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TABLE OF CONTENTS

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-Q

Commission File Number 1-13503

Staten Island Bancorp, Inc.
(Exact name of registrant as specified in its charter)

(718) 447-8880
(Registrant's telephone number, including area code)

        Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ý    No o

        Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act). Yes ý    No o

        Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date. The Registrant had 58,763,994 shares of Common Stock outstanding as of November 6, 2003.

TABLE OF CONTENTS

Part I.

FINANCIAL INFORMATION

Item 1. Financial Statements

STATEN ISLAND BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(UNAUDITED)

See accompanying notes to consolidated financial statements.

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STATEN ISLAND BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)

See accompanying notes to consolidated financial statements.

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STATEN ISLAND BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2003
(UNAUDITED)

See accompanying notes to consolidated financial statements.

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STATEN ISLAND BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2003 AND 2002
(UNAUDITED)

See accompanying notes to consolidated financial statements.

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STATEN ISLAND BANCORP, INC. AND SUBSIDIARY
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

ORGANIZATION/FORM OF OWNERSHIP

        SI Bank & Trust (the "Bank"), (f/k/a Staten Island Savings Bank) was originally founded as a New York State chartered savings bank in 1864. In August 1997, the Bank converted to a federally chartered mutual savings bank and is now regulated by the OTS. In December 1997, the Bank converted to a federally chartered stock savings bank and concurrently formed Staten Island Bancorp, Inc. (the "Company"), a holding company for the Bank (the "Conversion"). The Company completed its initial public offering and Conversion on December 22, 1997 and issued 45,130,312 shares of common stock, $.01 par value per share.

        The Company, on November 19, 2001, paid a stock dividend of one share for each share of stock held (two-for-one stock split) to shareholders of record on November 5, 2001. At September 30, 2003 the number of shares issued was 90,260,624 and the number of shares outstanding was 58,755,994.

        The Bank has the following wholly owned subsidiaries:

        SIB Mortgage Corp. ("the Mortgage Company") was incorporated in the State of New Jersey in 1998. The Mortgage Company currently originates loans in 42 states and, as of September 30, 2003, had assets totaling $2.2 billion of which $2.0 billion were loans held for sale.

        Staten Island Funding Corporation ("SIFC") is a wholly owned subsidiary of SIB Investment Corporation ("SIBIC"), incorporated in the State of Maryland in 1998 for the purpose of establishing a real estate investment trust ("REIT"). The assets of SIFC totaled $716.0 million at September 30, 2003.

        SIB Investment Corp. ("SIBIC") was incorporated in the State of New Jersey in 1998 for the purpose of managing certain investments of the Bank. The Bank transferred the common stock and a majority of the preferred stock of SIFC to SIBIC. The consolidated assets of SIBIC at September 30, 2003 were $966.1 million.

        SIB Financial Services Corporation ("SIBFSC") was incorporated in the State of New York in January 2000. SIBFSC was formed as a licensed life insurance agency to sell the products of the SBLI USA Mutual Life Insurance Co. In the second quarter of 2002, this subsidiary began offering certain non-deposit investment products such as mutual funds and annuities along with additional insurance products using a third party vendor. The assets of SIBFSC were $1.6 million as of September 30, 2003.

BUSINESS

        Staten Island Bancorp, Inc. is the holding company for SI Bank & Trust. The Bank is a full service community oriented bank, and operates 17 full service branches on Staten Island, three full service branches in Brooklyn, and a total of 15 full service branches in Ocean County, Monmouth County, Union County, and Middlesex County, New Jersey. The Bank also maintains a lending center and a Trust Department on Staten Island, a sales and marketing office for the Trust Department in East Brunswick, New Jersey along with a commercial lending office in Bay Ridge, Brooklyn and Howell, New Jersey.

        The Mortgage Company does retail business as Ivy Mortgage and wholesale business as SIB Mortgage Corp. and is headquartered in Branchburg, New Jersey. The Mortgage Company originates loans in 42 states and sells most of such loans to investors on a service fee released basis with standard mortgage company representations and warranties, thereby generating fee income. The Bank, in its efforts to manage interest rate risk and maintain yields, retains for its own portfolio certain loans originated by the Mortgage Company.

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        The Bank's deposits are insured by the Bank Insurance Fund ("BIF") to the maximum extent permitted by law. The Bank is subject to examination and regulation by the Office of Thrift Supervision ("OTS") which is the Bank's chartering authority and primary regulator. The Bank is also regulated by the Federal Deposit Insurance Corporation ("FDIC"), the administrator of the BIF. The Bank is also subject to certain reserve requirements established by the Board of Governors of the Federal Reserve System ("FRB") and is a member of the Federal Home Loan Bank ("FHLB") of New York, which is one of the 12 regional banks comprising the FHLB system.

