Exhibit 99.1
New York Community Bancorp, Inc. Reports
2nd Quarter 2005 Diluted GAAP EPS of $0.33 and Diluted Cash
EPS of $0.35(1); Board of Directors Declares $0.25 per Share Dividend
WESTBURY, N.Y.--(BUSINESS WIRE)--July 20, 2005--2nd Quarter 2005
Highlights
-- Loan originations totaled $2.0 billion, including $1.5 billion
of multi-family loans
-- Multi-family loans totaled $12.0 billion at quarter-end, up
$2.1 billion, or 21%, year-to-date and $3.4 billion, or 40%,
year-over-year
-- Loans totaled $15.7 billion at quarter-end, up $2.3 billion,
or 17%, year-to-date and $3.8 billion, or 32%, year-over-year
-- Securities totaled $6.0 billion at quarter-end, down $1.1
billion, or 16%, year-to-date and $7.6 billion, or 56%, from
the level recorded prior to the 2Q 2004 repositioning of the
balance sheet
-- Securities equaled 23.7% of total assets at quarter-end, down
from 29.5% at the end of December and from 46.5%, pre-balance
sheet repositioning
-- Deposits totaled $11.5 billion at quarter-end, up $1.1
billion, or 11%, year-to-date and $1.5 billion, or 15%,
year-over-year
-- Tangible stockholders' equity equaled 5.44% of tangible assets
at quarter-end, excluding net unrealized losses on securities;
including net unrealized losses, the ratio was 5.31%
-- The Bank's leverage and Tier 1 capital ratios equaled 8.47%
and 15.30%, respectively, at quarter-end
New York Community Bancorp, Inc. (NYSE: NYB) today reported second
quarter 2005 earnings of $86.5 million, or $0.33 per diluted share,
generating a 1.53% return on average tangible assets and a 29.66%
return on average tangible stockholders' equity. The Company earned
$91.1 million, or $0.35 per diluted share, in the trailing quarter and
$42.8 million, or $0.16 per diluted share, in the second quarter of
2004.
The Company also reported second quarter 2005 cash earnings of
$92.6 million, or $0.35 per diluted share, generating a 1.61% return
on average tangible assets and a 31.13% return on average tangible
stockholders' equity. (1)
For the six months ended June 30, 2005, the Company reported GAAP
earnings of $177.6 million, or $0.68 per diluted share, as compared to
$172.8 million, or $0.64 per diluted share, in the first six months of
2004. The Company's cash earnings for the six months ended June 30,
2005 amounted to $190.8 million, or $0.73 per diluted share, and
generated a 1.69% return on average tangible assets and a 32.87%
return on average tangible stockholders' equity. (1)
In the second quarter of 2005, the Company recorded an after-tax
gain of $1.7 million on the sale of certain one-to-four family
mortgage loans; in the first quarter of the year, the Company's
earnings included an after-tax gain of $4.0 million on the sale of
certain Bank-owned properties. In the second quarter of 2004, the
Company recorded an after-tax loss of $94.9 million, or $0.35 per
diluted share, on the sale of securities (the "repositioning charge"),
in connection with the repositioning of its balance sheet at the end
of June 2004. To reduce its exposure to market and interest rate risk,
the Company sold securities totaling $5.1 billion, and utilized the
proceeds to reduce its wholesale borrowings by a like amount. At the
same time, the Company extended $2.4 billion of wholesale borrowings
to an average maturity of three years, with an average cost of 3.32%,
and reclassified $1.0 billion of available-for-sale securities as
held-to-maturity.
In the twelve months since the balance sheet was repositioned, the
Company increased its loan portfolio by $3.8 billion, or 32.1%,
including a $3.4 billion, or 40.0% increase in multi-family loans,
offsetting a $2.5 billion, or 29.3%, reduction in securities. During
this time, wholesale borrowings were reduced by $665.3 million, or
6.7%, and an additional $2.0 billion in wholesale debt was extended to
an average maturity of two years, with an average cost of 3.37%.
Deposits rose $1.5 billion, or 15.2% during the twelve months ended
June 30, 2005, contributing to a 420-basis point improvement in the
ratio of deposits to total assets.
In view of the significant difference in its balance sheet as a
result of the repositioning and these subsequent actions, the Company
believes that a comparison of its second quarter 2005 and first
quarter 2005 results is more germane to understanding the progress
made since the balance sheet was repositioned and its current
direction, than a comparison of its second quarter 2005 and 2004
results.
Board of Directors Declares $0.25 per Share Dividend, Payable on
August 16th
Commenting on the Company's second quarter 2005 performance,
President and Chief Executive Officer Joseph R. Ficalora stated, "We
are pleased with the results we produced in the second quarter, which
are indicative of our fundamental strengths: the capacity to originate
loans, the quality of our assets, and the ability to maintain a high
level of efficiency. Loan originations totaled $2.0 billion during the
quarter, exceeding the trailing-quarter level, while the average yield
on loans held firm at 5.48% despite the decline in market yields over
the period. Non-performing assets represented 0.17% of total assets,
and our efficiency ratio was also solid, at 27.55%.
"Like the rest of our sector, we have been challenged by the
flattening slope of the yield curve. While margin pressure has yet to
recede, we believe our accumulated earnings are more than sufficient
to support the continued payment of our quarterly cash dividend at the
current rate. Once again affirming the strength of our commitment, I
am pleased to report that our Board of Directors last night declared a
$0.25 per share dividend, payable on August 16, 2005 to shareholders
of record at the close of business on August 1, 2005," Mr. Ficalora
announced.
"We also are especially pleased by the progress we've made over
the last four quarters to enhance the quality of our balance sheet,"
Mr. Ficalora continued. "Each of the goals we presented this time last
year has been accomplished, either on or ahead of schedule. For
example, our securities portfolio now stands at $6.0 billion,
representing 23.7% of total assets, well below 46.5%, the
pre-repositioning percentage, as well as the 25% target we had set for
the end of this year. Deposits are up more than 15%, reflecting our
ongoing efforts to expand and diversify our sources of funds.
