New York Community Bancorp, Inc. Reports 3rd Quarter 2005 Diluted GAAP EPS of $0.30 and Diluted Cash EPS of $0.32.WESTBURY Westbury, residential village (1990 pop. 13,060), Nassau co., SE N.Y., on Long Island; settled 1650, inc. 1932. The State Univ. of New York's Westbury campus is located in the village. Harness races are held at Roosevelt Raceway there. , N.Y. -- Looks Forward to the Benefits of the Strategic Acquisitions of Long Island Financial Corp. and Atlantic Bank of New York
3rd Quarter 2005 Highlights --Tangible stockholders' equity Stockholders' Equity The portion of the balance sheet that includes capital received from investors in exchange for stock (paid-in capital), donated capital, and retained earnings. This is equal to total assets minus liabilities, preferred stock and intangible assets. equaled 5.58% of tangible assets Tangible Asset An asset that has a physical form such as machinery, buildings and land. Notes: This is the opposite of an intangible asset such as a patent or trademark. Whether an asset is tangible or intangible isn't inherently good or bad. at quarter-end excluding net unrealized losses Unrealized Loss A loss that results from holding onto an asset rather than cashing it in and officially taking the loss. Notes: Let's say you own a stock that is down 50%, but you haven't sold it to realize the loss yet. This is said to be an unrealized loss. on securities, representing a year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. increase of 19 basis points; including net unrealized losses, the ratio improved 15 basis points to 5.37% --The Bank's leverage capital ratio equaled 8.76% at quarter-end --At quarter-end, securities totaled $5.6 billion, representing 22.6% of total assets; loans totaled $15.9 billion, representing 63% of total assets, including $12.0 billion of multi-family loans, representing 76% of total loans --Reflecting the repositioning repositioning Laparoscopic surgery The changing of a Pt's position during a procedure to improve access or visualization of the operative field, which may be linked to complications, as it changes anatomic planes of operation. Cf Laparoscopic surgery. of the balance sheet that began in June June: see month. 2004, securities are down $7.9 billion, or 58%; loans are up $4.0 billion, or 32%; deposits are up $1.1 billion, or 11%; and wholesale borrowings are down $5.6 billion, or 35% --Since August 1st, the Company has announced strategic acquisitions of Long Island Financial Corp. and Atlantic Bank of New York. As a result of these prospective acquisitions, the Company expects to have:
-- Total assets of approximately $27.0 billion;
-- Net securities of approximately $5.2 billion, representing
19% of total assets;
-- Loans of approximately $17.2 billion, representing 64% of
total assets; and
-- Deposits of approximately $13.4 billion, including core
deposits of approximately $8.8 billion, representing 66%
of total deposits
New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of Community Bancorp, Inc. (NYSE NYSE See: New York Stock Exchange : NYB NYB Not Your Business ) today reported third quarter 2005 earnings of $77.6 million, or $0.30 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, generating a 1.38% return on average tangible assets ("ROTA ro·ta n. 1. Chiefly British A roll call or roster of names. 2. Chiefly British A round or rotation of duties. 3. ") and a 26.49% return on average tangible Possessing a physical form that can be touched or felt. Tangible refers to that which can be seen, weighed, measured, or apprehended by the senses. A tangible object is something that is real and substantial. An automobile is an example of tangible Personal Property. stockholders' equity ("ROTE rote 1 n. 1. A memorizing process using routine or repetition, often without full attention or comprehension: learn by rote. 2. Mechanical routine. "). The Company's cash earnings for the quarter totaled $83.8 million, or $0.32 per diluted share, generating an ROTA of 1.46% and an ROTE of 27.98%.(1) For the nine months ended September September: see month. 30, 2005, the Company reported earnings of $255.2 million, or $0.97 per diluted share, providing returns on average assets and stockholders' equity of 1.53% and 29.59%, respectively. The Company's cash earnings for the current nine-month period amounted to $274.6 million, or $1.05 per diluted share, and provided an ROTA of 1.61% and an ROTE of 31.20%.(1) In view of the significant difference in the Company's balance sheet as a result of the repositioning in June 2004 and the Company's subsequent actions, management believes that a comparison of the Company's results for the third and second quarters of 2005 is more germane ger·mane adj. Being both pertinent and fitting. See Synonyms at relevant. [Middle English germain, having the same parents, closely connected; see german2. to understanding the progress made, and the Company's current direction, than a comparison of its third quarter and nine-month 2005 and 2004 results. Acquisitions Expected to Enhance Earnings, Improve Margin, and Generate Core Deposit Growth Commenting on the Company's third quarter 2005 performance, President and Chief Executive Officer Joseph R. Ficalora stated, "The quarter was consistent with our expectations, and reflects the actions we have been taking to position ourselves for the challenges and opportunities that lie ahead. As the two acquisitions we've we've Contraction of we have. we've have recently announced suggest, we are very much focused on the future, and the opportunity to enhance our earnings, improve our margin, and generate core deposit growth. Between them, LICB LICB Long Island Commercial Bank (New York, USA) LICB limited international bidding procedures and Atlantic Bank are expected to bring $1.5 billion in low-cost core deposits, and a loan portfolio that both complements and builds upon our own. With the addition of 29 branches, including five in Manhattan Manhattan, indigenous people of North America Manhattan (mănhăt`ən), indigenous people of North America of the Algonquian-Wakashan linguistic stock (see Native American languages). , the acquisitions also represent the potential to build our customer base and our revenue stream. "Looking at our balance sheet at the end of the quarter, we see the ongoing benefit of our repositioning," Mr. Ficalora said. "At $5.6 billion, securities now represent 22.6% of total assets, and are expected to decline to 19% in connection with the completion of the transaction with Atlantic Bank. At $15.9 billion, total loans now represent 63% of total assets, and are on target to meet our internal growth expectations by the end of the year. These improvements in our balance sheet reflect the strength of our business model and, we expect, will only be enhanced by the acquisitions that are soon to take place. "In anticipation The performance of an act or obligation before it is legally due. In patent law, the publication of the existence of an invention that has already been patented or has a patent pending, of further short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. rate increases by the FOMC See Federal Open Market Committee. FOMC See Federal Open Market Committee (FOMC). and the expected infusion INFUSION, med. jur. A pharmaceutical operation, which consists in pouring a hot or cold fluid upon a substance, whose medical properties it is desired to extract. Infusion is also used for the product of this operation. Although infusion differs from decoction, (q.v. of core deposits through the LICB and Atlantic Bank transactions, we took the opportunity to reposition our deposit mix. While deposits are up year-to-date, they declined on a linked-quarter basis," Mr. Ficalora noted, "reflecting our decision to run off brokered deposits that we had added in the second quarter in order to fund the high volume of loans we produced. At the same time, we decided to shift our focus from liquid money market accounts to term deposits in order to stabilize stabilize See peg. our deposit base. As a result, CDs have grown 14% in the last three months. "Although funding costs continue to rise, as they have for the past five quarters, the magnitude magnitude, in astronomy, measure of the brightness of a star or other celestial object. The stars cataloged by Ptolemy (2d cent. A.D.), all visible with the unaided eye, were ranked on a brightness scale such that the brightest stars were of 1st magnitude and the of the contraction contraction, in physics contraction, in physics: see expansion. contraction, in grammar contraction, in writing: see abbreviation. contraction - reduction in our margin has begun to decrease," Mr. Ficalora commented. "We expect the downward trend to be mitigated mit·i·gate v. mit·i·gat·ed, mit·i·gat·ing, mit·i·gates v.tr. To moderate (a quality or condition) in force or intensity; alleviate. See Synonyms at relieve. v.intr. To become milder. by the LICB and Atlantic transactions, and look forward to the positive contributions they are expected to make not only to our margin, but also to the addition of a commercial banking platform to our business model, and the long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. value of the Company. "The volume of loans produced in the last three months, while below the trailing-quarter level, actually exceeded our expectations, as market conditions became more conducive con·du·cive adj. Tending to cause or bring about; contributive: working conditions not conducive to productivity. See Synonyms at favorable. to lending as the quarter progressed," Mr. Ficalora said. "Of the $991 million of loans produced, the majority consisted of loans on multi-family buildings, which continue to be our primary niche niche: see ecology. niche Smallest unit of a habitat that is occupied by an organism. A habitat niche is the physical space occupied by the organism; an ecological niche is the role the organism plays in the community of organisms found in the . While margin contraction continued in the face of the flattening