BASIS OF FINANCIAL STATEMENT PRESENTATION

        The accompanying unaudited consolidated financial statements include the accounts of the Company and the Bank, a wholly owned subsidiary of the Company, and the Bank's subsidiaries. The Bank's wholly owned subsidiaries are the Mortgage Company, SIBIC, SIFC and SIBFSC. All significant intercompany transactions and balances are eliminated in consolidation.

        The unaudited consolidated financial statements included herein reflect all normal recurring adjustments which are, in the opinion of management, necessary for a fair statement of the results for the interim periods presented. The results of operations for the nine month period ended September 30, 2003 are not necessarily indicative of the results to be expected for the year ending December 31, 2003. Certain information and note disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission. The unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2002.

        In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the reported assets, liabilities, revenues and expenses as of the dates of the financial statements. Actual results could differ significantly from those estimates.

CRITICAL ACCOUNTING POLICIES

        Management views critical accounting policies as accounting policies that are important to the understanding of our financial statements and also involve estimates and judgments about inherently uncertain matters. In preparing the financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the consolidated statements of financial condition and assumptions that affect the recognition of income and expenses on the statement of operations for the periods presented. Actual results could differ significantly from those estimates. Material estimates that are particularly susceptible to significant change during the next year relate to the determination of the allowance for loan losses, the valuation of derivative financial instruments and the valuation of securities available for sale. The three accounting policies that we have identified as critical accounting policies are: allowance for loan and lease losses, derivative financial instruments and investment securities. These policies are discussed in the Company's Annual Report on Form 10-K for the year ended December 31, 2002.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

        The accounting and reporting policies of the Company and subsidiaries conform to generally accepted accounting principles and to general practice within the banking industry. These policies are discussed in the Company's Annual Report on Form 10-K for the year ended December 31, 2002.

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EARNINGS PER SHARE RECONCILIATION

        Earnings per share are computed by dividing net income by the weighted average number of shares of common stock and dilutive common stock equivalents outstanding, adjusted for the aggregate 4.9 million unallocated portion of shares held by the Company's Employee Stock Ownership Plan ("ESOP") and Recognition and Retention Plan ("RRP") in accordance with the Statement of Position 93-6. Earnings per share has been computed based on the following for the three months and nine months ended September 30, 2003 and 2002.

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        The calculation of diluted earnings per share includes weighted average common shares outstanding and potential common shares. Potential common shares that are antidilutive are not included in the computation of diluted earnings per share.

        Options to exercise 934,991 shares were excluded from the above calculations for the nine months ended September 30, 2003, because the effect would have been antidilutive.

ACCOUNTING FOR GOODWILL

        The Company adopted Statement of Financial Accounting Standards No. 142 "Goodwill and Other Intangible Assets," ("SFAS 142") effective January 1, 2002. In accordance with SFAS No. 142, the Company is no longer required to amortize goodwill resulting from acquisitions. At the effective date, the Company had goodwill of $53.0 million. An annual impairment test of the goodwill is conducted to determine if there is a need to writedown the goodwill.

        The carrying amount of goodwill and other intangible assets (in 000's) at September 30, 2003 and December 31, 2002 is as follows:

        Estimated future amortization expense (in 000's) related to the core deposit and other intangibles is as follows:

        For the year ending:

DERIVATIVE FINANCIAL INSTRUMENTS

        The Company currently utilizes certain derivative instruments, primarily forward delivery sale commitments, in its efforts to manage interest-rate risk associated with its interest-rate locked mortgage loan commitments and mortgage loans held for sale. On January 1, 2001, the Company adopted SFAS No. 133, "Accounting for Derivative Instruments and Hedging Activities," ("SFAS 133") which defines forward sale commitments as derivative financial instruments. In accordance with SFAS No. 133, derivative financial instruments are recognized in the Company's consolidated statements of financial condition at fair value, while changes in the fair value are recognized in the consolidated statements of income.

        Prior to July 1, 2002, the Company accounted for interest-rate locked commitments as off-balance sheet financial instruments. On March 13, 2002, the FASB Derivatives Implementation Group cleared Implementation Issue C13 ("Issue C13"), which offers guidance on the circumstances in which a loan commitment must be included in the scope of SFAS 133 and thus be accounted for as a derivative

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instrument. Changes in fair value of locked loan commitments as of each month-end are reflected in the consolidated statement of income. At the date the associated loan is closed, the loan basis is adjusted to reflect the fair value of the loan commitment on that date and becomes part of the loan basis.

