Exhibit 99.2
New York Community Bancorp, Inc.
Reports 3rd Quarter 2006 Diluted Cash EPS
of $0.24 & Diluted GAAP EPS of $0.21(1)
Board of Directors Declares $0.25 Per Share Quarterly Cash
Dividend
WESTBURY, N.Y.--(BUSINESS WIRE)--Oct. 25, 2006--3rd Quarter 2006
Highlights
-- The average yield on loans rose to 5.94% in the current third
quarter from 5.85% and 5.79%, respectively, in the trailing
and year-earlier three months.
-- Loans outstanding totaled $19.8 billion and represented 68.3%
of total assets at quarter-end.
-- Originations totaled $1.1 billion during the quarter, with
mortgage loans accounting for $861.4 million, or 77.6%.
-- Non-performing loans represented 0.16% of total loans at the
close of the quarter, consistent with the measures at 6/30/06
and 12/31/05.
-- Securities declined to $5.2 billion and represented 18.0% of
total assets at quarter-end.
-- Tangible stockholders' equity equaled 5.63% of tangible assets
at quarter-end, excluding after-tax mark-to-market
adjustments; including these adjustments, the ratio was 5.43%.
(2)
New York Community Bancorp, Inc. (NYSE: NYB) today reported GAAP
earnings of $62.5 million, or $0.21 per diluted share, and cash
earnings of $69.7 million, or $0.24 per diluted share, for the three
months ended September 30, 2006. The Company's third quarter 2006 cash
earnings thus contributed $7.2 million, or 11.5%, more to tangible
stockholders' equity than its GAAP earnings alone. (1)(2)
For the nine months ended September 30, 2006, the Company reported
GAAP earnings of $179.5 million, or $0.63 per diluted share,
reflecting the impact of an $18.8 million, or $0.07 per diluted share,
post-merger repositioning charge recorded in the second quarter in
connection with the sale of securities following the Company's
acquisition of Atlantic Bank of New York ("Atlantic Bank") on April
28, 2006. Excluding this charge, and a $3.6 million after-tax
mark-to-market loss on interest rate swaps recorded in the year's
first quarter, the Company reported operating earnings of $201.9
million, or $0.71 per diluted share, and cash earnings of $221.3
million, or $0.78 per diluted share, for the nine months ended
September 30, 2006. (1)(3)
For the three and nine months ended September 30, 2005, the
Company reported GAAP earnings of $77.6 million and $255.2 million,
equivalent to $0.30 and $0.97 per diluted share, respectively.
Commenting on the Company's third-quarter performance, President
and Chief Executive Officer Joseph R. Ficalora stated, "While the
inversion of the yield curve continues to pressure our earnings, we
believe that the magnitude of its impact has been tempered by the
actions we have taken to reposition our balance sheet in the past two
years. Most recently, the additions of Long Island Financial and
Atlantic Bank have enabled us to diversify our mix of assets and
deposits, and have supported our net interest margin in a difficult
rate environment. While the average cost of our funds has increased,
so too has the average yield on our assets, thus limiting the
compression of our margin over the last three months.
"The challenge we face is two-fold," Mr. Ficalora continued. "In
addition to the pressure placed on our margin by the inversion of the
yield curve, the erratic movement of market interest rates has
inhibited loan refinancing and thus reduced the volume of prepayment
penalties we've received. In the last three months, prepayment
penalties totaled a modest $5.3 million, well below historical levels
and, given the size of our loan portfolio, the level one might expect.
At 2.24%, our current third-quarter margin reflects the classification
of all prepayment penalties as interest income, which added six basis
points to the current margin and seven and 21 basis points,
respectively, to the margins now reported for the trailing and
year-earlier three months. The classification of all, rather than
some, prepayment penalties as interest income is consistent with
current industry practice and should benefit our margin prospectively.
"In the meantime, we are currently in the process of taking
certain actions that we believe will ultimately foster revenue growth.
With the integration of our commercial bank data processing systems
set for mid-November, for example, our ability to serve our customers
will be substantially enhanced. The integration will facilitate the
marketing of our commercial bank franchise, and enable us to step up
our efforts to cross-sell our products and services to the broader
customer base of our much larger community bank.
Board of Directors Declares $0.25 Per Share Quarterly Cash
Dividend
"Notwithstanding the challenges posed by the inversion of the
yield curve, we've maintained our tangible capital at a solid level
while, at the same time, maintaining our quarterly cash dividend at
$0.25 per share. Reflecting the strength of our balance sheet and our
capital position, the Board of Directors last night reiterated its
commitment to maintaining the dividend at this level, declaring a
$0.25 per share dividend payable on November 15, 2006 to shareholders
of record at the close of business on November 3rd," Mr. Ficalora
said.
Balance Sheet Summary
The Company had total assets of $28.9 billion at September 30,
2006, a $195.5 million increase from the June 30, 2006 balance and a
$2.6 billion, or 10.0%, increase from the balance recorded at December
31, 2005.
Loans
Loans accounted for $19.8 billion, or 68.3%, of total assets at
the end of September, up $309.5 million from the trailing quarter-end
balance and $2.7 billion, or 16.0%, from the balance recorded at
December 31, 2005. The year-to-date growth of the loan portfolio
reflects nine-month originations totaling $4.0 billion, including $1.1
billion in the third quarter, as well as the $1.2 billion of loans
acquired in the Company's acquisition of Atlantic Bank. Loan growth
was tempered by year-to-date repayments of $2.4 billion, including
third-quarter repayments of $799.7 million.
Multi-family loans totaled $14.7 billion at September 30, 2006 and
represented 74.4% of loans outstanding, as compared to $12.9 billion,
or 75.5% of total loans, at year-end 2005. In addition to the $440.7
million of multi-family loans acquired in the Atlantic Bank
transaction, the 14.4% increase was driven by year-to-date
originations totaling $2.4 billion, including third-quarter
originations of $541.5 million. At September 30, 2006, the average
principal balance of a multi-family loan was $3.6 million. The
portfolio had an average loan-to-value ratio of 63.7% and an expected
weighted average life of 3.8 years at that date.
Commercial real estate loans totaled $3.0 billion at September 30,
2006 and represented 15.2% of loans outstanding, as compared to $2.9
billion, or 17.0% of total loans, at year-end 2005. In addition to the
$237.4 million of loans acquired in the Atlantic Bank transaction, the
increase reflects nine-month originations of $261.4 million, including
$48.1 million in the third quarter of the year. At September 30, 2006,
the average principal balance of a commercial real estate loan was
$2.2 million. The portfolio had an average loan-to-value ratio of
56.3% and an expected weighted average life of 3.7 years at that date.
Construction loans totaled $1.2 billion and represented 6.0% of
loans outstanding at the end of September, an increase from $854.2
million, representing 5.0% of total loans, at year-end 2005. The
growth of the portfolio was largely due to organic loan production,
with nine-month originations totaling $830.2 million, including $262.4
million in the third quarter of the year. Construction loans
represented 20.8% of total loans produced in the current nine-month
period, as compared to 10.7% in the year-earlier nine months.
Other loans rose $446.5 million over the current nine-month
period, and totaled $621.6 million at September 30, 2006. The increase
reflects the $436.8 million of loans acquired in the Atlantic Bank
transaction and year-to-date originations of $452.9 million, including
third-quarter originations of $248.0 million. Business loans accounted
for $585.5 million of total other loans at the close of the third
quarter, and for $244.8 million and $444.3 million of other loans
produced in the three- and nine-month periods, respectively.
At the present time, the Company has a pipeline of approximately
$618 million, including approximately $393 million of multi-family
loans. The level of the pipeline is a function of various factors,
including the current rate environment, which has limited loan
refinancing activity in recent quarters, and competition for product,
which has increased.
