BROOKLYN, N.Y., Jan. 30 /PRNewswire-FirstCall/ -- Brooklyn Federal
Bancorp, Inc. (the "Company") (Nasdaq: BFSB), the parent company of Brooklyn
Federal Savings Bank (the "Bank"), today reported net income of $1.2 million
for the quarter ended December 31, 2007 compared to $1.7 million for the
quarter ended December 31, 2006. The Company also reported basic and diluted
earnings per common share of $0.09 for the quarter ended December 31, 2007
compared to basic and diluted earnings per share of $0.13 for the quarter
ended December 31, 2006.
In addition, on January 15, 2008 the Company's Board of Directors approved
a cash dividend of $0.07 per share of common stock, which represents a 40.0%
increase, or $0.02, from the Company's most recent dividend paid on November
30, 2007. The dividend will be paid to stockholders of record as of February
14, 2008, payable on February 29, 2008.
Total assets at December 31, 2007 increased $10.0 million, or 2.6%, to
$400.4 million, compared to total assets of $390.4 million at September 30,
2007. The increase was primarily due to increases in cash and due from banks
of $4.5 million, or 82.5%, to $9.9 million at December 31, 2007 from $5.4
million at September 30, 2007, loans receivable, net of allowances, of $3.6
million, or 1.6%, to $229.1 million at December 31, 2007 from $225.5 million
at September 30, 2007, securities, including securities available-for-sale, of
$1.6 million, or 2.0%, to $79.5 million at December 31, 2007 from $77.9
million at September 30, 2007, loans held-for-sale of $1.4 million, or 2.4%,
to $60.6 million at December 31, 2007 from $59.2 million at September 30,
2007, offset in part by decreases in certificate of deposit investments of
$397,000, or 10.2%, to $3.5 million at December 31, 2007 from $3.9 million at
September 30, 2007 and other assets of $642,000, or 3.5%, to $17.9 million at
December 31, 2007 from $18.6 million at September 30, 2007.
COMPARISON OF OPERATING RESULTS FOR THE QUARTERS ENDED DECEMBER 31, 2007
AND 2006
Total net interest income before provision for loan losses decreased
$304,000, or 7.0%, to $4.1 million for the quarter ended December 31, 2007
compared to $4.4 million for the quarter ended December 31, 2006. Interest
income for the quarter ended December 31, 2007 decreased $447,000, or 6.3%, to
$6.7 million compared to $7.1 million for the comparable quarter in 2006.
Interest expense decreased $143,000, or 5.1%, to $2.6 million for the quarter
ended December 31, 2007 compared to $2.8 million for the quarter ended
December 31, 2006.
The average balance of net loans, including loans held-for-sale, increased
$1.4 million, or 0.5%, to $293.6 million for the quarter ended December 31,
2007 compared to $292.2 million for the comparable quarter in 2006. The
average balance of the Company's securities and other interest-earning assets
decreased $15.5 million, or 15.3%, to $86.1 million for the quarter ended
December 31, 2007 compared to $101.6 million for the comparable period in
2006. The Company continued to deploy the funds from repayments in its
securities portfolio and net deposit inflows into loan products, and to a
lesser extent, reinvestment in its held-to-maturity investment portfolio. The
average balance on total interest-earning assets decreased $14.2 million, or
3.6%, to $379.7 million for the quarter ended December 31, 2007 compared to
$393.9 million for the comparable quarter in 2006. The average yield on total
interest-earning assets decreased 20 basis points to 7.06% for the quarter
ended December 31, 2007 compared to 7.26% for the comparable period in 2006.
The average balance of deposits, which includes savings accounts, money
market, NOW accounts and certificates of deposit, increased by $20.4 million,
or 7.9%, to $277.1 million for the quarter ended December 31, 2007 compared to
$256.7 million for the same quarter in 2006. The average balance of
borrowings, which includes short and long term advances from the FHLB of New
York, decreased by $35.5 million, or 78.6%, to $9.7 million for the quarter
ended December 31, 2007 compared to $45.2 million for the quarter ended
December 31, 2006. The average cost of total interest-bearing liabilities
decreased one basis point to 3.68% for the quarter ended December 31, 2007
from 3.69% for the same quarter in 2006.
The loan loss provision increased by $51,000, or 300.0%, to $68,000 for
the quarter ended December 31, 2007 compared to $17,000 for the quarter ended
December 31, 2006.
Non-interest income decreased by $103,000, or 13.1%, to $682,000 for the
quarter ended December 31, 2007 from $785,000 for the same quarter in 2006.
The decrease was primarily due to decreases in syndication fees earned of
approximately $117,000, other miscellaneous mortgage fees of approximately
$84,000, depositor related fees of approximately $4,000 and other
miscellaneous income of $7,000, offset in part by increases in commercial loan
fees of $46,000, construction loan fees of $17,000, net gain on sale of loans
held-for-sale of $40,000 and bank owned life insurance income of $6,000.
