 11.9%, investment securities by $647.3 million or 92.1%
and federal funds sold by $81.4 million. Such increases were funded
primarily by an increase of $250.0 million in borrowed funds, a $45.9
million increase in deposits and the net proceeds received in the
conversion.
Stockholders' equity totaled $685.9 million at December 31, 1997
compared to $171.1 million at December 31, 1996. The $514.8 million
increase was primarily due to net proceeds of $507.2 million
received from the conversion. In the conversion, the Employee Stock
Ownership Plan ("ESOP") of the Bank purchased 3,438,500 shares,
utilizing the proceeds of a $41.3 million dollar loan from the
Company. Tangible book value per share was $14.79 and the tangible
equity to asset ratio was 25.35% at December 31, 1997. The Bank's
capital ratios are well in excess of all regulatory requirements at
year end December 31, 1997.
Asset Quality
Total non-performing assets were $21.9 million at December 31, 1997
compared to $24.1 million at December 31, 1996. This represents a
decrease of $2.2 million or 9.1%. Non-performing assets consist of
$21.3 million of non-performing loans and $0.6 million of other real
estate owned ("OREO") at December 31, 1997. Non-performing loans
and OREO were $23.0 million and $1.1 million respectively at
December 31, 1996. Non-performing assets as a percentage of total
assets was .83% at December 31, 1997 compared to 1.34% at December
31, 1996.
The allowance for loan losses was $15.7 million at December 31,
1997 an increase of $5.7 million from $10.0 million at December 31,
1996. The allowance for loan losses as a percentage of
non-performing loans was 73.70% at December 31, 1997 compared to
43.36% at December 31, 1996.
Net Interest Income
Net interest income before the provision for loan losses was
$27.3 million for the quarter ended December 31, 1997 compared to
$20.7 million for the similar quarter of a year ago. This
represents a $6.6 million or 32.1% increase, which was primarily the
result of a $824.1 million increase in average earning assets for
the current quarter. The increase in average earning assets was due
to the stock subscription offering as well as a leveraging program
initiated by the Bank utilizing borrowed funds to increase net
interest income. The proceeds from the conversion were invested in
short-term money market funds. As a result, the yield on earning
assets was 7.35% for the current quarter compared to 7.84% for the
same quarter of last year. Average cost of funds was 3.58% for the
quarter ended December 31, 1997 compared to 3.60% for the quarter
ended December 31, 1996. The net interest spread and margin were
3.76% and 4.32%, respectively for the current quarter compared to
4.24% and 4.86% respectively for the similar period of a year ago.
Net interest income before the provision for loan losses for the
year ended December 31, 1997 increased by $12.8 million or 17.2% to
$86.8 million from $74.0 million for the year ended December 31,
1996. Average earning assets for the year increased by $318.6
million as a result of the reasons noted above. The average interest
earning yield for the year ended December 31, 1997 was 7.42% compared
to 7.49% for the year ended December 31, 1996. The average cost of
funds for the current year was 3.60% compared to 3.65% for a year
ago. The net interest rate spread remained constant at 3.82% for
1997 and 3.84% for 1996. Net interest margin was 4.39% for the
year-end December 31, 1997 compared to 4.46% for the year ended
December 31, 1996.
Other Income
Total other income amounted to $2.3 million and $7.5 million for the
quarter and year ended December 31, 1997 respectively, compared to
income (loss) of $(0.7) million and $3.9 million for the comparable
periods in 1996. Losses on securities of $2.5 and $2.7 million were
reflected in the quarter and year-end results respectively for 1996,
while the quarter ended December 31, 1997 reflected securities gains
of $0.3 million and year-end December 31, 1997 results reflect
security losses of $0.1 million.
Service and fee income increased $0.2 million or 10.0% to $2.0
million for the quarter ended December 31, 1997, compared to $1.8
million for the quarter ended December 31, 1996. For the year
ended December 31, 1997, service and fee income was $7.5 million
compared to $6.6 million for the year ended December 31, 1996,
representing an increase of $0.9 million or 13.6%. These increases
for both the quarter and year-end December 31, 1997 are primarily due
to higher fees collected as a result of increased volumes in checking
accounts.
