Exhibit 99.1
New York Community Bancorp, Inc. Reports 3rd Quarter 2004 Diluted GAAP
EPS of $0.38 and Diluted Cash EPS of $0.40 (1);
2004 Diluted GAAP EPS Projected to Range from $1.34 to $1.36
WESTBURY, N.Y.--(BUSINESS WIRE)--Oct. 20, 2004--
Board Declares $0.25 Per Share Dividend
3rd Quarter 2004 Highlights
- ----------------------------------------------------------------------
-- Loan originations totaled $1.5 billion, including $1.1
billion of multi-family loans
-- Multi-family loans grew at an annualized rate of
32.2%, to $9.2 billion
-- Deposits grew at an annualized rate of 7.4%, to $10.2
billion
-- Core deposits represented 63% of total deposits at
quarter-end
-- Securities declined $945 million to $7.5 billion,
representing 31.8% of total assets
-- Wholesale borrowings declined $773 million to $9.2
billion, representing 38.7% of total assets
-- Tangible stockholders' equity equaled 5.12% of
tangible assets, up 61 basis points, linked-quarter
-- NPAs equaled 0.12% of total assets
-- The efficiency ratio equaled 23.91%
- ----------------------------------------------------------------------
New York Community Bancorp, Inc. (NYSE: NYB) today reported third
quarter 2004 net income of $98.8 million, up $26.6 million, or 36.9%,
from the level recorded in the third quarter of 2003. The 2004 amount
was equivalent to $0.38 on a diluted per share basis; in the third
quarter of 2003, the Company recorded diluted earnings per share of
$0.40.(2)
For the three months ended September 30, 2004, the Company
reported cash earnings of $105.9 million, or $0.40 per diluted share,
representing a year-over-year increase of $25.6 million or 31.9%.(1)
For the nine months ended September 30, 2004, the Company reported
net income of $271.6 million, equivalent to diluted earnings per share
of $1.01. These amounts reflect the impact of a $94.9 million, or
$0.35 per diluted share, after-tax charge in the second quarter, in
connection with the repositioning of the balance sheet announced on
July 1, 2004. Excluding the charge, the Company would have reported
net income of $366.5 million, or $1.37 per diluted share, for the
current nine-month period, as compared to $211.3 million, or $1.15 per
diluted share, for the nine months ended September 30, 2003.(3)
The Company also reported cash earnings of $317.6 million, or
$1.18 per diluted share, for the current nine-month period, including
the repositioning charge. Absent the charge, the Company's nine-month
2004 cash earnings would have totaled $412.5 million, or $1.54 per
diluted share, as compared to nine-month 2003 cash earnings of $237.2
million.(4)
Commenting on the quarter, President and Chief Executive Officer
Joseph R. Ficalora stated, "This is the first earnings release we've
issued that reflects the full-quarter impact of the balance sheet
repositioning we undertook at the end of June. While earnings growth
was tempered as a result of that action, the benefit is reflected in
the quality of our balance sheet today.
"As our balance sheet clearly indicates," Mr. Ficalora noted, "we
have held to our business model, and made important progress toward
our stated goals. We grew our loans in the last three months, with
originations totaling $1.5 billion, including $1.1 billion of
multi-family loans. We funded that growth with $1.1 billion of cash
flows from securities, as we had stated, and from a $186 million
increase in deposits, as well.
"At the same time, we reduced our wholesale borrowings by $773
million, and our securities portfolio by $945 million, since the end
of June. In keeping with our repositioning plan, securities were
reduced to 31.8% of total assets, and wholesale borrowings to 38.7%,"
Mr. Ficalora said. "More importantly, due to the significant
flattening of the yield curve over the course of the quarter, we
refrained from growing our balance sheet.
"Our capital was also strengthened over the course of the
quarter," Mr. Ficalora added, "and we saw measurable improvement in
our capital ratios. At quarter-end, tangible stockholders' equity
represented 5.12% of tangible assets, an improvement of 61 basis
points."
Commenting on the Company's earnings, Mr. Ficalora further stated,
"The year-over-year increase in third quarter 2004 net income reflects
the record volume of loans produced over the past four quarters, and
the benefit of the Company's merger with Roslyn Bancorp on October
31st of last year. The growth in earnings was tempered by the balance
sheet repositioning, as mentioned, which included the extension of
$2.4 billion of borrowings to an average maturity of three years, with
an average cost of 3.32%. The extension accounted for 19 basis points
of the margin compression recorded in the third quarter; of greater
importance, however, was the flattening of the yield curve over the
past three months. In fact, the benefit of the widening spread on our
core mortgage business was markedly outweighed by the significant
reduction in long-term interest rates, which affected our reinvestment
of cash flows.
Company Projects 2004 Diluted GAAP EPS of $1.34 to $1.36
"While short-term rates rose approximately 100 basis points,
slightly ahead of our expectations, long-term rates declined at a time
when they were widely expected to rise," Mr. Ficalora said. "With the
yield curve significantly flatter than had been expected, we have
revised our 2004 earnings guidance and are projecting diluted GAAP
earnings per share in the range of $1.34 to $1.36. For 2005, we expect
continued growth in loan originations funded by cash flows from our
securities portfolio and increased deposits, continued tight control
of expenses, and continued strong credit quality. However, due to the
uncertainty of the timing and direction of long-term interest rates,
which has a significant effect on our spreads and margins, we will no
longer provide a full-year earnings per share outlook for 2005."
Board Declares $0.25 Per Share Dividend, Payable on November 16th
"Reflecting the strength of our capital and of our third quarter
GAAP and cash earnings," Mr. Ficalora continued, "the Board of
Directors declared a $0.25 per share dividend at last night's meeting,
payable on November 16, 2004 to shareholders of record at November 1,
2004. The current dividend is 33% higher than the dividend paid last
November, and represents a yield of 4.9% based on last night's closing
price. We firmly believe that dividends are a key component of our
share value, and are committed to maintaining our dividend at the
current level while we position our business model to enhance earnings
over time."
Third Quarter 2004 Earnings Summary
Net Interest Income
The Company recorded net interest income of $172.0 million in the
current third quarter, up $56.5 million, or 48.9%, from the
year-earlier amount. The increase stemmed from a $109.1 million, or
64.8%, rise in interest income to $277.6 million, which more than
offset a $52.6 million, or 99.3%, rise in interest expense to $105.6
million.
