Commercial Bank of New York Announces First Quarter Income

Apr 24, 2001, 01:00 ET from Commercial Bank of New York

    NEW YORK, April 24 /PRNewswire Interactive News Release/ --
 Commercial Bank of New York (Nasdaq: CBNY) announced that net income for the
 first quarter of 2001, excluding $1,193,000 in merger-related charges and
 $250,000 booked as a cumulative effect of changes in accounting principles due
 to the adoption of SFAS 133 (Accounting for Derivatives), was $2,159,000, a
 decrease of 10% from $2,390,000 in the first quarter of 2000. Net income
 including these items was $716,000 in the first quarter of 2001.  Diluted
 earnings per share for the first quarter of 2001 excluding the charges were
 $0.41 versus $0.45 in the same period of 2000.  On February 13, 2001, North
 Fork Bank and Commercial Bank of New York announced an agreement to merge,
 subject to regulatory and shareholder approval.
     Diluted cash earnings(1) for the first quarter of 2001 excluding
 merger-related and the change in accounting principles charges were
 $2,475,000, or $0.47 per share, down 9% from the $2,720,000, or $0.51 per
 share, diluted cash earnings in the first quarter of 2000.
     Jacob Berman, President said, "The first quarter was extremely significant
 for Commercial Bank.  In February, we agreed to accept an offer of $32 per
 CBNY share to merge with North Fork Bank.  This transaction will enable our
 shareholders to realize the full value of their investment.  The transaction
 is subject to regulatory approval, and is anticipated to close in the third
 quarter of this year.  As a part of this transaction, CBNY Investment Services
 Corp. ("CBNYISC"), our newly-formed broker  / dealer subsidiary, will be spun
 off in a rights offering to CBNY shareholders."
     "During the first quarter, Commercial Bank continued to follow the path
 which proved successful in the past.  We remain committed to excellence in
 customer service, and to a conservative asset structure.  The 10% decline in
 net income is, to a large extent, attributable to lower loan outstandings and
 to the decrease in securities transaction fees from customers due to unsettled
 markets."
     Net interest income for the first quarter of 2001 was $10,912,000,
 compared to $10,924,000 in the first quarter of 2000.  The Bank's net interest
 margin for the first quarter of 2001 was 3.19%, down from 3.48% in the first
 quarter of 2000, and 3.35% in the fourth quarter of 2000.
     Management's analysis of the composition of the Bank's loan portfolio
 indicated that the level of the Allowance for Loan Losses continues to be
 adequate.  As of March 31, 2001, 32% of the Bank's loans were fully secured by
 cash, bank guarantees or marketable securities, 52% were secured by other
 collateral, and 16% were unsecured.  On March 31, 2001 the Allowance for Loan
 Losses was $5,756,000 and there were no non-accrual loans.
     Total noninterest income for the first quarter of 2001 was $3,921,000,
 compared to $3,904,000 in the first quarter of 2000.  An increase in customer
 service fees was offset by a decrease in income on trades for customers.
 Noninterest expenses, excluding the merger-related expenses, increased by
 $584,000, or 5% in the first quarter of 2001 to $11,429,000 from $10,845,000
 in the first quarter of 2000. The major factor was an increase in salaries and
 benefits of $431,000, or 9%.
     Total assets were $1.464 billion on March 31, 2001 compared to
 $1.366 billion on March 31, 2000.  Loans on March 31, 2001 were $449 million,
 or 30.7% of assets compared to $490 million on March 31, 2000.
     Total investment securities increased to $865 million on March 31, 2001
 compared to $834 million on December 31, 2000, reflecting the reinvestment of
 loan paydowns and a redeployment of short-term investments.  Investment
 securities were 55.3% of average assets in the first quarter of 2001, up from
 54.2% in the first quarter of 2000.
     Total deposits increased by 6% to $1.314 billion on March 31, 2001 from
 $1.241 billion on March 31, 2000.  The sum of deposits, assets under
 management, and custody assets was $2.101 billion on March 31, 2001, compared
 to $2.106 billion on March 31, 2000.
     As of March 31, 2001 the Bank's Leverage ratio, Tier I Risk-based Capital
 Ratio and Total Risk-based Capital Ratio were approximately 5.7%, 12.9% and
 13.8% respectively, compared to 5.6%, 11.6% and 12.5% respectively as of March
 31, 2000.
     Mr. Gabriel Safdie, Chairman, added, "I'm gratified that Commercial Bank's
 shareholders will be receiving good value for their investment once the merger
 with North Fork is completed.  Their trust and loyalty are being rewarded.  We
 have hopes that our broker / dealer will be successful in attracting and
 servicing a large number of our international customers."
 
