Warwick Community Bancorp, Inc. Announces 9.5% Increase In First Quarter Earnings Per Share

Apr 30, 2001, 01:00 ET from Warwick Community Bancorp, Inc.

    WARWICK, N.Y., April 30 /PRNewswire/ -- Warwick Community Bancorp, Inc.
 (the "Company")  (Nasdaq:   WSBI), the holding company for The Warwick Savings
 Bank ("Warwick Savings") and The Towne Center Bank ("Towne Center"), today
 reported earnings per share of $.23 for the quarter ended March 31, 2001, an
 increase of $.02, or 9.5%, as compared to $.21 reported for the quarter ended
 March 31, 2000.
     Net income for the quarter ended March 31, 2001 totaled $1.1 million,
 which represented an increase of  $26 thousand, or 2.4%, over the net income
 earned for the same quarter ended one year earlier.
     Commenting on the Company's performance, Timothy A. Dempsey, Chairman of
 the Board and Chief Executive Officer, noted, "During this quarter the Company
 completed its two latest endeavors that we believe will enhance the
 franchise's long-term value.  We completed our previously announced exit from
 the mortgage loan servicing business, which will result in notable cost
 savings, and we acquired Hardenburgh Abstract Company of Orange County, Inc.,
 a title insurance company.  Our diversification into the title insurance
 business is a natural complement to our mortgage loan origination operation
 and represents a significant new source of fee income.  Moreover, given the
 relatively recent reductions in interest rates, and their resultant stimulus
 on the demand for both new and refinanced home mortgage loans, the acquisition
 was completed at a very opportune time.  We have also improved the Company's
 efficiency ratio and are continuing to take steps to improve it further."
 
     Interest Income
     The Company's total interest income for the quarter ended March 31, 2001
 grew by $921 thousand, or 8.7%, to $11.5 million as compared to the comparable
 quarter ended one year earlier.  The increase was primarily attributable to
 increases in the average balances of the Company's earning assets.  Interest
 income earned on mortgage loans increased by $1.1 million, or 19.9%, to
  $6.3 million for the quarter ended March 31, 2001.  Interest earned on
 consumer and commercial loans grew by 32.4% to $2.3 million for the quarter
 ended March 31, 2001, as compared to $1.8 million for the comparable quarter
 one year earlier.  Interest earned by the investment securities portfolio
 decreased $689 thousand, or 19.3%, to $2.9 million from $3.6 million for the
 quarter ended March 31,2000.
 
     Interest Expense
     Interest expense for the first quarter 2001 increased by $562 thousand, or
 9.6%, to $6.4 million, as compared to the same quarter in 2000.  The increase
 was primarily attributable to an increase in deposit balances at higher
 interest rates associated with funding the growth of the Company's earning
 assets.  Total deposit balances increased $10.1 million, or 2.9%, from
 $350.6 million at December 31, 2000 to $360.7 million at March 31, 2001.
 Interest expense on deposits for the quarter ended March 31, 2001 totaled
 $3.3 million, an increase of $900 thousand, or 37.8%, as compared to deposit
 interest expense of $2.4 million for the same quarter in 2000.  Increases in
 total deposit balances enabled the Company to reduce the amount of borrowed
 funds.  As a result, interest expense on borrowed funds decreased by
 $338 thousand, or 9.7%, to $3.1 million for the quarter ended March 31, 2001,
 from $3.5 million for the comparable quarter ended one year earlier.
 
     Non-Interest Income
     For the quarter ended March 31, 2001, the Company's non-interest income,
 net, increased by $144 thousand, or 12.9%, to $1.3 million as compared to the
 same quarter in 2000.  The increase resulted primarily from a $108 thousand
 increase in gains derived from the sale of loans, and a $110 thousand gain on
 the sale of mortgage servicing rights.  Those transactions were in conjunction
 with the Company's previously announced decision to exit the mortgage loan
 servicing business.
     Other income earned during the quarter ended March 31, 2001 amounted to
 $189 thousand as compared to $270 thousand for the same quarter ended one year
 earlier.  The difference of $81 thousand was primarily attributable to the
 recovery during the first three months of 2000 of previously recognized
 unrealized losses on mortgage loans held-for-sale.
     The increase in non-interest income was also supported by a 3.3% increase
 in service and fee income that increased by $27 thousand to $833 thousand
 earned in the quarter ended March 31, 2001 as compared to $806 thousand earned
 in the same quarter ended one year earlier.
 