The flattening, ellipticity, or oblateness of an oblate spheroid is the "squashing" of the spheroid's pole, down towards its equator. yield curve, our average yield on assets was stable, while the average yield on our loans, I'm I'm Contraction of I am. Our Living Language Speakers of some scattered varieties of American English sometimes use I'm instead of I've or I have in present perfect constructions, as in pleased to say, increased. "We also are encouraged by the level of prepayment penalties Prepayment penalty A fee a borrower pays a lender when the borrower repays a loan before its scheduled time of maturity. during the quarter," Mr. Ficalora noted. "Prepayment penalties on loans rose $8.0 million to $13.2 million, including $1.8 million recorded in interest income, and $11.4 million recorded as fee income, largely reflecting the prepayment Prepayment 1. The payment of a debt obligation prior to its due date. 2. The excess payment over a scheduled debt repayment amount. Notes: 1. Examples include deferred expenses such as rent and early loan repayments. 2. of a multi-family loan that had been in our portfolio for little more than a year. The increase in fee income contributed nicely to our third quarter earnings, which also reflected the benefit of our ongoing efficiency. Our efficiency ratio continues to be among the best in the nation, measuring 29.82% for the quarter and 27.90% year-to-date. Based on the strength of our earnings, on both a GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). and cash basis," Mr. Ficalora noted, "we were quite comfortable in maintaining our quarterly cash dividend at the current $0.25 per share level, as we announced last week. "At the start of this year, we noted that 2005 would be a year of transition, and so it is proving to be," Mr. Ficalora said. "The improvements we've made to our balance sheet over the past five quarters will be reinforced re·in·force also re-en·force or re·en·force tr.v. re·in·forced, re·in·forc·ing, re·in·forc·es 1. To give more force or effectiveness to; strengthen: The news reinforced her hopes. by the addition of the LICB and Atlantic Bank franchises, and the value of our Company enhanced by the addition of their branches, products, and staff." Balance Sheet Summary The Company recorded total assets of $25.0 billion at September 30, 2005, a $977.1 million increase from the balance recorded at December December: see month. 31, 2004. Reflecting the ongoing repositioning of the balance sheet, total loans rose $2.5 billion, or 18.4% in the first nine months of 2005, or 24.5% on an annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. basis, while total securities declined $1.4 billion, or 20.2%. At September 30, 2005, loans and securities represented 63.4% and 22.6%, respectively, of total assets, in contrast to 55.7% and 29.5%, respectively, at December 31, 2004. Loans The Company recorded total loans of $15.9 billion at the close of the current third quarter, up from $13.4 billion at December 31, 2004. The increase was driven by year-to-date originations totaling $4.8 billion, including $990.5 million in the three months ended September 30, 2005. Multi-family loans represented 73.3% of year-to-date originations, with commercial real estate and construction loans representing 13.5% and 10.7%, respectively. The growth of the loan portfolio was partly tempered by year-to-date repayments and sales totaling $2.3 billion, including $818.9 million in the third quarter of the year. Multi-family loans rose $2.2 billion, or 21.9%, from the balance recorded at the end of December to $12.0 billion, representing 75.6% of total loans, at September 30, 2005. The increase reflects year-to-date originations of $3.5 billion, including third quarter originations of $584.7 million. The portfolio had an average principal balance of $3.5 million at the close of the quarter and an average loan-to-value ratio Loan-to-value ratio (LTV) The ratio of money borrowed on a property to the property's fair market value. of 60.1%. The expected weighted average life of the portfolio was 3.2 years at September 30, 2005. Multi-family loans are typically originated for a term of ten years, with a fixed rate of interest in the first five years, tied to the five-year Treasury, and a rate that adjusts annually in years six through ten. The Company's multi-family loans typically refinance Refinance 1. When a business or person revises their payment schedule for repaying debt. 2. Replacing an older loan with a new loan offering better terms. Notes: When a business refinances they typically extend the maturity date. within the first five-year period and, in doing so, generate prepayment penalties ranging from five points to one point of the initial loan balance. The majority of the Company's multi-family loans are secured by rent-regulated buildings in New York City New York City: see New York, city. New York City City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. and the proceeds typically used by the Company's borrowers to make improvements to the properties. Because the rents on the apartments in these buildings are generally below market, the buildings tend to be fully occupied oc·cu·py tr.v. oc·cu·pied, oc·cu·py·ing, oc·cu·pies 1. To fill up (time or space): a lecture that occupied three hours. 2. To dwell or reside in. 3. , even during times of economic adversity ad·ver·si·ty n. pl. ad·ver·si·ties 1. A state of hardship or affliction; misfortune. 2. A calamitous event. . The Company's asset quality has been supported by its multi-family credits, which have not incurred a loss for more than twenty years TWENTY YEARS. The lapse of twenty years raises a presumption of certain facts, and after such a time, the party against whom the presumption has been raised, will be required to prove a negative to establish his rights. 2. . The Company has been originating multi-family loans in this market for several decades. Its longevity longevity (lŏnjĕv`ĭtē), term denoting the length or duration of the life of an animal or plant, often used to indicate an unusually long life. reflects the relationships it has developed with several leading mortgage brokers, who are familiar with the Company's lending practices, its underwriting Underwriting 1. The process by which investment bankers raise investment capital from investors on behalf of corporations and governments that are issuing securities (both equity and debt). 2. The process of issuing insurance policies. standards, and its long-standing long-stand·ing adj. Of long duration or existence: a long-standing friendship. long-standing Adjective existing for a long time practice of lending on the cash flows produced by the rent rolls of the buildings collateralizing these loans. Because the multi-family market is largely broker-driven, these longstanding Adj. 1. longstanding - having existed for a long time; "a longstanding friendship"; "the longstanding conflict" long - primarily temporal sense; being or indicating a relatively great or greater than average duration or passage of time or a duration as specified; relationships have supported the growth of the Company's multi-family loan portfolio. Commercial real estate loans totaled $2.6 billion at September 30, 2005, representing 16.5% of total loans outstanding and a $470.3 million, or 22.0%, increase from the balance recorded at December 31, 2004. The increase reflects year-to-date originations totaling $640.1 million, including $165.4 million in the third quarter of the year. At September 30, 2005, the portfolio had an average principal balance of $2.7 million and a loan-to-value ratio of 58.2%; the expected weighted average life of the portfolio was 3.6 years at that date. The Company's commercial real estate loan portfolio is largely secured by mixed-use mixed-use adj. Containing or zoned for commercial and residential facilities or development: a 40-story mixed-use tower; a mixed-use parcel of land. and office buildings in New York City and national credit retail shopping centers shopping center, a concentration of retail, service, and entertainment enterprises designed to serve the surrounding region. The modern shopping center differs from its antecedents—bazaars and marketplaces—in that the shops are usually amalgamated into in both New York City and Long Island. Commercial real estate loans feature terms that parallel the terms featured by the Company's multi-family credits. The Company has not had a loss on a commercial real estate loan in more than ten years. The construction loan portfolio totaled $900.3 million at September 30, 2005, representing 5.7% of total loans outstanding and a $96.0 million, or 11.9%, increase from the year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. 2004 amount. The increase reflects year-to-date originations totaling $508.2 million, including $193.3 million in the third quarter of the year. The majority of the portfolio consists of loans for the construction of one-to-four family homes on Long Island, where the Bank is the primary lender LENDER, contracts. He from whom a thing is borrowed. 2. The contract of loan confers rights, and imposes duties on the lender. 1. The lender has the right to revoke the loan at his mere pleasure; 9 Cowen, R. 687; 8 Johns. Rep. 432; 1 T. R. 480; 2 Campb. Rep. to several leading builders and developers. The typical construction loan features a term of 18 to 24 months and a floating rate of interest tied to prime. Since December 1, 2000, the Company has been originating one-to-four family loans on a pass-through pass-through n. 1. An opening between two rooms, especially a shelved space between a kitchen and dining room that is used for passing food. 2. A route through which something is permitted to pass. 3. basis, and selling the loans to a third-party conduit conduit /con·du·it/ (kon´doo-it) channel. ileal conduit the surgical anastomosis of the ureters to one end of a detached segment of ileum, the other end being used to form a stoma on the within ten days of closing, service-released. Reflecting this practice, repayments, and the sale of loans totaling $170.7 million in the second quarter, the balance of one-to-four family loans declined $239.3 million, or 47.3%, from the year-end 2004 level to $266.8 million, representing 1.7% of total loans, at September 30, 2005. The remaining loans in portfolio are seasoned loans that were originated before the conduit policy was adopted or that were acquired in the Company's previous merger transactions. Asset Quality Non-performing assets totaled $35.6 million at the close of the current third quarter, representing a linked-quarter improvement of $7.2 million, or 16.8%. The September 30, 2005 amount was equivalent to 0.14% of total assets, an improvement from 0.17% at June 30, 2005. Included in the September 30, 2005 amount are two non-performing loans A non-performing loan is a loan that is in default or close to being in default. Many loans become non-performing after being in default for 3 months, but this can depend on the contract terms. that are currently expected to be satisfied in the fourth quarter: a $10.7 million construction loan that is still accruing interest, and a $7.0 million non-accrual construction loan. Non-accrual loans totaled $23.7 million at the close of the third quarter, including mortgage loans of $22.5 million and other loans of $1.2 million. The allowance for loan losses totaled $78.0 million at September 30, 2005, equivalent to 0.49% and 227.23% of total loans and non-performing loans, respectively. Since December 31, 2004, the Company has charged-off $14,000 of consumer loans acquired in merger transactions, including three thousand dollars in the third quarter; no provisions for loan losses were recorded during this time. Other real estate owned Real Estate Owned Property owned by a lender - usually a bank - after an unsuccessful sale at a foreclosure auction. This is common because most of the properties up for sale at these auctions are worth less than the total amount owed to the bank: the minimum bid in most totaled $1.3 million at the close of the third quarter, up from $485,000 at June 30, 2005. The increase reflects the addition of a single commercial real estate property in Manhattan that was previously included in non-accrual loans. The