Financial Report as of December 31, 2019

Conservative management with virtually no non-performing loans resulted in our 28th year of uninterrupted profitability.

During the current COVID-19 pandemic, Apple Bank remains deeply committed to the welfare of our employees, customers and all the communities we serve.

A critical part of this commitment is ensuring Apple Bank’s safety and soundness with prudent financial management. Throughout past financial crises, the Bank’s long history of conservative management and careful attention to credit quality have allowed it to remain solidly profitable, resulting in our 28th year of uninterrupted profitability in 2019. Apple Bank’s balance sheet is comprised primarily of high-quality loans and securities, and its capital ratios remain strong. The Bank went into the COVID-19 crisis in a very strong financial condition with almost no non-performing loans and almost half of its assets in government-guaranteed loans and securities. We are well-capitalized and have strong funding and liquidity.

Our conservative fiscal management and strong financial performance provide a solid foundation as we look ahead to post-pandemic recovery. Certainly, all sectors of the economy will be faced with challenges in the future. During this unprecedented time, the Bank’s priority is the safety of employees and customers, while ensuring continuity of services to our customers and the communities we serve. Operations are up and fully engaged across all areas of the Bank, including our branches and call center. We have successfully shifted the majority of our administrative employees to work remotely. However, we may have to periodically close certain branch locations in accordance with Centers for Disease Control (CDC) guidance and to observe safety requirements to protect our customers and employees. Please regularly check for the latest updates on branch openings, closings and operating hours.

Financial Highlights as of December 31, 2019 include:

  • Net income of $111.3 million for the year ended 12/31/19
  • Deposits of $13.5 billion
  • Non-performing loans of only $1.3 million in a loan portfolio of $10.1 billion
  • Loan loss reserves cover non-performing loans by 25.1X
  • Total shareholders' equity and capital and reserves of $1.3 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, 2019

Capital Ratios      
  Apple Bank
Regulatory Minimum for
"Well Capitalized" Designation
Apple Financial Holdings*
Tier 1 leverage ratio    7.28%   5.00%    7.29%
Tier 1 risk based ratio 13.77%   8.00% 13.78%
Total risk based ratio 14.22% 10.00% 14.24%
Common equity tier 1 capital ratio 13.77%   6.50% 11.99%
Capital conservation buffer   6.22%   2.50%   6.24%
Consolidated Statement of Condition (Amounts in Thousands)
Cash on hand & due from banks $ 977,445
Investment Securities 4,016,880
Loans (net of reserves) 10,055,160
Other assets 758,686
TOTAL ASSETS $15,808,171
Deposits $13,466,100
Other Liabilities 1,022,596
Stockholders' Equity 1,319,475
Consolidated Statement of Operations 12/31/2019 (Amounts in Thousands)
Revenues $ 340,306
Expenses (194,575)
Net Income Before Taxes 151,731
Net Income $ 111,306

Changes in Equity Capital as of December 31, 2019

Beginning Stockholders' Equity $ 1,195,843
2019 Net Income 111,306
Cash Dividends Paid ( 7,600)
Changes in Other Comprehensive Income 19,926
Ending Stockholders' Equity $ 1,319,475
Changes in Loan Loss Reserves as of December 31, 2019
Beginning Loan Loss Reserves $ 36,732
Provision for Loan Loss (3,853)
Recoveries 390
Charge-offs (23)
Ending Loan Loss Reserves $ 33,246

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.