     Non-interest Expense
     Non-interest expense for the quarter ended March 31, 2001 increased
 $381 thousand to $4.5 million, as compared to the 2000 comparable quarter.
 This increase included an increase of $156 thousand in salaries and employee
 benefits, which was attributable to increased levels of compensation necessary
 to attract and retain the Company's existing staff, as well as to the
 additional expense associated with the Company's acquisition of Hardenburgh
 Abstract Company of Orange County, Inc.
     Occupancy expense increased $56 thousand to $539 thousand for the quarter
 ended March 31, 2001 as compared to $483 thousand for the quarter ended March
 31, 2000.  The increase resulted from the opening of the second Towne Center
 branch in Moonachie, New Jersey during the quarter ended December 31, 2000,
 and from the aforementioned purchase of the Hardenburgh Abstract Company of
 Orange County, Inc.  For the quarter ended March 31, 2001, data processing
 expense declined $55 thousand to $254 thousand, and expense for professional
 fees declined $44 thousand to $123 thousand.
     Other expense, related to enhancing the Company's revenue production,
 increased by $298 thousand for the first quarter of 2001 as compared to the
 first quarter of 2000.  The increase was primarily the result of non-recurring
 charges associated with exiting the mortgage loan servicing business.
 
     Provision for Income Taxes
     As a result of an increase in the Company's total net income before income
 taxes, the provision for income taxes increased by $47 thousand for the
 quarter ended March 31, 2001 as compared to the same quarter in 2000.
 
     Financial Condition
     At March 31, 2001, the Company's total assets amounted to $688.1 million,
 which included net loans of $446.7 million, and securities, comprised
 primarily of U.S. government and agency notes, plus GNMA, FNMA and FHLMC
 mortgage-backed securities, that totaled $182.1 million.  The increase in
 total assets of $50.3 million, or 7.9%, from December 31, 2000 was primarily
 due to growth of $14.5 million, or 3.3%, in total loans, net, and a
 $32.6 million, or 21.8%, increase in total securities.  The increase in the
 Company's securities portfolio resulted from a number of wholesale leverage
 transactions that the Company entered into late in the quarter ended March 31,
 2001, which the Company believes will subsequently bolster net interest income
 going forward.
     Other assets totaled $10.0 million at March 31, 2001 as compared to
 $6.0 million at December 31, 2000.  The $4.0 million increase was primarily
 attributable to $3.8 million in mortgage loans closed at, and in transit from,
 various attorneys' offices at the end of the quarter.
     The Company's asset growth, particularly the wholesale leverage
 transactions mentioned above, was funded primarily by advances provided by the
 Federal Home Loan Bank of New York and by the increase in deposit balances.
 From December 31, 2000 to March 31, 2001, Federal Home Loan Bank advances and
 deposit balances increased to $227.2 million and $358.2 million, respectively,
 from $188.8 million and $348.1 million, respectively.
 Moreover, in addition to supporting the Company's asset growth, funds provided
 from these sources enabled the Company to acquire additional treasury stock.
 During the quarter ended March 31, 2001, the Company repurchased an additional
 158,500 shares of its outstanding common stock in open market transactions.
 These purchases increased the number of treasury stock shares from 1,273,472
 at December 31, 1000, to 1,431,972 at March 31, 2001.
 
     Asset Quality
     The Company's asset quality, as measured by the ratio of non-performing
 loans to total loans, remained strong, as the ratio increased slightly from
 0.28% at December 31, 2000, to 0.33% at March 31, 2001.  Over the same time
 period the ratio of non-performing assets to total assets also increased
 slightly to 0.40% from 0.39%.  Additionally, in recognition of the Company's
 continued strong loan growth, the provision for loan loss was increased by
 $49 thousand to $235 thousand during the quarter ended March 31, 2001 as
 compared to $186 thousand for the comparable quarter one year earlier.  The
 increase in the provision helped improve the Company's allowance for loan
 losses to total loans ratio to 0.65% for the three months ended March 31,
 2001, from 0.63% for the three months ended March 31, 2000.
     At March 31, 2001, Warwick Savings and Towne Center exceeded all of the
 regulatory capital requirements of their primary federal regulator, the FDIC.
 Warwick Savings had a leverage capital ratio of 8.82% and a total risk-based
 capital ratio of 16.00%, while the same capital and risk-based capital ratios
 for Towne Center were 26.99% and 43.09%, respectively.  These capital ratios
 are well in excess of the FDIC requirements of 4% and 8%, respectively, and
 qualify Warwick Savings and Towne Center to be designated as well-capitalized
 institutions by the bank regulatory agencies. The Company had a leverage
 capital ratio of 11.38% and a total risk-based capital ratio of 19.46% at
 March 31, 2001.  The Company's capital ratios are well in excess of the
 guidelines established by the Federal Reserve Board.
 
