Financial Report as of December 31, 2015

Conservative management with virtually no non-performing loans resulted in solidly profitable performance.

Apple Bank for Savings remained one of the strongest depository institutions in the nation through December 31, 2015. Apple's balance sheet is comprised primarily of high-quality loans and securities, and its capital ratios remain strong. 79% of Apple Bank's loan portfolio is comprised of well-secured mortgage loans on residential, multi-family, and commercial properties in New York City and its suburbs, and government-guaranteed commercial loans. Its $10.1 billion total loan portfolio includes only $3.9 million in non-performing loans. The Bank's careful attention to credit quality has allowed it to remain solidly profitable.

Highlights as of December 31, 2015 include:

  • Net income of $40.3 million for the year ended 12/31/15
  • Deposits of $11.3 billion
  • Non-performing loans of only $3.9 million in a loan portfolio of $10.1 billion
  • Loan loss reserves cover non-performing loans by 7.7X
  • Total shareholders' equity and capital and reserves of $1.0 billion
  • Capital ratios that are in excess of all regulatory requirements.

Apple Bank, the second largest state-chartered savings bank in New York, traces its New York origins back to 1863. It operates from 79 full-service branch locations in the greater New York area, including Manhattan, Brooklyn, the Bronx, Queens, Staten Island, Long Island, Westchester and Rockland.

Financial Data as of December 31, 2015

Capital Ratios      
  Apple Bank
Regulatory Minimum for
"Well Capitalized" Designation
Apple Financial Holdings*
Tier 1 leverage ratio 6.23% 5.00% 6.23%
Tier 1 risk based ratio 11.66% 8.00% 11.66%
Total risk based ratio 12.20% 10.00% 12.20%
Common equity tier 1 capital ratio 11.66% 6.50% 9.48%
Consolidated Statement of Condition (Amounts in Thousands)
Cash on hand & due from banks $1,021,960
Investment Securities 1,178,696
Loans (net of reserves) 10,090,193
Other assets 504,207
TOTAL ASSETS $12,795,056
Deposits $11,281,277
Other Liabilities 507,246
Stockholders' Equity 1,006,533
Consolidated Statement of Operations 12/31/2015 (Amounts in Thousands)
Revenues $ 195,184
Expenses (123,633)
Net Income Before Taxes 71,551
Net Income $ 40,263

Changes in Equity Capital as of December 31, 2015

Beginning Stockholders' Equity $ 978,827
2015 Net Income 40,263
Cash Dividends Paid ( 7,600)
Changes in Other Comprehensive Income ( 4,957)
Ending Stockholders' Equity $ 1,006,533
Changes in Loan Loss Reserves as of December 31, 2015
Beginning Loan Loss Reserves $ 21,078
Provision for Loan Loss 8,629
Recoveries 10
Charge-offs (99)
Ending Loan Loss Reserves $ 29,618

I hereby attest that the above information is true and complete.

Louis A. Rawden
Senior Vice President
Chief Financial Officer

*Apple Financial Holdings is the holding company that owns 100% of Apple Bank.

Disclaimer required by Part 350.4 (d) of the FDIC Rules and Regulations: This statement has not been reviewed, or confirmed for accuracy or relevance, by the Federal Deposit Insurance Corporation.