Exhibit 99.1
New York Community Bancorp, Inc. Reports 1st Quarter 2005 Diluted GAAP
EPS of $0.35 and Diluted Cash EPS of $0.37 -1-;
Board of Directors Declares $0.25 Per Share Dividend
WESTBURY, N.Y.--(BUSINESS WIRE)--April 20, 2005--1st Quarter 2005
Highlights
-- Net income rose $7.6 million, or 9.1%, to $91.1 million on a
linked-quarter basis
-- The efficiency ratio improved to 26.54% on a linked-quarter
basis
-- Loan originations totaled $1.8 billion, including $1.4 billion
of multi-family loans
-- Loans rose $1.1 billion to $14.5 billion at March 31, 2005,
signifying an annualized growth rate of 34%
-- Multi-family loans rose $1.0 billion to $10.9 billion,
representing 75% of total loans outstanding and an annualized
growth rate of 43%
-- Securities totaled $6.6 billion, representing 26.8% of total
assets, down from $7.1 billion, or 29.5% of total assets, at
December 31, 2004
-- Core deposits rose to $6.9 billion, representing 64.9% of
total deposits
-- Tangible stockholders' equity equaled 5.45% of tangible
assets, excluding net unrealized losses on securities;
including the net unrealized losses, tangible equity equaled
5.21% of tangible assets
-- The Bank's leverage capital ratio equaled 8.68% at March 31st
New York Community Bancorp, Inc. (NYSE: NYB) today reported first
quarter 2005 earnings of $91.1 million, or $0.35 per diluted share,
generating a 1.64% return on average tangible assets and a 32.20%
return on average tangible stockholders' equity. The Company earned
$83.5 million, or $0.32 per diluted share, in the trailing quarter and
$130.0 million or $0.48 per diluted share, in the first quarter of
2004.
At the close of the second quarter of 2004, the Company enhanced
its interest rate and market risk profile by significantly
repositioning its balance sheet. In connection with this strategy, the
Company dramatically reduced its securities portfolio and extended the
maturity of certain liabilities. In view of the significant difference
in its balance sheet as a result of these, and subsequent, actions,
the Company believes that a comparison of its first quarter 2005 and
fourth quarter 2004 results is more germane to understanding its
direction and the progress made since the balance sheet was
repositioned, than a comparison of its first quarter 2005 and 2004
results.
Included in the Company's first quarter 2005 earnings was an
after-tax gain of $4.0 million on the sale of certain Bank-owned
properties, which is also reflected in the Company's first quarter
2005 cash earnings of $98.2 million, or $0.37 per diluted share. The
Company's cash earnings provided a 1.77% return on average tangible
assets and a 34.71% return on average tangible stockholders'
equity. (1)
Board of Directors Declares $0.25 per Share Dividend, Payable on
May 17th
Commenting on the Company's first quarter 2005 results, President
and Chief Executive Officer Joseph R. Ficalora stated, "We are very
pleased with our first quarter performance, which reflected the
substantial progress we've made since the repositioning of our balance
sheet at the end of June. Among our first quarter 2005 achievements
were a linked-quarter increase in fee income and a linked-quarter
reduction in operating expenses, which contributed to an improvement
in our efficiency ratio. Based on our first quarter 2005 GAAP and cash
earnings, the Board last night declared a quarterly cash dividend of
$0.25 per share, payable on May 17th to shareholders of record as of
May 2, 2005.
"We also are very pleased with the progress made toward achieving
our key objectives: building the Company's value by focusing on our
fundamental business model and by further strengthening our balance
sheet," Mr. Ficalora said. "In the first quarter of 2005, loan
originations totaled $1.8 billion, including $1.4 billion of
multi-family loans. As a result of our productivity, our total loan
portfolio now exceeds $14.5 billion, and our multi-family loan
portfolio is fast approaching the $11.0 billion mark. With a current
pipeline of approximately $1.8 billion, including $1.5 billion of
multi-family credits, we believe that, by the end of the year, our
loans will have grown at a rate consistent with our target, which, at
this point in the calendar, has historically been in the range of 20%
to 25%.
"During the quarter, we also saw an increase in multi-family loan
refinancings, which resulted in higher fee income and contributed to
an increase in the average yield on loans. Despite the 50-basis point
rise in the fed funds rate, our net interest margin equaled 3.03%,
which was within our range of expectations, and reflected a 12-basis
point reduction from the measure recorded in the fourth quarter of
2004.
"With regard to asset quality," Mr. Ficalora stated, "we are
pleased with our current measures, with non-performing assets
representing 0.14% of total assets and non-performing loans
representing 0.23% of total loans. Charge-offs amounted to eight
thousand dollars during the quarter, a miniscule number, and consisted
entirely of consumer loans acquired in merger transactions."