Non-interest expense increased by $414,000, or 17.3%, to $2.8 million for
the quarter ended December 31, 2007 from $2.4 million for the same period in
2006. The increase was mainly due to a compensation and benefit expense
increase of $342,000, which included approximately $78,000 in expenses for the
partial vesting of the Company's stock-based incentive plan, increases in
employee salaries, health care insurance costs and director compensation.
There were also increases in occupancy and equipment expense primarily due to
rent increases on existing branch locations and the new branch rental in
Commack, Suffolk County, New York, of approximately $61,000, professional fees
of approximately $30,000, offset in part by reductions in data processing fees
of $17,000 and miscellaneous expenses of $2,000, which includes printing,
postage and other service fees.
Provision for income taxes decreased by $357,000, or 34.1%, to $689,000
for the quarter ended December 31, 2007 compared to a $1.0 million expense for
the same quarter in 2006. The primary reason for the decrease was decreased
taxable income before income taxes. The effective income tax rate for the
quarter ended December 31, 2007 was 37.0% compared to an effective income tax
rate of 38.3% for the same quarter in 2006.
STOCK REPURCHASE PROGRAMS
The Company's Board of Directors authorized a $1.5 million stock
repurchase program in January 2007 and a $2.0 million stock repurchase program
in August 2007. As of August 15, 2007 the Company completed the $1.5 million
stock repurchase program by repurchasing 102,370 shares, at an average cost of
$14.65 per share, with a total cost of approximately $1.5 million. The
Company continues to repurchase shares through its $2.0 million repurchase
plan and as of December 31, 2007, the Company had repurchased 113,782 shares,
at an average cost of $13.73 per share, with a total cost of approximately
$1.6 million.
Brooklyn Federal Savings Bank operates four banking offices, two located
in Brooklyn, one each in Nassau and Suffolk Counties, New York. The Bank
anticipates opening a fifth banking office, located in Commack, New York, in
the second fiscal quarter of 2008. Additional financial data for the quarter
ended December 31, 2007 may be found in Brooklyn Federal Bancorp's Quarterly
Report on Form 10-Q, which will be filed with the Securities and Exchange
Commission.
This press release may contain certain "forward-looking statements" which
may be identified by the use of such words as "believe," "expect," "intend,"
"anticipate," "should," "planned," "estimated," and "potential." Examples of
forward-looking statements include, but are not limited to, estimates with
respect to our financial condition, results of operations and business that
are subject to various factors which could cause actual results to differ
materially from these estimates and most other statements that are not
historical in nature. These factors include, but are not limited to, general
and local economic conditions, changes in interest rates, deposit flows,
demand for mortgage and other loans, real estate values, and competition;
changes in accounting principles, policies or guidelines; changes in
legislation or regulation; and other economic, competitive, governmental,
regulatory, and technological factors affecting our operations, pricing,
products and services.
FINANCIAL HIGHLIGHTS
At December 31, At September 30,
2007 2007
(In thousands)
Selected Financial Condition Data:
Total assets $400,458 $390,434
Cash and due from banks 9,851 5,398
Certificates of deposit 3,493 3,890
Securities available-for-sale 4,643 4,601
Securities held-to-maturity 74,874 73,354
Loans held-for-sale 60,597 59,153
Loans receivable, net 229,071 225,467
Deposits 299,605 287,155
Borrowings 7,171 9,271
Stockholders' equity 85,756 85,259
For the Three Months Ended
December 31, December 31,
2007 2006
(In thousands, except per share data)
Selected Operating Data:
Interest income $6,700 $7,147
Interest expense 2,640 2,783
Net interest income before
provision for loan losses 4,060 4,364
Provision for loan losses 68 17
Net interest income after provision
for loan losses 3,992 4,347
Non-interest income 682 785
Non-interest expense 2,812 2,398
Income before income taxes 1,862 2,734
Provision for income taxes 689 1,046
Net income $1,173 $1,688
Basic earnings per common share $0.09 $0.13
Diluted earnings per common share $0.09 $0.13
At or For the Three Months Ended
December 31, December 31,
2007 2006
Selected Financial Ratios:
Performance Ratios:
Return on average assets (1) 1.18 % 1.64 %
Return on average equity (1) 5.52 % 8.34 %
Interest rate spread (2) 3.38 % 3.57 %
Net interest margin (1) (3) 4.28 % 4.43 %
Efficiency ratio (4) 59.30 % 46.57 %
Non-interest expense to average
total assets (1) 2.82 % 2.34 %
Average interest-earning assets to
average interest-bearing liabilities 132.39 % 130.47 %
Asset Quality Ratios:
Non-performing assets as a percent of
total assets 0.01 % 0.46 %
Non-performing loans as a percent of
total loans 0.01 % 0.66 %
Allowance for loan losses as a percent
of total loans 0.64 % 0.62 %
Other Data:
Number of full service offices 4 4
(1) Ratio is annualized.
(2) Represents the difference between the weighted-average yield on
interest-earning assets and the weighted-average cost of
interest-bearing liabilities for the period.
(3) Represents net interest income as a percent of average
interest-earning assets for the period.
(4) Represents non-interest expense divided by the sum of net interest
income and non-interest income.
SOURCE Brooklyn Federal Bancorp, Inc.