Company is currently in the process of marketing this property for sale and does not expect to incur To become subject to and liable for; to have liabilities imposed by act or operation of law. Expenses are incurred, for example, when the legal obligation to pay them arises. An individual incurs a liability when a money judgment is rendered against him or her by a court. a loss when such property is sold. Securities In keeping with the Company's focus on enhancing its market and interest rate risk profile, the balance of securities continued to decline in the third quarter of 2005. Securities totaled $5.6 billion, representing 22.6% of total assets, at the end of September, as compared to $7.1 billion, representing 29.5% of total assets, at December 31, 2004. Year-over-year, the contrast is even greater, with securities having totaled $7.5 billion and represented 31.8% of total assets at September 30, 2004. Available-for-sale securities represented $2.3 billion, or 40.2%, of total securities at the close of the current third quarter, and were down $836.4 million and $995.9 million, respectively, from the amounts recorded at December 31 and September 30, 2004. Mortgage-related securities represented $2.1 billion of the September 30, 2005 total, and were down $819.1 million and $989.3 million, respectively, from the balances recorded at the earlier dates. Other securities represented the remaining $189.8 million of available-for-sale securities at the close of the current third quarter, and were down $17.2 million and $6.6 million, respectively, from the balances recorded at December 31 and September 30, 2004. The after-tax af·ter-tax also af·ter·tax adj. Relating to or being that which remains after payment, especially of income taxes: after-tax profits. net unrealized loss on securities available for sale was $36.8 million at the close of the current third quarter, as compared to $17.6 million at June 30, 2005. The difference was attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to the increase in market interest rates over the three-month period. Held-to-maturity securities Held-to-Maturity Securities Debt securities that a firm has the ability and intent to hold until maturity. Notes: These are reported at amortized cost, therefore, they are not affected by swings in the financial markets. See also: Debt, Maturity represented $3.4 billion, or 59.8%, of total securities at the close of the current third quarter, and were down $594.7 million and $872.9 million, respectively, from the amounts recorded at December 31 and September 30, 2004. Mortgage-related securities accounted for $1.7 billion of the September 30, 2005 total, down $439.9 million and $613.1 million, respectively, from the balances recorded at the earlier dates. Other securities held to maturity totaled $1.7 billion at the close of the current third quarter, and were down $154.8 million and $259.8 million, respectively, from the balances recorded at December 31 and September 30, 2004. In connection with the prospective acquisitions of Long Island Financial Corp. (Nasdaq: LICB) ("LICB") and Atlantic Bank of New York ("Atlantic Bank"), the Company has announced its intention of reducing the pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma balance of securities by an additional $1.3 billion. Reflecting the anticipated post-acquisition reduction and the reductions to be made by the stand-alone company stand-alone company An independent operating firm. For example, a large diversified firm may consider spinning off a subsidiary because, as a stand-alone company, the subsidiary would command a higher price-earnings ratio than the parent. in the current fourth quarter, the securities portfolio is expected to equal approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 19% of total assets. Sources of Funds The growth of the Company's loan portfolio has been supported by four primary funding sources: principal repayments and interest on loans; cash flows from securities redemptions and sales; wholesale borrowings in the form of FHLB-NY advances and repurchase agreements Repurchase agreement An agreement with a commitment by the seller (dealer) to buy a security back from the purchaser (customer) at a specified price at a designated future date. ; and deposit growth. In connection with management's focus on reducing securities, securities generated year-to-date cash flows of approximately $1.4 billion, including $305 million in the third quarter of the year. Loan repayments generated cash flows of $2.1 billion in the current nine-month period, including $788.3 million in the three months ended September 30, 2005. While the Company's asset mix has changed significantly over the past several quarters, its liabilities have also been the focus of a strategic shift. The Company has taken several actions since the second quarter of 2004 to increase deposits, most recently including a marketing campaign to attract certificates of deposit ("CDs") and arranging the prospective acquisitions of LICB and Atlantic Bank. In addition, the Company has increased deposits by introducing MyBankingDirect.com, a nationwide online banking service; by forming The Premier Banking Group to attract deposits from local developers and property owners; and by partnering with local colleges to develop depository The place where a deposit is placed and kept, e.g., a bank, savings and loan institution, credit union, or trust company. A place where something is deposited or stored as for safekeeping or convenience, e.g., a safety deposit box. relationships with students and offering payment solutions to the colleges themselves. In anticipation of completing the LICB and Atlantic Bank acquisitions, which are expected to significantly increase the balance of low-cost core deposits, management opted to reduce certain types of deposits in the third quarter of 2005. Specifically, the Company decided to replace liquid money market accounts with more stable term deposits, and to allow the run-off run-off n (in contest, election) → desempate m (= extra race); carrera de desempate run-off n (in contest, election) → of certain brokered deposits and money-market accounts. Reflecting these actions, deposits totaled $11.1 billion at the end of September, down $402.3 million from the balance at the close of the trailing quarter, but up $733.2 million and $933.1 million, respectively, from the balances recorded at December 31 and September 30, 2004. The linked-quarter reduction was largely due to the decline in brokered deposits and the strategic run-off of certain other NOW and money market accounts. NOW and money market accounts totaled $3.1 billion at the end of September, as compared to $4.0 billion at the close of the second quarter, and to $2.9 billion and $2.5 billion, respectively, at December 31 and September 30, 2004. Savings accounts Savings Account A deposit account intended for funds that are expected to stay in for the short term. A savings account offers lower returns than the market rates. Notes: declined to $2.5 billion from $2.6 billion at the close of the second quarter and from $3.1 billion at each of the earlier dates. The linked-quarter reductions were partly offset by a $23.8 million increase in non-interest-bearing deposits and by a $590.5 million increase in CDs. Non-interest-bearing deposits totaled $771.4 million at September 30, 2005, and were up $32.1 million from the year-end 2004 balance and up $56.5 million from the September 30, 2004 amount. CDs totaled $4.8 billion at the close of the current third quarter, and were up $1.0 billion and $954.0 million, respectively, from the levels recorded at the earlier dates. Reflecting the temporary shift in deposits, core deposits (consisting of NOW and money market accounts, savings accounts, and non-interest-bearing accounts) represented 57.2% of total deposits at the close of the current third quarter, while CDs represented 42.8%. In anticipation of the LICB and Atlantic Bank acquisitions, the Company modestly increased its use of wholesale borrowings in the third quarter of 2005. Wholesale borrowings totaled $9.4 billion at the end of September, signifying Signifyin' (slang) is an African-American rhetorical device featuring indirect communication or persuasion and the creating of new meanings for old words and signs. Signifying, in this sense, includes repetition and difference, implication and association, combining words and a $190.0 million increase from the second quarter-end level, and increases of $113.8 million and $297.3 million from the levels recorded at December 31 and September 30, 2004. The Company expects to utilize the low-cost funding to be acquired in the LICB and Atlantic Bank transactions, and the cash flows produced by the sale of securities acquired in conjunction conjunction, in astronomy conjunction, in astronomy, alignment of two celestial bodies as seen from the earth. Conjunction of the moon and the planets is often determined by reference to the sun. with these transactions, to reduce its level of higher-cost wholesale funds over the next three to six months. Including junior subordinated debentures subordinated debenture An unsecured bond with a claim to assets that is subordinate to all existing and future debt. Thus, in the event that the issuer encounters financial difficulties and must be liquidated, all other claims must be satisfied before of $445.5 million and other borrowings of $358.0 million, the Company had total borrowed funds of $10.3 billion at September 30, 2005. Stockholders' Equity The Company recorded stockholders' equity of $3.3 billion at September 30, 2005, representing a $65.9 million increase from the balance recorded at December 31, 2004. The September 30, 2005 amount was equivalent to 13.00% of total assets, and a book value of $12.43 per share based on 261,654,328 shares. The year-end 2004 amount was equivalent to 13.26% of total assets, and a book value of $12.23 per share based on 260,533,784 shares. Tangible stockholders' equity (defined as total stockholders' equity less the sum of goodwill and core deposit intangibles Property that is a "right" such as a patent, Copyright, or trademark, or one that is lacking physical existence, such as good will. , "CDI CDI compact disc interactive: a system for storing a mix of software, data, audio, and compressed video for interactive use under processor control ") equaled $1.2 billion at September 30, 2005, up $88.4 million from the balance recorded at December 31, 2004. Excluding net unrealized losses on securities from the respective totals, tangible stockholders' equity equaled 5.58% and 5.39% of tangible assets at the corresponding dates. Including net unrealized losses, tangible stockholders' equity equaled 5.37% and 5.22% of tangible assets, respectively. The increase in tangible stockholders' equity reflects the $274.6 million of cash earnings generated by the Company over the nine-month period, including net income of $255.2 million and additional contributions to tangible stockholders' equity of $19.4 million. (1) During this time, the Company paid dividends totaling $195.7 million, including $65.3 million in the third