     This press release contains certain forward-looking statements with
 respect to the financial condition, results of operations and business of the
 Company that are subject to various factors that could cause actual results to
 differ materially from the estimates made in the forward-looking statements.
 Such factors include interest rates, general, economic and market conditions
 and customer preferences.
 
     Warwick Community Bancorp, Inc. is the holding company for The Warwick
 Savings Bank, a New York state chartered stock savings bank, and The Towne
 Center Bank, a New Jersey state chartered commercial bank.  The Warwick
 Savings Bank was originally founded in 1875 and is a community-oriented
 savings institution offering a variety of financial services to meet the needs
 of the communities it serves.  The Towne Center Bank was founded in 1999.  The
 Warwick Savings Bank maintains its headquarters in the village of Warwick in
 Orange County, New York and operates additional branches in the village of
 Monroe, the town of Woodbury, the town of Newburgh and the town of Wallkill,
 Orange County, New York.  The Towne Center Bank is headquartered in the town
 of Lodi, in Bergen County, New Jersey and operates an additional branch in the
 borough of Moonachie, in Bergen county, New Jersey.  Both banks' deposits are
 insured up to the maximum allowable amount by the Bank Insurance Fund of the
 FDIC.
 
                WARWICK COMMUNITY BANCORP, INC. and SUBSIDIARIES
                     CONSOLIDATED STATEMENTS OF OPERATIONS
                                  (Unaudited)
 
                                                       For the three months
                                                          ended March 31,
                                                    2001               2000
                                                     (Dollars In Thousands)
     Interest Income:
         Interest on mortgage loans                  6,333               5,283
         Interest on other loans                     2,321               1,753
         Interest and dividends on securities        2,881               3,570
         Interest on federal funds sold                  0                  13
         Interest on short-term money
          market instruments                            14                   9
                   Total interest income            11,549              10,628
 
     Interest Expense:
               Time deposits                         1,727               1,193
               Money market deposits                   744                 502
               Savings deposits                        793                 665
               Mortgagors' escrow deposits              20                  24
               Borrowed funds                        3,135               3,473
                   Total interest expense            6,419               5,857
                    Net interest income              5,130               4,771
 
     Provision for Loan Losses                        (235)               (186)
       Net interest income after
        provision for loan losses                     4,895               4,585
 
     Non-Interest Income:
               Service and fee income                  833                 806
               Gain (loss) on securities transactions    0                  20
               Net gain on sale of loans               129                  21
               Gain on sale of mortgage
                servicing rights                       110                 -
               Other income                            189                 270
                  Total non-interest income, net     1,261               1,117
 
     Non-Interest Expense:
               Salaries and employee benefits        2,473               2,317
               FDIC insurance                           18                  15
               Occupancy                               539                 483
               Data processing                         254                 309
               Advertising                              33                  66
               Professional fees                       123                 167
               Other                                 1,060                 762
                  Total non-interest expense         4,500               4,119
                  Income before provision for
                   income taxes                      1,656               1,583
 
     Provision for Income Taxes                        568                 521
 
               Net Income                            1,088               1,062
               Earnings per Share:
                  Basic                              $0.23               $0.21
                  Diluted                            $0.23               $0.21
                  Cash                               $0.29               $0.28
 
 
                WARWICK COMMUNITY BANCORP, INC. and SUBSIDIARIES
                     SELECTED CONSOLIDATED FINANCIAL RATIOS
 
                                                         At or for the
                                                         Three Months
                                                         Ended March 31,
                                                      2001              2000
                                                            (Unaudited)
     Selected Financial Ratios and Other
      Data (1):
     Performance Ratios:
          Return on average assets                    0.67%             0.70%
          Return on average equity                    5.91%             6.51%
          Average equity to average assets           11.37%            10.79%
          Retained earnings to total assets          10.65%            10.31%
          Core deposits to total deposits            68.15%            69.47%
          Net interest spread (2)                     2.76%             2.87%
          Net interest margin (3)                     3.39%             3.40%
         Operating expense to average assets(1)(2)    2.78%             2.73%
          Efficiency ratio (1)(2)(4)                 66.96%            69.48%
 
     Common Share Data:
          Book Value (period end) (5)                $15.55            $13.37
          Common shares outstanding               4,714,097         4,820,871
 