     (1) Cash earnings adds back amortization of goodwill to net income
 
 
                            COMMERCIAL BANK OF NEW YORK
                  CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
                                  (in thousands)
 
                                                  March 31,         March 31,
                                                     2001              2000
                                                 (Unaudited)       (Unaudited)
     ASSETS:
     Cash and due from banks                        $29,052           $34,750
     Interest-bearing deposits in banks               2,668               347
     Investment securities:
         -Held to maturity - Fair value of
          $175,802, $219,566 respectively           172,829           224,307
         -Available for sale                        691,888           493,076
     Federal funds sold                              34,500            29,000
     Loans - net of unearned discount               449,345           489,838
     Allowance for possible loan losses              (5,756)           (5,417)
         Net loans                                  443,589           484,421
     Premises and equipment - net                    10,152            10,987
     Customers' acceptance liability                  3,040             5,255
     Accrued interest receivable                     11,731            11,574
     Goodwill                                        13,855            13,757
     Deferred tax assets                              9,894            21,087
     Accounts receivable                             38,283            33,985
     Other assets                                     2,270             3,104
         Total assets                            $1,463,751        $1,365,650
 
     LIABILITIES AND SHAREHOLDERS' EQUITY:
     Deposits:
       Noninterest-bearing
       (domestic offices)                          $210,909          $211,289
       Interest-bearing:
         Domestic offices                           825,852           795,781
         Foreign offices                            276,769           233,948
             Total deposits                       1,313,530         1,241,018
     Liability on acceptances                         3,040             5,255
     Accrued taxes and other expenses                 7,065             7,320
     Accrued interest payable                         4,955             4,180
     Other borrowed funds                             1,405             1,713
     Accounts payable                                24,660            21,242
     Other liabilities                                3,123               640
         Total liabilities                        1,357,778         1,281,368
     Total shareholders' equity before
      accumulated
         other comprehensive income (loss)          103,021            96,646
         Accumulated other comprehensive
          income (loss)                               2,952           (12,364)
         Total shareholders' equity                 105,973            84,282
         Total liabilities and
          shareholders' equity                   $1,463,751        $1,365,650
 
 
                            COMMERCIAL BANK OF NEW YORK
                       CONSOLIDATED STATEMENTS OF OPERATIONS
                     (in thousands except for per share data)
 
 
                                                            March 31,
                                                           (Unaudited)
                                                      2001              2000
     Interest income:
       Interest and fees on loans                   $10,040           $10,531
       Interest and dividends on
        investment securities                        13,293            11,627
       Interest on federal funds sold                   937               337
       Interest on deposits
        in financial institutions                       162                 9
         Total interest income                       24,432            22,504
     Interest expense:
       Interest on deposits                          13,479            11,532
       Interest on borrowings                            41                48
         Total interest expense                      13,520            11,580
 
     Net interest income                             10,912            10,924
      Provision for possible loan losses                120               120
     Net interest income after provision
       for possible loan losses                      10,792            10,804
     Noninterest income:
       Customer service fees                          2,655             2,532
       Net gains (losses) on proprietary
        securities and trading assets                     2                (1)
       Income on trades for customers                   412               555
       Net trading gains and fees from
        foreign exchange transactions                    74                88
       Other                                            778               730
         Total noninterest income                     3,921             3,904
     Noninterest expenses:
       Salaries and employee benefits                 5,151             4,720
       Net occupancy expense                          2,700             2,669
       Merger Related Expenses                        1,193                 -
       Other                                          3,578             3,456
         Total noninterest expenses                  12,622            10,845
 