quarter, and allocated $1.1 million for the repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. of 59,233 shares in stock-based benefit plan-related transactions. At September 30, 2005, there were 1,622,694 shares still available for repurchase under the Board of Directors' share repurchase Share Repurchase A program by which a company buys back its own shares from the marketplace, reducing the number of outstanding shares. This is usually an indication that the company's management thinks the shares are undervalued. authorization The right or permission to use a system resource; the process of granting access. See access control. on April 20, 2004. At September 30, 2005, the Company's capital ratios continued to exceed the minimum federal requirements for a bank holding company and the Bank's capital ratios continued to exceed the minimum levels required for classification as a "well capitalized Capitalized Recorded in asset accounts and then depreciated or amortized, as is appropriate for expenditures for items with useful lives longer than one year. " institution under the FDIC FDIC See: Federal Deposit Insurance Corporation FDIC See Federal Deposit Insurance Corporation (FDIC). Improvement Act. The Bank's Tier 1 leverage capital ratio improved to 8.76% at the close of the quarter from 8.63% at December 31, 2004. Earnings Summary for the Three Months Ended September 30, 2005 Net Interest Income The Company recorded net interest income of $135.4 million in the current third quarter, as compared to $149.1 million in the second quarter of 2005. While intermediate-term Intermediate-term Typically one-ten years. intermediate-term Of or relating to an investment with an expected holding period somewhere between short-term and long-term. interest rates began to rise, modestly, toward the end of September, short-term rates rose steadily over the course of the three-month period. As a result, the yield curve, which started to flatten flatten - To remove structural information, especially to filter something with an implicit tree structure into a simple sequence of leaves; also tends to imply mapping to flat ASCII. "This code flattens an expression with parentheses into an equivalent canonical form." in the third quarter of 2004, was essentially flat in the current third quarter; in addition, the volume of loans produced in the quarter was below the trailing-quarter volume, as expected, reflecting seasonal factors, market conditions, and the level of market interest rates. For the first time since the fourth quarter of 2004, the decline in the average balance of securities exceeded the growth in the average balance of loans. As a result of these factors, the interest income produced in the third quarter of 2005 declined to $287.9 million from $291.1 million in the second quarter of the year. The reduction was attributable to a $50.1 million decline in the average balance of interest-earning assets to $21.8 billion and a five-basis point decline in the average yield to 5.27%. While average loans rose $475.2 million during this time to $15.6 billion, the increase was offset by a $533.1 million reduction in average mortgage-related securities to $4.0 billion. At the same time, the average yield on mortgage-related securities declined to 4.20% from 4.48% in the trailing quarter, offsetting a two-basis point increase in the average yield on loans to 5.50%. While the five-year Treasury rate rose 46 basis points over the course of the quarter, the contribution of pre-payment penalties to interest income declined to $1.8 million from $2.1 million in the second quarter of the year. The modest decline in interest income in the current third quarter was coupled with a $10.4 million linked-quarter increase in interest expense, to $152.4 million. While the average balance of interest-bearing Adj. 1. interest-bearing - of financial obligations on which interest is paid liabilities declined $69.4 million to $20.8 billion, linked-quarter, the reduction was offset by a 16-basis point increase in the average cost of funds Cost of Funds The interest rate paid on an outstanding loan. Notes: Money isn't free! Cost of funds is the cost of borrowing money. See also: Interest Rate Cost of funds Interest rate associated with borrowing money. , to 2.89%. In addition to the steady rise in short-term interest rates Short-term interest rates Interest rates on loan contracts-or debt instruments such as Treasury bills, bank certificates of deposit or commerical paper-having maturities of less than one year. Often called money market rates. over the course of the quarter, the higher cost was largely due to a $500.0 million rise in average CDs to $4.4 billion and a 36-basis point increase in the average cost of such funds to 2.84%. The increase in average CDs was partly offset by a $198.2 million reduction in the average balance of core deposits to $7.0 billion and by a $310.4 million decline in the average balance of borrowed funds to $10.1 billion. Despite the reduction in the average balances of these funding sources, the average cost of core deposits rose 13 basis points to 1.43% and the average cost of borrowed funds rose 10 basis points to 3.74%. Reflecting the same combination of factors that contributed to the linked-quarter reduction in net interest income, the Company's net interest margin narrowed to 2.52% in the current third quarter from 2.73% in the trailing three-month period. To reduce its exposure to future short-term interest rate increases, the Company has taken a series of actions in 2005, including paying down most of its short-term wholesale borrowings in the first and second quarters, and extending an additional $2.0 billion of wholesale borrowings to an average maturity of two years with an average cost of 3.37% during the same time. In addition, management expects that the addition of LICB and Atlantic's lower-cost core deposits will benefit the Company's net interest margin. Non-interest Income Non-interest income largely consists of fee income, which generally includes retail deposit fees, charges on loans, and prepayment penalties; and other income, which primarily includes the revenues produced through the sale of third-party investment products, and the income generated by the Company's investment in Bank-owned Life Insurance ("BOLI BOLI Bank-Owned Life Insurance BOLI Bureau of Labor and Industries ") and by its investment advisory firm, Peter B. Cannell & Co., Inc. ("PBC PBC 1 Peripheral blood cells 2 Primary biliary cirrhosis, see there "). In the third quarter of 2005, the Company recorded non-interest income of $33.1 million, signifying a $3.2 million increase from the level recorded in the second quarter of the year. The increase was fueled by a rise in fee income, which was attributable to an $8.3 million increase in prepayment penalties to $11.4 million, stemming stemming - stemmer from a rise in refinancing Refinancing An extension and/or increase in amount of existing debt. activity. Fee income totaled $19.8 million in the current third quarter, signifying an $8.7 million, or 79.0%, increase from the level recorded in the trailing three-month period. Other income totaled $13.2 million in the third quarter of 2005, as compared to $16.0 million in the second quarter of the year. The Company recorded a $2.8 million gain on the sale of loans in the trailing quarter, which accounted for the linked-quarter decline. BOLI income represented $5.5 million of third quarter 2005 other income, as compared to $6.2 million in the trailing three months. PBC revenues rose $557,000 during this time, to $3.1 million, offsetting a $350,000 decline in revenues from the sale of third-party investment products to $1.8 million. Non-interest Expense Non-interest expense consists of operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. , which include compensation and benefits, occupancy Gaining or having physical possession of real property subject to, or in the absence of, legal right or title. In a fire insurance policy, for example, the term occupancy and equipment, general and administrative ("G&A"), and other expenses; and the amortization of the CDI stemming from the Company's mergers with Richmond County Richmond County may refer to multiple places: In Canada:
Roslyn may refer to: In places:
In the third quarter of 2005, the Company recorded total non-interest expense of $53.2 million, as compared to $52.2 million in the second quarter of the year. Operating expenses represented $50.2 million of the third quarter 2005 total and 0.80% of average assets, as compared to $49.3 million, representing 0.79% of average assets, in the trailing three-month period. The linked-quarter increase in operating expenses stemmed stemmed adj. 1. Having the stems removed. 2. Provided with a stem or a specific type of stem. Often used in combination: stemmed goblets; long-stemmed roses. from two components: an $898,000 increase in compensation and benefits expense to $26.1 million and a $997,000 increase in G&A expense to $12.1 million. The increase in compensation and benefits expense primarily reflects additional costs relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc retail operations, including incentive compensation for PBC officers, while the increase in G&A expense largely reflects the costs of the Bank's deposit-gathering initiatives. These increases were partly offset by a $199,000 decline in occupancy and equipment expense to $10.9 million and a $772,000 reduction in other expenses to $1.2 million. Income Tax Expense Income tax expense totaled $37.7 million in the current third quarter, down from $40.3 million in the second quarter of 2005. Pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta income totaled $115.3 million and $126.8 million in the respective quarters, while the effective tax rate equaled 32.7% and 31.8%, respectively. In the second quarter of 2005, the Company received a New Markets Tax Credit allocation The apportionment or designation of an item for a specific purpose or to a particular place. In the law of trusts, the allocation of cash dividends earned by a stock that makes up the principal of a trust for a beneficiary usually means that the dividends will be treated as , which has entitled en·ti·tle tr.v. en·ti·tled, en·ti·tling, en·ti·tles 1. To give a name or title to. 2. To furnish with a right or claim to something: the Company to recognize $16.4 million in tax credits from the U.S. Treasury U.S. Treasury Created in 1798, the United States Department of the Treasury is the government (Cabinet) department responsible for issuing all Treasury bonds, notes and bills. Some of the government branches operating under the U.S. Treasury umbrella include the IRS, U.S. Department over a period of seven years. Company Profile New York Community Bancorp, Inc. is the holding company for New York Community Bank
New York Community Bank is the banking division of the publicly traded company New York Community Bancorp. and the fifth largest thrift thrift: see leadwort. in the nation, with total assets of $25.0 billion at September 30, 2005. The Bank serves its customers through a network of 141 banking offices in New York City, Long Island, Westchester Westchester is the name of some places in the United States of America:
Roosevelt, uninc. residential town (1990 pop. 15,030), Nassau co., SE N.Y., on Long Island. A large retail business exists in Roosevelt, and the town has become the county's busiest economic area. Savings Bank, CFS CFS abbr. chronic fatigue syndrome CFS, n.pr See syndrome, chronic fatigue. CFS Chronic fatigue syndrome, see there Bank, First Savings Bank of New Jersey, and Ironbound i·ron·bound adj. 1. Bound with iron. 2. Rigid and unyielding: an ironbound moral code. 3. Bound with rocks and cliffs: ironbound coasts. Bank. The Bank is the leading producer of multi-family mortgage loans for portfolio in New York City and the third largest thrift depository in the New York metropolitan region. Additional information about the Company is available at www.myNYCB.com. Post-Earnings Release Conference Call The Company will host a conference call on October October: see month. 19, 2005 at 9:30 a.m. (ET) to discuss the highlights of its third quarter 2005 performance and the anticipated benefits of its prospective acquisitions of LICB and Atlantic Bank. The conference call may be accessed by phoning 800-946-0713 (for domestic calls) or 719-457-2642 (for international calls) and providing the following access code: 7851341. A replay of the conference call will be available through midnight on October 28th, and may be accessed by calling 888-203-1112 (domestic) or 719-457-0820 (international) and providing the same access code. The conference call will also be webcast, and may be accessed by visiting the Company's web site, www.myNYCB.com, clicking on "Investor Relations Investor relations The process by which the corporation communicates with its investors. ," and following the prompts. The web cast will be archived approximately two hours following completion of the call through 5:00 p.m. on November November: see month. 2, 2005. New York Community Bancorp, Inc. has filed a registration statement with the Securities and Exchange Commission (the "SEC") containing a proxy See proxy server. (networking) proxy - A process that accepts requests for some service and passes them on to the real server. A proxy may run on dedicated hardware or may be purely software. statement/prospectus and other documents regarding its proposed transaction with Long Island Financial Corp. Investors are urged to read the proxy statement/prospectus because it contains important information about New York Community Bancorp, Inc. and Long Island Financial Corp., and the prospective transaction. Copies of this proxy statement/prospectus have been mailed to Long Island Financial Corp. shareholders and, together with other documents filed by New York Community Bancorp, Inc. or Long Island Financial Corp. with the SEC, may be obtained free of charge at the SEC's website (www.sec.gov See .gov and GovNet. (networking) gov - The top-level domain for US government bodies. ) or by directing a request to New York Community Bancorp, Inc. c/o the Investor Relations Department, 615 Merrick Merrick, uninc. city (1990 pop. 23,042), Nassau co., SE N.Y., on Long Island. Although chiefly residential, it has some light manufacturing. Avenue, Westbury, N.Y. 11590 or the Corporate Secretary, Long Island Financial Corp., 1601 Veterans Highway, Suite 120, Islandia Islandia could refer to:
Long Island Financial Corp. and its directors, executive officers and certain other members of management, and employees may be soliciting proxies from their shareholders in favor of upon the side of; favorable to; for the advantage of. See also: favor the proposed transaction. Information regarding such persons who may, under the rules of the SEC, be considered to be participants in the solicitation solicitation In criminal law, the act of asking, inducing, or directing someone to commit a crime. The person soliciting another becomes an accomplice to the crime. The term also refers to the act of obtaining bribes, as well as to the crime of a prostitute who offers sexual of Long Island Financial Corp.'s shareholders in connection with the proposed transaction is set forth in Long Island Financial Corp.'s proxy statement Proxy Statement A document containing the information that a company is required by the SEC to provide to shareholders so they can make informed decisions about matters that will be brought up at an annual stockholder meeting. filed with the SEC on March 25, 2005 relating to its annual meeting of shareholders held on April 20, 2005. Additional information is set forth in the proxy statement/prospectus filed with the SEC. Forward-looking Statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. and Associated Risk Factors This release and the associated conference call, like other written and oral communications presented by the Company and its authorized au·thor·ize tr.v. au·thor·ized, au·thor·iz·ing, au·thor·iz·es 1. To grant authority or power to. 2. To give permission for; sanction: officers, may contain certain forward-looking statements regarding the Company's prospective performance and strategies within the meaning of Section 27A of the Securities Act of 1933, as amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. , and Section 21E of the Securities Exchange Act of 1934, as amended. The Company intends such forward-looking statements to be covered by the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions for forward-looking statements contained in the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995, and is including this statement for purposes of said safe harbor provisions. Forward-looking statements, which are based on certain assumptions and describe future plans, strategies, and expectations of the Company, are generally identified by use of the words "anticipate," "believe," "estimate," "expect," "intend," "plan," "project," "seek," "strive," "try," or future or conditional Subject to change; dependent upon or granted based on the occurrence of a future, uncertain event. A conditional payment is the payment of a debt or obligation contingent upon the performance of a certain specified act. verbs such as "will," "would," "should," "could," "may," or similar expressions. The Company's ability to predict results or the actual effects of its plans or strategies is inherently uncertain. Accordingly, actual results may differ materially from anticipated results. There are a number of factors, many of which are beyond the Company's control, that could cause actual conditions, events, or results to differ significantly from those described in the forward-looking statements. These factors include, but are not limited to, general economic conditions, either nationally or locally in some or all of the areas in which we conduct our business; conditions in the securities markets or the banking industry; changes in interest rates, which may affect our net income or future cash flows; changes in deposit flows, and in the demand for deposit, loan, and investment products and other financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. in our local markets; changes in real estate values, which could impact the quality of the assets securing our loans; changes in the quality or composition of the loan or investment portfolios; changes in competitive pressures among financial institutions or from non-financial institutions; the ability to successfully integrate any assets, liabilities, customers, systems, and management personnel we may acquire into our operations and our ability to realize related revenue synergies and cost savings within expected time frames; the Company's timely development of new and competitive products or services in a changing environment, and the acceptance of such products or services by our customers; the outcome of pending or threatened litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. or of other matters before regulatory agencies regulatory agency Independent government commission charged by the legislature with setting and enforcing standards for specific industries in the private sector. The concept was invented by the U.S. , whether currently existing or commencing in the future; changes in accounting principles, policies, practices, or guidelines guidelines, n.pl a set of standards, criteria, or specifications to be used or followed in the performance of certain tasks. ; changes in legislation and regulation; operational issues and/or and/or conj. Used to indicate that either or both of the items connected by it are involved. Usage Note: And/or is widely used in legal and business writing. capital spending capital spending Spending for long-term assets such as factories, equipment, machinery, and buildings that permits the production of more goods and services in future years. necessitated by the potential need to adapt to industry changes in information technology systems, on which we are highly dependent; changes in the monetary and fiscal policies of the U.S. Government, including policies of the U.S. Treasury and the Federal Reserve Board; war or terrorist activities; and other economic, competitive, governmental, regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. , and geopolitical ge·o·pol·i·tics n. (used with a sing. verb) 1. The study of the relationship among politics and geography, demography, and economics, especially with respect to the foreign policy of a nation. 2. a. factors affecting the Company's operations, pricing, and services. Additionally, the timing and occurrence or non-occurrence of events may be subject to circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or beyond the Company's control. In addition, the following factors, among others, could cause the actual results of the transactions with Long Island Financial Corp. and Atlantic Bank of New York to differ materially from the expectations stated in this release and the associated conference call: the ability of the companies involved to obtain the required regulatory approvals; the ability of the companies involved to consummate To carry into completion; to fulfill; to accomplish. A Common-Law Marriage is consummated when the parties live in a manner intended to bring about public recognition of their relationship as Husband and Wife. the transactions; a materially adverse change in the financial condition of New York Community Bancorp, Inc., Long Island Financial Corp., or Atlantic Bank of New York; the ability of New York Community Bancorp, Inc. to successfully integrate the assets, liabilities, customers, systems, and any management personnel it may acquire into its operations pursuant to the transactions; and the ability to realize the related revenue synergies and cost savings within the expected time frames. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release and the associated conference call. Except as required by applicable law or regulation, the Company undertakes no obligation to update these forward-looking statements to reflect events or circumstances that occur after the date on which such statements were made. (1) Please see the discussion and reconciliation of GAAP and cash earnings on page 14 of this release.