Asset Quality
The Company extended its record of asset quality in the current
third quarter, with non-performing loans representing 0.16% of total
loans at the end of September, unchanged from the ratios recorded at
June 30, 2006 and December 31, 2005. Non-performing loans totaled
$32.2 million at the close of the current third quarter, as compared
to $30.4 million and $27.6 million, respectively, at the earlier
dates.
With other real estate owned holding steady at $1.3 million,
non-performing assets totaled $33.5 million, $31.7 million, and $28.9
million, and represented 0.12%, 0.11%, and 0.11% of total assets, at
September 30, 2006, June 30, 2006, and December 31, 2005,
respectively.
The allowance for loan losses totaled $85.5 million at the close
of the current third quarter, as compared to $79.7 million at year-end
2005. The increase reflects the addition of a $6.1 million loan loss
allowance in connection with the Atlantic Bank acquisition, which was
partly offset by nine-month charge-offs of $279,000, including
$126,000 in the third quarter of the year. At September 30, 2006 and
December 31, 2005, the allowance for loan losses represented 265.98%
and 289.17%, respectively, of non-performing loans and 0.43% and
0.47%, respectively, of total loans. The Company recorded no provision
for loan losses during the current or year-earlier nine-month period.
Securities
The securities portfolio accounted for $5.2 billion, or 18.0%, of
total assets at the end of September, as compared to $5.3 billion,
representing 18.5% of total assets, at the close of the second quarter
and $5.6 billion, representing 21.4% of total assets, at December 31,
2005. Included in the September 30, 2006 amount were
available-for-sale securities of $2.1 billion, representing 41.0% of
the total, and held-to-maturity securities of $3.1 billion,
representing the remaining 59.0%. Available-for-sale securities were
down $241.9 million, or 10.2%, from the year-end 2005 balance, while
the balance of held-to-maturity securities was down $186.7 million, or
5.7%, during this time.
Mortgage-related securities represented $1.7 billion of
available-for-sale securities at the end of September, down from $2.0
billion at December 31, 2005. Debt and equity securities accounted for
the remaining $410.7 million and $411.4 million of available-for-sale
securities at the corresponding dates. The composition of the
held-to-maturity securities portfolio was more evenly divided, with
mortgage-related securities and other securities accounting for $1.4
billion and $1.6 billion, respectively, of the September 30, 2006
balance and for $1.6 billion and $1.7 billion, respectively, at
December 31, 2005.
Sources of Funds
In the third quarter of 2006, the Company funded the growth of its
loan portfolio through four primary sources: cash flows generated
through the repayment of loans; an increase in deposits; the use of
wholesale borrowings; and cash flows generated through the reduction
of the securities portfolio.
Deposits totaled $13.8 billion at the end of September, up $137.7
million from the balance recorded at the close of the second quarter
and $1.6 billion, or 13.6%, from the balance recorded at December 31,
2005. The nine-month increase primarily reflects deposits acquired in
the transaction with Atlantic Bank.
Core deposits (defined as NOW and money market accounts, savings
accounts, and non-interest-bearing deposits) accounted for $254.8
million of the nine-month increase in total deposits, and amounted to
$7.1 billion at September 30, 2006. The growth in core deposits was
the net effect of a $323.8 million rise in non-interest-bearing
accounts to $1.2 billion, a $47.5 million rise in savings accounts to
$2.5 billion, and a $116.5 million reduction in NOW and money market
accounts to $3.5 billion. While the balance of NOW and money market
accounts was boosted by the Atlantic Bank transaction, the increase
was partially offset by a strategic reduction in brokered deposits in
the second quarter of the year.
Certificates of deposit ("CDs") accounted for $1.4 billion of the
increase in total deposits over the nine-month period, and amounted to
$6.6 billion at September 30, 2006.
The balance of wholesale borrowings totaled $10.3 billion at the
end of September, comparable to the June 30, 2006 balance, but up
$566.5 million from the balance recorded at December 31, 2005. In the
first quarter of 2006, the Company had increased its use of wholesale
borrowings in anticipation of completing the Atlantic Bank
transaction; following the transaction, the Company utilized the cash
flows from securities sales and repayments to prepay $886.1 million of
wholesale borrowings. The balance of wholesale borrowings at September
30, 2006 represented 35.6% of total assets, an improvement from 35.7%
and 37.0% at June 30, 2006 and December 31, 2005, respectively. During
the first six months of 2006, the Company extended the maturity of
wholesale borrowings totaling $1.2 billion to reduce its funding
costs.
Stockholders' Equity
The Company recorded total stockholders' equity of $3.7 billion at
September 30, 2006, up $14.8 million from the June 30, 2006 balance
and $387.1 million, or 11.6%, from the balance recorded at December
31, 2005. The September 30, 2006 amount was equivalent to 12.83% of
total assets and a book value of $12.66 per share, based on
293,217,441 shares.
Tangible stockholders' equity, which is calculated by subtracting
goodwill and core deposit intangibles ("CDI") from total stockholders'
equity, equaled $1.4 billion at the end of September, up $17.8 million
from the June 30, 2006 balance and $191.0 million, or 15.2%, from the
balance recorded at year-end 2005. The Company's tangible
stockholders' equity equaled 5.63% of tangible assets at the close of
the current third quarter, excluding after-tax mark-to-market
adjustments on securities, representing a nine-month increase of 22
basis points. Including after-tax mark-to-market adjustments on
securities, the third quarter- and year-end measures were 5.43% and
5.19%, respectively.(2)
At September 30, 2006, the Company's capital ratios continued to
exceed the minimum federal requirements for a bank holding company. In
addition, the capital ratios for the Company's primary subsidiaries,
New York Community Bank and New York Commercial Bank, continued to
exceed the minimum levels required for classification as a "well
capitalized" institution under the FDIC Improvement Act. For example,
the Community Bank had a leverage capital ratio of 8.13% at
quarter-end.
Earnings Summary for the Three Months Ended September 30, 2006
In the third quarter of 2006, consistent with current industry
practice, the Company classified all prepayment penalties as interest
income, rather than splitting such penalties between interest income
and fee income as in the past.
The following table reflects the impact of classifying all
prepayment penalties as interest income on the Company's net interest
income, non-interest income, and net interest margin in the three
months ended September 30, 2006, June 30, 2006, and September 30,
2005:
(dollars in thousands)
Reclassification of Prepayment Penalties
----------------------------------------------------
Net Interest Income Non-interest Income
----------------------------------------------------
3Q 2006 2Q 2006 3Q 2005 3Q 2006 2Q 2006 3Q 2005
----------------------------------------------------
Pre-
reclassification $135,971 $139,428 $135,440 $27,343 $28,247 $33,062
Post-
reclassification 139,847 144,016 146,825 23,467 23,659 21,677
====================================================
Reclassification of Prepayment Penalties
----------------------------------------------------
Net Interest Margin
----------------------------------------------------
3Q 2006 2Q 2006 3Q 2005
----------------------------------------------------
Pre-
reclassification 2.18% 2.22% 2.52%
Post-
reclassification 2.24 2.29 2.73
====================================================
Net Interest Income
The Company recorded third quarter 2006 net interest income of
$139.8 million, down $4.2 million on a linked-quarter basis and $7.0
million year-over-year. The linked-quarter decline was the net effect
of a $9.2 million rise in interest income to $361.3 million and a
$13.3 million rise in interest expense to $221.5 million. The
year-over-year decline was the net effect of a $62.0 million rise in
interest income and a $69.0 million rise in interest expense. While
interest income rose on a linked-quarter and year-over-year basis, its
level was impacted by the amount of prepayment penalties received. In
the third quarter of 2006, the contribution of prepayment penalties to
interest income totaled $5.3 million, consistent with the level
recorded in the trailing quarter, but down $7.9 million from the level
recorded in the year-earlier three months.