                                                 At March 31,   At December 31,
                                                    2001              2000
                                                 (Unaudited)
     Asset Quality Ratios (1):
          Non - performing loans to total loans       0.33%             0.28%
          Non - performing loans to total assets      0.22%             0.19%
          Non - performing assets to total assets     0.40%             0.39%
          Allowance for loan losses to total loans    0.65%             0.63%
          Allowance for loan losses to
           non - performing loans                   194.15%           219.69%
 
     Regulatory Capital Ratios (1):
     Warwick Savings:
         Tier I capital to average assets             8.82%             8.68%
         Tier I capital to risk-weighted assets      15.26%            16.33%
         Total capital to risk-weighted assets       16.00%            17.16%
 
     Towne Center:
         Tier I capital to average assets            26.99%            36.35%
         Tier I capital to risk-weighted assets      42.10%            50.83%
         Total capital to risk-weighted assets       43.09%            51.72%
 
     Company:
         Tier I capital to average assets            11.38%            11.76%
         Tier I capital to risk-weighted assets      18.72%            20.81%
         Total capital to risk-weighted assets       19.46%            21.63%
 
     (1) With the exception of end of period ratios, all ratios are based on
         average monthly balances during the indicated periods and are
         annualized where appropriate.  Regulatory Capital Ratios and Asset
         Quality Ratios are end of period ratios.
     (2) The net interest spread represents the difference between the weighted
         average yield on interest-earning assets and the weighted average
         cost of interest-bearing liabilities.
     (3) The net interest margin represents net interest income as a percent of
         average interest-earnings assets.
     (4) The efficiency ratio represents non-interest expense, excluding
         nonrecurring items and amortization of intangibles as a percentage of
         the sum of net interest income and non-interest income excluding any
         gains or losses on sales of assets.
     (5) Book Value represents total stockholders' equity divided by the shares
         outstanding for the period.
 
 
                WARWICK COMMUNITY BANCORP, INC. and SUBSIDIARIES
                            STATEMENTS OF CONDITION
                                  (Unaudited)
 
                      ASSETS                March 31, 2001   December 31, 2000
 
                                                    (Dollars in thousands)
     ASSETS:
        Cash on hand and due from banks           $14,459             $15,236
        Securities:
           Available-for-sale, at fair value      178,189             145,818
           Held-to-maturity, at amortized cost
            (fair value $3,970 in 2001
              and $3,715 in 2000)                   3,926               3,695
                          Total securities        182,115             149,513
 
        Mortgage loans                            334,708             334,090
        Commercial loans                           79,956              69,921
        Consumer loans                             34,926              30,909
          Total loans                             449,590             434,920
        Allowance for loan losses                  (2,920)             (2,722)
          Total loans, net                        446,670             432,198
 
        Accrued interest receivable                 3,390               3,359
        Federal Home Loan Bank stock               13,252              13,252
        Bank premises & equipment, net              7,482               7,620
        Bank owned life insurance                  10,806              10,638
        Other assets                                9,967               5,983
          Total assets                           $688,141            $637,799
 
         LIABILITIES AND STOCKHOLDERS' EQUITY
     LIABILITIES
        Depositor accounts                       $358,216            $348,131
        Mortgage escrow funds                       2,514               2,452
        Accrued interest payable                    1,556               1,452
        Securities sold under
         agreements to repurchase                  16,845              16,845
        Federal Home Loan Bank advances           227,231             188,800
        Other liabilities                           8,479               7,538
           Total liabilities                      614,841             565,218
 
     STOCKHOLDERS' EQUITY:
        Preferred stock, $.01 par value; 5,000,000
           authorized; none issued                     --                  --
        Common stock, $.01 par value;
          15,000,000 shares
          authorized; 6,606,548 shares issued;
          5,174,576 and 5,333,076 shares outstanding
          as of March 31, 2001
          and December 31, 2000, respectively          66                  66
        Additional paid-in capital                 63,053              63,039
        Retained earnings-subject to restrictions  36,379              35,774
        Accumulated other comprehensive
         income(loss), net                           (283)             (2,508)
           Less- Unallocated common stock
            held by ESOP                           (5,515)             (5,720)
           Less- Unearned common stock
            held by RRP                            (2,295)             (2,371)
                                                   91,405              88,280
        Treasury stock (1,431,972 shares
         and 1,273,472 shares at
           March 31, 2001 and December 31,
            2000, respectively)                   (18,105)            (15,699)
               Total stockholders' equity          73,300              72,581
               Total liabilities and
                stockholders' equity             $688,141            $637,799
 