The year-over-year increase in third quarter 2004 interest income
reflects the assets acquired in the Roslyn merger, and the Company's
production of $6.6 billion of loans over the past twelve months. The
average balance of interest-earning assets rose $9.1 billion, or
80.1%, to $20.6 billion, which offset the impact of a 50-basis point
decline in the average yield to 5.40%. The reduction in yield stemmed
from a variety of factors, including the decline in long-term interest
rates in the current third quarter and the replacement of higher
yielding assets with assets reflecting lower market rates. In
addition, the repositioning of the balance sheet at the end of the
trailing quarter included the sale of $5.1 billion of securities with
an average yield of 4.62%.
In addition to the liabilities acquired in the Roslyn merger, the
year-over-year increase in interest expense reflects the Company's
increased use of borrowings in the first and second quarters, and the
increase in short-term interest rates in the third quarter of 2004. In
addition, the Company embarked on a campaign to grow deposits in the
current third quarter, bringing its rates more in line with the
marketplace. While the Company reduced its borrowings by $5.1 billion
at the end of the second quarter, the average balance of
interest-bearing liabilities rose $9.1 billion, or 83.9%, to $19.9
billion in the current third quarter, and the average cost of funds
rose 17 basis points to 2.13%. In addition to the preceding factors,
the higher average cost of funds reflects the extension of $2.4
billion of short-term borrowings to an average maturity of three years
with an average cost of 3.32% at the end of the second quarter, in
connection with the aforementioned balance sheet repositioning.
While net interest income rose year-over-year despite the impact
of these factors, the Company's interest rate spread and net interest
margin contracted during this time. The majority of the compression
occurred between the second and third quarters, as expected, with the
spread and margin each declining 49 basis points. The aforementioned
extension of borrowings at the end of the second quarter accounted for
20 and 19 basis points, respectively, of the third-quarter spread and
margin declines.
On a linked-quarter basis, the spread and margin compression were
accompanied by a reduction in net interest income, with the third
quarter 2004 level declining $63.2 million from the level recorded in
the second quarter of the year. While the impact of the repositioning
of the balance sheet on net interest income was expected to be
substantial, the reduction was exacerbated by the significant
flattening of the yield curve during this time. It is currently
management's expectation that the margin will continue to be under
pressure in this type of rate environment.
Provision for Loan Losses
The provision for loan losses was suspended in the current third
quarter, consistent with the Company's practice since the third
quarter of 1995. Please see the discussion of "Asset Quality".
Non-interest Income
Excluding net securities gains in the respective quarters, the
Company recorded non-interest income of $26.1 million in the third
quarter of 2004, up $1.3 million from the level recorded in the third
quarter of 2003. The increase stemmed from a $4.5 million, or 59.3%,
rise in other income to $12.2 million, which served to offset a $3.3
million decline in fee income to $13.9 million. While a decline in
prepayment penalties accounted for the latter reduction, the increase
in other income reflects growth in various revenue sources, including
the Company's investment in Bank-owned Life Insurance ("BOLI"), its
sale of third-party investment products throughout the branch network,
and its 100% equity interest in an investment advisory firm.
Non-interest Expense
The Company recorded non-interest expense of $50.3 million in the
current third quarter, signifying a $13.6 million increase from the
year-earlier amount. The amortization of core deposit intangibles
("CDI") accounted for $2.9 million and $1.5 million, respectively, of
non-interest expense in the current and year-earlier third quarters,
with the increase reflecting the CDI amortization stemming from the
Roslyn merger on October 31, 2003.
Operating expenses represented $47.5 million and $35.3 million of
non-interest expense in the respective quarters, and were equivalent
to 0.80% and 1.11% of average assets, respectively. The increase in
operating expenses was largely attributable to the expansion of the
branch network in connection with the Roslyn merger, and the
subsequent addition of three de novo banking offices. At September 30,
2004, the Company had 142 locations serving the New York metro region,
representing a net increase of 34 locations over the twelve-month
period.
Reflecting the cost of staffing and managing a larger financial
institution, third quarter 2004 compensation and benefits expense rose
$3.5 million year-over-year to $23.3 million; on a linked-quarter
basis, compensation and benefits expense reflected a $245,000 decline.
Occupancy and equipment expense rose $4.6 million year-over-year and
$1.1 million linked-quarter, reflecting the network expansion, as well
as upgrades to certain branches and the Company's systems technology.
General and administrative ("G&A") expense rose $3.2 million
year-over-year to $11.2 million, largely reflecting the merger with
Roslyn; on a linked-quarter basis, G&A expense was down $1.1 million,
notwithstanding the costs of a network-wide marketing campaign. Other
expenses totaled $2.1 million in the current third quarter, consistent
with the linked-quarter level, but up $904,000 from the third quarter
2003 amount.
The year-over-year increase in operating expenses and the
simultaneous decline in non-interest income were sufficiently offset
by the rise in net interest income to produce a 27-basis point
improvement in the efficiency ratio to 23.91% in the third quarter of
2004. In the second quarter of the year, the efficiency ratio equaled
17.94%, excluding the impact of the aforementioned repositioning
charge. The linked-quarter increase in the efficiency ratio reflects
the impact on net interest income of the aforementioned balance sheet
repositioning and deleveraging.
Income Tax Expense
The Company recorded income tax expense of $49.4 million in the
current third quarter, up $12.5 million from the third quarter 2003
amount. The increase was due to a $39.1 million rise in pre-tax income
to $148.2 million, and reflects an effective tax rate of 33.3%. In the
third quarter of 2003, the effective tax rate was 33.8%.
Earnings Summary for the Nine Months Ended September 30, 2004
Net Interest Income
The Company recorded net interest income of $620.7 million in the
current nine-month period, signifying a $288.6 million, or 86.9%,
increase from the level recorded in the first nine months of 2003. The
increase was attributable to a $405.3 million, or 81.5%, rise in
interest income to $902.6 million, which more than offset a $116.7
million, or 70.6%, rise in interest expense to $281.9 million.
In addition to the interest-earning assets acquired in the Roslyn
merger, the year-over-year increase in interest income reflects the
record volume of loans produced over the past four quarters, and the
growth of the securities portfolio in the first half of 2004. As a
result, the average balance of interest-earning assets rose $11.1
billion, or 101.6%, to $22.0 billion in the current nine-month period,
offsetting a 60-basis point decline in the average yield to 5.46%.