The level of net interest income was also impacted by the
inversion of the yield curve, a function of the growing disparity
between short- and intermediate-term interest rates. While the Fed
funds rate was maintained at 5.25% over the course of the quarter, the
five-year Constant Maturity Treasury rate fell 51 basis points to
4.59% during this time. The inversion of the yield curve also placed
significant pressure on the Company's net interest margin, which
equaled 2.24% in the current third quarter, as compared to 2.29% and
2.73% in the second quarter of 2006 and the third quarter of 2005,
respectively. The impact of the yield curve was tempered by the
full-quarter benefit of the Company's commercial bank acquisitions,
which provided an attractive mix of lower-cost core deposits and
facilitated the prepayment of higher-cost borrowings in the second
quarter of the year.
Linked-quarter Comparison
The linked-quarter increase in interest income was driven by an
$81.3 million rise in average interest-earning assets to $25.2
billion, together with a 12-basis point increase in the average yield
to 5.74%. These increases were largely attributable to the
full-quarter benefit of the Atlantic Bank transaction and the organic
growth of the loan portfolio.
Average loans rose $488.0 million to $19.4 billion over the course
of the quarter, while the average yield on such assets rose nine basis
points to 5.94%. As a result, the interest income produced by loans
rose $11.8 million to $288.8 million in the current third quarter from
the level recorded in the second quarter of the year.
The increase in interest income produced by loans was partly
offset by a decline in the interest income produced by securities,
which fell $2.5 million to $72.1 million over the three-month period.
The linked-quarter decline was the net effect of a $392.0 million
reduction in the average balance to $5.7 billion and a 16-basis point
rise in the average yield to 5.05%.
The linked-quarter rise in interest expense was attributable to a
$78.7 million increase in the average balance of interest-bearing
liabilities to $23.5 billion, together with an 18-basis point increase
in the average cost of funds to 3.74%. While the Fed funds rate did
not increase over the course of the quarter, the average balance of
higher-cost CDs rose substantially. The average balance of CDs rose
$549.3 million to $6.4 billion in the current third quarter, while the
average cost of such funds rose 27 basis points to 4.34%. As a result,
the interest expense produced by CDs rose $10.7 million to $70.1
million from the level recorded in the trailing three-month period.
The growth in CDs was partly offset by a $21.6 million decline in
the average balance of borrowed funds to $11.0 billion, which was
coupled with a five-basis point rise in the average cost to 4.18%. The
net effect of the higher cost and the lower balance was a $2.2 million
rise in interest expense on borrowed funds to $115.6 million over the
three-month period.
The average balance of core deposits meanwhile declined $411.8
million to $7.2 billion, tempering the impact of an 11-basis point
rise in the average cost of such funds to 1.96%. The net effect was a
$428,000 rise in the interest expense produced by core deposits to
$35.7 million in the third quarter of 2006.
Year-Over-Year Comparison
The year-over-year increase in interest income was driven by a
$3.3 billion rise in the average balance of interest-earning assets
together with a 26-basis point rise in the average yield. The growth
of the average balance was largely fueled by organic loan production
and by the loans acquired in the transactions with Long Island
Financial Corp. ("Long Island Financial") and Atlantic Bank. The
higher yield was primarily due to the rise in market interest rates
over the nine-month period, and to the higher yields provided by the
growing loan portfolio.
The interest income produced by loans rose $62.2 million
year-over-year, fueled by a $3.8 billion increase in the average
balance and a 15-basis point increase in the average yield. During
this time, the interest income produced by securities fell $296,000,
the net effect of a $461.7 million decline in the average balance and
a 36-basis point rise in the average yield.
The year-over-year increase in interest expense was driven by a
$2.7 billion rise in the average balance of interest-bearing
liabilities and an 85-basis point rise in the average cost of funds.
In addition to the 150-basis point rise in the Fed funds rate over the
past four quarters, the year-over-year rise in interest expense was
largely due to an increase in term deposits and to an increase in the
Company's use of borrowed funds. The interest expense produced by CDs
rose $38.9 million from the year-earlier level, the result of a $2.0
billion increase in the average balance and a 150-basis point increase
in the average cost. During this time, the interest expense produced
by borrowed funds rose $19.6 million, the result of a $901.9 million
increase in the average balance and a 44-basis point increase in the
average cost.
The year-over-year increase in interest expense was also fueled by
a $10.5 million rise in the interest expense produced by core
deposits, the result of a $264.5 million increase in the average
balance and a 53-basis point rise in the average cost of such funds.
The higher average balance largely reflects the core deposits acquired
in the Company's commercial bank acquisitions, while the higher
average cost reflects the steady rise in short-term interest rates.
Non-interest Income
Reflecting the reclassification of prepayment penalties as
interest income, the Company recorded non-interest income of $23.5
million in the current third quarter, as compared to $23.7 million and
$21.7 million, respectively, in the trailing and year-earlier three
months.
The year-over-year improvement in non-interest income was driven
by a $2.0 million rise in fee income to $10.4 million, which more than
offset a $170,000 reduction in other income to $13.0 million. The
linked-quarter decline in non-interest income was the net effect of a
$669,000 rise in fee income and an $861,000 reduction in other income.
The linked-quarter and year-over-year improvements in fee income
reflect the benefit of the Long Island Financial and Atlantic Bank
acquisitions, which resulted in an increase in deposit accounts.
While the linked-quarter decline in other income was attributable
to a reduction in revenues from various sources, the year-over-year
decline largely reflects a gain of $824,000 on the sale of certain
assets that was recorded in the third quarter of 2005. Absent this
gain, the level of other income recorded in the current third quarter
would have exceeded the year-earlier level by $654,000, primarily
reflecting an increase in the revenues from the Company's investment
in Bank-owned Life Insurance and its 100% equity interest in Peter B.
Cannell & Co., Inc., an investment advisory firm.
Non-interest Expense
Reflecting the full-quarter impact of the Long Island Financial
and Atlantic Bank transactions, the Company recorded non-interest
expense of $71.5 million in the current third quarter, as compared to
$53.2 million in the third quarter of 2005. Operating expenses
accounted for $16.2 million of the $18.3 million increase, with the
amortization of CDI accounting for the remaining $2.1 million.
Operating expenses rose to $66.4 million from $50.2 million over
the past four quarters, primarily reflecting the addition of 29
branches in the Long Island Financial and Atlantic Bank transactions
and the related expansion of the Company's branch and back-office
staff. Compensation and benefits expense accounted for the bulk of the
year-over-year increase in operating expenses, rising $8.4 million to
$34.5 million, while occupancy and equipment expense rose $5.0 million
year-over-year to $15.9 million. To a lesser extent, the rise in
operating expenses was also attributable to a $1.9 million increase in
general and administrative ("G&A") expense to $14.1 million and an
$831,000 increase in other operating expenses to $2.0 million.
In the second quarter of 2006, the Company's non-interest expense
was boosted by a post-merger repositioning charge of $27.6 million,
including $26.5 million for the prepayment of certain wholesale
borrowings and $1.1 million for the termination of its interest rate
swap agreements. On an after-tax basis, the charges were equivalent to
$18.0 million and $760,000, respectively. Also included in second
quarter non-interest expense were operating expenses of $61.1 million
and CDI amortization of $4.5 million. The latter amounts reflect the
two-month impact of the Atlantic Bank transaction, and were $5.3
million and $582,000, respectively, below the third-quarter 2006
levels, which reflected three months of combined operations with
Atlantic Bank. The linked-quarter increase in operating expenses was
primarily due to a $2.0 million rise in compensation and benefits
expense, a $1.9 million rise in occupancy and equipment expense, and a
$939,000 rise in G&A expense.
Income Tax Expense
The Company recorded income tax expense of $29.4 million in the
current third quarter, up $5.5 million on a linked-quarter basis but
down $8.4 million from the level recorded in the third quarter of
2005. In the second quarter of 2006, the level of pre-tax income was
reduced by the post-merger repositioning charge recorded in connection
with the Atlantic Bank transaction; as a result, the level of income
tax expense was lower in the trailing quarter than it was in the
current three-month period. The year-over-year reduction in income tax
expense was the result of a $23.5 million decline in pre-tax income to
$91.8 million and a decline in the effective tax rate to 32.0% from
32.7%.