     Income before provision for income
      taxes and cumulative effect of
      change in accounting principle                  2,091             3,863
     Provision for income taxes                       1,125             1,473
     Net income before cumulative effect
      of change in accounting principle                $966            $2,390
     Cumulative effect of change in
      accounting principle
      (after tax effect)                              (250)                -
     Net income                                        $716            $2,390
     Net income available to common
      shareholders                                     $716            $2,390
     Basic earnings per share                         $0.14             $0.45
     Diluted earnings per share                       $0.14             $0.45
     Average common shares outstanding            5,299,593         5,299,593
     Diluted average shares outstanding           5,299,593         5,299,593
 
 
                            COMMERCIAL BANK OF NEW YORK
                              SELECTED FINANCIAL DATA
 
                                                        Three months ended
                                                            March 31,
                                                           (Unaudited)
                                                     2001              2000
                                                      (Dollars in thousands,
                                                      except per share data)
 
     SUMMARY OF EARNINGS:
     Interest Income                                $24,432           $22,504
     Interest Expense                                13,520            11,580
     Net interest income                            $10,912           $10,924
     Provision for credit losses                        120               120
     Noninterest income                               3,921             3,904
     Noninterest expenses                            12,622            10,845
     Earnings before income taxes                     2,091             3,863
     Income taxes                                     1,125             1,473
     Net earnings before cumulative effect
      of change in accounting principle                 966             2,390
     Cumulative effect of change in
      accounting principle                             (250)              --
     Net earnings                                      $716            $2,390
 
     PER SHARE DATA:  (1)
     Net earnings-basic                               $0.41             $0.45
     Net earnings-diluted                             $0.41             $0.45
     Book value at period end                        $20.27            $15.90
     Book value at period end(excluding
      valuation allowances)                          $19.71            $18.24
     Weighted average common shares
      outstanding                                 5,299,593         5,299,593
     Diluted weighted average common
      shares outstanding                          5,299,593         5,299,593
 
     SELECTED PERFORMANCE RATIOS:  (1)
     Return on average assets                         0.58%             0.70%
     Return on average equity                         8.26%            11.56%
     Return on average tangible equity               10.21%            15.51%
     Net interest margin                              3.19%             3.48%
     Non-accrual assets                                  --             1,048
     Efficiency ratio excluding securities
      profits/(losses)                               77.06%            73.13%
     Noninterest expense to average total
      assets                                          3.07%             3.18%
 
     CASH EARNINGS DATA:  (1)
     Earnings                                        $2,475            $2,720
     Earnings per share                               $0.47             $0.51
     Return on average assets                         0.67%             0.80%
     Return on average equity                         9.47%            13.16%
     Return on average tangible equity               11.71%            17.66%
     Efficiency ratio excluding securities
      profits/(losses)                               74.93%            70.91%
 
     PERIOD END BALANCES
     Total assets                                $1,463,751        $1,365,650
     Loans, net of unearned discount                449,345           489,838
     Allowance for credit losses                      5,756             5,417
     Investment securities-Held to
      Maturity (HTM)                                172,829           224,307
     Investment securities-Available for
      Sale (AFS)                                    691,888           493,076
     Deposits                                     1,313,530         1,241,018
     Shareholders' equity                           105,973            84,282
 
     AVERAGE BALANCES
     Total assets                                $1,488,714        $1,362,931
     Total investment securities                    823,888           738,074
     Total loans                                    462,266           491,356
     Total earning assets                         1,369,488         1,254,868
     Total deposits                               1,334,692         1,239,275
     Total paying liabilities                     1,127,338         1,031,114
     Total tangible equity                           84,574            61,621
     Total equity                                   104,553            82,693
 
     CAPITAL RATIOS:
     Leverage ratio                                   5.65%             5.63%
     Tier I risk-based capital                       12.90%            11.63%
     Total risk-based capital                        13.80%            12.46%
 
     (1)  Excludes for 2001:  $1,193 in merger-related expenses and $250 for
     the change in accounting principle.
 