"We also realized an increase in deposits during the quarter,"
noted Mr. Ficalora. "Total deposits rose to $10.6 billion at March
31st, signifying a $572.0 million, or 5.7%, increase since the
repositioning of our balance sheet began. We are currently in the
process of diversifying our funding sources, and expect that continued
deposit growth will be a key result.
"Yet another first quarter highlight was the ongoing strategic
reduction of our securities portfolio," Mr. Ficalora continued. "At
quarter-end, total securities amounted to $6.6 billion, and
represented 26.8% of total assets, as compared to $12.1 billion, or
45.7% of total assets, at March 31, 2004. Accordingly, we are very
much on track to achieve our stated target of reducing securities to
25% of total assets by the end of 2005.
"We are also pleased by the strength of our capital position, as
reflected in our tangible equity to assets ratio at March 31, 2005.
Tangible stockholders' equity equaled 5.45% of tangible assets,
excluding net unrealized losses on securities; including the net
unrealized losses, the ratio was 5.21% at quarter-end. At the same
time, we continued to see an increase in the Bank's regulatory capital
levels, as exemplified by the linked-quarter rise in our leverage
capital ratio to 8.68%.
"In sum, while interest rate volatility continues to pose a
challenge to our sector, we are pleased with the progress we are
making as we continue to improve our balance sheet position to deal
with the uncertainties that lie ahead," Mr. Ficalora said.
First Quarter 2005 Earnings Summary
Net Interest Income
The Company recorded first quarter 2005 net interest income of
$158.8 million, as compared to $160.5 million in the three months
ended December 31, 2004. While a number of factors contributed to the
linked-quarter reduction, primary among them were the planned decline
in securities, which tempered the significant level of loan growth,
and the immediate impact of the 50-basis point rise in short-term
interest rates on the Company's cost of funds during the three-month
period.
While the Company recorded a $12.9 million increase in first
quarter 2005 interest income, to $282.4 million, this increase was
exceeded by a $14.6 million rise in interest expense to $123.6 million
during the same time. The linked-quarter increase in interest income
stemmed from a $564.1 million rise in the average balance of
interest-earning assets to $21.0 billion and a 10-basis point rise in
the average yield to 5.39%. The higher average balance reflects a
$951.2 million increase in average loans to $13.8 billion; the higher
yield primarily reflects a seven-basis point rise in the average yield
on loans to 5.48%.
The linked-quarter rise in interest expense was attributable to a
$546.4 million increase in the average balance of interest-bearing
liabilities to $20.1 billion, coupled with a 24-basis point increase
in the average cost of funds to 2.47%. The higher average balance
reflects a $259.3 million increase in the average balance of
interest-bearing deposits to $9.8 billion and a $287.0 million
increase in the average balance of borrowed funds, to $10.3 billion.
The higher average cost reflects the rise in short-term interest rates
during the three months ended March 31, 2005.
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 3.03% in the current first quarter from
3.15% in the trailing three-month period.
Non-interest Income
The Company derives non-interest income from two primary sources:
fee income, which generally includes retail deposit fees, charges on
loans, and prepayment penalties; and other income, which includes
joint venture income, the revenues produced by the sale of third-party
investment products, and the income generated by the Company's
investment in Bank-owned Life Insurance ("BOLI") and by its investment
advisory firm, Peter B. Cannell & Co., Inc. ("PBC").
In the first quarter of 2005, the Company recorded fee income of
$12.9 million, up $532,000 from the level recorded in the fourth
quarter of 2004. The increase was primarily due to an increase in
prepayment penalties during the quarter, which was tempered by a
reduction in retail deposit fees.
Other income totaled $19.0 million in the current first quarter,
as compared to $13.4 million in the trailing three months. In addition
to the $6.1 million gain on the sale of Bank-owned properties, the
first quarter 2005 amount reflects BOLI income of $5.4 million and
revenues from PBC of $2.4 million, comparable to the amounts recorded
in the three months ended December 31, 2004.
Non-interest Expense
Non-interest expense has two components: operating expenses, which
consist of compensation and benefits, occupancy and equipment, general
and administrative ("G&A"), and other expenses; and the amortization
of the core deposit intangibles ("CDI") stemming from the Company's
mergers with Richmond County Financial Corp. and Roslyn Bancorp, Inc.
In the first quarter of 2005, the Company recorded total
non-interest expense of $53.6 million, signifying a $761,000 reduction
from the level recorded in the three months ended December 31, 2004.
Operating expenses accounted for $50.6 million of the first quarter
2005 total, as compared to $51.5 million of the fourth quarter 2004
amount.
The linked-quarter reduction was due to a decline in compensation
and benefits and G&A expenses. Compensation and benefits expense fell
$368,000 on a linked-quarter basis, to $25.4 million, while G&A
expense fell $1.8 million to $12.0 million. These reductions served to
offset a $961,000 linked-quarter increase in occupancy and equipment
expense to $11.4 million, and a $351,000 linked-quarter increase in
other expenses to $1.9 million. The increase in occupancy and
equipment expense was largely due to seasonal factors.