New York Community Bancorp, Inc. is the $28.9 billion holding
company for New York Community Bank and New York Commercial Bank, and
the leading producer of multi-family loans for portfolio in New York
City. A New York State-chartered savings bank with 137 offices serving
New York City, Long Island, Westchester County, and northern New
Jersey, New York Community Bank is the third largest thrift depository
in the New York metropolitan region, and operates through seven local
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. New York Commercial Bank has
29 branches serving Manhattan, Queens, Brooklyn, Westchester County,
and Long Island, including 17 branches of Atlantic Bank. Additional
information about New York Community Bancorp, Inc. and its bank
subsidiaries is available at www.myNYCB.com.
Post-Earnings Conference Call
The Company will host a conference call on October 25, 2006 at
9:30 a.m. (ET) to discuss its third quarter 2006 performance. The
conference call may be accessed by dialing 800-946-0742 (for domestic
calls) or 719-457-2650 (for international calls) and providing the
following access code: 1904133. A replay of the conference call will
be available approximately two hours following completion of the call
through midnight on November 3rd, 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 web cast, 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 through 5:00 p.m. on November 6, 2006.
Forward-looking Statements and Associated Risk Factors
This release, like other written and oral communications presented
by the Company and our authorized officers, may contain certain
forward-looking statements regarding our 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. We intend 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
are including this statement for purposes of said safe harbor
provisions.
Forward-looking statements, which are based on certain assumptions
and describe our future plans, strategies, and expectations, 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. Our ability to
predict results or the actual effects of our 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 our forward-looking
statements. These factors include, but are not limited to, general
economic conditions and trends, either nationally or locally in some
or all of the areas in which we and our customers conduct our
respective businesses; conditions in the securities markets or the
banking industry; changes in interest rates, which may affect our net
income, the level of prepayment penalties, and other future cash
flows, or the market value of our assets; changes in deposit flows,
and in the demand for deposit, loan, and investment products and other
financial services in the markets we serve; changes in the financial
or operating performance of our customers' businesses; changes in real
estate values, which could impact the quality of the assets securing
the loans in our portfolio; changes in the quality or composition of
our loan or investment portfolios; changes in competitive pressures
among financial institutions or from non-financial institutions;
changes in our customer base; our 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;
potential exposure to unknown or contingent liabilities of companies
targeted for acquisition; our ability to retain key members of
management; our timely development of new lines of business and
competitive products or services within existing lines of business in
a changing environment, and the acceptance of such products or
services by our customers; any interruption or breach of security
resulting in failures or disruptions in customer account management,
general ledger, deposit, loan, or other systems; the outcome of
pending or threatened litigation, or of other matters before
regulatory agencies, or of matters resulting from regulatory exams,
whether currently existing or commencing in the future; environmental
conditions that exist or may exist on properties owned by, leased by,
or mortgaged to the Company; changes in estimates of future reserve
requirements based upon the periodic review thereof under relevant
regulatory and accounting requirements; changes in banking,
securities, tax, environmental, and insurance laws, regulations, and
policies, and the ability to comply with such changes in a timely
manner; changes in accounting principles, policies, practices, or
guidelines; changes in legislation and regulation; operational issues
stemming from, 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 our operations, pricing, and services.
Additionally, the timing and occurrence or non-occurrence of events
may be subject to circumstances beyond our 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 may be required by applicable law or regulation,
the Company disclaims any obligation to update any forward-looking
statements.
(1) Please see the reconciliation of GAAP and cash earnings and
adjusted cash earnings.
(2) Please see the reconciliation of stockholders' equity and
tangible stockholders' equity.
(3) Please see the reconciliation of GAAP and operating earnings.
- Financial Statements and Highlights Follow -
NEW YORK COMMUNITY BANCORP, INC.
CONSOLIDATED STATEMENTS OF CONDITION
(in thousands, except share data)
September 30,December 31,
2006 2005
-------------------------
(unaudited)
Assets
Cash and cash equivalents $ 269,807 $ 231,803
Securities available for sale:
Mortgage-related securities 1,726,665 1,967,770
Other securities 410,660 411,444
Securities held to maturity:
Mortgage-related securities 1,429,336 1,606,468
Other securities 1,641,991 1,651,570
-------------------------
Total securities 5,208,652 5,637,252
Mortgage loans:
Multi-family 14,703,281 12,857,210
Commercial real estate 3,009,537 2,887,452
Construction 1,179,231 854,161
1-4 family 242,455 254,510
------------- -----------
Total mortgage loans 19,134,504 16,853,333
Other loans 621,568 175,069
-------------------------
Total loans 19,756,072 17,028,402
Less: Allowance for loan losses (85,530) (79,705)
-------------------------
Loans, net 19,670,542 16,948,697
Federal Home Loan Bank of New York stock, at
cost 370,732 330,212
Premises and equipment, net 197,615 140,279
Goodwill 2,151,951 1,980,689
Core deposit intangibles 111,430 86,533
Other assets 943,557 928,240
-------------------------
Total assets $28,924,286 $26,283,705
=========================
Liabilities and Stockholders' Equity
Deposits:
NOW and money market accounts $ 3,460,509 $ 3,576,983
Savings accounts 2,482,440 2,434,990
Certificates of deposit 6,639,156 5,247,029
Non-interest-bearing accounts 1,169,688 845,897
-------------------------
Total deposits 13,751,793 12,104,899
-------------------------
Official checks outstanding 26,891 43,438
Borrowed funds:
Wholesale borrowings 10,283,853 9,717,392
Junior subordinated debentures 456,942 454,197
Other borrowings 354,649 357,069
-------------------------
Total borrowed funds 11,095,444 10,528,658
Mortgagors' escrow 121,519 63,051
Other liabilities 216,629 218,782
-------------------------
Total liabilities 25,212,276 22,958,828
-------------------------
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; 295,117,419 and
273,396,452 shares issued; 295,117,419 and
269,776,791 shares outstanding,
respectively) 2,951 2,734
Paid-in capital in excess of par 3,332,240 3,012,655
Retained earnings (partially restricted) 441,544 475,501
Less: Treasury stock (3,619,661 shares at
December 31, 2005) -- (100,169)
Unallocated common stock held by ESOP (5,986) (6,874)
Common stock held by SERP (3,113) (3,113)
Net unrealized loss on securities available
for sale, net of tax (45,539) (43,359)
Net unrealized loss on securities
transferred to held to maturity, net of
tax (10,087) (12,498)
-------------------------
Total stockholders' equity 3,712,010 3,324,877
-------------------------
Total liabilities and stockholders' equity $28,924,286 $26,283,705
=========================
NEW YORK COMMUNITY BANCORP, INC.
CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share data)
(unaudited)
For the Three Months Ended
---------------------------------------
September 30, June 30, September 30,
2006 2006 2005
-------------- ---------- -------------
Interest Income:
Mortgage and other loans $288,839 $277,057 $226,636
Securities 72,108 74,610 72,404
Money market investments 350 478 217
------------- --------- ------------
Total interest income 361,297 352,145 299,257
------------- --------- ------------
Interest Expense:
NOW and money market
accounts 30,397 30,834 22,087
Savings accounts 5,299 4,434 3,061
Certificates of deposit 70,148 59,475 31,285
Borrowed funds 115,575 113,330 95,939
Mortgagors' escrow 31 56 60
------------- --------- ------------
Total interest expense 221,450 208,129 152,432
------------- --------- ------------
Net interest income 139,847 144,016 146,825
Provision for loan losses -- -- --
------------- --------- ------------
Net interest income after
provision for loan losses 139,847 144,016 146,825
------------- --------- ------------
Non-interest Income:
Fee income 10,437 9,768 8,394
Net securities gains -- -- 83
Loss on mark-to-market of
interest rate swaps -- -- --
Other 13,030 13,891 13,200
------------- --------- ------------
Total non-interest income 23,467 23,659 21,677
------------- --------- ------------
Non-interest Expense:
Operating expenses:
Compensation and benefits 34,478 32,517 26,057
Occupancy and equipment 15,875 13,959 10,886
General and administrative 14,063 13,124 12,116
Other 2,012 1,516 1,181
------------- --------- ------------
Total operating expenses 66,428 61,116 50,240
Post-merger repositioning
charge -- 27,609 --
Amortization of core deposit
intangibles 5,049 4,467 2,930
------------- --------- ------------
Total non-interest expense 71,477 93,192 53,170
------------- --------- ------------
Income before income taxes 91,837 74,483 115,332
Income tax expense 29,360 23,871 37,717
------------- --------- ------------
Net Income $ 62,477 $ 50,612 $ 77,615
============= ========= ============
Basic earnings per share $0.21 $0.18 $0.30
============= ========= ============
Diluted earnings per share $0.21 $0.18 $0.30
============= ========= ============
For the Nine Months Ended
---------------------------
September 30, September 30,
2006 2005
------------- -------------
Interest Income:
Mortgage and other loans $ 821,519 $630,323
Securities 218,564 249,468
Money market investments 994 558
------------- -------------
Total interest income 1,041,077 880,349
------------- -------------
Interest Expense:
NOW and money market accounts 87,580 54,493
Savings accounts 12,391 10,410
Certificates of deposit 178,115 75,422
Borrowed funds 342,089 277,550
Mortgagors' escrow 141 193
------------- -------------
Total interest expense 620,316 418,068
------------- -------------
Net interest income 420,761 462,281
Provision for loan losses -- --
------------- -------------
Net interest income after provision for
loan losses 420,761 462,281
------------- -------------
Non-interest Income:
Fee income 28,531 24,785
Net securities gains 2,823 2,999
Loss on mark-to-market of interest rate
swaps (6,071) --
Other 41,019 48,218
------------- -------------
Total non-interest income 66,302 76,002
------------- -------------
Non-interest Expense:
Operating expenses:
Compensation and benefits 96,536 76,617
Occupancy and equipment 41,894 33,359
General and administrative 39,697 35,223
Other 4,736 4,990
------------- -------------
Total operating expenses 182,863 150,189
Post-merger repositioning charge 27,609 --
Amortization of core deposit intangibles 12,822 8,803
------------- -------------
Total non-interest expense 223,294 158,992
------------- -------------
Income before income taxes 263,769 379,291
Income tax expense 84,305 124,122
------------- -------------
Net Income $ 179,464 $255,169
============= =============
Basic earnings per share $0.64 $0.98
============= =============
Diluted earnings per share $0.63 $0.97
============= =============
NEW YORK COMMUNITY BANCORP, INC.
RECONCILIATION OF GAAP AND OPERATING EARNINGS
Although operating earnings are not a measure of performance
calculated in accordance with GAAP, the Company believes that its
operating earnings are an important indication of its ability to
generate earnings through ongoing operations.
For the three months ended June 30, 2006, the Company calculated
its operating earnings by subtracting from non-interest expense a
pre-tax charge of $26.5 million stemming from the prepayment of
certain wholesale borrowings and a pre-tax charge of $1.1 million
stemming from the termination of its interest rate swap agreements
following the Atlantic Bank acquisition, referred to collectively in
the table below as the "post-merger repositioning charge."
To calculate its operating earnings for the nine months ended
September 30, 2006, the Company subtracted from its non-interest
expense the pre-tax post-merger repositioning charge recorded in the
second quarter, and added back to non-interest income a pre-tax
non-cash loss on the mark-to-market of interest rate swaps that had
been recorded in the first quarter of the year, in the amount of $6.1
million.
Because operating earnings reflect only those income and expense
items that are generally recurring, the Company believes that they are
useful to investors seeking to evaluate its ongoing operating
performance and to compare its performance with other companies in the
banking industry that also report operating earnings. Operating
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 its operating earnings may
differ from that of other companies reporting measures with similar
names.
A reconciliation of the Company's GAAP and operating earnings for
the three months ended June 30, 2006 and the nine months ended
September 30, 2006 follows. As noted, the Company's operating earnings
for the three months ended September 30, 2006 and 2005 and for the
nine months ended September 30, 2005 were the same as its GAAP
earnings for the respective periods.
For the For the
Three Months Ended Nine Months Ended
---------------------------- -------------------
(in thousands, except Sept. 30, June 30, Sept. 30, Sept. 30, Sept. 30,
per share data) 2006 2006 2005 2006 2005
--------- -------- --------- --------- ---------
GAAP Earnings $62,477 $50,612 $77,615 $179,464 $255,169
Adjustments to GAAP
earnings:
Loss on mark-to-
market of interest
rate swaps -- -- -- 6,071 --
Post-merger
repositioning
charge -- 27,609 -- 27,609 --
Income tax effect on
adjustments -- (8,849) -- (11,283) --
--------- -------- --------- --------- ---------
Operating earnings $62,477 $69,372 $77,615 $201,861 $255,169
========= ======== ========= ========= =========
Diluted GAAP Earnings
per Share $0.21 $0.18 $0.30 $0.63 $0.97
Adjustments to
diluted GAAP
earnings per share:
Loss on mark-to-
market of interest
rate swaps -- -- -- 0.01 --
Post-merger
repositioning
charge -- 0.06 -- 0.07 --
--------- -------- --------- --------- ---------
Diluted operating
earnings per share $0.21 $0.24 $0.30 $0.71 $0.97
========= ======== ========= ========= =========
NEW YORK COMMUNITY BANCORP, INC.
RECONCILIATION OF GAAP AND CASH EARNINGS AND ADJUSTED CASH
EARNINGS
While neither cash earnings nor adjusted cash earnings are
measures of performance calculated in accordance with GAAP, the
Company believes that these measures are important because of their
contribution to tangible stockholders' equity.(1)
The Company calculates cash earnings by adding back to GAAP
earnings certain items that have been charged against net income, but
that have been added back to tangible stockholders' equity. Unlike
other expenses incurred by the Company, such capital items represent
contributions to, not reductions of, tangible stockholders' equity.
For this reason, the Company believes that cash earnings are useful to
investors seeking to evaluate its financial performance and to compare
its performance with other companies in the banking industry that also
report cash earnings. For the three months ended June 30, 2006 and the
nine months ended September 30, 2006, the Company also reported
adjusted cash earnings, in order to provide investors with an
indication of its ability to generate cash earnings through ongoing
operations. The Company's adjusted cash earnings were calculated by
excluding from its cash earnings the post-merger repositioning charge
recorded in the three months ended June 30, 2006 and the loss on the
mark-to-market of interest rate swaps recorded in the three months
ended March 31, 2006.
Neither cash earnings nor adjusted cash earnings should 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 its cash earnings and adjusted cash earnings may
differ from that of other companies reporting measures with similar
names.
A reconciliation of the Company's GAAP earnings and cash earnings
for the three months ended September 30, 2006, June 30, 2006, and
September 30, 2005 and for the nine months ended September 30, 2006
and 2005 follows, together with a reconciliation of its cash earnings
and adjusted cash earnings for the three months ended June 30, 2006
and the nine months ended September 30, 2006.