"Wholesale borrowings are down year-over-year, given the rise in
deposits, which were used, in part, to pay down most of our short-term
borrowings in the past six months. During this time, with the steady
rise in short-term rates, which has been expected to continue, we also
extended $2.0 billion of wholesale borrowings to an average maturity
of two years, with an average cost of 3.37%. The long-term benefit of
this action is expected to outweigh the negative impact on our
year-to-date earnings, enhancing our future earnings and our position
with regard to interest rate risk.
"The growth in our loan portfolio has been consistent with our
stated intention of transitioning from securities to loans at enhanced
yields and with reduced extension risk. In this regard, the success we
achieved in the first half of this year makes our more modest year-end
goal for growth more easily attainable in the more difficult period
that lies ahead.
"As for our capital strength, this too reflects improvement," Mr.
Ficalora stated. "While growing our core business, we realized a 24%
increase in tangible stockholders' equity over the past four quarters,
and increased our ratio of tangible equity to tangible assets by 80
basis points.
"While enhancing our balance sheet quality, we are also making
improvements to customer service, and taking steps to broaden our
customer base," Mr. Ficalora said. "Earlier this month, our
application to open a limited-purpose bank to accept municipal and
other government deposits received Federal Reserve Bank of New York
approval. As a result, we expect to see an increase in public funds by
quarter-end. While the establishment of a Banking Business Development
Branch in Queens enabled us to attract New York State and City
deposits, the limited-purpose bank will enable us to accept municipal
deposits from cities and towns throughout the state.
"We've also formed an outsourcing partnership with American Home
Mortgage Corp. (NYSE: AHM), one of the nation's leading mortgage
lenders, which has enabled us to enhance our one-to-four family
lending capabilities. As our new third-party conduit, AHM has made it
possible for us to provide an expanded product menu, extremely
competitive rates of interest, and personal service, with AHM
representatives assigned to some of our branches, and available to
meet with our customers in their homes or where they work," Mr.
Ficalora commented.
"With regard to multi-family loans, it's fair to say that the
volume of loans produced in the second quarter is unlikely to be
matched in the quarters immediately ahead. While competition has
clearly stepped up, our greater concern is quality of product. While
loan growth is certainly one of our goals, so too is maintaining our
standards and our solid record of asset quality. With this in mind,
our current pipeline of $851 million includes approximately $614
million of multi-family loans.
"I would like to add that our Co-op City loan is performing as
expected, and has recently yielded an additional benefit. Reflecting
the efforts of our newly established Business Banking Group, we have
recently won the opportunity to provide lock-box and other depository
services for the management of Co-op City, thereby enhancing the reach
of our local branch into this community of 55,000 residents. Our plans
to attract health service accounts are also in place and are expected
to contribute to the further expansion of our deposit mix in the
quarters ahead," Mr. Ficalora said.
Balance Sheet Summary
The Company recorded total assets of $25.2 billion at June 30,
2005, a $1.2 billion increase from the level recorded at December 31,
2004. While total loans rose $2.3 billion, or 17.1%, in the first six
months of 2005, the increase was tempered by a $1.1 billion, or 15.5%,
reduction in total securities, in keeping with the Company's strategic
focus on repositioning the balance sheet to mitigate market and
interest rate risk. Loans represented 62.2% of total assets at the end
of June and 55.7% at the end of December; in contrast, securities
represented 23.7% and 29.5% of total assets at the corresponding
dates.
Loans
The Company recorded total loans of $15.7 billion at the close of
the second quarter, up from $13.4 billion at December 31, 2004. The
increase was driven by high-volume loan production, with year-to-date
originations totaling $3.8 billion, including $2.0 billion in the
second quarter of the year. Multi-family loans accounted for 76.5% of
loans produced in the second quarter, with commercial real estate and
construction loans accounting for 15.0% and 6.8%, respectively. The
growth of the loan portfolio was partly tempered by the aforementioned
sale of one-to-four family loans totaling $170.7 million in the second
quarter, and by year-to-date repayments of $1.3 billion, including
$644.5 million in the three months ended June 30, 2005.
Consistent with management's focus on multi-family loan
production, the portfolio of multi-family loans grew $2.1 billion, or
21.4%, from the end of December, to $12.0 billion, representing 76.2%,
of total loans, at June 30, 2005. The increase was fueled by
year-to-date multi-family loan originations totaling $2.9 billion,
including $1.5 billion in the second quarter of the year. At June 30,
2005, the multi-family loan portfolio had an average principal balance
of $3.4 million and a loan-to-value ratio of 60.1%. The expected
weighted average life of the portfolio was 3.6 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 and, in doing so, generates 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 $2.5 billion at June 30,
2005, representing 16.0% of total loans outstanding and a $368.2
million, or 17.2%, increase from the balance recorded at December 31,
2004. The increase reflects year-to-date originations totaling $474.7
million, including $298.8 million in the second quarter of the year.
At June 30, 2005, the portfolio had an average principal balance of
$2.5 million and a loan-to-value ratio of 57.6%; the expected weighted
average life of the portfolio was 4.1 years at that date.
The Company's commercial real estate loan portfolio is largely
secured by mixed-use and office buildings in New York City and
national credit retail shopping centers in New York City and Long
Island. Commercial real estate loans feature terms that parallel the
terms featured by the Company's multi-family credits. The Company has
not had a loss on a commercial real estate loan in more than ten
years.
The construction loan portfolio totaled $854.7 million at June 30,
2005, representing 5.4% of total loans outstanding and a $50.5 million
increase from the year-end 2004 amount. The increase reflects
year-to-date originations totaling $314.9 million, including $136.0
million in the second quarter of the year. The majority of the
portfolio consists of loans for the construction of one-to-four family
homes on Long Island, where the Bank is the primary lender 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, repayments, and the
aforementioned sale of loans totaling $170.7 million, the balance of
one-to-four family loans declined $219.1 million, or 43.3%, from the
year-end 2004 level to $287.0 million, representing 1.8% of total
loans, at June 30, 2005. The remaining loans in portfolio are seasoned
loans that were originated before the conduit policy was adopted or
that were acquired in the Company's merger transactions in 2000, 2001,
and 2003.
Asset Quality
Non-performing assets totaled $42.9 million at June 30, 2005,
representing 0.17% of total assets, as compared to $33.8 million at
March 31, 2005, representing 0.14% of total assets, and to $28.7
million, representing 0.12% of total assets, at December 31, 2004.