NEW YORK COMMUNITY BANCORP, INC.
CONSOLIDATED STATEMENTS OF CONDITION
(in thousands, except share data)
September 30, December 31,
2005 2004
(unaudited)
------------- -------------
Assets
Cash and due from banks $ 204,887 $ 188,850
Securities available for sale:
Mortgage-related securities 2,081,894 2,901,039
Other securities 189,827 207,070
Securities held to maturity:
Mortgage-related securities (fair market
value of $1,647,130 and $2,091,748,
respectively) 1,726,551 2,166,416
Other securities (fair market value of
$1,673,644 and $1,826,063, respectively) 1,651,355 1,806,198
------------- -------------
Total securities 5,649,627 7,080,723
Mortgage loans:
Multi-family 11,994,019 9,842,444
Commercial real estate 2,610,979 2,140,727
Construction 900,266 804,219
1-4 family 266,806 506,116
------------- ------------
Total mortgage loans 15,772,070 13,293,506
Other loans 83,466 102,538
------------- -------------
Total loans 15,855,536 13,396,044
Less: Allowance for loan losses (78,043) (78,057)
------------- -------------
Loans, net 15,777,493 13,317,987
Federal Home Loan Bank of New York stock,
at cost 312,694 232,215
Premises and equipment, net 138,035 148,263
Goodwill 1,937,680 1,951,438
Core deposit intangibles 78,750 87,553
Other assets 915,778 1,030,797
------------- -------------
Total assets $ 25,014,944 $ 24,037,826
============= =============
Liabilities and Stockholders' Equity
Deposits:
NOW and money market accounts $ 3,146,858 $ 2,850,218
Savings accounts 2,455,166 3,060,334
Certificates of deposit 4,761,873 3,752,327
Non-interest-bearing accounts 771,382 739,238
------------- -------------
Total deposits 11,135,279 10,402,117
------------- -------------
Official checks outstanding 40,047 16,831
Borrowed funds:
Wholesale borrowings 9,448,793 9,334,953
Junior subordinated debentures 445,525 446,084
Other borrowings 358,048 361,504
------------- -------------
Total borrowed funds 10,252,366 10,142,541
Mortgagors' escrow 101,155 54,555
Other liabilities 233,802 235,368
------------- -------------
Total liabilities 21,762,649 20,851,412
------------- -------------
Stockholders' equity:
Preferred stock at par $0.01 (5,000,000
shares authorized; none issued) -- --
Common stock at par $0.01 (600,000,000
shares authorized; 273,396,452
shares issued; 266,010,822 and
265,190,635 shares outstanding,
respectively) 2,734 2,734
Paid-in capital in excess of par 3,019,445 3,013,241
Retained earnings (partially restricted) 505,332 452,134
Less: Treasury stock (7,385,630 and
8,205,817 shares, respectively) (207,812) (223,230)
Unallocated common stock held by
ESOP (13,711) (14,655)
Common stock held by SERP and
Deferred Compensation Plans (3,113) (3,113)
Net unrealized loss on securities
available for sale, net of tax (36,751) (20,443)
Net unrealized loss on securities
transferred to held to maturity, net of
tax (13,829) (20,254)
------------- -------------
Total stockholders' equity 3,252,295 3,186,414
------------- -------------
Total liabilities and stockholders' equity $ 25,014,944 $ 24,037,826
============= =============
NEW YORK COMMUNITY BANCORP, INC.
CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share data)
(unaudited)
For the Nine
For the Three Months Ended Months Ended
----------------------------- -------------------
September June September September September
30, 30, 30, 30, 30,
2005 2005 2004 2005 2004
--------- --------- --------- --------- ---------
Interest Income:
Mortgage and other
loans $215,251 $207,826 $167,713 $611,369 $484,734
Mortgage-related
securities 42,354 51,139 75,332 153,490 313,249
Other securities 30,050 32,027 34,474 95,978 104,287
Money market
investments 217 137 79 558 376
--------- --------- --------- --------- ---------
Total interest
income 287,872 291,129 277,598 861,395 902,646
--------- --------- --------- --------- ---------
Interest Expense:
NOW and money
market accounts 22,087 20,015 6,725 54,493 18,944
Savings accounts 3,061 3,346 4,677 10,410 12,208
Certificates of
deposit 31,285 24,049 14,557 75,422 32,271
Borrowed funds 95,939 94,521 79,580 277,550 218,306
Mortgagors' escrow 60 67 66 193 181
--------- --------- --------- --------- ---------
Total interest
expense 152,432 141,998 105,605 418,068 281,910
--------- --------- --------- --------- ---------
Net interest
income 135,440 149,131 171,993 443,327 620,736
Provision for loan
losses -- -- -- -- --
--------- --------- --------- --------- ---------
Net interest
income after
provision for
loan losses 135,440 149,131 171,993 443,327 620,736
--------- --------- --------- --------- ---------
Non-interest Income
(Loss):
Fee income 19,779 11,049 13,915 43,739 45,873
Net securities
gains (losses) 83 2,868 412 2,999 (146,859)
Other 13,200 15,969 12,182 48,218 38,742
--------- --------- --------- --------- ---------
Total non-interest
income (loss) 33,062 29,886 26,509 94,956 (62,244)
--------- --------- --------- --------- ---------
Non-interest
Expense:
Operating expenses:
Compensation and
benefits 26,057 25,159 23,254 76,617 72,049
Occupancy and
equipment 10,886 11,085 10,834 33,359 30,142
General and
administrative 12,116 11,119 11,235 35,223 34,180
Other 1,181 1,953 2,134 4,990 5,784
--------- --------- --------- --------- ---------
Total operating
expenses 50,240 49,316 47,457 150,189 142,155
Amortization of
core deposit
intangibles 2,930 2,930 2,860 8,803 8,580
--------- --------- --------- --------- ---------
Total non-interest
expense 53,170 52,246 50,317 158,992 150,735
--------- --------- --------- --------- ---------
Income before income
taxes 115,332 126,771 148,185 379,291 407,757
Income tax expense 37,717 40,299 49,353 124,122 136,147
--------- --------- --------- --------- ---------
Net Income $ 77,615 $ 86,472 $ 98,832 $255,169 $271,610
========= ========= ========= ========= =========
Basic earnings
per share $0.30 $0.33 $0.38 $0.98 $1.05
========= ========= ========= ========= =========
Diluted
earnings per
share $0.30 $0.33 $0.38 $0.97 $1.01
========= ========= ========= ========= =========
NEW YORK COMMUNITY BANCORP, INC.