Income Tax Expense
Income tax expense totaled $46.1 million in the current first
quarter, as compared to $40.7 million in the three months ended
December 31, 2004. The linked-quarter increase reflects a $13.0
million rise in pre-tax income to $137.2 million and an increase in
the effective tax rate to 33.6% from 32.8%.
Balance Sheet Summary
The Company recorded total assets of $24.6 billion at March 31,
2005, signifying a $574.6 million increase from the balance recorded
at December 31, 2004. While total loans rose $1.1 billion, or 8.4%,
during this time, the increase was significantly tempered by a $479.6
million, or 6.8%, decline in total securities, consistent with the
Company's planned reduction of the securities portfolio.
Loans
The Company's status as a leading lender in its market was
reaffirmed by the volume of loans produced in the first quarter of
2005. Loan originations totaled $1.8 billion for the quarter,
signifying a 65.3% increase from $1.1 billion in the first three
months of 2004. Multi-family loan originations accounted for $1.4
billion, or 77.8%, of the current first quarter's production, and were
up 95.0% from the volume recorded in the year-earlier three months.
Construction loans accounted for $178.9 million, or 10.1%, of the
current first quarter's production, while commercial real estate loans
accounted for $175.8 million, or 9.9%. In the year-earlier first
quarter, construction and commercial real estate loan originations
totaled $144.2 million and $166.7 million, respectively.
Reflecting the record volume of loans produced, offsetting
repayments of $625.8 million, and sales of one-to-four family loans
totaling $16.0 million, the loan portfolio grew at an annualized rate
of 33.7%. At March 31, 2005, the Company recorded total loans of $14.5
billion, up from $13.4 billion at December 31, 2004. Multi-family
loans accounted for $10.9 billion, or 75.0%, of total loans
outstanding, and were up $1.0 billion, or 10.6%, from the year-end
2004 balance, signifying an annualized growth rate of 42.6%. At March
31, 2005, the multi-family loan portfolio had an average principal
balance of $3.2 million and a loan-to-value ratio of 58.9%. The
expected weighted average life of the portfolio was 3.9 years at that
date.
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. However, the nature of the Company's lending niche is
such that the typical multi-family loan refinances within the first
five-year period, thus generating 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. Because the rents on the
apartments in these buildings 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 its
multi-family credits, which have not incurred a loss for more than
twenty years.
The Company has been originating multi-family loans in this market
for several decades. Its longevity reflects the relationships it has
developed with several leading mortgage brokers, who are familiar with
the Company's lending practices, its underwriting standards, and its
long-standing 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
relationships have supported the growth of the Company's multi-family
loan portfolio.
Commercial real estate loans totaled $2.3 billion at March 31,
2005, representing 15.6% of total loans outstanding and a $120.6
million, or 5.6%, increase from the balance recorded at December 31,
2004. The portfolio had an average principal balance of $2.3 million
at the close of the current first quarter and a loan-to-value ratio of
54.6%. The expected weighted average life of the portfolio was 4.3
years at March 31, 2005. The Company's commercial real estate loan
portfolio is largely secured by office and mixed-use buildings in New
York City and national credit retail shopping centers in New York City
and Long Island. Commercial real estate loans feature terms and rates
that parallel the terms and rates 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 $825.2 million at March
31, 2005, representing 5.7% of total loans outstanding and a $21.0
million increase from the year-end 2004 amount. 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 to several
leading builders and developers. The typical construction loan
features a term of 18 to 24 months and a floating rate of interest
that is tied to prime.
Since December 1, 2000, the Company has been originating
one-to-four family loans on a pass-through basis, and selling the
loans to a third-party conduit within ten days of closing,
service-released. Reflecting this practice, as well as first quarter
2005 repayments, the portfolio of one-to-four family loans declined
$23.1 million during the quarter to $483.0 million, representing 3.3%
of total loans outstanding at March 31, 2005. The remaining loans in
portfolio are seasoned loans that were originated before the conduit
policy was adopted or that were acquired in merger transactions in
2000, 2001, and 2003.
The Company currently has a pipeline of approximately $1.8
billion, with multi-family loans accounting for approximately 83% of
that amount.
Asset Quality
Non-performing assets totaled $33.8 million at March 31, 2005,
representing 0.14% of total assets, as compared to $28.7 million,
representing 0.12% of total assets, at December 31, 2004.
Non-performing loans accounted for $33.1 million and $28.1 million,
respectively, of the March 31, 2005 and December 31, 2004 totals, and
represented 0.23% and 0.21%, respectively, of total loans at the
corresponding dates. Included in non-performing loans at March 31,
2005 were non-accrual mortgage loans totaling $31.6 million and
non-accrual other loans totaling $1.5 million, as compared to $23.6
million and $4.6 million, respectively, at December 31, 2004.