For the For the
Three Months Ended Nine Months Ended
---------------------------- -------------------
(in thousands, except Sept. 30, June 30, Sept. 30, Sept. 30, Sept. 30,
per share data) 2006 2006 2005 2006 2005
--------- -------- --------- --------- ---------
GAAP Earnings $62,477 $50,612 $77,615 $179,464 $255,169
Additional
contributions to
tangible
stockholders' equity:
Amortization and
appreciation of
shares held in ESOP 1,557 1,568 1,775 4,740 5,411
Associated tax
benefits 34 178 346 231 1,737
Dividends on
unallocated ESOP
shares 546 545 1,164 1,637 3,492
Amortization of core
deposit intangibles 5,049 4,467 2,930 12,822 8,803
--------- -------- --------- --------- ---------
Total additional
contributions to
tangible
stockholders' equity 7,186 6,758 6,215 19,430 19,443
--------- -------- --------- --------- ---------
Cash earnings $69,663 $57,370 $83,830 $198,894 $274,612
========= ======== ========= ========= =========
Diluted GAAP Earnings
per Share $0.21 $0.18 $0.30 $0.63 $0.97
Additional
contributions to
diluted cash earnings
per share:
Amortization and
appreciation of
shares held in ESOP 0.01 -- 0.01 0.02 0.02
Associated tax
benefits -- -- -- -- 0.01
Dividends on
unallocated ESOP
shares -- -- -- 0.01 0.01
Amortization of core
deposit intangibles 0.02 0.02 0.01 0.04 0.04
--------- -------- --------- --------- ---------
Total additional
contributions to
diluted cash earnings
per share 0.03 0.02 0.02 0.07 0.08
--------- -------- --------- --------- ---------
Diluted cash earnings
per share $0.24 $0.20 $0.32 $0.70 $1.05
========= ======== ========= ========= =========
Cash Earnings $69,663 $57,370 $83,830 $198,894 $274,612
Adjustments to cash
earnings:
Loss on mark-to-
market of interest
rate swaps -- -- -- 6,071 --
Post-merger
repositioning
charge -- 27,609 -- 27,609 --
Income tax effect on
adjustments -- (8,849) -- (11,283) --
--------- -------- --------- --------- ---------
Adjusted cash earnings $69,663 $76,130 $83,830 $221,291 $274,612
========= ======== ========= ========= =========
Diluted Cash Earnings
per Share $0.24 $0.20 $0.32 $0.70 $1.05
Loss on mark-to-
market of interest
rate swaps -- -- -- 0.01 --
Post-merger
repositioning
charge -- 0.06 -- 0.07 --
--------- -------- --------- --------- ---------
Adjusted diluted cash
earnings per share $0.24 $0.26 $0.32 $0.78 $1.05
========= ======== ========= ========= =========
(1) Please see the reconciliation of stockholders' equity and
tangible stockholders' equity.
NEW YORK COMMUNITY BANCORP, INC.
RECONCILIATION OF STOCKHOLDERS' EQUITY
AND TANGIBLE STOCKHOLDERS' EQUITY
Although tangible stockholders' equity is not a measure of capital
calculated in accordance with GAAP, the Company believes that it is an
important indication of its ability to grow both organically and
through business combinations, as well as its ability to pay dividends
and to engage in various capital management strategies.
The Company calculates tangible stockholders' equity by
subtracting from stockholders' equity the total of its goodwill and
core deposit intangibles ("CDI"). To calculate its ratio of tangible
stockholders' equity to tangible assets, the Company subtracts the
total of goodwill and CDI from both stockholders' equity and total
assets. The Company's tangible book value is calculated by dividing
its tangible stockholders' equity by the number of shares outstanding
less any unallocated ESOP shares. To calculate its returns on average
tangible assets and average tangible stockholders' equity, the Company
adds the amortization of CDI, net of tax, back to net income and
divides the adjusted net income by its average tangible assets and
average tangible stockholders' equity, respectively. Average tangible
stockholders' equity is calculated by subtracting average goodwill and
average CDI from average stockholders' equity.
Tangible stockholders' equity should not be considered in
isolation or as a substitute for stockholders' equity or any other
capital measure prepared in accordance with GAAP. Moreover, the manner
in which the Company calculates its tangible stockholders' equity and
the related tangible capital measures may differ from that of other
companies reporting measures of capital with similar names.
A reconciliation of the Company's stockholders' equity and
tangible stockholders' equity, total assets and tangible assets, and
net income and adjusted net income at or for the three months ended
September 30, 2006, June 30, 2006, and December 31, 2005 and the nine
months ended September 30, 2006 and 2005 follows:
At or for the
Three Months Ended
--------------------------------------
Sept. 30, June 30, Dec. 31,
(in thousands) 2006 2006 2005
------------ ------------ ------------
Total Stockholders' Equity $ 3,712,010 $ 3,697,170 $ 3,324,877
Less: Goodwill (2,151,951) (2,149,824) (1,980,689)
Core deposit intangibles (111,430) (116,478) (86,533)
------------ ------------ ------------
Tangible stockholders' equity $ 1,448,629 $ 1,430,868 $ 1,257,655
Total Assets $28,924,286 $28,728,824 $26,283,705
Less: Goodwill (2,151,951) (2,149,824) (1,980,689)
Core deposit intangibles (111,430) (116,478) (86,533)
------------ ------------ ------------
Tangible assets $26,660,905 $26,462,522 $24,216,483
Average Stockholders' Equity $ 3,633,268 $ 3,575,874 $ 3,176,719
Less: Average goodwill (2,149,848) (2,100,638) (1,938,147)
Average core deposit
intangibles (114,459) (108,188) (77,805)
------------ ------------ ------------
Average tangible stockholders'
equity $ 1,368,961 $ 1,367,048 $ 1,160,767
Average Assets $28,573,209 $28,551,319 $25,246,283
Less: Average goodwill (2,149,848) (2,100,638) (1,938,147)
Average core deposit
intangibles (114,459) (108,188) (77,805)
------------ ------------ ------------
Average tangible assets $26,308,902 $26,342,493 $23,230,331
Net Income $62,477 $50,612 $36,916
Add: Amortization of core
deposit intangibles, net
of tax 3,020 2,672 1,760
-------------------------------------
Adjusted net income $65,497 $53,284 $38,676
At or for the
Nine Months Ended
-------------------------
Sept. 30, Sept. 30,
(in thousands) 2006 2005
------------ ------------
Total Stockholders' Equity $ 3,712,010 $ 3,252,295
Less: Goodwill (2,151,951) (1,937,680)
Core deposit intangibles (111,430) (78,750)
------------ ------------
Tangible stockholders' equity $ 1,448,629 $ 1,235,865
Total Assets $28,924,286 $25,014,944
Less: Goodwill (2,151,951) (1,937,680)
Core deposit intangibles (111,430) (78,750)
------------ ------------
Tangible assets $26,660,905 $22,998,514
Average Stockholders' Equity $ 3,505,233 $ 3,199,014
Less: Average goodwill (2,077,447) (1,942,033)
Average core deposit intangibles (102,774) (83,447)
------------ ------------
Average tangible stockholders' equity $ 1,325,012 $ 1,173,534
Average Assets $27,973,989 $24,780,803
Less: Average goodwill (2,077,447) (1,942,033)
Average core deposit intangibles (102,774) (83,447)
------------ ------------
Average tangible assets $25,793,768 $22,755,323
Net Income $179,464 $255,169
Add: Amortization of core
deposit intangibles, net of tax 7,670 5,287
------------ ------------
Adjusted net income $187,134 $260,456
NEW YORK COMMUNITY BANCORP, INC.