The year-over-year increase in nine-month interest expense
reflects the addition of Roslyn's interest-bearing liabilities,
together with the Company's increased use of borrowings in the first
half of the year. To a lesser extent, the increase reflects the
extension of $2.4 billion of borrowings to an average three-year
maturity with an average cost of 3.32% at the end of the second
quarter; the increase in short-term interest rates over the course of
the current third quarter; and an increase in deposits during this
time of rising rates. The average balance of interest-bearing
liabilities thus rose $11.0 billion, or 106.8%, year-over-year to
$21.3 billion; the increased balance was partly offset by the impact
of a 38-basis point reduction in the average cost of funds to 1.76%.
The same combination of factors that contributed to the third
quarter compression of the Company's spread and margin contributed to
their compression in the current nine-month period. For the first nine
months of 2004, the Company's spread and margin were equal to 3.70%
and 3.75%, respectively, down 22 and 30 basis points, respectively,
from the measures in the year-earlier nine months. The reduction in
margin also reflects the allocation of $272.9 million toward share
repurchases in the first half of the year.
Non-interest (Loss) Income
Excluding net securities losses and gains in the respective
periods, the Company recorded non-interest income of $84.6 million in
the nine months ended September 30, 2004, as compared to $67.9 million
in the nine months ended September 30, 2003. The 24.6% increase
stemmed from a $2.3 million, or 5.3%, rise in fee income to $45.9
million and from a $14.4 million, or 59.2%, rise in other income to
$38.7 million.
Non-interest Expense
The Company recorded non-interest expense of $150.7 million in the
current nine-month period, as compared to $107.6 million in the first
nine months of 2003. The amortization of CDI accounted for $8.6
million and $4.5 million of the respective totals, with operating
expenses representing the remaining $142.2 million and $103.1 million,
respectively. The latter amounts were equivalent to 0.75% and 1.12% of
average assets during the first nine months of 2004 and 2003,
respectively.
The same factors that caused the rise in third quarter 2004
operating expenses contributed to the increase in the current
nine-month period: the expansion of the Company pursuant to the Roslyn
merger, including an increase in the number of personnel and branch
locations; upgrades to the Company's information systems and branches;
and the implementation of a network-wide marketing campaign.
The increase in operating expenses spanned all four categories,
with compensation and benefits expense rising $13.4 million to $72.0
million; occupancy and equipment expense rising $12.4 million to $30.1
million; G&A expense rising $11.2 million to $34.2 million; and other
expenses rising $2.0 million to $5.8 million.
Excluding the second quarter 2004 repositioning charge from the
calculation, the efficiency ratio was 19.86% in the current nine-month
period, as compared to 24.41% in the nine months ended September 30,
2003.
Income Tax Expense
Income tax expense totaled $136.1 million in the current
nine-month period, up $32.5 million from the total recorded in the
first nine months of 2003. The increase was attributable to a $92.8
million rise in pre-tax income to $407.8 million, and an increase in
the effective tax rate to 33.4% from 32.9%.
Balance Sheet Summary
The Company recorded total assets of $23.6 billion at September
30, 2004, down $463.1 million from the June 30, 2004 total, as
expected, but up $183.3 million from the balance at December 31, 2003.
Consistent with the repositioning plan outlined early in the third
quarter, the Company utilized the cash flows generated by redemptions
and sales of securities to increase loan production and, at the same
time, increased its deposits and reduced its wholesale borrowings.
Loans totaled $12.6 billion at the third quarter-end, up $2.1 billion,
or 19.7%, from the year-end 2003 balance, including a $693.8 million,
or 5.8%, increase from the balance recorded at June 30, 2004. At the
same time, securities totaled $7.5 billion, down $2.0 billion, or
20.9%, from the year-end 2003 balance, including a $945.2 million, or
11.2%, reduction from the balance recorded at June 30, 2004.
Deposits totaled $10.2 billion at September 30, 2004, down $126.9
million from the year-end 2003 balance, but up $185.9 million from the
balance recorded at the linked quarter-end. At $10.0 billion, borrowed
funds were consistent with the year-end 2003 balance, but down $772.1
million, or 7.2%, from the June 30, 2004 amount, as planned.
Stockholders' equity totaled $3.1 billion at September 30, 2004,
up $277.6 million from the year-end 2003 total, including a $106.0
million increase from the balance recorded at June 30, 2004. Tangible
stockholders' equity totaled $1.1 billion at the close of the current
third quarter, up $252.8 million and $109.4 million, respectively,
from the totals recorded at the earlier dates.
Loans
The Company recorded total loans of $12.6 billion at September 30,
2004, representing a $2.1 billion, or 19.7%, increase from the balance
recorded at December 31, 2003. The increase was the net effect of
originations totaling $4.6 billion and repayments totaling $2.5
billion during the nine-month period. Third-quarter originations
accounted for $1.5 billion of the nine-month total, signifying a
$637.5 million, or 77.9%, increase from the volume produced in the
third quarter of 2003.
Multi-family loans represented $3.3 billion, or 71.5%, of
year-to-date originations, and $1.1 billion, or 75.1%, of loan
originations in the third quarter of 2004. At the close of the
quarter, multi-family loans totaled $9.2 billion, representing 73.4%
of loans outstanding, a 25.1% increase from $7.4 billion, which
represented 70.2% of loans outstanding, at December 31, 2003. At
September 30, 2004, the average multi-family loan had a principal
balance of $3.0 million and a loan-to-value ratio of 56.8%.
Multi-family loans typically feature a term of ten years, with a
fixed rate in the first five years of the mortgage and a rate that
adjusts annually in years six through ten. Loans that refinance in
years one through five are subject to prepayment penalties ranging
from five points to one point of the loan balance as the loan
progresses. However, the Company's multi-family lending niche is
largely a refinancing business, and the typical multi-family loan
refinances within the first five-year period. Accordingly, the
portfolio of multi-family loans had an expected weighted average life
of 3.4 years at September 30, 2004.
The majority of the Company's multi-family loans are secured by
rent-controlled and -stabilized buildings in the five boroughs of New
York City. Because the rents on the apartments are typically
below market, the buildings tend to be fully occupied, even during
times of economic adversity. The Company's asset quality has been
supported by such multi-family credits, which have not incurred a loss
for more than twenty years.
Among the multi-family loans originated in the current third
quarter was a $250.0 million multi-family loan made to Riverbay
Corporation - Co-op City on September 29th. The 20-year loan had a
loan-to-value ratio of 20.7% at inception, and features a five-year
adjustable rate of interest, with a floor of 5.20% in years one
through five, a floor of 6.20% in years six through ten, and a floor
of 6.70% beginning in the 11th year.