DISCUSSION AND RECONCILIATION OF GAAP AND CASH EARNINGS
Although cash earnings are not a measure of performance calculated in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with GAAP, the Company believes that cash earnings are an important measure because of their contribution to tangible stockholders' equity. (1) The Company calculates cash earnings by adding back to net income certain items that have been charged against earnings, net of income taxes, but that have been added back to tangible stockholders' equity. These items typically fall into four categories: expenses related to the amortization and appreciation of shares held in the Company's stock-related benefit plan; the associated tax benefits; dividends on unallocated ESOP ESOP See: Employee Stock Ownership Plan ESOP See Employee Stock Ownership Plan (ESOP). shares; and the amortization of the CDI stemming from the Company's mergers with Roslyn Bancorp, Inc. and Richmond County Financial Corp. on October 31, 2003 and July July: see month. 31, 2001, respectively. Unlike other expenses incurred by the Company, the aforementioned a·fore·men·tioned adj. Mentioned previously. n. The one or ones mentioned previously. aforementioned Adjective mentioned before Adj. 1. charges do not reduce the Company's tangible stockholders' equity. For this reason, the Company believes that cash earnings are useful to investors seeking to evaluate its operating performance and to compare its performance with other companies in the banking industry that also report cash earnings. Cash earnings should not be considered in isolation or as a substitute for net income, cash flows from operating activities, or other income or cash flow statement data prepared in accordance with GAAP. Moreover, the manner in which the Company calculates cash earnings may differ from that of other companies reporting measures with similar names. A reconciliation of the Company's GAAP and cash earnings for the three months ended September 30, 2005, June 30, 2005, and September 30, 2004 and the nine months ended September 30, 2005 and 2004 follows:
For the Nine
For the Three Months Ended Months Ended
----------------------------- -------------------
Sept. 30, June 30, Sept. 30, Sept. 30, Sept. 30,
(in thousands,
except per
share data) 2005 2005 2004 2005 2004
--------- --------- --------- --------- ---------
Net income $77,615 $86,472 $ 98,832 $255,169 $271,610
Additional
contributions to
tangible
stockholders'
equity:
Amortization and
appreciation of
shares held in
stock-related
benefit plan 1,775 1,792 2,132 5,411 7,463
Associated tax
benefits 346 242 840 1,737 26,371
Dividends on
unallocated ESOP
shares 1,164 1,164 1,268 3,492 3,599
Amortization of
core deposit
intangibles 2,930 2,930 2,860 8,803 8,580
--------- --------- --------- --------- ---------
Total additional
contributions to
tangible
stockholders'
equity 6,215 6,128 7,100 19,443 46,013
--------- --------- --------- --------- ---------
Cash earnings $83,830 $92,600 $105,932 $274,612 $317,623
========= ========= ========= ========= =========
Adjustments to cash
earnings:
Net loss on sale
of securities
relating to
balance sheet
repositioning -- -- -- -- 157,215
Income tax
benefit on
adjustment -- -- -- -- (62,336)
--------- --------- --------- --------- ---------
Cash earnings
excluding
repositioning
charge $83,830 $92,600 $105,932 $274,612 $412,502
========= ========= ========= ========= =========
CASH EARNINGS DATA:
Basic cash earnings
per share $0.32 $0.36 $0.41 $1.06 $1.22
Diluted cash
earnings per share 0.32 0.35 0.40 1.05 1.18
Cash return on
average assets 1.34% 1.48% 1.78% 1.48% 1.67%
Cash return on
average tangible
assets 1.46 1.61 1.94 1.61 1.81
Cash return on
average
stockholders'
equity 10.42 11.54 13.83 11.45 13.37
Cash return on
average tangible
stockholders'
equity 27.98 31.13 41.59 31.20 37.48
Cash efficiency
ratio 28.76 26.55 22.83 26.90 24.12
CASH EARNINGS DATA
EXCLUDING 2Q 2004
REPOSITIONING
CHARGE:
Basic cash earnings
per share $1.59
Diluted cash
earnings per share 1.54
Cash return on
average assets 2.16%
Cash return on
average tangible
assets 2.35
Cash return on
average
stockholders'
equity 17.37
Cash return on
average tangible
stockholders'
equity 48.68
Cash efficiency
ratio 18.82
(1) Tangible stockholders' equity is calculated by subtracting the sum
of goodwill and CDI from total stockholders' equity.
NEW YORK COMMUNITY BANCORP, INC.
NET INTEREST INCOME ANALYSIS
(dollars in thousands)
(unaudited)
Three Months Ended
--------------------------------------
September 30, 2005
--------------------------------------
Average
Average Yield/
Balance Interest Cost
------------ ------------ ------------
Assets:
Interest-earning assets:
Mortgage and other loans,
net $15,634,545 $215,251 5.50%
Mortgage-related securities 4,031,985 42,354 4.20
Other securities 2,142,098 30,050 5.61
Money market investments 29,893 217 2.88
------------ ------------ ------------
Total interest-earning assets 21,838,521 287,872 5.27
Non-interest-earning assets 3,171,742
------------
Total assets $25,010,263
============
Liabilities and Stockholders'
Equity:
Interest-bearing deposits:
NOW and money market
accounts $ 3,683,615 $ 22,087 2.38%
Savings accounts 2,540,224 3,061 0.48
Certificates of deposit 4,371,220 31,285 2.84
Mortgagors' escrow 86,253 60 0.28
------------ ------------ ------------
Total interest-bearing deposits 10,681,312 56,493 2.10
Borrowed funds 10,070,162 95,939 3.74
------------ ------------ ------------
Total interest-bearing
liabilities 20,751,474 152,432 2.89
Non-interest-bearing deposits 742,346
Other liabilities 299,650
------------
Total liabilities 21,793,470
Stockholders' equity 3,216,793
------------
Total liabilities and
stockholders' equity $25,010,263
============
Net interest income/interest
rate spread $135,440 2.38%
============ ============
Net interest-earning assets/net
interest margin $1,087,047 2.52%
============ ============
Ratio of interest-earning
assets to interest-bearing
liabilities 1.05x
============
Core deposits $6,966,185 $25,148 1.43%
============ ============ ============
Three Months Ended
--------------------------------------
June 30, 2005
--------------------------------------
Average
Average Yield/
Balance Interest Cost
------------ ------------ ------------
Assets:
Interest-earning assets:
Mortgage and other loans,
net $15,159,345 $207,826 5.48%
Mortgage-related securities 4,565,084 51,139 4.48
Other securities 2,138,316 32,027 5.99
Money market investments 25,839 137 2.12
------------ ------------ ------------
Total interest-earning assets 21,888,584 291,129 5.32
Non-interest-earning assets 3,183,082
------------
Total assets $25,071,666
============
Liabilities and Stockholders'
Equity:
Interest-bearing deposits:
NOW and money market
accounts $ 3,716,640 $ 20,015 2.15%
Savings accounts 2,711,365 3,346 0.49
Certificates of deposit 3,871,262 24,049 2.48
Mortgagors' escrow 141,046 67 0.19
------------ ------------ ------------
Total interest-bearing deposits 10,440,313 47,477 1.82
Borrowed funds 10,380,575 94,521 3.64
------------ ------------ ------------
Total interest-bearing
liabilities 20,820,888 141,998 2.73
Non-interest-bearing deposits 736,350
Other liabilities 303,490
------------
Total liabilities 21,860,728
Stockholders' equity 3,210,938
------------
Total liabilities and
stockholders' equity $25,071,666
============
Net interest income/interest
rate spread $149,131 2.59%
============ ============
Net interest-earning assets/net
interest margin $1,067,696 2.73%
============ ============
Ratio of interest-earning
assets to interest-bearing
liabilities 1.05x
============
Core deposits $7,164,355 $23,361 1.30%
============ ============ ============
NEW YORK COMMUNITY BANCORP, INC.
NET INTEREST INCOME ANALYSIS
(dollars in thousands)
(unaudited)
Three Months Ended September 30,
--------------------------------------
2005
--------------------------------------
Average
Average Yield/
Balance Interest Cost
------------ ------------ ------------
Assets:
Interest-earning assets:
Mortgage and other loans,
net $15,634,545 $215,251 5.50%
Mortgage-related securities 4,031,985 42,354 4.20
Other securities 2,142,098 30,050 5.61
Money market investments 29,893 217 2.88
------------ ------------ ------------
Total interest-earning assets 21,838,521 287,872 5.27
Non-interest-earning assets 3,171,742
------------
Total assets $25,010,263
============
Liabilities and Stockholders'
Equity:
Interest-bearing deposits:
NOW and money market
accounts $ 3,683,615 $ 22,087 2.38%
Savings accounts 2,540,224 3,061 0.48
Certificates of deposit 4,371,220 31,285 2.84
Mortgagors' escrow 86,253 60 0.28
------------ ------------ ------------
Total interest-bearing deposits 10,681,312 56,493 2.10
Borrowed funds 10,070,162 95,939 3.74
------------ ------------ ------------
Total interest-bearing
liabilities 20,751,474 152,432 2.89
Non-interest-bearing deposits 742,346
Other liabilities 299,650
------------
Total liabilities 21,793,470
Stockholders' equity 3,216,793
------------
Total liabilities and
stockholders' equity $25,010,263
============
Net interest income/interest
rate spread $135,440 2.38%
============ ============
Net interest-earning assets/net
interest margin $1,087,047 2.52%
============ ============
Ratio of interest-earning
assets to interest-bearing
liabilities 1.05x
============
Core deposits $6,966,185 $25,148 1.43%
============ ============ ============
Three Months Ended September 30,
--------------------------------------
2004
--------------------------------------
Average
Average Yield/
Balance Interest Cost
------------ ------------ ------------
Assets:
Interest-earning assets:
Mortgage and other loans,
net $12,095,799 $167,713 5.55%
Mortgage-related securities 6,011,255 75,332 5.01
Other securities 2,433,443 34,474 5.67
Money market investments 30,165 79 1.05
------------ ------------ ------------
Total interest-earning assets 20,570,662 277,598 5.40
Non-interest-earning assets 3,290,315
------------
Total assets $23,860,977
============
Liabilities and Stockholders'
Equity:
Interest-bearing deposits:
NOW and money market
accounts $ 2,551,665 $ 6,725 1.05%
Savings accounts 3,015,101 4,677 0.62
Certificates of deposit 3,846,389 14,557 1.51
Mortgagors' escrow 67,762 66 0.39
------------ ------------ ------------
Total interest-bearing deposits 9,480,917 26,025 1.10
Borrowed funds 10,386,390 79,580 3.06
------------ ------------ ------------
Total interest-bearing
liabilities 19,867,307 105,605 2.13
Non-interest-bearing deposits 726,148
Other liabilities 204,366
------------
Total liabilities 20,797,821
Stockholders' equity 3,063,156
------------
Total liabilities and
stockholders' equity $23,860,977
============
Net interest income/interest
rate spread $171,993 3.27%
============ ============
Net interest-earning assets/net
interest margin $703,355 3.34%
============ ============
Ratio of interest-earning
assets to interest-bearing
liabilities 1.04x
============
Core deposits $6,292,914 $11,402 0.72%
============ ============ ============
NEW YORK COMMUNITY BANCORP, INC.