Non-performing loans accounted for $42.4 million, $33.1 million, and
$28.1 million of the respective totals, and represented 0.27%, 0.23%,
and 0.21%, respectively, of total loans at the corresponding dates.
Included in the June 30, 2005 amounts is a $10.7 million
construction loan that is still accruing interest and is expected to
be satisfied in full in the second half of the year. Non-accrual loans
totaled $31.7 million at that date, including mortgage loans of $31.1
million and other loans of $613,000. Included in the balance of
non-accrual mortgage loans is a construction loan of $7.0 million
which management currently expects will be satisfied before the end of
the year.
The allowance for loan losses totaled $78.0 million at June 30,
2005, down eleven thousand dollars from the balance recorded at
December 31, 2004. While the Company recorded no provisions for loan
losses in the first half of this year, it charged off eleven thousand
dollars of consumer loans acquired in merger transactions, including
three thousand dollars in the second quarter. The allowance for loan
losses equaled 0.50% of total loans at June 30, 2005 and 184.22% of
non-performing loans at the same date. Excluding the $17.7 million in
construction loans that are expected to be satisfied from the
calculation, the allowance for loan losses represents 316.09% of
non-performing loans.
Other real estate owned totaled $485,000 at June 30, 2005, down
$205,000 from the March 31, 2005 level and $81,000 from the level
recorded at year-end 2004. The June 30, 2005 amount consists of three
residential properties which are currently in the process of being
marketed for sale. The Company does not expect to incur a loss when
such properties are sold.
Securities
Securities totaled $6.0 billion at June 30, 2005, down $1.1
billion, or 15.5%, from the year-end 2004 balance and down $2.5
billion, or 29.3%, from the balance recorded at June 30, 2004. During
the quarter, management took advantage of favorable market conditions
to reduce the ratio of securities to total assets. At June 30, 2005,
securities represented 23.7% of total assets, ahead of management's
25% year-end 2005 target, and significantly below the respective 29.5%
and 35.1% ratios at the earlier dates.
The reduction in securities was consistent with management's focus
on repositioning the balance sheet to enhance its market and interest
rate risk profile. In addition to redemptions approximating $613
million, the year-to-date reduction in securities reflects sales of
$514.7 million, including $359.2 million in the second quarter of the
year.
Available-for-sale securities represented $2.4 billion, or 40.9%,
of total securities at the close of the current second quarter, and
were down $660.5 million and $1.5 billion, respectively, from the
amounts recorded at December 31 and June 30, 2004. Mortgage-related
securities represented $2.3 billion of the June 30, 2005 total, and
were down $643.4 million and $1.3 billion, respectively, from the
balances recorded at the corresponding dates. Other securities
represented the remaining $189.9 million of available-for-sale
securities at the close of the current second quarter, and were down
$17.1 million and $143.0 million, respectively, from the balances
recorded at December 31 and June 30, 2004.
The after-tax net unrealized loss on securities available for sale
was $17.6 million at the close of the current second quarter, down
from $20.4 million and $84.4 million, respectively, at December 31 and
June 30, 2004. The improvement is attributable to two primary factors:
the planned reduction in securities over the past four quarters, and
the decline in market interest rates during the same time.
Held-to-maturity securities represented $3.5 billion, or 59.1%, of
total securities at the close of the current second quarter, and were
down $437.6 million and $995.0 million, respectively, from the amounts
recorded at December 31 and June 30, 2004. Mortgage-related securities
accounted for $1.9 billion of the June 30, 2005 total, down $282.6
million and $696.7 million, respectively, from the balances recorded
at the corresponding dates. Other securities totaled $1.7 billion at
the close of the current second quarter, and were down $155.0 million
and $298.3 million, respectively, from the balances recorded at
December 31 and June 30, 2004.
Sources of Funds
Loan production is supported by four primary funding sources:
principal repayments and interest on loans; cash flows from securities
sales and redemptions; wholesale borrowings in the form of FHLB-NY
advances and repurchase agreements; and deposit growth.
In connection with management's focus on reducing securities
through a combination of sales and redemptions, securities generated
cash flows of approximately $1.1 billion in the first six months of
the year, including approximately $669 million in the second quarter.
Loan repayments generated cash flows of $1.3 billion in the current
six-month period, including $644.5 million in the three months ended
June 30, 2005.
Since the repositioning of the balance sheet at the end of last
year's second quarter, deposits have figured more significantly in the
Company's funding mix. Reflecting management's focus, deposits totaled
$11.5 billion at June 30, 2005, signifying a $1.1 billion increase
from the year-end 2004 balance, including a $949.3 million increase in
the second quarter, and a $1.5 billion increase from the balance
recorded at June 30, 2004. Core deposits (consisting of NOW and money
market accounts, savings accounts, and non-interest-bearing accounts)
totaled $7.4 billion at the close of the current second quarter,
representing 63.8% of total deposits, and were up $716.4 million and
$1.2 billion, respectively, from the December 31 and June 30, 2004
amounts. Certificates of deposit ("CDs") accounted for $4.2 billion,
or 36.2%, of the June 30, 2005 balance, an increase from $3.8 billion
at each of the earlier dates.
While savings accounts declined $433.7 million and $219.1 million,
respectively, to $2.6 billion, these declines were substantially
offset by growth in NOW and money market accounts and
non-interest-bearing accounts. NOW and money market accounts totaled
$4.0 billion at June 30, 2005, up $1.1 billion and $1.4 billion,
respectively, from the year-end and June 30, 2004 totals.
Non-interest-bearing accounts totaled $747.6 million at the close of
the current second quarter, and were up $8.4 million and $10.5
million, respectively, from the balances recorded at the earlier
dates.
The increase in deposits has been supported by various actions
taken to expand and diversify the deposit base. In addition to
establishing a Private Banking Group early this year to attract
deposits from local developers and property owners, the Company more
recently established a Banking Development District Branch in Queens
to accept New York State and City deposits, and introduced a new CD
product featuring a competitive interest rate. Toward the end of June,
the Company introduced MyBankingDirect.com, a nationwide online
banking service, and began partnering with local colleges to develop
depository relationships with students, while also offering new
payment solutions to the colleges themselves.