The $250.0 million loan is part of a $480.0 million financing
package which also includes a $230.0 million construction loan. The
first $50.0 million of the construction loan features the same term
and rates as the multi-family component and was originated on the same
date. The remaining $180.0 million of the construction loan will be
advanced over a 42-month period at a floating rate of interest equal
to 150 basis points above prime. Advances will be made as various
stages of construction are completed, as certified by a consulting
engineer engaged by the Company. On each anniversary of the original
loan, the funds advanced under the construction component during the
prior twelve-month period will be combined with the multi-family
credit. When the loan has been fully funded, the loan-to-value ratio
will be 33.2%, based on the current appraised value of the underlying
property.
Including the aforementioned Co-op City loan, construction loans
represented $455.0 million, or 9.8%, of year-to-date originations, and
$194.9 million, or 13.4%, of originations in the third quarter of
2004. At September 30, 2004, construction loans totaled $759.2
million, up $6.3 million from the June 30, 2004 balance, and up $115.7
million, or 18.0%, from the balance at year-end 2003. Construction
loans are typically originated for terms of 18 to 24 months, with a
floating rate of interest that is tied to various economic indices.
Commercial real estate loans accounted for $693.2 million, or
15.0%, of year-to-date originations, and $123.9 million, or 8.5%, of
originations in the third quarter of 2004. The portfolio of commercial
real estate loans totaled $1.9 billion at quarter-end, representing
15.2% of loans outstanding, and was up $52.6 million and $466.5
million, respectively, from the balances recorded at June 30, 2004 and
December 31, 2003. At September 30, 2004, the average commercial real
estate loan had a principal balance of $1.9 million and a
loan-to-value ratio of 57.9%. The expected weighted average life of
the portfolio was 3.8 years at September 30, 2004.
Since December 1, 2000, the Company has maintained a policy of
originating one-to-four family and consumer loans on a conduit basis,
selling them to a third party within ten business days of the loans
being closed. The loans in these portfolios have primarily been
acquired through merger transactions, or were originated by the
Company before the adoption of said policy. At September 30, 2004, the
balance of one-to-four family loans totaled $548.9 million,
representing 4.4% of loans outstanding, down $182.1 million, or 24.9%,
from the balance recorded at December 31, 2003. The balance of other
loans also fell during this time, to $128.5 million, signifying a
$183.1 million reduction over the nine-month period. While the decline
in one-to-four family loans was entirely attributable to repayments,
the decline in other loans reflects repayments and the sale of $129.9
million of home equity loans during the first quarter of 2004.
At the present time, the Company has a pipeline of $1.3 billion,
with multi-family loans representing 78% of that amount. Based upon
the net loan growth achieved in the first nine months of the year, it
is currently management's expectation that mortgage loans will grow at
an annual rate of 25% by the end of December, fueled by an increase in
multi-family loans.
Asset Quality
The third quarter of 2004 was the Company's 40th consecutive
quarter without any net charge-offs against the allowance for loan
losses, an indication of its consistent asset quality. At September
30, 2004, non-performing assets totaled $28.6 million, a $5.1 million
improvement from the June 30, 2004 level and a $5.8 million
improvement from the balance recorded at December 31, 2003.
Non-performing assets represented 0.12% of total assets at the close
of the current third quarter, as compared to 0.14% and 0.15% at the
respective earlier dates.
At September 30, 2004, non-performing loans accounted for $28.4
million of total non-performing assets, and were equivalent to 0.23%
of total loans. At June 30, 2004 and December 31, 2003, non-performing
loans respectively totaled $22.5 million and $34.3 million, and were
equivalent to 0.19% and 0.33% of total loans, respectively. Other real
estate owned accounted for the remaining $268,000 of total
non-performing assets at the close of the current third quarter,
representing a $176,000 increase from the year-end 2003 balance, but
an $11.0 million reduction from the balance recorded at June 30, 2004.
As expected, the linked-quarter improvement in other real estate
owned reflects the sale of property collateralizing a non-accrual loan
that had been acquired in the Roslyn merger. The Company sold the
property for $13.0 million and incurred no loss on the sale.
Reflecting the current quality of the Company's assets, the
provision for loan losses was suspended in the current third quarter,
consistent with the Company's practice since the third quarter of
1995. In the absence of any provisions or net charge-offs, the
allowance for loan losses was maintained at $78.3 million, consistent
with the December 31, 2003 allowance, and was equivalent to 276.07% of
non-performing loans and 0.62% of total loans at September 30, 2004.
Securities
Consistent with the plan set forth by management at the start of
the third quarter, the Company realized a meaningful reduction in its
securities portfolio at September 30, 2004 from the levels recorded at
June 30, 2004 and December 31, 2003. Securities totaled $7.5 billion
at September 30, 2004, representing 31.8% of total assets, as compared
to $8.5 billion, representing 35.1% of total assets, at the close of
the second quarter, and $9.5 billion, representing 40.5% of total
assets, at the end of last year.
Available-for-sale securities represented $3.3 billion, or 43.5%,
of total securities at the close of the current third quarter, down
from $3.9 billion and $6.3 billion, respectively, at June 30, 2004 and
December 31, 2003. Held-to-maturity securities represented the
remaining $4.3 billion of the September 30, 2004 total, and were down
$279.2 million from the second quarter-end level, but up $1.0 billion
from the year-end 2003 amount. The latter increase corresponds to the
second quarter 2004 reclassification of $1.0 billion of
available-for-sale securities as held-to-maturity securities.
Reflecting the lower balance and a reduction in market interest
rates over the course of the quarter, the net unrealized loss on
securities available for sale improved to $30.3 million at September
30, 2004 from $84.4 million at June 30, 2004. At December 31, 2003,
the net unrealized loss on available-for-sale securities was $34.6
million.
The following table sets forth certain information regarding the
carrying value, estimated book yield, and estimated weighted average
life of the Company's available-for-sale mortgage-backed and -related
securities at September 30, 2004:
At September 30, 2004
-------------------------------
Estimated Estimated
Carrying Book Average
Value Yield Life
(dollars in thousands) ----------- --------- ---------
Available-for-sale mortgage-backed
securities and CMOs:
Mortgage-backed securities $1,441,987 4.35% 5.2 years
Agency CMOs 613,978 4.28 3.8
Private label CMOs 1,015,220 4.54 3.1
----------- --------- ---------
Total available-for-sale mortgage-
backed securities and CMOs $3,071,185 4.40% 4.2 years
=========== ========= =========
It is currently management's expectation that the reduction in the
securities portfolio will continue in the coming quarters, and that
the portfolio will be reduced to 30% of total assets by December 31,
2004. The cash flows produced through securities redemptions and sales
will continue to represent a meaningful source of funding for loan
production, as more fully discussed under "Funding Sources" below.