Other real estate owned rose $124,000 during this time to
$690,000, and consisted of four residential properties at March 31,
2005. The Company is currently in the process of marketing the
properties for sale and does not expect to incur a loss when such
properties are sold.
The allowance for loan losses totaled $78.0 million at March 31,
2005, down eight thousand dollars from the balance recorded at
December 31, 2004. While the Company recorded no provisions for loan
losses during the current first quarter, it charged off eight thousand
dollars of consumer loans acquired in merger transactions. The
allowance for loan losses equaled 0.54% of total loans at the close of
the first quarter and 236.03% of non-performing loans at the same
date.
Securities
In the first quarter of 2005, the Company continued its planned
reduction of the securities portfolio. Securities totaled $6.6 billion
at March 31, 2005, reflecting a linked-quarter reduction of $479.6
million, or 6.8%, and a year-over-year reduction of $5.5 billion, or
45.5%. Securities represented 26.8% of total assets at the close of
the current first quarter, as compared to 29.5% and 45.7%,
respectively, at December 31 and March 31, 2004. The current ratio of
securities to assets is well within the range of the Company's stated
target of 25% by year-end 2005.
Available-for-sale securities represented $2.9 billion, or 44.3%,
of total securities at the close of the current first quarter, and
were down $185.3 million and $5.4 billion, respectively, from the
amounts recorded at December 31 and March 31, 2004. Mortgage-related
securities represented $2.7 billion of the March 31, 2005 total, and
were down $189.2 million and $4.8 billion, respectively, from the
balances recorded at the corresponding dates. Debt and equity
securities represented the remaining $211.1 million of
available-for-sale securities at the close of the current first
quarter, and were up a modest $4.0 million from the year-end 2004
balance, but down $552.4 million from the balance at March 31, 2004.
The linked-quarter increase was primarily a benefit of the unrealized
gains associated with Statement of Financial Accounting Standards No.
115.
The after-tax net unrealized loss on securities available for sale
was $40.8 million at the close of the current first quarter, as
compared to $20.4 million at December 31, 2004. The increase was the
direct result of the rise in market interest rates during the quarter,
as exemplified by the rate on the five-year Treasury, which increased
56 basis points during this time.
Held-to-maturity securities represented $3.7 billion, or 55.7%, of
total securities at the close of the current first quarter, and were
down $294.4 million and $148.6 million, respectively, from the amounts
recorded at December 31 and March 31, 2004. Mortgage-related
securities accounted for $2.0 billion of the March 31, 2005 total,
signifying a $104.1 million increase from the year-earlier level but a
$139.3 million reduction from the level recorded at December 31, 2004.
Other securities totaled $1.7 billion at the close of the current
first quarter, and were down $155.1 million and $252.6 million,
respectively, from the balances recorded at December 31 and March 31,
2004.
Sources of Funds
In the first quarter of 2005, the Company continued to fund its
loan growth through three primary sources: cash flows from securities
redemptions and sales; an increase in deposits; and an increase in
wholesale borrowings. During the quarter, securities generated cash
flows of approximately $460 million. In addition, the Company recorded
a $218.7 million, or 3.3%, increase in core deposits, defined as all
deposits except certificates of deposit ("CDs"), and a $279.4 million,
or 3.0%, increase in wholesale borrowings.
Core deposits totaled $6.9 billion at March 31, 2005, representing
64.9% of total deposits, as compared to $6.6 billion, representing
63.9%, at December 31, 2004 and to $6.1 billion, representing 61.2%,
at March 31, 2004. The linked-quarter and year-over-year increases
were largely due to an increase in NOW and money market accounts,
which rose $487.3 million and $784.8 million, respectively, to $3.3
billion over the three- and twelve-month periods. In addition, the
balance of non-interest-bearing accounts rose $3.7 million and $12.1
million, respectively, to $742.9 million at March 31, 2005.
These increases were partly tempered by linked-quarter and
year-over-year reductions in the balances of savings accounts and CDs.
Savings accounts declined $272.3 million and $69.7 million,
respectively, to $2.8 billion, while CDs declined $32.5 million and
$166.0 million, respectively, to $3.7 billion at March 31, 2005. Total
deposits amounted to $10.6 billion at the close of the current first
quarter, up $186.2 million on a linked-quarter basis and up $561.2
million year-over-year.
The increase in deposits during this time reflects a shift in the
Company's approach to funding. As a result of three merger
transactions in three years, the Company had acquired a portfolio of
higher cost deposits, which it had been allowing to run off. In
connection with the repositioning of the balance sheet at the end of
June 2004, the Company began to focus on growing deposits, with a
particular emphasis on NOW and money market and non-interest-bearing
accounts.
While deposits have become a more dominant funding source in
recent quarters, the Company continues to utilize wholesale borrowings
to complement its funding mix. At March 31, 2005, wholesale borrowings
totaled $9.6 billion, down $2.3 billion from the year-earlier balance,
but up $279.4 million from the year-end 2004 amount. Including junior
subordinated debentures of $444.5 million and other borrowings of
$360.3 million, the Company had total borrowed funds of $10.4 billion
at March 31, 2005.