NET INTEREST INCOME ANALYSIS
(dollars in thousands)
(unaudited)
Three Months Ended
-----------------------------
September 30, 2006
-----------------------------
Average
Average Yield/
Balance Interest Cost
-----------------------------
Assets:
Interest-earning assets:
Mortgage and other loans, net $19,424,240 $288,839 5.94 %
Securities 5,712,371 72,108 5.05
Money market investments 29,436 350 4.72
-----------------------------
Total interest-earning assets 25,166,047 361,297 5.74
Non-interest-earning assets 3,407,162
------------
Total assets $28,573,209
============
Liabilities and Stockholders' Equity:
Interest-bearing deposits:
NOW and money market accounts $3,438,853 $30,397 3.51 %
Savings accounts 2,563,579 5,299 0.82
Certificates of deposit 6,416,244 70,148 4.34
Mortgagors' escrow 103,218 31 0.12
-----------------------------
Total interest-bearing deposits 12,521,894 105,875 3.35
Borrowed funds 10,972,048 115,575 4.18
-----------------------------
Total interest-bearing liabilities 23,493,942 221,450 3.74
Non-interest-bearing deposits 1,228,255
Other liabilities 217,744
------------
Total liabilities 24,939,941
Stockholders' equity 3,633,268
------------
Total liabilities and stockholders'
equity $28,573,209
============
Net interest income/interest rate spread $139,847 2.00 %
=================
Net interest-earning assets/net interest
margin $1,672,105 2.24 %
============ ========
Ratio of interest-earning assets to
interest-bearing liabilities 1.07 x
========
Core deposits $7,230,687 $35,696 1.96 %
=============================
NEW YORK COMMUNITY BANCORP, INC.
NET INTEREST INCOME ANALYSIS
(dollars in thousands)
(unaudited)
Three Months Ended
-----------------------------
June 30, 2006
----------------------------
Average
Average Yield/
Balance Interest Cost
----------------------------
Assets:
Interest-earning assets:
Mortgage and other loans, net $18,936,269 $277,057 5.85 %
Securities 6,104,410 74,610 4.89
Money market investments 44,104 478 4.35
----------------------------
Total interest-earning assets 25,084,783 352,145 5.62
Non-interest-earning assets 3,466,536
------------
Total assets $28,551,319
============
Liabilities and Stockholders' Equity:
Interest-bearing deposits:
NOW and money market accounts $3,803,638 $30,834 3.25 %
Savings accounts 2,582,918 4,434 0.69
Certificates of deposit 5,866,922 59,475 4.07
Mortgagors' escrow 168,149 56 0.13
----------------------------
Total interest-bearing deposits 12,421,627 94,799 3.06
Borrowed funds 10,993,660 113,330 4.13
----------------------------
Total interest-bearing liabilities 23,415,287 208,129 3.56
Non-interest-bearing deposits 1,255,955
Other liabilities 304,203
------------
Total liabilities 24,975,445
Stockholders' equity 3,575,874
------------
Total liabilities and stockholders'
equity $28,551,319
============
Net interest income/interest rate spread $144,016 2.06 %
================
Net interest-earning assets/net interest
margin $1,669,496 2.29 %
============ =======
Ratio of interest-earning assets to
interest-bearing liabilities 1.07 x
=======
Core deposits $7,642,511 $35,268 1.85 %
============================
NEW YORK COMMUNITY BANCORP, INC.
NET INTEREST INCOME ANALYSIS
(dollars in thousands)
(unaudited)
Three Months Ended September 30,
--------------------------------
2006
------------------------------
Average
Average Yield/
Balance Interest Cost
------------ --------- -------
Assets:
Interest-earning assets:
Mortgage and other loans, net $19,424,240 $288,839 5.94 %
Securities 5,712,371 72,108 5.05
Money market investments 29,436 350 4.72
------------ --------- -------
Total interest-earning assets 25,166,047 361,297 5.74
Non-interest-earning assets 3,407,162
------------
Total assets $28,573,209
============
Liabilities and Stockholders' Equity:
Interest-bearing deposits:
NOW and money market accounts $3,438,853 $30,397 3.51 %
Savings accounts 2,563,579 5,299 0.82
Certificates of deposit 6,416,244 70,148 4.34
Mortgagors' escrow 103,218 31 0.12
------------ --------- -------
Total interest-bearing deposits 12,521,894 105,875 3.35
Borrowed funds 10,972,048 115,575 4.18
------------ --------- -------
Total interest-bearing liabilities 23,493,942 221,450 3.74
Non-interest-bearing deposits 1,228,255
Other liabilities 217,744
------------
Total liabilities 24,939,941
Stockholders' equity 3,633,268
------------
Total liabilities and stockholders'
equity $28,573,209
============
Net interest income/interest rate
spread $139,847 2.00 %
========= =======
Net interest-earning assets/net
interest margin $1,672,105 2.24 %
============ =======
Ratio of interest-earning assets to
interest-bearing liabilities 1.07 x
=======
Core deposits $7,230,687 $35,696 1.96 %
============ ========= =======
Three Months Ended September 30,
--------------------------------
2005
--------------------------------
Average
Average Yield/
Balance Interest Cost
-------------- --------- -------
Assets:
Interest-earning assets:
Mortgage and other loans, net $15,634,545 $226,636 5.79 %
Securities 6,174,083 72,404 4.69
Money market investments 29,893 217 2.88
-------------- --------- -------
Total interest-earning assets 21,838,521 299,257 5.48
Non-interest-earning assets 3,171,742
--------------
Total assets $25,010,263
==============
Liabilities and Stockholders' Equity:
Interest-bearing deposits:
NOW and money market accounts $3,683,615 $22,087 2.38 %
Savings accounts 2,540,224 3,061 0.48
Certificates of deposit 4,371,220 31,285 2.84
Mortgagors' escrow 86,253 60 0.28
-------------- --------- -------
Total interest-bearing deposits 10,681,312 56,493 2.10
Borrowed funds 10,070,162 95,939 3.74
-------------- --------- -------
Total interest-bearing liabilities 20,751,474 152,432 2.89
Non-interest-bearing deposits 742,346
Other liabilities 299,650
--------------
Total liabilities 21,793,470
Stockholders' equity 3,216,793
--------------
Total liabilities and stockholders'
equity $25,010,263
==============
Net interest income/interest rate
spread $146,825 2.59 %
========= =======
Net interest-earning assets/net
interest margin $1,087,047 2.73 %
============== =======
Ratio of interest-earning assets to
interest-bearing liabilities 1.05 x
=======
Core deposits $6,966,185 $25,148 1.43 %
============== ========= =======
NET INTEREST INCOME ANALYSIS
(dollars in thousands)
(unaudited)
Nine Months Ended September 30,
--------------------------------
2006
-------------------------------
Average
Average Yield/
Balance Interest Cost
------------ ---------- -------
Assets:
Interest-earning assets:
Mortgage and other loans, net $18,668,144 $821,519 5.87 %
Securities 5,928,496 218,564 4.92
Money market investments 30,164 994 4.41
------------ ---------- --------
Total interest-earning assets 24,626,804 1,041,077 5.64
Non-interest-earning assets 3,347,185
------------
Total assets $27,973,989
============
Liabilities and Stockholders' Equity:
Interest-bearing deposits:
NOW and money market accounts $3,600,867 $87,580 3.25 %
Savings accounts 2,512,672 12,391 0.66
Certificates of deposit 5,859,821 178,115 4.06
Mortgagors' escrow 125,828 141 0.15
------------ ---------- --------
Total interest-bearing deposits 12,099,188 278,227 3.07
Borrowed funds 11,015,469 342,089 4.15
------------ ---------- --------
Total interest-bearing liabilities 23,114,657 620,316 3.59
Non-interest-bearing deposits 1,107,236
Other liabilities 246,863
------------
Total liabilities 24,468,756
Stockholders' equity 3,505,233
------------
Total liabilities and stockholders'
equity $27,973,989
============
Net interest income/interest rate
spread $420,761 2.05 %
========== ========