 
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SOURCE Warwick Community Bancorp, Inc.
    WARWICK, N.Y., April 30 /PRNewswire/ -- Warwick Community Bancorp, Inc.
 (the "Company")  (Nasdaq:   WSBI), the holding company for The Warwick Savings
 Bank ("Warwick Savings") and The Towne Center Bank ("Towne Center"), today
 reported earnings per share of $.23 for the quarter ended March 31, 2001, an
 increase of $.02, or 9.5%, as compared to $.21 reported for the quarter ended
 March 31, 2000.
     Net income for the quarter ended March 31, 2001 totaled $1.1 million,
 which represented an increase of  $26 thousand, or 2.4%, over the net income
 earned for the same quarter ended one year earlier.
     Commenting on the Company's performance, Timothy A. Dempsey, Chairman of
 the Board and Chief Executive Officer, noted, "During this quarter the Company
 completed its two latest endeavors that we believe will enhance the
 franchise's long-term value.  We completed our previously announced exit from
 the mortgage loan servicing business, which will result in notable cost
 savings, and we acquired Hardenburgh Abstract Company of Orange County, Inc.,
 a title insurance company.  Our diversification into the title insurance
 business is a natural complement to our mortgage loan origination operation
 and represents a significant new source of fee income.  Moreover, given the
 relatively recent reductions in interest rates, and their resultant stimulus
 on the demand for both new and refinanced home mortgage loans, the acquisition
 was completed at a very opportune time.  We have also improved the Company's
 efficiency ratio and are continuing to take steps to improve it further."
 
     Interest Income
     The Company's total interest income for the quarter ended March 31, 2001
 grew by $921 thousand, or 8.7%, to $11.5 million as compared to the comparable
 quarter ended one year earlier.  The increase was primarily attributable to
 increases in the average balances of the Company's earning assets.  Interest
 income earned on mortgage loans increased by $1.1 million, or 19.9%, to
  $6.3 million for the quarter ended March 31, 2001.  Interest earned on
 consumer and commercial loans grew by 32.4% to $2.3 million for the quarter
 ended March 31, 2001, as compared to $1.8 million for the comparable quarter
 one year earlier.  Interest earned by the investment securities portfolio
 decreased $689 thousand, or 19.3%, to $2.9 million from $3.6 million for the
 quarter ended March 31,2000.
 
     Interest Expense
     Interest expense for the first quarter 2001 increased by $562 thousand, or
 9.6%, to $6.4 million, as compared to the same quarter in 2000.  The increase
 was primarily attributable to an increase in deposit balances at higher
 interest rates associated with funding the growth of the Company's earning
 assets.  Total deposit balances increased $10.1 million, or 2.9%, from
 $350.6 million at December 31, 2000 to $360.7 million at March 31, 2001.
 Interest expense on deposits for the quarter ended March 31, 2001 totaled
 $3.3 million, an increase of $900 thousand, or 37.8%, as compared to deposit
 interest expense of $2.4 million for the same quarter in 2000.  Increases in
 total deposit balances enabled the Company to reduce the amount of borrowed
 funds.  As a result, interest expense on borrowed funds decreased by
 $338 thousand, or 9.7%, to $3.1 million for the quarter ended March 31, 2001,
 from $3.5 million for the comparable quarter ended one year earlier.
 
     Non-Interest Income
     For the quarter ended March 31, 2001, the Company's non-interest income,
 net, increased by $144 thousand, or 12.9%, to $1.3 million as compared to the
 same quarter in 2000.  The increase resulted primarily from a $108 thousand
 increase in gains derived from the sale of loans, and a $110 thousand gain on
 the sale of mortgage servicing rights.  Those transactions were in conjunction
 with the Company's previously announced decision to exit the mortgage loan
 servicing business.
     Other income earned during the quarter ended March 31, 2001 amounted to
 $189 thousand as compared to $270 thousand for the same quarter ended one year
 earlier.  The difference of $81 thousand was primarily attributable to the
 recovery during the first three months of 2000 of previously recognized
 unrealized losses on mortgage loans held-for-sale.
     The increase in non-interest income was also supported by a 3.3% increase
 in service and fee income that increased by $27 thousand to $833 thousand
 earned in the quarter ended March 31, 2001 as compared to $806 thousand earned
 in the same quarter ended one year earlier.
 