Stockholders' Equity
The Company recorded stockholders' equity of $3.2 billion at March
31, 2005, reflecting a $12.2 million increase from the balance at
December 31, 2004. The March 31, 2005 amount was equivalent to 13.00%
of total assets and a book value of $12.26 per share, based on
260,921,443 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 equaled $1.2 billion at March 31,
2005, up $28.9 million from the balance recorded at December 31, 2004.
Excluding net unrealized losses on securities from the respective
totals, tangible stockholders' equity equaled 5.45% and 5.39% of
tangible assets at the corresponding dates. Including the net
unrealized losses, tangible stockholders' equity equaled 5.21% and
5.22% of tangible assets, respectively.
The increase in tangible stockholders' equity reflects first
quarter net income of $91.1 million and additional contributions to
tangible stockholders' equity of $7.1 million. During the quarter, the
Company distributed dividends totaling $65.2 million and allocated
$1.0 million for the repurchase of 55,987 shares of its common stock.
At March 31, 2005, there were 1,625,940 shares still available for
repurchase under the Board of Directors' share repurchase
authorization on April 20, 2004.
At March 31, 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" institution under
the Federal Deposit Insurance Corporation Improvement Act. The
following table sets forth the Bank's leverage capital, Tier 1
risk-based capital, and total risk-based capital levels at March 31,
2005 and the minimum federal requirements for well capitalized
classification.
Regulatory Capital Analysis (Bank Only)
At March 31, 2005
----------------------------------------------------------
Risk-Based Capital
---------------------------------------
Leverage Capital Tier 1 Total
------------------ ------------------- -------------------
(dollars in
thousands) Amount Ratio Amount Ratio Amount Ratio
----------- ------ ----------- ------- ----------- -------
Total
equity $1,928,984 8.68% $1,928,984 15.92% $2,007,033 16.57%
Minimum
regulatory
capital
requirement 1,110,694 5.00 726,884 6.00 1,211,473 10.00
----------- ------ ----------- ------- ----------- -------
Excess $ 818,290 3.68% $1,202,100 9.92% $ 795,560 6.57%
=========== ====== =========== ======= =========== =======
Company Profile
New York Community Bancorp, Inc. is the holding company for New
York Community Bank and the fourth largest thrift in the nation, with
total assets of $24.6 billion at March 31, 2005. The Bank serves its
customers through a network of 143 banking offices in New York City,
Long Island, Westchester County, and northern 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. The Bank is the
leading producer of multi-family 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 April 20, 2005 at 10:00
a.m. (ET) to discuss highlights of its first quarter 2005 performance.
The conference call may be accessed by phoning 800-811-0667 (for
domestic calls) or 913-981-4901 (for international calls) and
providing the following access code: 5144058. A replay of the
conference call will be available through midnight on April 27th, 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,"
and following the prompts. The web cast will be archived approximately
two hours following completion of the call through 5:00 p.m. on April
29, 2005.
Forward-looking Statements and Associated Risk Factors
This release, like other written and oral communications presented
by the Company and its authorized 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, 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 "anticipate,"
"believe," "estimate," "expect," "intend," "plan," "project," "seek,"
"strive," "try," or future or conditional 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 our
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 effect 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 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
Company's ability to successfully integrate any assets, liabilities,
customers, systems, and management personnel the Company may acquire
into its operations and its 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 customers; the outcome of pending or threatened litigation or of
other matters before regulatory agencies, whether currently existing
or commencing in the future; changes in accounting principles,
policies, practices, or guidelines; changes in legislation and
regulation; operational issues and/or capital spending 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, and geopolitical factors affecting the Company's
operations, pricing, and services. Additionally, the timing and
occurrence or non-occurrence of events may be subject to circumstances
beyond the Company's control.
Readers are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date of this
release. 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 13 of this release.
NEW YORK COMMUNITY BANCORP, INC.