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SOURCE Commercial Bank of New York
    NEW YORK, April 24 /PRNewswire Interactive News Release/ --
 Commercial Bank of New York (Nasdaq: CBNY) announced that net income for the
 first quarter of 2001, excluding $1,193,000 in merger-related charges and
 $250,000 booked as a cumulative effect of changes in accounting principles due
 to the adoption of SFAS 133 (Accounting for Derivatives), was $2,159,000, a
 decrease of 10% from $2,390,000 in the first quarter of 2000. Net income
 including these items was $716,000 in the first quarter of 2001.  Diluted
 earnings per share for the first quarter of 2001 excluding the charges were
 $0.41 versus $0.45 in the same period of 2000.  On February 13, 2001, North
 Fork Bank and Commercial Bank of New York announced an agreement to merge,
 subject to regulatory and shareholder approval.
     Diluted cash earnings(1) for the first quarter of 2001 excluding
 merger-related and the change in accounting principles charges were
 $2,475,000, or $0.47 per share, down 9% from the $2,720,000, or $0.51 per
 share, diluted cash earnings in the first quarter of 2000.
     Jacob Berman, President said, "The first quarter was extremely significant
 for Commercial Bank.  In February, we agreed to accept an offer of $32 per
 CBNY share to merge with North Fork Bank.  This transaction will enable our
 shareholders to realize the full value of their investment.  The transaction
 is subject to regulatory approval, and is anticipated to close in the third
 quarter of this year.  As a part of this transaction, CBNY Investment Services
 Corp. ("CBNYISC"), our newly-formed broker  / dealer subsidiary, will be spun
 off in a rights offering to CBNY shareholders."
     "During the first quarter, Commercial Bank continued to follow the path
 which proved successful in the past.  We remain committed to excellence in
 customer service, and to a conservative asset structure.  The 10% decline in
 net income is, to a large extent, attributable to lower loan outstandings and
 to the decrease in securities transaction fees from customers due to unsettled
 markets."
     Net interest income for the first quarter of 2001 was $10,912,000,
 compared to $10,924,000 in the first quarter of 2000.  The Bank's net interest
 margin for the first quarter of 2001 was 3.19%, down from 3.48% in the first
 quarter of 2000, and 3.35% in the fourth quarter of 2000.
     Management's analysis of the composition of the Bank's loan portfolio
 indicated that the level of the Allowance for Loan Losses continues to be
 adequate.  As of March 31, 2001, 32% of the Bank's loans were fully secured by
 cash, bank guarantees or marketable securities, 52% were secured by other
 collateral, and 16% were unsecured.  On March 31, 2001 the Allowance for Loan
 Losses was $5,756,000 and there were no non-accrual loans.
     Total noninterest income for the first quarter of 2001 was $3,921,000,
 compared to $3,904,000 in the first quarter of 2000.  An increase in customer
 service fees was offset by a decrease in income on trades for customers.
 Noninterest expenses, excluding the merger-related expenses, increased by
 $584,000, or 5% in the first quarter of 2001 to $11,429,000 from $10,845,000
 in the first quarter of 2000. The major factor was an increase in salaries and
 benefits of $431,000, or 9%.
     Total assets were $1.464 billion on March 31, 2001 compared to
 $1.366 billion on March 31, 2000.  Loans on March 31, 2001 were $449 million,
 or 30.7% of assets compared to $490 million on March 31, 2000.
     Total investment securities increased to $865 million on March 31, 2001
 compared to $834 million on December 31, 2000, reflecting the reinvestment of
 loan paydowns and a redeployment of short-term investments.  Investment
 securities were 55.3% of average assets in the first quarter of 2001, up from
 54.2% in the first quarter of 2000.
     Total deposits increased by 6% to $1.314 billion on March 31, 2001 from
 $1.241 billion on March 31, 2000.  The sum of deposits, assets under
 management, and custody assets was $2.101 billion on March 31, 2001, compared
 to $2.106 billion on March 31, 2000.
     As of March 31, 2001 the Bank's Leverage ratio, Tier I Risk-based Capital
 Ratio and Total Risk-based Capital Ratio were approximately 5.7%, 12.9% and
 13.8% respectively, compared to 5.6%, 11.6% and 12.5% respectively as of March
 31, 2000.
     Mr. Gabriel Safdie, Chairman, added, "I'm gratified that Commercial Bank's
 shareholders will be receiving good value for their investment once the merger
 with North Fork is completed.  Their trust and loyalty are being rewarded.  We
 have hopes that our broker / dealer will be successful in attracting and
 servicing a large number of our international customers."
 