     Non-interest Expense
     Non-interest expense for the quarter ended March 31, 2001 increased
 $381 thousand to $4.5 million, as compared to the 2000 comparable quarter.
 This increase included an increase of $156 thousand in salaries and employee
 benefits, which was attributable to increased levels of compensation necessary
 to attract and retain the Company's existing staff, as well as to the
 additional expense associated with the Company's acquisition of Hardenburgh
 Abstract Company of Orange County, Inc.
     Occupancy expense increased $56 thousand to $539 thousand for the quarter
 ended March 31, 2001 as compared to $483 thousand for the quarter ended March
 31, 2000.  The increase resulted from the opening of the second Towne Center
 branch in Moonachie, New Jersey during the quarter ended December 31, 2000,
 and from the aforementioned purchase of the Hardenburgh Abstract Company of
 Orange County, Inc.  For the quarter ended March 31, 2001, data processing
 expense declined $55 thousand to $254 thousand, and expense for professional
 fees declined $44 thousand to $123 thousand.
     Other expense, related to enhancing the Company's revenue production,
 increased by $298 thousand for the first quarter of 2001 as compared to the
 first quarter of 2000.  The increase was primarily the result of non-recurring
 charges associated with exiting the mortgage loan servicing business.
 
     Provision for Income Taxes
     As a result of an increase in the Company's total net income before income
 taxes, the provision for income taxes increased by $47 thousand for the
 quarter ended March 31, 2001 as compared to the same quarter in 2000.
 
     Financial Condition
     At March 31, 2001, the Company's total assets amounted to $688.1 million,
 which included net loans of $446.7 million, and securities, comprised
 primarily of U.S. government and agency notes, plus GNMA, FNMA and FHLMC
 mortgage-backed securities, that totaled $182.1 million.  The increase in
 total assets of $50.3 million, or 7.9%, from December 31, 2000 was primarily
 due to growth of $14.5 million, or 3.3%, in total loans, net, and a
 $32.6 million, or 21.8%, increase in total securities.  The increase in the
 Company's securities portfolio resulted from a number of wholesale leverage
 transactions that the Company entered into late in the quarter ended March 31,
 2001, which the Company believes will subsequently bolster net interest income
 going forward.
     Other assets totaled $10.0 million at March 31, 2001 as compared to
 $6.0 million at December 31, 2000.  The $4.0 million increase was primarily
 attributable to $3.8 million in mortgage loans closed at, and in transit from,
 various attorneys' offices at the end of the quarter.
     The Company's asset growth, particularly the wholesale leverage
 transactions mentioned above, was funded primarily by advances provided by the
 Federal Home Loan Bank of New York and by the increase in deposit balances.
 From December 31, 2000 to March 31, 2001, Federal Home Loan Bank advances and
 deposit balances increased to $227.2 million and $358.2 million, respectively,
 from $188.8 million and $348.1 million, respectively.
 Moreover, in addition to supporting the Company's asset growth, funds provided
 from these sources enabled the Company to acquire additional treasury stock.
 During the quarter ended March 31, 2001, the Company repurchased an additional
 158,500 shares of its outstanding common stock in open market transactions.
 These purchases increased the number of treasury stock shares from 1,273,472
 at December 31, 1000, to 1,431,972 at March 31, 2001.
 
     Asset Quality
     The Company's asset quality, as measured by the ratio of non-performing
 loans to total loans, remained strong, as the ratio increased slightly from
 0.28% at December 31, 2000, to 0.33% at March 31, 2001.  Over the same time
 period the ratio of non-performing assets to total assets also increased
 slightly to 0.40% from 0.39%.  Additionally, in recognition of the Company's
 continued strong loan growth, the provision for loan loss was increased by
 $49 thousand to $235 thousand during the quarter ended March 31, 2001 as
 compared to $186 thousand for the comparable quarter one year earlier.  The
 increase in the provision helped improve the Company's allowance for loan
 losses to total loans ratio to 0.65% for the three months ended March 31,
 2001, from 0.63% for the three months ended March 31, 2000.
     At March 31, 2001, Warwick Savings and Towne Center exceeded all of the
 regulatory capital requirements of their primary federal regulator, the FDIC.
 Warwick Savings had a leverage capital ratio of 8.82% and a total risk-based
 capital ratio of 16.00%, while the same capital and risk-based capital ratios
 for Towne Center were 26.99% and 43.09%, respectively.  These capital ratios
 are well in excess of the FDIC requirements of 4% and 8%, respectively, and
 qualify Warwick Savings and Towne Center to be designated as well-capitalized
 institutions by the bank regulatory agencies. The Company had a leverage
 capital ratio of 11.38% and a total risk-based capital ratio of 19.46% at
 March 31, 2001.  The Company's capital ratios are well in excess of the
 guidelines established by the Federal Reserve Board.
 