Funding Sources
The shift in funding sources that began at the close of the second
quarter continued in the third quarter of 2004. Borrowed funds totaled
$10.0 billion at September 30, 2004, signifying a $28.3 million
increase from the year-end 2003 balance, but a reduction of $772.1
million, or 7.2%, from the balance recorded at June 30, 2004.
Wholesale borrowings represented $9.2 billion of total borrowed
funds at the close of the current third quarter, up $15.5 million from
the year-end 2003 balance, but down $772.6 million, or 7.8%, from the
balance at June 30, 2004. The September 30, 2004 amount represented
38.7% of total assets, an improvement from 39.0% and 41.2%,
respectively, at the earlier dates. Federal Home Loan Bank of New York
("FHLB-NY") advances represented $3.3 billion of the third quarter-end
total, with repurchase agreements representing $5.9 billion at the
same date.
In addition to wholesale borrowings, the Company had junior
subordinated debentures totaling $444.9 million at the close of the
current third quarter and other borrowings, consisting of senior debt
and REIT-preferred securities, of $362.8 million. At June 30, 2004 and
December 31, 2003, other borrowings totaled $364.2 million and $794.9
million, respectively; junior subordinated debentures totaled $443.1
million at June 30, 2004.
Deposits totaled $10.2 billion at September 30, 2004, down $126.9
million from the year-end 2003 balance, but up $185.9 million from the
balance recorded at the second quarter-end. The linked-quarter
increase was the net effect of a $217.5 million rise in core deposits
to $6.4 billion, and a $31.6 million decline in CDs to $3.8 billion.
While the Company had maintained a policy of allowing the run-off of
deposits for several quarters, it initiated a campaign to attract
deposits toward the end of the second quarter of 2004.
In the third quarter of 2004, the securities portfolio generated
cash flows of $1.1 billion for investment, exceeding the $800.0
million projected for the second half of this year. During the
quarter, the Company took advantage of market conditions to sell
securities totaling $642.5 million while, at the same time, realizing
a stronger than expected level of repayments from the mortgage-backed
and -related securities portfolio. In the fourth quarter of 2004, the
cash flows from securities will continue to fund loan production.
Interest Rate Sensitivity
As the following table indicates, the Company's interest rate risk
profile continued to improve during the current third quarter:
At September At June At December
30, 30, 31,
2004 2004 2003
---------- ---------- ---------
Interest Rate Sensitivity Gap:
One year 0.46 % 0.20 % (0.63)%
More than one to three years 3.19 6.40 11.16
More than three to five years 17.45 18.15 14.17
Net Interest Income Simulation:
+200 basis points over 12 months (2.05) (2.44) (5.49)
-100 basis points over 12 months 0.56 0.03 2.29
Stockholders' Equity
Stockholders' equity totaled $3.1 billion at September 30, 2004,
up $277.6 million from the year-end 2003 total, including a $106.0
million increase from the balance recorded at June 30, 2004. The
September 30, 2004 amount was equivalent to 13.32% of total assets and
a book value of $12.09 per share; at June 30, 2004 and December 31,
2003, stockholders' equity was equivalent to 12.62% and 12.24% of
total assets, and a book value of $11.71 and $11.40 per share,
respectively.
Tangible stockholders' equity totaled $1.1 billion at September
30, 2004, equivalent to 5.12% of tangible assets, as compared to
$994.8 million and 4.51% of tangible assets at the close of the second
quarter, and to $851.3 million and 3.97% of tangible assets at
December 31, 2003. On a per-share basis, the Company's tangible book
value was $4.24 at the close of the current third quarter, up from
$3.83 and $3.38, respectively, at the earlier dates. The
linked-quarter increase in tangible stockholders' equity was
attributable to a combination of factors, including the aforementioned
reduction in the unrealized net loss on available-for-sale securities.
The increase in tangible stockholders' equity since year-end 2003
reflects nine-month net income totaling $271.6 million, additional
cash contributions to tangible stockholders' equity totaling $46.0
million, and net proceeds of $399.5 million from the issuance of 13.5
million shares in a follow-on common stock offering on January 30,
2004.
In the first nine months of 2004, the Company distributed cash
dividends to shareholders totaling $185.7 million, including $64.9
million in the third quarter. In addition, the Company allocated
$272.9 million toward the repurchase of 9,180,268 shares, primarily
during the first six months of the year. At September 30, 2004, there
were 1,784,273 shares still available for repurchase under the Board
of Directors' five million-share repurchase authorization on April 20,
2004.
At September 30, 2004, 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 each of the minimum
levels required for classification as a "well capitalized institution"
under the Federal Deposit Insurance Corporation Improvement Act
("FDICIA"). The following tables set forth the Company's and the
Bank's leverage capital, Tier 1 risk-based capital, and total
risk-based capital levels at September 30, 2004, and the respective
minimum federal requirements:
Regulatory Capital Analysis (Company)
At September 30, 2004
----------------------------------------------------------
Risk-Based Capital
---------------------------------------
Leverage Capital Tier 1 Total
------------------ ------------------- -------------------
(dollars in Amount Ratio Amount Ratio Amount Ratio
thousands) ----------- ------ ----------- ------- ----------- -------
Total equity $1,743,195 7.94% $1,743,195 15.22% $1,950,488 17.03%
Regulatory
capital
requirement 1,097,213 5.00 687,207 6.00 1,145,346 10.00
----------- ------ ----------- ------- ----------- -------
Excess $ 645,982 2.94% $1,055,988 9.22% $ 805,142 7.03%
=========== ====== =========== ======= =========== =======
Regulatory Capital Analysis (Bank Only)
At September 30, 2004
----------------------------------------------------------
Risk-Based Capital
---------------------------------------
Leverage Capital Tier 1 Total
------------------ ------------------- -------------------
(dollars in Amount Ratio Amount Ratio Amount Ratio
thousands) ----------- ------ ----------- ------- ----------- -------
Total equity $2,030,903 9.25% $2,030,903 17.63% $2,109,196 18.31%
Regulatory
capital
requirement
for
classifi-
cation
as a well
capitalized
institution 1,097,552 5.00 691,013 6.00 1,151,688 10.00
----------- ------ ----------- ------- ----------- -------
Excess $ 933,351 4.25% $1,339,890 11.63% $ 957,508 8.31%
=========== ====== =========== ======= =========== =======
New York Community Bancorp, Inc. is the $23.6 billion holding
company for New York Community Bank and the fourth largest thrift in
the nation, based on total assets. The Bank serves its customers
through a network of 142 banking offices in New York City, Long
Island, Westchester County, and New Jersey, and operates through seven
divisions: Queens County Savings Bank, Roslyn Savings Bank, Richmond
County Savings Bank, Roosevelt Savings Bank, CFS Bank, First Savings
Bank of New Jersey, and Ironbound Bank. In addition to operating the
largest supermarket banking franchise in the New York metro region,
with 52 in-store branches, the Bank is one of the leading producers of
multi-family mortgage loans in New York City. Additional information
about the Company and its financial performance is available at
www.myNYCB.com.