Other Expenses
Exclusive of the $25.8 million contribution to the Foundation, total
other operating expenses remained virtually unchanged at $10.0
million for the quarter ended December 31, 1997 compared to $9.9
million for the quarter ended December 31, 1996. Total other
expenses, exclusive of the contribution to the Foundation, amounted
to $42.9 million for the year ended December 31, 1997, an increase
of $2.9 million or 7.1% compared to $40.1 million for the year ended
December 31, 1996. The primary reasons for the overall increase,
was an increase in personnel cost of $1.3 million, data processing
of $1.1 million and marketing of $0.3 million. The increase in
personnel expense was the result of normal salary increases as well
as the payment of a special bonus of $0.7 million to all officers and
employees. The increase in data processing reflects a one-time
write-off of $1.0 million investment in the Bank's data processing
provider. The increase in marketing expense reflects the Bank's
efforts to penetrate new business opportunities particularly in the
commercial business development area, and trust services.
Statements contained in this news release which are not
historical facts are forward-looking statements, as that term is
defined in the Private Securities Litigation Reform Act 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, which
include, but are not limited to, factors discussed in documents
filed by the Company with the Securities and Exchange Commission
from time to time.
Staten Island Bancorp, Inc. is the holding company for Staten
Island Savings Bank. The Bank was chartered in 1864 and now
operates sixteen full service branches and three limited service
branches on Staten Island, and one full service branch in Brooklyn.
The Bank also provides Trust services and Savings Bank Life
insurance.
STATEN ISLAND BANCORP
Dec. 31
1997 1996
Selected Financial Condition Data:
Total Assets $ 2,651,170 $ 1,782,323
Cash and cash equivalents 58,435 43,522
Federal Funds 90,500 9,100
Securities available for sale 1,350,467 703,134
Loans receivable, net 1,082,918 968,015
Intangible assets 18,414 20,490
Deposit accounts 1,623,652 1,577,748
Borrowings 250,042 54
Stockholders' equity 685,886 171,080
Non Performing Assets 21,934 24,112
Common shares outstanding (a) 45,130,312 na
Three Months Ended
Dec. 31 Year Ended Dec. 31
1997 1996 1997 1996
Selected Operating Data:
Interest and dividend
income $ 46,495 $ 33,334 $ 146,812 $ 124,430
Interest expense 19,187 12,666 60,057 50,437
Net interest income 27,308 20,668 86,755 73,993
Provision for possible loan
losses 501 500 6,003 1,000
Net interest income after
provision for possible
loan losses 26,807 20,168 80,752 72,993
Other income (loss) 2,284 (748) 7,454 3,929
Charitable contribution to
SISB Community Foundation 25,817 - 25,817 -
Other expenses 10,003 9,934 42,908 40,066
Income before provision for
income taxes (6,729) 9,486 19,481 36,856
Provision for income taxes (4,280) 4,299 4,932 15,081
Net income (loss) $ (2,449) $ 5,187 $ 14,549 $ 21,775
(a) includes 3,438,500 shares held by the Bank's ESOP
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Staten Island Bancorp Inc.
Key Operating Ratios:
At or For the At of For the
Three Months Twelve Months
Ended Dec. 31, Ended Dec. 31,
1997 1996 1997 1996
Performance Ratios:
Return on average
assets (a) 1.70% 1.15% 1.36% 1.24%
Return on average
equity (a) 21.64% 12.53% 15.18% 14.03%
Net income per common
share since conversion
excluding charitable
contribution $ 0.02 na $ 0.02 na
Net income per common
share since conversion $(0.29) na $ (0.29) na
Average interest-earning
assets to average
interest-bearing
liabilities 118.23% 120.73% 118.70% 120.24%
Interest rate spread 3.76% 4.24% 3.82% 3.84%
Net interest margin 4.32% 4.86% 4.39% 4.46%
Noninterest expenses,
exclusive of
amortization of
intangible assets, to
average assets (a) 1.43% 2.10% 1.96% 2.16%
Asset Quality Ratios:
Nonperforming assets to
total assets at end of
period 0.83% 1.34% 0.83% 1.34%
Allowance for loan losses
to nonperforming loans
at end of period 73.70% 43.36% 73.70% 43.36%
Allowance for loan losses
to total loans at end of
period 1.43% 1.02% 1.43% 1.02%
Capital and Other Ratios:
Average equity to average
assets 7.87% 9.21% 8.96% 8.85%
Tangible equity to assets
at end of period 25.35% 8.55% 25.35% 8.55%
Total capital to risk-
weighted assets 62.70% 20.66% 62.70% 20.66%
Tangible book value
per share $ 14.79 na $14.79 na
(a) Excludes the one time nonrecurring charge of $25.8 million ($13.8
million net of tax) for the funding of the SISB Community
Foundation.
CONTACT:
Staten Island Bancorp Inc.
Donald Fleming, 718/447-7900, ext. 509
KEYWORD: NEW YORK
BW1105 JAN 22,1998
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