     This press release contains certain forward-looking statements with
 respect to the financial condition, results of operations and business of the
 Company that are subject to various factors that could cause actual results to
 differ materially from the estimates made in the forward-looking statements.
 Such factors include interest rates, general, economic and market conditions
 and customer preferences.
 
     Warwick Community Bancorp, Inc. is the holding company for The Warwick
 Savings Bank, a New York state chartered stock savings bank, and The Towne
 Center Bank, a New Jersey state chartered commercial bank.  The Warwick
 Savings Bank was originally founded in 1875 and is a community-oriented
 savings institution offering a variety of financial services to meet the needs
 of the communities it serves.  The Towne Center Bank was founded in 1999.  The
 Warwick Savings Bank maintains its headquarters in the village of Warwick in
 Orange County, New York and operates additional branches in the village of
 Monroe, the town of Woodbury, the town of Newburgh and the town of Wallkill,
 Orange County, New York.  The Towne Center Bank is headquartered in the town
 of Lodi, in Bergen County, New Jersey and operates an additional branch in the
 borough of Moonachie, in Bergen county, New Jersey.  Both banks' deposits are
 insured up to the maximum allowable amount by the Bank Insurance Fund of the
 FDIC.
 
                WARWICK COMMUNITY BANCORP, INC. and SUBSIDIARIES
                     CONSOLIDATED STATEMENTS OF OPERATIONS
                                  (Unaudited)
 
                                                       For the three months
                                                          ended March 31,
                                                    2001               2000
                                                     (Dollars In Thousands)
     Interest Income:
         Interest on mortgage loans                  6,333               5,283
         Interest on other loans                     2,321               1,753
         Interest and dividends on securities        2,881               3,570
         Interest on federal funds sold                  0                  13
         Interest on short-term money
          market instruments                            14                   9
                   Total interest income            11,549              10,628
 
     Interest Expense:
               Time deposits                         1,727               1,193
               Money market deposits                   744                 502
               Savings deposits                        793                 665
               Mortgagors' escrow deposits              20                  24
               Borrowed funds                        3,135               3,473
                   Total interest expense            6,419               5,857
                    Net interest income              5,130               4,771
 
     Provision for Loan Losses                        (235)               (186)
       Net interest income after
        provision for loan losses                     4,895               4,585
 
     Non-Interest Income:
               Service and fee income                  833                 806
               Gain (loss) on securities transactions    0                  20
               Net gain on sale of loans               129                  21
               Gain on sale of mortgage
                servicing rights                       110                 -
               Other income                            189                 270
                  Total non-interest income, net     1,261               1,117
 
     Non-Interest Expense:
               Salaries and employee benefits        2,473               2,317
               FDIC insurance                           18                  15
               Occupancy                               539                 483
               Data processing                         254                 309
               Advertising                              33                  66
               Professional fees                       123                 167
               Other                                 1,060                 762
                  Total non-interest expense         4,500               4,119
                  Income before provision for
                   income taxes                      1,656               1,583
 
     Provision for Income Taxes                        568                 521
 
               Net Income                            1,088               1,062
               Earnings per Share:
                  Basic                              $0.23               $0.21
                  Diluted                            $0.23               $0.21
                  Cash                               $0.29               $0.28
 
 
                WARWICK COMMUNITY BANCORP, INC. and SUBSIDIARIES
                     SELECTED CONSOLIDATED FINANCIAL RATIOS
 
                                                         At or for the
                                                         Three Months
                                                         Ended March 31,
                                                      2001              2000
                                                            (Unaudited)
     Selected Financial Ratios and Other
      Data (1):
     Performance Ratios:
          Return on average assets                    0.67%             0.70%
          Return on average equity                    5.91%             6.51%
          Average equity to average assets           11.37%            10.79%
          Retained earnings to total assets          10.65%            10.31%
          Core deposits to total deposits            68.15%            69.47%
          Net interest spread (2)                     2.76%             2.87%
          Net interest margin (3)                     3.39%             3.40%
         Operating expense to average assets(1)(2)    2.78%             2.73%
          Efficiency ratio (1)(2)(4)                 66.96%            69.48%
 
     Common Share Data:
          Book Value (period end) (5)                $15.55            $13.37
          Common shares outstanding               4,714,097         4,820,871
 