Net interest-earning assets/net
interest margin $1,512,147 2.27 %
============ ========
Ratio of interest-earning assets to
interest-bearing liabilities 1.07 x
========
Core deposits $7,220,775 $99,971 1.85 %
============ ========== ========
Nine Months Ended September 30,
-------------------------------
2005
------------------------------
Average
Average Yield/
Balance Interest Cost
------------ --------- -------
Assets:
Interest-earning assets:
Mortgage and other loans, net $14,855,006 $630,323 5.66 %
Securities 6,678,537 249,468 4.98
Money market investments 29,009 558 2.57
------------ --------- -------
Total interest-earning assets 21,562,552 880,349 5.44
Non-interest-earning assets 3,218,251
------------
Total assets $24,780,803
============
Liabilities and Stockholders' Equity:
Interest-bearing deposits:
NOW and money market accounts $3,470,270 $54,493 2.10 %
Savings accounts 2,723,074 10,410 0.51
Certificates of deposit 3,995,786 75,422 2.52
Mortgagors' escrow 105,665 193 0.24
------------ --------- -------
Total interest-bearing deposits 10,294,795 140,518 1.82
Borrowed funds 10,250,119 277,550 3.57
------------ --------- -------
Total interest-bearing liabilities 20,544,914 418,068 2.70
Non-interest-bearing deposits 735,791
Other liabilities 301,084
------------
Total liabilities 21,581,789
Stockholders' equity 3,199,014
------------
Total liabilities and stockholders'
equity $24,780,803
============
Net interest income/interest rate
spread $462,281 2.74 %
========= =======
Net interest-earning assets/net
interest margin $1,017,638 2.87 %
============ =======
Ratio of interest-earning assets to
interest-bearing liabilities 1.05 x
=======
Core deposits $6,929,135 $64,903 1.25 %
============ ========= =======
NEW YORK COMMUNITY BANCORP, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(dollars in thousands, except share and per share data)
(unaudited)
For the Three Months Ended
------------------------------------------
Sept. 30, June 30, Sept. 30,
2006 2006 2005
------------- ------------- --------------
GAAP EARNINGS DATA:
Net income $62,477 $50,612 $77,615
Basic earnings per share 0.21 0.18 0.30
Diluted earnings per share 0.21 0.18 0.30
Return on average assets 0.87 % 0.71 % 1.24 %
Return on average tangible
assets (1) 1.00 0.81 1.38
Return on average
stockholders' equity 6.88 5.66 9.65
Return on average tangible
stockholders' equity (1) 19.14 15.59 26.49
Efficiency ratio (2) 40.68 36.45 29.82
Operating expenses to
average assets 0.93 0.86 0.80
Interest rate spread 2.00 2.06 2.59
Net interest margin 2.24 2.29 2.73
Shares used for basic EPS
computation 292,244,262 287,473,052 260,580,328
Shares used for diluted EPS
computation 293,550,619 288,948,750 262,615,785
Operating earnings $62,477 $69,372 $77,615
Basic earnings per share 0.21 0.24 0.30
Diluted earnings per share 0.21 0.24 0.30
Return on average assets 0.87 % 0.97 % 1.24 %
Return on average tangible
assets (1) 1.00 1.09 1.38
Return on average
stockholders' equity 6.88 7.76 9.65
Return on average tangible
stockholders' equity (1) 19.14 21.08 26.49
Efficiency ratio (2) 40.68 36.45 29.82
CASH EARNINGS DATA: (4)
Cash earnings $69,663 $57,370 $83,830
Basic cash earnings per
share 0.24 0.20 0.32
Diluted cash earnings per
share 0.24 0.20 0.32
Cash return on average
assets 0.98 % 0.80 % 1.34 %
Cash return on average
tangible assets (1) 1.06 0.87 1.46
Cash return on average
stockholders' equity 7.67 6.42 10.42
Cash return on average
tangible stockholders'
equity (1) 20.35 16.79 27.98
Cash efficiency ratio (2) 39.72 35.51 28.76
ADJUSTED CASH EARNINGS DATA:
(4)
Cash earnings $69,663 $76,130 $83,830
Basic cash earnings per
share 0.24 0.26 0.32
Diluted cash earnings per
share 0.24 0.26 0.32
Cash return on average
assets 0.98 % 1.07 % 1.34 %
Cash return on average
tangible assets (1) 1.06 1.16 1.46
Cash return on average
stockholders' equity 7.67 8.52 10.42
Cash return on average
tangible stockholders'
equity (1) 20.35 22.28 27.98
Cash efficiency ratio (2) 39.72 35.51 28.76
For the Nine Months Ended
---------------------------
Sept. 30, Sept. 30,
2006 2005
---------------------------
GAAP EARNINGS DATA:
Net income $179,464 $255,169
Basic earnings per share 0.64 0.98
Diluted earnings per share 0.63 0.97
Return on average assets 0.86 % 1.37 %
Return on average tangible assets (1) 0.97 1.53
Return on average stockholders' equity 6.83 10.64
Return on average tangible stockholders'
equity (1) 18.83 29.59
Efficiency ratio (2) 37.54 27.90
Operating expenses to average assets 0.87 0.81
Interest rate spread 2.05 2.74
Net interest margin 2.27 2.87
Shares used for basic EPS computation 282,314,713 260,221,487
Shares used for diluted EPS computation 283,779,872 262,363,539
OPERATING EARNINGS DATA (3)
Operating earnings $201,861 $255,169
Basic earnings per share 0.72 0.98
Diluted earnings per share 0.71 0.97
Return on average assets 0.96 % 1.37 %
Return on average tangible assets (1) 1.08 1.53
Return on average stockholders' equity 7.68 10.64
Return on average tangible stockholders'
equity (1) 21.08 29.59
Efficiency ratio (2) 37.08 27.90
CASH EARNINGS DATA: (4)
Cash earnings $198,894 $274,612
Basic cash earnings per share 0.70 1.06
Diluted cash earnings per share 0.70 1.05
Cash return on average assets 0.95 % 1.48 %
Cash return on average tangible assets (1) 1.03 1.61
Cash return on average stockholders' equity 7.57 11.45
Cash return on average tangible
stockholders' equity (1) 20.01 31.20
Cash efficiency ratio (2) 36.57 26.90
ADJUSTED CASH EARNINGS DATA: (4)
Cash earnings $221,291 $274,612
Basic cash earnings per share 0.78 1.06
Diluted cash earnings per share 0.78 1.05
Cash return on average assets 1.05 % 1.48 %
Cash return on average tangible assets (1) 1.14 1.61
Cash return on average stockholders' equity 8.42 11.45
Cash return on average tangible
stockholders' equity (1) 22.27 31.20
Cash efficiency ratio (2) 36.12 26.90
(1) Please see the reconciliation of stockholders' equity and tangible
stockholders' equity.
(2) The Company calculates its GAAP, operating, and cash efficiency
ratios by dividing the respective operating expenses by the
respective sums of net interest income and non-interest income.
Please see the reconciliations of GAAP and operating earnings and of
GAAP and cash earnings and adjusted cash earnings.
(3) Please see the reconciliation of GAAP and operating earnings.
(4) Please see the reconciliation of GAAP and cash earnings and
adjusted cash earnings.
NEW YORK COMMUNITY BANCORP, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(unaudited)
At Sept. 30, At June 30, At December 31,
2006 2006 2005
-----------------------------------------
BALANCE SHEET DATA:
Book value per share $12.66 $12.62 $12.43
Tangible book value per share
(1) 4.94 4.88 4.70
Stockholders' equity to total
assets 12.83 % 12.87 % 12.65 %
Tangible stockholders' equity
to tangible assets (1) 5.43 5.41 5.19
Tangible stockholders' equity
to tangible assets
excluding after-tax net
unrealized losses on
securities (1) 5.63 5.69 5.41
Shares used for book value
and tangible book value
computation (1) 293,217,441 293,062,701 267,594,393
Total shares issued and
outstanding 295,117,419 295,056,819 269,776,791
ASSET QUALITY RATIOS:
Non-performing loans to total
loans 0.16 % 0.16 % 0.16 %
Non-performing assets to
total assets 0.12 0.11 0.11
Allowance for loan losses to
non-performing loans 265.98 282.05 289.17
Allowance for loan losses to
total loans 0.43 0.44 0.47
(1) Please see the reconciliation of stockholders' equity and tangible
stockholders' equity.
CONTACT: New York Community Bancorp, Inc.
Ilene A. Angarola
First Senior Vice President
Investor Relations
516-683-4420