        The effective date of the implementation guidance in Issue C13 for the Company was July 1, 2002, when the effects of initially complying with the guidance were reported as a change in accounting principle. During the first nine months of 2003, the Company recognized current pre-tax income of $1.3 million due to the change in fair value of locked loan commitments, net of the change in fair value of forward delivery sale commitments.

        At September 30, 2003, the Company had mandatory forward sale commitments amounting to $3.1 billion. The asset value arising from the fair market value of loan commitments at September 30, 2003 was $75.0 million of which $30.8 million was reported in other assets and $44.2 million reported as a basis adjustment to loans held for sale. At September 30, 2003 the Company had a liability for $25.2 million representing the fair market value of allocated and unallocated forward sales commitments of $4.3 million and $20.9 million, respectively.

        In April 2003, the FASB issued SFAS No. 149, "Amendment of Statement 133 on Derivative Instruments and Hedging Activities" ("SFAS 149"). SFAS 149 amends and clarifies accounting for derivative instruments, including certain derivative instruments embedded in other contracts, and for hedging activities under SFAS 133. In particular, this Statement clarifies under what circumstances a contract with an initial net investment meets the characteristic of a derivative and when a derivative contains a financing component that warrants special reporting in the statement of cash flows. This Statement is generally effective for contracts entered into or modified after June 30, 2003.

GUARANTEES AND INDEMNIFICATIONS

        On January 1, 2003, the Company adopted the recognition and measurement provisions of FASB Interpretation No. 45, "Guarantor's Accounting and Disclosure Requirements for Guarantees, including Indirect guarantees of Indebtedness of Others" ("FIN 45"), which requires that, for guarantees within the scope of FIN 45 issued or amended after December 31, 2002, a liability for the fair value of the obligation undertaken in issuing the guarantee be recognized. The Bank guarantees the lines of credit of the Mortgage Company by agreeing to, among other things, repurchase loans that remain on the line for more than 60 days. The Bank also provides standby letters of credit, the fees on which are now being deferred in accordance with FIN 45. The impact of adopting FIN 45 was not material.

FINANCIAL INSTRUMENTS WITH CHARACTERISTICS OF BOTH LIABILITIES AND EQUITY

        FASB No. 150 covering the "Accounting for Certain Financial Instruments with Characteristics of both Liabilities and Equity" becomes effective for the Company at the first interim period beginning after June 15, 2003. The Company has reviewed the requirements of FASB No. 150 and at the present time has no such financial instruments that have the characteristics noted.

SEGMENT REPORTING

        The Company manages its operations in a manner to focus on two strategic goals: fulfilling its role as a community banking institution for both individuals and businesses and as a national provider of single-family residential mortgage loan products. Accordingly, the Company aligns its various business objectives in support of these goals and manages the Company through two segments: Community Banking and Mortgage Banking.

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        Community Banking.    The Company's Community Banking segment provides traditional banking services to commercial and retail customers generally located in areas in relatively close proximity to the Bank's branch office locations in Staten Island and Brooklyn, New York and in New Jersey. The services include deposit accounts and related services, residential and commercial real estate lending, consumer lending, commercial lending, loan servicing, trust services, non-deposit investment products and life insurance products. Products and services offered by this business segment are delivered through a multi-channel distribution network, including online banking.

        Mortgage Banking.    The Company's Mortgage Banking segment activities, which are conducted through the Mortgage Company, primarily include the origination of residential real estate loans either for sale into the secondary market or, to a lesser extent, for retention in the Bank's portfolio. The loans are originated throughout the Mortgage Company's network in 42 states. Loans are sold by the Mortgage Company to investors, including certain government-sponsored agencies.