Conference Call
The Company will host a post-earnings release conference call on
October 20, 2004 at 10:00 a.m. (ET). The conference call may be
accessed by phoning 800-263-8506 (for domestic calls) or 719-457-2681
(for international calls) and providing the following access code:
849332. Alternatively, the conference call may be accessed by visiting
the Company's web site, www.myNYCB.com, clicking on "Investor
Relations," and following the prompts. The web cast will be archived
at the Company's web site approximately two hours following completion
of the call through 5:00 p.m. on October 29, 2004. The telephone
replay will be available through midnight on October 27th, and may be
accessed by calling 888-203-1112 (for domestic calls) or 719-457-0820
(for international calls) and providing the same access code.
Forward-looking Statements and Associated Risk Factors
This release, and the associated conference call and web cast,
like many written and oral communications presented by the Company and
its authorized officers, may contain certain forward-looking
statements regarding its prospective performance and strategies within
the meaning of Section 27A of the Securities Act of 1933, as amended,
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 provisions for forward-looking statements contained in
the Private Securities Litigation Reform Act 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 "plan,"
"believe," "expect," "intend," "anticipate," "estimate," "project," or
other similar expressions. The Company's ability to predict results or
the actual effects of its plans and strategies, including the recent
deleveraging of its balance sheet and extension of its liabilities, is
inherently uncertain. Accordingly, actual results may differ
materially from anticipated results.
Factors that could have a material adverse effect on the
operations of the Company and its subsidiaries include, but are not
limited to, changes in general economic conditions; changes in
interest rates, deposit flows, loan demand, real estate values,
competition, and demand for financial services and loan, deposit, and
investment products in the Company's local markets; changes in the
quality or composition of the loan or investment portfolios; the
outcome of pending or threatened litigation; changes in accounting
principles, policies, or guidelines; changes in legislation and
regulation; 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, geopolitical, and technological
factors affecting the Company's operations, pricing, and services.
Specific factors that could cause future results to vary from current
management expectations are detailed from time to time in the
Company's SEC filings, which are available at the Company's web site,
www.myNYCB.com.
Readers are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date of this
release. 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 reconciliation of GAAP and cash earnings below.
(2) The per-share amount for the three months ended September 30,
2003 has been adjusted to reflect a 4-for-3 stock split on February
17, 2004.
(3) The per-share amount for the nine months ended September 30,
2003 has been adjusted to reflect a 4-for-3 stock split on February
17, 2004.
(4) Please see the reconciliation of GAAP and cash earnings below.
- Financial Statements and Tables Follow -
NEW YORK COMMUNITY BANCORP, INC.
CONSOLIDATED STATEMENTS OF CONDITION
(in thousands, except share data)
September 30, December 31,
2004 2003
(unaudited)
------------- -------------
Assets
Cash and due from banks $ 186,513 $ 285,904
Money market investments 1,170 1,167
Securities available for sale:
Mortgage-backed and -related securities 3,071,185 5,501,377
Debt and equity securities 196,459 775,657
Securities held to maturity:
Mortgage-backed and -related securities
(estimated market value of $2,241,636 and
$2,004,902, respectively) 2,339,650 2,038,560
Debt and equity securities (estimated
market value of $1,927,381 and $1,214,094,
respectively) 1,911,199 1,184,338
Federal Home Loan Bank of New York stock,
at cost 215,250 170,915
Mortgage loans:
Multi-family 9,222,425 7,369,178
Commercial real estate 1,911,588 1,445,048
1-4 family 548,876 730,963
Construction 759,226 643,548
------------- -------------
Total mortgage loans 12,442,115 10,188,737
Other loans 128,514 311,634
Less: Allowance for loan losses (78,293) (78,293)
------------- -------------
Loans, net 12,492,336 10,422,078
Premises and equipment, net 150,839 152,584
Goodwill 1,951,734 1,918,353
Core deposit intangibles 90,413 98,993
Deferred tax asset, net 270,783 256,920
Other assets 747,097 634,491
------------- -------------
Total assets $23,624,628 $23,441,337
============= =============
Liabilities and Stockholders' Equity
Deposits:
NOW and money market accounts $ 2,540,085 $ 2,300,221
Savings accounts 3,139,399 2,947,044
Certificates of deposit 3,807,830 4,361,638
Non-interest-bearing accounts 714,879 720,203
------------- -------------
Total deposits 10,202,193 10,329,106
------------- -------------
Official checks outstanding 24,323 78,124
Borrowed funds:
Wholesale borrowings 9,151,530 9,136,070
Junior subordinated debentures 444,931 --
Other borrowings 362,828 794,943
------------- -------------
Total borrowed funds 9,959,289 9,931,013
Mortgagors' escrow 85,433 31,240
Other liabilities 207,084 203,197
------------- -------------
Total liabilities 20,478,322 20,572,680
------------- -------------
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 and
259,915,509 shares issued, respectively;
265,090,409 and 256,649,073 shares
outstanding, respectively) 2,734 1,949
Paid-in capital in excess of par 3,007,738 2,565,620
Retained earnings (partially restricted) 435,455 434,577
Less: Treasury stock (8,306,043 and
3,266,436 shares, respectively) (227,217) (79,745)
Unallocated common stock held by
ESOP (14,979) (15,950)
Common stock held by SERP and
Deferred Compensation Plans (3,113) (3,113)
Unearned common stock held by RRPs -- (41)
Net unrealized loss on securities
available for sale, net of tax (30,273) (34,640)
Net unrealized loss on securities
transferred to held to maturity, net of
tax (24,039) --
------------- -------------
Total stockholders' equity 3,146,306 2,868,657
------------- -------------
Total liabilities and stockholders' equity $23,624,628 $23,441,337
============= =============
NEW YORK COMMUNITY BANCORP, INC.
CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share data)
(unaudited)
For the For the
Three Months Ended Nine Months Ended
September 30, September 30,
--------------------- ---------------------
2004 2003 2004 2003
---------- ---------- ----------- ---------
Interest Income:
Mortgage and other loans $167,713 $108,178 $484,734 $317,144
Mortgage-backed and
-related securities 75,332 35,547 313,249 113,359
Debt and equity securities 34,474 24,536 104,287 66,050
Money market investments 79 229 376 822
---------- ---------- ----------- ---------
Total interest income 277,598 168,490 902,646 497,375
---------- ---------- ----------- ---------
Interest Expense:
NOW and money market
accounts 6,725 1,972 18,944 7,966
Savings accounts 4,677 2,435 12,208 9,499
Certificates of deposit 14,557 7,488 32,271 27,275
Borrowed funds 79,580 41,089 218,306 120,471
Mortgagors' escrow 66 1 181 2
---------- ---------- ----------- ---------
Total interest expense 105,605 52,985 281,910 165,213
---------- ---------- ----------- ---------
Net interest income 171,993 115,505 620,736 332,162
Provision for loan losses -- -- -- --
---------- ---------- ----------- ---------
Net interest income
after provision for
loan losses 171,993 115,505 620,736 332,162
---------- ---------- ----------- ---------
Non-interest Income (Loss):
Fee income 13,915 17,195 45,873 43,557
Net securities gains
(losses) 412 5,478 (146,859) 22,544
Other 12,182 7,648 38,742 24,341
---------- ---------- ----------- ---------
Total non-interest income
(loss) 26,509 30,321 (62,244 ) 90,442
---------- ---------- ----------- ---------
Non-interest Expense:
Operating expenses:
Compensation and benefits 23,254 19,737 72,049 58,606
Occupancy and equipment 10,834 6,246 30,142 17,765
General and administrative 11,235 8,050 34,180 22,956
Other 2,134 1,230 5,784 3,810
---------- ---------- ----------- ---------
Total operating expenses 47,457 35,263 142,155 103,137
Amortization of core
deposit intangibles 2,860 1,500 8,580 4,500
---------- ---------- ----------- ---------
Total non-interest expense 50,317 36,763 150,735 107,637
---------- ---------- ----------- ---------
Income before income taxes 148,185 109,063 407,757 314,967
Income tax expense 49,353 36,878 136,147 103,661
---------- ---------- ----------- --------
Net Income $ 98,832 $ 72,185 $271,610 $211,306
========== ========== =========== =========
Basic earnings per share(1) $0.38 $0.41 $1.05 $1.18
========== ========== =========== =========
Diluted earnings per share
(1) $0.38 $0.40 $1.01 $1.15
========== ========== =========== =========
(1) Per-share amounts for the three and nine months ended
September 30, 2003 have been adjusted to reflect a 4-for-3
stock split on February 17, 2004.
NEW YORK COMMUNITY BANCORP, INC.
RECONCILIATION OF GAAP AND CASH EARNINGS
Although cash earnings are not a measure of performance calculated
in accordance with GAAP, the Company believes that cash earnings are
an important measure because of their contribution to tangible
stockholders' equity.
The Company calculates cash earnings by adding back to net income
certain items that have been charged against earnings, net of income
taxes, but have been added back to tangible stockholders' equity.
These items fall into four categories: expenses related to the
amortization and appreciation of shares held in the Company's Employee
Stock Ownership Plan ("ESOP"); the associated tax benefits; dividends
on unallocated 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 31, 2001,
respectively. Unlike other expenses incurred by the Company, the
aforementioned 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 and nine months ended September 30, 2004 and 2003 follows. Cash
earnings data for the nine-month period is shown both with and without
the aforementioned repositioning charge in the second quarter of 2004.
For the For the
Three Months Ended Nine Months Ended
September 30, September 30,
---------------------- ------------------------
(in thousands, except
per share data) 2004 2003 2004 2003
----------- ---------- ------------ -----------
Net income $ 98,832 $72,185 $271,610 $211,306
Additional
contributions to
tangible
stockholders' equity:
Amortization and
appreciation of
shares held in stock-
related benefit plan 2,132 2,554 7,463 6,375
Associated tax
benefits 840 2,989 26,371 12,046
Dividends on
unallocated ESOP
shares 1,268 1,106 3,599 3,017
Amortization of core
deposit intangibles 2,860 1,500 8,580 4,500
--------- -------- ---------- ---------
Total additional
contributions to
tangible stockholders'
equity 7,100 8,149 46,013 25,938
--------- -------- ---------- ---------
Cash earnings $ 105,932 $80,334 $317,623 $237,244
========= ======== ========== =========
Adjustments to cash
earnings:
Net loss on sales of
securities relating
to balance sheet
repositioning in 2Q
2004 157,215 --
Income tax benefit on
adjustment (62,336) --
---------- ---------
Cash earnings
excluding
repositioning charge $412,502 $237,244
========== =========
CASH EARNINGS DATA:
Basic cash earnings
per share (1) $0.41 $0.46 $1.22 $1.33
Diluted cash earnings
per share (1) 0.40 0.44 1.18 1.30
Cash return on average
assets 1.78% 2.54% 1.67% 2.57%
Cash return on average
stockholders' equity 13.83 24.54 13.37 23.84
Cash efficiency ratio 22.83 22.43 24.12 22.90
CASH EARNINGS DATA
EXCLUDING 2Q 2004
REPOSITIONING
CHARGE:
Basic cash earnings
per share (1) $1.59 $1.33
Diluted cash earnings
per share (1) 1.54 1.30
Cash return on average
assets 2.16% 2.57%
Cash return on average
stockholders' equity 17.37 23.84
Cash efficiency ratio 18.82 22.90
(1) Per-share amounts for the three and nine months ended
September 30, 2003 have been adjusted to reflect a 4-for-3
stock split on February 17, 2004.
NEW YORK COMMUNITY BANCORP, INC.