CONSOLIDATED STATEMENTS OF CONDITION
(in thousands, except share data)
March 31, December 31,
2005 2004
(unaudited)
------------ ------------
Assets
Cash and due from banks $ 196,696 $ 187,679
Money market investments 1,172 1,171
Securities available for sale:
Mortgage-related securities 2,711,797 2,901,039
Debt and equity securities 211,062 207,070
Securities held to maturity:
Mortgage-related securities (estimated
market value of $1,915,114 and
$2,091,748, respectively) 2,027,164 2,166,416
Other securities (estimated market value
of $1,675,465 and $1,826,063,
respectively) 1,651,065 1,806,198
Mortgage loans:
Multi-family 10,889,603 9,842,444
Commercial real estate 2,261,374 2,140,727
Construction 825,205 804,219
1-4 family 483,049 506,116
------------ -----------
Total mortgage loans 14,459,231 13,293,506
Other loans 64,729 102,538
Less: Allowance for loan losses (78,049) (78,057)
------------ ------------
Loans, net 14,445,911 13,317,987
Premises and equipment, net 144,248 148,263
Goodwill 1,937,680 1,951,438
Core deposit intangibles 84,610 87,553
Federal Home Loan Bank of New York stock, at
cost 275,150 232,215
Other assets 925,889 1,030,797
------------ ------------
Total assets $24,612,444 $24,037,826
============ ============
Liabilities and Stockholders' Equity
Deposits:
NOW and money market accounts $ 3,337,556 $ 2,850,218
Savings accounts 2,788,017 3,060,334
Certificates of deposit 3,719,778 3,752,327
Non-interest-bearing accounts 742,937 739,238
------------ ------------
Total deposits 10,588,288 10,402,117
------------ ------------
Official checks outstanding 23,730 16,831
Borrowed funds:
Wholesale borrowings 9,614,391 9,334,953
Junior subordinated debentures 444,510 446,084
Other borrowings 360,266 361,504
------------ ------------
Total borrowed funds 10,419,167 10,142,541
Mortgagors' escrow 122,706 54,555
Other liabilities 259,956 235,368
------------ ------------
Total liabilities 21,413,847 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; 265,478,175 and 265,190,635
shares outstanding, respectively) 2,734 2,734
Paid-in capital in excess of par 3,015,920 3,013,241
Retained earnings (partially restricted) 473,446 452,134
Less: Treasury stock (7,918,277 and
8,205,817 shares, respectively) (217,625) (223,230)
Unallocated common stock held by
ESOP (14,341) (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 (40,816) (20,443)
Net unrealized loss on securities
transferred to held to maturity,
net of tax (17,608) (20,254)
------------ ------------
Total stockholders' equity 3,198,597 3,186,414
------------ ------------
Total liabilities and stockholders' equity $24,612,444 $24,037,826
============ ============
NEW YORK COMMUNITY BANCORP, INC.
CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share data)
(unaudited)
For the Three Months Ended
-------------------------------------
March 31, December 31, March 31,
2005 2004 2004
----------- ----------- -----------
Interest Income:
Mortgage and other loans $188,292 $173,077 $156,199
Mortgage-related securities 59,997 65,498 105,384
Debt and equity securities 33,901 30,872 34,031
Money market investments 204 66 234
----------- ----------- -----------
Total interest income 282,394 269,513 295,848
----------- ----------- -----------
Interest Expense:
NOW and money market accounts 12,391 7,527 6,864
Savings accounts 4,003 4,510 4,097
Certificates of deposit 20,088 14,696 7,268
Borrowed funds 87,090 82,207 64,059
Mortgagors' escrow 66 52 44
----------- ----------- -----------
Total interest expense 123,638 108,992 82,332
----------- ----------- -----------
Net interest income 158,756 160,521 213,516
Provision for loan losses -- -- --
----------- ----------- -----------
Net interest income after
provision for loan losses 158,756 160,521 213,516
----------- ----------- -----------
Non-interest Income:
Fee income 12,911 12,379 13,745
Net securities gains 48 484 9,944
Loss on other-than-temporary
impairment -- (8,209) --
Other 19,049 13,373 13,803
----------- ----------- -----------
Total non-interest income 32,008 18,027 37,492
----------- ----------- -----------
Non-interest Expense:
Operating expenses:
Compensation and benefits 25,401 25,769 25,296
Occupancy and equipment 11,388 10,427 9,537
General and administrative 11,988 13,776 10,605
Other 1,856 1,505 1,505
----------- ----------- -----------
Total operating expenses 50,633 51,477 46,943
Amortization of core deposit
intangibles 2,943 2,860 2,860
----------- ----------- -----------
Total non-interest expense 53,576 54,337 49,803
----------- ----------- -----------
Income before income taxes 137,188 124,211 201,205
Income tax expense 46,106 40,735 71,182
----------- ----------- -----------
Net Income $ 91,082 $ 83,476 $130,023
=========== =========== ===========
Basic earnings per share $0.35 $0.32 $0.50
=========== =========== ===========
Diluted earnings per share $0.35 $0.32 $0.48
=========== =========== ===========
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 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 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 plans; 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.
In the fourth quarter of 2004, a fifth item was added: a charge for
the other-than-temporary impairment of certain FNMA securities.
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 months ended March 31, 2005, December 31, 2004, and March 31,
2004 follows:
For the Three Months Ended
-------------------------------------
March 31, December 31, March 31,
(in thousands) 2005 2004 2004
------------ ------------ -----------
Net income $91,082 $ 83,476 $130,023
Add back:
Amortization and appreciation
of stock-related benefit plans 1,844 2,149 3,290
Associated tax benefits 1,149 3,895 23,315
Dividends on unallocated ESOP
shares 1,164 1,267 1,064
Amortization of core deposit
intangibles 2,943 2,860 2,860
Other-than-temporary impairment
charge -- 8,209 --
------------ ------------ -----------
Total additional contributions to
tangible stockholders' equity 7,100 18,380 30,529
------------ ------------ -----------
Cash earnings $98,182 $101,856 $160,552
============ ============ ===========
NEW YORK COMMUNITY BANCORP, INC.