     (1) Cash earnings adds back amortization of goodwill to net income
 
 
                            COMMERCIAL BANK OF NEW YORK
                  CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
                                  (in thousands)
 
                                                  March 31,         March 31,
                                                     2001              2000
                                                 (Unaudited)       (Unaudited)
     ASSETS:
     Cash and due from banks                        $29,052           $34,750
     Interest-bearing deposits in banks               2,668               347
     Investment securities:
         -Held to maturity - Fair value of
          $175,802, $219,566 respectively           172,829           224,307
         -Available for sale                        691,888           493,076
     Federal funds sold                              34,500            29,000
     Loans - net of unearned discount               449,345           489,838
     Allowance for possible loan losses              (5,756)           (5,417)
         Net loans                                  443,589           484,421
     Premises and equipment - net                    10,152            10,987
     Customers' acceptance liability                  3,040             5,255
     Accrued interest receivable                     11,731            11,574
     Goodwill                                        13,855            13,757
     Deferred tax assets                              9,894            21,087
     Accounts receivable                             38,283            33,985
     Other assets                                     2,270             3,104
         Total assets                            $1,463,751        $1,365,650
 
     LIABILITIES AND SHAREHOLDERS' EQUITY:
     Deposits:
       Noninterest-bearing
       (domestic offices)                          $210,909          $211,289
       Interest-bearing:
         Domestic offices                           825,852           795,781
         Foreign offices                            276,769           233,948
             Total deposits                       1,313,530         1,241,018
     Liability on acceptances                         3,040             5,255
     Accrued taxes and other expenses                 7,065             7,320
     Accrued interest payable                         4,955             4,180
     Other borrowed funds                             1,405             1,713
     Accounts payable                                24,660            21,242
     Other liabilities                                3,123               640
         Total liabilities                        1,357,778         1,281,368
     Total shareholders' equity before
      accumulated
         other comprehensive income (loss)          103,021            96,646
         Accumulated other comprehensive
          income (loss)                               2,952           (12,364)
         Total shareholders' equity                 105,973            84,282
         Total liabilities and
          shareholders' equity                   $1,463,751        $1,365,650
 
 
                            COMMERCIAL BANK OF NEW YORK
                       CONSOLIDATED STATEMENTS OF OPERATIONS
                     (in thousands except for per share data)
 
 
                                                            March 31,
                                                           (Unaudited)
                                                      2001              2000
     Interest income:
       Interest and fees on loans                   $10,040           $10,531
       Interest and dividends on
        investment securities                        13,293            11,627
       Interest on federal funds sold                   937               337
       Interest on deposits
        in financial institutions                       162                 9
         Total interest income                       24,432            22,504
     Interest expense:
       Interest on deposits                          13,479            11,532
       Interest on borrowings                            41                48
         Total interest expense                      13,520            11,580
 
     Net interest income                             10,912            10,924
      Provision for possible loan losses                120               120
     Net interest income after provision
       for possible loan losses                      10,792            10,804
     Noninterest income:
       Customer service fees                          2,655             2,532
       Net gains (losses) on proprietary
        securities and trading assets                     2                (1)
       Income on trades for customers                   412               555
       Net trading gains and fees from
        foreign exchange transactions                    74                88
       Other                                            778               730
         Total noninterest income                     3,921             3,904
     Noninterest expenses:
       Salaries and employee benefits                 5,151             4,720
       Net occupancy expense                          2,700             2,669
       Merger Related Expenses                        1,193                 -
       Other                                          3,578             3,456
         Total noninterest expenses                  12,622            10,845
 