At the end of the quarter, the Company received the approval of
the Federal Reserve Bank of New York to establish a limited-purpose
commercial bank, which will enable it to accept deposits from
municipalities throughout the state. The new bank will operate as a
subsidiary of New York Community Bank under the name "New York
Commercial Bank," and is expected to begin accepting public funds
during the third quarter of 2005, once all the necessary regulatory
approvals have been received. While awaiting receipt of regulatory
approvals, the Company has utilized brokered deposits to supplement
the deposits generated through its various other initiatives in order
to fund the high level of loans produced.
In addition to funding the increase in loans, the growth in
deposits enabled the Company to pay down most of its short-term
wholesale borrowings over the last three months. Wholesale borrowings
totaled $9.3 billion at June 30, 2005, down $355.6 million from the
March 31, 2005 level, and down $76.1 million and $665.3 million,
respectively, from the levels recorded at December 31 and June 30,
2004. Including junior subordinated debentures of $448.8 million and
other borrowings of $359.1 million, the Company had total borrowed
funds of $10.1 billion at June 30, 2005.
Stockholders' Equity
The Company recorded stockholders' equity of $3.3 billion at June
30, 2005, signifying a $63.9 million increase from the balance
recorded at December 31, 2004. The June 30, 2005 amount was equivalent
to 12.90% of total assets and a book value of $12.44 per share, based
on 261,225,054 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 June 30,
2005, up $83.5 million from the balance recorded at December 31, 2004.
Excluding net unrealized losses on securities from the respective
totals, tangible stockholders' equity equaled 5.44% and 5.39% of
average tangible assets at the corresponding dates. Including net
unrealized losses, tangible stockholders' equity equaled 5.31% and
5.22% of average tangible assets, respectively.
The increase in tangible stockholders' equity reflects $190.8
million in cash earnings, consisting of net income of $177.6 million
and additional contributions to tangible stockholders' equity of $13.2
million, in the first six months of 2005.(1) During this period, the
Company distributed dividends totaling $130.4 million and allocated
$1.1 million for the repurchase of 57,402 shares in plan-related
common stock transactions. At June 30, 2005, there were 1,624,525
shares still available for repurchase under the Board of Directors'
share repurchase authorization on April 20, 2004.
At June 30, 2005, the Company's capital ratios continued to exceed
the minimum federal requirements for a bank holding company and the
Bank's capital ratios continued to exceed the minimum levels required
for classification as a "well capitalized" institution under the FDIC
Improvement Act. The following table sets forth the Bank's regulatory
capital levels at June 30, 2005 and the minimum federal requirements
for well capitalized classification.
Regulatory Capital Analysis (Bank Only)
At June 30, 2005
--------------------------------------------------------
Risk-Based Capital
-------------------------------------
Leverage Capital Tier 1 Total
------------------ ------------------ ------------------
(dollars in Amount Ratio Amount Ratio Amount Ratio
thousands)
----------- ------ ----------- ------ ----------- ------
Total equity $1,951,164 8.47% $1,951,164 15.30% $2,029,210 15.91%
Minimum
regulatory
capital
requirement 1,151,196 5.00 765,366 6.00 1,275,611 10.00
----------- ------ ----------- ------ ----------- ------
Excess $ 799,968 3.47% $1,185,798 9.30% $ 753,599 5.91%
=========== ====== =========== ====== =========== ======
Earnings Summary for the Three Months Ended June 30, 2005
Net Interest Income
The Company recorded net interest income of $149.1 million in the
current second quarter, as compared to $158.8 million in the first
quarter of the year. The reduction reflects the impact of the
significant flattening of the yield curve, as the rise in short-term
rates continued unabated, and intermediate and long-term rates
remained at historical lows.
While the Company recorded an $8.7 million increase in interest
income over the course of the quarter, this increase was exceeded by
an $18.4 million rise in interest expense during the same time. The
linked-quarter increase in interest income was driven by a $937.8
million rise in the average balance of interest-earning assets to
$21.9 billion, which was tempered by a seven-basis point decline in
the average yield to 5.32%. The higher average balance reflects a $1.4
billion, or 10.2%, increase in average loans to $15.2 billion, which
offset a $465.7 million decline in the average balances of
mortgage-related and other securities, combined. The linked-quarter
drop in the average yield was largely due to the lower yields provided
by securities during the quarter; the average yield on loans held firm
at 5.48%, despite the fact that the contribution of prepayment
penalties to interest income declined to $2.1 million in the current
second quarter from $4.7 million in the first quarter of the year.
The linked-quarter rise in interest expense was attributable to a
$766.2 million increase in the average balance of interest-bearing
liabilities to $20.8 billion, coupled with a 26-basis point increase
in the average cost of funds to 2.73%. Consistent with management's
focus on deposits, the higher average balance of interest-bearing
liabilities was largely attributable to a $687.8 million increase in
the average balance of interest-bearing deposits to $10.4 billion; the
average balance of borrowed funds rose $78.4 million, to $10.4
billion, during the same time. The higher average cost reflects the
rise in short-term interest rates during the current second quarter,
which contributed to a 32-basis point rise in the average cost of
deposits and a 26-basis point rise in the average cost of borrowed
funds.
Reflecting the same combination of factors that contributed to the
linked-quarter reduction in net interest income, the Company's net
interest margin narrowed to 2.73% in the current second quarter from
3.03% in the trailing three-month period. To reduce its exposure to
future short-term interest rate increases, the Company paid down most
of its short-term wholesale borrowings in the first and second
quarters, and extended an additional $2.0 billion of wholesale
borrowings to an average maturity of two years with an average cost of
3.37% during the same time. While these actions contributed to the
reduction in net interest margin in the second quarter, they are
expected to benefit the margin in the quarters ahead.
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 primarily
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 second quarter of 2005, the Company recorded fee income of
$11.0 million, as compared to $12.9 million in the first quarter of
the year. The reduction was largely attributable to a decline in
prepayment penalties, consistent with the slowdown in multi-family
loan refinancing activity resulting from the directional uncertainty
of the five-year Treasury rate.