NET INTEREST INCOME ANALYSIS
(dollars in thousands)
(unaudited)
Three Months Ended
------------------------------------
March 31, 2005
------------------------------------
Average
Average Yield/
Balance Interest Cost
------------ ------------ ----------
Assets:
Interest-earning assets:
Mortgage and other loans, net $13,750,424 $188,292 5.48%
Mortgage-related securities 4,965,405 59,997 4.83
Debt and equity securities 2,203,656 33,901 6.15
Money market investments 31,311 204 2.61
------------ ------------ ----------
Total interest-earning assets 20,950,796 282,394 5.39
Non-interest-earning assets 3,301,352
------------
Total assets $24,252,148
============
Liabilities and Stockholders'
Equity:
Interest-bearing deposits:
NOW and money market accounts $ 3,003,076 $ 12,391 1.65%
Savings accounts 2,921,826 4,003 0.55
Certificates of deposit 3,737,918 20,088 2.15
Mortgagors' escrow 89,733 66 0.29
------------ ------------ ----------
Total interest-bearing deposits 9,752,553 36,548 1.50
Borrowed funds 10,302,170 87,090 3.38
------------ ------------ ----------
Total interest-bearing
liabilities 20,054,723 123,638 2.47
Non-interest-bearing deposits 728,524
Other liabilities 300,118
------------
Total liabilities 21,083,365
Stockholders' equity 3,168,783
------------
Total liabilities and
stockholders' equity $24,252,148
============
Net interest income/interest
rate spread $158,756 2.92%
============ ==========
Net interest-earning assets/net
interest margin $896,073 3.03%
============ ==========
Ratio of interest-earning assets
to interest-bearing liabilities 1.04x
==========
Core deposits $6,653,426 $16,394 0.99%
============ ============ ==========
Three Months Ended
------------------------------------
December 31, 2004
------------------------------------
Average
Average Yield/
Balance Interest Cost
------------ ------------ ----------
Assets:
Interest-earning assets:
Mortgage and other loans, net $12,799,268 $173,077 5.41%
Mortgage-related securities 5,303,209 65,498 4.94
Debt and equity securities 2,270,158 30,872 5.44
Money market investments 14,024 66 1.88
------------ ------------ ----------
Total interest-earning assets 20,386,659 269,513 5.29
Non-interest-earning assets 3,287,525
------------
Total assets $23,674,184
============
Liabilities and Stockholders'
Equity:
Interest-bearing deposits:
NOW and money market accounts $ 2,559,715 $ 7,527 1.18%
Savings accounts 3,104,730 4,510 0.58
Certificates of deposit 3,728,014 14,696 1.58
Mortgagors' escrow 100,746 52 0.21
------------ ------------ ----------
Total interest-bearing deposits 9,493,205 26,785 1.13
Borrowed funds 10,015,122 82,207 3.28
------------ ------------ ----------
Total interest-bearing
liabilities 19,508,327 108,992 2.23
Non-interest-bearing deposits 734,022
Other liabilities 292,885
------------
Total liabilities 20,535,234
Stockholders' equity 3,138,950
------------
Total liabilities and
stockholders' equity $23,674,184
============
Net interest income/interest rate
spread $160,521 3.06%
============ ==========
Net interest-earning assets/net
interest margin $878,332 3.15%
============ ==========
Ratio of interest-earning assets
to interest-bearing liabilities 1.05x
==========
Core deposits $6,398,467 $12,037 0.75%
============ ============ ==========
NEW YORK COMMUNITY BANCORP, INC.