NET INTEREST INCOME ANALYSIS
(dollars in thousands)
(unaudited)
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-backed and -related
securities 6,011,255 75,332 5.01
Debt and equity 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%
============ ========= =======
Three Months Ended September 30,
-----------------------------------
2003
--------------------------------
Average
Average Yield/
Balance Interest Cost
------------ --------- -------
Assets:
Interest-earning assets:
Mortgage and other loans, net $ 5,822,703 $108,178 7.43%
Mortgage-backed and -related
securities 3,690,427 35,547 3.85
Debt and equity securities 1,873,788 24,536 5.24
Money market investments 35,948 229 2.55
------------ --------- -------
Total interest-earning assets 11,422,866 168,490 5.90
Non-interest-earning assets 1,232,711
------------
Total assets $12,655,577
============
Liabilities and Stockholders'
Equity:
Interest-bearing deposits:
NOW and money market accounts $ 1,173,863 $ 1,972 0.67%
Savings accounts 1,683,151 2,435 0.58
Certificates of deposit 1,686,383 7,488 1.78
Mortgagors' escrow 18,881 1 0.02
------------ --------- -------
Total interest-bearing deposits 4,562,278 11,896 1.04
Borrowed funds 6,241,174 41,089 2.63
------------ --------- -------
Total interest-bearing liabilities 10,803,452 52,985 1.96
Non-interest-bearing deposits 482,151
Other liabilities 60,453
------------
Total liabilities 11,346,056
Stockholders' equity 1,309,521
------------
Total liabilities and
stockholders' equity $12,655,577
============
Net interest income/interest rate
spread $115,505 3.94%
========= =======
Net interest-earning assets/net
interest margin $ 619,414 4.04%
============ =======
Ratio of interest-earning assets
to interest-bearing liabilities 1.06x
=======
Core deposits $ 3,339,165 $ 4,407 0.53%
============ ========= =======
NEW YORK COMMUNITY BANCORP, INC.
NET INTEREST INCOME ANALYSIS
(dollars in thousands)
(unaudited)
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-backed and -related
securities 8,279,071 313,249 5.04
Debt and equity 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%
============ ========= =======
Nine Months Ended September 30,
--------------------------------
2003
--------------------------------
Average
Average Yield/
Balance Interest Cost
------------ --------- -------
Assets:
Interest-earning assets:
Mortgage and other loans, net $ 5,685,972 $317,144 7.44%
Mortgage-backed and -related
securities 3,672,347 113,359 4.12
Debt and equity securities 1,533,174 66,050 5.74
Money market investments 44,474 822 2.46
------------ --------- -------
Total interest-earning assets 10,935,967 497,375 6.06
Non-interest-earning assets 1,350,571
------------
Total assets $12,286,538
============
Liabilities and Stockholders'
Equity:
Interest-bearing deposits:
NOW and money market accounts $ 1,185,006 $ 7,966 0.90%
Savings accounts 1,677,392 9,499 0.76
Certificates of deposit 1,789,056 27,275 2.03
Mortgagors' escrow 37,817 2 0.01
------------ --------- -------
Total interest-bearing deposits 4,689,271 44,742 1.27
Borrowed funds 5,622,692 120,471 2.86
------------ --------- -------
Total interest-bearing liabilities 10,311,963 165,213 2.14
Non-interest-bearing deposits 480,897
Other liabilities 166,947
------------
Total liabilities 10,959,807
Stockholders' equity 1,326,731
------------
Total liabilities and
stockholders' equity $12,286,538
============
Net interest income/interest rate
spread $332,162 3.92%
========= =======
Net interest-earning assets/net
interest margin $ 624,004 4.05%
============ =======
Ratio of interest-earning assets
to interest-bearing liabilities 1.06x
=======
Core deposits $ 3,343,295 $ 17,465 0.70%
============ ========= =======
NEW YORK COMMUNITY BANCORP, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(dollars in thousands, except per share data)
(unaudited)
For the For the
Three Months Ended Nine Months Ended
September 30, September 30,
--------------------------- ---------------------------
2004 2003 2004 2003
------------- ------------- ------------- -------------
GAAP EARNINGS
DATA:
Net income $98,832 $72,185 $271,610 $211,306
Basic earnings
per share (1) 0.38 0.41 1.05 1.18
Diluted
earnings per
share (1) 0.38 0.40 1.01 1.15
Return on
average assets 1.66% 2.28% 1.43% 2.29%
Return on
average
stockholders'
equity 12.91 22.05 11.43 21.24
Return on
average
tangible
stockholders'
equity 38.80 45.26 32.05 43.00
Efficiency
ratio 23.91 24.18 25.45 24.41
Operating
expenses to
average
assets 0.80 1.11 0.75 1.12
Interest rate
spread 3.27 3.94 3.70 3.92
Net interest
margin 3.34 4.04 3.75 4.05
Shares used
for basic EPS
computation
(1) 259,123,652 176,267,813 259,909,843 178,586,148
Shares used
for diluted
EPS
computation
(1) 262,473,373 182,741,443 268,120,962 183,010,876
EARNINGS DATA
EXCLUDING 2Q
2004
REPOSITIONING
CHARGE (2):
Net income $366,489 $211,306
Basic earnings
per share (1) 1.41 1.18
Diluted
earnings per
share (1) 1.37 1.15
Return on
average
assets 1.92% 2.29%
Return on
average
stockholders'
equity 15.43 21.24
Return on
average
tangible
stockholders'
equity 43.25 43.00
Efficiency
ratio (3) 19.86 24.41
At September At December
30, 31,
2004 2003
------------- -------------
BALANCE SHEET DATA:
Book value per share $12.09 $11.40
Tangible book value per share 4.24 3.38
Stockholders' equity to total assets 13.32% 12.24%
Tangible stockholders' equity to tangible
assets 5.12 3.97
Shares used for book value computation 260,330,607 251,580,425
Total shares issued and outstanding 265,090,409 256,649,073
ASSET QUALITY RATIOS:
Non-performing loans to total loans 0.23% 0.33%
Non-performing assets to total assets 0.12 0.15
Allowance for loan losses to non-
performing loans 276.07 228.01
Allowance for loan losses to total loans 0.62 0.75
(1) Share amounts for the three and nine months ended September
30, 2003 have been adjusted to reflect a 4-for-3 stock split
on February 17, 2004.
(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
second quarter 2004 balance sheet repositioning.
(3) The efficiency ratio for the nine months ended September 30,
2004 excludes the impact of a $157.2 million pre-tax loss on
the sale of securities relating to the second quarter 2004
balance sheet repositioning.
CONTACT: New York Community Bancorp, Inc.
Investor Relations:
Ilene A. Angarola, 516-683-4420