Other income totaled $16.0 million in the current second quarter,
as compared to $19.0 million in the first quarter of 2005. Included in
the second quarter amount was a $2.8 million pre-tax gain on the sale
of certain one-to-four family loans; included in the first quarter
amount was a $6.1 million pre-tax gain on the sale of certain
Bank-owned properties. Excluding these respective amounts, other
income amounted to $13.2 million in the current second quarter and
$12.9 million in the first quarter of the year. BOLI income
represented $6.2 million and $5.4 million of the respective totals,
with revenues from PBC accounting for $2.5 million and $2.4 million,
respectively.
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 second quarter of 2005, the Company recorded total
non-interest expense of $52.2 million, down $1.3 million from the
level recorded in the three months ended March 31, 2005. Operating
expenses represented $49.3 million of the second quarter 2005 total
and 0.79% of average assets, as compared to $50.6 million,
representing 0.84% of average assets, in the first quarter of 2005.
The linked-quarter reduction in operating expenses stemmed from
three components: a $242,000 decline in compensation and benefits
expense to $25.2 million; a $303,000 decline in occupancy and
equipment expense to $11.1 million; and an $869,000 decline, to $11.1
million, in G&A expense. In the first quarter of 2005, the Company's
occupancy and equipment expense was boosted by certain seasonal
factors, and its G&A expense by the costs of a marketing campaign.
Income Tax Expense
Income tax expense totaled $40.3 million in the current second
quarter, down from $46.1 million in the first quarter of 2005. The
linked-quarter reduction was attributable to a $10.4 million decline
in pre-tax income to $126.8 million and a reduction in the effective
tax rate, to 31.8% from 33.6%. The reduction in the effective tax rate
partially reflects the Company's receipt of a New Markets Tax Credit
allocation, which entitles the Company to recognize $16.4 million in
tax credits from the U.S. Treasury Department over a period of seven
years, beginning in the second quarter of 2005.
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 $25.2 billion at June 30, 2005. The Bank serves its
customers through a network of 141 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 mortgage loans for portfolio in New
York City and the third largest thrift depository in the New York
metropolitan region. Additional information about the Company is
available at www.myNYCB.com.
Post-Earnings Release Conference Call
The Company will host a conference call on July 20, 2005 at 9:00
a.m. (ET) to discuss the highlights of its second quarter 2005
performance. The conference call may be accessed by phoning
800-310-6649 (for domestic calls) or 719-457-2693 (for international
calls) and providing the following access code: 2498515. A replay of
the conference call will be available through midnight on July 29th,
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 August
3, 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 the
Company's control, that could cause actual conditions, events, or
results to differ significantly from those described in the
forward-looking statements. These factors include, but are not limited
to, general economic conditions, either nationally or locally in some
or all of the areas in which we conduct our business; conditions in
the securities markets or the banking industry; changes in interest
rates, which may affect our net income or future cash flows; changes
in deposit flows, and in the demand for deposit, loan, and investment
products and other financial services in our local markets; changes in
real estate values, which could impact the quality of the assets
securing our loans; changes in the quality or composition of the loan
or investment portfolios; changes in competitive pressures among
financial institutions or from non-financial institutions; the ability
to successfully integrate any assets, liabilities, customers, systems,
and management personnel we may acquire into our operations and our
ability to realize related revenue synergies and cost savings within
expected time frames; the Company's timely development of new and
competitive products or services in a changing environment, and the
acceptance of such products or services by our customers; the outcome
of pending or threatened litigation 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 15 of this release.
NEW YORK COMMUNITY BANCORP, INC.
CONSOLIDATED STATEMENTS OF CONDITION
(in thousands, except share data)
June 30, December 31,
2005 2004
(unaudited)
------------ ------------
Assets
Cash and due from banks $ 235,981 $ 187,679
Money market investments 1,173 1,171
Securities available for sale:
Mortgage-related securities 2,257,655 2,901,039
Other securities 189,942 207,070
Securities held to maturity:
Mortgage-related securities (estimated
market value of $1,825,062 and
$2,091,748, respectively) 1,883,800 2,166,416
Other securities (estimated market value
of $1,692,924 and $1,826,063,
respectively) 1,651,246 1,806,198
Mortgage loans:
Multi-family 11,953,234 9,842,444
Commercial real estate 2,508,922 2,140,727
Construction 854,747 804,219
1-4 family 287,031 506,116
------------ -----------
Total mortgage loans 15,603,934 13,293,506
Other loans 80,443 102,538
Less: Allowance for loan losses (78,046) (78,057)
------------ ------------
Loans, net 15,606,331 13,317,987
Federal Home Loan Bank of New York stock, at
cost 284,314 232,215
Premises and equipment, net 141,830 148,263
Goodwill 1,937,680 1,951,438
Core deposit intangibles 81,680 87,553
Other assets 933,060 1,030,797
------------ ------------
Total assets $25,204,692 $24,037,826
============ ============
Liabilities and Stockholders' Equity
Deposits:
NOW and money market accounts $ 3,991,896 $ 2,850,218
Savings accounts 2,626,639 3,060,334
Certificates of deposit 4,171,401 3,752,327
Non-interest-bearing accounts 747,630 739,238
------------ ------------
Total deposits 11,537,566 10,402,117
------------ ------------
Official checks outstanding 30,783 16,831
Borrowed funds:
Wholesale borrowings 9,258,839 9,334,953
Junior subordinated debentures 448,797 446,084
Other borrowings 359,114 361,504
------------ ------------
Total borrowed funds 10,066,750 10,142,541
Mortgagors' escrow 74,851 54,555
Other liabilities 244,478 235,368
------------ ------------
Total liabilities 21,954,428 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; 265,681,667 and
265,190,635 shares outstanding,
respectively) 2,734 2,734
Paid-in capital in excess of par 3,017,639 3,013,241
Retained earnings (partially restricted) 493,965 452,134
Less: Treasury stock (7,714,785 and
8,205,817 shares, respectively) (213,875) (223,230)
Unallocated common stock held by
ESOP (14,026) (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 (17,580) (20,443)
Net unrealized loss on securities
transferred to held to maturity, net of
tax (15,480) (20,254)
------------ ------------
Total stockholders' equity 3,250,264 3,186,414
------------ ------------
Total liabilities and stockholders' equity $25,204,692 $24,037,826
============ ============
NEW YORK COMMUNITY BANCORP, INC.
CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share data)
(unaudited)
For the For the
Three Months Ended Six Months Ended
----------------------------- -------------------
June 30, March 31, June 30, June 30, June 30,
2005 2005 2004 2005 2004
--------- --------- --------- --------- ---------
Interest Income:
Mortgage and
other loans $207,826 $188,292 $160,822 $396,118 $317,021
Mortgage-related
securities 51,139 59,997 132,533 111,136 237,917
Other securities 32,027 33,901 35,782 65,928 69,813
Money market
investments 137 204 63 341 297
--------- --------- --------- --------- ---------
Total interest
income 291,129 282,394 329,200 573,523 625,048
--------- --------- --------- --------- ---------
Interest Expense:
NOW and money
market accounts 20,015 12,391 5,355 32,406 12,219
Savings accounts 3,346 4,003 3,434 7,349 7,531
Certificates of
deposit 24,049 20,088 10,446 44,137 17,714
Borrowed funds 94,521 87,090 74,667 181,611 138,726
Mortgagors'
escrow 67 66 71 133 115
--------- --------- --------- --------- ---------
Total interest
expense 141,998 123,638 93,973 265,636 176,305
--------- --------- --------- --------- ---------
Net interest
income 149,131 158,756 235,227 307,887 448,743
Provision for loan
losses -- -- -- -- --
--------- --------- --------- --------- ---------
Net interest
income after
provision
for loan
losses 149,131 158,756 235,227 307,887 448,743
--------- --------- --------- --------- ---------
Non-interest Income:
Fee income 11,049 12,911 18,213 23,960 31,958
Net securities
gains (losses) 2,868 48 (157,215) 2,916 (147,271)
Other 15,969 19,049 12,757 35,018 26,560
--------- --------- --------- --------- ---------
Total non-interest
income 29,886 32,008 (126,245) 61,894 (88,753)
--------- --------- --------- --------- ---------
Non-interest Expense:
Operating expenses:
Compensation and
benefits 25,159 25,401 23,499 50,560 48,795
Occupancy and
equipment 11,085 11,388 9,771 22,473 19,308
General and
administrative 11,119 11,988 12,340 23,107 22,945
Other 1,953 1,856 2,145 3,809 3,650
--------- --------- --------- --------- ---------
Total operating
expenses 49,316 50,633 47,755 99,949 94,698
Amortization of
core deposit
intangibles 2,930 2,943 2,860 5,873 5,720
--------- --------- --------- --------- ---------
Total non-interest
expense 52,246 53,576 50,615 105,822 100,418
--------- --------- --------- --------- ---------
Income before
income taxes 126,771 137,188 58,367 263,959 259,572
Income tax expense 40,299 46,106 15,612 86,405 86,794
--------- --------- --------- --------- ---------
Net Income $ 86,472 $ 91,082 $ 42,755 $177,554 $172,778
========= ========= ========= ========= =========
Basic earnings
per share $0.33 $0.35 $0.16 $0.68 $0.66
========= ========= ========= ========= =========
Diluted
earnings per
share $0.33 $0.35 $0.16 $0.68 $0.64
========= ========= ========= ========= =========
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.
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 June 30, 2005, March 31, 2005, and June 30, 2004
and the six months ended June 30, 2005 and 2004 follows:
For the For the
Three Months Ended Six Months Ended
----------------------------- -------------------
(in thousands,
except per June 30, March 31, June 30, June 30, June 30,
share data) 2005 2005 2004 2005 2004
--------- --------- --------- --------- ---------
Net income $86,472 $91,082 $42,755 $177,554 $172,778
Additional
contributions to
tangible
stockholders'
equity:
Amortization and
appreciation of
shares held in
stock-related
benefit plan 1,792 1,844 2,041 3,636 5,331
Associated tax
benefits 242 1,149 2,216 1,391 25,531
Dividends on
unallocated
ESOP shares 1,164 1,164 1,267 2,328 2,331
Amortization of
core deposit
intangibles 2,930 2,943 2,860 5,873 5,720
--------- --------- --------- --------- ---------
Total additional
contributions to
tangible
stockholders equity 6,128 7,100 8,384 13,228 38,913
--------- --------- --------- --------- ---------
Cash earnings $92,600 $98,182 $51,139 $190,782 $211,691
========= ========= ========= ========= =========
Adjustments to cash
earnings:
Net loss on sale
of securities
relating to
balance sheet
repositioning -- -- 157,215 -- 157,215
Income tax
benefit on
adjustment -- -- (62,336) -- (62,336)
--------- --------- --------- --------- ---------
Cash earnings
excluding
repositioning
charge $92,600 $98,182 $146,018 $190,782 $306,570
========= ========= ========= ========= =========
CASH EARNINGS DATA:
Basic cash earnings
per share $0.36 $0.38 $0.20 $0.73 $0.81
Diluted cash
earnings per share 0.35 0.37 0.19 0.73 0.78
Cash return on
average assets 1.48% 1.62% 0.74% 1.55% 1.62%
Cash return on
average tangible
assets 1.61 1.77 0.79 1.69 1.75
Cash return on
average
stockholders'
equity 11.54 12.39 6.55 11.96 13.15
Cash return on
average tangible
stockholders'
equity 31.13 34.71 18.87 32.87 35.70
CASH EARNINGS DATA
EXCLUDING
2Q 2004
REPOSITIONING
CHARGE:
Basic cash earnings
per share $0.36 $0.38 $0.56 $0.73 $1.18
Diluted cash
earnings per share 0.35 0.37 0.55 0.73 1.13
Cash return on
average assets 1.48% 1.62% 2.10% 1.55% 2.34%
Cash return on
average tangible
assets 1.61 1.77 2.26 1.69 2.54
Cash return on
average
stockholder's
equity 11.54 12.39 18.71 11.96 19.04
Cash return on
average tangible
stockholders'
equity 31.13 34.71 53.87 32.87 51.70
Cash efficiency
ratio 26.55 25.58 17.17 26.05 17.28
NEW YORK COMMUNITY BANCORP, INC.