NET INTEREST INCOME ANALYSIS
(dollars in thousands)
(unaudited)
Nine Months Ended September 30,
--------------------------------------
2005
--------------------------------------
Average
Average Yield/
Balance Interest Cost
------------ ------------ ------------
Assets:
Interest-earning assets:
Mortgage and other loans,
net $14,855,006 $611,369 5.49%
Mortgage-related securities 4,517,406 153,490 4.53
Other securities 2,161,131 95,978 5.92
Money market investments 29,009 558 2.57
------------ ------------ ------------
Total interest-earning assets 21,562,552 861,395 5.33
Non-interest-earning assets 3,218,251
------------
Total assets $24,780,803
============
Liabilities and Stockholders'
Equity:
Interest-bearing deposits:
NOW and money market
accounts $ 3,470,270 $ 54,493 2.10%
Savings accounts 2,723,074 10,410 0.51
Certificates of deposit 3,995,786 75,422 2.52
Mortgagors' escrow 105,665 193 0.24
------------ ------------ ------------
Total interest-bearing deposits 10,294,795 140,518 1.82
Borrowed funds 10,250,119 277,550 3.57
------------ ------------ ------------
Total interest-bearing
liabilities 20,544,914 418,068 2.70
Non-interest-bearing deposits 735,791
Other liabilities 301,084
------------
Total liabilities 21,581,789
Stockholders' equity 3,199,014
------------
Total liabilities and
stockholders' equity $24,780,803
============
Net interest income/interest
rate spread $443,327 2.63%
============ ============
Net interest-earning assets/net
interest margin $1,017,638 2.76%
============ ============
Ratio of interest-earning
assets to interest-bearing
liabilities 1.05x
============
Core deposits $6,929,135 $64,903 1.25%
============ ============ ============
Nine Months Ended September 30,
--------------------------------------
2004
--------------------------------------
Average
Average Yield/
Balance Interest Cost
------------ ------------ ------------
Assets:
Interest-earning assets:
Mortgage and other loans,
net $11,267,414 $484,734 5.74%
Mortgage-related securities 8,279,071 313,249 5.04
Other securities 2,474,345 104,287 5.62
Money market investments 24,611 376 2.04
------------ ------------ ------------
Total interest-earning assets 22,045,441 902,646 5.46
Non-interest-earning assets 3,363,653
------------
Total assets $25,409,094
============
Liabilities and Stockholders'
Equity:
Interest-bearing deposits:
NOW and money market
accounts $ 2,478,170 $ 18,944 1.02%
Savings accounts 2,914,385 12,208 0.56
Certificates of deposit 3,916,079 32,271 1.10
Mortgagors' escrow 78,976 181 0.31
------------ ------------ ------------
Total interest-bearing deposits 9,387,610 63,604 0.90
Borrowed funds 11,935,988 218,306 2.44
------------ ------------ ------------
Total interest-bearing
liabilities 21,323,598 281,910 1.76
Non-interest-bearing deposits 702,044
Other liabilities 216,430
------------
Total liabilities 22,242,072
Stockholders' equity 3,167,022
------------
Total liabilities and
stockholders' equity $25,409,094
============
Net interest income/interest
rate spread $620,736 3.70%
============ ============
Net interest-earning assets/net
interest margin $721,843 3.75%
============ ============
Ratio of interest-earning
assets to interest-bearing
liabilities 1.03x
============
Core deposits $6,094,599 $31,152 0.68%
============ ============ ============
NEW YORK COMMUNITY BANCORP, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(dollars in thousands, except share and per share data)
(unaudited)
For the Three Months Ended
-----------------------------------------
Sept. 30, June 30, Sept. 30,
2005 2005 2004
------------- ------------- -------------
GAAP EARNINGS DATA:
Net income $77,615 $86,472 $98,832
Basic earnings per share 0.30 0.33 0.38
Diluted earnings per share 0.30 0.33 0.38
Return on average assets 1.24% 1.38% 1.66%
Return on average tangible
assets (1) 1.38 1.53 1.84
Return on average
stockholders' equity 9.65 10.77 12.91
Return on average tangible
stockholders' equity (1) 26.49 29.66 39.48
Efficiency ratio 29.82 27.55 23.91
Operating expenses to
average assets 0.80 0.79 0.80
Interest rate spread 2.38 2.59 3.27
Net interest margin 2.52 2.73 3.34
Shares used for basic EPS
computation 260,580,328 260,203,948 259,123,652
Shares used for diluted EPS
computation 262,615,785 262,349,662 262,473,373
For the Nine Months Ended
---------------------------
Sept. 30, Sept. 30,
2005 2004
------------- -------------
GAAP EARNINGS DATA:
Net income $255,169 $271,610
Basic earnings per share 0.98 1.05
Diluted earnings per share 0.97 1.01
Return on average assets 1.37% 1.43%
Return on average tangible assets (1) 1.53 1.58
Return on average stockholders' equity 10.64 11.43
Return on average tangible stockholders'
equity (1) 29.59 32.66
Efficiency ratio 27.90 25.45
Operating expenses to average assets 0.81 0.75
Interest rate spread 2.63 3.70
Net interest margin 2.76 3.75
Shares used for basic EPS computation 260,221,487 259,909,843
Shares used for diluted EPS computation 262,363,539 268,120,962
EARNINGS DATA EXCLUDING 2Q 2004
REPOSITIONING CHARGE (2) :
Net income $366,489
Basic earnings per share 1.41
Diluted earnings per share 1.37
Return on average assets 1.92%
Return on average tangible assets (1) 2.12
Return on average stockholders' equity 15.43
Return on average tangible stockholders'
equity (1) 43.86
Efficiency ratio (3) 19.86
At At
September 30, December 31,
2005 2004
-------------- --------------
BALANCE SHEET DATA:
Book value per share $12.43 $12.23
Tangible book value per share 4.72 4.40
Stockholders' equity to total assets 13.00% 13.26%
Tangible stockholders' equity to tangible
assets (1) 5.37 5.22
Tangible stockholders' equity to tangible
assets excluding net unrealized losses
on securities (1) 5.58 5.39
Shares used for book value computation 261,654,328 260,533,784
Total shares issued and outstanding 266,010,822 265,190,635
ASSET QUALITY RATIOS:
Non-performing loans to total loans 0.22% 0.21%
Non-performing assets to total assets 0.14 0.12
Allowance for loan losses to
non-performing loans 227.23 277.31
Allowance for loan losses to total loans 0.49 0.58
(1) Tangible assets and tangible stockholders' equity are calculated
by subtracting from total assets and total stockholders' equity
the sum of goodwill and CDI. Average tangible assets and average
tangible stockholders' equity are calculated by subtracting from
average assets and average stockholders' equity the sum of average
goodwill and average CDI.
(2) Amounts for the nine months ended September 30, 2004 exclude the
impact of a $94.9 million, or $0.35 per diluted share, after-tax
loss on the sale of securities relating to the repositioning of
the balance sheet (the "repositioning charge").
(3) The ratio for the nine months ended September 30, 2004 excludes a
$157.2 million net loss on the sale of securities relating to the
balance sheet repositioning.
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