        The Mortgage Banking segment's net loss for the quarter ended September 30, 2003 was $1.5 million compared to net income of $17.4 million for the quarter ended September 30, 2002. The 2002 quarter included a $4.7 million after taxes cumulative effect due to a change in accounting principle to comply with implementation guidance in Issue C13 of FASB 133. The $14.2 million decrease in net income before the cumulative effect of the accounting change for the Mortgage Company was primarily the result of increases in operating expenses of $78.2 million, which were partially offset by increases in other income of $44.4 million, an increase in net interest income of $6.4 million and a reduction in the provision for income taxes of $10.1 million. The increase in operating expenses was primarily the result of a $55.2 million increase in commission expense, an $8.4 million increase in payroll costs and a $4.7 million increase in direct loan costs. All of these costs are a function of the continuing high level of new loans originated by the Mortgage Company. The Mortgage Company's loan originations and purchases were $5.3 billion and its loan sales amounted to $5.2 billion for the quarter ended September 30, 2003, as compared to $2.2 billion in loan originations and $1.8 billion in loan sales for the quarter ended September 30, 2002. The increase in other income at the Mortgage Company reflects the increases in net gains on loan sales of $50.4 million and increased loan fees of $8.5 million due to increased volumes, which were partially offset by a $14.5 million reduction in unrealized gains on derivative transactions. The increase in the net gains on loan sales at the Mortgage Company was a result of the increased volume of loan sales partially offset by the reduction in gross margins from 2.57% during the third quarter of 2002 to 2.09% in the third quarter of 2003. The decrease in margins occurred on all products sold between the periods noted. The reduction in the unrealized gain on derivative transactions from a net gain of $14.0 million during the third quarter of 2002 to a net loss of $498,000 during the third quarter of 2003 was primarily due to rising and volatile interest rates during the third quarter of 2003. In light of the current interest rate environment, the Mortgage Company is assessing the loan products offered and streamlining its operations to reduce expenses. The reduction in the provision for income taxes is a result of the lower income before tax in the third quarter of 2003 as compared to the third quarter of 2002.

        The Mortgage Banking segment's net income for the nine months ended September 30, 2003 was $19.7 million compared to $29.6 million for the nine months ended September 30, 2002. The Mortgage Company's net income for the 2002 period included the $4.7 million after taxes cumulative effect due to a change in accounting principle to comply with the implementation guidance in Issue C13 of SFAS No. 133. For the nine months ended September 30, 2003 the Mortgage Company's loan originations and purchases were $13.6 billion and its loan sales amounted to $13.3 compared to $5.0 billion in loan originations and $4.8 billion in loan sales for the nine months ended September 30, 2002.

        The Mortgage Company sells various types of loans in the secondary market. The following tables summarize loans sold by the Mortgage Company and gross margins realized by type of loan. The table

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does not reflect the unrealized gains or losses on derivative transactions (FASB No. 133), nor the effect of the deferred loan costs or fees in accordance with FASB No. 91.

        The Mortgage Company sells whole mortgage loans and pools of mortgage loans on a servicing released basis. Mortgage origination fees, net of direct loan costs, are deferred and included in mortgage loans held for sale until the loans are sold. Gain on sale of mortgage loans is the differential between the sale proceeds, including premium, if any, and the carrying amount of the mortgage loans.

        Certain of the Mortgage Company's expenses are a function of the volume of loan applications and originations. A substantial amount of the expense associated with loan originations is commission expense, which includes premiums paid to brokers and commissions paid to retail loan officers to originate a loan.

        With the exception of loans originated for the Bank's portfolio, all loans originated by the Mortgage Company are originated for sale into the secondary market and the Mortgage Company assumes limited repurchase risk. In connection with the sale of loans to mortgage loan investors, the Mortgage Company and investor make standard secondary market representations and warranties. These representations and warranties relate to, among other things, the Mortgage Company's compliance with laws, regulations, investor standards and the accuracy of information supplied by borrowers and verified by the Mortgage Company.

        The Mortgage Company also represents and warrants that the borrowers will make payments as agreed for a specified period of time after transfer of ownership of the loans to the investors. The time period ranges up to 90 days after the loan transfer. In the event of payment default within the warranty period, the investor may require the Mortgage Company to repurchase the loan or the Mortgage Company and investor may mutually agree to extend the warranty period. In certain cases where repurchase is required, an alternative settlement may be reached whereby the investor reprices the loan to market based on its then impaired status, and accepts a cash payment of the difference between the price originally paid by the investor and the repriced market value as full satisfaction of the Mortgage Company's warranty for that loan.

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        During 2002, the Mortgage Company established a Representation and Warranty Reserve ("R&WR"). The R&WR was established to provide for the potential liabilities associated with residential loans sold, or awaiting sale, in the normal course of business. The R&WR differs from the traditional allowance for loan losses which provides for losses associated with loans held for investment. The R&WR provides for losses on loans sold or held for sale. The R&WR is included on the Company's balance sheet within Other Liabilities and, in contrast to the allowance for loan losses, does not affect the loan basis. The Mortgage Company made a provision to the R&WR of $11.0 million in the first nine months of 2003, which reduced the reported amount of gain on loan sales. The balance in the R&WR at September 30, 2003 was $4.8 million compared to $3.5 million at December 31, 2002.

        The segment operating revenue and operating earnings in the table below incorporate certain intersegment transactions that the Company views as appropriate for purposes of reflecting the contribution of certain segments, which are eliminated in the preparation of the Company's consolidated financial statements in accordance with generally accepted accounting principles.

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