NET INTEREST INCOME ANALYSIS
(dollars in thousands)
(unaudited)
Three Months Ended
----------------------------------
June 30, 2005
----------------------------------
Average
Average Yield/
Balance Interest Cost
------------ ---------- ----------
Assets:
Interest-earning assets:
Mortgage and other loans, net $15,159,345 $207,826 5.48%
Mortgage-related securities 4,565,084 51,139 4.48
Other securities 2,138,316 32,027 5.99
Money market investments 25,839 137 2.12
------------ ---------- ----------
Total interest-earning assets 21,888,584 291,129 5.32
Non-interest-earning assets 3,183,082
------------
Total assets $25,071,666
============
Liabilities and Stockholders'
Equity:
Interest-bearing deposits:
NOW and money market accounts $ 3,716,640 $ 20,015 2.15%
Savings accounts 2,711,365 3,346 0.49
Certificates of deposit 3,871,262 24,049 2.48
Mortgagors' escrow 141,046 67 0.19
------------ ---------- ----------
Total interest-bearing deposits 10,440,313 47,477 1.82
Borrowed funds 10,380,575 94,521 3.64
------------ ---------- ----------
Total interest-bearing liabilities 20,820,888 141,998 2.73
Non-interest-bearing deposits 736,350
Other liabilities 303,490
------------
Total liabilities 21,860,728
Stockholders' equity 3,210,938
------------
Total liabilities and stockholders'
equity $25,071,666
============
Net interest income/interest rate
spread $149,131 2.59%
========== ==========
Net interest-earning assets/net
interest margin $1,067,696 2.73%
============ ==========
Ratio of interest-earning assets to
interest-bearing liabilities 1.05x
==========
Core deposits $7,164,355 $23,361 1.30%
============ ========== ==========
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
Other 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%
============ ========== ==========
NEW YORK COMMUNITY BANCORP, INC.
NET INTEREST INCOME ANALYSIS
(dollars in thousands)
(unaudited)
Three Months Ended June 30,
----------------------------------
2005
----------------------------------
Average
Average Yield/
Balance Interest Cost
------------ ---------- ----------
Assets:
Interest-earning assets:
Mortgage and other loans, net $15,159,345 $207,826 5.48%
Mortgage-related securities 4,565,084 51,139 4.48
Other securities 2,138,316 32,027 5.99
Money market investments 25,839 137 2.12
------------ ---------- ----------
Total interest-earning assets 21,888,584 291,129 5.32
Non-interest-earning assets 3,183,082
------------
Total assets $25,071,666
============
Liabilities and Stockholders'
Equity:
Interest-bearing deposits:
NOW and money market accounts $ 3,716,640 $ 20,015 2.15%
Savings accounts 2,711,365 3,346 0.49
Certificates of deposit 3,871,262 24,049 2.48
Mortgagors' escrow 141,046 67 0.19
------------ ---------- ----------
Total interest-bearing deposits 10,440,313 47,477 1.82
Borrowed funds 10,380,575 94,521 3.64
------------ ---------- ----------
Total interest-bearing liabilities 20,820,888 141,998 2.73
Non-interest-bearing deposits 736,350
Other liabilities 303,490
------------
Total liabilities 21,860,728
Stockholders' equity 3,210,938
------------
Total liabilities and stockholders'
equity $25,071,666
============
Net interest income/interest rate
spread $149,131 2.59%
========== ==========
Net interest-earning assets/net
interest margin $1,067,696 2.73%
============ ==========
Ratio of interest-earning assets to
interest-bearing liabilities 1.05x
==========
Core deposits $7,164,355 $23,361 1.30%
============ ========== ==========
Three Months Ended June 30,
----------------------------------
2004
----------------------------------
Average
Average Yield/
Balance Interest Cost
------------ ---------- ----------
Assets:
Interest-earning assets:
Mortgage and other loans, net $11,247,740 $160,822 5.72%
Mortgage-related securities 10,528,652 132,533 5.04
Other securities 2,799,591 35,782 5.11
Money market investments 21,076 63 1.20
------------ ---------- ----------
Total interest-earning assets 24,597,059 329,200 5.35
Non-interest-earning assets 3,230,425
------------
Total assets $27,827,484
============
Liabilities and Stockholders'
Equity:
Interest-bearing deposits:
NOW and money market accounts $ 2,496,536 $ 5,355 0.86%
Savings accounts 2,860,141 3,434 0.48
Certificates of deposit 3,807,475 10,446 1.10
Mortgagors' escrow 107,324 71 0.26
------------ ---------- ----------
Total interest-bearing deposits 9,271,476 19,306 0.83
Borrowed funds 14,421,005 74,667 2.07
------------ ---------- ----------
Total interest-bearing liabilities 23,692,481 93,973 1.59
Non-interest-bearing deposits 742,416
Other liabilities 270,167
------------
Total liabilities 24,705,064
Stockholders' equity 3,122,420
------------
Total liabilities and stockholders'
equity $27,827,484
============
Net interest income/interest rate
spread $235,227 3.76%
========== ==========
Net interest-earning assets/net
interest margin $904,578 3.83%
============ ==========
Ratio of interest-earning assets to
interest-bearing liabilities 1.04x
==========
Core deposits $6,099,093 $8,789 0.58%
============ ========== ==========
NEW YORK COMMUNITY BANCORP, INC.