     Income before provision for income
      taxes and cumulative effect of
      change in accounting principle                  2,091             3,863
     Provision for income taxes                       1,125             1,473
     Net income before cumulative effect
      of change in accounting principle                $966            $2,390
     Cumulative effect of change in
      accounting principle
      (after tax effect)                              (250)                -
     Net income                                        $716            $2,390
     Net income available to common
      shareholders                                     $716            $2,390
     Basic earnings per share                         $0.14             $0.45
     Diluted earnings per share                       $0.14             $0.45
     Average common shares outstanding            5,299,593         5,299,593
     Diluted average shares outstanding           5,299,593         5,299,593
 
 
                            COMMERCIAL BANK OF NEW YORK
                              SELECTED FINANCIAL DATA
 
                                                        Three months ended
                                                            March 31,
                                                           (Unaudited)
                                                     2001              2000
                                                      (Dollars in thousands,
                                                      except per share data)
 
     SUMMARY OF EARNINGS:
     Interest Income                                $24,432           $22,504
     Interest Expense                                13,520            11,580
     Net interest income                            $10,912           $10,924
     Provision for credit losses                        120               120
     Noninterest income                               3,921             3,904
     Noninterest expenses                            12,622            10,845
     Earnings before income taxes                     2,091             3,863
     Income taxes                                     1,125             1,473
     Net earnings before cumulative effect
      of change in accounting principle                 966             2,390
     Cumulative effect of change in
      accounting principle                             (250)              --
     Net earnings                                      $716            $2,390
 
     PER SHARE DATA:  (1)
     Net earnings-basic                               $0.41             $0.45
     Net earnings-diluted                             $0.41             $0.45
     Book value at period end                        $20.27            $15.90
     Book value at period end(excluding
      valuation allowances)                          $19.71            $18.24
     Weighted average common shares
      outstanding                                 5,299,593         5,299,593
     Diluted weighted average common
      shares outstanding                          5,299,593         5,299,593
 
     SELECTED PERFORMANCE RATIOS:  (1)
     Return on average assets                         0.58%             0.70%
     Return on average equity                         8.26%            11.56%
     Return on average tangible equity               10.21%            15.51%
     Net interest margin                              3.19%             3.48%
     Non-accrual assets                                  --             1,048
     Efficiency ratio excluding securities
      profits/(losses)                               77.06%            73.13%
     Noninterest expense to average total
      assets                                          3.07%             3.18%
 
     CASH EARNINGS DATA:  (1)
     Earnings                                        $2,475            $2,720
     Earnings per share                               $0.47             $0.51
     Return on average assets                         0.67%             0.80%
     Return on average equity                         9.47%            13.16%
     Return on average tangible equity               11.71%            17.66%
     Efficiency ratio excluding securities
      profits/(losses)                               74.93%            70.91%
 
     PERIOD END BALANCES
     Total assets                                $1,463,751        $1,365,650
     Loans, net of unearned discount                449,345           489,838
     Allowance for credit losses                      5,756             5,417
     Investment securities-Held to
      Maturity (HTM)                                172,829           224,307
     Investment securities-Available for
      Sale (AFS)                                    691,888           493,076
     Deposits                                     1,313,530         1,241,018
     Shareholders' equity                           105,973            84,282
 
     AVERAGE BALANCES
     Total assets                                $1,488,714        $1,362,931
     Total investment securities                    823,888           738,074
     Total loans                                    462,266           491,356
     Total earning assets                         1,369,488         1,254,868
     Total deposits                               1,334,692         1,239,275
     Total paying liabilities                     1,127,338         1,031,114
     Total tangible equity                           84,574            61,621
     Total equity                                   104,553            82,693
 
     CAPITAL RATIOS:
     Leverage ratio                                   5.65%             5.63%
     Tier I risk-based capital                       12.90%            11.63%
     Total risk-based capital                        13.80%            12.46%
 
     (1)  Excludes for 2001:  $1,193 in merger-related expenses and $250 for
     the change in accounting principle.
 
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 SOURCE  Commercial Bank of New York