NET INTEREST INCOME ANALYSIS
(dollars in thousands)
(unaudited)
Three Months Ended March 31,
------------------------------------
2005
------------------------------------
Average
Average Yield/
Balance Interest Cost
------------ ------------ ----------
Assets:
Interest-earning assets:
Mortgage and other loans,
net $13,750,424 $188,292 5.48%
Mortgage-related securities 4,965,405 59,997 4.83
Debt and equity securities 2,203,656 33,901 6.15
Money market investments 31,311 204 2.61
------------ ------------ ----------
Total interest-earning assets 20,950,796 282,394 5.39
Non-interest-earning assets 3,301,352
-----------
Total assets $24,252,148
============
Liabilities and Stockholders'
Equity:
Interest-bearing deposits:
NOW and money market accounts $ 3,003,076 $ 12,391 1.65%
Savings accounts 2,921,826 4,003 0.55
Certificates of deposit 3,737,918 20,088 2.15
Mortgagors' escrow 89,733 66 0.29
------------ ------------ ----------
Total interest-bearing deposits 9,752,553 36,548 1.50
Borrowed funds 10,302,170 87,090 3.38
------------ ------------ ----------
Total interest-bearing
liabilities 20,054,723 123,638 2.47
Non-interest-bearing deposits 728,524
Other liabilities 300,118
------------
Total liabilities 21,083,365
Stockholders' equity 3,168,783
------------
Total liabilities and
stockholders' equity $24,252,148
============
Net interest income/interest rate
spread $158,756 2.92%
============ ==========
Net interest-earning assets/net
interest margin $896,073 3.03%
============ ==========
Ratio of interest-earning assets
to interest-bearing liabilities 1.04x
==========
Core deposits $6,653,426 $16,394 0.99%
============ ============ ==========
Three Months Ended March 31,
------------------------------------
2004
-----------------------------------
Average
Average Yield/
Balance Interest Cost
------------ ------------ ----------
Assets:
Interest-earning assets:
Mortgage and other loans, net $10,449,600 $156,199 5.98%
Mortgage-related securities 8,322,228 105,384 5.07
Debt and equity securities 2,529,503 34,031 5.38
Money market investments 63,983 234 1.46
------------ ------------ ----------
Total interest-earning assets 21,365,314 295,848 5.54
Non-interest-earning assets 3,190,781
-----------
Total assets $24,556,095
============
Liabilities and Stockholders'
Equity:
Interest-bearing deposits:
NOW and money market accounts $ 2,385,502 $ 6,864 1.15%
Savings accounts 2,866,805 4,097 0.57
Certificates of deposit 4,095,138 7,268 0.71
Mortgagors' escrow 61,966 44 0.28
------------ ------------ ----------
Total interest-bearing deposits 9,409,411 18,273 0.78
Borrowed funds 11,017,598 64,059 2.33
------------ ------------ ----------
Total interest-bearing
liabilities 20,427,009 82,332 1.61
Non-interest-bearing deposits 637,895
Other liabilities 224,362
------------
Total liabilities 21,289,266
Stockholders' equity 3,266,829
------------
Total liabilities and
stockholders' equity $24,556,095
============
Net interest income/interest rate
spread $213,516 3.93%
============ ==========
Net interest-earning assets/net
interest margin $938,305 4.00%
============ ==========
Ratio of interest-earning assets
to interest-bearing liabilities 1.05x
==========
Core deposits $5,890,202 $10,961 0.74%
============ ============ ==========
NEW YORK COMMUNITY BANCORP, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(in thousands, except share and per share data)
(unaudited)
For the Three Months Ended
--------------------------------------------
March 31, December 31, March 31,
2005 2004 2004
------------- ------------- -------------
GAAP EARNINGS DATA:
Net income $91,082 $83,476 $130,023
Basic earnings per share 0.35 0.32 0.50
Diluted earnings per share 0.35 0.32 0.48
Return on average assets 1.50% 1.41% 2.12%
Return on average tangible
assets 1.64 1.54 2.31
Return on average
stockholders' equity 11.50 10.64 15.92
Return on average tangible
stockholders' equity 32.20 30.41 42.02
Efficiency ratio 26.54 28.83 18.70
Operating expenses to
average assets 0.84 0.87 0.76
Interest rate spread 2.92 3.06 3.93
Net interest margin 3.03 3.15 4.00
Shares used for basic EPS
computation 259,872,413 259,573,357 260,665,050
Shares used for diluted
EPS computation 262,274,300 262,721,215 273,265,204
CASH EARNINGS DATA:
Basic cash earnings per
share $0.38 $0.39 $0.62
Diluted cash earnings per
share 0.37 0.39 0.59
Cash return on average
assets 1.62% 1.72% 2.62%
Cash return on average
tangible assets 1.77 1.88 2.85
Cash return on average
stockholders' equity 12.39 12.98 19.66
Cash return on average
tangible stockholders'
equity 34.71 37.10 51.88
Cash efficiency ratio 25.58 26.41 17.39
At March 31, At December 31,
2005 2004
--------------- ---------------
BALANCE SHEET DATA:
Book value per share $12.26 $12.23
Tangible book value per share 4.51 4.40
Stockholders' equity to total assets 13.00% 13.26%
Tangible stockholders' equity to
tangible assets 5.21 5.22
Tangible stockholders' equity to
tangible assets excluding net
unrealized losses on securities 5.45 5.39
Shares used for book value computation 260,921,443 260,533,784
Total shares issued and outstanding 265,478,175 265,190,635
ASSET QUALITY RATIOS:
Non-performing loans to total loans 0.23% 0.21%
Non-performing assets to total assets 0.14 0.12
Allowance for loan losses to non-
performing loans 236.03 277.31
Allowance for loan losses to total
loans 0.54 0.58
CONTACT: New York Community Bancorp, Inc.
Ilene A. Angarola, 516-683-4420
First Senior Vice President
Investor Relations