NET INTEREST INCOME ANALYSIS
(dollars in thousands)
(unaudited)
Six Months Ended June 30,
----------------------------------
2005
----------------------------------
Average
Average Yield/
Balance Interest Cost
------------ ---------- ----------
Assets:
Interest-earning assets:
Mortgage and other loans, net $14,458,777 $396,118 5.48%
Mortgage-related securities 4,764,139 111,136 4.67
Other securities 2,170,805 65,928 6.07
Money market investments 28,559 341 2.39
------------ ---------- ----------
Total interest-earning assets 21,422,280 573,523 5.35
Non-interest-earning assets 3,241,891
------------
Total assets $24,664,171
============
Liabilities and Stockholders'
Equity:
Interest-bearing deposits:
NOW and money market accounts $ 3,361,829 $ 32,406 1.93%
Savings accounts 2,816,014 7,349 0.52
Certificates of deposit 3,804,958 44,137 2.32
Mortgagors' escrow 115,531 133 0.23
------------ ---------- ----------
Total interest-bearing deposits 10,098,332 84,025 1.66
Borrowed funds 10,341,589 181,611 3.51
------------ ---------- ----------
Total interest-bearing liabilities 20,439,921 265,636 2.60
Non-interest-bearing deposits 732,459
Other liabilities 301,814
------------
Total liabilities 21,474,194
Stockholders' equity 3,189,977
------------
Total liabilities and stockholders'
equity $24,664,171
============
Net interest income/interest rate
spread $307,887 2.75%
========== ==========
Net interest-earning assets/net
interest margin $982,359 2.87%
============ ==========
Ratio of interest-earning assets to
interest-bearing liabilities 1.05x
==========
Core deposits $6,910,302 $39,755 1.15%
============ ========== ==========
Six Months Ended June 30,
----------------------------------
2004
----------------------------------
Average
Average Yield/
Balance Interest Cost
------------ ---------- ----------
Assets:
Interest-earning assets:
Mortgage and other loans, net $10,848,670 $317,021 5.84%
Mortgage-related securities 9,425,440 237,917 5.05
Other securities 2,495,021 69,813 5.60
Money market investments 42,530 297 1.40
------------ ---------- ----------
Total interest-earning assets 22,811,661 625,048 5.48
Non-interest-earning assets 3,379,998
------------
Total assets $26,191,659
============
Liabilities and Stockholders'
Equity:
Interest-bearing deposits:
NOW and money market accounts $ 2,441,019 $ 12,219 1.00%
Savings accounts 2,863,473 7,531 0.53
Certificates of deposit 3,951,307 17,714 0.90
Mortgagors' escrow 84,645 115 0.27
------------ ---------- ----------
Total interest-bearing deposits 9,340,444 37,579 0.80
Borrowed funds 12,719,302 138,726 2.18
------------ ---------- ----------
Total interest-bearing liabilities 22,059,746 176,305 1.60
Non-interest-bearing deposits 689,859
Other liabilities 222,528
------------
Total liabilities 22,972,133
Stockholders' equity 3,219,526
------------
Total liabilities and stockholders'
equity $26,191,659
============
Net interest income/interest rate
spread $448,743 3.88%
========== ==========
Net interest-earning assets/net
interest margin $751,915 3.93%
============ ==========
Ratio of interest-earning assets to
interest-bearing liabilities 1.03x
==========
Core deposits $5,994,351 $19,750 0.66%
============ ========== ==========
NEW YORK COMMUNITY BANCORP, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(in thousands, except share and per share data)
(unaudited)
For the Three Months Ended
--------------------------------------
June 30, March 31, June 30,
2005 2005 2004
------------ ------------ ------------
GAAP EARNINGS DATA:
Net income $86,472 $91,082 $42,755
Basic earnings per share 0.33 0.35 0.16
Diluted earnings per share 0.33 0.35 0.16
Return on average assets 1.38% 1.50% 0.61%
Return on average tangible
assets 1.53 1.67 0.69
Return on average stockholders'
equity 10.77 11.50 5.48
Return on average tangible
stockholders' equity 29.66 32.82 16.41
Efficiency ratio 27.55 26.54 43.82
Operating expenses to average
assets 0.79 0.84 0.69
Interest rate spread 2.59 2.92 3.76
Net interest margin 2.73 3.03 3.83
Shares used for basic EPS
computation 260,203,948 259,872,413 259,949,465
Shares used for diluted EPS
computation 262,349,662 262,274,300 267,700,667
EARNINGS DATA EXCLUDING
2Q 2004 REPOSITIONING
CHARGE (1) :
Net income $86,472 $91,082 $137,634
Basic earnings per share 0.33 0.35 0.53
Diluted earnings per share 0.33 0.35 0.51
Return on average assets 1.38% 1.50% 1.98%
Return on average tangible
assets 1.53 1.67 2.16
Return on average stockholders'
equity 10.77 11.50 17.63
Return on average tangible
stockholders' equity 29.66 32.82 51.42
Efficiency ratio (2) 27.55 26.54 17.94
For the Six Months Ended
-------------------------
June 30, June 30,
2005 2004
------------ ------------
GAAP EARNINGS DATA:
Net income $177,554 $172,778
Basic earnings per share 0.68 0.66
Diluted earnings per share 0.68 0.64
Return on average assets 1.44% 1.32%
Return on average tangible assets 1.60 1.46
Return on average stockholders' equity 11.13 10.73
Return on average tangible stockholders'
equity 31.20 29.72
Efficiency ratio 27.03 26.31
Operating expenses to average assets 0.81 0.72
Interest rate spread 2.75 3.88
Net interest margin 2.87 3.93
Shares used for basic EPS computation 260,039,096 260,307,258
Shares used for diluted EPS computation 262,287,845 270,616,820
EARNINGS DATA EXCLUDING 2Q 2004
REPOSITIONING CHARGE (1) :
Net income $177,554 $267,657
Basic earnings per share 0.68 1.03
Diluted earnings per share 0.68 0.99
Return on average assets 1.44% 2.04%
Return on average tangible assets 1.60 2.24
Return on average stockholders' equity 11.13 16.63
Return on average tangible stockholders'
equity 31.20 45.72
Efficiency ratio (2) 27.03 18.31
At June 30, At December 31,
2005 2004
--------------- ---------------
BALANCE SHEET DATA:
Book value per share $12.44 $12.23
Tangible book value per share 4.71 4.40
Stockholders' equity to total assets 12.90% 13.26%
Tangible stockholders' equity to
tangible assets 5.31 5.22
Tangible stockholders' equity to
tangible assets excluding net
unrealized losses on securities 5.44 5.39
Shares used for book value computation 261,225,054 260,533,784
Total shares issued and outstanding 265,681,667 265,190,635
ASSET QUALITY RATIOS:
Non-performing loans to total loans 0.27% 0.21%
Non-performing assets to total assets 0.17 0.12
Allowance for loan losses to
non-performing loans 184.22 277.31
Allowance for loan losses to total loans 0.50 0.58
(1) Amounts for the three and six months ended June 30, 2004 exclude
the impact of a $94.9 million, or $0.35 per diluted share, after-
tax loss on the sale of securities relating to the repositioning
of the balance sheet (the "repositioning charge").
(2) Ratios for the three and six months ended June 30, 2004 exclude a
$157.2 million net loss on the sale of securities relating to the
balance sheet repositioning.
CONTACT: New York Community Bancorp, Inc.
Ilene A. Angarola, 516-683-4420
First Senior Vice President
Investor Relations