                                                 At March 31,   At December 31,
                                                    2001              2000
                                                 (Unaudited)
     Asset Quality Ratios (1):
          Non - performing loans to total loans       0.33%             0.28%
          Non - performing loans to total assets      0.22%             0.19%
          Non - performing assets to total assets     0.40%             0.39%
          Allowance for loan losses to total loans    0.65%             0.63%
          Allowance for loan losses to
           non - performing loans                   194.15%           219.69%
 
     Regulatory Capital Ratios (1):
     Warwick Savings:
         Tier I capital to average assets             8.82%             8.68%
         Tier I capital to risk-weighted assets      15.26%            16.33%
         Total capital to risk-weighted assets       16.00%            17.16%
 
     Towne Center:
         Tier I capital to average assets            26.99%            36.35%
         Tier I capital to risk-weighted assets      42.10%            50.83%
         Total capital to risk-weighted assets       43.09%            51.72%
 
     Company:
         Tier I capital to average assets            11.38%            11.76%
         Tier I capital to risk-weighted assets      18.72%            20.81%
         Total capital to risk-weighted assets       19.46%            21.63%
 
     (1) With the exception of end of period ratios, all ratios are based on
         average monthly balances during the indicated periods and are
         annualized where appropriate.  Regulatory Capital Ratios and Asset
         Quality Ratios are end of period ratios.
     (2) The net interest spread represents the difference between the weighted
         average yield on interest-earning assets and the weighted average
         cost of interest-bearing liabilities.
     (3) The net interest margin represents net interest income as a percent of
         average interest-earnings assets.
     (4) The efficiency ratio represents non-interest expense, excluding
         nonrecurring items and amortization of intangibles as a percentage of
         the sum of net interest income and non-interest income excluding any
         gains or losses on sales of assets.
     (5) Book Value represents total stockholders' equity divided by the shares
         outstanding for the period.
 
 
                WARWICK COMMUNITY BANCORP, INC. and SUBSIDIARIES
                            STATEMENTS OF CONDITION
                                  (Unaudited)
 
                      ASSETS                March 31, 2001   December 31, 2000
 
                                                    (Dollars in thousands)
     ASSETS:
        Cash on hand and due from banks           $14,459             $15,236
        Securities:
           Available-for-sale, at fair value      178,189             145,818
           Held-to-maturity, at amortized cost
            (fair value $3,970 in 2001
              and $3,715 in 2000)                   3,926               3,695
                          Total securities        182,115             149,513
 
        Mortgage loans                            334,708             334,090
        Commercial loans                           79,956              69,921
        Consumer loans                             34,926              30,909
          Total loans                             449,590             434,920
        Allowance for loan losses                  (2,920)             (2,722)
          Total loans, net                        446,670             432,198
 
        Accrued interest receivable                 3,390               3,359
        Federal Home Loan Bank stock               13,252              13,252
        Bank premises & equipment, net              7,482               7,620
        Bank owned life insurance                  10,806              10,638
        Other assets                                9,967               5,983
          Total assets                           $688,141            $637,799
 
         LIABILITIES AND STOCKHOLDERS' EQUITY
     LIABILITIES
        Depositor accounts                       $358,216            $348,131
        Mortgage escrow funds                       2,514               2,452
        Accrued interest payable                    1,556               1,452
        Securities sold under
         agreements to repurchase                  16,845              16,845
        Federal Home Loan Bank advances           227,231             188,800
        Other liabilities                           8,479               7,538
           Total liabilities                      614,841             565,218
 
     STOCKHOLDERS' EQUITY:
        Preferred stock, $.01 par value; 5,000,000
           authorized; none issued                     --                  --
        Common stock, $.01 par value;
          15,000,000 shares
          authorized; 6,606,548 shares issued;
          5,174,576 and 5,333,076 shares outstanding
          as of March 31, 2001
          and December 31, 2000, respectively          66                  66
        Additional paid-in capital                 63,053              63,039
        Retained earnings-subject to restrictions  36,379              35,774
        Accumulated other comprehensive
         income(loss), net                           (283)             (2,508)
           Less- Unallocated common stock
            held by ESOP                           (5,515)             (5,720)
           Less- Unearned common stock
            held by RRP                            (2,295)             (2,371)
                                                   91,405              88,280
        Treasury stock (1,431,972 shares
         and 1,273,472 shares at
           March 31, 2001 and December 31,
            2000, respectively)                   (18,105)            (15,699)
               Total stockholders' equity          73,300              72,581
               Total liabilities and
                stockholders' equity             $688,141            $637,799
 
 
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 SOURCE  Warwick Community Bancorp, Inc.